CHAPTER-01

ORGANISATIONAL ANALYSIS
1. 1 The Organisation
Ashok Leyland, a flagship of the Hinduja Group of companies was founded in 1948 and
headquartered in Chennai, India. It is a public limited automobile company having our footprints
across the globe with predominance in India. With an employee base of 11835 and total revenue
from operations INR 2,652,451 Lakhs, we are now the 2nd largest manufacturer of Commercial
Vehicles (CV) in India and globally 4th largest manufacturer of buses and 12th largest manufacturer
of trucks.

Its product range from 2.5T GVW (Gross Vehicle Weight) to 49T GTW in trucks, upto 80 seater
buses, vehicles for special and defence applications, genset and diesel engines for industrial, and
marine applications. Ashok Leyland holds the privilege of unveiling the first electric bus and Euro 6
compliant truck in 2016. Over hundred thousands of passengers use their buses to get to their
destinations every day and 7lakhs trucks keeps the economy moving. Many logistics vehicles are
deployed in the Indian Army and Ashok Leyland helps to keep the borders secure.

Ashok Leyland received the OBD-II (on board diagnostic) certification and also has ISO/TS 16949
Corporate Certification, iEGR (intelligent exhaust gas recirculation), SCR (selective catalytic
reduction), and CNG technologies. Driven by innovative products suitable for a wide range of
applications and an excellent understanding of the customers and market conditions, they have been
the fore-front of the commercial vehicle industry for decades.
The customer base is served through an pan India service and sales network, supplemented by close
to 3000 plus touch points. Planet, People and Profit for all stakeholders especially our customers is
at the core of Ashok Leyland which resonates with our Philosophy of ‘AAPKI JEET, HAMARI
JEET’.

Business Mission Statement

“Enhancing life through mobility”

Business Vision Statement

1. To be in the global top 10 in M&HCV trucks(>7.5T GVM) and global top 5 in M&HCV
buses(8m and above) in volume terms.
2. To be the leader in emerging markets.
3. To be the No.1 in commercial vehicle maker in India by coming No.1 in M&HCV, No.2 in
LCV and No.1 in Defence.

!1
 CHAIRMAN
Mr. Dheeraj G HindujaF

Chart

CEO & MD
Mr. Vinod K Dasari
1. 2. 1 Organisational
1. 2 Structure and Personnel

President, Finance & CTO President-HR, Communication and President, Global Trucks
D r. S e s h u CSR
CFO Mr. Anuj Kathuria



President, Global Sales and President, LCV

Distribution
Mr. Rajive Saharia Mr. Nitin Seth

Senior Vice President, Product Senior Vi c e President, Senior Vice President, Quality, Senior Vice President,
Development Manufacturing and Project Planning Sourcing and Supply Chain Special Projects

Senior Vice President, IT / Senior Vice President &

CIO Head - Global Bus Division

Head, Corporate Strategy Head, Internal Audit and Head, Power Solutions Company Secretary
Head, Defence
and Planning Risk Management Business Mr. N Ramanathan
Mr. Amandeep Singh

!2
1. 2.2 Organisation’s Structure and Operating Efficiency

1. Ashok Leyland follows Hybrid Organisational Structure. This structure combines both the
advantage of functional and divisional structure.
2. Functional organisational structure is instrumental in achieving good economies of scale and
whereas, divisional structure gives the benefits of specialisation of services and products.
3. Hybrid structure provides expertise in the primary functional areas. It facilitates flexibility in
handling customised products or service lines, and cater to differing needs of customers and
corporate goals.

Advantages:
1. Alignment of corporate and divisional goals.
2. Functional expertise and efficiency.
3. Adaptability and flexibility in divisions.

Disadvantages:
1. Conflicts between corporate departments and units.
2. Excessive administration overhead.
3. Slow response to exceptional situations.

1.2.3 Position Description of the Management

Work is assigned to the employees based on their skill level or their expertise level or their
experience level. Employees are found to work separately and on their own assigned tasks. There is
a chain of command and the decisions are kept at the top most level as possible.

1.2.4 Background of the leading people

All the Top and Middle level managers have a reputed academic background and most of the them
are found to posses a minimum of 7 to 20years experience in their respective field. To name a few,

CHAIRMAN (Hons) degree in Economics & History and MBA in Project

Mr. Dheeraj G Management from the Imperial College, London University, 1994.
HindujaF  
CEO & MD Masters Degree in Engineering Management from McCormick School
Mr. Vinod K of Engineering followed by an MBA from Kellogg School of
Dasari Management, both from Northwestern University.

