Vdocuments - MX - Divgi Industries Sirsi

DIVGI INDUSTRIES PVT LTD, SIRSI
CHAPTER-I
INTRODUCTION
A socialunit of people that is structured and managed to meet a

need or to pursue collective goals. All organizations have a
managementstructure that determinesrelationships between the different
activities and the members, and subdivides and assignsroles, responsibilities,
and authority to carry out different tasks. Organizations are open systems--they
affect and are affected by their environment
There are a variety of legal types of organizations, including

corporations, governments, non-governmental organizations, international
organizations, armed forces, charities, not-for-profit corporations, partnerships,
co-operatives, and universities. A hybrid organization is a body that operates in
both the public sector and the private sector simultaneously, fulfilling public
duties and developing commercial market activities.
In the social sciences, organizations are the object of analysis for a

number of disciplines, such as sociology, economics,[1]political science,
psychology, management, and organizational communication. The broader
analysis of organizations is commonly referred to as organizational structure,
organizational studies, organizational behavior, or organization analysis. A
number of different perspectives exist, some of which are compatible:
GOVT. FIRST GRADE COLLEGE, SIRSI Page 1

1. From a process-related perspective, an organization is viewed as an entity

is being (re-)organized, and the focus is on the organization as a set of
tasks or actions.
2. From a functional perspective, the focus is on how entities like
businesses or state authorities are used.
3. From an institutional perspective, an organization is viewed as a
purposeful structure within a social context.
Economic approaches to organizations also take the division of labour as a

starting point. The division of labour allows for specialization. Increasing
specialization necessitates coordination. From an economic point of view,
markets and organizations are alternative coordination mechanisms for the
execution of transactions.
By coordinated and planned cooperation of the elements, the organization is

able to solve tasks that lie beyond the abilities of the single elements. The price
paid by the elements is the limitation of the degrees of freedom of the elements.
Advantages of organizations are enhancement addition and extension.

STATEMENT OF THE PROBLEM
One of the main problems faced by management in organizations is the need to

maintain a competitive advantage. With the global economic climate it has been
difficult for companies and organizations to keep up with their rivals, let alone
better them. Corporate culture is one responsibility that management needs to
adhere to because it is vital when you want to succeed in business. It creates a
sense of innovation and productivity as opposed to a more negative culture
which may stifle employees and detrimentally affect job gratification. In
addition, managers have a huge responsibility for guiding the organization in
the right their employees and resources in order to put the organization in a
direction that will grant them success. Most modern management take on a
strategic management style which initially states the main aim of the particular
mission which follows by the processes that will be carried out on a day-to-day
basis.
Moreover, one of the most important aspects that a good manager requires is
solid communication skills. It is very likely in business that you are going to
come into contact with conflicting styles of communication, however it is the
manager's job to be aware of this as well as their own style. They need to be
able to enforce their own style of communication while being able to adapt to
others, especially if they are consulting with other organizations and companies.
The first sees in spontaneity decisions made at root level, local initiative and the
absence of delegated decision making. In this sense all revolutions have been

largely spontaneous, at least at first. Consciousness, as the opposite, comes to

mean centralization and plans carried out, on instructions, by members of a
disciplined organization. They may, individually, be unaware of the part their
action plays in the total scheme, and the consciousness is that of the leadership,
whether it is elected or not. Seen thus, Lenin’s claim that consciousness must
come to the workers from outside, from an organization of professional
revolutionary intelligentsia, would indeed be the sinister cornerstone of an
elitist doctrine that many see it to be. At times Lenin does stray into this
meaning of the terms, especially when seeming regrettably to make a virtue of
the necessary limitations of internal democracy imposed on a revolutionary
organization by illegality and the need for secrecy.
REVIEW OF LITERATURE

Organizing is a study of collection the available resources, charting and

chalking out their orderly uses and finally accomplishing the pre-set
organizational plans by structuring tasks.
In the word of Chester Bernard, an organization is “a systematic of consciously

coordinated activities or efforts of two or more persons”. In other words, it can
be called as a cooperative system in which people gather and formally agree to
combine their effort for a common purpose.
According to LOUIS ALLEN “Organization is the process of identifying and

grouping work to be performed, defining and delegating responsibility and
authority and establishing relationship for the purpose of enabling people to
work most efficiently together accomplishing objectives.
Management s not only important from the companies’ point of view but it is
required in each and every activity one can think of. Management comprises
directing and controlling group of one or more people or entities for the purpose
of coordinating and harmonizing that group to wards accomplishing a goal.
Management often encompasses the deployment and manipulation of human
resources, technological resources, and natural resources. Management operates
through various functions, often classified as;
1. Planning
2. Organizing
3. Leading/motivation
4. Controlling
According to F.W. TAYLOR “management is the art of knowing what you
want to do and then seeing that it is done in the best and cheapest way”

According to HENRY FAYOL “To manage is to forecast and to plan, to

organize, to command, to coordinate and to control”
OBJECTIVES OF THE STUDY
1. To study the organization and management of divgi industry.

2. To study production process of divgi industry.
3. To study labour and capital of divgi industry.
4. To know the history of divgi industry.
5. To know theinfracture facility of the divgi industry
METHODOLOGY AND PROJECT DESIGN
Research methodology is a systematic way for solving any research problem.

It’s a science of any thing how research is done scientifically. It studies the
various steps that are generally adopted by a researcher in studying the
research problem.
Source of data collection:
Primary data
The primary data are those which have been collected fresh for the first time
and thus happen to be original in character. The primary data collection
involves the collecting of information from the first time by observation,

experiment, and questionnaire and through interview schedule in the original
form by the researcher himself or his nominees.
Secondary data
These data are those data which have been collected by some other and which
have been processed. Generally speaking secondary data are information which
has been previously collected by some organization to satisfy its own needs but
the department under reference for an entirely different reason using it.
There are two sources for secondary data;
1. Published data: data that is already available in books, magazines, trade

journals, newspapers, report prepared by research scholar etc
2. Unpublished data: this is not published. It can be found in unpublished

autobiographies, some govt. aspects and private individual organizations.
STUDY AREA
The researcher intended to study in sirsi taluk ofuttarakannada district of

Karnataka state. Divgi Industries Private Limited (DIPL) is situated at Banavasi

Road, Sirsi. It is a medium scale engineering industry of prestigious city SIRSI.

DIPL was incorporated in the year 2000.Its actual commercial activities started
in April 2003.
PERIOD FOR THE STUDY
This study is mainly for the purpose of partial fulfillment of BBA study. The
allotted time is very less only one month. Study is started from 9th December
2012 and ends in 9th January 2013.
SCOPE OF THE STUDY
Importance or area of study: to study the problems and suggestions
The studies throw various aspects of organization and management such type of
very useful to know organization and management and also to overcome the
problem of organization and management. It is very useful to the entrepreneur
to under stand the nature and working of organization and management and also
to adopt innovative methods. By that to reduce cost of production and to also to
improve the quality of the product and to get maximum benefit.
LIMITATIONS OF THE STUDY

The study is limited and may not applicable in all places in all time because of
the study is confined to a various limitations:
a. DIPL depends completely on Divgi Warner Pvt. Ltd (Pune) for

procurement of raw materials & supply of finished goods.
b. Limited study area, the study is conducted sirsi uttarkannada
district.
c. Limited time, the study is only one month 9th December2012 to 9th
January2013.
d. Another Limitation is that limited resources.
e. Lack of co ordination is the one more limitation of this study.
CHAPTER SCHEME
Chapter-1
1. Introduction
2. Statement of the problem

3. Review of literature
4. Objective of the study
5. Methodology
a) Source of primary data
b) Source of secondary data
c) Study area
d) Sampling for the study
e) Period of study
6. Scope for the study
7. Limitation for the study
Chapter-2
Nature and growth of auto component industry
1. Nature and growth of auto component industry in world

2. Nature and growth of auto component industry in India
3. Nature and growth of auto component industry in Karnataka
Chapter-3
1. Company profile
2. Product profile
Chapter-4
Departmental study
1. Purchase department

2. Stores department
3. Manufacturing department
4. Human resource department
5. Quality department
6. Computer aided design department
7. Finance department
8. Maintenance department
Chapter-5
1. Summary
2. Findings
3. problems
4. Suggestions
5. Conclusion
6. Bibliography
CHAPTER -II
NATURE AND GROWTH

Auto Components Market
Strong growth in the domestic automobile industry and a stable 10-15% future
growth outlook over the next two years would drive demand for auto
components both in the domestic OEM and the aftermarket. Exports too are in a
scale up mode for leading players like Bharat Forge, Amtek Auto and MICO.
We believe, a slowdown in key global markets and the fragile financial health
of global OEMs as also Tier-I vendors would lead to higher outsourcing by
these players to low cost auto component players in the long term. We expect
15% revenue CAGR and 22% earnings CAGR for our auto component universe
over FY07-09 led by strong revenue and earnings growth for Bharat Forge,
MICO and Balkrishna Industries over the same period.
Domestic growth on a firm footing, exports looking up:
It is expected that domestic revenue for auto component companies will

remain strong given a stable 10-15% volume growth outlook for various auto
segments. Exports for leading players, too appear to be scaling up and a
slowdown in key global markets and fragile financial health of global OEMs
and Tier-I vendors will only accelerate the pace of outsourcing to leading auto
component players in Low Cost Countries like India. Amtek Auto has
successfully implemented the strategy of acquiring customer base overseas and
outsources the labor intensive operations to its low cost Indian facilities.
Expect strong earnings momentum for leading players:

