REPORT Prakash

7/31/2019 REPORT Prakash

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ON THE JOB TRAINING

IN

HI-TECH ARAI PVT LTD

MADURAI

A report submitted by department of Business Administration

In partial Fulfillment Award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted By

S.PRAKASH KUMAR

Exam No: 10UA28

Roll No: 101028

Under the Guidance of

Dr.C.JOTHIBASKARAMOHAN,M.B.A,M.SC,M.PHIL,PH.D

DEPARTMENT OF BUSINESS ADMINISTRATION

THIAGARAJAR COLLEGE (AUTONOMOUS)

Re-accredited with A grade by NAAC

139/140, Kamarajar salai,

Madurai-625001


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THE JOB TRAINING

IN

HI-TECH ARAI PVT LTD

MADURAI

A report submitted by department of Business Administration

In partial Fulfillment Award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted By

S.PRAKASH KUMAR

Exam No: 10UA28

Roll No: 101028

Under the Guidance of

Dr.C.JOTHIBASKARAMOHAN,M.B.A,M.SC,M.PHIL,PH.D

DEPARTMENT OF BUSINESS ADMINISTRATION

THIAGARAJAR COLLEGE (AUTONOMOUS)

Re-accredited with A grade by NAAC

139/140, Kamarajar salai,

Madurai-625001


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DECLARATION

I hereby declare that the on the job training report at HI-TECH ARAI PVT LTD Submittedto the thiagarajar college for the award of business administration is my original work and hasnot been submitted for any degree , diploma or certificate of this university or any other

university

Date: S.PRAKASH KUMAR

Place:


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ACKNOWLEDGEMENT

I am very much indebted and thankful to the principal

Dr. A. Thamaraichelvam M.S.c., M.Phil., Ph.D., who was been guiding force behind

us in executing every step of my on the job training

I would like to thank Dr. Rajasekar, MBA., M.phil., Ph.D., head of the departmentof business administration , Thiagarajar college for the substained interest in my

On the job training.

Next I thank my Dr.C.JOTHIBASKARAMOHAN,M.B.A,M.SC,M.PHIL,PH.D

Also want to thank my department professors and college lecturers for helping

me in completion of my project work.

My hearty thanks to HI-TECH ARAI PVT LTD , MADURAI for giving thisgolden opportunity to do my on the job training.


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CERTIFICATEThis is to certify that S.PRAKASH KUMAR 101028doing II BBA in thiagarajar college hasundergone on the job training at HI-TECH ARAI PVT LTD and it is the original work done byhim for the award of Bachelor of Business Administration of the university or any other

university.


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DATE Dr.C.JOTHIBASKARAMOHAN,M.B.A,M.SC,M.PHIL,PH.D

Place: Faculty Guide


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Profile of the Industry

Prospects

Association

Quality

Exports

Profile of Hi-Tech Arai Pvt Ltd Madurai

Mission

Vision

Quallity & Environmental Policy

Milestones

Company Products

Profile of Products

Competitors of Hi-Tech Arai


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Introduction to Financial Performance Analysis

Investments in Industry

Industry Turnover

Accounts Department

Function

Marketing Department

Sales Department

Purchase Department

Human Resource Department

Training Measures

HRD measures

SWOT Analysis

Systems Department

EDP/ ERP department

Internet and Intranet

Development Center

Excise Department

Engineering Department

Quality Management Department


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5s Quality Principle

Seiri

Seiton

Seiso

Seiketsu

Shitsuke

CHAPTER 1

PROFILE OF THE INDUSTRY

THE INDIAN AUTO ANCILLARY INDUSTRY

The Indian auto ancillary industry is one of India's sunrise industries with tremendous

growth prospects. The automotive industry is an important segment of the economy in any

country as it links many industries and services. The Indian auto industry has the potential to

emerge as one of the largest in the world.

Presently, India is:

The largest two-wheeler manufacturer in the world. The largest three-wheeler market in the world. The second-largest two-wheeler market in the world. The fourth largest commercial vehicle market in the world.

