INTRODUCTION

Ashok Leyland is a well known automobile manufacturing company in India. Ashok Leyland believe that its historical success and future prospects are directly related to combination of strengths. This project is titled as a study on functional areas in Ashok Leyland and tries to find out the different aspects of manufacturing process in the company. The project was held at Hosur, nit I from !! to "# $une !##%. &ifferent officials working in various departments have provided very important data in this report. 'very effort has been made to understand the functions and activities of various departments as well as the manufacturing process.

ABSTRACT

The report provides a consolidated preview of the functional activities of Ashok Leyland, Hosur nit I.The referred unit is a core limb of Ashok Leyland,the nation)s pioneering automobile manufacturer.The core departments, their primary functions and the integrating activities are described in the report. *ther special regulatory functions like evaluation methods, employee benefit schemes have also been covered.

The uni+ue features and policies of the company, which make it a leader without contention and have aided the company in carving an e,cellent niche for itself in the national and the international arena, have also been referred.

OBJECTIVES OF THE STUDY

The objectives of the study are To familiari.e with business organi.ation. /etting practical e,perience regarding the organi.ational function. To learn about the policies and functions of the organi.ation. To understand the culture in the organi.ation and its effect on employees. To get industrial e,posure and e,perience. To understand the production and marketing methods.

METHODOLOGY
This study was undertaken by undergoing a training program at Ashok Leyland for about a fortnight. The information was collected by interacting and interviewing with the concerned personnel of various functional departments. The methodology used for the study is through the collection of primary and secondary data. 0rimary data is collected through direct observation and live discussion with the managers and the staff members. 1econdary data is collected through Annual 2eports, 3usiness $ournals, ',isting 2ecords and also from the website of the company.

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SCOPE OF THE STUDY

The study is mainly based on the details collected from each department. It provides a better understanding at functional level of each department. It provides a better understanding at functional level of each department i.e. 0urchase, 4aterials, 0roduction, 4arketing, 5inance and Human 2esource 4anagement. 'ach and every activity of the company has been studied very carefully with the data available. Apart from that I gained knowledge of the functioning of different departments and their inter relationship with each other. This study helped me familiari.e with the manufacturing and assembling of commercial vehicles.

COMPANY PROFILE
Ashok Leyland has been a major presence in India)s commercial vehicle industry since (%67, the year it was born. The origin of Ashok Leyland can be traced to the urge for self8reliance, felt by independent India. 0andit $awaharlal 9ehru, India:s first 0rime 4inister persuaded 4r. 2aghunandan 1aran, an industrialist, to enter automotive manufacture. They are one of the India)s leading manufactures of commercial vehicles and special vehicles, engines for industrial purpose, gen sets and marine re+uirement e+uipments. 5or over five decades, Ashok Leyland has been the technology leader in India)s commercial vehicle industry, molding the country)s commercial vehicle profile by introducing technologies and product ideas that have gone on to become industry norms. Ashok Leyland at the time of its inception was known as Ashok 4otors. It was assembling Austin cars at the first plant, at 'nnore, near ;hennai. In (%<#, the company started assembly of Leyland commercial vehicles and soon the local manufacturing under license from 3ritish Leyland, participation in the e+uity capital, in (%<6, the company was re christened Ashok Leyland. 1ince its inception, Ashok Leyland has been a major presence and these years have been punctuated by a number of technological innovations which went to become industry standard. This tradition of technological innovations and leadership was achieved through years of vigorous in8house research and development. 5rom (7 seater to 7! seater double8decker buses, from =.< tonne to 6% tonne in haulage vehicles, from numerous special application vehicles to diesel engines for
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industrial, marine and genset applications, Ashok Leyland offers a wide range of products. Ashok Leyland has si, manufacturing plants 8 'nnore 0lant, ;hennai. Hosur 0lants nit I, nit II and nit II A. Alwar, 2ajasthan. 3handara, 4aharashtra. A new plant is to be set to be launched in ttaranchal at 0ant 9agar with a plant

capacity of 6#,### commercial vehicles. 'arly products of Ashok Leyland included the Leyland ;omet bus chassis sold to many operators including Hyderabad 2oad Transport, Ahmedabad 4unicipality, Travancore 1tate Transport, 3ombay 1tate Transport and &elhi 2oad Transport Authority. In the popular metro cities, four out of five state transport undertaking buses come from Ashok Leyland. 1ome of them like the &ouble &ecker and >estibule buses are uni+ue models from Ashok Leyland, tailor made high8density routes. 1tatistics reveal that the company is India)s largest e,porter of medium and heavy duty trucks. It sells close to 7",### medium and heavy vehicles each year. The company has a near %7.<? market share in the 4arine &iesel engine markets in India. At @# million passengers a day, Ashok Leyland buses carry more people than the entire Indian 2ailway network.

