Chapter One

INTRODUCTION TO THE INDUSTRY

HIGHLIGHTS:

History of the automobile industry

Status of the automobile industry in the world

Introduction to the automotive industry

Auto component manufacturers

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Chapter One

HISTORY OF THE AUTOMOBILE INDUSTRY

Automobiles as we know them today are the product of centuries of tinkering and innovation.

Automobile production has grown from small companies making simple so-called horseless

carriages to international corporations that mass-produce advanced, reliable automobiles for

consumers.

Early automobile concept

In the 15th century, Italian inventor Leonardo da Vinci envisioned possibilities for

power-driven vehicles. By the late 17th century, English physicist Sir Isaac Newton had

proposed a steam carriage, and by the late 18th century French army captain Nicholas-Joseph

Cugnot had actually built one. By the mid-1800s, the popularity of steam vehicles began to

decline because they were dangerous to operate and difficult to maintain. At about the same

time, inventors became interested in the internal-combustion engine.

Robert Street of England filed a patent in 1794 that summarized how an internal-

combustion engine might work, but it was Belgian-born French inventor Jean-Joseph-Étienne

Lenoir who built the first commercially successful internal-combustion engine in 1859.

Lenoir’s engine had a carburetor that mixed liquid hydrocarbons, which formed a vapor. An

electric spark in a cylinder ignited the vapor. By 1876 German shop clerk Nikolaus August

Otto had improved on Lenoir's engine, and the Otto engine became the model of the internal-

combustion engines used today. Germans Gottlieb Daimler and Karl Benz attached motors to

tricycles and automobiles, building what are regarded as the first modern cars in 1885 and

1886 (DaimlerChrysler AG).

In America, lawyer George Baldwin Selden studied many of the European engines at the

Philadelphia Centennial Exposition of 1876, then redesigned what he considered to be the

best among them. He reduced the engine weight so it could power a light road vehicle.

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Selden patented his engine, so he ultimately received a royalty, or small payment, for almost

every car made in the United States.

Charles Edgar Duryea and his brother Frank are credited with the first production

automobile made in the United States. Their small company produced 13 cars in 1896,

ushering in the automobile industry. Only a few more cars were sold in the following year,

and the brothers split up to follow separate interests.

Henry Ford and Mass Production

Several small automobile manufacturers were making cars in the early 1900s, but

American Henry Ford helped popularize the idea that anyone could own a car. Ford

successfully challenged the Selden patent in court, opening the door for increased automobile

manufacturing. Ford achieved initial success by making cars in large quantities to reduce

costs and by making them simple enough so many consumers could easily operate them.

Ford standardized parts and reorganized factory production to maximize efficiency.

Ford made the sturdy, black Model T using mass production, the most economical way

to make the maximum number of similar copies of the car. He understood that efficient mass

production would lower car prices, making cars affordable for the average person, thus

generating a huge market. From 1910 to 1924, Ford cars decreased steadily in price as they

improved in quality. The Ford Model F in 1904 weighed 630 kg (1,400 lb), had a two-

cylinder motor, and sold for $1,200. By 1924 the Ford Model T touring car was heavier at

680 kg (1,500 lb), had a more powerful four-cylinder motor, and included a top and

windshield—yet it sold for only $290. Ford made only minor changes to the Model T for

nearly two decades, and more than half of the cars sold in the United States were Model Ts

during many of those years.

Other Automakers

While Ford was perfecting his Model T, William C. Durant established the General Motors

Corporation (GM) in 1908. Durant combined the Buick, Oldsmobile, and Oakland

companies, and later Cadillac, to form GM. The firm started by Louis Chevrolet was added

in 1918. General Motors weathered numerous financial crises in its early years, finally

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gaining stability when the du Pont family bought much GM stock (since divested) in 1920.

The invention by Charles Franklin Kettering of the electric self-starter in 1912 was a

benchmark in U.S. automotive development, but others quickly followed, including balloon

tires in 1921. Among other U.S. automotive pioneers were brothers John and Horace Dodge,

machinists and bicycle builders after whom the Dodge car is named, and Walter Percy

Chrysler, a railroad worker who later formed Chrysler Corporation. Ford, GM, and Chrysler,

known as the Big Three, eventually became the dominant automakers in America.

In 1914 Ford announced a generous, unprecedented $5 per day wage for workers who

were with the company more than six months, doubling the previous wage. He wanted

workers to be able to afford the cars they made, but he also wanted to stabilize his workforce,

which had high turnover due to the repetition of assembly-line work. U.S. assembly line

production satisfied the huge American market for vehicles and allowed American carmakers

to dominate early auto manufacturing. By 1916 annual U.S. auto production reached one

million units, a level not reached by any other country until England about 40 years later.

By 1920 Ford's success in building an inexpensive, durable car had produced a large

secondhand car market, which meant that new Fords had to compete with old Fords. In the

late 1920s and early 1930s General Motors Chairman Alfred Pritchard Sloan, Jr., decided to

follow a different strategy. He implemented the annual model and offered different lines of

cars at different prices, creating a ladder of consumption that consumers could climb. These

concepts helped GM challenge the dominance of Ford. In 1924 GM had about 19 percent of

U.S. new-car sales and Ford had just over 50 percent. Just two years later GM cut Ford’s lead

down to 35 percent and raised GM’s market share to 28 percent.

European and Japanese automakers were also growing in this new industry. In 1914 the

company that later became Nissan Motor Co., Ltd., completed its first car in Japan. Fiat

produced automobiles in Italy, and Daimler and Benz merged together in 1926 to begin

production of the Mercedes-Benz line of automobiles. In 1928 the German manufacturer

Bayerische Motoren Werke AG (BMW), also known as Bavarian Motor Works, began

building automobiles.

The Great Depression of 1930’s

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Numerous automobile manufacturers, both big and small, existed during the early years of

the industry, but increased competition began to reduce the number of companies. The

economic depression in the United States following the 1929 stock market crash brought

even more consolidation and competition to the auto industry. Many carmakers, such as

Duesenberg with its stylish models, disappeared during the depression. Consolidation and

sheer size, as well as innovation, helped the Big Three automakers survive. Thinking that

farmers might gain by producing crops that could be turned into fuel or raw materials, Ford

built a soybean processing plant. Soon two pounds of every Ford were made from soy

products. General Motors survived and thrived with the standard volume concept, a financial

strategy that has endured. GM set its prices to produce a 20 percent return on investment

based on what it sold in an average year. Profits soared when sales were above average, and

GM would still profit during leaner years.

Status of Automobile Industry in World

Automobile industry that produces automobiles and other gasoline-powered vehicles, such as

buses, trucks, and motorcycles. The automobile industry is one of the most important

industries in the world, affecting not only the economy but also the cultures of the world. It

provides jobs for millions of people, generates billions of dollars in worldwide revenues, and

provides the basis for a multitude of related service and support industries. Automobiles

revolutionized transportation in the 20th century, changing forever the way people live,

travel, and do business.

The automobile has enabled people to travel and transport goods farther and faster, and

has opened wider market areas for business and commerce. The auto industry has also

reduced the overall cost of transportation by using methods such as mass production (making

several products at once, rather than one at a time), mass marketing (selling products

nationally rather than locally), and globalization of production (assembling products with

parts made worldwide). From 1886 to 1898, about 300 automobiles were built, but there was

no real established industry. A century later, with automakers and auto buyers expanding

globally, auto making became the world's largest manufacturing activity, with nearly 58

million new vehicles built each year worldwide.

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As a result of easier and faster transportation, the United States and world economies have

become dependent on the mobility that automobiles, trucks, and buses provide. This mobility

allowed remote populations to interact with one another, which increased commerce. The

transportation of goods to consumers and consumers to goods has become an industry in

itself. The automobile has also brought related problems, such as air pollution, the emission

of greenhouse gases that contribute to global warming, congested traffic, and highway

fatalities. Nevertheless, the automobile industry continues to be an important source of

employment and transportation for millions of people worldwide.

Economic Importance

Automobile manufacturers are among the largest companies in the world. These corporations

are often multinational, meaning they have subsidiaries and manufacturing plants in many

different countries. These companies often share parts, use parts made in foreign factories, or

assemble entire cars in foreign countries. The three major automobile manufacturers in the

United States—General Motors Corporation, Ford Motor Company, and Chrysler, formerly

DaimlerChrysler AG—provide much of the industry's total direct employment in the United

States, but increasingly foreign automakers, such as Toyota Motor Corporation and Nissan

Motor Co., Ltd., are building automobile assembly plants in the United States.

