SUMMER TRAINING REPORT

MAJESTIC AUTOS LIMITED

LUDHIANA

PROJECT:
WHAT IS THE QUALITY PROCESS AND HOW
MAKE CUSTOMER SATISIFIED
WHAT IS THE PROCESS OF DELIVERY

SUBMITTED TO DEPARTMENT DEGREE OF

PGDM

SUBMITTED TO:

SUBMITTED BY:

MAJESTIC AUTO LIMITED

AJAY KUMAR

LUDHIANA

PGDM

TABLE OF CONTENTS
SR.NO

PAGE NO.

PREFACE
3
ACKNOWLDGEMENT
4
PROFILE
5
NAME LOCATION AND PRODUCT
6
INTRODUCTION
7
QUALITY POLICY
9
BRIEF DESCRIPITION PRODUCT OF MAL
10
DESCRIPITION OF MOTOR
11
5 WHY PROBLEM
12
PROCESS CHART AND MOTOR LOT REJECTION
13
MAIN DEFECT OF MOTOR WENDING AT LG
14
SOME DEFECT RISEING IN MAJESTIC OF MOTOR 15
ACTION TAKEN AND RESULTS
16
PARAMETER, METHOD AND SPECIFACTION
17
OBSERVATION,JUDGEMENT AND INSPECTION
20
ROTOR AND ROTOR LOT REJECTION
21
STATOR AND PROBLEM OF STATOR
23
ACTION TAKEN STATOR PROBLEM
24
DEPARTMENT WISE OBSERVATION
25
SWOT ANALYIS AND COMPANY POLICY
28
FINANCIAL ANALYSIS OF COMPANY
30
PROJECT REPORT & CUSTOMER SATICFACTION
38
QUALITY DEFFINATION AND CONTARST(MAL)
42
BANCHMARKING PROCESS OF MAL
49
DELIVERY AND DESPATCH SCHDULE OF MAL
52
TRANSPORT OF LG MOTOR
55
REASON FOR FAILURE OF DELIVERY
57
IN HOUSE DELIVERY PROCESS IMPROVEMENT
58

PREFACE
The Summer Training is an integral part of the PGDM programme and aims at
achieving the following objectives:
Application of knowledge and techniques learnt in the first year to real
business problems and to test out and enrich ones understanding,
knowledge and skills.
Gives an insight into the working of the real organizations.
Gaining deeper understanding in specific functional areas.
Appreciating the linkages among different functions and developing a
realistic managerial perspective about organizations in their totality.
Helps in exploring career opportunities in their areas of interest.
2

I had my summer training in Majestic Auto Limited, Ludhiana. During

my training I learnt a practical marketing management and regarding physical
distribution of manufactured goods, recruitment of sales force and their enumeration,
fixing up targets and ways of achieving them.
During my training I was given projects TO UNDERSTAND THE PROCESS
OF QUALITY AND DELIVERY. Learning is a continuous process; it cannot be
completed in Six to eight weeks. I tried my level best in this duration to learn as much
as I can and improve myself as a person. I accept all the mistakes made by me as mine
and all the credit for good things go to my seniors and teachers for their good
guidance and care.

Date: 09-06-2009

AJAY KUMAR
PGDM

ACKNOWLEDGEMENT
The state or quality of being recognized or acknowledged; "the partners
were delighted with the recognition of their work"; "she seems to avoid
much in
the way of recognition or acknowledgement of feminist work prior to her own"

I would like to thank Sh. M.C. Munjal, M.D. Majestic Auto Ltd. for giving me
an opportunity to pursue my summer training in his esteemed organisation. I
also pay my sincere thanks to him for providing me an opportunity to learn
3

and giving timely guidance and motivation at various stages of the project in
spite of his busy schedules.
I would also like to thank Mr. Raj Bassi, V.P. Monitoring for providing me
guidance I required to understand various aspects of modern marketing.
I would also like to thank Sh. Madan Lal Sharma for his invaluable guidance
at all stages and answering all my queries with no annoyance despite of my
constant interventions in his busy hours.
I would also like to thank Mr.Sunil Wasel, Mr.Jatender Kumar Pathak and
Ajay Kumar those who have help me every moment

and share their

experience and knowledge with me.

Last but not the least, I heart fully acknowledge and thank all the members of
Majestic Team for their efforts and help give me a better opportunity to
develop myself.

AJAY KUMAR

MAJESTIC AUTO LTD.-PROFILE

Majestic Auto Ltd., was formed in 1978 to cater to the growing market for mopeds.
The company also manufactured fitness equipment and is a market leader in its
segment. The products in its portfolio include Hero Panther, Hero Student & Hero
Effy mopeds and fitness equipment like Allegro, Stepper, Jogger and Twistepro. Since
then company has diversified into Fine Blanked Components, Silencers, Spokes &
Rotors.

Names, Locations and Products manufactured by the group companies of Hero

Business
Bicycles

Companies
Hero cycles Ltd, Unit-II
Established in 1988
Sahibabad
Products: Bicycles

Hero Cycles Ltd

Established in 1956
Ludhiana
Products: Bicycles

Auto
Two
Wheelers

Hero Honda Motors Ltd.

Established in 1983
New Delhi
Products: M/cycle
Collaboration: Honda Motor
Co. Ltd, Japan

Majestic Auto Ltd.

Established in 1978
Ludhiana
Products: Mopeds & Fitness
Equipments, Fine Blanked
Component, Silencer, rotor &
spoke
Rockman Cycles Industries Ltd. Highway Cycle Industries Ltd.
Established in 1960
Established in 1971
Ludhiana
Ludhiana
Products: Automotive and
Products: Free Wheels, special
Bicycle Chains, Steel,
machine tools & Auto parts
Aluminium hubs & Auto parts

Munjal Showa Ltd.

Established in 1985
Gurgaon
Products: Shock
absorbers
Collaboration: Show
Manufacturing Co. J
Munjal Castings
Sunbeam Auto Ltd
Hero Cycle-CR divis
Established in 1981
Established in 1987
Established in 1990
Ludhiana
Gurgaon
Ludhiana
Bicycles
Product: Non-ferrous casting
Products: Non-ferrous castings Products: Cold Rolle
and Auto parts
Steel Sheets & Coils
Munjal Auto Ind. Ltd
Hero Motors Ltd.
Shivam Autotech Ltd
Established in 1981
Established in 1988
Established in
Vadodara
Ghaziabad
Gurgaon
Product: Auto parts
Product: Auto parts
Product: Auto parts
Hero Exports
Hero Corp. Services
Munjal Sales
Established in 1993
Established in 1995
Corporation
Ludhiana
New Delhi
Established in 1975
Products: International trading Products: Corporate Services in Ludhiana
Services
company dealing in
finance, H.R.D., IT and
Products: Sole sellin
commodities and Engg. Items
Strategic Planning
agents for bicycles an
bicycle parts for Ind

Introduction to Majestic Auto Limited (MAL):

Historical Background of MAL: The Company was originally incorporated as a
Private Limited Company on 23.4.1973 under the name Majestic Gears (P)
Limited. It was manufacturing various bicycle components for M/S Hero Cycles Pvt.
Ltd. It was promoted by Sh.Brijmohan Lal Munjal, Sh. Om Parkash Munjal and Sh.
6

Satyanand Munjal of Hero Cycles Private Limited. The Company, having understood
the requirement of Indian markets of two wheeler Industry, decided to go in for
producing a suitable moped in the year 1974-75. This company was converted to a
Public Limited company on 2.4.1977. The name of the company had been changed to
M/s Majestic Auto limited and a fresh certificate of incorporation was obtained on
August 9, 1977. In 1978, the company diversified into the manufacture of Mopeds 49
cc under the brand name of HERO MAJESTIC. The Company since then has
recorded a phenomenal growth, every year, in its production capacity. The Company
became full-fledged Public limited Company on 29th October 1985.

