organisation study on kar mobiles

ORGANISATION STUDY ON KAR MOBILES LIMITED 1

ORGANIZATION STUDY

ON

Kar mobiles limited

Submitted in Partial fulfillment of the requirement for the award of the Degree of

Master of Business Administration

SUBMITTED BY,

Name : Anjali. Gangadharan

Reg. No : 09P35J0119

Specialization : HUMAN RESOURCES

Partner Institution : ACHARYA LEADERSHIP AND RESEARCH INSTITUTE

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Prof. ANIL KUMAR Mr. V. MURALIDHAR

Centre for Participatory and Online Programs

Bharathiar University

Coimbatore – 641 046

(Month & Year) : DECEMBER 2010


DECLARATION

I hereby declare that this project work titled ORGANIZATION STUDY is a record of

Original work done by me under the guidance of Prof. ANIL KUMAR and that this project

work has not formed the basis for the award of any Degree / Diploma / Associate ship /

Fellowship or similar title to any candidate of any University.

Signature of the candidate

Name : Anjali. Gangadharan

Reg No. : O9P35J0119

Course with Specialization: MBA, (Human resource)

Date : Signature of the Guide


ACKNOWLEDGEMENT

I would like to express my gratitude to Acharya Bangalore B-school and my teachers and my guide

Prof. ANIL KUMAR also thankful to my external guide Mr. .V. MURALIDHAR, of KAR

MOBILES LIMITED (Bangalore) whose direction, assistance, and guidance have been invaluable

for the project. I wish to thank staff for their constant support.

I particularly like to extend my thanks to my seniors and colleges and friends who

supported me during the project.

Anjali. Gangadharan


The industry is transforming and the boost in demand will see the emergence of several new

players in the industry. The vast market for auto components, and the diverse products and

technology involved ensures a place and a role for many. At the same time, the entry of several

global auto mobiles manufacturers. Will bring in more regulation into the industry and see

pruning of the spurious market. Among the smaller players in the unorganized segment, this

implies moving away from being standalone companies, to entering into either contract

manufacturing or being ancillary units. The newly defined rules are specialization, development

and delivery that hold the key to success in the auto component industry.

According to the investment commission of India, India is among the most competitive

manufacturers of auto components in the world. India is also becoming a global hub for research

and development (R&D) .Companies like Daimler Chrysler, Bosch, Suzuki and Johnson controls

have set up development centers in India.

Auto manufacturers including GM, Ford, Toyota, etc. as well as auto component manufacturers

have set up international purchasing offices (IPOs) in India to source for their global operations.


INDEX

S.NO TOPICS PAGES NO

1 INDUSTRY PROFILE 8

2 INDUSTRY GROWTH 10

3 FOREIGN AQUISITION 13

4 PROSPECTS 14

5 COMPANY PROFILE 16

6 HISTORY 17

7 NATURE OF BUSINESS 19

8 OBJECTIVES OF KAR MOBILES

20

9 VISION 21

10 MISSION 21

11 ORGANIZATION STRUCTURE

22

12 DEPARTMENT DETAILS 25

13 SWOT ANALYSIS 67

14 FINDINGS 72

15 SUGGESTIONS 74

BIBLEOGRAPHY 76


Indian auto component industry is estimated at US $ 9 billion in 2006. Industry has the resources

to manufacture the entire range of auto products required for vehicle manufacturing,

approximately 20000 components; here the entry of global manufacturers into India during the

1990’s enabled induction of new technologies new products improved quality and better

efficiencies in operations which effectively acted as a catalyst to the local development of the

component industry.

Estimates by the department of heavy industries, government of there are over 400 large firms

who are part of the organized sector and cater largely to original equipment manufacturers

(OEM).

10000 firms exist in unorganized sector that operates in a tier format.

Firms in this segment operate in low technology products and cater to tier 1 and tier 2 suppliers

and also serve the replacement market.

Around 4 % of the company operating in the auto component segment cater to 80 % of the

demand emanating from (OEM’’s).

This auto component industry manufacturer’s components fall into six broad product categories:

1. Engine parts = (piston ,piston rings , engine valves , fuel pumps ,carburetors and

bimetal bearings )

2. Electrical parts =(starter motors ,generators and spark plugs)

3. Transmission & steering = (gears, steering gears, & systems, wheels, clutch plate & disc).

4. Suspension & braking = (leaf springs, shock absorbers, brake assembly & facing).

5. Equipments = (head light ,& dashboard instruments)

6. Others = (sheet – metal parts, pressure disc castings).


Auto components product segments

Engine parts 23%

Others 36% Electrical parts 7%

Steering parts 23%

Equipments 8 %

Suspension and braking parts 11%

Revolutions

Automobile revolution began with the appearance of automobile manufacturing, about the year

1890. By that time Europeans and North Americans possessed the technology required to

produce and successfully operate a mechanically powered road vehicles.

A taste & a demand for such a device could than be created building not only on two generations

of public acceptance of railways , but also on the widespread interest in a more recent

mechanical device ,the bicycle .


The opening stages of automobiles production and marketing required nothing new in the form

of business organization, factory operation, or selling methods. Nor did it require large sums of

capital of large numbers of workers .yet, ultimately the growth of this industry would bring

amazing changes in all these areas. Revolutions usually do not announce themselves at their first

manifestations.

Industry Growth

The production of auto ancillaries was estimated at us $10 billion in 2005-2006 and as been

growing at a robust 20 % per annum, since 2000.

