ii report- vrl & kfil
TRANSCRIPT
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Industrial Integration Report
on
KFIL, Hospet &VRL Logistics, Hubli
( 28th
October to 29th
October 2010)
Date of Submission : 15-01-2011
Submitted To
Prof E. Anand
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Acknowledgement
Any attempt at any level cannot be satisfactorily completed
without the support of learned people. We would like to express our
immense gratitude to Dr. Gopal Iyengar for providing us the golden
opportunity of industry visits. We are also thankful to Prof. E.Anand for
his constant support and motivation that has encouraged us to come up
with this report. We take this opportunity to thank all the faculty of
KIAMS for their invaluable guidance throughout our stay in KIAMS.
We are also grateful to Anirudh Phadnavis (Finance GM- VRL
Logistics) and Mr. Pavan (Junior HR Officer- KFIL) who have rendered
their whole hearted co-operation at all times for the successful
completion of this visit.
Contents
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1. Objectives of the Visit
2. Manufacturing Company- KFIL
2.1 Company Profile
2.2 Mission, Vision, Objectives & Values.
2.3 Company Data Captured in Balance Scorecard & Business
Excellence Model.
3. Service Company- VRL Logistics
3.1. Company Profile
3.2. Mission, Vision, Objectives & Values.3.3. Company Data Captured in Balance Scorecard & Business
Excellence Model.
4. Suggestions for future visits.
Objectives of the visit
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To have an interface with the industry.
To get acquainted with the practical application of the concepts of Balanced Score Card
and the Business Excellence Model.
To get a better understanding of the Business Excellence Model and the Balanced Score
Card.
To interact with the various functional heads of the respective manufacturing and service
companies and get to know the linkage of theoretical concepts and their application in the
corporate world.
An experience aimed at expanding our view about business and making us identify the
dimensions that require attention on our part.
To make us understand the roles and responsibilities of different departments in an
organisation and the differentiation and integration of the same.
The visit also helped us identify the sector and department which each one of us might be
more interested in joining in the future.
Manufacturing Company- Kirloskar Ferrous Industries Limited.
Profile of the Company
Kirloskar Ferrous Industries Limited (KFIL), which was incorporated on 10th September
1991 to manufacture pig iron and ferrous castings. Business areas of the company encompass
Grey Iron castings, S.G Iron castings, Steel Investment castings and Pig Iron. The product range
includes Grey Iron castings: 1 kg - 500 kg single piece weight, S.G Iron castings: 1 Kg -70 Kg
single piece weight, Investment castings: 1 gram-1 Kg single piece weight and Pig Iron: Foundry
Grade, S.G. Iron Grade & Basic Grade. For the producing the all above, the company having two
manufacturing units in Bevinahalli Village (Near Hospet) and Solapur.
KFIL had entered into a technical collaboration with M/s. Tata Kort Engineering Services
Ltd in March of the year 1992 for its business purpose. The Company's commercial production
of Pig Iron from Mini Blast Furnace I and 3.5 MW Power Plant-1, using Blast Furnace Gas were
started in the year 1994 and in the identical year, KFIL had issued Initial Public Offer. The
commercial production of Grey Iron castings came to line in the year of 1995. In the same year
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of 1995, KFIL had started to produce Mini Blast Furnace II. The company had obtained an ISO
9002 certification. The Company's 3.5 MW Power Plant-2 was installed in the year of 1997. In
1997, Turbo Generator II was taken on lease with a capacity for the generation of 3.5 MW of
power using Blast Furnace Gas. TG - II was taken on lease. After a year in 1998, the company
started supply of TG power to foundry.
During the period of 1999-2000, KFIL had entered into a long term contract for pig iron
with an institutional buyer and also secured a sales tax exemption for further two years. During
the year 2000, the company entered into financial restructuring with IDBI and with other
institutions namely IFCI, IIBI, GIC, OIC, LIC and NIA. In 2001, KFIL had received an ISO
9002 certification. After a year, in 2002, an ISO 14000 certification was handed over to the
company. KFIL had entered into one time settlement with Financial Institutions for the
repayment of the high cost Loans in the year 2003. An ISO / TS 16949:2002 certification was
added to the company's quality list in the year of 2005. KFIL had purchased the MBF II and TG
I, II in the year 2006 for its various purpose, which were earlier taken on lease. During the year
2007, the company had acquired Solapur foundry from Kirloskar Oil Engines Ltd and also Hot
Blast Stoves project for Mini Blast Furnace -1 was commissioned.
Year of Establishment - 1992
Total Area - 289 Acres
Percentage Area covered - 35 %
No. of Employees - 820
Products - Pig Iron (Basic, Foundry & S.G.Grade) - Grey Iron
Castings
Turnover for 2007-08 - Rs. 640 Crores
Mission
To become a cost effective pig iron manufacturer &to enhance production capacity – from
240,000 tons to 425,000 tons by 2010
To enhance casting manufacturing capacity – from 84,000tonsto 130,000 tons by 2010.
To move towards machining and assembly
To capitalize on export potential in casting business
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To move up the value chain by adding steel manufacturing
To become energy self sufficient through co-generation of power
To continue to work towards Cleaner Environment
Vision
To be a world class product leader through the state-of-the – art manufacturing
technologies & processes
Objectives
To increase market share in all markets that are present.
To Increase the share in auto components (due to investments made in capacity
expansion), Medium Engines for Stationary and Agri (Tractor) Use, and Large Engines
for Stationary (Power Generation) .
The major thrust is to “Drive Down Cost” to retain competitive edge.
