Industrial Integration Report

on KFIL, Hospet &VRL Logistics, Hubli ( 28th October to 29th October 2010) Date of Submission : 15-01-2011

Submitted To Prof E. Anand

Acknowledgement
Any attempt at any level cannot be satisfactorily completed without the support of learned people. We would like to express our immense gratitude to Dr. Gopal Iyengar for providing us the golden opportunity of industry visits. We are also thankful to Prof. E.Anand for his constant support and motivation that has encouraged us to come up with this report. We take this opportunity to thank all the faculty of KIAMS for their invaluable guidance throughout our stay in KIAMS.

We are also grateful to Anirudh Phadnavis (Finance GM- VRL Logistics) and Mr. Pavan (Junior HR Officer- KFIL) who have rendered their whole hearted co-operation at all times for the successful completion of this visit.

Contents

1. Objectives of the Visit 2. Manufacturing Company- KFIL 2.1 2.2 2.3 Company Profile Mission, Vision, Objectives & Values. Company Data Captured in Balance Scorecard & Business

Excellence Model. 3. Service Company- VRL Logistics 3.1. 3.2. Company Profile Mission, Vision, Objectives & Values.

3.3. Company Data Captured in Balance Scorecard & Business Excellence Model.
4.

Suggestions for future visits.

Objectives of the visit

To have an interface with the industry. To get acquainted with the practical application of the concepts of Balanced Score Card and the Business Excellence Model. To get a better understanding of the Business Excellence Model and the Balanced Score Card. To interact with the various functional heads of the respective manufacturing and service companies and get to know the linkage of theoretical concepts and their application in the corporate world.

An experience aimed at expanding our view about business and making us identify the dimensions that require attention on our part. To make us understand the roles and responsibilities of different departments in an organisation and the differentiation and integration of the same. The visit also helped us identify the sector and department which each one of us might be more interested in joining in the future.

Manufacturing Company- Kirloskar Ferrous Industries Limited. Profile of the Company Kirloskar Ferrous Industries Limited (KFIL), which was incorporated on 10th September 1991 to manufacture pig iron and ferrous castings. Business areas of the company encompass Grey Iron castings, S.G Iron castings, Steel Investment castings and Pig Iron. The product range includes Grey Iron castings: 1 kg - 500 kg single piece weight, S.G Iron castings: 1 Kg -70 Kg single piece weight, Investment castings: 1 gram-1 Kg single piece weight and Pig Iron: Foundry Grade, S.G. Iron Grade & Basic Grade. For the producing the all above, the company having two manufacturing units in Bevinahalli Village (Near Hospet) and Solapur. KFIL had entered into a technical collaboration with M/s. Tata Kort Engineering Services Ltd in March of the year 1992 for its business purpose. The Company's commercial production of Pig Iron from Mini Blast Furnace I and 3.5 MW Power Plant-1, using Blast Furnace Gas were started in the year 1994 and in the identical year, KFIL had issued Initial Public Offer. The commercial production of Grey Iron castings came to line in the year of 1995. In the same year

of 1995, KFIL had started to produce Mini Blast Furnace II. The company had obtained an ISO 9002 certification. The Company's 3.5 MW Power Plant-2 was installed in the year of 1997. In 1997, Turbo Generator II was taken on lease with a capacity for the generation of 3.5 MW of power using Blast Furnace Gas. TG - II was taken on lease. After a year in 1998, the company started supply of TG power to foundry. During the period of 1999-2000, KFIL had entered into a long term contract for pig iron with an institutional buyer and also secured a sales tax exemption for further two years. During the year 2000, the company entered into financial restructuring with IDBI and with other institutions namely IFCI, IIBI, GIC, OIC, LIC and NIA. In 2001, KFIL had received an ISO 9002 certification. After a year, in 2002, an ISO 14000 certification was handed over to the company. KFIL had entered into one time settlement with Financial Institutions for the repayment of the high cost Loans in the year 2003. An ISO / TS 16949:2002 certification was added to the company's quality list in the year of 2005. KFIL had purchased the MBF II and TG I, II in the year 2006 for its various purpose, which were earlier taken on lease. During the year 2007, the company had acquired Solapur foundry from Kirloskar Oil Engines Ltd and also Hot Blast Stoves project for Mini Blast Furnace -1 was commissioned. Year of Establishment Total Area Percentage Area covered No. of Employees Products - 1992 - 289 Acres - 35 % - 820 - Pig Iron (Basic, Foundry & S.G.Grade) - Grey Iron Castings Turnover for 2007-08 Mission To become a cost effective pig iron manufacturer &to enhance production capacityfrom 240,000 tons to 425,000 tons by 2010 To enhance casting manufacturing capacityfrom 84,000tonsto 130,000 tons by 2010. To move towards machining and assembly To capitalize on export potential in casting business - Rs. 640 Crores

 Vision

To move up the value chain by adding steel manufacturing To become energy self sufficient through co-generation of power To continue to work towards Cleaner Environment

To be a world class product leader through the state-of-the art manufacturing technologies & processes

Objectives To increase market share in all markets that are present. To Increase the share in auto components (due to investments made in capacity expansion), Medium Engines for Stationary and Agri (Tractor) Use, and Large Engines for Stationary (Power Generation) . The major thrust is to Drive Down Cost to retain competitive edge. To achieve reduction in coke consumption by 80 kg/thm To achieve productivity increase by 15% & coke consumption reduction by 4% for foundry grade & 32% productivity increase & 11% coke consumption decrease for basic grade Values To achieve the mission and vision, KFIL would pursue following values: Customer Orientation. Vendor Development (Critical link in the business) Development of Human Resource (Trust, Positive attitude, Integrity, Team-Work, Respect for individual, concern for quality, cost, 5S, Safety, a personal habit, Being proactive, Solving problems, Networking, Working for WIN-WIN agreements, continuous improvement and result oriented) Process & Product excellence. Responsible corporate neighbor To completely utilize Blast Furnace Gas available from the process

