The Indian Institute of Planning & Management

PROJECT REPORT ON Application of Lean principle in New Product Development At TATA motors SUBMITTED TO:

SUBMITTED BY: ABHAY PANDEY UNIQUE ID- D1012SSISBE-A-10247 (LCK)

A report submitted in partial fulfillment of the requirements of MBA Program IIPM IIPM TOWER, SATBARI, CHANDAN HAULA, CHATTARPURBHATIMINES ROAD, NEW DELHI.

DECLARATION
I hereby declare that the project report entitled Application of Lean principle in New Product Development. Is the produce of my sincere effort. This Summer Internship Project Report is being submitted by me alone, at Indian Institute of Planning & Management (IIPM) New Delhi, for the partial fulfillment of the course MBA, and the report has not been submitted to any other Educational institutions or for any other purpose whatsoever.

Abhay Pandey IIPM, New Delhi) (Student of

CERTIFICATE
This is to certify that the project work entitled Application of Lean principle in New Product Development.Is a piece of bonafide work done by Abhay Pandey, student of Indian Institute of Planning & Management (IIPM), under my guidance and supervision for the partial fulfillment of the course MBA, at Indian Institute of Planning & Management (IIPM) New Delhi. To the best of my knowledge and belief the thesis embodies the work of the candidate himself and has been duly completed. Simultaneously, the thesis fulfills the requirements of the rules and regulations related to the summer internship of the institute and I am assured that the project is up- to the standard both in respect to the contents and language for being referred to the examiner.

Sa ket roject Head) Dwivedi (P

ACKNOWLEDGEMENT
It is with immense satisfaction that, I am completing my summer project report; I therefore would like to wait for few moments and thank IIPM for encouraging me to take up my summer internship. I am also very thankful to all the faculties and my special thanks to Mr. Pushp Lamba sir, who supported me and guided me about corporate world and provided some valuable information. I would also like to thank TATA MOTORS LTD. who allowed me to do my summer training and helped me in completion of my project. I am extremely grateful to all concern employees for their support. I like to express my special and sincere thanks to Mr. Saket Dwivedi (Project head) under whom I had gained lot of experience and got to know the functioning of a firm in corporate world.

CONTENT

1. Introduction
2.

Questionnaire

3. Survey Data 4. Analysis

5.

Why Analysis Conclusion and Suggestions Bibliography

6.

Table of Contents
Declaration Certificate from Faculty guide Acknowledgement Contents with chapters and sub-chapters Executive Summary

1. Introduction
1.1 Approach to Applying lean principle.............................. 1.2 New Product Introduction....................................................

08-11
08-09 09-11

2. Work Plan 2.1 Questionnaire.................................. 2.2 Survey Data............................................ 2.3 Pareto Analysis........................................... 3. Introduction to Financial Analysis 3.1Comaprision........................................................ 3.2Benchmarking.....................................................

12-19 13-14 14-16 17-19 20-23 21-22 23-23

4. Analysis 24-32
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4.1 Root Cause Analysis.. 4.2 Why Why Analysis.

24-24 25-29

4.3Ishikawa diagram....................................
5. Discussion and Suggestion 6. Response To Waste Bibliography

30-32
33-35 36-37

Application of Lean principle in New Product Development At TATA motors

Abstract: Lean principles have been applied throughout the manufacturing industry with noted success although the process of integrating them into the entire enterprise has been complex and slow. Certain areas of TATA motors require a deeper study of its readiness to transition to lean. This analysis is about the application of lean principles in NPD process (new product development)where the reduction of time, cost, labour and some more wastage (muda) has to be make.. A survey was undertaken to find the gaps in new product development process which was benchmarked with other auto motive companies and through the out come of the survey some steps were suggested to improve them.