Foreign automakers are taking advantage of tax incentives and laws that discourage union

organization in the Southern United States, in particular. Eleven foreign-owned auto plants

operated in the United States in 1993. By 2007 that number had grown to 28. Many of these

plants were located in such states as Alabama, Mississippi, South Carolina, Tennessee, and

Texas.

Automotive parts manufacturers are another large section of the U.S. auto industry,

comprising about 5,000 firms, including Japanese, European, and Canadian companies.

These firms supply the original equipment market (for manufacture) and the replacement

parts market (for maintenance and repair). By some estimates, for every job created in the

automobile assembly industry, three to four jobs are created in the automotive parts industry.

Numerous other industries support the automobile industry. These include the insurance,

security, petroleum, and roadway design and construction industries. Still other industries,

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such as motels, drive-in theaters, and fast-food restaurants, owe their existence to the

mobility provided by the automobile.

Domestic Impact

The automobile industry directly influences the economies of the United States and other

countries around the world. In a typical year, the U.S. automobile industry generates between

12 and 14 percent of manufacturers’ shipments of durable goods (products designed to last at

least three years). Automobile production consumes large amounts of iron, steel, aluminum,

and natural rubber. The automobile industry also consumes more copper, glass, zinc, leather,

plastic, lead, and platinum than any other U.S. industry.

Rising imported car sales in the United States during the 1980s threatened the economic

strength of U.S. automakers. Domestic sales rebounded in the 1990s, but as the 21st century

began, foreign carmakers resumed making inroads in U.S. car sales. Ford saw its car and

truck market share in North America fall to about 17 percent in 2005, returning to its

percentage share in the 1980s, and General Motors saw its North American market share

drop to 26 percent in 2005. In July 2007 foreign automakers outsold U.S. car companies in

the United States for the first time ever, taking 51.9 percent of the market in cars and light

trucks, including sport utility vehicles (SUVs). In the first quarter of 2007 Toyota overtook

GM as the largest car seller worldwide.

Foreign Trade

Sales of U.S. motor vehicles to Americans are expected to remain near the same level in the

future, with about 1 to 2 percent growth per year, while foreign markets are expanding at

rates that are two, three, and even ten times faster. Because exports will be essential to

expanding the auto and auto parts industries, U.S. trade officials have negotiated trade

agreements such as the Memorandum of Understanding with Korea (1993), the North

American Free Trade Agreement (NAFTA, 1994), and the U.S.-Japan Automotive

Framework Agreement (1995). These and other agreements have increased automobile and

other exports to Japan, Mexico, and Korea many times over.

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In 1994 the United States successfully promoted the Uruguay Round of the General

Agreement on Tariffs and Trade (GATT), which helped American auto export potential

because it improved access to both major and developing markets. These initiatives have

helped the U.S. automotive industry achieve the highest level of exports on record.

Introduction of Automotive industry

The automotive industry designs, develops, manufactures, markets, and sells the world's

motor vehicles. In 2008, more than 70 million motor vehicles, including cars and commercial

vehicles were produced worldwide.

In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million in

Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in Latin

America, 2.4 million in the Middle East and 1.4 million in Africa. The markets in North

America and Japan were stagnant, while those in South America and Asia grew strongly. Of

the major markets, Russia, Brazil, India and China saw the most rapid growth.

About 250 million vehicles are in use in the United States. Around the world, there were

about 806 million cars and light trucks on the road in 2007; they burn over 260 billion

gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in

China and India. In the opinion of some, urban transport systems based around the car have

proved unsustainable, consuming excessive energy, affecting the health of populations, and

delivering a declining level of service despite increasing investments. Many of these negative

impacts fall disproportionately on those social groups who are also least likely to own and

drive cars. The sustainable transport movement focuses on solutions to these problems.

In 2008, with rapidly rising oil prices, industries such as the automotive industry are

experiencing a combination of pricing pressures from raw material costs and changes in

consumer buying habits. The industry is also facing increasing external competition from the

public transport sector, as consumers re-evaluate their private vehicle usage. Roughly half of

the US's fifty one light vehicle plants are projected to permanently close in the coming years

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with the loss of another 200,000 jobs in the sector, on top of the 560,000 jobs lost this

decade.

Auto Component Manufacturers

The next big thing to happen in India after software, textiles, pharmaceuticals and BPO

would undoubtedly be the auto component manufacturing industry.

The global automotive component manufacturing industry is estimated to have a market size

of around $1trillion. Ford Motors, Delphi Corporation, Caterpillar, Cummins, International

Truck and Engine Corporation and last but not the least General Motors (GM) are some of

the leading global automobile components manufacturers of the world. With importations of

components worth $69 billion a year, the US stands at the top of all the auto component

markets the world.

Auto Component Manufacturing Hubs

The main automobile components manufacturing hubs in India are situated in Chennai, Pune

and Gurgaon. The magnitude of the Indian auto component manufacturing industry stands at

Rs 25,000 crore ($5 mn approx.). Though relatively small, the Indian automotive component

manufacturing industry due to a huge talent pool of skilled automotive engineers and access

to the latest technologies has a great potential to emerge as a big player in the near future.

Used Car Component Manufacturers: Those customers eager to buy used cars can revamp

their car with used car components. Used car components include Engine Parts, Steering

Parts, Suspension and Brake Parts and Electrical Parts. There are a number ways to sell a

used car i.e. through car owners, car dealerships, car agents, car rental companies at nominal

rates.

ACMA

According to the Automotive Component Manufacturers' Association of India (ACMA), the

domestic Indian auto component manufacturing industry is heading for a whopping 18%

growth in the coming years compared to the export market which is estimated to reach $2.7

bn by the year 2010.

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Lacking the required infrastructure, the Indian auto component manufacturing industry

falls way behind the major global players in terms of production capacities. Due to this fact,

it also lags behind other nations in getting large manufacturing orders. Or even if it manages

to get one, it ranges below the $100 mn mark, which is considered a mere figure as per the

automotive industry standards. Though striving to better its standards, the Indian auto

component manufacturing industry has registered a robust growth in the recent past. The

three main factors providing impetus to this industry are the ever increasing domestic

automobile industry (two-wheelers, commercial vehicles and passenger cars), the aftermarket

sales and servicing industry and the outsourcing of component manufacturing to India and

China by the global titans to cut down on their cost of productivity and thereby laughing all

the way to the banks. To improve upon the auto component industry in India, the need of the

hour is to focus on its competitiveness, learn the best manufacturing practices, be quality

conscious and at the same time inculcate a prompt delivery culture.

The automotive component industry is an important sector of the Indian economy and a

major foreign exchange earner for the country. There are around 400 major players in the

auto component sector. Most of them are distributed in the north, south, and, western parts of

India around major Automotive Vehicle Manufacturers (AVMs). These AVMs contributed

largely towards the development of component suppliers through technical and or financial

collaborations.

The automotive component industry manufactures a wide range of parts including castings,

forgings, finished, semi-finished components, assemblies, and subassemblies for all types of

vehicles produced in India.

Presently, the Indian automotive component industry is highly fragmented. This industry can

be divided into the organized and the unorganized categories of manufacturers. The

organized component manufacturers supply components to at least one of the Original

Equipment (OE) vehicle manufacturers. They also have access to technology due to their tie-

ups with some of the foreign collaborators or through associate AVM. The unorganized

sector predominantly caters to the

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The OE market is predominantly catered to by the organized sector. The 400 odd

organized producers contribute around 80 percent to this market. Presently, these

manufacturers have grown in size and numbers beyond the control of OE manufacturers.

They control about 65 percent of the aftermarket

There are 402 medium and large key players in auto components in the organized sector

along with 6000 ancillary units. However in the unorganized sector there are approximately

5000 SSIs. The direct employment generated by the medium and large firms in the organized

sector is 2, 50,000. No figures are available for unorganized sector.

The geographical spread of medium and large companies as per records of Automotive

Component Manufacturers Association of India (ACMA) is as under

North region 161

Western region 123

Southern region 91

Eastern region 27

Tamilnadu current annual output in the automotive sector is estimated to be $3-3.5

billion with an estimated share of 25 per cent in the Indian automotive Industry and its

contribution to the State's Gross State Domestic Product is 7-8 per cent. Tamilnadu’s auto

components sector constitutes 35 per cent of India’s auto component production that is

produced in units situated in Chennai. The Tamilnadu State government plans to transform

the state into one of the top three manufacturing hubs for automotive and auto ancillary in

Asia by 2015.

