Professional Documents
Culture Documents
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.
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ABSTRACT
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
METHODOLOGY
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.
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industrial, marine and genset applications, Ashok Leyland offers a wide range of
products.
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
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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
VISION
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Be among the top Indian corporations acknowledged nationally and internationally
for
MISSION
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.
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.
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.
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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.
ORGANISATION STRUCTIURE
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MANAGING DIRECTOR
EXECUTIVE DIRECTOR
SENIOR DIRECTOR
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:
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PERSONNEL & ADMINISTRATION
Departmental Structure
DGM
-MANAGER -OFFICER
-MT -ASST. MANAGER
-DIVISIONAL -MT
MANAGER
-ASST. MANAGER
-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
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 & 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.
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
EMPLOYEE RETENTION/INCENTIVES
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.
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Employee welfare schemes
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.
Donations
Career guidance
AIDS awareness
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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 A2 A1
B3 B2 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
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
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• -to incrementally revise the operations themselves and to accomplish these
things at minimum cost.
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 is a technique for determining the quantity and timing for the
acquisition of dependent items needed to satisfy master schedule requirements
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. ASST.
MANAGER MANAGER
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EXECUTIVES EXECUTIVES
EMPLOYEES EMPLOYEES
MACHINE SHOP I
COMPONENTS MACHINED:
MACHINE SHOP-V
COMPONENTS MACHINED:
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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
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.
CATEGORY:
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 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
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 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 14: Exhaust piping, Shock absorber fitment (front and rear), Battery
mounting and connection of circuits, battery casing fitment and second
propeller shaft mounting
STAGE 17: Bumper fitment, FES wiring, Universal joint (UJ) fitment with
steering handle, ABC fitment and connecting
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FES DRESSING:
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:
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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:
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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:
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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.
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
SUPPLIER
INPUT OUTPUT CUSTOMER ENG /
THROUGH
VEH / ASSY
PURCHASE
PURCHASED
*INTERNAL
* INWARD CUSTOMER
REJECTION FEEDBACK
*INTERNAL
CUSTOMER
CONCERN
*VENDOR
PERFORMANCE
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RESPONSIBILITIES OF QC DEPARTMENT
BENCHMARKING:
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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.
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.
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
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PROBLEM SOLVING METHOD: -
ACT PLAN
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
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ANALYSIS DURATION
V- Vital 6 months
E- Essential 9 months
D- Desirable Once in a year
RESPONSIBILITIES OF PEP:
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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.
RESPONSIBILITIES OF IED
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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
SHAREHOLDING:
The following are the shareholders of Ashok Leyland Ltd:
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Remaining shares are owned by various financial institutions
DIVIDEND POLICY:
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,
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.
Supplier
Internet
Hosur- Unit II
Hosur- unit I
ENNORE Corporate Bhandara
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AL - AU
ALWAR MKTG DCU
• 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.
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HARDWARE 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
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• 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
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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 909
Cargo 1614 Tipper
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HEAVIES
Haulage Tractor Beaver
Dumper
SPECIAL VEHICLES
Defence LRV Fire Fighter
RIV 4 x 4
ENGINES
Industrial Marine
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.
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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 after-
market 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 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
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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.
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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
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.
CONCLUSION
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
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