Introduction Since formal introduction of lean principles numerous companies have benefited from integrating lean in manufacturing .An example throughout several industries is the dramatic reduction of waste by decreasing or eliminating batch sizes in order to achieve one piece flow down the production line. Other examples includes manufacturing cycle time reductions, sequenced supplier shipment to align with production schedules and first time quality using error-proofing or pokayoke devices. These methods along with many others have helped numerous companies achieve over whelming success on the plant floor. Lean has also extended to areas such as order taking , delivery and accounts receivables/payable. It is nearly a universal agreement that practicing lean yields significant improvements that support reaching the unique goals of various industries. Even with the noted success of lean production ,there have only been small victories in applying lean to product development . These are typically reffered to islands of success and have not grown significantly in size. The companys competitive strengths includes worldwide segments leadership , global product development , capability and plat forms , global distribution network , well known brands ,strong union relations and a strong balance sheet. These strengths have helped the company remain a strong force in the automotive industry how ever there is concern that if they do not cut the fatout of the development process , competitors could capture valuable market share with first-to-market new product. There is general agreement throughout the company that improvements must be in order to simulate the customer base , reach the financial goals and grow the business .Many believe that lean is the path to take in order to achieve this success. This allows for the frame work in order to assess the current state of product development. Approach to Applying lean principle:As lean is integrated to industries, there has been increasing success. Lean typically begins with manufacturing as there are clear rules to follow and wealth resources to aid in implementation. Companies has also grown lean manufacturing to lean function area in creating islands of 10

success. As the islands interacts with other function, lean function continues to grow to include product development marketing human resources purchasing and so on. After large amount of waste are identified and eliminated from the process, the companies transition and focus from minimizing waste and creating value. Large scale value creation evolves through enterprise and all stake holders, industry, government, suppliers and employees. The sooner the enterprise is engaged the faster benefits are revealed.

It is necessary to develop unique lean principle definition for an enterprise or a segment of an enterprise in order to reduce confusion during the integration process. If only views the production definition, the production development function may not take the task as relevant since there are not ye physical product to apply the definition to. And by only focusing on the behavioral definition, the task may be perceived as strictly enhancing the soft side of the business. In the case of product development, a combination of behavioral and product development process specific definition is required to clearly teach the role of lean in enterprise.
Lean principles Lean production Lean behaviors understand the wants and expectations of the people that we interact with Lean product development Realize the program's expectations and technical challenges while holding timing as scared. Understand the cross functional communication required to achieve seamless access to knowledge and inputs are attained at the proper timing and commit to them with minimal change.

Value

Value is defined by the customers.

Value stream

Understand all the specific actions required to product and eliminate the waste

Flow

get the value-creating steps to move continuously without interruption.

Pull

Perfection

Respond to the demand of the customer Systematically continue to improve value, flow, pull and waste elimination in production.

Understanding what people do and why they do it Behave in a manner that minimizes or eliminates delays or stoppages in the work performed by others . Recognize that people operate under many models which require us to adjust our styles or approach often. Systematically identify and eliminate behavioral waste

Ensures that knowledge and inputs are attaining at the proper timing and commit to them with minimal change.

Ability to provide timely and accurate response to the needs of the program. Systematically identify and eliminate waste in developing products,

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In TATA motors NPI process was studied and the project involved application of lean principles to new product development process at TATA Motors.

NPI (new product introduction) ,its is the first and the last channel for an new product development. Where the requirements for any new product given by marketing department to NPI then NPI follows some certain phases as follows: New Product Definition Phase This phase involves the definition of a possible product to introduce into the development process. Clearly, key issues to be worked at this point are the customer needs for such a product, market sizing, projected sales and profit estimates and the fit into the existing product portfolio. The objective is to define a product that fits with the existing portfolio such that the development expertise, manufacturing capability, sales channels and existing customer base fits the proposed product. A further step is to prioritize the product being considered such that several new opportunities can be compared and the best one moved into development. R&D Investigation Phase A sound prioritization is ideal here because the objective is to focus R&D resources on product opportunities that will generate significant revenue downstream. The objective of this phase is for the R&D team, along with ancillary support from the other team members, to detemine the technical feasibility of the product and if key target specifications can be met such that the defined customer needs can be fulfilled. Development Phase The objective here is to develop small volume prototypes or a least a high confidence design that is ready to enter the production phase. The key deliverables are gaining additional confidence that the defined product is manufacturable at a cost that will meet the market price and profit objectives. Also, target specs and manufacturing documents are completed for a transfer to manufacturing. If prototypes are available at this point, key customers can be sampled to gain price and performance feedback and any key changes can be be captured. 12

Manufacturing Phase The deliverables in this phase are to take the design and manufacturing documentation completed in the previous step and see if manufacturing can indeed build the product in the existing, or in some cases, modified production line at a cost and specification yield that demonstrates that it is a manufacturable product that meets the target specs and cost targets. A further step here is to build sufficient inventor for the Market Introduction Phase. Market Introduction Phase Once sufficient product inventory is completed and available in-stock, the market Introduction process can be started. This is a very important step and very often ignored or not supported well. To a large extent the importance of this step depends of the size of the served customer base and the geographical diversity. Products like components that are sold worldwide to a large number of customers are served by various sales channels; direct, reps and Distributors. The objective here is to insure the sales channel is trained on the new product, inventory and samples are available in the field, product documentation is in the hands of the channel, price lists are updated to include the new product, press releases are in process and many other steps are underway that inform the world that the new product is available and ready for sale.

