ORGANIZATION STUDY REPORT ON

G.I AUTO PVT LTD.

An Organization Study Report submitted to Mahatma Gandhi University
for the partial fulfillment of the Award of Master of Business Administration

Submitted By
Ms. Ansu Thomas
(Reg No: 70404)

Under the Supervision of

Mr. Subin Thomas
Faculty MBA

GIRIDEEPAM INSTITUTE OF ADVANCED LEARNING

VADAVATHOOR, KOTTAYAM

2015 - 2016

2015 - 2016
GIRIDEEPAM INSTITUTE OF ADVANCED LEARNING
VADAVATHOOR, KOTTAYAM

CERTIFICATE
This is to certify that the project report titled Organization Study at G I Auto Pvt Ltd,
Bangalore is a bonafide record of the work done by Ms. Ansu Thomas as part of the Project
Work during the Second Semester, at G I Auto Pvt Ltdin partial fulfilment of the requirements
for the award of the Degree of Master of Business Administration of the Mahatma Gandhi
University.

Faculty Guide

Head of the Department

DECLARATION
I do hereby that this report is a bonafide record of the organization study done by me under
the supervision of Mr. Subin Thomas, Girideepam Institute of Advanced Learning and
Abhilash T, Production Coordinator, G I Auto Pvt Ltd, Bangalore during the academic year
2015-2016, in partial fulfillment of the requirements for the award of the Degree of Masters
Programme in Business Administration of Girideepam Institute of Advanced Learning,
Mahatma Gandhi University, Kottayam.
This work has not been unde taken or submitted elsewhere in connection with any other
academic course.

Place:
Date:

ANSU THOMAS

ACKNOWLEDGEMENT
I wish to take this opportunity to express my sincere expression of gratitude to each and
everyone who helped me in the completion of this work.
First of all I thank God almighty for giving me all the grace and assistance throughout my
work.
I extend my sincere gratitude to Director, Rev. Dr. Varghese Kaipanaduka OIC and Principal
Dr. Abraham Sebastian Aikara, Girideepam Institute of Advanced Learning, Kottayam, for
gave me an opportunity to conduct an Organizational Study.
I am very glad to express my gratitude to Mr. Pradeep S Head of the Department, Girideepam
Institute of Advanced Learning, Kottayam, for his timely help all throughout my study.
I would like to extend my gratitude to Mr. Subin Thomas, Assistant Professor, Girideepam
Institute of Advanced Learning, Kottayam, for his valuable suggestions, advice and
encouragement throughout the course of this work.
I would like to express my sincere thanks and heartfelt to Mr.Paneer Selvam Management
Representative, Mr. Dineshachari HR Manager and my organization guide Mr.Abhilash T,
Production Coordinator for having given me the opportunity to complete my organizational
study in their esteemed organization. With immense pleasure I express my heartfelt gratitude
to the Management and Staffs of various Departments of G I Auto Pvt Ltd for their valuable
guidance extended to me for the sucessful accomplishment of this organizational study.
I also extend my sincere gratitude to all the other faculty members and non teaching faculty
for all their support in the completion of this study. Finally I thank my family members and
friends for their support and encouragement throughout the study.

ANSU THOMAS

CONTENTS
CHAPTER NO.
CHAPTER 1

CHAPTER 2

CHAPTER 3

CHAPTER 4

CHAPTER 5
CHAPTER6
CHAPTER 7

TITLE
INTRODUCTION
1.1 INTRODUCTION
1.2 OBJECTIVES OF THE STUDY
1.3 METHODOLOGY OF THE STUDY
INDUSTRY PROFILE
2.1 INDIAN AUTO INDUSTRY
2.2 AUTO COMPONENT INDUSTRY
2.3 CLASSIFICATION AND STRUCTURE
2.4 SUPPLY SIDE SCENARIO
2.5 INDUSTRY EVOLUTION AND GROWTH
2.6 FUTURE TRENDS
2.7 CHALLENGES
COMPANY PROFILE
3.1 INTRODUCTION
3.2 NATURE F BUSINESS CARRIED
3.3 VISION
3.4 MISSION
3.5 VALUES
3.6 QUALITY POLICY
3.7 PRODUCT PROFILE
3.8 CUSTOMERS
3.9 G I TEAM
3.10 AREA OF OPERATION
3.11 OWNERSHIP PATTERN
3.12 COMPETITORS INFORMATION
3.13 INFRASTRUCTURE FACILITY
3.14 OTHER FACILITY PROVIDED
3.15 ACHIEVEMENTS
FUNCTIONAL DEPARTMENTS
4.1 FNANCE DEPARTMENT
4.2 MARKETING DEPARTMENT
4.3 HUMAN RESOURCE DEPARTMENT
4.4 PRODUCTION DEPARTMENT
4.5 IT & SEVICE DEPARTMENT
SWOT ANALYSIS
LIMITATION OF STUDY
CONCLUSION
FINDINGS
LEARNING EXPERIENCE
SUGGESTIONS ABD RECOMMENDATIONS
CONCLUSION
WEBLIOGRAPHY

PAGE NO.
9
10
10-11
13-14
14-15
15-18
18-19
19-20
20-21
21-22
24
24-26
26
26
26
27
27-28
28-29
30
31-32
32
32
32-33
33
33
38-46
47-52
53-63
64-74
75-76
78-79
81
83-84
84
85
86
87

LIST OF FIGURES
TABLE NO.

TITLE

PAGE NO.

2.1
2.2
3.1
3.2
4.1
4.2

Indian Auto Components industry

Investments in the Auto Components Industry
Clients share of GI Auto Pvt Ltd
Structure of Organization
Structure of finance department
Sections in finance department

14
18
29
34
38
43

4.3
4.4
4.5
4.6
4.7
4.8
4.9

Structure of marketing department

Marketing Process
Structure of HR department
Types of training
Structure of Production department
PPC Sturcture
Work Flow Model

47
48
53
60
64
67
69

LIST OF TABLES
TABLE NO.
2.1
2.2
2.3
3.1
4.1
4.2
4.3
4.4
4.5

TITLE
Classification of Tier Firms
OEMs in different clusters
Major players in Auto Component Industry
Characteristics of Components
Financial Statement
Profit and Loss Account
Balance sheet
Recruitment and selection process
Benefits of Employees

PAGE NO
16-17
17
21
28
45
45-46
46
56-57
61

CHAPTER 1
INTRODUCTION

INTRODUCTION
An organization is a social arrangement which pursues collective goals which
control its own performance, and which has a boundary separating it from its environment.
Organization is the association formed by a group of people who see that there are benefits
available from working together towards some common goal.
Organisation is versatile in nature as it is able to adopt or to be adapted to many different
functions or activities. A sound organisation structure can contribute to the success of an
enterprise in many ways. It can secure many advantages like efficient management ,
coordination and communication, growth and diversification, optimum use of technological
innovation optimum use of human resource, and balanced emphasize on various activities in
the enterprise.
It also provides scope for training and development of personnel through proper delegation of
authority. It encourages better human relations between the labour and the management, it
facilitates the smooth flow of work because responsibilities are well defined, and every
employee knows what is expected of him.
To know the activities of organisation it is very much essential to understand the functioning
of the entire functional departments of the organization which helps to know how the
theoretical knowledge is implemented in the functioning of the organisation.
An organisational study is very important to know the functioning of various departments
in the organisation and the process of cordination between them. Organisation study refers
to the study of organisation as a whole and getting adequate knowledge with various
departments in the organization.
It is the study of individual and group dynamics in an organisational setting, as well as the
nature of organisation themselves. The detailed analysis of each and every department helps
to knowing their individual functions and their part in the development of the organisation in
fulfilling its goals and objectives. Whenever people interact in organizations, many factors
come into play. Organizational study is essential to any MBA graduate as it helps them to
connect theory with practice.

The study is carried out at G I Auto Pvt Ltd, Bangalore. This study is based on the different
aspects and dimensions of different departments of the company.

1.2 OBJECTIVES OF THE STUDY

The organisation study is carried out in G I Auto Pvt Ltd situated at Bangalore is to achieve
the following specific objectives:
1.2.1. To familiarize with the organisation structure and its functioning.
1.2.2. To familiarize with the different departments in the organisation and their functions and
activities including documentation.
1.2.3 To understand how the key business processes are carried out in an organisation.
1.2.4 To understand how information is used in organisation for decision making at various
levels including data flow data flow diagram.
1.2.5 To study the overall performance of the organisation.
1.2.6 To understand the performance measurements of employees and various employee
welfare activities, training activities.
1.2.7. To understand the steps taken to increase the productivity in the organisation.
1.2.8 To conduct a SWOT analysis of the organisation.

1.3 METHODOLOGY OF THE STUDY

The success of a research depends largely on the methodology used. The appropriate
methodology will improve the validity of the findings. The following methodologies were
adopted for the study.

1.3.1 Identification of the Company

G I Auto Pvt Ltd, Banglore was selected for the organization study, considering various
factors including reputaion of the firm, industry, location etc.

1.3.2 Identification of the Objectives

10

The specific objectives of the organization study was identified and listed out in order of
priority. This helped in conducting the organization study in a systematic and effective
manner.

1.3.3 Data Collection

Both primary and secondary sources were used in this particular study.
1.3.3.1 Primary data
Primary data were collected through observation, personal interview discussion with
managers and employees of the various departments of the organization.
1.3.3.2 Secondary Data
Secondary data were collected through literature review which includes companys internal
records, publications, annual reports, journal, statutory report, website etc.

1.3.4 Analysis and Interpretation

The data collected must be properly analysed to evaluate and enhance the data quality. The
analysis is done to identify the actual meaning of the data which helps in proper
interpretation. Data analysis involves working to uncover patterns and tends in data sets and
data interpretation involves explaining thse patterns and trends.

1.3.5 Documentation
After the analysis and interpretation of collected data, the information is documented in the
form of organization study report, which gives an elaborate report on the organization study.

11

CHAPTER 2

INDUSTRY PROFILE

12

Introduction
Indian Automobile industry is flourishing its twigs worldwide and is close to a frution of
triumph in the global competition. The spine of the industry is its suppliers of auto
components and accessories which is also an exclusive industrial segment. Today auto
industry is enjoying the benefits while the auto component sector is in its gloom despite of
hard efforts of survival. The factors making the differences are unavailability of resources
like skilled labour and technology, high cost of production due to inflation and Government
policies of indirect taxes such as customs and excise. The paper highlights the challenges
faced by Indian auto component industry in domestic and global market
The automobile history dates to the late 18th century. Nicolas Joseph Cugnot a French
engineer is credited with inventing the first self propelled automobile.
The 1960s saw rapid development in automobile manufacturing technology. A milestone in
the history of automobile was achieved by the invention of efficient fuel injection processes
independent suspensions and turbo changes. Pontiac trans am was the best selling car from
1969 to 1980 computer aided design (CAD) was introduced for designing vehicles from the
1980s ford Taurus was the first vehicle to be built using CAD.

