Rahul Report 1

8/13/2019 Rahul Report 1

1/42

A

PROJECT REPORT

ON

PURCHASE & PROCUREMENT

Project Report Submitted

To

ASHOK LEYLAND, ALWAR (HINDUJA GROUP)

For the fulfillment of summer training

Submitted by: Under the

Supervision of:

RAHUL UBANA Mr. VINEE!U"A

M.B.A#L.S.$.M% "UR$HASE

U.".E.S& 'EHRA'UN

SUMMER PROJECT REPORT- RAHUL UBANA MBA- 2011 Page 1


2/42

EXECUTIVE SUMMARY

My idea with this report is to make everything as simple as possible and somewhere I

had not deal with all the detailed parameters .The report is completed with the best of

all the knowledge gathered during this summer internship period

The report in general brief about the ASHO !"#!A$%& as a company which was

important to know.

'eing one the leading manufacturing company& different philosophies were practiced

which are briefed here.

In addition what different products are being manufactured and no of plant in India.

As far as pro(ect is concerned& procurement department personnel shared their views

and skills to know how ASHO !"#!A$% is doing material planning. )egarding

supply chain they want me to visit their subsidiary in person and to know what they

supply.

At last& there were some findings and suggestions.

I hope in future many discussions will be easier from this and I am really grateful to

everybody who had helped me to understand the whole production and logistics.



3/42

CONTENTS

S.$O TO*I+ *A," $O.

- +")TII+AT"

/ A+$O0!"%,"M"$T

"1"+2TI3" S2MMA)#

4 I$T)O%2+TIO$

A'ST)A+T

O'5"+TI3"S

6 M"THO%O!O,#

S+O*" O ST2%#

7 +OM*A$# *)OI!"

8 O)A,A$ISATIO$ ST)2+T2)"

9 3ISSIO$

: MISSIO$

,"M'A

,"M'A AI;A$

,"M'A MISSIO$

< 3"$%O) O**O)T2$ITI"S

-= >2A!II+ATIO$ A$A!#SIS

-- %"*A)TM"$T 2$+TIO$



4/42

*")SO$$A! %"*TT

*2)+HAS" %"*TT

-/ MAT")IA! *!A$$I$,

-4 *)" %"!I3")# I$S*"+TIO$

-6 +2STOM") )"T"$TIO$

-7 0A#S TO )"TAI$ +2STOM")

-8 ""%'A+ )OM +2STOM")

-9 *)O'!"M SO!3I$,

-: MO%2!"

-< ,)O0TH MI!"STO$"

/= *)O%2+T *)OI!"

*ASS"$,")

,OO%S

+A),O

/- A$+I!!A)# 2$ITS(JIT)

*)A'HA

SAS A2TO+AM

S2)I$

// !"A% TIM" S+H"%2!"

/4 S0OT A$A!#SIS

/6 I$%I$,S

/7 S2,,"STIO$S

/8 +O$+!2SIO$



5/42

I N TRODUCTION

Ashok !eyland is a well known automobile manufacturing company in India.

Ashok !e yl an d believes that its historical success and future prospects are

directly related to combination of strengths.

This pro(ect is titled as a study on *urchase department in Ashok !eyland and

tries to find out the different aspects of manufacturing process in the

company. The pro(ect was held at Alwar ?)a(.@& from - May to 4= 5une /==


6/42


7/42

AB S TRACT

The report provides a consolidated preview of the *urchase activities of

Ashok !eyland& A l w a r 2nit .The referred unit is a core limb of Ashok!eyland& the nations pioneering automobile manufacturer. The core departments&

their primary functions are described in the report. Other special regulatory

functions like evaluation methods& employee benefit schemes have also been

covered.

The have aided the company in carving an eBcellent niche for itself in the

national and the international uniCue features and policies of the company& which

make it a leader without contention and arena& have also been referred.

OBJECTIVES O F THE STUDY

The ob(ectives of the study areD

To familiariEe with business organiEation.

,etting practical eBperience regarding the organiEational

function. To learn about the policies and functions of the

organiEation.

To understand the culture in the organiEation and its effect on

employees. To get industrial eBposure and eBperience.

To understand the production and marketing methods.