There are 107 key players in Tamilnadu’s Auto Component Industry with an investment of

about Rs.36000 million ($ 800 million). The output is US $ 1,2 billion out of which the

exports are US $ 140 million. The auto component industry in Tamilnadu provides

employment to about 45,000 people. More than 50% of the companies are ISO certified

while 26% are QS certified. The Key OEM customers of auto component industry in

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Tamilnadu are GM, Ford, Daimler Chrysler, BMW, Volvo, Nissan, Piaggio and New

Holland. Kerala, however, is not having a very well developed auto components industry.

So all those people who are crazy about speed, automobile are indeed a prized

possession for them. With the increased number of car and two wheeler loans and finance

schemes available in today's market, it is not that difficult to purchase the same. However, if

you have already decided to purchase a vehicle, then before the act of purchase, do get to

know something about the key players who dominate this market.

This section covers the key facts about major players operating in the Asian automotive

industry, such as General Motors, Toyota, Ford, Nissan Motor Company Ltd., Honda and

Hyundai.

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CHAPTER TWO

INTRODUCTION TO THE COMPANY

HIGHLIGHTS:Inception of the companyNature of businessProduct profileMission of the companyVision of the company

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Improvement Initiatives

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Chapter 2

Inception of Ashok Kumar Minda Group

Founded in 1958 by Shri S. L. Minda in Delhi, the Minda Group today is one of the leading

manufacturer of automobile components with a turnover of Rs. 1375 Crores ($ 275 million)

for 2008-09 and employs more than 7000 people India-wide & Overseas.

The group is a major supplier to OEM's both in India and overseas. The group companies are

accredited with quality and environment certification and have collaborations and strategic

alliances with international manufacturers. Ashok Minda Group manufactures different lines

of automobile parts that broadly fall under the following categories:

Automobile Security Systems

Connective Systems

Instrument Panels

Die Casting

Polymer

Business Philosophy

Customer support

Focus on Technology to create World Class Products

Value for Money

Continuous Improvement

Organization & Management

To ensure product specialization and optimization of capacity, businesses are

managed professional & independently by various companies in the Ashok Minda

Group by Group Chairman: Mr. Ashok Minda

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Company Profile:

For over five decades, MINDA has been a major presence in India's automobile industry.

These fifty years have been interspersed by a number of technological innovations that have

gone on to become industry standards.

For the technological edge, we have a dedicated R&D facility and collaborations with the

pioneers and leaders of the Automobile Industry.

For assimilating the latest technologies, Minda has entered into strategic alliances and

technical collaborations with leading international companies. This has provided Minda with

the cutting edge in product design and technology to meet strict international quality

standards.

The Groups' companies are accredited with QS 9000 and ISO-14001 certification from

TUV, GERMANY. MINDA are one of India's leading manufacturers of Security systems,

wiring harnesses, Couplers & Terminals and Instrument Clusters, Die Casting, Polymers

catering to all major two & four wheeler vehicles manufacturer in India. The products are

well accepted worldwide both with O.E.M's and the after market.

GROUP COMPANIES

Minda Management Services Ltd.

Minda Valeo Security Systems Pvt. Ltd.

Minda Corporation Ltd.

Minda SAI Ltd.

Minda Stoneridge Instruments Ltd.

Minda Furukawa Electric Pvt. Ltd.

Minda Silca Engineering Ltd.

KTSN

Minda Autocare Ltd.

PT Minda ASEAN

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Minda Schenk Plastic Solutions

The red coloured points represent the location of Ashok Minda Group in India.

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Red dotted area represents the location of Ashok Minda Group through world wide.

NOIDA PLANT ( MINDA CORPORATION LIMITED)

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Minda Corporation Ltd being one of India’s leading automobile industry is now

spreading its wings in USA, Japan, Korea and many more countries and its new

manufacturing unit is developing connective systems.

Minda products are exported to all major foreign markets. A global standard in quality

and environment, constant innovation and collaboration with major global suppliers has

given Minda the technology and expertise to access manufactures abroad. The most

important foreign markets are Europe and ASEAN.

About the history Minda Corporation Ltd was known Minda Huff Ltd in 1997 as Minda

was Indian company any Huff was a Germany company there were in collaboration for

almost years and then they separated to from Minda Corporation Limited.

Export to major market

Collaboration with Global Suppliers

Maintain Global Standards

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Hierarchy of Minda Group

Level 1 Unskilled Employees

Level 2 Semi Skilled Employees Assembly

Level 3 Skilled Employees

Level 4 Staff Supervisors

Level 5 Officer / Engineer

Level 6 Deputy Manager

Level 7 Manager

Level 8 DGM, Deputy General Manager

Level 9 General Manager

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Level 10 Vice President

Level 11 President / Managing Director

Major Customers Domestic

Customers Models Share of Business

Bajaj Auto Ltd.

Honda Motorcycle & Scooter India

JCB India

Kinetic Engineering Ltd.

Kinetic Motor Co. Ltd.

LML Ltd.

Suzuki Motorcycle India

TVS Motor Company Ltd.

Yamaha Motor India (P) Ltd.

Motorcycles

Scooters

3DX

Scooters & Mopeds Motorcycles

Scooters

Motorcycles Scooters

Motorcycle

Scooters & MopedsMotorcycles

Motorcycles

100%

50%

100%

100% 100%

100%

70%100%

100%

40%.

100%

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Major Customers - Exports

Customers Country Vehicle Category

Aprilia

Derby

Kawasaki

Peugeot

Piaggio

Pollak

Suzuki

Suzuki

Suzuki

Triumph Motorcycles Ltd.

Yamaha-MBK

Yamaha

Yamaha

Italy

Spain

Japan

France

Italy

U.S.

Spain

Thailand, Indonesia

Philippines

United Kingdom

France

Spain

Indonesia, Malaysia

Scooter

Scooter

Motorcycle

Scooter

2 & 4 Wheeler

Off Road Vehicle

Scooter

Scooter / Motorcycle

Scooter / Motorcycle

Motorcycle

Motorcycle

Motorcycle

Scooter / Motorcycle

PRODUCT PROFILE

Security Systems

Noida & Pune based Minda Corporation Ltd and Minda Valeo Security Systems Pvt. Ltd. manages the manufacturing and products include mechanical and electronic security systems like door handles, fuel tank locks and remote operated immobilizers and alarms amongst others.

Driver Information System

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Manufactured at Pune by Minda Stoneridge Instruments Ltd, the products include:

Instrument Clusters, Speedometers, Odometers, Fuel gauge, Temperature gauge,

Sensors, Tank Units and Indicators

Connective Systems

With the merger of Minda Wire links (P) Ltd. and Minda SAI Ltd we now produce all

types of Wiring Harnesses, Wiring Sets and Components

Die Casting

Pressured Die Casted Components: Zinc & Aluminum

Mechanical Product Range

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Electronics Product Range

Mechanical Product Range Key Systems

Locksets / Key Sets

Fuel Tank Cap

Window Regulator

Steering  Column  Locks

Polymer

Electronics Product Range Remote Control Systems ( Radio Frequency/Infra Red)

Immobilizer

MISSION OF THE COMPANYTo design and manufacture vehicle security and access system to world class

standards with state of the art technology and to market them to the right place

and at the right quality to the customer’s satisfaction.

To maximum value to the shareholders and provide value enhancement to the

customers, employees and the company served.

VISION OF THE COMPANY

To be the world class company, known for very high customer base.

To be internationally renowned organization, much sought after by both

customers and suppliers.

To be a company, known for nurturing and developing human resources for

organizational excellence

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New Improvement Initiatives in Ashok Minda Group

MINDA CLUSTER The Improvement Journey started in Ashok Minda Group from January 2001. The

journey began with Minda Huf Ltd, Noida joining ACT-CII Cluster in Jan 2001.

These cluster activities continued till December 2003. The learning in the cluster

covered most of the practices of Lean Manufacturing or Toyota Production Systems

(TPS). This learning laid foundation for launching a group level improvement

initiative programmes.

Taking the inputs from the learning of ACT-CII project, the Minda Cluster was stared in

June 2003 to propagate the Lean Manufacturing Practices across the companies in the group.

The first cycle of Minda Cluster followed a common Roadmap for a period of 2 years. The

Cluster focused more on the review of results achieved by each company and less on the

process adopted in achieving the results

At the end of 1st cycle of Minda Cluster, the MRM organization as well as contents was

reviewed and following changes were made.

Two Clusters have been created based on geographical location of companies / units – one in

North and another in West / South.  

The MRM will be held once in 45 days and every 3rd MRM will be a CRM.

The review would focus on process and changes made in the process leading to

results.

Accordingly the MRM contents were revised and categorized into 4 Sections : DWM

Control, Value / Flow Improvement , People Related & Product / Process

Technology.

