aditya new
TRANSCRIPT
ADITYA AUTO PARTS
INDUSTRY PROFILE
As its name suggests, a door handle is used to open and close car
doors. It is found on both the exterior and interior sides of automobile doors,
although they are used differently on each panel. The one on the outside is
pulled to open the car door, while the inside door handle is used to release
the door latch before you can push the door to let yourself out. Some car
door handles can be found protruding from the exterior side while some are
built into the fascia of the vehicles so that they seem to follow the contour of
the car's body. They are usually made of steel, but doors of more expensive
cars feature chrome door handles. Luxury automobiles such as the Lincoln
Town Center are even decked with an electronic entry pad that requires you
to either enter a numerical code or have your thumb scanned so you can
open the car door.
In regular door handles, a toothed wheel at the side panel of the door,
called a rotor, helps do the job. The rotor rotates and turns its teeth so to
latch and unlatch with the striker when you open and close the car door.
Although the door handle is probably one of the least complicated parts of
your vehicle, it is just as important because it's the one that gives you entry
and exit to your car. If isn't working well, you would obviously be trapped
inside your car or perhaps be denied access to your own car. That would be a
misfortune. A car door handle can cause you a lot of inconvenience if it isn't
working properly, so it should not be taken for granted.
1
ADITYA AUTO PARTS
The remarkable impact of the India’s initiatives in economic
Liberalization and Globalization (post 1991) is most apparent in the
automotive sector. Automotive industry is a key driver of economic growth
contributing around five to six percent to the Indian GDP. Introduction of
reforms and entry of international companies has intensified competition in
the Indian automotive sector. This has resulted in the transformation of a
‘Sellers market’ (created mainly due to the Indian government’s
protectionist policies) into a ‘Buyers market’. The changing structure of this
industry has posed many challenges and opportunities to the market
participants. The automotive industry is the barometer of the Indian
economy. The sign of recovery are most visible in the growing demand for
automobiles. The aspirations of Indian consumer are considerably rising
with the growing demand.
The global automotive industry is currently undergoing consolidation
phase and the repercussion of this consolidation are likely to be experienced
in India, too. The consolidation of the automotive vehicle industry is likely
to have serious implications on the automotive component industry too.
All the trends derived out of present dynamics of the Indian
automotive vehicle market are indicators of internationalization of this
market. India has become focus of international growth seeking companies
as not only a cost competitive sourcing base but also a high growing
potential market. In the likely future ahead the competition will be
prominent in all the functions of business and only the companies with
2
ADITYA AUTO PARTS
global standards are likely to survive in the markets. The Indian
manufacturers are gearing up for the challenges but surely the current
scenario is apparently in favor of international players. The early movers are
likely to secure a position to command the global competition.
A sound transportation system plays a vital role in the country’s rapid
economic and industrial development. The well-developed Indian
automotive industry ably fulfils this catalytic role by producing a wide
variety of vehicles viz, passenger cars, light, medium and heavy commercial
vehicles, multi-utility vehicles such as jeeps, scooters, motor-cycles,
mopeds, three wheelers, tractors etc. The automotive industry comprising
mainly of the automobile and the auto component sectors has shown great
advances since delicensing and opening up of the sector to FDI in 1993. The
investment in the industry is Rs. 30,400 crores up to 1998-99. Including
turnover of the auto-component sector, the automotive industry’s turnover
exceeded Rs. 48,700 crores. The industry provides direct employment to
nearly one crore employees. The contribution of the automotive industry to
the GDP has risen from 4.0% in 1998-99 to 5.7% in 2002-03.
Since liberalization in 1993-94 to 1996-97, the automobile sector has
shown a spectacular overall growth rate of over 25% in the number of
vehicles manufactured. Also this period was characterized by the entry of
global automobile manufacturers for setting up joint ventures in India.
There has been substantial addition to capacity creation from 1998-99 to
2002-03. Installed capacity in 4 wheelers had increased from 11.76 lakhs to
13.45 lakhs vehicles. The sustained demand constraints through 1998-99,
3
ADITYA AUTO PARTS
however, have had a telling effect on the industry. 1998-99 witnessed a
decline of 16% in production of commercial vehicles.
Nevertheless, thanks to surge in two wheeler productions in 1998-99,
overall automobile sector logged a rate of growth of 7.4% comparing figures
of this year with the corresponding period of the last year it would be seen
that the difficult phase that Indian industry was passing through, appears to
be over. The automobile industry is also contributing to the export effort of
the country the growth of automobile components industry is closely linked
to the growth of automotive industry, as substantial quantity produced is
supplied by the auto components industry to original equipment
manufacturers. Being in pace with the growth in production/sales of
automobiles over the past few years, the auto components industry has also
registered stabilized growth.
The Auto Component industry is today considered as the sunrise
industry with huge growth prospects. This industry is also expected to drive
the growth of the engineering sector in view of its strong downstream and
upstream linkages with many other segments of the engineering sector like
raw materials, capital goods, intermediate products etc.
The Automobiles have always caught the fascination of humans.
Since the invention of wheel till to date, automobiles have stride part
significant milestones. Automobile industry has not only revolutionized the
modern man’s life, but also has made significant advances in the
technological front.
4
ADITYA AUTO PARTS
"Acquisitions, especially of companies in Europe, will be the mantra
for Indian players. This is because the OEMs in Europe have been facing
crisis. Outsourcing to Indian companies reduces their costs significantly and
simultaneously Indian companies gain control over the strong local brands."
Companies across most segments of auto ancillaries are expanding
capacities to tap the growing demand. According to ACMA (Automobile
Components Manufacturers Association), the investment in the sector has
risen by about 107 per cent from 1997-98 to 2004-05.
India continues to be a low-cost outsourcing destination for global
auto companies, with its strong engineering skills. For instance, Gabriel
India [Get Quote] recently signed a global supply contract with Arvin
Meritor of USA for supply of two million shock absorbers valued at around
$ 12-15 million per annum.
Sourcing parts from India is 10-20 per cent cheaper for American auto
makers and about 50 per cent cheaper for European auto makers, according
to an analyst. Exports, which at present constitute 15-20 per cent of the
industry size of about $10 billion in FY06 (Rs 45,000 crore), are likely to
reach 50 per cent in another five years.
The growth in India would be driven by the 9-10 per cent expected
growth in medium & heavy commercial vehicles, 15 per cent growth in cars
and about 20 per cent growth in light commercial vehicles. Moreover, cars,
5
ADITYA AUTO PARTS
utility vehicles and CVs made in India are increasingly getting acceptance in
foreign markets, thus driving the demand further. Even Indian two-wheeler
majors are targeting markets abroad.
Surge in automobile industry since the 90’s has led to robust growth
of the auto component sector in the country. In tandem with the industry
trends, the Indian component sector has shown great advances in recent
years in terms of growth, spread, absorption of new technologies and
flexibility. Indian auto component industry has seen major growth with the
arrival of world vehicle manufacturers from Japan, Korea, US and Europe.
Today, India is emerging as one of the key auto components center in Asia
and is expected to play a significant role in the global automotive supply
chain in the near future.
Today, the auto-component industry has emerged as a highly
competitive segment of the manufacturing sector. Indian auto component
industry is wide (over 400 firms in the organized sector producing
practically all parts and more than 10,000 firms in small unorganized sector,
in tierized format) and has been one of the fastest growing segments of auto
industry. During the year 2006-07, the Auto Component Industry continued
its high growth path and emerged as one of the fastest growing sector in
Indian Engineering Industry by clocking 21% growth in output during the
year.
