INTRODUCTION

Ashok Leyland is a well known automobile manufacturing company in India. Ashok

Leyland believes that its historical success and future prospects are directly related to

combination of strengths.

This project is titled as a study on functional areas in Ashok Leyland and tries to find out

the different aspects of manufacturing process in the company. The project was held at

ennore, plant from 15 to 14 July2010.

Different officials working in various departments have provided very important data in

this report. Every effort has been made to understand the functions and activities of

various departments as well as the manufacturing process.

ABSTRACT

The report provides a consolidated preview of the functional activities of Ashok Leyland,

ennore first plant. The referred unit is a core limb of Ashok Leyland, the nation’s

pioneering automobile manufacturer. The core departments; their primary functions and

the integrating activities are described in the report. Other special regulatory functions

like evaluation methods, employee benefit schemes have also been covered.

The unique features and policies of the company, which make it a leader without

contention and have aided the company in carving an excellent niche for itself in the

national and the international arena, have also been referred.

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OBJECTIVES OF THE STUDY

The objectives of the study are:

To familiarize with business organization.

Getting practical experience regarding the organizational function.

To learn about the policies and functions of the organization.

To understand the culture in the organization and its effect on employees.

To get industrial exposure and experience.

To understand the production and marketing methods.

METHODOLOGY

This study was undertaken by undergoing a training program at Ashok Leyland for

about a fortnight. The information was collected by interacting and interviewing with

the concerned personnel of various functional departments.

The methodology used for the study is through the collection of primary and

secondary data. Primary data is collected through direct observation and live

discussion with the managers and the staff members. Secondary data is collected

through Annual Reports, Business Journals, and Existing Records and also from the

website of the company.

SCOPE OF THE STUDY

The study is mainly based on the details collected from each department. It provides a

better understanding at functional level of each department. It provides a better

understanding at functional level of each department i.e. Purchase, Materials,

Production, Marketing, Finance and Human Resource Management. Each and every

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activity of the company has been studied very carefully with the data available. Apart

from that I gained knowledge of the functioning of different departments and their

inter relationship with each other. This study helped me familiarize with the

manufacturing and assembling of commercial vehicles.

COMPANY PROFILE

Ashok Leyland has been a major presence in India’s commercial vehicle industry since

1948, the year it was born. The origin of Ashok Leyland can be traced to the urge for

self-reliance, felt by independent India. Pandit Jawaharlal Nehru, India's first Prime

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

manufacture.

They are one of the India’s leading manufactures of commercial vehicles and special

vehicles, engines for industrial purpose, gen sets and marine requirement equipments. For

over five decades, Ashok Leyland has been the technology leader in India’s commercial

vehicle industry, molding the country’s commercial vehicle profile by introducing

technologies and product ideas that have gone on to become industry norms.

Ashok Leyland at the time of its inception was known as Ashok Motors. It was

assembling Austin cars at the first plant, at Ennore, near Chennai. In 1950, the company

started assembly of Leyland commercial vehicles and soon the local manufacturing under

license from British Leyland; participation in the equity capital, in 1954, the company

was re christened Ashok Leyland.

Since its inception, Ashok Leyland has been a major presence and these years have been

punctuated by a number of technological innovations which went to become industry

standard. This tradition of technological innovations and leadership was achieved through

years of vigorous in-house research and development.

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From 18 seater to 82 seater double-decker buses, from 7.5 tonne to 49 tonne in haulage

vehicles, from numerous special application vehicles to diesel engines for industrial,

marine and genset applications, Ashok Leyland offers a wide range of products.

Ashok Leyland has six manufacturing plants -

Ennore Plant, Chennai.

Hosur Plants Unit I, Unit II and Unit II A.

Alwar, Rajasthan.

Bhandara, Maharashtra.

A new plant is to be set to be launched in Uttaranchal at Pant Nagar with a plant capacity

of 40,000 commercial vehicles. Early products of Ashok Leyland included the Leyland

Comet bus chassis sold to many operators including Hyderabad Road Transport,

Ahmedabad Municipality, Travancore State Transport, Bombay State Transport and

Delhi Road Transport Authority.

In the popular metro cities, four out of five state transport undertaking buses come from

Ashok Leyland. Some of them like the Double Decker and Vestibule buses are unique

models from Ashok Leyland, tailor made high-density routes.

Statistics reveal that the company is India’s largest exporter of medium and heavy duty

trucks. It sells close to 83,000 medium and heavy vehicles each year. The company has a

near 98.5% market share in the Marine Diesel engine markets in India. At 60 million

passengers a day, Ashok Leyland buses carry more people than the entire Indian Railway

network.

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ORGANIZATION STRUCTURE

In 1987 the overseas holding by LRLIH (LAND ROVER LEYLAND

INTERNATIONAL HOLDINGS LIMITED) was taken over by a joint venture between

the Hinduja group, the Non Resident Indian Transnational group and IVECO Fiat SPA

part of the Fiat group and Europe’s leading truck manufacturing company. Ashok P

Hinduja is the chairman of the company. The Hinduja group also associated with Ennore

Foundries Limited, Automotive Coaches and Components Limited, and Gulf Ashley

Motors Limited.

