Business Analytics at TVS Motors Agenda Group introduction

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 Sta. R Sport TVS Sta. R City TVS Flame TVS Apache RTR 5

Products-Scooter Sold 2. 3 million till March 2010 TVS Wego TVS Scooty Pep+ TVS Wego TVS Scooty Streak

Products – Mopeds Sold 6. 2 million till March 2009 TVS XL SUPER HD 7

Evolution of IT in TVS Motor • Upgrade to ECC 6. 0 • Business benefit - 6 times of IT establishment cost • Enterprise portal • Web 2. 0 PLM SAP EP XI, SOLMAN, Sales on SMS • SAP BW / HR PAYROLL • SAP in group companies DMS/CRM Intranet SAP R 3 2001 2002 2003 2004 2006 2005 2007 Web 2. 0 PMS Digitized dashboard 2008 -10

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 Sales Manufacturing • Customer buying behavior • Profiling customer • Planning • Supply chain visibility • 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 – Be. X 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 can’t 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 Type of customer Gender Income How he buys Profession Trade-in Hypothecation

Exchange vehicle analysis – DMS Data

HP Company Analysis – DMS data

Clustering of Customer data

Sales Performance Sales Future Planning Past Trend 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 Inventory Red, Grey, Green inventory Vendor stock visibility Project Planning State of Build WBS tracking

N BY MODEL REPORT PRODUCTIO

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

Inventory dashboard Business Objectives: Solution Key Benefits - To reduce inventory by Rs. 100 crores in 4 months - To improve free cash flow - Inventory reduced by Rs. 100 crores - Better inventory maintenance Business Issues: - Due to recession, conserving cash very important - Non availability of a dashboard to identify low hanging fruits - Classification of inventory as 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

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 Manufacturing cells’ output • Delayed availability of production output data for Managers 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 • Accurate hour-wise data available for analysis and improvement • Able to obtain information on machine utilization • Patent filed for DAQ Business Objectives: Further Improvement • To leverage IT for live data capturing directly from bottleneck equipment in Manufacturing line • Capture cell utilization accurately for capacity decisions • To identify opportunity for output improvement Results Achieved First hour output increased to 90% To provide dash board for Plant managers for real time data monitoring for decision making UOM : % Future Plans To implement DAQ for Vehicle assembly lines

On time correction of customer complaints Background: Benefits Actions Implemented • • Customer complaint capturing process cycle 60 days • Customer complaint resolution process cycle 120 days • Implemented alert system thru’ statistical control limit (Monthly PDCA to Daily PDCA) • Implemented real time control system to check for effectiveness of corrective action • Implemented electronic job card based report to identify nagging complaints Present – Reaction for Customer complaint Earlier – Reaction for Customer complaint Further Improvement • Daily PDCA to Hourly PDCA (Real time basis) for customer complaints Future Plans 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 • Implement horizontal deployment of 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

Implemented IT support trigger system

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 c. Projects • 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 • Provide project management dashboard Results Achieved • • Paper based project management 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 • Innovation process management Portfolio and resource management

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 know the details • Improved productivity Future Plans Capture the snap shot version of the State Of Build at various points of time during the prototype builds

DR workflow Background: • Each project starts with a Product Development Initiation approval • There 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 DR 0 approval in the intranet • Flexibility built in to accommodate 2 W, 3 W and ASEAN approval • Lead time report for all stages and each product provided • The report captures comments from all the members • Facilitate review online / live • Elimination of physical movement of paper from desk to desk • Transparency of comments & feedback to all stakeholders • Timely approval of DR 0 Further Improvement – • Extend DR 0 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 status of the approval Benefits • Workflows for DR 1, DR 1 A, DR 2, DR 3, DR 4 and DR 5 stage gates Future Plans Results Achieved – -The lead time for product initiation approval reduced - Paper saving • Development of workflows for DR 1 to DR 5