EXECUTIVE SUMMARY

As part of the course curriculum of degree of Master of Business Administration

of Mahatma Gandhi University I am required to undertake an organisation study
in an organization in second semester. I have done this study in MRF Ltd
Kottayam Unit in Kerala.

MRF Ltd is the most reputed tyre manufacturer in India. MRF is the first Indian
company to compete in the international tyre industry. This rich heritage
prompted me to choose this company for my study. In MRF Ltd during my four
weeks of study I mainly focused on the functioning of various departments and
the overall structure of the organization

The objectives of my study are, to know the tyre industry in general and the
organizational structure of the company, various functioning of the company,
and different departments of the company.

The scope of this organizational study includes a general understanding of the

importance of tyre industry, the functional department of the company,
especially marketing and HR, organization structure of the company and a
SWOT analysis.

The scope of this organizational study includes a general understanding of the

importance of tyre industry, the functional department of the company,
especially marketing and HR, organization structure of the company and a
SWOT analysis.

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 INDUSTRIAL PROFILE

Rubber industry in India

The Indian goods industry is now more than 80 years old. The 1 st factory has
been set up in 1920 at Calcutta. Today the industry consists of 3500
manufacturing units.

The rubber goods industry plays a very important role in the development of
road transport sector. The industry can be broadly classified in to tyre and non-
tyre section. The rubber goods unit consumes three types of rubber; natural
rubber, synthetic rubber and reclaimed rubber. The rubber industry’s
performance in physical term was not up to the mark of some years, but its
financial performance was good. The industry is the third largest contributor to
the nation exchequers by way of duties and taxes.

Tyre is a covering for the outer rim of a wheel. The main feature of rubber tyre
ability to absorb the shock and strain created by bumps in the road; provide a
comfortable ride and protect many kinds of cargos, the rubber in a rubber tyre
supports the weight of a vehicle. Another important feature of their ability to
grip the road.

The pneumatic tyre was invented in 1845 by Robert.W.Thomson, a Scottish

engineer. In 1970 the 1st solid rubber tyre appeared in English. John and Dunlop,
a Scottish Veterinary surgeon improved on Thomson’s invention in 1988.

Tyre is rather a contrast industry especially when its linkage with Indian
economic growth is concerned. There are 22 major tyre companies in the
country, 10 are larger undertaking producing a wide range of tyre including bus
and truck tyres. There are 12 medium sized companies.

The tyre industries were classified under 3 heads;

The 1st generation companies viz: Dunlop and Firestone (New Bombay Tyre
International Ltd) were set up in the last 30’s and early 40’s.

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The 2nd generation companies then come up in 60’s .they are MRF tyres, CEAT,
GOOD YEAR and PREMIER.

The 3rd generation companies that were setup in 70’s .they are JK Tyres,
VIKRANT, APPOLO and MODI tyres.

Indian tyre markets

Market for tyres can be broadly classified or segmented in to 3 categories;

• Original Equipment Market (OEM)

• Replacement Market

• Export Market

Maintain demand is generated by the replacement market where business

volume is high. While the OE demand is a linear function of Automobile
production whose growth in turn is determined by overall economic situation
and the government policy. India is still in cross ply tree age when advanced
countries are in to radial tyres and tubeless tyres.

Though the tyre majors have been twinkling of getting into truck radial segment
but no official moves have been made by the major tyre companies. This point
out that radial tyres are not actually suited for Indian environment.

Tyre industry in India is predominantly dependent on natural rubber as against

synthetic rubber, experts say that the ratio of natural rubber usage to synthetic
rubber could be as high as 80:20 but it is just the opposite in abroad.

Global ranking of Major Tyre Companies (as per Sept.2008)

1. Michelin

2. Bridgestone

3. Goodyear

4. Continental

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 5. Sumitomo

6. Pirelli

7. Yokohama

8. Kumho

9. Cooper

10.Toyo

11.Hankok

12. MRF

13.Oksta

14.Shanagai

15.Chingshi

Indian Tyre Industry-Salient Features

1. Adaptability & absorption

Successful and fast absorption of international technology and

availability of technical expertise and professional to absorb and
implement technological advancements.

2. Innovativeness

Several innovations were introduced to apply international technologies

to manufacture tyres suitable for Indian road conditions.

3. Exports

Sustained exports for over a decade to more than 50 countries. All large
tyre companies are exporting tyres of which 30%exports is to USA.

4. Technology progression

Within a span of 4 decades, technology had progressed as well as tyre

industry had moved from cotton (reinforcement) carcass to high
performance radical tyres’

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 5. Wide product range for diverse usage

From a Moped/Light motor cycle tyre weighting 1.5 kg. To an earth

mover tyre weighting 1.5 tone tyre industries in India, manufactures
them all.

6. Indigenous & ready availability

New vehicle manufacturers while launching as a series of their latest

models have easy access to and ready availability of indigenous tyres of
their respective specification and matching of international standards.

POLICIES OF MRF

QUALITY POLICY OF MRF

It is to maintain market leadership through continuous quality improvement.

To achieve this goal, all the MRF plants and the corporate office shall pay
particular attention to the following;

 Product/process improvements by field/plant performance monitoring and

prompt service to the customer.

 Up gradation of machinery to meet the increasing needs of the customer.

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  Continuous training of all employees in order to acquire necessary skills
and knowledge.

 At the plant level, respective Senior General Manager/General Managers

are assigned the responsibility of carrying out the quality systems by
collaborating with corporate functions.

SAFETY POLICY OF MRF

It is the policy of our company that the Safety and Health of our employees shall
be our first priority.

It is the responsibility of everyone in this organisation, regardless of the position

he occupies, to ensure that everyone in the factory returns home to his beloved
ones without any injury today and every day.

We shall observe this policy not only in letter but also in spirit and offer
“ACCIDENT FREE SAFE PRODUCTION” for the benefit of one and all.
ENVIRONMENTAL POLICY OF MRF is to be manufacturing our products in an
environmentally friendly and safe manner.

To achieve this goal, all the MRF plants, together with corporate office shall;

 Minimize the impact of our manufacturing activities on the environment,

especially the air, water and soil.

 Comply with all applicable regularity requirements.

 Develop environmental performance evaluation procedures for

continuous monitoring.

 Optimise the consumption of resources (water, energy and raw

materials) by minimising wastages, recovering and recycling where ever
possible.

 Up gradation of the machinery and pollution control equipment when

required.

 Train all the employees to perform their activities in an environmentally

responsible safe manner.

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At the plant level, the respective Senior General Managers/General Managers
are assigned the responsibility of carrying out the environmental system by
collaborating with corporate functions.

TRAINING POLICY OF MRF

It helps to provide and develop knowledge, skills and behaviour of our

employees to continuously improve their performance.

To achieve this goal, all MRF plants together with the corporate office shall;

 Identify and document training needs of each employee, through

competence evaluation each year.

 Design and publish training calendar and schedule.

 Provide training periodically based on identified needs and as per the

document schedule.

 Monitor and evaluate training process and outcomes to access and to

decide the next training cycle requirements.

At the plant level the respective Senior General Managers/General managers

and Plant Managers are assigned the responsibility of carrying out the training
activities through Human Resources Department of the plant and corporate
office.

CORPORATE GOVERNANCE

MRF philosophy on corporate governance envisages the attainment of the

highest level of transparency, accountability and equity in all fact of its
operations and all its interactions with its furtherance to the above company has
compiled with the crores.

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Major market players and their market share

Some of the major players in Indian tyre industry are MRF, Ceat, JK industries,
Apollo tyres, Bridgestone India, Goodyear India, Falcon Tyres and TVS Srichakra.

Name of the company Market Share

MRF Ltd. (Market leader) 24%
Apollo tyres Ltd. 21%
JK Tyre & Industries 18%
Ceat Ltd. 13%
Others 24%

OBJECTIVES OF THE COMPANY

The main objective of the company is ‘to attain global standard through
continuous improvement in the quality products and service in order to maintain
market leadership.’ The main strategy of the company in today’s competitive
world is ‘cut cost and win the battle.’

As the number of accidents in similar factories is comparatively more, the

emphasis of the company is ‘accident free safe production’.

MRF Ltd. achieves the objectives by taking the following actions;

• Product/process improvement by performance monitoring and prompt

service to the customer

• Up gradation of all the machinery to meet the increasing needs of

customer.

Continuous training is given to all employees in order to acquire necessary skills

and knowledge and improve the quality of work life.

Vision and Mission

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The vision of MRF is to be a significant global player delighting customers
worldwide and achieve excellence in manufacturing. Its vision is to be a world
class system driven by a team of motivated high performers and achieve
profitable growth. MRF has well defined and clearly quality environmental safety
and health training and Human Resource Policies.

The vision of MRF is to realise their policies and implement the contents there in
letter and spirit. Though MRF is exulting to nearly 100 countries the
manufacturing centres are located in India only. MRF encourages being a
multinational and for this purposes it is starting manufacturing in other Asian
countries like Sri Lanka.

MARKETING

Tyre and tyre related products are sold under the brand name “MRF” and
distributed in domestic markets through sales offices, dealers, and franchisees.
Conveyor Belts are sold under the brand name “MRF Muscle Flex” to customers
directly from Conveyor Belting plant at Arkonam.

The major OEM (Original Equipment Manufacturers) customers of MRF tyres and
re Ford India Ltd., General Motors India Ltd., Maruti, Hindustan Motors, TATA
Motors, Ashok Leyland, Honda Siel, Hero Honda, Bajaj, LML Ltd., Honda Motors &
Scooters India Ltd., Mahindra & Mahindra, Eicher Motors, New Holland, Volvo,
etc. The major Conveyor Belting customers are Cement/Steel/Fertilizer/Thermal
Power Plants, Mines and Ports.

MRF exports tyres and tubes through authorised agents representing countries
such as USA, Canada, Mexico, Brazil, Chile, Australia, Philippines, Bangladesh,
Sri Lanka, Korea, Egypt, Nigeria, South Africa, Ghana, Kenya, Mauritius, UAE,
Afghanistan, Pakistan, Iran, Syria, Bahrain, Qatar, Oman, Lebanon, Greece,
Turkey, Malta, UK, Uzbekistan, etc. MRF conveyor belts are exported to
Australia, South Africa, Europe, Canada, Middle East etc.

COMPANY PROFILE

The drama of the Indian roads is in full blossom. All of the world’s automobile
majors are here. SUZUKI,HONDA,MITSUBISHI&TOYOTA FROM
JAPAN,DAEWOO&HYUNDAI from Korea, GM&FORD from USA,FIAT&MERCEDES
from Europe. For most of these automobile companies MRF is the tyre of their

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choice. MRF tyres goes for 1 st tiement on FIAT UNO, FORD Escort, PEAL Astra ,
HONDA City &FORD Ikon. The 1st DAEWOO Cielo too rolled out on MRF radials.

MRF was established in 1946. The company name is an acronym for “Madras
Rubber Factory”. MRF today is India’s largest manufacturers and market
leader. In a short span of 50 years, it has become one of the largest rubber
companies both worldwide and in the Indian private sector. It is the only tyre
company straddle the sub continent with giant manufacturing facilities.

