CHAPTER 1 INTRODUCTION 1.

1 Introduction to the study

Organizational Functioning is an important factor for any Organization to achieve the desired goals and Objectives. This requires Co-ordination at all levels to smooth functioning. This report aims to understand the Function of Lucas-TVS relation to different departments As a part of two year MBA program at the end of 1st year, we had to carry on internship in an organization in order to understand the organization structure and their functions. This was a great opportunity to get the information and understand the functioning of the various departments. I did my organization study at Lucas-TVS. It was a great learning experience as it is quite necessary for all the management students. The main purpose of doing the organization study was to know the functional activities in various departments of the organization and understand their basic functions, their purpose, achievements, competitors and the mission and vision of the company and their progress. All general information we get in course is all book knowledge, on which we entirely cannot depend. It is very important to observe the actual working of an organization and the overall structure of an organization. The actual professionalism can be studied only through experience. 1.2 Objective of the Internship The main objective of the study is to know in detail about the importance of all the departments in the organization. The study concentrates on over all activities carried out in each and every department in Lucas- TVS. To study performance of Lucas- TVS Ltd with the combinations of all the Functional Departments such as HR, Finance, Quality, Maintenance and Purchase. To find out all the activities and functions performed in the all the departments in the Lucas- TVS.

CHAPTER 2 INDUSTRY PROFILE

Horses had dreams of them since time immemorial, but it was only in the 18th 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. 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 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 Maruti Suzuki Hyundai Tata Motor Mahindra GM Chevrolet Honda HSD Ford Fiat Motor

CHAPTER 3 PROFILE OF THE COMPANY

3.1 The TVS Group The TVS Group was formed in the year 1911 by Shri.T.V.Sundaram Iyengar. Currently the group is Indias largest Auto component manufacturer and leading exporter. The group is known for setting standards as market leaders and the culture is strongly built around customer focus, employee involvement, innovation and ethical practices. The group annual sales turnover exceeds US$ 2.8 Billion with 32 companies under its fold employing around 25000 persons. TVS Group is one of India's oldest business groups. It is a giant conglomerate with presence in diverse fields like automotive component manufacturing, automotive dealerships and electronics. TVS Group was originated as a transport company, TV Sundaram Iyengar and Sons Limited is 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
6

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 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 y y To be a recognized supplier in Asia-Pacific and Middle East markets. To achieve global recognition for its innovative approach to products and solutions. y y y y 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.

Fig:3.6- Lucas TVS Plant www.lucastvs.com

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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

Dynamo Auto electrical

Table: 3.7 - Products

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Starter Motors Fig: 3.7.1

Fig: 3.7.1 - Starter Motors www.lucastvs.com

Fig: 3.7.2 Wiper Motor www.lucastvs.com

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Fig: 3.7.3 Small Motors www.lucastvs.com

3.8 Quality Policy of the Company

To Achieve increasing levels of customer satisfaction through continual improvement of quality of their products and services by continually improving the effectiveness of quality management system.

3.8.1 Quality Objectives

y y y 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.

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3.9 Customers

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

Suzuki, Japan Isuzu, Japan, Mitswoisni, Japan

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

Zetor, Czechaslovakia Johndeer, USA

Table: 3.9 - Customers

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3.10 EMPLOYEE STRENGTH

The total work force is around 157.

Regular

Short Term Training

Direct

Male Female Total

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

Table: 3.10 Employee Strength

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3.11 TRAINING AND DEVELOPMENT

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.

3.12 Environmental, Health & Safety Policy

Lucas-TVS designs and manufactures Auto-electrical equipment for supply to the automotive industries. As a responsible corporate entity, the company is committed to protection, preservation and improvement of the environment, occupational health and safety of its employees and contractors by continually orienting its activities, products and services so as to : Eliminate, Minimize and control adverse environmental impacts, occupational health and safety risks at all levels and functions  Institutionalize adoption of environment friendly, health and safety concepts while designing our products and processes  Conserve resources by applying 3 R concepts (reduce, reuse and recycle) and minimize generation of inevitable wastes.  Prevent incidents and ensure safe and healthy work place.  Improving working environment through good housekeeping taking proactive measures for the health an safety of our employees, contractors and visitors.
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 Comply with all relevant legal and other requirements.  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).

