tvs motor final report.doc

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Industrial relations incidences are affecting harmonious

relationship and shop floor performance

In

TVS MOTOR COMPANY LIMITED

A Report submitted in partial fulfilment of the requirements for the Degree of

Master of Business Administration

Submitted By

R.M. RAMAPRIYAN

UNDER THE GUIDANCE OF

MAJOR. VISHAL KARAD, Manager Education & Training HRD

SRM SCHOOL OF MANAGEMENT

KATTANKULATHUR

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TABLE OF CONTENTS

1. Introduction 1

1.1.1. Major players in the two wheeler Industry 2

1.1.2. Market Share 2

1.1.3. Two-Wheelers: Market size & Growth 3

1.2. Company Profile 4

1.2.1. Products and services 9

1.3. Organization structure of TVS Motor Company 11

1.4. TVS Motor Company-strengths 12

1.4.1. TVS Motor- Driven by the customer 12

1.4.2. TVS Motor- The Industry Leader 12

1.4.3. TVS Motor- Global overview 12

1.4.4. TVS Motor- At the cutting edge 12

1.4.5. TVS Motor- Committed to Total Quality 12

1.4.6. TVS Motor- The Human factor 13

1.4.7. Plant Location 13

2. Literature Review 14

2.1 Elements of Cost15

2.1.1. Material 15

2.1.2. Labor 15

2.1.4. Expenses 16

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2.1.4. Overhead 17

2.2. Component of Total Cost 19

2.2.1. Prime Cost 19

2.2.2. Factory Cost 19

2.2.3. Office Cost 19

2.2.4. Total Cost 19

3. SWOT Analysis 20

3.1. Strength 20

3.2. Weakness 21

3.3. Opportunities 22

3.4. Threats 23

4. About the project 24

4.1. Purpose of the project 24

4.2. Objectives 25

4.2.1. Steps involved in the project 26

5. Details about the project 27

5.1. Competency 27

5.1.1. Job Description and competency 27

5.1.2. Elemental Competencies 27

5.2. The Multifaceted Nature of the Job Analysis 28

5.3. Productivit and Employee Motivation 29

5.4. Types of competencies 29

5.5. Types of behavioural competencies 31

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5

5.5.1. Interpersonal Relationship 31

5.5.2. Communication skills 32

5.5.3. Personal Leadership 32

5.5.4. People Leadership 33

5.5.5. Rigor in execution 33

5.5.6. Emotional Quotient 34

5.6. Team Leaders Job Description 35

5.6.1. Team Leader Orientation 36

5.6.2. Objective and Methodology 37

5.6.3. Competency assessment 37

5.6.4. Training and Evaluation 37

6. Extensive Problem Analysis 38

6.1. Solution for the problem 39

6.2. Common feedback from the Unit Managers 41

7. Performance Output 42

8. Conclusion 44


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1.1.1. Major players in the Two-wheeler Industry

There are many two-wheeler manufacturers in India. Major players in the

two-wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd

(Bajaj Auto) and TVS Motor Company Ltd (TVS).

The other key players in the two-wheeler industry are Kinetic Motor Company Ltd

(KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd

(Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda

Motorcycle & Scooter India (P) Ltd (HMSI).

The scooter and the scooterette share in the Indian two wheeler market is 13.4%.

The main models available in India are Bajaj Chetak, Honda Eterno, Kinetic Blaze,

LML NV SPL and LML Select II. TVS Motors launched India's first 50cc, 2 seater

moped: TVS Moped 50. TVS also launched India's first indigenous scooterette: Scooty

in 1994. This segment has about one-fourth share in the Indian two wheeler industry.

The major models available in India are Bajaj Wave, Bajaj Kristal DTSi, Bajaj Blade

DTSi, Hero Honda Pleasure, Kinetic Kine, Kinetic 4S, Kinetic Nova, Kinetic Zoom,

Kinetic V2 Range, Kinetic King 100, Kinetic Luna Super, Kinetic Luna TFR, Yo

Smart, Honda Dio, Honda Activa, TVS Scooty and TVS XL.

1.1.2. Market Share:

Company Market in three segments as on May2011

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Product Last year(May10) Current Year(May11)

Moped 5.9% 6.4%

Motorcycles 8% 7.7%

Scooty 19.8% 21%


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1.1.3. Two-wheelers: Market Size & Growth

In terms of volume, 4,613,436 units of two-wheelers were sold in the country in

9MFY2005 with 256,765 units exported. The total two-wheeler sales of the Indian

industry accounted for around 77.5% of the total vehicles sold in the period mentioned.

Segmental Growth of the Indian Two Wheeler Industry (FY1995-2004)

After facing its worst recession during the early 1990s, the industry bounced back with

a 25% increase in volume sales in FY1995. However, the momentum could not be

sustained and sales growth dipped to 20% in FY1996 and further down to 12% in

FY1997. The economic slowdown in FY1998 took a heavy toll of two-wheeler sales,

with the year-on-year sales (volume) growth rate declining to 3% that year.

