Professional Documents
Culture Documents
Middle Part
Middle Part
CHAPTER 2
1
INDUSTRY PROFILE
Horses had dreams of them since time immemorial, but it was only in the 18 th century that the first horseless carriage actually hit the roads. Thats not to say that the idea never struck anyone. Seeds of the idea, in fact, originated long before the first contraption was rolled. The history of the automobile actually began about 4,000 years ago when the first wheel was used for transportation in India. several Italians recorded designs for wind-driven vehicles. The first was Guido da Vigevano in 1335. It was a windmill-type drive to gears arid thus to wheels. Vitoria designed a similar vehicle that was also never built. Later Leonardo da Vinci designed clockwork-driven tricycle with tiller steering and a differential mechanism between the rear wheels. In the early 15th century, the Portuguese arrived in china ynd the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By the 1600s, small steam-powered engine models were developed, but it was another century before a fuil-sized engine-powered vehicle was created. A catholic priest named father ferdinan verbiest is credited to have built a steam-powered vehicle for the Chinese emperor chien lung in about 1678. There is no information about the vehicle, only the event. Since James watt didnt invent the steam engine until 1705. We can guess that this was possibly a model vehicle powered by a mechanism like Heros steam engine-a spinning whell with jets on the periphery. Although by the mid-15th century the idea of a self-propelled vehicle had been put into practice with the development of experimental vehicles powered by means of springs, clockworks, and the wind, Nicolas-Joseph cogon of France is considered to have built the first true automobile in 1769.
The history of motor vehicles has surely been a well-traversed one . The automobile, as it progressed, was a product of many hands, of revolutionary concepts and of simple, almost unnoticed upgrading. In the end , the one who received the most for these challenges and changes was the motorist, whose interest, money and enthusiasm have forced the auto-moguls to upgrade, perfect, and add to previous achievements in order to stay in the competition.
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Although India has been much discussed in recent years, and has been the recipient of major foreign investment in its automotive industry. It has in many ways not received the attention of the worlds other major developing country, china- but this is about to change. With the worlds second largest and fastest-growing population, there is no denying Indias potential in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is already off to a good start, with a well-developed components industry and a production level of one million four-wheeled vehicles a year, plus a further five million twoand three-wheelers. India also has substantial strength in mass production techniques and is particularly well served in the fields of research and development and software design. The implications, market drivers and scope of a future massive Indian vehicle market are covered in the India strategic market profile, a brand-new forecast of Indian automotive and related activity to 2020. Based on max pembertons unique relational long-term forecasting model, it forecasts car and CV sales, demographics, materials usage, auto industry employment, and explains their inter-relation with detailed analysis. The Indian auto ancillary industry has come a long way since it had its small beginnings in the 1940s. If the evolution of the industry is traced in India, it can be classified into three distinct phases namely: period prior to the entry of Maruthi Udhyog Ltd, period after the entry of Maurthi Udhyog Ltd and period post liberalization. The period prior to the entry of Maurthi Udhyog ltd was characterized by small number of auto majors like Hindustan Motors, premier Automobiles, Telco, Bajaj, Mahindra and Mahindra, low technology and assured business for most of the auto-component manufacturers. The entry of maruti in the in the 1980s marked the beginning of the second phase of the industry. The auto ancillary industry in the country really showed a spurt in growth during this period witnessed the emergence of a new generation of auto ancillary manufacturers who were required to meet the stringent quality standards of Marutis Korean collaborator Suzuki of Japan. The good performance of Maruti resulted in a upswing for the domestic auto ancillary industry . It was during this period that auto components from India began to be exported . The entry of foreign automobile manufacturers ranging from Mercedes Benz, ford and General Motors to Daewoo following the government liberalizing the foreign investment limits
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saw the beginning of the third phase of the evolution of the industry. The auto ancillary industry witnessed huge capacity expansions and modernization initiatives in the post liberalization period. Technological collaborations and equity partnerships with world leaders in auto components became a common affair. However the global automobile majors soon realized the folly of their estimations in India . The tough competitive scenario saw a lot of consolidation in the industry and it still continues unabated. The Automobile industry in India is the seventh largest in the world with an annual production of over 2.6 million units in 2009. In 2009, India emerged as Asias fourth largest exported of automobiles, behind Japan, South Korea and Thailand. Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. Indias robust economic growth led to the further expansion of its domestic automobile market which attracted significant India-specific investment by multinational automobile manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100000 units.