Majestic Auto Ltd. (MAL) at a Glance:

Majestic Auto Ltd. is one of the leading firms of Ludhiana city as well as the Hero
Group. MAL appeared in the galaxy way back in 1978 as a successful venture
promoted by Munjal brothers; for manufacturing mopeds. MAL, the Ludhiana based
auto company specializing in two wheeler manufacturing under the chairmanship of
Shri O.P. Munjal is setting a new trend in the moped and mini motor cycle
manufacture. As a matter of fact, they are one of the pioneers in this field and are one
of the leading manufacturers of mopeds. Further MAL diversified in the field of Fine
Blanked Components in technical collaboration with Feintool of Switzerland;
Company has established a modern unit to manufacture various types of silencers for
Hero Honda Motorcycles, Stator & Rotor assembly for LG Electronics and Tecumesh.
The first moped was launched in 1978 named as standard model then the
development took place and new models were launched year after year. The mopeds
launched by the company up to date are Standard moped, VIP, Popular, VIP 240 dx
and Popular 240 dx, Hero Majestic, Pacer, Panther, Heavy duty Panther, Ankur,
Gizmo, Student Panther in Four Stroke & Effy.
The manufacturing plant in Ludhiana is an ultra modern saga equipped with
sophisticated

and

precision-engineered

instrumentation

that

assures

quality

production, thus meeting the ever changing specific requirements of customers. It is

the stamp of quality that makes the decade old pledge of Hero Group Made in Indiaa proud reality.
Numerous test rigs, interactive computer facility, technically and professionally sound
team work under an able and seasoned anchor, Managing Director; Mr. M.C. Munjal
has enabled the company to show credible achievements. The company is making
continuos progress towards development of Human Resource by holding various
Training Programs, workshop on productivity, quality improvement and personality
7

development. The managing director has recently introduced Six Sigma Quality
System in Production Shops to improve the quality of products. We are an ISO / TS16949 and ISO-14001 certified company.

Quality Policy
The aim of our Company is to make our products and
services to delight of all our customers.
We strive for excellence in all areas of operations through
our dedicated team work , Optimum control on inputs while
supporting the principles of continuous improvement,
8

honoring our social and Environmental obligations.

We remain committed to sustain consistent growth of our
Products in global market through continual technological
up gradation and quality improvement.

Brief Description of products manufactured by MAL

Spokes:
We are a leading manufacturer in the field of cycle spokes for more than 35 years. We
have the manufacturing and plating capacity to the tune of 2938 lacs per annum. We
are supplying the spokes from the size of 74 mm to 306 mm. We have recently
modernised our Zinc Plating plant by switching from potassium cyanide to alkaline
plating system.

MUFFLERS:
We are a leading manufacturer of sheet metal components mainly mufflers of various
models for Hero Honda Motors Limited. We are having an automatic cutting,
polishing, welding, plating plant and paint shop to meet the stringent quality
requirements of our customer. We have a well equipped tool room to provide all type
of tools, jigs, fixture and dies to have a smooth production and maintain consistency in
product quality.

FINE BLANKING COMPONENTS:

MAL is having Fine Blanking Presses from M/s Feintool, Switzerland. They are the
world leader in Fine Blanking Technology and they technically support us. It has 3
presses of 250 Ton, 400 Ton, 700 Ton. They produce various locking parts, parking
brake parts, sliding piece for fuel injection pump, gear shifter parts, shocker parts,
seat recliners, seating parts etc.

Stators and Rotors

MAL is industry leader in stator and rotors. It is having world class machinery and
has some of the esteemed customers in LG and Tecumseh. MAL has installed facilities
to manufacture Stampings and Die Cast Rotors by acquiring state-of-the-art world
class facilities. It includes two high speed press (with CNC control) Schuler MK-II.
We have also semi continuous and continuous high temp Decarb Annealing and
Bluing Line with a capacity of 5 Ton and 20 Ton per day respectively. For stator
winding we have commissioned Winding Shop for Compressor Motors with a capacity
6000 motors per day

Description of Motor :
The principle of operation for all AC motors relies on the interaction of a revolving
magnetic field created in the stator by AC current, with an opposing magnetic field
either induced on the rotor or provided by a separate DC current source. The
resulting interaction produces usable torque, which can be coupled to desired loads
throughout the facility in a convenient manner. Prior to the discussion of specific
types of AC motors, some common terms and principles must be introduced.

10

Rotating Field
Before discussing how a rotating magnetic field will cause a motor rotor to turn, we
must first find out how a rotating magnetic field is produced. Figure 1 illustrates a
three-phase stator to which a three-phase AC current is supplied. The windings are
connected in wye. The two windings in each phase are wound in the same direction.
At any instant in time, the magnetic field generated by one particular phase
will depend on the current through that phase. If the current through that phase is
zero, the resulting magnetic field is zero. If the current is at a maximum value, the
resulting field is at a maximum value.

Since the currents in the three windings

are 120 out of phase, the magnetic fields produced will also be 120 out of phase.
The three magnetic fields will combine to produce one field, which will act upon the
rotor. In an AC induction motor, a magnetic field is induced in the rotor opposite in
polarity of the magnetic field in the stator. Therefore, as the magnetic field rotates in
the stator, the rotor also rotates to maintain its alignment with the stators
magnetic field. The remainder of this chapters discussion deals with AC induction
motors

5 WHY PROBLEM

11

Define
Problem

Root Cause

Fool proof action

Use this Path for Investing why the

process failure happened
Why ?

Why ?

Use this Path for Investing why the

problem was not detected
Why ?

Why ?

Why ?

Why ?

Why ?
Why ?

Detection system
Strengthen

B
Why ?

B
Why ?

Process Change Break Point

Detection system Change break point

Prepared

PROCESS CHART OF MOTOR

12

Approved

Date

HEIGHT
GAUGE

MODEL
MARKING

MAIN SLOT

SUB SLOT

MANUAL
MARKING

MAIN
INSERTION

MAIN
WINDER

FRIST
FORMING

END COIL
INSULATER

SUB
WINDING

KNOT
CUTTIN
G

KNOT
MAKING

LACING

CONTINUTY

MANUAL
SETTING

3RD
FORMING

PRE
SETTING

BRAZING

CONNECTION

2ND
FORMING

SUB
INSERTION

4TH
FORMI
NG

1ST
VISUAL

HOT AIR
GAN

M-GAUGE

FINAL
INSPECTION

PACKING

DESPATCH

INPUT
STAR
GAUGE

This is the process chart of motor, that put every work in sequence and proper
managing the output of motor very effectively.

MOTOR LOT REJECTION AT LG

H.V FAIL

LOOSE WIRE

WEDGE SHIFT

WIRE OUT WEDGE

SUB OVER DUE TO BRAZING NOT OK.

