1.

INTRODUCTION
An organizational study refers to the complete understanding of an organization in all
dimensions.
Ashok Leyland is a well known automobile manufacturing company in India. Ashok
Leyland believe that its historical success and future prospects are directly related to
combination of strengths. The referred unit is a core limb of Ashok Leyland, the nations
pioneering automobile manufacturer.
The study includes the brief study of the core departments of Ashok Leyland, hennai.
!ifferent officials working in various departments have provided very important data in
this report. "very effort has been made to understand the functions and activities of
various departments as well as the manufacturing process.

1.1. OBJECTIVES OF THE STUDY
#
To familiarize with business organization.
$etting practical e%perience regarding the organizational function.
To understand the functions of &', (inance, )roduction and *arketing
departments.
To understand the culture in the organization and its effect on employees.
To get industrial e%posure and e%perience.

1.2. SOURCES OF DATA
+
The methodology used for the study is through the collection of primary and
secondary data.
Primary data
!irect observation
Live discussion with the managers and the staff members.
Sec!dary data
Annual 'eports
,usiness -ournals
"%isting 'ecords
.ebsite of the company.
2. PROFI"E OF THE STUDY
/
2.1. INDUSTRY PROFI"E#
AUTO$OBI"E INDUSTRY HISTORY#
In the year #012, a (rench engineer by the name of 3icolas -. ugnot invented the first
automobile to run on roads.
This automobile, in fact, was a self4powered, three wheeler, military tractor that made use of
steam engine. The range of the automobile, however, was very brief and at the most, it could
only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the
roads as the steam engines made them very heavy and large, and re5uired ample starting
time. 6liver "vans was the first to design a steam engine driven automobile in the 7.8.
The automobile industry finally came of age with &enry (ord in #2#9 for the bulk
production in cars. This lead to the development of the industry and it first begun in the
assembly lines of his car factory. The several methods adopted by (ord, made the new
invention ie: car, popular amongst the rich as well as masses.
According to the history of automobile industry 7.8, dominated the automobile markets
around the globe with no notable competitors. &owever, after the end of 8econd .orld .ar
in #29;, the automobile industry of other technologically advanced nations such as -apan
and certain "uropean nations gained momentum and within a very short period, beginning
in the early #2<=s, the 7.8 automobile industry was flooded with foreign automobile
companies, especially those of -apan and $ermany.
The current trends of the $lobal automobile industry reveal that in the developed countries
the automobile industry are stagnating as a result of the drooping car markets, whereas the
automobile industry in the developing nations, such as India and ,razil, have been
consistently registering higher growth rates every passing year for their flourishing
automobile markets.
INDIAN AUTO$OBI"E INDUSTRY#
9
India is one of the fastest growing automobile industries in the world. After #21=, the
automobile industry saw rapid growth and many automotive manufacturers started
production.
The automobile industry in India is the seventh largest in the world with and annual
production of over +.1 million units in +==2. In +==2, India emerged as Asias fourth largest
e%porter of automobiles, behind -apan, 8outh >orea and Thailand. ,y +=;=, the country is
e%pected to top the world in car volumes with appro%imately 1## million vehicles on the
nations roads.
A well developed transport network indicates a well developed economy. (or rapid
development a well4developed and well4knit transportation system is essential. As Indias
transport network is developing at a fast pace, Indian automobile industry is growing too.
Also, the automobile industry has strong backward and forward linkages and hence provides
employment to a large section of the population. Thus the role of automobile industry
cannot be overlooked in the Indian economy. Indian automobile industry includes
manufacture of trucks, buses, passenger cars, defence vehicles ,two wheelers etc.., The
industry can be broadly divided into the car manufacturing, two4wheeler manufacturing and
heavy vehicle manufacturing units.
The ma?or car manufacturers are &industan *otors, *aruti 7dyog, (iat India )vt. Ltd, (ord
India Ltd., $eneral *otors )vt. Ltd., &onda 8iel ars India Ltd., &yundai *otors India
Ltd., 8koda India )vt. Ltd., Toyota >irloskar *otor Ltd., to name a few.
The two wheeler manufacturing is dominated by companies like T@8, &onda *otorcycle A
8cooter India )vt. Ltd., &ero &onda, Bamaha, ,a?a? etc..,
The heavy motors like buses, trucks, defence vehicles, auto rickshaws and other multiutility
vehicles are manufactured by Tata4Telco, Ashok Leyland, "icher *otors, ,a?a?, *ahindra
and *ahindra etc..,
INDIAN AUTO$OBI"E $AR%ET#
;
*any foreign companies have been investing in the Indian automobile market in various
ways such as technology transfers, ?oint ventures, strategic alliances, e%ports and financial
collaborations. The auto market in india can boast of attractive finance schemes, increasing
purchase power and launch of latest products.
8ome vital statistics regarding the automobile market in India has been mentioned belowC
India ranks +
nd
in the global two4wheeler market
India is the 9
th
biggest commercial vehicle market in the world
India ranks ##
th
in the international passenger car market
India ranks ;
th
pertaining to the number of bus and truck sold in the world.
HEAVY VEHIC"ES $AR%ET#
&eavy vehicles market in India comprises of trucks, machines, ambulances and school
buses. The popular heavy vehicle brands in India are @olvo, "icher, Tata, Telco, Ashok
Leyland and 8wara? *azda.
(ollowing are the ma?or players in the Indian &eavy @ehicles *arketC
Tata *otors is the largest automobile manufacturing company in India that
manufactures a wide range of heavy vehicles adhering to world class standards. It is
the market leader in commercial vehicles in all the segments, be it heavy vehicles,
medium size vehicles, small vehicles, buses or defence vehicles. The heavy vehicles
manufactured by Tata *otors have highly developed braking structure, high ground
authorization, better direction competence and a muscular body. The advanced
engine imparted to these heavy vehicles makes them a class apart from the other
heavy vehicles running on the Indian roads and &ighways. Tata *otors leads this
segment with a market share of 1#D.
Ashok Leyland is an e%clusively heavy vehicle manufacturing company situated in
hennai and was initiated in the year #29<. It is one of Indias biggest producers of
heavy vehicles such as trucks, buses, military vehicles and also the second biggest
commercial vehicle firm in India heavy vehicle division with a market share of
around +0D. Ashok Leyland is also renowned for producing auto spare parts and
engines for marine and industrial submission.
1
"icher *otors was initiated in /
rd
8eptember, #21=. The first firm to manufacture
the first tractor in India. The indigenously manufactured tractor was introduced in the
Indian market straight from "ichers (aridabad factory. The history of the firm can
be traced back to #29<, when $oodearth ompany was established for vending and
repairs of imported tractors in the nation.
8wara? *azda, a tie up between *azda and 8wara? "nterprise, 8wara? *azda
represents advanced Indian e%pertise and manufacturing. The firm has 'esearch and
!evelopment improvement edge on international scale. The firm manufactures
various products such as ,us, Ambulance, Trucks etc.
The modern automobile market in India has been considering key issues in the process of
growthC
ustomer care, and not ?ust service
!omestic as well as multi4national investments
8earing through cut4throat competition
'oad safety
Anti4pollution norms
o4ordination with government to enable advancement
7sed vehicle trade
The future of Indian automobile market is bright as it looks forward to manufacturing and
implementing new innovations such as electric cars as provided by 'eva, alternate fuels like
3$ and L)$ and probably customized internet automobile orders.
0
2.2. CO$PANY PROFI"E#
Ashok Leyland has been a ma?or presence in Indias commercial vehicle industry since
#29<, the year it was born. The origin of Ashok Leyland can be traced to the urge for
self4reliance, felt by independent India. )andit -awaharlal 3ehru, IndiaEs first )rime
*inister persuaded *r. 'aghunandan 8aran, an industrialist, to enter automotive
manufacturing.
They are one of the Indias leading manufactures of commercial vehicles and special
vehicles, engines for industrial purpose, gen sets and marine re5uirement e5uipments. (or
over five decades, Ashok Leyland has been the technology leader in Indias commercial
vehicle industry, molding the countrys commercial vehicle profile by introducing
technologies and product ideas that have gone on to become industry norms.
Ashok Leyland at the time of its inception was known as Ashok *otors. It was
assembling Austin cars at the first plant, at "nnore, near hennai. In #2;=, the company
started assembly of Leyland commercial vehicles and soon the local manufacturing under
license from ,ritish Leyland, participation in the e5uity capital, in #2;9, the company
was re christened Ashok Leyland.
In #2<0 the overseas holding by L'LI& FLA3! '6@"' L"BLA3!
I3T"'3ATI63AL &6L!I3$8 LI*IT"!: was taken over by a ?oint venture between
the &indu?a group, the 3on 'esident Indian Transnational group and I@"6 (iat 8)A
part of the (iat group and "uropes leading truck manufacturing company. Ashok )
&indu?a is the chairman of the company. The &indu?a group also associated with "nnore
(oundries Limited, Automotive oaches and omponents Limited, and $ulf Ashley
*otors Limited.
<
The subsidiary holdings are Ashley &oldings Ltd., Ashley Investment Ltd., and Ashok
Leyland )ro?ect 8ervices. The chief competitors of the company areG
*ahindra
@olvo
Tata *otors
.ith a commanding strength of the about #+,=== employees the company is looking
forwards to enhance the scope of its action. It is aiming at e%panding its production
operation overseas to make it a more globally accessible company. It is looking to
ac5uire a small to medium sized commercial vehicle manufacturers in hina and other
developing nations, which have an established product line. An e%ample would be the
+==0 ac5uisition of the zech based Avias truck business rechristened Avia Ashok
Leyland *otors.
8ince its inception, Ashok Leyland has been a ma?or presence and these years have been
punctuated by a number of technological innovations which went to become industry
standard. This tradition of technological innovations and leadership was achieved through
years of vigorous in4house research and development.

