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ORGANIZATIONAL STUDY AT KAR MOBILES LIMITED

INTRODUCTION

1.1 Background of the Study:


Organization is set of people working together for accomplishment of a common objective. The roles and responsibilities are stated clearly without any ambiguity. The positions occupied by different individuals are presented in the form of organization chart. Organizational structure is essential for continuity of the mission and co-ordinates and controls the business activities. Organization helps management to perform its activities effectively, optimum use of technology improvement growth and diversification, creativity, effective use of physical resources and HR.

1.2 Need for the Study:


This study is taken up to fulfill the requirements of M.B.A degree course of Bangalore University. The training is undertaken during august 2011 to September 2011 and the main purpose of the training is to know the application of the theoretical aspects in our course in the corporate environment and gain firsthand experience and expose ourselves to corporate policies, ethics, culture, practices, procedures, facts about the work culture and policies of the company.

1.3 Scope of the Study:


This report is based on the study conducted by Kar Mobiles Limited, Bangalore. It aims at understanding the companys establishment, organization structure, departments, production techniques, marketing strategies and the advantages it is having over the competitors. An attempt is made to analyze the companys performance in comparison to the theoretical aspects. It aims to understand the skills of the company in the areas like technological advancements, competition and in management

1.4 Limitation of the Study:


Time limit is a major constraint. As per the company rules many information may not disclosed. As the managers are busy in their daily schedules it is not possible for us to spend more time in interaction and discussion with them.

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1.5 Methodology Adopted for the Study:
Observing the working of various departments like finance, safety, human resource, production, purchasing etc Discussion with the company executive managers and employees. Visiting and surfing websites of the company

1.6 Sources of Data:


Primary data Secondary data

Primary Data The data collected for the first time through observation and interview method. The data is collected by observing the various departments and also by interviewing the managers of all the departments. It is also obtained by the help of staff members. Secondary Data The data is collected by secondary sources also. The data is collected through company manual, product brochure, company website and annual report.

1.7 Objectives of the Study:


The main objectives of undergoing this internship training are to get the practical exposure of the functional departments of the organization. Such as marketing, production, finance, human resource department and to know how the theoretical knowledge is practically applied in different departments of the organization. To have practical orientation of the various department of the company To analyze the performance of the company To understand the application of theoretical concepts into business decision in organization To understand the aspects of delegations of the authority, responsibilities, co-ordination, teamwork etc To integrate practical experience with theoretical concepts To gain all round view of management operation To know the policies and procedures adapted by company in all the fields To get exposure of organization culture and organization environment To understand how organization function effectively To know the marketing strategy adopted by the company To generate new ideas and give suggestions
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INDUSTRY PROFILE 2.1 Industry Overview:
The Indian auto component industry is one of India's sunrise industries with tremendous growth prospects. From a low-key supplier providing components to the domestic market, the industry has emerged as one of the key auto components centers in Asia and is today seen as a significant player in the global automotive supply chain. India is now a supplier of a range of high-value and critical automobile components to global auto makers such as General Motors, Toyota, Ford and Volkswagen, amongst others. India has a good network of manufacturers of Auto components and spares spread all over the country. These component manufacturers also manufacture all kinds of parts for all Indian vehicles apart from Japanese, German and continental vehicles. They have the capacity to design as per clients specifications/drawing to provide them quality service. The Indian auto component industry is one of the few sectors in the economy that has a distinct global competitive advantage in terms of cost and quality. The value in sourcing auto components from India includes low labor cost, raw material availability, technically skilled manpower and quality assurance. An average cost reduction of nearly 25-30% has attracted several global automobile manufacturers to set base since 1991. Indias process-engineering skills, applied to redesigning of production processes, have enabled reduction in manufacturing costs of components. Today, India has become the outsourcing hub for several global automobile manufacturers. Innovation and cost pruning hold the key to meet the global challenge of rising demand from developed countries and competition from other emerging economies. Several large Indian auto component manufacturers are already gearing to this new reality and are in the process of substantially investing in capacity expansion, establishing partnerships in India and abroad, acquiring companies overseas and setting up Greenfield ventures, R&D facilities and design capabilities. As per an Automotive Component Manufacturers Association of India (ACMA) report, the turnover of the auto component industry was estimated at over US$ 30 billion in 2010-11. The industry's turnover is likely to touch US$ 40 billion by 2015-16. The potential compounded annual growth rate (CAGR) of the auto component industry is estimated to be 11 per cent in the period 2008-15. Exports from the auto component industry is estimated to be worth US$ 5 billion in 2010-11, recording a rise of 32% per cent over the previous fiscal, according to an ACMA report.

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North America accounted for 24% of India's auto components exports by 2020, followed by Asia at 28.1%. The industry has witnessed a shift in the composition of exports over the years, with the original equipment manufacturer (OEM/TIER 1) segment accounting for 80% of exports in 2010. The share of aftermarket segment in auto component exports stood at 20% in the same year. Investments in the auto component industry are estimated at US$ 10.3 billion in 2010-11, according to ACMA. Some leading manufacturers of auto components in India include Motor Industries Company of India, Bharat Forge, Sundaram Fasteners, Wheels India, Amtek Auto, Motherson Sumi, Rico Auto and Subros. The Indias Top 500 Companies, published by Dun & Bradstreet in 2009, listed 22 auto component manufacturers as top companies in India with a total turnover of US$ 3 bn. These companies are in the process of making a mark on the global arena, and some have already acquired assets abroad... Auto ancillary industry caters to three broad categories of the market: Original Equipment Manufacturers (OEM) or vehicle manufacturers that comprises of 25% of total demand. Replacement market that comprises 65% of the total demand Export market which comprises primarily of International Tier I suppliers and constitutes 10% of total demand.

2.2 Product Classification:


The auto ancillary industry can be further divided into six main segments: Table 1.1 Showing Segments of Auto Ancillary Industry:

Engine Parts

Piston, piston rings, engine valves, fuel pumps, carburetors and bimetal bearings

Electrical Parts

Starter motors, generators and spark plug Gears, steering gears and system, wheel, clutch plate and disc

Transmission and steering

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Suspension and braking Leaf springs, shock absorbers, brake assembly and facings Equipment Others Head light and dashboard instruments Sheet metal parts, pressure disc castings

The range of products manufactured with each broad product segment having different market structure and technology has negated any possible concentration of the market in a few hands. The market is so large and diverse that a large number of players can be absorbed to accommodate buyer needs. However there are a selected few large companies that have integrated their operations across the value chain. The key to competing in this industry is through specialization by product type and integrating operations across the related area of specialization.

Graph 1.1 Showing Auto Components Product Segments:

Auto Components Product Range


engine parts 7% 9% 31% 10% suspesion and braking parts 12% 19% equipments 12% electrical parts others drive transmission and steering parts body and charsis

The Indian auto component industry is poised for robust growth till 2010. There is a perceptive exuberance in the industry and growth estimates indicate a booming industry. The production of auto components could grow to US$ 110 billion by 2020. Expected growth in production and exports of auto components is shown in the chart below.

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Table 1.2 Showing Foreign Acquisitions by Indian Companies:
Acquired Foreign Acquisitions by Indian Companies CDP Aluminiumtechnik Federal Forge Imatra Kilsta AB Scottish Stampings Ltd WOCO Group Motherson Sumi G&S Kunststofftechnik GmBH GWK Amtek Auto New Smith Jones Inc Zelter Bleisthal Produktions GmBH Sundaram Fasteners Cramlington Forge CDP GmBH EL Forge TVS Autolec Sona Koyo Shakespeare Forgings RBI Autoparts SND BHD Fuji Autotech Germany UK USA Germany Germany UK Germany UK Malaysia France

Indian Company

Country Germany USA Sweden Scotland Germany

Source: Auto Component Manufacturers Association.

2.3 According to ACMA:


Auto-Component Sector needs US$ 1.5 billion of new investments every year for next 8 years. Overseas auto-component manufacturers, especially small and medium enterprises (SMEs) should invest more in capacity enhancements and Greenfield manufacturing in India to meet growing domestic demand for auto-components. Investments in Auto-IT sector is a high potential area. To encourage new wave of partnerships at the Tier 2/3 level covering the entire automotive supply chain to address not only product technology, but also Process Technology.

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2.4 Industry & Market Analysis: Political Factors
Liberalization & Globalization. Change in policies due to change in ruling party. Industrial Development. Policy on international trade leading to international competition. Policy on labor reforms. Disappearing trade barriers.

Economic Factors
Level of inflation & interest rates. Level of taxation, both direct & indirect. Fluctuating exchange rates Rupee becoming stronger. Increasing disposable domestic incomes. Booming automotive industry. Steel industry becoming stronger across the globe. Uncertainty on availability of export incentives. Railways increasing their capacity & efficiency.

Social Factors
Increasing population. Changes in life styles. Changes in Employee values. Pollution and environmental issues.