Raw materials

The main raw materials for tyre are:

• Rubber (Natural or Synthetic)

• Carbon Black

• Nylon Cord

• Chemicals

The tyre industry is a major consumer of the domestic rubber production.

Natural rubber constitutes 80% of the material content in Indian tyre where us
20% is from Synthetic rubber (World Wide this ratio of natural to synthetic
rubber is 30:70). A part from this different type of chemicals is used in tyres.
Locally available natural rubber is an adding advantage for the industry, since it
costs 25% of the total raw material cost of the tyres, where the synthetic rubber
accounts for 14% of the total raw material cost (India imports 60% of its
synthetic rubber requirements).

Companies’ product profile

MRF brands are the market leaders in almost every segment; MRF
brands are,

 Super lug (truck tyre)

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  Shakthi (tractor tyre)

 Zigma (radial car tyre)

Though the years MRF has been ranked No.1 in various segments of the rubber
industry. It is the largest producer of produced retreads and perhaps the largest
Asian today. In the global arena, MRF is an active exporter to as many as 65
countries. It has become India’s largest and the world’s 12 th largest tyre
manufacturing company.

Automotive tyres are the main products of the company;

 Truck tyres-Tube type and Tubeless type

 Light truck tyres

 Special Tyre for defence

 Tyre for industrial application

 Agricultural tractor and tiller tyres

 Off the road tyres-solid tyres and earth mover tyres

Non-tyre products

 Automotive tubes

 flaps

 Conventional tread rubber

 Pre-cured tread rubber

 Vulcanizing solution

 Tyre repair materials

 Conveyor Belts

 MRF metal coat

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  MRF wood coat

 MRF glass coat

The Muscle Man

The corporate ethos is perfectly represented by the brand symbol The MRF
Muscleman- embodying strength, reliability, & durability.

The mere mention of the world “MRF” is bound to bring the Muscle man to the
mind of Indians. The muscle man has evolved in 1964 soon after MRF began
exporting tyres. Over the past 33 years it has evolved from a mere corporate
Mascot to a symbol of strength, reliability and durability. Now the muscle man
grew to become India’s most trusted and well recognised symbol for tyres.

In the 1960s the Indian tyre market was completely controlled by the large
multinational companies. Around this time MRF opened tyre factory at
Thiruottiyur in Tamil Nadu. With that came a task of recognising an appropriate
corporate brand symbol. In this process of developing suggestions for the
symbol, some enterprising employees conducted an informal market survey by
interviewing people from all over the country about their expectations from a
good tyre. But one day a truck driver at a road side Dhaba somewhere in
western India hit upon the rigid idea when he said “a good tyre should have all
the qualities of a pehelwan(strongman). And by this simple statement, the
muscle man was born.

Quality Management System in MRF

The company has a quality assurance department, which was established after
the collaboration with Mansfield tyres USA. Quality is assured through the
process of auditing, reporting and correcting. This includes auditing right from
the purchase of raw materials.

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 AUDITING

PROCESS STABILISATION REPORTING

CORRECTIVE & PREVENTIVE ACTION

Major competitors

 Apollo tyres

 Ceat Ltd.

 JK tyres

 Goodyear Ltd.

 Telco

Subsidiary institutions

 Funskool india Ltd.

 MRF Muscle flex Conveyor Belting

 Product-o-drome

 Paint & speciality coatings

 MRF pretreads

 MRF Pace Foundation

 MRF Power house

 MRF tyredrome

 Devon Machines

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 Achievements of the company

It was late 1946 , a period that was characterised by the indomitable spirit of
freedom , and the “will to win” among Indians A young pioneer called
K.M.MAMMEN MAPPILAI started a small toy balloon manufacturing unit in a
small shed at Thiruvottiyur in Chennai. There were no machines in the unit but it
had an employee with bubbling enthusiasm, innovate ideas and a great vision
he was owner himself.

Any product that could be made from rubber, without machine was produced.
From today balloons to latest cast squeaking toys, industrial gloves and
contraceptive, the list is very long.

1949-MRF established its first office at 334, Tham bu Chetty Street, Chennai.

1952- The first machine (a rubber mill) was installed at the factory and MRF
ventured in to manufacture of tread rubber.

1955-MRF started competing with foreign companies operating in India by

becoming the only Indian company to manufacture superior, extruded, non-
blooming and cushion backed tread rubber

1956- MRF becomes the market leader in tread rubber with 50% share of Indian
market. MRF’s hold on the market was so strong that the foreign companies
started withdrawing from the tread rubber business in India.

1961-MRF becomes a public limited company. MRF entered in to technical

collaboration with Mansfield Tyre Company of USA and a pilot plant for tyre
manufacture was established at Thiruvottiyur.

1963-Full fledged tyre plant and rubber research centre were inaugurated by
Indian’s first Prime Minister Pandit Jawaharlal Nehru.

With the manufacture of tyres MRF started marching ahead, capitalizing on its
strengths, overcoming its weaknesses, exploring all opportunities and
converting every threat in to an opportunity for growth.

1973-MRF launched Indian’s first NYLON car tyre.

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1978-MRF launched Super Lug 78 which later becomes the largest selling truck
tyre in India.

1979-MRF’s turnover crossed Rs.100 crores.

1980-MRF entered in to technical collaboration with BF Goodrich Tyre Company

of USA. With third began a significant exercise in quality improvement and new
product development.

1984-MRF becomes the first tyre to be selected for fitment on Maruthi-800.

1986-MRF won 6 awards for quality improvement from B F Goodrich; pitted

against 20 Tyres Company’s worldwide. It also won the National Institution for
Quality Assurance award in the same year.

1987-MRF becomes the No.1 tyre company in India by crossing the Rs.300 crore
turnovers. Since then MRF has maintained its No.1 position to this date (2005).

1988-MRF place foundation was set up with Dennis Lillie as its director to
nurture and develop the talents of budding cricketers. It concentrated on
developing pace bowlers and within a few years it contributed pace bowlers to
the Indian Cricket Team.

1989-MRF collaborated with world’s largest toy maker, Hasbro International and
launched Funskool India, the most modern toy project in Asia.

MRF collaborated with Vapocure of Australia to produce poly-urethane paint

formulations.

MRF Zigma radials were launched along with MRF World Series Cricket which
was one of the country’s most spectacular cricketing and marketing events.

The 5th unit of MRF for manufacture of tyres and tubes was opened at Medak in
Andhra Pradesh.

MRF tyres drome became India’s 1st tyre company owned wheel care complex.

MRF collaborated with Pirelli to manufacture conveyor belts called Muscle Flex.
The same year MRF brought the world boxing championship to India.

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In this year the company bagged the Visvesvaraya award for the best business
house in South India. It also bagged the Haward business school award for best
corporate performance.

1991-MRF moved in to its own corporate office which soon became a land mark
in Chennai.

1996-In the golden jubilee year the company crossed a turnover of Rs.2000
crores and also set up a new plant at Pondicherry for the manufacture of radial
tyres.

1999-MRF was declared the most ethical company by the “Business World” in its
survey.

2004-The company crossed a turnover of Rs.3000 crores.

MRF Ltd. KOTTAYAM UNIT

MRF tyres Ltd., Kottayam is one of the most modern plants and was set up in
1969 at Vadavathoor, about 7 km from the Kottayam town in the state of Kerala,
a hamlet lying on the outskirts of the Kottayam district. About 10 crores of land
was purchased in Vadavathoor village during 1968 and the foundations stone for
the factory building was laid by late Sri.K.M.Cherian. Availability of intelligent
and motivated labour, natural rubber in large quantity (Kottayam is the land of
3L’s-Latex, Letters and Lakes), cheap power. Tariffs, tax concession and
transportation facilities were the main reason behind the choice of Kottayam as
the 2nd manufacturing facility of MRF.

A factory with an area of 34200 sq.ft. was constructed during the period of 1968
– 1969 and a ban bury(internal mixer) of 3A size with a capacity to mix 10MT per
day was erected and commissioned on 21st July 1969,with a strength of 7
workmen, but presently it is a most advanced technology mixing unit and a fully
fledged manufacturing unit producing truck and tractor tyres.

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The commissioning of tyre plant in 1994 was the beginning of a new era in the
history of Kottayam unit. Initially tractor front tyres were produced and then it
diversified in to passenger tyres, tractor rear and truck tyres of various sizes.
Cement house was also built to prepare various cements and paints required at
tyre plant and also for the production of vulcanizing solution.

Kottayam plant supplies mixed rubber to other plants of MRF and hence with the
increase in demand, it became essential to augment the mixing capacity of the
plant. A new plant exclusively for mixing was built with huge internal mixers
(Banbury’s) which have automatic carbon and oil charging facilities. It houses
two Banbury’s of P270 type and one Banbury of F620 type. With a mixing
capacity of -600 tonnes per day, this is one of the largest mixing units in Asia.

MANAGEMENT

The success or the failure of a company is determined by the performance of its

management. It has to play a major role in functions of such as decision making.
Management of MRF is lead by Mr. K.M. Mammen, son of Mr. Mammen Mappillai
who started this company almost 60 years ago.

BOARD OF DIRECTORS

K.M. Mammen Chairman & Managing Director

Arun Mammen Joint Managing Director

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 K.M. Philip Whole Time Director

TRADE UNIONS

• MRFEU-MRF Employers Union

• MRFEA-MRF Employees Association

• MRFES- MRF Employees Sungh

MRF Kottayam unit has 4 plants;

1. Tube Plant

2. Tyre Plant

3. Mixing Plant

4. PCTR Plant

Production in Kottayam Plant

1. Automotive Inner Tube

2. Automobile Tyre

3. Retarding and repair material

4. Flap

5. Bladder

Products at Kottayam plant

Automotive tyres, tubes, conventional tread rubber, pre-cured tread rubber,

repair materials, vulcanizing solution, flap, bladder, curing bags and solid tyre.

International Certifications for Kottayam Plant

• ISO9001:2000

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 • ISO14001:1996

• ISO TS:16949

• CQC

KOTTAYAM PLANT-FACTS AND FIGURES

Built up area - 6 Lakh sq.feet

Management staff - 252

Regular Work Men - 1115

Casual Work Men - 399

Total finished goods production - 3400 MT/month

Mixed stock sent to other unit - 7000 MT/month

Tyre production - 52000 tyres/month

Tubes, envelope and curing bags total - 263000/month

production
Flap production - 82000/month

Tread rubber production (conventional) - 160 MT/month

PCTR production - 330 tonnes/month

Repair materials - 83 tonnes/month

Vulcanising solution - 32500 litres/month

ORGANISATION CHART OF MRF CORPORATE OFFICE

Board of Directors

Chairman & Managing

19 Director

Joint Managing Director

 Director Marketing

Whole time Director

Director Accounts

Director Engineering

Director Material &

Export Division Director Research &
Development

Director Manufacturing

Manufacturing Units

Thiruvattiyur Kottayam Goa Arakonam Medak Pondicherry

Employee details

DEPARTMENTS

MRF Ltd. gives an insight about the functioning of the departments. Each
department is headed by the General Manager who possesses expertise,
knowledge in the area under his supervision.