ORGANIZATION STRUCTURE
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In (%7= the overseas holding by L2LIH ALA9& 2*>'2 L'BLA9& I9T'29ATI*9AL H*L&I9/1 LI4IT'&C was taken over by a joint venture between the Hinduja group, the 9on 2esident Indian Transnational group and I>';* 5iat 10A part of the 5iat group and 'urope)s leading truck manufacturing company. Ashok 0 Hinduja is the chairman of the company. The Hinduja group also associated with 'nnore 5oundries Limited, Automotive ;oaches and ;omponents Limited, and /ulf Ashley 4otors Limited. The subsidiary holdings are Ashley Holdings Ltd., Ashley Investment Ltd., and Ashok Leyland 0roject 1ervices. The chief competitors of the company areD 4ahindra >olvo Tata 4otors Eith a commanding strength of the about (!,### employees the company is looking forwards to enhance the s,ope of its action. It is aiming at e,panding its production operation overseas to make it a more globally accessible company. It is looking to ac+uire a small to medium si.ed commercial vehicle manufacturers in ;hina and other developing nations, which have an established product line. An e,ample would be the !##= ac+uisition of the ;.ech based Avia)s truck business rechristened Avia Ashok Leyland 4otors.

VISION

3e among the top Indian corporations acknowledged nationally and internationally for 8 8 8 ',cellence in +uality of its products. ',cellence in customer focus and service.

MISSION

3e a leader in the business of commercial vehicles,e,celling in technology, +uality 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 $apanese word meaning F2eal 0laceG where the real action takes place. In the manufacturing industry, there are " major activities directly related to earning money, developing, producing and selling products.

GEMBA KAIZEN

Three ground rules for practicing kai.en in /emba. (. House Heeping !. 4uda 'limination IEaste 'liminationJ Easte of over production Easte of inventory Easte of waiting Easte of 4otion Easte of transportation Easte of 0roducing 2ejects Easte of processing
". 1tandardi.ation.

GEMBA MISSION 97iK( 9ew = initiatives

(. Increase in the number of /'43A !. <s I1'I2I,1'IT*9,1'I1*.1'IH'T1 ,1HIT1 H'J ". ''I A'ffort and 'rgonomy inde,C 6. ;4I A;ost management initiativeC <. Inventory Initiative @. ;ritical machine uptime =. Luality 7. 1afety

Vendor Oppor !n" "e#$

*ur >endors are our valued partners in our business development and we shall work with them in a spirit of mutual co8operation to meet our business objectives. >endor &evelopment and 1trategic 1ourcing are handled by ;orporate 4aterials &epartment A;4&C. ;4& identifies the vendors, rates the vendors based on feedback received from 1upplier Luality Assurance ;ell, sends drawings M specifications, calls for +uotes with detailed break8up of operation8wise costs, and negotiates the price at which the parts will be supplied. In addition to ;4& at 'nnore, and the two nits at Hosur, there are 4aterials

4anagement &epartments A44&sC for scheduling based on unit production plan.

Vendor De%e&op'en o( S r) e*"+ So!r+e#$

1trategic 1ourcing is central to the integrated 4aterials 4anagement function. Ashok Leyland:s policy is to develop a vendor base committed to continuous improvement to meet +uality, cost and delivery standards. Ashok Leyland considers its vendors as p)r ner# "n pro*re## and believes in establishing mutually beneficial relationships. Ashok Leyland provides necessary technical assistance in the form of 0roject and 0roduction 'ngineering, to maintain +uality levels. In addition, where re+uired, Ashok Leyland also helps vendors financially.

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Ashok Leyland has a tie8up with 3IT1, 0ilani for a custom8designed, off8campus !8year 41 course in 'ngineering 4anagement. Aimed at making 4anagers out of 'ngineers, assignments and projects are central to the learning process thus bridging the classroom with the engineers: workplace. 5rom !###, a 31 programme in Industrial 'ngineering and Technology, is offered for diploma holders, again in collaboration with 3IT1. Apart from updating their knowledge base, the programme empowers engineers to ac+uire multiple skills. Ashok Leyland is one of the moving forces behind an 4.Tech course in Automobile 'ngine Technology jointly managed by the automobile industry AIndian 1ociety for Automotive Technology, made up of auto manufacturersC, IIT, 4adras and Institut 5rancais du 0etrole, the 5rench institute for I; engines.

ORGANISATION STRUCTIURE
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DEPARTMENT FUNCTIONS

The major functional areas of the unit and the major departments which oversee those areas are catalogued as follows(. 0ersonnel and Administration &epartment !. 0urchase O 4aterial 0lanning &epartment ". 0roduction &epartment 6. 5inance &epartment <. 1ystems &epartment @. 2esearch O &evelopment. A brief review of each functional department and its activities as follows-

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PERSONNEL 0 ADMINISTRATION Dep)r 'en )& S r!+ !re

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RECRUITMENT
2ecruitment is the process of Pfinding and attracting capable applicants 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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SOURCES OF RECRUITMENT
The following are various e,ternal sources of recruitment ;onsultancies ;ampus recruitment Lateral entries

12 CONSULTANCIES
The department heads where re+uirements are needed informs to the H2 department about the re+uirement. The concerned persons for recruitment gets approval for filling the vacancies. Then the consultancies are approached telling the re+uirements. The fit applications are mailed to attend the interview. If satisfied, they are called for the personal interview.

