CHAPTER-1 INDUSTRY PROFILE

INDUSTRY BACKGROUND The tyre industry has evolved from the basic cross ply to the more sophisticated radical tyres. Nylon cords that impart low weight and additional strength to the tyres have also replaced cotton ply. This industry is also driven by agricultural and infrastructural activity that take place in the region, as these two have an impact on the transport sector. The advent of globalisation and liberalisation in India urged the companies both large scale and small scale to build, in capabilities, in order to compete effectively on a global platform. The tyre industry in India has been striving hard to establish itself in global market in its infant stage. There were threats from the global players who enjoyed substantial economies of scale. As a result, the Indian tyre companies were in a constant pursuit of adhering global standards of quality and state of the art technology in production. The fortune of the industry depends on the agricultural and industrial performance of the economy, the transportation needs and production of vehicles. Hence this is a sensitive industry which has to adapt itself to a high volatile environment. ORIGIN OF INDUSTRY The tyre industry began to develop in India in 1920s. The growth of tyre industry in India may be divided into three phases. In the first phase, multinational companies like FIRESTONE (1920), GOODYEAR (1922), and DUNLOP (1926) come to Indian tyre industry for selling their products. They were considered as the fore runners of the commercialization of tyre in India. During the early twenties and in the mid thirties, these companies become very famous and get established themselves in the industry. In the second phase, these multinational companies stated their production in India. They become the first generation tyres of the Indian tyre Industry. DUNLOP and FIRESTONE had put up their plans to manufacture tyres in Kolkata and Mumbai in 1936 and 1942 respectively. The third phase of Indian tyre industry began when the companies in India started manufacturing tyres that are turned out to be known as the second generation tyres. MRF, PREMIER and COOT etc were the important companies among them. They started manufacturing their products in sixties and later on the third generation of the tyre industry started by 1970. APPOLO and JK TYRES were the most important companies among them.

Having started the manufacturing of tyres by various companies after 1970 became the fourth generation tyre companies. The most leading tyre manufacturing companies in India are:

MRF JK TYRES CEAT GOODYEAR APPOLO MODI BIRLA BRIDGESTONE MICHELIN

After the initialization process started in 1922 the Indian economy was stepping the ladder much higher. Earlier, automobiles were mainly used for necessity. But now-a-days, the whole trend has been changed in livelihood. Even the middle class people cant think about their life without having vehicles. This could be one of the main reasons that the Indian tyre industry growing up tremendously day by day, even the world is facing the major crisis of global recession. To an extent the Indian tyre industry has faced bit of problems, but its not affecting the whole trend much seriously as far as the tyre industry of India is concerned about.

THE INDIAN TYRE INDUSTRY

The foreign companies dominated the Indian tyre industry till 1960. However in the later part of the 60s and early 70s the Indian Industrial Entrepreneurs made a stylish entry in to the market alongiside foreign collaborations with the automobile sector foundation within the country. The tyre industry saw the entry of many players and with the winds of liberalisation blowing a midst the hue and cry, swept the entire land in 1992 and brought about the ride of joint ventures within the industry. The Rs.9000 crores worth industries was dependent up on the agricultural and industrial performance of the economy, the transportation needs and the production of vehicles. The 3

Indian tyre industry is one of the largest in the world with more than 100 millions motor vehicles on the Indian roads.

The Indian tyre industry evolves itself around some salient features like:

Adaptability Innovativeness Exports Technology progression Wide Product Range for Diverse Usage The Indian tyre market can be categorised into three. They are:

Original Equipment market Replacement Market Export market The replacement market generates demand to greater extend as business volume tends to be high(85%), while the original Equipment Market Demand in just a linear function of automobile production whose growth is in turn determined by the overall economic situation and the government policy. Globally the Equipment market segment constitutes only 30% of the tyre market and 10% contribution come from the Replacement market. This normally has placed the retreads in a better position than the tyre industry as a major colossal threat. The Coimbatore based Elgi Tyres and Tread Limited, the largest retread in India is giving the tyre barons sleepless nights. The tyres basically produced in India are: CROSSPLY RADIAL TYRE The cross play tyres have been used in India for several years. In this the polycords run across with each other or diagonally to the outer surface of the tyre. Rayon and Nylon cords are used as the reinforcing medium. These tyres can retread twice during their

life and hence preferred by Indian transporters who normally overload their trucks. In India, 90 95 percentage of tyres are sold of this type. The Radial tyres have their codes running radically from bead at 90 degree angle to the rim or long the outer surface of the tyre. The reinforcing mediums used in these tyres are Polyester, Nylon, Fiber Glass, and Steel. Thus guaranteeing a longer life time and provide lower fuel consumption, with better control over the vehicle and road holding. The unhealthy condition of Indian roads has resulted in radial tyres accounting only five percentage of tyre industry as against a global trend of 60 percentages. The tyre industry is a major consumer of the domestic rubber production. The degree of contribution towards the material content in the Indian tyre industry by the Natural Rubber Constitutes about 80% were as the remaining 20% contribution is made by the Synthetic Rubber(worldwide, this ratio of Natural Rubber to Synthetic Rubber is 30:70) tyres are subject to the use of different chemicals. The available local Natural Rubber is added an advantage for the industry, since it amounts to round 255 of the total raw material cost of tyres. On the contrary, Synthetic Rubber accounts to just 40% of the total raw material cost (India imports 60% of its Synthetic Rubber requirements). Apart from rubber, the major raw materials are Nylon Tyre, code and carbon black. These raw materials are used to make the tyre strong and impart tenacity to it, while the holds responsibility for the colour of the tyre and also enhance the life span of the tyre. Nylon codes comprise 345 of the total raw material cost, while carbon black accounts about 13 percentages.

To be concise, the tyre industry in Indian is highly raw material intensive, its cost directly affects the profitability of tyres. That is about 60 70% of the cost of production is from the cost of raw materials itself? Most of the raw materials are petroleum based. So the price of the international crude oil affects the tyre industry at large. Fortunately for the industry, the rubber and carbon black prices have declined considerably.

