Академический Документы
Профессиональный Документы
Культура Документы
CHAPTER 1
INTRODUCTION
PAGE 1
INTRODUCTION
Organizational studies is "the examination of how individuals construct organizational structures,
processes, and practices and how these, in turn, shape social relations and create institutions that
ultimately influence people", organizational studies comprise different areas that deal with the
different aspects of the organizations, many of the approaches are functionalist but critical
research also provide alternative frame for understanding in the field. The organizational study at
Apollo tyres Ltd, Perambra in Thrissur is a humble effort to understand and comprehend about
the organization. The organizational study is intended to access and to acquire the knowledge
regarding the functional as well as the management aspects of the firm. Apollo tyres are one of
the largest tyre manufacturing companies in India .The Company was incorporated in 1972 and
commenced its production in 1977. It was the first company to receive ISO 9001 accreditation in
the Indian tyre industry. The organizational study is done in partial fulfilment of the requirement
of the degree of Master of Business Administration.
Apollo Tyres is one of the largest manufacturing companies in India. The company was
incorporated in 1972 and commenced its production in 1977. It was the first company to receive
ISO9001 accreditation in Indian tyre industry. The company can be traced back to the 70s when
hard-nosed MNCs and Indian tyre major dominated the tyre industry. Apollo set up its very first
manufacturing unit in Perambra, Kerala in 1977, with a very huge production capacity of 185
tones. It was in 1982 that Apollo formulated and put in to action a series of pragmatic project
generating policies that led towards a turn around. A dynamic new management team under the
leadership of Vice-Chairman and MD, Mr. Onkar S Kanwar took over the helm of the company
affairs
PAGE 2
CHAPTER 2
DESIGN OF THE STUDY
PAGE 3
To analyze the practical aspect in relation to the theoretical aspect of the organization.
To gain a clear picture about the challenges and activities faced by the organization.
2.3 METHODOLOGY
To conduct the studies different methodologies have been adopted. The study was undertaken by
visiting the plant for a period of one month. Both primary and secondary data are used. Primary
DE PAUL INSTITUTE OF SCIENCE AND TECHNOLOGY (DiST), ANGAMALY
PAGE 4
Primary Data
Primary data do not exist already in records and publications. The researcher collected the
information through different methods. It includes,
Direct interview with the department heads.
Discussion with the divisional heads.
Interaction with workers in the company.
Data collected by observing the function of the organization.
2. Secondary Data
Secondary data refers to those data, which are gathered for some other purposes and are
already available in the firm internal records and commercial trade or government
publications. The various sources used in the form of:
Annual reports of the company.
Department manuals.
Periodicals, books, etc. published materials by the company
Internet websites (www.apollo.com)
The time allotted for completing the organizational study is only 30 days. Its not
enough for understanding about the organization in detail.
The company was reluctant to reveal some of its official documents & reports which are
confidential to them.
The study was limited only during the day hours. The working conditions of the
employees of the employees in the night shift are not studied.
PAGE 5
CHAPTER 3
INDUSTRY PROFILE
PAGE 6
INDUSTRY PROFILE
3.1WORLD SCENARIO
The most important application of rubber relates to the transport sector of which tyre industry
consumes over 60% of the total rubber produce. During the last 20 years tyre has been virtually
reinvented with most modern technologies like steel radial tyres, a milestone in the tyre
technology. Tyre sector is experiencing a rapid improvement with the advent of newer
technologies. The tyre industry begin to grow in India during 1930s.The growth of tyre industry
in India may be divided into 3 phase. In the first phase, multinational came to India and started
selling tyres. The first among them was Firestone followed by multinational like Good year
Dunlop etc.
World production has been fairly stable in the last five years. Wherein, the production in India is
found to be consistently increasing with an average growth rate of 6 percent during the last 10
years. The growth of the consumption of tyres in Indian market is steady. The variation in
worlds production and consumption is the major sources of concern on the price front for Indian
rubber sector in the free market regime, where global pressure of imports and exports could
make the rubber prices more volatile.
COMPANY
Michelin
19.4%
Bridgestone
19.4%
Goodyear
16.6%
Continental
7.1%
Sumittomo
4.9%
Pirelli
3.9%
Yokhohamo
3.5%
Kumho
1.7%
PAGE 7
23.5%
Table 1: Market Share of Various Companies
COMPANY
MRF
21.2
JK Tyres
17.1
Apollo
16.2
CEAT
14.5
Dunlop
7.0
Goodyear
6.0
Others
18.0
Table 2: Market Share of Leading Tyre Companies
Tyres Limited
JK Tyres Limited
Cross ply
Radial
PAGE 8
The history of Apollo tyres can be traced back 70s when MNCs and Indian tyre majors
dominated the tyre industry. Apollo Tyres Ltd a leader in the Indian tyre industry and a
significant global player, providing customer delight and enhancing shareholder value was
registered in 1972. The license was firstly given to Ruby Rubber works to start a tyre factory at
Changanassery .In 1975 Raunaq Singh purchased the license from Ruby Rubber works. It is one
of the flagship companies of Raunaq group.
The plant is situated at Perambra 50 km north of Cochin. Total area covered where 97 acres
which was bought from people who stayed there by, at cheaper rate. At the starting time the
production capacity was 54 tonnes per day. The Apollo tyre ltd owned by Raunaq group of
industries place an important rolling world tyre industry. The products include tyres, tubes and
flaps for all vehicles. The head office of company is at New Delhi and registered office is at
PAGE 9
accumulated losses of 26 crores could be wiped out with short spam of time. There second plant
was installed at Limda village at Baroda in Gujarat, which started production in 1991 having
capacity of 6.5 lakh tyre/annum. This is most modern plant. The R&D centre is also functioning
at this location.
