KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT STUDIES, HARIHAR

INDUSTRIAL INTEGRATION REPORT

MANUFACTURING INDUSTRY: BOSCH LTD. INDIA,

BANGALORE PLANT (DIESEL)

SERVICE INDUSTRY: ANGEL BROKING PVT. LTD.,

BANGALORE

SUBMITTED TO:

SUBMITTED BY:

PROF. E. ANAND

Shivi Agrawal (96) Sayantani Chatterjee (92) Devashish Bajaj (34)

Nitish Pratap Singh (67) Richa Shukla (82)

DATE OF SUBMISSION: DECEMBER 09, 2011

Table of Content: Sl no 1 2 3 4 Objective of the visit Brief introduction of the companies Bosch Limited Angel Broking Pvt. Limited Chapter Page number 2 4 10 24

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CHAPTER I Objective of the Visit

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OBJECTIVE OF THE VISIT

The main objective of the industrial visit was to know about the management processes that are being practiced in the manufacturing and services industry, to understand how the operations, resources and people are managed and utilized in an organization, how the supply system of a company works and how the demand is met. We have had theoretical workshop in our classes about the Balanced Scorecard model and Business Excellence Model. And the main purpose of our visit was to acquire practical knowledge of these two models and also to map how these models are actually used by the company in their day-to-day working.

To have an interface with the industry.

To understand the practical applications of the Business excellence model in manufacturing and service industry.

To be able to relate the theoretical with that of the practical aspect of Balance Score Card Model and Business Excellence Model.

To make us understand the roles and responsibilities of different departments in an organization and also their inter-relation amongst themselves.

The visit also helped us identify the sector and department which each one of us would like to join.

The visit was helpful because it developed our interest in some parts of business which we were unaware of.

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CHAPTER II Brief Introduction of the Companies

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BRIEF INTRODUCTION TO THE COMPANIES

ABOUT BOSCH GROUP Bosch is celebrating its 125th anniversary in 2011. The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as a "Workshop for Precision Mechanics and Electrical Engineering." The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH. The Bosch slogan 'Invented for Life' is part of its long tradition, through which it communicates the Group's core competencies and vision, that include technological leadership, modernity, dynamics, quality and customer orientation. The Bosch Group is a leading global supplier of technology and services. Some 300,000 associates generated sales of 47.3 billion Euros in the areas of automotive and industrial technology, in the areas of automotive and industrial technology in fiscal 2010. The Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Bosch spent some four billion Euros for research and development in 2010 and applied for over 3,800 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial.

ABOUT BOSCH LIMITED Bosch has been present in India for more than 80 years first through a representative office in Calcutta since 1922, and from 1951 through its subsidiary Bosch Limited (then Motor Industries Company Limited). Bosch is also represented by five other group companies in India. Robert Bosch Engineering and Business Solutions Ltd., a 100% subsidiary of Robert Bosch GmbH, has been present in India since 1998. Today, it has emerged to become one of the largest Bosch development centers outside Germany. It provides end-to-end engineering and technology solutions for all the business sectors of automotive technology, industrial technology, consumer goods and building technology. Bosch Rexroth India Ltd., that was established in 2001 (by acquiring majority stake in Rexroth established in 1974), is an expert in drive, control and motion technologies. It provides a complete range of products, systems and services for the Industrial Drive & Page | 5

Control segment. It serves customers though its manufacturing facilities and service centers in Ahmedabad and Bangalore. Bosch Chassis Systems India Ltd. established in 2005, (by acquiring majority stake in Kalyani Brakes Ltd. established in 1982) is amongst the leading manufactures of Hydraulic Brake Systems and Anti Lock Braking Systems meeting the stringent quality norms of many leading India and international vehicle manufacturers. Bosch Automotive Electronics India Private Ltd., is a 100% subsidiary of Bosch Group and is engaged in the manufacture and sale of electronic devices and electronic control units. The company is based at Naganathapura in Bangalore. Bosch Electrical Drives India Private Ltd., is a joint venture company. It is based near Chennai and manufactures and sells electrical drives for various automotive applications such as window lift drive, wiper system, engine cooling fans etc.

ABOUT BOSCH LTD. INDIA, BANGALORE Founded in 1951, Bosch Limited is Indias largest auto component manufacturer and also one of the largest Indo German companies in India. The company generated net sales of Rs. 6630 crores in 2010. The Bosch Group holds 71.18% stake in Bosch Limited.

The company is headquartered in Bangalore with manufacturing facilities at Bangalore, Naganathapura (near Bangalore), Nashik, Jaipur and Goa. Bosch Limited manufactures and trades in all the three major business sectors of Bosch. Details below Automotive Technology Business divisions: Diesel and Gasoline Fuel Injection Systems, Car Multimedia Systems, Auto Electricals and Accessories, Starters and Generators, Energy and Body Systems. Industrial Technology Business divisions: Packaging Machines, Special Purpose Machines Consumer Goods and Building Technology Business divisions: Power Tools, Security Systems

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ANGEL BROKING Pvt. Ltd.

Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing Real Value for Money to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL.

Their Business

Equity Trading Commodities Portfolio Management Services Mutual Funds Life Insurance IPO Depository Services Investment Advisory

VISION: To provide best value for money to investors through innovative products trading investment strategies state of the art technology and personalised service.

BUSINESS PHILOSOPHY: Ethical practice and transparency in all our dealings, customer interest over our own, always deliver what we promise, effective cost management.

Values:
Integrity Teamwork Quality Mindset Entrepreneurship Service Orientation Passion & Commitment

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Quality Assurance Policy: We are committed to being the leader in providing world class products and services which exceed the expectation of our customer achieved by teamwork and process of continual improvement.

CRM: Customer is King Customer is the most important visitor in our premise. He is not dependant on us but we are dependant on him. He is not an interruption in our work but is the purpose of it. We are not doing him a favour by serving. He is doing us a favour by giving us an opportunity to do so. -Mahatma Gandhi

MILESTONES: 1997-2003 December97: Incorporation of Angel Broking. July98: Angel Research Division started. March02: Web enabled back office software developed. 2004 April: Incorporation of commodities broking. September: Launch of internet trading platform. 2005 October: Awarded prestigious Major volume driver award. 2006 July: PMS function launched September: Commenced JNF and IPO distribution. October: Awarded Major volume driver award. December: Crossed 2500 business associates. 2007 October: Major volume driver award for the third consecutive time. November: Crossed Rs.1.5 lakh mark in DP a/c. December: IFC acquired 12.35% stake in Angel Group.

2008 January: Commences insurance distribution. February: Ranked 1st for registered intermediaries. Page | 8

May: Third party distribution business ramped up. September: Ranked 1st on NSE for largest sub-broker network. December: Major volume driver award for the 4th consecutive time. 2009 January: Ranked 1st on NCDEX on the basis of turnover May: Awarded best Retail Broking House and the largest distribution network by Dun & Bradstreet. Two analysts won the ET Starmine Analyst Award. Major volume driver award for 5th consecutive time. 2010-2011 November10: Major volume driver award for the 6th time. February10: Angel analyst won three categories at the ET now starmine awards. March11: Awarded best contributor in Investor Education & Category Enhancement of the year. Angel Broking & Broker with best commodity research of the year. Angel Commodity Broking Pvt. Ltd. By Bloomberg UTV Financial Leadership Awards 2011.

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CHAPTER III Bosch Limited

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Bosch Business Excellence Model

Boschs founder Robert Bosch was a visionary who firmly believed in delivering excellent quality. To suit its founders vision the company has been continuously driving change. Bosch was one of the founder companies to implement the Business excellence model. It has been a change driver since 2004.

Enablers:
1) Leadership: I. Almost 71% of the Bosch India is held by Bosch limited based in Germany. 92% of the German company is held by Robert Bosch stifting GmbH which is a non-profit organization. II. Boschs leaders are some of the most qualified people. Example its research department head for diesel system is Mr. Duernholz who is considered to be the guru of all diesel engineering. III. The leaders at Bosch follow an open approach in which they regularly organize meetings with all the employees. In such meeting they discuss the future vision of the company and also adhere to the problems of the employees. By discussing the vision with the employees they bring the motives of the employees in synchrony with that of the company. IV. There are suggestion/complain boxes placed in each department. Any employee can write any issue in the same. And the management will conduct a thorough research on the same invite the person to discuss on the matter. Thus, even the smallest matter is solved. The problem is even discussed in the meeting if required and solutions are invited from other employees. V. The leaders are futuristic in their planning. The company has already laid a comprehensive plan for the year 2018. The expected growth rate, expected demand, market condition has already been decided and strategic plans for the same has been laid out by the company which include short term and long term goals. VI. Bosch has a motive of synchronizing the motives of all its stakeholders. This they are still in the process of achieving. By doing this they will be able to achieve their vision we grow profitably with innovative solutions for our customers with a commitment towards our society and environment. VII. Bosch has a transparency and no corruption policy. In which any employee can complain about anyone on their ethical conduct. VIII. The diesel system uses competency mapping to check on the leadership. Required training is given to leaders to improve their leadership skills. 2) Strategy: Deployment of Business Excellence (DBE) in BOSCH led to improvements not only in leadership aspects but also strategy management. Business Excellence is facilitating the organization to align all its functions towards the Company's vision and mission strategically. This management concept places a strong emphasis on meeting all stakeholders' expectations. Page | 11

i)

