Table of Contents Chapter No.

1 Topic Introduction Objectives of the study Sources of Data Industry Profile Company Profile Objective Literature Review Research Methodology
• • Sources of data Method of data collection

Page No.

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3 4

Analysis and Interpretation Findings Suggestions Conclusions Annexure

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1. INTRODUCTION
Ashok Leyland is a well known automobile manufacturing company in India. Ashok Leyland believe that its historical success and future prospects are directly related to combination of strengths. The referred unit is a core limb of Ashok Leyland, the nation’s pioneering automobile manufacturer. The study includes the brief study of the core departments of Ashok Leyland, Chennai. Different officials working in various departments have provided very important data in this report. Every effort has been made to understand the functions and activities of various departments as well as the manufacturing process.

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1.1. OBJECTIVES OF THE STUDY
• • • • • To study the recruitment and selection procedure followed at Ashok Leyland. To study the various sources of recruitment followed at Ashok Leyland. To learn what is the process of recruitment and selection that should be followed. To study the relationship between the human resource department and other departments. To give valuable suggestions to improve the process of recruitment and selection.

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SOURCES OF DATA The methodology used for the study is through the collection of primary and secondary data.1. Secondary data 4 . Primary data • • • • • • Direct observation Live discussion with the managers and the staff members. Annual Reports Business Journals Existing Records Website of the company.2.

S. The several methods adopted by Ford. The range of the automobile. In addition. beginning in the early 1980s.2. was very brief and at the most. This automobile. and required ample starting time. after the end of Second World War in 1945.S automobile industry was flooded with foreign automobile companies. whereas the automobile industry in the developing nations. such as India and Brazil. INDUSTRY PROFILE: AUTOMOBILE INDUSTRY HISTORY: In the year 1769. Cugnot invented the first automobile to run on roads. Oliver Evans was the first to design a steam engine driven automobile in the U. The current trends of the Global automobile industry reveal that in the developed countries the automobile industry are stagnating as a result of the drooping car markets. The automobile industry finally came of age with Henry Ford in 1914 for the bulk production in cars. made the new invention ie) car. however. these automobiles were not fit for the roads as the steam engines made them very heavy and large. especially those of Japan and Germany. However. According to the history of automobile industry U. in fact. military tractor that made use of steam engine. dominated the automobile markets around the globe with no notable competitors. it could only run at a stretch for fifteen minutes. was a self-powered. a French engineer by the name of Nicolas J. This lead to the development of the industry and it first begun in the assembly lines of his car factory. the U. have been consistently registering higher growth rates every passing year for their flourishing automobile markets.1. PROFILE OF THE STUDY 2. popular amongst the rich as well as masses. 5 . the automobile industry of other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period.S. three wheeler.

. After 1960. Ltd.. The automobile industry in India is the seventh largest in the world with and annual production of over 2. the automobile industry saw rapid growth and many automotive manufacturers started production. General Motors Pvt. Ashok Leyland... Hyundai Motors India Ltd. Yamaha. Thus the role of automobile industry cannot be overlooked in the Indian economy. Bajaj etc. defence vehicles . auto rickshaws and other multiutility vehicles are manufactured by Tata-Telco. In 2009...6 million units in 2009. Indian automobile industry includes manufacture of trucks. Maruti Udyog. Honda Motorcycle & Scooter India Pvt. the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation’s roads. to name a few. buses. Toyota Kirloskar Motor Ltd. Hero Honda.. Mahindra and Mahindra etc. A well developed transport network indicates a well developed economy. Eicher Motors. behind Japan. Ltd. two-wheeler manufacturing and heavy vehicle manufacturing units. South Korea and Thailand.INDIAN AUTOMOBILE INDUSTRY: India is one of the fastest growing automobile industries in the world. 6 . Ltd. Also.two wheelers etc. passenger cars. Fiat India Pvt. As India’s transport network is developing at a fast pace. The industry can be broadly divided into the car manufacturing... For rapid development a well-developed and well-knit transportation system is essential... The major car manufacturers are Hindustan Motors. Bajaj. defence vehicles. India emerged as Asia’s fourth largest exporter of automobiles. Honda Siel Cars India Ltd.. Ford India Ltd. Skoda India Pvt.. By 2050. Indian automobile industry is growing too. The heavy motors like buses. trucks. The two wheeler manufacturing is dominated by companies like TVS. Ltd. the automobile industry has strong backward and forward linkages and hence provides employment to a large section of the population.

Some vital statistics regarding the automobile market in India has been mentioned below: • • • • India ranks 2nd in the global two-wheeler market India is the 4th biggest commercial vehicle market in the world India ranks 11th in the international passenger car market India ranks 5th pertaining to the number of bus and truck sold in the world. buses or defence vehicles. machines. Tata. better direction competence and a muscular body. joint ventures. be it heavy vehicles. exports and financial collaborations. The heavy vehicles manufactured by Tata Motors have highly developed braking structure. Ashok Leyland is also renowned for producing auto spare parts and engines for marine and industrial submission. ambulances and school buses. Eicher. strategic alliances. It is the market leader in commercial vehicles in all the segments. HEAVY VEHICLES MARKET: Heavy vehicles market in India comprises of trucks. increasing purchase power and launch of latest products. high ground authorization. 7 . Ashok Leyland and Swaraj Mazda. military vehicles and also the second biggest commercial vehicle firm in India heavy vehicle division with a market share of around 27%. It is one of India’s biggest producers of heavy vehicles such as trucks. Following are the major players in the Indian Heavy Vehicles Market: • Tata Motors is the largest automobile manufacturing company in India that manufactures a wide range of heavy vehicles adhering to world class standards. The auto market in india can boast of attractive finance schemes.INDIAN AUTOMOBILE MARKET: Many foreign companies have been investing in the Indian automobile market in various ways such as technology transfers. Tata Motors leads this segment with a market share of 61%. buses. small vehicles. The advanced engine imparted to these heavy vehicles makes them a class apart from the other heavy vehicles running on the Indian roads and Highways. • Ashok Leyland is an exclusively heavy vehicle manufacturing company situated in Chennai and was initiated in the year 1948. The popular heavy vehicle brands in India are Volvo. medium size vehicles. Telco.

The modern automobile market in India has been considering key issues in the process of growth: • • • • • • • Customer care. The firm manufactures various products such as Bus. • Swaraj Mazda. 8 . a tie up between Mazda and Swaraj Enterprise. 1960. Trucks etc. alternate fuels like CNG and LPG and probably customized internet automobile orders. and not just service Domestic as well as multi-national investments Searing through cut-throat competition Road safety Anti-pollution norms Co-ordination with government to enable advancement Used vehicle trade The future of Indian automobile market is bright as it looks forward to manufacturing and implementing new innovations such as electric cars as provided by Reva. Ambulance. when Goodearth Company was established for vending and repairs of imported tractors in the nation.• Eicher Motors was initiated in 3rd September. The firm has Research and Development improvement edge on international scale. The history of the firm can be traced back to 1948. The first firm to manufacture the first tractor in India. Swaraj Mazda represents advanced Indian expertise and manufacturing. The indigenously manufactured tractor was introduced in the Indian market straight from Eicher’s Faridabad factory.

2. COMPANY PROFILE: Ashok Leyland has been a major presence in India’s commercial vehicle industry since 1948. engines for industrial purpose. Pandit Jawaharlal Nehru. Ashok Leyland at the time of its inception was known as Ashok Motors. Ashok Leyland has been the technology leader in India’s commercial vehicle industry. near Chennai. in 1954. In 1987 the overseas holding by LRLIH (LAND ROVER LEYLAND INTERNATIONAL HOLDINGS LIMITED) was taken over by a joint venture between the Hinduja group. felt by independent India. to enter automotive manufacturing. 9 . The Hinduja group also associated with Ennore Foundries Limited. and Gulf Ashley Motors Limited. In 1950. The origin of Ashok Leyland can be traced to the urge for selfreliance.2. the company started assembly of Leyland commercial vehicles and soon the local manufacturing under license from British Leyland. Automotive Coaches and Components Limited. the year it was born. the company was re christened Ashok Leyland. It was assembling Austin cars at the first plant. Ashok P Hinduja is the chairman of the company. at Ennore. participation in the equity capital. an industrialist. gen sets and marine requirement equipments. the Non Resident Indian Transnational group and IVECO Fiat SPA part of the Fiat group and Europe’s leading truck manufacturing company. India's first Prime Minister persuaded Mr. molding the country’s commercial vehicle profile by introducing technologies and product ideas that have gone on to become industry norms. For over five decades. Raghunandan Saran. They are one of the India’s leading manufactures of commercial vehicles and special vehicles.

