industrial integration report group-4

7/29/2019 Industrial Integration Report Group-4

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KIRLOSKAR INSTITUTE OF ADVANCED

MANAGEMENT STUDIES, HARIHAR

INDUSTRIAL

INTEGRATION REPORT

MANUFACTURING INDUSTRY: BOSCH

LIMITED,INDIA BANGALORE PLANT , DIESEL

UNIT

SERVICE INDUSTRY : STOCK HOLDING

CORPORATION OF INDIA LIMITED,

BANGALORE MAIN BRANCH

Submitted to : Prof. E.Anand Submitted from :

Nishanth Joseph Thomas (52)Pankaj Kumar Bothra (53)Jennifer Viola Rebba (68)

Ritesh Sood (69)Shreya Srivastava (82)

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Date of Submission: 14th Jan 2013

ACKNOWLEDGEMENTS

The satisfaction that the successful completion of the task would be incompletewithout mentioning all those guidance and encouragements which crown the efforts withsuccess.

First and foremost we would thank the lord Almighty for His grace, mercy withoutwhich nothing would have been possible.

We sincerely bow with reverence to the sanctum of KIAMS for giving us anopportunity to pursue our PGDM course.

We are indebted to the Director, Dr. Gopal Iyengar, for facilitating a congenial

academic environment in the college.

We will be obliged to Mr.E.Anand who has given us the opportunity to make areport on Report on Larsen & Toubro-A Quantitative & Qualitative Analysis basedon Crisil Framework.

We would like to say thanks to each other for being patient while doing the groupactivity and avoiding any type of plagiarism.

Last but not the least we would like to thank our parents and friends.

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Table of Content

Sl No. Chapter Page Number

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CHAPTER 1

OBJECTIVE OF THE VISIT

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OBJECTIVE OF THE VISIT

The main objective of making an Industrial visit was to understand and know about the

various management and structural process that are being practiced and carried out in

the functioning of a manufacturing and services Industry such as how the various

factors of production and other resources help in fulfilling the desired result of Demand

and Supply. Before visiting the industrial units we were guided about the two important

models named as CII Business Excellence Model & Balance Score Card through a

workshop so as to understand there application in practicality in any organization in their

day to day functioning as well as towards its end goals.

To have an interface with the industry and their by understand the practical implicative side

of Business Excellence Model in Manufacturing and Service Industry and there by assessing

them on parameter of Balance Score Card.

To develop an understanding of the roles and responsibilities of different departments in an

organization and also their inter-relation amongst themselves.

The visit was helpful because it developed our interest in some parts of business which we

were unaware of.

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BOSCH LIMITED

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ABOUT BOSCH GROUP

In 1886, Robert Bosch founded the Workshop for Precision Mechanics and Electrical

Engineering in Stuttgart. This was the birth of today's globally active Robert Bosch

GmbH. From the very beginning, the company's history has been characterized by

innovative drive and social commitment.

Bosch has celebrated its 125th anniversary in 2011. The company was set up in

Stuttgart in 1886 by Robert Bosch (1861-1942) as a "Workshop for Precision Mechanics

and Electrical Engineering." The special ownership structure of Robert Bosch GmbH

guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the

company to plan over the long term and to undertake significant up-front investments in

the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch

GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of

voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The

entrepreneurial ownership functions are carried out by the trust, which is

constituted in the form of Board of Directors who are 12 in numbers. The

remaining shares are held by the Bosch family and by Robert Bosch GmbH. The Bosch

slogan 'Invented for Life' is part of its long tradition, through which it communicates the

Group's core competencies and vision, that include technological leadership, modernity,

dynamics, quality and customer orientation.

The Bosch Group is a leading global supplier of technology and services. According to

preliminary figures, more than 300,000 associates generated sales of 51.4 billion Euros

in the areas of automotive and industrial technology, in the areas of automotive and

industrial technology in fiscal 2011. The Bosch Group comprises Robert Bosch GmbH

and its more than 350 subsidiaries and regional companies in over 60 countries. If its

sales and service partners are included, then Bosch is represented in roughly 150

countries. This worldwide development, manufacturing, and sales network is the

foundation for further growth. Bosch spent some 4 billion Euros for research and

development in 2011 and applied for 4,126 patents worldwide. With all its products and

services, Bosch enhances the quality of life by providing solutions which are bothinnovative and beneficial.

ABOUT BOSCH LIMITED

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Bosch has been present in India for more than 90 years first through a representative

office in Calcutta since 1922, and from 1951 through its subsidiary Bosch Limited (then

Motor Industries Company Limited also known as MICO). Bosch is represented by six

other group companies & a joint venture in India. Bosch Limited is an auto component

manufacturer company. As of December 31, 2011, the Bosch Group held 71.18% stake

in Bosch Limited. Bosch Limited manufactures and trades in three business sectors,

such as Automotive Technology, Industrial Technology and Consumer Goods and

Building Technology. The Companys manufacturing facilities are located at Bangalore,

Naganathapura, Nashik, Jaipur and Goa.

