PROJECT REPORT

ON

Production Process
IN

SUBMITTED TO SIKKIM MANIPAL UNIVERSITY IN THE

PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
AWARD OF MBA DEGREE

Session : 2011-13

IN LEARNING CENTRE—Winsoft Technologies

c32nd floor janak puri
Submitted To: - Submitted By:-
Controller of Examination SAMRESH
S.M.U. Roll No. 511220739
 TABLE OF CONTENTS

1. INTRODUCTION

2. REVIEW OF LITERATURE

3. COMPANY PROFILE

4. DATA ANALYSIS AND PRESENTATION

5. CONCLUSION AND RECOMMENDATION

BIBLIOGRAPHY
QUESTIONNAIRE
 ABSTRACT
No professional curriculum is considered complete without work experience. Each
individual who undertaking management education has to pass this phase before he/
she considers himself fully qualified as managers.

Entering the industry is like a stepping into a New World. At first everything seems
strange but with passage to time one starts understanding all that is happening
around him.

The management sciences gives all the fundamental concepts that are applicable in
market but leaves the individual to work as it application. It is just a matter of
applying the theory you know to give a practical situation. And there is no better
place to learn the market itself.

The project report is a effort put in job analysis of Production department

I hope the company would find the study worth the effort.

[SAMRESH]
 ACKNOWLEDGEMENT
First of all I thanks to almighty god. He creates everything. THEN TO MY ALL
SOPPRTIVE PERSON WHO PROVIDED ME TREMENDOUS GUIDANCE,
I owe my gratitude to the entire staff of the “ESCORTS INDIA LIMITED” who
provided me the necessary and relevant information towards the completion of my
survey report. I thank them for the critical suggestion and sound logical and design
improvement during the project. Without their timely help it has been very difficult
for me to submit this project well me on time.

The project would not have been completed without the guidance and
encouragement of “Mr. TAJEEV RANJAN ” [Head – Production] who provided me
all the facilities and also helped me in choosing my project.

I am very thankful our college guide for giving me the input and support, without
her guidance the project would not have been completed

[ SAMRESH]
 DECLARATION

I hereby to declared that my project on operation management on the titled

"PRODUCTION PROCESS" prepared by me under the guidance “Mr. RAJEEV
RANJAN ” is my original work findings in there part are based on the data
collected by me during the course of object work while preparing this report. I have
not copied from other project report submitted for a similar purpose.

[SAMRESH]
 PREFACE

It is well evident that work experience is an indispensable part of every professional

course. In the same manner practical training in any organization is a must for
each and every individual who is undergoing management course with the practical
exposure one can't consider himself as a qualified manager.

Hence to fulfill this requirement, my training was completed in ESCORTS INDIA

LIMITED

Entering the organization is like stepping into altogether a new world. At first,
everything seems strange & unheard but as the time passes one understands
the concept and working of the organization & thereby develop professional
relationship.

Initially it felt as if classroom study was irrelevant and it is useless in any concern's
working. But gradually it was realized that all the basic fundamental concepts
studies are in one or the other ay to the organization but how and what can he done
with fundamentals depends upon the intellect and capability of the individual. It
is .just a matter to modify the theory so as to apply it to a given practical solution.

I sincerely believe that there is no better place than the organization itself to learn
the practical side of the management.

SAMRESH
 OBJECTIVES OF STUDY

Any survey report begins with stating the objectives of the study; therefore, the first step
in the survey analysis deals with the objectives. Next, the methodology adopted to collect
the information required will be dealt with, that is, the survey design will be described.
General, data sources include secondary and primary sources. Secondary can
provide a range of information and should be consulted first. If they do not provide
necessary information to the research problem then primary data is to be collected.

THE MAIN OBJECTIVES OF STUDY ARE: -

a) Efficiency or productivity expressed as output per unit of input.
b) Effectiveness: It concerns expressed whether a right set of outputs is being
produced. Where efficiency may refer to “doing things right”, effectiveness may
mean “doing the right things”.
c) Quality: Quality is the extent to which a product or service satisfies the customer
needs. The output has to conform to quality specifications laid down before it can
be accepted
d) Lead times: Manufacturing lead-time or throughput time is the time elapsed in the conversion
process? Minimization of idle time, delays, waiting etc. will reduce throughput time.
e) Capacity utilization: Percentage utilization of manpower, machines etc. is
calculated in order to enhance overall capacity utilization.
f) Flexibility: If the conversion process has the flexibility of producing a
combination of outputs, it is possible to satisfy a variety of customer needs.
 RESEARCH METHODOLOGY

Research methodology is simple framework or plan for the study that is as guide in
collection and analyzing the data. It is the blue print that is followed in completes the
study. Thus, good research methodology ensures the completion of project efficiency and
affectivity. Since there are many aspect of research methodology, the line of action has to
be chosen from the variety of alternatives, to choose the suitable method through the
assessment from various alternatives.

Research methodology gives the researcher an opportunity to put forward his argument
for having opted for certain alternatives and also at the same time he can justify his ruling
out some other possibility likes. Why research study has been undertaken, how the
research problem has been formulated what data has been collected, what particular
technique if analyzing the data has been used and lot of similar type question are usually
answered when we talk of research problem in study.

Keeping in view the above stated objectives the following methodology was adopted:

 The Marketing Research Process:-

 Define the problem and Research Objectives: -

The first and main step of any research is to define the relevant problems
or objective for which the researcher wants to do research.
 Develop the research plan: -

To makes the plan for overall research as how, when, where and from
whom researcher will collect the data.
Sources of Data Collection

In order to carry out the resent study, the data used is secondary in nature and is collected
from published sources i.e. websites, newspapers, business magazines, journals, etc.

Analyze the information: -

After collecting the data the next step is to analyze the information.

Present the findings: -

To make a summary on the basis of analyzing the collect data and find out the situation.

Make the decision: -

The last step is to take a decision on the basis of finding that what action should be
regarding the findings

INSTRUMENTS TO BE USED:
 INTERNET
 MAGAZINES
 JOURNALS
 NEWS PAPERS
 RESEARCH DESIGN

 “A research design is the arrangement of condition for collection &

analyzing of data in a manner that aims to combine relevance to the research
purpose with economy in procures."

 “Research design is the framework or the blueprint or foundation for

conducting the research project”

 “Research design is the conceptual structure within which research is

conducted it constitutes. The blueprint for the collection, measurement and
analysis of data”

TYPES OF RESEARCH DESIGN

 Exploratory Design

 Descriptive Design

 Experimental Design

(A). Exploratory Design:-

Exploratory research studies are also termed as formulative research studies. The
main purpose of such studies is that of formulating a problem for more precise
investigation.
(B) Descriptive Design:-
Descriptive research is concern with describing the characteristics of a population of
phenomenon.
(C) Experimental Design:-
Experimental research studies arc those where the researcher test the hypothesis of
casual relationships between variables.

I have used exploratory as well as experimental research design in this project

SCOPE OF THE STUDY
The scope of the study has been concised to the exposure of derivatives.

METHODS OF DATA COLLECTION:-

 Primary data: -
Primary data is the data collected specially for a specific purpose. The methods used for
its collection are personal discussion & questionnaire etc.
The method used in collecting primary data in my research was questionnaire. In this I
asked a set of predetermined questions in a predefined order, the answers given by the
respondents were used to fill up the questionnaire.

 SECONDARY DATA:

Secondary data consists of information that already exists somewhere and was collected
for another purpose, which may not be the same as the purpose of research. Secondary
data used here was the Performa of performance appraisal used in Escorts .

The secondary data provide a starting point for research and offer advantage of low cost
and ready availability.

Questionnaire: -

A questionnaire was prepared which consisted of open-ended questions with multiple

choices. The questionnaire used was structured type of questionnaire. It was prepared
taking into account the factors, which were to be analyzed to know the process of
Performance Appraisal.

This method was preferred as it is economical, given more information and the response
is very good.
 INTRODUCTION

Production:

The word production is described in various dictionaries as the act of producing,

manufacturing, creation of an artistic work, a literacy production, and a presentation – as
of a play or other artistic performance.
The word production implies to us for all practical purposes as
Creation of a Utility or Services.

Management:

The word management is described in the various dictionaries as managing or handling,

control, direction, administrative skill, act or art of managing, to conduct the working of.

The word management implies to us for all practical purposes as Art of Managing.
Production Management
In short production management is The Art of Managing the Production. It basically
concerns itself with the conversion of inputs into outputs.

