ORGANISATION STUDY OF MRF LTD, VADAVATOOR, KOTTAYAM, KERALA
Submitted in partial fulfillment of the requirements for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION of the Mahatma Gandhi University.
Submitted by;
ARUN K MATHEW Regn No:
Under the guidance of Mr. Balakrishnan Menon
JUNE - 2011 DC School of Management and Technology Pullikkanam, Vagamon, Idukki 685503 Tel: 04869 – 248322,
ORGANISATION ORGANISATIO N STUDY
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DECLARATION
VADAVATHOOR OOR , KOTTAYAM, I here hereby by decl declar aree that that the the orga organi nisa sati tion on stud study y of ‘MRF LTD, VADAVATH KERALA’ is a bonafied study carried out by myself, in partial fulfillment of the requirement for the award
of degree degree in Master of Busines Businesss Administr Administration ation from from Mahatma Mahatma Gandhi Gandhi University University
is a record of the the
original work done by me and no part of it has been submitted earlier for any Degree, Post Graduation, title or recognition in any university or institution.
Place: Pullikkanam
Signature:
Date
Name:
CERTIFICATE OF THE INSTITUTION ORGANISATION ORGANISATIO N STUDY
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ORGANISA ISATIO TION N STUDY STUDY OF MRF MRF LTD, This This is to cert certif ify y that that the the orga organi nisa sati tion on stud study y titl titled ed ‘ ORGAN VADAVATHOOR, KOTTAYAM, KERALA’ is a bonafide record of the work done by Ms ARUN KMATHEW, 3rd semester MBA Student of DC School of Management and Technology, submitted in
partial fulfillment of the requirements for the award of the Masters Degree in Business Administration of Mahatma Gandhi University, Kottayam, Kerala.
Faculty Guide
Principal
Date: Place: Pullikkanam
Examiner I
Examiner II
Signature
Signature
Name
Name
Date
Date
CERTIFICATE FROM THE COMPANY ORGANISATION ORGANISATIO N STUDY
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ACKNOWLEDGEMENT
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If the words are considered as symbols of approval and of gratitude then the following words play the heralding role of expressing gratitude. gratitude. A great time and much effort have gone into developing this organisation study.
First and Foremost, I wish to express my sincere thanks to the Almighty God for giving me strength and guidance in completing this project. I also wish to express my sincere thanks and heartfelt gratitude to Brigadier Ashok Kumar, our esteemed Director,DC School Of Management And Technology for providing me with such an opportunity.
I am especially thankful to my guide Mr. Balakrishnan Menon Sir, for his esteemed guidance, expert expert advice advice and for inspiring inspiring us througho throughout ut the phases phases of this project. project. His unfailin unfailing g guidance guidance and conti continuo nuous us suppor supportt render rendered ed at every every stage stage of my work work has helpe helped d me to comple complete te my endeav endeavor or successfully.
I proudly take this opportunity to express my thanks to Ms.Premela.P.Skariah, Assistant Manager, Welfare, MRF Ltd Kottayam for permitting me to conduct my study. I express my thanks to Ms.Deepthi Mol K.M, MRF Ltd,Kottayam for her support and help. I am thankful to all the officials of MRF Ltd, Kottayam for providing a good environment that helped me to complete this study within the specified time.
Above all, I thank almighty God, my family, friends and others for their support ARUN K MATHEW
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CONTENTS
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CHAPTER
TITLE
PAGE NO.
1
INTRODUCTION
8
2
INDUSTRIAL PROFILE
13
3
COMPANY PROFILE
20
PRODUCT PROFILE
30
MRF KOTTAYAM UNIT
33
ORGANISATIONAL STRUCTURE
39
DEPARTMENT PROFILE
40
PRODUCTION DEPARTMENT
42
(b)
PRODUCTION PLANNING DEPARTMENT
44
(c)
QUALITY ASSURANCE DEPARTMENT
44
(d)
TECHNICAL DEPARTMENT
48
(e)
PLANT PURCHASE DEPARTMENT
52
(f)
RAW MATERIALS STORE DEPARTMENT
52
(g)
SHIPPING DEPARTMENT
53
(a)
ORGANISATION ORGANISATIO N STUDY (h)
ACCOUNTS DEPARTMENT
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CHAPTER 1
INTRODUCTION
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INTRODUCTION
About The Tyre Industry, The tyre industries in India come into existence with establishment of trading outlets by U S based Fire Stone Tyre and Company in1922 and followed by Dunlop Rubber Company in 1926.The Indian Tyre industry has witnessed a Cumulative Annual Growth Rate (CAGR) 7.7% over the last decade. Economic expansion, investments and road developments have all contributed to this Increase in demand for vehicles. This has helped the growth in the tyre industry. The tyre industry is the major consumer of the domestic rubber production. The tyre industry is mainly dominated by organized sector; the unorganized sector holds in bicycle tyres. The major players in the organized sector consist of MRF, Apollo tyres, ceat, and J K Industries, which account of the 63% of the organized tyre market.
About The Company
MRF Ltd was established in the year 1946. The company name is an acronym for “Madras Rubber Factory”. Factory”. It was starte started d by KM Mammen Mammen Mappi Mappilla llaii at Thiru Thiruvot vottiy tiyur ur Chenna Chennai. i. In the year year 1951, 1951, the the company took up the manufacture of trade rubber. MRF Ltd was incorporated towards the end of 1960 and was converte converted d into into Public Public Limited Limited Compan Company y in 1961. 1961. Since Since then then it has emerged emerged as the largest largest tyre tyre manufacturer in India and 12 th largest in the world with turnover of Rs 5800 Cr. with capacity of six million tyres from six production units in India. With a profit margin of 1.3% in tyre manufacturing sector, MRF hold 24% of market share. share.
MRF tyres are rolled rolled out of six interdependent interdependent facilities, facilities, which are built over
450 acres and with over 15,000 dedicated people. MRF has over 3000 strong dealer network with 180 offices. What this means is that the company boasts of the largest range of tyres in India - from heavy duty truck tyres to 2-wheeler tyres, The MRF Pace Foundation is synonymous with training and teaching the world's best fast bowlers.
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Production units of MRF are located at:
1. Tiru Tiruvi vitt ttiy iyur ur ,Ta ,Tami mill Nadu Nadu
2. Kott Kottay ayam am,, Kera Kerala la
3. Meda Medak, k, Andh Andhra ra Prad Prades esh h
4.
Arko Arkona nam, m, Tami Tamill Nad Nadu u
5.
Pondicherry
6.
Ponda, Go Goa
7. Sri Lanka.
The main objective of the company is ‘to attain global standard through continuous improvement in the quality products and service in order to maintain market leadership’. The main strategy of the company in today’s competitive world is ‘cut cost and win the battle’.
IMPORTANCE OF THE STUDY
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The study was conducted at Madras Rubber Factory Limited (MRF), Vadavathoor, Kottayam. MRF Ltd. is one of the well known, most advanced and leading manufacturers and exporters in tyres. The organisation study was conducted in order to understand the functioning of the various departments and activities undertaken by them; organisational structure; roles and functions of different departments; the vision, mission, and objectives of the company, its product profile, rules and regulations in the company etc. Organisational study covered all functional aspects of the organisation. organisation. The study gives us some corporate working exposure. It helps to know about the rubber, and tyre industry which is very important as far as the Indian economy is concerned. It also gives a clear picture of working of a manufacturing organisation and importance of industry in the economic development of a country. The study mainly concentrates on the important functions of the organisation. The activities of each area are carefully studied. OBJECTIVES OF THE STUDY
•
To study about the operations performed at various levels of departments.
•
To know the quality standards of the products.
•
To know about MRF Ltd as an organisation
•
To know the functioning of the various departments
•
To observe the routine activities of the workers in various level
•
To understand the organisation structure.
METHODOLOGY ORGANISATION STUDY
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Research cannot be contacted abruptly; the researcher has to plan the research process systematically. The research process includes a number of steps. If all the steps are taken in systematic manner the research conducted become quite effective.
Types of Data There are two types of data;
Primary data
Secondary data
Primary data Primary data is those data collected by the researcher for the first time, it is fresh in nature. This data do not exist exist in record recordss or public publicati ations ons.. Here Here primary primary data data is collec collected ted throug through h depart departmen mental tal study study throug through h interactions with different department heads and staffs.
Secondary data Secondary data comprises of the data which have already been collected by another researcher for some other purpose and currently available. The secondary data was collected from the internal records of the company, library reference and internet.
LIMITATIONS
1. Less time time availab available le for an interv interview iew or conver conversatio sation n with the the workers. workers.
2. Only limited limited person personss could could be covered covered under under the the study study
3. The worker workerss were were busy busy with with thei theirr work work
4. Sensitive Sensitive informatio information n was not shared shared by the the company. company.
CHAPTERISATION ORGANISATION STUDY
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The Organisation Study has been presented in the following format:
•
The first chapter deals with the introduction of the study which includes; introduction about the industry and company, importance of the study, objectives of the study, methodology, limitations and chapterisation.
