Organisation Study On Kar Mobiles 2s4k49

ORGANISATION STUDY ON KAR MOBILES LIMITED

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ORGANIZATION STUDY ON Kar mobiles limited Submitted in Partial fulfillment of the requirement for the award of the Degree of Master of Business istration SUBMITTED BY, Name

: Anjali. Gangadharan

Reg. No

: 09P35J0119

Specialization

: HUMAN RESOURCES

Partner Institution

: ACHARYA LEADERSHIP AND RESEARCH INSTITUTE

Under the guidance of INTERNAL GUIDE

EXTERNAL GUIDE

Prof. ANIL KUMAR

Mr. V. MURALIDHAR

Centre for Participatory and Online Programs Bharathiar University Coimbatore – 641 046

(Month & Year)

: DECEMBER 2010


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DECLARATION I hereby declare that this project work titled ORGANIZATION STUDY is a record of Original work done by me under the guidance of Prof. ANIL KUMAR and that this project work has not formed the basis for the award of any Degree / Diploma / Associate ship / Fellowship or similar title to any candidate of any University.

Signature of the candidate Name

: Anjali. Gangadharan

Reg No. : O9P35J0119 Course with Specialization: MBA, (Human resource)

Date :

Signature of the Guide

ACKNOWLEDGEMENT


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I would like to express my gratitude to Acharya Bangalore B-school and my teachers and my guide Prof. ANIL KUMAR also thankful to my external guide Mr. .V. MURALIDHAR, of KAR MOBILES LIMITED (Bangalore) whose direction, assistance, and guidance have been invaluable for the project. I wish to thank staff for their constant .

I particularly like to extend my thanks to my seniors and colleges and friends who ed me during the project.

Anjali. Gangadharan


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The industry is transforming and the boost in demand will see the emergence of several new players in the industry. The vast market for auto components, and the diverse products and


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technology involved ensures a place and a role for many. At the same time, the entry of several global auto mobiles manufacturers. Will bring in more regulation into the industry and see pruning of the spurious market. Among the smaller players in the unorganized segment, this implies moving away from being standalone companies, to entering into either contract manufacturing or being ancillary units. The newly defined rules are specialization, development and delivery that hold the key to success in the auto component industry.

According to the investment commission of India, India is among the most competitive manufacturers of auto components in the world. India is also becoming a global hub for research and development (R&D) .Companies like Daimler Chrysler, Bosch, Suzuki and Johnson controls have set up development centers in India.

Auto manufacturers including GM, Ford, Toyota, etc. as well as auto component manufacturers have set up international purchasing offices (IPOs) in India to source for their global operations.


INDEX

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S.NO

TOPICS

PAGES NO

1

INDUSTRY PROFILE

8

2

INDUSTRY GROWTH

10

3

FOREIGN AQUISITION

13

4

PROSPECTS

14

5

COMPANY PROFILE

16

6

HISTORY

17

7

NATURE OF BUSINESS

19

8

OBJECTIVES OF KAR MOBILES

20

9

VISION

21

10

MISSION

21

11

ORGANIZATION STRUCTURE

22

12

DEPARTMENT DETAILS

25

13

SWOT ANALYSIS

67

14

FINDINGS

72

15

SUGGESTIONS

74

BIBLEOGRAPHY

76

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8


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Indian auto component industry is estimated at US $ 9 billion in 2006. Industry has the resources to manufacture the entire range of auto products required for vehicle manufacturing, approximately 20000 components; here the entry of global manufacturers into India during the 1990’s enabled induction of new technologies new products improved quality and better efficiencies in operations which effectively acted as a catalyst to the local development of the component industry. Estimates by the department of heavy industries, government of there are over 400 large firms who are part of the organized sector and cater largely to original equipment manufacturers (OEM). 10000 firms exist in unorganized sector that operates in a tier format. Firms in this segment operate in low technology products and cater to tier 1 and tier 2 suppliers and also serve the replacement market. Around 4 % of the company operating in the auto component segment cater to 80 % of the demand emanating from (OEM’’s). This auto component industry manufacturer’s components fall into six broad product categories:

1.

Engine parts = (piston ,piston rings , engine valves , fuel pumps ,carburetors and bimetal bearings )

2. Electrical parts =(starter motors ,generators and spark plugs) 3. Transmission & steering = (gears, steering gears, & systems, wheels, clutch plate & disc). 4. Suspension & braking = (leaf springs, shock absorbers, brake assembly & facing). 5. Equipments = (head light ,& dashboard instruments) 6. Others = (sheet – metal parts, pressure disc castings).


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Auto components product segments

Engine parts 23%

Others 36%

Electrical parts 7%

Steering parts 23%

Equipments 8 % Suspension and braking parts 11%

Revolutions Automobile revolution began with the appearance of automobile manufacturing, about the year 1890. By that time Europeans and North Americans possessed the technology required to produce and successfully operate a mechanically powered road vehicles. A taste & a demand for such a device could than be created building not only on two generations of public acceptance of railways , but also on the widespread interest in a more recent mechanical device ,the bicycle .


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The opening stages of automobiles production and marketing required nothing new in the form of business organization, factory operation, or selling methods. Nor did it require large sums of capital of large numbers of workers .yet, ultimately the growth of this industry would bring amazing changes in all these areas. Revolutions usually do not announce themselves at their first manifestations.

Industry Growth The production of auto ancillaries was estimated at us $10 billion in 2005-2006 and as been growing at a robust 20 % per annum, since 2000. Exports of auto components have been strong growing at 24% per annum since 2000.This growth in exports is sustained for another 5 yrs will see India’s auto components exports will touch us $ 5 billion by 2011 from us $ 2billion at present.

Till the 1990’s the auto component industry was solely dependent on the domestic automobiles industry to drive the demand for ancillary products. This composition of the market how ever is undergoing radical changes with global outsourcing gaining momentum. In recent times, exports has emerged as a significant driver of growth and the demand emanating from global OEM’s and tier 1 manufacturers has opened now opportunities for the auto component industry in India .At the same time a bright out look for the domestic automobiles industry also offers significant growth potential given the fast rising Income levels with a rapidly growing middle and high income consumers.