The industry crossed a total turnover of over US $ 15 billion (Rs.
64,500 crore), with exports of US $ 2.9 billion (Rs. 12,643 crore) during the
6
ADITYA AUTO PARTS
year. It supports industries like automobiles, machine tools, steel, aluminum,
rubber, plastics, electrical, electronics, forgings and machining. India has
also emerged as an outsourcing hub for auto parts for international
companies such as Ford, General Motors, Daimler Chrysler, Fiat,
Volkswagen, and Toyota. As Global OEMs/Tier 1 companies have
identified India as a Leading Competitive country for sourcing auto
components for their global production, Indian auto component industry’s
export scenario is changing very fast; auto component industry’s export
growth was 15% in 2006-07.
The market for small cars now occupies a substantial share of 70% out
of the annual production of 1 million cars in India. Maruti Udyog, with its
legendary Maruti -800 is the leader in the small car market. A number of
manufacturing plants are coming up for advancements in the field of small
cars. The small car market in India is increasing by leaps and bounds. The
indigenous market for small cars now occupies a substantial share of around
70% of the annual car production in India of about one million.
The main players in the car market like Tata Motors and Maruti
Udyog are fiercely competitive and more or less all the automobile
companies in India that have forayed into the production of small cars are
trying to out-do each other in terms of design, innovation, pricing, and
technology, in order to gain control of the small car market in India. The
mid-size car market in India has grown tremendously in the last few years. A
mid-size car is an automobile which have a size that is between a compact
and a car of full size.
7
ADITYA AUTO PARTS
The government in relation to the automobile industry have taken out
various polices such as reducing the import tariffs and also relaxing the
equity regulations. This has led to the reduction in the prices of the mid-size
cars.
The Sport utility vehicle market in India has grown in recent years. A
sport utility vehicle is a vehicle which has multiple uses due to its sturdy
exterior and a spacious interior. In the Indian automobile market, the sport
utility vehicle market is growing at the fastest pace. The sport utility vehicle
market in India is where all the activity in the Indian automobile sector is
centered. This particular sector looks poised for a sharp growth in the years
to come. Sports Utility Vehicles (SUVs) have also become very popular in
India as they are considered advantageous due to their ability to
accommodate more passengers. They are ideal for trips with the whole
family. The Sport Utility Vehicle market in India is the most booming
market in India presently and SUVs have become the fastest selling cars of
India.
8
ADITYA AUTO PARTS
COMPANY PROFILE
A)BACKGROUND OF THE COMPANY:
This division located in the Doddaballapur Industrial Area on the
outskirts of Bangalore, deals with the design and manufacture of Window
Regulators and Door Latches for various vehicles with Customers located
across India. Spread over a floor area of 3450 Sq m in a 6032 sq m campus,
this unit has a full complement of facilities like Welding facility and
Manufacturing lines along with testing facilities.
A 100% Export Oriented Unit, this division located at the
Bommasandra Industrial Area on the outskirts of Bangalore, deals with the
design and manufacture of Harnesses, Integrated Products, Lead wires and
Insert Molded Connectors for export.
This division has the distinction of being ranked thirteenth in India
and is also the only manufacturing facility to get ISO, QS & TS
certifications within three years of inception. Spread over floor area of 1750
sq m in a 4000 sq m campus, this unit has a full complement of facilities for
high quality production.
Aditya Auto is an ISO 9001 / ISO / TS 16949 / ISO 14001 / ISO
18001 (OHSAS) organization - testimony to our abiding commitment to
quality.
9
ADITYA AUTO PARTS
B) NATURE OF THE COMPANY:
At Aditya Auto, our core business is the design, development &
manufacture of Door & Access products and Wiring Harness & Integrated
products for the automobile industry.
Beginning as Autarky Auto in April 1989 and established as Aditya
Auto Products in February 1999, the company has its headquarters in
Bangalore, India, and works closely with leading Automotive OEMs &
Global tier 1 industry, both in India and the rest of the world.
Aditya Auto Products & Engineering India Private Limited is a
privately owned and professionally managed organization, engaged in the
business of design & manufacture of system & sub system to meet the
requirements of the growing automobile industry.
At Aditya Auto, our core competencies lie in the design and
manufacture of a wide range of products and crucial components for leading
automobile brands across a large spectrum of vehicles, crafting design
prototypes, engineering turnkey solutions besides providing testing &
validation services.
India is fast emerging as an alliance and outsourcing destination of
choice for global automobile majors across the value chain with Contract
Manufacturing of auto components constituting a huge and potent revenue
model for Indian companies.
10
ADITYA AUTO PARTS
Aditya Auto has been proactive in utilizing this opportunity, thanks to
the formidable strength the company enjoys in terms of skilled human
resource. At Aditya Auto, people constitute a vital ingredient in enabling the
company to provide the best in products and services, ensuring value for
money while maintaining the highest levels of quality.
Today, Aditya Auto has emerged as one of the preferred source for
Contract Manufacturing for several leading names in the Automobile sector,
thanks to our proven capabilities in product design, tool design, prototype
development, testing and validation.
Backed by state-of-the-art manufacturing facilities and managed by a
team of qualified and highly skilled professionals, Aditya Auto has an
impeccable track record of providing international quality at competitive
costs with a history of delivery on time, every time.
At Aditya Auto, we have been quick to capitalize on this opportunity,
evident from a growing global clientele for our products. A wide range of
Wiring Harness & Integrated Products for varied applications in door and
window systems across different vehicle categories drives sales growth for
this division. Aditya Auto has worked its way into the Contract
Manufacturing scene by riding the outsourcing wave, with both domestic
and global automobile majors looking to achieve volumes as well as
economies of scale. Contract Manufacturing constitutes a sizeable chunk of
the revenues for the company.
11
ADITYA AUTO PARTS
Aditya Auto’s Door & Access products find their way into vehicles
manufactured in India. Our leadership in this segment has ensured a steady
growth in revenues. Aditya Auto’s Engineered Assemblies form an integral
part of supplies to vehicle manufacturers in India. Continued innovation in
this segment has ensured that we add value to our offerings.
The company has trained its personnel involved in different areas of
operations most importantly the quality assurance and quality control
activities. Adequate facilities are provided for inspection, testing and other
critical test parameters as required by the customers. The test facilities are
supported by sophisticated measuring recording instruments measures to
adhere to the desired level of quality standards in all stages.
12
ADITYA AUTO PARTS
C) PRODUCTS /SERVICE PROFILE:
Aditya Auto manufactures and supplies a wide range of Window
Regulators, both manual and power, to various customers across domestic
and overseas markets.
Drum & Cable
Cross Arm Push pull
13
ADITYA AUTO PARTS
Drums window regulators
14
ADITYA AUTO PARTS
Aditya Auto manufactures and supplies a wide range of Window
Regulators, both manual and power, to various customers across domestic
and overseas markets.
Door latches
Door Latches are among the flagship products of Aditya Auto. We
currently cater to various customers through three product categories that
include
Split Latch (2 pc. External & Internal)
Compact Latch
Actuators Including ECUs
Door Latch
15
ADITYA AUTO PARTS
WIRING HARNESS
Aditya Auto manufactures and supplies a wide range of Wiring
Harnesses for Lawn Movers, Sports car, Power Window Regulator, Sun-
Roof, Parking Sensor and Lumbar Support seating applications.
