SUMMER TRAINING PROJECT (SYNOPSIS)

Cost reduction in electrical equipments used

in Tata Motors MUVs (Multi Utility Vehicles)
Undertaken at
Tata Motors,CVBU Plant,Pimpari

Submitted in the partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the Supervision

Internal Guide: Prof. M.K.Gandhi

External Guide: Mr. A.B. Gandhi (Asst. General Manager)

External co-ordinator: Mr. S.R.Wani (Asst. Manager)

Submitted by,
Amit Gaikwad

Indira Institute of Management, Pune

S. No. 85/5 A, New Pune Mumbai Highway,
Near Wakad Police Chowki,
Pune 411 033.
Tel. 020 66759400, 65731315, 65731316
Fax: 020 22934259
Website: www.indiraiimp.edu.in
Objectives of project:

The main objectives of the project are,

To study cost reduction techniques used in Operations/Production.

To find out various areas where production cost can be reduce without

disconcerting quality of product.

To apply cost reduction techniques to reduce production cost.

To increase the profitability of organization.

Need of the project:

There can be following reasons why a company might need to cut costs,

To create additional cash reserves

To reduce price of product or service
To bring expenses in line with revenues
To eliminate unnecessary expenses or wasteful spending
To increase company value
To reduce manufacturing costs to stay competitive
To become more efficient
Steps to be follow during project:
While doing project, the following 3 dimensions of Cost reduction has
to consider,
1. Internally driven:
Keep improving processes
Employee suggestions
2. Externally driven:
Top of the technology and process
3. Competitor driven:
Benchmarking against competitors
Real time data

The steps are,

1. Personally visit to assembly lines i.e. Trim line and Chasis line of all

MUVs of CVBU plant of Tata Motors, Pimpari.

2. List down all electrical equipments used in vehicles.

3. All data collection has to do through

Primary data: Data which is collected on our own is called primary data.

Personal interaction with company guide.

Discussion with other officials.
Through observation at actual working place.
Discussion with workers working at assembly line and at store.
Group discussion with co-trainees.

Secondary data: Already existing data is called secondary data.

Manuals of all vehicles.
Referring various files already made by companies officers.
 4. Present the data in comparative manner according to vehicles.
5. Find out equipments from list which are most costly and also
equipments which have scope to reduce the cost.
6. Do analysis based on comparison, apply cost reduction techniques and
find out cost reduction elements.

Methodology:
Cost reduction can be done through,
1. Reduction
2. Elimination
3. Modification
4. Innovation
Following methods of cost reduction in Operations/Production can be use
during project,
Standardization
Lean manufacturing
Product rationalization
Supply chain management
Eliminating wastages
Negotiation with supplier
Bulk buying from same supplier
Replace equipment with low cost product

Limitations:
There is time limitation to actual implementing the ideas generated
through project. Any small change in product has influence on various
departments from ERC to Supplier. Hence 2-months span is short to imply
cost reduction ideas. This is also a drawback of large scale company.
 But that ideas company can implement in coming days or on their new
products.