EscortS AUTO
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A Project Report A Project Report On On Topic: In-depth Analysis of Escort Auto Component Ltd. in the following two areas: Marketing Human Resource Management
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ESCORTS AUTO
Transcript of EscortS AUTO
A Project ReportA Project Report
OnOn
Topic: In-depth Analysis of Escort Auto Component Ltd. in the following two areas:
Marketing Human Resource Management
CONTENTSCONTENTS
TOPICS PAGE NO.
1. SYNOPSIS 1
2. INTRODUCTION 4
ESCORT PROFILE 5
ESCORT GROUP 8
COMPANY MISSION 13
EACL PROFILE 17
3. METHODOLOGY 29
4. FINDINGS 31
MARKETING 31
STRATEGY 53
SURVEY 68
DEMAND ESTIMATION 70
MARKETING INTELLIGENCE SYSTEM
73
CRUX OF MARKETING 76
HUMAN RESOURCE MANAGEMENT 92
FUNCTIONS 94
COMMUNICATION 95
DISCIPLINE AND DISCIPLINARY ACTION
107
GRIEVANCE 116
MORALE 120
WAGES AND SALARY 123
JOB EVALUATION 129
PERFORAMNCE APPRAISAL 135
TRAINING 139
PROMOTION, DEMOTION, ABSENTEEISM
141
RECRUITMENT AND SELECTION PROCESS
143
QUALITY RECORDS 145
5. LIMITATIONS 146
6. CONCLUSIONS 148
7. RECOMMENDATIONS 152
8. APPENDICES 156
9. BIBLIOGRAPHY 173
CONTENTS (GRAPH & CONTENTS (GRAPH & CHARTCHART))
TOPICS PAGE NO.
1. MARKETING
ORGANISATION STRUCTURE 31
SALES DATA/ESTIMATION OF DEMAND 32
GRAPHICAL PRESENTATION ESTIMATED
DEMAND
33
MANUFACTURING 34
PRODUCTIVITY ANALYSIS 35
VALUED CUSTOMER/MARKET SHARE 36
SALES TURNOVER 37
MASTER RECORDS 38-42
PRODUCTION DATA 43-44
REVISED BUSINESS PLAN (EACL) 45-46
PRICE 47
PRICE MOVEMENT 60
PRICE LIST 61
TOTAL MANUFCTURING OVERHEAD 83
MANHOURS
CULTURAL CHANGE 89
2. HRM
ORGANISATION STRUCTURE 92
WORKERS STRENGTH 93
COMMUNICATION 95
TYPES OF COMMUNICATION 96
WAGES AND SALARY 123
FACTORS IN FLUENCING 126
RECRUITMENT AND SELECTION PROCESS 143-144
SYNOPSISSYNOPSIS
This project report in on Escort Auto Component Ltd. a solely
owned subsidiary of Escorts Ltd. Escorts Ltd. is one of the
leading business houses of India.
The project covers the in-depth history of Escort Ltd. and its
subsidiary Escort Auto Component Ltd.
The company is manufacturing industrial product (carburettor,
clutch, oil pumps) for two wheelers industry. The carburettor
manufactured by this company is marketed all over India under
the brand name MIKCARB.
The two fields which is covered in this project report is
1. Marketing
2. Human resource management.
The project highlights the various marketing strategies the
company has adopted, in relation to product, price, place and
promotion.
The company had adapted to marketing concepts
- Original Equipment Marketing
- Replacement marketing
In OE marketing company is selling carburettor to the original
equipment manufacturers like Bajaj Auto, Royal Enfield,
Majestic Motors, TVS Suzuki, Kinetic Engineering, LML &
Hero Honda Motors Ltd.
Company has a fresh experience in the replacement market.
Escort Auto is manufacturing carburettors for Hero Honda,
Bajaj & LML in this field. These are directly sold through
dealers all over India.
After analysing marketing deeply a small survey was conducted
to know the actual market scenario of carburettor. This was
conducted in Faridabad (Hariyana).
The company has a philosophy of Quality, Cost, Delivery,
Development & Attitude (Q.C.D.D.A.). Which is their crux of
marketing. This philosophy is been covered in-depth which is
also the crux of EACL carburettor marketing
The auto ancillary business has increased in the near future.
This is mainly because of galloping rate of increase in sales of
two-wheelers. The two wheeler industry is growing at a 33%
rate every year. So in the effect of this Auto component business
has also increased. There is a relation of derived demand
between the two. Against this background Escort Auto
Component Ltd. enters the new areas of auto component
business with stronger customer orientation, faster penetration
and shaper focus in the future. The company had diverted its
marketing into replacement marking with an Eagle’s eye.
The project also provides an in-depth knowledge of human
resource management system adopted by the company. Areas
like performance appraisal job evaluation, executive and
employee development and training. At the same time one of the
two major aspects of Human Resource Management is been
deeply studied. Which are Discipline and disciplinary action and
communication prevailing in the organisation.
Other aspects like wages and salary, grievance handling,
training and recruitment process, organisational structure,
Employees morale has been carefully dealt with.
Lastly this project also mentions about the conclusion part
according to author knowledge and the recommendation to it.
Which can be useful to the company if they find it worth.
Escort auto component strongly believe
"Total satisfaction to customers, employees, share holders,
vendors, and the community".
INTRODUCTIONINTRODUCTION
OBJECTIVE
The objective of the project report is to have an in-depth
knowledge of
- How industrial marketing is done
- To analyse marketing strategies of the company
- In-depth study of human resource management system
adopted by the company.
- Lastly to recommend the company about what all they can do
in the field of marketing and human resource.
PROBLEM
Company is facing losses for the reason that it has lost its
major OE consumer Yamaha Motor Escort Limited. Company
is also facing problem in the field of replacement market. The
company has just ventured into this market and is facing tough
competition and though finding ways to fight with it.
ESCORTS PROFILEESCORTS PROFILE
Escorts come into being with a vision that was nurtured by Mr.
H.P. Nanda and late Mr. Yudi Nanda. The foundation of Escorts
Ltd. was laid in the formation of Escorts (agent) Ltd. on 17 th
October 1944 and Escorts (Agriculture and machines) Ltd. in
1948. These two were later merged in 1953 to form Escorts
Agent Pvt. Ltd. the company's incorporation in present name
Escorts Ltd. was effected on 10 th January 1960.
Having initially started with a franchise for wasting house
domestic appliance ESCORTS has come along way in
manufacturing and marketing a range of product. It has
pioneered the farm mechanisation India through import and
distribution of agricultural tractors.
With its 19 manufacturing plants spread over 6 location, 2400
employees and a large network of dealers and distributors
ESCORTS today rank amongst the top 20 engineering
organisation in the country.
Till 1995 the company principal activities were trading and
representing several leading overseas for the sale of their
products in India. The company progressively entered in the
field of manufacturing establishing a series of manufacturing
plants.
The ESCORTS Group today headed by Rajan Nanda, rank
among the countries leading multi product industrial
conglomerated having collaborations with several global giants.
It has a strong presence in the core areas of Agri machinery,
Bi-wheeler construction and material handling equipment, auto
and railway ancillaries, telecommunications and finance. A
chronology of business actives is listed below.
1954 : Piston rings and cylinder liners
1960 : Piston
1961 : Assembly of tractors
1962 : Motorcycle and railway couplers
1963 : Automobile shock absorbers
1965 : Agricultural tractor under 'Ford' Brand name
1969 : Agricultural tractor under 'Ford' Brand name
1971 : Industrial and construction Equipment
1979 : Excavator loaders
1981 : 100 C.C. Motorcycles
1985 : Electronic PABX's
1991 : Harvester combines
1992 : V-sate Satellite Communications
1993 : Mobile Communications
1995 : Fork lift trucks
1996 : Disengagement of joint venture collaboration with new
Holland and launch of FARMTRACK tractor.
ESCORTS GROUPESCORTS GROUP
The Escorts odyssey, which began in 1944, from agency to
manufacturer to diversified industrial conglomerate, is a classic
study in corporate planning and business development.
Today Escorts ranks among the country's leading multi-product
industrial group having several international collaborations,
employing over 20,000 people with a turnover of Rs. 22, 000
million.
Beginning as a small agency house in Lahore in 1944, Escorts
after independence gauged the need for modernising agriculture
and pioneered farm mechanisatio in the country. It set up the
first dealer network of its kind to market tractors it was to
import. Simultaneously the company established a school of
farm mechanisation to educate farmers on use and benefits of
farm mechanisation. Escorts soon became the number one
tractors selling company in India.
Meanwhile, the company branched into manufacturing Pistons
rings in India in collaboration with GOETZEWERKE of
Germany. Since then Escorts has all along been diversifying and
growing steadily.
Currently, various group companies of Escorts manufacture
tractors, harvester combines, motorcycles, construction
equipment, auto and railway ancillaries, and Tele and satellite
communication equipment.
In the last five decades, Escorts growth has been fuelled by the
best available technology the company has acquired from
several global giants. Among them are Goetzawerke, Mahle and
faun from Germany, Yamaha Motor Co. and Kayaba from Japan,
JCB Amford Excavators Ltd. from the U.K., Hughes Network
System from the U.S.A. and Daewoo from Korea.
Organisations restructuring initiated by the company recently,
aims to consolidating competitive strength in the six core areas:
Farm machinery, Bi-wheelers, construction and material
handling equipment, engineering and auto ancillary products,
telecommunication and financial services. The resultant
transformation would enhance the company's volume in the
Indian as well as over seas markets. The group envisages to
cross the Rs. 75,000 million by 2000 AD
During the course of its growth Escorts has also remained a
responsible corporate citizen, ever conscious of its commitment
towards the welfare of society in general and the community and
environment in which it has adopted over 60 villages, Escorts
Hospitals and Research Centre at Faridabad and Escorts Heart
Institute and Research Centre and crowning examples of the
company's belief that the welfare of business is inter wined with
the welfare of society.
ESCORTS BUSINESS REVIEWESCORTS BUSINESS REVIEW
AGRI MACHINARY AUTO COMPONENT
AUTOMOBILE
Tractors
Escorts Farmatrac
Harvester Combines
Piston, Piston Pin &
Piston rings Cylinder
liners
Aluminium Cylinder
Blocks.
Power metal component
Shock absorbers, Front
Forks
And stouts, Carburetors, magnetos, clutches
BI-WHEELERS
MOTORCYLCE
RAILWAYS
Yamaha – RX 100
Yamaha RX-G
Yamaha RX-Z
Rajdoot
Mopeds
Air brakes
Coupes
Synthetic brake blocks
Electro pneumatic brakes
Shock absorbers
CONSTUCTION EQUIPMENT TELECOM
Pin N carry cranes
All terrain pin N carry cranes
360 angle slew cranes
Agriculture Boom cranes
Front end loaders
Fork lifts, Aerial
Platforms, excavators
Vibratory Rollers
Backhoe loader
Cellular Telephone
services
VAST service
EPABX service
FINANCIAL SERVICES
Car finance
Commercial Vehicle France
Securities Trading
Personal Investment
Advertising
Consumer Finance
Equipment Leasing
COMPANY’S MISSIONCOMPANY’S MISSION
We strive to be strongest and most respected engineering
company in the country. We will achieve this by dearly
positioning our self in a competitive environment enhancing its
brand equity international quality products, market leadership,
enlarged customer base, better cost control and pricing
opportunities. We feel responsible to our employees and we
must recognize their dignity and recognize their merit. Each one
of us must uphold the core value of professionalism,
commitment and integrity in keeping with the highest tradition
of the company.
As responsible corporate citizens, we must not only encourage
civic improvement, better health and education but also protect
our environment and natural resources.
Finally we are responsible to our shareholder and for this
business must make a sound profits and thus to be investor
attractive.
We must experience with new ideas, new facilities and new
products. When we operate on these principles, the shareholder
should realise a fair return.
ESCORTS STRATEGIC ALLAINCES
GERMANY
GOETZE AG
MAHLE Gmbh
CLASS OHG
FAUN Gmbir
KNORR BREMSE Gmbh
AUGUST BILSTEIN Gmbh
HERION-WERKS Gmbh
PISTON RINGS&CYLINDER
LINERS
PISTONS
HARVESTER COMBINES
HYDRAULIC CRANES
RAILWAY BRAKE SYSTEMS
GASSPRESSUER SHOCK
ABSORBERS
HYDRAULIC PRODUCTS,
SWITCHES AND
AUTOMOBILE VALVES
JAPAN
YAMAHA MOTER CORP.
KYESBA INDUSTRY
CO.LTD
MIKUNI SHOKO CORP.
MOTORCYCLES
TELESCOPIC FRONT FORKS
MC.
UK
JC BAMFORD
EXCAVATORS LTD
AGRICULTURAL TRACTORS
FRANCE/SWEDEN
J.S. TELECOM GROUP
BOSCH DYNAPAC HEAVY
EQUIPMENT AB
ELECTRONIC PABX
ROAD CONSTRUCTION
EQUIPMENT
USA
HUGHES NETWORK
SYSTEMS
VAST SATELLITE
COMMUNICATION
SYSTEMS
SOUTH KOREA
LGI-LUCKY GOLDSTAR
GROUP
STAREX-VSE, DIGITAL,
NON BLOCKING EXCHANG
SYSTEM
MARKET SHARE OF ESCORTS GROUP
Products Market Share (%)
Agri Machinery 19.07
BI-Wheeler 28.3
Excavators Loader 86.00
Pick ‘N’ Carry Cranes 70.00
Loaders 85.00
Forklift 9.70
Piston 45.00
Rings 45.00
Shock absorber 22.00
Heavy duty shock absorber 85.00
Carburettor 15.00
Center buffer couplers 100.00
Vacuum controls valves 95.00
Electro pneumatic brakes 72.00
Compressed air brakes 38.00
COMPANY PROFILECOMPANY PROFILE
Escorts Employees Ancillaries Ltd. (EEAL), incorporated on
25th August 1971, enunciated a unique concept of employee's
participation in the ownership of the company. Initially the
business of the company was restricted to trading which was
carried out from Delhi and Faridabad. Manufacturing activities
of the company started with the commencement of commercial
production of carburetor from January 1978 in technical
collaboration with M/S MIKUNI of Japan.Company analyse
changed its named to Escorts Auto Component Ltd. (EACL)
in August last year.
