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Project Report Submitted To ASHOK LEYLAND, ALWAR (HINDUJA GROUP) For the fulfillment of summer training
Under the
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EXECUTIVE SUMMARY
My idea with this report is to make everything as simple as possible and somewhere I had not deal with all the detailed parameters .The report is completed with the best of all the knowledge gathered during this summer internship period The report in general brief about the ASHO !"#!A$%& as a company which was important to know. 'eing one the leading manufacturing company& different philosophies were practiced which are briefed here. In addition what different products are being manufactured and no of plant in India. As far as pro(ect is concerned& procurement department personnel shared their views and skills to know how ASHO !"#!A$% is doing material planning. )egarding supply chain they want me to visit their subsidiary in person and to know what they supply. At last& there were some findings and suggestions. I hope in future many discussions will be easier from this and I am really grateful to everybody who had helped me to understand the whole production and logistics.
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INTRODUCTION
Ashok !eyland is a well known automobile manufacturing company in India. Ashok !eyland believes that its historical success and future prospects are directly related to combination of strengths. This pro(ect is titled as a study on *urchase department in Ashok !eyland and tries to find out the different aspects of manufacturing process in the company. The pro(ect was held at Alwar ?)a(.@& from - May to 4= 5une /==<. %ifferent officials working in *urchase departments have provided very important data in this report. "very effort has been made to understand the functions and activities of *urchase departments.
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ABSTRACT
The report provides a consolidated preview of the * u r c h a s e activities of Ashok !eyland& A l w a r 2nit .The referred unit is a core limb of Ashok !eyland& the nationAs pioneering automobile manufacturer. The core departments& their primary functions are described in the report. Other special regulatory functions like evaluation methods& employee benefit schemes have also been covered. The have aided the company in carving an eBcellent niche for itself in the national and the international uniCue features and policies of the company& which make it a leader without contention and arena& have also been referred.
To familiariEe with business organiEation. ,etting practical eBperience regarding the organiEational function. To learn about the policies and functions of the organiEation. To understand the culture in the organiEation and its effect on employees. To get industrial eBposure and eBperience. To understand the production and marketing methods.
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METHODOLOGY
This study was undertaken by undergoing a training program at Ashok !eyland for a b o u t a f o r t n i g h t . functional departments. The methodology used for the study is through the collection of primary and secondary data. *rimary data is collected through direct observation and live discussion w ith the managers a nd the staff members . Secondary da t a is collected through Annual )eports& 'usiness 5ournals& and "Bisting )ecords and also from the website of the company. The i n f o r m a t i o n w a s c o l l e c t e d b y i n t e r a c t i n g a n d interviewing with the concerned personnel of various
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COMPANY PROFILE
Ashok !eyland has been a ma(or presence in IndiaAs commercial vehicle industry since -<6:& the year it was born. The origin of Ashok !eyland can be traced to the urge for selfFreliance& felt by independent India. *andit 5awaharlal $ehru& IndiaGs first *rime Minister persuaded Mr. )aghunandan Saran& an industrialist& to enter automotive manufacture. They are one of the IndiaAs leading manufactures of commercial vehicles and special vehicles& engines for industrial purpose& gen sets and marine reCuirement eCuipments. .or over five decades& Ashok !eyland has been the technology leader in IndiaAs commercial vehicle industry& molding the countryAs commercial vehicle profile by introducing technologies and product ideas that have gone on to become industry norms. Ashok !eyland at the time of its inception was known as Ashok Motors. It was assembling Austin cars at the first plant& at "nnore& near +hennai. In -<7=& the company started assembly of !eyland commercial vehicles and soon the local manufacturing under license from 'ritish !eyland& participation in the eCuity capital& in -<76& the company was re christened Ashok !eyland. Since its inception& Ashok !eyland has been a ma(or presence and these years have been punctuated by a number of technological innovations which went to become industry standard. This tradition of technological innovations and leadership was achieved through years of vigorous inFhouse research and development.
.rom -: seater to :/ seater doubleFdecker buses& from 9.7 tonne to 6< tonne in
SUMMER PROJECT REPORT- RAHUL UBANA MBA- 2011 Page
haulage vehicles& from numerous special application vehicles to diesel engines for Industrial& marine and genset applications& Ashok !eyland offers a wide range of products. Ashok !eyland has siB manufacturing plants F "nnore *lant& +hennai. Hosur *lants 2nit I& 2nit II and 2nit II A. Alwa , Ra!a"#$a%&
'handara& Maharashtra. A new plant is to be set to be launched in 2ttaranchal at *ant $agar with a plant capacity of 6=&=== commercial vehicles. "arly products of Ashok !eyland included the !eyland +omet bus chassis sold to many operators including Hyderabad )oad Transport& Ahmedabad Municipality& Travancore State Transport& 'ombay State Transport and %elhi )oad Transport Authority. In the popular metro cities& four out of five state transport undertaking buses come from Ashok !eyland. Some of them like the %ouble %ecker and 3estibule buses are uniCue models from Ashok !eyland& tailor made highFdensity routes. Statistics reveal that the company is IndiaAs largest eBporter of medium and heavy duty trucks. It sells close to :4&=== medium and heavy vehicles each year. The company has a near <:.7H market share in the Marine %iesel engine markets in India. At 8= million passengers a day& Ashok !eyland buses carry more people than the entire Indian )ailway network.
