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ORGANISATION STUDY REPORT AT APPOLO TYERS (PERAMBRA) Submitted by, Gobind.C.J In partial fulfilment of requirement for the award of Master of Business Administration

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ORGANISATION STUDY REPORT AT APPOLO TYERS (PERAMBRA)

Submitted by, Gobind.C.J

In partial fulfilment of requirement for the award of Master of Business Administration

ACKNOWLEDGEMENT

First of all, I thank the Almighty for giving me the strength and blessings that showered on me to do my project successfully. It gives me immense pleasure to thank our Principal prof S. G IYER Sir for giving me this wonderful opportunity to get an insight about the work culture of an organization. I would also like to thank Mrs Soumya V Iyer (project guide) for guiding me to complete my project. I thank Mr. Mubarak, Associate Manager (HR) for his guidance and assistance throughout my project. I also take this opportunity to thank my family, friends for their continuous motivation and for boosting my confidence level to complete my project.

Sreelakshmi A A

TABLE OF CONTENT

SL. CHAPTER TITLE No 1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 1 1.1 1.2 1.3 1.4 1.5 2 2.1 2.2 2.3 2.4 3 3.1 3.2 3.6 3.4 3.5 3.6 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 5 6 INTRODUCTION Significance of the study Objectives of the study Scope of the study Methodology followed Scheme of reporting INDUSTRY PROFILE Introduction to industry and its evolution An analysis of the current competition prevalent World scenario Indian scenario COMPANY PROFILE Introduction Vision and mission Promoters of the company Product details Organizational structure Future plan DETAILED STUDY OF DEPARTMENTS 1 Human Resource Department 2 Production Department 3 Purchase Department 4 Stores Department 5 System Department 6 Finance Department 7 Quality Assurance Department 8.Marketting Department 9.Utility Department 10. Technical Department SUGGESTIONS AND RECOMMENDATION CONCLUSION

PAG E NO

TABLES

Page. Sl. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Table. No 2.1 2.2 2.3 3.1 3.2 3.3 3.4 3.5 3.6 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 Title Global market share Company market share Domestic rank Mile stone of Apollo tyres Turnover of Apollo tyres Product details Light commercial vehicles Passenger car radicals Farm Activities in raw material store For generation Issue Identification and storage Outside mixing Stock transfer to sister concern Inventory maintenance Scrap disposal Handling of rejected items Open delivery report no

CHAPTER 1

INTRODUCTIONThe industrial revolution in the eighteenth century not only initiated a boom in the industrial sectors across the world; but also initiated a much more clinical and systematic approach in the management of organizations. Rather than running the organizations, organizations are now managed.

This highly evolved and scientific process of managing organizations became more important ever since the doors of India were opened for global trade. Competition began to fly in from highly advanced industrial nations forcing the Indian industries to think in advance and change the year old methods they followed in managing organizations.

Looking positively at the current industrial scenario prevalenst in the country makes us understand that the Indian industry is growing both in terms of business they do and also in terms of brain power it holds. A highly able super competitive workforce is what drives the industrial growth. A dedicated workforce determined to find oncoming opportunities at the earliest and modulate ideas to grab those opportunities and to streamline the operations of the organization can be considered as the most valuable asset an organization possess.

Advances made in the scientific and technological areas combined with determined manpower are what we need to drive the Indian industrial juggernaut ahead.

Consider whatever field; let it be software, infrastructure development, pharmacy, biotech, the graph of Indian industries is growing only in one direction. That is; ascending

Need and Significance of the study.The importance of management education, management development and management training cannot be over emphasized. While the theory classes provide management concepts to a student it is essential for him to develop managerial skill possibly through experiential learning. Internship training is one of the many tools used by management institutes to provide opportunity for the student to develop managerial skills. It also helps to bridge the gap between the test book knowledge and management in practice. Effective management creates innovative and flexible environments, where workers and teams successfully work to continually improve their performance. The trainee got an opportunity to interact with successful practicing managers at their own work setting. The trainee could also experience the work environment and the relationship of the managers and employees in a dynamic environment. Observing managers in action by itself was a motivating experience

OBJECTIVE OF THE STUDY

1. To observe and study the different functional departments of Apollo Tyres Ltd. 2. To study how different activities of departments are structured.

3. To study the functions of various departments of the company. 4. To familiarize with the processes and procedures of different departments of the firm. 5. To do a SWOT analysis of Apollo Tyres

SCOPE OF THE STUDYThe scope of a study actually limits the domain of the study .The trainee attempted to study Apollo tyres by conducting a study as the period of study was limited to 15 days the scope of the study was further limited to four departments namely the HR department, Production department, commercial department, engineering department.

MethodologyThe present study being an internship training used observation research to collect data and arrive at conclusions. Both primary and secondary data were needed for completion of the study. Apart from observation, Interviews were also conducted among working executives for collecting primary data for the study. Secondary data were collected from the web site of the company, its internal records, annual reports, journals, business dailies and internet. During the study, I gathered information relating to Organizational Structure, various departments and their functions, products, quality policies, procedures of the company.

This study is based on the relevant data and materials obtained from the organization. Also direct interviews are held with high authorities and staffs to get more accurate and up-to-date information. Each activity of the company is studied carefully with the available data and materials

Scheme of Reporting:-

This training report was presented in five chapters including this chapter on introduction. The first chapter on introduction provides in detail the need and significance of the study, objectives of the study, the scope of the study and the methodology used in this study. The second chapter is on industry profile which contains an introduction to the tyre industry, an analysis of the current competition prevalent in the industry globally and also the Indian scenario. The third chapter profiles Apollo Tyres Ltd. The vision and mission of the company, details of promoters of the company, the product details, the organization structure, the financial performance and the future plans of Apollo is listed in this chapter. After this the detailed description of four departments- the HR department, Production department, commercial department, and the engineering department were provided in the third chapter itself. The forth chapter contains suggestions and recommendation and the last chapter concludes the report.

CHAPTER-2

INDUSTRY PROFILEHistory of Tyres The key milestone in the history of tyres was the invention of the wheel by Sumerians 5000 years ago and it has been refined over ages. Centuries back pieces of rubber placed at four corners of the vehicle were used as tyres. The earliest tyres were bands of iron (later steel), placed on wooden wheels, used Mon carts and wagons. The tyre would be heated in a forge fire, placed over the wheel and quenched, causing the metal to contract and fit tightly on the wheel. But the whole scenario started changing when Charles Goodyear invented vulcanized rubber in 1844 which was later used for the first tyres. The first practical pneumatic tyre was made by the Scot, John Boyd Dunlop, in 1887. Pneumatic tyres are made of a flexible Elastomeric material, such as rubber, with reinforcing materials such as fabric and wire. Tyre companies were first started in the early 20th century, and grew in tandem with the auto industry. Today, over 1 billion tyres are produced annually, in over 400 tyre factories, with the three top tyre makers commanding a 60% global market share.. Chronology of Tyres:-

1. 1843 Charles Goodyear announces vulcanization. 2. 1846 Robert William Thomson invented and patented the pneumatic tire. 3. 1888 First commercial pneumatic bicycle tire produced by Dunlop. 4. 1889 John Boyd Dunlop patented the pneumatic tire in the UK. 5. 1890 Dunlop, and William Harvey Du Cross began production of pneumatic tires in Ireland. 6. 1890 Bartlett Clincher rim introduced.

7. 1891 Dunlops patent invalidated in favour of Thomsons patent. 8. 1892 Beaded edge tires introduced in the U.S. 9. 1894 E.J. Pennington invents the first balloon tire. 10. 1895 Michelin introduced pneumatic automobile tires. 11. 1898 Schrader value stem patented. 12. 1900 Cord Tires introduced by Palmer (England) and BF Goodrich (U.S.) 13. 1903 Goodyear Tire company patented the first tubeless tire; however it was not introduced until 1954. 14. 1904 Goodyear and firestone started producing cord reinforced tires. 15. 1904 Mountable rims were introduced that allowed drivers to fix their own flats. 16. 1906 First pneumatic aircraft tire. 17. 1908 Frank Seiberling invented grooved tires with improved road traction. 18. 1910 BF Goodrich Company invented longer life tires by adding carbon to the rubber. 19. 1919 - Goodyear and Dunlop announced pneumatic truck tires. 20. 1938 Goodyear introduced the rayon cord tire. 21. 1940 BF Goodrich introduced the first commercial synthetic rubber tire. 22. 1946 Michelin introduced the radial tire. 23. 1947 Goodyear introduced first nylon tires. 24. 1947 B F Goodrich introduced the tubeless tire.

