lax apollo
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INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES Page 1
CHAPTER I
INTRODUCTION
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1.1 ABOUT RUBBER INDUSTRY IN GENERAL
The rubber industry in the world made its beginning in 1887. It was because
of the invention of the processing of rubber vulcanization by Charls Goodyear. The
growth of industry, however received a good boost by century end. When John Boyd
Dunlop succeeded in making of vulcanized rubber tyres into inflatable pneumatic
tyres. Since then the tyre industry has continued to be a major segment of rubber
industry all over the world.
Even in India. Automobile tyre and tubes account for a major part Indian
Rubber product industry.
Present status of tyre industry
Automotive Tyre Manufacturers Associ ation (ATMA) was setup in 1975 as
representative body of automotive tyre industry in India. The association constitutes
of companies manufacturing tyres ranging from animal driven vehicles to aero tyres
of defence application. The applications represents approximately 90% of the tyre
production in the country. The association interact government on a continuous basis
and function as a link between government and the tyre industry.
Among the individual companies MRF is moving into aircraft tyres and formula
racing tyres manufacturing in collaboration with Uniroyal Good rich. The total
capacity of CEAT tyres has gone up to 45 lakhs with commencement of nylon cord
tyres. MODI rubber tyre industry modernized the Modipuram plant and Modinagar
plant is under implementation.
Present Indian Tyre Industry
The tyre industry has witnessed over the last decade mainly fuelled by the
strong growth in the domestic auto industry. Through the replacement market
has driven the industry growth for long time; the OEM market has seen a
robust growth over the last couple of years.
The industry is highly capital intensive as it requires around Rs. 4 billion to
setup a radial tyre plant with a capacity of 1.5 million tyres and around
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Rs 1.5- 2billion for a cross ply tyre plant of a capacity to manufacture 1.5
million tyres.
The profitability of the industry has high correlation with prices of key raw
materials such as rubber and crude oil as they account for more 70% of the
total costs. The raw materials to sales ration in the industry is around 65%
The industry is dominated by four players i.e., MRF, Apollo tyres, JK
industries and CEAT enjoy more than 70% of total market share.
The fortunes of the industry are linked to the trend in the domestic auto
industry retreading, trend in road transportation and spending on road
infrastructure.
The companies have lined up further expansion plans to meet the increasing
demand.
GLOBAL TYRE INDUSTRY
Sales. top 75 cos -US$ 70.6 billion
Top 10cos 80%
Chinese cos 4.5%
Indian cos 2.5%
19 Chinese tyre cos. Included in worlds 75 largest tyre companies.
Derived demand product (automobile dependent); boom in automobile industry
drives the impressive growth in tyre industry.
Raw material and labour intensive, high turnover, low profit margin @2to3%
Dependent on NR, steel, Crude oil; price rises cause big cost push pressure onmanufacture
Nature of tyres
A tyres is an assembly of thread, sidewall. Ply fabric and beads that have
been homogenized by vulcanization.
Tyre industry is basically a raw material intensive industry and raw
materials account for about 50% to 54% of total production cost. The major raw
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materials and their percent composition in the total raw material cost structure are
given below;
Natural Rubber 26%
Synthetic Rubber 15%
Carbon Block 12%
Nylon tyre [Card/yam (fabric)] 26%
Rubber chemicals 91%
Remaining 12% share of raw materials is accounted for by other materials
such as zinc oxide (2% ) V.P, Latex (1%), process oils (2%)& others(5%) such
as insoluble sulphur, stearic acid, resorcinol, silica & steel.
Features of the tyres industry
High capacity cost
Large distribution network
Demand is cyclical in nature
Technological intensive
Rising cost raw materials
The tyre manufacturing technology is highly sensitive and is increasing to
meet the needs of revolutionary changes in the automobile industry. Today the
entire ranges of tyres are manufactured for the industry of truck, bus, power tiller,
light truck, jeep, car etc. The industry meets the indigenous requirements from 1
kg moped tyre to 1 ton earth mover tyre, Most of the raw materials is available
in the country and the short falls are met by imports.
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1.1.1 THE INDIAN TYRE INDUSTRY
HIGHLIGHTS
The tyre industry is a Rs. 9,000 crore industry.
The fortune of this industry depends on the agricultural and industrial
performance of the economy, the transportation needs and the production of
vehicles.
While the tyre industry is mainly dominated by the organized sector, the
unorganized sector holds sway in bicycle tyres.
In the last five years (2005-06 to 2009-10), the industry managed to achieve a
compounded annual growth of only 4.40 per cent. However in the last fiscal
the industry registered a growth of 7 per cent.
Natural rubber constitutes 25 per cent of the total raw material cost of the
tyres.
The ratio of natural rubber content to synthetic rubber content is 80:20 in Indian
tyres, whereas world-wide, the ratio of natural rubber to synthetic rubber is 30:70.
The most important application of rubber relates to the transport sector
of which tyre industry consumes over 60% of the total rubber produce. During
the last 20 years tyre has been virtually reinvented with most modern
technologies like steel radial tyres, a milestone in the tyre technology. Tyre
sector is experiencing a rapid improvement with the advent of newer
technologies.
The Indian Tyre industry dates back to1930 when multinationals like Fire
Stone, Good Year and Dunlop entered in the market. MRF, Premier, CEAT at
various locations in the country carried out the domestic production of the tyre.
The tyre industries in India are classified under three heads:-
1. First Generation companies : - Dunlop and Fire Stone
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(New Bombay tyres international Ltd)
2. Second Generation companies : - MRF, CEAT, Good year, Premier
3. Third Generation companies : - J K, Vikrant, Apollo, Modi
The first Indian Company Dunlop Rubber Company was incorporated
in 1926. Today the tyre industry is growing rapidly and today its turnover is 1,
00,000 million and earning an income of Rs.1, 000 crore per annum for
export.
Market for tyre can be broadly classified or segmented into three
categories:-
Original Equipment Manufacturers. (O E M)
Replacement Market.
Export Market.
Ranking Of Indian Tyre Companies On The Basis Of Production
MRF Tyres Limited
Apollo Tyres Limited
JK Tyres Limited
CEAT Tyres Limited
Modi Rubber Tyres Limited
Birla Tyres LimitedGood Year India Limited
Vikrant Tyres Limited
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DOMESTIC RANKING
Companies Segment
Truck Light Commercial
Vehicle
Apollo Tyres 1 2
JK Tyres 2 4
MRF 3 3
CEAT 4 1
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SEGMENT WISE MARKET SHARE OF TYRE COMPANIES IN INDIA
COMPANY TRUCK AR AARM CV
APOLLO 28 0 21 9
MRF 16 5 24 0
CEAT 17 8 15 9
JK 12 4 8 15
VIKRANT 11 1 7 2
GOODYEAR 5 12 23 2
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1.2 OBJECTIVES OF THE STUDY
To get an overview of the tyre industry.
To study the overall working of Apollo Tyres Ltd.
To understand the organizational structure of Apollo tyres.
To study the functions of different departments.
To understand SWOT analysis of the company.
