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Page 1: Ashok Leyland 1

A STUDY ON

“WORKING CAPITAL MANAGEMENT” (conducted on behalf of Himson Textile Engineering Industries Pvt. Ltd.)

[From 1ST January, 2012 to 28th February, 2012]

A Project Report submitted in partial fulfillment of the requirements For the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATIONTO

VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT

Submitted By: jayani Vijay R.

S.Y.B.B.A. (Sem.–lV)

Roll No: 59

under the guidance of Mr. Aatish patel

Submitted To:

THE CO-ORDINATOR

AMBABA COMMERCE COLLEGE, MANIBA INSTITUTE OF BUSINESS MANAGEMENT

& B.C.A COLLEGE-SABARGAM

(MARCH-2012)

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DECLARATION

I am jayani Vijay R. student of the Surat people co op bank collage of business administration introduce my report on our summer industrial training.

I make a choice the Ashok Leyland because of good reputation & good sound will in the market. I have very good memories with Ashok Leyland .I spent two months as part of syllabus of S.Y.B.B.A.

I achieve a lot of during the industrial training it was great experience that is never forget in my life and it is also helpful in my future. I thanks to the management of company who give me excellent guidance for preparing this report.

I thanks to the South Gujarat University for making such type of syllabus in B.B.A. programmed in which students gets practical knowledge about industries. I want to special thank my guide Mr. Prashant Vekariya I had given me immense pleasure to associate self with though provoking and absorbing. I am thankful to those who have directly & indirectly co-operated to finish this venture.

Place: - Surat

Date:-

AMBABA COMMERCE COLLEGE, MANIBA INSTITUTE OF BUSINESS MANAGEMENT

& B.C.A COLLEGE-SABARGAM

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1. Industry Profile

SR NO PARITICULAR PAGE NO

1. INDUSTRY PROFILE 8-19

(A) HISTORY OF INDUSTRY

(B) INTRODUCTION

(C) INDUSTRY SCENARIO IN INDIA

2. COMPANY PROFILE

(A) INTRODUCTION

(B) HISTORY

(C) TIME LINE

(D) VISION

(E) MISION

(F) OBJECTIVE

(G) MANAGEMENT BODY

(H) ORGANIZATION CHART

(I) PRODUCT

(J) Awards & achievement

3. DEPARTMENTAL INFORMATION

(A) MARKETING DEPARTMENT

(B) HRM DEPARTMENT

4. SWOT ANALYSIS

1. STRENGTH

2. WEAKNESS

3. OPPORTUNITY

4. THREATS

5. CONCLUSION

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INDUSTRY PROFILE

1. A) History:-

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HistoryIntroduction of industryIndustry scenario in India

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1948

The birth of Ashok Motors

Founded by Raghunandan Saran, Ashok Motors was set up in collaboration with Austin Motor Company, England and incorporated on September 7th for the assembly of Austin cars.

1949

The first A40 assembled

Production began in September at the factory situated at Ennore, south of Madras, and soon the first indigenously assembled A40 Austin car was rolled out.

1950

Ashok Motors and Leyland, UK agree to collaborate

An agreement was reached between the two companies and Ashok Motors got sole rights to import, assemble and progressively manufacture Leyland trucks for seven years.

1951

Assembly of Leyland chassis commences

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The first Leyland chassis assembled by Ashok Motors at Ennore were four Comet 350-engines tippers sold to the Mangalore Tile Factory.

1954

Government approval for manufacture of commercial vehicles

The Government approved the progressive manufacture of Leyland commercial vehicles and a license for the manufacture of 1,000 Comets a year was granted.

1955

Ashok Motors becomes Ashok Leyland

Named after Raghunandan’s son, Ashok, the company was renamed ‘Ashok Leyland’ with equity participation from Leyland Motors, Ltd.

1967

India’s first double-decker arrives

‘Titan’ - The first Indian-made double decker with 50% indigenous components was launched.

1969

A revolution in steering

For the first time, power steering was featured on commercial vehicles.

1970

A specially designed vehicle for the Indian Army

1,000 numbers of the 6x4 ‘Hippo’ Tipper was designed and delivered to the Indian Army based on its specific requirements.

1972

Production target upped to 10,000 vehicles a year

The license to manufacture 10,000 vehicles a year was granted

1974

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Turnover tops Rs. 1,000 million

Ashok Leyland’s turnover for the first time crossed Rs. 1,000 million

1976

The Viking appears

The ‘Viking’, the first ever bus with an alternator and a unique front overhang that facilitated front entry hit the Indian roads.

1978

A Cheetah bounds into the frame

India’s first rear-engine bus – ‘Cheetah’ was introduced with mixed reactions from drivers. While it cut off much of the heat, their complaint was that they “could not hear the engine!”

1980

Hosur plant starts operations

The Company’s second plant – Hosur 1 – was inaugurated by M. G. Ramachandran, the then Chief Minister of Tamil Nadu.

Two major new truck introductions

India’s first 13-ton truck – ‘Tusker’ with a 125 hp engine was launched followed by the country’s first multi-axle truck – ‘Taurus’.

1982

India’s first Vestibule bus introduced

India’s first vestibule or the articulated bus was introduced ushering in a whole new concept in urban travel.

Manufacturing footprint expands northwards

Two new manufacturing facilities at Bhandara (Maharashtra) and Alwar (Rajasthan) were inaugurated in March and August respectively.

1993

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First Indian auto company to receive ISO 9002 certification

This was followed two years later with the ISO 9001 Certification.

1995

First driver training facility set up

The most comprehensive driver training facility in India’s private sector was set up at Namakkal, right in the heart of Tamil Nadu’s trucking community.

1997

India’s first CNG bus launched

As a major step in developing alternate fuel for mass transportation, India’s first CNG-powered bus was handed over to the BEST (Brihan Mumbai Electricity Supply and Transport), Mumbai

2005

A Stag crosses the border

When the Srinagar – Muzzafarabad road route was open for traffic, the first vehicle to cross from the Indian side was a Stag bus, flagged off by Prime Minister Dr. Manmohan Singh and UPA Chairperson, Mrs. Sonia Gandhi.

2007

Joint Venture forged with Nissan Motor Company, Japan

For manufacture and marketing of Light Commercial Vehicles

Carrying the dreams of a nation

An Ashok Leyland double decker bus carried the victorious World T20 cricket team, under the leadership of M S Dhoni, on their lap of honour through the streets of Mumbai.

