avtec report

AVTEC

“A Study on documentations in various department”

at

AVTEC Ltd , Pithampur(11 April 2011 – 3 June 2011)

Submitted for the partial fulfillment of MBA in International business

Submitted By

Roll No 72

PGDIE – 40

Under the guidance of

Date of Submission: _ _ _ _ _ _ _

School of Economics-DAVV

Dr. K. Maddulety Faculty GuideNITIE, Mumbai

Company GuideAVTEC Ltd, Pithampur

ACKNOWLEDGMENT

I take this opportunity to extend my sincere thanks to AVTEC Ltd for offering a

unique platform to earn exposure and garner knowledge in the field of operation.

I wish to extend my sincere and heartfelt gratitude to my guide Mr.Shirish Makode.,

Divisional Manager, SCM AVTEC Limited,Pithampur, who guided, supported and

encouraged me during the entire tenure of the training.

I also thank Dr.K. Maddulety my faculty guide who constantly mentored me

throughout this project. Special thanks to Mr. Tripti Sharma, Manager-HRM for

valuable advice and guidance throughout the course of my training.

I also wish to thank all people in the staff of SCM, Production group and HRM of

AVTEC Limited, Pithampur for their constant support and help in accomplishing the

objectives of the training.

Roll No 72, PGDIE-40

NITIE, Mumbai

School of Economics-DAVV2

TABLE OF CONTENTSCertificates..................................................................................................................2

Acknowledgement.......................................................................................................4

1.About AVTEC Ltd...........................................................................................8

1.2. Company Profile:

1.2. Units of AVTEC

1.3. Power Unit Plant

1.4. Export

1.5. Application Engineering and Validation of Power trains

1.6. Power Products Division

1.6.1. Transmissions

1.6.2. Power train Components and Aggregates:

1.7. Export

1.8. Product

2. Training Overview

2.1. Literature Survey:

2.2. Objective of the Project:

2.3. Methodology:

3. Documents Identification/ Designing for the process

3.1. Mapping and Analysis

3.1.1. Identified Processes and Documents

3.1.2. Various types of Document:

3.1.3. SCMG Overall Process

3.1.4. Capacity Mapping Process Chart

3.1.5. Supplier Selection Process

3.1.6. Purchase Order Release Process


3.1.7. Tooling Cost Payment Process

3.1.8. Proto/ Part Development Process

3.1.9. Supplier Development Process

3.1.10. Reporting Process Chart

3.1.11. Cost Saving Process

3.1.12. Import Process

4. Limitations of the Training

4.1. Interaction with Process Owner/Participants

4.2. Getting data

5. Academic Contributions

6. Recommendation and Conclusion


1. About AVTEC limited

AVTEC Limited PUP Division ( Power Unit Plant ) is a flagship enterprise of

the Hindustan Motors Group managed by Mr. C. K. Birla from the distinguished

& well known industrial houses of Birlas and ACTIS, UK.

We are involved in the manufacture & supply of reliable Engines and

Transmissions. We are also manufacturer - exporters of a wide variety of

Automotive components including Cylinder Heads, Cylinder Blocks,

Connecting Rods, Crank Shafts, Cam Shafts, Hubs & Synchro sleeves, Round

Gears, Shafts, Transmission Case & Cover, etc for a major part of the past two

decades.

We are an ISO 9001 ------ QS 9000 ------ ISO 14001 certified company and

recently we have been certified with TS 16949 certification. Currently we are in

the process of implementing phase II of TPM under the supervision of the

JIPM, Japan.

We being the largest manufacturer of Power Trains/Transmissions/Auto

components in India, are confident of delivering value addition to your

organization. We believe that there exists ample opportunity for imports of the

items we manufacture and are confident of fulfilling your product requirements

to your complete satisfaction.

We share the unique distinction of being a Tier 1 supplier with both FORD &

General Motors in India.