Robert Bosch Engineering and Business Solutions Ltd. - A 100% owned subsidiary

of Robert Bosch GmbH, has been present in India since 1998. Today, it has emerged to

become one of the largest Bosch development centers outside Germany. It provides

end-to-end engineering and technology solutions for all the business sectors ofautomotive technology, industrial technology, consumer goods and building technology.

It employees more than 4800 associates and is a ISO 9001:2000 certified and

appraised at CMMI Level 5.

Bosch Rexroth India Ltd.- that was established in 2001 (by acquiring majority stake in

Rexroth established in 1975), is an expert in service for drive and control

technologies.It employees nearly 600 skilled associates and serves in India through

manufacturing unit established at Bangalore and Ahmedabad,5 sales offices and

numerous sales and services partners across India. The company is ISO

9001:2000,ISO14001:2004,OHSAS 18001:1999 certified. It exports its services tovarious countries such as Singapore,Malaysia,China,etc .

Bosch Chassis Systems India Ltd.(RBIC)- established in 2005, (by acquiring majority

stake in Kalyani Brakes Ltd. established in 1982) is amongst the World class

manufactures of Hydraulic Brake Systems meeting the stringent quality norms of many

leading OEMs in India and international vehicle manufacturers. It employs around 2500

associates and is operational from place known as Chakan and corporate office at

Pune.

Bosch Automotive Electronics India Private Ltd(RBAI).-is a 100% subsidiary ofRobert Bosch GmbH and is engaged in the manufacture of electronic control

units(ECU). The company is based at Naganathapura in Bangalore. It serves to both

domestic and International OE customers with the Diesel systems and Gasoline

systems division.

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Bosch Electrical Drives India Private Ltd.- It is based near Chennai and was formed

in 2008 manufactures and sells electrical drives for various automotive applications

such as window lift drive, wiper system, engine cooling fans etc.

ETAS- It is a100% subsidiary of Robert Bosch GmbH.It provides comprehensive and

integrated tools and tools solutions for the development and service of automotiveelectronic control units(ECUs).They develop innovations required for tomorrows vehicle

technology.

MHB Filter India Private Limited It is a JV for design, development and

manufacturing of automotive filters and filter assemblies in India.

ABOUT BOSCH LTD. INDIA, BANGALOREFounded in 1951, Bosch Limited is Indias largest auto component manufacturer and

also one of the largest Indo German companies in India. The company generated netsales of Rs.8017.9 crores in 2011 with 12236 employees in India. Details below

Automotive Technology Business divisions: Diesel and Gasoline Fuel InjectionSystems, Car Multimedia Systems, Auto Electricals and Accessories, Starters andMotors Generators, Automotive Electronics, Energy and Body Systems.

Industrial Technology Business divisions: Packaging Machines, Special PurposeMachines

Consumer Goods and Building Technology Business divisions: Power Tools,

Security Systems

VISION:

Creating Values Sharing Values.

MISSION:

Enabling the Bosch group by Maximizing value as an offshore partner intechnology and business solutions through BeQIK (Be Better Be Bosch) focusing on :

Value Capture

Quality and Mature Processes

Continuous Improvement and Innovation

Leveraging Synergy and Talent

VALUES:

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1. Future and Result Focus2. Responsibility3. Initiative and Determination4. Openness and Trust5. Fairness

6. Reliability, Creditability and Legality7. Cultural Diversity

Milestones in Company and Product History

1886 Establishment of the company, opening of the Workshop for Precision Mechanicsand Electrical Engineering in Stuttgart on November 15

1897 First successful application of the Bosch low-voltage magneto ignition device to a

motor vehicle1902 First high-voltage magneto system with Bosch spark plugs1913At the main factory in Stuttgart, establishment of an apprentice training

department with a dedicated workshop for apprentices1913 Bosch automotive lighting system an electrical lighting system for vehicles1918 Gottlob Honold designs the armature in a circle, the new Bosch trademark.1921 The first Bosch Car Service opens in Hamburg.1927 Series production of Bosch fuel injection pumps and nozzles for diesel engines1928 Launch of the Forfex hair trimmer, the first Bosch power tool; 1932 first power drill

and Bosch hammer1932Acquisition of heating systems business of Junkers & Co. GmbH, Dessau,

Germany1932 Launch of Europes first series-produced car radio1933 Launch of the Bosch refrigerator1940 Official opening of the Robert Bosch Hospital1951 Series production of gasoline injection for passenger cars1963 Start of packaging machinery activities with acquisition of Erich Wetzel

Verpackungsmaschinen GmbH1964 Vermgensverwaltung Bosch (from 1969: Robert Bosch Stiftung GmbH) acquires

majority stake in Robert Bosch GmbH.1967 Foundation of Bosch-Siemens Hausgerte GmbH (known since 1998 as BSH

Bosch und Siemens Hausgerte GmbH)

1967 Series production of the Jetronic electronic gasoline-injection system1974 Launch of Boschs 3S program (safe, clean, economical) for product

Development1976 Series production of lambda sensor for three-way catalytic converter1978 Series production of the ABS electronic antilock braking system1979 Series production of the Motronic electronic engine management system1986 Series production of the TCS traction control system1989 Launch of the TravelPilot IDS, first autonomous vehicle navigation system in

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Europe1991 Series production of Motronic with controller area network (CAN)1995 Series production of the MEMS micromechanical sensor1995 Series production of the worlds first ESP electronic stability program1997 Series production of the common-rail high- pressure diesel injection system.