2.1 Exports According to New York Times, Indias strong engineering base and expertise in the manufacturing of low-cost, fuel- efficient car has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai motors, Nissan, Toyota, Volkswagen and Suzuki. In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250000 vehicles manufactured in India plant by 2011. Similarly, general motors announced its plans to export about 50000 cars manufactured in India by 2011. 2.2 Largest automobile manufacturers in India
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Maruti Suzuki Hyundai Tata Motor Mahindra GM Chevrolet Honda HSD Ford Fiat Motor
the parent and holding company of the TVS Group. TV Sundaram Iyengar and Sons Limited has the following three divisions. TVS & Sons: TVS and Sons is the largest automobile distribution company in India. It distributes Heavy Duty Commercial Vehicles, Jeeps and Cars. TVS and Sons represent premier automotive companies like Ashok Leyland, Mahindra and Mahindra Ltd., and Honda. The company is also one of the leading logistics solution providers and has set up state-of-the-art warehouses all over the country. TVS and Sons have also diversified into distributing a range of Garage equipments. Sundaram Motors: Sundaram Motors distributes Heavy Duty Commercial Vehicles, Cars, and auto spare parts for several leading manufacturers. The company is also the dealer for Ashok Leyland, Honda, Fiat, Ford and Mercedes Benz. Madras auto Service: Madras Auto Service distributes automotive spare parts for all leading manufacturers. TVS Motor Company Ltd is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual turnover of more than USD 1 Billion in 2007-2008. Driven by this inspiration, the TVS group has today emerged as India`s leading supplier of automotive components. Today TVS group is the largest automotive component manufacturer in India, with turnover of more than USD 4 Billion. The TVS group has always been inspired by a century long mission and vision of its own density. It is not just a business but also a way of doing business, which differentiate TVS from others. The success of the group is its philosophy of commitment to the cherished values of promoting trust, value and customer service. This was the personal philosophy of the Groups Founder Shri TV Sundaram Iyengar, and its remains the overarching code by which the Group functions. 3.2 About Lucas-TVS Lucas TVS was setup in 1961 as a joint venture of Lucas Industries Pvt. Ltd, UK and TV Sundaram Iyengar & Songs (TVS), India, to manufacture Automotive Electrical systems. One of the top ten automotive component suppliers in the world, Lucas-Varity was formed by
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the merger of the Lucas Industries of the UK and the variety corporation of the US in September 1996. The company designs, manufactures and supplies advanced technology systems, products and services to the worlds automotive, diesel engine and aerospace industries. The combination of these two well-known groups has resulted in the establishment of a vibrant company, which has had a successful track record of sustained growth over the last three decades. TVS is one of Indias twenty large industrial houses with twenty-five manufacturing companies and turnover in excess of US$ 1.3 billion. The turnover of Lucas-TVS and its divisions is US$ 23.3 million in 2003-2004. Lucas Indian service Indias leading source of sales and services of auto-electrical and fuel injection equipment manufactured by Lucas-TVS in the aftermarket segment.
The other Group companies of Lucas-TVS are Delphi-TVS Diesel Systems limited Indian Nippon Electricals Limited India Japan Lighting Limited Lucas Indian Service(LIS) Aftermarket products
3.3 Mission of TVS Lucas To be a respected supplier in the global auto industries by developing innovative products and solutions of value for customers through creative skills and involvement of employees, suppliers and dealers by the use of contemporary technology. 3.4 Vision of TVS Lucas To be a recognized supplier in Asia-Pacific and Middle East markets.
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To achieve global recognition for its innovative approach to products and solutions.
By 2010, to sell 1400 products and solutions with their customers outside India. Dominant supplier to all leading vehicle manufacturers in India. Recognized supplier to Vehicle / Engine manufacturers in Europe for Starters, Alternators and Small Motors. By 2015, reach Sales turnover of Rs.3500 Crores (USD 770 Million) with a third being export sales.
3.5 Plant Location The company deliver product quickly and at competitive rate at any part of India. The production units are located in the following places : Chennai Pondicherry Haryana Chakan Uttarkhand
3.6 Lucas TVS Pondicherry Plant Lucas-TVS started the Pondicherry Plant in 1995 for manufacture of two wheeler starts. The branch on Thiruvandarkoil was started in the year 2006. It also currently manufactures ignition products and internal fan alternators. The unique feature of this plant is that it employs
mostly women workers and has cellular manufacturing methods with several Poke-Yoke features from the inception and has consistent quality record.