The subsidiary holdings are Ashley Holdings Ltd., Ashley Investment Ltd., and Ashok

Leyland Project Services. The chief competitors of the company are;

Mahindra

Volvo

Tata Motors

With a commanding strength of the about 12,000 employees the company is looking

forwards to enhance the sxope of its action. It is aiming at expanding its production

operation overseas to make it a more globally accessible company. It is looking to

acquire a small to medium sized commercial vehicle manufacturers in China and other

developing nations, which have an established product line. An example would be the

2007 acquisition of the Czech based Avia’s truck business rechristened Avia Ashok

Leyland Motors.

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VISION

Be among the top Indian corporations acknowledged nationally and internationally for

- Excellence in quality of its products.

- Excellence in customer focus and service.

MISSION

Be a leader in the business of commercial vehicles, excelling in technology, quality and

value to customer fully supported by customer service of the highest order and meeting

national and international environmental and safety standards.

GEMBA

Gemba is a Japanese word meaning “Real Place” where the real action takes place.

In the manufacturing industry, there are 3 major activities directly related to earning

money, developing, producing and selling products.

GEMBA KAIZEN

Three ground rules for practicing kaizen in Gemba.

1. House Keeping

2. Muda Elimination [Waste Elimination]

Waste of over production

Waste of inventory

Waste of waiting

Waste of Motion

Waste of transportation

Waste of Producing Rejects

Waste of processing

3. Standardization.

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GEMBA MISSION Increase in the number of GEMBA CMI (Cost management initiative) Inventory Initiative Critical machine uptime Quality Safety

VENDOR OPPORTUNITIES:

Our Vendors are our valued partners in our business development and we shall work with

them in a spirit of mutual co-operation to meet our business objectives.

Vendor Development and Strategic Sourcing are handled by Corporate Materials

Department (CMD). CMD identifies the vendors, rates the vendors based on feedback

received from Supplier Quality Assurance Cell, sends drawings / specifications, calls for

quotes with detailed break-up of operation-wise costs, and negotiates the price at which

the parts will be supplied.

In addition to CMD at Ennore, and the two Units at Hosur, there are Materials

Management Departments (MMDs) for scheduling based on unit production plan.

VENDOR DEVELOPMENT OF STRATEGIC SOURCES:

Strategic Sourcing is central to the integrated Materials Management function. Ashok

Leyland's policy is to develop a vendor base committed to continuous improvement to

meet quality, cost and delivery standards.

Ashok Leyland considers its vendors as partners in progress and believes in

establishing mutually beneficial relationships. Ashok Leyland provides necessary

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technical assistance in the form of Project and Production Engineering, to maintain

quality levels. In addition, where required, Ashok Leyland also helps vendors financially.

Qualification Analysis – Executives

Ashok Leyland has a tie-up with BITS, Pilani for a custom-designed, off-campus 2-year

MS course in Engineering Management. Aimed at making Managers out of Engineers,

assignments and projects are central to the learning process thus bridging the classroom

with the engineers' workplace. From 2000, a BS programmers in Industrial Engineering

and Technology, is offered for diploma holders, again in collaboration with BITS. Apart

from updating their knowledge base, the programme empowers engineers to acquire

multiple skills.

Ashok Leyland is one of the moving forces behind an M.Tech course in Automobile

Engine Technology jointly managed by the automobile industry (Indian Society for

Automotive Technology, made up of auto manufacturers), IIT, Madras and Institute

Francais du Petrole, the French institute for IC engines.

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ORGANISATION STRUCTIURE

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MANAGING DIRECTOR

EXECUTIVE DIRECTOR

SENIOR DIRECTOR

GENERAL MANAGER

ASST. GENERAL MANAGER

DEPUTY GENERAL MANAGER

ASST. MANAGER

SENIOR OFFICER

OFFICER

DIVISIONAL MANAGER

MANAGER

SENIOR MANAGER

DIVISIONAL MANAGER

DEPARTMENT FUNCTIONS

The major functional areas of the unit and the major departments which oversee those

areas are catalogued as follows:

1. Personnel and Administration Department

2. Purchase & Material Planning Department

3. Production Department

4. Finance Department

5. Systems Department

6. Research & Development.

A brief review of each functional department and its activities as follows:

PERSONNEL & ADMINISTRATION

Departmental Structure

-MT

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CHIEF SECURITYOFFICER

DIVISIONALMANAGER IR

Sr. MANAGERHR

DGM

MEDICALOFFICER

-MANAGER-DIVISIONALMANAGER-ASST. MANAGER

-OFFICERS

-ASST. MANAGER -MT

-OFFICER

RECRUITMENT

Recruitment is the process of ‘finding and attracting capable applicants for employment.

The process begins when new recruits are sought and ends when their applications are

submitted. The result is a pool of applicants from which new employees are selected.

