Divgi Industries Sirsi

DIVGI INDUSTRIES PVT LTD, SIRSI CHAPTER-I
INTRODUCTION
A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment
There are a variety of legal types of organizations, including corporations, governments, non-governmental organizations, international organizations, armed forces, charities, not-for-profit corporations, partnerships, co-operatives, and universities. A hybrid organization is a body that operates in both the public sector and the private sector simultaneously, fulfilling public duties and developing commercial market activities. In the social sciences, organizations are the object of analysis for a number of disciplines, such as sociology, economics,[1] political science, psychology, management, and organizational communication. The broader analysis of organizations is commonly referred to as organizational structure, organizational studies, organizational behavior, or organization analysis. A number of different perspectives exist, some of which are compatible:
GOVT. FIRST GRADE COLLEGE, SIRSI
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DIVGI INDUSTRIES PVT LTD, SIRSI

1.
From a process-related perspective, an organization is viewed as an entity is being (re-)organized, and the focus is on the organization as a set of tasks or actions.
2.
From a functional perspective, the focus is on how entities like businesses or state authorities are used.
3.
From an institutional perspective, an organization is viewed as a purposeful structure within a social context. Economic approaches to organizations also take the division of labour
as a starting point. The division of labour allows for specialization. Increasing specialization necessitates coordination. From an economic point of view, markets and organizations are alternative coordination mechanisms for the execution of transactions. By coordinated and planned cooperation of the elements, the organization is able to solve tasks that lie beyond the abilities of the single elements. The price paid by the elements is the limitation of the degrees of freedom of the elements. Advantages of organizations are enhancement addition and extension.
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STATEMENT OF THE PROBLEM
One of the main problems faced by management in organizations is the need to maintain a competitive advantage. With the global economic climate it has been difficult for companies and organizations to keep up with their rivals, let alone better them. Corporate culture is one responsibility that management needs to adhere to because it is vital when you want to succeed in business. It creates a sense of innovation and productivity as opposed to a more negative culture which may stifle employees and detrimentally affect job gratification. In addition, managers have a huge responsibility for guiding the organization in the right their employees and resources in order to put the organization in a direction that will grant them success. Most modern management take on a strategic management style which initially states the main aim of the particular mission which follows by the processes that will be carried out on a day-to-day basis.
Moreover, one of the most important aspects that a good manager requires is solid communication skills. It is very likely in business that you are going to come into contact with conflicting styles of communication, however it is the manager's job to be aware of this as well as their own style. They need to be able to enforce their own style of communication while being able to adapt to others, especially if they are consulting with other organizations and companies.
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The first sees in spontaneity decisions made at root level, local initiative and the absence of delegated decision making. In this sense all revolutions have been largely spontaneous, at least at first. Consciousness, as the opposite, comes to mean centralization and plans carried out, on instructions, by members of a disciplined organization. They may, individually, be unaware of the part their action plays in the total scheme, and the consciousness is that of the leadership, whether it is elected or not. Seen thus, Lenins claim that consciousness must come to the workers from outside, from an organization of professional revolutionary intelligentsia, would indeed be the sinister cornerstone of an elitist doctrine that many see it to be. At times Lenin does stray into this meaning of the terms, especially when seeming regrettably to make a virtue of the necessary limitations of internal democracy imposed on a revolutionary organization by illegality and the need for secrecy.
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REVIEW OF LITERATURE Organizing is a study of collection the available resources, charting and chalking out their orderly uses and finally accomplishing the preset organizational plans by structuring tasks. In the word of Chester Bernard, an organization is a systematic of consciously coordinated activities or efforts of two or more persons. In other words, it can be called as a cooperative system in which people gather and formally agree to combine their effort for a common purpose. According to LOUIS ALLEN Organization is the process of identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationship for the purpose of enabling people to work most efficiently together accomplishing objectives. Management s not only important from the companies point of view but it is required in each and every activity one can think of. Management comprises directing and controlling group of one or more people or entities for the purpose of coordinating and harmonizing that group to wards accomplishing a goal. Management often encompasses the deployment and manipulation of human resources, technological resources, and natural resources. Management operates through various functions, often classified as;
1. 2. 3. 4.
Planning Organizing Leading/motivation Controlling
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According to F.W. TAYLOR management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way
According to HENRY FAYOL To manage is to forecast and to plan, to organize, to command, to coordinate and to control
OBJECTIVES OF THE STUDY
1. To study the organization and management of divgi industry. 2. To study production process of divgi industry. 3. To study labour and capital of divgi industry. 4. To know the history of divgi industry. 5. To know the infracture facility of the divgi industry METHODOLOGY AND PROJECT DESIGN
Research methodology is a systematic way for solving any research problem. Its a science of any thing how research is done scientifically. It studies the various steps that are generally adopted by a researcher in studying the research problem. Source of data collection:
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Primary data The primary data are those which have been collected fresh for the first time and thus happen to be original in character. The primary data collection involves the collecting of information from the first time by observation, experiment, and questionnaire and through interview schedule in the original form by the researcher himself or his nominees. Secondary data These data are those data which have been collected by some other and which have been processed. Generally speaking secondary data are information which has been previously collected by some organization to satisfy its own needs but the department under reference for an entirely different reason using it. There are two sources for secondary data; 1. Published data: data that is already available in books, magazines, trade journals, newspapers, report prepared by research scholar etc 2. Unpublished data: this is not published. It can be found in unpublished autobiographies, some govt. aspects and private individual organizations.
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STUDY AREA The researcher intended to study in sirsi taluk of uttarakannada district of Karnataka state. Divgi Industries Private Limited (DIPL) is situated at Banavasi Road, Sirsi. It is a medium scale engineering industry of prestigious city SIRSI. DIPL was incorporated in the year 2000.Its actual commercial activities started in April 2003.
PERIOD FOR THE STUDY This study is mainly for the purpose of partial fulfillment of BBA study. The allotted time is very less only one month. Study is started from 9th December 2012 and ends in 9th January 2013.
SCOPE OF THE STUDY Importance or area of study: to study the problems and suggestions The studies throw various aspects of organization and management such type of very useful to know organization and management and also to overcome the problem of organization and management. It is very useful to the entrepreneur to under stand the nature and working of organization and management and also to adopt innovative methods. By that to reduce cost of production and to also to improve the quality of the product and to get maximum benefit.
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LIMITATIONS OF THE STUDY
The study is limited and may not applicable in all places in all time because of the study is confined to a various limitations:
a. DIPL depends completely on Divgi Warner Pvt. Ltd (Pune) for procurement of raw materials & supply of finished goods. b. Limited study area, the study is conducted sirsi uttarkannada district. c. Limited time, the study is only one month 9th December2012 to 9th January2013. d. Another Limitation is that limited resources. e. Lack of co ordination is the one more limitation of this study.
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CHAPTER SCHEME Chapter-1 1. Introduction 2. Statement of the problem 3. Review of literature 4. Objective of the study 5. Methodology a) Source of primary data b) Source of secondary data c) Study area d) Sampling for the study e) Period of study 6. Scope for the study 7. Limitation for the study Chapter-2 Nature and growth of auto component industry 1. Nature and growth of auto component industry in world 2. Nature and growth of auto component industry in India 3. Nature and growth of auto component industry in Karnataka Chapter-3 1. Company profile 2. Product profile