To achieve reduction in coke consumption by 80 kg/thm
To achieve productivity increase by 15% & coke consumption reduction by 4% for
foundry grade & 32% productivity increase & 11% coke consumption decrease for basic
grade
To completely utilize Blast Furnace Gas available from the process
Values
To achieve the mission and vision, KFIL would pursue following values:
Customer Orientation.
Vendor Development (Critical link in the business)
Development of Human Resource (Trust, Positive attitude, Integrity, Team-Work,
Respect for individual, concern for quality, cost, 5S, Safety, a personal habit, Being
proactive, Solving problems, Networking, Working for WIN-WIN agreements,
continuous improvement and result oriented)
Process & Product excellence.
Responsible corporate neighbor
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Company Data captured in Business Excellence Model and Balance Scorecard Model
Leadership
Excellent leaders develop and facilitate the achievement of the mission and vision. They
develop organizational values and systems required for sustainable success and implement these
via their actions and behaviors. During periods of change they retain a constancy of purpose.
Where required, such leaders are able to change the direction of the organization and inspire
other to follow. They are responsible for:
1. Leaders develop the mission, vision, values and ethics and are role models of a
culture of excellence.
2. Leaders are personally involved in ensure organisation’s management system is
develop , implemented and continuously improved.
3. Leaders interact with customers, partners and representatives of society.
4. Leaders reinforce a culture of excellence with organisation’s people.
5. Leaders identify and champion organisational change
The company is under the efficient management headed by
Chairman- Atul C Kirloskar
Director- Sanjay C Kirloskar
Managing Director- R V Gumaste
Board of Directors- A R Jamenis
- C V Tikekar
- S N Inamdar
- S G Chitnis
- A N Alawani
People
Excellent organisations manage, develop and release the full potential of their people at
an individual, team based and organisational level. They promote fairness and equality and
involve and empower their people. They care for, communicate , reward and recognize in a way
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that motivates staff and builds commitment to using their skills and knowledge for the benefit of
the organization.
People resources are planned, managed and improved.
People’s knowledge and competencies are identified, developed and sustained.
People are involved and empowered.
People and the organization have a dialogue.
People are rewarded, recognized and cared for.
1. Employees
In accordance with our mission of 'DESTINED TO SCALE NEW HEIGHTS' we
strongly believe that, a satisfied employee is an unadvertised asset of a company. Hence, we at,
Kirloskar Ferrous Industries Ltd., are committed to bind the organization with a common
purpose, a common mission and common values so as to continuously upgrade quality of work
life of our employees through:
Creation of good working environment and shared accountability for quality,
safety and knowledge.
Adoption of improved work practices to foster the intellectual capital.
Develop people with high degree of enterpreneurability and leadership qualities.
Develop emotional togetherness for strong ownership.
Defining the role & responsibilities of employees to generate empowerment and
right leadership.
Encouraging teamwork, participation & involvement to effectively deal with
negative residues.
Development of personnel to create knowledge tank and a learning base to defeat
competition.
Recognize performers through rewards and recognition.
2. Customers
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Mahindra & Mahindra , Kirloskar Oil Engines Ltd, Escorts , TAFE, SIMPSON ,
Tata Motors Ltd, EICHER , CARRARO, Toyota Kirloskar Auto Parts KNORR -
BREMSE etc.
AUTOMOBILE
– Mahindra & Mahindra Ltd.
– Tata Motors Ltd.
– Toyota Kirloskar Auto Parts
– Eicher Motors Ltd.
TRACTOR
– Mahindra & Mahindra Ltd.
– Escorts Ltd.
– Carraro India Pvt. Ltd.
– TAFE
ENGINE
– Kirloskar Oil Engines Ltd.
– Simpson & Co. Ltd
3. Attitude towards the Society
1. Social Welfare
As a philosophy, we have an objective concern for the welfare of the
society to restrain individual or corporate behavior from ultimately destructive
activities, no matter how immediately profitable and to lead in the direction of
positive contributions to the human settlement. We as an economic unit within the
society, irrespective of profit / loss, consider our duty to repay the debt towards
the society. Our social contribution goals:
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To achieve the company’s mission, the finance team endeavors for realisation of
values of the company by meeting the requirement of:
Financing capex & support business growth through innovative finance
tools.
Employees.
The government exchequer.
Banks & financial institutions.
Customers & suppliers.
Promoters & stakeholders.
2. HR Policy
In accordance with hrm mission of “destined to scale new heights”, k fil strongly
believe that a satisfied employee is an unadvertised asset of a company. Hence kfil, are
committed to bind the organization with a common mission and common values so as to
continuously upgrade quality of work life of employee.
Creation of good working environment and shared accountability for
quality, safety and knowledge.
Adoption of improved work practices to foster the intellectual capital.
Develop people with high degree of entrepreneur ability and leadership
qualities.
Develop emotional togetherness for strong ownership.
Defining the role & responsibilities of employees to generate
empowerment and right leadership.
Encouraging teamwork, participation & involvement to effectively deal
with negative residues.
3. Marketing policy:
“In the direction of achieving the company’s mission, the marketing team- pip
endeavors for maximization of sales and realization for the company’s product while
meeting the customer’s requirement to their all round satisfaction”.
Strategies
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Maintaining quality leadership
On – time delivery
Strong dealership network
Customer orientation
Customer driven
Performance tracking of competitors
4. Quality assurance department
The company is committed to achieve total customer satisfaction through
adoption of state of the art manufacturing technologies and process with continuous
improvements. The company is also committed to improve quality of work life of its employees
through improved work practices.