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The various departments at MRF Kottayam are;

 Production Department

 Production Planning Department

 Quality Assurance Department

 Technical Engineering Department

 Plant Purchase Department

 Raw materials Store Department

 Shipping (Dispatch) Department

 Industrial Engineering Department

 Safety Department

 Security Department

 Human Resource Department

 Finance and Accounts Department

PRODUCTION DEPARTMENT

In the most of the organisation production is the primary function. Production is

simply means that the raw materials are converted into finished products.
Hence all other functions are support functions. In Kottayam MRF unit
production is carried out in 4 plants. They are;

 Tube plant

 Tyre plant

 Mixing plant

 PCTR plant (Produced Tread Rubber Production)

The following are the main functions of the production department;

1. Planning for production process

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 In each month they prepared a monthly plan about the production in a plant.
Based on the monthly plan given by the central planning, plant planning
department will prepare a simulation plan by dividing the month in to 3
segments of 10 days each. The simulation plan given by plant planning for the
month is taken as a guideline and each plant plans the production for each
process. In the planning process they will considered the availability of raw
materials. Small changes are made in the simulation plan to reduce the number
of sizes running at a time and also to reduce the number of size change-over
with the objective of improving production efficiency.

2. Material order (indent) or receipt

The daily requirements of raw materials are calculated at each plant after
considering the available inventory and the scheduled production for the next
day. Raw material order is prepared by the Raw material Store. The Raw
material Store makes arrangements to deliver the ordered materials at the
plant. The receipts of materials are acknowledged to the Raw material Stores by
production by signing all the copies of the transfer/issue certificates. In case of
in-process materials indent is given in advance (1 to 3 days advance) to the
concerned plants which produce that material. Raw materials Store keep all the
records of the raw material purchased and delivered and also control and
maintain the raw materials in the plant.

3. Processing

Processing is carried out as per the technical specification BSP (Basic Standard
Practice), and the work instruction of the respective department. If the
production process is start only after satisfying the standard qualifications of
raw materials. Once the process is stabilised, the process parameters are
checked and recorded. If any parameter is not confirming to the specified limits,
then necessary correction is made and then production process is continued.

4. Product identification and traceability

The objective of proper identification and traceability is to prevent mix-up of

products and to ensure traceability of products at various stages. The primary

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responsibility to ensure this lies with the production. This applies to raw
materials, in-process materials and finished goods.

There is specific way to identify each material at each stage. For example, in the
case of extruded tubes, details like size, month code, year code, plant code,
date of extrusion, extruder operator code, and ‘Made from imported butyl’ are
printed.

Traceability is ensured in different ways. For example, while extruding treads,

the details of stock (like stock code, date and shift of mixing, batch numbers)
used for extruding those treads are entered in the traceability register.

5. Inspection

The activity of inspection covers raw materials, process parameters, in-process

materials and finished goods. Inspection is done to ensure that the materials,
equipment and storage area are free from any contamination. Proper
identification of the materials, FIFO (First in First Out), ageing (minimum and
maximum), and test status (whether the material is tested and okayed or is
pending for test or is it rejected after testing) are checked. Dimension checks
are done during in-process operations. Visual checking is done on in-process
materials for defects like cured lumps, air traps, wrinkles, improper cutting,
improper splicing etc. Process parameters like temperature, pressure, water
flow, etc. are also checked. Visual inspection of finished product is carried out by
production.

6. Control of non-confirming products

During processing, if any non-conformance is noticed in the product, it is held

with a NCM (Non conforming Material) tag, which is filled up in duplicate with
details like the material that has been held, size/code, defect, quantity held, and
the location where the material is kept. It has separate space for writing down
the disposal and also the disposal follow up.

The red copy is tied to the non conforming material and the white copy is given
to the Production Supervisor who in-turn gives it to technical department for
disposal. The disposal for the non conforming product is given by the Technical
Department (within 48 hours in normal cases) and this is written on the red copy
which is attached to the material.

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7. Corrective and preventive action

Corrective action: - When a non conformity is noticed either in process or

product immediate corrective action is taken to rectify the defect, so that the
process or product is not affected any mistakes.

Preventive action: - Recurring non conformities which are noticed in process

by production, quality, technical or engineering are taken up for discussion in
the weekly Quality Assurance meeting to initiate preventive action in
consultation with the concerned departments. In case of occurrence of non
conforming process or product due to operational lapse, the concerned people
are trained. In other cases, the proposed preventive action is recorded in the
minutes of the meeting and the responsibility of implementing it is assigned to
the concerned departmental person as decided in the meeting. This is followed
up in the subsequent meeting and reviewed for the effectiveness. If the
preventive action calls for a change in procedure/work instructions, this is
discussed in the weekly Quality Assurance meeting and a joint decision is taken
by the department heads.

Structure of Production Department

PLANT PRODUCTION MANAGER

MANAGER PRODUCTION

ASSISTANT ASSISTANT ASSISTANT ASSISTANT

MANAGER MANAGER MANAGER MANAGER
(TUBE (TYRE PLANT) (MIXING (PCTR
PLANT) PLANT) PLANT)

SUPERVISOR SUPERVISOR SUPERVISOR SUPERVISOR

S S S S

WORKMEN WORKMEN WORKMEN WORKMEN

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 PRODUCTION PROCESS

Production is the primary function of the company and hence all other functions
are support functions. In Kottayam MRF unit production is carried out in 4 plants.

Plant 1: Tube Plant

Assistant Manager of production in plant 1(Tube plant) is in-charge of the whole

tube plant. He is entrusted with the responsibility of formulating plans for
manufacturing tubes, co-ordinating the manufacturing activities in the plant and
facilitating the smooth manufacturing of the product.

Production process in Tube Plant

Artificial rubber called butyl rubber is used for manufacturing of tubes. It is

mixed with carbon black and chemicals, and then extruded in various sizes.
After sufficient cooling it is sent for pre-cutting to the required length, value
fixing and splicing. Then it is moved to freezing table for cooling the splice
joined and is shaped on forming ring to the required size. Then it is taken and
kept inside tube curing presses for vulcanization. After the set time the tube is
unloaded from the press and sent for inspection. Then the tubes are deflated
using vacuum and tube core is inserted. These sizes are segregated and packed
as per standards.

Plant 2:-Tyre Plant

25
Assistant Manager of production in plant 2 (Tyre Plant) exercises control over
the entire plant. He is responsible over the attainment of maximum productivity
and in ensuring that the profitability is as per the production schedule laid. Here
various types of tyres are manufactured basically for Trucks, Tractors and
passenger cars.

Production process in tyre plant

Grey fabric is passed through calendaring machine for coating both sides with
rubber. From there it goes to a machine called Fabric Cutter for cutting to
different lengths as per specifications. Steel wires are passed through bead
extruder for coating with rubber and wounded on specific wheels as per
specifications. On tyre building machine, green tyres are made using calendared
fabric, bead, tread etc. Green tyres are vulcanized in tyre curing presses by
using steam heated moulds. After this the tyres are inflated to retain its
properties followed by trimming, inspection and dispatching.

Green Calendaring Cutting Bead

Fabric Making

Inflation Vulcanizatio Curing Tyre

n Building

Trimming Inspection Despatch

Plant 3:-Mixing Plant

The Assistant Manager of production in Plant 3 is in charge of the Mixing Plant.

He is the responsible person for any process that done in the Mixing Plant.

Production process in Mixing Plant

Rubber Dump mill Cooling Metal

mixing 26 skids
Ordinary rubbers is mixed with the Carbon Black, chemicals and rubber process
oils in the specific qualities in rubber mixing equipment called Ban bury. From
there it is dumped into the dump mill and passed through batch of tanks in
sheet form for cooling and stored on metal skids. Samples from each batch are
tested and the batch is certified for use. This compound rubber is sent to tyre
and PCTR plant, Tyre plant and other units of MRF.

Plant 4:-PCTR Plant

Assistant Manager of production in plant 4 controls and facilitates the smooth

manufacturing of its profits.

Production process in PCTR plant

Compound Extruder Cooling Leaf Trucks

Rubber

Packaging Inspection Trimming Vulcanisation

Pre-cured tread rubber is used for re-trading of tyres. Compound rubber is mixed
in mixing mills and extruded to the required size using extruders and passed
through conveyors for cooling. These slugs are stored in leaf trucks for ageing.
From there, it goes for the vulcanization in curing presses. After curing excess
flash materials are trimmed off and go for inspection. Then it is sent to the
stretch-wrapping machine for packing.

Production in Kottayam plant

1. Automotive inner tube:- this component is kept inside the tyre and
which when inflated centers strength and impacts profile to the tyre. The
material used for its production is butyl rubber because of its capability to
retain air inside for a long time.

27
2. Automobile tyre:- this is the basement on which the whole super
structure of automobile rests. Here only conventional or bias tyres of
passenger, light trucks, trucks and farm equipments are manufactured.

3. Re-treading materials:- both conventional and Pre-Cured Tread Rubber

(PCTR) and manufactured here. While the conventional tyre requirements
a longer curing time in the case of PCTR the already moulded bride profile
is kept on the top of worn out tyre and pressurized with the intermediary
of steam.

4. Flap:- This is kept in between tube and the tyre. This serves as a
protector health for the tube from the external changes of the tyre and
also as insulation medium, which filters the passage of the heat from the
tyre to the tube. This is generally used for bigger tyres.

HUMAN RESOURCE DEPARTMENT

Organisation structure of the HR Department

Plant Human Resource

Manager

Manager Human Resources

28
 Deputy
Manager
Training

Assistant
Manager
Welfare

Security
Officer

Family
Welfare Co-
ordinator

Canteen

Time Office

The human resource development is known as the heart of an organization. It

performs a number of activities concerned with the employees of their
organization. It interacts with other departments to ensure effective running of
the company. HR department consist of five staffs, one HR Manager, one
Training Manager, one Welfare Officer, and two Time Office Staffs.

The functions of the Human Resource Development include;

Any employee newly recruited will be exposed to the following areas;

 Introduction about the company

29
  Evolution of the concept of quality and its relevance to the contemporary
industrial production

 Safety

 External competitive environment and organisational culture

 Factory discipline

 Basic process flow in the plant in which they are placed

The following are the various activities being undertaken in HR Department

• Recruitment and selection of employees &General Administration

• Performance Appraisal

• Industrial Relations and Labour Management

• Training

• Contract services

Recruitment, Selection, Placement, Induction and Orientation

In the case of management staff, the functions of recruitment, selection, and

placement is done by corporate HR department. Induction and Orientation is
given by plant HR. This is to align the objectives and goals of the individual with
that of the company, so that the synergy produces benefits to the company as
well as to the individual.

In the case of workmen, selection is done by plant HR department through a

written test followed by an interview. Then they are given induction and
orientation before being sent to the plant for on the job training. Induction and
orientation for workmen is given for one day in which they are given inputs on
the following;

Workers are selected at 100% merit basis. Experience is considered as an

additional qualification. MRF provides the tradition of selecting the relatives of
the existing employees wherever a vacancy arises provided the relative is fit
and suitable for the job.

