os report
TRANSCRIPT
Organisational Study at MRF
CHAPTER- 1
Introduction
As a part of two year MBA program at MCMAT Perumbavoor, at the end of 2nd
semester, we had to carry on a project in an organization in order to understand the
organization structure and their functions. This was a great opportunity to get the
first hand information and understand the functioning of the various departments.
I did my Organization Study at MRF LTD, Kottayam. It was a great learning
experience as it is quite necessary for all the management students.
Need for the study
The main purpose of doing the organization study was to understand various
departments of the organization and study their basic functions, purpose,
achievements, competitors and the mission and vision of the company and their
progress towards that .
All general information we get in course is all theoretical knowledge, on which we
entirely cannot depend on. It is very important to observe the actual working and
overall structure of an organization. The actual professionalism can be studied only
through experience.
The study focuses on the overall structure of the organization. In this study, there
was an analysis of the overall functioning of the firm and also the financial
performance of the enterprise. Also make an attempt to perform the SWOT analysis
of the firm.
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Objectives of the Study
The main objectives of the study are:
i. To familiarize with a reputed industry, business house or service organization
ii. To get acquainted with the different departments in an organization and their
functioning.
iii. To enable to understand how the key business process are carried out in
organizations.
iv. To understand how information is used in organization for decision making
at various levels and
v. To relate theory with practice.
Research Methodology
Primary data:
- Primary data were collected from discussions with the managerial head of the
various departments.
Secondary data:
- Secondary data were obtained from the annual report, from the company
website and other concerned books.
Limitations of the study
Following limitations were experienced during the Organisation Study:
- Finds it difficult to meet concerned personnel in various departments.
- Certain areas were restricted so detailed study was not possible
- Auditing process in the organisation was on in the same period that also
created some difficulty.
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CHAPTER 1
2.1) INDUSTRIAL PROFILE
Tyres off take by different automobile segments directly reflect the pace of
economic activities in a country. The performance of commercial vehicle tyres is
directly linked to the country’s economic development. India, being the world’s
second most populous and seventh largest country in area has been orchestrating
tremendous GDP growth for the last few years which transform into the dynamic
developments of various industries, including automobile and tyres.
According to a new research report “Indian Tyre Industry Analysis”, the financial
crisis has had moderate negative effect on the commercial vehicle market which
creates strong demand for tyres in the country. The demand for commercial vehicles
has recorded sluggish growth due to the weak performance of infrastructure,
construction, manufacturing and other sectors. However, the commercial vehicle
segment regained its growth in FY 2010 both in terms of production and sales. The
main reason for revival of growth in the commercial vehicle segment is recuperating
demand from almost all prominent sectors. It was reflected in increasing tyres off
take during FY 2010 and tyre production grew around 18.3% over FY 2009. India
still lags far behind other major economies when compared in terms of
radicalisation. For instance, the radicalisation level in Western Europe, North
America, and Central Europe is around 100%, 96%, 95% respectively. Even the
world average radicalisation (65%) is well ahead of Indian standards at 9.1%.
However, the penetration of radial tyres is increasing fast in the country.
Approximately 98% of passenger cars tyres now belong to radial category. Besides,
the radial tyre penetration is surging fast in the commercial vehicle and truck & bus
segment. The report provides an extensive research and objective analysis of the
Indian tyre industry and its different segments. The report gives authentic statistics
and information of market structure, tyre production, and demand by segments,
exports, and imports trends till FY 2014. The market potential estimations and
forecasts have also been covered for radial tyre industry and tubeless tyre segments
to empower clients with cutting edge market intelligence. The report also contains
information about the regulatory environment and the leading industry players with
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focus on their business description and recent developments. Since the performance
of tyre industry depends on the availability and prices of raw material, the report
helps clients to understand the impact of rubber prices fluctuation on the tyre
industry.
Structure of Indian Tyre Industry
Background
The origin of the Indian Tyre Industry dates back to 1926 when Dunlop Rubber
Limited set up the first tyre company in West Bengal. MRF followed suit in 1946.
Since then, the Indian tyre industry has grown rapidly.
Transportation industry and tyre industry go hand in hand as the two are
interdependent. Transportation industry has experienced 10% growth rate year after
year with an absolute level of 870 billion ton freight. With an extensive road
network of 3.2 million km, road accounts for over 85% of all freight movement in
India.
Market Characteristics
1) Demand
The demand for tyres can be classified in terms of:
Type
- Bus and Truck;
- Scooter; Motorcycle;
- Passenger Car;
- Tractor
Market:
- OEM;
- Replacement;
- Export
Tyre Demand by Type
The Indian tyre industry produces the complete range of tyres required by the Indian
automotive industry, except for aero tyres and some specialised tyres. Domestic
manufacturers produce tyres for trucks, buses, passenger cars, jeeps, light trucks,
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tractors (front, rear and trailer), animal drawn vehicles, scooters, motorcycles,
mopeds, bicycles and off-the-road vehicles and special defence vehicles.
Truck and Bus Tyres: Every truck/bus manufactured generates a demand for seven
tyres (six regular and one spare) as against three in the case of two-wheelers and five
for passenger cars. In addition, the price of a truck tyre is significantly higher than
that of a passenger car tyre or a motorcycle tyre. Thus the demand multiple
emanating from the commercial vehicle segment is highest in value terms.
Passenger Car Tyres:
Motorcycle Tyres:
Scooter Tyre:
Tyre Demand by Markets
Vehicle Manufacturers or OEMs: The demand from the OEM segment is a
derived one and directly correlated to the level of automotive production.
Replacement Market: The demand in the replacement market depends on the
vehicle population, the level of economic activity, life of the products transported,
kilometre per vehicle, the price of the tyres and the quality of the existing road
infrastructure. Additionally, the replacement market, which offers better margins, is
extremely competitive. The large size of the replacement in turn is determined by the
interplay of various factors as discussed below:
- The replacement demand may be lower because of longer replacement
intervals and lower business mileage if the economic activity slows down.
- Replacement demand in India is higher because of a low vehicle scraped rate.
- Poor road conditions by lowering the life of tyres have a positive impact on
replacement demand.
- Stricter enforcement of the MV Act, which seeks to prevent overloading of
vehicles, will result in an increase in the life of tyres and thus impact replacement
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demand negatively.
- Applying a new tread or "re-treading" can extend the life of the tyre at a
significantly lower cost, thereby lowering replacement demand. In India, re-treading
finds greater acceptance in the commercial segment.
- Introduction of tubeless tyres in the passenger car segment is also likely to
affect replacement demand adversely.
- Introduction of eco-friendly radial tyres such as hyper-bonding silica
technology in the passenger car segment may affect replacement demand adversely.
Exports: Indian companies have currently entered into sourcing agreements (for
tyres) with neighbouring countries. For instance, Ceat and J K Tyres have sourcing
agreements with tyre producers in Sri Lanka and China. This is likely to have a
positive impact on tyre exports from India
Outlook
The level of economic activity, performance of domestic automotive industry, and
the faring of the transport sector directly influence the performance of the tyre
industry in India. With the replacement segment dominating the overall tyre demand
in India, the industry remains inherently vulnerable to economic cycles. While
radicalisation has become the norm in the passenger car segment, in the bus and
truck tyre segment, its acceptance is still limited. Bus and truck radicalisation could
emerge in the long term as the quality of roads improves and the restrictions on
overloading are better enforced. The practice of re-treading, which is gaining
increasing acceptance, could pose a challenge to replacement demand in the medium
term. The ability of the re-treading sector to capture potential replacement demand
would depend on the awareness among customers (of the benefits of retreading) and
also the quality of retreading done. Given the low levels of penetration of two-
wheelers and passenger cars in the country, OEM demand is likely to increase,
which in turn would push up replacement demand with a lag.
The prospects of tyre exports from India appear healthy, following efforts by Indian
companies to increasingly enter into outsourcing agreements with tyre producers in
Southeast Asia, Eastern Europe and Latin America. Overall, tyre manufacturers are
likely to tap the export market in an effort to boost sales. The increasing exports of
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bus and truck tyres (crossly variety) from India to developing countries is because of
the fact that developing countries are unable to source them from developed
countries as these are no more produced there. Tyre imports are unlikely to pose a
threat to the domestic industry, given that domestic prices are lower than
international tyre prices. In the domestic market, tyre manufacturers are expected to
increasingly focus on expanding their dealership networks & explore possibilities of
tie-ups among themselves to penetrate the growing customer base. They are also
likely to pursue innovative measures (such as "dial-a-tyre service and road shows) to
improve customer awareness.
The consolidation of the Indian tyre industry is likely to continue in the coming
years through mergers among existing players. The industry is likely to expand
through a combination of organic and inorganic growth. While organic growth
would come from raising efficiency levels, inorganic growth would be achieved
through alliances and M&As.
Major Market Players and their market shares
1) MRF - 22%
2) Apollo - 21%
3) JK - 18%
4) Ceat - 13%
5) Birla - 10%
6) Goodyear - 7%
7) Bridgestone - 5%
8) others - 4%
2.2 COMPANY PROFILE
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MRF Limited
Madras Rubber Factory, popularly known as MRF, is a major tyre manufacturing
company located in Chennai, Tamil Nadu India. MRF is mainly involved in making
vehicle tyres. It is India's largest tyre manufacturing company, and among the dozen
largest worldwide. MRF holds 15th position in the global market. It exports to more
than 65 countries. 40% of the products are being exported. A leader in the category
MRF holds the No.1 position for the last 21 years. Established as toy-balloon
manufacturing company in 1946 by KM Mammen Mappillai, MRF quickly emerged
as the leading maker of tread rubber. Since then, the company hasn't looked back.
The fact that it is the first tyre company in India to reach a turnover of 5000 Crores
is testament to its dominance of the industry. The company's penchant for quality
has earned it the distinguished Q1 certification from Ford - an achievement that
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Founded 1946
Founder(s)K.M.Mammen
Mappillai
Headquarte
rsChennai, India
Key people Arun Mammen (MD)
ProductsTyres, Toys, Sports
Goods
RevenueINR 8,080 Crores
(2010)
Operating
income
INR 354 Crores
(2010)
Net income INR 543 Crores(2010)
SubsidiariesFunskool, MRF Pace
Foundation, MRF
Racing
Websitehttp://
www.mrftyres.com
Organisational Study at MRF
qualifies MRF to supply tyres to any of the Ford plants worldwide. This has also
translated in the company winning the prestigious JD Power award five times.
BOARD OF DIRECTORS
K.M.Mammen (Chairman and Managing Director)
Arun Mammen (Managing Director)
K.M. Philip (Whole Time Director)
Dr. K.C. Mammen
Asok Jacob
V. Sridar
Vijay R Kirloskar
N. Kumar
Ranjit I Jesudasen
S. S Vaidya
Dr. Salim Joseph Thomas
HISTORY
1946: A young entrepreneur, K.M.Mammen Mappillai, opened a small toy balloon
manufacturing unit in a shed at Tiruvottiyur, Madras (now Chennai).
1949: Although the factory was just a small shed without any machines, a variety of
products, ranging from balloons and latex-cast squeaking toys to industrial gloves
and contraceptives, were produced. During this time, MRF established its first office
at 334, Thambu Chetty Street, Madras (now Chennai), Tamil Nadu, India.
