1. PRODUCTION PLANNING AND CONTROL IN
THE AUTO-ELECTRICAL INDUSTRY
A SUMMER INTERNSHIP REPORT
Submitted by
SUBHAM CHAUHAN
Registration No: 11504778
In partial fulfillment of Summer Internship for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION (HONS)
School of Business
LOVELY PROFESSIONAL UNIVERSITY
Phagwara, Punjab
July, 2016

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DECLARATION
I, Subham Chauhan, hereby declare that this internship project report entitled
Production planning and control has been completed based on actual study carried out
by me during my 45 days internship program at Lucas TVS Limited, Rudrapur.
I am presenting an authentic report of my work to School Of Business at Lovely
Professional University, Phagwara carried out at Lucas TVS Limited, Rudrapur for the
partial fulfilment of the requirement of the Master of Business Administration degree
programme of Lovely Professional University, Phagwara
This Study based report is original and information, data and fact furnished there in are
actual based on study carried out by me.
Signature
Subham Chauhan
11504778
Date- 31-07-2016

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ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any task
would be incomplete without the mention of the people made it possible and whose
guidance and encouragement.
The project is the part & parcel of M.B.A. Degree. It’s my great privilege to be
associated with Lucas TVS Limited - leaders in Automotive Filters and Auto-
Electrical Equipments. The kind of expression of Lucas TVS Limited. Global &
professional attitude is what, I desired before joining. I would like to take this
opportunity to thank all the people who helped in the completion my industrial training
& in the completion of this project.
I acknowledge my deepest thanks to Mr. D. D. Satyawali (Human Resource Head)
at Lucas TVS Limited, Rudrapur for all his care & encouraging words & giving
suggestions at the crucial stages of this project.
I deliberate my profound sense of gratitude of Mr. Sunit Kumar Chauhan
(Production Head), who have rendered constant guidance, advice and help as & when,
needed to complete this project work successfully.
I am thankful to Mrs. Neeru Sidana (Assistant Professor, School of Business) for her
exertions and persistent assistance during my internship at Lucas TVS.
I am deeply indebted to my dear parents, friends whose blessings and inspirations have
brought me up to this stage of my career.
Subham Chauhan

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EXECUTIVE SUMMARY
This report is mainly focused on production planning and control towards optimizing
the resources to enhance the productivity and effective labour utilisation and to
improve the quality for better customer satisfaction. In my summer training I have
targeted Alternator (SIA114) main assembly line in Lucas TVS Limited. Normally in
this internship important motive is to give information to the plant head of the
company and production manager. After giving information to the line in charge then
we ask some question for production planning and controlling purpose like what the
production losses and the quality problems in the assembly of alternator and from
where they tried to get the solutions and up to what extend they got their problem
troubleshooting in failure of production planning and corrective and preventive action
for the quality issues. Collection of data from the quality gate (Final Dispatch) and
pre-dispatch inspection used in this report is primary and secondary. Primary data of
this project is to explore awareness among the operators and supervisors about the data
of production losses and quality problems to discuss certain best practices towards
enhancing the productivity and effective labour utilization (ELU). Arising out of the
productivity loss and secondary objective of this project is, to aware the operators and
supervisor about the product quality towards customer satisfaction.
As per the study and feedback from the operators, they are not much aware about the
productivity losses and the customer dissatisfaction about the quality and delivery. But
after giving information to the operators and line in-charge they said it is very useful
for them and said whenever they get some problem regarding the productivity and the
quality or any loss in production they will definitely minimize the 4’M (Man, Machine,
Material & Method) losses and also many of the lines are facing the problems related
with the production and quality losses so there is large potential of the customer
dissatisfaction for Lucas TVS Limited.
As every other study, this study also has certain limitations. Some of the information
taken is secondary so the information taken can be wrong. The operators or supervisors
while providing the information may be bias.

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OBJECTIVE OF THE PROJECT
PRIMARY OBJECTIVE
 To study the Need and Management of Supply Chain Management of the
organization and the potential benefits of doing so.
 To identify the strategic, tactical, and operations issues in supply chain
management.
 To define the term inventory and list the major reasons for holding inventories and
list the main requirements for effective inventory management.
 To study the production planning and controlling process of Lucas TVS and the
techniques by which the former can enhance its productivity.
SECONDARY OBJECTIVE
 To gain real world experience of production and operations within the organization.
 To enhance the skills and gain experience of being a true professional.
 To understand the day to day functioning of a department within the organization.
 To deal with various problems of customer and their enquiry.
 To apply the various theoretical concepts in practical way within the organization.

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TABLE OF CONTENTS
S.No CONTENTS PAGE No.
1 Profile Study of Organization 13-19
Industry Analysis 14
Preliminary Understanding of the industry 15-16
Nature of demand and supply 16-19
2 History of Company 20-26
Origin 21-24
Expansion 24-25
Global Expansion 25-26
3 Introduction of the Company 27-42
About 28-30
Mission and Vision 30-31
Infrastructure 32
Life and Work Culture 33-35
Specialized Products Lucas TVS Offers 36-40
Customers of Lucas TVS 41-42
4 Organization Structure 43-48
Organization Hierarchy Under Plant 44
Organization Hierarchy Under Production 45
Awards and Recognitions 46

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Quality Policy 47-48
5 Learning From the Internship 49-67
Supply Chain Management 50-52
Production Planning 53-55
Production Scheduling 55-57
Production Monitoring 57-59
Quality Control 60-61
Pre-Dispatch Inspection 61-65
Inventory management 65-67
6 SWOT Analysis 68-74
Competitors Analysis 71-73
Conclusion 73-74
7 Customer Satisfaction Towards Lucas TVS
Limited.
75-80
Introduction 76
Need of the Study 76
Objective of the Study 76-77
Review of the literature 77-78
Research Methodology 79-80
8 Data Analysis and Interpretation 81-94
9 Findings and Recommendations 95-97
10 Conclusions 98-99

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11 References 100-101
12 Questionnaire 102-104
LIST OF TABLES
S.No TABLES PAGE No.
Table 3.1 Customers of Lucas TVS 42
Table 4.1 Awards and Recognitions 46
Table 5.1 Suppliers of Lucas TVS 52
Table 5.2 Cell log Sheet 54
Table 5.3 Day-Wise Breakdown 55
Table 5.4 Shift Breakdown 56
Table 5.5 Production Monitoring 63
Table 5.6 4M’s Reason 63
Table 5.7 4M’s Breakdown 64
Table 5.8 Kaizen Result Layout 65
Table 8.1 Variables Validity 82
Table 8.2 Order Validity 82
Table 8.3 Order Quantity Validity 83
Table 8.4 Order Delivery Validity 84
Table 8.5 Order Fulfilment Validity 85
Table 8.6 Package Rating Validity 86
Table 8.7 Defected Items Per Lot Validity 87

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Table 8.8 Problems in AEC Validity 88
Table 8.9 Problems in EFIP Validity 89
Table 8.10 Component Rating Validity 90
Table 8.11 KMO’s Test Significance 91
Table 8.12 Communalities Extraction 92
Table 8.13 Variance Explanation 92-93
Table 8.14 Component Matrix 93
Table 8.15 Rotated Component Matrix 93
LIST OF FIGURES
S.No FIGURES PAGE NO
Fig 1.1 Engine Electrical Components 14
Fig 2.1 Customers Welcome in Lucas TVS 23
Fig 3.1 The Founder of Lucas TVS 28
Fig 3.2 Certifications 29
Fig 3.3 Plant Outlook 33
Fig 3.4 Plant Interior Layout 33
Fig 3.5 Health & Safety Policy 34
Fig 3.6 Energy Policy 34
Fig 3.7 Norms and Ethics 35
Fig 3.8 Alternator 37
Fig 3.9 Location of Alternator in Engine 37
Fig 3.10 Starter Motor 38

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Fig 3.11 Location of Starter Motor in Engine 38
Fig 3.12 Wiper Motor 39
Fig 3.13 Location of Wiper Motor in Car 39
Fig 3.14 Types of Filters 39
Fig 3.15 Air Filter 39
Fig 3.16 Various types of Oil Filters 40
Fig 5.1 Label of Master Sample (OK) 56
Fig 5.2 Label of Master Sample (Not OK) 56
Fig 5.3 Finished Goods Inventory of Alternators 59
Fig 5.4 Production Line 59
Fig 5.5 Packaging Department 62
Fig 5.6 Consignment to Ware House 62
Fig 5.7 Tube-Offset Checking Before Kaizen 65
Fig 5.8 Tube-Offset Checking After Kaizen 65
Fig 5.9 FIFO Clock in Inventory 66
Fig 5.10 Raw Material Inventory 66
LIST OF GRAPHS
S.No GRAPHS PAGE No.
Graph 8.1 Order Validity
83
Graph 8.2 Order Quantity Validity
84
Graph 8.3 Order Delivery Validity
85
Graph 8.4 Order Fulfilment Validity
86

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Graph 8.5 Package Rating Validity
87
Graph 8.6 Defected Items Per Lot Validity
88
Graph 8.7 Problems in AEC Validity
89
Graph 8.8 Problems in EFIP Validity
90
Graph 8.9 Component Rating Validity
91
LIST OF FLOWCHARTS
S.No TABLES PAGE No.
Flowchart 3.1 Product Range 36
Flowchart 4.1 Organization Structure in Plant 44
Flowchart 4.2 Organization Structure in Production 45
Flowchart 5.1 Supply Chain Management 51
Flowchart 5.2 Function in PPC 53
Flowchart 5.3 Assembly Line 57
LIST OF ABBREVIATIONS
EEC Engine Electric Parts
AAC Automotive Aftermarket Companies
OEM Original Equipment Manufacture
ECP Electronic Control Parts

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AEC Auto-Electrical Components
EFIP Engine Fuel Injection Parts
CTW/CTC Consignment to Ware House/Centre
F/G Finished Goods
R/M Raw Material
WIP Work In Progress
SCM Supply Chain Management
SRE Spring Return Extend
DE Di-Polar Extend
PPC Production Planning and Control
R & D Research And Development
CNG Compressed Natural Gas
PADI Padi Plant of Lucas TVS in Chennai
CHKN Chakan Plant of Lucas TVS in Pune
UT Sidcul Plant of Lucas TVS in Uttarakhand
MMLN Maraimalainagar Plant of Lucas TVS in Chennai

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CHAPTER – 1
PROFILE STUDY OF ORGANIZATION

