Business Analytics at TVS Motors

Agenda
Group introduction Why BI BI journey at TVS Motors

Group profile
TVS Motor Company
3 manufacturing units One vehicle rolled-out every 10 seconds

PT TVS Motor Company - Indonesia

1.5 lakh vehicle capacity In-house designed

Sundaram -Clayton
Three manufacturing Units 8 warehouses in USA and Europe

Wabco TVS
Three manufacturing Units

Group profile
Harita Seating Systems
Seats for Two-wheelers to Trains 4 manufacturing units

Sundaram Auto Components

High precision Plastic and Rubber components 5 manufacturing units

Harita NTI
Bio degradable plastics, Petroleum from plastic wastes Corrosive preventive applications

Products-Motorcycle
Sold 7 million till March 2010

TVS JIVE TVS StaR City

TVS StaR Sport

TVS Flame

TVS Apache RTR

5

Products-Scooter
Sold 2.3 million till March 2010

TVS Wego TVS Wego

TVS Scooty Pep+

TVS Scooty Streak

Products Mopeds
Sold 6.2 million till March 2009

TVS XL SUPER

TVS XL SUPER HD

Evolution of IT in TVS Motor

Upgrade to ECC 6.0 Business benefit - 6 times of IT establishment cost Enterprise portal Web 2.0
Web 2.0 PMS Digitized dashboard

PLM SAP EP

2008-10

XI, SOLMAN, Sales on SMS SAP BW / HR PAYROLL SAP in group companies DMS/CRM

2007

2006 2005

2004

Intranet SAP R3

2003

2002

2001

TVS Motors BI Journey

ERP
Year - 2001 All modules Over 600 + users

CRM
Year - 2004 ERP for Dealers Over 700 + implementations

BI
Year-2004 SAP MS

Top 3 Areas BI Usage

Marketing
Customer buying behavior Profiling customer

Sales

Planning Supply chain visibility

Manufacturing

Project Planning- New Products Operations Monitoring

Simplicity is height of Sophistication

Browser

Mobile

Touch

No training required for ATM and e-mails

Success of BI deployment
Simple

Flexible Access anywhere/anytime

Critical Success Factors

Speed Look and feel Ease of Use Insights

What is Business Intelligence ?

People - Passive information receiver to proactive information seekers and IT from transaction automation tool to IT as a Transformation Platform for Business Innovation and Best in Class Operational Efficiency

Business Intelligence is an
Analytical tool
Reporting tool A Decision support tool A common platform and not restricted to any particular application

Example : Sales

NEED FOR BI
SAP data Complex reporting req Dealership Data from dealers CRM info Dashboards for each user. Avoid person dependent Reporting

Functionalities reqd. in BI
Reporting Broadcasting Analytics Alerts Spend Analysis

BI Journey at TVSM
Implemented BIW 3.0 in 2004
Sales and Production modules implemented Solution not user friendly and not used widely

BI Journey at TVSM
Upgrade to BI.7.0 in 2007
SAP- Sales , Production Non SAP DMS(Oracle) and MSSQL data integration CRM Data BeX Reports developed

BI Journey cont..
Adoption of Web Application Designer to make reports more user friendly BI analytics Clustering of Customer data to understanding the customer usage pattern.

BI Journey Cont..
Implementation of Enterprise Portal

Personalized dashboard for All Employees

Completed for sales staff

How BI works ??
Data captured, compiled and stored in all the above mentioned various sources are
Integrated Centrally stored Analyzed Provides output in the required format

For Whom BI will be useful ?

For Sr. Managers (Macro level reports) For Business Managers and Decision makers (Micro level and Ad-hoc reports)

When we need BI ?
One cant predict the need any time for any informed business decision

Where the BI can be accessed ?

It can be used thro Internet..

At any time At any where At any place

Advantages of BI
Data access at any place

Updated and accurate data

Graphical view of information Trend analysis with colour codification Direct export to excel