The third plant at kalamassery was taken over by Apollo from Premier tyres .While take over
this plant was a sick unit. After the takeover Apollo spent a good amount in modernizing the
plant and now it is profit earning unit. The fourth plant was commissioned in 1996 at pune for
Manufacturing tubes. The entire requirement of tubes for all plants of Apollo is done from here.
Although the automotive sector in India saw negative growth in the medium and heavy
commercial vehicle segments, this downward trend was in contrast to the strong demand
witnessed by the tyre industry. Led by replacement market growth of over 10%, the tyre industry
registered a high single digit growth. The tyre industry is highly raw material intensive and a
major consumer of rubber. With raw material costs accounting for 70% of the cost of production,
any change in the price of rubber or the crude basket has a direct impact on the cost of
production. The comparatively stable raw material prices in the first half of FY 2007-08, coupled
with price increases undertaken by the industry in FY 2006-07, resulted in all the major players
reporting improved operating profit margins. This was after tour consecutive years of raw
material cost-push, both for natural rubber and crude oil-linked raw material basket.
The second half of FY 2007-08 again saw an upward trend for all major raw material prices and
the same is anticipated for the year ahead. As a result, margins are once again under pressure,
even while the demand-supply situation continues to be in favor of the industry.
PAGE 10
Exports
Innovation
Technology Progression
The fortune of this industry depends on agricultural and industrial performance of the
economy, the transportation needs and the production of the vehicles
The tyre industry is mainly dominated by the organized sector, the unorganized sector
holds away in the bicycle tyre
The ratio of natural rubber content to synthetic rubber content is 80:20, in Indian tyres the
ratio of natural rubber to synthetic rubber is 30:70
Economic activity
PAGE 11
CHAPTER 4
COMPANY PROFILE
PAGE 12
COMPANY PROFILE
PAGE 13
Understanding (MoU) with the Tamil Nadu government for increasing its investments in the
state to Rs 2,100 crore as part of its Greenfield project, on the back of expected demand for the
product.
The company currently produces the entire range of automotive tyres for ultra and high speed
passenger cars, truck and bus, farm, OffTheRoad, industrial and specialty applications like
mining, retreaded tyres and retreading material. These are produced across Apollo? eight
manufacturing locations in India, Netherlands and Southern Africa. A ninth facility is currently
under construction in southern India. The major brands produced across these locations are:
Apollo, Dunlop, Kaizen, Maloya, Regal and Vredestein.
In the three domestic markets of India, Southern Africa and Europe, Apollo operates through a
network of branded, exclusive or multiproduct outlets. In South Africa the branded outlets are
called Dunlop Zones, while in India they are variously named Apollo Tyre World (for
commercial vehicles) and Apollo Radial World (for passenger cars). Exports out of these three
key manufacturing locations reach over 70 destinations across the world, with key comprising
Europe, Africa, the Middle East and SouthEast Asia.
For Apollo Tyres, offering the right product to the right customer is essential. Special efforts are
made to understand customer needs and segment the market accordingly. After which, products
are developed for niche applications within a larger category to enable the company to provide
efficient, fuel and costsaving products to each customer segment. Innovation has always been
an integral part of the Apollo way of doing business; this applies as much to product
development and marketing as to how the company as a whole is focused on challenging existing
boundaries.
An integral part of the Apollo Tyres world is its community involvement and giving programmes
directly related to its business. In India, the focus has always been on finding ways to ensure
direct benefits to customer groups. For the commercial vehicle community the company runs
extensive HIVAIDS awareness and prevention programmes and has established Health Care
PAGE 14
Alloy Wheels
Van Tyres
OffTheRoad Tyres
Awards / Recognition
Automotive Product of the year Award for Acelere Sportz at NDTV Car & Bike Awards
Apollo Safe Drive campaign won the IRTE Road Safety Award
Kerala State Energy Conservation Award 2006 to Apollo Tyres, Perambra Plant
PAGE 15
Future plan
Apollo is one of the largest corporate investors in developing sporting talent through its Mission
2018, which is focused on nurturing and training youngsters in the sport of tennis to enable an
Indian to win a Singles Grand Slam Championship by the year 2018
ORGANIZATIONAL GOALS
Family Focus.
Hygienic Factors.
Revenue growth.
Employee satisfaction.
PAGE 16
PLANTS
MISSION
A journey called agile is to be an us$6 billion Company by the year 2016.
AGILE: Apollo Growth Innovation Learning Excellence
QUALITY
SUSTAINABILITY
INNOVATION
PAGE 17
COMMON CULTURE
VISION
A significant player in the global tyre industry and a brand of choice, providing customer
delight and continuously enhancing stakeholder value.
Customer first
Business ethics
Empowerment
Communicate openly
One family
PAGE 18
MANAGEMENT BOARD
Onkar S Kanwar
Neeraj Kanwar
Robert Steinmetz
P K Mohamed
Satish Sharma
Luis C Ceneviz
PAGE 19
Riaz Haffejee
Sunam Sarkar
Tapan Mitra
Gaurav Kumar
Group Head
Corporate Strategy & Finance
Apollo Tyres Ltd
Peter Snel
P N Wahal
Company Secretary
Apollo Tyres Ltd
BOARD OF DIRECTORS
Onkar S Kanwar
Neeraj Kanwar
M R B Punja
Former Chairman
Industrial Development Bank of India
Dr S Narayan
Former Chairman
State Bank of India
PAGE 20
Chief of International
Business Continental AG
Shardul S Shroff
Senior Partner
Amarchand & Mangaldas
& Suresh A Shroff & Co
Nimesh N Kampani
Chairman
JM Financial Group
U S Oberoi Chief
Corporate Affairs
Apollo Tyres Ltd
Sunam Sarkar
V P Joy
Secretary (Finance)
Government of Kerala
K Jacob Thomas
Managing Director
Vaniamapara Rubber Co. Ltd
K S Srinivas
Special Secretary
Industries (IP) Department
Government of Kerala
Vikram S Mehta
Former Chairman
Shell Group of Companies
P N Wahal
Company Secretary
Apollo Tyres Ltd
1972
1974
The company was taken over by Dr. Raunaq Singh and his associates.