Exports of auto components have been strong growing at 24% per annum since 2000.This

growth in exports is sustained for another 5 yrs will see India’s auto components exports will

touch us $ 5 billion by 2011 from us $ 2billion at present.

Till the 1990’s the auto component industry was solely dependent on the domestic automobiles

industry to drive the demand for ancillary products. This composition of the market how ever is

undergoing radical changes with global outsourcing gaining momentum. In recent times, exports

has emerged as a significant driver of growth and the demand emanating from global OEM’s and

tier 1 manufacturers has opened now opportunities for the auto component industry in India .At

the same time a bright out look for the domestic automobiles industry also offers significant

growth potential given the fast rising Income levels with a rapidly growing middle and high

income consumers.

Investments

Since 2000 the auto component industry was recorded an investment level of Rs 18 billion and

attracted us $ 530 million in terms of foreign direct investment.


Investments in this sector have been growing at 14 % per yrs. In 2005- 06, investments touched

us $ 4.4 billion, and are expected to grow significantly in future. The investment commission set

a target of attracting foreign investment worth us $ 5 billion for the next 5 yrs to increase India’s

share in the global auto component market from the amount of FDI currently coming into the

industry. The changing perception of global auto makers is however fast altering the scenario.

With less than 1 % share in the global market, India has tremendous potential to emerge as a

supply base. This changing business scenario’s is leading to an inevitable out consolidation with

in the industry .The take over of Kar mobiles by RANE Engine and of Gero auto by Uma

precision is few instances.

How ever, such mergers & take over’s will be few and far in between in the auto components

industry unlike the churn out anticipated in other emerging industries – the principle factor being

the vastness of the market and the range of products that need to be delivered .Rather than

domestic consolidation, the general trend at present is for the large auto component

manufacturers to establish a global presence. Top auto components manufacturers have already

set up base in the global markets, especially in Europe. Overall there have already been 16

acquisitions; with 6 made in 2005.The industry is the third highest, among the Indian industry

after IT and Pharma, in acquiring oversea assets. These acquisitions have largely been in Europe

and the USA. This trend has been possible as the auto ancillary industries in these countries have

been collapsing thus making it affordable to acquire these companies.

Nevertheless, this will provide a base for Indian companies to access the European &American

markets.

Indian auto component companies are also setting up bases in other emerging economies, who

are potential competitors, for instance, Sundaram fasteners green field facility in Zhejiang and

Bharat forge’s joint venture with the Chinese automotives major FAW Corporation. Another

auto component manufacturer’s with pla

ns to enter china is PMP components which intend to set up a sourcing base to establish it as a

low cost supplier.


Foreign acquisitions by Indian companies

Indian co Acquired Country

Bhart forge Carl Dan peddling laves Germany

Federal forges imatra kilsta ab Sweden

CDP alumni umtechnik Germany

Scottish stampings ltd Scotland

Mother son woco group

Sumi G&S kunststofftech Germany

Gmbh

Armtek Auto GWK UK

New smith Jones Inc USA

Zelter Germany

Sundaram Bleisthal productions Germany

Fasteners Gmbh

Cramlington forge UK

CDP Gmph Germany

EL forges Shakespeare forgings UK

TVS Autolec RBI Auto parts SND Malaysia

BHD


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


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

The industry is transforming and the boost in demand will see the emergence of several new

players in the industry .The vast market for auto components and the diverse products and

technology involved ensures a place and role for many.


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


HISTORY

Kar valves limited was been out of an electric supply under taking in the old Maharaja’s state of cochin under the name of cochin state power & light corporation limited .This company was started in the year 1936 & was engaged in distribution of electricity .In 1971 this business was nationalized so the company received compensation from the government and the share holders decided to invest in a new business activity.

The company was named as “Kar valves limited” and incorporated in the year 1972 under the Indian companies Act with a licensed capacity of 1.5 million valves per annum .Mr.LL.narayan laid the foundation stone on 30 th Aug 1973 and established as private sector organization and started as a manufacturing unit.

Sri. V.p Aghoram was appointed as the managing director of the company in 1972. The company commenced its commercial production in the year 1975 and the first invoice was made on 12-3- 1975 to m/s convest private ltd, Delhi. Large valves for diesel loco applications and export came into focus .This success led the company to expend its licensed capacity from 1.5 millions to 5 millions per annum .In 1981 , the company set up a 100% export oriented unit at Tumkur on 08.9.1983 the name changed as Kar mobiles ltd.

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

Rane group of companies:

Inception in the year 1929as a trading house. Strategic technical alliance.


Access to best technologies. Group turnover of 273 million usd for the year 2008-09. Serves a variety of industry segments: passenger cars, multi utility. Vehicles, light commercials vehicles, medium & heavy commercial vehicles. Farm tractors, three wheelers, two wheelers, stationery engines.

Why the name Kar mobiles

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

Kar mobiles stand for:

K = knowledge

A= application

R= reliability

M=motivation

O= opportunity

B= brilliance

I= innovation

L=leadership

E= excellence

S= service

Nature of the business carried


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

Background and inception of the company

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

M.A.N Mirrless black stone Pielstick Ruston Wartsila diesel

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


Kar mobiles ltd Bangalore

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

Objectives of Kar mobiles

The company in its continuous quest for excellence seeks new frontiers delivering best of breed products that meet global quality standard and adopts innovative techniques to further improve customer service.