DEFINATION OF PRODUCTION
MANAGEMENT

Elwood S. Buffa has defined the term as:

“Production management deals with decision making related to production process so
that the resulting goods or services are produced according to specifications, in amounts
and by the schedules demanded and at a minimum cost”.

TASKS IN PRODUCTION MANAGEMENT

i. Specifying and accumulating the input resources, i.e., management, men,

information, materials, machine and capital.
ii. Designing and installing the assembling or conversion process to transform the
inputs into output, and
iii. Coordinating and operating the production process so that the desired goods and
services may be produced efficiently and at a minimum cost.
The production department in an enterprise is not only concerned with the full
exploitation of production facilities but also the human factor that indirectly affects the
production, utilization of latest techniques of production and the production of quality
goods to the satisfaction of customers of the product.
The various activities that form scope of production function can be studied in the
following broad areas:

Product selection Activities relating to

& Design production system
Designing
Production
Control
Facilities
Location

Inventory
Control Method
Study

Production Facilities layout

planning Capacity & materials handling
Planning

i. Product selection and design: the product mix marks the production system
either efficient or inefficient. Choosing the right products keeping the mission and
overall objective of the organization in mind is the key to success. It is the design
of the product, which makes the organization competitive or noncompetitive.
 ii. Activities relating to production system designing: decision related to the
production system design is one of the most important activities of the production
management. This activity is related to production engineering and includes
problems regarding design of tools and jigs, the design, development and
installation of equipment and the selection of the optimum size of the firm. All
these areas require the technical expertise on the part of the production manager
and his staff.

iii. Facilities location: the selection of an optimum plant location very much depends
upon the decision taken regarding production engineering. A wrong decision may
prove disastrous. Location should as far as possible cut down the production and
distribution cost. There are diverse factors to be considered for selecting the
location of a plant.

iv. Method study: the next decision regarding production system design concerns
the use of those techniques, which are concerned with work environment and
work measurement. Standard method should be devised for performing the
repetitive functions efficiently. Unnecessary movements should be eliminated and
suitable positioning of the workers for different processes should be developed.
Such methods should be devised with the help of time study and motion study.
The workers should be trained accordingly.

v. Facilities layout and materials handling: plant layout deals with the
arrangements of machines and plant facilities. The machine should be so arranged
that the flow of production remains smooth. There should not be overlapping,
duplication or interruption in production flow. Product layout where machines are
arranged in a sequence required for the processing of a particular product, and
process layout, where machines performing the similar processes are grouped
together are two popular methods of layout. The departments are layout in such a
 way that the cost of material handling is reduced. There should be proper choice
of material handling equipment.

vi. Capacity planning: This deals with the procurement of productive resources.
Capacity refers to a level of output of the conversion process over a period of
time. Full capacity indicates maximum level of output. Capacity is planned for
short-term as well as for long term. Process industries pose challenging problems
in capacity planning, requiring in the long run, expansion and contraction of
major facilities in the conversion process.
Tools for capacity planning are marginal costing (Break Even Analysis), learning
curves, linear programming, and decision trees.

vii. Production planning: the decision in production planning include preparation of

short-term production schedules, plan for maintaining the records of raw
materials, finished and semi-finished stock, specifying how the production
resources of the concern are to be employed over some future time in response to
the predicted demand for products and services

viii. Production control: after planning, the next managerial production function is to
control the production according to the production plans because production plans
cannot be activated unless they are properly guided and controlled.
Acc. To Soriebal and Lansburgh “Production control is the process of planning
production in advance of operations; establishing the exact route of each
individual item, part or assembly; setting, starting and finishing dates for each
important item, assembly and the finished products; and releasing the necessary
orders as well as initiating the required follow-up to effect the smooth functioning
of the enterprise

ix. Inventory Control: inventory control deals with the control over raw-materials,
work-in-progress, finished products, stores, supplies, tools, and so is included in
 production management. The raw materials, supplies etc should be purchased at
right time, right quality, in right quantity, from right source and at right price.

In any production function 3 basic factors will be there

Input Transformation Output

A series of sequential activities and operations, which are indispensable in transforming
material from a given form to a desired form, indicates production.

We now understand that the subject or word “PRODUCTION” is not restricted to only
manufacturing activities as normally will be visualized. End products may be finished
components or consumer products, completed paper work or documentations, serviced
customers or serviced patients. In short it must be some kind of value added products so
that outputs are worth more than just the sum of individual inputs.

According to Peter Drucker “Production is not the application of tools to materials

but is the application of logic to work.”

Obviously we all may be falling in any one of the categories and involved in the
production function. Hence it is very vital and important to know all aspects of this
management science with proper depth and detail and empower us with the skills of
production management to emerge as a versatile and efficient manager.

Production and operations management concerns itself with the conversion or

transformation of inputs into outputs using physical resources so as to provide the desired
utility/utilities – of form, place, possession or state or combination thereof – to the
customer while meeting the objectives of effectiveness, adaptability or customer
satisfaction & efficiency.
 OBJECTIVES OF PRODUCTION MANAGEMENT
Every system (or organization) has a purpose, certain objectives & goals to achieve since
the objectives of an organization have hierarchical structure, sub-goals lead to
accomplishment of goals, which contribute, to the achievement of objectives and
eventually the purpose or mission of an organization .It is very important that these
objectives should be unambiguously identified, properly structured and explicitly stated.
In general terms, the objectives of an organization may be to produce the goods/or
services in required quantities and of right quality as per schedule and at a minimum cost.
Thus quantity, quality and time schedule are the objectives that determine the extent of
customer satisfaction. If an organization can provide for these at a minimum cost then the
value of goods created or services rendered enhances and that is the only way to remain
competitive. Thus various objectives can be grouped as- performance objectives and cost
objectives.

Performance Objectives
The performance objectives may include:
g) Efficiency or productivity expressed as output per unit of input.
 h) Effectiveness: It concerns expressed whether a right set of outputs is being
produced. Where efficiency may refer to “doing things right”, effectiveness may
mean “doing the right things”.
i) Quality: Quality is the extent to which a product or service satisfies the customer
needs. The output has to conform to quality specifications laid down before it can
be accepted
j) Lead times: Manufacturing lead-time or throughput time is the time elapsed in the conversion
process? Minimization of idle time, delays, waiting etc. will reduce throughput time.
k) Capacity utilization: Percentage utilization of manpower, machines etc. is
calculated in order to enhance overall capacity utilization.
l) Flexibility: If the conversion process has the flexibility of producing a
combination of outputs, it is possible to satisfy a variety of customer needs.

Cost objectives
Attaining high degree of customer satisfaction on performance front must be coupled
with lower cost of producing the goods or rendering a service. Thus cost minimization is
an important systems objective. Costs can be explicit or implicit. These could be tangible
in economic terms or intangible in social cost terms- such as delayed supplies, customer
complaints etc. While managing production systems we must consider the visible and
invisible, tangible and intangible costs some examples of these costs are:

a) Explicit costs:
 Material cost
 Direct and Indirect labour cost
 Scrap/rework cost
 Maintenance cost

b) Implicit costs:
 Cost of carrying inventory
 Cost of stock outs, storage, back-logging, lost sales
  Cost of delayed deliveries
 Cost of material handling
 Cost of inspection
 Cost of grievances, dissatisfaction
 Down time cost
 Opportunity cost
For the purpose of managerial decision-making, we should consider the total
relevant systems costs including visible and invisible. A longer term cost
implication rather than only short-term will help in arriving at better decision.

OPERATIONS MANAGEMENT DECISIONS

The process of management
Essentially management can be considered as a process of planning, organizing,
coordinating and control.
There are different ways in which the production management functions can be grouped .
For instance, all the decisions concerning the production system could be divided as:-

1. Periodic decisions which include selection, design and updating of resource,

structure, systems and procedures.

2. Continual decisions which are required in day-to-day operations and control of

production systems.