!3
 P r e s i d e n t , Chartered Accountant and a Company Secretary with over 28 years
Finance & CFO
M r. Gopal
Mahadevan
CTO Masters in Physics and Electronics at IIT Bombay and Ph.D., in High-
Dr. Seshu
Frequency Technology for space applications at the University of
Bhagavathula
Stuttgart in Germany.
President, Global Engineering from the Birla Institute of Technology and Science (BITS)
Trucks and an MBA from XLRI, Jamshedpur.
Mr. Anuj Kathuria
President, LCV Engineering from Birla Institute of Technology and Science, Pilani and
Mr. Nitin Seth his Post Graduation in Business Management from University of
Mumbai
Senior Vice President, Mechanical Engineer and a Post graduate in Maintenance Engineering.
IT / CIO
He also holds a Master degree in Engineering Management and a PG in
Mr. Venkatesh Computer applications.
Natarajan

1.2.5 Strongest asset(s) of the leading people

Based on my observation from the management team and interaction with few of the employees I
can conclude that EXPERIENCE has been the biggest assert of the leading people of Ashok
Leyland.

1.3 Financial Report

According to the financial report (2017-2018) Ashok Leyland achieved a record revenue of
Rs. 26,248 Crores and a record profit of Rs.1563 Crores together with sustaining the market share
gains in a competitive environment is quite commendable.

Financial summary of Profit and Loss account is given below:

!4
 2017-18 2016-17 inc /
Particulars
(Dec) %

Income

Sales 26 ,5 24 .5 1 21,4 5 3 .14 23 .6

Other Income 189 .76 13 6 .27 39.3

Total 26,714.27 21,589.41 23.7

Expenditure

Material cos t 18,6 21.27 13 ,9 73 .3 9 33.3

Excise duty 276 .6 0 1,3 13 .01 ( 78. 9 )

Employee benefits expense 1,811.9 2 1,4 80.05 22. 4

Finance costs 13 1.25 15 5 .3 8 ( 15 . 5 )

Depreciation & amortisation 554.61 5 17.89 7. 1

Other expenses 3 ,075 .73 2,4 84 .16 23 .8

Total 24,471.38 19,923.88 22.8

Profit before exchange


gain on swap contracts exceptional 2,24 2.89 1,6 6 5 .5 3 34.7
items & tax

Exchange gain on swap contracts 0.3 9 15 .4 0 ( 9 7. 5 )

Profit before exceptional items & tax 2,243.28 1,680.93 33.5

Exceptional items (12.57) (350.84) (96.4)

Profit before tax 2,230.71 1,330.09 67.7

Tax expense 668.12 107.01 524.4

Profit after tax 1,562.59 1,223.08 27.8

Basic earnings per share (Rs) 5.34 4.24 25.9

!5
 Standalone Consalidated
2017-2018 2016-2017 2017-2018 2016-2017
2,6 5 2,4 5
Revenue from Operations 2,14 5 ,3 14 .3 3 2,9 9 0,109 .18 2,4 18,9 82.20
1.19
Other Income 18,9 76 .4 7 13 ,6 27.01 19 ,9 88.4 2 13 ,06 9 .22
Total income 26,71,427.66 21,58,941.34 30,10,097.60 24,32,051.42
Profit Before tax 2,23,071.54 1,33,008.62 2,57,766.60 1,83,326.25
Less:Tax expenses 6 6 ,812.5 8 10,700.9 0 75 ,111.5 5 19 ,6 11.9 1
Profit after tax 1,56,258.96 1,22,307.72 1,82,655.05 1,63,714.34
Profit/(Loss) from
- - (1,273.15) (423.31)
discontinued operations
Profit for the period 1,56,258.96 1,22,307.72 1,81,381.90 1,63,291.03
25 9 ,4 27.4
Balance profit from last year 25 6 ,85 3 .4 3
7
Transfers:
- From Debenture Redemp on
Reserve to Statement of Pro t 6 ,25 0.00 5 ,25 0.00
and Loss
Profit available for
appropriation
Appropriation:
(45,653.
Dividend paid during the year (27,03 5 .83 )
9 2)
Corporate Dividend tax
(9 ,29 4 .07) ( 5 , 5 03 . 86 )
thereon
Pursuant to amalgamation - (9 2,3 23 .21)
Other Comprehensive Income
arising from re-measurement
(2,25 2.26 ) ( 120. 78)
of defined benefit obligation
(net of tax)
Balance of profit carried to
3,64,736.18 2,59,427.47
Balance sheet
Earnings per share (Face value
of Rs1/ -)
- Basic ( Rs) 5.34 4 .24 6 .02 5.51
- Diluted (Rs) 5.32 4 .24 6 .00 5.51

!6
!7
!8
1. 4 LEGAL ASPECTS

To maintaining high ethical standards in accordance with the laws and regulations are important for
any businesses. This liabilities increases for a manufacturing company as they face additional
cxrsponsibilites of protecting employees and consumers from hazards
The hazards could be
• injury to workers and
• products are unsafe to the consumers
Policies and controls within a company is a legal requirement.

Safe Manufacturing Environment

In a manufacturing setup , machines(Automatic,Semi Automatic and Manual) and tools/materials
attract high level of safety procedures both legally mandatory and ethically necessary. Too many
legal mandatory and ethical mandatory will creates compliance problems within the company.

Reduced Environmental Effects

It focus on the energy utilisation within the company while controlling its emission and better waste
management to reduce environmental damage.