2000 Series production of the DI Motronic gasoline direct injection system2001 Industrial leadership of Mannesmann Rexroth AG, and its merger with theAutomation Technology division to form Bosch Rexroth AG

2003 Launch of the Ixo cordless drill/driver with lithium-ion rechargeable battery2005 Series production of Night Vision driver assistance system2005 Bosch Limited applies EFQM models to its Bangalore Plant2008Acquisition of the solar cell manufacturer ersol Solar Energy AG (now Bosch Solar

Energy AG)2008Acquisition of Innovations Software Technology GmbH in Immenstaad, Germany

(as of January 1, 2011: Bosch Software Innovations GmbH)2009 BoschLimited gets the award ofCII Exim Bank Business Excellence Award.

2010 Series production of the parallel full hybrid drive for passenger cars2010 Series production of the predictive emergency braking system2010 Series production of lithium-ion battery cells for vehicles at SB LiMotive in Ulsan,

South Korea2011 Series production of drive components for e-bikes in Mondeville, France2012 Bosch Limited won Golden Peacock Award from Govt. of India , it is

Considered on of the highest prestigious award in the Manufacturing sector

BOSCH BUSINESS EXCELLENCE MODEL

Bosch group since its very beginning has been highly focused on quality and believes inbringing in changes in market through its continuous Innovation. Robert Bosch GmbH isone of the founder member and company to implement EFQM(European Foundation forQuality Management) Model to its units. It has started to apply same in its Bangaloreplant since 2005 and there by received award in year 2009 for same CII Exim Bank

Business Excellence Award. Let us know understand the application of this model ongiven parameter according to our group understanding and findings through this visit tothe plant.

Enablers:1) Leadership :

71.18% of the Bosch Limited in India is held by Bosch group of Germany,where as 92% of the Bosch group German company is held by Robert

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Bosch stifting GmbH which is a non profit organization. The intent has beenclear since inception that it should be a autonomous, highly professional &ethics and value driven company. Bosch leaders in India are highly qualified and carry vast knowledge interms of their working experience as well as specialization of work they

perform. Mr.Duernholz is considered to be one of the pioneers in the field ofDiesel technology with his vast experience of more than 30 years.Recently ,there has been change in the leadership in terms of change ofManaging Director effective from 1st Jan 2013,Dr.Steffen Berns who isdoctorate in Mechanical engineering and has been part of R&D at Boschearlier too. In a recently held Fortunes Magazines first survey on Indias mostadmired companies, Bosch has ranked 11 th,also in talent management andleadership in the entire automotive industry in India ,it was ranked #1. Bosch management is transparent in terms of its operational functioning.Regular meetings are carried out at all levels of management with assigned

level of span of control so as to which falls under the respective unit toinsure that management as well as associates are able to communicatetheir vision, goals, targets properly down the line and associates also cansynchronize their requirements with management needs so as to keepmotivation level high.Through this mode management also try to ensure toget regular feedback of their works,or if any problem in case they are facing. There are complain box as well as suggestion box placed in eachdepartment so as to keep complete transparency in terms of working. Incase if any wants to complain of sought of thing he may do so thru thismode where by management will cary out thourgh search on the matter soas to get the final output. Management may calls both party for resolutions.

Through Suggestion box management try to develop ownership interest inits associates and also promote innovation . Bosch Management is forward planning in their planning. They havealready laid down a comprehensive long term plan till the year 2020.Thesame is documented as VISION 2020 and distributed among differentdepartments of Bosch so as to develop the synchronization to theorganization needs. They have set out target of`180Billion as Turnover bythe year 2020. The expected growth rate, market condition and other factorhas already been assessed and analyzed for deciding upon the strategicplan for the company so as to set out short and long term targets.

Bosch looks in bringing together the benefits for all its stakeholders as it

allows them to work on their designated organizational VISION - we growprofitably with innovative solutions for our customers with a commitmenttowards our society and environment.

Bosch has a transparency and no corruption policy. Employee cancomplain about anyone on their ethical conduct.

The Diesel System of Bosch at Bangalore uses competency mapping tocheck on the leadership .Time to Time required training is given to leadersto improve their leadership skills.

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To control change processes centrally and strengthen core processesworldwide, Bosch aligns its various management systems under the Group-wide umbrella of the Bosch Business System (BBS). We do this because wewant to shape changes successfully at Bosch and always see them in theiroverall context. The BBS and its subsystems follow this holistic approach bytaking into account the complex relationships and interactions during changeactivities, especially in terms of the demands placed on executives andassociates.

2) STRATEGY :

Long-term success in this dynamic and volatile environment requires a balancebetween creating and securing value for all stakeholders. The strategy it pursue toachieve it, takes it lead from the overriding objectives of strong and meaningfuldevelopment on one hand and continued financial independence on the other.