•
The second chapter highlights the industry profile
•
The third chapter deals with company profile. It consists of the study of the company, organisation chart, different operations, operations, products and departments departments of the company.
•
The fourth chapter contains the SWOT analysis.
•
The fifth chapter gives the findings, suggestions and conclusions of the study.
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CHAPTER 2 INDUSTRY PROFILE
INDUSTRY PROFILE RUBBER INDUSTRY
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Rubber is an organic substance from natural resources or synthesized artificially which has the prescribed properties of extensibility, extensibility, strechability and toughness. The scientific name of Rubber is “Heaven Brasiliensis”. It acquired this name because of its ability to erase.
Nearly 85% of the plantations are in the hand of small farmers. The industry pays highest wages to its workers more than those who can earn from other plantations. A rubber tree can help h elp tap regularly throughout the tree remains productive for 30 to 40 years. Indians per hector yield of rubber is the highest in the world (about 1500 kg)
The natural rubber from just 25%of the world requirements the rest is made up with synthetic rubber items from petroleum. But natural rubber is still essential for certain products-nearly 50%to60% of auto and track tyres is natural rubber where synthetic rubber is used for production of tubes. The Indian Tyre Industry
The foreign companies dominated the Indian tyre industry till 1960; however in the latter part of 60’s and early 70’s the Indian industrial, Entrepreneurs’ made a stylish entry into the market alongside collaboration with the automobile sector foundation with in the country. The tyre industry saw the entry of players and with the winds and liberation blowing a midst hue and cry, swept the entire land in 1992 and brought about the role of joint ventures within the industry.
Ever since the first Indian tyre company, Dunlop Rubber Company (Indian) was incorporated in 1926, the type industry has grown rapidly and today it is an Rs.9000 crore industry. The Indian tyre industry produce the complete range of tyres required by the Indian automotive industry, except for aero tyres and some specialized tyres. Domestic manufactures produce for trucks, buses, passenger cars, jeeps, light trucks, tractors (front, rear, and trailer), animal drawn vehicles, scooters, motorcycle, mopeds, and bicycles and off the road vehicle and special defense vehicle.
Indian has 2.61 lakh vill ages, connected by 6.23 lakh kms to metal led roads and 9.81 lakhs kms of unmetalled roads. These villages are linked to small town and cities. There exists a vast potential for the tyre industry in India. The fortune of the tyre industry depends on the agricultural and industrial performance of
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the economy, the transportation needs and the production of vehicles. Hence, this is a very sensitive industry, which has to adapt itself to a highly volatile environment. While the tyre industry is mainly dominated by the organized sector, the unorganized sector holds away in bicycle tyres. The major players in the organized tyre segment consist of MRF Tyres, Apollo Tyres, Ceat, and Jk Industries, which account for 63 percent of the organized tyre market. The other key players include Modi Rubber, Kesoram industries, and Goodyear India, with 11 percent, 7 percent and 6 percent respectively. Dunlop, Falcon, lyre Corporation of India Limited (TCIL), TVS Srichakra, Metro tyres and Bal Krishna Tyres are some of the other players in the industry.
The Indian tyre industry evolves itself around some silent features like:
Adaptability
Innovation
Export
Technology progression
Wide product range for divers’ usage.
The Original Indian tyre market can be categorized into three. They are;
equipment market
Replacement market
Export market
MRF, the largest tyre manufacture in the country, has strong brand equity. While it rules supreme in the industry, other players have created richest markets of their own. The tyre industry is a major consumer of the domestic rubber production. Natural rubber constitutes 80% of the material content in Indian tyres.
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Synthetic rubber constitutes only 20% of the rubber content of the tyre in India. Worldwide, the ratio of natural rubber to synthetic rubber is 30:70. Apart from natural and synthetic rubber, rubber chemical are also widely used in tyres. Most of the RSS- 4 grade natural rubber required by the Indian tyre industry is domestically sourced, with only a marginal amount being imported. This is an advantage for the industry, since natural rubber constitutes 25% of the total raw material cost of the tyres.
The two types of synthetic rubber used in tyres are Poly Butadiene Rubber (PBR) and styrene Butadiene Rubber (SBR). The former is used in most of the tyres, while the latter is mainly used in the radials for passenger cars. Synthetic rubber accounts for 14% of the raw material cost. Unlike in the case of natural rubber, India imports 60% of its synthetic rubber requirements.
On the export front, the Indian tyre companies need to explore newer markets as the existing market for bias truck tyre which accounts for about 45% of the total export volume is nearing saturation. This apart, with rationalization caching up in the foreign markets, the Indian tyre companies need to graduate to radial tyres so as to protect their share in the export market.
At present, radicalization of tyre is low in India except of the car tyre market where 95% of the tyres are radicalized while cross ply tyres is preferred in all other categories. Cross ply tyres are preferred owing to poor road conditions, overloading in trucks, higher cost of radial tyres and poor awareness among the tyre users in the country.
The tyres basically produced in India are
Crossply
Radial tyre
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Raw materials The main raw materials for tyre are;
Rubber
Carbon black
Nylon cord
Chemicals.
GLOBAL SCENARIO
Thailand, Indonesia, China, Malaysia, Vietnam are the major producers of rubber in the world.
The global production fluctuates between 6-8 million tons, with the production of Million tons in 2003, of which Asian countries have produced 6.76 million tons.
On the consumption front, global natural rubber consumption is 7.89 million tons of which 1.9 million ton was consumed in India and China alone. The total synthetic rubber consumption was 1.13 million ton.
Around 60% of the global rubber production is used by the transportation sector. In this sector, natural or synthetic rubber cannot be used individually and has to be blended.
MAJOR WORLD MARKETS
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Tokyo Commodity Exchange, Singapore Commodity Exchange, Osaka Mercantile Exchange are the major exchange undertaking futures trading of rubber. Kurla Lampur, London, New York is the major physical markets. markets.
Government policy (Tyre policy) Tyre Industry Delicensed since in 1987 All categories of new tyre can be exported freely. All categories of new tyre can be imported freely. No wto bound rates for tyres and tubes. All raw materials required for the manufacture of tyres can be imported freely
Custom duties: Tyres Normal rates of basic custom custom duty
10%
Concessional customs duty under trade agreements Asian Pacific Trade agreement (Formerly known as Bangkok agreement)
8.60%
Indo Sri Lanka free trade agreement
nil duty
SAPTA
5%
India Singapore comprehensive Economic
nil duty
Cooperation Agreement Excise Duty: Tyres When imported from Bangladesh, Bhutan, Maldives, Nepal is 10%
Predicted scenario of the industry ORGANISATION STUDY
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Globally, the original Equipment Manufacturer segment constitutes only 30 percent of the tyre market, exports exports 10 percent percent and the balance from the replacement replacement market. In India, India, the scenario is quite quite different different.. Nearly 85 percent of the total tyre demand in the country is for replacement. This anomaly has placed the retreaders in a better position than the tyre manufacturers. Retreading is looming over the tyre industry as a colossal threat. The Coimbatore based Elgi Tyres and tread Ltd., the largest retreader in India, is giving the tyre barons sleepless nights. Retreading is replacing the worn-out tread of the old tyre with a new one. The popularity of retreading stems from the fact that it costs only 20 percent of a new tyre but increases its life by 70 percent to 80 percent. Most of the transporters in India retread their tyres twice during its lifetime, while a few fleet owners even retread thrice. In their zealousness to economize costs, they overlook the reality that retreading reduces the quality of the tyre. It is highly popular in the south unlike in the north where the transporters overload their trucks and have to ply their vehicles in a rough terrain, an environment in which buying a new tyre is the best option.
THREATS The industry, already bogged by over capacity, is facing a severe threat of dumping of cheap tyres by South Korea. Under the Bangkok agreement, signed between India and South Korea in 1976, import of tyres from the latter into India would attract a concessional duty of 33 percent as against the normal tariff of 40 percent. Two years ago, the industry estimated the growth in the passenger car radial demand at 20 percent per annum. However, the auto recession has hit them badly. But South Korea made a killing by dumping cheap car radial tyres and walked away with 11 percent of the tyre market. Another threat to the industry is the price of its raw materials, most of which are petroleum by-products. Carbon, synthetic rubber and nylon tyre cord are offshoots of petrochemicals. Thus, the future of the industry will swing with the supply of crude oil. The biggest threat, however, is yet to fully materialize. It will be from global majors like Bridgestone and Michelin, which control 36 percent of the global tyre market. These players have set up their bases in Southeast Asia and the slump of the markets in this region coupled with the vast growth potential of the Indian market, is beckoning them towards India. Bridgestone has tied up with ACC for a 100 percent radial tyre unit and Michelin is also marketing its products through retail outlets. outlets. The industry is driven more by volumes than by margins and each of the big
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five in the global tyre industry Continental, Michelin, Goodyear India, Pirelli and Bridgestone generate an annual tyre production equivalent to the total demand of the Indian market.
Major Market Player s and Their Market Share
Last Price
Market Cap. (Rs. cr.)