However, sales picked up thereafter mainly on the strength of an increase in the

disposable income of middle-income salaried people (following the implementation of

the Fifth Pay Commission's recommendations), higher access to relatively inexpensive

financing, and increasing availability of fuel efficient two-wheeler models.

Nevertheless, this phenomenon proved short-lived and the two-wheeler sales declined

marginally in FY2001. This was followed by a revival in sales growth for the industry

in FY2002.

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Although, the overall two-wheeler sales increased in FY2002, the scooter and

moped segments faced de-growth. FY2003 also witnessed a healthy growth in overall

two-wheeler sales led by higher growth in motorcycles even as the sales of scooters and

mopeds continued to decline. Healthy growth in two-wheeler sales during FY2004 was

led by growth in motorcycles even as the scooters segment posted healthy growth while

the mopeds continued to decline. Figure 1 presents the variations across various product

sub-segments of the two-wheeler industry between FY1995 and FY2004.

1.2. Company Profile

TVS Motor Company is the third largest two-wheeler manufacturer in India and one

among the top ten in the world, with annual turnover of more than US $1 billion in

2007-2008, and is the flagship company of the TVS Group. The TVS Group is Indias

leading supplier of automotive components and one of the countrys most respected

business groups.With a combined turnover of more than US$ 4 billion, the TVS Group

employs a total workforce of close to 25,000. Charting a steady growth path of

expansion and diversification, it currently comprises around 30 companies. These

operate in diverse fields that range from two-wheeler and automotive component

manufacturing to automotive dealerships, finance and electronics. Uniting these

multiple businesses is a common ethos of quality, customer service and social

responsibility.

From being the first to introduce a two-seater moped in India (TVS 50 in 1980), to

being the first two-wheeler company in the world to receive the coveted Deming Prize

for Total Quality Management, TVS Motor has consistently set benchmarks for the

industry.

TVS Motor Company Ltd, the flagship company of TVS Group is the third largest two-

wheeler manufacturer in India. The company manufactures a wide range of

two-wheelers from mopeds to racing inspired motorcycles. The company is having their

manufacturing plants at Hosur in Tamilnadu, Mysore in Karnataka and Solan in

Himachal Pradesh. They are also having one unit located at Indonesia. Their

subsidiaries include Sundaram Auto Components Ltd, TVS Motor Company (Europe)

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In October 2003, the company entered into a scheme of arrangement with Lakshmi

Auto Components Ltd and Sundaram Auto Components Ltd. As per the scheme, all the

assets and liabilities of the rubber and plastic businesses of Lakshmi Auto Components

Ltd were transferred to Sundaram Auto Components Ltd on slump sale basis on April 1,

2003 for a consideration of 12.25 crores. The remaining business of Lakshmi Auto

Components Ltd, namely engine components division together with their investments in

other bodies corporate was transferred to the company with effect from April 2, 2003.

During the year 2003-04, the company launched new products such as TVS Centra,

New Victor GL, Fiero F2 & Fx and Scooty Pep. During the year 2004-05, they

launched new products such as TVS Star, New Victor GLX, New Victor GX and

Scooty Pep 'Splash' series.

During the year 2005-06, the company entered into a joint venture with Columbian

party for exploring opportunities in Columbian market with an equity investment

of Rs. 5 million. The company incorporated TVS Motor Company (Europe) B V in

Netherlands as a wholly owned subsidiary of the company with an investment

of Rs. 91.63 crore. During the year, TVS Motor Singapore Pte Ltd, Singapore became a

wholly owned subsidiary of the company with an investment of Rs.30.51 crore.

PT TVS Motor Company Indonesia was incorporated in Indonesia to manufacture

motorcycles and parts with an investment of USD 27.60 million and became subsidiary

of the company in view of it being the subsidiary of TVS Motor Company (Europe) B

V, which holds 75% of the share capital.

The remaining 25% was held by TVS Motor Singapore Pte Ltd. PT TVS Motor

Company Indonesia has acquired lands in Indonesia for setting up a facility formanufacturing two wheelers. During the year 2006-07, the company has established a

new plant in Himachal Pradesh with an annual production capacity of 4,00,000 units

scalable to 6,00,000 units. PT TVS Motor Company Indonesia, a subsidiary of the

company, established a manufacturing facility at Karawang, near Jakarta in Indonesia

with production capacity of 3 lakh vehicles per annum. During the year, the company

launched multiple new products and variants such as, StaR City ES, StaR Sport, Scooty

Teenz and 99 Colors on Scooty PEP. During the year 2007-08, the companycommenced commercial production from its Nalagarh Plant located in Himachal

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Pradesh. They commenced their commercial production from their state-of-the art plant

located at Karawang in Indonesia and launched TVS Neo, which is exclusively

developed for the Indonesian market. During the year, the company launched various

new products and variants such as TVS Flame, Apache RTR, StaR Sport, StaR City 110

cc, Scooty TeenZ Electric, TVS Tru4 Oil.

