subham internship

of 104 /104
PRODUCTION PLANNING AND CONTROL IN THE AUTO-ELECTRICAL INDUSTRY A SUMMER INTERNSHIP REPORT Submitted by SUBHAM CHAUHAN Registration No: 11504778 In partial fulfillment of Summer Internship for the award of the degree of MASTER OF BUSINESS ADMINISTRATION (HONS) School of Business LOVELY PROFESSIONAL UNIVERSITY Phagwara, Punjab July, 2016

Author: subham-chauhan

Post on 16-Feb-2017




10 download

Embed Size (px)





    Submitted by


    Registration No: 11504778

    In partial fulfillment of Summer Internship for the award of the degree of


    School of Business


    July, 2016

  • 2 | P a g e


    I, Subham Chauhan, hereby declare that this internship project report entitled

    Production planning and control has been completed based on actual study carried out

    by me during my 45 days internship program at Lucas TVS Limited, Rudrapur.

    I am presenting an authentic report of my work to School Of Business at Lovely

    Professional University, Phagwara carried out at Lucas TVS Limited, Rudrapur for the

    partial fulfilment of the requirement of the Master of Business Administration degree

    programme of Lovely Professional University, Phagwara

    This Study based report is original and information, data and fact furnished there in are

    actual based on study carried out by me.


    Subham Chauhan


    Date- 31-07-2016

  • 3 | P a g e


    The satisfaction and euphoria that accompany the successful completion of any task

    would be incomplete without the mention of the people made it possible and whose

    guidance and encouragement.

    The project is the part & parcel of M.B.A. Degree. Its my great privilege to be

    associated with Lucas TVS Limited - leaders in Automotive Filters and Auto-

    Electrical Equipments. The kind of expression of Lucas TVS Limited. Global &

    professional attitude is what, I desired before joining. I would like to take this

    opportunity to thank all the people who helped in the completion my industrial training

    & in the completion of this project.

    I acknowledge my deepest thanks to Mr. D. D. Satyawali (Human Resource Head)

    at Lucas TVS Limited, Rudrapur for all his care & encouraging words & giving

    suggestions at the crucial stages of this project.

    I deliberate my profound sense of gratitude of Mr. Sunit Kumar Chauhan

    (Production Head), who have rendered constant guidance, advice and help as & when,

    needed to complete this project work successfully.

    I am thankful to Mrs. Neeru Sidana (Assistant Professor, School of Business) for her

    exertions and persistent assistance during my internship at Lucas TVS.

    I am deeply indebted to my dear parents, friends whose blessings and inspirations have

    brought me up to this stage of my career.

    Subham Chauhan

  • 4 | P a g e


    This report is mainly focused on production planning and control towards optimizing

    the resources to enhance the productivity and effective labour utilisation and to

    improve the quality for better customer satisfaction. In my summer training I have

    targeted Alternator (SIA114) main assembly line in Lucas TVS Limited. Normally in

    this internship important motive is to give information to the plant head of the

    company and production manager. After giving information to the line in charge then

    we ask some question for production planning and controlling purpose like what the

    production losses and the quality problems in the assembly of alternator and from

    where they tried to get the solutions and up to what extend they got their problem

    troubleshooting in failure of production planning and corrective and preventive action

    for the quality issues. Collection of data from the quality gate (Final Dispatch) and

    pre-dispatch inspection used in this report is primary and secondary. Primary data of

    this project is to explore awareness among the operators and supervisors about the data

    of production losses and quality problems to discuss certain best practices towards

    enhancing the productivity and effective labour utilization (ELU). Arising out of the

    productivity loss and secondary objective of this project is, to aware the operators and

    supervisor about the product quality towards customer satisfaction.

    As per the study and feedback from the operators, they are not much aware about the

    productivity losses and the customer dissatisfaction about the quality and delivery. But

    after giving information to the operators and line in-charge they said it is very useful

    for them and said whenever they get some problem regarding the productivity and the

    quality or any loss in production they will definitely minimize the 4M (Man, Machine,

    Material & Method) losses and also many of the lines are facing the problems related

    with the production and quality losses so there is large potential of the customer

    dissatisfaction for Lucas TVS Limited.

    As every other study, this study also has certain limitations. Some of the information

    taken is secondary so the information taken can be wrong. The operators or supervisors

    while providing the information may be bias.

  • 5 | P a g e



    To study the Need and Management of Supply Chain Management of the

    organization and the potential benefits of doing so.

    To identify the strategic, tactical, and operations issues in supply chain


    To define the term inventory and list the major reasons for holding inventories and

    list the main requirements for effective inventory management.

    To study the production planning and controlling process of Lucas TVS and the

    techniques by which the former can enhance its productivity.


    To gain real world experience of production and operations within the organization.

    To enhance the skills and gain experience of being a true professional.

    To understand the day to day functioning of a department within the organization.

    To deal with various problems of customer and their enquiry.

    To apply the various theoretical concepts in practical way within the organization.