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1.1 INDUSTRY ANALYSIS
Lucas TVS Limited is into the business of Auto-Electrical components and Filter. This
is the part of automotive industry which comes under the AAC (Automotive
Aftermarket Component). Auto-Electrical are electrically operated systems which are
used in road Vehicles, originated from the need to control engines. There are some
electrical pieces which are used to control the functions of an engine and known as
Engine Electrical Components (EEC). The Electrical components controls is used in
various automotive applications and the acronym EEC stands for " Engine Electrical
Components", took on the more general meaning and as result specific EEC's are
produced. Now, EEC's are modular. A modern car may have up to 30 EEC’s and a
commercial vehicle up to 15. A filter is a porous device for removing impurities or solid
particles from a liquid or gas passed through it. Lucas-TVS is the market leader in India
for Auto Electrical equipment and has 50 years of experience in design and
manufacturing these products. Our product range includes Starter Motors, Alternators,
and Wiping systems, Ignition Systems, Fan Motors, Small Motors and Automotive
Filters. We are the principal supplier of these products to India's OEM's in the
automotive sector.
jj
Fig 1.1 – Engine Electrical Components
Source: Internet

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1.2 PRELIMINARY UNDERSTANDING OF THE INDUSTRY
Auto-Electrical components provider is relatively a very old business domain it comes
under automotive industry. The exponential growth of the automotive industry has led
to the growth of AEC provider. The industry mainly comprises of vendors who provide
Auto-Electrical components and Filters providers who develops the EECs which could
be sold to any automobile manufacturing company.
Lucas TVS limited provides both Auto-Electrical components and Filters to its clients.
In Indian market there aren’t any such companies that provide both Auto-Electrical
components and Filters to its customers hence it could be categorized as a monopoly.
But there some large number of vendors who provide different types of Auto-Electrical
components at a very small scale but they could never be categorized as a competitor
to Lucas TVS limited because of their scale of operation is very less mostly confined
to its locality.
In the automotive industry most of the automobile manufacturing company have
contracted with Auto-Electrical components provider. These type of providers are
considered as automotive aftermarket suppliers and known as the secondary market of
the automotive industry, these type of suppliers are perturbed with the distribution,
manufacturing, remanufacturing, installation and retailing of all vehicle parts, ECPs,
EECs and various accessories, even after the sale of that particular automobile
assembled with the former items, by the original equipment manufacturer (OEM) to the
customer. The parts and accessories for the sale may be or may not be manufactured by
the Latter. Hence, such types of companies are working in B2B as well as B2C lane.
There was a report submitted by the executives of the Administration of International
Trade in the Department of Commerce, "There should be two categories of AAC i.e.
accessories and replaceable parts. Accessories are parts made for comfort, performance,
convenience, safety, or customization, and are designed for add-on after the sale of that
motor vehicle from OEM, while the Latter are the parts either built or remanufactured
to replace OE parts as they could damage.

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“New analysis from Frost & Sullivan, Strategic Analysis of the Indian Automotive
Aftermarket finds that total manufacturer-level parts revenue in India will grow by a
CAGR of 12.4 percent (2014-2021) to reach $16.5 billion by 2021. Demand for routine
maintenance parts such as motor oil, wiper blades and brake pads will increase at least
10 times faster across India than in North America and Europe.”
1.3 NATURE OF DEMAND AND SUPPLY
There is a Chinese Saying, “Whenever the wind changes its blow, some people prefers
wall while others build the windmills”. And if you are engaged industry like (AAC)
automotive aftermarket sector, where you can feel a constant breeze of innovation, you
will have to develop an intuition for boundaries and opportunities, or in other words –
set up your windmill when the moment is right. The online retail market for the
automotive aftermarket parts industry and accessories continues to emerge as a
tremendous growth opportunity for the aftermarket parts industry. While estimated
sales volumes of the online parts industry vary, assessments range from $2 billion to $4
billion annually. In its March 2014 report, “Digital Disruption: e-Tailing in the
Automotive Aftermarket,” AASA reported that aftermarket e-tailing has grown
dramatically, with an estimated 60 percent of growth occurring in the past four years.
Because of that, Booz & Company estimated that by 2018, e-tailing market size could
reach 7.3 percent of market penetration. Aftermarket suppliers must have an effective
presence online in the purchase process to capitalize on the opportunities in DIY and
DIFM.
Over the last several years, the automotive aftermarket has adapted to and profited from
the overall trends in the automotive sector. Like the previous years, 2014 will again
mark a peak in the production of cars and the corresponding supplier industry. The high
demand for spare parts is connected to the old age of vehicles in the US (ca. 11 years).
Also, strong growth in emerging markets provides the automotive industry with a
significant amount of upward potential.
(https://www.frost.com/p7a0)

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From the aftermarket industry’s point of view, the continuity of this development
depends on the companies’ ability to further adapt to the upcoming automotive
aftermarket trends. The main driver behind these trends is technological change
1.3.1 Equalization of service levels in emerging markets
In the past, a service level of between 90 and 95 percent was the benchmark in the
automotive aftermarket. Today – partly as a consequence of higher requirements in the
digital age – a service level of 95 to 99 percent is the new standard in developed
markets. In emerging markets, like China or India, most of the time, the service level
does not climb higher than 80 percent. Increasing this value is the avowed goal of spare
parts management in the coming years. The most important challenge regarding this
matter is bridging the infrastructure gap in emerging markets. Even though ERP
systems are now widely available, the potential of these systems is limited. This fact
will promote further trends regarding inventory optimization strategies, in order to
achieve higher service levels.
1.3.2 E-commerce
E-commerce is a business model which has thrust itself into various business sectors.
Today, the transaction of relationships and sales processes between customers and
providers via the internet is the absolute standard in B2C business. This trend has now
affected spare parts management as well. In the US, the revenue in the online area of
spare parts vendors is estimated to amount to more than 5 billion dollars. In this specific
area, e-commerce shows a double-digit rate of increase – something the traditional
brick-and-mortar businesses can only dream of. But this shift comes with a price,
because the expectations of online customers are very high.
(BONUS: See our Special Report on "E-Commerce Reverse Logistics Framework
Strategy for The Automotive Aftermarket Industry" on the Automotive
Aftermarket Supplier's Association Website.)
Today, online mail-order advertises the concept of same-day-delivery, which implies
the arrival of goods only a few short hours after the order was made. In order to meet
these promises, a service level of 99 percent should be a standard. However, high stock

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levels cause high storage costs and bind capital which could be used in more sensible
ways. Companies should monitor both their service and stock levels and try to keep the
latter as low as possible. In this context, the balance of stock levels between the web
shop and the stationary retailers will play an important role in the future. The
coordination of these two poles, in terms of a multi-channel strategy, is one big
challenge the automotive aftermarket will face when implementing an e-commerce
business model.
1.3.3 3D printing
Aside from the demands of rigorous E-commerce delivery times, 3D printing also
represents a new trend in spare parts management. With 3D printing, companies found
a way to shift the production of spare parts from a central production facility to local,
previously non-productive subsidiaries. If a certain spare part is currently out of stock,
it can quickly be made available by printing it on-site. The most important thing about
this process is to have detailed specifications of the required objects. Because of its
complexity and data sensitivity, the procurement of this information is a massive
roadblock on the way to adopting this technology. While this currently prevents
widespread usage, the first companies, like Ford, are already moving in this direction.
One ongoing development of automotive aftermarket trends is suppliers are increasing
their ship-direct activity. They are shipping parts directly to the dealer, or they may ship
to a primary distribution center or field DC, bypassing the national distribution center.
This approach benefits the shipper during a surge in demand, because the inventory is
available throughout the network, so the supplier can quickly distribute it where it is
needed.
Another supply chain trend in the automotive aftermarket is same-day delivery.
Traditionally, dealers place their orders late in the afternoon on the day before delivery.
But today, suppliers place high-velocity parts in various select locations, allowing them
to ship to dealers in multiple daily deliveries. Dealerships can then provide much faster
service to their customers—repairs that once took two or three days, for example, can
now be completed within 24 hours. This strategy is prevalent in premium auto brands,
but is spreading to more mainline brands as well.

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Establishing high-velocity distribution centers represents a third auto aftermarket trend.
High-velocity DCs ship original equipment manufacturer (OEM) parts every day to
most or all of the automaker's dealerships. Some smaller auto brands ship less
frequently, typically delivering service parts two or three times weekly to the dealer.
Using high-velocity centers—either their own facilities, or ones operated by third
parties—allows companies that once delivered two or three times weekly to serve
customers five times per week. This approach could raise the level of inventory on
hand, but if companies strategically focus on turns and inventory placement, they may
not have to increase the amount of inventory in the system—they can just place it closer
to customers.
The Indian automotive component aftermarket industry is pegged at Rs 28,000 crore
and projected to touch Rs 37,000 crore by 2014-15. On the service side, the industry is
estimated at Rs 10,000 crore and projected to grow to Rs 13,000 crore by 2014-15. It is
such opportunities that are making big corporate houses like the Tatas and Reliance
strategise to grab a share of the pie. While the Tata Sons-promoted Tata AutoComp
Systems recently started offering a dozen-odd spare parts in the market a under a new
brand called ‘Autocomp’, Reliance Industries is stepping up its ‘Autozone’ business,
its maiden attempt in the auto retail business.