The expected revenue CAGR is 15% and earnings CAGR is 22% for auto
component market over FY07-09 led by strong growth for Bharat Forge, MICO
and Balkrishna Industries
Strong growth outlook for domestic auto OEMs to boost demand
While auto component companies retain focus on enhancing their

overseas revenues, their domestic businesses too appear on a firm footing with
buoyant growth outlook for the domestic auto OEMs. Favorable demographics
along with very low vehicle penetration indicate strong long-term demand
prospects for cars and two-wheelers. Strong growth in industrial production,
emergence of new growth drivers like organized retail, and the ongoing pace of
investments and infrastructure development in the country would drive demand
for commercial vehicles. While factors like higher interest rates and a higher
base could check growth rates in the near term, the industry’s prospects
nevertheless remain strong.
NATURE AND GROWTH OF AUTO COMPONENT INDUSTRY IN

WORLD
The global auto component industry experienced moderate growth over the last
five years and is expected to continue its growth momentum reaching
approximately $730.8 billion in 2017 with a CAGR of 3.2% over next five
years (2012-2017). APAC is anticipated to emerge as the leading growth
market over the forecast period due to high demand and low-cost manufacturing
practices in the region. Lucintel, a leading global management consulting and
market research firm, has analyzed the global auto component industry and
presents its findings in "Global Auto Component Industry 2012-2017 Trend,

Profit, and Forecast Analysis." The global auto component industry is a highly
diversified sector that involves engine and auto component manufacturers;
including aftermarket parts manufacturers, suppliers, dealers, and retailers.
Features and Scope
To make any investment or strategic decision, you need adequate and timely
information. This market report fulfills this core need. Some of the features of
this market report are:
a. Industry size estimates in terms of (US $) value by region and by

segment
b. Global auto component industry analysis annual trend (2006-2011)
and forecast (2012- 2017)
c. Porter's Five Forces analysis
d. New product launch and merger and acquisition activity in global
auto component industry
e. Quarterly demand trend (Q1 2010 to Q4 2011)and forecast
analysis (Q1 2012 to Q4 2012) for global auto component industry
f. Gross and net profit trends in the global auto component industry
g. Cost structure trend in the global as well as regional auto
component industry
Industry Analysis & Industry Trends

The Global Auto Parts & Accessories Manufacturing industry cannot exist
without motor vehicle production. Over the past five years, motor vehicle
production has been supported by furious growth in China and other developing
economies. Incomes in China have risen, which has created new demand for
motor vehicles. Motor vehicle manufacturers began opening plants to satisfy
demand, and parts manufacturers soon followed. A rise in the number of
vehicles in use globally also been supported the aftermarket parts segment.
However, skyrocketing fuel prices and stringent emissions regulations have
slowed global demand for new motor vehicles, which has flowed on to slowed
automotive parts and accessories revenue.
Industry SWOT Analysis
The Global Auto Parts & Accessories Manufacturing industry is in decline in

mature economies such as the United States, while it is enjoying a growth phase
(nearing maturity) in emerging economies. The majority of the rise in industry
establishments over the 10 years through 2017 is due to the explosion of the
automotive sector in China. The story is completely different in the United
States, for example, where companies are going bankrupt, being acquired and
consolidating furiously to survive. Global companies have been able to hedge
against domestic downturn by expanding into new locations such as China,
India, Mexico, Brazil and Russia
Indian auto component industry has seen some silver lining with exports, which
continues to grow at 15-20%. However, some of the domestic players say,
although the first quarter was good for exports, there are signs of slowdown in
the international market too, especially in the Asia-Pacific region. We are glad

that exports in 2012-13 continue to be robust despite the global economic

turmoil. Our exports stood as $6.9 billion in 2011-12, growing 33% over $5.2
billion in 2010-11. We expect exports to continue to grow at around 15% this
year, which is somewhat slower than that of the last year. Europe, especially
Germany, with 35% share continues to be our largest export destination
followed by the US with 23% share. Interesting, 80% of our exports are to the
OEMs, which is a testimony to the global acceptance and recognition of India
manufactured auto components.
NATURE AND GROWTH OF AUTO COMPONENT INDUSTRY IN

INDIA

The auto component industry has come of age and now forms an important
component of the Indian economy. In recent years, it has grown more
impressively, fetch double digit growth. More interestingly, it has captured
attention as well as business from leading auto makers of the world. The
industry plays a crucial role in the automobile sector. Manufacturing vehicles
typically involve assembling a large number of components out-sourced from
number of ancillaries or component manufacturers. Competitiveness with
quality as a theme has been the watchword for the Indian industry and
especially the auto component industry ever since the Indian economy was
opened up to the world in the early 1990s. While economic revival, lower
interest rates and better road infrastructure are driving domestic demand for
automobiles and, therefore, components, increasing outsourcing by global
automobile majors is creating a huge export opportunity for Indian component
manufacturers.
Industry dynamics
The Indian auto components industry started out small in the 1940s supplying
components to Hindustan Motors and Premier Automobiles, two largest
manufacturers of automobiles in India at that time. In the 1950s, the arrival of
Telco, Bajaj, and Mahindra& Mahindra led to steadily increasing production. A
closed market with high import tariffs characterized the Indian auto component
industry pre 1985. 1985-91 saw significant JVs in the Indian auto component
segment with Japanese manufacturers. After 1991, the delicensing of the sector
led to global auto manufacturers initiating assembly operations in India.
Industry into the following product segments:

i. Engine and engine parts: Pistons, piston rings, piston pins,

gaskets, carburetors, fuel injection pumps, etc.
ii. Drive transmission and steering parts: Transmission gears,
steering gears, crown wheels and pinions, axles, wheels, etc.
iii. Suspension and braking parts: Leaf springs, shock absorbers,
brake assemblies, etc.
iv. Electricals: Spark plugs, starter motors, generators,
distributors, voltage regulators, flywheel magnetos, ignition
coils, etc.
v. Equipment: Dashboard instruments, headlights, horns,
wipers, etc.
vi. Others: Fan belts, sheet metal parts, plastic moldings’, etc.
The major players in the auto ancillary industry can be classified between the
ones catering to the two wheeler industry and the four wheeler industry. MICO,
Bharat Forge, Sundaram Clayton, Sundaram Brakes, Rane Brakes, etc. mainly
cater to commercial vehicles/tractors. There are many companies like Ucal
Fuel, Motherson Sumi, PRICOL, Subros, etc. which supply mainly to car
industry. Companies like Munjal Showa, Lakshmi Auto, Omax Auto, etc. cater
to two-wheelers.
Sectoral Performance

The auto-ancillary was the best performing sector among the intermediate
goods. Different segments of the sector such as bearing, casting, fasteners,
batteries and tyres have grown in a range of 25-40%.
The main reason for boost in export is that the nature of the customer base of
overseas market has been undergoing major change. Indian companies are
transforming into principal suppliers for the Original Equipment Manufacturers
(OEMs) from the after sales market or replacement market. The company has
facilities for manufacturing patterns, centrifugal castings of phosphor bronze
rings, ferrous castings, aluminum castings, heat treatment, forging, fabrications
and cutter manufacturing in-house which constitute the major raw materials for
gearboxes.
Future Outlook
Given the significant scale up of capacities by the domestic majors, and their
improving global cost effectiveness, the domestic auto ancillaries are well set to
sustainable scale up their share of the global auto component pie. The players
are aggressively focusing on new client acquisition, inorganic growth in
developed countries and cost reduction measures on fronts like quality,
delivery, design and management.
Growth in the domestic market would be driven by sustained growth in supplies

to OEMs as well as acceleration in the demand from replacement market.
Moreover, cars, utility vehicles and CVs made in India are increasingly getting
acceptance in foreign markets, thus driving the demand further. Even Indian
two-wheeler majors are targeting markets abroad. Simultaneously, foreign auto
majors like Ford and Hyundai are making India its manufacturing base for

several models. Overall, the short to medium term outlook for the domestic auto
component producers is positive. Automobile industry, which is a key driver of
auto-component industry, is likely to grow at 12-17%. Along with this some
other key drivers including exports, outsourcing, and replacement market are
slowing down competitiveness in global markets in turn boosting the
productivity of Indian auto components industry.
Hindustan Composites is planning break lining and clutch facing unit near the
proposed Tata Motor plant at Singur in Hooghly district of West Bengal. The
company has already started discussion with few tier 1 component
manufacturer of Tata Motors in this regard The company is planning to tie up
with an outfit which is likely to be entrusted with for the break assembly of
small car. Tata Motors is overhauling its outsourcing policy across all
categories of cars. As part of this policy, which is aimed at keeping costs under
control, the company has taken a conscious decision to move away from the
multiple vendor models to a single vendor model.

