68326760-Project-Report-on-Totota-Kirloskar-Motor.doc

8/13/2019 68326760-Project-Report-on-Totota-Kirloskar-Motor.doc

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Toyota Kirloskar Motor

INTRODUCTION TO STUDY

As a joint venture between the Kirloskar Group and Toyota Motor Corporation, Toyota Kirloskar

Motor Private Limited (TKM aims to play a major role in the development o! the automotive

industry and the "reation o! employment opportunities, not only throu#h its dealer network, but also

throu#h an"illary industries$

TKM%s #rowth sin"e in"eption "an be attributed to one simple, yet important aspe"t o! its business

philosophy &"Customer First"$ 'hile mana#in# #rowth, TKM has maintained its "ommitment to

provide uality produ"ts at a reasonable pri"e and has made every e!!ort to meet "han#es in "ustomer

needs$

TKM !irmly believes that the su""ess o! this venture depends on providin# hi#h uality produ"ts and

servi"es to all valued "ustomers throu#h the e!!orts o! its team members$

TKM, alon# with its dedi"ated dealers and suppliers, has adopted the )Growin# To#ether)

philosophy o! its parent "ompany TMC to "reate lon#&term business #rowth$ *n this way, TKM aims

to !urther "ontribute to pro#ress in the *ndian automotive industry, realise #reater employment

opportunities !or lo"al "iti+ens, improve the uality o! li!e o! the team members and promote robust

e"onomi" a"tivity in *ndia$


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STUDY DETAILS

-./CT*0/1 2 T3/ 1T456

To identi!y the or#ani+ational "ulture and stru"ture o! Toyota Kirloskar Motor, -idadi

To study the various departments and their !un"tions$

To study about the various produ"ts and servi"es o!!ered by the "ompany$

To study the day to day a"tivities o! Toyota Kirloskar Motor$

To make a 1'T analysis o! this or#ani+ation to understand and su##est measures toover"ome the weaknesses and threats within the s"ope o! this study$

1CP/ 2 T3/ 1T456

4se!ul !or a"ademi" purpose and !urther re!eren"e$

Provides in!ormation about the !un"tionin# o! the Automobile industry in *ndia$

L*M*TAT*71

Time was a limitin# !a"tor durin# the study$

1ome "ore data "ould not be "olle"ted due to "on!identiality poli"ies o! the "ompany$


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INDUSTRY PROFILE

The automotive industry desi#ns, develops, manu!a"tures, markets, and sells the world%s motor

vehi"les$ *n 89:; estimated rate o! #rowth o! *ndia auto industry is #oin# to be :9 per"ent$ Auto

industry in *ndia has been hit hard by on#oin# #lobal !inan"ial re"ession$ 1ales !i#ures o! *ndia

automobile industry !or 5e"ember 899< have shown devastatin# a!ter e!!e"ts o! #lobal !inan"ial

slowdown$ *n 899


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AUTOMOTIE INDUSTRY IN INDIA

The Automoti!e i#ustryin *ndiais one o! the lar#est in the world and one o! the !astest #rowin#

#lobally$ *ndia manu!a"tures over :=$; million vehi"les (in"ludin# 8 wheeled and @ wheeled and

eDports about 8$EE million every year$ *t is the world%s se"ond lar#est manu!a"turer o! motor"y"les,

with annual sales eD"eedin# $ *ndia%s passen#er "ar and "ommer"ial vehi"le

manu!a"turin# industry is the seventh lar#est in the world, with an annual produ"tion o! more than

E$= million units in 89:9$ A""ordin# to re"ent reports, *ndia is set to overtake -ra+il to be"ome thesiDth lar#est passen#er vehi"le produ"er in the world, #rowin# :B&:< per "ent to sell around three

million units in the "ourse o! 89::&:8$ *n 899>, *ndia emer#ed as Asia%s !ourth lar#est eDporter

o!passen#er "ars, behind .apan,1outh Korea, and Thailand$

As o! 89:9, *ndia is home to @9 million passen#er vehi"les and more than E$= million automotive

vehi"les were produ"ed in *ndia in 89:9 (an in"rease o! EE$>F, makin# the "ountry the se"ond

!astest #rowin# automobile market in the world$ A""ordin# to the 1o"iety o! *ndian Automobile

Manu!a"turers, annual "ar sales are proje"ted to in"rease up to ; million vehi"les by 89:; and more

than > million by 8989$ -y 89;9, the "ountry is eDpe"ted to top the world in "ar volumes with

approDimately B:: million vehi"les on the nation%s roads$

A "hunk o! *ndia%s "ar manu!a"turin# industry is based in and around Chennai, also known as the

)Detroitof India) with the *ndia operations o! 2ord, 3yundai, enaultand7issanheaduartered in

the "ity and -M'havin# an assembly plant on the outskirts$ Chennai a""ounts !or B9 per "ent o! the

"ountry%s automotive eDports$ Gur#aonand Manesar in 3aryanaare hubs where all o! theMaruti

1u+uki"ars in *ndia are manu!a"tured$ The Chaka "orridor near Pune, Maharashtrais another

vehi"ular produ"tion hub with "ompanies like General Motors,0olkswa#en,1koda,Mahindra and