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Work plan
N wP u t D v lop e t P e sA p a e rod c e e m n roc s p lic tionof le np c le inN D to E h n eO e tion l C p titiv n s - AP c T e e a rin ip s P n a c p ra a om e e e s roje t im lin Mon th Ma 0 0 y,2 1 Ju e 0 0 n ,2 1

D liv rab s e e le
S tudy Lean principle Techniques

Dy a

1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 1 2 3 4 5 6 7 8 91 1 1 1 1 1 1 1 1 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 0 1 2 3 4 5 6 7 8

Plan Actual Plan Actual Plan Actual Plan Actual

Preparation of Queistionnaire Data acquisition proform a consult Depts. About issues S ervices S tudy of Pareto,lean principle,QCtools and why why form at Go through the balance sheet of TATA m otors

Plan Actual Plan Actual

S tudy of cost analysis of TATA m otors Plan Actual Com parision of cost analysis of TATA m otors with other autom obile com panies Analyze processes in other com panies

Plan Actual Plan Actual Plan Actual Plan Actual

Identify gaps in NPDprocess S uggestion of S tandards and Measures

Firstly I have surveyed the whole process of various department related to NPI. Then we visited several departments like:1:-VQA (vendor quality assurance) 2:-ERC (engineering research center) 3:-SQIG (supplier quality improvement group) 4:-Sources 5:-CQ (central quality) 6:-TS (technical services) 7:-Planing While interacting with these departments various issues was highlighted according to which we prepared the questionnaire which is as follows:-

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Questionnaire 1.) Do you think there is proper communication between NPI and your department leading to timely completion of work? 2.) Is there proper support from NPI to your department in relation to your work? 3.) Do you believe that there is proper co-ordination between NPI and your department?. 4.) Do you believe that timelines of new product development are too short to complete new product development work? 5.) Due to short stretched timelines, there is a bypass of the process flow in the NPI 6.) Do you agree that due to short deadlines, sometimes compromises to quality standards are made to new product development 7.) Do you think existence of a centralized database of documents/drawings would allow for easier communication amongst departments 8.) Do you believe a lack of proper documentation from the NPI causes problems in the working in your department? 9.) Commonization of parts for different vehicle models is considered well in advance in order to reduce lead time 10.) Do you believe proper prior information is given by NPI to you regarding new model planned? 11.) Do you believe that greater emphasis is placed on existing products rather than on new products 12.) Do you agree that there is timely inputs from NPI and other departments, which allows timely completion of your own work? 13.) The NPI group members are accessible for any input/help required for the completion of your work 14.) NPI utilizes the feedback given by you in its forthcoming projects 15.) Do you believe that there are excessive iterations in Designing/ Modification of a New Product, affecting lead time and product cost 16.) Do you believe proper tools and facilities are made available for the completion of new product development work? 17.) Do you believe that NPD Process at TATA Motors are on par with other CV Manufacturers worldwide? Some other detailed questions were asked and further analyzed to get a better insight into what were considered as other important issues affecting the product development process: 18.) Please specify any other problems you might face in collaborating with NPI in new product development process 19.) If answer to above is No, could you please specify the parameters on which you think we lag behind? 20.) What other suggestions would you give for the improvement in the working of NPI?

