Christ University Institute of Management (CUIM) City Campus, Bangalore
Masters of Business Administration, 2012-14
Organization Structure Training (OST) Report On
Amalgamations Valeo Clutch limited -By Joe Arputhan MBAL -1221316
Acknowledgement I thank Amalgamations Valeo Clutch limited and it‘s Human Resource Department for providing this amazing opportunity on such a short notice. I am grateful to Mr. Alfred, General Manager (Human Resource) for his valuable feedback and guidance throughout the training period. I would also like to thank everyone in Valeo Clutch limited for their immense support during the whole tenure. I owe a huge debt of gratitude to Christ University Institute of Management for designing this training module, without which I could have never known the functioning fundamentals of all the departments in a large scale organisation. I would also like to thank Prof. C.K.T. Chandrasekhar, HOD Administration, for his in depth knowledge and ideas about conducting a successful OST. My special thanks to Prof Seema Chakraborthy, who has been my mentor throughout the training tenure and without his guidance and feedbacks this could have been an impossible task. Finally, this project would not have been possible without the whole hearted co-operation and support of my friends and family. They showed understanding and patience wherever needed.
Joe Arputhan, MBAL 1st year 1221316
The Amalgamations group is one of India's largest light engineering groups with interests in businesses that are predominantly in automobile components but also extend to diverse areas such as plantations, batteries, printing, book selling, pesticides and plantation products, engineering tools and paints. With a heritage of over 150 years of serving customers from farmers to tycoons the group comprises of 47 companies with manufacturing units spread across India and a workforce of over 15000 employees. Originally comprising of a few European owned and managed companies, the group is now wholly owned and managed by Indian promoters. The Amalgamations Valeo clutch private limited is a unit company of the Amalgamtions group of chennai Present in 28 countries, employing 68,000 people at 124 production sites, 21 Research centers, 40 Development centres and 12 distribution platforms.*, Valeo worldwide is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for the automotive industry, mainly for CO2 emissions reduction, Valeo ranks among the world's top automotive suppliers.
History of the Organisation: It all began in 1923 in Saint-Ouen, France, with the production of brake linings and clutch facings. Nearly a century later, Valeo is one of the world's leading suppliers of components, integrated systems and modules for the automotive industry, mainly for CO2 emissions reduction. This remarkable industrial success story can be summed up by 4 main periods.
1923-1950: Starting out: Eugène Buisson, the French representative for Ferodo brake linings, opened workshops in Saint-Ouen to manufacture, under license, his own brake linings and clutch facings. A few years later, he began manufacturing complete clutches. In 1932, the company was listed on the Paris Bourse. On the eve of World War II, the company owns almost all patents on clutches.
1950-1980: Integration of new activities: The company made a series of acquisitions, created new subsidiaries in Spain and Italy, built plants and became a key player in the modernization of automotive components. By acquiring Sofica and becoming a shareholder in Usines Chausson, the company was able to integrate a third core business: thermal systems.
The subsequent acquisition of SEV-Marchal enabled the company to incorporate electrical and then electronic activities. The electrical activity was later strengthened by the acquisition of Cibié-ParisRhône and Ducellier.
1980-2000: Focus on globalization: In 1980, the shareholders chose the name "Valeo" – "I'm fine" in Latin – to unite the different brands and teams under the same name. In 1987, the Group adopted a major international expansion strategy. With the acquisition of Neiman and its subsidiary, Paul Journée, Valeo entered the security systems business and was able to strengthen its wiper and lighting activities. By acquiring ITT Industries' electrical systems business, the company was able to assert its leadership position as leader in wipers and park-assist systems.
At the same time, the Group sold off its non-strategic activities (brake linings, ignition and horns) and adopted the "5 Axes methodology", with the aim of achieving customer satisfaction through Total Quality.
21st century: The era of technological innovation and emerging markets: Valeo focuses on the development of innovative technologies that satisfy market needs. The Group‘s strategy is based on two main vectors of growth: CO2emissions reduction, and Asia and emerging countries. Valeo offers solutions for reducing the consumption of internal combustion engines, as well as for hybrid and electric vehicles, and for lowering the energy consumption and weight of components. Valeo has a streamlined organization comprising four Business Groups (Powertrain Systems, Thermal Systems, Comfort and Driving Assistance Systems, and Visibility Systems) and the Valeo Service aftermarket activity.
Valeo-Business groups: Valeo has 4 Business Groups, comprising 16 Product Groups, supplying the original equipment market and the aftermarket. For original equipment segment, Valeo supplies all major automakers worldwide
For replacement parts and services, Valeo supplies the original equipment spares (OES) and independent aftermarket (IAM) through its dedicated Valeo Service organization.
The 4 Business Groups are: Powertrain Systems, Thermal Systems, Comfort and Driving Assistance Systems, and Visibility Systems.
Powertrain Systems: This Business Group develops innovative solutions to reduce fuel consumption and CO2 emissions, while maintaining driving pleasure. These solutions include a complete range of products for the electrification and hybridization of vehicles.
Thermal Systems: These systems ensure greater efficiency and autonomy, longer-lasting components, as well as greater comfort, whatever the outside temperature. The technologies developed by this Business Group contribute to optimizing cabin comfort and to reducing energy consumption. The Thermal Systems Business Group comprises four Product Groups: Climate Control, Powertrain Thermal Systems, Compressors, and Front-End Modules.
Comfort and Driving Assistance Systems: These systems improve safety and driving comfort by offering easy access and enhanced 360° visibility around the vehicle, while creating an ergonomic, intuitive relationship with one‘s environment. The Comfort and Driving Assistance Systems Business Group comprises four Product Groups: Driving Assistance, Interior Controls, Interior Electronics, and Access Mechanisms.
Visibility Systems: These systems offer solutions for all weather and driving conditions in order to see and be seen. The systems developed by this Business Group contribute to safety by improving visibility of the vehicle and the driver‘s visibility, while saving energy. The Visibility Systems Business Group comprises three Product Groups: Lighting Systems, Wiper Systems, and Wiper Motors.
Profile of the products manufactured in Chennai plants: Amalgamations-Valeo Clutch Private limited has three plants near Chennai.
Plant at Vallam
Plant at Madhavaram
R&D at Sholingnallur
The plant at Madhavaram does the manufacturing of Spare Parts and the Vallam plant does the Assembly. The Research and Development is located in Sholingnallur. The Power train Systems Business Group comprises five Product Groups: Electrical Systems, Transmission Systems, Engine Management Systems, Air Management Systems, and Hybrid and Electric Vehicle Systems.