8/42

METHOD O LOGY

This study was undertaken by undergoing a training program at Ashok !eyland

for a b ou t a f o rt ni g ht . The i n fo r ma t io n w as c o ll e ct e d b y

in te ract ing and interviewing with the concerned personnel of various

functional departments.

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

secondary data. *rimary data is collected through direct observation and live

discussion wit h th e ma nag ers and t he sta ff m ember s. Secondary da ta

is collected through Annual )eports& 'usiness 5ournals& and "Bisting )ecordsand also from the website of the company.

SC O PE O F T H E STUDY

The study is mainly based on the details collected from *urchase department.

It provides a better understanding at functional level of *urchase

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

departments i.e. *urchase& Materials& and *roduction. "ach and every activity

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



9/42

COM P ANY P ROFILE

Ashok !eyland has been a ma(or presence in Indias commercial vehicle industry

since -


10/42

haulage vehicles& from numerous special application vehicles to diesel engines for

Industrial& marine and genset applications& Ashok !eyland offers a wide range of

products.

Ashok !eyland has siB manufacturing plants F

"nnore *lant& +hennai.

Hosur *lants 2nit I& 2nit II and 2nit II A.

Alwa , R a!a"#$a % &

'handara& Maharashtra.

A new plant is to be set to be launched in 2ttaranchal at *ant $agar with a plant

capacity of 6= &=== commercial ve hic les . "arly products of Ashok !eyland

included the !eyland +omet bus chassis sold to many operators including

Hyderabad )oad Transport& Ahmedabad Municipality& Travancore State Transport&

'ombay State Transport and %elhi )oad Transport Authority.

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

from Ashok !eyland. Some of them like the %ouble %ecker and 3estibule buses

are uniCue models from Ashok !eyland& tailor made highFdensity routes.

Statistics reveal that the company is Indias largest eBporter of medium and heavy

duty trucks. It sells close to :4&=== medium and heavy vehicles each year. The

company has a near


11/42

ORGAN I ' A TION STRUCTURE

In -


12/42

0ith a commanding strength of the about -/&=== employees the company is

looking forwards to enhance the scope of its action. It is aiming at eBpanding its

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

looking to acCuire a small to medium siEed commercial vehicle manufacturers in

+hina and other developing nations& which have an established product line. An

eBample would be the /==9 acCuisition of the +Eech based Avias truck business

rechristened Avia Ashok !eyland Motors.



13/42

VISION

'e among the top Indian corporations acknowledged nationally and internationallyfor

F "Bcellence in Cuality of its products.

F "Bcellence in customer focus and service.

F

MIS S ION

'e a leader in the business of commercial vehicles& eBcelling in technology& Cuality

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

meeting national and international environmental and safety standards.

GEMBA

,emba is a 5apanese word meaning J)eal *laceK where the real action takes place.

In the manufacturing industry& there are 4 ma(or activities directly related to

earning money& developing& producing and selling products.



14/42

GEMBA KAI'EN

Three ground rules for practicing kaiEen in ,emba.

-. House eeping

/. Muda "limination L0aste "limination

0aste of over production

0aste of inventory

0aste of waiting

0aste of Motion

0aste of transportation

0aste of *roducing )e(ects

0aste of processing

4. StandardiEation.

GEMBA MISSION

$iN-$ew 9 initiatives

-. Increase in the number of ,"M'A

/. 7s LS"I)I& S"ITO$& S"ISO& S"I"TS2& SHITS2"

4. ""I ?"ffort and "rgonomic indeB@

6. +MI ?+ost management initiative@

7. Inventory Initiative

8. +ritical machine uptime

9. >uality

:. Safety



15/42

VENDO R OPPORTUNITIE S

Our 3endors are our valued partners in our business development and we shall

work with them in a spirit of mutual coFoperation to meet our business ob(ectives.

3endor %evelopment and Strategic Sourcing are handled by +orporate Materials

%epartment ?+M%@. +M% identifies the vendors& rates the vendors based on

feedback received from Supplier >uality Assurance +ell& sends drawings

specifications& calls for Cuotes with detailed breakFup of operationFwise costs& and

negotiates the price at which the parts will be supplied.