Apollo Tyres
Sales Turnover
Net Profit
Total Assets
72.50
3,654.18
5,490.74
198.25
2,859.55
6,956.00
2,950.14
7,463.74
353.98
2,643.17
Balkrishna Ind
155.50
1,503.04
1,394.30
208.73
1,125.10
JK Tyre & Ind
100.75
413.67
4,831.22
61.32
1,553.60
C e at
102.05
349.46
3,516.33
22.28
1,058.11
TVS Srichakra
306.00
234.31
706.39
29.82
260.29
MRF
Some of the major players in the Indian tyre industry are MRF, Ceat, JK industries, Apollo tyres, Bridgestone India, Goodyear India, Falcon Tyres and TVS Srichakra.
Name of the company
MRF Ltd (Market Leader)
ORGANISATION STUDY
Market Share
24%
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Apollo Tyres Ltd.
21%
JK Tyre & Industries
18%
Ceat Ltd.
13%
Others
24%
The prospectus of tyre exports from I ndia appears healthy; following efforts by Indian companies to increasing entering into out sourcing agreement with tyre producers in South-east Asia, Eastern Europe and Latin America. Overall, tyre manufacturers are likely to tap the export market in an effort to boost sales. The increasing exports of bus and truck tyre from India to developing countries is because of the fact that developing countries is because of the fact that developing countries are unable to source them from developed countries as these are no more produced there. Tyre imports are unlikely to pose a threat to the domestic industry, given that domestic prices are lower than international international tyre prices. prices. In the domestic market, tyre manufacturers are expected to increasingly focus on expanding their dealership networks and explore possibilities of tie-ups among themselves to penetrate the growing customer base. They are also likely to pursue innovative measure to improve customer awareness. The consolidation of the Indian tyre industry is likely to continue in the coming years through mergers among existing players. The industry is likely to expand through a combination of organic and inorganic growth. While organic growth would come from raising efficiency levels, inorganic growth would be achieved through alliances and mergers & acquisitions.
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CHAPTER - 3
COMPANY PROFILE
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COMPANY PROFILE
Madras R ubber ubber Factory, popularly known as MRF, is a major tyre manufacturing company located in
Chennai, Tamil Nadu, and India. MRF is mainly involved in making vehicle tyres. It is India's largest tyre manufacturing company.
The company was established in the year 1946. The company name is an acronym for Madras Rubber Factory. MRF Ltd was started by a young pioneer called K.M.MAMMEN MAPILLAI as small toy balloon manufacturing unit in a small shed at Thiruvottiyur in Chennai. Since then over this long golden 60 years it has emerged as the largest tyre manufacturer in India. It is also the world’s 13
th
largest tyre
manufacturing company. It is one of the largest rubber companies both worldwide and in Indian private sector. MRF holds more than 20% of the market share. It is the only tyre company to straddle the continent with giant manufacturing facilities at Chennai, Arakonam, Kottayam, Goa, Medak, and Pondicherry.
The company carters to all vehicle segment from commercial vehicle and passenger cars to 2 -3 wheelers and tractors and has a strong presence in both radial and cross ply segments. It is also involved in a range of other activities via subsidiaries. Funskool India, a joint venture between Hasbro and MRF LTD. is a major major toy manufacturin manufacturing g company company in the country. country. MRF Pretreads Pretreads offers world class procured tyre retreading service, and MRF Muscleflex is involved in making conveyor belts. It is presently under the leadership of Vinoo Mammen, son of the Late K.M.Mammen Mappillai.
It has a distribution network of more than 2500 outlets in the country, overseas offices in United Arab Emirates, Bangladesh and Vietnam and export tyres in over 75 countries globally. MRF LTD. enjoys of manufacturing the largest range of tyres in India and it has the highest brand preference for superior
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quality, appearance and wearability. It manufactures the largest range of tyres in the country and is the market leader with the largest market share in almost every segment of the tyre industry.
MRF LTD. is the first Indian company to export tyres to the U.S., the very birth place of the tyre technology. It is also the first company in India to manufacture and market Nylon tyres and passenger tyres commercially. In 2007, the company’s turnover crossed INR 50 billion mark. MRF LTD. is the pioneer in motor racing tyres in India. MRF tyres are made to run at speeds exceeding 150 kmph, at which they are exposed to extreme conditions of speed and traction. The molecular stability of the rubber compounds is tested against severe gravitational stress. MRF’s tyre experts and rubber technologists are present at every stage to observe, analyze and gather information at the pits and the dirt track, which they pass on to the R & D department. This is then reviewed and used to safer and better quality tyres, not only for the formula cars and racing bikes, but also for cars that rough it out on the tough Indian roads every day.
OBJECTIVES OF THE COMPANY
The main objective of the company is ‘to attain global standard through continuous improvement in the quality products and service in order to maintain market leadership’. The main strategy of the company in today’s competitive world is ‘cut cost and win the battle’. As the number of accidents in similar factories is comparatively more, the emphasis of the company is ‘accident free safe production’.
MRF Ltd achieves the objectives by taking the following actions;
•
Produc Productt / proces processs improv improveme ement nt by perfor performan mance ce monit monitori oring ng and prompt prompt servic servicee to the customer.
•
Upgradation of all the machinery to meet the increasing needs of customer.
Continuous training is given to all employees in order to acquire necessary skills and knowledge and improve the quality of work life
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MRF MISSION To continue developing an aggressive, independent national advocate for the advancement of motorcycling and its associated lifestyle which is financially stable and exceeds the needs of motorcycling enthusiasts.
MRF VISION MRF will be a significant global player delighting customers worldwide through •
Leadership in technology
•
Excellence in manufacturing
•
World class systems
Driven by a team of motivated by high performers to achieve profitable growth.
Major brands. Superlug
-
country’ largest selling truck tyre.
Shakthi
-
country’ largest selling tractor tyre.
Zigma
-
country’ largest selling radial car tyre.
Nylogrip
-
country’ largest selling selling two wheeler tyre. tyre.
Legend
-
country’ largest selling conventional car tyre.
The six production units of MRF are located in:1.Tiruvottiyur, Tamilnadu. For automobile tyres. 2.Arkonam, Tamilnadu. For bicycle, scooter, auto rickshaw tyres. 3.Goa for automobile tyres and procured tread rubber. 4.Kottayam, Kerala. For automobile tyres, tubes, procured tread rubber. 5.Medak, Andrapradesh. For automobiles. 6.Pondicherry for radial tyres.
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EVOLUTION OF MRF A race from the birth to success………… 1946
A young entrepreneur, K. M. Mammen Mappillai, opened a small toy balloon manufacturing unit in a shed at Tiruvottiyur, Madras (now Chennai). 1949
Although the factory was just a small shed without any machines, a variety of products, ranging from balloons and latex-cast latex-cast squeaking toys to to industrial gloves gloves and contraceptives, contraceptives, were produced. During this time, MRF established its first office at 334, Thambu Chetty Street, Madras (now Chennai), Tamil Nadu, India. 1952
MRF ventured into the manufacture of tread rubber. And with that, the first machine, a rubber mill, was installed at the factory. This step into tread-rubber manufacture was later to catapult MRF into a league that few had imagined possible. 1956
The quality of the product manufactured was of such a high standard that by the close of 1956, MRF had become the market leader with a 50% share of the tread-rubber tread-rubber market in India. So effective was was MRF's hold on the market, that the large multinationals had no other option but to gradually withdraw from the tread rubber business in India. I ndia. 1961
With the success achieved in tread rubber, MRF entered into the manufacture of tyres. MRF established a technical collaboration collaboration with the Mansfield Tire & Rubber Company of USA. Around the same time, it also became a public company. company. It set up a pilot plant for tyre manufacture at Tiruvottiyur, Madras (now Chennai). The Chief Minister of Madras Mr. K. Kamaraj released the first tyre from the tyre plant.
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1963
On June 12, 1963, India's first Prime Minister, Late Pandit Jawaharlal Nehru laid the foundation stone for the Rubber Research Centre at Tiruvottiyur to commemorate the inauguration of the Tiruvottiyur factory. 1964
With the commissioning of the main plant in 1964, MRF also made progress in the export of tyres. An overseas office at Beirut (Lebanon) was established to develop the export market, and it was amongst India's very first efforts on tyre exports. This year also marked the birth of the now famous MRF Muscleman. 1967
MRF became the first Indian company to export tyres to USA - the very birthplace of tyre technology. 1970
MRF inaugurates its Kottayam unit 1971
MRF opens its factory in Goa 1972
MRF's Arakkonam plant is inaugurated 1973
MRF scored a major breakthrough by being among the very first in India to manufacture and market Nylon passenger tyres commercially. commercially. 1978
MRF developed the MRF Superlug-78, a sturdy tyre for heavy-duty trucks. The tyre was a significant improvement over its existing products, and went on to become the country's largest selling truck tyre in later years.