The fortunes of the automotive components segment are linked to the performance of the

auto industry. The auto ancillary industry gives support to sectors such as metals that includessteel, aluminum, copper and also to many other machine tools, plastics, rubbers, polymers, glass,

surface transport. As per Indian Suppliers report, The automotive sector in India contributes to

5% of the nation s GDP and 17% of the indirect taxes as a result of which the government last

year charted a 10- year blueprint for the sector s growth. This e nvisages the automotive sector

output reaching a level of $145 billion accounting for more than 10% of the GDP by


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2016.Indian auto industry has evolved around three major clusters: Mumbai-Pune-Nasik-

Aurangabad (west); Chennai-Bangalore-Hosur (south); and Delhi-Gurgaon-Faridabad

(north).Export-oriented companies have formed base in the west/ south regions, due to proximity

to port.

PROSPECTS

Looking forward, the industry displays tremendous potential in generating employmentand boosting entrepreneurship in the country. The spate of new investment plans announced by

global and domestic automobile manufacturers promises the emergence of India as a global hub

for auto components. The industry is transforming, and the boost in demand will see the

emergence of several new players in the industry. The vast market for auto components, and the

diverse products and technology involved ensures a place and role for many. At the same time,

the entry of several global automobile manufacturers will bring in more regulation into the

industry and see a pruning of the spurious market. Among the smaller players in the unorganized

segment, this implies moving away from being standalone companies, to entering into either

contract manufacturing or being ancillary units. The newly defined rules are specialization,

development and delivery that hold the key to success in the auto component industry.

ASSOCIATION

The Automotive Component Manufacturers Association of India (ACMA) is the nodal

agency for the Indian Auto Component Industry. It's active involvement in trade promotion,

technology up-gradation, quality enhancement and collection and dissemination of information

has made it a vital catalyst for this industry's development.

Its other activities include participation in international trade fairs, sending trade delegations

overseas and bringing out publications on various subjects related to the automotive industry.

ACMA is represented on a number of panels, committees and councils of the Government of


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India through which it helps in the formulation of policies pertaining to the Indian automotive

industry. ACMA represents over 600 Companies, whose production forms a majority of the total

auto component output in the organized sector. In the domestic market, they supply components

to vehicle manufacturers, Tier-1 Suppliers, to state transport undertakings, defense

establishments, and railways and even to the replacement market. A variety of components are

being exported to OEMs and aftermarket worldwide.

Quality

The industry has been making rapid strides towards achievement of world-class QualitySystems by imbibing ISO 9000/ISO14001/QS 9000/TS16949 Quality Systems. Till now 562

companies in ACMA membership have been certified to ISO 9000, 208 companies awarded to

ISO14001, 445 companies have been certified with TS16949, 99 companies have been certified

with OHSAS18001, 15 Companies have won TPM Award, 11 Companies won the Deming prize

1company won Japan Quality Medal, 1company won Shingo Silver Medallion and 3 companies

won the JIPM Excellence award.

Exports

The industry has been exporting around 13% of its output. In the year 2009-10, industry hasexported US$ 3.8 billion. Principal export items include replacement parts, tractor parts,

motorcycle parts, piston rings, gaskets, engine valves, fuel pump nozzles, fuel injection parts,filter & filter elements, radiators, gears, leaf springs, brake assemblies & bearings, clutch

facings, head lamps, auto bulbs & halogen bulbs, spark plugs and body parts.

PROFILE OF HI-TECH ARAI PVT LTD MADURAI

Hi-Tech Arai Ltd is a Madurai based oil seals and automobile components manufacturing

company. Having joint venture with Arai Seisakusho co Ltd Japan and Mitsubishi Corporation,

Japan. The company previously called as Hi- Tech ancillaries ltd after joint venture with Arai

Seisakusho co ltd, the company name has changed to Hi-tech Arai ltd. The company was


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established to produce rubber components and oil seals for the world famous companies

likeMaruti Suzuki, Bajaj, TVS, Honda, Yamaha, Toyota, etc. The company was founded by

Mr.R.Lakshmi Narayanan, with the capital of Rs.4.5 lakhs and with the manpower of 75 as a

family owned concern. Mr. B.T.Bangera and Mr.R.Lakshmi Narayanan both were the ex-

employees of Fenner (India) ltd. Their good relationship made them to form this great venture in

1985. Later the company entered into technical collaborations with m/s Mitsubishi Japan and

with Arai Seisakusho ltd

Japan for manufacture of oil seals, O-rings, reed valves, molded rubber product, valves stem

seals etc in1987. The percentage of collaboration is 88.84% for Arai Seisakusho Ltd and14.29%

for Mitsubishi Corporation.

