DIVGI INDUSTRIES SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

CHAPTER-I

INTRODUCTION

A social unit of people that is structured and managed to meet a

need or to pursue collective goals. All organizations have a management

structure that determines relationships between the different activities and the

members, and subdivides and assigns roles, responsibilities, and authority to

carry out different tasks. Organizations are open systems--they affect and are

affected by their environment

There are a variety of legal types of organizations, including

corporations, governments, non-governmental organizations, international

organizations, armed forces, charities, not-for-profit corporations, partnerships,

co-operatives, and universities. A hybrid organization is a body that operates in

both the public sector and the private sector simultaneously, fulfilling public

duties and developing commercial market activities.

In the social sciences, organizations are the object of analysis for a

number of disciplines, such as sociology, economics,[1] political science,

psychology, management, and organizational communication. The broader

analysis of organizations is commonly referred to as organizational structure,

organizational studies, organizational behavior, or organization analysis. A

number of different perspectives exist, some of which are compatible:

GOVT. FIRST GRADE COLLEGE, SIRSI Page 1

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1. From a process-related perspective, an organization is viewed as an entity

is being (re-)organized, and the focus is on the organization as a set of

tasks or actions.

2. From a functional perspective, the focus is on how entities like

businesses or state authorities are used.

3. From an institutional perspective, an organization is viewed as a

purposeful structure within a social context.

Economic approaches to organizations also take the division of labour

as a starting point. The division of labour allows for specialization. Increasing

specialization necessitates coordination. From an economic point of view,

markets and organizations are alternative coordination mechanisms for the

execution of transactions.

By coordinated and planned cooperation of the elements, the

organization is able to solve tasks that lie beyond the abilities of the single

elements. The price paid by the elements is the limitation of the degrees of

freedom of the elements. Advantages of organizations are enhancement

addition and extension.



STATEMENT OF THE PROBLEM

One of the main problems faced by management in organizations is

the need to maintain a competitive advantage. With the global economic

climate it has been difficult for companies and organizations to keep up with

their rivals, let alone better them. Corporate culture is one responsibility that

management needs to adhere to because it is vital when you want to succeed in

business. It creates a sense of innovation and productivity as opposed to a more

negative culture which may stifle employees and detrimentally affect job

gratification. In addition, managers have a huge responsibility for guiding the

organization in the right their employees and resources in order to put the

organization in a direction that will grant them success. Most modern

management take on a strategic management style which initially states the

main aim of the particular mission which follows by the processes that will be

carried out on a day-to-day basis.

Moreover, one of the most important aspects that a good

manager requires is solid communication skills. It is very likely in business that

you are going to come into contact with conflicting styles of communication,

however it is the manager's job to be aware of this as well as their own style.

They need to be able to enforce their own style of communication while being

able to adapt to others, especially if they are consulting with other organizations

and companies.



The first sees in spontaneity decisions made at root

level, local initiative and the absence of delegated decision making. In this

sense all revolutions have been largely spontaneous, at least at first.

Consciousness, as the opposite, comes to mean centralization and plans carried

out, on instructions, by members of a disciplined organization. They may,

individually, be unaware of the part their action plays in the total scheme, and

the consciousness is that of the leadership, whether it is elected or not. Seen

thus, Lenin’s claim that consciousness must come to the workers from outside,

from an organization of professional revolutionary intelligentsia, would indeed

be the sinister cornerstone of an elitist doctrine that many see it to be. At times

Lenin does stray into this meaning of the terms, especially when seeming

regrettably to make a virtue of the necessary limitations of internal democracy

imposed on a revolutionary organization by illegality and the need for secrecy.



REVIEW OF LITERATURE

Organizing is a study of collection the available resources,

charting and chalking out their orderly uses and finally accomplishing the pre-

set organizational plans by structuring tasks.

In the word of Chester Bernard, an organization is “a systematic

of consciously coordinated activities or efforts of two or more persons”. In

other words, it can be called as a cooperative system in which people gather and

formally agree to combine their effort for a common purpose.

According to LOUIS ALLEN “Organization is the process of

identifying and grouping work to be performed, defining and delegating

responsibility and authority and establishing relationship for the purpose of

enabling people to work most efficiently together accomplishing objectives.

Management s not only important from the companies’ point of

view but it is required in each and every activity one can think of. Management

comprises directing and controlling group of one or more people or entities for

the purpose of coordinating and harmonizing that group to wards accomplishing

a goal. Management often encompasses the deployment and manipulation of

human resources, technological resources, and natural resources. Management

operates through various functions, often classified as;

1. Planning

2. Organizing

3. Leading/motivation

4. Controlling



According to F.W. TAYLOR “management is the art of knowing

what you want to do and then seeing that it is done in the best and cheapest

way”

According to HENRY FAYOL “To manage is to forecast and to

plan, to organize, to command, to coordinate and to control”

OBJECTIVES OF THE STUDY

1. To study the organization and management of divgi industry.

2. To study production process of divgi industry.

3. To study labour and capital of divgi industry.

4. To know the history of divgi industry.

5. To know the infracture facility of the divgi industry

METHODOLOGY AND PROJECT DESIGN

Research methodology is a systematic way for solving any research

problem. It’s a science of any thing how research is done scientifically. It

studies the various steps that are generally adopted by a researcher in studying

the research problem.

Source of data collection:



Primary data

The primary data are those which have been collected fresh for the first

time and thus happen to be original in character. The primary data collection

involves the collecting of information from the first time by observation,

experiment, and questionnaire and through interview schedule in the original

form by the researcher himself or his nominees.

Secondary data

These data are those data which have been collected by some other

and which have been processed. Generally speaking secondary data are

information which has been previously collected by some organization to

satisfy its own needs but the department under reference for an entirely

different reason using it.

There are two sources for secondary data;

1. Published data: data that is already available in books, magazines, trade

journals, newspapers, report prepared by research scholar etc

2. Unpublished data: this is not published. It can be found in unpublished

autobiographies, some govt. aspects and private individual organizations.



STUDY AREA

The researcher intended to study in sirsi taluk of uttarakannada district

of Karnataka state. Divgi Industries Private Limited (DIPL) is situated at

Banavasi Road, Sirsi. It is a medium scale engineering industry of prestigious

city SIRSI. DIPL was incorporated in the year 2000.Its actual commercial

activities started in April 2003.

PERIOD FOR THE STUDY

This study is mainly for the purpose of partial fulfillment of BBA

study. The allotted time is very less only one month. Study is started from 9th

December 2012 and ends in 9th January 2013.

SCOPE OF THE STUDY

Importance or area of study: to study the problems and suggestions

The studies throw various aspects of organization and management

such type of very useful to know organization and management and also to

overcome the problem of organization and management. It is very useful to the

entrepreneur to under stand the nature and working of organization and

management and also to adopt innovative methods. By that to reduce cost of

production and to also to improve the quality of the product and to get

maximum benefit.



LIMITATIONS OF THE STUDY

The study is limited and may not applicable in all places in all time

because of the study is confined to a various limitations:

a. DIPL depends completely on Divgi Warner Pvt. Ltd (Pune) for

procurement of raw materials & supply of finished goods.

b. Limited study area, the study is conducted sirsi uttarkannada

district.

c. Limited time, the study is only one month 9th December2012 to 9th

January2013.

d. Another Limitation is that limited resources.

e. Lack of co ordination is the one more limitation of this study.



CHAPTER SCHEME

Chapter-1

1. Introduction

2. Statement of the problem

3. Review of literature

4. Objective of the study

5. Methodology

a) Source of primary data

b) Source of secondary data

c) Study area

d) Sampling for the study

e) Period of study

6. Scope for the study

7. Limitation for the study

Chapter-2

Nature and growth of auto component industry

1. Nature and growth of auto component industry in world

2. Nature and growth of auto component industry in India

3. Nature and growth of auto component industry in Karnataka

Chapter-3

1. Company profile

2. Product profile



Chapter-4

Departmental study

1. Purchase department

2. Stores department

3. Manufacturing department

4. Human resource department

5. Quality department

6. Computer aided design department

7. Finance department

8. Maintenance department

Chapter-5

1. Summary

2. Findings

3. problems

4. Suggestions

5. Conclusion

6. Bibliography



CHAPTER -II

NATURE AND GROWTH

Auto Components Market

Strong growth in the domestic automobile industry

and a stable 10-15% future growth outlook over the next two years would drive

demand for auto components both in the domestic OEM and the aftermarket.

Exports too are in a scale up mode for leading players like Bharat Forge, Amtek

Auto and MICO. We believe, a slowdown in key global markets and the fragile

financial health of global OEMs as also Tier-I vendors would lead to higher

outsourcing by these players to low cost auto component players in the long

term. We expect 15% revenue CAGR and 22% earnings CAGR for our auto

component universe over FY07-09 led by strong revenue and earnings growth

for Bharat Forge, MICO and Balkrishna Industries over the same period.