2010

India’s first Hybrid CNG Plug-in Bus

Showcased at Auto Expo 2010 and later did service during the Commonwealth Games moving VIPs and media at Pragati Maidan, New Delhi.

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Pantnagar plant inaugurated

The Company’s modern, technologically world-class and largest plant went on stream with a capacity to touch 75,000 vehicles.

The U-Truck platform launch

The new, future-ready U-Truck platform entered the market with the promise of a holistically superior level of trucking.

2012

Jan Bus

World’s first single step entry, front engine, fully flat floor bus unveiled by Union Minister Shri Kamal Nath

U-3723

Introduced India’s first 37-tonne haulage truck with the highest payload of up to 27 tonnes

1. B) INTRODUCTIONAshok Leyland is a commercial vehicle manufacturing company based in Chennai,

India. Founded in 1948, the company is one of India's leading manufacturers of commercial vehicles, such as trucks and buses, as well as emergency and military vehicles. Operating six plants, Ashok Leyland also makes spare parts and engines for industrial and marine applications. It sells about 60,000 vehicles and about 7,000 engines annually. It is the second largest commercial vehicle company in India in the medium and heavy commercial vehicle (M&HCV) segment .With passenger transportation options ranging from 19 sweaters to 80 sweaters, Ashok Leyland is a market leader in the bus segment.

The company claims to carry over 60 million passengers a day, more people than the entire Indian rail network. In the trucks segment Ashok Leyland primarily concentrates on the 16 ton to 25 ton range of trucks. However Ashok Leyland has

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presence in the entire truck range starting from 7.5 tons to 49 tons. The joint venture announced with Nissan Motors of Japan would improve its presence in the Light Commercial Vehicle (LCV) segment (<7.5 tons).

The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by independent India. Pundit Jawaharlal Nehru, India’s first Prime Minister, persuaded Mr. Raghunandan Saran, an industrialist, to enter automotive manufacture. The company was established in 1948 as Ashok Motors to assemble Austin cars. The company’s destiny and name changed soon with equity participation by British Leyland and Ashok Leyland commenced manufacture of commercial vehicles in 1955. Today the company is the flagship of the Hindu Group, a British- based and Indian originated transnational conglomerate. In 1968, production of the Leyland Titan ceased in Britain, but was restarted by Ashok Leyland in India.

The Titan PD3 chassis was modified, and a five speed heavy duty constant-mesh gearbox utilized, together with the Ashok Leyland version of the O.680 engine. The Ashok Leyland Titan was very successful, and continued in production for many years. Through tie-ups with global technology leaders, supplemented by in-house R&D infrastructure and capabilities, Ashok Leyland has maintained its technological leadership even as it offers the most comprehensive range of model configurations in its class.

In the journey towards global standards of quality, Ashok Leyland reached a major milestone in1993 when it became the first in India's automobile history to win the ISO 9002 certification. The more comprehensive ISO 9001 certification came in 1994, QS 9000 in 1998 and ISO 14001certification for all vehicle manufacturing units in 2002. In 2006, Ashok Leyland became the first automobile company in India to receive the TS16949 Corporate Certification. The company has increased its rated capacity from 50,000 vehicles per annum to nearly 77,000 vehicles per annum. Also further investment plans including putting up two new plants in North India are fast A foot. After expansion, the company shall attempt to dominate the medium- and heavy-duty commercial vehicles market in India.

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1. c) INDUSTRY SCENARIO IN INDIA

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2. Company Profile

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2. A) INTRODUCTION

For over six decades, we have been moving people and goods, touching you and millions across 50 countries worldwide. Today, we are the flagship of the Hinduja Group, one of the

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INTRODUCTION HISTORY TIMELINE VISION MISION OBJECTIVE MANAGEMENT BODY ORGANIZATION CHART PRODUCT Awards & achievement

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largest commercial vehicle manufacturers in India with a turnover of US $ 2.5 billion in 2011-12 having consistently delivered profits to our stake-holders since inception.

Our buses safely carry 70 million passengers to their destinations every day. Close to 700,000 of our vehicles keep the wheels of economies turning and, as the largest supplier of logistics vehicles to the Indian Army, we play a critical role in keeping our borders safe.

For our customers, we are committed to provide transport solutions that offer the best operating economics while for users of our vehicles, comfort and safety. This has driven us to pioneer concepts that have become industry norms fueled both by our robust inherent R&D capabilities and the strength of strategic alliances forged with global technology leaders.

Headquartered in Chennai, India, our manufacturing footprint is pan-India with two facilities in Prague (Czech Republic) and Ras Al Khaimah (UAE).

To offer you more from our stable of offerings, we have inked 50:50 Joint Ventures (JV) with Nissan Motor Company (Japan) for Light Commercial Vehicles and John Deere (USA) for construction equipment. Our JV with Continental AG (Germany) is for developing automotive Infotronics while the one with the Altheas Group is for producing high press die casting extruded aluminum components for both the automotive and telecommunication sectors.

2.B) History:-

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1948

The birth of Ashok Motors

Founded by Raghunandan Saran, Ashok Motors was set up in collaboration with Austin Motor Company, England and incorporated on September 7th for the assembly of Austin cars.

1949

The first A40 assembled

Production began in September at the factory situated at Ennore, south of Madras, and soon the first indigenously assembled A40 Austin car was rolled out.

1950

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Ashok Motors and Leyland, UK agree to collaborate

An agreement was reached between the two companies and Ashok Motors got sole rights to import, assemble and progressively manufacture Leyland trucks for seven years.

1951

Assembly of Leyland chassis commences

The first Leyland chassis assembled by Ashok Motors at Ennore were four Comet 350-engines tippers sold to the Mangalore Tile Factory.

1954

Government approval for manufacture of commercial vehicles

The Government approved the progressive manufacture of Leyland commercial vehicles and a license for the manufacture of 1,000 Comets a year was granted.

1955

Ashok Motors becomes Ashok Leyland

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Named after Raghunandan’s son, Ashok, the company was renamed ‘Ashok Leyland’ with equity participation from Leyland Motors, Ltd.

1967

India’s first double-decker arrives

‘Titan’ - The first Indian-made double decker with 50% indigenous components was launched.

