Appolo Tyre
Appolo Tyre
Appolo Tyre
AN ORGANISATIONAL S TUDY IN
Submitted by
Register No:
CONTENTS
INTRODUCTION
PROFILES:
INDUSTRY PROFILE
COMPANY PROFILE
PRODUCT PROFILE
DEPARTMENTS:
HUMAN RESOURCE
PRODUCTION:
PURCHASE
STORES
MANUFACTURING PROCESS
QUALITY ASSURANCE
PPC
ENGINEERING
INDUSTRIAL ENGINEERING
FINANCE
SYSTEMS
SWOT ANALYSIS
FINDINGS SUGGESTIONS &
CONCLUSIONS
BIBLIOGRAPHY
INTRODUCTION
METHODOLOGY
The study was conducted using the method of interview and observation and
also made use of the primary and secondary data
Primary data
Primary data is collected through observation or through direct communication
with reoidentsin one form or another or through personal interviews.
The formal and informal interviews with Managers and Department
heads, employee
Direct observation
Secondary data
Secondary data are those which have been collected by someone else and
which have already been passed through statistical process. The secondary data
were collected from.
Company records
Journals
Annual report.
Website
INDUSTRY PROFILE
History of tyres
The most important application of
selling
the companies ,which are yet to start production are classify under
the head fourth generation tyres.
Global positioning
Year
Rank
2004
17
2005
16
2006
15
Domestic Rank
9
Companies
Apollo Tyres
JK Tyres
MRF
CEAT
Segment
Truck
1
2
3
4
% share
24
22
17
14
6
17
10
COMPANY PROFILE
Tyres
Ltd
to
Ruby
Rubber
works
to
start
tyre
factory
at
companies of Raunaq
11
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.
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 Kanwar took
over the companys affairs . Company began to earn profit and
accumulated losses of 26 crores could be wiped out with short
spam 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 take over this plant was a sick unit. After the
take over Apollo spent a good amount in modernizing the plant and
now it is profit earning unit.
12
VISION
A
GOALS
Creating Social Responsibility.
Learning & Development.
Family Focus.
Hygienic Factors.
13
DREAM
To become a nine thousand crore company by the year
2010.
BOARD OF DIRECTORS
Mr. Onkar S Kanwar
Joint
Mr K Jacob Thomas
Director
Mr Jose Cyriac
Mr. M R B Punja
Director
Mr Nimesh N Kampani
Mr Raaja Kanwar
Mr Robert Steinmentz
Mr S Narayan
Mr Shardul S Shroff
Mr Sunam Sarkar
Mr T Balakrishnan
Mr U S Oberoi
managing director
Company Secretary
Mr P N Wahal
Auditors
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1972
1974
The company was taken over by Dr. Raunaq singh and his
1975
1976
1977
1982
1991
1995
2000
2003
associates.
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.
2004
2005
2006
16
MANUFACTURING CENTRES
Corporate office-Gurgaon
Other plants in India:- Baroda
- Pune
- Perambra
- Kalamassery
International plants:Zimbabwe
Bulawayo
South Africa
Ladysmith,
- Durban
17
18
TURNOVER IN CRORES
1710.14
2025.62
2314.31
2656.81
3002.12
2006-2007
4733.00
RANK OF ATL
17
16
PRODUCT PROFILE
19
1. TRUCK.
Overload Technology
Loadstar Super.
Kaizen 50L.
XT7.
XT7 Gold.
XT7 Haulug.
Amar Delux.
Amar.
Commando.
Kaizen 36L
20
Kaizen 77R
XT9
XT9 Gold
Amar Gold
Kaizen XTD
Champion
Champion Gold
Champion DXL
Amar AT Rib
Kaizen 27L
Loadstar Super.
