II Report- Vrl & Kfil

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Industrial Integration Report

on

KFIL, Hospet &VRL Logistics, Hubli

( 28th

October to 29th

October 2010)

Date of Submission : 15-01-2011

Submitted To

Prof E. Anand



Acknowledgement

Any attempt at any level cannot be satisfactorily completed

without the support of learned people. We would like to express our

immense gratitude to Dr. Gopal Iyengar for providing us the golden

opportunity of industry visits. We are also thankful to Prof. E.Anand for

his constant support and motivation that has encouraged us to come up

with this report. We take this opportunity to thank all the faculty of

KIAMS for their invaluable guidance throughout our stay in KIAMS.

We are also grateful to Anirudh Phadnavis (Finance GM- VRL

Logistics) and Mr. Pavan (Junior HR Officer- KFIL) who have rendered

their whole hearted co-operation at all times for the successful

completion of this visit.

Contents



1. Objectives of the Visit

2. Manufacturing Company- KFIL

2.1 Company Profile

2.2 Mission, Vision, Objectives & Values.

2.3 Company Data Captured in Balance Scorecard & Business

Excellence Model.

3. Service Company- VRL Logistics

3.1. Company Profile

3.2. Mission, Vision, Objectives & Values.3.3. Company Data Captured in Balance Scorecard & Business

Excellence Model.

4. Suggestions for future visits.

Objectives of the visit



To have an interface with the industry.

To get acquainted with the practical application of the concepts of Balanced Score Card

and the Business Excellence Model.

To get a better understanding of the Business Excellence Model and the Balanced Score

Card.

To interact with the various functional heads of the respective manufacturing and service

companies and get to know the linkage of theoretical concepts and their application in the

corporate world.

An experience aimed at expanding our view about business and making us identify the

dimensions that require attention on our part.

To make us understand the roles and responsibilities of different departments in an

organisation and the differentiation and integration of the same.

The visit also helped us identify the sector and department which each one of us might be

more interested in joining in the future.

Manufacturing Company- Kirloskar Ferrous Industries Limited.

Profile of the Company

Kirloskar Ferrous Industries Limited (KFIL), which was incorporated on 10th September

1991 to manufacture pig iron and ferrous castings. Business areas of the company encompass

Grey Iron castings, S.G Iron castings, Steel Investment castings and Pig Iron. The product range

includes Grey Iron castings: 1 kg - 500 kg single piece weight, S.G Iron castings: 1 Kg -70 Kg

single piece weight, Investment castings: 1 gram-1 Kg single piece weight and Pig Iron: Foundry

Grade, S.G. Iron Grade & Basic Grade. For the producing the all above, the company having two

manufacturing units in Bevinahalli Village (Near Hospet) and Solapur.

KFIL had entered into a technical collaboration with M/s. Tata Kort Engineering Services

Ltd in March of the year 1992 for its business purpose. The Company's commercial production

of Pig Iron from Mini Blast Furnace I and 3.5 MW Power Plant-1, using Blast Furnace Gas were

started in the year 1994 and in the identical year, KFIL had issued Initial Public Offer. The

commercial production of Grey Iron castings came to line in the year of 1995. In the same year



of 1995, KFIL had started to produce Mini Blast Furnace II. The company had obtained an ISO

9002 certification. The Company's 3.5 MW Power Plant-2 was installed in the year of 1997. In

1997, Turbo Generator II was taken on lease with a capacity for the generation of 3.5 MW of

power using Blast Furnace Gas. TG - II was taken on lease. After a year in 1998, the company

started supply of TG power to foundry.

During the period of 1999-2000, KFIL had entered into a long term contract for pig iron

with an institutional buyer and also secured a sales tax exemption for further two years. During

the year 2000, the company entered into financial restructuring with IDBI and with other

institutions namely IFCI, IIBI, GIC, OIC, LIC and NIA. In 2001, KFIL had received an ISO

9002 certification. After a year, in 2002, an ISO 14000 certification was handed over to the

company. KFIL had entered into one time settlement with Financial Institutions for the

repayment of the high cost Loans in the year 2003. An ISO / TS 16949:2002 certification was

added to the company's quality list in the year of 2005. KFIL had purchased the MBF II and TG

I, II in the year 2006 for its various purpose, which were earlier taken on lease. During the year

2007, the company had acquired Solapur foundry from Kirloskar Oil Engines Ltd and also Hot

Blast Stoves project for Mini Blast Furnace -1 was commissioned.

Year of Establishment - 1992

Total Area - 289 Acres

Percentage Area covered - 35 %

No. of Employees - 820

Products - Pig Iron (Basic, Foundry & S.G.Grade) - Grey Iron

Castings

Turnover for 2007-08 - Rs. 640 Crores

Mission

To become a cost effective pig iron manufacturer &to enhance production capacity – from

240,000 tons to 425,000 tons by 2010

To enhance casting manufacturing capacity – from 84,000tonsto 130,000 tons by 2010.

To move towards machining and assembly

To capitalize on export potential in casting business



To move up the value chain by adding steel manufacturing

To become energy self sufficient through co-generation of power

To continue to work towards Cleaner Environment

Vision

To be a world class product leader through the state-of-the – art manufacturing

technologies & processes

Objectives

To increase market share in all markets that are present.

To Increase the share in auto components (due to investments made in capacity

expansion), Medium Engines for Stationary and Agri (Tractor) Use, and Large Engines

for Stationary (Power Generation) .

The major thrust is to “Drive Down Cost” to retain competitive edge.

