Sei sulla pagina 1di 109

KRISTU JAYANTI COLLEGE

AN ORGANIZATION STUDY : MRF

ARUN JOSEPH GEORGE

AN ORGANIZATION STUDY : MRF


DECLARATION

I, Arun Joseph George do hereby declare that this report titled AN ORGANIZATIONAL STUDY AT MRF TYRES Ltd. conducted at MRF Tyres Ltd. Kottayam, in partial fulfillment of the requirement for the award of the degree of MBA has done by me under the guidance of Dr. Pious Thomas, MBA Co-ordinator, Kristu Jayanti College, Bangalore. I assure that this has not been submitted by me fully or partially for the award of any other degree, diploma or other recognition.

Date: GEORGE Place: Bangalore

ARUN JOSEPH

KRISTU JAYANTI COLLEGE

Page 2

AN ORGANIZATION STUDY : MRF

ACKNOWLEDGEMENT

First and foremost my sincere thanks to my Principal Rev. Father Josekutty P.D for his support and encouragement. Next in line I thank Dr. Pious Thomas MBA co-ordinator for his constant guidance. I thank Ms. Pramela .P. Skariah, Welfare Officer, MRF Tyres Ltd. for providing me with the relevant information and supporting me during my field study period. I thank all the teachers of the MBA department and my family for their guidance and support.

ARUN JOSEPH GEORGE

CONTENTS
1) Executive Summary

PAGE NO 6

KRISTU JAYANTI COLLEGE

Page 3

AN ORGANIZATION STUDY : MRF


2) Introduction 3) Study Details

7 8

i) Objectives of the Study ii) Scope of the Study iii) Limitations of the Study
4) Company Profile

i) Vision, Mission and Values ii) Management iii) Evolution of MRF iv) Policies of MRF v) Current Position
5) Industry Profile 6) Product Profile 7) Organizational Design

22 29 35

i) Organization Structure
ii) Organizational Culture 8) Functional Areas

43

KRISTU JAYANTI COLLEGE

Page 4

AN ORGANIZATION STUDY : MRF


9) SWOT Analysis 10)

90

Findings and Suggestions 94

11) 12)

Conclusion Bibliography

97 99 PAGE NO

LIST OF TABLES AND CHARTS 1) Tables a) Board of Directors b) Managers at Kottayam Plant
c) Financial Summary d) MRF Sales Network

12 42 51 88

2) Charts
a) Market Share of Indian Tyre Industry b) Organization Structure of Corporate Office c) Organization Structure of Kottayam Plant d) Structure of Production Department

25 36 39 45

e) Structure of Finance Department KRISTU JAYANTI COLLEGE

50
Page 5

AN ORGANIZATION STUDY : MRF


f) Structure of HR Department g) Structure of Quality Assurance Department h) Structure of Engineering Department i) Structure of Security Department j) Structure of Marketing Department

58 69 74 82 86

EXECUTIVE SUMMARY The objective of this study entitled An Organizational Study of MRF LTD., Kottayam is to highlight the real life situations under the domain of business and organizational world of MRF LTD., Kottayam. The report covers the overall organizational structure, departments, functions, procedures and functions, procedures and policies of the company. The functional areas, products, services of the company have been well studied and documented in the report. The study also includes the SWOT (Strength, Weakness, Opportunity and Threats) analysis of the company in the present situation which is an output of the 6week observational study at the company. IT is intended to analyze comprehensively and understand thoroughly the various departments, services, functions

KRISTU JAYANTI COLLEGE

Page 6

AN ORGANIZATION STUDY : MRF


and company`s approach towards using technology, Corporate Social Responsibility and work environment. In the present business world, manufacturing industry has grown significantly since last few decades and is also faced by cutthroat competition in every area. MRF, established in 1946, is one of the largest tyre manufacturing companies in the world. During the study information was gathered relating to Organizational structure, various departments, and their functions, products, quality policies, procedures and SWOT analysis of the company. The study is based on the relevant data and materials obtained from the organization. Also direct interviews were held with high authorities and staff members to get more accurate and up to date information. Each activity of the company was studied carefully with the available data and material. Nowadays the competition in tyre industry has increased. Foreign and domestic players have come into picture. The management of MRF is concerned with keeping in touch with the customers and non-customers expectations and provides better quality of services.

Four main attributes like Quality, Cost effectiveness, responsiveness and being customer centric/sensitiveness are the major attributes one considers to identify ones attitude towards the company. INTRODUCTION MRF Tyres was established in the year 1946 by a young entrepreneur, K. M. Mammen Mappillai, opened a small toy balloon manufacturing unit in a shed at Thiruvottiyur, Madras (now Chennai). On its start, the company had no machines in the unit but it just had an employee bubbling with great enthusiasm, innovative ideas and great vision, the owner himself. Any product that could be produced out of rubber without any machinery was produced. From toy balloons to latex cast squeaky toys, industrial gloves, contraceptives, the list is very long. The company name is an acronym for MADRAS RUBBER FACTORY. Since 1946 MRF has emerged as the largest tyre manufacturer in India and 13th largest in the world with a turnover of Rs.5000 crores. It has a built capacity of six million tyres from six production facilities in India.
KRISTU JAYANTI COLLEGE Page 7

AN ORGANIZATION STUDY : MRF


MRF Ltd. was incorporated towards the end of 1960 and was converted into a public limited company in 1961. The company caters to all the vehicular segments from commercial vehicles and passenger cars to two-three wheelers and tractors and tractors. It has its strong presence in both the radial and cross ply segments. MRF TYRES, India's No. 1 tyre manufacturing company manufactures an extensive range of superior quality tyres in six production facilities in India. It boasts of 68 sales centers and 2500 distributors and exports its products to over 75 countries worldwide - a standing testimony to MRF's outstanding leadership.

The main quality objective of the company is to attain global standards through the continuous improvement in the quality of products and services and also to maintain market leadership. The main strategy of this company in today`s competitive world is to: Cut Cost and Win the Battle

STUDY DETAILS OBJECTIVES OF THE STUDY

To identify the organizational culture and structure of MRF Ltd., Kottayam. To study the various departments and their functions. To study about the various products and services offered by the company. To study the day to day activities of MRF Ltd. To make a SWOT analysis of this organization to understand and suggest measures to overcome the weaknesses and threats within the scope of this study.

KRISTU JAYANTI COLLEGE

Page 8

AN ORGANIZATION STUDY : MRF

SCOPE OF THE STUDY

Useful for academic purpose and further reference. Provides information about the functioning of the tyre industry in India.

LIMITATIONS

Time was a limiting factor during the study. Limited number of employees who were selected for the survey of this study. Some core data could not be collected due to confidentiality policies of the company.

KRISTU JAYANTI COLLEGE

Page 9

AN ORGANIZATION STUDY : MRF

COMPANY PROFILE

COMPANY PROFILE Just one year before the attainment of independence by our country in the year 1946, a young entrepreneur Mr.K.M.Mammen Mappillai opened a small toy balloon manufacturing unit shed at Thiruvottiyur, Madras (now Chennai). Over the year it started manufacturing a variety of products.
KRISTU JAYANTI COLLEGE Page 10

AN ORGANIZATION STUDY : MRF


MRF Ltd. was incorporated towards the end of 1960 and was converted into a public limited company in 1961. Additional shares were offered to the public, in order to raise fund for manufacturing automotive tyres and tubes in collaboration with US based Mansfield Tyre and Rubber Co. Since then it has emerged as the largest tyre manufacturer in India and 13 th largest in the world with a turnover of Rs.5000 crores and also built capacity of six million tyres from six production facilities in India. With a profit margin of approximately 1.3% in the tyre manufacturing sector, MRF holds more than 20% of the market share. The company caters to all vehicular segments from commercial vehicles and passenger cars to 2-3 wheelers and tractors and has a strong presence in both radial and cross ply segments. It hosts 68 sales centers, 2500 distributors and exports to over 75 countries: A standing testimony of MRF`s outstanding leadership. MRF enjoys of manufacturing the largest range of tyres in India and it has the highest brand preference for superior quality, appearance and wears ability. It manufactures the largest range of tyres in the country and is the market leader with the largest market share in almost every segment of the tyre industry. MRF Ltd. is the first Indian company to export tyres to the US, the very birthplace of tyre technology. It is the first company in India to manufacture and market Nylon tyres passenger tyres commercially. The company was given the title of most ethical company by 'Business World' magazine after a survey conducted in 1999. VISION MRF TYRES Ltd. has a vision- a vision to be a significant player in the global tyre industry and a brand of choice providing customer delight and enhanced stakeholder value. And in order to make empower vision, they have strived to meet the needs of the customers through: To be most admired Tyre Brand Globally by 2010. Error- free service delivery Innovative products and services Cost efficiency
Page 11

KRISTU JAYANTI COLLEGE

AN ORGANIZATION STUDY : MRF


Loved by more customers Targeted by top talent Benchmarked by more business

MISSION MRF `s mission statement is as follows: We will meet global standards of the tyre industry that delights customers through customer service focus, empowered employees, innovative services & Cost efficiency.

VALUES

Customer: We bill be responsive to the needs of our customers. Learning: We will continuously improve our service innovatively & expeditiously. People: We will trust & respect our employees Community & Partners: We will be transparent & sensitive in our dealing with all stake holders.

MANAGEMENT The success or the failure of a company is by the performance of its management. Management plays a major role in decision making. The management of MRF id led by Mr.K.M.Mammen, son of Mr. Mammen Mappillai who started the company 62 years ago. BOARD OF DIRECTORS K.M. Mammen Arun Mammen K.M.Pillai
KRISTU JAYANTI COLLEGE

Chairman Managing Director Whole Time Director


Page 12

AN ORGANIZATION STUDY : MRF


Dr. K. C. Mammen C.G. Rangabashyam K.D. Prakh Ashok Jacob S. Nandhagopal V. Shridhar Vijay .R. Kiriloskar N. Kumar Ranjith. I. Jesudasen D.M. Choksi Director Director Director Director Director Director Director Director Director Secretary

MAJOR BRANDS

Superlug - Country`s largest selling Truck Tyre. Shakthi- Country`s largest selling Tractor Tyre. Zigma- Country`s largest selling Radial Car Tyre. Nylogrip- Country`s largest selling Two Wheeler Tyre. Legend- Country`s largest selling Conventional Car Tyre.