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1952: MRF ventured into the manufacture of tread rubber. And with that, the first
machine, a rubber mill, was installed at the factory. This step into tread-rubber
manufacture was later to catapult MRF into a league that few had imagined possible.
1955: MRF soon became the only Indian-owned unit to manufacture the superior
extruded, non-blooming and cushion-backed tread-rubber, enabling it to compete
with the MNC's operating in India at that time.
1956: The quality of the product manufactured was of such a high standard that by
the close of 1956, MRF had become the market leader with a 50% share of the tread-
rubber market in India. So effective was MRF's hold on the market, that the large
multinationals had no other option but to withdraw from the tread rubber business in
India.
1960: The Company was incorporated as a private limited company on 5 November.
The Company Manufacture automobile, aircraft, cycle tyres and tubes in
collaboration with the Mansfield Tire & Rubber Co., Mansfield, Ohio, U.S.A. The
tyres are sold under the trade name Mansfield Tyres (MRF). The Company also
produces other industrial products made of rubber like conveyor belt, hoses etc. It
took over the entire business of the Madras Rubber Factory as a going concern as
from 16 November, for a consideration of Rs.25 Lakh.
1961: The Madras Rubber Factory Private Limited was converted into a public
company on 1 April, and additional capital was issued in order to start the
manufacture of automobile tyres and tubes in collaboration with the Mansfield Tire
& Rubber Co., Mansfield, Ohio, U.S.A. The Company was given permission to
export tyres having Mansfield trade mark to all world markets except U.S.A. and
Canada. : 2, 49,650 shares allotted without payment in cash. 350 shares subscribed
for by the signatories to the Memorandum of Association. 2, 50,000 shares reserved
and allotted directors. 5, 00,000 shares issued to public in April 1961. The balance 2,
50,000 shares allotted to collaborators as payment for machinery.
1962: The main plant for production of tyres and tubes were commissioned on 4
December.
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1963: Nylon Hot-Stretch Unit of the latest design was commissioned in November.
6, 25,000 Right Equity shares offered at par in the proportion 1:2.
1964: With the commissioning of the main plant in 1964, MRF also made progress
in the export of tyres. An overseas office at Beirut (Lebanon) was established to
develop the export market, and it was amongst India’s very first efforts. This year
also marked the birth of the now famous ‘MRF Muscleman’.
1967: MRF became the first Indian company to export tyres to USA - the very
birthplace of tyre technology.
1970: On March 5, 1970 bonus equity shares (62,500) issued in the proportion 3:10.
The Company set up 2nd manufacturing unit at Kottayam.
1971: The Company set up 3rd manufacturing unit at Goa
.
1972: The Company set up 4th manufacturing unit at Arkonam.
MRF becomes India’s largest tyre manufacturing company.
1973: MRF scored a major breakthrough by being among the very first in India to
manufacture and market Nylon tyres.
1975: During September, 12, 1975, bonus shares (18,714 no’s) issued in proportion
1:2. (Only 12, 18,689 shares were taken up).
1978: The Company finalised technical know-how collaboration with B.F. Goodrich
Co., U.S.A., which became fully operative in early 1980-81.This agreement was
revalidated for further five years.
1979: The Mansfield Tire & Rubber Co., U.S.A. offered for sale out of its holding 3,
74,250 No. of Equity shares of Rs 10 each of the Company at a premium of Rs 4
each as follows: 3,63,786 shares as rights to the existing shareholders in the
proportion 1:8 and 10,464 shares to the employees of the Company.
MRF's turnover crossed INR one billion.
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1980: The Company crossed several milestones in its history. It went into technical
collaboration with BF Goodrich Tire Co., USA in the year. The name of the
Company, Madras Rubber Factory Ltd. was changed to MRF Ltd in the year.
1983: The Company finalised a technical collaboration agreement with M/s.
Marangoni TRS SPA, Italy for the supply of know-how for the manufacture pre-
cured tread rubber for retreading industry.
1984: Sales crossed INR two billion. MRF tyres were the first tyres selected for
fitment onto the Maruti Suzuki 800 - India's first small, modern car.
1985: A letter of intent was obtained for the manufacture of conveyor belts and
hoses in collaboration with Industrial Pirelli SPA,Italy. Plans were also on hand to
go in for a joint venture with the aero tyre division of B.F. Goodrich & Co., for
retreading and subsequently for manufacturing aircraft tyres.
1986: The Company issued 15% non-convertible debentures of Rs 100 each (II
Series) for Rs.8 Crore as rights to the existing shareholders to raise finances for
modernisation of the Company.
1987: MRTP clearance was also obtained for setting up a new plant at Tada in
Andhra Pradesh for manufacture of 1.5 million numbers of tyres and tubes per
annum.The Company entered into a collaboration agreement with Vapo cure of
Australia to manufacture polyurethane paint formulations that can be rapidly cured
at room temperature and would also help in the manufacture of shatter-proof glass.
The plant with an installed capacity of 10,000 tonnes per annum was being set up at
Gummidipoondi in Tamil Nadu. Funskool (India), Ltd. and `Crystal Investment and
Finance Co. Ltd.' became subsidiaries of the Company. Funskool (India), Ltd. was
promoted in collaboration with Hasbro International, U.S.A., and the World's largest
toy makers. MRF crossed the INR three billion mark.
1988: The MRF Pace Foundation was set up, with international pace bowler, Dennis
Lillee as its Director. Not long thereafter, pace bowlers trained at the Foundation
were selected for the Indian Cricket Team.
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1989: The Company was identified as `Star Exporter', a status that enables the
company to get priority treatment in several areas concerned with Customs, RBI,
etc. Aero tyre division of B.F. Goodrich Co., USA was taken over by Michelin Cie
of France. Government approved the technical collaboration with Uniroyal Goodrich
Tire Co., U.S.A., and a subsidiary of Michelin Cie., France, for imparting latest
technology for bias ply/radial aircraft tyres for a period of 5 years.
1990: The Aruna Leathers & Exports Ltd. was amalgamated with the Company. The
Company introduced `Vapocurea' colours in the market. The Company privately
placed with SBI Mutual Fund.
1991: The Company promoted a new Company viz. MRF International, Ltd., in
view of the tremendous growth potential in the export market.
1992: The Company has formed a new Company, viz., MRF INTERNATIONAL
LIMITED and the Company has received the certificate of commencement of
business.
1993: K.M.Mammen Mappillai was awarded the Padma Shri Award of National
Recognition for his contribution to industry - the only industrialist from South India
to be accorded this honour. MRF also became the first tyre company in India to
cross the INR 10 billion mark. In addition, the company was voted by the Far
Eastern Economic Review, as one of the ten leading Corporate Groups in India and a
Leader in Asia and by readers of the A & M magazine, as one of India's most
admired Marketing Companies.
1995: The Company has received the Top Export Award for the year from All India
Rubber Industries Association. The company's turnover crossed INR 15 billion.
1996: The Company has received an award from CAPEXIL - Certificate of Merit
based on the export performance for the year. The Far Eastern Economic Review
Award was presented to MRF for the fourth year in succession in recognition of
excellence.
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1997: MRF Ltd has been assigned a credit rating of `PR1+' (superior) for its
proposed Rs.100 crore commercial paper (CP) programme by Credit Analysis and
Research Ltd (CARE). MRF is setting up a new plant in Pondicherry for the
production of radial tyres. The company set up the Arakkonam plant in Chennai to
produce bicycle tyres and tubes. MRF began manufacturing tyres and tubes in
technical collaboration with Mansfield Tire and Rubber Company, USA. MRF has
launched Nylogrip Zapper, a high performance tyre for new generation bikes. The
company tied up with Uniroyal Goodrich Tire Co. of USA, a subsidiary of the
French Tyre giant Michelin, which held 9.8 percent stake in the company.
1998: MRF Tyres has signed an OEM (original equipment manufacturer) alliance
with Siel Honda Motors and Hindustan Motors. MRF has launched a market
sampling operation for the MRF Zigma.
1999: MRF Ltd has decided to set up more such clinics in Northern and Western
cities. The Company has entered into agreements with the Depositories viz.,
National Securities Depository Ltd. [NSDL] & Central Depository Services (India)
Ltd. AIRIA Highest Export Award was given in recognition of our outstanding
export performance in respect of Auto Tyres & Tubes during the year.
2000: The Company has set up shop in Dubai to target markets in the UAE as part
of its export thrust. MRF has launched a steel-belted premium radial tyre variant
called `MRF ZVTS'.
2002: MRF was ranked highest in customer satisfaction along with multinational
Bridgestone in a study conducted by JD Power Asia pacific. MRF Tyres Ltd sees
slump in commercial vehicle tyre market and passenger car growth has also
declined.MRF Ltd has obtained the 'Outstanding Corporate Sports Initiative' award
from the Federation of Indian Chamber of Commerce and Industry.
2003: MRF and Bridgestone are ranked highest in a tie for the second year in a row
in customer satisfaction with original tries according to JD Power Asia Pacific. Shri
K.M. Mammen Mappillai, Chairman and Managing Director expired on March 2nd.
Mr. Arun Mammen took charge as Managing Director of the Company w.e.f April
1, 2004
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2004: MRF Ltd. has informed that Mr. Ravi Mannath has been appointed as
Additional Company Secretary of the Company w.e.f. January 5, 2004.
MRF received the highest rankings in the study in four of the five factors
determining overall satisfaction with tyres appearance, durability, traction and
handling. MRF Tyres is the biggest consumer of natural rubber in India during 2002-
03.Ties up with Maruti Udyog to boost motorsports in India
2007: MRF Ltd launches premium truck tyre Super Lug 50-FS.
2010: The Company inaugurates its 7th unit at Medak.
2011: The company inaugurates its 8th unit at Trichi. The launched India’s Eco-
Friendly Car Tyre- MRF ZSLK
SPORTS
MRF has been involved in the development of cricket through its sponsorship of
many cricketers and MRF Pace Foundation. At one point of time, MRF was the bat
sponsor of world-class batsmen including Brian Lara, Sachin Tendulkar, and former
Australian captain Steve Waugh.After Waugh's and Lara's retirement from
international cricket, on 4 September 2009, MRF's contract with Sachin Tendulkar
too expired. Sachin now uses Adidas bats, and MRF are currently sponsoring
Gautam Gambhir and Rohit Sharma two other members of the Indian cricket team.
At IPL 2010, MRF got the charge of the moored balloon floating above the cricket
grounds. It contained a high-definition camera recording live actions of the cricket
match.