To achieve reduction in coke consumption by 80 kg/thm

To achieve productivity increase by 15% & coke consumption reduction by 4% for

foundry grade & 32% productivity increase & 11% coke consumption decrease for basic

grade

To completely utilize Blast Furnace Gas available from the process

Values

To achieve the mission and vision, KFIL would pursue following values:

Customer Orientation.

Vendor Development (Critical link in the business)

Development of Human Resource (Trust, Positive attitude, Integrity, Team-Work,

Respect for individual, concern for quality, cost, 5S, Safety, a personal habit, Being

proactive, Solving problems, Networking, Working for WIN-WIN agreements,

continuous improvement and result oriented)

Process & Product excellence.

Responsible corporate neighbor



Company Data captured in Business Excellence Model and Balance Scorecard Model

Leadership

Excellent leaders develop and facilitate the achievement of the mission and vision. They

develop organizational values and systems required for sustainable success and implement these

via their actions and behaviors. During periods of change they retain a constancy of purpose.

Where required, such leaders are able to change the direction of the organization and inspire

other to follow. They are responsible for:

1. Leaders develop the mission, vision, values and ethics and are role models of a

culture of excellence.

2. Leaders are personally involved in ensure organisation’s management system is

develop , implemented and continuously improved.

3. Leaders interact with customers, partners and representatives of society.

4. Leaders reinforce a culture of excellence with organisation’s people.

5. Leaders identify and champion organisational change

The company is under the efficient management headed by

Chairman- Atul C Kirloskar

Director- Sanjay C Kirloskar

Managing Director- R V Gumaste

Board of Directors- A R Jamenis

- C V Tikekar

- S N Inamdar

- S G Chitnis

- A N Alawani

People

Excellent organisations manage, develop and release the full potential of their people at

an individual, team based and organisational level. They promote fairness and equality and

involve and empower their people. They care for, communicate , reward and recognize in a way



that motivates staff and builds commitment to using their skills and knowledge for the benefit of

the organization.

People resources are planned, managed and improved.

People’s knowledge and competencies are identified, developed and sustained.

People are involved and empowered.

People and the organization have a dialogue.

People are rewarded, recognized and cared for.

1. Employees

In accordance with our mission of 'DESTINED TO SCALE NEW HEIGHTS' we

strongly believe that, a satisfied employee is an unadvertised asset of a company. Hence, we at,

Kirloskar Ferrous Industries Ltd., are committed to bind the organization with a common

purpose, a common mission and common values so as to continuously upgrade quality of work

life of our employees through:

Creation of good working environment and shared accountability for quality,

safety and knowledge.

Adoption of improved work practices to foster the intellectual capital.

Develop people with high degree of enterpreneurability and leadership qualities.

Develop emotional togetherness for strong ownership.

Defining the role & responsibilities of employees to generate empowerment and

right leadership.

Encouraging teamwork, participation & involvement to effectively deal with

negative residues.

Development of personnel to create knowledge tank and a learning base to defeat

competition.

Recognize performers through rewards and recognition.

2. Customers



Mahindra & Mahindra , Kirloskar Oil Engines Ltd, Escorts , TAFE, SIMPSON ,

Tata Motors Ltd, EICHER , CARRARO, Toyota Kirloskar Auto Parts KNORR -

BREMSE etc.

AUTOMOBILE

– Mahindra & Mahindra Ltd.

– Tata Motors Ltd.

– Toyota Kirloskar Auto Parts

– Eicher Motors Ltd.

TRACTOR

– Mahindra & Mahindra Ltd.

– Escorts Ltd.

– Carraro India Pvt. Ltd.

– TAFE

ENGINE

– Kirloskar Oil Engines Ltd.

– Simpson & Co. Ltd

3. Attitude towards the Society

1. Social Welfare

As a philosophy, we have an objective concern for the welfare of the

society to restrain individual or corporate behavior from ultimately destructive

activities, no matter how immediately profitable and to lead in the direction of

positive contributions to the human settlement. We as an economic unit within the

society, irrespective of profit / loss, consider our duty to repay the debt towards

the society. Our social contribution goals:





To achieve the company’s mission, the finance team endeavors for realisation of

values of the company by meeting the requirement of:

Financing capex & support business growth through innovative finance

tools.

Employees.

The government exchequer.

Banks & financial institutions.

Customers & suppliers.

Promoters & stakeholders.

2. HR Policy

In accordance with hrm mission of “destined to scale new heights”, k fil strongly

believe that a satisfied employee is an unadvertised asset of a company. Hence kfil, are

committed to bind the organization with a common mission and common values so as to

continuously upgrade quality of work life of employee.

Creation of good working environment and shared accountability for

quality, safety and knowledge.

Adoption of improved work practices to foster the intellectual capital.

Develop people with high degree of entrepreneur ability and leadership

qualities.

Develop emotional togetherness for strong ownership.

Defining the role & responsibilities of employees to generate

empowerment and right leadership.

Encouraging teamwork, participation & involvement to effectively deal

with negative residues.

3. Marketing policy:

“In the direction of achieving the company’s mission, the marketing team- pip

endeavors for maximization of sales and realization for the company’s product while

meeting the customer’s requirement to their all round satisfaction”.

Strategies



Maintaining quality leadership

On – time delivery

Strong dealership network

Customer orientation

Customer driven

Performance tracking of competitors

4. Quality assurance department

The company is committed to achieve total customer satisfaction through

adoption of state of the art manufacturing technologies and process with continuous

improvements. The company is also committed to improve quality of work life of its employees

through improved work practices.