1969

A revolution in steering

For the first time, power steering was featured on commercial vehicles.

1970

A specially designed vehicle for the Indian Army

1,000 numbers of the 6x4 ‘Hippo’ Tipper was designed and delivered to the Indian Army based on its specific requirements.

1972

Production target upped to 10,000 vehicles a year

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The license to manufacture 10,000 vehicles a year was granted

1974

Turnover tops Rs. 1,000 million

Ashok Leyland’s turnover for the first time crossed Rs. 1,000 million

1976

The Viking appears

The ‘Viking’, the first ever bus with an alternator and a unique front overhang that facilitated front entry hit the Indian roads.

1978

A Cheetah bounds into the frame

India’s first rear-engine bus – ‘Cheetah’ was introduced with mixed reactions from drivers. While it cut off much of the heat, their complaint was that they “could not hear the engine!”

1980

Hosur plant starts operations

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The Company’s second plant – Hosur 1 – was inaugurated by M. G. Ramachandran, the then Chief Minister of Tamil Nadu.

Two major new truck introductions

India’s first 13-ton truck – ‘Tusker’ with a 125 hp engine was launched followed by the country’s first multi-axle truck – ‘Taurus’.

1982

India’s first Vestibule bus introduced

India’s first vestibule or the articulated bus was introduced ushering in a whole new concept in urban travel.

Manufacturing footprint expands northwards

Two new manufacturing facilities at Bhandara (Maharashtra) and Alwar (Rajasthan) were inaugurated in March and August respectively.

1993

First Indian auto company to receive ISO 9002 certification

This was followed two years later with the ISO 9001 Certification.

1995

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First driver training facility set up

The most comprehensive driver training facility in India’s private sector was set up at Namakkal, right in the heart of Tamil Nadu’s trucking community.

1997

India’s first CNG bus launched

As a major step in developing alternate fuel for mass transportation, India’s first CNG-powered bus was handed over to the BEST (Brihan Mumbai Electricity Supply and Transport), Mumbai

2005

A Stag crosses the border

When the Srinagar – Muzzafarabad road route was open for traffic, the first vehicle to cross from the Indian side was a Stag bus, flagged off by Prime Minister Dr. Manmohan Singh and UPA Chairperson, Mrs. Sonia Gandhi.

2007

Joint Venture forged with Nissan Motor Company, Japan

For manufacture and marketing of Light Commercial Vehicles

Carrying the dreams of a nation19

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An Ashok Leyland double decker bus carried the victorious World T20 cricket team, under the leadership of M S Dhoni, on their lap of honour through the streets of Mumbai.

2010

India’s first Hybrid CNG Plug-in Bus

Showcased at Auto Expo 2010 and later did service during the Commonwealth Games moving VIPs and media at Pragati Maidan, New Delhi.

Pantnagar plant inaugurated

The Company’s modern, technologically world-class and largest plant went on stream with a capacity to touch 75,000 vehicles.

The U-Truck platform launch

The new, future-ready U-Truck platform entered the market with the promise of a holistically superior level of trucking.

2012

Jan Bus

World’s first single step entry, front engine, fully flat floor bus unveiled by Union Minister Shri Kamal Nath

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U-3723

Introduced India’s first 37-tonne haulage truck with the highest payload of up to 27 tonnes

2. C timeline

1966:- Introduce full air brakes.

1967:- Launched double-decker bus.

1968:- Offered power steering in commercial vehicles.

1979:- Introduced multi-axle trucks.

1980:- Introduced the international concept of integral bus with air suspension.

1982:- Introduced vestibule bus.

1992:- Won self-certification status for defense supplies.

1993:- Received ISO 9002.

1997:- India's first CNG powered bus joined the BEST fleet.

2001:- Received ISO 14001 certification for all manufacturing units.

2001:- Launched hybrid electric vehicle.

2. D) VISION 21

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Ashok Leyland, over five decades in the transport solution industry, offering a world class range of trucks, buses, special application vehicles, and engines, touching millions across 40 countries worldwide. Ashok Leyland has a good customer base most of the customer who comes to Ashok Leyland become a loyal customer.

Ashok Leyland is Brand name with the flagship of hinduja group. To sell is to know your customers. Ashok Leyland has built-up a data base of 130,000 customers. The information captures the business nuances of the customers and shows Ashok Leyland precisely where and how the customer would use trucks. The company today knows much more about its customers today than earlier.

Ashok Leyland has a large customer base for public transport buses, commercial vehicles, defense and special vehicles for special purpose. It caters to different class of society which includes individual buyer, industrial buyer, government buyer and defense also.

2. E) MISION

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3. Research Methodology

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4. Departmental

Information5. Findings

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CONTENTS  

INTODUCTION.

CUSTOMER BASE AND SEGMENTATION.

COMPETITION OF ASHOK LEYLAND WITH OTHER AUTOMOBILE SECTOR.

PROCESS FLOW CHART OF ASHOK LEYLAND

INPUT AND OUTPUT PROCESS.

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DIAGRAM SHOWING THE LAYOUT AND FLOW OF MATERIAL

QUALITY ASSURANCE OF ASHOK LEYLAND.

SUPPLY CHAIN MANAGEMENT AT ASHOK LEYLAND.

DRAWBACK.

LEARNING ACHIVED.

 

 

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Product of Ashok Leyland:-

1:-Buses Leaders in the Indian bus market, offering unique models such as CNG, Double Decker and Vestibule bus.

 

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2:-Trucks:-Pioneers in multi axle trucks and tractor-trailers

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CUSTOMER BASE AND SEGMENTATION Segmentation of Ashok Leyland can be done on the basis of its user.

Segmentation Industrial user 

 

INDUSTRIAL USER PUBLIC USER GOVERNMENT USER DEFENSE USER

INDUSTRIAL USER: - Industrial user includes transporter, Logistics Company, coal and mining industry and other industries etc.

PUBLIC USER:-Public user includes individual or passenger transport.

GOVERNMENT USER: - Government user include state and central transport like DTC, UPSRTC and other.

DEFENSE USER: - Defense user include Indian army trucks, tanks and transport buses.

