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AN ORGANISATIONAL STUDY AT
TV SUNDRAM IYENGAR & SONS PRIVATE LIMITED
By
S.AMUDHA
(Reg.No-212414631001)
of
SREE SASTHA INST...
BONAFIDE CERTIFICATE
Certified that the Project report titled “An Organizational Study at TVS &
SONS”, Chennai is the bona...
DECLARATION
I hereby declare that the project entitled “An Organizational Study at TV
SUNDRAM IYENGAR & SONS PRIVATE LIMIT...
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  1. 1. AN ORGANISATIONAL STUDY AT TV SUNDRAM IYENGAR & SONS PRIVATE LIMITED By S.AMUDHA (Reg.No-212414631001) of SREE SASTHA INSTITUTE OF ENGINEERING AND TECHNOLOGY SUMMER TRAINING REPORT Submitted to the FACULTY OF BUSINESS ADMINISTRATION In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION ANNA UNIVERSITY CHENNAI-600 025 JULY 2015
  2. 2. BONAFIDE CERTIFICATE Certified that the Project report titled “An Organizational Study at TVS & SONS”, Chennai is the bonafide work of Ms. S.AMUDHA (212414631001) under my supervision. Certified further, that to the best of my knowledge, the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this (or) any other candidate. Signature of Faculty Supervisor Signature of Director Submitted for Project Viva-Voce held on …………………… Internal Examiner External Examiner
  3. 3. DECLARATION I hereby declare that the project entitled “An Organizational Study at TV SUNDRAM IYENGAR & SONS PRIVATE LIMITED”, submitted for the M.B.A. Degree, is my original work and the project has not formed the basis for the award any degree, associate ship, fellowship or any other similar titles. Place:Chennai Date:July 20, 2015 S.AMUDHA
  4. 4. ACKNOWLEDGEMENT I take this opportunity to express my profound gratitude and deep regards to Mr.SIVA CM (HEAD-HR TRANSACTIONS) of T V SUNDARAM IYENGAR & SONS PRIVATE LIMITED for offering me the Summer Internship Training in their concern. I thank him/her for his/her exemplary guidance, monitoring and constant encouragement throughout the training. I am obliged to staff members of T V SUNDARAM IYENGAR & SONS PRIVATE LIMITED, for the valuable information furnished in their respective departments. I wish to specially thank Mr.RANJITH. I would like to convey my thanks to Dr. B.Balaji, Director (MBA), Sree Sastha Institute of Engineering and Technology (SSIET), Chennai for providing me the guidelines, framework and faculty which enabled me to proceed in the right direction besides completion of internship report on time. I am thankful to my Faculty Guide Dr. Bhuvana Devi, MBA Department, SSIET for her unflinching support, encouragement and supervision. S.AMUDHA
  5. 5. TABLE OF CONTENTS Page No Chapter 1 – Introduction 1 Terminology 2 Industry Background 5 Recent Trends in Industry 7 Chapter 2 – Company Overview 9 Vision 11 Mission 11 Quality Policy 10 Organizational Hierarchy (Tree Diagram) 12 Product and Service Mix 13 Historical Milestones 15 Customer Profile 16 Awards & Recognition 18 CSR/ Community Initiatives 18 Chapter 3 – Departmental Scenario 19 HR Department 19 Accounts / Finance Department 15 Market / Sales Department 30 I.T. / MIS Department 35 Administration Department 38 R & D Department 40 Production Department 41 Chapter 4 – Training 45 Managerial Skills Imbibed 45 Annexure 53 References 55
  6. 6. LIST OF TABLES S.NO TABLE NO. TABLE TITLE PAGE NO. 1 2.1 PRODUCT LIST 14 2 3.1 EMPLOYEES STRENGTH OF TVS IN ERNAKULAM BRANCH 21 3 3.2 TIME OF OFFICE 22 4 3.3 FINANCIAL HIGHLIGHTS 28
  7. 7. LIST OF FIGURE S.NO FIGURE NO. FIGURE TITLE PAGE NO. 1 2.1 ORGANIZATIONAL HIERARCHY 12 2 3.1 FINANCIAL TRANSACTION STRUCTURE 25 3 3.2 PRE SALES PROCESS 30 4 3.3 CLASSIFACTION OF SALES PROCESS 31 5 3.4 SERVER CONNECTION OF TVS & SONS IN REGIONAL OFFICE 35 6 3.5 ERP SOLUTIONS 36 7 3.6 IT STRUCTURE 37 8 3.7 STRUCTURE OF ADMINISTRATION DEPARTMENT 39 9 3.8 FEEDBACK ON TECHNICAL ISSUES 40 10 3.9 A MOTORCYCLE ENGINE 41 11 3.10 A MOTORCYCLE TRANSMISSION AND DISC BRAKE SYSTEM 43 12 3.11 PRODUCTION PROCESS 44
  8. 8. LIST OF ABBREVIATIONS S.NO ABBREVIATIONS DESCRIPTION 1 2W 2 Wheeler 2 YOY Year Over Year 3 CC Cubic Centimeter 4 CFT Cross Functional Teams 5 SIT Supervisory Improvement Teams 6 QCC Quality Control Circles 7 AAP Associated Auto Parts 8 NVH Noise, Vibration and Harshness 9 PPC Production Planning and Control 10 RFP Request for proposal
  9. 9. CHAPTER -I INTRODUCTION TVS Group is an Indian diversified industrial conglomerate with its principal headquarters located in Chennai and Madurai. Almost all holdings of the group are private. The largest and most visible subsidiary is TVS Motors, the third-largest two-wheeler manufacturers in India. An organization study aims at gaining practical knowledge for the students which helps the students in equipping themselves to the dynamic world of business and stiff competition. The study intents to give a chance for the MBA aspirants to see how the practical knowledge gained by them is putting into practice in a business organization. The scope of the study is to analyze the working of different functional departments is an organization. The study is conducted at the Padi plant in Chennai of Automobile production unit. Where the company is having the functional departments such as the production department, Marketing department, Finance department and the Human Resource department. The unit is constructed and maintained in such a way that which is attractive and at the same time environment friendly. The one month study report of the organization which aimed at integrating theoretical knowledge of a student with the practical application is as presented below. This report contains the entire available details regarding the TVS. A CENTURY OF QUALITY & TRUST The TVS group, right from its inception, believed in its destiny of growth, success and longevity. The method and integrity of conducting business is what sets TVS apart from the rest. The company was born in 1911, thanks to the ambitious dreams of the founding father, T V Sundaram lyengar, who refused to settle managing smaller businesses like bus fleet operations or vehicle servicing. He wanted to build a business that would create a family of like-minded individuals pursuing only the best in quality and standards. And he made his dreams a reality. The success of the TVS group is rooted in their founder's personal belief system - commitment to the values of trust and customer service. In fact, although the company is named after the founder, the letters TVS have always stood for Trust, Value, and Service within thecompany. This remains the guiding, overarching philosophy by which the group functions. It was only natural that success and market leadership followed. Today, the TVS group is one of India's leading suppliers of automotive components, with a work force of 40,000 people across 30 companies with an annual turnover of USD 7.29 billion. The first four companies in India to have won the coveted Deming Prize are from the TVS group.
  10. 10. 1.1 TERMINOLOGY 1.1.1 AML: (Approved manufacturer list) A set of approved relationships between manufacturer parts and a company’s internally defined parts. 1.1.2 APQP :( Advanced product quality planning) A framework of procedures used to develop products in the automotive industry. 1.1.3 AVL :( Approved vendor list) A list of all the vendors or suppliers approved by a company as sources from which to purchase materials. 1.1.4 BOM (Bill of materials):The list of parts or items that make up a product assembly. A complete product BOM often includes subassemblies, which may represent different steps in the assembly process. For instance, a lawn mower may include the following elements: a handle assembly, a metal deck assembly, a control assembly, a motor and a blade assembly. 1.1.5 BOM Level :( Bill of materials level) The place occupied by a part or assembly in the hierarchy of a BOM. 1.1.6 CAPA :(Corrective action/protective action) A good manufacturing practice (GMP) concept, in which product failures are investigated in an attempt to correct their current occurrence (corrective action) and/or prevent similar occurrences in the future (protective action). 1.1.7 CAR :( Corrective action request) A change request documenting a critical problem with a product. 1.1.8 ECN: (engineering change notice) and ECO (engineering change order). 1.1.9 CM :(Contract manufacturer) A firm hired by a company to manufacture or assemble its product or part of its product. 1.1.10 DCR :(Document change request) A change request which details a problem with a document, specification or SOP (standard operating procedure) and proposes a change to fix it. 1.1.11 DHF: (Design history file) A collection of records that describes the design history. 1.1.12 ECAD Software :(Electrical computer aided design software) Software used in the design and development of electronic systems such as printed circuit boards (PCBs) and integrated circuits (ICs).