25. 1963 Use of polyester cord introduced by the Goodyear. 26. 1965 Armstrong Rubber introduced the bias belted fibreglass tire. 27. 1965 BF Goodrich offered the first radial available in North America. 28. 1967 Poly/glass tires introduced by Firestone and Goodyear. 29. 1968 United States Department of Transportation (DOT) numbers required on new tires in USA. 30. 1974 Pirelli introduced the wide radial tire.

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

Company

Market share

Michelin Bridgestone Goodyear Continental Sumittomo Pirelli Yokhohamo Kumho Others

19.5% 19.4% 16.6% 7.1% 4.9% 3.9% 3.5% 1.7% 23%

Table 2.1

GLOBAL MARKET SHARE

World ScenarioThe world tyre industry is worth around US $ 70 billion. The industry is marked by the presence of around half a dozen major players who together occupy to 70% of the world market share.

. Company Market share-:

COMPANY Michelin Bridgestone Goodyear Continental Sumihomo Pirelli Yokohama Kumho Others Table 2.2

MARKET SHARE 19.4 19.4 16.6 7.1 4.9 3.9 3.5 1.7 23.5

The Indian Scenario

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 carry out the domestic production of the tyre. The tyre industry in India is classified under three heads:-

1. First Generation companies: - Dunlop and Fire Stone (New Bombay tyres international Ltd).

2. Second Generation companies: - MRF, CEAT, Good year, Premier

3. Third Generation companies: - J K Tyres, Vibrant, Apollo and Modi rubber The first Indian tyre Company Dunlop Rubber Company was incorporated in 1926. Today the tyre industry is growing rapidly and its turnover is 1, 00,000 million and earning an income of Rs.1, 000 core 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.

. Salient Features of Indian Tyre Industry1) Adaptability and absorption. 2) Exports 3) Innovations 4) Indigenous and ready availability

5) Technology progression 6) Wide product range for diverse use 7) Self sufficiency and vibrant marketing setup.

.Ranking of Indian Tyre Companies On The Basis Of Production1. MRF Tyres Limited 2. Apollo Tyres Limited 3. JK Tyres Limited 4. CEAT Tyres Limited 5. Modi Rubber Tyres Limited 6. Birla Tyres Limited 7. Good Year India Limited

Highlights1) The Indian tyre industry is a Rs. 9,000 crore industry. 2) The fortune of this industry depends on the agricultural and industrial performance of the economy, the transportation needs and the production of vehicles. 3) While the tyre industry is mainly dominated by the organized sector, the unorganized sector holds sway in bicycle tyres. 4) In the last five years (2002-03 to 2007-08), 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.

5) Natural rubber constitutes 25 per cent of the total raw material cost of the tyres. 6) The ratio of natural rubber content to synthetic rubber content is 80:20 in Indian tyres, whereas worldwide, the ratio of natural rubber to synthetic rubber is 30:70.

Domestic Rank

Companies Truck Apollo Tyres JK Tyres MRF CEATTable 2.3

1 2 3 4

Segment Light Commercial Vehicle 2 4 3 1

CHAPTER-3

COMPANY PROFILEHistory of the Company The history of Apollo tyres can be traced back 70 s when MNC s 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 who stayed there by, at cheaper rate. At the starting time the production capacity was 54 tones per day.

The Apollo tyre ltd owned by Raunaq group of industries play 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 entire area 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 Caar took over the companys affairs . Company began to earn profit and accumulated losses of 26 cores 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 most modern plant. The R&D centre is also functioning at this location.

The third plant at kalamassery was taken over by Apollo from Premier tyres .While taking over this plant was a sick unit. After the takeover Apollo spent a good amount in modernizing the plant and now it is also 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 taken care off from here. Family Focus. Hygienic Factors. Employee Involvement and Culture Building. Manufacturing Excellence Awards:Perambra plant has received best norms for man days lost due to accidents. Best norms for FGS-OE adherence.

Certifications1) QS 9000 (Automobile specification) 1998, 2004 certification for quality management systems 2) Registered with DGS & D and defence (CQAV) 3) Registered with DOT (Department of Transportation USA) 4) ECE certification 5) In-metro (Brazil) certification 6) SASO (Saudi Arabia) certification 7) ISO 9001 certification

Mile s tone of Apollo tyres 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 1976 1977 1982 1991 1995 2000 2003 April 13, foundation stone of the Perambra plant was laid. Apollo Tyres was registered. Plant commissioned in Kerala with 49 TPD capacities. Manufacturing of Passenger Car Radial Tyres in Kerala Second plant commissioned in Baroda. Acquired Premier Tyres Ltd in Kerala. Exclusive radial capacity established in Baroda. Radial Capacity expanded to 6600 Tyres per day. November 17, Joint Venture with Michelin. 2004 2005 2006 Launch of Apollo Aclere-H Speed Rated Car Radials.

April 13, Perambra plant completes 30 years. January 30, Acquires Dunlop South Africa. August 7, Announced the launch of new plant in Chennai.

2007 2007 2007 2008

Launch of Dura tyre. Retreaded tyre first in India. Launch of Regal track and bus radial tyres. Launch of the Apollo Tennis initiative and Mission 2018 Announce possible green field plant in Hungary ready by 2010 for European market.

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 1976 1977 1982 1991 1995 2000 2003

April 13, foundation stone of the Perambra plant was laid. Apollo Tyres was registered. Plant commissioned in Kerala with 49 TPD capacities. Manufacturing of Passenger Car Radial Tyres in Kerala Second plant commissioned in Baroda. Acquired Premier Tyres Ltd in Kerala. Exclusive radial capacity established in Baroda. Radial Capacity expanded to 6600 Tyres per day. November 17, Joint Venture with Michelin.

2004 2005 2006

Launch of Apollo Aclere-H

Speed Rated Car Radials.

April 13, Perambra plant completes 30 years. January 30, Acquires Dunlop South Africa. August 7, Announced the launch of new plant in Chennai.

2007 2007 2007 2008

Launch of Dura tyre. Retreaded tyre first in India. Launch of Regal track and bus radial tyres. Launch of the Apollo Tennis initiative and Mission 2018 Announce possible green field plant in Hungary ready by 2010 for European market. Table 3.1

Manufacturing CentresCorporate office-Gurgaon Other plants in India:- Baroda - Pune - Perambra - Kalamassery Upcoming plant:Chennai International plants:Zimbabwe Bulawayo South Africa Ladysmith, Durban

3.1.3. Perambra Plant (in Focus)1 Single largest truck tyre plant in India. 2 Fastest growing plant in Apollo family. 3 It is known as the mother plant. 4 Continuous expansions. 5 Total employee involvements. 3.1.4. Highlights of Apollo Tyres Ltd 1. 7th fastest growing Tyre Company in the world. 2. 17th largest Tyre Company in the world. 3. First Tyre Company in India to obtain ISO9001 certification for all its operations. 4. First Company to introduce packaging for tubes, two wheeler Tyres and Car Tyres.

Turnover of Apollo as a Whole (In Tyres) Years 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 Turnover in Crores 1710.14 2025.62 2314.31 2656.81 3002.12 3774.34 4246.98 Table 3.2

3.1.5. Golden Achievements1. Apollo Tyres Ltd Perambra unit was ranked the first among large scale industries for productivity and energy conservation in the year 2002-2003 by Kerala state productivity council. 2. Apollo Tyres Ltd received the pollution control award by the central government during the year 2003-2004.

Vision and Mission

Vision A significant player in the global tyre industry and a brand of choice, providing customer delight and continuously enhancing stakeholder value.

Perambra Plant Vision:To be the most successful profit centre through innovation, capacity expansion and by embracing newer technologies and work culture, thus synergizing our efforts to achieve corporate goals Quality policy We will achieve customer delight by striving for excellence in the quality of our products and services using a fact based approach for continual improvement that ensures all processes contribute to business success.

Values 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

.Goals

1. Creating social responsibility. 2. Learning & development. 3. Family focus. 4. Hygienic factors. 5. Superior Employee involvement & cultural building.

Apollo Key Differentiation to Other Firms: 1. Product Quality. 2. Strong Brand Equity. 3. Committed Marketing Team. 4. High Consumer Loyalty Product Segmentation in Truck Tyres. 5. Benchmarked for planning efficiency parameters. 6. Power consumption. 7. Quick response to market needs. 8. Fuel efficiency.

