Chapter-1

INTRODUCTION
Ashok Leyland, Alwar plant is one of the production units of Ashok Leyland ltd.
Alwar city situated in west north in Rajasthan and is very near to Delhi, the capital of
India. Alwar comes in NCR (National Capital Region) also it is located at MIA
(Matasya Industrial Area) Alwar. This plant was established in 1982 and has
completed his 30 years successfully. This plant known for his productivity. It is
basically an assembly plant where the chassis is assembled.
Ashok Leyland, Alwar is worlds largest CNG vehicles producing plant. CNG
(Compressed Natural Gas) is used as an alternate fuel to diesel and is very less
polluting. This pollution of CNG vehicles is less than even EURO IV vehicles
which is known for its lesser pollution valve.
The total covered area of Alwar plant is 352 acres. And fencing is done around 161
acres of area. The plant comprises of 5 shops called shop 1, shop 2, shop 5, shop 7 ,
shop 11. The plant has three gates one main gate for entering the goods carries and the
third for the products going out of the plant for sale. There is an administrative office,
one P & A department block, department offices, a medical centre, a canteen, a
newspaper reading room and library, a training centre and systems department, RSO
yard and the construction is going on for new stores. The over view of Alwar plant is
The plant is inaugurated on 22 08 1982.
The total land area is 352.09 acres.
Fenced area is 161.52 acres.

1.1 ASHOK LEYLAND

Alwar unit is 4th manufacturing unit of Ashok Leyland, other units are located in:1. ENNORE
2. HASUR (1) AND HASUR (2)
3. BHANDRA
Alwar unit is situated at Matasya Industrial Area. In 1948 company beginner as Ashok
motors. In 1952 it was renamed to Leyland motors and in 1955 it was named as
Ashok Leyland limited.
1.2 HISTORY OF ASHOK LEYLAND
The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by
independent India. Pandit Jawaharlal Nehru, India's first Prime Minister persuaded
Mr. Raghunandan Saran, an industrialist, to enter automotive manufacture. In 1948,
Ashok Motors was setup in what was then Madras, for the assembly of Austin Cars.
The Company's destiny and name changed soon with equity participation by British
Leyland and Ashok Leyland commenced
in

manufacture

of

commercial

vehicles

1955.Since then Ashok Leyland has been a major presence in India's commercial

vehicle industry with a tradition of technological leadership, achieved through tie-ups

with international technology leaders and through vigorous in-house R & D.
Be it full air brakes, power steering or rear engine busses. "Designing durable
products that make economic sense to the consumer, using appropriate technology",
became the design philosophy of the Company, which in turn has turned consumer
attitudes and the brand

personality. Ashok Leyland vehicles have built a reputation

for reliability and ruggedness. The 500000 vehicles we have put on the roads have
considerably eased the additional pressure placed
independent

on

road

transportation

in

India. Some of them like the double-decker and vestibule buses are

unique models from Ashok Leyland, tailor-made for high-density routes. In 1987, the
overseas holding by Land Rover Leyland International Holdings Limited(LRLIH)
was taken over by a joint venture between the Hinduja Group, the Non-Resident
Indian transnational group and IVECO. (Since July 2006, the Hinduja Group is
2

100%holder of LRLIH).The blueprint prepared for the future reflected the global
ambitions of the company, captured in four words: Global Standards, Global Markets.
Ashok Leyland embarked on a major product and process up gradation to match
world-class standards of technology .In the journey towards global standards of
quality, Ashok Leyland reached a major milestone in 1993 when it became the first in
India's automobile history to win the ISO 9002 certification.

Fig. 1.1 Workshop of car assembly

The more comprehensive ISO 9001 certification came in 1994, QS9000 in 1998 and
ISO 14001 certification for all vehicle manufacturing units in 2002. It has also
become the first Indian auto company to receive the latest ISO/TS 16949Corporate
Certification (in July 2006) which is specific to the auto industry
1.3 VISION
1. To be among global
2. Top 10 in truck and top 5 in buses
1.4 STRATEGIC OBJECTIVE
1. 80,000 trucks and buses by 2014-2015.
2. 35% market share in domestic M &HCV
3. Significant presence in chosen segments in Russia, Latin America and 1st
hemisphere markets.

