telcon ost

TELCON AT GLANCE

1.1 HISTORY OF TELCON: (MILESTONES)

1994 – Construction Business Unit formed

1997 – Tie up with John Deere for manufacture of Backhoe loaders

1998 – New Manufacturing facility set up at Dharwad

1999 – CEBU Created into a separate Company Telcon

2000 - Telco and Hitachi sign JV for 80:20 stakes in Telcon

2000 – Agreement with Euclid – Hitachi for joint design and manufacture of

Dump Trucks.

2001 – Agreement with Bell-Equipments, South Africa for joint design and

Development and manufacture of multi utility loaders.

2002 – Agreement with Lebero .Spain for manufacture of Soil and Asphalt

Compactors.

2003 – TERPL (Telcon Eco Road Resurfaces Private Ltd.) Formed in 2003

(Holding: Telcon 36%, Hitachi 20%, Green Arm 20%, IVRCL 24%)

2005 – TATA Motors $ Hitachi sign New JV Agreement for 60:40 Stakes

2006 – Setting up of a New Plant at Kharagpur announced.

1.2 TELCON PROFILE

TELCO CONSTRCTION EQUIPMENT CO. LTD, (TELCON) is in the business of

designing, manufacturing, selling and servicing a wide range of construction equipment,

viz. Excavator, loader, and backhoe and crawler crane. It enjoys a 65% market share of

excavator.

TELCON is a 60% subsidiary of TATA MOTORS, the remaining 40% being held by

HITACHI CONSTRUCTION MACHINERY CO.LTD. (HCM), Japan.

TELCON was spun off from TATA MOTORS in 1999, but its root as a manufacturer

of Construction Equipment goes back as far as 1960. In 1985, it entered the technical

collaboration with HCM, Japan for manufacturing of Hydraulic Excavators and Cranes in

Jamshedpur, as major growth strategy of TATA MOTORS. In 1998 it started

manufacturing backhoe loaders in technical collaboration with John Deere, USA.

TELCON has its corporate office and marketing head quarters (MHO) in Bangalore. The

MHO is the hub of activities for the sale and service of OE’s and spares parts, products

supports and the functioning of authorized customer support centers and dealers. The

marketing group has it’s service head quarters in Jamshedpur, main spare parts were

house at Dharwad, Kolkata and Panvel, a marketing network of seven branch

office(BO)in Kolkata, Bangalore, Hyderabad, Nagpur, Delhi, Ahmedabad, Mumbai and

25 zonal offices at strategic locations attached to different BO’s it also has 24 dealers all

over the country.

1.3 TATA GROUP PROFILE

1) Founded in 1887 by Mr.Jamshedji Tata.

2) Turnover at 17.8bn USD for the year ending 31st March -05.

3) Highly diversified group with over 80 group companies present in several sectors

Of economic importance.

4) Leading business group in the private sector.

5) Total Group Revenues equivalent to 2.8% of India’s GD.

6) India’s largest Foreign Exchange earner in the private sector.

7) India’s largest private sector employer.

8) Strong support of over 2 million share holders.

IMPORTANT GROUP OF COMPANIES

TATA TETLY (world’s largest integrated tea operation)

TATA CONSULTANCY SERVICES (Asia’s largest software exporter)

TITAN (The world’s sixth largest brand of watches)

TATA STEEL (India’s largest private sector steel producer)

INDIAN HOTELS (Largest 5-star chain of luxury hotels in India)

TATA POWER (India’s largest private sector power utility)

1.4 TECHNOLOGICAL PARTNERS

HITACHI: Japan for manufacture of hydraulic excavators and hydraulic cranes.

JOHN DEERE: USA for manufacture of BACKHOE LOADRES.

LEBERO: Spain for VIBRATORY COMPACTORS.

CESAN: Turkey for Hot mix plants.

EUCLID: USA for off-highway dumpers.

TADANO: Japan for truck mounted cranes.

BELL EQUIPMENTS: SA for agricultural equipments.

GREEN ARM: Japan for road asphalt recycler.

HITACHI SUMITOMO: For cranes.

1.5 COMPANY CONSTITUTION

Telcon is a joint venture between TATA Motors - a member of the renowned

TATA Group and HITACHI Construction Machinery Co. Ltd., Japan with

HITACHI holding 40% equity stake.

TATA HITACHI

1.6 QUALITY CERTIFICATION

Telcon is an ISO 9001 – 2000, ISO 1400 – 1994 (JAMSHEDPUR UNIT) certified company. The plant got the ISO 9001 certification in the year 1995 and ISO 14001 in 2004.

FACILITIES PROVIDED BY THE COMPANY

Latest sophisticated manufacturing technologies.

Computerized oxy-cutting machines.

5-face milling machine.

CNC machines for gear manufacturing.

Fully mechanized paint shop.

Robotic Welding machine.

State-of-art design centre with CAD/CAM facility.

Training center.

