INDUSTRY PROFILE

The Automotive industry in the Republic of India is one of the largest in the

world. The country is the world's second largest manufacturer of motorcycles,

with annual sales exceeding 8.5 million in 2009.India's passenger car and

commercial vehicle manufacturing industry is the seventh largest in the world,

with an annual production of more than 2.6 million units in 2009. In 2009, India

emerged as Asia's fourth largest exporter of passenger cars, behind Japan,

South Korea and Thailand.

As of 2009, India is home to 40 million passenger vehicles and more than 1.5

million cars were sold in India in 2009 (an increase of 26%), making the country

the second fastest growing automobile market in the world.By 2050, the country

is expected to top the world in car volumes with approximately 611 million

vehicles on the nation's roads. A major chunk of India's car manufacturing

industry is based in and around the city of Chennai (also known as "Detroit of

India") with the Indian city accounting for 60 per cent of the country's automotive

exports.

Following economic liberalization in India in 1991, the Indian automotive industry

has demonstrated sustained growth as a result of increased competitiveness and

relaxed restrictions. Several Indian automobile manufacturers such as Tata

Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and

international operations. India's robust economic growth led to the further

expansion of its domestic automobile market which attracted significant India-

specific investment by multinational automobile manufacturers. In February 2009,

monthly sales of passenger cars in India exceeded 100,000 units.

The first car ran on India's roads in 1897. Till the 1930s, cars were imported

directly. Embryonic automotive industry emerged in India in the 1940s. Following

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the independence, in 1947, the Government of India and the private sector

launched efforts to create an automotive component manufacturing industry to

supply to the automobile industry. However, the growth was relatively slow in the

1950s and 1960s due to nationalisation and the license raj which hampered the

Indian private sector. After 1970, the automotive industry started to grow, but the

growth was mainly driven by tractors, commercial vehicles and scooters. Cars

were still a major luxury. Japanese manufacturers entered the Indian market

ultimately leading to the establishment of Maruti Udyog. A number of foreign

firms initiated joint ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for

building motorcycles and light commercial-vehicles. It was at this time that the

Indian government chose Suzuki for its joint-venture to manufacture small cars.

Following the economic liberalisation in 1991 and the gradual weakening of the

license raj, a number of Indian and multi-national car companies launched

operations. Since then, automotive component and automobile manufacturing

growth has accelerated to meet domestic and export demands.

Exports

Mahindra Scorpio Jeep in service with the Italy's CNSAS.

2

India's automobile exports have consistently grown and reached S4.5 billion in

2009, with United Kingdom being India's largest export market followed by

Germany, Netherlands and South Africa. India's automobile exports are expected

to cross $12 billion by 2014.

According to New York Times, India's strong engineering base and expertise in

the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of

manufacturing facilities of several automobile companies like Hyundai Motors,

Nissan, Toyota, Volkswagen and Suzuki.

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan

Motors plans to export 250,000 vehicles manufactured in its India plant by

2011.Similarly, General Motors announced its plans to export about 50,000 cars

manufactured in India by 2011.

In September 2009, Ford Motors announced its plans to setup a plant in India

with an annual capacity of 250,000 cars for US$500 million. The cars will be

manufactured both for the Indian market and for export. The company said that

the plant was a part of its plan to make India the hub for its global production

business. Fiat Motors also announced that it would source more than US$1

billion worth auto components from India.

A Tata Safari on display in Poznan, Poland.

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According to Bloomberg L.P., in 2009 India surpassed China as Asia's fourth

largest exporter of cars.

In recent years, India has emerged as a leading center for the manufacture of

small cars. Hyundai, the biggest exporter from the country, now ships more than

250,000 cars annually from India. Apart from shipments to its parent Suzuki,

Maruti Suzuki also manufactures small cars for Nissan, which sells them in

Europe. Nissan will also export small cars from its new Indian assembly line.

Tata Motors exports its passenger vehicles to Asian and African markets, and is

in preperation to launch electric vehicles in Europe in 2010. The firm is also

planning to launch an electric version of its low-cost car Nano in Europe and the

U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and small

SUV models in the U.S. market. Bajaj Auto is designing a low-cost car for the

Renault Nissan Automotive India, which will market the product worldwide.

Renault Nissan may also join domestic commercial vehicle manufacturer Ashok

Leyland in another small car project.While the possibilities are impressive, there

are challenges that could thwart future growth of the Indian automobile industry.

Since the demand for automobiles in recent years is directly linked to overall

economic expansion and rising personal incomes, industry growth will slow if the

economy weakens.

Passenger vehicles in India

List of cars available in India

Domestic Indian automotive companies

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Tata Indigo Manza.

Chinkara Motors: Beachster, Hammer, Roadster 1.8S, Rockster,

Jeepster, Sailster

Hindustan Motors: Ambassador

ICML: Rhino Rx

Mahindra: Major, Xylo, Scorpio, Bolero

Premier Automobiles Limited: Sigma, RiO

San Motors: Storm

Tata Motors: Nano, Indica, Indica Vista, Indigo, Indigo Manza, Indigo CS,

Sumo, Safari, Xenon, Aria

Foreign automotive companies in India

Vehicles manufactured or assembled in India

Manufactured only in Chennai, India, the i10 is one of Hyundai's best selling

globally exported cars.

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Maruti Swift. Maruti Suzuki, a subsidiary of Japan's Suzuki Motor, is the largest

automobile manufacturer in India.

BMW India: 3 Series, 5 Series, 1 Series.

Fiat India(in collaboration with Tata Motors): Grande Punto, Linea, Palio

Stile.

Ford India: Ford Figo, Ikon, Fiesta, Endeavour.

General Motors India

Chevrolet (CSPIL): Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera.

Honda Siel: Jazz, City, Civic, Accord.

Hyundai Motor India: Santro, i10, i20, Accent, Verna Transform, Sonata

Transform.

Mahindra Renault: Logan

Maruti Suzuki: 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire,

SX4, Omni, Versa, Eeco, Gypsy, Grand Vitara

Mercedes-Benz India: C-Class, E-Class.

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Mitsubishi (in collaboration with Hindustan Motors): Lancer, Lancer Cedia

Nissan Motor India: Micra.

Toyota Kirloskar: Corolla, Innova, Camry.

Volkswagen India: Polo, Jetta, Passat.

Audi India: A4, A6, Q5.

Škoda Auto India: Fabia, Octavia, Laura,Superb.

Vehicles imported to India

Audi: A8, TT, R8, Q5, Q7.

Bentley: Arnage, Azure, Brooklands, Continental GT, Continental Flying

Spur, Mulsanne.

BMW: 6 Series, 7 Series, X3, X5, X6, M3, M5, M6 and Z4.

Chevrolet: Captiva.

Fiat: Nuova 500, Bravo.

Honda: Civic Hybrid, CR-V.

Jaguar: XF, XJ, XK.

Lamborghini: Gallardo, Murciélago.

Land Rover: Range Rover, Range Rover Sport, Discovery 4, Freelander

2.

Maybach: 57 and 62.

Mercedes-Benz: CL-Class, CLS-Class, S-Class, SL-Class, SLK-Class,

M-Class, Viano.

Mitsubishi: Montero, Outlander.