Fig: 3.13(a) PPM Award

Fig: 3.13(b) Deming Application Prize

3.14 Certificate and Awards

y In 2007 Outstanding supplier & excellence performance was Award by CUMMINS INDIA LIMITED y y Best supplier Award from Maruti udyog as well as Honda Best quality Award from Mahindra Tractor Division
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Over all Best performance Award from Hyundai Motor

PROFILE OF THE COMPANY

Company Name Founder Year of Starting Nature of Work LUCAS TVS Shri T.V.Sundaram Iyengar 2006 Manufacture and Services of Switches,

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

Table: 3.15 Profile of the Company

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CHAPTER 4 ORGANIZATIONAL STRUCTURE

CEO 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.

CEO

HR In charge

Purchase In charge

Store In charge

Manufacturing In charge

Quality In charge

Maintenance In charge

Security officer

Asst purchase manager

Asst stores In charge

Asst Production

Engineer maintenance

Engineer maintenance

HRD officer

Quality auditor supplier

Quality auditor manuf

Fig 4 Organizational Structure

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4.1 HR In-Charge 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
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objectives), and responsibilities and implement them by means such as maintenance economical aspects in the organization. 4.6 Quality in-charge 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

Chief Executive Officer

Alternator Product unit

Commercial Starter Product unit

Car Starter Products unit

Wiper Product unit

Export Product unit

Pondicherry plants (2) Reward plant

Uttarakhand chakan - pune

Fig: 4.7 Lucas TVS Plant Structure

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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 y y y y y Purchase Department Production Department Finance Department Human Resource Department Quality Management Department

FUNCTIONAL DEPARTMENTS

Purchase Department

Production Department

Finance Department

HR Department

Quality Management

Fig: 5 Functional Department

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5.1 Purchase Department

Purchasing is the most important function of material management. The material planning function determines the requirements of raw materials parts, components, spare parts etc. needed for production and takes decision regarding. y y y Specification of goods Quantity of goods Time to order goods

5.1.1 Objectives of Purchase Department y y 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. y To achieve a high degree of co-operation and co-ordination with other departments in the organization. y y 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: y Procurement of stores through indigenous and foreign sources as required in accordance with the rules in force. y y Checking of requisitions / purchase indents. Selection of suppliers for issue of enquiries
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y y

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

y y y y

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.

y y y

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. 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.
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5.1.4 Structure of Purchase Department

PURCHASE DEPARTMENT

Purchase In charge I

Purchase In charge II

Supplier

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.  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.  He must know the source of supply of needed store items.
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5.1.6. Purchase Process Production Section

Purchase requisition

Management of approval

Purchase department

Enquiry to supplier

Purchase Analyze

Supplier approval

Purchase order to

Material from supplier

Material inspection

Accepted

Rejected

Payment to Supplier Fig: 5.1.6 Purchase Process

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Material returned to supplier

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 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.

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5.2 Production Department

Any process which involves the conversion of raw material and bought out components into finished products for sale is known as production. Production management is also referred to as operations management. Production implies the creation of goods and service to satisfy human needs. It involves conservation of inputs (resources) into outputs (products). It is the process by which raw materials are converted into finished products. Any process which involves the product for sale is known as production. Production is a creation of utility. The production function creates utility by providing from, time and place utilities for the produced goods. Manufacturing provides from utility while physical distribution provides the time and place utilities. 5.2.1 Objectives of Production Department y The primary objective of production department in maximization of customer satisfaction through quality, reliability, cost and delivery time. y It focuses the material standing by minimum rejection / rework resulting in better quality. y y y y y y y Maximization of profit and return on investment. Optimum utilization in an effective, manner. 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.
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5.2.2 Functions of Production Department y Production of goods at the right time and in sufficient quantity to meet the demand. y y y 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. y y 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. y Production of goods at the right time and in sufficient quantity to meet the demand. y y y Production of goods at minimum possible cost. Production of goods of acceptable quality. Forecasting the demand for the product and using the forecast to determine the requirement of various factors of production. y Maintenance store keeping material handling inspection and quality control etc. are required to attain the targeted level of production.

