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Chapter 2

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Information Technology Management
ITM 102

Management Information SystemsPart 1Organizations Management and the Networked EnterpriseChapter 2How Businesses Use Information SystemsOpening Case The Tata Nano Makes History Using Digital ManufacturingIndia Tata Motors invented the cheapest car ever made 3000Tata met the challenge of building this car through digital manufacturing systems to cut downthe time required to design the new product and introduce it to the marketCompetitive Advantage isthe key in the automotive industry it is the ability to develop and produce new products with many different variations within a very short time spanManual effort was required to create and maintain processes plants and products design which resulted in a longer times to choose the right tools for operationsThe company also had to create programs manually for assembly line robots a process that was error prone and time consumingBy doing this there were many negative consequences such as Data used to plan a vehicle became useless over time and the company was unable to easily change its product mix roll out a new product on an existing production line or schedule the assembly of two different products on the same line However in July 2005 everything changed when Tata Motors changed to Digital Manufacturing using Dassault Systems Digital Enterprise Lean Manufacturing Interactive Application DELMIADigital manufacturing automates processes in product design and production engineering planning enabling Tata to plan manufacturing processes design plant layouts and then imitate the effects of those plans including the impact of new manufacturing techniques and changes of products on existing production lines Unlike before Tata Morots is able to cut down expensive protypes which must be rebuilt each time a design changes By adopting to digital manufacturing Tata Motors has reduced timetomaket for new passenger cars by at least six months Manufacturing and facilities planning now take 30 percent less time with a 20 percent reduction in the cost of manufacturing planning process The experience of Tata Motors shows how much companies today rely on Information systems to run their businesses and drive innovation growth and profitability Also shows how much information systems make a difference in a companys ability to innovate execute and improve overall business performance Manual processes was slowing down the growth of Tata Motors however once they changed into digital Manufacturing it has provided Tata Motors support for manufacturing their cars
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