  • 6 | P a g e



    1 Profile Study of Organization 13-19

    Industry Analysis 14

    Preliminary Understanding of the industry 15-16

    Nature of demand and supply 16-19

    2 History of Company 20-26

    Origin 21-24

    Expansion 24-25

    Global Expansion 25-26

    3 Introduction of the Company 27-42

    About 28-30

    Mission and Vision 30-31

    Infrastructure 32

    Life and Work Culture 33-35

    Specialized Products Lucas TVS Offers 36-40

    Customers of Lucas TVS 41-42

    4 Organization Structure 43-48

    Organization Hierarchy Under Plant 44

    Organization Hierarchy Under Production 45

    Awards and Recognitions 46

  • 7 | P a g e

    Quality Policy 47-48

    5 Learning From the Internship 49-67

    Supply Chain Management 50-52

    Production Planning 53-55

    Production Scheduling 55-57

    Production Monitoring 57-59

    Quality Control 60-61

    Pre-Dispatch Inspection 61-65

    Inventory management 65-67

    6 SWOT Analysis 68-74

    Competitors Analysis 71-73

    Conclusion 73-74

    7 Customer Satisfaction Towards Lucas TVS



    Introduction 76

    Need of the Study 76

    Objective of the Study 76-77

    Review of the literature 77-78

    Research Methodology 79-80

    8 Data Analysis and Interpretation 81-94

    9 Findings and Recommendations 95-97

    10 Conclusions 98-99

  • 8 | P a g e

    11 References 100-101

    12 Questionnaire 102-104



    Table 3.1 Customers of Lucas TVS 42

    Table 4.1 Awards and Recognitions 46

    Table 5.1 Suppliers of Lucas TVS 52

    Table 5.2 Cell log Sheet 54

    Table 5.3 Day-Wise Breakdown 55

    Table 5.4 Shift Breakdown 56

    Table 5.5 Production Monitoring 63

    Table 5.6 4Ms Reason 63

    Table 5.7 4Ms Breakdown 64

    Table 5.8 Kaizen Result Layout 65

    Table 8.1 Variables Validity 82

    Table 8.2 Order Validity 82

    Table 8.3 Order Quantity Validity 83

    Table 8.4 Order Delivery Validity 84

    Table 8.5 Order Fulfilment Validity 85

    Table 8.6 Package Rating Validity 86

    Table 8.7 Defected Items Per Lot Validity 87

  • 9 | P a g e

    Table 8.8 Problems in AEC Validity 88

    Table 8.9 Problems in EFIP Validity 89

    Table 8.10 Component Rating Validity 90

    Table 8.11 KMOs Test Significance 91

    Table 8.12 Communalities Extraction 92

    Table 8.13 Variance Explanation 92-93

    Table 8.14 Component Matrix 93

    Table 8.15 Rotated Component Matrix 93



    Fig 1.1 Engine Electrical Components 14

    Fig 2.1 Customers Welcome in Lucas TVS 23

    Fig 3.1 The Founder of Lucas TVS 28

    Fig 3.2 Certifications 29

    Fig 3.3 Plant Outlook 33

    Fig 3.4 Plant Interior Layout 33

    Fig 3.5 Health & Safety Policy 34

    Fig 3.6 Energy Policy 34

    Fig 3.7 Norms and Ethics 35

    Fig 3.8 Alternator 37

    Fig 3.9 Location of Alternator in Engine 37

    Fig 3.10 Starter Motor 38

  • 10 | P a g e

    Fig 3.11 Location of Starter Motor in Engine 38

    Fig 3.12 Wiper Motor 39

    Fig 3.13 Location of Wiper Motor in Car 39

    Fig 3.14 Types of Filters 39

    Fig 3.15 Air Filter 39

    Fig 3.16 Various types of Oil Filters 40

    Fig 5.1 Label of Master Sample (OK) 56

    Fig 5.2 Label of Master Sample (Not OK) 56

    Fig 5.3 Finished Goods Inventory of Alternators 59

    Fig 5.4 Production Line 59

    Fig 5.5 Packaging Department 62

    Fig 5.6 Consignment to Ware House 62

    Fig 5.7 Tube-Offset Checking Before Kaizen 65

    Fig 5.8 Tube-Offset Checking After Kaizen 65

    Fig 5.9 FIFO Clock in Inventory 66

    Fig 5.10 Raw Material Inventory 66



    Graph 8.1 Order Validity 83

    Graph 8.2 Order Quantity Validity 84

    Graph 8.3 Order Delivery Validity 85

    Graph 8.4 Order Fulfilment Validity 86

  • 11 | P a g e

    Graph 8.5 Package Rating Validity 87

    Graph 8.6 Defected Items Per Lot Validity 88

    Graph 8.7 Problems in AEC Validity 89

    Graph 8.8 Problems in EFIP Validity 90

    Graph 8.9 Component Rating Validity 91



    Flowchart 3.1 Product Range 36

    Flowchart 4.1 Organization Structure in Plant 44

    Flowchart 4.2 Organization Structure in Production 45

    Flowchart 5.1 Supply Chain Management 51

    Flowchart 5.2 Function in PPC 53

    Flowchart 5.3 Assembly Line 57


    EEC Engine Electric Parts

    AAC Automotive Aftermarket Companies

    OEM Original Equipment Manufacture

    ECP Electronic Control Parts

  • 12 | P a g e

    AEC Auto-Electrical Components

    EFIP Engine Fuel Injection Parts

    CTW/CTC Consignment to Ware House/Centre

    F/G Finished Goods

    R/M Raw Material

    WIP Work In Progress

    SCM Supply Chain Management

    SRE Spring Return Extend

    DE Di-Polar Extend

    PPC Production Planning and Control

    R & D Research And Development

    CNG Compressed Natural Gas

    PADI Padi Plant of Lucas TVS in Chennai

    CHKN Chakan Plant of Lucas TVS in Pune

    UT Sidcul Plant of Lucas TVS in Uttarakhand

    MMLN Maraimalainagar Plant of Lucas TVS in Chennai

  • 13 | P a g e



  • 14 | P a g e


    Lucas TVS Limited is into the business of Auto-Electrical components and Filter. This

    is the part of automotive industry which comes under the AAC (Automotive

    Aftermarket Component). Auto-Electrical are electrically operated systems which are

    used in road Vehicles, originated from the need to control engines. There are some

    electrical pieces which are used to control the functions of an engine and known as

    Engine Electrical Components (EEC). The Electrical components controls is used in

    various automotive applications and the acronym EEC stands for " Engine Electrical

    Components", took on the more general meaning and as result specific EEC's are

    produced. Now, EEC's are modular. A modern car may have up to 30 EECs and a

    commercial vehicle up to 15. A filter is a porous device for removing impurities or solid

    particles from a liquid or gas passed through it. Lucas-TVS is the market leader in India

    for Auto Electrical equipment and has 50 years of experience in design and

    manufacturing these products. Our product range includes Starter Motors, Alternators,

    and Wiping systems, Ignition Systems, Fan Motors, Small Motors and Automotive

    Filters. We are the principal supplier of these products to India's OEM's in the

    automotive sector.


    Fig 1.1 Engine Electrical Components

    Source: Internet

  • 15 | P a g e


    Auto-Electrical components provider is relatively a very old business domain it comes

    under automotive industry. The exponential growth of the automotive industry has led

    to the growth of AEC provider. The industry mainly comprises of vendors who provide

    Auto-Electrical components and Filters providers who develops the EECs which could

    be sold to any automobile manufacturing company.

    Lucas TVS limited provides both Auto-Electrical components and Filters to its clients.

    In Indian market there arent any such companies that provide both Auto-Electrical

    components and Filters to its customers hence it could be categorized as a monopoly.

    But there some large number of vendors who provide different types of Auto-Electrical

    components at a very small scale but they could never be categorized as a competitor

    to Lucas TVS limited because of their scale of operation is very less mostly confined

    to its locality.

    In the automotive industry most of the automobile manufacturing company have

    contracted with Auto-Electrical components provider. These type of providers are

    considered as automotive aftermarket suppliers and known as the secondary market of

    the automotive industry, these type of suppliers are perturbed with the distribution,

    manufacturing, remanufacturing, installation and retailing of all vehicle parts, ECPs,

    EECs and various accessories, even after the sale of that particular automobile

    assembled with the former items, by the original equipment manufacturer (OEM) to the

    customer. The parts and accessories for the sale may be or may not be manufactured by

    the Latter. Hence, such types of companies are working in B2B as well as B2C lane.

    There was a report submitted by the executives of the Administration of International

    Trade in the Department of Commerce, "There should be two categories of AAC i.e.

    accessories and replaceable parts. Accessories are parts made for comfort, performance,

    convenience, safety, or customization, and are designed for add-on after the sale of that

    motor vehicle from OEM, while the Latter are the parts either built or remanufactured

    to replace OE parts as they could damage.

  • 16 | P a g e

    New analysis from Frost & Sullivan, Strategic Analysis of the Indian Automotive

    Aftermarket finds that total manufacturer-level parts revenue in India will grow by a

    CAGR of 12.4 percent (2014-2021) to reach $16.5 billion by 2021. Demand for routine

    maintenance parts such as motor oil, wiper blades and brake pads will increase at least

    10 times faster across India than in North America and Europe.


    There is a Chinese Saying, Whenever the wind changes its blow, some people prefers

    wall while others build the windmills. And if you are engaged industry like (AAC)

    automotive aftermarket sector, where you can feel a constant breeze of innovation, you

    will have to develop an intuition for boundaries and opportunities, or in other words

    set up your windmill when the moment is right. The online retail market for the

    automotive aftermarket parts industry and accessories continues to emerge as a

    tremendous growth opportunity for the aftermarket parts industry. While estimated

    sales volumes of the online parts industry vary, assessments range from $2 billion to $4

    billion annually. In its March 2014 report, Digital Disruption: e-Tailing in the

    Automotive Aftermarket, AASA reported that aftermarket e-tailing has grown

    dramatically, with an estimated 60 percent of growth occurring in the past four years.

    Because of that, Booz & Company estimated that by 2018, e-tailing market size could

    reach 7.3 percent of market penetration. Aftermarket suppliers must have an effective

    presence online in the purchase process to capitalize on the opportunities in DIY and


    Over the last several years, the automotive aftermarket has adapted to and profited from

    the overall trends in the automotive sector. Like the previous years, 2014 will again

    mark a peak in the production of cars and the corresponding supplier industry. The high

    demand for spare parts is connected to the old age of vehicles in the US (ca. 11 years).

    Also, strong growth in emerging markets provides the automotive industry with a

    significant amount of upward potential.