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1979
MRF's turnover crossed INR one billion. 1980
MRF entered into a technical collaboration with the B.F. Goodrich Tyre Company of USA, which was involved with the development of tyres for the NASA space-shuttle. With this began a significant exercise in quality improvement and new product development. 1984
Sales crossed INR two billion. MRF tyres were the first tyres selected for fitment onto the Maruti Suzuki 800 - India's first small, modern car. 1985
MRF Nylogrip tyres for two-wheeler vehicles were launched. 1986
MRF was selected by the National Institution of Quality Assurance for their most prestigious award. Pitted against 20 tyre companies worldwide, MRF also won 6 Quality Improvement Awards instituted by the B.F. Goodrich Tyre Company from USA. 1987
MRF crossed the INR three billion mark and also became the No. 1 tyre company in India. MRF Legend, the premium nylon car tyre was introduced. 1988
The MRF Pace Foundation was set up, with international pace bowler, Dennis Lillee as its Director. Not long thereafter, pace bowlers trained at the Foundation were selected for the Indian Cricket Team. 1989
1989, MRF was the clear market leader in every tyre segment. Once again, in recognition of excellence, MRF was awarded the Visvesvaraya Award for the Best Business House in South India. MRF collaborated with Hasbro International USA, the world's largest toy makers, and launched Funskool India. Company also entered into collaborations with Vapocure, Australia to manufacture polyurethane
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paint formulations formulations and with Pirelli for MUSCLEFLEX MUSCLEFLEX Conveyor & Elevator Elevator Belting. MRF opens its MDK unit MRF launched the MRF ZIGMA CC Radial. Synchronizing with the MRF World Series Cricket Tournament for the Jawaharlal Nehru Trophy sponsored by the company. MRF also opened the MRF Tyredrome, India's first tyre company-owned wheel care complex at Madras (now Chennai). 1990
MRF brought the 6th World Cup Boxing Championship to Mumbai - the first of its kind - with 39 countries participating. 1993
K. M. Mammen Mappillai was awarded the Padmashri Award of National Recognition for his contribution to industry - the only industrialist from South India to be accorded this honour until that time. MRF became the first tyre company in India to cross the INR 10 billion mark. In 1993 and 1995, the company was voted by the Far Eastern Economic Review, as one of the ten leading Corporate Groups in India and a Leader in Asia. During the same time MRF was selected as one of India's most admired Marketing Companies by the readers of the A & M magazine. 1995
The company's turnover crossed INR 15 billion. MRF was chosen for fitment on the Daewoo Cielo. 1996
In the Golden Jubilee Jubilee year, Mr & Mrs. Mammen Mappillai received gold gold medal for being the first first 2 employees of the company. A special factory dedicated entirely to the m anufacture of radials was started at Pondicherry. MRF Tyres were also chosen for fitment on the Ford Escort, Opel Astra and Fiat Uno. Further proof of its superior superior quality. 1997
MRF launches its first ever F3 car 1998
MRF launches its Super Lug tyre for trucks
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2000
MRF Launched ZVTS tyres for passenger cars. MRF launched the Smile campaign on Indian roads. 2001
The MRF rally team wins the APRC rally 2002
MRF wins the JD Power award. The MRF Nylogrip Zapper for two-wheelers is launched 2003
MRF wins the JD Power award. MRF registers its second APRC victory. 2004
MRF's turnover crossed INR 30 billion mark 2005
MRF wins its third APRC rally 2006
MRF's turnover crosses the 5000 crore mark 2007
MRF launches ZSLK tyres. MRF launches the Super Lug FS which many users claim to have provided them fuel savings. MRF launches launches the Super Lug 505 - A premium premium mileage, rear fitment truck tyre for national highway operations on rated roads. MRF wins the JD Power award. Australian PM visits the MRF Pace Foundation. 2008
MRF wins the JD Power award again for the 6th time
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Present
It is also involved in a range of other activities via subsidiaries. Funskool India, a Joint venture between Hasbro and MRF, is a major toy manufacturing company in the country. MF Pretreads offers world class procured tyre retreading retreading service, and MRF Muscleflex is involved involved in making conveyor conveyor belts. It is presently presently under the leadership of Vinoo Mammen, son of the late K.M. Mermen Mapp illai
POLICIES OF MRF
1. QUALIT LITY PO POLICY ICY The main quality objective of the company is to ‘ maintain market leadership through continuous quality performance” 2. SAFE SAFETY TY POLI POLICY CY Safety and health of the employees shall be the first priority of the company. It is the responsibility of each and every individual in the organisation, regardless of the position he occupies, to ensure that everyone in the factory returns home without any injury. The company offers ‘ACCIDENT FREE SAFE PRODUCTION’ not only in letter but also in spirit, for the benefit of one and all through this policy.
3. ENVI ENVIRO RONM NMEN ENT T POLI POLICY CY The environment environment Policy of MRF LTD. is ‘to manufacture the company’s products in an environmentally friendly and safe safe manner’ . This is to maintain our products in an environmentally friendly and safe manner. To achieve this goal, all the MRF plants, together with corporate office shall
•
Minimize the impact of our manufacturing activities on the environment especially the air, water, and soil.
•
Comply with all applicable regulatory requirements
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•
•
Develop environmental performance evaluation procedures for continuous monitoring Optimizes the consumption of resources (water, energy and raw materials) by minimizing wastage, recovering and recycling where ever possible.
•
Up gradation of the machinery and pollution control equipment when required
•
Train Train all our employees employees to perform perform their activities activities in an environment environmentally ally responsible responsible land safe manner
At the plant plant level, level, the respec respectiv tivee Senior Senior General General Managers Managers// Genera Generall Manage Managers rs are assigned assigned
the the
responsibility responsibility of carrying out the environmental system by collaborating with corporate corporate functions.. 4. TRAIN RAININ ING G POL POLICY ICY The training policy of MRF LTD. is ‘to provide and develop knowledge, skills and behavior of the company’s employees to continuously improve their performance’ . performance’ . MRF plants along the corporate office join hands to accomplish the following.
Competency evaluations conducted each year identify and document the training needs of the employees.
Design and publish the training calendar and schedule.
Monitor and evaluate training process and out come to asses and to decide the next training cycle requirement.
Collaboration of the activities along with the activities of human resource department plants.
MANAGEMENT
The success or failure of a company is determined by the performance of its management. It has to play a major role in functions such as decision making. Management of MRF LTD. is lead by
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Mr. K.M.Mammen, son of Mr. Mammen Mappillai M appillai who started this company almost 60 years ago.
BOARD OF DIRECTORS K.M. Mammen – Chairman & Managing Director Arun Mammen – Joint Managing Director K.M. Philip – Whole Time Director Dr. K.C.Mammen – Director C.G.Rangabashyam – Director K.D. Parakh – Director Ashok Jacob – Director S. Nandagopal – Director V. Shridhar – Director Vijay R. Kiriloskar – Director N. Kumar – Director Ranjith I. Jesudasen – Director D.M. Choksi – Secretary
INDIAN COMPETITORS OF MRF LTD. 1. CEAT 2. APOLLO 3. J K TYRES 4. MODI 5. GOOD YE YEAR
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6. DUNLOP 7. BRID BRIDG GESTON STONE E.
ORGANISATIONAL GOAL
‘To maintain global standards through continuous improvement in the quality of products and services in order to maintain market leadership’
AWARDS AND ACHIEVEMENTS TNS
MRF voted the "Most Trusted" Tyre Company in India by TNS 2006 global CSR study. J D POWER ASIA PACIFIC
MRF won the award for customer satisfaction not once but 6 times in the last 7 years. CAPEXIL
MRF won the award for exports.
(MRF, 2010)
BRAN BR AND D AMBA AM BASS SSAD ADOR ORS S Former brand ambassadors Leading batsmen in world cricket -
Sachin Tendulkar, Steve Waugh, and Brian Lara.
Current brand ambassadors India - Gautam Gambhir, Rohit Sharma Bangladesh
Ashrafull.
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COMPANY’S PRODUCT PROFILE
Automotive tyres are main products of the company
Truck tyre – Tube tyre and Tubeless tyre
Light Truck tyre
Special tyre for defense
Tyre for industrial application
Agricultural tractor and tiller tyre
Off the road tyres – Solid tyres and earth mover tyres
Passenger tyre – Bias ply and radial
Two/ Three wheeler tyres
Specialized tyre for motor rallies
Non – tyre products
Automotive tubes
Flaps
Conventional tread rubber
Pre- cured tread rubber
Vulcanizing solution
Tyre repair materials
Conveyor belts
Toys
MRF metal coat
MRF wood coat
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MRF glass coat
MRF velour
MRF auto coat
BEYOND TYRES
Paint & Specialty Coatings MRF LTD. manufactures specialist coatings for a wide range of applications. Major MRF paints and specialist coatings are:
MRF Metal Coat
MRF Wood Coat
MRF Glass Coat
MRF Vapocure
MRF Brass Coat
MRF auto Coat
FUNSKOOL TOYS Funskool India Ltd. is a joint venture between MRF LTD. and Hasbro Inc., USA, the world’s largest toy company. This plant is at Goa. The plant produces various models of toys.
MRF MUSCLE FLEX CONVEYOR BELTING MRF LTD.’s collaboration with Pirelli came at a time when the Indian conveyor belting industry was seeking technological momentum. MRF Muscle Flex offers several advantages to buyers of belting in India. The conveyor belt is made from superior rubber compounds with better ageing characteristics.