Value Analysis
Value analysis is a cost reduction & control technique, which operates by attacking the
basic design of the product or service.
Value analysis is “an organized procedure for the efficient identification of unnecessary
costs by analysis of function --function being that property of product which makes it
work or sell.”
This means value analysis involves:-
1. Identification of function- the first & most important, step in the value analysis is to
make a formal statement of the function of the product or service.
Function means- what is purpose of operation?
What does it do?
A lamp function is to ‘give light’
A beam function is to ‘support weight’
A cheques function is to ‘transfer cash’
A shaft’s function is to ‘transmit force’.
- Identification of function of product
- Examine alternative way in which this function can be done.
- Choosing the least cost alternative.
Value Engineering – The application of value analysis techniques at the design stage of
a product or service.
Value
1. Value may be equated with a price, which is that which must be given, done
sacrificed to obtain a thing and any product or service will have several different
values.
Exchange value, the price a purchaser will offer. This is sum of two parts, value due
to usefulness & the value the ownership itself bestows.
Exchange value = use value + esteem value.
Use value = the price the purchaser will offer in order to ensure that the purpose (or
function) is achieved.
Esteem value = the price which is offered beyond the use value e.g. possession of
----------?
Exchange value is set by the market & is influenced by the usefulness & esteem in
which the product is held.
2. Cost value (intrinsic value)- sum of all the costs incurred in providing the product.
Profit = exchange value – cost value
The task of a value analyst is to increase exchange value & decrease cost value.

Carrying out a value analysis exercise:

Value analysis team – it must consist of a small core of experienced people + concerned
people + intelligent laymen to raise basic & fundamental questions.
A Structured Approach – Gage has laid down a 12-step process for conducting value
analysis exercise.
1. Select the product to be analysed based on
- Multiplicity of components.
- Large forecast usage.
- Small difference between use value & cost value.
- Considerable market competition.
- A long designed product.
- Generation of considerable documentation.
- Creation of organizational complexity.
2. Extract the cost of product – the cost required here is the marginal or out of pocket
cost – as overheads can distort the picture. Details of individual components at this
stage are not required.
3. Record the number of parts – the larger the number of parts, greater the chances of
reduction.
4. Record all the functions – purpose of the product.
5. Record the number required currently & in future.
6. The above five questions are the fact finding – they firmly establish the bases upon
which all further work is created.
7. Determine primary function from all the functions already listed in ‘4’. Some
priority must be established among functions.
8. List of all other ways of achieving the primary function – here ‘creativity &
brainstorming’ plays important role. This should include part wise/component wise
discussion.
9. Assign costs to various alternatives.
10. Examine the 3 cheapest alternatives.
11. Decide which idea should be further developed.
12. See what other functions need to be incorporated – reexamining of step 11. Does its
use contribute value.’
Can anything be removed without degrading the product? While the new product is
being developed the value analysis team can undertake the final step.
13. Ensure the new design is accepted. This will mean:
- A model
- Anticipated savings.
- Anticipated capital expenditure.
- Improvement in value.
- Critical path analysis.

Gage’s 12- value analysis.

1. What is it?
2. What does it cost?
3. How many parts?
4. What does it do?
5. How many functions are required?
6. What is primary function?
7. What else will it do?
8. What will that cost?
9. Which 3 alternative ways of doing the job show the largest difference between ‘cost
& use value’?
10. Which ideas are to be developed?
11. What other functions & specification features must be incorporated?
12. What is needed to sell the ideas & forestall ‘road blocks’?

Production System

POLICY
 PLAN

PRODUCTION
FUNCTIONS

POLICY
The overall specification of production system must commence at policy stage by
determining company’s aims in market terms within the corporate strategy.

PLANNING
To achieve this objectives tool employed is production planning. The future can not be
for seen, It can only be gust mated and therefore for obtaining objectives effectively,
economically and efficiently the best course of action among the available alternatives is
chosen and all the pros and cons, strengths and weaknesses of available means are
weighed and then the course of action is determined this is termed as planning phase. A
good planning will ensure systematic procedure, improved methodology, control at
appropriate and strategic location to achieve and attain desired efficiency.

PRODUCTION FUNCTIONS
Once company has formulated the policy and plans the next logical step is to go for
production. Production Management subject deals in detail about various production
functions, which we will deal in detail in subsequent chapters.

Inter relationship of production management with other

areas of management:
A Marketing
 Identifying customer requirements
  Product Life Cycle
 Distribution
 Product
 Price
 Customer Feedback on Products
B Finance
 The Operation Budget
 Break Even Point Analysis
 Working Capitol
 Provision of finance for improvements
 Provision of info. on general condition of firm

C Accounting
 Cost Data
 Special Reports
 Data Processing Services
D Industrial Engineering
 Methods
 Work Measurement Information
 Plant Layout & Material Handling Info.
E Procurement (Materials Management)
 Determination of Items to be Purchased
 Delivery Schedules
 Updating info. On new products, materials and process
 Inventory planning & Control

F Personnel

 Recruitment, hiring and firing of people

 Training
 Labour relations
  Motivation to workers & Safety factors.
G Research & Development
 For ideas concerning new products, process and new tools for production

TYPES OF PRODUCTION SYSTEMS

Intermittent Continuous

Job Batch Mass Process

Production is an organizational function, which is responsible for the management

process intended to convert a set of inputs into a predetermined set of outputs in the form
of goods and services in accordance with the objective assigned to the management.
The function of production management is putting together inputs of men, capital,
information & energy and transforming them into products and services in the quantity,
quality, time and location that will best meet the organizational objectives.
It is as simple as to convert resources inputs into end outputs.
Complexity of production function is best studied by developing a conceptual
framework, which more precisely and effectively ties together all the
functional efforts, contributions, and knowledge with a common goal. This is
called “System Concept”
If a system is considered as complex a change in one variable within system will affect
many variables of the system. Thus in a production system, a change in production rate
may affect inventories hours worked per week, overtime hours, facilities, layout and so
on.

JOB TYPE PRODUCTION SYSTEM:

 Job production is the manufacture of a single complete unit by an operator or a group
of operators.
 Goods are produced according to definite customer requirements
 Manufacturing status depends on the receipt of specific items
 There is no assurance of continued demand
 This type of production is intermittent in nature

Job Production has following specific characteristics:

 Resources in a job shop are general rather than specialized
 Basic materials with different specifications can be used in many different jobs
 Equipments should be adoptable to different users/customers
 The skills of employees/operators would be wide enough to enable them to work
on any job
Limitations of Job Production are:
 Since each job is distinct in nature hence machines are general purpose and may
not be economical or efficient
 Machines need to be set up very frequently to suit needs of variety of jobs. This
may result in loss of production time
 Job execution location many times may be out of manufacturing unit
 As the resources such as manpower, process machine tools are employed on
varieties of non standard jobs it may not be used economically
 Productive techniques like work study, value analysis etc. may not be possible to
be introduced

Examples: Bridge building, ship building, installing a capital plant in factories

BATCH TYPE PRODUCTION SYSTEM:

In the batch production the work on any production is divided into operations, it
means that the work content of each unit is broken into a number of operations not
necessarily of equal work content, and the operators are again divided into groups.
The first group will then complete the first operations of all the units, passing the
batch as a whole on the next group and so on until the manufacture is complete on
that operation.

Salient features of Batch Production are as hereunder:

 Some degree of specialization of labour is possible.

 Capital investment is low
 The planning required to ensure freedom from idle and waste time is
considerable.
 The planning of resources can be done sufficiently and adequately, however
possibility of underutilization of certain machines and man power can not be
ruled out
 Cost minimisation is one of the criteria for considering the size of a batch
 The production control department can derive greatest benefits
Example: Pharmaceutical production.

MASS PRODUCTION SYSTEM:

This type is adopted when one or a few standard products are to be manufactured on
large scale. In this system demand for the product is continuous and ongoing. As
demand pattern is known well in advance all the resources can be planned very well.

Salient features of Mass Production are as hereunder:

 Planning for optimum utilization of resources can be ensured.

 A product wise layout and balance production line can be designed
 Semiskilled or even unskilled labour can be utilized; very small numbers of
skilled workers are required.
 High output rating automatic machines can be utilized.
 Maintenance or breakdown must be attended most efficiently and promptly
otherwise it may result into heavy loss of production
 There is lot of scope for introducing productive techniques to increase
productivity
 Product quality can be better controlled in this system

Example: Various Electrical appliances, Electronic components, Dry battery

cells. Etc.

PROCESS PRODUCTION:
 This system is an extended form of mass production in which manufacturing is
carried on continuously through a uniform sequence of operations.

Salient features of Process Production are as hereunder:

 Process production calls for the setting up of highly sophisticated automatic machines
as far as possible
 In this system usually one principal raw material is transferred in to several products
at different stages of the operations.

Example: Petroleum Refining, Heavy Chemicals etc.

Comparison of various production types Vs Production Capacity & Flexibility

We can observe that Job Type will offer highest production flexibilities however
production volumes will be lower.

Where as process Type will offer minimum or no flexibilities and generate very high
volumes.

Functions of Production Management & Production

Cycle:
The functions of production management were limited and also simple in the earlier days
where production was conducted on a low scale using very simple methods and
techniques and products manufactured were very simple.