Investments

Since 2000 the auto component industry was recorded an investment level of Rs 18 billion and attracted us $ 530 million in of foreign direct investment.


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Investments in this sector have been growing at 14 % per yrs. In 2005- 06, investments touched us $ 4.4 billion, and are expected to grow significantly in future. The investment commission set a target of attracting foreign investment worth us $ 5 billion for the next 5 yrs to increase India’s share in the global auto component market from the amount of FDI currently coming into the industry. The changing perception of global auto makers is however fast altering the scenario. With less than 1 % share in the global market, India has tremendous potential to emerge as a supply base. This changing business scenario’s is leading to an inevitable out consolidation with in the industry .The take over of Kar mobiles by RANE Engine and of Gero auto by Uma precision is few instances.

How ever, such mergers & take over’s will be few and far in between in the auto components industry unlike the churn out anticipated in other emerging industries – the principle factor being the vastness of the market and the range of products that need to be delivered .Rather than domestic consolidation, the general trend at present is for the large auto component manufacturers to establish a global presence. Top auto components manufacturers have already set up base in the global markets, especially in Europe. Overall there have already been 16 acquisitions; with 6 made in 2005.The industry is the third highest, among the Indian industry after IT and Pharma, in acquiring oversea assets. These acquisitions have largely been in Europe and the USA. This trend has been possible as the auto ancillary industries in these countries have been collapsing thus making it affordable to acquire these companies. Nevertheless, this will provide a base for Indian companies to access the European &American markets. Indian auto component companies are also setting up bases in other emerging economies, who are potential competitors, for instance, Sundaram fasteners green field facility in Zhejiang and Bharat forge’s t venture with the Chinese automotives major FAW Corporation. Another auto component manufacturer’s with pla ns to enter china is PMP components which intend to set up a sourcing base to establish it as a low cost supplier.


Foreign acquisitions by Indian companies Indian co Bhart forge

Acquired Carl Dan peddling laves Federal forges imatra kilsta ab CDP alumni umtechnik Scottish stampings ltd

Mother son Sumi

Country Sweden Scotland

woco group G&S kunststofftech

Gmbh Armtek Auto

GWK New smith Jones Inc Zelter

Sundaram

Bleisthal productions

Fasteners

Gmbh Cramlington forge CDP Gmph

EL forges

Shakespeare forgings

TVS Autolec

RBI Auto parts SND BHD

UK USA

UK UK Malaysia

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


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global and domestic automobiles manufacturers promises the emergence of India as a global and domestic automobiles manufacturer and promises the emergence of India as a global hub for auto components.

The industry is transforming and the boost in demand will see the emergence of several new players in the industry .The vast market for auto components and the diverse products and technology involved ensures a place and role for many.


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Kar mobiles limited manufacturer’s valves for internal combustion engines. The company manufacturer’s valve of all sizes and ranges used in various vehicles like motorcycles , cars, trucks, railway engines , defense tanks , generator sets and marine engines.


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HISTORY

Kar valves limited was been out of an electric supply under taking in the old Maharaja’s state of cochin under the name of cochin state power & light corporation limited .This company was started in the year 1936 & was engaged in distribution of electricity .In 1971 this business was nationalized so the company received compensation from the government and the share holders decided to invest in a new business activity. The company was named as “Kar valves limited” and incorporated in the year 1972 under the Indian companies Act with a licensed capacity of 1.5 million valves per annum .Mr.LL.narayan laid the foundation stone on 30 th Aug 1973 and established as private sector organization and started as a manufacturing unit. Sri. V.p Aghoram was appointed as the managing director of the company in 1972. The company commenced its commercial production in the year 1975 and the first invoice was made on 12-31975 to m/s convest private ltd, Delhi. Large valves for diesel loco applications and export came into focus .This success led the company to expend its licensed capacity from 1.5 millions to 5 millions per annum .In 1981 , the company set up a 100% export oriented unit at Tumkur on 08.9.1983 the name changed as Kar mobiles ltd.

In the year 1997 the company entered into technical collaboration with TRW Inc; USA to upgrade its product and process technology.

Rane group of companies:

 Inception in the year 1929as a trading house.


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 Strategic technical alliance.  Access to best technologies.  Group turnover of 273 million usd for the year 2008-09.  Serves a variety of industry segments: enger cars, multi utility.

 Vehicles, light commercials vehicles, medium & heavy commercial vehicles.  Farm tractors, three wheelers, two wheelers, stationery engines.

Why the name Kar mobiles

Some interpreted that since the factory is situated in Karnataka the first 3 letters were taken. Later there were other assumptions like as it deals with automobiles so this names suits better than the others, but this names stand for a different meaning all together like;

Kar mobiles stand for:

K = knowledge A= application R= reliability M=motivation O= opportunity B= brilliance I= innovation L=leadership E= excellence


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S= service

Nature of the business carried

Kar mobiles ltd manufacturer’s valves for all internal combustion engines. The company is one of the diesel oriented unit which supplies valve for all engines both petrol and diesel and diesel and is fully equipped to the developing market needs .A valve is a product Rarely noticed by the average person, yet it plays an important role in the quality of our life. Valves are made from chrome silicon, alloy steel and exhaust from chrome – nickel silicon, alloy steel to operate under high temperature and high stress conditions. The valves commonly used in piping systems are gate valves, usually operated closed or wide open and seldom used for throttling globe valves frequently fitted with a renewable disk and adaptable throttling operations check valves for automatically limiting flow in piping system.

Background and inception of the company It is the second largest manufacturers of valves for internal combustion engines in India. It is a public ltd company .KML was established in 1974 currently it has two manufacturing plants at Bangalore and other in Tumkur with a combined capacity of 6.5 million valves per annum.KML has a technical collaboration with m/s TRW inc. USA for of product and process technologies .KML is QS 9000 and ISO 14001- certified company. Current turnover of KML is about Rs 833.90(million) with employee strength of about 998. Exports constitute 50% of turnover. Kar mobiles, it is the first vendor from India approved by General Motors electromotive division U.S.A. Kar mobiles enhanced preferred supplier to OEM’s in India and abroad.KML specializes in supply of valves to manufacturers of large engines like:

 M.A.N  Mirrless black stone  Pielstick


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 Ruston  Wartsila diesel In India approx 26 million engine are sold every year and the major contribution are REVL,KML and Sriram .Kar mobiles company is one of the domestic supplier of valves for all engines both petrol and diesel driven and is fully equipped to its developing market needs. It works on product and route card concept of production. The product KML is presently being exported to U.K, U.S.A, and Australia.