Domestic growth on a firm footing, exports looking up:

It is expected that domestic revenue for auto component companies will

remain strong given a stable 10-15% volume growth outlook for various auto

segments. Exports for leading players, too appear to be scaling up and a

slowdown in key global markets and fragile financial health of global OEMs

and Tier-I vendors will only accelerate the pace of outsourcing to leading auto

component players in Low Cost Countries like India. Amtek Auto has

successfully implemented the strategy of acquiring customer base overseas and

outsources the labor intensive operations to its low cost Indian facilities.



Expect strong earnings momentum for leading players:

The expected revenue CAGR is 15% and earnings CAGR is 22% for auto

component market over FY07-09 led by strong growth for Bharat Forge, MICO

and Balkrishna Industries

Strong growth outlook for domestic auto OEMs to boost demand

While auto component companies retain focus on enhancing their

overseas revenues, their domestic businesses too appear on a firm footing with

buoyant growth outlook for the domestic auto OEMs. Favorable demographics

along with very low vehicle penetration indicate strong long-term demand

prospects for cars and two-wheelers. Strong growth in industrial production,

emergence of new growth drivers like organized retail, and the ongoing pace of

investments and infrastructure development in the country would drive demand

for commercial vehicles. While factors like higher interest rates and a higher

base could check growth rates in the near term, the industry’s prospects

nevertheless remain strong.

NATURE AND GROWTH OF AUTO COMPONENT INDUSTRY IN

WORLD

The global auto component industry experienced moderate growth

over the last five years and is expected to continue its growth momentum

reaching approximately $730.8 billion in 2017 with a CAGR of 3.2% over next

five years (2012-2017). APAC is anticipated to emerge as the leading growth

market over the forecast period due to high demand and low-cost manufacturing



practices in the region. Lucintel, a leading global management consulting and

market research firm, has analyzed the global auto component industry and

presents its findings in "Global Auto Component Industry 2012-2017 Trend,

Profit, and Forecast Analysis." The global auto component industry is a highly

diversified sector that involves engine and auto component manufacturers;

including aftermarket parts manufacturers, suppliers, dealers, and retailers.

Features and Scope

To make any investment or strategic decision, you need adequate and timely

information. This market report fulfills this core need. Some of the features of

this market report are:

a. Industry size estimates in terms of (US $) value by region and by

segment

b. Global auto component industry analysis annual trend (2006-2011)

and forecast (2012- 2017)

c. Porter's Five Forces analysis

d. New product launch and merger and acquisition activity in global

auto component industry

e. Quarterly demand trend (Q1 2010 to Q4 2011)and forecast

analysis (Q1 2012 to Q4 2012) for global auto component industry

f. Gross and net profit trends in the global auto component industry

g. Cost structure trend in the global as well as regional auto

component industry



Industry Analysis & Industry Trends

The Global Auto Parts & Accessories Manufacturing industry

cannot exist without motor vehicle production. Over the past five years, motor

vehicle production has been supported by furious growth in China and other

developing economies. Incomes in China have risen, which has created new

demand for motor vehicles. Motor vehicle manufacturers began opening plants

to satisfy demand, and parts manufacturers soon followed. A rise in the number

of vehicles in use globally also been supported the aftermarket parts segment.

However, skyrocketing fuel prices and stringent emissions regulations have

slowed global demand for new motor vehicles, which has flowed on to slowed

automotive parts and accessories revenue.

Industry SWOT Analysis

The Global Auto Parts & Accessories Manufacturing industry

is in decline in mature economies such as the United States, while it is enjoying

a growth phase (nearing maturity) in emerging economies. The majority of the

rise in industry establishments over the 10 years through 2017 is due to the

explosion of the automotive sector in China. The story is completely different in

the United States, for example, where companies are going bankrupt, being

acquired and consolidating furiously to survive. Global companies have been

able to hedge against domestic downturn by expanding into new locations such

as China, India, Mexico, Brazil and Russia

Indian auto component industry has seen some silver lining with

exports, which continues to grow at 15-20%. However, some of the domestic

players say, although the first quarter was good for exports, there are signs of



slowdown in the international market too, especially in the Asia-Pacific region.

We are glad that exports in 2012-13 continue to be robust despite the global

economic turmoil. Our exports stood as $6.9 billion in 2011-12, growing 33%

over $5.2 billion in 2010-11. We expect exports to continue to grow at around

15% this year, which is somewhat slower than that of the last year. Europe,

especially Germany, with 35% share continues to be our largest export

destination followed by the US with 23% share. Interesting, 80% of our exports

are to the OEMs, which is a testimony to the global acceptance and recognition

of India manufactured auto components.

NATURE AND GROWTH OF AUTO COMPONENT INDUSTRY IN

INDIA



The auto component industry has come of age and now forms an

important component of the Indian economy. In recent years, it has grown more

impressively, fetch double digit growth. More interestingly, it has captured

attention as well as business from leading auto makers of the world. The

industry plays a crucial role in the automobile sector. Manufacturing vehicles

typically involve assembling a large number of components out-sourced from

number of ancillaries or component manufacturers. Competitiveness with

quality as a theme has been the watchword for the Indian industry and

especially the auto component industry ever since the Indian economy was

opened up to the world in the early 1990s. While economic revival, lower

interest rates and better road infrastructure are driving domestic demand for

automobiles and, therefore, components, increasing outsourcing by global

automobile majors is creating a huge export opportunity for Indian component

manufacturers.

Industry dynamics

The Indian auto components industry started out small in the

1940s supplying components to Hindustan Motors and Premier Automobiles,

two largest manufacturers of automobiles in India at that time. In the 1950s, the

arrival of Telco, Bajaj, and Mahindra & Mahindra led to steadily increasing

production. A closed market with high import tariffs characterized the Indian

auto component industry pre 1985. 1985-91 saw significant JVs in the Indian

auto component segment with Japanese manufacturers. After 1991, the

delicensing of the sector led to global auto manufacturers initiating assembly

operations in India. Industry into the following product segments:



i. Engine and engine parts: Pistons, piston rings, piston pins,

gaskets, carburetors, fuel injection pumps, etc.

ii. Drive transmission and steering parts: Transmission gears,

steering gears, crown wheels and pinions, axles, wheels, etc.

iii. Suspension and braking parts: Leaf springs, shock absorbers,

brake assemblies, etc.

iv. Electricals: Spark plugs, starter motors, generators,

distributors, voltage regulators, flywheel magnetos, ignition

coils, etc.

v. Equipment: Dashboard instruments, headlights, horns,

wipers, etc.

vi. Others: Fan belts, sheet metal parts, plastic moldings’, etc.

The major players in the auto ancillary industry can be classified

between the ones catering to the two wheeler industry and the four wheeler

industry. MICO, Bharat Forge, Sundaram Clayton, Sundaram Brakes, Rane

Brakes, etc. mainly cater to commercial vehicles/tractors. There are many

companies like Ucal Fuel, Motherson Sumi, PRICOL, Subros, etc. which

supply mainly to car industry. Companies like Munjal Showa, Lakshmi Auto,

Omax Auto, etc. cater to two-wheelers.

Sectoral Performance



The auto-ancillary was the best performing sector among the

intermediate goods. Different segments of the sector such as bearing, casting,

fasteners, batteries and tyres have grown in a range of 25-40%.

The main reason for boost in export is that the nature of the

customer base of overseas market has been undergoing major change. Indian

companies are transforming into principal suppliers for the Original Equipment

Manufacturers (OEMs) from the after sales market or replacement market. The

company has facilities for manufacturing patterns, centrifugal castings of

phosphor bronze rings, ferrous castings, aluminum castings, heat treatment,

forging, fabrications and cutter manufacturing in-house which constitute the

major raw materials for gearboxes.

Future Outlook

Given the significant scale up of capacities by the domestic

majors, and their improving global cost effectiveness, the domestic auto

ancillaries are well set to sustainable scale up their share of the global auto

component pie. The players are aggressively focusing on new client acquisition,

inorganic growth in developed countries and cost reduction measures on fronts

like quality, delivery, design and management.

Growth in the domestic market would be driven by sustained

growth in supplies to OEMs as well as acceleration in the demand from

replacement market. Moreover, cars, utility vehicles and CVs made in India are

increasingly getting acceptance in foreign markets, thus driving the demand

further. Even Indian two-wheeler majors are targeting markets abroad.