(rom #< seater to <+ seater double4decker buses, from 0.; tonne to 92 tonne in haulage
vehicles, from numerous special application vehicles to diesel engines for industrial,
marine and genset applications, Ashok Leyland offers a wide range of products.
2
Ashok Leyland has seven manufacturing plants 4
"nnore )lant, hennai.
&osur )lants 7nit I, 7nit II and 7nit II A.
Alwar, 'a?asthan.
,handara, *aharashtra.
)antnagar, 7ttarakhand
"arly products of Ashok Leyland included the Leyland omet bus chassis sold to many
operators including &yderabad 'oad Transport, Ahmedabad *unicipality, Travancore
8tate Transport, ,ombay 8tate Transport and !elhi 'oad Transport Authority.
In the popular metro cities, four out of five state transport undertaking buses come from
Ashok Leyland. 8ome of them like the !ouble !ecker and @estibule buses are uni5ue
models from Ashok Leyland, tailor made high4density routes.
8tatistics reveal that the company is Indias largest e%porter of medium and heavy duty
trucks. It sells close to </,=== medium and heavy vehicles each year. The company has a
near 2<.;D market share in the *arine !iesel engine markets in India. At 1= million
passengers a day, Ashok Leyland buses carry more people than the entire Indian 'ailway
network.
T&e Fi'e A" Va()e* are#
#. International
+. 8peedy
/. @alue reator
9. Innovative
;. "thical
#=
+RO,TH $I"ESTONES OF ASHO% "EY"AND#
#211 H (ull air brakes introduced
#210 H !ouble !ecker buses introduced.
#21< H )ower steering offered.
#202 H *ulti4a%le trucks introduced.
#2<= H Integral bus with air suspension.
#22+ H 8elf4certification status for defence supplies.
#229 H I86 2==# ertification
#220 H Indias first 3$ powered bus.
#22< H I8 2=== ertification
#222 H 3$ Fompressed 3atural $as: introduced.
+=== H "uro4I, "nginesJvehicles introduced.
+==+ H I86 #9=== "nvironment *anagement 8ystem ertification.
+==+ H "%clusive *achine line H + for &ino cylinder.
+==/ H "4omet launched.
+==9 H ;=,=== mark vehicle produced.
+==14 I86JT8 #1292 orporate ertification.
ASSOCIATE CO$PANIES#
Automotive oaches A omponents Ltd FAL:
Lanka Ashok Leyland
&indu?a (oundries
I'IKA' H T@8
Ashok Leyland )ro?ect 8ervices Ltd
$ulf Ashley *otors Ltd
"nnore (oundries Ltd
##
FACI"ITIES#
The company has seven manufacturing locations in India
#: "nnore, Tamilnadu
+: &osurC 7nit #, Tamilnadu
/: &osurC 7nit +, Tamilnadu
9: &osurC 7nit +A, Tamilnadu
;: Alwar, 'a?asthan
1: ,handara, *aharashtra
0: )antnagar, 7ttarakhand
Ashok Leylands Technical entre, at @ellivoyalchavadi in the outskirts of
hennai, is a state4of4the4art product development facility, that apart from modern
test tracks and component test labs, also houses Indias one and only 8i% )oster
testing e5uipment.
The company has an "ngine 'esearch and !evelopment facility in &osur.
The new plant in the 3orth Indian state of 7ttarakhand at )atnanagar is set up at
an investment outlay of 's.#+== crores. This plant is e%pected to go on stream in
the year +=#= to cater mainly to the 3orth Indian market taking advantage of the
e%cise duty and other ta% concessions. The facilities have been so designed as to
accommodate further e%pansion in terms of capacity and future models. At full
capacity utilization, 0;=== vehicles will roll out of the )atnanagar plant.
The company has signed an agreement with 'as Al >haimah Investment
Authority F'A>IA: in 7A" for setting up a bus body building unit in the *iddle
east.
#+
C"IENTS -Nt e.&a)*ti'e/#
Indian Army.
78 Army.
&onduras Armed (orces F&A(:.
Tamilnadu 8tate Transport orporation FT38T:.
*etropolitan Transport orporation F*T:, hennai.
8tate "%press Transport orporation F8"T:, Tamilnadu.
>erala 8tate 'oad Transport orporation.
*aharashtra 8tate 'oad Transport orporation F*8'T:.
Andhra )radesh 8tate 'oad Transport orporation FA)8'T:.
)arveen Travels.
8harma Transport.
#/
VISION
Achieving leadership in the mediumJheavy duty segments of the domestic commercial
vehicle market and a significant presence in the world market through transport solutions
that best anticipate customer needs, with the highest value 4to4cost ratio.
$ISSION
4Identifying with the customer.
4,eing the lowest cost manufacturer.
4$lobal benchmarking our products, processes and people, against the best in the
industry.
0UA"ITY PO"ICY
Ashok Leyland is committed to achieve customer satisfaction by anticipating and
delivering superior value to the customer in relation to their own business, through the
products and services offered by the company and comply with statutory re5uirements.
Towards this, the 5uality policy of Ashok Leyland is to make continual improvements in
the processes that constitute the 5uality management system, to make them more robust
and to enhance their effectiveness and efficiency in achieving stated ob?ectives leading to
#. 8uperior products manufactured as also services offered by the company.
+. *a%imum use of employees potential to contribute to 5uality and environment by
progressive up gradation of their knowledge and skills as appropriate to their
functions.
/. 8eamless involvement from suppliers and dealers in the mission of the company
to address customers changing needs and protection of the environment.
#9
2.1. OR+ANI2ATION CHART OF $3*. ASHO% "EY"AND "TD.

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1. FUNCTIONS OF THE $AJOR DEPART$ENTS SE"ECTED
The ma?or functional areas of the unit and the ma?or departments which oversee those
areas are catalogued as followsC
a: &' !epartment
b: (inance !epartment
c: *arketing !epartment
d: )roduction !epartment.
A brief review of each department and its activities as followsC


#0
6((I"'

a/ HU$AN RESOURCE DEPART$ENT OF ASHO% "EY"AND
"TD.
HU$AN RESOURCE $ANA+E$ENT
&uman resource management is defined as the managing function of employees,
developing and compensating &' resulting in creation and development of human
relations with the view to contribute proportionately to the organizational,
individual and social goal.
VA"UE STATE$ENT
M.e consider our employees as our most valuable asset and are committed to
provide full encouragement and support to them, to enhance their potential and
contribution to the companys businessN.


#<

DEPART$ENTA" STRUCTURE#




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FUNCTIONS OF HR DEPART$ENT#
1/ HR AC0UISITON
'ecruitment
8election
2/ HR DEVE"OP$ENT
Training and development
6rganization development
1/ PERFOR$ANCE AND CO$PENSATION
)erformance appraisal
Incentives and benefits
4/ $OTIVATION
reating motivation environment
"mpowerment and participation
&' *obility
1/ HR AC0UISITION
RECRUIT$ENT
'ecruitment is the process of Ofinding and attracting capable applicants for employment.
The process begins when new recruits are sought and ends when their applications are
submitted. The result is a pool of applicants from which new employees are selected.

