Internship Training In Ashok Leyland

INTRODUCTION

Ashok Leyland is a well known automobile manufacturing company in India. Ashok Leyland believe that its historical success and future prospects are directly related to combination of strengths. This project is titled as a study on functional areas in Ashok Leyland and tries to find out the different aspects of manufacturing process in the company. The project was held at Hosur, Unit I from 22 to 30 June 2009. Different officials working in various departments have provided very important data in this report. Every effort has been made to understand the functions and activities of various departments as well as the manufacturing process.

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ABSTRACT

The report provides a consolidated preview of the functional activities of Ashok Leyland, Hosur Unit I.The referred unit is a core limb of Ashok Leyland,the nation’s pioneering automobile manufacturer.The core departments, their primary functions and the integrating activities are described in the report. Other special regulatory functions like evaluation methods, employee benefit schemes have also been covered.

The unique features and policies of the company, which make it a leader without contention and have aided the company in carving an excellent niche for itself in the national and the international arena, have also been referred.

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OBJECTIVES OF THE STUDY

The objectives of the study are: • To familiarize with business organization. • Getting practical experience regarding the organizational function. • To learn about the policies and functions of the organization. • To understand the culture in the organization and its effect on employees. • To get industrial exposure and experience. • To understand the production and marketing methods.

METHODOLOGY This study was undertaken by undergoing a training program at Ashok Leyland for about a fortnight. The information was collected by interacting and interviewing with the concerned personnel of various functional departments. The methodology used for the study is through the collection of primary and secondary data. Primary data is collected through direct observation and live discussion with the managers and the staff members. Secondary data is collected through Annual Reports, Business Journals, Existing Records and also from the website of the company.

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SCOPE OF THE STUDY

The study is mainly based on the details collected from each department. It provides a better understanding at functional level of each department. It provides a better understanding at functional level of each department i.e. Purchase, Materials, Production, Marketing, Finance and Human Resource Management. Each and every activity of the company has been studied very carefully with the data available. Apart from that I gained knowledge of the functioning of different departments and their inter relationship with each other. This study helped me familiarize with the manufacturing and assembling of commercial vehicles.

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COMPANY PROFILE Ashok Leyland has been a major presence in India’s commercial vehicle industry since 1948, the year it was born. The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by independent India. Pandit Jawaharlal Nehru, India's first Prime Minister persuaded Mr. Raghunandan Saran, an industrialist, to enter automotive manufacture. They are one of the India’s leading manufactures of commercial vehicles and special vehicles, engines for industrial purpose, gen sets and marine requirement equipments. For over five decades, Ashok Leyland has been the technology leader in India’s commercial vehicle industry, molding the country’s commercial vehicle profile by introducing technologies and product ideas that have gone on to become industry norms. Ashok Leyland at the time of its inception was known as Ashok Motors. It was assembling Austin cars at the first plant, at Ennore, near Chennai. In 1950, the company started assembly of Leyland commercial vehicles and soon the local manufacturing under license from British Leyland, participation in the equity capital, in 1954, the company was re christened Ashok Leyland. Since its inception, Ashok Leyland has been a major presence and these years have been punctuated by a number of technological innovations which went to become industry standard. This tradition of technological innovations and leadership was achieved through years of vigorous in-house research and development. From 18 seater to 82 seater double-decker buses, from 7.5 tonne to 49 tonne in haulage vehicles, from numerous special application vehicles to diesel engines for 5

industrial, marine and genset applications, Ashok Leyland offers a wide range of products. Ashok Leyland has six manufacturing plants Ennore Plant, Chennai. Hosur Plants Unit I, Unit II and Unit II A. Alwar, Rajasthan. Bhandara, Maharashtra. A new plant is to be set to be launched in Uttaranchal at Pant Nagar with a plant capacity of 40,000 commercial vehicles. Early products of Ashok Leyland included the Leyland Comet bus chassis sold to many operators including Hyderabad Road Transport, Ahmedabad Municipality, Travancore State Transport, Bombay State Transport and Delhi Road Transport Authority. In the popular metro cities, four out of five state transport undertaking buses come from Ashok Leyland. Some of them like the Double Decker and Vestibule buses are unique models from Ashok Leyland, tailor made high-density routes. Statistics reveal that the company is India’s largest exporter of medium and heavy duty trucks. It sells close to 83,000 medium and heavy vehicles each year. The company has a near 98.5% market share in the Marine Diesel engine markets in India. At 60 million passengers a day, Ashok Leyland buses carry more people than the entire Indian Railway network.