PAGE 21
1976
1977
1982
1991
1995
1996
2000
2000
2003
2004
2004
2005
2005
2006
2006
2006
2006
2006
2006
2007
2007
2007
2008
PAGE 22
2010
2011
2011
Apollo Tyres makes Dubai a hub for its Middle East operations.
2011
Tamil Nadu government and the tyre manufacturer Apollo has signed a
MoU relating to investments of Rs 21,000 crore as part of Apollos
Greenfield projects.
2012
2012
2013
Continuous expansion.
First Tyre Company in India to obtain ISO9001 certification for all its operations.
First Company to introduce packaging for tubes, two wheeler Tyres and Car
Tyres.
PAGE 23
GOLDEN ACHIEVEMENTS
Apollo Tyres Ltd Perambra unit was ranked the first among large scale
industries
Apollo Tyres Ltd received the pollution control award by the central
government during the year 2003-2004.
CERTIFICATIONS
ECE Certification
PRODUCT PROFILE
1. LIGHT COMMERCIAL VEHICLE
Overload Technology
Loadstar Super.
Milestar
PAGE 24
Amar Delux
Amar Gold Rib
XT9
XT9 Gold(lug)
Duramile (radial)
Regular Mileage
Champion
2. TRUCK
Overload Technology
Loadstar Super.
Kaizen 50L.
XT7.
XT7 Gold.
XT7 Haulug.
Amar Delux.
Amar.
Commando.
Kaizen 36L
Kaizen 77R
XT9
XT9 Gold
Amar Gold
Kaizen XTD
PAGE 25
Champion
Champion Gold
Champion DXL
Amar AT Rib
Kaizen 27L
Amazer XL
Acelere
Hawks
Amar
Amazer XL
Quantum
Amar
Amazer XL
Storm
Hawks
Armour
Panther
Gripper Maha Trooper
PAGE 26
Cultivation
Sarpanch
Haulage
Power Haul
Multipurpose
Hunter
Table 8: Product profile - Farm
1976
Land Area
97 Acres
Building Area
69,500 SQ.MTS
Present Capacity
320 MT/Day
Product Range
Truck
Light Truck
Rear Tractor
Passengers
Farm Radial
PAGE 27
Fuel efficiency.
PAGE 28
PAGE 29
Products for various applications, across geographies ending with a delighted customer.
Sustainability
As an organisation, Apollo Tyres is committed towards creating values for its stakeholder. And
the crucial link here is building a sustainable business, driven by strategic growth and
responsible actions.
Apollo Tyres believes that to truly move up the value chain, it is critical to use fewer natural
resources to produce more. For a growing organisation, with a long-term focus and commitment,
it is critical to safeguard resources for the future even as it creates value today. At Apollo,
emphasis is laid on using natural resources cautiously and with care.
In 2011, the company published its 1st Sustainability Report as per Global Reporting Initiative
Version 3. The disclosures and identified gaps have further enabled the company to better define
and evolve its internal systems relating to environmental and social aspects. Bulk of this work
pertains to energy, water, health and safety issues across operations.
The companys systems and processes have made it possible for it to report at Level B and the
company is positive about achieving Level A across its operations in the next 2 years.
Human capital
Labour
No of people
Management staff
213
Permanent staff
1924
Workmen trainee
113
Contract men
453
Total
2703
Table 10: Human Capital
PAGE 30
Goal of apollo
Employee safety
Family Focus
Hygienic Factor
Employee satisfaction
Customer delight
Revenue growth
Quality pledge
We the people of Apollo tyres ltd will create an enterprise committed to quality. It is our plicy
to design, manufacture and services our products to provide the level of quality and valve that
meet every customers need. We will aim to generate customer enthusiasm through continuous
improvement in our product and services.
PAGE 31
CHAPTER 5
ORGANIZATIONAL STRUCTURE
PAGE 32
ORGANIZATIONAL STRUCTURE
Apollo Tyres Ltd. is following the functional organization structure. In this various
organizational activities are classified and divided according to functions like Production,
Marketing, Human Resources, Finance, Purchase, Engineering stores, IED, Production planning
and control, Quality assurance, Utility, Safety, FGS and RMS. These classified departments are
put under the charge of individual specialists to deal with the particular department.
This structure depends entirely on the organizations objectives and strategy chosen to achieve
them. A good organizational structure will help the organization to increase efficiency in its
operations and it will also help in the optimum utilization of available resources. The line of
command will be much clear in this type of organizational structure. Individuals specialize and
departments tend to develop common knowledge across the group. The disadvantages to this
structure are poor communication across groups and slow response to changes in the
environment.