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CHAPTER IIPROFILE OF THE ORGANISATION
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HISTORY
The history of Apollo tyres can be traced back 70s when MNCs and
Indian tyre majors dominated the tyre industry. Apollo Tyres Ltd a leader in
the Indian tyre industry and a significant global player, providing customer
delight and enhancing share holder value was registered in 1972. The
license was firstly given to Ruby Rubber works to start a tyre factory at
Changanassery .In 1975 Raunaq Singh purchased the license from Ruby
Rubber works. It is one of the flagship companies of Raunaq group. The plant is
situated at Perambra 50 km north of Cochin. Total area covered where 97 acres
which was bought from people nearby, at a cheaper rate. At the starting time
the production capacity was 54 tonnes per day.
The Apollo tyre ltd owned by Raunaq group of industries place an
important role in world tyre industry. The products include tyres , tubes and
flaps for all vehicles. The head office of company is at New Delhi and
registered office is at cochin. The main marketing activities are concentrated
in New Delhi and around 2400 exclusive dealers for Apollo cover the entirearea of India. During 1977 to 1981 the company was under heavy loss. The
capacity utilization was only 40 to 50 % capacity. The emphasis is given on
growth quality and objectives are redefined when Mr. Onkar S. Kanwar took
over the companys affairs . Company began to earn profit and accumulated
losses of 26 crores could be wiped out with short span of time. There
second plant was installed at Limda village at Baroda in Gujarat, which
started production in 1991 having capacity of 6.5 lakh tyre/annum. This is mostmodern plant. The R&D centre is also functioning at this location. The third plant at
Kalamassery was taken over by Apollo from Premier tyres. After the takeover
Apollo spent a good amount in modernizing the plant and now its a profit
earning unit. The fourth plant was commissioned in 1996 at Pune for
manufacturing tubes. The entire requirement of tubes for all plants of Apollo is
done from here.
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MILESTONES OF APOLLO TYRE
1972 The companys license was obtained by Mr. Mathew T. Marattukalam,
Jacob Thomas and associates.
1974 The company was taken over by Dr. Raunaq singh and his
associates.
1975 April 13, foundation stone of the Perambra plant was laid.
1976 Apollo Tyres was registered.
1977 Plant commissioned in Kerala with 49 TPD capacities.
1982 Manufacturing of Passenger Car Radial Tyres in Kerala
1991 Second plant commissioned in Baroda.
1995 Acquired Premier Tyres Ltd in Kerala.
2000 Exclusive radial capacity established in Baroda.
2003 Radial Capacity expanded to 6600 Tyres per day.
November 17, Joint Venture with Michelin.
2004 Launch of Apollo Aclere- H Speed Rated Car Radials.
2005 April 13, Perambra plant completes 30 years.2006 January 30, Acquires Dunlop South Africa.
August 7, Announced the launch of new plant in Chennai.
2007 Launch of Dura tyre. Retreaded tyre first in India.
2007 Launch of Regal track and bus radial tyres.
2007 Launch of the Apollo Tennis initiative and Mission 2018
2008 Announce possible green field plant in Hungary ready by 2010 for
European market.
2009 Acquired Vredestein Banden B V in the Netherlands, and thereby
adding Europe as its third crucial market.
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GOLDEN ACHIEVEMENTS
QS- 9000: 1998, 2004 certification for Quality Management Systems.
Registered with DGS & D and Defence (CQAV).
Registered with Department of Transportation USA.
ECE Certification.
IN-Metro Brazil Certification.
SASO (Saudi Arabia)Certification
Apollo Tyres Ltd received the pollution control award by the
central government during the year 2003-2004.
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VISION
A leader in the Indian tyre industry and a significant global
player, providing customer delight and enhancing stakeholder value.
The core values of Apollo is CREATE
C- CARE FOR CUSTOMERS
R- RESPECT FOR ASSOCIATES
E- EXCELLENCE THROUGH TEAM WORK
A- ALWAYS LEARNING
T- TRUST MUTUALLY
E- ETHICAL PRACTICES
MISSION
To be largest and most profitable tyre company in India.
To make truck/bus radial operations profitable and retain leadership in the
passenger radial market.
To be a customer observed company.
To enhance value to shareholders and service to all stake holders.
To excel as a values driven organization.
To be the most preferred Tyre Brand in india.
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ORGANIZATION STRUCTURE
MANAGING DIRECTOR
BOARD OF DIRECTORS
MARKETING
MANAGER
PRODUCTION
MANAGER
FINANCE
MANAGER
ASSISTANT
MARKETING
MANAGER
H R
MANAGER
ASSISTANT
FINANCE
MANAGER
SUPERVISOR
ASSISTANT
HR
MANAGER
SUPERVISORS SUPERVISORS
WORKERS
ASSISANT
PRODUCTIO
N MANAGER
WORKERS WORKERS
SUPERVISORS
WORKERS
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PRODUCT AND SERVICES
TRUCK.
Overload Technology
Loadstar Super.
Loadstar Super Gold.
Loadstar Super Hercules.
Kaizen 50L.
Load & Mileage Technology
XT7. XT7 Gold.
XT7 Haulug.
Amar Deluxe.
Amar.
Commando.
Kaizen 36L
Kaizen 99R plus
Kaizen 77R
Premium Mileage Technology
XT9
XT9 Gold
Amar Gold
Kaizen XTD
Mileage Technology Segment
ChampionChampion Gold
Champion DXL
Amar AT Rib
Kaizen 27L
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LIGHT COMMERCIAL VEHICLE
Overload Technology Loadstar Super.
Load & Mileage Technology Mile star
Premium Mileage Technology
Amar Deluxe
Amar Gold Rib
XT9
XT9 Gold(lug)Duramile (radial)
Regular Mileage Champion
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PASSENGER CAR RADIALS
Tubeless Radial Passenger Car
Acelere
Amazer XL
Tubeless Radial MUV & SUV Hawks
Tube type Radial for Passenger
Car
Amar
Amazer XL
Quantum
Tube type Radial MUV & SUV
Amar
Amazer XL
Storm
Hawks
Passenger Car & Jeep Bias
Armour
Panther Gripper
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FARM
Cultivation Krishak Super
Sarpanch
Haulage Power Haul
Multipurpose Farm King (Radial)
Krishak Premium (bias)
Tractor Trailer Types Dhruv
Hunter
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CHAPTER III
DEPARTMENTAL STUDY
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DIFFERENT DEPARTMENTS IN APOLLO TYRES
There are 9 departments in the organization which are classified on the
basis of the functions what they are performing, which are listed below,
1. HUMAN RESOURCE DEPARTMENT
2. PRODUCTION DEPARTMENT
3. PURCHASE & STORES DEPARTMENT
4. PRODUCTION PLANNING AND CONTROL DEPARTMENT
5. QUALITY ASSURANCE DEPARTMENT
6. ENGINEERING DEPARTMENT
7. INDUSTRIAL ENGINEERING DEPARTMENT
8. FINANCE DEPARTMENT
9. SYSTEMS DEPARTMENT
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HUMAN RESOURCE DEPARTMENT
Human resources play a crucial role in the development process of the
present economy. Though the exploitation of natural resources, availability of
physical and financial resources and international aid play prominent roles in the
growth of modern economies, none of these factors is more significant than efficient
and committed manpower.
HR aims to play active role success and growth in the organization
via competitive forces.