Milestar
Amar Delux
XT9
XT9 Gold(lug)
Duramile (radial)
Champion
Regular Mileage
Amazer XL
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Acelere
Hawks
Amar
Amazer XL
Quantum
Amar
Amazer XL
Storm
Hawks
Armour
Panther
Gripper Maha Trooper
4. FARM
Cultivation
Krishak Super
Haulage
Multipurpose
Sarpanch
Power Haul
Farm King (Radial)
DEPARTMENTS
23
create
friendly.
To
build
professional
culture
which
is
warm
forthcoming
and
STRUCTURE OF HR DEPARTMENT
25
1. Recruitment
Recruitment is done through advertisement and a good opportunity
is given to the child of worker. This increases family loyalty towards the
company. They are called for the interview and the chief executive take
final decision.
26
Selection
1. Management Staff.
Technical- B.Tech, Graduate Engineer Trainee.
Non Technical- CA/ICWA/MSW/MBA/MA (PM); Executive
Trainee
After training, they are absorbed as officer.
Criteria include:
a) Consistency in academic performance
b) Group Discussion
c) Personal interview
2. Employee children skill development scheme
a) One year training in production
b) Dependant of employees
c) Minimum qualification- 10th standard
d) Physical fitness [height-165 cm, weight-50 kg]
Induction Plan
Workers
2. Training
The organization provides training for both managers and workers.
Training programme for managers consist of both internal and external
programme. The workers have internal programmes. The training system
includes:
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a) Need identification
b) Validation of needs
c) Annual training plan
d) Selection and preparation
e) Post training programme
f) Training impact assessment
Areas covered include:
1. For management staff:
a. Conceptual
b. Functional
c. Cross-functional
d. Behaviour
2. For workers:
e. Systems
f. Technical aspects
g. Work culture
h. Specialized training for trade union
Training programmes
Training on communication and interpersonal skill- programmes
for
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Safety
and
fire
training
conducted
for
blue
collared
workmen. .
With a view to develop multi skill among engineering
trainees ,they are given exposure to engineering, production &
technical fields.
3. INDUSTRIAL RELATIONS
Union management relation:Mutual trust + Understanding = Teamwork..
A good industrial relation exists in the organization. The
management and the employees jointly find the solutions for the
problems. There exists a well relation between employer and employees.
There are four main trade unions recognized by the company are:
i.
ii.
iii.
iv.
4. WELFARE DEPARTMENT
The organization provides good welfare services to its employer. The
company runs a subsidized canteen on contract basis. Rest rooms with
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locker and washing facility, arts and sports club, well maintained library
are other facilities provided.
A well transportation facility is given to all the employees from
different destinations for which they have to pay a very less amount. All
employees drawing a salary below Rs.6000 are covered under group
accidental policy and mediclaim policy.
Taking the health aspects of employees those who in the night shift
get 200ml of milk packets for every night shift worked. It is given to
retain their lost energy in the night shifts as it is motivation to the
employees to come for night shifts.
Apart from its soaps is distributed for the cleanliness of employees.
Each worker gets soap fully off cost and those who work in the
production units 3 in number per month.
Management staff
1. Group hospitalization scheme
2. Group personal accident policy
3. 2 wheeler scheme-40% borne of the company
4. car scheme- Asst.manager
and
company
5. Super annuation-Asst. manager and above
6. Employee self development scheme.
Workers
1. Group personal accident policy
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2. Mediclaim
3. Housing loan interest subsidy-50%
4. 2 wheeler loan interest subsidy -70%
5. Financial assistance co -operative society
6. Periodically medical checkup
5. TIME OFFICE
This is concerned with registering the time in and out of the
workers. Other activities related to payment of wages, incentives, leaves
etc. different registers are kept for different shifts for the effective
functioning. Apart from it, a punching system is maintained. Each
employee has to punch his badge in the electronic punching system while
arriving for duty. The same is repeated while leaving the factory
premises.
Working hours:
A
Safety
31
The organization follows all the provision under the Factories Act
1948.The plant is well equipped with
directions are given for the same. Safety
safety machines
and
to
each
employee, which
procedures in order
prescribes
certain
rules
and
ABC of Safety
Always
Be
Careful
Security
32
day
,onam / Christmas
celebrations and
plant visit by
important officials.