9. Least scrap generation.

Corporate Social Responsibility

The company has 2790 direct employees. Among them 1500 employees are local people. It increases family loyalty towards Apollo tyres. Indirectly they take 5000 persons, majority of them are locals. Apollo contributed Rs 10 lakhs to Kodakara Panchayath for drinking water supply scheme. They also provide Rs 2lakhs for assistance in settlement of dues to water authority. They conducted an eye camp for workers in Apollo Tyres Ltd. In 1996 Department for International Development [DFID] conducted a research, which reveled an alarming rate of increase in HIV infection amongst truck drivers in India. 0.03 to 0.05 million truckers are living with HIV- AIDS today. ATL in partnership with Department for International Development started pilot project in the form of health care clinic in Sanjay Gandhi Transport Nagar in the year 2000 to spread awareness about HIV-AIDS. Introduced Wrist Bands and distributed all over India as a mission for spreading AIDS awareness. They conducted summer camps for children of workers. It creates a good relationship with employers and employees family. It increases family loyalty of children towards company.

Promoters 0f the Company

Onkar S Kanwar Chairman & Managing Director, Apollo Tyres Ltd

Neeraj Kanwar** Vice Chairman & Managing Director, Apollo Tyres Ltd

T Balakrishnan* Principal Secretary (Industries) Government of Kerala

Nimesh N Kampani Chairman JM Financial Group

Dr S Narayan Former Principal Secretary to the Prime Minister of India

U S Oberoi** Chief, Corporate Affairs Apollo Tyres Ltd

Dr A K Dubey* Principal Secretary (Finance) Government of Kerala

M R B Punja Former Chairman Industrial Development Bank of India

Arun Kumar Purwar Former Chairman State Bank of India

Sunam Sarkar** Chief Financial Officer Apollo Tyres Ltd

Robert Steinmetz Former Chief of International Business Continental AG

K Jacob Thomas Managing Director Vaniamapara Rubber Co Ltd

P N Wahal Company Secretary Apollo Tyres Ltd Nominee* Wholetime Director **

Product Details

Overload Technology

1. Loadstar Super. 2. Loadstar Super Gold. 3. Loadstar Super Hercules. 4. Kaizen 50L.

Load & Mileage Technology 1. XT7. 2. XT7 Gold. 3. XT7 Haulug. 4. Amar Deluxe. 5. Amar. 6. Commando. 7. Kaizen 36L 8. Kaizen 99R plus 9. Kaizen 77R

Premium Mileage Technology

1. XT9 2. XT9 Gold 3. Amar Gold 4. Kaizen XTD 1.Champion 2.Champion Gold 3.Champion DXL 4.Amar AT Rib 5.Kaizen 27L Table 3.3

Mileage Technology Segment

Light Commercial Vehicle Overload Technology Load & Mileage Technology Premium Mileage Technology

Loadstar Super. Mile star

1. Amar Deluxe 2.Amar Gold Rib 3. XT9 4. XT9 Gold(lug) 5.Duramile (radial)

Regular Mileage

Champion Table 3.4

Passenger Car Radials Tubeless Radial Passenger Car

1. Acelere 2. Amazer XL

Tubeless Radial MUV & SUV

1. Hawks

Tube type Radial for Passenger Car

1. Amar 2. Amazer XL 3. Quantum

Tube type Radial MUV & SUV

1. Amar 2. Amazer XL 3. Storm 4. Hawks

Passenger Car & Jeep Bias 1. Armour 2. Panther 3. Gripper Maha Trooper Table 3.5

Farm

Cultivation

1. Krishak Super 2. Sarpanch

Haulage 1. Power Haul

Multipurpose 1. Farm King (Radial) 2. Krishak Premium (bias)

Tractor Trailer Types 1. Dhruv 2. Hunter

Table 3.6

ORGANIZATIONAL STRUCTURE

DETAILED STUDY OF DEPARTMENTS

Various Departments of Apollo Tyres

There is a high degree of departmentation in Apollo Tyres Ltd. The departmentation helps in specialization of work in each field. It helps in better planning and better concentration in the particular work handled by a particular department. The various departments in Apollo Tyres are as follows:

1. Human Resource 2. Purchase 3. Stores 4. Production 5. Marketing 6. Systems 7. Utility 8. Technical 9. Quality 10 Finance

4.1 HUMAN RESOURCE DEPARTMENT

Human resources and administration department is one, which facilitates smooth working of the organization by looking into human resource side and also the overall administration of organization. HR department is divided into three sections namely industrial and personal relations, security and administration. Heads of each section are in direct contact with department head.

Vision of HR Department

Vision of HR department is to be strategic partner to the business and create value for the organization by developing the human capital.

Mission of HR Department

1. To create HR policies and process which are employee friendly 2. To build a culture which is warm forthcoming and professional with a sense of ownership and pride? 3. To encourage innovative thinking. 4. To encourage transparency and team work. 5. To develop leaders at all level with general management skills. 6. To create a learning organization. 7. To develop competencies and skill through training and development. 8. To constantly raise levels of employee productivity. 9. To create HR brand 10. To work towards attaining and sustaining the best employer status.

Major Functions of HR Department

1. Recruitment 2. Selection 3. Training 4. Industrial relations 5. Welfare 6. Time office 7. Security and Safety

RECRUITMENT

In every organization the man power planning plays a vital role in the achievement of business objectives of supplier s right man for right job at right time and a right place.

The current trend demands a more comprehensive more strategic perspective to recruit utilize and converse valuable human resource. The employees are the major stake holders whose interest can and must be acknowledged by to ma nagement

Once the kinds of human resource are determined the company has to determine the place where they set responsible human resource and he and the ways through which they attract then towards the organization. Usually recruitment is done through advertisement and a good opportunity is given to the family members of the existing workers so that the loyalty for the individual and his family members can b e increased, this acts as a motivation. They are called for interview for the selection process

PROCESS OF RECRUITMENT

Recruitment process is a very difficult process as it is involved in the recruitment of right person with responsibilities and skills to the organization. This is a vital decision which the success of a company Interviews are the most crucial part of any recruitment process. Here the selector has to assess the performance of the candidate. They might have fixed the norms for selection like qualification, skills or aptitude according to each job. Here the candidates get a chance to show and make the selector aware of his skills, aptitude and qualification. In interview

they also fest the behaviour and the other qualities of the person while in an organization. Most of the organization while recruitment has a common structure or order first the application or CVS are received either through post or by person then the candidates are short listed then are invited for interviews

INTERVIEW FORMAT

Interview is the most important part where the candidates are measured and compared with the traits and competence that are prefixed by the selector and which are essential to get into that job. The person should be confident and well aware of the organization and it s environment the interviews may be conducts in may be conducted in many ways they may be

1. Chronological interview This interview based on the application or CVS received from the candidate, the candidate is asked about himself his family and his experience. 2. Competency based interview This type of interview are conducted in order to access the technical knowledge of candidate, they might may be asked about their technical knowhow and might be asked about the final year project that they have done as a part of curriculum. They must be proved themselves competent and should admit if they are unaware of any of those questions that are being asked. 3. Case study interviews These are largely used by consulting firms they can range from straight toward brain teasers to the analysis of hypothetical business

problem, how you identify they key issue, they persue the thinking time whether the candidate can developed and frame an appro priate frame work for the organization. The approach of the candidate to various situations is mainly tested in this type of interviews. Steps in recruitment 1) Receiving application This is the first step in any recruitment process. The candidates are asked to fill the application given by the organization or sometimes are asked to apply including bio - data and photograph. This helps the selector in assessing he qualification of the person and can be compared with the norms, if the persons qualification is not satisfactory they can be rejected 2) Attending assessment centres Before attending assessment centre recruiters will be sent material for it, here candidate will be tested on written English skills, verbal reasoning, and mathematical skills. They will be tested in number of ways like interviews, role playing and writing tests of candidates are successful they will proceed to step 3 &4. Unsuccessful candidates will be provided with feedback from centre on their performance.

3) Medical and fitness test In this step the candidates are asked to prove themselves fit. They are asked to undergo a medical check-up and to bring the fitness certificates, this helps the recruit to select those who are competent to do the job, especially which involves physical labour.

4) Final selection The persons who qualify all these three steps are asked to come for the final selection, here they are compared and the most competent person is selected.