1.5 MARK OF EXCELLENCE

Ashok Leyland introduced highest no of products in 2010-2011
1. 80% of Ashok Leyland products are manufactured on machines that are less than 5
year old.
2. 5 pillars of excellence.
Execution
Quality
Innovation
1.6 LEARNINGS ACHIEVED
Ashok Leyland has got the world class engineering and to other world class
technology that is relevant and affordable to the Indian customer is the philosophy
that drives R & D at Ashok Leyland. The role of Ashok Leyland is central in fulfilling
the company wide commitment to total customer satisfaction. Ashok Leyland has
achieved ISO 9002 in 1993 and received ISO 14001 certification in 2001 and many
others. There are many world class products of Ashok Leyland like: - buses for public
transport purpose, trucks for commercial purpose, vehicles for defense purpose and
many other world class equipments.
As we know through this project that Ashok Leyland is one of the leading automobile
manufacturers in the world and we also come to know that:
(A) Provides world class technology
To offer world class technology that is relevant and affordable to the Indian customer
is the philosophy that drives R & D at Ashok Leyland. Over the years, this philosophy
has been translated time and again into products that seamlessly integrate
international technology with local needs. The role of R & D is central in fulfilling
the company wide commitment to total customer satisfaction states Mr. R
Seshasayee, managing Director, and adds the increased infrastructural and financial
support expresses the companys determination to self- reliant in R & D.

(B) Provide value to the customer

The immediate R & D priorities are to pre activity address safety and environmental
issues, harness and adopt technologies that provide value to the customer in an
atmosphere enabling creativity and innovation powering those who engineer
tomorrows with an enabling infrastructure has been top priority for the company.
(C) Keep innovating their product
Ashok Leyland product development successes have come from a keen sense of
anticipation and attentiveness. The company initiated research into alternatives fuels
well before legislative debate had even began in the country. The result was the
implementation of CNG technology ahead of the rest promising a breath of fresh air
for polluted cities. For further improvement in policies of the company Ashok
Leyland introduced new 7 initiatives (N7i) in the company. By implementation of
these initiatives in the plant from the session April 08 to March 09, the company
achieved a total benefit of 165.2 laces in the session. The N7i are: 1) Increase number of GEMBAS
2) EEI roll out of all GEMBAS
3) CMI integration
4) Housekeeping (5S)
6) Identify critical machines
7) Quality GU wise 100 PPM level
1) Increase Number of Gembas
Mission Gemba: - Enhancing employees for world class globalised performance.
Vision
Achieving leadership in the domestic commercial vehicle markets and a significant
presence in the world market by 2014 through solutions by enhancing the employ for
their excellent work to promote them to do their best for the goal of organization. It is
totally based on the potential of the employee how can they do more, higher
5

productivity can be generated, how efficient and effectively do their job. If any
employee renders his service for a new invention or a way by which the production,
quality standards or any other standards can grow rapidly. Then the senior officers or
respective head of mission GEMBA awards the employee. The main emphasis is on
the increase of the potential of the employee. Motivate them through learnings, self
respect, honesty, work hard etc have to become the essential part of an employee
working in the organization.
It creates a positive psychological effect in the mind of employee, if he perform just
different job, respective with a aspect of development of the company, he is being
awarded and the same employee works with a difference in the company with more
advantages style.
It gives an environment of a friendly and competitive school which helps employee
and organization to achieving their ambitions.
GEMBA is a Japanese word, which means SHOP FLOOR. It provides quality
assurance, fastest delivery and the least cost to customer by

Offering appropriate products and services & adopting lean manufacturing

systems and practices through employee empowerment and participation.

Bench marking products, processes and people against best in the industry. In
processing of this plan everyday all permanent workers, engineers, managers
mount up on GEMBA floor and discuss their problem and solution with each

other.
Every day for their improvement suggestion every guy is awarded a number of
marks according their performance and offers a period the high scorer is
nominated and awarded by mission GEMBA award.

Various aspects of the mission GEMBA are: 1) Shop floor led team initiative focus on creating values through empowerment and
improving resource utilization.
2) When a problem arises, go to GEMBA first; check the relative objects take
temporary counter measure on the spot. Find the root cause standardize to prevent
recurrence.
6

3) Successful GEMBA requires a change in perception a culture change from

everyone in the organization. Everyone must be able to identify all the different kind
of waste and work constantly towards eliminating it.
4) Employees have the knowledge to change the work and make it more efficient as
this creates great satisfaction. In the information age GEMBA is anywhere where
process are performed and information originates or knowledge is gained.
5) Take a trip to GEMBA today. Observe and study the real value work of the
GEMBA it just may change your entire prospective of what you do.
(2) Effort and agronomy index (EEI) benefits:

Securing 2nd position in EEI tracker.

Employee involvement increased from 33% to 99.5%.
Associates know the benefits of EEI and they take initiation in learning of EEI

Calculation. 30% associates are aware of doing calculations.

Effort reduction in doing the work and associates are working with more
enjoy.

(3) Cost management initiative (CMI) benefits:

Securing 3rd position in CMI tracker , norms validated 100%.

Online integration and tracking implemented.
Abnormal cost in consumables consumption completely controlled.
30% tools codes standardization for all plants

(4) House Keeping (5S): Many people think keeping should be done by house wife at home and cleaners at the
work place. They do not realize that they too play an important role in keeping their
houses/workplaces clean. More important, they do not know how much they can gain
themselves by just practicing, good housekeeping.