SISTER CONCERNS Malayala Manorama Manorama Vision MM Foam Philips Coffee Devon Machines Plantation COLT Computers
Page 13

KRISTU JAYANTI COLLEGE

AN ORGANIZATION STUDY : MRF

INDIAN COMPETITORS TO MRF

Ceat Apollo Good Year J K Tyres Modi Bridgestone

MAJOR OEM (Original Equipment Manufacturers) CUSTOMERS OF MRF (Tyres & Tubes): Ford India Ltd. General Motors India Ltd Maruti, Hindustan Motors Hyundai, TATA Motors Asok Leyland Honda Siel Hero Honda Bajaj LML Ltd. Honda Motors & Scooters India Ltd.

KRISTU JAYANTI COLLEGE

Page 14

AN ORGANIZATION STUDY : MRF


Mahindra & Mahindra Eicher Motors New Holland Volvo

PRODUCTION UNITS Thiruvottiyur, Tamil Nadu Arakonam, Tamil Nadu Kottayam, Kerala Medak, Andhra Pradesh Pondicherry Ponda, Goa

EVOLUTION OF MRF 1949 MRF established its first office at 334, Thambu Chetty Street, Chennai.

1952 The first machine (a rubber mill) was installed at the factory and MRF ventured into manufacture of tread rubber.

KRISTU JAYANTI COLLEGE

Page 15

AN ORGANIZATION STUDY : MRF

1955 MRF started competing with foreign companies operating in India by becoming the only Indian company to manufacture superior, extruded, non blooming and cushion backed tread rubber.

1956 MRF became the market leader in tread rubber with 50% share in the Indian market. MRF`s hold on the market was so strong that the foreign companies started withdrawing from the tread rubber business in India.

1961 MRF became a public limited company.MRF entered into technical collaboration with Mansfield Tyre Company of USA and a pilot plant for tyre manufacture was established at Thiruvottiyur.

1963 Full fledged tyre plant and rubber research center was inaugurated by India`s first Prime Minister Pandit Jawaharlal Nehru.

With the manufacture of tyres, MRF started marching ahead, capitalizing on its strengths, overcoming its weaknesses, exploring all opportunities and converting every threat into an opportunity for growth.

KRISTU JAYANTI COLLEGE

Page 16

AN ORGANIZATION STUDY : MRF


1964 MRF started an overseas office in Beirut (Lebanon)to develop export market.

1967 MRF becomes the first Indian company to export tyres to USA which is the birth place of tyre technology.

1970 Kottayam plant became operational.

1971 Goa plant was built in a record time of 18 months.

1972 With the setting up of Arakonam plant, MRF became the only tyre company in India with four manufacturing facilities.

1973 MRF launched India`s first NYLON car tyre.

1978

KRISTU JAYANTI COLLEGE

Page 17

AN ORGANIZATION STUDY : MRF


MRF launched Super Lug 78 which later became the largest selling truck tyre in India.

1979 MRF`s turnover crossed Rs.100 crores

1980 MRF entered into technical collaboration with BF Goodrich Tyre Company of USA. With this began a significant exercise in quality improvement and new product development.

1984 MRF becomes the first tyre to be selected for fitment on Maruti-800

1985 MRF Nylongrip tyres for two wheelers were launched.

1986 MRF won 6 awards for quality improvement from BF Goodrich, pitted against 20 tyre companies worldwide. It also won the National Institution for Quality Assurance Award in the same year.

KRISTU JAYANTI COLLEGE

Page 18

AN ORGANIZATION STUDY : MRF


1987 MRF became the No.1 tyre company in India by crossing the Rs.300 crores turnover.

1988 MRF Pace Foundation was setup with Dennis Lillie as its director to nurture and develop

the talents of budding cricketers. It concentrated on developing pace bowlers and within a few years it contributed pace bowlers to the Indian Cricket Team.

1989 MRF collaborated with the world`s largest toy maker, Hasbro international and launched Funskool India, the most modern toy project in Asia. MRF collaborated with Vapocure of Australia to produce poly-urethane paint formulations. MRF Zigma radials were launched along with MRF World Series cricket which was one of the country`s most spectacular cricketing and marketing events.

1990 The fifth unit of MRF for manufacturing tyres and tubes was opened at Medak in Andhra Pradesh. MRF Tyre Drome became India`s first tyre company owned Wheel Care Complex. MRF collaborated with Pirelli to manufacture conveyor belts called Muscle Flex. The same year MRF brought the World Cup Boxing Championship to India. In this year the company bagged the Vishveshvariah Award for the best business house in South India. It also bagged the Howard Business school Award for best corporate performance.

KRISTU JAYANTI COLLEGE

Page 19

AN ORGANIZATION STUDY : MRF

1991 MRF moved to its own corporate office which soon became a landmark in Chennai.

1993 MRF became the first Indian tyre company to cross a turnover of Rs.1000 crores. With this the company found a place among the ten most respected corporate groups in India. It was a proud moment for the company when its Founder and Chairman Mr.K.M.Mammen Mappillai was honored with the PADMASHREE award for his contribution to the industry, the only industrialist from South India to be accorded this honor.

1996 In the Golden Jubilee year, the company crossed a turnover of Rs.2000 crores and also setup a new plant at Pondicherry for manufacture of radial tyres.

1999 MRF was declared the most ethical company by the Business World in its survey.

2000 MRF launched the smile campaign on Indian roads.

KRISTU JAYANTI COLLEGE

Page 20

AN ORGANIZATION STUDY : MRF

2002 MRF won the No.1 award for customer satisfaction by J.D.Power, Asia Pacific.

2003 For the second year in succession, MRF won the No.1 award for customer satisfaction by J.D.Power, Asia Pacific.

2004 For the third year in succession, MRF won the No.1 award for customer satisfaction by J.D.Power, Asia Pacific. The company crossed a turnover of Rs.3000 crores.

2006 For the fourth time, MRF won the No.1 award for customer satisfaction by J.D.Power, Asia Pacific.

POLICIES OF MRF QUALITY POLICY OF MRF

KRISTU JAYANTI COLLEGE

Page 21

AN ORGANIZATION STUDY : MRF


This policy is to maintain market leadership through continuous quality improvement. To achieve this goal, all the MRF plants and the corporate office particular attention to the following: Product/process improvements by field/plant performance monitoring and prompt service to the customer. Up gradation of machinery to meet the increasing needs of the customer. Continuous training of all employees in order to acquire necessary skills and knowledge. At the Plant level the respective General Managers are assigned the responsibility of carrying out quality systems by collaborating with corporate functions.

SAFETY POLICY OF MRF MRF has a well defined safety and health policy which is as follows: It is the policy of our company that the SAFETY and HEALTH of our employees shall be our FIRST priority. It is the responsibility of everyone in the organization, regardless of the position he occupies to ensure that everyone in the factory returns home to their beloved ones without any injury today and every day. We shall observe this policy not only in letter but also in spirit and offer ACCIDENT FREE SAFE PRODUCTION for the benefit of one and all.

ENVIRONMENTAL POLICY OF MRF This policy of MRF is to ensure that products are manufactured in an environment friendly and safe manner. To achieve this goal, all the MRF plants and the corporate office particular attention to the following:

Minimize the impact of manufacturing activities on the environment-air, water, soil.


Page 22

KRISTU JAYANTI COLLEGE

AN ORGANIZATION STUDY : MRF


Comply with all applicable regulatory requirements. Develop environmental performance evaluation procedures for continuous monitoring. Optimize the consumption of resources (water, energy and raw materials) by minimizing wastage, recovering and recycling where ever possible. Up gradation of machinery and pollution control equipment when required. Train all employees to perform their activities in an environmentally responsible and safe manner. TRAINING POLICY OF MRF This policy is to provide and develop knowledge, skills and behavior of the employees to continuously improve performance. To achieve this goal the following are paid proper attention: Identify and document the training needs of each employee through competence evaluation each year. Design and publish training calendar and schedule. Providing training periodically based on identified needs and as per the documented schedule. Monitor and evaluate the training process and outcomes to asses and to decide the next training cycle requirements.

KRISTU JAYANTI COLLEGE

Page 23

AN ORGANIZATION STUDY : MRF

CURRENT POSITION

Highlights of First Quarter (Dec 2007): FY 07-08 Turnover (Rs. in crores) Net Profit (Rs. in crores) EPS (in Rs.) Operating Profit (Rs. in crores) : 1155.57 : 51.75 : 122.03 : 127.92

Highlights of Second Quarter (Mar 2008): FY 07-08

Turnover (Rs. in crores) Net Profit (Rs. in crores) EPS (in Rs.) Operating Profit (Rs. in crores)

: 1214.83 : 65.62 : 154.72 : 154.39

KRISTU JAYANTI COLLEGE

Page 24

AN ORGANIZATION STUDY : MRF

INDUSTRY PROFILE

KRISTU JAYANTI COLLEGE

Page 25

AN ORGANIZATION STUDY : MRF

TYRE INDUSTRY Robert W Thompson a Scottish Engineer invented the pneumatic tyre in 1845. In 1970 the first solid rubber tyre appeared in England. Hon Dunlop, a Scottish veterinary surgeon improved on Thompson`s invention in 1988. Till 1960`s foreign companies dominated the tyre industry. During late 60`s and early 70`s Indian Industrial Entrepreneurs entered the market with foreign collaborations. As automobile sector began to take its roots in the country, the tyre industry witnessed the entry of many players and with the waves of liberalization sweeping the land in 1922; the industry saw the same as a part of joint ventures.

GLOBAL MARKET MAJORS Bridgestone Michelin Good Year Continental Sumitomo Pirelli Yokohama

KRISTU JAYANTI COLLEGE

Page 26

AN ORGANIZATION STUDY : MRF


Kumho Cooper Toyo Oust Hankook MRF Shangai Chinghi Gajab Tungsad

The tyre industry in India came into existence with an established trading outfit by US based Fire Stone Tyre and Rubber Co. in 1922 followed by Dunlop Rubber Co. of UK in 1926. Initially they were trading companies but subsequently diversified into manufacturing sector with plants in West Bengal by Dunlop and in Mumbai by Fire Stone in the year 1932. This Rs.19000 crore industry fully depends on agricultural and industrial performance of the economy, the transportation needs and the production of vehicles in the country. Indian tyre industry is one of the largest in the world with more than 100 million motor vehicles on the Indian roads.