The world's top car makers turn to India for the nuts and bolts of their vehicles.
Riding this success, and capitalizing on the spiraling demand of domestic auto
companies, the Indian automobile components industry has emerged as one of
India's fastest growing manufacturing sectors, and a globally competitive one.
A number of them source critical components from India, with engine parts
making up nearly a third of all exports:
Electrical Parts
Equipments
10%
11%
20% Engine Parts
13%
33%
Suspension & Braking
Parts
13% Body And Chasis
Drive Transmission &

Steering Parts

NATURE AND GROWTH IN KARNATAKA
The State of Karnataka is bounded by Maharashtra and Goa States in the North
and North-West; by the Arabian Sea in the West; by Kerala and Tamil Nadu
States in the South and by the State of Andhra Pradesh in the East. The State
extends to about 750 kms from North to South and about 400 kms from East to
West, and covers an area of about 1,91,791 sq.kms. Karnataka accounts for 5.83
percent of the total area of the country (32.88 lakh sq.Kms) and is the eighth
largest Indian state by area, the ninth largest by population and comprises of 28
districts. Bangalore is the capital city of the State and is at the forefront of the
rapid economic and technological development. Kannada is the official and
most widely spoken language.
The State is blessed with a fair share of natural resources – an extensive river
systems that aids power generation besides sustaining agriculture, a wide
spectrum of minerals ranging from iron ore to limestone, granite to gold, a
temperate climate conducive to growth of agriculture as well as industry besides
a 320 km long coastline which supports a flourishing marine industry
Present Scenario & Strengths

The growth drivers for the development of the sector are the rising income
levels and higher disposable income, rapid urbanization of population and
growth in semi urban areas. Globally the auto component industry is set to grow
at about 3% till 2015 with 635 of growth coming from emerging countries.
India has opportunity to capture major portion of the outsourcing deal in the
next decade. Termed a priority sector, auto and auto parts hold the key to
economic growth of the state. This is an industry where the small and medium
enterprises (SME) can showcase their mettle; concentration on auto components
by itself can accelerate the growth.
Potential & Opportunities
1. The fourth-largest State in Automotive production in India.

2. Produces more than a quarter of India’s Aircraft and Spacecraft.
3. One of the largest Foundry industry clusters at Belgaum.
4. India’s first Aerospace SEZ operational at Belgaum.
Prime Locations of Business
The main locations for automobile industries and the resources available are at
Bangalore Rural, Ramanagara, Kolar, Dharwad, and Belgaum.
Karnataka Industrial Areas Development Board (KIADB) is developing an

industrial area near Bidadi in 442 acres mainly to promote Automobile &
manufacturing Industries.
Major Players

Bosch Toyota Kirloskar Motor Ltd TVS Motors
Tata Motors L&T Komatsu

Volvo
Vikrant Tyres BEML Escorts
Reva Electric Cars
Exports: The Exports of auto components grew to USD 5.2 billion from USD
3.4 billion in 2009-10. Europe accounted for 36% of exports followed by Asia
and North America at 28% and 23% respectively. Although the proportion of
exports to Europe declined from 40% last year to 36%, however in absolute
terms the exports grew by 46%. Exports to North America and Asia grew by
65% and 48% respectively. With exports to North America, Europe Asia and
other parts of the world are improving, a full recovery of exports are expected
to gain strength in 2011-12.

Imports: With growth in the domestic market, imports of auto components also
grew by 30% to USD 8.5 billion from USD 6.5 billion in 2009-10; almost 85%
of the imports were accounted for by the OEMs, the rest 15% by the
aftermarket. Asia and Europe contributed to over 56% and over 35% of the
imports respectively. Within Asia, China, South Korea and Thailand
contributed to the maximum imports to India while from Europe the key
contributors were Germany, Italy and Czech Republic. The quantum of imports
has also increased due to several FTAs and other trade agreements signed by
the Government.
Capacity Addition: The auto component industry added capacity in the range of
USD 2 -2.25 billion in 2010-11 in several green-field as well as expansion
projects. The cumulative investment (gross-block) in the auto component
sector in India over the last five years stood at over USD 6.5 billion. The
industry is expected to add at least another similar number in capacity addition
2011-12.
Potential / opportunities:

There is a huge potential in the automobile in Karnataka. The component

industry caters to OEMs (all kinds of automobiles such as trucks, cars, SUVs,
LCVs, buses, two-wheelers, and tractors) and exports.
With major international OEMs having manufacturing facilities in Karnataka,

supply to them from within the country and this region in particular, has given
the sector a huge impetus. Components are also being supplied across India to
other OEMs from Karnataka. There is a potential to get into the global supply
chain of international OEMs and a subsequent direct export to the after market
and other OEMs globally.
Sl.No Sector No. of Investment Employment

Units in Rs. Cr. in Numbers
Established
1. Small 93,845 3008.78 4,44,259
Scale
Industries
2. Medium 194 2499.96 45,703
Scale
Industries
3. Large & 21 8682.62 13,331
Mega
Industries

CHAPTER-III
COMPANY PROFILE

Company Name:DIVGI INDUSTRIES PRIVATE LIMITED
Registration no.: MY-NK-255
Founder: late shree R.N. Divgi
Address: Divgi industry
Sahyadri colony
Sirsi (U.K)-581902
Status: Domestic Company
Nature of business: Ancillary unit of manufacturing spare parts
Type of industry: medium scale industry
Total area: 27 acres
Building area: 1000 meters
Directors:Mr. Jitendra .B. Divgi
Mr.Hirendra .B. Divgi
Mr. Bharat.B. Divgi
Total no. of workers: 92
Total no. of labors: 68

Assets of company:
1. Tools
2. Mobile/ telephone
3. Machinery
4. Electrical fitting
5. Computer
6. Furniture
7. Air compressor
8. Camera
9. Fax machine
10.Xerox machine
Total type of machinery: 26
Total no of machinery: 54
Average job doing per day:5000 jobs
Water used per day: 2000 liters
Coolant oil used per month: 50 liters
Fuel (diesel) per month: 100 liters

Infrastructure:
The company has acquires building and machinery on an annual

lease from DWPL. It has vast area with 27 acres of land in which
the built up area is 6501 square meters.
The company has acquired infrastructure resources as bellow:
1. Adequate building and amenities.

2. Manufacturing and measuring equipment necessary to relies and
supply
3. Conforming product.
4. The maintenances of machines is conducted through
preventive and
5. Predictive maintenance.
6. Support services such as an adequate communication and
transport facilities
7. Are available.
8. During management review meet ,realization plain , the need of
additional infrastructure requirement as necessary are discussed and
Further actionsare taken.

Organization chart of DIPL
Managing director
Assistant manager
MR HR Purchase Account Store MDT

department department department department department
Assis
QA head
tanc
Cell supervisor e
Cell Operator Helper

superviso
r
Maintenance
Assistance

History of the industry
It was corporate in the year 2000 but its commercial transact was started in the
year April 2003 by acquiring assets like building, plant and machinery from
Divgi Metal Wares Pvt. Ltd. It is certified with ISO/TS-16949 quality system in
the year 2005.
Nature of business
DIPL is an ISO/TS-16949 quality certificate company since 4th oct.2005. it is

registered under registration of companies at Bangalore. Their main banker is
Indian overseas bank.DIVGI WARNER PRIVATE LIMITED is the main
customer of DIVGI INDUSTRIES PRIVATE LIMITED. The Business carried
on by a company is manufacturing of components required for assembly of
transfer case and auto locking hubs.
Brief history of the company
1995: JV formation between divgi metal wares,India and borg Warner torq
transfer system, USA established in pune.
1997: first transfer case developed for TATA motors.
1998: transfer case developed for Mahindra; new production facility at sirsi.
1999: commenced exports with the automatic locking Hub for US after
markets.
2000: pune plant archives QS 9000 certification.
2001: transfer case development for Chinese OEM’s.
2002: sirsi plant archives QS 9000 certification

2003: commenced business with Borg warner, senesce
2004: increased value added sourcing initiative from India to Borg Warner
locations takes off.
2005: both facilitiesachieve TS/16949 CERTIFICATION transfer case proto

type successfully validated for ford Mazda business in Thailand beginning
2006.
2007: improve the products and production different ranges of products.
2008: the company had applied for the certification of EMS (environment
management system) 1400 and healthy safty 18000.
2009: won chairman’s products innovation award.
2010: Add 2 nos of New CNC Machine in Machine shop.
2011: Best Supplier Award.
2012: Synchro Product Developed.
VISION:
To be catalytic and innovative organization in the society that supplies

goods and services that are of superior value to those who use them,
create jobs that provide meaning for those who do them and offer our
talents and wealth to help and reward all who invest in us their time,
money and trust.