The 5s Represents Five Japanese Words: 7

SEIRI: - Take out unnecessary items and throw them away.

SEITION: - Arrange necessary items in a proper order so that they can be

easily picked up for use.

SEISO: - Clean your workplace completely so that there is no dust anywhere.
SEIKETSU: - Maintenance a high standard of housekeeping and work place

organization at all items.

SHITSUKE: - Yrain people to follow good housekeeping disciplines
independently.

Benefits:

Securing 3rd position in 5S tracker across all units.

Scrap worth 5 corers sold.
PAR EXECELLENT AWARD to 5S quality circle team.
Introduction to internal and external signage in the factory.
5S layout preparation , 5S at home

(5) Inventory Benefits:

Securing 3rd position in inventory tracker across all units.

Reduction of negative WIP from baseline of 42 lacs to 5 lacs.
Reduction ISCM lead time 64 hr to 17 hr in Feb. 2009.
Reduction of absolute item by 100%.
Reduction of non moving item by 50%.

(6) Identify Critical Machines: Benefits:

Securing 1st position in critical machines tracker across all units.

OEE increased from 73% to 92%.
Indianization of improved spares to reduce repair and maintenance cost.
7 point TPM implementation in critical machines.
Zero accident achievements in critical machines.

(7) Quality Benefits:

Securing 1st position in quality tracker.

Self certification increased from 67% to 95%.
Process audit and product audit improves up to 87%.
DMP reduced from 188 points to 144 points.
Top 5 venders issues resolves up to 74% from previous status.
8

1.7 N7I MILESTONE IN ASHOK LEYLAND HISTORY

After the successfully implementation of the N7i during the period of April 08
March 09, the company got very amount of following tangible profits.

CFT -116.3 LACS

SGA 29.3 LACS
Quality circle 19.6 lacs
Total savings 165.2 lacs

1.8 DIAGRAM SHOWING THE LAYOUT AND FLOW OF MATERIAL

There are 5 stages of frame assembly and 13 stages of chassis assembly:

Fig. 1.2 Layout and flow Material process diagram

STAGE 1: - Radiator mounting brackets, air tank mounting, air cleaner mounting
bracket, battery mounting bracket, grease nipple fitment, bellcom lever mounting.

10

STAGE 2: - DC valve mounting, oil piping, clutch oil piping, quick release valve
mounting.
STAGE 3: - Spring fitment, frame punching.
STAGE 4: - Silencer fitment, first axle mounting.
STAGE 5: - Second axle mounting, slack adjustment.
STAGE 6: - Fuel piping, air piping, air filter mounting, and diesel filter mounting,
steering box mounting.
STAGE 7: - Engine mounting, fuel tank mounting.
STAGE 8: - Radiator fitment, radiator supports tightening, rear lamps fitting,
turbocharger outlet pipe connection and radiator hose connections.
STAGE 9: - Exhaust piping, shock absorber fitment (front and rear), battery
mounting and connection of circuits, battery casing fitment and second propeller shaft
mounting.
STAGE 10: -Tire mounting max cut checking.
STAGE 11: - FES mounting, electric fitments (male female connecting process).
STAGE 12: - Bumper fitment, FES wiring, universal joint (UJ) with steering handle,
ABC fitment and connecting.
STAGE 13: - Greasing of nuts, joints, etc off track arrangements.

1.9 WORKSHOP
In Alwar plant the various workshops are:
11

SHOP 1: - Chassis assembly takes place in the line by old assembly method and the
PDI (pre delivery inspection) is carried.
SHOP 2: - Chassis assembly takes place on conveyor line which is newly installed in
the plant.
SHOP 5: -Structural members and panel manufacturing on conveyor which is newly
installed in the plant.
SHOP 7: - Pre inspection delivery of chassis takes place in this shop which is newly
installed in the plant.
SHOP 11: - Bus body manufacturing takes place on the conveyor line which is newly
installed in the plant.

1.10 LAYOUT
The various parameter of the company are

12

 SHOPS AREA AND DESCRIPTION

5 SHOPS 140 * 100 14000 sq.mt. each
Shop office area 274.5sq.mt. in each shop.
Shop 1 Assembly activity
Shop 2 Chassis assembly shop
Shop 5-Structural members and panel manufacturing shop
Shop 7 Pre delivery inspection (PDI)
Shop 11 Bus body manufacturing shop
TRAINING CENTRE
1350 sq.mt. being used by service promotion for training and display models.
MAIN ADMINISTRATION BLOCK
Main admin block office space of 297sq.mt. which include following sectors.

Manufacturing managers office

Purchase department
Systems department
Reception and office service
Finance department
PERSONAL AND ADMINISTRATION BLOCK

Total space allotted for the personal department is 428sq.mt. this include following
sector.

Personal department
Medical centre

1.11 PROCESS FLOW CHART OF ASHOK LEYLAND

Purchase of raw material

Components machined

13

Rough
Assembly of
Milling

Drilling

Finish

Washing

Boring

Milling

End Milling

Milling Bearing caps

Engine Assembly
Fixing of Cranshaft and Bearing Caps

Fixing of Camshaft

Fixing of
Fitting of
Flywheel Housing

Assembly of

Fitting of

Compressor

Oil Pump

Stainer

Fitting

Fitting of

Oil Coolant

Belt

Final Product
Fig. 1.3 Process Flow Chart of Ashok Leyland

CRANKSHAFT:- CRANKSHAFT is attached with a gear and is fixed to the

bottom of the cylinder block by bearing caps.

CAMSHAFT:- CAMSHAFT is attached with a timing gear and is fixed in the

required space provided in the cylinder block
14

Chapter-2
ASHOK LEYLAND DEPARTMENTS
2.1 PROCUCTION DEPARTMENT
This department handles all the plan work for production. This department is
15

responsible for all the production and its process going at assembly line and also the
PDI (pre delivery inspection).They deal with all the workers to get the work output
from them for production. They decide which model is to be assembled according to
line availability of material and demand of production.
2.2 PERSONAL AND ADMINISTRATION DEPARTMENT
This department has to perform the number of functions such as all kind of
recruitments like executives, managers, and workers. They conduct various types of
tests and interviews for vacancy lying in the organization or at demand of managers.
They also take care of medical facility, canteen facility, library and security too.
They are also responsible for the discipline in the plant. Mainly they deal with all the
personal behaviors of employees. They arrange seminars and other motivating events
for the employees. They conduct cultural events and get together, in which they
include the family members of the employees for giving a change from routine work.
They record all individual working record in organization. They deal the relations
with other organizations and institutes. This department is known as human resource
department in other organization.
2.3 QUALITY CONTROL DEPARTMENT
This department is responsible for the quality of products and parts whatever they sell
or purchase. The quality checking is done in three processes, which are given as
follows:
1. Incoming material inspection
2. In process inspection
3. Final inspection
There is a GR & D (Goods Receipt and Dispatch) section, which receives goods, and
QC department inspect them and ensure the quality as per the recommended standards
and then send them to store. For in process inspection they use one chassis card in
which the worker check whether all things has been done which he had to do and
them do his signature in the card. This is known as self certification.
16

When the chassis become off track assembly line then the chassis goes for a road test.
The defects and short comings in the chassis are noted such as noise, smoke, driving
control etc. then an inspection of chassis takes place at PDI and then all the defects
are noted and are rectified. After that the chassis is passed to sales department by QC
department.
2.4 PPC DEPARTMENT
Production planning and control department is known as PPC department. This
department control GR & D section and store rooms. They receive the goods coming
from the factories. Then prepare a daily report of goods receive and send it to finance
department for further procedure.
They allot part number for the parts and parts are arranged according to the part
number in the store room. They keep all the records of store room. Monthly counting
of parts is also done.
PPC department does whole of the material planning for production. Also they make
available all the material required for the production at the time of production at all
the stages. Two bin system is being used here for the supply of material at all the
stages. This is like there will be two bins stage and, as one becomes empty that will
replaced by a bin full of the material.
2.5 UNIT PLANNING DEPARTMENT
This department basically does the planning work. They are given the project of some
new units to be prepared in the plant for which they plan the appropriate duration of
completion of project, cost estimation and benefits of the installation of new unit.
Presently they taking care of new rear axle assembly conveyor line project being
installed in shop 2, paint booth for body painting of futon bus in shop 5.
2.6 PRODUCTION SERVICES DEPARTMENT
This department is also known as maintenance department. They are responsible to
provide the services required for the production and also for the maintenance of all
equipments being used. They rectify the problem occurred in the equipment at the
time of breakdown of some equipment.
17

For example the equipments are bolt tightening machine, impact wrench, forklift,
overhead crane, conveyor, generator and electricity, oil filling machine, greasing
machine, pneumatic devices, lighting devices and fans etc. They do regular checking
and maintenance. A formal calling system is being used. Whenever the maintenance is
required at assembly line or some break down occurs in machine, a person press
button and the maintenance department will be informed by the system.
They also take care of horticulture in the plant. This makes the beauty of the plant and
makes the plant environment friendly green plant. They are responsible for those
instrument and services provided by them to achieving the production.
2.7 PURCHASE DEPARTMENT
Raw material is very important for the production. Purchase department purchases al
raw materials from various dealers and companies. They decide which material
should be bought from which company.
They also look at the cost of material to be purchased and the transportation charges.
It is better if the material is coming from a place nearer to the plant because the
transportation cost will be reduced.
They also the firm to sell the scrap items of iron; wood etc. the tender will be given
who ever will pay more.
They also hire contractors from the market by tendering to manage many works in
plant like material unloading, transportation, and construction.