  11. 11. 1.1.13 FFR :(Field failure request) A change request which details a problem with the product as observed in the field. 1.1.14 GMP :(Good manufacturing practice) A set of guidelines for how to manage each aspect of production and testing that can impact the quality of a product. 1.1.15 Item :A part, process or document included in a manufacturer’s product record. 1.1.16 Item Master :List of all components that a manufacturer buys, builds or assembles into its products. The item master includes information like the size, shape, material, manufacturer, manufacturer part number and vendor for each component. 1.1.17 JIT :(Just in time) A strategy used to monitor inventory levels with the goal of reducing inventory and associated carrying costs. 1.1.18 Made-to-Spec :Describes an item that is made to a company’s specifications internally or by a supplier. 1.119 MCAD Software :(Mechanical computer aided design software) Software used by mechanical engineers to develop concepts and designs of mechanical systems. 1.1.20 MCR :(Manufacturing change request) A change request used to propose a manufacturing change that does not require a design change to an item. An example is a change to the approved manufacturer list (AML). 1.1.21 MWI :(Manufacturing work instructions) Information and directions on how to perform a manufacturing task. 1.1.22 NPD : process (New product development process) A disciplined and defined set of tasks and steps that describe the normal means by which a company repetitively converts embryonic ideas into salable products or services. 1.1.23 NPI :(New product introduction) The market launch or commercialization of a new product. NPI takes place at the end of a successful product development project. 1.1.24 OEM :(Original equipment manufacturer) The original manufacturer of a product that may be sold or marketed by another company. 1.1.25 Off-the-Shelf :Describes an item that is procured from a supplier as-is, with no modifications.
  12. 12. 1.1.26 PDM System :(Product data management system) Also referred to as a “work in progress (WIP) vault” or file repository. A PDM system is used to hold mechanical CAD files, including parts and assembly models as well as drawing files. 1.1.27 Product Record: A general term that describes all design, manufacturing, quality, sales and repair information about a product. 1.1.28 Prototype: An engineering-quality sample build of a product, typically intended to test high-risk aspects of the design. 1.1.29 Redline: is the marking of an assembly drawing or bill of materials (BOM) to indicate a modification. 1.1.30 Revision Control: The process of tracking and documenting changes to a product, part, process, program, design or document. 1.1.31 RMA :(Return material authorization) A financial and work order tracking key to identify a returned item’s origination. 1.1.32 SCAR: (Supplier corrective action request) A change request describing an issue with a part, process or component from a supplier and asking for a resolution. A SCAR sometimes includes details about how the complaint should be addressed. 1.1.33 SKU :(Stock keeping unit) A unique sales stock identifier usually controlled by the business side of a company. A SKU is generally disassociated from the engineering definition and engineering change controls for a product. 1.1.34 SOP :(Standard operating procedure) A written document or instruction detailing all steps and activities included in a process or procedure. 1.1.35 TTM :(Time to market) The period of time from development of a product concept to availability of the finished product. 1.1.36 UOM :(Unit of measure) Describes how manufacturers use or buy a part. The most common UOM is “each,” but standard measures like feet, inches, pints, drops, box, etc. can also be used.
  13. 13. 1.2 INDUSTRY BACKGROUND Automotive industry, all those companies and activities involved in the manufacture of motor vehicles, including most components, such as engines and bodies, but excluding tires, batteries, and fuel. The industry’s principal products are passenger automobiles and light trucks, including pickups, vans, and sport utility vehicles. Commercial vehicles (i.e., delivery trucks and large transport trucks, often called semis), though important to the industry, are secondary. The design of modern automotive vehicles is discussed in the articles automobile, truck, bus, and motorcycle; automotive engines are described in gasoline engine and diesel engine. The development of the automobile is covered in transportation, history of: The rise of the automobile. The history of the automobile industry, though brief compared with that of many other industries, has exceptional interest because of its effects on 20th-century history. Although the automobile originated in Europe in the late 19th century, the United States completely dominated the world industry for the first half of the 20th century through the invention of mass production techniques. In the second half of the century the situation altered sharply as western European countries and Japan became major producers and exporters. Although steam-powered road vehicles were produced earlier, the origins of the automotive industry are rooted in the development of the gasoline engine in the 1860s and ’70s, principally in France and Germany. By the beginning of the 20th century, German and French manufacturers had been joined by British, Italian, and American makers. Yet, the effect on city life has been, if anything, more prominent than the effect on the farms. The automobile has radically changed city life by accelerating the outward expansion of population into the suburbs. The suburban trend is emphasized by the fact that highway transportation encourages business and industry to move outward to sites where land is cheaper, where access by car and truck is easier than in crowded cities, and where space is available for their one or two story structures. Better roads were constructed, which further increased travel throughout the nation. As with other automobile-related phenomena, the trend is most noticeable in the United States but is rapidly appearing elsewhere in the world. TVS Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual revenue of more than Rs. 10,131 Cr in 2014-15 (around USD 1.6 billion), and is the flagship company of the, USD 7.29 billion in 2013-14, TVS Group. The company has a production capacity of 3 million 2 wheelers & 1.2 Lakh 3 wheelers a year. TVS Group spans across industries like Automobile, Aviation, Education, Electronics, Energy, Finance, Housing, Insurance, Investment, Logistics, Service, textiles. Has over 90 Companies under the umbrella.TVS Motor Company Ltd (TVS Motor), member of the TVS group, is the largest company of the group in terms of size and turnover.
  14. 14. 1.2.1 A VEHICLE FOR EVERYONE TVS Motor currently manufactures a wide range of two-wheelers. Take your pick from mopeds to racing inspired motorcycles.  Motorcycles (Apache Series RTR, Phoenix 125, StaR City+, Sport, Max4R)  Scooters (Jupiter, Wego, Scooty Zest 110, Scooty Streak, Scooty Pep +)  Mopeds (TVS XL Super, TVS XL Heavy Duty) 1.2.2 MANUFACTURING LOCATIONS The Company has four manufacturing plants, three located in India (Hosur, Tamil Nadu and Mysore, Karnataka and Nalagarh, Himachal Pradesh) and one in Indonesia (Karawang). 1.2.3 INNOVATION AT THE HELM TVS Motor's strength lies in design and development of new products. We at TVS deliver total customer satisfaction by anticipating customer need and presenting quality vehicles at the right time and at the right price. The customer and his ever changing need is our continuous source of inspiration. We have proved time and again that this sense of responsiveness along with a penchant for quality is a winning formula. The company has many firsts to its credit including the fact that we launched seven vehicles on the same day - a rare feat in Automotive history. 1.2.4 INSPIRING MILLIONS OF SMILES TVS has always stood for innovative, easy-to-handle, and environment-friendly products, backed by reliable customer service. More than 28 million customers have bought a TVS product to date. Innovative, easy to handle, environment-friendly and backed by reliable customer service, TVS products give you only reasons to smile!