Company Data captured in Business Excellence Model and Balance Scorecard Model Leadership Excellent leaders develop and facilitate the achievement of the mission and vision. They develop organizational values and systems required for sustainable success and implement these via their actions and behaviors. During periods of change they retain a constancy of purpose. Where required, such leaders are able to change the direction of the organization and inspire other to follow. They are responsible for: 1. Leaders develop the mission, vision, values and ethics and are role models of a culture of excellence. 2. Leaders are personally involved in ensure organisations management system is develop , implemented and continuously improved. 3. Leaders interact with customers, partners and representatives of society. 4. Leaders reinforce a culture of excellence with organisations people. 5. Leaders identify and champion organisational change The company is under the efficient management headed by Chairman- Atul C Kirloskar Director- Sanjay C Kirloskar Managing Director- R V Gumaste Board of DirectorsPeople Excellent organisations manage, develop and release the full potential of their people at an individual, team based and organisational level. They promote fairness and equality and involve and empower their people. They care for, communicate , reward and recognize in a way A R Jamenis C V Tikekar S N Inamdar S G Chitnis A N Alawani

that motivates staff and builds commitment to using their skills and knowledge for the benefit of the organization. People resources are planned, managed and improved. Peoples knowledge and competencies are identified, developed and sustained. People are involved and empowered. People and the organization have a dialogue. People are rewarded, recognized and cared for.

1. Employees In accordance with our mission of 'DESTINED TO SCALE NEW HEIGHTS' we strongly believe that, a satisfied employee is an unadvertised asset of a company. Hence, we at, Kirloskar Ferrous Industries Ltd., are committed to bind the organization with a common purpose, a common mission and common values so as to continuously upgrade quality of work life of our employees through: Creation of good working environment and shared accountability for quality, safety and knowledge. Adoption of improved work practices to foster the intellectual capital. Develop people with high degree of enterpreneurability and leadership qualities. Develop emotional togetherness for strong ownership. Defining the role & responsibilities of employees to generate empowerment and right leadership. Encouraging teamwork, participation & involvement to effectively deal with negative residues. Development of personnel to create knowledge tank and a learning base to defeat competition. Recognize performers through rewards and recognition.

2. Customers

Mahindra & Mahindra , Kirloskar Oil Engines Ltd, Escorts , TAFE, SIMPSON , Tata Motors Ltd, EICHER , CARRARO, Toyota Kirloskar Auto Parts KNORR BREMSE etc. AUTOMOBILE Mahindra & Mahindra Ltd. Tata Motors Ltd. Toyota Kirloskar Auto Parts Eicher Motors Ltd. TRACTOR Mahindra & Mahindra Ltd. Escorts Ltd. Carraro India Pvt. Ltd. TAFE ENGINE Kirloskar Oil Engines Ltd. Simpson & Co. Ltd 3. Attitude towards the Society 1. Social Welfare As a philosophy, we have an objective concern for the welfare of the society to restrain individual or corporate behavior from ultimately destructive activities, no matter how immediately profitable and to lead in the direction of positive contributions to the human settlement. We as an economic unit within the society, irrespective of profit / loss, consider our duty to repay the debt towards the society. Our social contribution goals:

Provision of quality health care / drinking water. Provision of employment opportunities Environment protection and maximum efforts to prevent environmental hazards Improving community life of people & Building infrastructure Affordable quality education Safety of employees, customers, minorities, women and community Changing social needs, values and demands Contribution to national exchequer.

2. Environment Management KFIL has been awarded ISO - 14001 Certification by IRQS on 27th of August 2002 for its commendable achievements and improvements in Environmental Management Systems. Our commitment to protect and upgrade the environment is embodied in our Environmental Policy wherein cost effective methods for waste management, prevention of pollution and resource conservation are main elements. Policy & Strategy Excellent organisations implement their mission and vision by developing a stakeholder focused strategy that takes account of the market and sector in which it operates. Policies, plans, objectives and processes are developed and deployed to deliver the strategy. 1. Policy and strategy are based on the future needs and expectation of stakeholders. 2. Policy and strategy are based on information from performance measurement, research, learning and external activities. 3. Policy and strategy are developed, reviewed and updated. 4. Policy and strategy are communicated and deployed through a framework of key processes.

1. Finance Policy

To achieve the companys mission, the finance team endeavors for realisation of values of the company by meeting the requirement of: 2. HR Policy In accordance with hrm mission of destined to scale new heights, kfil strongly believe that a satisfied employee is an unadvertised asset of a company. Hence kfil, are committed to bind the organization with a common mission and common values so as to continuously upgrade quality of work life of employee. Creation of good working environment and shared accountability for quality, safety and knowledge. Adoption of improved work practices to foster the intellectual capital. Develop people with high degree of entrepreneur ability and leadership qualities. Develop emotional togetherness for strong ownership. Defining the role & responsibilities of employees to generate empowerment and right leadership. Encouraging teamwork, participation & involvement to effectively deal with negative residues. 3. Marketing policy: In the direction of achieving the companys mission, the marketing team - pip endeavors for maximization of sales and realization for the companys product while meeting the customers requirement to their all round satisfaction. Strategies Financing capex & support business growth through innovative finance tools. Employees. The government exchequer. Banks & financial institutions. Customers & suppliers. Promoters & stakeholders.