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CHAPTER – 2
HISTORY OF COMPANY

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2.1 ORIGIN
Lucas was established in 1872, the same year that the petrol engine was first patented.
The first Mercedes 'horseless carriage' was still 14 years away and the Ford Model T
wouldn't appear for a further 27 years. The business that Joseph Lucas founded in
Birmingham, still the global HQ of Lucas today, represents the consistency and
durability of Lucas products and has made Lucas one of the most successful automotive
brands in history. An official patent was obtained in 1880 for the "King of the Road"
bicycle lamp. In 1882, Joseph formed a private partnership with his son, Harry, trading
under the title of Joseph Lucas & Son. The "King of the Road" Lion became a trademark
in 1884 and remained a major feature of Lucas advertising for the next 80 years.
Business expanded dramatically in the bicycle boom of the time. A new factory was
built which later developed into the iconic Great King Street premises for the major and
successful Lucas Electrical business in Birmingham. By 1897 a public company,
Joseph Lucas Ltd, was formed with Joseph as Chairman. The company had now
achieved a leading position in its market and was perfectly positioned to move into the
infant automotive parts and accessories market.
Joseph Lucas died in 1902 to be succeeded by his son, Harry, as Chairman. Lucas was
perfectly positioned to take advantage of the expanding motor vehicle market which
was stimulated by a Parliamentary Act in 1903, which raised the speed limit above
walking pace, making the use of cars more attractive. The range extended to include
cycle, motorcycle and car accessories including oil, acetylene, and electric lamps. Great
King Street was expanded to meet increased demand.
By 1960 there were 57,000 employees and expansion across Europe was gaining
momentum. This included brake manufacturing in France and Germany, diesel
partnerships in France and Spain plus a significant development of the aftermarket
network. Lucas Service was by now a global enterprise. Lucas exported to over 130
markets with around 4,000 authorised outlets. Lucas began the 1970s as the 54th largest
company in the UK. The group was renamed as Lucas Industries in 1974 and a new
Lucas corporate identity, including the Lucas diagonal, was introduced in order to meet
changed national and international trading conditions. This resulted in the loss of the

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individual brands of Lucas (lion), Girling and CAV which had gained world-wide
recognition.
Lucas TVS was established in 1962 as Joint Venture between Lucas Plc. UK and TVS
Group, India. Lucas started operations in India from 1930 as Lucas Indian Service for
providing warranty and aftersales service to many of the imported vehicles which
carried Lucas parts. In the year 2001 Lucas TVS became a wholly owned company of
TVS Group, as Lucas the parent company ceased to exist worldwide. While this might
have created a technological challenge, Lucas TVS recognised this as an opportunity
and exploited successfully; today 75% of revenues are from products engineered and
developed locally by Lucas TVS. Lucas TVS is currently supplying to over 90% of
automotive manufacturers in India and also exporting to North America and Europe.
Initially with Starters, Dynamos and Distributor products, Lucas TVS, over the years,
commenced providing complete system solutions in Auto Electricals, specialized
motors for Air Compressors, Stop - Start systems, Engine Cooling modules, Ignition
products, Diesel Fuel Injection systems etc. Lucas TVS develops and integrates their
products in the vehicles and equipment, from the design stage onwards and carries out
application engineering, development, manufacturing and service. The company
developed innovative products, manufacturing systems and processes, which had
brought growth in business and this could result in Lucas TVS being one of the few
companies in the World to be awarded the Deming Application Prize and the Deming
Grand Prize, by Union of Japanese Scientists & Engineers and setting benchmarks in
the industry. Lucas TVS relies on investing in both people and infrastructure. Lucas
TVS has established R&D and Product Proving and Reliability testing facilities, which
have been recognised by the Government of India – Dept. of Science & Technology.
Lucas TVS products find applications in Two/Three Wheelers, Passenger Cars,
Commercial Vehicles, and Tractors & Stationery Engines. Through export partners,
Lucas TVS products are also integrated into some of the top global brands like Audi,
Mercedes-Benz, BMW, Porsche, Rolls Royce, etc.
While Starters and Alternators form the backbone of products, Lucas TVS established
new benchmarks, focusing on higher efficiency at lighter weight and costs, being the
present focus of automotive industry – e.g. the new SGM25 starter for 1.2L gasoline

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vehicles, high efficiency alternators (around 78% at lower speeds) to cater to the
increased power requirements of gadgets and gizmos used in the vehicles, 150A Bus
Alternator for the new luxury buses to run the air conditioners, on-board entertainment
and electronics and 180A bus alternators for battery less option. This contributes to the
Govt. of India ‘Make in India’ challenge.
Lucas TVS has developed Stop-Start Systems, Integral Starter Generators, Emission
Control products like Urea Pumps and Brushless Motor Technologies, to take care of
the growing need of environmental strategies of India.
Fig 2.1 – Customer’s red carpet welcome in the industry
Source: Internet
Lucas TVS has identified the need in the consumer industry, with synergy developed
by Lucas TVS over the years and is working with some of the leading consumer product
manufacturers in India to provide energy saving solutions using Brushless Motors and
Integrated Controls to meet the strict Energy Star Requirements of their products – e.g.
motors in refrigerators, air conditioners, air handling as well as basic high efficiency
home fans, pumping solutions, etc.

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Based on the capabilities and commitment to support the society, Lucas TVS has been
selected by the Government of India to partner with the prestigious Indian Institute of
Technology Madras in the next generation rural electrification pilot projects from the
infant stage itself. Looking into the future, Lucas TVS is able to fulfil the vision of
being a company that will be deeply involved in the field of auto electricals and
mechatronics as well as a significant player in consumer goods industry recognized for
quality, technology and energy savings worldwide.
2.2 EXPANSION
Since inception, Lucas-TVS has been focusing on meeting the needs of its customers
through a range of quality products. The company has been regularly coming up with
its new products for its OEM customers. This has contributed a lot to its success in the
domestic market, despite growing competition from multinationals. In order to meet the
mounting demand in developing countries like India for fuel-efficient vehicles which
are light in weight, with lower CO2 emissions, experts in Lucas-TVS continue
introducing new generation products with advanced technology. The company is
planning to expand its product portfolio by catering to CNG vehicles as well and is
working on developing CNG kits that offer complete solutions to customers.
Development of new products at the company is driven by its R&D team of highly
qualified engineers with years of experience and expertise in the field. Among some of
the new product developments, gear reduction starters have been well received in the
market, with the company planning to increase production capacity for the same in the
coming years. Lucas-TVS has developed a range of internal fan alternators with and
without vacuum pump for the passenger car, UV and CV segments. Amongst the new
technologies introduced by the company is the stop-start system while those under
development include the regenbraking and other electrical accessories such as electric
vacuum pump.
New Delhi: Auto component maker Lucas-TVS will invest up to Rs. 400 crore by next
two-three years in order to swell capability and product growth. It is also planning to
establish new constructing units in Indonesia and Thailand. Arvind Balaji, Lucas-TVS
Vice- President, said, “We will invest up to Rs. 400 crore over the next two-three years

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in R&D, manufacturing and capacity building.” Lucas-TVS already has seven operable
plants, comprising one in Iran, is also thinking over setting up new plants in Indonesia
and Thailand. Mr. Balaji told the company had commenced production in the Iran plant
through a joint venture with an investment of Rs 16 crore in which it holds the majority
stake. To spread out its existence, the company would launch its products in Germany
by next two years, besides anticipating inorganic growth chances. N. Ravichandran,
company President (Operations), “Lucas-TVS is looking out for domestic and
international acquisitions.”
However, Mr. Ravichandran declined to give details of the company’s acquisition plans
in future. On the domestic front, Lucas-TVS is about to frame-up a plant in Singur to
supply parts to Tata Motors for its Rs. 1 lakh car.
“We have acquired land in Singur for setting up a plant and will supply starters and
alternators to Tata Motors’ Rs. 1 lakh small car,” Mr. Ravichandran added. The
company that had revenue of $250 million in the last financial was looking to double
up the proceeds in the next four years.
2.3 GLOBAL EXPANSION
While new product innovations and overall quality policy have contributed to the
company’s sustained leadership in the domestic market, the current slowdown in the
automotive industry which has seen vehicle volumes plummeting to new lows has given
Lucas-TVS an opportunity to focus more on the aftermarket segment and also expand
its customer base in export markets. Says Executive Director, Lucas-TVS Pvt. Ltd.:
“Currently, our main focus is on the domestic aftermarket and exports where we see a
lot of potential for growth. We are aiming to increase our exports three-fold in the next
few years. In both the domestic and export markets, we remain committed to delivering
quality products through constant innovations and achieving high levels of customer
satisfaction, backed by excellent service.”
Today Lucas-TVS exports half-a-million compressor motors annually to WABCO’s
facility in Germany, with excellent PPM levels. WABCO supplies suspension parts
fitted with Lucas-Lucas TVSs to leading car manufacturers in Germany, including

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Mercedes, BMW and Audi. The company also supplies wiper motors to Commercial
Vehicle Group (USA), who supply the wiper system to truck OEMs in the North
American market. In the off-road segment, it serves all-terrain vehicle manufacturers
such as Artic cat and Polaris, among others.
In the domestic market, Lucas-TVS has a market share of nearly 45 per cent in the OEM
segment for products such as alternators, stop-start systems, brushless motors and wiper
motors. The company works with almost all leading OEMs in the country such as Tata
Motors, M&M, Daimler, Volvo, Ashok Leyland, VECV, MAN, Suzuki, Honda,
Hyundai, Renault and Cummins.
Lucas-TVS also caters to the huge two-wheeler market in the country. Nearly 70 per
cent of the two-wheelers come with an automatic start option which provides huge
opportunity for growth. The company supplies to leading two-wheeler makers in India
and is keen to enter the promising Indonesian market as well. It also supplies to tractor
manufacturers in the country, making it a truly full-range supplier in the automotive
space.
Lucas-TVS has been committed to its customers by following them geographically,
leading to better logistics efficiency. The company currently has seven manufacturing
units across the country – two each in Chennai and Puducherry and one each in Rewari
(Haryana), Chakan (Pune) and Uttarkand – thus having its presence in the major vehicle
manufacturing hubs in India. It has a sales and service network of around 800 dealers
and 2,000 sales outlets, one of the largest in the country.
The company clocked a turnover of Rs. 1,650 crores in FY13, of which Rs. 150 crores
came from exports, Rs. 200 crores from the domestic aftermarket and the rest from the
domestic OEM market. Nearly one half of sales is accounted for by the passenger car
and utility vehicle segments, with CVs and tractors contributing 20 per cent each and
two-wheelers the balance 10 per cent.
At Lucas-TVS, quality is not just conformance to drawings or specifications but
optimum customer satisfaction. The company has bagged a number of awards,
including the prestigious Deming Grand Prize and the Export Excellence Award, in
addition to several quality circle awards presented by its esteemed customers.

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CHAPTER – 3
INTRODUCTION OF THE COMPANY

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3.1 ABOUT
TVS Group is an Indian diversified industrial conglomerate with its principal
headquarters located in Madurai and presence across the Globe. Almost all holdings of
the group are private. The largest and most visible subsidiary is Lucas TVSs, 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, dealership business, brakes, wheels, tyres, axles, seating
systems, fuel injection components, electronic and electrical components and many
more.
The founder
Fig 3.1 – Trichur Vangram Sundaram Iyengar
Source: www.lucas.com
The TVS Group traces its origins to a rural transport service, founded in 1911 in Tamil
Nadu, India. Today, this renowned business conglomerate remains faithful to its core
ideals of trust, values, service and ethics. The TVS Group is India’s leading supplier of
automotive components and one of the country’s most respected business groups with
a combined turnover of more than over $ 6.5 Billion, the TVS Group employs a total
workforce of close to over 39,000 employees. Charting a steady growth path of
expansion and diversification, it currently comprises around over 50 companies. These
operate in diverse fields that range from two-wheeler and automotive
component manufacturing to automotive dealerships, finance and electronics.
Uniting these multiple businesses is a common ethos of quality, customer
service and social responsibility.