Sources of recruitment Internal

Transfers Promotion Present employee Demotion External Notice at factory gate Unsolicited application Casual caller Advertisement Employment exchange Educational institution Labour contractors Private agencies Trade union

RECRUITMENT STRATEGY IN APOLLO TYRES Manpower planning

White Collar This includes the planning of top level employees. The norms for white collar jobs are;y Requisition on the registration of recruitment. y No fresh vacancy creation unless approved by the head office. y Current freezed level of management staff -270

Blue Collar This involves in planning the lower level of workers in the organization.y Recruitment on the family of retirement or expansion or death

RECRUITMENT OF INDUCTION

WHITE COLLAR

A Fresher Campus interview Short listing of candidates Personal meeting of candidates Selection of candidates Issue of letter of intent Medical test Filling of joining report Issue of appointment letter Induction schedule 15-20 days Job allocation Experience

B

internal and external source short listing of candidates interview issue of letter of indent medical test filling of joining report issue of appointment Letter Induction job allocation

BLUE COLLAR Start Recruitment normal course (Retirement) recruitment normal course (Death)

Minimum

criteria

10th completed Weight/height

Medical test Selection of candidates Abnormal course 1st year production apprentice (>270 days attendance) 2nd year production Apprentice (>270 days attendance) Promotion grade 6 to 1 grade induction schedule 3 days external faculty

End

2. Selection

a. Management staff Technical- B.tech, Graduate engineer trainee. on technical CA /ICWA / MSW /MBA / MA: Executive trainee After training they are absorbed as officer. The criteria include Consistency in academic performance, performance in Group discussion and Personal interview. B.Employee Children Skill Development Scheme. Three year training as production apprentice. Minimum qualification of eight standard , physical fitness (height 168 cm, weight 50 kg) c. Induction plan Workers - 2 days induction training Associate managers - 7 days Management staff - 15 days t o one month ( varies at various levels)

3. TRAINING IN APOLLO Both managers and workers are given training. The managers are given both internal and external training. Workers are given only internal training. The training is provided only by experts. Initially the training agencies called the track schedule of the persons from Human Resource Department. All the employees who ha ve not undergone this are sent For training. The training system includes: a. Need Identification b. Validation of need c. Annual training plan

d. Selection and preparation e. Training inspect assessment The workers are given both on the job and of the job training .There will be induction training for both managers as well as workers. Introduction training for managers will be 15 days where as it is only 2 days for works. A separate record for knowing the training that the person has undergone .After considering performance appraisal report candidates for training will be selected. The selection is done by the Human Resource Department on the basis of the advance given by the department heads. The company spends more than Rs.20 lakhs for training. The managers are given training for four days every year. According to the changing conditions of which is ensured by providing them a feed back system.Steps in Training

Organisational Analysis Study of the entire organisation in terms of its objectives, its resources, resources allocation and utilization growt h potential, it environment Operation Analysis It is a systematic and detailed analysis of job. It is conducted mainly to asses job contents, skills and aptitude acquired to perform jobs ,the knowledge the work behaviour. Man Analysis The person to be trained, changes required in the knowledge, skills and aptitude of the employees are to be determined.

Objectives of Training a. To provide basic knowledge and skills required to perform a specific task. b. To provide information on latest concepts and techniques to employees for performing efficiently in present position. c. To build second line officers by giving training to occupy responsible positions in future.

Industrial Relations Industrial Relation

Industrial relation is a very essential part of any organisation. It should be treated as a part of management and not as a discipline or activity apart from management. It is a relationship that emerges out of day to day worki ng and association of labours and economic efficiency and motivation, productivity and development of the employee loyalty and mutual trust .It helps in the development and maintenance of harmonious relationship between employer and employees of an organization .It ensures industrial peace. It safeguards the interest of employees in an organisation. Industrial democracy is maintained. It also encourages collective bargaining and has the merit of boosting the morale of the employees. The main unions which are recognized by the Apollo Tyres Ltd are: ATSWN (Apollo Tyres Staff and Workers Union) ATEU ATMS (Apollo Tyres Employee Union) (Apollo Tyres Mazdoor Sangh)

ATWN

(Apollo Tyres Workers Movement)

The management recognizes those trade unions w hich gets at least 20% of vote of total strength. The management has introduced a long term settlement (LTS) plan. It is a collective bargaining agreement. The decisions are taken jointly by the trade unions and the management. Also a part of the HR initiates employees involving them in productivity related issues such as quality circles and professional circles, a social gathering such as factory day and other celebration over coverage participation. Among the 4 unions the recognized unions are ATWM and ATEU.WELFARE

The Apollo Tyres provides good welfare service to its employees. The company runs a subsidized canteen on contract basis. Rest rooms with lockers and washing facility arts and sports club, well maintained library are the other facilities provided.

The workers are given transportation facility to commute from different distinctions for which they have to pay only a nominal amount .All employees drawing a salary below Rs.6000 are benefited by the accidental policy and med claim policy. The organization takes the health aspects of the workers in to consideration. They get a 200ml milk packet during their night shift, to retain their lost energy. This also acts as a motivational factor for employees to work in the

night shift. Cakes of soaps are distributed among the employees to promote cleanliness which is free of cost.MANAGEMENT STAFF

1. Group Hospitalization Scheme 2. Group personal accidental policy 3. 2 wheeler scheme 40% borne by the company 4. Car scheme assistant manager and other superior grade 4% borne by the company. 5. Superior annuation assistant manager and other superior grade. 6. Employees self development scheme.

WORKERS

1. Group personal accidental policy 2. Medi claim 3. Housing loan-interest subsidy 50% 4. 2 wheeler loan-interest subsidy 50% 5. Financial assistance by co -operative society 6. Periodical medical check-up

TIME OFFICE

This is concerned with registering the time of arrival of the workers and also the time of arrival of the workers and also the time of their leaving the company. This aids activities like payment of wages and incentives

Purchasing system is also used in addition to recording in the book. The badge of each employee is punched at the time of arrival and leaving the organization. Attendance is cross checked with the attendance register of the various sections with those of the workmen performance reports are maintained in each section. These ar e done with a view to reduce the number of absentee employees and also to motivate them to increase production. A leave book is maintained which contains details of leave balance, leave credited and leav e awaited. The daily attendance register is verified by the supervisor, shift engineer and shifts superintendent of the concerned department. WORKING HOURS A B C D shift shift shift shift 6 am 2 pm 10 pm 9 am to to to to 2 pm 10 pm 6 am 5 pm

(General shift)

Usually trainees are put in the general shift)

SECURITY AND SAFETY

Security is concerned with the physical movement of men and material security staff headed by the chief security single officer. To facilitate the security single point entry is adapted control visitors for materials, separate gate passes are issued.ACCOUNTABILITIES OF CHIEF SECURITY

a. To monitor and control all inward and outward flow of vehicles, materials and persons. b. Deployment of contract work force to various departments for routine as well as project work. c. Ensure high degree of liaison with police, local administration, fire force and government authorities. d. Up keep of environment management system, including housekeeping of the plant. e. Maintain the database of all in the direct work force including contract workmen. f. Keep strict vigilance and administrative intelligence for smooth functioning of the plant in a unionized environment.

The organization follows all the provisions under the Factor Act 1948. The plant is well equipped with safety machines and directions are placed at a noticeable point in and around the plant premises. Fire extin guishers are placed at reachable points and employees are well trained to use these if necessity arises. The workers in the production department are given mask, safety gowns and shoes. In Apollo a separate book is given to each employee which prescribes c ertain accident free working environment. No major accidents have occurred in the plant for the past 10 years.

SAFETY POLICY a. Accidents resulting in personal injury and damage to property and equipment must be presented by every reasonable means available. b. All personal injuries are checked. The protection of human life demands a complete elimination of accidents. c. Officers of all levels have a primary responsibility for the safety and wellbeing of their co-workers. d. The ABC safety method is used in the organisation- the Always be safety method.Six Sigma

Six sigma was introduced on April 16th 2007. It is basically meant for increased production and for running the organization successfully. It is for finding out areas where unnecessary expenses are occurri ng and for reducing it. It is also concerned with usage of scientific techniques with a disciplinary approach. A six sigma organization means the defects in the production of one million cases are below 3.34%. When the employees are trained through six sig ma, they come into contact with the machineries in the appropriate manner, thus the organization will achieve an unexpected growth. This helps to find the defects in the production and to take corrective actions for its removal. It also helps to understand the fact that consumers are the owners and thus it is utmost necessary to produce quality goods.. Jyothirgamaya

On each working day about 6 -7 employees are selected for training in a classroom atmosphere, about the quality, productivity and scrap reduction. The employees are given training especially about the company an d the tyre industry in general. Jyotirgamaya provide information regarding the changes happening in the industrial field. Its objective is to give training f or all the employees in the unit within a period of one year.