SOURCES OF RECRUITMENT

The following are various external sources of recruitment:

Consultancies

Campus recruitment

Lateral entries

1. CONSULTANCIES

The department heads where requirements are needed informs to the HR department

about the requirement. The concerned person for recruitment gets approval for filling the

vacancies. Then the consultancies are approached telling the requirements. The fit

applications are mailed to attend the interview. If satisfied, they are called for the

personal interview.

2. CAMPUS RECRUITMENT

The recruitment panel goes to the reputed colleges to select the candidates.

On the following basis they recruit the candidates

GETs - Graduate Engineer Training

DETs - Diploma Engineer Training

ITI

3. LATERAL ENTRIES

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They pick the experience candidates or people from other companies. The following is

the process of lateral entry recruitment:

1. Sourcing

2. Interview

a. Written test

b. Technical round interview

c. Personal Interview

TRAINING

Training is an on-going process aimed at capability-building of the employees at all

levels. Training programmes is classified into

Skills

Knowledge

Behavior

WORKMEN CAPABILITY BUILDING

Training & Development for the unionized employees at the manufacturing units is

focused on skill development. Both internal and external training is given for associates.

Guest lectures of external faculty and various other industrial visits will be arranged for

associates. In addition to some programmes like engineering drawing and waste

elimination are also conducted.

TRAINING FOR SENIOR/ MIDDLE LEVEL MANAGEMENT

Both external and internal training is given for the executives. Faculty from outside

agencies will be arranged for training them. They also get faculty from corporate level.

Training for senior/middle level management is done on the following basis:

1. Technical

2. Behavioral

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3. Functional

DEVELOPMENT ACTIVITIES

The following are the developmental activities:

TEI – Total Employee Involvement

CFG – Cross Functional Group

QC – Quality Control

SS – Suggestion Scheme

EMPLOYEE RETENTION/INCENTIVES

Performance linked pay

The company has an annual appraisal system in place and pursuant to this system,

performance linked pay, annual variable pay and/or commission is paid to the employees.

HR Initiatives

There is a HR initiative called “SEED”. In this, employees are welcomed to provide

suggestions to improve quality, performance, cost reduction, etc., If their suggestions are

feasible, they are accepted and the others are rejected. A cash award, awards such as

RESI, GEMBA passport is given to them as a token of appreciation. This motivates

people to contribute their ideas.

Employee welfare schemes

The following are the welfare schemes available to the employees.

Canteen facilities

Medical claims

Transport facilities

Ashok Leyland school for their children

Scholarship schemes

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Recreation facilities

PERFORMANCE APPRAISAL

‘Performance appraisal is an objective assessment of an individual’s performance against

well defined benchmarks’. The performance appraisal method followed is based on the

Superior – subordinate relationship, whereby the superiors rate their subordinates. They

are rated on the basis of their performance.

CORPORATE SOCIAL RESPONSIBILITY

Donations

Career guidance

AIDS awareness

Guest lectures for school and college students

PROMOTIONS

Promotions are given once in three years wherein there is elevation from one level to the

other. They give promotions based on the 3x3 matrix.

Performance

SEPERATIONS

When people leave the organization, Exit interviews are usually conducted to know the

reasons for leaving. The common reasons given are

Better opportunities

Financial problems

A3 A2 A1

B3 B2 B1

C3 C2 CI

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Lack of growth

Job clarity

ATTRITION

Attrition rate is noted to be 5.6% till December 2008.

PURCHASE & MATERIAL PLANNING

For a manufacturing company to produce end items to meet demand the availablility of

sufficient production capacity must be co-ordinated with the availability of raw materials

and purchased items from which the end items are to be produced.the following are the

system which are followed to procure materials:

-JIT

-LCL

-MRP

-VMS

-KANBAN

JIT

It is an approach than seeks to eliminate all source of waste in production activities by

providing the right part at the right place at right time .JIT encompasis the successful

execution of all manufacturing activity required to produce a final product from design to

delivery and including all stages of conversion from raw materials onwards.

PURPOSE OF JIT

-have only the required inventory need

-improve quality to zero defect

-to reduce lead time

-to incrementally revise the operations themselves and to accomplish these things

at minimum cost.

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LOW COST LOGISTICS (LCL)

LCL Includes materials such as bolts nuts etc. these are purchased in bulk and they are

used for production. They don’t affect the inventory cost.

MATERIAL REQUIREMENT PLANNING

Material is a technique for determining the quantity and timing for the acquisition of

dependent items needed to satisfy master schedule requirements

An alternative approach to managing dependent demand items is planned for

Procurement or manufacture of the specific components that will be required to produce

the required quantities of end production schedule indicated by the master production

schedule.

BILL OF MATEIALS

The parts /components requirement of the final product which is to be manufactured is

usually presented in the form of a product structure/bill of materials. it is a listing of all

components that go into an assembled item. It frequently includes the part number and

quantity required per assembly.