Mahindra, Tata Motors,Mer"edes -en+,Land over, 2iatand 2or"e Motorshavin# assembly plants

in the area$ Ahmedabadwith the Tata 7anoplant

General Motors, Auran#abadwith Audi, 1kodaand0olkswa#en,Kolkattawith 3industan

Motors,7oidawith3ondaand -an#alorewithToyotaare some o! the other automotive

manu!a"turin# re#ions around the "ountry$
http://en.wikipedia.org/wiki/Automotive_industry_in_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Indian_Road_Networkhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Detroithttp://en.wikipedia.org/wiki/Renault_India_Private_Limitedhttp://en.wikipedia.org/wiki/Nissan_Motor_India_Private_Limitedhttp://en.wikipedia.org/wiki/BMW_India_Private_Limitedhttp://en.wikipedia.org/wiki/BMW_India_Private_Limitedhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/General_Motors_India_Private_Limitedhttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mercedes-Benz_Indiahttp://en.wikipedia.org/wiki/Mercedes-Benz_Indiahttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Fiat_Automobiles_India_Limitedhttp://en.wikipedia.org/wiki/Force_Motorshttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/General_Motors_India_Private_Limitedhttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Audi_Indiahttp://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/Kolkattahttp://en.wikipedia.org/wiki/Kolkattahttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Honda_Siel_Cars_Indiahttp://en.wikipedia.org/wiki/Honda_Siel_Cars_Indiahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Toyota_Kirloskar_Motor_Private_Limitedhttp://en.wikipedia.org/wiki/Toyota_Kirloskar_Motor_Private_Limitedhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Indian_Road_Networkhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Detroithttp://en.wikipedia.org/wiki/Renault_India_Private_Limitedhttp://en.wikipedia.org/wiki/Nissan_Motor_India_Private_Limitedhttp://en.wikipedia.org/wiki/BMW_India_Private_Limitedhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/General_Motors_India_Private_Limitedhttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mercedes-Benz_Indiahttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Fiat_Automobiles_India_Limitedhttp://en.wikipedia.org/wiki/Force_Motorshttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/General_Motors_India_Private_Limitedhttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Audi_Indiahttp://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/Kolkattahttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Honda_Siel_Cars_Indiahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Toyota_Kirloskar_Motor_Private_Limitedhttp://en.wikipedia.org/wiki/Automotive_industry_in_India


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COMPANY PROFILE

$ISTORY OF TOYOTA

Towards the end o! the nineteenth "entury, 1aki"hi Toyoda invented .apan%s !irst power loom and in

the pro"ess revolutionised the "ountry%s teDtile industry$ .anuary :>:< saw him "reate the Toyoda

1pinnin# and 'eavin# Company, and with the help o! his son, Kii"hiro Toyoda, 1aki"hi !ul!illed his

li!elon# dream o! buildin# an automati" loom in :>8@$ The establishment o! Toyoda Automati"

Loom 'orks !ollowed in :>8B$

Kii"hiro was also an innovator, and the visits he made to /urope and the 41A in the :>89s

introdu"ed him to the automotive industry$ 'ith the :99,999 that 1aki"hi Toyoda re"eived !or

sellin# the patent ri#hts o! his automati" loom, Kii"hiro laid the !oundations o! Toyota Motor

Corporation, whi"h was established in :>E=$

ne o! the #reatest le#a"ies le!t by Kii"hiro Toyoda, apart !rom TMC itsel!, is the H Toyota

Produ"tion 1ystemI (TP1 and Kii"hiro%s )just& in&time) (.*T philosophy &produ"in# only pre"ise

uantities o! already ordered items with the absolute minimum o! waste vi+$ a key !a"tor in the


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system%s development$ Pro#ressively, the JToyota Produ"tion 1ystem be#an to be adopted by the

automotive industry a"ross the world$

isin# !rom the ashes o! industrial upheaval in post&war .apan, Toyota has be"ome the lar#est

vehi"le manu!a"turer in .apan with over @9F market share$ Toyota be#an to make inroads into

!orei#n markets in the late :>;9s$ The !irst Crown models arrived in the 41A in :>;=, and by :>B;,

with models su"h as the Corolla, Toyota be#an to build its reputation and sales to rival those o!

domesti" produ"ers$ The !irst Toyota imported into /urope was via 5enmark in :>BE$ Toyota has

"ontinued to #row in /urope%s sophisti"ated and "ompleD market, and in 8999 the "ompany delivered

its ten millionth "ars to a "ustomer in Germany$ *n !a"t, #rowth is "urrently one o! the main words in

Toyota%s /uropean vo"abulary $Toyota is number one !or "ustomer satis!a"tion in the majority o!

/uropean "ountries and has built an eD"ellent reputation a"ross /urope !or reliability and "ustomer

servi"e$ This enviable reputation, alon# with the support o! a network o! more than 8; distributors

and E,;99 sales outlets, are important !a"tors in supportin# Toyota%s /uropean sales #rowth in the

"omin# years$ *n less than =9 years, Toyota Motor has #one !rom bein# a tiny spin&o!! o! a teDtile

loom maker to the world%s bi##est automaker, #uided by a "ulture o! )kai+en), or "ontinuous

improvement and a tireless e!!ort to eliminate waste$

'e see this "orporate tradition "ontinue throu#h de"ades o! its eDisten"e$ 1in"e the "ompany

manu!a"tured its !irst passen#er vehi"le in :>EB, Toyota has "ontinuously pursued the number one

position !or total "ustomer satis!a"tion in all areas, ran#in# !rom manu!a"turin# and produ"ts to sales

and servi"e$ Toyota eDported its !irst .apanese&made passen#er "ar to the 4nited 1tates in :>;=$