PAGE 33
ORGANIZATIONAL CHART
Chairman
Vice chairman
plant
Head of
Manufacturing
Head of
Commercial
Head of
Quality
Head of
Safety
Head of HR
Divisional
head of HR
Divisional
head of
production
Divisional
head of
technology
Divisional
head of
engineering
Manager
Employee
engagement
Manager
Employee
recruitment
Manager
Employee
relations
PAGE 34
CHAPTER 6
FUNCTIONAL DEPARTMENTS
PAGE 35
FUNCTIONAL DEPARTMENT
There is a high degree of depart mentation in Apollo Tyres Ltd. The depart mentation
helps in specialization of work in each field. It helps in better planning and better
concentration in the particular work handled by a particular department. The various
departments in Apollo Tyres are as follows:
1. Production
2. Marketing
3. Human Resources
4. Finance
5. Purchase
6. Engineering stores
7. IED
8. Production Planning & Control
9. Quality Assurance
10. Utility
11. Safety
12. FGS
13. RMS
PAGE 36
The production department forms the backbone of any manufacturing organization. Apollo
Tyres Ltd has adapted the latest technology in various areas of operations to ensure improved
production. The production target is fixed as per the directions of the head office. At present the
daily production target of Apollo Tyres is 86 metric tones per day. Production department runs
three shifts for workmen. Every month end production intends are obtained for marketing
departments of ATL from Delhi stating how much tyres are to be produced during the next
month and which type of tyres are to be produced. ATL primarily focus on bias production and
frame radial production.
Production department is responsible for maintaining quality of production and optimum level of
production. The production planning starts with the receipt of production ticket from Delhi
which contains the quality required for operation. The requirement is then processed in the
planning department and then converted into equivalent tyre requirements. This is then checked
for feasibility depending on the moulds available for production, and then the production
schedule is finalized.
PAGE 37
DIV HEAD-D
Zone 1
Zone 2
MANAGER-M
MANAGERBIAS/
CALENDARING
EXECUTIVES
GROUP
MANAGER
MANAGER
MIXING/
EXTRAUSION/
BEAD
MANAGERTYRE
BUILDING
EXECUTIVES
EXECUTIVES
MANAGERFINISHING/
CURING
EXECUTIVES
PAGE 38
PAGE 39
4. Bias cutting
For assembling a tyre several plies are used. E.g.: a 16 PR nylon truck tyre uses 8 plies
and 2 breakers. Each ply is cut from the coated fabric rolls prepared by calendaring. The process
of ply cutting is accomplished in a bias cutter. Each ply is cut in a definite width and angle and
wound in liners. The cut plies then go to roll calendar for squeegee application. Compounds like
chafer and flipper are also made. These are further slit using a slitter into smaller widths and
wound into rolls. Chafer rolls from slitter go to the tyre building and flipper goes into the bead
flipping.
5. Squeegee Calendering / Squeegee Application
Squeegee calendaring is the process of making thin sheet of rubber compounds usually by
using a squeegee roll calendaring. It is wound in liners and the squeegee rolls are sent to tyre
building for assembling. The ply squeegee application on to the cut plies is accomplished using
squeegee application tables.
6. Extrusion
Here components of the tyre like tread and sidewall are prepared from rubber components
using extruder. Extrusion is the process by which rubber compound is given a definite
continuous shape. It is then cooled and cut to required length, which is used in the assembling of
the tyre at tyre building. Extruders are distinguished by the diameter of their screws and are a
single or dual type.
a) Single Extruder
Rubber compounds after being broken down and warmed up on Mills, are fed in to the
screw of the extruders from which with the help of dies, and produces a green shape of
PAGE 40
b) Dual Extruder
Two separate set of mills on which two different types of compounds are broken down and
heated and fed separately to two different screws. The two compounds after extrusion are
extruded together in a common head and with the help of performer and final dies, emerge in to a
pre-determined shape. The advantage of dual extruder is that two rubber compounds of
completely different composition can be extruded.
7. Bead Preparation
The bead wire is coated with rubber compound in a T-head extruder and wound into coils of
required dimension. The coiled beads are further applied with rubber and calendered fabric strips
of appropriate dimensions. Bead preparation consists of 3 stages:
Bead winding
Bead filtering
Bead flipping
Bead winding
Here several wires are passed through the head of a bead extruder and coated with rubber
compound. The coated tape so formed is wound into bundles of definite turns and strands and of
definite diameter. The process is accomplished using a machine called the bead winding
machine.
PAGE 41
8. Tyre Building
Tyre building is the process of assembling the various compounds into the semi finished
products called green tyre. This is done in a tyre building machine. The component like drum
squeegee, which are plies with squeegee applied on it are assembled from the end and locked in
using the ply ends. Breaker and chafer are applied next. Finally the tread and sidewalls are
applied. The assembling (green tyre) is taken out after collapsing the drum.
9. Tyre Curing
The green tyre is inspected and then applied with a lubricant on the inside and blemish paint
on the outside wall area. The green tyre is also used to facilitate easy removal of any trapped air
during the final shaping and moulding operation. The green tyre is shaped and given final
contour using the appropriate tyre moulds by the application of pressure and temperature. The
rubber compound gets vulcanized during curing and become tough and elastic and provides all
the decided property upon the size of the tyre varying from 18 minute for a passenger car tyre
to one hour for truck tyres.
PAGE 42
PAGE 43
Board of Director
General Manager
Marketing Manager
Sales Manager
Sales Representative
Figure 8: Structure of Marketing Department
The success of the company is in its products , people & distribution network. The
head office is situated at new Delhi that controls the entire marketing activity. The robust
distribution was
by their
dealers
availability of the product through industry leading spread and depth across the country.
On the product front the company launched the premium Gold the range in the
truck
and bus
segment
passenger car
of greater
PAGE 44
with partnership forged with reliance petroleum , ONGC, OVAL , and TATA motors to
market the range of Apollo Tyres through their networks further improving their ability.
Sustained growth of ATL in the recent period of time is the result of planned and
focused marketing initiatives. There is no separate department for marketing in Kalamassery
plant and in Perambra.. ATL has three corporate offices in Kerala (Cochin (Main office),
Trivandrum, and Calicut which does the market functions for company.