Lead Wire Harnesses
Main Harnesses
PCB Assemblies
INTEGRATED PRODUCTS
We manufacture and supply a wide range of Integrated System
Harnesses for Power Window & Anti-Pinch applications, Engine Cooling
Systems, Master Actuators and molded components / assemblies.
Electronic Assemblies (BRACKET)
16
ADITYA AUTO PARTS
Over Molded Assemblies, Insert Molded Components, Molded Components
D) AREA OF OPERATION:
17
ADITYA AUTO PARTS
With three manufacturing units, five logistics support facilities (two in
India and one each in the US, UK and France) and strategic technology
partnerships with global leaders, Aditya Auto is among the preferred OEMs
for the best brands in India and the Tier 1 supplier of choice to OEMs for
global auto majors.
DomesticAditya Auto is based at Bangalore with the primary manufacturing
hubs located at two sites. While the Door & Access Division and Contract
Manufacturing Division are located at the Doddaballapur Industrial Area,
the Wiring Harness Division is located at the Bommasandra Industrial Area.
In keeping with the tradition of working closely with our customers
and to service our customers in western & central India, Aditya Auto will
soon have its facility in Haryana, in close proximity to the Maruti Suzuki &
Honda plants. Similarly, Aditya Auto will soon have a facility at Pune, close
to our western India customers Mahindra’s, Tata Motors, Piaggio, M&M
ITEC & Skoda/VW plants.
Over seasAditya Auto has a significant presence across the globe through its
strategic partnerships and license arrangements with various international
players. Further, the growing customer base across vehicle categories in
different parts of the world combined with a robust distribution network as
part of our partnerships have ensured a global presence for Aditya Auto.
Owner ship pattern
18
ADITYA AUTO PARTS
Aditya Auto Products & Engineering India Private Limited is a
privately owned and professionally managed organization, engaged in the
business of design & manufacture of system & sub system to meet the
requirements of the growing automobile industry.
E) OWNERSHIP PATTERN :
BOARD OF DIRECTORS
MR. C.JAYARAMAN –CHAIRMAN
MR. RANGARAJ – VICE CHAIRMAN
GENERAL MANAGER
Sr. MANAGER
Deputy MANAGER
Asst. MANAGER
Sr. OFFICER
OFFICER
SUPERVISOR
19
ADITYA AUTO PARTS
Structure at Aditya auto parts:
The company is ahead by Mr. C. Jayaraman the chairman, and
Rangaraj, board of directors is managed by Mr. S. Suresh –vice president.
The management team consists of CEO and 6 AGM’s and DGM’s of
different departments.
ORGANISATIONAL STRUCTURE OF ADITYA AUTO PARTS:
20
BOD
GM
StoresDepartment
FinanceDepartment
HRDepartment
MaintenanceDepartment
PurchaseDepartment
QualityDepartment
Dispatch
ProductionDepartment
ADITYA AUTO PARTS
MANAGEMENT TEAM
MR.S.SURESH–VICE PRESIDENT (Accounts)
MR. B.R. RAJANNA (Purchase)
MR. SRINIVAS (HR)
MR. NAGENDRA (Quality & Maintenance)
Work culture
At Aditya Auto, every individual is a spokesperson and an
ambassador for the organization.
While the work culture and professional ambience at Aditya Auto
encourages team work and inspires members to achieve organizational
goals, we also recognize the need for the individual to experience growth at
a personal level.
The environment at Aditya Auto provides ample opportunities to
assume leadership roles, learn new skills, achieve proficiency on the job and
imbibe positive personality traits. With a well planned structure in place,
individuals will find mentors to guide and help them develop and succeed
professionally while experiencing satisfaction on a personal level. The
dynamics of the business scenario and progressive company polices create
an environment that is conducive for learning and growth.
21
ADITYA AUTO PARTS
At Aditya Auto, our core competencies lie in the design and
manufacture of a wide range of products and crucial components for leading
automobile brands across a large spectrum of vehicles, crafting design
prototypes, engineering turnkey solutions besides providing testing &
validation services.
India is fast emerging as an alliance and outsourcing destination of
choice for global automobile majors across the value chain with Contract
Manufacturing of auto components constituting a huge and potent revenue
model for Indian companies.
Aditya Auto has been proactive in utilizing this opportunity, thanks to
the formidable strength the company enjoys in terms of skilled human
resource. At Aditya Auto, people constitute a vital ingredient in enabling the
company to provide the best in products and services, ensuring value for
money while maintaining the highest levels of quality.
Technical excellence, astute financial and strategic planning and
exemplary project implementation characterize the leadership provided by
the Management Team at Aditya Auto.
What endears us to our customers is the value that we bring to each
product, service and process. Strong domain knowledge, stringent adherence
to industry standards, strict quality compliance and unflinching commitment
to customer delight constitute the fundamentals of everything we do at
Aditya Auto.
22
ADITYA AUTO PARTS
Typically, teams that work at Aditya Auto are high on:
Motivation
Experience
Customer Focus
Performance
Project Management
Resource Management
Result Orientation
The inherent advantages that Aditya Auto brings to the table include:
Simultaneous Engineering
Cost effective solutions
In-house facilities for critical tasks
Well documented Systems & Processes
Aditya Auto enjoys excellent C S S R & preferred vendor status, both
in the domestic and overseas markets. All this translates into a unique value
proposition for customers in terms of engineering excellence, assured
quality, prompt delivery and above all, customer delight. At Aditya Auto,
people, processes and products are sensitized to the core philosophy that
guides our outlook, work and business ethics. Aditya Auto would constantly
strive to live and 'excel' & meet customer expectations and shall continue to
be 'customer focused' and 'customer success' driven.
Aditya Auto is committed to building process capabilities, ensuring
engineering excellence, assuring quality and guaranteeing customer delight
through sustained leadership and teamwork. As an organization that is
23
ADITYA AUTO PARTS
renowned for producing the best in auto components for the best names in
the industry, Aditya Auto thrives on quality. All aspects of our business are
oriented to ensuring the best in quality – right from people to processes and
products. Adherence to best practices and compliance with International
quality standards are enforced and ensured meticulously.
At Aditya Auto, our objective is to supply products in time and
exceed customer expectations through sustained improvements in quality
and technology at competitive costs. The company has identified product
quality and customer service as priority areas to ensure customer focus
F) ACHIVEMENTS:
1) Aditya has achieved award as zero defect materials from Eicher motor co.
ltd.
2) Aditya has been awarded ISO 9001 and 14001 certificate are both
Doddaballapur and Bommasandra plants.
3) ISO 14001
Aditya auto parts provides a mechanism form among environment by
formulating environmental play and objectives complying employing with
applicable registration and managing significances important.
4) Aditya Auto is a major player in the export of automotive parts to
ArvinMeritor, from our Contract Manufacturing Division. The major
products are Door Latch sub-systems like Retention Plate & Back Plate sub-
assemblies and Window Regulator sub-assemblies.
24
ADITYA AUTO PARTS
5) Aditya Auto has been working with global Tier 1 Automotive Suppliers
to support their requirement worldwide.