We have attached herewith a brief presentation on our Company & Product

profile. We shall be glad to send you details of any further information that may

be of interest to you.

In anticipation of your valued enquiries & RFQs, we remain


1.2. Company Profile:

Company Name: AVTEC Limited

Country/Territory: India

Address: Pithampur Sector 3, Sagore, District Dhar,

Pithampur, Madhya Pradesh, India

Products/Services We Offer: Auto Engines and Transmissions, Auto

Components, auto Gears, Shafts

Business Type: Manufacturer

Industry Focus: Engine Parts & Mounts , Steering &

Transmission Parts , Automobile , Auto

Accessories ,

Geographic Markets: Worldwide

No. of Employees: 501 - 1000 People

Annual Sales Range (USD): US$50 Million - US$100 Million

Certificates: ISO 9001, QS 9000, ISO 14001, ISO:TS 16949

Year Established: 1987


1.2. Units of AVTEC:

The Power Unit Plant (PUP), located in Pithampur, near Indore (MP),

manufactures engines, transmissions and their components for automobiles

The Power Products Division (PPD), Located in Hosur, near Bangalore,

manufactures automatic transmissions and their components for off-highway heavy-

duty vehicles like dumpers, loaders, dozers and markets the complete range of

transmission for the on-highway segment from Allison range.

The unit at Chennai (part of PPD) commenced operation in Nov 2006 to focus on

meeting requirements of transmission, components for exports


1.3. Power Unit Plant

1.3.1.Engines:

Diesel Engines – naturally aspirated, turbo charged, meeting BS III

specifications – 2.0 Ltr

Petrol Engines - MPFI, BS III - 1.3 Ltr., 1.4 Ltr., 1.6 Ltr., 1.8 Ltr

1.8 Ltr. Dual Fuel Engines (Petrol / CNG), meeting BS III specifications

1.3.2.Transmissions:

5 speed transaxle and longitudinal manual transmissions (16 Kg-m and

18 Kg-m).

1.3.3.Automotive Components:

Critical engine Components like Cyl Block, Crank Shaft, Cyl Head,

Connecting Rod, and Cam

Gears, Shafts and Synchro Pack for transmissions

1.4. Export

1.8 Ltr CNG engine for 30 KVA Genset application

Engine Timing Gears, Extension Shafts, Sliding Clutch, Front Output Shafts

1.5. Application Engineering and Validation of Power trains

Our strength is our capacity to understand the varied needs of our

customers and the ability to apply new technologies to meet their

specifications


1.6. Power Products Division

1.6.1. Transmissions:

CLBT series of Hauling transmissions for Earth Moving applications

TT series of cycling transmissions for Earth Moving and Material

Handling applications

CT-100 for material handling segment.

1.6.2. Powertrain Components and Aggregates:

Planetary Carriers, Carrier assemblies, Housings, Pistons, Pumps,

Torque Converter parts

Gears, Shafts and aggregates for clutch packs

1.7. Export

CLBT 754 hauling transmission

Machined castings , Pistons for clutch packs, Pressure plates, Pumps,

Gears and Shafts


1.8. Product

AVTEC Turbo 2L DSL AVTEC Turbo-2L-DSL with IC AVTEC 1.8l SFI PTL AVTEC 2L DSL

AVTEC SFI 1.8 PTL Ford-Rocam-1.3-L Ford-Sigma-1.6-L-PTL GMI-2.5-DSL-Turbo


2. Training Overview

2.1. Literature Survey:

The process mapping basics were taken from the paper Process Mapping,

Clarifying understanding of key processes and providing a path to

significant improvement, A Kaufman Global White Paper. The whole format


of the template in which the mapping was done, was built with the cycle

concept of process mapping. As the paper explained many process mappings

like VSM, Brown Paper Mapping, Flow Chart etc. Finally Flow Chart was

taken as this gives the simplest representation of the process. The concepts of

mapping were also taken from the book Work System Design, ILO. The

book as have a separate chapter for Process Mapping, and it also tells

about a number of tools.