Secure Workplace
Company monitors its Employers to act legally and ethically to ensure workers are free from sexual
harassment or any types of hostility. In case of any issues, all the employees have to treated fairly.

Safe Products
Customer’s satisfaction and customer’s retention has become every companies ultimate motive, and
hence they face the liability once their products leaves the factory. Products that adhere to the safety
checks should only leave the plant.

Legal Services for Ashok Leyland

It is provided by the Company’s Secretary & Compliance Officer. He is responsible for ensuring
compliance with regulatory and statutory requirements and that all that decisions of the board of
directors are implemented.

1. 5 MARKETING
Ashok Leyland is known for its advertisements in papers and Tv. In the first-ever association with a
celebrity endorser in over six decades, Ashok Leyland announced Mahendra Singh Dhoni as their
brand ambassador.

!9
1.5.1 Unique marketing tactics
Large commercial vehicle aftermarket business is estimated Rs.12000 Crore, Ashok Leyland, plans
to tap into the digital market place to generate Rs 1000 crore through an online platform in the next
3-5 years.( as on 12-Aug-2017)
The company has introduced four digital solutions - iAlert, ServiceMandi, E-diagnostics and
Leykart.
The iAlert, “a telematics technology that will help the customer track the vehicle and helps them
get vital info on the vehicles health in real-time. If the vehicle needs attention, i-Alert sends the
alerts directly to their mobile”.
ServiceMandi connects customers with rated, trained mechanics with pre-agreed rates. The
company already has 3000 mechanics enrolled under this.
E-diagnostics ensures fast diagnostics and visual instruction for repair and Leykart ensures round
the clock availability of the genuine parts along with doorstep delivery.

Ashok Leyland claims most of its customer (truck owners) end up getting 3rd party services and
spare parts, and the intent of the company is to bring back the Ashok Leyland truck users into the
company's authorised showroom for service and make them use their own spare parts. On a average
a trucker spends about Rs 3 crore for sales and service and Ashok Leyland says the company only
generates INR 20 lakh, the intent with the digital market place to tap into the balance.

1.6 PUBLIC RELATIONS / COMMUNITY RELATIONS

1.6.1 How does organisation communicate with its stakeholders and are they effective?
Ashok Leyland understands the fact that not all the stakeholders have a direct business engagement
with them but they are significant in the broader sustainability context of their Company and the
regions they operate in. Their stakeholders play an essential role in their continued success.

!10
They proactively engage with stakeholders informally and form ally to share information, discuss
the company’s programs and performance and determine opportunities to collaborate towards
common goals. Stakeholders’ views, concerns and key expectations have been elemental in shaping
and calibrating their strategy.
This process helps them identify stakeholder expectations and to design their sustainability strategy
balancing the different needs and expectations of stakeholder. The Company is constantly
expanding their proactive engagement with all of their stakeholder groups. Recognising that
stakeholder engagement has been a integral part of partnership building, Ashok Leyland aims to
institutionalise this structured approach through a formal process in the future.
How Ashok Leyland involved within its community?

1.7 TECHNOLOGY
They strongly believe that with the ever changing dynamic market, Ashok Leyland is the face of
innovation in the commercial vehicle segment. Their research and development is a core
competency today that spans our entire value chain, crossing multiple functional areas and is a
symbol of our evolving new culture.

!11
1.7.1 Technology within the company: Modern CAE / CAD resources and state-of-art facilities for
vehicle and engine design, development and testing.
Technology in product development centre: National Accreditation Board for Testing and
Calibration Laboratories (NABL), Computational Fluid Dynamics (CFD) simulation for external
and internal fluid flow; Noise Vibration and Harshness (NVH), Crash simulation for truck cabins
and bus body roll over studies; Multi body dynamics for vehicle kinematic simulation; Finite
Element Analysis(FEA) for durability and Testing & validation at component, vehicle and engine
level.
Technologies in helping customer: iAlert, ServiceMandi, E-diagnostics and Leykart
Technology in communication :
(a) Employees: Employees are well informed about the latest news and proceeding in their local
web portal domain. This cannot be accessed by outside members. They can also check and apply for
leave from the electronic machines provided at each shop floor.
(b) Dealers: Each dealer has got their own log in id wherein they can check the necessary details
without making a visit to the company.

!12
 CHAPTER -02
DEPARTMENTAL STUDY
2.1 Human Resources Management

Human resource management (HRM or HR) is an approach to the effective management of the
workers in the business to gain a competitive advantage and it is designed to maximise employee
performance towards companies strategic objectives. The responsibilities of a human resource
manager fall into staffing, employee compensation and benefits, and designing/ defining work.

Value Statement
“Company considers their employees as their most valuable asset and are committed to provide
full encouragement and support to them, to enhance their contribution potential and potential to
the company’s business”.

