TELCON AT GLANCE 1.1 HISTORY OF TELCON : (MILESTONES) 1994 – Construction Business Unit formed 1997 – Tie up with John Deere for manufacture of Backhoe loaders 1998 – New Manufacturing facility set up at Dharwad 1999 – CEBU Created into a separate Company Telcon 2000 - Telco and Hitachi sign JV for 80:20 stakes in Telcon 2000 – Agreement with Euclid – Hitachi for joint design and manufacture of Dump Trucks. 2001 – Agreement with Bell-Equipments, South Africa for joint design and Development and manufacture of multi utility loaders. 2002 – Agreement with Lebero .Spain for manufacture of Soil and Asphalt Compactors. 2003 – TERPL (Telcon Eco Road Resurfaces Private Ltd.) Formed in 2003 (Holding: Telcon 36%, Hitachi 20%, Green Arm 20%, IVRCL 24%) 2005 – TATA Motors $ Hitachi sign New JV Agreement for 60:40 Stakes
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TELCON AT GLANCE
1.1 HISTORY OF TELCON: (MILESTONES)
1994 – Construction Business Unit formed
1997 – Tie up with John Deere for manufacture of Backhoe loaders
1998 – New Manufacturing facility set up at Dharwad
1999 – CEBU Created into a separate Company Telcon
2000 - Telco and Hitachi sign JV for 80:20 stakes in Telcon
2000 – Agreement with Euclid – Hitachi for joint design and manufacture of
Dump Trucks.
2001 – Agreement with Bell-Equipments, South Africa for joint design and
Development and manufacture of multi utility loaders.
2002 – Agreement with Lebero .Spain for manufacture of Soil and Asphalt
Compactors.
2003 – TERPL (Telcon Eco Road Resurfaces Private Ltd.) Formed in 2003
(Holding: Telcon 36%, Hitachi 20%, Green Arm 20%, IVRCL 24%)
2005 – TATA Motors $ Hitachi sign New JV Agreement for 60:40 Stakes
2006 – Setting up of a New Plant at Kharagpur announced.
1.2 TELCON PROFILE
TELCO CONSTRCTION EQUIPMENT CO. LTD, (TELCON) is in the business of
designing, manufacturing, selling and servicing a wide range of construction equipment,
viz. Excavator, loader, and backhoe and crawler crane. It enjoys a 65% market share of
excavator.
TELCON is a 60% subsidiary of TATA MOTORS, the remaining 40% being held by
HITACHI CONSTRUCTION MACHINERY CO.LTD. (HCM), Japan.
TELCON was spun off from TATA MOTORS in 1999, but its root as a manufacturer
of Construction Equipment goes back as far as 1960. In 1985, it entered the technical
collaboration with HCM, Japan for manufacturing of Hydraulic Excavators and Cranes in
Jamshedpur, as major growth strategy of TATA MOTORS. In 1998 it started
manufacturing backhoe loaders in technical collaboration with John Deere, USA.
TELCON has its corporate office and marketing head quarters (MHO) in Bangalore. The
MHO is the hub of activities for the sale and service of OE’s and spares parts, products
supports and the functioning of authorized customer support centers and dealers. The
marketing group has it’s service head quarters in Jamshedpur, main spare parts were
house at Dharwad, Kolkata and Panvel, a marketing network of seven branch
office(BO)in Kolkata, Bangalore, Hyderabad, Nagpur, Delhi, Ahmedabad, Mumbai and
25 zonal offices at strategic locations attached to different BO’s it also has 24 dealers all
over the country.
1.3 TATA GROUP PROFILE
1) Founded in 1887 by Mr.Jamshedji Tata.
2) Turnover at 17.8bn USD for the year ending 31st March -05.
3) Highly diversified group with over 80 group companies present in several sectors
Of economic importance.
4) Leading business group in the private sector.
5) Total Group Revenues equivalent to 2.8% of India’s GD.
6) India’s largest Foreign Exchange earner in the private sector.
7) India’s largest private sector employer.
8) Strong support of over 2 million share holders.