Kar mobiles ltd Bangalore The Bangalore based Kar mobiles (KML) set up its factory to manufacture valve for internal combustion engines in 1973- 74. Commercial production commenced in 1974. In 1978-79, it implemented a project to expand its capacity from 1.5 million to 3 million per annum which was again increased to 5 million per annum in 1980- 81.Having successfully established itself in the domestic market as a quality manufacture of valves for internal combustion engines, it entered the export market in 1977.Its first customer was Lister petter U.K with whom it started business in 1977. Currently it enjoys nearly 90 % of Lister pitter’s business. It started expanding its customer network In the U.K and added customer like Kelvin diesel, Villars, Gardner sons etc & started exporting valve to and .

Objectives of Kar mobiles The company in its continuous quest for excellence seeks new frontiers delivering best of breed products that meet global quality standard and adopts innovative techniques to further improve customer service. 1. To be punctual to work to reduce absenteeism, not wasting time.

2. To be punctual at work. 3. Sorting tools and documents at right place in a clean way. 4. Helping others in work and other aspects.


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5. Work efficiently or effectively. 6. Think constructively. 7. Act friendly. 8. Risk cautiously. 9. Dress nicely. 10. Talk sensibly. 11. Invest prudently. 12. Judge wisely. 13. Maintaining cleanliness in work. 14. Increasing productivity.

Vision The vision of Kar mobiles ltd is to achieve 2000 million sales by 2013 by strengthening global presence in large engine valve market. To increase our global presence in medium & large engine valve market.

Mission The mission of Kar mobiles ltd is to provide:  Superior products and service to customers and maintain market leadership.

 Evolve as an institution that serves the best interest of all stake holders.  Pursue excellence through TQM.  Ensure the high standards of ethics and integrity in all actions.

Quality policy

Kar mobiles ltd is committed to comply with ISO/TS 16949 system requirement and improve customer satisfaction by:-


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1. Identifying & fulfilling all requirements of the clients /customers, 2. Complying with all applicable statutory and regulatory requirements. 3. Providing training to practice TQM and achieve continual improvement in all areas.

Internal control system and risk management The company continues to engage the service of an independent agency to carry out internal audit of all the company locations .The audit committee of the board approves the audit plan in the beginning of the financial year in consultation with the internal auditors, the statutory auditors and the operating management .The findings of the internal auditors are placed before the audit committee for review. The response of the operating management and counter measures proposed are discussed at the audit committee meetings. The process not only seeks to ensure the reliability of control systems and compliances with laws and regulations but also covers resources utilization and system efficacy. Risk management is an integral part of the business process. The company has mapped the risks at the business processes and enterprise levels and has evolved a risk management frame work. Metigative measures have been put in place in respect of these risks. These would be periodically reviewed by the board of directors.


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The company follows line and staff organization. The executive vice chairman who is nominated by the board of directors, who takes decisions, regarding policy making and decisions in other important fields, manages the company .The company is headed by Chairman under him comes the President who in turn reports to the chairman .

Organization chart – corporate


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Business head

Head marketing

Head finance

Plant head P1&TQC

Head IS &MRP

Head materials

Head engineering

Plant head P2

Secretari es

Head corp.HR


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Various functioning departments of Kar mobile ltd:

1. Marketing. 2. Finance 3. Human resources. 4. Information technology. 5. Productions & planning & control 1. Quality assurance. 2. Maintenance 6. Material 7. Engineering

The main departments in Kar mobiles are marketing department, Finance department, Materials department, Productions department, Information’s systems and Personal departments. The head of the department heads each department. The HOD directly reports to the president


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Marketing department: =The Kar mobiles ltd. has three types of customers and there are separate marketing heads for these customers.

Structure of marketing department

HOD – MAARKETING


OEM marketing

Replacement marketing

Rail and defense

STU’S and trading

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Export s

OEM and replacemen t

The HOD of marketing, reports directly to the president. Below him there are three managers who are in charge of OEM, replacements and exports. There are managers and executives below the three managers of respective departments. Original equipment manufacturers marketing or OEM markets deals with customers like TATA, MARUTHI, and MAHINDRA etc. Replacements marketing deals with the dealers of KML. Exports fully take care of the exports and foreign customers of the company. The company supplies:

1. New product to existing customers. 2. Existing products to new customers. 3. New products to new customers.

The functioning of the marketing departments of KML takes place as follows:

The customers give a drawing of a particular product to the company. The drawing is then forwarded to the engineering departments. They will decide the process and cycle time for the product .Then it is send to the costing department where the cost of product is fixed. This will be


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forwarded to marketing department to fix the profit margin of the product .The president, HOD marketing and respective functional heads will be the final decision makers. After that a quote is given to the customer. And if it satisfies the customer they will release a purchase order for the product. The company participate in various international exhibitions, meetings people at higher levels by DGM, various magazines are the different Medias used by KML to market the company.

2006-07

Sales valves

670,354

2007-08

2008-09

% Increase

% Increase

2007-08

2008-09

-

-

670,354

855,514

Volume increase

35,210

(46,088)

5.25

(5.39)

Price

149,950

126,130

22.37

14.74

855,514

955,556

Increase /(decrease) Total sales

670,354

smj 1. Volume increase 2. Sales valves. 3. Price increase/decrease


2006-

2007-

200809

Country wise export valve

Countries USA

2006-07 171210

2007-08 251213

2008-09 290955

UK

21224

31378

22278

SINGA/MALAYSIA/HONG 826

0

364

92910

122009

83157

UAE

9296

6802

10735

THAILAND

458

757

3159

Others

37264

45820

59738

Total

333,188

457,979

470,386

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2006-07(24%) 2008-09(41%)

2007- 08(35%)

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Clients / customers:

DOMESTIC

OVERSEAS

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ORGANISATION STUDY ON KAR MOBILES LIMITED Ashok Leyland

GM EMD,USA

Bajaj Tempo Ltd

HATZ,

Bharat Earth Movers Ltd

Lister Petter Ltd, U.K

Cummins India Ltd

Lombardi SRL, Italy

Diesel Locomotive Works

Mirrless Blackstone, U.K

Escorts Tractors Ltd

Steyr, China.