KANBAN

The kanban system is a signal proofing. the firm stores their materials and other

inventory item in a signal use contains that holds a specific amounts of material or other

inventory part that are used to manufacture the product. when the material in a container

is depleted, a KANBAN that defines requirements of inventory items to continue the

production process is kept in the container.

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PRODUCTION

Departmental Structure

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DEPUTY GENERAL MANAGER

CONNECTING ROD, CAMP SHOP & GEARS

DIVISIONAL MANAGER- SHOP-I

CYLINDER BLOCK & CYLINDER HEAD

ASST. GENERAL MANAGER- ASSEMBLY

Sr. MANAGER Sr. MANAGERSr. MANAGERSr. MANAGER

ASST. GENERAL MANAGER- MACHINE SHOP-V

EXECUTIVES EXECUTIVES

ASST. MANAGER

ASST. MANAGER

MACHINE SHOP I

COMPONENTS MACHINED:

Cylinder block machining (AL-680 Engine)

block machining (H-series Engine)

Rocker level (Rocker arm actuating device)

Cylinder H-series camshaft machining

H-series connecting rod machining

H-series timing gear case machining

H-series flywheel housing machining.

MACHINE SHOP-V

COMPONENTS MACHINED:

BEARING CAP FOR H-SERIES:

Operations done:

Rough milling

drilling

arrow milling

finish milling

washing

boring

tapping

end milling

brushing of holes

assembly of bearing caps

injection flood washing

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EMPLOYEES EMPLOYEES

leak test water ways

counter boring, reaming

ENGINE ASSEMBLY II & V

FIXING OF CRANKSHAFT AND BEARING CAPS:

CRANKSHAFT is attached with a gear and is fixed to the bottom of the cylinder

block by bearing caps.

FIXING OF CAMSHAFT

CAMSHAFT is attached with a timing gear and is fixed in the

Required space provided in the cylinder block

Fixing of flywheel housing

Assembly of oil sump

Fitting of oil stainer

Fixing of fuel injection pump

Fixing of connecting rod and piston

Assembly of inlet manifold

Fixing if started motor

Fixing of connecting rod with crankshaft

Fixing of timing gear case

Compressor fitting

Fitting of cylinder head and rocker arm assembly

Fitting of cylinder head cover

Fitting of oil coolant

Assembling of turbocharger or air fitter

Fitting of atternator, fitting of belt.

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MEDIUM DUTY VEHICLE (MDV)

CATEGORY:

Vehicles which transport load in the range of 16 to 35 tonnes

PRODUCTION IN MDV ASSEMBLY (H1 PLANT):44/day, 22/shift

STAGES OF ASSEMBLY:

Frame Assembly: 5stages

Chassis Assembly: 13 stages

FRAME ASSEMBLY:

STAGE 1: Mounting of side members and cross members

STAGE 2: Mounting of Front Spring-rear, Front Spring-rear, Rear spring-front, Rear

spring-middle, Rear spring-rear.

STAGE 3: Fitting of Engine mounting brackets and FES mounting brackets

STAGE 4: Side members fastening to torque limit, Steering box bracket, Side Members

reaming, Front tie channel mounting

STAGE 5: Fitment of FES rear brackets, Shock absorber brackets and Torque checking

PASSING STAGE: Checking and tilting

CHASSIS ASSEMBLY:

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STAGE 6: Radiator mounting brackets, Air tank mounting, Air cleaner mounting

bracket, battery mounting bracket, grease nipple fitment, Bellcom lever mounting.

STAGE 7: DC valve mounting, Oil piping, Clutch oil piping, Quick release valve

mounting.

STAGE 8: Spring fitment, frame punching

STAGE 9: Silencer fitment, first axle mounting.

STAGE 10: Second axle mounting, slack adjustment

STAGE 11: Fuel piping, Air piping, Air filter mounting, Diesel filter mounting, and

Steering box mounting

STAGE 12: Engine mounting, fuel tank mounting, Diesel filter mounting, steering box

mounting

STAGE 13: Radiator fitment, Radiator supports tightening, Rear lamps

fitting,Turbocharger outlet pipe connection and Radiator hose connections

STAGE 14: Exhaust piping, Shock absorber fitment (front and rear), Battery mounting

and connection of circuits, battery casing fitment and second propeller shaft mounting

STAGE 15: Tyre mounting, Maxcut checking

STAGE 16: FES mounting, electric fitments (male-female connecting process)

STAGE 17: Bumper fitment, FES wiring, and Universal joint (UJ) fitment with steering

handle, ABC fitment and connecting

STAGE 18: Greasing of joints, nuts, etc., off track arrangements

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FES DRESSING:

Fitting of seats, ABC pedals, steering handle and instrument box

Electrical wiring

Flink Valve Fitting.