Corporate strategy: the major tool used by Bosch for implying corporate strategy is the Business Score Card. a) Boschs economic strategy corresponds to the common aim of the Bosch Group for innovation, independence and integrity. The cornerstone of Boschs activity is to maintain the innovative force which is based on the knowledge and competence of experienced employees. The aim is to be among the worlds market leaders and to be a major player in all of the companys business sector. The strategy to obtain this goal is on one hand strong marketing of new products and on the other hand ongoing investment in Research and Development to innovate continuously. b) Efficient sales and customer service also plays a key role in Boschs corporate strategies. The company understands that customers are their primary reason for being and strive to innovate and create value for them by understanding and anticipating their needs and expectations. c) Integrity is the third part of Boschs corporate strategies. The company stands for a number of values to promote team spirit and to strengthen integrity and ethics with the concern for long term performance. Business strategy: a) Bosch brand is known all over the world and people associate quality, innovation, reliability and financial strength with it. Boschs business related policies, plans, objectives and processes are developed and deployed as a stakeholders focused strategy. b) Boschs future business strategy is supporting growth and reducing cost. Therefore, Bosch is going to expand its manufacturing capacities. To remain competitive and to meet the challenge in its environment Bosch directing its effort to reduce costs, continuous improve processes in all areas and intensively utilise resources. c) New market development- Development of solar panels to electrify the small buildings have provided the company to reduce its cost effectively. For the development of solar plans Bosch has began manufacturing photovoltaic cells by acquiring a company named Ersol.

ii)

3) People: There are things we can do by ourselves and things we cannot do by ourselvesBecause we lack the ability or we lack the time, The main thing is to find the right people who can do the work for you. Having the right people in the right places is crucial for the success of our company. Robert Bosch. Bosch philosophy has always been to promote trust, creativity, innovative thinking and to crate space for the employees to think and act independently. in India the employee strength of Bosch is over 11,700 across five manufacturing site, sales and regional offices. The basic framework of human resource development in Bosch are as follows: I. Retraining and training existing employees towards meeting challenges arising from development or up-gradation of technology. II. Training and developing the younger generation of apprentices/engineers who are the future skilled technicians/managers.

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III.

Involving human resources through employee involvement schemes like CIP, BVC, BHS, Quality Circle etc.

Bosch Human Resource System (BHS): A management and support system, is the global change initiative in Human Resources. It provides both a framework and direction for strategic and operational HR work. Its goal is to achieve systematic control and optimization of HR processes and organization worldwide. Continuous Improvement Programme (CIP): A methodical approach of CIP was adopted by Bosch through involvement of leaders, known as LeaderCIP. It is a structured improvement process that works with the goal of excellence in controlling everyday work, thereby increasing the value contribution. The program attained a multifold growth in support functions and provided a platform for leaders and associates to address issues through many CIP workshops, laying the foundation for sustainable development. Along with this, a new approach called VSDiA - Value Stream Design in Indirect Areas, applying Lean (waste elimination)philosophy in indirect processes has immensely helped in identifying and eliminating "Non-value adding activities. While indirect functions benefitted from LeaderCIP and VSDiA, CIP for direct functions resulted in many problems being solved through the Shop Floor CIP drive. In the year 2010, associate involvement in improvements also increased through Team Oriented Production (TOP) and Voluntary Lernstatt teams. Bosch Vocational Centre (BVC): With 50 years of experience in training &development, the Bosch Vocational Centre has been instrumental in identifying and tapping an individuals' potential. It has been successful in extracting greater efficiency and maximizing employee contribution towards achievement of organizational goals. The centre provides good infrastructure, along with the latest technologies to cater to the needs of the industry. BVC has produced a record number of 186 Best Apprentices Award and has won the Best Establishment award, a record 41 times. Quality Circle: In Bosch, every department has at least one quality circle team which consist of a group of employees who voluntarily become a part of the team and choose a problem of their department. Discussion happens on a weekly basis and they work on the problem and its improvement. Values for the employee: The Company as a constituent of the Bosch Group has always been a value driven company. Many of these values go back to Robert Bosch, the founder. Other values have evolved over time. These values have been codified to ensure uniform and common understanding and systematic implementation across all Bosch locations and units worldwide. Employees who know the values of the Company who have internalized them and who live according to them gain confidence and orientation for their daily work. This helps the employees to take better and faster decisions, to develop greater initiative and to take on greater accountability for their own actions. In the end this gives them greater empowerment and makes the Company better. The House of Orientation sets out how we see their future development, the principles of their approach, and the capabilities that they have and want to exploit for continued success in the future. It also contains information on the standards and values that motivate them in their daily striving for success and improvement. House of Orientation

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will help all associates to understand and live the corporate culture a culture that offers orientation, reinforces cohesiveness, and creates identification. The House of Orientation comprises the following modules: These values are: 1. Future and Result Focus 2. Responsibility 3. Initiative and Determination 4. Openness and Trust 5. Fairness 6. Reliability, Credibility and Legality 7. Cultural Diversity The House of Orientation helps all associates of the Bosch Group to better understand the changes in the company, to play their part in shaping those changes, and in this way to ensure the long-term competitiveness, focuses on product creation and related activities. Bestpractice processes and qualified associates allow Bosch to attain excellence in product creation and best-in class products.