L&T John Deere

VEGE,

Mahindra& Mahindra Ltd

Wiscon, U.S.A

Maruti Udyog Ltd

Federal mogul, U.S.A

Same greaves Ltd Tata Engg.&Locomotives Co .Ltd VST Tillers & Tractors Ltd

Strategic goals By 2008- 2013:-

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ORGANISATION STUDY ON KAR MOBILES LIMITED SG1 -Achieve sales 15% CAGIR SG2- Achieve 15% PBT SG3- Increase Export Turnover to 60% of sales SG4- Reduce internal rejections

Premachining < 1 % Machining

< 1000 PPM

Strategic Initiatives (SI)

SI 1 Enhance NPD Capability SI 2 Reduce Cost SI 3 Improve Quality and delivery performance SI 4 Enlarge Export Business SI 5 Challenge Deming Prize

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Finance departments: - Finance who reports directly to the president there are two departments under finance department. These departments are headed by Sr. Asst – costing and senior manager – s. Under these there are executives for the consent works.

Overall Finance department structure

Head finance corporate

Head finance plant

In charge payroll &treasury

In charge excise & customs

In charge bills payable

In charge costing TA bills

In charge society

In charge fitment coupons


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The finance department structure in detail:

Business head

Head corp. finance

Head finance P1

In charge bills payable &TDS

In charge bills receivable & reconciliation

The main functions of the department are to:

 Daily routine ing.  Preparation of statutory compliance.  Issue of payment.  Monthly P&L.  Review with AOP.  Quarterly preparation of P&L.

In charge liaison


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 Quarterly audit as per SEB and published in the results in newspapers.  Preparation of P&L and balance sheet and arrange for yearly audit.  Replying for internal audit queries.  Filing of IT returns. When the raw materials are purchased the stores department will hand over the Chelan and bill along with materials receipt number to the finance department. The bill will be verified with purchase order and if there is any difference a debit note/ credit note will be raised the payment will be released to the suppliers on or after the due date. For meeting expenses of various departments there is an expense format and it has to be filed and get signed by HOD then forwarded to finance department where it is verified and sends to cashier for release of cash.

ing policies: During the year , company has exercised the option to adjust to the cost of fixed assets / foreign currency monetary items translation difference as contemplated in the amended ing Standard 11 in respect of exchange differences relating to long term monetary items. Impacts on the s for the year due to the change are NIL.

Human resources department:Human resource development: - Training programs are conducted throughout the year for employees on

ORGANISATION STUDY ON KAR MOBILES LIMITED •

Attitudinal changes.

•

Skills development.

•

Quality control.

•

Cost consciousness.

•

Behavioral changes.

Purpose :-To achieve attendance management and welfare. Roles: •

To maintain time office activities.

•

To provide temporary operators/ apprentices as per plan.

•

Ensure employees relations.

•

To comply with all legal compliances.

•

To handle the operators performance appraisal.

Allowances /benefits to workmen / employees

 Dearness allowances  House rate allowances

 Conveyance allowances  Hazard allowances

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ORGANISATION STUDY ON KAR MOBILES LIMITED  Special allowances  Heat allowances  Helper allowances  Staff allowances  Lunch allowances  Attendance allowances  Leave travel allowances  Uniform allowances  Stitching allowances  Washing allowances  Canteen allowances  Children education allowances  Leave facilities  National and festival holidays  Festival advance  Salary advance  Educational facilities  Annual award for attendance  Man of the year award  Long service award

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 Annual gift for production  Medical reimbursement  Incentive scheme  Promotion policy  Death relief fund  Meritorious award  Accident benefit  Incentive for family planning

 Retirement benefit

Dearness allowances It has been agreed continue the existing FDA of Rs 1450 for the settlement period without any change or modification per month corresponding to cost of living index of 2300 points which will be treated as irreducible dearness allowance the existing personal pay (i.e. 2000 + 1550) will continue for those workmen/ employees confirmed on or before 30.06.1996. Workmen or employees who confirmed after 1.7.1996 will be entitled for personal pay of Rs 1550 /- only. The variable dearness will be paid at the neutralization rate of Rs. 2.50 per point from 2301 points.

Shift allowances


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Shift allowances be paid in the respective shifts provided by the workmen have worked for a minimum period of half a day ( 3 hours 45 min) in the said shift. Shift allowances payable will be as follows: For shift commencing at 2.00p.m to 10.00 p.m Rs 7 / per shift worked. For shifting commencing at 10.00 p.m to 6.00a.m Rs 22/ per shift worked. Shift allowances will not be taken in to for the purpose of calculating provident fund, gratuity and bonus.

Staff Total number of employees – 770 Management staff – 138 Temporary operators – 205 Apprentices – 107 Diploma operators- 52 Contract lab our – 90 Operators- 178

Staff allowances: Staff allowances Rs. 4.00 is not taken into for the.

Eligibility conditions of employees:-


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 Regular attendance with late coming of maximum of 3 occasions not exceeding cumulative total of 20 minutes in a month.  Leave taken even with prior permission such as authorized leave, special leave etc, are

not eligible.

Uniform allowances:All confirmed employees covered by this settlement would be provided with uniforms of good quality, detailed as below: Workmen/ staff employees: - Providing 3 sets of uniform per annum. Canteen: - Canteen facility provided on concession – and mutually agreed to deducted Rs .1/- per day of attendance of employees from their salary.