Absenteeism Management
Absenteeism among workmen has been a cause for concern for the
company; production has suffered heavily in this account recently. It has
therefore been decided to fight against the absenteeism contains among
the regular workman and production apprentices through attendance
monitoring mechanism.
Control Measures
(a)Attendance, Discipline & Development Programme
Introduction of ADD programme effective in ATL at April 2006.
-An effort to improve the attendance of chronic absentees.
-To maintain consistent production
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(b) System
i.
Daily follow up
ii.
iii.
iv.
v.
vi.
i.
ii.
iii.
iv.
v.
Individual counseling
Leave planner
ii.
iii.
iv.
Mentoring
-Handholding extended to budding
youngsters by senior
managers.
Performance Appraisal
i.
ii.
iii.
iv.
v.
vi.
35
Salary Payment
All supervising personnel are required to open an SB Account with
the South Indian Bank, Perambra and intimate the account number to the
accounting department who in turn will remit the salary in case of non
supervisory personnel, cash payment is done in the following days;
(a) Staff and service staff
No of employees
Management staff
- 270
Permanent staff
-1819
Workmen trainees
- 248
Contract workmen
- 453
Total
-2790
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PRODUCTION DEPARTMENT
The
1. PURCHASE DEPARTMENT
The main function of purchase department is to provide
right material at right time in right place at right quantity.
This department is concerned with the purchase of both
indigenous and imported materials. It covers procurement of indigenous
Engineering spares, general engineering and miscellaneous items othern
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 latest communication facilities and computers.
The main items of purchase are
1. Engineering spares
2. Consumables
3. Furnace oil
4. Diesel
5. Chemicals
6. Lubricants
7. Some raw materials
37
The purchase
Stock items are purchased for regular use. They are having material
codes. They are purchased after considering the reordering level,
reorder quantity, lead time etc. For non stock items their is no
regular
2. STORES DEPARTMENT
38
=raw materials
P-Process
O-Output
39
necessary
spare
parts, components
required
for
smooth
ENGINEERING MATERIALS
At present, total number of item codes in Engineering store
are 38500 approximately. Out of this 23500 items are spares and 15000
items are consumables.
1. Consumables (General stores items)
Consumables (General stores items) are standard
engineering items (bearing, belt, etc).
2.
Spares
Spares are part of equipments..
41
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
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3. Manufacturing process
PRODUCTION PROCESS
Banbury mixer
Mills
Dip unit
Calendar
DualExtruder
Bias cutter
Thread skiver
Band building
Bead building
unit
Thread
Tyre building
Tyre curing
Post cure inflation
Final inspection
Warehouse
DIVISION A
BANBURY
43
All polymers are mixed with filler, process oil and other
chemicals to give different grades of rubber compounds in the Banbury.
The mixed batch is then dropped on a batch off mill for further mixing to
form the rubber compound and then in to a sheet form. The rubber in
sheet form is then passed through a conveyor and stacked on skids. Each
type of rubber compound is specifically compounded for tyre
performance.
CORD DIPPING UNIT
Rayon and nylon cord requires treatment in order to make them
suitable for adhesion of rubber compounds. These cord fabric are passed
through a liquid rubber solution called 'latex' and is heated under tension
through special ovens
CALENDER
All fabric is coated with specific compounds in the calendar. Cord
fabric is coated on both sides with rubber layer, where as square woven
fabrics are normally frictioned and then they are coated on one side or
both sides. Coating consists of applying a rubber layer to top and bottom
surface of the cords..
EXTRUDERS
Extruders are distinguished by the diameter of their screws and are a
single or dual type.
DIVISION B
BEAD WINDING SECTION
44
DIVISION C
TYRE CURING
45
This process consists of moulding the tyre on specially designed rim and
inflating the tyre to the required pressure while it is still hot for a period
of time in order to help final process of vulcanization and maintain a
proper shape.
