INTRODUCTION

Ashok Leyland is a commercial vehicle manufacturing company based in

Chennai, India. Founded in 1948, the company is one of India's leading
manufacturers of commercial vehicles, such as trucks and buses, as well as
emergency and military vehicles. Operating six plants, Ashok Leyland also makes
spare parts and engines for industrial and marine applications. It sells about 60,000
vehicles and about 7,000 engines annually. It is the second largest commercial
vehicle company in India in the medium and heavy commercial vehicle (M&HCV)
segment . With passenger transportation options ranging from 19 seaters to 80
seaters, Ashok Leyland is a market leader in the bus segment .The company claims
to carry over 60 million passengers a day, more people than the entire Indian rail
network. In the trucks segment Ashok Leyland primarily concentrates on the 16
ton to 25 ton range of trucks. However Ashok Leyland has presence in the entire
truck range starting from 7.5 tons to 49 tons. The joint venture announced with
Nissan Motors of Japan would improve its presence in the Light Commercial
Vehicle (LCV) segment (<7.5 tons).

The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by
independent India. Pandit Jawaharlal Nehru, India’s first Prime Minister,
persuaded Mr Raghunandan Saran, an industrialist, to enter automotive
manufacture. The company was established in 1948 as Ashok Motors, to assemble
Austin cars. The company’s destiny and name changed soon with equity
participation by British Leyland and Ashok Leyland commenced manufacture of
commercial vehicles in 1955. Today the company is the flagship of the Hinduja
Group, a British-based and Indian originated transnational conglomerate.

In 1968, production of the Leyland Titan ceased in Britain, but was restarted by
Ashok Leyland in India. The Titan PD3 chassis was modified, and a five speed
heavy duty constant-mesh gearbox utilized, together with the Ashok Leyland
version of the O.680 engine. The Ashok Leyland Titan was very successful, and
continued in production for many years.

Through tie-ups with global technology leaders, supplemented by in-house R&D

infrastructure and capabilities, Ashok Leyland has maintained its technological

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leadership even as it offers the most comprehensive range of model configurations
in its class.

In the journey towards global standards of quality, Ashok Leyland reached a major
milestone in 1993 when it became the first in India's automobile history to win the
ISO 9002 certification. The more comprehensive ISO 9001 certification came in
1994, QS 9000 in 1998 and ISO 14001 certification for all vehicle manufacturing
units in 2002. In 2006, Ashok Leyland became the first automobile company in
India to receive the TS16949 Corporate Certification. The company has increased
its rated capacity from 50,000 vehicles per annum to nearly 77,000 vehicles per
annum. Also further investment plans including putting up two new plants in North
India are fast A foot. After expansion, the company shall attempt to dominate the
medium- and heavy-duty commercial vehicles market in India.

Achievement’s of Ashok Leyland:-

1966:-Introduce full air brakes.

1967:- Launched double-decker bus.

1968:- Offered power steering in commercial vehicles.

1979:- Introduced multi-axle trucks.

1980:- Introduced the international concept of integral bus with air suspension.

1982:- Introduced vestibule bus.

1992:- Won self-certification status for defense supplies.

1993:- Received ISO 9002.

1997:- India's first CNG powered bus joined the BEST fleet.

2001:- Received ISO 14001 certification for all manufacturing units.

2001:- Launched hybrid electric vehicle.

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VISION

Be among the top Indian corporations acknowledged nationally and internationally

for
- Excellence in quality of its products.
- Excellence in customer focus and service.

MISSION

Be a leader in the business of commercial vehicles, excelling in technology, quality

and value to customer fully supported by customer service of the highest order and
meeting national and international environmental and safety standards.

GEMBA

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

GEMBA KAIZEN

Three ground rules for practicing kaizen in Gemba.

1. House Keeping
2. Muda Elimination [Waste Elimination]
· Waste of over production
· Waste of inventory
· Waste of waiting
· Waste of Motion
· Waste of transportation
· Waste of Producing Rejects
· Waste of processing
3. Standardization.

