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15th August 2013, 15:34 | #1 | |
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| Independence Day Special: India (Tata Motors) builds a Truck Hello Team! We are all familiar with the formidable R&D capabilities of Tata Motors (“TM”). However, this capability did not result from any accident but was the outcome of a deliberate policy pursued by the Company’s visionary founders JRD Tata and Sumant Moolgaonkar. While TM’s contemporaries like Hindustan Motors (“HM”) and Premier Automobiles Ltd. (“PAL”) were content with reproducing their respective foreign collaborators’ models year after year without making any design change, TM made significant investments in training its engineers and in setting up an in-house R&D centre, first at Jamshedpur and then in Pune. As a result, TM was able to make significant changes and improvements in the foreign collaborator’s product that it was license manufacturing. So serious were TM’s R&D efforts that when the Company’s 15-year technical collaboration agreement with Daimler Benz came to an end in 1969, no need was felt to extend it further. The Company had acquired the ability to not only manufacture trucks locally but also to develop new products on its own, with only minimal foreign assistance in specialist areas. This aspect of Tata Motors clearly distinguishes it from other Indian auto manufacturers of its time. Today, it is heartening to see other Indian auto companies also undertake R&D activity. However, this was not the case in the 1960s, 70s and 80s. It would have shocked and surprised no one if TM had gone the way of HM and PAL. Luckily for India, it didn’t. On this Independence Day, I’m happy to share with you an eye-opening article about Tata Motors’ collaboration with Daimler Benz. First published in the 1970s in “New Scientist”, a popular international science magazine, the article provides valuable insights into the process of technology transfer from Daimler Benz to Tata Motors that took place in the 1960s. The article was republished in 1980 in Tata Motors’ in-house publication “TELCO Dealers News” (Vol. 3 No.1 January 1980). Not accessible on the net, I’m reproducing it here. About the author: Joseph Hanlon (born 1941) is a social scientist and Senior Lecturer in Development Policy and Practice at the Open University Milton Keynes, United Kingdom. Born in the USA, he moved to Britain in 1971. Hanlon has a bachelor's degree from MIT and a Ph.D. in high-energy physics from Tufts University. Before moving to Mozambique and specializing in the problems of developing countries, he was an editor of Computerworld and technology policy editor of New Scientist. Happy Independence Day to you all! Quote:
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15th August 2013, 17:44 | #2 |
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| re: Independence Day Special: India (Tata Motors) builds a Truck Nice article. Having worked in the company, I met many of the pioneers and senior leaders who were team members in this journey. Though the R&D set up earlier consisted of really great minds, they were highly motivated people having the vision to make India self sufficient. Their aspirations and Tatas goals coincided making the best impact in research. In the near-past, all I saw in the company was high dependence on foreign technology, huge involvement of foreign collaborators and preference to a foreign company. Yes, globalisation has brought many benefits for the customer but the ethos of having one of the best R&D in India has been lost. |
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15th August 2013, 18:28 | #3 |
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| re: Independence Day Special: India (Tata Motors) builds a Truck
Rightly said, despite having branched out into pretty much the entire spectrum of automotive products over the last couple of decades, they havnt strengthened their R&D enough. ERC is now struggling to keep new products rolling out. A few good products though still trickle in, like the Prima truck range. |
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16th August 2013, 10:45 | #4 |
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| re: Independence Day Special: India (Tata Motors) builds a Truck In 1972 I had worked for 2 months at Telco Pune as a summer trainees from IIT Kharagpur. The factory was not in full production. It was making aggregates (if that is the word), i.e. components like the rear axle tubing etc. Some of the things I found amazing was : - When I went to the welding shop I was given a welding machine and a cupboard full of welding electrodes. I was told to keep on welding until I could make a perfect bead 12 inches long. At IIT KGP we would never get more than 2 electrodes to do welding, and here was TELCO giving me, an outsider, all the electrodes I needed to use until I was perfect. - TELCO was making transfer lines for its own use. These are long lines of machines along which a component travels. At each machine (station) one or more operations (drilling, milling etc) are carried out. TELCO was actually making these complex production equipment in-house, and not simply buying them from somewhere. - The workers in the factory were all educated. I saw one worker reading a James Hadley Chase book during lunch. - An engineering trainee was given the task of making a 50 cc 4 stroke engine all by himself, from design to production of parts to assembly, and he would pass only if the engine performed to specifications when run on a test-bed (dynamometer). At IIT we were only taught the theory of a 4 stroke engine, nothing of the design and certainly nothing whatsoever as to how to make the castings, forgings etc on our own. In short, the culture of TELCO was so very different from all the other manufacturing companies, such as Hawkins Cookers (where I worked for a year after graduation) where the motto was : just produce the stuff - forget about doing any engineering or any changes in the design. |
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16th August 2013, 11:07 | #5 | |
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| re: Independence Day Special: India (Tata Motors) builds a Truck Quote:
During the couple of months of internship, all the interns were encouraged to play around, to learn and to question everything that we saw. The interns ended up costing the company a loss of a few lakh rupees. Unfortunately, both the institutions seem to have fallen a bit behind on the progress curve. Hope in the near future, things improve for the better. | |