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SURVEY DATA
Agree Neutral Disagree

Survey Data
80 70 60 50 40 30 20 10 0 Improper Lack of proper communication support lack of small duration for coordination production

Percentages

Issue s w ith NPD P roce ss

16

Survey Data
90 80 70 60 50 40 30 20 10 0 bypass of process flow compromise to quality due to short timeline lack of centralized database poor documentation

Percentages

Issues with NPD Process

Survey Data
60 Percentages 50 40 30 20 10 0 noncommonization of parts lack of prior information less emphasis on New product development delay in inputs from NPI

Issues with NPD Process

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S u rv e y D a ta
60 50 40 Percentages 30 20 10 0 L a c k o f a c c e s s ib ilitnyo o f u t iliz a t io n e x c e s s iv e it e r a t io nnso in- a v a ila b ilit y o f n of n NP I m e m b e rs f e e d b a c k d e s ig n in g / m o d if ic a t io fna c ilit ie s Is s u e s w ith N P D P r o c e s s

The above data was analyzed using Pareto method

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Pareto analysis:It is a statistical technique in decision making that is used for selection of a limited number of tasks that produce significant overall effect. It uses the Pareto principle the idea that by doing 20% of work you can generate 80% of the advantage of doing the entire job. Or in terms of quality improvement, a large majority of problems (80%) are produced by a few key causes (20%). Pareto analysis is a formal technique useful where many possible courses of action are competing for your attention. In essence, the problem-solver estimates the benefit delivered by each action, then selects a number of the most effective actions that deliver a total benefit reasonably close to the maximal possible one. Pareto analysis is a creative way of looking at causes of problems because it helps stimulate thinking and organize thoughts. However, it can be limited by its exclusion of possibly important problems which may be small initially, but which grow with time. It should be combined with other analytical tools such as failure mode and effects analysis and fault tree analysis for example. This technique helps the individual to identify the top 20% of causes that needs to be addressed to resolve the 80% of the problems. Once the top 20% of the causes are identified and then tools like the Ishikawa diagram or Fish-bone Analysis to be used to identify the root causes of the problems The application of the Pareto analysis in risk management allows management to focus on the 20% of the risks that have the most impact on the project. The pareto analysis which we have made on the data through the questionnaire is as follows:-

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la ck of
Agrees per issue

Lack of centralized database short timelines delays in input from NPI poor documentation improper communication lack of coordination non-utilization of feedback excessive iterations non- commonization of parts lack of prior information

200 150

300 250

400 350

500 450

550

600

100 50

questionnaires are as follows:-

Issues in NPD process

Pareto Chart

The major issues which was derived through the pareto analysis of the database through the

ce nt ra de liz la y s ed Im p in i ho da pr oo np rt t tab o r u im a no p er do ts f el se n lac cocum ro mine ut k m e no ili o m n N s za f u ta P nco ex tio coo nic tio I m c n r a n la m es of din tio ck o si fe a n v La o f niza e i ed tion c p t t e ba in co k o rior ion rat ck ac i ce by mp f pr inf of ons ss pa ro op orm pa ib ss mi er a rts il s s t no les it y of p e to up ion n- s e of N ro q po av m P ce ua rt ai ph I ss lit la a m f y bi si e m low lit s y o be of n rs fa N P ci D lit ie s

20

10

20

30

40

Cumulative %

50

60

70

80

90

100

Other issues highlighted by the membersmotors departments Mahindra TATA of other Ashok Maruti Lack of Involvement of TS in meetings for their projectsLeyland of NPD 2009 2009 2009 Lack of co-ordination within NPI members, repetetion of2009 to different people needed to get work done issues NPI monthly plans of Vehicles to be rolled out in advance Sales turnover 28538.2 6,709.61 14,713.03 23,381.50 Unique Part Duty be provided in advance Excise List to 2,877.53 657.97 1,587.05 2,652.10 Dealing with introduction of only existing products, instead of actually doing NPD Net operating income 25,660.67 6,051.64 13,125.98 20,729.40 Lack total income (incl stocks, 26,343.92 among members of NPI of technical knowledge, especially designing 6,123.76 13,339.54 20,864.50 Excessive no. of drawings provided, not always used completely invest) Too many changes in BOM/Validity: Lack of co-ordination between NPI and TS No Base document available Expenditure No proper materials Raw DFMEA,PFMEA 18,801.37 4,554.36 9,208.71 15,983.20 Lack % proper analysis for failure causes before sending to dealers of 73.26920926 75.2582771 70.15636166 77.10401652 Lack of quality checks due to short timelines Power & Fuel Cost 304.94 38.42 98.69 193.6 Mapping of New product vis--vis base model % 1.188355565 0.634869226 0.75186767 0.933939236 lack of timely availasbility of data Employee Cost 1,551.39 566.26 1,024.61 471.1 No adherence and information flow regarding project timelines and reviews % timelines and priority as per market niche 6.04578914 9.357132942 7.805969535 2.272617635 Project Manufacturing 866.65 75.36 716.1 Lack Other of knowledge regarding new technologies (Hybrid,50.3 Tribrid) Expenses drawing changes rather than process changes Focus more on % 3.377347513 0.831179647 0.57412856 3.454513879 PPAP of vehicular parts not properly done Selling and Admin Expenses rollout 1,652.31 381.48 954.83 751.06 Ownership issues of vehicles after % 6.439075831 6.303745761 7.2743521 3.62316324 Miscellaneous Expenses 1,438.89 0 558.07 303.44 % 5.607375022 0 4.251644449 1.463814679 Total Expenses 23,699.53 5,582.62 11,877.44 18,396.20 PBDIT profit from sales other income+ stock adj % 2,644.39 1,961.14 683.25 74.16228317 541.14 469.02 72.12 86.67258011 1,462.10 1,248.54 213.56 85.393612 2,468.30 2,333.20 135.10 94.5265973