With the progress of time new technologies have developed resulting into advance
products with large volume being produced. This has necessarily increased the
importance of the production management at the same time added responsibilities.

Classification of decision areas:

Production and operations management functions can broadly be divided into the
following four areas:
1. Technology selection & Management

2. Capacity Management
3. Scheduling/Timing/Time Allocation

4. System Maintenance

Some of the basic functions of the production management are as follows:

1. Design and development of production process

2. Production planning and control
3. Implementation of plan and related activities to produce the desired output
4. Administration and co-ordination of the activities of various components and
departments responsible for producing the necessary goods and services.
5. Monitoring and controlling of men, machineries and materials.
6. Developing system of monitoring through feed back
7. Comparing results and
8. Taking corrective actions.

In short production cycle can be defined as

Planning – Operations – Control.
 1.Planning.

3.Control 2.Operations

1. PLANNING:
Effectiveness and economy while engineering the production can be studied as
manufacturing the required quantity of a product of required quality in tune with the
required time by the best and economical method.
 Planning

Insight Experience Feelings Ideas Market Resources

Foresight Objectives regarding Economy & disposal
Assumptions kind of
Risks business

Effects on Business Effects on people outside business

Choice of Rational Course of Action

Action Plan or

Plan for Operation

To realize this objective the tool employed is known as production planning.

While designing the corporate planning control system it is indeed needed to chart out
both the long range and short time plans programme, procedure and policies using all the
insight, foresight and experience at disposal. It should take care of feelings, objectives,
risks, assumptions; it should be planned keeping in mind the kind of business (Like
seasonal or otherwise). It should utilize inputs of information from market and economy,
in short, utilize all information and input at your disposal.

2. OPERATIONS:
The second phase is operations. The production plan set the standard. The actions are
performed in tune with these pre-set details in this phase.
 Scope of Production (Operation) Functions
Quality Process Capacity Inventory Work force

 QUALITY: it is an important operations responsibility, which requires total

organizational support. Quality decisions must ensure that quality is built into the
product in all stages of production.
 PROCESS: these decisions determine the physical process or facility utilized to
produce the product. The decisions include type of equipment and technology,
process flows, layout of facilities etc.
 CAPACITY: capacity decisions are aimed at providing the right amount of capacity
of the right place, at the right time. In short run, available capacity must be allocated
to specific tasks and jobs in operations b scheduling people, equipment and facilities.
Long run capacities are determined by the size of the physical facilities, which are
built.
 INVENTORY: these decisions determine what to order, how much to order and
when to order. Inventory control systems are used to manage materials from
purchasing, raw materials through semi-finished products or work in process to
finished products.
 WORK FORCE: people who make the product are ultimate to any production
system without which nothing will be produced. Hence this is area of very crucial
decisions. It includes selection, hiring, firing, supervision, training, and above all
compensation. Managing work force in a creative productive and humane way is key
task for operation.

3. CONTROL:

It is always desirable to compare where we are standing at present and where we want to
go and accordingly corrective action can be initiated to bridge the gap
STAGES OF PRODUCTION:
1. Market research: it probes the market in attempt to ascertain the need for a new
product
2. Design for a prototype is prepared based on technical research and information
3. Design work to start to produce as basic unit.
4. Development work to start to develop a designed product

Control

Monitoring performance through feedback

Comparing results with pre-set targets
Corrective actions

5. Prototype production done to evaluate the product design, prepare, catalogues

etc.,
getting market feed back, experimenting and testing.
6. Pre-production: during this stage all the components of product as nearly as
designed are produced under as much as possible. Actual factory conditions using the
tools, equipments, raw materials, which ultimately are to be used on the production,
line.

These samples are very critically tested with micro accuracies for type tests and
performances. Some of them are sent to customers for field trials and feedbacks and
criticisms.
7. Manufacturing: the product after all the above steps and after all the corrections are
frozen for design and other parameters and then put into full production,
Initially a predetermined build up of finished product is manufactured to ensure and
take care of contingence, rejection etc. This is a confidence building stage for all
concerned.
Marketing can simultaneously start of the initial orders
The goods then leave for the warehouse and become the responsibility of the sales
organization.
Even after all the above steps and pre-production stage all bugs are not ironed out and
it is advisable to plan for initially low level to have the damage control within
manageable limits.
 Production Management Process Model
General View1
Detail view 1
Detail view 2
Detail view 3
Detail view 4
 INTRODUCTION

– A PROFILE

Two brothers made a small beginning of dynamic enterprise in 1944, Late

Shri. YUDI NANDA and Shri. HARI NANDA with little else but guts, imagination
and a determined will as their main capital.

They created ESCORTS in pre-partition Lahore. Lost everything, and then began all
over again in newly independent India. Built up the company environment far
industry-friendly that what it now.

The foundation of Escorts limited was laid in the formation of Escorts (Agents) ltd.,
on 17th October 1944 and Escort (Agriculture and Machines) ltd. In 1948, these two
were later merged in 1953 to form Escort Agents Pvt. Limited. The company’s
incorporation in its present name, Escort Ltd. was effected on 21 December 1959.

Having started from initially as a franchise for wasting house domestic appliances,
Escort has come a long way in manufacturing and marketing a range of products. It
has pioneered farm mechanization in India through import and distribution of
agriculture tractors.

In five decades Escorts has grown to become one of the top industrial conglomerates
in the country. The Escort group is operating in diverse field of

1. Agri-Machinery.
2. Information and material.
3. Construction and material handling equipment.
4. Automotive and railways ancillaries
MAIN TEXT
The area I have studied selection procedure, workmen appraisal, training and
development programs and safety policy of Escort Ltd. I have tried my best to
compile all the information, which I have received from my guide various other
sources during the project in Escort.

HRD MODEL

EMPLOYEE

RECRUITMENT & SELECTION

INDUCTION
*INTRODUCTION
*AWAIRNESS OF BUSINESS

MAINTANCE DEVELOPMENT
*RECORD
*PERFORMANCE APPRAISAL
*EMPLOYEE REWARD

*EMPLOYEE TRAINING & DEVELOPMENT

*POTENSTIAL APPRAISAL

*CAREEAR PLANNING

EMPLOYEE SEPRATION
 RESTART TO FILL THE MANPOWER GAP.
ORGANIZATION CHART

ESCORT LIMITED

ED: Engineering division.

AMG: Agri machinery group.
ECEL: Escort construction limited.
ASP: Auto suspension product
RED: Railway Equipment Division.
KMC: Knowledge Management Centre.
CHD: Crankshaft and Hydraulic Division.

NIKHIL NANDA
COO &Executive
Director

AMG ED ECEL CFO

A.K Chadda K.Havaldar Kamal Bali Shailendar Tandon
Group VP.HR/IR
A venkat madhavan

C.G.M (Corp. IR) R.K

Chilana

AMG-Head personal ECEL ASP/RED

K.S. Yadav Narendera Arya G.P Malhotra
 CORPORATE HR/IR

Group VP.HR/IR
A Venkat Madhavan

Chief General Manager

R.K.Chilana

Senior Secretary

Chief Manager Senior Manager (IR)

S.P.Srivastva
J.K.Banga

Asst. manager
Asst. Manager B.R.Bhatia
Shahid Raza

Executive
R.S.parmar

SBU’s/Division
personnel & head
Steno

Peon
Dhian shigh
India is the largest manufacturer of tractors in the world. The Indian tractor
industry closed FY’07 on a very positive note with 342000 units registering a growth
of our 30% over previous year. The governments focus on the agricultural economy
with increased rural lending ensuring availability of cheap finance led to the
growth. Exports stood at 37700 units in FY 07.