Maintaining quality leadership On time delivery Strong dealership network Customer orientation Customer driven Performance tracking of competitors

4. Quality assurance department The company is committed to achieve total customer satisfaction through adoption of state of the art manufacturing technologies and process with continuous improvements. The company is also committed to improve quality of work life of its employees through improved work practices. Partnership & Resources Excellent organisations plan and manage external partnerships, suppliers and internal resources in order to support policy and strategy and effective operation of process. During planning and whilst managing partnership and resources they balance the current and future needs of the organisation, the community and environment. External partnership are managed. Building, equipment and materials are managed. Technology is managed. Information and knowledge are managed

1. Major Business Partners Pig Iron: o Electrosteel Castings o Texmo Industries o Rajkot Engg. Association o Laxmi Machine Works o Menon Pistons Ltd o Punjab Tractors Ltd o Sriram Pistons & Rings Ltd

o Kalyani Steels Ltd Foundry: o Automobile Mahindra & MahindrA Telco Maruti Udyog Ltd o Tractor Escorts Carraro Tafe Punjab Tractors Ltd o Engine Kirloskar Oil Engines Simpsonf Swaraj Engine 2. Resources Materials & Suppliers 1.Grade sand 2.Iron ore Mangalore minerals V.S. Laad & sons National minerals development Rajalaxmi minerals

3.Low grade iron ore lumps 4.Low grade sponge iron 5.Merallurgical coke 6.Lime Stone 7.Dolomite 8.Scrap bundle Processes -

Guru Rajendra minerals Rajapur minerals Bellary mining corporation Hospet Ispat Ltd, Adhi global pvt Ltd, IMR metallurgical Sharada cements Vaadhiraj minerals Vaadhiraj minerals Mysore enterprises

Excellent organisations design, manage and improve process in order to fully satisfy , and generate increasing and other stakeholders. Processes are improved, as needed, using innovation in order to fully satisfy and generate increasing value for customers and other stakeholders. Products and services are designed and developed based on customer needs and expectations. Products and services are produced, delivered and serviced. Customer relationships are managed and enhanced. 1. Production Department An innovative technology from KTS (KORF Technological Sidervrgica Ltd.) Brazil has helped KFIL to design and develop a MBF has come a long way and has enabled many entrepreneurs to produce more than 500 MT of Pig Iron world over. KFIL is among the first in India to adopt this state of art technology with computer controls to produce consistent quality of Pig iron. KFIL also boasts of a record of projects completion of electing the first MBF with in 18 months and second MBF within 9 months. It has got uniform crystalline pearl tie structure it is slag free and made from the riches grade of iron ore and imported

coke. It is supplied to KFIL valued customer of the engineering industry who cater to automotive, tractor, textile, pumps, and spun pipes segments as well as the steel industry. 2. Purchase Process

P
Source Vendor

Existing Vendor ? Yes Float Enquiry

No

Quotation

Approve Vendor Create Vendor

Negotiation

Finalize Vendor

Vendor Master

Existing Vendor ? Yes

No Amend Purchase Order Purchase Order

O
Yes

Import ?

No

PO

Supplier

3. Finance Department

One of the most important departments in any organization is its finance department. If this department is not well operated, the whole organization activities will be ruined. KFIL`s finance department functions are as follow: Functions: o Preparation of master budget. o Maintenance of accounting records. o Preparation of final accounts. o Payment and cash management. o Funding Activity o Internal audit. 4. Human Resource Department In short HR is a resource, which is of immeasurable value for an organization. The HR department is entrusted with vital function of keeping employees happy and thus assisting in enhancing the productivity of the company. Any organization with manpower as its chief capital is a treasure move of talent. The HRM department at KFIL considers the employees the best foremost and major resources of the company. Upliftment of employee growth is at center of organization philosophy of growth which aims at providing a career in which the individual can make the maximum contribution of employees common ender and at the same time better their living standard. The primary functions of this department at KFIL are as below: o Recruitment o Selection o Interview o Placement o Wage and salary administration o Training and development o Performance appraisal o Promotion and transfers o Human resource planning.

o Administration and welfare activities consisting of canteen and medical. o Submission of periodicals and reports to statutory authorities. o Ensure quality assurance system. o Formulating and Implementing leave records of employees. o Processing medical benefit applications. o Processing of wage and salary of all employees. o Implementing disciplinary action on employee. 5. Marketing Department The marketing department is mainly focusing on the activities of Marketing products, Pricing, Promotion and Distribution of products. These activities collectively called as 4 Ps in Marketing. Products: The Company has following products in its Product Line. They are: 1. Basic Grade Pig Iron. 2. Foundry Grade Pig Iron. 3. Spheroid Grade Pig Iron. Pricing: The name Kirloskar itself is the mark of quality for the customer. The company has left the opinion of transporting Pig Iron to the Buyers site to the Buyer. So one can buy the Pig Iron at the Companys Site or can order. The company has come across different Prices terminologies. They are: o List Price o Discount o Allowance o Payment Periods o Credit Terms Promotion: The company has appointed number of dealers throughout India for its marketing purpose. Each dealer will get Rs. 100 PMT, as commission for the pit iron is sells.