GEMBA MISSION

· Increase in the number of GEMBA

· CMI (Cost management initiative)
· Inventory Initiative, quality and safefy
· Critical machine uptime
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 Product of Ashok Leyland
1:-Buses

Leaders in the Indian bus market, offering unique models such as CNG, Double
Decker and Vestibule bus.

2:-Trucks:-

Pioneers in multi axle trucks and tractor-trailers.

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3:- Engines:-

Diesel engines for Industrial, Genset and Marine applications, in collaboration

with technology leaders.

4:- Defence & Special:-

Largest provider of logistic vehicles to the Indian army.

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 CUSTOMER BASE AND SEGMENTATION
Ashok Leyland, over five decades in the transport solution industry, offering a
world class range of trucks, buses, special application vehicles, and engines,
touching millions across 40 countries world wide. Ashok Leyland has a good
customer base most of the customer who comes to Ashok Leyland become a loyal
customer .

Ashok Leyland is Brand name with the flagship of Hinduja group. To sell is to
know your customers. Ashok Leyland has built-up a data base of 130,000
customers. The information captures the business nuances of the customers and
shows Ashok Leyland precisely where and how the customer would use trucks.
The company today knows much more about its customers today than earlier.

Ashok Leyland has a large customer base for public transport buses, commercial
vehicals, defence and special vehicles for special purpose it caters to different class
of society which includes individual buyer, industrial buyer, government buyer and
defence also.

Segmentation of Ashok Leyland can be done on the basis of it’s user:-

Segmentation

Industrial user Defense user

Public user Government user

INDUSTRIAL USER:- Industrial user includes transporter, logistics company,

coal and mining industry and other industries etc.

PUBLIC USER:-Public user includes individual or passenger transport .

GOVERNMENT USER:- Government user include state and central transport

like DTC,UPSRTC and other.

DEFENSE USER:- Defense user include Indian army trucks, tanks and transport
buses.

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 COMPETITION OF ASHOK LEYLAND WITH OTHER
AUTOMOBILE SECTOR
COMPETITION WITH TATA MOTORS:-

Ashok Leyland Ltd. will introduce 15 new truck models as India's biggest truck
makers by sales seek to beat growing competition from Tata motors. The new
truck models under its new U-Truck platform by March 2011,The trucks will be
between 16 tonners and 49 tonners. To Compete with Ashok Leyland Tata motors
will also introduce three new heavy trucks in India by March from its Prima range
of so-called world trucks. As, we had seen that Ashok Leyland low floor buses
giving tide competition to Tata motors low floor buses in Delhi.

COMPETITION WITH EICHER:-

Eicher is also one of competitor of Ashok Leyland, Eicher began its business
operation in 1959 with Tactor, but now Eicher had expanded it self with Truck’s,
Buses, Gear box, etc. Eicher is giving competition to Ashok Leyland with Truck’s
and Buses, Eicher small trucks are making there good market in India.

COMPETITION WITH MAHINDRA:-

Mahindra had also launched a truck in collaboration with Navistar Inc. USA on
Indian roads known as Mahindra Navistar, which is going to give tuff competition
to Ashok Leyland.

With a commanding strength of the about 12,000 employees the company is

looking forwards to enhance the scope of its action. It is aiming at expanding its
production operation overseas to make it a more globally accessible company. It is
looking to acquire a small to medium sized commercial vehicle manufacturers in
China and other developing nations, which have an established product line. An
example would be the 2007 acquisition of the Czech based Avia’s truck business
rechristened Avia Ashok Leyland Motors.

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 TRANSFORMATION PROCESS IN ASHOK LEYLAND

OPERATIONAL STRATEGY OF ASHOK LEYLAND

Design of Goods and Services: AL addresses this strategic decision area of

operations management through technological advancement and quality. The
company uses its R&D investments to ensure advanced features in its
products. It also integrates dealership personnel needs in designing aftersales
services.