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16th August 2013, 17:42 | #6 | |||||||
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| re: Independence Day Special: India (Tata Motors) builds a Truck Quote:
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For the LCV project, TM was told "We have already given licenses to 4 companies to import LCV technology from Japan. It will involve considerable outflow of foreign exchange and so we can't give permission to yet another manufacturer." Tata then decided to go on its own, launched the "Project Jupiter" and created the 407 from scratch in a record 18 months! For the car project too, Tata originally wanted to make 40,000 Honda Accords annually. It had even given an undertaking to export 50% of the production. Yet, the Rajiv Gandhi govt. declined permission. Those were the license-permit raj days! Quote:
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Let's hope things improve. Last edited by directinjection : 16th August 2013 at 17:48. | |||||||
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16th August 2013, 22:10 | #7 |
Senior - BHPian | re: Independence Day Special: India (Tata Motors) builds a Truck Thanks for sharing the article! The world recognizes them as 'lorries' and have lots of fond memories. A great company having wonderful resources is a pleasure to work for! I hope the current business scenario makes a positive rebound with quality driven products coming out from TELCO. |
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19th August 2013, 13:40 | #8 |
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| Re: Independence Day Special: India (Tata Motors) builds a Truck Even in our MBA, one core subject we studied was Management of Technology and Innovation for Competetive Advantage. The subject taught us now, in 2012-13, what Tata did during that time and how it is important for all developing countries to gain as much technological self reliance as possible. This is a very good book which was our main text for how technology management is important and how ToT etc is and shouldbe done. |
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19th August 2013, 21:32 | #9 |
BHPian | Re: Independence Day Special: India (Tata Motors) builds a Truck Nice thread OP and some good comments there too. Having worked at the ERC in Poona, I think there are several things that need improving. When I joined I thought I'd stay for a long time since this was probably the best company I could work for in the automotive sector after graduation. However, things changed over the period of 2 years that I went from a GET to full-time engineer. (a) There is huge shortage of quality engineers. And let me not confuse this with quantity, because India seems to churn these out like an assembly line. But while there were some intelligent and dedicated people, they were stymied at every opportunity to do something innovative or path-breaking just because counterparts couldn't fathom doing it in an untested way. (b) Middle management sucks at TML. There is a huge core of people that are plain incompetent or otherwise good engineers and horrid managers. They have literally sat there and done nothing after the Gen 1 Indica was rolled out. If V Sumantran hadn't come in and started the 3 big projects (Indica 2nd gen, Nano & Safari), they'd have been still selling the first gen people's car after 20 years. After he left, there's been really nothing new in the pipeline. Managers need to be car people who have a passion for engineering rather than politics. (c) The politics. Ofcourse this is something experienced at every company in the world and least of all at Tatas where people are very good at heart and values in general. But incompetency breeds defensiveness and complacency in those who're just not qualified to lead teams or pursue big projects. There is a whole line dividing the local ghaatis from the TamBrams (forget the minority who are neither) everywhere within groups to the cafeteria in the ERC and the politics ladder is pretty much aligned along two sides of that line. This needs to change. You can't have one group undermining good managers simply because he may belong in the other group by birth/race. (d) Cost-cutting and shady supplier management have worked to reduce quality and increase warranty costs, leading to fire-fighting mode in the ERC more than R&D. If engineers are focused on continuous improvement of current product to the disadvantage of working on pipeline projects then no lessons learned will be transferred to the next generation of product. As an example - a component developed by engineers that would not only have cut packaging space in the engine bay, but also provided greater power and reduced warranties was shot down by the baniya mentality that couldn't accept a ₹15 increase in cost of sourcing. Needless to say they were spending ₹4000 per car on warranties in an international market soon after. (e) Reliance on consultants. While McKinsey are the favourite (by far) for the Tata Group, the company spent millions on them for some fancy power-point slides that helped in no way and only caused heartburn between departments. Consultants shouldn't be folks who know nothing about the auto industry, but are there only because they have MBA degrees. Those degrees are just as bad as Indian engineering degrees if they're not solving the problems. I saw the same presentations (called 'solutions') given to 3 different departments - ERC, TS & PCBU - for three completely different project problems. And ofcourse these guys only give you the paperbacks without implementation. So they were useless because managers felt they were a collection of statistics and opinion polls (which they'd been interviewed for), but not a green light to actually do what they'd all felt necessary in those interviews. There was no order to do anything based on those fancy recommendations. (f) Finally, there needs to be a car guy heading the company. RT was great because he had a passion for the company (his favourite) but a lack of manufacturing specialists or automotive specialists is hampering the company right now. We can't rely on marketing alone to get us sales numbers - we're going to need product! |
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21st August 2013, 18:38 | #10 |
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| Re: Independence Day Special: India (Tata Motors) builds a Truck Sorry for a I largely agree with most of what you have said. On the above point I would say, that there is the possibility of hiring good engineers in India. The IITs and NITs do churn out pretty good engineers, many of whom are passionate about automobiles. But Tata Motors is just not able to retain any of them for a long enough period of time. And this is not just because of pure salary reasons either. The various problems that you outlined frustrate many of the people who join. I can tell you of the 40odd people who had joined along with me a few years back less than 25% is now still with them. |