  • 17 | P a g e

    From the aftermarket industrys point of view, the continuity of this development

    depends on the companies ability to further adapt to the upcoming automotive

    aftermarket trends. The main driver behind these trends is technological change

    1.3.1 Equalization of service levels in emerging markets

    In the past, a service level of between 90 and 95 percent was the benchmark in the

    automotive aftermarket. Today partly as a consequence of higher requirements in the

    digital age a service level of 95 to 99 percent is the new standard in developed

    markets. In emerging markets, like China or India, most of the time, the service level

    does not climb higher than 80 percent. Increasing this value is the avowed goal of spare

    parts management in the coming years. The most important challenge regarding this

    matter is bridging the infrastructure gap in emerging markets. Even though ERP

    systems are now widely available, the potential of these systems is limited. This fact

    will promote further trends regarding inventory optimization strategies, in order to

    achieve higher service levels.

    1.3.2 E-commerce

    E-commerce is a business model which has thrust itself into various business sectors.

    Today, the transaction of relationships and sales processes between customers and

    providers via the internet is the absolute standard in B2C business. This trend has now

    affected spare parts management as well. In the US, the revenue in the online area of

    spare parts vendors is estimated to amount to more than 5 billion dollars. In this specific

    area, e-commerce shows a double-digit rate of increase something the traditional

    brick-and-mortar businesses can only dream of. But this shift comes with a price,

    because the expectations of online customers are very high.

    (BONUS: See our Special Report on "E-Commerce Reverse Logistics Framework

    Strategy for The Automotive Aftermarket Industry" on the Automotive

    Aftermarket Supplier's Association Website.)

    Today, online mail-order advertises the concept of same-day-delivery, which implies

    the arrival of goods only a few short hours after the order was made. In order to meet

    these promises, a service level of 99 percent should be a standard. However, high stock

  • 18 | P a g e

    levels cause high storage costs and bind capital which could be used in more sensible

    ways. Companies should monitor both their service and stock levels and try to keep the

    latter as low as possible. In this context, the balance of stock levels between the web

    shop and the stationary retailers will play an important role in the future. The

    coordination of these two poles, in terms of a multi-channel strategy, is one big

    challenge the automotive aftermarket will face when implementing an e-commerce

    business model.

    1.3.3 3D printing

    Aside from the demands of rigorous E-commerce delivery times, 3D printing also

    represents a new trend in spare parts management. With 3D printing, companies found

    a way to shift the production of spare parts from a central production facility to local,

    previously non-productive subsidiaries. If a certain spare part is currently out of stock,

    it can quickly be made available by printing it on-site. The most important thing about

    this process is to have detailed specifications of the required objects. Because of its

    complexity and data sensitivity, the procurement of this information is a massive

    roadblock on the way to adopting this technology. While this currently prevents

    widespread usage, the first companies, like Ford, are already moving in this direction.

    One ongoing development of automotive aftermarket trends is suppliers are increasing

    their ship-direct activity. They are shipping parts directly to the dealer, or they may ship

    to a primary distribution center or field DC, bypassing the national distribution center.

    This approach benefits the shipper during a surge in demand, because the inventory is

    available throughout the network, so the supplier can quickly distribute it where it is


    Another supply chain trend in the automotive aftermarket is same-day delivery.

    Traditionally, dealers place their orders late in the afternoon on the day before delivery.

    But today, suppliers place high-velocity parts in various select locations, allowing them

    to ship to dealers in multiple daily deliveries. Dealerships can then provide much faster

    service to their customersrepairs that once took two or three days, for example, can

    now be completed within 24 hours. This strategy is prevalent in premium auto brands,

    but is spreading to more mainline brands as well.

  • 19 | P a g e

    Establishing high-velocity distribution centers represents a third auto aftermarket trend.

    High-velocity DCs ship original equipment manufacturer (OEM) parts every day to

    most or all of the automaker's dealerships. Some smaller auto brands ship less

    frequently, typically delivering service parts two or three times weekly to the dealer.

    Using high-velocity centerseither their own facilities, or ones operated by third

    partiesallows companies that once delivered two or three times weekly to serve

    customers five times per week. This approach could raise the level of inventory on

    hand, but if companies strategically focus on turns and inventory placement, they may

    not have to increase the amount of inventory in the systemthey can just place it closer

    to customers.

    The Indian automotive component aftermarket industry is pegged at Rs 28,000 crore

    and projected to touch Rs 37,000 crore by 2014-15. On the service side, the industry is

    estimated at Rs 10,000 crore and projected to grow to Rs 13,000 crore by 2014-15. It is

    such opportunities that are making big corporate houses like the Tatas and Reliance

    strategise to grab a share of the pie. While the Tata Sons-promoted Tata AutoComp

    Systems recently started offering a dozen-odd spare parts in the market a under a new

    brand called Autocomp, Reliance Industries is stepping up its Autozone business,

    its maiden attempt in the auto retail business.

  • 20 | P a g e



  • 21 | P a g e

    2.1 ORIGIN

    Lucas was established in 1872, the same year that the petrol engine was first patented.

    The first Mercedes 'horseless carriage' was still 14 years away and the Ford Model T

    wouldn't appear for a further 27 years. The business that Joseph Lucas founded in

    Birmingham, still the global HQ of Lucas today, represents the consistency and

    durability of Lucas products and has made Lucas one of the most successful automotive

    brands in history. An official patent was obtained in 1880 for the "King of the Road"

    bicycle lamp. In 1882, Joseph formed a private partnership with his son, Harry, trading

    under the title of Joseph Lucas & Son. The "King of the Road" Lion became a trademark

    in 1884 and remained a major feature of Lucas advertising for the next 80 years.

    Business expanded dramatically in the bicycle boom of the time. A new factory was

    built which later developed into the iconic Great King Street premises for the major and

    successful Lucas Electrical business in Birmingham. By 1897 a public company,

    Joseph Lucas Ltd, was formed with Joseph as Chairman. The company had now

    achieved a leading position in its market and was perfectly positioned to move into the

    infant automotive parts and accessories market.

    Joseph Lucas died in 1902 to be succeeded by his son, Harry, as Chairman. Lucas was

    perfectly positioned to take advantage of the expanding motor vehicle market which

    was stimulated by a Parliamentary Act in 1903, which raised the speed limit above

    walking pace, making the use of cars more attractive. The range extended to include

    cycle, motorcycle and car accessories including oil, acetylene, and electric lamps. Great

    King Street was expanded to meet increased demand.

    By 1960 there were 57,000 employees and expansion across Europe was gaining

    momentum. This included brake manufacturing in France and Germany, diesel

    partnerships in France and Spain plus a significant development of the aftermarket

    network. Lucas Service was by now a global enterprise. Lucas exported to over 130

    markets with around 4,000 authorised outlets. Lucas began the 1970s as the 54th largest

    company in the UK. The group was renamed as Lucas Industries in 1974 and a new

    Lucas corporate identity, including the Lucas diagonal, was introduced in order to meet

    changed national and international trading conditions. This resulted in the loss of the

  • 22 | P a g e

    individual brands of Lucas (lion), Girling and CAV which had gained world-wide


    Lucas TVS was established in 1962 as Joint Venture between Lucas Plc. UK and TVS

    Group, India. Lucas started operations in India from 1930 as Lucas Indian Service for

    providing warranty and aftersales service to many of the imported vehicles which

    carried Lucas parts. In the year 2001 Lucas TVS became a wholly owned company of

    TVS Group, as Lucas the parent company ceased to exist worldwide. While this might

    have created a technological challenge, Lucas TVS recognised this as an opportunity

    and exploited successfully; today 75% of revenues are from products engineered and

    developed locally by Lucas TVS. Lucas TVS is currently supplying to over 90% of

    automotive manufacturers in India and also exporting to North America and Europe.