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COMPETITION OF ASHOK LEYLAND WITH OTHER SECTOR

COMPETITION WITH TATA MOTORS:-

Ashok Leyland Ltd. will introduce 15 new truck models as India's biggest truck makers by sales seek to beat growing competition from Tata motors. The new truck models under its new U-Truck platform by March 2011, the trucks will be between 16 tonners and 49 tonners. To Compete with Ashok Leyland Tata motors will also introduce three new heavy trucks in India by March from its Prima range of so-called world trucks. As, we had seen that Ashok Leyland low floor buses giving tide competition to Tata motors low floor buses in Delhi.

COMPETITION WITH EICHER:-

Eicher is also one of competitor of Ashok Leyland, Eicher began its business operation in 1959with Tactor, but now Either had expanded itself with Trucks, Buses, Gear box, etc.Eicher is giving competition to Ashok Leyland with Trucks and Buses, Eicher small trucks are making their good market in India.

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COMPETITION WITH MAHINDRA:-

Mahindra had also launched a truck in collaboration with Navistar Inc. USA on Indian roads known as Mahindra Navistar, which is going to give tuff competition to Ashok Leyland. With a commanding strength of the about 12,000 employees the company is looking forwards to enhance the scope of its action. It is aiming at expanding its production operation overseas to make it a more globally accessible company. It is looking to acquire a small to medium sized commercial vehicle manufacturers in China and other developing nations, which have an established product line. An example would be the 2007 acquisition of the Czech based Avia truck business rechristened Avia Ashok Leyland Motors

PROCESS FLOW CHART OF ASHOK LEYLAND

Purchase of raw material

Components machined

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Rough Drilling Finish Washing Boring End Milling Assembly of bearing

Milling Milling milling cape

Engine Assembly

Fixing of Crankshaft and Bearing Caps

Fixing of assemble of fitting of compressor fitting of fitting of

Flywheel housing Oil pump strainer fitting Oil Coolant belt

Final Product

 

  CRANKSHAFT :-

CRANKSHAFT is attached with a gear and is fixed to the bottom of the cylinder block by bearing caps. 

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CAMSHAFT:-

  CAMSHAFT is attached with a timing gear and is fixed in the required space provided in the cylinder block.

Q UALITY ASSURANCE OF ASHOK LEYLAND

Ashok Leyland believe that our impressive strides in the marketplace stem in equal parts from our proactive approach and our customers' unstinting support, earned the only way Ashok Leyland know: by giving our customers the most appropriate transport solutions for each of their applications, and by backing them up with consultancy, finance, driver training and responsive after-market network. Ashok Leyland are conscious of the fact that vehicles are more than just a means of transporting people and goods; Ashok Leyland understand that they have adept and far-reaching impact on society, the national economy and the environment.

Ashok Leyland has, therefore, always endeavored to engineer products and systems that promote progress on all these fronts. Ashok Leyland firmly believe that this honest approach will make the Ashok Leyland marquee the symbol of the very best in transportation, today andtomorrow.Ashok Leyland care for their customer, they try to give best quality engineering as well as best quality service to their customer.

The major characteristic through which Ashok Leyland give the best quality to their customer are:-

* Reliability

* Maintainability

* Safety

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* Strength

* Performance

* Features

* Conformance

* Durability

* Service

* Response

*Aesthetics

* Reputation 

Ashok Leyland is committed to achieve customer satisfaction by anticipating and delivering superior value to the customer in relation to their own business, through the products and services offered by the company and comply with statutory requirements.

The quality assurance of Ashok Leyland is to make continual improvements in the processes that constitute the quality management system, to make them more robust and to enhance their effectiveness and efficiency in achieving stated objectives leading to

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

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(2). Maximum use of employees potential to contribute to quality and environment by progressive up gradation of their knowledge and skills as appropriate to their functions.

(3). Seamless involvement from suppliers and dealers in the mission of the company to address customers changing needs and protection of the environment.

(4). completed journey towards global standards of quality, history to win the ISO 9002 certification. The more comprehensive ISO 9001 certification came in 1994, QS 9000 in 1998 and ISO 14001.

SUPPLY CHAIN MANAGEMENT AT ASHOK LEYLAND

It has been found that the Automobile Giant Ashok Leyland Ltd, Chennai, has got one of thievery successful Supplier development Program as part of its World-Class Supply Chain Management.

Mission Statement of the Company: "Our Vendors are our valued partners in our business development and we shall work with them in a spirit of mutual co-operation to meet our business objectives."

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Vendor Development and Strategic Sourcing are handled by Corporate Materials Department (CMD).

CMD identifies the vendors, rates the vendors based on feedback received from Supplier Quality Assurance Cell, sends drawings / specifications, calls for quotes with detailed break-upon operation-wise costs, and negotiates the price at which the parts will be supplied.

In addition to CMD at Encore, and the two Units at Horus, there are Materials Management Departments (MMDs) for scheduling based on unit production plan

 

Vendor Development of Strategic Sources

Strategic Sourcing is central to the integrated Materials Management function. Ashok Leyland's policy is to develop a vendor base committed to continuous improvement to meet quality, cost and delivery standards.Ashok Leyland considers its vendors as partners in progress and believes in establishing mutually beneficial relationships.

Ashok Leyland provides necessary technical assistance in the form of Project and Production Engineering, to maintain quality levels. In addition, where required, Ashok Leyland also helps vendors financially.

SCM one of the important task to improve, because some time before, The Company was facing the huge task of integrating its entire supply chain and at the same time it had to reduce its costs, inventory, and improve customer satisfaction. Rising raw material cost was a serious concern for the company.

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Therefore, Ashok Leyland decided to streamline its supply chain process and the company started its SCM project µOscars to optimize its supply chain and rationalize its sources. The project µOscars Inbound included supplier partnership, vendor base rationalization, tieringof suppliers and cluster information, inventory optimization through JIT and LCL, total cost management, logistics initiatives, e-sourcing and global sourcing.

DRAWBACK

As Ashok Leyland is giving it’s best to its customer but then also there is some drawback:-

The domestic sales of the company are not up to the mark.

Ashok Leyland has not got a foothold in the luxury trucks segment in its domestic market.

Ashok Leyland have low cost advantage over its competitors, once the competitors find out the low cost production methodology then there will no competitive advantage.

CNG buses of Ashok Leyland are also not playing well on the roads, some or other break down creating problem for them.

 

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Some of the automobile companies are going to launch HMV to give competition to Ashok Leyland and till now Ashok Leyland not got any alternative to comptite with it.

