1.

INTRODUCTION

An organizational study refers to the complete understanding of an organization in all dimensions.

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. The referred unit is a core limb of Ashok Leyland, the nations pioneering automobile manufacturer.

The study includes the brief study of the core departments of Ashok Leyland, Chennai. Different officials working in various departments have provided very important data in this report. Every effort has been made to understand the functions and activities of various departments as well as the manufacturing process.

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1.1. OBJECTIVES OF THE STUDY

To familiarize with business organization. Getting practical experience regarding the organizational function. To understand the functions of HR, Finance, Production and Marketing departments. To understand the culture in the organization and its effect on employees. To get industrial exposure and experience.

1.2. SOURCES OF DATA

The methodology used for the study is through the collection of primary and secondary data. Primary data Direct observation Live discussion with the managers and the staff members.

Secondary data Annual Reports Business Journals Existing Records Website of the company.

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2. PROFILE OF THE STUDY

2.1. INDUSTRY PROFILE: AUTOMOBILE INDUSTRY HISTORY: In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first automobile to run on roads.This automobile, in fact, was a self-powered, three wheeler, military tractor that made use of steam engine. The range of the automobile, however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the steam engines made them very heavy and large, and required ample starting time. Oliver Evans was the first to design a steam engine driven automobile in the U.S. The automobile industry finally came of age with Henry Ford in 1914 for the bulk production in cars. This lead to the development of the industry and it first begun in the assembly lines of his car factory. The several methods adopted by Ford, made the new invention ie) car, popular amongst the rich as well as masses. According to the history of automobile industry U.S, dominated the automobile markets around the globe with no notable competitors. However, after the end of Second World War in 1945, the automobile industry of other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period, beginning in the early 1980s, the U.S automobile industry was flooded with foreign automobile companies, especially those of Japan and Germany. The current trends of the Global automobile industry reveal that in the developed countries the automobile industry are stagnating as a result of the drooping car markets, whereas the automobile industry in the developing nations, such as India and Brazil, have been

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consistently registering higher growth rates every passing year for their flourishing automobile markets.

INDIAN AUTOMOBILE INDUSTRY:

India is one of the fastest growing automobile industries in the world. After 1960, the automobile industry saw rapid growth and many automotive manufacturers started production. The automobile industry in India is the seventh largest in the world with and annual production of over 2.6 million units in 2009. In 2009, India emerged as Asias fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nations roads. A well developed transport network indicates a well developed economy. For rapid development a well-developed and well-knit transportation system is essential. As Indias transport network is developing at a fast pace, Indian automobile industry is growing too. Also, the automobile industry has strong backward and forward linkages and hence provides employment to a large section of the population. Thus the role of automobile industry cannot be overlooked in the Indian economy. Indian automobile industry includes manufacture of trucks, buses, passenger cars, defence vehicles ,two wheelers etc.., The industry can be broadly divided into the car manufacturing, two-wheeler manufacturing and heavy vehicle manufacturing units. The major car manufacturers are Hindustan Motors, Maruti Udyog, Fiat India Pvt. Ltd, Ford India Ltd., General Motors Pvt. Ltd., Honda Siel Cars India Ltd., Hyundai Motors India Ltd., Skoda India Pvt. Ltd., Toyota Kirloskar Motor Ltd., to name a few. The two wheeler manufacturing is dominated by companies like TVS, Honda Motorcycle & Scooter India Pvt. Ltd., Hero Honda, Yamaha, Bajaj etc.., Page | 4

The heavy motors like buses, trucks, defence vehicles, auto rickshaws and other multiutility vehicles are manufactured by Tata-Telco, Ashok Leyland, Eicher Motors, Bajaj, Mahindra and Mahindra etc..,

INDIAN AUTOMOBILE MARKET:

Many foreign companies have been investing in the Indian automobile market in various ways such as technology transfers, joint ventures, strategic alliances, exports and financial collaborations. The auto market in india can boast of attractive finance schemes, increasing purchase power and launch of latest products. Some vital statistics regarding the automobile market in India has been mentioned below: India ranks 2nd in the global two-wheeler market India is the 4th biggest commercial vehicle market in the world India ranks 11th in the international passenger car market India ranks 5th pertaining to the number of bus and truck sold in the world.

