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    KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT STUDIES, HARIHAR

    INDUSTRIAL INTEGRATION REPORT

    MANUFACTURING INDUSTRY: BOSCH LTD. INDIA,

    BANGALORE PLANT (DIESEL)

    SERVICE INDUSTRY: ANGEL BROKING PVT. LTD.,

    BANGALORE

    SUBMITTED TO: SUBMITTED BY:

    PROF. E. ANAND Shivi Agrawal (96)

    Sayantani Chatterjee (92)

    Devashish Bajaj (34)

    Nitish Pratap Singh (67)

    Richa Shukla (82)

    DATE OF SUBMISSION: DECEMBER 09, 2011

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    Table of Content:

    Sl no Chapter Page number

    1 Objective of the visit 2

    2 Brief introduction of the companies 4

    3 Bosch Limited 10

    4 Angel Broking Pvt. Limited 24

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    CHAPTER I

    Objective of the Visit

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    OBJECTIVE OF THE VISIT

    The main objective of the industrial visit was to know about the management processes that

    are being practiced in the manufacturing and services industry, to understand how theoperations, resources and people are managed and utilized in an organization, how the supply

    system of a company works and how the demand is met. We have had theoretical workshop

    in our classes about the Balanced Scorecard model and Business Excellence Model. And the

    main purpose of our visit was to acquire practical knowledge of these two models and also to

    map how these models are actually used by the company in their day-to-day working.

    To have an interface with the industry.

    To understand the practical applications of the Business excellence model in

    manufacturing and service industry.

    To be able to relate the theoretical with that of the practical aspect of Balance Score

    Card Model and Business Excellence Model.

    To make us understand the roles and responsibilities of different departments in an

    organization and also their inter-relation amongst themselves.

    The visit also helped us identify the sector and department which each one of us

    would like to join.

    The visit was helpful because it developed our interest in some parts of business

    which we were unaware of.

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    CHAPTER II

    Brief Introduction of the Companies

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    BRIEF INTRODUCTION TO THE COMPANIES

    ABOUT BOSCH GROUP

    Bosch is celebrating its 125th

    anniversary in 2011. The company was set up in Stuttgart in

    1886 by Robert Bosch (1861-1942) as a "Workshop for Precision Mechanics and Electrical

    Engineering." The special ownership structure of Robert Bosch GmbH guarantees the

    entrepreneurial freedom of the Bosch Group, making it possible for the company to plan overthe long term and to undertake significant up-front investments in the safeguarding of its

    future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by RobertBosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by

    Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership

    functions are carried out by the trust.

    The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

    The Bosch slogan 'Invented for Life' is part of its long tradition, through which it

    communicates the Group's core competencies and vision, that include technological

    leadership, modernity, dynamics, quality and customer orientation.

    The Bosch Group is a leading global supplier of technology and services. Some 300,000

    associates generated sales of 47.3 billion Euros in the areas of automotive and industrial

    technology, in the areas of automotive and industrial technology in fiscal 2010. The Bosch

    Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regionalcompanies in over 60 countries. If its sales and service partners are included, then Bosch isrepresented in roughly 150 countries. This worldwide development, manufacturing,

    and sales network is the foundation for further growth. Bosch spent some four billion Euros

    for research and development in 2010 and applied for over 3,800 patents worldwide. With all

    its products and services, Bosch enhances the quality of life by providing solutions which are

    both innovative and beneficial.

    ABOUT BOSCH LIMITED

    Bosch has been present in India for more than 80 yearsfirst through a representative officein Calcutta since 1922, and from 1951 through its subsidiary Bosch Limited (then Motor

    Industries Company Limited).

    Bosch is also represented by five other group companies in India.Robert Bosch Engineering and Business Solutions Ltd., a 100% subsidiary of Robert

    Bosch GmbH, has been present in India since 1998. Today, it has emerged to become one of

    the largest Bosch development centers outside Germany. It provides end-to-end engineering

    and technology solutions for all the business sectors of automotive technology, industrial

    technology, consumer goods and building technology.

    Bosch Rexroth India Ltd., that was established in 2001 (by acquiring majority stake in

    Rexroth established in 1974), is an expert in drive, control and motion technologies. Itprovides a complete range of products, systems and services for the Industrial Drive &

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    Control segment. It serves customers though its manufacturing facilities and service centers

    in Ahmedabad and Bangalore.

    Bosch Chassis Systems India Ltd. established in 2005, (by acquiring majority stake inKalyani Brakes Ltd. established in 1982) is amongst the leading manufactures of Hydraulic

    Brake Systems and Anti Lock Braking Systems meeting the stringent quality norms of many

    leading India and international vehicle manufacturers.Bosch Automotive Electronics India Private Ltd., is a 100% subsidiary of Bosch Group

    and is engaged in the manufacture and sale of electronic devices and electronic control units.

    The company is based at Naganathapura in Bangalore.Bosch Electrical Drives India Private Ltd. , is a joint venture company. It is based near

    Chennai and manufactures and sells electrical drives for various automotive applications such

    as window lift drive, wiper system, engine cooling fans etc.

    ABOUT BOSCH LTD. INDIA, BANGALORE

    Founded in 1951, Bosch Limited is Indias largest auto component manufacturer and also oneof the largest IndoGerman companies in India. The company generated net sales of Rs.

    6630 crores in 2010. The Bosch Group holds 71.18% stake in Bosch Limited.