G) FUTURE GROWTH & PROSPECTUS:
The primary manufacturing hubs of Aditya Auto are located at two
sites on the outskirts of Bangalore. While the Door & Access Division and
Contract Manufacturing Division are located at the Doddaballapur Industrial
Area, the Wiring Harness Division is located at the Bommasandra Industrial
Area.
In keeping with the tradition of working closely with our customers
and to service our customers in western & central India, Aditya Auto will
soon have its facility in Haryana, in close proximity to the Maruti Suzuki &
Honda plants. Similarly, Aditya Auto will soon have a facility at Pune, close
to our western India customers Mahindra’s, Tata Motors, Piaggio, M&M
ITEC & Skoda/VW plants.
Arm and sector Window Regulator line with computerized end of line
tester along with traceability feature:
Drum and Cable Window Regulator line with computerized end of
line tester
Automated Compact Latch assembly line with PLC controlled end of
line tester
Manual Latch Assembly line
Welding facilities with state of the art process controls
Tool design
25
ADITYA AUTO PARTS
The Engineering Design team at Aditya Auto has specific
competencies to cater to the Tool Design requirements of the auto
components industry. This includes turnkey solutions in product design
services and assembly solutions for automobiles.
At Aditya Auto, our Tool Design team brings design competencies
that ensure faster turnaround time, cost reduction and enhanced quality. The
team works in partnership with the customers from the drawing board
through the development process to the final delivery of parts and sub-
assemblies.
Our key tool design capabilities include 20 Stations of 2.5 m x 2 m
Progressive dies, Fine blanking tools, Hot Runner Molding tools, Special
fixtures and gauges.
Aditya Auto has the distinction of being the OEM for the best brands
in the Indian auto sector besides being the preferred Tier 1 supplier of
quality and niche products to leading OEMs, across vehicle categories.
Over seasAditya Auto has carefully nurtured a loyal customer base overseas for
its various products through a fine mix of product innovation and strategic
partnerships with industry leaders across the globe.
Our global customers benefit from constant review and up gradation
of our capabilities in manufacturing, design and engineering to ensure the
best of offerings that match international standards.
VISION & MISSION OF THE COMPANY
26
ADITYA AUTO PARTS
VISION
“To build a ROBUST organization in the auto component sector
to serve the ever demanding needs of domestic & export OEMS & to
exploit the potential of the globalized supply base”
MISSION
“Aditya would constantly strive live & excel customer expectation
& shall continue to be customer focused & customer success driven”.
OBJECTIVES
To achieve and sustain excellence in performance through use of
appropriate technology, cost efficient operation and teamwork of all
associations.
Geographic expansion
To promote strategic partners globally
Preferred supplier for automotive system in passenger car, utility
vehicles and commercial vehicles and commercial vehicles segments
Participate in social development and be Eco-friendly in all our
activities.
Up gradation of employee skills to meet global needs on a continuous
basis.
FUNCTIONAL DEPARTMENTS
27
ADITYA AUTO PARTS
The success of any business depends on the people working for it. The
various functions that a unit performs need to be planned, organized and
people with the ability need to be acquired. The success of Aditya auto parts
can be attributed to:
Focus : Our Customer
Method : Innovation and Continuous Improvement
Control : Customer Feedback
Style : Team Work
Reward : Recognition and Security
And last but not the least, the awareness among all the people of the
units about the principles of Aditya auto is also a factor for the thrive to
excel.
Human Resource Department Finance Department Maintenance and Services Department Stores Department Purchase Department Marketing Department R & D Department
POLICIES FOLLOWED BY ADITYA COMPANY
28
ADITYA AUTO PARTS
QUALITY POLICY
“Our aim is to supply product in the time & achieve customer
satisfaction through continual improvement in quality & technology &
cost. The quality of the product & service to customer are utmost
priority to remain customer focused”.
WEALTH & SAFETY POLICY
“Adhere to all applicable statutory, legal requirements & other
requirements. Deploy effective safety & health practices across the
organization with prime focused on reducing the hazards & risks.
Involve all employees in formulation of maintenance of OM&S
management programmes for continual improvement, train employees
regularly on safety & health practices”.
ENVIRONMENT POLICY AT ADITYA
Strive for continual improvement in environmental performance by control
of air and noise pollution as well as to minimize waste generation, accidents
and fire hazards.
Conserve natural resources and promote recycling and reuse.
At Aditya Auto, we are committed to save and improve the
environment by preventing pollution, conserving natural resources through
waste reduction, reuse and recycling. To this end, we have consciously
embarked upon measures to increase green cover in our installations apart
from ensuring strict compliance with applicable legal and statutory norms.
HUMAN RESOURCE MANAGEMENT:
29
ADITYA AUTO PARTS
“People are the key!” the technology can be purchased and copied;
people on the other hand cannot be copied. “Human capital” or “intellectual
capital” - the human resource of an organization, their management
represents the competitive advantage of today and tomorrow’s organization.
At Aditya auto the Human Resource Manager and an Assistant Manager –
Human resource who takes care about the human force of Aditya auto head
the human resource department.
Objectives:
30
ADITYA AUTO PARTS
1. Ensuring the availability of competent workforce and their
maintenance.
2. Maintaining good relations with the employees.
3. Maintaining the health and safety of every worker.
Functions:
Human Resource Planning – It is this department of Aditya auto that
co-ordinates with other departments to decide on the exact number of
workforce required for each department and the qualities that are required
for the workforce. The qualities include educational qualification,
knowledge about the subject, more over the willingness to work.
Recruitment and Selection – After knowing what is required or
what amount of labour is required and the right qualities of the Labour it
is the recruitment. The vacancy of post is made known to the prospective
employees through the newspaper. If it is the requirement of a manager
level candidate, the decisions are given to the human resource department
of India, country manager. The selection of prospective candidate is
made on the basis of educational qualification he processes or the work
experience of that candidate. The educational qualification could be
judged by the reputation of the university or institute. He also should pass
the physical fitness to work for the organization and more over he
requires an attitude to work for the organization.
31
ADITYA AUTO PARTS
Remuneration - It is the result of the work, paid by the company for
putting their effort in the job. All the workers are paid before the 7 th of
subsequent month. They are also paid for the units’ turnover of every
month. This is done on the basis of number of units produced and the
quality that is maintained by them as per the requirement. This forms a
part of the salary depending on the individuals report.
Training and development – All the human force whether new or
present are constantly trained on their work and conduct various
personality development camps for maintaining the improving their
ability of work. The developmental activity is conducted by an external
agency. They also on a regular basis conduct the performance check of
all the workers. Training is an act of increasing knowledge and skills of
an employee for doing a particular job. It is a short-term educational
process and utilizing organized procedure by which employees learn
technical knowledge and skills for a definite purpose.
Need for training:
1) Improve the relationship between the boss and subordinates.
2) To prepare employees for a higher level task.
3) Helps in eliminate fear in attempt in new tasks.
On- the-job training:
Under this method, the individual is placed on a regular job and taught
the necessary skills to perform the job and trainee learns under the
supervision and guidance of a qualified worker or instructor. It includes the
following
32
ADITYA AUTO PARTS
i) Job rotation: it is a moment of trainee from one job to another. It is
common in training managers for general manager position.
ii) Coaching: The trainee is placed under particular supervisor who
functions as coach in training the individual.
4) Job instruction : It is training through step by step. Trainee is
explained the way of doing the job.