Today with a Turnover of Rs. 275 million and strength of 394
people, EEAL is one of the most modern, high precision auto
ancillary plants in the country manufacturing Carburetors,
spokes nipples, clutch assemblies and pressure die casting
components for the Bi-wheeler industry. We are popularly
recognised as “MIKCARB” (our brand) in the auto mobile line,
our carburetor are being manufactured to suit Bi-wheelers
ranging frame 50- cc to 500 cc and are original equipment with
the most of the motorcycle/moped manufacturers in India,
besides marketing its product through a wide dealer network
spanning the entire country.
In addition Tobring OE supplies of carburettors to major two
wheeler manufacture e.g. Escorts, Bajaj, TVS Suzuki, Kinetic
Engg, Enfiled India, Hero Motors, EACL Markets its products
through a wide dealer networks, spanning the entire country.
The welfare shop (Owned by EACL) is also the model
dealership for Escorts range of motorcycles, Mopeds, Regional
Trading activities of companies e.g. Philips India, Advani
Oerlikon, Cut past Abrasine tools, Grind well Norton, Chiago
pneumatic are also handled by the welfare shop.
Diversification and growth a continuous process at EACL
backed by a strong research and development idea is poised to
meet tomorrow’s challenges today.
HISTORY
1971 : Incorporated as public limited company technical
collaboration-Carburettor – Mikuni, Japan.
1973 : Trading activity started
1978 : Carburettor production commenced
1980 : Technical collaboration
M/s Hoshi, Japan-Spokes & Nipples
M/s Fuji Chemicals, Japan-Clutch
1984 : Pressure die-casting poetrations commenced
1988 : Export of Carburettor to USSR
1993 : Up-gradation cum capacity expansion of Carburettor
production
1996 : Carburettor shed expansion (covered area nearly 2
times). Introduction of down draft Carburettors
planned.
ESCORTES EMPLOYEES ANCILLARIES LIMITED
AT A GLANCE
Year of commencing
production
: 1978
Company promoted by : Escorts Limited
Products Manufactured : Carburettors
Pressure Die-Casting
Clutch Assembly
Spokes and Nipples
Technical know-how : Carburettors-Mikuni, Japan
Clutch Assembly-Fuji
Chemical, Japan, Spokes &
Nipples-Hoshi, Japan
Installed Capacity : Carburettors-6, 00,000 Nos.
Clutch Assembly-10, 00,000
Nos.
Spokes & Nipples-10, 00,000
Nos.
Land & Building : 35000 SQ. M (LAND AREA)
7268 SQ. M. (COVERED
AREA)
No of employees : 394
Gross Block : Rs. 150 millions
Production Volume
(Caburattors)
: Years
1992-1993
1993-1994
Nos.
215076
279999
1994-1995
1995-1996
1996-1997
1997-1998
1998-1999
1999-2000
357877
445705
478500
491150
380500
444369
99737 till May
Cumulative Production Approx.
56 Lacks
Turn Over : Rs. 16.34 million
Shareholding Pattern : Shareholders % of Holding
Escorts Group 58.00
Financial Institutions .62
Others (EMPLOYES/
Dealers/Venders) 41.38
Total 100.00
Others Trading Business : YAMAHA MOTOR ESCORTS
LTD.
Motorcycle/Mopeds,
Accessories and spare parts.
ADVANI ORLIKON LTD
Welding sets, Welding
Electrodes and spare sets.
PHILIPS INDIA LTD.
Phillips MAKE Domestic
Luminaries and Industrial
Fittings/Fixtures.
Present Customers : Escorts Yamaha Motor Limited,
Faridabad.
Escorts Yamaha Motor Limited,
Surajpur,
Bajaj Auto Limited,
Pune/Aurangabad
Hero Motors, Ghaziabad.
Majestic Auto Limited,
Ludhiana
Royal Enfield Motor Limited,
Chennai
TVS-Suzuki Limited, Hosur.
Kinetic Engg. Limited Pune
Scooter India Limited,
Lucknow
MARKET SHARE 2000 : 11%
Distribution Network
(Carburatter & spares parts
in DEALERS Replacement
Market)
: Zone
North (Haryana, Punjab,
Delhi, UP, Rajasthan
South
(Tamil Nadu,
Karnataka, Kerala,
A.P.)
East
West Bengal, Andaman,
& Nicobar, Bihar and
Orissa
No.
of
18
20
09
West
Madhya-Pradesh,
Gujarat, Goa, &
Maharastra
15
Total 62
CARBURETTORS UNDER DEVELOPMENT
Customer Product
Bajaj Auto Ltd. K-4S 110 cc Motorcycle –4S
Sunny Export 50 cc Scooter-2S
Bajaj Scooter 150 cc Scooter –2S
M50 cc Setup Thru-2S
Escorts Yamaha Motor Ltd. Toro 50 cc Moped-2S
TVS Suzuki Ltd. TVS Champ 60 cc Moped 2S
Kinetic Engg. Ltd. 4S-100 cc Motorcycle-4S
Brat-7 cc Step Thru 2S
Royal Enfield Ltd. Bullet 535 cc Motorcycle-4S
Bullet 624 cc Motorcycle-4S
PLANTS HIGHLIGHTS
Proven MIKUNI design and manufacturing technology
Quality reliability in built into manufacturing processes.
MANUFACTURING FACILITIES
Flexible manufacturing machine/dedicated SPM’s
All critical machines from Japan/Switzerland.
Ultrasonic clearing facility.
Precision and functional parts manufacturing in house
Continuous up gradation of manufacturing facility 25% of
Gross Block invested in last two year.
State of the Arts Machine for jet making.
Precision part/assembly manufacturing in dust free and AC
environment.
SUPPORT FACILITIES (INHOUSE)
Tool Room
Pressure Die-Castings
100% in house Power Generation
Connected Load – 1066.50 KWB generation capacity- 1100
KVA
ENGINEERING AND R & D BACK UP
Tool design in house expertise available.
Tool manufacturing facilities equipped to meet jigs, fixtures
and die-casting tooling requirements.
Special purpose machines-design and manufacturing facilities
available.
Qualified and experienced manpower
Chassis Dynamometer available for in house testing.
QUALITY ASSURANCE
In–built on line inspection stages/facilities high product
quality and reliability.
Latest equipment available most imported from Japan, Italy,
West Germany and Switzerland.
Carburettor fuel flow Toning Equipment.
Pilot Circuit Testing Equipment
Main Circuit Testing Equipment
Fuel Level Checking Equipment.
Cosmo Leakage Tester.
3 Co-ordinate Measuring Machine.
Surface finish Tester.
Well-equipment meteorological facilities.
Fully equipped Chemical/Metallurgical Laboratory.
Self-contained distillation plant for Carburettor flow checking
and calibrating fluid.
METERIALS AND VENDOR DEVELOPMENT
Nearly 50 vendor supplying over 300 bought out parts.
Bought out materiel contents 40% by value for carburettors.
Import value of special raw materials and components – 7% of
total bought out.
Technical and financial support to vendors for critical
components
High inventory turnery ratio-10
Single window service to vendors
Healthy vendor – Buyer relations based on term- dealing
concept.
OTHERS SUPPORTS
Escorts R&D facilities available
Training of manpower at all levels
ISO 9001
EEAL has ISO 9001 certificate this certificate has a different
benefits which are as following. This certificate also shows that
the company has its own design and Research for the product.
BENEFITES
1. Quality up gradation through documented system.
2. Increase profitability by reducing quality cost scraps
reworking.
3. Meets customer satisfaction and aspiration.
4. Prevents recurrence of fault and reduce fire fitting.
5. Makes company more competitive.
6. Global recognition.
7. Improve communications through inter linkage.
8. Improves company productivity.
9. Improves house keeping.
10.Focuses on individual development through continuous
training.
11.Ensure achievement of quality policy and its objective.
METHODOLOGYMETHODOLOGY
The methodology opted for the collection of data for this
project report is
1. Secondary sources
2. Primary sources
3. market research
Secondary sources: The information collector about the
profile of the company was collected by various sources like
Internet and Delhi Stock Exchange Library.
Prime sources: In this project the information collated,
basically depends upon primary sources. Interview of various
person was conductive from time to time. These interviews was
conducted for marketing department, human resource
department and new projects department.
The information collected was handle with extensive care and
was duly arrange in a set format.
Market Research: A Small market research was conducted in
Faridabad to know the actual performance and brand image of
the Carburettor. A conclusion from the samples is also
mentioned in the project.
MARKETING DEPARTMENT
MARKETING CHIEF
MANAGER MARKETING (O.E.)
SR. MANAGER (SERVICE)
MANAGER MARKETING
(REPLACEMENT)SECRETARY
TYPIST CUM OFFICE ASST.
SUP SUP SUP
NORTH (EAST ZONE)
(SOUTH ZONE) (WEST ZONE)
INPLANT SERVICE MAN
TRAVELLING SERVICE MAN
TRAVELLING SERVICE MAN
SUPERVISOR (EXERCISE)
SUPERVISOR (PAYMENT & COLLECTION)
SUPEVISOR (CASTING &
PRICING)
TRAVELLING SERVICE MAN
ASSISTNAT (DESPATCH)
ASSISTNAT (CUSTOMER ACCO.)
SALE DATA IN 1991, 1992,1993,1994 (BY ACMA REPORT)
FOR 1991 1992 1993 1994
Rajdoot 175 cc 90121 75220 56612 45188
Yamaha Rx 100 75251 71718 68071 64120
Bajaj KB 100 12418 16120 34971 40791
Bullet 350 cc 25031 22178 203281 17283
Explorer 9156 12218 4982 16829
Bajaj Z 80 52448 64537 79040 81049
Hero puch 50680 62248 72551 75525
BY FORMULA ESTIMATION OF MIKCARB
CARBURETTOR
FOR 2001 2002 2003 2004
Rajdoot 175 cc 22530 18805 14153 11297
Yamaha Rx 100 18812 17929 17018 16030
Bajaj KB 100 3104 4030 8742 10197
Bullet 350 cc 6257 5544 5082 4320
Explorer 2289 3054 3745 4207
Bajaj Z 80 6556 8043 9880 10131
Hero puch 6335 7781 9069 9441
Total Estimated demand
65883 65186 67689 65623
GRAPHICAL REPRESENTATION OF EST.DEMAND
MANUFACTURING
1538 lacs
PRODUCTIVITY ANALYSIS
ESTIMATED DEMAND (BRAND-WISE)
OUR VALUED CUSTOMER
EEAL'S MARKET SHARE (%age)
EEAL'S SALES TURNOVER ANALYSIS
MASTER RECORDS
APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MARCH PRODUCTION DESPATCH (NOS)
3666033348
3711232005
2847524950
2460024925
3039530395
2670030408
2935031419
3800041293
5000046082
5050051098
4700050525
4815050067
COLL. EEAL (LACS) MIL WFS
86.6264.1265.61
157.63218.5857.88
154.01134.3460.08
112.37106.2457.11
107.5892.2060.60
161.99131.9046.28
144.25144.4759.91
108.25134.5963.60
156.70183.6366.53
189.63161.1884.11
158.80
78.84
185.14
101.41SALES M/CY.(NOS) CARB (R)
503099
245099
265899
185699
135399
375099
314399
745199
635599
796999
1127099
2627299
90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 TILL MARCH 00)
TURNOVER(EEAL +WFS) (CRORES) WFS MIL
12.48
4.123.42
11.49
3.715.29
12.14
3.995.06
15.92
3.496.20
21.42
4.948.48
27.45
8.0310.61
27.11
8.3514.41
25.16
7.8915.33
20.26
6.712.78
27.76
8.79
2.31
0.73
CARBS (P) (NOS)
275940 210772 212254 2865530 364432 445705 479300 491150 380500 444000 3700037031
CARBS (D) (NOS)
263647 219204 215076 288446 357877 443421 486935 483970 386032 444369
CARBS (D) REPL (NOS)
1289012890
1754017540
1591115911
1298212982
2973629736
3143631436
3690436904
4767447674
5671656716
6596965969
54985498
M/CY SALES 959 625 587 514 497 1108 840 639 443 789 66
MASTER RECORDS
2000-01 APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MARCH PRODUCTION DESPATCH (NOS)
4760646400
5212552058
5457044040
BILLING EEAL WFS
225.73100.76
202.63100.00
179.0786.33
SALES M/CY.(NOS) CARB (R)
231.88110.24
153.80110.06
190.0877.03
PAST PERFORMANCE
90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-Z01 (TILL JUNE)
TURNOVER(EEAL + WFS) (CRORES) WFS MIL
12.48
4.123.42
11.49
3.715.29
12.14
3.995.06
15.92
3.496.20
21.42
4.948.48
27.45
8.0310.61
27.11
8.3514.41
25.16
7.8915.33
20.26
6.712.78
27.76
8.79
8.94
2.67
CARBS (P) (NOS)
275940 210772
212254
2865530 364432
445705
479300
491150
380500
444000
154301
CARBS (D) (NOS)
263647 219204
215076
288446 357877
443421
486935
483970
386032
444369
142498
CARBS (D) REPL (NOS)
12890 17540 15911 12982 29736 31436 36904 47674 56716 65969 14297
M/CY SALES 959 625 587 514 497 1108 840 639 443 789 459
Monthly Sales & Purchase of Carburettor & Spare Parts1999-00
As On
SaleS.No. MODEL Apr. May. Jun. Jul. Aug. Sep. Oct. No
v. Dec.
Jan. Feb. Mar.
