Subject: Ashok Leyland Motors Pvt. Ltd. Business Strategy and Knowledge Management System

Group Members :-1) Mohit Prakash (12118049)2) Sangram Vijay Bhosale (12118070)3) Sourabh Hirau (12118077)4) Udit Kumar (12118084)

Branch: MMED

ASHOK LEYLAND MOTORS PRIVATE

LIMITED

INTRODUCTION Ashok Leyland is

an Indian automobile manufacturing company based in Chennai, India. Founded in 1948, and it is the second largest commercial vehicle manufacturers of commercial vehicles, such as trucks and buses, as well as emergency and military vehicles.

Operating six plants, Ashok Leyland also makes spare parts and engines for industrial and marine applications. It sells about 60,000 vehicles and about 7,000 engines annually. It is the second largest commercial vehicle company in India in the medium and heavy commercial vehicle (M&HCV) segment with a market share of 28% (2007–08).

BASIC INFORMATION Name: Ashok Leyland Motors Private Limited Trade Name: BSE- 500477; NSE- ASHOKLEY Industry: Automotive Founded on: 7th September,1948 Headquarters: Chennai, Tamil Nadu, India Products: Automobiles, Engines, Commercial Vehicles Revenue: $2.1 billion (Rs. 133.59 billion) Net Income: $900 million (Rs. 56.5 billion) Employees: 15812 Subsidiaries: Ennore foundries Limited

Automotive Coaches and Components Limited Gulf-Ashley Motors Limited Ashley Holdings Limited Ashley Investments Limited Ashley Design and Engineering Services (ADES) Avia Ashok Leyland

Ashok Leyland Defence Systems (ALDS) Ashok Leyland Project Services Limited Lanka Ashok Leyland PLC

Website: www.ashokleyland.com

HISTORY Ashok Leyland was founded in 1948 by

Raghunandan Saran, a freedom fighter from Punjab.  Thus Ashok Motors was incorporated in 1948 as a company to assemble and manufacture Austin cars from England.

In 1949, an agreement was reached between Ashok Motors & Leyland, UK and Ashok Motors got sole rights to import, assemble and progressively manufacture Leyland trucks for seven years.

In 1990, Ashok Leyland was First Indian auto company to receive ISO 9002 certification.

In 2007, the Hinduja Group also bought out 51% shares of Ashok Leyland. Today the company is the flagship of the Hinduja Group.

KEY PEOPLE

R. SeshasayeeExecutive

Vice- Chairman

Dr. V. SumantranVice Chairman

Vinod K DasariManaging Director

Raghunandan SaranFounder of Ashok Leyland

PRODUCTS

City Transit Bus

 Inter-City Deluxe Bus 

Titan Double

Decker bus 

Ecomet 912

Tusker Twin Axle

Lorry 

 Short Haul Lorry

EARLY VEHICLES Comet -By 1963, the Comet was operated by

every State Transport Undertaking in India, and over 8,000 were in service.

EARLY VEHICLES Comet

EARLY VEHICLES Hino Engine -During early 80's Ashok Leyland entered into

a collaboration with Japanese company Hino Motors from whom technology for the H-series engines was sourced.

-Most current models of Ashok Leyland come with H-series engines.

EARLY VEHICLES Bus powered by Hino Engine

CURRENT VEHICLES U-Truck Ashok Leyland, announced sale of vehicles on

the new U-Truck platform from November, 2010. Further, another 15 models are set to enter the market in the next 12 months.

CURRENT VEHICLES U-Truck

CURRENT VEHICLES

U-3723H

CURRENT VEHICLES Dost -Ashok Leyland's entry into Light Commercial

Vehicle segment with Dost -DOST is a 1.25 ton light commercial vehicle

(LCV). -With the launch of Dost Ashok Leyland has

now entered the Light Commercial Vehicle segment in India.

CURRENT VEHICLES Dost

CURRENT VEHICLES Stile

ASHOK LEYLAND DEFENCE SYSTEMS

Ashok Leyland Defence Systems (ALDS) is a newly floated company by the Hinduja Group. Ashok Leyland is the largest supplier of logistics vehicles to the Indian Army. It has supplied over 60,000 of its Stallion vehicles which form the Army's logistics backbone.

ASHOK LEYLAND DEFENCE SYSTEMS

CURRENT VEHICLES

ASHOK LEYLAND FOREIGN OPERATIONS

Lanka Ashok Leyland -Lanka Ashok Leyland (LAL) in Sri Lanka was formed in

1982 and started its operations in 1983 as a Joint venture between Lanka Leyland Ltd and Ashok Leyland Ltd India. LAL imports commercial vehicles in both knock down kits or fully built and carry out assembly operations, repair and service, body building on chassis.

Avia -In October 2006, Ashok Leyland bought a large stake in the

Czech based-Avia, later renaming as Avia Ashok Leyland Motors, to gain entry into the competitive European market.

Optare -In 2010 Ashok Leyland acquired a 26% stake in the British

bus manufacturer Optare, a company based on the premises of a former British Leyland subsidiary C.H. Roe. In December 2011 Ashok Leyland increased its stake in Optare to 75.1%.

FACILITIES Manufacturing Units India:

Ennore, Tamil nadu in North Chennai [estb. 1948] – Trucks, Buses, Engines, Axles etc.

Hosur, Tamil nadu in Krishnagiri District - [estb.-1980] -Has Two plants adjacent for Trucks, Special Vehicles and Power Units.