Nissan: Teana, X-Trail, 370Z,

Porsche: 911, Boxter, Panamera, Cayman, Cayenne.

Rolls Royce: Ghost, Phantom, Phantom Coupé, Phantom Drophead

Coupé.

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Škoda: Superb.

Suzuki: Grand Vitara.

Toyota: Land Cruiser, Land Cruiser Prado, Fortuner*, Prius.

Volkswagen: Beetle, Touareg, Phaeton.

Volvo: S60, S80, XC90.

Commercial Vehicle manufacturers in India

Local Brands

Ashok Leyland

Force

Mahindra Navistar

Premier

Tata

Foreign Brands

Volvo

Audi

BMW

Mercedes-Benz

Electric car manufacturers in India

Ajanta Group

Mahindra

Hero Electric

REVA

Tara International

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COMPANY PROFILE

ASHOK LEYLAND is the flagship of the HINDUJA GROUP and is the second

largest manufacturer of commercial vehicles in India. The company was

established was ASHOK MOTORS in 1948 and entered into collaboration with

British Leyland in 1955 with current name as ASHOK LEYLAND. The company

is one of India’s leading manufacturers of commercial vehicles, such as trucks

and buses, as well as emergency and military vehicles. Operating six plants,

Ashok Leyland also makes spare parts and engines for industrial and marine

applications. It sells about 60,000 vehicles and 7,000 engines annually. It is the

second largest commercial vehicle company in India in the medium and heavy

commercial vehicle (M & HCV) segment with a market share of 28% (2007-08).

With passenger transportation options ranging from 19 seaters to 80 seaters,

Ashok Leyland is a market leader in the bus segment. The company claims to

carry over 6o million passengers a day, more people than the entire Indian rail

network. In the trucks segment Ashok Leyland primarily concentrates on the 16

ton to 25 ton range of trucks. However, Ashok Leyland has presence in the entire

truck range starting from 7.5 tons to 49 tons. The joint venture announced with

Nissan Motors of Japan would improve its presence in the Light Commercial

Vehicle (LCV) segment.

The company has six manufacturing locations in India:

ENNORE

HOSUR-I

HOSUR-II

HOSUR-II a(CPPS)

BHANDARA

ALWAR

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Ashok Leyland’s Technical Centre, at Vellivoyalchavadi in the outskirts of

Chennai, is a state-of-the-art product development facility, that apart from

modern test tracks and component test labs, also houses India’s and only Six

Poster testing equipment. The company has an Engine Research and

Development facility in Hosur.

The company is setting up a new Plant in the North Indian state of Uttarakhand

at Pant Nagar at an investment outlay of Rs.1200 crores this plant is expected to

go on stream in the tear 2010. The plant will have a capacity to produce around

40,000 commercial vehicles and is expected to cater mainly to the North Indian

market taking advantage of the excise duty and other tax concessions.

Ashok Leyland is currently headed by Mr.R.Seshasayee who is the Managing

Director since 1998. Under his leadership the company has expanded from a

purely Indian-centric company to a company with global focus Mr. R.Seshasayee

was also the president of CII (Confederation of Indian Industry), the apex body

representing Indian Industry for the year 2006-2007.

The following are the other functional heads at ASHOK LEYLAND:

1. Mr. Vinod Dasri – Whole time director

2. Mr. K.Sridharan – Chief Financial Officer

3. Mr. J.N.Amrolia – Executive Director- Construction and Allied Business

4. Mr. Anup Bhat - Executive Director – Strategic Sourcing

5. Mr. S.Balasubramanian - Executive Director – Projects

6. Mr. A.K.Jain - Executive Director – Project Planning

7. Mr. R.R.G.Menon - Executive Director – Product Development

8. Mr. N.Mohanakrisnnan - Executive Director – Internal Audit

9. Mr. M.Natraj - Executive Director – Global Bus Strategy

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10.Mr. Rajindar Malhan - Executive Director – International

Operations

11.Mr. Rajeev Saharia - Executive Director – Marketing

12.Mr. Shekar Arora - Executive Director – Human Resources

13.Mr. B.M.Udayshankar - Executive Director Manufacturing

14.Mr. A.R.Chandrasekaran - Executive Director – Secretarial and Company

Secretary

CURRENT STATUS;

Ashok Leyland is a technology leader in the commercial vehicle sector of India.

The history of the company has been punctuated by a number of technology

innovation, which have since become industry norms. It was the first to

introduce multi-axle trucks, full air brakes and a host of innovations like the

rear engine and articulated buses in India. In 1997, the company launched the

country’s first CNG bus and 2002, developed the first hybrid electric

vehicle.

The company has also maintained its profitable track record for 60 years. The

annual turnover of the company was USD 1.4 BILLION in 2008-09.Selling

54,431 medium and heavy vehicle in 2008-0. Ashok Leyland is India’s largest

exporter of medium and heavy duty trucks out of India. It also one of the largest

private sector employers in India

with about 12,000 employees working in 6 factories and offices spread over the

length and breadth of India.

The company has increased its rated capacity to 105,000 vehicle per annum.also

further investment plans including putting up two new plants –one in uttarakhand

in north India and bus body building unit in middle east Asia are fast a foot. It

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already has a sizable presence in African countries like Nigeria, Ghana, Egypt

and South Africa.

One company acquired Czech republic based Avia’s truck business. The

newly acquired company has named Avia Ashok Leyland motors s.r.o. This

gives Ashok Leyland a foothold in the highly competitive European truck market.

The Hinduja group also bought out IVECO’S indirect stake in Ashok Leyland in

2007.the promoter shareholding now stands at 51%.

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Organization structure:

R J Shahaney, Chairman

Board of Directors

R J Shahaney, Chairman

D G Hinduja, Vice Chairman (Alternately M Kale)

D J Balaji Rao

A K Das (Alternate: P Banerjee)

P N Ghatalia

S R Krishnaswamy

S Raha

F Sahami

S Shroff

R Seshasayee, Managing Director

Chief Operating Officer

V.K.Dasari

Chief Financial Officer

K.Sridharan

Executive Directors

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J.N.Amrolia

S.Balasubramanian

N.Basavanahalli

A.Bhatt

A.R.Chandrasekharan

A.K.Jain

R.Malhan

Mohan Krishnan

S.Nagarajan

M.Natraj

B.M.Udayashankar

Executive Director and Company Secretary

N.Sundararajan

Auditors

M.S.Krishanaswami & Rajan Haskins & Sells

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ASHOK LEYLAND

An Introduction:

The origin of Ashok Leyland can be traced to he urge for self-reliance, felt

by independence India. Pundit Jawaharlal Nehru, India’s first prime minister

persuaded Mr. Raghunandan Saran, an industrialist, to enter automotive

manufacture. In 1948, Ashok motors was set up in what was then Madras,

destiny and name changed soon with equity participation by British Leyland

and Ashok Leyland commenced manufacture of commercial vehicles in 1950.

Since then Ashok Leyland has been a major presence in India’s

commercial vehicle industry with tradition of technological leadership, achieved

through tie-ups with international technology leaders and through vigorous in

house R&D.