1 Model 897 1224 15962 Rajdoot 826 887 13593 Yezdi 41 83 314 Vijay super 23 35 1305 Silver plus 25 143 2186 Explorer 61 61 1247 Bajaj Z-60 1325 2296 15628 Hero Puch 200 218 3449 TVS Super Champ (VMX) 25 9 1910 Scooter (XLS) 57 3 10811 RX - 100 52 29 1212 KB - 100/125 7 0 013 Bullet -500 3 0 714 Sunny Zip 32 42 24
15 Hero Winner 0 6 016 Kinetic Pride 5 13 4117 H.Gizmo 15 7 718 Bajaj Chetak 0 0 019 K4S 5 43 17
Total 3599 5099 5599 0 0 0 0 0 0 0 0 0Ave. Value 457.63 440.2
8463.84
Sales Value of Carburettor & Spare PartsApr. May. Jun. Jul. Aug. Sep. Oct. No
v. Dec.
Jan. Feb. Mar.
A Carburettor 16.47 22.45 25.97B Spares 2.10 2.94 3.11C Float &n Gasket (SPD) 0.53 0.91 0.71
Total 19.10 23.30 29.79 0 0 0 0 0 0 0 0 0
S.No. MODEL Apr. May. Jun. Jul. Aug.
Sep. Oct. Nov. Dec. Jan. Feb. Mar. Total
1 Rajdoot 1140 1001 2540 46812 Bullet 0 0 0 41933 Yezdi 0 0 0 04 Vijay super 500 220 05 Silver plus 0 0 0 7206 Explorer 660 2840 3258 07 Bajaj Z-60 0 491 500 67668 Hero Puch 0 9 0 9919 TVS Super
Champ (VMX)0 0 500 9
10 Scooter (XLS) 50 0 40 50011 RX - 100 0 0 0 9012 KB - 100/125 0 25 0 013 Bullet -500 0 0 0 2514 Sunny Zip 0 0 0 015 Hero Winner 0 0 50 5016 Kinetic Pride 0 160 0 16017 H.Gizmo 0 0 0 018 Bajaj Chetak 6 0 144 15019 K4S 0 200 0 200
Total 2468 5904 10615 0 0 0 0 0 0 0 0 0 18625
PRODUCTION & DESPATCH STATUS APRIL 2000
MODEL PRODUCTION
DESPATCH
OE SPD WFS TOTAL
RAJDOOT 11460 9160 1000 1140 11300RAJDOOT 1K1 0 0 0 0 0YAMAHA RX-100 2115 1690 0 50 1740BULLET - 350CC 3780 2506 800 3366SILVER PLUSEXPLORERTVS XLS 100 100 100TVS VMS 360 450 450Z- 80 9350 8061 840 8901SPIRIT 6280 5945 5945KB - 125KB - 4S/BOXERSUNNY ZIPHERO PUCH 6505 6620 6160HERO SCOOTER 1320 1302 1302HERO GIZMO 595 400 400KEL PRIDEKET SX 5725 6160 6160LML TRENDYYEZDIVIJAY SUPERDD CHETAK 6 6 6HONDA 10 10 10GIZMO - 4S 100 100
SAMPLE TOTAL 47606 42504 1000 2396 46400MKTG/RNS
PRODUCTION & DESPATCH STATUS MAY 2000
MODEL PRODUCTION
DESPATCHOE SPD WFS TOTA
LRAJDOOT 11940 9160 1490 1000 11650RAJDOOT 1K1
YAMAHA RX-100 770 1530 1530BULLET - 350CC 3208 2800 820 3620BULLET 500CC 200 182 25 207SILVER PLUS 700 500 500EXPLORERTVS XLS 100 100 100TVS VMS 360 450 450Z- 80 9680 8281 1560 9841 8901SPIRIT 6350 6706 6706KB - 125KB - 4S/BOXER 200 200 200SUNNY ZIPHERO PUCH 9000 8290 500 8790HERO SCOOTER 4217 3825 3825HERO GIZMO 1550 1887 1887KEL PRIDE 160 160KET SX 4170 3142 3142LML TRENDYYEZDIVIJAY SUPERDD CHETAK 140HONDAGIZMO - 4S
SAMPLE TOTAL 52125 45803 1490 4765 52058MKTG/RNS
REVISED BUSINESS PLAN
CUSTOMER PRODUCT BUDGET QTY.
2000-01
BUDGET QTY.
2001-02
BUDGET QTY.
2002-03
EYML (FBD).
Rajdoot 175 (OE)
Rajdoot 175c (SPD)
70000
18000
63000
18000
56000
18000
EYML (S) Yamaha Rx-100 15000 18000 18000
BAL (A'BAD) Bajaj Spirit
Bajaj - 4s
58000
0
64000
0
70000
0
BAL (PUNE) Bajaj Z-80 (OE)
Bajaj Bravo
84000
0
60000
20000
54000
24000
EML (C) Bullet - 350cc- 4s
Bullet - 500cc - 4s
Explorer/S.Plus
18000
1000
0
19000
1000
0
20000
1000
0
MB & S (G) Hero Puch 63cc
Hero Scooter
66000
18000
54000
12000
50000
12000
MAL (L) Hero Gizmo/Pacer
24000 21000 19000
KEL (PUNE) Kinetic SX
Kinetic Pride
57000
0
55000
0
50000
0
KHML (PUNE)
Kinetic Honda 36000 43000 50000
LML (KANPUR)
LML Trendy
LML Scooter X-Press
12000
0
30000
6000
11000
12000
KB & S Kirloskar B&S 206cc
0 21000 50000
W/SHOP (F) Rajdoot 175cc
Bullet 350cc
Z-80 (O)
Vijay Super
Yezdi
Hero Puch
100ccHero Honda
TVS Champs
Bajaj Chetak
BajajKB-100/125
Explorer/S. Plus
Yamaha RX-100
16000
11000
26000
500
500
5000
0
0
30000
0
4000
0
15000
10000
25000
500
500
5000
10000
4000
40000
0
4000
0
16000
11000
26000
500
500
5000
15000
8000
50000
0
4000
0
Total 570000 659000 700000
PRICES OF THE VAROIUS MODEL CARBURETTORS
SIL PLS WEF 16.11.96 5.8.98
EXPLR. (THRU WFS)
RS 320.00 335.00
SIL PLS WEF 4.3.1986 1.9.87 22.10.87 22.12.87 1.8.88 19.10.88 20.1.89 1.07.90 01.10.90 23.3.93 19.8.93 1.10.94
EXPLR RS 120.00 124.00 135.00 130.00 140.00 157.60 167.60 172.00 179.60 211.30 205.00 216.00
WFS 1.1.1995 1.9.95
RS 225.90 250.00
PRIDE WEF 1.7.1990 1.10.90 112.91 1.9.94 1.6.95 1.1.96 28.5.96 8.12.97 1.2.98
RS 175.10 182.00 195.00 207.00 214.50 227.00 232.00 240.00 245.00
KEL-SX WEF 30.11.98 10.9.99
RS 442.00 305.00
LMS WEF 15.7.98 18.2.98
RS. 264.00 257.00
TVS WEF 27.16.91 01.9.91 01.8.94 01.4.95 01.4.96
RS. 182.00 201.00 215.00 222.00 230.00
XMCL WEF 26.2.00
RS. 305.00
CYGNET/SPIRIT
WEF
RS
30.7.1997
234.00
01.8.97
246.00
1.17.99
241.00
1.10.99
244.57
1.1.2000
244.57
KB-100 WEF
RS
30.1.1995
385.00
01.1.96
425.00
HERO PUCH
WEF
RS
01.6.1988
124.95
01.1.89
156.00
01.8.89
165.00
01.7.90
170.00
01.10.90
177.00
1.10.91
190.00
1.10.92
198.50
1.9.93
190.50
1.6.94
192.45
1.9.94
205.00
1.12.94
208.00
1.4.96
222.00
HERO(S) WEF
RS
18.5.1995
455.00
1.4.99
375.00
HERO GIZMO
WEF
RS
1.7.1990
105.00
28.4.91
177.00
09.6.93
198.50
23.7.94
196.00
10.9.94
205.00
1.12.94
208.00
1.1.96
226.00
09.1.95
231.00
21.11.96
232.00
27.8.97
247.00
1.1.98
250.00
BULLET 350CC
WEF
RS
20.3.1985
231.00
09.09.87
250.00
31.10.87
240.00
02.4.88
244.00
26.10.88
258.00
1.6.89
273.00
17.9.92
310.00
1.10.92
330.00
17.4.94
317.00
1.10.94
334.00
1.1.95
348.00
1.9.95
383.00
WEF
RS
01.4.1996
393.00
01.6.96
401.00
01.10.97
423.00
1.5.99
430.00
BULLET 500CC
WEF
RS
28.8.1987
301.50
01.08.88
313.30
01.10.92
350.00
17.4.94
339.00
1.10.94
357.00
1.1.95
369.00
1.9.95
410.00
01.4.96
413.00
01.6.96
421.40
1.10.97
456.40
MARKETINGMARKETING
The product manufactured by ESCORT Auto Components Ltd.
is Carburettors, Oil Pumps, Clutches, which is an
Industrial product.
Industrial marketing is very much different from other consumer
products marketing. In Industrial Marketing the product is
consumed by another manufactures so the target is the other
Automobile manufacturer.
Definition- When the marketing efforts are towards an industry
or a whole, rather than individual consumer like you and me is
Industrial Marketing.
For marketing of carburettors EACL practices two types of
marketing concepts: -
1. Original Equipment (OE) Marketing
2. Replacement Marketing
Concept of Original Equipment (OE) marketing (and how it
is done)
Original Equipment marketing is done in a very different
fashion as compared to other marketing practices.
The OE marketing followed by EACL is done in a certain
fashion. A high level team, which consists of Plant head,
Manufacturing department head (automobile engineer)
Marketing head and the Planning head is made.
This high level team firstly does its home work and sets
accordingly its target to approach on the basis of market
Intelligence system. This high level team approaches various
prestigious two wheeler manufactured like Hero Honda
Bajaj etc. The team negotiates with the other company high
level officials about the product they want to manufacture
referring to particular model. There is now, negotiation goes on
various topics like the design, quality, material, accessories,
spare parts. Etc.
After all the above points are finalised, outline of that project is
prepared, this goes to the costing department of the two
companies. They evaluate the cost of the product, quantity they
want. On the basis of this the price is negotiated between the
two and is final format is prepared.
Now the planning is final and a deal between the two is
fianlised mentioning the above key issues. The automobile
manufacturer releases the design of the Carburettor to the
company. These designs are analysed in EACL by highly
qualified engineers. The changes in the design are done if
required. EACL then manufactures a sample Carburettor
according to the design given this sample is dispatch to the
automobile company for test. The performance of the
Carburettor is tested and is passed by the company.
The performance and problem of the product is timely check by
the service department.
Concept of Replacement Market:
It is practically seen that Carburettor of vehicle has certain life
expectancy. Constant wear and tear of Carburettor occurs with
usage of vehicle. Therefore in order the maintain optimum level
of fuel mileage and efficient running conditions of the vehicle,
it become essential to replace worn out Carburettor. For
purchasing new Carburettor the owner of the vehicle go to
authorised workshop of the dealer of vehicle where he by
genuine Carburettor or go to local workshop to get sub
standard/duplicate carburettor. So replacement market is a
market which consists of genuine Carburettor and
substandard/duplicate Carburettor produced by local
manufacturer.
MARKETING STRATEGYMARKETING STRATEGY
PRODUCT
Under Replacement Marketing
Company manufacture carburettors of those vehicles, which has
high sales and also has a high population in the market. Higher
the sales/population more the number of users, more the number
of Carburettors, demanded by the user because of wear and tear
of the product.
At the same time company also wants to manufacturer
Carburettor of those vehicle models in which the competitors
are lesser. (For e.g. company manufactures Carburettors for
Enfield motors in which only two competitors are there).
Under OE Marketing
Products are manufactured according to the automobile
manufacturers. They give the design to the carburettor
manufacturer and accordingly product is manufactured.
PRODUCT LINE
Pressures Die Castines:
EACL is geared to deliver a wide rang of Die cast components
to zero draft angle, with the Back up of a precision tool room.
EACL manufactures a side range of components for the Rajdoot
175 cc, Yamaha RX-100 and Yamaha 350 cc vehicles to
catering to it own needs.
Clutch Assemblies:
Made with technical assistance from M/S Fuji of Japan, their
high-powered clutch assemblies are fitted in Rajdoot 175 cc and
Yamaha 350 cc and Yamaha 350-cc range of motorcycles. Major
components for the Yamaha RX-100 are also manufactured at
EACL.
Spokes and Nipples:
With technical know-how from M/S Hoshi of Japan, EACL is
one of the leading manufactures of swaged spokes and nipples.
The Rajdoot 175 cc, Yamaha 350 cc, and the Yamaha RX-100cc
are equipped with spokes and nipples frame EEAL.
Mangnetos:
The latest addition to the EEAL range of products is the high
powered flywheel Magneto, to be Manufactured under technical
collaboration with leading Japanese collaborators.
Carburettors:
'MIKCARB' fine Carburettors are manufactured with technical-
how from M/S Mikuni of Japan. Designed for law commission,
these carburetor ensure high efficiency and better fuel Economy
in addition to festurs such as law attrition, longer life and better
pick up. The present range includes carburetors for the Rajdoot
175 cc, Bullet 350 cc, Yezdi 250-cc Vijay Super Bajaj Z-80,
Kinetic Spark, Hero Puch, Silver plus, Explorer, Yamaha RX-
100 cc.
Product Profile:
There is no such thing as "suction" in engines. Don't suck air
and fuel into the cylinders, infect, Air and fuel flaw into an
engine because the pressure in the cylinders is lower than
atmospheric Pressure. As a result, atmospheric pressure forces
the air/fuel mixture into the engine like a giant Hand pushing on
the corroborator. Our study is concerned here with pressure
differential. It's a Simple case of finding the path of latest
resistance. The carburetor intake stroke (caused by downward
Motion of piston) creates the flow. .
Function Of Carburettor:
Carburettor performance the following three function:
a) The function of Carburettor is to produce combustible air
fuel mixture by breaking fuel into tiny Particles in the form
of vapour a process known as atomisation.
b) It mixture by the fuel with air in a proper ratio and to deliver
into the engine.
c) To control the engine output by regulating the amount. An
ideal mixture burns without leaving any excess air or fuel and
is the key efficient engine performance. The ratio of fuel and
air is called the mixture ratio and is generally expressed by
the weight proportion. The erratically, the amount of air
required for complete combustion of 1 gram of fuel under
normal condition is 15 grams.