PDI (PRE DELIVERY INSPECTION):

Testing of vehicle on real road conditions

The following are the various tests done to test the vehicle:

1. Speed test

2. Acceleration test

3. Vibration test

4. Torque tightening

5. Oil level and water level checking

6. Electrical components checking

7. Air leakage test

8. Grease level checking

9. Power steering hose routing and clamping

10. Road test

QUALITY CONTROL

QUALITY:

It is the degree to wish a set of inherent characteristics fulfills requirements. The

following are the various dimensions of quality.

Performance

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Features

Conformance

Reliability

Durability

Service

Response

Aesthetics

Reputation

TQM:

It is defined as both a philosophy and a set of guiding principles that represent the

foundation of a continuously improving organization. It is the application of quantitative

methods and human resources to improve all the processes with an organization and

exceed customer needs now and in the future.

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 comply with statutory requirements.

Towards this, the quality policy of Ashok Leyland is to make continual improvements in

the processes that constitute the quality management system, to make them more robust

and to enhance their effectiveness and efficiency in achieving stated objectives leading to

1. Superior products manufactured as also services offered by the company.

2. 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.

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3. Seamless involvement from suppliers and dealers in the mission of the company

to address customers changing needs and protection of the environment.

OBJECTIVES OF QC DEPARTMENT:

1. Identity the quality level to meet drawing and specification requirements.

2. Establish necessary infrastructure and system to carryout quality planning, control

and improvement activities.

3. Exercise necessary controls at all stages to ensure total conformance of product

quality to design specifications.

4. Evaluate product quality in the light of performance and customer feedback to

review and update quality level, infrastructure and systems.

SYSTEM OF ACCEPTING PRODUCTS:

1. ZERO DEFECTS SAMPLING PLAN:

Here, the defect level should be zero, then accept the product. If there is one

defect also they will reject the product.

2. DOUBLE DEFECT SAMPLING PLAN:

Here, first one set of samples will be taken and if they find defect another set of

samples will be taken if it goes beyond the fixed level then reject or else accept the

products.

INSPECTION:

It is also to eliminate, substantially reduce or automate the inspection activity.

There are 4 phases of inspection.

100% inspection

Sampling

Audit

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Identity check

PURCHASED PRODUCTS VERIFICATION PROCESS

INPUT OUTPUT

RESPONSIBILITIES OF QC DEPARTMENT

The quality engineering dept is responsible for quality of all products of Ashok

Leyland, Hosur which is achieved by…

1. Ensuring the quality of bought out machine VIZ rough, semi-finished &

finished.

2. Exercising controls on the processes clearing, manufacturing and assembling

there by ensuring the quality of the house made items.

3. Ensuring the quality of the finished products prior to dispatch to the

customers.

4. To provide support to the vendors to meet the quality requirements and also

guidelines for continuous improving.

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PURCHASED VERIFICATION PROCESS

SUPPLIER THROUGH PURCHASE

CUSTOMER ENG / VEH / ASSY

* INWARD REJECTION*INTERNAL CUSTOMER CONCERN*VENDOR PERFORMANCE

*INTERNAL CUSTOMER FEEDBACK

The departments is also responsible for

1. Planning and implementation of APQPCP & PPAP procedures to meet TS16949

requirements.

2. Training in quality engineering and quality control technique to all dept of Ashok

Leyland, ennore.

3. Monitoring quality level of “zero kilometer” failures and field performance for

improvements

BENCHMARKING:

Benchmarking is the systematic search for best practices, innovative ideas, and

highly effective operating procedures. Benchmarking considers the experience of others

and uses it. It promotes superior performance by providing an organized framework

through which organizations learn how the “ Best in class ” do things, understand how

these best practices differ from their own and implement change to close the gap.

LEVELS OF BENCHMARKING:

1. Contempary level

2. High level.

PROCESS OF BENCHMARKING:

The following six steps are followed to benchmark

1. Decide what to benchmark

2. Understand current performance

3. Plan

4. Study others

5. Learn from the data

6. Use the findings.

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CONTINOUS PROCESS IMPROVEMENT:

Quality based organizations should strive to achieve perfection by continuously

improving the business and production processes.

CUSTOMER RETENTION:

It represents the activities that produce the necessary customer satisfaction that creates

customer loyalty, which actually improves the bottom line. It moves customer

satisfaction to the next level by determining what is truly important to the customers and

making sure that the customer satisfaction system focuses valuable resources things that

really matter to the customer. It is the connection between customer satisfaction and the

bottom line.

WAYS TO RETAIN CUSTOMERS:

The following are the various ways followed here to retain their customers

1. Warranty expenditure measure

2. Dealers conference

3. Customer visits

4. Monthly plant quality review

FEEDBACK FROM CUSTOMERS:

Feedback is collected from the customers regarding quality through the following

ways.