Transmission systems:
The dual dry clutch, a key innovation representing a viable alternative to hydraulic automatic transmissions. With two clutches (one for even gears and one for odd gears), this system allows the driver to change gears with no interruption to torque and no jolting, just like an automatic transmission. Without a hydraulic circuit, it also improves efficiency, cutting consumption by 4-6%
Clutches with and without self-adjusting technology
Clutch discs with a new generation of multi-louver dampers offering effective protection from vibrations;
Environmentally friendly clutch facings with no heavy metals, manufactured using a waterbased process;
Release bearings with built-in automatic self-centering;
Hydraulic clutch actuators
Fig:1 Dual Dry Clutch
Electrical systems and hybrid and electrical systems:
In the field of micro-hybrid systems, Valeo is the only supplier to offer two stop-start systems, based either on the StARS starter-alternator (Starter Alternator Reversible System) or on a reinforced starter. The second-generation ―i-StARS‖ is externally different due to the integration of control electronics on the electrical machine, reducing the volume and facilitating installation;
Starters and alternators;
Electric motor drives;
Power electronics for hybrid and electric vehicles.
Engine Management systems and Air management systems:
Complete engine control systems for gasoline and VNG (vehicle natural gas) engines;
Engine control units for direct and indirect injection gasoline applications or those adapted to alternative energies (VNG, Flex Fuel);
Engine components: ignition coils, injectors, sensors and canister valves;
EGR (exhaust gas recirculation) and air intake modules.
Mission of the Organisation:
To deliver to our OEM and aftermarket customers around the globe.
Added value through innovative, total quality, cost effective solutions and services,
Responding to the automotive challenges of fuel economy, safety and comfort.
Objectives : 1. Total quality 2. Cost control 3. Advanced technology 4. Global presence.
Strategy : A strategy based on CO2 emissions reduction and growth in emerging markets Valeo‘s strategy focuses on reducing CO2 emissions in all market segments. Through innovation and accelerated development in emerging markets, the Group will ensure above-market organic growth in each region and actively participate in the consolidation of the industry. At the same time, strict control of costs and investments will enable Valeo to achieve best-in-class profitability.
Technological innovation The Group‘s strategy is to focus on CO2 reduction in all classes of vehicles. This includes not only products for the hybridization and electrification of vehicles but also for weight reduction and lower energy consumption as well as technologies that optimize fuel consumption and enable smarter driving. Valeo expects to double its sales for technologies linked to CO2 emissions reduction by 2013. Valeo‘s drive for growth covers not only these products. As demand for more fuel-efficient cars booms, as urbanization and ageing populations continue to be major demographic trends, and even as cars become smaller, there is another trend to be addressed: that for more differentiation, more customization, more ergonomy and more ease of use. Valeo‘s comfort and driving assistance systems fit into this category of product, and low-speed maneuvering in particular will be an important source of future growth.
Growth in emerging markets
In addition, Valeo will accelerate its presence in emerging markets, in particular in China and India. The Group will invest around two-thirds of of its capital expenditure in emerging markets to reinforce its historical positions, notably in China, India, Brazil, Thailand and Turkey, and progressively develop its presence in Russia.
Through this strategy, the Group anticipates higher than market growth in each region, to achieve 12 billion euros of sales in 2013 and 15 billion in 2020.
The Aftermarket:
It is seen as a crucial strategic challenge by the people at Valeo.With a potential market of one billion vehicles worldwide-a figure that is growing regularly every year- the aftermarket represents a major driver of Valeo‘s global growth. Valeo‘s original equipment business is aimed at a market of 75 million new vehicles per year, Valeo Service works for a market comprising all vehicles on the road, which represents one billion vehicles worldwide and is expanding by 3% to 4% every year. Out of a total aftermarket estimated at 250 billion euros ,the product lines at valeo represent nearly 20 billion euros.The valeo‘s four business groups are investing in the Aftermarket to achieve growth in this segment through greater customer satisfaction.
Purchasing strategy: Building up a best supplier base, helping the suppliers improve, integrating them into our product development, and involving them in our operations: these are the four key processes that enable us to reach our objectives: total quality, cost control, advanced technology, and global presence.
Supplier quality Products:
Zero incidents
Single-digit PPM Projects:
100% of initial samples right first time and on time Logistics:
Zero logistical incidents
100% order-fill rate
Competitive costs
Continuous cost reduction for materials and components.
At least one suggestion per supplier per month.
Advanced technology
100% of our designer suppliers integrated at phase 0 of our projects.
Development times cut in half.
Valeo Quality standards From initial evaluation to Continuous Quality Improvement, we select the best suppliers and set ourselves the objective of growing together. Our customers—car manufacturers—are constantly raising their quality requirements. Valeo and its suppliers must anticipate and satisfy these expectations in order to align themselves with the finest international standards.
Single-digit PPM
Resolution of warranty issues
Projects of perfect quality All achieved with maximum responsiveness and a positive attitude. In order to select the best suppliers and help them constantly improve their performance, Valeo relies on three quality-evaluation tools:
Selection process
Qualification system
Continuous improvement
Operating culture:
A culture based on operational excellence
Valeo‘s operating culture is based on achieving operational excellence, thanks to world-class quality levels, a set of values applied by all employees, and a strong commitment to social and environmental responsibility. Values
The Group has defined five key values to achieve operational excellence, which are applied by all employees:
Ethics
Transparency
Empowerment
Professionalism
Teamwork
The 5 Axes methodology
To ensure Customer Satisfaction in terms of cost, quality and delivery, Valeo has developed, and implements rigorously in all sites, its 5 Axes which are driven by continuous improvement and founded upon the principle of right first time. Total Quality is a state of mind at Valeo, involving all employees at all levels and at all times.
Fig: 2 the 5 Axes Methodology
Commercial strategy:
Geographical Presence: Present in 28 countries, the Group employs 68,000 people at 124 production sites, 21 Research centers, 40 Development centers and 12 distribution platforms.*The Group optimizes its industrial facilities on an ongoing basis in relation to customer demand, markets and labor costs.
Commercial organization Valeo develops, produces and sells original equipment and aftermarket products and systems for all car and truck manufacturers. The Group's commercial policy extends well beyond everyday commercial relations and involves building very close partnerships and accompagnying its customers in developing their markets throughout the world.