HEAVY VEHICLES MARKET: Heavy vehicles market in India comprises of trucks, machines, ambulances and school buses. The popular heavy vehicle brands in India are Volvo, Eicher, Tata, Telco, Ashok Leyland and Swaraj Mazda. Following are the major players in the Indian Heavy Vehicles Market: Tata Motors is the largest automobile manufacturing company in India that manufactures a wide range of heavy vehicles adhering to world class standards. It is the market leader in commercial vehicles in all the segments, be it heavy vehicles, medium size vehicles, small vehicles, buses or defence vehicles. The heavy vehicles manufactured by Tata Motors have highly developed braking structure, high ground authorization, better direction competence and a muscular body. The advanced engine imparted to these heavy vehicles makes them a class apart from the other

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heavy vehicles running on the Indian roads and Highways. Tata Motors leads this segment with a market share of 61%. Ashok Leyland is an exclusively heavy vehicle manufacturing company situated in Chennai and was initiated in the year 1948. It is one of Indias biggest producers of heavy vehicles such as trucks, buses, military vehicles and also the second biggest commercial vehicle firm in India heavy vehicle division with a market share of around 27%. Ashok Leyland is also renowned for producing auto spare parts and engines for marine and industrial submission. Eicher Motors was initiated in 3rd September, 1960. The first firm to manufacture the first tractor in India. The indigenously manufactured tractor was introduced in the Indian market straight from Eichers Faridabad factory. The history of the firm can be traced back to 1948, when Goodearth Company was established for vending and repairs of imported tractors in the nation. Swaraj Mazda, a tie up between Mazda and Swaraj Enterprise, Swaraj Mazda represents advanced Indian expertise and manufacturing. The firm has Research and Development improvement edge on international scale. The firm manufactures various products such as Bus, Ambulance, Trucks etc. The modern automobile market in India has been considering key issues in the process of growth: Customer care, and not just service Domestic as well as multi-national investments Searing through cut-throat competition Road safety Anti-pollution norms Co-ordination with government to enable advancement Used vehicle trade The future of Indian automobile market is bright as it looks forward to manufacturing and implementing new innovations such as electric cars as provided by Reva, alternate fuels like CNG and LPG and probably customized internet automobile orders. Page | 6

3. COMPANY PROFILE:
Ashok Leyland has been a major presence in Indias 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 manufacturing. They are one of the Indias 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 Indias commercial vehicle industry, molding the countrys 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. 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 Europes 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.

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The subsidiary holdings are Ashley Holdings Ltd., Ashley Investment Ltd., and Ashok Leyland Project Services. The chief competitors of the company are; Mahindra Volvo Tata Motors

With a commanding strength of the about 12,000 employees the company is looking forwards to enhance the scope 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 Avias truck business rechristened Avia Ashok Leyland Motors. 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 industrial, marine and genset applications, Ashok Leyland offers a wide range of products. Ashok Leyland has seven manufacturing plants Ennore Plant, Chennai. Hosur Plants Unit I, Unit II and Unit II A. Alwar, Rajasthan. Page | 8

Bhandara, Maharashtra. Pantnagar, Uttarakhand

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 Indias 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. The Five AL Values are: 1. International 2. Speedy 3. Value Creator 4. Innovative 5. Ethical

FACILITIES: The company has seven manufacturing locations in India 1) Ennore, Tamilnadu 2) Hosur: Unit 1, Tamilnadu 3) Hosur: Unit 2, Tamilnadu 4) Hosur: Unit 2A, Tamilnadu 5) Alwar, Rajasthan Page | 9

6) Bhandara, Maharashtra 7) Pantnagar, Uttarakhand Ashok Leylands Technical Centre, at Vellivoyalchavadi in the outskirts of Chennai, is a state-of-the-art product development facility, that apart from modern test tracks and component test labs, also houses Indias one and only Six Poster testing equipment. The company has an Engine Research and Development facility in Hosur. The new plant in the North Indian state of Uttarakhand at Patnanagar is set up at an investment outlay of Rs.1200 crores. This plant is expected to go on stream in the year 2010 to cater mainly to the North Indian market taking advantage of the excise duty and other tax concessions. The facilities have been so designed as to accommodate further expansion in terms of capacity and future models. At full capacity utilization, 75000 vehicles will roll out of the Patnanagar plant. The company has signed an agreement with Ras Al Khaimah Investment Authority (RAKIA) in UAE for setting up a bus body building unit in the Middle east. CLIENTS (Not exhaustive): Indian Army. US Army. Honduras Armed Forces (HAF). Tamilnadu State Transport Corporation (TNSTC). Metropolitan Transport Corporation (MTC), Chennai. State Express Transport Corporation (SETC), Tamilnadu. Kerala State Road Transport Corporation. Maharashtra State Road Transport Corporation (MSRTC). Andhra Pradesh State Road Transport Corporation (APSRTC). Parveen Travels. Sharma Transport.