Partnership & Resources
Excellent organisations plan and manage external partnerships, suppliers and internal resources
in order to support policy and strategy and effective operation of process. During planning and
whilst managing partnership and resources they balance the current and future needs of the
organisation, the community and environment.
External partnership are managed.
Building, equipment and materials are managed.
Technology is managed.
Information and knowledge are managed
1. Major Business Partners
Pig Iron:
o Electrosteel Castings
o Texmo Industries
o Rajkot Engg. Association
o Laxmi Machine Works
o Menon Pistons Ltd
o Punjab Tractors Ltd
o Sriram Pistons & Rings Ltd
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o Kalyani Steels Ltd
Foundry:
o Automobile
Mahindra & MahindrA
Telco
Maruti Udyog Ltd
o Tractor
Escorts
Carraro
Tafe
Punjab Tractors Ltd
o Engine
Kirloskar Oil Engines
Simpsonf
Swaraj Engine
2. Resources
Materials & Suppliers
1.Grade sand - Mangalore minerals
2.Iron ore - V.S. Laad & sons
- National minerals development
- Rajalaxmi minerals
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- Guru Rajendra minerals
3.Low grade iron ore lumps - Rajapur minerals
- Bellary mining corporation
4.Low grade sponge iron - Hospet Ispat Ltd,
5.Merallurgical coke - Adhi global pvt Ltd,
- IMR metallurgical
6.Lime Stone - Sharada cements
- Vaadhiraj minerals
7.Dolomite - Vaadhiraj minerals
8.Scrap bundle - Mysore enterprises
Processes
Excellent organisations design, manage and improve process in order to fully satisfy , and
generate increasing and other stakeholders. Processes are improved, as needed, using innovation
in order to fully satisfy and generate increasing value for customers and other stakeholders.
Products and services are designed and developed based on customer needs and expectations.
Products and services are produced, delivered and serviced. Customer relationships are managed
and enhanced.
1. Production Department
An innovative technology from KTS (KORF Technological Sidervrgica Ltd.) Brazil
has helped KFIL to design and develop a MBF has come a long way and has enabled many
entrepreneurs to produce more than 500 MT of Pig Iron world over. KFIL is among the first
in India to adopt this state of art technology with computer controls to produce consistent
quality of Pig iron. KFIL also boasts of a record of projects completion of electing the first
MBF with in 18 months and second MBF within 9 months. It has got uniform crystalline
pearl tie structure it is slag free and made from the riches grade of iron ore and imported
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coke. It is supplied to KFIL valued customer of the engineering industry who cater to
automotive, tractor, textile, pumps, and spun pipes segments as well as the steel industry.
2. Purchase Process
3. Finance Department
P
FloatEn uir
Vendor
Master
Existing
Vendor
Source
Vendor
Approve
Vendor
Create
Vendor Negotiation
Quotation
IPurchase
Order Supplier PO
Import
?O
Finalize
Vendor
Existing
Vendor
Yes
No
Yes
No
Yes No
Amend
Purchase
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One of the most important departments in any organization is its finance
department. If this department is not well operated, the whole organization activities will
be ruined. KFIL`s finance department functions are as follow:
Functions:
o Preparation of master budget.
o Maintenance of accounting records.
o Preparation of final accounts.
o Payment and cash management.
o Funding Activity
o Internal audit.
4. Human Resource Department
In short HR is a resource, which is of immeasurable value for an
organization. The HR department is entrusted with vital function of keeping employees
happy and thus assisting in enhancing the productivity of the company. Any organization
with manpower as its chief capital is a treasure move of talent. The HRM department at
KFIL considers the employees the best foremost and major resources of the company.
Upliftment of employee growth is at center of organization philosophy of growth whichaims at providing a career in which the individual can make the maximum contribution of
employee’s common ender and at the same time better their living standard. The primary
functions of this department at KFIL are as below:
o Recruitment
o Selection
o Interview
o Placement
o Wage and salary administration
o Training and development
o Performance appraisal
o Promotion and transfers
o Human resource planning.
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o Administration and welfare activities consisting of canteen and medical.
o Submission of periodicals and reports to statutory authorities.
o Ensure quality assurance system.
o Formulating and Implementing leave records of employees.
o Processing medical benefit applications.
o Processing of wage and salary of all employees.
o Implementing disciplinary action on employee.
5. Marketing Department
The marketing department is mainly focusing on the activities of Marketing
products, Pricing, Promotion and Distribution of products. These activities collectively
called as 4 Ps in Marketing.
Products: The Company has following products in its Product Line.
They are:
1. Basic Grade Pig Iron.
2. Foundry Grade Pig Iron.
3. Spheroid Grade Pig Iron.
Pricing: The name “Kirloskar” itself is the mark of quality for the customer.
The company has left the opinion of transporting Pig Iron to the Buyers site to the
Buyer. So one can buy the Pig Iron at the Company’s Site or can order.
The company has come across different Prices terminologies. They are:
o List Price
o Discount
o Allowance
o Payment Periods
o
Credit TermsPromotion: The company has appointed number of dealers throughout India
for its marketing purpose. Each dealer will get Rs. 100 PMT, as commission for the pit iron is
sells.
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Credit notes are given to these dealers for their commission. Pig iron is also sold on credit
as one of the promotion tools to attract customers. Credit time depends on areas (less credit
period is for North Zone) and order they give.