Technical Factors
Industry-wide innovation. Products with longer life cycles. Transport infrastructure. Improved communications. Information technology.

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2.5 Industry Prospects:
Looking forward, the industry displays tremendous potential in generating employment and boosting entrepreneurship in the country. The spate of new investment plans announced by global and domestic automobile manufacturers promises the emergence of India as a global and domestic automobile manufacturers promise the emergence of India as a global hub for auto components. The industry is transforming and the boosts in demand will see the emergence of several new players in the industry. The vast market for auto components, and diverse products and technology involved ensures a play role for many. At the same time, the entry of several global automobile manufacturers will bring in more regulations into the industry and see a pruning of the spurious market, among the smaller players in the unorganized segment, this implies moving away from being standalone companies, to entering into either contract manufacturing or bearing ancillary units. The newly defined rules are specialization, development and delivery that hold the key to success in the auto component industry.

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COMPANY PROFILE
Kar Mobiles limited manufactures valves for internal combustion engines. The company manufactures valve of all sizes and ranges used in various vehicles like motorcycles, cars, trucks, railways, engines, defense tanks, generator sets and marine engines.

3.1 History:
KAR Valves Limited was born out of an Electric Supply undertaking in old Maharajas state of Cochin under the name of Cochin State Power and Light Corporation Ltd. The company was started in the year 1936 and was engaged in distribution of electricity. In 1971 this business was nationalized. Company received compensation and the shareholders decide to invest in new business activity. Sri S Venkararaman, MD of Cochin State Power & Light Corporation Ltd. and Sri L.L. Narayan MD of Engine Valve manufacturing facility in Karnataka in collaboration with Engine Valves Ltd., Madras and selected the present location in Peenya in year 1972. The company was named as KAR VALVES LIMITED and incorporated in the year 1972 under the Indian Companies Act, with a licensed capacity of 6.5 million to 8.5 million valves per annum. The company commenced its commercial production in the year 1975 and the first invoice was made on 12/03/1975 to M/s Conwest Private Limited. In 1976, the emergency and slump in the market compelled the company to develop other market. Large valves for diesel loco applications and export came into focus. In the year 1980, this success led the company to expand its licensed capacity from 6.5 million to 8.5 million valves per annum. By 1981 the company had become the single sources suppliers of valves to the UK customers. At this juncture exploiting the then government of India policy and with the ore sightedness of Sri V.P. Aghoram, the company identified overseas market as a biggest opportunity to grow. To achieve this, a 100% export oriented unit was setup at Tumkur.

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3.2 ORGANISATIONAL CHART ON RANE GROUP OF COMPANIES:

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3.3 RANE GROUP 0F COMPANIES:

Sl.No .

Company

Products

Kar Mobiles Limited (KML)

Medium & Large Valves for diesel engines. Specialize in Locomotive, Power generation, Off-road vehicles & defense applications.

Rane Brake Linings Limited (RBL)

Brake linings, Disc pads, Composite brake blocks, Clutch facings

3 4 5 6

Rane Diecast Limited (RDL) Rane Engine Valve Limited (REVL) Rane (Madras) Limited (RML) Rane NSK Steering Systems Limited (RNSSL)

High Pressure Die Casting Products Valves, Valve Guides, Tappets Manual Steering & Suspension Systems Energy Absorbing Steering Columns

Rane TRW Steering Systems Limited (RTSSL)

Power Steering Systems & Seat Belt Systems

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WHY THE NAME KAR MOBILES? Some inceptions that since the factory is situated in the Karnataka, the first three letters were taken. Some interpreted that since the company is in manufacturing valves of cars, the work KAR which is synonymous to CAR was selected.

KAR MOBILES STAND FOR: K - KNOWLEDGE A - APPLICATIONS R - RELIABILITY M - MOTIVATION O OPPURTUNITY B - BRILLIANCE I - INNOVATION L - LEADERSHIP E - EXCELLENCE S-SERVICE

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KAR MOBILES LIMITED, Bangalore: The Bangalore-based Kar Mobiles Limited (KML) set up its factory to manufacture valves for internal combustion engines in 1973-74. Commercial production commenced in 1974. In 1978-79, it implemented a project to expand its capacity from 1.5 million to 3 million per annum which was again increased to 5 million per annum in 1980-81. Having successfully established itself in the domestic market as a quality manufacturer of valves for internal combustion engines, it entered the export market in 1977. Its first customer was Lister Petter, UK, with whom it started business in 1977. Currently, it enjoys nearly 90% of Lister Petter's business. It started expanding its customer network in the UK and added customers like Kelvin Diesel, Villiers, Gardner and Sons, etc, and started exporting valves to France and Germany. The company established a 100% EOU in 1982-83 which commenced commercial production in the last quarter of 1984. The company widened its product range to include valves for heavy-duty stationary engines, locomotives and valves for the Defense sector. It also developed special types of masked valves for the export market. KAR MOBILES LIMITED, Tumkur: The company KAR Mobiles Limited, Tumkur was started in the year 1984, as a 100% EOU to cater exclusively for international market under the leadership of Sri V.P.Agharam, KAR MOBILES LIMITED, was born out of an electric supply undertaking in the old Maharajas state of Cochin under the name of Cochin state and Light corporation Ltd., Which was started in the year 1936. This was engaged in the distribution of electricity. The capacity of the plant is 6.5 million to 8.5 million units per annum. The company is equipped with well sophisticated equipments and is therefore capable of producing a range of values to defense forces, a truly remarkable sign of its high performance caliber. It has several departments like production, quality assurance, storage, maintenance human resource and marketing. In its constant endeavor to be the market leader, it has been producing quality engine values in very competitive rates. The company in helped in this task by its term of high qualified and dedicated professionals. Together company has established reputation for high performance. People at work comprise of a large number of individuals of different sex, age, and socio-religious group and different education standard. These employees in their work place show different behavior,
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pattern. And each individual who works has his own set of needs drive goals and experience, Each of these individual have its own physical and psychological qualities and thus they have to understand and dealt accordingly which exactly is the main purpose of personnel management. Today, Kar Mobiles Limited is one of the leading internal combustion engine values manufacturing, provides employment around 800 persons. During 1996-97, to cater to the needs of the global automotive companies, company has signed a technology license agreement with TRW Inc. USA. Company has also appointed TRW as sole selling agents for all countries except India, Pakistan, Bangladesh and Sri Lanka in respect of sales to original equipment manufacturers. In 1996-97, foreign exchange earned by the company is amounting to Rs. 8.13 crores. The company's passenger car sales leapfrogged by a spectacular 48% and the commercial vehicle grew by a robust 40% in the year 1999-2000. Over a quarter century of service in both domestic and overseas markets, has earned for the company an impressive clientele and substantial market share. Export is the main thrust area and the company has gained: Ship-to-use and preferred supplier status with OEMs Confidence of transcontinental customers.

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3.4 Vision, Mission, Motto and Quality Policy
Vision: The vision of Kar Mobiles Limited is to achieve 2000 million sales by 2013 by strengthening global presence in large engine valve market. To increase our global presence in medium and large engine valve market. Mission: The mission of Kar Mobiles Limited is: Provide superior products and services to customers and maintain market leadership Evolve as an institution that serves the best interest of all stakeholders Pursue excellence through TQM Ensure the highest standards of ethics and integrity in all actions. Motto: Customer satisfaction through on-time delivery of superior quality valves. Quality Policy: Kar Mobiles Limited is committed to comply with ISO/TS 16949 system requirements and improve customer satisfaction by Identifying and fulfilling all requirements of the clients/customers Complying with all applicable statutory and regulatory requirements Providing training to all employees to practice TQM and achieve continual improvement in all areas. Quality System of Kar Mobiles Limited: A testimony to the companys commitment to quality system through: TS 16949 certification. QS 9000 quality certification from BVQI. Initiation like TQM, TPM and employee involvement. Negligible warranty claims. Education and training focusing on creating a culture of quality and team work promotion. Concern for environment and initiatives for ISO 14000 certification. Improvement projects undertaken on a continuous and ongoing basis.

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Environmental Policy: kar Msbiles Limited is committed to : Maintain and improve the environment continuously. Conserve natural resources. Build awareness amongst all employees on environmental issues through continuous training. Comply with all relevant environmental statutory and regulatory requirements. Operate under an environmental management system, as specified in the ISO 14001 Communicate this policy to all employees and make it available to the public on request.

3.5 Area of Operation:


The company has its network all over the globe and the manufacture process entirely takes place in India. They have their agents who market their products on behalf of the company and even they sell their product directly to the customers according to their needs.