Departmental Structure
HEAD HR

AGM HR

SENIOR MANAGER SENIOR MANAGER SENIOR MANAGER

CANTEEN TRANSPORT CONTRACT LABOUR



EMPLOYEE RELATION

SALARY
IT ISSUES ABSENTISEEM
ADMINISTRATION

!13
Duties of HRM Department:
1) WORKFORCE HIRING
Recruitment
2) DEVELOPMENT
Organisation development
3) APPRAISAL AND COMPENSATION
Performance based Incentives
4) MOTIVATION
Creating motivation environment

1) Workforce Hiring
Recruitment
It refers to the process of shortlisting, selecting and appointing suitable candidates for suitable post
(either permanent or temporary) within an organisation. The process begins when the need arises
and ends when the vacancy is filled.
1. Consultancy
2. University Placements
3. NEEM Scheme

A. Consultancy
The department manager informs to the HR department about the requirement of a new role. Then
the company approves the requirement and the information is sent to the official consultancies.
Ashok Leyland has two consultancies, they are Hinduja Consultancy and Lead consultancy. The
consultancies mail the fit applications to attend the interview. If satisfied, they are called for the
personal interview.

B. University Placements
Ashok Leyland recruitment panel goes to the Regional colleges to select the candidates.
People are selected for the following vacancies
• Graduate Engineer Trainees
• Diploma Engineer Trainees
• Industrial Training Institute
As on date Ashok Leyland has reduced the campus recruitment and the Ennore plant has stopped
campus recruitment for the past 8 years.

!14
Steps for Lateral Selection
Phase 01: Pre-Selection
Phase 02: Selection
Phase 03: Post-Selection

!15
C. NEEM Scheme
National Employability Enhancement Scheme(NEEM), is a initiative taken   by AICTE and
Government of India. The Scheme aims at reducing the shortage of skilled labours in India. It
provides on the job training/apprenticeship to the candidates. Industries becoming part of the
NEEM Scheme enjoy liability free workforce. This scheme provides job facilities to
underprivileged youth of the society. It is quite flexible in providing OJT opportunities to the target
audience.

!16
Benefits of NEEM scheme
1. Stipend is paid as a single consolidated amount.
2. Insurance coverage under the Employee Compensation Act 1923 is mandatory & PA.
Mediclaim policies are optional
3. As per Company policy candidates employees under the NEEM scheme can work in all three
shifts. Leaves & Holidays are given as per the Company policy.
Eligibility
1. Candidate should be at least 16 years of age and not more than 40 years.
2. Candidates may either be pursuing his or her Post Graduation/Graduation/ Diploma in any
technical or non-technical stream or may have discontinued studies after Class 10th.
Period of training
Training shall be for a minimum of 3 months and a maximum of 36 months and the trainings
must be NSQF(National Skill Qualifications Committee ) compliant.

2) Hr Development
¬ Training
Training is aimed at capability-building of the employees at all levels. In today’s competitive
milieu, organisations are increasingly turning to training to capture the cutting edge. Ashok Leyland
has it training and development centre, at Chennai and Hosur. Training programme is classified into
• Skill
• Knowledge
• Attitude
Training programs in Ashok Leyland are:
• Executives training
• E-learning
• Induction for DET (2 years) GET (1 year), Laterals (7 days)
Training for Senior/Middle Managers
Both external and internal training is given for the executives. Faculty from outside agencies will
be arranged for training them.
Training for senior/middle level management is done on the following basis:
1. Technical
2. Behavioral
3. Functional

!17
3) Performance based Incentives
Performance Appraisal
“Performance appraisal is the systematic evaluation of the individual with regard to his or her
performance on the job and his potential for development”
In Ashok Leyland graphical scale method is followed, it is also known as linear rating scale. In
this, a printed appraisal form is used for each appraise. The form consists of various employee
characteristics and his job performance. Various characteristics include initiative, leadership,
dependability, creative ability, analytical ability etc..,
Compensation
Performance linked pay
The company has an annual appraisal system in place and pursuant to this system, performance
linked pay, annual variable pay and/or commission is paid to the employees.
Employee motivation
Ashok Leyland targets 100% of its employees to be involved in its continuous improvement
activities. Reward systems motivates motivates the employees to contribute more to the company
4) Creating Motivational Environment
Gemba Kaizen:
Three ground rules for practicing kaizen in Gemba.
1. House Keeping
2. Muda Elimination [Waste Elimination]
• Waste of over production
• Waste of inventory
• Waste of waiting
• Waste of Motion
• Waste of transportation
• Waste of Producing Rejects
• Waste of processing
3. Standardisation.

Gemba Mission:
Implement the following
1. 5s [SEIRI,SEITON,SEISO.SEIKETSU,SHITSUKE]
2. EEI (Effort and Ergonomy index)

!18
 3. CMI (Cost management initiative)
4. Inventory Initiative
5. Critical machine uptime
6. Quality
7. Safety.
2.2 Production department

Production is the process of using 5M’s (men, materials, money, machine, methods) to
manufacture and produce goods and service.
Long Term Objectives:
• Globalization
• Technological Advancement
• economics of scale
Short Term Objectives:
• Standardisation
• Reduction of scrap

• JIT
• Adaptability and Flexibility
• Lot Size
• Economy of size and variety.