Access to international technology enabled the company to set a tradition to

be first with technology. Be it full air brakes, power steering or rear engine

busses, Ashok Leyland pioneered all these concepts, responding to the

operating conditions and practices in the country. The company made its

vehicles strong over engineering them extra metallic muscles. Designing

durables products that make economic sense to the consumer, using

appropriate technology became the design philosophy of the company which

in turn has molded consumer attitudes and the brand personality.

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In 1987, the overseas holding by land Rover Leyland International Holdings

limited (LRLIH) was taken over by a joint venture between the Hinduja Group,

the Non-Resident Indian transnational group and IVECO flat SPA, part of the

flat Group and Europe’s leading truck manufacturer.

HISTORY

Ashok Leyland was urge for self-reliance industry felt by independent India’s first

Prime Minister Pt. Jawaharlal Nehru, persuaded Mr. Raghunandan Charan, an

industrialist to enter automotive manufacture. In 1948 Ashok Motors was setup in

what was than Madras, for the assembly of Austin Cars. After that in 1955 the

company’s name and luck changed by Equity participation by British company

Leyland and Ashok Motors gat a new brand “ASHOK LEYLAND” the

manufacture of commercial vehicle industry. With a convention of technological

leadership achieved by tie-ups and collaboration with international technology

leading organization and through enthusiastic in house research and

development it setup it’s existence in Indian and foreign market.

Admittance to global technology and equipment enabled the company to set first

with technology in full air brakes Power – steering, Rear- engine buses etc.

Ashok Leyland pioneered all these concepts. Responding to the operating

conditions and practices in the country, the company made its vehicles strong

over engineering them with extra metallic-muscles.

Ashok Leyland vehicles have built repute for reliability and austerity. The

5,00,000 vehicles we have put on the roads have considerably eased the

additional pressure placed on road transportation in independent India.

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Ashok Leyland’s busses are used by the India’s four for out of 5 most populated

states as their state transportation corporation vehicles. Some of them like

double-decker and vestibule buses are unique models from ASHOK LEYLAND

Tailor made for high- density routes. The company’s products are inherent to

Indian lives. Ashok Leyland dominates in city passenger’s transportation with

specialized high capacity buses such as double-decker and vestibule bus for

which the company is the only Indian source.

Ashok Leyland supplies a host of modern special purpose vehicles to India’s

defense sector. This includes stallion 4x4s, forming the backbone of the Indian

army’s logistics operations, now being assembled within the defense sector

through a technology transfer agreement. The stallions left an indelible mark for

reliability during the kargil conflict. When India and Pakistan opened their

common gate at Wagaha, Ashok Leyland buses were the choice for this

prestigious cross border passenger service.

Ashok Leyland has maintained its technological leadership even as it offers the

most comprehensive range of model configurations in its class, offering the

customer the closest fit with his unique requirements. A pioneer in alternate fuels,

Ashok Leyland made India’s first CNG powered bus in 1997. In 2002, India

entered another frontier technology when Ashok Leyland developed India’s first

Hybrid electric bus in a partnership with the Government sector.

MAJOR ACHIEVENTS

In 1993, became first Indian Auto Company to receive ISO 9002

certification.

Received ISO 9001 certification in 1994, ISO 9000 in 1998, and

ISO 14001 certification for all vehicle manufacturing units in 2002.

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Became the first Indian Auto company to receive the largest

ISO/TS 16949 Corporate Certification (in July 2006).

First company to introduce full air breaks, power steering and rear

engine busses in India.

POLICIES OF THE COMPANY

Quality policy:

Ashok Leyland is committed to achieve customer satisfaction by anticipating and

delivering superior value to the customer in relation to their own business through

the products and services offered by the company and to comply with statutory

requirement. Towards this the quality policy of Ashok Leyland is to make

continuous improvements in the processes that constitute the quality

management system to make them more robust ant to enhance their

effectiveness and efficiency in achieving stated objective leading to:-

Superior products manufactured by the company as also services

offered by the company.

Maximum use of employee’s potential to contribute to quality and

environment, by progressive up gradation of their knowledge and skills

as appropriate to their functions.

Seamless involvement from vendors and dealers in the mission of the

company to address customer changing needs and protection of the

environment.

It is mandatory on the part of every employee of Ashok Leyland to

understand, implement and maintain the quality policy of the company

and to implement the procedures incorporated in this manual and other

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associated quality system documents issued by the manufacturing

units and corporate functional divisions on the basis of guidelines in

this manual.

Environmental policy:

Any type of activity that is performed or any type of product that is manufactured

had an effect on the surrounding or environment.

At Ashok Leyland are committed to preserving the environmental through a

comprehensive environmental policy and productive approach in planning and

executing our manufacturing and service activities.

We are concerned about the earth our children will inherit that’s why we make

sure our vehicles consume less fuel and pollute less. This concern is reflected in

the manufacturing systems, the various processes energy conservation measure

and conscious greening indicate of the company.

A system is employed to control or minimize the adverse impact on the

environment is environmental management system (EMS).

Objective of Ashok Leyland Environmental policy are:-

To adhere to all applicable environment legislation and regulations

To adopt pollution preventive techniques in design and manufacturing

of our products.

To conserve all such resources such as power, water, oil, gas,

compressed air etc. & optimizes their usage through scientific methods.

To provide a clean working environment to our employees, contractors

and neighbors.

Commit to comply with all relevant legal and other requirements.

Continuously strive to minimize waste generation by all possible ways and

to reuse and recycle the same through a time bound action plan

Things done to protect the environment and achieve the goal of the

policy:-

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Conserving natural resources like wood , coal , petroleum products

Avoiding wastage water at plant area

Switching off the idle engine, motors, pump & lights

Avoiding spilling oil , grease, paints on the floor

Do not through oil into drain

By planting many trees inside the company area

Recently planting plants on 5 June 2008(world environment day)

Safety and Health Policy:

Intension & commitment of the top management

Ashok Leyland affirms that all its employees irrespective of the rank need to be

safe guarded against any person injuries or damage to the properties during

working period. That the management recognises the principle that accident

prevention contributes in the long run progress and development of the

organisation.

Ashok Leyland is committed to:-

Implementing all practical safety measures like safe working and

environmental condition.

Carrying out a systematic critical appraisal of all potential hazards

involving personal, plant services and operating methods.

Following strictly safety rules and regulations incorporated in the factories

act and rules.

Maintaining safe and healthy working environment at all working places

conductive to the success of the management safety programs in the long

run.

Implementing safe and health education programmes for employee with

specific emphasis on creating safety and health awareness.

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Welcoming useful and constructive suggestions and ideas in regard to

safety and health.

ASHOK LEYLAND

ALWAR UNIT

Alwar is a strategic town in Rajasthan midway between Delhi and Jaipur

located with national capital region. The alwar unit was established in 1982 in

Rajasthan and is an assembly plant for a wide range of vehicles with an

emphasis on passenger chassis, including CNG busses, situated close to the

northern market. CNG is used as an alternate fuel to diesel and is very less

polluting. The pollution of CNG vehicle is less than ever Euro-4 vehicle which

is known for its lesser pollution vehicle.

The total covered area of Alwar plant is 352 acres and the fencing is done in

around 161 acres of area. The plant comprises of four shops called as:

SHOP 1

SHOP 2

SHOP 5 &

SHOP 7

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The plant has three gates one is the main gate, one for entering the goods

carrier, third for the product going out of the plant for sale.