Sales and Business Development The Sales and Business Development Function comprises three networks:
National Directorates: which act as veritable ambassadors for Valeo in given geographical areas. Their role is to promote the Valeo brand in these regions, establish close relationships with the key customers in the regions and to resolve locally any legal or social problems, where necessary. There are ten National Directorates, based in China, Germany, India, Italy, Japan, North America, Poland, South America, South Korea and Spain;
Group Customer Directors: who are the Sales Directors responsible for major automaker customers. Each represents Valeo in dealings with a given manufacturer and coordinates relations with the customer on a Group-wide basis, for all Product Families;
The Sales and Business Development network: consisting of Sales Directors reporting to the Group's Product Families, defines the commercial strategy and is responsible for day-to-day customer relations.
International Affairs International Affairs consists of three networks:
National Directorates, which act as ambassadors for Valeo in given geographical areas. There are eight National Directorates, based in China, Germany, Italy, Japan/Korea, North America, Poland, South America and Spain. Their role is to promote the Valeo brand in these regions, establish close relationships with the key customers in the regions and resolve locally any legal or social problems, where necessary;
Group Customer Directors, who are the link between the Group and the major automaker customers. These eight Directors each represents Valeo in dealings with a given manufacturer and coordinate relations with the customer on a Group-wide basis, for all Product Families;
Sales and Business Development network, consisting of twelve Sales Directors, each one linked to a
different Product Family. This network defines the commercial strategy to be implemented and is responsible for day-to-day customer relations." Customer Events: To be closer to the carmaker customers and to emphasize the Group's innovations from the early beginning of a project on, Valeo organizes Technology Shows on customer sites, as well as events called "Ride & Drive".
These events give Valeo the opportunity to present its latest innovations by domain, and to customers the chance to test them "in real life" by driving demo cars especially equiped for this occasion. During those operations different contacts in the customer company come together on a private track, like managers from Platforms, R&D, Product Marketing and Purchasing. Relating to the business development with its clients, Valeo also participates in major Motor Shows.
An organization by Business Group focused on growth and profitability
Policies and Procedures Followed: Environment, Occupation, Health and safety policy:
Objectives: 1. Documenting , implementing and maintaining our systems to minimise the risk of employees, interested parties and its impact to the environment. 2. Implementing a Performance Measurement System for Conditional improvement of the educational , occupational, health and safety management. 3. Achieving and maintaining compliance to applicable legal and other requirements. 4. Preventing pollution through design , manufacture treatment and recycle of products, minimising wastes and environmental impact. 5. Managing site facilities minimising waste, energy, packing material consumption and optimising other natural resources. 6. Educating employees on the need for occupational health and safety conservationa of the environment. 7. Communication of EHS policy to all employees , customer , suppliers.
Total Quality Policy:
Committed to achieve Customer Satisfaction through Quality , innovation , delivery and price of our products.
1. To fully implement in depth our quality of Management System. 2. To meet the Customer requirements and Certification. 3. To promote Total Quality Culture through implementation of Valeo 5 core strategies (involvement of personnel , Valeo production system , constant innovation , supplier integration and total quality) 4. To setup the standards of all functions and reduce process visibility by continuous improvement variability. 5. To implement appropriate measures for achieving zero detects in all areas through QRDC approach in Safety , Production , Logistics , Supplier , Projects and Warranty through SAN , GEN, SHVGL, Attitude and Rigor.
Sustainable Development:
Valeo has been engaged for many years in a process of sustainable development, in line with the principles of the United Nations Global Compact which the Group signed in 2004. This process – covering environmental responsibility, corporate social responsibility and commitment to society – aims to respond to the legitimate human, environmental and economic concerns of Valeo‘s various stakeholders, including employees, customers, shareholders, suppliers, communities and public authorities. Valeo is committed to honoring its responsibilities in all of these areas while respecting national legislation and international treaties and agreements. To reaffirm its commitment, the Group has published a Sustainable Development Charter outlining 15 principles to be respected by all employees, as well as suppliers and subcontractors.
The 15 principles of Sustainable development :
Guarantee that our activities comply with all applicable legislation and international agreements.
Maintain the industrial excellence and profitable growth of all our activities in a manner that is compatible with sustainable development.
Ensure that our Code of Ethics is distributed and applied at all of the Group's sites and by our suppliers and subcontractors.
Deploy the ISO 14001 environmental management system and the OHSAS 18001 occupational health and safety management system at all of our sites.
Distribute Group directives that aim to improve risk management and make sure that they are understood and implemented by the sites.
Improve the environmental and safety performance of our processes and products at every stage of their life cycle: supply, manufacturing, distribution, transport, use and end of life.
Optimize the transportation of persons and products in order to reduce greenhouse gas emissions.
Limit the use of natural resources and encourage the use of renewable resources and energies. Eliminate substances that are hazardous for the environment and health from our products and processes. Protect the safety of people and property.
Ensure the diversity of our teams at every level.
Encourage flexibility and develop our employees' skills by proposing training programs that meet their needs.
Pursue an active and contractual labor relations policy.
Develop the local know-how, appeal and presence of Valeo by encouraging durable relationships with local partners.
Promote the implementation of sustainable growth policies by our suppliers and subcontractors.
The 5S procedures:
ELEMENT
PERFORMANCE CRITERIA
1. Sort needed from un-
1. Identify all items in the work area
needed
2. Distinguish between essential and non-essential items 3. Place any non-essential item in a appropriate place, not in the work area 4. Regularly check that only essential items are in the work area
2. Set the workplace in order
1. Identify the best location for each essential item 2. Place each essential item in its assigned location 3. After use immediately return each essential item to its assigned location 4. Regularly check that each essential item is in its assigned location
3. Shine the work area
1. Keep the work area clean and tidy at all times
2. Conduct regular housekeeping activities during shift 3. Ensure the work area is neat, clean and tidy at both beginning and end of shift 4. Standardise activities
1. Follow procedures 2. Follow checklists for activities where available 3. Keep the work area to specified standard
5. Sustain the 5S system
1. Clean up after completion of job and before commencing next job or end of shift 2. Identify situations where compliance to standards is unlikely and take actions specified in procedures 3. Inspect work area regularly for compliance to specified standard 4. Recommend improvements to lift the level of compliance .