IMPORTANT GROUP OF COMPANIES
TATA TETLY (world’s largest integrated tea operation)
TATA CONSULTANCY SERVICES (Asia’s largest software exporter)
TITAN (The world’s sixth largest brand of watches)
TATA STEEL (India’s largest private sector steel producer)
INDIAN HOTELS (Largest 5-star chain of luxury hotels in India)
TATA POWER (India’s largest private sector power utility)
1.4 TECHNOLOGICAL PARTNERS
HITACHI: Japan for manufacture of hydraulic excavators and hydraulic cranes.
JOHN DEERE: USA for manufacture of BACKHOE LOADRES.
LEBERO: Spain for VIBRATORY COMPACTORS.
CESAN: Turkey for Hot mix plants.
EUCLID: USA for off-highway dumpers.
TADANO: Japan for truck mounted cranes.
BELL EQUIPMENTS: SA for agricultural equipments.
GREEN ARM: Japan for road asphalt recycler.
HITACHI SUMITOMO: For cranes.
1.5 COMPANY CONSTITUTION
Telcon is a joint venture between TATA Motors - a member of the renowned
TATA Group and HITACHI Construction Machinery Co. Ltd., Japan with
HITACHI holding 40% equity stake.
TATA HITACHI
1.6 QUALITY CERTIFICATION
Telcon is an ISO 9001 – 2000, ISO 1400 – 1994 (JAMSHEDPUR UNIT) certified company. The plant got the ISO 9001 certification in the year 1995 and ISO 14001 in 2004.
FACILITIES PROVIDED BY THE COMPANY
Latest sophisticated manufacturing technologies.
Computerized oxy-cutting machines.
5-face milling machine.
CNC machines for gear manufacturing.
Fully mechanized paint shop.
Robotic Welding machine.
State-of-art design centre with CAD/CAM facility.
Training center.
1.7 TELCON WIDE RANGE
Telcon Office
DealerOffice
Manu-facturingFacility
RepairingWorkshop
CorporateOffice
Warehouse
ChandigarhDelhiJaipur
LuknowGuwahatiW.BokaroUdaipur
AhmedabadIndore
JabalpurJamshed-pur
DurgapurNagpurKolkata
Bhubanesh-war
RajkotMumbaiVizagPune
HyderabadGoa
DharwadChennai
BangaloreSalem
MaduraiCochin
JamshedpurDharwad
JamshedpurAhmedabad
PuneKhamamBangalore
Bangalore New DelhiBokaroKolkata
JamshedpurUdaipur
AhmedabadKhamam
PuneMumbai
GoaDharwadBangaloreChennaiCochin
PRODUCT PROFILE
2.1 HYDRAULIC EXCAVATOR
1)
MODEL: TMX 20
ENGINE: Tata 483DL
HORSEPOWER : 28 HP
Configuration BackhoeOPERATING WEIGHT 2200 kg
BUCKET CAPACITY 0.07 cum
ARM DIGGING FORCE 1300 kgf
Tata TMX20 - the smallest mini excavator in India developed by Telcon, pioneers in mini excavator technology in India. Its smallness gives it access to confined areas and makes it easy to transport. It can ply on roads if fitted with rubber shoes. A variety of attachments makes it versatile. We call it our 'Little Master'.
Fortify your business - All of four tons, the Tata-Hitachi EX40 is a machine ideal for trenching jobs. It is sturdy inspite of its small size. It can do small jobs with ease.
According to the model, steel plates Are booked in the steel yard
From the trolley the plates are brought To the bed
There are 2 kinds of materials:-
1) Direct Materials :- It goes directly to fabrication
2) Indirect Materials :- It goes to the preparation shop where chamfering , Straightening is done. Rolling or bending is also done, But this process depends on the material.
H) HEAVY MACHNE SHOP
Jobs are brought from fabrication shop
(According to the (According to the monthly Dates from the fabrication schedule)Shop)
(The Load Planning on M/C is done)
(Tools) ( Acc to the Delivery dates)
- (In case of any Breakdowns or Urgent jobs Plan may change)
- (In case of quality problems Rectification is done)
I) MAINTAINANCE
There are 4 kinds of processes:
1) Breakdown Maintenance Process
2) Corrective Maintenance Process
3) Preventive Maintenance Process
4) Technological Up gradation of Machine Process
KEY STEPS OF THESE PROCESSES ARE IN THE FORM OF:-
1) Breakdown Maintenance Process -
: Attend the breakdown
: Trouble shooting
: Restoration
: Analysis of repetitive measures
: Take preventive measures
: Sharing the learning’s
2) Corrective Maintenance Process –
: Analysis of the malfunctioning
: Find the root cause
: Take the counter measure of the root
Cause
: Take preventive measures
: Sharing the learning’s
3) Preventive Maintenance Process –
: Selection of the machine for
Preventive maintenance
: Prepare the checklist
: Schedule the preventive maintenance
Plan
: Execution of preventive maintenance
As per the check list.
: Fill up check list and the records.
4) Technological Up gradation of Machine process –
: Brainstorming & idea of
New areas
: Identifying different
Resources available
: Arrange the resources
: Execution of job
: Knowledge sharing
4.2 SALES AND MARKETING
MARKETING OBJECTIVES OF TELCON:
Company will manufacture as per expectation.
ORGANISATIONALSTRUCTURE
MD of MARKETING& SALES
CHIEF OF MARKETING
Sr GM (SALES)AGM (BUSINESSDEVELOPMENT)
Chief sales mngr (south)
Chief sales mngr (north)
Chief sales mngr( east)
Chief sales mngr( west )
Market share should be maintained.
The leadership position should be maintained.
MARKETING CHALLENGES OF TELCON:
THE CHANNEL OF DISTRIBUTION:-
1)Cut throat
competition in the market.
2) Increased production range.
3) Lot of imported new products.
4)Competi-tors are increasing (like-JCB, L&T Komatsu,Volvo,Caterpillar,BEML,Kobelco(Ja-pan),Daewoo,Hundai)
5) Improve after sale service.
6)Improve the quality.
SMALL CLASS OF MACHINES TELCON(TJD, EX70, EX110EX200)
DEALERS
MARKET
SELLING MACHINES THROUGH SALES OFFICERBIG CLASS OF MACHINES
PROMOTION
Promotion is that marketing communication activity that attempts to inform and
remind individuals and persuade them to accept , resell , recommend or use a
product or service or idea .
PROMOTIONAL STRATEGIES OF TELCON
Customer meet road
To held shows
Participation in big exhibitions at national and
state level.
Promotional schemes to dealers , which
Include price deals, buying allowances
Etc (MONSOON MASTI SCHEME on various
Products)
Door to door selling ( through dealers or direct)
Sales meeting happens in customer’s office
ADVERTISEMENT MEDIAS
News paper advertisement
Hoarding at different locations.
MARKETING PLAN
Average Growth of sales of TELCON is 35% per year, which is
highest in India .Its plan is to work and to be committed towards the
Achievement of the vision of the company.
MARKETING EXELLENCE AWARD
Telcon gives rewards to enable superiors to instantly recognize
And reward employees’ achievements and exemplary individuals
And team behavior. KAMWABI AWARD is the way by
Which Telcon rewards the Sales Officer and Service Engineers
For their outstanding deeds.
CUSTOMER OF TELCON
MICA [Mining Infrastructure Construction and Agriculture] is the customer of Telcon. It may be big company or a small owner.
COMPLETE CUSTOMER CARE
1) Expert Diagnostics 5) Component Reconditioning
2) Breakdown Repairs 6) Annual Service Contract
3) Machine Health Checkups 7) Annual Maintenance Cont-
ract
4) Component Exchange Schemes 8) Total Maintenance Cont-
Ract
9) Machine Re- conditioning
4.3 SUPPLY CHAIN MANAGEMENT
ORGANISATIONAL STRUCTURE:
Main functions of SCM:
Is to bring components from outside the plant
And getting material from vendors globally.