Ashok Leyland has seven manufacturing plants 10 .000 employees the company is looking forwards to enhance the scope of its action.The subsidiary holdings are Ashley Holdings Ltd. An example would be the 2007 acquisition of the Czech based Avia’s truck business rechristened Avia Ashok Leyland Motors. • • • Mahindra Volvo Tata Motors With a commanding strength of the about 12. Ashley Investment Ltd. Ashok Leyland offers a wide range of products. marine and genset applications. It is looking to acquire a small to medium sized commercial vehicle manufacturers in China and other developing nations. Ashok Leyland has been a major presence and these years have been punctuated by a number of technological innovations which went to become industry standard. and Ashok Leyland Project Services. The chief competitors of the company are.5 tonne to 49 tonne in haulage vehicles. from numerous special application vehicles to diesel engines for industrial. Since its inception. which have an established product line.. This tradition of technological innovations and leadership was achieved through years of vigorous in-house research and development.. from 7. It is aiming at expanding its production operation overseas to make it a more globally accessible company. From 18 seater to 82 seater double-decker buses.

four out of five state transport undertaking buses come from Ashok Leyland. Travancore State Transport. It sells close to 83. Alwar. Some of them like the Double Decker and Vestibule buses are unique models from Ashok Leyland. Chennai.• • • • • Ennore Plant.000 medium and heavy vehicles each year. The Five AL Values are: 1. Value Creator 4. International 2. Pantnagar. At 60 million passengers a day. Innovative 5. Rajasthan. Ahmedabad Municipality. tailor made high-density routes. Hosur Plants Unit I. Ashok Leyland buses carry more people than the entire Indian Railway network. Unit II and Unit II A. The company has a near 98. Ethical 11 . Bhandara. Maharashtra. Uttarakhand Early products of Ashok Leyland included the Leyland Comet bus chassis sold to many operators including Hyderabad Road Transport.5% market share in the Marine Diesel engine markets in India. Bombay State Transport and Delhi Road Transport Authority. Statistics reveal that the company is India’s largest exporter of medium and heavy duty trucks. In the popular metro cities. Speedy 3.

ASSOCIATE COMPANIES: • • • • • • • Automotive Coaches & Components Ltd (ACCL) Lanka Ashok Leyland Hinduja Foundries IRIZAR – TVS Ashok Leyland Project Services Ltd Gulf Ashley Motors Ltd Ennore Foundries Ltd 12 . 2000 – Euro-I. 2003 – E-Comet launched.000 mark vehicle produced. 1979 – Multi-axle trucks introduced. Engines/vehicles introduced. 2002 – Exclusive Machine line – 2 for Hino cylinder. 1998 – QS 9000 Certification 1999 – CNG (Compressed Natural Gas) introduced.GROWTH MILESTONES OF ASHOK LEYLAND: 1966 – Full air brakes introduced 1967 – Double Decker buses introduced. 2004 – 50. 1980 – Integral bus with air suspension. 2006. 1992 – Self-certification status for defence supplies.ISO/TS 16949 Corporate Certification. 1994 – ISO 9001 Certification 1997 – India’s first CNG powered bus. 2002 – ISO 14000 Environment Management System Certification. 1968 – Power steering offered.

This plant is expected to go on stream in the year 2010 to cater mainly to the North Indian market taking advantage of the excise duty and other tax concessions. Maharashtra 7) Pantnagar. that apart from modern test tracks and component test labs. at Vellivoyalchavadi in the outskirts of Chennai. The new plant in the North Indian state of Uttarakhand at Patnanagar is set up at an investment outlay of Rs. Tamilnadu 5) Alwar. also houses India’s one and only Six Poster testing equipment. Tamilnadu 2) Hosur: Unit 1. Tamilnadu 3) Hosur: Unit 2. Rajasthan 6) Bhandara.FACILITIES: • The company has seven manufacturing locations in India 1) Ennore. • • The company has an Engine Research and Development facility in Hosur. • The company has signed an agreement with Ras Al Khaimah Investment Authority (RAKIA) in UAE for setting up a bus body building unit in the Middle east. is a state-of-the-art product development facility.1200 crores. Uttarakhand • Ashok Leyland’s Technical Centre. At full capacity utilization. 13 . 75000 vehicles will roll out of the Patnanagar plant. The facilities have been so designed as to accommodate further expansion in terms of capacity and future models. Tamilnadu 4) Hosur: Unit 2A.

 Parveen Travels.  Sharma Transport.  Kerala State Road Transport Corporation.  US Army.  State Express Transport Corporation (SETC). Chennai.  Andhra Pradesh State Road Transport Corporation (APSRTC).  Honduras Armed Forces (HAF).CLIENTS (Not exhaustive):  Indian Army.  Metropolitan Transport Corporation (MTC). 14 . Tamilnadu.  Maharashtra State Road Transport Corporation (MSRTC).  Tamilnadu State Transport Corporation (TNSTC).

through the products and services offered by the company and comply with statutory requirements.VISION Achieving leadership in the medium/heavy duty segments of the domestic commercial vehicle market and a significant presence in the world market through transport solutions that best anticipate customer needs. against the best in the industry. Seamless involvement from suppliers and dealers in the mission of the company to address customers changing needs and protection of the environment. QUALITY POLICY Ashok Leyland is committed to achieve customer satisfaction by anticipating and delivering superior value to the customer in relation to their own business. MISSION -Identifying with the customer. Maximum use of employees potential to contribute to quality and environment by progressive up gradation of their knowledge and skills as appropriate to their functions. to make them more robust and to enhance their effectiveness and efficiency in achieving stated objectives leading to 1. with the highest value -to-cost ratio. -Being the lowest cost manufacturer. processes and people. -Global benchmarking our products. the quality policy of Ashok Leyland is to make continual improvements in the processes that constitute the quality management system. 15 . Superior products manufactured as also services offered by the company. 2. Towards this. 3.

3. MANAGING DIRECTOR MAMANGIN ED CFO INTERNAL AUDIT ED PRODUCT DEVELOPM -ENT ED HR ED & COMPANY SECRETARY SPECIAL DIRECTOR BUSINESS PLANNING ED CONSTRUCTION & ALLIED BUSINESS SPECIAL DIRECTOR PLANNING & PORTFOLIO MGMT WHOLE TIME DIRECTOR & COO ED MFG ED MKTG ED PRODUCT PLANNING ED INTERNATIONAL OPERATIONS ED SALES & SERVICE 16 . ASHOK LEYLAND LTD.2. ORGANIZATION CHART OF M/s.

(AUTHORITY FLOW) MANAGING DIRECTOR WHOLE TIME DIRECTOR EXECUTIVE DIRECTOR SPECIAL DIRECTOR GENERAL MANAGER DEPUTY GENERAL MANAGER ASST. MANAGER SENIOR OFFICER 17 . GENERAL MANAGER DIVISIONAL MANAGER SENIOR MANAGER MANAGER DEPUTY MANAGER ASST.ORGANIZATION STRUCTURE OF M/s. ASHOK LEYLAND LTD.

FUNCTIONS OF THE MAJOR DEPARTMENTS SELECTED The major functional areas of the unit and the major departments which oversee those areas are catalogued as follows: a) HR Department b) Finance Department c) Marketing Department d) Production Department. A brief review of each department and its activities as follows: OFFICER 18 .3.