Simultaneously, foreign auto majors like Ford and Hyundai are making India its



manufacturing base for several models. Overall, the short to medium term

outlook for the domestic auto component producers is positive. Automobile

industry, which is a key driver of auto-component industry, is likely to grow at

12-17%. Along with this some other key drivers including exports, outsourcing,

and replacement market are slowing down competitiveness in global markets in

turn boosting the productivity of Indian auto components industry.

Hindustan Composites is planning break lining and clutch facing

unit near the proposed Tata Motor plant at Singur in Hooghly district of West

Bengal. The company has already started discussion with few tier 1 component

manufacturer of Tata Motors in this regard The company is planning to tie up

with an outfit which is likely to be entrusted with for the break assembly of

small car. Tata Motors is overhauling its outsourcing policy across all

categories of cars. As part of this policy, which is aimed at keeping costs under

control, the company has taken a conscious decision to move away from the

multiple vendor models to a single vendor model.



The world's top car makers turn to India for the

nuts and bolts of their vehicles. Riding this success, and capitalizing on the

spiraling demand of domestic auto companies, the Indian automobile

components industry has emerged as one of India's fastest growing

manufacturing sectors, and a globally competitive one. A number of them

source critical components from India, with engine parts making up nearly a

third of all exports:

10%

11%

33%13%

13%

20%

Electrical Parts

Equipments

Engine Parts

Suspension & Braking Parts

Body And Chasis

Drive Transmission & Steering Parts



NATURE AND GROWTH IN KARNATAKA

The State of Karnataka is bounded by Maharashtra and Goa

States in the North and North-West; by the Arabian Sea in the West; by Kerala

and Tamil Nadu States in the South and by the State of Andhra Pradesh in the

East. The State extends to about 750 kms from North to South and about 400

kms from East to West, and covers an area of about 1,91,791 sq.kms. Karnataka

accounts for 5.83 percent of the total area of the country (32.88 lakh sq.Kms)

and is the eighth largest Indian state by area, the ninth largest by population and

comprises of 28 districts. Bangalore is the capital city of the State and is at the

forefront of the rapid economic and technological development. Kannada is the

official and most widely spoken language.

The State is blessed with a fair share of natural resources – an

extensive river systems that aids power generation besides sustaining

agriculture, a wide spectrum of minerals ranging from iron ore to limestone,

granite to gold, a temperate climate conducive to growth of agriculture as well

as industry besides a 320 km long coastline which supports a flourishing marine

industry



Present Scenario & Strengths

The growth drivers for the development of the sector are the rising

income levels and higher disposable income, rapid urbanization of population

and growth in semi urban areas. Globally the auto component industry is set to

grow at about 3% till 2015 with 635 of growth coming from emerging

countries. India has opportunity to capture major portion of the outsourcing deal

in the next decade. Termed a priority sector, auto and auto parts hold the key to

economic growth of the state. This is an industry where the small and medium

enterprises (SME) can showcase their mettle; concentration on auto components

by itself can accelerate the growth.

Potential & Opportunities

1. The fourth-largest State in Automotive production in India.

2. Produces more than a quarter of India’s Aircraft and Spacecraft.

3. One of the largest Foundry industry clusters at Belgaum.

4. India’s first Aerospace SEZ operational at Belgaum.

Prime Locations of Business

The main locations for automobile industries and the resources

available are at Bangalore Rural, Ramanagara, Kolar, Dharwad, and Belgaum.

Karnataka Industrial Areas Development Board (KIADB) is developing an

industrial area near Bidadi in 442 acres mainly to promote Automobile &

manufacturing Industries.



Major Players

Bosch Toyota Kirloskar Motor Ltd TVS Motors

VolvoTata Motors L&T Komatsu

Vikrant Tyres BEML Escorts

Reva Electric Cars

Exports: The Exports of auto components grew to USD 5.2 billion

from USD 3.4 billion in 2009-10. Europe accounted for 36% of exports

followed by Asia and North America at 28% and 23% respectively. Although

the proportion of exports to Europe declined from 40% last year to 36%,

however in absolute terms the exports grew by 46%. Exports to North America

and Asia grew by 65% and 48% respectively. With exports to North America,

Europe Asia and other parts of the world are improving, a full recovery of

exports are expected to gain strength in 2011-12.


http://www.toyotabharat.com/

http://www.tvsmotor.in/

http://www.komatsu.com/

http://www.bemlindia.com/


Imports: With growth in the domestic market, imports of auto

components also grew by 30% to USD 8.5 billion from USD 6.5 billion in

2009-10; almost 85% of the imports were accounted for by the OEMs, the rest

15% by the aftermarket. Asia and Europe contributed to over 56% and over

35% of the imports respectively. Within Asia, China, South Korea and Thailand

contributed to the maximum imports to India while from Europe the key

contributors were Germany, Italy and Czech Republic. The quantum of imports

has also increased due to several FTAs and other trade agreements signed by

the Government.

Capacity Addition: The auto component industry added capacity

in the range of USD 2 -2.25 billion in 2010-11 in several green-field as well as

expansion projects. The cumulative investment (gross-block) in the auto

component sector in India over the last five years stood at over USD 6.5 billion.

The industry is expected to add at least another similar number in capacity

addition 2011-12.

Potential / opportunities:



There is a huge potential in the automobile in Karnataka. The

component industry caters to OEMs (all kinds of automobiles such as trucks,

cars, SUVs, LCVs, buses, two-wheelers, and tractors) and exports.

With major international OEMs having manufacturing facilities in

Karnataka, supply to them from within the country and this region in particular,

has given the sector a huge impetus. Components are also being supplied across

India to other OEMs from Karnataka. There is a potential to get into the global

supply chain of international OEMs and a subsequent direct export to the after

market and other OEMs globally.

Sl.N

o

Sector No. of

Units

Establishe

d

Investme

nt in Rs.

Cr.

Employme

nt in

Numbers

1. Small

Scale

Industrie

s

93,845 3008.78 4,44,259

2. Medium

Scale

Industrie

s

194 2499.96 45,703

3. Large &

Mega

Industrie

s

21 8682.62 13,331



CHAPTER-III

COMPANY PROFILE



Company Name: DIVGI INDUSTRIES PRIVATE LIMITED

Registration no.: MY-NK-255

Founder: late shree R.N. Divgi

Address: Divgi industry

Sahyadri colony

Sirsi (U.K)-581902

Status: Domestic Company

Nature of business: Ancillary unit of manufacturing spare parts

Type of industry: medium scale industry

Total area: 27 acres

Building area: 1000 meters

Directors: Mr. Jitendra .B. Divgi

Mr. Hirendra .B. Divgi

Mr. Bharat.B. Divgi

Total no. of workers: 92

Total no. of labors: 68



Assets of company:

1. Tools

2. Mobile/ telephone

3. Machinery

4. Electrical fitting

5. Computer

6. Furniture

7. Air compressor

8. Camera

9. Fax machine

10.Xerox machine

Total type of machinery: 26

Total no of machinery: 54

Average job doing per day: 5000 jobs

Water used per day: 2000 liters

Coolant oil used per month: 50 liters

Fuel (diesel) per month: 100 liters



Infrastructure:

The company has acquires building and machinery on an

annual lease from DWPL. It has vast area with 27 acres of land in

which the built up area is 6501 square meters.

The company has acquired infrastructure resources as bellow:

1. Adequate building and amenities.

2. Manufacturing and measuring equipment necessary to relies and

supply

3. Conforming product.

4. The maintenances of machines is conducted through

preventive and

5. Predictive maintenance.

6. Support services such as an adequate communication and

transport facilities

7. Are available.

8. During management review meet ,realization plain , the need of

additional infrastructure requirement as necessary are discussed and

Further actions are taken.



Organization chart of DIPL


Managing director

Assistant manager

MDTStore department

Account department

Purchase department

HR department

MR department

QA head

QA inspector

Cell supervisor

Operator Helper

Maintenance

Assistance

Assistanc


History of the industry

It was corporate in the year 2000 but its commercial transact

was started in the year April 2003 by acquiring assets like building, plant and

machinery from Divgi Metal Wares Pvt. Ltd. It is certified with ISO/TS-16949

quality system in the year 2005.

Nature of business

DIPL is an ISO/TS-16949 quality certificate company since 4th oct.2005.

it is registered under registration of companies at Bangalore. Their main banker

is Indian overseas bank. DIVGI WARNER PRIVATE LIMITED is the main

customer of DIVGI INDUSTRIES PRIVATE LIMITED. The Business carried

on by a company is manufacturing of components required for assembly of

transfer case and auto locking hubs.

Brief history of the company

1995: JV formation between divgi metal wares, India and borg Warner torq

transfer system, USA established in pune.

1997: first transfer case developed for TATA motors.

1998: transfer case developed for Mahindra; new production facility at sirsi.

