Co., Inc., USA. Tata Motors is the largest manufacturer of commercial vehicles in India, and Cummins Engine Co. is the largest 200+ HP diesel engine manufacturer in the world. The Joint Venture was incorporated in October 1993 and commercial production commenced on January 1, 1996. The vision of TCL is to be widely acknowledged and bench-marked as one of the best companies in the world. The company, thus, abides by the following core values: – Care for customers
Obsession for quality
Care deeply about people
Do what’s right and not what’s convenient
Guarantee product leadership
Responsible citizenship
Relentless improvement
TCL is a QS 9000 company. TCL Jamshedpur boasts of state-of-the-art, fully air-conditioned diesel engine plant, with a computerized Building Management System for safety and energy conservation. The plant has five major components manufacturing lines for Cylinder Block, Cylinder Head, Connecting Rod, Crankshaft & Camshaft, with the best measuring and gauging instruments to assure Consistent Quality. TCL has very strong systems and IT infrastructure for controlling and facilitating its operations. To further increase overall efficiency and visibility of information, Oracle Applications and a web-based Supply Chain Management System have been implemented in June 2000. Products
The low emission Diesel Engines manufactured by Tata Cummins are for use in a new generation of Tata Motors Ltd’s Medium and Heavy Commercial Vehicles. The engines conform to EURO-I, EURO-II & EURO-III standards for emissions. The 78 to 235 Horsepower engines have a high power to weight ratio and will enable Tata Motors Ltd. access new markets worldwide with its advantage of emissions, power, oil consumption and durability.
The Business plan on Status Quo Awc Company System
Overview regarding the current situation of AWC Inc. The company that will be analyzed in this report is that of AWC Inc. AWC Inc. , is an aluminum manufacturing company located in Southwestern Ontario. The company has been around since 1950, and was founded by Mr. Jim MacDonald, father of the current president Mr. Alex MacDonald. AWC specializes in the fabrication of aluminum windows, doors, ...
Plant
Tata Cummins has a modern manufacturing facility located adjacent to Tata Motors Ltd., designed by Kevin Roche, John Dinkeloo Associates of USA and C. P. Kukreja Associates of Delhi. The unique plant comprises a fully air-conditioned 182 x 186 m building with pre-cast concrete coffer roofing and 15 x 15 m bays.
The North and South walls are of glazed curtain glass. Features such as a PLC controlled Fire Detection / Suppression System, Skylights and Building Management System ensures high levels of Safety and Energy efficiency.
Organizational Strategy
At Tata Cummins, the organizational strategy is designed by the leadership team which includes the top management and the department heads. The department goals are then formulated in accordance with the organizational goals. These goals are reflected in a document called ‘Goal-Tree’. The tree also contains the action plan, the schedule for achieving the goals, and the persons responsible for achieving them.
As per the Goal-Tree, the three organizational goals for 2005 are: – Grow Sales to 853 crores
Improve PBIT by 10% over last year and achieve 25% ROANA Achieve and Sustain the respect of all Stake Holders
The organizational goals are broken down to the strategies. The initiatives for implementing the strategies are then identified. The responsibility for implementing these initiatives is then assigned to respective departments. Further, the tentative deadlines are also reflected. The targets are reviewed quarterly.
Questions
1 Do the core values, really influence and have a impact on organizational development ?Explain. 2 Is organizational development depended internally on employees and externally influenced by customers? Discuss
Case -4 (20 Marks)
Benchmarking Performance
The Research paper on Relationship between organizational culture and performance
The topic of the link between organizational culture and performance have drawn considerable interest from both academics and practitioners because this theme can help managers design suitable strategies and goals to increase level of performance as well as providing competitive advantage to firms. Among numerous studies discussing about this subject, I found two journals that contains valuable ...
Key performance indicators (KPIs) are the metrics deemed essential to understanding operational health. Measuring performance allows an organization to objectively determine what is working and what is not. In addition, by identifying successes, managers can reward and learn from best practices. “Measurement has the power to focus attention on desired behavior and results,” said Gardner. “People will pay attention when they know their job is being measured, especially if the measurement is linked to compensation.” When targets are set using validated, normalized data, measurement will support a means to determine operational improvement. Of course, it is critical to tie process improvement to measures that matter to an organization. In doing so, measures can provide: Feedback to guide change,
Assessment and baseline information,
A compelling business case,
A diagnostic tool to identify areas for improvement and set priorities, and A basis for communication (using a consistent definition).
Most measurement occurs at the process level, where the transformation from input (resources applied) to output (goods and services) takes place. The four main categories of metrics to assess performance at the process level are:
Cost effectiveness (e.g., $ 6.22 per invoice),
staff productivity (e.g., 93 invoices processed per FTE), Process efficiency (e.g., 11.2 percent error rate), and
Cycle time (e.g., processing time of 3.8 days).
Cost Effectiveness
Cost effectiveness measures tell how well companies manage cost. Normalized data usually include cost per unit, cost as a percentage of revenue, cost as a percentage of total budget, and actual costs versus budgeted costs. Supporting indicators include cost components as a percentage of total and disaggregated cost per unit. Examples of measures follow:
The Business plan on Performance Measurement
Huawei, a telecommunication equipment provider has consolidated its advantaged position in Telecom Networks, and continued to create value for customer and fulfilled customer needs through its products and solutions. Even with soft economy condition in 2010, Huawei still manage to achieve sales revenue of “CNY 185. 2 billion, a year-on-year increase of 24. 2%. ”1 Besides contribution from its ...
Customer service/call centers
o Cost per call (or cost per minute)
o Cost per reported complaint
Finance and accounting
o Cost per invoice
o Cost per remittance
Human resources
o Cost per recruit
o Benefits administration cost per employee
Staff Productivity
Measuring staff productivity provides insights into how much output each FTE has produced. KPIs include units of output (e.g., invoices and purchase orders) per FTE and workload (e.g., customers and general ledger) per FTE. Supporting indicators can focus on factors influencing staff productivity such as hours of training per FTE and employee tenure. Examples of measures follow: Customer service/call centers
o Calls per representative
o Resolved complaints per FTE
Finance and accounting
o Invoices processed per accounts payable FTE
o Remittances processed per accounts receivable FTE
Human resources
o Total organization FTE per HR FTE
o Requisitions per recruiter
Questions
1) Measurement has the power to focus attention on desired behavior and results,” How it leads to organizational development?
2) Discuss benchmarking techniques, are really helpful for succeeding in I today’s scenario