Employment opportunity It is agreed that in the matter of fresh recruitment the management will have absolute right to make recruitments from whatever source it may deem fit. However , due regard will be given to the application of one direct dependent (son /daughter )of this existing workmen / deceased workmen ,provided subject to availability of vacancy and the candidate satisfying all the requirements for the job and qualification as laid down by the management. Further no contemporaries will be employed concurrently at any point of time.

Leave facilities: Leave facilities are:  Earned leave.  Casual leave.  Sick leave.


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Earned leave: - It can be availed at the rate of 1 day each on 7 occasions / 2 days each on 3 occasions in calendar year, with at least one day’s prior notice. Casual leave:- Casual leave entertainment will be 9 days per annum who have completed 6 months continuous service in a year. Sick leave: - Sick leave entitlement for non – ESI covered employees will be 7 days per year and 4 days special sick leave per year will be granted to all the employees.

Awards LONG SERVICE AWARDS SERVICE 10 years continuous service 15 years continuous service 20 years continuous service 25 years continuous service 30 years continuous service 35 years continuous service

AWARD Titan watch with service certificate 140gms silver plate with service certificate 4gmsgold coin with service certificate 8 grams gold coin with service certificate 10 grams gold coin with service certificate 12grams gold coin with service certificate

Promotion policy Employees / unionized staff will continue to be considered for promotion as per the existing promotion policy. Fitment in the new grade consequent on promotion will be subject to the conditioned that the promoted workman / employees do not cross the senior employees in the new grade, except for employees who have got converted to staff/ reclassified .In such cases, the existing practice of maintain the wage parity between the junior and senior workman / employees


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will continue till disparity is rectified. In case of promotion, the decision and placement will be at the discretion of the management. Management has also informed the union it will come out with new promotion policy within 3 months from date of g of this settlement for discussion and conclusion.

Maintenance of discipline at the workplace

 The workmen and the union have agreed to work for the shift hours excluding lunch break.  The workman shall not stop their machines in between the working hours.

 They honestly and sincerely work for the entire shift hours without wasting time.  Workmen shall also work any where within the line or any line wherever he is deployed by the supervisor.  Workmen shall adhere to multi skills and multi machines manning  The workmen shall not get out of the factory premises without prior notice.  Workmen shall not loiter within the factory premises unnecessarily and waste their time.  Operators shall set their machines.  Operators shall do tool grinding / forming, when ever necessary supervisors will also assist.  Operators have to do regular optimal checks, TPM/KAIZEN .Suggestion scheme multi machines manning, 5s and safety.

Retirement benefit


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It has been agreed to hand over a gift cheque of Rs. 6000/- to the employee who retires from the services of the company.

Human resources process and various policies

There are various policies and process followed in Kar mobiles, they are as follows; 

Man power planning.



Sourcing of candidates.



Recruitment &selection.



Offer &appointment.



ing formalities.



Induction.



Probation.



Special situations.



Promotions /increment.



Resignation.



Retirement.



Transfer.



Relocation for new recruits.

ORGANISATION STUDY ON KAR MOBILES LIMITED 

Compensation and benefits.



Business & travel rules.

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In detail the functions of various topics in the following:Man power planning: - Creation of new position at all levels is done & approved by CHRM/VC. Sourcing of candidates: - It will be done first internally for all position with in company / group. Services of only approved recruitment consultants will be used for all recruitment. Recruitment & selection: - Women candidates will be considered on par with male candidates for all positions. -

Relatives of employees will not be employed in the same company.

-

Internal candidates will be treated on par with external candidates for all positions.

ing formalities: - A comprehensive database will be created for all new employees and will be updated regularly as it is essential for all istrative requirements. Induction: - Structural orientation program me will be organized for all new employees. Probation: - Here probation period is for 6 months for all the new employees. Promotions / increments: - All promotions will be subject to vacancies existing in organization. Resignation: - Exist interviews will be conducted in respect of all employees initiated separation. Retirement: - I t will be with the prior specific approval of CHRM/ VC and as per established procedure in exceptional cases. Compensation & benefits: - It will comply with the laws of the land. Higher education: - It is permitted in the organization if any employee is interested to go for higher education but issue of NOC is required for pursuing.


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Various steps followed in the various processes are as follows Recruitment & selection Standard: - Recruitment & selection practices will be consistent fair transparent merit based and stand up to objective external scrutiny. Process:  Understand job requirements.  Shortlist candidates.  Schedule interview.  Conduct interview.

Offer and appointment

Standard: - As this represent the final and most critical stage of selection. Objective information will be obtained through references from external sources to confirm internal evaluation of candidates fit to the job. Process: Reference checks.  Medical tests.  Verification of certificates.


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 Letter of appointment.

Induction Standard: - It will be such as to instill commitment, enable new employee to network with colleagues and settle down quickly. Process: Induction.  Briefing and orientation.  Induction kit.  Mentor / guide.

Resignation Standard: - Process will be in place to collect, analyze and constructively use the feed back obtained from employees at the time of separation.

Process: Notice period.  Treatment of employees, who leave without giving notice.  Exit interviews.  Leaving formalities.


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 Full & final settlement.  Service certificate.  Withdrawal of email ID

Retirement Standard: - It is a major shift in an employee’s professional life. Process: Retirement.  Notice of retirement.  Token of appreciation.  Counseling & assistance.  Exit interview.  Leaving formalities.

Union There is a union functioning in the organization with which every 4 years they do settlement for this they conduct meetings with the management . Even if they have any disagreement with any of the employees or operators/ workers/ with management policies they solve these issues when these meetings happen.


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Generally these unions are formed for the over all development and to take care of the welfare activities of the employees (workers) here management staffs are not included. Here no as such counseling department is functioning under HR head but they handle all the problems during meeting with the union.

Various other tools used in Kar mobiles are as follows:-

 They have a suggestion committee.  QC (quality control) circles.  QC stories.  QIT ( idea generation which is based on team performance )  Every year team performance assessment systems are their.