The 5 Priorities methodology is applied around the world,by all Group employees, in order to deliver ―zero defects‖ to the customer. The 5 Priorities are:
Personnel Involvement: this implies recognizing skills,enhancing them through training and giving people the means to carry out their responsibilities. Employees are particularly encouraged making suggestions for improvement and participating actively in the work of autonomous teams;
The Valeo Production System (VPS): the VPS is designed to improve the productivity and quality of products and systems. It involves the following approaches: pull flow organization, flexible production resources, the elimination of all non-productive operations and stopping production at the first non-quality incident
Constant Innovation: to design innovative, easy-tomanufacture, high-quality and cost-effective products while reducing development time, Valeo has set up an organization based on project teams and the simultaneous Engineering of products and processes
Supplier Integration: this allows Valeo to benefit from suppliers‘ ability to innovate, to develop productivity plans
with suppliers and improve quality. Valeo sets up close and mutually beneficial relationships with a limited number of world-class suppliers and sustains these relationships in the long term;
Total Quality: in order to meet customer expectations in terms of product and service quality, Total Quality is required throughout the Group and from its suppliers.
Functions of Various departments and their Managers : Logistics Department:
Strategically managing the procurement, movement and storage of materials, production of parts and despatch of finished products(child parts) and the related information flows, into and through the organisation and its marketing channels to meet customer needs for goods and service and to achieve sustained profitability by cost-effective order fulfilment. It includes a complete process of planning, managing, controlling and coordination to make sure that the goods reach the right place, at the right time, for the right cost and in a right condition. 1. Ensuring all the requirements of the customers(door to door) are met on time in an efficient and safe manner. 2. To coordinate with third party logistics (3PLs). 3. To ensure that there is a safe and timely dispatch of child parts which makes up the clutch cover For Assembly which is to be done in the Vallam plant. 4. To create and maintain customer support. 5. To maintain coordination with vendors and transport carriers and suppliers. 6. To ensure that no fraud is committed. 7. To ensure timely supply and payment of goods and reduce inventories 8.To follow the kosu approach (to measure the resources required to manufacture a part) and standards like Visual Reorder and total productive maintenance so to cut product development lead times, stabilize new production lines quickly while avoiding start-up problems, and cut costs at every stage of the process.
The Manager organise the storage and distribution of goods. They plan and manage the movement of goods in a supply chain, liaising with many parties including suppliers of raw materials, manufacturers, retailers and consumers.
Key Result Areas and Key performance Areas : The KRA solely determines the performance appraisal and it is fixed by the HOD‘s of the various Departments.
Key Result areas:
1. Managing, planning and coordinating the work in the company‘s Logistics Department. 2. Ensuring efficient and cost effective transports, deliveries, mobilisation/demobilisation of equipment and materials 3. Managing and coordinating logistical movements regarding projects, site personnel and other employees. 4.
Managing the vehicle control as well as the records of drivers‘ duties at all times.
5.
Ensuring that all logistical requirements are met on time and within budget.
6. Ensuring that the Logistics Department operates in conformity with company standard guidelines for Quality Control, Health, Safety and Environmental awareness. 7. Ensuring supply and allocation of drivers and heavy equipment operators to ensure timely deliveries and collections. 8.
Coordination and constant communication with Stores, Purchasing, Workshops and Site Operations regarding scheduling of transports, and availability of equipment and materials in a timely manner
The Purchase Department: In order to give Valeo‘s strategy a truly competitive edge, the role of the Purchasing Department is to reduce costs by sourcing from only the most globally competitive suppliers, implementing extremely rigorous selection processes for new suppliers, applying the total quality and innovation approach to suppliers and sub-contractors, and establishing close partnerships with the most innovative and best performing suppliers. In the fourth quarter of 2010, the new Purchasing Department was rolled out across the Group. Six Commodity Purchasing Directors (Purchasing Family) were appointed to lead the cross-departmental purchasing teams spread out in each key area of the world. Each is responsible for defining the strategy for one of the six main Commodities and for managing all the Group‘s activities related to integrating its suppliers. The six commodities relate to:
1. Steel and conversion; 2. Plastics and conversion; 3. Non-ferrous metals and conversion; 4. Electro mechanics; 5. Electronics; 6. Indirect purchases.
Valeo has continued to deploy resources to help its suppliers improve their own quality processes. The Group‘s QRQC approach continues to be implemented to assist suppliers in achieving zero defects. In 2010, Valeo instituted a new strategy referred to as Supplier Quality Step Up in order to improve the quality of its suppliers. Valeo thus brought its expertise, covering key commodities, to 60 of its suppliers, who accounted for 35% of the Group‘s supplier incidents. A technical analysis of the gap existing between the supplier‘s technology and best practices in theautomotive industry was carried out when this program was launched. A quality improvement plan was written as a result and is reviewed periodically to ensure continuous progress. In particular, implementing this new strategy allowed supplierincidents to be reduced by 25% compared with 2009. Supplier Relationship Management (SRM) is an essential tool in the relationship between Valeo and its suppliers. Modules such as the Incident Management System, Product Quality Assurance (qualification of new components in projects) and the Supplier Scorecard (quality performance, cost
and delivery timeframe) can be accessed on a secure extranet. These enable Valeo and its suppliers to work closely together and share standardized processes, for example to share project schedules and to exchange and approve component qualification documents.
Key Result areas for the purchase Department : 1. Saving on material cost 2. Inventory turns 3. On time procurement 4. Material rejection scrap ratio 5.Vendor development
Production planning and control: All of the four basic phases of control of manufacture are easily identified in production planning and control. The plan for the processing of materials through the plant is established by the functions of process planning, loading, and scheduling. The function of dispatching puts the plan into effect; that is, operations are started in accordance with the plant. Actual performance is then compared to the planned performance, and, when required, corrective action is taken. In some instances re-planning is necessary to ensure the effective utilization of the manufacturing facilities and personnel. Let us examine more closely each of these functions.
Functions: 1. Loading 2. Schedule 3. Combining Functions 4. Dispatching 5.
Reporting or Follow – up
6. Corrective Actions 7. 7. Re-planning
The supply Quality Assurance is a major function of the production planning control. It involves two kinds of testing 1.Inbound testing and 2. Outbound testing Inbound Testing or inhouse testing involves the testing of raw materials before they are fed into the line.
Outbound Testing involves the testing of finished Products. KRA‗s: 1. Finalizing AOP (Annual Operating Plans) & cascading them in to monthly & daily production 2.
plans for each end product for domestic & Exports customers.
Capacity planning of various shops & Execution of production plans in accordance to customer requirements.
3.
Coordinating with marketing, purchase & manufacturing for fulfilling the product requirements on daily, weekly & monthly basis.