Mixture Ratio = 15 grams of air 1 grams of fuel
The ideal air-fuel ratio is 15:1 i.e. 15 grams of air for 1 grams of
fuel. The ratio however, varies from as 1:1 during cold starting
to 8:1 during idling and 14-16: I during cruising. For any
Vehicle where fuel consumption as lowest, which is normally
40-50 kms Per hour.
PRICE
Under Replacement Marketing
The price of the products is defined on the basis of competitors.
Under this concept the price for competitors is offering is
considered. The company always keeps the price slightly lower
than, what competitors are offering. A pre study is done in
which all the costing part of the product is done. Price is also
text on the basis of BEP (Brake Even Point) analysis, company
always wants to keep higher profit margin, but also considers
the profit margin with which they can compansate with . Price
with also fixed up on the basis of decision of volume sales.
Under OE Marketing
Price factor is negotiated between the two companies. There is
no pre define format for asserting the price. The cost /accounts
departments of the both the companies negotiate on the price
factors. The collective bargaining between the two takes place.
They also consider the volume of quantity the company wants.
PRICE MOVEMENT - MIKCARB CARBURETTORSRAJDOOT
WEFRS
01.4.1986202.00
01.4.87202.99
1.10.87209.99
1.1.88215.99
1.5.88227.54
1.8.88234.97
01.6.89242.63
9.4.90246.48
01.7.90251.33
1.10.90256.63
1.1.91265.10
16.9.91280.30
WEFRS
1.6.92292.00
1.11.92296.20
1.4.94286.20
3.10.94297.95
1.1.95319.00
2.4.96329.00
1.7.96334.00
1.2.2000350.00
RAJ(SP.D)
WEFRS
31.3.98431.00
1.2.2000438.00
RX-100 WEFRS`
24.9.91336.00
1.4.93667.00
1.6.95660.00
5.4.96670.00
1.7.96680.00
RX-100 (SP.D)
WEFRS
1.4.98782.00
M-80 WEFRS
22.1.98128.00
1.7.88135.00
1.8.88140.00
1.10.88160.00
1.4.89165.00
1.4.90170.00
1.7.90182.00
2.11.91195.00
1.9.94207.00
1.4.952.13.00
1.5.96225.00
1.8.97240.00
WEFRS
1.7.99225.00
1.10.99226.16
1.1.2000228.48
M-80 (SP.D)
WEFRS
24.11.97256.80
KB-4S WEFRS
30.1.95425.00
26.5.96470.00
S.ZIP WEFRS
22.4.96234.00
1.8.97246.00
Explorer WEFRS
11.2.96207.00
1.8.97240.00
Price ListMIKCARB CARBURETTOR
WITH EFFECT FROM 15.04.99S.No. Model Transfer
PriceDealers Nett Ass.
ValueBED 16%
1 Rajdoot 421.00 575.00 495.69 79.312 Bullet 421.00 580.00 500.00 80.003 Yezdi 390.00 570.00 491.38 78.624 Vijai
Super390.00 570.00 491.38 78.62
5 Silver Plus
260.00 365.00 314.66 50.34
6 Explorer 260.00 365.00 314.66 50.347 Baja M-
80260.00 338.00 291.38 46.62
8 Hero Puch
260.00 331.00 285.34 45.66
9 TVS Astra
260.00 345.00 297.41 47.59
10 Scooty 260.00 345.00 297.41 47.5911 RX - 100 755.00 1050.00 905.17 144.8312 KB - 100 523.00 690.00 594.83 95.1713 Bullet -
500515.00 690.00 594.83 95.17
14 Sunny Zip
260.00 345.00 297.41 47.59
15 H. Scooter
415.00 570.00 491.38 78.62
16 K. Pride 260.00 345.00 297.41 47.5917 H. Gizmo 260.00 345.00 297.41 47.5918 KB-125 523.00 690.00 594.83 95.1719 KB-4S 563.00 810.00 698.28 111.7220 Bajaj
Chetak210.00 275.00 237.07 37.93
We will give a discount of 5% on Dealers Network of Rs. 275.00
MARKET SEGMENTATION ANDMARKET SEGMENTATION AND DISTRIBUTIONDISTRIBUTION
CHANNEL
EEAL'S marketing division concentrates on following activities:
1. Supply to original equipment manufacturer (OEM)
2. Supply to replacement market.
a) Supply to welfare shop (major dealer).
b) Supply to spare part division.
SUPPLY TO ORIGINAL EQUIPMENT MANUFACTURER
(OEM's)
The automobile industry depend to large extend on the ancillary
industries for the supply of numerous parts and components
needed for assembly of vehicle, therefore EEAL'S major
emphasis is laid on one of its product line consisting of
carburettors manufacturing. The company makes Carburettor for
its own group and other Bi-Wheelers manufacturers as per their
specifications and design requirement. For example Carburettor
is manufactured for Bajaj Auto Ltd. Enfield India Ltd. Majestic
Auto Ltd., EYML, etc.
SUPPLY TO REPLACEMENT MARKET
EEAL also supply Carburettor and no of components and spare
parts for the replacement of worn out Carburettor or parts to
keep vehicle roadworthy.
DISTRIBUTION CHANNEL:
For the distribution and selling of Carburettor and its spare
parts. There is a wide networking of dealers spreaded all over
the country. There are 65 dealers in all over the country.
PROMOTION
Under OE Marketing
Company takes up promotion into ways.
1. Company to company promotion
2. National and International exhibition
Company to company promotion: In the first method
companies higher officials market the product. The higher
officials (including plant head, marketing head and
manufacturing head) approaches the various companies and
demonstrate them their products and what all they can
manufacture according to their requirements. At the same time
these officials convenience them about the quality and price of
the products and assure them for quality of service.
A special Service Cell is there in the company to look after the
product, which is been used, in the automobile company. They
duly check the performance of the product and check if any
problem arises.
National and International exhibitions: company promote
their products in the exhibitions held in India and abroad.
Recently company had participated in and exhibition held in
China named GUANGHZO which was on auto component
products this was held in November last year. Participation in
this exhibition was done to cater international customers.
Company has also recently received an order from a Japanese
automobile company.
Under Replacement Marketing
The product is promoted by the joint effort put in by the
company and their dealers.
By the company
Company has presently taken up a promotion camp in Patiala
(Punjab,India). Where they launched the Bajaj Scooter
carburettor. Patiala was chosen as the region of launch because
of the simple fact that there is the largest population of Bajaj
Scooter. So larger the number of Bajaj Scooter large the number
of repair/ maintenance required. In this camp company
organised the workshop camp for mechanic were the entire
major mechanic invited and the product was demonstrated to
them. A trial test was also given on Bajaj Scooter to show them
the actual performance of the product.
Free sample was given to all the mechanics to get satisfaction in
terms of quality of the product.
As major dealer of the company Welfare Shop in Faridabad is
taking up various promotional camps to promote the product.
Company gives extra benefit to the dealer to markets this
product like. Company was offering dealers a Target based
commission on every sale of 30 Carburettors Company was
giving 2 Carburettor free.
All the years company introduces one are the other promotional
schemes for dealers like discounts pricing These are given on
the basis market conditions (sales).
MARKET SURVEYMARKET SURVEY
Market survey is very important to decide method to estimate
the demand of 'MIKCARB' Carburettor in the replacement
market. Market survey is very necessary to have practical
approach to get more practical results. For my project I did
market survey with specific questionnaire and personal meetings
with mechanics and supervisors and workshops of authorised
dealer of Bi-wheller manufacturing company to who
'MIKCARB' is supplied.
For market I took size 0.5
FINDINGS OF MARKET SURVEY
Findings of markets survey are as follows:
1. The main problems, that are concerned with MIKCARB
Carburettor are overflow, access of air which result is low
average over-race and starting problems. It is seen that
overflow problems is very frequent.
2. Since Carburettor performance is very good and age is very
high so rate of replacement per year is very low.
3. Average rate of MIKCARB Carburettor is 10 years.
4. 50% of vehicle Z-80 and Hero Puch are fitted with
MIKCARB and 50% of fitted with SPACCO. It is generally
observed that MIKCARB is slightly better than SPACCO.
5. It is also important to note that awareness about Carburettor
and its function is very low about 5%.
6. Due to lack of awareness most of the customer 40-50 go to
the local workshop where they get duplicate/substandard.
Carburettor generally at the time of replacement around 25-
30% go to authorized dealer where they get genuine
Carburettor and also good number of people run their vehicle
with worn about Carburettor as long as they can.
METHODOLOGY OF DEMANDSMETHODOLOGY OF DEMANDS
ESTIMATIONESTIMATION
On the basic of market survey and data of Bi-wheeler sales from
ACMA report (Automobile components manufacturer
association of India) the methodology for demand.
Estimation of MIKCARB Carburettor in replacement market is
explained further. First there are some assumptions which I have
considered.
ASSUMPTIONS:
1. I have considers the age of Carburettor 10 years and after 10
year it is replaced.
2. I have assumed that only 25% owner of the vehicle go to the
authorised dealer where they get original MIKCARB
carburettor at the time of replacement.
3. I have assumed that age of a vehicle is not more than 20 year
so replacement of a carburettor is done at one time only.
ESTIMATION OF DEMAND
To estimate the demand of the "MIKCARB" for the further i.e.
for 2001, 2002, 2003,2004, we will consider the sales data for
the year 1991, 19921993,1994 respectively of the bi-wheeler in
which MIKCARB is used originally because carburettor of these
vehicles will be replaced after 10 years.
Before going any further we will keep in mind following points:
1. 50% vehicle of the Hero Puch and Bajaj Z-80 are fitted with
MIKCARB carburettor and 50% are fitted with SPACCO
carburettor.
2. There are 18 bi-wheelers in which MIKCARB carburettor is
used but we will consider only those whose sales were
considerably good in 1991, 1992, 1993, 1994, and mostly
which are still popular in the market.
Therefore estimation of demand of MIKCARB carburettor we
will consider following models:
a) Rajdoot 175 CC
b) Yamaha RX 100 CC
c) Bajaj KB 100 CC
d) Enfield Bullet 350 CC
e) Explorer 50 CC
f) Bajaj M 80
HENCE THE FORMULA:
Estimation demand of MIKCARB carburettor for 2001 in
replacement market
= 25% OF SALE OF Rajdoot motorcycle 1991
+ 25% of sale of Yamaha RX 100 CC in 1991
+ 25% of sale of KB 100 CC in 1991
+ 25% of sale of Bullet 350 CC in 1991
+ 25% of sale of explorer in 1991
+ 50% of (25% of sale of Bajaj M80 in 1991)
+ 50%of (25% of sale of Hero Puch in 1991)
Similarly we can estimate demand for 2002, 2003, and 2004.
MARKETING INTELLIGENCE SYSTEM MARKETING INTELLIGENCE SYSTEM
Marketing intelligence system is a system under which, an in-
depth study of market is done. In which one gather information
about its competitors, and future demand potential is analysed.
According to it one set his future strategy. It is an ongoing
process.
In Escort Auto Component Ltd. there is market Intelligence
team which consists of Engineers and Marketers. These people
are spread all over India, where all the dealers are. Now from
these process information of facts about market and competitors
is extracted information related to.
Competitor moves to market their products.
What all other new products/ technology introduces?
In What all other area competitors are venturing into.
What are the reason for success/loss of the competitors
products
What are the pit holes of the competitors
What is their performance?
What is their strategy related to price, distribution.
What benefit other company is giving to dealers to
promote sales.
What all promotion tools they are following.
What is the sale for competitors, in which model?
A SWOT analysis of the competitors
What is the customer response to various bands.
What customer wants/looking for
What problems they see pacing
What is the satisfaction level of customers in terms or
brands?
What is their standing in the market.
In other words an eagles eye is kept on the market movement A
very in-depth study is done timely. After collecting these facts,
they are set accordingly in a set format. Then these facts, data,
information is analysed and handled very carefully and
intelligently. The or department which are mainly included.
Marketing
Projects
These people analyse these informations and concludes the
followimg.
In what all market company can venture into
How much strong they are in the market.
How they can improve marketing strategy in future.
Now where they can give a cut adage to the competitors
products.
To what all competitors they can fight too and how.
What all other products they can introduce to targets market.
On analysing the above it future market strategy for Escort Auto
Components and in prepared.
CRUX OF EACL MARKETING AND COMPANY
PERFORMANCE
PHILOSOPHY
TOTAL SATISFACTION
TO
(1) CUSTOMERS
(2) EMPLOYEES
(3) SHARE HOLDERS
(4) VENDORS
(5) COMMUNITY
Q.C.D.D.A
Q QUALITY
PRODUCT
SYSTEMS
Services
C COST
COMPETITIVE PRICE
COST DOWN
MFG. OVERHEADS
SALES & ADMN.
