Organisation study

1 PROFILES

1.1 Introduction:

The Automobile industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million every year. It is the world's second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand An automobile, auto car, motorcar or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor. The automobile industry comprises of heavy vehicles (trucks, buses, tempos, tractors), passenger cars, and two-wheelers.

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1.1.1 History:
The history of the automobile begins as early as 1769, with the creation of steam engine automobiles capable of human transport. In 1806, the first cars powered by an internal combustion engine running on fuel gas appeared, which led to the introduction in 1885 of the ubiquitous modern gasoline- or petrol-fueled internal combustion engine. Cars powered by electric power briefly appeared at the turn of the 20th century, but largely disappeared from use until the turn of the 21st century. The need to reduce the amount of air pollution generated by transportation has raised new interest in electric and hybrid vehicles. The early history of the automobile can be divided into a number of eras, based on the prevalent method of automotive propulsion during that time. The Indian automobile industry seems to come a long way since the first car that was manufactured in Mumbai in 1898. The automobile sector today is one of the key sectors of the country contributing majorly to the economy of India. It directly and indirectly provides employment to over 10 million people in the country. The Indian automobile industry has a well-established name globally being the second largest two wheeler market in the world, fourth largest commercial vehicle market in the world, and eleventh largest passenger car market in the world and expected to become the third largest automobile market in the world only behind USA and China.

The growth of the Indian middleclass along with the growth of the economy over the last few years has resulted in a host of global auto giants setting their foot inside the Indian Territory. Moreover, India also provides trained work force at competitive costs making the country a manufacturing hub for many foreign automobile companies. India proves to be a potential market as compared to most of the other countries, which are witnessing stagnation as far as automobile industry growth, is concerned.

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Organisation study A recent research conducted by the global consultancy firm Deloitte says that at least one Indian automobile company will feature among the top six automobile companies that will dominate the car market by 2020. The Indian automobile industry proved to be in good shape last year even after the economic downturn. This was majorly due to the fact of renewed interest shown by global automobile players like Nissan Motors, which consider India to be a potential market.

As far as authorized dealer networks and service stations are concerned Maruti Suzuki is the most widespread. The other automobile companies are also showing rapid progression in this field.

1.2

INDUSTRY PROFILE:

1.2.1 Indian Automobile Export market:

India is a very favorable market for small cars be it production, sales or export. Since the Indian automobile industry is the largest manufacturer of small cars companies like Hyundai and Nissan Motors export about 2,40,000 and 2,50,000 annually. India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. The Indian automobile exports registered a 22.30 percent growth in the year 2009. The growth trend was as follows: Two Wheelers- 32.31 percent, Commercial Vehicle - 19.10 percent and Passenger Cars grew by - 19.10 percent.

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Key automobile manufactures in India

Maruti Udyog General Motors Ford India Limited Eicher Motors Bajaj Auto Daewoo Motors india Hero Motors Hindustan Motors Hyundai Motors India Limited Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Limite

1.2.1.1 Indian Automobile Industry Growth 2009:

Gaining from Government stimulus packages, more demands and lower interest rates on automobile loans the Indian automobile industry witnessed a phenomenal growth of 26.41 per cent in the year 2009. Segment wise cars posted a growth of 25.10 percent and two wheelers sales grew by 26 percent. The year 2009 actually turned out to be one of the best years in the history of the automobile industry in India. If the trend continues the same way then Indian will soon become the second fastest growing automobile market in the world only after China.

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Table 1.2 Domestic Market Share for 2009 Automobiles Passenger Cars Commercial Vehicles Two Wheelers Two Wheelers Market Share 15.86 % 4.32 % 3.58 % 76.23 % 2010

Figure 1.2

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1.2.1.2

Auto components sectors:

Any automobile is the assembly of several auto parts with each part contributing to its machinery and polishing its quality. Lack or failure of just one part can breakdown the entire system so every component plays its part. We have provided the detailed list of all the components of any vehicle. This list would enable the user to gain complete knowledge about various auto parts. It would allow the user to access the importance and uses of various integral parts of automobile. The automotive sector, comprising of the automobile and auto component sub sectors, is One of the key segments of the economy having extensive forward and backward linkages with other key segments of the economy. It contributes about 4 per cent in India's Gross Domestic Product (GDP) and 5 per cent in India's industrial production. The well developed Indian automotive industry ably fulfills this catalytic role by producing a wide variety of vehicles like passenger cars, light, medium and heavy commercial vehicles, multi-utility vehicles such as jeeps, scooters, motorcycles, mopeds, three wheelers, tractors etc. The auto component industry, which is an important part of automotive sector, comprises about 500 firms in the organized sector and more than 10,000 firms in the small and unorganized sector has been one of the fastest growing segments of Indian manufacturing. It has the capability to manufacture the entire range of auto parts and has rapidly added to its capacity base. Indian auto components industry has an important place at the global level.