Customer visits

Toll-free telephone number

Comment card

Report card

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PROBLEM SOLVING METHOD: -

PLANT ENGINEERING

Plant engineering is responsible for proper functioning of the plant by carrying out

maintenance operations such as electrical and electronics equipments maintenance, fork

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ACT PLAN

STUDY DO

IDENTIFY THE OPPURTUNITY

ANALYSE THE PROCESS

DEVELOP THE OPTIMAL SOLUTION

IMPLEMENTSTUDY THE RESULTS

STANDARDIZE THE SOLUTION

PLAN FOR THE FUTURE

lift charging and its repairing, repairing of pneumatic circuits etc.. It is also responsible

for maintenance works carried out in the organization. The following are the various

types of maintenance:

Predictive maintenance

Preventive maintenance

Breakdown maintenance

Routine maintenance

1. PREDICTIVE MAINTENANCE:

Predictive maintenance is done on assumption by experience before the occurring

or by any symptoms of occurring.

2. PREVENTIVE MAINTENANCE:

Preventive maintenance is done before the accident occurs, they will take actions to

prevent them.

3. BREAKDOWN MAINTENANCE:

Breakdown maintenance is done after the accident occurs. Actions will be taken

only after the occurrence

4. ROUTINE MAINTENANCE:

Routine maintenance is done on even time or on routine basis. It is generally carried

out without affecting the productivity.

DIVISIONS:

Plant engineering is divided into 4 divisions to carry out its functions. The following are

divisions of plant engineering:

Electrical

Mechanical

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GWE(General Works Engineering)

Civil

PERIOD OF MAINTENANCE:

Period of maintenance is done on the basis of VED analysis. It is also known as time

based maintenance. Here VED stands for

V - Vital

E - Essential

D – Desirable

ANALYSIS DURATION

V- Vital 6 months

E- Essential 9 months

D- Desirable Once in a year

PEP: - PRODUCTION ENGINEERING & PROJECTS

PEP department works as a bridge between R & D and Manufacturing Department. The

R & D designs and if the testing is successfully achieved it is transferred to PEP.

RESPONSIBILITIES OF PEP:

1. Deciding and releasings of MAKE OR BUY DECISION ADVICE (MBDA) for

new components.

If bought from supplier that may be;

BOR (Bought out Rough) – need further processing.

BOSF (Bought out Semi Finished) – need further prosessing.

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BOF (Bough out Finish) – ready for assembly.

BOR & BOSF are chosen to maintain quality standards, core competency, improve

efficiency, and to enjoy cost benefits.

Laying down the Process and Selection of Machines.

Designing new tools for inhouse components

Organising and Conducting assembly trials.

Continuous improvements towards quality and productivity

Analysis of processes and layouts

Progressing of new projects to bridge between R & D and manufacturing.

IED – Industrial Engineering Department.

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

RESPONSIBILITIES OF IED

1. Decide on capacity planning.

2. Manpower capacity & Requirement.

3. Machine capacity and running time

4. Operating time.

5. Frame performance index for incentive.

6. Frame the work instruction sheet, process sheet.

7. Processing FMEA for assembly vehicle

STORES AND LOGISTICS

There are Stores meant for both Vehicle assembly and Engine Assembly. Vehicle part

number and engine part number are framed for identification. 2 bin system are practiced.

Despatching of finished vehicle and semi finished engine are processed every morning.

Goods Receipt Note (GRN) is the vital documents required for inspection. TVS

Logistics are the group who supply the internal components. All the dispatching and

supply schedules are accessed from ERP both by Company Logistics and TVS Logistics.

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As a cost beneficial measure for the Company and Supplier , the godowns of the supplier

are located nearby for easy delivery and enhances the efficiency of JIT.

FINANCE

FINANCE FUNCTIONS:

1) Investment decisions

2) Financing decisions

3) Dividend decisions

4) Liquidity functions

ROLE OF FINANCIAL MANAGER:

1) Funds raising

2) Funds allocation

3) Profit planning

4) Understanding capital markets

SHAREHOLDING:

The following are the shareholders of Ashok Leyland Ltd:

51% owned by Hinduja group

12% - 14% owned by public

Remaining shares are owned by various financial institutions

DIVIDEND POLICY:

The Board may, at its discretion, recommend dividends to be paid to the shareholders.

Generally, the factors that may be considered by the Board of Directors before making

any recommendations for the dividend include, without limitation, the future expansion

Splans and capital requirements, profits earned during the fiscal year, cost of raising

funds from alternate sources, liquidity position, applicable taxes including tax on

dividend, as well as exemptions under tax laws available to various categories of

investors from time to time and general market conditions. The Board of Directors may

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also from time to time pay interim dividends to the shareholders. Dividends, other than

interim dividends, will be declared at the annual general meeting of the shareholders

based on the recommendation of the Board of Directors.

BUDGET:

The funds which are required by the organization are provided by the corporate office,

Chennai. These funds are allocated to the departments whenever there is requirement.

ALLOCATION OF FUNDS:

Funds are allocated for various purposes of the departments. They allocate funds for day

to day activities and also for various projects and also for special projects, they also

allocate for payroll.

PAYROLL:

They use the customized ERP to pay salary to the employees. Every month on 10 th

salary is paid for the workers and on 28th salary is paid for the executives.