Off –the-job training:
Under this method, the individual is separated on a regular job and
attention is focused upon learning the material related to future job
Performance. It includes the following:
Lecture method:
This lecture is a traditional and direct method of instruction .the
instructor organizes the material and gives it to group of trainees in the form
of training.
Canteen – All people working for Aditya auto are taken care about their
health. They are provided with canteen facilities, which are working for
all the three shifts of the day. A nominal amount is deducted from the
salary for this purpose.
Health and Safety - Aditya auto is committed to protecting the health
and safety of each employee and constantly strives for an injury-free
workplace as our overriding priority. This commitment to providing a
safe work environment has lead to an exemplary record at our facilities
worldwide.
33
ADITYA AUTO PARTS
Regarding the hiring, performance appraisal and promotion the company
has a clear policy. It gives due weight age for qualification and
experience. They do not hire people above 35 year of age.
Performance appraisal - Performance appraisal basically refers to all
those procedures that are used to evaluate the personality, the
performance, and the potential of its group members. Evaluation is
different from judgment the former being concerned with performance
the latter with person. While evaluation deals with its achievement of
goals, judgment has an undercurrent of personal attack and is likely to
evoke resistance.
Performance appraisal process:
Performance appraisal format to be distribution to the concerned
divisional heads units head for assembly.
Forwarding appraisal format to the employees.
Self appraisal.
Review & approval of employee appraisal.
Forwarding for approval.
Approval for performance appraisal.
Collection of approved performance appraisal from the unit head.
Analyzing ratings for promotion, increment, training & development.
Sending the analyzed ratings to unit head to get approval.
34
ADITYA AUTO PARTS
Preparation of salary review promotion letter etc.
Finally receipts of salary review promotion letter & development
activities takes place, to rate the performance appraisal.
360 Degree Feedback - This is defined as the systemic collection of
feedback of performance data on an individual or group derived from a
number of the stakeholders in their performance. It is done in a
systematic way via questionnaires or interviews. This formalizes
people’s judgments coming from natural interactions they have with each
other. There is both a collection and a feedback process.
The Feedback systems assesses managers in terms of the competence
they posses or more specifically through the detailed behavior which
constitutes them.
Uses of 360 Degree Feedback:
Self development and individual counseling.
Part of organized Training and Development.
Team building.
Strategic organizational development.
Validation of training and other initiatives.
Remuneration.
35
ADITYA AUTO PARTS
Transport – All the people working in the general shift are provided
with transportation facility. They are picked from their junctions and also
dropped back to their respective places after the shift. For the
transportation of the workforce the company has entered into contract
with the travel agencies who do the pick up and drop when they are
required and this service has to round the clock.
Skill - Skill is the ability, knowledge, understanding and judgment to
accomplish a task. Skills may be defined as what the company best; the
distinctive capabilities and competencies that reside in the organization.
Creativity and competency is the key to global success.
Skills of employees in the company
Skill is needed to carry out the company’s strategy. Every individual
possesses the required skills to carry out their work effectively at Aditya
auto. Each employee possesses different types of skills. Aditya auto has
done well in identifying self-development and communicational skills and
increasing the existing skills for further improvement and development of
their personalities. There are also few employees who are unskilled among
the staff; the company is taking care of all the employees in different ways
for uplifting of those unskilled employees.
The Officers at Aditya auto are very skilled, experienced and
technically qualified and proficient at work. They take active part in almost
all the activities at Aditya auto and provide valuable guidance to the
employees.
36
ADITYA AUTO PARTS
Staff - Organization requires the service of a large number of personnel.
These personnel occupy the various positions created through the process
of organizing. These personnel; comprises of the staff of the
organization. Each position of the organization makes certain specific
contributions to achieve organizational objectives. The person occupying
the position should have a sufficient ability to meet the requirements.
Hence staffing is necessary to match job and individuals. Staff means that
the company has hired people trained them well and assigned them to the
right jobs for which they are best suited according to their qualification,
skills, knowledge and experience.
Staff is one where employees work together under the control and
direction of one department head that guide them in their routine work.
An enterprise may have a comprehensive business plan, a sound
organization structure, but it cannot accomplish results as per plan
without effective staff in the company.
37
ADITYA AUTO PARTS
FINANCE DEPARTMENT
Finance is the lifeblood of every organization. Financial management is
concerned with the managerial decisions that result in the acquisition and
financing long term and short term assets for the firm. It deals with the
acquisition of specific assets the selection of specific liability as well as size
and growth of an enterprise. In Aditya auto the chief financial officer who
leads the team followed by the deputy manager finance and four other
managers look into financial aspects of the business. This would explain the
functions of finance.
38
ADITYA AUTO PARTS
Every Business enterprises success and survival entirely depends upon
how efficiently it is able to generate the funds as and when the need for it
arises. The core key to all business activities is Finance. There is a saying
“Artha Sachiva” which means that “finance reigns supreme” that speaks
about the significance of finance.
Functions:1. Accounts Payable – The Company makes purchases of various raw
materials and products from their supplier or credit on a daily basis.
The purchase includes forgings, castings bar stock, machined parts,
assemblies, and greases, liquid, stationary, etc. the company follows a
policy of payment on supplier convenience basis.
2. General Ledger – This function of the finance department is to
maintain the general accounting of the unit as and when they occur.
An Accounts Manager handles this. He is responsible for recording all
transactions happening within the unit and to submit the report on a
monthly basis. The ERP package MFG/PRO helps him by providing
him with the necessary details of purchases and sales.
3. Working capital management - Working capital is the blood stream
of any organization. It is basically the capital required towards day to
day financial operation of any organization. It is the responsibility of
the finance department to organize funds for all the required
commercial operations of the organization, to make funds available
towards the smooth and consistent functioning of the commercial
operations of the organization.
39
ADITYA AUTO PARTS
MAINTENANACE AND SERVICES DEPARTMENTS
For any machine to work properly and efficiently there should be a
constant checking of machines for its performance, if there is some problem
in the machine due to which the performance has stopped then it is
indication that the machine is not maintained properly. So, to ensure the
continuous effective services like maintenance and services department play
a major role.
The maintenance is done in three ways:
1. Preventive way – Preventive maintenance is the first step which helps
the machine to function with out any break-down. It is the preparation of
the schedule. The Maintenance section produce daily checklist and the
experts work according to that check list. Every Saturday and Sunday the
maintenance departments get into work.
2. Breakdown way – The maintenance section is responsible for the break
down. Break down slips are analyzed at regular intervals and any
problems discovered to be repetitive are added to preventive
maintenance list. Based on that analysis of spares consumed by the
machinery the section stocks minimum or maximum levels of spares,
depending on the critically of the component and the machinery.
3. Predictive way – Predictive maintenance program of IFB APL takes
place in three checks namely quarterly, half-yearly and yearly.
40
ADITYA AUTO PARTS
Few routine works that are involved in maintaining the machines are:
1. Tightening of coupling bolts
2. Tightening of plumber block
3. Checking and to pins of Oils for gear box
4. Check wise roped hook condition
5. Renew oil for Gear box
SERVICES DEPARTMENT
For any industry to service and succeed in its field of services that are
provided plays a vital role. If the desired service is given at right time the
efficiency of the organization increases. The services like water, power, land
and building and transport will act as an important source for high
performance and high productivity, if there is any failure in the power
supply the machine will stop resulting in halt in production. So, to ensure the
continuous effective production services like maintenance and service
department play a major role.