1. To be punctual to work to reduce absenteeism, not wasting time. 2. To be punctual at work.3. Sorting tools and documents at right place in a clean way.4. Helping others in work and other aspects.5. Work efficiently or effectively.6. Think constructively.7. Act friendly.8. Risk cautiously.9. Dress nicely.10. Talk sensibly.11. Invest prudently.12. Judge wisely.13. Maintaining cleanliness in work.14. Increasing productivity.

Vision

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


Mission

The mission of Kar mobiles ltd is to provide:

Superior products and service to customers and maintain market leadership. Evolve as an institution that serves the best interest of all stake holders. Pursue excellence through TQM. Ensure the high standards of ethics and integrity in all actions.

Quality policy

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

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

Internal control system and risk management

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


The company follows line and staff organization. The executive vice chairman who is nominated

by the board of directors, who takes decisions, regarding policy making and decisions in other

important fields, manages the company .The company is headed by Chairman under him comes

the President who in turn reports to the chairman .


Organization chart – corporate

Various functioning departments of Kar mobile ltd:

1. Marketing.

2. Finance

3. Human resources.

Business head

Head marketing

Head finance Plant head P1&TQC

Head IS &MRP Head engineering

Head corp.HR

Plant head P2Head materials

Secretaries


4. Information technology.

5. Productions & planning & control

1. Quality assurance.

2. Maintenance

6. Material

7. Engineering

The main departments in Kar mobiles are marketing department, Finance department, Materials

department, Productions department, Information’s systems and Personal departments. The head

of the department heads each department. The HOD directly reports to the president


Marketing department : =The Kar mobiles ltd. has three types of customers and

there are separate marketing heads for these customers.

Structure of marketing department


The HOD of marketing, reports directly to the president. Below him there are three managers

who are in charge of OEM, replacements and exports. There are managers and executives below

the three managers of respective departments. Original equipment manufacturers marketing or

OEM markets deals with customers like TATA, MARUTHI, and MAHINDRA etc.

Replacements marketing deals with the dealers of KML. Exports fully take care of the exports

and foreign customers of the company. The company supplies:

1. New product to existing customers.

2. Existing products to new customers.

3. New products to new customers.

HOD – MAARKETING

OEM marketing

Replacement marketing

Exports

Rail and defense

STU’S and trading

OEM and replacement


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

The customers give a drawing of a particular product to the company. The drawing is then

forwarded to the engineering departments. They will decide the process and cycle time for the

product .Then it is send to the costing department where the cost of product is fixed. This will be

forwarded to marketing department to fix the profit margin of the product .The president, HOD

marketing and respective functional heads will be the final decision makers. After that a quote is

given to the customer. And if it satisfies the customer they will release a purchase order for the

product. The company participate in various international exhibitions, meetings people at higher

levels by DGM, various magazines are the different Medias used by KML to market the

company.

2006-07 2007-08 2008-09 % Increase

2007-08

% Increase

2008-09

Sales valves

Volume increase

Price

Increase

/(decrease)

670,354 670,354

35,210

149,950

855,514

(46,088)

126,130

-

5.25

22.37

-

(5.39)

14.74

Total sales 670,354 855,514 955,556

smj

1. Volume increase

2. Sales valves.

3. Price increase/decrease


Country wise export valve

Countries 2006-07 2007-08 2008-09

USA

UK

SINGA/MALAYSIA/HONG

GERMANY

UAE

THAILAND

Others

171210

21224

826

92910

9296

458

37264

251213

31378

0

122009

6802

757

45820

290955

22278

364

83157

10735

3159

59738

Total 333,188 457,979 470,386

2006-07 2007-08 2008-09


2006-07(24%)

2008-09(41%)

2007- 08(35%)

Clients / customers:

DOMESTIC OVERSEAS


Ashok Leyland

Bajaj Tempo Ltd

Bharat Earth Movers Ltd

Cummins India Ltd

Diesel Locomotive Works

Escorts Tractors Ltd

L&T John Deere

Mahindra& Mahindra Ltd

Maruti Udyog Ltd

Same greaves Ltd

Tata Engg.&Locomotives Co .Ltd

VST Tillers & Tractors Ltd

GM EMD,USA

HATZ, Germany

Lister Petter Ltd, U.K

Lombardi SRL, Italy

Mirrless Blackstone, U.K

Steyr, China.

VEGE, Germany

Wiscon, U.S.A

Federal mogul, U.S.A

Strategic goals


By 2008- 2013:-

SG1 -Achieve sales 15% CAGIR

SG2- Achieve 15% PBT

SG3- Increase Export Turnover to 60% of sales

SG4- Reduce internal rejections

Premachining < 1 %

Machining < 1000 PPM

Strategic Initiatives (SI)

SI 1 Enhance NPD Capability

SI 2 Reduce Cost

SI 3 Improve Quality and delivery performance

SI 4 Enlarge Export Business

SI 5 Challenge Deming Prize


Finance departments: - Finance who reports directly to the president

there are two departments under finance department. These departments are headed by Sr. Asst –

costing and senior manager – accounts. Under these there are executives for the consent works.

Overall Finance department structure

Head finance corporate

Head finance plant

In charge payroll &treasury

In charge excise & customs

In charge bills payable

In charge costing TA bills

In charge society

In charge fitment coupons


The finance department structure in detail:

The main functions of the department are to:

Daily routine accounting.

Preparation of statutory compliance.

Issue of payment.

Monthly P&L.

Review with AOP.

Quarterly preparation of P&L.

Quarterly audit as per SEB and published in the results in newspapers.

Preparation of P&L and balance sheet and arrange for yearly audit.

Replying for internal audit queries.

Filing of IT returns.