    Initially with Starters, Dynamos and Distributor products, Lucas TVS, over the years,

    commenced providing complete system solutions in Auto Electricals, specialized

    motors for Air Compressors, Stop - Start systems, Engine Cooling modules, Ignition

    products, Diesel Fuel Injection systems etc. Lucas TVS develops and integrates their

    products in the vehicles and equipment, from the design stage onwards and carries out

    application engineering, development, manufacturing and service. The company

    developed innovative products, manufacturing systems and processes, which had

    brought growth in business and this could result in Lucas TVS being one of the few

    companies in the World to be awarded the Deming Application Prize and the Deming

    Grand Prize, by Union of Japanese Scientists & Engineers and setting benchmarks in

    the industry. Lucas TVS relies on investing in both people and infrastructure. Lucas

    TVS has established R&D and Product Proving and Reliability testing facilities, which

    have been recognised by the Government of India Dept. of Science & Technology.

    Lucas TVS products find applications in Two/Three Wheelers, Passenger Cars,

    Commercial Vehicles, and Tractors & Stationery Engines. Through export partners,

    Lucas TVS products are also integrated into some of the top global brands like Audi,

    Mercedes-Benz, BMW, Porsche, Rolls Royce, etc.

    While Starters and Alternators form the backbone of products, Lucas TVS established

    new benchmarks, focusing on higher efficiency at lighter weight and costs, being the

    present focus of automotive industry e.g. the new SGM25 starter for 1.2L gasoline

  • 23 | P a g e

    vehicles, high efficiency alternators (around 78% at lower speeds) to cater to the

    increased power requirements of gadgets and gizmos used in the vehicles, 150A Bus

    Alternator for the new luxury buses to run the air conditioners, on-board entertainment

    and electronics and 180A bus alternators for battery less option. This contributes to the

    Govt. of India Make in India challenge.

    Lucas TVS has developed Stop-Start Systems, Integral Starter Generators, Emission

    Control products like Urea Pumps and Brushless Motor Technologies, to take care of

    the growing need of environmental strategies of India.

    Fig 2.1 Customers red carpet welcome in the industry

    Source: Internet

    Lucas TVS has identified the need in the consumer industry, with synergy developed

    by Lucas TVS over the years and is working with some of the leading consumer product

    manufacturers in India to provide energy saving solutions using Brushless Motors and

    Integrated Controls to meet the strict Energy Star Requirements of their products e.g.

    motors in refrigerators, air conditioners, air handling as well as basic high efficiency

    home fans, pumping solutions, etc.

  • 24 | P a g e

    Based on the capabilities and commitment to support the society, Lucas TVS has been

    selected by the Government of India to partner with the prestigious Indian Institute of

    Technology Madras in the next generation rural electrification pilot projects from the

    infant stage itself. Looking into the future, Lucas TVS is able to fulfil the vision of

    being a company that will be deeply involved in the field of auto electricals and

    mechatronics as well as a significant player in consumer goods industry recognized for

    quality, technology and energy savings worldwide.


    Since inception, Lucas-TVS has been focusing on meeting the needs of its customers

    through a range of quality products. The company has been regularly coming up with

    its new products for its OEM customers. This has contributed a lot to its success in the

    domestic market, despite growing competition from multinationals. In order to meet the

    mounting demand in developing countries like India for fuel-efficient vehicles which

    are light in weight, with lower CO2 emissions, experts in Lucas-TVS continue

    introducing new generation products with advanced technology. The company is

    planning to expand its product portfolio by catering to CNG vehicles as well and is

    working on developing CNG kits that offer complete solutions to customers.

    Development of new products at the company is driven by its R&D team of highly

    qualified engineers with years of experience and expertise in the field. Among some of

    the new product developments, gear reduction starters have been well received in the

    market, with the company planning to increase production capacity for the same in the

    coming years. Lucas-TVS has developed a range of internal fan alternators with and

    without vacuum pump for the passenger car, UV and CV segments. Amongst the new

    technologies introduced by the company is the stop-start system while those under

    development include the regenbraking and other electrical accessories such as electric

    vacuum pump.

    New Delhi: Auto component maker Lucas-TVS will invest up to Rs. 400 crore by next

    two-three years in order to swell capability and product growth. It is also planning to

    establish new constructing units in Indonesia and Thailand. Arvind Balaji, Lucas-TVS

    Vice- President, said, We will invest up to Rs. 400 crore over the next two-three years

  • 25 | P a g e

    in R&D, manufacturing and capacity building. Lucas-TVS already has seven operable

    plants, comprising one in Iran, is also thinking over setting up new plants in Indonesia

    and Thailand. Mr. Balaji told the company had commenced production in the Iran plant

    through a joint venture with an investment of Rs 16 crore in which it holds the majority

    stake. To spread out its existence, the company would launch its products in Germany

    by next two years, besides anticipating inorganic growth chances. N. Ravichandran,

    company President (Operations), Lucas-TVS is looking out for domestic and

    international acquisitions.

    However, Mr. Ravichandran declined to give details of the companys acquisition plans

    in future. On the domestic front, Lucas-TVS is about to frame-up a plant in Singur to

    supply parts to Tata Motors for its Rs. 1 lakh car.

    We have acquired land in Singur for setting up a plant and will supply starters and

    alternators to Tata Motors Rs. 1 lakh small car, Mr. Ravichandran added. The

    company that had revenue of $250 million in the last financial was looking to double

    up the proceeds in the next four years.


    While new product innovations and overall quality policy have contributed to the

    companys sustained leadership in the domestic market, the current slowdown in the

    automotive industry which has seen vehicle volumes plummeting to new lows has given

    Lucas-TVS an opportunity to focus more on the aftermarket segment and also expand

    its customer base in export markets. Says Executive Director, Lucas-TVS Pvt. Ltd.:

    Currently, our main focus is on the domestic aftermarket and exports where we see a

    lot of potential for growth. We are aiming to increase our exports three-fold in the next

    few years. In both the domestic and export markets, we remain committed to delivering

    quality products through constant innovations and achieving high levels of customer

    satisfaction, backed by excellent service.

    Today Lucas-TVS exports half-a-million compressor motors annually to WABCOs

    facility in Germany, with excellent PPM levels. WABCO supplies suspension parts

    fitted with Lucas-Lucas TVSs to leading car manufacturers in Germany, including

  • 26 | P a g e

    Mercedes, BMW and Audi. The company also supplies wiper motors to Commercial

    Vehicle Group (USA), who supply the wiper system to truck OEMs in the North

    American market. In the off-road segment, it serves all-terrain vehicle manufacturers

    such as Artic cat and Polaris, among others.

    In the domestic market, Lucas-TVS has a market share of nearly 45 per cent in the OEM

    segment for products such as alternators, stop-start systems, brushless motors and wiper

    motors. The company works with almost all leading OEMs in the country such as Tata

    Motors, M&M, Daimler, Volvo, Ashok Leyland, VECV, MAN, Suzuki, Honda,

    Hyundai, Renault and Cummins.

    Lucas-TVS also caters to the huge two-wheeler market in the country. Nearly 70 per

    cent of the two-wheelers come with an automatic start option which provides huge

    opportunity for growth. The company supplies to leading two-wheeler makers in India

    and is keen to enter the promising Indonesian market as well. It also supplies to tractor

    manufacturers in the country, making it a truly full-range supplier in the automotive


    Lucas-TVS has been committed to its customers by following them geographically,

    leading to better logistics efficiency. The company currently has seven manufacturing

    units across the country two each in Chennai and Puducherry and one each in Rewari

    (Haryana), Chakan (Pune) and Uttarkand thus having its presence in the major vehicle

    manufacturing hubs in India. It has a sales and service network of around 800 dealers

    and 2,000 sales outlets, one of the largest in the country.

    The company clocked a turnover of Rs. 1,650 crores in FY13, of which Rs. 150 crores

    came from exports, Rs. 200 crores from the domestic aftermarket and the rest from the

    domestic OEM market. Nearly one half of sales is accounted for by the passenger car

    and utility vehicle segments, with CVs and tractors contributing 20 per cent each and

    two-wheelers the balance 10 per cent.

    At Lucas-TVS, quality is not just conformance to drawings or specifications but

    optimum customer satisfaction. The company has bagged a number of awards,

    including the prestigious Deming Grand Prize and the Export Excellence Award, in

    addition to several quality circle awards presented by its esteemed customers.