Growing and achieving excellence through people is the motive of the organization. The core

belief is that it is possible to achieve zero defects and achieve leadership in the market. Thecompany also owns 23 wind mills each with the capacity of producing 11 MW power. Hi-Tech

Arai is the only manufacturer of reed valves in India. I-Tech Arai is controlled by 9 boards of

directors. Among them

3 Promoter Directors 5 Directors from Arai Seisakusho Ltd 1 Director form Mitsubishi Corporation

MISSION:

To produce high quality products

At competitive prices

Combined with on-time delivery

Strictly adopting environmental friendly processes.

VISION:

1993: Market leader in the country in 5 years


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1997: One of the top 3 in the world and in the field of Oil Seals

2007: To become the preferred supplier of all customers

2010: Aims to touch 400 corore turn over by overtaking the past one of 294 corore

QUALITY & ENVIRONMENTAL POLICY

Strive for continual improvement of our quality performance by meeting the changingrequirements of our customers and our environmental performance by prevention of pollutionand maintenance of wastes.

Manufactures high quality products at competitive prices by adhering to thesystem, processes and procedures and continually improving the same.

Promote energy savings and conservation of resources.

Comply with all applicable legislative, regulation and other requirementsincluding those that apply to environmental aspects governing our activities.

Achieve the above by creating awareness among our employees throughproper training and providing conductive work environment.

MILESTONES:

1985: Hi-Tech Ancillaries was registered.

1986: First unit in Tanakkankulam was started.

1987: Technical collaboration with Arai Seisakusho Company Ltd, Japan.


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1990: Totally professionalized.

1991: Second unit in Trichy was started.

1991: Awarded best SSI unit in the District.

1992: Awarded best SSI unit in the State.

1993: Third unit in K Pudur was started.

1994: Joint venture with Arai Seisakusho & Mitsubishi Corporation, Japan.

1994: Hi-Tech Ancillaries changed to Hi-Tech Arai Ltd.

1995: New compounding unit in Kappalur.

1995: Fourth unit in K Pudur.

1997: Fifth unit in K Pudur (dedicated to MUL)

1999: Most modern factory at K Pudur.

2000: Won 1stprize on quality circle convention at state level & regional Level.2000: Madurai jasmine quality circle (National level)

2000: Initiation of Environment Management System certification Program &obtained

the certification in July

2001: White rose quality control won1st prize in state level & national Level.

2001: Quality award from Lucas TVS Ltd.

2002: Award from Keihin Lie Ltd Pune for cost optimization.

2003: Awarded best SSI unit in the State Level.

2003: The Company was accredited ISO 9001:2000

Certification

2005: CII & APAC awarded Best Industry practicing the HIV/AIDS Prevention for its

Aids prevention and control project.

2006: First Export order from China.

2008: Received ISO TS-16949:2002.

2010: Himalaya quality circle of Hi-Tech Arai ltd won the Par Excellence Award in the

national convention on quality concepts-2010held at Visakhapatnam.

Company products:

Oil seal


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- Circular products having round cross-section or any customers

specified sectional from which just fits in assemblies (pumps,

carburetors etc) to avoid or stop leakage of fluid gas from thesystem.

c) Reed Valve Assembly:

- Reed valve assembly is used in all modern two stroke engines as

a device to control over air fuel mixture sent into the engine

combustion chamber.

- It is used for fuel efficiency and optimum output.

- Reed valve assembly ensure complete combustion of fuel inside

the engine combustion chamber for avoiding emission of

unburned gases thereby contributing towards pollution control.


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c) Join carburetor:

It is a device that blends air and fuel for an internal combustion

engine

The carburetor works on Bernoulli's principle: the faster air moves, the lower its staticpressure, and the higher its dynamic pressure.

d) Moulded Rubber Products:

- Moulded rubber products are the products developed to suit

the specifications and design of customers, so as to meet the

exact working conditions of particular model of vehicles.

- Usually the moulded rubber products reduce the noise, stroke

vibrations and protect certain other components from dust,


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water, oil etc.

- The company is the single source of supply for moulded products throughout thecountry.

COMPETITORS OF HI-TECH ARAI :

o Fenner India

o C.R. Seals

o Sigma Freudenburg NOK Seals.