SALIENT FEATURES OF INDIAN TYRE INDUSTRY Adaptability and absorption Innovativeness Exports

KRISTU JAYANTI COLLEGE

Page 27

AN ORGANIZATION STUDY : MRF


Technology progression Wide product range for diverse usage

INDIAN MARKET MAJORS

MRF Ceat Apollo Good Year J K Tyres Modi Bridgestone

The Indian Tyre Industry produced 736 lakh units of tyres (11 lakh tonnes) garnering Rs. 19,000 crores in FY 07-08. MRF Ltd. was the market leader (22% market share) followed closely by Apollo Tyres Ltd. (21%). The other major players were JK Tyre & Industries Ltd (18%) and CeatLtd.(13%).

KRISTU JAYANTI COLLEGE

Page 28

AN ORGANIZATION STUDY : MRF

Market of Tyre can be classified into 3 categories

Original Equipment Manufacturer (OEM) Replacement Market Export Market


Page 29

KRISTU JAYANTI COLLEGE

AN ORGANIZATION STUDY : MRF

Globally, the OEM segment constitutes only 30 per cent of the tyre market, exports 10 per cent and the balance from the replacement market. In India the major demand comes from the
replacement market accounting for around 48.70 per cent. It is followed by 42.80 per cent from the Original Equipment manufacturers (OEM) and 8.50 per cent from the exports. Retreading is looming over the tyre industry as a colossal threat. Simply put,

rethreading is replacing the worn-out tread of the old tyre with a new one. The popularity of rethreading stems from the fact that it costs only 20 per cent of a new tyre but increases its life by 70 per cent to 80 per cent. Most of the transporters in India retread their tyres twice during its lifetime, while a few fleet owners even retread thrice. Though retreading has penetrated 25 per cent of the tyre market, it has not made much of a dent in the rapidly growing two-wheeler and passenger car segments.

The Tyres produced in India are Cross Ply Radial

Cross ply tyres have been used in India for several years. The cross ply trestle pooly cords run across each other or diagonally to the outer surface of the tyre. Rayon and Nylon cords are used as the reinforcing medium. These tyres can rethread twice during their lifetime and hence preferred by the Indian transporters who normally overload their trucks. In India 90-95% tyre is sold of this type.

Radial tyre have their cord running radially from bead at 90* angles to their rim or along the outer surface of the tyre. The reinforcing mediums used in these tyres are polyester, nylon,

KRISTU JAYANTI COLLEGE

Page 30

AN ORGANIZATION STUDY : MRF


fiberglass and steel. Hence it provides for a longer life time and lower fuel consumption, with better consumption, better control over vehicle and road holding. Radial tyre usage has shown has shown significant increase in usage every year. In India almost all automobile segments have shifted to radial tyres and the usage of cross ply is restricted to trucks and buses only. The Indian tyre industry is mainly dominated by the organized sector and consists of four major players who together account for almost 85% of the industry`s turn over- MRF Ltd., Apollo Tyres Ltd., JK Tyre &Industries Ltd. and Ceat Ltd. Unlike the international tyre industry where passenger car radials dominate the market, in the Indian tyre industry commercial vehicle tyres take the lead and account for approximately 70% of the industry`s turnover. As a result, the growth of the entyre industry depends upon primary factors like agricultural growth, industrial production, growth in vehicle demand and secondary factors like infrastructure development, prevailing interest rates and financing options. The tyre industry is highly raw material intensive and a major consumer of rubber. With raw material costs accounting for 70% of the cost of production, any change in the price of rubber or the crude basket has a direct impact on the cost of production. The comparatively stable raw material prices in the first half of FY 2007-08, coupled with price rises undertaken by the industry in FY 2006-07, resulted in all major players reporting improved operating profit margins. This was after a four consecutive years of raw material cost push, both for natural rubber and crude oil linked raw material basket. The second half of FY 2007-08, saw an upward trend for all major raw material prices and the same is anticipated in the year ahead. As a result margins are once again under pressure, even while the demand-supply situation continues to be in favor of the industry. The industry, already bogged by over capacity, is facing a severe threat of dumping of cheap tyres by South Korea. Under the Bangkok agreement, signed between India and South Korea in 1976, import of tyres from the latter into India would attract a concessional duty of 33 per cent as against the normal tariff of 40 per cent. Two years ago, the industry estimated the growth in the passenger car radial demand at 20 per cent per annum. However, the auto recession has hit them
KRISTU JAYANTI COLLEGE Page 31

AN ORGANIZATION STUDY : MRF


badly. But South Korea made a killing by dumping cheap car radial tyres and walked away with 11 per cent of the tyre market. Another threat to the industry is the price of its raw materials, most of which are petroleum byproducts. Carbon, synthetic rubber and nylon tyre cord are offshoots of petrochemicals. Thus, the future of the industry will swing with the supply of crude oil. The biggest threat, however, is yet to fully materialize. It will be from global majors like Bridgestone and Michelin, which control 36 per cent of the global tyre market. These players have set up their bases in Southeast Asia and the slump of the markets in this region, coupled with the vast growth potential of the Indian market, is beckoning them towards India. Bridgestone has tied up with ACC for a 100 per cent radial tyre unit and Michelin is also marketing its products through retail outlets. The industry is driven more by volumes than by margins and each of the big five in the global tyre industry Continental, Michelin, Goodyear, Pirelli and Bridgestone generate an annual tyre production equivalent to the total demand of the Indian market. These MNCs have deep pockets and can easily withstand losses for 2-3 years. Their financial muscles also permit them to invest in R&D, which is beyond the reach of the average Indian tyre manufacturer.

KRISTU JAYANTI COLLEGE

Page 32

AN ORGANIZATION STUDY : MRF

PRODUCT PROFILE

COMPANY`S PRODUCTS

Automotive Tyres

Truck tyres tube type and Tube less type


Page 33

KRISTU JAYANTI COLLEGE

AN ORGANIZATION STUDY : MRF


Light Truck Tyres Special Tyres for Defense Tyres for industrial application Agricultural Tractor and Tilling tyres Off the road tyres- solid tyres and earth mover tyres Passenger tyres- bias ply and radial Two/Three wheeler tyres Specialized tyres for motor rallies

Major Tyre Brands of MRF


Superlug - Country`s largest selling Truck Tyre. Shakthi- Country`s largest selling Tractor Tyre. Zigma- Country`s largest selling Radial Car Tyre. Nylogrip- Country`s largest selling Two Wheeler Tyre.

Legend- Country`s largest selling Conventional Car Tyre

Paint and Specialty Coating MRF manufactured speciality coating for a wide range of application. The revolutionary 100% polyurethane finishes are available in formulation for application to metal, wood, plastic, paper, vinyl, textile, ceramics and glass. These coatings have been developed for color and gloss retention, strong adhesion and durability.

Major MRF Paints and Speciality Coatings


KRISTU JAYANTI COLLEGE Page 34

AN ORGANIZATION STUDY : MRF

MRF Metal Coat MRF Wood Coat MRF Glass Coat MRF Vapocure MRF Brass Coat MRF Auto Coat

Funskool Toys Funskool India Limited is a joint venture between MRF and Hasbro Inc., USA, the world`s largest toy company. Since late 1991-1992 Funskool` s Goa plant has been making its own moulds for a number of its products, the most popular of which are Pipsqueaks, a range of low priced baby toys. These soft colorful animal toys have their sound built into their internal construction, doing away with the traditional whistle that breaks easily.

Funskool` s range of board games has catalyzed the phenomenal growth of this segment in the Indian toy market. Games like Scotland Yard, Battleship, The Game of Life, The Memory Game, and the recently launched Go to the Head of the Class have made Funskool the undisputed market leader in the board games segment. The G. I. Joe series of army action figures and vehicles, which has taken the children`s world by storm has gone up to a collection of 30 figures and 20 vehicles. Two new toys, the racing jeep and the Street Hawk motorcycle are based on MRF ads. The latest to the Funskool range of toys are the WWF characters.

KRISTU JAYANTI COLLEGE

Page 35

AN ORGANIZATION STUDY : MRF

MRF Muscleflex Conveyor Belt

MRF`s collaboration with PIRELLI came at a time when Indian Conveyor belting industry was seeking technological momentum.MRF Muscleflex offers several advantages to buyers of belting in India.

The MRF Conveyor Belt plant is in Arakonam, Tamil Nadu, with an annual capacity of 3000 tonnes, is the most modern belting plant in India and is dedicated to the development or manufacture of the finest Conveyor and Elevator Belting products. The plant integrates a high degree of polymer /textile technology with definitive standards in process control/product testing, employing the latest in conveyor belt manufacture. MRF Muscleflex conveyor belting brings international expertise and reliability.

MRF Pretreads MRF Pretreads is the most advanced Pre cured Retreading system in India. MRF made a foray in retreading as far back as 1970. Today, MRF has perfected the art of pre cured retreading with their extensive knowledge in tyres and rubber. In the MRF Pretreads system, the tread rubber is pre cured from MRF's factory under carefully controlled conditions, thereby ensuring you get world class quality. Today, MRF Pretreads has emerged as the Mileage leader in Pre cured Retreading and also has the specialized expertise required for retreading Radial Tyres.

OTHER ACTIVITIES MRF Pace Foundation


Page 36

KRISTU JAYANTI COLLEGE

AN ORGANIZATION STUDY : MRF


The MRF Pace Foundation was established in August 1987, with the legendary Dennis Lillie of Australia as Director, with the singular mission of developing and breeding strike bowlers of tomorrow.

A brain child of late Mr. Ravi Mammen, the birth of this foundation coincided with one of the greatest events in Indian cricket-the hosting of MRF World Series for the first time in the sub-continent. This marked a significant forward step in Indian Cricket. The MRF Pace Foundation is unique in its nature and objective. It selects nurtures and scientifically develops the cricketing skills of youngsters. When it was started it possessed very little facilities other than an unused ground on the Madras Christian College campus. Since then, under the stewardship of Dennis Lillie and the able guidance of Chief Coach T.A. Sekar, former Indian Pace Bowler, the MRF Pace foundation has come a long way.

Racing and Rallying

MRF is pioneer is a pioneer of motor racing in India. Every MRF tyre designed is a result of a special acid test on the race and rally tracks: Sharp turns, abrupt braking, straight stretches of streaming asphalt, excruciating conditions. MRF tyres are made to run at speeds exceeding 150kmph, at which they are exposed to extreme conditions of heat and land traction. The molecular stability of the rubber compounds is tested against severe gravitational stress. Experts observe, analyze and gather information at the pits and the dirt track, which they pass on to the R&D department. This is then reviewed and used to develop safer, better quality tyres not only for formula racing cars that rough it but out on the tough Indian roads every day.