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22nd August 2013, 05:43 | #11 | |
BHPian | Re: Independence Day Special: India (Tata Motors) builds a Truck Quote:
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22nd August 2013, 13:58 | #12 |
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| Designing, manufacturing and testing your own engine!!! Cannot even imagine a fresh graduate being given a welding machine in present day, leave alone designing an engine. Those were really the golden days of engineering in India. As mentioned by Activ8 - if this is the situation in the top most indigenous manufacturer in the country, imagine the plight of people like me who joined smaller companies. All we got in the name of induction was hours and hours of talks by veterans and some managerial training programmes. We get fancy designations thanks to our fancy degrees and we get lost in a complex web of MS excel, powerpoint and outlook in the name of work. Thanks to my department of choice which is vehicle testing, I get the chance to get my hands dirty on a daily basis. The rest of the guys who joined with me have more or less been stuck to the computer screen. I understand that the auto industry today is very different compared to the 1970s but the engineering basics will always remain the same and that what is being sorely missed by engineers like me today. In all the complex activities that are involved in the automotive design process today, we only get a very small piece of the action and most of the time it is reserved to virtual work such CAD or CAE. The only way us engineers get to experience a complete vehicle engineering exercise today is through student competitions such as BAJA/ FSAE which luckily I got to be a part of. Probably the reason why I currently feel that I have learnt a lot more in those 6 months than I have in the past one year in the company. It is very easy to lose the drive to really do something worthwhile as in something that a bhpian would expect from their vehicle. You would be surprised to find the number of people who have simply stumbled into the industry and consider an automobile to be just another machine, that too in R&D. Not to insult any one but the best example is our own bhpian going to work for an altogether different industry after his two months at TATA. I am sure he might have had his own obligations but I just cant stop thinking about how much value he would have added, had he been there. This more or less holds good even to this day. I dream of the day when auto enthisiasts find a way to force themselves into the industry, be it in managerial, technical, sales, marketing or even simply the average service centers. It makes a huge to difference in any activity when you look at it from a petrolhead's perspective. With the way that Tbhp has influenced buying decisions with unbiased reviews and opinions has made the whole industry situp and take notice of this motley crowd. I sincerely wish that the day is not far away when recruiting decisions are swung towards hiring more enthusiast crowd and young graduates proudly mention on their resumes that they are a part of teambhp(I do that). |
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22nd August 2013, 15:53 | #13 | |
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| Re: Independence Day Special: India (Tata Motors) builds a Truck Quote:
Can't agree more! Working in a similar automobile company myself! Anyways, the automotive world and the world in general is an average place - and too much passion can also be dangerous. Imagine the companies that you would associate with as having maximum passion and passionate car people - Lamborghini (styling with mad performance), Citroen (eccenticity / avant garde engineering), Lotus (light weight engg / performance), Aston Martin(styling / ultra premium-ness)...almost all been to the brink of bankruptcy and have had multiple owners! Compare that with the Toyotas or Hyundais of the world - the so called dominant automobile companies, they do the same boring stuff day in and out, be it styling or engineering, these vehicles mostly lack soul, but they will definitely tick off most boxes on the "McKinsey list"! It is very rare to see an automotive equivalent of Apple where Steve Job's passion and business acumen could further the field and make huge profits at the same time. The closest auto company would be a Ferrari or BMW! So like always, "balance" - that's the word! After all, how many Bob Lutz can we find? Probably the best car managers now - Allan Mulally and Carlos Ghosn (remember him almost throwing up after a GTR - ride?) aren't car guys, but they are hard-nosed number crunching go-getters with good decision making skills. TATA needs them, and needs them fast, and so do a few other Indian companies. Strangely enough, all that TATA needs to do is to look at what JLR is doing right, and its doing it right under TATA's nose! Disclaimer: Despite not being a car guy, Carlos Ghosn was the champion of the GTR development. He just knows to smell a good investment! And of course, behind every Mulally & Ghosn, there are multitudes of car guys waiting for the "GO!" order. | |
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22nd August 2013, 16:58 | #14 |
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| Re: Independence Day Special: India (Tata Motors) builds a Truck On the same note, I highly recommend the BBC video - "Das Auto: the Germans, their cars and us", a brilliant take on the state of the present British car industry. Its a stark contrast to the last 10 minutes of the last episode of Top Gear season 20. |
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22nd August 2013, 19:25 | #15 |
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| Good to read the article about tata motors and how they managed to be one of the leading commercial vehicle manufacturer world over. It is bit surprising that tata motors have never been able to achieve similar success in passanger car segment. Is it because of higher focus on commercial vehicles or high competition or something else? When tata motors can manufacture good trucks and provide after sales service why similar rigour is missing in passenger car segment. |
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