ORGANIZATION STRUCTURE 6

In 1987 the overseas holding by LRLIH (LAND ROVER LEYLAND INTERNATIONAL HOLDINGS LIMITED) was taken over by a joint venture between the Hinduja group, the Non Resident Indian Transnational group and IVECO Fiat SPA part of the Fiat group and Europe’s leading truck manufacturing company. Ashok P Hinduja is the chairman of the company. The Hinduja group also associated with Ennore Foundries Limited, Automotive Coaches and Components Limited, and Gulf Ashley Motors Limited. The subsidiary holdings are Ashley Holdings Ltd., Ashley Investment Ltd., and Ashok Leyland Project Services. The chief competitors of the company are; • Mahindra • Volvo • Tata Motors With a commanding strength of the about 12,000 employees the company is looking forwards to enhance the sxope of its action. It is aiming at expanding its production operation overseas to make it a more globally accessible company. It is looking to acquire a small to medium sized commercial vehicle manufacturers in China and other developing nations, which have an established product line. An example would be the 2007 acquisition of the Czech based Avia’s truck business rechristened Avia Ashok Leyland Motors.

VISION

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Be among the top Indian corporations acknowledged nationally and internationally for -

Excellence in quality of its products.

-

Excellence in customer focus and service.

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MISSION

Be a leader in the business of commercial vehicles,excelling in technology, quality and value to customer fully supported by customer service of the highest order and meeting national and international environmental and safety standards.

GEMBA

Gemba is a Japanese word meaning “Real Place” where the real action takes place. In the manufacturing industry, there are 3 major activities directly related to earning money, developing, producing and selling products.

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GEMBA KAIZEN

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Three ground rules for practicing kaizen in Gemba. 1. House Keeping 2. Muda Elimination [Waste Elimination] • Waste of over production • Waste of inventory • Waste of waiting • Waste of Motion • Waste of transportation • Waste of Producing Rejects • Waste of processing 3. Standardization.

GEMBA MISSION N7i+1 New 7 initiatives 1. Increase in the number of GEMBA 2. 5s [SEIRI,SEITON,SEISO.SEIKETSU,SHITSUKE] 3. EEI (Effort and Ergonomy index) 4. CMI (Cost management initiative) 5. Inventory Initiative 6. Critical machine uptime 7. Quality 8. Safety

Vendor Opportunities:

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Our Vendors are our valued partners in our business development and we shall work with them in a spirit of mutual co-operation to meet our business objectives. Vendor Development and Strategic Sourcing are handled by Corporate Materials Department (CMD). CMD identifies the vendors, rates the vendors based on feedback received from Supplier Quality Assurance Cell, sends drawings / specifications, calls for quotes with detailed break-up of operation-wise costs, and negotiates the price at which the parts will be supplied. In addition to CMD at Ennore, and the two Units at Hosur, there are Materials Management Departments (MMDs) for scheduling based on unit production plan.

Vendor Development of Strategic Sources:

Strategic Sourcing is central to the integrated Materials Management function. Ashok Leyland's policy is to develop a vendor base committed to continuous improvement to meet quality, cost and delivery standards. Ashok Leyland considers its vendors as partners in progress and believes in establishing mutually beneficial relationships. Ashok Leyland provides necessary technical assistance in the form of Project and Production Engineering, to maintain quality levels. In addition, where required, Ashok Leyland also helps vendors financially.

Qualification Analysis – Executives 10

Ashok Leyland has a tie-up with BITS, Pilani for a custom-designed, off-campus 2-year MS course in Engineering Management. Aimed at making Managers out of Engineers, assignments and projects are central to the learning process thus bridging the classroom with the engineers' workplace. From 2000, a BS programme in Industrial Engineering and Technology, is offered for diploma holders, again in collaboration with BITS. Apart from updating their knowledge base, the programme empowers engineers to acquire multiple skills. Ashok Leyland is one of the moving forces behind an M.Tech course in Automobile Engine Technology jointly managed by the automobile industry (Indian Society for Automotive Technology, made up of auto manufacturers), IIT, Madras and Institut Francais du Petrole, the French institute for IC engines.

ORGANISATION STRUCTIURE 11

MANAGING DIRECTOR

EXECUTIVE DIRECTOR

SENIOR DIRECTOR

GENERAL MANAGER

DEPUTY GENERAL MANAGER

ASST. GENERAL MANAGER

DIVISIONAL MANAGER

SENIOR MANAGER

MANAGER

DIVISIONAL MANAGER

ASST. MANAGER

SENIOR OFFICER

OFFICER

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DEPARTMENT FUNCTIONS

The major functional areas of the unit and the major departments which oversee those areas are catalogued as follows: 1. Personnel and Administration Department 2. Purchase & Material Planning Department 3. Production Department 4. Finance Department 5. Systems Department 6. Research & Development. A brief review of each functional department and its activities as follows:

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PERSONNEL & ADMINISTRATION Departmental Structure

DGM

DIVISIONAL MANAGER IR

-MANAGER -MT -DIVISIONAL MANAGER -ASST. MANAGER

Sr. MANAGER HR

-ASST. MANAGER -MT

MEDICAL OFFICER

CHIEF SECURITY OFFICER

-OFFICER

-OFFICERS

RECRUITMENT Recruitment is the process of ‘finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected.