SYSTEM

Ashok Leyland Network Connectivity

Supplier

Hosur- unit I Hosur- Unit IIBhandara

ENNORE

AL - AUDCUMKTGALWAR

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Internet

Corporate

ASHOK LEYLAND ERP- FAMILY MEMBERS:

ALMAP- Manufacturing

ALMARK- Marketing

ALFIN- Finance

ALPAY- Payroll

ALPMS- Plant maintenance

ALEMS- Environmental management

ALHR- Human resources

ALCORP- Corporate functions

ALSCM – Supply Chain Management

ALPD – Product Development

ALNPRD – Non Production

ALIMS – Information Management Systems.

HARDWARE TECHNOLOGIES USED IN SYSTEMS:

# DATABASE SERVERS – (3nos)

* HP-R*8640 Itanium Processor (1.3 GHz)

* 16 Processors each

* 64 GB RAM (total 192 GB)

#APPLICATION SERVER (5nos): -

--Compaq Alpha Server- model ES40

* Dual Processor

* 6 * 9.0 GB of OS

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* 4GB RAM

# DATA STORAGE: -

* EVA 5000 Disk sub system

* 2 Controllers

SOFTWARE TECHNOLOGIES USED IN SYSTEMS:

# Oracle log

# Internet Application Server (IAS)

# Real Application Cluster (RAC)

# Application development with

*Oracle forms 6i

* Oracle reports 6i

MODULES USED INSIDE THE COMPANY:

ACL - Access Control Module

BOM - Bill of Material

MPL - Material Planning

SDB - Supplier Database

POS - Purchase Order System

IPS - Inspection Planning Sheet

INW - In warding

JIT - Just In Time items

LCL - Low Cost Logistics Items

MRM - Sun Contractor Material Issues

MTN - Sub Contractor Material Transfer

VQR - Vendor Quality rating

VDP - Vendor Delivery Performance

STK - Stock / Inventory

CPM - Comprehensive Process Master

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PPL - Production Planning

SFC - Shop Floor Control

UPJ - Unplanned Jobs

URDC - Inter Units Receipt & Dispatch

EXS - Excise

PSL - Priced Stored Ledger

WMC - Works Made Items Costing

VCS - Vehicle Costing System

SCL - Sub Contract Ledger

RMGP – Returnable Material Gate pass

CFS – Chassis Final Specification

LTMS – Lean Tool Management System

GROWTH MILESTONES OF ASHOK LEYLAND

1966 – Full air brakes introduced

1967 – Double Decker buses introduced.

1968 – Power steering offered.

1979 – Multilane trucks introduced.

1980 – Integral bus with air suspension.

1992 – Self-certification status for defence supplies.

1993 – ISO 9000 Certification.

1994 – ISO 9001 Certification

1997 – India’s first CNG powered bus.

1998 – QS 9000 Certification

1999 – CNG (Compressed Natural Gas) introduced.

2000 – Euro-I, Engines/vehicles introduced.

2001 – ISO 14000 Environment Management System Certification.

2002 – Exclusive Machine line – 2 for Hino cylinder.

2003 – E-Comet launched.

2004 – 50,000 mark vehicle produced.

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PRODUCT PROFILE

Ashok Leyland offers a comprehensive product range with trucks from 7.5 tons GVW to

125 tons GVW. From 19 to 80 seaters a host of special application vehicles and diesel

engines from industrial gensets and marine application.

Product profile can be broadly split into six categories viz. passenger, goods, cargo,

heavies, special Vehicles and Engines.

PASSENGER

ICV Viking MOV

Cheetah Viking Hino Viking AL

Rear Engine Bus Vestibule Bus Panther

Cruiser CNG Bus Viking

Super Double Decker

GOODS

Haulage Comet Bison

Tipper Taurus 6X4 Tractor

Comet 2614 Tusker 3516 Multi Axle Tusker

CARGO

LCV Haulage Cargo 909

Cargo 1614 Tipper

HEAVIES

Haulage Tractor Beaver

Dumper

SPECIAL VEHICLES

Defence LRV Fire Fighter

RIV 4 x 4

ENGINES

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Industrial Marine

RESEARCH AND DEVELOPMENT

To offer world-class technology that is relevant and affordable to the Indian customer is

the philosophy that drives R&D at Ashok Leyland. Over the years, this philosophy has

been translated time and again into products that seamlessly integrate international

technology with local needs. "The role of R&D is central in fulfilling the company-wide

commitment to total customer satisfaction" states Mr. R. Seshasayee, Managing Director,

and adds that the increased infrastructural and financial support expresses the company's

determination to become self-reliant in R&D.

Value to the Customer

The immediate R&D priorities are to pro-actively address safety and environmental

issues, harness and adopt technologies that provide value to the customer in an

atmosphere enabling creativity and innovation. Powering those who "engineer

tomorrows" with an enabling infrastructure has been top priority for the company.

Test Tracks

But our R&D is not confined within walls. It extends to the test tracks as well. Rigorous

tests are carried out under stringent simulated conditions that replicate the most

treacherous landscapes.