Partnership & Resources

Excellent organisations plan and manage external partnerships, suppliers and internal resources

in order to support policy and strategy and effective operation of process. During planning and

whilst managing partnership and resources they balance the current and future needs of the

organisation, the community and environment.

External partnership are managed.

Building, equipment and materials are managed.

Technology is managed.

Information and knowledge are managed

1. Major Business Partners

Pig Iron:

o Electrosteel Castings

o Texmo Industries

o Rajkot Engg. Association

o Laxmi Machine Works

o Menon Pistons Ltd

o Punjab Tractors Ltd

o Sriram Pistons & Rings Ltd



o Kalyani Steels Ltd

Foundry:

o Automobile

Mahindra & MahindrA

Telco

Maruti Udyog Ltd

o Tractor

Escorts

Carraro

Tafe

Punjab Tractors Ltd

o Engine

Kirloskar Oil Engines

Simpsonf

Swaraj Engine

2. Resources

Materials & Suppliers

1.Grade sand - Mangalore minerals

2.Iron ore - V.S. Laad & sons

- National minerals development

- Rajalaxmi minerals



- Guru Rajendra minerals

3.Low grade iron ore lumps - Rajapur minerals

- Bellary mining corporation

4.Low grade sponge iron - Hospet Ispat Ltd,

5.Merallurgical coke - Adhi global pvt Ltd,

- IMR metallurgical

6.Lime Stone - Sharada cements

- Vaadhiraj minerals

7.Dolomite - Vaadhiraj minerals

8.Scrap bundle - Mysore enterprises

Processes

Excellent organisations design, manage and improve process in order to fully satisfy , and

generate increasing and other stakeholders. Processes are improved, as needed, using innovation

in order to fully satisfy and generate increasing value for customers and other stakeholders.

Products and services are designed and developed based on customer needs and expectations.

Products and services are produced, delivered and serviced. Customer relationships are managed

and enhanced.

1. Production Department

An innovative technology from KTS (KORF Technological Sidervrgica Ltd.) Brazil

has helped KFIL to design and develop a MBF has come a long way and has enabled many

entrepreneurs to produce more than 500 MT of Pig Iron world over. KFIL is among the first

in India to adopt this state of art technology with computer controls to produce consistent

quality of Pig iron. KFIL also boasts of a record of projects completion of electing the first

MBF with in 18 months and second MBF within 9 months. It has got uniform crystalline

pearl tie structure it is slag free and made from the riches grade of iron ore and imported



coke. It is supplied to KFIL valued customer of the engineering industry who cater to

automotive, tractor, textile, pumps, and spun pipes segments as well as the steel industry.

2. Purchase Process

3. Finance Department

P

FloatEn uir

Vendor

Master

Existing

Vendor

Source

Vendor

Approve

Vendor

Create

Vendor Negotiation

Quotation

IPurchase

Order Supplier PO

Import

?O

Finalize

Vendor

Existing

Vendor

Yes

No

Yes

No

Yes No

Amend

Purchase



One of the most important departments in any organization is its finance

department. If this department is not well operated, the whole organization activities will

be ruined. KFIL`s finance department functions are as follow:

Functions:

o Preparation of master budget.

o Maintenance of accounting records.

o Preparation of final accounts.

o Payment and cash management.

o Funding Activity

o Internal audit.

4. Human Resource Department

In short HR is a resource, which is of immeasurable value for an

organization. The HR department is entrusted with vital function of keeping employees

happy and thus assisting in enhancing the productivity of the company. Any organization

with manpower as its chief capital is a treasure move of talent. The HRM department at

KFIL considers the employees the best foremost and major resources of the company.

Upliftment of employee growth is at center of organization philosophy of growth whichaims at providing a career in which the individual can make the maximum contribution of

employee’s common ender and at the same time better their living standard. The primary

functions of this department at KFIL are as below:

o Recruitment

o Selection

o Interview

o Placement

o Wage and salary administration

o Training and development

o Performance appraisal

o Promotion and transfers

o Human resource planning.



o Administration and welfare activities consisting of canteen and medical.

o Submission of periodicals and reports to statutory authorities.

o Ensure quality assurance system.

o Formulating and Implementing leave records of employees.

o Processing medical benefit applications.

o Processing of wage and salary of all employees.

o Implementing disciplinary action on employee.

5. Marketing Department

The marketing department is mainly focusing on the activities of Marketing

products, Pricing, Promotion and Distribution of products. These activities collectively

called as 4 Ps in Marketing.

Products: The Company has following products in its Product Line.

They are:

1. Basic Grade Pig Iron.

2. Foundry Grade Pig Iron.

3. Spheroid Grade Pig Iron.

Pricing: The name “Kirloskar” itself is the mark of quality for the customer.

The company has left the opinion of transporting Pig Iron to the Buyers site to the

Buyer. So one can buy the Pig Iron at the Company’s Site or can order.

The company has come across different Prices terminologies. They are:

o List Price

o Discount

o Allowance

o Payment Periods

o

Credit TermsPromotion: The company has appointed number of dealers throughout India

for its marketing purpose. Each dealer will get Rs. 100 PMT, as commission for the pit iron is

sells.



Credit notes are given to these dealers for their commission. Pig iron is also sold on credit

as one of the promotion tools to attract customers. Credit time depends on areas (less credit

period is for North Zone) and order they give.