MAIN DEFECT OF MOTOR WINDING

Type of defects: 13

CLUSTER DAMAGE
WIRE OUT OD WEDGE
WIRE SCRATCH
WIRE OUT OF LACING
WEDGE PAPER DAMAGE
SLOT PAPER DAMAGE
LAMINATION UP
STACK DAMAGE
OIL CONTAINMENT
WEDGE SHIFT
WIRE MIXING
STATOR RUST PROBLEM
ID DAMAGE
KNOT LOOSE
WIEE PUNCH
M-GAUGE NO OK

These are the defects those can be arise after dispatch the
motor Majestic to LG, if these are not pass proper
inspection.

SOME DEFECT ARISE IN MAJESTIC

M-GAUGE NOT OK
SUB RESISTENCE-HIGH
SUB RESISTENCE- LOW
MAIN RESISTENCE-HIGH
14

MAIN RESISTENCE LOW

L-SURGE FAIL MAIN
L-SURGE FAIL SUB
HV FAIL
ROTATION FAIL
L+Q MAIN FAIL
L+Q MAIN+SUB
SPARKING

These are the some defects that can be arising when producing the motor
in-hours

ACTION TAKEN FOR REDUSE THE

DEFACTS

MACHINE RACTIFY
OPPERATOR TRAINING

These are the main two action to reduce the defects and if some motor are
take in rejection then the rectify in rework.

15

RESULTS
Results fine very good from last 2 or 3 years i.e. is why Majestic stand first position in
3 vendor company. This is the vendor ranking report of every month.

PARAMETER

HEIGHT(NEAR 15 DIA)
STACK ID
RUST/ DENT
LAMINATION GAP
MAKING POSITION
MARKING POSITION
APPEARANCE
PAPER LENGTH
WIDTH
THICKNESS
CUFF LENGTH
WIDTH
THICKNESS
CUFF LENGTH
16

DIIFFERENT METHOD OF QC

Vernier calliper
Passed by M-gauge
Visually
Micrometer
Vernier
By hand appearance
Coil gauge
Resistance meter
Pin hole tester
Turn counter

These are the final method thats also improving the quality of mot

DIFFERENT SPECIFACTION OF QC

.mm+1.2mm
60.6+0.035/-0.015mm
Should be rust /Dent free
CMC..E
+_0.2mn
29.00 +_ 0.2mm
0,250mm
3.0+_0.2
Max for nos
No Scratches
No damaged to Harness
Passed the test
17

 Quality the gauge

These are the specification of quality control of motor
that is prepared by quality control inspector, checked
by shift incharge and approved by shop incharge for
the better quality of Majestic motor.

FREQUANCY BY LG TO MAJESTIC
OF QC

2 piece/4 hour
2 PCs starting of new role/Model/Setting Change
1 PCs/Model
2 PCs/ 4H/ Model
2 piece/ Shift/ Model
Piece/ Model
Piece starting of new Role/Model/Sati
2 pcs/4H

These are the frequency that is given by LG to Majestic

Auto Ltd. To improve the quality of motor.

18

OBSERVATION
This is the own observation of the Majestic that is one day 4 shift after 2
hours.

JUDGEMENT
Judgement is related to the good position of the motor. See in this area
motor is ok or not ok, if not ok than find the reason and take the specific
action to get the better result.

INSPECTION BY
1.This-audit sheet is prepared by:
Quality inspector

2.This-audit sheet is checked by:

Shift Incharge
3.This-audit sheet is approved by:
Shop Incharge

COMMENTS
OK
19

 NOT OK
These are the comment passed by QC Inspector.

AUDIT RESULT
When Quality department performs all this procedure then result is came
in Ok or not good.

ROTOR
The rotor is the non-stationary part of a rotary electric motor, electric
generator or alternator, which rotates because the wires and magnetic field
of the motor are arranged so that a torque is developed about the rotor's
axis. ...
1. the rotating armature of a motor or generator
2. the revolving bar of a distributor
3. rotating mechanism consisting of an assembly of rotating airfoils;
"there are horizontal rotors on a helicopter or compressor rotors in a
jet engine"

ROTOR LOT REJECTION AT LG

ID TIGHT
RUN OUT
BURR ON RIVET
ID SCRATCH
ROTOR MODEL MIXING

20

Problem Identified
Wrong sandwiching of small ID
and big ID laminations while
preparing stacks.
Aluminum filling in-between
laminations especially at the
junction of small ID and big ID
laminations
Rotor small ID and big ID
lamination Gauge not answering
from the beginning
Rotor runout more after OD
turning
I.D tight

OD oversize
Metallic chips in ID

I.D tight

Counter Actions taken

Finalized with M/s TPIL to keep the burr in the slots on
the opposite sides.
The OD size of the mandrels at big ID location was
found more by 25 microns leading to deformations. All
mandrels were rechecked and ground which were out of
specs .
Gauge sizes revised and gauges made as per new specs.
1.Operators trained for timely filing of Gelly in the
collet.
2. We were checking 100 % after OD turning. Now
runout is being inspected after ID burnishing.
Intentionally kept the size at lower limits for
precautionary measure. Understood M/s TPIL preferred
size.
Air Gauge procured to check the size.
Snap gauges size calibration frequency to be increased
and daily to be checked by Q.A person
1. After chamfering operation the chips were settled on
the surface of laminations and gets engraved in Pressing
operation. Now pressing operation is crried out after air
blowing for chips removal.
2. Cleaning in oil started before final inspection.
Air gauge to be replaced by Marposse gauge as being
used in M/s TPIL to take care of the instrument
variation to control ID dimensions

ROTOR PROBLEM ACTION TAKEN PLAN

21

STATOR
The fixed part of an AC motor, consisting of copper windings within steel
laminations
.
The part of a motor, generator or alternator that does not rotate. In
permanent magnet alternators it holds the coils and laminates.
Mechanical device consisting of the stationary part of a motor or generator
in or around which the rotor revolves.
Stator is the static or unmovable element of a generator.
Non-rotating part of a magnetic structure. In a motor, the stator usually
contains the mounting surface, bearings, and non-rotating windings.

PROBLEM OF STATOR

WELDING METERIAL AT FACE

ACCESS WELDING METARIAL AT OUT
WELDING BROKEN FROM MIDDLE
ID UNER SIZE
SLOT TIGHT
22

DUST IN ID

ACTION TAKEN STATOR PROBLEM

100% VISUAL INSPECTION AT FINAL

100% VISUAL INSPECTION AT FINAL
100% VISUAL INSPECTION AT FINAL
100% CHECK BY 60.94mm PLUG GAUGE AT FINAL
100% CHECK BY SLOT OPENING GAUGE
100% VISUAL INSPECTION AT FINAL

