internship-training-in-ashok-leyland

1. INTRODUCTION
Ashok Leyland is a well known automobile manufacturing company in India. Ashok
Leyland believes that its historical success and future prospects are directly related to
combination of strengths.
This project is titled as a study on functional areas in Ashok Leyland and tries to find out
the different aspects of manufacturing process in the company. The project was held at
ennore, plant from 15 to 14 July2010.
Different officials working in various departments have provided very important data in
this report. Every effort has been made to understand the functions and activities of
various departments as well as the manufacturing process.
ABSTRACT
The report provides a consolidated preview of the functional activities of Ashok Leyland,
ennore first plant. The referred unit is a core limb of Ashok Leyland, the nation’s
pioneering automobile manufacturer. The core departments; their primary functions and
the integrating activities are described in the report. Other special regulatory functions
like evaluation methods, employee benefit schemes have also been covered.
The unique features and policies of the company, which make it a leader without
contention and have aided the company in carving an excellent niche for itself in the
national and the international arena, have also been referred.
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2. OBJECTIVES OF THE STUDY
The objectives of the study are:
• To familiarize with business organization.
• Getting practical experience regarding the organizational function.
• To learn about the policies and functions of the organization.
• To understand the culture in the organization and its effect on employees.
• To get industrial exposure and experience.
• To understand the production and marketing methods.
METHODOLOGY
This study was undertaken by undergoing a training program at Ashok Leyland for
about a fortnight. The information was collected by interacting and interviewing with
the concerned personnel of various functional departments.
The methodology used for the study is through the collection of primary and
secondary data. Primary data is collected through direct observation and live
discussion with the managers and the staff members. Secondary data is collected
through Annual Reports, Business Journals, and Existing Records and also from the
website of the company.
SCOPE OF THE STUDY
The study is mainly based on the details collected from each department. It provides a
better understanding at functional level of each department. It provides a better
understanding at functional level of each department i.e. Purchase, Materials,
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3. Production, Marketing, Finance and Human Resource Management. Each and every
activity of the company has been studied very carefully with the data available. Apart
from that I gained knowledge of the functioning of different departments and their
inter relationship with each other. This study helped me familiarize with the
manufacturing and assembling of commercial vehicles.
COMPANY PROFILE
Ashok Leyland has been a major presence in India’s commercial vehicle industry since
1948, the year it was born. The origin of Ashok Leyland can be traced to the urge for
self-reliance, felt by independent India. Pandit Jawaharlal Nehru, India's first Prime
Minister persuaded Mr. Raghunandan Saran, an industrialist, to enter automotive
manufacture.
They are one of the India’s leading manufactures of commercial vehicles and special
vehicles, engines for industrial purpose, gen sets and marine requirement equipments. For
over five decades, Ashok Leyland has been the technology leader in India’s commercial
vehicle industry, molding the country’s commercial vehicle profile by introducing
technologies and product ideas that have gone on to become industry norms.
Ashok Leyland at the time of its inception was known as Ashok Motors. It was
assembling Austin cars at the first plant, at Ennore, near Chennai. In 1950, the company
started assembly of Leyland commercial vehicles and soon the local manufacturing under
license from British Leyland; participation in the equity capital, in 1954, the company
was re christened Ashok Leyland.
Since its inception, Ashok Leyland has been a major presence and these years have been
punctuated by a number of technological innovations which went to become industry
standard. This tradition of technological innovations and leadership was achieved through
years of vigorous in-house research and development.
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4. From 18 seater to 82 seater double-decker buses, from 7.5 tonne to 49 tonne in haulage
vehicles, from numerous special application vehicles to diesel engines for industrial,
marine and genset applications, Ashok Leyland offers a wide range of products.
Ashok Leyland has six manufacturing plants -
Ennore Plant, Chennai.
Hosur Plants Unit I, Unit II and Unit II A.
Alwar, Rajasthan.
Bhandara, Maharashtra.
A new plant is to be set to be launched in Uttaranchal at Pant Nagar with a plant capacity
of 40,000 commercial vehicles. Early products of Ashok Leyland included the Leyland
Comet bus chassis sold to many operators including Hyderabad Road Transport,
Ahmedabad Municipality, Travancore State Transport, Bombay State Transport and
Delhi Road Transport Authority.
In the popular metro cities, four out of five state transport undertaking buses come from
Ashok Leyland. Some of them like the Double Decker and Vestibule buses are unique
models from Ashok Leyland, tailor made high-density routes.
Statistics reveal that the company is India’s largest exporter of medium and heavy duty
trucks. It sells close to 83,000 medium and heavy vehicles each year. The company has a
near 98.5% market share in the Marine Diesel engine markets in India. At 60 million
passengers a day, Ashok Leyland buses carry more people than the entire Indian Railway
network.
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5. ORGANIZATION STRUCTURE
In 1987 the overseas holding by LRLIH (LAND ROVER LEYLAND
INTERNATIONAL HOLDINGS LIMITED) was taken over by a joint venture between
the Hinduja group, the Non Resident Indian Transnational group and IVECO Fiat SPA
part of the Fiat group and Europe’s leading truck manufacturing company. Ashok P
Hinduja is the chairman of the company. The Hinduja group also associated with Ennore
Foundries Limited, Automotive Coaches and Components Limited, and Gulf Ashley
Motors Limited.