Credit notes are given to these dealers for their commission. Pig iron is also sold on credit as one of the promotion tools to attract customers. Credit time depends on areas (less credit period is for North Zone) and order they give. Distribution: The company has got distribution network spread allover India in form of dealership and also through companys employees, the company has divided its market into 7 Zones: Zone A Zone B Zone C Zone D Zone E Zone F Zone G Karnataka Andhra Pradesh Maharashtra Gujarat Rajasthan Delhi Tamil Nadu Belgaum, Shimoga, Bangalore Hyderabad, Vijaywada Kolhapur, Pune, Mumbai, Nagpur, Solhapur Ahmedabad, Rajkot, Surat Jaipur Delhi, Faridabad, Zodhinoor, Agra Chennai, Coimbatore, Mudurai

6. Quality Assurance System The company is committed to achieve total customer satisfaction through adoption of state of the art manufacturing technologies and process with continuous improvements. The company is also committed to improve quality of work life of its employees through improved work practices.

BALANCED SCORE CARD

F I N A N C I A L Revenue growth To be the leading manufacturer of pig iron castings. Reduce the cost of casting process and making efficient operations.

Be a dominant player in domestic market in all segments

Grow international business

C U S T O M E R

End customer

Enhance customer satisfaction through reliable, cost effective, safe and good value product and service

Enhance value for channel partner

Enhance product offering

Increase accessibility for customer

Value creation citizenship

P R O C E S S

corporate

Design & Development

Manufacturing and Vendor management

Sales & Marketing

Excel in corporate governance social responsibility

Culture & Climate for action improvement

L E A R N I N G Align Employee to company strategy

Develop strategic competencies

continuous
Excel in the journey to excellence

Enhance employee satisfaction

Create high performance culture amongst employees

Strategic competencies
Identify and acquire information technology in line with company strategy

Service Company- VRL Logistics Company Profile We are engaged in the business of providing goods and passenger transportation services and are currently listed in the Limca Book of Records as the largest single owner of commercial vehicles in the private sector in India. We offer services for the transportation of goods across India using a range of road transportation solutions to our customers, including less than truck load (LTL), full truck load (FTL) and express cargo services. We are also one of the private bus operators in the State of Karnataka, Maharashtra and Goa and with a fleet of over 256 owned passenger buses, we carried, approximately 1.56 million passengers in Fiscal 2010 and 1.03 million passengers in the six-month period ended September 30, 2010. As of September 30, 2010, our fleet of vehicles for the goods and passenger transportation business consisted of 2,829 owned vehicles. We also operate in three other business segments, which are: courier services, wind power generation and the air charter business. In 1992, we commenced courier services for time sensitive documents and packages. In September 2006, we commenced our wind power business and have since been supplying all the power generated by us to Hubli Electricity Supply Company Limited. We commenced our air charter business in 2008 for providing services o individuals and corporate passengers. Our goods transportation network spans across 20 States and 6 Union Territories and covers 534 cities throughout India. We operate on a Hub-and-Spoke operating model, which gives us the flexibility to accommodate a broad range of parcel sizes for both regional and national customers while providing customers multiple destinations for delivery of their goods. This provides us the ability to offer customers a compelling value proposition and gives us a competitive advantage in sourcing freight. VRL Logistics was founded in 1976 by Mr. Vijay Sankeshwar in Gadag, a small town in North Karnataka with a single truck and a vision that was way ahead of its time. VRL soon expanded its service to Bangalore, Hubli and Belgaum. From this humble beginning VRL has grown into a nationally renowned logistics and transport company which is currently the largest fleet owner in India with a fleet of 2829 Vehicles (Including 256 tourist buses & 2573 Goods Transport Vehicles) as of 30th Sept 2010. VRL finds mentioned in the limca book of record as a Single largest fleet owner of commercial vehicles in India in the private sector.

Over the years VRL has pioneered in providing a safe and reliable delivery network in the field of parcel service. It has spread its operations to Courier Service, Express Cargo & Air Chartering to meet the growing demand of the burgeoning customer base. 3PL & Warehousing solutions offered by VRL are tailor-made and cater to unique needs of various customers of the industry. With the largest network in India, the VRL parcel service is indispensable for large number of corporate houses. This network spans the length and breadth of the country and is supported by large number of transhipment hubs. VRL operates through a network of 859 Branch and franchisees to cater its valuable customers. Mission
o To provide the highest quality service to our customers by continuously increasing cost efficiency and maintaining delivery deadlines. o To encourage our employees / workforce to strive for quality & excellence in everything they do. o To promote team work and create a work environment that takes care of talent and brings out the best in our employees.

Vission o To become the premier company that cuts across various segments and emerges as the torchbearer of each segment that the Group ventures into. Corporate Social Responsibility o Our corporate integrity is a critical asset and we are committed to upholding it in everything we do. We share our expectations and opinions and strive to maintain a workplace built on mutual values, trust and goodwill & we continue to embed these ethical standards in our business environment. Noteworthy is the Vignyan Yog Shivir that we organized that was conducted by Param Pujya Ramdevji Maharaj which was attended by more than 10,000 people across the state

Objectives Objectives of the company To increase the market share of VRL.