The Book Introduction to Materials Management was used to have a better

understanding of Strategic Sourcing department. Chapter 7 Purchasing helped

a lot in Supplier Selection Process, And also to understand role of Purchasing

in Supply Chain. The book Supply Chain Management was also used to get

a feel of all the verticals of supply chain. Especially Part VI Managing Cross

Functional Drivers in A Supply Chain made the processes of both the

departments very easy to understand. Chapters like Sourcing decision in

Supply Chain were used to improve the processes.

2.2. Objective of the Project:

Objective of the training is to understand the ….

Corporate culture

Organization structures

Various types of process in an organization

Documentations interaction between various functional and non functional

department


2.3. Methodology:

As – Is/ To – Be Analysis

5W1H Approach: Who, Where, Why, What, When and How

Study of various departments

Study of Documentation flow system

3. Documents Identification/ Designing for the process

The next critical step taken was to identify the documents for each activity. And

also if any activity needed a document, then it was created. Under this

category in total two documents were created


3.1. Mapping and Analysis

3.1.1. Identified Processes and Documents

Mainly 10 Processes were indentified in various the departments.

Sr. No. Process Name1 SCMG Overall Process2 Capacity Mapping Process3 Supplier Selection

4Purchase Order Release Process

5 Tooling Cost Payment Process

6Proto/Part Development Process

7 Supplier Development Process8 Cost Saving Process9 VSME Process

10 Import Process**

Identified Main Processes of SCMG

3.1.2. Various types of Document:

Document Name Document Name Document Name

APQP Template Special Process Audit Forging Open Issues Status Report

Indent Special Process Audit Tube MillSupplier Pre qualification Form

RFQ (National and International)

Special Process Audit Module Heavy Stamping

Supplier Feasibility Statement

MoU with SupplierCasting Supplier Facility Information Supplier Risk Assessment


PPAP Template A3 Template SCMG Tracking Sheet

PSW Template Welding System AssessmentGap Analysis (Actual vs. Plan )

Scanned PO Heat Treat System Assessment Drawing Release NoteRFTF Plating System Assessment Airway BillSPFS Template Coating System Assessment Bill of Lading SSA Process Series Review Template Invoice CopySupplier Development Action Plan

Request for Financial Analysis Form Packing List

Cost Estimation Template Special Process Audit Casting TR 6 ChallanSCMG Functional Gates Duns Form Bill of Entry ChecklistTooling Code Creation Format List of Test and Lab Equipment Steel Mill Audit TemplateSupplier Quick Audit Template List of Production Equipment

Stamping Tooling Module Template

Risk Mitigation TemplateSpecial Process Audit Module Machining SSA Workbook

8 D FormatSpecial Process Audit Aluminium Casting

3.1.3. SCMG Overall Process

This process Chart tells about the overall process of SCMG. This gives a quick

overview of the sub processes. All the sub processes are having hyper linking and

hence by just clicking on the box the next process can be referred. The processes

shown in red square got some changes. SCMG Functional Gates were for

monitoring purpose.

3.1.4. Capacity Mapping Process Chart


This chart is basically meant for showing that how the Sourcing department was

doing the capacity mapping activity.

3.1.5. Supplier Selection Process

This process explains the process of Supplier selection. This process chart consist

both the possibilities that is selecting Supplier from the existing Supplier Database as

well as for New Supplier Selection. Here also the needed document Supplier Quick

Audit Template was created to facilitate the Supplier Selection Process. And also for

Supplier Selection Supplier Selection Matrix was created.

3.1.6. Purchase Order Release Process

This process is continued after Supplier Selection. Here it includes all the activities

RFQ sending etc. Here the change of not sending PO also in scanned form was

done.