Financial statement of TATA motors compared to others:-

Financial analysis Salient points from data studied of the balance sheet of various companies Raw material costs are increasing at TATA and AL but showcase a decrease in Mahindra and Maruti. Although the production volume at TATA is much more as compared to the other companies, yet the percentage of net operating income is similar across all companies with profit due to sales lowest across the four companies, which may be an indicative of the fact that their might be wastage of resources at TATA and more focus on communization of parts at other companies. 21

Fuel and power costs are decreasing across the board except for Maruti Ltd. However, the other companies have a still significantly low percentage expenditure on energy resources. Although the production volumes in these companies are low, yet it still indicates a better utilization of resources by these companies. Employee costs are shown to have a decreasing trend initially with a subsequent increase in the last couple of years. This might be an indication at companies trying to retain their manpower capital, which would help in better production levels and efficient completion of projects. However, TATA shows a rise only in the last financial year indicating a late joining to the trend of retention of human resource capital. Other manufacturing expenses, which include maintenance costs for machines and plant facilities and the losses incurred due to wastage of tools or machine parts or their loss after life-cycle completion, generally shows a decreasing trend across the various companies except Maruti. Yet, the percentage spent on this head is significantly higher at TATA, indicating that a lot of cost might be going into production of resources that are unutilized due to poor communication between departments, lack of a centralized database system which could allow for production units of components to view and discuss changes during design process and improper usage of available resources. Also, with the number of new models being launched at TATA motors being one of the

highest, short timelines between projects might be the cause for wastage of resources by not following the ideal process. Miscellaneous expenses are increasing at TATA motors and Mahindra but show a decreasing trend with AL and Maruti. These expenses, which might be inclusive of the of the amounts spent in ERC activities will be showcasing that TATA Motors continues to be a major spender in R&D activities, with about Rs1467 Cr pledged to R&D in the past financial year and Rs.1018 Cr. The year before, yet the profit from sales is generally less compared to the other manufacturers and shows a decreasing trend. This might be due to utilization of the capital in R&D activities which are iterative, require greater use of time and money without adding sufficient value and that non- communization of parts is occurring here, with almost similar parts being produced as new parts and components. 22

Benchmarking of New Product Development Process The issues which were discovered through survey were benchmarked with other auto mobile companies to determine best practices and reduce the gaps in NPD process.

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TABLE OF COMPARISON OF PROCESSES AT DIFFERENT COMPANIES Lack of centralized improper communication, database and poor short timelines, lack delays in input from NPI, documentation of prior information lack of coordination noncommonization of excessive parts iterations linear system of designing, with excessive iterations on the same component to include all

Issues Companies

non-utilization of feedback

TATA Motors

system involved has SAP, PLM and online drawings accessible to some people

Ashok Leyland

SAP

41 CV product launches/year less weightage given to therefore very short issues of other departments timelines between by NPI employees, leading to projects communication gaps 30 new models on utruck platform in 18 months

not carried out completely with no proper feedback collection several similar yet and utilization system new parts being regarding project and team produced for members. different vehicles

Toyota

SAP, iStarXchange for part information, supply and online procurement,Trad eMatrix system for warehousing, 21 new models and logistics nd variants launched shipping during 2009