Reduce dependency on paper reports

Easy for transmission thro mail Centralized data storage

Understanding Customer

Customer

Type of customer

How he buys

Gender

Income

Profession

Trade-in

Hypothecation

Exchange vehicle analysis DMS Data

HP Company Analysis DMS data

Clustering of Customer data

Clustering of Customer data

Sales Performance
Sales

Past Trend

Future Planning

Achievement

Growth

SCM visibility

Quarterly planning

Employee Personalized Portal

Vehicle Sales Dashboard

Top 20 dealers Bottom 20 Dealers Model - wise sales Zero Billing dealers

Tracking stock at Dealerships

Opening Stock Plan Billing

Retails
Closing stock at dealer YTD Billing/Retails

Performance and growth dashboard

Month on Month sales dashboards

Planning based on sales trend

Sales and growth indicators

BI in Manufacturing
Manufacturing

Inventory

Project Planning

Red,Grey, Green inventory

Vendor stock visibility

State of Build

WBS tracking

PRODUCTION BY MODEL REPORT

INVENTORY ANALYSIS REPORT - Month wise

Inventory Not in BOM and No plan Excess to the maximum Norm With in Maximum Norm

INVENTORY ANALYSIS REPORT Week wise

Inventory Not in BOM and No plan Excess to the maximum Norm With in Maximum Norm

Inventory dashboard

Business Objectives: Solution

- To reduce inventory by Rs.100

Key Benefits
- Inventory reduced by Rs.100 crores - Better inventory maintenance

crores in 4 months - To improve free cash flow

- Classification of inventory as

Business Issues:
- Due to recession, conserving cash very important - Non availability of a dashboard to identify to identify low hanging fruits

follows a. Qty & Value as per norms GREEN b. Qty & value above norms but usable for existing products GREY c. Items not required for the current production plan RED - Dashboard developed in SAP BI with facility to drill down upto part / buyer

47

LINE STOPPAGE REPORT

LINE STOPPAGE REPORT

LINE STOPPAGE REPORT

CUSTOMER COLLECTION REPORT

Customer Collection for the Month of April 2009 for Indonesian Dealers Hierarchy wise

Data acquisition system for Production monitoring

Background:
Manual data recording of
Actions Implemented Digital data collected online from bottleneck machine of the cell and integrated with DAQ software

Benefits

Low cost in house developed software used for data capturing available for analysis and improvement

Manufacturing cells output Delayed availability of production output data for Managers

Accurate hour-wise data

Able to obtain information on

machine utilization Business Objectives:

To leverage IT for live data capturing

Patent filed for DAQ

Further Improvement
directly from bottleneck equipment in Manufacturing line
Capture cell utilization accurately for
Results Achieved
First hour output increased to 90%
100

To provide dash board for Plant managers for real time data monitoring for decision making Future Plans To implement DAQ for Vehicle assembly lines

UOM : %
90
84

capacity decisions
To identify opportunity for output

88 84

90 90

80

improvement

70 '07- '08- Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar '08 '09

On time correction of customer complaints complaints Background:

Customer complaint capturing

Actions Implemented
Implemented alert system thru statistical

Benefits

Model From To % reduction No. of part-complaints identified and resolved 12 12 11 13 10 3

process cycle 60 days

Customer complaint resolution

control limit (Monthly PDCA to Daily PDCA) Implemented real time control system to check for effectiveness of corrective action
Implemented electronic job card based

XL Super XL Super HD Sport StaR City PEP+ Streak

17.5 13.6 5.21 8.15 8.02 5.43

4.1 3.84 1.95 3.41 4 3.8

76.6 71.8 62.6 58.2 50.1 30.0

process cycle 120 days

report to identify nagging complaints

Present Reaction for Customer complaint
0.5
Def./100 Veh.

Earlier Reaction for Customer complaint

0.40

Further Improvement
Daily PDCA to Hourly PDCA (Real

3 months in age trend 0.42 0.45

0.4

time basis) for customer complaints Future Plans

0.3
0.2 0.1 0.16

Business Objectives: Reduce customer complaint resolution time from 120 days to 30 days
Reduce defect level by 70% Reduce warranty cost by 50%

Control limit
Feb-08 Jun-08
Aug-08 Apr-08

Implement horizontal deployment of

0.0
Aug-07
Dec-07 Jun-07

Apr-07

Production month

Oct-07

above system in shop floor for all critical parameters

Digitization of FTA for all solved

problems

Results Achieved

Reliability prediction analysis by using

warranty data
Establish MTTF / MTBF by using

electronic job card

Establish transfer function for critical

performance parameters

TVS-M QAD

Jun-10

Warranty returns 3 months in age

20

Model : XLSuper Series

UOM : Def./100 Veh
3M

18 16
14
13.61

17.22 16.67

18.26

Implemented IT support trigger system

12
Def/100 Veh.

12.34 9.12

10
8

6 4 2
0
Jul-08 Nov-08

5.92 4.67

4.66
3.34

Jul-09

Aug-08

Sep-09

Sep-08

Aug-09

Dec-09

Dec-08

Nov-09

Feb-08

Feb-10

Feb-09

Jan-09

Jun-09

Jan-08

Jun-08

Jan-10

May-08

Production month

May-10

May-09

Mar-08

Mar-09

Mar-10

Jun-10

Apr-08

Apr-10

Apr-09

Oct-09

Oct-08

TVS-M QAD

Jun-10

Warranty returns 5000 Kilometers in age

150

Model : 3Wheeler - 2S
UOM : Def./100 Veh

125

119.15

Implemented IT support trigger system

106.91

5000 Kms

100

97.69 83.59
68.10 49.10

Def/100 Veh.