Dealership Network:
Kar Mobiles Limited has 400 countrywide direct dealers and 17 countrywide warehouses

Technical Collaboration:
In the year 1997, Kar Mobiles Limited entered into a technical collaboration with TRW Inc., USA to upgrade product and process technology. Under the technical agreement TRW had licensed for 10 years engine valve manufacturing technology to Kar Mobiles Limited. In addition, TRW has become the manufacturing and distribution agent for Kar Mobiles Limited for engine valves in market outside India. The Company has become the first vendor from India to be approved by Electric Motive Division (EMD) of General Motors Corporation, USA.

3.6 Ownership Pattern:


Rane Engine Valves Limited is the main promoter of the company with 41.68% share in the company. Remaining share is divided among Private Body Corporate, Banks, Government of Kerala, Individual and others. Kar Mobiles Limited is a Public Limited Company incorporated under the Indian Companies Act.

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Pattern of shareholding as on March 31, 2011 SL NO. Category No. of Shares % of Share Holding A B C D E F Promoters Government of Kerala Banks Private Body Corporate NRIs & OCBs Individuals & others Total 933628 37500 3978 268011 2085 994798 2240000 41.68 1.67 0.18 11.96 0.09 44.41 100.00

Philosophy on Code of Governance:


The cornerstone of the Philosophy of Governance adopted by the Board has at all times been based on integrity, transparency and fairness in all its dealings. The Company will continue to seek enhancement to shareholder value within the framework of business ethics, regulatory compliances and contribution to society. The Company has a clearly defined policy documented Ethical Standards of Behavior that defines obligations of each of its employees to the Company expectations of value driven behavior.

3.7 Infrastructure Facilities:


Canteen Facilities Ambulance Reading room Sports/Clubs Books for Reference

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Manufacturing Capacity:
Location Geographical total area (Sq.mts) Bangalore 24300 Geographically built area (Sq.mts) 14000 6 50% Production valve (Million) Export

Tumkur

40450

2200

2.5

100%

3.9 Achievement and Awards Certificate:


A testimony to the companys commitment to quality systems through: QS 9000 quality certification form BVQI. Initiatives like TQM, TPM and Employee involvement.

Well-equipped standards room with testing facilities.Synergies with reputed local testing institutes enable and ensure high quality products

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MILESTONES:
1975: established in Bangalore. 1983: Production commenced in plant II with licensed capacity of 1.5 million valves. Name changes from KAR Valve to KAR MOBILES LIMITED. 1987: Technical collaboration with EVL formally ended. 1991: Promoted ETA Technologies for developing special purposes machines. 1995: Received ISO9000 certification for Tumkur plant. 1996: Business process Re-engineering initiated. 1997: Entered in to Technical collaboration with TR Winc., USA 1988: The Company has been honored with the Excellence of Exports (E&PC) award. 1999: Approved by EMD (Electro Motive Division) of General Motors Corporation, USA first vendor from India. 2001: Received QS 9000/98 certification from BVQI (Bureau Veritas Quality International). 2002: KML, Tumkur De-bonded as EOU 2002: TQM initiatives. 2004: Achieving for JIPM award (Japan Institute of Plant Maintenance). 2004: Achieving for Deming Award. 2004: Company achieved ISO/TS/16949 2005-06: Company is marching towards Deming award. Company had achieved ISO certification. 14000

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3.10 PRODUCT PROFILE
A valve is an ancillary unit. It is used in internal combustion engine. An engine holds a pair of valves, one inlet valve and one exhaust. Every four stroke engine whether petrol or diesel requires internal combustion called IC valves. In any engine two valves have to be there, one for admitting combustible charge into the cylinder known as the inlet valve and the other to dispel the burnt gases to the atmosphere through the silencer known as exhaust valve. Some of the most popular valve steels are EN-52, FN-59, EN-51 etc are martens tic valve steels and 21-4N, 21-12N etc are austenitic valve steels. The principle product manufactured in both the plants is valves for internal combustion engines for automotive & non automotive applications of OEM & after market. Engine valve or poppet valve is used in most piston engines to open and close the intake and exhaust ports in cylinder head. The valve is a flat disc with a long rod known as valve stem. It is used to push down the valve and open it with a spring, generally used to close when the stem is being pushed. For certain application the stem and the disc are made of different alloy and in some application the stem may be hallow and is filled with sodium to improve heat transfer. The stem is operated with cam (cam shaft). The design of the cam determines the opening and closing of the valve. The cam shaft is connected to the crank shaft by means of gearing arrangement, running at half crank shaft speed in a four stroke engine. The valve spring keeps the valve pressed against its seat and ensures leakage proof operation and bring back quickly during its closing. When the engines started it gets heated up causing stem to expand in linear and in other portions. The dimensions are given taking into consideration of clearances provided to take care of expansion. due care must be taken, because even a slight in sufficient clearance may lead to valve not properly resting against the seat as the engine gets heated causing noise and loss of power. The ranges of products are; Automotive: 1. Two wheelers, 2. Three wheelers, 3. Cars & light vehicles 4. Heavy commercial vehicles.

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Non automotive: 1. Locomotives 2. Marine applications 3. Power generations 4. Aero engines 5. Battle tanks. 6. Off road vehicles. RANGE: More than 600 types of valves developed over a wide range of applications. The value is used in internal combustion engine. It opens and closes the valve ports. If the ports always open, the fuel exploded in the combustion chamber would leave through the ports. The explosion has to be kept in the combustion chamber to push the piston down. The valves are set up to open and close at exactly the right moment. One lets the fuel mixture in and closes. After the fuel explodes and pushes the piston down the other valve lets the exhaust out.

THE VALVE CONSISTS OF THE FOLLOWING PARTS:


The wide portion of the valve is called head. The long cylindrical portion is called valve stem. The portion of valve that connects the valve head and stem is called valve neck. The tapered portion on engine cylinder block on which valve is known as valve face.

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BIG VALVES RANGE:
Alco. Bergens Mirrless black stone. Pielstick. Wartsila. Waukesha. Ruston. Paxman. White superior. EMD

Inlet and Exhaust valves are precision engine components for sealing Inlet exhaust ports, which are used for controlling the gas exchange Process in internal combustion engines. They are meant to seal off the working space of the cylinder from outside the thermally lowerstressed inlet valves are cooled by the fresh gases which flow around them. Exhaust valves are subjected to high thermal stresses and chemical corrosion during the exhaust cycle.

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Definition of Medium & Large Valve:
Head Dia Small Small Medium Medium Medium Large Large Extra Large Extra Extra Large 20 28 32 40 56 78 120 Stem Dia 5 7 8 10 14 16 20 Length 75 100 110 140 180 300 400

APPLICATIONS:
Engine valves for applications ranging from 5 H.P. to 4000 .H.P. engines in segments such as: Marine Applications Locomotives Diesel Engines Battle Tanks Automobile Industry: Passenger cars, Light commercial vehicle, Heavy commercial vehicles & Two wheelers. Tractors Agricultural / Industrial / Stationary High performance cars

MANUFACTURING CAPABILITY:
Head Dia Stem Dia Overall Length Min. 18 mm Min. 5 mm Min. 50 mm Max. 105 mm Max. 22 mm Max. 450 mm

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CONFIGURATION:
Monometal Bimetal Friction welded Projection welded Machine finish Forge finish Hard faced Induction Hardened Flame Hardened Induction Hardened Stellite faced

Head Finish

Seat

Tip end

MATERIALS USED:
Low Carbon Steel Martensitic Valve Steel Austenitic Valve Steel Nickel Alloy Stainless Steel

Martens tic Valve Steel:


EN-18D, EN-19C, EN-24, EN-52, SUH1, SUH3, SAE140.

Austenitic Valve Steel:


Cr Steel: 21-2N, 21-4N, 21-12N, 23-8N, Ni-Alloy: Inconel 751, Nimonic 80A/81 Stainless steel: SS304

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Hard facing:
Cobalt alloys - Stellite Grades 1, 6, 12, 20 & F Triballoy - T - 400 Nickel alloys - NI - 60, Deloro Alloy 60 Triballoy - T 700

Surface Treatment:
Hard Chrome Plated Tufftrided Phosphated

MANUFACTURING IN KML:
As stated earlier, KML manufactures valves of all sizes for IC engine for both automated and nonautomated applications. The method adopted by KML is according to the customer specifications. All the valves are checked according to the SAE standards. The valves are being used in engines having 5 HP to 3000HP. For the production of these valves, different sophisticated and modern equipments are being used in KML. Some of them are MC grinders, lathe cutter, valve welder, heat treatment machine, CNC machine etc

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ORGANIZATIONAL STRUCTURE 4.1 INTRODUCTION TO ORGANIZATION:
Organizations are as old as the human race itself. They are group who work towards some purpose, organizations are not a physical structure rather they are people who work together to achieve a set of goals. An organizational structure is a mostly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim.