The subsidiary holdings are Ashley Holdings Ltd., Ashley Investment Ltd., and Ashok
Leyland Project Services. The chief competitors of the company are;
• Mahindra
• Volvo
• Tata Motors
With a commanding strength of the about 12,000 employees the company is looking
forwards to enhance the sxope of its action. It is aiming at expanding its production
operation overseas to make it a more globally accessible company. It is looking to
acquire a small to medium sized commercial vehicle manufacturers in China and other
developing nations, which have an established product line. An example would be the
2007 acquisition of the Czech based Avia’s truck business rechristened Avia Ashok
Leyland Motors.
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6. VISION
Be among the top Indian corporations acknowledged nationally and internationally for
- Excellence in quality of its products.
- Excellence in customer focus and service.
MISSION
Be a leader in the business of commercial vehicles, excelling in technology, quality and
value to customer fully supported by customer service of the highest order and meeting
national and international environmental and safety standards.
GEMBA
Gemba is a Japanese word meaning “Real Place” where the real action takes place.
In the manufacturing industry, there are 3 major activities directly related to earning
money, developing, producing and selling products.
GEMBA KAIZEN
Three ground rules for practicing kaizen in Gemba.
1. House Keeping
2. Muda Elimination [Waste Elimination]
• Waste of over production
• Waste of inventory
• Waste of waiting
• Waste of Motion
• Waste of transportation
• Waste of Producing Rejects
• Waste of processing
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7. 3. Standardization.
GEMBA MISSION
• Increase in the number of GEMBA
• CMI (Cost management initiative)
• Inventory Initiative
• Critical machine uptime
• Quality
• Safety
VENDOR OPPORTUNITIES:
Our Vendors are our valued partners in our business development and we shall work with
them in a spirit of mutual co-operation to meet our business objectives.
Vendor Development and Strategic Sourcing are handled by Corporate Materials
Department (CMD). CMD identifies the vendors, rates the vendors based on feedback
received from Supplier Quality Assurance Cell, sends drawings / specifications, calls for
quotes with detailed break-up of operation-wise costs, and negotiates the price at which
the parts will be supplied.
In addition to CMD at Ennore, and the two Units at Hosur, there are Materials
Management Departments (MMDs) for scheduling based on unit production plan.
VENDOR DEVELOPMENT OF STRATEGIC SOURCES:
Strategic Sourcing is central to the integrated Materials Management function. Ashok
Leyland's policy is to develop a vendor base committed to continuous improvement to
meet quality, cost and delivery standards.
Ashok Leyland considers its vendors as partners in progress and believes in
establishing mutually beneficial relationships. Ashok Leyland provides necessary
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8. technical assistance in the form of Project and Production Engineering, to maintain
quality levels. In addition, where required, Ashok Leyland also helps vendors financially.
Qualification Analysis – Executives
Ashok Leyland has a tie-up with BITS, Pilani for a custom-designed, off-campus 2-year
MS course in Engineering Management. Aimed at making Managers out of Engineers,
assignments and projects are central to the learning process thus bridging the classroom
with the engineers' workplace. From 2000, a BS programmers in Industrial Engineering
and Technology, is offered for diploma holders, again in collaboration with BITS. Apart
from updating their knowledge base, the programme empowers engineers to acquire
multiple skills.
Ashok Leyland is one of the moving forces behind an M.Tech course in Automobile
Engine Technology jointly managed by the automobile industry (Indian Society for
Automotive Technology, made up of auto manufacturers), IIT, Madras and Institute
Francais du Petrole, the French institute for IC engines.
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9. ORGANISATION STRUCTIURE
9
MANAGING DIRECTOR
EXECUTIVE DIRECTOR
SENIOR DIRECTOR
GENERAL MANAGER
ASST. GENERAL MANAGER
DEPUTY GENERAL MANAGER
ASST. MANAGER
SENIOR OFFICER
OFFICER
DIVISIONAL MANAGER
MANAGER
SENIOR MANAGER
DIVISIONAL MANAGER

10. DEPARTMENT FUNCTIONS
The major functional areas of the unit and the major departments which oversee those
areas are catalogued as follows:
1. Personnel and Administration Department
2. Purchase & Material Planning Department
3. Production Department
4. Finance Department
5. Systems Department
6. Research & Development.
A brief review of each functional department and its activities as follows:
PERSONNEL & ADMINISTRATION
Departmental Structure
-MT
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CHIEF SECURITY
OFFICER
DIVISIONAL
MANAGER IR
Sr. MANAGER
HR
DGM
MEDICAL
OFFICER
-MANAGER
-DIVISIONAL
MANAGER
-ASST. MANAGER
-OFFICERS
-ASST. MANAGER
-MT
-OFFICER

11. RECRUITMENT
Recruitment is the process of ‘finding and attracting capable applicants for employment.
The process begins when new recruits are sought and ends when their applications are
submitted. The result is a pool of applicants from which new employees are selected.