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SOURCES OF RECRUITMENT The following are various external sources of recruitment:  Consultancies  Campus recruitment  Lateral entries

1. CONSULTANCIES The department heads where requirements are needed informs to the HR department about the requirement. The concerned persons for recruitment gets approval for filling the vacancies. Then the consultancies are approached telling the requirements. The fit applications are mailed to attend the interview. If satisfied, they are called for the personal interview.

2. CAMPUS RECRUITMENT The recruitment panel goes to the reputed colleges to select the candidates. On the following basis they recruit the candidates  GETs - Graduate Engineer Training  DETs - Diploma Engineer Training  ITI

3.LATERAL ENTRIES They pick the experience candidates or people from other companies. The following is the process of lateral entry recruitment: 1. Sourcing

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2. Interview a. Written test b. Technical round interview c. Personal Interview

TRAINING Training is an on-going process aimed at capability-building of the employees at all levels. Training programme is classified into • Skills • Knowledge • Behaviour

WORKMEN CAPABILITY BUILDING Training & Development for the unionized employees at the manufacturing units is focused on skill development. Both internal and external training is given for associates. Guest lectures of external faculty and various other industrial visits will be arranged for associates. In addition to some programmes like engineering drawing and waste elimination are also conducted.

TRAINING FOR SENIOR/ MIDDLE LEVEL MANAGEMENT Both external and internal training is given for the executives. Faculty from outside agencies will be arranged for training them. They also get faculty from

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corporate level. Training for senior/middle level management is done on the following basis: 1. Technical 2. Behavioral 3. Functional

DEVELOPMENT ACTIVITIES The following are the developmental activities:  TEI – Total Employee Involvement  CFG – Cross Functional Group  QC – Quality Control  SS – Suggestion Scheme

EMPLOYEE RETENTION/INCENTIVES

Performance linked pay The company has an annual appraisal system in place and pursuant to this system, performance linked pay, annual variable pay and/or commission is paid to the employees.

HR Initiatives There is a HR initiative called “SEED”. In this, employees are welcomed to provide suggestions to improve quality, performance, cost reduction, etc., If their suggestions are feasible, they are accepted and the others are rejected. A cash award, awards such as RESI, GEMBA passport is given to them as a token of appreciation. This motivates people to contribute their ideas. 17

Employee welfare schemes The following are the welfare schemes available to the employees.  Canteen facilities  Medical claims  Transport facilities  Ashok leyland school for their children  Scholarship schemes  Recreation facilities

PERFORMANCE APPRAISAL ‘Performance appraisal is an objective assessment of an individual’s performance against well defined benchmarks’. The performance appraisal method followed is based on the Superior – subordinate relationship, whereby the superiors rate their subordinates. They are rated on the basis of their performance.

CORPORATE SOCIAL RESPONSIBILITY

 Donations  Career guidance  AIDS awareness 18

 Guest lectures for school and college students

PROMOTIONS Promotions are given once in three years wherein there is elevation from one level to the other. They give promotions based on the 3x3 matrix.

A3 B3

A2 B2

A1 B1

C3

C2

CI

Performance

SEPERATIONS When people leave the organization, Exit interviews are usually conducted to know the reasons for leaving. The common reasons given are • Better opportunities • Financial problems • Lack of growth • Job clarity

ATTRITION Attrition rate is noted to be 5.6% till December 2008.

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PURCHASE & MATERIAL PLANNING For a manufacturing company to produce end items to meet demand the availablility of sufficient production capacity must be co-ordinated with the availability of raw materials and purchased items from which the end items are to be produced.the following are the system which are followed to procure materials: -JIT -LCL -MRP -VMS -KANBAN

JIT It is an approach than seeks to eliminate all source of waste in production activities by providing the right part at the right place at right time .JIT encompasis the successful execution of all manufacturing activity required to produce a final product from design to delivery and including all stages of conversion from raw materials onwards.

PURPOSE OF JIT • -have only the required inventory need • -improve quality to zero defect • -to reduce lead time

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• -to incrementally revise the operations themselves and to accomplish these things at minimum cost.

LOW COST LOGISTICS (LCL) LCL Includes materials such as bolts nuts etc. these are purchased in bulk and they are used for production. they don’t affect the inventory cost.

MATERIAL REQUIREMENT PLANNING Material is a technique for determining the quantity and timing for the acquisition of dependent items needed to satisfy master schedule requirements An alternative approach to managing dependent demand items is planned for Procurement or manufacture of the specific components that will be required to produce the required quantities of end production schedule indicated by the master production schedule.

BILL OF MATEIALS The parts /components requirements of the final product which is to be manufactured is usually presented in the form of a product structure/bill of materials. it is a listing of all components that go into an assembled item. It frequently includes the part number and quantity required per assembly.

KANBAN The kanban system is a signal proofing. the firm stores their materials and other inventory item in a signal use contains that holds a specific amounts of material or

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other inventory part that are used to manufacture the product. when the material in a container is depleted, a KANBAN that defines requirements of inventory items to continue the production process is kept in the container.