SOURCES OF RECRUIT$ENT
The following are various e%ternal sources of recruitmentC
#. onsultancies
+. ampus recruitment
/. Lateral entries
+=
1. CONSU"TANCIES
The department heads where re5uirements are needed informs to the &' department
about the re5uirement. The concerned persons for recruitment gets approval for filling the
vacancies. Then the consultancies are approached telling the re5uirements. The fit
applications are mailed to attend the interview. If satisfied, they are called for the
personal interview.
2. CA$PUS RECRUIT$ENT
The recruitment panel goes to the reputed colleges to select the candidates.
6n the following basis they recruit the candidates
$"Ts 4 $raduate "ngineer Trainees
!"Ts 4 !iploma "ngineer Trainees
ITI4 Industrial Training Institute
1. "ATERA" ENTRIES
They pick the e%perience candidates or people from other companies. The
following is the process of lateral entry recruitmentC
#. 8ourcing
+. Interview
a. .ritten test
b. Technical round interview
c. )ersonal Interview
PROCEDURE FOR "ATERA" RECRUIT$ENT
)re48election
8election
)ost48election

+#

PHASE 1# PRE5SE"ECTION
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'"I7I8ITI63

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I!"3TI(IATI63 6(
)'68)"TI@" A3!I!AT"
-ob site search
Internal references
&iring consultants
!irect applicants

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PHASE 2# SE"ECTION


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PHASE 1# POST SE"ECTION
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SE"ECTION
The selection procedure is concerned with selecting the right candidate at right time for
right place. The selection procedure saves a lot of time and money by eliminating
candidates who are not eligible for the post.
STEPS IN SE"ECTION
'eceiving of application
)reparing of shortlist by the department
@erification of resume by department head
Interview Fone round:
)sychological test
'eferenceJ,ackground information
(inal selection
)lacement
2/ HR DEVE"OP$ENT
TRAININ+
Training is an on4going process aimed at capability4building of the employees at all
levels. In todays competitive mileu, organizations are increasingly turning to training to
capture the cutting edge. As they manage growth in a constantly changing environment.
)urposive training and planned re4training have an ac5uired priority status on the
corporate agenda. entre stage in Ashok Leyland training endeavours is the management
development centre, at hennai and &osur. Training programme is classified into
8kill
>nowledge
Attitude

+;
TRAININ+ PROCESS OF ASHO% "EY"AND "TD.
+1
Trai!i!6
Need
I!7)t
S)rce*
B)*i!e**
P(a!
Pririty Need*
8 de7t*.3 )!it*
Cm7ete!cy
$a77i!6
Ye* I!itiati'e

Cm7ete!cy
$a77i!6
Per8rma!ce
A77rai*a(
19:
:
Feed;ac<
0)ad 1
E.ec)ti'e*
C(imate
S)r'ey
Trai!i!6 P(a!
Trai!i!6
O;=ecti'e*
"ear!i!6 O)t(i!e*
Pr6ramme De*i6!
>
$et&d(6y
Ide!ti8icati! 8

Fac)(ty Re*)rce
E88ecti'e
$ea*)re*
Sc&ed)(e 8
Trai!i!6
Sc&ed)(e 8
Trai!i!6
Trai!i!6
E88ecti'e!e**
O!5 T&e ? J;
E'a()ati!
E'a()ati! 8
Fac)(ty
Re*)rce
E'a()ati! 8
Trai!i!6
Pr6ramme
Trai!i!6 7r6ram* i! A*&< "ey(a!d are#
Iuad # e%ecutives
ompetencies and priority needs of departmentsJ units
"4learning
Induction for !"T F+ years: $"T F# year:, Laterals F0 days:
$"3*6! training program.
$eneral4)lanning for retirement
,udget spent for training F<hrs4 #day: middle managers F/ to 9 persons: is /49 lakhs
,OR%$EN CAPABI"ITY BUI"DIN+
Training A !evelopment for the unionized employees at the manufacturing units is
focused on skill development. ,oth internal and e%ternal training is given for associates.
$uest lectures of e%ternal faculty and various other industrial visits will be arranged for
associates. In addition to some programmes like engineering drawing and waste
elimination are also conducted.
TRAININ+ FOR SENIOR3 $IDD"E "EVE" $ANA+E$ENT
,oth e%ternal and internal training is given for the e%ecutives. (aculty from outside
agencies will be arranged for training them. They also get faculty from corporate level.
Training for seniorJmiddle level management is done on the following basisC
#. Technical
+. ,ehavioral
/. (unctional
$ANA+E$ENT DEVE"OP$ENT P"AN
*anagement development plan of Ashok Leyland focuses on the following competencies
)eople leadership
Transformational leadership
)ro?ect management capability
'esult orientation
"ntrepreneurial perspective
+0
&' processes such as ?ob evaluation and competency mapping will be dovetailed into the
development plan to enhance ob?ectivity and effectiveness.
DEVE"OP$ENT ACTIVITIES
The following are the developmental activitiesC
T"I H Total "mployee Involvement
($ H ross (unctional $roup
I H Iuality ircles
88 H 8uggestion 8cheme
'e4deployment
1/ PERFOR$ANCE AND CO$PENSATION
PERFOR$ANCE APPRAISA"
M)erformance appraisal is the systematic evaluation of the individual with regard to his or
her performance on the ?ob and his potential for developmentN
In Ashok Leyland graphical scale method is followed, it is also known as linear rating
scale. In this, a printed appraisal form is used for each appraise. The form consists of
various employee characteristics and his ?ob performance. @arious characteristics include
initiative, leadership, dependability, creative ability, analytical ability etc..,
The rating is done on the basis of scale which is in continuum representing various
degrees of particular 5uality. Ashok Leyland use numbers say ;, 9, /, + and # to denote
points for various degrees of e%cellent4poor, high4low, good4bad and so on.
The appraisal form is divided into < parts where under each part separate sections are
being covered.
)art I4 )erformance in the present ?ob F"mployees achievements, goals:
)art II4 .ork behavior F)lans, ob?ectives, activities, e%ecution of plans:
)art III4 Abilities F-ob knowledge, commitment to achieve results at work:
)art I@4 )otential F Areas of interest, personality traits, strength, weakness:
)art @4 6verall performance rating F ,ased on assessment of part I, II III:
)art @I4 Training need FTo improve performance in present ?ob, to assume higher
responsibility:
+<
)art @II4 !evelopment plan F-ob rotation, ?ob enlargement, special assignmentJ
reputation:
)art @III4 6ther comments
Fi'e 7i!t *ca(e 8 A*&< "ey(a!d *&@i!6 (e'e(* 8 7er8rma!ce#
A4 "%ceptional 4 onsistently outstanding performance.
44 8uperior 4 4 )erformance which is consistently significant beyond ?ob
re5uirements contributes in related area also.
14 $ood 4 )erformance which ade5uately meets ?ob re5uirements
and occasionally produces good over and above re5uirements
24 ,arely satisfactory 4 -ust meets minimum ?ob re5uirements
14 7nsatisfactory 4 !oes not meet ?ob re5uirement at all.
The appraisal form also consists of customer satisfaction survey where the need, service
provider and period of assessment are all identified. It also follows graphical scale
method using a five point scale based on the criteria
#:Iuality F ustomer needs, service information, 5uality works, complaints etc..,:.
+:!elivery F!elivery time, point of use, use or partsJservice information:
/:ommunication FInteraction with customers, listening to customer views, timely
feedback, and review changes with the customer:
9:'esponsiveness F'esponding to customer complaints, changes to customer needs:
;:Improvement F)ositive attitude for improvement, implementation A effectiveness of
improvement and improvements at the customer end:
O'era(( C)*tmer Rati!6 P #Q+Q/Q9Q;
;