Production department

The production department forms the backbone of any manufacturing organization. Apollo Tyres Ltd. has adapted the latest technology in various areas of operations to ensure improved production. The production target is fixed as per the directions of the head office. At present the daily production target of Apollo Tyres is 86 meric tones per day. Production department runs 3 shifts for workmen. Every month end production in tends are obtained for marketing department of ATL from Delhi stating how much tyres are to be produced during the next month and which type tyres are to be produced.ATL primarily focus on bias production and frame radial production. Production department is responsible for maintaining quality of production and optimum level of production. The production planning starts with the receipt of production ticket from Delhi which contains the quality required for operation. The requirement is then processed in the planning department and then converted into equivalent tyre requirements. This is then checked for feasibility depending on the moulds available for production, and then the production schedule is finalized.

The production department is divided into 3 main divisions based on the stages of tyre manufacturing process. Each division monitors the following: Division 1 - Raw material store, Banbury, mixing. Division 2 - Thread preparation, Bead preparation, Fabric Dipping, Tyre Building. Division 3 - Curing, Post Cure Inflation, Warehousing.

Composition of Tyres:-

50% Rubber 23% Carbon 11% Fabric 5% Process oil 5% Bead wire 3% Zinc oxide 1% Stearicacid 2% Sulphur & other accelerator Pneumatic tyre is a high performance composite product. The raw materials used for its manufacture can be divided into 3 groups.

Rubber & Rubber additives. Fabric reinforcement (Tyre cords) Wire reinforcement (Bead Wire

Materials used in Rubber Compound The essential ingredients in rubber

compound are as given below: a) Raw rubber or natural rubber b) Vulcanized rubber c) Carbon Black d) Zinc oxide e) Accelerators f) Activators g) Reinforcing agents h) Process oils or Aromatic oils(make easy the mixing) i) Anti- degrader

j) Anti-oxidants k) Fillers l) Process aids m) Special additives n) Auxiliary materials

a) Raw Rubber:Rubber as such is a soft semi solid material which does not have any properties required for a tyre like elasticity, hardness, resistance, etc. Natural rubber occupies the top position as the general rubber. It gives good strength, tear, wear and flex, resistance, good process ability and low heat built - up and good abrasion resistance. Synthetic butadiene rubber (SBR) is the first synthetic rubber developed. It offers good strength and tear, good crack, initiation, resistance, well weather resistance and fine process ability. SBR is also recommended for bead compounds for higher hardness.

b) Vulcanizing agents:Raw rubber when heated with vulcanizing agents become elastic and harder and this process is called vulcanizing. During vulcanizing, the long chain rubber molecules are cross linked to form a network thereby making it elastic. The cross links are generally achieved by adding sulphur and sulphur donors.

c) Carbon Black:Carbon black is the predominant reinforcing filler used in rubber compounds. Through the addition of carbon black to the rubber compound, durability and strength are significantly improved. Improvement in rubber properties is a function of the physical and chemical characteristics of carbon black. Carbon black s most important fundamental characteristics are aggregate size and shape (structure), particle size, surface activity, and porosity.

d) Zinc oxide:Zinc oxide is an essential chemical used in rubber compound and help to fo rm proper shape of products. Zinc oxide is used in the manufacturing of plastic and

rubber products durable. Zinc oxide is used in rubber and latex compounds as an activator in the curing and vulcanization process. Zinc oxide is used as an enforcing agent adding durability and abrasion resistance. Zinc oxide is a raw material which aids in protecting rubber from harmful UV rays.

e) Accelerators:To increase the speed of vulcanization, accelerator is used. Accelerators are classified on the basis of the speed of vulcanization imparted by it. It is also classified as Primary Accelerator and Secondary Accelerator. A Secondary Accelerator is one, which is used as the booster to the Primary Accelerator.

f) Activators:Activators are used to improve efficiency of accelerator and it improves the elasticity and the strength of vulcanizing agent. The general activators are Zinc oxide and stearic acid.

g) Reinforcing agents:A vulcanized thus made of raw rubber, vulcanizin g agents, accelerators and activators are still soft like rubber band. For improving the strength, hardness, tear and wear and flex properties suitable for a tyre compound, reinforcing agents are used. Reinforcing agents are carbon black and silica.Materials used for tyre re- enforcement:-

Caress and bead materials used in a tyre are called tyre re -in forcers. Textiles in the form of continuous filaments are the primary material for the tyre carcass. To form a ply, sufficient number of continuous filament s is twisted together. To form a cord, two or more piles are twisted together. Cords are then woven into fabrics in special looms, with cords in longitudinal direction called warp and

thin cotton filaments in the opposite direction called weft. Bead wire i s a especially alloy steel wire bronze plating used as a bead wire for tyre.

h) Process oils:Incorporation of re-in forcing agents in a rubber is often difficult and to facilitate easy incorporation process, oils are used. These are also used to improve compound process ability at calendar and extruder.

i) Anti-degradedness:Most of the rubbers are highly susceptible to degradation when subjected to heat, flex, and weather and to take care of these anti - degradedness are added.

j) Anti-oxidants:It confers very good heat resistance and good flex cracking resistance. It disperses readily in rubber and does not bloom. It is used in automotive tubes, curing bags and in mechanical rubber goods.

k) Fillers:Often, though not common, low cost substance ca lled fillers are added to reduce compound cost. Carbon black and reinforcing clay are the normally used fillers.

l) Process aids:Process aids are those substances that are added to rubber compounds for reducing viscosity of the stock and for improving p rocess safety. m) Special additives:-

Sometimes special additives like bounding agents, hardening agents, and corrosion inhibitor etc. are added for specific vulcanization properties.

n) Auxiliary materials:-

Major auxiliary materials used in the tyre manufacturing process are dip solution, chemicals, solvents, lubricants and seperants.Tyre Manufacturing Process:-

Tyre Manufacturing Process is the art of processing the above materials and assembling the various components into the final product. The pr ocess of tyre manufacturing is complicated by numerous raw materials, equipments and processes used for the same. The process involved in the manufacture of a bias truck is as follows:-

1. Compound Mixing:-

A Compound is made by mixing the required additives into rubber. This mixing accomplishes in to two or more steps using a Banbury mixer. The mixing is done in the chamber of the Banbury mixer under high pressure using two rotors of the machine so that the ingredients are uniformly dispersed inside the r ubber matrix. Different rubber compounds are used in different components of tyre. The rubber compound is thus used for the preparation of different components in subsequent stages of manufacturing. This mixing is accomplished by various stages which are as follows:-

First stage: first stage takes place at the second floor of the production unit, where there is a Banbury which is a cone shaped machine .The carbon is cut in different weights and put in Banbury, where it gets processed. Different weights are required for different combinations, which is displayed through a chart.

Second stage: the second stage of the process takes place at first floor, where the mixed combination of the carbon arrives from the second floor. Required

rubber and sulphur are added to this mixture and processed. During this process a computer terminal displays the current heat, pressure and operations which help the operator to monitor it.

Third stage: the third stage takes place at the ground floor, where the above stated mixture arrives and is processed in a mill. This combination is dipped in a soap solution so that they dont stick to each other. Then they are fanned and finally they get collected towards the endear sample is cut from it and sent to the lab where they are tes ted. If it is tested OK then only they are used or else they are sent upwards again for reprocessing. The mixing takes place under shear at 50psi. The mixed batch is dumped on to a sheet mill and sheeted out. Different compounds are used for different type s of tyres. The major components of a bias truck tyre are: 1. Tread: made from rubber compound. 2. Side Wall: made from rubber compound. 3. Tread Cushion: made from rubber compound. 4. Plies: made from dipped tyre cord and compound. 5. Chafer: made from dipped square woven fabric and compound. 6. Flipper: made from dip rubber code and compound. 7. Filler: made from rubber compound. 8. Bead: made from bead wire and rubber compound. 9. Squeegee: made from rubber compound. 10. Breakers: made from dipped tyre cord and rubber compound.

The compound prepared in the Banbury goes to the respective equipment and process for further processing.

2. Fabric dipping:-

Raw fabric (nylon) received is having very poor adhesion to the rubber compound and has poor dimensional stability. During the dipping process an adhesive coating (eg. Resorcinol, formaldehyde, VP latex dip) is applied to the surface of the fabric to improve adhesion. The fabric is also stretched and hot set to increase dimensional stability. Dipping is ac complished in a dipped unit and the dipped fabric is then used for the preparation of different components as mentioned above.

