Tittle-Tata Nano and the supply chain

PRESENTED BY NITISH KUMAR MBA 3rd Sem

1171270028

Why the price of TATA NANO is LOW?

As Ratan Tata unveiled the Rs 1 lakh[US$ 2500] car, I thought about the process which enabled the Tata Nanoto be designed at this phenomenally low price. It was done by a relentless focus on costs and eliminating waste and redundancy. The secret of designing the Tata Nano is a concept called Target Pricing or Target Costing. Target Pricing process attempts to determine what features and functions the customer wants in a car. This same concept, of relentless focus on costs and scraping the barrel mentality can be applied to supply chains! Reducing supply chain times reduces inventory and increases responsiveness. To eliminate waiting times and delays the complete supply chain process will have to be mapped. For this a lead time map is used. Delays like waiting for loading or unloading and waiting for documents can be minimized. Transit times can be reduced [ not by fast and rash driving ] but by using AC cabins and double-drivers.

Supply Chain Network Design

locating plants

Contract manufacturers

Distribution Centers

warehouses

Customers
It is important because 70% of the cost of a supply chain is fixed at the design stage.

Product Overview
Make Model Body Type Seating Capacity Tata Tata NANO Hatchback 04 (Four)

Number of Doors 4

Fuel Efficiency
City Mileage Fuel Capacity Fuel Type Fuel Grade Fuel Injection 20-25 kmpl 30 litres Petrol (Diesel Version will be later) Multi Point Fuel Injection (MPFI)

Highway Mileage T26 kmpl

Specification
Length Width Height Engine Capacity Power Body Type Emission Norms Safety Norms Versions Gearbox Wheelbase Ground Clearance Kerb Weight 3.1 meters 1.5 meters 1.6 meters All-aluminium, Rear Mounted, Rear Wheel Drive 623cc 33PS Sheet Metal Euro-IV, Bharat Stage-III compliant Frontal Crash Tested Standard, Luxury 4-speed manual; Cable operated 2230mm 180mm ~ 600kg

Speed Colors

Top speed will be 90 Km/hour. Red, Yellow and Silver

TATA NANO loses Customer Support in 2009

The customer Expectation from bottom end are rising In a survey of TNS alto scored 91 points while nano score only 70 points NANO has been facing problem as this car caught fire in 6 cases The customer pay higher than 1 lakh for a car due to safety reason Customer will go for Alto, ZEN estilo or a-star cars While WOLSWOGAN POLO And MSIL swift together became one of the premium choice by Customers

Just to give you a feel of the fall in sales volume, the November dispatches came at less than 10% of what was notched in the month of September at 5520 units. However, the Nano seems to have witnessed a turnaround with its December dispatches coming at a healthy 5784 units, on the back of slew of recent measures aimed at reviving the sagging volumes of the Ratan Tatas dream project car. Further, as the companys new plant at Sanand in Gujarat became operational, the Nanos production scaled new highs and the company added 10 more states to open fresh bookings in November; backed by increased promotional efforts and additional tie-ups with 29 finance institutions to facilitate fast-track loans to borrowers. NANO comes with new features and with more safety with respect to previous versions of it