1.7 TELCON WIDE RANGE

Telcon Office

DealerOffice

Manu-facturingFacility

RepairingWorkshop

CorporateOffice

Warehouse

ChandigarhDelhiJaipur

LuknowGuwahatiW.BokaroUdaipur

AhmedabadIndore

JabalpurJamshed-pur

DurgapurNagpurKolkata

Bhubanesh-war

RajkotMumbaiVizagPune

HyderabadGoa

DharwadChennai

BangaloreSalem

MaduraiCochin

JamshedpurDharwad

JamshedpurAhmedabad

PuneKhamamBangalore

Bangalore New DelhiBokaroKolkata

JamshedpurUdaipur

AhmedabadKhamam

PuneMumbai

GoaDharwadBangaloreChennaiCochin

PRODUCT PROFILE

2.1 HYDRAULIC EXCAVATOR

1)

MODEL: TMX 20

ENGINE: Tata 483DL

HORSEPOWER : 28 HP

Configuration BackhoeOPERATING WEIGHT 2200 kg

BUCKET CAPACITY 0.07 cum

ARM DIGGING FORCE 1300 kgf

Tata TMX20 - the smallest mini excavator in India developed by Telcon, pioneers in mini excavator technology in India. Its smallness gives it access to confined areas and makes it easy to transport. It can ply on roads if fitted with rubber shoes. A variety of attachments makes it versatile. We call it our 'Little Master'.

Available Attachments

Rock Breaker Augur

Rubber Shoes

2)

http://www.telcon.co.in/html/Products.asp?iCatID=1




MODEL: TEX 40

ENGINE: SIMPSON S325

HORSEPOWER: 40 PS@2100 rpm

Configuration Backhoe

OPERATING WEIGHT 4100 kg

BUCKET CAPACITY 0.11 - 0.14 cum

ARM DIGGING FORCES 2300 kgf

Fortify your business - All of four tons, the Tata-Hitachi EX40 is a machine ideal for trenching jobs. It is sturdy inspite of its small size. It can do small jobs with ease.


Rubber Shoes A variety of buckets

Single point ripper

3)





MODEL: EX 70

ENGINE: Tata 497 NA

HORSEPOWER: 58 PS@ 2100rpm




ARM DIGGING FORCES 3855 kgf

The 'Mighty Mini' - The population of this machine speajks of its popularity in India. It is small, fast and therefore very productive.


Ditch Cleaning Bucket GP Bucket

Trenching Bucket HD Bucket

Single Point Ripper Rubber Pads and Rubber Tracks

4)









MODEL: EX 110

ENGINE: Tata 697 NA

HORSEPOWER: 80 PS @ 2300 rpm


OPERATING WEIGHT 11,500 kg

BUCKET CAPACITY 0.65cum

ARM DIGGING FORCE 5,500 kgf


Ripper Bucket Rock Breaker

Heavy Duty Bucket Slope Finishing Blade

5)






MODEL: EX 200 LC

ENGINE: CUMMINS 6 BT 5.9C


Configuration Backhoe Shovel

OPERATING WEIGHT 20,000 kg 20,150 kg

BUCKET CAPACITY 0.91 cum 1.2 cum

ARM DIGGING FORCE 11300 kgf 12500 kgf


Ripper Bucket Long arm

Single Point Ripper Orange grab

Rock breaker Crusher

Shear Quick coupler

Slope finishing blade Leonard attachment

6)












MODEL: EX 210 LCH-V

ENGINE: Isuzua – 6 BG1T




BUCKET CAPACITY 1 cum

ARM DIGGING FORCE 12900 kgf


Ripper Bucket Long arm

Single Point Ripper Orange grab

Rock breaker Crusher

Shear Quick coupler

7)










MODEL: EX 300LC-H

ENGINE: CUMMINS 6CTA8.3C




BUCKET CAPACITY 1.3 - 1.7 cum 1.8 cum

ARM DIGGING FORCE 20,000 kgf 20,5000 kgf


Long arm Multi-drill

Rock breaker

8)





MODEL: EX 350LCH-V Super

ENGINE: Isuzu B -6SDIT



OPERATING WEIGHT 34,000 kg




Rock breaker

9)



MODEL: EX 600-V

ENGINE: CUMMINS NTA855-BC




BUCKET CAPACITY 2.3 - 3.5 cum 3.5 - 4.0 cum

ARM DIGGING FORCE 26,800 kgf 38,140 kgf


Rock Breaker

10)



MODEL: EX 1200

HORSEPOWER: 650 PS


OPERATING WEIGHT 1,11,000 kg



11)

MODEL: EX 1900

HORSEPOWER: 979 PS





12)



MODEL: EX 2500

HORSEPOWER: 1320 PS





13)

MODEL: EX 3600

HORSEPOWER: 1900 PS


OPERATING WEIGHT 348,000 Kgs

BUCKET CAPACITY 22 cu.m

14)



MODEL: ZAXIS 70 hydraulic excavator

RATED POWER: 55 PS HP @ 2000 rpm




15)

MODEL: ZAXIS 110 hydraulic excavator

RATED POWER: 85 PS




16)



MODEL: 120 H hydraulic excavator

RATED POWER: 90 PS




17)

MODEL: ZAXIS 200 LC hydraulic excavator

RATED POWER: 147 PS




18)



MODEL: 330 LC hydraulic excavator

RATED POWER: 250 PS




19)

MODEL: ZAXIS 370 MTH hydraulic excavator

RATED POWER: 247 hp @ 2000 rpm



BUCKET CAPACITY 1.15-1.86

20)



MODEL: ZAXIS 450 H hydraulic

RATED POWER: 320 PS


OPERATING WEIGHT 45100 kg 46100 kg

BUCKET CAPACITY 1.89 - 3.0 cum 2.3 - 2.8 cum

21)

MODEL: ZAXIS 470 LCH hydraulic excavator

RATED POWER: 349 HP




22)




RATED POWER: 469 PS




23)


RATED POWER: 540 PS




2.2 CRANES



1)