To be responsive to the consumers & channel members, so as to be competitive in

the market. To streamline the marketing opportunities To ensure competent & willing work force of organisation. To maintain good relationship between the employees & the employers. To maintain good industrial relation. To assist employees in attaining their personal goals so as the organisational goal Enhance the individual contribution to the organization To help individual growth To select right position for right person & number of employees

The Objectives Of Luggage Section Delivering the goods within scheduled period by increasing the speed of distribution. Providing services all over the country. Security and reliability in service. Providing value added services to the customers. Customer care

Finance Objectives 1. Maintenance of liquid assets 2. Profit maximization a) Increase in revenue b) Controlling costs c) Minimizing risks. 3. Wealth maximization Objectives of the Organization To gain all around views of management operations To understand the work culture To integrate practical experiment with theoretical concept To assimilate and understand the function of each department in the organization

To develop necessary interpersonal and managerial skills

Company Data captured in Business Excellence Model and Balance Score Card Model Leadership Excellent leaders develop and facilitate the achievement of the mission and vision. They develop organizational values and systems required for sustainable success and implement these via their actions and behaviors. During periods of change they retain a constancy of purpose. Where required, such leaders are able to change the direction of the organization and inspire other to follow. They are responsible for: 1. Leaders develop the mission, vision, values and ethics and are role models of a culture of excellence. 2. Leaders are personally involved in ensure organizations management system is develop, implemented and continuously improved. 3. Leaders interact with customers, partners and representatives of society. 4. Leaders reinforce a culture of excellence with organizations people. 5. Leaders identify and champion organizational change. Business Ethics We very strongly believe that rules are not meant to be broken but rules are meant to be followed. This belief of ours strengthens our commitment to offer services that put our clients and us in a win-win situation. We believe, it is better to be Fair than to be Good. Service Policy To offer, high quality Air-charter service, to each and every customer, during every single flight operations, be it pre-flight, in-flight or post-flight. We are committed to offer quality service, as expected by our customers and match upto their expectations, time after time, every time.

Safety and Comfortable Standards To maintain our aircraft, pilots and human resources in absolute ready condition, to offer safe and comfortable flight experience to our customers, through timely maintenance of the aircraft, keeping the aircraft in Airworthy condition and training the pilots and executives, as per civil aviation requirements Administration: Chairman and Managing DirectorManaging DirectorIndependent Director Mr. Vijay Sankeshwar Mr. Anand Sankeshwar Mr. Sudhir Ghate Mr. C. Karunakara Shetty Mr. J. S. Korlahalli Mr. Prabhakar Kore People 1. Employees People are the main resources of all productive efforts in every organization. It is assumed and accepted that human resources are the main component of an organization and the success & failure of the organization depends on how effectively they are managed. Acquiring, terminating, developing and properly using the human resources in the organization is essential for accomplishing the organizational activities. Currently the total number of permanent employees in vijayananda travels Particularly in Bangalore division is 270. As vijayananda travels has to work for the whole day, shift system is maintained. The employees work in three shifts. The shifts and their timings are 1. Shift from 6.00 a.m. to 2.00 p.m. 2. Shift from 2.00 p.m. to 10.00p.m 3. Shift from10.00p.m to 6.00 am

ORGANISATION CHART OF VRL LOGISTICS

G.M. HRM & GA

Manager of Environment

Manager of Safety

Sr. Manager of GA

Manager of HR

Manager of PMU

Dy.Manager -Admini

Engineer of Environment

Sr. Officer of Catering

Civil Engineer Sr. Officer HR & IR Officer of HR & IR Assist Officer

AssistantOfficer AssistantEngineer

Assistant Officer

2. Attitude towards Society Quality Conscious The efficiency of our fleet of vehicles hinges on our all inclusive state-of-theart workshop cum service complex at Hubli (Karnataka). Every vehicle of our fleet passes through this master service facility so that they are at peak levels of performance, leading to better cost efficiencies and time management. Centralised Operations:

At the core of the groups transport business is its 43 acre transport cum warehouse complex in Varur, Hubli. This unique facility has all the essential back up services under one roof. This complex contains the Head office Building, Transhipment Godown, Workshop, Canteen, Drivers Rest Room, own Diesel Bunk, Praking area etc. Non-Conventional Energy The journey over the last three decades was challenging and we have become more innovative. Our Wind Energy project of 42.5 M.W. has been successfully commissioned. CDM board has granted registration to this project under UNFCCC. VRL is now eligible to trade in Carbon Credit Policy & Strategy Business Strategy In order to capitalize on volume growth as well as key ongoing trends in the Indian freight and passenger transportation industry, the following are the key components of our operating and growth strategy: Increase freight density in the existing system Expansion of passenger transportation business in India Selecting profitable routes for our passenger transportation business Focus on the attractive market for LTL services Continue to focus on operating efficiency by establishing high-capacity transhipment hub. Focus on serving a diverse, underserved customer landscape Maintain our commitment to time bound service, safety and quality.

Policies A nationally established transportation company Proven track record in the transportation business Large and established size and scale of operations Young fleet of vehicles in the passenger transportation business Low dependence on hiring third-party vehicles in the goods transportation business Strong in-house capabilities Differentiated operating model Experienced and motivated management team Ability to recruit and retain highly experienced and professional drivers Partnerships & Resources From the tarmac to the skies... VRL has set off on a new journey. VRL has acquired a brand new, Premier jet 1A aircraft, manufactured by Hawker Beechcraft Inc, USA. It offers luxurious comfort and the freedom to fly at a whim. This coupled with the legendary VRL lineage, this venture will certainly touch the skies. Processes The company operates its travel based upon following two segments. They are Fixed Bus Operation Under fixed bus operations the company makes its operations without any alterations i.e., buses are operate as per pre determined schedules at fixed routes, but are Fixed bus operations. Casual bus operations.