Sponsorships
India - Gautam Gambhir (2011) and Rohit Sharma
Bangladesh – Ashrafull
West Indies - Brian Lara
Australia - Steve Waugh
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2.3) PRODUCT PROFILE
Products and services of MRF
Products:
Following are the various products of MRF:
1) TYRES
1.1) Passenger Cars
- Radial tyre pattern
- Bias Ply tyre pattern
1.2) Two Wheelers
- Motor Bikes Front
- Motor Bikes Rear
- Scooters Front
- Scooters Rear
1.3) OTR
1.4) Trucks and Buses
1.5) Farm Services
1.6) LCV
- Radial
- Basis
1.7) Tubes and Flaps
2) CONVEYOR BELTS: MRF manufactures its MUSCLEFLEX brand of
Conveyor Belting at one of the most advanced, 'State of the Art', Facilities in
India. Incorporating the latest manufacturing techniques in processes beginning
with Mixing, Calendaring and the like, to manufacturing of the Finished
Products, all of which is In-House, MUSCLEFLEX-Conveyor Belting has
gained rapid acceptance in markets worldwide. A comprehensive range of Cover
Grades covering a wide variety of applications is manufactured. These Cover
grades conform to the most Stringent International Standards, across the range.
MRF Conveyor Belting Division is ISO 9001 certified. Belting is manufactured
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under a detailed Quality Assurance Plan involving meticulous raw material
testing, in-process controls and stringent finished product testing. MRF's
comprehensive range is used for several applications including Mining, Quarries,
Ports, Thermal Power Plants, Cement Plants, Steel Plants, Fertilizer Plants,
Paper Manufacturing, Fertilizer Industry etc. Exports currently cover 15
countries across the world and growing rapidly
3) PRE TREADS
MRF PRETREADS is the most advanced pre cured retreading system in India. MRF
forayed into retreading as far back as 1970. Today, MRF has perfected the art of re
cured retreading with its extensive knowledge in tyres and rubber. In the MRF
PRETREADS system, the tread rubber is pre cured from MRF's factory in a
carefully controlled environment, thereby ensuring world-class quality. Today, MRF
PRETREADS has emerged as the Mileage leader in pre cured retreading and also
has the specialized expertise required for retreading Radial Tyres of Truck, Bus,
LCV and Passenger vehicle.
Advantages of MRF Pre tread
Following are the major advantages of MRF Pre tread:
1) Greater tyre mileage
2) Better road grip
3) Well researched tread pattern through years of innovation and testing.
4) Proven rubber technology
5) Range of patterns to suit various applications.
6) Low operating costs.
4) PAINTS AND COATS
Wall finishes
Glass finishes
Auto Coat
Plastic Finishes
Metal Finishes
Colour Dome:
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Vapo cure
SERVICES
Following are the services being provided by MRF:
MRF offers a whole host of services to its customers, ranging from helping them
pick the tyre of their choice to helping them maintain their vehicle.
1) T & S: MRF T&S is a one stop shop for a unique tyre shopping experience. An
experience that's fun and enjoyable for the whole family. T&S stocks the entire
range of MRF tyres and is equipped to provide services of computerised wheel
alignment, wheel balancing and tyre changing. It is an answer to the increasing
number of world-class cars which are cruising on Indian roads. Customers shop
for tyres and wheel related services in air conditioned comforts. Each T&S
facility has an exclusive corner where customers can unwind over a cup of hot
coffee as they wait. The technicians at MRF T&S are trained at the MRF Tyre
dome. Currently, there are 90 T&S franchisees across the country and many
more springing up each day.
2) MRF Tyre Dome: The MRF Tyre dome is a state-of-the-art facility with
contemporary computerised equipment to diagnose and correct wheel related
problems. The MRF Tyre dome is manned by factory-trained, experienced
engineers and technicians. The Tyre dome is frequented by car owners who drive
down and enjoy the unique carwash experience with their whole family. It is
open to all days of the week (except on Sundays and public holidays) between 8
AM and 8 PM.
The Tyre dome offers a whole host of services:
Wheel Alignment
- High precision wheel alignment using the latest technology
- 8 digital high resolution cameras are used for stereoscopic measurements
which guarantee fast, precise and reliable measurements independently
- Databank of more than 18,000 imported vehicles which is updated by the
equipment manufacturer with world's leading automotive manufacturers
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Wheel Balancing
- Dynamic balancing of wheel assembly for increased tyre life and enhanced
vehicle stability
- Exclusive wheel balancing programs for alloy wheels
Tyre Changer
- A universal and automatic tyre changer is used for all cars and SUV wheels
- Damage-free tyre changing is carried out using a mounting and demounting
tool
- A tyre changer capable of handling both tube type and tubeless tyres
Nitrogen Filling
- Tyres inflated with nitrogen runs cooler and does not lose pressure as quickly
as those inflated with air
- Nitrogen prevents oxidation, thus increasing the life of expensive rims and
tyres
- Nitrogen being an inert gas it cannot catch fire or explode making it safer
than air in tyres
Robotic Car Wash
- A fully automated car wash that cleans your car and leaves it sparkling clean
- The insides of the car are vacuum cleaner while grime and dust are removed
using a special wax based detergent
Optical Headlamp Aligning
- The headlamps of the car are aligned and focused for safe driving
Tubeless Tyre Repair
- Professional repair for radial tubeless tyres
- Repair ensures that the steel belts are not exposed to moisture, preventing
tyre failure
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3) MRF Institute of Driver Development: In an economy that is booming with a
GDP growth rate of around 8% per annum, the need of the hour is organised and
efficient transport systems. Developing economies such as India depend heavily
on road transport. Such heavy reliance has led to a dearth of skilful and
competent drivers who drive safely. In order to address this problem, MRF has
instituted a non-profit organisation known as the MRF Institute of Driver
Development (MIDD), which imparts training to unemployed young men in
light and heavy commercial vehicle (LCV and HCV) driving. The objective of
the institute is to produce proficient HCV drivers in the larger interest of the road
transport industry. Over two decades, the institute has turned out over 2000 LCV
and 700 HCV drivers since its humble beginnings in 1988. Apart from its main
objective of training drivers for HCVs, the institute, in the preliminary stage (the
first 6 weeks) of the training process, provides training for LCVs as well. During
this stage, the driver's aptitude for professional driving is ascertained. After this
6-week phase, the trainee spends one year 'on the field' driving Light
Commercial Vehicles, before being admitted to the Heavy Motor Vehicle
(HMV) phase, which extends for another term of 3 months. Along with instilling
in its trainees the spirit of hardship and strength of character, the institute also
organises lessons for its trainees in several key issues like First Aid, prevention
of drug abuse and alcoholism, AIDS awareness, etc. Special classes to learn
Hindi are also conducted to enable the HCV trainees take up driving on National
Permit routes with ease. The end product of one and a half years of dedicated
and rigorous training: professional and efficient drivers who abide by the rules,
facilitating the growth process of the nation
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CHAPTER 3
Organisation Structure of MRF Kottayam Plant
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Production Manager
Engineering Manager
Quality Manager
Plant Technical Manager
Industry Engineering
Kottayam Plant Head
Accounting Manager
Plant HR Manager
Administration and Public Relations
Security Manager
Safety Manager
Organisational Study at MRF
HUMAN RESOURCE DEPARTMENT
Organisation chart of HR department
Following is the organisation chart of HR Department:
HR Functions in MRF Kottayam Plant
Following are the major functions of HR Department:
1) Recruitment and Selection
1.1) Staff Recruitment
Staff recruitment is mainly done from campus.
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Chief HR Manager
TrainingWelfareEmployee RelationsIndustrial Relation
Organisational Study at MRF
Basic Qualification
Supervisors: B.sc Physics/ Chemistry with 60 % or above marks (Male candidate
only)
Engineers:
B.Tech (Mechanical/ Electrical) with 60 % or above marks (Male Candidates only)
The following procedures are being used for staff recruitment:
1) Technical test: This is an objective type test based on the academic qualification
of the candidates. It measures the knowledge already acquired by the candidate.
60% of marks must be obtained to pass this test.
2) IQ Test: The candidates’ proficiency in English, maths and his reasoning skills
are being tested. This also requires 60% marks to pass
3) Day Plan: In this test, the candidates will be provided with a list of various
activities including personal and official. And the candidates will be asked to
arrange those activities in the best possible manner. Here the candidates’ ability
to balance his official and personal life is being tested.
4) Group Discussion: Next step is GD where the candidates will be divided into
small different groups consisting of 8-10 members. They have to discuss on a
given topic. The important criteria’s used for evaluating candidates during GD
are as follows: Assertiveness, planning, conflict management, relationship,
emotional maturity and outgoing
5) Interview: After GD, the candidates will have personal interview. An
interview is a face to face observation and personal appraisal method to evaluate a
candidate’s fitness for a job. This is a method by which an idea about the candidate’s
personality, intelligence, smartness and overall attitude can be obtained. The
interviewer can judge the qualities of the candidates – his manners, appearance,
ability to speak, the grasp of things, etc. The interviewed also obtains an opportunity
to know about the company and nature of the job. The interview will be
conducted by Plant Manager and HR Manager. It is to understand the personal and
technical skills of the candidates
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6) Medical test: After passing interview the shortlisted candidates will have to
undergo medical examination. The physical standards as to height, weight etc
will be examined. Medical examination is also considered necessary to ensure
that candidates selected do not suffer from any major illness.
7) Application to CMD: The list of candidates who passed the above tests will be
sent to CMD for his approval.
8) Final Selection: This is the final step where the candidates are finally selected, if
they fulfil all the above requirements. He is formally appointed. He will be
issued an appointment letter and is asked to join before a specific date. The
appointment letter specifies the terms and conditions of employment, nature of
job, scale of pay etc.
1.2) Workmen Recruitment
Basic Qualification: SSLC Passed
Age: 18-28 yrs
Height: 5’5”
Weight: 54 Kg
(Only male candidates)
After the receipt and scrutiny of applications, the following procedure is being
adopted for the recruitment of workmen:
1) WRITTEN TEST: The written test consists of general test and psychological
test.
2) MEDICAL EXAMINATION: The physical standards as to height, weight etc
will be verified. Medical examination is also considered necessary to ensure that
candidates selected do not suffer from any major illness.
3) ANTECEDENT VERIFICATION: In this step the representative of the unit will
visit the locality of the applicant and collect details about the candidates as much
as possible with regard to social and political background of the candidate and
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also whether he has any criminal background is also verified. They will even
visit the parish to which he belongs.
4) INTERVIEW: An interview is a face to face observation and personal appraisal
method to evaluate a candidate’s fitness for a job. This is a method by which an
idea about the candidate’s personality, intelligence, smartness and overall
attitude can be obtained. The interviewer can judge the qualities of the
candidates – his manners, appearance, ability to speak, the grasp of things, etc.
The interviewed also obtains an opportunity to know about the company and
nature of the job. The interview will be conducted by Plant Manager and HR
Manager.
5) APPLICATION TO CMD: The list of selected candidates will be sent to CMD
for approval.
6) SELECTION: After obtaining approval the candidates will be called to report for
training.
2) Training
Training Policy of MRF
“Is to provide and develop knowledge, skills and behaviour of our employees to
continuously improve their performance.”
To achieve this goal, all the MRF plants together with Corporate Office shall:
Identify and document training needs of each employee through competence
evaluation every year.
Design and publish training calendar and schedule.
Provide training periodicals based on the identified needs as per the
documented schedule.
Provide ‘On the Job Training’ whenever required.
Monitor and evaluate training process and outcome to assess and to decide the
next training cycle requirement.
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ASK Principles
Training at MRF is based on ASK principles.