1999: commenced exports with the automatic locking Hub for US after

markets.

2000: pune plant archives QS 9000 certification.

2001: transfer case development for Chinese OEM’s.



2002: sirsi plant archives QS 9000 certification

2003: commenced business with Borg warner, senesce

2004: increased value added sourcing initiative from India to Borg Warner

locations takes off.

2005: both facilities achieve TS/16949 CERTIFICATION transfer case proto

type successfully validated for ford Mazda business in Thailand beginning

2006.

2007: improve the products and production different ranges of products.

2008: the company had applied for the certification of EMS (environment

management system) 1400 and healthy safty 18000.

2009: won chairman’s products innovation award.

2010: Add 2 nos of New CNC Machine in Machine shop.

2011: Best Supplier Award.

2012: Synchro Product Developed.

VISION:

To be catalytic and innovative organization in the society that

supplies goods and services that are of superior value to those who

use them, create jobs that provide meaning for those who do them and

offer our talents and wealth to help and reward all who invest in us

their time, money and trust.



MISSION:

DIPL is to assist their customer seek new frontiers of

value for the continuously evolving needs of a globalization, market

place in so doing ,they seek to bring unique distinctive and superior

value to those who use their production and services. They seek to

provide their customers a continuous source of innovation by

anticipating change and shaping it to our purpose.

QUALITY POLICY:

At DIVGI they endeavor to perceive excellence in all

spares of their business activity through a process of continuous

improvement they see world class quality in their products and

services to consistently meet or exceed their customers’

expectations and achieve leadership in the market they serve. They

committed to a high standard of motivation competency and

innovation in their people who they believe on essential to the pursuit

of excellence.

GOALS:

To become India’s permanent and preferred technology

increate based solution provide in automotive transmission and power

train application for on and off highway usage to achieve world class

standard in all spares of their business activities.



OBJECTIVES:

1. To manufacture, process, treat, buy, sell, import, export, exchange

after improve manipulate report.

2. To carry on the business of engineers, contractors, builders,

filters, founders, wire drawers etc…

3. To own, run, manage and carry on the business of workshop.

4. To carry on the business as technical advisers, consultants for any

other person or person interned in or carrying or any of the business,

as similar to or connected with the objects of the company for

such terms and conditions as are beneficial to the company.

ORGANISATIONAL PURPOSE:

1. To pursue excellence in all spheres of our business activity through a

process of continual improvement.

2. To produce detect and hassle free quality products and services to meet

or exceed expectations.

3. To attain market leadership.

4. Commitment of high standards of motivation and

5. Competency that is essential to the pursuit of excellence.



PRODUCT PROFILE

The company manufactures mainly the following spare parts of

automobile industries.

1. 4 W D technology and products.

2. Manual transmission technology and products.

3. Synchronizer technology and products.

The company also manufactures the spare components required by

a transfer case. The raw-materials required to manufacture these components

are procured from Bhosari, Pune.

Transfer Case:

They are used in 4*4 vehicles. It includes several items

Made up of steel.

Shafts:

1. Upper output shaft

2. Lower output shaft

Yokes:

a. They are classified as single chorden and double chorden,

b. Those are supplied to Mahindra &Tata Motors. Also

c. Exported to Borg Warner Torq Transfer Systems.



Front Adaptor:

It is an item made up of aluminum.

Gear:

These items include:

1. San gear 4426/1350

2. Sprocket drive

3. Sprocket driven

4. Pinion Gear

5. 1st 2nd 3rd 4th gear

6. CF - 006

7. NGT – 530

Functions of Transfer Case-

1. To convert 2*2 drive into 4*4 drive.

2. To amplify Torque.

Flange Cell:

In this cell, different kinds of flanges are manufacturing using CNC

machines. Here some of those are companion flange 006, companion flange 030

etc…….

In this cell, there are different machines those are CNC turning

machine, broaching machine, drilling machine, punching machine etc…The



proper coolants are always used for reducing the tool wear because in the

cutting zone, high temperature is producing.

Shaft Cell:

In this cell, manufacturing shaft which is used in the transfer case. In

the shaft cell, we saw different types machines, those are CNC machines, VM

machine, deep hole drilling machine, conventional lathe, thread rolling machine

etc…..

PROBLEMS:

Of set problems

Tool breaking

Power problem

Rough surface

Usage of unsuitable oils and coolants

Improper holding of the job

Fricton and tool wear.



Shafts:

Gear:



Companion Flange:

Yokes:



CHAPTER-IV

Title of the study:- “A Study on organization and management with

reference to Divgi Industries Private Ltd. SIRSI.”

DEPARTMENTAL STUDY OF DIVGI INDUSTRIES

A department refers to the process of grouping activities into

departments. Division of labor creates specialists who need coordination. This

coordination is facilitated by grouping specialists together in departments .A

department is a part of a larger organization with a specific responsibility. For

the division of organizations into departments, see departmentalization.

The term "department", in other contexts, means an

administrative sub-division of a larger organization. The Department of

Organization's research and teaching are based on the managerial and

organizational processes in private, public, voluntary and other organizations.

Our goal is to create and disseminate new knowledge about organizational

processes that are applicable and that may inspire business executives and

others to work with new organizational structures.

1. Purchase department

2. Stores department

3. Manufacturing department

4. Human resource department

5. Quality department

6. Computer aided design department

7. Finance department

8. Maintenance department



PURCHASE DEPARTMENT:

Purchase function covers all activities related to

procurement of raw materials and other materials of the

company. The purchase function is to interact with planning,

stores, production, and quality control and finance department

whenever necessary. In charge of purchase department is responsible

for all the activities related to the procurement of materials

in the company.

Functions:

1. Evaluate the suppliers

2. Prepare a list of evaluated suppliers who meet the

company requirements and update it if the new supplier

is added.

3. Receives the purchase requisition from the stores.

4. Identify the supplier, place the enquiry and receive the

quotation from approved suppliers.

5. For purchases bellow Rs. 500/- purchase order may not

be realized. Only if the purchases exceed this amount

P.O is made.

6. In case urgency /emergency material may be purchased

on verbal approval from the C.E.O / director.

7. Prepare and place the purchase order to supplier.

8. Monitor on timely delivery of the materials.

9. Ensure the quantity of materials received; check the

verifications activity to accept the materials.



10.Release the payment to the suppliers.

11.Carry out the supplier rating quarterly to the suppliers.

12.Suggest the supplier to improve in case, supplier rating

does not match to the requirement.

13.In case if customer specifies the supplier, the

department procures the material from customer approved

source only.

14.For any materials purchased in an emergency purchase

receipt P.O shall be made within the working days

supplier rating is done once in three months.

15.Prepare the list of supplier who meets the company requirement.

16.Receive the purchase requirement from the store.

17.Identify the supplier place the enquiry& received the qualitative item

from the approved supplier Prepare & plan the purchase order to the

supplier

18.Monitor timely delivery of the materials.

19.Ensure the quality of material

20.Release to the payment to the supplier.

Criteria for selection of materials:

1. Easy availability

2. Prompt delivery

3. Competitive price

4. Consistent quality.



STORES DEPARTMENT:

The main function of stores department is to

consumables, accessories and issues the same to the

production department on the receipts of requirement slip.

The stores department follows FIFO system. This business

process procures raw material / products / consumables as per

procurement plan based on production requirement schedule. They also

procure indirect parts / products / consumables or services needed for all

other processes. This business process receives and preserves the raw

material till it is consumed during manufacturing.

STRUCTURE OF STORES DEPARTMENT:


Managing director

MR

Stores in charge

Assistants


The two types of items under the stores department are:

a. Billable items

b. Non- billable items

a. Billable items

Billable items are those, which are procured from

outside sources. They include machine spares, gear parts, tool –

holders, cutting tools, grinding mills and consumables.

b. Non- billable items

Non- billable items are the items, which are procured

Bhosari (Pune). They include forging (shaft, flange), gear blanks,

sun gear, ring gear, hub reduction, sprocket drive, sprocket

driven, hub sleeve etc.

The Key performance indicator of stores departments is Material Yield

stores are divided into:

1. Forgings

2. Consumables

FORGINGS:

In case of forgings following procedure is to be followed:

On the receipt of raw materials from DWPL, material is

placed in proper bin and confirms the received quality against

delivery chalan. Enter the received quantity GRR (goods received

register) and stock register. If any short or excess material is found,



then it is mentioned in GRR and inform to the customer

immediately.

Measure the forging weight as per sampling page. Enter into GRR.

Issue bin card and ensure bin cards are attached to the respective

bins.

Ensure the forgings are properly stored in bins. If any empty bins

are not available, place the forgings on card board sheets, cover

plastic and attached the bin card properly.