32 CAMPUS RECRUITMENT
The recruitment panel goes to the reputed colleges to select the candidates. *n the following basis they recruit the candidates /'Ts 8 /raduate 'ngineer Training &'Ts 8 &iploma 'ngineer Training ITI

42LATERAL ENTRIES
They pick the e,perience candidates or people from other companies. The following is the process of lateral entry recruitment(. 1ourcing

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!. Interview a. Eritten test b. Technical round interview c. 0ersonal Interview

TRAINING
Training is an on8going process aimed at capability8building of the employees at all levels. Training programme is classified into 1kills Hnowledge 3ehaviour

5ORKMEN CAPABILITY BUILDING

Training O &evelopment for the unioni.ed employees at the manufacturing units is focused on skill development. 3oth internal and e,ternal training is given for associates. /uest lectures of e,ternal faculty and various other industrial visits will be arranged for associates. In addition to some programmes like engineering drawing and waste elimination are also conducted.

TRAINING FOR SENIOR6 MIDDLE LEVEL MANAGEMENT

3oth e,ternal and internal training is given for the e,ecutives. 5aculty from outside agencies will be arranged for training them. They also get faculty from

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corporate level. Training for seniorMmiddle level management is done on the following basis(. Technical !. 3ehavioral ". 5unctional

DEVELOPMENT ACTIVITIES
The following are the developmental activities T'I Q Total 'mployee Involvement ;5/ Q ;ross 5unctional /roup L; Q Luality ;ontrol 11 Q 1uggestion 1cheme

EMPLOYEE RETENTION6INCENTIVES

Per(or')n+e &"n7ed p)The company has an annual appraisal system in place and pursuant to this system, performance linked pay, annual variable pay andMor commission is paid to the employees.

HR In" ") "%e#

There is a H2 initiative called F1''&G. In this, employees are welcomed to provide suggestions to improve +uality, performance, cost reduction, etc., If their suggestions are feasible, they are accepted and the others are rejected. A cash award, awards such as 2'1I, /'43A passport is given to them as a token of appreciation. This motivates people to contribute their ideas.
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E'p&o-ee 8e&()re #+9e'e#

The following are the welfare schemes available to the employees. ;anteen facilities 4edical claims Transport facilities Ashok leyland school for their children 1cholarship schemes 2ecreation facilities

PERFORMANCE APPRAISAL
P0erformance appraisal is an objective assessment of an individual)s performance against well defined benchmarks). The performance appraisal method followed is based on the 1uperior Q subordinate relationship, whereby the superiors rate their subordinates. They are rated on the basis of their performance.

CORPORATE SOCIAL RESPONSIBILITY

&onations ;areer guidance AI&1 awareness

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 /uest lectures for school and college students

PROMOTIONS
0romotions are given once in three years wherein there is elevation from one level to the other. They give promotions based on the "," matri,.

A" 3" ;" 0erformance

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SEPERATIONS
Ehen people leave the organi.ation, ',it interviews are usually conducted to know the reasons for leaving. The common reasons given are 3etter opportunities 5inancial problems Lack of growth $ob clarity

ATTRITION
Attrition rate is noted to be <.@? till &ecember !##7.

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PURCHASE 0 MATERIAL PLANNING

5or a manufacturing company to produce end items to meet demand the availablility of sufficient production capacity must be co8ordinated with the availability of raw materials and purchased items from which the end items are to be produced.the following are the system which are followed to procure materials8$IT 8L;L 8420 8>41 8HA93A9

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 .$IT encompasis the successful e,ecution of all manufacturing activity re+uired to produce a final product from design to delivery and including all stages of conversion from raw materials onwards.

PURPOSE OF JIT
8have only the re+uired inventory need 8improve +uality to .ero defect 8to reduce lead time

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 8to incrementally revise the operations themselves and to accomplish these things at minimum cost.

LO5 COST LOGISTICS :LCL;

L;L Includes materials such as bolts nuts etc. these are purchased in bulk and they are used for production. they don)t affect the inventory cost.

MATERIAL RE,UIREMENT PLANNING

4aterial is a techni+ue for determining the +uantity and timing for the ac+uisition of dependent items needed to satisfy master schedule re+uirements An alternative approach to managing dependent demand items is planned for 0rocurement or manufacture of the specific components that will be re+uired to produce the re+uired +uantities of end production schedule indicated by the master production schedule.

BILL OF MATEIALS
The parts Mcomponents re+uirements of the final product which is to be manufactured is usually presented in the form of a product structureMbill of materials. it is a listing of all components that go into an assembled item. It fre+uently includes the part number and +uantity re+uired per assembly.

KANBAN
The 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

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other inventory part that are used to manufacture the product. when the material in a container is depleted, a HA93A9 that defines re+uirements of inventory items to continue the production process is kept in the container.