AGM of SCM
Div mngr(global sourcing& Crisp implmntatn)
Div mngr (strategic sourcing)
Sr mngr(procurement –assy)
Asst Div mgr(procurement manf shop)
Asst Div Mngr(Procuremnt- New Model)
Sr mngr(General Purchase & Gate)
Sr Mngr(Procuremnt –after market)
Asst mngr(Imports &prop Item procurement
Asst Div mgr
Mngr & Asst mngr
Mngr
Asst mgr & staff
Staff/ operaters
Asst mngr&Staff
Mngr,Suprvisr,Staff
Supervisor&Staff
Asst mgr,suprvisor,Staff
Asst Mngr
Asst Mngr
Mngr,Staff, Supervisor
Asst mngr&Staff
Mngr,Staff, supervisor
Staff , supervisors
Staff, supervisors
The different types of vendors are from where the SCM receives
Components are:
Local vendors
Out station vendors
Vendors outside India
SCM objectives are:
Production in time
In the most reasonable price
Best quality
Staffs those who report the Chief of SCM:
1) Local procurement and store head
2) Head procurement and casting and forging team
3) Outstation vendors and imports
4) Sourcing Head
5) Indirect Material Head (indirect mat like – shirts, helmets, things which
are not included for production process)
Work Flow in SCM:
The design department sends the drawing Once the drawing is freezed
The best Quotation is received
Zero – based costing is done
Place a formal Purchase Order (An agreement where Telcon is giving firm confirmation through purchase order)
Then QA check is done
Then procurement function starts
Material comes in the gate
Material has to be unloaded
Then it is stored (job of the store is to maintain codes of component)
The final stage is to issue to the assembly
4.4 DESIGN AND DEVELOPMENT
Telcon Design has a prominent position in overall Telcon organization. In
order to ensure that Telcon will remain at the cutting edge in the area of
design & development, the Design function has launched new design
objectives in October 2003. It continues the sincere effort in designing of
products, in close cooperation with the other Telcon function, ABEC,
designer, suppliers and the design education programs.
The Telcon Design Sub – Council is involved in drafting the quality aspects
of Design. The goal is to ensure optimal growth conditions for the design
area in future. The quality objectives of Telcon design derived from quality
policy of Telcon are:-
1) Maximizing customer satisfaction by designing and developing reliable
and cost effective construction equipment as agreed with Sales &
Marketing / NEW PRODUCT INTRODUCTION COMMITTEE (NPIC).
2) Continuous improvement of products through quality improvement
projects.
3) Training of designers in key technology areas.
4) Implementation & practice of Quality & Environment Management
System confirming to ISO 9001:2000 and ISO14001: 2004 standards.
5) Improvement in work life through team word and participate
management.
Overall action areas of the design policy:-
1) Continued development of the new product to enable Design function to
tackle the challenges of the future.
2) Creation of State-of –the-art Design Centre through investment in Design
tools, hardware & software.
3)Creation of State-of-the-art Development Center through investment in
prototype shop & Testing laboratories in the field of structure , hydraulic ,
transmission , and electrical & electronics .
4) Promotion of the access to design information & knowledge for overall
development of Telcon.
5) Branding of Telcon Design at national levels Design at national levels
through participation in seminars & conference & association.
Design & Development of Telcon has already developed & strong & full-
fledged Design capability overt the last 30 yrs, from the time it was brought
under while Telco’s engineering Research Center in 1976.
It has developed capability to independently design and develop almost.All
types of construction equipment that Telcon manufactures today. In addition
to design & development has embarked on a very ambitious plan of setting
up in house testing facilities for testing complete machines & their
components with a view to elevate the existing Design & Development
function to a full-fledged Research & Development Center including a
prototype building shop capable of designing, development & testing the
entire range of construction equipment within a period of 3 yrs.
4.5 PLANNING
2 Major areas of Planning
PROCESS PLANNING :
Organizational chart
Se.GM(Planning and Kharaghpur
project)
Se Div mngr (Jamshedpur capital purchase&process planning)
Se Div mngr(Kharaghpur Project)
-OBJECTIVES: The objective of this process is to postulate cost
Sr Mngr east Mngr HR Mngr HR Asst Officer East Asst Officer East Mngr HR Asst Mngr HR
HR department of Telcon is responsible for the recruitment of
employees, induction, training, welfare activities, payment of remuneration
etc. Its purpose is to establish and maintain sound personnel relations at all
level of organization and to secure the effective use of HR.