In addition to +M% at "nnore& and the two 2nits at Hosur& there are Materials

Management %epartments ?MM%s@ for scheduling based on unit production plan.

V%*+ Dl+-.%# +/ S#a#012 S+32"4

Strategic Sourcing is central to the integrated Materials Management function.

Ashok !eylandGs policy is to develop a vendor base committed to continuous

improvement to meet Cuality& cost and delivery standards.

Ashok !eyland considers its vendors as -a#%" 1% -+0"" and believes in

establishing mutually beneficial relationships. Ashok !eyland provides necessary

technical assistance in the form of *ro(ect and *roduction "ngineering& to maintain

Cuality levels. In addition& where reCuired& Ashok !eyland also helps vendors

financially.



16/42

53al1/12a#1+% A%al6 " 1" 7 E823#1"

Ashok !eyland has a tieFup with 'ITS& *ilani for a customFdesigned& offFcampus

/Fyear MS course in "ngineering Management. Aimed at making Managers out of

"ngineers& assignments and pro(ects are central to the learning process thus

bridging the classroom with the engineersG workplace. rom /===& a 'S

programme in Industrial "ngineering and Technology& is offered for diploma

holders& again in collaboration with 'ITS. Apart from updating their knowledge

base& the programme empowers engineers to acCuire multiple skills.

Ashok !eyland is one of the moving forces behind an M.Tech course in

Automobile "ngine Technology (ointly managed by the automobile industry?Indian Society for Automotive Technology& made up of auto manufacturers@& IIT&

Madras and Institute ranPois du *etrol& the rench institute for I+ engines.



17/42

ORGANISATION STRUCTIURE MA$A,I$, %I)"+TO)

"1"+2TI3" %I)"+TO)

S"$IO) %I)"+TO)

,"$")A! MA$A,")

%"*2T# ,"$")A! MA$A,")

ASST. ,"$")A! MA$A,")

%I3ISIO$A! MA$A,")

S"$IO) MA$A,")

MA$A,")

%"*2T# MA$A,")

ASST. MA$A,")

S"$IO) OI+")

OI+")



18/42

D E P A R TMENT F UNC T IONS

The ma(or functional areas of the unit and the ma(or departments which oversee

those areas are catalogued as followsD

-. *ersonnel and Administration %epartment

/. *urchase Q Material *lanning %epartment

4. *roduction %epartment

6. inance %epartment

7. Systems %epartment

8. )esearch Q %evelopment.



19/42

FMT

PERSONN E L 9 ADMINISTR A T ION

D-a#.%#al S#32#3

%,M

%I3ISIO$A

! MA$A,")

I)

Sr.

MA$A

,")

H)

M"%I+A

!

OI+"

)

+HI"

S"+2)IT#

OI+")

FMA$A,")F

%I3ISIO$A!

MA$A,")FASST.

MA$A,")

FOI+")S

FASST.

MA$A,")

FMT

FOI+")



20/42

RECRUITM

ENT

)ecruitment is the process of Rfinding and attracting capableapplicants for employment. The process begins when new recruits are

sought and ends when their applications are submitted. The result is a pool

of applicants from which new employees are selected.



21/42

TRAINING

Training is an onFgoing process aimed at capabilityFbuilding of the employees at

all levels. Training programme is classified into

Skills

nowledge

'ehavior

WORKMEN CAPABILITY BUILDING

Training Q %evelopment for the unioniEed employees at the manufacturing units

is focused on skill development. 'oth internal and eBternal training is given for

associates. ,uest lectures of eBternal faculty and various other industrial visits will

be arranged for associates. In addition to some programmes like engineering

drawing and waste elimination are also conducted.

DEVELOPMENT ACTIVITIES

The following are the developmental activitiesD

T"I Total "mployee Involvement

+, +ross unctional ,roup

>+ >uality +ontrol

SS Suggestion Scheme


22/42

E.-l+6 wl/a "2$."

The following are the welfare schemes available to the employees.

+ a n t e e n facilities

M e d i c a l claims

T r a n s p o r t facilities

A s h o k !eyland School for their children

S c h o la rs h ip schemes

) e c r e a t i o n facilities

PERFORMANCE APPRAISAL

R*erformance appraisal is an ob(ective assessment of an individuals performance

against well defined benchmarks. The performance appraisal method followed is

based on the Superior subordinate relationship& whereby the superiors rate their

subordinates. They are rated on the basis of their performance.