Take clearance from the quality department for incoming goods

inspection. Issue forgings / raw materials for production by strictly following

FIFO method.

When incoming forgings are released for urgent production, they

are positively identified and recorded to permit recall in the event

of nonconformance to specified requirements.

On consumption of GRR prepare delivery chalan.

Ensure materials being dispatched to the customers.

Prepare a consolidated statement of the total quantities dispatched,

total rejection and total forgings defect quantities and then submit

a copy to the accounts department.

Monitor and measure the materials yield % at the end of every

month. Stock and product verification is conducted once in three

months.Maintains the department, record properly.



CONSUMABLES:

For any requirements for concerned department, conforms inventory,

counter sign purchase receipt if material is to be purchased. On

the receipt of consumables make GRR and then make the

clearance. Consumables are kept in storage area under lock and

key.

Machinery spares are stored in steel cupboards under lock

and key with proper identification.



MANUFACTURING DEPARTMENT:

This business process manufactures product as per production

orders released by planning. They follow the entire standard, i.e. quality and

process to realize the products. They assist manufacturing engineering to

establish the new manufacturing process. They develop various job/ work

instructions to guide operations to perform better and better. They plan and

accomplish manufacturing of products so that customer requirements are

fulfilled. This business process ensures maintenance of manufacturing

fixtures and tooling required for product realization.

DIPL manufactures different types of yokes, flanges,

shafts and sun gears for gear box assembly.The different

processes undertaken for manufacturing. This business process receives

customer schedule details from marketing considering inventories at raw

material, work-in-progress and finished goods, they prepare production plan

is a base for manufacturing process. This business process also controls

outsourcing of products/ processes. This process strives for 100% on time

delivery performance of company.

Responsibilities and Authorities of Production, Planning and

control:

1. Prepare dispatch plans / schedules based on scheduled requirements.

2. To co-operate with Bhosari ( Pune ) for the following:

a) Raw materials

b) Tooling / insert s

c) Mobilizing empty trays for material handling

d) Preparing dispatch schedule



Raw materials


Receive raw materials from the customer

Issue the full bin Qty to production its per FIFO system

And issue bin cards and ensures bin card is attached to

the respective bins

Receiving DC from customer and enter in the bin and stock

register respectively

Covered and selected ensure scaled bins are not tampered

Keep received of daily production status of finished materials and

defective materials

Daily dispatch quantity as per issue slips and defective materials make

separate DC with

End of every month associated statement of production QTU of

components dispatched LRN Qty and foraging defective qualities submit to

DIPL A/c and copy to customer stores

Customer controlled area defective material with LRN and DC to be gives

to customer stores


Process flow chart


RECEIVE FORGINGS

ROUGH TURN 1ST SIDE

FINISH TURN 2ND SIDE OPERATION

OPERATION BROACHING

OPERATION “D” PUNCHING

OPERATION HOBBING

FINAL INSPECTION

OPERATION SHAVINGOPERATION DEBURRING

OPERATION EXTERNAL TEETH

ROUGH TURN 2ND SIDE OPERATION

FINISH TURN 1ST SIDE OPERATION

DISPATCH TO DWPL SIRSI


CONSUMABLES


Receive consumables from the supplier

RECEIVE MATERIAL TO BE KEPT IN DENTIFIED PLACE WITH PROPER PRESERVATION

Prepare GRR ENTER IN THE GRR REGISTERANDSTOCK REGISTER RESPECTIVELV

ISSUE THE MATERIALS AGAINST ISSUE SLIP

MAINTAIN STOCK PROPERLY REGISTER LETTER TO BE RECEIVED FOR THE REQUIREMENT BY THE DEPT HOD

SUBMIT REGISTRATION LETTER TO THE PURCHASE DEPT

CLEARED GRR TOTAL ACCOUNT SUBMIT TO THE ACCOUNT DEPT


TURNING:

ROUGH TURNING:

This is an operation in which maximum materials is being

turned by using different types of cutting tools, maintaining the

stock 0.5 -0.7 MM materials at all surfaces for finish turning.

FINISH TURNING:

In this operation finish turning of the work piece is being

carried out by using different types of cutting tools. Required

surface finish, chamfers, grooves are generated in this process.

BROUCHING:

It is an operation in which the required spines are being

generated by using a special tool called broach. In this operation

broach is in the work piece with the help of byduaulic pressure

at required feed rate.

HOBBING:

Gear teeth are generated in this operation by using

special tool called hobbing. In this process the cutter rotates at one

along with the work piece at advance into the cutter at required

depth and then the cutter moves upward or downward as per the

setting.



SHAVING:

Shaving is an operation in which gear teethes is done

by, removing 0.1 – 0.22MM depth of cut by using a tool called

shaving cutter. In this operation the cutter rotates at one axis and

work piece is advanced into the cutter.

MILLING:

Milling is an operation in which forms, slots, key words

are generated by using special tool called milling cutter. In this

operation cutter rotates at one axis and the work piece advances

towards the cutter. Coolant oil is used to eliminate the heat

generated during turning operations. On an average 5000 jobs are

done per day. Being pushed Issue consumables on receiving materials

receipt per day.Maintains inventory level properly. Inventory management

system is good. In the history of DIPL work stoppage has not

taken place due to raw materials storage.

Responsibility and authority of manufacturing

1. To take the work in progress statement for production material with in

the plant

2. To negotiate and finalize rate for scrap and to take approval from

operation.

3. Prepare dispatch plan/ schedules based on scheduled requirements.

4. Organizing dispatch co ordination with individual engineer for

component for final inspection and further dispatch.



HUMAN RESOURCE DEPARTMENT:

The principle component of an organization is its hr

or people at work. It is which is of paramount importance in the

success of an organization.

It is the phase of management which deals with the

effective control and use of man power as distinguish from other

sources of power. This department is managed by the HRD of the

department. He is responsible for the over all functioning of the

department.

OBJECTIVES

1. To recruit the candidate to the organization

2. To select best among them

3. To maintain all the records by employees related to attainder leave,

training

4. To maintain a proper infraction between the employees

5. To check the employees performance of the end of the working

year

6. To apprise the performance of the employees

7. To motivate the employees to get maximum output

8. To give the proper training to the employee.

Induction Training Programme

At Divgi Warner Private Limited four days induction

training programme is conducted for all new employees. All new

employees must undergo an induction training programme. The



purpose of induction training programme is to ensure that the new

employee gets familiar with the company’s day -to-day operations.

Cleanliness of Premises:

HOD (HR) ensures that premises are neat & clean.

Any material available is neatly placed & duly identified. Any

repairs to building & infrastructure required to fulfill product &

manufacturing process needs are timely carried out. Any material is

promptly removed. Every month, any deterioration in material is

brought to notice of CEO for further actions.

Functions:

1. To organize necessary training programs.

2. Assist HOD for human resource acquisition.

3. Maintain all statutory requirements on time, as given out in

Gazette notification and government orders from time to

time. This also involves compliance and renewal of various

licenses under Factories Act,

4. Minimum Wages Act, Payment of Wages Act, Workman

Compensation Act, Gravity Act etc…..

5. Maintain records of employees including attendance, leave

and training records.

6. To collect training needs through skill matrix from various

functions and prepare training plan.

7. Up keep of premises.

8. Arranging and up keeping of company vehicles.



9. Providing and maintaining a conducive atmosphere for

work and enhances performance of employees.

10.Conduct programs which helps in motivating the employees.

Induction training program :

At DIPL 2 Days induction training program is to ensure

that the new employee gets familiar with day to day

operations.

Employee training :

1. Basic job training.

2. General training

3. Further training.

Basic job training:

All employees will be trained in the operation of

machinery and equipment specific to their function. Before using

such machines or equipments, employees are to be informed of

the hazard that is likely to occur.

General training:

All employees will be briefed and received training in

the following:

1. Accident prevention in the operation of machinery and

equipment.

2. Accident reporting.



3. Good house keeping.

4. Company safe

5. Responsibilities under the current safety, health and

environment legislation.

Further training:

1. On side emergency plan

2. Emergency skill.

3. Safety, health and environment audit.

Recruitment policy in DIPL:

1. Need based.

2. Management view regarding further requirement.

Need based recruitment :

It is done by advertising in the news paper or by

selecting candidates on the basis merit if he /she are known to

any DIPL’S employees. Selecting candidates is based on their

experience, qualification and performance in the interview. Candidates

are interviewed by the executive based on the qualification of the

candidate.

Management decisions:

Candidates are also recruited by management decision.

Deceased employees dependent are also recruited as a special

case mainly keeping in mind the future developments.



While recruitment for the post of operator, cleaner, driver, and

his experience, age and physical fitness for the post is considered.