23

DEPARTMENT WISE OBSERVATION

Majestic Autos Limited is a moped production company with interests in
manufacturing of Hero Honda motorcycles Silencers and certain Fine Blanking
components. The company has distributed all the work into various departments,
which are discussed below.
a) Production:
1. Machine Shop: In machine shop assemblies and subassemblies are
manufactured top be used in mopeds and Health Equipments. Various
assemblies and subassemblies manufactured are clutch, connecting rod, crank
case, crank shaft, cylinder housing, cylinder head, pulley, sprocket etc.
Separate product lines are followed for the above products. For common
process like surface treatment (nitriding, copper coating, galvanizing) separate
facilities are maintained.
2. Spoke Plant: In this plant, spokes for hero Cycles are manufactured. The spoke
Plant has capacity of 7 ton Per Day and it operates in two shifts. Workers are
paid according to production in tones. Quality is checked by in-house quality
department. Separate packaging section is there for packaging of spokes.
3. Tool Room: Majestic Auto Limited has well established tool room. It meets all
the tool requirements of different production sections of M.A.L it also produces
Dies and other tools for Fine Blanking Machines.
4. Paint Shop: Majestic Auto Limited has a well equipped paint shop for silencers
to suit various customer needs and requirements.
24

b) Receipt and Quality Control:

The incoming material from various vendors is received at store after gate entry. It
is then unloaded, counted and counter checked with ordered quantity.If found ok
SRR is prepared and is send along the material to quality Control department.
Q.C department after receiving the material generates the parameters to be tested
through computer software. Sample is taken using random sampling and sample
size depends upon the size of lot. These samples are checked for requested quality
norms as laid by the department. If found not acceptable the material is sent back
to receipt section otherwise to assembly section or to production department
where it is required.

c) Stores:
There are two main stores.
1. Spare Part Store: This store maintains the inventory for meeting the demand
of spare from dealers and customers the intimation time for order is
maintained as 1 month for with in Punjab Vendors and 3 months for outside
Punjab Vendors. Whole of the inventory is divided on the basis of ABC method
and proper database is maintained. This store has in itself three sections. First
is excisable store in which the items manufactured in M.A.L are stored.
Second, are the non excisable items (procured from with in Punjab). Third are
also non-excisable items, procured from outside Punjab.
Inventory of spares is maintained according to average demand in
previous months. Section or compartment wise distribution is done for
different spares for storing them and each spare has a unique code by which it
is identified. The order for sale is received from Sales Department and then the
required spares are collected and suitably packed for transportation.
2. Original Equipment store:
It has two parts. First RG1, it has inventory produced with in Factory
premises and further is to be consumed with in factory for the production of
mopeds and health equipment. Second RG16 it has an inventory of material
which is procured from outside and is to be consumed with production of
mopeds and heath equipment.
.
25

d) Marketing Department:
The department plans, directs, controls all the activities
related to sales, product promotion and services for all the products of the
M.A.L. The division of the work i.e. sales of products, , spare parts, services,
advertisement and publicity has delegated to different persons with due
accountability and responsibility. A proper database is being maintained for all
the dealers, Sales department is responsible for setting up the targets for the
future sales and for meeting the same. According to the projection given by the
sales department all the other departments work in coordination for meeting
the required target with in time, quantity and cost constraints.
This department continuously monitors the status of dealers in relation
to their sales, requirements, outstanding payments and promotional activities
and takes the required steps to help them at each level.
h) Dispatch:
This section deals with dispatching of products after intimation from
sales department. The products received after final inspection are packed as
per the order requirements and dispatched through various transportation
agencies.

26

SWOT ANALYSIS OF
MAJESTIC AUTO LIMITED
Strengths:
1. Dedicated Employees
2. Good Brand Name
3. Dynamic Leaders at the helm of the affair
4. Good quality products
5. Excellent top management
6. Planning, Directing & Staffing is better.

Weaknesses:
1. Lack of automation.
2. There is lack of interaction between the various departments which creates
hindrances in communication and leaves the customers unsatisfied.
3. No proper delegation of responsibilities.
4. Lack of knowledge of Product for worker.
5. Lack of Skill

Opportunities:
1. Large growing market of fine blanking components.
2. Existing capacity can be expanded to meet increasing customer demands.
3. New customers can be added to their existing portal.
4. Motor demand more high in future
5. company grow in future

27

Threats:
1. Losing Market Share
2. Customer dissatisfaction
3. Employee dissatisfaction

COMPANY POLICY
Total customer satisfaction by continuous up gradation of
technology and product quality.
Reduction of wastages and rejection in all areas of operations,
Optimum utilization of men, material and machines.
Harmonious work environment based on mutual understanding,
co-operation and team spirit.
Increase in customer share by meeting customer expectations from
products.
Ensuring that products / processes meet environmental guidelines /
statutory requirements.

28

FINANCIAL ANALYSIS OF THE COMPANY

Financial Analysis is undertaken to know the past performance of company in
context of meeting its stated and desired objectives as well as knowing the
efficiency with which the companys operations are carried out. The most
powerful tool used for carrying out Financial Analysis is Ratio Analysis.
Ratio Analysis is the process of establishing and interpreting various
ratios, it is with ratios that the financial statements can be analysed more
clearly and decisions made from such analysis.
MEANING OF RATIO
Ratio is a simple arithmetical expression of the relationship of
one number to another. It may be defined as the indicated quotient of two
mathematical expressions. According to accountants hand book by Wixon, Kell
and Bedford a ratio is a number of the quantitative relationship between two
numbers.
Ratio analysis is a technique of analysis and interpretation of
financial statements. It is the process of establishing and interpreting various
ratios for helping in making certain decision. However, ratio analysis is not an
end in itself, as it is only means of understanding of financial strength and
weakness of a firm. Calculation of mere ratio does not serves any purpose, as
the aim is to interpret them and take decisions based on the information given
by ratio analysis.
LIQUIDITY RATIOS
The bankers, suppliers of goods and other short term creditors are
interested in the liquidity of the concern. Liquidity refers to the ability of a
concern to meet its current obligations for a short period usually one year.
Liquidity ratios are generally based on the relationship between current assets
29

and current liabilities. To measure the liquidity of a firm the following ratios
should be calculated:

Current Ratio

Quick or Acid Test or Liquid Ratio

Absolute Liquid ratio or Cash Position Ratio

1) CURRENT RATIO:
Current ratio may be defined as the relationship between current assets and
current liabilities. This ratio is also know as working capital ratio, is a measure
of general liquidity and is most widely used to make the analysis of short term
financial position or liquidity of a firm. It is calculated as follows:
Current ratio = Current Assets
Current liabilities

YEAR

CURRENT ASSETS

CURRENT

RATIO

2004

70,48,25,699

LIABILITIES
81,00,65,086

2005

27,69,32683

2805,80,225

0.987

2006

59,47,74,720

36,81,95,462

1.61

2007

32,74,24,279

25,20,10,952

1.29

2008

27,67,13,720

24,76,65,118

1.12

0.87

Interpretation: Theoretically or by thumb rule the current ration of 2:1 is

considered satisfactory. Higher ratio then this ratio is considered good. Too
much higher ratio is not always good because it may contain slow moving
stock, slow paying debtors and idle cash. Higher ratio free from above defects
is always considered good. In this case the Majestics current ratio has come
down indicating that the company is insufficiently liquid.
2.) LIQUID RATIO: This ratio is calculated as
Liquid Ratio = Liquid Assets
Current liabilities
YEAR

LIQUID ASSETS

CURRENT
LIABILITIES
30

RATIO

2004
2005
2006
2007
2008

3,65,05,929
18,71,47,010
35,00,89,997
16,98,11,233
12,89,09,810

81,00,65,086
28,05,80,225
36,81,95,462
25,20,10,952
24,76,65,118

0.042
0.102
0.95
0.67
0.52

Interpretation: Theoretically or by thumb rule the current ratio of 1:1 is

considered satisfactory. Higher ratio then this ratio is considered good. Too
much higher ratio is not always good because it may contain slow moving
stock, slow saying debtors and idle cash. Higher ratio free from above defects is
always considered good. In this case the Majestics current ratio has come
down indicating that the company is insufficiently liquid. The company is
increasing its current liabilities and decreasing its current assets.