VALUE STATEMENT “We consider our employees as our most valuable asset and are committed to provide full encouragement and support to them. individual and social goal. 19 . developing and compensating HR resulting in creation and development of human relations with the view to contribute proportionately to the organizational. HUMAN RESOURCE MANAGEMENT Human resource management is defined as the managing function of employees. to enhance their potential and contribution to the company’s business”.a) HUMAN RESOURCE DEPARTMENT OF ASHOK LEYLAND LTD.

MANAGER -OFFICERS .HR MEDICAL OFFICER CHIEF SECURITY OFFICER -MANAGER -ASST.IR SR.MANAGER.ASST.DEPARTMENTAL STRUCTURE: ED.MGMT TRAINEE OFFICER 20 .HR DIRECTORMGMT DEVELOPMENT CENTRE-HOSUR GMMANAGEMENT DEVELOPMENT DGM-HR AGMOFFICE SERVICES DIVISIONAL MANAGER.MANAGER .

Lateral entries 21 . The process begins when new recruits are sought and ends when their applications are submitted. Consultancies 2. Campus recruitment 3. SOURCES OF RECRUITMENT The following are various external sources of recruitment: 1. The result is a pool of applicants from which new employees are selected.FUNCTIONS OF HR DEPARTMENT: 1) HR ACQUISITON • • • • • • • • • Recruitment Selection Training and development Organization development Performance appraisal Incentives and benefits Creating motivation environment Empowerment and participation HR Mobility 2) HR DEVELOPMENT 3) PERFORMANCE AND COMPENSATION 4) MOTIVATION 1) HR ACQUISITION  RECRUITMENT Recruitment is the process of ‘finding and attracting capable applicants for employment.

Interview a. The following is the process of lateral entry recruitment: 1. On the following basis they recruit the candidates    GETs . 2. Technical round interview c. The concerned persons for recruitment gets approval for filling the vacancies. Then the consultancies are approached telling the requirements. LATERAL ENTRIES They pick the experience candidates or people from other companies. If satisfied.Diploma Engineer Trainees ITI. The fit applications are mailed to attend the interview. Written test b. CAMPUS RECRUITMENT The recruitment panel goes to the reputed colleges to select the candidates. Sourcing 2.1. Personal Interview PROCEDURE FOR LATERAL RECRUITMENT  Pre-Selection  Selection  Post-Selection 22 . CONSULTANCIES The department heads where requirements are needed informs to the HR department about the requirement.Industrial Training Institute 3.Graduate Engineer Trainees DETs . they are called for the personal interview.

PHASE 1: PRE-SELECTION REQUIREMENT REQUISITION FUNCTIONAL HEAD HR APPROVING AUTHORITY IDENTIFICATION OF PROSPECTIVE CANDIDATE Job site search Internal references Hiring consultants Direct applicants 23 .

PHASE 2: SELECTION INITIAL HR SCREENING SCREENED RESUMES SENT FOR FURTHER SHORT-LISTING TO THE FUNCTIONAL HEAD PERSONAL INTERVIEW DISCUSSION AND FINAL INTERVIEW BY THE INTERVIEW PANEL 24 .

PHASE 3: POST SELECTION SALARY AND GRADE FIXATION BY APPROVED AUTHORITY INITIAL OFFER COMMUNICATED TO THE CANDIDATE NEGOTIATION WITH THE CANDIDATE OFFER NOT ACCEPTED HR INFORMS THE FUNCTIONAL HEAD AND CLOSES THE CASE HR INFORMS THE FUNCTIONAL HEAD ABOUT PROBABLE DOJ OFFER ACCEPTED HR ISSUES OFFER LETTER JOINING FORMALITIES NEW HIRES 25 .

Training programme is classified into • • • Skill Knowledge Attitude 26 . Purposive training and planned re-training have an acquired priority status on the corporate agenda. As they manage growth in a constantly changing environment. Centre stage in Ashok Leyland training endeavours is the management development centre. The selection procedure saves a lot of time and money by eliminating candidates who are not eligible for the post. STEPS IN SELECTION • • • • • • • • Receiving of application Preparing of shortlist by the department Verification of resume by department head Interview (one round) Psychological test Reference/Background information Final selection Placement 2) HR DEVELOPMENT  TRAINING Training is an on-going process aimed at capability-building of the employees at all levels. at Chennai and Hosur. In today’s competitive mileu. SELECTION The selection procedure is concerned with selecting the right candidate at right time for right place. organizations are increasingly turning to training to capture the cutting edge.

TRAINING PROCESS OF ASHOK LEYLAND LTD.The – Job Evaluation Learning Outlines Programme Design & Methodology Identification of Faculty Resource Effective Measures Schedule of Training Schedule of Training 27 Evaluation of Faculty Resource Evaluation of Training Programme ./ units 3600 Feedback Competency Mapping Quad 1 Executives Training Need Input Sources Yes Initiative Climate Survey Competency Mapping Training Effectiveness Training Plan Training Objectives On. Business Plan Performance Appraisal Priority Needs of depts.

Both internal and external training is given for associates. Laterals (7 days) GENMOD training program. In addition to some programmes like engineering drawing and waste elimination are also conducted. Behavioral 3.1day) middle managers (3 to 4 persons) is 3-4 lakhs WORKMEN CAPABILITY BUILDING Training & Development for the unionized employees at the manufacturing units is focused on skill development. Training for senior/middle level management is done on the following basis: 1. Guest lectures of external faculty and various other industrial visits will be arranged for associates. Functional  MANAGEMENT DEVELOPMENT PLAN Management development plan of Ashok Leyland focuses on the following competencies • • • • • People leadership Transformational leadership Project management capability Result orientation Entrepreneurial perspective 28 . They also get faculty from corporate level.Training programs in Ashok Leyland are: • • • • • • Quad 1 executives Competencies and priority needs of departments/ units E-learning Induction for DET (2 years) GET (1 year). General-Planning for retirement Budget spent for training (8hrs. TRAINING FOR SENIOR/ MIDDLE LEVEL MANAGEMENT Both external and internal training is given for the executives. Faculty from outside agencies will be arranged for training them. Technical 2.

Abilities (Job knowledge. goals) Part II. dependability.Training need (To improve performance in present job. 4. DEVELOPMENT ACTIVITIES The following are the developmental activities:      TEI – Total Employee Involvement CFG – Cross Functional Group QC – Quality Circles SS – Suggestion Scheme Re-deployment 3) PERFORMANCE AND COMPENSATION  PERFORMANCE APPRAISAL “Performance appraisal is the systematic evaluation of the individual with regard to his or her performance on the job and his potential for development” In Ashok Leyland graphical scale method is followed.. execution of plans) Part III. high-low. The appraisal form is divided into 8 parts where under each part separate sections are being covered.Performance in the present job (Employees achievements. The form consists of various employee characteristics and his job performance. 2 and 1 to denote points for various degrees of excellent-poor. to assume higher responsibility) 29 . strength. good-bad and so on. In this. it is also known as linear rating scale. analytical ability etc. commitment to achieve results at work) Part IV.. Ashok Leyland use numbers say 5. a printed appraisal form is used for each appraise. Various characteristics include initiative. II III) Part VI. 3. objectives. creative ability. activities. The rating is done on the basis of scale which is in continuum representing various degrees of particular quality.HR processes such as job evaluation and competency mapping will be dovetailed into the development plan to enhance objectivity and effectiveness. personality traits.Work behavior (Plans.Potential ( Areas of interest. leadership.Overall performance rating ( Based on assessment of part I. weakness) Part V. • • • • • • Part I.