3.7 Products
Lucas-TVS , foremost leaders in the automotive industry today in India, serves the full spectrum of automobile sector such as passenger cars, commercial vehicles, tractors, jeep, two wheelers and off highway vehicles as well as stationery & marine applications. In facilities & services, and it is fully geared to meet the challenges of tomorrow. The product range of Lucas-TVS is
Lucas- TVS Product range for Indian Markets Starter Motor Alternator Head Lamp
Lucas-TVS Product Range for US / European Markets Starter Motor Alternator Small Motor 14 W Wiper Motor win disheild wiper Motor (GM Range) LRW Pdts.
Small Motor Wiper Motor Blower Motor Fan Motor Dynamo Regulator Dynamo Ignition Coil Distributor Diesel fuel injection
Dynamo Regulator
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Continuous reduction of warranty returns Deliver products to customers in right quantity on time, every time Providing warranty services to customers within 48 hours of receiving complaints.
3.9 Customers
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Customers Cars Maruthi Udgog Hindustan Motors Tata Engg & Locomotive Company General Motors, India Ford India Daewoo Motors Co, India Ind Auto Hyundai Motors, India
International Collaborator
General Motors, USA Ford UK Daewoo, Korea Fiat, Italy Hyundai Motors, Korea Tractors
Mahindra & Mahindra Tractors and Form Equipments (TAFF) Escorts HNT Punjab Tractors Gujarat Tractors L&T Tractors
International harvester corporation OK Mavey Jerguson, UK Ursus, Poland, Ford, UK Zetor, Czechastavakia
Regular
Direct
Male
Female Total
Grand Total
Switch
19
19
26
26
45
Motor
24
24
44
44
68
Direct
43
43
70
70
113
Indirect
21
28
16
44
G-Total
21
50
71
79
86
157
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Human potential is vast and requires the right amount of inputs to be utilized satisfactorily. Keeping this in mind, we invest significantly in upgrading our employees and their potential. Training, Skill-building & career Development are given primary importance as they all lead to all around development. Company operates a fully equipped training centre, which features a multi-skill workshop, a product knowledge centre, a CNC trainer and computer facilities. Individual skills are fine-tuned through specialized courses, both within the country and abroad. Lucas-TVS employees in every part of India share ideas and learn from each other every day. This rich diversity and cultural experience come together to inspire new technologies, design ideas that meet the needs of all our customers.
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Communicate about good environmental, health and safety practices to the employees and contractors to strengthen their involvement and accept responsibilities. Spread awareness about the importance of environmental, health and safety management among our stakeholders such as suppliers, dealers and customers.
3.13 Achievements
Lucas-TVS, a TVS group company, has bagged the prestigious Deming Application Award for the year 2004. This was announced by the Deming Prize Committee of Japanese Union of Scientists and Engineers (JUSE).
Blower and Wiper Motors. Address No.10, Kothampurinatham Main Road, Thiruvandarkoil, Pondicherry 605 102 Phone 0413-2641095 0413-2641905 Fax Website Number of Employees Registration Code 0413-2641906 www.lucastvs.com 157 PMC242
CEO is the authorizer of an organization. He fixes the rate for the manufacturing products. He plans for the development of an organization. He responsibilities to determine the cost for raw material and finished goods. CEO directs other departments to make their full efforts.
ManufacturingIn Store purchase In MaintenanceIn Quality auditor HREngineerIn Purchase Asst Asst auditor Asst stores In Quality Quality Security Engineer HRD CE maintenance Production maintenance manager charge officer charge officer charge charge manuf supplier O
4.1 HR In-Charge
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HR In-Charge handles the strategic and coherent approach to the management of an organizations most valued assets the people working there who individually and collectively contribute to the achievement of the objectives of the business. 4.2 Purchase In-Charge Purchase in-charge is responsible for purchasing the raw material for production. He takes utmost care on the quality of raw material. He carefully chooses the product supplier and checks store as production seems to play a vital role in the organization. He checks the product number code of the supplied goods by the supplier. He also provided with the security officer, HRD officer to under him in performing his work effectively. 4.3 Storage In-charge The storage in-charge is maintained by the store manager. Store manager is responsible for maintaining the various types of the product of the company. The stores manager approves the raw materials of the product for production. He takes utmost care in storing the goods. He also provided with the store in-charge asst. to assist him in performing his work effectively. 4.4 Manufacturing In-charge Manufacturing in-charge is the one, who is the internal part of the organization. He gets instructions from the CEO. He takes care of production department and work aspects related to production. Manufacturing in-charge are also 2 assist him. They are, assistant of production and manufacturing. They are also operators who reports to the manufacturing in-charge persons. Both the assistants have a separate work responsibilities.