To solicit feedback from employees, the company operates a traditional suggestion box program and an email suggestion box. An employee satisfaction survey is conducted every 12 months.In addition, managers host informal meetings with randomly selected employees

Volkswagen CMI 4 step process using process analysis, six- sigma and root cause analysis to model proces flow and documentation

10 new CV models / year

engineers create multiple systematic alternative carryover and solutions for sharing of parts each component, among different each alternative models with is evaluated standardization a against routine performance procedure tradeoffs,combin part commonization and standardization procedures followed since 1995-97, when

Volvo

utilization of SCOR model to commonize parts one on a team and contributing to a team may be evaluated by an group cohesiveness assessment from others. increased by goal-setting, Through this assessment one effective group task design, should have the ability to be relevant group feedback, presented with performing group training and group and nonperforming development, and a reward behaviors which one has system engaged

General Best Practices

The benchmarking process helps us to determine the best practices from which the calculation of Gaps in TATA Motors new product development process was made.

Root cause analysis

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Root cause analysis (RCA) is a class of problem solving methods aimed at identifying the root causes of problems or events. The practice of RCA is predicated on the belief that problems are best solved by attempting to correct or eliminate root causes, as opposed to merely addressing the immediately obvious symptoms. RCA, initially is a reactive method of problem detection and solving. This means that the analysis is done after an event has occurred. By gaining expertise in RCA it becomes a pro-active method. However, it is recognized that complete prevention of recurrence by a single intervention is not always possible. Thus, RCA is often considered to be an iterative process, and is frequently viewed as a tool of continuous improvement.

WHY WHY analysis:25

The major issues which were driven through the Pareto analysis, we make an why why analysis on those issues:ISSUE 1: FINDING (NONCONFORMITY) Lack of centralized database for online drawings and documentation, resulting in miscommunication and delays in interactions between departments. . Poor documentation techniques also followed with no proper support base documents being supplied for background knowledge DESCRIPTION OF OBJECTIVE EVIDENCE Statistical Knowledge with 90% of surveyed members from other departments stating the lack of a centralized database as a hindrance for proper and timely completion of their work and 54.5% of surveyed members agreeing that poor documentation causes problems ROOT CAUSE ANALYSIS. Determine what caused the failure in the system to allow this nonconformity to occur..Ask yourself 5 times "why". Why 1? Improper utilization of existing systems with accessibility of drawings and models not available to other departments, causes problems in designing, procurement and modifications of components. Also no proper documents for the entire product development process are maintained. Why 2 ? Stretched timelines make it difficult for cross- functional team members to update databases regularly, leading to improper maintenance of records. Why 3 ? No single system utilized, with multiple systems serving different purposes being used to communicate. No system to keep design and product related documents separately. Why 4 ? Why 5 ? root cause non- existence of a single database system with provisions for related to: easy updation Corrective action - Creation of a holistic database system with all design models, drawings, part lists, other associated documents like Project Initiation documents placed under a model name and access to restrictive information through password system.

Issue 2: FINDING (NONCONFORMITY) 26

Short timelines, lack of prior information about the new product resulting in delays in the process of a new product development DESCRIPTION OF OBJECTIVE EVIDENCE Statistical knowledge with 72% of surveyed members from other departments stating that Short timelines for a new project makes them to skip some process and 40% have stated that due to lack of prior information they are unable to cope up with the short time lines ROOT CAUSE ANALYSIS. Determine what caused the failure in the system to allow this nonconformity to occur .Ask yourself 5 times "why". Why 1 ? Stretched timelines for all departmental members because of large workload and reduced manpower forces available. Why 2 ? Members of NPI are assigned other work along with NPD processes, which are meant to help improve the process but take up considerable time by themselves and making it difficult for them to cope up with the work. Why 3? Large number of new models and variants are introduced each year, increasing the workload on the CFT members Why 4 ? TATA Motors focuses on trying to meet the large customer demands in the Commercial Vehicles section, thus sometimes leading to a decrease in the level of quality of the product. Why 5 ? Excessive number of variants and models being produced without adequate manpower

root cause related to:

Corrective action -Reduced Number of models to be delivered in a year to be decided keeping in mind the workload of employees and quality standards to be met, allowing for easier timelines for completion of better quality work.