Chapter-4 Departmental study 1. Purchase department 2. Stores department 3. Manufacturing department 4. Human resource department 5. Quality department 6. Computer aided design department 7. Finance department 8. Maintenance department Chapter-5 1. Summary 2. Findings 3. problems 4. Suggestions 5. Conclusion 6. Bibliography
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CHAPTER -II
NATURE AND GROWTH
Auto Components Market Strong growth in the domestic automobile industry and a stable 10-15% future growth outlook over the next two years would drive demand for auto components both in the domestic OEM and the aftermarket. Exports too are in a scale up mode for leading players like Bharat Forge, Amtek Auto and MICO. We believe, a slowdown in key global markets and the fragile financial health of global OEMs as also Tier-I vendors would lead to higher outsourcing by these players to low cost auto component players in the long term. We expect 15% revenue CAGR and 22% earnings CAGR for our auto component universe over FY07-09 led by strong revenue and earnings growth for Bharat Forge, MICO and Balkrishna Industries over the same period. Domestic growth on a firm footing, exports looking up: It is expected that domestic revenue for auto component companies will remain strong given a stable 10-15% volume growth outlook for various auto segments. Exports for leading players, too appear to be scaling up and a slowdown in key global markets and fragile financial health of global OEMs and Tier-I vendors will only accelerate the pace of outsourcing to leading auto component players in Low Cost Countries like India. Amtek Auto has successfully implemented the strategy of acquiring customer base overseas and outsources the labor intensive operations to its low cost Indian facilities.
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Expect strong earnings momentum for leading players: The expected revenue CAGR is 15% and earnings CAGR is 22% for auto component market over FY07-09 led by strong growth for Bharat Forge, MICO and Balkrishna Industries Strong growth outlook for domestic auto OEMs to boost demand While auto component companies retain focus on enhancing their overseas revenues, their domestic businesses too appear on a firm footing with buoyant growth outlook for the domestic auto OEMs. Favorable demographics along with very low vehicle penetration indicate strong long-term demand prospects for cars and two-wheelers. Strong growth in industrial production, emergence of new growth drivers like organized retail, and the ongoing pace of investments and infrastructure development in the country would drive demand for commercial vehicles. While factors like higher interest rates and a higher base could check growth rates in the near term, the industrys prospects nevertheless remain strong. NATURE AND GROWTH OF AUTO COMPONENT INDUSTRY IN WORLD
The global auto component industry experienced moderate growth over the last five years and is expected to continue its growth momentum reaching approximately $730.8 billion in 2017 with a CAGR of 3.2% over next five years (2012-2017). APAC is anticipated to emerge as the leading growth market over the forecast period due to high demand and low-cost manufacturing

practices in the region. Lucintel, a leading global management consulting and market research firm, has analyzed the global auto component industry and presents its findings in "Global Auto Component Industry 2012-2017 Trend, Profit, and Forecast Analysis." The global auto component industry is a highly diversified sector that involves engine and auto component manufacturers; including aftermarket parts manufacturers, suppliers, dealers, and retailers. Features and Scope To make any investment or strategic decision, you need adequate and timely information. This market report fulfills this core need. Some of the features of this market report are: a. Industry size estimates in terms of (US $) value by region and by segment b. Global auto component industry analysis annual trend (2006-2011) and forecast (2012- 2017) c. Porter's Five Forces analysis d. New product launch and merger and acquisition activity in global auto component industry e. Quarterly demand trend (Q1 2010 to Q4 2011)and forecast analysis (Q1 2012 to Q4 2012) for global auto component industry f. Gross and net profit trends in the global auto component industry g. Cost structure trend in the global as well as regional auto component industry
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Industry Analysis & Industry Trends The Global Auto Parts & Accessories Manufacturing industry cannot exist without motor vehicle production. Over the past five years, motor vehicle production has been supported by furious growth in China and other developing economies. Incomes in China have risen, which has created new demand for motor vehicles. Motor vehicle manufacturers began opening plants to satisfy demand, and parts manufacturers soon followed. A rise in the number of vehicles in use globally also been supported the aftermarket parts segment. However, skyrocketing fuel prices and stringent emissions regulations have slowed global demand for new motor vehicles, which has flowed on to slowed automotive parts and accessories revenue. Industry SWOT Analysis The Global Auto Parts & Accessories Manufacturing industry is in decline in mature economies such as the United States, while it is enjoying a growth phase (nearing maturity) in emerging economies. The majority of the rise in industry establishments over the 10 years through 2017 is due to the explosion of the automotive sector in China. The story is completely different in the United States, for example, where companies are going bankrupt, being acquired and consolidating furiously to survive. Global companies have been able to hedge against domestic downturn by expanding into new locations such as China, India, Mexico, Brazil and Russia Indian auto component industry has seen some silver lining with exports, which continues to grow at 15-20%. However, some of the domestic players say, although the first quarter was good for exports, there are signs of

slowdown in the international market too, especially in the Asia-Pacific region. We are glad that exports in 2012-13 continue to be robust despite the global economic turmoil. Our exports stood as $6.9 billion in 2011-12, growing 33% over $5.2 billion in 2010-11. We expect exports to continue to grow at around 15% this year, which is somewhat slower than that of the last year. Europe, especially Germany, with 35% share continues to be our largest export destination followed by the US with 23% share. Interesting, 80% of our exports are to the OEMs, which is a testimony to the global acceptance and recognition of India manufactured auto components.
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NATURE AND GROWTH OF AUTO COMPONENT INDUSTRY IN INDIA The auto component industry has come of age and now forms an important component of the Indian economy. In recent years, it has grown more impressively, fetch double digit growth. More interestingly, it has captured attention as well as business from leading auto makers of the world. The industry plays a crucial role in the automobile sector. Manufacturing vehicles typically involve assembling a large number of components out-sourced from number of ancillaries or component manufacturers. Competitiveness with quality as a theme has been the watchword for the Indian industry and especially the auto component industry ever since the Indian economy was opened up to the world in the early 1990s. While economic revival, lower interest rates and better road infrastructure are driving domestic demand for automobiles and, therefore, components, increasing outsourcing by global automobile majors is creating a huge export opportunity for Indian component manufacturers. Industry dynamics The Indian auto components industry started out small in the 1940s supplying components to Hindustan Motors and Premier Automobiles, two largest manufacturers of automobiles in India at that time. In the 1950s, the arrival of Telco, Bajaj, and Mahindra & Mahindra led to steadily increasing production. A closed market with high import tariffs characterized the Indian auto component industry pre 1985. 1985-91 saw significant JVs in the Indian auto component segment with Japanese manufacturers. After 1991, the
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delicensing of the sector led to global auto manufacturers initiating assembly operations in India. Industry into the following product segments: i. Engine and engine parts: Pistons, piston rings, piston pins, gaskets, carburetors, fuel injection pumps, etc. ii. Drive transmission and steering parts: Transmission gears, steering gears, crown wheels and pinions, axles, wheels, etc. iii. Suspension and braking parts: Leaf springs, shock absorbers, brake assemblies, etc. iv. Electricals: Spark plugs, starter motors, generators, distributors, voltage regulators, flywheel magnetos, ignition coils, etc. v. Equipment: Dashboard instruments, headlights, horns, wipers, etc. vi. Others: Fan belts, sheet metal parts, plastic moldings, etc.
The major players in the auto ancillary industry can be classified between the ones catering to the two wheeler industry and the four wheeler industry. MICO, Bharat Forge, Sundaram Clayton, Sundaram Brakes, Rane Brakes, etc. mainly cater to commercial vehicles/tractors. There are many companies like Ucal Fuel, Motherson Sumi, PRICOL, Subros, etc. which supply mainly to car industry. Companies like Munjal Showa, Lakshmi Auto, Omax Auto, etc. cater to two-wheelers.
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Sectoral Performance The auto-ancillary was the best performing sector among the intermediate goods. Different segments of the sector such as bearing, casting, fasteners, batteries and tyres have grown in a range of 25-40%. The main reason for boost in export is that the nature of the customer base of overseas market has been undergoing major change. Indian companies are transforming into principal suppliers for the Original Equipment Manufacturers (OEMs) from the after sales market or replacement market. The company has facilities for manufacturing patterns, centrifugal castings of phosphor bronze rings, ferrous castings, aluminum castings, heat treatment, forging, fabrications and cutter manufacturing in-house which constitute the major raw materials for gearboxes. Future Outlook Given the significant scale up of capacities by the domestic majors, and their improving global cost effectiveness, the domestic auto ancillaries are well set to sustainable scale up their share of the global auto component pie. The players are aggressively focusing on new client acquisition, inorganic growth in developed countries and cost reduction measures on fronts like quality, delivery, design and management. Growth in the domestic market would be driven by sustained growth in supplies to OEMs as well as acceleration in the demand from replacement market. Moreover, cars, utility vehicles and CVs made in India are increasingly getting acceptance in foreign markets, thus driving the demand further. Even Indian two-wheeler majors are targeting markets abroad.