Distribution: The company has got distribution network spread allover India in
form of dealership and also through company’s employees, the company has divided its
market into 7 Zones:
Zone A Karnataka Belgaum, Shimoga, Bangalore
Zone B Andhra Pradesh Hyderabad, Vijaywada
Zone C Maharashtra Kolhapur, Pune, Mumbai, Nagpur, Solhapur
Zone D Gujarat Ahmedabad, Rajkot, Surat
Zone E Rajasthan Jaipur
Zone F Delhi Delhi, Faridabad, Zodhinoor, Agra
Zone G Tamil Nadu Chennai, Coimbatore, Mudurai
6. Quality Assurance System
The company is committed to achieve total customer
satisfaction through adoption of state of the art manufacturing technologies and process
with continuous improvements. The company is also committed to improve quality of
work life of its employees through improved work practices.
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BALANCED SCORE CARD
End customer
Value creation corporatecitizenship
Culture & Climate for action continuous
improvement
Strategic competencies
Grow
international
business
F
N
AN
C
A
LBe a dominant
player in domestic
market in all
segments
To be the leading
manufacturer of pig iron
castin s.
Enhance value for
channel partner
Revenue
growth
C
U
S
T
O
M
E
R
Increase accessibility for
customer
Enhance customer satisfaction through
reliable, cost effective, safe and good
value product and service
Enhance product
offering
Reduce the cost of
casting process and
making efficient
operations.
P
R
O
C
E
S
S
L
E
A
R
N
N
G
Enhance
employee
satisfaction
Align Employee
to company
strategy Create high
performance
culture
amongst
employees
Excel in
corporate
governance
social
responsibility
Design &
Development
Manufacturing and
Vendor management Sales &
Marketing
Identify and acquire
information
technology in line
with company
Develop strategic
competenciesExcel in the
journey to
excellence
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Over the years VRL has pioneered in providing a safe and reliable delivery network in
the field of parcel service. It has spread its operations to Courier Service, Express Cargo & Air
Chartering to meet the growing demand of the burgeoning customer base. 3PL & Warehousing
solutions offered by VRL are tailor-made and cater to unique needs of various customers of the
industry. With the largest network in India, the VRL parcel service is indispensable for large
number of corporate houses. This network spans the length and breadth of the country and is
supported by large number of transhipment hubs. VRL operates through a network of 859
Branch and franchisees to cater its valuable customers.
Mission
o To provide the highest quality service to our customers by continuously increasing cost
efficiency and maintaining delivery deadlines.
o To encourage our employees / workforce to strive for quality & excellence in everything
they do.
o To promote team work and create a work environment that takes care of talent and
brings out the best in our employees.
Vission
o To become the premier company that cuts across various segments and emerges
as the torchbearer of each segment that the Group ventures into.
Corporate Social Responsibility
o Our corporate integrity is a critical asset and we are committed to upholding it in
everything we do. We share our expectations and opinions and strive to maintain
a workplace built on mutual values, trust and goodwill & we continue to embed
these ethical standards in our business environment. Noteworthy is the Vignyan
Yog Shivir that we organized that was conducted by Param Pujya Ramdevji
Maharaj which was attended by more than 10,000 people across the state
Objectives
Objectives of the company
• To increase the market share of “VRL”.
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• To be responsive to the consumers & channel members, so as to be
competitive in
the market.
• To streamline the marketing opportunities
• To ensure competent & willing work force of organisation.
• To maintain good relationship between the employees & the employers.
• To maintain good industrial relation.
• To assist employees in attaining their personal goals so as the organisational
goal
• Enhance the individual contribution to the organization
• To help individual growth
• To select right position for right person & number of employees
The Objectives Of Luggage Section
• Delivering the goods within scheduled period by increasing the speed of
distribution.
• Providing services all over the country.
• Security and reliability in service.
• Providing value added services to the customers.
• Customer care
Finance Objectives
1. Maintenance of liquid assets
2. Profit maximization
a) Increase in revenue
b) Controlling costs
c) Minimizing risks.
3. Wealth maximization
Objectives of the Organization
• To gain all around views of management operations
• To understand the work culture
• To integrate practical experiment with theoretical concept
• To assimilate and understand the function of each department in the organization
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• To develop necessary interpersonal and managerial skills
Company Data captured in Business Excellence Model and Balance Score Card Model
LeadershipExcellent leaders develop and facilitate the achievement of the mission and vision. They
develop organizational values and systems required for sustainable success and implement these
via their actions and behaviors. During periods of change they retain a constancy of purpose.
Where required, such leaders are able to change the direction of the organization and inspire
other to follow. They are responsible for:
1. Leaders develop the mission, vision, values and ethics and are role models of a
culture of excellence.
2. Leaders are personally involved in ensure organization’s management system is
develop, implemented and continuously improved.
3. Leaders interact with customers, partners and representatives of society.
4. Leaders r einforce a culture of excellence with organization’s people.
5. Leaders identify and champion organizational change.
Business Ethics
We very strongly believe that “rules are not meant to be broken” but “rules are meant to
be followed”. This belief of ours strengthens our commitment to offer services that put our
clients and us in a “win-win” situation. We believe, it is better to be “Fair” than to be “Good”.
Service Policy
To offer, high quality Air-charter service, to each and every customer, during every
single flight operations, be it pre-flight, in-flight or post-flight. We are committed to offer quality
service, as expected by our customers and match upto their expectations, time after time, every
time.