complaints etc.Just meets minimum job requirements 1.Development plan (Job rotation. use or parts/service information) 3)Communication (Interaction with customers.. special assignment/ reputation) Part VIII. The appraisal form also consists of customer satisfaction survey where the need. It also follows graphical scale method using a five point scale based on the criteria 1)Quality ( Customer needs. timely feedback. . quality works. 2)Delivery (Delivery time. implementation & effectiveness of improvement and improvements at the customer end) Overall Customer Rating = 1+2+3+4+5 5  EMPLOYEE RETENTION Performance linked pay The company has an annual appraisal system in place and pursuant to this system.Good 2. point of use. listening to customer views.Other comments .).Performance which is consistently significant beyond job requirements contributes in related area also. annual variable pay and/or commission is paid to the employees..Consistently outstanding performance. service provider and period of assessment are all identified.Superior 3. .• • Part VII. Employee motivation 30 .Barely satisfactory . performance linked pay.Does not meet job requirement at all. service information. and review changes with the customer) 4)Responsiveness (Responding to customer complaints. job enlargement.Unsatisfactory . changes to customer needs) 5)Improvement (Positive attitude for improvement.Performance which adequately meets job requirements and occasionally produces good over and above requirements Five point scale of Ashok Leyland showing levels of performance: 5.Exceptional 4.

reimbursement of medical expenses and interest free loan 3) Medical reimbursement: Domiciliary expenses incurred on domiciliary medical treatment shall be reimbursed subject to the annual limits fixed from time to time. • • • • • • Canteen facilities Medical claims Transport facilities Ashok Leyland school for their children Scholarship schemes Recreation facilities  BENEFITS 1) Tuition fee refund: Reimbursement of expenses related to course fees. 2) Special Incentive Scheme. examination fees and amount as given by personnel administration. 4) Domestic travel: purchase of books is allowed upto 75% of amount spent per academic year subject to a maximum 31 . 2) Major medical plan: Benefits will be available within the laid down overall limits for self dependants viz. BITES. 100% CLUB and GEMBA passport scheme motivates people to contribute their ideas. Employee welfare schemes The following are the welfare schemes available to the employees.Ashok Leyland targets 100% of its employees to be involved in its continuous improvement activities. RISE. Reward systems such as IMPROVE.  INCENTIVES 1) Surcharge on Direct Booking Incentive.

5% of basic salary for every 6th day (optional) worked. casual leave (CL). This will stand withdrawn in the event of company transport being provided. 11) Retirement age: The age of retirement from company’s service will be the last day of the calendar month in which the executive attains the age of fifty eight years. All leave will be credited in January.7 days. Saturday): Executives in CG 25 (Corporate Grade) and below will be paid 7. 7) Group term insurance: It is in addition to the accident insurance cover provided by the company for executives. office phone calls. national and festival holidays. every year. other expenses such as local conveyances. 10) Leave: All executives are eligible for privilege leave (PL)-30 days. 6) Vehicle loan: Interest free loan upto 100% of the cost of a new two wheeler subject to a maximum limit stipulated from time to time. out of pocket expenses. the beneficiaries will receive benefit under both policies. 9) Maternity leave: Total period: 12 weeks leave with pay (6 weeks before delivery and 6 weeks immediately following the delivery) for lady executives. when an employee opts to makes his own arrangements . 3) MOTIVATION  CREATING MOTIVATING ENVIRONMENT GEMBA: 32 . 8) Sixth day compensation (ie. In the event of accidental death.7 days.Boarding and lodging expenses per diem allowance. The 6th day compensation as indicated above will be considered as salary for the purpose of contribution to PF and eligibility for bonus/ Exgratia. sick leave (SL). 5) Conveyance reimbursement: It is made on self certification of expenses by the executives.

SEITON. Standardization. 5s [SEIRI. GEMBA KAIZEN: Three ground rules for practicing kaizen in Gemba. 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. CMI (Cost management initiative) 5. Launched in June 2005 as a company. 1. with customers and business partners. EEI (Effort and Ergonomy index) 4. House Keeping 2. the place where the customer and the service come together. in a service business.SEISO. develop skills and empower employees to reach world-class levels in quality.wide initiative. GEMBA MISSION: N7i+1 New 7 initiatives 1.SHITSUKE] 3. It is also the quality of human interaction in the workplace between co-workers.SEIKETSU. The logic is simple and undisputable: value is created at the Gemba and the Gemba knows its work best. Critical machine uptime 33 .Gemba is a Japanese word meaning “Real Place” where the real action takes place. Gemba is the shop floor. Inventory Initiative 6. cost and delivery. Increase in the number of GEMBA 2. Mission Gemba’s objective is to provide information. In the manufacturing business.

If an employee does some good activity or work apart from his usual one he is being awarded with RISE. efficiency. • He has rendered a minimum period of qualification service of five years. Workman shall be considered for promotion to a post based on certain rules. • Fulfills prescribed attendance. When people leave the organization. skill. qualification etc. The management decides whether to fill a post of outside recruitment or through promotion.  EMPOWERMENT AND PARTICIPATION IMPROVE Improve is an annual company. • He possesses the qualification prescribed for the post to which he is to be considered. The common reasons given are: 34 ..7. RISE The expansion for RISE is Reward For Individual Search For Excellence. Exit interviews are usually conducted to know the reasons for leaving.wide event to record. find the solution and to implement it. Their main function is to identify the problem. eligibility for post .  HR MOBILITY PROMOTION OPPORTUNITIES Promotions is based on the seniority. It is an integrated award and is given to the associates. Safety. TQM – Total Quality Management The main objective of the TQM cell is to set human in a good manner to achieve the goals. Quality 8. recognize and award employees for their positive involvement in organizational growth innovation and customer satisfaction. The quality circle includes 6 people which include 5 associates and 1 executive.. SEPARATIONS Separation involves cessation of services of personnel from an organization.

• • Better opportunities Lack of growth  ALLOWANCES • • • • • • • • • House rent allowance Washing allowance Uniform and stitching allowance Night shift allowance Conveyance allowance Milk and vitamins allowances Flexibility allowance Quality certification allowance Direct production allowance 35 .

handling of litigations etc. Hosur-1. Finance function may be defined as the procurement of funds and their effective utilization. This is because in the modern moneyoriented economy. Hosur-2A. The same functions and responsibilities are allotted to the accounting and finance department of the manufacturing plants in Ennore. The FSG (Finance account Service Group) deals with the payables and recievables at regional offices. such as spare parts and a vehicle as whole. Pantnagar.b) FINANCE DEPARTMENT OF ASHOK LEYLAND LTD. Alwar. The Explore finance department deals with the FSG exporting of items. Finance is considered as the life blood of business.. Taxation section is responsible for remittance of tax. finance is one of the basic foundations of all kinds of economic activities. 36 .. Treasury section is responsible for all kinds of funding managements such as investments. Costing and Budgeting department is responsible for the unit costing of each product in particular.  RESPONSIBILITIES OF FINANCE DEPARTMENT: • • • • • • The pricing department is responsible for the fixing of prices for sales of the vehicles and for buying of raw materials and semi finished goods. Bhandara. filing of returns. Hosur-2.

DEPARTMENTAL STRUCTURE: MANAGING DIRECTOR

CFO Pricing Manufacturing Units

Treasury Ennore Direct Taxation Indirect Costing and Budgeting Hosur-2 Hosur-1

Corporate Consolidation

Hosur-2A

FSG
( Finance account Service Group)