A: Attitude - what do you know about yourself.
S: Skill – what do you do with what you do.
K: Knowledge – what do you know about you and your surroundings.
If change is being made in the attitude of the employees i.e. if positive attitude can
bring in people wonders can happen. So the main objective of the training policy is
to bring changes in their attitude. There are various criteria to evaluate the attitude,
skills and knowledge of the employees. The immediate supervisor will give monthly
report regarding it and training will be given to the employees made on that report.
More emphasis will be given to the area which the employees lack. Training
programme is intended to make the employees aware about their skills, and to
improve their knowledge.
Training Technique
In the Kottayam unit various training programmes will be conducted for employees
as different levels. In a month there will be such training programme for minimum
24 days.
Following are the various training techniques being used in the unit:
1) Level one and level two product and process training
This is being given to level 1 and level 2 employees to make them acquaint to the
various process being carried out in the factory.
2) Level one and level two mentorship training process
This training programme is done to give guidelines to the employees about
mentorship programme. The staff will be the mentors and the workmen will be the
mentees. Each mentor will have five mentees. The target being given by the unit to
the mentors this year is to conduct at least one home visit of the mentee. The home
visit of a superior will be much valued by a subordinate.
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3) Quality of life Program
In this programme the husband and wife will be called together and a class
will be given to them about how to balance work life and personal life, about
parenting, about hygiene etc.
4) Leadership and communication training
This is intended to improve the employee’s leadership and communication skills.
5) Yoga classes
6) Art of living
3) Time Office
Following are the various functions of time office:
3.1) Attendance Maintenance
The attendance records are being maintained by time office. For Management staff
the Biometric punching system and for workmen card swapping system is being
used.
3.2) Leave
For Staff
Staffs are eligible for the following leaves:
- Casual Leave( 4 days)
- Sick Leave ( 8 days)
- Privilege Leave(28 days)
Staffs that have joined the unit on 1st of January a year will be eligible for Casual
leave and sick leave in the concerned year. But for being eligible for privilege leave
he must be a staff in the unit in the immediate previous year.
Application for Leave
The staff can submit the leave application online. First it will be sent to the
concerned HOD, after his approval it will be sent to time office online.
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Compensatory Leave
If a staff member has to work on any Sunday or any other off day, due to any reason,
he will be eligible for compensatory leave on that week. The staff will be issued with
a Compensatory Card, he have to obtain approval from concerned HOD for working
on Sunday as well as approval for taking compensatory leave in the Compensatory
Card and the same must be presented before time office.
For Workmen
The time office will issue a Leave Card to the employees. Eligibility for leave is
based on their seniority.
* For senior workmen:
- Casual leave(15 days)
- Sick Leave(15 days)
- Privilege Leave: (one PL for every 20 days worked in the immediate previous
year) for e.g. if an employee has worked for 240 days in the immediate previous
year he will be eligible for 12 PL’s.
* For junior workers
- Sick leave(12 days)
- Casual Leave(12 days)
- Not eligible for privilege leave
3.3) Issue of uniform: Workmen will be given uniform material at the beginning of
every year.
3.4) Issue of safety shoes for workers
Safety shoes will also be provided at the beginning of every year. Wearing of safety
shoes in the factory is compulsory.
3.5) Issue of pay Slip
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Along with the pay slip the workers are a given 2 cakes of Lifebuoy soaps.
3.6) Filling of application forms
The workers will get assistance from time office to fill the application forms
like Bank Loan Application.
4) Provident Fund
PF is a social security scheme that is being provided by MRF to its employees. It
promotes savings and makes a provision for old age of an employee. Under this
scheme, the employees, while in service contributes periodically from his salary a
fixed amount to the salary. The employer too will contribute a sum to this fund. At
the time of retirement of employer or his death whichever comes earlier, the amount
standing to the credit of the employees together with accrued interest will be paid to
him or his legal heirs as the case may be. Thus the employees will get a lump sum
amount at the time of his retirement.
The employees to be included under this scheme have to submit Nomination Form
in ‘Form 2’ and the company will add him in’ Form 5’. Every month the company
will submit these forms to the PF office.
The employer and employee both will contribute 12% of the employee’s basic pay
towards this fund.
The 12% contribution is distributed as follows:
- Pension Fund (8.33%)
- Provident Fund (3.67%
From the Employers contribution 1.67% will be utilised as follows:
- Administration of provident fund (1%)
- Towards Employee Death Linked Insurance Scheme (EDLIS) (.5%)
- Administration of EDLIS (.1%)
Under Employee Death Linked Insurance Scheme an amount of Rs.1, 10,000 will be
given to the employee’s nominee on the happening of his death.
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If the employee resigns from the unit before a period of 9 years and 6 months, he can
withdraw the amount. And if he joins another company he can transfer the PF also.
It is called settlement of PF.
If the employee resigns from the unit after 9 years and 6 months, he either withdraws
the whole amount or can withdraw 3.6 %( PF fund) and the remaining amount can
be kept as pension fund. The board will issue a scheme certificate. If he works till
the age of 50 yrs in any other company and retires, he can apply for Reduced
Pension from the board. And if he works till the age of 58 yrs and retires, he will
eligible for Full Pension.
5) Employee State Insurance Scheme
The fundamental principle of ESI scheme is to make good the loss suffered by the
employee. Employees, who’s monthly salary less than Rs.15000/-, will get the
benefits under ESI Scheme. Employee will contribute 1.75% and the company will
contribute 4.75% of the basic pay towards this scheme. The company will forward
application by online on behalf of the employees to include them under the scheme.
The office will issue a Temporary Form for using by the employee till they get the
actual ESI Card. The employees have to file annual ESI Return to the ESI office.
ESI scheme benefits are as follows
1) ESI Treatment- The employee and his family (family includes his wife and
children) can take treatment from ESI Vadavathoor free of cost by presenting ESI
Card. The employees parents can be included under the scheme provided their
names have been included in Ration
Card and their monthly income is less than Rs. 1500/- and have to prove they are
depending on the employee.
2) Sickness Benefit: If the employees contribute to ESI Scheme for at least 6 months, he
will be eligible for sickness benefit. If the employee have to take leave because of
illness, the ESI office will make good the loss suffered by the employee. They will
give average salary to the employee for the days he took leave. They will deduct two
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days from the total number of leave taken and will calculate average salary on that
basis.
3) Accident Benefit
Because of any accident occurred in the factory, if the employees have to take leave
for 20 or 25 days for taking treatment from ESI hospital, the accident benefit will
help the employee. The ESI office will give an average salary to the employee for
the days he is taking leave.
4) Death Benefit
Under this scheme, on the happening of death of the employee the nominee will be
given an amount of Rs. 10,000 for meeting the funeral expenses.
6) Mentorship
A mentorship is a relationship between two people where one individual, known as a
mentor, passes on his knowledge, skills or experience to another individual who is
referred to as the mentee. The arrangement may be formal or informal, and happen
serendipitously or be planned by a third party. A mentor could be a friend, relative,
teacher or other authority figure
The concept of mentorship was brought into MRF when the industrial relationship in
some units was so worse. By implementing mentorship in those units, the situation
falls under control. This success made the corporate office to implement it in all
other units also.
In MRF Kottayam unit, the 250 staffs take the role as mentors and each mentor
allotted with 5 mentees i.e. workmen.
This year the unit asks every mentor to conduct home visit of at least one mentee.
This will help in relationship building. The staffs are asked not to consider it as a
part of routine work rather as a part of life.
Mentorship policy of MRF says that all persons have problem in their life, and all
have the capacity to solve their problems also. The mentor’s role is to help the
employees to make them identify their problems and help them in solving it.
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Objectives of Mentorship
Following are the major objectives of Mentorship:
Establishing relationship of trust: The employees must not be more Task
Oriented or must not be more Relationship Oriented rather there must be a balance
between both. There must be a long lasting relationship of trust between the
employees.
Modelling behaviour norms for the workers.
Listening to the personal and job concerns of the workers.
Helping workers to search alternative solutions for the problems.
To promote employee development through learning.
To build organisational capability through sharing and learning with others.
To build better relationship and more effective communication.
Sharing own relevant expressions.
Responding to emotional needs of the workers .
Creating awareness and clear perception on managerial behaviour and social
work culture.
Results of Mentorship
Mentorship results can be tangible or intangible results.
Following are the intangible results of mentorship:
Bring in cultural change in the organisation.
Revitalizes employee’s morale and interest in work and on management.
Revitalizes employee’s confidence and interest in work accomplishment.
Improved communication.
To inculcate ownership feeling.
Following are the tangible results of mentorship:
Reduced absenteeism.
Reduction in work stoppages.
Reduction in the number of disciplinary actions.
Increased labour productivity.
Reduction in accidents.
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7) Canteen Facilities
The canteen is also functioning under HR department. Quality food twice a day and
tea and snacks is also providing though canteen. The unit have a canteen supervisor
under the guidance of whom, the activities are smoothly running. There is also a
Canteen Committee comprising of management representatives, and the union
representatives to decide on menu changes and to maintain the standard of food
supplied. For lunch Non- Vegetarian meals is served for 6 days and vegetarian food
for one day. The unit charges Rs. 150/- every month from officers, staffs and Rs.8/-
per day from workmen.
8) Industrial Relationship
Industrial relations are used to denote the collective relationships between
management and the workers. Traditionally, the term industrial relations is used to
cover such aspects of industrial life as trade unionism, collective bargaining,
workers’ participation in management, discipline and grievance handling, industrial
disputes and interpretation of labour laws and rules and code of conduct.
In the words of Lester, "Industrial relations involve attempts at arriving at solutions
between the conflicting objectives and values; between the profit motive and social
gain; between discipline and freedom, between authority and industrial democracy;
between bargaining and co-operation; and between conflicting interests of the
individual, the group and the community”.
9) Welfare Activities
Welfare activities are being with a view to maintain good relation between
management and employees. Following are the major welfare activities undertaken
in the Kottayam MRF unit.
1) Best employee Award: This award is being given every year to the best
employee selected on various factors such as reduced absenteeism, increased
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production, behaviour etc. The award will be given by Chairman, which makes
the employees feels proud
2) Long Service Award
This award is given to those employees who served the company for a very long
time. Gold Pin will be given to employees who have 35 years of service. Silver
Salver will be given to those employees who have 25 years of service. These awards
will also be presented by the Chairman of the company.
3) Safety Committee
4) Canteen Committee
5) Safety week celebration
6) Kaizen Award Functions
‘KAIZEN’ is a Japanese word which means suggestion. This award is given to the
employee who has given the best suggestion. This is a part of Participative
Management. The employees are encouraged to given suggestions to the
management regarding the activities in the organisation.
7) Talk on relevant topics by expert resource persons
8) Medical Camp: Eye camp, determatology, PFT camps are conducted. The
employees are working in the factory where there is a greater chance of getting
infected easily. It is because of this reason such camps are being coordinated.
9) Yoga classes for employees
10) Retirement functions: When an employee is retiring from the company, a
retirement function will be properly conducted as a sign of respect for the valuable
service rendered by him in the organisation
11) Presence of management staff in workmen’s family functions like marriage,
funerals of dependents etc.