MISSION:
DIPL is to assist their customer seek new frontiers of value for the
continuously evolving needs of a globalization, market place in so
doing ,they seek to bring unique distinctive and superior value to those
who use their production and services. They seek to provide their
customers a continuous source of innovation by anticipating change and
shaping it to our purpose.
QUALITY POLICY:
At DIVGI they endeavor to perceive excellence in all spares of

their business activity through a process of continuous improvement
they see world class quality in their products and services to
consistently meet or exceed their customers’ expectations and
achieve leadership in the market they serve. They committed to a
high standard of motivation competency and innovation in their
people who they believe on essential to the pursuit of excellence.
GOALS:
To become India’s permanent and preferred technology increate based

solution provide in automotive transmission and power train application
for on and off highway usage to achieve world class standard in all
spares of their business activities.
OBJECTIVES:

1. To manufacture, process, treat, buy, sell, import, export, exchange

after improve manipulate report.
2. To carry on the business of engineers, contractors, builders,
filters, founders, wire drawers etc…
3. To own, run, manage and carry on the business of workshop.
4. To carry on the business as technical advisers, consultants for any
other person or person interned in or carrying or any of the business,
as similar to or connected with the objects of the company for
such terms and conditions as are beneficial to the company.
ORGANISATIONAL PURPOSE:
1. To pursue excellence in all spheres of our business activity through a

process of continual improvement.
2. To produce detect and hassle free quality products and services to meet
or exceed expectations.
3. To attain market leadership.
4. Commitment of high standards of motivation and
5. Competency that is essential to the pursuit of excellence.
PRODUCT PROFILE

The company manufactures mainly the following spare parts of automobile

industries.
1. 4 W D technology and products.

2. Manual transmission technology and products.
3. Synchronizer technology and products.
The company also manufactures the spare components required by a transfer

case. The raw-materials required to manufacture these components are procured
from Bhosari, Pune.
Transfer Case:
They are used in 4*4 vehicles. It includes several items
Made up of steel.
Shafts:
1. Upper output shaft

2. Lower output shaft
Yokes:
a. They are classified as single chorden and double chorden,

b. Those are supplied to Mahindra &Tata Motors. Also
c. Exported to Borg Warner Torq Transfer Systems.

Front Adaptor:
It is an item made up of aluminum.
Gear:
These items include:
1. San gear 4426/1350

2. Sprocket drive
3. Sprocket driven
4. Pinion Gear
5. 1st 2nd 3rd 4th gear
6. CF - 006
7. NGT – 530
Functions of Transfer Case-
1. To convert 2*2 drive into 4*4 drive.

2. To amplify Torque.
Flange Cell:
In this cell, different kinds of flanges are manufacturing using CNC

machines. Here some of those are companion flange 006, companion flange 030
etc…….
In this cell, there are different machines those are CNC turning
machine, broaching machine, drilling machine, punching machine etc…The
proper coolants are always used for reducing the tool wear because in the
cutting zone, high temperature is producing.

Shaft Cell:
In this cell, manufacturing shaft which is used in the transfer case. In

the shaft cell, we saw different types machines, those are CNC machines, VM
machine, deep hole drilling machine, conventional lathe, thread rolling machine
etc…..
PROBLEMS:
 Of set problems
 Tool breaking
 Power problem
 Rough surface
 Usage of unsuitable oils and coolants
 Improper holding of the job
 Fricton and tool wear.

Shafts:
Gear:

Companion Flange:
Yokes:

CHAPTER-IV
Title of the study:- “A Study on organization and management with

reference to Divgi Industries Private Ltd. SIRSI.”
DEPARTMENTAL STUDY OF DIVGI INDUSTRIES
A department refers to the process of grouping activities into

departments. Division of labor creates specialists who need coordination. This
coordination is facilitated by grouping specialists together in departments .A
department is a part of a larger organization with a specific responsibility. For
the division of organizations into departments, see departmentalization.
The term "department", in other contexts, means an

administrative sub-division of a larger organization. The Department of
Organization's research and teaching are based on the managerial and
organizational processes in private, public, voluntary and other organizations.
Our goal is to create and disseminate new knowledge about organizational

processes that are applicable and that may inspire business executives and
others to work with new organizational structures.
1. Purchase department
2. Stores department
3. Manufacturing department
4. Human resource department
5. Quality department
6. Computer aided design department
7. Finance department
8. Maintenance department

PURCHASE DEPARTMENT:
Purchase function covers all activities related to procurement of

raw materials and other materials of the company. The purchase
function is to interact with planning, stores, production,and quality
control and finance department whenever necessary. In charge of
purchase department is responsible for all the activities related to
the procurement of materials in the company.
Functions:
1. Evaluate the suppliers

2. Prepare a list of evaluated suppliers who meet the
company requirements and update it if the new supplier
is added.
3. Receives the purchase requisition from the stores.
4. Identify the supplier, place the enquiry and receive the
quotation from approved suppliers.
5. For purchases bellow Rs. 500/- purchase order may not
be realized. Only if the purchases exceed this amount
P.O is made.
6. In case urgency /emergency material may be purchased
on verbal approval from the C.E.O / director.
7. Prepare and place the purchase order to supplier.
8. Monitor on timely delivery of the materials.
9. Ensure the quantity of materials received;check the
verifications activity to accept the materials.
10.Release the payment to the suppliers.

11.Carry out the supplier rating quarterly to the suppliers.

12.Suggest the supplier to improve in case, supplier rating
does not match to the requirement.
13.In case if customer specifies the supplier, the
department procures the material from customer approved
source only.
14.For any materials purchased in an emergency purchase
receipt P.O shall be made within the working days
supplier rating is done once in three months.
15.Prepare the list of supplier who meets the company requirement.
16.Receive the purchase requirement from the store.
17.Identify the supplier place the enquiry& received the qualitative item
from the approved supplier Prepare& plan the purchase order to the
supplier
18.Monitor timely delivery of the materials.
19.Ensure the quality of material
20.Release to the payment to the supplier.
Criteria for selection of materials:
1. Easy availability
2. Prompt delivery
3. Competitive price
4. Consistent quality.
STORES DEPARTMENT:

The main function of stores department is to consumables,

accessories and issues the same to the production
department on the receipts of requirement slip. The stores
department follows FIFO system. This business process procures
raw material / products / consumables as per procurement plan based on
production requirement schedule. They also procure indirect parts /
products / consumables or services needed for all other processes. This
business process receives and preserves the raw material till it is
consumed during manufacturing.
STRUCTURE OF STORES DEPARTMENT:
Managing director
MR
Stores in charge
Assistants
The two types of items under the stores department are:

a. Billable items
b. Non- billable items
a. Billable items
Billable items are those, which are procured from outside sources.
They include machine spares, gear parts, tool – holders, cutting
tools, grinding mills and consumables.
b. Non- billable items

Non- billable items are the items, which are procured Bhosari
(Pune). They include forging (shaft, flange), gear blanks, sun
gear, ring gear, hub reduction, sprocket drive, sprocket driven,
hub sleeve etc.
The Key performance indicator of stores departments is Material Yield

stores are divided into:
1. Forgings
2. Consumables
FORGINGS:
In case of forgings following procedure is to be followed:
On the receipt of raw materials from DWPL, material is placed

in proper bin and confirms the received quality against
delivery chalan.Enter the received quantity GRR (goods received
register) and stock register. If any short or excess material is found,
then it is mentioned in GRR and inform to the customer
immediately.

Measure the forging weight as per sampling page. Enter into GRR.
Issue bin card and ensure bin cards are attached to the respective
bins.
Ensure the forgings are properly stored in bins. If any empty bins
are not available, place the forgings on card board sheets, cover
plastic and attached the bin card properly.
Take clearance from the quality department for incoming goods

inspection. Issue forgings / raw materials for production by strictly following
FIFO method.
When incoming forgings are released for urgent production, they

are positively identified and recorded to permit recall in the event
of nonconformance to specified requirements.
On consumption of GRR prepare delivery chalan.
Ensure materials being dispatched to the customers.
Prepare a consolidated statement of the total quantities dispatched,

total rejection and total forgings defect quantities and then submit
a copy to the accounts department.
Monitor and measure the materials yield % at the end of every

month. Stock and product verification is conducted once in three
months.Maintains the department, record properly.
CONSUMABLES:

For any requirements for concerned department, conforms inventory,

counter sign purchase receipt if material is to be purchased. On
the receipt of consumables make GRR and then make the
clearance. Consumables are kept in storage area under lock and
key.
Machinery spares are stored in steel cupboards under lock and

key with proper identification.
MANUFACTURING DEPARTMENT:

This business process manufactures product as per production orders

released by planning. They follow the entire standard, i.e. quality and process
to realize the products. They assist manufacturing engineering to establish
the new manufacturing process. They develop various job/ work instructions
to guide operations to perform better and better. They plan and accomplish
manufacturing of products so that customer requirements are fulfilled. This
business process ensures maintenance of manufacturing fixtures and tooling
required for product realization.
DIPL manufactures different types of yokes, flanges, shafts

and sun gears for gear box assembly.The different processes
undertaken for manufacturing. This business process receives customer
schedule details from marketing considering inventories at raw material,
work-in-progress and finished goods, they prepare production plan is a base
for manufacturing process. This business process also controls outsourcing of
products/ processes. This process strives for 100% on time delivery
performance of company.
Responsibilities and Authorities of Production, Planning and

control:
1. Prepare dispatch plans / schedules based on scheduled requirements.
2. To co-operate with Bhosari ( Pune ) for the following:
a) Raw materials
b) Tooling / insert s
c) Mobilizing empty trays for material handling
d) Preparing dispatch schedule
Raw materials

Receive raw materials from
the customer
Process flow chart

ROUGH TURN ROUGH TURN FINISH

RECEIVE
1ST SIDE 2ND SIDE TURN 1ST
FORGINGS
OPERATION SIDE
OPERATIO
N
OPERATION OPERATION OPERATION FINISH

HOBBING “D” BROACHING TURN 2ND
PUNCHING SIDE
OPERATIO
N
OPERATION OPERATION OPERATION FINAL

EXTERNAL INSPECTIO
DEBURRING SHAVING
TEETH N
DISPATCH TO
DWPL SIRSI
CONSUMABLES
Receive consumables from

the supplier
CLEARED GRR TOTAL

ACCOUNT SUBMIT TO THE
ACCOUNT DEPT
Prepare GRR ENTER IN THE
GRR REGISTERANDSTOCK
REGISTER RESPECTIVELV
SUBMIT REGISTRATION
LETTER TO THE PURCHASE
RECEIVE MATERIAL TO BE DEPT
KEPT IN DENTIFIED PLACE
WITH PROPER PRESERVATION
MAINTAIN STOCK PROPERLY

REGISTER LETTER TO BE
ISSUE THE MATERIALS RECEIVED FOR THE
AGAINST ISSUE SLIP REQUIREMENT BY THE DEPT
HOD
TURNING:
ROUGH TURNING:
This is an operation in which maximum materials is being

turned by using different types of cutting tools, maintaining the
stock 0.5 -0.7 MM materials at all surfaces for finish turning.
FINISH TURNING:
In this operation finish turning of the work piece is being

carried out by using different types of cutting tools. Required
surface finish, chamfers, grooves are generated in this process.
BROUCHING:
It is an operation in which the required spines are being

generated by using a special tool called broach. In this operation
broach is in the work piece with the help of byduaulic pressure
at required feed rate.
HOBBING:
Gear teeth are generated in this operation by using

special tool called hobbing. In this process the cutter rotates at one
along with the work piece at advance into the cutter at required
depth and then the cutter moves upward or downward as per the
setting.
SHAVING:

Shaving is an operation in which gear teethes is done by,

removing 0.1 – 0.22MM depth of cut by using a tool called shaving
cutter. In this operation the cutter rotates at one axis and work
piece is advanced into the cutter.
MILLING:
Milling is an operation in which forms, slots, key words are

generated by using special tool called milling cutter. In this
operation cutter rotates at one axis and the work piece advances
towards the cutter. Coolant oil is used to eliminate the heat
generated during turning operations. On an average 5000 jobs are
done per day.Being pushed Issue consumables on receiving materials
receipt per day.Maintains inventory level properly. Inventory management
system is good. In the history of DIPL work stoppage has not
taken place due to raw materials storage.
Responsibility and authority of manufacturing
1. To take the work in progress statement for production material with in

the plant
2. To negotiate and finalize rate for scrap and to take approval from
operation.
3. Prepare dispatch plan/ schedules based on scheduled requirements.
4. Organizing dispatch co ordination with individual engineer for
component for final inspection and further dispatch.
HUMAN RESOURCE DEPARTMENT:

The principle component of an organization is its hr or people at

work. It is which is of paramount importance in the success of
an organization.
It is the phase of management which deals with the effective

control and use of man power as distinguish from other sources
of power. This department is managed by the HRD of the
department. He is responsible for the over all functioning of the
department.
OBJECTIVES
1. To recruit the candidate to the organization

2. To select best among them
3. To maintain all the records by employees related to attainder leave,
training
4. To maintain a proper infraction between the employees
5. To check the employees performance of the end of the working
year
6. To apprise the performance of the employees
7. To motivate the employees to get maximum output
8. To give the proper training to the employee.
Induction Training Programme
At Divgi Warner Private Limited four days induction training

programme is conducted for all new employees. All new employees
must undergo an induction training programme. The purpose of

induction training programme is to ensure that the new employee

gets familiar with the company’s day -to-day operations.
Cleanliness of Premises:
HOD (HR) ensures that premises are neat & clean. Any material
available is neatly placed & duly identified. Any repairs to building
& infrastructure required to fulfill product & manufacturing process
needs are timely carried out. Any material is promptly removed.
Every month, any deterioration in material is brought to notice of
CEO for further actions.
Functions:
1. To organize necessary training programs.

2. Assist HOD for human resource acquisition.
3. Maintain all statutory requirements on time, as given out in
Gazette notification and government orders from time to
time. This also involves compliance and renewal of various
licenses under Factories Act,
4. Minimum Wages Act, Payment of Wages Act, Workman
Compensation Act, Gravity Act etc…..
5. Maintain records of employees including attendance, leave
and training records.
6. To collect training needs through skill matrix from various
functions and prepare training plan.
7. Up keep of premises.
8. Arranging and up keeping of company vehicles.

9. Providing and maintaining a conducive atmosphere for

work and enhances performance of employees.
10.Conduct programs which helps in motivating the employees.
Induction training program:
At DIPL 2 Days induction training program is to ensure that

the new employee gets familiar with day to day operations.
Employee training:
1. Basic job training.

2. General training
3. Further training.
Basic job training:
All employees will be trained in the operation of machinery

and equipment specific to their function. Before using such
machines or equipments, employees are to be informed of the
hazard that is likely to occur.
General training:
All employees will be briefed and received training in the

following:
1. Accident prevention in the operation of machinery and

equipment.
2. Accident reporting.
3. Good house keeping.

4. Company safe
5. Responsibilities under the current safety, health and
environment legislation.
Further training:
1. On side emergency plan

2. Emergency skill.
3. Safety, health and environment audit.
Recruitment policy in DIPL:
1. Need based.
2. Management view regarding further requirement.
Need based recruitment:
It is done by advertising in the news paper or by selecting

candidates on the basis merit if he /she are known to any
DIPL’S employees. Selecting candidates is based on their
experience, qualification and performance in the interview. Candidates
are interviewed by the executive based on the qualification of the
candidate.
Management decisions:
Candidates are also recruited by management decision. Deceased

employees dependent are also recruited as a special case mainly
keeping in mind the future developments.

While recruitment for the post of operator, cleaner, driver, and

his experience, age and physical fitness for the post is considered.
Management representative:
1. Maintained in accordance with ISOL TS 16949 requirements.

2. Authorized for issue and withdrawal of quality system
documents.
3. Conducting management reviews.
4. To maintain the departmental record.
Customer representative:
1. For interacting with customer on special characteristics and

communicating the details of interaction to the concerned
personal of DIPL is also responsible to collect the customers
engineering drawings.
2. Interaction with customer for delivery schedules and on time
delivery of products to the customer.
3. Resolving customer results.
The company is achieving through key performance indicators

(KPI’S). Top management has defined measurable KPI’S for each
business process which are also quality objectives for the
company. Each business process
Owner utilizes multi disciplinary action approach to measure and

analyze the data and information to arrive at a action plan
which is implemented and reviewed every month.

This monthly review also serves as one activity to improve and

maintain internal communication. These key performance indicators
are for overall functioning of business processes. Quality objectives
are displayed within the organization through KPI’S.
Selection process on DIPL
It is a long process in DIPL commencing from the preliminary interview of the

applicant & ends with the contract of employment selection in DIPL is
centralized & is handled by the personnel department
Table 4.1
NO OF EMPLOYES
SL.NO EMPLOYEES NO.OF PERCENT

. EMPLOYE AGE
S
1 Staff 07 07.60
2 Technical Staff 11 11.95
3 Operator 68 73.92
4 Helper 06 06.53
Total 92 100.00

Total
80 73.92
60
40
20 6.53 Total
7.6 11.95
0
helper
operator
staff
technical
staff
Interpretation:-
This diagram indicates that no. of employees working in DIPL. It can be

divided into 4 types they are staff (7), tech. staff (11), operators (68) and
helpers (6). Operators are more than other staff.
Table 4.2
LABOUR CLASSIFICATION
LABOUR CLASSIFICATION NO. OF LABOUR PERCENTAGE
Skilled labor 20 29.41
Un skilled labour 11 16.17
Semi skilled labour 37 54.42

Total 68
Total
60 54.42
50
40
29.41
30
20 Total
16.17
10
0
semi-skilled Total
skilled
un skilled
Interpretation:-
In DIPL, the labours are classified on the basis of their

skills. They are skilled, unskilled and semi-skilled. The semi-skilled
labours are more as compare to skilled and unskilled labours.
Table 4.3
SALARY ALLOWNCE
EMPLOYEES SALARY PER MONTH SALARY PER DAYS