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CORPORATE GOVERNANCE
MRF’s MRF’s philo philosop sophy hy on corpor corporate ate govern governanc ancee envisa envisages ges the attain attainmen mentt of the highes highestt level level of transp transparen arency, cy, accoun accountab tabili ility ty and equity equity in all facts facts of its operat operation ionss and all its intera interacti ction on with with its stakeholder. In furtherance to the above company has compiled with the cores. MRF – KOTTAYAM UNIT
MRF tyres, tyres, Kottayam Kottayam are one of the most modern modern plants plants that that were were establ establish ished ed in 1969 1969 at Vadavathoor about 7 km from Kottayam town in the state of Kerala. About 10 crores of land was purchased in Vadavathoor village 1968 and the foundation stone for the factory building was made by late Sri.K.M. Cherian, a factory building with in the area of 34200 sq.ft flat was constructed during the period of 1968 – 69 and Ban- bury of 3A size with a capacity of to mix of 10 meter per day was erected and commissioned on 21st July, 1969, with the strength of seven workmen, but presently it is most advanced technology mixing 10 and a full- fledged manufacturing unit providing work and technologies.
In the view of high productivity and very good performance in general, the mixing capacity was enhanced by installing a second Ban-bury of 11 A size with a capacity to mix 48 meter per day during March 1970, with the permission of Goa Government A license to manufacture 4 lacks of automotive tube per annum was transferred and and started production of tubes with seven quarrying quarrying presses.
To enhance the mixing capacity Ban-bury of 1 ID size with a capacity of 54 meter per day was established in 1972. The number of tube presses was increased to 45 presses. A fourth Ban-bury of 1 id size was installe installed d in 1978 1978 to meet meet the increasi increasing ng demand demand for mixing mixing.. At presen presentt 6000 6000 tones tones of variou variouss compounds are dispatched to different units. The level of the tube production has been increased technology and now it has touched a level of 3 lakh number per month.
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Another new product introduced in MRF Kottayam unit during 1993 was flap production. The management also decided to stilt tyre production in Kottayam unit taking amount of the various incentives on tax and power announced though a new industrial policy by the Kerala Govt. the tyre plant with an initial plan to produce 200 numbers of tractors rear to 600 numbers of tractors front tyres per day inaugurated by Chairman Sri. K.M.Mammen Mappilai on 30 th May 1994.
The present turnover of finished goods of kottayam units is Rs. 350 crores per annum. Kottayam units units also started procured procured tread rubber (PCTR) productio production n in August August 1993. 1993. Their fourth place started in 1998. The present lack of production is 450 mt of PCTR per month. Regarding repair materials accrued 70 mt of PCTR cushions ZEG cushions are manufactured and sent all over India. The working capital required per month by the Kottayam unit constitutes more the Rs. 20 Crores. The company mainly goes for credit transaction and the payment is made within one month time duration. TRADE UNION
•
MRFEU - MRF Employee’s Union(CITU)
•
MRFEA – MRF Employee’s Association(INTUC)
PLANTS WITHIN KOTTAYAM UNITS.
The kottayam production unit of MRF has got four plants mainly
1. Tube Pl Plant 2. Tyre Pl Plant 3. Mixing Pl Plant 4. PCTR Pl Plant
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Products at Kottayam Plant
Automotive tyres, tubes, conventional tread rubber, pre-cured tread rubber, repair materials, vulcanizing solution, flap, bladder, envelope, curing bags and solid tyre.
1. AUTO AUTOMO MOTI TIVE VE TYRE TYRES S This This is the the base baseme ment nt on whic which h the the whol wholee supe superr stru struct ctur uree of auto automo mobi bile le rest rests. s. Here Here only only conventional or bias tyres of passenger, jeep, truck and farm tyres are manufactured.
2. AUTO AUTOMO MOTI TIVE VE INNE INNER R TUB TUBE E This component is kept inside the tyre and when inflated, renders strength and impacts profile to the tyre.
3. RETR RETREA EADI DING NG RUBB RUBBER ER It is the material used for retreading the tyre when it gets worn out on usage. These are of two types, conventional and pre-cured tread rubber (PCTR).
4. TYRE TYRE REPAI REPAIR R AND AND PCTR PCTR REPAIR REPAIR MAT MATERI ERIAL ALS S These include PCTR cushion, tread backing cushion. E.g. cushion used for the repair of tyre and PCTR.
5. VULC VULCAN ANIZ IZIN ING G SOLU SOLUTI TION ON This is an aid for vulcanization and is used for retreading of tyres.
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6. FLAP This is kept in between the tubes and tyres. This serves as a protective sheath for the tube from the external damages of the tyre and also as isolation medium, which filters the passage of the heat from the tyre to the tube. This is generally used for bigger tyres.
7. BLADDER This is an element used for curing of tyres, which carries the internal media and is mainly used for captive consumption.
8. CURI CURING NG BAGS BAGS / ENV ENVEL ELOP OPE E It is also used for retreading of tyres. It is spread as a layer over the tyre after application of PCTR and it retains thermal input processes of manufacturing tubes and tyres.
9. MASTICATION The Kottayam plant caters the stock requirement of all the other MRF LTD. units. Mastication is one of the principal activities of the Kottayam unit. The stock generated is also used for captive consumption. The main ingredients for mastication are polymer (rubber), carbon, chemicals and oils. The process of making a homogeneous mixture is carried out in banburies and mills.
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INTERNATIONAL INTERNATIONAL CERTIFICATIONS CERTIFICATIONS
The Kottayam unit of MRF LTD. has got four different categories of International certifications from the respected authorities. They are as follows:
1. ISO – 9001 9001-20 -2000 00 QUALI QUALITY TY MANAG MANAGEME EMENT NT SYSTE SYSTEM M This is the quality management system and quality assurance standard brought into force by the International Standard Organisation (ISO), a certification comprising of the state of the world facility which aims at the standardization of the quality of the products and services to cater to the complete satisfaction of the customer.
2. ISO – 14001 14001-199 -1996 6 ENVIRON ENVIRONMENT MENT MANAGEMEN MANAGEMENT T SYSTEM SYSTEM This is the quality assurance standard prepared for the automobile and related companies. Through this certification, MRF LTD. is to manufacture their products in an environment friendly and safe manner. 3. ISO TS TS: 16 16949 Up gradation of ISO – 9000 from 1 July 2000. It is more customers oriented and works in plan-docheck-act policy. TS – 16949 is awarded for certification of technical standards in this industry. 4. CQC
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KOTTAYAM UNIT – FACTS AND FIGURES
Built-up area
Six lakh square feet
Management staff
252
Regular workmen
1115
Casual workmen
399
Total finished goods production
3400 MT/ month
Total turnover of finished goods
Rs.42 crores/ month
Mixed stock sent to other units
7000 MT/ month
Tyre production
52000 tyres/ month
Total Total produ producti ction on of tubes, tubes, envelo envelopes pes and curin curing g
263000/ month
bags
Flap production
82000/ month
Tread Rubber Production (conventional)
160 MT/ month
PCTR production
330 tonnes/ month
Repair materials
83 tonnes/ month
Vulcanizing solution
32500 liters/ month
Work timings
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Work is carried out at the company 24 hours a day. There are three shifts in a day consisting of eight hours each. Besides those shifts there is also a general shift for the management staff of the company. The shift timings are as follows: First shift
:
7 am to 3 pm
Second shift
:
3 pm to 7 am
Third shift
:
11 pm to 7 am
General shift
:
8 am to 4.30 pm
MARKETING
Tyre and tyre related products are sold under the brand mane “MRF”, and distributed in domestic markets through sales offices, dealers, and franchisees. Conveyor Belts are sold under the brand name “MRF Muscle Flex” to customers directly from Conveyor Belting plant at Arkonam.
The major OEM (Original Equipment Manufactures) customers of MRF tyre and Re Ford India Ltd., General Motors India Ltd., Maruti, Hindustan Motors, Motors, TATA Motors, Ashok Leyland, Honda Siel, Hero Honda, Bajaj, LML Ltd, Honda Motors & Scooters India Ltd., Mahindra & Mahindra, Eicher Eicher Motors, Motors, New Holland Holland Volvo, etc. The major Conveyor Conveyor Belting customers customers are Cement/ Cement/ Steel / Fertilizer / Thermal Power plants, mines and ports. MRF exports tyres and tubes through authorized agents representing countries such as USA, Canada, Mexico, Brazil, Chile, Australia, Philippines, Bangladesh, Sri Lanka, Korea, Egypt, Nigeria, South Africa, Ghana, Kenya, Mauritius, UAE, Afghanistan, Pakistan, Iran, Iraq, Bahrain,-Qatar, Oman, Lebanon, Greece, Turkey, Malta, UK, Uzbekistan etc. MRF conveyor belts are exported to Australia, South Africa, Europe, Canada, Middle East etc.