Quality Management: Quality is one of the key factors. Also, the

firm addresses this strategic decision area of operations management through
continuous improvement.

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 Process and Capacity Design: For this strategic decision area of operations
management, It uses lean manufacturing. The company emphasizes waste
minimization to maximize process efficiency and capacity utilization. Thus,
It supports business efficiency and cost-effectiveness in its process and
capacity design.

Location Strategy: It uses global, regional and local location strategies.

Thus, It addresses this strategic decision area of operations management
through a mixed set of strategies.

Layout Design and Strategy: Layout design in Ashok Leyland

manufacturing plants highlights the application of lean manufacturing
principles. In this strategic decision area of operations management, the
company aims for maximum efficiency of workflow.

Job Design and Human Resources: The firm emphasizes respect for all
people, and this is integrated in HR programs and policies. Also, It has
training programs to ensure lean manufacturing practice.

Supply Chain Management: It uses lean manufacturing for supply chain

management. In this strategic decision area of operations management, the
company uses automation systems for real-time adjustments in supply chain
activity. In this way, It minimizes the bullwhip effect in its supply chain.

Inventory Management: In addressing this strategic decision area of

operations management, It minimizes inventory levels through just-in-time
inventory management. The aim is to minimize inventory size and its
corresponding cost.

Scheduling: It follows lean manufacturing principles in its scheduling. The

company’s goal for this strategic decision area of operations management is
to minimize operating costs. Cost-minimization is maintained through HR
and resource scheduling that changes according to market conditions.

Maintenance: For decades, It developed a network of strategically located

facilities to support its global business. The company also has a global HR
network that supports flexibility and business resilience. Thus, in this
strategic decision area of operations management, It uses its global business
reach to ensure optimal and stable productivity.

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 MANUFACTURING PROCESS FLOW CHART OF ASHOK
LEYLAND

Purchase of raw material

Components machined

Rough Drilling Finish Washing Boring End Milling Assembly of

Milling Milling Milling Bearing caps

Engine Assembly

Fixing of Crankshaft and Bearing Caps

Fixing of Camshaft

Fixing of Assembly of Fitting of Compressor Fitting of Fitting of

Flywheel Housing Oil Pump Stainer Fitting Oil Coolant Belt

Final Product

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 DIAGRAM SHOWING THE LAYOUT AND FLOW OF
MATERIAL

There are 3 stages of Frame Assembling

And 13 stages of Chassis Assembling.

Stage 1
Mounting of side members,
Mounting of cross members

Stage 2
Mounting of front spring
Rear, rear spring middle.

Stage 3 Passing stage

Fitting of engine
Mounting. Checking and Tilting

Stage 4
Side members fastening
To torque limit.

Stage 5

Fitment of FES rear

brackets

Stage 8 Stage 7 Stage 6 Stage 5 Stage 4 Stage 3 Stage 2 Stage 1

FES DRESSING:-FITTING OF SEATS,

Stage 9 Stage 10 Stage 11 Stage 12 Stage 13
ELECTRICAL WIRING, FLINK VALVE
FITTING.

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STAGE 1: Radiator mounting brackets, Air tank mounting , Air cleaner mounting
bracket, battery mounting bracket, grease nipple fitment, Bellcom lever mounting.

STAGE 2: DC valve mounting, Oil piping, Clutch oil piping, Quick release valve
mounting.

STAGE 3: Spring fitment, frame punching

STAGE 4: Silencer fitment, first axle mounting.

STAGE 5: Second axle mounting, slack adjustment

STAGE 6: Fuel piping, Air piping, Air filter mounting, Diesel filter mounting,
Steering box mounting.

STAGE 7: Engine mounting, fuel tank mounting, Diesel filter mounting,

Steering box mounting.

STAGE 8: Radiator fitment, Radiator supports tightening, Rear lamps

fitting, Turbocharger outlet pipe connection and Radiator hose connections.