4.5 Maintenance In-Charge All the activities of the maintenance in-charge the determine the maintenance objectives or priorities (defined as target assigned and accepted by the management and maintenance department), strategies (defined as a management method in order to achieve maintenance objectives), and responsibilities and implement them by means such as maintenance economical aspects in the organization. 4.6 Quality in-charge
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Quality in-charge is having two engineer maintenance persons. The quality in-charge will check the raw material supplied by the supplier and also checks the semi finished and finished goods. Quality in-charge must get satisfied with the quality of the product only if he gets satisfied with the product it moves for selling. 4.7 Lucas-TVS plant structure
Pondicherry plants (2) Reward Car Starter Product Product Alternator Products UttarakhandChief Export Product Wiper Product chakan Commercial Starter Executive unit unit unit plant pune Officer
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CHAPTER 5 DEPARTMENTALIZATION
In the company there are many functional departments. Each and every department functions effectively. Each department is headed by a departmental head. The superior and subordinate maintain a good relationship. The various functional departments of Lucas-TVS are as follows
Purchase Department Production Department Finance Department Human Resource Department Quality Management Department
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5.1.1 Objectives of Purchase Department To maintain flow of materials to support the development schedules. To procure materials economically at a cost consistent with the quality and service required. However, generally all purchases may be attempted at the lowest cost. To achieve a high degree of co-operation and co-ordination with other departments in the organization. To ensure the raw material procurement receipts. To develop and maintain good buyer-seller relationship.
5.1.2 Functions of Purchase Department The main functions of the purchase department are defined as follows:
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Procurement of stores through indigenous and foreign sources as required in accordance with the rules in force.
Checking of requisitions / purchase indents. Selection of suppliers for issue of enquiries Issuing enquiries / tenders and obtaining quotations Analyzing quotations and bids etc., and preparation of comparative statement (quotation charts)
Consultation with the indent or for selection and approval of quotations and with account officer for pre-audit
Negotiating contracts. Issue of purchase orders Follow-up of purchase orders for delivery in due time Verification and passing of suppliers bills to see that payments are made promptly.
Correspondence and dealing with suppliers, carriers etc., reported by the stores department.
Maintenance of purchase records Maintenance of progressive expenditure statement, sub-head wise. Clearance of foreign consignments.
5.1.3 Purchasing Process Raw material procurement planning is done in accordance with production planning for the month. Raw materials are processed from customer approved suppliers on the basis of raw materials are procurement plans for different items.
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For the requirement of materials other than raw materials, purchase requisitions are raised by respective department and forward to purchase requisitions are raised by selection of the approved suppliers is done on the basis of assessment of previously recorded and demonstrated capability and performance. 5.1.4 Structure of Purchase Department
Purchase In charge Supplie PURCHASE II r I DEPARTMENT
Fig 5.1.4 Structure of Purchase Department This chart represents the purchase department of the company. There are also two purchases in charge to assist the purchase manager. They take care of purchasing the quality raw materials. Each purchase in charge has their own responsibility. They report to the purchase management. 5.1.5 Skills required for Purchase Manager
He must possess a good knowledge of the requirement of the firm and knows the quality and grade of the requirement.
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He should obtain the right quantity and quality of the materials of the right time so that production is not hampered.
He should see the purchases are made at the most competitive price. He should see that purchases are made only against authorized purchase requisition and proper sanction.