Simultaneously, foreign auto majors like Ford and Hyundai are making India its manufacturing base for several models. Overall, the short to medium term outlook for the domestic auto component producers is positive. Automobile industry, which is a key driver of auto-component industry, is likely to grow at 12-17%. Along with this some other key drivers including exports, outsourcing, and replacement market are slowing down competitiveness in global markets in turn boosting the productivity of Indian auto components industry. Hindustan Composites is planning break lining and clutch facing unit near the proposed Tata Motor plant at Singur in Hooghly district of West Bengal. The company has already started discussion with few tier 1 component manufacturer of Tata Motors in this regard The company is planning to tie up with an outfit which is likely to be entrusted with for the break assembly of small car. Tata Motors is overhauling its outsourcing policy across all categories of cars. As part of this policy, which is aimed at keeping costs under control, the company has taken a conscious decision to move away from the multiple vendor models to a single vendor model.
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The world's top car makers turn to India for the nuts and bolts of their vehicles. Riding this success, and capitalizing on the spiraling demand of domestic auto companies, the Indian automobile components industry has emerged as one of India's fastest growing manufacturing sectors, and a globally competitive one. A number of them source critical components from India, with engine parts making up nearly a third of all exports:
Electrical Parts Equipments
10% 20% 13% 33% 13% 11%

Engine Parts Suspension & Braking Parts Body And Chasis Drive Transmission & Steering Parts
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NATURE AND GROWTH IN KARNATAKA The State of Karnataka is bounded by Maharashtra and Goa States in the North and North-West; by the Arabian Sea in the West; by Kerala and Tamil Nadu States in the South and by the State of Andhra Pradesh in the East. The State extends to about 750 kms from North to South and about 400 kms from East to West, and covers an area of about 1,91,791 sq.kms. Karnataka accounts for 5.83 percent of the total area of the country (32.88 lakh sq.Kms) and is the eighth largest Indian state by area, the ninth largest by population and comprises of 28 districts. Bangalore is the capital city of the State and is at the forefront of the rapid economic and technological development. Kannada is the official and most widely spoken language.
The State is blessed with a fair share of natural resources an extensive river systems that aids power generation besides sustaining agriculture, a wide spectrum of minerals ranging from iron ore to limestone, granite to gold, a temperate climate conducive to growth of agriculture as well as industry besides a 320 km long coastline which supports a flourishing marine industry
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Present Scenario & Strengths The growth drivers for the development of the sector are the rising income levels and higher disposable income, rapid urbanization of population and growth in semi urban areas. Globally the auto component industry is set to grow at about 3% till 2015 with 635 of growth coming from emerging countries. India has opportunity to capture major portion of the outsourcing deal in the next decade. Termed a priority sector, auto and auto parts hold the key to economic growth of the state. This is an industry where the small and medium enterprises (SME) can showcase their mettle; concentration on auto components by itself can accelerate the growth. Potential & Opportunities
1. 2. 3. 4.
The fourth-largest State in Automotive production in India. Produces more than a quarter of Indias Aircraft and Spacecraft. One of the largest Foundry industry clusters at Belgaum. Indias first Aerospace SEZ operational at Belgaum.
Prime Locations of Business The main locations for automobile industries and the resources available are at Bangalore Rural, Ramanagara, Kolar, Dharwad, and Belgaum.
Karnataka Industrial Areas Development Board (KIADB) is developing an industrial area near Bidadi in 442 acres mainly to promote Automobile & manufacturing Industries.

Major Players
Bosch
Toyota Kirloskar Motor Ltd
TVS Motors
Volvo
Tata Motors
L&T Komatsu
Vikrant Tyres
BEML
Escorts
Reva Electric Cars
Exports: The Exports of auto components grew to USD 5.2 billion from USD 3.4 billion in 2009-10. Europe accounted for 36% of exports followed by Asia and North America at 28% and 23% respectively. Although the proportion of exports to Europe declined from 40% last year to 36%, however in absolute terms the exports grew by 46%. Exports to North America and Asia grew by 65% and 48% respectively. With exports to North America,

Europe Asia and other parts of the world are improving, a full recovery of exports are expected to gain strength in 2011-12.
Imports: With growth in the domestic market, imports of auto components also grew by 30% to USD 8.5 billion from USD 6.5 billion in 2009-10; almost 85% of the imports were accounted for by the OEMs, the rest 15% by the aftermarket. Asia and Europe contributed to over 56% and over 35% of the imports respectively. Within Asia, China, South Korea and Thailand contributed to the maximum imports to India while from Europe the key contributors were Germany, Italy and Czech Republic. The quantum of imports has also increased due to several FTAs and other trade agreements signed by the Government.
Capacity Addition: The auto component industry added capacity in the range of USD 2 -2.25 billion in 2010-11 in several green-field as well as expansion projects. The cumulative investment (gross-block) in the auto component sector in India over the last five years stood at over USD 6.5 billion. The industry is expected to add at least another similar number in capacity addition 2011-12.
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Potential / opportunities: There is a huge potential in the automobile in Karnataka. The component industry caters to OEMs (all kinds of automobiles such as trucks, cars, SUVs, LCVs, buses, two-wheelers, and tractors) and exports. With major international OEMs having manufacturing facilities in Karnataka, supply to them from within the country and this region in particular, has given the sector a huge impetus. Components are also being supplied across India to other OEMs from Karnataka. There is a potential to get into the global supply chain of international OEMs and a subsequent direct export to the after market and other OEMs globally. Sl.No Sector No. of Units Established 1. Small Scale Industries 2. Medium Scale Industries 3. Large & Mega Industries 21 8682.62 13,331 194 2499.96 45,703 93,845 3008.78 4,44,259 Investment in Rs. Cr. Employment in Numbers
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CHAPTER-III
COMPANY PROFILE
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Company Name: DIVGI INDUSTRIES PRIVATE LIMITED Registration no.: MY-NK-255 Founder: late shree R.N. Divgi Address: Divgi industry Sahyadri colony Sirsi (U.K)-581902 Status: Domestic Company Nature of business: Ancillary unit of manufacturing spare parts Type of industry: medium scale industry Total area: 27 acres Building area: 1000 meters Directors: Mr. Jitendra .B. Divgi Mr. Hirendra .B. Divgi Mr. Bharat.B. Divgi Total no. of workers: 92 Total no. of labors: 68
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Assets of company: 1. Tools 2. Mobile/ telephone 3. Machinery 4. Electrical fitting 5. Computer 6. Furniture 7. Air compressor 8. Camera 9. Fax machine 10.Xerox machine Total type of machinery: 26 Total no of machinery: 54 Average job doing per day: 5000 jobs Water used per day: 2000 liters Coolant oil used per month: 50 liters Fuel (diesel) per month: 100 liters
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Infrastructure: The company has acquires building and machinery on an annual lease from DWPL. It has vast area with 27 acres of land in which the built up area is 6501 square meters. The company has acquired infrastructure resources as bellow:
1. Adequate building and amenities. 2. Manufacturing and measuring equipment necessary to relies and supply 3. Conforming product. 4. The maintenances of machines is conducted through
preventive and 5. Predictive maintenance. 6. Support services such as an adequate communication and transport facilities 7. Are available. 8. During management review meet ,realization plain , the need of
additional infrastructure requirement as necessary are discussed and Further actions are taken.
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Organization chart of DIPL
Managing director
Assistant manager
MR department
HR department
Purchase department
Account department
Store department
MDT
QA head Cell supervisor
Assis tanc e
QA inspector
Operator Maintenance Assistance
Helper
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History of the industry It was corporate in the year 2000 but its commercial transact was started in the year April 2003 by acquiring assets like building, plant and machinery from Divgi Metal Wares Pvt. Ltd. It is certified with ISO/TS-16949 quality system in the year 2005. Nature of business DIPL is an ISO/TS-16949 quality certificate company since 4th oct.2005. it is registered under registration of companies at Bangalore. Their main banker is Indian overseas bank. DIVGI WARNER PRIVATE LIMITED is the main customer of DIVGI INDUSTRIES PRIVATE LIMITED. The Business carried on by a company is manufacturing of components required for assembly of transfer case and auto locking hubs. Brief history of the company 1995: JV formation between divgi metal wares, India and borg Warner torq transfer system, USA established in pune. 1997: first transfer case developed for TATA motors. 1998: transfer case developed for Mahindra; new production facility at sirsi. 1999: commenced exports with the automatic locking Hub for US after markets. 2000: pune plant archives QS 9000 certification. 2001: transfer case development for Chinese OEMs. 2002: sirsi plant archives QS 9000 certification

