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    Calculation of Steel Consumption Per Vehicle at Tata

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    VIbhor Rakshit
    This document analyzes steel consumption and the supply chain between Tata Steel and Tata Motors in India. It finds that [1] steel consumption per vehicle has decreased slightly over time but HR sheet steel still accounts for over 800kg per vehicle, [2] the demand-supply gap for critical steel grades leads to shortages, and [3] both companies' scheduling is defective and safety stock policies are not adhered to. It recommends improving lead times, adopting a new information system, ensuring schedule accuracy, and directly engaging vendors to address these issues.

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    Calculation of Steel Consumption Per Vehicle at Tata

    Uploaded by

    VIbhor Rakshit
    125 views22 pages
    This document analyzes steel consumption and the supply chain between Tata Steel and Tata Motors in India. It finds that [1] steel consumption per vehicle has decreased slightly over time but HR sheet steel still accounts for over 800kg per vehicle, [2] the demand-supply gap for critical steel grades leads to shortages, and [3] both companies' scheduling is defective and safety stock policies are not adhered to. It recommends improving lead times, adopting a new information system, ensuring schedule accuracy, and directly engaging vendors to address these issues.

    Original Description:

    Analyzing supply chain of tata steel

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    This document analyzes steel consumption and the supply chain between Tata Steel and Tata Motors in India. It finds that [1] steel consumption per vehicle has decreased slightly over time but HR sheet steel still accounts for over 800kg per vehicle, [2] the demand-supply gap for critical steel grades leads to shortages, and [3] both companies' scheduling is defective and safety stock policies are not adhered to. It recommends improving lead times, adopting a new information system, ensuring schedule accuracy, and directly engaging vendors to address these issues.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    125 views22 pages

    Calculation of Steel Consumption Per Vehicle at Tata

    Uploaded by

    VIbhor Rakshit
    This document analyzes steel consumption and the supply chain between Tata Steel and Tata Motors in India. It finds that [1] steel consumption per vehicle has decreased slightly over time but HR sheet steel still accounts for over 800kg per vehicle, [2] the demand-supply gap for critical steel grades leads to shortages, and [3] both companies' scheduling is defective and safety stock policies are not adhered to. It recommends improving lead times, adopting a new information system, ensuring schedule accuracy, and directly engaging vendors to address these issues.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 22

    Calculation of steel consumption per

    vehicle at Tata Steel and supply chain


    analysis of vendor ecosystem

    By

    Prashant Mishra
    1302-193
    IMT Ghaziabad
    The context
    Jamshedpur : a manufacturing hub
    Tata steel + Tata Motors- perfect location
    Logistically well connected
    Still poor efficiency in demand fulfillment
    The problem
    Erratic behaviour of supply chain of Tata motors, and tracking of per
    vehicle consumption of critical grades of steel .
    Research Design
    Primary data
    Secondary Data
    Qualitative design
    Questionaire design
    Data collection
    Procedural steps :
    Understanding the manufacturing process flow at Tata Steel.
    Understanding the manufacturing process flow Tata Motors.
    Analyzing the demand demographics of Tata Motors
    Identifying the role of TSPDL.
    Conducting vendor visits and interaction
    Data collection and analysis
    Result generation
    A bit about steel
    HR : Hot rolled
    - thickness of 2- 10 mm
    - poor surface finish
    - good mechanical strength
    CR : Cold rolled
    - Thickness of 0.75 mm to 2 mm
    - good surface finish
    - not so good mechanical strength
    The supply chain flow
    TATA STEEL
    VENDORS
    TSPDL
    TATA MOTORS
    Plan of study
    Study has ben planned in two phases
    1) evaluation of the perception of tata steel among tata motors
    ancillaries and evaluation of problems
    2) Evaluating the steel consumption per grade per vehicle, so as
    to facilitate better understanding of the consumption pattern
    The Findings : Vendors satisfaction
    Vendor satisfaction
    Satisfied Unsatisfied
    Problems faced by ancillaries
    0
    5
    10
    15
    20
    25
    30
    35
    credit limit order quota incorrect schedules unavailiblity transportation packaging
    Problems breakup

    Steel consumption per vehicle breakup
    0
    200
    400
    600
    800
    1000
    1200
    2012-13 2011-12 2010-11 2009-10
    Average Steel Consumption Per Vehicle
    CR Sheet
    HR Sheet
    CR steel consumption per month
    0
    200
    400
    600
    800
    1000
    1200
    1400
    1600
    1800
    D 513 DD 1079 DQ EDD 513 FE 410
    Input weight for CR
    Row Labels Sum of INP WT for CR(mT)
    D 513 466.4633984
    DD 1079 1657.411716
    DQ 118.755
    EDD 513 444.2152209
    FE 410 578.9254902
    Grand Total 3265.770826
    HR steel consumption per month
    0
    200
    400
    600
    800
    1000
    1200
    D513 DD1079 E34 E38 E46 Fe410 Grade A
    Hr grade
    Total
    D513 370.109
    DD1079 1057.585
    E34 250.7443265
    E38 533.557453
    E46 831.3524
    Fe410 677.5870022
    Grade A 64.453
    Grand Total 3785.388182
    Per vehicle breakup
    Average Steel
    Consumption

    FY13-14 FY 12-13 FY 11-12 FY 10-11 FY 09-10
    HR Sheet / Vehicle 825kg 722 kg 717 kg 780 kg 828 kg
    CR Sheet / Vehicle 299kg 226 kg 253 kg 231 kg 242 kg

    Steel consumption gradewise
    44%
    23%
    16%
    3%
    1%
    3%
    9%
    1%
    Steel Consumption
    D513 DD1079 Fe410 Grade A E34 E38 E46 ERW1
    The production quandry
    0
    1000
    2000
    3000
    4000
    5000
    6000
    7000
    8000
    june july august september october november december january february march april may june
    N
    u
    m
    b
    e
    r

    o
    f

    V
    e
    h
    i
    c
    l
    e
    s

    Month

    Tata Motors Production Chart
    Safety stock deficit chart
    0
    500
    1000
    1500
    2000
    2500
    3000
    SS march SS February SS January SS December SS November SS october
    D
    e
    f
    i
    c
    i
    t

    i
    n
    n
    u
    m
    b
    e
    r

    o
    f

    c
    o
    m
    p
    o
    n
    e
    n
    t
    s

    Month
    Safety stock Deficit
    Conclusion
    Demand supply gap for critical grades
    Vendors wrongly influence demand
    Scheduling on both fronts is defective
    No adherence to the safety stock policy
    No information management system for ancillaries
    Unethical logistical practices
    Recmmendations
    Reduce lead time for critical grades
    Adopt appropriate sizing of finished coils.
    Implementation of state of the art information system
    The supply line should be properly maintained.
    They should improve customer relationship.
    Ensuring greater schedule accuracy
    If possible engage the vendors directly
    Investing in safety stock inventory storage capacity

    Thank You !!


    Questions please.

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