IN RS.
Highly skilled 5770 221.92
Skilled 5268 202.61
Semi- skilled 5110 196.53

Un skilled 5050 194.23
Table 4.4
Classification of labour on the basis of permanent, trainees, contract base:
LABORS NO. OF LABORS PERCENTAGE
Permanent 35 38.04
Trainees 49 53.26
Contract base 08 8.70
TOTAL 92 100.00

Total
8.7
53.26 38.04 contract base

permanent
trainees
INTERPRETATION:-
This chart shows that no. Of labours working in DIPL. The DIPL is
recruiting the workers on the basis of contract base. This also provides on
the job training to the trainees.
Table 4.5
LEAVE TABLE
Earned leave 15 days for

year
Causal leave 10 days per

year
Sick leave 5 days per

year

Interpretation:-
This table indicates that the leave of the workers in DIPL. Under this table the
employees earned 15 days of leave per year. Causal leaves are 10 days per
year, sick leave are 5 days per year.
Performance Appraisal
Once the employee is confirmed he shall be considered for an

annual appraisal every year effective 1st of January. Appraisal will be
based on his overall performance including attendance; sincerity to meet
his pre agreed key performance areas & objectives. At the time of
appraisal employee is required to give certain KPA’s (Key performance
areas) for next year with specific targets. It is expected the employee
shall monitor his KPA’s. Depending on performance of KPA’s
employee will be considered for annual increments.
Fringe benefits
1. DIPL provides perquisites like canteen, lunch rooms, medical

services etc
2. Premium payment
3. Payment for time not worker. Holidays, vacations period & rest
period etc
4. Miscellaneous benefits
5. Provident fund of 12% ( basic + DA) repaid
6. Bonus is paid according to bonus act 1965 usually 8.33% pa is
paid

FINANCE DEPARTMENT:
Finance is an essential component of the business to maintain

its operations effectively. This department is concerned with day
to day activities like purchases, sales, salary etc and proper
management and maintenance of accounts of concerned year.
BANKER OF THE COMPANY
1. Indian overseas bank

2. Sirsi urban souhard co-operative bank
MAIN SOURCE
1. Job work
2. Sale of scrap
Functions:
1. Day to day bank transactions

2. Recovery
3. Bills passing and payments
4. Recovering all transactions in books of accounts.
5. Preparation of cash of low statement budget.
6. Providing various types of management information system
reports required by management from time to time.
7. Carryout auditing.
8. Cash handling –petty cash handlings
9. Bank transactions – cash withdrawals, maintaining record of bank
balance, details of check payments.

10.Preparation of statements for funds requirements of the month including

statutory and supplier payments.
11.Recording of all the transactions in the books of accounts
12.Preparation of cash flow statement budget.
DIPL maintaining books of accounts:

1. Purchase register
2. Sales register
3. Bank register
4. Journal register
5. Cash book
6. Day book
7. Ledger and vouchers
Implementation of annual budget
Every year in 1st week of January each department has to provide

their debtors of budget to account department. Finance department put up all
department annual budgets to managing directors for review and final approval
is taken.
HR department budget and expenses following heads;
1. Training
2. Housekeeping
3. Vehicle maintenance
4. Vehicle fuel
5. Staff welfare
6. Telecommunication

7. Other expenses
Gross turnover 18, 468, 914, 48
Net profit 3,330, 094, 60
Secured loans 823, 296, 00
Unsecured loans 6192,711.00
Authorized capital
100000 equity shares of rupees 100 each 1, 00, 00,000
Issued, subscribed & paid up
49,530 equity shares of rupees 100 each 49,53,0000
MAINTAINANCE DEPARTMENT:

This department is vital to all other department as it ensure

smooth functioning of the process. The company has a very good
policy in hand for maintenance of machinery. Records are maintained
with raga to every machinery that is put to use .Obsolete lagging
machineries are replaced properly.
The Maintenance Department is concerned with the Maintenance of

machines utilities like air compressor, diesel generator set, and IT
equipments like computer fax machines, scanner and printers.
Organization chart of maintenance department
Assistant manager
Engineer -1 Engineer-2
Supervisor Supervisor
Filter contract
Contract engineer Contract engineer
There are three type of Maintenance:

a. Breakdown Maintenance
b. Preventive Maintenance
c. Predictive Maintenance
a). Breakdown Maintenance:
In the case of breakdown maintenance the machines are attended only

when the process has stopped or after the breakdown.
b). Preventive Maintenance
In the case of preventive maintenance machines are maintained in such

a way to prevent occurrence by regular inspection, cleaning, greasing etc, as
the case may be.
c). Predictive Maintenance
Predictive Maintenance is where the life of each spare part is

determined and at the end of the period spare part is replaced with new one
whether it is damaged or not.
Maintenance schedule are prepared on monthly, quarterly, semi-

quarterly and yearly basis.
Functions of Maintenance Department:

1. To identify key process equipments

2. To rectify day- to –day breakdown of the equipments
3. To plan and procure the spare parts equipments Maintenance
4. To maintain and update all records related to breakdown/ calibration/
installation and commissioning / retrofitting/ spare parts etc.
5. Provide adequate support to organization by keeping the equipments
under proper working condition, to support qualitative and cost effective
manufacturing of products.
6. Design and implement an effective preventive and predictive
maintenance system so as to keep high uptime for equipment
7. Recondition old equipments to effectively maintain machine capability
and retrofit the new technology to enable more effective capital
deployment for minimizing unscheduled downtime and maintain
machine capability.
Day to day maintenance of machinery.
Purchasing tools, accessories, lubricating oil etc required for

maintenance.
Keep the machinery in good conditions on a continuous basis.
Provide repairs for machinery.
QUALITY SYSTEM DEPARTMENT

The aim of every organization is to produce best quality product.

To achieve this goal it takes many measures before the production
starts and continues till it reaches the customer. Quality control is an
on going process.
Organization system of quality system department
Manager
MR
Head–quality system
Senior engineer Q.A co coordinator

Q.M.S
Functions:
1. Calibrates the monitoring and measuring devices at different

frequencies.
2. Records the details of calibration.
3. Complies the calibration certificate and protects them.
4. Errors of the instrument are made known to the users.
5. Issue instruments and gauges to the users.

6. Details of setup approval are recorded.

7. Check the coolant concentration.
8. Verifies the incoming / in process /finished items against control
plans.
9. Records the details of inspection report.
10.Carryout dock audit.
11.Carryout the measurement system.
12.Record the details of non conforming products.
13.Defines the method accepting the incoming products.
14.Is responsible and authorized to prepare the quality plan
for finished products.
15.Is responsible and authorized to approve and release the
finished products for dispatch to the customer. Responsibility
of quality assurance offer:
The quality assurance department is especially for financial

approval. It is responsible for verification of products. After the
approval from this department only the final products are supplied
to customers. The company is certified with ISO / TS 16949 quality
system guidelines and improves its effectiveness.
Quality assurance inspectors:
1. For maintaining quality records

2. Is responsible for incoming / in process / final inspection as per
control plans.
Why go for TS-16949?

TS-16949 is a license for doing business with the customers and

implementation of TS-16949 develops a common understating of quality
related expectations, methods and practices with the customers. The common
understanding and assurance it brings leads to:
1. Simplifying many different detailed decisions and work methods in

managing and continually improving quality
2. Motivating and empowering people to take action to improve
effectiveness and efficiency of their work processes in disciplined way.
3. Co-coordinating the actions of different people in an efficient way to
give customers a defect and hassle free experience.
TS-16949 standard belief:
TS-16949 is a quality management system that helps us continually improve

the effectiveness and efficiency of our processes for products and services to
our customers by emphasizing.
1. Defect prevention
2. Reduction in variation and waste in our supply chain.
It consists of four Quality Management Systems:
a) ISO-9001
b) ISO-9002
c) ISO-9003
d) ISO-9004

ISO-9001 is given to those companies that will do designing as well as

manufacturing, marketing and service.
ISO-9002 is given to those companies that will do only manufacturing,

marketing and service.
ISO-9003 is given to those companies for servicing, calibration and testing.
ISO-9004 is given only for service. It is vocabulary (guidelines for above

systems).
After 1994 a new system was incorporated QS-9000. It consists of two

sections.
Section I includes basic segments of ISO series and
Section II is customer specific requirements
QS- 9000 is basically formed the big 3’s viz., General Motors, Chrysler,
Ford and other manufactures.
Later in 2000 they formed TS-16949 and the latest updating is of version TS-
16949, 2002 the fund
Metals for this system is ISO- 9001, 2000 and ISO-9004, 2000 metals for this
system is ISO- 9001, 2000 and ISO-9004, 2000
COMPUTER ADDED DESIGN IN DIPL

In DIPL sirsi there is a separate selection for computer aided design(CAD) here
the computer is use to designing and manufacture a product where product
specification are refined by continuous improvement in successive stage based
on designer’s experience, computers, sketches and drawings.
USE OF CAD IN DIPL
1. Computational and graphical software to enhance design productivity.