1in"e then, Toyota has steadily eDpanded its #lobal presen"e with the establishment o! overseas

bases$

Toyota%s LeDus and Toyota branded vehi"les rank annually amon# the world%s hi#hest uality "ars inthird party surveys o! "ustomer satis!a"tion$ 4sin# su"h su""ess as a sprin#board, Toyota is pursuin#

a poli"y o! sustained development and hopes to use innovation and stron# 5 to "reate "ars that

are #reener, sa!er and more !un to drive$

As a #lobal "ompany, Toyota reali+es that lo"al "ommitment is a prereuisite to su""ess on a

worldwide s"ale$ Toyota%s a"tivities are hi#hly appre"iated around the world, a result o! the

"ompany%s devotion to "ustomer&oriented a"tivities and so"ial "ontributions in every market itoperates$


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$ISTORY OF T$E KIRLOSKAR %ROUP

The Kirloskar Group is *ndias lar#est en#ineerin# and "onstru"tion "on#lomerate$ The Kirloskar

Group is made up o! < major #roup "ompanies whi"h eDport to over =9 "ountries$ The *ndian

promoter Kirloskar #roup is a "entury old industrial le#a"y havin# a stron# presen"e in various

se#ments o! en#ineerin# industry$ The Kirloskar#roup is en#a#ed in manu!a"turin# o! trans!ormers,

ele"tri" motors, diesel en#ine, "ompressor, ma"hine tools et"$ it also has its presen"e in industrial"astin# and pollution "ontrol euipment manu!a"turin#$ The #roup is mainly "on"entrated its

manu!a"turin# !a"ilities in and around Karnataka and Maharashtra

Today, the Kirloskar Group is a "on#lomerate with interests a"ross a diverse ran#e o! industries$ *t is

still spurred by the simple yet pro!ound ethi" born with LaDmanrao Kirloskar that where there is will

there are many ways$


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TOYOTA KIRLOSKAR MOTOR

LO%O&

Toyota Kirloskar Motor P!t' Lt#

TKM is a joint venture between TMC, .apan and Kirloskar Group, *ndia$

As a joint venture between the Kirloskar Group and Toyota Motor Corporation, Toyota Kirloskar

Motor Private Limited (TKM aims to play a major role in the development o! the automotive

industry and the "reation o! employment opportunities, not only throu#h its dealer network, but also

throu#h an"illary industries$


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TKM%s #rowth sin"e in"eption "an be attributed to one simple, yet important aspe"t o! its business

philosophy &" Customer First"$ 'hile mana#in# #rowth, TKM has maintained its "ommitment to

provide uality produ"ts at a reasonable pri"e and has made every e!!ort to meet "han#es in "ustomer

needs$

TKM !irmly believes that the su""ess o! this venture depends on providin# hi#h uality produ"ts and

servi"es to all valued "ustomers throu#h the e!!orts o! its team members$

TKM, alon# with its dedi"ated dealers and suppliers, has adopted the )Growin# To#ether)

philosophy o! its parent "ompany TMC to "reate lon#&term business #rowth$ *n this way, TKM aims

to !urther "ontribute to pro#ress in the *ndian automotive industry, realise #reater employment

opportunities !or lo"al "iti+ens, improve the uality o! li!e o! the team members and promote robust

e"onomi" a"tivity in *ndia$

All Toyota employees are eDpe"ted to embody these values in their daily work, in"ludin#

environmental prote"tion a"tivities$ To )respe"t) the environment, we #o to the sour"e to identi!y and

analyse problems ()Gen"hi Genbutsu), move !orward to )"hallen#e) "onventional ideas and old

habits, to improve !urther ()kai+en) throu#h )teamwork$)

The !ramework provided by JThe Toyota 'ay enables our "ompany to respond to, amon# other

thin#s, the environmental "hallen#es at various sta#es o! the li!e&"y"le o! a vehi"le$ These in"lude

#reenhouse #as emissions, waste redu"tion, in"reased re"y"lin# and the bannin# o! ha+ardous

substan"e use in parts and "omponents$ These "hallen#es will have inevitable "onseuen"es !or

Toyota%s or#anisation and employees, and we must balan"e them with our desire !or !uture #rowth$

*n :>>8, the Toyota Guidin# Prin"iples were established in dire"t response to the international

initiatives a#reed to at the io %/arth 1ummit$% This summit !o"ussed on the potential !or a "lash

between trade and environmental rules, and resulted in a statement o! prin"iples about !orest

mana#ement, "onservation and sustainable development$

The Toyota Guidin# Prin"iples are a "ornerstone o! our "orporate mana#ement philosophy$ These

prin"iples were updated in :>>=, to ensure they "ontinue to provide Toyota with a "lear path towards

a"hievin# sustainable development$


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These prin"iples have been eDplored and developed in Toyota%s Global 0ision 89:;, adopted in April

899


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The Corolla and *nnova are produ"ed at TKM whereas Toyota Camry and Land Cruiser Prado are

imported as "omplete built units$

Also, TKM is opened a se"ond new plant in 8oo< markin# the be#innin# o! a se"ond era !or TKM$ *tis poised to be not just a plant, but also a "ommitment to so"iety and the earth, aimin# to "reate a

new motori+ation !uture !or *ndia$ Toyotas new plant is playin# a si#ni!i"ant role in promotin#

employment and te"hnolo#y trans!er in *ndia$

TOYOTA KIRLOSKAR MOTORS PT LTD (UICK FACTS

5ate ! /stablishment B&"t&>=

Chairman Mr$ 2ujio Cho

0i"e Chairman Mr$ 0ikram 1 Kirloskar

Mana#in# 5ire"tor Mr$ 3$ 7aka#awa

5eputy M5%sMr$ 1andeep 1in#h

Mr$ 1$ Tomona#a

5M5, Commer"ial Mr$ 1hekar 0iswanathan

Paid&*n Capital s$ = billion

1hareholders

/mployees

Avera#e Li!e o! the Plant

Toyota Motor Corporation (F euity

Kirloskar Group (::F euity

@> 6ears


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LOCATION AND CONTACT DETAILS