4) Partnership and resources: External partnership:

I. Currently Bosch has a list of regular suppliers. In case of emergency requirement they also approach temporary suppliers. In their manufacturing process a few of the supplies are taken as random sample and tested upon. In the future Bosch wants to eliminate this process of testing of sample supplies as it involves cost and time. They want their suppliers to be added to a list of preferred suppliers whose quality will be guaranteed. And the cost of the same will be reduced. Bosch wants to develop trust between all the stakeholders and the company. It keeps the stakeholders regularly informed on the developments in the company and the industry. Customers are also a part of the stakeholders of the company. To create a brand image of the company and to create a long term relationship with the customers Bosch takes a variety of initiatives. They are:

II. III.

i. They participate in fairs such as Delhi Auto Expo, etc. ii. They organize seminars. iii. They print newsletters which are sent to the entire customer group (companies). iv. They organize tech-day at OEMs. During which the company conducts free check up of cars, etc. they inform the user on the ways to best utilize the car and how to make it last longer. This action of their helps create a good brand image and recognition for the company. v. In case of complains they follow the eight D format. In which conduct a detailed analysis on the complain and the problem. The problem is solved within two weeks time maximum. This time may vary depending on the severity of the problem.

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Internal resources: I.All the employees be it the labour or the management all are considered a partner to the firm. II.The employees are given a safe environment to work in. they in fact have a vision of hospital clean inside and garden green outside. This shows the quality of employee satisfaction they want to achieve. III.Each employee is free to complain/suggest to the management. IV.Ergonomic principles are used to get maximum efficiency. V.By using solar power in cooking they have been able to create a pollution free environment. VI.Safety is a major constituent at Bosch. Safety of employees is given maximum concentration. In each department one could find a stretcher, fire extinguisher etc. the plant is made in such a manner as to have the least harmful effect. All employees have been given with required safety equipments. VII.The employees are explained the vision goals of the company to better motive the employees to take part in the process. VIII.The layout of the manufacturing unit is currently a mixture of straight line layout and process layout. This leads incurring of excessive cost. The company has plans to change that to a mixture of straight line and U shaped format of manufacturing.

5) Process, Product and services: I. The company has a fixed process for all of its practices. These processes are regularly upgraded to suit market demand and change in trend. II. CIP stands for continuous improvement process. This is used to achieve manufacturing excellence. The labourers who are working at Bosch currently are used to the current process of manufacturing. To change their perspective and get them accustomed to the new process. Example: the company earlier used to manufacture one product on one day and another product on another day. With increasing number of customers they shifted to a manufacturing process which produced all kinds of product on day. This helped Bosch in satisfying the demand of the customers and also reduced finished goods stock. III. The machinery used is continuously improved upon. Obsolete machines are used for their spare parts. Older machines are upgraded to newer technology thus cutting purchasing cost. IV. The end products of the company are changed according to market demand. Like, the diesel system which is currently the largest market for Bosch was thought to be obsolete to such an extent that the company people themselves thought that the product will lose its demand in the near future. But with its innovation tactics it was able to surpass that stage and now the company has maximum share in the diesel systems market.

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V. RADAR- This is a system used by Bosch in its decision making process. Key result to be achieved is analyzed. The relevance and usability of the result is identified by analyzing the scope, integrity and segmentation. The performance is analyzed by studying the trend, targets, comparisons, causes. After deciding the key result the approach is analyzed. The approach should be sound and integrated. After the approach is decided it is implemented systematically this is known as Deployment. At last assessment is done using measurement tools and through refinement is done improvement and innovation in practices. VI. Continuous Research and Development practices are followed by the company. Product is regularly upgraded depending on the changes in law. Example the latest update to European emission law requires the cars to reduce their emission by certain percentage. So to achieve this Boschs research department has come up with new product to reduce the pollution emission.

6) Customer Results: Over the years Bosch is maintaining its outstanding results with respect to its customers. I. The claim invented for life expresses not only the core competence of the Bosch brand but also stands for the quality and customer benefit of their products and services. Apart from stressing the durability and reliability of their products it signals that their purpose is to enhance the quality of life of their customers. This implies a special responsibility felt by the company towards its customers. Bosch has adequate client diversification in domestic as well as international market so quality issue becomes extremely important. Thus Bosch has always stressed on value added products for its customers. To achieve high customer results Bosch also provide quality after sales service to the customers. Customers are intimated by the company regarding any major product development or technology adopted by the company. Bosch considers customers as one of the major valued asset of the company and thus try to maintain life long partnership with them.

II.

III.

IV. V. VI.

7) People results: People form the base for any organization. For any successful organization it is necessary to have an effective work force. To test the effectiveness of people bosch uses a variety of methods. I. Every leader is given a position based on competency map. The leaders are also selected based on this. II. People are considered as partners in Bosch. They are fully trusted. From 5 th December the company has launched a new initiative in which the bags of the workers are not checked. This has attracted immense positive reaction from the people. Who have shown it through higher motivation.

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III. IV. V.

VI.

VII.

VIII. IX.

Bosch has an internal training centre, which identifies training needs based on performance evaluation system. Internal and external training is given to employees. Internal is for soft skills development. Technical training is given to the personnels requiring technical know-how. In case of technological up gradation in the organization required raining is given to personnels. Employees have freedom to identify his personal improvement areas and convey it to the management. Also the management can also identify any required improvement and inform the employee about the same. Employees are given training according to needs identified by both. Semi yearly assessment is given to all employees, in which effectiveness of training is assessed. Lay off is considered only in the most extreme of cases. The people are divided into types of performers based on performance. The lower performers are selected for training and the exceptional performers are given appreciation by ways of incentives, recognition etc. Employees are sent to foreign countries to be trained in acquiring better techniques. Managers are given a special allowance for exceptional performance and in case of in-performance the reason for the same are identified and necessary steps are taken. An improvement plan is made by the direct boss and the super boss. Thus we see that the overall development of the personnel is taken care of not only by the immediate management but also higher management level. This makes the employee more motivated to work and improve.

8) Society Results: Social commitment is an essential principle underlying the corporate policy guidelines of the Company. Responsibility towards Society and Environment is guided by Bosch values, principles of social responsibility, work safety and environment protection. The Bosch principles of social responsibility include - human rights, equal opportunities, employment of handicapped people, free choice of jobs, rights of children, relations with associate representatives and their institutions, fair working conditions, occupational health and safety, clean and safe environment with social engagement. Besides the welfare initiatives within the factory premises, the Company is also promoting the interests of underprivileged and impaired sections of society through monetary contributions for the social work carried out by charitable organizations, old age homes and schools, and participates in women empowerment programs bodies. To sustain cultural values, the Company supports cultural activities through its fine arts club.

I.

II.

III.

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IV.

V.

VI.

During the times of natural calamities like floods, cyclone, tsunami, earthquake etc., the Company actively supports the affected people through voluntary participation and donations. The Health & Hygiene, Environment Education, Community Development and Vocational Training strategies are deployed through social responsibility models that are communicated across the Plant through posters, visual board handouts and guides. The aid in generating large number of volunteers willing to do their best towards the betterment of the society. Based on the need analysis of underprivileged Society around the Bangalore Plant which is in the heart of the city, schools run by City Corporation/Government were considered for projects where most of the children come from lower strata of the society. The Plant adopted a Primary Government School named Munichinnappa School in its neighbourhood and provided renovation of the buildings and up gradation of sanitation facilities. A comprehensive health checkup camp was organized by the Plant at the schools in the neighbourhood and nearby areas. The Plant supported differently abled people through the organization called 'Ability in disability Foundation (AID)' and provided raw material to the organization that in turn assembles components for the Company. The Company recruited around 35differently abled people for light jobs like component packaging inside the Plant. Manasi a social service initiative by the women employees of Bangalore Plant were honoured with appreciation award for CSR activities by the corporate Diesel Systems. The 'Clean Air' campaign was conducted for students in colleges & schools, auto, cab, and busdrivers and general public in order to bring about awareness on environment pollution and various measures to reduce the same. The Plant has adopted Dubewadi Village in association with Kalpataru Foundation, Dubewadi, Trimbakeshwar taluk, which is 50 kms away from the Plant.

. VII.

VIII.

IX.

X.

9) Key Results: Indicators: I. The company looks at two levels of results: Short term results and Long term results. Long term goal like attaining a turnover of Rs 90 billion by 2018 was identified. So short term goal was set at increasing turnover by Rs 20 billion. Later on it was seen that after a year the company achieved 40 billion sales within one year. So the long term goal was changed to Rs. 140 billion II. It follows two supportive strategies viz., BPS leadership trainings and New BPS Assessment model help align value stream culture with business Key performance Indicators (KPIs) III. To achieve total quality management the company trains 25 people every year on assessment. These people are trained on how to assess the work of others. These people are also sent to other company to assess them.

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Measures: I. In 2009 the company won DB award. II. Bosch Bangalore because of its cost cutting strategy has become a head quarter for diesel system all over the world. III. The company won the NDTV Car & Bike Award for Auto Component Manufacturer of the year IV. Bosch Apprentices won a total of 170 gold medals and Bosch Vocational Centre was declared the Best Establishment for the 38th time. V. Bosch also conducts internal assessment to continuously analyze itself and its performance.

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Bosch Balance Score Card

I.
Financial perspective

Sustained shareholders value

No. of members 23,589

No. of shares held 31,398,900

Productivity strategy
(A) IMPROVE COST STRUCTURE: 2011(qy1) 20858 Na 4041 2744 2010 66305 8461 12028 8589 2009 47498 5855 7934 5906

Sales Of which exports PBT PAT

Bosch has 85% of its earnings by diesel ( engines and other auto ancillary) RETURN ON CAPITAL EMPLOYED : In the 2nd Quarter 2011, our sales recorded a figure of 2024 crores or a growth of 22% over 2nd Quarter 2010. This has happened primarily due to overall good performance by diesel, packaging technology as well as our machine building departments have done well overall.