LEARNINGS ACHIVED

Ashok Leyland has got the world class engineering and To offer world-class technology that is relevant and affordable to the Indian customer is the philosophy that drives R&D at Ashok Leyland. The role of Ashok Leyland is central in fulfilling the company-wide commitment to total customer Satisfaction. Ashok Leyland has achieved ISO 9002 in 1993.

Received ISO14001 certification in 2001 and many others. There are many world class product of Ashok Leyland like Buses for Public transport Purpose, Trucks for commercial purpose, vehicle for defense purpose and much other world class equipment. 

As we know through this project that Ashok Leyland is also one of the leading automobile manufacturers in the world and it also came to know that:-

Provide World class technology:-

To offer world-class technology that is relevant and affordable to the Indian customer is the philosophy that drives R&D at Ashok Leyland.

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Over the years, this philosophy has been translated time and again into products that seamlessly integrate international technology with local needs. "The role of R&D is central in fulfilling the company-wide commitment to total customer satisfaction" states Mr. R. Seshasayee, Managing Director, and adds that the increased infrastructural and financial support expresses the company's determination to become self-reliant in R&D.

Provide Value to the customer:-

The immediate R&D priorities are to pro-actively address safety and environmental issues, harness and adopt technologies that provide value to the customer in an atmosphere enabling creativity and innovation. Powering those who "engineer tomorrows" with an enabling infrastructure has been top priority for the company.Keep innovating there product:-

Ashok Leyland product development successes have come from a keen sense of anticipation and attentiveness. The company initiated research into alternative fuels well before legislative debate had even begun in the country. The result was the implementation of CNG technology ahead of the rest promising a breath of fresh air for polluted cities.

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MARKETING DEPARTMENT

Introduction

Department Structure

General Information

Product Decision

Global Marketing

Quality Control

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GENERAL INFORMATIONRESPONSIBILITY

They are responsible to satisfy the customer requirement by adopting better quality of product.

They are directly responsible to the general manager and the proprietor in-charge.

They are responsible to increase the volume of sales.

They are responsible from inquiry of goods and delivery of product to their customer.

They are responsible for the proportion of discount policy.

They are responsible for checking the account of customer.

They are responsible for attracting new customer for their product.

They are responsible to give the best advertisement in different media through which attracting number of customers.

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The Marketing Concept: -

Product Concept: -

The product is the most tangible and important and single component of the marketing programmer. Without a product, there is nothing to distribute, nothing to promote, nothing to price.

To the marketer products are building blocks of a marketing plan. Good products are key to market success. Product is the vehicle by which a company provides consumer satisfaction. It is the engine that pulls the rest of the marketing programmer. Products fill in the needs of society. They represent a bundle of expectations to consumers and society.

A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.

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Strategies for New Product Development: -

In a growing economy like in India, to be successful in the field of marketing, new consumer needs must be discovered and satisfied. A new product must be suitable to meet the changing needs of customer. The life of the firm is closely related to the development of new products through technological innovation new products means new profits.

For new product development, Ashok Leyland. Is a use following strategies:

First they contact their existing customers to introduce their new products & also request them to recognize their products to other interested retailer.

They arrange seminars in which they show the features, benefits, advantages of their products & also explain them how it affects their profit, productivity etc.

They also issue prospectus, which contains whole information related to product.

Thus, NPD is an important tool in the hand of firm for increasing their sales.

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As every being has life, a product has its life. FMCG Product may have not a longer life than consumer goods. When a product idea is commercialized, the product enters in to the market & competes with the rivals, for making sales & earning profits. Products, like human being, have length of life. The product life is very long for the production.

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Price may be defined as the exchange of the goods & services in terms of

money. What you pay is the price for what you get.

Pricing decisions have strategic importance in any enterprise. Pricing governs

the very feasibility of any marketing programmed because it is the only

element in a marketing mix accounting for demand & sales revenue.

Pricing strategy:

Ashok Leyland Research on market set its pricing strategies for their different

product:

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Marketing research is the systematic, design, collection, analysis & reporting of data & findings relevant to a specific marketing situation facing the company.

In the current competitive situation, it is necessary for every organization to research or examine their market situation at regular interval of time. Therefore company researches their prevailing market situation.

Ashok Leyland has also done this activity and for these purpose it

has a separate research & development department. It

examines the needs, wants & preferences of the consumers. It

prepares the report on the consumer needs what they want?

What their complaints are against the product? Etc.

Market segmentation is an effort to increase a company’s precision marketing. The starting point of any segmentation discussion is mass marketing.

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“Market segmentation consists of taking the total heterogeneous market for a product & dividing it in to several sub-markets or segments, each of which tends to be homogeneous in full significant aspects.” Business market can be segmented with some

Variables employed in consumer market segmentation, such as geography, benefits, sought & usage rate. Yet business marketer can also use several other variables.

Buyer’s behavior is never the same & the market could be segmented on the basis of buyer’s characteristics. The producer must understand the behavior of his customers & adopt different strategies according to the needs & characteristics of his customers, so that physical & human resources of the enterprise may be fully exploited & marketing objectives may be fully meet. There are three types of marketing strategies viz.

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Undifferentiated or market aggregation strategy.

Differentiated marketing strategy.

Concentrated marketing strategy.

There are certain criteria for market segmentation. If food

processing market is divided by company, the company size &

location the criteria is called demographic. If the Company

market is divided according to technology, user or non-user

status & customer capacities, the criteria are called as operating

variables. The other criteria are purchasing approaches,

situational factors & personal characteristics etc.

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Being a focused aim of founder was continuous quality improvement inspired whole group to achieve high degree of quality at every stage of production as well as management

Meeting customer need and satisfaction made easier through quality product and long-term business relationship

Consistency in product supply, achieved a high level of confidence in customer and high flow of repeat orders during a span of time.

Being a prime priority at every level in all departments made quality and consistency easier and continuous process

Quality will be measured and recorded at all stages like incoming material, in process material, and final inspection of products. Apart from this, customer feedback form will be studied to provide input to research team.

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We at Ashok Leyland. Dedicate excellence in our prime mission of supplying food product with updated technology, keeping in mind the need of the hour and global competency.

We are committed towards maximum customer satisfaction and to cater their needs and to match their expectations for quality, reliability, safety, and after-sale. We move as a well-organized team with active involvement of persons at all levels for continual process improvements underlining the aspirations of the customers. Our motto is to render quickest service to the customer at his call hence our concern for the customer and our customer to keep his wheel moving without any interruptions.