PRODUCTION

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MACHINE SHOP I COMPONENTS MACHINED$

;ylinder block machining AAL8@7# 'ngineC block machining AH8series 'ngineC 2ocker level A2ocker arm actuating deviceC ;ylinder H8series camshaft machining H8series connecting rod machining H8series timing gear case machining H8series flywheel housing machining.

MACHINE SHOP<V COMPONENTS MACHINED$ BEARING CAP FOR H<SERIES$ Oper) "on# done$

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 2ough milling drilling arrow milling finish milling washing boring tapping end milling brushing of holes assembly of bearing caps injection flood washing leak test water ways counter boring,reaming

ENGINE ASSEMBLY II 0 V FI=ING OF CRANKSHAFT AND BEARING CAPS$

;2A9H1HA5T is attached with a gear and is fi,ed to the bottom of the cylinder block by bearing caps.

FI=ING OF CAMSHAFT
;A41HA5T is attached with a timing gear and is fi,ed in the re+uired space provided in the cylinder block

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 5i,ing of flywheel housing Assembly of oil sump 5itting of oil stainer 5i,ing of fuel injection pump 5i,ing of connecting rod and piston Assembly of inlet manifold 5i,ing if started motor 5i,ing of connecting rod with crankshaft 5i,ing of timing gear case ;ompressor fitting 5itting of cylinder head and rocker arm assembly 5itting of cylinder head cover 5itting of oil coolant Assembling of turbocharger or air fitter 5itting of atternator, fitting of belt.

MEDIUM DUTY VEHICLE:MDV; CATEGORY$

>ehicles which transport load in the range of (@ to "< tonnes 02*& ;TI*9 I9 4&> A11'43LBAH( 0LA9TC-66Mday ,!!Mshift

STAGES OF ASSEMBLY $

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5rame Assembly- <stages ;hassis Assembly- (" stages

FRAME ASSEMBLY$
STAGE 1- 4ounting of side members and cross members STAGE 3- 4ounting of 5ront 1pring8rear, 5ront 1pring8rear, 2ear spring8front, 2ear spring8middle, 2ear spring8rear. STAGE 4- 5itting of 'ngine mounting brackets and 5'1 mounting brackets STAGE >- 1ide members fastening to tor+ue limit, 1teering bo, bracket, 1ide 4embers reaming, 5ront tie channel mounting STAGE ?$ 5itment of 5'1 rear brackets, 1hock absorber brackets and Tor+ue checking PASSING STAGE- ;hecking and tilting

CHASSIS ASSEMBLY$
STAGE @- 2adiator mounting brackets, Air tank mounting , Air cleaner mounting bracket, battery mounting bracket, grease nipple fitment, 3ellcom lever mounting.

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STAGE 7- &; valve mounting, *il piping, ;lutch oil piping, Luick release valve mounting. STAGE A- 1pring fitment, frame punching STAGE B- 1ilencer fitment, first a,le mounting. STAGE 1C- 1econd a,le mounting, slack adjustment STAGE 11$ 5uel piping, Air piping, Air filter mounting, &iesel filter mounting, 1teering bo, mounting STAGE 13- 'ngine mounting, fuel tank mounting, &iesel filter mounting, 1teering bo, mounting STAGE 14$ 2adiator fitment, 2adiator supports tightening, 2ear lamps fitting,Turbocharger outlet pipe connection and 2adiator hose connections STAGE 1>- ',haust piping, 1hock absorber fitment Afront and rearC, 3attery mounting and connection of circuits, battery casing fitment and second propeller shaft mounting STAGE 1?- Tyre mounting, 4a,cut checking STAGE 1@- 5'1 mounting, 'lectric fitments Amale8female connecting processC STAGE 17$ 3umper fitment, 5'1 wiring, niversal joint A $C fitment with steering handle, A3; fitment and connecting STAGE 1A- /reasing of joints, nuts, etc., *ff track arrangements
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FES DRESSING$
5itting of seats, A3; pedals, steering handle and instrument bo, 'lectrical wiring 5link >alve 5itting.

PDI :PRE DELIVERY INSPECTION;$

Testing of vehicle on real road conditions The following are the various tests done to test the vehicle(. 1peed test !. Acceleration test ". >ibration test 6. Tor+ue tightening <. *il level and water level checking @. 'lectrical components checking =. Air leakage test 7. /rease level checking %. 0ower steering hose routing and clamping (#. 2oad test

,UALITY CONTROL ,UALITY$

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It is the degree to wish a set of inherent characteristics fulfills re+uirements. The following are the various dimensions of +uality. 0erformance 5eatures ;onformance 2eliability &urability 1ervice 2esponse Aesthetics 2eputation

T,M$
It is defined as both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organi.ation. It is the application of +uantitative methods and human resources to improve all the processes with an organi.ation and e,ceed customer needs now and in the future.

,UALITY POLICY$
Ashok Leyland is committed to achieve customer satisfaction by anticipating and delivering superior value to the customer in relation to their own business, through the products and services offered by the company and comply with statutory re+uirements.