E$P"OYEE RETENTION
Per8rma!ce (i!<ed 7ay
The company has an annual appraisal system in place and pursuant to this system,
performance linked pay, annual variable pay andJor commission is paid to the employees.
Em7(yee mti'ati!
+2
Ashok Leyland targets #==D of its employees to be involved in its continuous
improvement activities. 'eward systems such as I*)'6@", 'I8", ,IT"8, #==D L7,
and $"*,A passport scheme motivates people to contribute their ideas.
INCENTIVES
#: 8urcharge on !irect ,ooking Incentive.
+: 8pecial Incentive 8cheme.
Em7(yee @e(8are *c&eme*
The following are the welfare schemes available to the employees.
anteen facilities
*edical claims
Transport facilities
Ashok Leyland school for their children
8cholarship schemes
'ecreation facilities
BENEFITS
1/ T)iti! 8ee re8)!d#
'eimbursement of e%penses related to course fees, e%amination fees and purchase of
books is allowed upto 0;D of amount spent per academic year sub?ect to a ma%imum
amount as given by personnel administration.
2/ $a=r medica( 7(a!#
,enefits will be available within the laid down overall limits for self dependants viz.
reimbursement of medical e%penses and interest free loan
1/ $edica( reim;)r*eme!t#
!omiciliary e%penses incurred on domiciliary medical treatment shall be reimbursed
sub?ect to the annual limits fi%ed from time to time.
4/ Dme*tic tra'e(#
/=
,oarding and lodging e%penses per diem allowance, when an employee opts to makes his
own arrangements , out of pocket e%penses, other e%penses such as local conveyances,
office phone calls.
A/ C!'eya!ce reim;)r*eme!t#
It is made on self certification of e%penses by the e%ecutives. This will stand withdrawn
in the event of company transport being provided.
9/ Ve&ic(e (a!#
Interest free loan upto #==D of the cost of a new two wheeler sub?ect to a ma%imum
limit stipulated from time to time.
B/ +r)7 term i!*)ra!ce#
It is in addition to the accident insurance cover provided by the company for e%ecutives.
In the event of accidental death, the beneficiaries will receive benefit under both policies.
C/ Si.t& day cm7e!*ati! -ie. Sat)rday/#
"%ecutives in $ +; Forporate $rade: and below will be paid 0.;D of basic salary for
every 1
th
day Foptional: worked. The 1
th
day compensation as indicated above will be
considered as salary for the purpose of contribution to )( and eligibility for bonusJ "%4
gratia.
D/ $ater!ity (ea'e#
Total periodC #+ weeks leave with pay F1 weeks before delivery and 1 weeks immediately
following the delivery: for lady e%ecutives.
1:/ "ea'e#
All e%ecutives are eligible for privilege leave F)L:4/= days, sick leave F8L:4 0 days,
casual leave FL:4 0 days, national and festival holidays. All leave will be credited in
-anuary, every year.
11/ Retireme!t a6e#
The age of retirement from companys service will be the last day of the calendar month
in which the e%ecutive attains the age of fifty eight years.
1/ $OTIVATION
CREATIN+ $OTIVATIN+ ENVIRON$ENT
+E$BA#
/#
$emba is a -apanese word meaning M'eal )laceN where the real action takes place.
In the manufacturing business, $emba is the shop floorG in a service business, the place
where the customer and the service come together. It is also the 5uality of human
interaction in the workplace between co4workers, with customers and business partners.
Launched in -une +==; as a company4 wide initiative, *ission $embas ob?ective is to
provide information, develop skills and empower employees to reach world4class levels
in 5uality, cost and delivery. The logic is simple and undisputableC value is created at the
$emba and the $emba knows its work best.

+E$BA %AI2EN#
Three ground rules for practicing kaizen in $emba.
#. &ouse >eeping
+. *uda "limination R.aste "liminationS
.aste of over production
.aste of inventory
.aste of waiting
.aste of *otion
.aste of transportation
.aste of )roducing 'e?ects
.aste of processing
/. 8tandardization.
+E$BA $ISSION#
3BiQ#
3ew 0 initiatives
#. Increase in the number of $"*,A
+. ;s R8"I'I,8"IT63,8"I86.8"I>"T87,8&IT87>"S
/. ""I F"ffort and "rgonomy inde%:
9. *I Fost management initiative:
;. Inventory Initiative
1. ritical machine uptime
/+
0. Iuality
<. 8afety.
E$PO,ER$ENT AND PARTICIPATION
I$PROVE
Improve is an annual company4 wide event to record, recognize and award employees for
their positive involvement in organizational growth innovation and customer satisfaction.
RISE
The e%pansion for 'I8" is 'eward (or Individual 8earch (or "%cellence. It is an
integrated award and is given to the associates. If an employee does some good activity
or work apart from his usual one he is being awarded with 'I8".
T0$ ? Tta( 0)a(ity $a!a6eme!t
The main ob?ective of the TI* cell is to set human in a good manner to achieve the
goals. The 5uality circle includes 1 people which include ; associates and # e%ecutive.
Their main function is to identify the problem, find the solution and to implement it.
HR $OBI"ITY
PRO$OTION OPPORTUNITIES
)romotions is based on the seniority, eligibility for post , efficiency, skill, 5ualification
etc.., The management decides whether to fill a post of outside recruitment or through
promotion. .orkman shall be considered for promotion to a post based on certain rules.
&e has rendered a minimum period of 5ualification service of five years.
&e possesses the 5ualification prescribed for the post to which he is to be
considered.
(ulfills prescribed attendance.
SEPARATIONS
8eparation involves cessation of services of personnel from an organization. .hen
people leave the organization, "%it interviews are usually conducted to know the reasons
for leaving. The common reasons given areC
//
,etter opportunities
Lack of growth
A""O,ANCES
&ouse rent allowance
.ashing allowance
7niform and stitching allowance
3ight shift allowance
onveyance allowance
*ilk and vitamins allowances
(le%ibility allowance
Iuality certification allowance
!irect production allowance
/9
;/ FINANCE DEPART$ENT OF ASHO% "EY"AND "TD.
(inance is considered as the life blood of business. This is because in the modern money4
oriented economy, finance is one of the basic foundations of all kinds of economic
activities. (inance function may be defined as the procurement of funds and their
effective utilization.
RESPONSIBI"ITIES OF FINANCE DEPART$ENT#
The pricing department is responsible for the fi%ing of prices for sales of the
vehicles and for buying of raw materials and semi finished goods.
Treasury section is responsible for all kinds of funding managements such as
investments.
Ta%ation section is responsible for remittance of ta%, filing of returns, handling of
litigations etc..,
osting and ,udgeting department is responsible for the unit costing of each
product in particular, such as spare parts and a vehicle as whole.
The (8$ F(inance account 8ervice $roup: deals with the payables and
recievables at regional offices.
The "%plore finance department deals with the (8$ e%porting of items.
The same functions and responsibilities are allotted to the accounting and finance
department of the manufacturing plants in "nnore, &osur4#, &osur4+,
&osur4+A, Alwar, ,handara, )antnagar.
/;

DEPART$ENTA" STRUCTURE#
*A3A$I3$ !I'"T6'

(6
)ricing *anufacturing 7nits
Treasury
"nnore
!irect
Ta%ation &osur4#
Indirect
osting and ,udgeting &osur4+
orporate onsolidation &osur4+A
(8$ Alwar
F (inance account 8ervice $roup:
/1
,handara
"%plore finance )antnagar
DEPART$ENTA" STRUCTURE
-AUTHORITY F"O,/

/0
*A3A$I3$ !I'"T6'
&I"( (I3A3I3$ 6((I"'
$*4(I3A3"
A$*4(I3A3"
!$*4(I3A3"
A88T. *A3A$"'
8"3I6' 6((I"'
!I@I8I63AL *A3A$"'
*A3A$"'
8"3I6' *A3A$"'
!")7TB *A3A$"'
RO"E OF FINANCE#
'ecorder Faccounting: of all (inancial Transactions
'eporting of (inancial )erformance
Arranging long and short term funds H apital and !ebt
.orking apital *anagement
ompliance of ta% and other corporate laws
'isk *anagement
ontrollership function
Audit coordination
Investor 'elations
PROCESS > ACTIVITIES OF FINANCE#
a/ Fi!a!cia( Acc)!t*
Iuarterly, &alf4yearly and annual results published as per listing re5uirements
Limited 'eview J audit coordination.
Annual 'eports H !isclosures made are comprehensiveG complied much before
they become mandatory
"arly completion of accounts, audit processG forefront in adherence to accounting
standards A other guidelines.
Audit ommittee H comprises of 8talwarts from the profession.
Automation of processes
;/ Fi!a!cia( P(a!!i!6 > C!tr(
/<
6((I"'
(inancial )lanning includes estimating the amount of capital to be raised and
laying down the policies as to administration of the financial plan.
*onthly *I8C @ery omprehensive with wider coverage and highly informative.
*onthly review covers business volumes, market share, physical and financial
parameters including alerts on laggards, e%ceptions in all fronts.
"%ception reporting and )rofit management measures form integral part of this
process