MRF Powerhouse The MRF Powerhouse speaks of commitment to raising Indian motor sports to international standards. It provides MRF`s dedicated team of skilled motor racers, an environment that brings out the best in them. It creates winning opportunities by providing state of art racing equipment that maximizes the output of both man and machine.

KRISTU JAYANTI COLLEGE

Page 37

AN ORGANIZATION STUDY : MRF

PRODUCT PROFILE OF KOTTAYAM PLANT Automotive Inner Tube


Page 38

KRISTU JAYANTI COLLEGE

AN ORGANIZATION STUDY : MRF


This component is kept inside the tyre and which when inflated renders strength and impacts profile to the tyre.

Automobile Tyre This is the basement on which the whole superstructure of automobile rests. Here only conventional or bias tyre of passengers, jeep, truck and farm tyres are manufactured.

Rethreading Material Both conventional and procured tread rubber are manufactured here. While the conventional tyre requires a longer curing time, in case of PCTR , molded tread profile is kept on the top of the worn out tyre and pressurized, with the intermediary of steam.

Flap This is kept in between the tubes and the tyre. This serves as a protective sheath for the tube from external damages of the tyre and also as isolation medium, which filters the passage of the heat from the tyre to the tube. This is generally used for the bigger tyre. Different tyres of flap with valve block reinforcement are also being tried out.

Bladder This is an element used for curing of tyre, which carries the internal media and is mainly used for captive consumption.

Envelopes

KRISTU JAYANTI COLLEGE

Page 39

AN ORGANIZATION STUDY : MRF


These are made of chlorobuty and are used at the time of retreading tyres. This acts as an envelope and retains the thermal input supplied to the tyre.

Vulcanizing Solution This is an aid for vulcanization and is used for the retreading of tyre.

ORGANIZATION STRUCTURE

KRISTU JAYANTI COLLEGE

Page 40

AN ORGANIZATION STUDY : MRF


ORGANIZATION STRUCTURE OF CORPORATE OFFICE

Plant 1: Thiruvottiyur unit Plant 2: Arkonam unit Plant 3: Pondicherry unit Plant 4: Kottayam Unit Plant 5: Medak Unit

KRISTU JAYANTI COLLEGE

Page 41

AN ORGANIZATION STUDY : MRF


Plant 6: Goa Unit Organization Structure: Authority Relationship Major decisions related to the profits of the company or any kind of new investment is made by the top management at corporate office where we come across an Organic Structure because where flexibility prevails and people initiate changes. At the Plant level decisions are made by the administrative officers of each department (Middle level). Worker`s participation is very limited in decision making. Here also we can see more traces of an Organic structure But at the HR and Welfare level there are active representatives from the workers dealing with workmen and their problems. Hence the structure seen below the plant administration level at the worker`s level(Low level)is more of a centralized structure i.e.; a Mechanistic Structure as flexibility is less as people are not given the freedom to initiate much of a change. They follow the rules and procedures made by the plant managers.

Organization Culture Innovation and risk taking: There is a research department that takes care of all the innovations and new developments. Workmen are not given the liberty to any kind of innovation. Attention to details: Employees at every level have to give attention to the minutest detail in order to ensure precision and quality. For eg: The raw material that is received is tested by the technical department before it is sent to plants for production. Such kind of check and attention can be seen at every level in the organization . Outcome orientation: The management gives highest importance to the quality of product and services the company delivers to customers. For this it gives very much importance to the processes and procedures, the quality of the materials used, the efficiency of the workers etc.

KRISTU JAYANTI COLLEGE

Page 42

AN ORGANIZATION STUDY : MRF


People Orientation: MRF is company that gives a lot of importance and care for its employees, their development and welfare. Proper and compulsory training is given to employees for better results and keeping their knowledge updated thereby giving them better chances of development Team orientation At the factory level workers are not divided into teams. Workmen work in shifts and for each shift they are assigned a particular machine. One machine may need more than one employee to operate so a team effort can be seen here.

Aggressiveness The workers are not found to be very aggressive, as any kind of promotion or salary hike is mainly based on the duration of work and attendance of employees. For eg: If an employee has completed 6years tenure in the same post in the company, he may not get a promotion or change of post but his salary is hiked to the next higher grade.

Stability MRF is a company that stresses on continuous improvement. So it always directed towards development and change so as to adapt to the market conditions.

KRISTU JAYANTI COLLEGE

Page 43

AN ORGANIZATION STUDY : MRF

ORGANIZATION STRUCTURE OF KOTTAYAM UNIT

KRISTU JAYANTI COLLEGE

Page 44

AN ORGANIZATION STUDY : MRF

ORGANIZATION PROFILE: KOTTAYAM PLANT Kottayam plant was started as a small masticating unit towards the end of 1969; the first machine was a 3A banbury (a small internal mixer) with a mixing capacity of about 66kgs per batch. Later automotive tube production started in1971. The mixing capacity of the unit was increased with the introduction of 11A and 11D banburys. Later, tread rubber and a host of tyre repair materials were also produced. Kottayam became a supplier of mixed compound to other units of MRF. Pre cured tread rubber was also added to the product range of Kottayam unit. The commissioning of the tyre plant in 1994 was the beginning of a new era in the history of the Kottayam unit. This marked the starting point of a massive expansion drive at Kottayam. Initially tractor front tyres were produced and then it diversified into passenger tyres, tractor rear and truck tyres of various sizes. Cement house was also built to prepare various cements and paints required at tyre plant and also for the production of vulcanizing solution. With the commissioning tyre plant, PCTR production was also increased with more PCTR curing presses being commissioned. Flap production was started in tyre plant initially with two presses and later increased to six. (PCTR and Flap presses were later shifted to PCTR plant when the new plant was commissioned) Kottayam plant supplies mixed rubber to other plants of MRF and hence with the increase in demand, it became essential to augment the mixing capacity of the plant. A new plant exclusively for mixing was built with huge internal mixers (banburys) which have automatic carbon and oil charging facilities. It houses two banburys of P270 type and one banbury of F620 type. With a mixing capacity of 600 tons per day, this is one of the largest mixing units in Asia.

KRISTU JAYANTI COLLEGE

Page 45

AN ORGANIZATION STUDY : MRF


A BD (broken down rubber) mixing unit was also built to ensure self sufficiency in BD production since BD mixing was earlier being done in outside mixing units. The outside mixing units operated with open mills and hence batch to batch consistency was low. With the mixing of BD in the banburys at the BD plant better consistency could be achieved in properties of broken down rubber. BD mixing unit has two 11D banburys and two extruders to sheet out the mixed rubber.

A new plant, mainly for PCTR production was commissioned in the year 2000. This plant now houses a 6 cold feed extruder for extruding, rethreading materials and PCTR slugs, PCTR curing presses, 48calendar for production of tyre repair materials, 68fabric calendar, German tuber for flap slug extrusion, flap curing presses, tyre finishing and repair, tyre clinic, textile lab, finished goods storage and shipping. With the growth in the number of tyre presses and subsequent increase in the requirement of bladders (Supplied by other units of MRF), Kottayam unit started producing bladders for its use and also for supplying to other units. The bladder press is located in tube plant.As a new product, solid tyre production was introduced at Kottayam in 2004. The solid tyre presses are located in the tube plant.

KOTTAYAM PLANT FACTS AND FIGURES (Sept 2007)

Built up area Management Staff Regular Workmen Casual Workmen Total finished goods production Total turnover of finished goods Mixed stock sent to other units Tyre Production

: 6 lakh sq.feet : 252 : 1,115 : 399 : 3,400 MT/month : Rs.37 crores/month : 7,000 MT/month : 52,000 tyres /month

Tubes, envelopes and curing bags total : 2,63,000 /month production

KRISTU JAYANTI COLLEGE

Page 46

AN ORGANIZATION STUDY : MRF


Flap Production Tread rubber production (conventional) PCTR production Repair Material Vulcanizing solution : 82,000 /month : 160 MT/month : 330 tonnes/month : 83 tonnes/month : 32,500 litres/month

INTERNATIONAL CERTIFICATIONS FOR KOTTAYAM PLANT ISO 9001 in the year 2000 ISO 14001 in the year 1996 CQC

MANAGERS AT THE KOTTAYAM PLANT Mr. Michael Ribeiro Mr. Saji Varghese Mr. Francis Mathew Mr. C.S Joy Mr. Cherian Zachriah Mr. Anil Petre Mr. Simon C.P Mr. Raghuram Major. Sivadasan Mr. K.M Anil Kumar General Manager Plant Production Manager Plant Engineering Manager Plant Technical Manager Plant Quality Assurance Manager Plant Accounts Manager Plant Human Resources Manager Plant Industrial Engineering Manager Security Officer Safety officer

KRISTU JAYANTI COLLEGE

Page 47

AN ORGANIZATION STUDY : MRF

FUCTIONAL AREAS

KRISTU JAYANTI COLLEGE

Page 48

AN ORGANIZATION STUDY : MRF

PRODUCTION

KRISTU JAYANTI COLLEGE

Page 49

AN ORGANIZATION STUDY : MRF

STRUCTURE OF PRODUCTION DEPARTMENT

KRISTU JAYANTI COLLEGE

Page 50

AN ORGANIZATION STUDY : MRF

Production is the primary function of MRF and hence all other functions are supporting functions. Production is carried out in four plants in Kottayam unit. They are:

Tube Plant called Plant1 Tyre Plant called Plant2 Mixing Plant called Plant3 PCTR Plant called Plant 4

The following are the main functions of the production department: Planning for Production Process Every month a plan is given to the plant by the central planning department, the plant panning department will prepare a simulation plan by dividing the month into 3segments of 10 days each. This simulation plan is taken as the guideline for each plant to plan their production process. The available inventory and the priority of dispatch are taken into consideration while preparing the daily schedule. Slight changes are made in the simulation plan to obtain the objective and improve production efficiency.

Material Request and Receipt The daily requirement of raw material is calculated at each plant after considering the available inventory and the scheduled production of the next day. The raw material request

KRISTU JAYANTI COLLEGE

Page 51

AN ORGANIZATION STUDY : MRF


is made to the raw material store. Raw material store makes arrangements to deliver the requested material to the plants. The receipt of material is acknowledged by the production department to the raw material store by the production signing on all the copies of the transfer or issue certificates. In case of in process material, request is given 1-3 days in advance to the concerned plant which produces the material.