PRODUCTION PLANT AT ALWAR UNITPRODUCTION PLANT AT ALWAR UNIT

.

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The five ASHOK LEYLAND values are:

International

Speedy

Value creator

Innovative

Ethical

MAN POWER AT ASHOK LEYLAND – ALWAR:

Executives 125

Associates 82

Permanent employees 125

Temporary employees 700

Apprentices 90

Contractors 293

Security 85

TOTAL 1500

VARIOUS DEPARTMENTS AND THEIR FUNCTIONVARIOUS DEPARTMENTS AND THEIR FUNCTION

PRODUCTION DEPARTMENTPRODUCTION DEPARTMENT

This department plays a vital role.

To product the planned volume as per predetermined model –mix

in right quality and at optimum cost.

To plan and monitor the system so as to lead an efficient production

process.

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To control all the cost parameters like materials consumption power

& fuel, idle time.

Over time and absenteeism.

To maintain and promote industrial harmony in respect of matters

relating to manufacturing active

QUALITY CONTROL DEPARTMENTQUALITY CONTROL DEPARTMENT

The quality department at Alwar implements and maintains the qualityThe quality department at Alwar implements and maintains the quality

standards and system. Prescribed by the central quality controlstandards and system. Prescribed by the central quality control

department the main function of this department are as follows:department the main function of this department are as follows:

Analyzing of all non-conforming products and coordinatingAnalyzing of all non-conforming products and coordinating

corrective/ preventive action.corrective/ preventive action.

To investigate the customers complaint and follow up action.To investigate the customers complaint and follow up action.

To fined the caliber of gauges and instruments.To fined the caliber of gauges and instruments.

Identifying and implementing of applicable quality procedures.Identifying and implementing of applicable quality procedures.

MATERIAL DEPARTMENTMATERIAL DEPARTMENT

This department is engage in receipt and dispatch of materialsThis department is engage in receipt and dispatch of materials

from an to other units.from an to other units.

Planning and procurement of bought out finished component,Planning and procurement of bought out finished component,

tools and consumable items.tools and consumable items.

Proper handling storage and issue of component. MonitorProper handling storage and issue of component. Monitor

vendor performances in terms of quality and regularity of supply.vendor performances in terms of quality and regularity of supply.

Identifying the supply sources and negotiate terms of supply ofIdentifying the supply sources and negotiate terms of supply of

on going basis.on going basis.

Follow up materials against production requirement from otherFollow up materials against production requirement from other

units of Ashok Leyland.units of Ashok Leyland.

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PURCHASE DEPARTMENTPURCHASE DEPARTMENT

To place the order according to the requirements of the production.To place the order according to the requirements of the production.

To place the order of the materials required by different departmentTo place the order of the materials required by different department

of the organization.of the organization.

To make the comparative statements and select the one which isTo make the comparative statements and select the one which is

appropriate according to the requirement.appropriate according to the requirement.

The strategic sourcing department decides the vendors for the part;The strategic sourcing department decides the vendors for the part;

Chennai (head office) and every unit can place the order to theChennai (head office) and every unit can place the order to the

vendor only.vendor only.

SYSTEM DEPARTMENTSYSTEM DEPARTMENT

This department is also called as the Ashok Leyland information

management system.

Maintain the hardware system and software problem of

organization.

Making the link among the all department of the organization by

interlink system.

To maintain the link through hardware a software to head office

(Chennai) and other unit of the organization.

PRODUCTION SERVICE DEPARTMENTPRODUCTION SERVICE DEPARTMENT

This plant engineering including preventive and break down maintenance

of equipments..

Selection processes and processing equipments including jigs, fixtures,

and gauges in consultation with project planning.

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To procure machinery spares.

To design and implement preventive maintenance on equipments.

FINANCE DEPARTMENT FINANCE DEPARTMENT

Material accounting involving accounting of good. Goods received and

issued to the production and production and payment to supplier.

Basic data on the product cost at various stages and assist in cost control.

Finance activities relating to employees i.e. payroll various deduction, staff

welfare.

All accounting activities relating to the operation of the units and reporting to the

various operating hears on performance versus plan.

Reporting to the corporate finance for the purpose of consolidation of

accounts and for budgetary control.

PERSONAL AND ADMINISTRATION DEPARTMENPERSONAL AND ADMINISTRATION DEPARTMEN

Following are the main functions of this department:

Recruitment

Manpower planning

Training

Welfare Activities

Rules of Discipline

This department is responsible for implementing appropriate

recruitment, selection and placement procedures in respect of all union-zed

categories of employee. It also selects suitable manpower form the various

agencies such as employment exchanges institute open Market etc. All welfare

activities like canteen service, provides etc.

ORGANIZATIONAL CHART

(HR DEPARTMENT)

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RAMESH YADAVDivisional Manager-HR

FUNCTIONS OF HR DEPARTMENT:

1. Legal compliance department

2. Benefits – Welfare

3. Human resource planning

4. Employee relations

5. Training

6. Appraisal

7. Compensation

REVIEW OF LITERATURE

TRAINING AND DEVELOPMENT

INTRODUCTION

“Training” is a learning experience in that it seeks a relatively permanent change

in an individual that will improve his or her ability to perform on the job. We

typically say training can involve the changing of skills, knowledge, attitudes, or

social behavior. It may mean changing what employees know, how they work,

their attitudes towards their work, or their interactions with their co-workers or

their supervisors. Where as the term “Development” is a broad one.

Development includes both training to increase skill in performing a specific job

and education to increase general knowledge and understanding of our total

DANISH ALI KHANAsst. Manager-HR

BHUPENDRA KUMAR

Asst. Manager-HR

RAVINDRA KUMAR SHARMA

Deputy Manager

KALI DASSDriver

27

environment. The aim of development is to improve the overall personality of an

individual. This term is mostly used in the context of executives only.

Training is a short-term process utilizing a systematic procedure by which

workers learn technical skills for a definite purpose. On the other hand,

development is a long-term educational process by which managerial personnel

learn conceptual and theoretical knowledge for general purpose.

Training and development is one of important functions of human resource

development (HRD) aimed at improving the performance of individuals and group

of employees in organizational setting. Training refers to a planned effort by an

organization to facilitate employees, learning of job related competencies. It

constitutes a program of learning which is properly design to upgrade knowledge,

skills experience, competencies, expertise and the job performance of staff. The

current research works on training and development focus on the following areas

such as strategic training need assessment, program design, transfer of training,

training evaluation, E-learning and the use of technology in training, new

technologies and training delivery, training for virtual work, multiple delivery

method, best practices model of training and development and training and

performance support.

OBJECTIVES OF TRAINING

Training objectives are formulated with the company’s goal and objectives:-

To prepare the employees both newly recruited and already employed to

meet the present as well as the future requirement of the job and the

organization.

To prevent obsolescence.

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To improve work methods and skills so as to increase quality and quantity

of output.

To prepare the employees for higher level responsibilities.

To increase the efficiency and effectiveness of employees by updating

them on latest concept and techniques.

To facilitate succession planning i.e. to build up a second line of

competent employees.