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VISION Achieving leadership in the medium/heavy duty segments of the domestic commercial vehicle market and a significant presence in the world market through transport solutions that best anticipate customer needs, with the highest value -to-cost ratio. MISSION -Identifying with the customer. -Being the lowest cost manufacturer. -Global benchmarking our products, processes and people, against the best in the industry. 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.

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ORGANIZATION CHART OF M/s. ASHOK LEYLAND LTD.

MANAGING DIRECTOR MAMANGIN

ED
CFO INTERNA L AUDIT

ED
PRODUCT DEVELOPM -ENT

ED
HR

ED
&
COMPANY SECRETARY

SPECIAL DIRECTOR BUSINESS PLANNING

ED
CONSTRUCTION & ALLIED BUSINESS

SPECIAL DIRECTOR
PLANNING & PORTFOLIO MGMT

WHOLE TIME DIRECTOR & COO

ED
MFG

ED
MKTG

ED
PRODUCT PLANNING

ED
INTERNATIONAL OPERATIONS

ED
SALES & SERVICE

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ORGANIZATION STRUCTURE OF M/s. ASHOK LEYLAND LTD. (AUTHORITY FLOW) MANAGING DIRECTOR

WHOLE TIME DIRECTOR

EXECUTIVE DIRECTOR

SPECIAL DIRECTOR

GENERAL MANAGER

DEPUTY GENERAL MANAGER

ASST. GENERAL MANAGER

DIVISIONAL MANAGER

SENIOR MANAGER MANAGER DEPUTY MANAGER

ASST. MANAGER

SENIOR OFFICER

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FUNCTIONS OF THE MAJOR DEPARTMENTS SELECTED

The major functional areas of the unit and the major departments which oversee those areas are catalogued as follows: a) HR Department b) Finance Department c) Marketing Department d) Production Department. A brief review of each department and its activities as follows:

OFFICER

a) HUMAN RESOURCE DEPARTMENT OF ASHOK LEYLAND LTD.

HUMAN RESOURCE MANAGEMENT Human resource management is defined as the managing function of employees, developing and compensating HR resulting in creation and development of human relations with the view to contribute proportionately to the organizational, individual and social goal.
VALUE STATEMENT

We consider our employees as our most valuable asset and are committed to provide full encouragement and support to them, to enhance their potential and contribution to the companys business.

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DEPARTMENTAL STRUCTURE:

ED- HR

DIRECTORMGMT DEVELOPMENT CENTRE-HOSUR

GMMANAGEMENT DEVELOPMENT

DGM-HR

AGMOFFICE SERVICES

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DIVISIONAL MANAGER- IR

SR.MANAGER- HR

MEDICAL OFFICER

CHIEF SECURITY OFFICER

-MANAGER -ASST. MANAGER -OFFICERS

- ASST.MANAGER - MGMT TRAINEE

OFFICER

FUNCTIONS OF HR DEPARTMENT: 1) HR ACQUISITON Recruitment Selection Training and development Organization development Performance appraisal Incentives and benefits Creating motivation environment Empowerment and participation HR Mobility

2) HR DEVELOPMENT

3) PERFORMANCE AND COMPENSATION

4) MOTIVATION

1) HR ACQUISITION RECRUITMENT

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Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. SOURCES OF RECRUITMENT The following are various external sources of recruitment: 1. Consultancies 2. Campus recruitment 3. Lateral entries 1. 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 Trainees DETs - Diploma Engineer Trainees ITI- Industrial Training Institute

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 Interviews Page | 17

DEPARTMENTAL STRUCTURE: MANAGING DIRECTOR

CFO Pricing Manufacturing Units

Treasury Ennore Direct Taxation Indirect Costing and Budgeting Hosur-2 Hosur-1

Corporate Consolidation

Hosur-2A

FSG
( Finance account Service Group)