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ORGANI'ATION STRUCTURE
In
I$T")$ATIO$A! HO!%I$,S !IMIT"%@ was taken over by a (oint venture between the Hindu(a group& the $on )esident Indian Transnational group and I3"+O .iat S*A part of the .iat group and "uropeAs leading truck manufacturing company. Ashok * Hindu(a is the chairman of the company. The Hindu(a group also a s s o c i a t e d w i t h " n n o r e . o u n d r i e s ! i m i t e d & A u t o m o t i v e + o a c h e s a n d +omponents !imited& and ,ulf Ashley Motors !imited. The subsidiary holdings are Ashley Holdings !td.& Ashley Investment !td.& and Ashok !eyland *ro(ect Services. The chief competitors of the company areI
$omp(ny S()es #Rs mi))ion% (t( Motors AshoLey)(nd Ei*her Motors 2or*e Motors S0(r(3 M(4d( Ei*her Ltd. 257 34. 00 60 84.2 7 3750. 0 7505.06 5408.52 0.00 $urrent "ri*e $h(n+e ",E R(tio M(r-et *(p. #Mi))ion% 748.00 60.35 827.15 35 .75 2 .40 0.6 0.58 0.38 5. 3 -0.53 0.00 17.27 1 .12 82.86 7.4 28.40 .04 386 25.8 5 81017.60 3363 .4 4525.3 4455.82 2836.66 ./ 0ee-s Hi+h1)o0 882!254 70!28 885!270 416! 2 321!175 0!0
254.60
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0ith a commanding strength of the about -/&=== employees the company is looking forwards to enhance the scope of its action. It is aiming at eBpanding its production operation overseas to make it a more globally accessible company. It is looking to acCuire a small to medium siEed commercial vehicle manufacturers in +hina and other developing nations& which have an established product line. An eBample would be the /==9 acCuisition of the +Eech based AviaAs truck business rechristened Avia Ashok !eyland Motors.
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VISION
'e among the top Indian corporations acknowledged nationally and internationally for F F F "Bcellence in Cuality of its products. "Bcellence in customer focus and service.
MISSION
'e a leader in the business of commercial vehicles& eBcelling in technology& Cuality and value to customer fully supported by customer service of the highest order and meeting national and international environmental and safety standards.
GEMBA
,emba is a 5apanese word meaning J)eal *laceK where the real action takes place. In the manufacturing industry& there are 4 ma(or activities directly related to earning money& developing& producing and selling products.
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GEMBA KAI'EN
Three ground rules for practicing kaiEen in ,emba. -. House eeping /. Muda "limination L0aste "liminationM 0aste of over production 0aste of inventory 0aste of waiting 0aste of Motion 0aste of transportation 0aste of *roducing )e(ects 0aste of processing
4. StandardiEation.
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VENDOR OPPORTUNITIES
Our 3endors are our valued partners in our business development and we shall work with them in a spirit of mutual coFoperation to meet our business ob(ectives. 3endor %evelopment and Strategic Sourcing are handled by +orporate Materials %epartment ?+M%@. +M% identifies the vendors& rates the vendors based on feedback received from Supplier >uality Assurance +ell& sends drawings O specifications& calls for Cuotes with detailed breakFup of operationFwise costs& and negotiates the price at which the parts will be supplied. In addition to +M% at "nnore& and the two 2nits at Hosur& there are Materials Management %epartments ?MM%s@ for scheduling based on unit production plan.
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Ashok !eyland has a tieFup with 'ITS& *ilani for a customFdesigned& offFcampus /Fyear MS course in "ngineering Management. Aimed at making Managers out of "ngineers& assignments and pro(ects are central to the learning process thus bridging the classroom with the engineersG workplace. .rom /===& a 'S programme in Industrial "ngineering and Technology& is offered for diploma holders& again in collaboration with 'ITS. Apart from updating their knowledge base& the programme empowers engineers to acCuire multiple skills. Ashok !eyland is one of the moving forces behind an M.Tech course in Automobile "ngine Technology (ointly managed by the automobile industry ?Indian Society for Automotive Technology& made up of auto manufacturers@& IIT& Madras and Institute .ranPois du *etrol& the .rench institute for I+ engines.