SOURCES OF RECRUITMENT
The following are various external sources of recruitment:
 Consultancies
 Campus recruitment
 Lateral entries
1. CONSULTANCIES
The department heads where requirements are needed informs to the HR department
about the requirement. The concerned person for recruitment gets approval for filling the
vacancies. Then the consultancies are approached telling the requirements. The fit
applications are mailed to attend the interview. If satisfied, they are called for the
personal interview.
2. CAMPUS RECRUITMENT
The recruitment panel goes to the reputed colleges to select the candidates.
On the following basis they recruit the candidates
 GETs - Graduate Engineer Training
 DETs - Diploma Engineer Training
 ITI
3. LATERAL ENTRIES
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12. They pick the experience candidates or people from other companies. The following is
the process of lateral entry recruitment:
1. Sourcing
2. Interview
a. Written test
b. Technical round interview
c. Personal Interview
TRAINING
Training is an on-going process aimed at capability-building of the employees at all
levels. Training programmes is classified into
• Skills
• Knowledge
• Behavior
WORKMEN CAPABILITY BUILDING
Training & Development for the unionized employees at the manufacturing units is
focused on skill development. Both internal and external training is given for associates.
Guest lectures of external faculty and various other industrial visits will be arranged for
associates. In addition to some programmes like engineering drawing and waste
elimination are also conducted.
TRAINING FOR SENIOR/ MIDDLE LEVEL MANAGEMENT
Both external and internal training is given for the executives. Faculty from outside
agencies will be arranged for training them. They also get faculty from corporate level.
Training for senior/middle level management is done on the following basis:
1. Technical
2. Behavioral
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13. 3. Functional
DEVELOPMENT ACTIVITIES
The following are the developmental activities:
 TEI – Total Employee Involvement
 CFG – Cross Functional Group
 QC – Quality Control
 SS – Suggestion Scheme
EMPLOYEE RETENTION/INCENTIVES
Performance linked pay
The company has an annual appraisal system in place and pursuant to this system,
performance linked pay, annual variable pay and/or commission is paid to the employees.
HR Initiatives
There is a HR initiative called “SEED”. In this, employees are welcomed to provide
suggestions to improve quality, performance, cost reduction, etc., If their suggestions are
feasible, they are accepted and the others are rejected. A cash award, awards such as
RESI, GEMBA passport is given to them as a token of appreciation. This motivates
people to contribute their ideas.
Employee welfare schemes
The following are the welfare schemes available to the employees.
 Canteen facilities
 Medical claims
 Transport facilities
 Ashok Leyland school for their children
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14.  Scholarship schemes
 Recreation facilities
PERFORMANCE APPRAISAL
‘Performance appraisal is an objective assessment of an individual’s performance against
well defined benchmarks’. The performance appraisal method followed is based on the
Superior – subordinate relationship, whereby the superiors rate their subordinates. They
are rated on the basis of their performance.
CORPORATE SOCIAL RESPONSIBILITY
 Donations
 Career guidance
 AIDS awareness
 Guest lectures for school and college students
PROMOTIONS
Promotions are given once in three years wherein there is elevation from one level to the
other. They give promotions based on the 3x3 matrix.
Performance
SEPERATIONS
When people leave the organization, Exit interviews are usually conducted to know the
reasons for leaving. The common reasons given are
• Better opportunities
A3 A2 A1
B3 B2 B1
C3 C2 CI
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15. • Financial problems
• Lack of growth
• Job clarity
ATTRITION
Attrition rate is noted to be 5.6% till December 2008.
PURCHASE & MATERIAL PLANNING
For a manufacturing company to produce end items to meet demand the availablility of
sufficient production capacity must be co-ordinated with the availability of raw materials
and purchased items from which the end items are to be produced.the following are the
system which are followed to procure materials:
-JIT
-LCL
-MRP
-VMS
-KANBAN
JIT
It is an approach than seeks to eliminate all source of waste in production activities by
providing the right part at the right place at right time .JIT encompasis the successful
execution of all manufacturing activity required to produce a final product from design to
delivery and including all stages of conversion from raw materials onwards.
PURPOSE OF JIT
• -have only the required inventory need
• -improve quality to zero defect
• -to reduce lead time
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16. • -to incrementally revise the operations themselves and to accomplish these things
at minimum cost.
LOW COST LOGISTICS (LCL)
LCL Includes materials such as bolts nuts etc. these are purchased in bulk and they are
used for production. They don’t affect the inventory cost.
MATERIAL REQUIREMENT PLANNING
Material is a technique for determining the quantity and timing for the acquisition of
dependent items needed to satisfy master schedule requirements
An alternative approach to managing dependent demand items is planned for
Procurement or manufacture of the specific components that will be required to produce
the required quantities of end production schedule indicated by the master production
schedule.
BILL OF MATEIALS
The parts /components requirement of the final product which is to be manufactured is
usually presented in the form of a product structure/bill of materials. it is a listing of all
components that go into an assembled item. It frequently includes the part number and
quantity required per assembly.