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Safety and Comfortable Standards
To maintain our aircraft, pilots and human resources in absolute ready condition, to offer
safe and comfortable flight experience to our customers, through timely maintenance of the
aircraft, keeping the aircraft in Airworthy condition and training the pilots and executives, as per
civil aviation requirements
Administration:
Chairman and Managing Director- Mr. Vijay Sankeshwar
Managing Director- Mr. Anand Sankeshwar
Independent Director - Mr. Sudhir Ghate
Mr. C. Karunakara Shetty
Mr. J. S. Korlahalli
Mr. Prabhakar Kore
People
1.
EmployeesPeople are the main resources of all productive efforts in every organization. It is
assumed and accepted that human resources are the main component of an organization and the
success & failure of the organization depends on how effectively they are managed. Acquiring,
terminating, developing and properly using the human resources in the organization is essential
for accomplishing the organizational activities.
Currently the total number of permanent employees in vijayananda travels
Particularly in Bangalore division is 270. As vijayananda travels has to work for the whole day,shift system is maintained. The employees work in three shifts. The shifts and their timings are
1. Shift from 6.00 a.m. to 2.00 p.m.
2. Shift from 2.00 p.m. to 10.00p.m
3. Shift from10.00p.m to 6.00 am
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ORGANISATION CHART OF VRL LOGISTICS
2. Attitude towards Society
Quality Conscious
The efficiency of our fleet of vehicles hinges on our all inclusive state-of-the-
art workshop cum service complex at Hubli (Karnataka). Every vehicle of our fleet
passes through this master service facility so that they are at peak levels of performance, leading to better cost efficiencies and time management.
Centralised Operations:
Manager
of Safet
Sr. Manager
of GA
Manager
of HR
Manager
of PMU
Assistant Officer
Sr. Officer HR &
IR
Officer of HR &
IR
Sr. Officer of
Caterin
Civil
En ineer
G.M. HRM & GA
Manager of
Environment
Dy.Manager
-Admini
Assistant-
OfficerEngineer of
Environment
Assistant-
En ineer
Assist Officer
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At the core of the groups transport business is its 43 acre transport cum
warehouse complex in Varur, Hubli. This unique facility has all the essential back up
services under one roof. This complex contains the Head office Building,
Transhipment Godown, Workshop, Canteen, Drivers Rest Room, own Diesel Bunk,
Praking area etc.
Non-Conventional Energy
The journey over the last three decades was challenging and we have become
more innovative. Our Wind Energy project of 42.5 M.W. has been successfully
commissioned. CDM board has granted registration to this project under UNFCCC.
VRL is now eligible to trade in Carbon Credit
Policy & Strategy
Business Strategy
In order to capitalize on volume growth as well as key ongoing trends in the
Indian freight and passenger transportation industry, the following are the key components of
our operating and growth strategy:
• Increase freight density in the existing system
• Expansion of passenger transportation business in India
• Selecting profitable routes for our passenger transportation business
• Focus on the attractive market for LTL services
• Continue to focus on operating efficiency by establishing high-capacity transhipment
hub.
• Focus on serving a diverse, underserved customer landscape
• Maintain our commitment to time bound service, safety and quality.
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Policies
• A nationally established transportation company
• Proven track record in the transportation business
• Large and established size and scale of operations
• Young fleet of vehicles in the passenger transportation business
• Low dependence on hiring third-party vehicles in the goods transportation business
• Strong in-house capabilities
• Differentiated operating model
• Experienced and motivated management team
• Ability to recruit and retain highly experienced and professional drivers
Partnerships & Resources
From the tarmac to the skies... VRL has set off on a new journey. VRL has acquired a
brand new, Premier jet 1A aircraft, manufactured by Hawker Beechcraft Inc, USA. It offers
luxurious comfort and the freedom to fly at a whim. This coupled with the legendary VRL
lineage, this venture will certainly touch the skies.
Processes
The company operates its travel based upon following two segments. They are
Fixed bus operations.
Casual bus operations.
Fixed Bus Operation
Under fixed bus operations the company makes its operations without any
alterations i.e., buses are operate as per pre determined schedules at fixed routes, but are
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changed only when there is no demand for buses in these routes or uncertain things that
may occur as usual course of business.
Casual Bus Operations
Under casual bus operations the company gives buses for rent to satisfying
customer’s needs like marriage functions, trips & other occasions
Ticket Formats Maintained By Vijay-anand Travels:
The company is maintaining three formats of tickets. They are
Company’s copy.
Customers copy.
Accounts copy.
Product Profile
The Product Profile of Vijayananda Travels is classified into following groups.
Based Upon The Seating Capacity:
Buses Types
Capacity
Based Upon Varieties Of Coach:
Departmentation at Vijayanand Travels:
Departmentation is the process of grouping the various activities into separate
units of department. A department is the district section of the business establishment
concern with a particular group business activity of like nature. In business units
department is necessary for sub dividing the activities and easy reference.
Departmentation in vijayanand travels is done on the basis of functions i.e.
grouping of the activities into major functional departments. Company is having different
departments in each branches depending on function of those branches. There are five
departments in Bangalore branch.
These departments are
1. Human resource department
2. MIS department
3. Marketing department
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4. Finance department
5. Information technology department.
Human Resource Department
The principal component of an organisation is its human resources or its
people at work. Human resources have been defined from the view point of the
organization “it is the sum of total of all the knowledge, skills, inherent& creative
abilities, talents aptitudes & the knowledge acquired of its employees.
Therefore human resource is having at most importance in an organisation as
most of the problems in organizational settings are more human and social in nature
rather than being physical, technical, or economical.
