os report

Organisational Study at MRF

CHAPTER- 1

Introduction

As a part of two year MBA program at MCMAT Perumbavoor, at the end of 2nd

semester, we had to carry on a project in an organization in order to understand the

organization structure and their functions. This was a great opportunity to get the

first hand information and understand the functioning of the various departments.

I did my Organization Study at MRF LTD, Kottayam. It was a great learning

experience as it is quite necessary for all the management students.

Need for the study

The main purpose of doing the organization study was to understand various

departments of the organization and study their basic functions, purpose,

achievements, competitors and the mission and vision of the company and their

progress towards that .

All general information we get in course is all theoretical knowledge, on which we

entirely cannot depend on. It is very important to observe the actual working and

overall structure of an organization. The actual professionalism can be studied only

through experience.

The study focuses on the overall structure of the organization. In this study, there

was an analysis of the overall functioning of the firm and also the financial

performance of the enterprise. Also make an attempt to perform the SWOT analysis

of the firm.

1 Marthoma College of Management and Technology


Objectives of the Study

The main objectives of the study are:

i. To familiarize with a reputed industry, business house or service organization

ii. To get acquainted with the different departments in an organization and their

functioning.

iii. To enable to understand how the key business process are carried out in

organizations.

iv. To understand how information is used in organization for decision making

at various levels and

v. To relate theory with practice.

Research Methodology

Primary data:

- Primary data were collected from discussions with the managerial head of the

various departments.

Secondary data:

- Secondary data were obtained from the annual report, from the company

website and other concerned books.

Limitations of the study

Following limitations were experienced during the Organisation Study:

- Finds it difficult to meet concerned personnel in various departments.

- Certain areas were restricted so detailed study was not possible

- Auditing process in the organisation was on in the same period that also

created some difficulty.



CHAPTER 1

2.1) INDUSTRIAL PROFILE

Tyres off take by different automobile segments directly reflect the pace of

economic activities in a country. The performance of commercial vehicle tyres is

directly linked to the country’s economic development. India, being the world’s

second most populous and seventh largest country in area has been orchestrating

tremendous GDP growth for the last few years which transform into the dynamic

developments of various industries, including automobile and tyres.

According to a new research report “Indian Tyre Industry Analysis”, the financial

crisis has had moderate negative effect on the commercial vehicle market which

creates strong demand for tyres in the country. The demand for commercial vehicles

has recorded sluggish growth due to the weak performance of infrastructure,

construction, manufacturing and other sectors. However, the commercial vehicle

segment regained its growth in FY 2010 both in terms of production and sales. The

main reason for revival of growth in the commercial vehicle segment is recuperating

demand from almost all prominent sectors. It was reflected in increasing tyres off

take during FY 2010 and tyre production grew around 18.3% over FY 2009. India

still lags far behind other major economies when compared in terms of

radicalisation. For instance, the radicalisation level in Western Europe, North

America, and Central Europe is around 100%, 96%, 95% respectively. Even the

world average radicalisation (65%) is well ahead of Indian standards at 9.1%.

However, the penetration of radial tyres is increasing fast in the country.

Approximately 98% of passenger cars tyres now belong to radial category. Besides,

the radial tyre penetration is surging fast in the commercial vehicle and truck & bus

segment. The report provides an extensive research and objective analysis of the

Indian tyre industry and its different segments. The report gives authentic statistics

and information of market structure, tyre production, and demand by segments,

exports, and imports trends till FY 2014. The market potential estimations and

forecasts have also been covered for radial tyre industry and tubeless tyre segments

to empower clients with cutting edge market intelligence. The report also contains

information about the regulatory environment and the leading industry players with



focus on their business description and recent developments. Since the performance

of tyre industry depends on the availability and prices of raw material, the report

helps clients to understand the impact of rubber prices fluctuation on the tyre

industry.

Structure of Indian Tyre Industry

Background

The origin of the Indian Tyre Industry dates back to 1926 when Dunlop Rubber

Limited set up the first tyre company in West Bengal. MRF followed suit in 1946.

Since then, the Indian tyre industry has grown rapidly.

Transportation industry and tyre industry go hand in hand as the two are

interdependent. Transportation industry has experienced 10% growth rate year after

year with an absolute level of 870 billion ton freight. With an extensive road

network of 3.2 million km, road accounts for over 85% of all freight movement in

India.