4.2 IMPORTANCE OF ORGANIZATION:


Organization is the foundation of arrangement; organization allows people jointly to increase specialization and division of labor, use large scale technology. Organizations are a variant of clustered entities. The structure of an organization is usually set up in many a style, dependent on their objectives and ambience. The structure of an organization will determine the modes in which it shall operate and will perform. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities. Ordinary description of such entities is as branch, site, department, work groups and single people. Contracting of individuals in an organizational structure normally is under timely limited work contracts or work orders or under timely unlimited employment contracts or program orders. Economize on transaction cost, extra power and control. This increases the value that an organization can create. If the organization is not properly designed and reveals a number of problems then the divisions become ineffective. The result will be slow in work, lack of co-ordination of activities, conflicts among the member

4.3 Structure:
The company follows line and staff organization. The company is managed by the executive vice chairman who is nominated by the Board of Directors, who takes decisions regarding policy making and decisions in other important fields. The company is headed by Chairman under him comes the executive vice chairman. The vice president-operations reports to the President.

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The main departments in Kar Mobiles are Marketing department, finance department, materials department, production department, information system and personnel department. Each department is headed by the head of the department. The HODs of marketing, finance and information system directly report to the President whereas the HODs of other departments report to the DGM operations who in turn report to the Vice president-operations.

4.4 Composition of Board of Directors: Promoter Group:


Name Mr.L.Ganesh Mr.L.Lakshman Mr.V.Ramachandran Status Chairman, Non- executive Director Non- executive Director Non- executive Director

Independent & Non-executive Directors:


Mr.A.Hydari Mr.K.P.Balasubramaniyam Mr.L.Lakshmanan Mr.C.N.Srivatsan

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4.5 Organization Chart:

Chairman

President

Sr.Manager operations

Sr.Manager QA

Sr.Manager HR

GM-Finance

GM-Marketing

Sr.Manager Materials

Sr.Manager Accounts

OEM - Marketing

Replacement Marketing

Sr.Manager Engineering Export

Purchase

Consumable Stores

Raw Materials

Sub Contracting

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4.6 FUNCTIONAL DEPARTMENTS: Department is a structural process in which individual interacts to objectives. It is the foundation of arrangement. The managers co-ordinates and control the activities through organization. If the organization is not properly designed and reveals a number of problems then the divisions will become in effective. The result will be slow and divisions lack of co-ordination of activities conflicts among members therefore leadership, motivation and co-ordination should be achieved.

4.7 LIST OF DEPARTMENTS IN KML:


MARKETING FINANCE HUMAN RESOURCE PLANNING PRODUCTION AND OPERATIONS QUALITY ASSURANCE INFORMATION TECHNOLOGY MATERIALS MAINTENANCE ENGINEERING

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Marketing Department:
Kar Mobiles Limited has 3types of customers and there are separate marketing heads for these customers.
President

General Manager

Sr.Manager OEM

Sr.Manager Replacement

Sr.Manager Exports

Executives

Office Admin Executives

Executives

Field staff

The Head of the department of marketing Mr.Atul Arora reports directly to the President. Below him there are three managers who are in-charge of OEM, Replacement and Exports. There are executives below these managers of respective department. Original Equipment Manufacturers (OEM) marketing deals with customers like TATA, Maruti, and Mahindra etc. Replacement marketing deals with the dealers of Kar Mobiles Limited. Exports fully take care of the exports and foreign customers of the company.

MAJOR CUSTOMERS OF KML:


KAR MOBILES is also the first vendor from India approved by GM-EMD, USA.

Clients/Customers:
Over a quarter century of service in both domestic and overseas market has earned for the company an impressive clientele and substantial market share.

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Domestic Customers:
Ashok Leyland Limited Bajaj Tempo Limited Bharat Earth Movers Limited Cummins India Limited Diesel Locomotives works Escorts Limited L&T John Deere Mahindra &Mahindra Limited Maruti Udyog Limited Same Greaves Limited VST Tillers and Tractors Limited Simpson & Co Limited International Tractors BEML Continental Engines Eicher Motors Force Motors Greaves Cotton Limited Hindustan Motors International Tractors Limited International Cars & Motors Limited

Overseas Customers:
General Motors EMD, USA Carl M. Cummins Federal Mogul Engine Parts Inc Yip Shing Disel, Hong Kong Yong Kong, Thailand Heavy Hard Parts, Australia Hertz, Germany
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Lister Petter Limited, UK Lombardi SRL, Italy Mirrless Blackstone, UK Steyr VEGE, Germany Wiscon, USA Federal Mogul, USA Wartsila, Finland Hana internationals, UAE

Competitors:
Rane Engine Valves Limited Shriram Piston & Rings Limited Auto Field Engineers Benera Udyog Gratco Valves Limited Duro Valves Limited Vikram Valves Limited

Applications ranging from 5 H.P. to 4000 H.P. engines in segments such as: Agricultural / Industrial / Stationary Marine Locomotives Battle Tanks Farm Tractors Automotive-Passenger cars/Light commercial vehicle/Heavy commercial vehicles High performance cars

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Export:
Kar mobiles export constitutes nearly 45-50% of total turnover. St.Johns is the main forwarder for export for both sea and air consignment.

Major exports to countries like:


U.S.A U.K GERMANY ITALY DUBAI THAILAND SRILANKA NEPAL BUTAN FINLAND SWEDEN RUSSIA MALAYSIA AUSTRALIA U.A.E

Promotional strategies:
The company participate in various international exhibitions, meeting people at higher levels by DGM, various magazines are the different medias used by the KML to market the products. The company also promotes its products based on internet advertisements. The company also has coupon monitoring system wherein the aftermarket sales are given discounts in return to the coupon which is attached to the valve packing.

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MARKET SHARE:

MARKET SHARE
KARMOBILES 25% OTHERS 20% REVL 55%

25% 55% 20%

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Outlook:
Domestic market is expected to continue the robust growth next year. The passenger car manufacturers are planning further new product launches and all the leading manufacturers are going for capacity expansions. Light and Heavy commercial vehicles along with tractors are expected to continue with positive growth. The Aftermarket is also showing signs of good demand. Export market, which has also shown positive signs, is likely to improve further in the current year and your company is well placed to further grow in this segment. Prices of commodities like steel and oil have started hardening but the general expectation is that the increases will be moderate. The recent trend of strengthening of the Indian currency is of concern. The continuance of subsidized exports from China and the maintenance of an artificial peg on their currency could adversely affect Indian exports in the medium term. KAR MOBILES LTD will continue to focus on improving productivity and quality and seek niche markets to sustain growth.

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Finance Department:
The finance department is headed by General Manager-Finance who reports directly to the President. Under these there are executives for the concerned works. The finance department of Kar Mobiles is headed by Mr.H.K.Vadiraj.

President

General Manager

Senior Manager Accounts

Asst. Manager

Sr. Executive

Executives

Deputy Executives

Assistants

Role and Purpose of the Department: Role


Reduce Finance Cost Budgeting and Tracking Provide information on Financials Minimize Financial Risks Accounts Book Keeping Comply with Accounting Standards Fulfill Statutory requirements Cost Management
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Internal control systems Statutory requirements adherence Product Costing MIS Support for Management decisions Meet Corporate Governance Processing of Customer Outstanding Monitor Collections Analysis of Customer Outstanding Reconcile Cash Credit account Ensure Scrap sales accounting Accounting and Payments of all Creditors Accounting and Payment of interest on Trade Deposits Analysis of Creditors Outstanding Ensure tax deduction at source Reconcile accounts payable Ensure Timely Employee Payments Ensure Timely Remittance of Statutory & Non Statutory Payments Ensure Proper Payroll Accounting Preparation of Payroll M I S Ensure Timely Employee Annual Payments Compliance of Employee Income Tax Compliance of Statutory Returns & TDS Efficient monitoring and accounting of bank payments Efficient controlling and accounting of cash receipts and payments Maintaining General Ledger Balances through continuous reconciliation of accounts. Consolidating SBP/AOP Finalization of Annual Accounts Export and Import bill accounting and payment Ensure Timely Remittance of Statutory & Non Statutory Payments Prepare MIS on utilization of funds Liasioning Compliance of Sales Tax Monitor & account branch expenses Reconcile bank accounts computation /updating product costing Prepare monthly stock valuation Accounting & payment of employee Travel Claims Co-ordinate physical inventory prepare MIS Accounts Book Keeping

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Purpose:
To Control finance optimally & provide management information support To Provide Financial accounting information To Provide Financial accounting information and Cost Management To Provide MIS And perform Secretarial functions To Facilitate effective receivable management To ensure accurate liability creation and payment to supplies and services To make correct, timely employee payments and employee accounts To maintain and properly account cash transactions To Maintain general accounts To Facilitate licensing & bank related jobs To Compile accurate tax liability, filing & returns To Facilitate product costing & travel bill accounting To Provide Financial accounting information

Financial and Operational Performance:


Company operates in a single segment viz., automotive industry. The operating result for the year was higher compared to previous year mainly due to reduction in raw material cost and employee cost. Better management of inventories and receivables has contributed in reduction in interest cost. Prices of commodities like steel and oil have shown stable trend. The company took various remedial measures to mitigate exchange risk and implement productivity and yield improvement projects to contain employee and raw materials costs. The company has established goods export business base with customers in US and Europe. The business in the current year was badly affected as most of the big buyers especially in locomotive and off road vehicle business started controlling inventory. Export market showed some sign of improvements from December 2009 onwards and we expect some good recovery in the nest year. Even during the recessionary year we could add a few more potential customers. This should help in the future growth of this segment.