Alwar Bhandara

Explore finance

Pantnagar

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DEPARTMENTAL STRUCTURE (AUTHORITY FLOW) MANAGING DIRECTOR

CHIEF FINANCING OFFICER

GM-FINANCE

DGM-FINANCE

AGM-FINANCE

DIVISIONAL MANAGER

SENIOR MANAGER MANAGER DEPUTY MANAGER

ASST. MANAGER

SENIOR OFFICER

OFFICER

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DEPARTMENTAL STUCTURE:

CHIEF OPERATING OFFICER HEAD-DEFENCE SBU

HEADENGINE BUSINESS

ED- MKTG

HEAD- FULLY BUILT SOLUTIONS

HEAD- MKTG & CUSTOMER GROUPS

HEAD- PARTS & CUSTOMER SUPPORT

HEAD- VEHICLE SALES & SERVICE

HEAD ( CG LCV )

HEAD MARKETING SERVICE

HEAD TQM

HEAD-PARTS

HEAD-AMC RECON VEHICLES

DGMCUSTOMER SUPPORT GROUP

HEAD- KEY ACCOUNT STU & PROJECT SALES

HEADLCV

HEADPROJECT S

HEAD- TECH .SERVICE

HEADPRICING

HEADSALES ADMIN

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HEAD DISTRBUTION & INVOICE

REGIONAL MANAGERS

ASHOK LEYLAND- DISTRIBUTION NETWORK:

PLANT

MARKETING

CUSTOMER GROUP

REGIONAL SALES OFFICE

DEALERSHIP

CUSTOMER

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PRODUCT PROFILE (Not Exhaustive): Ashok Leyland offers a comprehensive product range with trucks from 7.5 tons GVW to 49 tons GVW(Gross Vehicle Weight). From 19 to 80 seaters in passenger transport, a host of special application vehicles and diesel engines for industrial gensets and marine application. Product profile can be broadly split into five categories viz. Buses, Trucks, defence vehicles, special Vehicles and Engines. BUSES LYNX BS-II Cheetah (Front engine) Airport Tarmac Coach Cruiser Stag BS-II TRUCKS 4x2 Haulage models 4x2 and Multi-axle Tipper Multi Axle vehicles DEFENCE VEHICLES Short Chassis Bus Topchi field Artillery tractor Stallion 6x6 SPECIAL VEHICLES Hippo tractor Beaver tractor Beaver Haulage ENGINES Genset application Marine application Page | 22 Stallion Mk III Tipper Rapid Intervention Vehicle Hippo Haulage Hippo Tipper Field artillery tractor Long Chassis Bus Stallion truck fire fighting Comet 4x4 Ecomet Tractor Viking BS-II Viking BS-III Vestibule Bus Viking CNG BS-III Double Decker 12 M Bus-BS II Viking AL Panther (Rear engine) Falcon (Front engine)

d) PRODUCTION DEPARTMENT OF ASHOK LEYLAND LTD.

Production is an organized process of manufacturing/producing goods and services through the use of input resources of men, materials, money, machine, methods. PRODUCTION MANAGEMENT STRATEGIES: Long range strategies Effective management of technology. Innovation in product management and process technology. Globalization in industry. Goodwill inside and outside the organization. An aggressive marketing strategy and risk taking ability. Location and layout. Product selection and technology. Capital selection and investment. Flexible strategy of production. Standardization of design. Economy of size and variety.

Short range strategies

PRODUCTION SYSTEM: Ashok Leyland employs a continuous production system, making use of special purpose machines and produces standardized items in large quantities. Characteristics Standard products are manufactured. Small work in progress in involved. More maintenance is required. Minimum cost of production per unit Division of labour is made more efficient.