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CHAPTER 2

INTRODUCTION TO

FINANCIAL PERFORMANCE ANALYSIS

The performance of the firm can be measured by its financial results, i.e., by its size of

earnings Riskiness and profitability are two major factors which jointly determine the value of

the concern. Financial decisions which increase risks will decrease the value of the firm and on

the other hand, financial decisions which increase the profitability will increase value of the firm.

Risk and profitability are two essential ingredients of a business concern. There has been a

considerable debate about the ultimate objective of firm performance, whether it is profit

maximization or wealth maximization. It is observed that while considering the firmperformance, the profit and wealth maximization are linked and are effected by one-another. A

company s financial performance therefore is normally judged by a series of ratios or figures,

however there are following three ratio parameters which can be used to evaluate financial

performance, they are:

a) Return on Equity

b) Earnings Per Share and

c) Price Earnings Ratio.

All three parameters are discussed in detailed along with various other ratios. However, it

is to be noted that fundamentally, the balance sheet indicates the financial position of the

company as on that point of time. However, profit and loss account is a statement, which is

prepared for a particular financial year. In Indian context, where an analyst has to rely upon theaudited financial statement for a particular company, the performance is to be judged from the

financial statement only. This chapter, however indicates some of the techniques, which can be

used for such analysis of financial performance.


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INVESTMENTS IN INDUSTRY

Foreign Investments:

India enjoys a cost advantage with respect to casting and forging as

manufacturing costs in India are 25 to 30 per cent lower than their western counterparts. Seeing

the growing popularity of India in the automotive component sector, the Investment

Commission has set a target of attracting foreign investment worth US$ 5 billion for the next

seven years to increase India s share in the global auto components market from the existing 0.9

per cent to 2.5 per cent by 2015.

French type major, Michelin, has gained clearance from the Foreign Investment

Promotion Board (FIPB) for its US$2.26 billion foreign direct investment (FDI) proposal to set

up a manufacturing facility in Tamil Nadu. Ford motor car is investing about 500$ million (Rs. 2,445 crores) to double

capacity at its India plant, which will become a strategic global production hub.

Bosch will continue to maintain its focus in India in spite of global recession as it

is planning to set up manufacturing units for electronic control units (ECU) by investing US$

26.76 million.

Renault in association with Nissan is to source USD 440 million worth of auto

components from India in the coming years.

Italian car manufacturer Fiat is planning to increase sourcing to USD 330 million

by 2010 and make India its global sourcing center.

Volkswagen has set target to capture 8-10 percent of market share in the

passenger car segment in India by 2014with a series of launches and by doubling the number of

dealers.


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Domestic Investments

The market is so large and diverse that a large number of players can be absorbed

to accommodate buyer needs. The sector not only has global players looking to invest and

expand but leading domestic component companies are also pumping in huge sums into

expanding operations. Indian tyremakers are rolling out investment plans worth US$ 1.24

billion, due to the rising popularity of radial tyres in the commercial vehicles segment. Some

other investments include:

Hero Motors will invest US$ 19.84 million in association with Austrian firm BRP

Power train for manufacturing automotive transmissions in India.

Indian arm of Swedish automotive component maker SKF is investing US$ 30

million in a new ball bearings manufacturing plant at Haridwar.

Mahindra & Mahindra will invest approx US$ 400 million for setting up an

integrated auto facility in Tiruvannamalai (Chennai).

An auto park is coming up near Hyderabad with investments worth over US$

409.30 million from around 34automotive ancillary units. Lower labour costs give Indian auto

ancillary companies an absolute cost advantage. ACMA numbers suggest that wage cost

accounts for 3% to 15% of revenues for Indian manufacturers as compared to 20% to 40% for

US players. Historically, India s strength in exports lies in forgings, castings and plastics. But

this is changing with more component manufactures investing in up gradation of technology in

recent years.


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INDUSTRY TURNOVER

The Indian organized auto ancillary industry revenue grew 6% yoy to INR720bn in

FY09. Exports increased by 6% yoy to INR150bn. The recent financial performance of auto

ancillary companies with a greater reliance on OEMs and exports has been inferior to those with

a larger focus on the replacement market. Yet, replacement stocks haveunderperformed.