2.1 Indian Auto Industry

The Indian auto industry today is going from strength to strength. In terms of statistics it is
the,

Largest Three wheeler market in the world.

Second largest two wheeler market in the world.
Fourth largest tractor producer in the world.
Fifth largest commercial vehicle market in the world.

Further growth is driven by the facts of higher GDP increasing infrastructure project, increase
in disposal income with service sector , replacement of old vehicles and change in socioeconomic levels like middle to higher income groups etc. all these facts have direct growth
impact on the automobile industry.

13

The range of vehicles made in India includes light passenger vehicles including passenger
car, commercial vehicle including high commercial vehicle, medium and heavy commercial
vehicle and buses, tractors including farm, earthmoving and construction equipments two
wheeler including motor cycle, scooter and mopeds and also include passengers careers and
goods carries.

2.2 Auto Component Industry

The Indian auto components industry is one of the fastest growing industries in the country. It
has grown at a CAGR of 26.2% during the last five years ended 2011-12. The industry has a
distinct global competitive advantage in terms of cost and quality and this has aided in its
transformation from a local supplier to a global auto parts supplier catering to some of the
big names in the global automobile industry. The cost advantage stems from the cost
competitiveness in raw material and labour, while its established manufacturing base is a
compelling attraction for global Original Equipment Manufacturers (OEMs) to outsource
components from India. The industry is transforming itself from a low volume highly
fragmented industry into a competitive industry backed by competitive strengths, technology
and transition up the value chain.
The Indian auto component industry is estimated to be around 2,063 billion as of FY12,
almost thrice the size in FY07.
Figure 2.1 Indian Auto Components industry

Turnover(Rs bn)
2500
2000
1500

Turnover(Rs bn)

1000
500
0
FY 07

FY 08

FY 09

FY 10

FY 11

FY 12

14

Several factors have enabled this transformation of the Indian auto components industry.
Governments role has been in the form of initiatives and incentives, additional subsidies and
formation of various clusters as also economic liberalisation. The gradual increase witnessed
in the per capita income in India has led to leading aspirations and greater demand for
automobiles, which in turn has boosted the demand for auto components. In addition, the
entry of various foreign players in the Indian market led to companies adopting innovative
marketing strategies to fend competition. The competitive intensity led to the improvement in
end products.
Industry Structure
The Indian auto components industry can be broadly classified into the organised sector and
the unorganized sector. There is a clear demarcation with respect to products in these two
sectors, the organized sector caters to high value-added precision engineering products and
accounts for around three fourth of the total production. The unorganized sector caters
to the lower value-added segments. The organized players cater to the original equipment
(vehicle) manufacturers, while the unorganized sector largely caters to the aftermarket. There
are around 600 players in the organized sector accounting for around 70% of the industrys
total revenues.
In the organised sector, key auto component manufacturers include Brakes India Ltd., Bosch
Chassis Systems India Ltd, Sona Koyo Steering Systems Ltd, Spicer India Ltd., Automotive
Axles Ltd., Sundram Fasteners Ltd., Wheels India Ltd., Jay Bharat Maruti Ltd., Motherson
Sumi Systems Ltd., Subros Ltd., Pricol Ltd., Bosch Ltd., Bharat Forge Ltd., Amtek Auto Ltd.,
Federal-Mogul Goetze (India) Ltd., Ucal Fuel Systems Ltd., Lucas-TVS Ltd. and Denso
India Ltd.

2.3 Classification and Structure of Auto Component Industry

The auto components industry in India can be classified based on different parameters, these
include, product range and size and location. The Indian auto components industry offers a
comprehensive product range, consisting of approximately 20,000 components required for
vehicle manufacturing. The entire product range is grouped into seven categories. Engine
parts and drive transmission and steering parts are the two main product categories,
contributing to 50% of the Indian auto component industry in FY12.
An auto component industry can be segmented on the basis of the production of component
types as below -

15

 Engine Parts
Drive Transmission and Steering Parts
Suspension and Brake Parts
Electrical Parts
Equipments
Other Parts
In India the auto component industry is structured in three basic categories Indian companies without any collaboration or having very minimal collaboration with any
foreign companies for e.g. Sundram Brake Lining, Sundram Fastners.
Indian companies with foreign collaboration, such as Indian Nippon Electricals, Hinoday
etc.
MNCs completely owned subsidiaries or the units in which they have major control. For
e.g. Delphi, Visteon, Denso, MICO etc.
India is fast emerging as a powerhouse of global manufacturing. With the backing of a robust
higher education system, a huge army of cheap skilled manpower (India produces about
400,000 engineers annually), and a history of manufacturing that goes a long way, the
country has acquired what is needed in the areas of process, product and capital engineering.
These intrinsic advantages offered by India have led to a spurt in the entry of
multinational companies; domestic companies scaling up their operations; and the expansion
of the domestic market itself, thereby enabling the country's manufacturing sector to undergo
a revolution.
Based on their class and size of their location, the Indian auto component industry can be
classified as Tier I, TierII and Tier III firms.
Table 2.1 Classification of Tier Firms
Tier I
Comprises large firms
Almost all the companies
are capable to
manufacture multiple auto

Tier II
Comprises medium
sized firms
Comparatively less
access to latest

Tier III
Comprises medium sized
firms
Comparatively less
access to latest
16

components,
equipped with high-end
technology and
Large number of OEM.
Most companies have highend research
and development centres to
carry out new innovation.
High IT penetration in
these areas which can
reduce their operaional
expense as most of the
machines are
automatic.

technology
Mostly multiple
component
manufacturers and have
comparatively
better operational
efficiency
Medium penetration of
IT which are mostly
fragmanted.

technology
Mostly multiple
component
manufacturers and have
comparatively
better operational
efficiency
Medium penetration of
IT which are mostly
fragmanted.

Auto component Clusters

The auto components industry in India is largely present in the form of clusters, due to the
presence of a large number of small and unorganised units. The clusters have OEMs as hubs
or centres of growth while the suppliers have formed their bases around the OEMs.
Table 2.2 OEMs in different clusters
Cluster
Western Cluster
Southern Cluster
Central Cluster
NCR Cluster
Eastern Cluster

Cities
Pune, Aurangabad, Nashik (Maharashtra)
Chennai & Coimbatore (Tamil Nadu); Bengaluru (Karnataka)
Pithampur, Dewas, Indore (Madhya Pradesh)
Faridabad & Gurgaon (Haryana); Alwar, Bhiwadi, Khuskhera &
Chopanki (Rajasthan)
Jamshedpur & Guptamani near Kharagpur; Singur (West Bengal)

Investments in the sector

The auto components industry in India has been witnessing a steady flow of investments
excepting FY09, when investments dropped due to recession, as companies postponed their
investment plans. Investments in the sector have since picked and are estimated to have been
around ` 10,000 crore during FY11. Major foreign companies have been investing in the
domestic industry through joint ventures and partnerships or by setting up their own
production plants. Domestic component players are also investing heavily in the industry to
reap benefits of long-term growth prospects.

17

Figure 2.2 Investments in the Auto Components Industry (crore)

12000
10000
8000
6000
4000
2000
0
FY 08

FY 09

FY 10

FY 11

2.4 Supply Side Scenario

The total turnover of the Indian auto component industry is estimated at US$9 billion in
2006. The industry has the resources to manufacture the entire range of auto products
required for vehicle manufacturing, approximately 20,000 components. The entry of global
manufacturers into India during the 1990s enabled initiation of new technologies, new
products, improved quality and better efficiencies in operations. This obviously acted as a
catalyst to the local development of the auto component industry. The Indian auto component
industry is widespread and highly fragmented. Estimates by the Department of Heavy
Industries, Government of India, indicate that there are over 400 large firms who are part of
the organized sector and cater largely to the Original Equipment Manufacturers (OEMs).
Approximately 10,000 firms exist in the unorganized sector that operates in a tier-format. The
firms in this segment operate in low technology products and cater to Tier I and Tier II
suppliers and also serve the replacement market. Around 4% of the companies operating in
the auto component segment cater to 80% of the demand emanating from OEMs. Within the
unorganized segment, apart from supplying in the aftermarket, a number of players are also
involved in job work and contract manufacturing. The Auto Component Manufacturers
Association (ACMA) asserted the sector is working towards the open market, a large number
of joint ventures with leading global manufacturers have already set up. The sector will grow
18

at 15 percent CAGR till the year 2012 and will achieve the position among the top five auto
component economies by 2025. The Industry is perceived tremendous potential for foreign
direct investments. The exports of auto components in 2006-07 soared to the US$ 3 billion,
which is remarkable, & the investments continuing the rise. The ACMA estimates the global
sourcing of components from the country to double from US$ 2.95 to U.S$ 5.9 billion in
2008-09, and touch US$ 20 billion within next seven years with the expansion of operations
domestically and overseas. The ACMA-Mckinsey tie-up vision anticipates the potential for
the Indian auto component industry to grow at US$ 40- 45 billion by 2015. The global auto
manufacturers look India as a salient manufacturing hub for auto components and which
rapidly gaining up the values of component they source from India.