2003: commenced business with Borg warner, senesce 2004: increased value added sourcing initiative from India to Borg Warner locations takes off. 2005: both facilities achieve TS/16949 CERTIFICATION transfer case proto type successfully validated for ford Mazda business in Thailand beginning 2006. 2007: improve the products and production different ranges of products. 2008: the company had applied for the certification of EMS (environment management system) 1400 and healthy safty 18000. 2009: won chairmans products innovation award. 2010: Add 2 nos of New CNC Machine in Machine shop. 2011: Best Supplier Award. 2012: Synchro Product Developed.
VISION: To be catalytic and innovative organization in the society that supplies goods and services that are of superior value to those who use them, create jobs that provide meaning for those who do them and offer our talents and wealth to help and reward all who invest in us their time, money and trust.
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MISSION: DIPL is to assist their customer seek new frontiers of
value for the continuously evolving needs of a globalization, market place in so doing ,they seek to bring unique distinctive and superior value to those who use their production and services. They seek to provide their customers a continuous source of innovation by anticipating change and shaping it to our purpose. QUALITY POLICY: At DIVGI they endeavor to perceive excellence in all spares of their business activity through a process of continuous improvement they see world class quality in their products and services to consistently meet or exceed their customers
expectations and achieve leadership in the market they serve. They committed to a high standard of motivation competency and innovation in their people who they believe on essential to the pursuit of excellence. GOALS: To become Indias permanent and preferred technology increate based solution provide in automotive transmission and power train application for on and off highway usage to achieve world class standard in all spares of their business activities.
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OBJECTIVES: 1. To manufacture, process, treat, buy, sell, import, export, exchange after improve manipulate report. 2. To carry on the business of engineers, contractors, builders, filters, founders, wire drawers etc 3. To own, run, manage and carry on the business of workshop. 4. To carry on the business as technical advisers, consultants for any other person or person interned in or carrying or any of the business, as similar to or connected with the objects of the company for such terms and conditions as are beneficial to the company.
ORGANISATIONAL PURPOSE: 1. To pursue excellence in all spheres of our business activity through a process of continual improvement. 2. To produce detect and hassle free quality products and services to meet or exceed expectations. 3. To attain market leadership. 4. Commitment of high standards of motivation and 5. Competency that is essential to the pursuit of excellence.
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PRODUCT PROFILE The company manufactures mainly the following spare parts of automobile industries. 1. 4 W D technology and products. 2. Manual transmission technology and products. 3. Synchronizer technology and products.
The company also manufactures the spare components required by a transfer case. The raw-materials required to manufacture these components are procured from Bhosari, Pune. Transfer Case: They are used in 4*4 vehicles. It includes several items Made up of steel. Shafts: 1. Upper output shaft 2. Lower output shaft Yokes: a. They are classified as single chorden and double chorden, b. Those are supplied to Mahindra &Tata Motors. Also c. Exported to Borg Warner Torq Transfer Systems.
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Front Adaptor: It is an item made up of aluminum. Gear: These items include: 1. San gear 4426/1350 2. Sprocket drive 3. Sprocket driven 4. Pinion Gear 5. 1st 2nd 3rd 4th gear 6. CF - 006 7. NGT 530 Functions of Transfer Case1. To convert 2*2 drive into 4*4 drive. 2. To amplify Torque.
Flange Cell: In this cell, different kinds of flanges are manufacturing using CNC machines. Here some of those are companion flange 006, companion flange 030 etc. In this cell, there are different machines those are CNC turning machine, broaching machine, drilling machine, punching machine etcThe proper coolants are always used for reducing the tool wear because in the cutting zone, high temperature is producing.

Shaft Cell: In this cell, manufacturing shaft which is used in the transfer case. In the shaft cell, we saw different types machines, those are CNC machines, VM machine, deep hole drilling machine, conventional lathe, thread rolling machine etc.. PROBLEMS: Of set problems Tool breaking Power problem Rough surface Usage of unsuitable oils and coolants Improper holding of the job Fricton and tool wear.
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Shafts:
Gear:
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Companion Flange:
Yokes:
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CHAPTER-IV Title of the study:- A Study on organization and management with reference to Divgi Industries Private Ltd. SIRSI. DEPARTMENTAL STUDY OF DIVGI INDUSTRIES A department refers to the process of grouping activities into departments. Division of labor creates specialists who need coordination. This coordination is facilitated by grouping specialists together in departments .A department is a part of a larger organization with a specific responsibility. For the division of organizations into departments, see departmentalization. The term "department", in other contexts, means an administrative sub-division of a larger organization. The Department of Organization's research and teaching are based on the managerial and organizational processes in private, public, voluntary and other organizations. Our goal is to create and disseminate new knowledge about organizational processes that are applicable and that may inspire business executives and others to work with new organizational structures. 1. Purchase department 2. Stores department 3. Manufacturing department 4. Human resource department 5. Quality department 6. Computer aided design department 7. Finance department 8. Maintenance department

PURCHASE DEPARTMENT: Purchase function covers all activities related to
procurement of raw materials and other
materials of the with planning,
company. The purchase function is to interact stores,
production, and quality control and finance department
whenever necessary. In charge of purchase department is responsible for all the activities related to the procurement of materials
in the company. Functions: 1. Evaluate 2. Prepare a the suppliers list of evaluated suppliers who meet the
company requirements and update it if the new supplier is added. 3. Receives the purchase requisition from the stores. the
4. Identify the supplier, place the enquiry and receive quotation from approved 5. For purchases bellow suppliers. Rs. 500/the purchase exceed
order may not this amount
be realized. Only if P.O is made. 6. In
purchases
case urgency /emergency material approval from the C.E.O
may be
purchased
on verbal 7. Prepare 8. Monitor
/ director. to supplier.
and place the on timely
purchase order
delivery
of the materials. received; check the
9. Ensure the quantity of verifications activity to
materials
accept the materials.

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10.Release the payment 11.Carry out 12.Suggest to the suppliers. suppliers.
the supplier rating quarterly to the the supplier to improve requirement. specifies the supplier, from
in case, supplier rating
does not match to the 13.In case if customer
the
department procures the material source only. purchased
customer approved
14.For any materials receipt P.O supplier rating
in an emergency within the
purchase
shall be made
working days
is done once in three months.
15.Prepare the list of supplier who meets the company requirement. 16.Receive the purchase requirement from the store. 17.Identify the supplier place the enquiry& received the qualitative item from the approved supplier Prepare & plan the purchase order to the supplier 18.Monitor timely delivery of the materials. 19.Ensure the quality of material 20.Release to the payment to the supplier. Criteria 1. Easy 2. Prompt for selection of materials: availability delivery
3. Competitive price 4. Consistent quality.
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STORES DEPARTMENT: The main consumables, production The stores accessories function and of stores department is to issues receipts of FIFO the same to the slip.
department on the department
requirement
follows
system. This business
process procures raw material / products / consumables as per procurement plan based on production requirement schedule. They also procure indirect parts / products / consumables or services needed for all other processes. This business process receives and preserves the raw material till it is consumed during manufacturing. STRUCTURE OF STORES DEPARTMENT:
Managing director
MR
Stores in charge
Assistants
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The two types of items under the stores department are: a. Billable items b. Non- billable items a. Billable items Billable items are those, which are procured from outside sources. They include machine spares, gear parts, tool holders, cutting tools, grinding mills and consumables. b. Non- billable items Non- billable items are the items, which are procured Bhosari (Pune). They include forging (shaft, flange), gear blanks, sun gear, ring gear, hub reduction, sprocket drive, sprocket driven, hub sleeve etc. The Key performance indicator of stores departments is Material Yield stores are divided into: 1. Forgings 2. Consumables FORGINGS: In case of forgings following procedure is to be followed: On the receipt of placed in raw materials from DWPL, material is confirms the received quality against
proper bin and
delivery chalan. Enter the received
quantity GRR (goods received
register) and stock register. If any short or excess material is found,
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then it is mentioned in GRR and inform to the customer immediately. Measure the forging weight as per sampling page. Enter into GRR. Issue bin card and ensure bin cards are attached to the respective bins. Ensure the forgings are properly stored in bins. If any empty bins are not available, place the forgings on card board sheets, cover plastic and attached the bin card properly. Take clearance from the quality department for incoming goods inspection. Issue forgings / raw materials for production by strictly following FIFO method. When incoming forgings are released for urgent production, they
are positively identified and recorded to permit recall in the event of nonconformance to specified requirements. On consumption of GRR prepare delivery chalan. Ensure materials being dispatched to the customers. Prepare a consolidated statement of the total quantities dispatched, total rejection and total forgings defect quantities and then submit a copy to the accounts department. Monitor and measure the materials yield % at the end of every month. Stock and product verification is conducted once in three
months.Maintains the department, record properly.