In March 2008, the company launched their three wheeler, TVS King in two variants,

namely two stroke petrol and two stroke LPG. The company won the Team Tech 2007

Award of Excellence for Integrated use of Advanced Computer Aided Engineering

Technologies in product development. They also won the prestigious SAP ACE 2007

Awards for Customer Excellence in the Most Innovative Netweaver Category for

several SAP implementations that are put in place. In June 2008, the company entered

into a contract manufacturing arrangement with Mahabharat Motors Manufacturing Pvt

Ltd whereby TVS motor cycles will be manufactured at the latter's two-wheeler

manufacturing facility that is located on the outskirts of Kolkata.

TVS would help Mahabharat Motors to set up the factory and provides engineering

support to them. The production would commence from June 2009. During the year

2008-09, the company launched Scooty Streak, a tough and trendy variant of Scooty

Pep+ and Apache RTR RD, premium segment motorcycle. Also, they launched their

three-wheeler, TVS King in six states. In June 2009, T V Sundram Iyengar & Sons Ltd

and their subsidiaries acquired the holding of foreign collaborators, Clayton Dewandre

Holdings Ltd in Sundaram-Clayton Ltd. Thus, Sundaram-Clayton Ltd became a

subsidiary of T V Sundram Iyengar & Sons Ltd. Consequent to this

acquisition; the company also became the subsidiary of TVS with effect from June 3,

2009.

During the year 2009-10, the company launched TVS JIVE and TVS Wego in the

market. They also launched a four stroke three-wheeler with superior features. They

commenced export of TVS Apache to Brazil. Also, they developed a pan India presence

in three-wheelers. In December 2009, the company acquired the entire shareholding of

TVS Energy Ltd. Thus, TVS Energy became a wholly owned subsidiary of the

company.

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In June 2010, they acquired the entire paid up capital of TVS Housing Ltd and thus,

TVS Housing Ltd became a wholly owned subsidiary of the company. In October 2010,

the company won the SAP ACE Award for Consumer Excellence 2010 in 'Best Run

Award in Automotive' category. They also won the Silver EDGE award from

Information Week, a leading IT magazine for in house design and development of Data

Acquisition System for improving shop floor productivity. Information Week annually

recognize enterprises driving growth and excellence through IT.

In November 2010, the company launched TVS TRU4 Premium, a semi-synthetic 4T

Engine Oil. In February 2011, Indian Bank signed an MoU with the company for

financing three wheelers manufactured by the company. In March 2011, the company

introduced ABS (Anti-lock Braking System) in their premium segment motorcycle

TVS Apache RTR 180, giving the bike formidable stopping power and superior braking

control that compliments its high performance capability.

1.2.1. Products and services

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Domestic Range- Two Wheeler

Three Wheeler TVS King

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International Range- Two Wheeler

1.3. Organization Structure of TVS Motor Company

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1.4. TVS Motor Company Strengts

1.4.1. TVS Motor Driven By the Customer

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TVS Motor will be responsive to customer requirements consonant with its core

competence and profitability. TVS Motor will provide total customer satisfaction by

giving the customer the right product, at the right price, at the right time.

1.4.2. TVS Motor- The Industry Leader

TVS Motor will be one among the top two two-wheeler manufacturers in India and one

among the top five two-wheeler manufacturers in Asia.

1.4.3. TVS Motor - Global overview

TVS Motor will have profitable operations overseas especially in Asian markets,

capitalizing on the expertise developed in the areas of manufacturing, technology and

marketing. The thrust will be to achieve a significant share for international business in

the total turnover.

1.4.4. TVS Motor - At the cutting edge

TVS Motor will hone and sustain its cutting edge of technology by constant

benchmarking against international leaders.

1.4.5. TVS Motor - Committed to Total Quality

TVS Motor is committed to achieving a self-reviewing organization in perpetuity by

adopting TQM as a way of life. TVS Motor believes in the importance of the process.

People and projects will be evaluated both by their end results and the process adopted.

1.4.6. TVS Motor - The Human Factor

TVS Motor believes that people make an organization and that its well-being is

dependent on the commitment and growth of its people. There will be a sustained effort

through systematic training and planning career growth to develop employees talents

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and enhance job satisfaction. TVS Motor will create an enabling ambience where the

maximum self-actualization of every employee is achieved.

1.4.7. Plant Location

TVS Motor currently manufactures a wide range of two-wheelers from mopeds to

racing inspired motorcycles produced in various plants.

Plant No Plant Location Two-wheeler Models

I Hosur TVS XL Super, TVS XL Duty, TVS Wego

II Hosur Star, Star City, Star Sports, Victor,Victor GX, Victor GLX, Flame, Max 4R,Jive

III Hosur Gears, Shafts, etc.,

IV Mysore Apache, Scooty, Scooty (Pep, Pep+, Streak,Teenz), TVS XL DutyVI Mysore

VII Himachal Pradesh (HP) Star City, Star Sports, TVS XL Duty

VIII Indonesia Neo, Rockz, Tormaz

IX Hosur 3 wheeler (Auto 2 & 4 Stroke)

2. Literature Review

In general, cost means the amount of expenditure (actual or notional) incurred on, or

attributable to a given thing.