30
 • Application Blank

• Antecedent Verification

• Selection List

• Physical Examination

• Selection Interview

• Appointment

Training

Training is provided to employees who will help to improve performance, skill

and knowledge and will result in larger outcome and increased efficiency. In MRF
training is a continuous process. Training is provided to improve-knowledge, skill
and behaviour.

Conceptual training is provided for improving the knowledge. Once taught these
are implemented.

Quality training us also provided to teach about importance of quality. Several

activities like brainstorming sessions were used for this.

Safety training is provided to employees to get an idea about safety measures

to be followed in order to reduce unfavourable situation and to reduce wastage.

Usually on the job training is used to train workers and supervisors along with
classroom training.

Initially for new employees conceptual, quality and safety training are given to
make them aware about the nature of work. This training is given for Three
months (classroom). For the first six month after initial training (classroom) the
employee will be treated as trainee. Then on the job training is given. In this
training the senior workers while working give guidance about the way of
performing under the supervision of company supervisors. After the completion
of six months as trainees they are treated as apprentices for the next sixteen
months. Then the next six months they will be on probation. After successful
completion of probation, employees are confirmed.

31
Mode of Training

Training is given to improve the facts of human personality namely Knowledge,

Skill, Behaviour.

• Knowledge Based Training: - This training comprises of a training process

known as conceptual training. In this method, the employees are taught
that they are implemented in the organisation so as to improve the
proper functioning of an organisation.

• Skill Based Training: - This type of training includes mainly technical

training.

• On the Job Training: - this training is usually meant for the men at work
place as well as supervisors. This includes activities, Assignments,
Operation, and Machinery.

• Off the job Training: - This type of training is usually given to all
employees from General Manager to Workmen.

Welfare

Labour welfare is the statutory lode controlled by the Factories Act for the
benefits of the employees within the existing industrial system, working and
sometimes living and cultural conditions of the employees beyond that which is
required by the law, keeping in par with the custom of the industry and the
conditions of the market.

Labour welfare the aims at providing the physical psychological and general well
being of the working population. Labour welfare is carried by the Welfare Officer.
The Welfare Officer takes care of the physical and general well being of the
employees.

The following are the functions;

32
 1. To maintain harmonious relations between the factory management and
workers by establishing contact and holding consultation.

2. To notice the grievance of the workers to the management and act as a

Laison Officer between the management and labour.

3. To study and understand the problems of labour at workplace in order to

help the factory management to shape and formulate labour policies. And
to interpret the policies to the workers in their language.

4. To help the factory management to ask questions relating to the training

of new workers, Apprentices, Supervisors and control of notice board and
information bulletins to further the education of workers and to encourage
their attendance at technical institutes.

5. To advice on provision for welfare facilities such as housing facilities, food

stuff, recreational facilities etc.

6. To promote the relation between the concerned departments of the

factory and workers this will bring about efficient productivity. And to
advice the workers to adapt or adjust themselves to their working
environment.

7. To watch industrial relations in a view by using his influence in an event of

a dispute arising between factory management and workers and help to
bring down settlement by persuasive efforts.

Medical insurance schemes

E.S.I and special medical insurance: - Employees are covered under various
health schemes based on their wage pattern. If it is below Rs: 7500 per month
they are covered under employee’s state insurance. If it is above Rs: 7500 per
month they are put under a special insurance scheme (amount equal to ESI will
be given in cash).

Personnel accident insurance:-Work men are insured to a certain amount for

accidents that may occur while on duty and to a limited amount while off duty.

Hospitalisation insurance scheme: - Both workmen and spouse are eligible

for Hospitalisation insurance scheme.

33
Wages and salary administration

Wages of the workmen is fixed based on the long term agreement. It is paid to
the workmen based on the work done on each day as piece rate system. The
work done on each day is recorded in work sheets and it is routed through time
office to the account section where wages to be paid are calculated and paid.
Wages to be paid for the casual workmen fixed and revised from time.

In case of management staff, salary is fixed by corporate HR. Plant HR co-

ordinates the periodical appraisal of performance which is the basis for salary
revision. Salary for staff is paid on the basis of attendance and this is monitored
by the office which is functions of HR. Time office does the functions of time
keeping, attendance monitoring and up keep of leave records.

Allowance

The workmen are provided Dearness allowances, fringe benefits, Bonuses and
other payments according to the rules and regulations of the company. There
are also overtime wages and attendance bonuses. Overtime bonuses are given
to people a person who normally works beyond their time; such as lunch time,
night shift, etc. Allowances include attendance bonuses. This is also given to
employees working outside factory premises, night shift etc.

Promotion

Promotion means shifting an employee to a position in the same hierarchy. This

may be due to seniority and performance. Promotion depends upon the
parameters such as Seniority, Merit and Suitability of the job etc. For some
promotions a test is also done and an interview is also provided.

Industrial Relations and Labour Management.

The company has very good cordial industrial relations. The two trade unions of
the company are

 MRF Employees Union(INTUC)

 MRF Employees Union(CITU)

The trade union consists of an organisation. They also have a level of hierarchy.
The local leaders of the trade unions are the Secretary, Treasurer, and a

34
Convener. The external leader comprises of President, Vice President and
General Secretary.

The workmen category of MRF is controlled by a Long Term Agreement every

three years. Negotiations and Conciliation between Management and workmen
are made over the table through continued discussions. This is mainly organised
by HR with the help of Industrial Engineers and other departments involved.

1.
2.
3.
4. ACCOUNTS DEPARTMENT

Plant Accounts Manager

Manager Assistant Assistant Manager Officer Officer

Manager Shipping Engineeri
(Raw Plant Engineerin Stores ng
Material Accounts Purchase
Stores)

35
 Wages CostingOf Casher
Officer ficer

Superviso Superviso Superviso Superviso

r r r r

Superviso
r Material Handling
Workmen

Superviso
r

ACCOUNTS DEPARTMENT

This is the one of the most important department of all the companies. Because
it deals all the financial transactions are controlled and managed by the
Accounts Department. An efficient Accounts Department helps the smooth
running of the company. This department keeps account of all the financial
transactions of the company. The accounting period of MRF is from October 1 st
of one year to September 31st of the next year. MRF has a fully computerised
accounting system that facilitates fast operations of its various functions. All the
transactions of productions unit starting from the issue of goods received to the
final documentation is computerised. Funds are obtained for capital structuring

36
from both internal and external sources. The internal sources include capital
reserve, debentures, shareholders and the external sources include banks such
as SBI, Canara Bank etc. The strategy that the company has adopted is to go for
credit transaction and payment will be made with one month time.

Raw materials stores manager

Raw material stores manager is related with the buying issue of raw materials
that for using raw materials. He evaluates and takes decision about raw
materials that is transferred to production and mixing unit. He has the main duty
of testing and Okaying of raw materials. The procurement of raw materials is
done by raw materials stores based on the raw materials required as computed
by the planning department.

Engineering stores department

All the engineering items are stored and issued by the engineering stores.

Assistant manager engineering stores

Manager engineering stores arranges machinery and manpower requirements or

the unit’s. He makes decision about plant layout designing, modification and
flowchart etc.

Offices shipping

The storage dispatch of the finished goods is carried out by the shipping
department. Finished goods are sending to the depots and from there to the
nationwide dealer’s networks .For the overseers marketing the finished products
are sent to exports go down and from there to various destinations all over the
world.

Shipping Officer

His duty to transferring of finished goods and raw materials to the distant office
and to another plant. He engages Lorries for transportation of goods as per the
agreement financial budget. He takes the about the sales tax and other relevant
information to the production department. He checks various allowance and
bonus paid to the employees.

Engineering purchases department

37
This department does purchase of the engineering items. The personal from the
engineering department identify the various items and based on which purchase
made. The items purchased are rooted to engineering Stores Officer engineering
purchase reports to the unit.

Source of finance

• Shareholders fund

• Share capital

• Reserves and surplus

• Loan fund

Application of finance

Investments

Current asset

Lartment at the plant level

• Financial accounts

• Cost accounts

• Wages and salaries

• Sales tax

Financial accounts

This branch deals with all types of cash payments and receipts. This will include
payment for engineering and raw material purchase, petty cash payments,
operation and reconciliation of bank accounts, payment to the government in
the form of taxes and levies, payment of PF, payment of Loan outstanding,
payments in lieu of travel bills of employees, canteen expenses, payment to
contractors, payment of leave travel allowance, medical re-imbursement etc.
Cash receipts in the case of scrap sales and any other receipt will also come
under this branch of accounts.

Cost accounts

38
This branch deals with forecasting, budgeting, analysing and reporting the
income and the expenditure of the company. The budget for the expenditure is
prepared by using standard costing principles and it is compared with the actual
expenditure. Any variation from the budget (whether positive or negative) is
analysed to find the exact reason and it is reported to the top management.

Wages and salary

Computation of wages and salaries are done by this section of accounts

department. Wages of workmen are fixed in the long term agreement and is
calculated on a daily basis depending on various factors like grade, number of
hours worked, the output achieved etc.

Sales Tax

This section handles all matters related to sales tax. A monthly return for sales
tax is filed on behalf of sales depots. VAT (Value Added Tax) system has been
introduced and all matters related to this are also looked after by this branch of
accounts. “C Forms” are issued for purchases from outside the state and “F
Forms” are issued for receipt of goods from depots.

Financial Performance

Two interim dividends of 30% each for the year ended 30 th September, 2005
were declared by the Board of Directors on 21-07-2005 and on 25-10-2005. The
Directors now recommend to the Annual General Meeting the declaration of final
dividend of 140% for the year ended 30-09-2005. With this, the total dividend
for the entire year works out to 200%. The total amount of dividends aggregates
to Rs 8.48 Crores. The directors recommend that after making provision for
taxation and proposed Dividend, the amount of Rs 30.64 Crores be transferred
to General Reserve. With this, the Company’s Reserves and surplus stand at Rs.
749.81 Crore

39
 5. QUALITY ASSURANCE DEPARTMENT
Structure of Quality Assurance Department

Manager Quality Assurance

Quality Assurance Quality Assurance Quality Quality Assurance

in-charg in-charge Assurance in- in-charge
charge
(tube plant) (tyre plant) (PCTR plant)
(mixing plant)

Supervisor Supervisor Supervisor Supervisor

Operators Operators Operators

It deals with quality checking and inspecting, defective analysis, godown

inspection, and defective analysis. Quality is considered as the most effective
tool to improve productivity, to achieve cost effectiveness, to improve
profitability and market share and to remain competitive in the global market. In
the business environment of today, quality impacts not only products and
services but also many other relevant entities such as process, systems, people
and organisation.

Quality of design and quality of manufacture

A low level of quality can be caused by weakness either in the design of the
product, or in its manufacture. It is therefore appropriate to distinguish between
quality of design and quality of manufacture.