HR plays lead role in reaffirming and reshaping organization culture in
consonance.
HR focuses on maintaining credibility in the organization.
Encourages innovation in its mechanism.
Creating organization wide involvement with the concept.
STRUCTURE OF HR DEPARTMENT
Human Resources and Administration department is one, which
facilitates smooth working of the organization by looking into the human
resource side and also the overall administration of organization
It is divided into three sections namely Industrial Relations, Security and
Administration. Heads of each section are in direct contact with the department
head. Among the three sections, industrial Relations is the biggest section havingfour subsections looking into personnel and industrial relations, employees arrival
and departure, time, health and safety.
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HR MISSION
To create HR policies and processes which are employee friendly.
To build a culture this is warm, forthcoming and professional with
a sense of ownership & pride.
To encourage innovative thinking.
To encourage transparency & teamwork.
To develop leaders at all levels with general management skills.
To create a learning organization.
To develop competencies & skills through training and development.
To constantly raise levels of employee productivity. To be a change agent.
HUMAN FRONT
CATEGORY NO OF PEOPLE
Management staff 270
Permanent workmen 1819
Workmen trainees 248
Contract workmen 453
Total 2790
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FUNCTIONS
The major functions of this department are:-
o Recruitment
o Training
o Industrial Relations
o Welfare
o Time office
o Security and Safety
o Other Administrative activities
1. Recruitment :
Recruitment is done through advertisement and employment exchange.
Candidates are called for interview and final decision is with the chief executive. As
of now there are no major constraints in attracting the right talent since the
organisation is a reputed one and the compensation package is really attractive.
2. Training:
As jobs have become more complex, the significance of employee training
has increased. The modern complex society has created intense pressure for
organisation to readapt the produce and services produced as a competitive product.
This has necessitated raising the skill level and adaptability of employees.
Apollo provides training for both managers and workers. Training programfor managers consists of both internal and external program. The workers undergo
internal training programmes conducted by experts. External training is done by
professional training canters.
A separate register is kept for recording the training activity the employee
has undergone. The human resource department selects candidates for training
based on the advice of department heads. For this performance appraisal reports
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are considered. Sometimes random selection of the candidates for training is also
done.
The effectiveness of the training program can be adjudged by providing the
trainees with a feedback format. However employees are of the view that personal
interview should be conducted to assess the effectiveness of the training program.
3. Industrial Relations:
A good industrial relation exists in the organization. The management and
the employees jointly find the solutions for the problems. There exists a good relation
between employer and employee.
There are four main trade unions recognized by the company.
1. ATEU (Apollo Tyres Employee Union) with the political influence of
CPM.
2. ATSWU (Apollo Tyres Staff and Worker Union) with the political
Influence of INTUC
3. ATMS (Apollo Tyres Mazdur Sangh) with the political influence of BMS
4. ATWM (Apollo Tyres Workers Movement)
The trade unions which get at least 20% of vote of total strength are
recognized by the management. The management has introduced a long-term
settlement (LTS) plan, which is nothing but a collective bargaining agreement. The
decisions are taken jointly by the trade union and the management. Also a part of the
HR initiative employee involving them in productivity relied issues such as qualitycircles and professional circle, a social gathering such as factory day and other
celebrations encourage participation. Among the four unions the recognized unions
are ATWM & ATEU.
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4. Welfare:
The organization provides good welfare services to its employees. The
company runs a subsidized canteen on contract basis. Rest rooms with locker and
washing facility, arts and sports club, well maintained library are the other facilities
provided.
A good transportation facility is given to all the employees from different
destinations for which they have to pay a very meager amount. All employees
drawing a salary below Rs.6000 are covered under group accidental policy and
medical claim policy. Taking the health aspects of those employees who work in thenight shift, 200ml of milk packets are provided for every night shift worked.
Management staff:
o Group hospitalization scheme.
o Group personal accident policy.
o 2 wheeler scheme-40% borne by the company.
o Car scheme- Asst. manager and above -40% borne by the company.o Super annulations-Asst. Manager and above.
o Employee self development scheme.
Workers:
Group personal accident policy.
mediclaim.
Housing loan interest subsidy-50%. 2 wheeler loan interest subsidy -70%.
Financial assistance co-operative society.
Periodically medical checkups.
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5. Time Office:
The department is concerned with registering the time in and time out of the
workers. Other activities related are; payment of wages, incentives, leaves etc. A
separate register is kept for different shifts.Apart from it, a punching system is
maintained. Each employee has to punch his badge in the electronic punching
system while arriving for duty. The same is repeated while leaving the factory
premises.
Attendance is cross checked with the attendance report of the workman and
the attendance register maintained at various sections for the staff and managerialpersons. Performance reports are maintained in each section. These are done with a
view to reduce the absenteeism in employees and motivate them to increase
production. A leave book is maintained and it contains leave balance, leave credited
and leave awaited. The daily attendance report is verified by the supervisor, shift
engineer and shift superintendent department head.
Working hours:
A - Shift 6 a.m. to 2 p.m.
B - Shift 2 p.m. to 10 p.m.
C - Shift 10 p.m. to 6 a.m.
D - Shift 9 a.m. to 5 p.m.
(Trainees will be generally put in the general shift)
6. Safety And Security:
The organization follows all the provision under the Factories Act
1948.The plant is well equipped with safety machines and directions are
given for the same. Safety directions are placed at noticeable points in and
around the plant premises. Fire extinguishers are placed reachable points and
employees are well trained to use if necessary comes. Those who work in
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production departments are given masks, safety gowns and shoes. In Apollo
,a separate book is given to each employee, which prescribes certain rules
and procedures in order to create a working environment free of accidents.
No major accident was occurred in the plant for past 10 years.
ABC of Safety:
Always B e C areful
Security:
The security is concerned with the physical movement of men andmaterial. Security staff headed by the chief security officer works at all the shifts. To
facilitate the security measures, single point entry is adopted to control visitors. For
materials, separate gate passes are issued.
Job description:
Be responsible for security of men, machinery, finished goods, raw
materials, process materials, highly sophisticated equipment etc. Their inward
outward movement is monitored as per the system prevailing.
Developments of security staffs in line with the requirement of the
organization & to keep a high morale of the forces.
Principal accountabilities of chief security officer
Monitor and control all inward and outward movement of vehicles,material and personal.
Deploy of contract workforce to various departments for routine as well
as project work.
Maintain the data base of all indirect workforce including contract
workmen.
Ensure high degree of liaison with police, local administration, fire
force and government authorities.
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Upkeep of environment management system, including housekeeping of
plant.
Keep strict vigilance, gather and assimilate intelligence for smooth
functioning of the plant in an unionized environment.
7. Other Administrative Activities:
Performance Appraisal :
The performance appraisal system followed in ATL ltd. is a 360 degree
evaluation system. This system, which solicits feedback from seniors (including the
boss), peers and subordinates, has been increasingly embraced as the best of all
available methods for collecting performance feedback. Gone are the days of
working hard to impress only one person, now the opinions of all matter, especially if
you are in a leadership role (at any level). Every person in the team is responsible for
giving relevant, positive and constructive feedback. Such systems also help in
identifying leaders for higher level positions in the organization. Senior managers
could use this feedback for self development.