2.5 Industry Evolution and Growth

At the time of attaining independence in 1947, India primarily had an agrarian
economy with poor manufacturing capabilities. Thus, the task at hand for the government was
to kick-start a stagnant economy.
Indias strategy for the manufacturing sector came to the fore in the second five-year
plan, which laid emphasis on the heavy industries and sought a greater role of the public
sector in industralisation. The result was that areas of high investment, such as arms and
ammunition, transport, energy, coal, iron and steel and oil came under the governments
control.
The real thrust to the manufacturing sector came in the last decade of the 20th century.
Facing huge trade deficits and an overvalued currency, the government decided to liberalise
the economy. Subsequently, a new industrial policy was unveiled on July 24, 1991 that
promised elimination of entry barriers; removal of restrictions of Monopolies and Restrictive
Trade Practices Act on the domestic industry to facilitate its expansion; promotion of foreign
direct investment in manufacturing facilities; and integration of the countrys economy with
the global economy.
While these measures gave a push to the manufacturing sector, physical infrastructure
failed to grow at the same pace, thereby keeping the Indian manufacturers at a disadvantage
as against their global counterparts. Thus, those micro-verticals within manufacturing that did
not rely too much on the physical infrastructure (such as garments, leather, gems and
jewellery) displayed international competitiveness.
19

As the physical infrastructure began to improve in the first decade of the 21st century
(with the government allowing 100 percent FDI in 2006 in several sectors such as airports,
roads and ports), so did the other areas of the manufacturing vertical such as complex
components, automobiles, petroleum refining, capital goods and engineering products and
services.
The government continued to support the manufacturing sector through its policies
and initiatives. Some of the initiatives adopted by the government included a five year tax
holiday in such areas as power projects, export firms and units in electronic hardware and
software parks; enabling access to inputs at competitive prices; reduction and rationalisation
of duty rates; execution of technology upgradation schemes in several sectors like food
processing and textiles; implementation of the SEZ (Special Economic Zone) Act; and the
initiation of the Delhi-Mumbai Industrial Corridor in collaboration with the Japan External
Trade Organisation (JETRO).
The Indian manufacturers lapped up these sops extended by the government, and
scripted some amazing success stories. For instance, Bharat Forge today ranks as the worlds
second largest producer of crankshafts, axle beams and other forged auto components.
Likewise, Tata Steel, post the acquisition of Corus, has come to be the fifth largest producer
of steel worldwide. Suzlon enjoys the distinction of being the worlds largest wind turbine
generator manufacturer.
Over the years, several key sectors in the manufacturing vertical have exhibited strong
growth.
According to a report by McKinsey Global Institute, the fast growth in Indias
economy would see the country emerging as the fifth largest consumer market worldwide by
2025. Similarly, it is expected that by 2025, the consumer spending will quadruple to $1.5
trillion riding piggyback on the three-fold rise in household income and a ten-fold jump in the
middle class population.

2.6 Future Trends

Indirect taxes would be eliminated once state VAT (Value Added Tax) is implemented
and an integrated Goods and Service Tax (GST) is introduced. As improve duties are further

20

reduced, indirect taxes in India will come at par with those in China and ASEAN
(Association of Southeast Asian Nations).
Once the SEZ become operational, India would become an attractive destination for
export-driven manufacturing hubs in several industries. The country could soon see setting up
of Manufacturing Investment Regions just as there are Petroleum and Petrochemicals
Investment Regions.
As per a study conducted by the consultancy firm Capgemini in 2007, which included
responses from 340 manufacturing companies across the world, over the next three to five
years, India would threaten China as the worlds top manufacturing destination. The study
said that offshore manufacturing activities will surpass the overall outsourced BPO and IT
activities.

Table 2.3 Major players in Auto Component Industry

OEMs
BMW
Caterpillar
Ford
FIAT
GM
MAN
Mercedes-Benz
Nissan
Peugeot
Renault
Toyota
Volkswagen

Tier I component manufactures

Bosch
Continental
Cummins
DANA
Delphi
Denso
Eaton
Getrag
Kolbenschmidt
Magna
Meritor
TRW
Valeo

2.7 Challenges
The growth prospects for the industry are bright, however to continue to report healthy
growth the industry has to overcome certain challenges facing them. The challenges include:
Technological capability not enough to match global standards
Surging raw material prices putting pressure on profit margin
21

 Slowdown in global economy affecting exports

Players losing bargaining power with larger OEMs
Increasing rivalry among players with numerous small firms targeting the same customer
segments
FTAs signed with other developing countries increasing bulk imports of cheaper auto
components.
Infrastructure challenges Roads, Ports & power
R&D Competence
Raising capital and scaling capacities.

22

CHAPTER 3

COMPANY PROFILE

23

3.1 Introduction
G. I. Auto Pvt. Ltd. was founded in the year 1974. The name G.I. stands for General
Industry. Today, it has established itself as one of the reputed manufacturers of Precision
Turned Components, CNC machined parts, Press components, Stampings, Automotive subassemblies and Assemblies.
Its wide range of products including sub-assemblies and assemblies find application
in a wide variety of industries such as automobile, engineering and instrumentation.
It has been certified for ISO/TS 16949-2009 company and has introduced best
practices such as Kaizen, TPM, 5S and other modern management techniques.
Since its inception the company has continuously modernized and upgraded its
manufacturing facility and is embarking on an ambitious expansion program. The major
customer for the company is TVSM and BOSCH Company.
The company is manufacturer of two wheeler and four wheeler engineering parts and sub
assembling and it is globally operated and it has 3 units in India located in Bangalore i.e.
1. Unit -1, HAL Ancillary Indl. Estate, Marathalli.
2. Unit -2, Bommasandra Industrial Area.
3. Unit -3, NGEF Industrial Estate, Mahadevapura, Bangalore -48 (Export Unit).

3.2 Nature of Business Carried

1. Unit -1, HAL Ancillary Indl. Estate, Marathalli.
The unit 1 is the mother plant which was started first. This unit has many operations
such as
a) Conventional Process
b) CNC Process
c) Special Process
a. Conventional Process: Under this process we are having
i.
Traub (Single spindle automated)
ii.
Tread rolling
iii.
Grinding (Central less grinding, Bench grinding, Circuit grinding)
iv. Taping and Drilling process
b. CNC Process: Under this process we are having
i.
CNC turner mill center
24

ii.

CNC turning center

c. Special Process: Under this process we are having

i.
Welding (Co2, Spot on projection welding)
ii.
Brazing
iii.
Pressing
The unit-1 consist of the machinerys such as
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.

9 CNC Turning Centers, 2 Turn Mill Centers.

26 Traubs ranging from 25 Dia to 60 Dia
Thread Rolling, Centre less & Cylindrical Grinding Machine
Power Press ranging from 5 to 30 ton
Spot, Projection & Co2 welding
Brazing, Surface Grinding & Vibro Machine
Automatic Lathes, Tapping, Drilling & Bench Grinding Machine
CAD- CAM Facility
Adequate Inspection and Testing Facility

2. Unit -2, Bommasandra Industrial Area.

This unit has operations such as
a) Welding (Co2, Spot on projection welding)
b) Brazing
c) Pressing
The unit-2 consist of the machinerys such as
a.
b.
c.
d.
e.
f.

42 Power presses Ranging from 30 tons to 100 tons.

Welding SPMs
Spot, Projection & Co2 welding
Brazing
CAD Facility
Adequate Inspection and Testing Facility

3. Unit -3, NGEF Industrial Estate, Mahadevapura, Bangalore -48 (Export Unit).
This unit has operations of export throughout globally
The unit-3 consist of the machinerys such as
a) 9 CNC Turning centers & 1 VMC
b) 2 Conventional Lathe, 2 drill machines & 2 Buffing Machines
c) SPM Cutting machines
25

d) Professionally Qualified & Trained workforce at all level

e) CAD - CAM Facility, Electronic Etching Machine
f) Adequate Inspection and Testing Facility

3.3 Vision
To be a premium metals major, Global in size and reachWith a passion for excellence.

3.4 Mission
To relentlessly pursue the creation of Superior shareholders value by exceeding
Customer expectation potential and being a Responsible corporate citizenAdhering to our
values.

3.5 Values
Integrity
Honesty in every action

3.6 Quality Policy of GI Auto Pvt Ltd

Consistently earn customer recognition as preferred suppliers of auto mobile
components and assemblies.
Achieve continual improvement in quality management system through efficient
utilization of resource by involving customer , supplier and employees.
Continuously upgrade the existing infrastructure keeping in line with the technology.
Ensure product /personnel safety by minimizing the potential risk and providing a safe
work environment.
3.7 PRODUCT PROFILE
Product Range
GI Auto's product range includes:

26

Precision Auto Turned Components

CNC Machined Parts

Pressed Components and Sheet Metal Parts

Automotive Components, Sub Assemblies & Assemblies

Precision Auto Turned Components

GI Auto has large number of single spindle automats of capacity ranging from 3 mm dia to 60 mm
dia. The machines are equipped with special attachments and can machine components out of steel,
brass, aluminum, copper and stainless steel.
High accuracy, excellent finish and mass volumes are some of the key features.

CNC Machined Parts

CNC Turning Centers from reputed manufacturers are installed in large numbers with all specialized
tools and attachments.
GI Auto manufactures highly precision parts like shafts, special nuts, etc mostly in alloy steels of
difficult specification. Qualified CNC programmers and operators handle the operations.

Pressed Components and Sheet Metal Parts

Power presses installed in GI Auto range from 5 Ton capacity to 150 Tons. GI Auto has excellent
arrangement for manufacture of press tools. Pressed components of high accuracy and intricate design
are manufactured.
For sheet metal components where ever need arises GI Auto has access to most advanced CNC Turret
Punch Press and CNC Press Brake with in the Group of Companies. This facility enables GI Auto to
develop prototype samples within a short time without waiting for press tools.

Automotive Components, Sub Assemblies & Assemblies

In-house capacities for manufacture of wide range of turned, pressed and sheet metal components
along with sophisticated welding, brazing, riveting and spot welding facility, has enabled the company
to develop a number of automotive parts.

27

Table 3.1 Characteristics of Components

Turned Components

Sub assemblies

Pressed components

High Accuracy

High Precision

Interactive deign

Excellent Finish

Alloy Steel

Advanced Machines

Mass Volume

Difficult Specification

Wide Range Products

3.8 CUSTOMERS
The customers are globally located. The international customers are

Flowserve
Budenburg Company
Tyco flow control
Dresser

The domestic customers are

Tvs company
Bosch company
Suprajit company
Sandhar company
Bhart Electronic Company
Flem
Tvs Sundram Clayton Ltd
Multilink
Oswal

28

Client's Share

TVS
TYCO
BOSCH
Other Companies

Figure
3.1 Clients share of GI Auto Pvt Ltd

The above chart represents G.I. Autos share of providing components in various companies
It provides 72% to TVS; 20% to Tyco; 5% to Bosch and 3% to other companies.

29

3.9 GI Team
The top management team consists of postgraduates from the Indian Institute of Technology, Madras
and the Indian Institute of Management, Ahmedabad. A dynamic team of experienced professionals
including chartered accountants, graduate engineers and a highly skilled work force supports them.

Financial Stability
GI Auto is a part of a successful group of engineering industries with a major presence in automotive
components, sheet metal products, building and material handling equipments. We have had a
continuous and robust year on year growth in sales with consistent profit earnings throughout our 34
years of existence.

Quality ManagementSystem
We have always endeavored to maintain the highest quality standards in our processes and pass on the
resultant benefit in terms of Quality, Cost and Delivery to our customers thereby strengthening our
ties with them.
GI Auto is an ISO / TS 16949:2002 certified company with an effective quality management system.

Cost Competitiveness
Our entire team is committed to keep the costs down in every aspect of our business and provide costeffective solutions to our customers.