12) Promoting inter departmental sports activities involving staff and workmen.
13) Quality of life classes for employees and spouses.
14) Factory visit by spouses of employees
15) International Women’s day celebration.
16) Sports and games for employee’s children.
17) Ravi Mammen Sports Scholarship.
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18) Summer Camp for employee’s children.
19) Ladies health Camp.
20) Classes for employee’s wives regarding banking methods, soap making etc.
21) Career guidance for students
22) Mammen Mappiliai scholarship for academic excellence.
23) Sports Day for women
24) International Youth Day and Independence Day celebrations etc.
25) Family Planning Assistance.
26) Marriage gifts.
27) Hardship allowance.
28) CSR activities
- Providing scholarship to students in the local schools
- Installation of street light.
10) Disciplinary Actions
The MRF Kottayam unit is very strict in the case of maintenance of discipline in the
organisation. The major disciplinary issue is absenteeism. If an employee took
unauthorised leave for more than three days, following disciplinary actions will be
taken against him:
1) Warning 1: 1st warning will be given to the employee for taking unauthorised
leave for the first time
2) Warning 2
If the employee in spite of giving 1st warning repeat the act of taking unauthorised
leave 2nd warning will be given.
3) Charge sheet and suspension:
If the employee repeats the indiscipline, charge sheet will be prepared against him
and will be suspended for 3 days.
Still he repeats charge sheet will be prepared and suspension will be for 7 days and
for 10 days for subsequent repeations.
If the employee after all these steps till continues the in disciplinary action then he
will be awarded with dismissal
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PRODUCTION DEPARTMENT
Organisation Chart:
Following is the organisation chart of Production Department.
MRF Kottayam unit has 4 different Production Plants as follows:
1) Tyre Plant
2) Tube Plant
3) Mixing Plant
4) PCTR Plant
Total Productive Management (TPM)
It is a systematic approach to eliminate waste associated with production equipment
and machinery. TPM focuses on involving machine operator in the routine checks
and cleaning of the machine to detect problems earlier. Other areas of emphasis
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Production Manager
Tyre Plant Mixing Plant PCTR PlantTube Plant
Shift ForemenShift Foremen Shift Foremen
Organisational Study at MRF
include minimizing machine "downtime" resulting from unexpected breakdowns,
fully utilizing a machine's capabilities, and tracking life cycle cost.
Benefits of TPM
With the adoption of TPM, enterprise can benefit from the following aspects:
- Involve machine operators in basic daily maintenance tasks.
- Earlier detection of factors critical to maintaining equipment uptime.
- Attacks the manufacturing equipment losses of breakdown, set ups,
adjustments, reduced speed, scrap and rework.
- Measure impact of defects, sub-optimal performance, and downtime using
OEE (Overall Equipment Effectiveness)
- Reduce capital expenditure through equipment refurbishment and capacity
improvements.
In short the implementation of TPM can lead to significant manufacturing cost
reductions, improvement in production efficiency and allow manufacturing
organizations better placed to survive in increasingly competitive global markets.
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2.1) Tyre plant
Organisation chart of tyre plant:
Following is the organisation chart of Tyre Plant:
Process in Tyre Plant
Following are the important processes being carried out in the tyre plant:
1) MIXING
Steel belted radial tyres incorporate as many as ten different ingredients with the
rubber compounds. These compounds include antioxidants, antiozonants, curing
agents, elastomers, sulphur reinforcing agents, cobalt, magnesium oxide, rubber
polymers, calcium carbonate, zinc oxide, carbon black, and processing materials.
The compounds are prepared by mechanically mixing in a “Banbury Mixer” to
mechanically break down the rubber in an attempt to obtain a uniformly
homogenous mass which is subsequently formed into slabs of rubber that are
extruded or calendared for use in tyre building. The slabs of rubber produced are
used to calendar the body plies, chafers, cap plies or edge strips, steel belts, and all
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Area Manager
Bead/Band building Tyre Building10” Tuber
Organisational Study at MRF
other fabric components used in the tyre. Some manufacturers also use a steel
machine to produce their fabric components. Slab stock is used for extruded
components such as the sidewalls, treads, wedges and other solid rubber profiled
components.
2) CALENDARING
In the calendaring process fabric cords and steel cords are coated with rubber stock.
The rubber should be pressed between the individual twisted cord filaments which
make up the steel belts. The body plies and reinforcing strips incorporate polyester
cord that is coated in an adhesive liquid. The cord is passed between large heated
rolls of a calendaring machine. A woven fabric is similarly prepared and calendared
for the anti-chafing strips. Since rubber will not adhere to bare steel, the steel cord
wires for the steel belts are coated with a very thin layer of brass. These brasses
coated, rubber encased steel cords (multi-strand cables) become the steel belts. The
brass coated steel wire is usually purchased from outside vendors and shipped to the
tyre manufacturer in sealed containers to prevent moisture contamination. When
received by the manufacturer the wires should be stored in a temperature and
humidity controlled environment until they are coated with skim stock rubber in the
calendar. It is critical that belt wire not be exposed to moisture as it is susceptible to
corrosion during the manufacturing process, which leads to a breakdown in
adhesion. When the wires are removed from the shipping container they are placed
on roller apparatus in the creel room where temperature and humidity should be
controlled and continually monitored. The wire then passes from the creel room
through the open plant to the calendar. The distance from the creel room to the
calendar varies among manufacturers ranging from 20 to 60 feet. The area of the
plant between the creel room and calendar is not humidity and temperature
controlled so that there is a potential for moisture to accumulate on the bare wire
before it is encapsulated in rubber. This problem is exacerbated by slowdowns,
temporary shutdowns, humidity spikes, and failure to adequately control temperature
and humidity within the creel room. Once the belt wire becomes contaminated with
moisture, it becomes more difficult to obtain proper adhesion of the rubber to the
brass-coated wire. The strongest possible bond between the rubber and the belt wire
is critical in the construction of steel belted radial tyres.
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The steel wire passes from the creel room on rollers through aligning combs into the
calendar where the wires are coated with a thin sheet of skim stock rubber. The
rubber should also penetrate the steel cords for maximum adhesion. Both the
polyester cords and steel cords are cut at specified angles and widths for use in tyre
building.
3) EXTRUSION
Some tyre components are formed by extrusion of uncured rubber, including tread
and sidewall components. Extruders are both hot and cold fed systems. Typically,
extruders are barrel shaped. The material is fed into the barrel and the mixed
compound is pushed forward by a screw mechanism.
4) INNER LINER
The inner liner is a critical component of modern tyres. In steel belted radial tubeless
tyres, the inner liner is the substitute for the tube used in the older style tube tyres. It
is formulated to provide the least amount of air permeability possible while
obtaining adhesion to the body plies. This is accomplished by a combination of
gauge and halo butyl content. Inner liners are calendared into thin sheets of specified
thicknesses and then cut to appropriate widths for use in tyre construction. One
indication of inner liners that are excessively thin is cord shadowing where the cords
of the body ply show through the inner liner. Localized thinning can also be caused
by perforations in the body plies which allow inner liner rubber to flow into the body
plies of the tyre resulting in localized thinning.
5) BEADS
Bead wire configurations fall into four primary categories: .037 weft less, .050 wefts
less, .050 single strand, and cable beads. Like belt wire, bead wire is generally
purchased from outside vendors and shipped in hermetically sealed containers to
prevent corrosion from moisture prior to manufacturing. The bead wire is plated
with brass or bronze like the belt wire to provide high adhesion to the insulating
rubber. Insulating rubber is usually pressed into and around the bead when it is
drawn through an extruding die. Bead chaffer, which is rubber reinforcement around
the bead wire, is also placed in the area of the beads to give strength and resilience
during tyre mounting.
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6) TREAD
Tyre tread incorporates several special rubber compounds which are simultaneously
extruded to provide the appropriate dimensions for the specific tyre. Typically,
cement is applied to the underside of the tread where it contacts the steel belts or cap
plies. This is commonly referred to as tread cement. It is then cut into the
appropriate length for tyre building. Cement is typically applied to both ends of the
tread piece to obtain maximum adhesion.
7) TYRE BUILDING
It is important to note that most tyre companies now operate on 12 hour shifts with
tyre builders bonuses based on the number of tyres they produce over a set minimum
requirement. Most steel belted radial tyres are assembled by hand. The first stage
builder constructs the tyre on a cylindrical rotating drum. In the first stage of tyre
building process, the inner liner, body plies, beads, bead reinforcing strips and
sidewalls are assembled by the first stage tyre builder. During second stage tyre
building, the steel belts and tread are applied as well as wedges or belt edge gum
strips. If a cap ply is utilized, it would be placed on during second stage as well. The
tyre components, known as “green tyre” components, are held together mechanically
by their tack or stickiness. Prior to assembly the body plies and steel tread
components are stored in large rolls. Prior to the components being transferred to the
building machines they are often stored in this rolled configuration. Woven fabric
liners are placed between the layers of the rolled material to prevent the components
from sticking together. If the rolls of stored material are not promptly utilized, they
can lose their tacky quality. This makes it difficult, if not impossible, for the
components to properly adhere together before vulcanization. In the latter stages of
degradation, sulphur can be visualized on the surface of the components as a white
or greyish layer which is called “sulphur blooming.” Appropriate building practices
require that components which have lost their tackiness, especially components with
sulphur bloom, be scrapped. Most manufacturers, however, allow their tyre builders
to utilize petroleum solvents to “freshen” belt material or body plies that have lost
their tackiness or which demonstrate sulphur bloom. Use of the petroleum solvent
which is supposed to remove the Sulphur, but sometimes merely masks it, and can
cause pockets of trapped gas between components, and can allow the uncured
41 Marthoma College of Management and Technology
Organisational Study at MRF
components to move so that the precise alignment necessary for steel belts is
compromised unless the solvent is completely dry when the components are
assembled.
8) VULCANIZATION (Cooking or curing)
Subsequent to second stage, the green tyre is transferred for vulcanization. The tyre
is coated with a liquid to ensure that it will not stick to the mould. In the mould the
green tyre is placed over an inflatable rubber bladder. Typically, the vulcanizing
machine is a two piece metal mould. The bladder forces the tyre against the mould,
forming the sidewall patterns and tread pattern. The moulding is accomplished
through the use of steam pressure or hot water inside of the bladder. The rubber
components of the tyre are vulcanized by steam generated heat in the mould and
bladder at pressure as high as 400 psi and temperatures of approximately 200/ for
approximately ten minutes. This heat results in chemical and physical changes in the
rubber compounds. At the molecular level, profound chemical changes occur during
vulcanization. The “green tyre” rubber components are transformed from plastic
consistency to the consistency found in a finished tyre. The vulcanization process
chemically and physically links the various components, forming what should be an
inseparable bond. The smaller rubber molecules are linked to the long polymer chain
linked molecules. When the molecules in the various components properly bond, all
interfacing surfaces are obliterated forming the finished green tyre. Thus, any liner
pattern marks from the fabric liner used during storage should be totally obliterated
in a properly cured tyre. One should never see liner pattern marks on a tyre that has
been properly cured (vulcanized). Manufacturers use various time periods for the
vulcanization process. In an effort to reduce the time required for the manufacture of
a tyre, manufacturers are continually attempting to reduce the vulcanizing time. One
method that is utilized is radiation of components prior to vulcanization. It should be
noted that under-vulcanization will result in a lack of adhesion of the components.