2.8 FINANCE DEPARTMENT

This department takes care of all financial things of plant. They keep record of all the
salaries and alliance of the employees, the money spent on purchasing the things for
plant, the money earned by the sale of products and other financial activities. They
prepare monthly and annual budget of the plant.
18

Also they monitor the attendance of employees by an electronic card punching

attendance system. The entire employees are provided with an electronic card, which
is punched in the card punching machine at the time of entering the plant and at the
time of leaving the plant. The machine will note the time of punching and thus the
department gets the data.
2.9 SALES AND MARKETING DEPARTMENT
Products are made in the plant and they need to be sold for the customers. This
department takes care of all the marketing activities. After the product is passed from
QC department, sales and marketing department keeps all the products at RSO
(Regional Sales Office) with safety. The vehicle is kept in the RSO after fitting the
heat guards, warning triangles, RUPD (Rear under Protection Device) and canopy as
per the government rule.
Then at demand and requirement the products are sent to the dealers.
They look at the demand of product in the market and the customers feedback about
the product. They also provide the training for servicing of the product. They send
their report that in what amount market has demand to production departmentso that
they can decide the amount of production that they can.
2.10 SOURCING AND SUPPLY CHAIN DEPARTMENT
Supplier Management: Procurement & Contracting: Executing purchasing tender and
contract processes for any required service in your factory-to-dealer chain, either in
close cooperation with customer, or independently.
Payment Administration: Auditing the flow of invoices and initiating the payments
for

services in your factory-to-dealer chain.

Finding a suitable competitive supplier is fundamental to the success of a sourcing

strategy. With globalization, it is no longer efficient to limit your supply chain to one
country or location. Company can follow multiple best practices. Today companies
are using sourcing tools and also, engaging with the suppliers early through supplier
portal. With advanced sourcing tool the benefits are multifold. Alongwith drastic

19

reduction in time to search suppliers, companies are able to get the right suppliers
based on the parameters they set.
2.11 SUPPLIER ON BOARDING
Supplier on boarding refers to the process where finalized suppliers are equipped with
the necessary knowledge and behavior to become a part of the company's supply
chain. A supplier is required to submit various mandatory certificates and documents
related to company registration, insurance, diversity certificate, quality certificate etc.
Thus automating the on boarding process reduces the overall cycle time and helps
buyer companies to track compliance of the process.
The supplier portal makes the on boarding process simple and less time consuming. It
helps the supplier to upload the required documents and for the buyer company to
keep a track of it by installing approval workflows. It also enables maintaining an
audit trail to check compliance requirements. For instance, submitting the tax
documents before starting the business or a background check of the supplier.
2.12 SUPPLIER PERFORMANCE & EXPECTATION MANAGEMENT
The potential supplier has cleared the qualifying and selection stage, the contract
terms and conditions have been negotiated and agreed upon and the supplier has now
become a part of the company's supply chain. It is now very important for the
company to keep a check on the suppliers' performance vis--vis the set benchmark or
Key Performance indicators (KPIs) viz. product quality, innovation, on-time delivery,
carbon emission etc.
Companies should have a supplier segmentation strategy to bucket the suppliers based
on for instance, criticality in the supply chain or total spend. After the segmentation,
KPIs should be determined and assigned a particular weight age for each bucket and
the supplier performance must be reviewed based on the scores generated.
If the performance of a supplier is not satisfactory, the suppliers can be put through a
development program to ensure the suppliers move towards the preferred score and
meet the objective of the organization. The supplier management tool must enable the
buyer company to develop and manage supplier development program to drive the
suppliers towards a preferred score.
20

Through supplier performance and expectation management, companies can build a

strategic relation with their suppliers whereby they become the customer of choice for
the suppliers.
Value Chain

Fig. 2.1 Value chain management at Ashok Leyland

Supply Chain Management at Ashok Leyland

Supply Chain

21

Fig. 2.2 Supply Chain Management at Ashok Leyland

It has been found that the Automobile Giant Ashok Leyland Ltd, Chennai, has got one of
the very successful Supplier development Program as part of its World-Class Supply
Chain Management.
Mission Statement of the Company: "Our Vendors are our valued partners in our business
development and we shall work with them in a spirit of mutual co-operation to meet our
business objectives."

Vendor Development and Strategic Sourcing are handled by Corporate Materials

Department (CMD).
o CMD identifies the vendors, rates the vendors based on feedback received
from Supplier Quality Assurance Cell, sends drawings / specifications,
calls for quotes with detailed break-up of operation-wise costs, and
negotiates the price at which the parts will be supplied.

22

o In addition to CMD at Ennore, and the two Units at Hosur, there are
Materials Management Departments (MMDs) for scheduling based on

unit production plan.