Management representative:

1. Maintained in accordance with ISOL TS 16949 requirements.

2. Authorized for issue and withdrawal of quality system

documents.

3. Conducting management reviews.

4. To maintain the departmental record.

Customer representative:

1. For interacting with customer on special characteristics and

communicating the details of interaction to the concerned

personal of DIPL is also responsible to collect the customers

engineering drawings.

2. Interaction with customer for delivery schedules and on time

delivery of products to the customer.

3. Resolving customer results.

The company is achieving through key performance

indicators (KPI’S). Top management has defined measurable KPI’S

for each business process which are also quality objectives for the

company. Each business process

Owner utilizes multi disciplinary action approach to

measure and analyze the data and information to arrive at a

action plan which is implemented and reviewed every month.



This monthly review also serves as one activity to

improve and maintain internal communication. These key performance

indicators are for overall functioning of business processes. Quality

objectives are displayed within the organization through KPI’S.

Selection process on DIPL

It is a long process in DIPL commencing from the preliminary

interview of the applicant & ends with the contract of employment selection in

DIPL is centralized & is handled by the personnel department

Table 4.1

NO OF EMPLOYES

SL.NO

.

EMPLOYEES NO.OF

EMPLOYE

S

PERCENT

AGE

1 Staff 07 07.60

2 Technical Staff 11 11.95

3 Operator 68 73.92

4 Helper 06 06.53

Total 92 100.00



helperoperator

stafftechnical staff

01020304050607080

6.53

73.92

7.6 11.95

Total

Total

Interpretation:-

This diagram indicates that no. of employees working in DIPL. It can be

divided into 4 types they are staff (7), tech. staff (11), operators (68) and

helpers (6). Operators are more than other staff.

Table 4.2

LABOUR CLASSIFICATION

LABOUR CLASSIFICATION NO. OF LABOUR PERCENTAGE

Skilled labor 20 29.41

Un skilled labour 11 16.17

Semi skilled labour 37 54.42

Total 68



semi-skilledskilled

un skilled

0

10

20

30

40

50

60 54.42

29.41

16.17

Total

Total

Interpretation:-

In DIPL, the labours are classified on the basis of their

skills. They are skilled, unskilled and semi-skilled. The semi-skilled

labours are more as compare to skilled and unskilled labours.

Table 4.3

SALARY ALLOWNCE


EMPLOYEES SALARY PER MONTH SALARY PER DAYS

IN RS.

Highly skilled 5770 221.92

Skilled 5268 202.61

Semi- skilled 5110 196.53

Un skilled 5050 194.23


Table 4.4

Classification of labour on the basis of permanent, trainees, contract base:

8.7

38.0453.26

Total

contract basepermanenttrainees

INTERPRETATION:-


LABORS NO. OF LABORS PERCENTAGE

Permanent 35 38.04

Trainees 49 53.26

Contract base 08 8.70

TOTAL 92 100.00


This chart shows that no. Of labours working in DIPL. The

DIPL is recruiting the workers on the basis of contract base. This also

provides on the job training to the trainees.

Table 4.5

LEAVE TABLE

Interpretation:-

This table indicates that the leave of the workers in DIPL. Under this

table the employees earned 15 days of leave per year. Causal leaves are 10

days per year, sick leave are 5 days per year.

Performance Appraisal

Once the employee is confirmed he shall be considered for an

annual appraisal every year effective 1st of January. Appraisal will be

based on his overall performance including attendance; sincerity to meet

his pre agreed key performance areas & objectives. At the time of

appraisal employee is required to give certain KPA’s (Key performance

areas) for next year with specific targets. It is expected the employee


Earned leave 15 days for

year

Causal leave 10 days per

year

Sick leave 5 days per

year


shall monitor his KPA’s. Depending on performance of KPA’s

employee will be considered for annual increments.

Fringe benefits

1. DIPL provides perquisites like canteen, lunch rooms, medical

services etc

2. Premium payment

3. Payment for time not worker. Holidays, vacations period & rest

period etc

4. Miscellaneous benefits

5. Provident fund of 12% ( basic + DA) repaid

6. Bonus is paid according to bonus act 1965 usually 8.33% pa is

paid

FINANCE DEPARTMENT:

Finance is an essential component of the business

to maintain its operations effectively. This department is

concerned with day to day activities like purchases, sales, salary

etc and proper management and maintenance of accounts of

concerned year.

BANKER OF THE COMPANY

1. Indian overseas bank

2. Sirsi urban souhard co-operative bank

MAIN SOURCE



1. Job work

2. Sale of scrap

Functions:

1. Day to day bank transactions

2. Recovery

3. Bills passing and payments

4. Recovering all transactions in books of accounts.

5. Preparation of cash of low statement budget.

6. Providing various types of management information system

reports required by management from time to time.

7. Carryout auditing.

8. Cash handling –petty cash handlings

9. Bank transactions – cash withdrawals, maintaining record of bank

balance, details of check payments.

10.Preparation of statements for funds requirements of the month including

statutory and supplier payments.

11.Recording of all the transactions in the books of accounts

12.Preparation of cash flow statement budget.

DIPL maintaining books of accounts:

1. Purchase register

2. Sales register

3. Bank register

4. Journal register

5. Cash book



6. Day book

7. Ledger and vouchers

Implementation of annual budget

Every year in 1st week of January each department has to provide

their debtors of budget to account department. Finance department put up all

department annual budgets to managing directors for review and final approval

is taken.

HR department budget and expenses following heads;

1. Training

2. Housekeeping

3. Vehicle maintenance

4. Vehicle fuel

5. Staff welfare

6. Telecommunication

7. Other expenses

Gross turnover 18, 468, 914, 48

Net profit 3,330, 094, 60

Secured loans 823, 296, 00

Unsecured loans 6192,711.00

Authorized capital

100000 equity shares of rupees 100 each 1, 00, 00,000

Issued, subscribed & paid up



49,530 equity shares of rupees 100 each 49,53,0000

This department is vital to all other department as it

ensure smooth functioning of the process. The company has a

very good policy in hand for maintenance of machinery. Records are

maintained with raga to every machinery that is put to use .Obsolete

lagging machineries are replaced properly.

The Maintenance Department is concerned with the

Maintenance of machines utilities like air compressor, diesel generator set,

and IT equipments like computer fax machines, scanner and printers.

Organization chart of maintenance department


Assistant manager


There are three type of Maintenance:

a. Breakdown Maintenance

b. Preventive Maintenance

c. Predictive Maintenance

a) . Breakdown Maintenance:

In the case of breakdown maintenance the machines are attended only

when the process has stopped or after the breakdown.

b). Preventive Maintenance


Supervisor Supervisor

Engineer-2Engineer -1

Contract engineer Contract engineer

Filter contract


In the case of preventive maintenance machines are maintained in such

a way to prevent occurrence by regular inspection, cleaning, greasing etc, as

the case may be.

c). Predictive Maintenance

Predictive Maintenance is where the life of each spare part is

determined and at the end of the period spare part is replaced with new one

whether it is damaged or not.

Maintenance schedule are prepared on monthly, quarterly, semi-

quarterly and yearly basis.

Functions of Maintenance Department:

1. To identify key process equipments

2. To rectify day- to –day breakdown of the equipments

3. To plan and procure the spare parts equipments Maintenance

4. To maintain and update all records related to breakdown/ calibration/

installation and commissioning / retrofitting/ spare parts etc.

5. Provide adequate support to organization by keeping the equipments

under proper working condition, to support qualitative and cost effective

manufacturing of products.

6. Design and implement an effective preventive and predictive

maintenance system so as to keep high uptime for equipment



7. Recondition old equipments to effectively maintain machine capability

and retrofit the new technology to enable more effective capital

deployment for minimizing unscheduled downtime and maintain

machine capability.

Day to day maintenance of machinery.

Purchasing tools, accessories, lubricating oil etc required for

maintenance.

Keep the machinery in good conditions on a continuous basis.

Provide repairs for machinery.

QUALITY SYSTEM DEPARTMENT

The aim of every organization is to produce best quality

product. To achieve this goal it takes many measures before the

production starts and continues till it reaches the customer. Quality

control is an on going process.

Organization system of quality system department


Manager


Functions:

1. Calibrates the monitoring and measuring devices at different

frequencies.

2. Records the details of calibration.

3. Complies the calibration certificate and protects them.

4. Errors of the instrument are made known to the users.

5. Issue instruments and gauges to the users.

6. Details of setup approval are recorded.

7. Check the coolant concentration.

8. Verifies the incoming / in process /finished items against control

plans.

9. Records the details of inspection report.

10.Carryout dock audit.

11.Carryout the measurement system.

12.Record the details of non conforming products.