Production system:
Ashok Leyland employs a Continuous Mass Manufacturing, utilising (SPM) special purpose
machines and produces standardised items in large quantities.

Production System Characteristics

• Standardisation of Parts.
• work in progress in Reduced.
• Minimum cost of production per unit.
• Just In Time arrival of parts
• Reduction in Bottle Neck

!19
Departmental Structure
Production happens in two different places in the Ennore plant. For easy identification they have
named it as Eastland and Main Land.
In Eastland location, Axle, Engine and Machine components are made and assembled.
In Mainland location, Chassis, Gear Box, and vehicle testing is done.

Eastland

DGM(Axle, Engine, Machine components)



AGM(2)

Divisional Managers(6)

Senior Managers(12)

Managers

Department Managers

Estate Manager

Senior officials

!20
Mainland


DGM(Chassis,Gear BOX,Heat treatment,VTS)

AGM(3)

Divisional Managers(6)

Senior Managers(10)

Managers

Department Managers

Estate Manager

Senior officials

!21
Plant Layout
Product layout is employed in chassis assembly and engine assembly where in the facilities are
arranged in a line as per the process sequence of the component manufactured.
Characteristics
• Mechanised material handling(Gantry, AGV’s).
• Reduced WIP
• SPM (single station and Multi Station) are used.

Ashok Leyland Ennore consist of 7 shop floors to manufacture and assemble various components.
Shop 1: Chassis Assembly
Shop 2: VTS, Inspection
Shop 3: Engine components
Shop 4: Axle Assembly
Shop 5: Neptune Assembly
Shop 6: Cam shaft manufacturing
Shop 7: Axle arm, Axle beam, Crank shaft and Cylinder head.

Shop-01 Engine Assembly

• Cam shaft and flywheel is attache to the Engine Case
• Based on the cylinder Type, crankshaft is attached with Pistons
• Accessories like oil filters, and fuel filter are attached.
• Sliding and Meshing gears are fit to the engine.
• Valve timing is set and sent to the main assembly line

FMA- Frame Mounting Assembly

Station 0: FSM loading(Frame Side Member)
Station 1: Cross Member Loading
Station2: Setting up of Front/Rear/Middle Springs brackets
Station 3: Fitting of Engine mounting brackets
Station 4: Mounting of Steering bracket and Side Members, Front tie channel
Station 5: Mounting of Shock absorber brackets
Station 6: Frame Unloading
NEXT STAGE
SHOP I- Steps of CA(Chassis Assembly)
Station 1: Lay down regular
Station 2: Fixing of I & U bolt.
Station 3: Brake chamber attachment
Station 4: Steering gear fitment
Station 5: Silencer Mounting

!22
 Quality Gate-01
Station 6: Chassis Turnover- Propeller shaft, steering Box, U/I bolt Tightness check.
Station 7: Fuel tank Mounting
Station 8: Engine Mounting.
Station 9: Radiator mounting.
Quality Gate-02
Station 10: Oil Filling
Station 11: Car Mounting(Coolant oil and diesel filled)
Station 12: Electrical Assembly, Steering oil, plug Valve, clutch oil.
Station 13: Wheel Mounting.
Station 14: Wheel torque.
Station15: Vehicle Stating.
Station 16: Off track.
Quality Gate-03
Vehicle is sent to VTS and then to the the storage area.

SHOP I - Gear Box Assembly

Main Shaft Gear/Lay Shaft Gear

Rough Blank Shaping Hobbing Tooth Chamfering Washing

Finish Blank Teeth Grinding Washing Bore Grimding Heat treatment

Gear Box casing

Rough Blank Machining Deburring Finish Blank

Lay Shaft/Input Shaft

Rough Blank Hobbing Washing Heat treatment OD Grinding

Finish Blank Teeth Grinding Bore Grimding

!23
Main Shaft

Rough Blank Hobbing Washing Heat treatment OD Grinding

Finish Blank Thread Grinding Super Finish

SHOP II VTS & PDI (Pre Delivery inspection):

Vehicles are tested for real road conditions
The following are the various tests done to test the vehicle:
1. Slope slip Test
2. Lock to Lock Test
3. Head Lamp Alignment
4. Max Brake Test
5. Roll Brake Test
6. Acceleration test
7. Oil level and water level checking
8. Electrical components checking
9. Air leakage test
10. Power steering hose routing and clamping

SHOP IV
Front and rear axles are assembled, Engine block machining(rough) and H cylinder block Rough
machining is done. Rough machined parts are sent to the Shop VI for final finish machining.Axle
assembly
Stage 01: Beam is fitted with axle arm using Boxster nut and bolt.
Stage 02: Punching machine is used to set the component number on the axle
Stage 03: Track rod is attached
Stage 04: Brake chamber and ABS is attached
Stage 05: Rim is attached to the brake and tyre is fixed on the rim.
Stage 06: ABS wires are fixed

Shop IV - Bay II
Stage 01: Hub & Cone is assembled
Stage 02: Distance play is checked between the inner bearing and outer bearing.
Stage 03: finally grease is applied between the bearings.