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Towards this, the +uality policy of Ashok Leyland is to make continual improvements in the processes that constitute the +uality management system, to make them more robust and to enhance their effectiveness and efficiency in achieving stated objectives leading to (. 1uperior products manufactured as also services offered by the company. !. 4a,imum use of employees potential to contribute to +uality and environment by progressive up gradation of their knowledge and skills as appropriate to their functions. ". 1eamless involvement from suppliers and dealers in the mission of the company to address customers changing needs and protection of the environment.

OBJECTIVES OF ,C DEPARTMENT$
(. Identity the +uality level to meet drawing and specification re+uirements. !. 'stablish necessary infrastructure and system to carryout +uality planning, control and improvement activities. ". ',ercise necessary controls at all stages to ensure total conformance of product +uality to design specifications. 6. 'valuate product +uality in the light of performance and customer feedback to review and update +uality level, infrastructure and systems.

SYSTEM OF ACCEPTING PRODUCTS$ 12 ZERO DEFECT SAMPLING PLAN$

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Here, the defect level should be .ero, then accept the product. If there is one defect also they will reject the product.

32DOUBLE DEFECT SAMPLING PLAN$

Here, first one set of samples will be taken and if they find defect another set of samples will be taken if it goes beyond the fi,ed level then reject or else accept the products.

INSPECTION$
It is also to eliminate, substantially reduce or automate the inspection activity. There are 6 phases of inspection. (##? inspection 1ampling Audit Identity check

PURCHASED PRODUCTS VERIFICATION PROCESS

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RESPONSIBILITIES OF ,C DEPARTMENT
The +uality engineering dept is responsible for +uality of all products of Ashok Leyland, Hosur which is achieved byS (. 'nsuring the +uality of bought out machine >IT rough, semi8finished O finished. !. ',ercising controls on the processes clearing, manufacturing and assembling there by ensuring the +uality of the house made items. ". 'nsuring the +uality of the finished products prior to dispatch to the customers. 6. To provide support to the vendors to meet the +uality re+uirements and also guidelines for continuous improving.

The departments is also responsible for (. 0lanning and implementation of A0L0;0 O 00A0 procedures to meet T1(@%6% re+uirements. !. Training in +uality engineering and +uality control techni+ue to all dept of Ashok Leyland, Hosur. ". 4onitoring +uality level of F.ero kilometerG failures and field performance for improvements

BENCHMARKING$
3enchmarking is the systematic search for best practices, innovative ideas, and highly effective operating procedures. 3enchmarking considers the e,perience

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of others and uses it. It promotes superior performance by providing an organi.ed framework through which organi.ations learn how the F 3est in class G do things, understand how these best practices differ from their own and implement change to close the gap.

LEVELS OF BENCHMARKING$
(. ;ontempary level !. High level.

PROCESS OF BENCHMARKING$
The following si, steps are followed to benchmark (. &ecide what to benchmark !. nderstand current performance ". 0lan 6. 1tudy others <. Learn from the data @. se the findings.

CONTINOUS PROCESS IMPROVEMENT$

Luality based organi.ations should strive to achieve perfection by continuously improving the business and production processes.

CUSTOMER RETENTION$
It represents the activities that produce the necessary customer satisfaction that creates customer loyalty, which actually improves the bottom line. It moves

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customer satisfaction to the ne,t 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.

5AYS TO RETAIN CUSTOMERS$

The following are the various ways followed here to retain their customers (. Earranty e,penditure measure !. &ealers conference ". ;ustomer visits 6. 4onthly plant +uality review

FEEDBACK FROM CUSTOMERS$

5eedback is collected from the customers regarding +uality through the following ways. ;ustomer visits Toll8free telephone number ;omment card 2eport card

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PLANT ENGINEERING
0lant engineering is responsible for proper functioning of the plant by carrying out maintenance operations such as electrical and electronics e+uipments maintenance, fork lift charging and its repairing, repairing of pneumatic circuits etc.. It is also responsible for maintenance works carried out in the organisation. The following are the various types of maintenance 0redictive maintenance 0reventive maintenance 3reakdown maintenance 2outine maintenance

12 PREDICTIVE MAINTENANCE$
0redictive maintenance is done on assumption by e,perience before the occurring or by any symptoms of occurring.

32 PREVENTIVE MAINTENANCE$

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0reventive maintenance is done before the accident occurs, they will take actions to prevent them.

42 BREAKDO5N MAINTENANCE$
3reakdown maintenance is done after the accident occurs. Actions will be taken only after the occurrence

>2 ROUTINE MAINTENANCE$

2outine maintenance is done on even time or on routine basis. It is generally carried out without affecting the productivity.

DIVISIONS$
0lant engineering is divided into 6 divisions to carry out its functions. The following are divisions of plant engineering 'lectrical 4echanical /E'A/eneral Eorks 'ngineeringC ;ivil

PERIOD OF MAINTENANCE$
0eriod of maintenance is done on the basis of >'& analysis. It is also known as time based maintenance. Here >'& stands for > 8 >ital ' 8 'ssential & Q &esirable
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ANALYSIS >8 >ital '8 'ssential &8 &esirable

DURATION @ months % months *nce in a year

PEP$ < PRODUCTION ENGINEERING 0 PROJECTS

0'0 department works as a bridge between 2 O & and 4anufacturing

&epartment. The 2 O & designs and if the testing is successfully achieved it is transferred to 0'0.