Quality Department:
Quality is a key demand from consumers and automakers.It is a prime concern for all Group employees on a daily basis: it is the cornerstone of Valeo‘s 5 Priorities methodology and an integral part of the Group‘s culture The role of the Quality network is to ensure that everyoneis aware of and understands their individual responsibilities.It also consists of evaluating problems and requirements in terms of training support, and of training, supporting and validating lessons to be retained and shared to avoid any recurrence. The Valeo Quality network operates as a decentralized network and involves each of the 5 Priorities: the Quality System Manager validates Internal Procedures, checks that they are applied properly, and updates them to ensure that they are in line with both internal and external quality standards;
the Project Quality Manager ensures that the Quality methodology is duly applied to projects and checks that it covers projects for their entire duration, in accordance with Valeo standards;
the Supplier Quality Manager manages the quality of components delivered, from the project phase right through the product‘s lifecycle, and assists supplier progress through the implementation of improvement plans;
the Production Quality Manager ensures that quality specific tools are properly implemented within the manufacturing process and coordinates the deployment of control plans as well as work instructions. They also act as the ―voice of the customer‖ for all quality incidents to ensure the customer‘s total satisfaction;
the Quality Managers build the Quality network, and develop its skills and abilities by instilling the QRQC spirit into the teams making up all the networks. With this in mind, Level 3 QRQC, which is a method of coaching in problem-solving tools, was implemented in 2010.
The Department of Production: The production department at Madhavaram takes care of producing and supplying of child parts for the manufacturing of clutch set .the clutch cover and the Disc Assembly together forms the clutch set. Some of the child parts manufactured are 1. Cover plate 2. Diaphragm 3. Pressure Plate 4. Fulcrum 5. Drive Stamp
The various processes involved are: 1. Cushion Disc hot forming (cushion disc-manufacture and heat treatment) 2. Diaphragm hot forming (blanc heat treatment) 3. Press shop (for production of blanc and drive plates) 4. SQA(regular heat treatment) 5. Short peening (for releasing internal stress) 6. Induction hot forming(for hardness increasing)
Key Result Areas (KRA)1.Achievement of Production Target 2.Cost Effective Production 3.Yield Improvement / Maintenance 4.Maintaining high level of Productivity 5.Maintenance of GMP 6.Effective and efficient Maintenance of Plant 7.Harmonious Industrial Relations 8.Maximum Capacity Utilization 9.Wastage Minimization.
The Maintenance Department: The maintenance Department is concerned with to ensure a safe workplace and to keep all the utilities on. Also maintenance departments are generally responsible for installing new equipment, designing, modifying and fabricating a wide variety of manufacturing, and process equipment. if something breaks down, they are tasked with getting production going again as safely, quickly and economically as possible. KRA ‗s :
1. Initiates, implements, and manages the plant maintenance program based on best practices in the 2. Industry, with an emphasis on planning/scheduling and preventive/predictive maintenance. 3. Monitors the use and inventories of spare parts, maintenance supplies, and equipment and initiates reordering when necessary. 4. Prepares reports, analyzes data, and makes recommendations for improving plant 5. Operations and solving maintenance-related problems. 6. Supervises plant maintenance personnel.
Research and Development:
Designing the automobile of tomorrow, creating technologies and products in line with the market while anticipating its expectations and driving the market through innovation: These are the fundamental principles of Valeo‘s Research & Development strategy. Valeo engineers seek to anticipate automakers‘ demand for solutions that offer real value-added for drivers: improved comfort, safety, performance and respect for the environment. The fundamental priority for Valeo R&D is reducing the fuel Consumption and continous improvement of all existing products (volume gains and energy improvement) Valeo‘s Business Groups are thus working in harmony with new system approaches, which can bring out innovations and ground-breaking technologies
Finance Department: The Finance Department analyzes, quantifies and manages risks arising on the Group‘s financial activities (mainly currency, interest rate, commodity, liquidity and counterparty risks). Along with the functional networks and the National Directorates, the Business Groups are responsible for identifying and assessing risks within their remit, and for ensuring compliance with local regulatory requirements. They are also responsible for ensuring that the guidelines and recommendations defined at Group level are properly applied throughout the operational entities.
KRA‗s : 6. Directs installation and maintenance of accounting, timekeeping, payroll, inventory, property and related procedures and controls 7. Designs, manages and monitors reporting systems to all departments and to aid management decision in achievement of stated objectives regarding revenue, profitability, and market share. 8. Prepares statements and reports of estimated future costs and revenue. 9. Directs the maintenance of ledgers, journals, accounts receivable, revenue depreciation, cost, property, operating expenses, insurance etc.
The Human resources Department: The Human Resources Department is centered on workplace relations, career development, training and skills managment and employee involvement; Human Resources is responsible for skills management (recruitment, compensation, internal mobility and team motivation), training and adherence to the Group‘s Code of Ethics. It pursues a strategy to support the Group‘s international development by devising a global policy that is deployed in accordance with the characteristics of local employment markets.
KRA‘s :
1. Recruitment/ Selection 2. Workforce Planning 3. Diversity management 4. Performance Management 5. Reward Management 6. Workplace Management 7. Industrial Relations 8. Safety And Health Workplace
The Project Engineers works in tandem with the R&D department and would carry out the design created by the R&D department. if the prototype is successful it can intimated to the production Department or else it has to be specified for correction action to R&D.
SWOT analysis of the organization:
For SWOT analysis, the following criterions are considered:
Markets
Markets
Competition
Facilities
Employees
Marketing
Research and Devlopement
Management and environmental Setting
STRENGTH
Weakness
Opportunity
A strength
Compared to
A huge
because the
its competitors
potential in
organisation is
the
Aftermarket
multinational
Aftermaket
estimated at
and reputed
sales are pretty 250 billion low
Competition
Threat
euros
Reputed
The pricing is
Faces stiff
leader in
high when
completion
passenger and
compared to
from
Trucks
its competitors
companies
Segment
like LUC and Cocomus in the Asian markets
Facilities
Less training
Motivational
measures and
programs and
high lead time
training
and
measures can
Transportation
be given;
costs.
integration of the manufacturing and assembly plant
Employees
3 shifts a day
Delay in
Lack of
1st shift: 6am
production
organisation
to 2pm
because of
among
2nd shift:2pm
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Organisational hierarchy : The Valeo plant at Madhavaram has a functional structure whose head is the Site General Manager. Since the environment is stable and there is no much of variety when it comes to products,the functional structure works well for Valeo. The functional units of human resources, Maintenance & Safety, Purchase , Logistics , finance , process and plant management act as specialised units and contain personnel with various but related skills grouped by similarities.