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Issue 3:

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FINDING (NONCONFORMITY) improper communication, delays in input from NPI, lack of coordination between the NPI group and the other departments working in cross- functional teams. DESCRIPTION OF OBJECTIVE EVIDENCE Statistical knowledge with 45% of surveyed members of other departments stating the problem of Improper communication,63%stating the problem of Delay in input from NPI and 45%stating the problem of lack of coordination from NPI. ROOT CAUSE ANALYSIS. Determine what caused the failure in the system to allow this nonconformity to occur .Ask yourself 5 times "why". Why 1 ? Due to lack of coordination , repetition of issues are made to different peoples Why 2 ? Misinterpretation of information which delays the process ,due to improper communication. Why 3 ? Short timelines for most departments leads to the fact that if even one of them exceeds its deadlines, other departments suffer from delays too Why 4 ? Other departments unwilling to cooperate with NPI because of no proper follow through of process flow by NPI members Why 5 ? root cause related short timelines and coordination gap amongst to: departments

Corrective action - All the non conformities mentioned such as delays in input from NPI, improper communication and lack of coordination stems from a communication gap between NPI and the other departments. If the feedback is given face to face to members of NPI with proper documents, then the communication gap which is there between NPI and other departments will be reduced and when NPI will take action on those feedback flaws in NPI process can be reduced and delays in input will also be reduced.

Issue 4: FINDING (NONCONFORMITY) non-utilization of feedback 29

DESCRIPTION OF OBJECTIVE EVIDENCE

Statistical data of 45% of the surveyed members of other department stating the problem of Non-Utilization of feed back which make NPI to do the same mistake again and again ROOT CAUSE ANALYSIS. Determine what caused the failure in the system to allow this nonconformity to occur .Ask yourself 5 times "why". Why 1 ? Disregard for the feedback from other departments by NPI employees Why 2 ? No proper system for the analysis of feedback from different systems, hence feedback obtained is generally disregarded Why 3 ? Informal system for collection of feedback from other departments Why 4 ? Short timelines for the products does not allow for a proper collection and analysis of feedback from the CFT team members. Why 5 ? root cause no proper analysis of related to: feedback Corrective action One on a team and contributing to a team may be evaluated by an assessment from others. Through this assessment one should have the ability to be presented with performing and nonperforming behaviors which one has engaged. This type of one-on-one communication would help alleviate the problem. A feedback collection system, with online filing of feedback forms regarding members of cross- functional teams can be maintained and reviewed at the end of each phase of product development.

Issue 5:

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FINDING (NONCONFORMITY) excessive iterations in designing/ modeling as well as in other document production activities like BOM etc. DESCRIPTION OF OBJECTIVE EVIDENCE In a survey of various departments, 40.9% of the surveyed members believe that there is Excessive Iterations in the designing process at ERC level ROOT CAUSE ANALYSIS. Determine what caused the failure in the system to allow this nonconformity to occur. Ask yourself 5 times "why". Why 1 ? Improper designing and simulation exercises conducted at the initial stages Why 2 ? Lack of proper technical knowledge amongst members of NPI and ERC, causes delay in the finalization of new product design Why 3 ? Delays in modification of BOM by TS, hence parts have to be redesigned as and when changes are made. Why 4 ? Design have to be modified because of the non- availability of certain components of the new vehicles, causing further details Why 5 ? Root cause improper designing and simulation, late related to: freezing of BOM Corrective action Engineers should create multiple alternative solutions for each component, each alternative would then be evaluated against performance tradeoffs, and from considered options, unsuitable ones are rejected but their exceptional features are integrated into the new options being considered. Also many new spin-off products can be created from the rejected options.

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Ishikawa diagram Ishikawa or Cause and Effect diagrams are diagrams that show the causes of a certain event. Common uses of the Ishikawa diagram are product design and quality defect prevention, to identify potential factors causing an overall effect. Ishikawa diagram, in fishbone shape, shows factors of Equipment, Process, People, Materials, Methods and Management, all affecting the overall problem. Smaller arrows connect the sub-causes to major causes.

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Discussion and Suggestion

The main purpose of this project was to identify the various issues which were affecting the NPI process in TATA motors. The issues which come out after the survey which was done with members of various department associated with NPI are as follows: Lack of a centralized database system for the sharing of all drawings, design models, tests and analysis reports and project related documents, which could be accessed by the concerned employees as and when required during the process of their work. Stretched timelines for new product launch makes members of other department to skip several steps in NPD process which does not lead a new product a quality product because members of other department could not cope up with the stretched time lines. 34

Delays in input from NPI and lack of coordination with other associated department, lead to delay in work completion by the departments. Due to short time lines departments are forced to cut short the process.