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(. &eciding and releasings of 4AH' *2 3 B &';I1I*9 A&>I;' A 43&AC for new components. If bought from supplier that may beD 3*2 A3ought out 2oughC Q need further processing. 3*15 A 3ought out 1emi 5inished C Q need further prosessing. 3*5 A3ough out 5inishC Q ready for assembly. 3*2 O 3*15 are chosen to maintain +uality standards, core competency, improve efficiency, and to enjoy cost benefits. !. Laying down the 0rocess and 1election of 4achines. ". &esigning new tools for inhouse components
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6. *rganising and ;onducting assembly trials. <. ;ontinuous improvements towards +uality and productivity @. Analysis of processes and layouts =. 0rogressing of new projects to bridge between 2 O & and manufacturing.

IED . Ind!# r")& En*"neer"n* Dep)r 'en 2

This is closely related to 0'0 department. They work as a single wing.

2'10*91I3ILITI'1 *5 I'&
(. &ecide on capacity planning. !. 4anpower capacity O 2e+uirement.
". 4achine capacity and running time

6. *perating time. <. 5rame performance inde, for incentive. @. 5rame the work instruction sheet, process sheet. =. 0rocessing 54'A for assembly vehicle

STORES AND LOGISTICS

There are 1tores meant for both >ehicle assembly and 'ngine Assembly. >ehicle part number and engine part number are framed for identification. ! bin system are practiced. &espatching of finished vehicle and semi finished engine are processed every morning.

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/oods 2eceipt 9ote A/29C is the vital documents re+uired for inspection. T>1 Logistics are the group who supply the internal components. All the dispatching and supply schedules are accessed from '20 both by ;ompany Logistics and T>1 Logistics. As a cost beneficial measure for the ;ompany and 1upplier , the godowns of the supplier are located nearby for easy delivery and enhances the efficiency of $IT.

FINANCE FINANCE FUNCTIONS$

(C Investment decisions !C 5inancing decisions "C &ividend decisions 6C Li+uidity functions

ROLE OF FINANCIAL MANAGER$

(C 5unds raising !C 5unds allocation "C 0rofit planning 6C nderstanding capital markets

SHAREHOLDING$
The following are the shareholders of Ashok Leyland Ltd <(? owned by Hinduja group (!? 8 (6? owned by public

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 2emaining shares are owned by various financial institutions

DIVIDEND POLICY$
The 3oard may, at its discretion, recommend dividends to be paid to the shareholders. /enerally, the factors that may be considered by the 3oard of &irectors before making any recommendations for the dividend include, without limitation, the future e,pansion 1plans and capital re+uirements, profits earned during the fiscal year, cost of raising funds from alternate sources ,li+uidity position, applicable ta,es including ta, on dividend, as well as e,emptions under ta, laws available to various categories of investors from time to time and general market conditions. The 3oard of &irectors may also from time to time pay interim dividends to the shareholders. &ividends, other than interim dividends, will be declared at the annual general meeting of the shareholders based on the recommendation of the 3oard of &irectors.

BUDGET$
The funds which are re+uired by the organisation are provided by the corporate office, ;hennai. These funds are allocated to the departments whenever there is re+uirement.

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ALLOCATION OF FUNDS$
5unds are allocated for various purposes of the departments. They allocate funds for day to day activities and also for various projects and also for special projects, they also allocate for payroll.

PAYROLL$
They use the customi.ed '20 to pay salary to the employees. 'very month on (#th salary is paid for the workers and on !7th salary is paid for the e,ecutives.

SYSTEMS

The systems department maintains and updates the software M data used in the unit. The department also maintains the intra network and also does the system maintenance. 1ystem is an orderly grouping of independent components linked together according to a plan to achieve a specific objective. 1ystem is a combination of resources working together to convert the input to useful output. The total arrangement of the re+uired entities takes place in this department.

A#9o7 Le-&)nd Ne 8or7 Conne+ "%" -

1upplier

Internet '99*2' Hosur8 unit I ;orporate

Hosur8 nit II 3handara

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AL 8 A ALEA2 4HT/ &;

ASHOK LEYLAND ERP< FAMILY MEMBERS$

AL4A08 4anufacturing AL4A2H8 4arketing AL5I98 5inance AL0AB8 0ayroll AL0418 0lant maintenance AL'418 'nvironmental management ALH28 Human resources AL;*208 ;orporate functions AL1;4 Q 1upply ;hain 4anagement AL0& Q 0roduct &evelopment AL902& Q 9on 0roduction ALI41 Q Information 4anagement 1ystems.
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HARD5ARE TECHNOLOGIES USED IN SYSTEMS$