To develop inter-personal relations.

Training and development programs are also important to cope up with the

changes in technology and with diversity within organization. Today because of

number of changes in technical fields, these programs are increasingly

emphasizing on converting the organization into learning organizations and

human performance management. In the field concerned with organizational

activity aimed at bettering the performance of individuals and groups in

organizational settings. It has been known by several names, including employee

development, human resource development, and learning and development.

The training and development encompasses of three main activities:-

Training-

This activity is both focused upon, and evaluated against, the job that an

individual currently holds.

Education-

The activity focuses upon the jobs that an individual may potentially hold in

the future, and is evaluated against those jobs.

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Development-

The activity focuses upon the activities that the organization employing the

individual, or that the individual is part of, may take part in the future, and is

almost impossible to evaluate.

Types of training

Training in an organization can be mainly of two types:-

1. Internal Training

2. External Training

1. Internal Training:

Internal Training involves when training is organized in-

house by the human resources department or training department using either a

senior staff or any talented staff in the particular department as a resource

person.

2. External Training:

On the other hand External Training is normally

arranged outside the firm and is mostly organized by training institutes or

consultants. Whichever training, it is very essential for all staff and helps in

building career positioning and preparing staff for greater challenges.

METHODS OF TRAINING

Broadly there are two types of training methods:-

A. On the job training

B. Off the job training

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A.) On the job training:

In this method, the trainee is placed on the regular job & taught the skill

necessary to perform it. The trainee learns under the guidance and supervision

of the superiors or the instructor. The trainee learns by observing & handling the

job. Therefore it is called “Learning by doing”.

Several methods are used to provide On the job training, e.g. Coaching, job

rotation, committee assignment.

B.)Off the job training:

Off the job training occurs when workers are taken away from their place of work

to be trained. This may take place at training agency or college, although many

large firms have their own training centers. Training can take the form of lectures

or self-study can be develop more general skill & knowledge that can be used in

a variety of situations.

There are different types of training methods (on the job & off the job). Such as:--

VESTIBULE TRAINING

This training is conducted away from the actual work floor. Workers are trained

on special machines in a separate location i.e. classrooms. The vestibule school

is run by the Personnel Department. Here, the working environment is artificial

but it is just like the actual conditions. The idea is that the trainee learns in

conditions simulated to the real one until he has picked up well.

Merits:-

The instructor is a specialist and. more skilled at teaching.

Since the training is given off the job, trainees can concentrate

on learning.

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It has no problem of transferring learning to the job, because

this training uses the same equipments the trainee will use on

the job.

The instructor gives more attention to the trainees because he

has no other work assigned to him.

The employee learns the job in a short time. Individualized can

be given.

Demerits:-

It is expensive method as duplicate machines and tools are

required.

Training is given under artificial conditions; hence workers feel

difficulty in adjustment on actual job.

It may create line-staff conflict. The vestibule school trains

employee and turns him over to the superior.

But if the employee is deficient in performance, who is to blame? The superior

may blame school for poor training.

APPRENTICESHIP PROGRAMMES

It is designed for imparting technical skill. It combines practical knowledge on the

job and classroom instructions in particular subjects. This method of training is

used in a number of crafts such as machinists, electricians, pipe-fitters, welders,

tinners, carpenters etc.

In many industries such as mental, printing and building construction, this system

of training is very popular. The apprentice training may continue 3 ton 5 years.

The trainees get some stipend during their training period. The workers are

usually absorbed by the concerned industry after training period is over. It is the

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oldest and most common method of training used in crafts, trades, and

technical jobs.

Merits:

Trainees get some amount of stipend during training.

The trainees acquire valuable skill which carries good

demand in the market.

It reduces production cost as labour turnover is very low.

It is cheaper source of skilled labour for the employer.

The loyalty of the employees is created.

Demerits:

The training period is very low. Hence, it is an expensive

method.

The training requires regular supervision which may not

be possible.

Rigid standards make this method unsatisfactory.

If a worker does not complete apprenticeship, he may not

be absorbed. This creates labour problem in the firm.

CLASSROOM LECTURES

It is the most widely used method of training. It involves speaking or

presentations to large no. of trainees usually from prepared notes. There are two

variations in this method: Talk & Discussion. Talk involves encouraging trainees

to raise question so as to maintain interest in the topic. In discussion, knowledge,

ideas and opinions are freely exchanged among the trainees and the trainer.

Lecture is means of telling trainees something. Here the instructor presents a

series of facts, concepts, or principles and explains relationships.

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Lectures, case studies, group discussion & audio visual aids are used to explain

knowledge and skills to the trainees.

It is also useful orientation and safest training programmes some companies

maintain their own training institutes.

Merits:

It is a simple way of imparting knowledge to trainees.

It requires less time. The trainer can present more material in a

given amount of time than he can by any other method.

It can be used with very large group also.

It is the most economical. Here, the instructor orally communicates

his ideas.

Slides, projectors, videos motion pictures, closed circuit TV, etc.

can be used in lectures. This makes talk effective.

Demerits:

It represents one way communication. It does not provide for

trainee participation. Thus, little learning may take place.

Lectures are inadequate by themselves for teaching new skills or

for changing attitudes.

It may be frustrating and monotonous to some trainees, because

sometimes it creates stress and monotony.

It may also lack feedback from trainees.

It is impossible to adjust lecture for individual differences within a

group.

E – LEARNING

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Business firms are increasingly using electronic technology for training. E-

learning methods include training CD-ROM, Internet & Intranet, Satellite

broadcast, virtual classrooms and digital collaboration between trainees.

REASONS FOR EMPLOYEE TRAINING AND DEVELOPMENT

The reasons behind employee training and development can not be

overemphasized. From our discussion so far, one can easily deduce some

reasons behind firms engaging in training and developing their staff. We will

summarize some of the reasons thus;

1) When needs arise as a result of finding from outcome of performance

appraisal.

2) As part of professional development plan.

3) As part of succession planning to help an employee be eligible for a

planned change in role in the origination.

4) To imbibe and inculcate a new technology in the system.

BENEFITS OF EMPLOYEE TRAINING AND DEVELOPMENT

Increased job satisfaction and morale among employees.

Better inter personal relationship and customer satisfaction.

Increased employee motivation.

Increased capacity to adopt new technologies and methods.

Increased efficiencies in processes, resulting in improved financial gain.

Increased innovation in strategies and products.

Reduced employee turnover.

Enhanced company image.

Better Risk Management and Staff Safety consciousness.

Companies should support learning, in general, and not just in support of

knowledge needed for the employee’s current or next anticipated job. It should

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be noted that the key factor is keeping the employee interested, attending,

engaged, motivated and retained.

For every employee to perform well especially Supervisors and Managers there

is need for constant training and development. The right employee training,

development and education provides big payoffs for the employer in increased

productivity, knowledge, loyalty and contribution to general growth of the firm.

In most cases external trainings for instance provide participants with the avenue

to meet new set of people in the same field and network. The meeting will give

them the chance to compare issues and find out what is obtained in each other’s

environment. This for sure will introduce positive changes where necessary.

To conclude that organizations depend on people to achieve their objectives.

Employee training has become increasingly important in this direction. While

imparting training care should be to make it as scientific as possible so that it will

serve the desired objectives.