Alwar

37

Bhandara Explore finance Pantnagar

DEPARTMENTAL STRUCTURE (AUTHORITY FLOW) MANAGING DIRECTOR

CHIEF FINANCING OFFICER

GM-FINANCE

DGM-FINANCE

AGM-FINANCE

DIVISIONAL MANAGER

SENIOR MANAGER MANAGER DEPUTY MANAGER

ASST. MANAGER

SENIOR OFFICER 38

OFFICER

 ROLE OF FINANCE: • • • • • • • • •  • • • • • • Recorder (accounting) of all Financial Transactions Reporting of Financial Performance Arranging long and short term funds – Capital and Debt Working Capital Management Compliance of tax and other corporate laws Risk Management Controllership function Audit coordination Investor Relations PROCESS & ACTIVITIES OF FINANCE: Quarterly, Half-yearly and annual results published as per listing requirements Limited Review / audit coordination. Annual Reports – Disclosures made are comprehensive; complied much before they become mandatory Early completion of accounts, audit process; forefront in adherence to accounting standards & other guidelines. Audit Committee – comprises of Stalwarts from the profession. Automation of processes

a) Financial Accounts

b) Financial Planning & Control

39

term loans etc.Funds Management . Exception reporting and Profit management measures form integral part of this process c) Treasury Management . Level of debt (Long-term): Rs. etc. • • • • • Major funds raising in AL include GDR of US$134 Mn.Long term funds: Shares. 2280. GDR. exceptions in all fronts. Direct investment in equity avoided. ECBs. Funds Management includes managing collections and outflows and surplus/deficit management. US$ 200 Mn. Surplus management includes investment in Fixed Deposits. Financial Instruments used include ..Debt Servicing . FCNR. market share. -Short term Funds: Cash credit.44 cr as on 31/3/10 Banking relationships for working capital is managed through Consortium of banks comprising of 14 banks – Fund based Rs. Commercial paper. Demand Loans. physical and financial parameters including alerts on laggards.• • • • Financial Planning includes estimating the amount of capital to be raised and laying down the policies as to administration of the financial plan.600 cr & Non-fund based Rs. Mutual Funds. 40 .Raising of Funds .750 cr. derisking is an important consideration in deciding the instrument. in Dec 2007. Capex and long term working capital requirements are funded through share capital and long-term debt.Risk Management • • • Financial instruments for Funds raising would depend on end use of funds. Closer working with Marketing and Units is vital. in 1995 & ECB of US$315Mn incl. Monthly review covers business volumes. etc. Debentures. Monthly MIS: Very Comprehensive with wider coverage and highly informative.

Wealth Tax) & Indirect Taxes (Excise. Risk Management is vital since organization is exposed to both currency as well interest rate risks.. FII etc. 41 f) Investor Relations e) Taxation . Tax planning is an important component of business decisions. Regular tasks include remittance of tax. In AL. Recent major developments include introduction of Service Tax legislation and VAT across many States. Monitoring of cost of production of various models and for make or buy decisions Project / capex evaluations for optimization and for making commitment decisions Compliance with Direct (Income Tax Act. handling of litigations etc. • Credit rating Long Term / WC CRISIL ICRA AA (-) LAA(-) Short Term P1+ A1+ d) Costing & Pricing • • • • • • • • • • • Strategic pricing of products. FII & Mutual Funds represent investment community who track company’s performance continuously very closely. Sales tax etc). Customs. Mutual Funds. quotes for various tenders. Special pricing for export contracts. Aligning the business process across the organization and maximizing the benefits against such legislations is a major task handled by Finance.• • Debt Servicing includes repayment of principal and payment of interest on due dates and ensuring that commitments made are adhered to. hold 32% of shareholding besides public who hold 10%. Service Tax. Results depend on how well they are managed. filing of returns. Risks offer both threats and opportunities (can increase income or reduce expenditure)..

availed based on best product available / rate offered STRATEGIC GOALS: • • • • • Raise resources to the tune of roughly US$ 1. address in TV etc. Management of daily funds • • • • Collections from 49 locations pooled under cash management system in to centralized accounts with consortium banks at Chennai.8 billion for funding expansion plans of AL.• • • Dissemination of data relating to company’s performance and developments very important and sensitive. Maximize tax efficiencies to improve cost competitiveness of products and improve viability of projects. Nissan and other JVs over the next 3 years Achieve optimum funding mix / restructuring of companies to minimize the cost of raising of funds. if any. Planning cash flows Rolling Quarterly cash forecast prepared and monitored weekly seeking explanation for variance in order to control and direct operations. individual meets. 42 . invested for tenor which is based on requirement of funds back in to the system. 2. Make globalization a reality through acquisitions and setting up of new ventures abroad by leveraging AL’s strengths. teleconferences. Surplus for the day. Various payments reported are collated and funded for in the various bank accounts depending on the expected debits. web-cast. Deficit funded through short term loans from banks. Presentations made are hosted in company’s website PLANNING & MANAGING CASH FLOWS: 1. Handled through presentations in periodic investor meet. Bench mark financial processes to the best in the world and improve the bar. maintain high standards of financial discipline.

FINANCIAL CHALLENGES AHEAD: • • • • • • • • • • Global slow down challenging break even. Increase in interest rates Business integration of overseas units. Need to fund major capex & investments – Rs.• Maintain excellent relations with international investor community through effective communication for international offerings. Profitability pressures due to changes in business mix and commodity price movements. Managing expectations of stakeholders 43 . Forex management – unforeseen volatility in major currencies. major investments in JVs Tackling financial covenant breaches. Decrease in Margins due to inability to pass on cost increases due to competitive pressures – partially compensated by increase in volumes. particularly important with forex loans Supporting inorganic growth – evaluation & funding of emerging options.2400 cr in the next 3 years.

18 1. in Lakh 2007-08 Sales Volume: Vehicle (numbers) Engine (numbers) Spare parts and others Net sales/Income from operations Gross operating margin Financial expenses Other income Gross profit (PBDT) Depreciation Profit before tax Profit after tax Paid up equity share capital (face value per share Re.FINANCIAL RESULTS: Rs.43 1.0 2009-10 63926 19050 88506 724471 76284 8113 7045 75216 20411 54477 42367 13303 3.5 2008-09 54431 21447 79969 598107 46944 11871 4962 40035 17841 20845 19000 13303 1.) Dividend per share (Rs.53 1.1 each) Basic earnings per share (Rs.) Comments: Significant reduction in material and operating costs supported by pricing action has improved margins in the year 2009-10 83307 11757 79124 774258 82038 4974 5760 82824 17736 65088 46931 13303 3.5 44 .

relieving the customers of all maintenance worries. Ashok Leyland has been offering world class products to millions of customers to 40 countries across the world. The market leader and pioneer for multi-axle trucks and tractortrailers. Marketing is concerned with the people and the activities involved in the flow of goods and services from the producer to the consumer. Offers “Total Maintenance Solutions” through maintenance contracts for its products. KEY ASPECTS OF APPROACH: SALES & SERVICE MARKETING CUSTOMER SUPPORT 45 .c) MARKETING DEPARTMENT OF ASHOK LEYLAND LTD. Its main product line include Trucks. Buses. Largest supplier of logistic vehicles to the Indian Army. Defence vehicles and special vehicles and engines for Indian and Overseas market. Gen-set and Marine applications . Enjoys market supremacy in diesel engines for Industrial. Ashok Leyland is • • • • • The market leader in Indian bus market offering CNG. Double decker and Vestibule bus variants.

SERVICE HEAD.KEY ACCOUNT STU & PROJECT SALES HEADPRICING HEADSALES ADMIN HEAD DISTRBUTION & INVOICE REGIONAL MANAGERS 46 .DEPARTMENTAL STUCTURE: CHIEF OPERATING OFFICER HEAD-DEFENCE SBU HEADENGINE BUSINESS ED.MKTG & CUSTOMER GROUPS HEAD.PARTS & CUSTOMER SUPPORT HEAD.FULLY BUILT SOLUTIONS HEAD.VEHICLE SALES & SERVICE HEAD ( CG LCV ) HEAD – MARKETING SERVICE HEAD – TQM HEAD-PARTS HEAD-AMC RECON VEHICLES DGMCUSTOMER SUPPORT GROUP HEADLCV HEADPROJECTS HEADTECH .MKTG HEAD.