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ORGANISATION STRUCTIURE
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SUMMER PROJECT REPORT- RAHUL UBANA MBA- 2011 Page 17
DEPARTMENT FUNCTIONS
The ma(or functional areas of the unit and the ma(or departments which oversee those areas are catalogued as followsD
-. *ersonnel and Administration %epartment /. *urchase Q Material *lanning %epartment 4. *roduction %epartment 6. .inance %epartment 7. Systems %epartment 8. )esearch Q %evelopment.
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RECRUITM ENT
)ecruitment applicants is the process of Rfinding and attracting capable for employment. The process begins when new recruits are
sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected.
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TRAINING
Training is an onFgoing process aimed at capabilityFbuilding of the employees at all levels. Training programme is classified into Skills nowledge 'ehavior
DEVELOPMENT ACTIVITIES
The following are the developmental activitiesD T"I S Total "mployee Involvement +., S +ross .unctional ,roup >+ S >uality +ontrol SS S Suggestion Scheme
PERFORMANCE APPRAISAL
R*erformance appraisal is an ob(ective assessment of an individualAs performance against well defined benchmarksA. The performance appraisal method followed is based on the Superior S subordinate relationship& whereby the superiors rate their subordinates. They are rated on the basis of their performance.
JIT
It is an approach than seeks to eliminate all source of waste in production activities by providing the right part at the right place at right time .5IT encompasis the successful eBecution of all manufacturing activity reCuired to produce a final product from design to delivery and including all stages of conversion from raw materials onwards.
PURPOSE OF JIT
Fhave only the reCuired inventory need Fimprove Cuality to Eero defects Fto reduce lead time Fto incrementally revise the operations themselves and to accomplish these things at minimum cost.
BILL OF MATEIALS
The parts Ocomponents reCuirements of the final product which is to be manufactured is usually presented in the form of a product structureObill of materials. it is a listing of all components that go into an assembled item. It freCuently includes the part number and Cuantity reCuired per assembly.
KANBAN
TThe kanban system is a signal proofing. the firm stores their materials and other inventory item in a signal use contains that holds a specific amounts of material or other inventory part that are used to manufacture the product. when the material in a container is depleted& a A$'A$ that defines reCuirements of inventory items to continue the production process is kept in the container.
CUSTOMER RETENTION4
It represents the activities that produce the necessary customer satisfaction that creates customer loyalty& which actually improves the bottom line. It moves +ustomer satisfaction to the neBt level by determining what is truly important to the customers and making sure that the customer satisfaction system focuses valuable resources things that really matter to the customer. It is the connection between customer satisfaction and the bottom line.
0M+ F 0orks Made Items +osting 3+S F 3ehicle +osting System S+! F Sub +ontract !edger )M,* S )eturnable Material ,ate pass $)M,* S $on )M,* ,+S S ,auge +alibration System +.S S +hassis .inal Specification !TMS S !ean Tool Management System AMTF automated manual transmission
-<88 S .ull air brakes introduced -<89 S %ouble %ecker buses introduced. -<8: S *ower steering offered. -<9< S Multilane trucks introduced. -<:= S Integral bus with air suspension. -<</ S SelfFcertification status for defense supplies. -<<4 S ISO <=== +ertification. -<<6 S ISO <==- +ertification -<<9 S IndiaAs first +$, powered bus. -<<: S >S <=== +ertification -<<< S +$, ?+ompressed $atural ,as@ introduced. /=== S "uroFI& "nginesOvehicles introduced. /==- S ISO -6=== "nvironment Management System +ertification. /==/ S "Bclusive Machine line S / for Hino cylinder. /==4 S "F+omet launched. /==6 S 7=&=== mark vehicle produced. /=-=F 0A'+O will supply Ashok !eyland with its new Opti%riveU modular AMT system
PRODUCT PROFILE
Ashok !eyland offers a comprehensive product range with trucks from 9.7 tons ,30 to -/7 tons ,30. .rom -< to := seaters a host of special application vehicles and diesel engines from industrial gensets and marine application. *roduct profile can be broadly split into siB categories viE. passenger& goods& cargo& heavies& special 3ehicles and "ngines.