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Human Resource Department:
President

Senior Manager HR

Asst Manager

Manager (tumkur)

Senior Executive

Senior Executive

Executives

The company attaches considerable importance to Human Resource Development. The management is continuously working on the development of human capital, vital, in an ever changing business environment towards achieving the goals and realizing the vision of the company. Rane Institute for Employee Development is a group resource that imparts training towards continuous enhancement of technical and managerial skills and building managers for the future. The human resource department of Kar Mobiles Limited is headed by Mr.B.Ravichandra.

Functions of Human Resource Department


Human resources departments main responsibility is the recruitment, selection, training and development of staff. This will involve developing staff to maximise their potential in a manner that furthers the organisations objectives. Human resources may also need to comply with legislation applicable to the country in which they are based. For example in the UK employers will need to maintain accurate personal records in a manner that is compliant with the UK Data Protection Act 1984. Human resources often adopt a welfare role which includes looking after employees whilst they are at work. They may also create policies that balance organisational needs with those of the employee. They will also interpret employee welfare legislation and ensure that the organisation is complying with the applicable legislation.
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APPLICATION OF HUMAN RESOURCE PRACTICES AT KML Standards Man power budget exercise will be conducted to identify man power requirement needed to meet companys short and long term goals and plan accordingly for resource allocation. Manpower enhancement decisions for new vacancies will be taken after carefully evaluating companys requirement. Man power replacement decisions for vacancies existing in the company will be taken after objectively evaluating existing positions and considering all available options. Clearly defined role and personality profiles or managing points will be developed for all positions.

Human Resource Development and Industrial Relations:


The Company attaches significant importance to Human Resource Development (HRD) and harmonious industrial relations. The management is continuously working on the development of human capital, which is very vital for achieving the goals and realizing the Vision of the Company in an ever-changing and challenging business environment. Rane Institute for Employee Development is a group resource that imparts training for enhancing leadership and managerial skills. On an average each employee across all segments and divisions is trained for 3.51 days. Total Employee Involvement is a key element of Total Quality Management (TQM) that enables continuous improvement to all business processes. The Company conducts regular Employee Opinion Surveys, the outcome of which is shared with the employees, deliberated and acted upon. New strategies like multi skilling, competency enhancement initiatives and enhancing managerial depth and bandwidth are being progressively implemented to optimize employee costs and improve productivity. EMPLOYEES DETAILS of KAR MOBILES LIMITED: BANGALORE-800 Management staff- 138 Temporary operators- 225 Apprentices- 100 Diploma operators- 70 Contract labor- 100 Operators- 320 TUMKUR-400 ATTRITION RATE 4.5%
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SOURCES OF RECRUITMENT:
HR will choose one of following methods of sourcing: 1. Internal source 2. external sources Campus selection Through consultants or websites Employee reference schemes Walk-in interviews (rarely)

The process followed for recruitment is as under: Scrutinizing the CV Written test Interview Psychological test Medical check up Offer and appointment.

TRAINING AND DEVELOPMENT:


1. On the job training 2. Off the job training LEVELS OF EVALUATION: 1. Key result areas-plan vs. actual 2. Innovativeness, creativity and improvements in projects. 3. Managerial leadership, core competencies The ratio of above three varies for different categories. Leadership qualities are given importance for senior level management. Workmen evaluation is based on attendance and production output.

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PERFORMANCE APPRAISAL METHODS:
1. Forced distribution method 2. Straight ranking method Compensation is based on the performance appraisal rating.

COMPENSATIONS:
Workmen compensation: Salary Production incentives Production related performance. Profit sharing bonus

Non-workmen: there are totally 8-9 grades Salary Bonus No incentives

Salary is paid on different scales depending on the qualification of the employees. Staff salary is revised every year based on employees performance appraisal. Workmen salary is revised once in 4 years based on negotiation and collective bargaining process.

TRANSFERS:
Intra plant transfers Inter plant transfers

SAFETY AND SECURITY MEASURES:


Kar mobiles ltd provides all the required safety and security measures in order to protect the workers from accident as per the statutory provisions laid down in labor law and various other laws in order to protect the welfare of employees. Few safety and security measures are as under: Medical facility for first aid There is a union for job security

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The company also contributes for the personal accident policy coverage, only if the accident has taken place inside the factory and not by negligence of the employee. Corporate Social Responsibility: they recruit deaf and dumb people, There are totally 1 blind, 6 deaf and dumb people

MAINTAINENCE AND DISCIPLINE AT WORK PLACE: The workmen and the union have agreed to work for the entire shift hours excluding lunch break. The workmen shall not stop their machines in between the working hours. They honestly and sincerely work for entire shifts hours without wasting time. Workmen shall also work anywhere within the line or any line wherever the supervisor deploys him. Workmen shall adhere to multi skills and multi machine manning. The workmen shall not get out of the factory premises without prior notice. The workmen shall not loiter within the factory premises unnecessarily and waste their time. Operators shall set their machines. Operators shall do tool grinding/forming, whenever necessary. Supervisors will also assist. Operators have to do regular optimal checks, TPM/ Kaizen suggestion scheme multi machine manning, 5s and safety.

Motivation techniques:
Employee will be given a cash award for his innovative ideas and techniques, which serves the best interest of the organization. Implementation of new ideas and 20% of profit gained from it is given to that person. Innovation of new skills and maintaining the past are also given gifts and rewards. Suggestions from employees to reduce scrap. If an employee shows continuous improvement in his current job is awarded with momentous. Employee union is also encouraged to participate in management decision process to certain extent. There are various committees like canteen committee and safety committee.

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GRIEVIANCE HANDLING:
If there are any deficiencies in the work place or any grievances faced by employees will be handled by the immediate boss or department head or by the HR. Grievance interviews takes place very often and instant solutions will be given. Only genuine grievance will be considered.

LEAVE FACILITIES:
Total number of leaves available for an employee in a year is 49 days. TYPES OF LEAVES: a. Earned leave b. Casual leave c. Sick leave d. Restricted leave EARNED LEAVE: It can be availed at the rate of 25 to 28 days in a calendar year, with at least 14 days of prior notice according to the law. There are exceptions in case of emergencies. Leave will be sanctioned depending on the circumstances. CASUAL LEAVE: casual leave will be availed for 7 days per annum who have completed 6months continuous service in the organization. SICK LEAVE: Sick leave can be availed for 9 days in a year. RESTRICTED LEAVE:It can be availed for 4 days in a year. Other types of leave are: National holidays- 12 days Sundays- 52 days In case of leave taken for more than 8 days without prior notice, the concerned department will have the right to terminate the services of the employee.

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AWARDS:
Long service awards are given to the employees as under: SERVICE 10 Years continuous service 15 years continuous service 20 years continuous service 25 years continuous service 30 years continuous service 35 Years continuous service AWARD Titan watches with service certificate. 140gms Silver plate with service certificate. 4gms Gold coin with service certificate. 8 gms Gold coin with service certificate. 10gms gold coin with service certificate. 12gms gold coin with service certificate.

PROMOTION POLICY:
Employees/unionized staff will continue to be considered for promotion as per the existing promotion policy. Fitment in the new grade consequent on promotion will be subject to the conditioned that the promoted workmen/employees do not cross the senior employees in the new grade, except for employees who have got converted to staff/ reclassified. In such cases, the existing practice of maintaining the wage parity between the junior and senior workmen/employees will continue till disparity is rectified. In case of promotion, the decision and placement will be at the discretion of the management. Management has also informed the union it will come out with new promotion policy within 3months from the date of signing of this settlement for discussion and conclusion.

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I T DEPARTMENT:
PRESIDENT

SENIOR MANAGER

INCHARGE I T The SAP ERP application is an integrated enterprise resource planning (ERP) software manufactured by SAP AG that targets business software requirements of midsize and large organizations in all industries and sectors. It allows for open communication within and between all company functions. A BOM (Bill of Materials) is a list of assemblies, sub-assemblies, components and raw materials, including brought in items that conclude to the making of the final product. When this is operated through the data base management system of a CIM system, BOM allows the user a quick way of exploring different levels of product. In the area of Stock Control a computer aided stock control system allows a data base record of all stock that is brought in and out of the stores. It will also accept enquiries and release reports on the stock status. This helps to reduce stock levels and control redundant stock. Kar mobiles centralized data center at Chennai SAP services: E-mail Internet Isms Facility management Under SAP Material management Sales and distribution planning Production planning Quality management Plant maintenance. Finance and costing And for HR PAYROLL
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And for marketing coupon monitoring system for sales promotion Databases of employees are maintained At company level each person has a head called CHAMPIONS The company is in the process of implementing MATERIALS REQUIREMENT PLANNING AND MANUFACTURING RESOURCE PLANNING.