They came up with a product related Ad campaign and a Corporate campaign. ASHOK LEYLAND. on the aspirational level. but as yet not communicated to the public. it denotes a warm and caring relationship with each stake holder in a unique way. At the All India PR awards 2007 conducted by the Public Relations Society of India (PRSI).THE BRAND: “ENGINEERING YOUR TOMMOROWS” has been Ashok Leyland’s Brand promise.components of the brand are the dynamic “L” logo and the name of Ashok Leyland. They gave a prelude to the campaign by exhibiting their product range and their field of pioneering. The second part of the company’s name has come to cue the international aspect while the 47 . economy and ecology. • • • “ONLY AN ASHOK LEYLAND ENGINEER WILL BE INSPIRED BY RAAG MADHUVANTI TO CREATE QUIETER LUXURY COACHES”. The name has historic reasons. Ashok Leyland won the second prize for their corporate campaign. which has always been their core brand value. It was broadcast on mainline news channels for wider coverage. that is the sum total of the essential values of vehicle technology-safety. The tag line finds expression at two levels: on the hard core strategy level. There were translites placed at airports for greater visibility. “ONLY AN ASHOK LEYLAND ENGINEER WILL CALCULATE THE RPM OF THE BALL. This was followed by a three ad campaign.and recognized. Also a television commercial was aired in 2007. “ONLY AN ASHOK LEYLAND ENGINEER WILL WATCH ‘TITANIC’ TO SPOT THE DESIGN FLAW IN THE SHIP”. comfort.Hindi and Tamil. Ashok meaning Happy is the name of the company’s founder Raghunandan Saran’s son. Brand values The two most visible. Innovative and Speedy. WHEN A ‘DOOSRA’ IS BOWLED”. The commercial was made in two languages.ADVERTISING: The need for advertising was felt by Ashok Leyland in 2006-07 when they had to project the transformation that has occurred within Ashok Leyland.and time less meanings. Their aim was to let their target audience perceive their brand as International.

transparent. As per the research. financially managed and innovative. Though the company has pioneered many product concepts. Brand Ashok Leyland is essentially and experiential brand. Also the company came up with a corporate identity manual which was strictly to be followed by all. so unmistakably Indian. it was perceived to be a slow. The tangible shift began with a change in the typeface of the brand name along with a baseline. future ready range of vehicles.first part. The content specified brand name usage in various areas. Thus emerged the new Ashok Leyland with a new face. sincere. its values felt in day to day lifemore palpably by its immediate customers and end users. The innards of Ashok Leyland vehicles have always been contemporary. The core of the brand has always been innovative. traditional. Also screening of its corporate film helped them gain publicity. In 2006. Ashok Leyland felt a need for change in perception of image among its public after its research feedback by its brand study. The core is now being matched by contours of the new. has un-declined the custom built relevance of the company’s products and operations in the Indian context. masculine. elderly and not modern brand. the company was a fairly strong brand with good recall value. and technologies. It was seen as an experiential brand. The launch of a new website opened to doors to the world outside. moving with times. speedy. modern. where the public related to it thought very high of it but those away from the brand has only a fuzzy image of it.and often-even ahead of it. international. 48 . Various advertisements were aired to promote the brand. This made it necessary for Ashok Leyland to bring about a shift in perception and reinforce the fact that the company was fundamentally strong.

Road vs Rail share stabilizing Shift towards Hub and Spoke model 49 .MARKETING PROCESS: DELIVERING Sales Service Network Planning UNDERSTANDING Customer /Markets Marketing Initiatives CUSTOMER SUPPORTING Parts AMC Used Vehicles Transport Exchange MARKETING ENVIRONMENT: • • • • • • • • • Legislative changes related to commercial vehicles. Entry of multi-national players. Customers demanding more from manufacturers. Improving efficiency in railway operations. Service products becoming important buying decision. Higher growth rate in LCV segment. Directly competing with railways.

PLANS TO MEET THE GROWING NEEDS OF THE MARKET The company is constantly reviewing their strategies. FACTORS AFFECTING GROWTH: Infrastructure development Overall economic growth Restrictions on overloading Better operating economy of new trucks Restrictions on the age of vehicles Replacement demand due to changes in emission norms 50 . Defence Exports Industrial applications Spare parts Service products MARKETING STRATEGIES AND PLANS OF ASHOK LEYLAND: NEW PRODUCT LAUNCHES The company is expected to launch a slew of new products in the markets which is expected to propel the demand for its products. They are moving into higher value added jobs because it becomes very important to engage workmen fully and also their efficient utilization. INCREASING GLOBAL FOOTPRINT The company is now targeting new strategic markets with increased thrust on the Asian and African countries.BUSINESS INTEREST: • • • • • • Medium & Heavy commercial vehicles.

CURRENT PLAYERS IN THE COMMERCIAL VEHICLE INDUSTRY: • • • • • • • • • • • • Ashok Leyland Tata Motors Eicher Motors Swaraj Mazda Volvo Tatra Udyog Force-MAN Asia Motor Works Mercedes Benz Scania Hino Motors Daimler -Chrysler New entrants on the anvil.DISTRIBUTION NETWORK: PLANT MARKETING CUSTOMER GROUP REGIONAL SALES OFFICE DEALERSHIP CUSTOMER 51 .Mahindra Navistar.URAL ASHOK LEYLAND.

Guwahati 52 .177 Authorized service centres. Lucknow Jaipur Chandigarh Kolkata.ASHOK LEYLAND.2352 DISTRIBUTION CHANNEL – SALES: REGION South-1 South-2 South-3 West-1 West-2 Central North-1 North-2 North-3 East REGIONAL OFFICE Chennai Bangalore Secunderabad Mumbai Ahmedabad Nagpur Delhi Jaipur Chandigarh Kolkata AREA OFFICE Chennai.MARKETING NETWORK: • • • • • • • • Regional offices.10 Areas offices.145 Service bays.43 Dealer outlets. Bhubaneswar. Madurai. Eranakulam Bangalore. Hubli Secunderabad Mumbai Ahmedabad Nagpur. Jamshedpur. Indore Delhi.18 Regional sales offices-19 Parts warehouse-7 Main dealers.

a host of special application vehicles and diesel engines for industrial gensets and marine application. Buses. BUSES LYNX BS-II Cheetah (Front engine) Airport Tarmac Coach Cruiser Stag BS-II TRUCKS 4x2 Haulage models 4x2 and Multi-axle Tipper Multi Axle vehicles DEFENCE VEHICLES Short Chassis Bus Topchi field Artillery tractor Stallion 6x6 SPECIAL VEHICLES Hippo tractor Beaver tractor Beaver Haulage ENGINES Genset application Industrial application Marine application DG sets for exports 53 Stallion Mk III Tipper Rapid Intervention Vehicle Hippo Haulage Hippo Tipper Field artillery tractor Long Chassis Bus Stallion truck fire fighting Comet 4x4 Ecomet Tractor Viking BS-II Viking BS-III Vestibule Bus Viking CNG BS-III Double Decker 12 M Bus-BS II Viking AL Panther (Rear engine) Falcon (Front engine) .5 tons GVW to 49 tons GVW(Gross Vehicle Weight). Product profile can be broadly split into five categories viz. defence vehicles. Trucks. From 19 to 80 seaters in passenger transport. special Vehicles and Engines.PRODUCT PROFILE (Not Exhaustive): Ashok Leyland offers a comprehensive product range with trucks from 7.

7168.31 crores compared to Rs.71 NET PROFIT Rs.190 crores in 2008-09.71 crores in 2009-10 compared to Rs.8% • After a sluggish start in 2008.07 crores in the 2008-09. 54 .12 5981.7244.67 Ashok Leyland registered a sales turnover of Rs. the sales turnover improved by 21% touching Rs.17 Crore in 2006-07 showing an improvement of 7.441. • The net profit rose by 6.5981.Crore 7168.17 7729.07 7244.28 crore in 2006-07. • Similarly the net profit improved to 123% to touch 423.Crore 441.28 469.67 crores in 2009-10 against Rs.7729.12 crores during 2007-08 compared to Rs.VEHICLE SALES: SALES in Units YEAR 2006-07 2007-08 2008-09 2009-10 DOMESTIC EXPORTS 77069 6025 76022 7285 47619 6812 57947 5979 TOTAL SALES In Units 83094 83307 54431 63926 SALES TURNOVER & PROFIT: YEAR 2006-07 2007-08 2008-09 2009-10 • SALES TURNOVER Rs.4% in 2007-08 to touch Rs.469.31 190 423.