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So far, 10 Regional MRMs and 4 CRMs have been held. The Road Map of Minda Cluster 2

is given below:

Quality Circles Convention

The quality circle movement was initiated in the group companies in April 2004. . After

about a year of practice the first quality circles convention was organized in March 2005 with

a view to foster this activity through internal competition. It was also decided to have the

convention as a regular activity and   include in the annual calendar of TQM Cell. The last

convention – 3rd Quality Circles Convention was held on 18th & 19th March 2007 at Minda

Stoneridge Instruments Ltd, Pune.

The winners of the 3rd convention are given below:

Winner : JOSH Quality Circle from MSL-Noida

First Runner up :   LAKSHAY Quality Circle from MHL-Noida

Second Runner up : ANKUSH Quality Circle from MSIL- Pune

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Minda Technical Conference – MTC

During this TQM journey a need was felt for a platform where the Technical Teams of AKM

Group for knowing each other and sharing their experiences and concerns. Hence, it was

decided to organize a group technical conference which has been named as Minda Technical

Conference – MTC. The first conference of MTC was held in December 2005 at MHL,

Noida. The conference covered individual presentations from group companies and

presentations on selected topics of business interest by four empowered teams. In the

subsequent review of MTC, it was decided to conduct focused conferences on selected

technical areas as prioritized by group companies. The technical areas selected are Tooling,

Manufacturing Engineering (ME), Maintenance and Supply Chain.

Training

the training needs related to TQM of group companies are mostly provided by internal

faculties or by our external counselors like Dr Sumit Roy and Mr. Ram Mohan. Unit /

Company specific trainings are provided during counseling of units and needs common to

group companies are provided centrally in a selected location.

Problem Solvers: In order to promote problem solving skills in group companies, a

training program “Development of Problem Solvers “was organized at MHL, Noida.  The

training was conducted by Dr Sumit Roy. On a long term basis they would be developing

problem solvers at the following 3 levels:

Level 1 – Conceptual understanding of problem solving techniques and isolated applications.

Level 2 – Regularly apply the techniques in own areas and achieve sustainable results.

Level 3 – Regularly apply the techniques in all relevant areas of the organization and

achieve good, sustainable results.

At the end of the training, the trainees have selected problems of priority based on business

needs under the guidance of their HOD and Unit Heads. They would solve the problems thus

selected by them and submit the same as project reports. Monthly review of these projects by

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Dr Sumit Roy is conducted to support the problem solvers and monitor the progress of the

projects.

Based on successful completion of project and passing of written examination (minimum of

60% marks), the trainees are certified as Problem Solvers. In the first batch, 11 candidates

got certified as Problem Solvers, Level -1

The training for second batch of problem solvers was conducted. The batch consisted of 20

participants from group companies.

Value Engineering

The training on Value Engineering (VE) was conducted on 8th & 9th May 07 at MCL,Noida.

In all, 26 engineers from group companies participated in the 2 day workshop conducted by

Dr Sumit Roy. The team from each company has selected a project on the basis of their

Unit’s priority. The teams are expected to complete their project work within 90 days and

submit to Corp. TQM. The completed projects will be posted on TQM Website for reference.

DISHA

Minda have been driving operational excellence through Minda Cluster and TQM activity. A

review of the results achieved by these processes revealed that we need to focus on

improvement of backend managerial processes as well. Thus, a new initiative named DISHA

started in June 2005. Key activities under DISHA are:

Role clarity at Corporate, Business and Unit level

Institutionalize Process

Developing a mechanism for - Driving Priority

Changing style of Management- Leadership Role, Value System, Delegation &

Empowerment

Long term & Short term Strategic & Business Planning

Review, Assessment & Monitoring Initiatives at

o Group Corporate Level

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o Business Unit Level

o Unit Level

Figure given below indicating the overall approach to excellence;   

The Improvement Journey started in Ashok Minda Group from January 2001. The journey

began with Minda Huf Ltd, Noida joining ACT-CII Cluster in Jan 2001. These cluster

activities continued till December 2003. The learning in the cluster covered most of the

practices of Lean Manufacturing or Toyota Production Systems (TPS).

This learning laid foundation for launching a group level improvement initiative

programmes.

Taking the inputs from the learning of ACT-CII project, the Minda Cluster was stared in June

2003 to propagate the Lean Manufacturing Practices across the companies in the group. The

first cycle of Minda Cluster followed a common Roadmap for a period of 2 years. The

Cluster focused more on the review of results achieved by each company and less on the

process adopted in achieving the results.

29

Award and Recognition

HUMAN RESOURCE MAPPING AT MINDA

The Structure

Keeping in pace with the recent changes, Minda Group has re-designed their Organizational

structure and has successfully introduced Lean Management system by adopting the

FUNCTIONAL STRUCTURE. While doing so, we have identified the Major FUNCTIONS

and related SUB-FUNCTIONS and assigned three tier Functional designations accordingly

to each Staff member viz, Head of Department, Group Leader and Members.

Manpower Planning

Based on the future business growth needs, we do the Manpower Planning and Profit center

budgeting every year. We follow a well laid down sequential and scientific method for

inducting prospective candidates. A set of Ideal Expectations expected from the Person

performing the specific function has been clearly documented in the form of Responsibility

and Authorities Manual.

People

Minda consider people as one of the most important resource and the same is reflected in

our Internalized Vision Statement “To be a company known for Nurturing and Developing

Human Resources for Organizational Excellence ".

30

We are a strong and professional team of more than 700 members dedicated towards

manufacturing world class products and high customer satisfaction rating.

Employee Communication

Open House gathering as a Feedback mechanism.

First Day Celebration

Birthday Display Board

Display Boards

Internal Newsletter

Given below flow- chart show the process of man power planning;

Continuous Improvement Tools

31

Minda have successfully adopted following continuous improvement tools:

Kaizen Movement

Work Place Management Through 5S

TPM

POKA YOKE

SMED

Kaizen is...

... a system of continuous improvement in quality, technology, processes, company

culture, productivity, safety and leadership.

We'll look at Kaizen by answering three questions: What is Kaizen? What are the benefits of

Kaizen? What do you need to do to get started using Kaizen principles?

What is Kaizen?

Kaizen was created in Japan following World War II. The word Kaizen means "continuous

improvement". It comes from the Japanese words 改 ("kai") which means "change" or "to

correct" and 善 ("zen") which means "good"

Kaizen is a system that involves every employee - from upper management to the cleaning

crew. Everyone is encouraged to come up with small improvement suggestions on a regular

basis. This is not a once a month or once a year activity. It is continuous. Japanese

companies, such as Toyota and Canon, a total of 60 to 70 suggestions per employee per year

are written down, shared and implemented.

In most cases these are not ideas for major changes. Kaizen is based on making little changes

on a regular basis: always improving productivity, safety and effectiveness while reducing

waste.

Suggestions are not limited to a specific area such as production or marketing. Kaizen is

based on making changes anywhere that improvements can be made. Western philosophy

may be summarized as, "if it ain't broke, don't fix it." The Kaizen philosophy is to "do it

32

better, make it better, and improve it even if it isn't broken, because if we don't, we can't

compete with those who do."

Kaizen in Japan is a system of improvement that includes both home and business life.

Kaizen even includes social activities. It is a concept that is applied in every aspect of a

person's life.

In business Kaizen encompasses many of the components of Japanese businesses that have

been seen as a part of their success. Quality circles, automation, suggestion systems, just-in-

time delivery, Kanban and 5S are all included within the Kaizen system of running a

business.

Kaizen involves setting standards and then continually improving those standards. To support

the higher standards Kaizen also involves providing the training, materials and supervision

that is needed for employees to achieve the higher standards and maintain their ability to

meet those standards on an on-going basis.

More information about Kaizen:

Benefits of Kaizen - What Kaizen can do for you. Read about how Kaizen helped Fleetwood

and Sony.

Getting Started With Kaizen - A brief overview describing how to start to use Kaizen in your

company.

5S - A 5S Program is often associated with Kaizen.

Lean Manufacturing - A case study at Mathers Controls.

What is Five S?

5S is a basic, fundamental, systematic approach for productivity, quality and safety

improvement in all type of business.

33

A Five S program is usually a part of, and the key component of establishing a Visual

Workplace. And is both a part of Kaizen -- a system of continual improvement -- which is a

component of lean manufacturing.

The Five S program focuses on having visual order, organization, cleanliness and

standardization. The results you can expect from a Five S program are: improved

profitability, efficiency, service and safety. The principles underlying a Five S program at

first appear to be simple, obvious common sense. And they are. But until the advent of Five S

programs many businesses ignored these basic principles.

What types of businesses benefit from a Five S program?