The Toyota Kirloskar Motors manu!a"turin# plant is situated on the outskirts o! -an#alore City in

the -idadi *ndustrial Area o! amana#ar taluk, Karnataka$ *t is spread over an eDpanse o! @E8 a"res

o! land (approD :$=@@


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OR%ANISATIONAL PERFORMANCE&

MARKET S$ARE&

CMPA76 MKT 13A/

MA4T3* 144K* E=$:

36475A* :B$:

TATA ::$=

MA3 MA3 ::$B

T96TA B$@

G/7/AL MT1 @$E

25 E$=

0LK1 'AG/7 8$>

375A :$

2*AT 9$E9%s$ 3e de"reed that Toyota operations would "ontain no eD"ess

inventory and that Toyota would strive to work in partnership with suppliers to level produ"tion$

4nder hno%s leadership, .*T developed into a uniue system o! material and in!ormation !lows to

"ontrol overprodu"tion$

1ome o! the uniue !eatures o! The Toyota 'ay are?


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+' Kaie? & *t !o"uses on "ontinuous improvement throu#hout all

Aspe"ts o! li!e$ 'hen applied to a workpla"e, Kai+en a"tivities "ontinually improve

all !un"tions o! a business !rom manu!a"turin# to mana#ement$ -y improvin#

standardi+ed a"tivities and pro"esses, Kai+en aims to eliminate waste$ The Toyota

team relentlessly strives to "ondu"t Kai+en a"tivities$

1' Ka


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@UST.IN.TIME

The ).ust&*n&Time) produ"tion philosophy is the !oundation o! the Toyota pro"ess$ This "on"ept

re!ers to the manu!a"turin# and "onveyan"e o! only what is needed, when it is needed, and in the

amount needed$ *n addition, a minimum amount o! inventory is kept on hand$ This enhan"es

e!!i"ien"y and allows ui"k response to "han#e$

STANDARDIBED 6ORK

The Toyota Produ"tion 1ystem or#ani+es all jobs around human motion and "reates an e!!i"ient

produ"tion seuen"e without any )Muda$) 'ork or#ani+ed in su"h a way is "alled standardi+ed

work$ *t "onsists o! three elements? Takt&Time, 'orkin# 1euen"e, and 1tandard *n&Pro"ess 1to"k$


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Takt.Time

)Takt&Time) is the time, whi"h should be taken to produ"e a "omponent on one vehi"le$ This timin#

me"hanism is based on the monthly produ"tion s"hedule$ 5aily total operatin# time is !i#ured based

on all ma"hinery operatin# at :99F e!!i"ien"y durin# re#ular workin# hours$ The Takt time allows

us to produ"e many parts o! many di!!erent types !or use in vehi"les on the produ"tion s"hedule and

to supply those parts to ea"h pro"ess on the assembly line at the proper time$ This keeps produ"tion

on s"hedule and permits !leDible response to "han#e in sales$

Takt Time H

1trai#ht Time N 'ork Time (1e"onds U

euired 7umber o! Produ"tion based on

5emand

U Time availableNdayNmonth


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There had been this wide, lon#&standin# re"o#nition o! Toyota as the premier automobile

manu!a"turer in terms o! the unmat"hed "ombination o! hi#h uality, low "ost, short lead&time, and

!leDible produ"tion$ Toyota Produ"tion 1ystem had been widely "redited !or Toyota%s sustained

leadership in manu!a"turin# per!orman"e$ *n addition, Toyota had been remarkably open in lettin#

outsiders study its operations$ Many other auto "ompanies had done major ben"hmarkin# studies,

and they had tried to implement their own !orms o! the Toyota Produ"tion 1ystem$ There is the 2ord

Produ"tion 1ystem, the Chrysler peratin# 1ystem, and General Motors went so !ar as to establish a

joint venture with Toyota "alled 74MM*, approDimately !i!teen years a#o$

3owever, despite Toyota%s openness and the #enuinely honest e!!orts by other "ompanies over manyyears to emulate Toyota, no one had yet mat"hed Toyota in terms o! havin# simultaneously hi#h

uality, low&"ost, short lead&time, and !leDible produ"tion over time and broadly based a"ross the

system$ This shows how deeply TP1 is in#rained in Toyota #roup "ompanies and the impa"t is has

on the !un"tionin# o! the "orporation$


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PRODUCTION FLO6

The !ollowin# para#raphs will o!!er a brie! eDplanation o! the manu!a"turin# pro"ess !ollowed at the

TKM plant alon# with the systems and pro"esses in pla"e that make this !a"ility and its ideolo#ies

truly one o! a kind$ The produ"tion unit or Jshop !loor is primarily "omposed o! the below divisions

:$ *nventory 1tora#e

8$ Press 1hop

E$ 'eld 1hop

@$ Paint 1hop

;$ Assembly 1hop

B$ 2inal *nspe"tion


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The plant !ollows a Produ"t 2low Layout$ This is also known as Lean manu!a"turin#$ The blo"k

dia#ram o! the plant is shown below?

+' I!etory Stora7e.