3)Fixed Asset Ratio: this ratio can be calculated as :Fixed Asset ratio: - Fixed Assets
Capital employed

YEAR
2004
2005
2006
2007
2008

FIXED ASSETS
1,00,71,61,338
34,4,67,163
20,9174,434
61,96,10,864
60,64,43,143

CAPITAL EMPLOYED
1,00,71,61,338
65,04,13,645
61,02,71,819
70,00,34,536
64,18,12,152

RATIO
1.104
0.525
0.34
0.89
0.94

Interpretation: This ratio has gone up compared to the previous year as the
company has expanded its fixed assets. Also there is a increase in the capital
employed indicating that there is increase in the overall ratio.

4) Net Working Capital Ratio: it is used to measure the liquidity of the

firm. This can be calculated as below:
NWC Ratio =
YEAR
2004
2005
2006
2007
2008

NWC______
NET ASSETS

NWC
-10,52,39,387
25,27,36,727
22,65,78,958
7,54,13,327
2,90,48,602

Net Assets
17,10,39,187
25,21,98,009
22,65,79,258
70,37,19,538
59,77,84,143
31

RATIO
-0.104
1.01
0.99
0.11
0.05

Interpretation:

Higher is the NWC ratio greater is the ability of the firm

to meet its current obligations. Fall in the ratio indicates that position of the
firm is going towards the negative side and it is not able to meet its current
obligations satisfactorily. The company is not in good condition as net working
capital ratio is going down drastically.
.Leverage Ratio: These ratios explain the extent to which the debt is employed in
the capital structure of the concern. Always company use debt funds along with high
equity funds to maximize after tax profits, thus optimizing the earnings available to
shareholders.
1. Debt Equity Ratio: This ratio can be calculated as
Debt equity ratio = Outsiders Funds
Shareholders funds

YEAR
2004
2005
2006
2007
2008

Outsiders Funds
81,45,20,530
52,07,67,056
53,95,66,358
68,55,71,130
61,02,86,887

Shareholders funds
67,95,67,617
28,30,60,371
30,23,57,507
26,25,23,877
27,91,90,383

RATIO
1.2
1.84
1.78
2.61
2.19

Interpretation: The debt equity ratio indicates that per rupee of the owners
contribution, 2.61 is the contribution of the lenders in 2007 which has declined
to 2.19 in 2008

Turnover Ratios: These ratios are very important for the concern to judge
how well facilities at their disposal are being used or to measure the
effectiveness with which a concern uses resources at its disposal. In short, these
ratios will indicate the asset usage.
1. Working Capital Turnover Ratio: It indicates the velocity of the utilization of
the net working capital. This ratio indicates the number of times the working
capital is turned over in the course of a year. This ratio can be calculated as:

YEAR
2004
2005
2006

Working Capital Turnover Ratio: =

Sales
Net working Capital
Sales
NWC
RATIO
2,16,49,70,274
-10,52,39,387
-20.57
1,10,66,48,558
25,27,36,727
+4.37
1,25,06,25,254
22,65,78,958
+5.51
32

2007
2008

1,16,85,21,856
1,10,33,15,874

7,54,13,327
2,90,48,602

15.49
37.98

Profitability Ratios: it is the overall measure of the companies with regard

to efficient and the effective utilization of the resources at their command. It
indicates the effectiveness of decisions taken by management from time to
time.
1. Gross Profit Ratio : it measures the relationship of gross profit to net sales.
The two basic components of this are sales and the cost of goods sold, this can
be calculated as
G.P. Ratio = Gross Profit
Net sales
YEAR
2004
2005
2006
2007
2008

Gross profit
-4,29,76,167
1,70,27,080
2,15,51,252
-45,415,871
5,22,91,514

Sales
216,49,70,274
66,53,93,069
1,42,71,83,671
1,16,85,21,856
1,10,33,15,874

RATIO
-0.020
0.025
0.015
-0.04
0.05

Interpretation: In 2007 case there is a fall because though the sales had
decreased and manufacturing expenses were more than sales. In 2008, the ratio
has increased as the manufacturing expenses were less than sales but still its
not healthy .

Net Profit ratio: It establishes the relationship between Net Profit and sales
and indicates the efficiency of management in manufacturing and selling. It
measures the overall profitability of the firm. This can be calculated as
N.P ratio= Net Profit after Tax
Net Sales

YEAR
2004
2005
2006
2007
2008

Net profit after tax

-56,24,95,091
1,32,19,397
1,92,10,768
-3,99,07,753
1,71,45,902

Net sales
2,16,49,70,274
58,15,25,560
1,25,06,25,254
1,16,85,21,856
1,10,33,15,874

33

RATIO
-0.020
0.022
0.015
-0.03
0.02

Interpretation: There was an increase in the loss, the firm was bearing from
2006 to 2007 due to decrease in the sales and due to high manufacturing,
selling and administrative expenses. However these were controlled in the next
year leading to a rise in the ratio.
2.

Earning Per Share:- it is small variation of return on equity capital and

it helps in estimating the companys capacity to pay dividend to its equity

shareholders and is calculated as under

EPS =
YEAR
2004
2005
2006
2007
2008

Net Profit after Tax

No. of Equity Shares
Earning Per Share
-26.04
+1.29
+1.86
10.22
10.80

Interpretation: As the profits are increasing and so is the Earning per share,
it shows companys sound capacity to pay the higher dividends to its
shareholders and also issue shares.

Return On Investment: This can be calculated as

ROI=
YEAR
2004
2005
2006
2007
2008

EBIT*(1-T)
Net assets

EBIT
-17,10,39,187
1,70,27,080
2,15,51,252
-3,37,02,035
5,50,97,447

Interpretation:

Net Assets
17,10,39,187
25,21,98,009
22,65,79,258
70,37,19,538
59,77,84,143

RATIO
-0.170
0.07
0.10
-0.05
0.09

The increased ROI indicates the company has enough

earnings and high profits to have the ratio positive which indicates towards the
improved financial condition of the company.

FINDINGS OF RATIO ANALYSIS:

34

Company is now improving upon its financial situation from 2007

by increase in profits which is further due to:
Decrease in manufacturing expenses.
Efficiently employing funds from outside
Selling of the idle fixed assets to generate further funds
Reducing the credit sales and advance payments
Recovering the bad debts
Reducing the inventory level so as to use the funds somewhere
else.