CHAPTER-2 COMPANY PROFILE

MRF LIMITED MRF KOTTAYAM UNIT ORGANIZATIONAL CHART (TOP LEVEL)

General ManagerKottayam Plant Production manager

Plant engineering manager

Plant Technical manager

Plant Quality Assurance manager

Plant Industrial Engineering manager Plant Accounts manager

Plant HR manager

Plant Security Officer

Safety Officer

MRF LIMITED MRF was established in 1946. MRF is the Indias large tyres manufacture and its markets leader. It is the 12th largest rubber companies in the world. It has a golden history of 61 years. Mr.Mammem Mappillai who started this company. It is only tyre company to straddle the sub continent within giant manufacturing facilities at Chennai, Arkonam, Kottayam,Goa,Medak & Pondicherry. MRF brands are the markets leaders in almost every segment.MRF brands Super lug(truck tyre) Shakthi(tractor tyre) Sigma(radial tyre) Nylogrip (two wheeler tyre) Legend (conventional car tyre) MRF is the largest producers of pre-cured retread. It is an active to as many as 65 countries. Within India MRF straddles the sub continent with a distribution network of over 2500 outlets. VISION MRF will be significant global player delighting customers world - wide through Leadership in technology World class systems Excellence in manufacturing Driven by a team of motivated high performers, to achieve profitable growth. MISSION The mission of MRF to realize of the zero defect zero brake downs zero accidents zero pollution and there by to have zero losses. In these emerging times when the performance standards are becoming more stringent the MRF tyres are to be tested on the most torturous train for this purpose MRF is setting up trite of its own.

Organizational Goal To maintain global standards thought continuous improvement in the quality of product and services in order to maintain market leadership

Coporate Governance MRFs philosophy on corporate governance envisages the attainment of the highest levels of transparency, accountinability and equity in all fact of its operations and all its interactions with its stakeholders. In furtherance to the above the company has compiled with the corporate. Corporate and plant functions The corporate office is situated at Chennai where Marketing, Expots, Central planning, Engineering, Quality assurance, Materials, Human Resource and Industrial Engineering, Environmental Engineering, Safety functions are carried out. Technical Research and Development functions are carried out from Rubber research centre, Thiruvottiyur and then design is transferred to plants. Each plant has its own manufacturing facilities and plant Research and development functions to cater to specific products. The muscleman The mere mention of the word MRF is bound to bring The Muscleman in the mind of Indians. The muscleman evolved in 1964, soon after MRF began manufacturing tyres. During the last 35 years, the Muscleman has evolved from a mere corporate mascot to a symbol of strength, reliability and durability; embedding the qualities of tyre that the muscleman represents. The Muscleman evolved into hi-tech symbol in the mid 80s, a sign of changing times. Its mew appearance was silent testimony to the indomitable spirit that carried MRF across the INR 20 billion mark. The musclemans appearance changed once again in 1996, MRFs golden jubilee year. He started appearing in full form and is now also known affectionately as the MRF tyre man by motorists across India and 65 countries worldwide, which have come to rely on him for sale and comfortable ride.

MRF PRODUCTION UNITS Tiruvottiyur Arakonam Kottayam Ponda Medak Puducherry : : : : : : Tamil Nadu Tamil Nadu Kerala Goa Andra Pradesh Tami Nadu

MILESTONES IN THE MRF HISTORY

A Race from the Birth to Success 1946..a star is born A young entrepreneur, K.M. Mammen Mappilai, opened a small toy balloon manufacturing unit in a shed at Thiruvottiyur, Chennai. 1956..Market leader MRF had become the market leader with a 5% share of the tread-rubber market in India. 1961..Collaboration With the success achieved in tread rubber, MRF entered into the manufacture of tyres. MRF established a technical collaboration with the Mansfield Tyre and Rubber Company of USA. A round the same time; it also become a public company. 1964..Tyre Exports With the commissioning of the main plant in 1964, MRF also made progress in export of tyres. An overseas office at Beirut (Lebanon) was established to develop the export market, and it was amongst Indias very first efforts on tyre exports. 1973..MRF launched Indias first NYLON car tyre 1980..Achieving excellence 10

MRF entered into a technical collaboration with B F Goodrich Tyre Company of USA, which was involved with the development of tyres for the NASA space shuttle. With this began a significant exercise in quality improvement and new product development. 1986..Quality speaks MRF was selected by the National Institution of Quality Assurance for their most prestigious award. Pitted against 20 tyre companies worldwide, MRF also won six award for quality improvement from B.F. Goodrich, Type Company from U.S.A. 1987..The No.1 tyre company in India MRF become the No.1 tyre company in India. MRF Legend; the premium nylon car tyre was introduced. 1993..Ten billion cum National Honour MRF become the first Indian tyre company to cross a turnover of Rs.1000 crores. With this the company found a place among the ten most respected corporate groups in India K.M. Mammen Mappillai was honoured with the Padmashri Award for his contribution to industry, the only industrialist from south India to be accorded this honour. 1999..Ethically No.1 MRF was declared the most ethical company by the Business world in its survey. 2000..Again MRF launched the Smile campaign on Indian roads. For the second year in succession MRF is awarded No.1 award for customer satisfaction by J.D.Power Asia Pacific. The company crossed a turnover of Rs.3000 crores. MRF-KOTTAYAM UNIT MRF tyres, Kottayam are one of the most modern plants that were set up in 1969 at Vadavathoor about 7 kilo meters from Kottayam town in the State of Kerala. About 10 corers of land were purchased in Vadavathoor village during 1968 and foundation stone for the factory building was laid by late Sri.K.M.Cherian. A factory building with in the area of 34200sq.ft flat was constructed during the period of 1968-69 and Ban-bury of 3A size with a 11

capacity of to mix 10 meter per day was erected and commissioned on 21st July 1963,with the strength of 7 workmen, but presently it is most advanced technology-mixing 10 meter and a full fledged manufacturing unit providing work and technologies. In the view of high productivity and very good performance in general, the mixing capacity was enhanced by installing a second ban bury of 11 A size with a capacity to mix 48 tons per day during March 1970, with the permission of Goa govt. a license to manufacture four lakhs of automotive tubes per annual was transferred and started production of tubes with 7 quarrying presses. To enhance the mixing capacity ban-bury of 11 d size with a capacity of 54mt per day was installed 1972. The no of tube presses was increased to 45 presses. A fourth ban bury of 11 d size was installed in 1978 to meet the increasing demand for mixing. At present 6000 tones of various compounds are dispatched to different units. The level of the tube production has been increased technology and now it was touched a level of 3 lakhs numbers per month. Another new product introduced in MRF Kottayam unit during 1993 was flap production. The management also decided to stailt tyre production in Kottayam unit taking amount of the various incentives on tax and power announced though a new industrial policy by the Kerala Govt. The present turnover of finished goods of Kottayam unit is Rs. 370 crores per annum. Kottayam unit also started procured tread rubber (PCTR) production in August 1993 their 4th plant started in 1998. Regarding repair materials accrued 70 million tons of PCTR cushions ZEG cushions are manufactured and sent all over India. The working capital required per month by the Kottayam unit constitutes more than Rs.20 crores. The company mainly goes for credit transaction and the payment is made within one month time duration.