MANPOWER
INTEREST
INVENTORY DOWN
D DELIVERY
TIMELY
LOSSES REDUCTION
D DEVELOPMENT
PRODUCT
TECHNICAL TIE UP
SELF SUFFICIENCY IN R&D
COMPETITIVE SPECIFICATIONS
FASTER DEVELOPMENT
DIVERSIFICATION
MARKET
EXPORT MARKET
NEW CUSTOMERS
TRADING BUSINESS
A ATTITUDE
POSITIVE
CULTURAL CHANGE
QUALITY IMPROVEMENTS
1. ISO 9001 certification Nov. 98 TUV-Germany
2. Cross functional teams
3. Self inspection by operators
4. Few examples of counter measures
4.1 Electric screw drivers
Introduced
Better emmission control
Leakages checked
Improved consistency
4.2 Presetting masters introduced
Less setting time
Less wastage’s
4.3 Material handling pocketed trays
Less damage
Less rework
4.4 REWORK/REJECTION DISPLAY/DAILY DISCUSSION
IMPROVESPR
(STRAIGHT PASS RATIO)
4.5 JIGS fixture/gauge caliberation started
Less rework
Less rejection
Consistent quality
4.6 Storage improved
4.7 Critical operations - process capability improved
4.8 Vendor upgradation
8 major vendors
Process capability
System improvement
Tools/gauge caliberation
Cleaning
Vendor rating started
FOCUSFOCUS
4.9 Contamination level reduction
1. New washing cycle introduced
2. Washing stage added at mid assembly. stage.
3. Ultrasonic cleaning agent PH value maintained (checked - 2times/day)
4. Handling tray periodical washing
5. Cotton knitted hand gloves usage discontinued
6. All opening in assembly. line closed
7. F test & overflow test stands additional filters installed
8. New digital pilot circuit & main circuit test stands installed..
9. New digital pilot circuit & main circuit test stands installed
COST
PRODUCT AT COMPETITIVE
PRICE
COST DOWN ACTIVITIES
MATERIAL COST
98-99 99-2000 SAVING
EXCESS CONSUMPTION
REDUCED
4.79% 2% 2.79%
NEGOTIATIONS/S.O.B.
CHANGE
VENDOR
CONSOLIDATION
0.6%
PACKING
MANUFACTURING OVERHEADS
TOTAL MANPOWER REDUCTION
MANHOURS/CARBURETTOR-PRODUCTION SHOP
MULTIMACHINING
MULTI SKILLING/REDEPLOYMENT
SELF INSPECTION
SECURITY/JANITORIAL/GARDENING ON CONTRACT
Savings
OVERTIME REDUCED Nil After Oct.
CUTTING TOOLS 20.72%
CONSUMABLES 10.50%
OIL & LUBRICANTS 16.00%
POWER/FUEL 16.00%
WELFARE EXPENSES 25.00%
SALES ADMINISTRATION OVERHEADS
SAVINGS
TRAVELLING
COMMUNICATION
PRINTING/STATIONARY 14.00%
PROFESSIONAL CHANGES
INSURANCE
PACKING/FORWARDING
INTEREST COST DOWN
Sale of non performing assets
Apox. Rs. 100 lacs
Inventory from 56 days to 45 days
Reduction by 20%
DELIVERY
Straight pass ratio improved from 80% to 90%
Losses reduction
Daily monitoring /discussions /countermeasures.
Downtime due to material/tools/power setting reduced by 10%.
Absenteeism reduction from 17% average to 14% reduction by
17%.
Daily production meeting for planning & execution.
PRODUCT
Technology the up
Oil pump/carburettor discussion on
Self sufficiency in R& D
A. equipment added
Chassis dynamometer
Co equipment volume check
Equipment planned
Engine dynamometer
B. Manpower added from 7 to 12 addition - 71%
C. R&D organisation tie-up from Japan - under discussion
For training/design up gradation/quality up/process
improvement
COMPETITIVE SPECIFICATION DEVELOPMENT BY
MIKUNI TRAINED ENGINEERS AT EEAL
Kinetic Motors (scooter) 9% better fuel efficiency over Keihen
(kinetic Honda)
Bajaj z - 80 better fuel efficiency over Spacco.
1st Indian oval venture carburettor developed by EEAL
EACL down draught carburettor for Bajaj Chetak - 10% better
fuel efficiency over Spacco.
Import substitute for Bajaj boxer 67% cheaper than Keihin
Modified Rajdoot with cat. con. low co carburettor to meet e
2000 norms.
Modified carburettor for enfield to meet 2000 norms.
DEVELOPMENT
Started ISE PF 3d modeling/cad system
New body, carburettor development times less than 10 months.
Modified body, carburettor development times less than 5
months.
PRODUCT DIVERSIFICATION PLANS PHASE - I
A. Oil pump
B. Chain Tensioner
PHASE - II
A. Fuel Injection
B. Throttle Body
C. A.I.S.
MARKET
Development7.2.1 New Customers - Carburettors - 1999-2000
A. TWO WHEELERS
1. Bajaj Auto Ltd. M80 E2000
2. Bajaj Auto Ltd. Spirit
3. Bajaj Auto Ltd.
(Spares0
Chetak/Super
4. Bajaj Auto Ltd. Bravo (Under Dev.)
5. Kinetic Motors Kinetic Honda (Zx/Et)
6. Kinetic Motors Scooterrte-Sx
7. Lml X-Press (Under Dev.)
8. Hero Honda (Spares) Motorcycle (Under Dev.)
B. Stationary Engines
1. Birla Yamaha Generators (Under Discussion)
2. Briggs & Stratton Generators (Under Discussion)
3. Greaves & Cotton Enerators (Under Discussion)
EXPORT MARKET
China Carburettor Samples Approved
Egypt Carburettor Samples Under Test
TRADING BUSINESS
Fuel Cock For All Two Wheelers
Focus On Advani & Philips
Additional Agencies Under Discussion
Almonard Fans
TATA MIG WIRE
CULTURE CHANGE
ORGANISATION CULTURE CHANGE SURVEY
ATTITUDE
Steps Taken To Improve EACL Ocia Pace Profile
Openness
Get-togethers
Help In Personal Crisis
Suggestion Scheme
Job Rotation
Provocation
Training (Skill Upgradation)
All Level Involvement In Business Restructuring
Management Review Meetings/Department Review Meetings
Frequent Customer Visit
Collaboration
Cross Functional Teams
Role Modeling
Participateve Goal Settings
Motivation/Recognition Of Good Work
Ownership
Awareness & Training
Competition
Q.C.D.D.A.
1999-2000 2000-2001
2 MAN DAY / YEAR PERSON
4 MAN DAY / YEAR PERSON
NEW WORK PRACTICES
I.E. Norms
Self Inspection
Autonomous Maintenance
Multi Machining
Multi Skilling (Redeployment)
Self Material Handling
Self Setting
Tpm/5s/Group Activities
BODY MACHINING
Critical Parts Machining
Jets Machining
Inspection & Testing Facilities
R&D Facilities
Training Facilities
Computerisation
ORGANISATIONAL STRUCTURE OF EACL
EXECUTIVE DIRECTOR
MARKETING DIRECTOR
ASSOCIATE DIRECTOR
FINANCE DIRECTOR
PERSONAL ADMINISTRATION
GENERAL MANAGER (OPERATION)
QUALITY SPOKES & NIPPLES
MAINTENANCE TOOL CARBURETTOR
CHART ON 5 YEARS STRENGTH
Manager
Supervisor
Staff Workers
Casuals
Trainees
Apprentices
Mar.96 22 66 109 29 135 1 26
Mar.97 28 63 98 196 125 6 29
Mar.98 24 68 105 193 133 4 25
Mar.99 32 67 109 191 113 2 23
Mar.00 25 56 69 173 125 2 11
Total Employees strength
March 1999 – 535
January 2000-436
January 2000 (Nov) - 414
HR FUNCTIONS
Apart from putting inputs (Human Resource), planning,
organising, directing, collecting and look at the outputs. HR
department has to lake up training development of employees,
solving their problems, welfare activities, salary and wages,
grievance handling, setting disputes, taking disciplinary actions,
collective bargaining between company and worked union,
employees morale. HR department has to see to all the
employees. HR department of EACL treats them as their family.
In which coring is also done at the same time if needed scolding
is taken up. We are like “Mother and they are over children”
says the company personnel chief.
To maintain above various programs is taken up by HR
department.
1. Human resource forecasting and planning
2. Employment and related facts
3. Training and Development of employees
4. Manager development programme
5. Employee benefit, services and welfare
6. Handling employee problems
7. Labour relation
8. Communication program
COMMUNICATION PROCESS
MESSAGE MESSAGE MESSAGE MESSAGE
SENDER ENCODING CHANNEL DECODING
RECEIVER
FEEDBACK
NOISE
TYPES OF COMMUNICATION
ON THE BASIS OF RELATIONSHIP ON THE BASIS OF EXPRESSION
FORMAL INFORMAL FORMAL INFORMAL WRITTEN
ON THE BASIS OF DIRECTION
DOWNWARD UPWARD HORIZONTAL
COMMUNICATION BARRIERS
In this company communication barriers have been classified
into three categories "Barriers arising from the fact that
individual are involved in Communication and they differ from
one another because of their different geographic, economic,
social background etc.
These barriers may be called pre-existing barriers to
communication" which a company inherits because they are not
common in society.
Barriers arising from the company's climate which tend to
satisfy communication. These include: -
1) Fears
2) Poor Supervision
3) Insincerity & Lack Of Confidence As Inter-Related
MECHANICAL BARRIERS
Mechanical barriers are connected with technical implement in
the way of communication with in a company these comprise
barriers arising out of organisation structure, where
responsibility and authority are not properly assigned.
OTHERS:
These comprise barriers arising out of geographical distance,
lack of time from communication and lack of training.
To these may also added:
1. Personal Barriers
2. Semantic Barriers
3. Psychological Barriers
4. Physical Barriers
From the study of above cited organisation structure, I came to
know that it is professionalism and standardised was also up to
the mark for a small organisation, like EACL in the process of
delegation of authority upward and downward communication is
required because there is creation of a principal of subrogation,
creation of authority and responsibility relationship.
1. DOWNARD COMMUNICAION
As it is very clear from the chart that the head of concern
Managing Director or the Board of Directors. The policy
formulation, rules and regulations standing order organization
policy, policy regarding expansion and development.
Modernised renovation, promotion and transfer, wage and salary
administration etc. are formulated by Board of Directors, which
is later on communicated to the functional managers. After it is
circulated through circulars, notice by making policies and
office notification and other work, instructions, passing of
commands, controlling is communicated from top of bottom. It
is called as downward communication, which is prevailing in
the organization under study. However there is minimum
confusion and completion in the communications system
because of its lower number of employees and the simplicity of
the system, most of the instructions are passed away orally face
to face. Telephone is also used for this purpose. However in the
computerized accounting department is operating modern
techniques of communication.
2. UPWARD COMMUNICATION
It may be defined as a reporting system from bottom to top and
in the response of the process delegation of authority with the
delegation of duties, responsibilities, accountability and
authority. The process of getting the things done starts. After
the stipulated period and providing all the essential aids to the
employees, they are assured about their performance. So it is the
second aspect of delegation. The supervisor or foreman reports
the assistant manager about the progress made by the
employees, problems faced shortage of raw material, individual
performance report and the other related aspect of working
environment. The necessary steps are taken by the assistant
manager to improve the situation. So the function in the
organisation hierarchy can be accomplished with the help of
communication system. Grievance handling is also with the help
of upward communication in the organisation. There is best mix
of upward or downward communication.
3. SCALER COMMUNICATION
As from the organisation structure it is very clear that the
company is managed through the professionally qualified and
skilled managers. Scalar communication means the transmission
of ideas, emotions and sentiments between he managers
enjoying equal status. Conference, meetings, management
games are some of the examples which are used in EEAL. The
activities of the organization are interlined. So, they need
cooperation, personnel and finance departments are
interdependent. Any new change in the organization policy,
modification in the working, change in performance budget.
Change in organisation policy must be informed to the entire
department and their consent must be obtained. It is possibly
only when they sit together to discuss on various issues and all
this happens in EEAL.
4. WRITTEN & ORAL COMMUNICATION
In EEAL. There is best mix of oral as well as written
communication. By the top management mostly written
communication is used because in policy formulation, passing
on instructions, divisions of various departments, organizational
relationship among the different levels of managers, it is almost
written.
Matter should be written to create a documentary relation among
each other. While at the lower level oral communication is
used? There is a relation of superior and subordinates which is
almost completed by passing on the instruction applying and
receiving the communication from the employees. But in the
company 20% of the total communication at the lower level is
written and rest is oral. The written communication may include
letters, memos, and office notification, showcase notice and the
charge sheets. At the top level the examples of the written
communication are minutes, annual reports etc. the company is
printing its half yearly and newsletter every month.
5. REPORTING SYSTEM
Reporting may be defined as communicating the progress report
made by the lower level to the higher level. In this way
reporting is the feedback of the assigned objectives. Reporting
is an important aspect of the business communication. In the
organisation under study, reporting system is very popular and
effective performance of the employees is totally based on the
reporting system. Supervisor and foreman report to assistant
manager and assistant manager report to deputy manager. In
EEAL controlling and reporting are interdependent rewards and
incentive scheme. Promotion and transfer are rewards of special
increments assigned to alignment to duties, enrichment of job is
totally based on reporting system. It is prepared in a printed
format issued by the company in which the particulars are
furnished regarding each and every employee. Although
reporting system is a written type of communication but it is
playing most important role in maintaining law and order,
discipline, punctuality and efficiency of the company.
6. CONTROLLING
Controlling is the best but not least function of the management.
It controls and checks the information. Control may be defined
as controlling according to planning and taking corrective
actions against deviations. Planning, Organising and Directing
are the main functions and control is the feedback of all the
managerial, supervisory and clerical functions. After the
controlling authority receives the reporting, he looks out the
weakness and lagging behind and according to the policy of the
company he may take necessary actions. In the organisation
under study control is an effective tool of management.
Controlling is almost fact to face in the shape of pyramids and
guiding the same cases in which are very crucial in decision
taking and are in writing in the shape of memos, charge sheets.
But in the company under study harmonious relationship are
maintained and very rare chances of punishment are seen and
observe. So controlling is the function of management without
which we can't achieve our objectives plays an important role in
the unity, strength and integrity of the company. It is said that
without planning control is worthless and without control
planning is baseless. That is why they are termed as TWINS of
management.
7. SETTING OF M.B.O.
Before accomplishing and thing we must have our targets in
hand. Before knowing where we are and here we want to go is
not clear our efforts will be waste. MBO which means managing
by objectives is a part of planning which is very important in
getting things done. They are the guidelines and path showing
instrucitons for the persons who are involved in achieving the
organisational objectives of the company. The objectives lay
down by the top management i.e. GM, MD, and the functional
heads, later on they are published and circulated to all
departments so they can process their actions according to
planed and predetermined objectives. As already been old
reporting and controlling are the twins and the two sides of the
same coin are totally based on the M.B.O. is the base of any
industry and business organisation.
