Subham Internship

PRODUCTION PLANNING AND CONTROL IN

THE AUTO-ELECTRICAL INDUSTRY

A SUMMER INTERNSHIP REPORT

Submitted by

SUBHAM CHAUHAN

Registration No: 11504778

In partial fulfillment of Summer Internship for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION (HONS)

School of Business

LOVELY PROFESSIONAL UNIVERSITY Phagwara, Punjab

July, 2016

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DECLARATION

I, Subham Chauhan, hereby declare that this internship project report entitled

Production planning and control has been completed based on actual study carried out

by me during my 45 days internship program at Lucas TVS Limited, Rudrapur.

I am presenting an authentic report of my work to School Of Business at Lovely

Professional University, Phagwara carried out at Lucas TVS Limited, Rudrapur for the

partial fulfilment of the requirement of the Master of Business Administration degree

programme of Lovely Professional University, Phagwara

This Study based report is original and information, data and fact furnished there in are

actual based on study carried out by me.

Signature

Subham Chauhan

11504778

Date- 31-07-2016

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ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of any task

would be incomplete without the mention of the people made it possible and whose

guidance and encouragement.

The project is the part & parcel of M.B.A. Degree. Its my great privilege to be

associated with Lucas TVS Limited - leaders in Automotive Filters and Auto-

Electrical Equipments. The kind of expression of Lucas TVS Limited. Global &

professional attitude is what, I desired before joining. I would like to take this

opportunity to thank all the people who helped in the completion my industrial training

& in the completion of this project.

I acknowledge my deepest thanks to Mr. D. D. Satyawali (Human Resource Head)

at Lucas TVS Limited, Rudrapur for all his care & encouraging words & giving

suggestions at the crucial stages of this project.

I deliberate my profound sense of gratitude of Mr. Sunit Kumar Chauhan

(Production Head), who have rendered constant guidance, advice and help as & when,

needed to complete this project work successfully.

I am thankful to Mrs. Neeru Sidana (Assistant Professor, School of Business) for her

exertions and persistent assistance during my internship at Lucas TVS.

I am deeply indebted to my dear parents, friends whose blessings and inspirations have

brought me up to this stage of my career.

Subham Chauhan

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EXECUTIVE SUMMARY

This report is mainly focused on production planning and control towards optimizing

the resources to enhance the productivity and effective labour utilisation and to

improve the quality for better customer satisfaction. In my summer training I have

targeted Alternator (SIA114) main assembly line in Lucas TVS Limited. Normally in

this internship important motive is to give information to the plant head of the

company and production manager. After giving information to the line in charge then

we ask some question for production planning and controlling purpose like what the

production losses and the quality problems in the assembly of alternator and from

where they tried to get the solutions and up to what extend they got their problem

troubleshooting in failure of production planning and corrective and preventive action

for the quality issues. Collection of data from the quality gate (Final Dispatch) and

pre-dispatch inspection used in this report is primary and secondary. Primary data of

this project is to explore awareness among the operators and supervisors about the data

of production losses and quality problems to discuss certain best practices towards

enhancing the productivity and effective labour utilization (ELU). Arising out of the

productivity loss and secondary objective of this project is, to aware the operators and

supervisor about the product quality towards customer satisfaction.

As per the study and feedback from the operators, they are not much aware about the

productivity losses and the customer dissatisfaction about the quality and delivery. But

after giving information to the operators and line in-charge they said it is very useful

for them and said whenever they get some problem regarding the productivity and the

quality or any loss in production they will definitely minimize the 4M (Man, Machine,

Material & Method) losses and also many of the lines are facing the problems related

with the production and quality losses so there is large potential of the customer

dissatisfaction for Lucas TVS Limited.

As every other study, this study also has certain limitations. Some of the information

taken is secondary so the information taken can be wrong. The operators or supervisors

while providing the information may be bias.

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OBJECTIVE OF THE PROJECT

PRIMARY OBJECTIVE

To study the Need and Management of Supply Chain Management of the

organization and the potential benefits of doing so.