Quality circle concept :
The concept of quality circles was first introduced in Perambra plant as
far back as 1988. However due to the lack of adequately trained facilitators and other
teething problems the initial activities of the quality circles was carried on a rather
modest scale. As on today Apollo has 30 active QC in operation covering about 10%
of total workforce and the number is increasing every month. The system is very
much vibrant, and at least 7 circles have presented full-fledged case studies to the
top management so far. Apollo has been able to achieve considerable financial
savings and also improve general discipline as a result of the QC. Some of the notes
worthy achievements of the QC are given below:
"Rose Circle" , is the first QC of the company from bead winding section,
evolved a system for the reduction of scrap which will fetch a saving of more than
Rs.15 Lakhs, when the suggestions are fully implemented. In August 1992, they
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presented this case study in the all Kerala competition conducted by the QCFORUM
OF India.
In April 1993 "Diamond Circle" , from the mechanical maintenance
section participated in the all Kerala case study presentation competition conducted
by National Institute for Quality and Reliability. One of the major problems faced by
Apollo in 4-roll calendar was 'derailment of wind up stand' in the calendaring
operations. The diamond circle members solved this problem effectively and saved
Rs.80, 000/-per annum. This study was adjudged as the best case study in 1993 in
the state level and second best in the national level.
Surya Circle in vertical bias cutter section presented recently another
case study to the top management. This study was rated as the best so far. The
circle members eliminated the problem of "improper ply cut" in vertical bias cutter,
which was one of the major scrap-contributing factors for the last 16 years. In this
case the financial saving will be to the tune of Rs.18 Lakhs/annum. This case study
was rated as the second best in the zonal competition conducted in March 1995.
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PRODUCTION DEPARTMENT
Production facility is the backbone of any manufacturing based organization.
Apollo Tyres is very much improved in production capacity. Per day production of
Apollo Tyres Ltd is 270 tones. The entire production system has been broadly
divided in to three sections, namely Division A, Division B and Division C.
DIVISION A:
Banbury:
All polymers are mixed with filler, process oil and other chemicals to give
different grades of rubber compounds in the Banbury. The mixed batch is then
dropped on a batch off mill for further mixing to form the rubber compound and then
in to a sheet form. The rubber in sheet form is then passed through a conveyor and
stacked on skids. Each type of rubber compound is specifically compounded for tyre
performance. Tyre meant for high way services and fast speed have different rubber
formulation.
As compared to tyres for mining services, agricultural service etc, large bales
of natural rubber are cut into smaller parts by a bale cutter, prior to mixing in the
Banbury. Carbon black, process oil, and other chemicals are mixed in the Banbury
along with rubber under specified temperature and time. An essential characteristic
of the Banbury is to give a good mix of fillers and chemicals with the rubber polymer.
Normally all rubber compounds are mixed in to two stages and natural rubber
compounds in three stages, as natural rubbers being tough, requires mastication.
The final stage in the Banbury is a critical stage when the sulphur and other
curing agents are added.
Cord Dipping Unit :
Rayon and nylon cord requires treatment in order to make them suitable
for adhesion of rubber compounds. These cord fabric are passed through a liquid
rubber solution called 'latex' and is heated under tension through special ovens.
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Each type of fabric like rayon, Nylon, Polyester etc should be coated with specific
amount of rubber latex in the cord-dipping unit. Fabric after passing through cord
dipping unit is wound up in rolls and wrapped and packed in polyethylene in order to
prevent absorption of moisture from the atmosphere.
Calendering:
All fabric is coated with specific compounds in the calender. Cord fabric is
coated on both sides with rubber layer, where as square woven fabrics are normally
fractioned and then they are coated on one side or both sides. Coating consists of
applying a rubber layer to top and bottom surface of the cords. Calenders are ofvarious types. 3 roll calenders makes a layer of rubber compound between the top
and middle roll and squeezes the rubber layer on to the fabric on one side between
the middle and bottom roll. The fabric is then to be run again through the three-roll
calender in a similar process to get a coat on either side. The 4-roll calender can
coat on both sides of the fabric with rubber layers simultaneously. After calendering,
fabrics are wound in cotton liners in order to prevent sticking.
Calenders are also used to produce rubber layers to different widths and
gauge that are required in the process of tyre manufacturing.
Extruders:
a) Single extruder :
Rubber compounds after being broken down and warmed up on Mills, are
fed in to the screw of the extruders from which with the help of dies, produces agreen shape of treads, side walls, and other strips as per specified dimensions and
contours, width, gauge and weights. These strips are cooled in water sprayed
conveyors and then cut out in to specified lengths with the help of skiver (rotary
cutting knife) and booked in metal trays or wrapped in cotton liners. The word green
denote uncured rubber (i.e., non vulcanized)
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b) Dual extruder
Two separate set of mills on which two different types of compounds are
broken down and heated and fed separately to two different screws. The two
compounds after extrusion are extruded together in a common head and with the
help of performer and final dies, emerge in to a pre-determined shape. The
advantage of dual extruder is that two rubber compounds of completely different
composition can be extruded.
DIVISION B
Bead Winding Section:
The bead building machine manufacturers beads for all types of tyres. Beads
consists of a number of strands of copper coated steel wire which is coated with a
layer of rubber compound and then wound to specified diameter depending on each
tyre. Bead building machine consists of a lot of strands, for each strand of wire
spools, which is brought together and coated on an extruder with a layer of rubber
compound and then wound on a check which determines the final diameter. Theserubber coated wire spools are then covered with rubberized cotton sq. woven fabric
with necessary fillers or rubber compounds. The functions of beads in a tyre are to
anchor the tyre while mounting rims of vehicles.
Bias Cutter:
Fabric after coating from the calender is run through bias cutter, which cuts
the fabric to, specified widths and angles. The width depends on the type of tyres
and the angle of-the cut depends on the type of tyre services required. The regular
bias angle tyre, the angle of the cords varies from 35inches to 45 inches from bead
to bead. This is the basic difference between the radial and biased angle tyres.
Tyre Building Machine:
All the necessary compounds like beads, plies (cord fabric), breakers,
treads, sidewalls, chafer etc are brought to the tyre-building machine. The tyre-
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building machine has a turret for holding different numbers of plies, breaker fabric,
chafer rolls besides tread applying conveyor. Tyre building machine itself consists of
a shaft, which can rotate at different speeds. The direction of rotation can also be
changed. According to the size of the tyre to be built specified building drum is
mounted in the shaft of the tyre-building machine. The fabric layers are then applied
to the drum along with the bead wire bundles, which are compressed together with
the help of different types of sticher wheels. After building cord carcass on the drum,
in the final stage the green tread, sidewall and chafers are applied. The green tyres,
which are in cylindrical form, are removed from the drum by collapsing the same.
DIVISION C
Tyre Curing:
The green tyre from the tyre-building machine is prepared for
vulcanization by the application of lubricants on the inner and outer surfaces for
better moulding. The Bagomatic curing press which is the latest design (no separate
air bags are required) consists of a thin synthetic cured bladder positioned in the
center of the bottom half of the mould over which the green tyres are placed. As thepress starts to close, steam pressure is applied in to the bladder, which gives the
tyre a press shape, and the pressure is increased till the full shape of the tyre
reached when the press is closed.