Distribution: The company has got distribution network spread allover India in

form of dealership and also through company’s employees, the company has divided its

market into 7 Zones:

Zone A Karnataka Belgaum, Shimoga, Bangalore

Zone B Andhra Pradesh Hyderabad, Vijaywada

Zone C Maharashtra Kolhapur, Pune, Mumbai, Nagpur, Solhapur

Zone D Gujarat Ahmedabad, Rajkot, Surat

Zone E Rajasthan Jaipur

Zone F Delhi Delhi, Faridabad, Zodhinoor, Agra

Zone G Tamil Nadu Chennai, Coimbatore, Mudurai

6. Quality Assurance System

The company is committed to achieve total customer

satisfaction through adoption of state of the art manufacturing technologies and process

with continuous improvements. The company is also committed to improve quality of

work life of its employees through improved work practices.



BALANCED SCORE CARD

End customer

Value creation corporatecitizenship

Culture & Climate for action continuous

improvement

Strategic competencies

Grow

international

business

F

N

AN

C

A

LBe a dominant

player in domestic

market in all

segments

To be the leading

manufacturer of pig iron

castin s.

Enhance value for

channel partner

Revenue

growth

C

U

S

T

O

M

E

R

Increase accessibility for

customer

Enhance customer satisfaction through

reliable, cost effective, safe and good

value product and service

Enhance product

offering

Reduce the cost of

casting process and

making efficient

operations.

P

R

O

C

E

S

S

L

E

A

R

N

N

G

Enhance

employee

satisfaction

Align Employee

to company

strategy Create high

performance

culture

amongst

employees

Excel in

corporate

governance

social

responsibility

Design &

Development

Manufacturing and

Vendor management Sales &

Marketing

Identify and acquire

information

technology in line

with company

Develop strategic

competenciesExcel in the

journey to

excellence





Over the years VRL has pioneered in providing a safe and reliable delivery network in

the field of parcel service. It has spread its operations to Courier Service, Express Cargo & Air

Chartering to meet the growing demand of the burgeoning customer base. 3PL & Warehousing

solutions offered by VRL are tailor-made and cater to unique needs of various customers of the

industry. With the largest network in India, the VRL parcel service is indispensable for large

number of corporate houses. This network spans the length and breadth of the country and is

supported by large number of transhipment hubs. VRL operates through a network of 859

Branch and franchisees to cater its valuable customers.

Mission

o To provide the highest quality service to our customers by continuously increasing cost

efficiency and maintaining delivery deadlines.

o To encourage our employees / workforce to strive for quality & excellence in everything

they do.

o To promote team work and create a work environment that takes care of talent and

brings out the best in our employees.

Vission

o To become the premier company that cuts across various segments and emerges

as the torchbearer of each segment that the Group ventures into.

Corporate Social Responsibility

o Our corporate integrity is a critical asset and we are committed to upholding it in

everything we do. We share our expectations and opinions and strive to maintain

a workplace built on mutual values, trust and goodwill & we continue to embed

these ethical standards in our business environment. Noteworthy is the Vignyan

Yog Shivir that we organized that was conducted by Param Pujya Ramdevji

Maharaj which was attended by more than 10,000 people across the state

Objectives

Objectives of the company

• To increase the market share of “VRL”.



• To be responsive to the consumers & channel members, so as to be

competitive in

the market.

• To streamline the marketing opportunities

• To ensure competent & willing work force of organisation.

• To maintain good relationship between the employees & the employers.

• To maintain good industrial relation.

• To assist employees in attaining their personal goals so as the organisational

goal

• Enhance the individual contribution to the organization

• To help individual growth

• To select right position for right person & number of employees

The Objectives Of Luggage Section

• Delivering the goods within scheduled period by increasing the speed of

distribution.

• Providing services all over the country.

• Security and reliability in service.

• Providing value added services to the customers.

• Customer care

Finance Objectives

1. Maintenance of liquid assets

2. Profit maximization

a) Increase in revenue

b) Controlling costs

c) Minimizing risks.

3. Wealth maximization

Objectives of the Organization

• To gain all around views of management operations

• To understand the work culture

• To integrate practical experiment with theoretical concept

• To assimilate and understand the function of each department in the organization



• To develop necessary interpersonal and managerial skills

Company Data captured in Business Excellence Model and Balance Score Card Model

LeadershipExcellent leaders develop and facilitate the achievement of the mission and vision. They

develop organizational values and systems required for sustainable success and implement these

via their actions and behaviors. During periods of change they retain a constancy of purpose.

Where required, such leaders are able to change the direction of the organization and inspire

other to follow. They are responsible for:

1. Leaders develop the mission, vision, values and ethics and are role models of a

culture of excellence.

2. Leaders are personally involved in ensure organization’s management system is

develop, implemented and continuously improved.

3. Leaders interact with customers, partners and representatives of society.

4. Leaders r einforce a culture of excellence with organization’s people.

5. Leaders identify and champion organizational change.

Business Ethics

We very strongly believe that “rules are not meant to be broken” but “rules are meant to

be followed”. This belief of ours strengthens our commitment to offer services that put our

clients and us in a “win-win” situation. We believe, it is better to be “Fair” than to be “Good”.

Service Policy

To offer, high quality Air-charter service, to each and every customer, during every

single flight operations, be it pre-flight, in-flight or post-flight. We are committed to offer quality

service, as expected by our customers and match upto their expectations, time after time, every

time.



Safety and Comfortable Standards

To maintain our aircraft, pilots and human resources in absolute ready condition, to offer

safe and comfortable flight experience to our customers, through timely maintenance of the

aircraft, keeping the aircraft in Airworthy condition and training the pilots and executives, as per

civil aviation requirements

Administration:

Chairman and Managing Director- Mr. Vijay Sankeshwar

Managing Director- Mr. Anand Sankeshwar

Independent Director - Mr. Sudhir Ghate

Mr. C. Karunakara Shetty

Mr. J. S. Korlahalli

Mr. Prabhakar Kore

People

1.

EmployeesPeople are the main resources of all productive efforts in every organization. It is

assumed and accepted that human resources are the main component of an organization and the

success & failure of the organization depends on how effectively they are managed. Acquiring,

terminating, developing and properly using the human resources in the organization is essential

for accomplishing the organizational activities.

Currently the total number of permanent employees in vijayananda travels

Particularly in Bangalore division is 270. As vijayananda travels has to work for the whole day,shift system is maintained. The employees work in three shifts. The shifts and their timings are

1. Shift from 6.00 a.m. to 2.00 p.m.

2. Shift from 2.00 p.m. to 10.00p.m

3. Shift from10.00p.m to 6.00 am



ORGANISATION CHART OF VRL LOGISTICS

2. Attitude towards Society

Quality Conscious

The efficiency of our fleet of vehicles hinges on our all inclusive state-of-the-

art workshop cum service complex at Hubli (Karnataka). Every vehicle of our fleet

passes through this master service facility so that they are at peak levels of performance, leading to better cost efficiencies and time management.

Centralised Operations:

Manager

of Safet

Sr. Manager

of GA

Manager

of HR

Manager

of PMU

Assistant Officer

Sr. Officer HR &

IR

Officer of HR &

IR

Sr. Officer of

Caterin

Civil

En ineer

G.M. HRM & GA

Manager of

Environment

Dy.Manager

-Admini

Assistant-

OfficerEngineer of

Environment

Assistant-

En ineer

Assist Officer



At the core of the groups transport business is its 43 acre transport cum

warehouse complex in Varur, Hubli. This unique facility has all the essential back up

services under one roof. This complex contains the Head office Building,

Transhipment Godown, Workshop, Canteen, Drivers Rest Room, own Diesel Bunk,

Praking area etc.

Non-Conventional Energy

The journey over the last three decades was challenging and we have become

more innovative. Our Wind Energy project of 42.5 M.W. has been successfully

commissioned. CDM board has granted registration to this project under UNFCCC.

VRL is now eligible to trade in Carbon Credit

Policy & Strategy

Business Strategy

In order to capitalize on volume growth as well as key ongoing trends in the

Indian freight and passenger transportation industry, the following are the key components of

our operating and growth strategy:

• Increase freight density in the existing system

• Expansion of passenger transportation business in India

• Selecting profitable routes for our passenger transportation business

• Focus on the attractive market for LTL services

• Continue to focus on operating efficiency by establishing high-capacity transhipment

hub.

• Focus on serving a diverse, underserved customer landscape

• Maintain our commitment to time bound service, safety and quality.



Policies

• A nationally established transportation company

• Proven track record in the transportation business

• Large and established size and scale of operations

• Young fleet of vehicles in the passenger transportation business

• Low dependence on hiring third-party vehicles in the goods transportation business

• Strong in-house capabilities

• Differentiated operating model

• Experienced and motivated management team

• Ability to recruit and retain highly experienced and professional drivers

Partnerships & Resources

From the tarmac to the skies... VRL has set off on a new journey. VRL has acquired a

brand new, Premier jet 1A aircraft, manufactured by Hawker Beechcraft Inc, USA. It offers

luxurious comfort and the freedom to fly at a whim. This coupled with the legendary VRL

lineage, this venture will certainly touch the skies.

Processes

The company operates its travel based upon following two segments. They are

Fixed bus operations.

Casual bus operations.

Fixed Bus Operation

Under fixed bus operations the company makes its operations without any

alterations i.e., buses are operate as per pre determined schedules at fixed routes, but are



changed only when there is no demand for buses in these routes or uncertain things that

may occur as usual course of business.

Casual Bus Operations

Under casual bus operations the company gives buses for rent to satisfying

customer’s needs like marriage functions, trips & other occasions

Ticket Formats Maintained By Vijay-anand Travels:

The company is maintaining three formats of tickets. They are

Company’s copy.

Customers copy.

Accounts copy.

Product Profile

The Product Profile of Vijayananda Travels is classified into following groups.

Based Upon The Seating Capacity:

Buses Types

Capacity

Based Upon Varieties Of Coach:

Departmentation at Vijayanand Travels:

Departmentation is the process of grouping the various activities into separate

units of department. A department is the district section of the business establishment

concern with a particular group business activity of like nature. In business units

department is necessary for sub dividing the activities and easy reference.

Departmentation in vijayanand travels is done on the basis of functions i.e.

grouping of the activities into major functional departments. Company is having different

departments in each branches depending on function of those branches. There are five

departments in Bangalore branch.

These departments are

1. Human resource department

2. MIS department

3. Marketing department



4. Finance department

5. Information technology department.

Human Resource Department

The principal component of an organisation is its human resources or its

people at work. Human resources have been defined from the view point of the

organization “it is the sum of total of all the knowledge, skills, inherent& creative

abilities, talents aptitudes & the knowledge acquired of its employees.

Therefore human resource is having at most importance in an organisation as

most of the problems in organizational settings are more human and social in nature

rather than being physical, technical, or economical.

Thus human resources are the most valuable & unique assets of an

organization. The successful mgt. of organisation human resources is an exciting

dynamic &challenging task especially at a time when the world has become a global

village & economics are in a state of flux. The scarcity of talented resources & the

growing expectations of modern day worker have further increased the complexity of

human resource function.

Even though specific human resource functions/activities are the

responsibility of the human resources department. The actual management of human

resources is responsibility of all the managers in an organisation. It is therefore

necessary for all manager to understand & give due importance to the different

human resources policies and activities in organisation.

Human resource department deals with human relations & legal activities. It

is the people who make organization”success or allow is to be HRM management in

the life and wealth of organisation”.



Manpower planning at VijayAnand Travels

The HOD of HR is required to fill the prescribed manpower requirement form and

submit it with the detailed job profile for the particular post. The HOD shall forward the

same for the approval of the managing director before handling the further processing.

Manpower resources for VijayAnand Travels

The major sources for manpower, for vijayanand travels includes

1. Extract from data bank.

2. Release of advertisements in leading newspapers.

3. Campus selection.

4. Employee referrals.

Selection Process at Vijayanand Travels:

1. Fresher:

Fresher are required to take up a written test before actual interview. The Interview panel

interviews the short listed candidates.

2. Candidates With Experience:

The members in experienced candidates panel is short listed and then called for final interview.

3. Senior Level Members:

In the case of engineers and for senior’s position in the company the Interview panel shall consist

of MD/GM along with other members. Weighted average of the scores is taken and the candidate

is selected.

4. Recruitment:

Recruitment has a direct appointment at VRL. It is done on the basis of CMD’S discrepancies.

Performance Appraisal:



Performance appraisal is done periodically by promoting and transferring employees on the basis

of their experiences.

Attendance:

Attendance is recorded in registers and maintained to check the regularity of employees.

Trade Union:

There is no trade union existing at Vijayanand Travels.

Compensation:

On the basis of CMD”S (chairman-cum-managing director) discrepancies the compensations are

determined.

PF, ESI:

12.33% of employee’s salaries are paid towards PF and gratuity. ESI is included as medical

reimbursement facility.

Fringe Benefits:

There are no extra fringe benefits paid to their employees at vijayanand travels.

Training Facilities At Vijayanand Travels.

In rapidly changing society, employee training and development is not only an

activity but it is desired. Training helps the peoples to improve their skills and

knowledge to cope with the requirements.

Vijayanand travels believe in continuous orientation of members to create

atmosphere that is for the fulfillment of specified objectives.

On The Job Training Method:



It is on the job training provided by the supervisors at Vijayanand travels. There is no extra

programme conducted to impart skills, but the employees are assigned to task as soon as they

appointed to their positions.

Leave:

Leave is calculated as sick leave and casual leave. Leaves are not encashed but they are

forwarded to next year working days.

MIS Department

Vijayanand travels have well equipped information system, which serves the

information needs of the company. Local area network (LAN) connects the computers. The

operating system used is windows 2000, and various applications used are,

Customer Relationship Management(CRM)

Enterprise Resource Planning(ERP)

MS-OFFICE

SAP

The skill required to operate the applications varies depending upon the functions for

which application is used. This department provides required information for all the departments

as and when demands. The efficiency of whole organisation is solely depends on, how well its

information resources are maintained.

Organisation Structure Of MIS Department:

GM (MIS)

ASSISTANT

CLERK



Marketing Department

As markets change, so does marketing. Marketing is no longer a company department charged

with a limited number of tasks. managing advertising sending out direct mail, finding sales leads

providing customer service. marketing must does a company wide understand. It must drive the

company vision mission and strategic planning.

Marketing is about deciding who the company wants as its customers, which leads to

satisfy what products & services to offer what price to set, what communications to send a

receive what channels of distribution to use & what partnership to develop.

Marketing deals with the whole process of entering markets, establishing

profitable Position and building loyal customer relationship. This can happen only if all

departmental work together, engineering designs the right product finance furnishes the required

funds purchasing buys quality material, production makes quality products on time & accounting

measures the profitability of different customers, product & areas.

Marketing is a comprehensive and it includes all resources, and a set of

activities necessary to direct and facilitate the flow of goods & services, from producer to

consumer in the process of distribution. Marketing encompasses all activities of exchange made

by producer & middlemen in relation to trade for the purpose of satisfying customer demand.

Presently the Vijayanand travels are vested with the responsibility of

marketing its products under the corporate brand name of “VRL”.

Objectives

To increase the market share of “VRL”.

EMPLOYEES



To be responsive to the consumers & channel members, so as to be competitive in the market

To streamline the marketing opportunities.

Agents Strength:

This VIJAYANANDA TRAVELS is having more than 1700 agents in and around the

Bangalore. The agents run business based on commission basis. The company’s standard

commission is 10% on the total amount of the Passenger Tickets and 20% on the total amount of

languages booked by the agents. The agent must have a fixed deposit or bank guarantee for Rs

50,000/-, and the business done by him much suit the requirements of Vijayananda travels to

serve its customers.

Marketing department of vijayanand travels are classified as 2 different sections like,

1. Luggage section

2. Travels section.

Luggage Section:

The marketing manager executes this department. Under his control 10 booking

clerks are working. They are working towards meeting the customer satisfaction needs, by

providing speedy and safe delivery of cargos like documents, packages, samples, Exhibition

material etc.

The company transports goods -and services, either through paid basis or to

pay basis. (Paid basis refers to the process where in customer has to pay the transportation

charges in advance before delivering the goods. To-pay basis refers to the process where in the

customer pays transportation charges after goods delivered.)