Fig 3 : Organisation Structure at Vallam Plant-Valeo
Factors influencing organisational structure : In general the factors that influence organisational structure are 1. Size 2. Span of control 3. Training 4. Mission Statement 5. Technology 6. Environment 7. Networks
Size - Number of personnel, outputs (customers, sales), resources (wealth), or capacity provide measures of an organization‘s size. But, organizations grow and the structure changes with increases in size. As organization‘s grow there is a greater need to regain the coordination that could be
accomplished informally in a small group, and there is a tendency for division of labor with more and more specialists and departments. To achieve greater coordination, layers of management may be added to create hierarchy. As hierarchy increases power becomes difficult to concentrate at the top and there can be a distribution of power to lower managers. Decentralization can occur as lower level managers assume decisionmaking, but to retain some degree of standard operational procedures, the organization increasing relies on written policies and procedures. This formalization of organizational rules helps to maintain order across the growing organization and ensures conformity and continuity in practices. Also, with growth organizations begin to divide the work into ordered units that perform specialized work. Increased specialization of work into departments is termed differentiation. The extent to which an organization is departmentalized, divisionalized, and hierarchically layered characterizes the organization‘s complexity. Increased organizational size has important implications for management: it can limit the flexibility of individual work, affect how much authority can be delegated, and lead to an emphasis on results rather than how the work is actually performed (because results are easier to monitor). Span of Control – ―How many employees can or should a manager oversee?‖ That is the issue of span of control. Span of control has interesting implications for work, how work is performed, and the organizational structure. A narrow span of control describes a low number of workers under a manager. The structure that is created is tall, or mechanistic. The tall pyramid structure is created by the hierarchical layering required to maintain a low manager-to-employee ratio. The tight supervision inherent in the mechanistic structure is characteristic of bureaucracy. Work is performed under tight controls, little variability of tasks is permitted, and there is high specialization or departmentalization. When a manager oversees a large number of employees, the high span of control produces a flat organization, called organic structure. The flat pyramid is characteristic of organizations with low hierarchy. Less hierarchy with a larger number of employees per manager means that workers have more autonomy or freedom to perform their tasks. Control is sacrificed for creativity. Training Proper training helps to encourage a healthy organizational structure. When employees are schooled in how the company operates, what the proper channels of communication are and how to work together, these tasks and the organizational structure remain intact. Reinforce the company's structural integrity by making sure that each employee takes part in regular corporate trainings designed to introduce new concepts within the framework of the organizational structure.
Mission Statement An organization should be designed to rally around the corporate mission statement. A mission statement is more than just a marketing device placed on the corporate pamphlets; it should summarize the beliefs of the company and how the company wants its customers and vendors to perceive it. Create a mission statement that the entire company can understand, and then encourage managers and executives to reinforce the mission statement each day. A company that is unified behind a single vision is better conditioned to maintain a strong organizational structure.
Technology A company's technology aids in work-flow design by facilitating communication and work procedures. Technology aiding in work procedures is called operational technology. Different types of industries, departments and tasks require different levels of operational technology to function. Technology that facilitates communication is called information technology or IT. Similar to operational technology, IT changes depending on the needs of the organization's design.
Environment The external setting in which the business functions has a deep impact upon many elements of the organizational design. Organizations function within two types of environments: the general environment and the specific environment. General environments consist of the organization's set of economic, legal, political, cultural and educational surroundings. An organization's specific environment comprises the company's market, industry standards and competition.
Networks Organizational design extends outward from the company to include a network of supportive business and corporate allies. Organizations that co-evolve with other firms often end up stronger because of the mutual support. Some organizations carefully manage their network of alliances, while others organically build support through contributions natural to the course of commerce. Some alliances produce business-boosting activities such as joint-ventures or co-branding.
Significant factors for success : Diversified customer base:
Sales of 10,868 millions in euros as of 2011 compared to 9,632 in 2010 Global footprint: Present in 28 countries, the Group employs 68,000 people at 124 production sites, 21 Research centers, 40 Development centers and 12 distribution platforms. Outstanding quality levels: The Quality dept at Valeo follows QRQC approach (Quick Response Quality Control):
QRQC for
safety, plants and suppliers. Any problem that arises is immediately identified and analyzed on the spot by the parties involved. A corrective action is defined and implemented within 24 hours.This approach is applied to all areas: Production, Quality, Projects, Purchasing,Logistics and Safety. Innovations meeting Automotive challenges: Since Valeo places a greater focus on Aftermarkets the four business groups strive for innovation in the Aftermarket. A recent success would be the success of the clutch conversion kit.this product enables a cost saving of 30% compared to the cost of replacing a dual mass flywheel and offers to 25% durability.the dual mass flywheel is a competitor‘s product
Product promotional measures: One particular reason for less or no product promotional activities is because the people here at Valeo believe the company is reputed ,renowned ,has its own range of products with continuous innovation ,already established customer base. Nevertheless Sales and Business development activities are active The top three strategies for the Sales and business development team is 1. Generating new orders 2. Concentrating efforts on growth in emerging particularly in the Asian Markets 3. Selling of products aimed at reducing CO2 emissions
Career planning and promotion policy of employees: Career planning is seen as a very systematic and comprehensive process of targeting career development and implementation of strategies, self assessment and analysis of opportunities and evaluate the results.
Career planning must link individual needs and aspirations with organizational needs and opportunities, evaluating, advising and informing its staff on career planning, individual development efforts with training and development programs. Most often this match is not done, the organizations paying a differential attention to its employees, planning career of the high performance individuals with greater opportunities for promotion and not taking into account the performance potential employees The HR dept considers 3 issues when it comes to career planning 1. organization members should be recognized and treated as individuals with needs, desires and unique skills; 2.
individuals are more motivated in an organization that matches their aspirations;
3. individuals may develop, change and discover new courses of action if they are shown exactly the opportunities or if they are encouraged and guided. The Models of Career planning: ―Chance and luck‖ model : This model is that employee, to get the desired position, is based only on luck. He must be persevering and always be in place at the right time. ―Organization knows best‖ model. The model is based on the fact that the employee is moved from one job to another according to the needs. This model is supported mainly by young employees, who are dependent on adults forall the views, and less than adults employees. ―self – oriented‖ model. This model provides importance to the individuals; the employees are establishing their own development during their career, while having assistance too.
Fig:3 Career planning process
Promotion policy of employees at Valeo : For employees at the levels of Manager, Deputy Manager and Engineer, the criterion would be knowledge, competence and experience. For employees at the levels of Laborers, housekeeping staffers the criterion would be experience and competence.