Despitethe recent rise in commodity prices, the average price for FY10f to be lower yoy. This

would provide little benefit to theOEM dependent stocks, while the stronger INR is likely to hurt

exports.Replacement stocks are likely to retain the savings from decreased material prices and a

risingINR. Profitability may improve for both groups, but replacement stocks are more likely to

outperform over the medium term as the market appreciates their stronger position.


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CHAPTER 3

ACCOUNTS DEPARTMENT

In British English included United Kingdom company law, financial statements are often

referred to as accounts although the term financial statement is also used, particularly byaccounts. The accounts department records, processes and maintains various financial aspectsand activities of the organization. This department is headed by Senior Manager,Mr.Lakshmanan. Financial statement provides an overview of a business financial condition inboth short and long term. There are four basic financial statements

Balance sheet.

Income statement.

Statement of retained earnings.

Statement of cash flows.

The major functions are as follows.

Accounts Receivables.

Accounts Payables.

Purchase Accounting.

Sales Accounting.

General Accounting.

Fixed Assets Register.

Activity Base Costing.

All general cash flow movements.

Maintaining cash flow movements in both Purchase and Sales.

Deciding mode of payments.

Capitalization, Machinery accounts progress.

Processing of Sales Tax & Excise Duty.


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Filing of Quarterly TDS returns.

Processing Salary & Labour contract accounts.

In HI- TECH ARAI they are following three main function is

General accounts.

Purchase accounts.

Sales accounts.

1. General Accounts:

The main functions of general accounts is

Accounts receivabl

Accounts payable

In general accounting they have the details about insurance, E.B, petty cash, allocation &

reimbursement of petty expenses also made.

Functions:

Cash flow statement

Taxation

Final account


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Purchase Order:

Before purchase the raw material they give quotation or analyze the supplier (i.e.)

their quality, quantity, price, timely delivery based on that they give the order to purchase.

Goods Received Notes (GRN):

First they verify the delivery Chalan. If the raw materials are entered the industry, then

they have to entered the details of the raw material to the goods received note. The HI-

TECHARAI pays the payment for the importers through the bank only.

Tax Details for Import as well as Indigenous purchase:

BED (Basic Excise Duty)

VAT (Value Added Tax)

Based on the quantity of the Material/Product 8%

Based on the Value of the Material/Product 10%

Educational Cess 2%

Higher Educational Cess 1%

3. Sales Account:

Original equipment sales

Raw material sales

Export sales

Export oriented sales The 92% of sales done through OE market. For sales 30-45 days

were given as credit period. They export only 2 % of total production; the turnover of exported

materials comes to 70 to 80 lacks per year. They also update the payment cheque received from


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sales department Their one of the major function is receiving order & schedules it. They also

find whether the payment is made or not and also handle the pending bills.

1.Original Equipment Sales:

According to the requisition (drawing) of the customer the HI- TECH ARAI company

design and produce the goods.

2. Raw Material Sales:

To replace the sales against the dealers. The dealers only responsible for the payment.

3. Export Sales:

They export their product to other countries. Ex: Japan, Indonesia, China for exporting

items no need to pay any customs duty.


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CHAPTER-4

MARKETING DEPARTMENT

Purchase Department:

Purchasing refers to a business organization attempting to acquire goods or service to

accomplish the goals of the enterprise. Through there are several organizations that attempt to set

standards in the purchasing process. Processes can vary greatly between organizations. Typically

the word PURCHASING is not used inter changeably with the word PROCUREMENTsince

procurement typically include expediting, supplier quality, traffic and logistic (T&C) in addition

to purchasing.

Functions:

- Identify the needs and wants.

- Select the suppliers.

- Place the order.

Activity:

There are two types of purchase activity.

- Centralized Purchase Activity

- Decentralized Purchase Activity


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Kinds Of Purchase:

o The purchase unit is a centralized unit responsible for the purchase of all materials

required for production. The purchase can be classified into 4 categories based on

nature of purchase.

- Indigenous - Purchase of locally made material

- Imports - Import of required material

- Engineering Purchase - Purchase of machinery

- Packing Material Purchase - Purchase of material required for Packing.

Raw Material Purchase:

The company is very keen that all the raw material should be purchased from approved

suppliers. The detailed steps involved in Raw Material Purchase are as follows

Based on the Sales forecast of the current financial year the quantity of sales is arrived

and it is converted into compound and compound is converted into raw material thus

theraw material requirement for the year is arrived.