Process of Training

Because the objective of HRD is to contribute to the organization’s overall goals,

training programmes should be developed systematically and with true business

needs in mind. Basically, training programme has four phases:

(1) Needs assessment,

(2) Design and development of training,

(3) Delivery of training, and

(4) Evaluation of training.

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If each phase is carefully implemented, effective and relevant training is likely to

be the result.

The process of training is briefly discussed an under:

1. Assessment Phase:

The goal of assessment phase is to collect information to determine if training is

needed in the organisation. If it is needed it is then important to determine where

in the organisation it is needed, what kind of training is needed and what specific

knowledge, abilities, skills or other characteristics should be taught. This

information is collected by conducting three types of analyses: at the

organisational, job, and individual level of analysis. After the information is

compiled, objectives for the training programme can be derived.

2. Design and Development Phase:

The goal of development phases of training is to design the training environment

necessary to achieve the objectives. This means trainers must review relevant

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learning issues, including characteristics of adult learners and learning principles

as they apply to the particular training and potential trainees under consideration.

Also, trainers must identify or develop training materials and techniques to use in

the programme. Finally, after the appropriate learning environment is designed or

selected, the training is conducted.

3. Implementation Phase:

To implement training programme, various training methods, materials,

audiovisual media used. There are various training methods: OJT, classroom

methods, experiential approaches (case study, business games, simulations, in-

basket exercise, role playing, behavior modeling), outdoor education, self-paced

or computer-based training media. Each method has a number of techniques

appropriate for particular situation. The trainer needs to select the best

combination of techniques that will maximize trainee learning. Once the trainer

design and schedules the programme, the next step is the actual implementation

of the training methods, skills and approaches. This includes two major actions:

a) Arranging the physical environment—

It is particularly important to

on-the job training because the trainee must feel comfortable enough to

concentrate and learn. The trainer should pay attention to such problems as

extreme temperature, physical distractions, inappropriate lighting, physical

barriers, etc. A suitable locatior for training must be chosen. Computers and

other technology should be tested and tried out in advance.

b) Getting started—

Having all the elements needed to implement the

training plan, the next step is to do it. It is important for the trainer to get the

program off to a good start and maintain it. The trainer should determine each

trainee’s capacity and motivation to learn. There should be some ice-breaker

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exercise to help the participants get to know each other and establish rapport

with each other and the trainer.

4. Evaluation Phase:

The goal of the evaluation phase is to examine whether the training program has

been effective in meeting the stated objectives. The evaluation phase requires

the identification and development of criteria which should include participant’s

reactions to the training, assessment of what they learned in the training

program, measures of their behavior after the training, indicators of

organizational results ( e.g., changes in productivity data, sales figures,

employee turnover, accidents rates ), and return on investments (ROI) or utility

analysis. An experimental design is chosen to assess the effectiveness of

training. The choice of criteria and the design are both made before training is

conducted in order to ensure that training will be properly evaluated. After the

training is completed, the program is then evaluated using the criteria and design

selected.

TRAINING PROCESS FLOW CHART AT ASHOK LEYLAND

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RESEARCH METHODOLOGY

START

Unit KRA / InputFrom HOD’s

Identify training needs

Compile training needs information

Conduct / Organize

Inputs from participants

Analysis the training

effectiveness

Process improvement

Training calendar

/incorporating corporate training

Training calendar

Program feedback

Evaluate the program

Feedback from HOD`S

Review of training

effectiveness

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Process ends

Organize training

1.1 RESEARCH MEANING:

“Research means a search for knowledge”. Sometimes, it may refer to a

scientific and systematic research for pertinent information on a specific topic. In

fact, research is an art of scientific investigation.

1.2 RESEARCH DEFINITION:

According to Webster’s dictionary research is “A careful enquiry or principles

delight in investigation in order to ascertain something”.

1.3 STATEMENT OF PROBLEM:

ASHOK LEYLAND wants to find out the training effectiveness of the executives

and opinion about the existing training activity.

ASHOK LEYLAND wants to know about the requirement and changes to be

brought in the existing training activities.

1.4 PROJECT TITLE:

“A STUDY ON TRAINING AND DEVELOPMENT AT ASHOK LEYLAND”

1.5 OBJECTIVE OF THE STUDY:

1. To identify the training effectiveness in Ashok Leyland at Alwar.

2. To identify whether training enhances their knowledge and skill.

3. To identify the key areas of learning or training to be provided to the

executives.

1.6 DATA COLLECTION:

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While deciding about the method of data collection to be used for the study, the

researcher should keep in mind two types of data viz,

1. Primary Data

2. Secondary Data

The primary data are those which are collected afresh and for the first time, and

thus happen to be original in character. It can be collected through Observation,

Interview, Questionnaires, consumer panels, etc.

Primary Data—

Questionnaire was designed and then data was collected from the executives.

Secondary Data—

The secondary data, on the other hand, are those which have already been

collected by someone else and which have already been passed through the

statistical process. In this case, nature of data collection work is merely that of

compilation. Like Company records, company websites, company journals and

following sources-

Internet: Data has been obtained from Web sites, Search Engines.

Journals, magazines, books and annual report.

Periodic brochures, and reviews of Ashok Leyland ltd.

Organization

1.7 METHODS OF SAMPLING & SAMPLE SIZE:

Sampling method adopted is convenience method.

Sample Size:

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The sample size taken for the project was 50 Excutives.

1.8 PERIOD OF STUDY:

This project study was conducted during the period from 17th June to 31st July,

2010.

1.9 TOOLS USED FOR ANALYSIS:

Statistical tool used for the project is percentage analysis with pie chart.

1.10 SCOPE OF THE STUDY

The major scope of my study is to identify the major players in the Heavy

Vehicles Market in India. And according to this-

Heavy Vehicles Market in India comprises of trucks, Machines, Ambulances, and

School Buses. The popular heavy vehicle brands in India are Volvo, Eicher, Tata,

Telco, Ashok Leyland, Bajaj Tempo, and Swaraj Mazda.

Following are the major players in the Indian heavy vehicles market:

• Ashok Leyland: A major manufacturer in the Heavy Vehicles Market in India,

Ashok Leyland has been leading in its technology and innovation. Its product

ideas are being utilized by many other commercial vehicle companies. Factories

are located at Bhandara, Hosur, Alwar, and Ennore.

• Eicher Motors Limited: Founded in 1982, Eicher is a leading manufacturer

of trucks and buses. It has technological expertise from Mitsubishi Motors

Corporation of Japan. Its operations are located at Thane and Pitampur.

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• Tata Motors Limited: Began its heavy vehicles manufacture in 1983. In

2005 it manufactured 'Tata Ace' a mini truck. Heavy vehicle brands under its

banner are Novus trucks, Starbus and Globus buses, and defense vehicles.

• Swaraj Enterprise Limited: It is known for its tractor manufacture both in

India as well as USA. Swaraj Mazda Limited was promoted in 1983 and today it

is a large manufacturer of heavy vehicles. Some of its products are school buses,

CNG buses, fire brigades, ambulances, etc.