CONSUMABLES: For any requirements for concerned department, conforms inventory,
counter sign purchase receipt if material is to be purchased. On the receipt of consumables clearance. Consumables key. Machinery spares are stored in steel cupboards under lock and key with proper identification. are make GRR and then make the kept in storage area under lock and
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MANUFACTURING DEPARTMENT: This business process manufactures product as per production orders released by planning. They follow the entire standard, i.e. quality and process to realize the products. They assist manufacturing engineering to establish the new manufacturing process. They develop various job/ work instructions to guide operations to perform better and better. They plan and accomplish manufacturing of products so that customer requirements are fulfilled. This business process ensures maintenance of manufacturing fixtures and tooling required for product realization. DIPL manufactures different shafts and sun gears for gear types box of yokes, flanges,
assembly.The different
processes undertaken
for manufacturing.
This business process receives
customer schedule details from marketing considering inventories at raw material, work-in-progress and finished goods, they prepare production plan is a base for manufacturing process. This business process also controls outsourcing of products/ processes. This process strives for 100% on time delivery performance of company. Responsibilities and Authorities of Production, Planning and control: 1. Prepare dispatch plans / schedules based on scheduled requirements. 2. To co-operate with Bhosari ( Pune ) for the following: a) Raw materials b) Tooling / insert s c) Mobilizing empty trays for material handling d) Preparing dispatch schedule

Raw materials
Receive raw materials from the customer Customer controlled area defective material with LRN and DC to be gives to customer stores
And issue bin cards and ensures bin card is attached to the respective bins
Receiving DC from customer and enter in the bin and stock register respectively
End of every month associated statement of production QTU of components dispatched LRN Qty and foraging defective qualities submit to DIPL A/c and copy to customer stores
Covered and selected ensure scaled bins are not tampered
Daily dispatch quantity as per issue slips and defective materials make separate DC with
Issue the full bin Qty to production its per FIFO system
Keep received of daily production status of finished materials and defective materials
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Process flow chart
RECEIVE FORGINGS
ROUGH TURN 1ST SIDE
ROUGH TURN 2ND SIDE OPERATION
FINISH TURN 1ST SIDE OPERATIO N
OPERATION HOBBING
OPERATION D PUNCHING
OPERATION BROACHING
FINISH TURN 2ND SIDE OPERATIO N
OPERATION EXTERNAL TEETH
OPERATION DEBURRING
OPERATION SHAVING
FINAL INSPECTIO N
DISPATCH TO DWPL SIRSI
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CONSUMABLES
Receive consumables from the supplier
Prepare GRR ENTER IN THE GRR REGISTERANDSTOCK REGISTER RESPECTIVELV
CLEARED GRR TOTAL ACCOUNT SUBMIT TO THE ACCOUNT DEPT
RECEIVE MATERIAL TO BE KEPT IN DENTIFIED PLACE WITH PROPER PRESERVATION
SUBMIT REGISTRATION LETTER TO THE PURCHASE DEPT
ISSUE THE MATERIALS AGAINST ISSUE SLIP
MAINTAIN STOCK PROPERLY REGISTER LETTER TO BE RECEIVED FOR THE REQUIREMENT BY THE DEPT HOD
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TURNING: ROUGH TURNING: This is an operation in which maximum turned by using different types of materials is being
cutting tools, maintaining the
stock 0.5 -0.7 MM materials at all surfaces for finish turning. FINISH TURNING: In this operation carried out by finish turning of the work piece is being using different types of cutting tools. Required in this process.
surface finish, chamfers, grooves are generated BROUCHING:
It is an operation in which the required spines are
being operation
generated by using a special tool called broach. In this broach is in the at required HOBBING: Gear
work piece with the help of byduaulic pressure
feed rate.
teeth are generated in this operation by using at one
special tool called hobbing. In this process the cutter rotates along with the depth and then setting.
work piece at advance into the cutter at required the cutter moves upward or downward as per the
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SHAVING: Shaving is an operation in which gear teethes is done by, removing 0.1 0.22MM depth of cut by using a tool called shaving cutter. In this operation the cutter rotates at one axis and work piece is advanced into the cutter. MILLING: Milling is an operation in which forms, slots, key words are generated by using special tool called milling cutter. In this operation cutter rotates at one axis and the work piece advances towards the cutter. Coolant oil is used to eliminate the heat generated during turning operations. On an average 5000 jobs are
done per day. Being pushed Issue consumables on receiving materials receipt per day.Maintains inventory level properly. Inventory management system is good. In the history of DIPL work stoppage has not taken place due to raw materials storage. Responsibility and authority of manufacturing 1. To take the work in progress statement for production material with in the plant 2. To negotiate and finalize rate for scrap and to take approval from operation. 3. Prepare dispatch plan/ schedules based on scheduled requirements. 4. Organizing dispatch co ordination with individual engineer for component for final inspection and further dispatch.
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HUMAN RESOURCE DEPARTMENT: The principle component of an organization is its hr or people at work. It is which success of an organization. It is the phase of management which effective control and use of man deals with the is of paramount importance in the
power as distinguish from other
sources of power. This department is managed by the HRD of the department. He is responsible for the over all functioning of department. OBJECTIVES 1. To recruit the candidate to the organization 2. To select best among them 3. To maintain all the records by employees related to attainder leave, training 4. To maintain a proper infraction between the employees 5. To check the employees performance of the end of the working year 6. To apprise the performance of the employees 7. To motivate the employees to get maximum output 8. To give the proper training to the employee. Induction Training Programme At Divgi Warner Private Limited four days induction training programme is conducted for all new employees. All new employees must undergo an induction training programme. The
the

purpose of induction training programme is to ensure that the new employee gets familiar with the companys day -to-day operations. Cleanliness of Premises: HOD (HR) ensures that premises are neat & clean. Any material available is neatly placed & duly identified. Any repairs to building & infrastructure required to fulfill product & manufacturing process needs are timely carried out. Any material is promptly removed. Every month, any deterioration in material is brought to notice of CEO for further actions. Functions: 1. To organize necessary training programs. 2. Assist HOD for human resource acquisition.
3. Maintain all statutory requirements on time, as given out in Gazette notification and government orders from time to time. This also involves compliance and renewal of various licenses under Factories Act, 4. Minimum Wages Act, Payment of Wages Act, Workman Compensation Act, Gravity Act etc..
5. Maintain records of employees including attendance, leave and training records. 6. To collect training needs through skill functions 7. Up keep and prepare training plan. of premises. company vehicles.
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matrix from various
8. Arranging and up keeping of


9. Providing work and maintaining a conducive atmosphere for
and enhances performance
of employees. motivating the employees.
10.Conduct programs which helps in Induction training program: At DIPL 2
Days induction training program is to ensure with day to day
that the new employee gets familiar operations. Employee training: 1. Basic job training. 2. General training 3. Further training. Basic job training: All employees will be
trained in the operation of function. Before using
machinery and equipment specific to their
such machines or equipments, employees are to be informed of the hazard that is likely to occur.
General training: All employees will be briefed and received training in the following: 1. Accident prevention equipment. 2. Accident reporting.
in the operation of machinery and