Tractor industry is categorized on the basis of power delivered by the engine

horse power (hp). 40-50 hp tractors primarily used in southern & western regions
due to hard soil conditions dominate Indian market. It is followed by range of 31-
40hp, which finds its market in soft conditions & well-irrigated northern state. the
tractors industry comprises 15 players, including 4 MNC’s & it led by MAHINDRA
& MAHINDRA ltd, tractors & farm equipment ltd & Punjab tractors ltd. Riding on
the back of normal monsoons 7 strong rural credit growth, during april-
november’06, overall tractor sales has grown by about 14% over the corresponding
period last year, to 196000 units. Backed by government’s initiative on rural roads
& better connectivity with major town & city, increase in area under irrigation,
improved agricultural performance & factors like increment in minimum support
price coupled with more emphasis on agricultural financing (total outlay for
agricultural financing which was Rs.109500 crores in FY’07 has been increased by
40% FY’06) will keep up

The momentum and industry is likely to achieve 20% growth in the current
financial year. Exports have also registered growth of around 60% during the first
eight months of FY’07 to 19300 units as compared to 12200 units in the same period
last year. Exports are expected to be mainly driven by multinational tractors
manufacturers who have made Indian an export hub for outsourcing of aggregates
and tractors .Hence, the growth in exports will depend on the level of outsourcing by
companies like L&T john degree and new Holland tractors and some domestic
manufacturers like Escorts & Mahindra & Mahindra, who have adopted aggressive
strategy for overseas markets.
 COMPETITORS IN THE MARKET

COMPETITORS

Branded Competitors Unbranded competitors

 Kirloskar -Vidhata
 Ruston -Harvert
 Lay land -Atulshakti
 HMT -Ajay bright
 Eicher -Bharat
 Mahindra&Mahindra -Prakash
-Field Marshall
 THE FOUNDING

Over six decades back two young men set out on a journey together armed with
little beyond intelligence, business acumen and determination and dreams aplenty.
They believed that India could only achieve total freedom with a breakthrough in
the field of agriculture and mechanization would have to rule the fields. Their
youthful enthusiasm had kindled the hope that one day they would make a mark of
their own. They were in fact writing the first chapter of what has come to be widely
recognised as one of the greatest success stories in Indian industry.

Escorts came into being with a vision. A vision that eschewed easy paths to
profitability, and sought instead for ways to make a contribution. A vision that led
two young brothers, Yudi and Hari Nanda, to branch out of their family's
prospering transport business and institute ventures that were to become the
foundations of Escorts Limited. On 17th October 1944, Escorts Agents Limited was
born at Lahore (now in Pakistan) with Mr. Yudi Nanda as Managing Director and
Mr. Hari Nanda as Chairman. It was a trendsetting marketing house driven by the
same business philosophy, which had given their family enterprise an unrivalled
reputation: customer concern. Not long afterwards, this driving ambition to go
beyond the expected led Hari Nanda to the first of his many successful business
insights - the discovery of the great business potential that lay in India's villages.
This led to the launch, in 1948, of Escorts (Agriculture and Machines) Ltd., with
Yudi Nanda as Director. Though separate business entities then, both companies
had two great strengths in common: the dynamic Nanda brothers and the unifying
force of the name they gave their companies; Escorts, literally 'escorting' their
products and services to the customer while most other businessmen were just
selling.

Tragically, Mr. Yudi Nanda died in an accident in 1952 - but his spirit remained
embedded in the foundations of the company. Mr. H P Nanda then took on the
mantle to realise the dreams which he had always seen with his brother.

Escorts (Agents) Ltd., and Escorts (Agriculture and Machines) Ltd. merged in 1953
to create a single entity -Escorts Agents Pvt Ltd. Having initially started with a
franchise for Westinghouse domestic appliances, by this time the Company had
already expanded its marketing and service operations, representing internationally
known German and American organisations such as MAN, AEG, Haniel & Leug,
Knorr Bremse, MIAG and BMA for sophisticated electrical and mechanical
engineering equipment and Minneapolis Moline and Wisconsin for agricultural
tractors, implements and engines. Escorts made a major thrust into the agricultural
arena by taking on the marketing and service franchise for Massey Ferguson
tractors in Northern India, which soon comprised 75% of MF's all-India sales - a
signal tribute to Escorts' inherent strengths. Its first industrial venture came up in
1954, in partnership with Goetzewerke of Germany for the manufacture of piston
rings and cylinder liners - followed by production of pistons in collaboration with
MAHLE, also of Germany, in 1960. The company's incorporation in its present
name, Escorts Limited, was effected on 18th January, 1960. Escorts' next major
industrial activity was the assembly of tractors in 1961 in technical cooperation with
URSUS of Poland. Subsequently this led to the manufacture of the country's first
indigenous tractors under Escorts' own brand name, which were to play a pivotal
role in the Green Revolution. This went on to lay the foundations that even today
are the Company's core strengths -relevant, world-standard technology through
strategic international alliances; a broadbased marketing and service network yet
unrivalled; powerful symbiotic relationships with suppliers and dealers; and above
all, the crusade to make a difference.
Beyond the growth of the organisation, these principles have ensured that Mr. H. P.
Nanda's contribution to the cause of industry and the consumer will endure. He
pioneered the revolutionary concept of 'interdependence' between ancillary and
large industries, institutionalising vendor development and in the process building
Faridabad and the entire belt of townships in the region. He introduced the
discipline of service going before marketing, reassuring the customer that Escorts
would stay with them, that they were here for the long run. He built lasting alliances
with an array of the world's most respected names in tractors, industrial equipment,
two-wheelers, construction equipment and telecommunications. Going further, he
created institutions devoted to value engineering and training, not only as
investments in the company's future but also as catalysts for the enhancement of
Indian industry as a whole the Escorts R&D Centre and the unique Escorts Institute
of Farm Mechanisation. His concern extended to the society in which he worked,
and he manifested it by establishing the Escorts Medical Centre at Faridabad,
Escorts Heart Institute and Research Centre at New Delhi, as well as numerous
village development programmes. And above all, he imbued the corporation with
his own pioneering, entrepreneurial spirit, instilling both a conscience and a vision
of leadership.

Escorts is testimony to the valour, vision and values of its Founder Mr. H P Nanda.
He remains the inspiration for our courage, spirit of adventure and ability to ‘Think
Big’. These qualities are his enduring legacy and have inspired and encouraged us
down the decades and will continue doing so in all our endeavors.
 INTRODUCTION

The Escorts Group, is among India's leading engineering conglomerates operating

in the high growth sectors of agri-machinery, construction & material handling
equipment, railway equipment and auto components.
Having pioneered farm mechanization in the country, Escorts has played a pivotal
role in the agricultural growth of India for over five decades. One of the leading
tractor manufacturers of the country, Escorts offers a comprehensive range of
tractors, more than 45 variants starting from 25 to 80 HP. Escort, Farmtrac and
Powertrac are the widely accepted and preferred brands of tractors from the house
of Escorts.
A leading material handling and construction equipment manufacturer, we
manufacture and market a diverse range of equipment like cranes, loaders,
vibratory rollers and forklifts. Escorts today is the world's largest Pick 'n' Carry
Hydraulic Mobile Crane manufacturer.

Escorts has been a major player in the railway equipment business in India for
nearly five decades. Our product offering includes brakes, couplers, shock
absorbers, rail fastening systems, composite brake blocks and vulcanized rubber
parts.
In the auto components segment, Escorts is a leading manufacturer of auto
suspension products including shock absorbers and telescopic front forks. Over the
years, with continuous development and improvement in manufacturing technology
and design, new reliable products have been introduced.
Throughout the evolution of Escorts, technology has always been its greatest ally for
growth. In the over six decades of our inception, Escorts has been much more than
just being one of India's largest engineering companies. It has been a harbinger of
new technology, a prime mover on the industrial front, at every stage introducing
products and technologies that helped take the country forward in key growth
areas. Over a million tractors and over 16,000 construction and material handling
equipment that have rolled out from the facilities of Escorts, complemented by a
highly satisfied customer base, are testimony to the manufacturing excellence of
Escorts. Following the globally accepted best manufacturing practices with
relentless focus on research and development, Escorts is today in the league of
premier corporate entities in India.
Technological and business collaboration with world leaders over the years, globally
competitive indigenous engineering capabilities, over 1600 sales and service outlets
and footprints in over 40 countries have been instrumental in making Escorts the
Indian multinational. At a time when the world is looking at India as an outsourcing
destination, Escorts is rightly placed to be the dependable outsourcing partner of
world's leading engineering corporations looking at outsourcing manufacture of
engines, transmissions, gears, hydraulics, implements and attachments to tractors,
and shock absorbers for heavy trailers and armored tanks.
In today's Global Market Place, Escorts is fast on the path of an internal
transformation, which will help it to be a key driver of manufacturing excellence in
the global arena. For this we are going beyond just adhering to prevailing
norms, we are setting our own standards and relentlessly pursuing them to achieve
our desired benchmarks of excellence.

MILESTONE

1948 - Pioneered farm mechanization in the country by launching Escorts

Agricultural Machines Limited, with a franchise from the U.S. based Minneapolis
Moline, for marketing tractors, implements, engines & other farm equipment.
Launch of Escorts (Agriculture and Machines) Ltd.