FUNCTIONS
1. To fix a reasonable price for the product.
2. To satisfy customers by providing high quality products.
3. Carry out promotional activities.
4. To identify new segments.
5. To carry out market research to collect information regarding price variations, export and
analyzing the current market situations.
SEGMENTATION
ATL market segmentation is use based segmentation. ATL segregate the market as
commercial and personal. Commercial constitutes light trucks, heavy trucks and jeeps, which
constitutes 90 per cent of the entire tyre market of India. The rest constitutes the personal
transportation, primarily cars driven for personal reasons. In fact, even taxis come under the
commercial segment.
PAGE 45
POSITIONING
ATL has created an image in the minds of the customers regarding the quality of their
product and its past performance. Constant process is done at every stage of manufacture and the
company performance. ATL positions its products according to the product variety.
PRICING
The price is fixed depending on the variation of the price of main raw materials and based
on the market situations.
RETAILING
Retail selling of ATL's products is through dealers. Launching of customer acquisition and
retention programmes has helped in imparting knowledge to the dealers and enhancing dealer
network. This resulted in increase in goodwill and brand equity of ATL.
ADVERTISING STRATEGY
ATL use a mix of media for the target audience. ATL advertise less for commercial
vehicles because it is more face-to-face and interactive. For car radials, they use a mix of media
PAGE 46
PAGE 47
HEAD
DIV HEAD
TIME
OFFICE
TRAINING AND
PEOPLE
GENERALI
EXECUTIVES
ADMIN
ST - HR
Figure 6: Structure of HR Department
PAGE 48
Mission of HR Department
1. To create HR policies and process which are employee friendly
2. To build a culture which is warm forthcoming and professional with a sense
of ownership and pride.
3. To encourage innovative thinking
4. To encourage transparency and teamwork
5. To develop leaders at all level with general management skills
6. To create a learning organization
7. To develop competencies and skill through training and development
8. To constantly raise levels of employee productivity
9. To create HR brand
10. To work towards attaining and sustaining the best employer status
Major Functions of HR Department
a) Recruitment
b) Training
c) Industrial Relations
d) Welfare
e) Time office
f) Security
[A] Recruitment
Recruitment is done through advertisement and a good opportunity is given to the child of
worker. This increases family loyalty towards the company. They are called for the interview and
the chief executive take final decision.
PAGE 49
1. Management Staff
Technical- B.Tech, Graduate Engineer Trainee.
Non-Technical- CA/ICWA/MSW/MBA/MA (PM); Executive Trainee
After training, they are absorbed as officer.
Criteria include
a) Consistency in academic performance
b) Group Discussion
c) Personal interview
Induction Plan
Workers
[B] Training
The organization provides training for both managers and workers. Training programme for
managers consist of both internal and external programme. The workers have internal
programmes.
DE PAUL INSTITUTE OF SCIENCE AND TECHNOLOGY (DiST), ANGAMALY
PAGE 50
2. for workers
e. Systems
f. Technical aspects
g. Work culture
h. Specialized training for trade union
The amount spend by the company for the training of their employees for a period
of one year is
Development Efforts
VIJAYIBHAVA 1 To achieve a turnover of Rs.0.2400 crore for the fiscal year of 200304.
PAGE 51
Training programmes
assoc. Managers
and managers.
With a view to develop multi skill among engineering trainees ,they are given
exposure to engineering, production & technical fields.
Jyothirgamaya:- On each working day about 10 of the employees are selected for training
in a classroom atmosphere, about the productivity , quality & scrap reduction. The
employees are provided training specially about the company and about the tyre industry
in
industrial field. Its objective is to give training for all the employees in the unit within a
period of 1 year.
Six Sigma: [introduced on April 16Th 2007] Six Sigma is basically meant for increasing
production and for running the organization profitably. It is for finding out areas where
unneeded expenses are occurring and for reducing it using scientific techniques with a
disciplinary approach. A six sigma organization means the defects in the production of
10 lakh parts must be below 3.34%. When the employees become aware of six sigma and
they come into contact with the machineries used for this, then the
organization will
achieve an unexpected growth.. This helps to find out the defects in production and for finding
out remedy. It also helps to understand the fact that the consumers are the owners and
also to produce quality products.
PAGE 52
A good industrial relation exists in the organization. The management and the employees
jointly find the solutions for the problems. There exists a well relation between employer and
employees. There are four main trade unions recognized by the company are:
i.
ii.
iii.
iv.
The trade unions which get at least 20% of vote of total strength are recognized by the
management. The management has introduced a long-term settlement (LTS) plan, which is
nothing but a collective bargaining agreement. The decisions are taken jointly by the trade union
and the management. Also a part of the HR initiative employee involving them in productivity
relied issues such as quality circles and professional circle, a social gathering such as factory day
and other celebrations encourage participation. Among the four unions the recognized unions are
ATWM & ATEU.
PAGE 53
All employees drawing a salary below Rs.6000 are covered under group accidental policy and
mediclaim policy.
Taking the health aspects of employees those who in the night shift get 200ml of milk packets
for every night shift worked. It is given to retain their lost energy in the night shifts as it is
motivation to the employees to come for night shifts.
Apart from its soaps is distributed for the cleanliness of employees. Each worker gets soap fully
off cost and those who work in the production units 3 in number per month.
Management staff
Group hospitalization scheme
Group personal accident policy
2 wheeler scheme-40% borne of the company
Car scheme - Asst. manager and above - 40% borne of company
Super annuation - Asst. manager and above
Employee self-development scheme.