    The company is headquartered in Bangalore with manufacturing facilities at Bangalore,

    Naganathapura (near Bangalore), Nashik, Jaipur and Goa.

    Bosch Limited manufactures and trades in all the three major business sectors of Bosch.

    Details below -

    Automotive Technology

    Business divisions: Diesel and Gasoline Fuel Injection Systems, Car Multimedia Systems,

    Auto Electricals and Accessories, Starters and Generators, Energy and Body Systems.

    Industrial TechnologyBusiness divisions: Packaging Machines, Special Purpose Machines

    Consumer Goods and Building Technology

    Business divisions: Power Tools, Security Systems

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    ANGEL BROKING Pvt. Ltd.

    Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has

    emerged as one of the most respected Stock-Broking and Wealth Management Companies in

    India. With its unique retail-focused stock trading business model, Angel is committed toproviding Real Value for Money to all its clients.

    The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock

    Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX &

    MCX. Angel is also registered as a Depository Participant with CDSL.

    Their Business

    Equity Trading Commodities

    Portfolio Management Services

    Mutual Funds

    Life Insurance

    IPO

    Depository Services

    Investment Advisory

    VISION:

    To provide best value for money to investors through innovative products trading investment

    strategies state of the art technology and personalised service.

    BUSINESS PHILOSOPHY:

    Ethical practice and transparency in all our dealings, customer interest over our own, always

    deliver what we promise, effective cost management.

    Values:

    Integrity

    Teamwork

    Quality Mindset

    Entrepreneurship

    Service Orientation

    Passion & Commitment

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    Quality Assurance Policy:

    We are committed to being the leader in providing world class products and services which

    exceed the expectation of our customer achieved by teamwork and process of continual

    improvement.

    CRM:

    Customer is King

    Customer is the most important visitor in our premise. He is not dependant on us but we are

    dependant on him. He is not an interruption in our work but is the purpose of it. We are notdoing him a favour by serving. He is doing us a favour by giving us an opportunity to do so.

    -Mahatma Gandhi

    MILESTONES:

    1997-2003December97: Incorporation of Angel Broking.

    July98: Angel Research Division started.March02: Web enabled back office software developed.

    2004

    April: Incorporation of commodities broking.

    September: Launch of internet trading platform.

    2005

    October: Awarded prestigious Major volume driver award.

    2006July: PMS function launched

    September: Commenced JNF and IPO distribution.

    October: Awarded Major volume driver award.December: Crossed 2500 business associates.

    2007October: Major volume driver award for the third consecutive time.

    November: Crossed Rs.1.5 lakh mark in DP a/c.

    December: IFC acquired 12.35% stake in Angel Group.

    2008

    January: Commences insurance distribution.February: Ranked 1

    stfor registered intermediaries.

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    May: Third party distribution business ramped up.

    September: Ranked 1st on NSE for largest sub-broker network.

    December: Major volume driver award for the 4th

    consecutive time.

    2009

    January: Ranked 1st

    on NCDEX on the basis of turnoverMay: Awarded best Retail Broking House and the largest distribution network by Dun &

    Bradstreet.

    Two analysts won the ET Starmine Analyst Award.

    Major volume driver award for 5th

    consecutive time.

    2010-2011

    November10: Major volume driver award for the 6th time.February10: Angel analyst won three categories at the ET now starmine awards.

    March11: Awarded best contributor in Investor Education & Category Enhancement of theyear. Angel Broking & Broker with best commodity research of the year. Angel Commodity

    Broking Pvt. Ltd. By Bloomberg UTV Financial Leadership Awards 2011.

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    CHAPTER III

    Bosch Limited

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    Bosch Business Excellence Model

    Boschs founder Robert Bosch was a visionary who firmly believed in delivering excellent

    quality. To suit its founders vision the company has been continuously driving change.Bosch was one of the founder companies to implement the Business excellence model. It hasbeen a change driver since 2004.

    Enablers:1) Leadership:

    I. Almost 71% of the Bosch India is held by Bosch limited based in Germany.

    92% of the German company is held by Robert Bosch stifting GmbH which is

    a non-profit organization.

    II. Boschs leaders are some of the most qualified people. Example its research

    department head for diesel system is Mr. Duernholz who is considered to be

    the guru of all diesel engineering.III.The leaders at Bosch follow an open approach in which they regularly

    organize meetings with all the employees. In such meeting they discuss the

    future vision of the company and also adhere to the problems of the

    employees. By discussing the vision with the employees they bring the

    motives of the employees in synchrony with that of the company.

    IV.There are suggestion/complain boxes placed in each department. Any

    employee can write any issue in the same. And the management will conduct a

    thorough research on the same invite the person to discuss on the matter. Thus,

    even the smallest matter is solved. The problem is even discussed in the

    meeting if required and solutions are invited from other employees.

    V. The leaders are futuristic in their planning. The company has already laid a

    comprehensive plan for the year 2018. The expected growth rate, expected

    demand, market condition has already been decided and strategic plans for the

    same has been laid out by the company which include short term and long

    term goals.

    VI.Bosch has a motive of synchronizing the motives of all its stakeholders. This

    they are still in the process of achieving. By doing this they will be able to

    achieve their vision we grow profitably with innovative solutions for our

    customers with a commitment towards our society and environment.

    VII.Bosch has a transparency and no corruption policy. In which any employee

    can complain about anyone on their ethical conduct.

    VIII.The diesel system uses competency mapping to check on the leadership.