STAGE 9: Exhaust piping, Shock absorber fitment (front and rear), Battery
mounting and connection of circuits, battery casing fitment and second
propeller shaft mounting.

STAGE 10: Tyre mounting, Maxcut checking.

STAGE 11: FES mounting, Electric fitments (male-female connecting process).

STAGE 12: Bumper fitment, FES wiring, Universal Joint (UJ) fitment with
steering handle, ABC fitment and connecting.

STAGE 13: Greasing of joints, nuts, etc., off track arrangements.

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 MANUFACTURING PLANT LOCATION
The location of the company is very good and safe in sufficient area.
The factories of Ashok Leyland are at Ennore, Bhandara (Maharashtra), Hosur (2
units) and Alwar.

But I would consider the location at Ennore, Bhandara (Maharashtra) as they get
raw material easily for production. This area is the best as it the main hubspot of
India and more people are available who leaves a lavish lifestyle.

FACILITY LOCATION PLANNING

Markets

Power Raw
supply material
faciity
location
planning

skillful basic
labour amenities

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 Availability of power supply – The regular supply of the power ensures no
stoppage in work.Uninterrupted power supply is a basic requirement of
ceramic tiles. And water is an essential requirement. So the location should
contain sufficient water & continuous power supply.

Proximity to raw material – It will ensure regular supply of the raw

material and reduce transportation cost.Most ceramic industries are in
Morbi& Rajasthan because these are the suppliers of good quality Raw
material .Row materials are cheaper because of negligible transportation
cost. Also, it becomes easier to control quality.

Proximity to customer – The transportation and other overheads are likely

to decrease with no distance between plant and market.When the customers
are located near the plant, product can be easily supplied to them. This can
reduce cost of product so plant will be near the Ahmadabad, Surat, Rajkot,
Bhavnagar etc like big markets. Proximity to market allows companies to
meet any sudden spurt in demand, thus providing an advantage over
competitors located at far off places.

Basic facilities – Basic facilities ensures quality of work life and attract the
good labour. The area for location of plant should have water supply because
in this business water requirement is more. Roads up to the factory premises
are always desirable.

Availability of cheap, skilful and efficient labour - Skillful labor is needed

in every manufacturing firm who can finish work on time and as per the
requirements.Here the case is given for the ceramic industry where plant
manager wants to establish a new factory.

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 QUALITY ASSURANCE OF ASHOK LEYLAND
Ashok Leyland believe that our impressive strides in the marketplace stem in
equal parts from our proactive approach and our customers' unstinting support,
earned the only way Ashok Leyland know: by giving our customers the most
appropriate transport solutions for each of their applications, and by backing them
up with consultancy, finance, driver training and a responsive after-market
network. Ashok Leyland are conscious of the fact that vehicles are more than just
a means of transporting people and goods; Ashok Leyland understand that they
have a deep and far-reaching impact on society, the national economy and the
environment.

Ashok Leyland have, therefore, always endeavoured to engineer products and

systems that promote progress on all these fronts. Ashok Leyland firmly believe
that this honest approach will make the Ashok Leyland marquee the symbol of the
very best in transportation, today and tomorrow.Ashok Leyland care for there
customer,they try to give best quality engineering as well as best quality service to
there customer.

The major characteristic through which Ashok Leyland give the best quality to
there customer are:-

* Reliability

* Maintainability

* Safety

* Strength

* Performance

* Features

* Conformance

* Durability

* Service

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* Response

*Aesthetics

* Reputation

Ashok Leyland is committed to achieve customer satisfaction by anticipating and

delivering superior value to the customer in relation to their own business, through
the products and services offered by the company and comply with statutory
requirements.

(1). Superior products manufactured as also services offered by the company.

(2). Maximum use of employees potential to contribute to quality and

environment by progressive up gradation of their knowledge and skills as
a0ppropriate to their functions.