PROJECT REPORT
The projects assigned to me are as follows: To study the process of delivery and suggest some inhouse improvements to increase customer satisfaction
35

 To study the process of quality and suggest some inhouse improvements to increase customer satisfaction

Customer Satisfaction
Increasing competition (whether for-profit or nonprofit) is forcing businesses to
pay much more attention to satisfying customers. (It may help the reader to notice
the role of customer satisfaction in the overall context of product or service
development and management.
Relationship-based customer satisfaction research, often simply referred to as
general customer satisfaction research, encompasses the entire customer
relationship, from price and availability to customer service. In cases where
measuring and improving the customer interaction is critical, a transaction-based
36

customer satisfaction measurement program is typically undertaken. On the other

hand, if your direct contact with the customer is frequent, or if you are interested
in competitive issues such as pricing, quality, and general service, then conducting
relationship-based customer satisfaction surveys would be more appropriate.

Customer satisfaction is an ambiguous and abstract concept and the actual

manifestation of the state of satisfaction will vary from person to person. The state of
satisfaction depends on a number of both psychological and physical variables. The
level of satisfaction can also vary depending on other options the customer may have
and other products against which the customer can compare the organizations
products.
Because satisfaction is basically a psychological state, it is difficult thing to measure
quantitatively. In other words, there are no units of satisfaction that have been
defined. The usual measures of customer satisfaction involve a survey instrument with
a set of statements using Likert Technique or scale. The customer is asked to evaluate
each statement and then select from a scale how much the customer agrees or
disagrees with the statement.

It is important to develop a clear understanding of what exactly the customer wants.

We need to know what our customers expect from the products and services we
provide.
Customer expectations are the customer-defined attributes of your product or service
you must meet or exceed to achieve customer satisfaction.

Customer Expectations are of two types - Expressed and Implied.

Expressed Customer Expectations are those requirements that are written down in
the contract and agreed upon by both parties, for example, product specifications and
delivery requirements. Supplier's performance against these requirements is most of
the times directly measurable.
Implied Customer Expectations are not written or spoken but are the ones the
customer would 'expect' the supplier to meet nevertheless. For example, a customer
37

would expect the service representative who calls on him to be knowledgeable and
competent to solve a problem on the spot.
There are many reasons why customer expectations are likely to change over time.
Process improvements, advent of new technology, changes in customer's priorities,
improved quality of service provided by competitors are just a few examples.
The customer is always right. Supplier's job is to provide the Customer what he
wants, when he wants it.
Customer Satisfaction is customers' perception that a supplier has met or exceeded
their expectations. It is therefore important to periodically update our knowledge of
customer expectations.

What constitutes Satisfaction?

We cannot create customer satisfaction just by meeting customer's requirements fully
because these have to be met in any case. However falling short is certain to create
dissatisfaction.

Major attributes of customer satisfaction can be summarized as:

Product Quality

Product Packaging

Keeping delivery commitments

Price

Responsiveness and ability to resolve complaints and reject reports

Overall communication, accessibility and attitude

We cannot begin to address the customer satisfaction issue till we define the
parameters and measures clearly. It may be easier to track supplier's performance
against stated requirements of quality and timeliness because there is documentary
evidence. Some indication of whether a supplier is meeting the requirements can also
be obtained from data on scrap rates, PPM, complaints database, sales improvements,
repeat orders, customer audit reports etc.
38

What are the Tools?

Customer expectations can be identified using various methods such as

Periodic Contract Reviews

Market research

Telephonic Interviews

Personal visits

Warranty records

Informal discussions

Satisfaction Surveys

Depending upon the customer base and available resources, we can choose a method
that is most effective in measuring the customers' perceptions. The purpose of the
exercise is to identify priorities for improvement. We must develop a method or
combination of methods that helps to continually improve service.

Customer satisfaction key take way

Strategies to reduce bureaucratic processes and create an

ambidextrous culture to support innovation.

Knowledge and skills to observe and understand the needs of

users and customers, develop fast experiments and prototypes with
users, and develop prediction markets

Deeper understanding of brand personality and why good brands

go bad
39

Customer Satisfaction Index (CSI)

The Customer Satisfaction Index represents the overall satisfaction level of that
customer as one number, usually as a percentage. Plotting this Satisfaction Index of
the customer against a time scale shows exactly how well the supplier is accomplishing
the task of customer satisfaction over a period of time.

Customer Satisfaction is determined by the Value to price ratio

i.e. Customer Satisfaction = Value the Customer gets

Price the customer pays

DEFINATION AND CONTARST OF

QUALITY
During the last four decades, the Japanese have successfully utilized quality tools and
methodologies as part of a successful effort to become a leading nation in the
manufacture of a vast array of electronic, automotive, and other goods. Prior to the
1950s, Japan was not known for production of quality, but their quality has
continuously improved until today many American firms are using Japanese products
as a standard against which to measure. How did this situation occur? How did the
40

Japanese move to such a leadership position? And what can we learn from this multidecade progression from low to high quality?
The term quality means different things to different people. For example, a quality
automobile may be one which has no defects and works exactly as we expect. Such a
definition would fit with an oft-repeated definition by J.M Juran (1988): "Quality is
fitness for use." However, there are other definitions widely discussed. Quality as
"conformance to specifications" is a position that people in the manufacturing
industry often promote. Why? Presumably because manufacturing can do nothing to
change the design; hence this definition. Others promote wider views (Gitlow et al.,
1989 or Ozeki and Asaka, 1990), which include the expectations that the product or
service being delivered 1) meets customer standards, 2) meets and fulfills customer
needs, 3) meets customer expectations, and 4) will meet unanticipated future needs
and aspirations. Still others simply ignore definitions and say "I'll know quality when
I see it." It seems that we all 'know' or 'feel' somehow what quality is. A product or
service that exceeds our preconceived idea about the quality of that product or service
is likely to be judged as having "high quality." It is equally clear that the best of a
group of bad products is not likely to be perceived as a quality product.

WHAT IS QUALITY
The term 'quality' is often used in a vague, blurred way. If someone talks about
'working on quality', they may simply mean activities designed to improve the
organization and its services.
Quality is essentially about learning what you are doing well and doing it better. It
also means finding out what you may need to change to make sure you meet the needs
of your service users. Quality is about:
41

knowing what you want to do and how you want to do it

learning from what you do

using what you learn to develop your organisation and its services

seeking to achieve continuous improvement

satisfying your stakeholders - those different people and groups with an

interest in your organisation

The business meanings of quality have developed over time. Various interpretations
are given below:

1.

ISO 9000: "Degree to which a set of inherent characteristics fulfills

requirements."[1] The standard defines requirement as need or expectation.

2.

Six Sigma: "Number of defects per million opportunities."[2]

3.

Philip B. Crosby: "Conformance to requirements."[3][4] The requirements may

not fully represent customer expectations; Crosby treats this as a separate
problem.

4.

Joseph M. Juran: "Fitness for use."[4] Fitness is defined by the customer.

5.

Noriaki Kano and others, present a two-dimensional model of quality: "mustbe quality" and "attractive quality."[5] The former is near to "fitness for use"
and the latter is what the customer would love, but has not yet thought about.
Supporters characterize this model more succinctly as: "Products and services
that meet or exceed customers' expectations."

6.

Robert Pirsig: "The result of care."6]

7.

Genichi Taguchi, with two definitions:

a. "Uniformity around a target value."[7] The idea is to lower the standard
deviation in outcomes, and to keep the range of outcomes to a certain number
of standard deviations, with rare exceptions.
b. "The loss a product imposes on society after it is shipped."[8] This definition
of quality is based on a more comprehensive view of the production system.

8.