IT department: - This is one of the main departments of KER mobile ltd. Without which the functioning of all the other departments may come to stand still. This department helps in various functions. The structure of IT department is as follows;

IT department structure:

President

Senior manager In charge IT


The various applications used here are as follows  SAP  OFFICE 2002  OFFICE 2007  OFFICE 2010  ADOBE READER

Various operating systems are:  SAP

 WINDOWS XP  WINDOWS VISTA

Functions performed here are:

Functions

Data base server

AD server

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Payrol l

TD S

Mis

MR P

Common portal (Collection of data of all s)

Functions in various departments s Engineering Human resources Is department Electrical maintenance Purchase department NPD (New product development) PPC (production planning & control) Production Quality Sales (marketing)

IS helps in various cases like:  Time saving

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Semantic back up (For storage purpose of data)

ORGANISATION STUDY ON KAR MOBILES LIMITED  Fires  Flexibility creation  Data storage  Cost of reduction to an extend  Safety Company’s centralized data center is at Chennai. The various SAP services are: Email internet Isms Facility management Material management Sales and distribution planning Production planning Quality management Plant maintenance Finance and costing HR payroll For marketing coupon monitoring system for sales promotion Databases of employees are maintained At company level each person as a head called CHAMPIONS

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SAP- logical storage location etc

Production, planning & control Production process: It is used to determine production levels for product groups. This is based on sales forecasting and is used to raise or lower inventories, stabilize production & planning and allow the launching of new products on to the manufacturers range of products. Process planning determines the sequences of operations required in the manufacture of a product or its components. Estimating is to determine prices and predicting costs including manufacturing lead times and production costs. Production costs include materials, labor and general overhead costs needed to manufacture the end product. The data for this is supplied from purchase files, route sheets and s records.

Production department structure President

Senior managerengineering

Manager s

Engineers

Executiv es


Line supervisors

Operators / workers

The main functions of these departments are as follows: Design and development of valves according to the requirement of the customer.  Optimization to aid in meeting customer expectation / requirements.  Design and development of samples and submission in time.  New process development change in Engineering.  Process improvements, documentation of process, cost inputs for plant 1.  Carry out process improvements for quality improvements and cost reduction.

 carry out design reviews to enhance operational

Product profiles:Range: -More than 600 types of valves developed over a wide range of applications. Product: - KML specializes in supply of valve to manufacturers of large engines like

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 M.A.N  Mirrless Blackstone  Pielstick  Ruston  Wartsila diesel Product classification Engine parts

Piston , piston rings, engine valves, fuel

Electrical parts

pumps, carburetors, and bimetal bearings Steering gearings gear and systems, wheel,

Transmission and steering

clutch plate and disc. Gears, steering gears and systems, wheel ,

Suspension and braking

clutch plate and disc Leaf springs, shock absorbers , brake assembly

Equipment

and facings Head light and dashboard instruments

Others

Sheet –metal parts, pressure disc castings.

The range of products manufactured, with each broad product segment having different market structure and technology, has negated any possible concentration of the market in a few hands. The market is so large and diverse that a large number of players can be absorbed to accommodate buyer needs. However, there are a selected few companies that have integrated their operations across the value chain. The key to competing in this industry is though specialization by product –type, and integrating operations across the related area of specialization. The regional base of auto components manufacturers is mostly concentrated in the west, north and south of India. The regional concentration of auto component manufacturers has been


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dictated by the emergence of auto mobile manufacturers in these regions. The setup of Tata motors, Bajaj, Mahindra & Mahindra and TVS in the 1950s & 1960s laid the foundation for the auto component manufacturers in the west and south, whilst the entry of Maruti during the 1980s created the base in the north.

Valve:-

It is an ancillary unit. It is used in internal combustion engine. An engine holds a pair of valves, one inlet and one exhaust. Every four stroke engine whether petrol or diesel, one requires internal combustion called IC valves. In any engine per cylinder two valves to be there, one for itting the combustible charge into cylinder knows as the inlet valve and the other to dispel the burnt gases to the atmosphere through the silencer knows as exhaust valve. The valve is alloyed steel forging, the most usual alloying element being Nickel, Cobalt, Chromium and Silicon. Some of the most popular valve steels are as follows:1. EN-52 2. FN-59 3. EN-51 etc.

Are martens tic valve steel and 21-4N, 21-N etc, are austenitic valve steels.


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Valves material:Low carbon Martens tic valve steel Austenitic valve steel Stainless steel Nickel alloys Surface management Hard chrome plated Tuff tried Phosphate Production process: - The company manufacturers valve only after receiving the orders from its customers. The production departments start its work when it receives order from marketing department. According to customer requirement engineering department make sketch or model with measurements. After customer satisfaction they fix the deal and the process begins in material departments.


Bar cut

De bur

Bar grinding

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End touch

Forging Heat treatment Straighteni ng

Heartreatment

Oil treatment

Machine shop

Bar cut: At first, the raw materials are taken from the stores, in bar cut process they cut according to customer’s requirement. It includes thickness of the product, size, length etc.


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De bur process: Bar cut process level some extra edges that are removed by De bur process.

Bar grinding: In BG process an angle is made on the top of the bar.

End touch: Next process includes the finishing of both the surfaces; this process is called END TOUCH.

Forging process: In FG process a high voltage will be applied to one end of the bar. Due to voltage and force, a bulb will be formed at this end and it will be pressed to give required share.

Heating treatment: After FG process valve will be given heating for hardening tempering.

Oiling treatment: Then OT will be applied for softening and increasing the durability of valve.

Straightening: In heating process valve becomes bend due to distortion but vehicles require only straight valve so for becoming straight the valve, straightening process will be applied. Above all procedure is done in forge shop. After forge shop valve will go into the machine shop for final finishing, cleaning, polishing, marking, correct measurement and packing.

Product development facilities: Significant portion of the group’s turnover invested in research development simulation techniques and exhaustive testing mechanisms implemented regarded as the industry standards.


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Bar to bar process (BIMETAL):- Bimetal is used for increasing the length of the valve. If any vehicle requires a long length then starting material of valve will be high alloy and ending material will be of long alloy. The main aim of this process is to reduce the cost of valve; The following will be explained with the help of a flow chart which is as follows Head pin

Bar cut

Stem pin

Bar cut


Debur

Debur

Bar grinding

Bar grinding

End touch

End touch Friction welding Bar grinding Wet end

Deep de bur

Quality assurance department:Structure of the department:

Plant 1

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Head plant Product audit

Gauge

Materials lab

Process audit

Raw material

Customer complaints

Quality objectives:Company level data, customer requirements and business requirements are the basis for finalizing quality objectives. A CROSS FUNCTIONAL TEAM consist of from every department will discuss based on the various inputs, company quality policy and finalizing the year objective, during every financial year – end.