Structure Of Charges:

The vijayanand travels will charges different prices for its services depending upon the size of

the goods transformed. They will charge Rs 20, if the documents are below the minimum

standards weights prescribed by the company. These charges will vary if documents exceed

minimum size.



For parcel boxes they will charge Rs. 2 per kg. This rate is fixed even though the size of order is

small or big.

The Objectives Of Luggage Section:

Delivering the goods within scheduled period by increasing the speed of

distribution.

Providing services all over the country.

Security and reliability in service.

Providing value added services to the customers.

Customer care.

Travels Section:

Structure of travel section in Vijayanand Travels resemble as follows.

CUSTOMER CARE

ACCOUNT

SECTION

CONTRACTORY

BOOKING

PARCEL BOOKING

TICKET BOOKING



The general manager of travels heads this department. And this general manager having the

following responsibilities. They are as follows.

1. He has to inform the head office regarding all the activities pertaining to travels

department in Bangalore division.

2. He is responsible to solve the consumer grievances and conflicts immediately as and

when they occurred.

3. Before taking any decision regarding company matters he has to consult head office.

If any loss occurred because of his negligence, he has to bear those losses

from his pocket.

The Vijayanand Travels is developing effective use of information technology. Right from the

pick up point, the precise status of the consignment needs are monitoring at every stage of its

distribution channel.

Structure Of Charges:

Rs 1800/-per day is charged if the total distance is traveled is within 100 kms. If the travelled

distance is more than 100kms, then charge will be calculated as per km.

Promotional Activities:

The budget for the promotional activities by vijayanand travels is set on the basis of “objective &

task method”. Such budget is more advantageous as it well planned on the basis of objectives to

be achieved, and the tasks involved there in.

Distribution Channel:

The distribution channel of vijayanand travels is very simple. It includes only

the agents, who bridge the gap between vijayanand travels & its consumers. These are selected

TRAVELS



on the basis of their location in the city or town where company operating its business . The

agent must have a fixed deposit or bank guarantee for Rs 50000/-& the business done by him

much suit the requirements of Vijayanand travels to serve the ultimate customers.

Information Technology Department:

The information technology division of VRL is located in Varur. This division oversees the

information technology of the VRL, including the computerizing of their branches, hubs and

officers.

The computerization of the hubs has facilitated mailing of delivery reports and quick flow

of information between different offices, delivery offices, and the transphirent hubs of the

company this enables effective coordination and tracking of the consignment.

The information technology department prepares software which are hardware related such

office automation-related, courier tracking and accounting software.

Global positioning system (“GPS”)-VRL developed their own GPS based tracking device which

VRL installed in selected devices. In addition to keep track of the movement of the vehicles , the

GPS system also tracks the time spent by the vehicles when not in motion, the location it has

stopped in addition to traveling pre assigned route to be followed by the vehicle.

This discourages their drivers from not complying with the instructions given to them regarding

the route and time sheets that they are required to comply with.

Most of the software requirements are met in-house and in the event that any activity is

outsourced by the company. The source code is retained by the company to ensure that it can be

used at the later stage as per the requirements of the company.

Important Developments Of Information Technology Division Are:

1 .Vehicle Maintenance Tracker- This application schedules the maintenance of the entire fleet

and generates reminders helps in avoiding the premature failure and the excees consumption of

parts.



2. Vehicle Traffic Application:-This application controls the entire movement of the vehicles

and keep tracks the driver’s performance in terms of the fuel average and distance traveled. This

also tracks the advance amount paid to the drivers and the diesel vouchers issued for an route

fuelling. This application online and ensure access to this data from any part of the world.

3. Consignment Delivery Application:-This application is used in delivery branches to raise

online cash receipts and track the consignment. This application also maintaince a record of the

stock in our company’s godown and it is used to answer queries from the customer regarding the

arrival of consignments. The records of tracks and delivery particulars are updated every 24

hours.

4. Hub Applications: This application receives the consignment from other hubs and booking

branches and dispatch them to the final destination and some time reroute to other hubs.

5. Online Bus Ticket Booking System:-This application hosted online on their web server and

agents and passengers log on to this application for booking passenger tickets.

6. Remote access to networked computers:-: This application enables their company to take

remote access of any computer system linked to the networks. This facility is used for

monitoring the operations of their employees and also for conducting training sessions for the

employees in remote locations

Finance Department

“Finance is to business is as blood is to human” Finance is defined as fund

where as business is defined as an activity controlled with planning raising controlling &

administering of fund used in the business.

In business undertaking or an educational institution or in a hospital or in

an art society or elsewhere management of funds is the primary concern of financial

management.

The modern thinking in financial management today is that financial

manager does not perform the role of score keeper of financial data & information & arranging

funds whenever directed to do so. Rather they occupy key position in top mgt. And play a



dynamic role in solving complex management accords a far greater importance to management

decision making and policy.

Due to liberalization privatization & globalization the subject of financial

management has been changing at a rapid & pace & it has acquired a critical significance now a

days.

The basic requirements for an organisation for its survival & existence are fund

or finance. Financial management is concerned with the managerial decisions that results in

acquisition & financing long term & short term funds. It deals with the acquisition of specific

assets the selection of specific liability as well as size & growth of enterprises.

Finance department is concerned with the essential finance activity for organisation to carry out

activities in effective way. This helps the organisation to achieve soundness in working &

dealing with others is required from the beginning of organisation & further for successive

stages.