CORPORATE SOCIAL RESPONSIBILITY

% o n a t i o n s

+ a r e e r guidance

A I % S awareness


23/42

PURCHASE 9 M A TERIAL PLANNING

or a manufacturing company to produce end items to meet demand the

availability of sufficient production capacity must be coFordinate with the

availability of raw materials and purchased items from which the end items are to

be produced. The following are the system which is followed to procure materialsD

F5IT

F!+!

FM)*

F3MI

FA$'A$

JIT

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

activities by providing the right part at the right place at right time .5IT encompasis

the successful eBecution of all manufacturing activity reCuired to produce a final

product from design to delivery and including all stages of conversion from raw

materials onwards.

PURPOSE OF JIT

Fhave only the reCuired inventory need

Fimprove Cuality to Eero defects

Fto reduce lead time

Fto incrementally revise the operations themselves and to accomplish these

things at minimum cost.


24/42

LOW COST LOGISTICS (LCL)

!+! Includes materials such as bolts nuts etc. these are purchased in bulk and

they are used for production. They dont affect the inventory cost.

MATERIAL RE5UIREMENT PLANNING

Material is a techniCue for determining the Cuantity and timing for the

acCuisition of dependent items needed to satisfy master schedule reCuirements

Manufacturing of the specific

An alternative approach to managing dependent demand items is planned for

*rocurement or components that will be reCuired to produce the reCuired

Cuantities of end production schedule indicated by the master production schedule.

BILL OF MATEIALS

The parts components reCuirements of the final product which is to be

manufactured is usually presented in the form of a product structurebill of

materials. it is a listing of all components that go into an assembled item. It

freCuently includes the part number and Cuantity reCuired per assembly.


25/42

KANBAN

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

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

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

a container is depleted& a A$'A$ that defines reCuirements of inventory items

to continue the production process is kept in the container.

PDI (PRE DELIVERY INSPECTION)

Testing of vehicle on real road conditions

The following are the various tests done to test the vehicleD

-. Speed test

/. Acceleration test

4. 3ibration test

6. TorCue tightening

7. Oil level and water level checking

8. "lectrical components checking

9. Air leakage test

:. ,rease level checking


26/42

CUSTOMER RETENTION4

It represents the activities that produce the necessary customer satisfaction that

creates customer loyalty& which actually improves the bottom line. It moves

+ustomer satisfaction to the neBt level by determining what is truly important

to the customers and making sure that the customer satisfaction system focuses

valuable resources things that really matter to the customer. It is the connection

between customer satisfaction and the bottom line.

WAYS TO RETAIN CUSTOMERS4

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

-. 0arranty eBpenditure measure

/. %ealers conference

4. +ustomer visits

6. Monthly plant Cuality review

FEEDBACK FROM CUSTOMERS4

eedback is collected from the customers regarding Cuality through the

following ways.

o +ustomer visits

o TollFfree telephone number

o +omment card

o )eport card


27/42

IM*!"M"$T

PROBL EM SOLVING ME THOD

I%"$TI# TH" O**2)T2$IT#

*!A$ O) TH"2T2)"

A$A!#S" TH"

*)O+"SS

A+T

*!A$

STA$%A)%I;" TH"

SO!2TIO$

ST2%#%O %"3"!O* TH" O*TIMA!

SO!2TIO$

ST2%#

TH"