Market Characteristics

1) Demand

The demand for tyres can be classified in terms of:

Type

- Bus and Truck;

- Scooter; Motorcycle;

- Passenger Car;

- Tractor

Market:

- OEM;

- Replacement;

- Export

Tyre Demand by Type

The Indian tyre industry produces the complete range of tyres required by the Indian

automotive industry, except for aero tyres and some specialised tyres. Domestic

manufacturers produce tyres for trucks, buses, passenger cars, jeeps, light trucks,



tractors (front, rear and trailer), animal drawn vehicles, scooters, motorcycles,

mopeds, bicycles and off-the-road vehicles and special defence vehicles.

Truck and Bus Tyres: Every truck/bus manufactured generates a demand for seven

tyres (six regular and one spare) as against three in the case of two-wheelers and five

for passenger cars. In addition, the price of a truck tyre is significantly higher than

that of a passenger car tyre or a motorcycle tyre. Thus the demand multiple

emanating from the commercial vehicle segment is highest in value terms.

Passenger Car Tyres:

Motorcycle Tyres:

Scooter Tyre:

Tyre Demand by Markets

Vehicle Manufacturers or OEMs: The demand from the OEM segment is a

derived one and directly correlated to the level of automotive production.

Replacement Market: The demand in the replacement market depends on the

vehicle population, the level of economic activity, life of the products transported,

kilometre per vehicle, the price of the tyres and the quality of the existing road

infrastructure. Additionally, the replacement market, which offers better margins, is

extremely competitive. The large size of the replacement in turn is determined by the

interplay of various factors as discussed below:

- The replacement demand may be lower because of longer replacement

intervals and lower business mileage if the economic activity slows down.

- Replacement demand in India is higher because of a low vehicle scraped rate.

- Poor road conditions by lowering the life of tyres have a positive impact on

replacement demand.

- Stricter enforcement of the MV Act, which seeks to prevent overloading of

vehicles, will result in an increase in the life of tyres and thus impact replacement



demand negatively.

- Applying a new tread or "re-treading" can extend the life of the tyre at a

significantly lower cost, thereby lowering replacement demand. In India, re-treading

finds greater acceptance in the commercial segment.

- Introduction of tubeless tyres in the passenger car segment is also likely to

affect replacement demand adversely.

- Introduction of eco-friendly radial tyres such as hyper-bonding silica

technology in the passenger car segment may affect replacement demand adversely.

Exports: Indian companies have currently entered into sourcing agreements (for

tyres) with neighbouring countries. For instance, Ceat and J K Tyres have sourcing

agreements with tyre producers in Sri Lanka and China. This is likely to have a

positive impact on tyre exports from India

Outlook

The level of economic activity, performance of domestic automotive industry, and

the faring of the transport sector directly influence the performance of the tyre

industry in India. With the replacement segment dominating the overall tyre demand

in India, the industry remains inherently vulnerable to economic cycles. While

radicalisation has become the norm in the passenger car segment, in the bus and

truck tyre segment, its acceptance is still limited. Bus and truck radicalisation could

emerge in the long term as the quality of roads improves and the restrictions on

overloading are better enforced. The practice of re-treading, which is gaining

increasing acceptance, could pose a challenge to replacement demand in the medium

term. The ability of the re-treading sector to capture potential replacement demand

would depend on the awareness among customers (of the benefits of retreading) and

also the quality of retreading done. Given the low levels of penetration of two-

wheelers and passenger cars in the country, OEM demand is likely to increase,

which in turn would push up replacement demand with a lag.

The prospects of tyre exports from India appear healthy, following efforts by Indian

companies to increasingly enter into outsourcing agreements with tyre producers in

Southeast Asia, Eastern Europe and Latin America. Overall, tyre manufacturers are

likely to tap the export market in an effort to boost sales. The increasing exports of



bus and truck tyres (crossly variety) from India to developing countries is because of

the fact that developing countries are unable to source them from developed

countries as these are no more produced there. Tyre imports are unlikely to pose a

threat to the domestic industry, given that domestic prices are lower than

international tyre prices. In the domestic market, tyre manufacturers are expected to

increasingly focus on expanding their dealership networks & explore possibilities of

tie-ups among themselves to penetrate the growing customer base. They are also

likely to pursue innovative measures (such as "dial-a-tyre service and road shows) to

improve customer awareness.