KANBAN
The kanban system is a signal proofing. the firm stores their materials and other
inventory item in a signal use contains that holds a specific amounts of material or other
inventory part that are used to manufacture the product. when the material in a container
is depleted, a KANBAN that defines requirements of inventory items to continue the
production process is kept in the container.
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17. PRODUCTION
Departmental Structure
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DEPUTY GENERAL
MANAGER
CONNECTING
ROD, CAMP SHOP
& GEARS
DIVISIONAL
MANAGER- SHOP-I
CYLINDER BLOCK
& CYLINDER HEAD
ASST. GENERAL
MANAGER-
ASSEMBLY
Sr. MANAGER Sr. MANAGERSr. MANAGERSr. MANAGER
ASST. GENERAL
MANAGER-
MACHINE SHOP-V
EXECUTIVES EXECUTIVES
ASST.
MANAGER
ASST.
MANAGER

18. MACHINE SHOP I
COMPONENTS MACHINED:
• Cylinder block machining (AL-680 Engine)
• block machining (H-series Engine)
• Rocker level (Rocker arm actuating device)
• Cylinder H-series camshaft machining
• H-series connecting rod machining
• H-series timing gear case machining
• H-series flywheel housing machining.
MACHINE SHOP-V
COMPONENTS MACHINED:
BEARING CAP FOR H-SERIES:
Operations done:
 Rough milling
 drilling
 arrow milling
 finish milling
 washing
 boring
 tapping
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EMPLOYEES EMPLOYEES

19.  end milling
 brushing of holes
 assembly of bearing caps
 injection flood washing
 leak test water ways
 counter boring, reaming
ENGINE ASSEMBLY II & V
FIXING OF CRANKSHAFT AND BEARING CAPS:
CRANKSHAFT is attached with a gear and is fixed to the bottom of the cylinder
block by bearing caps.
FIXING OF CAMSHAFT
CAMSHAFT is attached with a timing gear and is fixed in the
Required space provided in the cylinder block
• Fixing of flywheel housing
• Assembly of oil sump
• Fitting of oil stainer
• Fixing of fuel injection pump
• Fixing of connecting rod and piston
• Assembly of inlet manifold
• Fixing if started motor
• Fixing of connecting rod with crankshaft
• Fixing of timing gear case
• Compressor fitting
• Fitting of cylinder head and rocker arm assembly
• Fitting of cylinder head cover
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20. • Fitting of oil coolant
• Assembling of turbocharger or air fitter
• Fitting of atternator, fitting of belt.
MEDIUM DUTY VEHICLE (MDV)
CATEGORY:
Vehicles which transport load in the range of 16 to 35 tonnes
PRODUCTION IN MDV ASSEMBLY (H1 PLANT):44/day, 22/shift
STAGES OF ASSEMBLY:
Frame Assembly: 5stages
Chassis Assembly: 13 stages
FRAME ASSEMBLY:
STAGE 1: Mounting of side members and cross members
STAGE 2: Mounting of Front Spring-rear, Front Spring-rear, Rear spring-front, Rear
spring-middle, Rear spring-rear.
STAGE 3: Fitting of Engine mounting brackets and FES mounting brackets
STAGE 4: Side members fastening to torque limit, Steering box bracket, Side Members
reaming, Front tie channel mounting
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21. STAGE 5: Fitment of FES rear brackets, Shock absorber brackets and Torque checking
PASSING STAGE: Checking and tilting
CHASSIS ASSEMBLY:
STAGE 6: Radiator mounting brackets, Air tank mounting, Air cleaner mounting
bracket, battery mounting bracket, grease nipple fitment, Bellcom lever mounting.
STAGE 7: DC valve mounting, Oil piping, Clutch oil piping, Quick release valve
mounting.
STAGE 8: Spring fitment, frame punching
STAGE 9: Silencer fitment, first axle mounting.
STAGE 10: Second axle mounting, slack adjustment
STAGE 11: Fuel piping, Air piping, Air filter mounting, Diesel filter mounting, and
Steering box mounting
STAGE 12: Engine mounting, fuel tank mounting, Diesel filter mounting, steering box
mounting
STAGE 13: Radiator fitment, Radiator supports tightening, Rear lamps
fitting,Turbocharger outlet pipe connection and Radiator hose connections
STAGE 14: Exhaust piping, Shock absorber fitment (front and rear), Battery mounting
and connection of circuits, battery casing fitment and second propeller shaft mounting
STAGE 15: Tyre mounting, Maxcut checking
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22. STAGE 16: FES mounting, electric fitments (male-female connecting process)
STAGE 17: Bumper fitment, FES wiring, and Universal joint (UJ) fitment with steering
handle, ABC fitment and connecting
STAGE 18: Greasing of joints, nuts, etc., off track arrangements
FES DRESSING:
• Fitting of seats, ABC pedals, steering handle and instrument box
• Electrical wiring
• Flink Valve Fitting.
PDI (PRE DELIVERY INSPECTION):
Testing of vehicle on real road conditions
The following are the various tests done to test the vehicle:
1. Speed test
2. Acceleration test
3. Vibration test
4. Torque tightening
5. Oil level and water level checking
6. Electrical components checking
7. Air leakage test
8. Grease level checking
9. Power steering hose routing and clamping
10. Road test
QUALITY CONTROL
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23. QUALITY:
It is the degree to wish a set of inherent characteristics fulfills requirements. The
following are the various dimensions of quality.