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3.1.1 Lucas TVS Limited
Lucas TVS was established in 1962 as a joint venture between Lucas UK and T V
Sundaram Iyengar & Sons (TVS), India to manufacture Automotive Electrical Systems.
Lucas TVS, a wholly owned Indian company from 2001 onwards, is the Leader in Auto
Electricals in India, with over 50 years’ experience in design, manufacturing and supply
of products to OEMs in India and abroad. Lucas TVS is certified for compliance of
their Quality management system to ISO/TS16949 and the organization’s management
system to ISO 50001, ISO 14001 and BS OHSAS 18001:2007.
Fig 3.2 – Certifications (Source: www.lucas-tvs.com)

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The company today has 7 Auto Electrical plants across the country and Lucas TVS is
the only AEC that has a Class-100 Clean Room facility to ensure the quality of the EECs
and ECPs. Lucas TVS has established itself as a market leader with an experience of
over a decade.
Stellar has more than 1,00,000 satisfied customers and more than 300 OEM Customers
across 150+ countries including USA, UK, Germany, Spain, Italy, France, Australia,
U.A.E, Japan. They have reinforced their faith in Lucas TVS offerings. Lucas TVS has
a widespread partner network around the globe, which ensures comprehensive pre-sales
and post-sales support to its customers. Lucas TVS is also providing E-Tailing Services
to its customers.
• The brand Lucas TVS denotes Success, Perfection and Trust. It transcends
international borders and only Company in Indian Sub-continent having CLASS-100
Clean Room
• Extensive Research & Development, Use of Proprietary Tools
• Presence in PADI-Chennai, Maraimalainagar, Nettapakkam, Thiruvander koli,
SIDCUL-Rudrapur, Rewari, CHAKAN-Pune
3.2 Mission and Vision
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.
Vision Statement
Lucas TVS will be responsive to customer requirements consonant with its core
competence and profitability. Lucas TVS will provide total customer satisfaction by
giving the customer the right product, at the right price, at the right time.

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The Industry Leader
Lucas TVS will be one among the top two two-wheeler manufacturers in India and one
among the top five two-wheeler manufacturers in Asia.
Global overview
Lucas TVS 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.
At the cutting edge
Lucas TVS will hone and sustain its cutting edge of technology by constant
benchmarking against international leaders.
Committed to Total Quality
Lucas TVS is committed to achieving a self-reviewing organization in perpetuity by
adopting TQM as a way of life. Lucas TVS believes in the importance of the process.
People and projects will be evaluated both by their end results and the process adopted.
The Human Factor
Lucas TVS believes that people make an organization and that its well-being is
dependent on the commitment and growth of its people. There will be a sustained effort
through systematic training and planning career growth to develop employees’ talents
and enhance job satisfaction. Lucas TVS will create an enabling ambience where the
maximum self-actualisation of every employee is achieved. Lucas TVS will support and
encourage the process of self-renewal in all its employees and nurture their sense of self-
worth.
Responsible Corporate Citizen
Lucas TVS 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. Lucas TVS strives for long-term
relationships of mutual trust and interdependence with its customers, employees, dealers
and suppliers.

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3.3 INFRASTRUCTURE
Since, 1962 Lucas TVS has been pioneer in developing its infrastructure in order to
benefit its clients. To match world standards Stellar has installed & commissioned
India’s first CLASS 100 Clean Room in all of its Ayton Electrical plant, it’s a controlled
recommended environment for all Read/write Head assembly transplants. For efficient
operations Lucas TVS maintains a strong inventory of more than 15000 child parts &
2500 EEC parts forming a wide range comprising of various makes, models &
capacities. Lucas TVS keeps on upgrading its inventory on a regular basis and also has
necessary infrastructure for repair capabilities OEM products.
At Lucas TVS, all of their EECs and EFIPs tools are indigenously developed &
supported by their strong R&D wing thus providing an edge over vendors engaged in
un-organized automotive industry. All of the tools used in Lucas TVS are backed-up by
constant research and upgrades.
Lucas TVS understands that apart from the technical capabilities it is equally important
to make the service window available in customer's location. At present Lucas TVS has
offered its services in 16 Strategic Locations (Ahmedabad, Bangalore, Chandigarh,
Chennai, Delhi, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida, Pune and Vashi). Lucas
TVS also offer its services by allowing its customers to send media through courier.
The major capabilities of Stellar Data Recovery can be summarized as
 Service location
 Class-100 Clean Room
 E-tailing
 Safety Policies
 Repair Equipment
 Distribution Process
 Poka-Yoke Involvement

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Fig 3.3 – Plant Outlook
Source: Lucas TVS
Fig 3.4 – Plant interior layout
Source: Lucas TVS
3.4 Work and Life Culture
In Lucas TVS Limited, Human Resource policies facilitate each individual to perform
towards own and Company's growth and success
Work Culture: Lucas TVS has always endeavoured to create a work-culture which is
open, positive and rewarding; where there are exciting growth opportunities for every
deserving Employee of Lucas TVS Family. Everyone is encouraged to learn new skills
on the job as well as through formal training programs. In Lucas TVS Recovery success
is not confined not only in monetary profits but also covering quality of products,
excellence of operations, growth, customer goodwill and leadership in business. Such a
success not only brings in a feeling of belongingness but also gives self-satisfaction.
Employee Motivation: Lucas TVS has invested heavily in progressive HR practices.
The company makes it a point to organize get together and Motivational events such as
Outbound Trip. These are an integral part of work culture in Lucas TVS. Also the
company does provide Infrastructure Support for conducive work environment.
Health: Employees and their dependents are covered under company paid health and
accident insurance schemes. These schemes also provide tie-ups with more than 200
hospitals across the country, thus ensuring quicker accessibility, discounts and easy-pay
option plans with guaranteed admission.

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Trainings: Several Training Programs are being conducted in Lucas TVS to ensure
better work performance and overall Personality Development. Structured workshops
are conducted once in a while,
 Time Management
 Communicating Effectively
 Team Management
 Customer Orientation
 Project Management
 Emotional Quotient
Autonomy & Empowerment: Lucas TVS encourage people to work with autonomy,
to challenge old ideas, to develop themselves & their Job, to question old ways, thus
move beyond their job description. Lucas TVS provides its employees with an
atmosphere where they can develop themselves & others to move towards jobs that
requires greater involvement. At the same time each individual is allowed to assume
responsibility of their personal growth.
Fig 3.5 – Health and Safety Policy
Source: Lucas TVS
Fig 3.6 – Energy Policy
Source: Lucas TVS

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Team Work: Individual technical skills and competence are essential but people also
need to learn to work as a team in-groups. Lucas TVS firmly believes that the primary
job of a leader is to facilitate rather than control. The team that produces the best result
is the one where the Leader actively supports its members in their performance. Lucas
TVS encourages teamwork between the employees in the organization. Hence, great
emphasis is given to the various Team Building Programs and the employees are
exposed to learn these skills through modern professional help.
Planned Career Path: Well-planned Career Charts for all the Employees in each
department which tells an employee where his/her career would reach in the
Organization.
Fig 3.7 – Norms and Ethics to be followed in the plant
Source: Lucas TVS
 In the plant all the employees have to follow a dress code along with ankle boots
and that should be in proper way.
 In the plant none of the employee is allowed to bring the mobile inside the working
zone, Smoking, running, mis-placing is not allowed in the working zone.
 If someone is coming by a motorbike than he/she should have a helmet other wise
the gaurds will not give the permission to go inside the plant.

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3.5 Specialised Products of Lucas TVS
Product chart
Auto electrical
Wiper
Face lift wiper
(tml)
Microbus
rhd(tml)
Microbus
lhd(tml)
Bolero wiper (m
&m)
Ngc/ngicv
(ashok leyland)
Sumo gold
wiper(tml)
Penguin
wiper(tml)
Starter
Sm82 (tml)
Dicor(tml)
Penguin(tml)
9m14 (ashok
leyland)
6m14 (ptl & itl)
Alternator
Tata ace 3ha15 (tml)
Dicore alternator
(tml)
Penguin
alternator( tml)
Zener alternator
(tml)
Iris bs4
Sa 28(ashok
leyland)
A115(itl & ptl)
Filter
Air filter Oil filter
Fuel filter
Flowchart 3.1: Product Range

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3.5.1 Alternator
An alternator is an electrical generator that converts mechanical energy to electrical
energy in the form of alternating current. For reasons of cost and simplicity, most
alternators use a rotating magnetic field with a stationary armature. Occasionally, a
linear alternator or a rotating armature with a stationary magnetic field is used. In
principle, any AC electrical generator can be called an alternator, but usually the term
refers to small rotating machines driven by automotive and other internal combustion
engines. Alternators are used in modern automobiles to charge the battery and to
power the electrical system when its engine is running.
Until the 1960s, automobiles used DC dynamo generators with commutators. With the
availability of affordable silicon diode rectifiers, alternators were used instead. This
was encouraged by the increasing electrical power required for cars in this period, with
increasing loads from larger headlamps, electric wipers, heated rear windows and other
accessories.
Fig: 3.8 Alternator
Source: Lucas TVS
Fig: 3.9 Location of Alternator in Engine
Source: Lucas TVS
3.5.2 Starter Motor
A starter (also self-starter, self, or starter motor) is an electric motor, pneumatic
motor, hydraulic motor, an internal-combustion engine in case of very large engines or
other device used for rotating an internal-combustion engine so as to initiate the engine's
operation under its own power.