Delivery Capability
G. I. Auto has been continuously upgrading its manufacturing facilities and installing additional
capacity. This has enabled the company to reduce the lead-time for product development and deliver
quickly and competitively.

Environment Management System

30

We have a strong commitment to preserving the environment in which we work and live.
We have a clearly defined environment policy and are working towards getting certified for the
Environment Management Standard ISO 14001.

Total Productive Maintenance (TPM)

Just in Time (JIT)

Customer Satisfaction Index (CSI) Survey

Statistical Quality Control (SQC)

1S & 2S Activities

Benchmarking

Future plans include a focus on export activities, setting up a 100 % Export Oriented Unit and
moving towards certification for Environment Management System ISO 14001.

3.10 AREA OF OPERATION

The company is operating worldwide. The international places are Australia, USA, UK and Indonesia.
The product are been exported to these places. The products are

a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.

Adjusting bolt nuts

Retainers
Spindle assembly
Adjusting bolt
Coupling nuts
Stems
Tierod
Baking plate
Daiphram screw
Insert kit cnot entry
Silver bullet housing
Gronund bar single nar
Ground bar double nar
CNDT entry ground strap.

In India the place where the company deals are Tamil Nadu, Mysore Himachal Pradesh. The products
which are traded in India are
31

a.
b.
c.
d.

Press component and sub assembling

Welding and brazing
Molding component
Heat treated and plated component.

3.11OWNERSHIP PATTERN
The company was started by Chempi Madhava Pai who is a managing Director of the
company along with the other two people i.e. Vinay Madhava Pai (Director) and Hema pai with the
Authorized Equity Share of 10,000 of Rs 100/-each and Paid up Capital of 5,110 Equity Shares of Rs
100each with fully paid up all for cash. And at present Mr Jagdish who is the Executive Director of
the company is also the share holder of the company. And at present they are planning to open one
more 4th unit in Malur.

3.12 COMPETITORS INFORMATION

The competitors of this company are

a. Naveen Industry
b. Gowri Shankar Industry
c. J.J Glass Tranics
This industry are competing on the basis of cost, price but the G,I Auto Pvt Ltd is
using the concept of Kaizen, TPM, 5S and giving proper quality and meeting the
demand with less cost.

3.13 INFRASTRUCURE FACILITY

The company operates with 20,000 square feet of built area with adequate power, generator backup,
own bore-well water supply and excellent work environment with lots of greenery, transport facility.
Manufacturing facility includes

CNC Turning Centers

Single Spindle Automats (capacity: up to 60mm diameter)

Capstan Lathes

Center-less Grinder

32

Cylindrical Grinding

Thread Rolling

Range of Power Presses up to 100 Ton

Riveting Machines

Projection Welding

Spot Welding

Brazing

Wide variety of productivity improvement aids, jigs, fixtures & tooling

Major inspection facilities include Air Gauge, Digital Vernier Height Gauge, Special Purpose
Gauges and Rockwell Hardness Tester, Slip gauges, Surface finish tester.

3.14 OTHER FACILITY PROVIDED

Medical facility
Quarters facility
Club facility
Transport facility
Mobile bill facility
Bus pass facility
Full attendance bonus

3.15 ACHIEVEMENTS/ AWARDS

1.
2.
3.
4.
5.

Bosch Appreciation certification for continues improvement

National Award for best SME (AUTO SECTOR) by Corporation Bank
Tyco Star Performance Award 2007
Tyco Star Performance Award 2009
Tyco Star Performance Award 2010

33

Figure 3.2 Structure of Organization

ORGANISATION CHART
MD

COO

Technical
Advisor
MR

HRM

SDE

DM

DE

PM

Superviso
r

MM

QAM

Electricia
n

MKTM

FM

Technicia
n

Operators

PRO.
FOREMAN

APM

CNC
PROGRAMME
RS

AFM

PDI

AQM

SI

IIC

JOB SETTERS
FGI
34

SQI

OPERATO
RS

The above hierarchy follows the Functional Organisation Structure which is explained as
follows
The Top Level Management consists of
1. Managing Director
2. Chief Operation Officer
3. Technical Advisor
The Middle Level Management consists of managers meant for each department
1. Human Resource Manager
2. Development Manager
3. Production Manager
4. Maintenance Manager
5. Quality Assurance Manager
6. Marketing Manager
7. Finance Manager
The Lower Level Management consists the following
1. Senior Development Engineer
2. Development Engineer
3. Supervisor

35

4. Production Foreman
5. Assistant Production Manager
6. CNC Programmers
7. Electrician
8 . Technician
9. Packing and Despatch In Charge
10. Assistant Quality Manager
11. Stores in Charge
12. Incoming Inspection in Charge
13. Supply Quality in Charge
14. Assistant Finance Manager

36

CHAPTER 4
FUNCTIONAL DEPARTMENTS

37

4.1 FINANCE DEPARTMENT

Finance is the life blood of every business. Finance in simple terms means the
provision of money at the time when it is required. Every enterprise, whether big, medium or
small needs finance to carry on its operations and to achieve its target. In fact, finance is so
indispensable today that it is rightly said to be the lifeblood of an enterprise without adequate
finance, no enterprise can possibly accomplish its objectives. Finance is very important for
the smooth running of the business.It is for proper money management. Onlythrough proper
money management a firm can identify it strength and weakness in thefinancial structure.It
has been rightly termed as universal lubricant which keeps the enterprise dynamic.unctioning
of every organization is essential. The G I Auto Pvt Ltd also give great importance to its
financial department.

Figure 4.1 Structure of finance department

BOARD OF DIRECTORS

CHIEF FINANCE OFFICER

SENIOR FINANCE OFFICER

DEPUTY MANAGER

FINANCE EXECUTIVE AND

STAFF

38

4.1.1 SOURCES OF FUNDS

The major sources of funds of G.I.AUTO
Share capital
Reserve and surplus
Loan funds
- Secured loans
- Unsecured loans
4.1.2 MAINTENANCE OF BOOKS OF ACCOUNTS
The capital budgeting is done at the beginning of the year itself. The requirement of
capitalwill be specified for approval. During the budgeted year, if any further requirement of
capital faced, then a proper justification has to be made. If the requirement is seen as an
important one the approval of the capital is sanctioned.
Cash management system is one of the key areas in any business. Apart from the fact that it
is the most liquid asset, cash is the common denominator into which all current assets can be
reduced because other major liquid assets, receivable and inventory get eventually converted
into cash.
Credit control function
A trade credit arises when a company sells on credit and does not receive cash immediately.
A company grants credit to protect its sales from the competitors and to attract potential
customers to buy its product at favourable terms. Credit period allowed is 6 days to 90
days.The collection of credit will be handled by senior sales officers up to 180 days and it
will be handed over to the factory manager. The company will give the creditors a further
extension of one month ,then legal action will be taken against the person or the company. If
the cheque has bounced or has been dishonoured then the company can sue or take legal
action against the person or the company.
Planning of funds
Planning of funds is a careful estimate made by the manager about the total funds
required.This is the estimation done by the observation over the physical activities of the
company.Allocation of fundsProviding funds to proper place at proper time is also an

39

important task to be done by thefinancial manager. He studies the cash requirement of each
department and then funds aredistributed.
Recording of transactions
Each and every transaction that takes place in the company has to be recorded properly forthe
purpose of having better control over the funds and optimality. All the transaction are
recorded in journal and posted to the ledgers.
Fixed Assets.
Fixed assets form the major part of the working of any company. Depreciation of
fixedassets is charged on diminishing balance method.
Cost control
The cost is controlled either in the acquisition of raw materials or reduction in
operatingexpenses or both, as there should be limitation in the utilization of funds.
The companywill always have a comparison of budgets and actuals.
4.1.3 SIGNIFICANT OF ACCOUNTIONG POLICIES
Basis of AccountingThe financial statements are prepared under the historical cost
convention on accrual basis,except as otherwise stated and in accordance with the applicable
accounting standards.Use of estimatesThe presentation of financial statements in conformity
with the generally accepted accounting principles requires estimates and assumptions to be
made that affect thereported amount of revenues and expenses during the reporting period.
Fixed asset are stated at historical cost less depreciation written off and impairment in value,
if any, is adjusted.
Depreciation
Depreciation on assets is provided at the rate prescribed in schedule XIV to thecompanies
Act, 1956 as under; a) In respect of plant and machinery, on straight line method b) In respect
of other assets, on written down value method2. Depreciation on tools and moulds is
provided on written down value method at the rateof 33.33% p.a on technical assessment,
which is higher than the applicable rate prescribedin schedule XIV to the companies Act
1956.
40

Investments
These are valued at cost and permanent fall in long term investment if any is provided for.
Inventories
Inventories are valued at lower cost or net realizable value. For this purpose the cost of
bought out inventories comprises of the purchase cost of the items and cost of bringing the
items to factory on FIFO basis. The cost of manufactured inventories comprises the direct
cost of production plus appropriate overheads.Foreign currency transaction Monetary items
denominated in foreign currency are reported at the exchange rate prevailing as at the date of
the balance sheet and the resultant exchange gain /loss, if any, has been adjusted to the profit
and loss account, to the extent they relate to items other than liabilities incurred for acquiring
for fixed assets. Those relating to liabilities for fixed assets have been adjusted to the carrying
cost of the respective assets. SalesRevenue are recognized when the significant risk and
rewards of ownership of goods havebeen passed to the buyer. Gross sales are inclusive of
excise duty and are net of tradediscount. Retirement benefit Liabilities of gratuity for
employees determined based on actuarial valuation as on thebalance sheet, date is funded
with the Life Insurance Corporation of India, and thecontribution there of payable is absorbed
in the accounts. Liability for leave encashment benefit determined based on actuarial
valuation as on the balance sheet date is provided for in the account.
The finance department is concerned with the planning and controlling of the firms financial
resources. This department is concerned with acquisition of funds and proper utilization of
acquired funds. The transactions of the company are recorded either in journal books or in
subsidiary books, then they are posted in the ledger and trial balance is prepared at the end of
the accounting period.
The planning for accounts is done in the month of March and wages are computed from the
detailed filled in work sheet. All transactions from the issue goods received to the final
documentation are computerized in the accounts department.
The company has recently implemented ERP system where in the transaction is carried on
line. The ERP consists of the FICO (Finance and Costing) module and all the relevant MIS
(Management Information System) which is required for managing the affairs of the
company are available through ERP.