2. The geometry of the component can be graphically displayed and
manipulated on video monitions.
3. Alternative designs can be worked out and evaluated fast.
4. Some of the time and expenses of physical mock-ups, models and proto
types are eliminated.
5. By accessing the data base, an already existing design may be found
eliminating duplicate design efforts.
6. Once a design is found acceptable, it is started in the data base and can be
transmitted electronically to manufacturing, engineering, purchasing
sections.
Reason for limited of marketing area
1. With in the group of Divgi Warner
2. Under lease.
3. Building and machinery on lease.
Reason for limited profit
1. Limited marketing area. 2.It is a sister concern unit
MANAGEMENT STUDY OF DIPL

A person who holds a management position inside an organization

is required to think strategically and conceptually in order to achieve
organizational goals. This lesson will describe the four functions of
management and how they relate to organizational success.
Top Management:
The BOARD of the company is Manager for the quality management system.
He is responsible for the over all growth of the company, where as day
operation are looked upon by plant head.
A team of top management assesses these skills

through a competency matrix & training needs are recommended by the
respective section heads in order to improve the weak areas. For top
management, wherever necessary the company employs outside agencies to
assess the skills & competency levels.
. He is overall overseeing the overall growth of the company whereas day –

to – day operations are looked upon by Plant Head.
The staff of DIPL – Top, middle and lower management have nurtured
following qualification thereby being able to meet the expectations of their
valuable customers.
Quality: DIPL staff maintains professional attitude among all

employees.
Line & Staff Relationship:

Line refers to those positions of an organization, which have
responsibility, authority and is accountable for accomplishment of primary

objectives. The relationship existing between two managers due to

delegations of authority and responsibility and giving or receiving
instructions or orders is called line relationship. Line authority represents
uninterrupted series of authority and responsibility delegating down the
management hierarchy.
DIPL has adopted Line & Staff organizational structure that offers
individual the opportunity to meaningfully learn & participate across diverse
business processes.
The Managing Director of this company is CEO for the Quality

Management System. He is overall in-charge overseeing the overall growth
of the company, whereas plant heads look after day -to -day activities.
The business process heads, as shown in overall organization chart, are

treated as top management to establish, implement, maintain & continually
improve effectiveness of Quality management to establish, implement,
maintain & continually improve effectiveness of Quality Management
System. The Manager follows the Board. The team leaders of various
departments report to the Manager.
FUNCTIONS OF A MANAGEMENT

Management performs different functions. They are mentioned are as

follows.
PLANNING
Planning is one of the functions which determine well in advance what is

to be done. It is a purpose of deciding business objectives and preparing the
methods of attaining those objectives. Planning is an intellectual process.
Engineering department is responsible for designing the product / part as per

the customer requirement. The customer requirements are translated into the
product realization plan through APQP (Advanced Product Quality Planning)
steps. Product leader convinces multi disciplinary actions consisting of
various business processes who act as a board of decisions for design activity
planning. This business process ensures that company confirms to all the
agreed customer requirements.
ORGANIZING
Organization refers to structure which result from identifying and

grouping of work, defining and delegating responsibility and authority and
establishing relationships.
Organization Purpose:
1. To pursue excellence in all spheres of our business activity through a

process of continual improvement
2. To produce detect – and hassle free quality products & services to meet
or exceed customer expectations.
3. To attain leadership in the market.

4. Commitment to high standards of motivation & competency that is

essential to the persuit of excellence.
STAFFING
Staffing is an important function of management and a part of the

organizing function. The manger discovers the right person for each job in
staffing. Staffing fixes manager there is enough man power available to fill the
various positions in the staffing also involves introductions of suitable systems
of compensations training, promotion and retirement of subordinates working in
the office.
The people / human resource management processes use to

develop mangers socialization processes, ways of shaping basic values of
management cadre, ways of introducing young recruits to the Co., ways of
helping to manage the career of employees.
DIRECTING
Directing refers to giving explanation by the manager to the staff

regarding what they have to do and help to do it the best of their ability. It
involves three sub functions, namely, communication, leadership and
motivation.
Communication is the process of passing information from one person

to another. Leader is the process of which manager guides and influences the
work of his subordinates. Motivation means arousing a desire in the minds of
workers to give their best to the enterprise. It is an act of inspiring workers. As
directing is connected with influencing, guiding, supervising and motivating the
subordinates in their jobs, it is an important function of manager.

CO-ORDINATING
In any organization, it is common that different people have different

ideas regarding attainment of goals. Hence, there is a need for co-ordination of
activities. Thus co-ordination is the balancing and keeping the team together by
allocating seeable works to the members and see that the members with
harmony performs the works. Some of the important requisites for effective co-
ordination are principles, direct contact, early start, continuity, dynamism, clear
cut objectives, clear definition of authority and responsibility, simplified
organization, effective communication, leadership and supervision.
Basis for specialization & coordination influenced primarily

by strategy & by organization size and diversity.
CONTROLLING
In order to ensure that the work is done as per the plans lay down.
Controlling is very much important. Controlling functions of management
involves three elements.
I) Establishing standard of performance for work.

II) Comparing the current performance with the established standards.
III) Correcting those works which are against those standards.
This business process receives customer schedule details from

marketing considering inventories at raw material, work-in-progress and
finished goods, they prepare production plan is a base for manufacturing
process. This business process also controls outsourcing of products/
processes. This process strives for 100% on time delivery performance of
company.

Responsibilities and Authorities of control:

1. Prepare dispatch plans / schedules based on scheduled requirements.
2. To-corporate with Bhosari ( Pune ) for the following:
a. Raw materials
b. Tooling / insert s
c. Mobilizing empty trays for material handling
d. Preparing dispatch schedule

CHAPTER-V
SUMMARY, FINDINGS AND SUGGESTION
SUMMARY
Industrial organization is the field of economics that builds on the theory of the
firm in examining the structure of, and boundaries between, firms and markets.
The subject has been described as concerned with markets that "cannot easily
be analyzed using the standard textbook competitive model." Industrial
organization adds to the perfectly competitive model real-world frictions such
as transaction costs, limited information, and barriers to entry of new firms that
may be associated with imperfect competition. It analyzes determinants of firm
and market organization and behavior as between competition and monopoly,
including from government actions.
There are different approaches to the subject. One is descriptive in providing an

overview of industrial organization, such as measures of competition and the
size-concentration of firms in an industry. A second uses microeconomic
models to explain internal firm organization and market strategy. As to strategic
firm interaction, non-cooperative game theory has become the standard
unifying method of analysis. A third aspect is oriented to public policy as to
economic regulation and antitrust law.
Methodology of Data Collection

Research methodology is a systematic way for solving any research problem.

It’s a science of analyzing how research is done scientifically. It studies the
various steps that are generally adopted by a researcher in studying the
research problem.
Sources of Data:
There are 2 types of data:
1. Primary Data
2. Secondary Data
Primary Data
The primary data are those which are collected fresh for the first time
and thus happen to be original in character. The primary data collection
involves the collecting of information for the first time by observation,
experimentation, and questionnaire and through interview schedule in the
original form by the researcher himself or his nominees.
Plan of action:
The primary data was collected through discussion with the manager
using the interview schedule. This data was obtained to study the latest
procedures relating to working capital management and cash management
system followed by the company.
Secondary Data

The secondary data are those which have been collected by some other
and which have been processed. Generally speaking secondary data are
information, which have been previously collected by some organization to
satisfy its own need. But the department under reference for an entirely
different reason is using it.
There are two main sources for Secondary Data:
I. Published Data: Data that is already available in books, magazines,

trade journals, newspapers, reports, prepared by research scholar etc.
II. Unpublished Data: This is not published; it can be found in
unpublished biographies, autobiographies, some governmental aspects
and private individual organizations etc.
The Secondary data used in the study are:
a. Annual Report of the company.

b. Published financial reports of the company.
c. Financial records and stores manual of the company.
d. Directors reports, auditors report and other schedules.
Objectives of the study
1. To study the organization and management of divgi industry.

2. To study the different departments of divgi industry.
3. To study the human resource of divgi industry.
SCOPE OF THE STUDY

It is very useful to the entrepreneur to under stand the nature and working of
organization and management and also to adopt innovative methods. By that to
reduce cost of production and to also to improve the quality of the product and
to get maximum benefit.
FINDINGS
1. DIPL is more conscious about there quality maintenance.