  15. 15. 1.3 RECENT TRENDS IN INDUSTRY 2W industry volume growth in 5m 2014-15 gears up to 14.8% YoY, the fastest pace of growth since 2010-11 The Indian two-wheeler (2W) industry, the largest in the world in terms of volumes, had demonstrated positive volume growth in the last three years (2011-14) even when some of the other automobile segments such as passenger vehicles and commercial vehicles experienced volume contraction in at least one of the last three fiscals. In 5m 2014-15, the 2W industry’s growth was even stronger with sales volumes expanding by a healthy 14.8% YoY, the fastest pace of growth since 2010-11. While strong demand for scooters (contributed 27% to domestic 2W industry sales volumes in 5m 2014-15) has been the primary driving force behind overall 2W industry expansion in the last three years, the motorcycle segment’s contribution to 2W industry growth too gained force in 5m 2014-15 by virtue of greater replacement demand and new model launches by various Original Equipment Manufacturers (OEMs). Volume growth of scooters at 30.7% in 5m 2014-15 stays robust; strong segment growth over the years induces proliferation of new model launches In the last five years, the share of scooters in total domestic 2W sales volumes has increased from 15% in 2008-09 to 24% in 2013-14 (27% in 5m 2014-15). In terms of recent trends, while domestic motorcycle sales volumes grew by 10.0% YoY in 5m 2014-15, the volumes of scooters expanded by a robust 30.7% YoY during the same period. The fast expansion of the scooter segment’s pie has encouraged most OEMs in India to launch new models to capitalize on the growing opportunity offered by this segment. In 2012-13, three new scooter brands were launched in India, but the count of new brands introduced increased to six in 2013-14; and in 5m 2014-15, already four new models have been launched by various OEMs with more being in the pipeline. Compared to motorcycles (targeted at males), the penetration of scooters (targeted at both males and females) remains lower by a factor of 3-4 times which has been one of the primary drivers of demand for scooters as positioning of this product segment has become sharper. As scooters get increasingly targeted at both the sexes and as more women adopt mobile lifestyles, the case for continued penetration-led growth for the scooters segment remains strong. The increased supply push in the form of new scooter launches should only add to the growth momentum. TVS, that had been steadily losing market share for three years till 2013-14, improved the same to 12.9% in 5m 2014-15 (11.8% in 2013-14) on the back of new model launches including Jupiter (110 cc scooter), Star City+ (110cc bike) and Scooty Zest (110cc scooter).
  16. 16. 1.3.1 MANUFACTURING EXCELLENCE The management philosophy is based on five pillars of TQM (Total Quality Management) - Management Commitment, Customer Focus, Quality Costs, Quality Systems and Continuous Improvement - which rests on the foundation of Total Employee Involvement Program, Daily Management and Kaizen.  The Total Employee Involvement Program: The Total Employee Involvement program ensures that responsibility for the company's performance is the shared responsibility of employees at all levels. It provides the employees with the opportunity to be involved in breakthrough activities and other improvements, over and above their daily routine.  Daily work management: Daily work management consists of defining and monitoring key processes, ensuring that they meet set targets, detecting abnormalities and preventing their recurrence. TVS Motor encourages continuous improvement in all aspects of work, using Cross Functional Teams (CFT), Supervisory Improvement Teams (SIT) Quality Control Circles (QCC) and suggestion schemes.  What about Kaizen? The five pillars start with policy management, which is used to arrive at the annual breakthrough objectives. There are generally not more than three company objectives, arrived at after a detailed exercise, which are deployed and reviewed periodically. The company conducts an exhaustive range of training programs, utilising both in- house skills and consultants from all over the world. The programs are conducted for all employees, at all levels.
  17. 17. CHAPTER - II COMPANY OVERVIEW TVS Motor Company was incorporated in 1982. It is third largest two-wheeler manufacturer in India and one among the top ten in the world. TVS Motor is the flagship company of the $4 billion TVS Group. The company manufactures a wide range of two wheelers such as mopeds, scooters and motorcycles. It has four manufacturing facilities located at Hosur, Mysore, Himachal Pradesh and Indonesia and a production capacity of 300 thousand units a year. In the motorcycles segment company it has created brands like TVS Apache, TVS Star and TVS Flame. Invariomatic scooters segment TVS Motor manufactures brands like TVS Scooty Pep + and TVS ScootyTeenz. It has created brands like TVS XL Super and TVS XL Heavy Duty in mopeds segment. TVS Group is an Indian diversified industrial conglomerate with its principal headquarters located in Chennai and Madurai. Almost all holdings of the group are private. The largest and most visible subsidiary is TVS Motors, the third-largest two-wheeler manufacturers in India. TVS Group, with group revenue of more than US$6 billion, is an automotive conglomerate company, specialized in manufacturing of two-wheeler, three-wheeler, auto- electricals components, high tensile fasteners, die casting products, brakes, wheels, tyres, axles, seating systems, fuel injection components, electronic and electrical components and many more. From its beginnings at the turn of the 20th century, TVS Group has grown to become the largest manufacturer and distributor of auto components in India. TV SundramIyengar and Sons is the holding company of the TVS Group; the founder was T. V. SundramIyengar from Madurai, Tamil Nadu,Management of almost all companies is by family members. Most of the group companies maintain a low profile and follow a conservative management style. NOTABLE COMPANIES IN THE GROUP TVS Srichakra: Leading manufacturer of two and three wheeler tyres in India. It was started as an independent company without any joint venture with any other foreign company. It is one of the fastest growing company in the TVS group with complete range of two and three wheeler tyres. It is market leader in the original equipment manufacturing segment and one of major player in the after market segment.
  18. 18. TVS Motors: The flagship company. It was started as a Joint Venture between Sundaram Clayton, a group company, and Suzuki Motors, Japan. Subsequently the partners went their separate ways. Revenue was approximately US$1.76 billion in 2006-2007. Headed by Venu Srinivasan. ZF Electronics TVS (India) Private Limited : (Formerly TVS Cherry Private Limited) The company manufactures precision snap action switches, sensors and electromechanical assemblies in India.[2] Sundram Fasteners: The Company is the biggest maker of industrial fasteners in India. TVS Infotech (TVS): TVS is an Enterprise Solutions provider for industries like Manufacturing, Automotive, Trading & Distribution and Engineering & Construction. Sundaram Finance: The financial services arm of the group was established in 1954. It owns majority or substantial stakes in Royal Sundaram Alliance General Insurance Company, Sundaram BNP Paribas Mutual Fund and Sundaram BNP Home Finance Limited. It also has subsidiaries for the distribution of financial products, BPO and IT related fields. It has revenues of approx. Rs.600 crores in 2006-2007 with a workforce more than 2000. It is headed by T.T.Srinivasa raghavan. Sundaram Infotech: The wholly owned IT Subsidiary of Sundaram Finance Ltd., sells enterprise resource management solutions to mid-sized companies through Microsoft Dynamics (AX, NAV, CRM, and LS Retail). SundaramInfotech flogs vertically oriented ERP solutions in Manufacturing, Retail & Distribution, Trading & Logistics, Automotive, New Seed (Agro) and Financial services. Delphi TVS: Manufactures fuel injection components for diesel engines in collaboration with Delphi Automotive, U.S.A. at its manufacturing facilities located at Mannur, Chennai, around 38 km from Chennai. Wheels India: The company manufacturer’s automotive wheels and air suspension in collaboration with Titan Plc, UK. It had revenues of Rs.1000 crores in 2006-2007. It is headed by Mr. S. Ram. Axles India: A subsidiary of Wheels India, the company manufactures axles used in commercial vehicles. It is headed by S.Ram. It had revenues of Rs.300 crores in 2006-2007. Brakes India: The Company manufactures automotive brakes, iron castings and plastic moulding. It has manufacturing facilities at 6 locations. It is headed by S.Viji. It had revenues in excess of Rs.1000 crores in 2006-2007.
  19. 19. Turbo Energy Limited: Manufactures turbo chargers for diesel engines in collaboration with BorgWarner Turbo Systems, U.S.A. at its manufacturing facilities located at Pulivalam, around 100 km from Chennai. 2.1 VISION 2.1.1 Driven by the customer TVS Motor will be responsive to customer requirements consonant with its core competence and profitability. TVS Motor will provide total customer satisfaction by giving the customer the right product, at the right price, at the right time. 2.1.2 The Industry Leader TVS Motor will be one among the top two two-wheeler manufacturers in India and one among the top five two-wheeler manufacturers in Asia. 2.1.3 Global overview TVS Motor will have profitable operations overseas especially in Asian markets, capitalizing on the expertise developed in the areas of manufacturing, technology and marketing. The thrust will be to achieve a significant share for international business in the total turnover. 2.1.4 Committed to Total Quality TVS Motor is committed to achieving a self-reviewing organization in perpetuity by adopting TQM as a way of life. TVS Motor believes in the importance of the process. People and projects will be evaluated both by their end results and the process adopted. 2.1.5 Responsible Corporate Citizen TVS Motor firmly believes in the integration of Safety, Health and Environmental aspects with all business activities and ensure protection of employees and environment including development of surrounding communities. TVS Motor strives for long-term relationships of mutual trust and interdependence with its customers, employees, dealers and suppliers. 2.2 MISSION We are committed to being a highly profitable, socially responsible, and leading manufacturer of high value for money, environmentally friendly, lifetime personal transportation products under the TVS brand, for customers predominantly in Asian markets and to provide fulfilment and prosperity for employees, dealers and suppliers.