The parts that are reuired !or the manu!a"turin# o! the vehi"le are stored in the inventory$

Toyota !ollows the .ust in Time produ"tion te"hniue i$e$ vehi"les are produ"ed a""ordin# to

their demand$ There!ore, the parts that are present in the inventory are only !or that days

produ"tion and maybe the neDt days$ This way the stora#e and maintenan"e "ost is redu"ed$

1' Press S;o9.


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The basi" !un"tion o! the press shop is to press the sheet metal into the reuired shape$ There are

@ sta#es in the press shop$ The !irst two are stampin#, in whi"h the sheet metal is "ut into

reuired si+e usin# templates "alled H5*/1 and holes are made$ The E rdand @thsta#es are press

sta#es$ The ma"hines that are used !or pressin# the sheet metal use hydrauli" "ontrol sin"e the

pressure reuired is hi#h$

E$ 6el# S;o9.

The weld shop is responsible !or weldin# every sin#le part o! the vehi"le$ 'hen the "hassis is

welded the !rame stru"ture is held on a !iDture whi"h operates on the prin"iple o! pneumati" air

pressure$ Then all the small parts to be !itted to the "hassis are welded usin# butt weldin#$ This

pro"ess is done manually$ 2or body related weldin# there is a di!!erent se#ment$ /$#$ weldin# o!

!enders et"$ A!ter the "ompletion o! weldin#, the body is inspe"ted !or de!e"ts$ The door o! the

body is !iDed temporarily !or paintin# purpose$

8' Pait S;o9.

*n the paint shop the "omplete body is dipped into a solution !illed in a tank$ This is done to

"lean the body and make it "orrosion proo!$ A!ter this, primer "oatin# is done whi"h is per!ormed

by a robot be"ause the primer needs to be sprayed uni!ormly$ A uality "he"k is done to ensure

that uni!orm thi"kness o! the paint is maintained$

/' Assem


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The "hassis assembly line and the body trim line move side by side$ n these lines, the various

parts, systems and sub assemblies o! the "hassis and the body are !itted$ n"e the assembly o! the

various parts like door hin#es, wire housin#, en#ine, transmission et"$ is "ompleted, the "hassis is

brou#ht under the body and !itted$ This pro"edure is "alled do"kin#$ A!ter do"kin# the vehi"le is

taken to the !inal line where the other parts o! the vehi"le like sa!ety #lasses, "arpet, doors et"$

are assembled$ The 0*7 (0ehi"le *denti!i"ation 7umber is pun"hed onto the vehi"le by a

ma"hine durin# the !inal line assembly$

0' Fial Is9e:tio.

5urin# !inal inspe"tion, the entire vehi"le is "he"ked !or any de!e"ts in weld, paint and

assembly$ The en#ine is started and "he"ked and the steerin# ali#nment is veri!ied$ Also a shower

test is per!ormed to ensure that there are no leaks in the "ar$ *n "ase o! any persistin# problem,the vehi"le is sent to the repair shop where the de!e"t is re"ti!ied$

CLASSIFICATION OF ARIOUS DEPARTMENTS

A number o! divisions are responsible !or the overall !un"tionin# o! TKM$ The various divisions at

TKM "an be broadly divided into manu!a"turin# divisions and the non&manu!a"turin# divisions$ The

various departments o! the manu!a"turin# department are intentionally lo"ated in the #round !loor o!

the plant !a"ility as part o! TKMs overall strate#y due to its "lose proDimity to the shop !loor, all the

other divisions are housed in the !irst !loor$


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Mau=a:turi7 Di!isios&

:$ Produ"t 5esi#n and 5evelopment 5ivision

8$ Quality Control 5ivision

E$ Plant Administration 5ivision

@$ Produ"tion 5ivision

;$ Quality Assuran"e division

B$ Plant en#ineerin# and servi"es department

No.mau=a:turi7 Di!isios&

General Administration 5ivision

2inan"e and a""ountin# 5ivision

Pur"hase division

Marketin# 5ivision

1ales and 1ervi"es 5ivision

3uman resour"es

The departments that !all under the manu!a"turin# division are those that are primarily "omposed o!

en#ineers and these !un"tion in a symbioti" way that aids in the desi#n, manu!a"ture and deployment

o! its automobiles$

The non&manu!a"turin# divisions are "omposed o! teams that overlook the !inan"e and manpower

plannin# and mana#ement$


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Flo o= material i TKM&.

TKM

SLC

Steel

Supplie!

Supplie!"

#$ !&$p

TKM e'ei(i)*

L$'+l

!upplie!

$ -$.!

I/p$t!

Y+ De+le!

P

T

1

A

IN

S

P

P2 pe!!

12 -el

T2 p+i)t

A2 +!!e/le

I)2 i)!pe'ti$)


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PRODUCT PROMOTIONAL MEASURES

.ust like any other automobile manu!a"turer, Toyota also promotes its !ine produ"ts throu#h

numerous video advertisements in all leadin# television "hannels and also throu#h "aptivatin# print

ads in newspapers, ma#a+ines and other related publi"ations$

RECRUITMENT AND MANPO6ER PLANNIN%

TKMs RECRUITMENT PROCESS EPLAINED ?

I' MANPO6ER RE(UISITION

Manpower euisition is basi"ally o! two types "ate#ori+e based on both reuirement and

san"tion types, whi"h "an be bulleted as below?