Training Measures: The following are the various training programs given for the employees: 1. ISO Training 2. Training on Managerial Skills 3. Supervisor Skills 4. Training on Hygienic conditions 5. Fire Fighting 6. Safety measures and training according to Annual Calendar
Systems followed for the purchase of materials:
1. Two-bin System 2. Kanban system 3. MTO 4. MRP Two-bin system: Two bin system is used for the material control. It is that technique of material control in which we have two bins, one is used for in use minimum stock and second bin is used for reserve stock or to keep the remaining quantity of material.It is a trigger based system. Kanban systems: It is a scheduling system that helps determine what to produce, when to produce it, and how much to produce. A Kanban system is a means to achieve Just-in-time (JIT) production. It works on the basis that each process on a production line pulls just the number and type of components the process requires, at just the right time. The mechanism used is a Kanban card. This is usually a physical card but other devices can be used. Two kinds of Kanban cards are mainly used: A Withdrawal Kanban - specifies the kind and quantity of product which a manufacturing process should withdraw from a preceding process. The withdrawal Kanban illustrated (right) shows that the preceding process which makes this part is forging, and the person carrying this Kanban from the subsequent process must go to position B-2 of the forging department to withdraw drive pinions. Each box of drive pinions contains 20 units and the shape of the box is `B'. This Kanban is the 4th of 8 issued. The item back number is an abbreviation of the item. A Production-ordering Kanban - specifies the kind and quantity of product which the preceding process must produce. The one illustrated (right) shows that the machining process SB-8 must produce the crankshaft for the car type SX50BC-150. The crankshaft produced should be placed at store F26-18. The production-ordering Kanban is often called an in-process Kanban or simply a production Kanban.
Make-To-Order Systems : Otherwise known as BTO (build-to-order systems) It is a Demand driven production approach where a product is scheduled and built in response to a confirmed order received for it from a final customer. The final customer refers to a known individual owner and excludes all orders by the original equipment manufacturer (OEM), national sales companies (NSC), dealers or point of sales, bulk orders or other intermediaries in the supply chain. BTO excludes the order amendment function,
whereby forecast orders in the pipeline are amended to customer requirements, as this is seen as another level of sophistication for a build to stock (BTS) system (also known as build to forecast (BTF)). Materials per Requirement: Valeo uses Materials per Requirement method for purchasing of materials. Material requirements planning (MRP) is a production planning and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, while it is possible to conduct MRP by hand as well. An MRP system is intended to simultaneously meet three objectives:
Ensure materials are available for production and products are available for delivery to customers.
Maintain the lowest possible material and product levels in store
Plan manufacturing activities, delivery schedules and purchasing activities.
The basic function of MRP system includes inventory control, bill of material processing and elementary scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing, purchasing and delivering activities. HRD Measures: HR performance measures are often used in order for an employer to keep track of the development that has been going on over all the employees in a certain department. This also includes the health and the staffing as well as the selection performance. From here, the employer will be able to determine the levels for the recognition and reward
there are four areas here that are targeted in order for the company to get results that are accurate and required. These are the development on the people area, the rewards and recognition, well being of the employees and the recruitment and the collection. These four will drive a company towards its goals when these aspects are well taken care of. HR Metrics: The most widely used HR metrics are typically concerned with employee attitudes, employee turnover, employee skill levels, as well as outsourcing costs, service center operations, the number HR transactions processed, staffing process, training programs utilization and effectiveness, and promotions. These measurements are employed by 25 to 75% of all business organizations.
Each metric contains 2 to 5 performance indicators. For instance, ―employee attitudes‖ metric includes the following indicators: Job Contentment (the percentage of employees satisfied with their job), and Manager Contentment (the percentage of employees satisfied with their manager). ―Employee turnover‖ metric generally include such indicators, as Cost per Hire (calculation of advertising, agency fees, employee referrals, relocation, recruiter pay and benefits costs and the number of hires), Turnover Cost (calculation of termination, new hire, vacancy and learning curve costs), Turnover Rate (rate of the employees leaving an organization), Time to Fill (the period from job requisition approval to new hire start date), Length of Employment (this indicator considers the job title, department, etc.). ―Recruiting‖ metric includes Vacant Period (number of overall days the positions were vacant), New Hires Performance Appraisal (average performance appraisal of new hires, compared to previous period), Manager Satisfaction (according to the survey of hiring managers, compared to previous period), Turnover Rates of New Hires (during a specified period), Financial Impact of Bad Hire (according to turnover cost and cost per hire). ―Retention‖ metric includes Overall Employee Turnover, especially in the key positions, Preventable Turnover (this indicator considers the reasons the employee left the organizations and what measures may be taken to prevent it), Diversity Turnover (turnover rate in professional, managerial, and technical positions), Financial Impact of Employee Turnover. ―Training and Development‖ metric includes Learning and Growth Opportunities (percentage of employees who are satisfied with the learning and growth opportunities in the organization), On-thejob learning Contentment (percentage of employees who are satisfied with on-the-job learning, project assignments for growth and development, and job rotations), Opportunities for New Hires (percentage of employees who report training opportunities among the top three reasons they accepted the job). Although most organizations use similar set of HR measurements, however, even common metrics don't always include standard components. For instance, a common ―cost per hire‖ metric may contain different expense categories, such as advertising, online services, background checks and recruiter costs. Recruiting and staffing metrics may also comprise various aspects. For instance, organizations usually measure ―college recruiting‖ by analyzing the source of organization newcomers and their progress at the workplace. HR measurements have significant implications for all areas of the business performance. For instance, employee attitudes and turnover metrics are reported to have key influence on decision making in the organization.
Welfare Measures taken at Valeo: 1. Canteen Facilities 2. Uniforms 3. Safety shoes 4. Education loan of about 20,000 for the labourers 5. Ayudha pooja gift 6. Medical loan 7. Transport facilties
Manpower planning: Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows: 1.
Analysing the current manpower inventory
2.
Making future manpower forecasts
3.
Developing employment programmes
4.
Design training programmes Important points to be noted: Understaffing loses the business economies of scale and specialization, orders, customers and profits. Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate because of modern legislation in respect of redundancy payments, consultation, minimum periods of notice, etc. Very importantly, overstaffing reduces the competitive efficiency of the business. Planning staff levels requires that an assessment of present and future needs of the organization be compared with present resources and future predicted resources. Appropriate steps then be planned to bring demand and supply into balance. Thus the first step is to take a 'satellite picture' of the existing workforce profile (numbers, skills, ages, flexibility, gender, experience, forecast capabilities, character, potential, etc. of
existing employees) and then to adjust this for 1, 3 and 10 years ahead by amendments for normal turnover, planned staff movements, retirements, etc, in line with the business plan for the corresponding time frames.