ORGANISATION CHART OF MRF KOTTAYAM UNIT
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EMBED Excel.Chart.8 \s
Plant Production Manager
General Manager
Plant Account s Manage r
Manager
Assistant
Plant I
Manager
Plant II
Accounts
Plant HR Manager
General
Plant Technical Technical Manager
Plant Quality Assurance Manager
Technical Technical Officer
Supervisor Time office office
Quality Assuranc e Officer
Plant Industrial Engineerin g Manager
Assistant Manager
Plant Senior Security Officer
Securit y Officer
Planning
Plant III Technical Technical Supervis or
Plant IV Staff Foreman
Operator s
Staff Supervisor
Quality Assuranc e
Supervis or
Plant Engineer ing Manager
Electrical Maintena nce Civil Engineeri ng Mechanic al Maintena nce
Guards
Supervis or
Workers
Operator s
Operator s
Workers
Supervis or
Worker s
Workers
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DEPARTMENTS
DEPARTMENTS
MRF LTD gives an insight about the functioning of the different departments. Each department is headed by the general manager who possesses expertise, expertise, knowledge in the area under his supervision. There always exists an ergonomic atmosphere which is often made possible by the close interaction between all members
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in each department. The top management moulds the strategies and policies that make sure that the middle management implements them. Weekly interdepartmental meeting aims at bringing coordination between the different departments. Open forums are held once in a week in all plants where the employees can raise their concerns, suggestions etc…
The various departments headed at MRF Ltd Kottayam can be enlisted below;
•
Production department
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Production Planning Department
•
Quality Assurance Department
•
Technical Engineering Department
•
Plant Purchase Department
•
Raw materials Store Department
•
Shipping (dispatch) Department
•
Accounts Department
•
Industrial Engineering Department
•
Safety Department
•
Security Department
•
Human Resource Department
1. PRODUCTION DEPARTMENT
Production is the primary function of the company and hence all other functions are support functions. Production is carried out in four plants at kottayam unit. They are
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•
Tube plant
plant 1
•
Tyre plant
plant 2
•
Mixing plant
plant 3
•
PCTR plant
plant 4
The following are the main functions of production department.
Planning for production process Every month, a monthly plan is given to the the plant by central planning. planning. Based on the monthly monthly plan- planning department will will prepare a simulation plan by dividing the month into 3 segments of 10 day each.
Material indent and receipt The daily requirement of raw material is calculated at each plant after considering the available inventory and the schedule production for the next day raw material indented is made to raw material store.
Processing Processing is carried out per the technical specification.
Product identification and traceability
Inspection
Structure of Production Department
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Production Manager
Asst.Manage r Production Plant - I
Asst.Manage r Production Plant - II
Supervisor
Asst.Manager
Asst.Manage r
Production Plant - III
Supervisor
Production Plant - II
Supervisor
Supervisor
SHAPE
\*
MERGEFORMAT
Operatives Operatives
Operatives
Operatives
2. PRODUCTION PLANNING DEPARTMENT
Production plan for the coming month will be issued form the Central Planning at Corporate office. Based on this, plant planning in-charge will issue the monthly simulation plan to central planning, plant production and to shipping. Based on the monthly plan and the inventory norms the monthly requirements
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of raw materials and consumables will be prepared by plant planning and is sent to central planning, Corporate purchase and to Raw material stores. Monthly requirement of raw materials is calculated from software and it is validated every six months.
Based on the monthly simulation plan for the whole of kottayam unit, each plant make its own simulation plan and indents required materials from raw materials stores. The simulation plan for 3 segments of 10 days each is prepared and micro planning is done based on that.
Since the plant sends work-in-process materials to other plants, a simulation plan is also prepared for work-in-process material production and is send to concerned departments of MRF units to which these in process materials are sent. In case of any revision revision in monthly plan, plan, the revised requirements and plan will will be sent to the concerned parties.
Production details report is sent to central planning on a daily basis for the previous day’s production. Plan Vs Production report is published every 10 days and also on a monthly basis.
3. QUALITY ASSURANCE DEPARTMENT
Quality is considered as the most effective tool to improve productivity, to achieve cost effectiveness, to improve profitability and market share and to remain competitive in the global market. In the business environment of today, quality impacts not only the products and services but also many other relevant entities such as process, systems, people and organisation.
A low level quality can be caused by the weakness either in the design of the product, or in its manufacture. It is therefore appropriate to distinguish between quality of design and quality of manufacture. Two products which have the same use but which are designed in different ways can
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be of different quality of design. Quality of design is evident in the specifications to which the product will be manufactured. A product may confirm in varying degrees to the specification. This varying degree of confirmation to the specification will lead to varying degree of quality of manufacture.
Functions of Quality Assurance Department
•
Quality assurance department’s primary aim is customer satisfaction. Hence its prime duty is to ensure that all customer complaint should be taken seriously and is to be communicated to all concerned. Problem solving tools are employed to ensure that the problem is solved and error proofing methods are adopted adopted to ensure that such such problems don’t occur occur again.
•
Improve the profitability of the company by reducing defects and waste generation. This is done by initiating projects for waste reduction and forming task forces for close follow up. Specific targets are fixed in each area for waste reduction and forming task forces for close follow up. Specific targets are fixed in each area for waste reduction and quality improvement and it is done in coordination with all other connected departments.
•
The main function of quality assurance department is process audit and final product inspection. This will include include monitorin monitoring g the inspection inspection status of incoming incoming materials materials,, in-proces in-processs materials materials,, process parameters and finished product inspection. Ensuring identification and traceability of all materials is also the function function of QA.
•
Educating workmen on Quality Quality Standards and the consequences of of not following quality norms is also done.
Audits on suppliers and outside godowns are conducted periodically to ensure the materials are of the required quality and also to ensure that they are stored in the proper manner.
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Whenever a finished product is returned to the factory due to any defect those products are inspected, the reasons found out and communicated to everybody concerned. It is then disposed in a suitable manner and recorded. Slow moving and non-moving items are tracked at regular intervals to avoid material getting deteriorated due to prolonged storage and to avoid producing material which is not needed by the market. Quality Policy of MRF
The quality policy of MRF is to maintain market leadership through continuous quality improvement. To achieve this goal, all the MRF plants and the corporate office shall pay particular attention to the following:
•
Product process improvement improvement by field or plant performance monitoring monitoring and prompt service to the customer
•
Upgradation of machinery to meet the increasing needs of the customer.
•
Continuous training training of all employees in order to acquire necessary skills and knowledge.
Structure of Quality Assurance Department ORGANISATION STUDY
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Manager Quality
Quality Assurance in Charge Plant
Quality Assurance in Charge Plant
Supervisor
Operators
Supervisor
Operators
Quality Assurance in Charge Plant III
Supervisor
Operators
Quality Assurance in Charge Plant
Supervisor
Operators
TECHNICAL DEPARTMENT
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Technical department at the corporate level carries out R&D activities and the results of those activities are transferred to the plants. Some of the activities carried out at corporate technical are new moulds, selection and evaluation of new and alternative sources, selection and evaluation of alternative materials, finished product testing and analysis, heat engineering and assisting plants in problem solving.
The results of research and developments are translated into practical applications at the plant level. At the same time, other routine functions like testing of incoming materials, process monitoring and product testing at each stage is also carried out.
Activities 1, New product development. 2, New compound development. 3, Designing and inspection of new moulds. 4, Selection & Evaluation of new alternative source. 5, Selection and evaluation of alternative. 6, Finishes product listing and analysing. 7, Arresting plants in problem solving.
Raw Material Testing
All raw materials are tested and released if they confirms to the specifications. When the material is received, raw material stores personnel arrange for collection of samples from the received material as per sampling plan. The sample is given to raw material testing lab along with sample transfer note/ visual inspection report.
Raw materials are tested as per BSP (Basic Standard Practices), standard test procedure and are compar compared ed with with the the specif specifica icatio tion n issued issued by corpo corporat ratee techni technical cal.. If the materi material al does does not confir confirm m to
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specification, more samples are tested and released if it is OK. If any of the re-tested samples are not OK, then the samples are sent to corporate lab and the material is accepted or rejected based on corporate advice. If the material is rejected, then raw material rejection note is prepared and the material is returned to the supplier by raw material stores.
In-Process Material Testing
In process materials are tested by technical as per the plan to check whether any deviation from the specification has happened either in the material used or in the process.
Finished Product Testing
Finished product testing is done both in the plant and at corporate technical departments. This is done to ensure that the product produced confirms to the required standards. In case of tyres, ply adhesion, mounted tyre dimension, and cut tyre analysis are done in the plant. For PCTR and flap, cured dimensions and weight are checked.
Process Control
Process control is effected by checks or tests conducted regularly. The data generated during tests and audits are used to control the process. Changes are made if required in the specifications to achieve process ability targets, targets, the changes are documented documented through plant plant changes letters.
If there is any problem, the process / product will be analyzed for variations in raw materials, or process conditions. conditions. Any deviation found will be corrected or alternative source of raw material will be tried. Process will be repeated to check whether it is OK.
New Product Introduction
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Whenever a new product is introduced, a TPOR (Technical Programme Opening Report) is received from corporate technical along with corporate specification, project schedule and new size production plan. Based on the TPOR, a micro plan will be prepared by Head- plant technical and it will be approved by the originator of TPOR. This is then given to the concerned technical in-charge who prepares the activity plan. Plant specification is generated based on the corporate specification.