Manpower euest 7ew va"an"y

Manpower euest epla"ement (A#ainst esi#ned TM


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PROCESS FLO6 C$ART

$R ? RECRUITMENT SECTION ACTIITIES&

Consolidation o! total manpower va"an"ies a"ross "ompany on a weekly basis$

Allo"ation o! reuirements to respe"tive TMs o! e"ruitment to initiate the a"tivity$

1tudy o! job pro!ile reuired sour"in# o! pro!iles a#ain respe"tive va"an"ies$

1"rutiny o! pro!iles by 4ser div$ 1hort listin# s"hedule interviews$

1ele"tion, Medi"al 2itness Con!irmation, 1alary 7e#otiation !!er release to "andidates$

Post sele"tion joinin# !ormalities in"ludes arran#in# !or initial stay reimbursement o!

joinin# eDpenses$

/stablish network with eDternal head hunters edu"ational institutions on a re#ular basis !or

improvin# the sour"in# a"tivity$

/Dplore suitable options o! hirin# sta!!in# a#en"ies in pursuit o! obtainin# e!!e"tive

manpower servi"es$

Payment o! all invoi"es eDpenses in"urred related to hirin#

Contra"t Manpower Control !!i"e 1e"tion (3irin#, time&o!!i"e mana#ement, payroll

a"tivity to all Contra"t 1ta!!s$

REPLACEMENT

Approval by:

Confirmation of

Age, Job Grade,

Job De!ription,

and "#ill et$

"o%r!ing ofprofile

"!reening by &R

and 'er Diviion

NE( )ACANC*

Approval by:Manpo+er Re%iition

by 'er Div$

-En!loed Job

De!ription.

Call for /ntervie+

"ele!tion a per

"tandard /ntervie+

Pro!e


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TRAININ% MEASURES

At Tkm a tremendous emphasis is laid on trainin# and development o! employees $*n !a"t a separate

stru"ture "alled the HG44K4LI has been set up solely !or this purpose$

The unit is lo"ated a stones throw away !rom the main manu!a"turin# plant and houses a hu#e data

bank o! trainin# resour"es and material$ /Dpert trainers with eDtensive knowled#e o! the Toyota

produ"tion system, lean manu!a"ture te"hniues and other vital nuan"es are "onstantly en#a#ed in

impartin# their know&how to new indu"tees and present sta!! who wish to sharpen their skill sets$

The !a"ility houses numerous "lassrooms, meetin# rooms and administrative o!!i"es that hold

trainin# material in ele"troni" and print !ormat$

-esides these the #round !loor interestin#ly holds a trainin# blo"k that mimi"s the a"tual shop !loor

on a smaller s"ale ,this enables novi"es to learn and have hands on trainin# in manu!a"turin# skills

and te"hniues under hi#her de#ree o! sa!ety and the wat"h!ul eyes o! trainin# eDperts$

$RD MEASURES INCLUDIN% 6ELFARE MEASURES

POLICY AND PROCEDURES

: (GPA*Group personal a""ident insuran"e$

8 Group MedishieldNMedi"laim insuran"e poli"y

E -ank loan s"heme (personal vehi"le loan$

@ elo"ation s"heme$

; 4ni!orm$

B Canteen$

= Commutation$


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+* )%PAI*%rou9 9ersoal a::i#et isura:e'

GPA* is an insuran"e poli"y taken by the C !rom an outside insuran"e a#en"y to make available

medi"al support and !inan"ial assistan"e to TMs in "ase they meet with an a""ident$

All TMs o! TKM are "overed under this poli"y$

1alient !eatures

:$ Medi"al support

8$ *nsuran"e C will reimburse !ull or part o! medi"al eDpenses$ 7o hospitali+ation is reuired

to make a "laim$

E$ 1alary payment

@$ TMs absen"e !rom duty due to a""ident will not a!!e"t the salary as insuran"e C reimburses

the same based on earnin# "apa"ity as per the limit provided under insuran"e poli"y$

;$ The poli"y is available anywhere in the world$

B$ Covera#e ("apital sum insured? TM1 are "overed based on the basis o! B9 times the #ross

earnin#s$ 3owever min "overa#e is s :9 la"ks

-ENEFITS

:$ Loss o! salary on aN" o! a""ident

8$ admissible "laim(temporary total

5isablement

The *nsuran"e C will pay :F o! the Table C

bene!its, subje"t to maD o! s 89,999 N week

as Temporary total disablement bene!it

towards loss o! salary on aN" o! a""ident$

E$ Medi"al eDpenses on aN" o! a""ident

injury

:9F o! "apital sum insured or ;9F o! the

admissible "laim amount whi"hever is less$

@$ Permanent partial disablement

F o! disablement as determined by the

do"tor, subje"t to as F spe"i!ied in the poli"y$


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;$ Permanent total disablement :99F o! "apital sum insured

B$ 5eath(due to a""ident only :99F o! "apital sum insured

1* %rou9 Me#is;iel# J Me#i:laim Isura:e Poli:y

The Medishield *nsuran"e poli"y "overs reimbursement o! in&patient hospitali+ation eDpenses

insured !or treatment o! illness or injury sustained$

/li#ibility? All TMs not "overed under /1* a"t and !amily members "onsistin# o! spouse and two

"hildren (:st 8nd are eli#ible !or "overa#e under Group Medishield *nsuran"e poli"y at "os "ost$

TMs may opt !or eDtension o! insuran"e "overa#e !or other dependant members o! !amily at their

own "ost$

The other dependants o! the TMs "an only be in"luded at the time o! joinin# or durin# the renewal

o! the poli"y every year$

Saliet =eatures

Pre Post 3ospitali+ation eDpenses?