Accep Production Rejec Enquiry to Material Purchase Material Supplier Payment to Management of Material returned to from Supplier ted department requisition inspection Analyze supplier order to Section supplierapproval 5.1.6. Purchase Process
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Step: 1 The first step to be taken by the purchase department is to receive purchase Requisition from the production unit. Purchase requisition is sent in the written form to the purchase department to make purchases. It gives the specification and quality of materials to be bought, work order number and sanction reference if applicable and the date line for the receipt of the material. Step: 2 The management should take decision for the purchase of the materials. The management will analyze their demand and consumption of unit according to the demand. The purchase order is approved only if their stock position satisfies their demands. Step: 3 After getting approval from the management the purchases department prepares the list of materials required and quality needed. If they have their existing suppliers, they will send purchase order directly to them. If they are new to the market then they have to follow the following steps. Step: 4 The purchase department should make enquiry with the supplier and get details about the quality and price of the product. By using the quotation from various suppliers, the purchasing officer
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should make a purchase analysis, and he should also see if the time of delivery is suitable to the organization. Step: 5 After the analysis of the quotation the purchasing officer has to approve the suppliers. After approval, the purchasing order to the supplier.
Maintenance of minimum possible inventory levels i.e. optimum inventory levels. Minimum cash flow. Maximum employees satisfaction in the organization. Effective utilization of available resources. Maximum possible productivity.
5.2.2 Functions of Production Department Production of goods at the right time and in sufficient quantity to meet the demand. Production of goods at minimum possible cost. Production of goods of acceptable quality. Fore casting the demand for the product and using the forecast to determine the requirement of various factors of production. Arranging for the procurement of required factors of production. Maintenance store keeping material handling inspection and quality control etc are required to attain the targeted level of production. 5.2.3 Functions of Production Manager These functions are performed in the production department of the concern. Production of goods at the right time and in sufficient quantity to meet the demand. Production of goods at minimum possible cost. Production of goods of acceptable quality.
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Forecasting the demand for the product and using the forecast to determine the requirement of various factors of production.
Maintenance store keeping material handling inspection and quality control etc. are required to attain the targeted level of production.
5.2.4 Responsibilities of Production Manager A production manager is responsible for the following functions. Product selection and design. Process selection and planning. Facilities location. Capacity planning. Production planning. Quality control. Method analysis. Inventory control. Plant layout and material handling. Working measurement. Maintenance and replacement. Cost reduction and cost control.
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Initial requisition of raw materials of required quantity at the right time. Inspection of raw materials received from stores. Keeping proper records of material.
Skills
The production managers need the following skills on comprehension
Technical competence :
1. Basic understanding of technology with which the production system works. 2. Adequate knowledge of the work they are to manager.
Behavioral competence :
Interpersonal relationships, the ability to work with other people. 5.2.6 Functions of Production Manager The major functions of productions managers may bare categorized as shown below.
Production techniques: Equipment design, process design, plan layout and shop layout, design of materials handling system.
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Capacity management: forecasting demand, delivery commitment, facility location and resources allocations.
Industrial engineering: Method study, work measurement. Production planning and control: Estimating increase casting, Routing, Scheduling, Dispatching and progressing.
Inventory control: purchasing, storing and controlling inventory level and material issue.
Maintenance: Servicing, Repairing, Break down preventive, Maintenance, Spare parts Inventory Control and Equipment replacement.
5.3 Finance Department Finance department is a department which carries out the financial activities of a concern. It provides financial in formations for making decisions about an economic entity. It deals with receivable and payables. As finance is a crucial resource of business, it is needed not only to establish it but also to ensure its survival and growth. And here lies the importance of Finance Department and its functions. Let us now look into the Finance Department of Lucas-TVS. The finance functions of LUCAS-TVS is headed by the Senior Vice President, Who Is Supported By A Team of Professionals Consists of Senior Finance Manager, Deputy Finance Manager, Senior Accounts officer, Deputy Accounts officer and a set of facilitators. LUCAS-TVS is illustrated in chart, Facilitator 1 Department) Deputy Finance Manager Senior AccountsChartFacilitator 2 Organization Manager Finance Officer Accounts Officer (Finance Facilitator 3 The finance functions carried out through the co-ordinate efforts of the Finance Department in
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In practice, Finance Department carries out two major finance functions namely, Treasury Functions and Controlling Functions These functions are illustrated in chart as,
Investmen Plannin Appraisal && & FINANCE Financ Credit TREASURY CONTROLLING Tax Account Banking auditing tcollectionFUNCTIUONS gFUNCTION e Budgeting FUNCTION
Finance studies and addresses the ways individuals, businesses and organizations raise, allocate and use monetary resources over time, taking into account the risks entailed in their projects. 5.3.1 Functions of Finance Department The three core functions of the Finance Department
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Provide strategic financial support for business and operational planning. Provide day-to-day financial services to the university, its departments, students and staffs.