Raw material requirement will be compared with the existing stock position at stores.

Compounding & Respective production Units and also at bounded ware houses at

Chennai (Imported items).

Minimum ordering quantity and period is arrived by ABC analysis hand currently they

have the following purchase schedule.


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Type of purchase/

ClassA B C

Imports 1.5M 4M 6M

Indigenous 10D 1M 3M

A - Goods having around 80% in terms of value.

B - Goods having around 15% in terms of value.

C - Goods having around 05%in terms of value.

D - Days.

M - Months.

- After considering the stock % the actual requirement for the month,

enquiry for required materials will be sent to suppliers.

- Quotations received from the suppliers will be compared in respect of

the price charged, Lead time, quality & the credit period offered.

- Sample lots are ordered & on approval from the Quality Assurance

Department the source is finalized.

- After finalizing the source confirmed Bulk purchase order will be

issued to the supplier with the indication of delivery schedules.

- Regular follow up for getting the material will be made based on the

emergencies.


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- Materials required for development purpose (Small Quantity) will be

procured based on the indents by the Technical Centre.

Other Major Functions:

Obtaining purchase indent from every unit. Scheduling purchase. Selection of suppliers based on quality & quantity Marketing. Cost estimation & Negotiation.

Allotment of scheduled order to supplier. Decision of Mode of Transport. Receiving & Dispersion goods to required units. Vendor development activities. Cost saving at sources.

SALES DEPARTMENT:

The Sales Department is classified into two based on the nature of customer they handle.

They are Original Equipment (OE) Sale & Replacement Marketing (RM) Sales.

1. OE Sales

The major part of the turnover (around 90%) is through OE market. The company gets

into a legal binding with OE customers (new product) which states that the parts supplied to OE

should not be released in the replacement market for the next 2-3years, etc. and the major

customers are.


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Hero Honda

Maruti Udyog Ltd.

Bajaj Group

TVS Motor

Endurance

2. RM Sales

The Replacement Marketing Sales is done to the retail end Customers and is headed by

Mr.C.V.Chidambaram, Manager, RM sales;

this is done through authorized regional distributors. This department runs the business in

complete cash and carry method. The packing & dispatch activities of the RM sale is done

through a depot. This RM Sales department has been recently shifted to Kappalur Unit. Other

major customers are:

Piagio (Italy)

Indore (France)

Ashok Leyland Limited

Birla Yamaha(Japan, India)

Automotives Axles Ltd

Escort Ltd

Gabriel India Ltd


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CHAPTER 5

HUMAN RESOURCE DEPARTMENT

The HR department is headed by Mr. N. Sankaravelayudham, DGMHR, controls and

monitors the processes involving the human resource related activities throughout the

organization. HR activities include:

Recruitment and training for new employees.

Allocation of employees for various departments and units.

Process any employee related problem. Employee performance management.

Culture Building.

Formulating Organizational Strategy.

Library maintenance.

Promote learning circles.

Maintain audit and process employee related data like attendance, salary and

other specific functions related to HR management.

Man Power Planning:

There are two types of man power involved in the Company they are,

Company Staff Contract Labor

In both the cases the man power request is made by the concerned UNIT HEAD and the

HRD HEAD would sanction the same with the approval of the Managing Director. For contract


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labour the interview is made by the unit persons but for the company staff in addition to unit

persons the head office persons will also conduct interview. One important aspect is that the

company would give preference to the people who are approaching with the reference of the

existing employees. The company started its operations with manpower of around 75 and now it

has manpower of around 1000.

Training Measures:

The first and the fore most of the Training measures are to identify the training needs of

the employees in systematic manner and provide relevant training. The same is done in the

following method.

Training requirements are identified with performance appraisal form.

Training need of the operators is identifies by the supervisors.

List of required training is received by the HRD from various sources.

Training Budget is made by HRD and is approved by the MD.

Then Training Schedule is prepared.

List of Internal & External faculties is maintained by the HRD and is approved by the

MD.


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All the employees of the company should attend at least 32 hours of training program in a

year.

In case a particular employee is not able to attend the given schedule of training an

alternate schedule would be given.

On completion of the training program Training Feed Back Questionnaire is circulated to

arrive at various decisions regarding the next training program.

Training evaluation questionnaire is made to assess the impact on the employees and it is

filed in the employees personal file and is maintained till their presence in the

organization.