Pre&3ospitali+ation eDpenses (up to E9 days prior to admission

Post 3ospitali+ation eDpenses (B9 days a!ter dis"har#e will be "onsidered !or reimbursement

eD"ept in "ase o! maternity eDpenses$

Maternity -ene!it? s :;999 !or normal delivery, s E9999 !or "aesarian will be reimbursed$

eimbursement is limited to medi"al eDpenses in"urred durin# the period o! hospitali+ation only$

2amily !loater poli"y? The maD amt eli#ible is the total "overa#e o! TM and his !amily$

5omi"iliary hospitali+ation "laims? Medi"al treatment !or period eD"eedin# three days !or su"h

illness or injury whi"h in normal "ourse would reuire "are and treatment at a hospital but

a"tually taken while "on!ined at home in *ndia is "onsidered i! the "ondition o! the patient is su"h

that he "annot be moved to the hospital$


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:$ Pre eDistin# disease "overa#e? The reimbursement o! eDpenses, whi"h are in pre eDistin#

"onditions at the time o! joinin#, is appli"able only i! treatment is taken a!ter >9 days !rom

the date o! "overa#e$

8$ Cashless 2a"ility? The insured "an avail the !a"ility o! hospitali+ation without makin# "ash or

"heue payment$

* -ak loa s:;eme )9ersoal !e;i:le loa*

Purpose? To support TM%s durin# !inan"ial emer#en"ies help them to maintain improve their

uality o! li!e$

5evelop a sense o! belon#in# TM with TKM throu#h mutual trust$

Appli"ability? All "on!irmed 6Ms in all #rades 1-*, -idadi provides this !a"ility the dis"retion o!

san"tion is with the bank$ Company shall take the responsibility only to the eDtent o! dedu"tin# the

/M* !rom the salary remit the same to the bank on monthly basis as per authori+ation$

Relo:atio loa s:;eme&

TM1 shi!tin# their residen"e to the area between ken#eri and amana#ar will be #iven a onetime

relo"ation loan o! s$=899$ This will be interest !ree$ The amount will be re"overed in 8@ eual

monthly instalments o! s$E99$

Ui=orm&

Purpose? : To have sense o! unity$

8 *denti!i"ation$

E 1a!ety and workability$

@ Pride$

; 5is"ipline$


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5etails Quantity

1hirts 2or produ"tion TMs E numbers per year

2or o!!i"e sta!! E numbers on joinin# 8 every year$

Trousers 2or produ"tion TMs E numbers per year

2or o!!i"e sta!! E numbers on joinin# 8 every year$

.a"ket : number in 8 year$

Cap : per year$

1o"ks 2or produ"tion TMs E pair per year

2or o!!i"e sta!! V Epairs on .a"ket 8pairs pa$

7ormalNsa!ety shoes : or 8 pairs

1hoes !or o!!i"e on"e in a year

Catee&

Company provides break!ast lun"h to all T$M at a subsidi+ed rate$ A sum o! s$:E per day will be

dedu"ted as the number o! days worked !rom the salary$ The option !or availin# a dis"ount !or

-reak!ast or Lun"h "an be eDer"ised on"e in a month$ Company provides sna"ks to TM at s$Eper

TM per day durin# eDtra workin# hours$

Commutatio


55/61


TM may avail the "ommutation !a"ility by makin# a reuest in !orm pres"ribed in this behal!$ A sum

o! s$


56/61


S'6'O'T ANALYSIS

STREN%T$S ?

-etter Produ"t Quality and stron# produ"t *nnovation skills

Trusted and reliable brand ima#e o! its patent "ompany TMC worldwide "ontributes to its

#oodwill

'ider Produ"t Line

Availability o! latest te"hnolo#y throu#h in house 5

1tandard system o! produ"tion and "ompany "ulture is !ollowed uni!ormly throu#hout the

world thereby no deviations in its uality

Pull system o! produ"tion that depends on sales velo"ity and hen"e "ars are built to order,

thereby eliminatin# idle inventory and overprodu"tion wasta#e

Toyotas "ulture and ideolo#y !ollowed by even its suppliers and dealer network

6EAKNESSES .

3i#her Lead Time

The present and only plant in *ndia at TKM has neared peak "apa"ity

*nternal "on!li"ts o! interest su"h as Trade union issues that have arose in the past and

severely a!!e"ted the "ompanys output and drew "riti"al media reviews

7o proper system to "he"k whether the worker is usin# sa!ety wear or not, whi"h may lead to

a""idents


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OPPORTUNITIES ?

The #rowin# automobile market in *ndia, presently said to be #rowin# at over :BF, has

"reated new possibilities in various se#ments o!!ers numerous avenues !or #rowth

*n"reasin# buyin# power and "ustomer base in *ndia

/Dpansion o! produ"t port!olio to diversi!y and thereby establish in this bi##er domesti"

market

T$REATS ?

/ntry o! international players in domesti" market

/D"han#e rate !lu"tuations that a!!e"t the "ompanys overall revenues sin"e majority o! its

auto "omponents, C-4s and en#ines are pro"ured !rom overseas

*t has not been lar#ely su""ess!ul in terms o! market penetration in *ndia $Globally Toyota is

a leader in produ"tion and sales


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FINDIN%S AND CONCLUSIONS

Fi#i7s

SAFETY

The importan"e #iven to sa!ety in the plant is phenomenal $*n !a"t it was truly admirable to see that

this level o! sa!ety was !ollowed not just on the shop !loor but throu#hout the eDpanse o! the entire

!a"ility$

ne eDample is the HG//7 PAT3I system that literally re!ers to narrow lanes painted #reen

vi+$the only areas that personal and visitors are advised to walk on in the shop !loor as it tra"es the

areas where sa!ety is least "ompromised$ This initiative also has H1TP&LK&GI si#ns printed

on in bri#ht yellow at all turnin#s, "rossin#s and interse"tions to serve as a "ontinuous reminder to be