Analysis of the finished products is done and necessary corrections if any are incorporated into the specification. The product is released for re-evaluation or for completion of the project schedule. The product is sent for in-plant testing, corporate testing and performance report is published. The performance during bulk evaluation is published. Then if it is satisfactory, the product is released for regular production in consultation with corporate technical, and is documented through a TA (Technical Authorization) or PLC (Plant Change Letter).
Control Of Non-Conforming Product
It is the responsibility of technical department to dispose of the non-conforming materials in suitable manner. Non conforming materials are tied with a red tag (non conforming material tag) which contains all the relevant details like the MRF code of the held material, quantity, reason for holding, date and shift of production, date and shift of holding etc.
Technical in-charge reviews the non-conformance and takes a decision on the method of disposal and this is recorded on the non conforming material tag. The disposal is then followed up by production.
Tool Change Whenever there is a tool change the concerned specification is given by plant technical department. In case of a new size tool, it has to be Okayed by technical before being put in production. Finished Product Re-Classification Re-Classification
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Finished products which don’t confirm to first quality norms are kept separately are jointly inspected by production, technical and quality assurance. Based on joint decision, the material is either sent as seconds, repaired or scrapped.
Structure of Technical department
Manager Plant Technical
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Technical in in Charge Plant I
Supervisor
Workmen
Technical In charge Plant II
Technical in Charge Plant III
Supervisor
Supervisor
Workmen
Workmen
Technical n Charge Plant
Supervisor
Workmen
PLANT PURCHASE DEPARTMENT
The items purchased by the plant can be categorized as follows:
a) Items which come under under the head capital capital expend expenditure iture..
b) Items which come under engineering engineering spares(non capital capital expenditure)
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c) Statio Stationer nery y and miscel miscellan laneou eouss items items (items (items which which don’t don’t come under under the previe preview w of raw materials)
d) Servic Services es (Repa (Repairi iring ng of of machin machinery ery))
Procedure followed for purchase
Any person who needs a material can make a purchase requision but it has to be authorized by the department head. This has to be routed through engineering store. In case of items involving capital expenditure, it should have capital authorization number. In case of engineering spares of non capital nature, this is not required. Based on the indent, necessary quotations are invited and purchase orders are released. The copy of purchase order is sent to the supplier, intender, accounts, stores, corporate office PEM and a f ile copy for plant purchase.
RAW MATERIAL STORES DEPARTMENT
Raw material stores will receive a copy of the raw material requirement for the month prepared and sent by plant planning. This is also sent to central planning and central purchase by plant planning. Based on the requirement, central purchase arranges for procurement of materials and issues a delivery schedule to the plant. Delivery schedule schedule is the schedule by which the supplier supplier will release the specified specified dates to the plant. plant. Raw materials, consumables, fuel etc are received at the factory gate in line with the delivery schedule and purchase orders. The documents are verified to ensure that the materials are from approved sources and the correct quantity as is delivered.
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Weighment of the load is done. Goods arrival entry is made and the load is re-directed to the unloading point through the security department. The unloading point is usually the raw material godown, but sometimes the materials are unloaded at the plants where it is consumed. In case of fuel, oil etc it is unloaded at the storage area. At the unloading point, visual inspection is carried out and then the materials are stored with proper identification tags showing the primary status of the material (hold/ pending for test).Each material has a specified storage place and it is placed in that storage area. Sample transfer / visual inspection report is prepared and samples are collected for testing as per the documented sampling plan. The sampled bag is identified and the sample is sent to technical department for testing .GRN (Goods Received Note) is prepared at this point. After testing the samples, technical department informs the test result through material release / rejection / hold note printed at the bottom portion of the transfer /visual inspection report. Based on the test result ,green color sicker captioned “OK” is affixed if the material is OK, Red color sticker captioned “REJECTED” is affixed if the material is not fit for use and ORANGE color sticker captioned “HOLD” is affixed if it needs further tests to arrive at a concrete decision. Materials are issued to production as per the indent raised by production in each plant .Stock inventory and stock back to the supplier and the cost recovered .Transferring of materials to other plants is also monitored.
SHIPPING (DESPATCH) DEPARTMENT
Finished goods will be received from inspection/ packing area size wise, batch wise or lot wise on the basis of production Transfer Note. Physical verification of goods is done at the time of receipt and receipt tags are put. Proper storage and identification of finished goods is the responsibility of shipping department. Finished goods will be stored size wise on pallets with transfer slips showing the size, quantity, date of receipt etc. Tractor rear tyres .truck tyres and such others will be stacked on floor. Stacking norms for finished goods, where ever specified will be followed. Shipping will publish Daily Dispatch Simulation Plan. And copies of it will be sent to plant planning, central planning and QAD. Daily Dispatch plan is prepared based on simulation plan, allocation
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plan and urgency as intimated by central planning /marketing, transportation time required, availability of truck, shelf life of the product etc. Trucks are checked before loading to ensure that damages will not occur to goods. Daily production Receipts and transfer are fed into computer and reports are generated. Daily details are transmitted to central planning /EDP/Marketing /EDP/Marketing and data are consolidated for report generation and monitoring .Dispatch report is published for every 10 day period .Non moving /slow moving items report is published monthly and distributed distributed to central planning ,plant planning ,QA ,plant ,plant head, marketing etc. Shipping coordinates with central planning to get allocation for none moving and slow moving items. Tread rubber /cushion which exceeds the shelf life of 3 months and damaged products /tyres packed with wrong tubes will be given to production. Statutory registers and returns as required are properly maintained and submitted. New defective tyres are brought for tyres for repairs from outside godowns and inspections by central exercise authorities are arranged .Statutory registers and returns as required are properly maintained and submitted.
ACCOUNTS DEPARTMENT
The Functions of accounts department at the plant level have been divided into
1, Financial account
2,Cost account 3, Wages and Salaries
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4, Sales tax
Internal source
share capital
Reserves and surplus
External source
Banks.
Application of funds
Fixed asset
Investment
Current asset.
Loans & Advance.
Financial Accounts
This branch deals with all types of cash payments and receipts. This will include payment for engine engineeri ering ng and raw materi materials als purcha purchase, se, petty petty cash cash paymen payments, ts, operat operation ion and recon reconcil ciliat iation ion of bank bank accounts ,payment to the government in the form of taxes and levies ,payment of PF ,deduction from salary and payment of loan outstanding and insurance premium of employees ,fright payments, payment in lieu of travel allowance ,medical re imbursement etc. Cash receipts in the case of scrap sales and any other cash receipt will also come under this branch of accounts. Cost Accounts
This branch deals with forecasting ,budgeting, analyzing and reporting the income and expenditure of the company .The budget for expenditure is prepared using standard costing principles and it is compared with the actual expenditure .Any variation from the budget is analyzed to find the exact reason and it is reported to the top management.
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STRUCTURE OF ACCOUNTS AND FINANCE DEPARTMENT
Plant Account Manager.
Manager Asst .Mgr Raw Plant ORGANISATION STUDY Materials Accounts
Asst. Mgr. Engineeri ng Stores
Officer Shipping
Officer Engineerin Page 63 g Purchase
Supervisors
Supervisors
Wages Officer
Costin g Officer
Supervisors
Auditin g
Supervisors
Sales tax & Excise
Supervisors
Materials Handling Workmen
Supervisors
Sales Tax
All matters related to sales tax are handled by this section. Monthly returns for sales tax are filed on behalf of sales depots. VAT (Value Added Tax) system has been introduced and all matters related to this are also looked after by this branch of accounts. “C” forms for purchases from outside the stare and “F” forms are issued for receipt of goods from depots.
ENGINEERING DEPARTMENT DEPARTMENT
Engineering department functions are divided into Mechanical, Electrical, Instrumentation, Civil & Environme Environmental ntal engineering. engineering. The main functions functions are new machinery machinery lay out preparation preparation ,erection ,erection and
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commissioning of new machinery ,preventive maintenance, breakdown maintenance, condition monitoring and over hauling of machinery and other related equipments.
Erection ,commissioning ,operation and maintenance of utility items like generator ,boilers, compressors, pumps, freezer lines and cooling towers and maintenance of material handling systems like lift, hoist and gantry are done by engineering. The maintenance of equipments at pump house and training centers are also done. MECHANICAL MAINTENANCE
Preventive maintenance schedule for the particular week is taken and the necessary materials ,tools, manpower and spares are arranged .The scheduled maintenance activities are carried out based on work instructions and experience. Based on the number and nature of breakdowns in each machine during the year, the preventive maintenance schedule is reviewed and a new schedule is prepared for the next year.
BREAKDOWN MAINTENANCE
The defective machinery is identified either by production or by engineering and a m aintenance request is generated and arranges for the tools, maintenance personnel and spare parts. The machine is then released for maintenance. The required maintenance jobs are carried out and the machine is thoroughly checked. If the machine is OK, then it is handed over to production. Otherwise necessary corrections are again done. Every month, down time analysis is done and permanent corrective actions are initiated in case of recurring failures. Mean time between failure and mean time to repair are the measures adopted to track the improvement.