!24
2.2.1 Production Matrix

Cylinder Block- H Engine Cylinder head- H Engine

No. Of Machines 32 No. Of Machines 15

Capacity/year 63900 Capacity/year 58800

Target/Shift 71(D/N) 61(Ist) Target/Shift 68(D/N) 60(Ist)

Takt time 5m 48s Takt time 6m 29s

Variation 7 Variation 7

H Engine- Camshaft
Special feature
No. Of Machines 24 1. Automatic loading and Unloading by
Capacity/year 87900 Granty.
2. Chip transfer by push and pull trolley and
Target/Shift 104D/N) 85(Ist) centralised cooling
Takt time 4m 14s

Variation 7

N Engine

No. Of Machines 14 Special Feature

1. CNC machine with automatic manipulators
Capacity/year 4800 for loading and unloading.
Target/Shift 8

Takt time 55m

Variation 2

Shift 2

N Engine cylinder head

No. Of Machines 15

Capacity/year 9600

Target/Shift 16

Takt time 27m 30s

Variation 2

Shift 2

!25
Shop IV
H CYLINDER BLOCK ROUGH

R&SF Mill HF,SF boring

width, Dr/Bore dowel
Front end & Rear end
drill&Tap

Drill dia 4.3 avg water

R-Mill FE,RE Crank bores
holes on HF
IP&OC face multi drill&tap

Drill dia 4.0 avg water holes

R Mill OCF,IP on HF
Finish IP face WP,D,Tap Mtg
holes

Crank 5 holes, dia 18 holes

Rough liner bores(6 nos) 216,210,215
Finish OCF,WP,Dr,Tap Mtg
holes

Dr on 1st crank bore&TG1

Mill req slides and grooves 1/2 holes-209,217,294
Finish WP, oil holes, slot, mill

Dr IP to crank oil hole, HF to cam,

Sump finish milling Dia 18 ON FE holes 610,128,314
Dipstick operation, horning
relief

Dr dia 14incl oil holes 7 avg holes on

MOG drilling cam boring IP M!)X1.5 holes 266,609,247

Milling PCN operation

Head face bolt hole drilling Euro 3 dipstick SPM

GPM washing

Sumo face bolt holes drilling Tappet drilling SPM

Drill dia 7 water holes on
head face

GPM washing Mill cum broaching

Drill dia 5 waters holes
through WP

Tapping of head face bolt Final washing

holes
Drill dia 4, straight water
holes on HF
Tapping of sump face
holes,Dr,Tap lift out holes

!26
 Shop VI H CYLINDER HEAD PROCESS FLOW

Head loading

Ball/WP pressing
Head from stores

Rear end WP press

Washing Head

BFW machine IMP& RF WP press


Work setting station Oil&water hole leak test

Washing machine
Number mark machine

Air leak test machine

Oiling

Heating valve
Finished component conveyor

Valve seating pressing

VG press

Work setting station

Specific hole inspection flood

wash machine

!27
Shop VI-H CYLINDER BLOCK LAYOUT

Blocks from store

Work setting station

Block loading

Drying and Air blowing

High pressure washing

Tapper&Reaming F/E, R/C Welsh Plug press

Oil gallery leak test

Honing OC face welsh press

Bearing cap washing

Liner bore washing Water ways leak test

Bearing cap assembly

tightning
Liner bore Grading(X,Y,W,Z) Oil pump performance check

Number marking on block &

bearing cap
Bearing Cap disassembly General washing

Semi fishing line boring High pressure injection flood

washing Liner bore oiling

Oil pump bore bush pressing

Foundry inspection zone Liner Carousal & Liner
selection

Grooving & thrust facing

Cam bush press
Liner press

Flash line boring Manual Welsh Press

Liner projection checking

Crank bore demurring IP face welch plug

BlockNumbering
!28
 2. 3 Safety department
Safety means absence from the occurrence or risk of injury or loss. Industrial safety or employee
safety refers to the protection of workers from the danger of industrial accidents. Safe production
and assembly of components in Ashok Leyland is the most basic social responsibility, but also to
protect the interests of employees basic premise. We strive to create an intrinsically safe enterprise,
to create a good safety record, which results in high-yield, efficient and safe production model.
Today employers are obligated to give their employees a safe and secured work environment.
Need for Safety
Safety in industry helps,
• Increase the rate of production.
• Reduce the production cost. Reduce the damage to equipment and machinery.
• Prevent the premature death of talented workers who are an asset to the society.
• Prevent the needless pain and suffering to the employees.