Master Data in Purchasing:


Material master: A central repository of information on materials for the enterprise which

contains information on Basic data, Purchasing, Inventory, Sales and Distribution, Accounting, Material planning and control. Material numbers can be assigned internally or externally that can contain a maximum of 18 Characters. The material master contains all the information on all materials that a company procures, produces, stores, and sells. The material master is used by all areas in the SAP Logistics system such as purchasing, inventory management, material requirements planning (MRP), invoice verification, and so on. The integration of all material data in a single database object eliminates redundant data storage. The data in the material master is used to perform the following functions in the SAPLogistics system: in purchasing for purchase order processing in inventory management for goods movement postings and physical inventory management in invoice verification for posting invoices in sales for order processing

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Quality Assurance Department:
Plant head 1

Head plant quality

Product Audit

Process Audit

Raw material Audit

Customer complaints Gauge room Material lab

Quality control is responsible for quality assurances of the components and product. This includes inspection of both to ensure that they meet the designers actual specifications. Shipping and Inventory Control is the final step that involves the shipment of the goods to the customer. The inventory control ensures that there are enough products to satisfy customer demand.

Quality Objectives:
Company level data, customer requirements and business requirements are the basis for finalizing quality objectives. A CROSS FUNCTIONAL TEAM consist of members from every department will discuss based on the various inputs, company quality policy and finalize the year objective, during every financial year-end. The objectives and targets once approved by management will be included in the short-term business plan. The finalized objectives and targets will be communicated to all departments and all departments will work for achieving the year objectives. The action plan and achievements towards these objectives will be tracked on a monthly basis by the department and reviewed during the management review.

Responsibility for Quality:


Manager Quality Assurance is responsible for product quality. All product quality issues including internal rejections and customer complaints are reported to Manager-QA. He with the help of QA department and manufacturing plants ensures product quality. In all shifts product quality is ensured through routine inspection and testing by production department and QA department. In all shifts sufficient engineers (line engineers) are engaged for ensuring product quality.
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Management representative:
Mr. R.Sreedharan Manager-QA is the Management representative for both plants Establishing, implementing and maintaining quality management system, in accordance with ISO/TS 16949:2002. Planning and carryout internal quality audits Carrying out review of quality management system along with management. Reporting the performance of quality management system to the management. Creating awareness on customer requirement throughout the organization Liasioning with external agencies like certifying body and customers on quality management system.

Customer representative:
Mr. R.Sreedharan Manager-QA is the customer representative for Interacting with customers to understand customer specific requirements with reference to quality management system, selection of special characteristics, setting quality objectives, training, corrective & preventive actions and product design and development.He will communicate these requirements to the respective department /persons in the organization.

Testing & Validation:


Meticulously planned testing routine to ensure conformance to quality. Advanced testing equipments instituted to evaluate quality in minute detail. 7 QC TOOLS ADOPTED BY THE ORGANISATION FOR CONTROLLING QUALITY OF THE PRODUCT Pareto chart Cause and effect diagram Histogram Stratification Scatter diagram Control charts Check sheets

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Quality Assurance Facilities:
Hardness Testers - Rockwell & Vickers Automatic Specimen Polishing Machine Spectrophotometer Metallurgical Microscope Tensile Testers Micro Profile Projectors Tool-maker's Microscopes Roundness Testers Surface Roughness Testers Dial calibration Testers Cylindricity Tester Magnetic Particle Inspection Ultrasonic Testers Hardness Test Problem solving approach continuous process consisting of four steps:

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PRODUCTION DEPARTMENT Planning process:
Marketing Plan

Monthly Production Plan

Weekly Bonding plan line wise

Daily Forging Dispatch plan Daily Bonding Plan

Planning department acts as a mediator between the marketing and production department. The planning process starts when the marketing department gives the details regarding the product, according to customer specification. Planning department then receives the design of the product and sets of the dispatch date Production planning is used to determine production levels for product groups. This is based on sales forecasting and is used to raise or lower inventories, stabilize production and planning and allow the launching of new products onto the manufacturers range of products. Process Planning determines the sequence of operations required in the manufacture of a product or its components. Estimating is to determine prices and predicting costs including manufacturing lead times and production costs. Production costs include materials, labor and general overhead costs needed to manufacture the end product. The data for this is supplied from purchase files, route sheets and accounts records.

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Structure of production planning and control department:Plant Head Operations

Head PPC

In charge PPC forge shop

In charge PPC-machine shop

Shift in charge-1 PPC Forge shop

Shift in charge-2 PPC machine shop

Shift in charge-1 PPC Machine shop

Shift in charge-2 PPC machine shop

PRODUCTION FACILITIES:
Two manufacturing plants producing over 6.5 million valves per annum, Access to the latest product and process technology. Special Purpose Machines made in-house for captive usage. Product lines with robust process & stable. Separate Production Lines to manufacture valves for Applications Ranging from Cycle to Locomotive & Marine Engines. Friction Welders Electro Hydraulic up-setters Tig welding machines Projection welder Friction Screw Presses Valve Straightening Machines Electric Hardening & Tempering Furnaces Centre-less Grinders Induction hardening machines CNC turning machine Valve seat grinders Motor

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PRODUCTION PROCESS:
The company manufactures valve only after receiving the orders from its customers. The production department starts its work when it receives order from marketing department. According to customer requirement Engineering department make a sketch or model with all measurements. After customer satisfaction they fix the deal and process begins in material dept.

MONOMETAL VALVE:
BARCUT At first, the raw materials are taken from the stores. In BAR CUT process they cut the Bar according to customer requirement. It includes thickness of the product, size, length etc. DEBUR PROCESS Bar cut process leave some extra edges that are removed by DEBUR PROCESS. BAR GRINDING In BAR GRINDING process an angle is made on the top of the bar. END TOUCH Next process includes the finishing of both the surfaces; this process is called END TOUCH. FORGING PROCESS In FORGING PROCESS a high voltage will be applied to one end of the bar. Due to high voltage and force, a bulb will be formed at this end and it will be pressed to give required valve shape.
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HEATING TREATMENT After forging process, valve will be given HEATING TREATMENT for hardening and tempering. OILING TREATMENT Then OILING TREATMENT will be applied for softening and increasing the durability of the valve. STRAIGHTENING In heating process valve becomes bent due to distortion but vehicles require only straight valve so for becoming straight the valve, STRAIGHTENING process will be applied. Above all procedure is done in FORGE SHOP. After forge shop valve will go in MACHINE SHOP for final finishing, cleaning, polishing, marking, correct measurement and packing.

BAR TO BAR PROCESS (BIMETAL:


Bimetal is used for increasing the length of the valve. If any vehicle requires valve of long length then starting material of valve will be of high alloy and ending material will be of low alloy. The main aim of this process is to reduce the cost of valve. Following flow chart is showing the process of making bimetal valve

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The basic important document which should be prepared by the organization i.e. annual operating plan, which is prepared in the month of March for the next accounting year. Based on the annual operating plan budgets of each department are estimated and customer requirements are assessed and production planning is done. Based on the marketing priority or review, which is held on every Saturday, to discuss what are part numbers to be produced based on that route card is prepared which contains all the necessary details about the product to released right from the stage of releasing the raw materials to final product. Each kind of material has different route cards. Route card helps in tracing of a product and which helps to know the position the product. C code in the route card helps in the verification of metal stock. Cut bar code is also verified in the route card.

FLOW OF ROUTE CARD:


The User can both create and maintain Manufacturing Instructions for individual Parts or Assemblies. These Instructions comprise the individual Operation details of Set-Up Time, Operation/Cycle Time, Lead Time (for Sub-Contract) associated to the various Resource Codes that define the machines and processes provided by your company and its associated sub-contractors.