1949 - Franchise of Massey Ferguson tractors for northern India

1951 - Escorts established India’s first private Institute of Farm Mechanisation at

Delhi.

1953 -Escorts (Agents) Ltd. and Escorts (Agriculture and Machines) Ltd. merged to
form Escorts Agents Pvt. Ltd.

1954 - 1st industrial venture of Escorts to manufacture piston rings in collaboration

with Goetze of Germany, in an era when joint ventures of Indian firms with foreign
companies were virtually unheard of.

1958 - Started importing Massey Ferguson tractors from Yugoslavia for marketing
the same in India.

1959 - Collaboration with Mahle of Germany to manufacture pistons. Soon, Escorts

became the largest producer of piston assemblies in India.

1960 - Set up of Escorts Limited

1961- Setting up of manufacturing base at Faridabad for manufacture of tractors in

collaboration with URSUS of Poland and 50% indigenous components. Launch of
Escort brand of tractors. Collaboration with CEKOP of Poland for manufacture of
motorcycles and scooters. Escorts moves into high gear by nurturing the two
wheeler culture. The first Rajdoot motorcycle rolls off the assembly line.

1969 - Escorts Tractors Limited was born. A technical and financial joint venture
with the global giant Ford Motor Company, USA, to manufacture Ford tractors in
India. The years ahead saw Escorts grow as the largest tractor manufacturer in
India.

Escorts Institute of Farm Mechanisation (EIFM) established at Bangalore.

Escorts Employees Ancillaries Ltd. (EEAL), a unique venture in industrial

democracy comes into being.

1971 - 1st February, the first tractor FORD 3000 rolled out of the factory.

Escorts diversifies and starts manufacturing construction equipment.

1974 - Crossing national boundaries, Escorts exports for the first time. After
winning a global tender, 400 tractors were exported to Afghanistan, which was
perhaps the world's largest ever airlift of tractors.

1976 - FORD 3600, an advancement in Farm Mechanisation launched. Trial

production of in-plant manufacturing of engine parts (Block & Head).
1977 - Escorts enters the world of self-developed technology by setting up its first
independent R&D Center. Escorts Scientific Research Centre marked its beginning
at Faridabad by developing its own Engines for E-27 and E-37. Due to constant
technology absorption, indigenisation level touched 72% for FORD tractors. 2nd
plant at Bangalore for manufacturing piston assemblies was set up.

1979 - Collaboration with JCB Excavators Ltd., UK for manufacture of excavators.

1980 - Foray into healthcare, Escorts Hospital and Research Center set up in
Faridabad.

1983 - Escorts Tractors Limited (ETL) established a state-of-the-art research and

development centre to spearhead newer breakthroughs in Farm Mechanisation and
to maintain industry leadership. Line concept introduced for engine block
machining. 11,000 ton floating dry-dock Escorts I launched.

1984 - JV Escorts - Yamaha to manufacture motorcycles

1984 - Signing of agreement with the Japanese bike giant Yamaha to manufacture
motorcycles with Yamaha technology. Collaboration with Jeumont Schneider of
France to manufacture EPABX systems Collaboration with Dynapac of Sweden to
manufacture vibratory road compactors

1985 - Escorts Tractors Limited (ETL) offered its first Bonus Issue (1:1).

1988 - Escorts Heart Institute and Research Centre (EHIRC), a world class cardiac
care facility launched in New Delhi.

1989 - Joint Venture with Claas of Germany to manufacture harvester combines.

1990-91 - First Public Issue in February 1991, over-subscribed four times. Shares
listed on Delhi and Bombay Stock Exchanges.

1993 - FORD 3620 tractor launched.

1996 - Disengagement of joint venture collaboration with New Holland and launch
of FARMTRAC Tractor.

1997 - Joint Venture with Carraro of Italy for manufacturing and marketing of
transmission and axles.

Joint Venture with First Pacific Company of Hong Kong - Escotel Mobile
Communications.

1998 - POWERTRAC series of tractors launched.

MoU was signed with Long Manufacturing Company, USA for setting up a Joint
Venture in USA.

1999 - MoU for Joint Venture with a Polish Company POL-MOT was signed for
assembly, manufacturing and marketing of Farm Machinery.

2004 - Divested Escotel Mobile Telecommunications to Idea Cellular

TS16949 certification for Agri Machinery Group.

2005 – Divested Escorts Heart Institute and Research Centre (EHIRC) to Fortis
Healthcare.

2006 - Divested in Carraro India Ltd.

Set up new manufacturing facility in Rudrapur for manufacture of new range of

railway equipment
 Awards and Achievements

Quality Management History and Achievements:

 Collaborated with leading European tractor manufacturers in 1960's and
1970's.
 Thus world best practices and Quality System in manufacturing and vendor
development were already in use much before they were started by any other
Tractor Manufacturer in India.
 With increased access to global markets from the 1990's, we have adopted
current best practices in operational areas.
 1995- First Tractor company (Farmtrac Plant) in India to get ISO-9001
certification.
 1997-All other plants also got ISO-9001 certification
 1997-2000 - Adopted BPR practices in all Manufacturing plant
 2002-2003- Adoption of Oracle ERP
 2001-2004 - Implementation of TS -16949 based Quality system and
Certification
 2006 - till date - TQM principles with new and focused understanding

Benefits of ISO 9001 and TS 16949 certifications:

 To streamline and strengthen the procedures and systems of Escorts
 To have a uniform approach as a company for resolving customer related
 issues and focus on customer satisfaction
 Build a base for making improvements through BPR, New advanced tools
and techniques
 Capturing Customer Voice.
 Converting This Voice Into Products Meeting Customer Requirements Fully
With Targets On
 Quality
 Cost
 Delivery
 Other Benefits Planned.
 To have the approach of “Prevention" rather than " Reaction".
 Focused approach on " Continuous Improvement ".
 World class products through Tools And Techniques like QFD, DFMEA,
PFMEA, Control Plan, DOE, SPC and TPM.
 Vendor Reliability Improvement.

TQM Practices Being Followed

Escorts Ltd is TS-16949 Certified Company since 2004. We follow the documented
system based on requirements specified in the ISO/TS-16949 Standard. We practice
the following:
 APQP is part of our Product Introduction Process (PIP)
 FMEA -design as well as process
 SPC - machine shops
 Control Plans/SOPs
 Measurement System Analysis (MSA)
 Problem Solving Techniques
 Poka Yoke
 QFD
 Special characteristics identification
 PPAP
  TPM
 Customer Satisfaction Measurement
 Continuing Initiatives

The Agri Machinery group has set the Vision to 'GO GLOBAL'. This
Vision means:

 World class products with state of art technology

 Innovative products creating customer delight in all continents
 World class Manufactured Quality
 Flexible manufacturing systems
 Best After sales service
 Use of world class Practices, tools and techniques
 Employees contributing through innovations and benchmarking
 Reliable and Improved Vendor quality through system improvement
approach
 CORPORATE SOCIAL RESPONSIBILITY
CHARTER

At Escorts Limited, we are committed to making a positive difference in the socio

economic fabric of the rural communes where we operate in. Being in a position of
advantage, we recognize our responsibility in fostering sustainable development in
the rural communities. We strive to earn the respect and trust of our stakeholders,
be it the employees who work for us, the customers who buy our products or the
environment that we work in. In the last two decades, Escorts has made a concerted
effort in making the benefit of progress reach the backward section of the
community.
EMPLOYEES

Escorts Limited is committed to providing a safe, secure, fair and stimulating work
environment to its employees that empowers them to not only make a meaningful
contribution to the organization’s performance but also helps in personal and
professional growth of the employee.
The company has implemented systems that promote safety at workplace and have
contributed to reductions in lost time injury rates. Educative seminars are
conducted on a regular basis for workers where they are exposed to various training
and skill development programmes including Fire Fighting demonstration &
training, safety seminars etc. to equip employees to work safely. We also provide
effective rehabilitation programs for our employees. At Escorts, health awareness
drives are a regular occurrence where workers are given counseling on personal
hygiene, polio awareness, eye care and general health. We also organize health
check up camps for our employees and their families. For children of our
employees, we regularly organize career counseling sessions to help build their
future. Escorts Limited Registered Office: 11, Scindia House, Connaught Circus,
and New Delhi 110001 Phone: 91-011
COMMUNITY

As a good corporate citizen, Escorts engages in activities that contribute to the

society. The company has conducted numerous awareness generation campaigns in
the rural areas on effective agriculture and horticulture practices. The company has
given assistance to farmers by making available certified seeds, fertilizers and
pesticides for improved agricultural output, liaisoning with banks and district
agencies for the generation of bank loans and government subsidies, or educating
the farmers on preservation of food grains