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Organisation study 1.2.2 Advantage India:

India holds huge potential in the automobile sector including the automobile component Sector owing to its technological, cost and work force advantage. Further, India has a well-developed, globally competitive Auto Ancillary Industry and established automobile testing and R&D centers. The country enjoys natural advantage and is among the lowest cost producers of steel in the world. The Indian automobile industry today boasts of being the second largest two wheelers manufacturers in the world, second largest tractor manufacturer in the world, fifth largest commercial vehicle manufacturer in the world and Fourth largest Car market in Asia. World largest Motorcycle manufacturer is in India. India has largest three-wheeler market in the world, second largest two wheeler market in the world, fourth largest passenger vehicle market in Asia, fourth largest tractor market in the world, fifth largest commercial vehicle market in the world. India became fastest growing car market in the world in 2004. In India, lots of investment opportunities exist in the following areas: _ Establishing Research and Development Centres _ Establishing Engineering Centres _ Passenger Car Segment _ Two Wheeler Segment _ Heavy truck Segment

Segment Installed Capacity(Nos.) Four Wheelers Two & Three Wheeler Total 9,540,000 1,590,000 7,950,000

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Organisation study 1.2.3 Total production:

The automobile industry produces a wide variety of vehicles including 17 lakh four wheelers and over 80 lakhs two and three wheelers in 2005-06. The turnover of auto components industry has grown from US $3.1 billion to US $10 billion between 1997-98 and 2005-06. Production trend:

Installed capacity of this sector has been growing at a compound annual rate of over 16 per Cent since 2001-02. Automobile industry grew by 14.83 per cent in April 2006-Feburary 2007. Cumulative growth of some important segments in April 2006-December 2007 was _ Passenger Vehicles: 22.91% _ Passenger cars: 24.76% _ Utility Vehicles: 12.69% _ Multi-Purpose Vehicle: 28.38% _ Commercial Vehicle: 36.12% _ Medium and heavy Commercial Vehicle: 36.74% _ Light Commercial Vehicle: 35.25% *Source: Ministry of Heavy Industries & Public Enterprises (Department of Heavy Industries), Government of India

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Organisation study 1.2.4 Some of the major companies:

There are 15 manufacturers of passenger cars and multi utility vehicles, 9 manufacturers of Commercial vehicles, 14 of two-three wheelers and 14 of tractors besides 5 manufacturers of engines. In passenger car segment, Maruti Udyog Ltd. Is on the top, followed by Hyundai and Tata Motors. Some of the major players of Automobile industry are:

Automobile Production Category PassengerCars Multi Utility Vehicle Commercial Vehicles Two Wheelers Three Wheelers Total Growth in per cent 2.1 1.7 18.6 15.12 16.8 14.97 18.04 203 4,759 213 5,316 277 6,280 341 7,229 374 8,461 434 9,735 264 5,394 3,759 4,271 5,076 5,625 6,527 7,600 4,155 157 163 204 275 350 391 237 128 106 112 146 249 263 144 2000-01 2001-02 2002- 03 2003-04 2004-05 2005-06 2006-07(tillSept'06) 513 564 609 842 961 1,046 594

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Organisation study 1.2.5 Total investment & turnover:

The automobile industry had an investment of nearly 50,000 crore in 2002-03 and it is Estimated to go up to Rs. 80,000 crore by the year 2007.The turnover of this sector exceeded Rs. 144,000 crore in 2003-04 including nearly 92,500 crore of automobile industry. In 2004-05, total turnover of this sector was estimated to exceed Rs. 1,65,000 Crore

Presence of foreign firms: Company Industry Maruti Udyog Ltd. Automobile Hero Honda Motors Automobile Bharat Forge Co. Auto Ancillaries Ashok Leyland Automobile Amtek Auto Auto Ancillaries Exide Industries Auto Ancillaries Sundaram Clayton Auto Ancillaries TVS Motor Company Automobile Sundaram Fasteners Auto Ancillaries Fag Bearings India Auto Ancillaries Bosch Chassis Systems India Auto Ancillaries Eicher Motors Automobile Automotive Axles Auto Ancillaries 1044 1005 957 MarketCapitalization( RsCrore), January 2007 26711 14925 8090 6,011 4549 2981 2497 1944 1756 1124