Functions:
1. Instrument calibration2. Workshop3. Civil Services4. Project Department
41
ADITYA AUTO PARTS
QUALITY DEPARTMENT
Quality control department checks the quality of the service delivered
and the materials purchased. This department ensures the upkeeps of the
standard set by the management.
Quality Policy and Functions:
To maintain a leading position as a supplier of quality services,
Systems to national standards and to build a high level of customer
confidence by providing increased value for his money. The policy is
supplemented with the following objectives.
To fully meet customer requirements including performance, safely
like characteristics and aesthetics, with the following objective.
Strict adherence to specifications, with emphasis on defects
prevention in all areas of operation.
Continuous improvement in services, process, systems through
competitive technological base.
Use of scientific system for vendor selection, development
evaluation, surveillance and for providing assistance to vendors in
Materials Management activity.
Planned and systematic programmed for acquainting customers
adequately with the proper usage of systems.
Involvement of personnel from all functions at all level for
development and maintenance of quality systems.
42
ADITYA AUTO PARTS
Coordinator Quality Systems:
Organizing and controlling of all production related activities for all in
house operations.
Analyzing and taking corrective actions on all technical and quality
related problems.
Participating in continuous improvements of projects & program.
Controls of non-confirming products observed during in house
operations.
Maintenance of all documents related to operations.
Maintenance of good housekeeping, discipline and safety.
Proper handling and packaging of finished goods.
LAB AND QUALITY ASSURANCE DEPARTMENT
Quality refers to the sum of contributes or properties that describe a
product. Quality control is a staff function concerned with the prevention of
defects in manufacturing so that items may be made right at the first time.
Functions:
Control of engineering quality
Control of purchased materials quality
Control of manufacturing quality
Actions supporting the product after decreasing
43
ADITYA AUTO PARTS
Important Quality Test Items:
Appearance
Material
Endurance Test
Operating Parameters
Environment Test
Corrosion Test
Rigidity Test
Inspection Standard Form:
This form consists of list of inspection items, checking aid used for
inspection, specification, frequency of inspection and remarks for inspection.
SL. NO Inspection
items
Checking
aid
Specification Frequency
of
inspection
Remarks.
Sample Inspection Report:
Sample inspection report consists of part name, part no, supplier
name, GRN no, sample size, list parameters to be measured, actual size
(supplier), actual size (Customer), column for judgment, decision taken after
inspection (Accepted/Rejected).
44
ADITYA AUTO PARTS
List of Measuring Equipments:
Vernier Height Gauge (Digital)
Vernier Caliper
Micrometer
Service Rating
SAFETY DEPARTMENT
Safety policy:
1. To provide safe working place.
2. To provide proper machines and tools with which the employees can
work safely.
3. To establish and insist upon safe methods and practice at all time.
Functions:
The functions of the safety department are:
1. Accident Prevention
2. Safety Education
3. Safety Equipments
MARKETING DEPARTMENT
45
ADITYA AUTO PARTS
A marketing dept. has a prominent role in any business org. a
company may easily produced the goods, but the point lied in how the
produced product is reached to the creatures. The marketing in Aditya auto
philosophy is totally customer centric. It seeks to satisfy the end customers
in all aspects by consistently providing innovative and quality products
through team efforts.
Functions:
To determine objectives, set sales targets.
To have periodic conference with sales department to discuss
customer needs.
To attend the customer complaints.
To maintain brand image produced the company.
Marketing Strategy:
Being OEM supplier the products are directly marketed to their
customers.
New customers are drawn to the company as they are a QS-9000
certified.
COMPETITOR’S INFORMATION:
46
ADITYA AUTO PARTS
1. IFB Automotive private Limited.2. TECHNICO.3. SHIVANI.
COMPETION ANALYSIS
Competition is one of the predominate role in the Business world, the
scope, strength, capability, capacity of the between competitor in a
particular product are differed and varied in nature.
The healthy competition is required than business for quality and
standard products and services for desired customers products and services
for desired customers in a market. Competition can be uncared between two
or more competitors in a domestic industrial world as weal as international
market.
Now a day a company must be ready to compete both in domestic and
international market for getting name and fame in the industrial world. The
healthy competition between companies in a product results standard,
quality with consistent pricing policy.
ADITYA AUTO PARTS has done good name and fame in the market
for its quality and standard product gaining top 1st place in the window
regulator manufacturing companies in India in zoom.
Unique Selling Proportions:
47
ADITYA AUTO PARTS
Self capacity to make new products.
Experienced design & operation team.
Less lead time for new products development.
Competitive selling price.
Strategy at Aditya auto parts:
Auto parts industry is one of the leading companies in the India.
Aditya auto parts aim at total customer satisfaction.
Major strategies are:
To become the number 1 company in India by 2008.
To be 40 companies by 2008.
To expand its market in India as well as abroad.
PRODUCTION DEPARTMENT
48
ADITYA AUTO PARTS
It is like a heart in a human body. It continues function laid to other
dept can function. There is said to be production loss if any of the depts. Do
not function. A plant manager who is responsible for the entire functioning
of the plant runs the plant. In this endeavor he is assisted by venous other
departments.
The objective of this Production department is to achieve and sustain
excellence in performance through use of appropriate technology, cost
efficient operations and team work of all associates. The company’s
continuous emphasis is to develop better ways to enhance productivity and
make manufacturing process more efficient. The company has earned a very
high reputation of delivering high quality products. The infrastructure and
assembly facilities are “just in time” delivery to customers.
Production Department Chart:
Production Manager
49 Shift In charge In charge
ProductionCoordinator
Quality Systems
Production In charge
In charge Maintenance
In charge Logistics
ADITYA AUTO PARTS
Functions:
Production techniques
Capacity management
Industrial engineering
Production planning and control
Inventory control
Quality control
Maintenance
WORK FLOW MODEL:
50
Production plan
Finished goods
ADITYA AUTO PARTS
Responsibilities of Production Department:
1. Organizing and controlling of all production related activities for all
in-house operations.
2. Provide proper assistance for the work force in carrying out the
assigned work effectively.
3. Maintaining the safe and proper working environment.
4. Maintenance of all in-house tools and fixtures.
5. Control of non conforming parts observed during in-house operations.
6. Maintenance of all document related to production.
7. Identifying training needs for operations department personnel.
51
Monthly production plan
Marketing of raw materials
Material requirement planning
Production of goods
Dispatch
ADITYA AUTO PARTS
8. Preparation of work orders and material requisition slip.
9. Proper handling and packaging of finished parts.
10.Production and material planning in co-ordination with the purchase,
stores and operations departments.
11.Preparation of monthly production plan.
12.Procurement of spares used in the machinery’s.
Available capacity:
The working hours of the plant is 8.5 hours on two shift bases and on
one shift basis in some areas, except in critical areas which work round the
clock i.e. three shifts. Out of 365 days rare considered, the calculation is
shown below:
Total no. of days/year 365 Days
Less Sundays 52 Days
Less holidays 12 Days
Total no. of working days/year 301 Days
No. of working hours/shift 8.5 Hours
Available hrs/year (two shifts/day) 5117 Hours
Available hrs/year (one shifts/day) 2558.5 hrs
PURCHASE DEPARTMENT
52
ADITYA AUTO PARTS
It is one of prominent dept, which focusing required purchasing
activities of the company. Simply purchasing refers to the act of buying an
item at a price. This dept also called as material management dept.
