INTRODUCTION
Ashok Leyland is a well known automobile manufacturing company in India. Ashok
Leyland believe that its historical success and future prospects are directly related to
combination of strengths.
ABSTRACT The report provides a consolidated preview of the functional activities of Ashok Leyland,
Hosur Unit I.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.
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. 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 5 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. ORGANIZATION STRUCTURE 6 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 MotorsWith 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. VISION 7 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 8 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
3.Standardization. GEMBA MISSION N7i+1 New 7 initiatives 1. Increase in the number of GEMBA 2. 5s [SEIRI,SEITON,SEISO.SEIKETSU,SHITSUKE] 3. EEI (Effort and Ergonomy index) 4. CMI (Cost management initiative) 5. Inventory Initiative 6. Critical machine uptime 7. Quality 8. 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
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 programme 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 Institut
Francais du Petrole, the French institute for IC engines. ORGANISATION STRUCTIURE
12
MANAGING DIRECTOR
EXECUTIVE DIRECTOR
SENIOR DIRECTORGENERAL MANAGER ASST. GENERAL MANAGER DEPUTY GENERAL MANAGER
ASST. MANAGER
SENIOR OFFICER
OFFICERDIVISIONAL MANAGER MANAGER SENIOR MANAGER DIVISIONAL MANAGER 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 followsPERSONNEL & ADMINISTRATION Departmental Structure
-MT 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. 14 CHIEF SECURITY OFFICER DIVISIONAL MANAGER IR Sr. MANAGER HR DGM MEDICAL OFFICER -MANAGER-DIVISIONALMANAGER-ASST. MANAGER-OFFICERS -ASST. MANAGER -MT -OFFICER SOURCES OF RECRUITMENT The following are various external sources of recruitment:
Consultancies
Campus recruitment
Lateral entries1. CONSULTANCIES
The department heads where requirements are needed informs to the HR department
about the requirement. The concerned persons 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 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 InterviewTRAINING Training is an on-going process aimed at capability-building of the employees at all levels. Training programme is classified into
• Skills
• Knowledge
• BehaviourWORKMEN 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 16 corporate level. Training for senior/middle level management is done on the
following basis: 1. Technical
2. Behavioral
3. FunctionalDEVELOPMENT ACTIVITIES The following are the developmental activities:
TEI – Total Employee Involvement
CFG – Cross Functional Group
QC – Quality Control
SS – Suggestion SchemeEMPLOYEE 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
Scholarship schemes
Recreation facilitiesPERFORMANCE 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 awareness18
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
• Financial problems
• Lack of growth
• Job clarityATTRITION 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
-KANBANJIT
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 time20
• -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 requirements 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. PRODUCTION Departmental Structure 22 DEPUTY GENERAL MANAGER
CONNECTINGROD, CAMP SHOP& GEARSDIVISIONAL MANAGER- SHOP-I CYLINDER BLOCK & CYLINDER HEAD ASST. GENERALMANAGER-ASSEMBLYSr. MANAGER Sr. MANAGER Sr. MANAGER Sr. MANAGER ASST. GENERALMANAGER-MACHINE SHOP-VASST. MANAGER ASST. MANAGER
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
end milling brushing of holes assembly of bearing caps injection flood washing leak test water ways counter boring,reamingENGINE 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 24
• 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
• 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 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. 26 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, 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 STAGE 16: FES mounting, Electric fitments (male-female connecting process) STAGE 17: Bumper fitment, FES wiring, 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 test3. Vibration test4. Torque tightening5. Oil level and water level checking6. Electrical components checking7. Air leakage test8. Grease level checking9. Power steering hose routing and clamping10. Road test QUALITY CONTROL QUALITY: 28 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
• ReputationTQM: 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.
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 employees potential to contribute to quality and environment by progressive up gradation of their knowledge and skills as appropriate to their functions.
3. Seamless involvement from suppliers and dealers in the mission of the company to address customers changing needs and protection of the environment. 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 DEFECT SAMPLING PLAN: 30
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 anotherset of samples will be taken if it goes beyond the fixed level then reject or elseaccept the products.
INSPECTION: It is also to eliminate, substantially reduce or automate the inspection activity. There are 4 phases of inspection.
• 100% inspection
• Sampling
• Audit
• Identity checkPURCHASED 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… 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, Hosur. 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 32
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. 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 loyaltywhich actually improves the bottom line. It moves
PROBLEM SOLVING METHOD: - 35 ACT PLAN STUDY DO IDENTIFY THE OPPURTUNITY ANALYSE THE PROCESS DEVELOP THE OPTIMAL SOLUTION IMPLEMENT STUDY THE RESULTS STANDARDIZE THE SOLUTION PLAN FOR THE FUTURE 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 organisation. The following are the various types of maintenance:
Predictive maintenance Preventive maintenance Breakdown maintenance Routine maintenance1. PREDICTIVE MAINTENANCE: Predictive maintenance is done on assumption by experience before the occurring or by any symptoms of occurring. 2. PREVENTIVE MAINTENANCE: