HR Project on Apollo Tyres

8/12/2019 HR Project on Apollo Tyres

1/102

APOLLO TYRES LTD

CHAPTER - 1

INTRODUCTION

Page 1


2/102

APOLLO TYRES LTD

INTRODUCTION

Apollo Tyres is one of the largest tyre manufacturing companies in India.

The company was incorporated in 1972 and commenced its production in

1977. It was the first company to receive ISO91 accreditation in Indian tyre

industry.

The company can !e traced !ac" to the 7#s when hard$nosed %&'#s and

Indian tyre ma(or dominated the tyre industry. Apollo set up its very first

manufacturing unit in )eram!ra* +erala in 1977* with a very huge production capacity

of 1,- tonnes. It was in 19,2* that Apollo formulated and put into action a series of

pragmatic pro(ect generating policies that led towards a turn around. A dynamic new

management team under the leadership of ice$'hairman and %/* %r. On"ar S

+anwar too" over the helm of the company affairs. O!(ectives were redefined and

service aggressive mar"et penetration and e0pense containment !ecame order of the

day.

Apollo Tyres td. is the leading Indian tyre manufacturing with annual

revenues of over S 3 1 !illion. In fact it is the first Indian tyre company to reach this

milestone. In 24* Apollo ac5uired /unlop Tyres of South Africa. The company has

its operations in India* South Africa and 6im!a!we with a networ" of over *dealerships in India alone. Sometime in 8anuary* the company also announced its

plans to start its operations in ungary.

%y pro(ect at Apollo tyres ltd. )eram!ra in Thrissur is a hum!le effort to

understand and comprehend its organi:ation. The pro(ect is intended to access and to

ac5uire the "nowledge regarding the functional as well as the management aspect of

the firm.

OBJECTIVES OF THE STUDY

The organi:ation study is to familiari:e ourselves with the wor"ing of various

departments for a particular period* so that one can have an e0posure to the practical

side.

The o!(ectives include;

1. To understand the organi:ational structure of Apollo tyres

2. To understand the various "ey functional areas of the company


3/102

APOLLO TYRES LTD

. To interact with managers at various levels of the organi:ation hierarchy

-. To analy:e the practical aspect in relation to the theoretical aspect of the

organi:ation

4. To gain a clear picture a!out the challenges and activities faced !y the

organi:ation

7. To o!serve the wor" culture e0isting in the organi:ation

,. To identify the strength and wea"ness of the organi:ation

9. To analyse competition within the industry.

SCOPE OF THE STUDY

Apollo Tyres* )eram!ra has all those function areas such as production*

finance* personal* and mar"eting etc. The study is focused on the functioning of each

department of the organi:ation giving emphasis to their wor"ing.

METHODOLOGY

To conduct the study* different methodologies have !een adopted. The study

was underta"en !y visiting the plant. =oth )rimary and Secondary data are used.

DATA COLLECTION

1. Primary Sor!"#

o /irect interview with the department heads

o /iscussion with the divisional heads

o Interaction with wor"ers in the company

o /ata collected !y o!serving the function of the organi:ation

$. S"!o%&ary Sor!"#

Annual reports of the company

/epartment manuals

)eriodicals* !oo"s* etc. pu!lished materials !y the company

Internet we!sites >www.apollo.com* www.google.com?

Page


4/102

APOLLO TYRES LTD

LIMITATIONS OF THE STUDY

The time period availa!le for the study was limited

The study was conducted only during the day shift and hence the

wor"ing conditions of those employees wor"ing during the evening

and night shifts could not !e e0amined

CHAPTERISATION

C'a()"r 1

Introduction @ O!(ectives* Scope of the study* %ethodology* Sources of data*

imitation of the study* chapterisation

C'a()"r $

Industry )rofile @ istory of tyre industry @ orld scenario* Indian Scenario* State

Scenario* Blo!al position of Apollo Tyres.

C'a()"r *

'ompany )rofile @ Organisational goal* istory of company* 'ompany#s

vision* 'ompany#s %ission* O!(ectives of company* corporate social responsi!ility*

Achievements* =an"s of the company. )roduct )rofile @ Truc"* ight commercial

vehicles* )assenger car radials* Carm. %ar"et )rofile @ %DC* A)OO TEDFS* 8+

industries* 'FAT* BOO/EFAD I&/IA

C'a()"r +

Organisational Structure @ Organisational chart

C'a()"r ,

Analysis of functional departments

C'a()"r

SOT Analysis @ 'ompany#s Strength* ea"ness* Opportunities G Threats

are e0plained.

C'a()"r

)orter#s five force in Apollo

C'a()"r /

Cindings* conclusion G suggestions

=i!liography

Appendi0

Page


5/102

APOLLO TYRES LTD

CHAPTER 0 $

INDUSTRY PROFILE

Page -


6/102

APOLLO TYRES LTD

ORLD SCENARIO

orldwide* the automo!ile industry is the single largest consumer of natural

ru!!er in the form of auto tyres and tu!es certain other parts and accessories. Cor

instance* 8apan#s =ridgestone 'orporation is the world#s third largest producer of

tyres. It consumes < la"h tones of natural ru!!er annually to produce 4, different

types of tyres. Italy#s )irelli SpA consumes 12 tonnes of natural ru!!er in the

production of tyres. Fconomic recession anywhere first hits this industry !efore any

other industry. Therefore* the world price of ru!!er goes through a cycle o few years

of !usts with the state of world economy.

The engineers forecast that tomorrow#s tyres will have possi!ly have inflation

with gases* which is heavier than air to prevent inflation loss. The advent of computer

has revolutioni:ed the tyre technology and tyre industry. The tyre industry was grown

to one of the largest industries in the world.

ORLD RUBBER 2 TYRE FORECASTS FOR $311 2 $31

The world tyre industry is worth around S 3 7 !illion. The industry is

mar"ed !y the presence of around half a do:en ma(or players who together occupy to

7H of the world mar"et share. The glo!al demand is to rise H annually through

211. orld ru!!er consumption is forecast to increase . percent annually to 24.-

million metric tonnes in 211. Bains will directly !enefit from solid growth in world

motor vehicle production* as well as a strong glo!al economy. 'ountries li"e the S*

'hina and 8apan dominate glo!al ru!!er consumption* and will continue to do so*

collectively accounting for more than half of the mar"et in 211. 'hina has !ecome

the leading consumer of ru!!er worldwide* following more than a decade of strong

growth in motor vehicle production and industrial goods manufacturing. The country

overtoo" 8apan as the second largest ru!!er mar"et in the late 199#s and !y 21 had

essentially caught up with the S as the world#s leading consumer. hile 'hina will

continue to e0tend that lead* the S and 8apan will remain leading mar"ets

worldwide* !ecause of their e0tensive motor vehicle and tyre industries.

Page 4


7/102

APOLLO TYRES LTD

The strongest gains are forecast for 'hina* though the dou!le digit annual

gains that characteri:ed 'hina#s ru!!er mar"et from 21 to 24 are forecast to slow

significantly as its domestic mar"et matures and motor vehicle production decelerates.

The 'hinese mar"et will !e sustained primarily !y e0panding demand for industrial

ru!!er products such as hoses* !elts and gas"ets* offsetting slower* though still solid*

growth for tyre ru!!er. A!ove average gains also are forecast for most of the

Asia)acific region* e0cluding 8apan* which will !enefit from strong economic growth

and rising motor vehicle production. In addition the growing tyre industries in these

nations will support demand for ru!!er. Among the ma(or developed regions* the

large &orth American* est Furopean and 8apanese mar"ets will all see gains !elow

the glo!al average. Fach of these regions will suffer from a wea" outloo" for theregional motor vehicle industry and competition from nations with lower la!our or

raw material costs.

MAR4ET SHARE OF VARIOUS COMPANIES

'O%)A&E %AD+FT SADF >H?

%ichelin 19.

=ridgestone 19.

Boodyear 14.4'ontinental 7.1

Sumitomo .9

)irelli


8/102

APOLLO TYRES LTD

rapidly and today its turnover is 1 million and earning an income of Ds. 1

crore per annum for e0ports. The industry had a growth rate of 11H over last decade.

Indian tyre industry comprises 12 ma(or companies* 1< minor ones and


9/102

APOLLO TYRES LTD

transportation needs tyres and vehicles. ence* this is a very sensitive industry* which

has to adopt itself to a highly volatile environment.

INDIAN SCENARIO

The origin of the Indian Tyre Industry dates !ac" to 1924 when /unlop

Du!!er imited set up the first tyre company in est =engal. %DC followed suit in

194. Since then* the Indian tyre industry has grown rapidly.

Transportation industry and tyre industry go hand in hand as the two are

independent. Transportation industry has e0perienced 1H growth rate year after year

with an a!solute level of ,7 !illion ton freight. ith an e0tensive road networ" of

OF%s? as

well as e0ports and conse5uently* offer the consumer a well diversified product mi0.

There are many other companies* some in the unorgani:ed sector and mostly smaller

in si:e* with a focus only on one or two categories of tyres* tu!es and flaps primarilyfor the replacement mar"et.

nli"e the international tyre industry where passenger car radials dominate the

mar"et* in the Indian industry commercial vehicle tyres ta"e the lead and account for

appro0imately 7H of the industry#s turnover. As a result* the growth of the entire

tyre industry depends on primary factors li"e agricultural growth* overall B/)

growth* industrial production* growth in vehicle demand and secondary factors li"e

infrastructural development* prevailing interest rates and financing options. Cor the

last 1 years* Apollo Tyres has maintained its leadership position in the commercial

vehicle tyres segment.

Although the automotive sector in India saw negative growth in the medium

and heavy commercial vehicle segments* this downward trend was in contrast to the

strong demand witnessed !y the tyre industry. ed !y replacement mar"et growth of

over 1H* the tyre industry registered a high single digit growth. The tyre industry is

highly raw material intensive and a ma(or consumer of ru!!er. ith raw material

costs accounting for 7 H of the cost of production* any change in the price of ru!!er

Page 9


10/102

APOLLO TYRES LTD

or the crude !as"et has a direct impact on the cost of production. The comparatively

sta!le raw material prices in the first half of CE 27$,* coupled with price increases

underta"en !y the industry in CE 24$7* resulted in all the ma(or players reporting

improved operating profit margins. This was after tour consecutive years of rawmaterial cost$push* !oth for natural ru!!er and crude oil$ lin"ed raw material !as"et.

The second half of CE 27$, again saw an upward trend for all ma(or raw

material prices and the same is anticipated for the year ahead. As a result* margins are

once again under pressure* even while the demand$supply situation continues to !e in

favour of the industry.

Sa5i"%) 6"a)r"# o6 I%&ia% )yr" i%)ry Adapta!ility and a!sorption

F0ports

Innovation

Indigenous and ready availa!ility

Technology progression

ide product range for diverse use

Self sufficiency and vi!rant mar"eting setup

INDIAN TYRE INDUSTRY HIGHLIGHTS

The Indian tyre industry is a 9 crore industry

The fortune of this industry depends on agricultural and industrial

performance of the economy* the transportation needs and the production of

vehicles

The tyre industry is mainly dominated !y the organi:ed sector* the

unorgani:ed sector holds away in the !icycle tyres

The ratio of natural ru!!er content to synthetic ru!!er content is ,;2* in

Indian tyres the ratio of natural ru!!er to synthetic ru!!er is


11/102

APOLLO TYRES LTD

)ersonal purchasing power

Fconomic activity

APOLLO 7i% )'" I%&ia% #!"%ario8

Apollo Tyres td. is the leading Indian tyre manufacturer* with annual

revenues of over S3 1.2 !illion >27$,?. It was founded in 197-. Its first plant was

commissioned in )eram!ra in +erala state. In 24 the company ac5uired /unlop

Tyres International of South Africa. The company now has four manufacturing units

in India* two in South Africa and two in 6im!a!we. It has a networ" of over

dealerships in India* of which over 2- are e0clusive outlets. In South Africa* it has

over 9 dealerships* of which 19 are /unlop Accredited /ealers. In early 2,* the

company announced plans to open a manufacturing plant in ungary.

Apollo Tyres td.J has !een a pioneer in the implementation of KSi0

SigmaJ among all the tyre companies in India* and is in the list of top 1-

manufacturers of the world in terms of Devenues.

12 sales* services and stoc" points

19 state offices

L !usiness partners

21 L Apollo tyre world

19 L Apollo Dadial world

14 L Tu!eless service points

4 L Apollo )aragati +endras

STATE SCENARIO

Apollo had secured Cifth place in the state of +erala. In the state of +erala

%DC has secured the first position with


12/102

APOLLO TYRES LTD

CHAPTER *

COMPANY PROFILE

ORGANI9ATION GOAL

MEou can#t stop the power of thought* nor can you stop the people !ehind it#.

Page 12


13/102

APOLLO TYRES LTD

HISTORY OF THE COMPANY

&amed after the Bree" Sun Bod* Apollo* the company Apollo Tyres has

created a niche for itself in the Indian tyre mar"et. After three decades of consisted

growth* today it is the premier tyre manufacturing company of India.

K)FO)F /FIFD I&&OATIO&

I&&OATIO&S /FIFD S''FSS

A CF OC TF /ICCFDF&'FS OD )FO)F %A/FJ

The history of the company dates !ac" to the early 7#s. In 1972* license was

o!tained !y %r. %athew T %arattu"alam* 8aco! Thomas and his associates. The

company was ta"en over !y /r. Dauna5 Singh and associates in 197. It is one of the

flagships companies of Dauna5 group. The plant is situated at )eram!ra -"ms north

of 'ochin. Total area covered was 97 acres which was !ought from the people who

stayed there at a cheaper rate. At the starting time the production capacity was -

tonnes per day.

The Apollo Tyres td. owned !y Dauna5 group of industries plays an

important role in the world tyre industry. The products include tyres* tu!es and flaps

for all "inds of vehicles. The head office of the company is at &ew /elhi and the

registered office is at 'ochin. The main mar"eting activities are concentrated in &ew

/elhi and 2 e0clusive dealers for Apollo cover the entire area of India.

/uring 1977 to 19,1 the company was under a heavy loss. The capacity

utili:ation was only to - percentages. The emphasis is given on growth* 5uality

and o!(ectives were re$defined when %r. On"ar. S +anwar too" over the company#s

affairs. 'ompany !egan to earn profits and accumulated losses of 24 crores were

wiped out within a short span of time.

Their second plant was installed at imda village at =aroda in Bu(arat* which

started production 1991 having capacity of 4.- la"h tyre per annum. This is the most

modern plant. The DG/ centre is also functioning at this location.

The third plant at +alamassery was ta"en over !y Apollo Tyres from )remier

Tyres. hile ta"ing over this plant* it was a sic" unit. After the ta"e over Apollo spent

Page 1


14/102

APOLLO TYRES LTD

a large amount in moderni:ing the plant and now it is a profit earning unit. The fourth

plant was commissioned in 1994 at )une for manufacturing tu!es. The entire

re5uirement of tu!es for all plants of Apollo is done from here.

In truc" tyres it has more than Ta!le no


15/102

APOLLO TYRES LTD

I%&ia N") Sa5"# Tr%o:"r FY $33,-3; Ds. 24.< !illion >22.


16/102

APOLLO TYRES LTD

in the developed mar"ets. India is leveraging its cost competitiveness to emerge as a

ma(or player in the segment of industrial tyres.

ead uarter ; Burgaon

)lants ; =aroda* 'ochin >2?* )une

6onal Offices ; =angalore* +ol"ata* /elhi* 8aipur

G %um!ai

Dedistri!ution centre ; =aroda* 'oim!atore* /elhi* Ichapuram*

Indore*8aipur*u!s in +ol"otha*

Buahati and )atna.

owever* the large and growing domestic mar"et has meant that the e0port

portfolio has always contri!uted a smaller portion of revenues. This is more so giventhat reali:ations are !etter in the domestic mar"et.

In recent years* e0ports have !een a growth area for Apollo Tyres* even

though it comprises only ,H of overall revenue. )roducts e0ported primarily include

truc" !ias* light truc" !ias and passenger car radial.

The "ey e0port mar"ets include South America* Africa* %iddle Fast and

South Fast Asia. Inroads are now !eing made into Furope and Australia with high

performance passenger car radial tyres. Apollo tyres recently ac5uired /unlop tyres

South Africa and started its operation over there.

DREAM OF APOLLO

To !ecome a 9 crore company !y the year 21

COMPANY VISION

KA significant player in the glo!al tyre industry and a !rand of choiceproviding customer delight and continuously enhancing sta"eholder valueJ

COMPANY MISSION

KTo !ecome a S/ 21 million company !y the year 21J

KTo create the first Indian Singles Brand Slam 'hampion !y the year 21,J

OBJECTIVES OF THE COMPANY

igh volume* high mar"et share* cost effectiveness in all segments.

igh 5uality* technically superior products.

Page 14


17/102

APOLLO TYRES LTD

'onsistent production through harmonious industrial relations.

Achievements of customer delight through !enchmar"ing glo!al practices.

Strengthen supply chain management.

Devenue growth.

Operating margin improvements.

Fmployee satisfaction.

HUMAN CAPITAL

a!our &o. of people

%anagement staff 21Ta!le no Ta!le no


20/102

APOLLO TYRES LTD

awareness and solutions to the pro!lems effecting those mem!ers of the pu!lic that

are in closest contact with the company$ the truc"ing community. Crom then on* the

'SD activities have e0panded to include women* children and the disadvantaged* in

colla!oration with &BO#s and other e0ternal agencies.

The current and planned 'SD programs are primarily focusing on health and

education* in !road alignment with %illennium /evelopment )rograms of &/). All

programs* e0cept I$AI/S* are currently in the domestic mar"et. As the

geographies of operations e0pand* 'SD programs will !e underta"en after due needs

assessment of the location. Some of the planned activities will re5uire local &BO

support.

I$AI/S initiative is the !iggest an most comprehensive programs at

Apollo. The organi:ation recogni:es it as a development and wor"place issue

and has a detailed action plan covering "ey sta"eholders. Apollo Tyres ealth

'are 'linics >for customer#s i.e. truc"ers? have !een esta!lished in and around

cities li"e ttar )radesh* Tamil&adu* %aharashtra* Da(asthan* &ew /elhi* and

other large transportation hu!s in India. Dun !y 5ualified doctors* counsellors*

pharmacists* and outreach wor"ers* the 'linics focus on diagnosis and

treatment of se0ually transmitted diseases* condom promotion and effective

communication to promote !ehavioural change$ or"place programs

>employee? in India and SA. Training and leveraging supply chain in ta"ing

the message forward in line with Apollo Tyre#s commitment to capacity

!uilding. Sample surveys were also carried out to record the "nowledge*

attitude* !ehaviour and practices.

Fmergency %edical Services >F%S? around our manufacturing locations in

India.

Fsta!lished highway rescue pro(ect in Bu(arat and city F%S in

adodara

)lan to launch in +erala.

ealth 'amps G %edical assistance in the villages surrounding the

manufacturing location generate awareness a!out deadly diseases li"e

IAI/S* %alaria* T=* 'hic"engunia* etc. ealth camps on IAI/S* T=

Page 2


21/102


22/102

APOLLO TYRES LTD

/unlop* South Africa has launched the Mar on aste# campaign* a company

@wide initiative to responsi!ly dispose all waste generated in factories and

offices* in an effective and environment friendly manner.

Steam energy to replace use of D&B under an agreement with BAI. The

pro(ect* !ased on aste eat Decovery System from BAI#s Bas Tur!ines

e0haust* is conceived as a 'lean /evelopment %echanism >'/%? pro(ect

under +yoto )rotocol. This initiative would ena!le Apollo Tyres to generate

% of power and allow the two companies to save around 9/epartment of Transportation* SA?

F'F 'ertification

In$%etro >=ra:il? 'ertification

SASO >Saudi Ara!ia? 'ertification

ISO 91 'ertification

Initial capacity of the )lant ; 9 tonnes per day

F0isting capacity of the )lant; including contract employees?

GOLDEN ACHIEVEMENTS OF THE COMPANY

Page 22


23/102

APOLLO TYRES LTD

Apollo Tyres td. )eram!ra unit was ran"ed the first among large scale

industries for productivity and energy conservation in the year 22$2< !y

+erala state in year 2- G 27 at productivity council

Apollo Tyres received the pollution control award !y the central government

during the year 2Octo1 199-?

One of the few tyre manufacturers with S 9 certification >%arch 21?

'onsistently rated as e0cellent in 5uality audit !y colla!oration %S

continental AB

%anufacturing facility and tyre testing la!oratory certified !y MInmetro# of

=ra:il

BAN4S OF THE COMPANY State =an" of India

=an" of India

=an" of =aroda

)un(a! &ational =an"

State =an" of %ysore

State =an" of )atiala

State =an" of Travancore

I'I'I =an" td

nion =an" of India

A(o55o "y &i66"r"%)ia)io% )o o)'"r 6irm#

Superior product 5uality

Strong !rand e5uity

'ommitted mar"eting team

igh consumer loyalty

Page 2


24/102

APOLLO TYRES LTD

)roduct segmentation in truc" tyres

=enched mar"ed for planning efficiency parameters

)ower consumption

uic" response to mar"et needs

east scrap generation.

MILESTONES OF APOLLO TYRES

1972 The companyQs license was o!tained !y %r %athewT %arattu"alam* 8aco! Thomas and his associates.

197 The company was ta"en over !y /r. Dauna5 Singhand his associates.

197-

April 1


25/102

APOLLO TYRES LTD

oadstar Super Bold

+ai:en -

oad G %ileage

Technology

NT 7

NT 7 aulug NT7 Bold

Amar

Amar /elu0e

'ommando

+ai:en Ta!le no


26/102

APOLLO TYRES LTD

Tu!e Type Dadials Cor)assenger 'ar

Amar

Ama:er N

uantum

Tu!e Tyre Dadial Cor

% G S

Amar

Ama:er N Storm

aw"s

)assenger 'ar G 8eep =ias Armour

)anther

Bripper %aha Trooper

>Ta!le no


27/102

APOLLO TYRES LTD

Apollo tyres is the second largest in the Indian tyre industry* with a mar"et

share of 22H in terms of revenues* and largest player in the T G = segment* with

around 22H mar"et share and ,2H of its product

mi0 coming from this segment. It also en(oys a strong !rand recall. AT derives ,H

of its revenues from the replacement mar"et. AT is a strong player in the domestic

mar"et* with (ust 2H of sales coming from e0ports.

*. J4 I%)ri"#

8+ industries have a 17H mar"et share* in terms of revenue ma"ing it the

third largest player in the industry. The company ran"s first in the %' and

)assenger 'ar Tyre segments with 79H and 7H of its product mi0 coming from these

segments respectively. F0ports account for appro0imately 17H of its gross sales.

+. CEAT

'FAT has a 1H mar"et share in terms of revenue and is an average

player.4,H of its product mi0 comes from %' segment. Its leading !rands in the

T G = segment are ug N* %ile N and Du! N* Secure in two wheelers and

Cormula @ 1 in passenger radials. In terms of profita!ility* 'FAT has lower margins

compared to its peers* in spite of deriving 4H of its revenues from the replacement

mar"et.

-. Goo&y"ar I%&ia

Boodyear India with its presence across the glo!e has a mar"et share of 4H in

the Indian Tyre Industry in terms of revenues. It has a significant mar"et share in the

tractor tyres segment* with 22H in tractor @ front tyres and a


28/102

APOLLO TYRES LTD

CHAPTER - +

ORGANISATION STRUCTURE

Page 2,


29/102

APOLLO TYRES LTD

ORGANISATION STRUCTURE

'hart no; .1

Page 29


30/102

APOLLO TYRES LTD

CHAPTER 0 ,

FUNCTIONAL DEPARTMENT

1. PURCHASE DEPARTMENT

Page


31/102

APOLLO TYRES LTD

The main function of purchase department is to provide right material at right

time in right place at right 5uantity.

STRUCTURE OF PURCHASE DEPARTMENT

>'hart no -.1?

This department is concerned with the purchase of !oth indigenous and

imported materials. It covers procurement of indigenous Fngineering and

miscellaneous items other than raw materials. This department is headed !y senior

manager and under him there are a num!er of officers and staff. The department is

provided with the latest communication facilities and computers.

The main items of purchase are;

Fngineering spares

'onsuma!les

Curnace oil

/iesel

'hemicals

u!ricants

Some raw materials

Page


32/102

APOLLO TYRES LTD

The purchase may !e corporate purchase or plant purchase. nder corporate

purchase the raw material is purchased after considering what the mar"et re5uire for

the month. nder plant purchase* purchase may !e of stoc" item or of non stoc" item.

Stoc" items are purchased for regular use. They are having material codes.

They are purchased after considering the reordering level* reorder 5uantity* lead time

etc. Cor non stoc" items there is no regular purchase. /ifferent departments have to

prepare purchase re5uisitions. The items purchased are engineering items* oils and

lu!ricants* local raw materials* import of spares etc.

O"!)i:"#;$

To ensure continuous availa!ility of material.

%a"e purchase at most economic price.

/evelop good supplier relation.

Fnsure alternate source of supply

Fnsure 5uality products to reduce wastage and material loss.

1. )urchase re5uisition is formed

hat re5uired

here re5uired

ow much re5uired

2. endor analysis !ased on

uality

)rice

Time of delivery

Pr!'a#" Pro!"##;-

1. Deceiving purchases re5uirement.

2. Fnsuring sources of supply and choosing suppliers.


33/102

APOLLO TYRES LTD

V"%&or #"5"!)io%

This includes a list of steps involved in selecting the right vendor for stac"

items identified as critical !y the department to ena!le a smooth functioning of theplant. endors are generally identified as

1. %anufactures

2. /ealers

i(m"%) Ma%6a!)r"

The O%F shall !e identified as a vendor for the supply of e5uipment* spares*

components etc.

$.OCM 7Ori?i%a5 Com(o%"%) Ma%6a!)r"#8;

Cor all spares* components and consuma!les* attempts are made to identify the

manufacturer and source the items directly from them so as to get 5uality products or

services at optimum cost. Information availa!le on supplier#s manuals* catalogs*

details availa!le on the nameplates of machines etc shall !e used for the purpose.

The capital purchases and raw material purchase is done through centralised

purchasing i.e !y the corporate office situated at &ew /elhi. Fach item of the

engineering stores will have a serial num!er along with code num!er. They are

identified with that num!er.

The products to !e purchased are automatically generated !y the help of

computer and this process id called %D) >%aterial De5uisition )lan?.A reorder level

will !e fi0ed for each and every item >spares? and whenever the stoc" is !elow the

reorder level the %D) will !e run and the order is placed to the vendor >supplier?.

The purchase order will !e placed for the total 5uantity i. e if the stoc" is 1 and the

reorder level is * out of which , were ta"en to the plant then the order will !e placed

for entire 1 items and not !alance , items. At this stage the stoc" will !e a!ove the

actual stoc" i. e 12 as a!ove situation.

hen the goods for purchase are without product code then these items are

purchased when the re5uired departments will have to place the order manually. Thepurchase department will ta"e decision on such purchase order !y calling a meeting.

Page


34/102

APOLLO TYRES LTD

And if the decision is ta"en regarding the order then a tender will !e issued for the

purchase of goods. The lowest rate 5uoted will !e fi0ed. The products so purchased

will have to !e collected !y respective departments manually from the factory gate

>other purchase items i. e items with product code will !e unloaded at respective

departments?.

On receipt of the goods the respective department will have to prepare a goods

receipt >BD? and should !e send to purchase department.

PURCHASING RECORDS

)urchase Order Decords Decord pf all materials purchased

endor Decords ist of all vendors* their mailing address*and other details.

=lueprint and

Specification Decord

/rawing

%any items are purchased !y !lueprint

specification and are "ept in separate files

with inde0 showing their location and

where the copies have to !e send.

'ontract Ciles 'ertain goods may !e !ought under a term

contract. In such cases the purchase

department must maintain a record of such

contracts.

Ta!le no -.1

2. STORES

Page


35/102

APOLLO TYRES LTD

FLO OF AUTHORITY

DA&+ /FSIB&ATIO& /TE TO =F )FDCOD%F/

1 %anager %anagerial functions

2 Associate %anager

Stores

'oordinate all activities of various

stores li"e D%S* CBS A&/ F%S.

'oordinate with transporters supply

chain management of /elhi depot*

e0cise and OF customers.

< Sr. Officer stores /espatch and receipts of in and out

various materials.

8r. Officer Deceipts and related documentation

of incoming materials- 8r. Officer /espatch documentation and

account "eeping

Ta!le no -.2

RA MATERIAL STORES

Pro!"##;$Deceipt handling* stores* pac"aging* forwarding and delivery of material

to internal and e0ternal customers with proper documentation to meet their

re5uirements.

Pr(o#";$To supply right material in right time to produce right 5uality product

without any interruption.

S!o(";$Deceipt* handling* storage and issue of raw materials and to the customer.

SIPOC

S @ Supplier R 'orporate purchase.

I @ Input R Daw materials.

) @ )rocess R Deceipt handling* storage* preservation G issue of raw materials.

O @ Output R 'onfirming D% receipt* storage G delivery.

' @ 'ustomer R %anufacturing* mi0ing centres other unit of AT G internalcustomers.

RA MATERIAL HANDLING PROCESS

1. erification of documents at security gate @ The security officers will chec" the

various documents li"e

Page


36/102

APOLLO TYRES LTD

Serial num!er

Suppliers name

/escription of item

Truc" registration num!er

/ate and time of arrival

/ate and time of departure

2. eightment of the truc" is ta"en after passing the gate. A computeri:ed

weighment machine is maintained.


37/102


38/102

APOLLO TYRES LTD

VERIFICATION OF DOCUMENTS AT SECURITY GATE

The security inspector at main gate shall verify all documents pertaining to the

consignments !rought to the factory !efore allowing entry in to factory premises and

note the following details. Serial no* suppliers name* description of item* 'hallan

5uantity* challan 5uantity* challan no and date or D no and date* truc" reg no* date

and time arrival* date and time departure.

EIGHMENT 7BY THE COMPUTERISED EIGH BRIDGE8

Security shall inform raw material stores a!out the arrival of the vehicles at

the gate. The security guard and a representative from D%S shall record weighment

of truc" (ointly. The weighment slip shall indicate the following;

Serial no* time and date of receipt* suppliers name* gross weight with

materials* SID no and date. After recording the a!ove details in the computerised

weighting !alance the vehicles shall !e directed to the respective unloading !ay. In

AT weighment will !e done in a weigh!ridge closer to the factory under the

supervision of security and D%S personnel after ensuring that the weigh !ridge

posses a valid certificate from weight and measure department.

=oth security and D%S personnel shall sign on the computerised weighment

slip. One copy of the weighment slip will !e filed in D%S along with concerned

delivery challan and the second copy will !e returned !y security department.

VERIFICATION OF DOCUMENTS AT RMS

The receipt in charge shall verify the documents to ascertain the no of

pac"ages* description of material code and weight of the material. If any discrepancy

is found the same shall !e orally reported to the officer concerned !efore unloading.e in turn will ta"e decision suita!ly. The dispatch documents include; /elivery

challan invoice* sales ta0 papers* pac"ing list and duplicate copy for transporters of

invoice for availing %O/AT credit. In case of non receipt of any of the a!ove

documents the consignment will not !e unloaded unless and otherwise instructed !y

the competent authorised after compliance of all conditions stated a!ove* the materials

will !e unloaded as instructed !y the receipt in charge and lead to the respective area.

Page


39/102

APOLLO TYRES LTD

HANDLING STORAGE AND PRESERVATION

All the incoming materials e0cept the materials coming in tan"ers will !e

unloaded manually or with the help of for"lift as instructed !y the receipt in charge.

'aged pallets or platform pallets are used for storing of materials so far as possi!le to

facilitate easy handling at the time of issue. Fach caged pallets will carry a ma0imum

of 1- "g of materials. 'aged pallets will !e stac"ed one over the other.

PRESERVATION

'ar!on !lac" and chemicals are stored in the 2ndfloor* natural ru!!er S=D*

wa0 etc in the 1stfloor and fa!rics* !ead wire* late0 etc in the ground floor. In case of

space constrains in the respective floors* the respective floors* the materials may !e

"ept in the ground floor and other places as directed !y the storage in charge.

%aterials received in tan"ers* after chec"ing the seal and dip reading and sample test

!y A will !e directly pumped into the storage tan". =efore unloading the receipt in

charge will ma"e sure the availa!ility in the storage tan".

De(ection items are identified !y displaying a re(ection tag !y technical

department. In case of re(ection of voluminous 5uantities the materials are "ept in

respective areas till disposal* while small 5uantities will !e removed and stored in the

re(ection area duly displayed with the re(ection tag.

ENGINEERING STORES DEPARTMENT

Fngineering goods stores is responsi!le for storing the necessary spare parts*

components re5uired for smooth functioning of the plant. On receipt of indent from

production department* the engineering stores arrange for its release. The inventorymanagement techni5ue used is F/ Analysis. Almost all the activities of this

department are computeri:ed. The purchase department is initiated whenever reorder

level is reached. A !uffer stoc" is always maintained in the store. Another system

followed in the engineering stores is %I @ endor %aintain Inventory. In this the

vendor supply the raw material in large 5uantities and payment is made only for

consumed items.

The engineering store "eeps record and stoc" of engineering materials andconsuma!les. The actual stoc" and item list are maintained !y the computer. The

Page


40/102

APOLLO TYRES LTD

various types of items in the engineering store are tools* glows* mas" etc which are

re5uired for the wor" to progress.

A reorder level is maintained for each item and when the stoc" is either e5ual

or less than the re order level the computer will automatically place the purchase order

!y running the %D) >material re5uisition program?.The purchase department will see

to it and place s the order to the regular suppliers. If new suppliers enter the mar"et

the !est 5uoted price will !e ta"en. The materials to the engineering department will

!e sealed !y the security at the gate and the actual stoc" and order will !e verified. If

the materials received is correct the goods received receipt is prepared and sent to the

purchase department. If there is any shortage then it is also informed to the purchase

department.

ENGINEERING MATERIALS

The total num!er of item codes in engineering stores is


41/102

APOLLO TYRES LTD

Cinished goods stores >CBS? is the place where the final goods are stored from

where these are ta"en away from the plant. All finished goods after final inspections

are "ept at the transferring area in each shift. The staff of final finishing will prepare a

finished goods transfer note in triplicate which will !e countersigned !y the staff of

CBS TTC. After verification finished goods transfer note will !e serially num!ered

and have the following details.

%aterial code

/escription

uantity

The original copy of the transfer note will !e issued to central e0cise wing

after entering the details in stoc" statement* duplicate will !e given !ac" to theproduction as their file copy and triplicate will !e issued the production planning.

One staff each from production and CBS TTC will separately verify 5uantity* si:e*

ply rating

R"mo:a5;

The finished goods re5uired for dispatch "ept at the transferring area* after

preparing the transferring notes* will !e removed to the loading !ay and !alance will

!e removed to stores for storage* after completing pac"ing for re5uired item.The various processes to !e performed for handling* preservation and storage are

listed !elow;

a? Application for &on @ OD >&on Original F5uipment?

Cinished goods stores is fully covered and protected from sunlight and rain water.

Tyres are rolled from transferring area to the stores and stored on si:e wise. Fach

stac" with ma0imum of ten for truc" tyres* , for DT and 12 for Tpassenger.

All tu!es are pac"ed in /)F !ags and !ought to the storage area directly !y tu!e

production.

Claps are !undled and transferred using trolley.

All seconds tyres stored in CBS are identified using a white !and and tyre using a red

!and.

A stoc" statement is made as on the closing of the day. This is made !ased on the

receipt and despatch.

After preparing the stoc" statement the finished goods transfer note is transferred overto factory e0cise wing for recording and filling.

Page 1


42/102

APOLLO TYRES LTD

!? Application for OF >Original F5uipment?

Truc" OF tyre if not despatched within 2 hrs should !e stac"ed in the warehouse.

=ottom most tyre will !e stac"ed with tu!e value facing upwards and for others with

tu!e value facing downwards >same practice is followed while loading the tyre in

truc" also?.

CICO system is followed

Truc" inspection is carried out !efore loading the tyres.

In case of higher inventory levels it is not possi!le to store all the tyres in the godown*

temporary sheds will !e restored for storing those tyres.

Stoc" levels of CBS are controlled !y supply chain management at head office level.

/ISTDI=TIO& OC CI&ISF/ BOO/S

%ain responsi!ility is for the head of department.

Supply chain management department give the despatch schedule day to day !asis.

/estination to which truc"s are re5uired is arranged day in advance.

oad slips are prepared as per the plan made.

Stores men will "eep the loads as per the load slips at the loading !ag. Staff of CBS* security and representative of transported will chec" the loads.

After chec"ing the load* slip will !e signed !y the staff and given for preparing

transport documents and goods will !e loaded on to the orries.

The lorries will !e inspected for cleanliness of the platform to ensure that there are no

items which will damage or dirty the tyres. All truc"s are despatched to outstation are

covered using tarpaulin and tied safely !efore leaving the factory premises

/espatch documentation is made.

Sales ta0* road permit are handed over to the transporters.

Invoice distri!ution

a? Original @ =uyers

!? /uplicate @ Transporter

c? Triplicate @ Assesse

d? uatriplicate @ F0tra copy

ist of serial num!er of tyres !eing despatched will !e provided when ever necessary.

Page 2


43/102

APOLLO TYRES LTD

All documents re5uired for transportation are prepared and handed over to the

transporters after getting paper ac"nowledgement and lorry receipt from him.

All finished goods after final inspection are "ept at the transferring area in each shift.

The staff of final finishing will prepare a finished goods transfer note in triplicate

which will !e countersigned !y the staff of CSB. After verification finished goods

transfer note will !e serially num!ered and have the following details;

Deceipt

%aterial 'ode

/escription

uantity

Demoval

The original copy of the transfer note will !e issued to central e0cise wing

after entering the details in stoc" statement* duplicate will !e given !ac" to production

as their file copy and triplicate will !e issued to production planning. One staff each

from production and CSB will separately verify the 5uantity* si:e* ply rating of the

finished goods and compare against the entry in the transfer note.

The finished goods re5uired for dispatch "ept at the transferring area* after

preparing the transferring notes* will !e removed to the loading !ay and !alance will

!e removed to stores for storage* after completing pac"ing for re5uired items.

Page


44/102

APOLLO TYRES LTD

*. HUMAN RESORCE DEPARTMENT

uman Desource and Administration department is one* which facilitatessmooth wor"ing of the organisation !y loo"ing into the human resource side

and also the overall administration of organisation.

D department is divided into three sections namely Industrial and

)ersonal Delations* Security and Administration. eads of each section are in

direct contact with the department head. Among the three sections Industrial

Delations is the !iggest section having four su!sections loo"ing into )ersonnel

and Industrial Delations* Fmployees Arrival and /eparture* Time * ealth and

Safety.

VISION OF HR DEPARTMENT

Our D vision is to !e a strategic partner to the !usiness and create

value for the organisation !y developing the human capital.

MISSION OF HR DEPARTMENT

To create D policies and process which are employee friendly.

To !uilt a culture which is warm forthcoming and professional with a

sense of ownership and pride.

To encourage innovate thin"ing.

To encourage transparency and teamwor".

To develop leaders at all levels with general mar"eting s"ills.

To create a learning organisation.

To develop competencies and s"ills through training and development.

To constantly raise levels of employee productivity.

To create D !rand.

Page


45/102

APOLLO TYRES LTD

To wor" towards a attaining and sustaining the !est the !est employer

status.

STRUCTURE OF HR DEPARTMANT

C'ar) %o ,.$

The ma(or functions of D /epartment1. Decruitment.

2. Selection.


46/102

APOLLO TYRES LTD

1. RECRUITMENT

Decruitment is done through advertisement and a good opportunity is

given to the child of wor"er. This increases family loyalty towards the

company. They are call for the interview and the 'hief e0ecutive ta"es the

final decision.

$.SELECTION

a. Ma%a?"m"%) #)a66.

Technical @ =. Tech* Braduate Fngineer trainee.

&on technical @ 'AI'A%S%=A%A >)%?; F0ecutive Trainee.

After training* they are a!sor!ed as officer.

'riteria include.

'onsistency in academic performance.

Broup discussion.

)ersonal interview.

. Em(5oy""!'i5&r"% #i55 &":"5o(m"%) #!'"m".

Three year production apprentice.

One year training in production.

/ependant of employees.

%inimum 5ualification $,thstandard.

)hysical fitness >height$14,'m* weight$-+g? .

!.I%&!)io% P5a%.

or"ers $ 2 days induction training.

Associate managers $ 7 days.

Page 4


47/102

APOLLO TYRES LTD

%anagement staff $ 1- days to 1 month.

*.TRAINING

The organisation provides training for !oth managers and

wor"ers. Training program for managers consist of !oth internal and e0ternal

program. A three dimensional s"ill frame wor" is used to identify the training

needs of wor"ers as conceptual s"ills* functional s"ills and human s"ills.

T'" )rai%i%? #y#)"m i%!5&"#

&eed identification.

Setting o!(ectives.

Training design.

Training implementation.

Training evaluation.

Training impact assessment.

Ar"a# !o:"r"& i%!5&";

For ma%a?"m"%) #)a66.

'onceptual.

Cunctional.

'ross$functional.

=ehaviour.

For @or"r#.

Systems.

Technical aspects.

or" culture.

Specialised training for trade unions.

Page 7


48/102

APOLLO TYRES LTD

TRAINING AND DEVELOPMENT PROCEDRE

Training and development of AT )eram!ra aims to accomplish the

following o!(ectives;

To e5uip the personnel with conceptual* functional and !ehaviour s"ills

those are necessary to perform the (o! at hand.

To provide a nature for the wor" is to down of an individual where in

heshe can e0plore and optimally use hisher innate and talent

potentialities leading to hisher individual growth and development.

To create a culture of continuous leading among the all employees

through systematic training with the ultimate o!(ective of ma"ing AT a

performance driven organisation.

TRAINING RECORDS

< types of training records will !e maintained !y D /epartment.

Trai%i%? !ar.

The training card will contain the details of all training programme

that are attended !y an individual employee. The card will !e maintained in

the prescri!ed from CD$4$A$.

Or?a%i#a)io%a5 )rai%i%? (ro?ramm" mo%i)or.

In order to consolidate and mention various training programme

conducted* an organisational training programme maintained as per from CD$4$

A$-

Individual training programme monitor.

Cor those programmes attended !y more than - individuals* the list of

participants will maintained in the individuals training programme in the

prescri!ed from CD$4$A$4.

Page ,


49/102

APOLLO TYRES LTD

TRAINING PROGRAMMES.

Training on communication and interpersonal s"ill programmes for

associate managers and managers.

Training on 8yotirgamaya for !lue collared employees.

Safety and fire training conduct for !lue collared wor"men.

ith a view to develop multi s"ill among engineering trainees* they are

given e0posure to engineering* production and technical fields.

TRAINING IN THE FORM OF THEME CENTERED

INTERACTION.

JYOTIRGAMAYA;

On each wor"ing day a!out 4$7 employees are selected for training in

a classroom atmosphere* a!out the productivity* 5uality G scarp reduction. The

employees are provided training specialty a!out the company and the tyre

industry in general.

8yotirgamaya provide information regarding the changes happening in the

industrial field. It#s o!(ective is to give training for all the employees in the

unit within a period of 1 year.

SI SIGMA ;7introduced on April 14th27?

Si0 sigma is !asically meant for increased production and for running

the organisation profita!ility. I t is for finding out areas where unneeded

e0penses are occurring and for reducing. It using scientific techni5ues with a

disciplinary approach. A si0 sigma organisation means the defects in the

production of 1 la"h parts must !e !elow


50/102

APOLLO TYRES LTD

used for this* then the organisation will achieve an une0pected growth. This

helps to find out the defects in production and for finding out remedy. It also

helps to understand the fact that consumers are the owners and also to

produce 5uality products.

+. INDUSTRIAL RELATIONS

There e0ists a good relation in the company. The management and the

employees (ointly find the solution for the pro!lems. There e0ists a well

maintained relation !etween the employees and employers.

Tra&" U%io%#

ATEU - Apollo Tyres Fmployees nion.

ATM-Apollo Tyres or"ers %ovement.

ATSU-Apollo Tyres Staff and or"ers nion.

ATMS -Apollo Tyres %a:door Sangh.

,. ELFARE

The organisation provides good welfare services to its employees. The

company runs a su!sidised canteen on contract !asis. Dest rooms with loc"er

and washing facility* arts and sports clu!* and well maintained li!rary are other

facilities provided.

A well transportation facility is given to all the employees from

different destinations for which they have to pay a very less amount. All

employees drawing a salary !elow Ds.4 are covered under group accidental

policy and medi claim policy.

The various schemes for the employees are;

1. Fmployee deposit lin"ed insurance scheme.

2. or"men#s compensation scheme.


51/102

APOLLO TYRES LTD

4. ousing loan interest su!sidy and so on.

Ta"ing the health aspects of employees those who in the night shift get

2ml of mil" pac"ets. It is given to retain their lost energy in the night shiftand give motivation to the employees to come for night shifts.

Apart from its soaps is distri!uted for the cleanliness of employees.

Fach wor"er gets soap fully off cost and those who wor" in their production

units < in num!er per month.

"56ar" a!)i:i)i"# ar" o6 $ )y("#

Statuary.

Settlement grievances.

S)a)ary @"56ar" a!)i:i)i"#.

FSI

Bratuity

Som" o6 )'" #"))5"m"%) ?ri":a%!"# ar"

Gro( Sa:i%? Li%"& I%#ra%!" S!'"m" 7GSLIS8.

Gro( P"r#o%a5 A!!i&"%) I%#ra%!" S!'"m" 7GPAIS8.

Gro( M"&i!5aim I%#ra%!" Po5i!y 7GMIP8.

Ma%a?"m"%) #)a66

Broup hospitalisation scheme.

Broup personal accident policy.

Two wheeler scheme @ H !orne of the company.

'ar scheme @ Asst. manager G a!ove $ H !orne of the company.

Super annuation @ Asst. manager and a!ove.

Fmployee self development scheme.

or"r#

Broup personal accident policy.

Page -1


52/102

APOLLO TYRES LTD

%edical claim.

ousing loan interest su!sidy$-H.

2 wheeler interest su!sidy$7H.

Cinancial assistance co$operative society.

)eriodically medical chec" up.

The aim and o!(ective of welfare fund shall !e to render financial

assistance and to encourage cultural* sports* social games and other welfare

activities among them a spirit friendship * co$operation and understanding.

.TIME OFFICE

This is concerned with registering the time in and out of the wor"ers.

Other activities related to payment of wages* incentives* leaves etc..../ifferent

registers are "ept for different shifts for the effective functioning.

A leave !oo" is maintained G it contains*

eave !alance.

eave credited.

eave waited.

The daily attendance reports for the employees specify the following;

Sectiondepartment.

Shift.

/ate.

'loc" no.

Brade.

ours wor"ed.

Schedule shift.

Apart from it * a punching system is maintained. Fach employee has to

punch his !adge in the electronic punching system while arriving for duty. Thesame is repeated while leaving the factory premises.

Page -2


53/102

APOLLO TYRES LTD

Attendance is cross chec"ed with the attendance report of the wor"man

and the attendance register maintained at various sections for the staff and

managerial persons. )erformance reports are maintained at various sections for

the staff and managerial persons. )erformance reports are maintained in each

section. These are done with a view to reduce the a!senteeism in employees

and motivate them to increase production. A leave !oo" is maintained and it

contains leave !alance* leave credited and leave awaited. The daily attendance

report is verified !y the superior * shift engineer and shift superintendent

department head.

SHIFTS OF OR4ERSShift or"ing hours

A 4am$2pm

B 2pm$1pm

C 1pm$4am

D7G"%"ra58 9am$-pm

>Ta!le no -.


54/102

APOLLO TYRES LTD

- =e responsi!le for security of men* machinery * finished goods* raw

materials * process materials * highly sophisticated e5uipments etc.... Their

inward and outward movement is monitored as per the system prevailing.

- /evelopments of security staffs in line with the re5uirement of the

organisation and to "eep a high morale of the forces.

Pri%!i(a5 a!!o%)ai5i)i"# o6 !'i"6 #"!ri)y o66i!"r.

1. %onitor and control all inward and outward movement of vehicles *

material and personal.

2. /eploy of contract wor"force to various department for routine as well

as pro(ect wor".


55/102

APOLLO TYRES LTD

department are given mas"s * safety gowns and shoes. In Apollo * a separate

!oo" is given to each employee * which prescri!es certain rules and procedures

in order to create a wor"ing environment free of accidents. &o ma(or accident

was occurred in the plant for past 1 years.

A=' of safety

A$Always

=$Be

'$Careful

FIRST AID

M"&i!a5 o66i!"r;-

There are 2 doctors in Apollo Tyres td* )eram!ra plant to cater to the

medical needs of the company. One among them is a general surgeon . The

various services provided !y the medical officers are listed !elow.

a? 'ausality services @ The main purpose is the causality function. The in(ured will

!e provided first aid !y the medical officers. All the facilities availa!le within

the company will !e utilised and when further treatment is re5uired the

patients will !e referred to near!y hospitals. If the in(ured re5uire any leave or

rest * then a !rief investigation report will !e prepared and su!mitted.

!? %edicines @ =asic medicines will !e availa!le in the first aid counter itself and

other medicines will !e prescri!ed to the patients to !e purchased from

outside.

c? Decord "eeping @ A chart called the M chart# is maintained for the

employees where all details regarding the various diseases of the employee will

!e recorded.

d? Advisory services @ Advisory and counselling services are provided the

employees with regard to their physical as well as mental pro!lems.

e? 'lasses and Seminars @ %edical officers conduct classes and seminars

regarding the harmful effects of alcohol * drugs * smo"ing etc... and ma"e them

understand the ways in which this will affect the health of the company.

f? )osture and e0ercises- A healthy mind and strong !ody is re5uired for

the company to perform successful. The 5uality of wor" depends on the

Page --


56/102

APOLLO TYRES LTD

individual. Therefore the medical officers also advices regarding good posture to

!e maintained* e0ercises to !e performed to maintain !ody and mind healthy

and activity

Em"r?"%!y (5a%;-

Fmergency is a situation warrented to see" e0ternal help or

resources for controlling an eventuality which adversely affect the environment *

man and material or o!(ectives of emergency plan are to assign the individual

roles and duties to perform in an emergency situation.

a? To avoid panic and confusions.

!? To effective utilise the availa!le resources.

c? To e5uip them.

=ut if the facilities not enough * then advance intimation shall !e

passed to hospitals for immediate receipt of patients. The procedures to !e

performed for such a situation are listed !elow;

a? The details of the causalities that are ta"en to the hospitals will !e

intimated to the welfare officer.

!? e will also inform the Apollo Tyres td head * engineering head * D

and administration head * finance head * safety manager * security manager and

medical officers over the phone.

c? elfare officers shall co$ordinate with hospital to give utmost care and

attention to the victims.

Incident controller shall prepare a !rief accident report >CID? to !e

su!mitted to the management immediately after the situation has come under

control.

OTHER ADMINISTRATIVE ACTIVITIES

1. Selection )rocedure.

2. Induction )lan.


57/102

APOLLO TYRES LTD

. A!senteeism %anagement.

1. S"5"!)io% Pro!"&r"

a. Ma%a?"m"%) #)a66.

Technical ; =.Tech* Bradate Fngg Trainee

&on$Technical ; 'AI'A%S%A>)%?;F0ecutive Trainee

After @ trainee a!sor!ed as officer criteria

'onsistency in academic performance

Broup discussion

)ersonal interview

!. Fmployee children s"ill development scheme

1 year training in production

/ependents of employees

%inimum 5ualification @ ,th std

)hysical fitness

$.I%&!)io% P5a%

or"ers ; 2 days induction training

%anagement staff ; 1- days induction

uality )ledge

Safety procedure

elfare measures

Interaction with all department heads

*.P"r6orma%!" A((rai#a5

Fmployee /evelopment Deview>April$%arch?

Three @ Tier system

elps in setting individualteam goals

Page -7


58/102

APOLLO TYRES LTD

Dated in respect of the achievements

%id @ year review of the goals

)ersonal attri!utes considered

+.A#"%)""i#m Ma%a?"m"%)

A!senteeism among wor"men has !een a cause for concern for the

company production has suffered heavily in this account recently. It has

therefore !een decided to fight against the a!senteeism contains among the

regular wor"men and production apprentices through attendance monitoring

mechanism.

The control measures are

a. A))"%&a%!" Di#!i(5i%" 2 D":"5o(m"%) Pro?ramm"

Introduction of A// programme effective in AT

- An effort to improve the attendance of chronic a!sentees

- To maintain consistent production

Operations of the schemeo 'hronic a!sentees num!ering 192 are !rought under small group of - person.

o 192 wor"men are !rought under 2< groups* under each mentor* drawn from

purchasing and other financial areas* on a daily !asis oversee attendance to

ensure availa!ility of his group mem!ers for wor".

o D department monitor the attendance and stops those who a!sent from duty

continuously for < days.

o After 1-th of each month* attendance data of the group mem!ers are generated

and circulated among the groups.

o D department pu!lishes list of a!sentees during 1 st half of the month to give

them a chance for improvement during the second half of the month.

Page -,


59/102

APOLLO TYRES LTD

o In the 1st half of the succeeding month* the attendance for the previous month

is pu!lished and committee meets and decides the course of action against

defaulters.

o Advisorywarning suspensionpending en5uiry etc... are issued !ased on the

gravity of each case.

o Individual appreciation letters signed !y the mentors are sent to the residence

in cases where remar"a!le improvement is shown.

. Sy#)"m

o /aily follow up

o < days @ meet D

o 4 days @ stoppage

o 1 days @ home visit

o 2 days >accident? home visit

!. Ta# 6or!"

o 'onstitution >1D L1ine )ersonnel?

o 12 tas" forces for 114 mem!ers

o Achievements ; 1 a!sentees were covered to 1H attendance

o Individual )ro!lem solving

o


60/102

APOLLO TYRES LTD

o 12H permissi!le limit or wor" station

o Cestival leave plan

o eave sanctioning and monitoring

Sa5ary Paym"%)

All supervisory personnel are re5uired to open a S= account with South

Indian =an"* )eram!ra and intimate the accounting department who in turn will

remit the salary.

In case of non @ supervisory personnel cash payment is done in the following

days

Staff and service staff @ ast wor"ing day of the month.

)roductionengineering @ 7th wor"ing of the succeeding month.Em(5oy""# 6o!# 7SHE8

1. Sa6")y A#("!)# ; Primary im(or)a%!"

$. H"a5)'

Cull time doctor

Am!ulance

/ispensary

%edical chec" $ up

*. E%:iro%m"%)

Fco @ friendly surrounding

)ollution free wor" practice

B#i%"## 6o!#

)roduction lin"ed !onus

)roduction lin"ed TS>ong Term Settlement?

6ero over time

Page 4


61/102

APOLLO TYRES LTD

F0pansion of capacity

Dight si:ing

Promo)io%

)romotion is purely !ased on attendance * seniority and performance.

They are all recorded in a systematic way. There is computerised punch card

system followed in the company. Fach entry and e0it to the plant is recorded.

Apart from this is a well maintained payroll system too. A!senteeism is !eing

found out and proper reasoning is o!tained. The attendance of the wor"ers also

account for their promotion.

Thus D department is the strongest department of Apollo Tyres td *

)eram!ra* which have seven su!sections which are mentioned a!ove. It has a

well esta!lished industrial relation and this department gives more important to

the welfare and safety of the employees * also the time management is very

good here. All these sections are under the direct control of the D %anager.

Page 41


62/102

APOLLO TYRES LTD

. PRODUCTION DEPARTMENT

MANUFACTURING PROCESS

)roduction department is re5uired for the operation* maintain 5uality and

optimum level of production department of AT* )eram!ra consist of 2 :ones*

namely :one 1 and :one 2.All the production activities are classified under these two:ones. The production planning starts with receipt of production tic"et from /elhi

which contains the 5uality re5uired for !ranches. The re5uirement is then processed in

the planning department and then converted into e5uivalent for production* and then

the production schedule is finali:ed.

STRUCTURE OF PRODUCTION DEPARTMENT

Page 42

)DO/'TIO& FA/

/IISIO& AFA/

/IISIO& =FA/

/IISIO& ' FA/

FNF'TIFS FNF'TIFS FNF'TIFS


63/102

APOLLO TYRES LTD

>'hart no -.


64/102

APOLLO TYRES LTD

>'hart no -.?

Daw materials used in the manufacturing process

%ain raw materials used for the tyre manufacturing are*

%aterials used for various ru!!er components.

%aterials used in for tyre reinforcement.

Au0iliary materials.

%aterials used in ru!!er components

The essential ingredients in ru!!er components are as given !elow;

Daw ru!!er or natural ru!!er.

ulcani:ed ru!!er

'ar!on !lac"

6inc o0ide

Accelerators

Activators Deinforcing agents

)rocess oils or Aromatic oils >ma"es easy the mi0ing?

Anti @ degradents

Anti @ o0idants

Cillers

)rocess aids

Special additives

Page 4

)ost cure inflation

Cinal inspection

arehouse


65/102

APOLLO TYRES LTD

Ra@ r"r;

Du!!er as such is a soft semi @ solid material which does not have any

properties re5uired for tyre components li"e elasticity* hardness* resistance etc.

&atural ru!!er occupies the top position as the general ru!!er. It gives good strength*

tear* wear and fle0 resistance* good process a!ility and low heat !uild up and good

a!rasion resistance.

Synthetic !utadiene ru!!er >S=D? is the first synthetic ru!!er developed. It

offers good strength and tear* good crac"* initiation* resistance* well whether

resistance and fine process a!ility. S=D is also recommended for !ead compounds for

higher hardness.

V5!a%i


66/102

APOLLO TYRES LTD

Ma)"ria5 #"& 6or )yr" r" 0 "%6or!"m"%)

'arcass and !ead materials used in a tyre are called tyre re @ enforcement.

Te0tiles in the form of continuous filaments are the primary material for the tyre

carcass. To form a ply* sufficient num!er of continuous filaments is twisted together.

'ords are then woven into fa!rics in special looms* with cords in longitudinal

direction called wrap and thin cotton filaments in the opposite direction called weft.

=ead wire is a special alloy steel wire with !ron:e plating used as a !ead wire for tyre.

Pro!"## oi5#

Incorporation of re @ enforcing agents in a ru!!er is often difficult and to

facilitate easy incorporation process* oils are used. These are also used to improve

compound process a!ility at calendar and e0truder.

A%)i 0 &"?ra&"%)#

%ost of the ru!!ers are highly suscepti!le to degradation when su!(ected to heat*

fle0* and weather and to ta"e care of these anti @ degradents are added.

Fi55"r#

Often* through not common* low cost su!stance called fillers are added to

reduce compound cost.

Pro!"## ai

)rocess aids are those su!stances that are added to ru!!er compounds forreducing viscosity of the stoc" and for improving process safety.

S("!ia5 a&&i)i:"#

Sometimes special additives li"e !ounding agents* hardening agents* and

corrosion inhi!itor etc are added for specific vulcani:ation properties.

Ai5iary ma)"ria5#

Page 44


67/102

APOLLO TYRES LTD

%a(or au0iliary materials used in the tyre manufacturing process are dip solution*

chemicals* solvents* lu!ricants and seperants.

Ma%6a!)ri%? (ro!"## a!)i:i)i"#

The entire production system has !een !roadly divided into three

sections * namely /ivision A* /ivision =* /ivision '.

/ivision A @ Ta"es care of assem!ling activities.

/ivision = @ Ta"es care of !uilding activities.

/ivision ' @ Ta"es care of the curing activities.

DIVISION-A

1. COMPOUND MIING

A compound is made !y mi0ing the re5uired additives into ru!!er. This

mi0ing is accomplished in two or more steps using a =an!ury mi0er. This mi0ing

is done in the cham!er of the =an!ury mi0er under high shear and pressure using

the rotors of the machine so that the ingredients and uniformly dispersed inside

the ru!!er matri0. /ifferent ru!!er compounds >differing in the recipe? are used in

the different compounds of the tyre.

The ru!!er compound is then used for the preparation of different

components in su!se5uent stage of manufacture.

1. Tread

2. Sidewall


68/102

APOLLO TYRES LTD

9. S5ueegees

1. =rea"ers

&aturally the compounds prepared in the =ar!ary go to the respective

e5uipment and process for further processing.

2. CEMENT PREPARATION

arious cements* solutions* lu!ricants and paints are prepared in the cement

house sing ru!!er compound solvents and other raw materials. These are then

used at various stages of tyre manufacturing.

Dayon and &ylon? is having very poor adhesion to the ru!!er

compound and has poor dimensional sta!ility. /uring the dipping process an adhesive

coating >eg. Desorcinol* formaldehyde*) late0 dip? is applied to the surface of the

fa!ric to improve adhesion. The fa!ric is also stretched and hot set to increase the

dimensional sta!ility. /ipping is accomplished in the dip unit and the dipped fa!ric is

then used for the preparation of the different compounds as mentioned a!ove.

. ETRUSION;

ere compounds of the tyre li"e tread and sidewall are prepared from the ru!!er

compound using a /ual e0truder. F0truder is the process !y which the ru!!er

compound is given definite continuous shape. A thin sheet of ru!!er compound

prepared using a small 2$roll calendar is applied to the !ottom side of the tread. This

compound is called tread cushion. The continuous profile is then cooled and cut to

re5uired length which is used in the assem!ling of tyre at tyre !uilding.

ETRUDERS

F0truders are distinguished !y the diameter of their screw and are a single or dual

type.

a? SINGLE ETRUDER

Page 4,


69/102

APOLLO TYRES LTD

Du!!er compounds after !eing !ro"en down and warmed up on %ills* are fed in to

the screw of the e0truder from which with the help of dies* produces a green shape of

treads* sidewalls* and other strips as per specified dimensions and contours* width*

gauge and weights. These strips are cooled in water sprayed conveyors and then cut

out into specified lengths with the help of s"ivers >rotary cutting "nife? and !oo"ed in

metal trays or wrapped in cotton liners. The word green denote uncured ru!!er >i.e.

&on vulcani:ed?

!? DUAL ETRUDER

Two separate set of mills on which two different types of compounds are !ro"en

down and heated and fed separately to two different screws. The two compounds aftere0trusion are e0truded together in a common head and with the help of performer and

final dies* emerge into a pre determined shape. The advantage of the dual e0truder is

that two ru!!er compounds of completely different composition can !e e0truded.

-. CALANDER

Ca!ric calendaring is the process of coating !oth sides of dipping fa!ric using

ru!!er compound. This is accomplished using a roll M6# type calendar. The coated

fa!ric is cooled and wound in liner >in continuous length? to avoid stic"ing. This goes

to the ne0t stage of ply cutting.

4. PLY CUTTING 7Hori


70/102

APOLLO TYRES LTD

7. SUEEGEE CALENDARINGSUEEGE APLICATION

S5ueegee calendaring is the process of ma"ing thin sheet of ru!!er compound

usually !y using a < roll or roll calendars. S5ueegees are used at the inner most layerof the tyre >drum s5ueegee? and also in !etween the different plies >ply

s5ueegee?./rum s5ueegee is prepared in the roll 6 calendar. It is in liners this

s5ueegee roll is sent to tyre !uilding for assem!ling. The ply s5ueegee preparation

and its application on to the cut plies are accomplished simultaneously at the < roll

calendar after s5ueegee application the plies are sent to tyre !uilding for assem!ling.

DIVISION 0 B

,. BEAD PREPARATION

It consist of three stages;

=ead winding

=ead Cillering

=ead Clipping

a8B"a& @i%&i%?

ere several wires are passed through the head of a !ead e0truder and coated with

ru!!er compound. The coated tape so formed is wound into !undles of definite turns

and strands and of definite diameter. The process is accomplished using a machine

called the !ead winding machine.

8B"a& Fi55"ri%?

ere a triangular shaoed continuous ru!!er profile >called !ead filler? is e0truded

using a cold feed e0truder and applied on the !ead !undle using a fillering machine.

Page 7


71/102

APOLLO TYRES LTD

!8B"a& F5i((i%?

The flipper fa!ric prepared at the !ias cutter and slitter is applied around the

fillerd !ead !undle. This is accomplished using a !ead flipping machine.

9. TYRE BUILDING

It is the process of assem!ling various components into the semi finished product

called a Mgreen tyre#. This is accomplished !y a tyre !uilding machine. The

components li"e drum s5ueegee* plies >with s5ueegee applied on it? are assem!led

using a tyre !uilding drum. The flipped !eads are applied from the ends and loc"ed in

using the ply ends !rea"er and chafer are applied ne0t. Cinally the tread and sidewalls

are applied. The assem!ly >green tyre? is ta"en out after collapsing the drum.

The different components that ma"e a green tyre are the following;

)lies

=rea"ers

'hafer

=eads

Tread

Sidewall

DIVISION 0 C

1. TYRE CURING

The green tyre inspected and they applied with a lu!ricant inside and an anti$

!lemish paint on the outside sidewall area. The green tyre is also availed to facilitate

easy removal of trapped air during the final shaping and moulding operation. The

green tyre is shaped and given the final contour using appropriate tyre curing moulds

>fitted to tyre curing presses? !y the application of pressure and temperature. The

ru!!er compound gets vulcani:ed during curing and !ecomes tough and elastic andprovides all the desired properties re5uired in the tyre. The curing times vary

Page 71


72/102

APOLLO TYRES LTD

depending upon the si:e of the tyre varying from 2 minutes for a passenger car tyre

to ane hour for truc" tyres.

11. POST CURING INFLATION &ylon tyres after press curing are "ept under high pressure inflation to help

shape retention and to reduce growth in service. This process of cooling tyre under

high inflation pressurenis called post cure inflation >)'I?.

12. INSPECTION

The tyres after )'I are su!(ect to vend trimming. The tyres are then inspected

1H for visual effect. The tyres are also statistically sampled and tested for

conformation to =IS specification and warehoused.

MAJOR LOSSES DURING PRODUCTION

=rea" down of machineries

oss of time for setting up of machines

oss due to difference of machine speed

oss due to stoppage of production

oss due to mista"es and correction of mista"es

TOTAL PRODUCTIVE MAINTANANCE 7TPM8

, pillars of T)% are as follows;

1. Autonomus maintenance

2. F5uipment and process improvement


73/102

APOLLO TYRES LTD

7. T)% in office departments

,. Safety* health and environment

)roduction facility is the !ac"!one of any manufacturing !ased

organisation. Apollo Tyres is very much improved in production capacity. The per

day production of Apollo Tyres td is 27 tones. This achievement is only

possi!le !ecause of hard wor" of employees.

,.UALITY ASSURANCE DEPARTMENT

uality is the totality of characteristics of an entity that !ears on its a!ility to

satisfy* stated and implied needs. uality is referred to as

Citness for use

Citness for purpose

'ustomer satisfaction

'onformance to re5uirements

STRUCTURE OF UALITY ASSURANCE DEPARTMENT

Page 7


74/102


75/102

APOLLO TYRES LTD

materials are realised for further processing only if the test result is O+. If the test

result is not O+* processed material will !e held up for technical disposal.

o

PROCESS CONTROL AND AUDIT;In shifts* all the production areas will !e audited !y uality Assurance will

chec" whether the processing is done within the re5uired specifications. If any

a!normality is noticed* necessary corrections will !e done and the defective processed

materials will !e held up. Cinished product >cured tyres? will !e also chec"ed !y

uality Assurance. If any defect is noticed on finished tyre it will !e held up. Only

O+ tyre will !e released to warehouse.

Samples of cured tyre are tested indoor on a test wheel. The test wheel

simulates the running condition of a tyre* primarily used to detect car ass strength and

heat generation. Tyres are also fitted on different vehicles to study the effect of

different types of roads* loads and climate conditions. Cor Original F5uipment >OF?

there is 1H inspection !y 5uality assurance. The different methods used for

chec"ing are /imension* )ulley wheel and )uncher.

4. SYSTEMS DEPARTMENT

The system department is responsi!le for computeri:ed of different

departments of Apollo Tyres td. The main function of this department* operates and

co @ ordinates all systems in the organisation. The simple structure of department

facilitates speedy communication flow with in the department.

Page 7-

BDO) %A&ABFD @SESTF%S*))' G IF


76/102

APOLLO TYRES LTD

>'hart no -.7?

MONITORING FUNCTION

Security pro!lems in the SA) >Systems Application and )roducts? were solved

using 'entral irus Scanning System and Cirewall at the head office >Burgaon*

aryana?.' solve all the pro!lems related to the networ" connection.

MAINTENANCE FUNCTION

The systems departments in the plant solved networ" pro!lems as well as

computer pro!lems. Degular !ac"ups were ta"en daily* wee"ly and monthly for

providing relia!ility in the SA) system.

All the computers were connected using !oth point to point and star topology

to form an Internet inside the plant. )roper authentication was given to each

department mem!ers using I/ and a password.

Apollo ma"es 2- different types of tyres today. IT helps them to "eep trac"

of every product* its demand forecast and production cycle. The way the automo!ile

sector is growing* they will need IT to map their production and ensure they don#t

lose new or present customers.

7.PRODUCTION PLANNING AND CONTROL DEPARTMENT

The resources in terms of machines* men* material etc are used in the tyre

plant run into several crores and it is necessary to ma"e !est possi!le use of these

resources to achieve ma0imum economy in production costs. The main o!(ective of

production planning control is therefore to ensure optimum utili:ation of those

resources as well as the capital loo"ed up in wor" in progress inventory.

Page 74

FNF'TIF $

SESTF%S


77/102


78/102

APOLLO TYRES LTD

The ma(or responsi!ilities and functions of )roduction )lanning and 'ontrol

could !e enumerated as follows;

$ Fsta!lishing production program in consultation with mar"eting

departments.

$ )lanning and control of production schedule.

$ Fnsure ade5uate production and inventory.

The )roduction )rogram of )roduction )lanning and 'ontrol is prepared !ased on the

following;

%achine capacity

a!our re5uired

Daw material re5uirements

F5uipment and other tools re5uired for manufacturing >moulds* drums etc?.

Ra@ ma)"ria5#

iaison with material control and technical departments for re5uirement of

raw materials as per the consumption pattern. Authorise D%S for issue of raw

materials to production floor.

S!'"&5i%?

%achine scheduling includes day to day scheduling machine loading in the

most optimum level. Deview of progress and initiation of action to remove !ottle nec"

planning and control of in process inventory at optimum level etc.

Ma!'i%"#

Deview of machine capacity and its limitation with respect to production

programme to initiate corrective actions. Access of material handling e5uipment and

storage systems and arrange for procurement whenever necessary.

Scheduling in !rief is determination of

1. hen a (o! will !e done.

2. here to do this (o! >incase where is more than one machine?


79/102

APOLLO TYRES LTD

and determination of production inputs such as la!our >man power?* machinery and

e5uipment* materials and utilities to achieve the desired goal.

,.INDUSTRIAL ENGINEERING DEPARTMENT

Industrial engineering department helps to maintain the machines which

has !een using for the production process. Thus this department helps to avoid the

distur!ance during the production process.

Page 79


80/102

APOLLO TYRES LTD

>'hart no -.9?

O"!)i:"#;

The main o!(ective of this department is to plan* design* implement and image

integrated production and service delivery system that assure productivity* 5uality*

relia!ility* maintaina!ility and cost control to "eep Apollo glo!ally competitive.

F%!)io%#;

1. 'onduct wor"$studies* improvement studies in various e5uipment and fi0ation

of norms.

2. 'apacity calculation in various e5uipments from time to time conse5uent to

various changes.


81/102

APOLLO TYRES LTD

12. 'onduct various training classes for wor"men* supervisors* other officers and

new recruits.

1Organisation and methods? studies* "ai:en* line !alancing etc.

1. Suggest various cost reduction programmes and implementation.

1-. Associate with professional !odies li"e productivity council* &ITTIF etc and

institution of engineers etc.

14. 'onduct daily audit on man power* productivity* lost time* scrap detail*

a!senteeism* overtime etc.

17. Curnish various other management information reports of the top management.

1,. Involve !est practices and processors through glo!a

Documents

HR Project on Apollo Tyres