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However, the term cost cannot be exactly defined. Its interpretation depends upon the

following factors:

The nature of business or industry.

The context in which it is used.

In a business where selling and distribution expenses are quite nominal the cost of an

article may be calculated without considering the selling and distribution overheads. At

the same time, in a business where the nature of a product requires heavy selling and

distribution expenses, the calculation of cost without taking into account the selling and

distribution expenses may prove very costly to a business. The cost may be factory cost,

office cost and cost of sales and even an item of expense.

For example, prime cost includes expenditure on direct materials, direct labor and direct

expenses. Money spent on materials is termed as cost of materials just like money spent

on labor is called cost of labor and so on. Thus, the use of term cost without

understanding the circumstances can be misleading.

Different costs are found for different purposes. The work-in-progress is valued at

factory cost while stock of finished goods is valued at office cost. Numerous other

examples can be given to show that the term cost does not mean the same thing under

all circumstances and for all purposes. Many items of cost of production are handled in

an optional manner which may give different costs for the same product or job without

going against the accepted principles of cost accounting. Depreciation is one of such

items. Its amount varies in accordance with the method of depreciation being used.

However, endeavour should be, as far as possible, to obtain an accurate cost of a

product or service.

2.1. Elements of Cost

Following are the three broad elements of cost:

2.1.1. Material

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The substance from which a product is made is known as material. It may be in a raw or

a manufactured state. It can be direct as well as indirect.

a. Direct Material

The material which becomes an integral part of a finished product and which can be

conveniently assigned to specific physical unit is termed as direct material. Following

are some of the examples of direct material:

All material or components specifically purchased, produced or requisitioned from

stores.

Primary packing material (e.g., carton, wrapping, cardboard, boxes etc.)

Purchased or partly produced components

Direct material is also described as process material, prime cost material, production

material, stores material, constructional material etc.

b. Indirect Material

The material which is used for purposes ancillary to the business and which cannot be

conveniently assigned to specific physical units is termed as indirect material. Tools,

consumable stores, oil and waste, printing and stationery material etc. are some of the

examples of indirect material. Indirect material may be used in the factory, office or the

selling and distribution divisions.

2.1.2. Labor

For conversion of materials into finished goods, human effort is needed and such

human effort is called labor. Labor can be direct as well as indirect.

a. Direct Labor

The labor which actively and directly takes part in the production of a particular

commodity is called direct labor. Direct labor costs are, therefore, specifically and

conveniently traceable to specific products.

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b. Indirect Labor

The labor employed for the purpose of carrying out tasks incidental to goods produced

or services provided, is indirect labor. Such labor does not alter the construction,

composition or condition of the product. It cannot be practically traced to specific units

of output. Wages of storekeepers, foremen, timekeepers, directors fees, salaries of

salesmen etc, are examples of indirect labor costs.

Indirect labor may relate to the factory, the office or the selling and distribution

divisions.

2.1.3. Expenses

Expenses may be direct or indirect.

a. Direct Expenses

These are the expenses that can be directly, conveniently and wholly allocated to

specific cost centers or cost units. Examples of such expenses are as follows:

Hire of some special machinery required for a particular contract.

Cost of defective work incurred in connection with a particular job or contract etc.

b. Indirect Expenses

These are the expenses that cannot be directly, conveniently and wholly allocated tocost centers or cost units. Examples of such expenses are rent, lighting, insurance

charges etc.

2.1.4. Overhead

The term overhead includes indirect material, indirect labor and indirect expenses.

Thus, all indirect costs are overheads. A manufacturing organization can broadly be

divided into the following three divisions:

Factory or works, where production is done.

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Office and administration, where routine as well as policy matters are decided.

Selling and distribution, where products are sold and finally dispatched to

customers.

Overheads may be incurred in a factory or office or selling and distributiondivisions.

Thus, overheads may be of three types

a. Factory Overheads

They include the following things

Indirect materials used as an ancillary in the production process such as tools.

Indirect material used in a factory such as lubricants, oil, consumable stores etc.

Indirect labor such as gatekeeper, timekeeper, works managers salary etc.

Indirect expenses such as factory rent, factory insurance, factory lighting etc.

b. Office and Administration Overheads

They include the following things:

Indirect materials used in an office such as printing and stationery material,

brooms and dusters etc.

Indirect labor such as salaries payable to office manager, office accountant,

clerks, etc.

Indirect expenses such as rent, insurance, lighting of the office.

c. Selling and Distribution Overheads

They include the following things:

Indirect materials used such as packing material, printing and stationery

material etc.

Indirect labor such as salaries of salesmen and sales manager etc.

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Indirect expenses such as rent, insurance, advertising expenses etc.