TYRE INSPECTION
All cured tyres are then physically inspected for visual defects and
excess rubber flashes are removed. The tyre is then checked in the
balancing machine. The tyre after inspection and classification are taken
to ware house
Major losses during production
Break down of machineries
Loss of time for setting up of machine
Loss due to the difference of machine speed
Loss due to stoppage of production
Loss due to mistakes and correction of mistakes
4. QUALITY ASSURANCE
46
Lab
production
only after lab approval. For that samples of raw materials (Rubber,
Carbon , Chemicals ,Fabric etc ) are given to lab .In lab these raw
material samples are tested .If the test result are within the required
specifications above material is released for production. If the result
is not ok, material is rejected.
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Processflow
Input
Marketing
process
(Internal
supplier)
Resources
-Skilled
manpower
-materials & tool
inventory
Activity
Production
Planning &
Control
Related documents
-Skilled matrix
-Procedures
-Specifications
-Plant objectives
Output
Finished product
Despatch process
(Internal
customer)
Key Activities
-Projection of
production
-Machine
scheduling
-Physical
verification
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production costs.
The main objective of production planning control is there
fore to ensure optimum utilization of those resources as well as
the capital looked up in work in progress inventory.
The major activities of PPC could be enumerated as follows:1. Scheduling of machines
2. To ensure that machineries are bought out , required components
are ordered at the right time to fit in with the plan of work
schedules for the shop floor.
3. To ensure that the proper man is doing the proper work in
specified time consuming specified material at specified quality.
.
49
6. ENGINEERING DEPARTMENT
This department consists of Electrical, Mechanical and utility
division.
UTILITY DIVISION
There are 4 chillers and the medium used is FREON. The capacity
of each chiller 115TR. The temperature of the
Sections which required chilled water are: TCU, Dual extruder, Banbury,
Mill etc.
COMPRESSOR HOUSE
51
FUNCTIONS
54
FINANCE DEPARTMENT
The corporate office situated at Gurgaon does most of the accounting and
taxation jobs of ATL. At Perambra plant there is a separate accounting
and finance department. This department deals with salary, wages and
costing. Excise duty of the raw materials also comes under this
department.
Sales from operations during the financial year ended March 31,
2007 amounted to an all time high of Rs. 4,733 crore as against Rs.3,
002.12 crore during the previous year, recording a growth.
Mar 06
3,002.12
236.89
78.17
38.34
Mar 05
2,656.81
189.96
67.63
38.34
Mar 04
2,314.31
180.87
70.42
38.34
Mar 03
2,025.62
236.50
120.02
36.32
Mar 02
1,710.14
146.72
36.81
36.32
55
120.02
2003-04
2314.31
2003-04
70.42
2004-05
2656.8
2004-05
67.63
2005-06
3002.12
2005-06
78.17
2006-07
4733.00
2006-07
107.00
Foreign holdings
25.67
29
4.07
32.43
8.84
56
SYSTEMS DEPARTMENT
MAINTENANCE FUNCTION
a user ID and a
password.
57
SWOT Analysis
STRENGTHS
58
OPPORTUNITIES
59
60
Findings
&
suggestions
61
Findings
A fair wage system exists in ATL.
Workers health and safety are given prime importance
A good coordination exists between different departments
Labour turnover is very low.
Trade unions play a vital role as bargaining agents. The
management is sometimes forced to accept unreasonable demands
made by the unions.
The products of the company are known for its high quality
standards.
Suggestions
A bit more promotional activities could enhance building brand
image
Maintain a healthy relationship with trade unions.
Workers should be given chances to express their ideas through
suggestion systems and quality circles.
62
Conclusion
Apollo tyres is the 7 th fastest growing tyre
company in the world. A fair wage system prevails in
company provides better working conditions
ATL. The
BIBLIOGRAPHY
Bibliography
Apollo tyres Company manuals
Apollo tyres Departmental manuals
Apollo tyres Annual report
Website:www.apollotyres.com
www.geojit.com
63