8. PRINTING ANNUAL REPORTS
An EEAL is an escorts company and is corporate under Indian
Act - 1956 as per the instruction laid down that each company
will prepare final accounts and balance sheets to show the real
purpose of the business. The company is preparing such types of
statements, which are called annual reports of the company.
Annual reports give a clear picture and a comparison from the
last year. Provisions are made regarding depreciation,
development research and development taxation, dividend
payment etc. The full names and address of the directors are
also made in the annual reports, which shows what is the
profitability, solvency and liquidity of the company. Although it
a written document of the company reports and records, it is
open to the members only because they are the interested
parties. It is a part of written communication, which gives over
all information about the company
DISCIPLINE AND DISCIPLINARY ACTIONDISCIPLINE AND DISCIPLINARY ACTION
The word discipline denotes that the members of a group should
reasonably conform to the rules and regulations (i.e., the code of
behaviour) which have been framed for it or by it so that every
one may benefit by them.
If the members of a group do not abide by the rules, the
organization it self may collapse.
'Disciplinary action' or 'to discipline' means that steps are taken
to correct disobedience and, if possible, it cause.
Act of Indiscipline or Misconduct
It is an act or a conduct which is prejudicial to the interests of
the employer, or which is likely to impair the reputation of the
employer, or create unrest among other employees; it is an act
of misconduct even when such activities are performed outside
the organisation, or before or after the employee's duty hours.
Causes of Indiscipline and misconduct
a). Non-placement of the right person on the right job.
b). Undesirable behaviour of senior official.
c). Faulty evaluations of persons and situations by executives
lead to favoritism.
d). Lack of upward communication.
e). Leadership which is weak.
f). Defective supervision and an absence of good supervisors.
g). Lack of properly drawn rules and regulations.
h). Worker's personal problems.
i). Intolerably bad working conditions.
j). Discrimination based on caste, color, creed, sex.
Procedure of Disciplinary Action
Following steps should be taken into consideration.
a) Accurate Statement of the Problem
The first step is to ascertain the problem by seeking answers to
the following questions:
- Does this case call for a disciplinary action?
- What, exactly, is the nature of the violation or offence?
- Under what conditions did it occur?
- Which individual or individuals were involved in it?
- When, or how often, did the violation occur?
The HR executive first, find out that a violation that has
occurred and that is entirely the fault, or at least partially the
fault, of one or more subordinates. The next step is to determine
and state the nature of the alleged violation of a rule, a
regulation, a policy; to determine whether a request or order has
been ignored or broken, and asses the seriousness of the specific
offence which has been committed.
b) Facts are collected bearing on the Case
Before the HR department in the case takes any action, it is
essential to gather all the facts about it. A through examination
of the case should be made within the stipulated time limit. The
facts gathered should be such as can be produced before a
higher authority, if and when needed.
c) Selection of tentative Penalties
The kind of penalty to be imposed for an offence should be
determined beforehand. Should it be a simple reprimand, a
financial penalty or should it be Domotion, temporary lay off or
outright discharges?
d) Choice of Penalty
If the decision has been taken to impose a penalty, the
punishment to be awarded should be such as would prevent a
recurrence of the offence. If the punishment is lighter than it
should be, it might encourage the violation of the same rule or
another; if it is greater than it should be, it may lead to a
grievance.
e) Application of the Penalty
The application of the penalty involves a positive and assured
attitude on the part of the management. "If the disciplinary
action is a simple reprimand, the executive should calmly and
quickly dispose of the matter. But when severe action is called
for, a forthright, serious and determined attitudes is highly
desirable."
f) Follow-up on Disciplinary Action
The ultimate purpose of a disciplinary action is to maintain
discipline, to ensure productivity, and avoid a repetition of the
offence. A disciplinary action should, is evaluated in terms of
its effectiveness after it has been taken. In other words, there
should be a more careful supervision of the persons against
whom a disciplinary action has been taken.
Penalties and punishments: -
Different penalties for the same offences when it is committed
once, or the second time, or the third time.
I Actions most Frequently leading to discharge after a first
offence:-
- Theft
- Possession of narcotics
- Willful damage to comp[any property
- Possession of firearms or the weapons
- Falsifying records of work
- Fighting
- Off- the -job criminal activities
- Unauthorised strikes
- Drunk at work timings.
Actions most frequently leading to discharge after a second
offence:
- Sleeping on the job
- Use of abusive or threatening language to a supervisor
- Gambling.
Actions taken to discharge after third offence:
- Horseplay
- Leaving work without permission
- Failure to use safety devices
- Smoking in unauthorised places
- Slow down in production
Actions taken to discharge after a fourth offence:-
- carelessness
- chronic absteneesim
- unexcused absence
- Unexcused or excessive lateness.
DUE PROCESS
a) Charge sheet is farmed and issued :
The first step in the procedure is to frame a written charge sheet.
Which is based upon a written complaint against the employee
in question. Which contains details of the offences with which
he is charged and the allegations of misconduct made against
him, and which contains details of the offences with which he is
charged and the allegations of misconduct made against him,
and indicating the time limit within which a reply to the charge
sheet should be submitted to the authorities. The contents and
implications of the charge sheet may be explained to him. If he
refuses to accept it, it should be sent to his residential address
under registered post. If the person refuses to take the delivery
then it should be published in the newspaper.
b) Recipient of explanation:-
The employee may submit explanation within the prescribed
period of the time, or he may ask for an extension of the time of
its submission.
c) Issues of the Notice of inquiry:
If the explainer received from the employee is found to be
unsatisfactory, a notice of enquiry mentioning the time date, has
to be given to him in which the name of the person of officer
who conduct the enquiry would also be mentioned. The
employee is requested to be present at the mentioned. The
employee is required to be present at the appointment time and
place. Together with his witnesses, if he has any.
d) The holding of the equity:-
On the appointment day and appointment place and the time the
enquiry officer in the presence of the employee holds the
inquiry. The contents opt the charge sheet and explanations of
the procedure to be following are the enquiry is communicated
to the worker. If the employee pleads in writing then the enquiry
against him is dropped.
e) The findings:-
Once the enquiry is over, the enquiry officer has to give
findings that should invariably contain the procedure, which was
followed, the parties statement. The officer should then record
his own findings to a particular conclusion. He should
specifically mention that charges have been proved and which
have not been proved
f) Decision
On receiving the report, the executive authorised to take a
decision thereon passes an order of punishment.
g) Communications of the order:-
A copy of the order is then handed over to the employee.
GRIEVANCES AND GRIEVANCESGRIEVANCES AND GRIEVANCES
HANDLINGHANDLING
Dissatisfaction is any state or feeling of discontent, weather it is
innate and expressed are explicitly expressed. A dissatisfaction
which is orally made known by one employee to as another is
known as a complaint .AQ complaint becomes a grievance when
this dissatisfaction, which is mostly related to work, is brought
to the notice of the management.
Causes or sources Grievances
(i) Concerning Wages
- Demand for individual adjustment; the worker feels that he is
underpaid;
- Complaints above incentives
- Mistakes in calculating the wages of a worker.
(ii) Concerning Supervision
- Complaints against discipline.
- Objection to having a particular foreman
- There are too many rules; regulations are not clearly posted.
(iii) Concerning Individual Advancement
- Complaint that the employee's record of continuous service
has been unfairly broken;
- Complaint that the claims of senior persons have been
ignored.
- Charges are made the disciplinary discharge of law-off has
been unfair.
(iv) General Working Conditions
- Complaints about toilet facilities being inadequate; about in
adequate.
- Complaints about working conditions.
(v) Collective Bargaining
- The company is attempting to undermine the trade union and
the workers who belong to that union.
- The company does not allow the supervisors to deal with, and
settle, the grievances, of the employees.
- The company disregards precedents and agreements already
arrived at with the workers and/or their trade union.
Grievance Procedure Steps in Unionised Organisations
Step 1: The aggrieved employee verbally explains his grievance
to his immediate supervisor or in a conference or a discussion
specifically arranged for the purpose. The employee seeks
satisfaction from his supervisor. The grievance can be settled if
the supervisor has been properly trained for the purpose, and if
he adheres strictly to a basic problem-solving method.
Step 2: The second step begins when the grievance is not settled
by the supervisor. In this case, it is sent to a higher level
manager with a note in which are mentioned the time, place and
nature of the action to which the employee objects. The higher
level manager is generally the chief business manager, a
superintendent or an Industrial Relations Office who goes, into
the grievance and gives his decision on the matter.
Step 3: This means that the grievance is to be submitted to the
Grievance Committee since the decisions of the supervisor and
of the which is composed of some fellow-employees, the shop
steward or a combination of union and management
representatives, considers the record and may suggest a possible
solution.
Step 4: If the decision or suggestion of the Grievance
Committee is not accepted by the grievant, he may approach the
personnel manager.
Step 5: The final step is taken when the grievance is referred to
an arbitrator who is acceptable to the employee as well as the
management. They may agree beforehand that the arbitrator's
award will be final and binding on both the parties.
EMPLOYEE MORALEEMPLOYEE MORALE
Whenever something is found to be wrong with the workers, it
is obvious that there must be some cause of this situation. It
may be that the policies or practices of the company are
defective, or that it executives are at fault, or that the views of
those whose morale is low do not agree with those of the
company or of its executives.
For improving worker's performance, managers should provide
training for employees; create specific performance goals for
workers to strive for; provide performance feed-back on a
regular and frequent basis; encourage neat, orderly work areas;
arrange and increase the number of operations performed by
each employee whenever possible; structure jobs so that workers
can at least occasionally move about the work area; and explore
ways to assign greater responsibility to each individual.
(i) Creation of Whole Jobs: United this procedure, complete
jobs are assigned to the workers. Jobs should be enlarged that is
the complexity of a job should be increased so that it may
appeal to their higher needs. On an assembly line, for example,
a worker may be allowed to perform more than one specialised
function.
(ii) Job Enrichment: This involves a greater use of the factors,
which are intended to motivate the worker rather than to ensure
his continuing satisfaction with the job he performs. The idea is
to reduce employee discontent by changing or improving a job
he performs. The idea is to reduce employee discontent by
changing or improving a job to ensure that he is better
motivated.
(iii) Building Responsibility into a Job: Employees should be
encouraged to take risk decision. This can be ensured by
delegating authority to them.
(iv) Modifying the Work Environment: This involves the use
of teams or work groups; developing the social contacts of the
employees; the use of music; regular rest break.
(v) Flexing Working Hours: That is, introducing flextime and
flexible working hours so that en employee may have enough
time to look after this children and his family as well as after his
personal affairs. In this manager, the rate of absenteeism can be
reduced.
(vi) Job Sharing or Twinning: Under this system, two workers
divide a full-time job between themselves, splitting not only the
hours of work but also the salary.
(vii) Rotation of Jobs: Job rogation help to reduce an
employee's boredom, which arises out of the monotonous nature
of his work. By the adoption of this procedure, jobs may also be
found for mentally retarded and physically handicapped persons.
Employee welfare facility
An Escorts Club is there in which various welfare programmes
like Diwali Eve, New Year eve and other parties is conducted.
In which all the employees gather. It is a kind of social meet.
A formal meeting is these between the company’s higher
employee and worker. In this meeting the problems of the
workers is dealt with workers general problem, household
problem etc. if any worker is involved in legal case (not crime)
is duly helped by the company legal persons, for consultation.
WAGES AND SALARYWAGES AND SALARY
The Wages Determination Process
The process of job analysis
Results in job description, which leads to job specification. A
job analysis describes the duties responsibilities working
condition and interrelationship between the job as it is and the
other jobs with which it is associate it attempts to record and
anlayse details concerning the training, skills required, efforts,
Job Analysis
Job description & specification
Performance standards
Job evaluation
Wage surveys & analysis of relevant organisational problems
Wage Legislation
Wage structure
Rules of administration
Differential employee appraisal
Wage payments
qualifications, abilities, experience and responsibilities expected
of an employee. After this the job is rated in order to determine
its value related to all the other jobs in the organisation, which
are subject to evaluation. The next step is that of providing the
job with a price.
Wages Survey
In this area making wage or salary surveys in the area concerned
is taken up to find out the relative wages given by the other
organisations.
Relevant Organisational problem
Before setting the wage company consider the various problems
for example whether there exists well established and well
accepted relationships among certain jobs which can upset job
evaluation, whether the organisation would recruit new
employees after revised wage structure; are the prevailing rates
in industry or community inconsistent with the result of job
evaluation. What will be the result of paying lower or higher
compensation; and what should be the relationship between the
wage structure and the fringe benefit structure and things related
to it.
Preparation of wage structure
A wage structure is determined by the company in which
various decision is taken up like (a) whether the organisation
whishes, or is able, to pay amounts above, below, or equal tot he
averages in the community or industry (b) whether wage ranges
should provide for merit increases or whether there should be
single rates (c) which jobs are to be placed in each of the pay
grades; (d) the number and width of the pay grades and the
extent of overlap (e) the actual money value to be as signed to
various pay grades (f) differentials between pay plans; and
(g) what to do with salaries that are out of line once these
decisions have been made is deeply considered.
FACTORS INFLUENCING WAGES AND SALARY
STRUCTURE
WAGE&
SALARY CRITERIA
Livi
ng w
age
(8)
Ability to pay (1)
Going rate (2)
Productivity (3)
Cos
t of l
ivin
g (7
)
Supp
ly &
de
man
d fa
ctor
(6
)
Job
requ
ire-
men
t (5
)
Union
bargaining pow
er (4)
THE COMPANY’S WAGE THEORYTHE COMPANY’S WAGE THEORY
The wage theory that the company follows to ascertain the
wages of the employee is through Marginal Productivity Theory.
According to this theory, wages are based upon an
entrepreneur’s estimate of the value that will probably be
produced by the last or marginal worker. It assumes that wages
depend upon the demand for and supply of labour. Workers are
paid what they are economically worth. The result is that the
employer has a larger share in profit as has not to pay to the
non-marginal workers.