Workers
Group personal accident policy
Mediclaim
Housing loan interest subsidy-50%
2 wheeler loan interest subsidy -70%
Financial assistance co-operative society
Periodically medical checkup
Subsidized canteen
Subsidized bus service
Tyre scheme
DE PAUL INSTITUTE OF SCIENCE AND TECHNOLOGY (DiST), ANGAMALY
PAGE 54
[F] Security
The security is concerned with the physical movement of men and material. Security
staff headed by the chief security officer works at all the shifts. To facilitate the security
measures, single point entry is adopted to control visitors. For materials, separate gate passes are
issued.
PAGE 55
Job description
- Be
responsible for security of men, machinery, finished goods, raw materials, process
materials, highly sophisticated equipment etc. Their inward outward movement is monitored
as per the system prevailing.
-Developments of security staffs in line with the requirement of the organization & to
keep a high morale of the forces.
Monitor and control all inward and outward movement of vehicles ,material and
personal.
Maintain the data base of all indirect workforce including contract workmen.
Ensure high degree of liaison with police, local administration , fire force and
government authorities.
Keep strict vigilance , gather and assimilate intelligence for smooth functioning of
the plant in an unionized environment.
PAGE 56
DIVISIONAL - HEAD
MANAGER
ASSOCIATE
MANAGER
EXECUTIVES
Figure 7: Structure of Finance Department
The corporate office situated at Gurgaon does most of the accounting and taxation jobs of
ATL. At Perambra plant there is a separate accounting and finance department. This department
deals with salary, wages and costing. Excise duty of the raw materials also comes under this
department.
Sales from operations during the financial year ended March 31, 2007 amounted to an all
time high of Rs. 4,733 crore as against Rs.3, 002.12 crore during the previous year, recording a
growth.
The strong performance of Apollo is a combination of high growth in sales along with
enhanced operations management, better working capital management, aggressive marketing and
overall cost reduction measures adopted by the Company.
OBJECTIVES
To arrange adequate funds for business
DE PAUL INSTITUTE OF SCIENCE AND TECHNOLOGY (DiST), ANGAMALY
PAGE 57
FUNCTIONS
Financial forecasting and planning
To advice top management on financial matters and suggest various alternative solution
Coordination and control
Help in tax administration and tax planning
Preparation of audit report
Storage of raw materials, finished and engineering goods
MIS Reporting
Finance is the back bone of every organization. Finance manager plays an important role at the
same time he has also responsibilities. The role of finance manager is to prepare the accounts and
studying of all the financial transaction of the company and have the advisory function in the
financial and the establishment matters. The fundamental decision marketing areas of financial
manager are capitalization decision, investment decision and financing decision.
PAGE 58
The main function of the purchase department is to provide right material at right
time in right place at right quantity. It is concerned with the purchase of indigenous and imported
materials. This department is headed by a senior manager and under him there are a number of
officers and staff.
The main items of purchases are:
1. Engineering spares
2. Consumables
3. Furnace Oil
4. Diesel
5. Chemicals
6. Lubricants
7. Other raw materials
The purchase may be corporate purchase or plant purchase. Under corporate purchase the
raw materials are purchased after considering what the market requires for the month. Under
plant purchases, purchase may be of stock item or non stock item. Stock items are purchased for
regular use. They are having material codes. They are purchased after considering the recorder
level, recorder quantity, lead time etc. There is no regular purchase for the non stock item.
Different department have to prepare purchase requisitions. The items purchased are engineering
items, oils and lubricants, local raw materials, import of spares etc.
Purchasing Records
PAGE 59
3. Blue print and specification record drawing: - Many items purchased by blueprint
specification are kept in separate files with index showing their location and where the
copies have been sent. Thus if repeat order to old supplier is to be made, it is not
necessary to send new copies of the specification.
4. Contract file:- certain goods may be bought under term contract. In that case Purchase
department have to maintain a record of such contract.
Purchasing department is directly under the control of purchase manager. This department is
doing all the purchase for production and engineering department. It is very difficult to provide
the right material at the right time. But using the SAP system, work of this department is much
easier.
PAGE 60
Engineering Stores department focus on procuring and storing the goods other than raw
materials.
Engineering goods stores is responsible for storing the necessary spare parts
components required for smooth functioning of the plant on receipt of indent from production
department. The inventory management technique used is VED analysis. Another system
followed in engineering stores is VMI Ventor Maintain Inventory. In this system the vendor
supply the materials in large quantities and payment is made for consumed items. Engineering
stores takes care of following items.
Stock items
Stock items are procured and stocked here. While procuring a Goods receipt is generated
and then the goods are taken for quality check. Stock items are broadly classified into
following:
Insurance spares
General spares
Consumables
Lubricants
Chemicals
PAGE 61
GROUP
MANAGER
EXECUTIVE - IE
EXECUTIVE SYSTEM
Figure8: Structure of Engineering Department
Conduct work studies, improvement studies in varies equipment and fixation of norms.
Studying plant layout and material handling systems and suggesting for improvements.
Conduct daily audit on manpower, productivity, lost time, scrap details, absenteeism,
overtime etc.
CORE JOBS
Equipment Layout Planning
Work Measurement-Time Study/Work Sampling
DE PAUL INSTITUTE OF SCIENCE AND TECHNOLOGY (DiST), ANGAMALY
PAGE 62
Equipment
Operator
Operator movement
Maintenance
Work Sampling
As most of the operations are performed by Crew, So sometimes work sampling is also done to
check the workload of the crew. The study is done by taking the readings at random intervals or
on fixed intervals.
PAGE 63
Capacity Planning
Based upon Agreed Production Norms and Utilization, Equipment capacity is calculated for all
work centers except for Curing. In case of curing, Actual cycle time and weight of tyres are
taken along with utilization.
Manpower Rationalization
Manpower is classified as MEP Manpower, Blue collar and Grey collar
Blue Collar Crew that is actually working on the M/C and Engg. Permanent workmen. Blue
collar is further classified as A, B, C, D grades based upon skillness level required.