c/ Trea*)ry $a!a6eme!t
4 'aising of (unds
4 (unds *anagement
4 !ebt 8ervicing
4 'isk *anagement
T (inancial instruments for (unds raising would depend on end use of fundsG de4
risking is an important consideration in deciding the instrument.
T ape% and long term working capital re5uirements are funded through share
capital and long4term debt.
T (inancial Instruments used include
4 Long term fundsC 8hares, $!', ",s, !ebentures, term loans etc.
48hort term (undsC ash credit, !emand Loans, ommercial paper, (3',
etc.
*a?or funds raising in AL include $!' of 78U#/9 *n. in #22; A ", of
78U/#;*n incl. 78U +== *n. in !ec +==0.
T Level of debt FLong4term:C 's. ++<=.99 cr as on /#J/J#=
T ,anking relationships for working capital is managed through onsortium of
banks comprising of #9 banks H (und based 's.1== cr A 3on4fund based 's.0;=
cr.
T F)!d* $a!a6eme!t includes managing collections and outflows and
surplusJdeficit management. loser working with *arketing and 7nits is vital.
T 8urplus management includes investment in (i%ed !eposits, *utual (unds, etc.,
!irect investment in e5uity avoided.
/2
T De;t Ser'ici!6 includes repayment of principal and payment of interest on due
dates and ensuring that commitments made are adhered to.
T Ri*< $a!a6eme!t is vital since organization is e%posed to both currency as well
interest rate risks. 'isks offer both threats and opportunities Fcan increase income
or reduce e%penditure:. 'esults depend on how well they are managed.
Credit rati!6
Long Term J . 8hort Term
'I8IL AA F4: )#Q
I'A LAAF4: A#Q
d/ C*ti!6 > Prici!6
T 8trategic pricing of products, 5uotes for various tenders.
T 8pecial pricing for e%port contracts.
T *onitoring of cost of production of various models and for make or buy decisions
T )ro?ect J cape% evaluations for optimization and for making commitment
decisions
e/ Ta.ati!
T ompliance with !irect FIncome Ta% Act, .ealth Ta%: A Indirect Ta%es F"%cise,
ustoms, 8ervice Ta%, 8ales ta% etc:.
T Ta% planning is an important component of business decisions.
T 'ecent ma?or developments include introduction of 8ervice Ta% legislation and
@AT across many 8tates.
T Aligning the business process across the organization and ma%imizing the benefits
against such legislations is a ma?or task handled by (inance.
T 'egular tasks include remittance of ta%, filing of returns, handling of litigations
etc.
8/ I!'e*tr Re(ati!*
T In AL, *utual (unds, (II etc.., hold /+D of shareholding besides public who hold
#=D.
9=
T (II A *utual (unds represent investment community who track companys
performance continuously very closely.
T !issemination of data relating to companys performance and developments very
important and sensitive.
T &andled through presentations in periodic investor meet, web4cast, tele4
conferences, individual meets, address in T@ etc.
T )resentations made are hosted in companys website
P"ANNIN+ > $ANA+IN+ CASH F"O,S#
#. P(a!!i!6 ca*& 8(@*
'olling Iuarterly cash forecast prepared and monitored weekly seeking
e%planation for variance in order to control and direct operations.
2. $a!a6eme!t 8 dai(y 8)!d*
ollections from 92 locations pooled under cash management system in to
centralized accounts with consortium banks at hennai.
@arious payments reported are collated and funded for in the various bank
accounts depending on the e%pected debits.
8urplus for the day, if any, invested for tenor which is based on re5uirement of
funds back in to the system.
!eficit funded through short term loans from banks, availed based on best
product available J rate offered
STRATE+IC +OA"S#
T 'aise resources to the tune of roughly 78U #.< billion for funding e%pansion plans
of AL, 3issan and other -@s over the ne%t / years
T Achieve optimum funding mi% J restructuring of companies to minimize the cost
of raising of funds.
T *a%imize ta% efficiencies to improve cost competitiveness of products and
improve viability of pro?ects.
T *ake globalization a reality through ac5uisitions and setting up of new ventures
abroad by leveraging ALs strengths.
9#
T ,ench mark financial processes to the best in the world and improve the barG
maintain high standards of financial discipline.
T *aintain e%cellent relations with international investor community through
effective communication for international offerings.
FINANCIA" CHA""EN+ES AHEAD#
T $lobal slow down challenging break even.
T !ecrease in *argins due to inability to pass on cost increases due to competitive
pressures H partially compensated by increase in volumes.
T )rofitability pressures due to changes in business mi% and commodity price
movements.
T (ore% management H unforeseen volatility in ma?or currenciesG particularly
important with fore% loans
T 8upporting inorganic growth H evaluation A funding of emerging options.
T 3eed to fund ma?or cape% A investments H 's.+9== cr in the ne%t / yearsG ma?or
investments in -@s
T Tackling financial covenant breaches.
T Increase in interest rates
T ,usiness integration of overseas units.
T *anaging e%pectations of stakeholders
9+
FINANCIA" RESU"TS#
R*. i! "a<&
2::B5:C 2::C5:D 2::D51:
8ales @olumeC
@ehicle Fnumbers: <//=0 ;99/# 1/2+1
"ngine Fnumbers: ##0;0 +#990 #2=;=
8pare parts and others 02#+9 02212 <<;=1
3et salesJIncome from operations 009+;< ;2<#=0 0+990#
$ross operating margin <+=/< 91299 01+<9
(inancial e%penses 9209 ##<0# <##/
6ther income ;01= 921+ 0=9;
$ross profit F),!T: <+<+9 9==/; 0;+#1
!epreciation #00/1 #0<9# +=9##
)rofit before ta% 1;=<< +=<9; ;9900
)rofit after ta% 912/# #2=== 9+/10
)aid up e5uity share capital Fface
value per share 'e.# each:
#//=/ #//=/ #//=/
,asic earnings per share F's.: /.;/ #.9/ /.#<
!ividend per share F's.: #.; #.= #.;
Cmme!t*#
8ignificant reduction in material and operating costs supported by pricing action has
improved margins in the year +==24#=
9/
c/ $AR%ETIN+ DEPART$ENT OF ASHO% "EY"AND "TD.
*arketing is concerned with the people and the activities involved in the flow of goods
and services from the producer to the consumer.
Ashok Leyland has been offering world class products to millions of customers to 9=
countries across the world.
Its main product line include Trucks, ,uses, !efence vehicles and special vehicles and
engines for Indian and 6verseas market.
Ashok Leyland is
The market leader in Indian bus market offering 3$, !ouble decker and
@estibule bus variants.
The market leader and pioneer for multi4a%le trucks and tractor4
trailers.
"n?oys market supremacy in diesel engines for Industrial, $en4set and
*arine applications .
Largest supplier of logistic vehicles to the Indian Army.
6ffers MTotal *aintenance 8olutionsN through maintenance contracts for its
products, relieving the customers of all maintenance worries.
%EY ASPECTS OF APPROACH#