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HUMAN RESOURCE DEPARTMENT

Introduction

Personnel Policy

Recruitment & Selection

Facilities at the Plant

Incentives & Motivation System

Quality of Successful Manager

Training Process

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INTRODUCTION:-

The institute of personnel management London, U.K.,

defines personnel management has that part of

management concerned with people at work and with

their relationship within an organization. Its aim is to

bring together and developed into an effective

organization of man and woman who make up an

enterprise and having regard for the well being of

individual and of working groups to enable them to

make their contribution to its success.

Human resources have very much important in every organization. Human resources are the back bone of industry. The policy of the Ashok Leyland suggest as “To get customer satisfaction by providing a very high standard of products by including every employee”.

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HUMAN RESOURCE DEPARTMENT

(H.R.D.) ACTIVITIES:-

In our endeavor to facilities Ashok Leyland employees towards their growth and development the activities have been continuing at reasonable fair pace.

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An exclusive in-house training programmer has been designed to upgrade the technical knowledge of air operation.

“ Self- awareness and their personnel relationship” play a vital role in bringing about a sea change in the functioning of any system they have been organizing these programs on a continues basis to give exposure to all employees in a planned and phased manner.

Technical and non technical programs.

Orientation training programs for new employees.

PERSONNEL POLICY

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The Personnel policy of company included the job securities to

the employees give the right work to the right employee and also

give the training to the employees or their work to get work in

full fledge also provide the every well work environment to the

worker to shoe his ability in his way.

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Recruitment:-

“It is the process of finding and attracting capable applicants for

employment. The process beings when new recruits are sought and end

when their applicants are submitted”.

Selection:-

“It is the process of differentiating between applicants with a greater

likelihood of success in a job”.

Ashok Leyland, first of all decided how many number of personnel are to be contacted and what type of personnel to be contacted.

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Then after they decide area from where they will get their employee.

They looks employees at internal recruitment, present employees, employees referral, professional association, advertisement, campus recruitment, walk ins – write ins – talk ins, Radio & television etc.

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They start finding the employees before two

months ago from their required time.

Then after screen out employee and decides

whether they are applicable to do the job or not.

In this step, preliminary interview is to be

taken, in this interview general question is

asked and check the capability of the applicant.

Employment interview is to be taken and the

applicant who passed all above step is selected

Job is offered to selected applicant through

letter of appointment.

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INTERNAL SOURCES:-

By giving promotion, transfer and also demotion to existing employee.

By rehired retired and retrenched employee.

Dependence and relatives of decreased and disabled employee.

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EXTERNAL SOURCES:-

Press- Advertisement

Educational and training Institutions

Executives search Agencies/ Placement Agencies

Employment exchange

Labor Contractor

Unsolicited Applicant’s/ Casual callers

Employee Recommendation/ Reference

Recruitment at factory gate

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A ).Security: -

The company is very strict in the security so there is one security man at the main

gate. He checks the everyone who is come in the company and no car allowed in

the company without permission of gate security all the employees are given gate

pass and also bus pass. Who has gate is only enter and go out the company.

B ).Canteen: -

There is a well developed canteen in the compound of company. The canteen is

made for the employees and it’s providing the everything at every reasonable price

in the canteen. There is a coupon required for eat anything in the canteen.

C) Transport:-

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The Ashok Leyland has very good transport facility for the readymade product and

raw-material required by the company and its provided also transport facility for

their employees. First of all the employees need to reach at casaba bride e and then

company’s buses drop the employees at different plant whenever they wants to go

at 8’clock in the morning the other company’s vehicle also goes to the plant at

10:00pm. This facility is only for higher cadre employees.

When any employee has half leave and he wants to come they can come back by

the bus at 3o’clock. It is the first shift and buses and other vehicle are ready for

them. There are also for come back at 5o’clock at the end of the second shift.

D) First Aid Medical:-

The Company has its own dispensary to provide a first aid service to the

employees when the employees is injured he is treatment and when workers fall ill

in the company he is treatment properly. If any worker faced accident in the plant

he is taken to the nearest hospital by the cost of the company and all treatment

expenses is given by the company. The company also provides medical facility for

the worker’s family. If any worker’s family member falls ill the company gives

him money and hospital facility.

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Incentives are payment plans which provide encouragement by extra payment over and above regular time rated remuneration for the extra performance. To get desired or targeted result, organization can provide extra remuneration for better performance of employees. In other words, an incentive scheme is a plan or programmers to motive individuals or group performance.

Ashok Leyland and other company also use certain incentives to motivate its employees. Motivation means to force a person and involve him to complete the work in right time and place with help by providing a basic need or special need to worker. Specially Maslow’s need hierarchy used to motivate employees such as basic need, special need, safety need, recognize, identify, self realization.

Extra salary is one such type of incentive which is given to those employees who show sincerity and regularity throughout the Month in their work. Salary is the main factor to motivate employees. Safety need is also used to complete the work.

1).Personality:-

There are certain qualities of good personality such as outlook, communication, nature, presentation, good behavior, positive attitude.

2).Communication:-

Communication is a mature process; we find communication not only between human being but also between in animal. Communication means express words

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and ideas of the one person to other in a way that the person can understood clearly and easily. This can be done in three ways.

3).Verbal:-

Here selection of correct word is most essential factor because verbal

communication means express ideas in word by speaking.

4).Written:-

Written communication means one can present his view form of written point and

points clearly understood by other person. One can add sketches/pictures with text

to support own view and create a clear picture of the idea.

5).Gesture:-3

Gesture communication means one can express idea through body language. Body

language should be perfect and well balanced.

To make communication be perfect – by whom, what, why, when, where & how added while receiving and giving any instruction. It should be maintained to make communication perfect and confusion less and miss-understanding less

6).Nature:-

Nature of a person should a person should be balanced not too rigid or to flexible so as to tackle situation smoothly.

7).Good behavior:-

Behavior of one person doesn’t put others in trouble or should hurt others by means of word or action.

8).Positive attitude & thinking:-

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Positive attitude and thinking of a person will add up to personality.

Promotion:-

Promotion is done to fill up the vacancy when the company fills sometimes some

post. They have two options for fill up the job first is by recruit by external sources

or second is by promoting the old employees .The Company mostly preferred to

promote the employees for the job.