  20. 20. 2.3 QUALITY POLICY To ensure that Pace meets its responsibilities and obligations to our customers, our people, our partners, our suppliers and to our shareholders we are committed to five quality objectives: 1. Deliver on-time & on-quality products, systems and services that meet or exceed our customers’ & users’ expectations 2. Identify and understand our customer's expectations, measure customer perceptions, and implement improvements to increase customer satisfaction & loyalty 3. Enable and engage our people at all levels to continuously improve quality and operational performance along the whole value chain from suppliers to customers 4. Increase the motivation and skills of our people to add value to our customers and our businesses, through training and coaching 5. Engage our partners & suppliers to continuously improve our products and our businesses from product design through manufacture and delivery. 2.4 ORGANIZATIONAL HIERARCHY FIGURE 2.1 ORGANIZATIONAL HIERARCHY MANAGING DIRCTOR SALES MANAGER WORKSHOP MANAGER SALES EXECUTIVE 1 SALES EXECUTIVE 2 DIRECT MARKETING SUPERVISOR FLOOR SUPER VISIOR SPARES MANAGER SPARE BILLING SPARE SALE EXECUTIVE SPARE PURCHASING WASHING FLOOR SUPERVISIOR
  21. 21. 2.5 PRODUCT & SERVICE MIX  2.5.1 Marketing mix of TVS  Product TVS broad product categories include Domestic range, three wheelers, International range.TVS motors is the only two wheeler automobile which has its penetration all consumer segments. They have products like Apache ATR which caters to sports segment, TVS super XL to rural, Scooty pep to young and dynamic women, Flame and Star City to working professional. Hence their product category meets the needs from rural to urban life style. They also have their presence in three wheeler segments. Recently they launched TVS Jive which is first clutch free bike.  Price TVS, a unit of TVS group is which is a 100 year old group is known for its strong values. There pricing strategy varies according to product category and the consumer segment. The pricing is often economical pricing with focus on quality and Indian pricing values and sentiments.  Place TVS have around 2000 country wide main dealer show rooms and service stations attached to it. Manufacturing plants of TVS are located at Hosur, Mysore, Nalagarh and Karawang in Indonesia. There are also sub dealers who are engaged in selling multiple brands in their show rooms with proper agreements.  Promotions The promotional strategies involve placing brand ambassadors for each product specific to geographic division (North India and South India).ViratKohli ,Dhoni for North India, Actor Surya and Trisha for south India. The promotional activities include dirt bike rally, MRF super cross championship rally promotional events in Malls etc.TVS motors majorly concentrates on rural markets.
  22. 22. 2.5.2 PRODUCTLIST TABLE 2.1 PRODUCT LIST Product Name Year Month Sales Quantity Sales Value(Rs. Million) % of STO Motorcycles 2014 7.86 30614.1 35.38 Scooters 2014 4.74 16097.70 18.61 Mopeds 2014 7.33 14702.3 16.99 Raw Materials, Spares and Accessories, Provision of Technical know-how and Plant & Equipment 2014 0 9473.4 10.95 Three-Wheelers 2014 0.8 7689.5 8.89 Being the trading and distribution arm of the group, the business activities of TVS & Sons include Dealerships for automobile vehicles, Distribution of spares for after–market, products for off highway application like Construction & Material handling. The global business operation of the company includes establishing & managing Joint ventures / Alliances for automobile distribution / dealership business, sourcing and supply chain related activities. Currently it has its presence in Srilanka and Bangladesh. TVS & Sons distributes Commercial Vehicles, Multi Utility & Sports Utility Vehicles, three wheelers, passenger cars representing various leading automobile vehicle manufacturers such as Ashok Leyland, Mahindra & Mahindra, Mahindra Navistar, Daimler Chrysler, General Motors, Honda, Renault, Volkswagen and off highway equipment manufactured by Escorts, JLG, Ingersoll Rand, Pal Finger & Leyland Deere. The company is also the largest distributor of automobile spare parts in the country, handling more than 80 suppliers, 8090 customers and 35000 part numbers and markets TVS Quality Branded Products. TVS PartSmart is a five year old business which is into Retailing of Multi Brand Commercial Vehicles spare parts. This new retail initiative is presently having 21 Franchisees across the Tamilnadu state and plans to expand into other states making it Pan India by 2015. This is a Franchisee Concept and the Shoppe is branded as TVS PartSmart, Multi Brand Truck parts shop.
  23. 23. 2.6 HISTORICAL MILESTONE  1911 TVS & Sons established in Madurai, Tamil Nadu  1912 Starts first rural bus service in Southern Tamil Nadu {from Pudukottai to Thanjavur }  1919 Forays into vehicle sales, service and spare parts  1929 Foray into Dealership Business representing General Motors  1930 Bus Body Building operations started  1936 Madras Auto Service acquired  1939 Southern Roadways started & Built TVS Service station, Biggest in Asia then  1943 Designs a unique gas plant that uses charcoal gas as fuel instead of petrol which was in short supply during World War II  1945 Sundaram Motors formed  1956 T V SundramIyengar was honoured by the Union Government of India by unveiling busts in Bronze and in Marble in the city of Madurai (Tamilnadu).  1996 Enters logistics business  2003 Enters customers centric car service business under brand name "MyTVS"  2004 Logistics business was hived off as a separate company called "TVS Logistics Services Limited"  2008 Forays into parts retail business for Heavy & Light Commercial Vehicle under brand name "TVS PartSmart"  2011 MyTVS, the Customer Centric Car services business was hived off as a separate company called "TVS Automobile Solutions Limited"  2012 The All Car Services business of TVS Automobile Solutions Limited expanded its network into Kolkata & Gujarat through separate JV's  2012 Acquisition of Universal Component, United Kingdom.