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Engines are feedback systems which once started, rely on the inertia from each cycle to
initiate the next cycle. In a four-stroke engine, the third stroke releases energy from the
fuel, powering the fourth (exhaust) stroke and also the first two (intake, compression)
strokes of the next cycle, as well as powering the engine's external load. To start the
first cycle of engine's run session, the first two strokes must be powered in some other
way. The starter motor is used for this purpose and is not required once the system starts
running.
Before the advent of the starter motor, engines were started by various methods
including wind-up springs, gunpowder cylinders, and human-powered techniques such
as a removable crank handle which engaged the front of the crankshaft, pulling on an
airplane propeller, or pulling a cord that was wound around an open-face pulley.
Fig: 3.10 Starter Motor
Source: Lucas TVS
Fig: 3.11 Location of Starter Motor in Engine
Source: Lucas TVS
3.5.3 Wiper and Wiper Motor
A windscreen wiper or windshield wiper is a device used to remove rain, snow, ice
and debris from a windscreen or windshield. Almost all motor vehicles, including cars,
trucks, train locomotives, watercraft with a cabin and some aircraft, are equipped with
such wipers, which are usually a legal requirement.
A wiper generally consists of a metal arm, pivoting at one end and with a long rubber
blade attached to the other. The arm is powered by a motor, often an electric motor,
although pneumatic power is also used in some vehicles. The blade is swung back and
forth over the glass, pushing water or other precipitation from its surface. The speed is

39. 39 | P a g e
normally adjustable, with several continuous speeds and often one or more
"intermittent" settings. Most automobiles use two synchronized radial type arms, while
many commercial vehicles use one or more pantograph arms.
The mechanism behind wipers is the windshield wiper motor, which provides the power
the wipers need. A linkage converts the rotational output of the windshield wiper motor
into the back-and-forth motion of the wipers. A worm gear controls the force that the
windshield wiper motor delivers to the drive arm by slowing down the speed of the
electric motor by 50 times while multiplying the torque by 50 times.
Fig: 3.12 Wiper Motor
Source: Lucas TVS
Fig: 3.13 Location of Wiper Motor in Engine
Source: Lucas TVS
3.5.4 Filter
A particulate air filter is a device composed of fibrous materials which removes solid
particulates such as dust, pollen, mould, and bacteria from the air. A chemical air filter
consists of an absorbent or catalyst for the removal of airborne molecular contaminants
such as volatile organic compounds or ozone. Air filters are used in applications where
air quality is important, notably in building ventilation systems and in engines.
Fig: 3.14 Types of Filters
Source: Lucas TVS
Fig: 3.15 Air Filter
Source: Lucas TVS

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An oil filter is a filter designed to remove contaminants from engine oil, transmission
oil, lubricating oil, or hydraulic oil. Oil filters are used in many different types of
hydraulic machinery. A chief use of the oil filter is in internal-combustion engines in
on- and off-road motor vehicles, light aircraft, and various naval vessels.
A fuel filter is a filter in the fuel line that screens out dirt and dust particles from the
fuel, normally made into cartridges containing a filter paper. They are found in most
engines. Fuel filters serve a vital function in today's modern, tight-tolerance engine fuel
systems. Unfiltered fuel may contain several kinds of contamination, for example paint
chips and dirt that has been knocked into the tank while filling, or rust caused by
moisture in a steel tank. If these substances are not removed before the fuel enters the
system, they will cause rapid wear and failure of the fuel pump and injectors, due to the
abrasive action of the particles on the high-precision components used in modern
injection systems. Fuel filters also improve performance, as the fewer contaminants
present in the fuel, the more efficiently it can be burnt.
Fig: 3.16 Various types of
Oil filters and Fuel Filters
Source: Lucas TVS

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3.6 Specialised Customers of Lucas TVS
CUSTOMERS PRODUCT SUPPLIER
Wipers & Wiper
Motors
Filters
Alternators
PADI
UT
Alternators
Starter Motors
UT
Alternators
Starter Motors
Filters
PADI
Alternators
Starter Motors
CHKN
Alternators
Starter Motors
Filters
MMLN
Alternators
Starter Motors
Wiper & Wiper
Motors
PADI
Alternators
Starter Motors
CHKN
Alternators
Starter Motors
UT
Alternators
Starter Motors
Filters
UT
PADI

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Alternators
Starter Motors
Filters
MMLN
Alternators
Starter Motors
Wiper & wiper Motors
CHKN
Starter Motors
Wiper & wiper Motors
Filters
PADI
MMLN
Alternators
Starter Motors
Filters
UT
CHKN
Starter Motors
Wiper & wiper Motors
Filters
UT
PADI
Starter Motors
Alternators
PADI
Starter Motors
Alternators
CHKN
Starter Motors
Alternators
PADI
Table 3.1: Customers of Lucas TVS

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CHAPTER – 4
ORGANIZATION STRUCTURE

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4.1 Organization Structure under the Plant
Flowchart 4.1: Organization Structure under the plant
The plant is headed by Mr. K. Parthsarthy and the types of organisation structure used
by Lucas TVS that face considerable environmental uncertainty that can be met through
a divisional structure and that also required functional expertise or efficiency.
This type of structure is used by multinational companies operating in the global
environment, for example, International Business Machines USA. This kind of
structure depends on factors such as degree of international orientation and
commitment. Multinational corporations may have their corporate offices in the
country of origin and their international divisions established in various countries
reporting to the CEO or president at the headquarters.
Plant head
K Parthsarthy
HR Head
D D Satyawali
Marketing head
Badri Prasad
Production Head
(Filter) Rahul Bhatt
Production Head (Auto
Elcetrical) Sunit Kumar
Chauhan
Methods and MSE
jagdish rao
Maintenance
I S Patwal
Store head
Ravikant sharma
Quality Assurance
Ajay Kumar Sharma
Material head
Rajesh saini

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While the focus is on international geographic structures, companies may also choose
functional or process or product departmentation in addition to geographic pattern while
at the head quarter’s the departmentation may be based on function.
4.2 Organization Structure under the Production Department
Flowchart 4.2: Organization Structure under the production Department
This the production department hierarchy followed by the Lucas TVS the production
Department is headed by Mr. Sunit Kumar Chauhan and the PPC Manager Mr. Sumanta
Das is the 2nd
in Command. All the Four line Engineers of respective AEC component
works under him and all the line engineers heading their respective production line each
and every line has line operators having a team of employees more than 15. The
reporting criteria is direct and very hierarchical but for any other queries the employees
can go directly to the Production head.
Production Head
Auto Electrical
Sunit Kumar Chauhan
PPC
Sumanta Das
Wiper
Rajeev Ranjan
Anupam Shukla
Starter
Komal Singh
Aftab Alam
Ansari
Jagdish Pandey
After Market
Kundan Negi
Jyoti Vist
(Field Coil)
Alternator
Vikas Raghav
Bhaskar Joshi
Hem Pathak
Dhirendra Bhatt

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4.3 Awards and Recognitions
International Recognition
Awards Institutions
Deming Grand Prize JUSE
Deming Application Prize JUSE
Excellence in Quality promotion
(ARE – QP)
Asian Network for Quality
JIT Innovation Award JIT Management Lab, Tokyo
JIT Grand Prix Award (3 times) JIT Management Lab, Tokyo
National Recognition
Awards Institutions
 Excellence in Export Award
 Technology Award
 Gold Trophy for
manufacturing
 Productivity Award
Automotive Component
Manufacturers Association of India
(ACMA)
Green Manufacturing Excellence
Award
Frost & Sullivan
Energy Conservation Award Government of India
Rajiv Gandhi National Quality
Award
Government of India
National HR Excellence Award
(Strong commitment to HR
Excellence)
Confederation of Indian Industry
(CII)
Certification of appreciation for Tax
compliance
Government of India
Export Excellence award Government of India
Table 4.1: Awards and recognitions

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4.3 Quality policy
We are committed to achieving ever increasing levels of satisfaction through continual
improvements to the quality of our products and services by continually improving the
effectiveness of quality management system.
It will be our endeavour to increase customer trust and confidence in the label “Made
by Lucas – TVS”
Objectives –
 Achieving OE Customer Line Rejection less than 10PPM
 Continual reduction of warranty returns
 Providing warranty services to customers within 24 Hrs of receiving the
complaint
 Delivering products to customers in right quantity on time, every time
Principles –
 Quality begins with a comprehensive understanding of changing customer
needs
 Quality means providing value to customer in the use of our products and
services
 Quality is built into the design of products, processes and materials
 Quality improvements lead to productivity and cost improvements
 Quality means preventing defects and not detecting them only after occurrence
 Quality demands commitment by all employees, suppliers and dealers
 Quality is achieved through total employee involvement and training
 Quality cycle begins again with a comprehensive understanding of customer
satisfaction levels
Practices –
 Practices quality individually and as team
 Do “right first time” on time and every time
 Enhance employee performance through training, motivation and small group
activities

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 Understand and increasing customer needs and expectations and satisfy them
 Eliminate activities which do not add value
 Standardise processes and systems with SOP and practice
 Implement Systematic supplier/dealer development Programmes for improved
quality
 Practice continual improvement as a way of life in all activities
 Next process is your customer, satisfy him
 Apply statistical tools extensively across the organization
Revision: 02
Date: 26.08.2009 MANAGING DIRECTOR

49. 49 | P a g e
CHAPTER – 5
LEARNING FROM THE INTERNSHIP

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5.1Supply Chain Management
Supply Chain Management is the sequence of the organizations their facilities,
functions, and activities - that are involved in producing and delivering a product or
service. Unlike the others manufacture companies Lucas TVS is also having a typical
manufacturing SCM.
The supply chain of the Lucas TVS consists of all parties involved, directly or
indirectly, in fulfilling a customer request, supply chain not only includes the
manufacturer and suppliers, but also transporters, warehouses, retailers, and customers
themselves. Within each organization, such as manufacturer, the supply chain includes
all functions involved in receiving and filling a customer request. These functions
include, but are not limited to, new product development, marketing, operations,
distribution, finance, and customer service.
Such type of supply chain is dynamic and involves the constant flow of information,
product, and funds between different stages. Hence, Lucas TVS provides the product,
as well as pricing and availability information, to the customer. The customer transfers
funds to Lucas TVS and the Company conveys point-of-sales data as well as
replenishment order via trucks back to the store Lucas TVS transfers funds to the
distributor after the replenishment. The distributer also provides pricing information
and sends delivery schedules to Lucas TVS. Similar information, material, and fund
flows take place across the entire supply chain. That process involves an additional flow
of information, product, and funds between various stages of the supply chain.
This illustrate that the customer is an integral part of the supply chain in Lucas TVS.
The primary purpose from the existence of the supply chain is to satisfy customer needs,
in the process generating profits for itself. In Lucas TVS the supply chain activities
begin with a customer order and end when a satisfied customer has paid for his or her
purchase. In the organization, the term supply chain conjures up images of product or
supply moving from suppliers to manufacturers to distributors to retailers to customers
along a chain. It is important to visualize information, funds, and product flows along
both directions of this chain. Supply chain in Lucas TVS also imply that only one player
is involved at each stage. In reality Lucas TVS may receive material from several
suppliers and then supply several distributors. Thus, the supply chain is actually