(B) OPERATING INCOME : 2011 35 2010 48

Operating income

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(C) EXPENDITURES: a. During the 1st Quarter of 2011, material cost showed a rise compared to 2nd Quarter 2010 from a level of around 54% to nearly 56.6%. This increase is on account of three factors, One is the general and sharp increase in raw materials such as copper, steel, aluminum, etc.; second one is on account of increase in Euro rate compared to Indian Rupee. And thirdly, there was also some amount of mix effect on more of those products which have higher material content like starters and generators compared to other products. So these three factors led to this increase of nearly 2.5% points from 54% to 56.6% as far as this quarter is concerned. b. Wage cost, no major thing to report with cost went up by about 18% over previous year 2nd Quarter mainly on account of normal increase in salary levels which are affected from January 2011. Also increase in wage cost was primarily due to cost of living Index as well as our contractual commitment increase that they had agreed. Other than that no major changes. They have had to add some people because when turnover grows by 2526% for the first six months the company could not have done it with the same existing number of people. So the number of people also has been increased by about 800 to 900 people. But all put together against a turnover increase of about 22-23% ranges and the employee cost has gone up by about 17.8%. c. Depreciation amount has gone up by about 3.5% but far less than the increase in turnover. As they have started increasing our capital expenditures, most of these expenditures will get put to use sometime in the 4th Quarter of this calendar year. So while they are incurring capital expenditure the depreciation cost has still not started hitting them. So they continue to enjoy the benefit of lower increase in depreciation compared to the turnover increase. Other expenditure other than material, labour, staff and depreciation, these have gone up by only about 2 percentage points largely on account of certain oneoff items that was there in 2nd Quarter 2010 then not being repeated in 2011 as well as certain items not being incurred in the 2nd Quarter. So this overall expenditure containment as led to our profit before other income interest and exceptional items going up by about 21% compared to the previous 2nd Quarter in terms of absolute amount, it has gone up from 270 crores to 329 gross. Other income went up quite substantially because of their higher treasury income both on account of higher profit from share of marketable securities as well as interest income, etc., So that has led to their profit before tax going up by about 29% from 312 crores to 401 crores, a growth of about 29%. Then due to lower tax rate this year consequent to some of the treasury income not being taxable, as they are in the nature of long-term capital gains, the companies profit after tax has even grown higher than the growth in profit before tax. So net profit after tax has shown a growth of 33% from the 2nd Quarter 2010 figure of 210 crores. (D) Actual sales in 2011 is 4097 crores. PBT & PAT have also grown quite well at around 3334%. (E) Earning per share in first half of 2011 was Rs. 176 per share.

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II.

Customer perspective :

1. Price: (a) Customers are OEMs eg. Tata , Mahindra , Maruti etc, as there business is mainly of B to B type. (b) There products are mainly PF 51,PF 45, PHEK, single cylinder pump , multi cylinder pump, A pump and fuel injection pump.

Thus price depends upon the size of the order and customers specification about the product.
2. Quality: (a) The company follows TQM and EFQM model, and they follow a quality inspection system which they apply along their production process, hence they have achieved 0% rejection of the order. Rejection % = no. of orders rejected/ total no of orders *This is zero for the company. 3. Partnership: They consider all stakeholders as their partners and they have not entered into legal partnership with any of their customers. 4. Brand: CRISIL has rated it as AAA.

III. Internal perspective:

1. Process landscape: Source value addition Company works on lean excellence. Core process- customer management process ( new business, new order) 1. 2. 3. 4. 5. 6. 7. At service level company goes for post delivery process. MSD- improvement on continuous basis. InfoTech in facility management. FCM- faculty management process, linked to management. For delivery process company works under integrated process. Company follows 16949 ISO standard. It is a tier 2 supplier. Industrial products manufacturer. Manufactures 3000 pumps per day. Time taken 1 to 5 months. delivery

PF 45Lead time-15.23 days

Value added time- 23185 sec

Size of lot 20000 per mnth PF 51 Lead time- 26.17 days Size of lot- 8000 per mnth

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Scope Of PF 51- NANO, MAXIMO

PHEK- 98% locally produced components 2% components are being outsourced Based on Orders Company can make changes in its production level. Companys inventory- inventories lying on floor 15.17 days to 34.17 days Company works on CIP CONTINUOUS IMPROVEMENT PRACTICE Percentage involvement = (associate quality criteria )/ (total associates) Total associate = permanent employees + temporary+ OJT (It involves commitment, support and involvement of the employees.)