    Required training is given to leaders to improve their leadership skills.

    2) Strategy:Deployment of Business Excellence (DBE) in BOSCH led to improvements not only in

    leadership aspects but also strategy management. Business Excellence is facilitating the

    organization to align all its functions towards the Company's vision and mission strategically.This management concept places a strong emphasis on meeting all stakeholders' expectations.

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    i) Corporate strategy: the major tool used by Bosch for implying corporate strategyis the Business Score Card.a) Boschs economic strategy corresponds to the common aim of the Bosch

    Group for innovation, independence and integrity. The cornerstone of Boschs

    activity is to maintain the innovative force which is based on the knowledgeand competence of experienced employees. The aim is to be among the

    worlds market leaders and to be a major player in all of the companys

    business sector. The strategy to obtain this goal is on one hand strong

    marketing of new products and on the other hand ongoing investment in

    Research and Development to innovate continuously.

    b) Efficient sales and customer service also plays a key role in Boschs corporatestrategies. The company understands that customers are their primary reasonfor being and strive to innovate and create value for them by understanding

    and anticipating their needs and expectations.c) Integrity is the third part of Boschs corporate strategies. The company stands

    for a number of values to promote team spirit and to strengthen integrity andethics with the concern for long term performance.

    ii) Business strategy:a) Bosch brand is known all over the world and people associate quality,

    innovation, reliability and financial strength with it. Boschs business related

    policies, plans, objectives and processes are developed and deployed as astakeholders focused strategy.

    b) Boschs future business strategy is supporting growth and reducing cost.Therefore, Bosch is going to expand its manufacturing capacities. To remain

    competitive and to meet the challenge in its environment Bosch directing its

    effort to reduce costs, continuous improve processes in all areas and

    intensively utilise resources.

    c) New market development- Development of solar panels to electrify the smallbuildings have provided the company to reduce its cost effectively. For the

    development of solar plans Bosch has began manufacturing photovoltaic cells

    by acquiring a company named Ersol.

    3) People:

    There are things we can do by ourselves and things we cannot do by ourselves-

    Because we lack the ability or we lack the time,The main thing is to find the right people who can do the work for you.Having the right people in the right places is crucial for the success of our company. -

    Robert Bosch.

    Bosch philosophy has always been to promote trust, creativity, innovative thinking and to

    crate space for the employees to think and act independently. in India the employee strength

    of Bosch is over 11,700 across five manufacturing site, sales and regional offices. The basic

    framework of human resource development in Bosch are as follows:I. Retraining and training existing employees towards meeting challenges arising

    from development or up-gradation of technology.II. Training and developing the younger generation of apprentices/engineers who are

    the future skilled technicians/managers.

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    III. Involving human resources through employee involvement schemes like CIP,BVC, BHS, Quality Circle etc.

    Bosch Human Resource System (BHS):

    A management and support system, is the global change initiative in Human Resources. It

    provides both a framework and direction for strategic and operational HR work. Its goal is toachieve systematic control and optimization of HR processes and organization worldwide.

    Continuous Improvement Programme (CIP):

    A methodical approach of CIP was adopted by Bosch through involvement of leaders,

    known as LeaderCIP. It is a structured improvement process that works with the goal of

    excellence in controlling everyday work, thereby increasing the value contribution. The

    program attained a multifold growth in support functions and provided a platform for leadersand associates to address issues through many CIP workshops, laying the foundation for

    sustainable development. Along with this, a new approach called VSDiA - Value StreamDesign in Indirect Areas, applying Lean (waste elimination)philosophy in indirect processes

    has immensely helped in identifying and eliminating "Non-value adding activities. Whileindirect functions benefitted from LeaderCIP and VSDiA, CIP for direct functions resulted in

    many problems being solved through the Shop Floor CIP drive. In the year 2010, associate

    involvement in improvements also increased through Team Oriented Production (TOP) and

    Voluntary Lernstatt teams.

    Bosch Vocational Centre (BVC):With 50 years of experience in training &development, the Bosch Vocational Centre has

    been instrumental in identifying and tapping an individuals' potential. It has been successful

    in extracting greater efficiency and maximizing employee contribution towards achievement

    of organizational goals. The centre provides good infrastructure, along with the latest

    technologies to cater to the needs of the industry. BVC has produced a record number of 186

    Best Apprentices Award and has won the Best Establishment award, a record 41 times.

    Quality Circle:

    In Bosch, every department has at least one quality circle team which consist of a group of

    employees who voluntarily become a part of the team and choose a problem of theirdepartment. Discussion happens on a weekly basis and they work on the problem and its

    improvement.

    Values for the employee:

    The Company as a constituent of the Bosch Group has always been a value driven company.Many of these values go back to Robert Bosch, the founder. Other values have evolved over

    time. These values have been codified to ensure uniform and common understanding and

    systematic implementation across all Bosch locations and units worldwide. Employees who

    know the values of the Company who have internalized them and who live according

    to them gain confidence and orientation for their daily work. This helps the employees to take

    better and faster decisions, to develop greater initiative and to take on greater accountability

    for their own actions. In the end this gives them greater empowerment and makes theCompany better. The House of Orientation sets out how we see their future development,

    the principles of their approach, and the capabilities that they have and want to exploit forcontinued success in the future. It also contains information on the standards and values that

    motivate them in their daily striving for success and improvement. House of Orientation

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    will help all associates to understand and live the corporate culture a culture that offers

    orientation, reinforces cohesiveness, and creates identification.