One indication of this lack of adhesion in a failed tyre can be pattern liner marks. As
a result of vulcanization, the rubber becomes essentially insoluble and cannot be
processed by any of the means used to manipulate the green rubber during the
assembly process.
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9) FINAL INSPECTION AND REPAIR
All tyres are supposed to be visually inspected and placed on a tyre uniformity
machine (TUG) before they are sent to the warehouse. Unfortunately, the visual
inspection process sometimes lasts as little as fifteen seconds and on occasion is
nonexistent. When an abnormality is discovered the tyre is sent to classifiers who
can route the tyre to repair, scrap the tyre, or set the tyre aside for further inspection.
Repairs include buffing and grinding. If a foreign object is ground out of a tyre,
green tyre rubber is placed in the area where finished rubber has been removed. The
tyre is then spot vulcanized or repaired by the repairman so that the repair cannot be
readily seen. Some manufacturers have experienced air bubbles or blisters that can
be visualized on the inner liner of the tyre. These blisters have been repaired by
poking them with an ice pick-like device (awl) either through the tread, both steel
belts and both body plies down to the blister and then pushing the air back out the
hole produced by the ice pick device, or by puncturing the blister from the inside and
pressing the inner liner against the body plies with a hand stitchery. Neither of these
“repairs” is appropriate or satisfactory and can lead to failure of the tyre in the field.
After final inspection/repair, tyres are sent to the warehouse where tread labels are
placed on the tyre. They are then transferred to the retailer.
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2.2) Mixing Plant
Organisation chart of mixing plant
Following is the organisation chart of Mixing Plant:
Compounding and Mixing
Compounding is the operation of bringing together all the ingredients required to
mix a batch of rubber compound. Each component has a different mix of ingredients
according to the properties required for that component. Components fall into three
classes based on manufacturing process: calendaring, extrusion, and bead building.
The extruder machine consists of a screw and barrel, screw driver, heaters, and a die.
The extruder applies two conditions to the compound: heat and pressure. The
extruder screw also provides for additional mixing of the compound through the
shearing action of the screw. The compound is pushed through a die, after which the
extruded profile is vulcanized in a continuous oven, cooled to terminate the
vulcanization process, and either rolled up on a spool or cut to length. Tire treads are
often extruded with four components in a quadraplex extruder, one with four screws
processing four different compounds, usually a base compound, core compound,
44 Marthoma College of Management and Technology
Area Manager
2 K 16, F 620 BD MixingD3/D4 Banbury
Organisational Study at MRF
tread compound, and wing compound. Extrusion is also used for sidewall profiles
and inner liners.
The calendar is a set of multiple large-diameter rolls that squeeze rubber compound
into a thin sheet, usually of the order of 2 meters wide. Fabric calendars produce an
upper and lower rubber sheet with a layer of fabric in between. Steel calendars do so
with steel cords. Calendars’ are used to produce body plies and belts. A creel room
is a facility that houses hundreds of fabric or wire spools that are fed into the
calendar. Calendars’ utilize downstream equipment for shearing and splicing
calendared components. Mixing is the process of applying mechanical work to the
ingredients in order to blend them into a homogeneous substance. Internal mixers
are often equipped with two counter-rotating rotors in a large housing that shear the
rubber charge along with the additives. The mixing is done in three or four stages to
incorporate the ingredients in the desired order. The shearing action generates
considerable heat, so both rotors and housing are water-cooled to maintain a
temperature low enough to assure that vulcanization does not begin. After mixing,
the rubber charge is dropped into a chute and fed by an extruding screw into a roller
die. Alternatively, the batch can be dropped onto an open rubber mill batchoff
system. A mill consists of twin counter-rotating rolls, one serrated, that provide
additional mechanical working to the rubber and produce a thick rubber sheet. The
sheet is pulled off the rollers in the form of a strip. The strip is cooled, dusted with
talc, and laid down into a pallet bin. The ideal compound at this point would have a
highly uniform material dispersion; however in practice there is considerable non-
uniformity to the dispersion. This is due to several causes, including hot and cold
spots in the mixer housing and rotors, excessive rotor clearance, rotor wear, and
poorly circulating flow paths. As a result, there can be a little more carbon black
here, and a little less there, along with a few clumps of carbon black elsewhere, that
are not well mixed with the rubber or the additives. Mixers are often controlled
according to the power integration method, where the current flow to the mixer
motor is measured, and the mixing terminated upon reaching a specified total
amount of mix energy imparted to the batch.
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2.3) TUBE PLANT
Organisation Chart of Tube Plant
Following is the organisation chart of technical department:
Almost all bicycle tires, many motorcycle tires, and many tires for large vehicles such as
buses, heavy trucks, and tractors are designed for use with inner tubes. Inner tubes are torus-
shaped balloons made from an impermeable material, such as soft, elastic synthetic rubber, to
prevent air leakage. The inner tubes are inserted into the tire and inflated to retain air
pressure. Large inner tubes, which are large inflatable torus’s, can be re-used for other
purposes, such as swimming and rafting (see swim ring), tubing (recreation), sledding, and
sketching. Purpose-built inflatable torus’s, are also manufactured for these uses, offering
choice of colours, fabric covering, handles, decks, and other accessories, and eliminating the
protruding valve stem. Tubes are being manufactured in this plant. Natural rubber, carbon
and other chemical mix are put in the Banbury machine for processing. Tube sheets produced
are sent for tube extrusion
46 Marthoma College of Management and Technology
Area Manager
SupervisorSupervisorSupervisor
Tube curing /PackagingTube Extrusion11 D1/ 11 D2 Banbury
WorkersWorkersWorkers
Organisational Study at MRF
2.4) Pre Cured Tread Rubber Plant
Organisation Chart
Following is the Organisation Chart of PCTR Plant:
The MRF PRETREADS Advantage
Greater tyre Mileage
Better Road Grip
Well researched Tread Patterns through years of innovation and Testing
Proven Rubber Technology
Range of patterns to suit various applications
Low operating Cost
MRF PRETREADS is the most advanced pre-cured retreading system in India. MRF
forayed into retreading as far back as 1970. Today, MRF has perfected the art of re
cured retreading with its extensive knowledge in tyres and rubber.
47 Marthoma College of Management and Technology
Area Manager
2 K 16, F 620 BD MixingD3/D4 Banbury
Organisational Study at MRF
In the MRF PRETREADS system, the tread rubber is pre-cured from MRF's factory
in a carefully controlled environment, thereby ensuring world-class quality. Today,
MRF PRETREADS has emerged as the Mileage leader in pre-cured retreading and
also has the specialized expertise required for retreading Radial Tyres of Truck, Bus,
LCV and Passenger vehicle
Pre Cured Tread Rubber Manufacturing Process: Best quality natural rubber in
correct proportion with different chemicals and activators is added and the same is
mixed in the machines specially designed for the purpose and the correct size of
extruded rubber is duly cut in the required lengths.These cut rubber is sent for curing
process which is done under hydraulic press which has the dies preset with the
required ordered pattern designed for long life of the pre cured tread rubber.The
back of the pre cured rubber is slandered which is done under special machines and
supervision as this gives the necessary bonding to the tyre on which the pre cured
tread rubber is fitted. 100% physical visual inspection is done to ensure that there is
no damage to the pre cured tread rubber which is sent to the packing department for
onward dispatch to the market.
Pre cured Tread Rubber used for Cold Process tyre Remoulding : The pre cured
tread rubber manufactured are durable in quality and made with high quality
Synthetic Rubber that is helpful in offering excellent mileage and superior abrasion
resistance. These Pre cured tread rubber manufactured is available in various designs
and sizes, and are also known for their optimum physical and rheological properties.
Pre cured Tread Rubber product: Pre cured tread rubber is produced with the
finest natural and synthetic rubber, high-tech carbon black and chemicals of proven
quality. They have installed the latest & efficient hydraulic press for making of their
Pre cured tread rubber. They use best alloy moulds for giving the perfect finish to
the tread rubber. Each and every batch of Arihant oil & chemicals, rubber compound
produced has to undergo stringent tests to ensure that it is of required consistency
and specification for final product quality. Their Pre cured rubber is custom-built in
a wide variety of tyre designs and sizes, for heavy trucks, light commercial vehicles
and passenger cars. They can make the tread rubber according to customer's
requirement & specifications
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ACCOUNTING DEPARTMENT
Department policy:
P: Achieve 100% processing of Supplier’s Bills
Q: Zero supplier complaint
C: Reduce stationery cost
D: Payment release to supplier on time
S: Maintain zero accident
M: Achieve 5 suggestions from employees a year
Department Structure
Functions of Accounting Department
Following are the various functions of Accounting Department:
1) Accounts
Accounts section consists of:
- Financing
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Accounts RM Stores Engineering Stores Shipping
Senior Plant Accounts Manager
Finance Costing
Organisational Study at MRF
- Costing
Accounting year being followed in the Company is from 1st October to 30th
September. The Accounting system followed is Standard Costing. The corporate
office will give a production plan for all the units and the units will prepare
individual plan for achieving their production target. The accounts department will
prepare Production Plan as well as Revenue Expenditure Plan for the unit. Source of
Fund of the unit is the fund that they are being receiving from the corporate office.
The unit will prepare the monthly budget and the head office will credit the amount
to the account at SBT Vadavathoor and HDFC branch, Kottayam. The funds are
mainly used for the purchase of raw material, wage & salary payments, etc.
Raw Material Stores
Following are the main raw materials being used:
Rubber, carbon black, Chemicals, Fabric, Bead wire
The unit receives the Raw materials from the Company Depos. The Kottayam unit
has a purchase depot at Nagampadam, Kottayam, where rubber is purchased and
stored. When the materials are being received by RM stores, they will issue ‘Goods
Received Note ‘against the respective Purchase order and it will be sent to the
accounts section for the passing and payment of bill. The main function of RM
stores is Inventory control. Raw Material required for the next day only will be
stored so as to reduce the inventory carrying cost.
Engineering Stores: The function of this section is as same as that of the RM stores,
but in this the spare parts of the machinery are being stored.
Shipping: The tyres being manufactured in the different units have to be sent to the
company depots situated in different parts of India. There are 100 such depots. The
corporate office will send the monthly plan of how much products must be sent to
each depot by the unit. It is the responsibility of shipping department to carry out this
function of sending finished products to the Depots. For transporting the products it
requires various documents like Transfer Memo and various Forms as required by the
VAT and Sales Tax authority. The shipping department will collect all such
documents from the authority.