HRD measures:

1. HRD Practices:

Team Building.

Transparency in decision making

Developing Leadership.

Facilitating Team Work.

Counseling for Addicts.


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2.Culture Building:

Transparency.

Change in attitude toward the self & work to unfold the inner potentials.

Committed work force.

More emphasis on team work to get maximum outputs.

Own the whole family.

3 . Welfare Measures:

Twice Coffee or Tea is provided to their workers in each shift but in

summer additionally buttermilk is provided.

Two uniforms per year for each confirmed workers.

In case of family planning operation Rs 500 is provided.

Two soaps to be provide for workers

Accident compensation is provided.

Conducting sports & games program once in a year.

Forming quality circles for their workers & providing counseling to their

familymembers.

Sudden visit by the MD to the production units to know the workers grievances.


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4. Quality Circle:

Its main function is to facilitate Process Control, Mutual & Self Development

of Employees, Improvement of their Workplace & Productivity by full

participation of allmembers. QC is conducted regularly once in a week and they

will conduct this meeting.

To contribute to the improvement and development of the organization.

To respect humanity and to build worthwhile lives and cheerful work areas.

To give fullest recognition to human capabilities and to draw out each

individual s finite potential.

SWOT Analysis:

1. Strength:

This company is the Indian Market Leader in oil seal manufacturing.

The company has a very good reputation for its products.

The company has a very good internal customer satisfaction.

Japanese technological collaboration is the biggest strength of the company.


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2. Weakness:

In case of shell manufacturing around 50 to 60 percent of the input (steel) wasted.

In case of moulding the company wastes around 30 to 40

percent of the rubber compound which is an imported one.

2. Opportunities:

The company can become the World Market Leader in the near future.

The rubber waste can be converted into a motor belt with slight modifications

inthe mould design.

4. Threats:

There is very less promotion opportunity for the operations people.

The starting pay package offered is very low.

Still the company has not entered into new projects to expand by diversification.


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CHAPTER 5

SYSTEMS DEPARTMENT

EDP/ ERP department:

The Electronic Data Processing (EDP) department handles all activities

regardingHardware and software throughout the organization. The Enterprise

Resource Planning (ERP)unit is responsible for coordinating various departments

and plants like Purchasing, DiscreteManufacturing, Inventory, Finance & Order

Management and the technical highlights are as follows.

Main functions of ERP:

Software development and maintenance.

Procurement of hardware and breakdown services.


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System management including allocation of memory and providing

access.

File maintenance.

Virus protection, system crash etc.

Back-up services.

Purchase of computer related consumer goods.

Other functions of ERP:

Working towards profit.

Ensure cost saving from scratch through ABC analysis (activity based

costing)

Internet and Intranet:

Department has both internet and intranet facility.

Limited control is imposed on access.

Transparency is ensured.


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Development Center:

The DC is the most important unit in the organization under the direct administration

of the Chairman.

To monitor all progress & process in all the units of the organization

To act as a window to customer.

Development of new products.

Customer supportive marketing

Solving customer related queries.

To monitor purchase, manufacturing, sales & dispatch activities.

To maintain the quality state of the organization DC is divided into four main

sections.They are

Arai Communication

Drawing Section

Material Section

Marketing Section


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1) Arai Communication:

This section is solely responsible for communication activities with Arai Seisakusho

Ltd. The communication regarding Design, Engineering & Technology of the moulds

and moulding processes are done by this department.

2)Drawing Section:

This section is solely responsible for drafting various design regarding the

productmould and maintaining the same. It is also responsible for recording

engineering changeover activities.

OE Drawing.

Arai Drawing.

Internal Production Drawing.

Shell Drawing.

Profile Drawing.

Customer Reference Drawing.

Spring Drawing.

A3 Drawing.


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3 ) Material Section:

This section handles all the material related aspects related to the

Manufacturingdepartment. The term material means the Compound (Rubber) used for

manufacturingthe end product. Its main functions are as follows.

Deciding the compound for manufacturing.

Analysis of compound used for manufacturing.

Analysis of sample products.

Inspection of quality at all stages.

Auditing test reports of compound used for producing end products

4) Marketing Section:

This section headed by DGM marketing & manager customer support controls allthe

marketing activities of the organization. This section handles all the

customer oriented activities too. The functions of this Department can be described as

follows:

Receiving enquiry from customer end.

