SUMMER TRAINING PROJECT REPORT ON STUDY ON THE AWARENESS OF RICO
PRODUCTS AND
MATERIAL MATERIAL MANAGEMENT MANAGE MENT
In partial fulfillment of the requirement for the award of the degree of MASTERS OF BUSINESS ADMINISTRATION Se!!ion "##$%"#&&'
A (ro)e*t Done at RICO AUTO INDUSTRIES LTD
UNDER THE SUPERVISION OF:
SUBMITTED By:
Mr. M.K.RAGHAV
SUMIT DHINGRA
Divisi!"# Divisi! "# M"!"$%r
M.B.A SEC&B'
&Fi!"!(% ) T"*"+i!' T"*"+i!'
R## N,-/01-23
INSTITUTE OF MANAGEMENT MAHARISHI MARKENDESHWA UNIVERSITY MULLANA&AMBALA'
PREFACE
+la!!room !tud, i! the foundation- whi*h i! e!!ential- .ut getting down * at a t f ro r o m a t re r e e i ! d if i f fe f e re r e nt n t w he h e ne n e /e / e r i t * om o m ee!! 0 T o . ri r i dg d g e t he h e g aap p .e . e t w e e n t h e t h e o r , a n d p r a * t i * a l - i t i ! e ! ! e n t i a l f o r t h e ! t u d e n t t o ! t e p o u t o f t h e * l a ! ! r o om o m a n d m o / e a r o u n d t h e * o r p o r a t e w o r l d 0 + l a ! ! ro ro o m theor, *an pa!! on 1nowledge .ut attitude and !1ill! *an .e enhan*ed f r o m a * t u a l m a r 1e 1 e t e 2 p o ! ur u r e w i t h t h e m 0 R I + O A UT U T O I N D U S TR TR I E S 3TD 0 p r o/ o / i de d e d m e a n o p po p o r tu t u n it i t , t o e 2 pe p e r ie i e n *e * e a n a * tu tu a l i n du d u ! tr tr , *ondition0
It i! *orre*tl, !aid that mar1et e2po!ure i! nearl, a *i/ili4ed form of warfare where mo!t of the .attle! are won ., *i/ili4ed thin1ing and the attitude0 The pre!ent training report gi/e! a detailed /iew of the indu!trial training training underta1en at RI+O AUTO INDUSTR5 3IMITED from #6 th Fe.uru Fe.uruar, ar, "#&7 to o8th Augu!t "#&70 "#& 70 Th Thee train training ing helped helped me in ha/ing ha/ing a /iew /iew of impl implem ement entin ing g m, pra*t pra*ti* i*al al 1nowledg 1nowledgee to indu!tri indu!trial al en/ironm en/ironment0 ent0 The trainin training g at RI+O RI+O AUTO AUTO INDUST INDUSTR5 R5 3IMITED i! definitel, going to pla, an important role in de/eloping an attitude for hard wor1 and !elf *onfiden*e for m, future0
+la!!room !tud, i! the foundation- whi*h i! e!!ential- .ut getting down * at a t f ro r o m a t re r e e i ! d if i f fe f e re r e nt n t w he h e ne n e /e / e r i t * om o m ee!! 0 T o . ri r i dg d g e t he h e g aap p .e . e t w e e n t h e t h e o r , a n d p r a * t i * a l - i t i ! e ! ! e n t i a l f o r t h e ! t u d e n t t o ! t e p o u t o f t h e * l a ! ! r o om o m a n d m o / e a r o u n d t h e * o r p o r a t e w o r l d 0 + l a ! ! ro ro o m theor, *an pa!! on 1nowledge .ut attitude and !1ill! *an .e enhan*ed f r o m a * t u a l m a r 1e 1 e t e 2 p o ! ur u r e w i t h t h e m 0 R I + O A UT U T O I N D U S TR TR I E S 3TD 0 p r o/ o / i de d e d m e a n o p po p o r tu t u n it i t , t o e 2 pe p e r ie i e n *e * e a n a * tu tu a l i n du d u ! tr tr , *ondition0
It i! *orre*tl, !aid that mar1et e2po!ure i! nearl, a *i/ili4ed form of warfare where mo!t of the .attle! are won ., *i/ili4ed thin1ing and the attitude0 The pre!ent training report gi/e! a detailed /iew of the indu!trial training training underta1en at RI+O AUTO INDUSTR5 3IMITED from #6 th Fe.uru Fe.uruar, ar, "#&7 to o8th Augu!t "#&70 "#& 70 Th Thee train training ing helped helped me in ha/ing ha/ing a /iew /iew of impl implem ement entin ing g m, pra*t pra*ti* i*al al 1nowledg 1nowledgee to indu!tri indu!trial al en/ironm en/ironment0 ent0 The trainin training g at RI+O RI+O AUTO AUTO INDUST INDUSTR5 R5 3IMITED i! definitel, going to pla, an important role in de/eloping an attitude for hard wor1 and !elf *onfiden*e for m, future0
ACKNOWLEDGEMENT
On !u**e!!ful *ompletion of m, !i2 month! training report- I am grateful to the manage nagem ment ent of the RICO For gi/i gi/ing ng me thi! thi! RICO AUTO AUTO INDUS INDUSTRI TRIES ES LTD0 For opportunit, to undergo m, training in there e!teemed pre!tigiou! organi4ation0
For ma1ing ma1ing thi! pro)e*t po!!i.le po!!i.le-- I e2pre!! e2pre!! m, deep !en!e !en!e of the gratitud gratitudee to Mr for pro/i pro/idin ding g their their /alua /alua.le .le helphelp- !up !uppor portt 9 U!!i4ris5!"!&HR U!!i4ris5!"!&HR D%6"r+7%!+' D%6"r+7%!+' for pre*iou! time in the !u**e!!ful !u **e!!ful *ompletion of the th e pro)e*t0
Al!o- I am than1ful to the fa*ult, of m, *ollege for their *ontinued guidan*e and in/alua.le en*ouragement0
Finall, I am than1ful to all the re!pondent! who!e re!pon!e! were of utmo!t important for the pro)e*t0 3a!t .ut not the lea!t- I would li1e to pla*e a word of appre*iation on re*ord for all tho!e who!e dire*tl, and indire*tl, ha/e helped me for the !u**e!!ful *ompletion of the pro)e*t0
AJAY KUMAR
TABLE OF CONTENT
TOPICS
PAGE NO.
PR PREFACE
AC ACKNOWLEDGEMENT
2
CHAPTER, -
INTRODUCTION
8
CHAPTER ,
LITERATURE REVIEW
--
CHAPTER,9
METHODOLOGY
-
CHAPTER,2
AUTOMOBILE INDUSTRY PROFILE US
INDUSTRY
-8
AUTOMOBILE
CHINA INA
AUTO UTOMOBIL BILE 9
INDUSTRY AUTOM O BI LE I NDUSTRY IN I ND IA
.1
CH CHA P TE R , : C O M PAN Y P R OF I L E
90
COMPANY PROFILE AND 2 HISTORY
COMPANY
/
ORGANI;ATION STRUCTURE SWOT ANALYSIS CHAPTER, 3
MATERIAL MANAGEMENT
3
DOCUMENTATION OF MATERIAL C HA P TE R , 1
1-
MANAGEMENT E VAL U ATI O N
83
FINDI NDING AND ANALY ALYSIS C HA P T E R , 8
81
CONCLUSION
0/
CHAPTER,0 BIBLOGRAPHY
0
INDE< OF TABLE
TOPICS
PAGE NO.
AUTOMOBILE PRODUCTION TRENDS
99
AUTOMOBILE DOMESTIC SALES TERNDS
92
AUTOMOBILE E
9
INDE< OF GRAPHIC
TOPICS
PAGE NO.