Grey Collar Manpower used for all outsourced activities namely Production (material
Movement), Engineering, Plant Housekeeping, Commercial (RMS/FGS Loading, Unloading
activities), HR and Admin, Staff Services and Systems.
MEP Manpower All management staff other than above categories.
PAGE 64
PAGE 65
Group Manager
Manager
Associate Manager
Production planning and control department is responsible for fixing monthly production
levels, meeting and production targets, scheduling machines as per the requirements, and the
preparation of raw material requirements based on monthly production ticket. The resources in
terms of machines, men, material etc. used in a tyre plant run into several crores and it is
necessary to make best possible use of these resources to achieve maximum economy in
production costs. The main objective of
Prepare, adjust and issue different operations based on the programs, inventories,
programs of work and specifications.
Take physical inventories from the stores of finished goods and raw material.
PAGE 66
DIVISIONAL HEAD
MANAGER
ASSOCIATE
MANAGER
EXECUTIVES
Figure 10: Structure of Quality Assurance Department
Quality is the totality of characteristic of an entity that bears on its ability to satisfy, stated and
implied needs. Quality is referred to as 'fitness for use' or 'fitness for purpose' or 'customer
satisfaction' or 'conformance to requirements'.
QA is the well-planned and systematic activities implemented within the quality system
and demonstrated as needed to provide adequate confidence that an entity will fulfill
requirements for quality.
Quality Assurance
Lab
PAGE 67
PAGE 68
PAGE 69
UNIT HEAD
MANAGER
EXECUTIVES
Safety department focus on safe operation of the plant and related machineries. Apollo
follows Kerala factory rule for the safety of resources and machineries. I.e. a safety officer will
be assigned for thousand people (in the ratio 1:1000). Apollo, perambra employs two safety
officers who reports to unit head regarding their work. Safety operations are broadly classified
into two.
Routine
Non Routine
Routine: Routine operation basically consists of work carried out on daily basis. Tyre
manufacture for e.g., is carried out in plant on daily basis. Apollo follows SOP (Safe Operation
Procedures) and HIRA (Hazard Identification and risk assessment) for the safety operation of
plant. It is basically followed on the basis of Risk Assessment Matrix (RAM) which is the
maintained as a standard reference for the Utility / safety department pertaining to Routine Plant
operations. RAM decides which operations to be stopped on basis of severity of the accident
happened.
DE PAUL INSTITUTE OF SCIENCE AND TECHNOLOGY (DiST), ANGAMALY
PAGE 70
Non Routine: Non Routine Operation basically consists of activities which are carried out once
in a while. Non routine operation consists of maintenance work, Welding, Plumbing, Excavation
and other electrical works. As these operations are not on regular basis, a standard procedure like
RAM cannot be followed. Hence these procedures are carried out on basis of work permits.
Work permit consist a checklist and signed by Initiator, Custodian and Issuer. Initiator is the
person who request for any non-routine work like maintenance to be done in any area which is
headed by the custodian. Issuer is the person who heads the maintenance work in any specific
area. The responsibility of any accidents occurring belongs to initiator.
PAGE 71
HEAD MANUFACTURING
GROUP MANAGER
MANAGER
EXECUTIVE
All finished goods after final inspection are kept at the transferring area in each shift. The
staff of final finishing will prepare a finished goods transfer-note in triplicate which will be
countersigned by the staff of FGS/TTF After verification, finished goods transfer-note will be
serially numbered and have the following details.
Material code
Description
Quantity
The original copy of the transfer-note will be issued to central excise wing after
entering the details in stock statement, duplicate will be given back to production as their file
copy and triplicate will be issued to Production planning. One staff each from production and
PAGE 72
FGS/TTF will separately verify the quantity, size, ply rating of the finished goods and compare
against the entry in the transfer-note.
-Finished goods store is fully covered and protected from sunlight and rainwater. The
floor is cleaned to remove dust. Proper passage is left for access for periodical inventory.
-All the tyres to be stored are rolled from transferring area to stores and stored size-wise.
Each
stock will be maximum of ten height for truck tyres and 12 for low truck /
passenger tyres. All tubes are packed in bags and brought to the storage area directly by
tube production department. Flaps are bundled in ten and transferred using trollies.
-All seconds tyres stored in FGS are identified using a white band and blem tyres
wing a red band.
- A stock statement is made as of the closing of the day. This is made based on the
receipt and dispatch. After preparing the stock statement the finished goods
transfer note is
PAGE 73
- Truck OE tyres if not despatched within 24 hrs should be stocked in the warehouse. Bottom
most tyres will be stocked with tube valve facing upwards and for others with tube
valve facing downwards , same practice to be followed while loading the tyres in truck
also.
- Incase of high inventory levels when it is not possible to store all tyres in the
godown , temporary sheds / tarpaulin sheds are resorted for storing of tyres . At such
times starting norms may not be ad heard to and tyres may be kept in places other than
the designed area.
Store-man will keep the loads as per the load slip at the loading bay. Staff of FGS, TTF, Security
and representative of transporter will check the load, kept separately for size, ply and quantity.
PAGE 74
PAGE 75
their requirements.
Purpose:- To supply right material in right time to produce right quality product
without any interruption.
Scope :- Receipt , handling ,storage & issue of raw materials & to the customer.
PAGE 76
The security inspector at main gate shall verify all documents pertaining to the
consignments brought to the factory before allowing entry in to factory premises and note the
following details. Serial no, suppliers name, description of item, challan quantity, challan no and
date or LR no and date, truck reg. no, date and time of arrival, date and time of departure.