PRODUCTION

Departmental Structure

DEPUTY GENERAL MANAGER

ASST. GENERAL MANAGERASSEMBLY

Sr. MANAGER

ASST. GENERAL MANAGERMACHINE SHOP-V

Sr. MANAGER

CYLINDER BLOCK & CYLINDER HEAD

ASST. MANAGER

DIVISIONAL MANAGER- SHOP-I

Sr. MANAGER

Sr. MANAGER

CONNECTING ROD, CAMP SHOP & GEARS

ASST. MANAGER

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EXECUTIVES

EXECUTIVES

EMPLOYEES

EMPLOYEES

MACHINE SHOP I COMPONENTS MACHINED:

• Cylinder block machining (AL-680 Engine) • block machining (H-series Engine) • Rocker level (Rocker arm actuating device) • Cylinder H-series camshaft machining • H-series connecting rod machining • H-series timing gear case machining • H-series flywheel housing machining.

MACHINE SHOP-V COMPONENTS MACHINED: BEARING CAP FOR H-SERIES: Operations done:

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 Rough milling  drilling  arrow milling  finish milling  washing  boring  tapping  end milling  brushing of holes  assembly of bearing caps  injection flood washing  leak test water ways  counter boring,reaming

ENGINE ASSEMBLY II & V FIXING OF CRANKSHAFT AND BEARING CAPS: CRANKSHAFT is attached with a gear and is fixed to the bottom of the cylinder block by bearing caps.

FIXING OF CAMSHAFT CAMSHAFT is attached with a timing gear and is fixed in the required space provided in the cylinder block

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• Fixing of flywheel housing • Assembly of oil sump • Fitting of oil stainer • Fixing of fuel injection pump • Fixing of connecting rod and piston • Assembly of inlet manifold • Fixing if started motor • Fixing of connecting rod with crankshaft • Fixing of timing gear case • Compressor fitting • Fitting of cylinder head and rocker arm assembly • Fitting of cylinder head cover • Fitting of oil coolant • Assembling of turbocharger or air fitter • Fitting of atternator, fitting of belt.

MEDIUM DUTY VEHICLE(MDV) CATEGORY: Vehicles which transport load in the range of 16 to 35 tonnes PRODUCTION IN MDV ASSEMBLY(H1 PLANT):44/day ,22/shift

STAGES OF ASSEMBLY :

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Frame Assembly: 5stages Chassis Assembly: 13 stages

FRAME ASSEMBLY: STAGE 1: Mounting of side members and cross members STAGE 2: Mounting of Front Spring-rear, Front Spring-rear, Rear spring-front, Rear spring-middle, Rear spring-rear. STAGE 3: Fitting of Engine mounting brackets and FES mounting brackets STAGE 4: Side members fastening to torque limit, Steering box bracket, Side Members reaming, Front tie channel mounting STAGE 5: Fitment of FES rear brackets, Shock absorber brackets and Torque checking PASSING STAGE: Checking and tilting

CHASSIS ASSEMBLY: STAGE 6: Radiator mounting brackets, Air tank mounting , Air cleaner mounting bracket, battery mounting bracket, grease nipple fitment, Bellcom lever mounting.

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STAGE 7: DC valve mounting, Oil piping, Clutch oil piping, Quick release valve mounting. STAGE 8: Spring fitment, frame punching STAGE 9: Silencer fitment, first axle mounting. STAGE 10: Second axle mounting, slack adjustment STAGE 11: Fuel piping, Air piping, Air filter mounting, Diesel filter mounting, Steering box mounting STAGE 12: Engine mounting, fuel tank mounting, Diesel filter mounting, Steering box mounting STAGE 13: Radiator fitment, Radiator supports tightening, Rear lamps fitting,Turbocharger outlet pipe connection and Radiator hose connections STAGE 14: Exhaust piping, Shock absorber fitment (front and rear), Battery mounting and connection of circuits, battery casing fitment and second propeller shaft mounting STAGE 15: Tyre mounting, Maxcut checking STAGE 16: FES mounting, Electric fitments (male-female connecting process) STAGE 17: Bumper fitment, FES wiring, Universal joint (UJ) fitment with steering handle, ABC fitment and connecting STAGE 18: Greasing of joints, nuts, etc., Off track arrangements 27

FES DRESSING: • Fitting of seats, ABC pedals, steering handle and instrument box • Electrical wiring • Flink Valve Fitting.

PDI (PRE DELIVERY INSPECTION): Testing of vehicle on real road conditions The following are the various tests done to test the vehicle: 1. Speed test 2. Acceleration test 3. Vibration test 4. Torque tightening 5. Oil level and water level checking 6. Electrical components checking 7. Air leakage test 8. Grease level checking 9. Power steering hose routing and clamping 10. Road test

QUALITY CONTROL QUALITY: 28

It is the degree to wish a set of inherent characteristics fulfills requirements. The following are the various dimensions of quality. • Performance • Features • Conformance • Reliability • Durability • Service • Response • Aesthetics • Reputation

TQM: It is defined as both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. It is the application of quantitative methods and human resources to improve all the processes with an organization and exceed customer needs now and in the future.