41

There are various selections in G.I.AUTO under which the accounts are maintained

Invoicing of exports
Imports of material and capital items and licensing
Receivables monitoring
Payables processing
Cash/ bank transaction
Sales tax/ central excise
ERP coordination
Invoicing of sales

4.1.4 PREPARATION OF CASH BUDGET

The steps involved in the preparation of cash budget are Estimation of cash receipt: In predicting cash inflow they first recognize the
source of cash receipt. The sources of cash receipt are as follows
- Cash sales
- Accounts receivable
- Loans and advances
Estimating cash disbursement: The finance manager is going to set the
predictions of cash disbursement in different months of the budget period.
This includes
- Direct labour
- Out of pocket expenses
- Capital additions
- Retirement of indebtedness
- Corporate disbursement such dividends

4.1.5 DETERMINATION OF FINANCIAL NEEDS

After estimates for cash inflows and out flows are made these are combined to obtain the net
cash inflow and out flow for each month. The net cash flow is added to the beginning cash
balance and the resulting figure helps to know the cash position of the firm.

42

With all these details the finance manager prepares the budget and arrives at further decision.
Working capital management is concerned with handling problems arising in course of
managing interrelationship between current assets and current liability the excess of current
assets over current liabilities is known as working capital.
Main activity of the finance department is to keep all the accounts of the financial matters. It
is responsibility for maintaining up to data accounts. The various activity are allocated to
different sections.
Figure 4.2 Sections in finance department
GENERAL
MANAGER
General Manager

MANAGER
COMMERCIAL

Costing
& Fiixed

Despatc

Stores
A/C

Excise

Secrtory
receotion

Bills

Sales
invoicing

Cash &
Bank

Payroll

The costing section determines the cost incurred on various items of management,
information system is adopter in the section, which is clearly financed by the various banks.
Excises section files periodic returns under various acts like PF, ACT, Employees State
Insurance Act, Sales Tax, Central Tax etc. It issues sales tax,. This section carries out all the
activities concerned with the excises.

43

Pay roll section prepares the pay sheet. They keep account of the raise in pay, bonus,
deductions in salary if any etc of each employees. The net salary of each employee is
tabulation in this section.
Cash in bank section regulates the day bank and cash transaction. The section issues
cheques to supplier after the instruction frauds the bill payable section. It prepares the bank
reconciliation statement and also reconciles the supplier and customer accounts. It provides
all records to the auditors, internal and external.
Bills payable section, the section verifies the purchase bills and receives the debit
notes and credit notes as per the instruction of purchase department.

Functions of finance department

1. Preparation of balance sheet, doing costing product i.e. making payments for its
2.
3.
4.
5.

supplier, contractors and employees.

It is concerned mainly with profit ability.
Planning about tax ie saving cost tax is done.
Stock valuation, FIFO METHOD is used.
Frequent meeting is held and any suggestion regarding cutting down of tax and cost is

welcomed.
6. Verification of items is done once or twice in a year depending upon the items.
7. In normal circumstance they can take decisions.

4.1.6 ANALYSIS OF FINANCIAL STATEMENT:

Growth in the Asian region led by China and India will continue to drive the demand for
metals. However, in short the rise in the price of inventory and metals will lead to increase the cost
and will have a great impact on profit.

Table 4.1 Financial Statement

YEAR

2011-12

2010-11

2009-10

EPS

2740

1650

1546
44

NPM
(Net Profit Margin)
RONW
(Return On Net Worth)
ROCE
(Return On Capital Employed)
DPS
(Dividend Per share)
INVENTORY TURN OVER
EBIT MARGINE
(Earnings Before Interest and
Tax)

4.75%

3.40%

5.21%

22.60%

16.61%

18.65%

10.19%

7.63%

8.52%

NILL

NILL

NILL

29.19

27.47

25.50

6.41%

4.69%

7.85%

Table 4.2 PROFIT AND LOSS A/C

Particulars

2012

2011

2010

Revenue from operations

29,48,51,472.90

24,77,86,721.72

14,16,08,797.1

II

Other income

2,48,01,072.43

2,06,98,571.68

1,08,80,247.55

III

Total revenue(I+II)

31,96,52,545.33

26,84,85,293.40

15,24,89,044.7

IV

Expenses
Material cost

23,83,05,183.37

21,59,33,821.63

11,95,84,798.60

Employee cost

2,81,17,721.95

2,72,60,404.82

94,34,571.51

Operating & other expense

2,08,38,010.82

87,40,428.00

81,87,388.00

Finance cost

32,25,410.81

15,72,903.01

10,46,514.73

Inventory

13,94,602.95

(20,00,012.00)

(18,42,920.00)

Depreciation

88,67,669.00

53,46,672.00

41,79,746.90

Total expense

30,07,48,598.8

25,68,54,217.4

14,05,90,099.7

Profit before tax (III-IV)

1,89,03,946.5

1,16,31,075.94

1,18,98,944.96

VI

Tax expense
Current tax

49,00,000.00

32,00,000.00

40,00,000.00

Deferred tax

Nil

Nil

Nil

Profit for period (V-VI)

1,40,03,947.38

84,31,075.94

78,98,944.96

45

Surplus brought forward

5,44,58,048.69

4,60,26,972.69

3,81,28,027.73

Total profit

6,84,64,815.01

5,44,60,867.83

4,60,29,791.69

Table 4.3 Balance sheet

LIABILITY
SHARE CAPITAL
Share capital
RESERVE AND
SURPLUS
Reserve and Surplus
NONCURRENT LIAB
Secured loan
CURRENT
LIABILITY
Short term
Trade payables
Other current liability
Short term provis
Total

CURRENT
ASSET
Fixed asset
Tangible asset
INVESTMENT
Long term loans &
advance
CURRENT ASSETS
Inventories
Trade receivable
Cash
Short term loans &
advance
Other assets
Total

2012

2011

2010

5,11,000.00

511000.00

511000.00

6,84,64,815.01

5,44,60,867.83

4,60,29,791.69

61,34,686.34

56,50,674.99

9,59,647.16

9,34,612.25
3,32,54,043.70
3,44,92,105.41
33,31,841.00

9,37,347.01
3,92,62,254.97
2,58,86,823.22
10,30,564.00

3,70,27,989.32
89,40,000.00

14,71,23,103.71

12,77,39,532.02

9,34,68,428.17

2012

2011

2010

7,41,00,746.37

5,07,86,912.24

4,60,53,038.30

17,89,024.75

1,23,07,824.75

34,30,624.74

90,39,041.00
5,17,47,77,612.12
55,58,112.00
48,81,312.11

1,01,99,164.00
4,15,48,947.17
1,14,49,837.92
14,40,500.74

72,29,754.00
2,78,46,364.47
89,02,901.82

6,345.00

6,345.00

6,345.00

14,71,23,103.71

12,77,39,532.02

9,34,68,428.17

4.2 MARKETING DEPARTMENT

46

Good marketing is no accident, but a result of careful planning and execution of marketing practices
that are being refined and reformed on a frequent basis virtually in all the industries to increase their
chances of success.
Marketing deals with identification and meeting the needs of the customer. American Marketing
Association offers the definition that - marketing is an organizational finch and a set of processes for
creating communication and delivering values to the customers and for managing customers
relationship in way that benefits the organization and its stakeholders. The main and major aim of

marketing department is to identify the market demand andsupply the goods as per the
demand.
Marketing department in G I Auto Pvt Ltd is differential, whichmainly focuses on promoting
the goods produced and gather a realizable order for thecompany such that at no time there is
stagnation experienced in the enterprise due to lack oforders and such that the delivery can be
made as per the predefined data.
The marketing department plays a vital role in the production planning as a constant feedback
of the quality of finished products is verified regularly to check thepossibility of finishing the
production of the user specified products in time.

Figure 4.3 Structure of marketing department

GENERAL MANAGER

PLANT HEAD

HEAD OF THE DEPARTMENT

SENIOR MARKETING
EXECUTIVE

4.2.1 Marketing system

MARKETING EXECUTIVE AND
STAFF

47

G.I. auto follows direct marketing system it has direct contact with its customers both domestic and
overseas. It receives the order directly from the customers and dispatches the products directly to
them.

4.2.2MARKETING PROCESS MAPPING

G.I.AUTO follows a process to enquire its customers for their needs and to attain maximum customer
satisfaction level.

Figure 4.4: Marketing Process

CUSTOMER ENQUIRE PROCESS

CUSTOMER ORDER EXECUTION

LOGISTIC INITIATED CHANGES

CUSTOMER INITIATED CHANGES

CUSTOMER SATISFACTION

BUSINESS PLAN UPDATION

48

4.2.3 FUNCTIONS OF MARKETING DEPARTMENT

1) Following the quality management system
2) Management review
3) Internal communication
4) Customer communication
5) On Time response to enquiries
6) Following up with production/relevant functions to ensure on time delivery
7) Invoice & Shipment
8) Handling of customer complaints
9) Customer satisfaction
10) Analyse Export trend
GI Auto Pvt Ltd focuses on both domestic and international market. The domestic customers
are Tvs company, Bosch company, Suprajit company, Sandhar company, Bhart Electronic
Company, Flem, Tvs Sundram Clayton Ltd, Multilink , Oswal. The international custmers are
Flowserve, Budenburg Company, Tyco flow control, Dresser.
The marketing department collects the product order and the required dispatch date
fromvarious customers. Marketing department prepares the sales order and hands over to
production department. This will be usually done 15 days ahead of a month. Similarly is the
case with domestic market also. The final requirement for the month is prepared on the 1st of
the respective month. No more revision is done until unless the change is inevitable from the
customer side due to any urgent requirement. The final dispatch plan is prepared and given to
PPC. The production will be planned according to this plan.Once the production is completed
the marketing department will verify it based on the initial requirement plan and gives the
approval for raising invoices for shipment to dispatchdepartment. The dispatch department
will prepare the invoice and shipment documentsagainst the Performa invoice/Purchase
Order. They will make the arrangements to take theconsignments to the freight forwarder
who is nominated by the respective customer.
49

The main payments modes are followed in G I Auto Pvt Ltd are: 1. Direct payment The
amount will be collected from the customer in advance i.e. before the consignment is send. 2.
Payment against document payment is done after the consignment is shipped. The bill of
lading and other originals will be handed over to customer directly.
A bank will act as a mediator between the customer and GI Auto Pvt Ltd. A contract is
prepared based on this. The bank will act as a guarantee for the customer for all the purchase
done between the customer and GI Auto Pvt Ltd.
The customers complaints are received by the marketing department.Marketing department
communicate the details tothe quality assurance department. Then a meeting will be arranged
between the membersassociated with the particular issues and then handles the issues through
problem solvingprocess/report.The problem solving process includes the following steps.