KOTTAYAM PLANT FACTS & FIGURES

Built up area Management Staff Regular workmen 12

- 6 Lakh sq.ft - 252 staffs - 1115 workmens

Casual workmen Total finished goods production Total turnover of finished goods Mixed stock sent to other units Tyre production Tubes, envelope and curing bags total production Flap production Tread rubber production (Conventional) PCTR production Vulcanising solution

- 399 casual workmens -3400 Million tons per month - Rs.37 corers per month - 7000 Million tons per month - 52,000 tyres per month - 2, 63,000 per month - 82,000 per month - 160 Million tons month - 330 tons per month - 32,500 liters per month

INTERNATIONAL CERTIFICATIONS FOR KTM PLANT

ISO 9001:2000 ISO 14001:1996 ISO TS:16949

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TYPES OF PRODUCTS

Main product-Automotive tyre

Non-Tyre products

Light truck tyres Automotive tubes

Special tyres for defence Flaps

Truck tyres tube type and tubeless type conventional tread rubber Tyres for industrial applications Agricultural tractor and tiller tyres Specialised tyres for motor rallies Passenger tyres Bias ply and radial earth mover tyres Two/three wheeler tyres Off the road tyres solid tyres and MRF auto coat MRF metal coat Toys Conveyor belts Tyre repair materials Vulcanizing solution Pre-cured tread rubber

MRF glass coat

MRF wood coat

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CHAPTER -3 DEPARTMENTAL PROFILE

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ACCOUNTS DEPARTMENT
Plants Accounts Manager

Mgr. Raw Material Stores

Asst.Mgr Plant a/cs

Asst.Mgr Engg Stores

Officer shipping

Officer Engg Purchase

Wages Officer

Costing Officer

Cashier

Supervisor

Supervisor

Supervisor

Supervisor

Supervisor

Supervisor

ACCOUNTS DEPARTMENT

This department keeps account of all the financial transactions of the company. The accounting period of MRF is from October 1st of one year to September 31st of the next year. MRF has a fully computerized accounting system that facilities fast operation of its various functions. All the transactions of production unit starting from the issue of goods received to the final documentation is computerized. Funds are obtained for capital structuring from both internal and external sources. The internal sources include capital reserve, debentures; shareholders etc.and the external source include banks such as SBI, Canara Bank etc. The

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strategy that the company has adopted is to go for credit transactions and payment will be made within one month time. Plant account manager is in full charge of various activities done in accounts departments. He verifies the various functions done in each section. He takes decision for maximizing the profit and minimizing the expenses. Manager takes an important decision. All the costing taxation, salaries and wages, fringe benefits turnover details etc are computed and posted by the raw material stores, engineering stores, shipping departments and engineering departments. Raw Material Stores Manager Raw material stores manager is related with the buying and issue of raw material that for using raw material. Manager evaluates and takes decision about raw material that is transferred to production and mixing unit. Manager has the main duty of testing and Okaying of raw materials. The procurement of raw material 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 units. Manager makes decision about plant layout designing,modification and flowchart etc. Office shipping The storage dispatch of the finished goods is carried out by the shipping department. Finished goods are sent to the depots and from there to the nation wide declares networks.For the overseas marketing the finished products are sent to exports go down and from there to various destinations all over the world. Shipping officer Shipping officer has the duty to transferring of finished goods and raw materials to the distant office and to another plant. Shipping officer engages Lorries for transportation of 17

goods as per the agreement financial budget. Officer takes the about the sales tax and other relevant information to the production department. Officer checks various allowances and bonus paid to the employees. Engineering purchases department 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 un its. Source of finance Share holders fund Share Capital Reserves and surplus Loan fund 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 outstandings, payment in lieu of travel bills of employees, canteen expenses, payment to contractors, payment of leave travel allowance, medical reimbursement etc. Cash receipts in the case of scrap sales and any other cash receipt will also come under this branch of accounts. Assistant manager in accounts Assistant manager deals with all the activities related to payment of bills, wages and salary, sales tax, exercises duty etc. In MRF all type of payment will be paid as per the agreement or within one month. Wages and salaries are paid direct to the employee bank account which is convenient to them. Wages of temporary workers are paid directly to them. Accountings are done periodically in the head office.

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Cost accounts This branch deals with forecasting, budgeting, analysing and reporting the income and expenditure of the company. The budget for expenditure is prepared using standard costing principles and it is compared with the actual expenditure. Any variation from the budget (whether positive or negative) is analyzed to find the exact reason and it is reported to the top management. Assistant manager costing The main work done by assistant manager in costing is making cost sheet related to the expenses. He checks the whole expenses done in the company. He makes plans for reducing the expenses by the effective utilization of the resources. Valuation of inventory is also done by him. He is in charge of preparing the budget for the unit. Wages and salary Computation of wages and salaries is 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. Sale 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 30th 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, total dividend for the entire year works out to 200%. The directors recommended that after making provision for taxation and proposed Dividend, the amount of Rs.30.64 crore be transferred to General Reserve.With this, the companys Reserves and Surplus stand at Rs.749.81 crore. 19

PRODUCTION DEPARTMENT
STRUCTURE OF PRODUCTION DEPARTMENT

Production Manager

Assit Mangr Production Plant-1

Assit Mangr Production Plant-2

Assit Mangr Production Plant-3

Assit Mangr Production Plant-4

Supervisor Plant-1

Supervisor Plant-2

Supervisor Plant-3

Supervisor Plant-4

Workers Plant-1

Workers Plant-2

Workers Plant-3

Workers Plant-4

PRODUCTION DEPARTMENT FUNCTIONS:Planning for production process Every month,a monthly plan to the by center planning.Based on this monthly plan,plantplanning department will prepare a simulation plan by dividing the month into 3 segments of 10 days each. 20

The simulation plan for the month is taken as a guideline and each plant plans the production for each process. The available inventory and the priority of dispatch are taken in to consideration while daily schedule is given.Slight 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 changeovers with the objective of improving production efficiency. Material indent and receipt The daily requirement of raw materials is calculated at each plant after considering the available inventory and the scheduled production for the next day.Raw material indent is made to raw material store. A raw material store makes arrangements to deliver the indented materials at the plant. The receipt of materials is acknowledged to the RM stores by production by signing on 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. Processing Processing is carried out as per the technical specification, BSP (Basic Standard Practice), and the work instruction of the respective department. Set up verification is done for each product and each run. Once the process is stabilized, the process parameters are checked and recorded. If the parameters are as per specification, production is continued. If any parameter is not confirming to the specified limits, then necessary correction is made and then production process is resumed. Production department ensures that all the necessary instruments and equipments are calibrated by checking the calibration sticker on the instrument. Cases in which the instruments are overdue for calibration are informed to instrumentation department through AVO (Avoid Verbal Order). The supervisor stops the usage of such equipments depending on criticality of the system violation. Whenever a machine/equipment is behaving abnormally, it is informed to the engineering department. If the process variation is abnormal, production supervisor/quality supervisor/technical supervisor stops production. Engineering department rectifies the anomaly and the machine is handed over to production. If any non-conformance is noticed in 21