Elements of Cost

Direct material

Direct labor

Direct expenses

Overheads

Factory overheads

Selling and distribution overheads

Office and administration overheads

Indirect material

Indirect labor

Indirect expenses

Indirect material

Indirect labor

Indirect expenses

Indirect material

Indirect labor

Indirect expenses

2.2. Components of Total Cost

2.2.1. Prime Cost

Prime cost consists of costs of direct materials, direct labors and direct expenses. It is

also known as basic, first or flat cost.

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2.2.2. Factory Cost

Factory cost comprises prime cost and, in addition, works or factory overheads that

include costs of indirect materials, indirect labors and indirect expenses incurred in a

factory. It is also known as works cost, production or manufacturing cost.

2.2.3. Office Cost

Office cost is the sum of office and administration overheads and factory cost. This is

also termed as administration cost or the total cost of production.

2.2.4. Total Cost

Selling and distribution overheads are added to the total cost of production to get total

cost or the cost of sales. Various components of total cost can be depicted with the help

of the table below:

Components of total cost

Direct materialDirect labor

Direct expensesPrime cost or direct cost or first cost

Prime cost plus works overheadsWorks or factory cost or production cost or

manufacturing cost

Works cost plus office andadministration overheads

Office cost or total cost of production

Office cost plus selling and

distribution overheadsCost of sales or total cost

3. SWOT Analysis

3.1. Strength:

There are mainly three production strategies followed for production planning.

Chase strategy

Level strategy Mixed strategy.

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Chase strategy

The chase strategy attempts to match production to meet demand in each time period,

using overtime, layoffs and new hires, temporary help, or contractors. The chase

strategy does not use any changes in inventory. This strategy keeps investment in

inventory quite low and is particularly applied where the inventory holding cost is very

high, particularly in case of luxury goods; also this strategy assumes that cost of

changing the capacity is quite low.

Level Strategy

This strategy attempts to maintain an average production level throughout the planning

horizon and use the inventory as a buffer in case of hike in seasonal demand. In months

where demand is low production will exceed demand, with the balance going into

inventory? In months were demand exceeds production during the peak season months

the inventory is drawn down to replace the missing production as required by the

demand. The level strategy uses enough workers to manufacture the required

production without resorting to either subcontracting or overtime to make up for

shortages. The number of workers required is found by dividing the cumulative demand

for the year by the available working days to find the number required per day, then by

the production per worker per day to find the number of workers.

The aim of the level strategy is to arrive at production smoothing level at which the

costs, which includes the sum of setup costs, fixed costs, production costs and inventory

holding costs to an optimum minimum value. We adopt the level production strategy

where its not possible to change the production capacity easily and the cost of holding

inventory is also less.

Advantages of level strategy

Although production smoothening is difficult to achieve, but has a high pay-off. Below

are some of the benefits of converting to a level production system.

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Flexibility make what the customer wants, when they want it.

Balanced use of production resources

Smoothed demand and flow of parts throughout the factorys entire supply chain.The ability to standardize production and work.

Scheduling is easier.

3.2. Weakness

Planning involves three items. First is the work force level, the number of workers

required for production, second is production rate, the number of units produced per

time period .The final item is the inventory level. This is the remainder of unused units

carried from the last time period.

The problem is for each time period to find a production level, inventory level, and

number of workers that will meet the required forecast. This must be done at minimum

cost.

There are a number of things we try to minimize. These are costs, inventory, work force

changes, overtime, use of subcontractors, changes in production rate, number of

machine set-ups, and idle time. At the same time we try to maximize customer service

and profits.

3.3. Opportunities

There is a wide variety of opportunities in all the developing nations as the

employment rate

gets increased. Recently TVS Motor Co. Ltds July sales grew 14.3% from a

year ago,

although it was flat when compared with the previous month. This was despite a

price

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Hike taken across most product categories in early July.

Motorcycle sales grew in line with rivals at about 15%. Higher scooter and three-

wheeler sales augur well for the firm, as these two segments clock better margins. July

scooter sales were up 22% over the year-ago period, with a similar growth registered

for the four months until July. The segments share of total sales grew by two

percentage points to 23% from a year ago. Three-wheeler sales in July rose 9%,

although this segment comprises only a small portion of total sales.

Therefore there might be a need for more number of customers due to the value of the

brand as well as the growing demand in the market. Moreover the company vision can

also be sustained as the growth is always seen. This might a huge benefit for the

company in the long term perspective. The production also seems to be standardized as

the market share of the company is never seen highly volatile in the current market.

Infact all the quarter results are seems to be positive, investors may start tend to look at

future prospectus of the company for their investment. The earnings per share of the

company have seen significant change for every year on year. Moreover, in the

financial year 2011-2012, the government does not impose any excise duty for

automobile sectors which is been a great boost for the sector.

3.4. Threats

As the countrys inflation started to move on the upside direction, the consumer goods

rates have also been increased subsequently. India have seen a fuel hike of more than

25% in the last few years which is not a good sign for automobile industries. However

the reserve bank of india have already increased purchase rate by twelve times in the

last fifteen months. This is probably due to increase of double digit growth in inflation

rate.