2. Quality: Company also works on continuous improvement by a quality circle formation, in this employees share problems and other tools of cause and effect relationship with respect to problem solving. It includes 300 teams which conduct meetings on regular basis. Company classifies the problems as : A- Problems which can be solved by employees B- Problems involving management C- Problems which require investment These teams have won various awards , on an average each year they bag 20 prizes for YOUNG MANAGER and 1 international award each year. Company also works on cellular facility layout (u- shaped) which has made a decrease of lead time of inventory from 26.17 to 23 days.

3. CUSTOMER MANAGEMENT PROCESS:-

Company considers all its suppliers as partners. It focuses mainly on the large suppliers for building up the relationship.
4. INNOVATION: Company innovated emplastic i.e. use of plastic instead of aluminum in certain components of the auto ancillary component 5. LEARNING AND GROWTH PERSPECTIVE: (a) EMPLOYEE COMPETENCY- Company provides on the job training once in year to its employees. And after 6 months it checks for training effectiveness. (b) TECHNOLOGY: 1. Common rail fuel injector pumps, 2. PF51 diesel efficient pump for NANO.

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CHAPTER IV Angel Broking Pvt. Limited

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ANGEL BROKING BUSINESS EXCELLENCE MODEL

1) Leadership: I. The companys CEO is Mr Dinesh Thakkar. He is a gentleman who started his career as a sub- broker for another company. He with his experience has built the company from scratch. He understands the needs and requirements of all the employees. All the higher level employees are experienced personnels with exceptional skills in their respective departments. The company gives every employee the chance to prove their capabilities. The Hr manager in fact shared some instances in which some employees had been promoted to higher management levels. The company follows an open door philosophy. The managers, executives can be accessed by any of the employees. In fact the HR manager stressed on the point that how much they want their employees to speak openly about any problems which is being faced by them. The company personnels also pointed out that they are exceptionally bothered about everyone. The organizational structure is well defined and the responsibilities of each individual specified. The sales department and service department has been segregated to bring in more efficiency.

II.

III.

IV.

2) Strategy:

Angel broking has implemented its mission and vision by developing a stakeholder focused strategy that takes account of the market and sector in which it operates. The strategies developed by angel are as follows: I. To concentrate on retail centric research with a focus on small and mid cap segment. II. Development of branch concept for personalised service III. Maintaining clearance and transparency in all of the dealings IV. Effective cost management to maintain a substantial profit for their company V. Development of web enabled back office software helping in quick and effective dealings in the terminal VI. Innovation and development of Angels own services like Angel Gold and Angel Wealth Edge. VII. To maintain steady growth of the company in the market, angel is constantly strategising to improve its network strength. Thus by developing these policies and strategies Angel has been able to create the highest number of registered sub-brokers on NSE.
3) People: Angel Broking has a Research Division to suggest its clients better opportunities of earning profits. Research Division studies the balance sheet, cash flow statement and other financial statements of the other companys and suggest the shares of those companies to the clients. II. One of the values of Angel Broking is Teamwork according to which all the employees of the organization are supposed to work as a team and are treated as equal. I.

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III. IV. V. VI. VII. VIII. IX.

Angel Broking has a separate set of rules and regulations for its clients known as KNOW YOUR CLIENT (KYC). They adopt a sub-broker contest for its sub-brokers. The sub-broker which gets the maximum revenue is awards. This is a kind of motivation for its sub-brokers. They have a leadership academy. Under the leadership academy are the Productivity Jockeys. These Jockeys train a batch of 4 to 5 new recruits, on the basics of broking. Angel Broking also has a common training programme on 1 day for all its new recruits. For the sales department a Career Progression Programme is organized for 3 days. Each employee on joining is given an employee code which is generated within 48 hours of joining. Angel Broking has Employee Engagement Programme named SAMPARK is held for the employees to promote mutual trust and bond amongst them. Angel Broking also has an Employee Retention & Reward Initiative where by two contest for its new employees named i) SRINT AND ii) RACE. Under these two contests new employees are given a months target to get maximum number of clients. And the one who gets maximum number of clients gets a monetary reward.

4) Partnership and Resources:

Angel plan and manage external partnerships and internal resources in order to support strategies and policies of the company. The partnership policies adopted by Angel are as follows: I. Angel is the first broking house in Pan India whose 20% stake has been adopted by The International Financial Corporation(IFC) II. Angel shares a partnership with Birla Sun Life Insurance for its Life Insurance Policies. III. Angel has the highest number of registered sub-brokers in NSE IV. Angel maintains a strong partnership with its internal resources like the fund managers and the research analysts so that the company could provide the benefits to the customer and also earn profits. V. At present Angel has over 2500 business associates in the market.