  • 27 | P a g e



  • 28 | P a g e

    3.1 ABOUT

    TVS Group is an Indian diversified industrial conglomerate with its principal

    headquarters located in Madurai and presence across the Globe. Almost all holdings of

    the group are private. The largest and most visible subsidiary is Lucas TVSs, the third-

    largest two-wheeler manufacturers in India. TVS Group, with group revenue of more

    than US$6 billion, is an automotive conglomerate company, specialized in

    manufacturing of two-wheeler, three-wheeler, auto-electricals components, high tensile

    fasteners, die casting products, dealership business, brakes, wheels, tyres, axles, seating

    systems, fuel injection components, electronic and electrical components and many


    The founder

    Fig 3.1 Trichur Vangram Sundaram Iyengar


    The TVS Group traces its origins to a rural transport service, founded in 1911 in Tamil

    Nadu, India. Today, this renowned business conglomerate remains faithful to its core

    ideals of trust, values, service and ethics. The TVS Group is Indias leading supplier of

    automotive components and one of the countrys most respected business groups with

    a combined turnover of more than over $ 6.5 Billion, the TVS Group employs a total

    workforce of close to over 39,000 employees. Charting a steady growth path of

    expansion and diversification, it currently comprises around over 50 companies. These

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

    component manufacturing to automotive dealerships, finance and electronics.

    Uniting these multiple businesses is a common ethos of quality, customer

    service and social responsibility.

  • 29 | P a g e

    3.1.1 Lucas TVS Limited

    Lucas TVS was established in 1962 as a joint venture between Lucas UK and T V

    Sundaram Iyengar & Sons (TVS), India to manufacture Automotive Electrical Systems.

    Lucas TVS, a wholly owned Indian company from 2001 onwards, is the Leader in Auto

    Electricals in India, with over 50 years experience in design, manufacturing and supply

    of products to OEMs in India and abroad. Lucas TVS is certified for compliance of

    their Quality management system to ISO/TS16949 and the organizations management

    system to ISO 50001, ISO 14001 and BS OHSAS 18001:2007.

    Fig 3.2 Certifications (Source:

  • 30 | P a g e

    The company today has 7 Auto Electrical plants across the country and Lucas TVS is

    the only AEC that has a Class-100 Clean Room facility to ensure the quality of the EECs

    and ECPs. Lucas TVS has established itself as a market leader with an experience of

    over a decade.

    Stellar has more than 1,00,000 satisfied customers and more than 300 OEM Customers

    across 150+ countries including USA, UK, Germany, Spain, Italy, France, Australia,

    U.A.E, Japan. They have reinforced their faith in Lucas TVS offerings. Lucas TVS has

    a widespread partner network around the globe, which ensures comprehensive pre-sales

    and post-sales support to its customers. Lucas TVS is also providing E-Tailing Services

    to its customers.

    The brand Lucas TVS denotes Success, Perfection and Trust. It transcends

    international borders and only Company in Indian Sub-continent having CLASS-100

    Clean Room

    Extensive Research & Development, Use of Proprietary Tools

    Presence in PADI-Chennai, Maraimalainagar, Nettapakkam, Thiruvander koli,

    SIDCUL-Rudrapur, Rewari, CHAKAN-Pune

    3.2 Mission and Vision

    We are committed to being a highly profitable, socially responsible, and leading

    manufacturer of high value for money, environmentally friendly, lifetime personal

    transportation products under the TVS brand, for customers predominantly in Asian

    markets and to provide fulfilment and prosperity for employees, dealers and suppliers.

    Vision Statement

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

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

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

  • 31 | P a g e

    The Industry Leader

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

    among the top five two-wheeler manufacturers in Asia.

    Global overview

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

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

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

    the total turnover.

    At the cutting edge

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

    benchmarking against international leaders.

    Committed to Total Quality

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

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

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

    The Human Factor

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

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

    through systematic training and planning career growth to develop employees talents

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

    maximum self-actualisation of every employee is achieved. Lucas TVS will support and

    encourage the process of self-renewal in all its employees and nurture their sense of self-


    Responsible Corporate Citizen

    Lucas TVS firmly believes in the integration of Safety, Health and Environmental

    aspects with all business activities and ensure protection of employees and environment

    including development of surrounding communities. Lucas TVS strives for long-term

    relationships of mutual trust and interdependence with its customers, employees, dealers

    and suppliers.

  • 32 | P a g e


    Since, 1962 Lucas TVS has been pioneer in developing its infrastructure in order to

    benefit its clients. To match world standards Stellar has installed & commissioned

    Indias first CLASS 100 Clean Room in all of its Ayton Electrical plant, its a controlled

    recommended environment for all Read/write Head assembly transplants. For efficient

    operations Lucas TVS maintains a strong inventory of more than 15000 child parts &

    2500 EEC parts forming a wide range comprising of various makes, models &

    capacities. Lucas TVS keeps on upgrading its inventory on a regular basis and also has

    necessary infrastructure for repair capabilities OEM products.

    At Lucas TVS, all of their EECs and EFIPs tools are indigenously developed &

    supported by their strong R&D wing thus providing an edge over vendors engaged in

    un-organized automotive industry. All of the tools used in Lucas TVS are backed-up by

    constant research and upgrades.

    Lucas TVS understands that apart from the technical capabilities it is equally important

    to make the service window available in customer's location. At present Lucas TVS has

    offered its services in 16 Strategic Locations (Ahmedabad, Bangalore, Chandigarh,

    Chennai, Delhi, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida, Pune and Vashi). Lucas

    TVS also offer its services by allowing its customers to send media through courier.

    The major capabilities of Stellar Data Recovery can be summarized as

    Service location

    Class-100 Clean Room


    Safety Policies

    Repair Equipment

    Distribution Process

    Poka-Yoke Involvement

  • 33 | P a g e

    Fig 3.3 Plant Outlook

    Source: Lucas TVS

    Fig 3.4 Plant interior layout

    Source: Lucas TVS

    3.4 Work and Life Culture

    In Lucas TVS Limited, Human Resource policies facilitate each individual to perform

    towards own and Company's growth and success

    Work Culture: Lucas TVS has always endeavoured to create a work-culture which is

    open, positive and rewarding; where there are exciting growth opportunities for every

    deserving Employee of Lucas TVS Family. Everyone is encouraged to learn new skills

    on the job as well as through formal training programs. In Lucas TVS Recovery success

    is not confined not only in monetary profits but also covering quality of products,

    excellence of operations, growth, customer goodwill and leadership in business. Such a

    success not only brings in a feeling of belongingness but also gives self-satisfaction.

    Employee Motivation: Lucas TVS has invested heavily in progressive HR practices.

    The company makes it a point to organize get together and Motivational events such as

    Outbound Trip. These are an integral part of work culture in Lucas TVS. Also the

    company does provide Infrastructure Support for conducive work environment.

    Health: Employees and their dependents are covered under company paid health and

    accident insurance schemes. These schemes also provide tie-ups with more than 200

    hospitals across the country, thus ensuring quicker accessibility, discounts and easy-pay

    option plans with guaranteed admission.

  • 34 | P a g e

    Trainings: Several Training Programs are being conducted in Lucas TVS to ensure

    better work performance and overall Personality Development. Structured workshops

    are conducted once in a while,

    Time Management

    Communicating Effectively

    Team Management

    Customer Orientation

    Project Management

    Emotional Quotient

    Autonomy & Empowerment: Lucas TVS encourage people to work with autonomy,

    to challenge old ideas, to develop themselves & their Job, to question old ways, thus

    move beyond their job description. Lucas TVS provides its employees with an

    atmosphere where they can develop themselves & others to move towards jobs that

    requires greater involvement. At the same time each individual is allowed to assume

    responsibility of their personal growth.