the product, it is held using NCM (Non Conforming Material) tag. whenever engineering department notices behaving abnormally, they request production stoppage through a maintenance request. Product identification and trace ability The objective of product identification and trace ability is to prevent mix up of products and to ensure trace ability of products at various stages. The primary responsibility to ensure this lies with production. The applies to raw materials, in-process materials and finished goods. 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 visual checking is done on in-process materials for defects like 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. Control of non-confirming products During processing, if any non-conformance is noticed in the product, it is held with a NCM tag, which is filled up in duplicates with details like material that has been held, size/code, defect, quantity held, and location where the material is kept. It has separate space for writing down the disposal and also the disposal follow up. PRODUCTION PROCESS Production is the primary function of the company and hence all other functions are support functions. Production is carried out in four plants at kottayam unit. They are Plant 1: Tube plant Assistant manager of production is Plant 1 is in charge of the whole tube plant. He is entrusted with the responsibility of formulation plans for manufacturing tubes, coordinating the manufacturing activities in the plant and facilitating smooth manufacturing of the product.

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Production Process in Tube plant Artificial rubber called buty1 rubber is used for manufacturing of tubes. It is mixed with carbon black and chemicals, then extruded in various sizes. After sufficient cooling it is sent for pre-cutting to the required length, value fixing and splicing. Then it moved to freezing table for cooling the splice joined and is shaped on forming ring to the required size. Then it 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 size are segregated and packed as per standards. The red copy is tied to the non-conforming material and the white copy is given to production supervisor who in-turn gives it to technical department for disposal. The disposal for the non-conforming product is given by technical department and this is written on the red copy, which is attached to the material. The disposal is effected by production and it is written in the disposal follow up column. After this is done, the red copy of the NCM tag is returned to plant quality assurance office. The details of the held material, including the disposal and the disposal follow up as inferred from the red copy of the NCM tag is recording in the Non conforming material register by QA supervisor. Corrective and Preventive action Corrective action- When 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 further. Preventive action- Recurring non-conformities, which are noticed in process by production, quality, technical or engineering, are taken up for discussion in the weekly QA(Quality assurance) meeting to initiate preventive action in consultation with the consented 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 conserned departmental person as decided in the meeting. This is followed up in the subsequent meetings and reviewed for its effectiveness. If the preventive action calls for a change in procedure / work instructions, this is discussed in the weekly QA meeting and a joint decision is taken by the department heads.

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Butyl Mixing

Tube Extension

Cooling

Pre Cutting

Valve Fixing

Vulcanization Curing

Forming ring

Freezing

Splicing

Inspection

Deflation

Tube core

Packaging

Despatch

Plant 2: Tyre Plant Assistant manager of production in plant 2 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 Gray 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 calendered 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 Plant 3:Mixing Plant The Assistant Manager of production in plant 3 is in charge of the mixing plant.

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Production Process in Mixing Plant

Rubber Mixing

Dump mill

Cooling

Metal 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 in to the dump mill and passed through batch of tanks in sheet form for cooling and stored on metal skids. Sample 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 ans facilitates the smooth manufacturing of its profits. Production Process in PCTR Plant
Compound rubber Extruder Cooling Leaf trucks

Packaging

Inspection

Trimming

Vulcanization

Pre-cured tread rubber is used for treading 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 vulcanization in curing presses. After curing exces flash materials are trimmed off and go for inspection. Then it is sent to the stretch-wrapping machine for packing.

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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. 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 and equipments are manufactured. 3. Re treading Materials Both conventional and pre-cured Tread Rubber (PCTR) are manufactured here. While the conventional tyre requirements a longer curing time in the case of PCTR the already moulded bried 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 protect 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.. 5. Envelopes There are made of chorobutyl and are also used at the time of a re treading of tyres. This acts as an envelope and retains the thermal input supplied to the tyre during retreading 6. Vulcanizing solution This is an aid for vulcanization and is used for re treading of tyres. 7. Mastication Mastication is one of the principle activities of Kottayam unit. Kottayam plant caters to the mixed rubber of all other MRF units. s

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TECHNICAL DEPARTMENT

Manager plant technical

Technician In-charge

Technician In-charge

Technician In-charge

Technician In-charge

Plant I

Plant II

Pant III

Plant IV

Supervisor Plant I

Supervisor Plant II

Supervisor Pant III

Supervisor Plant IV

Operators Plant I

Operators Plant II

Operators Pant III

Operators Plant IV

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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 material are tested and released if they confirm to the specifications. When the material is received, raw material stores personal arrange for collection of samples from the received material as per sampling plan. The sample is given to raw material testing lab along with sample transfer note/visual inspection report. Raw material are tested as per BSP (Basic Standard Practice) standard test procedure and is compared with the specification issued by corporate technical. If the material confirm 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 raw material stores return the material to the supplier. Positive recall This is 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 assurance with all relevant details. The work-in-process materials and finished goods produced using that material will be kept properly identified at all stages till the material is tested and disposal is given. Compounds mixed for other units can be dispatched even before testing is done provided the testing can be completed and result communicated to the receiving plant before the material is unloaded.

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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. NEW PRODUCT INSTRUCTION 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 the originator of TPOR, will approve it. 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. Analysis of the finished product is done and necessary corrections if any are incorporated into the specification. The product is released for re-evaluation or for completion of the project schedule. The product is sent for in-plant testing/corporate testing and performance report is published. Based on design review by the concerned product group, bulk evaluation is done with or without change in specification. The performance during bulk evaluation is published. Then if it is satisfactory, the product is released for regular production in consultation with corporate technical, and is documented through a TA (Technical Authorization) or PCL (Plant Change Letter) FINISHED PRODUCT RE-CLASSIFICATION Finished products, which do not confirm to first quality norms are kept separately and are jointly inspected by production, technical and quality assurance. Based on joint decision, the material is sent as seconds, repaired or scrapped.

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TOOLS INSPECTION Tool inspection means inspection of any mould (tyre, tube, Pre-Cured Tread Rubber, 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 nonconformities, plant technical is authorized 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 moulds, / drums / bead rings / Plant rims, plant technical dose 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 okeyed by technical before being put in production. CONTROL OF NON-CONFORMING PRODUCT It is the responsibility of technical department to dispose off 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, quality, reason for holding, 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 non-conforming material tag. The disposal is then followed up by production.