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5.2.4 Responsibilities of Production Manager A production manager is responsible for the following functions. y y y y y y y y y y y y 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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5.2.5 Duties and skills of Production Manager Duties

Production manager plays a very crucial role in optimum utilization of raw materials reducing material losses by performing the following aspects they are. y y y 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

y Technical competence :
1. Basic understanding of technology with which the production system works. 2. Adequate knowledge of the work they are to manager.

y 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. y Production techniques: Equipment design, process design, plan layout and shop layout, design of materials handling system. y Capacity management: forecasting demand, delivery commitment, facility location and resources allocations.
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y y

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.

Fig: 5.2.6 Assembly Unit www.automotivehorzor.com

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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. The

finance functions carried out through the co-ordinate efforts of the Finance Department in LUCAS-TVS is illustrated in chart,

Organization Chart

(Finance Department)
Senior Finance Manager

Deputy Finance Manager Senior Accounts Officer Deputy Accounts Officer Facilitator 1 Facilitator 2 Fig: 5.3(a) Organization Chart Facilitator 3

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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,

FINANCE FUNCTIUONS

TREASURY FUNCTION

CONTROLLING FUNCTION

Finan ce

Investment

Banking

Credit & collection

Planning

Account & Budgeting

Appraisal & auditing

Tax

Fig: 5.3(b) Finance 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 y y Provide strategic financial support for business and operational planning. Provide day-to-day financial services to the university, its departments, students and staffs. y Meet external and internal financial reporting requirements.

5.3.2 Other functions

33

Preparation of budget, appropriation of accounts, re-appropriations, surrender and savings.

y y y y y

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.

y y

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 y 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. y Procures funds from various sources. The short-term and long-term funds should be raised from appropriate sources. y 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.
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Negotiates with bankers, financial institutions and other suppliers of credit.

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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Fig: 5.3.4 ROE

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 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.
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Working Capital

www.lucastvs.com Fig: 5.3.5 - 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 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)

6937.78 59493.75 66431.53 68504.26 12140.83 80645.09 21985.00 21985.00 169061.62

6937.78 57063.2 64000.98 47060.39 8373.43 55433.82 18835.00 18835.00 138269.80

0.00 2430.55 2430.55 21443.87 3767.40 25211.27 3150.00 3150.00 30791.82

0.00 4.26 3.80 45.57 44.99 45.48 8.88 8.88 22.27

217719.62 95593.83 122125.79 26269.71 148395.53 114.05 19639.21 16973.83 1767.15 14368.87 52749.06 22105.65 10091.37 32197.02 20552.04 0.00 169061.62
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186091.03 86800.34 99290.69 29070.30 128360.99 1715.42 14726.46 9856.46 2304.42 12164.11 39051.45 23260.74 7597.32 30858.06 8193.39 0.00 138269.80

31628.59 8793.49 22835.10 (2800.59) 20034.54 (1601.37) 4912.75 7117.37 (537.27) 2204.76 13697.61 (1155.09) 2494.05 1338.96 12358.65 0.00 30791.82

17.00 10.13 23.00 (9.63) 15.61 (93.35) 33.36 72.21 (23.32) 18.13 35.08 4.97 32.83 4.34 150.84 0.00 22.27

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. 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.

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5.4 HUMAN RESOURCE DEPARTMENT

Human resource is considered as the most vital asset of an organization. Lucas-TVS has a well defined employee power. It helps the organization to perform well in the market. Personnel department is headed by Manager, HRD, who organizes the training programs for workers and managerial staff. The Manager HRD is responsible only for training and development. MHRD does not come under the personnel department for workers and managerial staff.

5.4.1 Main Function of the HR Department y y y Identifying training needs Impacting the required training Maintaining the training records

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.

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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 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.