(I.e., both the top and bottom halves of the moulds are in contact with each
other). At this stage when the press is fully closed under high internal pressure and
temperature, curing media like steam and hot water are passed through the bladder
while the outer surface of the mould is heated by the steam. The internal pressure in
the bladder is critical for the purpose of obtaining good moulding effects. The heat or
temperature applied to different locations of the tyre compounds has to be as per the
specifications. Less heat or temperature will cause an under cure condition and
excess heat or temperature will cause deterioration in the rubber compounding
fabric. After vulcanization, the tyre is removed from the press and in the case of
nylon truck tyres, as additional process of post cure inflation may be required. This
process consists of moulding the tyre on specially designed rim and inflating the tyre
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to the required pressure while it is still hot for a period of time in order to help final
process of vulcanization and maintain a proper shape.
Tyre Inspection:
All cured tyres are then physically inspected for visual defects and excess
rubber flashes are removed. The tyre is then checked in the balancing machine. The
tyre after inspection and classification are taken to ware house .
MAJOR LOSSES DURING PRODUCTION
Break down of machineries
Loss of time for setting up of machine
Loss due to the difference of machine speed
Loss due to stoppage of production
Loss due to mistakes and correction of mistakes
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PURCHASE & STORES DEPARTMENT
This department is concerned with the purchase and storing of both
indigenous and imported materials. It covers procurement of indigenous engineering
spares, general engineering and miscellaneous items including raw materials. This
department is headed by senior manager and under him there are a number of
officers and staff. The department is provided with the latest communication facilities
and computers.
And the functioning of store moves through the following ways,
Process :- Receipt, handling, storage , packaging, forwarding &
delivery of material to internal and external customers with proper
documentation to meet their requirements.
Purpose:- To supply right material in right time to produce right
quality product without any interruption.
Scope :- Receipt , handling ,storage & issue of raw materials & tothe customer.
OBJECTIVES OF PURCHASE SECTION
Continuous availability of materials
Make purchase competitively and wisely at the most economical price.
Purchase in reasonable quantities to keep investment in materials at
minimum.
Purchase proper quality of materials to have minimum possible
wastage of materials and loss in production.
To develop good supplier relationship, this will ensure the best terms of
supply of materials.
To develop alternative sources of supply.
Adopt most advantageous method of purchase to ensure smooth
delivery of materials.
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To act as an information centre on the materials knowledge.
To sum up, the basic objective of setting up a separate purchase
department is to ensure continuous availability of requisite quality of
materials, to avoid hold up of production and loss in production and at
the same time reduce the ultimate cost of finished product.
RAW MATERIAL HANDLING PROCESS
Activity description:-
1. Upon receipt of the raw material , the document related to transporter,
supply are verified for authenticity of the supply.
2. Identification of the supply with full details of material code, date of
receipt, suppliers name & truck no : will be carried out and transferred to
the pre identified location.
3. Upon receipt of the raw materials goods requirement will be prepared 4.
Based on the goods requirement ,Quality assurance will collect the samplesas per the pre- determined frequency and OK the material if the results
are meeting the requirements.
5. The materials if rejected from lab will be sent back to supplier and all
accepted material will be accounted in the inventory.
6. Issue of raw material will be carried out to internal customers & external
customers based on the request received from the customers as if
applicable.
VARIOUS RAW MATERIALS USED IN THE MANUFACTURE
OF TYRES ARE AS FOLLOWS
o Polymers: - natural rubbers, synthetic rubber, (SBR, PBD, BUTYL etc)
o Fillers, carbon black, reinforcing clays
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o Process oil
o Curing agents/sulphur
o Accelerators/activators
o Antioxidants/antiozonents (waxes)
o Retardors
o Pepticers for natural rubber mastication
o Fabrics: nylon cord, i-ayon cord
o Bead wire spools
o Solvents for cements and solution.
o Miscellaneous items like paints, colours, crayon, scrap flakes etc.
VERIFICATION OF DOCUMENTS AT SECURITY GATE
The security inspector at main gate shall verify all documents pertaining to
the consignments brought to the factory before allowing entry in to factory premises
and note the following details. Serial no, suppliers name, description of item, challan
quantity, challan no and date or LR no and date, truck reg. no, date and time of
arrival, date and time of departure.
VERIFICATION OF DOCUMENTS AT RMS
The receipt in charge shall verify the documents to ascertain the no of
packages, description of materials code and weight of the material. If any
discrepancy is found the same shall be orally reported to the officer concerned
before unloading. He in turn will take decision suitably. The dispatch documentsinclude: Delivery challan /invoice, sales tax papers, packing list and duplicate copy
for transporter of invoice for availing MODVAT credit. In case of non receipt of any of
the above documents the consignment will not be unloaded unless and otherwise
instructed by the competent authorities after compliance of all conditions stated
above, the materials will be unloaded as instructed by the receipt in charge and lead
to the respective area.
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HANDLING STORAGE AND PRESERVATION
All the incoming materials except the materials coming in tankers will be
unloaded manually or with the help of forklift as instructed by the receipt in charge.
Caged pallets or platform pallets are used for storing of materials so far as possible
to facilitate easy handling at the time of issue. Each caged pallets will carry a
maximum of 1500 kg of materials. Caged pallets will be stacked one over the other.
PRESERVATION
Carbon black and chemicals are stored in the 2 nd floor, natural rubber
/SBR, wax etc in the 1st floor and fabric, bead wire, latex etc in the ground floor. In
case of space constraints in the respective floors, the materials may be kept in the
ground floor and other places as directed by the storage in charge. Materials
received in tankers, after checking the seal and dip reading and sample test by
quality assurance department will be directly pumped into the storage tank. Before
unloading the receipt in charge will make sure the availability in the storage tank.
Rejection items are identified by displaying a rejection tag by technical
department. In the case of rejection of voluminous quantities the materials are kept
in respective areas till disposal, while small quantities will be removed and stored in
the rejection area duly displayed with the rejection tag.
ENGINEERING GOODS STORES
Engineering goods stores is responsible for storing the necessary
spare parts, components required for smooth functioning of the plant. On
receipt of indent from production department, the engineering stores arranges
for its release. The inventory management technique used is VED Analysis. Vital,
Essential and Desirable Analysis. It is the Analysis for monitoring and control of
stores and spares inventory by classifying them into 3 categories viz., Vital, Essential
and Desirable. The mechanics of VED analysis are similar to those of ABC Analysis.
Almost all the activities of this department are computerized. The purchase
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department is initiated whenever re order level is reached. A buffer stock is always
maintained in the store. Another system followed in engineering stores is VMI-
Vendor Maintain Inventory. In this The vendors supply the raw material in large
quantities and payment is made only for consumed items.
FINISHED GOODS STORE
All finished goods after final inspection are kept at the transferring area in
each shift. The staff of final finishing will prepare a finished goods transfer-note in
triplicate which will be countersigned by the staff of FGS/TTF After verification,
finished goods transfer-note will be serially numbered and have the following details.
o Material code
o Description
o Quantity
The original copy of the transfer-note will be issued to central excise wing
after entering the details in stock statement, duplicate will be given back to
production as their file copy and triplicate will be issued to Production planning. One
staff each from production and FGS/TTF(Tyres, Tubes and Flaps) will separately
verify the quantity, size, ply rating of the finished goods and compare against the
entry in the transfer-note.
