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  • Subject area(s): Engineering
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  • Published on: 7th September 2019
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As mentioned above, Tata Motors is using SAP ERP system to streamline the business process of the company. It is understood that Tata Motors itself has several departments that each of them carries out different activities. Thus, different modules of SAP ERP system are being implemented for each departments of Tata Motors.

Firstly, Purchasing and Supply department is using SAP MM module (Material Management). In SAP ERP system, this module is part of the process of Procure to Pay. This process allows Tata Motors to conduct real-time purchasing decisions with higher productivity and greater efficiency. Under the process of Procure to Pay, Tata Motors not only able to realize their purchasing power, but also enforce strategic supplier choices and optimize buying patterns to achieve cost-efficiency. SAP MM module allows Tata Motors to have an integrated solution for streamlined sourcing and contract management such as allows the company to develop a standardized contract-authoring process that meets broad requirements and business needs, and establish and use a contract repository. Besides that, the purchasing process can also be improved by using SAP MM module as the module includes purchasing functionality that can cater to language and localization requirement of Tata Motors. The module also involves spend analysis that helps Tata Motors to understand the spend performance and potential and opportunities for savings (,is_suite_erp-e2e-1359). Tata Motors is also able to plan and keep records of their purchased inventory. The business operations will be more smooth-running as inventory data can be updated in real time and then generate timely reports for middle management to keep track of the inventory information ( Thus, Purchasing and Supply department will be able to check inventory availability, forecast material needs and schedule purchases to keep up with demand (,is_suite_erp-e2e-1359,is_suite_erp-ist-2128).

Programme Planning and Project Management department implements two different modules, which are called SAP PP module (Production Planning) and SAP PS module (Project Systems). SAP PP module is part of the process of Plan to Product. The aim of this process is to enhance the company’s efficiency and transparency for design and assembly. By implementing this module, Tata Motors can maintain their design standards for product quality and communicate design updates and development progress to their partners, while reducing production costs, schedules, and time to market. This is because the module defines design challenges and requirements such as manufacturing concept, plan and calculations (,is_suite_erp-e2e-1364,is_suite_erp-ist-1467). Apart from SAP PP module, SAP PS module involves the activities of conducting projects such as building new plants, organizing trade fair and more. This module allows the department to plan and execute projects after project goals and project activities to be carried out are precisely described and structured ( The module also allows Tata Motors to gain insight into the details of projects such as project scope, cost, time, quality performance. Tools to manage finance and human resources available to the projects are also provided in the module.

Engineering Research Centre use SAP IS module (Specific Industry Solutions). This module helps Tata Motors to gain a competitive advantage by integrating the entire engineering, manufacturing, supply, sales, and service business chain.

Quality Department is utilizing SAP QM module (Quality Management) to manage its business process. SAP QM module is also part of the process of Plan to Product as mentioned previously. The implementation and utilization of SAP QM module allows quality management tasks to be combined with those in other applications, such as production, sales and distribution, materials management and accounting ( The module also provides tight integration of several functionalities, such as material management, plant maintenance, and quality management, thus Tata Motors can gain a total maintenance and quality-management approach (,is_suite_erp-e2e-1366). Components that are involved in this module such as sample management, results recording, defects recording allows Tata Motors to do quality planning, inspection and control.

SAP FI module is being implemented at Finance and IT department of Tata Motors. SAP FI module is part of the process of Core Finance and mainly involves accounts receivables, accounts payables, financial statements, fixed assets, general ledger and more. It allows Tata Motors to centrally track financial accounting data supporting an international framework of multiple companies, languages, currencies, and charts of accounts ( Tata Motors can also utilize this module to collect, assign, and analyse costs by project, order and business process and evaluate the profitability based on markets, channels, products or customer segments. Therefore, Tata Motors will then able to plan for and manage global business performance, profit and growth (,is_suite_erp-e2e-1376).

In addition, Human Resource department is using SAP HR module. SAP HR module is part of the process of Core Human Resources. Generally, SAP HR module can be categorised into workforce process management and talent management. Workforce process management involves employee administration, organizational management, payroll calculation and employee benefit management while talent management involves hiring, career management, employee performance management and compensation management ( SAP HR module helps to prevent data losses and other problems that may happen during the process of consolidating core HR and payroll operations, so that human resources staff can focus on other value-adding activities. This module can also be used to schedule time for payroll, working calendar, shifts and vacation allowances (,is_suite_erp-e2e-1374).

Four systems are being utilized at Strategy department of Tata Motors. They are SAP CO, SAP PM, SAP AM and SAP WF. SAP CO module supports the process works of planning, reporting and monitoring operations of businesses. It involves methods to view and organize costs that are required for financial reporting. Controlling module enables Tata Motors to plan, track, perform and report about costs ( Aside from SAP CO, SAP PM module contains the activities of inspections, preventive maintenance and repair. These includes establish the actual condition of a technical system, maintaining and repairing the technical system to an ideal condition ( Enterprise Asset Management (EAM) supports organizations by efficiently managing the entire lifecycle of physical assets resulting in reduced operating costs, better managed capital expenditures, improved EHS performance, and asset utilization ( SAP WF module enables Tata Motors to manage business processes that are customized to the company and can then be used for auditing and business process compliance such as provide reports on how many times each workflow executed, what was the average execution time, how long did it take people to react to items in their inbox and more (

Both Commercial Vehicle Business Unit and Passenger Vehicle Business Unit are using SAP SD module. This module is part of the process of Order to Cash. This process involves producing sustainable sales and respond to inquiries with timely and accurate pricing and information to achieve high customer satisfaction ( The components of this module include master data, sales support, sales, shipping and transportation, billing, credit management, sales information system and so on ( Tata Motors can ensure consistency and control in the ongoing maintenance and application of information as it can access a complete view of data of sales of distribution, accounting and material management. This integrated information can also be used to support customer-specific marketing campaigns, drive more profitable sales, maintain inventory levels and deliver the right products at the right time

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