Application of EFQM principles in practice to the in BOSCH led to improvements notonly in leadership aspects but also strategy management. Business Excellence isfacilitating the organization to align all its functions towards the Company's visionand mission strategically. This management concept places a strong emphasis onmeeting all stakeholders' expectations. They develop innovative and beneficialsolutions that improve the quality of life, and aim to achieve or enhance a leadingmarket position in all our areas of activity.

i) Corporate strategy: Implying Business Score Card, EFQM & RADARtechniques is a part of Bosch Corporate Strategy so as to bring in more efficiencyand effectiveness in its performance of its functioning

a) Boschs economic strategy corresponds to the common aim of the

Bosch Group for innovation, independence and integrity. The main focus ofBoschs activity is to maintain the innovative force which is based on theknowledge and competence of experienced employees. The aim is to beamong the worlds market leaders and to be a major player in all of thecompanys business sector. The strategy to obtain this goal is on one handstrong marketing of new products and on the other hand ongoinginvestment in Research and Development to innovate continuously. Theemphasis on innovation is underlined by the huge number of associates,working in Research and Development departments. Efficient sales and customer service also plays a key role in Boschscorporate strategies. It strives to innovate and create value for them by

understanding and anticipating their needs and expectations. c) Promoting high level of Integrity among its associates and leader is animportant part of Boschs corporate strategies. The company stands for itsethics, values, and promoting team spirit and to strengthen integrity with theconcern for long term performance.

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ii) Business strategy:

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Bosch brand is known all over the world and people associate quality,innovation, reliability and financial strength with it.I n India nearly 85-90% ofmarket share in diesel engine,etc.,is with Bosch. Its business relatedpolicies, plans, objectives and processes are developed and deployed as astakeholders focused strategy for the entire organization. The Bosch

Group's long-term strategy is geared toward the basic global trends astrong global presence, focused diversification, and exceptional innovativestrength. Boschs future business strategy is supporting growth and reducing cost.Bosch follow Bosch Production system(BPS) to strike the balancebetween innovation leadership and cost leadership This is a leanmanufacturing concept which ensures that the production processes aresimple and transparent, thus saving them from excessive production costs.Bosch has also invested in new development centres at low cost locations. As part of CSR Strategy as well as business strategy ,Bosch Bangaloreplant is being planned to shift approx 30km from its current location as

because current plant is in middle of the city and it pose a huge difficulties inlogistics and operational effectiveness. To remain competitive and to meetthe challenge in its environment Bosch directing its effort to reduce costs,continuous improve processes in all areas and intensively utilize resources. New market development- Development of solar panels & use of SolarElectricity to electrify the entire Bosch Bangalore plant has provided thecompany an option to reduce its cost effectively. For the development ofsolar panel, Bosch has began manufacturing photovoltaic cells by acquiringa company named Ersol.

Exceptional innovative strength: They focus on innovative strength on technology that is Invented for life.

This allows them to see significant economic opportunities arising in areasinvolving ecological needs, since these needs require more, not less,technology.

Focused diversification We will continue to improve the balance in our sales structure in theindividual areas. This means taking advantage of all opportunities for growthin automotive technology and, at the same time, growing by above-averagerates in consumer goods, building technology, and industrial technology.Our focus in this respect will be on areas of business that fit ourtechnological competence. This is what we call focused diversification. Identify and respond to megatrends in the different parts of the world -

Addressing the current needs of driving and environmental safety and fueleconomy, Boschs product philosophy for more than 30 years has been the3 S - Sicher, Sauber, Sparsam (Safe, Clean, Economical). Pursuing thisphilosophy has led to the technological advances mentioned above.

Strategically align purchasing on a global basis-Bosch has amplifiedpurchasing volume in low cost locations.

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Think Global ,but do not forget local requirements- Bosch has beenadapting itself to the environment where in it had entered till now to theneeds of the consumer in that locality.

3) People:Placing the Right man at Right place and possibly at right time is very crucialfor the success of our company. -Robert Bosch.

Bosch philosophy has always been to promote trust, creativity, innovativethinking and to crate space for the employees to think and actindependently. In India the Bosch Group employee strength is 25,190associates, whereas alone Bosch employees 12,232 of its total assocites.The basic frameworks of human resource development in Bosch are asfollows: Training existing employees towards meeting challenges arising from

development or up-gradation of technology. Training and developing the younger generation of apprentices/engineerswho are the future skilled technicians/managers and increase theirknowledge base. Company is making considerable investments in thetraining and upgrading of associates skills and in state-of-art engineeringinfrastructure. Bosch in India has been able to live up to the global image of being oneon the most admired employers. In Fortune magazines first survey onIndias most admired companies held this year, Bosch was ranked number11. In talent management and leadership in the entire auto industry, Boschin India was ranked number 1. These rankings are a testimony to the

opportunities and the experience that Bosch in India guarantees itsassociates. The popular Junior Managers Program, the Technical Managers Trainingprogram and the Indo-German Training program are all part of this samefocus.For identification, selection and grooming of high potential talent thereare specific programs like the junior to middle associate developmentprogram and the middle to senior management evaluation and developmentseminar. Last year, out of the 315 associates identified as high potential,286 underwent rigorous assessment procedures. The Junior Managers Program (JMP) is the most-prestigious program runby Bosch for mid-level managers. It is aimed at nurturing MBAs from the