Standardization of design. Small work in progress in involved. More maintenance is required. Location and layout. Capital selection and investment. Minimum cost of production per unit Division of labour is made more efficient. machine. Globalization in industry. Short range strategies PRODUCTION SYSTEM: Ashok Leyland employs a continuous production system. 55 . Characteristics • • • • • Standard products are manufactured. Economy of size and variety. methods. making use of special purpose machines and produces standardized items in large quantities. money. Production is an organized process of manufacturing/producing goods and services through the use of input resources of men. An aggressive marketing strategy and risk taking ability. Goodwill inside and outside the organization. Flexible strategy of production. PRODUCTION MANAGEMENT STRATEGIES: Long range strategies • • • • • • • • • • • Effective management of technology. materials.d) PRODUCTION DEPARTMENT OF ASHOK LEYLAND LTD. Product selection and technology. Innovation in product management and process technology.

MANUFACTURING DGM -MFG DGM -CHASSIS DGM –MFG SERVICE AGM-ENGINES AGM-CHASSIS AGMMECHANICAL DIV -MGR DIV -MGR DIV –MGR MECHATRONIC S SENIOR -MGR SENIOR -MGR DIV –MGR MECHANICAL DIV –MGR ELECTRICAL SENIOR -MGR EXECUTIVES EXECUTIVES SENIOR -MGR SENIOR -MGR EXECUTIVES ASSOCIATES & DAILY RATED WORKERS ASSOCIATES & DAILY RATED WORKERS ASSOCIATES & DAILY RATED WORKERS EXECUTIVES EXECUTIVES ASSOCIATES & DAILY RATED WORKERS ASSOCIATES & DAILY RATED WORKERS 56 .DEPARTMENTAL STRUCTURE: EXECUTIVE DIRECTOR .MANUFACTURING PLANT DIRECTOR GENERAL MANAGER .

Shock absorber brackets and Torque checking PASSING STAGE: Checking and tilting 57 . FRAME ASSEMBLY: STAGE 1: Mounting of side members and cross members STAGE 2: Mounting of Front Spring-rear. ENGINE ASSEMBLY: • • • • • The engine case arrives at the first section and it is fitted with cam shaft and flywheel. Lesser work in progress. Front tie channel mounting STAGE 5: Fitment of FES rear brackets. oil coolers are attached. Rear spring-rear. STAGE 3: Fitting of Engine mounting brackets and FES mounting brackets STAGE 4: Side members fastening to torque limit. Side Members reaming. Characteristics • • • Mechanized material handling. Special purpose machines are used. Belt and gears for the running came is attached in the next section. The pistons are attached one by one to the crankshaft. Later fuel filters. Steering box bracket. Rear spring-front. Rear spring-middle. Front Spring-rear.PLANT LAYOUT: Product layout is employed in chassis assembly and engine assembly where in the facilities are arranged in a line as per the process sequence of the component manufactured. Finally the engine timing is set and sent for mounting on the body of a truck or a bus.

Both these sections have a conveyor belt on which each process is carried on. Stage 12: ACE link assembly Stage 13: Exhaust piping. Stage 18: Bumper.STAGES OF CHASSIS ASSEMBLY: Stage 1: Lay down regular Stage 2: Fixing of I & U bolt. Stage 15: Tyre mounting. Stage 19: Steering. Stage 14: Radiator. Stage 16: Lubrication. Stage 7: Air tank. 58 . For every 13 minutes a truck rolls out from the factory and 135 chassis are assembled per day as per agreement. Stage 17: Front end structure (FES) Cab mounting. Stage 3: Brake chamber. Stage 4: Steering gear. Stage 11: Propeller shaft. Stage 5: Silencer. The belt keeps on moving and the operator has to complete his designated job or else its nothing but an error. Now the cockpit of the truck is mounted on the body of the truck correctly and then it is sent for a drive or to the storage area. Stage 6: Fuel / water separator. Stage 9: Engine mounting. Stage 8: Fuel tank. Stage 10: Air/fuel piping.

Road test PRODUCTION PERFORMANCE: YEAR 2006-07 2007-08 2008-09 2009-10 PRODUCTION In Units 83558 84006 54049 64673 PLANT ENGINEERING: 59 . Air leakage test 8. Acceleration test 3.PDI (PRE DELIVERY INSPECTION): Testing of vehicle on real road conditions The following are the various tests done to test the vehicle: 1. Vibration test 4. Power steering hose routing and clamping 10. Oil level and water level checking 6. Torque tightening 5. Grease level checking 9. Speed test 2. Electrical components checking 7.

. fork lift charging and its repairing. replacement of bulbs throughout plant to arrest building deterioration. but for which advanced provision has been made in the form of spares. It includes machine lubrication. PREDICTIVE MAINTENANCE: Predictive maintenance is done on assumption by experience before the occurring or by any symptoms of occurring. material . The following are the various types of maintenance: Predictive maintenance Preventive maintenance Breakdown maintenance Routine maintenance     1. DIVISIONS: 60 .Plant engineering is responsible for proper functioning of the plant by carrying out maintenance operations such as electrical and electronics equipments maintenance. BREAKDOWN MAINTENANCE: Breakdown maintenance is work which is carried out after a failure. ROUTINE MAINTENANCE: Routine maintenance is done on even time or on routine basis. It is also responsible for maintenance works carried out in the organisation. labour and equipment 4. PREVENTIVE MAINTENANCE: Preventive maintenance is work directed to the prevention of failure of a facility 3. 2. repairing of pneumatic circuits etc.

Desirable DURATION 6 months 9 months Once in a year 4. It is also known as time based maintenance.Plant engineering is divided into 4 divisions to carry out its functions.Vital E. CORPORATE SOCIAL RESPONSIBILITY 61 .Essential D.Vital E . Here VED stands for V . The following are divisions of plant engineering:  Electrical  Mechanical  GWE(General Works Engineering)  Civil PERIOD OF MAINTENANCE: Period of maintenance is done on the basis of VED analysis.Essential D – Desirable ANALYSIS V.

engaging the families of the employees.782 units per day. education and environment. design of heating elements and an energy efficient lighting system has all led to energy savings of 30. health. Ashok Leyland encourages employee involvement. furnace-loading pattern. experienced and credible resources in all its CSR activities. and the society. The Ennore unit was recently identified as one of the model energy. all the vehicle manufacturing units of Ashok Leyland were ISO 14001 certified with Environmental Management System.Ashok Leyland defines CSR as: "Our commitment to improving the quality of life of our employees. CSR initiatives in Ashok Leyland are aimed at impacting positively. the driver and the local communities around our units. Systematic management of all energy resources from the 1980’s through better house keeping and awareness has made this possible. • The seating layout reckons the requirements of physically challenged children. all efforts are focused upon livelihood enhancement. The 1980’s also saw Energy audit being introduced. making a difference and sustaining them. their families.efficient units by a CII-TNEB organized Energy Conservation (ENCON) mission. The bus is equipped with a hydraulic lift for the convenience of wheel chair –bound children. Improvement in machine tools. 62 . 2) Green Mission • • In 2002. corporation primary schools and physically/ mentally challenged children in Chennai. and involving local." With CSR as an integral part of Ashok Leyland’s activities. CSR ACTIVITIES: 1) Fun Bus • Fun Bus is a gift from Ashok Leyland exclusively for free users round the year by children of orphanages. all social initiatives are structured and focused to enhance the commitment of employees and stake –holders.

(an associate of Bill and Melinda Gates Foundation) in Krishnagiri.1. Ennore has received ISO 14001 certification for Environmental management Systems. Ashok Leyland was one of the first organizations to associate itself by becoming an intervention centre. an opinion survey conducted in the neighbourhood reveals that both industries and the public are happy to have Ashok Leyland as their neighbor. About 55.50. secondary and tertiary treatment operations.TTK). practicing the 3Rs of Reduce.000 liters of effluents flow into the plant everyday. 6) Driver Training Centre 63 . Recently. • Outside the factory camps. Kingsley Community Centre. the department of International Development. 2. are conducted through our volunteers in cooperation with AIDS prevention and control project. RIDS (an NGO) in Hosur. 4) Greening • The Ennore unit is known for its lush green cover. exhibitions etc.• For Ennore. 5) Aids Awareness • In the mid-90’s. On an average.41 hectares is covered by greenery creating an oasis in the arid zone of Ennore. Almost 10% of the total ground area 53.5 million per annum. Building on the eco friendly measure over the years. Cases which require support service are sent to ‘Seva Kendra’ in Bangalore (an NGO backed by rotary. They also provide counseling services at our Medical center. film shows. Reuse and Recycle has surely paid off. cycle rallies.000 liters of recycled water is pumped into garden saving Rs. formed the Truckers Interim Coordination Unit (TICU) for a focused programme among truck drivers. and health education programs like lectures. British High Commission. 3) Effluent Treatment • The plant can do primary. Five kilograms of solid hazardous waste is stored as per Pollution Control Board standards and the rest water portion is treated and used for organic farming.