GLOBAL TRENDS
TOP
/
MOTOR
VEHICLES
PRODUCING
COUNTRY IN //1
TURNOVER OF AUTOMOBILE INDUSTRY IN 0 YEAR //2,/ TO //8,/0
MARKET SHARE OF DIFFERENT VEHICLES
9-
IN //0,-/
RICO GROUPS TURNOVER -001 TO //8
22
CHAPTER -
INTRODUCTION
The training report i! a.out the manufa*turing the produ*t of RI+O Auto Indu!trie! 3td0RI+O AUTO i! a d,nami* world *la!! engineering *ompan, !uppl,ing a .road range of high pre*i!ion full, ma*hined ferrou! and aluminium *omponent! and a!!em.lie! to automoti/e OEM
Material and it! management i! not a new thing- it i! there from the !tarting of the .u!ine!! -unfortunaetl, earlier no.od, relai!e it! importan*e .ut it ha! gained a lot of importan*e for the pa!t few ,ear! .e*au!e of the .enefit! offered ., it0 It ha! emerged a! the mo!t *riti*al *omponent a! *orporation! glo.ali4e their operation!0 COMPANY PROFILE=%
Ri*o i! a world%*la!! engineering *ompan, !uppl,ing a wide range of high pre*i!ion full, ma*hined aluminium and ferrou! *omponent! and a!!em.lie! to automoti/e OEM! a*ro!! the glo.e0 Ri*o
Ri*o Auto In*orporated &$>;%>7' and +ommer*ial (rodu*tion Started &$>8' Aluminum ?(D+ (lant !et up in Dharuhera ;# @m! from Delhi- India' T+ with F++ apan for manufa*turing of +lut*h A!!em.l,
-00/,0
Ferrou! +a!ting 9 Ma*hining (lant !et up in urgaon "# @m! from Delhi- India' Entered International Mar1et a! OEM Supplier to ME+ apan0 -002,03
F++ RI+O 7#=7#' C formed Started !uppl,ing glo.all, to USA 9 U@ Eaton- +ummin!- M et*0' -008,//
Se*ond Aluminum ?(D+ 9 Ma*hining (lant !et up in urgaon ///,/
Set up full !er/i*e Engineering- De!ign 9 De/elopment fun*tion0 Added +u!tomer!= Ford- aguar- 3and Ro/er
+ertified TS &8$;$- ISO &;###&- O?SAS &>##& //,/2
Enhan*ed Ferrou! 9 Aluminum +apa*it, Added +u!tomer!= +aterpillar- ?one,well- Detroit Die!el- Col/o //2,/3
R9D +enter !tarted Added +u!tomer!= Ni!!an- Tata- (er1in! //1
C with +ONTINENTA3 Automoti/e S,!tem! ?,drauli* Bra1e!' C with INFEI +?INA Aluminum Allo, heel! % " heeler!' A*quired "7 a*re! land in +hennai0
FUTURE PLANS OF THE FIRM : • • • •
Redu*e dependen*, on other indu!trial !e*tor0 Sear*hing for new *u!tomer!0 E2pan!ion of the firm0 In/e!tment in the other profita.le indu!trial !e*tor!0
PRODUCTS OF RICO : PRODUCTS +lut*h a!!em.l, heel hu. a!!em.l, Bra1e panel a!!em.l,
CUSTOMER ?ero %?onda ?ero% ?onda ?ero% ?onda
CUSTOMER:
?ero 9 ?onda i! one of the leading !tar in motor*,*le manufa*turing0 The other ma)or *u!tomer! .e!ide of ?ero and ?onda are = • • • • • • •
Maruti Su4u1i 0M motor! S*ooter india Ford motor *ompan, aguar Col/o +ummin! engine *ompan,
,S OF THE COMPANY: • • • • •
SEIRI SORTIN' SEITON S5STEMATISIN' SEISO S?ININ' SEI@ETSU STANDARISATION' S?ITSA@ESE3F DIS+I(3INE'
WASTAGES DURING PRODUCTION: • • • •
o/er produ*tion re)e*tion idle time unne*e!!ar, tran!portation0 OBJECTIVE:
•
Aim! at produ*ing profe!!ional! endowed with te*hni*al *ompeten*e andleader!hip qualitie!0
•
To infu!e thorough 1nowledge and impart indu!tr, %oriented pra*ti*al training toma1e the !tudent! a .reed apart0
•
To in*ul*ate a !en!e of di!*ipline and re!pon!i.ilit, *oupled with logi*al thin1ing-!o that the, are an a!!et for their emplo,er!0
•
To in!till a high le/el of !elf%*onfiden*e to ma1e them !u**e!!ful in all wal1! of life in*luding entrepreneur!hip0
•
To empha!i4e their all round de/elopment- ., en!uring parti*ipation in *ulturala*ti/itie!- group di!*u!!ion!- !o*ial get%together!- !port!- et*0
•
To im.i.e a qualit, that ma1e! them .etter *iti4en!0
•
To *reate profe!!ional *ompeten*e0
CHAPTER, METHODOLOGY
An opinion !ur/e, wa! underta1en and enquir, wa! tran!lated in under!tanding the /ariou! a!pe*t! of the organi4ation0 The data wa! *olle*ted through de!*ripti/e re!ear*h methodolog,0 Re!ear*h in*lude! field !ur/e, and inter/iew of the offi*ial!of /ariou! department! of the *ompan,0
OBJECTIVE:, Pri7"ry O=>%(+iv% •
To !tud, the produ*tion department of RI+O Auto Indu!trie!0 S%(!?"ry O=>%(+iv%s
•
To pro*ure the in/entor, le/el
•
To !tore the in/entor,
•
To i!!ue the in/entor, of the *ompan,
•
To e2plore the !tatu! of in/entor,
RESEARCH DESIGN
A per!onal inter/iew with !enior! and pra*ti*al wor1 in *ompan, wa! held while the /i!it in !tore department 0
INSTRUMENTS
Cerifi*ation of !u.%*omponent with qualit, guage!0 Material
handling
in!trument!
trolle,-
*on/e,or!mo/ment
of
material'-
pipeline!0et*0 TOOLS AND TECHNI@UES OF ANALYSIS
U!e SA( !oftware (ie *hart! Bar graph! DEPARTMENTS
•
Engineering Department
•
(rodu*tion Department
•
elding department
•
ualit, !e*tion
ENGINEERING DEPARTMENT
&0Engineering department deal! with de/elopment of the fore *oming part! of Maruti0
.enerall,- ma)orit, of the part! are from MU3- gn0 (art! are prepared andthere
trial i! ta1en0 Thi! department al!o deal! with *o!ting of !heet metalpart!- in whi*h quotation are prepared in order to !u.mit to the *u!tomer! and /endor!0
Pr?(+i! D%6"r+7%!+
In produ*tion department metal !heet! are gi/en de!ired !hape! through !tamping pro*e!!0 Stamping pre!! i! u!ed to produ*e the !tamping operation0 W5"+ is " s+"76i!$ 6r%ss
A !tamping pre!! i! a ma*hine that hou!e! the !tamping tool! tooling' and *arrie! them around a**ording to the 1inemati*! indi*ated ., the u!er! pro*e!! !et%up'0The 1nowledge of the pre!! u!ed for a !tamping operation pro/ide! u! with u!eful *lue! regarding= • • •
Calue! and di!tri.ution of re!training for*e! Tool deformation *au!ed ., !tamping for*e! +onta*t andor gap .etween tool! and .lan1 ?owe/er- we !hould re*all that at the moment when the die de!ign i! *arried out- the pre!! i! u!uall, not ,et 1nown- !o that it! *hara*teri!ti*! are rather a fa*tor of noi!e than a u!eful information0 There for -it . will .e important to ha/e a de!ign that i! ro.u!t with re!pe*t to the pre!! t,pe0 W5"+ is " s+"76i!$ +# W5"+ is 6r(%ss ?%si$!
GLOSSARY:D%si$! sr"(%
(art a! de!igned to fit in the *ar after trimming' B#"!45#?%r
Surfa*e! that hold the .lan1 .efore the forming sr"(%
operation- in*luding the re!training Pr?(+i!