8AL"8 A 8"'@I"
*A'>"TI3$ 78T6*"' 87))6'T
99
DEPART$ENTA" STUCTURE#
9;
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ADVERTISIN+#
The need for advertising was felt by Ashok Leyland in +==14=0 when they had to pro?ect
the transformation that has occurred within Ashok Leyland, but as yet not communicated
to the public. They came up with a product related Ad campaign and a orporate
campaign. Their aim was to let their target audience perceive their brand as International,
Innovative and 8peedy, which has always been their core brand value. At the All India
)' awards +==0 conducted by the )ublic 'elations 8ociety of India F)'8I:. Ashok
Leyland won the second prize for their corporate campaign. They gave a prelude to the
campaign by e%hibiting their product range and their field of pioneering.
This was followed by a three ad campaign.
EON"Y AN ASHO% "EY"AND EN+INEER ,I"" BE INSPIRED BY RAA+
$ADHUVANTI TO CREATE 0UIETER "UFURY COACHESG.
EON"Y AN ASHO% "EY"AND EN+INEER ,I"" CA"CU"ATE THE RP$ OF
THE BA""H ,HEN A IDOOSRAJ IS BO,"EDG.
EON"Y AN ASHO% "EY"AND EN+INEER ,I"" ,ATCH ITITANICJ TO
SPOT THE DESI+N F"A, IN THE SHIPG.
Also a television commercial was aired in +==0. The commercial was made in two
languages4 &indi and Tamil. It was broadcast on mainline news channels for wider
coverage. There were translites placed at airports for greater visibility.
ASHO% "EY"AND5 THE BRAND#
M"3$I3""'I3$ B67' T6**6'6.8N has been Ashok Leylands ,rand promise.
The tag line finds e%pression at two levelsC on the hard core strategy level, that is the sum
total of the essential values of vehicle technology4safety, comfort, economy and ecologyG
on the aspirational level, it denotes a warm and caring relationship with each stake holder
in a uni5ue way.
Bra!d 'a()e*
The two most visible4 and recognized4 components of the brand are the dynamic MLN logo
and the name of Ashok Leyland. The name has historic reasons4 and time less meanings.
Ashok meaning &appy is the name of the companys founder 'aghunandan 8arans son.
The second part of the companys name has come to cue the international aspect while
91
the first part, so unmistakably Indian, has un4declined the custom built relevance of the
companys products and operations in the Indian conte%t.
,rand Ashok Leyland is essentially and e%periential brand, its values felt in day to day
life4 more palpably by its immediate customers and end users. The core of the brand has
always been innovative, international, speedy, moving with times4 and often4even ahead
of it. The innards of Ashok Leyland vehicles have always been contemporary. The core is
now being matched by contours of the new, modern, future ready range of vehicles.
In +==1, Ashok Leyland felt a need for change in perception of image among its public
after its research feedback by its brand study. Though the company has pioneered many
product concepts, and technologies, it was perceived to be a slow, elderly and not modern
brand. This made it necessary for Ashok Leyland to bring about a shift in perception and
reinforce the fact that the company was fundamentally strong, masculine, traditional,
sincere, transparent, financially managed and innovative. As per the research, the
company was a fairly strong brand with good recall value. It was seen as an e%periential
brand, where the public related to it thought very high of it but those away from the brand
has only a fuzzy image of it.
Thus emerged the new Ashok Leyland with a new face. The tangible shift began with a
change in the typeface of the brand name along with a baseline. Also the company came
up with a corporate identity manual which was strictly to be followed by all. The content
specified brand name usage in various areas. @arious advertisements were aired to
promote the brand. The launch of a new website opened to doors to the world outside.
Also screening of its corporate film helped them gain publicity.


90
$AR%ETIN+ PROCESS#



CUSTO$ER
$AR%ETIN+ ENVIRON$ENT#
Legislative changes related to commercial vehicles.
Improving efficiency in railway operations.
ustomers demanding more from manufacturers.
8ervice products becoming important buying decision.
"ntry of multi4national players.
&igher growth rate in L@ segment.
!irectly competing with railways.
'oad vs 'ail share stabilizing
8hift towards &ub and 8poke model
9<
!"LI@"'I3$
8ales
8ervice
3etwork )lanning
73!"'8TA3!I3$
ustomer J*arkets
*arketing Initiatives
87))6'TI3$
)arts
A*
7sed @ehicles
Transport
"%change
BUSINESS INTEREST#
*edium A &eavy commercial vehicles.
!efence
"%ports
Industrial applications
8pare parts
8ervice products
$AR%ETIN+ STRATE+IES AND P"ANS OF ASHO% "EY"AND#
NE, PRODUCT "AUNCHES
The company is e%pected to launch a slew of new products in the markets which is
e%pected to propel the demand for its products.
INCREASIN+ +"OBA" FOOTPRINT
The company is now targeting new strategic markets with increased thrust on the
Asian and African countries.
P"ANS TO $EET THE +RO,IN+ NEEDS OF THE $AR%ET
The company is constantly reviewing their strategies. They are moving into higher
value added ?obs because it becomes very important to engage workmen fully and
also their efficient utilization.
FACTORS AFFECTIN+ +RO,TH#
Infrastructure development
6verall economic growth
'estrictions on overloading
,etter operating economy of new trucks
'estrictions on the age of vehicles
'eplacement demand due to changes in emission norms
92
CURRENT P"AYERS IN THE CO$$ERCIA" VEHIC"E INDUSTRY#
Ashok Leyland
Tata *otors
"icher *otors
8wara? *azda
@olvo
Tatra 7dyog
(orce4*A3
Asia *otor .orks
*ercedes ,enz
8cania
&ino *otors
!aimler 4hrysler
3ew entrants on the anvil4 *ahindra 3avistar,7'AL

ASHO% "EY"AND5 DISTRIBUTION NET,OR%#


;=
P"ANT

$AR%ETIN+
RE+IONA"
SA"ES OFFICE

DEA"ERSHIP
CUSTO$ER
CUSTO$ER
+ROUP
ASHO% "EY"AND5 $AR%ETIN+ NET,OR%#
'egional offices4 #=
Areas offices4 #<
'egional sales offices4#2
)arts warehouse40
*ain dealers4 9/
!ealer outlets4 #00
Authorized service centres4 #9;
8ervice bays4 +/;+
DISTRIBUTION CHANNE" ? SA"ES#
RE+ION RE+IONA" OFFICE AREA OFFICE
8outh4# hennai hennai, *adurai, "ranakulam
8outh4+ ,angalore ,angalore, &ubli
8outh4/ 8ecunderabad 8ecunderabad
.est4# *umbai *umbai
.est4+ Ahmedabad Ahmedabad
entral 3agpur 3agpur, Indore
3orth4# !elhi !elhi, Lucknow
3orth4+ -aipur -aipur
3orth4/ handigarh handigarh
"ast >olkata >olkata, ,hubaneswar,
-amshedpur, $uwahati
;#
PRODUCT PROFI"E -Nt E.&a)*ti'e/#
Ashok Leyland offers a comprehensive product range with trucks from 0.; tons $@. to
92 tons $@.F$ross @ehicle .eight:. (rom #2 to <= seaters in passenger transport, a
host of special application vehicles and diesel engines for industrial gensets and marine
application. )roduct profile can be broadly split into five categories viz. ,uses, Trucks,
defence vehicles, special @ehicles and "ngines.
BUSES
LB3L ,84II @iking ,84II #+ * ,us4,8 II
heetah F(ront engine: @iking ,84III @iking AL
Airport Tarmac oach @estibule ,us )anther F'ear engine:
ruiser @iking 3$ ,84III (alcon F(ront engine:
8tag ,84II !ouble !ecker
TRUC%S
9%+ &aulage models "comet
9%+ and *ulti4a%le Tipper Tractor
*ulti A%le vehicles
DEFENCE VEHIC"ES
8hort hassis ,us (ield artillery tractor omet 9%9
Topchi field Artillery tractor Long hassis ,us
8tallion 1%1 8tallion truck fire fighting
SPECIA" VEHIC"ES
&ippo tractor 8tallion *k III Tipper &ippo Tipper
,eaver tractor 'apid Intervention @ehicle
,eaver &aulage &ippo &aulage
EN+INES
$enset application *arine application
Industrial application !$ sets for e%ports
;+
VEHIC"E SA"ES#
SA"ES TURNOVER > PROFIT#
YEAR SA"ES TURNOVER
R*.Crre
NET PROFIT
R*.Crre
+==14=0 0#1<.#0 99#.+<
+==04=< 00+2.#+ 912./#
+==<4=2 ;2<#.=0 #2=
+==24#= 0+99.0# 9+/.10
Ashok Leyland registered a sales turnover of 's.00+2.#+ crores during +==04=<
compared to 's. 0#1<.#0 rore in +==14=0 showing an improvement of 0.<D
After a sluggish start in +==<, the sales turnover improved by +#D touching
's.0+99.0# crores in +==24#= compared to 's.;2<#.=0 crores in the +==<4=2.
The net profit rose by 1.9D in +==04=< to touch 's.912./# crores compared to
's.99#.+< crore in +==14=0.
8imilarly the net profit improved to #+/D to touch 9+/.10 crores in +==24#=
against 's.#2= crores in +==<4=2.
;/