13.Defines the method accepting the incoming products.


MR

Head–quality system

Senior engineer Q.A co coordinator Q.M.S


14.Is responsible and authorized to prepare the quality plan

for finished products.

15.Is responsible and authorized to approve and release the

finished products for dispatch to the customer. Responsibility

of quality assurance offer:

The quality assurance department is especially for

financial approval. It is responsible for verification of products.

After the approval from this department only the final products are

supplied to customers. The company is certified with ISO / TS 16949

quality system guidelines and improves its effectiveness.

Quality assurance inspectors:

1. For maintaining quality records

2. Is responsible for incoming / in process / final inspection as per

control plans.

Why go for TS-16949?

TS-16949 is a license for doing business with the customers and

implementation of TS-16949 develops a common understating of quality

related expectations, methods and practices with the customers. The common

understanding and assurance it brings leads to:

1. Simplifying many different detailed decisions and work methods in

managing and continually improving quality

2. Motivating and empowering people to take action to improve

effectiveness and efficiency of their work processes in disciplined way.



3. Co-coordinating the actions of different people in an efficient way to

give customers a defect and hassle free experience.

TS-16949 standard belief:

TS-16949 is a quality management system that helps us

continually improve the effectiveness and efficiency of our processes for

products and services to our customers by emphasizing.

1. Defect prevention

2. Reduction in variation and waste in our supply chain.

It consists of four Quality Management Systems:

a) ISO-9001

b) ISO-9002

c) ISO-9003

d) ISO-9004

ISO-9001 is given to those companies that will do designing as well as

manufacturing, marketing and service.

ISO-9002 is given to those companies that will do only manufacturing,

marketing and service.

ISO-9003 is given to those companies for servicing, calibration and testing.

ISO-9004 is given only for service. It is vocabulary (guidelines for above

systems).



After 1994 a new system was incorporated QS-9000. It consists of two

sections.

Section I includes basic segments of ISO series and

Section II is customer specific requirements

QS- 9000 is basically formed the big 3’s viz., General Motors, Chrysler,

Ford and other manufactures.

Later in 2000 they formed TS-16949 and the latest updating is of version TS-

16949, 2002 the fund

Metals for this system is ISO- 9001, 2000 and ISO-9004, 2000 metals for this

system is ISO- 9001, 2000 and ISO-9004, 2000

COMPUTER ADDED DESIGN IN DIPL

In DIPL sirsi there is a separate selection for computer aided

design(CAD) here the computer is use to designing and manufacture a product

where product specification are refined by continuous improvement in

successive stage based on designer’s experience, computers, sketches and

drawings.

USE OF CAD IN DIPL

1. Computational and graphical software to enhance design productivity.



2. The geometry of the component can be graphically displayed and

manipulated on video monitions.

3. Alternative designs can be worked out and evaluated fast.

4. Some of the time and expenses of physical mock-ups, models and proto

types are eliminated.

5. By accessing the data base, an already existing design may be found

eliminating duplicate design efforts.

6. Once a design is found acceptable, it is started in the data base and can be

transmitted electronically to manufacturing, engineering, purchasing

sections.

Reason for limited of marketing area

1. With in the group of Divgi Warner

2. Under lease.

3. Building and machinery on lease.

Reason for limited profit

1. Limited marketing area. 2. It is a sister concern unit

MANAGEMENT STUDY OF DIPL

A person who holds a management position inside an organization

is required to think strategically and conceptually in order to achieve

organizational goals. This lesson will describe the four functions of

management and how they relate to organizational success.

Top Management:



The BOARD of the company is Manager for the quality management system.

He is responsible for the over all growth of the company, where as day

operation are looked upon by plant head.

A team of top management assesses these skills

through a competency matrix & training needs are recommended by the

respective section heads in order to improve the weak areas. For top

management, wherever necessary the company employs outside agencies to

assess the skills & competency levels.

. He is overall overseeing the overall growth of the

company whereas day – to – day operations are looked upon by Plant Head.

The staff of DIPL – Top, middle and lower management have nurtured

following qualification thereby being able to meet the expectations of their

valuable customers.

Quality: DIPL staff maintains professional attitude among all

employees.

Line & Staff Relationship:

Line refers to those positions of an organization, which have

responsibility, authority and is accountable for accomplishment of primary

objectives. The relationship existing between two managers due to

delegations of authority and responsibility and giving or receiving

instructions or orders is called line relationship. Line authority represents

uninterrupted series of authority and responsibility delegating down the

management hierarchy.



DIPL has adopted Line & Staff organizational structure that offers

individual the opportunity to meaningfully learn & participate across diverse

business processes.

The Managing Director of this company is CEO for the Quality

Management System. He is overall in-charge overseeing the overall growth

of the company, whereas plant heads look after day -to -day activities.

The business process heads, as shown in overall organization chart, are

treated as top management to establish, implement, maintain & continually

improve effectiveness of Quality management to establish, implement,

maintain & continually improve effectiveness of Quality Management

System. The Manager follows the Board. The team leaders of various

departments report to the Manager.

FUNCTIONS OF A MANAGEMENT

Management performs different functions. They are mentioned are as

follows.

PLANNING

Planning is one of the functions which determine well in advance what is

to be done. It is a purpose of deciding business objectives and preparing the

methods of attaining those objectives. Planning is an intellectual process.



Engineering department is responsible for designing the product / part as

per the customer requirement. The customer requirements are translated into

the product realization plan through APQP (Advanced Product Quality

Planning) steps. Product leader convinces multi disciplinary actions

consisting of various business processes who act as a board of decisions for

design activity planning. This business process ensures that company

confirms to all the agreed customer requirements.

ORGANIZING

Organization refers to structure which result from identifying and

grouping of work, defining and delegating responsibility and authority and

establishing relationships.

Organization Purpose:

1. To pursue excellence in all spheres of our business activity through a

process of continual improvement

2. To produce detect – and hassle free quality products & services to meet

or exceed customer expectations.

3. To attain leadership in the market.

4. Commitment to high standards of motivation & competency that is

essential to the persuit of excellence.

STAFFING

Staffing is an important function of management and a part of the

organizing function. The manger discovers the right person for each job in

staffing. Staffing fixes manager there is enough man power available to fill the

various positions in the staffing also involves introductions of suitable systems



of compensations training, promotion and retirement of subordinates working in

the office.

The people / human resource management processes use to

develop mangers socialization processes, ways of shaping basic values of

management cadre, ways of introducing young recruits to the Co., ways of

helping to manage the career of employees.

DIRECTING

Directing refers to giving explanation by the manager to the staff

regarding what they have to do and help to do it the best of their ability. It

involves three sub functions, namely, communication, leadership and

motivation.

Communication is the process of passing information from one person

to another. Leader is the process of which manager guides and influences the

work of his subordinates. Motivation means arousing a desire in the minds of

workers to give their best to the enterprise. It is an act of inspiring workers. As

directing is connected with influencing, guiding, supervising and motivating the

subordinates in their jobs, it is an important function of manager.

CO-ORDINATING

In any organization, it is common that different people have different

ideas regarding attainment of goals. Hence, there is a need for co-ordination of

activities. Thus co-ordination is the balancing and keeping the team together by

allocating seeable works to the members and see that the members with

harmony performs the works. Some of the important requisites for effective co-

ordination are principles, direct contact, early start, continuity, dynamism, clear



cut objectives, clear definition of authority and responsibility, simplified

organization, effective communication, leadership and supervision.

Basis for specialization & coordination influenced primarily

by strategy & by organization size and diversity.

CONTROLLING

In order to ensure that the work is done as per the plans lay down.

Controlling is very much important. Controlling functions of management

involves three elements.

I) Establishing standard of performance for work.

II) Comparing the current performance with the established standards.

III) Correcting those works which are against those standards.

This business process receives customer schedule details from

marketing considering inventories at raw material, work-in-progress and

finished goods, they prepare production plan is a base for manufacturing

process. This business process also controls outsourcing of products/

processes. This process strives for 100% on time delivery performance of

company.

Responsibilities and Authorities of control:

1. Prepare dispatch plans / schedules based on scheduled requirements.

2. To-corporate with Bhosari ( Pune ) for the following:

a. Raw materials

b. Tooling / insert s

c. Mobilizing empty trays for material handling

d. Preparing dispatch schedule



CHAPTER-V

SUMMARY, FINDINGS AND SUGGESTION

SUMMARY



Industrial organization is the field of economics that builds on

the theory of the firm in examining the structure of, and boundaries between,

firms and markets.

The subject has been described as concerned with markets

that "cannot easily be analyzed using the standard textbook competitive model."