    Fig 3.5 Health and Safety Policy

    Source: Lucas TVS

    Fig 3.6 Energy Policy

    Source: Lucas TVS

  • 35 | P a g e

    Team Work: Individual technical skills and competence are essential but people also

    need to learn to work as a team in-groups. Lucas TVS firmly believes that the primary

    job of a leader is to facilitate rather than control. The team that produces the best result

    is the one where the Leader actively supports its members in their performance. Lucas

    TVS encourages teamwork between the employees in the organization. Hence, great

    emphasis is given to the various Team Building Programs and the employees are

    exposed to learn these skills through modern professional help.

    Planned Career Path: Well-planned Career Charts for all the Employees in each

    department which tells an employee where his/her career would reach in the


    Fig 3.7 Norms and Ethics to be followed in the plant

    Source: Lucas TVS

    In the plant all the employees have to follow a dress code along with ankle boots

    and that should be in proper way.

    In the plant none of the employee is allowed to bring the mobile inside the working

    zone, Smoking, running, mis-placing is not allowed in the working zone.

    If someone is coming by a motorbike than he/she should have a helmet other wise

    the gaurds will not give the permission to go inside the plant.

  • 36 | P a g e

    3.5 Specialised Products of Lucas TVS

    Product chart

    Auto electrical


    Face lift wiper (tml)

    Microbus rhd(tml)

    Microbus lhd(tml)

    Bolero wiper (m &m)

    Ngc/ngicv (ashok leyland)

    Sumo gold wiper(tml)

    Penguin wiper(tml)


    Sm82 (tml)



    9m14 (ashok leyland)

    6m14 (ptl & itl)


    Tata ace 3ha15 (tml)

    Dicore alternator (tml)

    Penguin alternator( tml)

    Zener alternator (tml)

    Iris bs4

    Sa 28(ashok leyland)

    A115(itl & ptl)


    Air filter Oil filter

    Fuel filter

    Flowchart 3.1: Product Range

  • 37 | P a g e

    3.5.1 Alternator

    An alternator is an electrical generator that converts mechanical energy to electrical

    energy in the form of alternating current. For reasons of cost and simplicity, most

    alternators use a rotating magnetic field with a stationary armature. Occasionally, a

    linear alternator or a rotating armature with a stationary magnetic field is used. In

    principle, any AC electrical generator can be called an alternator, but usually the term

    refers to small rotating machines driven by automotive and other internal combustion

    engines. Alternators are used in modern automobiles to charge the battery and to

    power the electrical system when its engine is running.

    Until the 1960s, automobiles used DC dynamo generators with commutators. With the

    availability of affordable silicon diode rectifiers, alternators were used instead. This

    was encouraged by the increasing electrical power required for cars in this period, with

    increasing loads from larger headlamps, electric wipers, heated rear windows and other


    Fig: 3.8 Alternator

    Source: Lucas TVS Fig: 3.9 Location of Alternator in Engine

    Source: Lucas TVS

    3.5.2 Starter Motor

    A starter (also self-starter, self, or starter motor) is an electric motor, pneumatic

    motor, hydraulic motor, an internal-combustion engine in case of very large engines or

    other device used for rotating an internal-combustion engine so as to initiate the engine's

    operation under its own power.

  • 38 | P a g e

    Engines are feedback systems which once started, rely on the inertia from each cycle to

    initiate the next cycle. In a four-stroke engine, the third stroke releases energy from the

    fuel, powering the fourth (exhaust) stroke and also the first two (intake, compression)

    strokes of the next cycle, as well as powering the engine's external load. To start the

    first cycle of engine's run session, the first two strokes must be powered in some other

    way. The starter motor is used for this purpose and is not required once the system starts


    Before the advent of the starter motor, engines were started by various methods

    including wind-up springs, gunpowder cylinders, and human-powered techniques such

    as a removable crank handle which engaged the front of the crankshaft, pulling on an

    airplane propeller, or pulling a cord that was wound around an open-face pulley.

    Fig: 3.10 Starter Motor

    Source: Lucas TVS Fig: 3.11 Location of Starter Motor in Engine

    Source: Lucas TVS

    3.5.3 Wiper and Wiper Motor

    A windscreen wiper or windshield wiper is a device used to remove rain, snow, ice

    and debris from a windscreen or windshield. Almost all motor vehicles, including cars,

    trucks, train locomotives, watercraft with a cabin and some aircraft, are equipped with

    such wipers, which are usually a legal requirement.

    A wiper generally consists of a metal arm, pivoting at one end and with a long rubber

    blade attached to the other. The arm is powered by a motor, often an electric motor,

    although pneumatic power is also used in some vehicles. The blade is swung back and

    forth over the glass, pushing water or other precipitation from its surface. The speed is

  • 39 | P a g e

    normally adjustable, with several continuous speeds and often one or more

    "intermittent" settings. Most automobiles use two synchronized radial type arms, while

    many commercial vehicles use one or more pantograph arms.

    The mechanism behind wipers is the windshield wiper motor, which provides the power

    the wipers need. A linkage converts the rotational output of the windshield wiper motor

    into the back-and-forth motion of the wipers. A worm gear controls the force that the

    windshield wiper motor delivers to the drive arm by slowing down the speed of the

    electric motor by 50 times while multiplying the torque by 50 times.

    Fig: 3.12 Wiper Motor

    Source: Lucas TVS Fig: 3.13 Location of Wiper Motor in Engine

    Source: Lucas TVS

    3.5.4 Filter

    A particulate air filter is a device composed of fibrous materials which removes solid

    particulates such as dust, pollen, mould, and bacteria from the air. A chemical air filter

    consists of an absorbent or catalyst for the removal of airborne molecular contaminants

    such as volatile organic compounds or ozone. Air filters are used in applications where

    air quality is important, notably in building ventilation systems and in engines.

    Fig: 3.14 Types of Filters

    Source: Lucas TVS Fig: 3.15 Air Filter

    Source: Lucas TVS

  • 40 | P a g e

    An oil filter is a filter designed to remove contaminants from engine oil, transmission

    oil, lubricating oil, or hydraulic oil. Oil filters are used in many different types of

    hydraulic machinery. A chief use of the oil filter is in internal-combustion engines in

    on- and off-road motor vehicles, light aircraft, and various naval vessels.

    A fuel filter is a filter in the fuel line that screens out dirt and dust particles from the

    fuel, normally made into cartridges containing a filter paper. They are found in most

    engines. Fuel filters serve a vital function in today's modern, tight-tolerance engine fuel

    systems. Unfiltered fuel may contain several kinds of contamination, for example paint

    chips and dirt that has been knocked into the tank while filling, or rust caused by

    moisture in a steel tank. If these substances are not removed before the fuel enters the

    system, they will cause rapid wear and failure of the fuel pump and injectors, due to the

    abrasive action of the particles on the high-precision components used in modern

    injection systems. Fuel filters also improve performance, as the fewer contaminants

    present in the fuel, the more efficiently it can be burnt.

    Fig: 3.16 Various types of

    Oil filters and Fuel Filters

    Source: Lucas TVS

  • 41 | P a g e

    3.6 Specialised Customers of Lucas TVS


    Wipers & Wiper







    Starter Motors



    Starter Motors




    Starter Motors



    Starter Motors




    Starter Motors

    Wiper & Wiper




    Starter Motors



    Starter Motors



    Starter Motors




  • 42 | P a g e


    Starter Motors




    Starter Motors

    Wiper & wiper Motors


    Starter Motors

    Wiper & wiper Motors





    Starter Motors




    Starter Motors

    Wiper & wiper Motors




    Starter Motors



    Starter Motors



    Starter Motors



    Table 3.1: Customers of Lucas TVS

  • 43 | P a g e



  • 44 | P a g e

    4.1 Organization Structure under the Plant

    Flowchart 4.1: Organization Structure under the plant

    The plant is headed by Mr. K. Parthsarthy and the types of organisation structure used

    by Lucas TVS that face considerable environmental uncertainty that can be met through

    a divisional structure and that also required functional expertise or efficiency.