Functions:
Planning of raw materials
Selection and evaluation of suppliers
Assessment of suppliers
Release of purchase order
Work order
Receiving inspection
Receiving stores
Vendor Identification:
Aditya Company is primarily an assembly/ sub-assembly
manufacturing unit. The company depends to a large extend on its suppliers
for components and parts. It adopts and implements world class quality
systems, trains with suppliers in the area of production, development and
establishing their infrastructure. The company is able adopt this technique
of manufacturing because it has state-of-art, design, development and test
facilities. Thus vendor development is a critical activity.
Importing:
53
ADITYA AUTO PARTS
To understand the procedure that the commercial department at IFB
APL employs in importing a consignment, the sequence can be broken down
as follows:
1. Requirement Planning and Ordering.
2. Purchase order, price terms and payment terms.
3. Transportation and Service Agents (including Freight Forwarders,
Clearing agents and Logistic service providers)
4. Modes of Transit
5. Seaport & Airport procedures
6. Customs Procedures and Customs Duty
7. Documentation and Banking
The details of the purchase order are keyed on the ERP. The
purchase order number is obtained and purchase order is made on standard
Import Purchase Order Format. It is shown below:
THE IMPORT PROCESS:
54
ADITYA AUTO PARTS
STORES DEPARTMENT
55
Requirement Planning
Purchase Order
Dispatch Request
Pick-Up Advice to Freight
Collect Duty Amount from Finance and
Send Pay Order to Clearing
On Arrival Of Cargo: Request Clearing
Agent For Duty Advice. Instruct Clearing
Agent To File Bill Of Entry.
Collect Bill Of Entry Copies From
Clearing Agent. File Duplicate with
Accounts and Triplicate.
ADITYA AUTO PARTS
The company believes materials are money; they try to maintain best
control on the materials that are coming in and going out of the company.
The company has set up different stores in order to achieve the best control
over the materials. There are separate stores for receiving, storing, issuing
of goods and special stores exclusively for handling finished goods.
Warehousing is one of the prominent departments in Aditya auto. It
plays a major role for receiving their finished packed ceramics for their
premises and makes it stock. In warehousing quality for finished product are
given top priority.
Functions:
Goods inwards
Holding stores
Scrap and surplus stores
To receive raw materials and account for them.
Checking inspection letters.
Invoice must match with purchase order
Made rejection and replacement.
To meet the demands of consuming dept by prepare issues and
account for handling.
Warehouse is the place wherein which components used for assembly,
accessories necessary for production and components ready for secondary
operations are stored and controlled according to production plan. Store
consists of different activities namely.
56
ADITYA AUTO PARTS
Goods Received Note (GRN): In this activity all incoming raw materials or
components coming after secondary operation are recorded.
Types of GRN:
Cash GRN
Scrap GRN
Returned GRN
Bought/imported GRN
Packaging material GRN
Consumable GRN
Material Requisition Slip (MRS): This activity controls the movement of
material inside the factory i.e. to production department based on
daily/monthly/annual production plan. This activity ensures the availability
of material as and when required for production.
Material Dispatch Advice (MDA): This activity controls the components
going for secondary operations like welding, powder coating, heat treatment
etc.
Delivery Challen (DC): This is the final approval for dispatching
components for secondary operations to specified customer.
Stock In Hand: This report shows the inventory of all components at any
instant of time.
NOTE: The FIFO (First in First Out) system is followed for the movement
of material from store to production department.
57
ADITYA AUTO PARTS
ENGINEERING DEPARTMENT
Production engineering department is a supporting team for all the
department like, project, system and filed engineering, marketing, materials,
production, customer, service dept, quality assurance dept etc.
Functions:
It provides uninterrupted utilities like power, water, steam, air etc.
It carries out preventive maintenance for maximum utilization of
machines/equipments.
It modify/update existing services, machines, systems to save energy,
costs, time and enhance quality and productivity.
It carryout basic engineering, detailed engineering preparations of
specifications, drawings, documents etc.
Process Engineering:
The process engineering function at Aditya auto carries different
functions in order to facilitate the R & D departmental function. The
different functions are as below.
58
PROCESS ENGINEERING
Process design & development
Fixture design & tool maintenance
Supplier selection & approval
Component development
ADITYA AUTO PARTS
The art of turning ideas into proto-type is a reality in the company.
The company believes in pro-active process and works closely with
customers engineering teams throughout the value chain; ideas, concepts,
design, delivery cycle. The focus is on new development and ‘state-of-the-
art technology’. Talented professionals with extensive domain knowledge
and engineering with their ceaseless efforts and creativity continuously
explore for new products and technologies for the new generation. The goal
is customer excitement.
The company has realized the need to anticipate the customer’s
requirements and has expanded its activities from original design concept to
delivery. The company focuses on ‘One Stop Solution’ for all customers
design, development and manufacturing. It is an ISO 9001 and QS 9000
certified company and is now focusing on achieving the next grade, TUV T
– 1649, to become a world class supplier of automobile sub assemblies,
including door modules in foreseeable future. The company’s core
competency is in the areas of design, development, including tooling and
manufacturing of the entire range of safety critical high tech products.
The company has drawn plans to introduce products to match the
growth of the growth of automobile industry in India.
59
ADITYA AUTO PARTS
RESEARCH AND DEVELOPMENT
It is department, which is engaged in the program of researching and
developing the technology used. This department is provides us with various
activities carried by the company.
Functions:
Production development and advancement.
Improvements of technology.
Improvements in cost reduction techniques.
Better quality assurance of products.
Major spends on regards to R &D.
3D modeling
Material selection
Finite element analysis
Process engineering
Simulation and Testing
Product Design:
The company receives design specifications from its customers.
Calculations are made to achieve the specifications spelt by the customers
care is taken to ensure the standards are obtained by achieving certain
significant characteristics. The major products designed by the company are
Wiring Harness and window regulators.
60
ADITYA AUTO PARTS
MANAGEMENT INFORMATION SYSTEM (MIS)
Information technology dept is one of pediments unit in Aditya auto
for supplementing quality information to the company and outside the
company. The MIS department’s role is to control of entire computer
network of the company. Its function is to store all data, maintenance of
employee’s database, creation of employees E-mail IDs, updating of
company website, maintaining internet facility of the company and co-
ordination with the supplier and customers.
The company has separated its department, which uses EDP
(electronic data processing) to connect all the departments. They use
software called MFGPRO-ERP (Enterprise Resources Planning) developed
by QAD software developers. It is decentralized advanced software
excepted globally. To insure the smooth flow information the company has
facilities like Internet, intranet, STD/ISD facilities, fax etc.
Functions:
Analysis of sales reports
Stock analysis
Collection of daily items
Payment analysis
E-commerce network
Product design and cost of product.
61
ADITYA AUTO PARTS
SALES DEPARTMENT
The main function of this department is to execute the orders made by
the customers. The Aditya company has following the below order executing
process.
ORDER EXUCUTING PROCESS
62
Order execution process
Proforma invoice
Challen invoice
Transmit
ADITYA AUTO PARTS
SWOT ANALYSIS
The SWOT (Strength, Weakness, Opportunities and Threats) analysis
has been a useful toll for industry. The SWOT tool is effectively used as a
decision-making aid while planning new vocational programs.