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networks. It may be more accurate to use the term supply network or supply web to
describe the structure of most supply chains.
A typical supply chain may involve a variety of stages. These supply chain stages
include:
• Customers
• Retailers
• Wholesalers/Distributors
• Manufacturers
• Component/Raw material suppliers
Flowchart 5.1: Supply chain management of Lucas TVS
The above chart is the supply chain structure of the Lucas TVS. According to this chain
there are three main activities are carried out i.e. purchasing which involves purchasing
raw materials from the Suppliers after that production process in which the raw material
is stored in the stores followed by scheduled production than the Finished goods are
sent to F/G Stores, than the distribution process, Lucas TVS is a B2B as well as B2C
Supplier
Storage
Manufacture
Storage
Distributor
Reatailer
Customer
OEM
Customer

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company so the company directly sent the F/G to the OEM Customers and to the
distributor transfers it the retailers and hence to the customers.
Supplier of the Lucas TVS
SUPPLIERS PARTS
PN DIE CASTING PVT LTD PROTECTIVE DISC
POLE SCREW
LUCAS-TVS LTD ( PADI DIVN ) INSUL BUSH
SEALING RING
SOLENOID FIXING STUD
WIPING SYSTEM ASSY
VENUS STAMPINGS PVT LTD SLIP RING MOULDING
WINDING COIL
KARNATAKA HYBRID MICRO
DEVICES LTD
RETAINER PLATE
PRIMARY LINK & SPINDLE AS
LIFELONG INDIA LTD BALL BEARING
BEARING BUSH
SKF INDIA LIMITED BALL BEARING SRE
TANDOM LINK & SPINDLE ASS
SPINDLE ASSY (DRIVER)
NISIKI INDIA PRIVATE LIMITED RETAINER PLATE
OSCILLATING LINK-MIDDLE
PRECISION PRESS PRODUCTS SLIP RING MOULDING
PRESSED CLAW - SA28
ASYMMETRIC FAN
RECTIFIER ASSEMBLY
LOCKING COVER
SSV HI-TECH RUDRAPUR P LTD 15TR REGULATOR ASSY
STATOR CORE
SRE BEARING
KAMBOJ POLYMERS PVT LTD SPONGE
SEMI-PERMEABLE PAPER
CREPE PAPER
Table 5.1: Suppliers of Lucas TVS

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Functions of Supply Chain Management
5.1.1 Production Planning
Production planning is done based on the demand supply trend in the market. The main
concept adopted is supply chain management. Supply Chain Management is the
management of upstream and downstream relationships between suppliers and
customers to deliver the best value to the customer at the least cost to the demand chain
as a whole. Supply chain management software tools bridge the gap between the
customer relationship management and the demand chain management. The
organization’s supply chain processes are managed to deliver best value according to
the demand of the customers. One of the factors that affects the production process is
the seasonality in business. Some sectors (not the end users) have a seasonality in
business which in turn is in direct co relation with the raw material production and
demand.
Flowchart 5.2: Function In Production Planning and control
Customer
Marketing
Team
• Production
Planning
PPC
Departmrnt
HR
Department
• Production Scheduling
PPC
Department
Production
Department
• Production
Control
Production
Process
Loss
Identification
• Production
Monitoring

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Thus, seasonality plays a vital role in the production process. Product development and
management is an aspect of the inorganic sales function of the organisation. It mainly
focuses on the development of newer applications of the existing products and to use
the raw material of polymer in newer environment friendly application to open up new
horizons. It deals with the planning of the efficient use of plastic as a product due to
constant opposition from government and other environmental organisations.
In July month the company’s marketing team received an order of 7,500 alternators
from TATA Motors, than the marketing team designed an outlaw of the orders and
transferred it to the PPC (production Planning and Control) Department. PPC, checked
the CTW if there were some alternator available or not. There were no alternator in the
CTW stock than the PPC department finalised the order for 7500 alternators and handed
over it to the Department there, the HR officer decided the advance payment and Post
payment. After that the Hr department allotted the man power requirement for the order
as per the time period mentioned by the TATA motors for the order. The HR department
designed a cell log sheet and transferred it to the PPC department than the PPC manager
checked the Inventory to get the information of raw materials, the raw material was not
enough to complete the order than the PPC manager gave the information to the
Production Head. From there the production head ordered the required raw material
from the respective supplier. After purchasing the raw material the material head
checked the quality of the raw material as per standard assigned by the Line engineers.
LUCAS TVS LIMITED DAILY PRODUCTION DETAIL
PANTNAGAR (UTTARAKHAND) DATE: PERI
OD:
ALTER
NATOR
PLA
N
MA
DE
REJ/
RET
EST
RECT
IFIED
PAS
SED
CTW
ACCE
PTED
F
O
R
P
DI
A
T
Q.
G.
CD
C
ST
OC
K
MTD
CTW
ACCE
PTED
MTD
DISP
ATC
H
SA15
TATA
ACE
2602
1352
TATA
IRIS
2602
1641
Table 5.2: Cell Log Sheet

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The raw material inventory for the 7,500 alternators was more than 50,000 (including
all the parts) and that was not possible for the material head to assure the quality in
such time tenure. Than the Inventory department took a random sampling of 100 of
each part and checked the each respective one in a machine named Accurate. There
they find that the raw material is good and proper for the production. *if the sample
will not be able to clear the standards i.e. more than 97.5 % than the company will
reject the raw material order and the supplier company will be penalised, rejection
phenomenon is called DRSM.
Product
Name
LTVS
PRO
NO.
Plan
QTY
Bala
nce
for
Sup
ply
01-
07-
201
6
02-
07-
201
6
03-
07-
2016
04-
07-
201
6
05-
07-
201
6
06-
07-
201
6
07-
07-
201
6
08-
07-
201
6
09-
07-
201
6
10-
07-
2016
SHIFT
Alternat
or
2602428
5B
7500 7500 325 300 SUN 325 325 300 325 300 300 SUN A
Mon
thly
plan
325 325 SUN 300 325 325 300 300 300 SUN B
300 325 SUN 325 300 325 325 300 300 SUN C
Actual 7500 950 950 0 950 950 950 950 900 900 0 Total
Table 5.3 : Break down of monthly plan into Day-wise Plan of Alternator
5.1.2 Production Scheduling
Scheduling is the process of arranging, controlling and optimizing work and workloads
in a production process or manufacturing process. Scheduling is used to allocate plant
and machinery resources, plan human resources, plan production processes and
purchase materials. It is an important tool for manufacturing and engineering, where it
can have a major impact on the productivity of a process. In manufacturing, the purpose
of scheduling is to minimize the production time and costs, by telling a production
facility when to make, with which staff, and on which equipment. Production
scheduling aims to maximize the efficiency of the operation and reduce costs.
After getting the information of the raw materials and the man power the PPC
department broke down the monthly plan into the day wise plan and assigned the man
power as per their respective position in the production line. The target had to be
achieved in 10 days which means that more than 750 alternator should be produced
daily and there were 3 shifts of the employees so more than 300 alternator should be

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produced per shift to fill the holiday gaps during production. There is only one
production line in the plant that is of U-Shaped for each shift, line operators are allotted
for monitoring and line engineers for guiding. There were 12 stops in the production
line and the main assembly line is consist of two sub-assemblies. Firstly the line
operators and employees produce a master sample for the alternator and checking the
quality of that alternator as per the parameter assign to the respective product, if the
master sample is found to be good than, the line operators will assign the task for that
shift i.e. scheduled production of alternators for that shift.
From 03-07-2016 TO 10-07-2016
Line Eng. C.C NO OPERATOR NAME Shift Emp. Under
Vikas Raghav
U0531 Rakesh Chandra A 15
U0500 Harish Singh Rana B 15
U6708 Subir Kumar C 12
Table 5.4: Shift Breakdown
Production scheduling tools greatly outperform older manual scheduling methods.
These provide the production scheduler with powerful graphical interfaces which can
be used to visually optimize real-time workloads in various stages of production, and
pattern recognition allows the software to automatically create scheduling opportunities
which might not be apparent without this view into the data. In Lucas TVS the
scheduling technique is, backward scheduling i.e. planning the tasks from the due date
or required-by date to determine the start date and/or any changes in capacity required.
Fig 5.1: When Master Sample is OK Fig 5.2: When master sample is not OK
The benefits of backward production scheduling include:
 Process change-over reduction

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 Inventory reduction, levelling
 Reduced scheduling effort
 Increased production efficiency
 Labour load levelling
 Accurate delivery date quotes
 Real time information
5.1.3 Production Monitoring
Production Monitoring means an on-site Product Inspection performed every day of
your production. An inspector scrutinizes your factory, enforcing your specifications,
selecting units at random for inspection and identifying and eliminating defects.
Production head and PPC Manager examines the Produced alternators after every shift
and makes the report to check the gap between the actual and plan production.
Assembly line of Alternator
Flowchart 5.3: Assembly line of Alternators
De Side (Half
Assembly) +Ve
Terminal
De – Bracket
And Bearing
Assembly
Retainer Plate
De And Rotor
Assembly
Fan And Pulley
De And Sre
Assembly (Full
Assembly)
Cowl Assembly
PDI
Sre Side (Half
Assembly) –Ve
Terminal
Sre And Stator
Assembly
Rectifier
Assembly
Regulator
Assembly
Carbon Brush
Assembly

58. 58 | P a g e
At every section of the assembly line, line-operators always check and guide the
employees. In each section of the assembly line there is one person and after every two
hours there is scheduled inspection is being done line Engineers. There are some section
where the employees required more guidance and instructions. Hence, in each section
the company has installed Japanese Software “POKA-YOKE”, is a Japanese term that
means "mistake-proofing" or “inadvertent error prevention”. The key word in the
second translation, often omitted, is "inadvertent". There is no Poka Yoke solution that
protects against an operator’s sabotage, but sabotage is a rare behaviour among people.
A Poka-yoke is any mechanism in a lean manufacturing process that helps an equipment
operator avoid (yokeru) mistakes (poka). Its purpose is to eliminate product defects by
preventing, correcting, or drawing attention to human errors as they occur. The concept
was formalised, and the term adopted, by Shigeo Shingo as part of the Toyota
Production System. It was originally described as baka-yoke, but as this means "fool-
proofing" (or "idiot-proofing") the name was changed to the milder poka-yoke.
In Lucas TVS, Poka-yoke is implemented at many steps in production process where
something can go wrong or an error can be made. For example, a fixture that holds
pieces for processing might be modified to only allow pieces to be held in the correct
orientation, or a digital counter might track the number of spot welds on each piece to
ensure that the worker executes the correct number of welds.
There are three steps of Poka-yoke followed in Lucas TVS
 The contact method identifies product defects by testing the product's shape, size,
colour, or other physical attributes.
 The fixed-value (or constant number) method alerts the operator if a certain number
of movements are not made.
 The motion-step (or sequence) method determines whether the prescribed steps of
the process have been followed.
Either the operator is alerted when a mistake is about to be made, or the Poka-yoke
device actually prevents the mistake from being made. In Lucas TVS, the former
implementation would be called a warning Poka-yoke, while the latter would be
referred to as a control Poka-yoke