Significance of Industrial Safety

• It saves costs
• It improves productivity
• It develops morale
• Safety is a legal requirement
Safety Pyramid
The safety triangle was coined by Frank E. Bird, Jr based on the findings of H.W.Heinrich in his
book, Industrial Accident Prevention. Heinrich established that based on his findings an accident
ratio of 1 (major injury) to 29 (minor injuries) and 29 (minor injuries) to 300 (no-injury accidents)
existed. It is also known as Bird’s Triangle, Heinrich’s Triangle, Loss Control Triangle or the
accident pyramid.
Ashok Leyland’s Accident Pyramid
It consist of five different range of type of accidents which need or need not be reported based
the category. The five layers of classifications are
1. RA- Reportable accident
2. NRA- Non reportable
accidents
3. FAI- First Aid injury
4. Near miss incident
5. Unsafe condition/Act

!29
Reportable Accident
A reportable accident is an accident with serious injury. With serious injury is meant death (within a
year after the accident), permanent injury and injury with hospitalisation within 24 hours and for 24
hours (or a night).
This means that an accident resulting in a broken leg and a day-visit at the hospital with the victim
recovering at home for 6 weeks is not a reportable accident.
(source: National institute of Public Health and the Environment, Ministry of Health, Welfare and
sport)

Non Reportable Accident

A non recordable incident is the workplace incident which does not involve death, injury or illness
that requires medical treatment beyond first aid, days away from work, restricted work, transfer to
another job, loss of consciousness, a significant injury or illness diagnosed by a physician or other
licensed health care professional. Non recordable incidents are those which are outside the scope of
Occupational Safety & Health Administration (OSHA) record keeping requirements.

First Aid Injury

First aid refers to medical attention that is usually administered immediately after the injury occurs
and at the location where it occurred. It often consists of a one-time, short-term treatment and
requires little technology or training to administer.

Near Miss Incident

Just miss incident with no injury and no property damage but having the potential to cause injury or
property damage under the slightly different circumstances.

Unsafe Condition
Includes unsafe work environment, defective tools, equipments, lack of machine guards, and poor
lighting.

Safe Act
An unsafe act, includes unmindful, horseplay, disabling or bypassing safety devices, failing to wear
PPE’s while on job.


!30
 2.4 Project Planning Department
It is one of the department in Ashok leyland, whose main role is to develop New Products or
increase the capacity of the existing project/product, and also do a projection in volume for 5 years.
The main feature of project planning is to do a Gap analysis in the manufacturing system.

Gap analysis flow chart



Proposals

Technical study

Commercial budgets

Investment committee

No
Approve/
Reject

Yes

Unit planning

Project charter

!31
 I

No

Approve/
Reject

Yes



Approval

Tracker

Product development New product

Programme team Outsource In-house manufacturing

The gap analysis starts with a Proposal of a new project or increase in capacity of the existing
project along with the technical study for the same. An approximate commercial budget is
presented for the approval from the Investment committee.
The investment committee consists of all the board members, and the meeting is held every year
and the project gets approved or rejected based on the analysis done by the board members.

!32
If the project is accepted, the information is passed to the financial team of Ashok leyland to
allocate the required funds for the project. Then the project information is sent to the Unit planning
department where the project requirements are prepared using a Project charter.

A Project Charter is a formal document that contains all the details of the project. It briefs about
the appointment of a project manager, establishes a project time line, assigns a summary budget
and documents key constraints and assumptions. This also specifies the project boundaries, its key
deliverables – and maintains the progress of the project as much as possible. It will specify the
requirements to satisfy the stakeholder’s expectations and their needs.

Project Tracking refers to the management of ongoing projects, which includes measuring and
reporting the status of project milestones, and activities required in achieving the pre-defined
project results. If the project tracker is for the existing project, the report is sent to the programme
team, who works on the recommended project. If the project tracker is for the new project, the
team has to decide whether to manufacture it in-house or source it from outside.

!33
Product outsourcing flow chart


 Product development by
Ashok Leyland

Drawing maturity

Product design

Supplier

Prototype

Product reviewed by Ashok

Leyland

Start of production(SOP)

The design team makes the draft for the product which needs to be outsourced. The draft goes
through series of drawing maturity named as stage 0, stage 1, stage 2 etc. Then the final drawing
is sent to the supplier. The supplier prepares the prototype and sends to the Ashok leyland. The
prototype is reviewed and assessed.

!34
 2.5 Quality Department

Ashok Leyland takes almost care to ensure that the products being sent to the customer is of the best
quality.
2.5.1 The need for Quality department in Ashok Leyland
• 95% of the Raw material is outsourced from Dealer
• Assembly/Manufacturing process is a long chain of complexity and hence failure at any stage will
lead to breakdown or injury to Employees.
• Poor quality product will create bad impressions at the customer end.

The quality department in Ashok Leyland is divided into three sub departments
Central quality department is made up of
1. Supplier quality department
2. Field quality department
3. Assembly quality department

The purpose of the supplier quality department is to

• Develop the process
Suggesting cost effective and defect free process for the supplier to achieve beurre economies
of scale
• Develop New tools
Tools that can be used for more than one operation and which can provide better cutting efficiency
• Improve tool life.
Company spends a lot for procuring new tools, and hence a better quality tool with good tool life
will reduce the burden on the company.