Business head

Head corp. finance

Head finance P1 In charge bills payable &TDS

In charge bills receivable & reconciliation

In charge liaison


When the raw materials are purchased the stores department will hand over the Chelan and bill

along with materials receipt number to the finance department. The bill will be verified with

purchase order and if there is any difference a debit note/ credit note will be raised the payment

will be released to the suppliers on or after the due date.

For meeting expenses of various departments there is an expense format and it has to be filed and

get signed by HOD then forwarded to finance department where it is verified and sends to

cashier for release of cash.

Accounting policies:

During the year , company has exercised the option to adjust to the cost of fixed assets / foreign

currency monetary items translation difference account as contemplated in the amended

Accounting Standard 11 in respect of exchange differences relating to long term monetary items.

Impacts on the accounts for the year due to the change are NIL.

Human resources department :-

Human resource development : - Training programs are conducted throughout the year for

employees on

Attitudinal changes.

Skills development.

Quality control.

Cost consciousness.

Behavioral changes.


Purpose :-To achieve attendance management and welfare.

Roles: -

To maintain time office activities.

To provide temporary operators/ apprentices as per plan.

Ensure employees relations.

To comply with all legal compliances.

To handle the operators performance appraisal.

Allowances /benefits to workmen / employees

Dearness allowances

House rate allowances

Conveyance allowances

Hazard allowances

Special allowances

Heat allowances

Helper allowances

Staff allowances

Lunch allowances

Attendance allowances

Leave travel allowances

Uniform allowances

Stitching allowances

Washing allowances

Canteen allowances

Children education allowances

Leave facilities

National and festival holidays


Festival advance

Salary advance

Educational facilities

Annual award for attendance

Man of the year award

Long service award

Annual gift for production

Medical reimbursement

Incentive scheme

Promotion policy

Death relief fund

Meritorious award

Accident benefit

Incentive for family planning

Retirement benefit

Dearness allowances

It has been agreed continue the existing FDA of Rs 1450 for the settlement period without any

change or modification per month corresponding to cost of living index of 2300 points which

will be treated as irreducible dearness allowance the existing personal pay (i.e. 2000 + 1550) will

continue for those workmen/ employees confirmed on or before 30.06.1996.

Workmen or employees who confirmed after 1.7.1996 will be entitled for personal pay of Rs

1550 /- only. The variable dearness will be paid at the neutralization rate of Rs. 2.50 per point

from 2301 points.


Shift allowances

Shift allowances be paid in the respective shifts provided by the workmen have worked for a

minimum period of half a day ( 3 hours 45 min) in the said shift.

Shift allowances payable will be as follows:

For shift commencing at 2.00p.m to 10.00 p.m Rs 7 / per shift worked.

For shifting commencing at 10.00 p.m to 6.00a.m Rs 22/ per shift worked.

Shift allowances will not be taken in to account for the purpose of calculating provident fund,

gratuity and bonus.

Staff

Total number of employees – 770

Management staff – 138

Temporary operators – 205

Apprentices – 107

Diploma operators- 52

Contract lab our – 90

Operators- 178

Staff allowances: -

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


Eligibility conditions of employees:-

Regular attendance with late coming of maximum of 3 occasions not exceeding

cumulative total of 20 minutes in a month.

Leave taken even with prior permission such as authorized leave, special leave etc, are

not eligible.

Uniform allowances:-

All confirmed employees covered by this settlement would be provided with uniforms of good

quality, detailed as below:

Workmen/ staff employees: - Providing 3 sets of uniform per annum.

Canteen: - Canteen facility provided on concession – and mutually agreed to deducted Rs .1/- per

day of attendance of employees from their salary.

Employment opportunity

It is agreed that in the matter of fresh recruitment the management will have absolute right to

make recruitments from whatever source it may deem fit. However , due regard will be given to

the application of one direct dependent (son /daughter )of this existing workmen / deceased

workmen ,provided subject to availability of vacancy and the candidate satisfying all the

requirements for the job and qualification as laid down by the management. Further no

contemporaries will be employed concurrently at any point of time.

Leave facilities: -

Leave facilities are:

Earned leave.

Casual leave.

Sick leave.


Earned leave: - It can be availed at the rate of 1 day each on 7 occasions / 2 days each on 3

occasions in calendar year, with at least one day’s prior notice.

Casual leave:- Casual leave entertainment will be 9 days per annum who have completed 6

months continuous service in a year.

Sick leave: - Sick leave entitlement for non – ESI covered employees will be 7 days per year and

4 days special sick leave per year will be granted to all the employees.

Awards

LONG SERVICE AWARDS

SERVICE AWARD

10 years continuous service Titan watch with service certificate

15 years continuous service 140gms silver plate with service certificate

20 years continuous service 4gmsgold coin with service certificate

25 years continuous service 8 grams gold coin with service certificate

30 years continuous service 10 grams gold coin with service certificate

35 years continuous service 12grams gold coin with service certificate

Promotion policy

Employees / unionized staff will continue to be considered for promotion as per the existing

promotion policy. Fitment in the new grade consequent on promotion will be subject to the

conditioned that the promoted workman / employees do not cross the senior employees in the

new grade, except for employees who have got converted to staff/ reclassified .In such cases, the

existing practice of maintain the wage parity between the junior and senior workman / employees


will continue till disparity is rectified. In case of promotion, the decision and placement will be at

the discretion of the management.

Management has also informed the union it will come out with new promotion policy within 3

months from date of signing of this settlement for discussion and conclusion.