The consolidation of the Indian tyre industry is likely to continue in the coming

years through mergers among existing players. The industry is likely to expand

through a combination of organic and inorganic growth. While organic growth

would come from raising efficiency levels, inorganic growth would be achieved

through alliances and M&As.

Major Market Players and their market shares

1) MRF - 22%

2) Apollo - 21%

3) JK - 18%

4) Ceat - 13%

5) Birla - 10%

6) Goodyear - 7%

7) Bridgestone - 5%

8) others - 4%

2.2 COMPANY PROFILE



MRF Limited

Madras Rubber Factory, popularly known as MRF, is a major tyre manufacturing

company located in Chennai, Tamil Nadu India. MRF is mainly involved in making

vehicle tyres. It is India's largest tyre manufacturing company, and among the dozen

largest worldwide. MRF holds 15th position in the global market. It exports to more

than 65 countries. 40% of the products are being exported. A leader in the category

MRF holds the No.1 position for the last 21 years. Established as toy-balloon

manufacturing company in 1946 by KM Mammen Mappillai, MRF quickly emerged

as the leading maker of tread rubber. Since then, the company hasn't looked back.

The fact that it is the first tyre company in India to reach a turnover of 5000 Crores

is testament to its dominance of the industry. The company's penchant for quality

has earned it the distinguished Q1 certification from Ford - an achievement that


Founded 1946

Founder(s)K.M.Mammen

Mappillai

Headquarte

rsChennai, India

Key people Arun Mammen (MD)

ProductsTyres, Toys, Sports

Goods

RevenueINR 8,080 Crores

(2010)

Operating

income

INR 354 Crores

(2010)

Net income INR 543 Crores(2010)

SubsidiariesFunskool, MRF Pace

Foundation, MRF

Racing

Websitehttp://

www.mrftyres.com


qualifies MRF to supply tyres to any of the Ford plants worldwide. This has also

translated in the company winning the prestigious JD Power award five times.

BOARD OF DIRECTORS

K.M.Mammen (Chairman and Managing Director)

Arun Mammen (Managing Director)

K.M. Philip (Whole Time Director)

Dr. K.C. Mammen

Asok Jacob

V. Sridar

Vijay R Kirloskar

N. Kumar

Ranjit I Jesudasen

S. S Vaidya

Dr. Salim Joseph Thomas

HISTORY

1946: A young entrepreneur, K.M.Mammen Mappillai, opened a small toy balloon

manufacturing unit in a shed at Tiruvottiyur, Madras (now Chennai).

1949: Although the factory was just a small shed without any machines, a variety of

products, ranging from balloons and latex-cast squeaking toys to industrial gloves

and contraceptives, were produced. During this time, MRF established its first office

at 334, Thambu Chetty Street, Madras (now Chennai), Tamil Nadu, India.



1952: MRF ventured into the manufacture of tread rubber. And with that, the first

machine, a rubber mill, was installed at the factory. This step into tread-rubber

manufacture was later to catapult MRF into a league that few had imagined possible.

1955: MRF soon became the only Indian-owned unit to manufacture the superior

extruded, non-blooming and cushion-backed tread-rubber, enabling it to compete

with the MNC's operating in India at that time.

1956: The quality of the product manufactured was of such a high standard that by

the close of 1956, MRF had become the market leader with a 50% share of the tread-

rubber market in India. So effective was MRF's hold on the market, that the large

multinationals had no other option but to withdraw from the tread rubber business in

India.

1960: The Company was incorporated as a private limited company on 5 November.

The Company Manufacture automobile, aircraft, cycle tyres and tubes in

collaboration with the Mansfield Tire & Rubber Co., Mansfield, Ohio, U.S.A. The

tyres are sold under the trade name Mansfield Tyres (MRF). The Company also

produces other industrial products made of rubber like conveyor belt, hoses etc. It

took over the entire business of the Madras Rubber Factory as a going concern as

from 16 November, for a consideration of Rs.25 Lakh.