• Performance
• Features
• Conformance
• Reliability
• Durability
• Service
• Response
• Aesthetics
• Reputation
TQM:
It is defined as both a philosophy and a set of guiding principles that represent the
foundation of a continuously improving organization. It is the application of quantitative
methods and human resources to improve all the processes with an organization and
exceed customer needs now and in the future.
QUALITY POLICY:
Ashok Leyland is committed to achieve customer satisfaction by anticipating and
delivering superior value to the customer in relation to their own business, through the
products and services offered by the company and comply with statutory requirements.
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24. Towards this, the quality policy of Ashok Leyland is to make continual improvements in
the processes that constitute the quality management system, to make them more robust
and to enhance their effectiveness and efficiency in achieving stated objectives leading to
1. Superior products manufactured as also services offered by the company.
2. Maximum use of employee’s potential to contribute to quality and environment
by progressive up gradation of their knowledge and skills as appropriate to their
functions.
3. Seamless involvement from suppliers and dealers in the mission of the company
to address customers changing needs and protection of the environment.
OBJECTIVES OF QC DEPARTMENT:
1. Identity the quality level to meet drawing and specification requirements.
2. Establish necessary infrastructure and system to carryout quality planning, control
and improvement activities.
3. Exercise necessary controls at all stages to ensure total conformance of product
quality to design specifications.
4. Evaluate product quality in the light of performance and customer feedback to
review and update quality level, infrastructure and systems.
SYSTEM OF ACCEPTING PRODUCTS:
1. ZERO DEFECTS SAMPLING PLAN:
Here, the defect level should be zero, then accept the product. If there is one
defect also they will reject the product.
2. DOUBLE DEFECT SAMPLING PLAN:
Here, first one set of samples will be taken and if they find defect another set of
samples will be taken if it goes beyond the fixed level then reject or else accept the
products.
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25. INSPECTION:
It is also to eliminate, substantially reduce or automate the inspection activity.
There are 4 phases of inspection.
• 100% inspection
• Sampling
• Audit
• Identity check
PURCHASED PRODUCTS VERIFICATION PROCESS
INPUT OUTPUT
RESPONSIBILITIES OF QC DEPARTMENT
The quality engineering dept is responsible for quality of all products of Ashok
Leyland, Hosur which is achieved by…
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PURCHASED
VERIFICATIO
N
PROCESS
SUPPLIER
THROUGH
PURCHASE
CUSTOMER ENG /
VEH / ASSY
* INWARD
REJECTION
*INTERNAL
CUSTOMER
CONCERN
*VENDOR
PERFORMANCE
*INTERNAL
CUSTOMER
FEEDBACK

26. 1. Ensuring the quality of bought out machine VIZ rough, semi-finished &
finished.
2. Exercising controls on the processes clearing, manufacturing and assembling
there by ensuring the quality of the house made items.
3. Ensuring the quality of the finished products prior to dispatch to the
customers.
4. To provide support to the vendors to meet the quality requirements and also
guidelines for continuous improving.
The departments is also responsible for
1. Planning and implementation of APQPCP & PPAP procedures to meet TS16949
requirements.
2. Training in quality engineering and quality control technique to all dept of Ashok
Leyland, ennore.
3. Monitoring quality level of “zero kilometer” failures and field performance for
improvements
BENCHMARKING:
Benchmarking is the systematic search for best practices, innovative ideas, and
highly effective operating procedures. Benchmarking considers the experience of others
and uses it. It promotes superior performance by providing an organized framework
through which organizations learn how the “ Best in class ” do things, understand how
these best practices differ from their own and implement change to close the gap.
LEVELS OF BENCHMARKING:
1. Contempary level
2. High level.
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27. PROCESS OF BENCHMARKING:
The following six steps are followed to benchmark
1. Decide what to benchmark
2. Understand current performance
3. Plan
4. Study others
5. Learn from the data
6. Use the findings.
CONTINOUS PROCESS IMPROVEMENT:
Quality based organizations should strive to achieve perfection by continuously
improving the business and production processes.
CUSTOMER RETENTION:
It represents the activities that produce the necessary customer satisfaction that creates
customer loyalty, which actually improves the bottom line. It moves customer
satisfaction to the next level by determining what is truly important to the customers and
making sure that the customer satisfaction system focuses valuable resources things that
really matter to the customer. It is the connection between customer satisfaction and the
bottom line.
WAYS TO RETAIN CUSTOMERS:
The following are the various ways followed here to retain their customers
1. Warranty expenditure measure
2. Dealers conference
3. Customer visits
4. Monthly plant quality review
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28. FEEDBACK FROM CUSTOMERS:
Feedback is collected from the customers regarding quality through the following
ways.