  24. 24. 2.7CUSTOMER PROFILE  2.7.1 DEALERSHIP BUSINESS - Ashok Leyland - Mahindra & Mahindra - Mahindra Navistar - Leyland Deere - Renault India - Off Highway Equipment  2.7.2 DISTRIBUTIONBUSINESS TVS & Sons is one of the largest automobile spare parts distributors in India. It sells over 35,000 part numbers, manufactured by more than 80 suppliers and caters to over 8,090 customers across the country. Sophisticated warehousing facilities with state of the art IT infrastructure enables smooth procurement and deliveries Market quality products under the name of TVS Brand, with a key communication - TVS Quality Spare Parts - Move Safe with us. In pursing business excellence, TVS & Sons. Is committed to supplying genuine spare parts and ensure timely delivery to its customers. The company regularly innovates and improves its systems and processes to enhance customer/supplier satisfaction.  2.7.3 TVS PARTSMART This is an extended arm of distribution business and is a franchisee model. Currently, the parts retail market is highly fragmented, largely un organised, large supply chain inefficiencies and credit driven. TVS & Sons have a huge opportunity to cater to the customers since OES caters only 20-25% of after-market through dealers and 75-80% are serviced through distributors and others. Customer dissatisfaction is largely felt in a) quality b) price c) reliability d) safety. Thus, there is an urgent need to improve share of organized retail in auto parts. On account of this, the company identified three customer categories - 1) retailers 2) fleet operators and 3) garage owners. TVS PartSmart initiative addresses the following: For the Retailers margin, investment, obsolescence, succession is the concerns and it is addressed with assured, reasonable, minimal obsolescence and opportunity for the next generation. For the Fleet operators concerns on genuineness, inconsistent pricing, vehicle downtime and availability are addressed with assured quality of spares, uniform pricing, minimum downtime
  25. 25. and anytime availability. For the Garage owners concerns similar to the above and technology know how, it addresses with continuous training and up gradation. TVS PartSmart would initially serve commercial vehicle customers. The offering would be genuine & reliable parts, uniform pricing, full range coverage, store's inventory transparency for frequent replenishment, in store promotions and below the line activities, web based on demand solutions. This initiative would provide opportunity for the supply chain to promote their brands at the point of sales, to train mechanics in use of products, to build loyalty programs, Pan India reach, assured availability of genuine parts and protection from spurious parts. TVS and Sons offers integrated web based, on demand software solution, Net working of mother warehouse with franchisee shops, transparency of shop inventory and promise supply chain efficiency. TVS PartSmart stores will bring great value to all stake holders by offering reliable products at affordable price with dedicated manpower and all outlets will provide a unique purchasing experience. TVS Partsmart franchisee model outlets will sell commercial vehicle parts and will expand its network and be operational across India. TVS & Sons is committed to creating an environment for the development of employees, to cater the future needs of the organization. The Associated Auto Parts (AAP) Limited was established and incorporated on 15th January 1944 as a Private Limited Company at Bombay (now Mumbai) as an Authorized Jobber for General Motors. It was started primarily for distributing GM parts in Western India and was promoted by four families. It was the pioneering effort by the families in the trade of Auto Spare Parts Distribution business, 68 years ago, in Western India. In May 2008, three of the four original Promoter families desired to exit the business while, one of the Promoter families wished to continue the business and hence by a unanimous consensus invited TVS & Sons, Madurai, to acquire the stake of the exiting 3 families and invest to carry forward the goodwill and legacy of the Company. The Company is now a Joint Venture between TVS & Sons and with the remaining Promoter – Rasesh Associates (R ADoshi family) who chose to stay invested - continuing to manage the business with the active support of the Holding Company. With this, the company has also been re-capitalized, which has been one of the reasons for the Company to grow rapidly, the benefits of which have accrued to all the stake holders.
  26. 26. 2.8 AWARDS & RECOGNITION  2.8.1 DEMING QUALITY AWARD  Sundaram Clayton  Sundaram Brake Linings  Brakes India  Lucas-TVS  TVS Motor Company  2.8.2 JAPAN QUALITY MEDAL  Sundaram Clayton  2.8.3 TPM EXCELLENCE AWARDS  Sundaram Fasteners  TVS Rubber  Brakes India  TVS Tyres  TVS Motor Company  2.8.4 GM NORTHAMERICA, BEST SUPPLIER AWARD  Sundaram Fasteners (five consecutive years 2.9 CSR / COMMUNITYINITATIVES TVS & Sons has been carrying out corporate social responsibility activities much before its due recognition and has recognized the responsibility to serve the community they operate in. TVS believes that all stakeholders must benefit, whether it is employee welfare or involvement of the employees in fulfilling the needs of the society. The company had joined hands with the local administrative body and tested drinking water samples, recommended corrective measures along with educative handouts and distributed preventive medicine for affected people for eradication of malaria during last monsoon season. The company has been conducting regular health check-ups, eye donations, blood donation camps, distribution of wheel-chairs, awareness camps, assistance to Salvation Army Leprosy hospital, distribution of uniforms and scholarship for education to the needy, were conducted in all outlets across the country.
  27. 27. CHAPTER - III DEPARTMENT SCENARIO 3.1 HUMAN RESOURCE DEPARTMENT Human resource is the real asset of every organization. Human resource department in TVS is known as Personal Service Department. Personal Service Department focuses on and influences the people who work in the organization. TVS has a good personal department which always looks forward to efficiency, welfare and security of the employees. Responsibility of personal department is to ensure maximum utilization of human resource. 3.1.1 FUNCTIONSOF PERSONNELDEPARTMENT  Framing personnel policies  Implementing programs  Selection of personnel  Scientific placement  Induction and orientation  Establishing good industrial relations  Effective communication  Motivating the personnel 3.1.2 HUMAN RESOURCE PLANNING Human resource or man power planning is “the process by which a management determines how an organization should move from its current position to its desired manpower position. Through planning, a management strives to have the right number and the right kind of people at the right places, at the right time, to do things which results in both the organization and individual receiving the maximum long range benefit. HR Planning implemented at TVS & SONS LTD attempts to the following 1. To carry on its work with the personnel with necessary qualification, skills, knowledge, work experience and aptitude for work that is right person at right job at right time. 2. In order to meet the needs of expansion of the organization. 3. To meet the challenges of a new and changing technology and new techniques of production. 4. For identifying the areas of surplus employees and shortage of employees and making it good for the organization.
  28. 28. 3.1.3 RECRUITMENT Recruitment is concerned with the process of attracting qualified and competent personnel for different jobs. This includes the identification of existing sources of labour market, the development of new source, and the need for attracting large number of potential applicants so that a good selection may be possible. In TVS, they use both internal and external sources for recruitment. The important internal sources are: 1. References 2. Resumes 3. Transfer 4. Promotion The important external sources of recruitment are 1. News paper 2. Advertisements 3. Placements 4. Websites-naukri 3.1.4 STEPSIN THE RECRUITMENTWHICH ARE FOLLOWED BY THE ORGANISATION 1. Approved man power indent 2. Applicants internal/external 3. Shortlist applicants with assistance of Line Manager 4. Send Call letter 5. Get filled the printed application format 6. Verify the certificates filled in the application 7. Conduct written test if any 8. Direct candidate to Line Manager with evaluation format 9. Go through the evaluation form on its return 10. Make a diary noting for follow up/statistical purpose 11. Negotiate for salary and ask the candidate to produce the PAN no 12. Prepare and send new recruitment format 13. Follow up for approval 14. Direct the candidate for medical examination 15. Send employment notification to the government 16. Prepare appointment order 17. Serve the appointment order, adhere to formalities for nomination, ESI, company hospital, Treatment, conveyance etc
  29. 29. 18. Give general induction or prepare a programme 19. Explain time office and canteen procedures 20. Direct him to SBU concerned and call for Ecode, EPF NO, and EPS NO 21. Open a personnel file and payroll data 22. Open bank account and perform data updating 23. Ask the new entrant and provide the new entrant 24. Update records 3.1.5 SELECTION Selection process is concerned with development of selection policies and procedures and the evaluation of potential employees in terms of job specification. This process includes the development of application blanks, valid and reliable tests, interview technique employee referral system, evaluation and selection of personnel in terms of job specification, the making up of final recommendations to the line management and the sending offers and rejection letters. In TVS the selection process is carried out on the basis of qualification of the candidate. For each job the required qualifications are fixed by the company. On the basis of these the selection is done. The experience of the candidate has an important role in the selection process. Selection process involves personnel interview, medical tests for identifying the physical fitness of the candidates. 3.1.6 EMPLOYEES STRENGTH OF TVS IN ERNAKULAM BRANCH TABLE: 3.1 EMPLOYEES STRENGTH OF TVS IN ERNAKULAM BRANCH MANPOWER NUMBER EXECUTIVE OFFICERS 66 GENERAL STAFF 45 WORKMEN 82 GRAND TOTAL 193 3.1.7 TRAINING AND DEVELOPMENT Training is complex process and is concerned with increasing the capabilities of individuals and groups so that they may contribute effectively to the attainment of organizational goals.
  30. 30. 3.1.8 TRAINING IN TVS The organization provides training to all the employees in the organization. The organization has an institution for training namely, Training academy in Madurai. Identify then weak points of the employees and train them. For providing training, the organization use internal persons and also external persons. Training is a continuous process. There is a consultant for evaluating the performance of the employees and there is an appraisal form also marking the performance of the employees. Through this the consultant identifies the area in which the employees are failed, and provide training in that area. Normally here use the on the job training, the employees have a chance for promotion, if he performed well, he will be promoted. The most important limitation of recruitment is that they did not get the right person for right job. The organization have confidence in that if the candidate have an interest in the job they can train them and make suitable to the post. The organization provides product training to all employees when a new product is introduced in the market. Mahindra & Mahindra provides the principle training to its employees. 3.1.9 INDUCTION AND ORIENTATION By induction and orientation is meant the introduction of an employee to the organization and the job by giving him all the possible information about the organization’s history, objectives, philosophy, policies, future development opportunities, products, goodwill in the community, and by introducing him to other employee with whom and under whom he has to work. TABLE: 3.2 TIME OF OFFICE WORKING DAYS TIME MONDAY TO FRIDAY 9:00 AM TO 5:30PM SATURDAY 9:00AM TO 2:00PM M&M SBU SATURDAY 9:00AM TO 5:30 PM 3.1.10 TRADE UNION Trade union is an association of employees designed primarily to maintain or improve the conditions of its members. TVS workers union is affiliated to INTUC. There is smooth and good relation between trade union and management.