Thus human resources are the most valuable & unique assets of an
organization. The successful mgt. of organisation human resources is an exciting
dynamic &challenging task especially at a time when the world has become a global
village & economics are in a state of flux. The scarcity of talented resources & the
growing expectations of modern day worker have further increased the complexity of
human resource function.
Even though specific human resource functions/activities are the
responsibility of the human resources department. The actual management of human
resources is responsibility of all the managers in an organisation. It is therefore
necessary for all manager to understand & give due importance to the different
human resources policies and activities in organisation.
Human resource department deals with human relations & legal activities. It
is the people who make organization”success or allow is to be HRM management in
the life and wealth of organisation”.
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Manpower planning at VijayAnand Travels
The HOD of HR is required to fill the prescribed manpower requirement form and
submit it with the detailed job profile for the particular post. The HOD shall forward the
same for the approval of the managing director before handling the further processing.
Manpower resources for VijayAnand Travels
The major sources for manpower, for vijayanand travels includes
1. Extract from data bank.
2. Release of advertisements in leading newspapers.
3. Campus selection.
4. Employee referrals.
Selection Process at Vijayanand Travels:
1. Fresher:
Fresher are required to take up a written test before actual interview. The Interview panel
interviews the short listed candidates.
2. Candidates With Experience:
The members in experienced candidates panel is short listed and then called for final interview.
3. Senior Level Members:
In the case of engineers and for senior’s position in the company the Interview panel shall consist
of MD/GM along with other members. Weighted average of the scores is taken and the candidate
is selected.
4. Recruitment:
Recruitment has a direct appointment at VRL. It is done on the basis of CMD’S discrepancies.
Performance Appraisal:
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Performance appraisal is done periodically by promoting and transferring employees on the basis
of their experiences.
Attendance:
Attendance is recorded in registers and maintained to check the regularity of employees.
Trade Union:
There is no trade union existing at Vijayanand Travels.
Compensation:
On the basis of CMD”S (chairman-cum-managing director) discrepancies the compensations are
determined.
PF, ESI:
12.33% of employee’s salaries are paid towards PF and gratuity. ESI is included as medical
reimbursement facility.
Fringe Benefits:
There are no extra fringe benefits paid to their employees at vijayanand travels.
Training Facilities At Vijayanand Travels.
In rapidly changing society, employee training and development is not only an
activity but it is desired. Training helps the peoples to improve their skills and
knowledge to cope with the requirements.
Vijayanand travels believe in continuous orientation of members to create
atmosphere that is for the fulfillment of specified objectives.
On The Job Training Method:
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It is on the job training provided by the supervisors at Vijayanand travels. There is no extra
programme conducted to impart skills, but the employees are assigned to task as soon as they
appointed to their positions.
Leave:
Leave is calculated as sick leave and casual leave. Leaves are not encashed but they are
forwarded to next year working days.
MIS Department
Vijayanand travels have well equipped information system, which serves the
information needs of the company. Local area network (LAN) connects the computers. The
operating system used is windows 2000, and various applications used are,
Customer Relationship Management(CRM)
Enterprise Resource Planning(ERP)
MS-OFFICE
SAP
The skill required to operate the applications varies depending upon the functions for
which application is used. This department provides required information for all the departments
as and when demands. The efficiency of whole organisation is solely depends on, how well its
information resources are maintained.
Organisation Structure Of MIS Department:
GM (MIS)
ASSISTANT
CLERK
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Marketing Department
As markets change, so does marketing. Marketing is no longer a company department charged
with a limited number of tasks. managing advertising sending out direct mail, finding sales leads
providing customer service. marketing must does a company wide understand. It must drive the
company vision mission and strategic planning.
Marketing is about deciding who the company wants as its customers, which leads to
satisfy what products & services to offer what price to set, what communications to send a
receive what channels of distribution to use & what partnership to develop.
Marketing deals with the whole process of entering markets, establishing
profitable Position and building loyal customer relationship. This can happen only if all
departmental work together, engineering designs the right product finance furnishes the required
funds purchasing buys quality material, production makes quality products on time & accounting
measures the profitability of different customers, product & areas.
Marketing is a comprehensive and it includes all resources, and a set of
activities necessary to direct and facilitate the flow of goods & services, from producer to
consumer in the process of distribution. Marketing encompasses all activities of exchange made
by producer & middlemen in relation to trade for the purpose of satisfying customer demand.
Presently the Vijayanand travels are vested with the responsibility of
marketing its products under the corporate brand name of “VRL”.
Objectives
To increase the market share of “VRL”.
EMPLOYEES
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To be responsive to the consumers & channel members, so as to be competitive in the market
To streamline the marketing opportunities.
Agents Strength:
This VIJAYANANDA TRAVELS is having more than 1700 agents in and around the
Bangalore. The agents run business based on commission basis. The company’s standard
commission is 10% on the total amount of the Passenger Tickets and 20% on the total amount of
languages booked by the agents. The agent must have a fixed deposit or bank guarantee for Rs
50,000/-, and the business done by him much suit the requirements of Vijayananda travels to
serve its customers.
Marketing department of vijayanand travels are classified as 2 different sections like,
1. Luggage section
2. Travels section.
Luggage Section:
The marketing manager executes this department. Under his control 10 booking
clerks are working. They are working towards meeting the customer satisfaction needs, by
providing speedy and safe delivery of cargos like documents, packages, samples, Exhibition
material etc.