"autious and wat"h!ul $Toyota aims to a"hieve a +ero a""ident reputation throu#h these e!!orts$

Moreover, all personnel in the plant are provided adeuate body prote"tion su"h as helmets, elbow

#uards, #loves, aprons, et"$ in meetin# with standard sa!ety reuirements$

E(UALITY AND OPEN CULTURE

Another notable and admirable ideolo#y !ollowed at TKM is that o! euality and open "ulture$ The

"ommon lun"h hall is a per!e"t eDample to validate this !a"t $3ere ,the same deli"ious meals are

served to all employees ,mana#ers and shop !loor me"hani"s alike, #ivin# no pla"e !or dis"rimination

o! seniority$ n the "ontrary this builds a stron# !eelin# o! oneness amon# the sta!! makin# them

truly !eel they are a si#ni!i"ant and intri"ate part o! the Toyota !amily$

Another notable eDperien"e is the si#ht that meets ones eyes at the o!!i"e blo"k $There is no "ubi"les

or separators throu#hout the o!!i"e rede!inin# a "ulture o! transparen"y in operations and

"ommuni"ation without boundaries or hierar"hi"al dis"rimination$


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EMPLOYEE RECREATION

As one "an ima#ine how busy the produ"tion !loor "an #et espe"ially, when theres a "ar bein# rolled

out every minute, yet the "ompany has #iven thou#ht about employee re"reation and made it a

possibility by a uniue idea o! ere"tin# board #ames ri#ht in the midst o! the assembly lines$

T$EORY IN PRACTICE

Toyota believes in pra"ti"in# what it prea"hes$ HGroup a"tivity boDI on the shop !loor that

temporarily houses mana#ers and senior personnel in a""ordan"e with their "ulture o!

Gen"hi&Genbutsu, that means H#o see !or yoursel!I, as Toyota mana#ers are eDpe"ted to #o and see

operations !irsthand to have an understandin# o! how it "an be improved$ These H boDes H eliminate

the need !or mana#ers to walk to and !orth !rom shop !loor to o!!i"e !loor vi+$ a waste o! time and

ener#y$

CARE FOR T$E ENIRONMENT

The "ompany in stayin# true to its outlook on prote"tin# and sustainin# the environment is "onstantlyen#a#ed in numerous a"tivities to !a"ilitate the same$ /ven durin# the "ourse o! my onsite visits this

was evident with the preparations undertaken !or a proposed saplin# plantin# drive$


60/61


CONCLUSION

Toyota Kirloskar Motors has #reatly "ontributed to the hu#e #rowth o! the *ndian Automobile

*ndustry$ Toyota Kirloskar Motors has a #reat "ommitment to the so"iety and the earth, aimin# to

"reate a new motori+ation !uture !or *ndia$ Toyota will play a si#ni!i"ant role in promotin#

employment and te"hnolo#y trans!er to *ndia$ Toyota believes that manu!a"turin# is all about

!osterin# people it aims to apply all its ener#y into nurturin# individuals who "an "ontribute

"onsiderably to the revitali+ation o! the *ndian e"onomy$

Toyota Kirloskar Motors has already started the work o! the se"ond plant whi"h is s"heduled to

be#in operations by mid 89:8 with an initial annual produ"tion o! :99999 "ars the plant is poised toprodu"e passen#er "ars, in"ludin# a new "ompa"t vehi"le$ This would "han#e the whole Automobile

*ndustry$ *t would "reate hi#h uality Cars and would also in"rease the "ompetitiveness eDistin# in

the market$

'ith the above in!ormation we "an say Toyota Kirloskar Motor has a lon# way to #o throu#h with

innovative produ"t and it has s"ope !or diversi!i"ation in various be"ause o! lar#e untou"hed market$

3u#e *nvestments are "omin# !rom Toyota and Kirloskar #roup and the 1pe"ial Advanta#e is #ettin#

the Te"hnolo#y trans!er !rom Toyota$

Today,Toyota Kirloskar Motor plays a vital role in rollin# out Cars in *ndia with state o! the art

5esi#n and Te"hnolo#y$ This "an only be possible by !ollowin# world "lass Quality, *nnovation,

Leadership, Prin"ipals and 0alues$ Toyota Kirloskar Motor will not just drive the *ndian Automobile

*ndustry but it would make si#ni!i"ant inroads su"h that it would revolutioni+e the Global

Automobile *ndustry$


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SU%%ESIONS

Pri"in# and Produ"t sales must be made e!!e"tive su"h that the "ompany "an be "ompetitive withthe lo"al and *nternational manu!a"turers$

edu"e the /D"han#e rate !lu"tuations that a!!e"t the "ompanys overall revenues be"ause

majority o! its auto "omponents, C-4s and en#ines are pro"ured !rom overseas

As Toyota #ives the !irst pre!eren"e to the 1a!ety, but still workers are very ne#li#ible

sometimes, they i#nore to wear the sa!ety wears when they are in the line, so * su##est they

should have a sa!ety inspe"tion team, where they will be "ontinuously observin# the workers$

'orkers waste lot o! their time in playin# board #ames as there is no proper observations on

these areas, so * su##est that there should be proper monitorin# system, so that all the man hour is

used e!!i"iently$

There do not eDit a proper relation between the team leader and the team members, so * su##est

that proper steps must be taken in redu"in# the "old wars between the employees so that they

maintain a #ood workin# environment$

68326760-Project-Report-on-Totota-Kirloskar-Motor.doc

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