MODEL: Tata 320

ENGINE: Tata 697 NA

HORSEPOWER: 100 HP @ 2800 rpm

SWIN SPEED : 4.45 rpm

Configuration Crane Clamshell Dragline

OPERATING WEIGHT 21,775 kg 21,730 kg21,841

kg

LIFTING / BUCKET CAPACITY

18,145 kg @ 3.05 m

0.76 cum 0.76 cum

MAX. BOOM LENGTH 27.43 m 15.24 m 15.24 m


Clamshell Dragline

Pontoon mounting Rail mounting

Truck mounting

2)







MODEL: TFC 75

ENGINE: Tata 697 NA


SWIN SPEED : 4.2 5 rpm


OPERATING WEIGHT 25,000 kg 28,000 kg -

LIFTING / BUCKET CAPACITY 25,000 kg @ 3 m - -

MAX. BOOM LENGTH 31 m 22 m 22 m


Clamshell Dragline

3)




MODEL: TFC -280 -45

ENGINE: Cummins NT 743C

HORSEPOWER: 210 HP @ 1800 rpm

SWIN SPEED : 3.19rpm


OPERATING WEIGHT 70,480 kg 70,218 kg 70,218 kg


75,000 kg @ 3.67 m

1.91 - 2.29 cum

1.91 0 2.29 cum

MAX. BOOM LENGTH 45.72 m 33.53 m 33.53 m


Clamshell Dragline

Pile driver Piling rig

4)






MODEL: KH 500

ENGINE: Cummins NT 855 C


SWIN SPEED : 2.2 rpm


OPERATING WEIGHT 99,000 kg - -


1,00,000 kg @ 5 m

2.5 - 5.0 cum

2.5 - 5.0 cum

MAX. BOOM LENGTH 70 m - -

2.3 IMPORTED PRODUCTS


1)

MODEL : ATF100-5Category : All terrain cranesMax. lifting capacity : 110,000 kgMax. boom length + jib : 51 m + 30 m

These are imported from Tadano, Japan, world leaders in mobile cranes.

2)


MODEL : TG-500ECategory : Truck cranesMax. lifting capacity : 50,000 kgMax. boom length + jib : 40.0 m + 4.6 m

3)

MODEL : TR-500EXCategory : Rough terrain cranesMax. lifting capacity : 50,000 kgMax. boom length + ijb : 35.0m + 17.1m

2.4 NEW PRODUCTS

1)



MODEL: Z R 503 G

MAXMIMUM CAPACITY: 4040 Kg at 2.85m

BOOM LENGTH : 3.47 m – 8.31 m

BOOM EXTENSION SPEED : 4.84 m / 18 SECS

Configuration ZR 503 G

Elevation Range 1 deg - 78 deg

Swing Speed 2.5 rpm

Hydraulic System Single Gear Pump

2)


MODEL: EH 600 DUMPER

MAXMUM PAYLOAD: 35.9 TON

MAXMIMUM GMW: 56 , 911 Kg

ENGINE LOAD: NTA 14C (400 hp)

Configuration EH 600

Body Capacity (struck) 14.6 cum

Body Capacity (Heap 2:1 SAE) 21.0 cum

2.5 ROAD MAKING EQUIPMENTS


1)

MODEL : TG 14POWER : 140HPOPERATING WEIGHT : 14040Kg

2)

MODEL : VM3

POWER : 102 HP @ 2300 rpm

OPERATING WEIGHT

: 11200Kg

3)



2.6 WHEELED EQUIPMENTS

1)

MODEL : VTA 90

POWER : 102 HP @ 2300 rpm

OPERATING WEIGHT

: 9500Kg


MODEL : TATA JD 315 – V

ENGINE : TATA 497TCHORSEPOWER : 92 HP @ 2200 rpm

MAX. TRAVEL SPEED : 41.5 kmph(F), 46.3 kmph (R)

OPERATING WEIGHT : 7600 - 7900 Kgs

Configuration Backhoe Loader

BUCKET CAPACITY 0.09 - 0.35 cum 0.98 - 1 cum

ARM DIGGING FORCE 3670 kgf 4140 kgf


Rock Breaker Bottom Dump (6 in 1) Loader Bucket

Heavy-duty Bucket Single Point Ripper

V-shape Trenching Bucket Square Hole Cutting Bucket

General Purpose Bucket Ditch Cleaning Bucket

Fork Lift Attachment Crane Attachment

Extendible dipper.













2)

MODEL : TWL 3036OPERATING WEIGHT : 12185 kgRATED POWER : 135 PS @ 2400 rpmMAX. TRAVEL SPEED : 24.5 kmph(F), 18.4 kpmh(R)

Configuration Standard HD Coal / LD

BUCKET CAPACITY (heaped) 2.0 cum 1.8 cum 3.0 cum

DUMP HEIGHT 2709 mm 2709 mm 2568 mm

REACH AT MAX. DUMP HT. 1206 mm 1206 mm 1347 mm


Tyre protection chains



3)

MODEL : Multi Utility Loader

OPERATING WEIGHT : 2020 kg

RATED POWER : 25HP @ 2600 rpm

MAX. TRAVEL SPEED : 24.5 kmph(F), 18.4 kpmh(R)


CHAPTER -3

ORGANISATION STRUCTURE

MD

Deparmental Heads

Production

Sales&Marketing

SSPC

SCM

DesignDevelopment

QA

Plann ing

HR

Financing

ImprovementGroup

Component Export

CSR

Mngrs

Mngrs

Mngrs

Mngrs

Mngrs

Mngrs

Mngrs

Mngrs

Mngrs

Mngrs

Mngr

Mngrs

Asst Mngrs

Asst Mngrs

Asst Mngrs

Asst Mngrs

Asst Mngrs

Asst Mngrs

Asst Mngrs

Asst Mngrs

Asst Mngrs

Asst Mngrs

Asst Mngrs

Supervisors

Supervisors

Supervisors

Supervisors

Workers

Workers

Workers

Workers

4.1 PRODUCTION DEPARTMENT

a) ASSEMBLY SHOP

b) PAINTING AND DESPATCH

c) CNC CUTTING

d) LIGHT MACHINE SHOP

e) FABRICATION SHOP

f) TOOL ROOM

g) MATERIAL PREPARATION SHOP

h) HEAVY MACHINE SHOP

i) MAINTENANCE

A) ASSEMBLY SHOP

TARGET SETTING IN ASSY SHOP;

• COMPANY RELATED TARGETS FROM BALANCE

SCORE CARD OF DEPARTMENTAL TARGET

• EACH SMT SETS TARGETS IN THE FOLLOWING AREA

-PRODUCTIVITY INPROVEMENTS

-COST REDUCTION (DIRECT & INDIRECT)

-QUALITY IMPROVEMENTS (ASSY DEFECTS)

-CUSTOMER FOCUS (COMMISSIONING DEFECTS)

-PROCESS IMPROVEMENTS

-SAFETY & HOUSEKEEPING IMPROVEMENTS

-TRAINING & EMPLOYEE DEVELOPMENT (MULTI-SKILL)

TARGET ACHEIVEMENT PROCESS IN ASSY SHOP:

• PRODUCTIVITY IMPROVEMENT BY RE-LAYOUT

• KAIZEN

• SMT PRESENTATIONS

• COST REDUCTION PROJECTS

• SUGGESTIONS

• INTRODUCTION OF TACKLES, FIXTURES & PROD.

AIDS

• IDENTIFYING TRAINING NEEDS &ARRANGING ON-JOB&

THEORITICAL TRAINING

B) PAINTING AND DESPATCH

WORK FLOW:

REEZING OF PRODUCTION

NUMBER ALONG

WITH MARKETING

FREEZING OF PRODUCTION

DATE AS PER MANUFACTURING

CAPACITY AND MATERIAL

AVAILABILITY

THEN THE MACHINE GOES TO

THE ASSEMBLY SHOP

TESTING IS CARRIED OUT

RECTIFICATION IS DONE IF NEEDED

FINALLY MACHINE MOVES TO PAINTING

THEN MACHINE IS DESPATCHED

The machines are dispatched in 2 ways:

1) Direct sales – Big excavators , cranes like EX 1200, EX 600 are

Directly sold.

2) Dealers – Backhoe Loaders and Wheel Loaders are sold through

Dealers.

C) CNC CUTTING

CNC (COMPUTERISED NUMERICALLY CONTROL)

WORK FLOW:

RECEIVING OF THE MATERIAL

ARRANGE THE DRAWING

GET THE PROGRAM FROM DNC

(DIRECT NUMERICALLY CONTROL)

SET THE JOB

GET THE CO-ORDINATION

GET THE MEASURING INSTRUMENT

ARRANGE THE TOOLS AS PER THE PROGRAM

THEN START THE JOB AND MAKE

IT IN A SINGLE BLOCK

CHECK THE DIMENSION AS PER THE DRAWING

FILL IT IN THE CHECK SHEET

IF THE JOB IS OK

MAKE THE JOB IN

THE AUTOMATIC JOB

IF NOT OK

THEN SET THE TOOLS AS PER

DIMENSION AND MAKE IT CORRECT

IF NOT OK

THEN PUT THE WHITE MARK AND MOVE IT TO THE NC

(NON – CONFIRMATION)AREA

IF OK

SEND IT FOR NEXT OPERATION

D) LIGHT MACHINE SHOP

WORK FLOW

PREPARES A MONTHLY SCHEDULE:

WHICH MACHINE NEED TO BE PRODUCED

AND WHEN

MANUFACTURING PLAN IS SCHEDULED

ON THE BASIS OF THE PREVIOUS SCHEDULE

RAW MATERIALS ARE

SUPPLIED BY THE

SCM GROUP

THIS IS PROCESSED AND GIVEN TO

THE CUSTOMER EITHER IN LOOSE

CONDITION OR

IN AGGREGATE CONDITION

E) FABRICATION SHOP

WORK FLOW

Steel yard

Then the machine goes to the Cutting shop

MPS (Material Preparation Shop)

{Chamfering, Bending, Rolling, Straightening, Deburring}

DEBURRING

STRAIGHTENING

As per requirement Chamfering Rolling

Bending is done

Then the machine is send to the

Welding shop (automatic robot for welding)

Manual welding

Rectification is done

Finally machine moves

For painting

F) TOOL ROOM

WORK FLOW:

First job drawing is taken

Material is arranged according

To the drawing

Operation sequence is done

Self – inspection according to

The dimension of the job

Inform to the customer after

The completion of the job

G) MATERIAL PREPARATION SHOP

WORK FLOW:

According to the model, steel plates Are booked in the steel yard

From the trolley the plates are brought To the bed

There are 2 kinds of materials:-

1) Direct Materials :- It goes directly to fabrication

2) Indirect Materials :- It goes to the preparation shop where chamfering , Straightening is done. Rolling or bending is also done, But this process depends on the material.

H) HEAVY MACHNE SHOP

Jobs are brought from fabrication shop

(According to the (According to the monthly Dates from the fabrication schedule)Shop)

(The Load Planning on M/C is done)

(Tools) ( Acc to the Delivery dates)

- (In case of any Breakdowns or Urgent jobs Plan may change)

- (In case of quality problems Rectification is done)

I) MAINTAINANCE

There are 4 kinds of processes:

1) Breakdown Maintenance Process

2) Corrective Maintenance Process

3) Preventive Maintenance Process

4) Technological Up gradation of Machine Process

KEY STEPS OF THESE PROCESSES ARE IN THE FORM OF:-

1) Breakdown Maintenance Process -

: Attend the breakdown

: Trouble shooting

: Restoration

: Analysis of repetitive measures

: Take preventive measures

: Sharing the learning’s

2) Corrective Maintenance Process –

: Analysis of the malfunctioning

: Find the root cause

: Take the counter measure of the root

Cause

: Take preventive measures

: Sharing the learning’s

3) Preventive Maintenance Process –

: Selection of the machine for

Preventive maintenance

: Prepare the checklist

: Schedule the preventive maintenance

Plan

: Execution of preventive maintenance

As per the check list.

: Fill up check list and the records.

4) Technological Up gradation of Machine process –

: Brainstorming & idea of

New areas

: Identifying different

Resources available

: Arrange the resources

: Execution of job

: Knowledge sharing

4.2 SALES AND MARKETING

MARKETING OBJECTIVES OF TELCON:

Company will manufacture as per expectation.

ORGANISATIONALSTRUCTURE

MD of MARKETING& SALES

CHIEF OF MARKETING

Sr GM (SALES)AGM (BUSINESSDEVELOPMENT)

Chief sales mngr (south)

Chief sales mngr (north)

Chief sales mngr( east)

Chief sales mngr( west )

Market share should be maintained.

The leadership position should be maintained.

MARKETING CHALLENGES OF TELCON:

THE CHANNEL OF DISTRIBUTION:-

1)Cut throat

competition in the market.

2) Increased production range.

3) Lot of imported new products.

4)Competi-tors are increasing (like-JCB, L&T Komatsu,Volvo,Caterpillar,BEML,Kobelco(Ja-pan),Daewoo,Hundai)

5) Improve after sale service.

6)Improve the quality.

SMALL CLASS OF MACHINES TELCON(TJD, EX70, EX110EX200)

DEALERS

MARKET

SELLING MACHINES THROUGH SALES OFFICERBIG CLASS OF MACHINES

PROMOTION

Promotion is that marketing communication activity that attempts to inform and

remind individuals and persuade them to accept , resell , recommend or use a

product or service or idea .

PROMOTIONAL STRATEGIES OF TELCON

Customer meet road

To held shows

Participation in big exhibitions at national and

state level.

Promotional schemes to dealers , which

Include price deals, buying allowances

Etc (MONSOON MASTI SCHEME on various

Products)

Door to door selling ( through dealers or direct)

Sales meeting happens in customer’s office

ADVERTISEMENT MEDIAS

News paper advertisement

Hoarding at different locations.

MARKETING PLAN

Average Growth of sales of TELCON is 35% per year, which is

highest in India .Its plan is to work and to be committed towards the

Achievement of the vision of the company.

MARKETING EXELLENCE AWARD

Telcon gives rewards to enable superiors to instantly recognize

And reward employees’ achievements and exemplary individuals

And team behavior. KAMWABI AWARD is the way by

Which Telcon rewards the Sales Officer and Service Engineers

For their outstanding deeds.

CUSTOMER OF TELCON

MICA [Mining Infrastructure Construction and Agriculture] is the customer of Telcon. It may be big company or a small owner.

COMPLETE CUSTOMER CARE

1) Expert Diagnostics 5) Component Reconditioning

2) Breakdown Repairs 6) Annual Service Contract

3) Machine Health Checkups 7) Annual Maintenance Cont-

ract

4) Component Exchange Schemes 8) Total Maintenance Cont-

Ract

9) Machine Re- conditioning

4.3 SUPPLY CHAIN MANAGEMENT

ORGANISATIONAL STRUCTURE:

Main functions of SCM:

Is to bring components from outside the plant

And getting material from vendors globally.

AGM of SCM

Div mngr(global sourcing& Crisp implmntatn)

Div mngr (strategic sourcing)

Sr mngr(procurement –assy)

Asst Div mgr(procurement manf shop)

Asst Div Mngr(Procuremnt- New Model)

Sr mngr(General Purchase & Gate)

Sr Mngr(Procuremnt –after market)

Asst mngr(Imports &prop Item procurement

Asst Div mgr

Mngr & Asst mngr

Mngr

Asst mgr & staff

Staff/ operaters

Asst mngr&Staff

Mngr,Suprvisr,Staff

Supervisor&Staff

Asst mgr,suprvisor,Staff

Asst Mngr

Asst Mngr

Mngr,Staff, Supervisor

Asst mngr&Staff

Mngr,Staff, supervisor

Staff , supervisors

Staff, supervisors

The different types of vendors are from where the SCM receives

Components are:

Local vendors

Out station vendors

Vendors outside India

SCM objectives are:

Production in time

In the most reasonable price

Best quality

Staffs those who report the Chief of SCM:

1) Local procurement and store head

2) Head procurement and casting and forging team

3) Outstation vendors and imports

4) Sourcing Head

5) Indirect Material Head (indirect mat like – shirts, helmets, things which

are not included for production process)

Work Flow in SCM:

The design department sends the drawing Once the drawing is freezed

The best Quotation is received

Zero – based costing is done

Place a formal Purchase Order (An agreement where Telcon is giving firm confirmation through purchase order)

Then QA check is done

Then procurement function starts

Material comes in the gate

Material has to be unloaded

Then it is stored (job of the store is to maintain codes of component)

The final stage is to issue to the assembly

4.4 DESIGN AND DEVELOPMENT

Telcon Design has a prominent position in overall Telcon organization. In

order to ensure that Telcon will remain at the cutting edge in the area of

design & development, the Design function has launched new design

objectives in October 2003. It continues the sincere effort in designing of

products, in close cooperation with the other Telcon function, ABEC,

designer, suppliers and the design education programs.

The Telcon Design Sub – Council is involved in drafting the quality aspects

of Design. The goal is to ensure optimal growth conditions for the design

area in future. The quality objectives of Telcon design derived from quality

policy of Telcon are:-

1) Maximizing customer satisfaction by designing and developing reliable

and cost effective construction equipment as agreed with Sales &

Marketing / NEW PRODUCT INTRODUCTION COMMITTEE (NPIC).

2) Continuous improvement of products through quality improvement

projects.

3) Training of designers in key technology areas.

4) Implementation & practice of Quality & Environment Management

System confirming to ISO 9001:2000 and ISO14001: 2004 standards.

5) Improvement in work life through team word and participate

management.

Overall action areas of the design policy:-

1) Continued development of the new product to enable Design function to

tackle the challenges of the future.

2) Creation of State-of –the-art Design Centre through investment in Design

tools, hardware & software.

3)Creation of State-of-the-art Development Center through investment in

prototype shop & Testing laboratories in the field of structure , hydraulic ,

transmission , and electrical & electronics .

4) Promotion of the access to design information & knowledge for overall

development of Telcon.

5) Branding of Telcon Design at national levels Design at national levels

through participation in seminars & conference & association.

Design & Development of Telcon has already developed & strong & full-

fledged Design capability overt the last 30 yrs, from the time it was brought

under while Telco’s engineering Research Center in 1976.

It has developed capability to independently design and develop almost.All

types of construction equipment that Telcon manufactures today. In addition

to design & development has embarked on a very ambitious plan of setting

up in house testing facilities for testing complete machines & their

components with a view to elevate the existing Design & Development

function to a full-fledged Research & Development Center including a

prototype building shop capable of designing, development & testing the

entire range of construction equipment within a period of 3 yrs.

4.5 PLANNING

2 Major areas of Planning

PROCESS PLANNING :

Organizational chart

Se.GM(Planning and Kharaghpur

project)

Se Div mngr (Jamshedpur capital purchase&process planning)

Se Div mngr(Kharaghpur Project)

-OBJECTIVES: The objective of this process is to postulate cost

effective manufacturing processes & facilities manufacturing,

procurement and development of new parts for any Engineering change

or New Product Introduction.

- KEY STEPS OF THIS PROCESS ARE IN THE FORM OF:

a) Release of ECN, Design BOM &Technical Drawing by Design

Department.

b) Decision on Source of Supply (SOS) by Planning.

c) For SOS Manufacturing selection of raw material; if raw material is

steel then requisition for steel procurement to SCM; if raw material is

casting / forging then requisition to Sourcing;

d) For SOS Manufacturing Routing & PBOM creation, mention sequence

of operation, work center, Labour, Timing etc.

e) Approval of Routing

f) Upload in SAP,

g) For SOS Procurement, for regular parts ECN marked to SCM for

procurement action. For SOS MASOP, creation of MASOP matrix,

h) If new development, then preparation of semi finished drawing

through Production Engineering,

I) Requisition for development along with semi finished / finished

drawing sent to Sourcing,

j) Confirmation of Planned effective date and effective machine serial no.

by Sourcing,

k) Updation of Planned effective date and machine serial no.

l) Upload in SAP.

- CUSTOMER(S) OF THE PROCESS :

- Design, Manufacturing, SCM (Procurement & Sourcing), Sales&

Service Profit Center, Finance.

FACILITIES PLANNING :

- OBJECTIVES: The objective of this process is to provide adequate

Plant capacity, infrastructure and facilities of right technology at

The right time to meet growth and productivity challenges.

- KEY STEPS :

-

a) Capex consolidation of planning based on requirement sent by

All functions,

b) Item wise budgeting,

c) Finalization of Capex on discussion with MD and Functional

Heads,

d) Board approval for the capital expenditure for the current fiscal

year,

e) Updation of Budget in SAP

f) Specification finalization and floating enquiry

g) Obtaining quotation, negotiation and source finalization

h) ESR approval for procurement,

I) Procurement process including P.O.raising, drawing approval Job

tryout Goods receipt,

j) Civil Electrical contract rising.

k) Installation and Commissioning

l) Capitalization

4.6 FINANCE

AGM FINANCE

( Sr mngr) costing,MIS, indirect taxes (Mngr) Costing & MIS (Asst mngr)Pay Roll (Mngr)Vendor Payment

(Mngr)Import & Foreign payment

Mngr(vendor payment)

Asst mngr( Pay roll)

Mngr(Indirect Taxation)

Mngr( Payment ) Mngr( Incharge of Service Tax and other Indirect tax)

Finance Department is responsive for recording, classifying, summarizing of

all transactions. This department is responsible for the financial decisions

and for all transactions.

Telcon gets money from the own generation. It is a Zero-debt company. This

target was achieved by Telcon in November 06.

100% of the money comes from its own generation .Telcon uses this money

for production, sales, administration and dividends. The first and primary

way that Telcon makes money is by sales of manufacturing products.

The expenses made by Telcon are as follows:

Purchase of raw materials

Wages and salaries

Electricity power

Social welfare

Depreciation

Telcon’s investment strategy is as follows:

Expansion of plant

Set up of new plant

Acquisition of company

Set of technology

Investment in sister concerned

Internal and External factors that affects Telcon’s fiscal health:

Internal factors:

Decreasing in contribution due to increase in price of

raw materials

High fixed administrative expenses

External factors:

Competitors

Government Policies

Due to change in Economics Growth Rate

Basic financial function carried out by Telcon is:

Recording of Data

Preparation of MIS

Compliance legal formalities

Best effective uses of fund

Receivable Management( part of fund collection )

4.7 CORPORATE SOCIAL RESPONSIBILITY

OBJECTIVES: Improve quality of life of people

: Sustain a healthy and prosperous environment

: Optimize all Stakeholders’ satisfaction that

Simultaneously minimizes the business risks of the

Company and its business partners.

ORGANISATIONAL CHART OF CSR

KEY STEPS: Formation of CSR Committee.

: Identification of Key Communities.

: Baselines & Need Surveys of Key Communities.

: Priotization of Projects in dialogue with the community

And in accordance with the CSR Strategy

: Approval of Project-wise budget

: Action plan

: Implementation

: Assessment of Impact of Renewal of Baseline and Need

Surveys.

In –PROCESS MEASURES: Baseline and Need Survey’s

: Number of villages /Institution sponsored

: No. of volunteers

: Audit and Benchmarking of Corporate

DEPUTY DM

SE .DM SE . MANAGER

Sustainability Reports against GRI

Guidelines

: Social Spend

OUTPUT MESURES : Training for Social Entrepreneurship

: Number of water harvesting Tanks

Constructed

: Number of underprivileged students

Sponsored.

: Units of Blood Donated

: Number of medical camps organized

: Social Satisfaction Index

Telcon Core Values : Socially Responsible and Ethical

Behavior

4.8 HUMAN RESOURCE MANAGEMENT

Sr GM ( HR &IR)

Div Mngr (HR &IR) Asst Mngr ( HR & Admin) Asst Nngr (HR & Admin)

Sr Mngr east Mngr HR Mngr HR Asst Officer East Asst Officer East Mngr HR Asst Mngr HR

HR department of Telcon is responsible for the recruitment of

employees, induction, training, welfare activities, payment of remuneration

etc. Its purpose is to establish and maintain sound personnel relations at all

level of organization and to secure the effective use of HR.

Telcon follows the ADR system (Attract, Develop and Retain) for

employees .They attract trainees by presenting the scenario of Telcon to

them where in they present the culture , vision , mission ,growth , turnover ,

future plans of Telcon. They also attract by their salary packages. Tata brand

name is another way by which people get attracted. Telcon develop their

employees through training. Here right person is allotted with the right job

so that there is complete job satisfaction .The competency development is

also done to check the efficiency level of the employees. There are various

ways by which Telcon retains its employees .They provide compensation

packages, rewards are given to the employees so that the deserving

employees are recognized for their good performance. Various facilities are

rendered to the employees such as housing facility, medical facility,

education, communication facility, and transport and loan facility.

The basic functions carried out by Telcon HR department are as follows:

1) Recruitment : The main employment function includes recruitment ,

where techniques like interviews , tests are carried out .Training is

imparted and induction training program is also conducted .An

effective recruitment is increasingly important today .Recruitment has

other advantages such as it reduces duplication , makes it easier to

Spread the cost of new technologies (such as Internet – based

recruitment).It also produces synergies .For instance, “instead of looking for

one financial analyst, it can recruit for five positions from the same

candidate pool.” There are two types of recruitment carried out ,first is

campus where fresher are taken and another is off campus where lateral

( experienced) are taken .There are 3 types of tests carried out in first stage

those are written , GD and PI .In the second stage, medical test is conducted.

For lateral candidates directly PI is taken.

2) Training and Development :

These programs are based on the gaps between employees’

competencies and the requirement of their present or future jobs. Employees

who lack the specific skill can be directed to developmental activities

designed to teach them the missing skills, improve their performance in their

existing Job or prepare them to advance to higher level jobs in the future.

Inductions are also conducted, wherein the new employees are introduced to

the organization and procedures, rules and Regulations.

In Telcon Kirkparick model is followed for training

candidates. There are 4 levels, in the 1st level Pre-Test And Post- Test are

held, in 2nd level immediate feedback is taken Where there is an attempt to

assess the students have advanced in Skills, knowledge, or attitude .In the

3rd level on – job Performance, implementation of learning into work. The

final and the 4th level measures the success of the program or the

Impact of the program.

3) Compensation Management :

The Compensation Management manages and evaluates pay and

classification systems to allow the company to be internally equitable and

externally competitive. Compensation ‘s goal is to establish pay and

classification practices that allow the Company to attract and retain good

employees in support of organizational goals while ensuring compliance

with local, state and federal regulations. Compensation Management is an

integral part of the management of the organization. Compensation

Management contributes to the overall success of the organization in several

ways. To be effective, the managers must appreciate the value of

competitive pay, their human resources, and have an investment view of

payroll costs.

