CASE BACKGROUND

 Tata Auto Plastic Systems(TAPS) – operating subsidiary of TATA Group

set up in collaboration with Faurecia Group France & Foggini Group of
Italy

 Major customers – Ford, MG Rover, General Motors etc.

 TAPS initially focused on financial perspective ROCE and WACC

(financial perspective)

 TAPS adopted Balanced Score Card for holistic coverage of all

perspectives ( Financial, Customer, Internal, Learning & Growth)

 Case analyzes Pre & post BSC strategy and improvements after adoption
of BSC
 TATA AUTO PLASTIC SYSTEMS
BALANCED SCORECARD
OBJECTIVES MEASURES
F1: Increase ROCE  Return on Capital Employed
F2: Increase customer base  Number of new OEMs
 Sales from new OEMs
F3: Increase business with existing  Sales (turnover) from existing
customers OEMs
 Sales of new products with
existing OEMs
FINANCIAL
PERSPECTIVE F4: Build export business  Sales from export business

F5: Maximize asset utilization  Asset turnover

F6: Become industry cost leader  Operating costs/sales

 Cost reduction achieved over
standard cost by product family
 TATA AUTO PLASTIC SYSTEMS
BALANCED SCORECARD
OBJECTIVES MEASURES

C1: Preferred low-cost full-service  Value of request for quotes (RFQ’s)

supplier of high value added (HVA) received as full-service supplier
products and services (FSS) of modules and systems.
 Value of orders as FSS.

C2: Full program management at  Value of RFQ’s obtained for full

significantly lower costs and shorter program
lead times  Value of orders obtained for full
CUSTOMER program

PERSPECTIVE C3: Provide value for money through

low-cost manufacturing that meets
 Customer satisfaction index
 Number of quality-issues raised in
world-class quality and delivery JD Power report
expectations
 TATA AUTO PLASTIC SYSTEMS
BALANCED SCORECARD
OBJECTIVES MEASURES

P1: Build competencies to integrate  Capability Index

components to achieve module /
system surplus

P2: Upgrade manufacturing processes  Part-per-million customer rejects

to achieve customer expectations
INTERNAL
PERSPECTIVE
P3: Upgrade delivery processes  Percent delivery compliance – on
capability to meet delivery time , in full
requirements of Indian and overseas  Capability Index
customers in a cost effective manner  Reduction in logistics cost
compared to standard cost
 TATA AUTO PLASTIC SYSTEMS
BALANCED SCORECARD
OBJECTIVES
P4: Optimize use of assets and build
processes to minimize operations costs
MEASURES
 Overall equipment effectiveness
 Material cost against standard cost
 Energy cost as percent of sales
 Direct labor cost as percent of sales

P5: Excel in customer relationship  Relationship Index

management
INTERNAL
P6: Build partner relationships to  Number of new technologies acquired
PERSPECTIVE upgrade technology and expand business through relationships
 Growth in turnover through partner
relationships

P7: Improve capabilities in design  Number of employees whose key

tooling, testing with project performance appraisals are linked to
management. strategic objectives.
 Empowerment Index
 TATA AUTO PLASTIC SYSTEMS
BALANCED SCORECARD
OBJECTIVES MEASURES

L1: Create climate for Action through  Number of employees whose key
LEARNING alignment and empowerment. performance appraisals are linked
to strategic objectives
&  Empowerment Index
GROWTH L2: Build competencies  Competency mapping between
employee and project mapping
PERSPECTIVE L3: Integrate IT in all business  Use of IT for reduction of time in
processes data collection and analysis