  31. 31. 3.1.11 PROMOTION Promotion is a vertical move in rank and responsibility. Involved in a promotion may be some measures of skill, and responsibility. Promotion in TVS provided on the basis of performance and experience. 3.1.12 TRANSFER A Transfer is a horizontal or lateral movement of an employee from one job, section, department, shift, status, etc. In TVS transfer is provided on the basis of request from the employee. 3.1.13 PERFORMANCE APPRISAL A performance appraisal is a process of evaluating an employee’s performance of a job in terms of its requirements. In TVS performance is conducted on 4 point scale.  Outstanding  Good  Average  Below average 3.1.14 WELFARE ACTIVITES OF TVS Welfare activities mean the service, facilities and amenities provided to the employees to promote their wellbeing. Welfare section of TVS is concerned the following benefits. The organization provides various welfare measures to the employees. They are as follows 1. Supply of Helmet 2. Reimbursement of cost of spectacles 3. Supply of hearing aid 4. Supply of dentures 5. Reimbursement of confinement expenses 6. Family planning 7. Cycle advance 8. Salary advance 9. Education assistant scheme 10. Staff advance 11. Marriage present/Management gift
  32. 32. 12. Accident leave 13. Compassionate Allowance 14. Cash Awards 15. Service memento 16. Death relief fund The organization provides various motivation programmers like monetary incentives, best performance awards etc, and also provide some training as a safety measure like First-Aid Training, fire fighting training etc. 3.1. 15 INCENTIVES PROVIDEDBY THE ORGANISATION 1. Dearness Allowances 2. House Rent Allowances 3. Skill Allowances 4. Service Weightage 5. Night shift allowances 6. Reimbursement of conveyance expense 7. Cashier Allowance 8. Attendance incentive scheme 9. Special Ex-gratia 10. Washing Allowances 11. Technical Allowances 12. Posting and technical Allowance 13. Transfer Allowances 14. Privilege leave encashment 15. Medical Reimbursement 16. Uniform & Lunch Allowances 17. Special Allowances 18. Education Allowances 19. Entertainment allowances
  33. 33. 3.2 FINANCE DEPARTMENT TVS GROUP has a combined turnover of more than US$ billion. The TVS GROUP employs a total of around 25000. Charting a steady growth path of expansion and diversification, it currently comprises of 30 companies. These operate in diverse field that range from two wheeler and automotive dealership, finance and electronics. Uniting these multiple business is a common ethos of quality, customer service and social responsibility. In TVS the finance department is centralized. One executive controls the day to day financial activates of the organization. 3.2.1 FUNCTION 1. Analysis of financial position and performance 2. Financial control 3. Identification of financial sources 4. Internal audit 5. Credit administration 6. Payment collection of all departments 3.2.2 FINANCIAL TRANSACTION STRUCTURE Figure 3.1 FINANCIAL TRANSACTION STRUCTURE CFO TRANSACTION HEAD AR HEARGL HEAD NODAL IN CHARGE CASHIER
  34. 34. 3.2.3 DUTIES AND RESPONSIBILITIES The important duties and responsibilities of the finance department is maintaining the accounts of the organization, project management, taking cost control measures that can be done by the finance department. The other major duty is communicating the financial results to the stakeholders. The department is also responsible for the tax related matters. 3.2.4 ACCOUNTS TRANSACTION  Inflow (Receipt) - Amount Received from customer Mode of payment by Cash, CHQ,RTGS and NEFT(Advance payment , Cash Bill , Debit bill )  Outflow (Payment) – Amount paid to Vendor, Customer , Expenses Mode of Payment by Cash, CHQ , RTGS , NEFT(Vehicle Purchase , Parts purchase , Customer Refund, OSL and Expenses etc.). 3.2.5 SOURCES OF FUNDS (Source of funds) Where you'll get the money you plan to invest. Sources of funding include credit, venture capital, donations, grants, savings, subsidies, and taxes. 3.2.6 CAPITAL STRUCTURE In finance, capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. The company has its capitalization from as Public shareholdings (by both institutions and Non- institutions), promoters and promoter’s group shareholdings 3.2.7 BUDGETS Budget is an estimate of income and expenditure for a set period of time. Each department will have a separate budget for a year. Based on budgets each department a master budget is created for a year. In case of accounts department there will be separate budgets for sales, expenses etc.., it is been managed by the accounts department. Budgets are made flexible so that anything happens suddenly then the annual budget should not be affected. 3.2.8 AUDITORS 3.2.8.1 Statutory Auditors The Company, in terms of Section 139 (1) and (2) of the Act 2013, is required to appoint statutory auditors for a term of five consecutive years i.e., till the conclusion of sixth annual general meeting and ratify their appointment, during the period, in every annual general meeting by an ordinary resolution.
  35. 35. The period for which any firm has held office as auditor prior to the commencement of the Act 2013 will be taken into account for calculating the period of five consecutive years, as per the fourth proviso to Section 139(2) of the Act 2013 read with Rule 6(3) of the Companies(Audit and Auditors) Rules, 2014. M/s. V. Sankar Aiyar& Co., Chartered Accountants, Mumbai, who were earlier appointed as statutory auditors of the Company, at the annual general meeting held on 19th July 2013, are eligible to be appointed for the remaining period of four years out of the first term of five consecutive years in terms of the Act 2013. The Company has obtained necessary certificate under Section 141of the Act 2013 from the auditor conveying their eligibility for the above appointment. The audit committee and board reviewed their eligibility criteria, as laid down under Section 141 of the Act 2013 and recommended their appointment as auditors for the aforesaid period. 3.2.8.2 Secretarial Auditors As required under Section 204 of the Act 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014, the Company is required to appoint a Secretarial Auditor for auditing the secretarial and related records of the Company and to provide a report in this regard. Accordingly, M/s S Krishnamurthy & Co., Company Secretaries, Chennai have been appointed as Secretarial Auditors for carrying out the secretarial audit for the financial year 2014-15 for attaching their report with the Board's report to the shareholders. 3.2.9 DIVIDEND The board of directors (the board) at their meeting held on 25th October 2013, declared a first interim dividend of Re.0.65 per share (65%) for the year 2013-14 absorbing a sum of Rs.36.13 Cr including dividend distribution tax. The same was paid to the shareholders on 5th November 2013. The board at its meeting held on 29th April 2014 declared a second interim dividend of Re.0.75 per share (75%) for the year 2013-14 absorbing a sum of Rs.41.19 Cr including dividend distribution tax. The same will be paid to the shareholders on or after 9th May 2014. Hence, the total amount of dividend including the second interim dividend payable, for the year ended 31st March 2014 will aggregate to Rs.1.40 per share (140%) on 47,50,87,114 equity shares of Re.1/- each.