    The House of Orientation comprises the following modules:

    These values are:

    1. Future and Result Focus

    2. Responsibility3. Initiative and Determination

    4. Openness and Trust

    5. Fairness

    6. Reliability, Credibility and Legality

    7. Cultural Diversity

    The House of Orientation helps all associates of the Bosch Group to better understand thechanges in the company, to play their part in shaping those changes, and in this way to ensure

    the long-term competitiveness, focuses on product creation and related activities. Best-practice processes and qualified associates allow Bosch to attain excellence in product

    creation and best-in class products.

    4) Partnership and resources:External partnership:

    I. Currently Bosch has a list of regular suppliers. In case of emergency requirement they also

    approach temporary suppliers. In their manufacturing process a few of the supplies are taken

    as random sample and tested upon. In the future Bosch wants to eliminate this process of

    testing of sample supplies as it involves cost and time. They want their suppliers to be added

    to a list ofpreferred suppliers whose quality will be guaranteed. And the cost of the same willbe reduced.

    II. Bosch wants to develop trust between all the stakeholders and the company. It keeps the

    stakeholders regularly informed on the developments in the company and the industry.

    III. Customers are also a part of the stakeholders of the company. To create a brand image of the

    company and to create a long term relationship with the customers Bosch takes a variety of

    initiatives. They are:

    i. They participate in fairs such as Delhi Auto Expo, etc.

    ii. They organize seminars.

    iii. They print newsletters which are sent to the entire customer group

    (companies).iv. They organize tech-day at OEMs. During which the company

    conducts free check up of cars, etc. they inform the user on the ways to

    best utilize the car and how to make it last longer. This action of their

    helps create a good brand image and recognition for the company.

    v. In case of complains they follow the eight D format. In which conduct

    a detailed analysis on the complain and the problem. The problem is

    solved within two weeks time maximum. This time may vary

    depending on the severity of the problem.

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    Internal resources:

    I.All the employees be it the labour or the management all are considered a

    partner to the firm.

    II.The employees are given a safe environment to work in. they in fact have a

    vision of hospital clean inside and garden green outside. This shows the

    quality of employee satisfaction they want to achieve.

    III.Each employee is free to complain/suggest to the management.

    IV.Ergonomic principles are used to get maximum efficiency.

    V.By using solar power in cooking they have been able to create a pollution free

    environment.

    VI.Safety is a major constituent at Bosch. Safety of employees is given maximum

    concentration. In each department one could find a stretcher, fire extinguisher

    etc. the plant is made in such a manner as to have the least harmful effect. All

    employees have been given with required safety equipments.

    VII.The employees are explained the vision goals of the company to better motivethe employees to take part in the process.

    VIII.The layout of the manufacturing unit is currently a mixture of straight line

    layout and process layout. This leads incurring of excessive cost. The company

    has plans to change that to a mixture of straight line and U shaped format of

    manufacturing.

    5) Process, Product and services:

    I. The company has a fixed process for all of its practices. These processes are

    regularly upgraded to suit market demand and change in trend.

    II. CIP stands for continuous improvement process. This is used to achieve

    manufacturing excellence. The labourers who are working at Bosch currently

    are used to the current process of manufacturing. To change their perspective

    and get them accustomed to the new process. Example: the company earlier

    used to manufacture one product on one day and another product on another

    day. With increasing number of customers they shifted to a manufacturing

    process which produced all kinds of product on day. This helped Bosch in

    satisfying the demand of the customers and also reduced finished goods stock.III. The machinery used is continuously improved upon. Obsolete machines are

    used for their spare parts. Older machines are upgraded to newer technology

    thus cutting purchasing cost.

    IV. The end products of the company are changed according to market demand.

    Like, the diesel system which is currently the largest market for Bosch was

    thought to be obsolete to such an extent that the company people themselves

    thought that the product will lose its demand in the near future. But with its

    innovation tactics it was able to surpass that stage and now the company has

    maximum share in the diesel systems market.

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    V. RADAR- This is a system used by Bosch in its decision making process. Key

    resultto be achieved is analyzed. The relevance and usability of the result is

    identified by analyzing the scope, integrity and segmentation. The performance

    is analyzed by studying the trend, targets, comparisons, causes. After deciding

    the key result the approach is analyzed. The approach should be sound andintegrated. After the approach is decided it is implemented systematically this is

    known as Deployment. At last assessmentis done using measurement tools and

    through refinementis done improvement and innovation in practices.

    VI. Continuous Research and Development practices are followed by the company.

    Product is regularly upgraded depending on the changes in law. Example the

    latest update to European emission law requires the cars to reduce their emission

    by certain percentage. So to achieve this Boschs research department has come

    up with new product to reduce the pollution emission.

    6) Customer Results:

    Over the years Bosch is maintaining its outstanding results with respect to its customers.

    I. The claim invented for life expresses not only the core competence of theBosch brand but also stands for the quality and customer benefit of their

    products and services.

    II. Apart from stressing the durability and reliability of their products it signalsthat their purpose is to enhance the quality of life of their customers. Thisimplies a special responsibility felt by the company towards its customers.

    III. Bosch has adequate client diversification in domestic as well as internationalmarket so quality issue becomes extremely important. Thus Bosch has always

    stressed on value added products for its customers.