1961: The Madras Rubber Factory Private Limited was converted into a public

company on 1 April, and additional capital was issued in order to start the

manufacture of automobile tyres and tubes in collaboration with the Mansfield Tire

& Rubber Co., Mansfield, Ohio, U.S.A. The Company was given permission to

export tyres having Mansfield trade mark to all world markets except U.S.A. and

Canada. : 2, 49,650 shares allotted without payment in cash. 350 shares subscribed

for by the signatories to the Memorandum of Association. 2, 50,000 shares reserved

and allotted directors. 5, 00,000 shares issued to public in April 1961. The balance 2,

50,000 shares allotted to collaborators as payment for machinery.

1962: The main plant for production of tyres and tubes were commissioned on 4

December.



1963: Nylon Hot-Stretch Unit of the latest design was commissioned in November.

6, 25,000 Right Equity shares offered at par in the proportion 1:2.

1964: With the commissioning of the main plant in 1964, MRF also made progress

in the export of tyres. An overseas office at Beirut (Lebanon) was established to

develop the export market, and it was amongst India’s very first efforts. This year

also marked the birth of the now famous ‘MRF Muscleman’.

1967: MRF became the first Indian company to export tyres to USA - the very

birthplace of tyre technology.

1970: On March 5, 1970 bonus equity shares (62,500) issued in the proportion 3:10.

The Company set up 2nd manufacturing unit at Kottayam.

1971: The Company set up 3rd manufacturing unit at Goa

.

1972: The Company set up 4th manufacturing unit at Arkonam.

MRF becomes India’s largest tyre manufacturing company.

1973: MRF scored a major breakthrough by being among the very first in India to

manufacture and market Nylon tyres.

1975: During September, 12, 1975, bonus shares (18,714 no’s) issued in proportion

1:2. (Only 12, 18,689 shares were taken up).

1978: The Company finalised technical know-how collaboration with B.F. Goodrich

Co., U.S.A., which became fully operative in early 1980-81.This agreement was

revalidated for further five years.

1979: The Mansfield Tire & Rubber Co., U.S.A. offered for sale out of its holding 3,

74,250 No. of Equity shares of Rs 10 each of the Company at a premium of Rs 4

each as follows: 3,63,786 shares as rights to the existing shareholders in the

proportion 1:8 and 10,464 shares to the employees of the Company.

MRF's turnover crossed INR one billion.



1980: The Company crossed several milestones in its history. It went into technical

collaboration with BF Goodrich Tire Co., USA in the year. The name of the

Company, Madras Rubber Factory Ltd. was changed to MRF Ltd in the year.

1983: The Company finalised a technical collaboration agreement with M/s.

Marangoni TRS SPA, Italy for the supply of know-how for the manufacture pre-

cured tread rubber for retreading industry.

1984: Sales crossed INR two billion. MRF tyres were the first tyres selected for

fitment onto the Maruti Suzuki 800 - India's first small, modern car.

1985: A letter of intent was obtained for the manufacture of conveyor belts and

hoses in collaboration with Industrial Pirelli SPA,Italy. Plans were also on hand to

go in for a joint venture with the aero tyre division of B.F. Goodrich & Co., for

retreading and subsequently for manufacturing aircraft tyres.

1986: The Company issued 15% non-convertible debentures of Rs 100 each (II

Series) for Rs.8 Crore as rights to the existing shareholders to raise finances for

modernisation of the Company.

1987: MRTP clearance was also obtained for setting up a new plant at Tada in

Andhra Pradesh for manufacture of 1.5 million numbers of tyres and tubes per

annum.The Company entered into a collaboration agreement with Vapo cure of

Australia to manufacture polyurethane paint formulations that can be rapidly cured

at room temperature and would also help in the manufacture of shatter-proof glass.

The plant with an installed capacity of 10,000 tonnes per annum was being set up at

Gummidipoondi in Tamil Nadu. Funskool (India), Ltd. and `Crystal Investment and

Finance Co. Ltd.' became subsidiaries of the Company. Funskool (India), Ltd. was

promoted in collaboration with Hasbro International, U.S.A., and the World's largest

toy makers. MRF crossed the INR three billion mark.

1988: The MRF Pace Foundation was set up, with international pace bowler, Dennis

Lillee as its Director. Not long thereafter, pace bowlers trained at the Foundation

were selected for the Indian Cricket Team.