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QUALITY ASSURANCE DEPARTMENT

Manager Quality Assurance

Quality Assurance In charge Plant I

Quality Assurance In charge Plant II

Quality Assurance In charge Pant III

Quality Assurance In charge Plant IV

Supervisor Plant I

Supervisor Plant II

Supervisor Plant III

Supervisor Plant IV

Operators Plant I

Operators Plant II

Operators Plant III

Operators Plant IV

QUALITY ASSURANCE DEPARTMENT The quality assurance department is a service department. It was established after the collaboration of MRF with Mansfield Tyres, U.S.A. This department assures quality by undertaking four activities namely

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 Auditing Reporting Corrective action Process Stabilization Besides quality, quantity is also to be ensured. Department carries out inspection to check whether the production process are following the set specifications. For this purpose, checklists are maintained. QAD does the following product inspections: Visual inspections Defective analysis for damaged products if any Godown inspection where non-moving goods are inspected Final inspection of finished goods

Statistical measure are widely used in this department to ensure quality and for checking the reliability of the measuring system. After all the inspections are completed, a report will be prepared and sent to the concerned department or person and corrective actions will be taken by the concerned area to stabilize the process. Quality Assurance is the new concept where the quality of the product is ensured at each stage right form design and development of the product, design and development of the process, procurement of raw materials, the actual process and final inspection and dispatch. Any deviations from the quality norms are detected and corrective actions are taken. FUNCTIONS Quality assurance department has the primary aim of customer satisfaction . Problem solving tools are employed to ensure that the problem is solved and error-proofing methods are adopted to ensure that such problems dont occur again. The quality system requirements of the customers. This is done by employing statistical process control techniques and by training the opetators. 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 of waste reduction and quality improvement and it is done in co-odination with all other connected departments. 32

The main function of quality assurance department is process audit and final product inspection. This will include monitoring the inspection status of incoming materials, inprocess materials, process parameters and finished product inspection. Ensuring identification and traceability of all materials is also the function of QA. Each process and product has specification 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 dos and donts of each process etc. work instructions are made available which gives the specific activities to be performed while carrying out the process. Quality assurance departments checks whether the process is carried out in concurrence with the laid down specification and the basic standard practice. The inference are recorded and follow up action is initiated whether any abnormality is found. Special attention is paid to critical areas and problematic areas. Trails are followed up and the relevant process and product parameters are recorded and reports are published. Whenever a process or product does not meet the specifications, the process is stopped and the defective products are kept held using a tag called the NCM(Non conforming materials) tag. This will be later disposed in an appropriate manner by the technical department. Analysis of defects and failures are done and corrective and preventive actions are initiated so that such non-conformances dont repeat. All major highlights of quality assurance reports are discussed in weekly and monthly quality meeting so as to make every one aware of the situation and to initiate permanent corrective actions. 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. QA co-ordinates the removal of scrapped items so that exact data can be obtained on the reasons for scrap and the exact quality 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. Audits on suppliers and outside godowns are conducted periodically to ensure that the materials that we procure are of the required quality and also to ensure that they are stored in the manner that does not give room not give room for any deterioration. 33

Whenever a finished product is returned to the factory due to any defect (called new defectives), those product are inspected, and the reasons found out and communicated to every body concerned. It is then disposed in a suitable manner and recorded. Slow moving and non-moving items are tracked at regular intervals to avoid material getting deteriorated due to prolonged storage and to avoid producing material which is not needed by the market. The above-mentioned functions are common for all the plants of kottayam unit (tube, tyre, mixing and PCTR plants.)There are some other functions, which are unique to each plant, which is described as follows: 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 used for Off the Road tyres, radial, defense, 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 into the product and if the weight operates at a lower level, it can affect the quality of the product. Whenever there is a change over from Natural Rubber mixing to Butyl rubber mixing and vice versa in banbury, QA ensures that the change over procedure is properly followed. If it is not followed properly, it may lead to mix up of natural rubber and buty1 rubber, which can cause serious quality problems in the product. Audit is also done on the splicer (a machine which joins the edges of the tubes) so that the splicer settings are as per specification. Random checking of packed tube bundles is done to check whether any mistake has happened at packing. Tyre plant & PCTR plant Market leader product follows up and performance monitoring is done to closely follow its improvement. 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. 34

ENGINEERING DEPARTMENT
STRUCTURE OF ENGINEERING DEPARTMENT

Plant Engineering Manager

Manager, Electrical Civil Engineer Maintenance plant I, II, III, IV Manager, Mechanical Maintenance plant I, II, III, IV

Instrumentation Engineer Supervisors Supervisors

Electricians

Mechanics

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The department comprises of engineers, mechanics, electricians and technicians. The mechanical, electrical instrumentations, civil and environmental engineering wings come under this department. FUNCTIONS 1. Mechanical maintenance:

Preventive maintenance All equipment 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 breakdowns in the machine and based on the personal experience of the maintenance personnel. The annual maintenance 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 detected the flaw, production raises the maintenance request and in the case of engineering detecting the flaw, engineering rises 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 done.

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Other jobs (Mechanical) Apart from preventive and break down maintenance the following jobs are done by mechanical engineering. Generating purchase requisition of engineering materials, inviting quotation, approval of quotation, Making drawings of spare parts and finalizing specifications whenever required.. Job allotment and bill settlement of contract workmen engaged in engineering jobs. Maintenance of facilities for filtering, purification and storage of drinking water. Preparation of the following reports Monthly consumption details for water, furnace oil, etc., monthly delay analysis and action plans to prevent repeated break downs so as to achieve zero break down, machine utilization repot, analysis of physical phenomenon (occurrence and delay time on a daily and monthly basis). Tools inspection (Mechanical): Whenever moulds, 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 brandings are checked based on the drawings. In case of regular sizes, inspection is done based on inspection certificate or test repot and is okeyed or rejected as the case may be. Tool (Mould) change Whenever a mould change is required, planning gives a request to production and inturn production gives the request to engineering. Engineering carries out the mould change operation. The first product inspection is done and the mould change is certificated 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. When ever 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 into 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 into production line. Any repair carried