    IV. To achieve high customer results Bosch also provide quality after sales serviceto the customers.

    V. Customers are intimated by the company regarding any major productdevelopment or technology adopted by the company.

    VI. Bosch considers customers as one of the major valued asset of the companyand thus try to maintain life long partnership with them.

    7) People results:

    People form the base for any organization. For any successful organization it is

    necessary to have an effective work force. To test the effectiveness of people bosch

    uses a variety of methods.

    I. Every leader is given a position based on competency map. The leaders are also

    selected based on this.

    II. People are considered as partners in Bosch. They are fully trusted. From 5 th

    December the company has launched a new initiative in which the bags of the

    workers are not checked. This has attracted immense positive reaction from the

    people. Who have shown it through higher motivation.

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    III. Bosch has an internal training centre, which identifies training needs based on

    performance evaluation system.

    IV. Internal and external training is given to employees. Internal is for soft skills

    development.

    V. Technical training is given to the personnels requiring technical know-how. Incase of technological up gradation in the organization required raining is given

    to personnels.

    VI. Employees have freedom to identify his personal improvement areas and

    convey it to the management. Also the management can also identify any

    required improvement and inform the employee about the same. Employees are

    given training according to needs identified by both.

    VII. Semi yearly assessment is given to all employees, in which effectiveness of

    training is assessed. Lay off is considered only in the most extreme of cases.

    The people are divided into types of performers based on performance. The

    lower performers are selected for training and the exceptional performers are

    given appreciation by ways of incentives, recognition etc.

    VIII. Employees are sent to foreign countries to be trained in acquiring better

    techniques.

    IX. Managers are given a special allowance for exceptional performance and in case

    of in-performance the reason for the same are identified and necessary steps are

    taken. An improvement plan is made by the direct boss and the super boss. Thus

    we see that the overall development of the personnel is taken care of not only by

    the immediate management but also higher management level. This makes the

    employee more motivated to work and improve.

    8) Society Results:

    Social commitment is an essential principle underlying the corporate policy guidelines

    of the Company. Responsibility towards Society and Environment is guided by

    Bosch values, principles of social responsibility, work safety and environment

    protection.

    I. The Bosch principles of social responsibility include - human rights, equal

    opportunities, employment of handicapped people, free choice of jobs, rights ofchildren, relations with associate representatives and their institutions, fairworking conditions, occupational health and safety, clean and safe environment

    with social engagement.

    II. Besides the welfare initiatives within the factory premises, the Company is alsopromoting the interests of underprivileged and impaired sections of society

    through monetary contributions for the social work carried out by charitable

    organizations, old age homes and schools, and participates in women

    empowerment programs bodies.

    III. To sustain cultural values, the Company supports cultural activities through itsfine arts club.

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    IV. During the times of natural calamities like floods, cyclone, tsunami, earthquakeetc., the Company actively supports the affected people through voluntary

    participation and donations.V. The Health & Hygiene, Environment Education, Community Development and

    Vocational Training strategies are deployed through social responsibility models

    that are communicated across the Plant through posters, visual board handouts andguides. The aid in generating large number of volunteers willing to do their best

    towards the betterment of the society.

    VI. Based on the need analysis of underprivileged Society around the Bangalore Plantwhich is in the heart of the city, schools run by City Corporation/Government

    were considered for projects where most of the children come from lower strata of

    the society. The Plant adopted a Primary Government School named

    Munichinnappa School in its neighbourhood and provided renovation of the

    buildings and up gradation of sanitation facilities. A comprehensive health check-

    up camp was organized by the Plant at the schools in the neighbourhood andnearby areas.

    .VII. The Plant supported differently abled people through the organization called

    'Ability in disability Foundation (AID)' and provided raw material to the

    organization that in turn assembles components for the Company. The Company

    recruited around 35differently abled people for light jobs like component

    packaging inside the Plant.

    VIII. Manasi a social service initiative by the women employees of Bangalore Plantwere honoured with appreciation award for CSR activities by the corporate Diesel

    Systems.

    IX. The 'Clean Air' campaign was conducted for students in colleges & schools, auto,cab, and busdrivers and general public in order to bring about awareness on

    environment pollution and various measures to reduce the same.

    X. The Plant has adopted Dubewadi Village in association with KalpataruFoundation, Dubewadi, Trimbakeshwar taluk, which is 50 kms away from the

    Plant.

    9) Key Results:

    Indicators:

    I.The company looks at two levels of results: Short term results and Long term

    results. Long term goal like attaining a turnover of Rs 90 billion by 2018 wasidentified. So short term goal was set at increasing turnover by Rs 20 billion.

    Later on it was seen that after a year the company achieved 40 billion sales

    within one year. So the long term goal was changed to Rs. 140 billion

    II. It follows two supportive strategies viz., BPS leadership trainings and New

    BPS Assessment model help align value stream culture with business Key

    performance Indicators (KPIs)

    III. To achieve total quality management the company trains 25 people every year

    on assessment. These people are trained on how to assess the work of others.

    These people are also sent to other company to assess them.

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    Measures:

    I. In 2009 the company won DB award.

    II. Bosch Bangalore because of its cost cutting strategy has become a head quarter

    for diesel system all over the world.

    III. The company won the NDTV Car & Bike Award for Auto Component

    Manufacturer of the year

    IV. Bosch Apprentices won a total of 170 gold medals and Bosch Vocational

    Centre was declared the Best Establishment for the 38th

    time.

    V. Bosch also conducts internal assessment to continuously analyze itself and its

    performance.