2. DIPL satisfy the requirements the ISO/TS- 16949 quality
certification.
3. DIPL is concentrating on implementation of latest technologies in its
operations.
4. There exists a healthy relationship between DIPL and DWPL.
5. DIPL make use of CNC machines largely in its production process.
6. The most employees on DIPL are young and energetic.
7. In DIPL all the employees are green same type of uniform from
operator to administrator level.
GENERAL PROBLEM OF DIPL
1. Machine variation is the main important problem in divgi industries

private limited.
2. Maintenance
3. Man power problem
4. Electricity problem
SUGGESTION

1. DIPL has to concentrate on available market, demand for automobile

component and should not limit its operation only for DWPL.
2. DIPL has to implement more upgraded technologies in its operation to
produce new varieties of auto spares and to increase existing production.
SWOT ANALYSIS
STRENGTHS OF DIPL:
DIPL are committed to customer satisfaction at all levels in the

organization. DIPL has Quality Assurance and QMS departments where in
all the queries, difficulties or any type of assistance required by customer is
taken care. The issues relating to customer complaints, resolutions, corrective
actions etc., suggestions by customers for improvement in processes /
products are discussed on weekly basis and actions are initiated to resolve the
problems.
DIPL provides total transparency in dealing with its customers and are
committed to enhance their capabilities, by providing them with latest
technological advantage and utilizing maximum capacity to meet their
requirements.
They process the knowledge and the technology that is relevant to the
products being designed, manufactured and supplied.
1. Company has On-line communication system, capable to be linked

with customer’s On-line system.
2. Line with QS-TS-16949 certification, which can achieve a good
market for its product at global level.

3. The company has adopted Continual Improvement philosophy,

which helps to achieve greater effectiveness & efficiency in all the
business processes.
4. Customer complaints are systematically handled through team –
oriented problem solving 8 – D methodology for internal as well as
external concerns.
5. There is well- designed automation & workstation near every
machine, which are operator friendly.
6. There is teamwork among the employees in the company.
7. Each process (activity) is measured for effectiveness & efficiency to
meet quality objectives. Competency to adopt new system,
implementation, practice & sustenance.
8. Most of the workforce comprises of well informed, competent
youngsters qualified with diploma or graduation in engineering.
WEAKNESS OF DIPL:
1. DIPL is situated in a remote place or area, which is far away from

metropolitan cities, and it is not connected with national or state
highways.
2. The lack of connectivity with proper roads & highways leads to the
problem of procuring inputs & delivery of outputs.
3. There is transportation problem because Sirsi is a hilly region above sea
level so there is no facility of railways, which is the faster means of
transportation than roadways.
4. The company hires employees on contract basis, which makes rigorous
training essential.

OPPORTUNITIES AT DIPL:
1. There is a scope for making final products instead of component parts

and make it available for profit & loss.
2. There is an opportunity for making future expansion in business by
going for joint ventures & tie-ups with other company’s also.
3. The company provides various employment opportunities to new
graduates & local people of Sirsi.
4. By adopting EMS – ISO 14001, the next aim of the company is to
“Deming Award” of certified by Japanese, which is given for quality
management systems.
5. The vast area of land & space of building can be effectively used for
future expansions.
THREATS OF DIPL:
1. DIPL, Sirsi mainly depends on the parent company i.e. DWPL, Sirsi
and Pune. The parent may change its base of manufacturing for
marketing its products outside India.
2. The major raw material used in the production is steel, presently there is
a huge demand for steel & there is rise in the price of steel for last few
years in India & all over the world. The rise in the input cost will reduce
the margin of the company.
3. There is always a risk of change in Government Policies.

CONCLUSION
1. In present area of business, the organization lends to satisfy the needs of

the customer more effectively than competitors in the way to achieve
high market share and long life.
2. DIPL wants to become an excellence in manufacturing of auto plant ant
at the same time if wants to reach the stages what it is dreaming of for
which the co-ordination from employees and management is necessary.

BIBLIOGRAPHY
BOOKS:-
1) Shubhra Rahul (2007) – Principles of Management- Management-

R.Chand And Company, New Delhi- P.No.36 And 95
2) Arun Kumar and N.Meenakshi – Organizational Study – Organization
Behavior – Vikas Publishing House – p.390
3) P.C. Tripathi& P.N. Reddy – Organizational Study – Principle of
Management, 3rd addition – S.Chand– p.94
4) K. Ashwatappa –(2007)- Organizational Study – Organizational
Behavior, seventh revised – Himalaya Publishing House –p.508
5) A B N Kukarni& AB Kalkundrikar – Organizational Study – Managerial
Economics – R.Chand – p.167
6) C.S.V. Murthy – Organizational Study – Entrepreneurship Development
– Himalaya Publishing House –p. 1.3
7) Jagroop Sing – Organizational Study – Entrepreneurial Development &
Small Enterprise – Kalyani Publishers – p.107
WEBSITE:-
www.google.com
www.wikipedia.com
www.divgi-warner.com

I. EQUITY AND LIABILITIES

1. Shareholder’s fund
a. Share capital 4953000.00 4953000.00
b. Reserves and surplus (4544933.17) (7875026.77)
c. Money received against share - -
warrants
- -
2.Share application money pending allotment
3. non current liabilities 7016007.50 9292881.00
a. Long term borrowings - -
b. Deferred tax liability (net) - -
c. Other long term liabilities - -
d. Other long term provisions
4. Current liabilities - -
e. short term borrowings 5167006.05 2112501.88
f. trade payables 1787946.50 1603790.00
g. other current liabilities - -
h. short term provisions
14379026.88 10087146.11
TOTAL

II. ASSETS
1. Non current assets
a. Fixed assets
i. Tangibles assets 7256851.00 5323434.00
ii. Intangibles assets
iii. Capital work in progress
iv. Intangibles assets under
development 238090.00 238090.00
b. Non current investments 14705.00 26366.00
c. Deferred tax assets (net)
d. Long term loans and advances 333846.00 287007.00
e. Other non current assets
2. Current assets
a. Current investments -
b. Inventories -
c. Trade receivables 4264301.65 3392861.67
d. Cash and cash equitant 2271233.23 819387.44
e. Short term loan and advances
f. Other current assets significant
accounting policies
TOTAL 14379026 10087146.11


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DIVGI INDUSTRIES PVT LTD, SIRSI

A socialunit of people that is structured and managed to meet a

There are a variety of legal types of organizations, including

In the social sciences, organizations are the object of analysis for a

GOVT. FIRST GRADE COLLEGE, SIRSI Page 1

1. From a process-related perspective, an organization is viewed as an entity

Economic approaches to organizations also take the division of labour as a

By coordinated and planned cooperation of the elements, the organization is

GOVT. FIRST GRADE COLLEGE, SIRSI Page 2

STATEMENT OF THE PROBLEM

One of the main problems faced by management in organizations is the need to

GOVT. FIRST GRADE COLLEGE, SIRSI Page 3

largely spontaneous, at least at first. Consciousness, as the opposite, comes to

GOVT. FIRST GRADE COLLEGE, SIRSI Page 4

Organizing is a study of collection the available resources, charting and

In the word of Chester Bernard, an organization is “a systematic of consciously

According to LOUIS ALLEN “Organization is the process of identifying and

GOVT. FIRST GRADE COLLEGE, SIRSI Page 5

According to HENRY FAYOL “To manage is to forecast and to plan, to

OBJECTIVES OF THE STUDY

1. To study the organization and management of divgi industry.

METHODOLOGY AND PROJECT DESIGN

Research methodology is a systematic way for solving any research problem.

Source of data collection:

involves the collecting of information from the first time by observation,

There are two sources for secondary data;

1. Published data: data that is already available in books, magazines, trade

2. Unpublished data: this is not published. It can be found in unpublished

The researcher intended to study in sirsi taluk ofuttarakannada district of

GOVT. FIRST GRADE COLLEGE, SIRSI Page 7

Road, Sirsi. It is a medium scale engineering industry of prestigious city SIRSI.

PERIOD FOR THE STUDY

SCOPE OF THE STUDY

Importance or area of study: to study the problems and suggestions

LIMITATIONS OF THE STUDY

GOVT. FIRST GRADE COLLEGE, SIRSI Page 8

a. DIPL depends completely on Divgi Warner Pvt. Ltd (Pune) for

2. Statement of the problem

6. Scope for the study

7. Limitation for the study

Nature and growth of auto component industry

1. Nature and growth of auto component industry in world

GOVT. FIRST GRADE COLLEGE, SIRSI Page 10

NATURE AND GROWTH

GOVT. FIRST GRADE COLLEGE, SIRSI Page 11

Auto Components Market

Domestic growth on a firm footing, exports looking up:

It is expected that domestic revenue for auto component companies will

Expect strong earnings momentum for leading players:

GOVT. FIRST GRADE COLLEGE, SIRSI Page 12

Strong growth outlook for domestic auto OEMs to boost demand

While auto component companies retain focus on enhancing their

NATURE AND GROWTH OF AUTO COMPONENT INDUSTRY IN

presents its findings in "Global Auto Component Industry 2012-2017 Trend,

Features and Scope

a. Industry size estimates in terms of (US $) value by region and by

Industry Analysis & Industry Trends

GOVT. FIRST GRADE COLLEGE, SIRSI Page 14

Industry SWOT Analysis

The Global Auto Parts & Accessories Manufacturing industry is in decline in

GOVT. FIRST GRADE COLLEGE, SIRSI Page 15

that exports in 2012-13 continue to be robust despite the global economic

NATURE AND GROWTH OF AUTO COMPONENT INDUSTRY IN