Two products which have the same use but which are designed in different ways
can be of different quality of design. There is then a difference in their inherent

40
ability to fulfil the intended use. Quality of design is evident in the specifications
to which the product will be manufactured

A product may confirm in varying degrees to the specification. These varying

degrees of confirmation to the specification will lead to varying degrees of
quality of manufacture.

.Functions of Quality Assurance Department

Quality Assurance Department has the primary aim of customer satisfaction.

Hence its primary duty is to ensure that any customer complaint (which is
actually customer feedback) should be taken seriously and it should be
communicated to all concerned authority. Problem solving tools are employed to
ensure that the problem is solved and error proofing methods are adopted to
ensure that such problems don’t occur again.

The quality system requirements of the customers are collected and all efforts
are taken to ensure that the requirements are met. This is done be employing
statistical process control techniques and by training the operators.

The next function is to improve the profitability of the company by reducing

defects and waste generation. This is done by initiating projects for waste
reduction and forming task forces for close follow up. Specific targets are fixed
in each area for waste reduction and quality improvement and it is done in co-
ordination with all other connected departments.

The main function of quality assurance department is process audit and final
product inspection. This will include monitoring the inspection status of incoming
materials, in-process materials, process parameters and finished product
inspection. Ensuring identification and traceability of all materials is also the
function of Quality Assurance.

Each process and product has specifications and tolerance which are given by
technical department. A document called Basic Standard Practice is also
available which says how the process is to be carried out, what are the ‘do’s and
‘don’ts of each process etc. Work instructions are made available which gives
the specific activities to be performed while carrying out the process.

41
The performance of the products (first quality yield, scrap, seconds and repair
level) are recorded and monitored on a daily basis so that any abnormal
deviation can be easily detected and attacked. Quality Assurance co-ordinates
the removal of scrapped items so that the exact data can be obtained on the
reasons for the scrap and the exact quantity of material scrapped. These data
are used to find out the root cause for the generation of scrap, the various
factors that contribute to varying levels of scrap and the cost to the company
due to poor quality.

Quality Assurance also initiates studies for implementing new systems and
procedures on the principles of continuous improvement. FMEA (Failure Mode
Effect Analysis) is carried out and control plan is also prepared to ensure that
the causes of failure are avoided before they happen. Educating workmen on
quality standards and the consequences of not following quality norms is also
done.

Whenever a tool change (tyre/tube/flap/bladder/PCTR mould change or tyre

building drum change) is done, the relevant parameters are checked by Quality
Assurance and certification is done before commencing production. In such a
case, if it involves time change (curing time change when mould is changed) or
media change (changing from steam cure to air cure and vice versa in case of
tube curing) such parameters are also checked and certified.

Tube plant

Certain categories of tubes require a secondary inspection by QA (after an

inspection by production inspectors) to ensure that no defective tube goes to
the customer. They are tubes sent to Original Equipment customers, tubes used
for off The Road tyres, radial, defence, project tubes, tubes for wheel test and
road test. QA co-ordinates the inspection and despatch of such tubes.

All balances used for weighing oil, polymer and chemicals are checked with
standard weights. Green tube weights are checked at random to find out
whether it is operating at the specified level. If it operates above the specified
level, then the company looses since a higher than required amount of material
is going in to the product and if the weight operates at the lower level, it can
affect the quality of the product.

42
Tyre plant and PCTR plant

Market leader products follow up and performance monitoring is done to closely

follow its improvements. Weekly follow-up of dirty moulds is done for tyre, PCTR
and flap moulds. It is communicated to all concerned and is followed up so that
dirty moulds are removed from production line for cleaning.

Bladder life analysis is done to find out the optimum number of cures that a
particular size of bladder will give. This will be helpful in getting the maximum
utilisation of the bladder with minimum of tyre scrap. The analysis will also point
out any abnormal phenomenon so that the reason for it can be probed and
possible solutions found out.

Whenever a new process or product is introduced, the first 100 tyres are
followed up and the performance is recorded. This helps us to decide whether
any change has to be introduced, any improvements to be made or whether the
same conditions can be continued.

Mixing plant

Raw material godown inspection is done and reports are published. Any follow
up action to be initiated in relation with the observations in RM godown is co-
ordinated by QA. Carbon godown inspection and audit is done to check for
correct carbon usage, FIFO (First In-First Out method), and OK status. All
chemical weighing balances are checked using standard weights. Oil
temperature is also checked.

43
 6. TECHNICAL DEPARTMENT

Manager Plant Technical

Technical In- Technical In- Technical In- Technical In-

charge (Tube charge (Tyre charge (Mixing charge (PCTR

Superviso Superviso Superviso Superviso

r r r r

Operators Operators Operators Operators

44
 TECHNICAL DEPARTMENT

Technical Department at the corporate level carries out R&D activities and the
results of those activities are transferred to the plants. Some of the activities
carried out at corporate technical are new product development, new compound
development, designing and inspection of new moulds, selection and evaluation
of new and alternative sources, selection and evaluation of alternative
materials, finished product testing and analysis, heat engineering and assisting
plants in problem solving.

Raw material Testing

All raw materials are tested and released if they confirm to the specifications.
When the material is received, raw material stores personnel arrange for
collection of samples from the received materials as per sampling plan. The
sample is given to raw material testing lab along with sample transfer
note/visual inspection report.

Raw materials are tested as per BSP (Basic Standard Practice), standard test
procedure and are compared with the specification issued by corporate
technical. If the material confirms to the specification, the material is released
for production. If the material does not confirm to specification, more samples
are tested and released if it is OK. If any of the re-tested samples are not OK,
then the samples are sent to corporate lab and the material is accepted or
rejected based on corporate advice. If the material is rejected, then raw material
rejection note is prepared and the material is returned to the supplier by raw
material stores.

45
Positive recall

This is a process in which raw material/work-in –process materials are released

for production without testing in case of urgency. In such cases, head-plant
technical will issue letters to stores, production and quality assurance with all
relevant details. The wonk-in-process materials and finished goods produced
using that material will be kept properly identified at all stages till the material is
tested and disposals given. Compounds mixed or other units can be despatched
even before testing is done provided the testing can be completed and result
communicated to the receiving plant before the material is unloaded.

In-process material testing

In-process materials are tested by technical as per the plan to check whether
any deviation from the specification has happened either in the material used or
in the process.

Finished product testing

Finished product testing is done both in the plant and at corporate technical
departments. This is done to ensure that the product produced confirms to the
required standards. In case of tyres, ply adhesion, mounted tyre dimension
(after mounting the tyre on the rim), and cut tyre analysis are done in the plant.
For PCTR and Flap, cured dimensions and weight are checked. De-mattia and
tensile tests are done on cured tubes.

Issue of specifications

Specifications are issued from corporate technical and this is used as a guideline
to issue plant specifications. Based on the corporate specification, fine tuning is
done to adopt the specification to the plant processing conditions by trial and
error method and from experience.

Process control

Process control is effected by surveillance checks or tests conducted regularly.

The data generated during tests and surveillance audits are used to control the
process. Changes are made if required in the specifications to achieve
processability targets, the changes are documented through plant change
letters.

46
If there is any problem, the process/product will be analysed for variations in
raw material, or process conditions. Any deviations found will be corrected or
alternative source of raw material will be tried. Process will be repeated to check
whether it is OK.

New product introduction

Whenever a new product is introduced, a TPOR (Technical Programme Opening

Report) is received from corporate technical along with corporate specification,
project schedule and new size production plan. Based on the TPOR, a micro plan
will be prepared by Head-plant technical and it will be approved by the
originator of TPOR. This is then given to the concerned technical in-charge who
prepares the activity plan. Plant specification is generated based on the
corporate specification. Trial production is scheduled and products are
manufactured under follow up.

Mixing of Cements, Lubricants and Paints

Mixing of Cements, Lubricants and Paints are done in cement house under the
direct supervision of technical department. Simulation plan is received from
plant planning for PCTR solution and vulcanising solution. Monthly requirement
of cements and paints required for consumption within tyre plant is calculated
from monthly simulation plan.

Monthly stock requirements are calculated from the simulation plan and the
quantity of stock required is communicated to mixing plant. Raw material indent
is given to raw material store. Mixing, testing and releasing of cements, paints
and lubricants are done as per the documented procedure. If properties are OK,
then the material is released. If the properties are not OK, then the non
conforming material procedure is followed to dispose off the material.

Finished product re-classification

Finished products which do not confirm to fist quality norms are kept separately
and are jointly inspected by production, technical and Quality Assurance. Based
on joint decision, the material is either sent as seconds, repaired or scrapped.

Tool inspection

47
Tool inspection means inspection of any mould (Tyre, Tube, PCTR, Flap, Bladder,
Envelope, Curing bag etc.) or tyre building drum. For new size moulds, plant
technical does the mould inspection based on the drawing. After inspecting the
new size moulds, plant technical will inform engineering to OK or reject the
moulds. In case of non-conformities, plant technical is authorised to release the
moulds conditionally based on joint inspection with production, and quality
assurance, provided corporate approval is received for the production of a
definite quantity or for a definite period. In case of regular size
mould/drums/bead rings/PI rims, plant technical does the inspection based on
inspection certificate or test report.

Tool change

Whenever there is a tool change (mould changes in case of tyre, tube, PCTR,
flap, bladder, air bag and envelope) the concerned specification is given by plant
technical department. In case of a new size tool, it has to be Okayed by
technical before being put in production.

Design change process

Design change is first introduced through a TPOR (Technical Programme

Opening Report)or a TA(Technical Authorisation). The necessary specification,
formulation, drawing and tools are arranged. A micro plan is prepared whenever
TPOR is organised. The micro plan is approved by the originator of TPOR.

Necessary specifications are issued and proper communication is given to

production and Quality Assurance through trial intimation letter. All the relevant
processing parameters observed while the project is being done will be compiled
and sent to the originator of the TPOR. The final design review, verification and
validation will be done by the originator of TPOR.

Heat engineering

Heat engineering is a process by which we arrive at the curing specifications

and fix cure time. Validation of cure time is also done periodically to find out
whether any variation has occurred compound properties which necessitates a
change in cure time. Blow point study and thermocouple study are normally
used as tools in heat engineering.

Control of non-conforming product

48
It is the responsibility of technical department to dispose of the non-conforming
materials in a suitable manner. Non-conforming materials are tied with a red tag
(Non-conforming material tag) which contains all the relevant details like the
MRF code of the held material, quantity, reason for holing, date and shift of
production, date and shift of holding etc.

Technical in-charge reviews the non-conformance and takes a decision on the

method of disposal and this is recorded on the conforming material tag. The
disposal is then followed up by production.

7. ENGINEERING DEPARTMENT
Structure of engineering department

Plant engineering Manager

Manager,
Electrical Civil Engineer Manager,
maintenance plant Mechanical
(Tube, Tyre, 49 Maintenance Plant
Mixing, PCTR) (Tube, Tyre, Mixing,
PCTR)
 Supervisors Instrumentation Supervisors
Engineer

Electricians Mechanics

8. ENGINEERING DEPARTMENT
The department comprises of engineers, mechanics, electricians and
technicians. The mechanical, electrical instrumentations, civil and environmental
engineering wings come under this department. The main functions are new
machinery lay-out preparation, erection and commissioning of new machinery,
preventive maintenance, breakdown maintenance, condition monitoring and
over hauling of machinery and other related equipments.