To identify the strategic, tactical, and operations issues in supply chain

management.

To define the term inventory and list the major reasons for holding inventories and

list the main requirements for effective inventory management.

To study the production planning and controlling process of Lucas TVS and the

techniques by which the former can enhance its productivity.

SECONDARY OBJECTIVE

To gain real world experience of production and operations within the organization.

To enhance the skills and gain experience of being a true professional.

To understand the day to day functioning of a department within the organization.

To deal with various problems of customer and their enquiry.

To apply the various theoretical concepts in practical way within the organization.

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TABLE OF CONTENTS

S.No CONTENTS PAGE No.

1 Profile Study of Organization 13-19

Industry Analysis 14

Preliminary Understanding of the industry 15-16

Nature of demand and supply 16-19

2 History of Company 20-26

Origin 21-24

Expansion 24-25

Global Expansion 25-26

3 Introduction of the Company 27-42

About 28-30

Mission and Vision 30-31

Infrastructure 32

Life and Work Culture 33-35

Specialized Products Lucas TVS Offers 36-40

Customers of Lucas TVS 41-42

4 Organization Structure 43-48

Organization Hierarchy Under Plant 44

Organization Hierarchy Under Production 45

Awards and Recognitions 46

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Quality Policy 47-48

5 Learning From the Internship 49-67

Supply Chain Management 50-52

Production Planning 53-55

Production Scheduling 55-57

Production Monitoring 57-59

Quality Control 60-61

Pre-Dispatch Inspection 61-65

Inventory management 65-67

6 SWOT Analysis 68-74

Competitors Analysis 71-73

Conclusion 73-74

7 Customer Satisfaction Towards Lucas TVS

Limited.

75-80

Introduction 76

Need of the Study 76

Objective of the Study 76-77

Review of the literature 77-78

Research Methodology 79-80

8 Data Analysis and Interpretation 81-94

9 Findings and Recommendations 95-97

10 Conclusions 98-99

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11 References 100-101

12 Questionnaire 102-104

LIST OF TABLES

S.No TABLES PAGE No.

Table 3.1 Customers of Lucas TVS 42

Table 4.1 Awards and Recognitions 46

Table 5.1 Suppliers of Lucas TVS 52

Table 5.2 Cell log Sheet 54

Table 5.3 Day-Wise Breakdown 55

Table 5.4 Shift Breakdown 56

Table 5.5 Production Monitoring 63

Table 5.6 4Ms Reason 63

Table 5.7 4Ms Breakdown 64

Table 5.8 Kaizen Result Layout 65

Table 8.1 Variables Validity 82

Table 8.2 Order Validity 82

Table 8.3 Order Quantity Validity 83

Table 8.4 Order Delivery Validity 84

Table 8.5 Order Fulfilment Validity 85

Table 8.6 Package Rating Validity 86

Table 8.7 Defected Items Per Lot Validity 87

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Table 8.8 Problems in AEC Validity 88

Table 8.9 Problems in EFIP Validity 89

Table 8.10 Component Rating Validity 90

Table 8.11 KMOs Test Significance 91

Table 8.12 Communalities Extraction 92

Table 8.13 Variance Explanation 92-93

Table 8.14 Component Matrix 93

Table 8.15 Rotated Component Matrix 93

LIST OF FIGURES

S.No FIGURES PAGE NO

Fig 1.1 Engine Electrical Components 14

Fig 2.1 Customers Welcome in Lucas TVS 23

Fig 3.1 The Founder of Lucas TVS 28

Fig 3.2 Certifications 29

Fig 3.3 Plant Outlook 33

Fig 3.4 Plant Interior Layout 33

Fig 3.5 Health & Safety Policy 34

Fig 3.6 Energy Policy 34

Fig 3.7 Norms and Ethics 35

Fig 3.8 Alternator 37

Fig 3.9 Location of Alternator in Engine 37

Fig 3.10 Starter Motor 38

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Fig 3.11 Location of Starter Motor in Engine 38

Fig 3.12 Wiper Motor 39

Fig 3.13 Location of Wiper Motor in