Telcon follows the ADR system (Attract, Develop and Retain) for
employees .They attract trainees by presenting the scenario of Telcon to
them where in they present the culture , vision , mission ,growth , turnover ,
future plans of Telcon. They also attract by their salary packages. Tata brand
name is another way by which people get attracted. Telcon develop their
employees through training. Here right person is allotted with the right job
so that there is complete job satisfaction .The competency development is
also done to check the efficiency level of the employees. There are various
ways by which Telcon retains its employees .They provide compensation
packages, rewards are given to the employees so that the deserving
employees are recognized for their good performance. Various facilities are
rendered to the employees such as housing facility, medical facility,
education, communication facility, and transport and loan facility.
The basic functions carried out by Telcon HR department are as follows:
1) Recruitment : The main employment function includes recruitment ,
where techniques like interviews , tests are carried out .Training is
imparted and induction training program is also conducted .An
effective recruitment is increasingly important today .Recruitment has
other advantages such as it reduces duplication , makes it easier to
Spread the cost of new technologies (such as Internet – based
recruitment).It also produces synergies .For instance, “instead of looking for
one financial analyst, it can recruit for five positions from the same
candidate pool.” There are two types of recruitment carried out ,first is
campus where fresher are taken and another is off campus where lateral
( experienced) are taken .There are 3 types of tests carried out in first stage
those are written , GD and PI .In the second stage, medical test is conducted.
For lateral candidates directly PI is taken.
2) Training and Development :
These programs are based on the gaps between employees’
competencies and the requirement of their present or future jobs. Employees
who lack the specific skill can be directed to developmental activities
designed to teach them the missing skills, improve their performance in their
existing Job or prepare them to advance to higher level jobs in the future.
Inductions are also conducted, wherein the new employees are introduced to
the organization and procedures, rules and Regulations.
In Telcon Kirkparick model is followed for training
candidates. There are 4 levels, in the 1st level Pre-Test And Post- Test are
held, in 2nd level immediate feedback is taken Where there is an attempt to
assess the students have advanced in Skills, knowledge, or attitude .In the
3rd level on – job Performance, implementation of learning into work. The
final and the 4th level measures the success of the program or the
Impact of the program.
3) Compensation Management :
The Compensation Management manages and evaluates pay and
classification systems to allow the company to be internally equitable and
externally competitive. Compensation ‘s goal is to establish pay and
classification practices that allow the Company to attract and retain good
employees in support of organizational goals while ensuring compliance
with local, state and federal regulations. Compensation Management is an
integral part of the management of the organization. Compensation
Management contributes to the overall success of the organization in several
ways. To be effective, the managers must appreciate the value of
competitive pay, their human resources, and have an investment view of
payroll costs.
4) Rewards and Recognition :
Rewards and Recognitions are given to enable superiors to
instantly recognize and reward employees’ achievements and exemplary
individual and team behavior. In the areas like customer service, cost
reduction, Quality improvement, process improvement, innovation and
creativity, leadership n responsibility and enhancing the company
image .Kamyabi Award is the one given by Telcon.
5) Talent Management :
Under this the talent tool is identified and then it is retained.
SRATAGIC CHALLENGES FOR HR IN TELCON:
- World class proficiencies should be inculcated
- Upgrading the existing HR process help Telcon to become global.
- Communication ( Corporate or Internal Communication )
HR FOCUS FOR THE FUTURE
- Acquiring a broader range of challenge
- Develop real leaders
- Creating a cutting edge employee experience
CASE STUDY
The track frame of an excavator belonging to one if our
customers got damaged in an accident. Firstly, the insurance company
refused to pay the sum insured for. The insurance company also rejected the
warranty claim stating that the failure was due to material defect.
Secondly, the customer had purchased the machine on a monthly
basis. He used to get paid on a per hour basis for the work done by this
excavator .Against this, the lead time for the delivery of a new track frame is
1 month. The track frame has to be made in Jamshedpur and transported to
Andhra Pradesh where the customer’s machine was working. On one hand,
the customer was rebuffed by the insurance company, and on the other hand
he was faced with dire prospects of meeting his EMIs on time with a
machine which was not working.