.Future staffing needs will derive from:
Sales and production forecasts
The effects of technological change on task needs
Variations in the efficiency, productivity, flexibility of labor as a result of training, work study, organizational change, new motivations, etc.
Changes in employment practices (e.g. use of subcontractors or agency staffs, hiving-off tasks, buying in, substitution, etc.)
Variations, which respond to new legislation, e.g. payroll taxes or their abolition, new health and safety requirements
Changes in Government policies (investment incentives, regional or trade grants, etc.)
Steps in Manpower Planning Analysing the current manpower inventory- Before a manager makes forecast of future manpower, the current manpower status has to be analysed. For this the following things have to be notedType of organization Number of departments Number and quantity of such departments Employees in these work units Once these factors are registered by a manager, he goes for the future forecasting.
Making future manpower forecasts- Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units. The Manpower forecasting techniques commonly employed by the organizations are as follows:
Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends), indexation (using base year as basis), and statistical analysis (central tendency measure). Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division. Work Force Analysis: Whenever production and time period has to be analysed, due allowances have to be made for getting net manpower requirements. Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis. Developing employment programmes- Once the current inventory is compared with future forecasts, the employment programmes can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans. Design training programmes- These will be based upon extent of diversification, expansion plans, development programmes, etc. Training programmes depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.
Performance appraisal system At Valeo: The performance appraisal system in Valeo is based on key result activities (KRA), which is being fixed by the HOD of the concerned Departments. The Performance appraisal system in valeo is open. An open appraisal system would be in such a way that the employee work would be rated both by appraise and the head of the Department and will be asked to rate for out of five and the average would be considered for the appraisal.
Financial highlights of the organisation : Total amount of employees : 58,000 , total presence : 27 countries , 109 production sites , 38 development centres , 20 research centres , 10 distribution centres , 5.6% of sales dedicated to R&D. Sales by Business Groups: Powertrain systems: 28 %
Thermal systems: 30% Comfort and driving Assistance systems: 17 % Visibility systems: 24 % Others: 1% Sales by region: South America : 8 % North America : 13 % Asia and others : 19 % The product portfolios concentration lies on Cars, Trucks, tractors and 3-wheelers segments. Valeo clutch private limited reported a growth rate of 14% for the year 2011-2012 as against 9% for the previous fiscal year, while the entire Automotive industry reported a growth of 11 %. Major proportions coming from Maruti and Tata. The Passenger car Segment constitutes about 47 % of sales while the Tractors and trucks constitute about 44% of sales while the remaining 9 % coming from 3-wheeler segment. Sales in 2010 : 257 Crores. Sales in 2011: 293 Crores. From 2010 to 2012 the business turnover saw a very good rise from 40 Million Euros to 160 Million Euros.
Future plans for growth of the Organisation: 1. Integration :
A fully completed integrated plant capable of producing the entire clutch set is coming in Oragadam near Chennai.
2. Rebuild team :
Strengthen the entire team by giving inhouse training.
3. Cost control :
Cost cutting in in-house by concentrating on process quality efficiency.
4. Quality improvement to Global standards :
Enhancing the design facilites and manufacturing facilties.
5. Eyeing for New Businesses :
Eyeing for New businesses with OEM manufactures.
Views of Managers at various levels and Non-managerial staff : A sample employee feedback survey has been taken with the Asst Manager industrial relations, Asst Manager , production quality And Asst Manager ,production planning and control to understand the average concerns and the views of the employees
Some important observations and inferences: All the three agreed and are satisfied when it comes to having a voice in major decisions and in-house training and the environment and the treatment of employees . 2 of 3 people said the employee training program can be very much improved. A company picnic and stress busting activities which can be sports ,a party is not at encouraged.
All the 5 people agreed to have an improvement in Education Assistance and Bereavement pay. 3 of 5 employees said the Operator work culture has to be improved and 2 of 5 employees said the 5S procedures need to be effectively practised. The best about working for the company is that the company is an MNC and the All the five employees believe that Valeo will thrive and has very good future prospects.
Advantages of the Organisation Structure : The functional structure at Valeo helps the members of each group to become more specialized and productive and creates opportunities for them to continuously learn and improve through their interactions with other group members. Second, since the members of each functional group are brought together and linked by their common skills, education and training, it is easier for them to supervise one another and control the activities and behavior of all of the members of the group. Third, the consistent interaction and collaboration among group members ultimately leads to a team orientation that makes the group more effective in tackling and executing projects. Finally, the functional structure at Valeo facilitates segregation of company assets and resources into the areas that are most important for the company‘s success and thus makes it easier for senior management to identify, manage and control resource deployment during a time when the company is growing rapidly and adding new resources quickly.
Drawbacks of the Organisation structure: 1. Operators work culture 2. ineffective in-house training 3. Transportation costs , freight costs due to the Assembly and child parts manufacturing plant present at two different places having a distance of 35 kilometres between them. 4. Occasional communication problems between the various functional groups. 5. Sometimes it is difficult for senior management to identify and measure the contribution that each employee and functional group is making to the necessary activities of the company and the pursuit of the strategic goals and objectives set by the company leadership. 6. Collaboration and communication issues also one of the main reasons for union problems and this is certainly a distraction for the top management from concentrating on high-level issues.
Recommendations to overcome the drawbacks : 1. The new integrated plant which will soon come in Oragadam has both child parts and assembly manufacturing facilities. This will help in reducing the transporation and fright costs and also could help in delivering the products as per scheduled. 2. The top-level management is aleady in action to rebuild the team to give the operators and labourers good effective in-house training. 3. Company picnics and parties have to be encouraged which will lead to a greater understanding and less communication problems among different groups. 4. The operator work culture have to be studied and efforts have to be made to make them more organised. 5. 5S procedures of Sorting , Setting the Workplace , Shining the Work area Standardising and Sustaining have to given more importance and Subsequent training have to be given for the employees so that they understand the benefits of working in organised manner. 6. Since Chennai is hot most of the times, the labourers and operators find solace in coming and getting refreshed in the Air-conditioned reception hall. Small refresh rooms can be given to the employees 7. And because of the heat the employees suffer from bad-odour emanating from their bodies and this definitely affect the moods of the employees which in turn affects the work progress. Deodorant sprays can also given to them so these small changes can help in making the employees work effectively and in an organised manner.
Customers of Valeo Clutch private limited : Car segment : Tata motors , Hyndai , Maruti and Ford Tractors segment : TAFE and Mahidra Trucks:
Ashok Leyland , Tata motors , Mahindra
3-Wheeler segment : Manhindra & Mahindra and Greaves.