Customer reported problem

Team formation
Problem description
Taking corrective action
Implementation
Team and individual recognition

4.2.4 Supply Chain Management

SCM ensures the availability of the required material at the right time atright quantity to
different departments for smooth functioning of the organization. Each plant has its own
SCM department for managing the inward and outward flow of raw materials.
One of the primary tasks of SCM is Supplier selection. It is done in the following way.
a) Supplier registration
b) Supplier audit Onsite evaluation (it should > 70%)
c) Vendor code creation
d) Purchase Order raising
e) Initial sample (prototype) released.
The onsite evaluation is conducted Vendor rating. There are various criteria in
onsiteevaluation. They are
50

1. Pricing of the material for supply

2. Checking with the vendors customer list to check whether they supply for the
competitors.
3. Suppliers approved vendor list.Supplier selection from the approved listChoosing the
right vendor from the approved vendors list is other major tasks of SCM.
Thefollowing steps are taken in this process.
1. Identify the component for purchase and their design.
2. Choose the associated vendors from the approved vendor list.
3. Send the design to the vendor and collect feasibility and collect the quotation.
4. Compare the quotation the price quote prepared by G I Auto Purchase order plan.
a) SCM prepare the schedule of purchase based on M.R.P and priority requirement i.e. may
be daily, weekly or monthly basis.
b)Schedule for supplier The schedule is prepared by SCM are given to supplier to ensure
the prompt supply of raw materials. The supplier will give acknowledgment for the schedule
of raw material.
SCM has to ensure the prompt supply of the raw materials form the supplier as per the
scheduled plan. Material Reception the material received in the stores is first verified by
inspectiondepartment and standard lab. The accepted products are then moved to the store.
The rejected materials are cross verified by the SCM dept with master piece and ensure the
actualreason for the rejection before communicating to supplier ERP is the software
application used by SCM. It is used for monitoring the task, and for scheduling the purchase
plan.

4.2.5 NEW PRODUCT DEVELOPMENT

51

The marketing department of G.I. AUTO is associated with new product development. Its the most
important division dealing with the new product development area and has also proven to be of high
priority since it has led to a fast growth of the company.
The frequent technological upgrading process within the company is responsible for the art of new
production development. The marketing department receives the orders from the customers along
with the design needed by them. G.I.AUTO uses various tools for new product development.
The company uses the following tools for New Product Development

Unigraphics for 3D modeling and tool path generation.

Mechanical desktop for machine design.
AutoCAD / Inventor for tool and fixture design and 2D drafting.
Wrench Collab PDLM (Product Development Lifecycle Management) Software
for management of product development, drawings, documents and data control.
The marketing department plays a major role in the New Product Development and this helps in
increasing the customer satisfaction.

4.3 HUMAN RESOURCE DEPARTMENT

52

Human resource management it is the most important department in a business concern.

Proper managementof human resource is very essential. Human resource is the key catalyst
that determines organizational growth. It plays an active role on the economic development
of the organization and the effective exploitation of the natural and physical resource depends
upon the best utilization of human resource.
Human resource is an essential thing for the effective and optimum exploitation of other
resources. Human resource management includes the management of people in the
organization which starts from recruitment of an employee and ends with the retrenchment of
an employee.
Specifically the activities included are human resource planning, job analysis and design,
recruitment and selection, orientation and placement, training and development, performance
appraisal and job evaluation, employee and executive remuneration, motivation, standard
communication, welfare, industrial relation and the like. The human resource department is of
immense importance since it involves matters such as identifying, placing, evaluating and
developing the right individuals at work and maintaining multi lateral communication
systems.

Figure 4.5 Structure of HR department

GENERAL MANAGER

HUMAN RESOURCE
MANAGER

4.3.1 OBJECTIVES

JUNIOR EXECUTIVE
AND STAFF

53

 To provide a comprehensive frame work and a process for the development of human
resource in the organization.
Enable to the systematic information on human resource for man power planning,
development, succession.
To increase the capacity of the organization to recruit, retain and motivate employees.
To provide a healthy climate for every employee to develop and apply his capability
to achieve individual and organizational goals.

4.3.2 FUNCTIONS OF HR DEPARTMENT

Conducting job analysis
Planning labour needs and recruiting job candidates
Selecting job candidates
Conducting orientation and training programs for new employees
Managing wages and salaries
Providing incentives and benefits
Appraising the performance
Communication with employee (interviewing, counselling, discipline)
Training and developing managers
Building employee commitment

4.3.3 TYPES OF EMPLOYEES

Staffs
Employees
Trainers

ELIGIBILTY CRITERIA

54

G.I. auto has prescribed eligibility criteria on for all the three types of employees, which depends on
the job specification of the employees.
STAFF
Education qualification: Diploma, B.E. Any specialisation
Number of staffs in plant: 72 (segregation shown below)
The senior employee in the workers category processes the needed experience and knowledge which
is promoted to the staff category.
WORKERS
Education qualification: S.S.L.C, PUC
They are mostly prospective employees taken after the direct walk in interview or the people who
have retired after having worked in the production department of higher level enterprises.
The total manpower of three plants is 524 (including staff numbers) which is segregated as follows

Production dept. 445

Finance dept. 12
HR dept. 8
Marketing dept. 12
Quality dept. 19
Safety dept. 31

Man power requirements are taken care of by proper planning and estimating the vacancies which is
done by departmental head that fills the man power requisition forms by the HR personnel.

4.3.4 RECRUITMENT
Recruitment is the process to discover the sources of man power to meet the requirements of
the staffing schedule and an employee effective measure for attracting that man power in
adequate.

Figure 4.4 Recruitment and Selection Process

55

Appointment

Process

Output

(a) Creation of

(a) Based on the creation of

vacancy

vacancy

(b) Additional man

manpower

power requirement

recritment

identified by

decided.
(b) Discuss with mangement

department head
concerned
(c)Skill matrix

and

Responsibility

additional
requirements

of

employee

is

regarding recritment.
(c) Review the existing resumes

Advertisement

HRM

and in case of non availability of

required resumes, prepare an
advertisement

based

on

the

required skill.
(d) Advertise through employees,
colleagues

and

if

necessary

through newspaper also.

(e)Based on the application
received,

Chief

Operation

Officer(COO)/

Management

Representative(MR)
interviews

and

conduct
select

the

candidates with consultation of

Executive Director(ED).
(f)After
selection,

give

appointment order to be selected

candidates.
(g) Candidates are also selected
based on the recommendations
from
(a)Candidates joined

MD/ED

without

the

folowing the steps from (a) to (d)

(a)Create schedule for induction Training
training

schedule

HRM

(a)Induction training (a)Induction training schdule is

schedule
updated for the training given by
(b)Induction training
the department heads to the

HRM

56

checklist

newly joined employee

(b) After the induction training (a)Updated
the emloyee is placed in the induction
department

and

on

the

job training

training

arranged

by

the schedule

is

department head.
(c) The induction

training

schedule is updated is for the

Job training given.

4.3.5 SELECTION PROCEDURE

Selection is the process of ascertaining the qualification, experience, skills, knowledge etc, of
an applicant with a view to appraise his/her suitability to a specific job designation.
Selection procedure include following steps: Framing and developing application blanks
Creating and developments rates and reliable testing techniques
Checking of reference

4.3.6 PLACEMENT
Placement is the process of assigning the selected candidates with the most suitable job
designations. This includes certain steps like;
Counseling the functional managers regarding placement
Conducting follow up study,
Appraising performance in order to determine employee adjustment with job
correction misplacement (if any) and,
Induction and orientation

Induction Training
I

Introduction
1.1 Nature and structure of the business
1.2 Responsibility of Hods in the organisation
1.3 Certification details (ISO/TS: 16949:2009) IMS (ISO:

14001:2004

& OHSAS: 18001:2007)

57

 II Employment Conditions

2.1Working times and breaks

2.2 In & out time punch

2.3Leave entitlements

2.4 Notification of sick leave or absence

2.5 Procedure of gate pass

III Working environment

3.1 Dining facility

3.2 Wash and toilet facilities
3.3 Locker and change rooms

IV Payroll

4.1 Date of salary paid( 5th of every month)

Health and safety
5.1 Role of the health and sefety representatives ad their commitees
5.2 Information on hazards present I the workplace and controls
5.3 Incident reporting procedures, including emergency exit and
equipments.
5.4 Safe storage and use of personnel protective equipment.
5.5 Safe use and storage of hazardous substances, including material

safety data sheets.

5.6 OHS policies and procedures

5.7 Location of fire extinguishers.

5.8 Location of first aid facilities.

VI

Quality Management System

6.1 Introduction of QMS.
6.2 Show & explain the quality policy.
6.3 Explain their departmental quality objectives.
6.4 Show & explain to their related procedure maual.

VII Job information

7.1 Duties and responsibilities of the post.

7.2 Lines of reporting and supervision
7.3 Colleagues doing interrelated tasks
7.4 Procedure manuals
7.5 Introduction of other staff

58

Probation Period
The appointed staff shall undergo a probation period of six months. Even the existing
employees shall undergo a six month training period on a frequent basis so as to update them
and ensure consistency in performance.
After six months of probation period, a confirmation letter will be given to the staff. If they
fail to meet the set standards they will continue as probationers.
4.3.7 TRAINING AND DEVELOPMENT
Training is conducted based on the trainings needs are identified by departmental heads. It
will be held on the basis of individual and organizational needs. Training is given to the
newly appointed trainees to meet the job specification. The human resource department acts
as the mediator between the training department and other departments to train the employees
in the required manner and for the required purpose. Training will be held according to the
training calendar.

Figure 4.6 Types of training

TRAINING

NEW EMPLOYEE

EXISTING EMPLOYEE

ON THE JOB TRAINING

OFF THE JOB TRAINING

INTERNAL TRAINING
EXTERNAL TRAINING

4.3.7 EMPLOYEE MOTIVATION

G.I.auto motivates the employees to achieve quality objectives to make continuous
improvement and to create an environment to promote innovation.
The methods of motivating employees include:
Incentives And Bonus
Educational Loans to Employees Children
59

 Helping For Higher Education

Recreation Activities
Various awards like

Attendance Award
Best Work Men Award
Award For Best Suggestion Through Quality Circle
Best Housekeeping Award
Service Award

4.3.9 BENEFITS OF EMPLOYEES

G.I. auto provides both monetary and non monetary benefits to the employee.