un*tion .etween the two former !urfa*e!sr"(%r!,s
prote*ting the de!ign !urfa*e and *ontrol in g material flow Di%"(%
Run%off! G .lan1 holder WELDING DPARTMENT R%sis+"!(% W%#?i!$
Re!i!tan*e elding i! a welding pro*e!!- in whi*h wor1 pie*e! are welded due to a *om.ination of a pre!!ure applied to them and a lo*ali4ed heat generated ., a high ele*tri* *urrent flowing through the *onta*t area of the weld0 S6+ W%#?i!$ &RSW'
Spot elding i! a Re!i!tan*e elding R' pro*e!!- in whi*h two or more o/er lapped metal !heet! are )oined ., !pot weld!0The method u!e! pointed *opper ele*trode! pro/iding pa!!age of ele*tri* *urrent0 The ele*trode! al!o tran!mitt pre!!ure required for formation of !trong weld0 Diameter of the weld !pot i! in the range :% &" mm0 Spot welding i! widel, u!ed in automoti/e indu!tr, for )oining /ehi*le .od, part!0
@UALITY CONTROL SECTION
A! the name !ugge!t! thi! !e*tion hou!e! all !ort! of tool! and mea!uring in!trument! li1e/ernier *aliper!- /ernier height gauge- !lip gauge!- !urfa*e plate!- radiu! gauge!in!ideout!ide mi*rometer!- depth gauge! and hardne!! te!ting ma*hine!- torque wren*h te!ting ma*hine et*0 for *he*1ing the *omponent! pur*ha!ed from the /endor! from out !ide the firm .efore .eing !tored into the !tore l,ing ad)a*ent to thi! !e*tion0Thi! !e*tion monitor! whether the *omponent! !upplied ., the allied /endor part, *o/er! the qualit, !pe*ifi*ation! of the *ompan, or not and a**ording
ta1e! *orre*ti/e a*tion a! and when required0 It al!o 1eep! a tra*1 re*ord of the !to*1 of *omponent! in!ide the !tore0Being an ISO *ertified *ompan,H the firm i! deepl, *on*erned with managing of qualit, of the pur*ha!ed *omponent! whi*h ultimatel, affe*t the qualit, of it! final produ*t0The ualit, (oli*, of the *ompan, *an .e quoted a!= (rodu*ing world *la!! tra*tor! in qualit, and relia.ilit,0 Total *u!tomer !ati!fa*tion through !er/i*e! +reating a *ulture among all emplo,ed toward total qualit, *on*ept! +on!tant up gradation of te*hnolog, and human e2*ellen*e0 After !o man, a**ompli!hment!- the *ompan, i! !till !tri/ing hard to e2pand it! *apa.ilitie! and !etting up new e!ta.li!hment! and manufa*turing unit! in different part! of the *ountr,0 Some of the manufa*turing unit! are under *on!tru*tion and !oon will .e read, to wor10 It ha! !igned MOU
S:,
7Si! the name of a wor1pla*e organi4ation methodolog, that u!e! a li!t of fi/e apane!e word! whi*h are !eiri- !eiton- !ei!o- !ei1et!u and !hit!u1eE!$#is5 7%"!i!$ S. Sr+i!$ &Seir ':
Eliminate all unne*e!!ar, tool!- part!- and in!tru*tion!0 o through all tool!-material!and !o forth in the plant and wor1 area0 @eep onl, e!!ential item! andeliminate what i! not required- prioriti4ing thing! per requirement! and 1eeping themin ea!il,% a**e!!i.le pla*e!0 E/er,thing el!e i! !tored or di!*arded0 S+r"i$5+%!i!$ r s%++i!$ i! r?%r s+"=i#i% & Seiton'
There !hould .e a pla*e for e/er,thing and e/er,thing !hould .e in it! pla*e0 Thepla*e for ea*h item !hould .e *learl, la.eled or demar*ated0 Item! !hould .earranged in a manner that promote! effi*ient wor1 flow- with equipment u!ed mo!toften .eing the mo!t ea!il, a**e!!i.le0 or1er! !hould not ha/e to .end repetiti/el,to a**e!! material!0 Ea*h tool- part- !uppl,- or pie*e of equipment !hould .e 1ept*lo!e to where it will .e u!ed in other word!- !traightening the flow path0 Seiton I! one of the feature! that di!tingui!he! 7S from !tandardi4ed *leanup0 Thi! pha!e *anal!o .e referred to a!0 S%%6i!$ r s5i!i!$ r (#%"!#i!%ss sys+%7"+i( (#%"!i!$ & Sei!o'
+lean the wor1!pa*e and all equipment- and 1eep it *lean- tid, and organi4ed0 At the end of ea*h !hift- *lean the wor1 area and .e !ure e/er,thing i! re!tored to it! pla*e0 Thi! ma1e! it ea!, to 1now what goe! where and en!ure! that e/er,thing i! where it .elong!0 Spill!- lea1!- and other me!!e! al!o then .e*ome a /i!ual !ignal for equipment or pro*e!! !tep! that need attention0 A 1e, point i! that maintaining *leanline!! !hould .e part of the dail, wor1 not an o**a!ional a*ti/it, initiated when thing! get too me!!,0 S+"!?"r?ii!$ &Sei1et!u'
or1 pra*ti*e! !hould .e *on!i!tent and !tandardi4ed0 All wor1 !tation! for aparti*ular )o. !hould .e identi*al0 All emplo,ee! doing the !ame )o. !hould .e a.leto wor1 in an, !tation with the !ame tool! that are in the !ame lo*ation in e/er,!tation0 E/er,one !hould 1now e2a*tl, what hi! or her re!pon!i.ilitie! are foradhering to the fir!t : SJ!0
Ss+"i!i!$ +5% ?is(i6#i!% r s%#,?is(i6#i!% & Shit!u1e'
Maintain and re/iew !tandard!0 On*e the pre/iou! ; SJ! ha/e .een e!ta.li!hedthe,.e*ome the new wa, to operate0 Maintain fo*u! on thi! new wa, and do not allow agradual de*line .a*1 to the old wa,!0 hile thin1ing a.out the new wa,- al!o .e thin1ing a.out ,et .etter wa,!0 hen an i!!ue ari!e! !u*h a! a !ugge!ted impro/ement- a new wa, of wor1ing- a new tool or a new output requirement- re/iew the fir!t ; SJ! and ma1e *hange! a! appropriate0 K"i%! =%Ma!aa1i Imai defined
@ai4en a! Ka mean! of *ontinuing impro/ement in per!onal life- home life- !o*ial life- and wor1ing life0 At the wor1pla*e- @ai4en mean! *ontinuing impro/ement in/ol/ing e/er,one manager! and wor1er! ali1e0 The @ai4en .u!ine!! !trateg, in/ol/e! e/er,one in an organi4ation wor1ing together to ma1e impro/ement! without large *apital in/e!tment!0Mar1 R0 ?amel ha! a !lightl, different0 D%i!i+i!=% @ai4en i! mu*h more than ane/entH it i! a philo!oph,- mind!et and- for
.rea1through performan*e- a mo!t *riti*al/ehi*le to a*hie/e !trategi* imperati/e! and e2e*ute /alue !treampro*e!! impro/ement plan!0 The fi/e main element! of 1ai4en • • •
Teamwor1 0 (er!onal di!*ipline0 Impro/ed morale0
•
ualit, *ir*le0
SOURCES OF DATA PRIMARY, The data needed for thi! !tud, ha! .een deri/ed mainl, from primar,
!our*e the primar, !our*e! of the data in*lude the information pro/ided to me ., the head of a**ount! department- other !enior! in the *ompan, at the time of inter/iew0 An un!tru*tured inter/iew wa! *ondu*ted0
SECONDARY, Se*ondar, !our*e! of data% thi! t,pe of data ha/e .een *olle*ted
from the !e/eral !our*e!- !u*h a!= •
Cariou! quarterl, re/iew of the *ompan,
•
Appli*ation form!
•
Bro*hure!- )ournal!- new!paper et*0
CHAPTER 9 AUTOMOBILE INDUSTRY PROFILE His+ry +5% A+7=i#% I!?s+ry
In the ,ear &68$- a Fren*h engineer ., the name of Ni*ola! 0 +ugnot in/ented the fir!t automo.ile to run on road!0 Thi! automo.ile- in fa*t- wa! a !elf%powered- three% wheeled- militar, tra*tor that made the u!e of a !team engine0 The range of the automo.ile- howe/er- wa! /er, .rief and at the mo!t- it *ould onl, run at a !tret*h for fifteen minute!0 In addition- the!e automo.ile! were not fit for the road! a! the !team engine! made them /er, hea/, and large- and required ample !tarting time0 Oli/er E/an! wa! the fir!t to de!ign a !team engine dri/en automo.ile in the U0S0
A S*ot!man- Ro.ert Ander!on- wa! the fir!t to in/ent an ele*tri* *arriage .etween &>:" and &>:$0 ?owe/er- Thoma! Da/enport of the U0S0A0 and S*ot!man Ro.ert Da/id!on were among!t the fir!t to in/ent more appli*a.le automo.ile!- ma1ing u!e of non%re*hargea.le ele*tri* .atterie! in &>;"0 De/elopment of road! made tra/eling *omforta.le and a! a re!ult- the !hort ranged- ele*tri* .atter, dri/en automo.ile! were no
more
the
.e!t
option
for
tra/eling
o/er
longer
di!tan*e!0