Vendor Development of Strategic Sources
o Strategic Sourcing is central to the integrated Materials Management
function. Ashok Leyland's policy is to develop a vendor base committed
to continuous improvement to meet quality, cost and delivery standards.
o Ashok Leyland considers its vendors as partners in progress and believes
in establishing mutually beneficial relationships. Ashok Leyland provides
necessary technical assistance in the form of Project and Production
Engineering, to maintain quality levels. In addition, where required,
Ashok Leyland also helps vendors financially.

SCM one of the important task to improve, because some time before, The company was
facing the huge task of integrating its entire supply chain and at the same time it had to
reduce its costs, inventory, and improve customer satisfaction. Rising raw material cost
was a serious concern for the company. Therefore, Ashok Leyland decided to streamline
its supply chain process and the company started its SCM project Oscars to optimize its
supply chain and rationalize its sources.
The project Oscars Inbound included supplier partnership, vendor base rationalization,
tiering of suppliers and cluster information, inventory optimization through JIT and LCL,
total cost management, logistics initiatives, e-sourcing and global sourcing.
2.13 PDI (PRE DELIVERY INSPECTION)
It comes under the production department but it has its much utility that it has an
important role in the production. The vehicle coming from assembly line is not perfect
in quality. It has many defects. So the chassis is inspected, faults are arrested in this
section and all the defects and faults are noted .The chassis comes into PDI section
after road testing. Then all the defects and faults found in the chassis are rectified
using necessary tools items. Then the chassis is painted in paint booth and if there is
any dent on the chassis FES then it is removed and finally passed to sales department.
The chassis passed from PDI is fault free and perfect in quality. Painting of the chassis
is also done under this department.

23

2.14 GR & D (GOODS RECEIVE AND DISPATCH)

This department is providing for providing for giving their services when the goods
are received and dispatch in the plant as a material from outside and when it
dispatches outside the plant .This basically gives for their quality and amount
assuring.
DRAWBACK
As Ashok Leyland is giving its best to its customer but then also there are some
drawback :

The domestic sales of the company are not up to the mark.

Ashok Leyland has not got a foothold in the luxury trucks segment in its
domestic market.

Ashok Leyland

have low cost advantage over its competitors, once the

competitors find out the low cost production methodology then there will no
competitive advantage.

CNG buses of Ashok Leyland are also not playing well on the roads, some or

other break down creating problem for them.

Some of the automobile company are going to launch HMV to give
competition to Ashok Leyland and till now Ashok Leyland not got any
alternative to comptite with it.

Chapter-3

24

CERTIFICATES AND QUALITY POLICY OF ASHOK LEYLAND

3.1 CERTIFICATES

In the journey towards global standard of quality of Ashok Leyland reached a

major milestone in 1993, while it becomes the first Indian history to win the

ISO 9002certification.
The more comprehensive ISO 9001 certification came in 1994.
QS - 9000 in 1998.
ISO 14001 certification for all vehicles manufacturing unit in 2002. It has
also become the first Indian auto company to receive the latest ISOTS 16949
corporate certification (in July 2006) which is specified to the auto industry.

3.2 QUALITY POLICIES

It is the objective of Ashok Leyland quality to achieve customer satisfaction by
meeting the customer expectations in relation to the product and services offered by
the company.
Towards this objective the quality policy of Ashok Leyland is:

To make continuous improvements in the products manufactured by the

company.
Give uninterrupted quality services offered to the customer.
To enhance employee potential to contribute to quality by improving the

knowledge and skills of the employee as appropriate to their functions.

To induce in venders, commitment to continue improvement to meet quality

standards.
To make good relation with the customer by providing regular service to

vehicle by their service centre.

Get feedback from the customer to improve the quality of product and

customer satisfaction.
Increasing the research and development centre to achieving quality standards
and quality goal of the organization.

Environment Policy

25

Tech
industrialization

development

More production More

population

automobiles More food

growth

required

Any type activity that is performed or any type of product that is manufactured has an
effect on the surrounding or environment.
At Ashok Leyland are committed to preserving the environment through a
comprehensive environmental policy and a proactive approach in planning and
executing our manufacturing and service activities.
We are concerned about the earth our children will inherit. Thats why we make sure
our vehicles consume less fuel and pollute less. This concern is reflected in the
manufacturing systems, the various processes, energy conservation measure and
conscious greening indicatives of the company.
A system is employed to control or minimize the adverse impact on the environment
is environment management system (EMS).
Objective of Ashok Leyland Environment Policy

To adhere to all applicable environment legislations and regulations.

To adopt pollution preventive techniques in design & manufacturing of our

products.
To conserve all such resources such as power, oil, gas, water, compressed air

etc. and optimizes their uses through scientific methods.

To provide a clean working environment to our employees, contractors, and

neighbors.
Continuously strive to minimize waste generation by all possible ways and to
reuse and recycle same through a time bound action plan.