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FINANCIAL STATEMENTS
BALANCESHEET: As at 30.09.2010. As at 30.09.2009 Rs. Crore Rs. Crore Rs. Crore Rs. CroreI. SOURCES OF FUNDS(1) Shareholders’ Fundsa) Share Capital 4.24 4.24b) Reserves and Surplus 1686.44 1357.18 1690.68 1361.42(2) Loan Fundsa) Secured Loans 495.57 137.89b) Unsecured Loans 820.12 482.28(3) Deferred Payment Credit 46.38 51.86 3052.75 2033.45II. APPLICATION OF FUNDS(1) Fixed Assets a) Gross Block 3367.90 2734.33b) Less: Depreciation 2038.99 1800.77 c) Net Block 1328.91 933.56d) Capital Work-in-Progress 497.72 1826.63 285.01 1218.57(2) Investments 72.69 148.57(3) Deferred Tax Asset 15.00 12.35(4) Current Assets, Loans and Advances 7a) Inventories 1110.68 650.47b) Sundry Debtors 811.49 580.03c) Cash and Bank Balances 52.79 59.89d) Loans and Advances 127.29 97.99 2102.25 1388.38Less: Current Liabilities and Provisions (a) Current Liabilities 792.67 587.17(b) Provisions 171.15 147.25 963.82 734.42Net Current Assets 1138.43 653.96 3052.75 2033.45
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PROFIT AND LOSS ACCOUNT:
Year ended 30.09.2010 Year ended 30.09.2009 Rs. Crore Rs. Crore Rs. Crore Rs. CroreINCOMESales 8080.45 6141.94Less: Excise Duty 627.73 7452.72 478.14 5663.80Export Incentives 11.02 9.04 Other Income 30.95 25.36 7494.69 5698.20
EXPENDITUREMaterials 5015.31 3709.74Interest 63.10 68.92Other Expenses 1620.87 1271.74Depreciation 260.75 249.32 6960.03 5299.72Profit for the year before Taxation 534.66 398.48Less: Provision for Taxation: Current Tax 182.50 159.00 Deferred Tax (Note 3 (a)) (2.65) (18.04) Fringe Benefit Tax – 1.20 Short provision of earlier years 0.83 180.68 3.29 145.45Profit after Taxation available for appropriation 353.98 253.03 Amount available for appropriation 353.98 253.03 Appropriations Dividends Interim 2.54 2.54 Final - Proposed 8.06 8.06 Special - Proposed 10.60 – Tax thereon 3.52 24.72 1.80 12.40 Balance Surplus transferred to General Reserve 329.26 240.63 353.98 253.03Basic & Diluted Earnings per Share (in Rs.) 834.63 596.61
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Organisational Study at MRF
QUALITY ASSURANCE DEPARTMENT
Organisation Chart of Quality Assurance Department
Following is the organisation chart of Quality Assurance department:
Quality Policy of MRF
“ Is to maintain market leadership through continuous quality improvement.”
To achieve this goal, all the MRF plants and corporate office shall pay particular
attention to the following:
- Product/ process improvements by field/ plant performance monitoring and
prompt service to the customer.
- Up gradation of machinery to meet the increasing needs of the customers.
- Continuous training of all the employees in order to acquire necessary skills
and knowledge.
All the plant level, the respective Senior General Managers, General Managers are
assigned the responsibility of carrying out the quality system by collaborating with
corporate functions.
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Plant Manager
Shift Supervisors
Senior Quality Assurance Manager
Shift Supervisors
Workers WorkersWorkers
Shift Supervisors
Organisational Study at MRF
Functions of QA Department
It has the primary aim of customer satisfaction. Hence its primary duty is to ensure
that any complaint from customers should be seriously taken and should be
communicated to the concerned. And all efforts must be taken to ensure that the
requirements of the customers are met. And next function is to improve profitability
by reducing defects and waste.
Process audit, Material and product inspection are other important function of
Quality assurance department. The Basic Standard Practise is a document which lay
down the Process specification. How the process have to carry down, what are the
dos and don’ts of each process etc. The QA department checks whether the process
are being carrying out accordingly. The inferences are recorded and follow up action
is initiated whenever any abnormality is found. Special attention is paid to critical
areas and problematic areas.
It is the duty of QA department to inspect the quality of raw materials as well as
finished goods.
Whenever a product or process doesn’t meet the specification, the process will
discontinue and the product are kept held using a tag called the NCM (Non
Confirming Material). Analysis of defects and failure are done and corrective and
preventive actions are initiated so that such non conformance doesn’t repeat. All
major highlights of Quality assurance reports are discussed in weekly and monthly
quality meetings so as to make everyone aware of the situation and to initiate
permanent corrective actions. The performance of the product are recorded and
monitored on a daily basis so that any abnormal deviation can be easily detected.
Quality Assurance also initiates studies on the basis of the principle of continuous
improvement. FMEA (Failure Mode Effect Analysis) is carried out and control plan
is also prepared to ensure that the cause of failure is avoided before they happen. QA
educate workmen on quality standards as well as the consequences of not following
quality norms. Whenever new machinery is installed QA carries out the
industrialization of machinery, in collaboration with engineering and technical
department. Audit of raw materials supplied are conducted periodically to ensure
that material procured are of right quality and also to ensure that they are stored in
proper manner.
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Organisational Study at MRF
SAFETY and SECURITY DEPARTMENTS
Organisation Chart of Safety Department
Following is the organisation chart of safety department:
Safety
MRF –Kottayam strictly follows all safety norms and no fatal accidents were
reported in last many years due to the continuous efforts taken by Plant safety
committee. Periodic awareness programmes, Safety day observation and safety week
celebration keep employees vigilant round the year to comply with safety standards.
SHE (Safety Health and Environment) pillar taking care of all activities as guided by
TPM steering committee.
Increasing number of accidents involving workers has drawn our attention towards
safety measures in the factories. Accidents not only affect workers losing their
livelihood but also employers in terms of compensation to be paid to the workers.
Accidents are a significant cause of dispute between workers and management. The
Factories Act, 1948 has laid down certain measures for the safety of workers
employed in the factories. Safety measures result in improving the conditions under
which workers are employed and work. It improves not only their physical
efficiency, but also provides protection to their life and limb. Inadequate provision
of safety measures in factories may lead to increase in the number of accidents.
Safety Policy of MRF
“MRF is committed to maintain healthy, safe and environmentally responsible work
conditions in its manufacturing plants.
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Plant Head
Safety Officer 1 Safety Officer 2
Organisational Study at MRF
To achieve this goal, all the MFR plants and the corporate office shall
Minimise the impact of our manufacturing activities on the employee’s health,
safety, environment and society.
Comply with all applicable legal, statutory, regulatory and customer specific
requirements related to the health, safety and environment.
Optimise the consumption of resources without compromising on health,
safety and environment.
Continuously monitor and upgrade machinery to eliminate incidents and
minimise risks and pollution.
Continuously monitor and improve work conditions and performance related
to health safety, and environment.
Train all our employees to perform their activities in a safe and
environmentally responsible manner.
It is our endeavour that each of our employees returns home safely without injury
and ill health today and every day.”
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TECHNICAL DEPARTMENT
Organisation Chart of Technical Department
Following is the organisation chart of Technical Department:
Functions of Technical Department
Following are the functions of technical department:
1) Raw Material Testing: All the raw materials are tested and realised if they
confirm to the specifications. When the material is received, raw material stores
personnel arrange for collection of samples from the received material for testing
and will send it to testing lab along with sample transfer note. Raw material are
tested based on the BSP (Basic Standard Practise) Standard test procedure and is
57 Marthoma College of Management and Technology
Plant Head
Senior Plant Technical Manager
Shift Supervisors Shift Supervisors Shift Supervisors
Workers Workers Workers
Organisational Study at MRF
compared with the specification issued by the corporate technical. If the material
confirms to the specification, the material is realised for production. If the material
doesn’t conform to the specification, more samples will be tested and realised for
production if it is OK. If any of the re tested samples are not OK, then the material
will be sent to the corporate technical lab and the material will be accepted or
rejected based on the advice received from the corporate office. If the material is
rejected then the raw material rejected note is prepared and the material is returned
to the supplier by raw material stores.
2) Positive Recall: This is a process in which raw material and work in progress
is realised for production without testing in case of emergency. In such cases each
plant technical will issue letters to stores, production and quality with relevant
details. The work in progress and finished goods produced using that material will
be kept properly identified at all the stages till the remaining material is tested and
approval is given. Compound mixed for other units can be dispatched even before
testing is done provided the testing can be completed before the mix reaches the
other units and they start using it.
3) In Process Material Testing: In process material are tested by the technical
department as per the plan of checking whether there is any deviation from the
specification has happened either in the material used or in the plant process
4) Finished Good Testing: It is done both at both at the plant as well as corporate
level technical departments. It is done to ensure that the product confirms to the
required standards. In case of tyres, adhesion, mounted tyre dimension and cut tyre
analysis are done in the plant. For PCTR, cured dimension and weights are checked.
5) Issue of specification: Certain specifications will be sent from corporate
technical department and these specifications are being used as guidelines for the
issue of plant specifications. Based on the corporate specification, to adopt
specification for the plant processing conditions trial and error method and past
experiences are being used.
6) Process Control: Process control is surveillance, checks or tests conducted
regularly. The data generated during test and surveillance audit is used to control the
process. Changes are made if required in the specifications to achieve process ability
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targets. The changes are documented through plant change letters. If there is any
problem, the problem will be analysed for variation in raw material or process
conditions. Any deviation found will be corrected or alternative source of raw
material will be tried. Process will be repeated to check whether it is OK.
7) Finished Good Re classification: Finished goods do not confirm to first quality
norms are kept separately and are jointly inspected by production, technical and
quality assurance departments. Based on the joint decision the materials are either
send as seconds, repaired or scrapped.
8) Tool inspection which includes the inspection of various tools.
9) Design change process: Design change is a Technical Programme Opening
Report (TPOR) or a technical authorization. The necessary specification,
formulation, drawing and tools are described in it. A micro plan is prepared
whenever TPOR is to be implemented. The micro plan has to be approved by the
initiator of the particular TPOR. Necessary specification is issued and proper
communication is given to production, and quality assurance department through
intimation letter. All the relevant processing parameters observed while the project is
being done will be complied and sent to the initiator of the TPOR, the final design
review verification and validation will be done by the initiator of TPOR
10) Heat Engineering: It is a process by which we arrive at the curing specification
and fix cure time. Validation of cure time is also done periodically to find out
whether any variation has occurred in compounding properties which necessitates
changes in cure time. Blow point study and thermocouple study are normally used as
tools in heat engineering
11) Control of non confirming product: It is the responsibility of technical
department to dispose off the non- confirming material in suitable manner. Non-
confirming materials are tied with ‘red tag’ ( non confirmation tag) which contains
all the relevant details. Technical in charge review the Non-conformance and take
decision on the method of disposal and that is recorded on the Non-confirming
materials tag.
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INDUSTRIAL ENGINEERING DEPARTMENT
Organisation Chart of Industrial Engineering Department
Following is the organisation chart of Industrial Engineering Department:
Industrial Engineers integrate people, technology, and information to enhance a
globally competing enterprise. Integration refers to the ability to understand the need
for looking at broader system and scope and not focus on individual problems. Most
engineering disciplines fail to do this. Focus is on improving production systems
Analysis of the production system requires similar training, tools, and knowledge.
All production systems must perform at highest possible efficiency, best quality and
with least cost especially in a globally competitive enterprise.