Everyone and all types of business benefit from having a Five S program. Manufacturing and

industrial plants come to mind first, as those are the business that can realize the greatest

benefits. However, any type of business, from a retail store to a power plant -- from hospitals

to television stations -- all types of businesses, and all areas within a business, will realize

benefits from implementing a Five S program.

What are the Five S's?

Use the following links to learn more about 5S

Sort - the first step in making things cleaned up and organized

Set In Order - organize, identify and arrange everything in a work area

Shine - regular cleaning and maintenance

Standardize - make it easy to maintain - simplify and standardize

Sustain -maintaining what has been accomplished

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TOTAL PRODUCTIVE MAINTENANCE (TPM)

Total Productive Maintenance (TPM) is a maintenance program which involves a newly

defined concept for maintaining plants and equipment. The goal of the TPM program is to

markedly increase production while, at the same time, increasing employee morale and job

satisfaction. The TPM program closely resembles the popular Total Quality Management

(TQM) program. Many of the same tools such as employee empowerment, benchmarking,

documentation, etc. are used to implement and optimize TPM. This paper will define TPM in

some detail, evaluate its strengths and weaknesses as a maintenance philosophy, and discuss

implementation procedures. Examples of successfully implemented programs will be

presented.

Total Productive Maintenance (TPM) is a maintenance program concept. Philosophically,

TPM resembles Total Quality Management (TQM) in several aspects, such as (1)total

commitment to the program by upper level management is required, (2) employees must be

empowered to initiate corrective action, and (3) a long range outlook must be accepted as

TPM may take a year or more to implement and is an on-going process. Changes in

employee mind-set toward their job responsibilities must take place as well.

TPM brings maintenance into focus as a necessary and vitally important part of the

business. It is no longer regarded as a non-profit activity. Down time for maintenance is

scheduled as a part of the manufacturing day and, in some cases, as an integral part of the

manufacturing process. It is no longer simply squeezed in whenever there is a break in

material flow. The goal is to hold emergency and unscheduled maintenance to a minimum.

Implementation of TPM

To begin applying TPM concepts to plant maintenance activities, the entire work force must

first be convinced that upper level management is committed to the program. The first step in

this effort is to either hire or appoint a TPM coordinator. It is the responsibility of the

coordinator to sell the TPM concepts to the work force through an educational program. To

do a thorough job of educating and convincing the work force that TPM is just not another

"program of the month," will take time, perhaps a year or more.

35

Once the coordinator is convinced that the work force is sold on the TPM program and

that they understand it and its implications, the first study and action teams are formed. These

teams are usually made up of people who directly have an impact on the problem being

addressed. Operators, maintenance personnel, shift supervisors, schedulers, and upper

management might all be included on a team. Each person becomes a "stakeholder" in the

process and is encouraged to do his or her best to contribute to the success of the team effort.

Usually, the TPM coordinator heads the teams until others become familiar with the process

and natural team leaders emerge.

The action teams are charged with the responsibility of pinpointing problem areas,

detailing a course of corrective action, and initiating the corrective process. Recognizing

problems and initiating solutions may not come easily for some team members. They will not

have had experiences in other plants where they had opportunities to see how things could be

done differently. In well run TPM programs, team members often visit cooperating plants to

observe and compare TPM methods, techniques, and to observe work in progress. This

comparative process is part of an overall measurement technique called "benchmarking" and

is one of the greatest assets of the TPM program.

The teams are encouraged to start on small problems and keep meticulous records of their

progress. Successful completion of the team's initial work is always recognized by

management. Publicity of the program and its results are one of the secrets of making the

program a success. Once the teams are familiar with the TPM process and have experienced

success with a small problem, problems of ever increasing importance and complexity are

addressed.

As an example, in one manufacturing plant, one punch press was selected as a problem

area. The machine was studied and evaluated in extreme detail by the team. Production over

an extended period of time was used to establish a record of productive time versus

nonproductive time. Some team members visited a plant several states away which had a

similar press but which was operating much more efficiently. This visit gave them ideas on

how their situation could be improved. A course of action to bring the machine into a "world

class" manufacturing condition was soon designed and work was initiated. The work

involved taking the machine out of service for cleaning, painting, adjustment, and

36

replacement of worn parts, belts, hoses, etc. As a part of this process, training in operation

and maintenance of the machine was reviewed. A daily check list of maintenance duties to be

performed by the operator was developed. A factory representative was called in to assist in

some phases of the process.

After success has been demonstrated on one machine and records began to show how

much the process had improved production, another machine was selected, then another,

until the entire production area had been brought into a "world class" condition and is

producing at a significantly higher rate.

Note that in the example above, the operator was required to take an active part in the

maintenance of the machine. This is one of the basic innovations of TPM. The attitude of "I

just operate it!" is no longer acceptable. Routine daily maintenance checks, minor

adjustments, lubrication, and minor part change out become the responsibility of the

operator. Extensive overhauls and major breakdowns are handled by plant maintenance

personnel with the operator assisting. Even if outside maintenance or factory experts have to

be called in, the equipment operator must play a significant part in the repair process.

Training for TPM coordinators is available from several sources. Most of the major

professional organizations associated with manufacturing as well as private consulting and

educational groups have information available on TPM implementation. The Society of

Manufacturing Engineers (SME) and Productivity Press are two examples. Both offer tapes,

books, and other educational material that tell the story of TPM. Productivity Press conducts

frequent seminars in most major cities around the United States. They also sponsor plant

tours for benchmarking and training purposes.

POKA-YOKE

Learn how Poka-Yoke is used to prevent defects from occurring in a manufacturing process.

Shigeo Shingo introduced the concept of poka-yoke (pronounced POH-kah YOH-kay) in

1961, when he was an industrial engineer at Toyota Motor Corp. The initial term was baka-

yoke, which means fool proofing. In 1963, a worker at Arakawa Body Co. refused to use

baka-yoke mechanisms in her work area, because of the term’s dishonorable and offensive

37

connotation. Hence, the term was changed to poka-yoke, which means error proofing or

mistake proofing.

Mistake Proofing: Apply to the process to prevent mistakes from occurring, stop the error

from further processing, and warn that the error has occurred.

Error Proofing: Apply to design to prevent assembly errors.

However, most people use the terms interchangeably.

Poka-Yoke is a process improvement designed to prevent a specific defect from

occurring. It is a process improvement system that prevents personal injury, promotes job

safety and prevents faulty products and machine damage. Poka-yokes are mechanisms used

to mistake proof an entire process. Ideally, poka-yokes ensure that proper conditions exist

before actually executing a process step, preventing defects from occurring in the first place.

Where this is not possible, poka-yokes perform a detective function, eliminating defects in

the process as early as possible.

Many people think of poka-yokes as limit switches, optical inspection systems, guide pins or

automatic shutoffs that should be implemented by the engineering department. This is a very

narrow view. These mechanisms can be electrical, mechanical, procedural, visual, human or

any other form that prevents incorrect execution of a process step. Poka-yokes also can be

implemented in areas other than production such as sales, order entry, purchasing or product

development where the cost of mistakes is much higher than on the shop floor. The reality is

that defect prevention, or defect detection and removal, has widespread applications in most

organizations.

Mistake: The execution of a prohibited action, the failure to correctly perform a required

action or the misinterpretation of information essential to the correct execution of an action.

Poka-Yoke (Mistake/Error Proofing): The use of process or design features to prevent the

manufacture of nonconforming product.

38

Error Proofing Triangle

Operational Error proofing: involves making modifications or installing devices that

reinforce the correct procedure sequence.

Philosophical Error proofing: involves identifying situations that cause defects and doing

something about it—empowerment of workforce.

Physical Error proofing: involves installing components such as fixtures or sensors to

eliminate conditions that may lead to an error.

SMED

Single Minute Exchange of Die (SMED) is one of the many lean production methods for

reducing waste in a manufacturing process. It provides a rapid and efficient way of

converting a manufacturing process from running the current product to running the next

product. This rapid changeover is key to reducing production lot sizes and thereby improving

flow( Mura ( Japanese term)) The phrase “single minute” does not mean that all changeovers

and startups should take only one minute, but that they should take less than 10 minutes ( in

other words, “single digit minute”). Closely associated is a yet more difficult concept, One-

Touch Exchange of Die, (OTED), which says changeover can and should take less than 100

seconds.