1989: The Company was identified as `Star Exporter', a status that enables the

company to get priority treatment in several areas concerned with Customs, RBI,

etc. Aero tyre division of B.F. Goodrich Co., USA was taken over by Michelin Cie

of France. Government approved the technical collaboration with Uniroyal Goodrich

Tire Co., U.S.A., and a subsidiary of Michelin Cie., France, for imparting latest

technology for bias ply/radial aircraft tyres for a period of 5 years.

1990: The Aruna Leathers & Exports Ltd. was amalgamated with the Company. The

Company introduced `Vapocurea' colours in the market. The Company privately

placed with SBI Mutual Fund.

1991: The Company promoted a new Company viz. MRF International, Ltd., in

view of the tremendous growth potential in the export market.

1992: The Company has formed a new Company, viz., MRF INTERNATIONAL

LIMITED and the Company has received the certificate of commencement of

business.

1993: K.M.Mammen Mappillai was awarded the Padma Shri Award of National

Recognition for his contribution to industry - the only industrialist from South India

to be accorded this honour. MRF also became the first tyre company in India to

cross the INR 10 billion mark. In addition, the company was voted by the Far

Eastern Economic Review, as one of the ten leading Corporate Groups in India and a

Leader in Asia and by readers of the A & M magazine, as one of India's most

admired Marketing Companies.

1995: The Company has received the Top Export Award for the year from All India

Rubber Industries Association. The company's turnover crossed INR 15 billion.

1996: The Company has received an award from CAPEXIL - Certificate of Merit

based on the export performance for the year. The Far Eastern Economic Review

Award was presented to MRF for the fourth year in succession in recognition of

excellence.



1997: MRF Ltd has been assigned a credit rating of `PR1+' (superior) for its

proposed Rs.100 crore commercial paper (CP) programme by Credit Analysis and

Research Ltd (CARE). MRF is setting up a new plant in Pondicherry for the

production of radial tyres. The company set up the Arakkonam plant in Chennai to

produce bicycle tyres and tubes. MRF began manufacturing tyres and tubes in

technical collaboration with Mansfield Tire and Rubber Company, USA. MRF has

launched Nylogrip Zapper, a high performance tyre for new generation bikes. The

company tied up with Uniroyal Goodrich Tire Co. of USA, a subsidiary of the

French Tyre giant Michelin, which held 9.8 percent stake in the company.

1998: MRF Tyres has signed an OEM (original equipment manufacturer) alliance

with Siel Honda Motors and Hindustan Motors. MRF has launched a market

sampling operation for the MRF Zigma.

1999: MRF Ltd has decided to set up more such clinics in Northern and Western

cities. The Company has entered into agreements with the Depositories viz.,

National Securities Depository Ltd. [NSDL] & Central Depository Services (India)

Ltd. AIRIA Highest Export Award was given in recognition of our outstanding

export performance in respect of Auto Tyres & Tubes during the year.

2000: The Company has set up shop in Dubai to target markets in the UAE as part

of its export thrust. MRF has launched a steel-belted premium radial tyre variant

called `MRF ZVTS'.

2002: MRF was ranked highest in customer satisfaction along with multinational

Bridgestone in a study conducted by JD Power Asia pacific. MRF Tyres Ltd sees

slump in commercial vehicle tyre market and passenger car growth has also

declined.MRF Ltd has obtained the 'Outstanding Corporate Sports Initiative' award

from the Federation of Indian Chamber of Commerce and Industry.

2003: MRF and Bridgestone are ranked highest in a tie for the second year in a row

in customer satisfaction with original tries according to JD Power Asia Pacific. Shri

K.M. Mammen Mappillai, Chairman and Managing Director expired on March 2nd.

Mr. Arun Mammen took charge as Managing Director of the Company w.e.f April

1, 2004



2004: MRF Ltd. has informed that Mr. Ravi Mannath has been appointed as

Additional Company Secretary of the Company w.e.f. January 5, 2004.

MRF received the highest rankings in the study in four of the five factors

determining overall satisfaction with tyres appearance, durability, traction and

handling. MRF Tyres is the biggest consumer of natural rubber in India during 2002-

03.Ties up with Maruti Udyog to boost motorsports in India

2007: MRF Ltd launches premium truck tyre Super Lug 50-FS.

2010: The Company inaugurates its 7th unit at Medak.

2011: The company inaugurates its 8th unit at Trichi. The launched India’s Eco-

Friendly Car Tyre- MRF ZSLK

SPORTS

MRF has been involved in the development of cricket through its sponsorship of

many cricketers and MRF Pace Foundation. At one point of time, MRF was the bat

sponsor of world-class batsmen including Brian Lara, Sachin Tendulkar, and former

Australian captain Steve Waugh.After Waugh's and Lara's retirement from

international cricket, on 4 September 2009, MRF's contract with Sachin Tendulkar

too expired. Sachin now uses Adidas bats, and MRF are currently sponsoring

Gautam Gambhir and Rohit Sharma two other members of the Indian cricket team.

At IPL 2010, MRF got the charge of the moored balloon floating above the cricket

grounds. It contained a high-definition camera recording live actions of the cricket

match.

Sponsorships

India - Gautam Gambhir (2011) and Rohit Sharma

Bangladesh – Ashrafull

West Indies - Brian Lara

Australia - Steve Waugh



2.3) PRODUCT PROFILE

Products and services of MRF

Products:

Following are the various products of MRF:

1) TYRES

1.1) Passenger Cars

- Radial tyre pattern

- Bias Ply tyre pattern

1.2) Two Wheelers

- Motor Bikes Front

- Motor Bikes Rear

- Scooters Front

- Scooters Rear

1.3) OTR

1.4) Trucks and Buses

1.5) Farm Services

1.6) LCV

- Radial

- Basis

1.7) Tubes and Flaps

2) CONVEYOR BELTS: MRF manufactures its MUSCLEFLEX brand of

Conveyor Belting at one of the most advanced, 'State of the Art', Facilities in

India. Incorporating the latest manufacturing techniques in processes beginning

with Mixing, Calendaring and the like, to manufacturing of the Finished

Products, all of which is In-House, MUSCLEFLEX-Conveyor Belting has

gained rapid acceptance in markets worldwide. A comprehensive range of Cover

Grades covering a wide variety of applications is manufactured. These Cover

grades conform to the most Stringent International Standards, across the range.

MRF Conveyor Belting Division is ISO 9001 certified. Belting is manufactured



under a detailed Quality Assurance Plan involving meticulous raw material

testing, in-process controls and stringent finished product testing. MRF's

comprehensive range is used for several applications including Mining, Quarries,

Ports, Thermal Power Plants, Cement Plants, Steel Plants, Fertilizer Plants,

Paper Manufacturing, Fertilizer Industry etc. Exports currently cover 15

countries across the world and growing rapidly

3) PRE TREADS

MRF PRETREADS is the most advanced pre cured retreading system in India. MRF

forayed into retreading as far back as 1970. Today, MRF has perfected the art of re

cured retreading with its extensive knowledge in tyres and rubber. In the MRF

PRETREADS system, the tread rubber is pre cured from MRF's factory in a

carefully controlled environment, thereby ensuring world-class quality. Today, MRF

PRETREADS has emerged as the Mileage leader in pre cured retreading and also

has the specialized expertise required for retreading Radial Tyres of Truck, Bus,

LCV and Passenger vehicle.

Advantages of MRF Pre tread

Following are the major advantages of MRF Pre tread:

1) Greater tyre mileage

2) Better road grip

3) Well researched tread pattern through years of innovation and testing.

4) Proven rubber technology

5) Range of patterns to suit various applications.

6) Low operating costs.

4) PAINTS AND COATS

Wall finishes

Glass finishes

Auto Coat

Plastic Finishes

Metal Finishes

Colour Dome:



Vapo cure

SERVICES

Following are the services being provided by MRF:

MRF offers a whole host of services to its customers, ranging from helping them

pick the tyre of their choice to helping them maintain their vehicle.

1) T & S: MRF T&S is a one stop shop for a unique tyre shopping experience. An

experience that's fun and enjoyable for the whole family. T&S stocks the entire

range of MRF tyres and is equipped to provide services of computerised wheel

alignment, wheel balancing and tyre changing. It is an answer to the increasing

number of world-class cars which are cruising on Indian roads. Customers shop

for tyres and wheel related services in air conditioned comforts. Each T&S

facility has an exclusive corner where customers can unwind over a cup of hot

coffee as they wait. The technicians at MRF T&S are trained at the MRF Tyre

dome. Currently, there are 90 T&S franchisees across the country and many

more springing up each day.