The Automo.ile Indu!tr, finall, *ame of age with ?enr, Ford in &$&; for the .ul1 produ*tion of *ar!0 Thi! lead! to the de/elopment of the indu!tr, and it fir!t .egun in the a!!em.l, line! of the *ar fa*tor,0 The !e/eral method! adopted ., Ford- made the new in/ention that i!- the *ar' popular among!t the ri*h a! well a! the ma!!e!0 A**ording the ?i!tor, of Automo.ile Indu!tr, US- dominated the automo.ile mar1et! around the glo.e with no nota.le *ompetitor!0 ?owe/er- after the end of the Se*ond orld ar in &$;7- the Automo.ile Indu!tr, of other te*hnologi*all, ad/an*ed nation! !u*h a! apan and *ertain European nation! gained momentum and within a /er, !hort period- .eginning in the earl, &$>#!- the U0S Automo.ile Indu!tr, wa! flooded with foreign automo.ile *ompanie!- e!pe*iall, tho!e of apan and erman,0 9. G#="# Tr%!?s
The *urrent trend! of the lo.al Automo.ile Indu!tr, re/eal that in the de/eloped *ountrie! the Automo.ile Indu!trie! are !tagnating a! a re!ult of the drooping *ar mar1et!- wherea! the Automo.ile Indu!tr, in the de/eloping nation!- !u*h a!India and Bra4il- ha/e .een *on!i!tentl, regi!tering higher growth rate! e/er, pa!!ing ,ear for their flouri!hing dome!ti* automo.ile mar1et!0 In 1eeping with the Automo.ile Indu!tr, Trend!- the leading automo.ile manufa*turer! are turning to the A!ian mar1et! that appear !et to grow immen!el, o/er the ne2t de*ade0 The automo.ile mar1et! in the U0S0- Europe and the apan ha/e almo!t matured a! a re!ult of !aturation and appear !et to de*line through the ne2t de*ade0 In *ontra!t- the automo.ile mar1et! !pread o/er the entire A!ian *ontinent with the e2*eption of apan'- are *on!tantl, in*rea!ing in !i4e and will .e the de!tination for mo!t of the glo.all, leading automo.ile manufa*turer!0The rapid growth of the national e*onom, of the BRI+ *ountrie! in*luding Bra4ilRu!!ia- India- and +hina' ha/e ena.led a growing !e*tion of the population of the!e *ountrie! to pur*ha!e automo.ile!0 lo.al !ur/e,! *ondu*ted re*entl, re/eal that within the ne2t ten ,ear!- the!e emerging automo.ile mar1et! will a**ount for nearl, a whooping $# per*ent of the glo.al automo.ile !ale! growth0 A! a re!ult of thi!- leading Automo.ile manufa*turer! of the world are !etting up fa*torie! in the emerging mar1et!- in order to !er/e the potential *on!umer! .etter a! well a! redu*e manufa*turing and !hipping *o!t!0 In addition- the!e arrangement! are ena.ling the leading glo.al automo.ile manufa*turer! to *ompete with the lo*al automo.ile manufa*turer!- whi*h were flouri!hing in the a.!en*e of qualit, *ompetition0 The pro!perit, of the national e*onom, i! refle*ted in the ri!ing per *apita in*ome of the de/eloping nation!0 Therefore- in*rea!ing ro!! Dome!ti* (rodu*t and per *apita in*ome ha/e rai!ed the pur*ha!ing a.ilit, of the population that *on!titute! the!e emerging mar1et!0 In "##6- a total of 6&0$ million new automo.ile! were !old worldwide= ""0$ million in Europe- "&0; million in A!ia%(a*ifi*- &$0; million in North Ameri*a- ;0; million in 3atin Ameri*a- "0; million in the Middle Ea!t and &0; million in Afri*a0
L"
The
mar1et! in North Ameri*a and apan were !tagnant- while tho!e in South Ameri*a and
A!ia grew !trongl,0 Of the ma)or mar1et!- Ru!!ia- Bra4il and +hina !aw the mo!t rapid growth0
U.S. A+7=i#% I!?s+ry
The manufa*turer! of the U.S. A+7=i#% I!?s+ry will ha/e to loo1 to the de/eloping mar1et! around the glo.e- if the, are to regain their Jnumero unoJ po!ition in the orld Automo.ile Indu!tr,- that ha! .een re*entl, ta1en o/er ., the apane!e automo.ile manufa*turer!0 The U0S0 Automo.ile Indu!tr,- whi*h i! mainl, .a!ed upon the *om.ined .u!ine!! of the Detroit Three eneral Motor! +orporation- Ford Motor! +orporation- and +hr,!ler 33+ whi*h i! an unit of Daimler+hr,!ler A- ha! .een !urrendering dome!ti* mar1et !hare to foreign *ompanie! in the automo.ile !e*tor- e!pe*iall, tho!e .elonging to apan0 The dome!ti* mar1et! in the U0S0 .eing almo!t !aturated- the manufa*turer! of the U0S0 Automo.ile Indu!tr, need to mo/e out of North Ameri*a- to the emerging mar1et! where automo.ile !ale! are growing ., leap! and .ound!0
In addition- the produ*tion *o!t! in the U0S0 are mu*h higher in *ompari!on to the re!t of the world- and thi! i! the main rea!on .ehind the U0S0 Automo.ile Indu!tr, manufa*turer! *lo!ing fa*torie!- redu*ing the num.er of emplo,ee! on their pa,roll in the U0S0 it!elf0
Asi"! M"r4%+
The A!ian *ountrie! were al!o regi!tering growth in the demand for new /ehi*le!0 Indone!ia and India !howed !ignifi*ant growth in the regi!tration of new /ehi*le!0 A**ording to the UNIDO whi*h follow! the international !tandard for indu!trial *la!!ifi*ation that *ategori4e! the automo.ile !e*tor a! manufa*ture of motor /ehi*le! .odie! for motor /ehi*le! and manufa*turer! of part! and a**e!!orie! of motor /ehi*le! and their engine!- In the leading de/eloping *ountrie! of A!ia the li!t i! topped ., @orea -Iran0 Bra4il hold! the fifth po!ition followed ., Indone!ia- Tur1e,- Argentina - Thailand Singapore - +hina - Mala,!ia - UAE and +olom.ia0
C5i!" A+7=i#% I!?s+ry
+hina automo.ile indu!tr, *an .e regarded a! one of the large!t growing automo.ile indu!trie! in the world0 The mar1et i! *ontinuall, flouri!hing and a! a *on!equen*eautoma1er! are ha!tening to in/e!t in +hina automo.ile indu!tr,0 A !ur/e, report al!o !how! that in "##"- the *ar !ale! aro!e to 8" with a high profita.ilit,- that i! wh, leading automa1er! li1e ?onda attain highe!t unit margin! in +hina0 The report al!o !how! that .etween "##& to "##7- the annual growth rate of +hinaJ! *ar *on!umption wa! 7;0;"0 In the ,ear "##7- motor /ehi*le produ*tion and !ale! in +hina in*rea!ed ., "60:" and "7 re!pe*ti/el,0 In the ,ear "##8- motor*,*le produ*tion and !ale! in +hina *ro!!ed "& Million Unit! mar10 C5i!" "+7=i#% 7"r4%+ s(%!"ri
The automo.ile produ*tion *o!t in +hina i! higher that in apan- Europe or U0S0 The tariff! are al!o higher than other leading automo.ile manufa*turing *ountrie!0 The in*ome le/el! in +hina !eem to .e *lim.ing and *on!equentl, the potentialit, of automo.ile mar1et i! al!o ri!ing0
J"6"! A+7=i#% I!?s+ry
The J"6"!%s% A+7=i#% I!?s+ry ha! grown *on!tantl, o/er a long time and ha! finall, o/erta1en the U0S0 Automo.ile Indu!tr, a! the num.er one produ*er of automo.ile! in the world0 The Ma)or manufa*turer! of automo.ile! in apan To,ota?onda- Ni!!an- Su4u1i- and Ma4da are al!o among!t the large!t manufa*turer! of automo.ile! in the world0 O/er*oming the ill effe*t! of the defeat in the Se*ond orld ar -that had de!tro,ed the national e*onom,- wa! not an ea!, pro*e!! on the part of the apane!e indu!trie!0 The *ar manufa*turer! .elonging to the apane!e Automo.ile Indu!tr, were *ommi!!ioned to !uppl, arm, tru*1! to South @orea ., the Federal o/ernment of the U0S0 during the @orean ar .etween &$7# and &$7:0 Thi! wa! the main rea!on .ehind the up!wing of the apane!e Automo.ile Indu!tr, that .egan in the &$8#!0
The produ*t! of the apane!e Automo.ile Indu!tr,- that i!- the apane!e automo.ile!are of a !uperior grade and la!t for longer period!- in addition to .eing fuel effi*ient0 The apane!e *ar! are primaril, pri*ed at afforda.le rate! whi*h are *omparati/el,
mu*h lower than the automo.ile! produ*ed ., their foreign *ompetitor! e!pe*iall, tho!e .a!ed in the U0S0 and e!tern Europe0 To,ota ha! re*entl, o/erta1en eneral Motor! of the U0S0 a! the leading produ*er a! well a! !eller of automo.ile! in the world0 The To,ota Motor +orporation i! therefore the .e!t .et of the apane!e Automo.ile Indu!tr,0 And ?onda ha! o/erta1en Ni!!an to .e*ome the !e*ond large!t produ*er of automo.ile! of the apane!e Automo.ile Indu!tr,0 T6 / 7+r v%5i(#% 6r?(i!$ (!+ri%s i! //1:,
+oand Be*i%m Czech $ep%)ic !ra( &%r'ey &haiand !tay y r t n u o C
$%ssia UK "e#ico !ndia Canada Spain Brazi France S. Korea Germany China United States Japan 0
2000
4000
6000
8000
10000
12000
14000
Production(1000 units)
C5"##%!$%s F"(%? =y +5% I!?s+ry:,
The automoti/e indu!tr, toda, i! in the middle of a dramati* and largel, unpre*edented tran!formation0 The
heart of thi!