Executive compensation Plan
For the higher management salaries are influenced by the size of
a company, by the specific industry, and in part by the
contribution of the incumbent tot he process of decision making.
The bigger the firm, the greater is the compensation paid to the
executives. The salary is determined by mutual agreement
between the individual and the employer. The sales effected the
cost of production, reduction in expenses and the profits made
are also taken into account.
Executives are compensated for the various expenses incurred
by them, for taxation takes away a major portion of their salary.
Such payments are in the form of
(a) Medical care
(b) Counsel and accountants to assist in legal, tax and
financial problems.
(c) Facilities for entertaining customers and for dining out;
(d) Company recreational area
(e) Free well-furnished accommodation, conveyance and
servants.
JOB EVALUATIONJOB EVALUATION
Job evaluation as a process of analysing and describing
positions, grouping them and determining their relative value by
comparing the duties of different positions in terms of their
different responsibilities and other requirements.
It is the quantitative measurement of relative job worth for the
purpose of establishing consistent between job requirements, the
objective being the setting of pay for management purposes.
Procedure for job evaluation
(i) Analyse and prepare Job Description: This requires the
preparation of a job description and also an analysis of job
requirements for successful performance.
(ii) Select and Prepare a Job Evaluation Plan: This means
that a job must be broken down into its component parts, i.e., it
should involve the selection of factors, elements needed for the
performance of all jobs for which money is paid, determining
their value and preparing written instructions for evaluation.
(iii) Classify Jobs: This requires grouping or arranging jobs in a
correct sequence in terms of value to the firm, and relating them
to the money terms in order to ascertain their relative value.
(iv) Install the Programme: This involves explaining it to
employees and putting it into operation.
(v) Maintain the Programme: Job cannot continue without
updating new jobs and job changes in obedience to changing
conditions and situations.
Job Evaluation Methods adopted by the company
The Ranking System
Under this system, all jobs are arranged or ranked in the order
of their importance from the simplest to the hardest, or in the
reverse order.
Step 1: Preparation of job description, when the ranking of jobs
is done by different individuals and there is a disagreement
among them.
Step 2: Selection of Raters, jobs may be usually ranked by
department or in "Cluster" (i.e., factory workers, clerical
workers, menials, etc). This eliminates need for directly
comparing factory jobs and clerical jobs. Most organisations use
a committee of raters.
Step 3: Selection of rates and key jobs. Usually, a series of key
jobs or benchmark jobs (10 to 20 jobs, which include all major
departments and functions) are first rated. Then the other jobs
are roughly compared with these key jobs to establish a rough
rating.
Step 4: Ranking of all jobs. Each job is then compared in detail
with other similar jobs to establish its exact rank in the scale.
For this, each rater may be given a set of 'index card', each of
which contains a brief description of a job. These jobs are then
ranked from 'lowest to highest' or from 'highest and so forth
until all the cards have been ranked.
Step 5: Preparation of job classification from the rating: The
total ranking is divided into an appropriate number of groups of
classifications, usually 8 to 12. All the jobs within a single
group or classification receive the same wage or range or rates.
In this ranking system job evaluation usually measures each job
in comparison with other jobs in terms of the relative
importance of the following five factors.
i Supervision and leadership of subordinates.
ii Co-operation with associates outside the line of authority.
iii Probability and consequences of errors (in terms of waste,
damage to equipment, delays, complaints, confusion,
spoilage of product, discrepancies, etc).
iv Minimum experience requirement and
v Minimum education required
The Point System
It requires identifying a number of compensable factors (i.e.,
various characteristics of jobs) and then determining degree to
which each of these factors is present in the job. A different
number of points is usually assigned for each degree of each
factor. Once the degree to each factor is added and an overall
point value is obtained. The point system is based on the
assumption that it possible to assign points to respective factors,
which are essential, for evaluating an individual's job. The sum
of these points gives us an index of the relative significance of
the jobs that are rated.
Step1: The jobs have to be determined first, which are to be
evaluated. The jobs which require (I) similar activities, (ii) the
same worker characteristics or traits and work on the same kind
of materials are placed in the same cluster or family.
Step 2: A pre-determined number of factors arbitrarily selected
by raters. The number of factors used varies a great deal from
company to company, ranging from as few as 3 to as many as
50, although most companies use less than 15.
The common factors are: Education and training; experience;
physical skills and efforts; planning for the supervisor of others;
external contacts, intern contacts; confidential information and
working conditions.
Step 3: The next step is to break down each factor into degree
or levels, and to assign a point value to each level or degree.
Experience is subdivided into 5 degrees. The first degree, three
months or less may be assigned 5 points. The second degree 3 to
6 months given 10 points, the third degree, 6 to 12 months,
assigned 15 points; the fourth degree 1 to 3 years, assigned 20
points and the fifth degree is over 23 years and 1 to 3 years,
assigned 20 points and fifth degree is over 3 years, and is
assigned 25 points.
Step 4: Determination of relative values or weights.
Step 5: The next step is to assign money values to points. For
this purpose, points are added to give the total value of a job. Its
value is then translated into terms of money with a pre-
determined formula.
PERFORMANCE APPRAISALPERFORMANCE APPRAISAL
Performance appraisal is a process of evaluating an employee's
performance of a job in terms off its requirement.
The evaluation process: -
Method of performance appraisal
Grading method: -
This method is used for the lower management level, like
supervisors and the workers of the plant.
Under this method the personnel manager considers certain
features and marks them accordingly to a scale. Certain
categories of worth are first establishment and carefully defined.
The selected features may be analytical ability, co-operative's,
dependability, self-expression, job knowledge, judgement,
leadership, and organisation ability, etc. These may be A-
outstanding, B-very good, C-good average, D-fair, E-poor, -B-
very poor or hopeless.
The actual performance of an employee is then compared with
these grade definitions, and he is allotted the grade which best
describes his performance.
Management by objectives (M.B.O) : -
This process is used for the upper management level people like
the executives of the company. This is potentially a powerful
philosophy of management and an effective way for
operationlising the evaluation process.
The superior and the subordinate managers of an organisation
jointly identify its common goals, define each individuals major
areas of responsibility terms and result expected of him and use
these measures as guides for operating the units and assessing
the contribution of each of its members.
MBO process: -
1- Set organisation goals:
Under this the organisation wide strategy and goals is
established. This goal is then expressed clearly and concisely
and can be measured accurately. This goal is periodically
revised as and when there is the change in the business
environment. This goals is kept very challenging, they are high
enough to give a motivation to the executives toward the
organisation. These goals are not set too high otherwise it will
lead to dissatisfaction to the employee.
2- Joint goal setting :-
In this step the short-term goals is established for the managers
and the subordinate. It is discussed in between them. There is
discussion on the individual goals set between the manager and
the subordinate. These goals are kept flexible enough to
accommodate new ideas and they should stress individual
responsibility.
3- Performance reviews:-
Frequently performance review meetings between the managers
and the subordinate.
4- check posts is setted
The major checkpoints to measure progress. This is done to keep
the manager's alert to the objectives, which is setted. This is
done through the well-established team of the HR department.
5- Feedback: -
The employee who receive frequent feedback concerning their
performance are more highly motivated than those who do not
feedback that is specific, relevant, and timely helps satisfy the
need most people fell about knowing where they stand.
Under the MBO program, an employee and his supervisor meet
and other define, establish, and set certain goals or objectives
which the employee would attempt to achieve within the period
of prescribes time.
The various benefits of the MBO programme are: -
- it helps in increasing employee motivation
- Managers are more likely to compete with themselves than
with other manager.
- It reduces role conflict and ambiguity
- Identifies problems better and early
EXECUTIVE DEVELOPMENT ANDEXECUTIVE DEVELOPMENT AND
EMPLOYEES TRAININGEMPLOYEES TRAINING
The development of the executives is done in the following
manner -
Step 1: an area of lacking is identified by the manager executive
itself. In other words he himself identifies the required area of
the training and development
Step 2: then the requisition on the demand of that area of
training is made and sent to the head of the department of the
related officer is.
Step 3: then he recognises the area of requirement by the
manager executive. He sanctions the requirement and sends to
the HR department.
Step 4: now the HR department considers the requirement of the
related department and puts it into the consideration.
Now there are various government and non-government
organisations, which conduct the training part of the executives.
Like- CII, ASSOCCHAM, other organisatios that keep due
contact with the various industries time to time.
Step 5: now the HR department negotiates with them and
decides about the training various aspects like duration, content
of the course etc.
Step 6: when all aspects of the training is set. The company gets
the manager trained from that institution.
Step 7: after the person gets his training over the HR
department conducts the performance test for that manager by
the head of the department of the related department, to check
weather the manager has gained something from the training or
not.
EMPLOYEES TRAINING
The process is conducted in the same manner as the executive
training is conducted, only difference in the executive training
and the employee training is that the requirement of the
instructor is adjusted within the organisation to a large extent. If
the training needs a qualified person then it hired from outside.
PROMOTIONS, DEMOTIONS ANDPROMOTIONS, DEMOTIONS AND
ABSENTEEISMABSENTEEISM
Promotion is the term which a change and call for the grater
responsibilities, and usually involves higher pay and better term
and conditions of service and, therefore, a higher status or rank.
Promotion in the company is given on the basis of the
SENIORITY versus MARIT basis. In this the seniority refers to
the length of the service an individual had given to the
particular organisation. Occupational seniority may be within a
department, within a division or in the entire plant.
Promotion is also given on the basis of the performance
appraisal of the particular person, if there are many people on
the post. His record and the various achievements he has
achieved for the organisation.
Demotion
It is the assignment of an individual to a job of lower rank and
pay usually involving lower level of difficulty and
responsibility.
Demotion is basically a punishment given by the company to an
employee for his some misconduct he has done against the
organisation. It is also given because he didn’t follow the code
of conduct of the organisation.
Absenteeism: -
It is the practice or habit of being absentee and absentee is one
habitually stay away.
In this the company keep a close watch in this regard of the
employee. In this context the HR department keeps watch
through by a time machine. The record is kept in the
organisation monthly wise. This absenteeism or getting late is
recorded, and a monthly report is prepared. A formal letter is
send to the employee by the HR department. If the employee
continues with the same attitude then he is called by the HR
manager and is explained by him. Even if he maintains the same
attitude then he is penalised for the.
RECRUITMENT AND SELECTION PROCESSRECRUITMENT AND SELECTION PROCESS
Recruitment is the discovering of potential applicants for actual
or anticipated organisation vacancies.
Recruitment system: -
Personnel
Human resource planning
Recruiting needed
personnel
Selecting qualified personnel
Placing new employees
on Job
Developing sources of potential
employees
Search for potential
employees
Evaluating recruiting
effectiveness
Internal sources
External sources
Selection process
Requirement Identified
Permission from the Plant Head
Personnel Department
Source is decided
External
Application is called
Internal
Secondary
Analysis of Application
Screening of Application
Concerned Department Decides the candidate to be called
Interview Panel (Deptt. Head, HR Head & Any Tech. Per.)
Interview Conducted
Final Selection
If the selected candidate agrees than letter of intent is given
Final appointment of the candidate
QUALITY RECORD MAINTAINED IN THE
DEPARTMENT
S. No. Name of Records
1. Corporate of training needs and requirement
2. Training need identification
3. Training plan
4. Requisition form
5. Rating format
6. Appointment letter
7. LTA form
8. Leave application form
9. Extra voluntary worksheet
10. Late entry form
11. Statement of returns to government agencies
12. Return to government agencies
13. Annual review forms
This quality registers is maintained for the reason to maintain the
quality in the human resource.
LIMITATIONSLIMITATIONS
- I could not get the exact HR policy from the company
(confidential paper). The information collected on HR from the
company was not in set format. To put those information into a
set format various books has been consultant.
-Sales figure projections and the data depend upon the
conditions prevailing today and last year. It may change with
the effect of various market forces, which are not consistent.
-The report does not suffer with personnel biases. But despite of
high amount of procurement of data and information their can
be incorrect deduction and recommendations.
-A market research on a large scale has not been possible due to
limitations of resources and constraint of time. A true picture
could have emerged indicating future trends in this sector.
-The profile of Mr. Nikhil Nanda director of this company is not
mentioned.
-Industrial marketing is very different from other marketing
concepts. As far as possible is handled carefully, but some of
the other points may not be covered because there are 101
factors which effects industrial demands.
-Recommendation and conclusion is being given on the basis of
author subject knowledge. It may differ from person to person.
-Company takes up less of promotions in OE marketing.
-It was difficult to make the project simultaneously while I was
on summer training. So please bear with the information
collected.
CONCLUSIONCONCLUSION
Escort Employees Ancillaries Ltd. (EEAL) was recently in
August last year was renamed as Escort Auto Component Ltd.
(EACL).
EACL is one of those companies, which are operating from lost
3decades. Earlier EACL was raised by Escort Ltd. (EL) for the
season that EL had its business in two-wheelers industry also.
To reduce the cost of the bikes and to cater larger market, this
major auto component “Carburettor” was manufactured
indigenously. Which is manufacture by Escort Auto Component.
Escort Auto Component Ltd. had a major Customer Yamaha
Motors Escort Ltd. (which now totally taken/over by Yamaha).
Today EACL had lost its customer, and with the due fact the
company is facing losses.
Today Company has realised the competition in the market.
They had to market their products to other Auto Manufacturer
other their Escorts Yamaha. apart from being a big supplier to
two –Wheeler Company has ventured into Direct Marketing for
Replacement Market (Replacement Marketing). With this
concept of marketing EACL has made on attempt to cell
carburettors for those vehicle, which have higher population.
Higher the number of population of vehicles higher the much be
will be for were and tear so need for Carburettor replacement”.
Company’s higher official say/s
EACL has also recorded a highest sales figure since its stepping
into this field, for 80488 (2000-2001) Carburettors against
65959 and 5671.6 for 99-2000 and 98-99 respectively. In
replacement market company has a cutthroat competition with
other brands like Spacco and Ukal.
In other words company is showing a good perforamnce in the
field of Replacement Marketing.