The company transports goods -and services, either through paid basis or to
pay basis. (Paid basis refers to the process where in customer has to pay the transportation
charges in advance before delivering the goods. To-pay basis refers to the process where in the
customer pays transportation charges after goods delivered.)
Structure Of Charges:
The vijayanand travels will charges different prices for its services depending upon the size of
the goods transformed. They will charge Rs 20, if the documents are below the minimum
standards weights prescribed by the company. These charges will vary if documents exceed
minimum size.
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For parcel boxes they will charge Rs. 2 per kg. This rate is fixed even though the size of order is
small or big.
The Objectives Of Luggage Section:
Delivering the goods within scheduled period by increasing the speed of
distribution.
Providing services all over the country.
Security and reliability in service.
Providing value added services to the customers.
Customer care.
Travels Section:
Structure of travel section in Vijayanand Travels resemble as follows.
CUSTOMER CARE
ACCOUNT
SECTION
CONTRACTORY
BOOKING
PARCEL BOOKING
TICKET BOOKING
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The general manager of travels heads this department. And this general manager having the
following responsibilities. They are as follows.
1. He has to inform the head office regarding all the activities pertaining to travels
department in Bangalore division.
2. He is responsible to solve the consumer grievances and conflicts immediately as and
when they occurred.
3. Before taking any decision regarding company matters he has to consult head office.
If any loss occurred because of his negligence, he has to bear those losses
from his pocket.
The Vijayanand Travels is developing effective use of information technology. Right from the
pick up point, the precise status of the consignment needs are monitoring at every stage of its
distribution channel.
Structure Of Charges:
Rs 1800/-per day is charged if the total distance is traveled is within 100 kms. If the travelled
distance is more than 100kms, then charge will be calculated as per km.
Promotional Activities:
The budget for the promotional activities by vijayanand travels is set on the basis of “objective &
task method”. Such budget is more advantageous as it well planned on the basis of objectives to
be achieved, and the tasks involved there in.
Distribution Channel:
The distribution channel of vijayanand travels is very simple. It includes only
the agents, who bridge the gap between vijayanand travels & its consumers. These are selected
TRAVELS
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on the basis of their location in the city or town where company operating its business . The
agent must have a fixed deposit or bank guarantee for Rs 50000/-& the business done by him
much suit the requirements of Vijayanand travels to serve the ultimate customers.
Information Technology Department:
The information technology division of VRL is located in Varur. This division oversees the
information technology of the VRL, including the computerizing of their branches, hubs and
officers.
The computerization of the hubs has facilitated mailing of delivery reports and quick flow
of information between different offices, delivery offices, and the transphirent hubs of the
company this enables effective coordination and tracking of the consignment.
The information technology department prepares software which are hardware related such
office automation-related, courier tracking and accounting software.
Global positioning system (“GPS”)-VRL developed their own GPS based tracking device which
VRL installed in selected devices. In addition to keep track of the movement of the vehicles , the
GPS system also tracks the time spent by the vehicles when not in motion, the location it has
stopped in addition to traveling pre assigned route to be followed by the vehicle.
This discourages their drivers from not complying with the instructions given to them regarding
the route and time sheets that they are required to comply with.
Most of the software requirements are met in-house and in the event that any activity is
outsourced by the company. The source code is retained by the company to ensure that it can be
used at the later stage as per the requirements of the company.
Important Developments Of Information Technology Division Are:
1 .Vehicle Maintenance Tracker- This application schedules the maintenance of the entire fleet
and generates reminders helps in avoiding the premature failure and the excees consumption of
parts.
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2. Vehicle Traffic Application:-This application controls the entire movement of the vehicles
and keep tracks the driver’s performance in terms of the fuel average and distance traveled. This
also tracks the advance amount paid to the drivers and the diesel vouchers issued for an route
fuelling. This application online and ensure access to this data from any part of the world.
3. Consignment Delivery Application:-This application is used in delivery branches to raise
online cash receipts and track the consignment. This application also maintaince a record of the
stock in our company’s godown and it is used to answer queries from the customer regarding the
arrival of consignments. The records of tracks and delivery particulars are updated every 24
hours.
4. Hub Applications: This application receives the consignment from other hubs and booking
branches and dispatch them to the final destination and some time reroute to other hubs.
5. Online Bus Ticket Booking System:-This application hosted online on their web server and
agents and passengers log on to this application for booking passenger tickets.
6. Remote access to networked computers:-: This application enables their company to take
remote access of any computer system linked to the networks. This facility is used for
monitoring the operations of their employees and also for conducting training sessions for the
employees in remote locations
Finance Department
“Finance is to business is as blood is to human” Finance is defined as fund
where as business is defined as an activity controlled with planning raising controlling &
administering of fund used in the business.
In business undertaking or an educational institution or in a hospital or in
an art society or elsewhere management of funds is the primary concern of financial
management.
The modern thinking in financial management today is that financial
manager does not perform the role of score keeper of financial data & information & arranging
funds whenever directed to do so. Rather they occupy key position in top mgt. And play a
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dynamic role in solving complex management accords a far greater importance to management
decision making and policy.
Due to liberalization privatization & globalization the subject of financial
management has been changing at a rapid & pace & it has acquired a critical significance now a
days.
The basic requirements for an organisation for its survival & existence are fund
or finance. Financial management is concerned with the managerial decisions that results in
acquisition & financing long term & short term funds. It deals with the acquisition of specific
assets the selection of specific liability as well as size & growth of enterprises.
Finance department is concerned with the essential finance activity for organisation to carry out
activities in effective way. This helps the organisation to achieve soundness in working &
dealing with others is required from the beginning of organisation & further for successive
stages.