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DEPARTMENTAL STRUCTURE:

EXECUTIVE DIRECTOR - MANUFACTURING

PLANT DIRECTOR

GENERAL MANAGER - MANUFACTURING

DGM -MFG

DGM -CHASSIS

DGM MFG SERVICE

AGM-ENGINES

AGM-CHASSIS AGMMECHANICAL

DIV -MGR

DIV -MGR DIV MGR MECHATRONIC S

SENIOR -MGR

SENIOR -MGR

DIV MGR MECHANICAL

DIV MGR ELECTRICAL

SENIOR -MGR EXECUTIVES EXECUTIVES

SENIOR -MGR

SENIOR -MGR

EXECUTIVES ASSOCIATES & DAILY RATED WORKERS ASSOCIATES & DAILY RATED WORKERS ASSOCIATES & DAILY RATED WORKERS

EXECUTIVES

EXECUTIVES

ASSOCIATES & DAILY RATED WORKERS

ASSOCIATES & DAILY RATED WORKERS

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PLANT LAYOUT: Product layout is employed in chassis assembly and engine assembly where in the facilities are arranged in a line as per the process sequence of the component manufactured. Characteristics Mechanized material handling. Lesser work in progress. Special purpose machines are used.

ENGINE ASSEMBLY: The engine case arrives at the first section and it is fitted with cam shaft and flywheel. The pistons are attached one by one to the crankshaft. Later fuel filters, oil coolers are attached. Belt and gears for the running came is attached in the next section. Finally the engine timing is set and sent for mounting on the body of a truck or a bus. 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

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PASSING STAGE: Checking and tilting STAGES OF CHASSIS ASSEMBLY: Stage 1: Lay down regular Stage 2: Fixing of I & U bolt. Stage 3: Brake chamber. Stage 4: Steering gear. Stage 5: Silencer. Stage 6: Fuel / water separator. Stage 7: Air tank. Stage 8: Fuel tank. Stage 9: Engine mounting. Stage 10: Air/fuel piping. Stage 11: Propeller shaft. Stage 12: ACE link assembly Stage 13: Exhaust piping. Stage 14: Radiator. Stage 15: Tyre mounting. Stage 16: Lubrication. Stage 17: Front end structure (FES) Cab mounting. Stage 18: Bumper. Stage 19: Steering. Now the cockpit of the truck is mounted on the body of the truck correctly and then it is sent for a drive or to the storage area. For every 13 minutes a truck rolls out from the factory and 135 chassis are assembled per day as per agreement. Both these sections have a conveyor belt on which each process is carried on. The belt keeps on moving and the operator has to complete his designated job or else its nothing but an error. Page | 26

PDI (PRE DELIVERY INSPECTION): Testing of vehicle on real road conditions The following are the various tests done to test the vehicle: 1. Speed test 2. Acceleration test 3. Vibration test 4. Torque tightening 5. Oil level and water level checking 6. Electrical components checking 7. Air leakage test 8. Grease level checking 9. Power steering hose routing and clamping 10. Road test 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 maintenance

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1. PREDICTIVE MAINTENANCE: Predictive maintenance is done on assumption by experience before the occurring or by any symptoms of occurring. 2. PREVENTIVE MAINTENANCE: Preventive maintenance is work directed to the prevention of failure of a facility 3. BREAKDOWN MAINTENANCE: Breakdown maintenance is work which is carried out after a failure, but for which advanced provision has been made in the form of spares, material , labour and equipment 4. ROUTINE MAINTENANCE: Routine maintenance is done on even time or on routine basis. It includes machine lubrication, replacement of bulbs throughout plant to arrest building deterioration.

DIVISIONS: Plant engineering is divided into 4 divisions to carry out its functions. The following are divisions of plant engineering: Electrical Mechanical GWE(General Works Engineering) Page | 28

 Civil PERIOD OF MAINTENANCE: Period of maintenance is done on the basis of VED analysis. It is also known as time based maintenance. Here VED stands for V - Vital E - Essential D Desirable

ANALYSIS V- Vital E- Essential D- Desirable

DURATION 6 months 9 months Once in a year

CORPORATE SOCIAL RESPONSIBILITY

Ashok Leyland defines CSR as: "Our commitment to improving the quality of life of our employees, their families, the driver and the local communities around our units, and the society." With CSR as an integral part of Ashok Leylands activities, all social initiatives are structured and focused to enhance the commitment of employees and stake holders. CSR initiatives in Ashok Leyland are aimed at impacting positively, making a difference and sustaining them, all efforts are focused upon livelihood enhancement, health, education and environment.