Industrial Engineering relates to the following functions:
60 Marthoma College of Management and Technology
Plant Head
Senior Industrial Engineer
Industrial Engineers Industrial Engineers Industrial Engineers
Organisational Study at MRF
Quality Control
Manufacturing Processes
Plant Layout/Material Handling
Engineering Economy/Cost Estimating
Time Studies/ Labour Cost
Human Factors/ Safety
Simulation/ Statistics
Industrial engineering is a branch of engineering dealing with the optimization of
complex processes or systems. It is concerned with the development, improvement,
implementation and evaluation of integrated systems of people, money, knowledge,
information, equipment, energy, materials, analysis and synthesis, as well as the
mathematical, physical and social sciences together with the principles and methods
of engineering design to specify, predict, and evaluate the results to be obtained
from such systems or processes. Its underlying concepts overlap considerably with
certain business-oriented disciplines such as Operations Management, but the
engineering side tends to emphasize extensive mathematical proficiency and usage
of quantitative methods. While the term originally applied to manufacturing, the use
of "industrial" in "industrial engineering" can be somewhat misleading, since it has
grown to encompass any methodical or quantitative approach to optimizing how a
process, system, or organization operates. The various topics of concern to industrial
engineers include management science, financial engineering, engineering
management, supply chain management, process engineering, operations research,
systems engineering, ergonomics, cost and value engineering, quality engineering,
facilities planning, and the engineering design process. Traditionally, a major aspect
of industrial engineering was planning the layouts of factories and designing
assembly lines and other manufacturing paradigms. And now, in so-called lean
manufacturing systems, industrial engineers work to eliminate wastes of time,
money, materials, energy, and other resources. Industrial engineers typically use
computer simulation (especially discrete event simulation), along with extensive
mathematical tools and modelling and computational methods for system analysis,
evaluation, and optimization.
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ENGINEERING DEPARTMENT
Organisation Chart of Engineering Department
Following is the organisation chart of engineering department:
Engineering department functions are divided as follows:
1) Mechanical Engineering
2) Electrical Engineering
3) Civil Engineering
The main function of this department are new machinery layout preparation, erection
and commissioning of new machinery, preventive maintenance, breakdown
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Chief Engineering Manager
ElectricalCivilMechanical
Plant Head
ProjectMaintenance Maintenance Project ProjectMaintenance
Organisational Study at MRF
maintenance, condition monitoring and over hauling of machinery and other related
equipments. Erection, commissioning, operation and maintenance of utility items
like generators boilers, compressors, pumps, freezer lines and cooling towers and
maintenance of material handling systems like lift, hoist, chain block, are done by
engineering. The maintenance of equipment of pump house, and training centres are
also done.
1) Mechanical engineering
1.1) Preventive Maintenance
All equipments that need preventive maintenance are listed out. It is ensured that
equipment history and manuals are available for all the activities. A preventive
maintenance schedule is prepared after a careful analysis of breakdown in the
machine and based on the personal experience of the maintenance personnel. Annual
maintenance schedule thus prepared is divided into weekly schedule preventive
maintenance schedule for the weekly taken and the tools, manpower and spares are
arranged. Necessary clearances are obtained from planning and the machine is
realised for maintenance. The scheduled maintained are carried out based on work
instruction and experience. Then the machine is checked and handed over to
production. Based on the number and nature of breakdowns in each machine during
the year the preventive maintenance is reviewed and a new schedule is prepared for
the next year.
1.2) Breakdown maintenance
The defective machinery is identified either by production or engineering and a
maintenance request is generated. In case of production detecting the fault,
production raises the maintenance request and in the case of engineering detecting
raises the fault; engineering makes the maintenance request and arranges for the
tools, maintenance personnel and spare part. The required maintenance jobs are
carried out and the machine is thoroughly checked. If the machine is OK, then it is
handed to production otherwise necessary corrections are assign done. Every month
a down time analysis is done and permanent corrective action initiated in the case of
recurring failures. Mean Time between Failure (MTBR) and Mean Time To Repair
(MTTR) are measures adopted to track the improvement.
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2) Electrical Engineering
MRF KTM unit falls under the EHP (Extra High Power) consumer’s category.
All consumer who use 66 kV and above are included in this category. The incoming
supply for our unit is 110 KV. Normally the unit get power from Pallom substation
but they have a provision to get power from Pala substation also in case of
emergency. The total connected load of the unit is 30000 HP. The maximum
demand is 10000 KVA. For backup power supply they have 3 generator of 1000 KV
and one generator of 5000 KV capacity.
2.1) Erection and commissioning of new machinery
In case of erection of new machinery, the following procedures are followed:
A scheme is prepared with input information from corporate electrical. The required
load and existing capacity is verified and alternative source are studied. Work
schedule of prospective contractors are submitted along with their quotation. After
verifying whether the contractor is qualified to do the job, the contractor is fixed and
work will be given to him. A schematic diagram as per the standards of electrical
inspector is prepared. This is forwarded to electrical inspectorate and they in turn
scrutinize the proposal and intimate any changes to be incorporate. When this is
done, initial approval is obtained from electrical inspectorate and work commences.
After the erection of machinery is over the inspectorate will conduct an inspection. If
the conditions are satisfied then a safety certificate will be issued which states that
the machine is safe for use. The machine is to be charged only after all these
formalities have been completed. All documents related to the above process have to
be maintained. Any changes in the load requirement or usage should be promptly
communicated to the electricity board, but does not require any sanction if the total
load required remains within the contacted load. Otherwise prior sanction has to be
obtained. Periodic calibration of energy meters and half yearly electrical inspection
by Electricity board will be co- ordinate by electrical engineering section.
2.2) Preventive Maintenance (electrical)
All the equipment that requires preventive maintenance is listed out. It is ensured
that equipment history and manuals are available for all machines. A preventive
maintenance schedule is prepared after a careful analysis of breakdown in machine.
The scheduled maintenance activity is carried out on work instruction and then the
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Organisational Study at MRF
machine is handed over to production department based on number and nature of
breakdown in each machine during the year. Preventive maintenance schedule is
reviewed and a new schedule is prepared for the next year.
2.3) Breakdown Maintenance:
The defective machinery is identified either by production or engineering and a
maintenance request is generated. In case of production detecting the fault,
production raises the maintenance request and in the case of engineering detecting
raises the fault; engineering makes the maintenance request and arranges for the
tools, maintenance personnel and spare part. The required maintenance jobs are
carried out and the machine is thoroughly checked. If the machine is OK, then it is
handed to production otherwise necessary corrections are assign done. Every month
a down time analysis is done and permanent corrective action initiated in the case of
recurring failures. Mean Time Between Failure (MTBR) and Mean Time To Repair
(MTTR) are measures adopted to track the improvement.
3) Civil Engineering
Civil engineering department does the work of preparation of project proposals,
drawings and estimates as per the requirements for the construction and extension of
new factory buildings equipment foundation, plant office, construction of cables and
pipelines etc. Laisoning with government bodies and local authority for getting
approval of building plants and permits is also the function of this department.
Project is executed on item rate contracts. Finalisation of contract rates and issue of
work order are done by civil engineering department. Supervision and providing
technical support are done along with the job of recording the work done, taking
measurement and check measuring contract bills. Maintenance of all civil structures
is the function of civil engineering. Periodic repair of concrete floor, a/c sheet
roofing and maintenance of plumbing and sanitary fittings such as toilet, washing
facilities etc, de silting of water drains and annual repainting of building are the
maintenance activities. Work permits are issued to the workmen to ensure their
safety. These are done after carefully checking the conditions. The following permits
are given – height permit for working at a height above 3 meters, portable electrical
equipment permit, confined area work permit, excavation permit and hot work
permit. Once the work permit is given, proper supervision is to be ensured.
65 Marthoma College of Management and Technology
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CHAPTER- 4
Swot Analysis
SWOT analysis of MRF tyres:
Strengths
MRF is India's largest tyre manufacturing company, and among the dozen
largest worldwide. MRF holds 15th position in the global market. It exports to more
than 65 countries.
A leader in the category MRF holds the No.1 position for the last 21 years.
Extensive distribution
Good R&D initiatives
Became the first domestic company to venture into the niche area of developing
and manufacturing of aviation tyres branded ''Aero Muscle'' for helicopters and
aircrafts which targeted the defence sector
MRF scored a major breakthrough by being among the very first in India to
manufacture and market Nylon tyres.
MRF is the first Indian company to export tyres to USA - the very birthplace of
tyre technology.
MRF launched India’s First Eco-Friendly Car Tyre- MRF ZSLK
MRF was ranked highest in customer satisfaction in a study conducted by JD
Power Asia pacific.
MRF have at present 8 Manufacturing Plants spread all over India.
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Weaknesses
Cost Pressures - The profitability of the industry has high correlation with the
prices of key raw materials such as rubber and crude oil, as they account for more
than 70% of the total costs.
Pricing Pressures – The huge raw material costs have resulted in pressure on the
realisations and hence, the players have been vouching to increase the prices,
although, due to competitive pressures, they have not been able to pass on the entire
increase to the customer.
Opportunities
Growing Economy leads to Growing Automobile Industry leads to Increasing
OEM demand that in turn leads to Subsequent rise in replacement demand
With continued emphasis being placed by the Central Government on
development of infrastructure, particularly roads, agricultural and manufacturing
sectors, the Indian economy and the automobile sector/ tyre industry are poised for
an impressive growth. Creation of road infrastructure has given, and would
increasingly give, a tremendous fillip to road transportation, in the coming years.
The Tyre industry would play an important role in this changing road transportation
dynamics.
Access to global sources for raw materials at competitive prices, due to
economies of scale
Steady increase in radial Tyres for MHCV’s and LCV’s
67 Marthoma College of Management and Technology
Organisational Study at MRF
Threats
Continuous increase in prices of natural rubber, which accounts for nearly one
third of total raw material costs
Cheaper imports of Tyres, especially from China, selling at very low prices,
have been posing a challenge. The landed price is approximately 25% lower than
that of the corresponding Indian Truck/ LCV tyres. Imports from China now
constitute around 5% of market share.
With crude prices scaling upwards, added pressure on raw material prices is
expected
Ban on Overloading, leading to lesser wear and tear of tyres and subsequent
Slowdown in demand
However, this would only be a short-term negative.
Changes of automobile industry
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Organisational Study at MRF
CHAPTER - 5
FINDINGS AND SUGGESTIONS
FINDINGS
MRF ltd is the no 1 largest tyre manufacture in the country and the 13 th largest
in the world
MRF exports its products to more than 75 countries in the world
Good working environment
Training and development programmes conducted according to needs
Good Performance appraisal system
Updated technologies and methods
Environmental and quality standards with awards of recognition
Cost of raw materials affects profit.
SUGGESTIONS
Proper methods should be adopted for waste management.
Inter departmental relationship must be improved.
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CONCLUSION
BIBLIOGRAPHY
Books
[1].
[2].
70 Marthoma College of Management and Technology
Organisational Study at MRF
[3] Kothari.C.R, Research Methodology: Methods and techniques, New Age
International Publishers, New Delhi, Reprint edition, 2007
Website
www.mrftyres.com
71 Marthoma College of Management and Technology