QUALITY POLICY: Ashok Leyland is committed to achieve customer satisfaction by anticipating and delivering superior value to the customer in relation to their own business, through the products and services offered by the company and comply with statutory requirements.

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Towards this, the quality policy of Ashok Leyland is to make continual improvements in the processes that constitute the quality management system, to make them more robust and to enhance their effectiveness and efficiency in achieving stated objectives leading to 1. Superior products manufactured as also services offered by the company. 2. Maximum use of employees potential to contribute to quality and environment by progressive up gradation of their knowledge and skills as appropriate to their functions. 3. Seamless involvement from suppliers and dealers in the mission of the company to address customers changing needs and protection of the environment.

OBJECTIVES OF QC DEPARTMENT: 1. Identity the quality level to meet drawing and specification requirements. 2. Establish necessary infrastructure and system to carryout quality planning, control and improvement activities. 3. Exercise necessary controls at all stages to ensure total conformance of product quality to design specifications. 4. Evaluate product quality in the light of performance and customer feedback to review and update quality level, infrastructure and systems.

SYSTEM OF ACCEPTING PRODUCTS: 1. ZERO DEFECT SAMPLING PLAN:

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Here, the defect level should be zero, then accept the product. If there is one defect also they will reject the product.

2.DOUBLE DEFECT SAMPLING PLAN: Here, first one set of samples will be taken and if they find defect another set of samples will be taken if it goes beyond the fixed level then reject or else accept the products.

INSPECTION: It is also to eliminate, substantially reduce or automate the inspection activity. There are 4 phases of inspection. • 100% inspection • Sampling • Audit • Identity check

PURCHASED PRODUCTS VERIFICATION PROCESS

SUPPLIER THROUGH PURCHASE

* INWARD REJECTION *INTERNAL CUSTOMER CONCERN *VENDOR PERFORMANCE

INPUT

OUTPUT

CUSTOMER ENG / VEH / ASSY

PURCHASED

*INTERNAL CUSTOMER FEEDBACK

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RESPONSIBILITIES OF QC DEPARTMENT The quality engineering dept is responsible for quality of all products of Ashok Leyland, Hosur which is achieved by… 1. Ensuring the quality of bought out machine VIZ rough, semi-finished & finished. 2. Exercising controls on the processes clearing, manufacturing and assembling there by ensuring the quality of the house made items. 3. Ensuring the quality of the finished products prior to dispatch to the customers. 4. To provide support to the vendors to meet the quality requirements and also guidelines for continuous improving.

The departments is also responsible for 1. Planning and implementation of APQPCP & PPAP procedures to meet TS16949 requirements. 2. Training in quality engineering and quality control technique to all dept of Ashok Leyland, Hosur. 3. Monitoring quality level of “zero kilometer” failures and field performance for improvements

BENCHMARKING: Benchmarking is the systematic search for best practices, innovative ideas, and highly effective operating procedures. Benchmarking considers the experience

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of others and uses it. It promotes superior performance by providing an organized framework through which organizations learn how the “ Best in class ” do things, understand how these best practices differ from their own and implement change to close the gap.

LEVELS OF BENCHMARKING: 1. Contempary level 2. High level.

PROCESS OF BENCHMARKING: The following six steps are followed to benchmark 1. Decide what to benchmark 2. Understand current performance 3. Plan 4. Study others 5. Learn from the data 6. Use the findings.

CONTINOUS PROCESS IMPROVEMENT: Quality based organizations should strive to achieve perfection by continuously improving the business and production processes.

CUSTOMER RETENTION: It represents the activities that produce the necessary customer satisfaction that creates customer loyalty, which actually improves the bottom line. It moves

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customer satisfaction to the next level by determining what is truly important to the customers and making sure that the customer satisfaction system focuses valuable resources things that really matter to the customer. It is the connection between customer satisfaction and the bottom line.

WAYS TO RETAIN CUSTOMERS: The following are the various ways followed here to retain their customers 1. Warranty expenditure measure 2. Dealers conference 3. Customer visits 4. Monthly plant quality review

FEEDBACK FROM CUSTOMERS: Feedback is collected from the customers regarding quality through the following ways. • Customer visits • Toll-free telephone number • Comment card • Report card

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PROBLEM SOLVING METHOD: -

IDENTIFY THE OPPURTUNITY

ANALYSE THE PROCESS

PLAN FOR THE FUTURE

ACT

PLAN DEVELOP THE OPTIMAL SOLUTION

STANDARDIZE THE SOLUTION

STUDY THE RESULTS

STUDY

DO

IMPLEMENT 35

PLANT ENGINEERING Plant engineering is responsible for proper functioning of the plant by carrying out maintenance operations such as electrical and electronics equipments maintenance, fork lift charging and its repairing, repairing of pneumatic circuits etc.. It is also responsible for maintenance works carried out in the organisation. The following are the various types of maintenance:  Predictive maintenance  Preventive maintenance  Breakdown maintenance  Routine maintenance

1. PREDICTIVE MAINTENANCE: Predictive maintenance is done on assumption by experience before the occurring or by any symptoms of occurring.