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    Bosch Balance Score Card

    I. Financial perspective

    Productivity strategy(A)IMPROVE COST STRUCTURE:

    2011(qy1) 2010 2009

    Sales 20858 66305 47498

    Of which exports Na 8461 5855

    PBT 4041 12028 7934

    PAT 2744 8589 5906

    Bosch has 85% of its earnings by diesel ( engines and other auto ancillary)

    RETURN ON CAPITAL EMPLOYED :

    In the 2nd Quarter 2011, our sales recorded a figure of 2024 crores or a growth of 22% over2nd Quarter 2010. This has happened primarily due to overall good performance by diesel,

    packaging technology as well as our machine building departments have done well overall.

    (B)OPERATING INCOME :

    2011 2010

    Operating income 35 48

    Sustained shareholders value

    No. of members

    23,589No. of shares held

    31,398,900

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    (C)EXPENDITURES:

    a. During the 1st Quarter of 2011, material cost showed a rise compared to 2nd Quarter2010 from a level of around 54% to nearly 56.6%. This increase is on account of three

    factors, One is the general and sharp increase in raw materials such as copper, steel,

    aluminum, etc.; second one is on account of increase in Euro rate compared to IndianRupee. And thirdly, there was also some amount of mix effect on more of those products

    which have higher material content like starters and generators compared to other

    products. So these three factors led to this increase of nearly 2.5% points from 54% to56.6% as far as this quarter is concerned.

    b. Wage cost, no major thing to report with cost went up by about 18% over previous year2nd Quarter mainly on account of normal increase in salary levels which are affected

    from January 2011. Also increase in wage cost was primarily due to cost of living Index

    as well as our contractual commitment increase that they had agreed. Other than that no

    major changes. They have had to add some people because when turnover grows by 25-

    26% for the first six months the company could not have done it with the same existing

    number of people. So the number of people also has been increased by about 800 to 900people. But all put together against a turnover increase of about 22-23% ranges and the

    employee cost has gone up by about 17.8%.

    c. Depreciation amount has gone up by about 3.5% but far less than the increase in turnover.As they have started increasing our capital expenditures, most of these expenditures

    will get put to use sometime in the 4th

    Quarter of this calendar year. So while they are

    incurring capital expenditure the depreciation cost has still not started hitting them. So

    they continue to enjoy the benefit of lower increase in depreciation compared to theturnover increase. Other expenditure other than material, labour, staff and depreciation,

    these have gone up by only about 2 percentage points largely on account of certain one-

    off items that was there in 2nd Quarter 2010 then not being repeated in 2011 as well as

    certain items not being incurred in the 2nd Quarter. So this overall expenditurecontainment as led to our profit before other income interest and exceptional items going

    up by about 21% compared to the previous 2nd Quarter in terms of absolute amount, it

    has gone up from 270 crores to 329 gross. Other income went up quite substantially

    because of their higher treasury income both on account of higher profit from share of

    marketable securities as well as interest income, etc., So that has led to their profit before

    tax going up by about 29% from 312 crores to 401 crores, a growth of about 29%. Then

    due to lower tax rate this year consequent to some of the treasury income not being

    taxable, as they are in the nature of long-term capital gains, the companies profit after tax

    has even grown higher than the growth in profit before tax. So net profit after tax hasshown a growth of 33% from the 2nd Quarter 2010 figure of 210 crores.

    (D)Actual sales in 2011 is 4097 crores. PBT & PAT have also grown quite well at around 33-34%.

    (E)Earning per share in first half of 2011 was Rs. 176 per share.

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    II. Customer perspective :1. Price:

    (a) Customers are OEMs eg. Tata , Mahindra , Maruti etc, as there business is mainly of Bto B type.

    (b) There products are mainly PF 51,PF 45, PHEK, single cylinder pump , multi cylinderpump,

    A pump and fuel injection pump.

    Thus price depends upon the size of the order and customers specification about

    the product.

    2. Quality:(a) The company follows TQM and EFQM model, and they follow a quality inspection

    system which they apply along their production process, hence they have achieved 0%

    rejection of the order.

    Rejection % = no. of orders rejected/ total no of orders*This is zero for the company.

    3. Partnership:They consider all stakeholders as their partners and they have not entered into legal

    partnership with any of their customers.

    4. Brand:CRISIL has rated it as AAA.

    III.

    Internal perspective:

    1. Process landscape:Source value addition delivery

    Company works on lean excellence.

    Core process- customer management process ( new business, new order)

    1. At service level company goes for post delivery process.2. MSD- improvement on continuous basis. InfoTech in facility management.3. FCM- faculty management process, linked to management.4. For delivery process company works under integrated process.5. Company follows 16949 ISO standard.6. It is a tier 2 supplier. Industrial products manufacturer.7. Manufactures 3000 pumps per day. Time taken 1 to 5 months.

    PF 45-Lead time-15.23 days

    Value added time- 23185 secSize of lot- 20000 per mnth

    PF 51

    Lead time- 26.17 daysSize of lot- 8000 per mnth

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    Scope Of PF 51- NANO, MAXIMO

    PHEK- 98% locally produced components2% components are being outsourced

    Based on Orders Company can make changes in its production level.

    Companys inventory- inventories lying on floor 15.17 days to 34.17 days

    Company works on CIPCONTINUOUS IMPROVEMENT PRACTICE

    Percentage involvement = (associate quality criteria )/ (total associates)

    Total associate = permanent employees + temporary+ OJT

    (It involves commitment, support and involvement of the employees.)