Table 4.5 Benefits of Employees

MONETARY BENEFITS

NON-MONETARY BENEFITS

ESI, PF

AWARD AND CERTIFICATE

MEDICAL CLAIM

GOOD WORKING ENVIRONMENT

ADVANCE, BONUS

FREE LUNCH

SHIFT ALLOWANCE

FESTIVAL GIFTS

WORKERS PARTICIPATION IN MANAGEMENT

Quality Circle
Orientation Program
Control Charts Maintained By Employees
Recording Production
Job Allocation

60

4.3.10 PERFORMANCE APPRAISAL

Performance appraisal is a method of evaluating the behavior of employees in the work spot,
normally including both quantitative and qualitative aspects of job performance. G.I. Auto
has implemented a tracking system for performance appraisal.
Performance is conducted by the head of the departments of all the works once in three
months for the defined major seven key areas.
The pay scale and promotion are decided on the basis of the performance ranking of the
employee
The following are few of the criteria used in deciding the pay scale and promotions of
employees
-

Knowledge about quality objectives

Relationship with colleagues
Knowledge about quality policy
Housekeeping in respective
Areas of work
Knowledge about our customers

- Discipline
- Learning new jobs
- Attendance
- Knowledge about your work
- Knowledge about our products

4.3.11 INDUSTRIAL RELATIONS

a.

HR plays an important role to maintain good relationship between the employees and

b.

the departmental heads.

Frequent meetings are conducted between the HOD and the employees c. Monthly
departmental review meeting is also conducted to make the employees aware of the
departmental performances.

4.3.12 GRIEVANCE HANDLING

Frequent meetings are conducted between the HOD and the employees.
Monthly departmental review meeting is also conducted to make the employees aware
of the departmental performances.

Attendance management
a. The employee attendance management is also carried out HR department.
b. Punch card system for permanent employees
c. Manual attendance management for the contractual employees
The HR department takes care of the following statutory functions also
61

a. Companies holydays calendar making

b. Salary and other remunerationAll of the executives, trainee workers and operators
earn salary on the last working day ofevery month.
Salary structure consists of;a. Basic pay
b. Fixed DA
c. HRA
d. Conveyance & other allowance.

62

4.4 PRODUCTION DEPARTMENT

Production is the activity of creating utilities. This creation of utilities takes place when raw
materials are transformed into useful products. Production is the process of making products.
In this process, the 5Ms i.e. Men, Material, Machine, Money and Management are
transformed into higher valued goods and services. Thus transformation of inputs and values
addition is two basis of production.
Production department plays a major role in deciding the profit of the organization because
its the department which monitors the manufacturing activities. Thus the activities of
production department have to be carried out in accordance with the needed orders. The
activities of all other department thus depend on the production department.

Figure 4.7 Structure of Production department

BOARD OF DIRECTORS

GENERAL MANAGER

PLANT HEAD

PRODUCTION MANAGER

63

4.4.1 PRODUCTS PRODUCED

SUPERVISORS AND
OPERATORS
G.I.auto manufactures the following products

Hexagon nuts
Retainers
Stems
Lamp housing
Mounting bushes
Inlet cup
Pins center stand

4.4.2 PLANT LAYOUT

Systematic arrangement of inputs at right place at right time and in a right condition for
production is known as plant layout.
The plant layout of G.I.auto is designed according to the products produced wherein
machines (inputs) are arranged according to the operations to be performed, hence it is called
as product layout or line layout.
The concept of Division of labour or Specializations is used for mass production and
continuous process. The special purpose machines are used in the plant.

4.4.3 PRODUCTION PROCEDURE

The production procedure of G.I.auto takes place in various stages mentioned as below Process Planning
In this stage, the way of production and design of the product are decided according to the
design of the product prescribed by the customer.
Material Procurement
For any production activity the raw materials are very essential. The materials are procured
by the purchase department with the records at the right time and are also procured according
to the production schedule by the suppliers. The major raw material suppliers of G.I.auto are 64

South India Wire Products

Sarda Alloys
Innovative
Rarewala Engineering Works
Suresh Tubes

The procurement order details are maintained by the stores department, safety stock is
maintained for 10 days and ABC analysis is used for inventory control calculations.
Shop Production
The actual production takes place in the shop floor where the raw materials are converted in
to finished products. Many CNCs SPMs are installed in the shop floor to ensure mass
production with Kaizen implementation.
The various facilities available in the shop floor are;

Turning
Pressing
Welding
Brazing
Thread rolling
Tapping
Grinding

Inward Inspection
The inward inspection of the materials is done for quality and quantity checking by the
quality department in case of raw material for its alloy composition.
Heat Treatment
G.I. auto has over twenty CNCs SPMs built in house that mainly constitutes the process line.
Single price flow using conveyers and cell concept is adopted in the shop floor with FIFO
system of WIP and materials movements, environment and personnel safety standards are
given more importance along with planned training and continues improvement programmes.

4.4.4 PRODUCTION PALANNING AND CONTROL(PPC)

65

PPC is the planning and scheduling department in G I Auto Pvt Ltd. Its plays an important
role in theproper functioning of G I Auto Pvt Ltd. The marketing department communicates
with PPC to handlethe sales orders raised by customers. PPC structure shown below.
Figure 4.8 PPC Sturcture

Input

Process

Custmer schedule

Monthly stock
statement
Buffer stock

Monthly
production plan

Plan
Monthly
Production

Work in progress
status

Schedule
&

Approved supplier
list

Schedule
For

Sub contractor
supply monitoring
record

Output

Supplier

Production
allocation
Monthly machine
loading plan
Monthly sub
contractor
schedule to MPS

Based on order receipt from customer, the marketing dept raises the salesorder and sales
order schedule. Sales Order is then given to PPC.The first sales order for a particular month is
raised 10 to 15 days prior to the month. ThenPPC prepares the purchase schedule and the
manufacturing schedule based on the salesorder.The purchase schedule is given for the
Supply chain management department and the manufacturing schedule is given to the stores
department. PPC manages the entire processwith the help of ERP.In the PPC process, the first
step is sequencing posting. PPC prepare the schedule on theproduction target for the month.
The sequence report is generated in ERP. Based on thisschedule, the monthly production is
scheduled and carried out. (Based on revised sales orderfrom marketing dept, the sequence is
updated.)Based on sequence posting, M.R.P report is generated. The material requirement is
analysed and as per the production request generated by marketing department the M.R.P. is
66

prepared.This is used by purchase dept. PPC also manages the day to day material
requirement for themanufacturing (based on daily production schedule).Daily analysis on the
jobs completed is also done based on the schedule prepared by PPC.Priority wise material
requirement is given to supply chain management by PPC.And skid plan is also prepared by
ERP and based on skid plan, order process is carried out.Skid wise route card process is also
done by PPC.PPC maintain update on the entire customer order process flow. i.e. product
finished production in manufacturing section, in assembly section etc.Route card process is
the process of tracking the work progress in manufacturing section.

Figure 4.9 Work Flow Model

67

RAW MATERIAL INSPECTION

TROP OPERATION

IN PROCESS INSPECTION

TURNING GROOVING

IN PROCESS INSPECTION

TRANSPORT TO PLANT SHOP

INCOMING OPERATION

MOULDING OPERATION

FINAL IMPROVEMENT CHECK

4.4.5 PACKING AND DISPATCHING

68

Finally the finished components are packed and dispatched to the customer. Effective
dispatch can be measured using the below formula
Plant Capacity
Time capacity is subject to changes on account of automation changes in technology such as
change in fixture, change in tools, change in process, deletion and addition of shifts etc.
Change in plant capacity will be monitored on a month to month basis.
According to the change in plant capacity the production capacity also changes. The
production capacity of G.I. auto is very high.

Time Study
Time study is a work measurement technique for recording the time and rates of working for the
element of a specified job carried out under prescribed conditions and for analyzing the data so as to
obtain the time necessary for carrying out the job at a defined levels of performance. G.I. auto has a
well-planned time study technique for work measurement that has helped the organization to increase
its profits and to expand its processes.

Maintenance Process
Maintenance department is an important department the take care of the proper working ofthe
entire plant. The main functions of maintenance department are to make sure that all the
machines areworking properly and the production process carried out uninterruptedly. They
look after allthe issues associated with the machines in the plant (both machine shop and
assembly),electrical and electronic components. The maintenance department also handles
the purchaseof new machines for the plant.The user departments inform the maintenance
department about any breakdown of machinesor equipments using a job requisition format.
The maintenance person attends the complaintson priority and emergency basis after the job
requisition if the break down can be set right bythe in house facility. In case if the break down
cannot be rectified in house the work istransferred to an external agency through purchase
and planning department.When the work is completed, it is collected and after verification it
is transferred to theconcerned department.

4.4.6Quality control
69

As per ISO 8402:1996, quality is the totality of features and characteristics of a product or service that
bares to satisfy the implied needs, quality assurance department will give the assurance to quality of
the product, quality assurance means all planned and systematic actions necessary to provide adequate
confidence that a products are service will satisfy gives requirement to quality
G.I.AUTO has three stages of quality testing that ensures the quality of the production:

Quality Assurance Inward (QAI)

The quality of the incoming raw material is tested by the metallurgy department for its alloy
composition and the accepted materials will be sent to the vendor for further operations. Inward
inspection is done to all the incoming materials by use of the vendors sampling technique which
is as per the standards prescribed by ISO and is stored in the centralized stores of the company.
Rejected batch of material will be sent for rework by the inward inspection department.
Accepted materials will be moved on to the shop floor initial samples inspection report along with
FIFO method.

Quality assurance process (QAP)

Statistical process control method is adopted for the testing the quality of the products in the
production wherein

Components processed are regularly monitored for quality by the process

inspector as per the process layout with sampling techniques.
Process inspector monitors the quality of the component of every two hour the
span of shift.
Control charts are plotted for the same spam of time for critical dimensions.
In case of non conformance the conformance the concerned supervisor will inform
to take corrective actions.
Process will be continued only after corrective action is taken to meet the
parameters specification. After this stage product will be moved to final inspection
room.

Quality Assurance Final

70

Final quality checking is done in the final inspection area where 100% inspection of the production
takes place. Final audit of the outgoing product to customer takes place in this area. Each and every
parameter of the product is testing and quality is assured.
If the product does not possess the optimum quality then it will be sent for rework and only than the
quality assured product will be dispatched to the customer.