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PRODUCTION PLANNING AND CONTROL DEPARTMENT ( PP&C )
PP&C is an important department of the company headed by a senior
manager. The department consists of a senior officer, one officer, 4 junior officers
and 4 production assistants. For administrative purpose plant is divided into 3
divisions A, B, C. Banbury mixer, dip chord unit, 4 roll and 3 roll calendering units,
dual extruder and cement house come under division A. The horizontal and vertical
bias cutters, Bead winding units and tyre building units come under division B.
Division C covers tyre curing section.
FUNCTIONS OF PPC
The main function of PPC is to plan production in such a way as to make the
best use of available resources so as to meet the target set by the Management.
Importance is given to best possible capacity utilisation in terms of manpower, raw
materials and equipment. The PPC department receives monthly ticket from the
management. This is converted to monthly production plan which in turn is
distributed into a daily plan on the basis of the number of working days and lead time
required for making each component.
The daily plan is made on the basis of factors like
Output of each press in a shift
Output of each building machine in a shift
Mould and machine availability\curing cycles and no of presses
Current lineup and manningPriority based management decisions
Availability of feeding materials
The daily plan will be received everyday and plan for 3 shifts are made. It
takes 2 to 3 days to convert raw materials to finished goods. Hence all the decisions
on the components to be made in the next 3 shifts would depend on what is going to
be the cured tyre production 2 to 3 days hence. Since there is a buffer for green
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tyres, the inventory of green tyres should also be considered. This would shift the
focus from cured tyres to inventory of green tyres available.
PPC department also consider the following factors for visualising the next 3 shift
production plan
Cured tyre production for 3 shifts
Projected green tyre inventory for next 2 to 3 days.
Latest component wise inventory
Comparison of planned and actual production for the previous 3 shifts;
Production up to the day of the week and target for the remaining days.Machine availability data
First the schedule for the finished tyres is made, based on this, the schedule
for the green tyres for that shift is made. Since the tyre building process requires
assembly of large number of components namely: tread, sidewall, squeegee, plies,
breaker, chaffer and beads .
Each of these components has to be scheduled separately. Tread andsidewall are extruded from the dual extruder. So depending on the no of tyres to be
made, a schedule is made for the dual extruder. Similarly the number of plies
required for each shift in each category is arrived from the tyre-building schedule. A
tyre requires different plies of different sizes and width. Since the requirement of
plies is in the form of cuts, a conversion factor is used. The requirement of each
component is directly related to the stock on hand. The components with least
inventory are given high priority on the basis of their requirement. The plies are cut inhorizontal or vertical bias cutters. Certain plies have restriction with respect to the
choice of bias cutter. Thus schedules for the bias cutters have to be made on the
basis of bias option and priority of ply. Plies are made from calendared fabric that in
turn is made by coating sides of the dipped fabric with rubber compound. This is
done in 4-roll calendar. So a schedule for the 4-roll calendar is made on the strength
of the inventory of the calendar roll. The plies cut in the bias cutters also need to go
through a process called squeegee application in which a thin layer of rubber
compound is pressed against the inner surface of each ply. This is done in 3-roll
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calender. Besides a schedule for 3 roll and 4 roll calender machines, a schedule is
prepared for the dip unit from where dipped fabric is obtained which is used for
calendering. Similarly schedules are made for the bead preparation, which includes
bead winding, tillering and flipping. Here we can see that bottom up approach has
been used in generating the schedule i.e. based on the requirement of each
preceding step the schedule for the next step is made. This is because whatever is
made in step 1 is consumed in step2 and so on. To prepare schedules the personnel
of PPC department have to take the physical inventory of the work in progress and
finished goods everyday for each component involved in the tyre manufacture.
Besides the PPC department has to maintain the RM inventory from the RM store.
Other functions include communicating mould changes to production department,
generating reports on production, stock of raw material, working progress, finished
goods, experimental tyres, outside mixing and scrap. The schedules that are
prepared are given to various production departments for deciding the final layout of
the machines for production.
The factors that are crucial to the success of the schedule are
Mould and Machine availability
Accuracy of daily physical inventory
Computerisation
Timely receipt of ticket
The management requires vital information relating to mould and
machine availability, shift wise production details (scheduled and actual), daily
inventory of finished goods and green tyres etc.
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QUALITY ASSURANCE DEPARTMENT
Quality is the totality of characteristic of an entity that bears on its ability to
satisfy, stated and implied needs. Quality is referred to as 'fitness for use' or 'fitness
for purpose' or 'customer satisfaction' or 'conformance to requirements. QA is t he
well-planned and systematic activities implemented within the quality system and
demonstrated as needed to provide adequate confidence that an entity will fulfil
requirements for quality.
For international trade transaction ISO Certification has become inevitable.
ATL has got the privilege to have ISO 9001 Certification. ISO 9001 (1994) covers the
quality system and model for QA in design, development, production, installation and
servicing.
ATL Kalamassery has a well-functioned QA department. They divided the
whole plant in to three divisions. Each division comes under a Quality Auditor, says
Supervisor. For each process there is an audit form. Quality audit is taken by quality
Auditor. It is a systematic and independent examination to determine whether qualityactivities and related results comply with planned arrangements and whether these
arrangements are implemented effectively and are suitable to achieve objectives.
One of the purposes of quality audit is to evaluate the need for improvement or
corrective action. Audit should not be confused with inspection activities performed
for the purpose of process control.
If any deviation is there, then they will take corrective action to eliminate the
causes of an existing non-conformity with the concerned people or department
(technical). In order to prevent defect or undesirable deviation, it will be marked as
'HOLD'. HOLD point is a point beyond which the activity must not proceed without
the approval of the designated department.
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STRUCTURE OF QUALITY ASSURANCE DEPARTMENT
Process control & Audit
Laboratory
Quality Engg.
Systems
Product testing
FUNCTIONS:
RAW MATERIAL TESTING
Quality of all the raw materials received are tested in the laboratory consists
of three different sections.
Fabric laboratory: The laboratory tests all fabric and steel wires received, and at all
stage of the process i.e. after dipping, after calendering, and in the cured stage etc.
Chemical laboratory: This laboratory carries out tests for all polymers, fillers andchemicals.
Physical laboratory: All rubber compounds in process are tested in the laboratory on
each stage i.e., after mixing in the Banbury, after extrusion, and calendering and after
curing.
TYRE TESTING
Samples of cured tyres are tested indoors on a test wheel. The wheel
simulates the running condition of a tyre, primarily used to detect carcass strength
and heat generation. Tyres are also fitted on different vehicles to study the effects of
different types of roads, loads and climate conditions.
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ENGINEERING DEPARTMENT
This department consists of utility division, Electrical work shop and
industrial engineering department.
STRUCTURE OF ENGINEERING DEPARTMENT
UTILITY DIVISION:
The Utility division is the source of steam, power, water and compressed
air. The main functions of this division include:
DEMINERALISATION OF WATER
The water pumped from nearby River is demineralised by a series of
operation like filtration, passing through an ion exchange matrix etc. This is done to
remove dissolved oxygen and minerals. It is then stored in a storage tank.