From the very beginning. Chennai. personality development and health risks like smoking. the Dharam Hinduja Matriculation and Higher Secondary School. Ambulances are donated for worthy causes. employees contributed another 15 lakhs separately. SWOT ANALYSIS 64 . ultimately leading to the construction of secured landfills within the campus. 7) Community Welfare • Started in 1994. At Ashok Leyland various actions have been initiated over the years towards safe storage of sludge. 5. • Substantial relief material was distributed in the worst affected districts of Tamilnadu through NGOs. • Ashok Leyland has reached out to 90. 8) Sludge disposal • A natural by-product of the painting process. besides functional subjects. health education including yoga and AIDS awareness along with the education on the vehicle and traffic rules cum sessions on physical fitness. Since paint had a high calorific value. A training centre is also located at Alwar.000 truckers during its training programme in Tamil Nadu. sludge disposal has always been a problem faced by the auto industry. its use as a fuel was explored. • • The company contributed one crore rupees in aid of relief operations for the Tsunami victims. In addition. The drivers also attend awareness sessions on Sexually Transmitted Diseases. is managed by a Board of Trustees consisting of senior executives and workmen of the company. The Company is also working with the Confederation of Indian Industry (CII) for long-term solutions like fishing equipment and community centers to the fishermen communities.• Ashok Leyland’s Namakkal Driver Training Centre near Salem in Tamil Nadu was started in 1995 “ to ready a driver for life on he road and off the road”. Free medical camps are held in neighbourhood. Employees participate in large numbers at periodic blood donation camps held at the Units. the curriculum had included. The effort yielded positive results. Thiruvottiyur.

Company provides better credit facility to dealers. New players entering the market. High Market Share 4. High price Sales representatives are less OPPORTUNITIES 1. 2. High competition Promotional programmes of other brands Complicated national market 4. Good Training System. 2. Good Organizational Climate. 3. 2.STRENGTHS 1. Skilled Employees 5. Demand for heavy vehicle have steeped up all over the globe. Standard Quality Product WEAKNESSES 1. THREATS 1. 2. 65 . 3.

Previously. It came into existence when the management realized the need for a media friendly department to communicate with its external public.6. Also there was a need to communicate extensively to its internal public. The Corporate Communication department in Ashok Leyland started in 1997. COMMUNICATION SYSTEM AT ASHOK LEYLAND LTD. the department has come a long way. a part of marketing communications. Publics EMPLOYEES MEDIA AL CUSTOMERS SUPPLIERS CUTcustomersmmmmmmmmmm INDUSTRY MONITORING BODIES SHARE HOLDERS FINANCIAL INSTITUTIONS sfsdfsfs ASSOCIATE PARTNERS TRADE ORGANISZATIONS 66 .

Here the top management addresses the employees and makes a presentation which discusses the future plan.  Soap box It is a raised platform on which employees can give in suggestions and feed back 67 .INTERNAL COMMUNICATION: Employees form a vital part of any organization. Continuous communication with the employees will facilitate the organization to keep them updated on the current happenings. A copy of the reply by the functional head is sent to the MD.  Circulars.  Managing director holds a meeting with the executives of the company every year in a 5-Star Hotel  Communication Meet The communication meet is one of those events where the top management communicates directly with various departments of the company. Any employee can ask any question related to the company and its functions.  E-mail  Telephone. Downward Communication:  MD’s Letter This letter is addressed to the internal public of the company by the Managing Director. This letter is drafted by the Corporate Communications Department with inputs from the MD and is circulated only internally once in three months. This will help the organization to increase efficiency and productivity in the long run. thus it is required to establish and maintain mutual understanding with them. The MD then goes through them and either replies to it or forwards it to a functional head.  Ashley News Upward Communication:  AL PORTAL INTRANET-MD’s Portal This link allows employees to post queries to the Managing Director.

groups. Communication media  Website  Annual Report  Customer Journal-Moving Force  Operator’s Meet  Vendors & Suppliers Meet  Dealer’s Meet  Exhibitions  Media Relations  Shareholder Relations 68 . new technologies etc. The goals of external communication are to facilitate co-operation with groups such as suppliers. or individuals outside its formal structure. investors and shareholders. Speedy. The teams are divided into Workmen. Any employee having company’s e-mail id can access to this link through AL-Portal. Innovative and Value Creator among the employees. open and Executive league. Ethical.  Counselling Informal communication:  Oral communication  Improve An annual company wide contest for employee team projects which gives them a chance to think. and discuss over it.. innovate and improve. EXTERNAL COMMUNICATION: External communication is the exchange of information and messages between an organization and other organizations. These teams compete under three different streams based based on the theme of their project.such as cost saving techniques. and to present a favorable image of an organization and its products or services to potential and actual customers and to society at large.  AL-quiz The main aim of the quiz is to inculcate the five values of Ashok Leyland ie) International.

What are the sources for recruitment and selection? About 73% of the manager say that they prefer both internal as well as external source for recruitment and selection where as only 9% go for internal source and 18% go for external sources. Correlation value = 0.826 2. When do you prefer to go for manpower planning? 69 . The Annual General Body Meeting Data Analysis 1.

Around 50% of the managers go for Quarterly manpower planning and 20 % do not follow any pattern they don‟t have any fixed time where as 20% go for yearly.05 Score Secured 4 3 4 3 4 3 4 3 4 3 3 3 Score Expected 4 3 3 4 3 3 3 4 3 3 3 2 3. Correlation value = 0. What are the sources for external recruitment are preferred? 70 .

What form of interview did you prefer? 71 .At Ashok Leyland 59% of manager go for campus interviews.83 Score Secured 4 3 3 4 4 4 4 4 3 3 4 4 3 3 3 4 4 4 4 4 3 3 4 4 Score Expected 4. Correlation value = 0. 37% from the lateral application that are received and only 7% go for any placement agencies.

707 Score Secured 4 4 4 4 4 3 3 3 3 3 4 3 4 4 4 4 4 3 3 3 3 4 4 4 Score expected 5. How do you rate the HR practices of the company? 72 .Most of the manager Prefer Personal interviews. 30% prefer to take telephonic interviews where as only 20% go for video conferencing and rest 10% adopt some other means of interviews Correlation value = 0.

50% of the managers feel that HR department is good where and 30%say that‟s its very good where as 20% says its average and only 10% manager feel it’s bad. 6. . 73 . How do you rate the recruitment procedure? 50% of the managers feel that the recruitment procedure is average 20%say that‟s its long further 20% says its long and and only 10% manager feel very long.

32% of the manager feel indirect method is better and 3% feel third party is better.7.683 Score Secured Score Expected 4 4 4 4 4 4 4 4 4 3 74 . Which method do you mostly prefer for recruitment and selection preferred way of recruitment? At ashok leyland 65% of the managers prefer the direct method of recruitment. Correlation value= 0.

63 Score Secured Score Expected 4 4 4 4 4 3 3 4 4 3 4 4 4 4 4 4 4 4 4 3 75 . What are the sources for internal sourcing among the following? At ashok leyland 50% of the employees feel for internal sourcing present employees is the best source.30% say present temporary employees and 20% say retrenched/retired employees.3 3 3 4 4 4 4 3 3 3 4 4 3 4 8. Correlation value= 0.

and a further 5% say no.Are you satisfied with the rounds of interviews conducted? At ashok leyland 80% of the managers are satisfied with the rounds of interviews conducted.4 3 4 3 9. 76 .15% prefer not to say.

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