U &ATA3A1' 1'2>'21 Q A"nosC R H082R7@6# Itanium 0rocessor A(." /H.C R (@ 0rocessors each R @6 /3 2A4 Atotal (%! /3C UA00LI;ATI*9 1'2>'2 A<nosC- 8 88;ompa+ Alpha 1erver8 model '16# R &ual 0rocessor R @ R %.# /3 of *1 R 6/3 2A4 U &ATA 1T*2A/'- 8 R '>A <### &isk sub system R ! ;ontrollers R = T3 R 2AI& # K (

SOFT5ARE TECHNOLOGIES USED IN SYSTEMS$

U *racle log U Internet Application 1erver AIA1C U 2eal Application ;luster A2A;C U Application development with R*racle forms @i

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R *racle reports @i

MODULES USED INSIDE THE COMPANY$

A;L 8 Access ;ontrol 4odule 3*4 8 3ill of 4aterial 40L 8 4aterial 0lanning 1&3 8 1upplier &atabase 0*1 8 0urchase *rder 1ystem I01 8 Inspection 0lanning 1heet I9E 8 In warding $IT 8 $ust In Time items L;L 8 Low ;ost Logistics Items 424 8 1un ;ontractor 4aterial Issues 4T9 8 1ub ;ontractor 4aterial Transfer >L2 8 >endor Luality rating >&0 8 >endor &elivery 0erformance 1TH 8 1tock M Inventory ;04 8 ;omprehensive 0rocess 4aster 00L 8 0roduction 0lanning 15; 8 1hop 5loor ;ontrol 0$ 8 nplanned $obs 2&; 8 Inter nits 2eceipt O &ispatch

'N1 8 ',cise 01L 8 0riced 1tored Ledger

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 E4; 8 Eorks 4ade Items ;osting >;1 8 >ehicle ;osting 1ystem 1;L 8 1ub ;ontract Ledger 24/0 Q 2eturnable 4aterial /ate pass 924/0 Q 9on 24/0 /;1 Q /auge ;alibration 1ystem ;51 Q ;hassis 5inal 1pecification LT41 Q Lean Tool 4anagement 1ystem

GRO5TH MILESTONES OF ASHOK LEYLAND

(%@@ Q 5ull air brakes introduced (%@= Q &ouble &ecker buses introduced. (%@7 Q 0ower steering offered. (%=% Q 4ultilane trucks introduced. (%7# Q Integral bus with air suspension. (%%! Q 1elf8certification status for defence supplies. (%%" Q I1* %### ;ertification. (%%6 Q I1* %##( ;ertification (%%= Q India)s first ;9/ powered bus. (%%7 Q L1 %### ;ertification (%%% Q ;9/ A;ompressed 9atural /asC introduced. !### Q 'uro8I, 'nginesMvehicles introduced. !##( Q I1* (6### 'nvironment 4anagement 1ystem ;ertification.

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!##! Q ',clusive 4achine line Q ! for Hino cylinder. !##" Q '8;omet launched. !##6 Q <#,### mark vehicle produced.

PRODUCT PROFILE
Ashok Leyland offers a comprehensive product range with trucks from =.< tons />E to (!< tons />E. 5rom (% to 7# seaters a host of special application vehicles and diesel engines from industrial gensets and marine application. 0roduct profile can be broadly split into si, categories vi.. passenger, goods, cargo, heavies, special >ehicles and 'ngines.

PASSENGER
I;> ;heetah 2ear 'ngine 3us ;ruiser 1uper >iking >iking Hino >estibule 3us ;9/ 3us &ouble &ecker 4*> >iking AL 0anther >iking

GOODS
Haulage Tipper ;omet !@(6 ;omet Taurus @N6 3ison Tractor

Tusker "<(@ 4ulti A,le Tusker Haulage Tipper ;argo %#%

CARGO
L;> ;argo (@(6

6=

HEAVIES
Haulage &umper Tractor 3eaver

SPECIAL VEHICLES
&efence 2I> 6 , 6 L2> 5ire 5ighter

ENGINES
Industrial 4arine

RESEARCH AND DEVELOPMENT

5or&d<+&)## Te+9no&o*- $
To offer world8class technology that is relevant and affordable to the Indian customer is the philosophy that drives 2O& at Ashok Leyland. *ver the years, this philosophy has been translated time and again into products that seamlessly integrate international technology with local needs. VThe role of 2O& is central in fulfilling the company8wide commitment to total customer satisfactionV states 4r. 2. 1eshasayee, 4anaging &irector, and adds that the increased infrastructural and financial support e,presses the company:s determination to become self8reliant in 2O&.

V)&!e o 9e C!# o'er

The immediate 2O& priorities are to pro8actively address safety and environmental issues, harness and adopt technologies that provide value to the customer in an atmosphere enabling creativity and innovation. 0owering those
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who Vengineer tomorrowsV with an enabling infrastructure has been top priority for the company.