• Customer visits
• Toll-free telephone number
• Comment card
• Report card
PROBLEM SOLVING METHOD: -
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ACT PLAN
STUDY DO
IDENTIFY THE OPPURTUNITY
ANALYSE THE PROCESS
DEVELOP THE OPTIMAL SOLUTION
IMPLEMENTSTUDY THE RESULTS
STANDARDIZE THE SOLUTION
PLAN FOR THE FUTURE

29. PLANT ENGINEERING
Plant engineering is responsible for proper functioning of the plant by carrying out
maintenance operations such as electrical and electronics equipments maintenance, fork
lift charging and its repairing, repairing of pneumatic circuits etc.. It is also responsible
for maintenance works carried out in the organization. The following are the various
types of maintenance:
 Predictive maintenance
 Preventive maintenance
 Breakdown maintenance
 Routine maintenance
1. PREDICTIVE MAINTENANCE:
Predictive maintenance is done on assumption by experience before the occurring
or by any symptoms of occurring.
2. PREVENTIVE MAINTENANCE:
Preventive maintenance is done before the accident occurs, they will take actions to
prevent them.
3. BREAKDOWN MAINTENANCE:
Breakdown maintenance is done after the accident occurs. Actions will be taken
only after the occurrence
4. ROUTINE MAINTENANCE:
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30. Routine maintenance is done on even time or on routine basis. It is generally carried
out without affecting the productivity.
DIVISIONS:
Plant engineering is divided into 4 divisions to carry out its functions. The following are
divisions of plant engineering:
 Electrical
 Mechanical
 GWE(General Works Engineering)
 Civil
PERIOD OF MAINTENANCE:
Period of maintenance is done on the basis of VED analysis. It is also known as time
based maintenance. Here VED stands for
V - Vital
E - Essential
D – Desirable
ANALYSIS DURATION
V- Vital 6 months
E- Essential 9 months
D- Desirable Once in a year
PEP: - PRODUCTION ENGINEERING & PROJECTS
PEP department works as a bridge between R & D and Manufacturing Department. The
R & D designs and if the testing is successfully achieved it is transferred to PEP.
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31. RESPONSIBILITIES OF PEP:
1. Deciding and releasings of MAKE OR BUY DECISION ADVICE (MBDA) for
new components.
If bought from supplier that may be;
BOR (Bought out Rough) – need further processing.
BOSF (Bought out Semi Finished) – need further prosessing.
BOF (Bough out Finish) – ready for assembly.
BOR & BOSF are chosen to maintain quality standards, core competency, improve
efficiency, and to enjoy cost benefits.
• Laying down the Process and Selection of Machines.
• Designing new tools for inhouse components
• Organising and Conducting assembly trials.
• Continuous improvements towards quality and productivity
• Analysis of processes and layouts
• Progressing of new projects to bridge between R & D and manufacturing.
IED – Industrial Engineering Department.
This is closely related to PEP department. They work as a single wing.
RESPONSIBILITIES OF IED
1. Decide on capacity planning.
2. Manpower capacity & Requirement.
3. Machine capacity and running time
4. Operating time.
5. Frame performance index for incentive.
6. Frame the work instruction sheet, process sheet.
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32. 7. Processing FMEA for assembly vehicle
STORES AND LOGISTICS
There are Stores meant for both Vehicle assembly and Engine Assembly. Vehicle part
number and engine part number are framed for identification. 2 bin system are practiced.
Despatching of finished vehicle and semi finished engine are processed every morning.
Goods Receipt Note (GRN) is the vital documents required for inspection. TVS
Logistics are the group who supply the internal components. All the dispatching and
supply schedules are accessed from ERP both by Company Logistics and TVS Logistics.
As a cost beneficial measure for the Company and Supplier , the godowns of the supplier
are located nearby for easy delivery and enhances the efficiency of JIT.
FINANCE
FINANCE FUNCTIONS:
1) Investment decisions
2) Financing decisions
3) Dividend decisions
4) Liquidity functions
ROLE OF FINANCIAL MANAGER:
1) Funds raising
2) Funds allocation
3) Profit planning
4) Understanding capital markets
SHAREHOLDING:
The following are the shareholders of Ashok Leyland Ltd:
 51% owned by Hinduja group
 12% - 14% owned by public
 Remaining shares are owned by various financial institutions
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33. DIVIDEND POLICY:
The Board may, at its discretion, recommend dividends to be paid to the shareholders.
Generally, the factors that may be considered by the Board of Directors before making
any recommendations for the dividend include, without limitation, the future expansion
Splans and capital requirements, profits earned during the fiscal year, cost of raising
funds from alternate sources, liquidity position, applicable taxes including tax on
dividend, as well as exemptions under tax laws available to various categories of
investors from time to time and general market conditions. The Board of Directors may
also from time to time pay interim dividends to the shareholders. Dividends, other than
interim dividends, will be declared at the annual general meeting of the shareholders
based on the recommendation of the Board of Directors.
BUDGET:
The funds which are required by the organization are provided by the corporate office,
Chennai. These funds are allocated to the departments whenever there is requirement.
ALLOCATION OF FUNDS:
Funds are allocated for various purposes of the departments. They allocate funds for day
to day activities and also for various projects and also for special projects, they also
allocate for payroll.