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Lucas TVS argued that errors are inevitable in any manufacturing process, but that if
appropriate Poka-yokes are implemented, then mistakes can be caught quickly and
prevented from resulting in defects. By eliminating defects at the source, the cost of
mistakes within a company is reduced. A methodical approach to build up Poka-yoke
counter measures has been proposed by the Applied Problem Solving (APS)
methodology, which consists of a three-step analysis of the risks to be managed:
 Identification of the need
 Identification of possible mistakes
 Management of mistakes before satisfying the need
This approach can be used to emphasize the technical aspect of finding effective
solutions during brainstorming sessions. There are several benefits of Poka-yoke which
are availed by Lucas TVS.
 Less time spent on training workers;
 Elimination of many operations related to quality control;
 Unburdening of operators from repetitive operations;
 Promotion of the work improvement-oriented approach and actions;
 A reduced number of rejects;
 Immediate action when a problem occurs;
 100% built-in quality control.
Fig 5.3: F/G inventory Alternators Fig 5.4: Production Line of
Alternator

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5.1.4 Quality Control
Quality control, or QC for short, is a process by which entities review the quality of
all factors involved in production. ISO 9000 defines quality control as "A part of quality
management focused on fulfilling quality requirements". Controls include product
inspection, where every product is examined visually, and often using a stereo
microscope for fine detail before the product is sold into the external market. Inspectors
will be provided with lists and descriptions of unacceptable product defects such as
cracks or surface blemishes for example. The quality of the outputs is at risk if any of
these three aspects is deficient in any way.
In Lucas TVS, Quality control emphasizes testing of products to uncover defects and
reporting to management who make the decision to allow or deny product release,
whereas quality assurance attempts to improve and stabilize production (and associated
processes) to avoid, or at least minimize, issues which led to the defect(s) in the first
place. For contract work, particularly work awarded by government agencies, quality
control issues are among the top reasons for not renewing a contract.
In Lucas TVS, for Alternator there are several performance checking parameters, to
uncover the defects which can affect the car engine.
Performance Parameters
 Regulating voltage
 Speed
 Current
 Sound
 Vibration
After checking the alternator on these parameters, the line engineers will check them
on the basis of defect phenomenon (Rejection Technique) this is and physical and visual
test to check whether the alternator is working like the master sample or not and having
the same properties as the master sample have.
Defect phenomenon
 Stator wire touch with SRE

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 Stator wire punch
 Warning lamp uncertainty
5.1.5 Pre-Dispatch inspection
Pre-Dispatch inspection, or PDI, is a part of supply chain management and an important
quality control method for checking the quality of goods clients buy from suppliers.
According to Lucas TVS, PDI is a vital part of SCM, which ensures that production
complies with specifications of the buyer and/or the terms of a purchase order or letter
of credit. After PDI in Lucas TVS there is final random inspection (FRI), which checks
finished products when at least 80% of an order has been produced and export-packed.
Samples are selected at random, according to standards and procedures. Pre-Dispatch
inspection can diminish risks inherent to Internet commerce like phishing and fraud.
In Lucas TVS, the pre-Dispatch inspection is agreed upon between Customer and
former, and it can be used to initiate payment for a letter of credit. In the plant PDI is
performed at different stages before Dispatch, such as checking the total amount of
goods and packing, controlling the quality or consistency of goods, checking of all
documentation, as for example test reports, packaging list, or verification of compliance
with standards of the destination country like ASME, CE mark and import duties.
There are three Steps of PDI carried out in Lucas TVS
Initial Production Inspection the objective of Initial Production Inspection, or Pre
Production Inspection (PPI), is to identify defective materials or components prior to
the production process, thereby minimizing the risk of non-conformities and allowing
for timely corrections where necessary. IPI
During Production Inspection the Production Inspection (DUPRO or DPI), or In-line
Product Inspection (IPI), checks semi-finished or finished goods part-way through the
production process. Generally, this takes place when between 40% of your order has
been produced and 20% export-packed. Doing so improves your control over
production and allows for timely correction of defects and improvements to quality.
DUPRO or DPI

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Final Random Inspection It ensures that the production complies with your
specifications and/or the terms of your purchase order or letter of credit. The Final
Random Inspection (FRI), or Pre Dispatch Inspection (PDI), checks finished products
when at least 80% of your order has been produced and export-packed. Samples are
selected at random, according to standards and procedures. FRI
Consignment to ware house
After the PDI Finished goods are sent to CTW (Dispatch Centre) to identify the
production quantity after every shift and each daily plan. CTW Person handed over the
goods to Packaging department for packing of the goods. When the complete order has
been packed, the goods than transferred to CDC for the invoice.
Fig 5.5: Packaging Department Fig 5.6: CTC
Production head will examine the goods and if there is a gap between the planned
quantity and the actual, he/she will determine the productivity losses and the reason
behind the gap. The respective line operator and line engineer will prepare Delivery
adherence report to determine the gap and hand over it to the Production head. The
formers incharges will give the reasons of productivity losses (4M’s Losses) Production
Head will breakdown the delivery adherence report into the 4M’s Losses and give the
report to the HR department.

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Percentage vary between plan vs actual
Prod
uct
Name
LTV
S
PRO
NO.
Plan
QTY
Balan
ce for
Suppl
y
01-07-2016
02-07-2016
03-07-2016
04-07-2016
05-07-2016
06-07-2016
07-07-2016
08-07-2016
09-07-2016
10-07-2016
PlannedQTY
ActualQTY
Gap
PlanVsActual
Alter
nator
26024
285B
7500 7500 325 300 SUN 325 325 300 325 300 300 SUN
7500 7375 125
2
%
Monthly plan
325 325 SUN 300 325 325 300 300 300 SUN
300 325 SUN 325 300 325 325 300 300 SUN
Daily Plan
Table 5.5: Production Monitoring
Loss identification (4m)* to management
Reason behind the Productivity Losses
4M
Man
04-07-2016 (A)
Flood in the City, hence the employees reached
very late
06-07-2016 (C)
Heavy Downpour during Shift C in the night 7
employees were present out of 12
Machine
08-07-2016 (B)
09-07-2016 (B)
During shift B in both the days in the rectifier
section assembly there was a heating effect of the
current, so the employees were working after a
periodic rest for the cooldown of the machine.
Material -
Raw material and WIP material was sufficient
for the production in all the days during every
shift and there was continuous supply of
material.
Method -
The work done by the employees was impressive
and they were properly guided by the Poka-yoke
and line engineers.
Table 5.6: 4M’s reason for productivity losses

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4M’s Losses Breakdown
Planned Qty Actual Qty Gap Plan Vs Actual
7500 7375 125 2%
Breakdown In 4M's Losses
4m
4m Planned
Actual
Gap
Plan Vs
Actual
Man
04-07-2016 (A) / 325 294 31 9.5%
06-07-2016 (C) / 325 276 49 15.1%
Machine
08-07-2016 (B) / 300
277 23 7.6%
09-07-2016 (B) / 300 278
22 7.3%
Material - - - -
Method - - - -
Table 5.7: 4M’s Breakdown
Kaizen philosophy
Kaizen, Japanese for "improvement." When used in the business sense and applied to
the workplace, kaizen refers to activities that continuously improve all functions and
involve all employees from the CEO to the assembly line workers. It also applies to
processes, such as purchasing and logistics and cross organizational boundaries into the
SCM. It has been applied in healthcare, psychotherapy, life-coaching, government,
banking, and other industries. In Lucas TVS, there are various places where they have
implied kaizen theory and it proved to be very beneficial reducing time, enhance quality
and very less productivity loss. Lucas TVS have won Deming Award because of
applying Deming Cycle (PDCA) in a very short period of time.
Due to increased customer expectations and global competition, the automotive
component manufacturing companies are desperately trying to improve productivity at
lower cost and still retain excellent product and service quality. Under these
circumstances, the implementation of lean tool kaizen, improves the production
environment with moderate investment. This case study carries evidence of genuine
advantages when applying lean tools to the manufacturing shop floor

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Fig 5.7: Before Kaizen Fig 5.8: After Kaizen
Tube off-set checking method
S.No Activity Time Before
Kaizen (s)
Time after
Kaizen (s)
1 Tube off-set checking 300 30
2 Lifting the previous fixture 240 80
3 Moving the unloaded fixture 150 60
Table 5.8: Kaizen result layout
5.1.5 Inventory management
Inventory management is the overseeing and controlling of the ordering, storage and
use of components that a company will use in the production of the items it will sell as
well as the overseeing and controlling of quantities of finished products for sale. A
business's inventory is one of its major assets and represents an investment that is tied
up until the item is sold or used in the production of an item that is sold. It also costs
money to store, track and insure inventory. Inventories that are mismanaged can create
significant financial problems for a business, whether the mismanagement results in an
inventory glut or an inventory shortage.
In Lucas TVS, the objective of the inventory management is to achieve satisfactory
levels of customer service while keeping inventory costs within reasonable bounds.
Lucas TVS’s Inventory management system is very effective because the system is
keep tracking on inventory regularly which helps for a reliable forecast of demand.

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Hence, it is very successful inventory management because it involves creating a
purchasing plan and that will ensure that items are available when they are needed (but
that neither too much nor too little is purchased) and keeping track of existing inventory
and its use. In the plant the inventory department is using FIFO which stands for first-
in, first-out, meaning that the oldest inventory items are recorded as sold first but do
not necessarily mean that the exact oldest physical object has been tracked and sold. In
other words, the cost associated with the inventory that was purchased first is the cost
expensed first.
Fig 5.9: FIFO in inventory Fig 5.10: Inventory Store
Inventory Counting
In Lucas TVS the inventory is counted on monthly basis that is periodic system
counting, at every beginning of the month the employees will physically count the
inventories in the stores and make a report which will handed over to inventory manager
and the inventory manger will transfer the information to production head. The
production head will identify the inventory with respect to the data present in the
inventory management software, to determine the gaps and losses. After that the
production head will find the adherence gap between actual inventory and the present
inventory. Than the report is transmuted to HR Department.
In the Plant the Inventory department is using ABC Classification technique to
determine the need of inventory. This technique is used for Classifying inventory
according to some measure of importance and allocating control efforts accordingly.

