Introduction Tata Motors Limited is an Indian multinational automotive corporation headquartered in Mumbai, India. It is the eighteenth largest motor vehicle manufacturing company in the world by volume. Part of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive Company). Its products include passenger cars, trucks, vans and coaches. What are Business Excellence Models and why are they required?Business excellence is the systematic use of quality management principles and tools in business management, with the goal of improving performance based on the principles of customer focus, stakeholder value, and process management.
Key practices in business excellence applied across functional areas in an enterprise include continuous and breakthrough improvement, preventative management and management by facts. Some of the tools used are the balanced scorecard, Lean, the Six Sigma statistical tools, process management, and project management.Business Excellence Models are models which are developed on the above philosophy. Generally, it is a national/international body which formulates these models for widespread adoption of the concepts of business excellence, which ultimately leads to improved national economic performance. What is Tata Business Excellence Model (TBEM)? The TBEM model is based on the Malcolm Baldridge National Quality Award for business excellence and principles of Balanced Score Card. It contains elements that enable companies following its directives, to capture the best of global business processes and practices.
The model helps the companies to learn the ability to evolve and stay in step with ever-changing business performance parameters. The TBEM matrix is used for the organisational self-assessment of Tata companies, recognition and awards, and for providing feedback to applicants. It helps improve business excellence practices, capabilities and results. It facilitates communication with a common language of excellence across all Tata companies and the sharing of best practices among them.
It serves as a working tool for understanding and managing performance, for providing planning guidance, and for identifying learning opportunities.The TBEM methodology comprises a set of questions that applicant Tata companies have to answer. Its main objectives are to enhance value for all stakeholders and contribute to marketplace success; maximise enterprise-wide effectiveness and capabilities; and deliver organisational and personal learning. Figure 1: TBEM Core Values The core values and concepts of TBEM are embodied in seven categories as shown in the diagram below. The key areas of business performance as per TBEM are shown in the diagram below: Figure 2: TBEM Key Performance Indicators TBEM ApplicationSoon after the incorporation of TBEM model across the Tata Group, Tata Motors management started giving prominence to the model. There has been significant improvement in quality assurance and maintenance in Tata Motors during the last few years.
The passenger car unit won the Serious Adoption Award in 2004 for a high score in its first year of adopting TBEM. This year, it has crossed the 500-point mark to get the Active Promotion Award. The steps in achieving this alignment between Tata Motors management with the TBEM are as follows: * Firstly, they benchmarked their practises with leading car makers of the world. Then they launched a widespread interactive communication programme to disseminate the mechanics of TBEM among employees, and get a buy-in from all levels in the company. * They encouraged people inside the company to become internal as well as external assessors.
* It was followed by a rigorous process mapping exercise. * Then, steps were taken to increase the visibility of the processes which already existed but were invisible. * They increased employee awareness and brought initiatives like cost reduction came under the TBEM umbrella. Next in line was the arrangement of a two-day strategy workshop for the senior management, with inputs from a Tata Quality Management Services (TQMS) team and Group HR head Satish Pradhan, helped chart a broad strategic direction. * They also brought in Nigel Penny, a balanced scorecard expert in the Tata Strategic Management Group. * They refined strategy into a more accessible form and adjusted it according to the traditional four perspectives of the balanced scorecard.
* Strategic objectives were individually defined for each division and department, with specific initiatives and measures. They provided the assessors with exposure to processes and practices in other group companies. The exchange of news and views resulted in people building informal circles across companies and employees found value in these relationships. * The management adopted newer and better methods for demonstration of necessity for global benchmarking and its mechanics like showing a film on the Mercedes Benz factory and the practices it followed.
* In order to sharpen customer focus, the management strengthened market mechanism to track the overall customer satisfaction index. They started using these levels of overall customer satisfaction and initial product quality as critical success factors. The Indica is among the top three selling models. The Indigo range tops the entry mid-size car segment in the Indian market today; proof positive of its successful migration on the road to excellence.
* Then, to further enhance their capabilities and excellence Tata Motors started expanding its international presence. Conclusion There is no doubt in the fact that Tata Motors has adopted the Tata Business Excellence Model (TBEM) to ingrain innovation across all business processes.Following outcomes were the results of application of TBEM guidelines and processes: * Development of sustainable competitive advantage * Deployment of IT system across the value chain * Institutionalization of a Stage Gate process to develop right products * Implementation of a collaborative product development approach utilizing the capabilities of suppliers, design houses, subsidiaries and associate companies specializing in different verticals * Adoption of people driven innovation Identification and nourishment of right talent * Establishment of an amalgamated Global – local brand There can be no denial of the fact that the overall quality aspect of Tata Motors has increased by leaps and bounds after the application of the TBEM model. But still it has to go a long way if it wants to sustain and survive in the international market as a recognized global player.
And TBEM with its own evolution and development will definitely help the company to achieve that status.