Top 20 B-Schools who are likely to be tomorrows Bosch executives foraccelerated international careers. Challenging projects, responsibilities, aglobal network as well as intensive on and off- the job training help theassociates prepare for senior management responsibilities early in theircareer. This 24-month rotational program, modeled after a training programin Germany, has produced many top executives over the past 30 years,including the Chairman of the Board, Franz Fehrenbach. In all, 54associates have been selected for the JMP program since 2008.

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The Technical Managers Training program is especially targeted atassociates hired from top-ranking engineering colleges. It aims to strike theright balance of theoretical and practical subject matter ensuring optimum'real- world' application for various workshop needs. At Bosch, it is believedthat a technician who has the ability to diagnose problems quickly and

accurately increases the efficiency of the workshop, gives greater customersatisfaction and in turn results in greater profit. Fitting the right person to theright job is the key to success here.Apprentices straight of matriculation are recruited and trained at vocationalcentre famously referred to as the Bosch Vocational Centre. While the firstyear at the centre focuses on familiarizing the student to the course, thesecond year focuses on job-oriented training and industrial exposure. At theend of the second year, students are trained in different areas ofspecialization and in-plant training for acquiring advanced skills. Heavyemphasis is laid on "multi-skilling" with emphasis on accuracy and highquality - this is the first step towards creating a future "Technocrat. On an

average Bosch in India hires around 150 graduate apprentices a year. Atthe end of the course they are mostly absorbed on the payrolls of thecompany. By hiring them young, Bosch is able to mould them and infuse inthem the Bosch culture as well as the habit of delivering and maintaininghigh quality standards. These training sessions are derived and developed from corporatecompetence standards and are termed as Global Corporate standardtrainings and are applicable to Bosch associates worldwide. Every year,Bosch Limited aims to train 25 associates under this project. A mandatoryday-long training program for blue collared associates, titled Working

According to Standards,trains around eight associates in production and

related support areas. The program focuses on prioritizing to resolveproduction issues, understanding process confirmation and line balancingamong others.

Continuous Improvement Programme (CIP): A methodical approach ofCIP was adopted by Bosch through involvement of leaders, known asLeaderCIP. It is a structured improvement process that works with the goalof excellence in controlling everyday work, thereby increasing the valuecontribution.

Bosch Vocational Centre (BVC): With 50 years of experience in training&development, the Bosch Vocational Centre has been instrumental inidentifying and tapping an individuals' potential. It has been successful in

extracting greater efficiency and maximizing employee contribution towardsachievement of organizational goals.

Quality Circle: In Bosch, every department has at least one quality circleteam which consist of a group of employees who voluntarily become a partof the team and choose a problem of their department. Discussion happenson a weekly basis and they work on the problem and its improvement. The House of Orientation sets out how organization see their associatesfuture development, the principles of their approach, and the capabilities

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that they have and want to exploit for continued success in the future. It alsocontains information on the standards and values that motivate them in theirdaily striving for success and improvement. House of Orientation. will helpall associates to understand and live the corporate culture a culture thatoffers orientation, reinforces cohesiveness, and creates identification.

The House of Orientation comprises the following modules:These values are:1. Future and Result Focus2. Responsibility3. Initiative and Determination4. Openness and Trust5. Fairness6. Reliability, Credibility and Legality7. Cultural DiversityThe House of Orientation helps all associates of the Bosch Group to betterunderstand the changes in the company, to play their part in shaping those

changes, and in this way to ensure the long-term competitiveness, focuseson product creation and related activities. Best-practice processes andqualified associates allow Bosch to attain excellence in product creation andbest-in class products.

4) Partnership and resources:External partnership:

Bosch maintains a list of regular suppliers. In case of emergencyrequirement they also approach temporary suppliers. Currently, duringmanufacturing process a few of the supplies are taken as random sampleand tested upon for quality assurance check and other parameters. In the

future, Bosch wants to eliminate this process of testing of sample suppliesas it involves cost and time. They want their suppliers to be added to a list ofprioritized and preferred suppliers whose quality will be guaranteed. Andthere by check cost of the same will be reduced. Bosch wants to develop trust between all the stakeholders and thecompany. It keeps the stakeholders regularly informed on the developmentsin the company and in the industry.

Customers are also a part of the stakeholders of the company. To createa brand image of the company and to create a long term relationship withthe customers Bosch takes a variety of initiatives. They are:i. Participating in fairs.

ii. Organizing seminars.iii. Print newsletters which are to be sent to the entire customer group(companies).iv. They organize tech-day at OEMs in which company conducts freecheck-up of cars, etc. they inform the user on the ways to best utilize the carand how to make it last longer. This action of their helps create a goodbrand image and recognition for the company.