Performance Appraisal:-

The company follows senior recommended appraisal by their senior and they are

increment as per recoded by senior system and not only strutted performance

appraisal system.

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The manager has to express the ideas in such way that it is clear to other and to grasp other’s idea clearly.

Motivation is an effective tool for getting critical tasks completed within specified period or in desired manner to achieve certain goal.

Manager has to take correct decision i.e. what, when, where, why, how a specific job is done based on information and knowledge.

The manager has to synchronized different activities being carried out by different individuals/group/ departments. This synchronizing technique is called co-ordination.

The manager has to develop both his/her self and the subordinates, so that one can take more or extra responsibilities by empowering own subordinates.

If a manager performs above functions i.e. communication, motivation,

decision making, co-ordination, development etc. perfectly then he/she can

be a successful manager even though he/she may not have other skills.

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Meaning & concept:-

Training is the process of increasing the knowledge and skills for doing the

knowledge and skills for doing a particular job. It is an organized procedure by

which people learn knowledge and skills for a definition purpose. The purpose of

training is basically to bridge the gaps between job requirements & present

competence of an employee. Training is aimed at improving the behavior and

performance of a person. It is a never ending or continuous process.

Definition of training:-

“Training is any process by which aptitudes, skills and abilities of employees to

perform specific jobs are increased”.

Training is a short term process utilizing a systematic and organized procedure by which non-managerial personnel learn technical knowledge and skill.

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Training helps the persons to improve their knowledge and skill. This is self

development process. Training based on learns & teach. Training puts its meaning

powerful when it receives a positive and better feedback from trainees. The

complete system of a particular organization or in the department and its outcome

depends upon the

Input Process Output

Input can be raw-material in any form. Input can be a simple data which needs

processing and finally get output.

Need of Training

To improve knowledge & skill.

To develop attitude & behavior.

Reduced cost, accident and mistake.

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Increase efficiency

To increase productivity

Imparting information on new technology and methodology.

To maintain industrial relation.

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Infrastructure for Training

Department

Whatever the things and materials, facility required for imparting training.

Training room/Seminar room.

Board, Chair

OHP (Over Head Project)

VCR, CD Player

Television

Audio deck karaoke facility.

Computer with multimedia facility

Video projector demonstration for technical guidance.

Picture and feature for illustration

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Higher productivity

Better quality of work

Less learning period

Cost reduction

Reduced supervision

Law accident rate

High moral

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When a new employee joins an organization, he is completely a stranger to the people, work place and the work environment. Therefore, he is likely to feel unsecured, shy & nervous. In the absence of information and support there is likely to be anxiety and fear in his mind. So once an employee is selected and placed on an appropriate job, the process of familiarizing him with the job and the organization begins. This process is called induction training or orientation.

Orientation or induction is “the process of receiving and welcoming an employee when he first joins a company and giving him the basic information he needs to settle down quickly and happily and start work.”

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CONCLUSION:-

Finally I considered that this practical at Ashok Leyland

was a great experience. It was very wonderful experience

for me from this project. I learned about the particular

aspects of the private sector.

Ashok Leyland is one of the most leading food processing

companies of the world in future by careful analysis at

this report. It is found that Ashok Leyland is developing

at very fast rate and that days are not far when Ashok

Leyland.

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RECOMMENDATION:-

Ashok Leyland must improve Welfare Activities

because they are on expanding mood.

Ashok Leyland must do more promotion activities.

Improve Marketing

Rules & Regulation must do strictly.

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FINANCE DEPARTMENT

Introduction of financial statements

Meaning

Traits of financial statement

Limitation of financial statements

Use of financial statement

Auditor’s Report

Profit & Loss Account

Balance Sheet

Scheduling Part

Ratio Analysis

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INTRODUCTION OF FINANCIAL STATEMENT :-

The major steps associated with accounting work are four as presented below.

Analysis of each and every transaction to ascertain the amount involved and also the

account to be detailed and credited.

Journalisation, posting to ledger account and the preparation of trial balance

Preparation of financial statement

Analysis and interpretation of financial statements

MEANING:-

“Financial statement are interpreted as those statement which show both the performance and the

financial position. They include balance sheet, income statement, fund statement, or any

supporting statements or other presentation of financial data derived from accounting records.”

In brief it includes the figures in summary form of various assets held by the company and also

its liabilities towards outsides including the owner at the end of the last day of an accounting

year. Income statement or P & L account is a statement which shows in summary form, the

revenue and expenses of a business entity for an accounting year. It shows the sales revenue, cost

of sales, gross profit, operating expenses, operating profit, trading income and expenses, net

income or loss, tax liabilities, etc.

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In brief Profit & Loss Account presents information about the result or outcome of business

operation during an accounting year by matching expenses incurred during an accounting year

against the revenue earned in the last year.

These two basic financial statements are supported by a number of schedules annexure

suplemantary statements, etc. Supplementing the data contained in the balance sheet and the

income statement. Therefore all these in addition to P&L account and Balance Sheet fall within

the scope of financial statement.

TRAITS OF FINANCIAL STATEMENTS:-

Its very well known that the financial statement basically refer to balance sheet and P&L account

or income statement of course this two basic statement are supported by number of schedules.

The figures includes in the financial statement are influenced by three important factors. They

are

Recorded facts

Generally accepted accounting principles

Personal judgements

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1.Recorded Facts :-

It may be remembered here that the preparation of financial statement is made on the basis of

trail balance which in turn is prepared on the basic of balance in various ledger account. As is

known ledger account are prepared by posting journal entries recorded facts here denote the

figures recorded in journal books, ledger account and trail balance. The financial statement are

prepared on the basis of entries in these book of account any figure wchih does not find place in

the book of account. Any figure which does not find place in the book of account is usually not

taken to the financial statement.

2.Generally Accepted Accounting Principles (GAAPs) :-

GAAPs are in the form of guidelines or rules which are to be used as standards for recording

business transaction in the books of account and their fair presentation in the financial statement.

Because the financial statement have to be prepared in conformity with the gaps.

These includes principles, concepts, conventions and assumption. Consequently the figures in the

financial statement are influenced by the GAAPs.

3.Personal Judgements :-

For a few number of important accounting problems accounts find a number of alternative

solution each being considered by the completent authorities as based on sound principles.