3. Extrusion:-

Here components of the tyre like tread and sidewall are prepared from rubber components using as 8 extruder. Ext rusion is the process by which rubber compound is given a definite continuous shape. It is then cooled and cut to required length, which is used in the assembling of the tyre at tyre building. Extruders are distinguished by the diameter of their screws and are a single or dual type. a. Single Extruder Rubber compounds after being broken down and warmed up on mills , are fed in to the screw of the extruder from which with the help of dies , produces a green shape of treads , sidewalls, and other strips as per specified dimensions and contours , width , gauge and weights . These strips are cooled in water sprayed conveyors and then cut into specified lengths with the help of skiver (rotary cutting knife) and booked in metal trays or wrapped in cotton liners. T he word green denote uncured rubber (i.e. Non vulcanized)

b. Dual Extruder Two parts 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 into a predetermined shape. The advantage of the dual extruder is that two rubber compounds of completely different composition can be extruded.

4. Calendaring:-

Fabric calendaring is the process of coating both sides of hot dipped fabric using rubber compounds. This is accomplished using a three roll calendar. The coated fabric is cooled and wound in liners to avoid sticking. This goes to the next stage for ply cutting.5. Ply cutting:-

For assembling a tyre several plies are used eg; A 16 PR nylon truck tyre uses 8 piles and 2 breakers. Each ply is cut from the coated fabric rolls prepared by calendaring. The process of ply cutting is accomplished in a bias cutter. Each ply is cut a definite width and angle and wound in liners. The cut plies then go to roll calendar for squeegee application. Compounds like chafer and flipper are also made. These are further slit using a slitter into smaller widths and wound into rolls. Chafer rolls from slitter go to the tyre building and flipper goes into the bead flipping.

6. Squeegee Calendaring / Squeegee Application:-

Squeegee Calendaring is the process of making thin sheet of rubber compounds usually by using a squeegee roll calendaring. It is wound in liners and the squeegee rolls are sent to tyre building for assembling. The ply squeegee application on to the cut plies is accomplished u sing squeegee application tables.

7. Bead Preparation:-

The bead wire is coated with rubber compound in a T - head extruder and wound into coils of required dimension. The coiled beads are further applied with rubber and calendared fabric strips of approp riate dimensions. Bead Preparation consists of 3 stages:1. Bead winding 2. Bead filtering 3. Bead flipping

1. Bead winding

Here several wires are passed through the head of a bead extruder and coated with rubber compound. The coated tape so formed is wound into bundles of definite turns and strands and of definite diameter. The process is accomplished using a machine called the bead winding machine.

2. Bead filtering:Here a triangular shaped continuous rubber profile (called bead filler) is extruded. It is applied on to the bead bundle using a filtering machine.

3. Bead flipping:The flipper prepared at the bias cutter and slitter is applied around the filtered bead bundle. This is accomplished using a bead bundle in a bead flipping machine.

8. Tyre Building / Tyre Assembling:-

Tyre building is the process of assembling the various compounds into the semi finished products called green tyre. This is done in a tyre building machine. The component like Drum squeegee, plies with squeegee applied on it to are assembled from the end and locked in using the ply ends, breaker and chafer are applied next. Finally the tread and side walls are applied. The assembling (green tyre) is taken out after collapsing the drum.

9. Tyre Curing:-

The green tyre is inspected and then applied with a lubricant on the inside and ant blemish paint on the outside wall area. The green tyre is also used to facilitate easy removal of any trapped air during the final shaping and moulding operation. The green tyre is shaped and given final contour using the appropriate tyre moulds (fitted to tyre curing presses) by the application of pressure and temperature. The rubber compound gets vulcanized during curing and become tough and elastic and provides all the de cided property upon the size of the tyre varying from 18 minute for a passenger car tyre to one hour for truck tyres.

11. Post Curing Inflation:-

Nylon tyres after press cutting are kept under high pressure inflation to help shape retention. This process of cooling the tyre under high inflation pressure is called post curing inflation (PCI).

12. Inspection:-

The tyre after Post Curing Inflation is subjected to rest trimming. The tyre are then inspected 100% for visual defects. The tyres are also statica lly sampled and tested for conformance to B/S or company specification and warehoused.

Major losses during production a) Breakdown of machineries b) Loss of time for setting up of machine c) Loss due to difference of machine speed d) Loss due to stoppage of production e) Loss due to mistakes and correction of mistakes

Production facility is the backbone of any manufacturing based organization. Apollo tyres are very much improved in production capacity. The per day production of Apollo tyres ltd is 270 tones. This achievement is only possible because of the hard work of employees.Production Planning & Control Department: -

Production planning and control department is responsible for fixing monthly production levels, meeting production targets, scheduling m achines as per the requirements, employees developing subordinates and the preparation of raw material requirements based on monthly production ticket. The resources in terms of machines, men, material etc. Used in a tyre plant run in to several crores and it is necessary to make best possible use of these resources to achieve maximum economy in production cost. The main objective of production planning and control department is therefore to ensure optimum utilization of those resources as well as to prevent capital locked up in process inventory. Other function of this department includes; 1. Preparation of monthly production plans. 2. Communication of organizational goals down the line.

3. Prepare adjust and issue of different operations based on the progr ams, inventories, programs of work and specifications. 4. Follow up programs of work in all sections. 5. Report relevant details and assist to maintain steady progress of work. 6. Take physical inventories from the stores of finished goods and raw materials. 7. Maintain records of inventories. 8. Report shortage, rejection, and delay in the operations and take corrective measures. 9. Maintain good house keeping. 10. Ensure that no material is leftover when size changes occur.

11. Keep record of non-moving material, unidentified material, scrap generated, disposal instruction, report follow up actions and to clean up materials. 12. Preparation of raw material requirement based on monthly production ticket. Production programme:Liaison with marketing and formulation of production programme as per sales forecast. The production programme is prepared based on the following: 1) Machine capacity 2) Labour required. 3) Raw material requirements 4) Equipment & other tools required for manufacturing (moulds , drums etc.)

Raw Materials:-

It is the duty of the Production Planning and Control department to liaison with material control & technical departments for requirement of raw materials as per the consumption pattern. It should also authorize the RMS for issue of raw materials to production floor. Scheduling:Scheduling in brief is determination of 1) When a job will be done. 2) Where to do the job( in case where there is more than one machine) 3) How much to do in one lot.

Machine Scheduling includes day to day scheduling of machine loading in the most optimum level. Review of progress and initiation of action to remove bottle necks planning and control of in process inventory at optimum level etc. are part of scheduling function of production planning and control department. Machines It is the responsibility of the Production Planning and Control department to review of machine capacity and its limitation with respect to production programme. It has to initiate corrective actions as well. It also has t o asses requirement of material handling equipment & storage systems and

arrange for its procurement whenever necessary. Production programme:-Liaison with marketing and formulation of production programme as per sales forecast. The production programme i s prepared based on the following: 1) Machine capacity 2) Labor required. 3) Raw material requirements 4) Equipment & other tools required for manufacturing (moulds, drums etc.)

4. 3

Purchase department

Structure of Purchase Department

The main function of the purchase department is to provide right material at right time in right place at right quantity. The department is concerned with the purchase of indigenous and imported materials. Engineering spares, general engineering and miscellaneous items other than 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 least communication facilities and computers. The main items of purchases are: 1. Engineering Spares 2. Consumables

3. Furnace oil 4. Diesel 5. Chemicals 6. Lubricants 7. Other raw materials

The purchase may be corporate purchase or plant purchase. Under corporate purchase the raw materials are purchased after considering what the market require for the month. Under plant purchases, purchase may be of stock item or non stock item. Stock items are purchased for regular use. They are having material codes. T hey are purchased after considering the reorder level, reorder quantity, lead time etc. For non stock items there is no regular purchase. Different departments have to prepare purchase requisitions. The items purchased are engineering items, oils and lubricants, local raw materials, import of spares etc.

Vendor Selection

This includes a list of steps included in selecting the right vendor for the stock items identified as critical by department to enable a smooth functioning of plant. Vendors are generally identified as 1. Manufacturers 2. Dealers 3. Firms offering various services Manufactures are Divided into Two:1. OEM (original equipment manufacturers)

The OEM shall be identified as a vendor for the supply of equipments, spares, components etc. 2. OCM (original component manufactures):

For all spares, components and consumables, attempts are made to identify the manufacturer and source the items directly from them so as to get quality products or services at optimum cost. Information available on suppliers manuals, catalogs, details available on nameplate of machine etc shall be used for the purpose.Approval of Vendors

All OEM vendors who have supplied the machinery equipments and instruments are approved vendors for sourcing the respective compo nents and spares. All original component manufactures are treated as approves/ vendors. Further consideration for approval includes 1. Vendors supplying goods satisfactorily for last five years. 2. All authorized dealers of OEM/OCM shall be treated as appr oved vendors 3. For the order of finished goods specified brands are approved.Purchasing Records

1. Purchase order record:- purchase orders of material bought 2. Vendor record:- list of all vendors and their complete mailing addresses 3. Blue print and specification record drawing: - many items are purchased by blueprint specification are kept in separate files with index showing their location and where the copies have been sent. Thus if repeat order to old supplier is to be made, it is not necessary to send new copies of the specification.