2. PREVENTIVE MAINTENANCE:

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Preventive maintenance is done before the accident occurs, they will take actions to prevent them.

3. BREAKDOWN MAINTENANCE: Breakdown maintenance is done after the accident occurs. Actions will be taken only after the occurrence

4. ROUTINE MAINTENANCE: Routine maintenance is done on even time or on routine basis. It is generally carried out without affecting the productivity.

DIVISIONS: Plant engineering is divided into 4 divisions to carry out its functions. The following are divisions of plant engineering:  Electrical  Mechanical  GWE(General Works Engineering)  Civil

PERIOD OF MAINTENANCE: Period of maintenance is done on the basis of VED analysis. It is also known as time based maintenance. Here VED stands for V - Vital E - Essential D – Desirable 37

ANALYSIS

DURATION

V- Vital

6 months

E- Essential

9 months

D- Desirable

Once in a year

PEP: - PRODUCTION ENGINEERING & PROJECTS PEP

department works as a bridge between R & D and Manufacturing

Department. The R & D designs and if the testing is successfully achieved it is transferred to PEP.

RESPONSIBILITIES OF PEP:

1. Deciding and releasings of MAKE OR BUY DECISION ADVICE ( MBDA) for new components. If bought from supplier that may be; BOR (Bought out Rough) – need further processing. BOSF ( Bought out Semi Finished ) – need further prosessing. BOF (Bough out Finish) – ready for assembly. BOR & BOSF are chosen to maintain quality standards, core competency, improve efficiency, and to enjoy cost benefits. 2. Laying down the Process and Selection of Machines. 3. Designing new tools for inhouse components 38

4. Organising and Conducting assembly trials. 5. Continuous improvements towards quality and productivity 6. Analysis of processes and layouts 7. Progressing of new projects to bridge between R & D and manufacturing.

IED – Industrial Engineering Department. This is closely related to PEP department. They work as a single wing.

RESPONSIBILITIES OF IED 1. Decide on capacity planning. 2. Manpower capacity & Requirement. 3. Machine capacity and running time

4. Operating time. 5. Frame performance index for incentive. 6. Frame the work instruction sheet, process sheet. 7.

Processing FMEA for assembly vehicle

STORES AND LOGISTICS There are Stores meant for both Vehicle assembly and Engine Assembly. Vehicle part number and engine part number are framed for identification. 2 bin system are practiced. Despatching of finished vehicle and semi finished engine are processed every morning.

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Goods Receipt Note (GRN) is the vital documents required for inspection. TVS Logistics are the group who supply the internal components. All the dispatching and supply schedules are accessed from ERP both by Company Logistics and TVS Logistics. As a cost beneficial measure for the Company and Supplier , the godowns of the supplier are located nearby for easy delivery and enhances the efficiency of JIT.

FINANCE FINANCE FUNCTIONS: 1) Investment decisions 2) Financing decisions 3) Dividend decisions 4) Liquidity functions

ROLE OF FINANCIAL MANAGER: 1) Funds raising 2) Funds allocation 3) Profit planning 4) Understanding capital markets

SHAREHOLDING: The following are the shareholders of Ashok Leyland Ltd:  51% owned by Hinduja group  12% - 14% owned by public

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 Remaining shares are owned by various financial institutions

DIVIDEND POLICY: The Board may, at its discretion, recommend dividends to be paid to the shareholders. Generally, the factors that may be considered by the Board of Directors before making any recommendations for the dividend include, without limitation, the future expansion Splans and capital requirements, profits earned during the fiscal year, cost of raising funds from alternate sources ,liquidity position, applicable taxes including tax on dividend, as well as exemptions under tax laws available to various categories of investors from time to time and general market conditions. The Board of Directors may also from time to time pay interim dividends to the shareholders. Dividends, other than interim dividends, will be declared at the annual general meeting of the shareholders based on the recommendation of the Board of Directors.

BUDGET: The funds which are required by the organisation are provided by the corporate office, Chennai. These funds are allocated to the departments whenever there is requirement.

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ALLOCATION OF FUNDS: Funds are allocated for various purposes of the departments. They allocate funds for day to day activities and also for various projects and also for special projects, they also allocate for payroll.

PAYROLL: They use the customized ERP to pay salary to the employees. Every month on 10th salary is paid for the workers and on 28th salary is paid for the executives.

SYSTEMS

The systems department maintains and updates the software / data used in the unit. The department also maintains the intra network and also does the system maintenance. System is an orderly grouping of independent components linked together according to a plan to achieve a specific objective. System is a combination of resources working together to convert the input to useful output. The total arrangement of the required entities takes place in this department.