American Society for Quality: "A subjective term for which each person has
his or her own definition. In technical usage, quality can have two meanings:
a. The characteristics of a product or service that bear on its ability to satisfy
stated or implied needs;
b. A product or service free of deficiencies."[4]

9.

Peter Drucker: "Quality in a product or service is not what the supplier puts
in. It is what the customer gets out and is willing to pay for."[9]

10.

W. Edwards Deming: concentrating on "the efficient production of the quality

that the market expects,"[10] and he linked quality and management: "Costs go
down and productivity goes up as improvement of quality is accomplished by
better management of design, engineering, testing and by improvement of
processes."[11]
42

11.

Gerald M. Weinberg: "Value to some person".

In simple words Quality is conformance to specifications or the degree to which

products are produced correctly.

Quality Process at MAL

Inspection is done in following stages at Majestic Auto Ltd.

1. LINE INSPECTION :In this the inspection of the product is done in line only.
As soon as the product is manufactured the piece is checked so as to see whether it
conforms to the required specifications or not. If any problem is found the machine is
stopped and the tool and die is readjusted or the problem is located. After locating the
problem and making required adjustments the new piece is again checked till the time
it is found to be okay as per specifications provided in the drawing.
43

Various parameters that are checked during Line Inspection are :1.

Dimension Check

2.

Check for any Dent

3.

Check for any scratch

4.

Check for any crack

5.

Check for any unwanted marks

2. 100% INSPECTION:In this stage of the inspection 100% inspection of the

products is done. This is not possible in all of the products. But wherever possible it is
done. Various stages of 100% inspection are
1. Visual Check: - All the pieces are checked visually for any marks or
dents

which were left unchecked during the line inspection stage.

2. Checking for Critical Parameters: - In this the critical parameters are

checked which are decided by customer at the time of order eg. Internal
diameter, Flatness, Centre to Centre Distance. Various gauges are there
to check the different parameters eg. GO gauge and NOT GO gauge.
Inspection is done as per as standard of IS-2500 PART 1 AT AQL (ACCEPTABLE
QUALITY LEVEL) 0.25-DOUBLE SAMPLING.

BENCHMARKING
The benchmarking process is defined as a systematic way to Identify superior
products, services, processes and practices that can be adopted into an
organization to reduce costs, decrease cycle time, cut Inventory and provide
greater satisfaction to customers."
According to Kehoe (1996) benchmarking can be defined as "measuring
the performance of processes within your organization, comparing these
performance levels with the best in class companies and where deficiencies
exist, and using the information on the best practices to improve your
organization's

own

business

processes." The

idea

of

comparing

your

performance with competitors is clearly not a new concept but has increasingly
44

become a popular quality improvement activity partly because of the following:

There are benefits to be gained from making performance comparisons
across a range of business sectors and not simply with your competitors.
Customers are supplied by a wide range of different types of
organizations and therefore, standards for customer service may be
established by other sectors of commerce and industry.
Looking outside your own industry or business sector can lead to "break
through thinking" and often the implementation of ideas from elsewhere
is more readily achieved.
Internally

generated

improvement

objectives

or

targets

can

be

unnecessarily limited.
Benchmarking is particularly applicable to service organizational or
departments as a mechanism for identifying quality Improvements and
generality the lessons learnt are very much more transferable.

David Kearns defines benchmarking "as the continuous process of measuring

products, services and practices against the toughest competitors or those
companies recognized as industry leader. There are several considerations in
this definition requiring further description. These are described in the ongoing
text as follows:
(i)

Continuous process: Benchmarking should be continuous to be

effective. It is just not performed once and discarded thereafter, on
the belief that the task is done. It must be a continuous process
because industry practices constantly change. Industry leaders
constantly get stronger. Practices must be continually monitored to
ensure that the best of them are uncovered. Only those firms that
pursue benchmarking with a discipline will successfully achieve
superior performance. Complacency is fatal in an environment of
constant change.

(ii)

Measuring:

The

term

benchmarking

implies

measurement.

Measurement can be accomplished in two forms. The internal and

45

external practices can be compared and a statement of significant

differences can be documented. The practices can be quantified to
show an analytical measurement of the gap between practices.
Benchmarking is not just a study of competition but a process of
determining the effectiveness of industry leaders by measuring their
results.
(iii)

Products, services and practices: Benchmarking can be applied to all

facets of business. It can be applied to products, services, practices,
processes and methods. It goes beyond the traditional competitive
analysis to not only reveal what the industry best practices are, but
also obtain a clear understanding of how best practices are used.

(iv)

Companies renowned as industry leaders: Benchmarking should not

be aimed solely at direct product competitors. Benchmarking should
be directed at those films and business functions within firms that are
recognized as industry leaders, as many banks for errors adopt free
document processing.

In the formal sense, benchmarking is an ongoing investigation and learning

experience which ensures that best industry practices are uncovered, analyzed, adopted and implemented. It focuses on what best practices are available
ensures an understanding how they are performed and finally determines the
worth of the practices or how well they are performed.
Need of benchmarking:
Benchmarking is the research for and implementation of better ideas. It is a
blend of quantitative and qualitative research methods well tested and suited to
help people break into new models of effectiveness and efficiency by finding and
studying new approaches, new methods and new processes. Benchmarking
projects begin when theres clearly a need for change and improvement; they
end when the learnings have been turned into improvements to the customer
satisfaction.

To find out where the process is

To determine what not to do i.e. learn from mistakes

To identify quantifiable measures of relative performance

46

To establish what is achievable from an improvement perspective

To understand how other companies have designed their processes

To develop understanding of what works well in other/related industries

47

BENCHMARKING PROCESS AT MAL

The benchmarking process has five generic phases and twelve steps for its
implementation in the organizations.
Phases
Planning

1.
2.
3.

Steps
Earmark what is to be benchmarked?
Identify the best competitor.
Determine the data collection method and start collecting
data.

Analysis

4.
5.

Determine the current performance GAP

Project future performance levels

Integration

6.
7.

Communicate benchmark findings and gain acceptance.

Establish functional goals.

Communication data
for analysis

Give acceptance
for analysis

Action

Maturity

8.

Develop action plans

9.
10.

Implement specific actions and monitor progress.

Recalibrate benchmarks.

11.
12.

Attain leadership position.

Integrate practice into the process.

DOCUMENTS OF DELIVERY
48

PRE DESPATCH INSPECTION(PDI)

In this all the critical parameters are checked before despatching and the
document is sent to customer eg. Thickness, diameter of hole or If there is any old
material it is checked for rust.

QUALITY IMPROVEMENT IN- HOUSE

Proper planning should be top management.

Material should be available every time in warehouse.

Machine should be in proper sequence.

Proper coordination between top management, middle management

and lower management

Cease dependence on mass inspection

Proper flow of material should be there

Skill matrix of all workers should be there

Institute modern methods of training on the job for all, including

management, to make better use of every employee. New skills are
required to keep up with changes in materials, methods, product and
service design, machinery, techniques, and service

Encourage effective two way communication and other means to drive

out fear throughout the organization so that everybody may work
effectively and more productively for the company

Break down barriers between departments and staff areas. People in

different areas, such as Production, Maintenance, Administration,
must work in teams to tackle problems that may be encountered with
products or service

Create constancy of purpose for continual improvement of products

and service to society, allocating resources to provide for long range
needs rather than only short term profitability, with a plan to become
competitive, to stay in business, and to provide jobs

Goal oriented and action taken upon the requirement of the company.