Informal or no proper system exist for collection of feedback from other department which lead department to do the same mistakes again, which leads later to lack of coordination between NPI to various department.

Excessive iterations in the process of designing, as well as extensive modifications in the BOM after its initial clearance, often causes the problems to other departments like SQIG, CQ and VQA amongst others in their work of procurement and validation of the vehicle and its aggregates. These also lead to further delaying the product development process.

Very little commonization of parts amongst different vehicles was followed in the new product development. This issue lead to unnecessary delays in the development of vehicles and non utilization of existing parts.

Suggestions from members of other Departments:

Ser. No. 1 2 3 4 5 6 NPI to get involved in the whole process right up to body building and delivery of vehicles to customers. More focus on quality than quantity. More coordination between NPI &TS right from 1st vehicle. Working on introduction of new products rather than introduction of old models. Involvement of TS in all meetings held for NPI projects. Setting up of centralized system for online drawings/models

Suggestions

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The problems mentioned above were considered and suggestions formulated to help the closure of Gaps in the product development practices at TATA Motors with the best practices worldwide. These suggestions are enumerated as follows: Creation of a holistic database system with all design models, drawings, part lists, other associated documents like Project Initiation documents placed under a model name, with the folder being generated at the Project Initiation stage. The database could be updated by simply forwarding all related documents and mails to the model folder, and access to restrictive information through password system. All the non conformities mentioned such as delays in input from NPI, improper communication and lack of coordination stems from a communication gap between NPI and the other departments. If the feedback is given face to face to members of NPI with proper documents, then the communication gap which is there between NPI and other departments will be reduced and when NPI will take action on those feedback flaws in NPI process can be reduced and delays in input will also be reduced. One on a team and contributing to a team may be evaluated by an assessment from others, who may be the members from other departments associated with the particular product development. Through this assessment one should have the ability to be presented with performing and non-performing behaviors in which

one has engaged. This type of one-on-one communication would help alleviate the problem of lack of coordination amongst the different departments.

Engineers should create multiple alternative solutions for each component, each alternative would then be evaluated against performance tradeoffs, and from considered options, unsuitable ones are rejected but their exceptional features are integrated into the new options being considered. Also many new spin-off products can be created from the rejected options. Establishment of a database system such that on specifying the Vehicle

series and part name to be designed, other options of the same part used in the same series are showcased so that they can be taken into consideration for commonization. Empowerment of CFT members 36

Employees at lower level in the enterprises consider their relationship with management to be similar to a parent child relation ship. This atmosphere is exemplified with premeeting for high levels events, approvals for every thing from derive evaluation to management speaking for the work force on issues in their department. The current causes either server frustration for employees that are driven to complete tasks in a timely manner withdrawal for the scene allowing the management to do the work. Management must not interfere with their employees work much less take over the tasks rather they should act like teachers and guide the employee towards optimum results. Cross functional teams It is well known that throughout the enterprise that cross functional teams are required to exchange information and negotiate trade offs although the quality of interactions are simply not effective. CFT must be embraced throughout the enterprise and contain real interactive data and communication rather than a check box verification of weather the team is conducting recurring meetings on a calendar. Also when ever possible co location of the team member is preferred. Japanese companies use an obeya (large room) that utilizes a large space with a cross functional team working in a continuous session rather than weekly sessions. They are able to shorten the new product development cycle by having constant communication and quick feed back resulting in achievement of optimum results.

Response to waste
There are frequently new process, proposals, formats and meetings that are implemented into daily routines in product development. Many of these new items cause work load to be increased due to the time required to complete. Often , the new items are a duplication or unnecessary expansion of parallel work or meeting s although, for many reasons, the new items are not challenged on creating more waste in the system. Employees either work more hours to include item in their routine ignore it or weakly support the item until it losses momentum and eventually break down. This culture response must be 37

reversed in order to introduce a lean environment. New tasks or meetings that are waste full must be dealt with immediately in a respect full manner.

Bibliography

Philip kotler www.lean.org www.wikipidea.org www.tatamotors.com 38

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