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After liberalization of Indian Economy in general and automobile industry in particular, considerable number of Multinational Companies is operating in India either as wholly owned subsidiaries or in collaboration with their Indian collaborates. This automotive sector has taken benefit of liberalization of Indian economy to a large extent and made available various international brands in India for Indian consumers. Firms like Hyundai are supplying manufactures cars in the international market using its manufacturing facility in India in a big way. These firms are using locally available efficient and cost competitive huge pool of human resource in India.

Employment generated: This sector has generated about 4.5 lakh of direct employment and about one crore of indirect employment. The auto component and ancillary industry has huge forward and backward linkages in terms of employment generated. Huge number of firms in auto component and ancillary industry in India are in small scale and unorganized sector employing large number of human resources.

Automotive sector in India has great potential to play a significant role in export from India. This potential is being tapped to some extent after liberalization of Indian Economy. During the last two years, the export in this sector has grown mainly to the export of cars, two/three wheelers.

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1.2.6 Future prospects:

Future prospect of Indian Automotive Sector is looking bright. A Customer Satisfaction Ranking done by TNS Automotive in April 2007 revealed that indigenous automobile companies are replacing foreign multinational companies in terms of consumer satisfaction. For the first time since 2002, the year on which TNS started this kind of survey, home grown companies displaced MNCs from the top. This trend shows that automotive sector has much to deliver in the years to come.

Automobile Export (Numbers in thousand) Category 200001 Passenger Cars 98 Multi utility Vehicles Commercial Vehicles Two wheelers Three wheelers Total Growth (%) 14 111 16 168 20.24 12 104 15 185 9.74 12 180 43 307 65.35 17 265 68 479 55.98 30 367 67 620 31.25 41 513 77 806 28.03 23 332 62 519 27.43 4 3 1 3 6 5 3 23 50 71 126 161 2001-02 2002-03 2003-04 2004-05 2005-06 200607(till Sept.06) 170

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1.3 COMPANY PROFILE

1.3.1 Vision Aditya Auto would constantly strive to live and 'excel' & meet customer expectations and shall continue to be 'customer focused' and 'customer success' driven.

1.3.2 Mission Aditya Auto is committed to building process capabilities, ensuring engineering excellence, assuring quality and guaranteeing customer delight through sustained leadership and teamwork.

1.3.3 Aditya Auto Products & Engineering (India) Private Limited Aditya auto is a privately owned organisation with its head-quarters in Bangalore; it began as Autarky Auto in April 1989 founded by C. Jayaraman(Managing Director & C.E.O) and established as Aditya Auto Products in February 1999. Aditya Auto serves OEMs and tier-one automotive suppliers in both domestic and global markets; In addition to providing door latches, window regulators, wiring harnesses, and engineered assemblies, Aditya Auto is also pushing into new markets as a contract manufacturer. While classified as a midsize business, the company operates a complex manufacturing and distribution network that spans six production facilities in India plus logistic support units in India, Europe, and North America. Aditya Autos core business is the design, development & manufacture of Door & Access systems, Wiring Harness systems, Driver Control Systems, integrated products for the automotive industry. Aditya Auto not only caters to the need of domestic customers but also the long list includes international OEMs and automobile manufacturers from around the world. This list of customers includes names like Mahindra and Mahindra, PIAGGIO, Skoda Auto, Ashok Leyland, Tata Motors, Suzuki, Robert Bosch, Inteva Products etc.

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Organisation study Along with the above said products Aditya Auto has pushed into the world of contract manufacturing; wherein Aditya Auto manufactures parts or products based upon the customers design and preference; rather than designing it themselves.