The purpose of the Field quality department is to

• Do warranty analysis
• Increase the lifetime of OEM’s
• Customer after sale-quality analysis
• Failed part analysis
!35
Softwares used for Field quality Analysis
• Excel
• Weibull
• Tableau

Assembly quality department

This department detects the flaws at the assembly process and enters the defects in Defect
Capturing App. Once the defects are captured, it is sent to the subsequent quality gates or VTS to
do the required changes. This defect capturing app is a centrally monitored application powered by
SAP.
Other functions of the Assembly quality departments is to Check the Process Capabilities and its
stability.

!36
 CHAPTER -03
INTERNSHIP ANALYSIS

3.1 Internship Responsibility

I was asked to visit the various shop floors and told to do a study on the basic functions and
working of each station.

3.2 Reporting
To Mr. Rex Peter, Senior Manager and to the HR Manager, Mr. Anil

3.3 Knowledge gained

This is the first Time I'm visiting all the shop floors of a mass manufacturing company. I learnt a lot
about the functions of Central quality department and project planning department.

3.4 Positive Feature

A. Employees were friendly and ready to help anytime.
B. No restrictions on visiting the shop floors of the company but except the few(Shop VII and
Shop III).
C. No restrictions on interacting with the employees of the company.
D. With the presence of Gemma chart in every corner of the shop floor, it was easy to get all the
. information about the operating efficiency of each department.

3.5 Scope for improvement

1. Timing was not sufficient. Every day all the interns were allowed to visit the company only for
3 hrs.
2. Transition time between the shop floor is time consuming.

3.6 Improvement process identified

Since each company has its own way of doing work, I felt everything is function as per the rules
and regulations. Already Ashok leyland is following Lean manufacturing and have Gemba
meeting everyday so all the flaws and improvements are taken care of to support kaizen
( continues improvement) process.

!37
 CHAPTER -04
MANAGEMENT THEORY

4. 1 Lean Manufacturing
• It is to work on eliminating waste (Muda) created through unevenness in work loads (Mura)
and overburden (Muri).
• This philosophy is derived from the Toyota Production System (TPS) and it focuses on reducing
the seven wastes in manufacturing process to improve overall customer value.
• It focuses on optimizing work flow through strategic procedures.
• Flexibility is required to allow production levelling (Heijunka) using tools such as SMED, but
this would require significant investment.
• Disadvantage of Lean Manufacturing : The concepts has to be learned by the employees who
develop the products and initiate processes that deliver value.
• The cultural and managerial aspects of lean are arguably more important than the actual tools or
methodologies of production itself.

4. 2 Continuous Improvement Process

• It comes from a Japanese word kaizen meaning "change for better". This literally means
improvement, one-time or continuous, large or small.
• This concept was given by Toyota.
• Humanise the workplace, eliminates over work (muri), and teaches people how to learn to spot
and eliminate waste in business processes.
• "The idea is to nurture the company's people as much as it is to praise and encourage participation
in kaizen activities." Successful implementation requires "the participation of workers in the
improvement.”

4.3 Gemba Walk

• Comes from the Japanese term "genchi gembutsu" also known as management by walking
around(MBWA).
• The gemba walk, much like Management By Walking Around (MBWA), is an activity that
takes management to the front lines to look for waste and opportunities to practice gemba kaizen.
• Gemba walks denote the action of going to see the actual process, understand the work, ask
questions, and learn.
• It allow leaders to identify existing safety hazards, observe machinery and equipment conditions,
ask about the practiced standards, gain knowledge about the work status and build relationships
with employees.
• The method bears much resemblance to the time and motion studies of Frederick Winslow
Taylor.

!38
4.4 5s (House Keeping)
• 5S is a workplace organisation method that uses a list of five Japanese words: seiri, seiton, seiso,
seiketsu, and shitsuke.
• It is the precursor to Just in Time manufacturing.
• 5S is the foundation of all improvements and is the main component of creating a
Visual Workplace.
• A 5 S program focuses on having visual order, organisation, standardisation and cleanliness.

Japanese English
Seiri Sort
seiton Set in Order
seiso Shine
seiketsu Standardised
shitsuke Sustain

• The results you can expect from a 5s program are

• improved profitability,
• efficiency,
• service.

!39
 CHAPTER -05
REFLECTIONS

1 . Yes, I have achieved the desired expectations from this internship. I was looking for a company
which doesn't force things on me. The management allowed me to be the same, at all times. I
enjoyed visiting especially the quality team and project team.

2. Yes, I have leaned a lot about my character in this internship. I had never been late to the
company or nor wasted time roaming un-wantedly. With respect to my ethics, interns in Ashok
leyland were not allowed to carry camera phones inside the company. I would be one of the very
few to follow this rule.

3. I was little apprehensive to start a conversation with the employees at the beginning. So I should
work on this aspect.

4. Yes, one of my favourite departments in Manufacturing company is the project planning. After
visiting this department in Ashok Leyland, I'm well prepared for my career in Project Planning. One
of the Project Planning employee thought me to use the the various charts which can be utilised
doing presentations. I would like to attach the chart which was taught to me.(PTO)

!40
!41