Vehicle ruggedness and longevity are a prime customer concern, as they directly impact

earnings. Ever conscious of this, Ashok Leyland makes extensive use of a modern CAD

set-up, a comprehensive test track facility (where cobble-stones are calibrated and reset

periodically), accelerated fatigue testing rigs and rigorous durability testing facilities.

Together they ensure that there is a constant improvement in the life and on-road

performance of every make of Ashok Leyland vehicle to hit the roads. Safety, durability,

through our R&D efforts.

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Innovations

Ashok Leyland product development successes have come from a keen sense of

anticipation and attentiveness. The company initiated research into alternative fuels well

before legislative debate had even begun in the country. The result was the

implementation of CNG technology ahead of the rest promising a breath of fresh air for

polluted cities.

People

We are close to 12,000 people, moulding and managing technology. And reaching the

benefits of technology to our customers. Offering transport solutions and after-market

support wherever our products operate - which is almost everywhere.

We are spread throughout India, and even outside India. Our tasks vary, so do our skills.

But we are bound together by a healthy chain of interdependence, to deliver value to the

customers.

ENVIRONMENT POLICY

Ashok Leyland is committed to preserve the environment through a comprehensive

environmental policy and a proactive approach in planning and executing the

manufacturing and service activities. The objective of Ashok Leynand’s environmental

policy is to adhere to all applicable environmental legislations and regulations, adopt

pollution preventive techniques in design and manufacture, conserve all resources such as

power, water etc, and optimize its usage, through scientific means, minimuse waste

generation by all possible ways and Reduce, Reuse and Recycle the same through time

bound action plan as well as provide a clean working environment to employees,

contractors and neighbours.

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Ashok Leyland has proactively developed its engines to meet the progressive emission

norms, including the Bharat Shage II norms. The Ennore unit was recently identified as

one of the model energy – efficient units by a CII-TNEB organized energy conservation

(ENCON) mission.

From August 1999 “green energy” has been powering the Hosur Plants. Even cooking is

eco-friendly here. The canteen runs on Solar Heaters and food waste becomes fodder to

cattle at a cattle farm at Mathagiri near Hosur.

To the best out of Ashok Leyland’s eco-friendly engine technology, round the year

awareness and action programmes are held at Operators’ meets and service campaigns.

Ashok Leyland has also launched a dedicated mobile emission clinic operating on

highways and at entry points to New Delhi. On an average 250,000 liters of recycled

water is pumped into the garden saving Rs. 1.5 million per annum.

OBSERVATIONS AND INTERPRETATIONS.

SWOT ANALYSIS

STRENGH OF THE COMPANY

1. Good Training System.

2. Good Organizational Climate.

3. High Market Share

4. Skilled Employees

5. Strong Functional Structure

6. Standard Quality Product

WEAKNESS OF THE COMPANY

1. Low margin

2. High price

3. Sales representatives are less

4. There is no proper mechanism to handle the grievance of the customers

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OPPORTUNITIES FOR THE COMPANY

1. Due to liberalization, demands for heavy vehicle have steeped up all over

the globe.

2. National market through good advertisement.

3. Company provides better credit facility to dealers.

4. Company introduces promotional programmes

THREATS FACED BY THE COMPANY

1. High competion

2. Liberal credit policy of other brand

3. Promotional programmes of other brand

4. Complicated national market

5. Good replacement facility if other brands.

FINDINGS:

1. In this organisation there is no flexible manufacturing system.

2. There is no effective utilization of Human Resources.

3. To solve their work related problems QCC (Quality Control Circle) and cross

functional team are made effective. Work instructions, standard operating

procedures, inspection reports, QC charts are effective..

4. In this organisation there is no flexible manufacturing system.

5. There is no effective utilization of Human Resources.

6. To solve their work related problems QCC (Quality Control Circle) and cross

functional team are made effective.

7. Work instructions, standard operating procedures, inspection reports, quality

control charts are effectively utilised by the employees.

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SUGGESTIONS

The company should earmark more money for the advertisement and sales

promotion of its products. It helps to increase the brand awareness and image.

The company should concentrate on markets in the international arena where its

competitors are less powerful.

Complaints should be rectified in the shortest possible time. For this a customer

satisfaction cell should be organized.

CONCLUSION

Ashok Leyland is a well known automobile manufacturing company in India.In ennore

first plant, there is a well planned organisation structure being followed. There is a well

integration of all the functional departments which facilitates the use of software like

ERP. Retention of the talented people is essential as they contribute a lot to success of the

organisation.

The catalogued training programme and the resulted report have been of great help to me,

an aspirant manager, to understand the functioning of a major establishment like Ashok

Leyland. The training programme has also revealed many unknown facts about the

working of a manufacturing unit.

BIBILIOGRAPHY

Human Resource Management – Ashley News.

Financial Management – I.M. Pandey

Total Quality Management – Bestersiek

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Web Bibiliography – www.ashokleyland.com

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