Besides this, Escorts has been promoting the “Social Forestry Programme” in order
to improve the environment in and around the villages of rural Haryana, where its
factories are based. Under this programme 8690 fruit trees and saplings have been
planted over a land area of 25 acres and 19200 fruit plants have been distributed to
farmers for growing orchards till date. Escorts has been taking active part in the
“Green Haryana Campaign” and thousands of trees have been planted on the
National Highway to combat the menace of air pollution.
Escorts has also joined hands with a number of external agencies and NGOs
working in the field of community development. A complete programme on “quality
reproductive health care services”, covering 25 villages in the Faridabad District is
being run with the able support and help of “The Population Foundation of India”.
Escorts also works in collaboration with the National Association for the Blind in
the field of prevention of blindness. This programme includes activities i.e.
administering vitamin A, free screening of the school going children, distribution of
glasses and the like. Besides this, Escorts also allocates funds for other agencies,
working in the field of improving rural environment, to run income generation
programme, and upliftment of the rural poor.
 ESCORTS HEALTH, SAFETY & ENVIROMENT
POLICY

Escort management is of firm belief that creation of safe and healthy working
condition and environmental protection to the employees and associates in the factory
premises and to the general public in its vicinity is an important as other
organizational activities to achieve the greatest practical freedom from accident,
injuries and other health hazards.

They are committed to-

 Ensure compliance of all statuary requirements for maintaining safety, health
and environment standards.

 Ensure safe working practice through training and education.

 Prevent all injuries and property damage through continuous safety inspection
and audits.

 Prevent all injuries and property damage through continuous safety inspection
and audits

 Prevent all occupational disease and employee health hazards.

 Preserves and conserve the environment.

FACILITIES AVAILABLE –
DISPENSARY
Well-equipped dispensary manned by doctors & pharmacists with modern amenities
and necessary medical facilities is available for the employees in all the plants.
An employee requiring consultation/first-aid will visit the dispensary with proper
authorization from department head/PU head. History card of each employee is
available for treatment and for consultation.
The chief medical officer conducts health check-up, awareness programs on
maintaining good health, first aid and related issues for the benefit old the employees.

AMBULANCE
 The ambulance is provided for carrying ailing employees to the hospitals in
case of an emergency or an accident during duty hours.

 Ambulance can be made available for emergency use of employee’s family

members in case the patient is incapacitated and unable to go by public
transport.

SAFETY EQUIPMENTS
The management provides safety equipment for use while working on
machines as required under labour laws. These items include safety goggles,
earmuffs, gas mask, health tonic, kerodex, reinol (hand wash cream) etc.

MEDICAL EXAMINATION
The annual medical examination of workmen who are deployed on hazardous
operations is conducted at authorized hospitals through the company’s chief medical
officer as required under the laws.
OTHER
 Safety committee meeting is held once in a month. The committee constitutes
equal no. of representatives from both workmen and management.
 In Escort Limited safety week is celebrated in the month of March from 4-10
every year. On this occasion various competition like painting, slogan writing,
and quiz are held.

 Escort limited is awarded foe longest n accident period in heavy engineering

few years back.

SUGGESTION SCHEME

OBJECTIVE
 To encourage and synchronize mental an emotional involvement with physical
involvement to unleash employees creative and innovative power for
continuous improvement.

 Making employees feel that thinking is not the exclusive prerogative of a select
group in the management cadre & ideas are nobody property. They belong to
whoever conceives & express them.

 Making employees realize that they are not merely employees to churn out
fixed output but from an integral part of the organization and the organization
firmly believes in their total participation for progress.

 To accept, recognize and reward their creative and innovative contribution.

OPERATING STRUCTURE
Chairperson – Suggestion committee (plant wise and R&D)
Members – Suggestion committee (plant wise and R&D)
Plant/R&D Coordinator
PU Coordinator
Coordinator (Dept./cell/section wise)
AMG Coordinator (Central Coordinator)

WORKING SYSTEM OF THE SCHEME

 The suggestion scheme will be managed by coordinators in their respective

PU/Departments for all day-to-day activities. They will receive suggestion
from the suggestions of their respective area and organize disposition as per
disposition process.

 PU Head/Dep’t will appoint the PU Coordinator.

 Head in consultation with plant coordinator/AMG Coordinator with a view

that each module/Dept. has at least one coordinator and not more that 50
employees are represented by him in the suggestion scheme.

 The coordination among functional coordinators, suggestion committee

member and chairs for various activities to successfully manage and improve
suggestion scheme will be done by the central coordinator of the suggestion
scheme.
 ELIGIBILITY CRITERIA
All suggestion, which lead to one of the following, would be acceptable for further
evaluation:
 Cost saving
 Quality improvement
 Productivity improvement
 Scrap and rework reduction/elimination
 Improvement in product design
 Reduction in machine down time
 Saving energy
 Better safety
 Improvement in house keeping
 Wastage reduction/elimination
 Rationalization /simplification
 Sales improvement
 Ease of serviceability

SUGGESTION DISPOSITION PROCESS

1. Receipt of suggestion.
2. Acknowledgement to suggestion through duplicate copy of suggestion form
and issuance of participation gift after confirming the eligibility criteria and
fair chance to acceptance and implementation.
3. Recording in computer.
4. Study for feasibility.
5. Accept. If idea is under eligibility criteria, Reject, if not.
6. Implement with the involvement and help of suggestion
7. Calculation of awards as per point rating system and seek concurrence from
approving authority.
8. Forward the details of award to AMG coordinator.
9. Distribution of suggestion award.
1. I am satisfied and totally concerned with the Production procedure
laid by the top management.

STRONGLY DISAGREE

5% 12% DISAGREE
35% 7%
NEITHER AGREE NOR
DISAGREE
AGREE
41%
STRONGLY AGREE

Interpretation: About 76% of the respondents showed their satisfaction about the
way the policies have been laid by the Production Department.

It is a good sign for an organisation like Escorts where number of people working is
very large.

The case of worry for the company is that around 5% of the respondents have
strongly disagreed and 7% neither agreed nor disagreed which indicates that these
respondents are either very dissatisfied or not properly concerned about the policies
2. Communications with the top management are channelised properly
with the rest of the organization.

STRONGLY
DISAGREE
15% 15% DISAGREE

NEITHER AGREE NOR

24% DISAGREE
AGREE
44% 2%
STRONGLY AGREE

Interpretation: The response says that about 60% of the people agree with the
channels of communication as laid by the Escorts

Where as nearly 40% have disagreed which highlights employees are dissatisfied due
to Escorts being over staff.
3. I have right level of autonomy and have satisfactory empowerment.

STRONGLY
DISAGREE
5% 8% 2% DISAGREE
38%
NEITHER AGREE NOR
DISAGREE
AGREE
47%

STRONGLY AGREE

Interpretation: Almost 85% Employees questioned have shown good response.

It indicates Policies succeeds in delegating authority and responsibility to very good
extent.
4. The Production department has successfully maintained ethics and
values in the organization.

STRONGLY
DISAGREE
6%
3% DISAGREE
3%
43%
NEITHER AGREE
NOR DISAGREE
45% AGREE

STRONGLY AGREE

Interpretation: The analysis again indicates the success of Production Department

in its role in the organisation. The Ethics and Values to a very good extent have been
maintained indicates that Organisation works in harmony and believes in spreading
harmony.

Nearly 90% of the respondents agreed.

A very good sign for any organisation where its employees follow ethics and values
and also feel the presence of it in the organisation
5. I believe that Escorts is professionally managed company.

STRONGLY
DISAGREE
4%
4% DISAGREE
40% 7%
NEITHER AGREE
NOR DISAGREE

45% AGREE

STRONGLY AGREE

Interpretation: 85% of the respondents have again respected the organisation and
taking its side have responded positively to it.

It clearly indicates that to a very good extent Escorts employees show due respect to
the organisations.
6. I am satisfied with the training programmes conducted for employees
in the organization.

STRONGLY
10% DISAGREE
18%
DISAGREE
20%
NEITHER AGREE
NOR DISAGREE
6% AGREE

46%
STRONGLY AGREE

Interpretation: The data represents around the employees are fairly discontented
with the Training Programmes held for employees in Escorts.There is a 70% negative
response towards training and development programmes.

It indicates that Escorts in the present has diverted its concentration from proper
utilisation of resources to employees’ welfare from companies welfare.
7. Escorts succeeds in providing job satisfaction to the workmen.