39

CHAPTER THREE

INTRODUCTION TO THE PROBLEM

HIGHLIGHTS:

Meaning of recruitment and selection

40

Methods of recruitment and selection

Statement of the problem

Objective of the study

Scope of the study

CHAPTER THREE

Meaning of Recruitment

Recruitment is the process of locating and encouraging potential applicants to apply for

existing job openings. It is actually a linking function joining together those which jobs to fill

and those seeking job. The vacancy is initiated to the HR department by the concerned

technical department. Ensure that judgment of abilities, experience and qualifications is made

against the requirements of the position in question. Vacancy is known in two situations

(generally):

An employee leaves and there is vacancy created

Business Growth

Defining the Recruitment- Decide what vacancy you have. If you need to fill a new role

quickly you might find it helpful to adapt one of the models provides here:

41

Task analysis- Draw up a detailed list of tasks that the person will have to do.

This helps in determining the qualities and qualifications genuinely required for

the job.

Job Description- Produce an outline of the broad responsibilities (rather than

detailed tasks) involved in the job.

Person Specification- Decide what skills, experience, qualifications and attributes

someone will need to do the job as defined in the task analysis and job

description.

Methods of recruitment:

1. Internal method of recruitment: Promotion and Transfer, Job Posting, Employee Referral. 2. External method of recruitment: Campus recruitment, Advertisement, Consultancy, Employment exchange, Walk- Ins.

Alternatives of recruitment process Overtime

Hiring temporary employees

Outsourcing

Meaning of Selection

Selection is the process of placing the Right person in right place at right time. Choose the

person who best fits your person specification. This is the next step after recruitment. There

are various selection test which can be used in selection process-Intelligence Test, Aptitude

Test, Achievement Test, Interest Test, Personality Test, Situational Test, Polygraph Test,

Graphology Test.

Screening of application:

Short listing: Review applications on the basis of the person specification.

42

Ensure that you select for interview those who match the specifications,

regardless of age sex, race etc and that the specifications are not themselves

discriminatory.

Interviews: Interview your short listed candidates remembering that your job is

not only to assess the best candidate for the job, but also to create a great

impression of your organization.

1. Candidate assessments- The interview will provide you with some information but

check it out before offering a job.

Ask the candidate to show you the examples of previous work, do a

presentation, case study, some tests or full assessment. Test can be done

before the interview. It depends on the number of candidates being

interviewed and the type of the job.

You must have the specific permission of the applicant to do so, particularly if

you wish to contact employer. If you need them quickly, try phoning.

2. Making a job offer- If you think you have found the right candidate, it’s time to make

the job offer.

3. Induction- Help your new recruit to settle in quickly and become productive as soon

as possible.

The Recruitment Process:

The recruitment process begins when you need someone new in the Department, either

because an existing staff member has left, or because there is new work to be done. It

doesn’t finish until after the appointment has been made. The main stages of the

recruitment and selection process are identified in the below Flow Chart:

43

Identify VacancyIdentify Vacancy

Prepare job description and person specificationPrepare job description and person specification

Advertise/intimate to consultant to float biodatasAdvertise/intimate to consultant to float biodatas

Managing the response for consultantManaging the response for consultant

Pre-Interview

Preparation of recruitment/ selection document for the position

Advertisement

Preparing advertisement

Media selection

Positioning

Response Handling

Initial interview online or telephone

Short Listing for interviews

Interview arrangement

Sending emails or calling short listed candidates

Interview details to the short listed candidates

During Interview

HR Interview

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Arrange interviewsArrange interviews

Conduct the interviewConduct the interview

Short ListingShort Listing

Reference CheckReference Check

Convey the DecisionConvey the Decision

Appointment Action/ Issue of letter intent indentininindentindentofintentAppointment Action/ Issue of letter intent indentininindentindentofintent

Technical interview

Conducting tests [aptitude / analytical etc.]

Reference check (if required)

Medical examination

Post Interview

Email or telephone call to successful candidates

HRM prepares a letter of appointment

Placement

Induction

Recruitment Cycle Time:

To bring in more effectiveness in the recruitment process, HR would follow a specific project

deadline of 38 days (from the day it had received the approved manpower requisition) to hire

a new employee.

The process specific schedule break-up is mentioned below:

Activities Time Frame

I

II

Role identification, Job description, CV sourcing & Initial

HR Short listing

Organizing the written Tests

Organizing the First Technical interviews

Organizing the Final Interview

Sessions to Take the Final Decisions

7 days

5 days

5 days4 days

3 days

III Preparing the Salary Proposal, Negotiate with the selected

candidates & offer closure6 days

45

In Minda Corporation Limited, Interviews are conducted by: Unit head

Department head

HR Head

Managing Director (for Senior positions)

46

STATEMENT OF THE PROBLEM

During my study I wished to know that whether there is an equal opportunity of placement

for experienced and non experienced candidates or not.

Preliminary findings: One thing that I observed about the company is that there is no

time management. I had also spent two days for getting training letter from the company.

Purpose of the study: The main purpose behind the study is to bridge the gap between

theoretical knowledge and practical aspect. Basically it is part and parcel of educational

curriculum.

OBJECTIVE OF THE STUDY

Every task is undertaken with an objective. Without any objective a task is rendered

meaningless. The main objectives for undertaking this project are:

To understand the internal Recruitment process of Minda Corporation Limited.

To know how the organization recruits people and make selection between different

employees with requisite skills, knowledge and experience in order to achieve goals

and perform the activities of the organization.

To know how recruitment logically aims at attracting a large number of qualified

applicants who are ready to take up the job if it is offered and also offering enough

information for unqualified persons to get selected.

To know how to pick individuals and make selection between them who have

relevant qualification to fill the jobs of organization.

To know how to choose the individuals who can most successfully perform the job,

from the pool of qualified candidates.

To identify areas where there can be scope for improvement and give suitable

recommendation to streamline the hiring process.

47

SCOPE OF THE STUDY

Different companies use different types of procedures for hiring employee so this study

conveys the information to the interested person about the recruitment and selection

procedure of Minda Corporation Limited.

This report could also create group of hypothesis that tends to further research on the

same or allied propositions.

The study can be applied to any other automotive industry.

The study can also be applicable in any other industry with some changes in

questionnaire and methodology.

48

CHAPTER FOUR

RESEARCH METHODOLOGY

HIGHLIGHTS:

Research design

Problem study plan

Data collection

Analytical model

49

CHAPTER FOUR

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in procedure.

In fact, the research design is the conceptual structure within which research is conducted; it

constitutes the blueprint for the collection, measurement and analysis of data.

Research is the systematic objective process of gathering, recording, and analyzing data

to aid in making business decisions. The research process steps are given below:

1. Systematical consisting of enunciating the problem

2. Formulating a hypothesis

3. Collecting the facts or data

4. Analyzing the facts

5. Reaching certain conclusions either in the form of solutions toward the concerned

problem or in certain generalization for some theoretical formulations.

Problem study plan

1. Preparation of questionnaire

2. Random distribution of questionnaire and feedback collection from the employee.

3. Personal interaction

4. Compilations of feedback

5. Correlation of feedback with information obtained through personal interaction

6. Analysis of the feedback

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ACTION DETAILS

1. I firstly prepared a questionnaire for taking the employee’s feedback so that I could

interpret the actual problem.

2. After the preparation of questionnaire, I distributed them so as to collect the views of

employees regarding their selection process. The total employee strength in MCL is

more than 700. To get a fair statistical feedback, I distributed questionnaire to skilled

workers, supervisors and engineers. I haven’t considered unskilled and semi skilled

workers i.e. are more than 90% of total employee strength of MCL.

No. of unskilled and semi skilled worker = 90% of 700 = 700 X 90/100 = 630

No. of skilled workers, supervisors, engineers, managers, president = 700 – 630 = 70

After detecting the no. of managers and president, I take my sample size 50.

3. I interacted with employees to take feedback from them & also to crosscheck their

feedback.

4. Collected the questionnaires to compile the feedback for the analysis. The total data

of the feedback forms was compiled, categorized and analyzed.

5. The correlation between the feedback obtained through the questionnaire and the

direct feedback obtained through personal interaction was quite high.

6. Lastly interpreted the questionnaires and found out the analysis to improve the

selection process of candidates in Minda Corporation Limited.

DATA COLLECTION

Primary data

Data observed and recorded or collected directly from respondents, raw data is a term for

unprocessed data; it is also known as primary data. Raw data can be input to a computer

program or used in manual analysis procedures. Such as gathering statistics from a survey.

Information collected directly from the source through observation, conversation, and/or

participation. The degree of reliability, validity, and precision required depends on how

you intend to use the information.

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Collection of Primary data:

In person interview

Telephone communication

Survey: To collect data through the mail, telephone, online, or through personal

interview. Survey is done trough,

Mail Survey

Telephone Survey

Online Survey

Personal Interview Survey

Sampling: is the process of selecting a small number of elements from a larger

defined target group of elements such that the information gathered from the small

group will allow judgments to be made about the larger groups

Internet

Observation : Researcher records the subjects’ overt behavior and takes notes on

the conditions and events

Experimentation

Experimentation: Researcher attempts to control certain variables while measuring

the effect of experimental variables.