Maintenance of discipline at the workplace

The workmen and the union have agreed to work for the shift hours excluding lunch

break.

The workman shall not stop their machines in between the working hours.

They honestly and sincerely work for the entire shift hours without wasting time.

Workmen shall also work any where within the line or any line wherever he is deployed

by the supervisor.

Workmen shall adhere to multi skills and multi machines manning

The workmen shall not get out of the factory premises without prior notice.

Workmen shall not loiter within the factory premises unnecessarily and waste their time.

Operators shall set their machines.

Operators shall do tool grinding / forming, when ever necessary supervisors will also

assist.

Operators have to do regular optimal checks, TPM/KAIZEN .Suggestion scheme multi

machines manning, 5s and safety.

Retirement benefit

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

services of the company.


Human resources process and various policies

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

Man power planning.

Sourcing of candidates.

Recruitment &selection.

Offer &appointment.

Joining formalities.

Induction.

Probation.

Special situations.

Promotions /increment.

Resignation.

Retirement.

Transfer.

Relocation for new recruits.

Compensation and benefits.

Business & travel rules.

In detail the functions of various topics in the following:-

Man power planning: - Creation of new position at all levels is done & approved by CHRM/VC.

Sourcing of candidates: - It will be done first internally for all position with in company / group.

Services of only approved recruitment consultants will be used for all recruitment.

Recruitment & selection: - Women candidates will be considered on par with male candidates for

all positions.

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

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


Joining formalities: - A comprehensive database will be created for all new employees and will

be updated regularly as it is essential for all administrative requirements.

Induction: - Structural orientation program me will be organized for all new employees.

Probation: - Here probation period is for 6 months for all the new employees.

Promotions / increments: - All promotions will be subject to vacancies existing in organization.

Resignation: - Exist interviews will be conducted in respect of all employees initiated

separation.

Retirement: - I t will be with the prior specific approval of CHRM/ VC and as per established

procedure in exceptional cases.

Compensation & benefits: - It will comply with the laws of the land.

Higher education: - It is permitted in the organization if any employee is interested to go for

higher education but issue of NOC is required for pursuing.

Various steps followed in the various processes are as follows

Recruitment & selection

Standard: - Recruitment & selection practices will be consistent fair transparent merit based and

stand up to objective external scrutiny.

Process: -

Understand job requirements.

Shortlist candidates.

Schedule interview.

Conduct interview.


Offer and appointment

Standard: - As this represent the final and most critical stage of selection. Objective information

will be obtained through references from external sources to confirm internal evaluation of

candidates fit to the job.

Process:-

Reference checks.

Medical tests.

Verification of certificates.

Letter of appointment.

Induction

Standard: - It will be such as to instill commitment, enable new employee to network with

colleagues and settle down quickly.

Process:-

Induction.

Briefing and orientation.

Induction kit.

Mentor / guide.

Resignation

Standard: - Process will be in place to collect, analyze and constructively use the feed back

obtained from employees at the time of separation.


Process:-

Notice period.

Treatment of employees, who leave without giving notice.

Exit interviews.

Leaving formalities.

Full & final settlement.

Service certificate.

Withdrawal of email ID

Retirement

Standard: - It is a major shift in an employee’s professional life.

Process:-

Retirement.

Notice of retirement.

Token of appreciation.

Counseling & assistance.

Exit interview.

Leaving formalities.

Union

There is a union functioning in the organization with which every 4 years they do settlement for

this they conduct meetings with the management . Even if they have any disagreement with any

of the employees or operators/ workers/ with management policies they solve these issues when

these meetings happen.

Generally these unions are formed for the over all development and to take care of the welfare

activities of the employees (workers) here management staffs are not included. Here no as such


counseling department is functioning under HR head but they handle all the problems during

meeting with the union.

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

They have a suggestion committee.

QC (quality control) circles.

QC stories.

QIT ( idea generation which is based on team performance )

Every year team performance assessment systems are their.

IT department: - This is one of the main departments of KER mobile ltd.

Without which the functioning of all the other departments may come to stand still. This

department helps in various functions. The structure of IT department is as follows;

IT department structure :

President

Senior manager

In charge IT


The various applications used here are as follows

SAP

OFFICE 2002

OFFICE 2007

OFFICE 2010

ADOBE READER

Various operating systems are:

SAP

WINDOWS XP

WINDOWS VISTA

Functions performed here are:

Functions

Data base server AD server

Payroll TDS Mis MRP Common portal (Collection of data of all users)

Semantic back up (For storage purpose of data)


Functions in various departments

Accounts

Engineering

Human resources

Is department

Electrical maintenance

Purchase department

NPD (New product development)

PPC (production planning & control)

Production

Quality

Sales (marketing)

IS helps in various cases like:

Time saving

Fires

Flexibility creation

Data storage

Cost of reduction to an extend

Safety

Company’s centralized data center is at Chennai.

The various SAP services are:

Email internet


Isms

Facility management

Material management

Sales and distribution planning

Production planning

Quality management

Plant maintenance

Finance and costing

HR payroll

For marketing coupon monitoring system for sales promotion

Databases of employees are maintained

At company level each person as a head called CHAMPIONS

SAP- logical storage location etc

Production, planning & control

Production process:

It is used to determine production levels for product groups. This is based on sales forecasting

and is used to raise or lower inventories, stabilize production & planning and allow the launching

of new products on to the manufacturers range of products. Process planning determines the

sequences of operations required in the manufacture of a product or its components. Estimating

is to determine prices and predicting costs including manufacturing lead times and production


costs. Production costs include materials, labor and general overhead costs needed to

manufacture the end product. The data for this is supplied from purchase files, route sheets and

accounts records.