Erection, commissioning, operation and maintenance of utility items like

generator, boilers, compressors, pumps, freezer lines and cooling towers and
maintenance of material handling systems like lift, hoist, chain block, gantry and

50
forklifts are done by engineering. The maintenance of equipments at pump
house and training centres are also done.

Mechanical Maintenance

Preventive maintenance: - All equipments that need preventive maintenance

are listed out. It is ensured that equipment history and manuals are available for
all the machines. A preventive maintenance schedule is prepared after a careful
analysis of break downs in the machines and based on the personal experience
of the maintenance personnel. The annual maintenances schedule thus
prepared is divided into weekly schedules.

Preventive maintenance schedule for the particular week is taken and the
necessary materials, tools, manpower and spares are arranged. Necessary
clearances are obtained from planning and production (for production
equipments) and the machine is released for maintenance. The scheduled
maintenance activities are carried out based on work instructions and
experience. Then the machine is checked and handed over to production.

Based on the number and nature of breakdowns in each machine during the
year, the preventive maintenance schedule is reviewed and a new schedule is
prepared for the next year.

Breakdown maintenance: - the defective machinery is identified either by

production or by engineering and a maintenance request is generated. In case
of production detecting the flaw, production raises the maintenance request and
in the case of engineering detecting the flaw, engineering raises the
maintenance request and arranges for the tools, maintenance personnel and
spare parts. The machine is then released for maintenance. The required
maintenance jobs are carried out and the machine is thoroughly checked. If the
machine is OK, then it is handed over to production. Otherwise necessary
corrections are again done. Every month, down time analysis is done and
permanent corrective actions are initiated in case of recurring failures.

Mean Time between Failure (MTBF) and Mean Time To Repair are the measures
adopted to track the improvement.

Other jobs (mechanical)

51
A part from preventive and break down maintenance the following jobs are done
by mechanical engineering.

• Condition monitoring and planning for preventive maintenance.

• Vibration analysis, wear derbies analysis, clearance recording,

temperature monitoring etc. for machinery.

• Carrying out activities for the compliance of quality parameters

concerning equipment functions.

• Planning and carrying out opportunity maintenance.

• Energy conservation activities.

• Generating purchase requisition of engineering materials, inviting

quotation, approval of quotation, audit local and imported spares,
procurement, inspection and approval. Making drawings of spare parts
and finalising specifications whenever required.

• Prepare maintenance budget and work on cost optimisation.

• Vendor development to carry out maintenance related jobs.

• Maintain equipment data, machine history, breakdown analyses,

maintenance records and material procurement data.

• Job allotment and bills settlement of contract workmen engaged in

engineering jobs.

• Issuing safety permits and supervision hot work, working at height, work
at a confined space, excavation and usage of portable electrical
equipments.

• Erection, commissioning and maintenance of storage and dispensing

facilities for process oil, furnace oil, diesel and solvent.

• Maintenance of facilities for filtering, purification and storage of drinking

water.

52
Tool inspection (mechanical):- Whenever moulds, PI rims, bead rings,
building drums etc are received, engineering stores will intimate engineering
department. For new sizes of moulds, engineering informs Plant Technical
Department for branding checks and the branding are checked based on the
drawings. In case of regular sizes, inspection is done based on inspection
certificates or test report and is okayed or rejected as the case may be.

Tool (Mould) change

Whenever a mould change is required, planning gives a request to production

and in-turn production gives the request to engineering. Engineering carries out
the mould change operation. The first production inspection is done and the
mould change is certified by engineering, production and quality assurance
before the mould is released for production. If it is not OK, engineering will do
the necessary corrections and submit it for certification again. Whenever the
mould becomes dirty and needs cleaning, quality assurance intimates
production and production intimates engineering. Then the mould is removed
and sand blasted (cleaned) before being put in to production again. Before
removing the mould form the press, last tyre inspection is done to check
whether there is any damage to the mould. If there is any problem, it is
corrected before being put back in to production line. Any repair carried out on
the mould is recorded in the mould history card.

Change of tyre building drum also follows a similar procedure.

PCTR mould change is done by production workmen and any major problem is
attended by engineering. Flap mould and tube moulds are also changed by
engineering by following similar procedures.

While mould changes and drum changes are done by mechanical engineering,
electrical settings like time setting in tyre curing, light setting in case of tyre
building drum etc are done by electrical.

Tool management

All moulds and drums will be identified and the master list will be maintained by
mechanical engineering department. Master list will contain identification
number, size and quality. Drum and mould will be stored in respective area.
Preventive maintenance is carried out as per the Process Module “Equipment

53
Maintenance”- preventive. Finished product from the running mould will be
inspected by production\ QA for appearance. If appearance is bad, production
will take up with Engineering for clearing \ repair. Mould \Drum repair carried out
is entered in the history card.

Boiler and allied systems

MRF Kottayam unit has two boilers of 15 tonnes per hour capacity and one boiler
of 20 tonnes per hour capacity. All the boilers come under the IBR (which means
that they have to comply with Indian Boiler Regulations). Hence any major work
done on these boilers have to be done after getting permission from the
factories and boiler inspectorate.

The water that is sent in to the boiler has to be purified to avoid corrosion,
pitting and scale formation inside the boiler. The water is first sent in to a
clarifier to remove colloidal impurity. Then it is passed through a pressure filter
for filtering any solid matter. It is then sent in to softener plant to remove the
hardness of water. Water is then sent to a deareator to remove the nascent
oxygen.

The treated water sent in to the boiler is converted in to steam which is to be

sent for heating purposes. The steam produced is measured in Tones per Hour.

Electrical maintenance

MRF-Kottayam unit falls under the EHT(Extra High Tension) consumer category.
All consumers who use 66KV and above are included in this category. The
incoming supply for our unit is 110KV. Normally we get power from Pallom sub-
station but we have a provision to get supply from Pala sub-station also in case
of emergency. The total connected load of our unit is roughly 30000HP. The
maximum demand is 10000KVA.

For backup power supply, we have 3 generators of 1000KVA each and one
generator of 5000KVA capacity.

Erection and commissioning of new machinery (Electrical)

In case of erection of new machinery, the following procedure is followed;

54
A scheme is prepared with input information from corporate electrical. The
required load and existing capacity is verified and viability or alternate sources
are studied. Work schedule is prepared by prospective contractors and
submitted along with their quotation.

After verifying whether the contractor is verified to do the job, contractor is fixed
and work order is given to him. A schematic diagram as per the standards of
electrical inspectorate is prepared. Then is forwarded to electrical inspectorate
and they in-turn scrutinise the proposal and intimate any changes to be
incorporated. When this is done, initial approval is obtained from electrical
inspectorate and work commences. After the election is over, electrical
inspectorate is informed and an inspection is done by them. If the conditions are
satisfactory then a safety certificate is issued which states that the system is
safe for energisation. The machine is to be charged only after all these
formalities have been completed. All documents related to the above process
have to be maintained.

Any changes in the load requirement or usage should be promptly

communicated to the electricity board but does not require any sanction if the
total load remains within the contract load. Otherwise prior sanction has to be
obtained. All protection relays should be tested and certificates maintained
every 2 years. Periodic calibration of energy meters, and yearly electrical
inspection by Electricity Board will be co-ordinated by electrical engineering.

Preventive maintenance (Electrical):- All equipments that needed

preventive maintenance are listed out. It is ensured that equipment history and
manuals are available for all machines. A preventive maintenance schedule is
prepared after a careful analysis of break downs in the machine and based on
the personal experience of the maintenance personnel. The annual maintenance
schedule thus prepared is divided in to weekly schedules.

Preventive maintenance schedule for the particular week is taken and the
necessary materials, tools, manpower and spares are arranged. Necessary
clearances are obtained from planning and production (for production
equipments) and the machine is released for maintenances. The scheduled
maintenance activities are carried out based on work instructions and
experience. Then the machine is checked and handed over to production.

55
Based on the number and nature of breakdowns in each machines during the
year, the preventive maintenance schedule is reviewed and a new schedule is
prepared for the next year.

Breakdown maintenance (Electrical):- The defective machinery is identified

either by production or by engineering and a maintenance request is generated.
In case of production detecting the flaw, production raises the maintenance
request and in the case of engineering detecting the flaw, engineering raises the
maintenance request and arranges for the tools, maintenance personnel and
spare parts. The machine is then released for maintenance. The required
maintenance jobs are carried out and the machine is thoroughly checked. If the
machine is OK, then it is handed over to production. Otherwise necessary
corrections are again done. Every month, down time analyses is done and
permanent corrective actions are initiated in case of recurring failures.

Mean time between failure (MTBF) and Mean time to repair (MTTR) are the
measures adopted to track the improvement.

Instrumentation

A master list of all the instruments which have to be calibrated is prepared by

instrumentation engineering. All the instruments are given unique numbers so
that it is easy to trace and track the instruments for calibration. A software
programme is prepared in which the equipment number, description, last
calibrated date, frequency of calibration etc. are fed. From the software,
monthly list of equipments to be calibrated is generated and the instruments are
calibrated as per work instructions and standard calibration procedures. Most of
the instruments are calibrated in-house while some of the instruments are
calibrated by external agencies.

Calibration sticker is pasted on the instrument showing the date of calibration

and the due date for calibration. Calibration report is prepared for all calibrated
instruments. Calibration certificate is obtained for instruments that are
calibrated by outside agencies. If any instrument shows an error or deviation
beyond acceptance level then the user is informed about it. The correction
factor to be applied is recorded and intimated.

56
All the balances weigh bridges are to be certified by government agencies
before commissioning (original verification) and re-verification is done every
year. This is ensured by instrumentation.

Civil Engineering

Civil engineering department does the work of preparation of project proposals,

drawing and estimates as per requirements for construction and extension of
new factory buildings, equipment foundation, plant offices(aluminium partitions
and false ceiling) construction of cable and pipe line trenches, construction of
roads, storm water drains and site development work (using mechanical means).

Laisoning with government agencies and local bodies for getting approval of
building plans and permits is also the function of civil engineering. Projects are
executed on item rate contracts. Finalisation of contract rates and issue of work
orders are done by civil engineering department. Supervision and providing
technical support are done along with the job of recording the work done, taking
measurements and check measuring contract bills.

Maintenance of all civil structures is the function of civil engineering. Periodic

repair of concrete floor, A/C sheet roofing and valley gutters, maintenance of
plumping and sanitary fittings such as toilets, washing facilities etc. de-silting of
storm water drains, and annual re-painting of buildings (white washing and
colour washing) are the maintenance activities.

Work permits are issued to the workmen to ensure their safety. These are done
after carefully checking the conditions. The following permits are given- height
permit for working at a height above 3 meters, portable electrical equipment
permit, confined area work permit, excavation permit and hot work permit. Once
the work permit is given, proper supervision is to be ensured.