5.3.2 Other functions Preparation of budget, appropriation of accounts, re-appropriations, surrender and savings. Control of expenditure and ways & means position. Treasury administration Administration of taxes i.e. sales Tax, Entertainment Tax, Luxury Tax and Entry Tax etc. Service conditions including freedom fighters pensions. Resource mobilization through loans, Institutional Finance, small Savings, Credit and Investment and public debt. Financial concurrence and advice. Compilation of codes, Rules and procedures concerning financial transactions and having bearing on state finance and their implementation. Safety and investment of funds from consolidated funds, contingency fund and public account. Contract, recovery and refund of revenue etc.
5.3.3 Role of Finance Manager The finance manager performs the set of the following roles Determines the total amount of capital required , both short-term (working capital) and long term (fixed capital). This is done by proper forecasting and planning of finance.
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Procures funds from various sources. The short-term and long-term funds should be raised from appropriate sources.
Investing the funds in assets and projects with the aim of making profit. This is to be done in such a way that the earnings are more than the cost so that there is a positive net return to the concern.
5.3.4 Return on Equity ROE = (Net Income/Sales) X (Sales/Average Assets) X (Average Assets/Average Equity) The ratio provides measures in three of the four key areas of analysis, each representing a compass bearing, pointing the way to the next stage of the investigation. The DuPont ratio is a good place to begin a financial statement analysis because it measures the return on equity (ROE). A for-profit business exists to create wealth for its owner(s). ROE is, therefore, arguably the most important of the key ratios, since it indicates the rate at which owner wealth is increasing. While the DuPont analysis is not an adequate replacement for detailed financial analysis, it provides an excellent snapshot and starting point, as will be seen below. The three components of the DuPont ratio, as represented in equation (1), cover the areas of profitability, operating efficiency and leverage (liquidity analysis needs to be conducted separately). In the following paragraphs, we examine the meaning of each of these components by calculating and comparing the DuPont ratio using the financial statements and industry standards for Atlantic Aquatic Equipment, Inc. a retailer of water sporting good. The Return on Equity (ROE) ratio is a measure of the rate of return to stockholders. Decomposing the ROE into various factors influencing company performance is often called the Du Pont system.
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www.lucastvs.com The above chart shows the Return on Equity for the year from 2000 to 2010. The Return on Equity in the year of 2007 touches the maximum level of 5.42. Then it is gradually declining and reaches the minimum value of 1.81 in the year 2009 and again it reaches on maximum level in 2010. 5.3.5. Working Capital If a company's current assets do not exceed its current liabilities, then it may run into trouble paying back creditors in the short term. The worst-case scenario is bankruptcy. A declining working capital ratio over a longer time period could also be a red flag that warrants further analysis. For example, it could be that the company's sales volumes are decreasing and, as a result, its accounts receivables number continues to get smaller and smaller. Working capital also gives investors an idea of the company's underlying operational efficiency. Money that is tied up in inventory or money that customers still owe to the company cannot be used to pay off any of the company's obligations. So, if a company is not operating in
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the most efficient manner (slow collection), it will show up as an increase in the working capital. This can be seen by comparing the working capital from one period to another; slow collection may signal an underlying problem in the company's operations.
Working Capital
The above chart is working capital chart from the period of 2000 to 2010, from the year 2004 its gradually increasing.