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out on the mould is recorded in the mould history card. Change of tyre building drum also follows a similar procedure. 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 boilers Inspetorate. The water that is sent into the boiler has to be purified to avoid corrosion, pitting and scale formation inside the boiler. The water is first sent into a clarifier to remove colloidal impurity. Then it is passed through a pressure filter for filtering any solid matter. It is then sent into a softener plant to remove the hardness of water. Water is then sent to a deareator to remove nascent oxygen. The treated water sent into the boiler is converted into steam, which is to be sent for heating purposes. The steam produced is measured in Tonnes per Hour. 2. Electrical Maintenance: MRF Kottyam unit under the EHT (Extra high tension) consumer category. All consumers who use 66 KV and above are included in this category. The incoming supply for our unit is 110 KV. Normally we get poer from pallom sub station also in case of emergency. The total connected load of our units is roughly 30,000HP. The maximum demand is 10,000 KVA. For back up power supply,we have 3 generators of 1,000 KVA each and one generator of 5,000KVA capacity. Erection and commissioning of new machinery (Electric) In case of erection of new machinery, the following procedure are followed 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 qualified 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. This is forwarded to electrical inspectorate and they in-turn scrntinise the proposal and initimate any 38

changes to be incorporated. When this is done, initial approval is obtained from electrical inspectorate and work commences.After the erection is over, electrical inspectorate is informed and an inspection is done by them. If the condiyions are satisfactory then a safety certificate is issued which states that the system is safe for eneggisation. 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. Periodic caliberation of energy meters, and yearly electrical inspection by Electricity Board will be co-ordinated by electrical engineering. Preventive maintenance(Electricla) & Breakdown maintainces-(Electrical) Instrumentation A master list of all the instruments that have to be caliberated is prepared by instrumentation engineering. All the instruments are given unique numbers so that it is easy to be trace and track the instruments for caliberation. A software program is prepared in which the equipment number, description, last caliberated date, frequency of caliberation etc are fed. From this software,monthly list of equipments to be calibarated is generated and the

instruments are caliberated as per work instrunctions and standarded caliberation procedures.Most of the instruments are caliberated in house while some of the instruments are caliberated by external agencies Caliberation sticker is passed on the instrument showing the date of caliberation and the due date for caliberation .caliberation certificate is obtained for instruments that are caliberated by outdide agencies. If any instruments shows an error or deviation beyond acceptance level then the user is informed about it. The correction factor to be applied is recorded and initiated. All the balances and weighbridges are to be certified by government agencies before commissioning(Original Verification) and re-varification is done every year. This ensured by instrumentation. When a new instrument is purchased, it comes to the engineering stores and they initiate instrumentation department about the receipt of the instrument. The material is received and commissioned as per the instructions in the instruction manual. The necessary caliberation is done be instrumentation is handed over to production or testing . In case of any problem with the running machinery , in the area of instrumentation, it is communicated to instrumentation department and it is corrected

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3.Civil Engineering Civil Engineering does the work of preparation of projects drawing and estimates as per requirements for construction and extension of new factory buildings, equipment foundation ,plant offices(aluminium pattitions and false ceiling) construction of cable and pipeline lrenches, construction of roads, storn water drains and site development work(using mechanical means) Maintainance of all civil structures is the function of civil engineering. Periodic repair of concrete floor,A/C sheet roofings and valley gutters,maintances of

plumbing and sanitary fittings such as toilets etc.,de-silting of storm water drains, and annual re-paintaining of buildings(white washing and colour washing) are the maintenance activities . 4.Enviornmental 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 minimized or climinated. Water pollution, air pollution and sound pollution are the main factors that come under the preview of environment al engineering in the present context. 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 solids are removed is 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. A wetland is also created on a trial basis where the efficient water is aerated by the roots of a special type of reed(plant),which degrades the organic matter and thus purifies water .The capacity is 20 to 25 kilolitres of water per day. Air pollution control Measures To control air pollution they have provided their ban buries used for missing rubbers and chemicals, with bag filters (pulse jet & shaker type) the dust-laden air is passed through 40

shaker type filters. The

dust

is trapped on the bags and the clean air is gone out. These

bags are straken with a leave r at periodic intervals is dislodged the dust from the bags, the dust is collected in a hopper and discharged . In public jet system, the bags are cleaned by a brief burst of compressed air at programmed intervals of time.

HUMAN RESOURCE DEPARTMENT

ORGANISATION STRUCTURE OF THE HR DEPARTMENT

Plant Human Resource Manager

Deputy Manager Human Resources

Human Resource Officer

Canteen

Welfare Officer & Family Welfare Coordinator

Time Office

Officer Training

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HUMAN RESOURCE DEPARTMENT FUNCTIONS Any employees newly recruited will be exposed to the following areas: Introduction about the company Safety measurs External competitive environment and organizational culture Factory discipline Basic process flow in the plant in which they are placed

VARIOUS ACTIVITES UNDERTAKEN IN HR DEPARTMENT Recrutment,selection ,placement,induction and orientation. Vacancies are notified as and when they occure in the Leading newspapers. 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 In the case of workmen, selection is done by plant HR department through a written test followe 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 basic. Experience is considered as an conditional qualification. MRF provides the tradition of selecting the relatives of the selecting employees whenever a vacancy arises provided the relative is fit and suitable for the job. The selected candidates will undergo trining for a period of six months. After this Period they will be appointed as apprenticcs for atime period of half years.then they Will be put on probation for six months. After this they will be confirmed and made permenent .

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Qualification Management staff:Above graduate Workers :SSLC Wages & Salary Administration Wages of workman is 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 accounts section where wages to be paid are calculated and paid .wages to be paid for the casual workmen is fixed and revised from time to time. In case of management staff, corporate HR fixes the salary. Plant HR co-ordinates the periodic appraisal of performance which is the basis for salary revision. Salaries for the staff is paid on the basis of attendence and this is monitored by time office which is a function of HR. The recruitment process includes the following. ALLOWANCE The workmen are provided Dearness allowances, fringe benifits, Bonuses and other payments According to the rules and regulations of the company. Overtime bonuses are given to people a person who normally works beyond time;such as Lunchtime, Night shift, etc. PROMOTION Promotion depends upon the parameters duch as seniority, merit and suitability of the job etc. For an employee for transfer from the organisation he paid his gratuity benifit as required by statutory standared. DISCIPLINARY ACTION People who are absent regularly are given a show cause notice. A charge sheet is issued upon the receipt of unsatisfactory reply to the show cause notice. And a domestc enquirer is also issued. By this procedure the absentees and the peoplee who violate the rules and regulations are made understand the situation that led them to this misconduct

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The presnt show cause notice is issued for the employee to the present reasons. If he fails to provide a convincing reason, then he will be suspended or even dismisssed from the company. This principle is applicable to all company. COUNSELING CELL MRF has a counselling cell comprising of nine trained counsellors. Employees with various problems are dealt with heart and compassion. If an employee is found with an addiction or mental problem they are sent for De- adddiction and psychiatric counselling to outside agencies at the cost of MRF. FAMILY WELFARE SCHEMES MRF runs family welfare center, a charitable society, for mental and physical, spiritual and intellectual well being of the employees wives and children. There is an executive committee consisiting of a chairman, the wives of three managment staff, and wives of three worker staff, the family welfare coordinator and the office HR. They execute programs and activities known as LADIES FORUM. The ladies forum conducts monthly training program to the family of the employees. This include Saftey savings, Cooking, General health, Conseling etc. They are also conducted free of cost. BALAVEDHI (A FORUM FOR EMPLOYEES CHILDREN) It is a small committe of the employees children. It conducts monthly training programs for children on various subjects such as General health, Education, Saftey etc. MRF encourages the employees children to actively participate and compete in sports and education through scholarships instituted in the name of Mr. Ravi Mammen and Mr. Mammen Mappilai AWARDS are been granted to the SSLC top scorers. TRAINING The Trainig progrm is aimed at improving the performance of a particular job. Training is an on going and continous activity of MRF. They give continous training to all the newly appointed staff and workers. people who violate the rules and regulations of the