Company Profile

Name

Aditya Auto Products & Engineering (India) Private Limited

Founder

C. Jayaraman (Managing Director & C.E.O)

Headquarters

Bangalore, India

Industry

Automotive

Products and services

Auto parts and contract manufacturing

Employees

400

Revenue

100 crores($15.4 million)

No. of Plants

Products

Door latches, window regulators, wiring harnesses, and engineered assemblies

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CUSTOMERS

Aditya Auto caters to a wide range of both domestic and international clientele; some of them are:-

Domestic Aditya Autos proves in manufacturing parts for various domestic and global OEMs are well known in market; some of the domestic OEMs who rely on Aditya for there equipment components are: Maruti Udyog (Suzuki) 800 cc Car; Omni, Gypsy, Esteem, Wagon R, Versa & Swift Tata Motors Sumo Victa Gx Ashok Leyland - Iveco LCVs & Trucks Eicher Motors (LCVs & Trucks) Mahindra & Mahindra Scorpio, Bolero & Cab King

Global Aditya also caters to the requirements of various overseas i.e. global OEMs and tier 1 suppliers t the automobile industry; some of which are: ArvinMeritor Lvs USA, France, Poland, & China (Spin off Company of Rockwell International Inc., USA), now known as ArvinMeritor Inc. Robert Bosch, Clayton, Australia Kongsberg Automotive, Burton, UK KRAH RWI, Drolshagen, Germany ESAB, LAXA, Sweden

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Organisation study INFRASTRUCTURE DOOR & ACCESS DIVISION

This division located in the Doddaballapur Industrial Area in Bangalore, deals with the design and manufacture of Window Regulators and Door Latches for various vehicles with customers located across India and abroad. Under Technical license with ArvinMeritor, a global leader in Window Regulators & Door Latches, Sun Roof and related products, this division of Aditya Auto has an agreement that provides for technical assistance and new product development.

Spread over floor area of 3450 sq m in a 6032 sq m campus, this unit has a full complement of facilities like Welding facility and Manufacturing lines along with testing facilities.

WIRING HARNESS DIVISION

A 100% Export Oriented Unit, this division located at the Bommasandra Industrial Area in Bangalore, deals with the design and manufacture of Harnesses, Integrated Products, Lead wires and Insert Molded Connectors for export. This division has the distinction of being ranked thirteenth in India and is also the only manufacturing facility to get ISO, QS & TS certifications within three years of inception. Spread over floor area of 1750 sq m in a 4000 sq m campus, this unit has a full complement of facilities for high quality production.

CONTRACT MANUFACTURING DIVISION

Established in 2005, this division primarily deals with the exports of Window Regulator and Latch sub systems. This division also houses Aditya Autos Engineering Design Center. Located in the Doddaballapur Industrial Area in Bangalore, this facility addresses the demand for outsourced manufacturing of auto components and epitomizes our competitive edge in the realm of design, testing and prototype development

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The division caters to the manufacture of products intended for OEMs of leading international automobile brands and is capable of meeting specific product development requirements. Aditya Auto is a major player in the export of automotive parts to. The major products are Door Latch sub-systems like Retention Plate & Back Plate sub-assemblies and Window Regulator sub-assemblies.

COLD HEADING & PART MANUFACTURING

Established in 2006, this is the latest addition to the manufacturing divisions at Aditya Auto. Located at Pudukottai near Trichy in Tamil Nadu, this division handles the Cold Forging, Cold Heading and Vertical Integration tasks. Spread over an 18,000 sq feet campus, this division deals with the manufacture of fasteners and rivets.

PRODUCTS Door & Access Products

Window Regulators Aditya Auto manufactures and supplies a wide range of Window Regulators, both manual and power, to various customers across domestic and overseas markets.

Cross Arm Drum & Cable Push Pull

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Organisation study Door Latches Door Latches are among the flagship products of Aditya Auto. It consist of three product categories that include

Split Latch (2 PC. External & Internal) Compact Latch Actuators Including ECUs

Wiring Harness & Integrated Products

Aditya Auto has been a major producer of wiring harnesses since its inception; the various types of harnesses manufactured by it are: Wiring Harnesses Integrated Harnesses Electronic Sub-Assemblies Over Moulded / Insert Moulded Assemblies Lead Wires

Turnkey Solutions Adityas competencies across the design, development, production, testing, and validation space for a wide range of auto components enables it to address the requirement for Prototypes.

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Organisation study

Organisational Structure
Organisation Structure refers to the framework, typically hierarchical, within which an organization assigns the lines of authority and communications, and allocates rights and duties. Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management.

A structure depends entirely on the organization's objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy.

Elements of Organization Structure There are six elements that managers need to address when they design their organizations structure:

Work Specialization

This describes the degree to which tasks in an organization are divided into separate jobs. The main idea of this organizational design is that an entire job is not done by one individual. It is broken down into steps, and a different person completes each step. Individual employees specialize in doing part of an activity rather than the entire activity.