EACL which is manufacturing industrial product Carburettors
which is for two-wheeler industry. Company had a ever growing
sales figure for 2000-01 478234 carburettors were sold and for
1999-2000 444369 carburettors was sold.
Which shows that they have been aggressively taking up this
field. EACL has always believed in customer satisfaction.
Company has grabed strong customers like Hero Honda,
Enfield, TVS Suzuki and Bajaj in OE Marketing. EACL
manufacturer product upto their satisfaction levels with most
advanced quality to give best performance. Bajaj Auto which is
one of the most satisfied one the oldest customer of EACL.
The performance of a two –wheeler depends on its corburettor,
Bajaj Scooters is the leader in market we can say that, indirectly
the carburettor manufactured by EACL which is fitted in Bajaj
Scooters is also showing good performance.
As far as the Human resource is concerned EACL follows very
intensive and exaustive system for the recruitment’s and
selection process. In both the cases workers and executives
managers. EACL has adopted a good communication channel,
employees of the organisation are well sound persons, with the
effect of that they have a healthy communication between the
executives subordinates, supervisors, managers and workers. All
employees understand each other very well. The other aspect of
Descipline within the organisation is not too harsh and also not
too lose. Descipline is maintained is such a manner that it does
not create any uneasyness among the employees. But at a certain
points discipline has to be had like Absenteeism. Misconduct an
reasoned strikes etc. company has a good grievance handling
procedure. The workers of the company are satisfied with it.
They by when ever we have a problem we consult one
supervisors and if the problem is big our personnel chief helps
us out according. At the same time company employees one
satisfied with the procedure performance appraisal and the
wages and salary port dealt by the company.
The only fact, which I was not satisfied, was the area of
executive and employee training and development part.
Company doesn’t take up timely training and development part.
They say we only take up when there is some requisition for the
related department. Rather it should be a ongoing process.
The other part my dissatisfaction was the organisation
hierarchy. Company has plan head who is the director of the
company but recently they have promoted one more person to
the level of plan head. They say ever though there are two at the
same level but plant head is only one. Because of his tenure was
due he was promoted. If a person gets promotion ad do not get
authorities he may feel dissatisfied.
RECOMMENDATIONSRECOMMENDATIONS
Market Survey
On the basis of market survey, some factual data nad my
experience in EEAL, recommendation to improve market share
of "MIKCARB" carburettor in the replacement is following,
1. As we have seen that customer awareness about carburettor is
very low generally go to local mechanical where he get
local/duplicate carburettor and deprives of more efficient
original carburettor, so EEAL'S marketing division should
take initiative through it dealer to tell customer about
important of original "MIKCARB". So that at the time of
replacement he will come to dealer to get original
carburettor.
2. It is important to note that if EEAL capture the good O.E.
(original equipment) market then definitely is replacement
market will increase. So company should to increase its O.E.
market.
3. EEAL should have more cordial relations with its dealer and
give them incentives and discount i.e. "MIKCARB"
carburettor.
4. R&D department continuously tries to maintain
"MIKCARB." Carburettor more efficient than its competitor
"SPACCO".
5. Position of labour union in ESCORTS is very strong and it
is generally seen that strike by labour union badly affect the
supply of carburettor. So there should be a good relation
between management and union had try to avoid such
condition much as possible.
Recommendations for CommunicationRecommendations for Communication
1. Its merits and demerits judge the success or failure of the
communication system in any business enterprise. Everything
is having its positive and negative aspects. Nothing is perfect
in this world.
2. The written and oral communication having its own
advantages and disadvantages. In some companies written
communication may be successful while in other companies
it may have less impact. It also depends upon the history of
the company.
3. While preparing this project report I conducted a survey of
employees of EEAL and came to know the healthy and weak
points regarding the company's communication system.
4. The second suggestions propounded by me are the existence
of formal as well as informal communication. In any business
enterprise if there is a delegation of authority there is always
formal communication but the development of group dynamic
in any organisation gave a birth to informal communication
things can be got done more easily with the help of informal
communication. It is totally based on mutual understanding,
social relation's friendship. Formal as well as informal
communication both important in achieving the
organisational goals. In the company understudy their
informal type of communication is followed. So my
suggestion is that the formal as well as informal
communication should be followed in the company. The
untrue part of communication is called rumour, which should
be removed and eliminated.
5. The third but the most important thing that I observed in the
company is not having its proper records and reporting. Most
of the reports are written in a haphazard manner without
taking into consideration the other aspect of the report.
Sometimes if it is not buy only conveyed to immediate boss.
But reporting is an integral part of M.I.S., which is not
proper. I would like to suggest the management and the
employees encode proper, accurate and timely reporting.
6. In making communication a successful instrument in the
hands of management contentious interaction among various
departments. For this purpose the meetings sand conferences
are more important but I observed from my study that there
are minimum meetings and conferences. Management is the
intermingled activity and it is completed only with the
coordination and cooperation of all the departments. So it is
my suggestion that the frequency of conferences and
meetings must be narrowed down.
7. I observed that some of the workers are under middle and
they cannot follow the meanings of policies and procedures.
So it is the duty of the management that they should impart
them with proper training and development programs, If
properly and timely trained, they can discharge their duties
effectively and efficiently.
APPENDICESAPPENDICES
sample-1
1. Name and address of authorised dealer/workshop
Arihant Motors
2. Model's you deal with, which 'MIKCARB' is fitted.
K.B. 100cc Bajaj M80
3. What are the problems concerned with 'MILKCARB'.
Over racing, average problem over flow
4. Rate of replacement of Carburettor. 9-10 years
5. How many customer are aware about 'MIKCARB'
5%
6. Models in which other Carburettor as well as 'MILKCARB' is originally fitted.
50% of the M80 fitted carburettor of Spacco originally while 50% of the M80 vehicles is fitted with Mikcarb.
7. Which one is better Mikcarb is better then Spacco’s Carburettor
8. Average life of 'MIKCARB' Carburettor.
10 years
9. At the time of replacement
a) How many customers come for original Carburettor.
20% only other than go for local/ duplicate carburettors. Some don’t replace.
b) How many go to local workshop where they get duplicate Carburettor.
30%
Sample - 2
1. Name and address of authorised dealer/workshop
GREEN AUTOMOBILE, FARIDABAD
2. Model's you deal with, which 'MIKCARB' is fitted.
Yamaha RX-100, Rajdoot 175CC
3. What are the problems concerned with 'MILKCARB'.
Overflow
4. Rate of replacement of Carburettor. 7-8 per year
5. How many customer are aware about 'MIKCARB'
10 percent
6. Models in which other Carburettor as well as 'MILKCARB' is originally fitted.
No
7. Which one is better Both are same
8. Average life of 'MIKCARB' Carburettor.
10-12 year
9. At the time of replacement
a) How many customers come for original Carburettor.
12-30 year
b) How many go to local workshop where they get duplicate Carburettor.
40-45 percent
SAMPLE - 3
1 Name and address of authorised dealer/workshop
PRATAP AUTO PARTS, GURGAON.
2. Model's you deal with, which 'MIKCARB' is fitted.
HERO PUCH, HERO WINNER
3. What are the problems concerned with 'MILKCARB'.
Average
4. Rate of replacement of Carburettor. 8-10 per year
5. How many customer are aware about 'MIKCARB'
5-6 percent
6. Models in which other Carburettor as well as 'MILKCARB' is originally fitted.
Hero puch
7. Which one is better Both are same
8. Average life of 'MIKCARB' Carburettor.
8-10 year
9. At the time of replacement
a) How many customers come for original Carburettor.
20-25 percent
b) How many go to local workshop where they get duplicate Carburettor.
30-40 percent
Sample - 4
1. Name and address of authorised dealer/workshop
ALIM AUTO WORKS, DELHI
2. Model's you deal with, which 'MIKCARB' is fitted.
Bullet, Rajdoot, Yamaha, Explorer, Hero puch, Hero winner
3. What are the problems concerned with 'MILKCARB'.
Access of air, Average
4. Rate of replacement of Carburettor. 10-15 per year
5. How many customer are aware about 'MIKCARB'
4-5 percent
6. Models in which other Carburettor as well as 'MILKCARB' is originally fitted.
Hero puch and Hero winner
7. Which one is better MIKCARB
8. Average life of 'MIKCARB' Carburettor.
8-10 year
9. At the time of replacement
a) How many customers come for original Carburettor.
20-30 year
b) How many go to local workshop where they get duplicate Carburettor.
30-35 percent
Sample - 5
1. Name and address of authorised dealer/workshop
SHARMA AUTO WORKS, DELHI
2. Model's you deal with, which 'MIKCARB' is fitted.
Gizmo, Hero puch
3. What are the problems concerned with 'MILKCARB'.
Access of air
4. Rate of replacement of Carburettor. 8-10 year
5. How many customer are aware about 'MIKCARB'
2-3 percent
6. Models in which other Carburettor as well as 'MILKCARB' is originally fitted.
Hero puch
7. Which one is better Both are same
8. Average life of 'MIKCARB' Carburettor.
10 year
9. At the time of replacement
a) How many customer come for original Carburettor.
20-30 year
b) How many go to local workshop where they get duplicate Carburettor.
40-45 percent
INTERVIEW TAKEN FOR COMMUNICATION
The survey of any business enterprise is totally based upon the
cooperation and assistance given by the managers. Managers are
the persons who are responsible for various jobs. The
organisation can't speaks itself, it speaks through its employees,
the image, reputation and goodwill of the organization is
expected by its employees or by the persons who came into
contact of the company to make my project more reliable and
real. I also made certain discussions with the various managers
heading their departments. First of all I asked questions to work
manager named as Mukesh Gupta. I asked his attitude and
observation regarding the functioning of organisation and the
role-played by the communication system in its success. He
showed his full enthusiasm and optimistic attitude about the
success of the company. He asserted that the communication
plays an important role in getting the things done o achieves the
organisational goals. However there are certain problems but
they are removed and solved. Reporting and controlling are the
most important functions of the company working in the healthy
environment. In his opinion oral communications ahs the most
significance and proved as a blessing for the organization. From
his statement I can observe that his views about the
communication is very optimistic. However the pointed out
certain problems in the implementation of orders to get the
organisational goals. But they can be removed with the help of
mutual understanding and personal interaction.
Then I met Mr. A. Chaudhary, the finance manager of the
ESCORTS EMPLOYEES ANCILLIARY LIMITED,
FARIDABAD. He is a charted accountant and has a wide
knowledge of finance and accounts. Because he is involved in
managerial functions so he can be termed as a basic manager in
accounting system. A number of tasks and responsibilities are
discharged by the finance manager e.g. journalising, posting,
preparing ledgers, trial balance, trading profit & loss account
and balance sheets of a particular year. But his function does not
stop here, he has to cover and pass along distance preparing of
final accounts is not only the history of the company, as it
doesn't give future course of action. He has an interpret the
balance sheet and come out with certain results. Balance sheet,
which is most important part of the annual report, is prepared
and checked by the finance manager. I asked certain questions
from the finance manager. I asked his opinion regarding benefits
and objectives of the communication. He gave me an excellent
response that my financial policies annual reports highlight
financial circulars are itself the examples of communication.
These are written type of communication and have an
everlasting effect on the company and the people who came in
contact of the company. When I asked about this job satisfaction
can be replied that everybody has hi limits and expectations. As
regard myself I am satisfied with the job and monetary benefits.
Sometime when one wants to join a big organization repute but
ego and self-esteem comes in the way. In this company I am the
head of the finance department and formulating the financial
policies and procedures independently. I have to report GM but
the responsibilities on my shoulders are competency and
accuracy resembles and presentation of financial statement is
shortly the success of my communication system, of course most
of its parts is written one. I am hopeful for the prosperity of the
company. With best mix integrity of the company sales
department is an important department to deal with my project
of communication. It is very clear the communication is more
important for sale department as compare to any other
department. I met sales managers and enquired about the sales
policies of the company. He told me that our company is having
a narrow span of sales organization, as its area of operation is
only north India. However we are having an excellent team and
qualified persons for jobs. Any marketing policies and rules and
regulations, price policy, distribution system, sales promotion
program, dealer contest programs many other policies of the
sales department are transmitted through communication
system. In my departments most of the communication is written
with a best mix of meetings, conferences and repot writing.
Sales force is assigned area wise target. They have to specify
after the progress. He has to repot his immediate boss which
may in turn communicate to one so deciding the target,
receiving the information, performance appraisal and controlling
is only possible with the help of give and take of ideas, which is
of course a communication system. He emphasized that the
principle communication plays an integral role in functioning of
the organization as the role of blood circulation in the human
body.
Being a student of personal management I am not able to
discharge my responsibilities well honesty and sincerely if I
don't get the ideas of a personal manager in EEAL. Personnel
department itself indicates the significance of communication
system. The meaning on written and flexible personnel policies.
His response regarding communication is very much
encouraging and enthusiastic. Being a man of man management
he was aware of the concept of communication its significance
and process. I asked him about how do you formulate the
personnel policies? He answered "personnel policies are
important guidelines provided they are framed and formulated
taking into consideration the various factors of the company. I
do not simply follow the formal policies, which are followed by
the organizational structure. First of all I see the history of the
company, the success of various policies to the past, the culture
of the company, the attitude of the top management and
illiteracy of the employees. Being a small company we are
having simple and common personnel policies which are almost
written. We are having a training development center EDP
(electronic data processing), EDP and certain other development
programs. Employees learn more from their experience and are
trained by their superiors, follow men and bosses, which is not
possible without give and take of ideas. Regarding recruitment
and selection we are not having a definite policy. However we
are following certain guidelines issued by the general managers
time to time. In short I may add that there is hardly any field in
personnel management which is out of its use i.e.
communication.
BIBLIOGRAPHYBIBLIOGRAPHY
Magazines
Business world
Fortune
Escort Company Journals
Newspapers
Economic Times
Libraries
CII
Websites
www. Indiainfoline.com
www.escortsgroup.com
Books
Personnel Management – C.B. Mamoria
Personal management – Munappa
Personal Management and Human Resource Management –
Robins.