BOILER AND UTILITY
There are 3 boilers running to fulfill the present demand of steam. The
capacity of two boilers is 10 TPH (Tones per Hour) and 14 TPH. The Boilers are flat
tube type and furnace oil is used as fuel. The steam generated has a pressure of
15.5 Kg/cm2
CHILLED WATER PLANT
There are 4 chillers and the medium used is FREON. The capacity of
each chillier 115TR. The temperature of the chilled water 55F. Sections which
required chilled water are: TCU, Dual extruder, Banbury, Mill etc.
COMPRESSOR HOUSE
There are total seven compressors. It is again divided into high pressure
(HP), low pressure (LP), and medium pressure (MP). All these are passed through
the dryers to remove any moisture content. LP is used for instrument purpose
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(60psi), MP is used for Banbury, Tyre building, and Bias cutter sections (90psi) and
HP is bused for Tyre curing unit and post cure inflation unit (150psi). Total electricity
consumption is 105000 units. A stand by generator is available to meet the
emergency.
ELECTRICAL WORK SHOP:
The main job of this department is electrical maintenance including
electronic instrumentation. The main management hierarchy is given below.
Total strength of this department is around 50. The maintenance activities
mainly include break down maintenance and preventive maintenance. In the case of
break down maintenance, a maintenance slip is given from the respective
department to this department including the date and the type of maintenance work
required, so that it is possible to take necessary actions. Preventive maintenance
includes developmental activities. Here pre-checking and necessary actions are
done in order to avoid the break down. Spare keeping function also included under
preventive maintenance.
There is a programmable logic array (PLL) circuit for controlling the
production process. It is actually a computer system with out the monitor and
keyboard. It contains a processing unit, control unit and memory unit. The purpose of
the control unit is to initiate a series of sequential steps of micro operations. During
any given time, certain operations are to be initiated while all others remain idle.
Thus the control variable at any given time can be represented by a string of 1's and
0's.
INDUSTRIAL ENGINEERING DEPARTMENT
The main objective of this department is to plan, design, implement and
manage integrated production and service delivery systems that assure productivity,
quality, reliability, maintainability and cost control to keep Apollo globally competitive.
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FUNCTION
Conduct work-studies, improvement studies in various equipment and
fixation of norms.
Capacity calculation in various equipment from time to time consequent to
various changes.
Design, Implementation and follow up of incentive schemes in various
zones.
Planning and assessment of manpower requirements of various
departments periodically.
Studying plant layout and material handling systems and suggesting
improvements.
Explore the possibilities of capacity expansion and prepare project reports.
Negotiations with unions regarding various issues like incentive schemes,
productivity, expansion and Labour issues
Analysis of capital expenditure request from various departments and make
recommendations to Senior Management Committee.
Prepare budgetary planning for capital and cash flow requirement.
Prepare documents for long-term settlements, bonus settlements etc. and
represent the management in the meetings with the Unions /Labour
Departments.
Visit other Industries for getting information regarding LTS methods,
practices and other developments.
Conduct various training classes for workmen, supervisors, other officers
and new recruits.
Apply various Industrial Engineering techniques such as job evaluation,
O&M (Organization & Methods) studies, Kaizen, Line Balancing etc.
Suggest various cost reduction programmes and implementation.
Associate with professional bodies like Productivity Council, NITTIE, and
Institution of Engineers etc.
Conduct daily audit on manpower, productivity, lost time, scrap details,
absenteeism, overtime etc.
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Furnish various other management information reports to the top
management.
Evolve best practices and processes through global benchmarking in the
context of global competitions and intense customer focus.
Optimize inventory levels at various stages such as Engineering Stores,
work in progress and finished goods.
Continuous improvement of methods and equipments design compatible to
the best economic standards.
Industrial engineering department helps to maintain the machines which
have been used for the production process. Preventive maintenance helps
to reduce the breakdown rate up to minimum and also to avoid the
disturbance during the production process.
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FINANCE DEPARTMENT
The corporate office situated at Gurgaon does most of the accounting and
taxation jobs of ATL. At Kalamassery plant there is a separate accounting and
finance department. This department deals with salary, wages and costing. Excise
duty of the raw materials also comes under this department.
Sales from operations during the financial year ended March 31, 2007
amounted to an all time high of Rs. 4,733 crore as against Rs.3, 002.12 crore during
the previous year, recording a growth.
The strong performance of Apollo is a combination of high growth in sales
along with enhanced operations management, better working capital management,
aggressive marketing and overall cost reduction measures adopted by the
Company.
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TURNOVER AND NET PROFITS
Apollo Tyres Ltd
Turnover
Apollo Tyres Ltd- Net
Profits
year Rs. in
Crores year Rs. In Crores
2000-01 1154.02 2000-01 31.08
2001-02 1368.75 2001-02 76.06
2002-03 1458.70 2002-03 25.42
2003-04 1710.00 2003-04 42.40
2004-05 2025.10 2004-05 120.02
2005-06 2314.31 2005-06 70.42
2006-07 2656.8 2006-07 67.63
2007-08 3002.12 2007-08 78.17
2008-09 3774.34 2008-09 147.00
2009-10 4246.98 2008-10 219.30
2010-11 4071.33 2010-11 108.45
CATEGORY AND HOLDING %
Foreign holdings 14.76
Government (Travancore titanium) 1.98
Directors and their relatives 39.35
Other including Indian public 26.38
FIIS/NRIS/ Foreign body corporate 17.55
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OPERATIONS
Net sales surged by 63% to Rs 81.2 billion from Rs 49.8 billion.
Operating profit at Rs 11.9 billion from Rs 4.4 billion.
Net profit at Rs 6.5 billion from Rs 1.4 billion the previous year.
Exports out of India grew by nearly 27%
The growth and profitability on an annual level, across operations is a clear
indication of the companys ability to overcome a challenging environment and
consistently work towards delivering value through profitable growth. In India, 7
more new HIV-AIDS Health Clinics were opened across the country to cater to thehealth of commercial vehicle drivers, of which 5 were in Tamil Nadu, taking the total
to 15. Apollo also launched a focused environment initiative called Habitat
Apollo to enable individual employees to take on greater responsibility in the larger
cause of sustainability.
PRODUCTION
During the year, your Company has achieved 7.81% growth in production
tonnage by registering production of 2,90,000 MT as against 2,69,000 MT in the
previous year. All expansion programmes were implemented successfully as
envisaged, by increasing total capacity across all plants to 744 .