Ashok Leyland Network Connectivity

Supplier

Internet ENNORE

Hosur- unit I Corporate

Hosur- Unit II Bhandara

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AL - AU ALWAR

MKTG

DCU

ASHOK LEYLAND ERP- FAMILY MEMBERS: • ALMAP- Manufacturing • ALMARK- Marketing • ALFIN- Finance • ALPAY- Payroll • ALPMS- Plant maintenance • ALEMS- Environmental management • ALHR- Human resources • ALCORP- Corporate functions • ALSCM – Supply Chain Management • ALPD – Product Development • ALNPRD – Non Production • ALIMS – Information Management Systems. 43

HARDWARE TECHNOLOGIES USED IN SYSTEMS: # DATABASE SERVERS – (3nos) * HP-R*8640 Itanium Processor (1.3 GHz) * 16 Processors each * 64 GB RAM (total 192 GB) #APPLICATION SERVER (5nos): --Compaq Alpha Server- model ES40 * Dual Processor * 6 * 9.0 GB of OS * 4GB RAM # DATA STORAGE: * EVA 5000 Disk sub system * 2 Controllers * 7 TB * RAID 0 + 1

SOFTWARE TECHNOLOGIES USED IN SYSTEMS: # Oracle log # Internet Application Server (IAS) # Real Application Cluster (RAC) # Application development with *Oracle forms 6i

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* Oracle reports 6i

MODULES USED INSIDE THE COMPANY: • ACL - Access Control Module • BOM - Bill of Material • MPL - Material Planning • SDB - Supplier Database • POS - Purchase Order System • IPS - Inspection Planning Sheet • INW - In warding • JIT - Just In Time items • LCL - Low Cost Logistics Items • MRM - Sun Contractor Material Issues • MTN - Sub Contractor Material Transfer • VQR - Vendor Quality rating • VDP - Vendor Delivery Performance • STK - Stock / Inventory • CPM - Comprehensive Process Master • PPL - Production Planning • SFC - Shop Floor Control • UPJ - Unplanned Jobs • URDC - Inter Units Receipt & Dispatch • EXS - Excise • PSL - Priced Stored Ledger 45

• WMC - Works Made Items Costing • VCS - Vehicle Costing System • SCL - Sub Contract Ledger • RMGP – Returnable Material Gate pass • NRMGP – Non RMGP • GCS – Gauge Calibration System • CFS – Chassis Final Specification • LTMS – Lean Tool Management System

GROWTH MILESTONES OF ASHOK LEYLAND

1966 – Full air brakes introduced 1967 – Double Decker buses introduced. 1968 – Power steering offered. 1979 – Multilane trucks introduced. 1980 – Integral bus with air suspension. 1992 – Self-certification status for defence supplies. 1993 – ISO 9000 Certification. 1994 – ISO 9001 Certification 1997 – India’s first CNG powered bus. 1998 – QS 9000 Certification 1999 – CNG (Compressed Natural Gas) introduced. 2000 – Euro-I, Engines/vehicles introduced. 2001 – ISO 14000 Environment Management System Certification.

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2002 – Exclusive Machine line – 2 for Hino cylinder. 2003 – E-Comet launched. 2004 – 50,000 mark vehicle produced.

PRODUCT PROFILE Ashok Leyland offers a comprehensive product range with trucks from 7.5 tons GVW to 125 tons GVW. From 19 to 80 seaters a host of special application vehicles and diesel engines from industrial gensets and marine application. Product profile can be broadly split into six categories viz. passenger, goods, cargo, heavies, special Vehicles and Engines.

PASSENGER ICV

Viking

MOV

Cheetah

Viking Hino

Viking AL

Rear Engine Bus

Vestibule Bus

Panther

Cruiser

CNG Bus

Viking

Super

Double Decker

GOODS Haulage

Comet

Bison

Tipper

Taurus 6X4

Tractor

Comet 2614

Tusker 3516 Multi Axle Tusker

CARGO LCV

Haulage

Cargo 1614

Tipper

Cargo 909

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HEAVIES Haulage

Tractor

Beaver

Dumper

SPECIAL VEHICLES Defence

LRV

Fire Fighter

RIV 4 x 4

ENGINES Industrial

Marine

RESEARCH AND DEVELOPMENT

World-class Technology : To offer world-class technology that is relevant and affordable to the Indian customer is the philosophy that drives R&D at Ashok Leyland. Over the years, this philosophy has been translated time and again into products that seamlessly integrate international technology with local needs. "The role of R&D is central in fulfilling the company-wide commitment to total customer satisfaction" states Mr. R. Seshasayee, Managing Director, and adds that the increased infrastructural and financial support expresses the company's determination to become self-reliant in R&D.

Value to the Customer The immediate R&D priorities are to pro-actively address safety and environmental issues, harness and adopt technologies that provide value to the customer in an atmosphere enabling creativity and innovation. Powering those 48

who "engineer tomorrows" with an enabling infrastructure has been top priority for the company.