Industrial organization adds to the perfectly competitive model real-world

frictions such as transaction costs, limited information, and barriers to entry of

new firms that may be associated with imperfect competition. It analyzes

determinants of firm and market organization and behavior as between

competition and monopoly, including from government actions.

There are different approaches to the subject. One is

descriptive in providing an overview of industrial organization, such as

measures of competition and the size-concentration of firms in an industry. A

second uses microeconomic models to explain internal firm organization and

market strategy. As to strategic firm interaction, non-cooperative game theory

has become the standard unifying method of analysis. A third aspect is oriented

to public policy as to economic regulation and antitrust law.

Methodology of Data Collection

Research methodology is a systematic way for solving any

research problem. It’s a science of analyzing how research is done

scientifically. It studies the various steps that are generally adopted by a

researcher in studying the research problem.

Sources of Data:



There are 2 types of data:

1. Primary Data

2. Secondary Data

Primary Data

The primary data are those which are collected fresh for the first

time and thus happen to be original in character. The primary data collection

involves the collecting of information for the first time by observation,

experimentation, and questionnaire and through interview schedule in the

original form by the researcher himself or his nominees.

Plan of action:

The primary data was collected through discussion with the

manager using the interview schedule. This data was obtained to study the

latest procedures relating to working capital management and cash

management system followed by the company.

Secondary Data

The secondary data are those which have been collected by some

other and which have been processed. Generally speaking secondary data are

information, which have been previously collected by some organization to

satisfy its own need. But the department under reference for an entirely

different reason is using it.

There are two main sources for Secondary Data:



I. Published Data: Data that is already available in books, magazines,

trade journals, newspapers, reports, prepared by research scholar etc.

II. Unpublished Data: This is not published; it can be found in

unpublished biographies, autobiographies, some governmental aspects

and private individual organizations etc.

The Secondary data used in the study are:

a. Annual Report of the company.

b. Published financial reports of the company.

c. Financial records and stores manual of the company.

d. Directors reports, auditors report and other schedules.

Objectives of the study

1. To study the organization and management of divgi industry.

2. To study the different departments of divgi industry.

3. To study the human resource of divgi industry.

SCOPE OF THE STUDY

It is very useful to the entrepreneur to under stand the nature and

working of organization and management and also to adopt innovative methods.

By that to reduce cost of production and to also to improve the quality of the

product and to get maximum benefit.

FINDINGS

1. DIPL is more conscious about there quality maintenance.



2. DIPL satisfy the requirements the ISO/TS- 16949 quality

certification.

3. DIPL is concentrating on implementation of latest technologies in its

operations.

4. There exists a healthy relationship between DIPL and DWPL.

5. DIPL make use of CNC machines largely in its production process.

6. The most employees on DIPL are young and energetic.

7. In DIPL all the employees are green same type of uniform from

operator to administrator level.

GENERAL PROBLEM OF DIPL

1. Machine variation is the main important problem in divgi industries

private limited.

2. Maintenance

3. Man power problem

4. Electricity problem

SUGGESTION

1. DIPL has to concentrate on available market, demand for automobile

component and should not limit its operation only for DWPL.

2. DIPL has to implement more upgraded technologies in its operation to

produce new varieties of auto spares and to increase existing production.

SWOT ANALYSIS

STRENGTHS OF DIPL:



DIPL are committed to customer satisfaction at all levels in the

organization. DIPL has Quality Assurance and QMS departments where in

all the queries, difficulties or any type of assistance required by customer is

taken care. The issues relating to customer complaints, resolutions, corrective

actions etc., suggestions by customers for improvement in processes /

products are discussed on weekly basis and actions are initiated to resolve the

problems.

DIPL provides total transparency in dealing with its customers and are

committed to enhance their capabilities, by providing them with latest

technological advantage and utilizing maximum capacity to meet their

requirements.

They process the knowledge and the technology that is relevant to the

products being designed, manufactured and supplied.

1. Company has On-line communication system, capable to be linked

with customer’s On-line system.

2. Line with QS-TS-16949 certification, which can achieve a good

market for its product at global level.

3. The company has adopted Continual Improvement philosophy,

which helps to achieve greater effectiveness & efficiency in all the

business processes.

4. Customer complaints are systematically handled through team –

oriented problem solving 8 – D methodology for internal as well as

external concerns.

5. There is well- designed automation & workstation near every

machine, which are operator friendly.



6. There is teamwork among the employees in the company.

7. Each process (activity) is measured for effectiveness & efficiency to

meet quality objectives. Competency to adopt new system,

implementation, practice & sustenance.

8. Most of the workforce comprises of well informed, competent

youngsters qualified with diploma or graduation in engineering.

WEAKNESS OF DIPL:

1. DIPL is situated in a remote place or area, which is far away from

metropolitan cities, and it is not connected with national or state

highways.

2. The lack of connectivity with proper roads & highways leads to the

problem of procuring inputs & delivery of outputs.

3. There is transportation problem because Sirsi is a hilly region above sea

level so there is no facility of railways, which is the faster means of

transportation than roadways.

4. The company hires employees on contract basis, which makes rigorous

training essential.

OPPORTUNITIES AT DIPL:

1. There is a scope for making final products instead of component parts

and make it available for profit & loss.

2. There is an opportunity for making future expansion in business by

going for joint ventures & tie-ups with other company’s also.

3. The company provides various employment opportunities to new

graduates & local people of Sirsi.



4. By adopting EMS – ISO 14001, the next aim of the company is to

“Deming Award” of certified by Japanese, which is given for quality

management systems.

5. The vast area of land & space of building can be effectively used for

future expansions.

THREATS OF DIPL:

1. DIPL, Sirsi mainly depends on the parent company i.e. DWPL, Sirsi

and Pune. The parent may change its base of manufacturing for

marketing its products outside India.

2. The major raw material used in the production is steel, presently there is

a huge demand for steel & there is rise in the price of steel for last few

years in India & all over the world. The rise in the input cost will reduce

the margin of the company.

3. There is always a risk of change in Government Policies.

CONCLUSION

1. In present area of business, the organization lends to satisfy the needs of

the customer more effectively than competitors in the way to achieve

high market share and long life.



2. DIPL wants to become an excellence in manufacturing of auto plant ant

at the same time if wants to reach the stages what it is dreaming of for

which the co-ordination from employees and management is necessary.

BIBLIOGRAPHY

BOOKS:-

1) Shubhra Rahul (2007) – Principles of Management- Management-

R.Chand And Company, New Delhi- P.No.36 And 95

2) Arun Kumar and N.Meenakshi – Organizational Study – Organization

Behavior – Vikas Publishing House – p.390



3) P.C. Tripathi& P.N. Reddy – Organizational Study – Principle of

Management, 3rd addition – S.Chand– p.94

4) K. Ashwatappa –(2007)- Organizational Study – Organizational

Behavior, seventh revised – Himalaya Publishing House –p.508

5) A B N Kukarni& AB Kalkundrikar – Organizational Study – Managerial

Economics – R.Chand – p.167

6) C.S.V. Murthy – Organizational Study – Entrepreneurship Development

– Himalaya Publishing House –p. 1.3

7) Jagroop Sing – Organizational Study – Entrepreneurial Development &

Small Enterprise – Kalyani Publishers – p.107

WEBSITE:-

www.google.com

www.wikipedia.com

www.divgi-warner.com


http://www.divgi-warner.com/

http://www.wikipedia.com/


I. EQUITY AND LIABILITIES

1. Shareholder’s fund

a. Share capital

b. Reserves and surplus

c. Money received against share

warrants

2.Share application money pending allotment

3. non current liabilities

a. Long term borrowings

b. Deferred tax liability (net)

c. Other long term liabilities

d. Other long term provisions

4. Current liabilities

e. short term borrowings

f. trade payables

g. other current liabilities

h. short term provisions

4953000.00

(4544933.17)

-

-

7016007.50

-

-

-

-

5167006.05

1787946.50

-

4953000.00

(7875026.77)

-

-

9292881.00

-

-

-

-

2112501.88

1603790.00

-

TOTAL

II. ASSETS

1. Non current assets

a. Fixed assets

i. Tangibles assets

ii. Intangibles assets

iii. Capital work in progress

iv. Intangibles assets under

development

b. Non current investments

c. Deferred tax assets (net)

14379026.88 10087146.11

7256851.00

238090.00

14705.00

5323434.00

238090.00

26366.00



d. Long term loans and advances

e. Other non current assets

2. Current assets

a. Current investments

b. Inventories

c. Trade receivables

d. Cash and cash equitant

e. Short term loan and advances

f. Other current assets significant

accounting policies

TOTAL

333846.00

-

-

4264301.65

2271233.23

14379026

287007.00

3392861.67

819387.44

10087146.11


Documents

DIVGI INDUSTRIES SIRSI