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Departmentalization

It is the basis by which jobs are grouped together. For instance every organization has its own specific ways of classifying and grouping work activities.

There are five common forms of departmentalization: Functional Departmentalization: It groups jobs by functions performed. It can be used in all kinds of organization; it depends on the goals each of them wants to achieve. Product Departmentalization: It group jobs by product line. \each manager is responsible for an area within the organization depending on his/ her expertise. Geographical Departmentalization: It groups jobs on the basis of territory or geography. Process Departmentalization: It groups jobs on the basis of product process flow. Customer Departmentalization: It groups jobs on the basis of common customer.

Chain of Command

It is defined as a line of authority that extends from upper organizational levels to the lowest clarifies who reports to whom. There are three important concepts attached to this theory.

levels and

Authority: Refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it. Responsibility: The obligation to perform any assigned duties Unity of Command: The management principle that each person should report to only one manager.

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Span of Control

It is important to a large degree because it determines the number of level and managers an organization has. It also determines the number of employees a manager can effectively manage.

Centralization and Decentralization

In a centralized organization, all decisions are made by C-level managers such as chief executive officer, chief operating officer and chief marketing officer. Centralization leaves department managers with little or no input.

A decentralized system allows all managers the opportunity to give input, while bigger decisions are still made by C-level managers.

Formalization:

It refers to the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedure.

Types of Organizational Structure:

The most common organizational types may be classified as follows: The Functional Structure The Divisional Structure The Matrix Structure

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Functional Structure:

Functional Structures have been extensively used large organizations; Employees within the functional structure are differentiated to perform a specialized set of tasks. For instance, the marketing department would be staffed only with marketers responsible for the marketing of the company's products. This specialization leads to operational efficiencies where employees become specialists within their own realm of expertise.

Functional structures are often characterized by a large degree of formalization, making each function reliant on standardized ways of operating. Decision-making power is often centralized at the top of the hierarchy.

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Divisional Organizational Structure: A divisional structure groups an organizations divisions according to the specific demands of products, markets or customers. Unlike the functional organizational structure, where the different organizational functions of the company conduct activities satisfying all customers, markets and products, the divisional structure focuses on a higher degree of specialization within a specific division, so that each division is given the resources, and autonomy, to swiftly react to changes in their specific business environment. Therefore, each division often has all the necessary resources and functions within it to satisfy the demands put on the division.

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Matrix Structure:

The matrix structure is an organizational design that groups employees by both function and product. The organizational structure is very flat, and the structure of the matrix is differentiated into whatever functions are needed to accomplish certain goals. Each functional worker usually reports to the functional heads, but do not normally work directly under their supervision. Instead, the worker is controlled by the membership of a certain project, and each functional worker usually works under the supervision of a project manager. This way, each worker has two superiors, who will jointly ensure the progress of the project.

The cross functional teams of a matrix structure reduce the functional barriers between departments, and increase the integration of functions. Matrix structures open up for communication, and may provide an opportunity for team members to learn from each other - thus distributing valuable knowledge laterally within the organization. The matrix structure makes it possible to assign specialized resources to projects when needed.

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Example:-Matrix Organizational structure

Organizational Structure of Aditya Auto Aditya Auto being auto-parts manufacturing concern and due to its foray into contract manufacturing, has to cater to the various whims and needs of the customer; so as to meet the customer requirements on time. Thus it follows a complex structure which is a mixture of all the above defined organizational structures namely functional, divisional and matrix structures. As is visible in the following organizational structure The top management the i.e. board of directors; managing director and the dept. heads follow a functional structure i.e. they grouped according to there functions; each department has a divisional structure which is followed by a matrix structure.

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Departmental Analysis

Aditya Auto being a automotive parts manufacturing concern consists of the following departments, Human Resource Accounts Engineering o o o o Design Production Stores Purchase

Marketing

Human resource: Today customers expect a higher standard of service than they did years ago. They now choose suppliers based on the Quality of products and services that meet not just customers' needs, but exceed their expectations.Human Resource Department has a major role to play in building right attitudes of people to change the way of working and their work life by facilitating the learning and practice of these principles. Competency may be determined by comparison between the job requirements that define what employees must do and the qualification of the employees.Human Resource Department should promote quality culture in the organisation by improving competency levels of employees through continual training and other actions.