Test Tracks But our R&D is not confined within walls. It extends to the test tracks as well. Rigorous tests are carried out under stringent simulated conditions that replicate the most treacherous landscapes. Vehicle ruggedness and longevity are a prime customer concern, as they directly impact earnings. Ever conscious of this, Ashok Leyland makes extensive use of a modern CAD set-up, a comprehensive test track facility (where cobble-stones are calibrated and reset periodically), accelerated fatigue testing rigs and rigorous durability testing facilities. Together they ensure that there is a constant improvement in the life and on-road performance of every make of Ashok Leyland vehicle to hit the roads. Safety, durability, through our R&D efforts.

Innovations Ashok Leyland product development successes have come from a keen sense of anticipation and attentiveness. The company initiated research into alternative fuels well before legislative debate had even begun in the country. The result was the implementation of CNG technology ahead of the rest promising a breath of fresh air for polluted cities.

People We are close to 12,000 people, moulding and managing technology. And reaching the benefits of technology to our customers. Offering transport solutions and aftermarket support wherever our products operate - which is almost everywhere.

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We are spread throughout India, and even outside India. Our tasks vary, so do our skills. But we are bound together by a healthy chain of interdependence, to deliver value to the customers.

ENVIRONMENT POLICY Ashok Leyland is committed to preserve the environment through a comprehensive environmental policy and a proactive approach in planning and executing the manufacturing and service activities.

The objective of Ashok

Leynand’s environmental policy is to adhere to all applicable environmental legislations and regulations, adopt pollution preventive techniques in design and manufacture, conserve all resources such as power, water etc, and optimize its usage, through scientific means, minimuse waste generation by all possible ways and Reduce, Reuse and Recycle the same through time bound action plan as well as provide a clean working environment to employees, contractors and neighbours. Ashok Leyland has proactively developed its engines to meet the progressive emission norms, including the Bharat Shage II norms. The Ennore unit was recently identified as one of the model energy – efficient units by a CII-TNEB organized energy conservation (ENCON) mission. From August 1999 “ green energy” has been powering the Hosur Plants. Even cooking is eco-friendly here. The canteen runs on Solar Heaters and food waste becomes fodder to cattle at a cattle farm at Mathagiri near Hosur. To the best out of Ashok Leyland’s eco-friendly engine technology, round the year awareness and action programmes are held at Operators’ meets and service campaigns. Ashok Leyland has also launched a dedicated mobile emission clinic 50

operating on highways and at entry points to New Delhi. On an average 250,000 liters of recycled water is pumped into the garden saving Rs. 1.5 million per annum.

OBSERVATIONS AND INTERPRETATIONS. SWOT ANALYSIS STRENGH OF THE COMPANY 1. Good Training System. 2. Good Organisational Climate. 3. High Market Share 4. Skilled Employees 5. Strong Functional Structure 6. Standard Quality Product

WEAKNESS OF THE COMPANY 1. Low margin 2. High price 3. Sales representatives are less 4. There is no proper mechanism to handle the grievance of the customers

OPPORTUNITIES FOR THE COMPANY 1. Due to liberalization, demand for heavy vehicle have steeped up all over the globe. 2. National market through good advertisement. 3. Company provides better credit facility to dealers. 4. Company introduces promotional programmes

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THREATS FACED BY THE COMPANY 1. High competion 2. Liberal credit policy of other brand 3. Promotional programmes of other brand 4. Complicated national market 5. Good replacement facility if other brands.

FINDINGS 1. In this organisation there is no flexible manufacturing system. 2. There is no effective utilization of Human Resources. 3. To solve their work related problems QCC (Quality Control Circle) and

cross functional team are made effective. Work instructions, standard operating procedures, inspection reports, QC charts are effective.. 4. In this organisation there is no flexible manufacturing system. 5. There is no effective utilization of Human Resources. 6. To solve their work related problems QCC (Quality Control Circle) and cross functional team are made effective. 7. Work instructions, standard operating procedures, inspection reports, quality control charts are effectively utilised by the employees.

SUGGESTIONS

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• The company should earmark more money for the advertisement and sales promotion of its products. It helps to increase the brand awareness and image. • The company should concentrate on markets in the international arena where its competitors are less powerful. • Complaints should be rectified in the shortest possible time. For this a customer satisfaction cell should be organized.

CONCLUSION Ashok Leyland is a well known automobile manufacturing company in India.In Unit I, Hosur, there is a well planned organisation structure being followed. There is a well integration of all the functional departments which facilitates the use of software like ERP. Retention of the talented people is essential as they contribute a lot to success of the organisation. The catalogued training programme and the resulted report have been of great help to me, an aspirant manager, to understand the functioning of a major establishment like Ashok Leyland. The training programme has also revealed many unknown facts about the working of a manufacturing unit.

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BIBILIOGRAPHY Human Resource Management – Ashley News. Financial Management

– I.M. Pandey

Total Quality Management

– Bestersiek

Web Bibiliography

– www.ashokleyland.com

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