4.4.7 STORES FUNCTIONS

Stores functions are one which stores all the material equipments and spares parts etc. which
are needed in this organization for its smooth running.
This stores department is divided into two sub departments they are:
Material stores:
It is sub department of the stores, which maintains the stock of raw materials needed in the
plant like iron metal, oil, tools. This department mainly concerned with storage of 10 days
raw material in the plant. Before this department use to maintain about 1 month storage but it
was reduced to only 10 days storage.
General stores:
It is also a sub department of stores which maintains the stock of general material like
uniform of workers, shoes, glows, cups, spare part of machines etc. These all materials are
stored under Bin system in this department and each item are material will be assigned a
number to which is called a Bin number.
There are about 5,000 items are maintained in this department and all have been
assigned with Bin number. Bin number has 9 digits number which helps in recognizing the
items very quickly. The first 3 numbers in bin number will be given information about which
section, the second 3 digits give information about which equipment and last 3 digits give
information about which item it is.
FUNCTIONS:
They store spares and other material other than raw material. The raw materials are
stored in the production department. The main goal of this department is to receive the
71

material and store them as and where the department demands the material where received
first are inspected. After the materials are issued the material receiving receipt goes for
closing only after they physically check in the stock is valued. The department directly takes
by receiving material receipt codes are given alphabetically and numerically (alphanumeric).
4.4.8 MATERIALS MANAGEMENT
Material Management is an important supporting service in the company in several organizations.
More than 50% of the annual budget is spent on the material use. The material management
department expected to provide this operational convenience with a minimum possible investment in
inventories. The material department is accrued of both stock as well as large investment in
inventories.

4.4.9 INVENTORY MANAGEMENT

Inventories are the stocks of the products of the company & component there of that make up
the product. They serve as a link between the production & consumption of goods. About 60% of the
working is invested in inventories. Therefore it is quite essential to manage if effectively & efficiently.
Inventory management is generally looked after by the purchase, production & sales
department in the business enterprise. Their officials always try to have large stocks of inventories to
facilities production & marketing of products. It naturally requires large amount of investment in
inventories, it is therefore the prime responsible of the financial executive to have a proper
management & control over the investment in inventories. So that it should not be unprofitable for the
business. For this purpose financial management should take care of the maximum & minimum limits
of stock of inventories in the business to have continuity in production process.
But in case of G.I. AUTO it is too different the main raw material of G.I. AUTO is the iron
rods and which can procure over full year. But during the year ending (Jan to April) company find it
difficult in purchasing the raw material as the price changes and the new quotations should be made
for the year. Hence company purchase and stores it in advance as the work flow should not be
interrupted in between. They procure as much as possible which should meet here production level
and which does not interrupt the work.

Types of inventories
i.

Raw Materials:

72

These represent inputs purchased and stores to be converted into finished products in
future by making certain manufacturing process on the same. In case of G.I. AUTO raw
materials are iron rods, oil, lubricant, spare parts and tools.
ii.

Work in Process:
These represents semi- manufacturing products which need further processing before they

can be treated as finished products.

iii.

Finished Goods:

These represent the finished products ready for sale in the market. In case of G.I. AUTO
Finished goods are components of TVSM and BOSCH companies spare parts such as
Precision Auto Turned Components, CNC Machined Parts, Pressed Components and Sheet
Metal Parts, Automotive Components, Sub Assemblies & Assemblies.
iv.

Stores and Supplies:

This represents that part of the inventory, which does not become a part of final
products but are required for production process. They may be in the part of cotton waste, oil
and lubricant, soaps, brooms, lights bulbs etc. Normally they form a very minor part of total
inventory and do not involve significant investment.

73

4.5 IT & SERVICE DEPARTMENT

The IT department take care of the information andcommunication technology matters in the
GI Auto Pvt Ltd plants. There is 5 dedicated staff in the whole G I Auto Pvt Ltd plants. The
IT departmental structure consists of one HOD and & 4 staff. They provide the main IT
related services in the entire organization. It includes IT administration, services, software
updating, system configuration, ERP customization and management, report generation etc.
One IT employee is available in each plant to take care of IT related issues.

4.5.1 Enterprise Resource Planning

All department of G I Auto Pvt Ltd function as a part of ERP, which functions as a root base,
thus interlinking of all departments functions effectively so as to result in a smoother
functioning of the organization. This department deals with the overall working of the
enterprise.
Previously each department functioned as a single non-related entity which resulted in
restricted access of valid documents between departments. This in turn resulted in a
constriction in the working, which was eliminated with the introduction of ERP. It interrelated the department and geve access to the documents of each unit to authorized personnel
even if that particular person is not a part of particular department. For this purpose ERP uses
specialized software, which enables the unit to maintain the record of each department in an
ordered manner on an oracle database in user friendly layman terms, hence enabling every
person with authorization to acess the database. The reports from all departments are
incorporated into the database. Initially a user has to sign in on the database with a user ID
and password provided. He then gets acess to the list of the data from departments. The major
modules covered by ERP in the company are

Marketing/sales
PPC
Inventory
Quality
Production
Payroll
Accounts

ERP modules have a common server in the backend. This helps data sharing more
effective among the entire company. The ERP software is self customized by the GI Auto
74

Pvt Ltd IT department. As per the requirements the modification are carried out. Report
generation for the entire modules is carried out by the IT manager.

75

CHAPTER 5
SWOT ANALYSIS

76

STRENGTHS
The major strengths of the Indian auto component sector to grow globally are as follows 1. Cost competitiveness in terms of Labour and Raw material
2. Established manufacturing base0
3. Qualified and skilled man power
4. Growing domestic automotive industry
5. Manufacturing capabilities with international quality standards
6. High operational efficiency
7. Employees having 10 years experience with multi skill operation.

WEAKNESSES
1. Low investment in Research and Development
2. Limited knowledge of product liability and offshore warranty handling
3. Limited domestic market for various components inhibiting capacity creations.
4. Comparatively poor infrastructure for supply chain and exports
5. Lack of experience in system integration
6. Limited overseas customers.
OPPORTUNITIES
1. The growing need to outsource post-expansion.
2. Huge opportunity in the tier- 1 and tier-2.
3. Higher frequency of introduction of newer models by automakers.
4. Leverage on product engineering expertise to improve the worthiness and exports of auto
component.
5. Acquisition in foreign markets.

77

The strengths & opportunities mentioned above have enabled the growth of Indian auto
component industry in extent of global outsourcing.

THREATS
1. Competition from other low cost countries like China, Taiwan, Thailand etc.
2. Developments of new technologies like fuel cell, hydrogen powered vehicles, which may
affect the auto component industry.
3. Large number of OEMs entering in Indian market may result into migration of talents from
supplier to OEMs.
4. Increase in the cost of new material.
5. Problem regarding retention of skilled workers within the company.
To overcome the weaknesses & threats the best way is that the manufacturers have to remain
competitive and improve growth prospects. The manufacturers have to be innovative with
appropriate R & D budgets. The product specialization and their ability to integrate
operations across several related areas of specialization could be an eventual key of progress.
Domestic manufacturers need to increase their investments in companies in the US and
Europe to go closer to global markets.

78

CHAPTER 6
LIMITATION OF STUDY

79

LIMITATION OF STUDY
There were some limitations in conducting the organization study at G I Auto Pvt Ltd.
1. There were difficulties in obtaining data from executives and managers due to their
busy work schedule.
2. An in-depth study of the company could not be carried out due to shortage of time.
3. The reliability of data used for study is largely depends upon the companies reports
and the information given by executives.
4. The company has the limitation to disclose their financial details, so a detailed
analysis of financial performance of the company is not possible.

80

CHAPTER 7
CONCLUSION

81

7.1 FINDINGS
The following are my findings with regard to various aspects of the company from different
levels in the company
1. From the employees view
A few of them showed dissatisfaction regarding their pay packages.
Their work would be more efficient and enjoyable if they also had certain
facilities such as a canteen or other recreation facilities.
They are also provided with all possible safety measures such as ear plugs and
other handy equipment to protect them from any danger within the factory.
There is a need for a greener environment around the factory so as to nullify
any dangerous emissions from the factory.
They have also been taught about How to treat hazardous substances and are
also aware of renowned processes.
2. From the employers view
The employer is finding it tough to retain highly skilled employees.
The only disadvantage of hiring new employees being lack of speed picking
up the work during the training period and no match in efficiency with the
prior employees who were better skilled.
The employer does make every effort to motivate their employees by way of
giving away awards in the form of monetary/non-monetary benefits.
The employer still finds it difficult to update the technology within the
company due to lack of interest from the employees to updgrade themselves to
a quicker version of the existing technology.
3. From the companys view
The company has a wide production capacity and they also have sufficient
manpower matching to their level of production or even more than that, but,
they are not ready to expand further and are satisfied with their current
position.

7.2 LEARNING EXPERIENCE

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Every student doing a professional course needs to undertake training, organization study or
internship in his respective field, which gives a chance to explore their skills and understand in the
work environment.
The objective of this study is to benefit both the students working as interns as well as the company
for which the students are working. The students get to learn the basics of their education and them
turning int realties, whereas the companies could add value to their services through the creativity and
the innovative skills possessed by the new generation.
The organization study at G I Auto Pvt Ltd, Bangalore has given me the opportunity to gain valuable
industry related experience that would allow me to expand my career options. The guidance,
supportfeedback and useful suggestions provided by my Organization Guide helped me to
successfully complete this Organization Study.

7.3 SUGGESTIONS AND RECOMMENDATIONS

The company may consider providing canteen facilities to their employees.
Company must focus on technology updates to meet the international
standards.
More training and development programs may be adopted for the staff.
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 Regional languages are spoken at the office premises and this acts as a
communication barrier and also causes hindrances in the corporate
communication and hence this must be avoided.
Grievance handling system for employees can be effectively implemented.
Techniques such as job rotation and job enlargement may be adopted to
increase efficiency and interest in work.
There is a need to provide a better working environment for the staff instead of
clubbing it with the production area.
Awards are being given only in monetary mode. This practice can be slightly
improved by taking feedback from the employees about general non-monetary
gifts which may be provided to them.
Since the workforce includes a majority of young people, the company can
include space for recreation.
The employees can be made to understand through constructive feedback
about how they can perform in order to achieve specific goals.
Improving the scientific marketing.
Based on the EHS policy of the company, they have to improve and maintain
the green cover in and around the factory premises.
To continue good relationship with the customer.
The company must consider expansion as its long-term goal since it has the
optimum level of resources

7.4 CONCLUSION
The oganization study carried out in G I Auto Pvt Ltd, Bangalore was successful in achieving
the specific objectives. It helped to familiarize with the organization structure and its
functioning. It also helped to familiarize with the different departments in the organization
and their functions and activities including documentation.
The study helped to understand how the key busiess processes are carried out in an
organization and how information is used in organization for decision making at various
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levels. The study was successful in understanding the extent of technology adoption in the
organization for various functions/activities.
This study helped in improving practical knowledge. This organization study was beneficial
as it helped to gain confidence and awareness.

WEBLIOGRAPHY
Website

www.giauto.co.in
www.acmaindia.com
www.ehstoday.com

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