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MODES OF TRAINING Training is given to improve the facts of human personality namely Knowledge, Skill, Behaviour. Knowledge Based Training This training comprises of a trining process known as conceptual trining. In this method, the empoyees 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 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. This consists of: Classroom classes: This method is used to impart information Regarding the technical aspect of each processl Quality training : This is based on improning the quality. This includes Brain stonning sessions. Meeting : This includes Quality management review to high light targets etc. Behavior based training. This is mainly used to improve the personally development of the employees. This topics covered are Leadership,team Biuilding,Inter Personal Skill, Self Development , Ethicss, Assertiveness, Motivation &Communication.

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External Training In this type of trainig, outsiders are brought to give training to the employees of the company. The outsiders trainers include people from the confideration of Indian Industry, national saftey council, and National productivity council etc.

Intra Department Training This type of trining is emphasized at the importance of knowledge of topics of mutual concern among the various departments of the organisations. This training normally involves inside the organisation.

INDUSTRIAL RELATIONS AND LABOUR MANAGEMENT The company has very good cordial industrial relations. The two trade unions of the company are RF Employees union(INTUC) MRF Employees union(CITU) The trade union had a level of hierarchy. The local leaders of the trade unions are the secretary, treasurer, and a convener. The external leader comprises of president, vice president and Gen. Secretary The workman category of MRF is controlled by a long Term Agreement every three years Negotiations and conciliation between management and workmen are made over the tabl through continued discussion This is mainly organized by HR with the help if industrial engineers and other departments involved.

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INDUSTRIAL ENGINEERING DEPARTMENT

INDUSTRIAL ENGINEERING DEPARTMENT STRUCTURE

Plant Industrial Engineering Manager

Industrial Engineer

Assistant Manager Planning

ERP Implimentation

Supervisors

Workmen

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INDUSTRIAL TRAINING DEPARTMENT

The man power requirement,man power allocation, evaluation of work, factory and office layout,computation of management information system comes under this department. MAJOR ACTIVITES Conducting studies for mixing Crew Strength in all areas. Negotiating with Unions. Participating in discussion for setting labour disputes. Manpower requirement assessment. Factory Layout planning Resource Planning-Manpower, Machinery and Equipments. Design of Wages system and incentive monitoring. Special studies like relative merits and demerits of different methods of manufacture etc. Computation of utilization

SAFETY DEPARTMENT
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 emloyees shall He our FIRST proirity.It is the responsibility of every one in this organisation , regadless of the possion he occupies, to ensure that every one in the factory returns home to his beloved ones without any every day. We shall obsrve this policy not only in letter but also in spirit ond offer ACCIDENT FREE SAFE PRODUCTION for the benefit of one and all.

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IMPLEMENTATION OF THIS POLICY AT Kottayam plant, General Manegar is responsible to implement this policy an unit level. This responsibility has been further re delegated to Department in-charges Plant in Charges and stop floor officers, Supervisors or Assistants. PROCEDURES AND GUIDE LINES Necessary Procedures, Rules and Guides lines for the effectives implementation of this policy, without prejudice to the statutory requirements, is formulated by Cheif 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, Department and the Units as a whole. PREVENTION METHODOLOGY 1. Training Training will alleviate ignorance on safe/Standard work practices and will enhance safety. Training will include a) Induction Training on Basic Safety aspects Induction training will cover general safety procedures,safety rules and other guidelines. This will also cover the pronceness 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 om machines and personal protective equipment. Safety officer will be faculty for safety) b) On the Job Training Along with the points on specific activities related to the nature of work of the new Employees,this training should cover aspects on applied safety related to the specific section. Shop Floor Officer/ supervisor will be the faculty training. Induction Training(on

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c) Periodic/Refreshment training Given to the experienced employees. This training will cover practical aspects for specialized subjects of safety. External faculty, Chief safety Officer or Safety Officer will be the faculty for this. Training programs are organized Record to this effect are maintained by training Section. 2. 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 level of enforcement of Safely 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. 3. 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 Safety Officer makes a detailed presentation on the analysis of accidents in this Meeting. A total analysis of accidents of the previous month is carried out in Monthly Quality Meeting also. 4.Safety Awareness Promotional Activities Boards have been displayed at all conspicuous points. Safety promotional literatures are being released to increase awareness among employees. Safety competitions are conducted during Safety Week Celebrations.

SECURITY DEPARTMENT
Industrial security in the public and private sector can be defined as protection of men, materials, machines ,building, classified information, and company operations and to

provide protective service against fire, theft, damage to the company assets and the installation.

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The main functions of security department are 1. Check thefts

2. Checking In/Out of raw materials, empty vehicles carrying finished goods, vehicles carrying scrap items etc. 3. Maintenance and upkeep of fire fighting training. 4. Control of movement of personnel and material at the gate. 5. Maintenance, upkeep and documentation of weigh bridge at main gate and at mixing plant. 6. Control and checks on the company hired taxis and security of bills. 7. Liaison with police dept & fire dept and help the Company in obtaining permits and sanctions in time. 8. control and check of entry of contract workers

Search Operation All workmen shall be liable on leaving, entering or while remaining inside the factory premises to the searched by the security personnel, the search clause is made applicable to the workmen only. Workmen, Contract, Casual labour, Suppliers, Drivers,cleaners, private vehicles, Commercial vehicles, company vehicles are subjected to search at the exit gate.

The Important Documents To Be Maintained are Security Manual Duty Rosters Visitors register Material Movement Register Vehicle Register Telephone message book etc.