tran!formation i! not
a.out
how the auto *ompan, doe! it! wor1 .ut rather how it define! it!elf0The glo.al
automoti/e indu!tr, toda, i! deli/ering unpre*edented le/el! of *u!tomer /alue0 Cehi*le! toda, are /a!tl, !uperior to and more relia.le than tho!e produ*ed )u!t a de*ade ago in term! of e*onom,- !afet,- *omfort- fun*tionalit, and performan*e0 Fier*e glo.al *ompetition for *on!umer! i! the prime mo/er .ehind thi! in*rea!e in *u!tomer /alue0 But the automoti/e indu!tr, !tru*ture that ha! endured for eight, ,ear! ma, .e rea*hing the limit of it! potential0 For deli/ering the ne2t !ignifi*ant in*rement of /alue- to automoti/e *on!umer!- while remaining profita.le will require dramati* in*rea!e in produ*ti/it, a*ro!! the /alue *hain0 In "##>- with rapidl, ri!ing oil pri*e!- indu!trie! !u*h a! the automoti/e indu!tr,- are e2perien*ing a *om.ination of pri*ing pre!!ure! from raw material *o!t! and *hange! in *on!umer .u,ing ha.it!0 The indu!tr, i! al!o fa*ing in*rea!ing e2ternal *ompetition from the pu.li* tran!port !e*tor- a! *on!umer! re%e/aluate their pri/ate /ehi*le u!age0 Some of the *hallenge! are a! follow!=% Bu!ine!! tran!a*tion! to !u!tain and grow *ore re/enue! 0 •
+o!t redu*tionperforman*e impro/ement 0
•
Emerging mar1et! 0
•
E2*e!! la.our- produ*tion *apa*it,- in/entor,- and predator, pre!!ure! on margin!0
•
Impro/ing !uppl, *hain effi*ien*, 0
•
Managing retiree health *are *o!t! 0
•
Retail and di!tri.ution performan*e 0 New regulation! a**ounting !tandard!- go/ernment regulation! % e0g0- .lo*1 e2emption reform- IFRS- E3C- +AFE- EU a**e!!ion- +O" regulation!'0
AUTOMOBILE INDUSTRY IN INDIA His+ry O I!?i"! A+7=i#% I!?s+ry:,
Automo.ile! were introdu*ed to India in the late &>$#J!- the manufa*turing indu!tr, onl, too1 off after independen*e in &$;60 The prote*tioni!t e*onomi* poli*ie! of the go/ernment ga/e ri!e in the &$7#J! to the ?indu!tan Motor! Am.a!!ador- .a!ed on a &$7#J! Morri! O2ford- and- i! !till u.iquitou! in the road! and highwa,! of India0 ?indu!tan Motor! and a few !maller manufa*turer! !u*h a! (remier Automo.ile!Tata Motor!- Ba)a) Auto- A!ho1 and Standard Motor! held an oligopol, until IndiaJ! initial e*onomi* opening in the &$>#J!0 Tata Motor! laun*he! it! fir!t tru*1 in *olla.oration with Mer*ede!%Ben40 The great Indian politi*ian San)a, andhi *hampioned the need for a peopleJ! *arH the pro)e*t wa! reali4ed after hi! death with the laun*h of a !tate%owned firm Maruti Ud,og whi*h qui*1l, gained o/er 7# mar1et !hare0 The Maruti >## .e*ame popular .e*au!e of it! low pri*e- high fuel effi*ien*,- relia.ilit, and modern feature! relati/e to it! *ompetition at the time0 Tata Motor! e2ported .u!e! and tru*1! to ni*he mar1et! in the de/eloping world0 The li.erali4ation of &$$& opened the flood gate! of *ompetition and growth whi*h ha/e *ontinued up to toda,0 The high growth in the Indian e*onom, ha! re!ulted in all ma)or international *ar manufa*turer! entering the Indian mar1et0 eneral Motor!Ford- To,ota- ?onda- ?,undai and other! !et up manufa*turing plant!0 Roll! Ro,*eBentle, and Ma,.a*h are e2ample! of the few high end automo.ile manufa*turer! whi*h entered India in the re*ent ,ear!0 The Tata Nano i! at the lower end of the pri*e range *o!ting appro2 USP "-7## and Bugatti Ce,ron at the other with a pri*e tag of o/er USP " million0 IndiaJ! lo/e affair with the automo.ile i! famou!l, em.odied in the &$"#J! Roll! Ro,*e *olle*tion! of the er!twhile mahara)a!0 The growing middle *la!! a!pire! for the automo.ile for it! *on/enien*e and a! a !tatu! !,m.ol0 Upper middle *la!! and wealth, *ar owner! emplo, full%time *hauffeur! to na/igate the aggre!!i/e and !eemingl, lawle!! traffi* pattern! of mo!t *itie!0 The *on!tru*tion of e2pre!!wa,! !u*h a! the Mum.ai (une e2pre!!wa, ha/e opened up new touring opportunitie!0 The
e2pe*ted laun*h of a Formula One *ir*uit in New Delhi i! e2pe*ted to !par1 pu.li* enthu!ia!m for a motor !porting indu!tr,0 Crr%!+ S(%!"ri:,
O/er a period of more than two de*ade! the Indian Automo.ile indu!tr, ha! .een dri/ing it! own growth through pha!e!0India i! one of the large!t automo.ile indu!trie! in A!ia 0 The automo.ile indu!tr, in India i! the tenth large!t in the world with an annual produ*tion of appro2imatel, " million unit!0 A**ording to the UNIDO report - India ha! made it to the top &7 automa1er! of the world and o**upie! the fourth po!ition in the leading de/eloping *ountrie! *ategor, of motor /e*hile manufa*turer! 0 It ha! .e*ome a huge attra*tion for *ar manufa*turer! around the world0L: Though !e/eral ma)or foreign automa1er!- li1e Ford- Su4u1i- M and ?onda ha/e their manufa*turing .a!e! in India- Indian automo.ile mar1et i! dominated ., dome!ti* *ompanie!0 Maruti Su4u1i i! the large!t pa!!enger /ehi*le *ompan,- Tata Motor! i! the large!t *ommer*ial /ehi*le *ompan, while ?ero ?onda i! the large!t motor*,*le *ompan, in India0 Other ma)or Indian automo.ile manufa*turer! in*lude Mahindra 9 Mahindra- A!ho1 3e,land and Ba)a) Auto0 The entr, of Su4u1i +orporation in Indian pa!!enger *ar manufa*turing i! often pointed a! the fir!t !ign of India turning to a mar1et e*onom,0 Sin*e then the automo.ile !e*tor witne!!ed rapid growth ,ear after ,ear0 B, late%$#J! the indu!tr, rea*hed !elf relian*e in engine and *omponent manufa*turing from the !tatu! of large !*ale
importer0
ith *omparati/el, higher rate of e*onomi* growth rate inde2 again!t that of great glo.al power!- India ha! .e*ome a hu. of dome!ti* and e2port! .u!ine!!0 The automo.ile !e*tor ha! .een *ontri.uting it! !hare to the !hining e*onomi* performan*e of India in the re*ent ,ear!0 ith the Indian middle *la!! earning higher per *apita in*ome- more people are read, to own pri/ate /ehi*le! in*luding *ar! and two%wheeler!0 (rodu*t mo/ement! and manned !er/i*e! ha/e .oo!ted in the !ale! of medium and !i4ed *ommer*ial /ehi*le! for pa!!enger and good! tran!port0 Side ., !ide with fre!h /ehi*le !ale! growth- the automoti/e *omponent! !e*tor ha! witne!!ed .ig growth0 The dome!ti* auto *omponent! *on!umption ha! *ro!!ed rupee! $### *rore! and an e2port of one half !i4e of the figure0
TURNOVER Tr!v%r A+7=i#% I!?s+ry //2,/ + //8,/0
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The *umulati/e growth of the (a!!enger Cehi*le! !egment during April % Mar*h "##6 wa! "#06# per*ent0 (a!!enger +ar! grew ., ""0#& per*ent- Utilit, Cehi*le! ., &:0"& per*ent and Multi (urpo!e Cehi*le! ., "70"# per*ent in F5 "##>%#$0 The +ommer*ial Cehi*le! !egment grew ., ::0"> per*ent0 rowth of Medium 9 ?ea/, +ommer*ial Cehi*le! wa! :"0>; per*ent and 3ight +ommer*ial Cehi*le! re*orded a growth of ::0$: per*ent0 Three heeler! !ale! grew ., &"0"" per*ent with !ale! of ood! +arrier! in*rea!ing ., &:07" per*ent and (a!!enger +arrier! ., &&0:: per*ent during April% Mar*h "##6 *ompared to the *orre!ponding period la!t ,ear0 The Two heeler mar1et grew ., &&0;" per*ent during April% Mar*h "##6 o/er the !ame period la!t ,ear0 Motor*,*le! grew ., &"06$ per*ent- S*ooter! grew ., :0;> per*ent and Moped! regi!tered a growth of 80$7 per*ent0 E*6r+s