4. Contract file: - certain goods may be bought under term contract, if so; the purchasing department must maintain a record of such contract.

Purchasing department is directly under the control of purchase manager. T his department is doing all the purchase for production and engineering department .Providing the right material at the right time is very difficult. But because of the SAP system work of this department is easier than before.

4.4 STORES DEPARTMENT

Structure of Raw Materials In Store Department Activities of Raw Material Department:

1. Receipts

2. Issue 3. Identification and storage 4. Outside mixing 5. Stock transfer 6. Inventory maintenance 7. Scrap disposal 8. Handling of rejected items 9. Open delivery report

Process:-Receipt, handling, storage packaging forwarding and delivery of

material to internal and external customers with proper documentation to meet their requirements.Purpose : - To supply right material in the right time to produce the right quality

product without any interruption.Scope : - Receipt handling storage and issue of raw materials and to the

customer.Raw Material Handling Process:

1. Upon receipt of raw material, the document related to transporter and supply is verified for the authenticity of the supply. 2. Identification of the supply with full details of material code, date of receipt, suppliers name and truck name will be carried out and transferred to the pre identification location. 3. Upon receipt of the raw materials GR will be prepared. 4. Based on the GR, quality assurance will be done on the samples as per the pre determined standards and OK the material if the results are meeting the requirements by releasing the GR.

5. The material if rejected from lab will be sent back to supplier and all accepted material will be accounted in the inventory. 6. Issue of raw materials will be carried out to internal customers and ex ternal customers based on the request received from the customers if applicable.

Various Raw Materials Used in the Manufacturing of Tyres: -

1. Polymers: - natural rubbers, synthetic rubber 2. Fillers, carbon back, reinforcing clays. 3. Process oil 4. Curing agents /Sulphur 5. Accelerators/ activators 6. Antioxidants/ antiozonents (waxes) 7. Ret ardors 8. Pepticers for natural rubber mastication 9. Fabrics: nylon cord 10. bead wire spools 11. Solvents for cements and solution

Miscellaneous items like paints, colours , crayon , scrap flakes etc. (most of the raw materials are imported from Brazil, Korea, Malaysia, Germany ,Uruguaya and Mysore).Receipt of Raw Materials Verification of Raw Material 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 number , suppliers name , description of item , challan quality , challan number and date or LR number and date , truck register number , date and time of arrival, date and time of departure.Weighment (by the Computerized Weigh Bridge)

Security shall inform raw materials stores about the arrival of the vehicles at the gate. The security guard and a representative from RMS shall record weighment of trucks jointly. The weighment slip shall indicate the following; Serial number, time and date of receipt, suppliers name , gross weight with materials , SIR number and date. After recording the above details in the computerized weighing balance the vehicles shall be directed to the respective unloading bay. ATL weighment will be done in a weighbridge closer to the factory under the supervision of security and RMS personnel aft er ensuring that the weigh bridges possess a valid certificate from weight and measure department. Both security and RMS personnel shall sign on the computerized weighment slip. One copy of the wieghment slip will be filed in RMS along with concerned delivery challan and the second copy will be returned by security department.SIPOC

S-supplier: corporate purchase I - Input: raw material P Process: receipt handling, storage, preservation, and issue of raw materials O Output: confirming raw material receipt, storage, and delivery. C Customer: manufacturing, mixing centre other unit of ATL and internal customer

Activities in Raw Material Stores

Activities

Responsibility

Initial weighment

RMS and security

Verification of both commercial RMS and quality documents Unloading and verification of RMS packets Final weighment and generation RMS and security of weighment slip Acknowledgement receipt to transporter Identification and storage Generation of GR RMS RMS of formal RMS

quality certification responsibility RMS Handing over of duplicate copy RMS of excise invoice to departmentTable 4.3.1

excise

For generation of GR the following are required Purchase order in SAP Purchase department

Invoice /delivery note from supplier Supplier /purchase department and bill of entry for imported items Weighment slipActivity

RMSResponsibility

Inventory updating

SAP system

Table 4.3.2

Issue

Activity

Responsibility

Reservation of materials to PPC be issued on daily basis Physical issue of quality RMS certified materials to

production guided by FIFO Posting of issued quantity RMS against reservation Inventory Updating SAP SystemTable 4.3.3

Identification and Storage

Activity

Responsibility

Identification storage

and RMS

Table 4.3.4

This activity is done along with receipt of materials. Each consignment is fully identified with tags or stickers with respect to supplier, truck number, date of receipt and shelf life. Each item is to be stored at the right place, which will help follow FIFO system while issuing. This activity is not connected to SAP system.

Outside Mixing Activity Responsibility

Approval of mixing centre Entering into contract with the party

TECH HEAD COMM

Decision of quantity to be mixed per day Sending supervisors to mixing centre and issue of specification

PLANT HEAD

TECH

Fixing

contract

carriers

for

HEAD COMM

transportation Sending raw materials against RMS

PO s by raising excise challans Receiving mixed compounds RMS

against PO s as in the e case of raw materials

Day

to

day

coordination

of

RMS

activities Schedule of mixing patterns Release of fixing for PO s Reconciliation of input /output PPC PURCHASE DEPARTMENT COSTING

Table 4.3.5

Stock Transfer to Sister Concern Activity Responsibility

As

required ,

by

purchase RMS stock

department

they

transfer raw materials and dipped fabric to sister concern by raising invoices Release of purchase order to PURCHASE DEPARTMENT stock transfer In the case of stock transfer of PPC semi finished goods PO s will be raised by PPC Invoices will be raised for this RMS transition tooTable 4.3.6

Inventory Maintenance

Activity

Responsibility

Perpetual

inventory

RMS

will be recorded under SAP system

Table 4.3.7

Scrap Disposal System Activity Responsibility

Award of contract for disposal of scrap Scrap maintenance Production scrap account

HEAD OFFICE

SAP SYSTEM/ RMS

PRODUCTION

generated is entered into SAP Scrap generated and RMS

entered in the system by the production is being transferred to scrap yard in system by RMS Follow up with scrap RMS

contractor for lifting of lifting of scrap Invoice disposal making while RMS

Table 4.3.8

Handling of Rejected Items Activity Responsibility

Rejected items are returned to the party as instructed by purchase department Non modvat items are

RMS

RMS

returned on NA delivery note Excisable items are returned by raising invoices in SAPTable 4.3.9 Open Delivery Report

RMS

Activity

Responsibility

Open delivery report

RMSTable 4.3.10

Engineering Stores

Engineering goods stores is responsible for storing the necessary spare parts, components required for smooth functioning of plant on receipt of indent from production department , the engineering stores arranges for its release . The inventory management technique used is VED analysis. Almost all the activities of this department are computerized . The purchase department is initiated whenever reorder level is reached. A buffer stock is always maintained in the store.

Another system followed in engineerin g stores is VMI vendor maintain inventory. In this system the vendor supply the materials in large quantities and payment is made only for consumed items.Process: Receipt , handling , storage and issue of incoming engineering

materials.Purpose: On time delivery of engineering spares , consumables , lubricants and

chemicals to users.Scope: This process starts with the creation of stock item and ends with issue of

materials.4.3.3 Finished Goods Stores Receipt

1) 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: Material code Description Quantity 2) The original copy of the transfer note will be issued to the central excise wing after entering the details in stock statement, duplicate will be given back to the production and triplicate will be issued to the production planning . 3) One staff each from production and FGS/TTF will separately verify the quantity size, ply rating , seconds , of the finished goods and compare against the entry in the transfer note. 4) Removal of finished goods : The finished goods required for dispatch kept at the transferring area after preparing the finished goods transfer note will be

removed to the loading bay and balance will be removed to stores for storage after completing the packing for required material.

Distribution of Finished Goods Purpose : To describe detailed procedure for distribution of finished goods in

finished goods stores.Scope : To apply the above procedure to all finished goods in finished goods

stores.Reference . : quality manual section Responsibility : head of the department Method:-

1. SCM department at H.O. give dispatch schedule on day to day basis. 2. The destination to which trucks are required is arranged day in advance. 3. Load slips are prepared as per the plan made. 4. Store man will keep the load as per the load slips at the loading bay. 5. Staff of the FGS ,TTF , security and representative of transporter will check the loads , kept separately for size, ply and quantity. 6. After checking , the load slip will be signed by the staff and given for preparing transport documents and goods will be loaded on the lorries. 7. The lorries will be inspected for cleanliness of the platform to ensure that ther are no item , which will damage or dirty the tyres . All trucks dispatched to the outstation are covered using tarpaulin and tied safely before leaving the factory premises. 8. Dispatch documentation: The load slip is handed over to the representative of the transporter for giving the lorry receipt number then it comes for preparation of invoice cum delivery challan through computer.