7 QC TOOLS ADOPTED BY THE ORGANIZATIONFOR CONTROLLING QUALITY OF THEIR PRODUCT Pareto chart Cause and effect diagram Histogram Stratification Scatter diagram


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Control charts Check sheets

Quality assurance facilities:Hardness testers – Rockwell & Vickers Automatic specimen polishing machine Spectrophotometer Metallurgical microscope Tensile testers Micro profile projectors Tool- maker’s microscopes Roundness testers Surface roughness testers Dial calibration testers Cylindricity testers Magnetic particle inspection Ultrasonic testers Hardness testers

Maintenance department: This department also comes under production head only. Here for assets there is civil maintenance .There are various activities performed here. Now the structure of maintenance department is as follows;

Maintenance department structure:-


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Plant head Plant head maintenance

Utilitie

Shop in charge

s

Forge shop

Machine shop

Department is headed by a manger. In KML they follow both breakdown and predictive maintenance these are time based maintenance and condition based maintenance. In KML they do sewage treatment where in the segregate the chemicals with water and these waters are reused for gardening purpose. The max breakdown so far recorded is 4 hrs and above and they are trying to the keep the machinery up time by 98%.

Costs incurred are: 1. Repair and maintenance cost 2. Reconditioning of old machines


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3. Machinery spares and services 4. New machine procurement Preventive maintenance is based on manufacturer’s recommendation and also based on past experience. OEE (overall equipment efficiency) are calculated losses can be predicted.

Procedures for tool maintenance system are: The objective of this procedure is 1. To maintain tooling’s properly 2. To the production to achieve the targets on time 3. To provide valuable service to the production department. Purchases /Materials department: This is one of the departments in Kar mobiles ltd. This department deals with the overall dealings of raw materials in the organization.

Structure of purchase department

President

Purchase manager


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Corporate head

Plant 1

Plant 2

Purcha ses Consumable stores

Purcha se Consumable stores

Raw materials Sub contracting

Raw materials Sub contracting

The purchase department or materials department is headed by senior manager – materials who reports to the president. There are two plants (plant 1 and plant 2).There are also four departments under materials department on each plants. Senior executives are responsible for each activity. The purchase department is in – charge of all purchases made by the company.


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Head of the concerned department will inform purchase department about the requirements. It is in charge for the purchases of raw materials for the manufacturing of valves.

They will be given a three month prior intend by the production, planning and control department which includes the require quantity of raw material and days with in which it as to be available. Then the department will place the purchase requisition to the suppliers. When the goods are received it is given a GR number (goods receipt number) and is transferred to stores. The will raise the indent in the system about the quantity required and given reservation number for the required raw materials. Based on the order the materials will be issued. The company has a storage capacity of 7000 items in their department. The lead time for imported materials is 6 months and materials reorder level is calculated using SAP. Approximately there will be 80- 90 tons of order is placed. Materials are released based on first – in – first out basis.

Major suppliers are:  Star ware India ltd.  Kalyani carpenters.  Jigar marketing pvt ltd.  Hall mark steel pvt ltd.  Carpenter technology (us).  Thyssen Krupp ().  Mitsui (Japan).  In canal pvt ltd.


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The stores consist of direct materials i.e. raw materials and indirect materials which consist of consumables, mechanical and electrical spares.

Engineering department:

Engineering department in KAR

mobiles as various functions. This is one particular department which takes care of the whole technical functions of the organization. It is headed by president followed by many other functional heads to carry out their activities .Now the structure of engineering department is as follows;

Structure of engineering department


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Preside nt Head engineering

In charge ME forge shop

In charge ME Machine shop

In charge capex and machine build projects

In charge Machine building and tryouts mechanical

In charge tooling

In charge design and drafting

In charge new product development In charge tool room

In charge tool crib design & drafting


Design & dep’t

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Testing capabilities The main responsibilities of this department are as follows:-

1. Translation of customer drawing into plan. 2. Assess capacity of the machine. 3. New product development. 4. To procure equipments/ machinery from local/overseas. 5. To handle the equipments. 6. Method of manufacturing. 7. Machine building. 8. Deg and drafting of tools. 9. Capital expenditure.

Based on the customer requirements the engineering department translates the customer drawing in to plan and they try to assess the present capacity and method of manufacturing and try to procure the required equipment and design the dice which are designed in – house/ procured outside. The company uses the normal drafting software for deg the product .Nearly 230240new products are developed in a year.

NEW PRODUCT DEVELOPMENT – KML Dedicated team of engineers


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Structured NPD process in place  CFT approach  Design reviews  Design & process FMEA  CAD software – CAD 2000. pro E  Capability to co – design  Can leverage REVL’s facilities and capabilities.

Design and development capabilities:  Centralized R&D and product engineering function responsible for customer interaction and product design.  Specialists in IC engines, CAE & CAD application.  NPD process aligned to ISO /TS 16949:2002 requirements.  Concepts like QFD, design reviews adopted from Japanese practices.  Software capabilities – AUTOCAD, PRO –E & analysis.

Testing capabilities:

ORGANISATION STUDY ON KAR MOBILES LIMITED  Endurance test done for concept proving and design validation.  Power , SFC in the engine and wear &distortion on the product are measured  Valve temperature measurement can also be done based on customer requirement.

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S= strengths 1. Recognized as a medium &large valve manufacturer. 2. Strong presence in locomotives segments.

3. High brand equity in served markets. 4. Excellent relationship with key customers. 5. Vast dealer’s network & field force. 6. Technical collaboration with TRW Inc U.S.A. 7. Export oriented plant at Tumkur. 8. Specialization in valves. 9. Practice of TQM resulting continuous productivity gains. 10. Capability to manufacturer large valves. 11. Skilled manpower. 12. Wide range of products at industry level. 13. Experience in handling overseas customers. 14. The company as wide dealers network and field force spread

world.

across around the


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15. Specialization in valves. 16. The company has a capacity to produce 8 million valves per annum.