One of the service engineers arranged for an old track frame at a
very low price from scrapped machine belonging to another customer. This
solved the immediate problem of getting the machine back on its feet
thereby ensuring the cash flow to the machine owner was not hampered and
he could meet EMI payments on time. Our service engineer also
successfully took up the issue of insurance with the higher authorities and
got them to release the payments. With this new payment and the kind of
support he received from Telcon, the customer placed an order amounting to
Rs6.5 lakhs with Telcon. Our service engineer completed the entire process
within 4 days.
VISION AND MISSION
TELCON VISION
“GLOBAL TOP 25 IN CE INDUSTRY BY 2012 ’’
TELCON MISSION
To be the most trusted partner for providing full line of
constructive solutions for Mining, Construction, Infrastructure &
Agriculture sectors.
While Dominate the Indian Market, we shall make
concerted efforts to meet our Global Ambitions.
Our Hallmark shall be our Motivated people, Strong
Partnerships at all levels, Superior Technologies and our
widespread customer support, all working in unison with
Environment and society.
QUALITY POLICY
Telcon is committed to maximizing customer satisfaction and delight.
It shall strive to achieve this goal through the continuous improvement
of its design and development, manufacture; sale and service of its
products. It shall also ensure that its products are reliable, safe,
environment – friendly and cost- effective and its services are of the
highest order.
QUALITY OBJECTIVES
Top line growth of 50% over last year.
Achieve 10% reduction in manufacturing & product delivery costs.
Generate 10% Revenue from new products
ZERO Defects during commission and 50% reduction in defects rate
up to 2000 hours.
Increase market share by 25% in Excavators 4% in Backhoe loaders
and 5% in wheel loaders.
2 % increase in :
1) CSI (Customer satisfaction index)
2) ESI (Employee satisfaction Index)
3) DSI (Dealer satisfaction Index)
4) VSI (Vendor Satisfaction Index)
5) SSI (Society Satisfaction Index)
100% Employee involvement in improvement activities at the shop
level.
Achieve Business excellence at par with 625 in TBEM.
Achieve 85% first fill availability of shares.
SWOT ANALYSIS
STRENGTHS
One of the Telcon’s greatest strength is the company’s sheer momentum. It
has never slowed down, and continues to squash competitors left and right
by being the first- or at least the most heavily promoted-in every market it
conquers. Certainly, Telcon doesn’t give up; its products may not be the best
upon first release, but it continues to improve on them year after year and
push new products out the door at an alarming rate. This persistence has
surely paid off, and Telcon definitely isn’t going anywhere.
Telcon “has created tremendous value for India” with all the innovative
products it has developed, not to mention the thousands of jobs it has
directly and indirectly created for Indians.
Another strength is that Telcon has a significant degree of employee
ownership. The reason this is considered strength is that the corporation’s
undoubtedly employees have a more dedicated sense of loyalty and
responsibility to their employee’s of a company whose financial futures are
not dependent on its fate…
WEAKNESS:
Company is lacking with a marketing department where it leads to poor
promotional activities such as advertising and sales promotion activities
OPPORTUNITIES:
There is high demand for their products in international market.
Now it’s the time for the company to enter into production of machines which
has better facilities than their competitors.
THREATS:
Competition has grown very tough with Multi National Companies.
Many new competitors are increasing.
RECOMMENDATIONS
1) Much higher utilization of capacity with better infrastructure and
providing exposure before better technologies in the market
2) Employees should be encouraged & supported to take risks and
motivated for new innovations
3) Top management should create a participative environment so that the
competent people can be involved to set higher and realistic objectives
4) Regular feedback should be given to the team members to keep them
motivated
5) A better communication system should be developed to reduce the
discrepancies.
MY LEARNINGS
As a Professional:
1) Tactfully and smartly handle situations2) To be a responsible person3) To be dedicated and honest towards my work4) To talk to the point5) Strive for perfection 6) To be attentive to details7) Team spirit8) To give respect to co-workers
As an individual:
1) Sustain hard work.2) Commitment towards the work assigned.3) Manage people effectively.