YEAR
SA"ES i! U!it*
DO$ESTIC EFPORTS
TOTA" SA"ES
I! U!it*
+==14=0 00=12 1=+; </=29
+==04=< 01=++ 0+<; <//=0
+==<4=2 901#2 1<#+ ;99/#
+==24#= ;0290 ;202 1/2+1
d/ PRODUCTION DEPART$ENT OF ASHO% "EY"AND "TD.
)roduction is an organized process of manufacturingJproducing goods and services
through the use of input resources of men, materials, money, machine, methods.
PRODUCTION $ANA+E$ENT STRATE+IES#
"!6 ra!6e *trate6ie*
"ffective management of technology.
Innovation in product management and process technology.
$lobalization in industry.
$oodwill inside and outside the organization.
An aggressive marketing strategy and risk taking ability.
S&rt ra!6e *trate6ie*
Location and layout.
)roduct selection and technology.
apital selection and investment.
(le%ible strategy of production.
8tandardization of design.
"conomy of size and variety.
PRODUCTION SYSTE$#
Ashok Leyland employs a continuous production system, making use of special purpose
machines and produces standardized items in large 5uantities.
C&aracteri*tic*
8tandard products are manufactured.
8mall work in progress in involved.
*ore maintenance is re5uired.
*inimum cost of production per unit
!ivision of labour is made more efficient.
;9
DEPART$ENTA" STRUCTURE#
;;
EFECUTIVE DIRECTOR
5 $ANUFACTURIN+
P"ANT
DIRECTOR
+ENERA"
$ANA+ER
5 $ANUFACTURIN+
D+$ 5$F+
A+$5EN+INES
DIV 5$+R
SENIOR 5$+R
EFECUTIVES
ASSOCIATES >
DAI"Y RATED
,OR%ERS
D+$ 5CHASSIS
A+$5CHASSIS
DIV 5$+R
SENIOR 5$+R
EFECUTIVES
ASSOCIATES >
DAI"Y RATED
,OR%ERS
D+$ ?$F+
SERVICE
A+$5
$ECHANICA"
DIV ?$+R
$ECHANICA"
SENIOR 5$+R
EFECUTIVES
ASSOCIATES >
DAI"Y RATED
,OR%ERS
DIV ?$+R
E"ECTRICA"
SENIOR 5$+R
EFECUTIVES
ASSOCIATES >
DAI"Y RATED
,OR%ERS
DIV ?$+R
$ECHATRONIC
S
SENIOR 5$+R
EFECUTIVES
ASSOCIATES >
DAI"Y RATED
,OR%ERS
P"ANT "AYOUT#
)roduct layout is employed in chassis assembly and engine assembly where in the
facilities are arranged in a line as per the process se5uence of the component
manufactured.
C&aracteri*tic*
*echanized material handling.
Lesser work in progress.
8pecial purpose machines are used.
EN+INE ASSE$B"Y#
The engine case arrives at the first section and it is fitted with cam shaft
and flywheel.
The pistons are attached one by one to the crankshaft.
Later fuel filters, oil coolers are attached.
,elt and gears for the running came is attached in the ne%t section.
(inally the engine timing is set and sent for mounting on the body of a
truck or a bus.
FRA$E ASSE$B"Y#
STA+E 1C *ounting of side members and cross members
STA+E 2C *ounting of (ront 8pring4rear, (ront 8pring4rear, 'ear spring4front, 'ear
spring4middle, 'ear spring4rear.
STA+E 1C (itting of "ngine mounting brackets and ("8 mounting brackets
STA+E 4C 8ide members fastening to tor5ue limit, 8teering bo% bracket, 8ide *embers
reaming, (ront tie channel mounting
STA+E A# (itment of ("8 rear brackets, 8hock absorber brackets and Tor5ue checking
PASSIN+ STA+EC hecking and tilting
;1
STA+ES OF CHASSIS ASSE$B"Y#
Sta6e 1# Lay down regular
Sta6e 2# (i%ing of I A 7 bolt.
Sta6e 1# ,rake chamber.
Sta6e 4# 8teering gear.
Sta6e A# 8ilencer.
Sta6e 9# (uel J water separator.
Sta6e B# Air tank.
Sta6e C# (uel tank.
Sta6e D# "ngine mounting.
Sta6e 1:# AirJfuel piping.
Sta6e 11# )ropeller shaft.
Sta6e 12# A" link assembly
Sta6e 11# "%haust piping.
Sta6e 14# 'adiator.
Sta6e 1A# Tyre mounting.
Sta6e 19# Lubrication.
Sta6e 1B# (ront end structure F("8: ab mounting.
Sta6e 1C# ,umper.
Sta6e 1D# 8teering.
3ow the cockpit of the truck is mounted on the body of the truck correctly and then it is
sent for a drive or to the storage area. (or every #/ minutes a truck rolls out from the
factory and #/; chassis are assembled per day as per agreement.
,oth these sections have a conveyor belt on which each process is carried on. The belt
keeps on moving and the operator has to complete his designated ?ob or else its nothing
but an error.
;0
PDI -PRE DE"IVERY INSPECTION/#
Testing of vehicle on real road conditions
The following are the various tests done to test the vehicleC
#. 8peed test
+. Acceleration test
/. @ibration test
9. Tor5ue tightening
;. 6il level and water level checking
1. "lectrical components checking
0. Air leakage test
<. $rease level checking
2. )ower steering hose routing and clamping
#=. 'oad test

PRODUCTION PERFOR$ANCE#

YEAR PRODUCTION
I! U!it*
+==14=0 </;;<
+==04=< <9==1
+==<4=2 ;9=92
+==24#= 1910/

P"ANT EN+INEERIN+#
;<
)lant engineering is responsible for proper functioning of the plant by carrying out
maintenance operations such as electrical and electronics e5uipments maintenance, fork
lift charging and its repairing, repairing of pneumatic circuits etc.. It is also responsible
for maintenance works carried out in the organisation. The following are the various
types of maintenanceC
)redictive maintenance
)reventive maintenance
,reakdown maintenance
'outine maintenance
1. PREDICTIVE $AINTENANCE#
)redictive maintenance is done on assumption by e%perience before the occurring
or by any symptoms of occurring.
2. PREVENTIVE $AINTENANCE#
)reventive maintenance is work directed to the prevention of failure of a facility
1. BREA%DO,N $AINTENANCE#
,reakdown maintenance is work which is carried out after a failure, but for which
advanced provision has been made in the form of spares, material , labour and
e5uipment
4. ROUTINE $AINTENANCE#
'outine maintenance is done on even time or on routine basis. It includes machine
lubrication, replacement of bulbs throughout plant to arrest building deterioration.
DIVISIONS#
;2
)lant engineering is divided into 9 divisions to carry out its functions. The following are
divisions of plant engineeringC
"lectrical
*echanical
$."F$eneral .orks "ngineering:
ivil
PERIOD OF $AINTENANCE#
)eriod of maintenance is done on the basis of @"! analysis. It is also known as time
based maintenance. &ere @"! stands for
@ 4 @ital
" 4 "ssential
! H !esirable
ANA"YSIS DURATION
@4 @ital 1 months
"4 "ssential 2 months
!4 !esirable 6nce in a year
4. CORPORATE SOCIA" RESPONSIBI"ITY
1=
Ashok Leyland defines 8' asC V6ur commitment to improving the 5uality of life of our
employees, their families, the driver and the local communities around our units, and the
society.V
.ith 8' as an integral part of Ashok Leylands activities, all social initiatives are
structured and focused to enhance the commitment of employees and stake Hholders.
8' initiatives in Ashok Leyland are aimed at impacting positively, making a difference
and sustaining them, all efforts are focused upon livelihood enhancement, health,
education and environment.
Ashok Leyland encourages employee involvement, engaging the families of the
employees, and involving local, e%perienced and credible resources in all its 8'
activities.
CSR ACTIVITIES#
1/ F)! B)*
(un ,us is a gift from Ashok Leyland e%clusively for free users round the year by
children of orphanages, corporation primary schools and physicallyJ mentally
challenged children in hennai.
The seating layout reckons the re5uirements of physically challenged children.
The bus is e5uipped with a hydraulic lift for the convenience of wheel chair H
bound children.
2/ +ree! $i**i!
In +==+, all the vehicle manufacturing units of Ashok Leyland were I86 #9==#
certified with "nvironmental *anagement 8ystem.
The "nnore unit was recently identified as one of the model energy4 efficient
units by a II4T3", organized "nergy onservation F"363: mission.
8ystematic management of all energy resources from the #2<=s through better
house keeping and awareness has made this possible. The #2<=s also saw "nergy
audit being introduced. Improvement in machine tools, furnace4loading pattern,
design of heating elements and an energy efficient lighting system has all led to
energy savings of /=,0<+ units per day.
1#
(or "nnore, practicing the /'s of 'educe, 'euse and 'ecycle has surely paid off.
'ecently, an opinion survey conducted in the neighbourhood reveals that both
industries and the public are happy to have Ashok Leyland as their neighbor.
,uilding on the eco friendly measure over the years, "nnore has received I86
#9==# certification for "nvironmental management 8ystems.
1/ E88()e!t Treatme!t
The plant can do primary, secondary and tertiary treatment operations. About
;;,=== liters of effluents flow into the plant everyday. (ive kilograms of solid
hazardous waste is stored as per )ollution ontrol ,oard standards and the rest
water portion is treated and used for organic farming. 6n an average, +,;=,===
liters of recycled water is pumped into garden saving 's.#.; million per annum.
4/ +ree!i!6
The "nnore unit is known for its lush green cover. Almost #=D of the total
ground area ;/.9# hectares is covered by greenery creating an oasis in the arid
zone of "nnore.
A/ Aid* A@are!e**
In the mid42=s, the department of International !evelopment, ,ritish &igh
ommission, formed the Truckers Interim oordination 7nit FTI7: for a
focused programme among truck drivers. Ashok Leyland was one of the first
organizations to associate itself by becoming an intervention centre.
6utside the factory camps, and health education programs like lectures, cycle
rallies, film shows, e%hibitions etc. are conducted through our volunteers in co4
operation with AI!8 prevention and control pro?ect. They also provide
counseling services at our *edical center. ases which re5uire support service are
sent to O8eva >endra in ,angalore Fan 3$6 backed by rotary4 TT>:, 'I!8 Fan
3$6: in &osur, >ingsley ommunity entre4 Fan associate of ,ill and *elinda
$ates (oundation: in >rishnagiri.
9/ Dri'er Trai!i!6 Ce!tre
1+
Ashok Leylands 3amakkal !river Training entre near 8alem in Tamil 3adu
was started in #22; M to ready a driver for life on he road and off the roadN. (rom
the very beginning, the curriculum had included, besides functional sub?ects,
health education including yoga and AI!8 awareness along with the education on
the vehicle and traffic rules cum sessions on physical fitness, personality
development and health risks like smoking. The drivers also attend awareness
sessions on 8e%ually Transmitted !iseases.
Ashok Leyland has reached out to 2=,=== truckers during its training programme
in Tamil 3adu. A training centre is also located at Alwar.
B/ Cmm)!ity ,e(8are
8tarted in #229, the !haram &indu?a *atriculation and &igher 8econdary 8chool,
Thiruvottiyur, hennai, is managed by a ,oard of Trustees consisting of senior
e%ecutives and workmen of the company.
The company contributed one crore rupees in aid of relief operations for the
Tsunami victims. In addition, employees contributed another #; lakhs separately.
Ambulances are donated for worthy causes. (ree medical camps are held in
neighbourhood. "mployees participate in large numbers at periodic blood
donation camps held at the 7nits.
8ubstantial relief material was distributed in the worst affected districts of
Tamilnadu through 3$6s. The ompany is also working with the onfederation
of Indian Industry FII: for long4term solutions like fishing e5uipment and
community centers to the fishermen communities.
C/ S()d6e di*7*a(
A natural by4product of the painting process, sludge disposal has always been a
problem faced by the auto industry. At Ashok Leyland various actions have been
initiated over the years towards safe storage of sludge, ultimately leading to the
construction of secured landfills within the campus. 8ince paint had a high
calorific value, its use as a fuel was e%plored. The effort yielded positive results.