5) Product, Process and Services: I. The company has fixed practice for its services. To provide its services the company has developed 24*7 Web enabled back office software. II. The company also has the system of Online Trading where by its clients can make use of the services of the company from their place. III. The company suggest stocks of various other companies based on two criteria: i) technical calls. ii) fundamental calls IV. The company provides live chat support system to its clients. V. Angel Broking has also developed Mobile Trading Software known as Angel Swift. VI. Angel Broking has Angel Diet application trading software for its day traders. It also has the facility of shortcut keys which facilitates faster access. VII. Process: The sales department looks for prospective customers and acquires new clients. A KYC form is filled by the sales personnels to get more information about the client. The sales personnel bring the document to the back office who open an account for the

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client. They check the credit background of the client and the amount of money that the client wants to invest. They open the account for the client. They give client a basic idea about how to invest, and tricks of investing. They maintain a regular contact with each client on their account balance and suggest them on how to manage their account. In case a client has not been active for some time they contact them on their reason of their passiveness and try to give them a feasible solution.

6) Customer Results: Angel follows the motto consumer is king which has helped them achieve outstanding results with respect to the customers. Presently Angel maintains a base of over 838201 customers and is now one of the top 3 broking houses in India. I. Angel focuses mainly on Retail centric research and thus maintains a customer base that ranges from customer investing Rs. 10,000 to even the Future end options customers who deal in crores. II. Angel was the first broking house who developed the branch concept to provide personal attention to each and every customers. III. To follow the company ideal to make our customers smile Angel follows a quality mindset to look after customer interests above their own. IV. Even the green colour in the logo of Angel signifies customer supportive unit.

7) People Results: I. The firm has a separate leadership academy to train and develop the people for the job. The training is provided to not only new employees but also, the old employees. For the new employees they are given basic introduction about the company, and sales employees are given a separate three work shop to develop sales skills. II. The company provides every employee with a career progression plan. This plan gives the employee a clear perspective of their future plans in the company. The company has a New 30 and New 60 training program. These programs are organized by the leadership academy. They are the constant growth program to see constant growth of the employees. After training sessions the HR department asks the participants to fill a questionnaire which has been specifically designed to test the participants learning. HR department conducts surprise visits to Branches to see the live working of the branch. The employees are bifurcated based on their performance into super star, star, back bone 1, back bone 2 and struggler where struggler refers to low level of performers and super star refers to extremely good performers. The super stars are awarded by being awarded incentives and recognition. The strugglers are not laid off rather the reason for their lack in performance is identified and training is provided to improve on the same. The attrition rate is analyzed and justification for the same is researched.

III.

IV.

V. VI.

VII.

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8) Society Results: I. Angel initiated Investor Guidance Series with the launch of seminar in Mumbai and announced to conduct 100 such educative and informative seminars all across the country. II. Angel also organises Stock Market Educative Program in Top Business Schools of India conducted by Top Research Executives of the company. 9) Key results: I. Indicators: 1. The company is one amongst the top three brokerage firms. 2. It has collaboration with Birla sun for the insurance business. Birla is a well known name in the industry. 3. The company is eyeing at not only the companies but also the individual investors. 4. The company has 100% transparency in all its practices. Every transaction is made after getting the confirmation of the client. A record of the telephone call is maintained by the company to avoid future dispute.

II.

Measures:
1. The company has been awarded major volume driver for 6 consecutive years. 2. Awarded the best contributor in investor education and category enhancement of the year. 3. The company involves itself in self assessment and identifies key challenging areas.

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ANGEL BROKING BALANCE SCORE CARD

FINANCIAL PERSPECTIVE:
Market capital: Rs. 725 crore (January 27, 2006) Revenue generation: companys revenue generation is by the brokerage it earns Revenue earned= percentage of brokerage* amt of money invested 1. Percentage of brokerage: a. Intraday = .04 b. delivery= 0.4 c. future/option= depends on negotiation Other financial statements of the company were not available as it is not a registered company and moreover those statements were kept confidential.

CUSTOMER PERSPECTIVE:
a.) B2B: channel sales, acquisition of sub broker, 9000+ franchisee, investment more than Rs. 5, 00,000 required B2C: investment >10000 b) Service / relationship: KYC know your clients. Company gets the forms filled by the clients. Provide them a code within 48 hrs of registration and then call up their clients on personal basis. c) Quality: company works on the policy not to betray your customer for sake of achieving targets d) Trading channel partners: BANK OF INDIA, ALLAHABAD BANK, DEUTSCHE BANK, IDBI, SCB, SBI, HDFC etc. e) Value added services for NRIs. NRI@angeltrade.com INTERNAL PROCESS PESPECTIVE: 18983 Terminals 610 VSAT 898201 customers 4093 direct employee 136 branches

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Equity tradinging

NSE, BSE

Broking Business Core Business

Commodity trading Currency trading

NCDEX, MCX

MCX NSE

e- Trading Wealth Management and distribution Branches

Life insurance

Portfolio management

Mutual Fund

IPO advisory

Operation: 8:30 am - Through conference call (pan India) recommendations are provided for Nifty and BSE level. 9:15 am Trading starts. 3:30 am Trading ends. Every day they are provided with support price, stop loss point, upper and lower resistance level. Inovation: They have various innovative products such as Angel gold. Learning And Growth Perspective: Training: They provide both on the job and off job the training.

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