changed only when there is no demand for buses in these routes or uncertain things that may occur as usual course of business. Casual Bus Operations Under casual bus operations the company gives buses for rent to satisfying customers needs like marriage functions, trips & other occasions Ticket Formats Maintained By Vijay-anand Travels: The company is maintaining three formats of tickets. They are Companys copy. Customers copy. Accounts copy. Product Profile The Product Profile of Vijayananda Travels is classified into following groups. Based Upon The Seating Capacity: Buses Types Capacity Based Upon Varieties Of Coach: Departmentation at Vijayanand Travels: Departmentation is the process of grouping the various activities into separate units of department. A department is the district section of the business establishment concern with a particular group business activity of like nature. In business units

department is necessary for sub dividing the activities and easy reference. Departmentation in vijayanand travels is done on the basis of functions i.e. grouping of the activities into major functional departments. Company is having different departments in each branches depending on function of those branches. There are five departments in Bangalore branch. These departments are 1. Human resource department 2. MIS department 3. Marketing department

4. Finance department 5. Information technology department. Human Resource Department The principal component of an organisation is its human resources or its people at work. Human resources have been defined from the view point of the organization it is the sum of total of all the knowledge, skills, inherent& creative abilities, talents aptitudes & the knowledge acquired of its employees. Therefore human resource is having at most importance in an organisation as most of the problems in organizational settings are more human and social in nature rather than being physical, technical, or economical. Thus human resources are the most valuable & unique assets of an organization. The successful mgt. of organisation human resources is an exciting dynamic &challenging task especially at a time when the world has become a global village & economics are in a state of flux. The scarcity of talented resources & the growing expectations of modern day worker have further increased the complexity of human resource function. Even though specific human resource functions/activities are the

responsibility of the human resources department. The actual management of human resources is responsibility of all the managers in an organisation. It is therefore necessary for all manager to understand & give due importance to the different human resources policies and activities in organisation. Human resource department deals with human relations & legal activities. It is the people who make organizationsuccess or allow is to be HRM management in the life and wealth of organisation.

Manpower planning at VijayAnand Travels The HOD of HR is required to fill the prescribed manpower requirement form and submit it with the detailed job profile for the particular post. The HOD shall forward the same for the approval of the managing director before handling the further processing. Manpower resources for VijayAnand Travels The major sources for manpower, for vijayanand travels includes 1. Extract from data bank. 2. Release of advertisements in leading newspapers. 3. Campus selection. 4. Employee referrals. Selection Process at Vijayanand Travels: 1. Fresher: Fresher are required to take up a written test before actual interview. The interviews the short listed candidates. 2. Candidates With Experience: The members in experienced candidates panel is short listed and then called for final interview. 3. Senior Level Members: In the case of engineers and for seniors position in the company the Interview panel shall consist of MD/GM along with other members. Weighted average of the scores is taken and the candidate is selected. 4. Recruitment: Recruitment has a direct appointment at VRL. It is done on the basis of CMDS discrepancies. Performance Appraisal: Interview panel

Performance appraisal is done periodically by promoting and transferring employees on the basis of their experiences. Attendance: Attendance is recorded in registers and maintained to check the regularity of employees. Trade Union: There is no trade union existing at Vijayanand Travels. Compensation: On the basis of CMDS (chairman-cum-managing director) discrepancies the compensations are determined. PF, ESI: 12.33% of employees salaries are paid towards PF and gratuity. ESI is in cluded as medical reimbursement facility. Fringe Benefits: There are no extra fringe benefits paid to their employees at vijayanand travels. Training Facilities At Vijayanand Travels. In rapidly changing society, employee training and development is not only an activity but it is desired. Training helps the peoples to improve their skills and knowledge to cope with the requirements. Vijayanand travels believe in continuous orientation of members to create atmosphere that is for the fulfillment of specified objectives. On The Job Training Method:

It is on the job training provided by the supervisors at Vijayanand travels. There is no extra programme conducted to impart skills, but the employees are assigned to task as soon as they appointed to their positions. Leave: Leave is calculated as sick leave and casual leave. Leaves are not encashed but they are forwarded to next year working days. MIS Department Vijayanand travels have well equipped information system, which serves the information needs of the company. Local area network (LAN) connects the computers. The operating system used is windows 2000, and various applications used are, Customer Relationship Management(CRM) Enterprise Resource Planning(ERP) MS-OFFICE SAP The skill required to operate the applications varies depending upon the functions for which application is used. This department provides required information for all the departments as and when demands. The efficiency of whole organisation is solely depends on, how well its information resources are maintained. Organisation Structure Of MIS Department:
GM (MIS)

ASSISTANT

CLERK

EMPLOYEES

Marketing Department As markets change, so does marketing. Marketing is no longer a company department charged with a limited number of tasks. managing advertising sending out direct mail, finding sales leads providing customer service. marketing must does a company wide understand. It must drive the company vision mission and strategic planning. Marketing is about deciding who the company wants as its customers, which leads to satisfy what products & services to offer what price to set, what communications to send a receive what channels of distribution to use & what partnership to develop. Marketing deals with the whole process of entering markets, establishing profitable Position and building loyal customer relationship. This can happen only if all departmental work together, engineering designs the right product finance furnishes the required funds purchasing buys quality material, production makes quality products on time & accounting measures the profitability of different customers, product & areas. Marketing is a comprehensive and it includes all resources, and a set of activities necessary to direct and facilitate the flow of goods & services, from producer to consumer in the process of distribution. Marketing encompasses all activities of exchange made by producer & middlemen in relation to trade for the purpose of satisfying customer demand. Presently the Vijayanand travels are vested with the responsibility of marketing its products under the corporate brand name of VRL. Objectives To increase the market share of VRL.