Safety and Health Policy

Intention and commitment of the top management

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Ashok Leyland affirms that its entire employee irrespective of the cadre or rank need
to be safe guarded against any person injuries or damage to the properties during
working period. That the management recognize the principle that accident prevention
contributes in the long run to all process and development of the organization.
Towards this objective, Ashok Leyland is committed to:

Implementing all practical safety measures like safe working and

environmental condition.
Carrying out a systematic critical appraisal of all potential hazards involving

personal, plant service and operating methods.

Following strictly rules and regulation incorporated in the factories act and

rules.
Maintaining safe and health education program for employee with specific

emphasis on creating safety and health awareness.

Welcoming useful and constructive suggestions and ideas in regard to safety
and health.

Energy Power Resources

The power is being received from Jaipur Vidhut Vitran Nigam Limited of 33KVA line
which is stepped down to 11KV at main receiving station. Each shop has got further
step down transformer to being down the voltage to 440 Volts.
The plant has SKL diesel generator of 1100KVA kept in generator house.
Total diesel storing capacity of the generator house is 133KL. The generator output
voltage is 11KV

Quality Assurance of Ashok Leyland

Ashok Leyland believe that our impressive strides in the marketplace stem in equal
parts from our proactive approach and our customers' unstinting support, earned the
only way Ashok Leyland

know: by giving our customers the most appropriate

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transport solutions for each of their applications, and by backing them up with
consultancy, finance, driver training and a responsive after-market network. Ashok
Leyland

are conscious of the fact that vehicles are more than just a means of

transporting people and goods; Ashok Leyland understand that they have a deep and
far-reaching impact on society, the national economy and the environment.
Ashok Leyland have, therefore, always endeavored to engineer products and systems
that promote progress on all these fronts. Ashok Leyland firmly believes that this
honest approach will make the Ashok Leyland marquee the symbol of the very best in
transportation, today and tomorrow. Ashok Leyland care for their customer, they try to
give best quality engineering as well as best quality service to their customer.
The major characteristic through which Ashok Leyland give the best quality to their
customer are:* Reliability
* Maintainability
* Safety
* Strength
* Performance
* Features
* Conformance
* Durability
* Service
* Response

*Aesthetics
* Reputation

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Ashok Leyland is committed to achieve customer satisfaction by anticipating and

delivering superior value to the customer in relation to their own business, through the
products and services offered by the company and comply with statutory
requirements.
The quality assurance of Ashok Leyland is to make continual improvements in the
processes that constitute the quality management system, to make them more robust
and to enhance their effectiveness and efficiency in achieving stated objectives
leading to
(1). Superior products manufactured as also services offered by the company.
(2). Maximum use of employees potential to contribute to quality and environment by
progressive up gradation of their knowledge and skills as appropriate to their
functions.
(3). Seamless involvement from suppliers and dealers in the mission of the company
to address customers changing needs and protection of the environment.
For the Quality assurance Ashok Leyland completed journey towards global standards
of quality, history to win the ISO 9002 certification. The more comprehensive ISO
9001 certification came in 1994, QS 9000 in 1998 and ISO 14001.

Chapter-4
LEYLAND PRODUCTS AND ACHIEVEMENTS
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4.1 PRODUCTS
From 18 seated mini buses used by schools and corporate to 82 seated to double
Decker buses from 7.5 ton to 49 ton in haulage vehicles, from numerous special
vehicle applications to diesel engines for industrial, marine and genet applications.
Leaders in the Indian bus market, offering unique models such as CNG, Double
Decker and Vestibule bus

Fig. 4.1 Leyland product bus

Ashok Leyland offers a wide range of products. Through timely innovations the
company has created new products and application segments, thereby expanding the
market. From eggs to steel , from flowers to cars. What doesnt moves Ashok
Leyland vehicles?
The bus run on Delhi - Lahore is also made by Ashok Leyland.

Apart from these Ashok Leyland makes the engine which are being used for

generates, marine and industrial applications.

Ashok Leyland makes three kinds of engines AL engines, Iveco engine;
mostly hino engines are being used.

Engines:-Diesel engines for Industrial, Genset and Marine applications, in

collaboration with technology leaders.

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Fig. 4.2 Leyland product engine

Ashok Leyland have made and sold product like roadways buses, CNG buses, defense
trucks vestibule buses, luxury buses, rear engine buses, school buses, tripper and
dumper, vehicles for fire brigade.

Trucks:-Pioneers in multi axle trucks and tractor-trailers.

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Fig. 4.3 Leyland product truck

Defence & Special:- Largest provider of logistic vehicles to the Indian army.