Processing Processing is carried out as per the technical specifications of the BSP (Basic Standard Practice) and the work instructions of the respective department. Set up verification is done for each product and each run. Once the process is stabilized, the process parameters are checked and recorded. If the parameters are as per specification process is continued, else the necessary correction is made and the process is resumed.

Production department ensures that all necessary instruments and equipments are calibrated by checking the calibration sticker on the instrument. Cases where the instruments are overdue are for calibration is overdue are reported to the instrumentation department through AVO (Avoid Verbal Order). The supervisor stops usage of such equipments depending on the criticality of system violation. Whenever machines stop or behave abnormally the engineering department is informed and a maintenance request is made.

Product Identification and Traceability The objective of product identification and traceability is to prevent mix up of products and to ensure traceability of products at various stages. This applies to raw materials, in process materials and finished goods.

KRISTU JAYANTI COLLEGE

Page 52

AN ORGANIZATION STUDY : MRF


Specific ways of identifying each material at each stage is defined. For example, in case of extruded tubes, details like size, month code, year code, plant code, date of extrusion, extruder operator code are printed.

In the case of traceability, for example, while extruding treads, the details of stock (stock code, date and shift of mixing, batch numbers) used for extruding those treads are entered in the traceability register.

Inspection Inspection is done to ensure that the materials, equipment, storage area are free from any contamination.

MRF Kottayam unit produces:


9202 Tubes per day 1750 Tyres per day 50 Solid tyres per day 8MT Tread rubber 2300 Flaps per day

KRISTU JAYANTI COLLEGE

Page 53

AN ORGANIZATION STUDY : MRF

FINANCE

KRISTU JAYANTI COLLEGE

Page 54

AN ORGANIZATION STUDY : MRF

STRUCTURE OF FINANCE DEPARTMENT

KRISTU JAYANTI COLLEGE

Page 55

AN ORGANIZATION STUDY : MRF

FINANCIALS ANNUAL SUMMARY OF THREE YEARS

PERIOD ENDING Turnover (Rs. in crores) Net Profit (Rs. in crores) EPS in (Rs.)

Sep 2007 5036.75 171.78 401.75

Sep 2006 4233.66 79.91 185.66

Sep 2005 3437.13 40.31 92.26

Finance is the lifeblood of any organization. Hence it becomes very important to mange finance properly. It is one of the major elements, which activates the overall growth of the economy. It

knits the financial system directly contributing to the growth of the organization and hence the economy

Functions of Financial Management Estimation of financial requirement of the firm Selection of right and appropriate sources of funds After selecting the right source, raising of funds required by the firm Effective working capital management to ensure smooth running of business Financial management also ensures fulfilling social obligation of business

According to J.F. Bradley, Financial management is the area of business management devoted to a judicious use of capital and careful selection of source of capital in order to enable a business firm to move in the direction of reaching its goal.

KRISTU JAYANTI COLLEGE

Page 56

AN ORGANIZATION STUDY : MRF


OBJECTIVES OF FINANCIAL MANAGEMENT Maintaining adequate liquid assets Maximization of wealth Maximization of profit

The functions of the accounts department at the plant level has been divided into Financial accounts Cost accounts Wages and salaries Sales tax

Financial Accounts This branch deals with all types of cash payments and receipts. This will include payments for engineering and raw material purchase, petty cash payments, operation and reconciliation of bank accounts, payments to the government in the form of taxes and levies, payment of PF, deduction from salary and payment of loan outstanding and insurance premium of employees, freight payments, payments in lieu of travel bills of employees, canteen expenses, payment to contractors, payment of leave travel allowances, medical reimbursements etc. Cash receipts in the case of scrap sales and any other cash receipt will also come under this branch of accounts.

Cost Accounts This branch deals with forecasting, budgeting, analysis and reporting the income and expenditure of the company. The budget for expenditure is prepared using standard costing principles and it
KRISTU JAYANTI COLLEGE Page 57

AN ORGANIZATION STUDY : MRF


is compared with actual expenditure. Any variation from the budget (whether positive or negative) is analyzed to find the exact reason and is reported to the top management. All MIS (Management Information System) reports are generated from cost accounts. An example of MIS report is MUL (Material Utilization Loss) report which tracks the loss to the company due to various reasons related to material utilization. Some of the losses may be controllable and some others may be uncontrollable. The objective of the MUL report is to give an idea about the loss and try to find out ways to reduce the controllable losses. Wages and Salary Computation of wages and salary is done by this section of the accounts department. Wages of workmen are fixed in the long term agreement and is calculated on a daily basis depending on various factors like grade, number of hours worked, the output achieved etc. In case of staff up to MB3 grade, the salary is calculated and paid by the plant. For staff above MB3 grade, salary is computed and paid by the corporate office.

Sales Tax All matters related to sales tax are handled in this section. A monthly return for sales tax is filed on behalf of the sales depots. VAT (Value Added Tax) system has been introduced and all matters related to this is looked after by this department of accounts. C forms are issued for purchases from outside the state and F forms are issued for receipt of goods from depots.

Raw Material Stores Raw Material stores will receive a copy of the raw material requirement for the month which is prepared and sent by the plant planning. This is also sent to central planning and central purchase by plant planning. Based on the requirement central planning and central procurement of materials and issues a delivery schedule to the plant. On receipt of delivery schedule the supplier will release the specified quantity of material at the specified dates to the plant. Raw materials,

KRISTU JAYANTI COLLEGE

Page 58

AN ORGANIZATION STUDY : MRF


consumables, fuel etc are received at the factory gate with the delivery schedule and the purchase order which are verified before delivery to plant. The load is weighed, GAE (Goods Arrival Entry) is made and the load is redirected to the unloading point through the security department. The unloading point is usually the raw materials godown, but sometimes unloading is done at the plants where it is consumed. At the unloading point visual inspection is done and then materials are stored with proper identification tags showing the primary status of the material (Hold/Pending for test). Each material has a specified storage space and it is placed in the storage area. Sample Transfer or Visual Inspection Report is prepared and samples are collected for testing as per the documented sample plan. The sampled bag is identified and samples are sent to the technical department for testing. GRN (Goods Receipt Note) is prepared at this point. The materials certified as OK by the Technical department are issued to production as per the request received from the production department for each plant. Stock inventory and stock status reports are prepared every month. The rejected materials are sent back to the suppliers and the cost is recovered. Transfer of materials to each plant is also monitored here.

KRISTU JAYANTI COLLEGE

Page 59

AN ORGANIZATION STUDY : MRF

TECHNICAL

KRISTU JAYANTI COLLEGE

Page 60

AN ORGANIZATION STUDY : MRF

Sample Transfer or Visual Inspection Report is prepared and samples are collected for testing as per the documented sample plan. The sampled bag is identified and samples are sent to the technical department for testing. The technical department tests all the samples sent after inspection and informs the test results through the Material Release / Rejection / Hold Note printed at the bottom portion of the Sample Transfer or Visual Inspection Report. Based on the test result:
A GREEN color sticker captioned OK is affixed if the material is OK. A RED color sticker captioned REJECTED is affixed if the material is Not Fit. An ORANGE color sticker captioned HOLD is affixed if the material needs further

tests before reaching a concrete decision. The materials certified as OK by the Technical department are issued to production as per the request received from the production department for each plant. The rejected materials are sent back to the suppliers and the cost is recovered. The technical department rules out any kind of defect before the raw material is consumed by any plant for production. This is an attempt by MRF to be very cautious and to ensure quality right from the start till the end. In other words the company makes it a point to ensure supreme quality from raw materials to the end product and even after sales service.

KRISTU JAYANTI COLLEGE

Page 61

AN ORGANIZATION STUDY : MRF

HUMAN RESOURCES

KRISTU JAYANTI COLLEGE

Page 62

AN ORGANIZATION STUDY : MRF

STRUCTURE OF THE HUMAN RESOURCE DEPARTMENT

KRISTU JAYANTI COLLEGE

Page 63

AN ORGANIZATION STUDY : MRF

Man is the most important element of any organization .It is he who controls and utilizes all other resources. The HR department at MRF is one of the best in the country. They are proud of their ability to nurture individuals and provide them the space and empowerment they need to
KRISTU JAYANTI COLLEGE Page 64

AN ORGANIZATION STUDY : MRF


hone their talents. Their size gives them the unique ability to provide fast growth and high responsibility Employees What makes an organization is its people. At MRF, the Mantra for employee delight focuses on 5 Ps They believe that one of the most important drivers of growth and success for any People, Pride, Passion, Processes and Performance . MRF follows an open door policy to approach the management, which helps resolve issues with mutual agreements. They encourage people to stand up against any unfair treatment for which they have: MRF ensures transparency through the various communication policies, strategies and plans. Regular Employee Communication Forums provides a platform for the employees to raise issues that require resolution. Their leaders strongly believe in facilitating and initiating activities that help employees manage their health and well-being. The focus always remains to redefine leadership; they develop leaders who enable performance and inspire their people to unleash their potential. Their people orientation reflects in their vision of being targeted by top talent, and a key aspect of their business focus building a best-in-class leadership team that nurtures talent at every level.

Current Number of Employees at Kottayam Plant: 2377

FUNCTIONS OF THE HR Recruitment and Selection of employees & General Administration Training Performance Appraisal Industrial Relations and Labour Management Disciplinary Actions and Proceedings

KRISTU JAYANTI COLLEGE

Page 65

AN ORGANIZATION STUDY : MRF


Statutory and Non Statutory Welfare Measures Contract Services

Recruitment, Selection, Placement, Induction and Orientation In the case of management staff, the functions of recruitment, selection and placement is done by the corporate HR department. Induction and orientation is given by the plant HR department. This is to align the objectives and goals of the individual with that of the company, so that the synergy produces benefits to the company as well as to the individual.

In the case of workmen, selection is done by the plant HR department through a written test followed by an interview. Then they are given induction and orientation before being sent to the plant for on the job training. Induction and orientation is given to workmen for one day.

Certain pre requisites for selecting workers: Height: 5 5 or above Weight: Min50 kgs Worker`s are selected at 100% merit basis. Experience is considered as an additional qualification.MRF provides the tradition of selecting the relatives of existing employees whenever a vacancy arises provided the relative is fit and suitable for the job. The workmen selected in MRF have to work for the first 3 years as TEMPORARY or CASUAL employees, and then they work for one year as TRAINEES and next one year on PROBATION and finally after 5 years they get the status of CONFIRMED employees.