Security shall inform raw materials stores about the arrival of the vehicles at the gate. The
security guard and a representative from RMS shall record weighment of trucks jointly. The
Weighment slip shall indicate the following:
Slip no, time and date of receipt, suppliers name, gross weight with materials, Challan no
and date. After recording the above details in the computerized weighing balance the vehicles
shall be directed to the respective unloading bay. In ATL weighment will be done in a
PAGE 77
Both security and RMS personnel shall sign on the computerized weighment slip. One copy of
the weighment slip will be filed in RMS along with concerned delivery challan and the second
copy will be returned by security department.
The receipt in charge shall verify the documents to ascertain the no of packages,
description of materials code and weight of the material. If any discrepancy is found the same
shall be orally reported to the officer concerned before unloading. He in turn will take decision
suitably. The dispatch documents include: Delivery challan /invoice, sales tax papers, packing
list and duplicate copy for transporter of invoice for availing MODVAT credit. In case of non
receipt of any of the above documents the consignment will not be unloaded unless and
otherwise instructed by the competent authorities after compliance of all conditions stated above,
the materials will be unloaded as instructed by the receipt in charge and lead to the respective
area.
All the incoming materials except the materials coming in tankers will be unloaded
manually or with the help of forklift as instructed by the receipt in charge. Caged pallets or
platform pallets are used for storing of materials so far as possible to facilitate easy handling at
the time of issue. Each caged pallets will carry a maximum of 1500 kg of materials. Caged
pallets will be stacked one over the other.
PRESERVATION
Carbon black and chemicals are stored in the 2 nd floor, natural rubber /SBR; wax etc in
the 1st floor and fabric, bead wire, latex etc in the ground floor. In case of space constraints in
DE PAUL INSTITUTE OF SCIENCE AND TECHNOLOGY (DiST), ANGAMALY
PAGE 78
MATERIAL LIST.
Indirect Materials
1. Solvent Naphtha
2. Servo rubber
3. Inner Lube
4. Bladder Material
5. Poly Bag/ Poly Underlay
6. Liners
PAGE 79
CHAPTER 7
SWOT ANALYSIS
PAGE 80
SWOT ANALYSIS
7.1 STRENGTHS
Continued Market Leadership in the dominant industry segment i.e. Truck / Bus
tyres.
Global presence with acquisition of Dunlop Tyres International (Pty) Ltd in South
Africa.
Robust Operation Center for managing IT operations across 140 Locations supported
by ERP / Dealer Portal / Information Systems Security Control etc.
Stable management
7.2 WEAKNESSES
PAGE 81
Absentees of employees
7.3 OPPORTUNITIES
Leadership position in the commercial vehicle segment will enable the Company to
leverage new and related business opportunities.
Access to global sources for raw materials at competitive prices due to economies of
scale.
PAGE 82
Lock outs
PAGE 83
CHAPTER 8
FINDINGS AND SUGGESTIONS
PAGE 84
ATL is the first tyre company to receive ISO 9001 certification and one the few
tyre manufactures to obtain QS 9000 certification.
Trade unions play vital role as bargaining agents. The management is sometimes
forced to accept demands made by the unions.
The products of the company are known for its high quality standards.
The workers are not completely satisfied with the wages they are paid.
Safety posters and slogans are exhibited inside the plant and various safety
awareness programs are also conducted.
The factory premises are kept clean which comes under a dedicated system known
as Environment Management System (EMS)
Factory is located at an ideal location that allows easy access to land, air and sea
transportation.
All departments at the plant are being connected through SAP which gives real
time connectivity with each other.
All the plants of Apollo tyre group are being connected with the headquarters
through WAN and SAP which critical decision making easy.
PAGE 85
8.2 SUGGESTIONS
Each should have an in house marketing department that can take care of the local
fluctuations in market.
PAGE 86
CHAPTER 9
CONCLUSION
PAGE 87
CONCLUSION
Apollo tyres Ltd is the 7th fastest growing tyre company in the world. A fair wage
system prevails in ATL. The company provides better working condition for employees. Proper
training to workers and efficiency of the workers must be increase to increase production. The
industrial relation with the local union is fairly good. The company is facing a cut throat
competition in Indian market and international market. Despite of all these challengers Apollo
has done well in the past and with a booming economy and a focused progressive leadership at
the top. The employees enjoy working as a team and with customers to create superior and
distinct production and services. Apollo is focused on fast and flexible, never ending
improvement in order to create an enterprise that is dynamic, ever expanding and profitable and
in constant pursuit of customer satisfaction is Apollo policy to design, manufacture and service
our products to provide the level of quality and value that meets every customer needs.
Apollo stands first in the production of truck tyres. In spite of recession the company
is still making sufficient profit. There are good working conditions and industrial harmony
among the employees. Proper and adequate training is given to the employees, which leads to
higher productivity,. The company is facing cutthroat competition from Indian market as well as
foreign market. In spite of fierce competition and local problems the Perambra plant thrives and
move forward to its target of 310 MT/day and thereby achieve their 9000 crore goal by the end
of 2010. Apollo tyres boast a vibrant and dynamic, profession and nonhierarchical culture.
Transparency and communication are cornerstones of corporate practice, across levels, to ensure
that each individual employee is aligned with the goals and aspiration of the company. At Apollo
Tyres the three corporate pillars of People, Quality and Technology underpin all activities and
processes. These are the companys stated areas of corporate excellence, in its journey towards
becoming a best in class global manufacturer. Apollo Tyres, they are always looking out for new
opportunities. If opportunities do not come their way, they go ahead and create opportunities.
Over the years they have created opportunities for growth, opportunities for success and also
opportunities for a bright future.
PAGE 88
BIBLIOGRAPHY
PAGE 89
BIBLIOGRAPHY
www.apollotyres.com
PAGE 90