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In addition to the standard Resource Descriptions (e.g. CNC Milling, Drilling, Bench/Assembly, etc.) the Planner may also specify more detailed Operation by Operation Instructions that will appear alongside the Operation when the Route Card is printed. Once Manufacturing Instructions are available the User may print off Route Cards for that Part in either stand-alone format or via the Works Order and Scheduling modules which will enable the Route Card to automatically reflect the Customer, Quantity, Due Date, Works Order Number, etc. The company has different part numbers for different valves based on the annual operating plan and number of orders received the production is undertaken based on the requirement part number materials are released for production. There are more than 1000 part numbers at kar mobiles of different quantity and variety catering to the needs of the customers. The 5 - S practice is a technique used to establish and maintain quality environment in an organization. The name stands for 5 Japanese words: Seiri Seiton Seiso Sieketsu Shitsuke

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Maintenance department:-

Plant head

.
Plant head maintenance

Utilities

Shop in charge

Forge shop

Machine shop

DEPT IS HEADED BY MR KAMATH (MANAGER) FOR ASSETS THERE IS CIVIL MAINTENANCE In kml they follow both breakdown and predictive maintenance these are time based maintenance and condition based maintenance In kml they do sewage treatment where in the segregate the chemicals with water and these waters are reused for gardening purpose. The max breakdown so far recorded is 4hrs and above and they are trying to keep the machinery uptime by 98%.

Benefits of Implementing TPM in an Organization


Productivity improvement Quality improvement Reduction in defectives Reduction in Customer Complaints Cost Reduction Delivery Timely Safety Zero accident
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Reduction in Pollution (Responsibility to society) Morale of employees Participation Suggestion schemes Increased equipment operating time Reduction in maintenance cost Reduction in inventories Better handling and layout A well conceived preventive maintenance program should contain the following features:

Benefits:
1. Greater safety for workers 2. Decreased production downtime 3. Fewer large scale & repetitive repairs 4. Less cost for simple repairs 5. Less requirement for standby equipments 6. Better spare parts control 7. Identification of items with high maintenance costs 8. Lower unit cost of manufacture

Preventive maintenance is based on manufacturers recommendation and also based on past experience

Costs incurred are:


Repair and maintenance cost Reconditioning of old machines etc Machinery spares and services New machine procurement At kar mobiles ltd OEE OVERALL EQUIPMENT EFFECIENCY are calculated losses can be predicted OEE is a tool that combines multiple manufacturing issues and data points to provide information about the process.
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By having a predetermined framework of the impact of machine availability, operator performance and quality, OEE provides a framework to track underlying issues and root causes. OEE also provides a framework for improvements in the manufacturing process.

Procedure for tool maintenance system:


The objective of this procedure is - To maintain toolings properly - To support the production to achieve the targets on time - To provide valuable service to the production department

Description
1. Based on the monthly production schedule, Tool crib shall maintain the tooling in the tool crib. 2. If the toolings are not sufficient to meet the scheduled quantity, raise the purchase order to procure sufficient tooling. 3. After tool life over, the non usable tool shall be returned to Tool crib and new tool / repaired and inspected tool shall be issued. 4 .Received tools shall be inspected. Whether can it be reworked? 5. If it can be reusable after repair, the tool is sent for repair with proper document to Tool room or outside for repair. 6. If it is not usable, Move the tool with the red tag or red paint mark to the scrap location. 7. After repair, the tool is returned to tool crib with proper identification as repaired from the tool room. 8. Tool crib should inspect the tool whether it is as per the requirement or not with the help of tool drawing. 9. If it is OK, put the tool in the specified location. 10. If it is not OK, return the tool to the tool room for further rework or scrap with proper identification.

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Materials department:
The purchase department or materials department is headed by senior manager-Materials who reports to the President. There are four departments under materials department. Senior executives are responsible for each activity. Mr.G.V.Ravikumar heads the purchase department of Kar Mobiles Limited.
President

Senior Manager-Materials

Purchases

Stores Consumable

Raw Materials

Sub Contracting

The Purchase department is in-charge of all the purchases made by the company. Head of the concerned department will inform the purchase department about the requirements. This department is in-charge for the purchases of raw materials for the manufacturing of valves. They will be given a three month prior intend by the production, planning and control department which includes the required quantity of raw materials and days within which it has to be available. Then the department will place the purchase requisition to the suppliers. When the goods are received it is given a GR number (Goods Receipt Number) and is transferred to stores. The user will raise the indent in the system about the quantity required and give reservation number for the required raw materials. Based on the order the material will be issued. In some cases when the normal stock falls down it is also informed to the purchase department by the stores in order to buy the raw materials to maintain the stock. The company has a storage capacity of 7000 items in their department. Kar Mobiles Limited has established domestic and overseas suppliers. Normally the contract is for one year and it is renewed every year. The purchase department will receive three months requirement of raw materials from the marketing department based on customers order and based on annual operating plan and statement of raw materials will be prepared consisting of: raw material requirement stock inside the plant order pending on vendors Materials under transit.
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The company supplies: New product to existing customers. Existing products to new customers. New products to new customers. Lead time for imported materials is 6 months and materials reorder level is calculated using SAP. Approximately there will be 80-90 tons of orders are placed. Materials are released based on first-in first out basis. All bars are colored based on international standard for easy identification of use. Major suppliers are: STAR WARE INDIA Limited. KALYANI Carpenters. JIGAR MARKETING Private Limited. HALL MARK STEEL Private Limited. CARPENTER TECHNOLOGY (US). THYSSEN KRUPP (GERMANY). MITSUI (JAPAN). INCANAL Private Limited. The stores consist of direct materials i.e. Raw Materials and indirect materials which consist of consumables, mechanical and electrical spares. At present the company has: Raw materials worth 283lakhs. Consumables worth 45lakhs. 55lakhs worth of mechanical and electrical spares. Materials Used Low Carbon Steel Martensitic Valve Steel Austenitic Valve Steel Nickel Alloy Stainless Steel

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Martens tic Valve Steel EN-18D, EN-24, SAE-4140, EN-52, SUH-1, SUH-3

Austenitic Valve Steel Cr Steel : 21-2N, 21-4N, 21-12N, 23-8N, 21-43 Ni Alloy : Inconel 751 Nimonic 80A / 81 Stainless steel : SS304

Hard facing Cobalt alloys Stellite Grades : 1,6,12,20 & F Tribaloy : T-400

Nickel alloys NI 60, Deloro Alloy 60 Tribaloy : T-700

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Engineering department:President

Head Engineering

In charge ME- forge shop

In charge MEmachine shop

In charge capex and machine build projects

In charge tooling

In charge machine building and tryouts mechanical In charge design and drafting

In charge tool room

In charge tool crib design and drafting

In charge new product development

In charge drawing development

In charge SAP doc

In charge product management and sample

The engineering department is headed by Mr. Radhakrishanan who directly reports to president. The main responsibilities of this department are Translation of customer drawing into plan. Assess capacity of the machine. New product development. To procure equipments/machinery from local/overseas. To handle the equipments. Method of manufacturing. Machine building. Designing and drafting of tools. capital expenditure

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Based on the customer requirements the engineering department translates the customer drawing into plan and they try to assess the present capacity, and method of manufacturing and tries to procure the required equipment and design the dice which are designed in-house/procured outside. The company uses normal drafting software for designing the product. Nearly 230-240 new products are developed in a year.

New Product Development KML:


Dedicated team of engineers Structured NPD process in place - CFT Approach. - Design reviews - Design & Process FMEA CAD software - CAD2000, Pro E Capability to co design Can leverage REVLs facilities and capabilities

Design & Development Capability:


Centralized R&D and Product Engineering Function responsible for and product design. Specialists in IC Engines, CAE & CAD Application. NPD Process aligned to ISO/TS 16949: 2002 requirements. Concepts like QFD, Design Reviews adopted from Japanese practices. Software Capabilities - AutoCAD, Pro-E & Ansys. customer interaction

Testing Capability:
Endurance Test done for concept proving and design validation Power, SFC in the engine and wear & distortion on the product are measured Valve temperature measurement can also be done based on customer requirement. Investment in a plant and machinery are based on annual operating plan and strategic business plan for the next 3years based on business capacity and conditions of machines, either it will be replacement or for further expansion.

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Preparatory activities for enquiry for locally procured/imported machine/equipments. Consider the requirement of the machine from the AOP. Consider the customer requirements. Consider the scope for up gradation with respect to availability of the advance machines and equipments from various machine tools exhibitions/ internet/other sources. Consider FMEA results during planning of new machine/equipment, wherever applicable. Preparation of pre-part drawing/sketch. Action plan for activities.

Major Suppliers of Machinery:


ETA Technology Pragathi Automation SMT Baroda Scal Quench Keen Celario Ace Designers Limited Gee Dee Wailer Fine Art Pune

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SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research. Strengths: attributes of the person or company that is helpful to achieving the objective(s). Weaknesses: attributes of the person or company that is harmful to achieving the objective(s). Opportunities: external conditions that is helpful to achieving the objective(s). Threats: external conditions which could do damage to the objective(s). Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated. The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.