4) Rewards and Recognition :

Rewards and Recognitions are given to enable superiors to

instantly recognize and reward employees’ achievements and exemplary

individual and team behavior. In the areas like customer service, cost

reduction, Quality improvement, process improvement, innovation and

creativity, leadership n responsibility and enhancing the company

image .Kamyabi Award is the one given by Telcon.

5) Talent Management :

Under this the talent tool is identified and then it is retained.

SRATAGIC CHALLENGES FOR HR IN TELCON:

- World class proficiencies should be inculcated

- Upgrading the existing HR process help Telcon to become global.

- Communication ( Corporate or Internal Communication )

HR FOCUS FOR THE FUTURE

- Acquiring a broader range of challenge

- Develop real leaders

- Creating a cutting edge employee experience

CASE STUDY

The track frame of an excavator belonging to one if our

customers got damaged in an accident. Firstly, the insurance company

refused to pay the sum insured for. The insurance company also rejected the

warranty claim stating that the failure was due to material defect.

Secondly, the customer had purchased the machine on a monthly

basis. He used to get paid on a per hour basis for the work done by this

excavator .Against this, the lead time for the delivery of a new track frame is

1 month. The track frame has to be made in Jamshedpur and transported to

Andhra Pradesh where the customer’s machine was working. On one hand,

the customer was rebuffed by the insurance company, and on the other hand

he was faced with dire prospects of meeting his EMIs on time with a

machine which was not working.

One of the service engineers arranged for an old track frame at a

very low price from scrapped machine belonging to another customer. This

solved the immediate problem of getting the machine back on its feet

thereby ensuring the cash flow to the machine owner was not hampered and

he could meet EMI payments on time. Our service engineer also

successfully took up the issue of insurance with the higher authorities and

got them to release the payments. With this new payment and the kind of

support he received from Telcon, the customer placed an order amounting to

Rs6.5 lakhs with Telcon. Our service engineer completed the entire process

within 4 days.

VISION AND MISSION

TELCON VISION

“GLOBAL TOP 25 IN CE INDUSTRY BY 2012 ’’

TELCON MISSION

To be the most trusted partner for providing full line of

constructive solutions for Mining, Construction, Infrastructure &

Agriculture sectors.

While Dominate the Indian Market, we shall make

concerted efforts to meet our Global Ambitions.

Our Hallmark shall be our Motivated people, Strong

Partnerships at all levels, Superior Technologies and our

widespread customer support, all working in unison with

Environment and society.

QUALITY POLICY

Telcon is committed to maximizing customer satisfaction and delight.

It shall strive to achieve this goal through the continuous improvement

of its design and development, manufacture; sale and service of its

products. It shall also ensure that its products are reliable, safe,

environment – friendly and cost- effective and its services are of the

highest order.

QUALITY OBJECTIVES

Top line growth of 50% over last year.

Achieve 10% reduction in manufacturing & product delivery costs.

Generate 10% Revenue from new products

ZERO Defects during commission and 50% reduction in defects rate

up to 2000 hours.

Increase market share by 25% in Excavators 4% in Backhoe loaders

and 5% in wheel loaders.

2 % increase in :

1) CSI (Customer satisfaction index)

2) ESI (Employee satisfaction Index)

3) DSI (Dealer satisfaction Index)

4) VSI (Vendor Satisfaction Index)

5) SSI (Society Satisfaction Index)

100% Employee involvement in improvement activities at the shop

level.

Achieve Business excellence at par with 625 in TBEM.

Achieve 85% first fill availability of shares.

SWOT ANALYSIS

STRENGTHS

One of the Telcon’s greatest strength is the company’s sheer momentum. It

has never slowed down, and continues to squash competitors left and right

by being the first- or at least the most heavily promoted-in every market it

conquers. Certainly, Telcon doesn’t give up; its products may not be the best

upon first release, but it continues to improve on them year after year and

push new products out the door at an alarming rate. This persistence has

surely paid off, and Telcon definitely isn’t going anywhere.

Telcon “has created tremendous value for India” with all the innovative

products it has developed, not to mention the thousands of jobs it has

directly and indirectly created for Indians.

Another strength is that Telcon has a significant degree of employee

ownership. The reason this is considered strength is that the corporation’s

undoubtedly employees have a more dedicated sense of loyalty and

responsibility to their employee’s of a company whose financial futures are

not dependent on its fate…

WEAKNESS:

Company is lacking with a marketing department where it leads to poor

promotional activities such as advertising and sales promotion activities

OPPORTUNITIES:

There is high demand for their products in international market.

Now it’s the time for the company to enter into production of machines which

has better facilities than their competitors.

THREATS:

Competition has grown very tough with Multi National Companies.

Many new competitors are increasing.

RECOMMENDATIONS

1) Much higher utilization of capacity with better infrastructure and

providing exposure before better technologies in the market

2) Employees should be encouraged & supported to take risks and

motivated for new innovations

3) Top management should create a participative environment so that the

competent people can be involved to set higher and realistic objectives

4) Regular feedback should be given to the team members to keep them

motivated

5) A better communication system should be developed to reduce the

discrepancies.

MY LEARNINGS

As a Professional:

1) Tactfully and smartly handle situations2) To be a responsible person3) To be dedicated and honest towards my work4) To talk to the point5) Strive for perfection 6) To be attentive to details7) Team spirit8) To give respect to co-workers

As an individual:

1) Sustain hard work.2) Commitment towards the work assigned.3) Manage people effectively.

telcon ost

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