Production department structure

Senior manager- engineering

President

Managers Engineers Executives

Line supervisors

Operators / workers


The main functions of these departments are as follows:-

Design and development of valves according to the requirement of the customer.

Optimization to aid in meeting customer expectation / requirements.

Design and development of samples and submission in time.

New process development change in Engineering.

Process improvements, documentation of process, cost inputs for plant 1.

Carry out process improvements for quality improvements and cost reduction.

carry out design reviews to enhance operational

Product profiles:-

Range: -More than 600 types of valves developed over a wide range of applications.

Product: - KML specializes in supply of valve to manufacturers of large engines like

M.A.N

Mirrless Blackstone

Pielstick

Ruston

Wartsila diesel

Product classification

Engine parts Piston , piston rings, engine valves, fuel

pumps, carburetors, and bimetal bearings

Electrical parts Steering gearings gear and systems, wheel,

clutch plate and disc.

Transmission and steering Gears, steering gears and systems, wheel ,

clutch plate and disc

Suspension and braking Leaf springs, shock absorbers , brake assembly

and facings


Equipment Head light and dashboard instruments

Others Sheet –metal parts, pressure disc castings.

The range of products manufactured, with each broad product segment having different market

structure and technology, has negated any possible concentration of the market in a few hands.

The market is so large and diverse that a large number of players can be absorbed to

accommodate buyer needs. However, there are a selected few companies that have integrated

their operations across the value chain. The key to competing in this industry is though

specialization by product –type, and integrating operations across the related area of

specialization.

The regional base of auto components manufacturers is mostly concentrated in the west, north

and south of India. The regional concentration of auto component manufacturers has been

dictated by the emergence of auto mobile manufacturers in these regions. The setup of Tata

motors, Bajaj, Mahindra & Mahindra and TVS in the 1950s & 1960s laid the foundation for the

auto component manufacturers in the west and south, whilst the entry of Maruti during the 1980s

created the base in the north.

Valve:-


It is an ancillary unit. It is used in internal combustion engine. An engine holds a pair of valves,

one inlet and one exhaust. Every four stroke engine whether petrol or diesel, one requires

internal combustion called IC valves. In any engine per cylinder two valves to be there, one for

admitting the combustible charge into cylinder knows as the inlet valve and the other to dispel

the burnt gases to the atmosphere through the silencer knows as exhaust valve.

The valve is alloyed steel forging, the most usual alloying element being Nickel, Cobalt,

Chromium and Silicon. Some of the most popular valve steels are as follows:-

1. EN-52

2. FN-59

3. EN-51 etc.

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

Valves material:-

Low carbon

Martens tic valve steel

Austenitic valve steel

Stainless steel

Nickel alloys

Surface management

Hard chrome plated

Tuff tried

Phosphate


Production process : - The company manufacturers valve only after receiving the orders from its

customers. The production departments start its work when it receives order from marketing

department. According to customer requirement engineering department make sketch or model

with measurements. After customer satisfaction they fix the deal and the process begins in

material departments.

Bar cut De bur Bar grinding End touch

Forging

Heat treatment

Oil treatmentHear-treatment Straightening

Machine shop


Bar cut:

At first, the raw materials are taken from the stores, in bar cut process they cut according to

customer’s requirement. It includes thickness of the product, size, length etc.

De bur process :

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

Bar grinding:

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

End touch :

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

Forging process:

In FG process a high voltage will be applied to one end of the bar. Due to voltage and force, a

bulb will be formed at this end and it will be pressed to give required share.

Heating treatment :

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

Oiling treatment:

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

Straightening: In heating process valve becomes bend due to distortion but vehicles require

only straight valve so for becoming straight the valve, straightening process will be applied.

Above all procedure is done in forge shop. After forge shop valve will go into the machine shop

for final finishing, cleaning, polishing, marking, correct measurement and packing.


Product development facilities : Significant portion of the group’s turnover invested in

research development simulation techniques and exhaustive testing mechanisms implemented

regarded as the industry standards.

Bar to bar process (BIMETAL):- Bimetal is used for increasing the length of the valve.

If any vehicle requires a long length then starting material of valve will be high alloy and ending

material will be of long alloy. The main aim of this process is to reduce the cost of valve;


The following will be explained with the help of a flow chart which is as follows

Head pin Stem pin

Bar cut

Debur

Bar grinding

End touch

Friction welding

Bar grinding

Wet end

Deep de bur

Bar cut

Debur

Bar grinding

End touch


Quality assurance department:-

Structure of the department:

Quality objectives:-

Company level data, customer requirements and business requirements are the basis for

finalizing quality objectives. A CROSS FUNCTIONAL TEAM consist of members from every

department will discuss based on the various inputs, company quality policy and finalizing the

year objective, during every financial year – end.

7 QC TOOLS ADOPTED BY THE ORGANIZATIONFOR CONTROLLING QUALITY

OF THEIR PRODUCT

Pareto chart

Plant 1

Head plant

Product audit Process audit Raw material

Gauge Materials lab Customer complaints


Cause and effect diagram

Histogram

Stratification

Scatter diagram

Control charts

Check sheets

Quality assurance facilities:-

Hardness testers – Rockwell & Vickers

Automatic specimen polishing machine

Spectrophotometer

Metallurgical microscope

Tensile testers

Micro profile projectors

Tool- maker’s microscopes

Roundness testers

Surface roughness testers

Dial calibration testers

Cylindricity testers

Magnetic particle inspection

Ultrasonic testers

Hardness testers

Maintenance department: This department also comes under

production head only. Here for assets there is civil maintenance .There are various activities

performed here. Now the structure of maintenance department is as follows;

Maintenance department structure:-


Department is headed by a manger. In KML they follow both breakdown and predictive

maintenance these are time based maintenance and condition based maintenance.