• Force Motors Limited: Formerly known as Bajaj Tempo Limited, Force had

started operating in 1950 and has been successfully manufacturing heavy

commercial vehicles along with other vehicles since then. Its operations are at

Pithampur and Akurdi.

The heavy vehicles market in India has been reflecting steady growth with the

above mentioned key manufacturers vying to outdo each other in this segment

by constantly trying to upgrade their technology and production processes. With

foreign investments in the Indian vehicle market and world class technology,

India is definitely soaring ahead with its heavy vehicle ventures.

The heavy vehicles market in India has received fiscal incentives from the

government, and with liberalization of automobile policies, India is all set to go

way ahead in this segment.

1.11 LIMITATIONS OF THE STUDY:

1. The study was targeted only to the executives in the company.

2. The period of the study was for a short span of time.

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FACTS AND FINDINGS

1) People are almost satisfied with the training provided at ASHOK

LEYLAND.

2) People feel that the training provided at ASHOK LEYLAND

provides them an opportunities to learn and grow.

3) People at ASHOK LEYLAND prefer external training rather than

internal training.

4) Most of the people say that they find improvement in themselves

after the training.

5) Most of the people find the training standards at ASHOK LEYLAND

good and better when compared to the other companies.

6) The people say that they require more member of training on the

job which they perform to enhance their skills.

7) People find the training as both, an investment and improvement to

the company, where the company invest a lot of amount on the

training which in return leads to improved job performance of the

executives, better quality product and also increases the

organizational bottom line.

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ANALYSIS AND INTERPRETATION

1. Are you satisfied with the training provided to you?

Parameters Respondents

Highly satisfied 0

Satisfied 47

Dissatisfied 2

Highly dissatisfied 1

Interpretation:

94% of the people are satisfied with training, 4% of the people are dissatisfied

and 2% of the people are highly dissatisfied with the training provided at

ASHOK LEYLAND.

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2. How many training do you attend yearly?

Parameters Respondents

Less than 2 15

3 to 4 23

4 to 6 11

More than 7 1

Interpretation:

46% of the people attend 3 to 4 training yearly, 22% of the people attend 4 to

6 training yearly, 30% of the people attend less than 2 training yearly and 2%

of the people attend more than 7 training yearly.

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3. Whenever the training is conducted are you being given prior information

about the topic?

Parameters Respondents

Always 15

Almost always 21

Sometimes 13

Never 1

Interpretation:

42% of the people are almost always given prior information of the topic, 30%

of the people are always given prior information of the topic, 26% of the

people are sometimes given prior information of the topic and 2% of the

people are always given prior information of the topic.

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4. The training provided to you is effective?

Parameters Respondents

Always 7

Almost always 28

Sometimes 15

Interpretation:

56% of the people say that training provided at ASHOK LEYLAND is almost

always effective, 30% of the people say that it is sometimes effective and 14% of

the people say that it is always effective.

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5. Does the trainer communicate effectively? Are you able to cope up with

trainer?

Parameters Respondents

Always 7

Almost always 32

Sometimes 11

Never 0

Interpretation:

64% of the people feel that the trainer almost always communicates effectively,

22% of the people feel that the trainer sometimes communicates effectively and

14% of the people feel that the trainer always communicates effectively.

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6. Are you satisfied with the training aids used in the training?

Parameters Respondents

Highly satisfied 3

Satisfied 45

Dissatisfied 2

Highly dissatisfied 0

Interpretation:

90% of the people are satisfied with the training aids, 6% of the people are highly

satisfied with the training aids and 4% of the people are dissatisfied with the

training aids used in the training.

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7. While the training is provided do you feel that you have been given proper

attention?

Parameters Respondents

Always 17

Almost always 26

Sometimes 9

Never 0

Interpretation:

52% of the people feel that almost always they have been given proper attention,

34% of the people feel that always they have been given proper attention and

18% of the people feel that sometimes they have been given proper attention.

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8. Does the training help you to attain you standards set?

Parameters Respondents

Always 10

Almost always 21

Sometimes 17

Never 2

Interpretation:

42% of the people say that training almost always helps to attain their standards,

34% of the people say that training sometimes helps to attain their standards,

20% of the people say that training always helps to attain their standards and 4%

of the people say that training never helps to attain their standards.

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9. Does the training provide an opportunity at work to learn and grow?

Parameters Respondents

Always 22

Almost always 19

Sometimes 9

Never 0

Interpretation:

44% of the people say that training provided at ASHOK LEYLAND always

provide them an opportunity to grow and learn, 38% of the people say that

almost always it provides them an opportunity to grow and learn and 18% of the

people say that sometimes it provides them an opportunity to grow and learn.

54

10. Do you find any improvement in yourself after the training?

Parameters Respondents

Yes 47

No 3

Interpretation:

94% of the people say that they can find improvement in themselves after the

training, where 6% of the people say that there is no change or improvement in

themselves after the training.

55

11. Are you able to retain the information which is provided to you in the training?

Parameters Respondents

Always 16

Almost always 23

Sometimes 11

Never 0

Interpretation:

46% of the people say that almost always they are able to retain the information

provided to them in the training, 32% of the people say that always they are able

to retain the information provided to them in the training and 22% of the people

say that sometimes they are able to retain the information provided to them in the

training.

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12. After the training, were there any test or activity conducted based on the

training?

Parameters Respondents

Yes 14

No 25

sometimes 11

Interpretation:

50% of the people say that there is no test or activity conducted based on the

training, 28% of the people say that proper test have been conducted based on

the training and 22% of the people say that sometimes they conducted test or

activity based on the training.

57

13. Do you get proper feedback from your HODS or HR after the training

evaluation?

Parameters Respondents

Always 8

Almost always 12

Sometimes 22

Never 8

Interpretation:

44% of the people say that sometimes they get feedback from their hod’s after

the training evaluation, 24% of the people say that almost always they get

feedback, 16% of the people say that never they get feedback and 16% of the

people say that always they get feedback.

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14. What type of training do you prefer?

Parameters Respondents

Internal 7

External 38

Both 5

Interpretation:

76% of the people say that they need only external training, 14% of the people

say that they need internal training and 10% of the people say that they need

both type of training.

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15. What type of management games do you prefer?

Parameters Respondents

Team building 29

Communication 5

Leadership 11

Other 5

Interpretation:

58% of the people say that they need team building games in the training, 22% of

the people say that they need leadership games, 10% of the people say that they

need communication games, 10% of the people say that they need all the type of

games in the training to enhance them for their future.

16. How many projects have you completed successfully after the training?

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Parameters Respondents

None 22

1 – 2 18

3 – 5 6

More than 5 1

In progress 3

Interpretation:

44% of the people have not completed any projects after the training, where,

36% of the people have 1-2 projects, 12% of the people have completed 3-4

projects, 6% of the people say that there projects are in progress and finally 2%

of the people have successfully completed more than 5 projects after the training.

17. Do you find training as an improvement or as an investment to the company?

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Parameters Respondents

Improvement 26

Investment 6

Both 18

attachments_2010_12_10.zip

Interpretation:

52% of the people find training as an improvement to the company, 36% of the

people find training as both improvement and investment and 12% of the people

find training as an investment to the company.

18. How do you find the training standards at other companies when compared

to ASHOK LEYLAND?

Parameters Respondents

Good 28

Better 10

Average 5

No idea 7

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Interpretation:

56% of the people feel that the training provided at Ashok Leyland is good, 20%

of people feel it is better, 14%of the people say they have no idea and 10% of the

people feel it is average and not best.

SWOT ANALYSIS

A detailed performance analysis sets the stage for conducting a swot

analysis . SWOT analysis is an abbreviation for strength , weakness ,

opportunities and threats. SWOT analysis is an important tool for auditing

the overall strategic position of a business and its environment. Once key

strategic issues have been identified, they feed into business objectives ,

particularly marketing objectives. SWOT analysis can be used in

conjunction with other tools for audit and analysis.

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Strength and weakness are internal factors. Strength could be a firms

specialist marketing expertise. A weakness could be the lack of a new

product.

Opportunities and threats are external factors. An opportunity could be a

developing distribution channel such as the internet or changing consumer

lifestyle that potentially increase demand for a company’s product. A threat

could be a new competitor in an important existing market or a

technological change that makes exhausting products potentially obsolete.

The external factor , environment be it the macro environment . Customer

or competitor groups , is contently in a state of flux. A change by itself is

neither an opportunity nor a threat. I t only becomes so , in relation to an

organization strength or weakness . What may represent an opportunity

for a particular firm . May in fact pose a serious threat to the survival

to the yet another firm in the industry . For instance deregulation of the

telecom industry was an opportunity for private sector firms , which had the

monetary and managerial resources to leverage this opportunity . Existing

public sector saw this threat, as it meant the end of their protected

monopolies.

SWOT analysis can be very subjective two people rarely come-up with

the same version of a SWOT analysis even when given the same

information about the same business and its environment .Accordingly,

SWOT analysis is best used as a guide a and not a prescription . Adding

and weighing criteria to each factor increase the validity of the analysis.

AREAS TO CONSIDER:

Strength:-- Technical skills , strong brands , distribution channels , customer

loyalty , high customer retention , scale , organization work culture ,

employee satisfaction and retention .

Weakness:--Absence of skills critical to the industry , weak access to

distribution channels , low customer retention are just some of them.

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Strength includes:

Cost advantages

Financial Resources

Customer’s loyalty

Patent

Weakness includes :

Narrow product line

Lack of management depth / skills

Weak market image

By cost operation due to high labor cost.

An opportunity includes:

Add new product line

Enter in new market

Introduce a new capability

Acquire firm / company with needed technology.

Threats include:

Shifting the budget tastes or preferences

Entry of new rivals or competitors

Unfavorable government policies

INFRENCE

As the analysis shows that the company is having capabilities to

complete on the basis of technology available, qualified manpower. They

have good market potential and resources in their hand also.

SWOT analysis helps the company to evaluate it self on the present

ground and gives them and idea for the future prospects by removing

their weakness and strengthening their opportunities

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SWOT ANALYSIS is very essential for any type of organization, it help

knowing the competitive situations regarding the relevant product of the

concern.

At last we can say that SWOT analysis is very useful in getting the

desired objectives of any concern and surviving the competitive market.

CONCLUSION

To conclude, there were many things that I have experience and learned during

the one and half month of my Summer Training at ASHOK LEYLAND. The whole

training period was very interesting, instructive and challenging. Through this

training I was able to gain new insights and more comprehensive understanding

about the real industry working condition and practice. All of these valuable

experience and knowledge that I have gained were not only acquired through the

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direct involvement in task given but also through other aspects of the training

such as work observation, interaction with colleagues, superior etc. These kinds

of training would helps us to develop our career in future.

SUGGESTIONS

The training needs of the all the people/training need analysis should be

identified yearly from their HOD’s and a training calendar should be

prepared based on the identification.

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All the executives should attend atleast 3-4 training in a year so that the

executives can be improve their knowledge and skills with the changing

environment.

The trainees should be given prior information about the topic on which

they are going to attend the training so that they can understand the

benefits of the training.

More no. of training should be provided to the executives based on the

technological changes to enhance their knowledge and skills so that they

help the company and provide competitive advantage.

The training evaluation should be done effectively by the Hods after the

training. One group time series evaluation can be done that is a test

before and after the training so that the company can identify the

competitive employees and then try to retain them.

Any test or activity should be conducted to identify their understanding on

the training which they have attended and also to retain the information.

The trainee should receive Proper feedback from their Hods after the

training evaluation so that they can improve themselves.

Team building and leadership kind of training should be provided to the

executives.

Some of the training preferred by the executives are:

a) Supply Management

b) Costing system, ERP & SAP

c) ED & PLC Training

d) FMEA, PPAP, APQP

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e) SPC, MSA, Welding Management

f) TS 16949

g) TQM & TPM

QUESTIONNAIRE

1. Are you satisfied with the training provided to you?

a) Highly satisfied b) satisfied c) dissatisfied d) highly dissatisfied

2. How many training do you attend yearly?

a) Less than 2 b) 3-4 c) 4-6 d) more than 7

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3. Whenever the training is conducted are you being given prior information

about the topic?

a) Always b) almost always c) sometimes d) never

4. The training provided to you is effective?

a) Always b) almost always c) sometimes d) never

5. Does the trainer communicate effectively? Are you able to cope up with

trainer?

a) Always b) almost always c) sometimes d) never

6. Are you satisfied with the training aids used in the training?

a) Highly satisfied b) satisfied c) dissatisfied d) highly dissatisfied

7. While the training is provided do you feel that you have been given proper

attention?

a) Always b) almost always c) sometimes d) never

8. Does the training help you to attain you standards set?

a) Always b) almost always c) sometimes d) never

9. Does the training provide an opportunity at work to learn and grow?

a) Always b) almost always c) sometimes d) never

10. Do you find any improvement in yourself after the training?

a) Yes b) no

11. Are you able to retain the information which is provided to you in the training?

a) Always b) almost always c) sometimes d) never

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12. After the training, were there any test or activity conducted based on the

training?

a) Yes b) no

13. Do you get proper feedback from your HODS or HR after the training

evaluation?

a) Always b) almost always c) sometimes d) never

14. What type of training do you prefer?

a) Internal training b) external training

15. What type of management games do you prefer?

a) Team building b) leadership

c) Communication d) others……….

16. How many projects have you completed successfully after the training?

17. Do you find training as an improvement or as an investment to the company?

18. How do you find the training standards at other companies when compared

to ASHOK LEYLAND?

REFERENCES

1) Pandu Nayak, “Training and Development”

2) Tata Mc Graw-Hill Publishing Co Ltd Third Reprint 2006(edition)

K. ASWATHAPPA, Human Resources and Personnel

Management Delhi.

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3) Buckley R & Caple, Jim, The Theory & Practice of Training,

London, Kogan.

4) Pepper, Allan D, Managing The Training and Development

Function, Aldershot, Gower, 1984.

5) Patrick J.Montana and Bruce H. Carnov (2000). “Training and

Development”. Management. Barron’s Eductional Series.

6) Thomas N. Garavan, Pat Costine, and Noreen Heraty (1995).

“Training and Development: Concepts, Attitudes and Issues”.

WEBSITES:

www.ashokleyland.com

www.wikipedia.com

www.traininganddevelopment.com

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