OBJECTIVES:
A. Maintenance of liquid assets.
B. Profit maximization
1. Increase in revenue
2. Controlling costs
3. Minimizing risks.
C. Wealth maximization
The functions of finance department in Vijayanand Travels is been grouped
Under following heads such as,
1. Maintaining of cost accounts.
2. Planning of funds.
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3. Recording of the transactions.
4. Preparing of financial statement.
5. Evaluation of financial performance.
6. Arranging for internal as well as external audit.
The general manager of finance heads this department. Under his control there are 12
employees’ who handled entire financial transactions in Bangalore division. They will
maintain records to pertaining to Bangalore division only. Preparation of final statements of
whole company is done by the head office, which is situated in Hubli.
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BALANCED SCORE CARD
End customer
Value creation corporate
citizenship
Increase the market
share of “VRL”
F
N
AN
C
A
L
Revenue
growth
Wealth
maximization
Maintenance of
liquid assets
Profit
maximization
To be responsive to
the consumers &
channel members
Providing value added
services to the customers.C
U
S
T
O
M
E
R
Delivering the goods
within scheduled period Security and reliability
in service
Participate in
Corporate
Social
Responsibility
P
R
O
CE
S
S
Ensure competent& willing work
force of
streamline themarketing
opportunities
maintain good
industrial
relation
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Culture & Climate for action continuous
improvement
Strategic competencies
The balanced score card is a strategic planning and management system that is used extensively
in business and industry, government, and nonprofit organizations worldwide to align business
activities to the vision and strategy of the organization, improve internal and external
communications, and monitor organization performance against strategic goals.
We are designing the Balance score card for VRL Logistics. So we have taken their Main
objective at the top. Then we are seeing the financial perceptive to achieve that goal.
In the Financial perceptive we wrote the financial objectives of the VRL which are profit &
wealth maximization. So we mentioned those in the BSC. In this we are having 1 more that is
Corporate Social responsibility. How they are planning and achieving this.
Then we are looking into the Customer prospective which is more important to any organization.
So we are mentioning here how the VRL treats the customer and how they are servicing the
customer and how important the customer is for them. And what are measures they are taking for
Satisfying the customer.
After Customer prospective we are looking into the process following by the organization. Here
VRL following that getting skilled labor and using the market opportunities and to maintain a
good industrial relations to get good market share these are the things are having in their process
to achieve the organization goal.
And in the learning they are very much care about their employees and their needs. They are
assisting them in achieving the personal goals through which they can able to achieve the
Enhance the
individual
contribution
to the
organization
Assist Employee
to attaincompany goals
Enhance
employee
satisfaction
L
EA
R
N
N
GIdentify and acquire
information
technology in line
with company
Develop strategic
competencies
Excel in the
journey to
excellence
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organization goals. And the strategic competencies of the organization are they are having
software which was developed by the people who are working in their organization with a team
of professionals. By using the technology they are able to maintain the every data and they are
able to organize the many number of vehicles and many number processes.
Specific Linkages between Processes & Outcomes (in both models)
S.No. Processes Outcomes
1. No changes in scheduling. For example
service from Bombay to Bangalore
scheduled for all days of the week will
continue to run even if there are no parcels.
Through this process VRL logistics is able to
give continued service to the customers and
there are no changes in the schedules of
service.
2. Interrupted Service i.e. service from Bombay
to Bangalore would pick parcels from places
on the way like Hubli etc. if available.
Through this VRL logistics is able to cover
many places and hence able to provide the
customers broader service.
3. Regular servicing of the vehicles is done and
employees undergo routine training.
Through this VRL is able to avert many
accidents and ensure safe delivery of the
packages.
4. Provides good motivation for the employees
and proper condition of the vehicles are
maintained.
This helps them ensure on time delivery of
the packages which adds more satisfaction to
the customers.
5. Large clients are contacted on a routine
basis for feedback
This help them maintain good relationship
with clients and therefore retain the
customers
6. VRL does research on a routine basis and
ascertains new potential routes and
introduces new routes of service
Through this they are able to provide the
customers much broader and increasing
service every year.
Balance Scorecard Model
S.No. Processes Outcomes
1.Research process for accessing potentialservice
It helps in designing expansion strategies
in terms of number of vehicles and new
service routes2. VRL houses driving training school and
provides routines training to the drivers
It helps help them reduce the number of
accidents which happen3. VRL provides good motivation by
rewarding regular on time deliveries andreduction of fuel usage
Motivation in terms of money and
promotion motivates the employees tostrive more towards those goals.
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Suggestions for future visits
We as a group found this Industrial visit very useful for understanding the various
processes existing in the organizational structure. The group had a great learning experience at
KFIL and VRL Logistics. Our suggestions for the teams visiting the industries in future are:
a) The group visiting the organization should have a clear understanding of what the
organization is all about and what kind of services and solutions the organization provides to its
customers.
b) The group should be aware as to how the organization contributes to the customers,
society, and people. One should have knowledge of all the relevant points the group wants to
know about the organization and frame the questions based upon the same perspective thus
eliminating any sort of inconvenience in the organization during the time of visit.
c) Questions should be framed prior to the industrial visit and a copy of the same should
be sent to the HR manager to address the same questions to the various department heads in the
organization.
d) The group should coordinate with the HR of the organization because they act as a
linking bridge between the students and the various department heads.
e) The group should make sure that in addition to business excellence and balanced score
card they should also have a clear understanding of several operations management concepts and
terms.