  36. 36. TABLE:3.3 FINANCIAL HIGHLIGHTS
  37. 37. 3.3 SALES DEPARTMENT The sales department mainly concentrates on the sales activities in the organization. The sales manager controls and formulates all the sales promotional and other activities related to sales in the organization. Each product have separate department for sales, AL DEPARTMENT, M&M DEPARTMENT, SPARE PARTS DEPARTMENT. 3.3.1 SALES PROCESS There are mainly three process:  Pre sales process  Sales  Post sales process All these functions are inter related and inter depended FIGURE : 3.2 PRE SALES PROCESS WALK IN INTERVIEW PRODUCT DEMONSTRATION TELEPHONIC ENQUIRY TEST DRIVE
  38. 38. FIGURE 3.3 CLASSIFACTION OF SALES PROCESS FROMPRE SALE PROCESS ENQUIRY TRACKING ORDER BOOKING FINANCEPROCESS DELIVER MANAGMENT DELIVERY EXPLANTATION DELIVERY CEREMONY VEHICLE DELIVERY TO POST SALESFOLLOW UP DELIVERY PROCESS PRE DELIVERY PROCESS
  39. 39. 3.3.2 TVS MOTOR COMPANYPOSTS 14%SALES GROWTHIN APRIL 2015 Hosur,02May 2015: TVS Motor Company recorded a 14% growth in sales for the month of April 2015 with total sales increasing from 171,897 units recorded in the month of April 2014 to 195,937 units in the month of April 2015. Exports The company's total exports grew by 18% with sales increasing from 27,493 units in the month of April 2014 to 32,426 units in April 2015. Two wheeler exports grew by 8% with sales increasing from 21,760 units in April 2014 to 23,525 units in April 2015. Two Wheeler Total two wheeler sales grew by 13% increasing from 165,194 units recorded in April 2014 to 186,041 units in April 2015. Domestic two wheeler sales grew by 13% increasing from 143,434 units in April 2014 to 162,516 units in April 2015. Scooters sales of the company grew by 15% increasing from 42,942 units in April 2014 to 49,375 units in April 2015. Motorcycles sales grew by 13% increasing from 66,460 units in the month of April 2014 to 74,953 units in April 2015. Three Wheeler Three wheeler sales of the company registered an increase of 48%, growing from 6,703 units in April 2014 to 9,896 units in April 2015. 3.3.3 SALES METHOD  Direct sales, involving person to person contact  Pro forma sales  Agency-based  Sales agents (for example in real estate or in manufacturing)  Sales outsourcing through direct branded representation  Transaction sales  Consultative sales
  40. 40.  Complex sales  Telemarketing or telesales  Retail or consumer  Traveling salesman  Door-to-door methods  hawking  Request for proposal – An invitation for suppliers, through a bidding process, to submit a proposal on a specific product or service. An RFP usually represents part of a complex sales process, also known as "enterprise sales".  Business-to-business – Business-to-business ("B2B") sales are much more relationship-based owing to the lack of emotional attachment[citation needed] to the products in question. Industrial/professional sales involves selling from one business to another  Electronic  Web – Business-to-business ("B2B") and business-to-consumer ("B2C")  Electronic Data Interchange (EDI) – A set of standard for structuring information to be electronically exchanged between and within businesses  Indirect, human-mediated but with indirect contact  Mail-order  vending machine  Sales Techniques:  Selling technique  Consultative selling  Sales enablement  Solution selling  Conceptual selling  Strategic selling  Transactional selling  Sales Negotiation  Reverse Selling  Upselling  Cross-selling  Paint-the-Picture  take away  Sales Habits  Relationship Selling  Sales outsourcing
  41. 41. 3.3.4 SALES AGENTS Agents in the sales process can represent either of two parties in the sales process; for example: 1. Sales broker, seller agency, seller agent, seller representative: This is a traditional role where the salesman represents a person or company on the selling end of a deal. 2. Buyers broker or Buyer brokerage: This is where the salesman represents the consumer making the purchase. This is most often applied in large transactions. 3. Disclosed dual agent: This is where the salesman represents both parties in the sale and acts as a mediator for the transaction. The role of the salesman here is to oversee that both parties receive an honest and fair deal, and is responsible to both. 4. Transaction broker: This is where the salesperson represents neither party but handles the transaction only. The seller owes no responsibility to either party getting a fair or honest deal, just that all of the papers are handled properly. 5. Sales outsourcing involves direct branded representation where the sales representatives are recruited, hired, and managed by an external entity but hold quotas, represent themselves as the brand of the client, and report all activities (through their own sales management channels) back to the client. It is akin to a virtual extension of a sales force (see sales outsourcing). 6. Sales managers aim to implement various sales strategies and management techniques in order to facilitate improved profits and increased sales volume. They are also responsible for coordinating the sales and marketing department as well as oversight concerning the fair and honest execution of the sales process by their agents. 7. Salesperson: The primary function of professional sales is to generate and close leads, educate prospects, fill needs and satisfy wants of consumers appropriately, and therefore turn prospective customers into actual ones. Questioning – to understand a customer's goal and requirements relevant to the product – and the creation of a valuable solution by communicating the necessary information that encourages a buyer to achieve their goal at an economic cost comprise the functions of the salesperson or of the sales engine (for example, the Internet, a vending machine, etc.). A good salesperson should never mis- sell or over-evaluate the customer's requirements.
  42. 42. 3.4 INFORMATION TECHNOLOGY/ NETWORKDEPARTMENT Businesses have used information technology for many years to automotive tasks-from automated book keeping to automated manufacturing. More recently, business have used computer-based information system to support the analysis, interpretation, and presentation of data in business decision making. E-business and E-commerce refers to all business transactions that depend on information technology. Today information technology is an inseparable part of every organization. So information system plays a vital role in TVS. This is used in all the departments in the organization like HR MANAGEMNT, FINANCIAL MANAGEMENT, and MANUFACTURING MANAGEMENT etc. The organization use both AXAPTA & UNIX system for controlling and coordinating of all systems in the organization. 3.4.1 SERVER CONNECTION OF TVS & SONS IN REGIONAL OFFICE: FIGURE : 3.4 SERVER CONNECTION OF TVS & SONS IN REGIONAL OFFICE 3.4.2 IMPORTANCE OF INFORMATIONTECHNOLOGY 1. It enables the coordination of activities of regional offices from the head office. 2. For the timely and correct decision making 3. For the efficient and safe documentation 4. To deploy the IT monitor power 5. For the correct documentation SUP1 SUP2 EKM TVM M SUP1 SUP2 MAIN SERVER MADURAI KNR KTM SUP1 SUP2 SUP1 SUP2
  43. 43. 3.4.3 NON ERP APPLICATIONS  ADRE HRMS & Pocket Payroll  TravelEx – Employee Claims Settlement  OPTIMA for – Central Procurement  SharePoint – Intranet (TVS World)  INSTIL – IT ticketing system  MS Reporting services:  MIS portal for Business.  Role MIS - Finance portal. 3.4.4 ERP SOLUTIONS Figure 3.5 ERP SOLUTIONS AX 2009 Modules  Finance (AR, AP,Fixed Assets,GL & Bank)  Dealership Management (DM)  Inventory Management (IM)  Material Requirement Planning (MRP)  Customer Relationship Management (CRM) AX 2009 – 327 Total Users from  M&M  MNAL  DSBU  CE&MH  AL-Lucas (Allied Services of ALSBU)  Finance
  44. 44. FIGURE : 3.6 IT STRUCTURE Balu Srinivasan Chief Information Officer S Venkatesan (Practice Head - HR, Ops.,Finance, CRM, SCMO and other Cop.Functions, T&N, ICS) Arvind Raj (Practice Manager - HR, Operations and SCMO) N Srinivasan (Practice Head - AL, M&M, RIPL, DSBU, UCAP, ACS, TWG, RSA) Nixon Durai (Practice Manager- DSBU and UCAP) Jegadeeswaran (Practice Manager - ACS, RSA, TWG and other ASL Ops.) Rajarathnam (Practice Manager - M&M and RIPL Sales and Service) S Kannan (Application Development Head) Kaniraja (AD Manager - ERP, Warehouse and Dashboard) Alaguraja (AD Manager - ADRE, Travelex, Optima and other Dot Net apps) Renganathan (AD Manager - ERP and Warehouse) Manjunath (IT Infrastructure Management Head) Vijay (ITI Manager -Data Center and Platforms) Shyam Prakash (ITI Manager - Networks) Chenchu (ITI Manager - End User devices and Telecom) S N Sasikumar (Service Delivery Head) T Preethi (Executive Assistant)
  45. 45. 3.5 ADMINISTRATION DEPARTMENT Administration department in TVS is concerned with maintaining all general activities like construction, repairs, building, maintenance, dispatch, printing and stationary, reception, security, cleaning, canteen arrangement, statutory complaints etc these activities are maintained and finally it is reported to the General Manager. 3.5.1 LEGAL, ADMINISTRATION AND PUBLIC RELATION OFFICER In TVS there is a Senior Legal Officer whose duty is to appear in all legal cases related to various SBU’s before ‘Consumer Court’. Some cases are settled out of court and give maximum satisfaction to be problematic customer all over Kerala. Another duty is to the preparation of agreement mainly based on the new located places for various SBU’s. Public relation duties such as arrangement of air and railway tickets for top executive, accommodation to the members and top officials, airport duty, management guests duty etc. 3.5.2 RECEPTION This section is concerned with attending telephone calls, connecting calls to various departments and directing visitors to the designated positions or departments. 3.5.3 CANTEENFACILITY Canteen is provided within the company premises, which is run on contract. Basic food is provided to all employees at a very subsidized rate. 3.5.4 SECURITY The security division of TVS is well managed. It controls the movement of men and vehicles. Separate gate passes are needed and it should be recorded in the register. They look into the arrival and departure of visitors and a separate register is kept for this purpose. 3.5.5 SAFETY Safety section facilities safe work environment to the employees. The company follows all company provisions for safety. Safety posters and slogans are exhibited inside the company especially in the workplace.