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v. In case of complains they follow the eight D format. In which conduct adetailed analysis on the complain and the problem. The problem is solvedwithin two weeks time maximum. This time may vary depending on theseverity of the problem.

Internal resources:I. All the employees be it the labour or the management all are considered apartner to the firm.II. The employees are given a safe environment to work in. They in facthave a vision of hospital clean inside and garden green outside. Thisshows the quality of employee satisfaction they want to achieve.III. . Ergonomic principles are used to get maximum efficiency.IV. By using solar power in cooking they have been able to create apollution free environment.V. Safety is a major constituent at Bosch. Safety of employees is given

maximum concentration. In each department one could find a stretcher, fireextinguisher etc. the plant is made in such a manner as to have the leastharmful effect. All employees have been given with required safetyequipments.VI.The employees are explained the vision goals of the company to bettermotive the employees to take part in the process.VII.The layout of the manufacturing unit is currently a mixture of straight linelayout and process layout. This leads incurring of excessive cost. Thecompany has plans to change that to a mixture of straight line and U shapedformat of manufacturing.

5) Process, Product and services:I. The company has a fixed process for all of its practices. These processesare regularly upgraded to suit market demand and change in trend.II. CIP stands for continuous improvement process or KAIZEN Concept inJapanese term. This is used to achieve manufacturing excellence. Thelabourers working at Bosch currently are used to the current process ofmanufacturing. To change their perspective and get them accustomed tothe new process. Example: the company earlier used to manufacture oneproduct on one day and another product on another day. With increasingnumber of customers they shifted to a manufacturing process whichproduced all kinds of product on same day. This helped Bosch in satisfyingthe demand of the multiple-customers and also reduced finished goodsstock.

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III. The machinery used is continuously improved upon. Obsolete machinesare upgraded for their spare parts department. Older machines areupgraded to newer technology thus implementing cutting purchasing cost.IV. The end products of the company are changed according to marketdemand. Like, the diesel system which is currently the largest market for

Bosch was thought to be obsolete to such an extent that the companypeople themselves thought that the product will lose its demand in the nearfuture. But with its innovation tactics it was able to surpass that stage andnow the company has maximum share in the diesel systems market.Company has brought such innovation to diesel engine that its life can beextend to approx 100years.

V. RADAR- It is a system used by Bosch for assessing structurally rationaldecision making process. Key result to be achieved is analyzed. Therelevance and usability of the result is identified by analyzing the scope,integrity and segmentation. The performance is analyzed by studying the

trend, targets, comparisons, causes. After deciding the key result theapproach is analyzed. The approach should be sound and integrated. Afterthe approach is decided it is implemented systematically this is known asDeployment. At last assessment is done using measurement tools andthrough refinement is done improvement and innovation in practices.

6) Customer Results

Bosch has huge client base domestically as well internationally. ThusBosch has always focused on quality of its products for its customers.To achieve high customer results Bosch also provide quality after sales

service to the customers.Customers are regularly intimated by the company regarding any majorproduct development or technology adopted by the company thru differentmeans of communication.VI. Bosch considers customers as one of the major valued asset of thecompany and thus try to maintain life long relationship with them.

7) People results:People form the base for any organization. For any successful organizationit is necessary to have an effective work force. To test the effectiveness ofpeople bosch uses a variety of methods.

Every leader is assessed and given position on the basis ofcompetency mapping done for him/her.

Bosch has an internal training centre, which identifies training needsbased on performance evaluation system.

Internal training is for soft skills development.

Technical training is given to the personnels requiring technicalknow-how.

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Semi yearly assessment is given to all employees, in whicheffectiveness of training is assessed. Lay off is considered only inthe most extreme of cases. The people are divided into types ofperformers based on performance. The lower performers areselected for training and the exceptional performers are given

appreciation by ways of incentives, recognition etc. Employees are sent to foreign countries to be trained in acquiring

better techniques.

8) Society Results:Social commitment is an essential principle underlying the corporate policyguidelines of the Company. Responsibility towards Society and Environmentis guided by Bosch values, principles of social responsibility, work safetyand environment protection.

I. The Bosch principles of social responsibility include - human rights,equal opportunities, employment of handicapped people, free choice of

jobs, rights of children, relations with associate representatives and theirinstitutions, fair working conditions, occupational health and safety, cleanand safe environment with social engagement.

II. Besides the welfare initiatives within the factory premises, theCompany is also promoting the interests of underprivileged and impairedsections of society through monetary contributions for the social workcarried out by charitable organizations, old age homes and schools, andparticipates in women empowerment programs bodies.

III. To sustain cultural values, the Company supports cultural activitiesthrough its fine arts club.

IV. During the times of natural calamities like floods, cyclone, tsunami,

1 earthquake etc., the Company actively supports the affected people through2 Voluntary participation and donations.V. The Health & Hygiene, Environment Education, Community Development

and Vocational Training strategies are deployed through social responsibility

models that are communicated across the Plant through posters, visual boardhandouts and guides. The aid in generating large number of volunteerswilling to do their best towards the betterment of the society. It is involvedwith various program in regard to environment and tree protection inBangalore city.