Automo.ile E2port! regi!tered a growth of "70;: per*ent during April% Mar*h "##6 o/er the !ame period la!t ,ear0 (a!!enger Cehi*le! E2port! grew ., &:0#7 per*ent- +ommer*ial Cehi*le! e2port! in*rea!ed ., ""07> per*ent- Three heeler! e2port! ., >60&6 per*ent and Two heeler! E2port! grew ., #087 per*ent
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The 1e, fa*tor! .ehind the up!wing Sale! in*enti/e!- introdu*tion of new model! a! well a! /ariant! *oupled with ea!, a/aila.ilit, of low *o!t finan*e with *omforta.le repa,ment option! *ontinued to dri/e demand and !ale! of automo.ile! during the fir!t two quarter! of the *urrent ,ear0 The ri!1 of an in*rea!e in the intere!t rate!- the impa*t of dela,ed mon!oon! on rural demand- and in*rea!e in the *o!t! of input! !u*h a! !teel are the 1e, *on*ern! for the pla,er! in the indu!tr,0
A! the pla,er! *ontinue to introdu*e new model! and /ariant!- the *ompetition ma, inten!if, further0 The a.ilit, of the pla,er! to *ontain *o!t! and fo*u! on e2port! will .e *riti*al for the performan*e of their re!pe*ti/e *ompanie!0
The auto *omponent !e*tor ha! al!o po!ted !ignifi*ant growth of "# per *ent in "##:% #;- to a*hie/e a !ale! turno/er of R!0:#-8;# *rore USP 806 .illion'0 Further- there i! a potential for higher growth due to out!our*ing a*ti/itie! ., glo.al automo.ile! giant!0 Toda,- thi! !e*tor ha! emerged a! another !unri!e !e*tor0
Indian Automo.ile Indu!tr, i! growing0 Al!o- the Automo.ile indu!tr, ha! !trong .a*1ward and forward lin1age! and hen*e pro/ide! emplo,ment to a large !e*tion of the population0 Thu! the role of Automo.ile Indu!tr, *annot .e o/erloo1ed in Indian E*onom,0 All 1ind! of /ehi*le! are produ*ed ., the Automo.ile Indu!tr,0 India Automo.ile Indu!tr, in*lude! the manufa*ture of tru*1!- .u!e!- pa!!enger *ar!defen!e /ehi*le!- two%wheeler!- et*0 The indu!tr, *an .e .roadl, di/ided into the +ar manufa*turing- two%wheeler manufa*turing and hea/, /ehi*le manufa*turing unit!0
CHALLENGES
(re!entl, - the indu!tr, ha! to fa*e a lot of pre!!ure due to in*rea!ing inflation 0 The in*rea!ing inflation ma, affe*t the ea!il, a/aila.le finan*e for the pur*ha!e of /ehi*le! whi*h *an de*rea!e the pur*ha!ing power parit, ((('of *u!tomer! and hen*e the mar1et0 The hi1ing inflation al!o in*rea!e the *o!t of input! whi*h in turn in*rea!e the *o!t the produ*t! 0 !o- the!e are the *hallenge! whi*h the automo.ile mar1et i! *urrentl, fa*ing0 F+r% S(%!"ri
The Indian automo.ile indu!tr, i! going through a pha!e of rapid *hange and high growth0 ith new pro)e*t! *oming up on a regular .a!i!- the indu!tr, i! undergoing te*hnologi*al *hange0 India i! e2pe*ted to o/erta1e +hina a! the worldJ! fa!te!t growing *ar mar1etL& in term! of the num.er of unit! !old and the automoti/e indu!tr, i! one of the fa!te!t growing manufa*turing !e*tor! in India0L" Be*au!e of it! large mar1et India ha! a population of &0& .illionH the !e*ond large!t in the world'- a low .a!e of *ar owner!hip and a !urging e*onom,0 At pre!ent the indu!tr, i! en)o,ing a growth rate of &;%&6 per annum- with dome!ti* !ale! growth at &"0>0 The growth rate i! predi*ted to dou.le ., "#&70The total !ale! of pa!!enger /ehi*le! % *ar!- utilit, /ehi*le! and multi%utilit, /ehi*le! % in the ,ear "##7 rea*hed the mar1 of &0#8 million0 The *urrent growth rate indi*ate! that ., "#&" India will o/erta1e erman, and apan in !ale! /olume!0 In the .eginning of the ,ear "##> the indu!tr, had fa*ed a !low down - .ut the !lowdown in the indu!trial wa! a !hort term phenomenon and the *ountr, i! e2pe*ted to re*ord a growth in indu!trial produ*tion during "##>%"##$ a! again!t of >0: in the pre/iou! fi!*al -+entre for Monitoring Indian E*onom,+MIE'0
M">r M"!"(+r%rs i! A+7=i#% I!?s+ry:,
The ma)or +ar manufa*turer are ?indu!tan Motor!- Maruti Ud,og- Fiat India (ri/ate 3td0- Ford India 3td 0- eneral Motor! India (/t0 3td0- ?onda Siel +ar! India 3td0?,undai Motor! India 3td0- S1oda India (ri/ate 3td0- To,ota @irlo!1ar Motor 3td0- to name a few0The two%wheeler manufa*turing i! dominated ., *ompanie! li1e TCS-
?onda Motor*,*le 9 S*ooter India (/t0' 3td0- ?ero ?onda- 5amaha- Ba)a)- et*0 The hea/, motor! li1e .u!e!- tru*1!- defen!e /ehi*le!- auto ri*1!haw! and other multi% utilit, /ehi*le! are manufa*tured ., Tata%Tel*o- A!ho1 3e,land- Ei*her Motor!- Ba)a)Mahindra and Mahindra- et*0
CHAPTER COMPANY PROFILE
RICO AUTO INDUSTRIES LTD
R
R%#i"=i#i+y
I
I!!v"+i!
C
C76%+i+iv%!%ss + $ G#="#
O
O6+i7i"+i! S("r(% R%sr(%s
Visi! ) G"# Visi!s
To .e the preferred !upplier to Original Equipment Manufa*ture! a*ro!! the glo.e0 G"# - --
“To .e a US P & .illion Enterpri!e ., "#&&Q
C76"!y Pri#% "!? His+ry
RI+O AUTO i! a d,nami* world *la!! engineering *ompan, !uppl,ing a .road range of high pre*i!ion full, ma*hined ferrou! and aluminium *omponent! and a!!em.lie! to automoti/e OEM
RI+O roup i! to .e defined a! a *orporate in *ommer*ial- organi4ational- and te*hni*al term!- whi*h i! a !elf *ontained unit in the S,!tem with it! own ma!ter data and pro*e!!e!0
THE EARLY YEARS
RI+O roup wa! founded in the ,ear &$66 with a ferrou! foundr, and a ma*hining !hop at 3udhiana under the pre!ent *ompan, name RI+O +a!ting! 3td0 In &$>;-
RI+O di/er!ifie! into Aluminum high pre!!ure Die +a!ting ., !etting up it! plant at Dharuhera under the *ompan, RI+O AUTO INDUSTRIES 3TD0 In &$$"-RI+O AUTO !tarted it! plant at Dharuhera0 B, in!talling Automati* ?igh (re!!ure Moulding Ferrou! Foundr, and Ma*hining !hop0 Su.!equentl, the Aluminum ?igh (re!!ure Die *a!ting and Ma*hining fa*ilit, at urgaon- Ri*o !oft te*h 3TD urgaonRI+O AUTO INDUSTRIES In* USAH RI+O AUTO INDUSTRIES U@' 3TD- U@ were added to it! fold in the ,ear "##&- "##&- "##& 9 "##; re!pe*ti/el,0
RICO Gr6 C76"!i%s
A**ount Management- 3ogi!ti*! 9 arehou!ing- A!!em.l, Operation!
•
Mi*higan USA
•
3ondon U@
M"!"(+ri!$ F"(i#i+i%s i! I!?i" •
RI+O Dharuhera' Aluminium Die +a!ting 9 Ma*hining
•
RI+O urgaon' Aluminium G Ferrou! G Die! 9 Mould!- R9D- Te!ting 9 Calidation- +AD +AM +AE
•
oint Centure F++ RI+O Mane!ar' +lut*he!
•
roup +ompan, R+3 3udhiana' Ferrou! +a!ting 9 Ma*hining 3ow Colume )
•
roup +ompan, R+3 Mane!ar' Aluminum +a!ting 9 Ma*hining Small to Medium Si4e (art!'
•
•
oint Centure F++ Ri*o +ha1an (une' G (lanning New (lant RI+O (une' New (lant RI+O e!t Bengal' o
New (lant RI+O +hennai'
TURNOVER
RICO Gr6s Tr!v%r -/ Ti7%s Ov%r L"s+ -/ Y%"rs
From &$$6 to "##>'
Gross turnover US $ million ,-0 ,10 ,00
282-0
2-0 220 200 16 1-0 114 100
12-
80 -8
-0 21
28
,4
0
RICO A+ I!?s+ri%s Ji!+ V%!+r%s ) S=si?i"ri%s
FCC RICO
50% FCC 50% RICO
C#+(5 Ass%7=#y T W5%%#%rs ) Fr W5%%#%rs
CONTINENTAL RICO / CONTINENTAL
?,drauli* Bra1e
/ RICO
(rodu*t! 9 Ser/i*e!
Cehi*le! of all +la!!e! MAGNA
P%r
RICO
+r"i! /
MAGNA
P%r Oil (ump
+r"i!
ater (ump
/ RICO
Automoti/e Engine!' India 9 Europe
RICO JINFEI
RICO USA ) UK
1. JINFEI
Aluminum Allo, heel!
0. RICO
Two heeler!
holl, Owned
A!!em.l,- 3ogi!ti*!