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Ashok Leyland encourages employee involvement, engaging the families of the employees, and involving local, experienced and credible resources in all its CSR activities. CSR ACTIVITIES: 1) Fun Bus Fun Bus is a gift from Ashok Leyland exclusively for free users round the year by children of orphanages, corporation primary schools and physically/ mentally challenged children in Chennai. The seating layout reckons the requirements of physically challenged children. The bus is equipped with a hydraulic lift for the convenience of wheel chair bound children. 2) Green Mission In 2002, all the vehicle manufacturing units of Ashok Leyland were ISO 14001 certified with Environmental Management System. The Ennore unit was recently identified as one of the model energy- efficient units by a CII-TNEB organized Energy Conservation (ENCON) mission. Systematic management of all energy resources from the 1980s through better house keeping and awareness has made this possible. The 1980s also saw Energy audit being introduced. Improvement in machine tools, furnace-loading pattern, design of heating elements and an energy efficient lighting system has all led to energy savings of 30,782 units per day. For Ennore, practicing the 3Rs of Reduce, Reuse and Recycle has surely paid off. Recently, an opinion survey conducted in the neighbourhood reveals that both industries and the public are happy to have Ashok Leyland as their neighbor. Building on the eco friendly measure over the years, Ennore has received ISO 14001 certification for Environmental management Systems. 3) Effluent Treatment The plant can do primary, secondary and tertiary treatment operations. About 55,000 liters of effluents flow into the plant everyday. Five kilograms of solid hazardous waste is stored as per Pollution Control Board standards and the rest Page | 30

water portion is treated and used for organic farming. On an average, 2,50,000 liters of recycled water is pumped into garden saving Rs.1.5 million per annum. 4) Greening The Ennore unit is known for its lush green cover. Almost 10% of the total ground area 53.41 hectares is covered by greenery creating an oasis in the arid zone of Ennore. 5) Aids Awareness In the mid-90s, the department of International Development, British High Commission, formed the Truckers Interim Coordination Unit (TICU) for a focused programme among truck drivers. Ashok Leyland was one of the first organizations to associate itself by becoming an intervention centre. Outside the factory camps, and health education programs like lectures, cycle rallies, film shows, exhibitions etc. are conducted through our volunteers in cooperation with AIDS prevention and control project. They also provide counseling services at our Medical center. Cases which require support service are sent to Seva Kendra in Bangalore (an NGO backed by rotary- TTK), RIDS (an NGO) in Hosur, Kingsley Community Centre- (an associate of Bill and Melinda Gates Foundation) in Krishnagiri. 6) Driver Training Centre Ashok Leylands Namakkal Driver Training Centre near Salem in Tamil Nadu was started in 1995 to ready a driver for life on he road and off the road. From the very beginning, the curriculum had included, besides functional subjects, health education including yoga and AIDS awareness along with the education on the vehicle and traffic rules cum sessions on physical fitness, personality development and health risks like smoking. The drivers also attend awareness sessions on Sexually Transmitted Diseases. Ashok Leyland has reached out to 90,000 truckers during its training programme in Tamil Nadu. A training centre is also located at Alwar.

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7) Community Welfare Started in 1994, the Dharam Hinduja Matriculation and Higher Secondary School, Thiruvottiyur, Chennai, is managed by a Board of Trustees consisting of senior executives and workmen of the company. The company contributed one crore rupees in aid of relief operations for the Tsunami victims. In addition, employees contributed another 15 lakhs separately. Ambulances are donated for worthy causes. Free medical camps are held in neighbourhood. Employees participate in large numbers at periodic blood donation camps held at the Units. Substantial relief material was distributed in the worst affected districts of Tamilnadu through NGOs. The Company is also working with the Confederation of Indian Industry (CII) for long-term solutions like fishing equipment and community centers to the fishermen communities. 8) Sludge disposal A natural by-product of the painting process, sludge disposal has always been a problem faced by the auto industry. At Ashok Leyland various actions have been initiated over the years towards safe storage of sludge, ultimately leading to the construction of secured landfills within the campus. Since paint had a high calorific value, its use as a fuel was explored. The effort yielded positive results.

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4. SWOT ANALYSIS
STRENGTHS

1. Good Training System. 2. Good Organizational Climate. 3. High Market Share 4. Skilled Employees 5. Standard Quality Product
WEAKNESSES 1. 2. High price Sales representatives are less OPPORTUNITIES 1. 2. Demand for heavy vehicle have steeped up all over the globe. Company provides better credit facility to dealers. THREATS

1. 2. 3.