17. Provide effective information . 18. Research & development to efforts to upgrade products /process have continued to yield good results. 19. Adhere to strict quality controls.

W=weakness

1. Inadequate focus on cost reduction. 2. Lack of process robustness. 3. Limited knowledge of large valve manufacturing. 4. Limited knowledge of large valve markets. 5. Low investment in technology up gradation. 6. Highly sensitive raw materials. 7. Inability to meet the requirements. 8. Low productivity. 9. Inadequate failure.


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10. Communication gap/increasing low volume requirements. 11. Changing product or market mix. 12. Poor process capability. 13. Inadequate focus on exports. 14. Poorly maintained machines. 15. Weak in technological innovations. 16. Lack of pride in workmanship. 17. Insensitivity to customers. 18. High wage cost.

19. Inadequate systems. 20. Low competencies. 21. The company is exposed to cyclical downturns in the automotive industry. 22. Dependence on original equipment manufacturer’s. 23. The company is lacking up funds in idle assets there by resulting in improve cash management. 24. Longer operating cycle resulting in increased working capital requirements. 25. Due to increased competition and pressure from OEM customers especially in

enger car segments, the company product prices may come down in future which may have an adverse effect on profits of the company.

O= opportunities


1.

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India has accreted the effects of global slump and continues to grow at a healthy

7.8 %. 2.

More and more multinational company is now targeting India as the hub for

manufacturing and exporting. 3.

Many global automobiles manufacturers have set up bases here and actively

pursuing sourcing from here .This provides good opportunity to component manufacturer for accelerated growth. 4.

Outsourcing by valve manufacturers in high cost countries.

5.

Increased outsourcing by international customers.

6.

Growth opportunities in after market.

7.

The continued attraction in Indian auto component industry as an outsourcing

hub presents immense opportunities of growth. 8.

Win market share from high cost competitors in over seas market

9.

Exploit large & growing domestic two wheeler market.

10.

Participations in global out sourcing.

11.

Manufacturing /trading of related engine components.

12.

CNC machining.

13.

The company is exploring growth opportunities while retaining current customers

who are likely to recover once economic scenario recovers in U.S.A. and Europe. 14.

Significant export opportunities may be realize through diversification of export

basket.


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T= threats

1. Dumping from china & cheaper imports from other low cost countries. 2. More competition since there are no growth opportunities for MNC’s

elsewhere. 3.

The presence of large counterfeit components markets poses a significant threat.

4. Volatility in commodities and exchange rates. 5. Price competition from other emerging countries. 6. Increasing domestic competition. 7. Volatility in commodities & exchange rates. 8. Limited growth rate in the after market as a result of enhanced durability of engine valves. 9. The presence of superior products in the replacement market. 10. Volatility in commodity prices steel and other inputs.


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11. Currency fluctuations. 12. Competition from Italy, Argentina, China, Taiwan. 13. Imports pose price based competition in the replacement market. 14. Due to increased competition and pressure from OEM customer. Especially in

enger car segments. The company’s product prices may come down in future which may have an adverse effect on profits of the company. 15. The major portion of the company export receivables are denominated in US

dollars while most of the input costs are incurred in Indian rupees & Japanese Yen .The strengthening of Indian rupee with respect to USD could adversely impact the profitability of export sales and this situation could continue if the Indian rupee continues to appreciate against USD. 16. Further slowdown in the domestic economy may reach in lower off take by OES and institutional customers.


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The First Indian Company to sign a vendor partnership with General Motors Manufacturing in technical collaboration with TRW Inc, USA Client list featuring reputed brands like Miff less


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Blackstone, Pielstick, Ruston, Wartsila Diesel We are looking for experts to drive our global excellence further.

Kar Mobiles Limited is part of the RANE Group, a world class automotive components manufacturer recognized as a preferred supplier to major OEMs in India and Overseas. With over 3 decades in the manufacture and supply of Internal Combustion Engine Valves, Kar Mobiles is TS16949 certified, practicing TQM as a way of life. At present we are looking for experienced professionals with a ion for leadership to drive operations at our manufacturing plants in Peenya and Tumkur. Some measures to improve the current scenario of the organization: •

Need to improve its investment strategy

•

Need to improve the marketing strategies of the company

•

Need to promote export import for hike in profits.

•

Need to bring lot more innovative strategies into action.

•

Need to develop the functional skills of the employees with lot more training and developmental activities.


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The Quest towards Profitability While capital and management needs for manufacturers of different sizes differ, the basic principles applicable to every business remain true for manufacturing processes both large and small. The common challenge for any manufacturer is to find a way of producing as many items at the lowest cost possible to ensure maximum profitability, which is what sustains the continued operation of any business.

Economies of Scale Large-scale operations benefit from economies of scale. By buying raw materials in bulk, a business could get contracts for a lower price, reducing the cost of material per unit of goods produced. Expanding the scale of one’s operation has the same result – lower cost of production for each product made. Economies of scale can also be obtained in the area of marketing. The more products are sold, the wider the range at which advertising cost can be spread over.

Technology and Competition Having lower cost of production is an edge against competitors, particularly for a business that produces goods whose price factors much on their appeal to customers. Competition in this category of goods has the effect of lowering the price of the merchandise. In general, competition can also drive innovation, and encourage efficiency resulting to newer products that are better and more diverse. For any business, it is a constant challenge to capture a part of the market, and keep or increase that share relative to competitors. Many factors can lead to the failure of a business; one of these is failing to keep up with technology.


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With all these measure an organization like KAR MOBILES LIMITED can achieve its desired goals and success and can also sustain in the market in the long run …..


1. KAR MOBILES JOURNALS. 2. ANNUAL REPORTS OF KAR MOBILES LIMITED. 3. GOOGLE WEBSITE 4. BUSINESSS MAGAZINES. 5. BUSINESS TIMES NEWS PAPRES ETC...

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