PAYROLL:
They use the customized ERP to pay salary to the employees. Every month on 10th
salary is paid for the workers and on 28th
salary is paid for the executives.
SYSTEM
Ashok Leyland Network Connectivity
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34. Supplier
ASHOK LEYLAND ERP- FAMILY MEMBERS:
• ALMAP- Manufacturing
• ALMARK- Marketing
• ALFIN- Finance
• ALPAY- Payroll
• ALPMS- Plant maintenance
• ALEMS- Environmental management
• ALHR- Human resources
• ALCORP- Corporate functions
Hosur- unit I
Hosur- Unit II
Bhandara
ENNORE
AL - AU
DCUMKTGALWAR
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Internet
Corporate

35. • ALSCM – Supply Chain Management
• ALPD – Product Development
• ALNPRD – Non Production
• ALIMS – Information Management Systems.
HARDWARE TECHNOLOGIES USED IN SYSTEMS:
# DATABASE SERVERS – (3nos)
* HP-R*8640 Itanium Processor (1.3 GHz)
* 16 Processors each
* 64 GB RAM (total 192 GB)
#APPLICATION SERVER (5nos): -
--Compaq Alpha Server- model ES40
* Dual Processor
* 6 * 9.0 GB of OS
* 4GB RAM
# DATA STORAGE: -
* EVA 5000 Disk sub system
* 2 Controllers
SOFTWARE TECHNOLOGIES USED IN SYSTEMS:
# Oracle log
# Internet Application Server (IAS)
# Real Application Cluster (RAC)
# Application development with
*Oracle forms 6i
* Oracle reports 6i
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36. MODULES USED INSIDE THE COMPANY:
• ACL - Access Control Module
• BOM - Bill of Material
• MPL - Material Planning
• SDB - Supplier Database
• POS - Purchase Order System
• IPS - Inspection Planning Sheet
• INW - In warding
• JIT - Just In Time items
• LCL - Low Cost Logistics Items
• MRM - Sun Contractor Material Issues
• MTN - Sub Contractor Material Transfer
• VQR - Vendor Quality rating
• VDP - Vendor Delivery Performance
• STK - Stock / Inventory
• CPM - Comprehensive Process Master
• PPL - Production Planning
• SFC - Shop Floor Control
• UPJ - Unplanned Jobs
• URDC - Inter Units Receipt & Dispatch
• EXS - Excise
• PSL - Priced Stored Ledger
• WMC - Works Made Items Costing
• VCS - Vehicle Costing System
• SCL - Sub Contract Ledger
• RMGP – Returnable Material Gate pass
• CFS – Chassis Final Specification
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37. • LTMS – Lean Tool Management System
GROWTH MILESTONES OF ASHOK LEYLAND
1966 – Full air brakes introduced
1967 – Double Decker buses introduced.
1968 – Power steering offered.
1979 – Multilane trucks introduced.
1980 – Integral bus with air suspension.
1992 – Self-certification status for defence supplies.
1993 – ISO 9000 Certification.
1994 – ISO 9001 Certification
1997 – India’s first CNG powered bus.
1998 – QS 9000 Certification
1999 – CNG (Compressed Natural Gas) introduced.
2000 – Euro-I, Engines/vehicles introduced.
2001 – ISO 14000 Environment Management System Certification.
2002 – Exclusive Machine line – 2 for Hino cylinder.
2003 – E-Comet launched.
2004 – 50,000 mark vehicle produced.
PRODUCT PROFILE
Ashok Leyland offers a comprehensive product range with trucks from 7.5 tons GVW to
125 tons GVW. From 19 to 80 seaters a host of special application vehicles and diesel
engines from industrial gensets and marine application.
Product profile can be broadly split into six categories viz. passenger, goods, cargo,
heavies, special Vehicles and Engines.
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38. PASSENGER
ICV Viking MOV
Cheetah Viking Hino Viking AL
Rear Engine Bus Vestibule Bus Panther
Cruiser CNG Bus Viking
Super Double Decker
GOODS
Haulage Comet Bison
Tipper Taurus 6X4 Tractor
Comet 2614 Tusker 3516 Multi Axle Tusker
CARGO
LCV Haulage Cargo 909
Cargo 1614 Tipper
HEAVIES
Haulage Tractor Beaver
Dumper
SPECIAL VEHICLES
Defence LRV Fire Fighter
RIV 4 x 4
ENGINES
Industrial Marine
RESEARCH AND DEVELOPMENT
To offer world-class technology that is relevant and affordable to the Indian customer is
the philosophy that drives R&D at Ashok Leyland. Over the years, this philosophy has
been translated time and again into products that seamlessly integrate international
technology with local needs. "The role of R&D is central in fulfilling the company-wide
commitment to total customer satisfaction" states Mr. R. Seshasayee, Managing Director,
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39. and adds that the increased infrastructural and financial support expresses the company's
determination to become self-reliant in R&D.
Value to the Customer
The immediate R&D priorities are to pro-actively address safety and environmental
issues, harness and adopt technologies that provide value to the customer in an
atmosphere enabling creativity and innovation. Powering those who "engineer
tomorrows" with an enabling infrastructure has been top priority for the company.