Secondary data

Data complied both inside and outside the organization for some

purpose other than the current investigation. Data collected by someone other than the

user. Common sources of secondary data for social science include censuses, surveys, and

52

organizational records. It is the Pre-existing data not gathered for purposes of the current

research

Not ‘new’ data – ‘second hand’

Secondary data

‘Back up’ data – secondary in use

Types of Secondary Data:

Internal Data

Data that originate within the organization for which the research is being done.

External Data

Data that originate outside the organization for which the research is being done.

53

Searching for Secondary Data:

ANALYTICAL MODEL:

Research designDescriptive Research

Sample designConvenience Sampling

Sample size50

54

Area of operation (NCR/Delhi) Noida

Methods of Data collectionQuestionnaires

Tools of Data analysisChi-square Test

Descriptive Research

In descriptive as well as in diagnostics studies, the researcher must be able to define

clearly, what he wants to measure and must find adequate methods for measuring it

along with a clear cut definition of ‘population’ he wants to study. Since the aim is to

obtain complete and accurate information in the said studies, the procedure to be used

must be carefully planned.

Thus we can say, in descriptive data analysis, you want to ask questions such as

“What’s the distribution of my data?” or, “How did my respondents answer each

question?”

The goals of descriptive data analysis are to:

Summarize your data

Get an accurate description of the variables of interest

Convenience sampling:

Convenience sampling use when you are unable to access a wider population, for

example due to time or cost constraints. Convenience sampling is a type of non

probability sampling which involves the sample being drawn from that part of the

55

population which is close to hand. That is, a sample population selected because it is

readily available and convenient.

For example, if the interviewer was to conduct such a survey at a shopping center

early in the morning on a given day, the people that he/she could interview would be

limited to those given there at that given time, which would not represent the views of

other members of society in such an area, if the survey was to be conducted at different

times of day and several times per week. This type of sampling is most useful for pilot

testing.

Sample Size: I take my sample size is 50. In Minda Corporation Limited, there is

more than 700 employees but more than 90% employees are unskilled and semi

skilled. So I consider in my study only the left 10% employees that are skilled

employees, staff supervisors, engineers and officers.

Hypothesis: Ordinarily, when one talks about hypothesis, one simply means a mere

assumptions or some supposition to be proved or disproved. Quite often a research

hypothesis is a predictive statement, capable of being tested by scientific methods, that

relates an independent variable to some dependent variable.

Steps for hypothesis testing:

1. State Ho as well as Ha

2. Specify the level of significance

3. Decide the correct sampling distribution

4. Sample a random sample(s) and workout an appropriate value from the sample

data.

5. Calculate the probability that sample result would diverge as widely as it has

from expectations, if Ho were true.

6. Is the probability equal to or smaller than the value at level of significance?

7. If yes then reject Ho or not then accept Ho

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CHAPTER FIVE

57

DATA INTERPRETATION AND ANALYSIS

HIGHLIGHTS:

Definition of Data Interpretation

Data tabulation

Hypothesis testing

SWOT analysis

CHAPTER FIVE

DATA INTERPRETATION

Interpretation refers to the task of drawing inferences from the collected facts after an

analysis and experimental study. In fact, it is a search for broader meaning of research

findings. The task of interpretation has two major aspects viz.,

58

1. The effort to establish continuity in research through liking the results of a given

study with those of another.

2. The establishment of some explanatory concepts.

PRIOR EXPERIENCE OF SURVEYED

RESPONDENTS

Prior Working

78%

22%

YES

NO

Analysis

From the above chart we find that 78% employees of Minda Corporation Limited

have prior experience and 22% employee have no prior experience in Minda

Corporation Limited.

DIFFERENT TYPE OF RECRUITMENT SOURCES USED IN MINDA CORPORATION LIMITED

59

Recruitment Sources

4% 4%

19%

29%

44%

Advertisement Employee Referral Consultant

Portals All of these

Analysis

From above chart we find that Minda Corporation Limited use four type of sources for hiring their employees. According to 44% employee they use consultant, according to 29% employee they use employee referral, according to19% employee they use advertisement, according to 4% employee they use portals and 4% employee said they use all of these resources.

POSITION OF INTERNAL JOINT POSTING SYSTEM i.e. INTERDEPARTMENT TRANSFERS AND PROMOTIONS

60

Internal Joint Posting System

78%

22%

Yes

No

Analysis

From above graph we clearly stated that according to 22% employee of Minda

Corporation Limited there is no internal joint posting system and according to 78%

Employee, Company do inter department transfers & promotions.

QUALITIES PREFERENCES OF CANDIDATE

SELECTION

10%12%

30%

40%

8%

Qualification Experience Skills

Personality Depend on Job

61

Analysis

From above pie chart, we find that in the selection process of Candidate Company should prefer employee’s qualification on the basis of 12% employee, employee’s experience on the basis of 30% employee, employee’s skills on the basis of 40% employee, employee’s personality on the basis of 8% employee. And according to the 10% employee qualities preferences depend on the job.

THE STAGES OF THE SELECTION PROCESS OF AN EMPLOYEE FOLLOWED BY MINDA CORPORATION LIMITED

Selection Process: Screening of application, Selection test, Interview, Reference check, Medical examination, etc

Selection Process

100%

0%

Yes

No

Analysis

From above chart we find that according to the all respondents Minda Corporation Limited followed all the stages of selection process.

BONDING PROCESS IN MINDA CORPORATION LIMITED

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Enter into Bonds

0%

100%

Yes

No

Analysis

From the above pie chart we find that according to the all respondents, Minda Corporation Limited never asked their employees to enter into BONDS.

THE PROCESS OF PROVIDING PROPER FEEDBACK THROUGH HUMAN RESOURCE DEPARTMENT TO THE INTERVIEWING CANDIDATES UPON THEIR SELECTION OR REJECTION

Proper Feedback

14%

86%

Yes

NO

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Analysis

From the above pie chart we find that according to the 14% employees of Minda Corporation Limited, human resource department provide proper feedback to the candidates upon their selection or rejection and according to the 86% employees there is not any process of providing proper feedback to the candidates upon their selection or rejection.

TIMING OF GETTING OFFER LETTER AFTER JOINING OF EMPLOYEE

19

15

10

5

0

5

10

15

20

Same Day

Within Week

Within Month

After Training

Analysis

From above Bar chart we find that according to the 19 respondents out of 49 they get offer letter same day of joining, according to the 15 respondents out of 49 they get offer letter within one week of joining, according to the 10 respondents out of 49 they get offer letter within one month of joining and according to the 5 respondents out of 49 they get offer letter after the training.

AGE GROUP OF SURVEYED RESPONDENTS

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Age groups

28%

34%

8% 6%

24%

20-24

24-28

28-32

32-36

36-40

Analysis

From above pie chart we find that 28% respondents fall between the age group of 20 to 24, 34% respondents fall between the age group of 24 to 28, 24% respondents fall between the age group of 28 to 32, 8% respondents fall between the age group of 32 to 36 and 6% respondents fall between the age group of 36 to 40.

GENDER OF SURVEYED RESPONDENTS

Gender

78%

22%

Male

Female

Analysis

From the above pie chart we find that there is total 78% male respondents and 22% female respondents.

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HYPOTHESIS – TESTING

Chi-Square test: Chi square is an important non-parametric test and as such no rigid assumptions are necessary in respect to the type of population. A chi-square can be used (a) as a test of goodness of fit and (b) as a test of independence.

As a test of goodness of fit, this test enables us to see how well the assumed theoretical distribution fits to be observed data.

As a test of independence, this test enables us to explain whether or not two attributes are associated. This test helps us in deciding this issue. In such situation, we proceed with the null hypothesis that two attributes. On this basis we first calculate the expected frequencies and then work out the value of chi-square. If the calculated value of chi-square is greater than the table value at certain level of significance for given degree of freedom, we conclude that null hypothesis does not hold good which means two attributes are associated and visa- versa.

Ho: Let us take the hypothesis that there is no difference between the opportunities of selection for experienced candidate and non experienced candidate i.e. selection process and candidate’s experience is independent.

Expectation of (AB) = (A) X (B)/N

Where, (A) represents experience and (B) represents selection process.