So that the clear financial statement reflects a combination of recorded facts and figures. Gaaps

and personal judgement and these three influence the financial data substantially.Therefore

whenever we deal with financial statement. They are to dealts in the light of these three factors.

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USE OF FINANCIAL STATEMENT:-

The following are the important objective of financial statements.

1. Useful Information :-

To provide useful information which can gainfully be utilized to predict, compare and evaluate

the earning capability.

2. Sufficient Information :-

To provide sufficient information which can be utilized by both the internal and the external

parties to predict, compare and evaluate the financial soundness of the entity. They should also

enables the parties to predict, compare and evaluate the potential funds flow in terms of both

amount, time and associated uncertainty.

3.Required Information :-

To provide required information to enable the users of financial statement to evaluate the ability

or performance of managerial personnel to utilize the company’s resources for the purpose of

accomplishes the primary corporate urge.

4. Primary Information :-

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To provide information primarily to those who have limited authority or resources to obtain the

required information.

LIMITATION OF FINANCIAL STATEMENT:-

1.Fulfillment of Statutory Requirements :-

The financial statement which are normally prepared in an absolute manner don’t communicate

much about the profitability, solvency, stability, liquidity, etc. Of the undertaking to the users of

the statements. Because the statement include the figures which don’t speak on their own. Due to

this reason, the financial statement are not assisting either the external parties or the internal

parties to take proper decisions through the very purpose of preparing and presenting these

statement is to assist then in this task.

2. Historical Data :-

Financial statement comprises of only the effects on the items of income statement or balance

sheet or both. In brief of variegated types of transaction business. Financial and investment that

have taken place during an accounting year.

3.Interim Reports :-

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As is known the financial statement are prepared annually. Therefore they are not capable of

furnishing either the comprehensiveor the correct information about the profit, loss, assets,

liability, etc. Because actual profit computed only after winding up of business.

4. Emphasis on only quantitative information :-

Financial statement records dissimilar transaction which can be expressed in terms of money. Of

course, these monetary records or statement are often supplemented by other information.

However, the financial statement exclude the non-monetary facts or attributes which can’t

accurately be expressed in terms of monetary unit when if they are very important.

5. Generally Accepted Accounting Principles :-

Since the preparation of financial statement is governed by the gaaps and since there are number

of diverse accounting solution to each of a few important problems, financial statement do not

depict the reality.

6. Personal Judgement :-

Accounting provides a number of avenues to the personal in charge of preparation of financial

statement to influence the figures.

7. Opportunities for Manipulation :-

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One can find a number of opportunity for manipulated by the management wherin the financial

statement can be prepared in such a way which will suit the wins of management. It is because of

the presence or availability of diverse accounting solution to each of few major items of financial

statement.

To analyse and interpret the data in the financial statement for analyse the financial statement

any one or more method used

Comparative financial statement

Common size measurement

Ratio analysis

To,

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The members of,

Ashok Leyland

We have audited the attached balance sheet of M/S, Ashok Leyland As 31 st March, 2012

and also the Profit & Loss a/c. of the company of the year ended on that date annexed

there to. These financial statements are the responsibility of the company’s management.

Our responsibility is to express an opinion on these financial statements based on our

audit.

We conduct our audit in accordance with the auditing standards generally accepted in

India. Those standards require that we plan and perform the audit to obtain reasonable

assurance about whether the financial statements are free of material misstatement. An

audit includes examining, on a test basis, evidence supporting the amounts and disclosure

in the financial statements. An audit also includes assessing the accounting principle used

and significant estimates made by management, as well as evaluating the overall financial

statement presentation. We believe that our audit provides a reasonable basis for our

opinion.

We report that,

1. We have obtained all the information, which to the best of our knowledge and

belief were necessary for the purpose of our audit.

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2. In our opinion, the company has kept proper books of accounts as required by law

so far, as appear from our examination of these books

3. The balance sheet and profit & loss account dealt with by this report are in

agreement with the books of accounts.

4. In our opinion, the balance sheet and profit & loss account dealt with by this report

comply with the accounting standards referred to in sub section (3c) of section 211

of the Companies Act,1956.

5. On this of written representations received from the directors, as on 31 st march

2011, and taken on record by the Board of Director, we report that the directors is

qualified as on 31st march 2010 from being appointed as a directors in terms of

clause(g) of sub section (1) of section 274 of the Companies Act, 1956.

6. Subject to observation in paragraph above, in our opinion and to the best of our

information and according to the explanation given to us the said accounts give the

information required by the companies Act, 1956, in the manner so required and

give a true & fair view in conformity with the accounting principles generally

accepted in India:

a. In the case of the Balance sheet, of the state of affairs of the company as

31st march 2011.

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b. In the case of the Profit & Loss a/c. of the year ended on that date.

7. As required by The Companies (Auditor’s Report) order, 2003 issued by the

Department of the department of company affairs, Govt. of India in terms of

section 227(4a) of the Companies Act,1956. and on the basis of the books and

records of the company as we considered appropriate and according to the

information and explanation given to us, we

enclose in the Annexure a statement on the matters specified in the paragraphs 4

and 5 of the said Order.

Moreover, Ashok Leyland cares for you and your environment. We believe in

sustainable growth without harming our ecology. Therefore, we manufacture our

products with in-built vacuum system, which protects the product dust.

Place: surat For Shah & Gopani

Associat.

Date: Charted Accountants

Partners.

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PRODUCTION DEPARTEMENT

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Organization Structure & Activities

Types of Product

Types of Row-Material used

Types of Material Handling Equipment

Visit Engineering Unit, Manufacturing Unit

All Activities in Production Department :-

All activities which are carried our in Production Department are as follows

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Marketing Department

Market

(Customer)

Production (Producer)

Sampling for Production

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Sampling for Production Department

Approval to market via Marketing Department

Production Starts

Dispatch to Marketing Department

Dispatch to Customer

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First of all marketing people collect information from market (customer)

which was used for production & also send product to producer for

production of goods.

All activities like first marketing department collect order from customer

and also own created product directly send to production department.

Production department also ask for certain product to marketing people.

In short first marketing people send sample as per sample received in

production unit and after the confirmation received from marketing

department production start.

After production start then all the products dispatch to marketing

department. Marketing department send all the goods to their customer.

And also some product sends as for sample. So that customer knows

about the product and sends order for that order.

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