VI. The Plant supported differently abled people through theorganization called 'Ability in disability Foundation (AID)' and provided rawmaterial to the organization that in turn assembles components for theCompany. The Company recruited around 35differently abled people forlight jobs like component packaging inside the Plant.

VII. Manasi a social service initiative by the women employees ofBangalore Plant were honoured with appreciation award for CSR activitiesby the corporate Diesel Systems.

IX. The 'Clean Air' campaign was conducted for students in colleges &schools, auto, cab, and busdrivers and general public in order to bring about

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awareness on environment pollution and various measures to reduce thesame.

X. The Plant has adopted Dubewadi Village in association withKalpataru Foundation, Dubewadi, Trimbakeshwar taluk, which is 50 kmsaway from the Plant.

9) Key Results:Indicators:

The company looks at two levels of results based on its prefixedtargets: Short term results and Long term results. Long term goal likeattaining a turnover of Rs 180 billion by 2020 was identified. So shortterm goal was set at increasing turnover by Rs 30 billion.

It follows two supportive strategies viz., BPS leadership trainings andNew BPS Assessment model help align value stream culture withbusiness Key performance Indicators (KPIs) for assessment to theorganization

To achieve total quality management the company trains 25 peopleevery year on assessment. These people are trained on how toassess the work of others. These people are also sent to othercompany to assess them.

Measures:

Bosch Bangalore because of its cost cutting strategy has become ahead quarter for diesel system all over the world.

Bosch also conducts internal assessment to continuously analyzeitself and its performance.

BOSCH BALANCE SCORE CARD

I. FINANCIAL PERSPECTIVE

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PRODUCTIVITY STRATEGY

IMPROVE COST STRUCTURE :All Figure in ` (Million)

Particulars 2011(`) 2010(`) 2009(`)

Sales 79294.70 66305.00 47498.00

Of which Exports 10344.10 8460.70 5855.00

PBT 15739.90 12027.90 7934.00

PAT 11225.60 8589.00 5906.00

Bosch Limited nearly 85% of sales alone come from Diesel Unit i.eEngines and auto ancillary unit. KEY LEAD INDICATOR :-Return on Capital Employed (%) 29.5 %( 2011) vs. 27.10%Inventory Turnover Ratio (in Days) 37(2011) vs. 46(2010)Debtor Turnover Ratio (in Days) 36(2011) vs. 38(2010)Current Ratio 2.01(2011 vs. 2.02(2010)No. of Days in Working Capital (Days) 92(2011) vs. 93(2010)

OPEARATING INCOME

Particulars 2011(` Crores) 2010 (` Crores)Operating Income 8017.90 6698.93

EXPENDITURES

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SUSTAINED SHAREHOLDER

VALUE

No. of Members 24,078 No. of Shares Held - 31,398,900


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1. During the year Bosch has made `80.4 Crores of Revenueexpenditure on R&D.2. The percentage of cost of material consumed as againstsales for the year 2011 has gone up by 177 basis points to 56.0% as against 54.3% of

the previous year 2010. The increase in percentage is mainly due to depreciation inrupee and increasing input prices during the year basically on steel, alloys and othermaterials.3. Personnel cost as a percentage of sales for the year 2011stood at 11.3%, which has come down by 80 basis points in comparison to 12.1% ofprevious year 2010. Sales per employee have improved by 12.9% from TINR 5,836 inthe previous year 2010 to TINR 6,588 for the current year 2011.4. The EPS (Basic and Diluted) of the Company for the year2011 has increased impressively by 30.7% to a record INR 358 per share from INR274 per share in the previous year 2010.5. In Current year company had made 8.3% of Sales as

Capex in various facilites of India.

II. CUSTOMER PERSPECTIVE

1. Price:(a) Bosch generally deals with two kind of Customer for its products One by

directly serving to OEMs eg. Such as Tata , Mahindra , Maruti, Bajaj, Honda, etc, asthere this business is mainly of B to B type and secondly serving to distributor ordealers for continuous sale of its spare parts and other accessorial material.

(b) There products are mainly Single Cylinder Injection Pumps(Series of PF-suchas PF 51,PHEK,Common Rail System(CRS), Multi cylinder Inline Injection pump(PESeries, A pump and fuel injection pump, Sensors,ECU(Electronic Control Units).

Thus price depends upon the lot size of the order and customers specificationabout the product, otherwise in general the price of Bosch parts are uniform in nature.2. Quality:

(a) The company follows TQM and EFQM and RADAR model, which allow themto keep a check on quality inspection system which they apply along their production

process and make the necessary changes immediately if required instead , hencethey have achieved 0% rejection of the order.

Rejection % = no. of orders rejected/ total no of orders*This is zero for the company.