INDUSTRIAL ENGINEERING.
Major Activities
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Conducting studies for fixing Standards and Crew Strength in all areas. Negotiating of disputes by participating.
Participating in discussions for setting labour disputes
Manpower requirement assessment
Planning o Factory Layout
Expansion Project Coordination
Preparation and publication of MIS Reports
Works related to long term agreement.
computation of production bonus
Resource planning – manpower, machinery and equipments
Long term agreement related works
Calculation of chairman’s award
Calculation of production bonus
Connectivity between factories. head office and others plants, maintenance of network connectivity in all areas of the plant, administration of local e-mail service, maintenance of computers, printers other accessories.
ERP Activities – Maintenance of leased line connectivity between factory and head office and other plants, maintenance of network connectivity in all areas of the plants, maintenance of network connectivity in all areas of the plant, administration of local e mail service ,maintenance of computers printers and other accessories. ERP SYSTEMS in MRF Ltd was replaced by SAP systems in 2009
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STRUCTURE OF INDUSTRIAL ENGINEERING DEPARTMENT Plant Industrial Engineering Manager
Assistant Manager
Industrial Engineer
Recourse Panning in Charge
SAFETY DEPARTMENT
Responsibility of this department is to ensure the working ambience to all the personnel within the factory and the premises. The safety officer through the mechanism of audits and subsequent reporting – Feedback, builds in the safety consciousness and the safety culture within the personnel.
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MRF has a well defined SAFETY AND HEALTH POLICY which is as follows.
“It is the policy of our company company that the SAFETY SAFETY AND HEALTH HEALTH of our employees employees shall be our FIRST priority”
“It is the responsibility of everyone in this organisation, regardless of the position he occupies, to ensure that everyone in the factory returns home to his beloved ones without any injury today and every day” “We shall observe this policy policy not only in letter but also also in spirit and offer “ACCIDENT FREE SAFE PRODUCTION” for the benefit of one and all.
Safety policy of MRF
It is the policy of the company that the safety and health of all employees shall be given the FIRST priority. It is the responsibility of everyone in the organisation, regardless of the position he occupies, to ensure that everyone in the factory returns home to his beloved ones without any injury today and every day. They shall observe this policy not only in letter but also in spirit and offer “ACCIDENT FREE SAFE PRODUCTION” for the benefit of one and all. Procedures and guidelines
Necessary procedures, rules and guide lines for the effective implementation of this policy, without prejudice to the statutory requirements, are formulated by Chief Safety officer and Plant Safety officer. They They will will also also rend render er nece necess ssar ary y advi advice ce and and assi assist stan ance ce to all all mana manage geme ment nt staf stafff in the the effe effect ctiv ivee implementation of these policy respective sections, plants departments and the unit as a whole. SECURITY DEPARTMENT
Industrial safety in the public and private sector can be defined as protection of men, materials, machines, buildings, classified information, and the company operations and to provide protective services
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against fire, theft, damage to the company assets and the installation. Protect the valuables of the company as well of the employees. The main functions of security department are:
Control over accessibility
Check against theft, pile rages
Control over the movement of personnel and materials at the gate
Checking in/out raw materials, empty vehicles, carrying finished goods, vehicles carrying scrap items etc.
Control and checks on the company hired taxes and security of bills.
Co-ordination of security duties with private security agencies and preparation of bills.
Control and check over the entry of contract works.
In case of an accident in the factory, it is the responsibility of the security department to provide the victim with first aid. The security department should also take them to the appropriate place by using the ambulance if necessary. The inflow and outflow of inventory, personnel are regulated and monitored by the security department.
Structure of Security Department
SENIOR SECURITY OFFICER
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Officer Security
Watchmen
Firemen
HUMAN RESOURCE DEPARTMENT
The Human Resource Department is known as the heart of an organisation. It performs a number of activities concerned with the employees of their organisation. It interacts with other departments to ensure effectiveness of the company.
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ORGANISATION ORGANISATION STRUCTURE OF HR DEPARTMENT
Plant Human Resource Manager
Deputy Manager – Human Resources
Officer of Human Resource.
Canteen Supervisor
Welfare Office& Family Welfare Co-ordinate
Time Officer
Training officer
The function of the Human Resource Department includes:
Any employee newly recruited will be exposed to the following areas.
•
Introduction about the company
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•
Evolution of the concept of quality and its relevance to the contemporary industrial production production
•
Safety
•
External competitive environment and organizational culture
•
Factory discipline
•
Basic process flow in the plant in which they are place.
The following are the various activities being undertaken in taken in HR Department
1. Recrui Recruitmen tmentt and Sele Selecti ction on of empl employe oyees es 2. Perf Perfor orma manc ncee Appr Apprai aisa sall 3. Welfare activates 4.
Training
5.
Industrial relation and labour management
6.
Canteen service
7. File management.
Other activities controlled by HR Department are
Medical insurance scheme
Family welfare canteen
Co-operative Society
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Recreation club
OFFICE TIME The office time is also come under the HR Department. The office time carries out the following function.
Attendance detail
Leave details
Wage calculation
Daily reports.
Working hours
First shift
: 7am-3pm
Second shift
:
3pm-11pm 3pm-11pm
Third shift
:
11pm-7am
General shift
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:
8am-4.30pm
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CHAPTER 4
SWOT ANALYSIS
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SWOT ANALYSIS
The SWOT Analysis have revealed the strength, weakness, opportunities, and threats of the company. It has been detailed below: below:
STRENGTH •
Unique Brand Name.
•
Good infrastructure.
•
Computerized system.
•
Locally available raw material.
•
Environment certification (ISO 14001)
•
Quality product (ISO 9000 certification)
•
Highly evolved Research Research and Development Development wing
•
Training to all the employees.
•
Aggressive marketing Policies.
•
Latest technology and concepts.
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•
Experienced work force.
•
Wide spread recognition.
•
Quality control.
•
Harmonious relations between workers.
•
Largest tyre manufacturers in India.
•
Strong financial support.
•
Good and efficient distribution network.
WEAKNESS •
•
Lack of speedy communication.
highly motivated Union problems.
•
High rate of absenteeism.
•
Marketing department is only at corporate office.
•
Lack of individual initiative.
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•
Less interaction between manufacturing and marketing department.
•
Lack of commitment.
OPPORTUNITIES
•
Modernization of tubeless tyres.
•
World class products.
•
Joint ventures or tie-up with foreign automobile companies.
•
More opportunities for diversification.
•
Global standards and competition.
•
Improvement in market share both in India and outside.
•
Availability of latest technology
THREATS •
Competitions.
•
Market Risks.
•
Cheap import from China.
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•
rupee depreciation resulting in lower export realization
•
Changing technology.
•
Entrance of new players.
•
Cost of raw materials.
•
Increasing transportation cost.
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CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUTION
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FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS
•
MRF ltd. Is the no. 1 largest tyre manufacturer in the country and the 12th largest in the world.
•
MRF exports its products to more than 75 countries worldwide.
•
MRF is the first Indian company to export tyre to the US.
•
The company is providing good working environment.
•
MRF is the first company in India that manufacture and market Nylon tyres, passenger tyres commercially.
•
Profit is comparatively low because of the rapid variations in the cost of the raw materials.
SUGGESTIONS
•
The management must take sufficient step to install a grievance settlement machinery with sufficient participation of workers
•
Improve employee relation.
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•
Open a show room at factory itself.
•
The company need to move and update itself according to new technologies in the market to maximize quality production.
•
The company should utilize railways to transport its materials which would reduce the overall logistics cost.
•
More attractive advertisements in Visual Media would help in Marketing
•
More investment has to be made in Research and Development.
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CONCLUSION
Madras R ubber ubber Factory mobilized itself as the market leader. The strong performance
of MRF is because of combined efforts of management and employees. MRF provides high quality and technologically superior products to its customers. The company has the provision to find out which tyre is manufactured by which worker. The effective management along with successful workers is very dedicated and is aware of new developments taking place in the industry. There is “no compromise on the quality policy” makes them King of Kings in tyre industry. If they implement the suggestion put forward, will help them to improve profit and helpful for the workers. So the company can attain global standard through continuous improvement in the quality products and service in order to maintain market leadership and can be the king in tyre industry industry for many years.
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BIBLIOGRAPHY
1. Kothari Kothari C R, Research Methodo Methodology logy,, Vishwa Prakasha Prakashan, n, New Age Internati International onal(P)Lt (P)Ltd d ,New Delhi, Second Edition
2. Dr. D D Sharma, Sharma, Marketi Marketing ng Research, Research, Sultan Sultan Chand Chand and and Son, Education Educational al Publishe Publishers, rs, New Delhi Delhi.. 3. L M Prasad, Prasad, Organisati Organisational onal Behavio Behavior, r, Sultan Sultan Chand and and Sons, Education Educational al Publishers Publishers,, New Delhi. Delhi.
Company Website; HYPERLINK "http://www.mrftyre.com" "http://www.mrftyre.com" www.mrftyre.com www.fadaweb.com/indiantyresindustry.htm
http://www.mrftyres.com/aboutus/awards.html
Company journals and magazines.
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