  46. 46. FIGURE : 3.7 STRUCTURE OF ADMINISTRATION DEPARTMENT SECURITY CLEANING SUERVISOR SUPERVISOR GENERAL MANAGER INFRASTRUCTURE SENIOR OFFICER ADMINISTRATION LEGAL OFFICER BRANCH ADMINISTRATION PERSONNEL DESPATCH TELEPHONE OPERATOR RECEPTION STAFFS STAFFS
  47. 47. 3.7 RESEARCHAND DEVELOPMENT The Company’s strong Research and Development (R&D) team is continuously working towards design and development of exciting new products for our customers. Aided by modern CAD / CAE resources and state-of-art facilities for engine and vehicle design, development and testing, Noise, Vibration and Harshness (NVH) measurements, R&D constantly develops new and innovative features. R&D team is also working on the development of fuel-efficient and environment friendly technologies. The Company also collaborates with leading research laboratories and educational institutions for developing future technologies. In 2013-14, the R&D team delivered a new Scooter ''TVS Jupiter'' with stunning style, class leading mileage and many first in class features. TVS Jupiter has become the ''Most Awarded'' scooter, recognized as class leading by all major auto magazines. Further, the R&D team has successfully delivered a motorcycle specifically tailored for African market. The R&D team has so far published 86 technical papers in national and international conferences. FIGURE: 3.8 FEEDBACK ON TECHNICAL ISSUES
  48. 48. 3.8 PRODUCTION DEPARTMENT Raw materials as well as parts and components arrive at the manufacturing plant by truck or rail, typically on a daily basis. As part of the just-in-time delivery system on which many plants are scheduled, the materials and parts are delivered at the place where they are used or installed. Manufacturing begins in the weld department with computer-controlled fabrication of the frame from high strength frame materials. Components are formed out of tubular metal and/or hollow metal shells fashioned from sheet metal. The various sections are welded together. This process involves manual, automatic, and robotic equipment. In the plastics department, small plastic resin pellets are melted and injected into molds under high pressure to form various plastic body trim parts. This process is known as injection molding. Plastic and metal parts and components are painted in booths in the paint department using a process known as powder-coating (this is the same process by which automobiles are painted). A powder-coating apparatus works like a large spray-painter, dispersing paint through a pressurized system evenly across the metal frame. Painted parts are sent via overhead conveyors or tow motor (similar to a ski lift tow rope) to the assembly department where they are installed on the frame of the motorcycle. Figure 3.9 A MOTORCYCLE ENGINE
  49. 49. 1. The engine is mounted in the painted frame, and various other components are fitted as the motorcycle is sent down the assembly line. 2. Wheels, brakes, wiring cables, foot pegs, exhaust pipes, seats, saddlebags, lights, radios, and hundreds of other parts are installed on the motorcycle frame. A Honda Gold Wing motorcycle, for example, needs almost as many parts to complete it as a Honda Civic automobile. 3.8.1 QUALITY CIRCLE At the end of the assembly line, quality control inspectors undertake a visual inspection of the motorcycle's painted finish and fit of parts. The quality control inspectors also feel the motorcycles with gloved hands to detect any bumps or defects in the finish. Each motorcycle is tested on a dynamometer. Inspectors accelerate the motorcycle from 0-60 mph. During the acceleration, the "dyno" tests for acceleration and braking, shifting, wheel alignment, headlight and taillight alignment and function, horn function, and exhaust emissions. The finished product must meet international standards for performance and safety. After the dyno test, a final inspection is made of the completed motorcycle. The motorcycles are boxed in crates and shipped to customers across North America and around the world. Motorcycles remain popular and the collecting and riding of antique models is just as popular as riding the new versions. While sleek, new versions will continue to be produces.
  50. 50. Figure 3.10 A MOTORCYCLE TRANSMISSION AND DISC BRAKE SYSTEM 3.8.2 JUST IN TIME (JIT) Just in time (JIT) is a production strategy that strives to improve a business' return on investment by reducing in-process inventory and associated carrying costs. This production model in which items are created to meet demand, not created in surplus or in advance of need. The company do not follow the Just In Time technique. The reason is because they have to maintain a minimum stock level always and unlike other automobiles, bicycle manufacturing cannot follow JIT. 3.8.3 PRODUCTION PLANNING AND CONTROL (PPC) The organization has a separate Production Planning and Control (PPC) department. They follow a daily based PPC. The department is responsible for scheduling the plants daily production and control. The PPC department is doing the Material Requirement Planning (MRP). 3.8.4 MAINTENANCE –TYPE The plant is using both preventive and predictive maintenance for the machines, tools and equipments in the plant. The preventive maintenance is done twice in one week and predictive maintenance is done periodically, that is once in 15 days .The employees who are doing maintenance is having 2o years of experience in the same field.
  51. 51. FIGURE: 3.11 PRODUCTION PROCESS 3.8.5 INVENTORY MANAGEMENT The company has got inventory management but it is a bit backward. As they stay behind in inventory management they are incurring high inventory cost. But now the company is focusing more on it. The organization has got an inventory of both raw materials that are the components waiting for phosphating, painting and finishing and the inventory of finished goods which are ready for shipment. 3.8.6 KAIZEN APPROACH Kaizen is small improvements and a change for better. It must be accompanied by change of method. The Kaizen concept stimulates productivity improvement as an ongoing process in any company. It is a practice oriented strategy which leads to creation of culture of improvement It is more a way of life or at least a cultural approach to quality improvement. The implementation of philosophy of Kaizen can be achieved through involvement of employees to effect improvements. The company is following the Kaizen approach. Kaizen is a system of continuous improvement in quality, technology, process, company culture, productivity, safety and leadership. In the organization all the employees from the top to bottom are allowed to put forward their suggestion in any aspect in the organization and their suggestions are encouraged and rewarded.
  52. 52. ANNEXURES 1.TVS Company Competition 2. TVS Share Holding – Top Public Shareholders Shareholding belonging to the category : "Public and holding more than 1% of the Total No. of Shares".
  53. 53. 3. List of Bulk Deals Bulk Deals on BSE on the: 01/07/2015 Major Bulk Deals Where Over 1% Of Equity Change
  54. 54. CHAPTER - V REFERENCES BOOKS DEBRA J. COHEN, ALEXANDER ALONSO, MONTRESE HAMILTON, DAVID S. GELLER-HUMAN RESOURCE MANAGEMENT, LAST MODIFIED: 28 JANUARY 2013 DRUCKER, P.E. 1974. MANAGEMENT: TASKS, RESPONSIBILITIES, PRACTICES. NEW YORK: HARPER AND ROW. PRODUCTION AND OPERATIONS MANAGEMENT, CHARY-TATA MCGRAW- HILL EDUCATION, 01-OCT-2004, EIGHTH RE-PRINT(2007)-NEW DELHI WEBSITES http://www.tvsmotor.com/default.aspx http://www.tvs.in https://en.wikipedia.org/wiki/TVS_Motor_Company https://www.careers.tvsmotor.co.in http://www.tvsgroup.com/pages/group.htm http://www.lucas-tvs.com/lucastvs/contactus.aspx https://www.scribd.com/doc/94203599/Tvs-and-Sons-Departments#

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