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COMPARATIVE BALANCE SHEET OF LUCAS TVS LIMITED AS ON 31ST MARCH 2010 AND 2009 Table: 5.3
PARTICULARS 2010 (In Rs) 2009 (In Rs)
(Rs in Lakhs)
Increase (+) or Decrease (-) in 2010 over 2008 Amt (In Rs) Percentage (%)
I. SOURCE OF FUNDS Share Capital Reserves & Surplus Total (A) LOAN FUNDS : Secured Loans Unsecured Loans Total (B) TAX LIABILITY: Deferred Tax Liability Total (C) Total (A+B+C) II. APPLICATION OF FUNDS: FIXED ASSETS: Gross Block Less: Depreciation Net Block 217719.62 95593.83 122125.79 186091.03 86800.34 99290.69 31628.59 8793.49 22835.10 17.00 10.13 23.00 21985.00 21985.00 169061.62 18835.00 18835.00 138269.80 3150.00 3150.00 30791.82 8.88 8.88 22.27 68504.26 12140.83 80645.09 47060.39 8373.43 55433.82 21443.87 3767.40 25211.27 45.57 44.99 45.48 6937.78 59493.75 66431.53 6937.78 57063.2 64000.98 0.00 2430.55 2430.55 0.00 4.26 3.80
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Add: Capital Work in progress Total Fixed Assets(D) INVESTMENT: Total Long Term Investment (E) CURRENT ASSET, LOANS ADVANCES: Inventories Sundry Debtors Cash & Bank Balance Loans and Advances Total Current Asset (1) CURRENT LIABILITIES & PROVISIONS: Current Liabilities Provisions Total Current Liabilities (2) Net Current Assets (1-2)-(F) Total Miscellaneous Expenditure (G) Grand Total Assets (D+E+F+G)
26269.71 148395.53
29070.30 128360.99
(2800.59) 20034.54
(9.63) 15.61
114.05
1715.42
(1601.37)
(93.35)
INTERPRETATION:
1. The fixed assets have increased by Rs.31628.59 lakhs. There is no issue in share capital.
2. The secured loan amount of Rs.21443.87 lakhs of amount borrowed by the company. The amount secured in fixed assets. 3. The current assets to be increased by 35.08%. The current liabilities are increased by 4.34%. The company makes effective working capital transactions.
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4. The cash and bank balances have reduced by Rs.537.27 lakhs. That means the cash balances
reduced by 23.32%. The company must makes the short term funds to manage the short term requirements. 5. The tax liabilities increased by 8.88%. 6. The company increased the reserves in Rs.2430.55 lakhs. The amount also invested in fixed assets.
5.4.1 Main Function of the HR Department Identifying training needs Impacting the required training
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HRD organizes training programs using internal faulty or engaging faculties from reputed organizations. The department in consultation with concerned department heads to organize house training programs. 5.4.2 Various Training Programmes
1. General Training In order to provide this type of training, one has to determine what would be the trainees growth potentials, up to what level he can grow in the organization etc. A performance appraisal has to be done to evaluate his present performance. Training is given on the basis of appraisal. 2. Need Based Training Need based training will be done o the basis of determining the level of knowledge and skill one requires for a particular job. Next is to find out how many employees have to be given this training. On the basis of these needs training is given to the employees. 3.Induction Training It is the training provided to the newly recruited employees to familiarize with the activities, rules, policies of the organization. It is also done to introduce the new employees to the other employees of the organization.
4. Technology Training Company provides advanced training for workers to cope up with the technological changes. Feed back is obtained from employees and the effectiveness of the training programme is ascertained after a period of 2-3 months. 5.4.3 Purpose and role of HR Manager in Lucas-TVS In simple terms, an organization's human resource management strategy should maximize return on investment in the organization's human capital and minimize financial risk. HR managers seek to achieve this by aligning the supply of skilled and qualified individuals and the capabilities of the current workforce, with the organizations ongoing and
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future business plans and requirements to maximize return on investment and secure future survival and success. In ensuring such objectives are achieved, the human resource function is to implement an organization's human resource requirements effectively, taking into account federal, state and local labor laws and regulations; ethical business practices; and net cost, in a manner that maximizes, as far as possible, employee motivation, commitment and productivity.
5.4.4 Factors affecting Human Resources plan Several factors affect HRP. These factors can be classified into external factors and internal factors. Factors Affecting HRP External Factors Internal Factors
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- Government policies - Level of Economic Development Including future supply of HRs -Business Environment -Information Technology -Level of Technology -Natural Factors
-Strategies of the company - Human Resources Policy of the company - Formal and Informal Group - Job Analysis - Time Horizons - Type and Quality of Information
-International Factors
- Companys Production Operation Policy - Trade Union Fig: 5.4.4 Factors Affecting - HRP