STRONGLY
5% DISAGREE
15% DISAGREE
35%
3% NEITHER AGREE
NOR DISAGREE
AGREE

42% STRONGLY AGREE

Interpretation: The data represents that employees have fair good response of job
granted to them with appropriate delegated authority and responsibility.

77% positive response against the 20% dissatisfied ones is enough to prove the above
fact.
8. Suggestion scheme maintained by the Escorts are encouraging.

STRONGLY
DISAGREE
4% DISAGREE
20% 10%
2%
NEITHER AGREE
NOR DISAGREE
AGREE
64%
STRONGLY AGREE

Interpretation: 84% of the responded have proved that Escorts has been well taking
care of Welfare for employees.

The study about the HR policy relating to facilities provided has been visibly proved
through the data represented.
9. Escorts salaries are on par with those of comparable companies.

STRONGLY
DISAGREE
14% DISAGREE
15%

20% NEITHER AGREE

NOR DISAGREE
41% AGREE
10%

STRONGLY AGREE

Interpretation: The Interpretation gives a mixed response about the salaries given to
the employees in comparison to the ones given in other companies.

Only 56% of the people feel the salaries are paid good enough that i.e. only half of
the respondents.
10.Company has always takes corrective disciplinary action towards
every misconduct held by

STRONGLY
DISAGREE
12% DISAGREE
17%

NEITHER AGREE
30% NOR DISAGREE
39% AGREE
2%

STRONGLY AGREE

Interpretation: The response towards the disciplinary action towards misconduct

has been in the 50:50 Ratio.

The worry for the organisation is that large numbers of respondent’s i.e.44% do not
believe in the discipline procedure of the organisation as maintained till now.
The possible reason perceived does the large no of employees in Escorts as well as
large no of workers constitute the workforce.

Until a strict procedure is maintained it is very difficult to take action towards any
misconduct in organisation such as Escorts
11.Escorts strive to the strongest and the most respected engineering
company of the country as per its mission.

STRONGLY
DISAGREE
8% 10% DISAGREE

NEITHER AGREE
36% NOR DISAGREE
44% AGREE
2%
STRONGLY AGREE

Interpretation: The above data represents a 80% positive response for the
Company’s mission been regarded as successful till now.

The data has again proved that employees of Escorts do not alone believe in taking
alone, the company’s image has again been taken care for
12. Escorts management has kept its belief of creating safe and healthy
working environmental protection to the employees and associates in the
factory premises.

STRONGLY
DISAGREE
5% 16% DISAGREE
22%
0% NEITHER AGREE
NOR DISAGREE
AGREE
57%
STRONGLY AGREE

Interpretation: The data represented above proves the interpretation about Escorts
that it does strongly believe in Employees satisfaction and takes proper care of their
welfare.

Nearly 80% of the responded have highlighted this through their response.
13.Overall, I am happier at my company than I was a year ago.

STRONGLY
DISAGREE
1% DISAGREE
24% 20%
5% NEITHER AGREE
NOR DISAGREE
AGREE
50%
STRONGLY AGREE

Interpretation: For any company with around such great manpower strength having
nearly 3/4th of the respondents assuring faith in the management system of the
company is a god sign for a further bright future of such organisation.
 INTERPRETATION

The interpretation of the data represented from the research conducted

can be analysed as: -
1. The company strongly believes in employees welfare and taking sheer
care of their rights and satisfaction in the workplace and the work as such
given to them.
2. Company’s Production policy, autonomy level given to the employees,
welfare policy, correspondingly gives job satisfaction to the employees
3. The respondents have shown due respect to company’s image and have
felt the presence of its values, believed in its mission to be strongest and
the most respected engineering company of the country and accepted it as
a professionally managed company with a fair good response that makes
every one believe in it.
4. The company in the present has been diverting from taking care of its
Production policy, cost incurred & raw material used and laying a proper
channel of communication for the corresponding manpower that it has.
Overall, Escorts can be interpreted having Sound production policies and a satisfied staff
ensuring enough support to the organisation to be one of the most successful engineering
company of the nation.
 LIMITATIONS

 Samples have been taken from only four departments, as it was difficult to show the
training need identification of the entire department.

 The duration was too short to complete the project with in four weeks.

 Data taken from secondary sources, so it is not fully reliable.

 During the training in the organization I faced some problems like every person was
very busy so they could not give me proper time.

 Due to V. R. S problems we could not take the training properly in the

organization.

 Some respondent did not provide accurate information.

 Lack of cooperation the respondents.

 Monetary Limitations.
 CONCLUSION

Production is the one of the most important part of any organization this where the
actual working of the organization takes place it is very helpful for or economy also
as it is the production of goods and services that helps in GDP growth rather than
trading so production is very important for any organization and escorts has been
doing a great job at it.

At last it can thus be concluded that:

1. Production system is used in the organization to ensure proper production.
2. Every member is aware about the Production process and system.
3. Some opinion problems are face by the superior and subordinate at the time of
Production.
4. Every subordinate perform there work with a great zeal because of motivation
they get by production at higher level.
5. New techniques of Production are very effective in building companies goodwill.
6. Production if followed by Quality check & Proper service helps in enhancing the
effectiveness.
 RECOMMEDATIONS
The suggestions after the survey are:

 The production process should be modified a bit to ensure full efficiency of the
organization is achieved.

 After the actual production, the supervisor should personally check the quality
of each product.

 Everyone should feel free to express their opinion openly without any
hesitation.

 The employee in the organization should be made aware of the latest technology
of the Production.

 Proper training should be provided to the managers after discussing the

weakness of the manager.

 Proper cost analysis should be done before actual production

 HRBOOKS

 C.B Gupta, 1996, Principles and Practice of Management, National,

New Delhi.

 Robbins, 2002, Operations Management, Himalaya Publication House, Gurgaon.

 Sharma, M.C.1992, Question Bank in Business Studies, Sultan Chand & Sons,
New Delhi.

 Mishra M.M, Operations Management, 2006-07, Anurag Jain Publication, New

Delhi.
 Chandan T.S.2001, Organization Behavior, Vikas Publication, New Delhi.

WEBSITES

 www.hrworld.com
 www.escorts.com
 www.google.com
 QUESTIONAIRE FOR ESCORTS

Instructions
 The questionnaire has been designed to assure full anonymity.

 Please don’t write your name anywhere in the questionnaire

 Respond to all statements.

 Please tick the box, which is most suitable to your belief and experience.

 There is no right and wrong answer the study will have its full benefit only if your
responses are straight forward and your own.

 Your responses to each of these statements will be as to whether you.

SD -If you are ‘STRONGLY DISAGREE’ with the statement

D -If you ‘DISAGREE’ with the statement
NAND -If you ‘NEITHER AGREE NOR DISAGREE’
A -If you ‘AGREE’ with the statement
SA -If you ‘STRONGLY AGREE’ with the statement
 QUESTIONS

1. I am satisfied with the HR & IR policies laid by the top management.

2. Communications with the top management are channalised properly

with the rest of the organization.

3. I have right level of autonomy and have satisfactory empowerment.

4. The HR department has successfully maintained ethics and values

in the organization.

5. I believe that Escorts is professionally managed company.

PLEASE NOTE:
SD= Strongly Disagree; D= Disagree; A=Agree; SA=Strongly Agree;
NAND=Neither Agree Nor Disagree
 6. I am satisfied with the way the performance appraisal is conducted.

7. I am satisfied with the training programmes conducted for employees in

the organization.

8. Escorts succeeds in providing job satisfaction to the workmen.

9. The recruitment and selection policy of both internally and externally has
been properly controlled.

10. Suggestion scheme maintained by the Escorts are encouraging.

11. Escorts salaries are on par with those of comparable companies.

PLEASE NOTE:
SD= Strongly Disagree; D= Disagree; A=Agree; SA=Strongly Agree;
NAND=Neither Agree Nor Disagree
12. Company has always takes corrective disciplinary action towards every
misconduct held by the workmen.

13. Escorts strives to the strongest and the most respected engineering
company of the country as per its mission.

14. Escorts management has kept its belief of creating safe and healthy
working environmental protection to the employees and associates in the
factory premises.

15. Overall, I am happier at my company than I was a year ago.

PLEASE NOTE:
SD= Strongly Disagree; D= Disagree; A=Agree; SA=Strongly Agree;
NAND=Neither Agree Nor Disagree
As an employee I would like to do the following to make Escorts a world-class
organization.

NB: Please use additional sheets if needed and staple them to your
questionnaire.