Environmental Engineering

This branch of engineering is mainly concerned with monitoring of factors which

affect environment (as a result of manufacturing activity) and finding ways by
which they are minimised or eliminated.

Water pollution, air pollution and sound pollution are the main factors that come
under the preview of environmental engineering in the present context.

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Water treatment: - Effluent water is sent into anaerobic digester (where it
does not have any contact with air). Here 85% to 90% of suspended solids settle
down to form the sludge. The water from which suspended solid are removed
are then sent to an aerator and clarifier where 90% to 95% of suspended solids
are removed. This is then chlorinated and it is called treated water. Treated
water is used for roof cooling and for irrigation. 300 kilo litres of water are
treated per day in this process. Another 300 kilo litre of water is treated per day
using a parallel process which is as follows-effluents are sent to anaerobic
digester where 85% to 90% of suspended solids settle down. Later it is sent to
SAFF (Submerged Aerated Fixed Film) tank where a bio film is developed on PVC
media. Diffusers provided below the media aerate the systems. This leads to a
reduction of 90% to 95% of suspended solids. It is then sent to a parallel plate
separator tank where the suspended solids are further removed. It is then
chlorinated and used for roof cooling and irrigation.

A wet land is also created on a trial basis where the effluent water is aerated by
the roof of a special type of reed (plant) which degrades the organic matter and
thus purifies water. The capacity is 20 to 25 Kilo litres of water per day.

Air Pollution

It is being monitored by engaging and outside agency. Particulate matter in air

is measured and compared against standards of permissible levels. To control
air pollution they have provided their ban buries used for mixing rubbers and
chemicals, with big filters(pulse jet and shaker type) the dust-laden air is passed
through shaker type filters. The dust is trapped o n the bags and the clean air is
gone out. These bags are shaken with a leaver at periodic intervals is dislodged
the dust from the bags, the dust is collected in a hopper and discharged. In
pulse jet system, the bags are cleaned by a brief burst of compressed air at
programmed intervals of time.

Sound Pollution

It is measured in terms of decibels and compared with the standards of

permissible levels. This is done at specified spots twice a year.

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 9. INDUSTRIAL ENGINEERING DEPARTMENT
Structure of Industrial Engineering Department

Plant Industrial Engineering

Manager

Industrial Engineer Assistant Manager Enterprise Resource

Planning Planning (ERP)

Supervisors

Workmen

10. INDUSTRIAL ENGINEERING DEPARTMENT

59
The main function of this department are standard fixation, plant layout
modification and designing, machinery and manpower requirement study,
auditing of production calculation and pollution control.

MAJOR ACTIVITIES

 Conducting studies for fixing Standards and Crew Strength in all areas.

 Negotiating with Unions for setting standards.

 Participating in discussions for settling labour disputes.

 Manpower requirement assessment.

 Factory Layout planning.

 Expansion Project Co-ordination.

 Resource Planning- Manpower, Machinery and Equipments.

 Design of Wages system and incentive monitoring.

 Long Term Agreement related works.

 Calculation of Chairman’s Awards.

 Calculation of Production Bonus.

 Preparation and publication of Management Information Systems (MIS)

Reports.

 Special Studies like benefits and feasibility of outsourcing, relative merits

and demerits of different methods of manufacture etc.

 Computation of machine utilisation.

 ERP (Enterprise Resource Planning) Activities :- Maintenance of leased line

connectivity between factory and head office and other plants,
maintenance of network connectivity in all areas of the plant,
administration of local e-mail service, maintenance of computers, printers
and other accessories.

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 EINGINEERING STORE

This is a place where the engineering spares, consumables and new equipments
are received and stored before being delivered to the user point. The minimum
inventory level and re-order level are specified for each material based on the
frequency of requirement, availability, lead time to procure, cost, storage
capacity etc. the minimum inventory levels are checked and purchase
requisition is raised for the required items. The ordered materials are received
at the gate by the security personnel if it is accompanied by the purchase order.

‘Goods passed in/out’ stamp shall be put on the Delivery challan/Invoice during
inward entry by the security. When the materials arrive at stores the delivery
challan/Invoice is checked for the ‘Goods passed in/out’ stamp. Verification of
documents is done to confirm whether the quantity mentioned in the purchase
order and the actual quantity mentioned in the delivery challan/invoice match.
Then the materials are unloaded in engineering store or at the respective plants
where it is to be used. Physical verification of the received material is also done,
for quality and quantity.

The material is identified by GAE (Goods Arrival Entry) number. Information is

passed on to purchase department and vendor on Excess/Shortage/Rejection of
any material with a copy to accounts department. Excess material is sent back
and shortage quality if any is procured forms the vendor.

In case of engineering materials, the concerned indenter is informed to take

delivery of the material after proper inspection. The inspection of moulds,
drums, filler rings and rubber products are also done by Engineering. GRN
(Goods Received Note) is prepared if the material is accepted. Rejected
materials are sent back to the vendor on information from purchase with
intimation to security.

61
The okayed material is kept in the storage area and is issued as and when
required. Engineering store is also does the job of sending materials to
vendors/workshops for repair based on Engineering indent. A copy of the
requisition is sent to purchase for preparing work order and gate pass copy is
issued to security. Receipt of material after repair is cross-checked with DC
(delivery Challan)/WO (Work Order) copy/GP (Gate Pass) copy and entered in GP
list and issued to indenter. All transfers to other plants are based on Material
Transfer Note from concerned areas. A copy of IPTM (Inter Plant Transfer Memo)
is sent to Accounts/Security department.

RAW MATERIAL STORES

Raw material stores will receive a copy of the raw material requirement for the
month which is prepared and sent by plant planning. This is also sent to central
planning and central purchase by plant planning. Based on the requirement,
central purchase arranges for procurement of materials and issues a delivery
schedule to the plant. Delivery schedule is the schedule by which the supplier
will release the specified quantity of material at the specified dates to the plant.

Raw materials, consumables, fuel etc are received at the factory gate in line
with the delivery schedule and purchase orders. The documents are verified to
ensure that the materials are from approved sources and the correct quality as
ordered is delivered.

Weighment of the load is done. GAE (Goods Arrival Entry) is made and the load
is re-directed to the unloading point through the security department. The
unloading point is usually the raw material goes down, but sometimes the
materials are unloaded at the plants where it is consumed. In case of fuel, oil
etc. it is unloaded at the storage area.

At the unloading point, visual inspection is carried out and then the material are
stored with proper identification tags showings the primary status of the
material (Hold \Pending for test). Each material has a specified storage and it is
placed in that storage area.

62
Sample transfer \visual inspection report is prepared and samples are collected
for testing as per the documented sampling plan. The sampled bag is identified
and the sample is sent to technical department for testing. GRN (Goods
Received Note) is prepared at this point.

After testing the samples, Technical department informs the test result through
the material releases \ rejection\hold note printed at the bottom portion of the
sample transfer\visual inspection report. Based on the test result green colour
sticker captioned “OK” is affixed if the material is OK, Red colour sticker
captioned “REJECTED” is affixed if the material is not fit for use and ORANGE
colour sticker captioned “HOLD” is affixed if it needs further tests to arrive at a
concrete decision.

11. SAFETY DEPARTMENT

Important terms and definitions

Accident: - Accident is an unintended, uneven occurrence resulted from and

during the course of work resulting in bodily injury or death of affected persons
or damage to properties or both.

Safety: - Safety is the systematic way of eliminating the causes of accident. It

is based on the principle that does not happen and are caused. In other words,
all accidents have causes and elimination of these causes will eradicate the
accidents and as well.

63
Unsafe Act: - An action, which may cause an accident to self or others or
results in damage of properties or both. Statistics reveals this to be 85% of total
accident causes.

Unsafe Condition: - A situation, which may cause an accident to any one or

result in property damages or both. Statistics reveals this to be 15% of total
accident Causes.

MRF has a well defined SAFETY AND HEALTH POLICY which is as follows.

It is the policy of our company that the SAFETY AND HEALTH of our employees
shall be our FIRST priority. It is the responsibility of everyone in this
organisation, regardless of the position he occupies, to ensure that everyone in
the factory returns home to his beloved ones without any injury today and every
day.

We shall observe this policy not only in letter but also in spirit and offer
“ACCIDENT FREE SAFE PRODUCTION” for the benefit of one and all.

Implementation of this policy

At Kottayam plant, our General Manager is responsible to implement this policy

at unit level. This responsibility has been further re-delegated to Department
Managers or Department-in-charges (at Department level), Plant Managers or
Plant-in-charges (at Plant level) and Shop floor Officers, Supervisors or
Assistants (at Shop floor).

Procedures and guidelines

Necessary procedures, Rules and Guidelines for the effective implementation of

this policy, without prejudice to the statutory requirements, are formulated by
Chief Safety Officer and Plant Safety Officer. They will also render necessary
advice and assistance to all Management Staff in the effective implementation
of this policy at respective Sections, Plants, Departments and the Unit as the
whole.

PREVENTION (of Accidents)

I. Training

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 Training will alleviate ignorance on Safe/Standard work practices and will
enhance Safety. Training will include

• Induction Training on Basic Safety aspects

Induction training will cover general safety procedures, safety rules

and other guidelines. This will also cover the proneness of a factory
atmosphere to accidents as compared to outside world, general
safe practices and safety precautions to be followed on dangerous
machines. Induction training will also brief on safety devices on
machines and personal protective equipment.

Safety officer will be the faculty for Induction Training (on Safety).

• On the job Training

Along with the points on specific activities related to the nature of

work of the new Employee, this training should cover aspects on
applied safety related to the specific machines and specific section.
Shop Floor Officer/Supervisor will be the faculty for this training.

II. Enforcement of Safety Rules and Guidelines

This is regarded as one of the most important area of Accident

prevention. This is being done by closely monitoring the activities of the
subordinate staff or workmen in the respective Sections, Plants or
Departments to prevent any unsafe act or safety violation.

This responsibility has been assigned to the respective Shop Floor

Supervisor or Officer (at shop floor level), Plant Manager or Plant-in-
charge (at plant level), Department Manager or Department-in-charge (at
Department level).

The tool used for this is Job Safety Instructions which has to be imparted
to subordinate before and during the course of work.

III. Safety Audit

Being done by Safety Officer or Chief Safety Officer (during his visit),
gathers useful information on Unsafe conditions, Unsafe acts and on the

65
 level of enforcement of Safety Rules and Procedures which they
immediately bring in to the attention of the respective staff\Management
staff for corrective action under intimation to Unit Chief. Plant Safety
Officer will also assist the staff\ Management staff in the corrective action,
if required.

IV. Corrective and preventive action

Unsafe acts and unsafe conditions which are not rectified will be
discussed in Safety Committee Meeting. The decision of the meeting is
regarded as final and binding on this entire unit.

In addition a detailed presentation on the analysis of accident is made in

this Meeting by Safety Officer.

A total analysis of accidents of the previous month is carried out in

Monthly Quality Meeting also.

V. Safety Awareness Promotional Activities

Boards have been displayed at all conspicuous points. Safety promotional

literatures are being released to increase awareness among employee.
Safety competitions are conducted during Safety Week Celebrations.