Su.!idiar,
+u!tomer Support
# RI+ORI+O
M"!"(+ri!$ ) E!$i!%%ri!$ C"6"=i#i+i%s
In the Aluminium di/i!ion- the RI+O AUTO INDUSTRIES 3TD0 ha! *ontinued to e!ta.li!h it! leader!hip in the high pre!!ure die *a!ting ?(D+'0 Toda, it i! one of the large!t ?(D+ *ompanie! with 68 ?(D+ ma*hine! from &:7 tn! to &>## tn! lo*1ing for*e'0 It! effort! for de/eloping *omple2 and intri*ate *omponent! li1e high%pre!!ure die *a!t +,linder Blo*1- along with it! te*hnolog, pro/ider Te1!id Aluminium are on tra*10 During the ,ear "##8%#6 it !tarted implementation of low pre!!ure and gra/it, *a!ting pro*e!!e! and *ommen*ed wor1ing on +,linder ?ead! and Allo, heel!0
In the Ferrou! di/i!ion it ha! ; moulding line!0 During the ,ear "##8%#6 it !u**e!!full, laun*hed Ferrou! +,linder
Blo*1! for Maruti Su4u1i0 It al!o !tarted
!upplie! of *omple2 tur.ine *enter hou!ing for ?one,well and laun*hed new metallurgie! u!ed for higher temperature appli*ation!0 It ha! !et up *a!ting *apa*it, in ad/an*e and i! wor1ing toward! .ringing /alue *reating .u!ine!! for the !ame0
PRODUCT RANGE
Following are the ma)or *omponent!- whi*h are manufa*tured in RI+O AUTO INDUSTRIES 3TD0= %
Fr M+r(y(#% P"r+s
••
?UB A!!em.l,
••
Flange A!!em.l,
••
?UB Front
••
(anel A!!em.l,
••
?UB Rear
••
Rotor Oil Filter
••
+lut*h A!!em.l,
••
ear Shift Drum
Fr C"r P"r+s
•
Oil (ump A!!em.l,
•
+a!e Di!tri.utor
•
Ro*1er Arm
•
Brea1 Drum
•
Manifold
CURRENT GLOBAL CUSTOMERS T W5%%#%rs
•
•
•
P"ss%!$%r C"rs
•
•
•
•
•
C77%r(i"# V%5i(#%s
•
•
•
•
•
•
Sys+%7 S66#i%rs
•
•
BUSINESS AND MARKETING STRATEGIES
•
To re*ei/e order from different automo.ile *armotor*,*le *ompanie!0
•
No retail !ale mar1eting ., *ompan, and !pare part! al!o !uppl, to !pare part! di/i!ion of herohonda and maruti udhog et*0 GOVERNMENT POLICIES RELATED TO BUSINESS:,
•
3egal requirement a! per law0
•
Regi!tration with all go/ernment department! for legal o.ligation! li1e% e2*i!e!aleta2- pollution- la.our department et*0
•
Benefit poli*, ., the go/ernment li1e% !aleta2 e2emption ., the go/ernmentta2 in*enti/e !*hme!- e2*i!e dut, e2emption et*0
TA< ASPECTS:
In
*a!e
of
manufa*turer
*on*e!!ion rate of
OEM orignal equipment manufa*turer'
*ompan,
ta2 *harged ., the *ompan, again!t ta2 re.ate! u!ed .,
the firm! li1e% +%FORM- D%FORM in har,ana0 Or$"!is"+i!"# S+r(+r%
E/er, organi4ation ha! a !tru*ture of it! own a**ording to it! need and requirement!0 RI+O al!o ha! it! own organi4ational !tru*ture whi*h ha! .een de!*ri.ed .elow=% Fi!"!(% D%6"r+7%!+
It i! *on*erned with effi*ient planning and *ontrolling of finan*ial- affair! of enterpri!e0 Finan*e !e*tion maintain! all t,pe! of a**ount!- all pa,ment! and re*eipt! are dealt in thi! !e*tion 0In the RI+O the finan*e department i! di/ided into two part! Finan*e !e*tion and E2*i!e !e*tion0
Pr(5"s% D%6"r+7%!+
In RI+O pur*ha!e department i! pla,ing ma)or and 1e, role0 +entrali4ed pur*ha!e !,!tem ha! .een adopted ., it! pur*ha!e department0 (ur*ha!e department i! *on*erned with the pur*ha!e Raw material!- ma*hinerie!- and !tationar, and other .ought part! required in the *ompan,0
Pr?(+i! D%6"r+7%!+
The fun*tion of produ*tion department i! to effe*ti/el, plan and regulate the operation! of that part of an organi4ation whi*h i! re!pon!i.le for the a*tual tran!formation of material! into fini!hed produ*t!0
In Ri*o- the produ*tion a*ti/it, i! loo1ed after ., the Engineer! whi*h dire*tl, report! to the *hief engineer0 The raw material u!ed ., the Ri*o i! aluminium and other /ariou! .ought part!0 The produ*tion department i! *la!!ified into /ariou! department! !u*h a!= •
Die *a!ting0
•
Fettling0
•
Ma*hining0
•
A!!em.ling0
•
(rodu*tion planning and *ontrol0 H7"! R%sr(% D%v%#67%!+ D%6"r+7%!+:,
The prin*ipal *omponent of an organi4ation i! it! ?uman Re!our*e 0 Moti/ated wor1for*e i! the mo!t /alua.le a!!et of an organi4ation0 Same i! the philo!oph, at RI+O0 Endea/or to under!tand it! people their )o.!- their attitude toward! the organi4ational pro.lem! and lo,altie! i! the !heer *on*ern of it! per!onal poli*ie!0 @"#i+y
ualit, i! the department whi*h i! re!pon!i.le for maintaining the qualit, of the produ*t0 Thi! department thoroughl, *he*1! the qualit, of the material whether it i! a raw material- .ought out part- good! in pro*e!! or the final produ*t0
SWOT ANALYSIS OF RICO AUTO INDUSTRIES LTD.
STRENGTHS
•
Inno/ation0
•
Optimum utili4ation of !*are re!our*e!0
•
Adapta.ilit, in relation to *hanging en/ironment0
•
Spe*iali4ation ph,!i*al a!!et! ., pro/iding training and de/elopment program0
•
Future /i!ionar,0
•
(erfe*tion in wor1 through *ooperation and *oordination within group or department a! *om.ined team0
•
rowth and di/er!ifi*ation and e2pan!ion of unit! through glo.ali4ation
•
Ami*a.le relation!hip with the !hareholder0
•
Regular dealing with the *u!tomer! *reate! a !trong .onding0
•
Effe*ti/e and effi*ient wor1ing of top and middle management through in*orporation of SA( Software0
•
+ertifi*ate honored ., orldwide Organi4ation for- orld *la!! qualit,% ISO TS&8$;$- ISO &;##&- Total (rodu*ti/e Maintenan*e- Si2 Sigma0 At Ri*o- it! people ha/e alwa,! .een it! mo!t /alua.le re!our*e0 It !upport! it! people with *ontinuou! training and edu*ation fa*ilitie!0There are ;&"$ emplo,ee! in*luding &7&7 *ontra*tual emplo,ee! in the *ompan, a! on :&!t Mar*h "##$0 RI+O
WEAKNESSES:,
•
+omputation in *urren*, in relation to other e*onomie! of world0
•
Determining the le/el of material minimum and ma2imum le/el!'0 Due to minimum le/el of material whi*h lead! to hurdle in produ*tion0 ma2imum le/el of material the fund! are .eing .lo*1ed0
On other hand- due to
•
Same 1ind of material *ode! a!!igned to different material t,pe! RO? and ?A3B' due to whi*h /aluation of material *o!t i! .eing effe*t
OPPORTUNITES:,
•
The *ompan, !ee! opportunitie! .oth in the dome!ti* mar1et! and o/er!ea! mar1et! with e2i!ting and new *u!tomer!0 To full, e2plore opportunitie! with all *u!tomer!- the *ompan, ha! de/eloped dedi*ated a**ount team! to fo*u! on ea*h *u!tomer0 The *ompan, ha! al!o ta1en !tep! to e2pand at /ariou! lo*ation! in India *lo!e to it! new *u!tomer! plant!0
•
The +ompan, i! implementing a !trategi* plan to .uild glo.al !*ale and *apa.ilitie! to meet the requirement of it! e2i!ting a! well a! it! new *u!tomer!0 In the ,ear "##8%#6
two oint Centure! ha/e .een !igned- one with *ontinental A of
erman, for ?,drauli* Bra1e S,!tem! and other with infei of +hina for Aluminum Allo, heel!- whi*h would *ontri.ute toward! growth 9 profita.ilit, of the *ompan, in the *oming ,ear!0 •
On the e2port front the +ompan, ha! ta1en initiati/e! to de/elop new e2port mar1et! for it! produ*t! and !er/i*e!0
THREATS
•
The ri!ing rate of intere!t i! a matter of *on*ern a! it impa*t! the automoti/e demand for /ehi*le! two wheeler! and pa!!enger *ar!' and al!o the *o!t !tru*ture of auto *omponent manufa*turer!0
•
A/aila.ilit, and *o!t of power i! another area of *on*ern for the indu!tr, 0The *ompan, ha! .een ta1ing !tep! in thi! regard to impro/e .oth the a/aila.ilit, and *o!t of power0
•
Ri!ing input *o!t! and /olatilit, in material i! a *hallenge that impa*t! margin!0 The +ompan, i! pur!uing appropriate inde2ation me*hani!m! with it! *u!tomer!- howe/er there i! alwa,! a lag effe*t0
•
The Indian Rupee appre*iation /i!%%/i! the US P i! an area of *on*ern for e2port!0 Thi! impa*t! margin for e2port re/enue!
•
+hina *ontinue! to .e a *hallenge at a glo.al le/el on a**ount of it! pri*e!0
•
The +ompan, i! e2po!ed to !trong *ompetiti/e pre!!ure! .oth dome!ti* and o/er!ea!0
•
The +ompan, i! al!o e2po!ed to finan*ial ri!1 from *hange! in intere!t rate!foreign e2*hange rate!- and *ommodit, pri*e
@UOTATION PUCHAS E ORDER
MATERIAL RE@UIREMENT INSPECTION REPORT
GATE ENTRY
DELIVERY OF GOODS
GOODS RECEIPT NOT OK
O@
@UALITY REJECTION
NRGP
STORING GOODS
DIS(AT+? TO CENDOR
GOODS ISSUED
PRODUCTION
CENVAT SETOFF
FINA3 (RODU+T
PRE DISPATCH INSPECTION OF GOODS INVOICE VERIFICATION DISPATCH OF GOODS
PAYMENT TO VENDORS
GOODS SENT TO CUSTOMER
PAYMENT RECEIVED FROM CUSTOME R
S+r"$% L("+i!