(3). Seamless involvement from suppliers and dealers in the mission of the
company to address customers changing needs and protection of the
environment.

For the Quality assurance Ashok Leyland completed journey towards global
1standards of quality, history to win the ISO 9002 certification. The more
comprehensive ISO 9001 certification came in 1994, QS 9000 in 1998 and ISO
14001.

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 SUPPLY CHAIN MANAGEMENT AT ASHOK LEYLAND
It has been found that the Automobile Giant Ashok Leyland Ltd, Chennai, has got
one of the very successful Supplier development Program as part of its World-
Class Supply Chain Management.
Mission Statement of the Company: "Our Vendors are our valued partners in our
business development and we shall work with them in a spirit of mutual co-
operation to meet our business objectives."
* Vendor Development and Strategic Sourcing are handled by Corporate Materials
Department (CMD).

- CMD identifies the vendors, rates the vendors based on feedback received from
Supplier Quality Assurance Cell, sends drawings / specifications, calls for quotes
with detailed break-up of operation-wise costs, and negotiates the price at which
the parts will be supplied.

- In addition to CMD at Ennore, and the two Units at Hosur, there are Materials
Management Departments (MMDs) for scheduling based on unit production plan.

* Vendor Development of Strategic Sources

- Strategic Sourcing is central to the integrated Materials Management function.

Ashok Leyland's policy is to develop a vendor base committed to continuous
improvement to meet quality, cost and delivery standards.

- Ashok Leyland considers its vendors as partners in progress and believes in

establishing mutually beneficial relationships. Ashok Leyland provides necessary
technical assistance in the form of Project and Production Engineering, to maintain
quality levels. In addition, where required, Ashok Leyland also helps vendors
financially.

SCM one of the important task to improve,because some time before,The company
was facing the huge task of integrating its entire supply chain and at the same time
it had to reduce its costs, inventory, and improve customer satisfaction. Rising raw
material cost was a serious concern for the company. Therefore, Ashok Leyland
decided to streamline its supply chain process and the

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company started its SCM project ‘Oscars’ to optimise its supply chain and
rationalise its sources.
The project ‘Oscars Inbound’ included supplier partnership, vendor base
rationalisation, tiering of suppliers and cluster information, inventory optimisation
through JIT and LCL, total cost management, logistics initiatives, e-sourcing and
global sourcing.

DRAWBACK

As Ashok Leyland is giving it’s best to it’s customer but then also there are some
drawback :-
 The domestic sales of the company are not up to the mark.
 Ashok Leyland has not got a foothold in the luxury trucks segment in its
domestic market.
 Ashok Leyland have low cost advantage over its competitors, once the
competitors find out the low cost production methodology then there will no
competitive advantage.
 CNG buses of Ashok Leyland are also not playing well on the roads, some
or other break down creating problem for them.
 Some of the automobile company are going to launch HMV to give
competition to Ashok Leyland and till now Ashok Leyland not got any
alternative to compete with it.

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 CONCLUSION
Ashok Leyland has got the world class engineering and To offer world-class
technology that is relevant and affordable to the Indian customer is the philosophy
that drives R&D at Ashok Leyland.The role of Ashok Leyland is central in
fulfilling the company-wide commitment to total customer Satisfaction.Ashok
Leyland has achived ISO 9002 in 1993 and received ISO 14001 certification in
2001 and many others.There are many world class product of Ashok Leyland like
Buses for Public transport Purpose,Trucks for commercial purpose,vehical for
defense purpose and many Other world class equipment.

As we know through this project that Ashok Leyland is also one of the leading
automobile manufacturer in the world and it also came to know that:-

Provide World class technology:-

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

Provide Value to the customer:-

The immediate R&D priorities are to pro-actively address safety and
environmental issues, harness and adopt technologies that provide value to the
customer in an atmosphere enabling creativity and innovation. Powering those who
"engineer tomorrows" with an enabling infrastructure has been top priority for the
company.

Keep innovating there product:-

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

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.

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