3. Good house keeping. 4. Company safe 5. Responsibilities under the current safety, health and environment legislation. Further training: 1. On side emergency plan 2. Emergency skill. 3. Safety, health and environment audit. Recruitment policy in DIPL: 1. Need based. 2. Management view regarding further requirement. Need based recruitment: It is done by advertising in the news paper or by selecting any candidates on the basis merit if he /she are known to DIPLS employees. Selecting candidates is based on their
experience, qualification and performance in the interview. Candidates are interviewed by the executive based on the qualification of the candidate. Management decisions: Candidates are also recruited by management decision. Deceased employees dependent are also recruited as a special
case mainly keeping in mind the future developments.
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While recruitment for the post of operator, cleaner, driver, and his experience, age and physical fitness for the post is considered. Management representative: 1. Maintained in accordance with ISOL TS 16949 requirements. 2. Authorized for issue and withdrawal of quality system documents. 3. Conducting management reviews. 4. To maintain the departmental record. Customer representative: 1. For interacting with customer on special characteristics and communicating the details of interaction to the concerned personal of DIPL is also responsible to collect the customers engineering drawings. 2. Interaction with customer for delivery schedules and on time delivery of products to the customer. 3. Resolving customer results. The company is achieving through key performance indicators (KPIS). Top management has defined measurable KPIS
for each business process which are also quality objectives for the company. Each business process Owner utilizes multi disciplinary action approach to measure and analyze the data and information to arrive at a
action plan which is implemented and reviewed every month.
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This monthly review also serves as one activity to
improve and maintain internal communication. These key performance indicators are for objectives overall functioning of business processes. Quality are displayed within the organization through KPIS.
Selection process on DIPL It is a long process in DIPL commencing from the preliminary interview of the applicant & ends with the contract of employment selection in DIPL is centralized & is handled by the personnel department Table 4.1 NO OF EMPLOYES SL.NO . EMPLOYEES NO.OF EMPLOYE S 1 2 3 4 Staff Technical Staff Operator Helper Total 07 11 68 06 92 07.60 11.95 73.92 06.53 100.00 PERCENT AGE
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Total
80 60 40 20 0 helper operator staff 6.53 7.6 11.95 Total 73.92
technical staff
Interpretation:This diagram indicates that no. of employees working in DIPL. It can be divided into 4 types they are staff (7), tech. staff (11), operators (68) and helpers (6). Operators are more than other staff. Table 4.2 LABOUR CLASSIFICATION
LABOUR CLASSIFICATION
NO. OF LABOUR
PERCENTAGE
Skilled labor Un skilled labour Semi skilled labour
20 11 37
29.41 16.17 54.42
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Total 68
Total
60 50 40 30 20 10 0 54.42
29.41 16.17 Total
semi-skilled
Total skilled un skilled
Interpretation:In DIPL, the labours are classified on the basis of their skills. They are skilled, unskilled and semi-skilled. The semi-skilled labours are more as compare to skilled and unskilled labours. Table 4.3 SALARY ALLOWNCE
EMPLOYEES SALARY PER MONTH SALARY PER DAYS IN RS.
Highly skilled Skilled Semi- skilled
5770 5268 5110
221.92 202.61 196.53
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Un skilled 5050 194.23
Table 4.4 Classification of labour on the basis of permanent, trainees, contract base:
LABORS NO. OF LABORS PERCENTAGE
Permanent Trainees Contract base TOTAL
35 49 08 92
38.04 53.26 8.70 100.00
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Total
8.7 53.26 38.04 contract base permanent trainees
INTERPRETATION:This chart shows that no. Of labours working in DIPL. The DIPL is recruiting the workers on the basis of contract base. This also provides on the job training to the trainees. Table 4.5 LEAVE TABLE
Earned leave
15 days for year
Causal leave
10 days per year
Sick leave
5 days per year
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Interpretation:This table indicates that the leave of the workers in DIPL. Under this table the employees earned 15 days of leave per year. Causal leaves are 10 days per year, sick leave are 5 days per year. Performance Appraisal Once the employee is confirmed he shall be considered for an annual appraisal every year effective 1st of January. Appraisal will be based on his overall performance including attendance; sincerity to meet his pre agreed key performance areas & objectives. At the time of appraisal employee is required to give certain KPAs (Key performance areas) for next year with specific targets. It is expected the employee shall monitor his KPAs. Depending on performance of KPAs employee will be considered for annual increments. Fringe benefits 1. DIPL provides perquisites like canteen, lunch rooms, medical services etc 2. Premium payment 3. Payment for time not worker. Holidays, vacations period & rest period etc 4. Miscellaneous benefits 5. Provident fund of 12% ( basic + DA) repaid 6. Bonus is paid according to bonus act 1965 usually 8.33% pa is paid
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FINANCE DEPARTMENT: Finance is an essential component of the to maintain its operations effectively. This department is business
concerned with day to day activities like purchases, sales, salary etc and proper management and maintenance of accounts of concerned year. BANKER OF THE COMPANY 1. Indian overseas bank 2. Sirsi urban souhard co-operative bank MAIN SOURCE 1. Job work 2. Sale of scrap Functions: 1. Day to day bank transactions 2. Recovery 3. Bills passing and payments 4. Recovering all transactions in books 5. Preparation of cash of low of accounts.
statement budget. system
6. Providing various types of management information reports required by 7. Carryout auditing. 8. Cash handling petty cash handlings management from time to time.
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9. Bank transactions cash withdrawals, maintaining record of bank balance, details of check payments. 10.Preparation of statements for funds requirements of the month including statutory and supplier payments. 11.Recording of all the transactions in the books of accounts 12.Preparation of cash flow statement budget.
DIPL maintaining books of accounts: 1. Purchase register 2. Sales register 3. Bank register 4. Journal register 5. Cash book 6. Day book 7. Ledger and vouchers Implementation of annual budget Every year in 1st week of January each department has to provide their debtors of budget to account department. Finance department put up all department annual budgets to managing directors for review and final approval is taken. HR department budget and expenses following heads; 1. Training 2. Housekeeping 3. Vehicle maintenance 4. Vehicle fuel

5. Staff welfare 6. Telecommunication 7. Other expenses Gross turnover 18, 468, 914, 48 Net profit 3,330, 094, 60 Secured loans 823, 296, 00 Unsecured loans 6192,711.00 Authorized capital 100000 equity shares of rupees 100 each Issued, subscribed & paid up 49,530 equity shares of rupees 100 each 49,53,0000 1, 00, 00,000
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MAINTAINANCE DEPARTMENT: This department is ensure smooth functioning vital to all other department as it
of the
process. The company has a
very good policy in hand for maintenance of machinery. Records are maintained with raga to every machinery that is put to use .Obsolete
lagging machineries are replaced properly. The Maintenance Department is concerned with the
Maintenance of machines utilities like air compressor, diesel generator set, and IT equipments like computer fax machines, scanner and printers. Organization chart of maintenance department
Assistant manager
Engineer -1
Engineer-2
Supervisor
Supervisor
Filter contract Contract engineer Contract engineer
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There are three type of Maintenance: a. Breakdown Maintenance b. Preventive Maintenance c. Predictive Maintenance
a). Breakdown Maintenance: In the case of breakdown maintenance the machines are attended only when the process has stopped or after the breakdown.
b). Preventive Maintenance In the case of preventive maintenance machines are maintained in such a way to prevent occurrence by regular inspection, cleaning, greasing etc, as the case may be.
c). Predictive Maintenance Predictive Maintenance is where the life of each spare part is determined and at the end of the period spare part is replaced with new one whether it is damaged or not. Maintenance schedule are prepared on monthly, quarterly, semiquarterly and yearly basis.
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Functions of Maintenance Department: 1. To identify key process equipments 2. To rectify day- to day breakdown of the equipments 3. To plan and procure the spare parts equipments Maintenance 4. To maintain and update all records related to breakdown/ calibration/ installation and commissioning / retrofitting/ spare parts etc. 5. Provide adequate support to organization by keeping the equipments under proper working condition, to support qualitative and cost effective manufacturing of products. 6. Design and implement an effective preventive and predictive maintenance system so as to keep high uptime for equipment 7. Recondition old equipments to effectively maintain machine capability and retrofit the new technology to enable more effective capital deployment for minimizing unscheduled downtime and maintain machine capability. Day to day maintenance of machinery. Purchasing tools, accessories, lubricating oil etc required for maintenance. Keep the machinery in good conditions on a continuous basis. Provide repairs for machinery.
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QUALITY SYSTEM DEPARTMENT The aim of every organization is to produce best quality product. To achieve this goal it takes many measures before the production starts and continues till it reaches the customer. Quality control is an on going process.
Organization system of quality system department
Manager
MR
Headquality system
Senior engineer Q.A co coordinator Q.M.S
Functions: 1. Calibrates the monitoring and measuring devices at different frequencies. 2. Records the details of calibration. 3. Complies the calibration certificate and protects them. 4. Errors of the instrument are made known to the users.