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Competency New appointments Promotions Position classification and grading Salary determination Performance appraisal review and processing Conduct problems Performance problems Policy development Benefits Insurance etc.

Finance:

Finance is the life blood of any business. Organisation should understand the importance of finance as a component of the strategic decision making process. SMK has a well functioning finance department. The policy of the finance department is to ensure provisions of timely finance to various departments, be liaison with bank, plan and analyze cash inflows and outflows, maintaining accounting records as per the companys Act and Quality policies.

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Finance and accounting department Policy:

The policy of Accounting and Finance department is to ensure provision of timely finance to various departments without any delay as per plans and to exercise financial controls and to maintain and record all financial transactions of the organization accurately, systematically and to provide all statutory reports and returns to concerned statutory agencies; and to provide internal information reports on time to management for measuring organizational performance and for decision making. The accounting is done as per the Generally Accepted Accounting Principles prevailing in India and as per the accounting policies formulated by the organization and also as per the accounting standards issued by the Institute of Chartered Accountants of India.

The accounting shall be done systematically by using the various processes and by classifying as various cost centers duly approved by the management. The documents and records is classified, written and kept in a logical order and in a manner easy for identification and retrieval up to the stage of final accounts and for presentations to those concerned with the business. The records are kept updated and current till previous day so that any information given is accurate, current and useful. The records, reports and procedures will be audited internally as the management may deem important either by internal staff or by external agency to ensure the authenticity and security of the systems and procedures. Aditya Auto taking into consideration various constraints has outsourced the functions of Accounts Department to an external organization.

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Organisation study
Engineering department: Aditya Auto being a manufacturing concern Engineering Department is most significant part. The Engineering Department is responsible for all the necessities related to product from its design & production of product to quality control & maintenance of the machineries. Each of which is highly essential not only for the quality of the product but it also affects the reputation and brand image of the company as a whole.

The sub-departments under Engineering are:

Design:
The design department has the main function to design parts in accordance with the customers

requirement and also improve the existing design provided by the customer so as to meet there specifications; in some cases parts are designed according to the suitability to the existing machinery or in other cases improve the designs quality and durability.

Production:
The production department sets standards and targets for each section of the production process.

The production department takes care of each function and process relating to the production of the product. It also monitors the quality and quantity of the product. In Aditya Auto the quality of the product is monitored at each stage of production rather than at the end.

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Stores:
The stores department is responsible for storing all the necessary tools, spares, raw materials and

equipment required by the manufacturing process. Where sourcing is unreliable, buffer stocks are kept and the use of computerised stock control systems helps keep stocks at a minimal but necessary level for unhindered production. The activities of stores is an important one. The materials required as per Production plan

are to be indented, Stored and made available. It is also the duty of Stores Department to handle and preserve the materials to avoid breakage and deterioration in quality.

Purchases:
The purchase department is plays an important role. It is responsible for providing raw material,

components and equipment required to keep the production process up and running . A vital aspect of this role is ensuring stocks arrive on time and to the right quantity and quality.

Production Process:
The Co-ordination between various departments and the functions of these departments can be best understood by considering the following production process followed in Aditya Auto.

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The process consists of the following operations; Incoming Inspection of raw materials Storage of raw materials Progressive banking First part & online inspection Bending & Coining operation First part & Online Inspection Final Inspection Packing Back Audit Layout Inspection Dispatch to customer

Aditya Auto starts the process of manufacturing ones the customer confirms an order i.e. customer accepts the terms & conditions of the contract; accepts the design and gives a go-ahead on manufacturing the product. The process is as follows.

Incoming Inspection of Raw materials:

The first step begins when the raw materials are ordered and received by the purchase department. The purchase department is responsible to check whether all the raw materials supplied are in accordance with order placed. If wrong materials are supplied he has to ensure that necessity steps are taken to correst it.

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Storage of raw materials: In the next step the raw material that is stored; various variables needs to be checked before storage can be complete like the moisture content in the storage area, materials packing condition, material handling methodology etc ; this is taken care of by the store department.

Progressive Banking: In this step the raw materials needs to be separated according to grade; rusting and the usage in different processes. This is done so that it becomes easy to supply the required and correct raw materials to the respective process without delay and in correct quantity; again this is taken care of by the stores department.

First Part &Online inspection:

The next step is inspection this step checks the instruments for any calibration errors and rectifies or replaces them as and when possible.