3.1.7. Tooling Cost Payment Process

The process talks about the cost payment related to Tooling Cost to Supplier. Here

major changes were done. The document template Tooling Code Creation Template

was designed. And also earlier all the payment was done by Finance Plant, and

balance payment by Finance HO. But now changes were done, and the payment is

done in reveres way.

3.1.8. Proto/ Part Development Process

In this process the proto/ part development is considered. This is done after the

technical and commercial agreements are done with Supplier.

3.1.9. Supplier Development Process


This is a continuous process. Here the change was done that to identify Top Worst

Suppliers. So that the development can be done to that supplier, where it’s needed

most.

3.1.10. Reporting Process Chart

This Chart talks about the Reporting activities of SCMG. It reports various functional

departments

3.1.11. Cost Saving Process

This shows the ways by which SCMG is trying to do Cost Saving.

3.1.12. Import Process

The chart talks about the Import Processes in AVTEC. This process was extended

part of the project and the flow chart is not finalized by company .

4. Limitations of the Training

4.1. Interaction with Process Owner/Participants


The one of the major hurdle in the project was interaction with Process Owner/

Participants. Because all the mangers are having packed schedule and even the

presence of them is not ensured.

4.2. Getting data

It was again a major problem. As there was not a single repository for the data, so it

was a tough job to collect relevant data. It resulted in wastage of time as well.

5. Academic Contributions


In Academic Contribution subject like Supply Chain Management, Material

Management, Work System Design and Software Engineering really helped a lot.

SCM helped in understanding the whole flow of the organization. Material

Management helped in explaining the Import Process, for Eg. Custom Clearance.

Work System Design concepts like Process Mapping etc. also built the basic

understanding.

And if the contribution of project is seen to the academics, it would be a significant

one. The document created like Supplier Selection Matrix can significantly

contribute to Supplier Selection Process, which is always one of the crucial processes

of any Organization. And also the Process Mapping template in itself is again a very

new kind of template.

6. Recommendation and Conclusion


As the company has already started following the Documented Flow Charts. And they

are also using the two out of three document created. The only one left is Supplier

Selection Matrix. The use of this matrix will really ease the work of Supplier

Selection. So the company should try this template. The main thing would be hat

whether the Employees are following the Standardized Processes. Because even

after standardization and new document template creation if people don’t follow it,

then the whole project will go in vain. So constant follow-up is must. In a nut shell the

working experience at AVTEC Ltd. was an enriching experience. Hope this will really

help me in my future work.

References


1. Introduction to Materials Management, J. R. Tony Arnold, Stephen N.

Champan, Lloyd M. Clive, Pearson Publication

2. Supply Chain Mangement, Strategy, Planning and Operation, Sunil Chopra,

Peter Meindl

3. Benefits of “As-Is” Process Analysis and the Power of Business Rules –

Western Consulting Group – A pdf document

4. Supplier Selection Checklist, Version 1.0, February 2002

5. Process Mapping, Clarifying understanding of key processes and providing a

path to significant improvement, A Kaufman Global White Paper, Andy Herdan

and Sean Wright

6. An exploration of supplier selection practices across the supply chain, Science

Direct Journal, Thomas Y. Choi and Janet L. Hartley

7. Supplier logistics performance measurement: Indications from a study in the

automotive industry, J. Schmitz

8. Success factors in supplier development, Daniel R. Krause

9. Supplier development: customers as a catalyst of process change, Janet L. Hartley,

Thomas Y. Cho

10. http://www.argi.com.my/whatispage/processStandard.htm

11. http://www.businessperform.com/articles/process-iprovement/

standardize_your_process.html

12. http://it.toolbox.com/blogs/bpo-journal/process-standardization-the-new-business-

imperative-5946

13. http://www.halfcostproducts.com/Standardization.htm


avtec report

Business

process ownerparticipants

power train components

supplier development

supplier selection process

units of avtec

power unit plant pup

hrm of avtec limited

avtec limitedcountryterritory