Thi! i! the !malle!t organi4ational unit in material management where !to*1! are /i!i.le and are managed0 There are different t,pe! of !torage lo*ation 0
S0No0 &
Name of Store Main Store
Material! that are Stored All the item! In*luding RM- BO(- (ro)e*t-
"
Fini!h ood! Store
+on!uma.le et*0 are !tored Fini!hed material are 1ept in the !ame
:
Re)e*tion Store
All t,pe! of re)e*tion! are 1ept in the !ame
;
Under In!pe*tion Store
Material !tored whi*h are under In!pe*tion
7
S*rap Store
Store! for handling wa!te material!
Different t,pe! of !torage lo*ation in RI+O D?ARU?ERA (3ANT
SN
Storage
Name of Storage 3o*ation
3o*ation D(O5
Open 5ard 3o*ation Dharuhera Oil 9 3u.ri*ant!- fuel et*0
& "
Material that are Stored
D(D+ D(MS
Main Store%Dharuhera D(D+
All other! e2*ept defined in the *hart
:
D(DO
DO3
item!
Store%Dharuhera Item! whi*h doe! not required
D(D+ ;
D(RS
Re)e*tion D(D+
ualit, In!pe*tion i0e0 Bearing!Store
Spro*1et!- !eal! et*0 %Dharuhera All t,pe! of re)e*tion! are to .e 1ept in the !ame
7
D(F
Fini!hed
ood!
Store Fini!hed material to .e 1ept in the
%Dharuhera D(D+ 8
D(NM
!ame
Non Mo/ing 9 O.!olete item Non Mo/ing 9 O.!olete Other Store Dharuhera D(D+
6
D(S
than Spare!'
ualit, Rewor1 9 Segregation' Under Rewor1 Material to 1ept in Store % Dharuhera D(D+
>
D((+
the !ame
(ro)e*t 9 +apital item Store Item whi*h i! related to wor1 Dharuhera D(D+
order(ro)e*t+apital are to .e 1ept in the !ame Material whi*h i! to .e !*rapped
$
D(S5
S*rap 5ard Dharuhera D(D+
D(MM
Maintenan*e
item
Store
Dharuhera D(D+ &&
D(EM
Maintenan*e
item
Dharuhera D(D+
Maint0Spare!
to
re!pon!i.ilit, Store
Deptt0' Maint0Spare! re!pon!i.ilit,
.e
!tored
Maintenan*e to
.e
!tored
Maintenan*e
Deptt0'
PRODUCTION
(rodu*tion ma, .e defined a! the *on/er!ion of input! men- ma*hine- material!- mone,method! and management into output through tran!formation pro*e!!00 Output ma, .e a good! or !er/i*e rendered0
MEN MATERIAL, iiiiiiiiiiIIIIIIIIIIIIIIIIII METHOD, MACHINE MONEY MANAGEMENT
IN(UT
IN(UT
MELTING DIE CASTING M/C PROCESSING
(RO+ESSIN
FETTLING MACHINING PAINTING
ASSEMBLING OUTPUT
OUT(UT
FINAL PRODUCT
In RI+O AUTO INDUSTRIES 3TD0 The !pare! part! are produ*ed ., pro*e!!ing the /ariou! input! ., the pro*e!!%
M%#+i!$ "#7i!7
Melting i! the ma)or fa*tor whi*h *ontrol! the qualit, of the *a!ting!0 Metal! ma, .e melted in /ariou! t,pe! of furna*e! !u*h a! open hearth furna*e - ele*tri* ar* furna*e rotar, furna*e -*upola furna*e et*0 0The *hoi*e of metal depend! on the 1ind of metal qualit, of metal to .e melted et*0 Furna*e are *on!tru*ted !o that raw material and fuel
and air if needed ma, enter and produ*t ma, lea/e 0 there !hould .e !ome mean! for maintaining temperature and *hemi!tr, *ontrol of metal0The aluminum ore i! melted at the temperature of a.out $##% ##**- whi*h i! then tran!ferred to the *a!ting ma*hine0
C"s+i!$
Metal *a!ting pro*e!! *on!i!t of ma1ing mould! - preparing and melting the metal pouring liquid metal into the mould! and then allowing it to !olidif,0 hen !olidified the metal will ta1e the !hape of *a/it,0 It i! then ta1en out from the mould0 The !olidified o.)e*t i! *alled *a!ting0 F%++#i!$
After .rea1ing the mould when *a!ting i! remo/ed from mould H !and - unwanted pro)e*tion!- ri!er! et*0 are adhering at it! !urfa*e0 Fettling i! the pro*e!! of *leaning and fini!hing *a!ting0 M"(5i!i!$
In the ma*hining the fini!hing tou*h i! gi/en to the *a!ting! !o a! to ma1e it proper for u!e li1e ma1ing hole! for the !*rew! et*0 P"i!+i!$
After ma*hining the *a!ting! are read, 0The, are then painted in the paint !hop0 Ass%7=#i!$
The a!!em.l, of *omponent i! done after the *omponent! are painted and the final produ*t i! read, 00
CHAPTER,9 RESULTS ) DISCUSSION
RESULTS:,
S((%ss# D%v%#67%!+ O T5% P"r+:
In the final we getting the re!ult of the!u**e!!ful de/elopment of the part0 The part *an .e de/eloped a**ording to it! profile whi*hi! pro/ided ., the *ompan, to the engineer!0 A**ording to it! !tru*ture a die *an .e u!ed forthe manufa*turing of the part0 For the manufa*turing of the different part! different die! *an.e u!ed whi*h are a**ording to the !hape of the part0 The die i! loaded on the M0B0 and M0B0*an .e pla*ed in!ide the pre!! a! the lower unit and a upper portion of the die *an .e atta*hedto the upper M0B0 with the help of !tud!0 hen the die i! loaded then the *omplete automati*pro*e!! of the pre!! !tart! and the pre!!ure !tart! *reating in the *,linder! whi*h are atta*hedat the top portion of the pre!!0 hen the pre!!ure *omplete! then the upper die *omplete! it!!tro1e and the !ingle% !ingle operation! *an .e *ompleted on different pre!!e!0 The pre!!e!u!ed for the!e different operation! are of different pre!!ure! the pre!! u!ed for the drawingoperation i! of >## Tone! and the pre!!e! u!ed for the remaining operation! are of ;## Tone!that mean! the upper die !tri1e! on the lower one with that pre!!ure0 The damp! produ*ed inthe pre!! ., thi! !tri1e are a.!or.ed ., the damping unit whi*h i! under the *u!hion .ed0 The M0B0 i! pla*ed on the *u!hion .ed and the damp! *an .e a.!or.ed ., the damping unit0 After the e/er, operation *omplete the part !end! to the welding !hop where the nut and .olt! are atta*hed to the part a**ording to the *on!tru*tional detail of the part with the help of the !pot welding and at la!t the part i! *he*1ed ., the qualit, *he*1er! and read, for deli/er,0 So thi! i! the !u**e!!ful de/elopment of the part0
G%+ T5% C5"!(% T G"i! T5% K!#%?$%:
After wat*hing the *omplete phenomenon of manufa*turing of part we are a.le to getting the 1nowledge a.out the different pre!! operation !u*h a! drawing- trimming- re !tri1ing and pun*hing0 The different part of the die wor1! in a different manner and the!e are automati*all, done !o after wat*hing the!e operation! we are a.le to get the 1nowledge of different pre!! operation!
After the different pre!! phenomenon the different welding operation! areperformed on it0 The welding operation i! u!ed i! the Spot elding operation in whi*h !potwelding *an .e done in different two wa,!=
i' ii'
I0T0 un Non I0T0
un The!e are the two welding operation whi*h are u!ed for the !pot welding !o we get the 1nowledge a.out the different !pot welding te*hnique! and ma*hine! whi*h are u!ed for !pot welding0 B, wat*hing thi! *omplete we are a.le to get the 1nowledge of the different pro*e!!e! that *an .e u!ed in the fa*tor, for the manufa*turing of different part!0 So after getting the *omplete training we get the 1nowledge of different pro*e!!e!0 DISCUSSIONS:,
Defe*t! (rodu*ed In Sheet: During di!*u!!ion we di!*u!! a.out the pro.lem fa*ing during the manufa*turing pro*e!! of the different part!0 Ba!i*all, the main pro.lem *an .e fa*ed i! of different defe*t! produ*ed during the manufa*turing phenomenon0 The different defe*t! produ*ed are= i' ii' iii' i/' /'
rin1le O/erlapping +ra*1 Deformation Dent0
The!e are the main pro.lem! that are fa*ed during the manufa*turing pro*e!! of part0 The!e defe*t! *an .e di!*u!!ed during the training0
C5"6+%r,8 CONCLUSION
we are di!*u!!ed to !ol/e the pro.lem! produ*ed during the wor1ing *onditionof the pre!! and manufa*turing of the part!0 To !ol/e the defe*t! produ*ed on the !urfa*e of the !heet during different pre!! operation! different pro*e!!e! *an .e u!ed if the damage i!!mall and it *an ea!il, .e repaired then it *an .e ma*hined and repaired it .ut if the defe*t i!not .e a.le to *orre*t then the !heet *an .e thrown into the !*rap0 If the pro.lem!