The process of utilizing the SWOT approach requires an internal
survey of strengths and weakness of the program and an external survey of
threats and opportunities. Structured internal and external examinations are
unique in the world of curriculum planning and development. It is a useful
way of examining current environmental conditions around program
offerings.
A scan of the internal and external environment is an important part of
the strategic planning process. Environmental factors internal to the firm
usually can be classified as strength (S) or weaknesses (W), and that external
to the firm can be classified as opportunity (O) or threats (T). Such an
analysis of the strategic environment is referred to as SWOT analysis.
The SWOT analysis provides information that is helpful in matching
the firm’s resources and a capability to the competitive environment in
which it operated. As such, it is instrumental in strategy formulation and
selection.
63
ADITYA AUTO PARTS
STRENGTHS:
Company has good brand image and with innovative
technology up-gradation.
Having been established in 1989, ADITYA AUTO has gained
wide market share and also has become familiar to many
customers.
Aditya is an ISO-9001 and ISO-14001 certified company and
lays great importance on quality and environment
responsibility.
Aditya has a wide network of depots and over number of
customers spread over the nation.
Comprehensive support infrastructure and training
facilities.
Aditya has a good industrial relation by effective
HRD.
The Aditya philosophy is totally customer centric. It seeks to
satisfy the end customer in all respects.
Long-term value growth for all employees.
Highly committed work force.
The company manufactures window regulators generally
according to the guidelines laid down by Arvin Meritor.
High degree of participating management.
64
ADITYA AUTO PARTS
WEAKNESS:
Every organization also has some weakness. How badly these
weaknesses will affect the company is a matter of analysis.
Higher cost of production due to import of certain materials.
Profits of the company during the last year have considerably come
down.
Absence of in-house tool design/manufacturing capability.
Outsourcing critical components.
OPPORTUNITIES:
All organizations have some opportunities that they can gain from.
These could range from diversification to dale of operations. Identifying
hidden opportunities is the mark of an astute analyst.
The product of Aditya comprises wide range to cater different needs of
customer so it can utilize this opportunity against competitor’s threat.
Profits in window regulators and door latches and power window
industry with its huge growth potential could attract new entrants into
the market.
Huge market potential both in domestic and internationally.
Continuous increase in demand.
Support companies with process innovation.
Develop local skills base through increased training.
65
ADITYA AUTO PARTS
Exploit local expertise in related sector clusters technologies e.g.
renewable energy.
A growing car market can create a huge demand for company’s
products.
Demand for out sourced design.
Growth in Export market.
THREATS:
No organization is immune to threats. These could be internal, such as
falling productivity. Or they could be external, such as lower priced
international competition.
Increases in the fuel prices.
Car industry is depending on government policies.
New competitors for the same products.
66
ADITYA AUTO PARTS
SUGGESTIONS AND CONCLUSIONS
FINDINGS:
The Company invests regularly to upgrade its infrastructure to
maintain the technology leadership.
The pool of Company's skilled engineers with specialization in tool
design, tool making and manufacturing systems are continuously
upgraded through training and exposure to customer needs in the
field.
The Company engineers frequently visit the customers to solve their
problems and issues.
The tool design section is supported with a proper CAD Station and
the design engineers carry out proper analysis of the process and
product through PFMEA and DFMEA.
The Company also deploys high quality utility services, material
handling system and storage systems to ensure reliability in
production systems and also achieve high degree of productivity.
The Company also practices advanced workshop management
systems for continuous improvement and high degree of house
keeping and cleanliness.
Striving hard to produce zero defect products.
No trade unions.
67
ADITYA AUTO PARTS
Effective utilization of resources.
Corporate culture amongst the employees is excellent irrespective of
their cadre and their designation.
SUGGESTIONS & RECOMMENDATION
Some of the important departments like MIS, Logistics and R & D
have very less number of employees, the work of these departments is
important for the success of the organization. Thus the number skilled
employees should be increased.
The training program should be planned according to the required
improvement for each department.
The employees in the technical departments should get training at
least twice a year, as these are the people who need continuous
updating due to rapid changing in the technology.
Enhancing management accountability and transparency.
Enhancing marketing processes and capabilities.
Focusing on quality and the consumer.
The company has to make investment in well-versed securities &
bonds.
The company has to do physical verification of stock monthly in order
to smooth functioning of production department.
The company can adopt ‘Just-in-time’ approach, in procuring the raw
materials, which will helps in eliminating several costs.
68
ADITYA AUTO PARTS
The employees who have rating as average and below average should
opt for the training and improve their skills.
CONCLUSION
I hope I had a fruitful time during my “In plant Organization
Study” which would help in my career. I was able to group actual working
of the entire department, their interdependency and importance of each
department in smooth running of the organization. I would like to mention
the name of Mr. S.SURESH (Vice president) who helped me and guided me
in this project. The atmosphere and working conditions were encouraging in
the company.
Finally to conclude, I would like to present the following factors as
part of my learning experience at Aditya auto parts at Doddaballapur.
1. Company has excellent infrastructure with various buildings, new plants,
transportation system & various other facilities.
2. Excellent learning center, which is having good collection of books,
journals and reports.
3. Finally, a very good experience, which led me to compare theoretical
learning in the classroom to the working of an organization.
While pursuing 1st year MBA I have gained only theoretical knowledge
about management & its work. After finishing this in-plant training I came
to know about practical accepts & work situation in organisation.
69
ADITYA AUTO PARTS
ANNUAL REPORT
BALANCE SHEET AS AT MARCH 31-2007As at 31 March 06
As at 31 March 07
(Rs. In lakhs) (Rs. In lakhs)Sources of funds 3652.14 36252.14Share holders fund 2341.22 2850.57
5993.36 6502.71Loan fundsSecured loan 8477.73 8091.32Unsecured loan 558.89 534.68
9036.62 8626Deferred Tax Liability 0 100
15029.98 15228.7Application of fundsFixed AssetsGross Block 21589.27 19430Less: Depreciation 7841.91 6927.7
13747.36 12502.98Net Block 272.94 56.12Capital Work in progress 14020.3 12559.1Investment 415.31 415.31Deferred Tax Asset (Net) 34 0Current Assets, Loans & AdvanceInventories 3154.05 2501Sundry Debtors 677.16 629.63Cash & Bank Balances 88.31 50.24Loans & Advances 1224.95 744.83
5144.47 3902.7ANNEXURE
70
ADITYA AUTO PARTS
Less: Current Liabilities & Provisions
Current Liabilities 4271.59 2858.79
Provisions 317.51 110.74
4589.1 2969.53
Net Current Assets 555.37 933.17
Miscellaneous Expenditure 5 14.22
Profit & Loss Account (Being loss carried forward after deduction un committed reserves) 0 1306
15029.98 15228.71
71
ADITYA AUTO PARTS
BIBLIOGRAPHY
Sl No. Author TitleEdition,
Year Publisher
1 Fred R. DavidStrategic Management Concepts and Cases
Pearson Education
2 Philip Kotler Principles of Marketing 12th,2005 Pearson / PHI
3Prasanna Chandra
Financial Management 6th, 2004TataMc Graw
Hili
Aditya Auto Parts & Engineering (PVT) India Limited
Company Library
www.aditya auto parts.com
72