SHARE CAPITAL
During the year, your Company has allotted 24.42 million equity shares of
Re.1/- each at a premium of Rs.28.30 to Promoters on conversion of 2.442 million
warrants. The Company's share capital as on 31 March, 2008 has increased from
Rs.464.02 million to Rs.488.44 million after the said allotment. Subsequently,
promoters have exercised last tranch of their option for conversion of 1.558 million
warrants into 15.58 million shares on 18April, 2008, thereby, increasing share capital
to Rs.504.02 million. The face value of equity shares of your Company has been
splitted from 1 equity share of Rs.10/- each into 10 equity shares of Re.1/- each
w.e.f. 27h August, 2007, in pursuance of the resolution passed in the Annual
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General Meeting held on 26 July, 2007. The Board of Directors of Apollo Tyres Ltd
today approved the companys audited financial results for the 4th quarter and the
financial year 2009-10. The Board recommended a dividend payout of 75%. This will
go through an approval process at the companys Annual G eneral Meeting later in
the year
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SYSTEMS DEPARTMENT
The system department is responsible for computerization of different
departments of ATL. The main function of this department, operates and co
ordinates all systems in the organization. The simple structure of department
facilitates speedy communication flow within the department.
SAP R/3
The third generation set of highly integrated software modules that
perform common business function based on multi-national leading practices. Takescare of any enterprise however diverse it may be in operations, spread over the
world geographically. SAP was founded in 1972 by 5 people Wellen Reuthor, Hopp,
Hector, Plattner & Tchira .
IBM is the implementation partner. There are around 250
computers and 100 printers were placed in different departments, which are
connected to a Central Server in the Head-office (Gurgaon, Haryana). HCL is the
service provider of Apollo Tyres. They provide VPN (Virtual Private Network)
network through BSNL leased line. The bandwidth capacity of the leased line is
2Mbps by using OFC.
MONITORING FUNCTION
Security problems in the SAP were solved using Central Virus Scanning
System and Firewall at the head office (Gurgaon, Haryana). HCL solve all the
problems related to the network connection.
MAINTENANCE FUNCTION
The system department in the plant solved network problems as well as
computer problems. Regular backups were taken daily, weekly and monthly for
providing reliability in the SAP system.
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.
CHAPTER IV
SWOT ANALYSIS
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STRENGTHS
Continued Market Leadership in the dominant industry segment i.e. Truck /
Bus tyres.
Global presence with acquisition of Dunlop Tyres International (Pty) Ltd in
South Africa.
Robust Operation Centre for managing IT operations across 140 Locations
supported by ERP / Dealer Portal / Information Systems Security Control etc.
Presence in technology products in car radial segment.
Dynamic & Progressive Leadership.
Responsive to changes in market conditions and product profiles.
Product innovation and technical superiority.
Economies of transportation cost on account of closeness to natural rubber
growing belt.
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WEAKNESSES
No presence in two/three wheeler segment.
Declining profit margins due to raw material cost push.
OPPORTUNITIES
Continuous thrust in road infrastructure and construction of expressways &
national highways. Creation of road infrastructure has given, and will
increasingly give a tremendous fillip to road transportation in the coming
years. Tyre industry will play an important role in this changing product mix oftransport.
Leadership position in the commercial vehicle segment will enable the
Company to leverage new and related business opportunities.
Access to global sources for raw materials at competitive prices due to
economies of scale.
Steady growth in vehicle production in the immediate future leading to
growing demand.
THREATS
An increase in the flow of tyres from competitive sources like China.
Cheaper imports on account of import from countries which are signatories to
Regional Trading Agreements (RTAs).
With crude prices scaling upwards, pressure on raw material prices can be
expected.
Continuous increase in the prices of natural rubber, which accounts for nearly
one third of total raw material cost.
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CHAPTER V
FINDINGS, CONCLUSION AND
RECOMMENDATIONS
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FINDINGS
The organization structure facilitates smooth running of business
The benchmarking of information security with the global best practices will
help the organization to build a strong customer loyalty
Comprehensive understanding of customer needs.
The efficiency of the employee is showing the depth of internal branding
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CONCLUSION
Apollo Tyres Limited (ATL) is one of the leading tyre manufacturing
companies and is slowly moving in the path of progress. Apollo currently
enjoys the largest market share in heavy, commercial vehicles and light truck
tyres. The Apollo dealer network of over 4000 is the one of the largest in the
country. It has strategic alliance with Michelin of France, which is the No.1
tyre company in the global market
Company places a great deal of confidence on its excellent pool of HR,
which is the key to its future growth. The industrial relation atmosphere was
cordial and the focus is also on training at all levels including works men to
new concepts of management in alignment with the overall corporate
objectives.
Apollo is quick in absorbing and adapting the latest technologies,
as part of this SAP was implemented in the record time of 8 months; this has
enabled it to connect to a vast network of 140 centres by converting them intoa single source data centre. Apollo has also implemented APO (Advanced
planner &optimize), the dealer portal helps dealers to directly place their
orders, check their financial statement and even sort out their claim status.
The demand and growth for the industry depends on primary as
well as secondary factors. The primary being the overall GDP growth,
industrial production and growth in vehicle demand. Secondary factor like the
infrastructure development, prevailing interest rates and financing options.
Soaring raw material prices with limited pricing flexibility impacted the profit
margins of all the players. The year ahead still looks tough with no easing in
raw material prices.
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RECOMMENDATION
Employee training needs should be assessed yearly .It should be done at
least twice in a year.
Training program should be planned according to the changing
environment of the organization.
Training should be distributed over short periods of time in order to be more
efficient.
There should be check on the effectiveness of training program being
conducted.
The training program that is provided to the employee should include training
on stress management in order to increase the productivity.
R&D effort can be increased to meet likely competition and come up with
new products.
Import content can be reduced by more indigenous effort.
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BIBLIOGRAPHY
1. http://www.apollotyres.com/
http://www.apollotyres.com/http://www.apollotyres.com/http://www.apollotyres.com/ -
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ANNEXURE
Balance sheet (Rs crore)
Mar' 11 Mar' 10 Mar' 09 Mar' 08 Mar' 07
Sources of funds
Owner's fund
Equity share
capital 50.41 48.85 46.41 38.34 38.34
Share application
money - 4.57 11.72 - -
Preference share
capital - - - - -
Reserves &
surplus 1,305.30 1,176.84 917.56 592.37 534.94
Loan funds
Secured loans 462.39 223.15 473.76 381.00 348.75
Unsecured loans 233.13 237.51 144.94 369.00 195.06
Total 2,051.23 1,690.91 1,594.39 1,380.71 1,117.09
Uses of funds
Fixed assets
Gross block 1,838.00 1,569.66 1,492.51 1,310.61 1,148.43
Less revaluation
reserve - 3.16 3.16 3.31 3.46
Less accumulated
depreciation 694.66 598.66 541.66 469.94 398.30
Net block 1,143.34 967.84 947.70 837.36 746.67
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Capital work-in-
progress 281.41 94.41 80.46 77.93 84.33
Investments 297.45 302.71 258.11 0.53 54.48
Net current assets
Current assets,
loans & advances 1,040.70 1,472.83 1,278.76 1,204.58 905.05
Less : current
liabilities &
provisions
711.82 1,147.14 970.76 739.95 673.82
Total net current
assets 328.88 325.69 308.00 464.63 231.23
Miscellaneous
expenses not
written
0.15 0.26 0.12 0.26 0.38
Total 2,051.23 1,690.91 1,594.39 1,380.71 1,117.09
Notes:
Book value of
unquoted
investments
297.26 302.53 257.97 0.25 44.10
Market value of
quotedinvestments
0.03 0.07 0.11 1.07 19.97
Contingent
liabilities 682.36 444.96 119.29 106.63 113.14
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