Tata Auto Plastic Systems (TAPS) Strategy Map

Tarun Yadav
Nahid Siddique

Mayank Gupta

Avijit Choubey

Isha Goyal

Priyadarshini

Amit Dandopath

Indian Business Academy

Wednesday, 26 January 2011 Laxmipura, Thataguni Post
Kanakapura Main Road
Bangalore - 560 062. INDIA
www.ibainternational.org
Tata Auto Plastic Systems Ltd

About Company:
TAPS is the auto component vendor company of the Tata Group. It is one

of 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 of

interior 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: Cost
Leadership and Innovation

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Vision and Mission

Mission:
Exceed the expectations of our customers

Excellence in technology and engineering

Core Values :


♦ Simplicity, Frugality, Integrity, Respect and Harmony



Vision: To evolve globally as a value creator for automotive customers by



specializing in cost cutting through Engineering solutions and Supply

Chain Management

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Tata01/26/11
Auto Plastics Systems (TAPS)BSC
trategy
G5 Map 6
Financial Measures

  Objectives Measures

Finan F1: Increase ROCE Return on capital employed

cial
Persp F2: Increase Customer Base Number of new OEMs
ectiv
e Sales from new OEMs
F3: Increase business with existing customer Sales (turnover) from
existing OEMs
Sales of new products with
existing 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

  Objectives Measures

Custo C1: Preferred low-cost full-service Value of request for quotes (RFQs)
mer supplier of hight value-added received as full-service supplier of
Persp products and services modules of systems
ectiv
e Value of oders as FSS (Full-service
suppliers)

C2: Full program management at
significantly lower cost and shorter
lead times
Value of RFQs obtained for full program
Value of orders obtained for full
program

C3: Provide value for money throught Cutomer satisfactin index

low cost manufacturing that meets
word class quality and delivery Number of quality issues raised in J.D.
expectations power report

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Internal Perspective Measures

  Objectives Measures

Intern P1: Build competency to integrate Capability index

al components to achieve module/supplies
Perspe
ctive P2: Upgrade manufacuring process to Part per million customer rejects
achive customer expectations on quality
levels
P3: Upgrade delivery process capability Percentage delivery compliance on time, in
to meet delivery requirements of Indian full
and overseas customers in a cost Capability index
effective manner Reudction in logistics cost compared to
standard cost
P4: Optimize use of assests and build Overall equipment effectiveness
process to minimize operation cost. Material cost against standard cost
Energy cost as percent of sales
Direct labour cost as percent of sales
P5: Excel in customer relationship Relationship index
management
P6: Build partner relationship to Number of new technologies aquired through
upgrade technology and expand business relationships
Growth in turnover through partner
relationship
P7: Improve capabilities in design Capability index
tooling, testing and project management Year to year reduction in lead time for
product development

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Learning & Growth Perspective Measures

  Objectives Measures

Learn L1: Create climate for Number of employees whose key performance
ing action throught alignment appraisals are linked to strategic objectives
and and empowerment
Growt
h
Persp Empowerment index
ectiv
e Number of Key business Processes empowered to lower
levels

L2: Build competencies Strategic skill coverage ratio

L3: Integrate IT in all Percentage of processes covered by IT
business process
IT effectiveness satisfaction survey

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Strategic Move…….

TAPS’s existing measures had focused narrowly on financial and



short term operational objectives



It’s new strategic measures focused on opportunities for revenue



growth through forging new relationships with customers by not only

excelling at cost, quality, and development and project management,
and enhancing the capabilities of employees, systems, and
organizational alignment process


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RESULTS

TAPS executives are using the Balanced Scorecard to balance



expectations among its various stakeholders



The strategy map and scorecard have brought clarity and



alignment so that the organizations is now focused in key

strategic performance areas


Various initiatives linked to scorecard have become more



focused and have resulted in teams achieving much better results

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EXAMPLES

TAPS industry cost leadership objectives in the financial perspective



helped it identify various measures to control cost, such as the ratio of

operations cost to sales and cost reduction achieved over standard cost


A focused review of the performance on these measures on a monthly



basis has identified areas for improvement.



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 Contd……

Various initiatives such as six sigma projects to reduce power and material


consumption, reduction in material wastage, and improvement in IT system

for better information management, have been undertaken


Apart from the significant tangibles delivered by these initiatives, the focus


has created cost ownership at departmental and functional levels

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Contd...

The objective of building competencies in the learning and growth



perspective led to identifying knowledge and skill gaps in key functional

areas


The company has developed a road map to bridge the gaps

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

 Thank you


Merry Christmas
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