Tata Auto Plastic Systems and Balanced Score Card

Human Resource Management-Case Study

GROUP NO. 3Abhinit 2010061

Abhra 2010063Anand 2010065

Devasheesh 2010076Gaurav 2010078Kalpak 2010085

Kanuneet 2010086Kaustav 2010087

Lara 2010090Saurabh 2010108

Snehil 2010112Vidhi 2010117

Tata Auto Plastic Systems• Leader in manufacturing and service.

• Subsidiary of Tata group in collaboration with Faurecia Group France and the Foggini Group of Italy.

• Customers include major auto companies such as Ford, Faurecia, MG Rover as well as Tata engineering,Fiat India , General Motors and Bajaj Auto.

• Products include Dash boards, Door pads, Air vents and trims with European styling and finesse.

VALUE CREATION

• Mission: Offer world class interior and exterior products

• Values: Meet customer expectations on quality, cost and delivery

• Vision: Become Tier I supplier in India and Tier II in the global market

• Strategy: Achieve Overall Cost Leadership and Innovate to build design and competencies

MISSIONWhy we exisit

VALUESWhat is important to us

VISIONWhat we want to be

STRATEGYOur game plan

STRATEGY MAPTranslate the strategy

BALANCED SCORECARDMeasure and focus

What value is and How is it created

Balanced sheet - Cost and price – Not value

Balanced Score Card

• It is a tool to align business activities to use the companies strategic theme and monitor performance in different dimensions

• Simplified BSC model has 4 perspectives:– Financial perspective-profitability, growth, debt/equity– Process perspective-efficiency, maintain & utilize assets– Development perspective-Learning and adding new skills– Customer Perspective-customer satisfaction and new

clients

Past Strategy

• More focus on Financial perspective• Objective to increase ROCE beyond WACC• Existing measures did not focus on Learning and

growth, and Customer perspectives• Their strategy used more Lag Indicators than Lead

Indicators• However, their objective was to achieve intangible

benefits• This was a mismatch between the approach and the

goal

Future Strategy

• Future strategy map consisted all the four perspectives, viz. Learning and growth, Internal process, Customer, and Financial

• They used Learning and Growth, and Internal perspectives as the base to achieve objectives in other two perspectives

Learning and Growth perspective

• Create climate for action through alignment and empowerment: – Providing an apt learning environment

• Build competencies: – Developing staff skills

• Integrate IT in all business processes:– Improving technology

• Intrinsic values: – Base

Internal Processes

• Increase efficiency:– Build competencies to integrate components to achieve

module/systems supplies– Upgrade manufacturing processes to achieve customer expectations

on quality levels– Optimized use of assets and build processes to minimize operations

cost• Increase customer satisfaction:

– Upgrade delivery process capability to meet requirements of Indian and Overseas customers in a cost effective manner

– Excel in new CRM– Build partner relationship for technology upgrades and business

expansion

Customer perspective

• More satisfied customer– Full program management at significantly lower

cost and shorter lead times– Provide value for money through low cost

manufacturing, meeting world class quality and delivery expectations

• Increased customer base– Preferred low cost, full service provider of high

value added products and services

Financial perspective

• Improved Profitability– Increase ROCE– Increase customer base, business with existing

customers and export business above required rate of profitability

• Stronger Finance– Maximize asset utilization– Become industry cost leader

TAPS Strategy Map

Providing an apt learning

environment

Developing staff skills

Improving technology

Increase efficiency Increase customer satisfaction

More satisfied customer

Increased customer base

Improved Profitability Stronger Finance

Values

Financial perspective

Customer perspective

Internal process

perspective

Learning and growth perspective

Learning Perspective Internal Perspective

Number of employees whose key performance appraisals are linked to strategic objectives

Capability Index

Empowerment index Part per million customer rejects

Percentage delivery compliance – On time and in full

Reduction in logistics cost compared to standard cost

Overall equipment effectiveness

Energy cost as percentage of sales

Relationship Index

BSC

Financial perspective measures

• Return on Capital Employed• No. of new OEMs• Sales from new OEMs• Sales(turnover) from existing

OEM’s• Sales from new products with

existing OEM’s• Sales from Export business• Asset turnover• Operating cost/sales• Cost reduction achieved over

standard cost by product family

Customer perspective measures

• Value of request for quotes(RFQs) received as full service suppliers(FSS) of modules in this

• Value of orders as FSS• Value of RFQ’s obtained for full

program• Value of orders obtained for

full program• Customer satisfaction index• Number of quality issues

raised in JD power report

BSC

THANK YOU