    This type of structure is used by multinational companies operating in the global

    environment, for example, International Business Machines USA. This kind of

    structure depends on factors such as degree of international orientation and

    commitment. Multinational corporations may have their corporate offices in the

    country of origin and their international divisions established in various countries

    reporting to the CEO or president at the headquarters.

    Plant head

    K Parthsarthy

    HR Head

    D D Satyawali

    Marketing head

    Badri Prasad

    Production Head (Filter) Rahul Bhatt

    Production Head (Auto Elcetrical) Sunit Kumar


    Methods and MSE jagdish rao


    I S Patwal

    Store head

    Ravikant sharma

    Quality Assurance Ajay Kumar Sharma

    Material head

    Rajesh saini

  • 45 | P a g e

    While the focus is on international geographic structures, companies may also choose

    functional or process or product departmentation in addition to geographic pattern while

    at the head quarters the departmentation may be based on function.

    4.2 Organization Structure under the Production Department

    Flowchart 4.2: Organization Structure under the production Department

    This the production department hierarchy followed by the Lucas TVS the production

    Department is headed by Mr. Sunit Kumar Chauhan and the PPC Manager Mr. Sumanta

    Das is the 2nd in Command. All the Four line Engineers of respective AEC component

    works under him and all the line engineers heading their respective production line each

    and every line has line operators having a team of employees more than 15. The

    reporting criteria is direct and very hierarchical but for any other queries the employees

    can go directly to the Production head.

    Production Head

    Auto Electrical

    Sunit Kumar Chauhan


    Sumanta Das


    Rajeev Ranjan

    Anupam Shukla


    Komal Singh

    Aftab Alam Ansari

    Jagdish Pandey

    After Market

    Kundan Negi

    Jyoti Vist

    (Field Coil)


    Vikas Raghav

    Bhaskar Joshi

    Hem Pathak

    Dhirendra Bhatt

  • 46 | P a g e

    4.3 Awards and Recognitions

    International Recognition

    Awards Institutions

    Deming Grand Prize JUSE

    Deming Application Prize JUSE

    Excellence in Quality promotion

    (ARE QP)

    Asian Network for Quality

    JIT Innovation Award JIT Management Lab, Tokyo

    JIT Grand Prix Award (3 times) JIT Management Lab, Tokyo

    National Recognition

    Awards Institutions

    Excellence in Export Award

    Technology Award

    Gold Trophy for


    Productivity Award

    Automotive Component

    Manufacturers Association of India


    Green Manufacturing Excellence


    Frost & Sullivan

    Energy Conservation Award Government of India

    Rajiv Gandhi National Quality


    Government of India

    National HR Excellence Award

    (Strong commitment to HR


    Confederation of Indian Industry


    Certification of appreciation for Tax


    Government of India

    Export Excellence award Government of India

    Table 4.1: Awards and recognitions

  • 47 | P a g e

    4.3 Quality policy

    We are committed to achieving ever increasing levels of satisfaction through continual

    improvements to the quality of our products and services by continually improving the

    effectiveness of quality management system.

    It will be our endeavour to increase customer trust and confidence in the label Made

    by Lucas TVS


    Achieving OE Customer Line Rejection less than 10PPM

    Continual reduction of warranty returns

    Providing warranty services to customers within 24 Hrs of receiving the


    Delivering products to customers in right quantity on time, every time


    Quality begins with a comprehensive understanding of changing customer


    Quality means providing value to customer in the use of our products and


    Quality is built into the design of products, processes and materials

    Quality improvements lead to productivity and cost improvements

    Quality means preventing defects and not detecting them only after occurrence

    Quality demands commitment by all employees, suppliers and dealers

    Quality is achieved through total employee involvement and training

    Quality cycle begins again with a comprehensive understanding of customer

    satisfaction levels


    Practices quality individually and as team

    Do right first time on time and every time

    Enhance employee performance through training, motivation and small group


  • 48 | P a g e

    Understand and increasing customer needs and expectations and satisfy them

    Eliminate activities which do not add value

    Standardise processes and systems with SOP and practice

    Implement Systematic supplier/dealer development Programmes for improved


    Practice continual improvement as a way of life in all activities

    Next process is your customer, satisfy him

    Apply statistical tools extensively across the organization

    Revision: 02

    Date: 26.08.2009 MANAGING DIRECTOR

  • 49 | P a g e



  • 50 | P a g e

    5.1 Supply Chain Management

    Supply Chain Management is the sequence of the organizations their facilities,

    functions, and activities - that are involved in producing and delivering a product or

    service. Unlike the others manufacture companies Lucas TVS is also having a typical

    manufacturing SCM.

    The supply chain of the Lucas TVS consists of all parties involved, directly or

    indirectly, in fulfilling a customer request, supply chain not only includes the

    manufacturer and suppliers, but also transporters, warehouses, retailers, and customers

    themselves. Within each organization, such as manufacturer, the supply chain includes

    all functions involved in receiving and filling a customer request. These functions

    include, but are not limited to, new product development, marketing, operations,

    distribution, finance, and customer service.

    Such type of supply chain is dynamic and involves the constant flow of information,

    product, and funds between different stages. Hence, Lucas TVS provides the product,

    as well as pricing and availability information, to the customer. The customer transfers

    funds to Lucas TVS and the Company conveys point-of-sales data as well as

    replenishment order via trucks back to the store Lucas TVS transfers funds to the

    distributor after the replenishment. The distributer also provides pricing information

    and sends delivery schedules to Lucas TVS. Similar information, material, and fund

    flows take place across the entire supply chain. That process involves an additional flow

    of information, product, and funds between various stages of the supply chain.

    This illustrate that the customer is an integral part of the supply chain in Lucas TVS.

    The primary purpose from the existence of the supply chain is to satisfy customer needs,

    in the process generating profits for itself. In Lucas TVS the supply chain activities

    begin with a customer order and end when a satisfied customer has paid for his or her

    purchase. In the organization, the term supply chain conjures up images of product or

    supply moving from suppliers to manufacturers to distributors to retailers to customers

    along a chain. It is important to visualize information, funds, and product flows along

    both directions of this chain. Supply chain in Lucas TVS also imply that only one player

    is involved at each stage. In reality Lucas TVS may receive material from several

    suppliers and then supply several distributors. Thus, the supply chain is actually

  • 51 | P a g e

    networks. It may be more accurate to use the term supply network or supply web to

    describe the structure of most supply chains.

    A typical supply chain may involve a variety of stages. These supply chain stages






    Component/Raw material suppliers

    Flowchart 5.1: Supply chain management of Lucas TVS

    The above chart is the supply chain structure of the Lucas TVS. According to this chain

    there are three main activities are carried out i.e. purchasing which involves purchasing

    raw materials from the Suppliers after that production process in which the raw material

    is stored in the stores followed by scheduled production than the Finished goods are

    sent to F/G Stores, than the distribution process, Lucas TVS is a B2B as well as B2C








    OEM Customer

  • 52 | P a g e

    company so the company directly sent the F/G to the OEM Customers and to the

    distributor transfers it the retailers and hence to the customers.

    Supplier of the Lucas TVS
































    Table 5.1: Suppliers of Lucas TVS

  • 53 | P a g e

    Functions of Supply Chain Management

    5.1.1 Production Planning

    Production planning is done based on the demand supply trend in the market. The main

    concept adopted is supply chain management. Supply Chain Management is the

    management of upstream and downstream relationships between suppliers and

    customers to deliver the best value to the customer at the least cost to the demand chain

    as a whole. Supply chain management software tools bridge the gap between the

    customer relationship management and the demand chain management. The

    organizations supply chain processes are managed to deliver best value according to

    the demand of the customers. One of the factors that affects the production process is

    the seasonality in business. Some sectors (not the end users) have a seasonality in

    business which in turn is in direct co relation with the raw material production and


    Flowchart 5.2: Function In Production Planning and control




    Production Planning



    HR Department

    Production Scheduling

    PPC Department

    Production Department

    Production Control

    Production Process

    Loss Identification

    Production Monitoring

  • 54 | P a g e

    Thus, seasonality plays a vital role in the production process. Product development and

    management is an aspect of the inorganic sales function of the organisation. It mainly

    focuses on the development of newer applications of the existing products and to use

    the raw material of polymer in newer environment friendly application to open up new

    horizons. It deals with the planning of the efficient use of plastic as a product due to

    constant opposition from government and other environmental organisations.