Wages and Salary Administration Wages of workmen are fixed based on the long term agreement. It is paid to the workmen based on the work done on each day as piece rate system. The work done on each day is recorded in work sheets and it is routed through the time office to the accounts section where wages to be

KRISTU JAYANTI COLLEGE

Page 66

AN ORGANIZATION STUDY : MRF


paid are calculated and paid. Wages to be paid for the casual workmen is fixed and revised from time to time. In case of management staff, salary is fixed by corporate HR department. Plant HR coordinates the periodic appraisal of performance which is the basis of salary revision. Salary for staff is paid on the basis of attendance and this is monitored by the time office which is a function of the HR department. Time office does the functions of time keeping, attendance monitoring and upkeep of leave records. The industrial engineering department would compute the manpower requirement at the various work centers. The HR department does the recruitment and selection which is followed by the induction and training. Vacancies are notified as and when they occur in the leading newspapers. Allowance The workmen are provided dearness allowances, fringe benefits, bonuses and other payments according to the rules and regulations of the company. There is also overtime wages and attendance bonuses. Overtime bonuses are given to people who normally work beyond their time; such as lunch time, night shift etc. Allowances include attendance bonuses. This is also given to employees working outside factory premises, night shifts etc. Promotion and Transfer Promotion means shifting an employee to a position in the same hierarchy. This may be due to seniority and performance. Promotion depends upon parameters such as seniority, merit, suitability of the job etc. for some promotions a test is also done and an interview is also provided. For transfer of an employee from the organization, he is paid gratuity benefit as required by statutory standard. A Farewell party is given to the employee. He is paid the benefits he has to get from the organization.

Industrial Relations and Labour Management The company has very cordial industrial relations. The two trade unions of the company are: MRF Employees Union: INTUC
Page 67

KRISTU JAYANTI COLLEGE

AN ORGANIZATION STUDY : MRF


MRF Employees Union: CITU

The trade union consists of an organization. They also have a level of hierarchy in the organization. The local leaders of the trade unions are the Secretary, Treasurer and Convener. The external leader comprises of President, Vice President and General Secretary. The workmen category of MRF is controlled by a long term agreement every three years. Negotiations and conciliation between management and workmen are made over the table through continued discussions. This is mainly organized by the HR department with the help of industrial engineers and other departments involved.

Disciplinary Action Absenteeism is strictly dealt with in MRF. There is a general principle for the employees who are absent or who are not regular. This process is carried out very strictly and is applicable to all employees.An employee who absents himself regularly; first he is given a show cause notice. If he still continues to be absent then he is given the next warning. After that if he is irregular he will be suspended, or will be terminated. This principle is applicable to all absentees and people who violate the rules and regulations of the company. The procedure of these rules is descriptive. People absent regularly are given a show cause notice. A charge sheet is issued upon receipt of unsatisfactory reply to the show cause notice and a domestic enquiry is also issued. By this procedure, absentees and people who violate the rules and regulations are made to understand the situation that led them to misconduct. The second show cause notice is issued for the employee to present his reasons. If he fails to provide a convincing reason, then he will be suspended or even dismissed from the company. These rules are common for all employees who are trying to falsify the record or status of the company.

Welfare Labour welfare is the statutory code controlled by the Factories Act for the benefit of employees within the existing industrial system, working and sometimes living and cultural conditions of the employees.

KRISTU JAYANTI COLLEGE

Page 68

AN ORGANIZATION STUDY : MRF


Labour welfare aims at providing the physical, psychological and general wellbeing of the working population. Labour welfare is carried out by the Welfare Officer, who takes care of the physical and general wellbeing of the employees. The functions of the Welfare Officer are:

To maintain a harmonious relation between the factory management and workers by establishing contact and holding consultations.

To study and understand the problems of labour at workplace in order to help factory management to shape and formulate labour policies and to interpret the policies to workers in their language.

To notify the grievances of the workers to the management and act as a liaison between the management and labour.

To help factory management to ask questions relating to the training of new workers, apprentices, supervisors and control of notice board and information bulletins to further the education of workers and to encourage their attendance at technical institutes.

To advice on provisions of welfare facilities such as housing, foodstuff, recreational facilities etc.

To promote the relation between the concerned departments of the factory and workers and this will bring about efficient productivity, and also to advice the workers to adapt or adjust themselves to their working environment.

To watch industrial relations and act as a mediator in an event of a dispute arising between factory management and workers and help to bring about a settlement by persuasive efforts.

To encourage provisions for amenities such as canteen, drinking water, benevolent schemes in payments, pension funds, gratuity payments, granting loans also providing legal advice to the workers.

To assist and help the management achieve its objectives. Suggest the workers to raise their living standards and to promote their wellbeing.
Page 69

KRISTU JAYANTI COLLEGE

AN ORGANIZATION STUDY : MRF


To study absenteeism and labour turnover and to take strict measures to prevent them.

Medical Facilities Every employee and his family members are covered under health schemes based on their salary package. At the moment if it is below Rs.7500/- it will be covered under ESI Scheme. If it is above the limit then a special medical insurance scheme is arranged for them covering the expenses in connection with hospitalization and personal accidents.

Voluntary Retyrement Scheme The employees who are permanently disabled or handicapped can retyre from service. If his son is fit and suitable for work he will be appointed in his place, else a mutually agreed compensation will be given to him.

Other Welfare Facilities Loans are given to employees to purchase vehicles for them. Educational loans are also provided. Basic essential facilities such as food, shelter, sanitation, recreational facilities, reading facilities etc. are also provided. Workers in the factory are provided with safety gloves, shoes, masks for accident free working environment.

Counseling Cell MRF has a Counseling Cell comprising of nine trained counselors. Employees with problems are dealt with great care and compassion. Problems can be of any nature: personal, family, or other social problems. If any employee is found with an addiction or mental problem they are sent for de-addiction and psychiatric counseling to outside agencies at the cost of MRF.

KRISTU JAYANTI COLLEGE

Page 70

AN ORGANIZATION STUDY : MRF


Home Visits The welfare officer visits the houses of the employees twice a week to make general visits, visits based on problems, courtesy visits, weddings, functions, funerals and other need based visits. Such visits help the shop floor personnel to understand the cause of employee`s behavior for any problem committed by him. Even the disciplinary proceedings for absenteeism and other violations are preceded only after hearing the general report based on such home visits.

Free Tyre and Tube Scheme Every confirmed employee in the grade Junior Assistant to Assistant Manager who owns a vehicle are entitled to one set of two wheelers tyres and tubes on completion of five years of the company. Those in grades of Deputy Manager and Manager are entitled to one set of four wheeler tyres and tubes on completion of 5years of service in the company.

Canteen Facilities The canteen is also run under the Human Resource Department. Quality food twice a day with snacks and tea are provided to employees at subsidized rates. The company has appointed a qualified supervisor to monitor and control the activities of the canteen. There is also a general committee comprising of management representatives and the union representatives to decide on frequent menu change and to maintain the standard of food. The canteen has good house keeping staff to keep the canteen in good condition.

Family Welfare Schemes MRF runs a family welfare center, a charitable society for mental, physical, spiritual and intellectual wellbeing of employees, their wives and children. There is an executive committee of nine members. This consists of a Chairman, the wives of three management staff, wives of three worker staff, the family welfare coordinator and the officer HR.

KRISTU JAYANTI COLLEGE

Page 71

AN ORGANIZATION STUDY : MRF


The ladies forum conducts monthly training programs to the family of employees. This includes safety savings, general health, cooking, counseling etc. These programs are conducted free of cost. On festive occasions like Onam, Christmas etc celebrations are organized.

Income Generation Schemes To meet financial needs of the families of employees the women are encouraged to undertake certain activities like stitching, cooking etc. Tailoring classes are provided for women and teenage girls. Cutting, hand or machine operated embroidery are taught here. For this purpose a full time tailoring teacher is employed.

Balavedhi (A Forum for Employees Children) It is a small committee for the children of employees. It conducts monthly training programs for children on various subjects like general health, education, safety etc. This program also provides various levels of personality and leadership camps for several age groups. This helps children in improving their leadership skills, communication ability, public speaking, interpersonal relations and effective memory. MRF encourages the children of employees to actively participate and compete in education and sports through scholarships instituted in the name of Mr. Ravi Mammen and Mr. K.C. Mammen Mappillai. Awards are also granted for SSLC top scorers. Outsourcing and Labour Contract The changing trend of any management is to concentrate more on core jobs and leave the fringe and peripheral jobs on job contracts. But being the principal employer MRF sees to it that statutory requirements are strictly adhered to. Training The training program is done for the employees. It is aimed at improving performance of a particular job. Training helps the employees to help in achieving the objectives of the

KRISTU JAYANTI COLLEGE

Page 72

AN ORGANIZATION STUDY : MRF


company by providing opportunities to all employees at all levels in the organization to acquire the requisite knowledge. Training is an ongoing and continuous activity of MRF. Training is provided to all the newly appointed staff and workers. The training policy of MRF is to provide and develop knowledge, skills and behavior of employees to continuously improve their performance. To achieve the ultimate goals of the company, all the MRF plants with the corporate office:

Identifies and documents the training needs of each employee, through competence evaluation each year.

Designs and publishes training calendars and schedules. Provides training periodically based on identified needs and as per the documented schedules.

Monitors and evaluates the training process and outcomes to assess and to decide the next training cycle requirements.

Time Office The time office keeps track of the attendance of employees. The functions of the time office are given below: Attendance details Leave details Wage calculation Daily reports Attendance and time is considered very strictly in the organization. There is an automatic punching machine in all the departments. The employees are asked to punch the machine to register their attendance and time in and time out. Work Timings:
KRISTU JAYANTI COLLEGE Page 73

AN ORGANIZATION STUDY : MRF

Administrative Staff: 8:00 am to 4:30 pm Factory Workmen: Work in shifts 7:00 am to 3:00 pm 3:00pm to 11:00 pm 11:00pm to 7:00 am

QUALITY ASSURANCE
KRISTU JAYANTI COLLEGE Page 74

AN ORGANIZATION STUDY : MRF

STRUCTURE OF THE QUALITY ASSURANCE DEPARTMENT

KRISTU JAYANTI COLLEGE

Page 75

AN ORGANIZATION STUDY : MRF

The expectations of a customer with regard to the quality of products depend on several factors and the intended use of the product. The expectations can be performance, price, dependability, consistency etc. If the product fulfills the customer`s expectations when it is used, he will be
KRISTU JAYANTI COLLEGE Page 76

AN ORGANIZATION STUDY : MRF


pleased with the product and say that the product is of good quality else, low quality. Hence we can define quality of a product as its ability to fulfill the customer`s expectations. In other words it is defined as fitness of use. Quality is considered as one of the most effective tool to improve productivity, to achieve cost effectiveness, to improve profitability and market share and to remain competitive in the global market. In the business environment of today, quality impacts not only products and services but many other relevant entities such as process, systems, people and organization.