75

77.51

50

48.41 47.71

46.64 30.07

25

22.51 21.21

0
Dec-08 Jul-09 Sep-09 Nov-09

Dec-09

Feb-09

Aug-09

Feb-10

Jan-09

Jan-10

May-09

Production month

May-10

Mar-09

Mar-10

Jun-10

Jun-09

Apr-10

Apr-09

Oct-09

Project Management
Background: Every year, Around 25 major NPD projects implemented. Approximately 700 engineering change projects implemented Around 2000 improvement projects carried out Around 500 members are involved in NPD projects Most of the projects are delayed due to improper planning Changes to the project plan is cumbersome Project progress tracking is paper based Actions Implemented Implemented SAP project system and cProjects Project templates provided Time logging functionality integrated with project system Tracking Reports developed Alerts developed Training provided to all the members of NPD functions Benefits
Dynamic project management

leading to better control over the project.

Further Improvement
Integration of supplier plans with the

NPD project plans

Make the system user friendly

Future Plans Business Objectives: Provide project management tool to manage multiple projects & resources and integrate functional & supplier plans

Results Achieved
Paper based project management

Portfolio and resource management

Innovation process management

Provide project management dashboard

eliminated Versions & change details available for analysis Tracking of bottleneck activity Alerts to all project members for any pending activity and activities due for the next 6 weeks

State Of Build application

Background: The NPI process has Alpha, Beta & QP stages. Prototype vehicles to be built as per planned State Of Build. Record is useful in analyzing the failure modes during Alpha, Beta and QP. The State Of Build information is not readily available Actions Implemented Dashboard with drill down provided by Collating information from various applications Benefits
-Project team takes timely

decisions on building prototypes and analysis of the failures.

- Provides visibility of progress

status

Further Improvement - Add Quality Status, Ordering status, PPAP status etc. - Have Versions State Of Builds at various stages of NPD

Business Objectives: Provide part development dashboard of status to all project members Capture versions of the State Of Builds at various stages of development

Results Achieved
The State Of Build report made

available to all the project team members

The drill down links provided to

Future Plans Capture the snap shot version of the State Of Build at various points of time during the prototype builds

know the details

Improved productivity

DR workflow
Background: Each project starts with a Product Development Initiation approval There are around 25 major NPDs being initiated on an average. System for Initiating the product development to cater to the above The product initiation process is paper based The comments given in the form of Post-it-stickers often get lost. Cumbersome process to obtain approval Actions Implemented Workflow provided for DR0 approval in the intranet Flexibility built in to accommodate 2W, 3W and ASEAN approval Lead time report for all stages and each product provided The report captures comments from all the members Benefits Facilitate review online / live Elimination of physical movement of paper from desk to desk Transparency of comments & feedback to all stakeholders Timely approval of DR0

Further Improvement
Extend DR0 Approval workflows

for exports and institutional sales requirements

Concept change approval

workflows Business Objectives: Electronic Workflow to obtain comments and approval

Should be able to know the progress Workflows for DR1, DR1A, DR2,

DR3, DR4 and DR5 stage gates Future Plans Results Achieved
-The lead time for product initiation Development of workflows for

status of the approval

DR1 to DR5

approval reduced
- Paper saving

Dashboard in Dealership Management

Exception Broadcasting
De-grown Customers
Top/Bottom Customers Zero Inventory

Zero Sales
Poor Service level

MAP Based Sales Info

All India Data

MAP driven Report

Dealer level sales figures

SALES INFORMATION ON MAP

Zone wise, state wise and dealer wise sales info on MAP

Billing Details output - Area Level / Segment wise Drill down

Billing Details output - Model wise Drill down

BI- PLATFORMS UNDER EVALUATION

BO COGNOS MICROSTRATEGY

SAP ACE 2008

For Implementing SAP PLM Solutions

SAP ACE 2007

For innovative use of SAP Netweaver

Thank You