    In July month the companys marketing team received an order of 7,500 alternators

    from TATA Motors, than the marketing team designed an outlaw of the orders and

    transferred it to the PPC (production Planning and Control) Department. PPC, checked

    the CTW if there were some alternator available or not. There were no alternator in the

    CTW stock than the PPC department finalised the order for 7500 alternators and handed

    over it to the Department there, the HR officer decided the advance payment and Post

    payment. After that the Hr department allotted the man power requirement for the order

    as per the time period mentioned by the TATA motors for the order. The HR department

    designed a cell log sheet and transferred it to the PPC department than the PPC manager

    checked the Inventory to get the information of raw materials, the raw material was not

    enough to complete the order than the PPC manager gave the information to the

    Production Head. From there the production head ordered the required raw material

    from the respective supplier. After purchasing the raw material the material head

    checked the quality of the raw material as per standard assigned by the Line engineers.



















































    Table 5.2: Cell Log Sheet

  • 55 | P a g e

    The raw material inventory for the 7,500 alternators was more than 50,000 (including

    all the parts) and that was not possible for the material head to assure the quality in

    such time tenure. Than the Inventory department took a random sampling of 100 of

    each part and checked the each respective one in a machine named Accurate. There

    they find that the raw material is good and proper for the production. *if the sample

    will not be able to clear the standards i.e. more than 97.5 % than the company will

    reject the raw material order and the supplier company will be penalised, rejection

    phenomenon is called DRSM.
























































    7500 7500 325 300 SUN 325 325 300 325 300 300 SUN A




    325 325 SUN 300 325 325 300 300 300 SUN B

    300 325 SUN 325 300 325 325 300 300 SUN C

    Actual 7500 950 950 0 950 950 950 950 900 900 0 Total

    Table 5.3 : Break down of monthly plan into Day-wise Plan of Alternator

    5.1.2 Production Scheduling

    Scheduling is the process of arranging, controlling and optimizing work and workloads

    in a production process or manufacturing process. Scheduling is used to allocate plant

    and machinery resources, plan human resources, plan production processes and

    purchase materials. It is an important tool for manufacturing and engineering, where it

    can have a major impact on the productivity of a process. In manufacturing, the purpose

    of scheduling is to minimize the production time and costs, by telling a production

    facility when to make, with which staff, and on which equipment. Production

    scheduling aims to maximize the efficiency of the operation and reduce costs.

    After getting the information of the raw materials and the man power the PPC

    department broke down the monthly plan into the day wise plan and assigned the man

    power as per their respective position in the production line. The target had to be

    achieved in 10 days which means that more than 750 alternator should be produced

    daily and there were 3 shifts of the employees so more than 300 alternator should be

  • 56 | P a g e

    produced per shift to fill the holiday gaps during production. There is only one

    production line in the plant that is of U-Shaped for each shift, line operators are allotted

    for monitoring and line engineers for guiding. There were 12 stops in the production

    line and the main assembly line is consist of two sub-assemblies. Firstly the line

    operators and employees produce a master sample for the alternator and checking the

    quality of that alternator as per the parameter assign to the respective product, if the

    master sample is found to be good than, the line operators will assign the task for that

    shift i.e. scheduled production of alternators for that shift.

    From 03-07-2016 TO 10-07-2016

    Line Eng. C.C NO OPERATOR NAME Shift Emp. Under

    Vikas Raghav

    U0531 Rakesh Chandra A 15

    U0500 Harish Singh Rana B 15

    U6708 Subir Kumar C 12

    Table 5.4: Shift Breakdown

    Production scheduling tools greatly outperform older manual scheduling methods.

    These provide the production scheduler with powerful graphical interfaces which can

    be used to visually optimize real-time workloads in various stages of production, and

    pattern recognition allows the software to automatically create scheduling opportunities

    which might not be apparent without this view into the data. In Lucas TVS the

    scheduling technique is, backward scheduling i.e. planning the tasks from the due date

    or required-by date to determine the start date and/or any changes in capacity required.

    Fig 5.1: When Master Sample is OK Fig 5.2: When master sample is not OK

    The benefits of backward production scheduling include:

    Process change-over reduction

  • 57 | P a g e

    Inventory reduction, levelling

    Reduced scheduling effort

    Increased production efficiency

    Labour load levelling

    Accurate delivery date quotes

    Real time information

    5.1.3 Production Monitoring

    Production Monitoring means an on-site Product Inspection performed every day of

    your production. An inspector scrutinizes your factory, enforcing your specifications,

    selecting units at random for inspection and identifying and eliminating defects.

    Production head and PPC Manager examines the Produced alternators after every shift

    and makes the report to check the gap between the actual and plan production.

    Assembly line of Alternator

    Flowchart 5.3: Assembly line of Alternators

    De Side (Half Assembly) +Ve


    De Bracket And Bearing


    Retainer Plate

    De And Rotor Assembly

    Fan And Pulley

    De And Sre Assembly (Full


    Cowl Assembly


    Sre Side (Half Assembly) Ve


    Sre And Stator Assembly

    Rectifier Assembly

    Regulator Assembly

    Carbon Brush Assembly

  • 58 | P a g e

    At every section of the assembly line, line-operators always check and guide the

    employees. In each section of the assembly line there is one person and after every two

    hours there is scheduled inspection is being done line Engineers. There are some section

    where the employees required more guidance and instructions. Hence, in each section

    the company has installed Japanese Software POKA-YOKE, is a Japanese term that

    means "mistake-proofing" or inadvertent error prevention. The key word in the

    second translation, often omitted, is "inadvertent". There is no Poka Yoke solution that

    protects against an operators sabotage, but sabotage is a rare behaviour among people.

    A Poka-yoke is any mechanism in a lean manufacturing process that helps an equipment

    operator avoid (yokeru) mistakes (poka). Its purpose is to eliminate product defects by

    preventing, correcting, or drawing attention to human errors as they occur. The concept

    was formalised, and the term adopted, by Shigeo Shingo as part of the Toyota

    Production System. It was originally described as baka-yoke, but as this means "fool-

    proofing" (or "idiot-proofing") the name was changed to the milder poka-yoke.

    In Lucas TVS, Poka-yoke is implemented at many steps in production process where

    something can go wrong or an error can be made. For example, a fixture that holds

    pieces for processing might be modified to only allow pieces to be held in the correct

    orientation, or a digital counter might track the number of spot welds on each piece to

    ensure that the worker executes the correct number of welds.

    There are three steps of Poka-yoke followed in Lucas TVS

    The contact method identifies product defects by testing the product's shape, size,

    colour, or other physical attributes.

    The fixed-value (or constant number) method alerts the operator if a certain number

    of movements are not made.

    The motion-step (or sequence) method determines whether the prescribed steps of

    the process have been followed.

    Either the operator is alerted when a mistake is about to be made, or the Poka-yoke

    device actually prevents the mistake from being made. In Lucas TVS, the former

    implementation would be called a warning Poka-yoke, while the latter would be

    referred to as a control Poka-yoke

  • 59 | P a g e

    Lucas TVS argued that errors are inevitable in any manufacturing process, but that if

    appropriate Poka-yokes are implemented, then mistakes can be caught quickly and

    prevented from resulting in defects. By eliminating defects at the source, the cost of

    mistakes within a company is reduced. A methodical approach to build up Poka-yoke

    counter measures has been proposed by the Applied Problem Solving (APS)

    methodology, which consists of a three-step analysis of the risks to be managed:

    Identification of the need

    Identification of possible mistakes

    Management of mistakes before satisfying the need

    This approach can be used to e