Bending & coining operation

Bending and coining operation deals with the actual manufacturing wherein the raw materials are prepared and used in production of the product with required specification.

Final Inspection:

This inspection is done so as to confirm that the machine tools and press used are calibrated and there exists no errors in them after production. If an error is found it is rectified or the machine is replaced.

Packing:

At this stage the products which are manufactured are checked for defects and defective parts or products are rejected and the good ones are packed.

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Organisation study Back Audit and layout Inspection:

Back Audit & layout inspection is done so as to check and recheck the machine tools and presses used and recalibrate them or replace them according to the requirement.

Dispatch to customers:

The finished goods after packing are checked after which these packed goods are dispatched to the respective customers.

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SWOT Analysis
A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan.

SWOT Analysis Framework

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1.1 Strengths
1.1.1 Desing validation process Desing validation process refers to ensuring the design meets the form and functional requirements specified in the statement of requirement for a product, by means of physical testing is commonly referred to as design validation.

Simultaneous Engineering
A way of simultaneously designing products, and the processes for manufacturing those products, through the use of cross functional teams to assure manufacturability and to reduce cycle time.

Lean manufacturing Aditya Auto has applied the concept of Lean Manufacturing in production wherein as mentioned earlier the quality of the product is checked at each stage rather than at the end; thus minimizing errors and improving quality.

1.2 Weaknesses 1.2.1 Raw Material Input

Though most of the Aditya Auto is automated or semi-automated many of the raw-materials are manually introduced into the machinery, because of the vaiation in the amount of input required in various machinery. But such manual input not only consumes time but also can be hazardous to the workers.

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1.2.2 Lack of full Fledged IT department

Lack of facility in the IT department was one of the major weekness found in Aditya Auto. Though there is an intranet facility available in the company, it was found to be inefficient.

1.3 Opportunities 1.3.1 Increasing Exports

The figure shown below states increase in the export of automotive parts in the past two decades.
Size and Export of Indian Auto Component Industry (In US $ billion)

Source: Source: Automotive Component Manufacturers Association

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India being a labour intensive country several international and foreign companies are looking towards India and other Asian countries for cheap and reliable auto-parts, hence the exports would tend to grow substantially. Only few automotive parts manufacturers cater to the ever increasing need of foreign companies . Though Aditya Auto has several international clients,its major source of income remains from that of the local players

1.3.2 Foreign Investments

Over the past decades there has been an increase in FDI in the automotive sector, lots of foreign players are looking for a company with latest technology where in it can invest. Aditya Auto can use this opportunity to update its technology and grow. Thus giving competition to several multinational automotive parts manufacturers which have entered Indian markets.

1.4 Threats 1.4.1 Multinational Companies

With liberalisation privatization and globalization many of the MNCs have entered the Indian market, which has high finalcial backing and with latest technology which can easily cut the cost of there products and can give a mojor competition for many local players like Aditya Auto Products.

1.4.2 Increase in Raw Material Prices.\

Due to scarce in the resources available prices of raw materials like steel have been increasing over few years causing a major concern to the producers, which has effected the company with increase in the cost of production and decrease in the profit margins.

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1.4.3 Access to World-class Technology and Quality Practices

Though Aditya Auto products has good technology and an ISO certificate one, but it is not something which can be referred to as on par with multinational companies. Aditya Auto doesnt have access to the existing and ever changing world-class technologies, this restriction has made it difficult for Aditya Auto to compete with multinationals with there high-class technology.

1.4.4 Remaining cost competitive

Cost is the major factor which determines the competitiveness of the company. Its been a challenge to the Aditya Auto to be cost competitive against the multinational companies which has backed itself with high-class technology and huge financial support..

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Best Practices
Over 20 years of its existence Aditya Auto has adopted several good practices which not only proved beneficial for the company but also for its employees. Some of them have been described below; Quality Circle A quality circle is a volunteer group composed of workers (or even students), usually under the leadership of their supervisor (but they can elect a team leader), who are trained to identify, analyse and solve work-related problems and present their solutions to management in order to improve Aditya Auto has implemented quality circle in it; where in the employees create voluntary groups so as to detect and discuss the problems faced and the possible solutions for it. Lean Manufacturing
Is a system / approach to eliminating waste and enabling continuous improvement.

Aditya Auto has applied the concept of Lean Manufacturing in production wherein as mentioned earlier the quality of the product is checked at each stage rather than at the end; thus minimizing errors and improving quality.

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