5. Issue instruments and gauges to the users. 6. Details of setup approval are 7. Check recorded.
the coolant concentration.
8. Verifies the incoming / in process /finished items against control plans. 9. Records the details of inspection report.
10.Carryout dock audit. 11.Carryout the measurement system. non conforming products.
12.Record the details of
13.Defines the method accepting the incoming products. 14.Is responsible and authorized to for finished products. 15.Is responsible and authorized to finished of approve and release the prepare the quality plan
products for dispatch to the customer. Responsibility offer:
quality assurance
The quality assurance department is especially for financial approval. It is responsible for verification of products. are
After the approval from this department only the final products supplied to customers. The company is certified with ISO / TS 16949 quality system guidelines and improves its effectiveness. Quality assurance inspectors:
1. For maintaining quality records 2. Is responsible control plans. for incoming / in process / final inspection as per
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Why go for TS-16949? TS-16949 is a license for doing business with the customers and implementation of TS-16949 develops a common understating of quality related expectations, methods and practices with the customers. The common understanding and assurance it brings leads to: 1. Simplifying many different detailed decisions and work methods in managing and continually improving quality 2. Motivating and empowering people to take action to improve effectiveness and efficiency of their work processes in disciplined way. 3. Co-coordinating the actions of different people in an efficient way to give customers a defect and hassle free experience.
TS-16949 standard belief: TS-16949 is a quality management system that helps us continually improve the effectiveness and efficiency of our processes for products and services to our customers by emphasizing. 1. Defect prevention 2. Reduction in variation and waste in our supply chain.
It consists of four Quality Management Systems: a) ISO-9001 b) ISO-9002 c) ISO-9003 d) ISO-9004

ISO-9001 is given to those companies that will do designing as well as manufacturing, marketing and service. ISO-9002 is given to those companies that will do only manufacturing, marketing and service. ISO-9003 is given to those companies for servicing, calibration and testing. ISO-9004 is given only for service. It is vocabulary (guidelines for above systems). After 1994 a new system was incorporated QS-9000. It consists of two sections. Section I includes basic segments of ISO series and Section II is customer specific requirements QS- 9000 is basically formed the big 3s viz., General Motors, Chrysler, Ford and other manufactures. Later in 2000 they formed TS-16949 and the latest updating is of version TS16949, 2002 the fund Metals for this system is ISO- 9001, 2000 and ISO-9004, 2000 metals for this system is ISO- 9001, 2000 and ISO-9004, 2000
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COMPUTER ADDED DESIGN IN DIPL In DIPL sirsi there is a separate selection for computer aided design(CAD) here the computer is use to designing and manufacture a product where product specification are refined by continuous improvement in successive stage based on designers experience, computers, sketches and drawings. USE OF CAD IN DIPL 1. Computational and graphical software to enhance design productivity. 2. The geometry of the component can be graphically displayed and manipulated on video monitions. 3. Alternative designs can be worked out and evaluated fast. 4. Some of the time and expenses of physical mock-ups, models and proto types are eliminated. 5. By accessing the data base, an already existing design may be found eliminating duplicate design efforts. 6. Once a design is found acceptable, it is started in the data base and can be transmitted electronically to manufacturing, engineering, purchasing sections. Reason for limited of marketing area 1. With in the group of Divgi Warner 2. Under lease. 3. Building and machinery on lease. Reason for limited profit 1. Limited marketing area. 2. It is a sister concern unit

MANAGEMENT STUDY OF DIPL
A person who holds a management position inside an organization is required to think strategically and conceptually in order to achieve organizational goals. This lesson will describe the four functions of management and how they relate to organizational success. Top Management: The BOARD of the company is Manager for the quality management system. He is responsible for the over all growth of the company, where as day operation are looked upon by plant head. A team of top management assesses these skills through a competency matrix & training needs are recommended by the respective section heads in order to improve the weak areas. For top management, wherever necessary the company employs outside agencies to assess the skills & competency levels. . He is overall overseeing the overall growth of the company whereas day to day operations are looked upon by Plant Head. The staff of DIPL Top, middle and lower management have nurtured following qualification thereby being able to meet the expectations of their valuable customers. Quality: DIPL staff maintains professional attitude among all employees.
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Line & Staff Relationship: Line refers to those positions of an organization, which have responsibility, authority and is accountable for accomplishment of primary objectives. The relationship existing between two managers due to delegations of authority and responsibility and giving or receiving instructions or orders is called line relationship. Line authority represents uninterrupted series of authority and responsibility delegating down the management hierarchy. DIPL has adopted Line & Staff organizational structure that offers individual the opportunity to meaningfully learn & participate across diverse business processes. The Managing Director of this company is CEO for the Quality Management System. He is overall in-charge overseeing the overall growth of the company, whereas plant heads look after day -to -day activities. The business process heads, as shown in overall organization chart, are treated as top management to establish, implement, maintain & continually improve effectiveness of Quality management to establish, implement, maintain & continually improve effectiveness of Quality Management System. The Manager follows the Board. The team leaders of various departments report to the Manager.
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FUNCTIONS OF A MANAGEMENT Management performs different functions. They are mentioned are as follows. PLANNING Planning is one of the functions which determine well in advance what is to be done. It is a purpose of deciding business objectives and preparing the methods of attaining those objectives. Planning is an intellectual process. Engineering department is responsible for designing the product / part as per the customer requirement. The customer requirements are translated into the product realization plan through APQP (Advanced Product Quality Planning) steps. Product leader convinces multi disciplinary actions consisting of various business processes who act as a board of decisions for design activity planning. This business process ensures that company confirms to all the agreed customer requirements. ORGANIZING Organization refers to structure which result from identifying and grouping of work, defining and delegating responsibility and authority and establishing relationships. Organization Purpose: 1. To pursue excellence in all spheres of our business activity through a process of continual improvement 2. To produce detect and hassle free quality products & services to meet or exceed customer expectations. 3. To attain leadership in the market.

4. Commitment to high standards of motivation & competency that is essential to the persuit of excellence. STAFFING Staffing is an important function of management and a part of the organizing function. The manger discovers the right person for each job in staffing. Staffing fixes manager there is enough man power available to fill the various positions in the staffing also involves introductions of suitable systems of compensations training, promotion and retirement of subordinates working in the office. The people / human resource management processes use to develop mangers socialization processes, ways of shaping basic values of management cadre, ways of introducing young recruits to the Co., ways of helping to manage the career of employees. DIRECTING Directing refers to giving explanation by the manager to the staff regarding what they have to do and help to do it the best of their ability. It involves three sub functions, namely, communication, leadership and motivation. Communication is the process of passing information from one person to another. Leader is the process of which manager guides and influences the work of his subordinates. Motivation means arousing a desire in the minds of workers to give their best to the enterprise. It is an act of inspiring workers. As directing is connected with influencing, guiding, supervising and motivating the subordinates in their jobs, it is an important function of manager.

CO-ORDINATING In any organization, it is common that different people have different ideas regarding attainment of goals. Hence, there is a need for co-ordination of activities. Thus co-ordination is the balancing and keeping the team together by allocating seeable works to the members and see that the members with harmony performs the works. Some of the important requisites for effective coordination are principles, direct contact, early start, continuity, dynamism, clear cut objectives, clear definition of authority and responsibility, simplified organization, effective communication, leadership and supervision. Basis for specialization & coordination influenced primarily by strategy & by organization size and diversity. CONTROLLING In order to ensure that the work is done as per the plans lay down. Controlling is very much important. Controlling functions of management involves three elements. I) Establishing standard of performance for work. II) Comparing the current performance with the established standards. III) Correcting those works which are against those standards. This business process receives customer schedule details from marketing considering inventories at raw material, work-in-progress and finished goods, they prepare production plan is a base for manufacturing process. This business process also controls outsourcing of products/ processes. This process strives for 100% on time delivery performance of company.