To be responsive to the consumers & channel members, so as to be competitive in the market To streamline the marketing opportunities. Agents Strength: This VIJAYANANDA TRAVELS is having more than 1700 agents in and around the Bangalore. The agents run business based on commission basis. The companys standard commission is 10% on the total amount of the Passenger Tickets and 20% on the total amount of languages booked by the agents. The agent must have a fixed deposit or bank guarantee for Rs 50,000/-, and the business done by him much suit the requirements of Vijayananda travels to serve its customers. Marketing department of vijayanand travels are classified as 2 different sections like, 1. Luggage section 2. Travels section. Luggage Section: The marketing manager executes this department. Under his control 10 booking clerks are working. They are working towards meeting the customer satisfaction needs, by providing speedy and safe delivery of cargos like documents, packages, samples, Exhibition material etc. The company transports goods -and services, either through paid basis or to pay basis. (Paid basis refers to the process where in customer has to pay the transportation charges in advance before delivering the goods. To-pay basis refers to the process where in the customer pays transportation charges after goods delivered.) Structure Of Charges: The vijayanand travels will charges different prices for its services depending upon the size of the goods transformed. They will charge Rs 20, if the documents are below the minimum standards weights prescribed by the company. These charges will vary if documents exceed minimum size.

For parcel boxes they will charge Rs. 2 per kg. This rate is fixed even though the size of order is small or big. The Objectives Of Luggage Section: Delivering distribution. Providing services all over the country. Security and reliability in service. Providing value added services to the customers. Customer care. Travels Section: Structure of travel section in Vijayanand Travels resemble as follows.
CUSTOMER CARE

the

goods

within

scheduled

period

by

increasing

the

speed

of

ACCOUNT SECTION

CONTRACTORY BOOKING

PARCEL BOOKING

TICKET BOOKING

TRAVELS

The general manager of travels heads this department. And this general manager having the following responsibilities. They are as follows. 1. He has to inform the head office regarding all the activities pertaining to travels department in Bangalore division. 2. He is responsible to solve the consumer grievances and conflicts immediately as and when they occurred.

3. Before taking any decision regarding company matters he has to consult head office. If any from his pocket. The Vijayanand Travels is developing effective use of information technology. Right from the pick up point, the precise status of the consignment needs are monitoring at every stage of its distribution channel. Structure Of Charges: Rs 1800/-per day is charged if the total distance is traveled is within 100 kms. If the travelled distance is more than 100kms, then charge will be calculated as per km. Promotional Activities: The budget for the promotional activities by vijayanand travels is set on the basis of objective & task method. Such budget is more advantageous as it well planned on the basis of objectives to be achieved, and the tasks involved there in. Distribution Channel: The distribution channel of vijayanand travels is very simple. It includes only the agents, who bridge the gap between vijayanand travels & its consumers. These are selected loss occurred because of his negligence, he has to bear those losses

on the basis of their location in the city or town where company operating its business . The agent must have a fixed deposit or bank guarantee for Rs 50000/-& the business done by him much suit the requirements of Vijayanand travels to serve the ultimate customers. Information Technology Department: The information technology division of VRL is located in Varur. This division oversees the information technology of the VRL, including the computerizing of their branches, hubs and officers. The computerization of the hubs has facilitated mailing of delivery reports and quick flow of information between different offices, delivery offices, and the transphirent hubs of the

company this enables effective coordination and tracking of the consignment. The information technology department prepares software which are hardware related such office automation-related, courier tracking and accounting software.

Global positioning system (GPS)-VRL developed their own GPS based tracking device which VRL installed in selected devices. In addition to keep track of the movement of the vehicles , the GPS system also tracks the time spent by the vehicles when not in motion, the location it has stopped in addition to traveling pre assigned route to be followed by the vehicle. This discourages their drivers from not complying with the instructions given to them regarding the route and time sheets that they are required to comply with. Most of the software requirements are met in-house and in the event that any activity is outsourced by the company. The source code is retained by the company to ensure that it can be used at the later stage as per the requirements of the company. Important Developments Of Information Technology Division Are: 1 .Vehicle Maintenance Tracker- This application schedules the maintenance of the entire fleet and generates reminders helps in avoiding the premature failure and the excees consumption of parts.

2. Vehicle Traffic Application:-This application controls the entire movement of the vehicles and keep tracks the drivers performance in terms of the fuel average and distance traveled. This also tracks the advance amount paid to the drivers and the diesel vouchers issued for an route fuelling. This application online and ensure access to this data from any part of the world. 3. Consignment Delivery Application:-This application is used in delivery branches to raise online cash receipts and track the consignment. This application also maintaince a record of the stock in our companys godown and it is used to answer queries from the customer regarding the arrival of consignments. The records of tracks and delivery particulars are updated every 24 hours. 4. Hub Applications: This application receives the consignment from other hubs and booking branches and dispatch them to the final destination and some time reroute to other hubs. 5. Online Bus Ticket Booking System:-This application hosted online on their web server and agents and passengers log on to this application for booking passenger tickets. 6. Remote access to networked computers:-: This application enables their company to take remote access of any computer system linked to the networks. This facility is used for monitoring the operations of their employees and also for conducting training sessions for the employees in remote locations Finance Department Finance is to business is as blood is to human Finance is defined as fund where as business is defined as an activity controlled with planning raising controlling & administering of fund used in the business. In business undertaking or an educational institution or in a hospital or in an art society or elsewhere management of funds is the primary concern of financial management. The modern thinking in financial management today is that financial manager does not perform the role of score keeper of financial data & information & arranging funds whenever directed to do so. Rather they occupy key position in top mgt. And play a