Te# Tr)+7#
3ut our 2O& is not confined within walls. It e,tends to the test tracks as well. 2igorous tests are carried out under stringent simulated conditions that replicate the most treacherous landscapes. >ehicle ruggedness and longevity are a prime customer concern, as they directly impact earnings. 'ver conscious of this, Ashok Leyland makes e,tensive use of a modern ;A& set8up, a comprehensive test track facility Awhere cobble8stones are calibrated and reset periodicallyC, accelerated fatigue testing rigs and rigorous durability testing facilities. Together they ensure that there is a constant improvement in the life and on8road performance of every make of Ashok Leyland vehicle to hit the roads. 1afety, durability, through our 2O& efforts.

Inno%) "on#
Ashok Leyland product development successes have come from a keen sense of anticipation and attentiveness. The company initiated research into alternative fuels well before legislative debate had even begun in the country. The result was the implementation of ;9/ technology ahead of the rest promising a breath of fresh air for polluted cities.

Peop&e
Ee are close to 13DCCC peop&e, moulding and managing technology. And reaching the benefits of technology to our customers. *ffering transport solutions and after8 market support wherever our products operate 8 which is almost everywhere.

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Ee are spread throughout India, and even outside India. *ur tasks vary, so do our skills. 3ut we are bound together by a healthy chain of interdependence, to deliver value to the customers.

ENVIRONMENT POLICY
Ashok Leyland is committed to preserve the environment through a comprehensive environmental policy and a proactive approach in planning and e,ecuting the manufacturing and service activities. The objective of Ashok Leynand)s environmental policy is to adhere to all applicable environmental legislations and regulations, adopt pollution preventive techni+ues in design and manufacture, conserve all resources such as power, water etc, and optimi.e its usage, through scientific means, minimuse waste generation by all possible ways and 2educe, 2euse and 2ecycle the same through time bound action plan as well as provide a clean working environment to employees, contractors and neighbours. Ashok Leyland has proactively developed its engines to meet the progressive emission norms, including the 3harat 1hage II norms. The 'nnore unit was recently identified as one of the model energy Q efficient units by a ;II8T9'3 organi.ed energy conservation A'9;*9C mission. 5rom August (%%% F green energyG has been powering the Hosur 0lants. 'ven cooking is eco8friendly here. The canteen runs on 1olar Heaters and food waste becomes fodder to cattle at a cattle farm at 4athagiri near Hosur. To the best out of Ashok Leyland)s eco8friendly engine technology, round the year awareness and action programmes are held at *perators) meets and service campaigns. Ashok Leyland has also launched a dedicated mobile emission clinic
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operating on highways and at entry points to 9ew &elhi. *n an average !<#,### liters of recycled water is pumped into the garden saving 2s. (.< million per annum.

OBSERVATIONS AND INTERPRETATIONS2 S5OT ANALYSIS 1T2'9/H *5 TH' ;*40A9B

(. /ood Training 1ystem. !. /ood *rganisational ;limate. ". High 4arket 1hare 6. 1killed 'mployees <. 1trong 5unctional 1tructure @. 1tandard Luality 0roduct

5EAKNESS OF THE COMPANY

(. Low margin !. High price ". 1ales representatives are less 6. There is no proper mechanism to handle the grievance of the customers

OPPORTUNITIES FOR THE COMPANY

(. &ue to liberali.ation, demand for heavy vehicle have steeped up all over the globe. !. 9ational market through good advertisement. ". ;ompany provides better credit facility to dealers. 6. ;ompany introduces promotional programmes

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THREATS FACED BY THE COMPANY

(. High competion !. Liberal credit policy of other brand ". 0romotional programmes of other brand 6. ;omplicated national market
<. /ood replacement facility if other brands.

FINDINGS
(. In this organisation there is no fle,ible manufacturing system. !. There is no effective utili.ation of Human 2esources.
". To solve their work related problems L;; ALuality ;ontrol ;ircleC and

cross functional team are made effective. Eork instructions, standard operating procedures, inspection reports, L; charts are effective.. 6. In this organisation there is no fle,ible manufacturing system. <. There is no effective utili.ation of Human 2esources. @. To solve their work related problems L;; ALuality ;ontrol ;ircleC and cross functional team are made effective. =. Eork instructions, standard operating procedures, inspection reports, +uality control charts are effectively utilised by the employees.

SUGGESTIONS

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 The company should earmark more money for the advertisement and sales promotion of its products. It helps to increase the brand awareness and image. The company should concentrate on markets in the international arena where its competitors are less powerful. ;omplaints should be rectified in the shortest possible time. 5or this a customer satisfaction cell should be organi.ed.

CONCLUSION
Ashok Leyland is a well known automobile manufacturing company in India.In nit I, Hosur, there is a well planned organisation structure being followed. There is a well integration of all the functional departments which facilitates the use of software like '20. 2etention of the talented people is essential as they contribute a lot to success of the organisation. The catalogued training programme and the resulted report have been of great help to me, an aspirant manager, to understand the functioning of a major establishment like Ashok Leyland. The training programme has also revealed many unknown facts about the working of a manufacturing unit.

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BIBILIOGRAPHY
Human 2esource 4anagement Q Ashley 9ews. 5inancial 4anagement Total Luality 4anagement Eeb 3ibiliography Q I.4. 0andey Q 3estersiek Q www.ashokleyland.com

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