(A)/(B) Internal joint posting system (B)

employees who prefer experience as essential quality (b)

Total

Experienced candidate: (A)

30 15 45

Non experienced candidate ( a)

9 0 9

Total 39 15 N= 54

Now using the expectation of (AB), we can write the table of expected values as follows:

Internal joint posting system (B)

employees who prefer experience as essential quality (b)

Total

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Experienced candidate: (A)

(AB)= 32.5 ( Ab) =12.5 45

Non experienced candidate ( a)

(Ba)=6.5 (ab) = 2.5 9

Total 39 15 54

Calculation of Chi-Square:

Group Observed frequency Oij

Expected frequency Eij

(Oij-Eij) (Oij-Eij)2 (Oij-Eij)2/Eij

AB 30 32.5 -2.5 6.25 0.19

Ab 15 12.5 +2.5 6.25 0.5

Ba 9 6.5 +2.5 6.25 0.96

ab 0 2.5 -2.5 6.25 2.5

Chi-Square = ∑ (Oij-Eij)2/ Eij = 4.15

Degree of freedom in this case= (r-1)(c-1) = (2-1)(2-1) = 1

The table value of Chi-Square for 1 degree of freedom at 5% level of significance is 3.841. The calculated value of Chi-Square is higher than this table value and hence the result of the experiment does not support the hypothesis. Thus candidate’s experience and selection process are not independent.

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SWOT ANALYSIS

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in a project or in a business venture. It is a systematic

identification of these factors and the strategy that reflects the best match between them. It is

based on the logic that an effective strategy maximizes a business’s strength and opportunity

but at the same time minimize its weakness and threats.

The overall evaluation of a company’s strengths, weakness, opportunities, and threats is

called SWOT analysis. It provides the information to identify key opportunities and threats in

the firm’s environment. They can be defined as follows:

STRENGTHS

Strength is a resource and advantage relative to competitors and the need of markets a firm

server or anticipates serving. Strength is distinctive competences that give the firm

competitive advantages in the marketplace.

WEAKNESS

It is a limitation in resources and capabilities that is a barrier which affect the performance.

Management skills and marketing skill etc are example of it.

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OPPORTUNITY

An environmental opportunity is an area of buyers need and interest in which there is a high

probability that a company can profitably satisfy the need.

THREATS

An environmental threat is a challenge imposed by an unfavorable trend or development that

would lead, in the absence of defensive action, to lower sales profit.

SWOT ANALYSIS on the basis of my study

I have tried to focus on SWOT analysis of Minda Corporation Limited that about the strengths, weaknesses, opportunities and threats. Here are the findings:

Strengths

A good reputation of the company. Good services.

Working culture is very friendly and healthy.

Good compensation system.

More growth opportunities for employees.

Communication system is good between the management and employees.

All the employees are treated as same and given equal preferences.

Good training programmes

Good transportation facilities to the employee.

No bonding system.

.Weakness

Take too much time for interview process so time management is not good. Recruitment process is affected by socio, political and economic factors.

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Not considering the whole talent, only considering experienced one.

Opportunities

A better information system can be developed to give the necessary information to the customer.

Mergers and acquisitions

Vast expansion and growth

Threats

Growing competition.

If the competitor hirer best talent that company going to neglect.

CHAPTER SIX

LIMITATIONS OF THE STUDY

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CHAPTER SIX

LIMITATIONS

STATISTICAL

• The sample size is small because there is more than 90% employee are unskilled and

semi-skilled.

• Time allotted for this project work could be increased for more intensive research.

• As questionnaire method was used, only those responses, which were able to read

English, were taken into account.

ATTITUDINAL71

• The responses were taken in the period of when inflation in India just increasing day

by day, so it may difficult the mind set of respondents towards recruitment and

selection process.

• The respondents showed lukewarm response to some of the questions as they were

confidential in nature.

• Working hours of trainees were allotted two days in a week.

• Lack of research experience.

CHAPTER SEVEN

RECOMMENDATIONS TO THE COMPANY

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CHAPTER SEVEN

RECOMDATIONS

Do not let employees to do over work. Because of work load productivity of employees decreases.

There should be good coordination between the members of different departments.

Time to time increment necessary according to employee’s performance.

Provide career growth opportunities to the employees.

Consider welfare of employees as necessary activity.

Provide feedback to the candidates who are unable to achieve success in selection process.

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Human touch therapy: Organization should provide their employees psychological support and positive environment. So that they can build a perfect team and be emotionally attach with organization.

Time management should be proper i.e. keep exact time for interview.

Written test also include in selection process of candidate.

Give complete information about company’s profile in recruitment advertisement.

Recruitment and selection process should be transparent.

There should be not any type language barrier in recruitment and selection process.

Recruitment and selection process should be free from political, socio and economic factors.

Few students from some of the reputed institute should be recruited directly from campus interview.

CHAPTER EIGHT

CONCLUSIONS74

CHAPTER EIGHT

CONCLUSION

From the above hypothesis testing we can conclude that recruitment and selection process in Minda Corporation Limited depend on the employee’s experience. They select experienced candidate. Because of this reason selection criteria become limited and company becomes unable to hire most suitable talent for the job.

The main reason of neglecting fresher is, employers think that if company hire fresher and non experienced candidates then in starting company have to invest something on them and may be possible after getting experience, employee leave the company for better growth opportunities. In this case company unable to get more output from them. So company prefers experienced candidates. So that company gets more output in place of less input.

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And we can also conclude that the recruitment and selection process affected by socio cultural and political factors because in company the ratio of women employee is so less in comparison to male employee.

CHAPTER NINE

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APPENDIX

HIGHLIGHTS:

Employee’s expectations from HR department

Details of samples

Bibliography

Copy of questionnaire

EMPLOYEE’S EXPECTATIONS FROM HUMAN RESOURCE DEPARTMENT

The following expectations of employees of Minda Corporation Lmt. from their hr department are given below:

Arrange more training for motivation. Selection process should be quite easy

Change salary structure

Prefer Hindi language for interview

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Cultural activities should be more

No salary negotiation

Timely appraisal

Time management should be proper

One day interview and final the candidate in one day

Questions asked during interview should be as per specific knowledge

Transportation and food facility should be free

Sunday always should be holiday

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DETAILS OF SAMPLES

See annexure 1

BIBLIOGRAPHY

Books

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Kothari, C.R., Research Methodology methods & Techniques, New Age

International publishers, New Delhi, 2008, ed.2nd.

Levin, R.I. & Rubin D.S., Statistics for Management, Pearson Education Prentice

Hall of India, 2008, ed. 7th

Rao, V.S.P., Human Resource Development.

Aswathappa, k., Human Resource Management, Tata McGraw-Hill Publishing

Company Limited, New Delhi, 2008, ed.5th.

Dessler, Gary., Human Resource Management, Pearson Education Prentice Hall of

India, 2008, ed. 10th

Magazines

March, 2009, MINDA Times.

Manuals of Minda Corporation Ltd. (composed by corporate office)

August, 2009, Human Factor.

Websites

www.minda.co.in

www.hr.guide.com

Newspaper: 11 October, 2009, Business Standard, Page no.16, Article- Resume frauds

rose abruptly in March.

QUESTIONNAIRE

Dear respondent,

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This research is to study and analyze the Recruitment and Selection Process and it is incomplete without your valuable contribution. All the data collected from you will be used for the sole purpose of research only.

Q1. Do you have any prior working experience? If yes, please mention the total months.

a) Yes                         b) No   Total Months…………….

Q2. What Recruitment Sources are used in this company?

a)Advertisement        b) Employee Referral      c) Consultant     d) Portals    e) All of these

Q3. Does this company adapt Internal Joint Posting System (Inter department transfers & promotions)?

a) Yes                        b) No

Q4. Rank the qualities in the order of your preference on the basis of candidate selection?

a) Qualification          b) Experience       c) Skills         d) Personality   e) Depends on Job

Q5. Does all the stages of the selection process of an employee been followed by your organization?

(Selection Process: Screening of application, Selection test, Interview, Reference check, Medical examination, etc.)

a) Yes                        b) No

Q6. Does this company ask candidates to enter into BONDS with them?

a) Yes                         b) No

   If Yes then in what kind of Job or Department………………………….

Q7. Does the HR provide proper feedback to the interviewing candidates upon their selection or rejection?

   a) Yes                           b) No

Q8. Within how many days you are been given your offer letter once you join?

a) Same day     b) Within one week    c) Within one month      d) After the training

Q9. What are your three likings for Minda Corporation Lmt.?

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a)b)c)

Q10. What are your three expectations from human resource department in MCL?

a)b)c)

Q11. What are your three key suggestions to improve overall recruitment and selection procedure of the company?

a)b)c)

Personal DetailsDesignation :Gender :Age :

Thanks for sparing your valuable time and sharing your views.

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