Alwar, Rajasthan – [estb.-1982] - Bus Manufacturing Unit Bandara, Maharashtra – [estb.-1982] – Gearbox Unit Pantnagar, Uttarakhand – [etsb.-2010] – 75,000 annual

capacity greenfield Unit for new generation Platforms and Cabs.

Sengadu, Kanchipuram District in Tamil Nadu - [etsb.-2008] -Technical and Production facility for Ashok Leyland Defence Systems. Another separate technical center for Nissan Ashok Leyland Vehicles.

FACILITIES Manufacturing Units Europe

Sherburn-in-Elmet, Great Britain – Optare Bus. Letnany in Prague, Czech – Avia plant.

Middle East Ras Al Khaimah, UAE – estb. 2011 – Bus manufacturing facility

– Joint Venture between Ashok Leyland and Ras Al Khaimah Investment Authority (RAKIA) in UAE

Technical Centre

Ashok Leyland's Technical Centre, at Vellivoyalchavadi (VVC) in the outskirts of North Chennai near Minjur, is a state-of-the-art product development facility, that apart from modern test tracks and component test labs, also houses India's one and only Six Poster testing equipment.

BUSINESS STRATEGY Ashok Leyland give most appropriate transport

solutions to their customer.  Ashok Leyland firmly believe that the honest

approach will make the Ashok Leyland marquee the symbol of the very best in transportation.

Quality to their customer:-Safety, Strength and Performance.

It has been found that the Automobile Giant Ashok Leyland Ltd, Chennai, has got one of the very successful Supplier development Program as part of its World-Class Supply Chain Management.

Manufacturer Dealer Customer 

PESTEL ENVIRONMENT1. Political2. Economical3. Social4. Technical5. Ecological6. Legal

PORTER’S FIVE FORCES ANALYSIS

1. The threat of new entrants.2. The bargaining power of buyers. 3. The threat of substitute products.4. The amount of bargaining power

suppliers have.5. The amount of rivalry among

competitors .

SWOT ANALYSIS

1. STRENGTH of the company.2. WEAKNESS of the company.3. OPPORTUNITIES for the company.4. THREATS faced by the company.

DRAWBACKS The domestic sales of the company are

not up to the mark.  Ashok Leyland has not got a foothold in

the luxury trucks segment in its domestic market.

CNG buses of Ashok Leyland are also not playing well on the roads, some or other break down creating problem for them.

Warranty cost is too high. Sales representatives are less.

WHY KM? THE CHALLENGE STATEMENT

Leverage Big Data and advanced

analytics to improve product performance and reduce warranty cost

THE PROBLEM Due to increasing competition, there is

tremendous pressure and need for improving product quality at reduced cost to remain competitive.

The need to differentiate from competition is ever-increasing in the areas of product design & performance and enhancing customer experience

Product data today is captured in multiple systems like ERP, CRM, DMS, PLM, MES, etc.

Providing insights by consolidating the data from multiple sources to improve product performance is a challenge.

Warranty cost directly impacts the bottom line of an organization. How can we leverage data to provide insights towards reducing such costs?

KM INTRODUCTION KM system introduced in 2002. Ashok Leyland has combined IT and KM to

create a multi-functional core team comprising six members. Executives from product development, HR and marketing are included in this select team. The rest of the initiatives will be done at individual unit/division level.

HR department to devise a programme to capture 'pockets of knowledge' within the organisation, which are normally not very visible.

NEW INITIATIVES Leyland Direct - With Leyland Direct we are just a

call away 24x7. This toll free helpline is your single window to us for all your needs. Accessible from all mobile and landline network.

Driver Training - Ashok Leyland has pioneered driver training in India recognising the vital role of the commercial vehicle driver. In fact, there is empirical proof that proper training can result in 5% or more fuel saving, translating into 3% reduction in total operating cost. We offer driver training to fleet owners, their drivers, individual drivers cum owners who appreciate that professionally trained drivers can make a significant difference to their businesses. Training is also imparted to drivers in the unorganised sector

ASHOKLEYLAND DTIS Over the years, Ashok Leyland’s Driver Training Institutes

have evolved as Centres of Excellence, where the philosophy is to prepare drivers for life – both on and off the road. With a state-of-the-art infrastructure and a scientifically designed curriculum, the training covers all aspects of driving and road management, while also promoting a holistic approach to health, stress control and overall well-being. Skills such as safe driving, fuel conservation, repairs and maintenance are taught. Other aspects of life on the road are also highlighted – trouble shooting, fire-fighting, and first aid. The importance of good health is stressed, with special emphasis on prevention of HIV – the most prevalent disease among truckers. Additionally, certificate courses are conducted in specialized subjects, such as handling of hazardous materials.

This professional training makes a huge difference. Drivers who are trained systematically and scientifically have a significant advantage over those without proper skills. The result? Fewer accidents, lower operational costs and a happy workforce who are an asset to the organisation.

KM IMPACT1. Reduce warranty cost by 10%2. Reduce defects per vehicle by 10%3. Reduce cycle time in defect capturing

to implementation of design modification

4. Improve customer satisfaction by reducing the repair timeAshok Leyland has got almost 700

touch points including Dealers, Authorized Service centers, Spare parts retailers, etc.

Ashok Leyland has a centralized Customer Relationship Management system (CRM) and Dealer Management System (DMS)

THANK

YOU