Functions of Quality Assurance Department Quality assurance department has a main aim of customer satisfaction. Hence its prime duty is to ensure that any customer complaint should be taken seriously and should be communicated to all concerned. Problem solving tools are employed to ensure that the problem is solved and error proofing methods are adopted to ensure that such problems dont occur again. The quality system requirements of customers are collected and all efforts are taken to see that they are met. This is done by applying statistical control techniques and by training the operators.

The profitability of the company is improved by reducing defects and waste generation. This is done by initiating projects for waste reduction and forming task forces for close follow up. Specific targets are placed in each area for waste reduction and quality improvement and are done in coordination with all other departments.

The main function of the QA department is process audit and final product inspection. This will include monitoring the inspection status of incoming materials, in process materials, process parameters and finished product inspection.

Ensuring identification and traceability of all materials is also a function of QA. Each process and product has specifications and tolerances which are given by the technical department. A document called Basic Standard Practice is also available which says how the process is to be carried out, what are the do`s and donts of each process etc.

KRISTU JAYANTI COLLEGE

Page 77

AN ORGANIZATION STUDY : MRF

The QA department checks whether the process is carried out in concurrence with the laid down specifications and the basic standard practice. The inferences are recorded and follow up action is initiated where ever any abnormality is found. Special attention is given to critical and problematic areas. Trials are followed up and the relevant processes and parameters are recorded and reports are published.

When ever a process or product doesnt meet specifications, the process is stopped and the defective pieces are withheld using a tag called NCM (Non Conforming Material). This will later be disposed in an appropriate manner by the technical department.

All major highlights of quality assurance reports are discussed in weekly and monthly quality meetings so as to make everyone aware of the situation and to initiate permanent corrective action.

QA coordinates the removal of scrapped items so that exact data can be obtained on the reasons for scrap and exact quantity of material scrapped.

QA also initiates studies for implementing new systems and procedures on the principle of continuous improvement. FEMA (Failure Mode Effect Analysis) is carried out and a control plan is also prepared to ensure that the causes of failure are avoided before they happen.

Special care is taken in the following cases:

Whenever a tool change (tyre/tube/flap/bladder/PCTR mould change/tyre building drum change) is done, the relevant parameters are checked by QA and certification is done before commencing production. In such cases if it involves a time change (curing time change/ mould change) or a media change (changing from steam cure to air cure and vice versa in case of tube curing) such cases are also checked and certified.

When ever new machinery is installed QA carries out the process of industrialization of machinery in collaboration with the technical and engineering department.

KRISTU JAYANTI COLLEGE

Page 78

AN ORGANIZATION STUDY : MRF


Audits on suppliers and outside godowns are conducted periodically to ensure that are procured are of the required quality and also to ensure that they are stored in the manner that doesnt give any room for deterioration. Whenever a finished product is returned to a factory due to any defect, those products are inspected and the reasons found out are communicated to everybody concerned.

Slow moving and non moving items are tracked at regular intervals to avoid deterioration of material and to avoid production of material not required in the market.

KRISTU JAYANTI COLLEGE

Page 79

AN ORGANIZATION STUDY : MRF

ENGINEERING

KRISTU JAYANTI COLLEGE

Page 80

AN ORGANIZATION STUDY : MRF

STRUCTURE OF THE ENGINEERING DEPARTMENT

KRISTU JAYANTI COLLEGE

Page 81

AN ORGANIZATION STUDY : MRF

The Engineering department functions are divided into mechanical, electrical, instrumentation, civil and environmental engineering. The main functions are:

New machinery layout preparation Erection Commissioning of new machinery Preventive maintenance Breakdown maintenance Condition monitoring Overhauling of machinery and other related equipments Maintenance of utility items like generators, boilers, pumps, compressors, freezer liners and cooling towers

Maintenance of material handling systems like lift, hoist, chain block, gantry, forklifts Maintenance of equipments at pump house and training centers

MECHANCAL ENGINEERING Preventive Maintenance All equipments that need preventive maintenance are listed out. It is ensured that equipment history and manuals are available for all machines. A preventive maintenance schedule is prepared after a careful analysis of breakdowns in the machine and based on the personal experience of the maintenance personnel. The annual maintenance schedule thus prepared is divided into weekly schedules.

KRISTU JAYANTI COLLEGE

Page 82

AN ORGANIZATION STUDY : MRF


Preventive maintenance schedule for the particular week is taken and the necessary materials, tools, manpower and spares are arranged. Necessary clearance is obtained from planning and production (for production equipments) and the machine is released for maintenance. The scheduled maintenance activities are carried out based on work instructions and experience. Then the machine is checked and handed over to production.

Breakdown Maintenance The defective machinery is identified either by production or by engineering and a maintenance request is generated. The department that detects the flaw( production or engineering) raises the maintenance request and arranges for tools, maintenance personnel and spare parts. The machine is then released for maintenance. The required maintenance jobs are carried out and the machine is thoroughly checked. If the machine is OK then it is handed over to the respective department.

Every month down time analysis is done and permanent corrective actions are taken in case of recurring failures. Mean time between failures (MTBF) and Mean time before repair (MTBR) are the measures adopted to track the improvement.

ELECTRICAL ENGINEERING MRF Kottayam unit falls under the EHT (Extra High Tension) consumer category .All the consumers who use 66KV and above are included in this category. The incoming power supply for this unit is 110 KV. Normally MRF Kottayam gets power from Pallom Sub station but there is also a provision to get supply from Pala sub station in case of emergency. The total connected load of the unit is roughly 30000 HP. The maximum demand is 10,000 KVA. For backup power supply, the unit has three generators of 1000 KVA each and one generator of 5000KVA capacity.

CIVIL ENGINEERING
KRISTU JAYANTI COLLEGE Page 83

AN ORGANIZATION STUDY : MRF


Civil engineering department does the work of preparation of project proposals, drawings and estimates as per requirements for construction and extension of factory buildings, equipment foundation, plant offices, and construction of cable and pipeline trenches, storm water drains and site development work. The department creates links with government agencies and local bodies for getting approval for building plans and permits. Projects are executed on item rate contracts. Finalization of contract rates and issue of work orders are done by this department. Supervision and providing technical support are done along with the job of recording the work done, taking measurements and check measuring contract bills. All civil structures are maintained by the civil engineering department. Periodic repair of concrete floor, A/c sheet roofing and valley gutters, maintenance of plumbing and sanitary fittings such as toilets, washing facilities etc, de silting of storm water drains and annual repainting of buildings are other functions of the department. Work permits are issued to workmen to ensure their safety. These are done carefully checking the conditions. The following permits are given: Height permit for working at height above 3meters Portable electrical equipment permit Confined area work permit Excavation permit Hot water permit

Once permit is given proper supervision is to be ensured.

ENVIRONMENTAL ENGINEERING This branch of engineering is mainly concerned with monitoring of factors which affect the environment and finding ways by which they are minimized or eliminated. Water pollution, air pollution and sound pollution are the main factors that come under preview of environmental engineering.

KRISTU JAYANTI COLLEGE

Page 84

AN ORGANIZATION STUDY : MRF


Water Treatment Effluent water is sent into anaerobic digester (where it doesnt have any air contact). Here 85% to 90% of suspended solids settle down to form the sludge. The water from which suspended solids are removed is then sent to an aerator and clarifier where 90 to 95% of the suspended solids are removed. This is then chlorinated and is called treated water which is used for roof cooling and irrigation. 300 kilo liters of water are treated per day using a parallel process. A wet land is also created on a trial basis where the effluent water is aerated by the roots of a special type of reed which degrades the organic matter and thus purifies water.

Air Treatment Air pollution is being monitored by engaging an outside agency. Particulate matter in air is measured and compared against standards of permissible levels. Sound Pollution is measured in terms of decibels and compared against standards of permissible levels. This is done twice a year.

KRISTU JAYANTI COLLEGE

Page 85

AN ORGANIZATION STUDY : MRF

SAFETY

KRISTU JAYANTI COLLEGE

Page 86

AN ORGANIZATION STUDY : MRF

MRF has a well defined safety and health policy which is as follows: It is the policy of our company that the SAFETY and HEALTH of our employees shall be our FIRST priority. It is the responsibility of everyone in the organization, regardless of the position he occupies to ensure that everyone in the factory returns home to their beloved ones without any injury today and every day. We shall observe this policy not only in letter but also in spirit and offer ACCIDENT FREE SAFE PRODUCTION for the benefit of one and all.

Implementation of the Safety Policy Necessary procedures, rules and guidelines for the effective implementation of this policy without prejudice to the statutory requirements are formulated by the Chief Safety Officer and Plant Safety Officer. They will also render necessary advice and assistance to all management staff in the effective implementation o this policy at respective Sections, Plants, Departments and Unit as a whole. The General Manager is responsible to implement the Safety Policy at the Kottayam plant. Training is given to all employees to alleviate ignorance on safe and standard work practices which will enhance safety. Training will include:

Induction training is given on the basic safety aspects and Safety Officer will be the faculty for induction training. This training will brief on safety devices on machines and personal protective equipment. The training will also cover the proneness of a factory atmosphere to

KRISTU JAYANTI COLLEGE

Page 87

AN ORGANIZATION STUDY : MRF


factory atmosphere as compared to the outside world, general safe practices and safety precautions to be followed on dangerous machines. On the job training provides points on specific activities related to the nature of work of the new employees. This also covers aspects on applied safety related to specific machines and specific sections. Shop Floor Officer or Supervisor will be the faculty for this training. Periodic/ Refreshment training is given to experienced employees. This training covers the practical aspects or specialized subjects of safety. External faculty, Chief Safety Officer or Safety Officer will be the faculty. Enforcement of Safety Rules and Guidelines This is regarded as one of the most important area of accidents prevention. The activities of subordinate staff or workmen in respective Sections, Plants or Departments are closely monitored to prevent any unsafe act or act of safety violation. This responsibility has been assigned to respective Shop Floor Supervisors or Officers (at shop floor level), Plant manager or Plant In charge (at plant level), Department Managers (at department level). The tool used for this is Job Safety Instructions which has to be imparted to subordinates beforeand during the course of work. Safety Audit Safety audit is done by the Safety officer or by the Chief Safety Officer during his visits. Useful information is gathered on unsafe conditions, unsafe acts and on the level of enforcement of safety rules and procedures. Any matter that requires attention is brought to the notice of the respective staff for corrective action. The unit chief is also intimated. Plant Safety Officer will assist the staff in taking corrective action if required. Corrective and Preventive Action Unsafe acts and conditions which are not rectified will be discussed in the Safety Committee meeting. The decisions of the meeting are final and are binding on the entyre unit. A detailed presentation is made on the analysis of accidents by the Safety Officer in this meeting. Safety Awareness promotional Activities

KRISTU JAYANTI COLLEGE

Page 88

AN ORGANIZATION STUDY : MRF


Boards have been displayed at all conspicuous points. Safety promotional literatures are released to increase awareness among employees. Safety competitions are conducted during Safety Week celebrations.