SAFETY RULES AND GUIDELINES

1. General

• Every employee has to understand that he can do more for his own
safety.

• Only qualified and experienced hands can be employed on a job.

• It is the responsibility of each employee of this organisation to

ensure that the men working under them follow relevant Safety
Rules and guidelines.

• Instructions have to be clearly understood and to be clarified then

and there.

66
 • Employees have to use Personal Protective Equipment when and
where required inside the factory.

• Employees should not come for work after consuming liquor, drugs
etc.

• Cautionary boards, sign boards etc., positioned in the factory have

to be given due recognition and adherence.

• Do not use compressed air for cleaning dress or body.

2. Fire Safety

• Smoking is strictly banned within the Factory.

• Nobody shall tamper with any fire fighting equipment.

• Each employee has to know the properties of solvents that can

cause fire and take precautions as and how suggested.

• Follow the safe procedures to handle Gas cylinders.

• Use flashback arrestor for Gas cylinders.

• Do not use L.P.G cylinder for Gas cutting.

3. Electrical Safety

• Only authorised electrical personnel can attend electrical

installations and accessories.

• A responsible MRF Electrical engineer has to take responsibility for

electrical works.

• All those who are employed in Electrical works have to use relevant
Personal Protective Equipments like Shoes, Gloves etc.

• Excavation permit has to be obtained for digging works as per work

instruction safety

• Extra care has to be taken while working below high tension lines.

• Ear thing and earth continuity of all equipment have to be ensure

67
 • Only tested and certified equipment shall be used for work.

4. Working at Height

• Avail Safety Work Permit for working at Heights for all works above
02 meter height.

• Use Safety belt and other Personal Protective Equipments wherever

necessary as per the requirements of the Permit and Work
instruction-Safety.

• Use crawling Boards, Guy rope, Safety Net etc. while working over
Fragile Roofs.

• Do not throw objects from height.

• Use only good quality ladders while climbing up.

• Use Tower Ladders or scaffolding when ordinary ladders are not

sufficient.

• Always entrust another man to hold a ladder from the bottom.

5. Major Works

• Use barricades and Cautionary Boards while carry out major

maintenance works.

• Do not go below a lifted or hanging object.

• Do not take your body parts close to any unguarded moving

machine.

• Before using any machine or equipment, please ensure that it is

operable and free from maintenances.

• Use only tested and certified lifts, hoists, lifting tackles and
pressure vessels.

• Workmen should bring all unsafe condition and Acts immediately to

the notice of the supervisors.

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6. Transport Safety

• Do not sleep below a stopped vehicle.

• Follow the speed limit within the compound.

• Use only well maintained vehicle inside the Factory.

• Only licensed drivers shall be permitted to drive a vehicle.

• Projected material from trucks should be given identification with

red flags/lights.

7. Work Permits

• Safety Work Permit System has to be strictly followed wherever

applicable as per Work Instruction-Safety. The following works are
graded as permitted jobs.

o Welding, Gas Cutting, Grinding and any other activity which

can create spark or fire.

o All works above 02 meters from floor level.

o Digging/Trench cutting works.

8. Accident Reporting and First Aid

• All accidents have to be reported to the immediate superior of the

victim, who in turn will report it to all others including Unit chief,
Department Head, Safety Officer and Welfare Officer (as per the
procedure published in this regard).

• The immediate superior of the victim will arrange for an

Ambulance, First Aid and further treatment of the victim.

• The follow up of the corrective action are discussed in Safety

Committee Meeting and Monthly Quality Meeting.

9. Machines

• The Standard/Safe Operating Procedures published for each job has

to be followed strictly.

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 • The Emergency stop device of each equipment has to be kept
tested all the time.

• The Guards of machines have to be in place all the time.

• Only trained personnel shall be put on the operation of machines.

10. Contractors

• All contractors and their workmen have to follow the points

stipulated as per Contractors Safety Manual.

• Concerned MRF Management staff should issue this manual to the

contractor or his Supervisor under acknowledgement and should
ensure the contractor and his workmen follow them.

12. SECURITY DEPARTMENT

Industrial security in the public and private sector can be defined as protection
of men, materials, machines, buildings, classified information, and company
operation and to provide protective service against fire, theft, damage to the
company assets and the installation. Protect the valuables of the company as
well of the employees.

The main functions of security department are

1. Control of access.

2. Check thefts/pilferages.

3. Checking In/Out of raw materials, empty vehicles, vehicles carrying

finished goods, vehicles carrying scrap items etc.

4. Maintenance and upkeep of fire fighting equipment, fire hydrant system,

wet drill practice and fire fighting training.

5. Control of movement of personnel and material at the gate.

6. Maintenance, upkeep and documentation of weigh bridge at main gate

and at mixing plant.

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 7. Control and check of entry of contract workers.

In case of an accident in the factory, it is the responsibility of the Security

Department to provide the victim with first aid. The security department should
also take them to the appropriate place by using the ambulance if necessary.
The inflow and out flow of inventory, personnel are regulated and monitored by
the Security Department.

Action on outbreak of fire-Types of fire/classification

 Class A fire: - Fire in which a combustible material is burnt –EG wood

,Paper ,Textile etc

 Extinguishing medium: - Water, Soda acid, water, carbon dioxide.

 Class B fire: - Fire on oil, petrol, solvent, spirit etc.

 Extinguishing Medium: - Sand, Foam, Carbon dioxide, DCP EXT.

 Class C fire: - Fire in gases under pressure.

 Extinguishing medium: - carbon dioxide, DCP water flooding.

 Class D fire: - Fire on metals.

All workmen shall be liable on leaving, entering or while remaining inside the
factory premises to be searched by the security personnel. The search clause is
made applicable to the workmen only. The following are subjected to search at
the exit gate.

 Workmen

 Contract Casual Labour

 Suppliers

 Drivers, Cleaners, and Private Vehicles

 Commercial Vehicles

 Company Vehicles

The important documents to be maintained are;

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• Standing orders/Security Manual

• Duty Rosters (Staff and Watchmen)

• General Diary

• Visitors Register

• Material Movement Register

• Vehicle Register

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13. SHIPPING (DESPATCH) DEPARTMENT

• Finished goods will be received from Inspection/Packing area size wise,

batch wise or lot wise on the basis of Production Transfer Note. Physical
verifications of goods are done at the time of receipt and Receipt Tags are
put. Proper storage and identification of finished goods is the
responsibility of shipping department.

• Finished goods will be stored side wise on pallets with transfer slips
showing the size, quantity, date of receipt etc. Tractor rear tyres, Truck
tyres and such others will be stacked on floor. Stacking norms for finished
goods, wherever specified will be followed.

• Shipping will publish Daily Shipping Report wherein finished goods

inventory as on date, daily cumulative receipts and despatches are
shown. Copy is sent to Plant Planning.

• Daily Production Receipts and Transfer are fed into computer and Reports
are generated. Daily details are transmitted to Central
Planning/EDP/Marketing and data are consolidated for Report generation
and monitoring. Allocation verses Despatch Report is published for every
10 days period or otherwise as required and sent to Central Planning,
Plant Planning, and Plant Head etc.

• Non-moving/Slow moving items report is published monthly and

distributed to Central Planning, Plant Planning, Quality Assurance, Plant
Head, and Marketing etc. Shipping co-ordinates with central planning to
get allocation for non-moving and slow moving items. Tread
rubber/Cushion which exceeds the shelf life of 3 months and damaged
products/tyres packed with wrong tubes will be given to production.

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 • Statutory Registers and returns as required are properly maintained and
submitted. New Defective Tyres are brought for repairs from outside
godowns and inspections by Central Excise Authorities are arranged. They
are re-despatched after necessary repairs. Arranging Sales Tax Permits
from HO is a shipping department function. Preparation of Sales Tax
declaration and Road permits are also done.

• Central Excise/Sales Tax Rules and regulations are observed and prompt
payment of duty is ensured. Any materials returned for re-work are
brought to the factory after informing the Central Excise Authorities.

14. PLANT PURCHASE DEPARTMENT

The items purchased by the plant can be categorised as follows;

• Items which come under the head capital expenditure

• Items which come under engineering spares (non-capital expenditure)

• Stationary and miscellaneous items(items which don’t come under the

preview of raw materials)

• Services (repairing of machinery)

Procedure followed for purchase

Any person who needs a material can make a purchase requesting but it has to
be authorised by the department head. This has to be routed through
engineering store.

In case of items involving capital expenditure, it should be capital authorisation

number. In case of engineering spares of non capital nature, this is not required.

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Based on the indent, necessary quotations are invited and Purchase Order is
released. The copy of purchased order is sent to the supplier, intender,
accounts, stores, corporate office PEM and a file copy for plant purchase.

Procedure followed for repairing

For Repair of equipment or machinery, indent is raised and it is authorised by

PEM, and item is sent to the party from Engineering Stores vide Gate pass. The
item is dismantled and the exact nature of work to be done is finalised and
quotation is raised by the outside party. This is communicated to the indenter.
Further clarifications and follow up is done by the indenter. After getting the
approved repair quotation from the indent/department, necessary Work Order is
released by purchased department. Copies are distributed as in the case of
spares.

SWOT analysis of tyre industry

Strength

• Established brand names.

• Extensive distribution network.

• Good R&D initiatives by top players.

• Product image, Product quality is good and the equipments have its own
unique brand name.

• MRF is the Market in almost every segment of the Tyre Industry.

• Locally available raw material.

Weaknesses

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 • Cost pressures

• Pricing pressures

• Marketing Department is only at Corporate Office.

• Labour Unrest.

• Union Problem.

Opportunities

• Growing economy especially automobile industry

• Transportation development particularly changing road transportation

dynamics

• Access to global source for raw material at competitive price.

• Global Standards and Global Competition.

• As there is an increase in customers to Buy Vehicle.

• Making tie up with new Auto Mobile companies coming to India.

Threats

• Continuous increase in price of natural rubber

• Cheaper import of tyres especially from China

• Cyclic nature of automobile industry.

• Competition.

• Cost of Raw Materials.

CONCLUSION

In spite of cut throat competition in the tyre market segment, MRF has mobilised
itself as the market leader. The company has a considerable lead over its revels
in the tyre market but having a stiff competition from other global players. The

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company’s thrust increasing exports to countries in Latin America, Middle East
and Africa will also boost top line growth. The strong performance of MRF is a
combination of high growth in sales along with enhanced operations
management and significant cost saving. MRF tries to provide high quality and
technology superior products to its customers.

The study was conducted only at the Kottayam unit, which is one of the six units
of MRF Ltd. a general study about functioning and performance of the MRF Ltd
Kottayam was done. All departments of this organization work together for the
achievement of a common goal, that is to maintain the market leadership and
MRF have achieved this in all respect and MRF places No.1 tyre manufactures in
India.

This study has improved my practical knowledge in spite of theoretical

Knowledge. Being a student in the firm has been benefited me with so much
confidence and awareness so as to capable of orienting me to work in the firm
has been turning point in my academic curriculum.

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