5.4.5 Human Resource Functions in Lucas-TVS The following are some of the Human Resource functions in the organization.
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EMPLOYMENT TRAINING & HUMAN DEVELOPMENT RESOURCES Devising Programs : PLANNING Recruitment Hourly Workers Selection Forecasting Managerial Staff Testing Skills Training Primary Maintaining personnel Advanced Skills inventories Orientation Training Succession planning Promoting diversity Modeling career paths
COMPENSATION EMPLOYEE LABOR RELATIONS BENEFITS Administering: Instituting laborDesign of vacation Incentive pay plans management & sick benefits Job analysis Job evaluations program Cooperative Wages Surveys Administering programs Performance reviews policy Hearing employee 40lk plan concerns and complaints Health insurance Monitoring morale
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DISCIPLINE PERSONNEL SAFTEY RESEARCH Ensuring OSHA Formulation and compliance Administering opinion coordination of Overseeing security Physical Environment surveys policies Conducting accident Conducting HR audits Assistance and investigations Publishing statistical advice in major analysis disciplinary actions
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MEDICAL & HEALTH HR AUDITS EQUAL EMPLOYMENT OPPORTUNITY Conducting health and Employee turnover Ensuring EEO compliance wellness programs Administering affirmative Grievances action Attendances Handling Accidents Compliance with federal and state regulations
5.4.6 Human Resource Planning Human resources planning is the process by which an organization ensure that it has the right number and kind of people, at the right place, at the right times, capable of effectively
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and efficiently completing those that will help the organization achieve its overall objectives.
5.4.7 Key Functions of HR Manager in Lucas-TVS HR Manager may set strategies and develop policies, standards, systems, and processes that implement these strategies in a whole range of areas. The following are typical of a wide range of Lucas-TVS:
Maintaining awareness of and compliance with local, state and federal labor laws Recruitment, selection, and on boarding (resourcing) Employee record-keeping and confidentiality Organizational design and development Business transformation and change management Performance, conduct and behavior management Industrial and employee relations Human resources analysis and workforce personnel data management Compensation and employee benefit management Training and development Employee motivation and morale-building.
Implementation of such policies, processes or standards may be directly managed by the HR function itself, or the function may indirectly supervise the implementation of such activities by managers, other business functions or via third-party external partner organizations. Applicable legal issues, such as the potential for disparate treatment and disparate impact, are also extremely important to HR managers. 5.4.8 Duties of the HR Manager Co-ordination in preparation of manpower plan. Recommendations for increments of general manager. Recommendations for promotion to general manager. Deputing employees for training.
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Accepting resignations and appointment of contractors. 5.4.9 Responsibilities of the HR Manager Employees grievance handling Preparation of training calendar. Co-ordination of training programmer. Authorization of labor training assistant. Maintenance of labor training assistant registers.
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Money of Men Material Machine Tools Measurement Quality Department Fig: 5.5.3
Fig: 5.5.3 Tools of Quality Department This chart represents the tools of quality department and it is known as fish diagram.
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10. Tea, Medical, Canteen, Transport facilities are available to all the workers in the
Conclusion After the organizational study in Lucas-TVS, it gives the various measures that can be carried out in the organization in order to bring in upliftment of the company as well as the workers. This study clearly states that the functional departments in Lucas-TVS are interrelated with each other. Social security scheme as well as welfare measures that are undertaken by the company are appreciable. These measures are not only for the company but also for the employees through satisfaction levels a company can ascertain whether an employee has shown his/her best performance on given job. Welfare measures of the employees should be taken seriously by the top management to improve the satisfaction level by providing various benefits and facilities to them. Through this training in Lucas-TVS, I was able to gain new insights and more comprehensive understanding about the real industry working condition & practice. With this training Lucas-TVS gives more knowledge about how to manage the workers, how tackle and taking decisions at correct time without affecting anyone in the organization.
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BIBILOGRAPHY
1. Aswathappa, K., Human resource and Personnel management, TATA McGraw- HILL. 2. Arun monappa and Saiyadain, Mirza S., Personnel management, TATA McGraw- HILL. 3. Flippo, Edwin B., Personnel management, McGRAW-HILL International Publications. 4. Reimann (1989) published his work, ROE was used extensively for measuring whether value was being created for shareholders.(Seminar Paper). 5. Ghanbari,M.Ali and Sarlak,Narges (2006),Economic Value Added: An Appropriate Performance Measure in the Indian Automobile Industry, The Icfain Journal of Management Research, Vol.V,No.8,March 2006,pp.45-57.
WEB SITE
1. www.lucastvs.com 2. www.findarticles.com 3. www.gradschool.about.com 4. www.articles.com
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