PASSENGER
I+3 +heetah )ear "ngine 'us +ruiser Super 3iking 3iking Hino 3estibule 'us +$, 'us %ouble %ecker MO3 3iking A! *anther 3iking
GOODS
Haulage Tipper +omet /8-6 +omet Taurus 816 'ison Tractor
CARGO
!+3 +argo -8-6 Haulage Tipper +argo <=<
PRABHA ENGINEERING
;..I)ST!# S+H"%2!" IS *)"*A)"% '# ASHO !"#!A$% A$% IT IS S"$T TO S2**!I")S. <&TH"$ A++O)%I$, TO S+H"%2!" MAT")IA! *!A$$I$, IS %O$". =.THIS S+H"%2!" IS O$ MO$TH O0"" 'ASIS A$% IS .2)TH") +HA$,"% TO %A# 'ASIS
SAS AUTOCAM
;.MAT")IA! S+H"%2!" IS *)"*A)"% '# ASHO !"#!A$% AS MAT")IA! )"!"AS" M"MO. <.MAT")IA! *!A$$I$, IS %O$" A++O)%I$,!# O$ MO$THO0"" 'ASIS.
"AR
N5.
'ES$RI" I5N
6UL789: SHE'ULE
0 450 150 0 0 650 0 0 0 0 500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 700 1250
B6603707 B2230504 1233 mm B2235701 B2235702 B2239902 B2246601 B2247102 B2250304 B2250305 B2254210 B2254212 B2254216 B2254217 B2401501 B2401502 B2401503 B2401504 B3631401 B4306701 B4364250 B4408805 B4408806 B4465201 B4465601 B6603201 B6603202 B6603208 B6603209
C"#$. "%&'e& P($e S&ee)(*g P($e H+,. P($e S&ee)(*g $($e S&ee)(*g $($e S&ee)(*g P($e S&ee)(*g P($e H+,)a%'(- $($e S&ee)(*g P($e S&ee)(*g P($e S!A ". /()0& A() P($e H+,)a%'(- P($e H+,)a%'(- P($e H+,)a%'(- P($e L+*1 S&ee)(*g P($e L+*1 S&ee)(*g P($e L+*1 S&ee)(*g P($e L+*1 S&ee)(*g P($e S!A ". A() P($e-4 21 S!A ". Se-. P($e-4018 S!A ". A(). P($e-/a'-"* B%*,+ P($e - 2516 T($$e) B%*,+ P($e - 2516 T($$e) P($e 2516 -T($$e) S!A ". A(). P($e-/a'-"* S!A ". /()0& P($e- H"0e &" U*("* S!A ". T2(), P($e- U*("* &" U*("* Se-"*, A() P($e T2(), A() C"#$. P($e
SURIN
S2**!I") O. S ;&ENGINE COWL(INSIDE COVER HOOD) <&ULE ROOF AND BODY PARTS&
-.MAT")IA! S+H"%2!" )"+"I3"% .)OM ASHO !"#!A$%. <.MAT")IA! *!A$$I$, %O$" A++O)%I$,!#. = MO%"!S S +H""TAH "2)OIII 3I I$,
A!AD*2)DS.D
22.06.2010 M>" Sa%*$a E.a1l A** )"" 4 "a%*))-&?3.a @"l*l&2+. A "-?@"l*l&2+. Kind Attn: Mr. Sandeep
Our confirm reCuirement for the month of 5ulyA-= and Tentative reCuirement for the month of AugA-= is as given below. S. No. "(rt No. 1 F8254500
F8068100
Lh - 3500
7000
1600
#ou are reCuested to arrange to dispatch material as per following weekly plan. S No "(rt No. 1 2 F8254500 6u)y89 : ;<9 ;</ ;<> ;<? 1600 400 400 400 400
GM-MATERIALS
FINDINGS
-. In this organiEation there is no fleBible manufacturing system. /. There is no effective utiliEation of Human )esources.
4. To solve their work related problems >++ ?>uality +ontrol +ircle@ and cross f un c t io na l tea m a re m a de e ff e c t iv e . 0ork ins tr uc ti on s & s t a n d a r d operating procedures& inspection reports& >+ chart are effective.
SUGGESTIONS
-. The company should earmark more money for the advertisement and sales promotion of its products. image. /. The company should concentrate on markets in the international arena where its competitors are less powerful. 4. +omplaints should be rectified in the shortest possible time. .or this a customer satisfaction cell should be organiEed It helps to increase the brand awareness and
CONCLUSION
Ashok !eyland is a well known automobile manufacturing company
in India. In Alwar there is a well planned organiEation structure being followed. There is a well integration of all the functional departments
which facilitates the use of software like ")*. )etention of the talented people is essential as they contribute a lot to success of the organiEation. The catalogued training programme and the resulted report have been of great help to me& an aspirant manager& to understand the functioning of a ma(or establishment like Ashok !eyland. unit. The training programme has also revealed m a n y unknown facts about the working of a manufacturing
BIBLIOGRAPHY -. !ogistics and supply chain managementF 'y Martin +hristopher /. +ompany Manual& Ashok !eyland !td.&Alwar 4. Supply Chain ManagementD Strategy& *lanning and operations by Sunil Chopra ,
Peter Meindl, D. . Kalra published by *earson "ducation&Inc.&/==8