SECURITY

KRISTU JAYANTI COLLEGE

Page 89

AN ORGANIZATION STUDY : MRF

STRUCTURE OF THE SECURITY DEPARTMENT

KRISTU JAYANTI COLLEGE

Page 90

AN ORGANIZATION STUDY : MRF

Industry security in the public and the private sector can be defined as protection of men, materials, machines, buildings, classified information and company operations and to provide protective service against fire, theft or damage to the company assets and the installations.

KRISTU JAYANTI COLLEGE

Page 91

AN ORGANIZATION STUDY : MRF


The main functions of the security department are: Control of access Check thefts Checking In/Out of raw materials, empty vehicles, vehicles carrying finished goods, scrap etc. Maintenance and upkeep of firefighting equipment, fire hydrant system and fire fighting training. Control movement of personnel and material at the gate. Control and checks on the company hired taxis and scrutiny of bills. Coordination of security duties with private security agencies and preparation of bills. Liaison with Fire and Police department and help the company obtain permits and sanctions on time.

Imparting training on emergency preparedness and security and fire awareness to MRF employees.

Control and check entry of contract workers.

KRISTU JAYANTI COLLEGE

Page 92

AN ORGANIZATION STUDY : MRF

MARKETING

KRISTU JAYANTI COLLEGE

Page 93

AN ORGANIZATION STUDY : MRF


MRF Kottayam doesnt have a marketing department. The structure of the marketing departments at MRF as a whole is given below:

KRISTU JAYANTI COLLEGE

Page 94

AN ORGANIZATION STUDY : MRF


Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services that are of value for others. According to Philip Kotler, Marketing is a human activity directed at satisfying the needs and wants through an exchange process. Marketing management is the functional area of management concerned with planning, organizing, directing and controlling the activities related to the marketing of goods and services to satisfy the customers needs which are ever changing.

Objectives of Marketing Management Creating demand Customer satisfaction Increasing the goodwill of the company Increasing the market share Raising the standard of living of the consumer community

Marketing Strategy and Network MRF has emerged as one among the market leaders in the tyre manufacturing sector in the world. It was also awarded four times by J.D. Asia Pacific for customer satisfaction. This achievement was possible because of MRF`s marketing strategies, product quality and after sales service to customers. MRF has a wide marketing network, which hosts 68 sales centers, 2500 distributors and exports to over 75 countries. Tyre and tyre related products are sold under the brand name MRF and distributed in domestic markets through sales offices, dealers and franchises. The Corporate Executive Director based in Chennai, guides the marketing activity. In Kerala, the district office is at Ernakulum.

KRISTU JAYANTI COLLEGE

Page 95

AN ORGANIZATION STUDY : MRF

MRF Sales Network NORTH New Delhi Agra Bareilly Bikaner Chandigarh Faridabad Haldwani Hissar Jaipur Jalandhar SOUTH Chennai Ananthpur Bangalore Belgaum Calicut Coimbatore Ernakulum Hubli Hyderabad Madurai Kolkata Asansol Cuttack Dhanbad Guwahati Muzaferpur Patna Ranchi Siliguri EAST WEST Mumbai Ahmadabad Aurangabad Baroda Bhopal Goa Indore Jabalpur Jodhpur Nerul

Advertisement and Sales Promotions MRF concentrates on advertising its products through TV, newspapers, magazines etc. The company also uses posters and hoardings for marketing awareness of their products at selected locations.

MRF involves itself with various sales promotion activities. They bought the 6th World Boxing Championship to Mumbai, the first of its kind with 39 countries participating. Smile campaigns on Indian roads, MRF Pace Foundation, racing and rallying and the list of MRF`s promotion activities goes endless.

Tyre and tyre related products are sold under the brand name MRF and is distributed in domestic markets through sales offices, dealers and franchises. Conveyor belts are sold under the brand name MRF Muscle Flex to customers directly from the Arakonam plant.
KRISTU JAYANTI COLLEGE Page 96

AN ORGANIZATION STUDY : MRF


The major OEM (Original Equipment Manufacturers) customers of MRF tyres and tubes are Ford India Ltd., General Motors India Ltd, Maruti, Hindustan Motors, Hyundai, TATA Motors, Asok Leyland, Honda Siel, Hero Honda, Bajaj, LML Ltd., Honda Motors & Scooters India Ltd., Mahindra & Mahindra, Eicher Motors, New Holland, Volvo etc. The major conveyor belting customers are Cement, Steel, Fertilizers, Thermal Power Plants, mines and ports. MRF exports tyres and tubes through authorized agents representing countries such as USA, Canada, Mexico, Brazil, Chile, Australia, Philippines, Bangladesh, Sri Lanka, Korea, Egypt, Nigeria, South Africa, Ghana, Kenya, Mauritius, UAE, Afghanistan, Pakistan, Iran, Iraq, Syria, Bahrain, Qatar, Oman, Lebanon, Greece, Turkey, Malta, UK, Uzbekistan, etc. MRF exports conveyor belts to Australia, South Africa, Europe, Canada, Middle East, etc.

KRISTU JAYANTI COLLEGE

Page 97

AN ORGANIZATION STUDY : MRF

SWOT ANALYSIS

STRENGTHS MRF is a market leader in almost every segment in the tyre industry.

KRISTU JAYANTI COLLEGE

Page 98

AN ORGANIZATION STUDY : MRF


Unique Brand Name

Locally available raw material

Strong and efficient channel of distribution- has a wide range of sales offices for each zone

Experienced work force

Regular training for employees

Optimum capacity utilization

Quality control

Adoption of latest concepts and technology

Environmental Certification

Satisfied customers

Highly evolved R&D

KRISTU JAYANTI COLLEGE

Page 99

AN ORGANIZATION STUDY : MRF

WEAKNESS Marketing department is only at the Corporate Office.

Less interaction between the Marketing and the Manufacturing department

Less aggressiveness among workmen at the plants

High rate of absenteeism

Lack of commitment

Union problems

Lack of transportation facility for employees

OPPORTUNITIES The company maintains global standards to face global competition

Making tie ups with the new automobiles entering the Indian industry

KRISTU JAYANTI COLLEGE

Page 100

AN ORGANIZATION STUDY : MRF


Availability of funds for up gradation of technology

Enhancement in technology thereby quality

Modernization of tubeless tyre Product enhancement with natural and synthetic rubber

Hiring new talents

THREATS Cut throat competition

Cheap import from China and Korea

Entrance of new foreign players

Fluctuation in the prices of raw material both rubber and petroleum

Use of second hand tyres

Changing Technology

KRISTU JAYANTI COLLEGE

Page 101

AN ORGANIZATION STUDY : MRF

KRISTU JAYANTI COLLEGE

Page 102

AN ORGANIZATION STUDY : MRF

FINDINGS AND SUGGESTIONS

FINDINGS

MRF Ltd. is the No.1 tyre manufacturer in the country and the 13th largest in the world

MRF exports its products to 75countries in the world

Policies, strategies and procedures are satisfactory and transparent

Conducive work atmosphere

A level of harmony between management and its employees

KRISTU JAYANTI COLLEGE

Page 103

AN ORGANIZATION STUDY : MRF


Well defined and practiced safety and security policy

Environmental and Quality standards with awards for recognition

Updated technology and concepts

Training and development programs conducted as per the needs

Effective plant maintenance

Satisfied employees and customers

SUGGESIONS Care should be taken during recruitment of employees. Only those people who really need a job should be selected, as motivation to work is very essential.

KRISTU JAYANTI COLLEGE

Page 104

AN ORGANIZATION STUDY : MRF


Employees should be made more aggressive, they should be induced with a healthy competitive spirit for better performance

There should be performance appraisal for employees in order to formulate proper promotion policies

Ensure more coordination and interaction between marketing and manufacturing departments

Further improvement in quality and standards of tyre to face global competition

Avoid outside leadership and influence for unions

Transportation facility for employees

Invest more in R&D

More attractive advertisements through media like TV, newspapers etc is recommended

The company website should be modified and updated regularly

KRISTU JAYANTI COLLEGE

Page 105

AN ORGANIZATION STUDY : MRF

CONCLUSION

KRISTU JAYANTI COLLEGE

Page 106

AN ORGANIZATION STUDY : MRF

In spite of cut throat competition in the tyre market segment, MRF has emerged as a market leader. The company has considerable lead over its rivals in the tyre market but has stiff competition from both local and global players. The company`s thrust on increasing exports will boost up its growth to a great extent. The outstanding performance of MRF is a combination of high growth in sales along with enhanced operations management and significant cost saving measures. MRF tries to provide high quality and technology superior products to its customers.

MRF Kottayam is one of the six production facilities in India. It has an ideal location due to the easy availability of natural rubber the main raw material of the tyre industry. The plant working 24 hours a day has specialized plant for production of various products. The work runs smooth with no outside interference. Each department in the company plays an important role

KRISTU JAYANTI COLLEGE

Page 107

AN ORGANIZATION STUDY : MRF

BIBLIOGRAPHY

KRISTU JAYANTI COLLEGE

Page 108

AN ORGANIZATION STUDY : MRF

Bibliography

MRF Manuals

MRF Annual Report

Previous Project Reports

International Rubber Journal

www.mrftyres.com

www.mrf-exports.com

http://www.dalalstreetjournal.com/PublicationDetails.asp

http://www.prlog.org/10083560-report-on-indian-tyre-industry.html

KRISTU JAYANTI COLLEGE

Page 109

Potrebbero piacerti anche