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The term Industrial Relations comprises of two terms: Industry and Relations.

Industry refers to any productive activity in which an individual is engaged. By

relations we mean the relationships that exist within the industry between the employer

and his workmen.

The term industrial relations explain the relationships between employees and

management which stem directly or indirectly from union-employer relationship.

Industrial relations are the relationship between employees and employers within the

organization settings. The field of industrial relations looks at the relationship between

management and workers, particularly groups of workers represented by a union.

Industrial relations are basically the interactions between the employers, employees and

the government, and the institutions and associations through which such interactions

are mediated.

4.1. Purpose of the project

Currently the major issue in which all the productions company faces is the dispute

between the team leaders and the operators who works in shop floor. There may be

several aspects which may cause the misunderstandings, but ultimately this would

probably affect the overall industrial growth of the companies. So in order to perform

well in shop floor, every team leader needs to undergo a rigorous training frequently in

order to maintain the relationships and also in the performance aspect.

This is one of the key features in the TVS Motor Company as they used to sort the

overall performance by the way of industrial education. By doing so every team leader

can understand his duties well in the shop floor and also can able to perform well.

Moreover it is also the duty of the unit managers to often check whether the training

have inculcated any sort of development in their behaviour.

4.2. Objectives

By establishing the training program for the team leaders, there will be considerable

amount of knowledge will be imparted towards them for the growth as well as the surge

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in production. Some of the key aspects in which the team leader would infer from the

training program are :

There will be no friction between the workmen and the supervisors. There wont be any kind of stoppage in the shop floor.

The performance of the output will be increased as the relationship between the

team

Leader and the operators are well maintained.

They will maintain the fundamental values of TVS.

Scope

The projects key stakeholders are operations and finance department of the company.

They tend to maintain a disciplined approach to increase in the overall production for

year on year. The scope of the project lies that how the performance of the team leaders

and unit managers affects the production area how the Experiential Learning Workshop

(ELW) program helps the team leaders to perform well for increase in the production in

the shop floor.

At the end of the project we would see how the team leaders performance helped in

overall performance of the company by implementing behavioural competencies.

4.2.1 Steps Involved in the project

Understanding about the plant setup and production.

Understanding about the process of procurement of material for production.

Finalizing the scope and specific objective of the project.

Data Collection.

Converting the data into proper formats.

Calculation and analysis of the data for each area of the scope.

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Collecting feedback from the team leaders

Collecting feedback from Unit managers

Based on the historic data and figures evaluate the performace of the team

leaders.

5. Details about the project

5.1. Competency

Competency can be defined as the combination of skill, knowledge and behaviours

important for success of the organization, personal performance, and enhanced

contribution. Competencies can be obeserved and developed. Competenchy for a job

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can be defined as a set of human attributes that enable an employee to meet and exceed

expectations of his internal as well as external and stake holders.

5.1.1.Job Description and competency

Every job has a unique set of relationships, responsibilities , objectives and assigned

resources. Job description briefly tells about purpose of the role, customers, mission,

role description, managing points, check points and competency requirement. Based on

the role competency requirement differs.

5.1.2. Elemental Competencies

Competncy required for a particular job depends on many factors. The factors include

social culture, nature of business, business environment, organizationsl structure, duties

and responsibilities, nature of processess and assigned activities, attitude and motives of

colleagues, superiors and subordinates.

Competency for any job position at a particular time is a unique set and as organization

has many different job positions, managing many such sets is a difficult task. Hence for

the purpose of effective management, the job competency is divided into elemental

competencies.

A job consists of many different types of tasks, thus requiring different elemental

competencies. The elemental competencies can be standardized, precisely

differentiated, developed into a model across the organization, and are easier to

identify, study, understand, map, assess and develop.

5.2 The Multifaceted Nature of the Job Analysis

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Job Analysis

Job Description

Job Specification

Recruiting

Selection

Strategic HR

Planning

Employee

TrainingEmployee

Development

Career

Development

Labour

Relations

Safety and

Health

CompensatePerformance

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In a nutshell, use of Job Analysis is to

Help the company remain profitable and competitive

Help the company keep up with technology

Prevent employees from being overworked

Help the company stay in compliance with government regulations

Drucker identifies five practices essential to business effectiveness that can, and must,

be learned:

* Managing time

* Choosing what to contribute to the organization

* Knowing where and how to mobilize strength for best effect

* Setting the right priorities

* Knitting all of them together with effective decision-making

5.3. Productivity and Employee Motivation

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Productivity

EmployeesResourcesSystemsProcesses

Goods ProducedServices DeliveredOrganization

By MakingWorkEasierSimplerQuickerRewardingSafer and Fun!