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STRENGHT:
Recognized as a medium and large valve manufacturer. ISO/TS 16949 Certified Company. First Indian company to become a vendor partner to General Motors Recognized as the 2nd largest producer of valves in India Strong presence in locomotive segments High brand equity in served markets Caters to a wide variety of industries Specializes in supply of valves to manufacturers of large engines Good industrial relationship. Excellent Relationship with key customers Technical Collaboration with TRW Incl. USA Export oriented plant at Tumkur Specialization in valves Practice of TQM resulting continuous productivity gains. Capability to manufacture large valves Skilled manpower KML has 2 world class manufacturing plants in Bangalore & Tumkur Experience in handling overseas customers The Company has a wide dealer network and field force spread across around the world. The company has a capacity to produce 8 million valves per annum.

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WEAKNESS:
Inadequate focus on cost reduction. Inability to meet the requirements Limited knowledge of large valve markets Low investment in technology up gradation Highly sensitive raw materials Low productivity Inadequate failure of planning Under utilization of resources Excess usage of man power Lack of automation Communication gap Increasing low volume requirements Changing product / market mix Poor process capability Inadequate focus on exports Poorly maintained machines Weak in technological innovations Lack of pride in workmanship High wage cost Inadequate systems Lack of process robustness Improper scheduling of orders. Complaints of the customers are not met on time due to various reasons. Low competencies. No R&D Center for new product development. The company is exposed to cyclical downturns in the Automotive Industry Dependence on Original Equipment Manufacturers The company is locking up funds in idle assets thereby resulting in improper cash management. Longer operating cycle resulting in increased working capital requirement.

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OPPORTUNITIES:
India has averted the effects of the global slump and continues to grow at a healthy 7-8 %. More and more multinational companies are now targeting India as the hub for manufacturing and exporting. Many global Automobile manufacturers have set up bases here and actively pursuing sourcing from here. This provides good opportunity to component manufacturer for accelerated growth. Outsourcing by valve manufacturers in high cost countries Increased outsourcing by international customers Growth opportunities in after Market The continued attraction of the Indian Auto component Industry as an outsourcing hub presents immense opportunities for growth. Win market share from high cost competitors in overseas market Exploit large & growing domestic two wheeler market Participation in global outsourcing Manufacturing / trading of related engine components CNC machining The Company is exploring growth opportunities while retaining current customers who are likely to recover once economic scenario recovers in USA and Europe. Significant Export opportunities may be realized through diversification of export basket.

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THREATS:
The business in the current year was badly affected as most of the big buyers especially in locomotive and off road vehicle business started controlling inventory. Dumping from China and cheaper imports from other low cost countries. More competition since there are no growth opportunities for MNCs elsewhere The presence of a large counterfeit components market poses a significant threat Volatility in commodities and exchange rates Price Competition from other emerging countries Increasing domestic competition Volatility in commodities and Exchange rates Limited growth rate in the aftermarket as a result of enhanced durability of engine valves The presence of spurious products in the replacement market Volatility in commodity prices- steel and other inputs Currency fluctuations Competition from Italy, Argentina, China & Taiwan Imports pose price based competition in the replacement market Due to increased competition and pressure from OEM customers especially in passenger car segments, the companys product prices may come down in future which may have an adverse effect on profits of the company. The major portion of the Companys export receivables are denominated in US Dollar, while most of the input costs are incurred in Indian Rupees and Japanese Yen. The strengthening of Indian Rupee with respect to USD could adversely impact the profitability of export sales and this situation could continue if the Indian Rupee continues to appreciate against USD. Further slowdown in the domestic economy may result in lower off take by OEMs and Institutional customers.

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FINDINGS, SUGGESTIONS AND CONCLUSION FINDINGS:
Production of quality valves for internal combustion engines commenced in 1974 Technical collaboration with TRW Inc, USA Global excellence in product and process technologies Preferred supplier to OEMs Caters to a wide variety of industries Specializes in supply of valves to manufacturers of large engines Clientele includes reputed brands like Mirrless Blackstone, Pielstick, Ruston and Wartsila Diesel First Indian company to become a vendor partner to General Motors KML exports its products to different countries like U.S.A,U.K, GERMANY ,ITALY DUBAI ,THAILAND ,SRILANKA ,NEPAL ,BUTAN ,FINLAND ,SWEDEN, RUSSIA

MALAYSIA, AUSTRALIA, U.A.E. IPA has got proper Departments in organization. IPA follows simple structure in the organization where the flow of work is of downward slope. The terms of activity in the organization flow downwards from Directors at the top, to the line supervisors at the bottom and it is clearly defined. The activities of the company are decided according to the function and work assigned to persons, according to their specialization. Work is assigned to the person according to his specialization and it is clearly defined in the flow. There is a proper selection and placement of employees and the optimum use of human resource are taken care in the organization. The personal ability and potential of each employee is recognized and encouraged. . Products are designed according to the customer specification and it is cross verified with customers before sending it to the production department. The product planning and designing is made according to the customers specifications. In KML there is a periodic training class to its technical employees. And the necessary precautionary safety measures enhanced in the production department. State of the art management systems Manufacturing facilities are TS 16949 2nd Edition certified ISO 14001 certification for environment management practices.
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The company has all the equipments to check the quality of the products and raw materials. It has an effluent treatment plant in which water is recycled and is reused for gardening purpose. The company has outsourced people for packing and dispatching of goods in order to reduce the cost. Sales and operating revenues were lower by 14%. Operating profit recorded an impressive growth of 40% due to continuous focus on reduction in inputs costs and better management of other costs. Domestic original equipment manufacturer (OEM) sales had grown by 23% contributed mainly by farm tractors, Heavy commercial vehicle and industrial engines. Replacement market has shown robust growth of 24% during the year. Exports were lower in OEM & aftermarket segments due to lower off take and reduction of inventory by dealers in US and Europe. The company is not able to meet the demands of the customers on time. There a communication gap between the departments in the process of production.

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SUGGESTIONS:
The company should initiate MRP as early as possible in order to meet the demands of the customers on time and should schedule the production plan according. Customer relationship needs to be given more priority to achieve the optimum performance of the company. Keep in touch with existing customers; consider effectiveness of follow up on complaints. The company should take measures to reduce the cost of production. The company should try to meet the complaints of the customer on time The Company should take initiative in building a corporate and brand image of KML, through effective promotional activities. The company can expand their business operations in others districts as well. The company can think of automation of process and can reduce their man power to reduce the cost of operations. Promotional activities are less effective, so firm needs to spend more on promotional activities The pricing policy and marketing strategies must be reviewed. The company seniors should guide their subordinates at times of difficulty. The seniors should encourage the subordinates to do what they feel is best for the organization. This help to develop effective communication between various levels of management and employees in the organization. The top management should monitor the productivity of its employees. The company should focus on cost reduction techniques. The company has the potential for development of company and to become a global leader. The company should think of modernization of the entire process and departments. The company must consider exporting its products more to foreign countries and should collaborate with foreign companies in technology and marketing in order to keep up with the competition. Specialized workforce should be recruited in each department to check the accuracy of the products. The various departments can be supplied with more specialized work force. So, that efficiency can be increased.

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CONCLUSION:
KAR Mobiles Limited is the second largest manufactures of valves for internal combustion engines in India. It is a public limited company. KML was established in 1974. Currently it has two manufacturing plants at Bangalore and Tumkur with a combined capacity of 6.5 million valves per annum. The company commenced its commercial production in the year 1975 and the first invoice was made on 12/03/1975 to M/s Conwest private limited. The success story of this organization can be attributed to the continuous hard work put forth by the management. The managers understand the organizational principles well and try to adopt new developments in the field. Thus the welfare measures are provided keeping workers in mind as an asset. Current turnover of KML is about Rs 833.90(million) with employee strength of about 800. Exports constitute 50% of turnover. KAR Mobiles is the first vendor from India approved by General Motors-Electromotive Division, USA. In India approximately 26 million engine valves are sold every year and the major contributors are REVL, KML and SRIRAM. KAR Mobiles company is one of the domestic and international supplier of values for all engines both petrol and diesel driven and is fully equipped to support its developing market needs. The company should try to meet the demands of the customers on time and try to retain their prospective customers. There is a stiff competition in the market, so the company should promote the product more vigorously and to improve the visibility. Moreover the pricing policy and marketing strategies has to be reviewed and to take more effort in cost reduction, in order to convert the customers/agents offers into orders.

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ORGANIZATIONAL STUDY AT KAR MOBILES LIMITED BIBLIOGRAPHY


1. Company Document: Annual Report of KAR MOBILES LIMITED. For the year ending 31st March 2011.

2. Books: Philip Kotler, Kevin Lane, Abraham Koshy, Mithileshwar Jha, Marketing Management, Pearson Prentice Hall, 13th edition 2009 Prasanna Chandra, Financial Management, Tata McGraw-hill, 7th edition 2008 K.Ashwathappa, Human Resource Management, Tata McGraw-Hill, 2008, Production and Operation Management, Tata McGraw-Hill, 3rd Edition,

3. Website: www.acmainfo.com www.rane.co.in. (KAR MOBILES LTD website)

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