Focus on customer requirement and satisfaction

Focus on the employee requirement and living needs.

DELIVERY
Timely product availability is critical to your projects success to avoid
downtime or additional freight charges. Authorized Swagelok sales and
49

service centers maintain local product inventory to ensure that you receive
products when you need them and delivering the Delivery Management is a
much broader scale of project management. It is the organization,
administration, and supervision of the people, processes, and technologies,
which when combined into a comprehensive plan, provides the business and
technical functions needed to successfully achieve what a client expects to
receive. The person responsible for this type of work is referred to as the
delivery manager, delivery director, delivery vice president, or account
manager depending on the organization. .
There are many stages in the business cycle such as getting a lead, turning
the lead into a prospect, working towards the sale, closing the sale, and then
making the magic happen - delivering what was promised.
Delivery is one of the key parameters which help in achieving customer
satisfaction. It is one major aspect that can either make or break the
customer. So utmost importance is given so as to achieve the scheduled
targets products in time.

EMERGENCY SERVICE
Emergency products service is available around the clock, seven days a
week, all year long. We recognize the high costs of idle equipment and
operating personnel waiting for key components.

DESPATCH SCHDULE OF MOTOR

SCHDULE AS PER AS LG REQUIREMENT

50

FG MOTOR AND STATOR

PALLET

QUALITY CHACKING

STICKER FIXING

PACKING WITH STRIP AND STRACH

SALE INVOICE+ DOCUMENT AND FORM NO.38

SECURITY CHECKING ON DESPATCH AREA

DRIVER DOCUMENT CHECKING ON GATE

SECURITY CHECKING ON DESPATCH AREA

LOADING SECURITY CHECKING ON GATE

SECDULE OF DESPATCH OF MAJESTIC

1. PROPER PLANNING

PLANNING
Planning is defined as the deciding the future course of action. Planning is
one of the most important project management and time
management techniques. Planning is preparing a sequence of
action steps to achieve some specific goal. If you do it
effectively, you can reduce much the necessary time and effort
of achieving the goal.
A plan is like a map. When following a plan, you can always see
how much you have progressed towards your project goal and
how far you are from your destination. Knowing where you are is
essential for making good decisions on where to go or what to
do next.
One more reason why you need planning is again the 80/20
Rule. It is well established that for unstructured activities 80
percent of the effort give less than 20 percent of the valuable
outcome. You either spend much time on deciding what to do
next, or you are taking many unnecessary, unfocused, and
inefficient steps.
Planning is also crucial for meeting your needs during each
action step with your time, money, or other resources. With
careful planning you often can see if at some point you are likely
51

to face a problem. It is much easier to adjust your plan to avoid

or smoothen a coming crisis, rather than to deal with the crisis
when it comes unexpected.
So proper planning is very critical for meeting the delivery
schedule. Different departments like purchase, marketing,
production are involved in the planning so as to avoid any
hiccups later on.

2. Weekly Schedule
After planning out the minute details the tentative schedule for
whole
month is divided into a weekly schedule so as to
make the target more realistic.
Weekly schedule is made according to the
1. Availability of the raw material.
2. Availability of the Man power
3. Availability of the Equipments and tools.
4. Priority of the customers
This weekly schedule is prepared by the Marketing
Department and is further passed on to the Production
Department.

3. Daily Schedule
After making out the weekly schedule, daily schedule is prepared
by the production department in consultation with the marketing
department. After the daily schedule the process of production
begins.

4. Daily Dispatch
Once the production of the day has been achieved the products
are dispatched to the respective parties through the various
transportation agencies via road, railway or air depending upon
the customer requirements and priority attached to the
products.
For the dispatch certain instructions and rules have to be seen.
After the daily production the material goes to the store RG1.For
dispatch from the RG1 store, a SHOP MOVEMENT ORDER (SMO)
is generated.
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Once the SMO is generated, it is put into the system. As soon as

the SMO comes into the system, INVOICE is generated from the
Accounts Department.
After the generation of INVOICE, a MR (MOVEMENT RECEIVED)
is generated so that movement can be taken out for shipment.

Documents required for shipment

INVOICE
For shipment 4 copies of INVOICE are generated.
1. OFFICE COPY:- To be kept with accounts department in the
office
2. ORIGINAL COPY:- To be given to the customer
3. TRANSPORT COPY:- To be submitted on border or barriers
of the other state.
4. MODVAT EXCISABLBE COPY:- To be submitted to the
customer so that he can recover the excise duty

ROAD PERMIT
Roads permits which are also called way bills are issued by
the purchasing dealers to selling dealers to bring the material
inside some of the states e.g. VAT 65 in J & K , ST-38
Haryana , ST -31 in UP, VAT-47 in Rajasthan , FORM -50 in
West Bengal , Form 49 in M.P. and so on. Without which the
goods entering into the states liable for penalty under the
respective state laws.

GATE PASS
This one is generated so as to be given at the gate of factory
premises. Only after receiving the gate pass can the material
be moved out of the factory premises.

TRANSPORT OF LG MOTOR
The delivery of LG Motor depends on two transports:
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1. Best Logestic
2. D.S Transport

MAL TRANSPORTERS OR LOGISTIC

CARRIERS
MAL is in agreement with different transportation or logistic
carriers.
Different transporters at MAL are:1. Pal Freight Carriers
2. Lakshya Cargos
3. Om logistics
4. Ghatge Patel Roadways
5. Supreme Transport

The transporter after receiving the material from the factory

generates a consignment copy which includes the following
details
1. GR no.
2. Customer name and address
3. Type and the quantity of the material
4. No. of cases
5. Weight
6. Invoice Bill Details
7. Date of generation

FOLLOW UP
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After Daily dispatch, next day the quantity scheduled and the
quantity achieved is actually reviewed and if found short
analysis is done so as to find a reason for the delay or shortage.
After proper review, rescheduling is done so as to meet the
required demand.
Review is done on the monthly basis too. A document is
generated of the Schedule and Dispatch for the whole month for
various customers and their various products.
Percentage of total dispatch and total schedule is calculated and
corrective actions are taken if any gap is found at the end of the
month.
The quantity left, if any, is carried over to the next month.

Reasons for the Failure of Delivery

There can be many reasons for the failure of the delivery at the required time.
Some of them can be as follows:

Capacity of the warehouse raw material.

Non Availability of the raw material

Rejection of the raw material

Power Cuts
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Absenteeism of employees

Machine Breakdown

Untrained manpower used

Material not ready due to poor planning

Lack of communication from one department to other

Working Environment not conducive

More working hours reduce the efficiency of the worker raw material.

Change the requirement of buyer.

Delay of the transportation.

Accident of transport

IN HOUSE DELIVERY PROCESS

IMPROVEMENT

Inspection of raw material by shop incharge and stock incharge

Proper planning of Raw Material

Proper coordination between different departments,

Proper coordination and communication between top to lower department.

Proper Preventive Maintenance of machinery

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Making arrangements for electricity through generator

Proper delegation of responsibilities

Skilled Manpower

Conducive Environment for workers

Healthy and cordial relations with vendors

Satisfaction of employee and buyer.

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