Fig. 4.4 Leyland product Defense & Special Army Truck

4.2 CUSTOMER BASE AND SEGMENTATION

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Ashok Leyland, over five decades in the transport solution industry, offering a world
class range of trucks, buses, special application vehicles, and engines, touching
millions across 40 countries worldwide. Ashok Leyland has a good customer base
most of the customer who comes to Ashok Leyland become a loyal customer .
Ashok Leyland is Brand name with the flagship of hinduja group. To sell is to know
your customers. Ashok Leyland has built-up a data base of 130,000 customers. The
information captures the business nuances of the customers and shows Ashok Leyland
precisely where and how the customer would use trucks. The company today knows
much more about its customers today than earlier. Ashok Leyland has a large
customer base for public transport buses, commercial vehicles, defense and special
vehicles for special purpose. It caters to different class of society which includes
individual buyer, industrial buyer, government buyer and defense also.
Segmentation of Ashok Leyland can be done on the basis of its user:Segmentation

Industrial user

Defense user
Public user

Government user

Fig. 4.5 Segmentation of Ashok Leyland

INDUSTRIAL USER:- Industrial user includes transportor,logistics company, coal
and mining industry and other industries etc.
PUBLIC USER:-Public user includes individual or passenger transport .
GOVERNMENT USER:- Government user include state and central transport like
DTC,UPSRTC and other.
DEFENSE USER:- Defense user include indian army trucks,tanks and transport
buses.
4.3 COMPETITION OF ASHOK LEYLAND WITH OTHER AUTOMOBILE
SECTOR
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Competition with tata motors:Ashok Leyland Ltd. will introduce 15 new truck models as India's biggest truck
makers by sales seek to beat growing competition from Tata motors. The new truck
models under its new U-Truck platform by March 2011,The trucks will be between 16
tonners and 49 tonners. To Compite with Ashok Leyland Tata motors will also
introduce three new heavy trucks in India by March from its Prima range of so-called
world trucks. As, we had seen that Ashok Leyland low floor buses giving tide
competition to Tata motors low floor buses in Delhi.
Competition with eicher:Eicher is also one of competitor of Ashok Leyland, Eicher began its business
operation in 1959 with Tactor, but now Eicher had expanded itself with Trucks, Buses,
Gear box, etc. Eicher is giving competition to Ashok Leyland with Trucks and Buses,
Eicher small trucks are making their good market in India.
Competition with mahindra:Mahindra had also launched a truck in collaboration with Navistar Inc. USA on Indian
roads known as Mahindra Navistar, which is going to give tuff competition to Ashok
Leyland.
With a commanding strength of the about 12,000 employees the company is looking
forwards to enhance the scope of its action. It is aiming at expanding its production
operation overseas to make it a more globally accessible company. It is looking to
acquire a small to medium sized commercial vehicle manufacturers in China and
other developing nations, which have an established product line. An example would
be the 2007 acquisition of the Czech based Avias truck business rechristened Avia
Ashok Leyland Motors.

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4.4 ACHIEVEMENTS OF ASHOK LEYLAND

1966

Introduced full air brakes.

1967

Launched double Decker bus.

1968

Offered power steering in commercial vehicles.

1980

Introduced the international concept of integral bus with

air suspension.

1982

Introduced vestibule bus.

1992

Won selfcertification status for defense supplies.

1993

Received ISO 9002.

1997

Indias first CNG powered bus jointed the BEST fleet.

2001

Received ISO 14001 certification for all manufacturing

units.

2001
2004

Launched hybrid electric vehicle.

Signed an agreement for segmenting up a State of The
Art driver training institute at Burati

2005

State of The Art driver training institute opens in Delhi.

2006

Ashok Leyland and Bosch has joined hands with the IIT
Madras to setup the Ashok Leyland and Bosch center of
excellence in Engineering Design at the IITM campus.

2009
2010

Ashok Leyland and Bank of Baroda singed a MoU.

Ashok Leyland has bagged an order for 600 vehicles

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CONCLUSION
Its been privilege to do in plant training in one of the Indias largest automobile producer
ASHOK LEYLAND. It has helped in many ways to improve the knowledge about the
actual work done in the industries and to have hands on experience.
This project that I undertook was truly a very rewarding experience for me in more than
one way. It has also helped me in enhancing my skills on the personal front. And I feel
extremely satisfied by the fact that I have managed to develop the project of course with
equal contribution from my lone team member. I think I have exploited the opportunity
that came my way to the fullest extent by increasing my industrial knowledge and also
gaining the valuable work

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REFERENCES
I take some more help to prepare my project file from internet, I take some figures, data,
history about Ashok Leyland, introduction about Ashok Leyland, departments of Ashok
Leyland and photos of bus, chassis, defense army truck and engine. The name of the site is
www.ashokleylandlimitedalwar unit.com.
Lastly, I am thankful to my colleagues especially who helped me in creating project file and
training report successfully. I truly believe, I have learned something here and it was a
wonderful experience to me.

https://www.scribd.com/doc/53718640/Field-Report
https://www.scribd.com/doc/97267026/Production-Process-of-Ashok-Leyland
https://www.scribd.com/doc/38448439/Final-Report-of-Inplant-Training-Review
https://www.scribd.com/doc/46123030/Ipt-Report
https://www.scribd.com/doc/29897966/PPT-on-Ashok-Leyland

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