Test Tracks
But our R&D is not confined within walls. It extends to the test tracks as well. Rigorous
tests are carried out under stringent simulated conditions that replicate the most
treacherous landscapes.
Vehicle ruggedness and longevity are a prime customer concern, as they directly impact
earnings. Ever conscious of this, Ashok Leyland makes extensive use of a modern CAD
set-up, a comprehensive test track facility (where cobble-stones are calibrated and reset
periodically), accelerated fatigue testing rigs and rigorous durability testing facilities.
Together they ensure that there is a constant improvement in the life and on-road
performance of every make of Ashok Leyland vehicle to hit the roads. Safety, durability,
through our R&D efforts.
Innovations
Ashok Leyland product development successes have come from a keen sense of
anticipation and attentiveness. The company initiated research into alternative fuels well
before legislative debate had even begun in the country. The result was the
implementation of CNG technology ahead of the rest promising a breath of fresh air for
polluted cities.
People
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40. We are close to 12,000 people, moulding and managing technology. And reaching the
benefits of technology to our customers. Offering transport solutions and after-market
support wherever our products operate - which is almost everywhere.
We are spread throughout India, and even outside India. Our tasks vary, so do our skills.
But we are bound together by a healthy chain of interdependence, to deliver value to the
customers.
ENVIRONMENT POLICY
Ashok Leyland is committed to preserve the environment through a comprehensive
environmental policy and a proactive approach in planning and executing the
manufacturing and service activities. The objective of Ashok Leynand’s environmental
policy is to adhere to all applicable environmental legislations and regulations, adopt
pollution preventive techniques in design and manufacture, conserve all resources such as
power, water etc, and optimize its usage, through scientific means, minimuse waste
generation by all possible ways and Reduce, Reuse and Recycle the same through time
bound action plan as well as provide a clean working environment to employees,
contractors and neighbours.
Ashok Leyland has proactively developed its engines to meet the progressive emission
norms, including the Bharat Shage II norms. The Ennore unit was recently identified as
one of the model energy – efficient units by a CII-TNEB organized energy conservation
(ENCON) mission.
From August 1999 “green energy” has been powering the Hosur Plants. Even cooking is
eco-friendly here. The canteen runs on Solar Heaters and food waste becomes fodder to
cattle at a cattle farm at Mathagiri near Hosur.
To the best out of Ashok Leyland’s eco-friendly engine technology, round the year
awareness and action programmes are held at Operators’ meets and service campaigns.
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41. Ashok Leyland has also launched a dedicated mobile emission clinic operating on
highways and at entry points to New Delhi. On an average 250,000 liters of recycled
water is pumped into the garden saving Rs. 1.5 million per annum.
OBSERVATIONS AND INTERPRETATIONS.
SWOT ANALYSIS
STRENGH OF THE COMPANY
1. Good Training System.
2. Good Organizational Climate.
3. High Market Share
4. Skilled Employees
5. Strong Functional Structure
6. Standard Quality Product
WEAKNESS OF THE COMPANY
1. Low margin
2. High price
3. Sales representatives are less
4. There is no proper mechanism to handle the grievance of the customers
OPPORTUNITIES FOR THE COMPANY
1. Due to liberalization, demands for heavy vehicle have steeped up all over
the globe.
2. National market through good advertisement.
3. Company provides better credit facility to dealers.
4. Company introduces promotional programmes
THREATS FACED BY THE COMPANY
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42. 1. High competion
2. Liberal credit policy of other brand
3. Promotional programmes of other brand
4. Complicated national market
5. Good replacement facility if other brands.
FINDINGS:
1. In this organisation there is no flexible manufacturing system.
2. There is no effective utilization of Human Resources.
3. To solve their work related problems QCC (Quality Control Circle) and cross
functional team are made effective. Work instructions, standard operating
procedures, inspection reports, QC charts are effective..
4. In this organisation there is no flexible manufacturing system.
5. There is no effective utilization of Human Resources.
6. To solve their work related problems QCC (Quality Control Circle) and cross
functional team are made effective.
7. Work instructions, standard operating procedures, inspection reports, quality
control charts are effectively utilised by the employees.
SUGGESTIONS
• The company should earmark more money for the advertisement and sales
promotion of its products. It helps to increase the brand awareness and image.
• The company should concentrate on markets in the international arena where its
competitors are less powerful.
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43. • Complaints should be rectified in the shortest possible time. For this a customer
satisfaction cell should be organized.
CONCLUSION
Ashok Leyland is a well known automobile manufacturing company in India.In ennore
first plant, there is a well planned organisation structure being followed. There is a well
integration of all the functional departments which facilitates the use of software like
ERP. Retention of the talented people is essential as they contribute a lot to success of the
organisation.
The catalogued training programme and the resulted report have been of great help to me,
an aspirant manager, to understand the functioning of a major establishment like Ashok
Leyland. The training programme has also revealed many unknown facts about the
working of a manufacturing unit.
BIBILIOGRAPHY
Human Resource Management – Ashley News.
Financial Management – I.M. Pandey
Total Quality Management – Bestersiek
Web Bibiliography – www.ashokleyland.com
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