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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

- Government policies

-Strategies of the company

- Level of Economic Development Including future supply of HRs

- Human Resources Policy of the company

-Business Environment

- Formal and Informal Group

-Information Technology

- Job Analysis

-Level of Technology

- Time Horizons

-Natural Factors

- Type and Quality of Information

-International Factors

- Companys Production Operation Policy

- Trade Union Fig: 5.4.4 Factors Affecting - HRP

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5.4.5 Human Resource Functions in Lucas-TVS The following are some of the Human Resource functions in the organization.

HUMAN RESOURCES PLANNING

EMPLOYMENT

TRAINING & DEVELOPMENT Devising Programs : Hourly Workers Managerial Staff Primary Skills Training Advanced Skills Training Promoting diversity

Recruitment Selection

Forecasting Maintaining personnel inventories Succession planning Modeling career paths

Testing Orientation

COMPENSATION

LABOR RELATIONS

EMPLOYEE BENEFITS Design of vacation & sick benefits program Administering policy 40lk plan Health insurance

Administering: Incentive pay plans Job analysis Job evaluations Wages Surveys Performance reviews

Instituting labormanagement Cooperative programs Hearing employee concerns and complaints

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SAFTEY

PERSONNEL RESEARCH

DISCIPLINE

Formulation and Ensuring OSHA compliance Overseeing security Physical Environment Conducting accident investigations Administering opinion surveys Conducting HR audits Publishing statistical analysis coordination of policies Assistance and advice in major disciplinary actions

EQUAL EMPLOYMENT OPPORTUNITY

MEDICAL & HEALTH

HR AUDITS

Conducting health and wellness Ensuring EEO compliance Administering affirmative action Handling programs

Employee turnover Grievances Attendances Accidents Compliance with federal and state

Table: 5.4.5 - Human Resource Functions

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 and efficiently completing those that will help the organization achieve its overall objectives.

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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:
y y y y y y y y y y y

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.  Accepting resignations and appointment of contractors.

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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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5.5 QUALITY MANAGEMENT

5.5.1 Quality Goals  Every new product or product release must have better quality than its predecessor.  The corporate quality organization with the assistance of the software groups will establish the quality measures to be used.  Each product manager is responsible for producing a documented quality plan so meet these goals.  Product quality performance will be judged by the degree to which quality plans show improvement.  The effectiveness of the plans, product managements willingness to establish more aggressive goals.

5.5.2 Quality Plans The quality plan documents the quality action management intends to implement. It includes the derivation of the quality measures, the identification of the planned process changes and the anticipated quality improvements. They are mainly actions that can be taken to improve quality and most effective generally concerned defect prevention rather removals.

5.5.3 Quality Control A reputation for quality being good or bad is not by there chance or coincidence, but it is result of the policy of the company in respect of designing, establishing, maintaining the quality programmes. To make such quality programmes operationally effective the company has to exercise a good control over them in order to achieve the quality goals.

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Fig: 5.5.3 Men Money Material

Tools of Quality Department Machine Measurement

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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SUMMARY OF LEARNING OUTCOME AND CONCLUSION

Leaning Outcome of the Study 1. The workers in the Lucas-TVS are being provided with temporary relief until final decision is taken. 2. The supervisors are highly skilled that is the supervisors possess necessary human relation skills. 3. Most of the people in the Lucas-TVS were aware of the various committees that are framed for redressing their grievance. 4. All the workers are highly satisfied towards the decision given by the management. 5. Employees & Subordinates communicate to their co-workers. It is their informal channel. 6. Many of the people agree that mechanism being followed resolves their grievance. 7. Members of the Lucas-TVS strongly agree that discussion and conference is facilitated rather than executive authority. 8. 45% of the workers redress their grievance through committee members. 9. All the Employees in Lucas-TVS are qualified up to higher secondary education.

10. Tea, Medical, Canteen, Transport facilities are available to all the workers in the organization. 11. There is regular follow up is conducted to ensure whether the right decision is given or not. 12. All the workers were agreed that supervisor is given authority to take action necessary to resolve the problem. 13. When there is deviation in the real basis identification it will be reflected in the level of Satisfaction regarding decision given in the organization. 14. Most of the employees working in Lucas-TVS Thiruvandarkoil branch were womens.

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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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