In KML they do sewage treatment where in the segregate the chemicals with water and these

waters are reused for gardening purpose. The max breakdown so far recorded is 4 hrs and above

and they are trying to the keep the machinery up time by 98%.

Costs incurred are:

1. Repair and maintenance cost

2. Reconditioning of old machines

Plant head

Plant head maintenance

Utilities Shop in charge

Forge shop Machine shop


3. Machinery spares and services

4. New machine procurement

Preventive maintenance is based on manufacturer’s recommendation and also based on past

experience.

OEE (overall equipment efficiency) are calculated losses can be predicted.

Procedures for tool maintenance system are:

The objective of this procedure is

1. To maintain tooling’s properly

2. To support the production to achieve the targets on time

3. To provide valuable service to the production department.

Purchases /Materials department : This is one of the departments in Kar mobiles ltd. This

department deals with the overall dealings of raw materials in the organization.

Structure of purchase department

Purchase manager

President


The purchase department or materials department is headed by senior manager – materials who

reports to the president. There are two plants (plant 1 and plant 2).There are also four

departments under materials department on each plants. Senior executives are responsible for

each activity. The purchase department is in – charge of all purchases made by the company.

Head of the concerned department will inform purchase department about the requirements. It is

in charge for the purchases of raw materials for the manufacturing of valves.

Corporate head

Plant 1 Plant 2

Purchases

Consumable stores

Raw materials

Sub contracting Sub contracting

Raw materials

Consumable stores

Purchase


They will be given a three month prior intend by the production, planning and control

department which includes the require quantity of raw material and days with in which it as to be

available. Then the department will place the purchase requisition to the suppliers. When the

goods are received it is given a GR number (goods receipt number) and is transferred to stores.

The user will raise the indent in the system about the quantity required and given reservation

number for the required raw materials. Based on the order the materials will be issued. The

company has a storage capacity of 7000 items in their department.

The lead time for imported materials is 6 months and materials reorder level is calculated using

SAP. Approximately there will be 80- 90 tons of order is placed. Materials are released based on

first – in – first out basis.

Major suppliers are:

Star ware India ltd.

Kalyani carpenters.

Jigar marketing pvt ltd.

Hall mark steel pvt ltd.

Carpenter technology (us).

Thyssen Krupp (Germany).

Mitsui (Japan).

In canal pvt ltd.

The stores consist of direct materials i.e. raw materials and indirect materials which consist of

consumables, mechanical and electrical spares.

Engineering department: Engineering department in KAR

mobiles as various functions. This is one particular department which takes care of the whole


technical functions of the organization. It is headed by president followed by many other

functional heads to carry out their activities .Now the structure of engineering department is as

follows;

Structure of engineering department

President

Head engineering


The main responsibilities of this department are as follows:-

1. Translation of customer drawing into plan.

2. Assess capacity of the machine.

3. New product development.

4. To procure equipments/ machinery from local/overseas.

5. To handle the equipments.

6. Method of manufacturing.

7. Machine building.

8. Designing and drafting of tools.

In charge ME forge shop

In charge ME Machine shop

In charge capex and machine build projects

In charge tooling

In charge Machine building and tryouts mechanical

In charge design and drafting

In charge tool room In charge tool crib design & drafting

In charge new product development

Design & dep’t

Testing capabilities


9. Capital expenditure.

Based on the customer requirements the engineering department translates the customer drawing

in to plan and they try to assess the present capacity and method of manufacturing and try to

procure the required equipment and design the dice which are designed in – house/ procured

outside. The company uses the normal drafting software for designing the product .Nearly 230-

240new products are developed in a year.

NEW PRODUCT DEVELOPMENT – KML

Dedicated team of engineers

Structured NPD process in place

CFT approach

Design reviews

Design & process FMEA

CAD software – CAD 2000. pro E

Capability to co – design

Can leverage REVL’s facilities and capabilities.

Design and development capabilities:

Centralized R&D and product engineering function responsible for customer interaction

and product design.

Specialists in IC engines, CAE & CAD application.

NPD process aligned to ISO /TS 16949:2002 requirements.

Concepts like QFD, design reviews adopted from Japanese practices.


Software capabilities – AUTOCAD, PRO –E & analysis.

Testing capabilities:

Endurance test done for concept proving and design validation.

Power , SFC in the engine and wear &distortion on the product are measured

Valve temperature measurement can also be done based on customer requirement.


S= strengths

1. Recognized as a medium &large valve manufacturer.

2. Strong presence in locomotives segments.

3. High brand equity in served markets.

4. Excellent relationship with key customers.

5. Vast dealer’s network & field force.


6. Technical collaboration with TRW Inc U.S.A.

7. Export oriented plant at Tumkur.

8. Specialization in valves.

9. Practice of TQM resulting continuous productivity gains.

10. Capability to manufacturer large valves.

11. Skilled manpower.

12. Wide range of products at industry level.

13. Experience in handling overseas customers.

14. The company as wide dealers network and field force spread across around the

world.

15. Specialization in valves.

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

17. Provide effective information support.

18. Research & development to efforts to upgrade products /process have continued to

yield good results.