A. S,OT ANA"YSIS
1/
STREN+THS
#. $ood Training 8ystem.
+. $ood 6rganizational limate.
/. &igh *arket 8hare
9. 8killed "mployees
;. 8tandard Iuality )roduct
,EA%NESSES
#. &igh price
+. 8ales representatives are less
OPPORTUNITIES
#. !emand for heavy vehicle have steeped up all over the globe.
+. ompany provides better credit facility to dealers.
THREATS
#. &igh competition
+. )romotional programmes of other brands
/. omplicated national market
9. 3ew players entering the market.

19
9. CO$$UNICATION SYSTE$ AT ASHO% "EY"AND "TD.
The orporate ommunication department in Ashok Leyland started in #220. )reviously,
a part of marketing communications, the department has come a long way. It came into
e%istence when the management realized the need for a media friendly department to
communicate with its e%ternal public. Also there was a need to communicate e%tensively
to its internal public.
P);(ic*
CUTc)*tmer*mmmmmmmmmm
*8*d8*8*

1;

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A"
INTERNA" CO$$UNICATION#
"mployees form a vital part of any organization, thus it is re5uired to establish and
maintain mutual understanding with them. This will help the organization to increase
efficiency and productivity in the long run. ontinuous communication with the
employees will facilitate the organization to keep them updated on the current
happenings.
D@!@ard Cmm)!icati!#
*!s Letter
This letter is addressed to the internal public of the company by the *anaging
!irector, This letter is drafted by the orporate ommunications !epartment with
inputs from the *! and is circulated only internally once in three months.
*anaging director holds a meeting with the e%ecutives of the company every year
in a ;48tar &otel
ommunication *eet
The communication meet is one of those events where the top management
communicates directly with various departments of the company. &ere the top
management addresses the employees and makes a presentation which discusses
the future plan.
irculars.
"4mail
Telephone.
Ashley 3ews
U7@ard Cmm)!icati!#
AL )6'TAL I3T'A3"T4*!s )ortal
This link allows employees to post 5ueries to the *anaging !irector. The *!
then goes through them and either replies to it or forwards it to a functional head.
A copy of the reply by the functional head is sent to the *!. Any employee can
ask any 5uestion related to the company and its functions.
8oap bo%
It is a raised platform on which employees can give in suggestions and feed back
11
such as cost saving techni5ues, new technologies etc., and discuss over it. Any
employee having companys e4mail id can access to this link through AL4)ortal.
ounselling
I!8rma( cmm)!icati!#
6ral communication
Improve
An annual company wide contest for employee team pro?ects which gives them a
chance to think, innovate and improve. The teams are divided into .orkmen, open
and "%ecutive league. These teams compete under three different streams based
based on the theme of their pro?ect.
AL45uiz
The main aim of the 5uiz is to inculcate the five values of Ashok Leyland ie:
International, "thical, 8peedy, Innovative and @alue reator among the
employees.
EFTERNA" CO$$UNICATION#
"%ternal communication is the e%change of information and messages between an
organization and other organizations, groups, or individuals outside its formal structure.
The goals of e%ternal communication are to facilitate co4operation with groups such as
suppliers, investors and shareholders, and to present a favorable image of an organization
and its products or services to potential and actual customers and to society at large.
Cmm)!icati! media
.ebsite
Annual 'eport
ustomer -ournal4*oving (orce
6perators *eet
@endors A 8uppliers *eet
!ealers *eet
"%hibitions
*edia 'elations
8hareholder 'elations
10
The Annual $eneral ,ody *eeting
B. FINDIN+S
#. In this organization there is good employer4employee relationship.
+. It targets #==D of its employees to be involved in its continuous improvement
activities by motivating them through various financial and non4financial
incentives.
/. There is a well integration of all the functional departments which facilitates the
use of software like "') .
9. To solve work related problems, I FIuality ircle: and cross functional team are
made effective.
;. Ashok Leyland has not got a foothold in the lu%ury trucks segment in its domestic
market.
1. Advertisement is not given much importance.
0. The company is increasing its global foot print by entering Asian and African
markets.

1<
C. SU++ESTIONS
The company should concentrate more on the lu%ury truck segments to keep a
strong hold in the market
The company should earmark more money for the advertisement and sales
promotion of its products. It helps to increase the brand awareness and image.
The company should concentrate on markets in the international arena where its
competitors are less powerful.
12
D. CONC"USION
The summer internship and the resulted report have been of great help to the researcher,
as an aspirant manager, to understand the functioning of a ma?or establishment like
Ashok Leyland. The summer internship has also revealed many unknown facts about the
working of a manufacturing unit and familiarize about the assembling of commercial
vehicles.




0=
1:. BIB"IO+RAPHY
#: ".$. Pra*ad, &uman 'esource *anagement, +
nd
edition, 3ew !elhi, 8ultan
4hand A 8ons. Br.+==;.
+: P&i(i7 %t(er, *arketing *anagement, *illennium edition, 3ew !elhi,
)rentice &all of India F): Ltd., Br. +==#
/: Ashok Leyland In4 &ouse -ournal H A*&(ey Ne@*
9: @@@.a*&<(ey(a!d.cm
0#