9. Sales tax / road permits are handed over to transporter where they are required. 10. List of serial numbers of the tyres being dispatched will be provided wherever necessary. 11. 12All documents required for transportation are prepared and handed over to the transporter after getting proper acknowledgement and lorry receipt from him

SYSTEM DEPARTMET

Technology plays a critical role in the fut ure proofing of an organisation because every problem needs to be solved insta ntly and every opportunity must be me in a flash .Systems department in ATL de als with the computerization of all the activities of the company.DEPUTY MANAGER

OFFICERS

OFFICERS

ASSISTANTS

ORGANIZATIONAL STRUCTURE OF SYSTEM All the IT initiatives in Apollo are in concurrence with the overall corporate strategy. As an integral part of this IT drives across the company. ATL implemented SAP in 2003 in a record time of nine months, which is aimed to touch all their employees. The head of the company. ATL implemented SAP in 2003 in a record time of nine months, which is aimed to touch all their employees. The head of the systems department monitors all the software requirements of each department with the help of executives working under him. Systems department consist of numerous PCs, which are interconnected through the local network. The functions of the system department are as follows: To give requirements of software according to the needs of various departments to the software vendors. Maintains back up of important data required for each user. Maintenance of Desktop PCs. Solves connectivity problems. Manages LAN, files sharing etc. Sets user rights, accessibility rights and time. Keeps contacts with vendors or outside agencies for further additions of computers, hardware maintenance etc.

SAP: Systems Application product in Data processing (SAP) is the s in Software tool used in ATL. It was implemented in a record time of 8 months.ATL directly introduced the 4.7 version of enterprise solution. Introduction of SAP has enabled ATL to connect a vast network of 140centers by converting them in to a single source data centre. ATL

currently uses the SAP R/3 4.7 version and the server is located in Gurgaon.

One of the notable features is that ATL has received the BS7799 certification, which is an Information Security Certification that helps the organization to proceed legally, if it encounters any data loss. It is globally acclaimed standard for information security practice, developed by British Standards Institution .

FINANCE DEPARTMENT

The commercial department is mainly concerned with financial activities & the supply chain functions. The financial functions consists of payroll, general accounts, costing, etc & purchasing of raw materials & ware house constitute the supply chain functions. All the functions are head ed through group managers. Purchasing of spare parts, production consumables & general engineering items are obtained through the Purchase request to the purchase department. The reorder level for each item is determined & whenever it reaches this level, the requisition will be sent to the purchase department. The raw material store releases the material or the request from the production & planning department. The accounts section is divided into Excise, costing & payroll.

STRUCTURE OF FINANCE DEPARTMENT

The corporate office situated at Gurgaon does most of the accounting & taxations jobs of ATL. At Perambra plant there is separate accounting & finance department. This department deals with salary, wages & costing. Excise duty of the raw materials also comes under this department. The strong performance of Apollo is combination of high growth in sales along with enhanced operation management , better working capital management , aggressive marketing and overall cost reduction measures adopted by the Company.1) Payroll

The duty of the executive of the payroll section is to perform salary calculations. All such calculations are done with the help of SAP software. This helps the executive to monitor the time office section where the attendance of the workers is registered. When a person is appointed by personal department

they will specify his amount of pay, allowances payable and the same is intimated to the payroll section. Function of Payroll section include 1. Salary calculations 2. Employee states insurance (ESI)calculation 3. Provident fund calculations 4. Income tax calculations

2) Costing

The major objectives of the costing section are to maintain accuracy of quality reports and the preparation of MIS in quantity cost in order to submit the same to the management. Costing section maintains performs the function of keeping the stock ledger. The functions of costing section include, preparation of MIS, ascertaining the product cost etc. the main aim of MIS preparation is to provide information to the management to the management, regarding the productions and allied data. It contain the details of the actual number of Tyres manufactured, budgeted production etc... upon the cost of raw materials, power, fuel etc.3) Excise

The main function of this section is excise registration, at the beginning of the production, according to the central excise rules and central VAT rules. Excise duty is paid twice in month. The Functions of Excise Section are 1. Liaison worker with central excise department 2. Discharge of excise duty on product goods 3. Monitors excise related changes

4. Finished goods stock register maintenance 5. Clarification of excise relate works 6. Preparation of weekly reports & maintains records of exports related works.

QUALITY ASSURANCE DEPARTMENT

Quality is the totality of characteristics of an entity that bears on its ability to satisfy stated implied needs. Quality is referred to fitness for use or fitness for purpose or customer satisfaction or conformance to requirement. QA is the well planned and systematic activities implemented within the quality system and demonstrated as needed to provide adequate confidence that an entity will fulfil requir ement for quality. For international trade transaction ISO

certification has become inevitable. ATL has got the privilege to have ISO 9001 (1994) covers the quality system and model for QA in design, develop ment, production, installation, and servicing. ATL perambra has well-functioned QA

department. They divided the whole plant into three divisions . Each division comes under a Quality Auditor says a 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 quality activities and related results comply with planned arrangement and whether these arrangement are implemented effectively and are suitable t o achieve objectives if any deviation is there, then they will take corrective action to eliminate the cause 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.

Other function includes:

Raw Materials Quality of all raw materials received are tested in the laboratory consists of three different section.A) Fabric laboratory

The laboratory tests all fabrics and steel wires received, and at all stages of the process i.e after dipping, afte r calendaring, and in the cured stages etc.B) Chemical laboratory

This laboratory carries out for all polymers, fillers and chemicals.C) Physical laborotory

All rubber compounds in process are tested in the laboratory on each stages i.e after mixing in the Banbury, after extrusion, and calendaring and after curing.TYRE TESTING

Sample of cured tyre are tested indoors on a test wheel. The wheel simulates the running conditions of a tyre , primarily used to detects

carcass strength and heat generation. Tyre are fitted on different vehicle to study the effect of different types of road, load and climate conditionsMARKETING DEPARTMENT

The traditional definition of marketing is the performance of business activities that direct the flow of good and service from producers to customers. Marketing concepts holds that the key to achieving its organizational goals consists of the company being more effective then competitor in creating, delivering and communicating consumer value to its chosen target markets.

The American Marketing Association offers the fol lowing definition Marketing is a process of planning and executing the conception and pricing promotion , and distribution of ides, goods services to create exchange that satisfy individual and organizational goal.

Theodore Leavitt of Harvard drew a perspective contract between the selling and marketing concepts: Setting focus on the need of the seller; marketing on the needs of the buyer. Selling is preoccupied with the sellers need to convert his product into cash marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating , delivery and finally consuming it.

FUNCTIONS OF MARKETING DEPARTMENT:

Formulation of effective advertising strategies for winning the market. Conducting Seminar / exhibition for the purpose of launching new products to the market and also make the people aware of their existing products. Conducting Retailers meet for the purpose of main ting cordial relationship between management and distributors, dealers, entailers. Conducting consumers survey for the purpose of collecting information from customers for the further product development and evaluation of existing position of product in the market. entering to the new market with different products. Formulation of sales strategies in order to achieve the target turnover. Formulation of effective marketing strategies according to the marketing condition, completion increase market share, launching of new products Orientation is given to dealer and distributors to make aware them about the quality of products. Product development is based on the feed back from customers and retailers.

Apollo tyres Ltd has a full fledged marketing set up all over the country, with head quarters situated is Delhi. The department deals with the 2000

exclusive dealers. 96 sales officers and around 1000 multiband dealers across the country. A team of dynamic and dedicated professionals under the shortage leadership of a company adds to its value. Besides leadership of a company adds to its value. Besides having dominance in the replacements market, the company makes effort to have an increased presence in the original equipment market.

It is the Ist Tyre Company to have the concept of exclusive showroom for trucks tyres called 'Apollo tyres World'. Apollo holds dealers meet regularly. It has introduced the Tyre super value program to collect feed back fro m the customers and dealers. Apollo is a regular participant in automobile exhibitions. The company shares are currently listed as dealers Mumbai, Ahmadabad, Calcutta, Ludhiana and Coli stock exchanges as well as at Natural stock exchange o