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MARKETING DEPARTMENT
STRUCTURE OF MARKETING DEPARTMENT

Corporate Executive Director of Marketing Marketing

Regional Sales Manager

Distribution Officer

Dealers & Agents

MARKETING DEPARTMENT Objectives Creating demand Customer satisfaction Increasing goodwill of the company Increasing market share Rasing the standard of the consumer community

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Marketing Strategy MRF has emerged as one of the marketing leaders in the tyre manufacturing sector in the world by means of its marketing strategy. The core of marketing network is a chain of exclusive franchise shops spread over each and every corners of the world The marketing program includes the promotion of its products which is facilitated through advertisements, sales promotion programs , awareness campaigns. Services offered to society etc. such programmes are often organized in and around are found to be successful for the uplit of their brand name. Marketing Network MRF has a wide marketing network, which hosts 68 sales centres, 2500 distributers and exports to over 75 countries. The coporate director based at MRF head office Chennai guides the entire marketing activity. In Kerala Ernakulam is the location of the District office. MRF-An Insight MRF-was the brand name that rocked the domestic markets throught sales offices,dealers and franchises which helped trigger the sales of tyres and other tyre related products MRF MUSCLEFLEX was the brand name used ,by which the conveyes belts and sold to its customers directly from Conveyer Belting plant at Arakonam. Advertisement For the promotion of the products MRF concentrates their products through TV,newspaper , magazines etc. The company also uses posters and board for making awareness of their products at selected locations. Sales Promotion MRF undertakes several sales promotion activites viz organizing the 6th world Boxing Championship to Mumbai, the list of its kind with the participation of over 39 countries. Smile campaign on Indian Roads , pace foundations,Racing and Rellying and many more just signifies the strenuous efforts on the part of the organization to keep MRF colors fly high. 53

MRF brand ambassadors are worlds number one cricket players like Sachin Tendulkar, Sceve Waugh and Brain Lara. They have the MRF logo with their bat.Sachin has also done promotional shows for MRF at various automobiles shows around the country. MRF is having around 62 district offices where the products are for sales. MRFs main competions are: CEAT Limited Apollo Tyers Limited Good Year India Limited Dunlop Tyers Limited JK Industries

The major OEM (Orginal equipment manufactures) customers of MRF tyers and tubes are Frord India Ltd., General Motors India Ltd.,Maruti, Hindustan Motors, Hundai, TATA Motors , Ashok Leyand, Honda Siel, Hero Honda, Bajaj, IMI. Ltd. Honda Motors & Scooters India Ltd.,Mhindra & Mahindra, Eicher Motors New Holland, Volvo,etc. The major

Conveyor Belting customers are Cement / Steel / Fertiliser / Thermal Power plants, mines and ports. MRF exports tyers and tubes through authorised agents representing countries such as USA, Canada, Mexico, Brazil, Chile, Australia, Philippines, Bengladesh, Sri Lanka, Korea,Egypt, Nigeria, South Africa, Ghana, Keniya, Mauritius, UAE, Afganistan, Pakistan, Iran, Iraq, Syria, Bahrain, Qatar, Oman, Lebanon, Grecce, Turkey, Malta, UK, Uzberkistan etc. MRF conveyor belts are exponed to Australia, South Africa, Europe, Canada, Middle East, etc.

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CHAPTER-4 SWOT ANALYSIS

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SWOT ANALYSIS Identification of the opportunities in the environment and strength and weakness of the firm is the SWOT ANALYSIS. it is these factors which determine the course of action to ensure the survival or the growth of the firm. The environment might have present opportunities but a company might not have the strength to exploit all those opportunities. Similarly sometimes the firm will not have the strength to meet those environmental threats. STRENGTHS High Quality products (ISO 9000 certificate) Environment certification(ISO 14001 certification) Raw material are locally available Advanced technology Use of advanced technologies Good and efficient distribution channel The company has the Goodwill in the market

WEAKNESS

Pricing pressure- Due to huge raw material cost company have been vouching to increase the prices. But due to competitive pressures they have not been able to pass on the entire increase to the customers

Lack of transportation for employees Improper investment in raw materials High rate of absentecism Union problems like strike and turnover of employees Less interaction between marketing and manufacturing departments.

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OPPORTUNITIES All over the world the Automobile Sector is fast growing and such instances provide good opportunities for MRF Limited, as it is the leading tyre manufacturer in the sub continent. Subsequent increase in the replace market Usage of upgraded machineries and technologies available in the market to produce better quality product. A major support from the media segment would help the company to grow and reach new hights. Modernization of tubless tyres would give better opportunities for the development of the company THREATS Growing competition Continuous fluctuation in the prices of natural rubbers, which accounts for nearly one third of the material costs Change in the Government Regulations will affect the smooth functioning of the organisation. Cheaper imports of tyres, especially from China.selling at very low prices have been posting challenges. With crude oil sealing upwards, added pressure on raw materials (petroleum byproducts)is expected. Entrance of new players from abroad create a huge threat to the organisaton. Cost pressures- The profitability of the company has high correlation with the prices of key raw materials such as rubber and crude oils, as they account for more than 70% of the total cost

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CHAPTER-5 OBSERVATIONS, RECOMMENDATIONS &CONCLUSION

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OBSERVATIONS Good co-ordination among the different departments MRF Limited is the leading tyre manufacturing company in India which has exports over 75 countries across the world Good working environment Policies, strategies and redressal procedures are satisfactory and transparent Improved quality standards their products All departments are well structured Training programmes and meetings are held subsequently Trade unions have their own influence on employees Team effort and honesty in their strength Systematic work schedules Health and safety of employees are given importance Systematic performance appraisal system

RECOMMENDATIONS The present strategies of the company in various segments should be improvised especially in the case of setting up a marketing developed in the unit. Control measures and close scrutiny on the part of the management would resrtict inter-union rivalries More attractive advertisements in media Arrange transportation facilities for the employees It is better to diversify MRF products to avoid the limitations of current exports Ensure more co ordination and interaction between the marketing and manufacturing departments suggestion boxes should be provided so that employees cam give suggestions. Website should be updated regularly Control the absenteeism There should be proper flow of communication.

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CONCLUSION MRF has been the potential market leader and the trend setter in the tyre industry for the last 21 years in spite of the emergence of competitors and their competition. The organizational study conducted at MRF, helped to throw knowledge and insight in to the workings of the organization. This study helped me to understand the relationship between management principles and practical applications. It also helped me to know the threats and opportunities faced by the company and the Industry.I was also able to maintain an amiable relationship with the employees as well as with the managers. It has been found that MRF Kottayam provides good working condition with improved quality standards and goog co- ordination between the workers. The company is very keen in conducting systemic training programmes, meetings,performance appraisals and strict disciplinary actions. The technologies and concepts are updated regularly. The company has a systemic work shedule and an appreciable saftey policy. The trade unions have got goods influence among the workers. The company tries to maintain a harmony between the management and workers and is a success in that. The needs of the employees and customers are satisfied. This study was great experience for me and I am proud that I was able to do my organizational study at Indias no.1 tyre manufacturer.

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BIBILOGRAPHY

1. Kothari C.R,Reserch Methodology.New Delhi,New Age International(P) Limited Publishers, 2004, 2nd Edition 2. Kotler Philip,Marketing Management, New Delhi. Prentice Hall of India Private Limited, 2004, 11th Edition 3. Annual report of the company 4. www. mrftyres.com

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