Improves Employee

Motivation


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5.4. Types of competencies

Behavioural competency

Functional Competency

Behavioural competencies refer to personal attributes or characteristics (i.e. motives,

Attitudes, values) that describe HOW a job or task is performed as opposed to the

particulars of the job or task. For instance, competencies like flexibility, integrity,

teamwork or self-confidence are personal characteristics, demonstrated through on-the-

job behaviours, which can be applied in any number of job-related situations as

compared to a specific technical skill or knowledge set.

The definitions provided below are not exhaustive and are intended to give an overview

of the types of behaviours associated with each competency. These behaviours are

organized along a hierarchical scale, or a series of statements that expand on a generic

description and provide detail about what the behavioural competency looks like at

increasing levels of performance.

In other words, each level is noticeably more complex and more difficult to perform

than the previous. As well, if an individual has demonstrated behaviours at a higher

level on a given scale, it is assumed they are capable of the behaviours outlined in the

lower levels.

Causes of non-productive time include

Slack start and quit times

Poor scheduling

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Assess your style as a leader

Understand and demonstrate the skills of supervision like:

Job & resource allocation

Delegation

Establishing work plan & monitoring goals to achieve results

Managing people effectively

Handling grievances

Be able to assess needs and requirements of subordinates.

Develop and motivate subordinates.

5.5.5. Rigor in execution

Module Objectives

Pre Course Test and Setting Expectations

Life and Roles of Time

Mapping and Measuring Time Wasters

High Performance Work Culture and Execution Excellence - I

Prioritization Principles - Tasks and Activities

High Performance Work Culture and Execution Excellence - II

Execution Enablers

Assertiveness Skills

Meeting Skills

Post Course Test

Feedback

Conclusion of the Workshop

5.5.6. Emotional Quotient

Module Objectives:

Effectively understand yourself and others and relate well to people

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Is able to manage emotions when faced with hostility, challenge,

Conflict, pressure of timelines and excessive workload.

Define a team and differentiate individual, group and a team.

Explain the advantages and disadvantages of team working.

Identify the key components and characteristics of effective team working

Explain various stages of team formation and its characteristics

Identify the problems and issues that arise while working in teams

Identify and explain team roles , identify individual role preferences and role

gaps in the team

Develop strategies to fill the role gaps

Practice team building skills and develop high performance team culture

These are some of the important behavioural competencies which would be inculcated

for each and every Team leaders. This would able to acquire him a through knowledge

about the importance of his job. It would help him actively seeks feedback and act

accordingly.

Moreover it is the duty of the team leader to look after the production rate, quality

importance, productivity, loss/waste reduction ad safety. These are some of the

important parameters of every team leaders.

5.6. Team Leaders Job Description

Sunrise and Sunset Communication

Organize Resources

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Maintain and improve 2S

Audit JH

AchieveProduction Plan

Conduct Hourly PDCA

Confirm Quality

Monitor Efficiency of workmen

Update VCS

Training of workmen

Respond to workmen issues

Work as reliever

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5.6.1. Team Leader Orientation

Objective

Methodology

Competency Assessment

Evaluation Guidelines

Training

Annual Calendar

Review System

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5.6.2. Objective & methodology

The team leader should be able to

Deliver Hourly output from his cell/Zone/Bay

Maintain the quality level consistency

Maintain and improve 2S score in his cell/Zone/Bay

He should able to deliver this results 3 months from the date of positioned as

team leader.

5.6.3. Competency Assessment

Competency Assessment is done for team leaders at the end of the first year

The orientation and training programs are planned based on competency

requirement for first year progression team leader.

Evaluation Guidelines:

Three levels to do the evaluation and training programs.

Level 1- Workmen Qualification

Level 2- Readiness as team leader

Level 3- Certification for team leader CL 1

5.6.4. Training and Evaluation

General TVSM practices, systems and foundation on Product/Process and the team

leader needs to undergo an orientation program for the period of eight weeks. After

eight weeks of training on general TVSM practices and systems and foundation on

product and process training, the team leader will be deployed in their allocated unit.

Moreover every week Saturday there will be a review on last week learning points and

training on next week learning. Some of the learning topics that will be covered are

knowledge test and genba test. These are the most important tests in which every team

leader needs to undergo in their initial phase of job.

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6. Extensive Problem Analysis

Industrial Relations on the shop floor results in some the following aspects

Friction between workmen and supervisors

Refusal of work

Line stoppage

Loss of output in the production area of the company

Fundamental values of TVS

Achievements of basic Quality targets

Managers focus on business issues

The following above aspect will lead to decrease in production, conflicts between the

work men and the team leaders/ unit manager. Moreover there will be some relationship

issues due to immaturity. Also one may fail to acknowledge genuine medical/family

problems.

There might be lack appreciation for good work and also lack of technical ability. Some

of the other reason is the issues for granting of leave to the work men at times when

they ask for. Response by the team leader might be rude at times which does create a

unusual argument between the two. Micro monitoring the senior work men can

sometimes be very uneasy for them. Unusual work distribution and overloading hard

working persons may also cause unnecessary problems.

