PUNE, INDIA: With the much-talked talked about Rs 1 lakh car likely to be rolled out by January 2008, Tata Motors has come again in the limelight. Probir Mitra, CIO of Tata Motors spoke to team from CyberMedia News on the various IT implementations and IT spending by the company.

IT-Implementations

CMN:Does your enterprise consider spending money on the latest IT implementations as a burden on your expenditure or do you feel it is an investment and mandatory for any enterprise? Elaborate.
Probir Mitra: It is important to enhance the basic capability of the enterprise and improve the throughput of the business. This increases competitive capability.

CMN: What are the major implementations made over the years? Please specify.
PM: - SAP 3.1 & SAP 4.6c implémentation (Asia's largest Implémentation)
- SAP-SRM  & WM
- SOX-ITGC
- Knowledge Based Engineering (KBE) in Design
- Manufacturing Planning with " Delmia "

CMN: Mention the critical usage of any three of your major IT implementations over the last fiscal and define their benefits?
PM: 1. SAP SRM Implementation: End to end Supply Chain integration of Tata Motors ( from Purchase, Supply, production, payment etc.) by the implementation of SAP-SRM project.
Benefit: mySAP Supplier Relationship Management is a purchasing platform for sustainable savings and value generation through full-cycle supply chain management.
- Reduction in Procurement cycle time
- Improve process by e-procurement
- Real time Supplier integration with business
- Knowledge sharing
 
2. SAP WM Implementation
SAP- Warehouse Management (WM-  with mobile data entry) is combined with SAP RF console technology (through bar codes) to automate all the Warehouse operations of Tata Motors.
Benefit: - Improved throughput at Warehouses by RF enabled processes
- Capability enhancement to handle more parts with same team size
- Real time Inventory tracking
 
3. Knowledge based Engineering Implementation in CAD/CAM 
We have developed " KNEXT" an in house software frame work to develop Knowledge Based Engineering applications. KNEXT have several modules in the areas of body design, chassis design and vehicle performance.
Benefit: - Processes defined on KBE have reduced design Cycle time about 30 percent
-  Designer's knowledge acquired over the years and company best practices are captured and retained.
- Process is defined with KBE,  reduce cycle time and improve adherence to legislations, regulations, best practices.

IT Spend 

CMN: What was the expenditure on Information Technology (IT) systems in 2006-07 (figures) in your organization?
PM: Confidential 

CMN: What will be the expenditure figures for this fiscal year/ What is the growth rate?
PM: Confidential, Growth 30 percent 

CMN: How much budget does your enterprise allocate for IT expenditure each year? What is the expected change with respect to the previous year?
PM: As above 

CMN: What part of IT implementations play a more prominent role -- software or hardware or networking? Why?
PM: This depends on the profile of projects being implemented 

CMN: Name the top 5 IT items that you spent on last year?
PM: Digital Manufacturing
- MES
- ERP Enhancement
- Product Design : Catia upgrade
- CRM 

CMN: Name the top 5 items that you expect to spend on this coming fiscal year?
PM: - Software Licenses
- Hardware
- Cost of Outsourcing contract
-  AMC on Software & Hardware
-  LAN & WAN cost 

CMN: Do you feel that enterprises are spending more on hardware than software? Elaborate.
PM: This depends on the profile of projects being taken up. 

CMN: Do you feel that the amount allocated for IT is sufficient? If yes, why? If not, why not? How much should you be spending?
PM: Sufficiency is a relative issue and needs to be addressed with respect to the objectives on hand. Several IT investment proposals for improvement and additional coverage compete with each other and with Non IT investment proposals as well. This is because any enterprise has a limited investment aptitude at any point of time. The customer demand is generally higher than Its ability to deliver as the allocation budgets. The key therefore is in prioritisation between different proposals for maximizing benefits to the enterprise.  

CMN:  Has the cost of the IT hardware/software been constant or has it been growing? Elaborate on specific hardware / software.
PM: Yes in Engineering Automation, ERP & CRM 

CMN:  Has the prices of the IT products (hardware/software) been on the decline due to the current stronger rupee against the US dollar?
PM: Yes 

CMN: Since the rupee is growing stronger against the dollar, don't you think it is the right time to purchase IT products (both hardware/software)? 
PM: This can be one only of several considerations