dynamic role in solving complex management accords a far greater importance to management decision making and policy. Due to liberalization privatization & globalization the subject of financial management has been changing at a rapid & pace & it has acquired a critical significance now a days. The basic requirements for an organisation for its survival & existence are fund or finance. Financial management is concerned with the managerial decisions that results in acquisition & financing long term & short term funds. It deals with the acquisition of specific assets the selection of specific liability as well as size & growth of enterprises. Finance department is concerned with the essential finance activity for organisation to carry out activities in effective way. This helps the organisation to achieve soundness in working & dealing with others is required from the beginning of organisation & further for successive stages. OBJECTIVES: A. Maintenance of liquid assets. B. Profit maximization 1. Increase in revenue 2. Controlling costs 3. Minimizing risks. C. Wealth maximization The functions of finance department in Vijayanand Travels is been grouped Under following heads such as, 1. Maintaining of cost accounts. 2. Planning of funds.

3. Recording of the transactions. 4. Preparing of financial statement. 5. Evaluation of financial performance. 6. Arranging for internal as well as external audit. The general manager of finance heads this department. Under his control there are 12 employees who handled entire financial transactions in Bangalore division. They will maintain records to pertaining to Bangalore division only. Preparation of final statements of whole company is done by the head office, which is situated in Hubli.

BALANCED SCORE CARD

F I N A N C I A L

Revenue growth

Increase the market share of VRL

Wealth maximization

Maintenance of liquid assets

Profit maximization

To be responsive to the consumers & channel members

C U S T O M E R

End customer

Providing value added services to the customers.

Delivering the goods within scheduled period

Security and reliability in service

Value creation citizenship

corporate

P R O C E S S

Ensure competent & willing work force of organisation

maintain good industrial relation

streamline the marketing opportunities

Participate in Corporate Social Responsibility

Culture & Climate for action

L E A R N I N G

improvement Assist Employee

to attain company goals

Develop strategic competencies

continuous
Excel in the journey to excellence

Enhance employee satisfaction

Enhance the individual contribution to the organization

Strategic competencies
Identify and acquire information technology in line with company strategy

The balanced score card is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. We are designing the Balance score card for VRL Logistics. So we have taken their Main objective at the top. Then we are seeing the financial perceptive to achieve that goal. In the Financial perceptive we wrote the financial objectives of the VRL which are profit & wealth maximization. So we mentioned those in the BSC. In this we are having 1 more that is Corporate Social responsibility. How they are planning and achieving this. Then we are looking into the Customer prospective which is more important to any organization. So we are mentioning here how the VRL treats the customer and how they are servicing the customer and how important the customer is for them. And what are measures they are taking for Satisfying the customer. After Customer prospective we are looking into the process following by the organization. Here VRL following that getting skilled labor and using the market opportunities and to maintain a good industrial relations to get good market share these are the things are having in their process to achieve the organization goal. And in the learning they are very much care about their employees and their needs. They are assisting them in achieving the personal goals through which they can able to achieve the

organization goals. And the strategic competencies of the organization are they are having software which was developed by the people who are working in their organization with a team of professionals. By using the technology they are able to maintain the every data and they are able to organize the many number of vehicles and many number processes.

Specific Linkages between Processes & Outcomes (in both models)

S.No. Processes 1. No changes in scheduling. For example service from Bombay to Bangalore scheduled for all days of the week will continue to run even if there are no parcels. 2. Interrupted Service i.e. service from Bombay to Bangalore would pick parcels from places on the way like Hubli etc. if available. 3. Regular servicing of the vehicles is done and employees undergo routine training. 4. Provides good motivation for the employees and proper condition of the vehicles are maintained. Large clients are contacted on a routine basis for feedback VRL does research on a routine basis and ascertains new potential routes and introduces new routes of service Outcomes Through this process VRL logistics is able to give continued service to the customers and there are no changes in the schedules of service. Through this VRL logistics is able to cover many places and hence able to provide the customers broader service. Through this VRL is able to avert many accidents and ensure safe delivery of the packages. This helps them ensure on time delivery of the packages which adds more satisfaction to the customers. This help them maintain good relationship with clients and therefore retain the customers Through this they are able to provide the customers much broader and increasing service every year.

5.

6.

Balance Scorecard Model S.No. Processes 1. Outcomes

2. 3.

It helps in designing expansion strategies Research process for accessing potential in terms of number of vehicles and new service service routes VRL houses driving training school and It helps help them reduce the number of provides routines training to the drivers accidents which happen VRL provides good motivation by Motivation in terms of money and rewarding regular on time deliveries and promotion motivates the employees to reduction of fuel usage strive more towards those goals.

Suggestions for future visits We as a group found this Industrial visit very useful for understanding the various processes existing in the organizational structure. The group had a great learning experience at KFIL and VRL Logistics. Our suggestions for the teams visiting the industries in future are: a) The group visiting the organization should have a clear understanding of what the organization is all about and what kind of services and solutions the organization provides to its customers. b) The group should be aware as to how the organization contributes to the customers, society, and people. One should have knowledge of all the relevant points the group wants to know about the organization and frame the questions based upon the same perspective thus eliminating any sort of inconvenience in the organization during the time of visit. c) Questions should be framed prior to the industrial visit and a copy of the same should be sent to the HR manager to address the same questions to the various department heads in the organization. d) The group should coordinate with the HR of the organization because they act as a linking bridge between the students and the various department heads. e) The group should make sure that in addition to business excellence and balanced score card they should also have a clear understanding of several operations management concepts and terms.