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 Class A: High cost items. Very tight control & tracking. (5%)
 Class B: Medium cost items. Tight control & moderate tracking. (15%)
 Class C: Low cost items. No or little control & tracking. (80%)

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CHAPTER – 6
SWOT Analysis

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6.1 Swot Analysis
6.1.1 Strength
Lucas TVS Limited has a worldwide presence. And has more than 150 satisfied
OEM Customer and 1 Million clients. It is the only private company that has class
100 clean room in India. The other class 100 clean room available is in IIT Bombay,
Powai which is specifically used for research purpose that too only under strict
norms and regulations. The company guarantees 100% customer Satisfaction as per
the assessment report which is generated within 24 hours of submission of faulty
AEC Parts.
The company has its own proprietary tools and techniques for replaceable
accessories others who use 3rd
party service providers for replaceable accessories.
The company provides employment for over 150 engineers, Lucas TVS has
inventory with 10,000 EECs, ECPs and EFIPs parts and child parts. Lucas TVS
ensures that every AEC part being available in the market are being stocked into its
inventory so that in specific cases of damages, the spare part of exact same
configuration is available in its inventory. The daily man power of the plant is more
than 200 per shift and there are 3 shifts in a Day.
The location of the plant is very nearby to the most of its customers as well as the
suppliers which reduces the transportation cost and the time as well. Hence, it help
to both the companies in SCM. The company is using Poka-Yoke technology which
is playing a vital role in the productivity. In India Lucas TVS has won Deming
Award because of its Deming cycle, is the shortest and improved the productivity
with a very moderate investment.
6.1.2 Weakness
The major weakness of the company is its pricing policy which is 2-3 times higher than
the market rates at which 3rd
party vendor provides services for replaceable accessories.
Lucas TVS has a priority service plan which enables users to have their devices to have
a higher priority. In cases of mass damage of AEC Parts as in cases of a natural calamity
or accidental damage, strict adherence to priority service could backfire as customers

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may go for other service providers who may offer flexible priority plans. Lucas TVS is
yet to start an aggressive marketing campaign, which could increase the brand
awareness about stellar among the potential customers. Lack of man power in the
Aftermarket sales force could also be considered to be a weakness of the company.
The man power of the Lucas TVS is more than 750 but the point of concern is that in
the higher level management, Lucas TVS prefers only experienced and South Indian
people because of the Head plant presence is in Chennai. So the employees are not able
to communicate with them. In the plant the first aid facility is far away from the plant
and there is only vehicle assigned for that, in case of serious incident or accident this
can create a huge issue.
Hazardous scrap is piled out on an open area and the company is storing that waste 15
days after they send it for recycling to reduce the transportation cost, but hazardous
material present in scrap causes death, injury, or environmental damage. Toxic
materials such as asbestos or metals such as beryllium, cadmium, or mercury may pose
dangers to personnel, as well as contaminating materials intended for metal smelters.
6.1.3 Opportunities
Optimization of fuel-driven combustion engines Parts and cost efficiency programs are
good opportunities for the Lucas TVS. Emerging markets will be the main growth
drivers for a long time to come, and fuel efficient cars are the need of the hour so the
EECs and EFIPs. Making strategic alliances can be a smart strategy for Lucas TVS, by
using specialized capabilities & partnering with other companies, they can differentiate
their offerings.
Three powerful forces are rolling the auto industry. Shift in consumer demand,
expanded regulatory requirements for safety and fuel economy, and the increased
availability of data and information. Also with the increase in nuclear families there has
been increase in demand of two-wheelers & compact cars and this will grow further.
And hence the demand for OEM components increases. Entering new markets like
Asian & BRIC nations will result in upsurge in demand of vehicles. After these markets,
other markets are likely to emerge soon.

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Given the increase in electronic content, Lucas TVS need to collaborate with suppliers
and experts outside the traditional auto industry. Accomplishing this will require
changes in the way of function. Lucas TVS Should look to their top suppliers to co-
invest in new global platforms & this will be the driving force in the future.
6.1.3 Threat
At least for the passenger segment fluctuations in the fuel prices remains the
determining factor for its growth. Also government regulations relating the use of
alternative fuels like CNG. Shell gas is also affecting the inventories. Electronic
vehicles are coming to the market by which the demand ECPs is going down as there
are some 3rd
party vendors supplying respective components at very cheaper rates.
Macroeconomic uncertainty, Recession, un-employment etc. are the economic factors
which will daunt the automobile industry for a long period of time. Due to the fact that
mature markets are already overcrowded, industry is shifting towards emerging markets
by building facilities, R & D centers in these markets. But the ROI out of these decisions
is yet to be capitalized.
6.2 Competitors Analysis
JBM Group
JBM Group is a focused, dynamic and progressive organization that provides customers
with value added products, services and innovative solutions. The Group has a
diversified portfolio to serve in the field of automotive, engineering & design services,
renewable energy and education sectors and has an infrastructure of 35 manufacturing
plants, 4 engineering & design centres across 18 locations globally.
With turnover of USD 1.2 billion, JBM Group has broadened its horizons by focusing
on quality delivery, solutions approach, product development processes, flexible
manufacturing systems and contract manufacturing.
JBM Group is primarily a tier- 1 supplier to the automotive OEM industry and caters
services to esteemed clients that include Ashok Leyland, Bajaj Auto Ltd, Fiat, Ford,

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General Motors Corporation, Honda, Hero, JCB, Mahindra, Maruti Suzuki, Renault,
Nissan, TATA, Toyota, TVS, Volvo-Eicher, Volkswagen and many more.
The Group has alliances with more than 20 renowned companies globally and the
associations include Arcelor Mittal, Cornaglia, Dassault Systems, JFE Steel
Corporation, Magnetto (CLN Group), Ogihara, Sumitomo and many more. The
organization’s structure enables each business unit to chart its own future and
simultaneously leverage synergies across its competencies.
The organization believes that success depends on collective competencies, technical
abilities and commitment of human capital. The core strength and value asset of JBM
Group is the dedication of 20,000 employees, who synergize to deliver quality results
to the clients.
JBM Group is a true global corporate citizen with ‘pause for a cause’ mantra.
Commitment towards the upliftment and development of the society, the group
executes large gamut of activities through its corporate social responsibility arm - Neel
Foundation. The organization believes to enrich the quality of life of the community
and prevails to preserve its ecological balance as well as its cultural heritage.
Bosch India
In India, Bosch is a leading supplier of technology and services in the areas of Mobility
Solutions, Industrial Technology, Consumer Goods, and Energy and Building
Technology. Additionally, Bosch has in India the largest development center outside
Germany, for end to end engineering and technology solutions.
The Bosch Group operates in India through nine companies, viz, Bosch Ltd., Bosch
Chassis Systems India Pvt. Ltd., Bosch Rexroth India Ltd., Robert Bosch Engineering
and Business Solutions Pvt. Ltd., Bosch Automotive Electronics India Pvt. Ltd., Bosch
Electrical Drives India Pvt. Ltd., BSH Home Appliances Pvt. Ltd., ETAS Automotive
India Pvt. Ltd., and Robert Bosch Automotive Steering India Pvt. Ltd. In India, Bosch
set up its manufacturing operation in 1953, which has grown over the years to include
15 manufacturing sites, and seven development and application centers. Bosch Group
in India employs over 29,000 associates and generated consolidated revenue of about

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₨.15,250 crores* in 2014 of which ₨. 10,800 crores* from third party. The Group in
India has close to 12,000 research and development associates and has filed for around
150 patents in 2014.
In India, Bosch Limited is the flagship company of the Bosch Group. It earned revenue
of over ₨. 9,570 crores in 2014.
Denso India
DENSO is a leading global supplier of advanced automotive technology, systems and
components, for all the world's major automakers. With over 130,000 employees in
more than 35 countries, our global turnover places us amongst some of the largest
companies in the world. This lead could be achieved due to our continuous keenness
for anticipating the needs of automakers and closely partnering with customers right
from the start. Our teams work promptly and diligently to manufacture products that
show a commitment to quality, safety and environment. Our successful practices
through the years are due to continuous Kaizen and PDCA as highlighted by our
employees.
DENSO started its operations in India from 1984 onwards and since then has been
continuously supplying superior quality products to its customers. With current
workforce of over 3000 associates in India DENSO caters to almost all the Major
Automakers in India.
6.3 CONCLUSION
Significant growth in automotive aftermarket industries has caught the eyes of
many. Now there is so many companies into OEM Market. Some of them are in
EECs, some are Producing ECPs while some of them are making EFIPs, but Lucas
TVS is in all the three domains. Each and every company is providing the OEM
Components and Accessories replacements. Important point to be noted is that
Lucas TVS is the only company, which has class 100 clean room. Which states that
the R & D department of Lucas TVS has great efficiency.

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Class 100 clean room is manufacturer referred standard environment, where in a
AECs are produced and recovered in a very proper manner. In Class 100 clean room
size of dust particle is less than 100 micron. Considering rarest of rare cases wherein
dust particle would settle on the plates (Retainer) then also it would not create any
Damage on the components.

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CHAPTER – 7
CUSTOMER SATISFACTION TOWARDS
AUTO ELECTRICAL COMPONENTS

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7.1 INTRODUCTION
In the last few years, the Indian Automotive industry has been spectacular growth the
country stands next to china and Japan in terms of production and sales respectively.
Majority of Indians especially the youngster prefer motorbikes rather than cars.
Capturing a large share in the two wheelers industry, bikes and scooters cover major
segment. Bikes are large variety of two wheelers that are available in the market, known
for the most recent technology and improved mileage Indian bikes, mopeds stand for
style and class for everyone in India. Auto-Electrical components are the Backbone of
any automotive industry.
Lucas TVS has the monopoly in the automotive aftermarket industry though there are
certain areas where the plant lags in terms of production. Customer satisfaction is about
relationships between the customer and product or service and the provider of a product
or service. High customer satisfaction ratings are widely believed to be the best
indicator of company’s future profit. Satisfaction can be broadly characterized as a post-
purchase evaluation of product quality given pre-purchase expectation. Customer
satisfaction can be experienced in a variety of situations and connected to both goods
and services. It is a highly personal assessment that is greatly affected by customer
expectations.
“Satisfaction based on the customer’s experience of both contacts with the
organization and personal outcomes”
7.2 NEED OF THE STUDY
The scope of the study is confined within Lucas TVS the study is emphasized on
customers’ attitude towards different components provided by Lucas TVS and their
satisfaction level. The study seeks to help other automotive aftermarket company to
realize the value of Customer satisfaction and how to create value for them.
7.3 OBJECTIVE OF THE STUDY
 To study the Customers’ satisfaction towards the quality Auto-Electrical
Components of Lucas TVS Limited.