    2. Quality:Company also works on continuous improvement by a quality circle formation, in this

    employees share problems and other tools of cause and effect relationship with respect toproblem solving. It includes 300 teams which conduct meetings on regular basis.

    Company classifies the problems as :

    A- Problems which can be solved by employeesB- Problems involving managementC- Problems which require investment

    These teams have won various awards , on an average each year they bag 20 prizes forYOUNG MANAGER and 1 international award each year.

    Company also works on cellular facility layout (u- shaped) which has made a decrease oflead time of inventory from 26.17 to 23 days.

    3. CUSTOMER MANAGEMENT PROCESS:-Company considers all its suppliers as partners. It focuses mainly on the largesuppliers for building up the relationship.

    4. INNOVATION: Company innovated emplastic i.e. use of plastic instead of aluminum incertain components of the auto ancillary component

    5. LEARNING AND GROWTH PERSPECTIVE:(a) EMPLOYEE COMPETENCY- Company provides on the job training once in

    year to its employees. And after 6 months it checks for training effectiveness.

    (b) TECHNOLOGY: 1. Common rail fuel injector pumps, 2. PF51 diesel efficientpump for NANO.

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    CHAPTER IV

    Angel Broking Pvt. Limited

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    ANGEL BROKING BUSINESS EXCELLENCE MODEL

    1) Leadership:

    I. The companys CEO is Mr Dinesh Thakkar. He is a gentleman who started his career as asub- broker for another company. He with his experience has built the company from scratch.

    He understands the needs and requirements of all the employees. All the higher level

    employees are experienced personnels with exceptional skills in their respective departments.

    II. The company gives every employee the chance to prove their capabilities. The Hr manager in

    fact shared some instances in which some employees had been promoted to higher

    management levels.

    III. The company follows an open door philosophy. The managers, executives can be accessed by

    any of the employees. In fact the HR manager stressed on the point that how much they want

    their employees to speak openly about any problems which is being faced by them. Thecompany personnels also pointed out that they are exceptionally bothered about everyone.

    IV. The organizational structure is well defined and the responsibilities of each individual

    specified. The sales department and service department has been segregated to bring in more

    efficiency.

    2) Strategy:Angel broking has implemented its mission and vision by developing a stakeholder focused

    strategy that takes account of the market and sector in which it operates. The strategiesdeveloped by angel are as follows:

    I. To concentrate on retail centric research with a focus on small and mid capsegment.

    II. Development of branch concept for personalised serviceIII. Maintaining clearance and transparency in all of the dealingsIV. Effective cost management to maintain a substantial profit for their companyV. Development of web enabled back office software helping in quick and effective

    dealings in the terminal

    VI. Innovation and development of Angels own services like Angel Gold and AngelWealth Edge.

    VII. To maintain steady growth of the company in the market, angel is constantlystrategising to improve its network strength.

    Thus by developing these policies and strategies Angel has been able to create the

    highest number of registered sub-brokers on NSE.

    3) People:I. Angel Broking has a Research Division to suggest its clients better opportunities of

    earning profits. Research Division studies the balance sheet, cash flow statement and

    other financial statements of the other companys and suggest the shares of those

    companies to the clients.

    II. One of the values of Angel Broking is Teamwork according to which all the employees

    of the organization are supposed to work as a team and are treated as equal.

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    III. Angel Broking has a separate set of rules and regulations for its clients known as KNOW

    YOUR CLIENT (KYC).

    IV. They adopt a sub-broker contest for its sub-brokers. The sub-broker which gets the

    maximum revenue is awards. This is a kind of motivation for its sub-brokers.

    V. They have a leadership academy. Under the leadership academy are the Productivity

    Jockeys. These Jockeys train a batch of 4 to 5 new recruits, on the basics of broking.

    VI. Angel Broking also has a common training programme on 1 day for all its new recruits.

    For the sales department a Career Progression Programme is organized for 3 days.

    VII. Each employee on joining is given an employee code which is generated within 48 hours

    of joining.

    VIII. Angel Broking has Employee Engagement Programme named SAMPARK is held for the

    employees to promote mutual trust and bond amongst them.

    IX. Angel Broking also has an Employee Retention & Reward Initiative where by two contest

    for its new employees named i) SRINT AND ii) RACE. Under these two contests new

    employees are given a months target to get maximum nu mber of clients. And the one

    who gets maximum number of clients gets a monetary reward.

    4) Partnership and Resources:Angel plan and manage external partnerships and internal resources in order to supportstrategies and policies of the company.

    The partnership policies adopted by Angel are as follows:

    I. Angel is the first broking house in Pan India whose 20% stake has been adopted byThe International Financial Corporation(IFC)

    II. Angel shares a partnership with Birla Sun Life Insurance for its Life InsurancePolicies.

    III. Angel has the highest number of registered sub-brokers in NSEIV. Angel maintains a strong partnership with its internal resources like the fund

    managers and the research analysts so that the company could provide the benefits

    to the customer and also earn profits.V. At present Angel has over 2500 business associates in the market.

    5) Product, Process and Services:I. The company has fixed practice for its services. To provide its services the company has

    developed 24*7 Web enabled back office software.

    II. The company also has the system of Online Trading where by its clients can make use of

    the services of the company from their place.