Responsibilities and Authorities of control: 1. Prepare dispatch plans / schedules based on scheduled requirements. 2. To-corporate with Bhosari ( Pune ) for the following: a. Raw materials b. Tooling / insert s c. Mobilizing empty trays for material handling d. Preparing dispatch schedule
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CHAPTER-V
SUMMARY, FINDINGS AND SUGGESTION
SUMMARY Industrial organization is the field of economics that builds on the theory of the firm in examining the structure of, and boundaries between, firms and markets. The subject has been described as concerned with markets that "cannot easily be analyzed using the standard textbook competitive model." Industrial organization adds to the perfectly competitive model real-world frictions such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition. It analyzes determinants of firm and market organization and behavior as between competition and monopoly, including from government actions. There are different approaches to the subject. One is descriptive in providing an overview of industrial organization, such as measures of competition and the size-concentration of firms in an industry. A second uses microeconomic models to explain internal firm organization and market strategy. As to strategic firm interaction, non-cooperative game theory has become the standard unifying method of analysis. A third aspect is oriented to public policy as to economic regulation and antitrust law.
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Methodology of Data Collection

Research methodology is a systematic way for solving any research problem. Its a science of analyzing how research is done scientifically. It studies the various steps that are generally adopted by a researcher in studying the research problem. Sources of Data: There are 2 types of data: 1. 2. Primary Data Secondary Data
Primary Data The primary data are those which are collected fresh for the first time and thus happen to be original in character. The primary data collection involves the collecting of information for the first time by observation, experimentation, and questionnaire and through interview schedule in the original form by the researcher himself or his nominees. Plan of action: The primary data was collected through discussion with the manager using the interview schedule. This data was obtained to study the latest procedures relating to working capital management and cash management system followed by the company.
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Secondary Data The secondary data are those which have been collected by some other and which have been processed. Generally speaking secondary data are information, which have been previously collected by some organization to satisfy its own need. But the department under reference for an entirely different reason is using it. There are two main sources for Secondary Data: I. Published Data: Data that is already available in books, magazines, trade journals, newspapers, reports, prepared by research scholar etc. II. Unpublished Data: This is not published; it can be found in unpublished biographies, autobiographies, some governmental aspects and private individual organizations etc.
The Secondary data used in the study are: a. Annual Report of the company. b. Published financial reports of the company. c. Financial records and stores manual of the company. d. Directors reports, auditors report and other schedules.
Objectives of the study 1. To study the organization and management of divgi industry. 2. To study the different departments of divgi industry. 3. To study the human resource of divgi industry.

SCOPE OF THE STUDY It is very useful to the entrepreneur to under stand the nature and working of organization and management and also to adopt innovative methods. By that to reduce cost of production and to also to improve the quality of the product and to get maximum benefit. FINDINGS 1. DIPL is more conscious about there quality maintenance. 2. DIPL satisfy the requirements the ISO/TS- 16949 quality certification. 3. DIPL is concentrating on implementation of latest technologies in its operations. 4. There exists a healthy relationship between DIPL and DWPL. 5. DIPL make use of CNC machines largely in its production process. 6. The most employees on DIPL are young and energetic. 7. In DIPL all the employees are green same type of uniform from operator to administrator level. GENERAL PROBLEM OF DIPL 1. Machine variation is the main important problem in divgi industries private limited. 2. Maintenance 3. Man power problem 4. Electricity problem
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SUGGESTION 1. DIPL has to concentrate on available market, demand for automobile component and should not limit its operation only for DWPL. 2. DIPL has to implement more upgraded technologies in its operation to produce new varieties of auto spares and to increase existing production. SWOT ANALYSIS STRENGTHS OF DIPL: DIPL are committed to customer satisfaction at all levels in the organization. DIPL has Quality Assurance and QMS departments where in all the queries, difficulties or any type of assistance required by customer is taken care. The issues relating to customer complaints, resolutions, corrective actions etc., suggestions by customers for improvement in processes / products are discussed on weekly basis and actions are initiated to resolve the problems. DIPL provides total transparency in dealing with its customers and are committed to enhance their capabilities, by providing them with latest technological advantage and utilizing maximum capacity to meet their requirements. They process the knowledge and the technology that is relevant to the products being designed, manufactured and supplied. 1. Company has On-line communication system, capable to be linked with customers On-line system. 2. Line with QS-TS-16949 certification, which can achieve a good market for its product at global level.

3. The company has adopted Continual Improvement philosophy, which helps to achieve greater effectiveness & efficiency in all the business processes. 4. Customer complaints are systematically handled through team oriented problem solving 8 D methodology for internal as well as external concerns. 5. There is well- designed automation & workstation near every machine, which are operator friendly. 6. There is teamwork among the employees in the company. 7. Each process (activity) is measured for effectiveness & efficiency to meet quality objectives. Competency to adopt new system, implementation, practice & sustenance. 8. Most of the workforce comprises of well informed, competent youngsters qualified with diploma or graduation in engineering. WEAKNESS OF DIPL: 1. DIPL is situated in a remote place or area, which is far away from metropolitan cities, and it is not connected with national or state highways. 2. The lack of connectivity with proper roads & highways leads to the problem of procuring inputs & delivery of outputs. 3. There is transportation problem because Sirsi is a hilly region above sea level so there is no facility of railways, which is the faster means of transportation than roadways. 4. The company hires employees on contract basis, which makes rigorous training essential.
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OPPORTUNITIES AT DIPL: 1. There is a scope for making final products instead of component parts and make it available for profit & loss. 2. There is an opportunity for making future expansion in business by going for joint ventures & tie-ups with other companys also. 3. The company provides various employment opportunities to new graduates & local people of Sirsi. 4. By adopting EMS ISO 14001, the next aim of the company is to Deming Award of certified by Japanese, which is given for quality management systems. 5. The vast area of land & space of building can be effectively used for future expansions. THREATS OF DIPL: 1. DIPL, Sirsi mainly depends on the parent company i.e. DWPL, Sirsi and Pune. The parent may change its base of manufacturing for marketing its products outside India. 2. The major raw material used in the production is steel, presently there is a huge demand for steel & there is rise in the price of steel for last few years in India & all over the world. The rise in the input cost will reduce the margin of the company. 3. There is always a risk of change in Government Policies.
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CONCLUSION
1. In present area of business, the organization lends to satisfy the needs of the customer more effectively than competitors in the way to achieve high market share and long life. 2. DIPL wants to become an excellence in manufacturing of auto plant ant at the same time if wants to reach the stages what it is dreaming of for which the co-ordination from employees and management is necessary.
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BIBLIOGRAPHY BOOKS:1) Shubhra Rahul (2007) Principles of Management- ManagementR.Chand And Company, New Delhi- P.No.36 And 95 2) Arun Kumar and N.Meenakshi Organizational Study Organization Behavior Vikas Publishing House p.390 3) P.C. Tripathi& P.N. Reddy Organizational Study Principle of Management, 3rd addition S.Chand p.94 4) K. Ashwatappa (2007)- Organizational Study Organizational Behavior, seventh revised Himalaya Publishing House p.508 5) A B N Kukarni& AB Kalkundrikar Organizational Study Managerial Economics R.Chand p.167 6) C.S.V. Murthy Organizational Study Entrepreneurship Development Himalaya Publishing House p. 1.3 7) Jagroop Sing Organizational Study Entrepreneurial Development & Small Enterprise Kalyani Publishers p.107 WEBSITE:www.google.com www.wikipedia.com www.divgi-warner.com
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I.
EQUITY AND LIABILITIES
1. Shareholders fund a. Share capital b. Reserves and surplus c. Money received against share warrants 2.Share application money pending allotment 3. non current liabilities a. Long term borrowings b. Deferred tax liability (net) c. Other long term liabilities d. Other long term provisions 4. Current liabilities e. short term borrowings f. trade payables g. other current liabilities h. short term provisions 14379026.88 TOTAL 10087146.11 5167006.05 1787946.50 2112501.88 1603790.00 7016007.50 9292881.00 4953000.00 (4544933.17) 4953000.00 (7875026.77) -
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II. ASSETS 1. Non current assets a. Fixed assets i. ii. iii. iv. Tangibles assets Intangibles assets Capital work in progress Intangibles assets under development b. Non current investments c. Deferred tax assets (net) d. Long term loans and advances e. Other non current assets 333846.00 287007.00 238090.00 14705.00 238090.00 26366.00 7256851.00 5323434.00
2. Current assets a. Current investments b. Inventories c. Trade receivables d. Cash and cash equitant e. Short term loan and advances f. Other current assets significant accounting policies 4264301.65 2271233.23 3392861.67 819387.44
TOTAL
14379026
10087146.11
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DIVGI INDUSTRIES PVT LTD, SIRSI CHAPTER-I

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

Planning Organizing Leading/motivation Controlling

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

OBJECTIVES OF THE STUDY

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

LIMITATIONS OF THE STUDY

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

Electrical Parts Equipments

10% 20% 13% 33% 13% 11%

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

Toyota Kirloskar Motor Ltd

Reva Electric Cars

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI

DIVGI INDUSTRIES PVT LTD, SIRSI

GOVT. FIRST GRADE COLLEGE, SIRSI