19. Adhere to strict quality controls.

W=weakness

1. Inadequate focus on cost reduction.

2. Lack of process robustness.

3. Limited knowledge of large valve manufacturing.

4. Limited knowledge of large valve markets.

5. Low investment in technology up gradation.

6. Highly sensitive raw materials.


7. Inability to meet the requirements.

8. Low productivity.

9. Inadequate failure.

10. Communication gap/increasing low volume requirements.

11. Changing product or market mix.

12. Poor process capability.

13. Inadequate focus on exports.

14. Poorly maintained machines.

15. Weak in technological innovations.

16. Lack of pride in workmanship.

17. Insensitivity to customers.

18. High wage cost.

19. Inadequate systems.

20. Low competencies.

21. The company is exposed to cyclical downturns in the automotive industry.

22. Dependence on original equipment manufacturer’s.

23. The company is lacking up funds in idle assets there by resulting in improve cash

management.

24. Longer operating cycle resulting in increased working capital requirements.

25. Due to increased competition and pressure from OEM customers especially in

passenger car segments, the company product prices may come down in future which

may have an adverse effect on profits of the company.

O= opportunities

1. India has accreted the effects of global slump and continues to grow at a healthy 7.8 %.

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

manufacturing and exporting.


3. Many global automobiles manufacturers have set up bases here and actively pursuing

sourcing from here .This provides good opportunity to component manufacturer for

accelerated growth.

4. Outsourcing by valve manufacturers in high cost countries.

5. Increased outsourcing by international customers.

6. Growth opportunities in after market.

7. The continued attraction in Indian auto component industry as an outsourcing hub

presents immense opportunities of growth.

8. Win market share from high cost competitors in over seas market

9. Exploit large & growing domestic two wheeler market.

10. Participations in global out sourcing.

11. Manufacturing /trading of related engine components.

12. CNC machining.

13. The company is exploring growth opportunities while retaining current customers who

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

14. Significant export opportunities may be realize through diversification of export basket.

T= threats

1. Dumping from china & cheaper imports from other low cost countries.

2. More competition since there are no growth opportunities for MNC’s elsewhere.

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

4. Volatility in commodities and exchange rates.


5. Price competition from other emerging countries.

6. Increasing domestic competition.

7. Volatility in commodities & exchange rates.

8. Limited growth rate in the after market as a result of enhanced durability of engine

valves.

9. The presence of superior products in the replacement market.

10. Volatility in commodity prices steel and other inputs.

11. Currency fluctuations.

12. Competition from Italy, Argentina, China, Taiwan.

13. Imports pose price based competition in the replacement market.

14. Due to increased competition and pressure from OEM customer. Especially in passenger

car segments. The company’s product prices may come down in future which may have

an adverse effect on profits of the company.

15. The major portion of the company export receivables are denominated in US dollars

while most of the input costs are incurred in Indian rupees & Japanese Yen .The

strengthening of Indian rupee with respect to USD could adversely impact the

profitability of export sales and this situation could continue if the Indian rupee continues

to appreciate against USD.

16. Further slowdown in the domestic economy may reach in lower off take by OES and

institutional customers.


The First Indian Company to sign a vendor partnership with General Motors Manufacturing in

technical collaboration with TRW Inc, USA Client list featuring reputed brands like Miff less

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

excellence further.


Kar Mobiles Limited is part of the RANE Group, a world class automotive components

manufacturer recognized as a preferred supplier to major OEMs in India and Overseas. With

over 3 decades in the manufacture and supply of Internal Combustion Engine Valves, Kar

Mobiles is TS16949 certified, practicing TQM as a way of life. At present we are looking for

experienced professionals with a passion for leadership to drive operations at our manufacturing

plants in Peenya and Tumkur.

Some measures to improve the current scenario of the organization:

Need to improve its investment strategy

Need to improve the marketing strategies of the company

Need to promote export import for hike in profits.

Need to bring lot more innovative strategies into action.

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

developmental activities.


The Quest towards Profitability

While capital and management needs for manufacturers of different sizes differ, the basic principles

applicable to every business remain true for manufacturing processes both large and small. The common


challenge for any manufacturer is to find a way of producing as many items at the lowest cost possible to

ensure maximum profitability, which is what sustains the continued operation of any business.

Economies of Scale

Large-scale operations benefit from economies of scale. By buying raw materials in bulk, a business

could get contracts for a lower price, reducing the cost of material per unit of goods produced. Expanding

the scale of one’s operation has the same result – lower cost of production for each product made.

Economies of scale can also be obtained in the area of marketing. The more products are sold, the wider

the range at which advertising cost can be spread over.

Technology and Competition

Having lower cost of production is an edge against competitors, particularly for a business that produces

goods whose price factors much on their appeal to customers. Competition in this category of goods has

the effect of lowering the price of the merchandise. In general, competition can also drive innovation, and

encourage efficiency resulting to newer products that are better and more diverse. For any business, it is a

constant challenge to capture a part of the market, and keep or increase that share relative to competitors.

Many factors can lead to the failure of a business; one of these is failing to keep up with technology.

With all these measure an organization like KAR MOBILES LIMITED can achieve its desired

goals and success and can also sustain in the market in the long run …..


1. KAR MOBILES JOURNALS.

2. ANNUAL REPORTS OF KAR MOBILES LIMITED.

3. GOOGLE WEBSITE

4. BUSINESSS MAGAZINES.


5. BUSINESS TIMES NEWS PAPRES ETC...

organisation study on kar mobiles

Documents