    III. The company suggest stocks of various other companies based on two criteria: i)

    technical calls. ii) fundamental calls

    IV. The company provides live chat support system to its clients.

    V. Angel Broking has also developed Mobile Trading Software known as Angel Swift.

    VI. Angel Broking has Angel Diet application trading software for its day traders. It also

    has the facility of shortcut keys which facilitates faster access.

    VII. Process:The sales department looks for prospective customers and acquires new clients.

    A KYC form is filled by the sales personnels to get more information about the client.

    The sales personnel bring the document to the back office who open an account for the

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    client. They check the credit background of the client and the amount of money that the

    client wants to invest. They open the account for the client. They give client a basic idea

    about how to invest, and tricks of investing. They maintain a regular contact with each

    client on their account balance and suggest them on how to manage their account. In case

    a client has not been active for some time they contact them on their reason of their

    passiveness and try to give them a feasible solution.

    6) Customer Results:Angel follows the motto consumer is king which has helped them achieve outstanding

    results with respect to the customers. Presently Angel maintains a base of over 838201

    customers and is now one of the top 3 broking houses in India.

    I. Angel focuses mainly on Retail centric research and thus maintains a customerbase that ranges from customer investing Rs. 10,000 to even the Future end

    options customers who deal in crores.

    II. Angel was the first broking house who developed the branch concept to providepersonal attention to each and every customers.III. To follow the company ideal to make our customers smile Angel follows a

    quality mindset to look after customer interests above their own.

    IV. Even the green colour in the logo of Angel signifies customer supportive unit.

    7) People Results:I. The firm has a separate leadership academy to train and develop the people for the job.

    The training is provided to not only new employees but also, the old employees. For the

    new employees they are given basic introduction about the company, and sales

    employees are given a separate three work shop to develop sales skills.

    II. The company provides every employee with a career progression plan. This plan gives

    the employee a clear perspective of their future plans in the company.

    III. The company has a New 30 and New 60 training program. These programs are organized

    by the leadership academy. They are the constant growth program to see constant growth

    of the employees.

    IV. After training sessions the HR department asks the participants to fill a questionnaire

    which has been specifically designed to test the participants learning.

    V. HR department conducts surprise visits to Branches to see the live working of the branch.

    VI. The employees are bifurcated based on their performance into super star, star, back bone 1,

    back bone 2 and struggler where struggler refers to low level of performers and super star

    refers to extremely good performers. The super stars are awarded by being awarded

    incentives and recognition. The strugglers are not laid off rather the reason for their lack in

    performance is identified and training is provided to improve on the same.

    VII. The attrition rate is analyzed and justification for the same is researched.

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    8) Society Results:I. Angel initiated Investor Guidance Series with the launch of seminar in Mumbai and

    announced to conduct 100 such educative and informative seminars all across the country.

    II. Angel also organises Stock Market Educative Program in Top Business Schools of India

    conducted by Top Research Executives of the company.

    9) Key results:I. Indicators:

    1. The company is one amongst the top three brokerage firms.

    2. It has collaboration with Birla sun for the insurance business. Birla is a well known

    name in the industry.

    3. The company is eyeing at not only the companies but also the individual investors.

    4. The company has 100% transparency in all its practices. Every transaction is made

    after getting the confirmation of the client. A record of the telephone call is

    maintained by the company to avoid future dispute.

    II. Measures:1. The company has been awarded major volume driver for 6 consecutive years.

    2. Awarded the best contributor in investor education and category enhancement of the

    year.

    3. The company involves itself in self assessment and identifies key challenging areas.

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    ANGEL BROKING BALANCE SCORE CARD

    FINANCIAL PERSPECTIVE:Market capital: Rs. 725 crore (January 27, 2006)

    Revenue generation: companys revenue generation is by the brokerage it earns

    Revenue earned= percentage of brokerage* amt of money invested

    1. Percentage of brokerage: a. Intraday = .04b. delivery= 0.4c. future/option= depends on negotiation

    Other financial statements of the company were not available as it is not a registered

    company and moreover those statements were kept confidential.

    CUSTOMER PERSPECTIVE:

    a.) B2B: channel sales, acquisition of sub broker, 9000+ franchisee, investment

    more than Rs. 5, 00,000 required

    B2C: investment >10000

    b) Service / relationship: KYCknow your clients. Company gets the forms filled by

    the clients. Provide them a code within 48 hrs of registration and then call up their clients onpersonal basis.

    c) Quality: company works on the policy not to betray your customer for sake of

    achieving targets

    d) Trading channel partners: BANK OF INDIA, ALLAHABAD BANK, DEUTSCHE

    BANK, IDBI, SCB, SBI, HDFC etc.

    e) Value added services for [email protected]

    INTERNAL PROCESS PESPECTIVE:

    18983 Terminals610 VSAT

    898201 customers

    4093 direct employee

    136 branches

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    Equity tradinging NSE, BSE

    Commodity NCDEX, MCX

    Broking Business trading

    Core Business Currency trading MCX

    e- Trading NSE

    Wealth Management and distribution

    Branches

    Life insurance Portfolio management Mutual Fund IPO advisory

    Operation:

    8:30 am - Through conference call (pan India) recommendations are provided for Nifty and

    BSE level.

    9:15 amTrading starts.

    3:30 amTrading ends.

    Every day they are provided with support price, stop loss point, upper and lower resistance

    level.

    Inovation:

    They have various innovative products such as Angel gold.

    Learning And Growth Perspective:

    Training: They provide both on the job and off job the training.


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