High competition Promotional programmes of other brands Complicated national market

4.

New players entering the market.

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COMMUNICATION SYSTEM AT ASHOK LEYLAND LTD.

The Corporate Communication department in Ashok Leyland started in 1997. Previously, a part of marketing communications, the department has come a long way. It came into existence when the management realized the need for a media friendly department to communicate with its external public. Also there was a need to communicate extensively to its internal public.

Publics

EMPLOYEES

MEDIA

AL
CUSTOMERS SUPPLIERS INSTITUTIONS

CUTcustomersmmmmmmmmmm
INDUSTRY MONITORING BODIES

SHARE HOLDERS

FINANCIAL

sfsdfsfs

ASSOCIATE PARTNERS TRADE ORGANISZATIONS

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INTERNAL COMMUNICATION: Employees form a vital part of any organization, thus it is required to establish and maintain mutual understanding with them. This will help the organization to increase efficiency and productivity in the long run. Continuous communication with the employees will facilitate the organization to keep them updated on the current happenings. Downward Communication: MDs Letter This letter is addressed to the internal public of the company by the Managing Director, This letter is drafted by the Corporate Communications Department with inputs from the MD and is circulated only internally once in three months. Managing director holds a meeting with the executives of the company every year in a 5-Star Hotel Communication Meet The communication meet is one of those events where the top management communicates directly with various departments of the company. Here the top management addresses the employees and makes a presentation which discusses the future plan. Circulars. E-mail Telephone. Ashley News Upward Communication: AL PORTAL INTRANET-MDs Portal This link allows employees to post queries to the Managing Director. The MD then goes through them and either replies to it or forwards it to a functional head. A copy of the reply by the functional head is sent to the MD. Any employee can ask any question related to the company and its functions. Soap box It is a raised platform on which employees can give in suggestions and feed back Page | 35

such as cost saving techniques, new technologies etc., and discuss over it. Any employee having companys e-mail id can access to this link through AL-Portal. Counselling Informal communication: Oral communication Improve An annual company wide contest for employee team projects which gives them a chance to think, innovate and improve. The teams are divided into Workmen, open and Executive league. These teams compete under three different streams based based on the theme of their project. AL-quiz The main aim of the quiz is to inculcate the five values of Ashok Leyland ie) International, Ethical, Speedy, Innovative and Value Creator among the employees. EXTERNAL COMMUNICATION: External communication is the exchange of information and messages between an organization and other organizations, groups, or individuals outside its formal structure. The goals of external communication are to facilitate co-operation with groups such as suppliers, investors and shareholders, and to present a favorable image of an organization and its products or services to potential and actual customers and to society at large. Communication media Website Annual Report Customer Journal-Moving Force Operators Meet Vendors & Suppliers Meet Dealers Meet Exhibitions Media Relations Shareholder Relations Page | 36

 The Annual General Body Meeting

5. FINDINGS
1. In this organization there is good employer-employee relationship. 2. It targets 100% of its employees to be involved in its continuous improvement activities by motivating them through various financial and non-financial incentives. 3. There is a well integration of all the functional departments which facilitates the use of software like ERP . 4. To solve work related problems, QC (Quality Circle) and cross functional team are made effective. 5. Ashok Leyland has not got a foothold in the luxury trucks segment in its domestic market. 6. Advertisement is not given much importance.

7. The company is increasing its global foot print by entering Asian and African
markets.

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SUGGESTIONS
The company should concentrate more on the luxury truck segments to keep a strong hold in the market The company should earmark more money for the advertisement and sales promotion of its products. It helps to increase the brand awareness and image. The company should concentrate on markets in the international arena where its competitors are less powerful.

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CONCLUSION
The summer internship and the resulted report have been of great help to the researcher, as an aspirant manager, to understand the functioning of a major establishment like Ashok Leyland. The summer internship has also revealed many unknown facts about the working of a manufacturing unit and familiarize about the assembling of commercial vehicles.

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6. BIBLIOGRAPHY
1) L.M. Prasad, Human Resource Management, 2nd edition, New Delhi, Sultan -Chand & Sons. Yr.2005. 2) Philip Kotler, Marketing Management, Millennium edition, New Delhi, Prentice Hall of India (P) Ltd., Yr. 2001 3) Ashok Leyland In- House Journal Ashley News 4) www.ashokleyland.com

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