Analysis of enquiry and related data.

Feasibility Study.


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Quotation preparation.

Receiving purchase order from customer end.

Ordering mould.

Sample submission to customer with related documents.

Receiving customer end report.

Initiate mass production based on customer report

EXCISE DEPARTMENT

Excise can be defined as an indirect tax imposed and levied by the Central

Governmentof India. It is under the control of Central Board of Excise

& Customs (CBEC).Any goods purchased, manufactured, and sold excise toward the

CBEC.

Functions:

Calculating and maintaining the excise duty.

To file the excise return documents yearly.

To support the periodic audit done by authorities.

The Excise department act in co-ordination with all the other departments in

thematter of excise duties.


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ENGINEERING DEPARTMENT

Engineering department is the only department responsible for engineering

maintenanceactivities in the organization.This is done on the basis of

Breakdown maintenance

Preventive maintenance

Predictive maintenance

Functions:

Solving maintenance problems.

Machine installation, design and production of required spares, jigs &

fixtures.

Spare maintenance and fabrication of required parts.

New plant development.

QUALITY MANAGEMENT DEPARTMENT

This department checks the quality and quantity of the raw material. The

QADepartment is responsible for validation, problem solving & maintaining the

quality aspects of the products and processes. This department is controlled by SGM

Technical and SM qualityassurance. Major functions are.


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Inspection of Moulds, raw materials and finished goods.

Technical specification validation.

Statistical process control.

Issuing & auditing of various parameters.The general processes of quality

assurance department are as follows.

Input inspection shells

Input inspection springs

Technical specification validation

Re-Validation

Moulding process sheet

Metal treatment process sheet

Calibration

Quality & Environmental Policy

Strive for continual improvement of our quality performance by meetingthe

changing requirements of our customers and our environmental performance

by prevention of pollution and maintenance of wastes.

Manufactures high quality products at competitive prices by adhering to

thesystem, processes and procedures and continually improving the same.


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Promote energy savings and conservation of resources

Strategies

The Organization strives to excel by strictly adopting the following aspects.Growing

and achieving through people, by Training, Bench Marking, Employee

Involvement,Employee Empowerment, Root Cause Corrective Action, Team Work,

Universal Responsibility,Statistical Thinking, Organizational Culture Building &

Sustained Management Methods.

Quality Excellence is achieved by adopting the two major strategy :

Kaizen

Kaizen is a Japanese word m eaning Change for better or Improvement .

The common English usage is Continual improvement.

Kaizen refers to a work place

Quality strategy and related to various quality control systems.

Kaizen aims to eliminate waste. This often followed by standardization of

this better way with others through standardized work.


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CHAPTER 6

5s Quality Principle

5S is a method of organizing a workplace and keeping it organized. The 5S are,

SEIRI

Sort and dispose unwanted items.

Follow red tag system.

Fixed point photograph.

Standard for deciding the required things.

SEITON

Organizing.

Proper lay out.

Tools shadow board cupboard/ racks.

Proper arrangements.

Filing in cabinet.


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SEISO

Cleaning.

Set time for cleaning and checking standard.

Development cleaning and checking standard.

Follow standards.

SEIKETSU

Standardizing.

Develop check list and display.

Position mark.

Jewellery box system.

Visual control.

SHITSUKE

Training and discipline

Train men at all level

Planned audit


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Motivation by recognition .The above mentioned quality aspects are being

followed throughout the organization to uphold its quality. These are followed

by its employees as their way of life.

Quality Circle:

Quality Circle is a small group of 6 to12 employees doing similar work,

whovoluntarily meet together on a regular basis to identify improvements in their

respective work areas using proven techniques for analyzing and solving work related

problems coming in theway of achieving and sustaining excellence leading to mutual

upliftment of employees as well asthe organization.It is a way of capturing the

creative and innovative power that lies within thework force.

The modern concept of quality control is designed in such a manner that,employees

of an organization have the opportunity to perform effectively and mesh well with

the plan and activities of the management, thereby facilitating a very conducive work

environment.


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Certifications:

The company has got the following certifications.

For Quality management system

o ISO 9001:2000

o ISOTS 16949:2002

o For Environment management system ISO 14001:2004

REPORT Prakash

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Transcript of REPORT Prakash