Moreover every team leader needs to supervise workers who have trained during their

on the job training program. Another important task for the team leaders are

convincing senior workmen to stay overtime or either work in other lines due to

absenteeism.

Therefore the team leader needs to be more aggressive at work which is far more

important for any production company. Sometimes minor issues may lead to huge cause

in the shop floor. Team leaders do face critical times during production hours. By notmatch with the work men there will be a huge variance in the production since the team

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leader needs to understand the personal issues, complaints of health problems of

workers. Inadequate attention paid while mentoring can also be declared as a major

problem issue in shop floor.

6.1. Solution for the Problem

Every problem has its own way approaching for a desired solution. The important

aspect to note here is how well the team leaders performance should be needed in order

to have a good industrial growth for a company.

Behavioural competency assessment

SINo

Behaviouralcompetency

Indicators

Notatall(1)

To alittle

extent(2)

Tosomeextent

(3)

To agreatextent

(4)

To averygreatextent

(5)

1Interpersonalrelationship

Displays positive gesturesand body language

Appreciates good work

Provides appropriate feedback

Provides and Seeks supportfrom team members

Understands and managesconflicts

Displays care and concernfor others

2 Communication Gives clear instructionswith the context

Takes instructions clearlyand understands thecontext

Listens actively anddemonstratesunderstanding - Clarify,

paraphrase and summariseeffectively

Avoids judging andinterruptions - Not being

biased

Chooses appropriate mediaand language

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Closes the loop by givingand receiving feedback

3Personal leadership

Self awareness &management, Stressmanagement

Periodically evaluates self -Strengths and Areas ofimprovement

Actively seeks feedbackand acts on them

Takes responsibility andholds himself accountable

Displays high energy andenthusiasm

Is proactive - Anticipatesand takes action

Displays self discipline andself control

Copes with adversity

Manages stress

4 People leadership

Establish workplans ,monitor and acheives goals

Actively reviews and seeksupport from superior and

peers within and outsidethe function to realise theset goals

Takes keen interest to learnon and off the job

Effectivly utilises thefeedback to improve hiscompetence and

performance

Actively participates inSIT/CFT projects

Actively supports learningand development needs of

his team members

5 Rigor in execution

Delivers work plans andadheres to timelines

Escalates problems andlooks for speedy resolution

Takes initiative and drivestowards task completion

Adheres to establishedsystems and processes

Avoids procrastination

The above table is the feedback form of various types of behavioural competencies andthe indicators are the various disciplines in which each training member must have been

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trained. Hence each team leader needs to be evaluated by their behavioural

competencies.

6.2. Common feedback from the Unit Managers

Unit Managers feed back after 3 to 4 months-

1. Listening capability has improved a lot

2. Putting more efforts to achieve daily targets

3. Maturity level has increased and same can be seen in daily interaction among team

leaders and operators

4. Healthy interaction has increased in workmen and team leaders

5. Communication skill has improved

6. Planning and time management skills are improved

7. Team leaders are working in more systematic way and with less fire fighting

8. Imitativeness has gone up at work place

9. Co operation and coordination can be seen at work place

10. Pro activeness is also reflected by these team leaders

11. Take actions on given direction and come back to managers when ever there is

problem

12. Reduction level has come down and scrap minimization has come down to 0% also

13.Complains from subordinates / operators has reduced.

IR feed back

1. Overall no major complains till date concern to operators and team leaders

relation

2. Team leaders have improved to understand relationship with operators in better

way

3. Team work has been improved in positive way.

7 Performance Output

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7.1. No. of engine loss:-

7.2. Engine rework

7.3. Scrap cost

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213226

0

50

0 0 0

50

213

0

100

200

300

400

500

07-08 08-09 09-10 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

105

50

24

42 42

25

50

40

0

38

75

113

150

'07-'08

'08-'09

09'-10'

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2.0

2.5

3.5

1.83

1.52 1.4

2

1

2

3

3

4

'07-

'08

'08-

'09

'09-

'10



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7.4. Tools & consumable cost

8 Conclusions

TVS Motors company is doing relatively well in the two-wheeler segment, one of thebiggest problem company is facing is dealing with experienced workers, supervising

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48.1

4042.2

20

30

40

50

60

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08-

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workers who have trained during their OJT and handling personal issues etc.This is

mainly due to the lack of technical ability, lack of appreciation for good work by the

team leaders, fails to acknowledge genuine medical problems etc.

Hence it is evident that, by the way of behavioural competency training program it has

been seen that there is an overall surge in the production rate as well as the performance

output of various several other components. Significant change in the scrap cost is also

seen.

Moreover the behavioural training program tends to help the team leaders to keep a

good relationship with the workers those who are working in shop floor. By the way of

training, every team leader gets the best out of the people by developing and

challenging the workers with aspirational goals aligning with those of organizations

goal.

In the report it is seen that how the different competency training program lead to

overall growth of the TVS Motor Company and various competency norms can be

assigned to each unit based on the past performance and future forecasting figures.

tvs motor final report.doc

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