OBJECTIVES:

A. Maintenance of liquid assets.

B. Profit maximization

1. Increase in revenue

2. Controlling costs

3. Minimizing risks.

C. Wealth maximization

The functions of finance department in Vijayanand Travels is been grouped

Under following heads such as,

1. Maintaining of cost accounts.

2. Planning of funds.



3. Recording of the transactions.

4. Preparing of financial statement.

5. Evaluation of financial performance.

6. Arranging for internal as well as external audit.

The general manager of finance heads this department. Under his control there are 12

employees’ who handled entire financial transactions in Bangalore division. They will

maintain records to pertaining to Bangalore division only. Preparation of final statements of

whole company is done by the head office, which is situated in Hubli.



BALANCED SCORE CARD

End customer

Value creation corporate

citizenship

Increase the market

share of “VRL”

F

N

AN

C

A

L

Revenue

growth

Wealth

maximization

Maintenance of

liquid assets

Profit

maximization

To be responsive to

the consumers &

channel members

Providing value added

services to the customers.C

U

S

T

O

M

E

R

Delivering the goods

within scheduled period Security and reliability

in service

Participate in

Corporate

Social

Responsibility

P

R

O

CE

S

S

Ensure competent& willing work

force of

streamline themarketing

opportunities

maintain good

industrial

relation



Culture & Climate for action continuous

improvement

Strategic competencies

The balanced score card is a strategic planning and management system that is used extensively

in business and industry, government, and nonprofit organizations worldwide to align business

activities to the vision and strategy of the organization, improve internal and external

communications, and monitor organization performance against strategic goals.

We are designing the Balance score card for VRL Logistics. So we have taken their Main

objective at the top. Then we are seeing the financial perceptive to achieve that goal.

In the Financial perceptive we wrote the financial objectives of the VRL which are profit &

wealth maximization. So we mentioned those in the BSC. In this we are having 1 more that is

Corporate Social responsibility. How they are planning and achieving this.

Then we are looking into the Customer prospective which is more important to any organization.

So we are mentioning here how the VRL treats the customer and how they are servicing the

customer and how important the customer is for them. And what are measures they are taking for

Satisfying the customer.

After Customer prospective we are looking into the process following by the organization. Here

VRL following that getting skilled labor and using the market opportunities and to maintain a

good industrial relations to get good market share these are the things are having in their process

to achieve the organization goal.

And in the learning they are very much care about their employees and their needs. They are

assisting them in achieving the personal goals through which they can able to achieve the

Enhance the

individual

contribution

to the

organization

Assist Employee

to attaincompany goals

Enhance

employee

satisfaction

L

EA

R

N

N

GIdentify and acquire

information

technology in line

with company

Develop strategic

competencies

Excel in the

journey to

excellence



organization goals. And the strategic competencies of the organization are they are having

software which was developed by the people who are working in their organization with a team

of professionals. By using the technology they are able to maintain the every data and they are

able to organize the many number of vehicles and many number processes.

Specific Linkages between Processes & Outcomes (in both models)

S.No. Processes Outcomes

1. No changes in scheduling. For example

service from Bombay to Bangalore

scheduled for all days of the week will

continue to run even if there are no parcels.

Through this process VRL logistics is able to

give continued service to the customers and

there are no changes in the schedules of

service.

2. Interrupted Service i.e. service from Bombay

to Bangalore would pick parcels from places

on the way like Hubli etc. if available.

Through this VRL logistics is able to cover

many places and hence able to provide the

customers broader service.

3. Regular servicing of the vehicles is done and

employees undergo routine training.

Through this VRL is able to avert many

accidents and ensure safe delivery of the

packages.

4. Provides good motivation for the employees

and proper condition of the vehicles are

maintained.

This helps them ensure on time delivery of

the packages which adds more satisfaction to

the customers.

5. Large clients are contacted on a routine

basis for feedback

This help them maintain good relationship

with clients and therefore retain the

customers

6. VRL does research on a routine basis and

ascertains new potential routes and

introduces new routes of service

Through this they are able to provide the

customers much broader and increasing

service every year.

Balance Scorecard Model

S.No. Processes Outcomes

1.Research process for accessing potentialservice

It helps in designing expansion strategies

in terms of number of vehicles and new

service routes2. VRL houses driving training school and

provides routines training to the drivers

It helps help them reduce the number of

accidents which happen3. VRL provides good motivation by

rewarding regular on time deliveries andreduction of fuel usage

Motivation in terms of money and

promotion motivates the employees tostrive more towards those goals.



Suggestions for future visits

We as a group found this Industrial visit very useful for understanding the various

processes existing in the organizational structure. The group had a great learning experience at

KFIL and VRL Logistics. Our suggestions for the teams visiting the industries in future are:

a) The group visiting the organization should have a clear understanding of what the

organization is all about and what kind of services and solutions the organization provides to its

customers.

b) The group should be aware as to how the organization contributes to the customers,

society, and people. One should have knowledge of all the relevant points the group wants to

know about the organization and frame the questions based upon the same perspective thus

eliminating any sort of inconvenience in the organization during the time of visit.

c) Questions should be framed prior to the industrial visit and a copy of the same should

be sent to the HR manager to address the same questions to the various department heads in the

organization.

d) The group should coordinate with the HR of the organization because they act as a

linking bridge between the students and the various department heads.

e) The group should make sure that in addition to business excellence and balanced score

card they should also have a clear understanding of several operations management concepts and

terms.

Documents

II Report- Vrl & Kfil