(b) Bosch also follow BBS module where by it have different sub-parts for eachDepartments effectivity :

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The Bosch Product Engineering System (BES) : focuses onproduct creation and related activities. Best-practice processes and qualifiedassociates allow us to attain excellence in product creation and best-in-classproducts. The Bosch Production System (BPS) : is a systematic approach

to adjusting and restructuring value creating processes up to delivery to ourcustomers. The focus of BPS is on the avoidance of waste in production and itscontributory business processes. The Bosch Sales and Marketing System (BSS) : starts from therequirements made of Sales and Marketing by the market. The defined goal ofBSS is to achieve sales excellence. Bosch Human Resources System (BHS) : a management andsupport system, is the global change initiative in Human Resources. It providesboth a framework and direction for strategic and operational HR work. Its goal is toachieve systematic control and optimization of HR processes and organizationworldwide.

1 3. Partnership:

They consider all stakeholders as their partners and it had not entered into any legalpartnership with any of its customers.1 4. Brand: CRISIL has rated it as AAA.2

1 III. Internal perspective:

1 1. Process landscape:

Raw Material Value Addition Delivery

Company works on lean excellence.

Core process- customer management process ( new business,new order)

1 1. At service level company goes for post delivery process.2 2. MSD- improvement on continuous basis. InfoTech in facility management.3 3. FCM- faculty management process, linked to management.4 4. For delivery Process Company works under integrated process.5 5.On the basis of order company keep on changing its production level.6 6.Company works on principal of Continuous Improvement Process.

2. Quality:

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Company works on continuous improvement principal and thus had formed a aquality circle, in which employees share problems and other tools of cause and effectrelationship with respect to problem solving. Meetings are conducted on regular basis.Company classifies the problems as:

A- Problems which can be solved by employeesB- Problems involving managementC- Problems which require investment

There teams have won various awards

Company also works on cellular facility layout (u- shaped) whichhas helped them to improve their lead time for inventory.

3. CUSTOMER MANAGEMENT PROCESS:-

Company considers all its suppliers as partners. It focuses mainly on the large suppliersfor building up the strong network ofrelationship.

4. INNOVATION: Company has innovated emplastic i.e. use of plastic instead ofaluminum in certain components of the auto ancillary component

5. LEARNING AND GROWTH PERSPECTIVE:

(a) EMPLOYEE COMPETENCY- Company provides on the job training once in year toits employees. And after 6 months it checks for training effectiveness.

(b) TECHNOLOGY: 1. Common rail fuel injector pumps, 2. PF51 diesel efficient pumpfor NANO.

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CHAPTER 4

STOCK HOLDING CORPORATIONOF INDIA LIMITED(SHCIL)

ABOUT SHCIL:

Stock Holding Corporation of India Ltd. (SHCIL) was incorporated as a PublicLimited Company in 1986. Flagged off at the initiative of the Government of

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India, SHCIL enjoys an enviable parentage that very few organizations canboast of, including leading Indian Financial Institutions and the Insurancemajors. It has been jointly promoted by IDBI Bank, ICICI, IFCI Ltd., SU-UTI,LIC, GIC, NIA, NIC, UIC, and TOICL, all leaders in their fields of business. It isheaded by luminaries from its promoter institutions who constitute its Board of

Directors and take policy decisions pertinent to the affairs of the corporation. Itbegan by offering custodial and post trading services, and later on addeddepository services and other services to its portfolio over a period of time.SHCIL has established itself in India as a one-stop solution provider in theFinancial Services domain. It is also the only organization authorized by GOI forissuing E-stamping.SHCIL, apart from being the countrys premier Custodian and Depository

Participant, SHCIL is also the largest Professional Clearing Member; backed by

an immense capacity to process volumes with precision. It also provides

Derivatives clearing, PF fund accounting, SGL constituent account services,

distribution of mutual funds and other capital market instruments, besides

distribution of life and non-life insurance policies.Other offerings added to the

bouquet are online net trading, loan against shares, Western Union Money

Transfer & E-stamping.

VISION :

To become one stop shop for all financial services.

MISSION :

To be a world class technology driven and client focused market leader infinancial and technical services

OBJECTIVES:

To retain the No. 1 position in the DP industry by being ahead of allother DP service providers with the innovative use of technology.

To provide justified service to every rupee the client pays. To ensure security and convenience of transaction to its clients at

reasonable price. To channel technology to make convenient products for financial

market that give quantum benefits to investors, corporate houses andbrokers.

To move with speed and ease, diversifying into new areas,considerably on others and sharpening its focus and paradigms.

To evolve a new strategy to emerge as a broad based financial powerhouse inthe years to come.

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To find ways to make information and reporting system more effective for theinstitutional clients.

VALUES:

Safety & Efficiency of Operations is a hallmark of SHCIL.

Professionalism & Integrity.

Customer First .

Relationship building .

Commitment to Quality irrespective of asset size!

MILESTONES :

1. Citation and Medal from Smithsonian Institute, Washington D.C, U.S.A. for "

Visionary and Innovative use of Technology in Finance, Insurance and Real

Estate". First South Asian Corporate to receive this.

2. Computer Society of India Award for best IT usage in the Country.

3. Their software processes have been assessed at SEI CMM Level 3.

4. Accepted industry leader and pioneer in Custodial Systems.

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SHCIL BUSINESS EXCELLENCE MODEL

1. LEADERSHIP :

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industrial integration report group-4

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