)"S2!TS


28/42


29/42

MODU L ES USED INSIDE THE COM P AN Y

A+! F Access +ontrol Module

'OM F 'ill of Material

M*! F Material *lanning

S%' F Supplier %atabase

*OS F *urchase Order System

I*S F Inspection *lanning Sheet

I$0 F In warding

5IT F 5ust In Time items

!+! F !ow +ost !ogistics Items

M)M F Sun +ontractor Material Issues

MT$ F Sub +ontractor Material Transfer

3>) F 3endor >uality rating

3%* F 3endor %elivery *erformance

ST F Stock Inventory

+*M F +omprehensive *rocess Master

**! F *roduction *lanning

S+ F Shop loor +ontrol

2*5 F 2nplanned 5obs

2)%+ F Inter 2nits )eceipt Q %ispatch

"1S F "Bcise

*S! F *riced Stored !edger


30/42

0M+ F 0orks Made Items +osting

3+S F 3ehicle +osting System

S+! F Sub +ontract !edger

)M,* )eturnable Material ,ate pass

$)M,* $on )M,*

,+S ,auge +alibration System

+S +hassis inal Specification

!TMS !ean Tool Management System

AMTF automated manual transmission

GROWTH MILES T O N ES OF A SHOK L EYLAND


31/42

-


32/42

PRODUCT PROFILE

Ashok !eyland offers a comprehensive product range with trucks from 9.7 tons

,30 to -/7 tons ,30. rom -< to := seaters a host of special applicationvehicles and diesel engines from industrial gensets and marine application.

*roduct profile can be broadly split into siB categories viE. passenger& goods&

cargo& heavies& special 3ehicles and "ngines.

PASSENGER

I+3 3iking MO3+heetah 3iking Hino 3iking A!)ear "ngine 'us 3estibule 'us *anther+ruiser +$, 'us 3ikingSuper %ouble %ecker

GOODS

Haulage +omet 'ison

Tipper Taurus 816 Tractor+omet /8-6 Tusker 47-8 Multi ABle TuskerCARGO

!+3 Haulage +argo


33/42


34/42

S2**!I") O

;&PIPES

2I)M"$TF

;.-7= !OO) A**)O1.


35/42


36/42

S2**!I") O

;&ENGINE COWL(INSIDE COVER HOOD)

2I)"M"$TF47= TO 6==

%AI!#F-7 TO -:avg.

Month)y s*hedu)e#)e(d time%

A!AD*2)DSD


37/42

22.06.2010

M>" Sa%*$a

E.a1l A**"" 4 "a%*-&?3.a@"l*l&2+. "-?@"l*l&2+.

Kind Attn: Mr. Sandeep

Our confirm reCuirement for the month of 5uly-= and Tentative reCuirement for the month of

Aug-= is as given below.

S.

No. "(rt No. 'es*ription 6u)y89 Au+89

1 F8254500 SINGLE WIDE MIRROR 1600 1300

2 F8068100

RR VIEW MIRROR-EXPORTS

Rh 3500

Lh - 3500 7000 1600

#ou are reCuested to arrange to dispatch material as per following weekly plan.

S

No "(rt No. 'es*ription

6u)y89

;


38/42

FIND I NGS

-. In this organiEation there is no fleBible manufacturing system.

/. There is no effective utiliEation of Human )esources.


39/42

4. To solve their work related problems >++ ?>uality +ontrol +ircle@ and

cross functiona l team are mad e e ffect ive. 0ork instruct ions&

s tandard operating procedures& inspection reports& >+ chart are effective.

SUGGESTIONS

-. The company should earmark more money for the advertisement and sales

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

image.

/. The company should concentrate on markets in the international arena where

its competitors are less powerful.

4. +omplaints should be rectified in the shortest possible time. or this a

customer satisfaction cell should be organiEed

.

CONCLU S ION

Ashok !eyland is a well known automobile manufacturing company

in India. In Alwar there is a well planned organiEation structure being

followed. There is a well integration of all the functional departments


40/42

which facilitates the use of software like ")*. )etention of the talented

people is essential as they contribute a lot to success of the organiEation.

The catalogued training programme and the resulted report have beenof great help to me& an aspirant manager& to understand the functioning of a

ma(or establishment like Ashok !eyland. The training programme has

also revealed ma ny unknown facts about the working of a manufacturing

unit.


41/42

BIBLIOGRAPHY

-. !ogistics and supply chain managementF 'y Martin +hristopher

/. +ompany Manual& Ashok !eyland !td.&Alwar

4. Supply Chain ManagementD Strategy& *lanning and operations by Sunil Chopra ,Peter Meindl, D.. Kalrapublished by *earson "ducation&Inc.&/==8

6. www.Ashok !eyland !td.com


42/42

Rahul Report 1

Documents

Transcript of Rahul Report 1