2) MRF Tyre Dome: The MRF Tyre dome is a state-of-the-art facility with

contemporary computerised equipment to diagnose and correct wheel related

problems. The MRF Tyre dome is manned by factory-trained, experienced

engineers and technicians. The Tyre dome is frequented by car owners who drive

down and enjoy the unique carwash experience with their whole family. It is

open to all days of the week (except on Sundays and public holidays) between 8

AM and 8 PM.

The Tyre dome offers a whole host of services:

Wheel Alignment

- High precision wheel alignment using the latest technology

- 8 digital high resolution cameras are used for stereoscopic measurements

which guarantee fast, precise and reliable measurements independently

- Databank of more than 18,000 imported vehicles which is updated by the

equipment manufacturer with world's leading automotive manufacturers



Wheel Balancing

- Dynamic balancing of wheel assembly for increased tyre life and enhanced

vehicle stability

- Exclusive wheel balancing programs for alloy wheels

Tyre Changer

- A universal and automatic tyre changer is used for all cars and SUV wheels

- Damage-free tyre changing is carried out using a mounting and demounting

tool

- A tyre changer capable of handling both tube type and tubeless tyres

Nitrogen Filling

- Tyres inflated with nitrogen runs cooler and does not lose pressure as quickly

as those inflated with air

- Nitrogen prevents oxidation, thus increasing the life of expensive rims and

tyres

- Nitrogen being an inert gas it cannot catch fire or explode making it safer

than air in tyres

Robotic Car Wash

- A fully automated car wash that cleans your car and leaves it sparkling clean

- The insides of the car are vacuum cleaner while grime and dust are removed

using a special wax based detergent

Optical Headlamp Aligning

- The headlamps of the car are aligned and focused for safe driving

Tubeless Tyre Repair

- Professional repair for radial tubeless tyres

- Repair ensures that the steel belts are not exposed to moisture, preventing

tyre failure



3) MRF Institute of Driver Development: In an economy that is booming with a

GDP growth rate of around 8% per annum, the need of the hour is organised and

efficient transport systems. Developing economies such as India depend heavily

on road transport. Such heavy reliance has led to a dearth of skilful and

competent drivers who drive safely. In order to address this problem, MRF has

instituted a non-profit organisation known as the MRF Institute of Driver

Development (MIDD), which imparts training to unemployed young men in

light and heavy commercial vehicle (LCV and HCV) driving. The objective of

the institute is to produce proficient HCV drivers in the larger interest of the road

transport industry. Over two decades, the institute has turned out over 2000 LCV

and 700 HCV drivers since its humble beginnings in 1988. Apart from its main

objective of training drivers for HCVs, the institute, in the preliminary stage (the

first 6 weeks) of the training process, provides training for LCVs as well. During

this stage, the driver's aptitude for professional driving is ascertained. After this

6-week phase, the trainee spends one year 'on the field' driving Light

Commercial Vehicles, before being admitted to the Heavy Motor Vehicle

(HMV) phase, which extends for another term of 3 months. Along with instilling

in its trainees the spirit of hardship and strength of character, the institute also

organises lessons for its trainees in several key issues like First Aid, prevention

of drug abuse and alcoholism, AIDS awareness, etc. Special classes to learn

Hindi are also conducted to enable the HCV trainees take up driving on National

Permit routes with ease. The end product of one and a half years of dedicated

and rigorous training: professional and efficient drivers who abide by the rules,

facilitating the growth process of the nation



CHAPTER 3

Organisation Structure of MRF Kottayam Plant


Production Manager

Engineering Manager

Quality Manager

Plant Technical Manager

Industry Engineering

Kottayam Plant Head

Accounting Manager

Plant HR Manager

Administration and Public Relations

Security Manager

Safety Manager


HUMAN RESOURCE DEPARTMENT

Organisation chart of HR department

Following is the organisation chart of HR Department:

HR Functions in MRF Kottayam Plant

Following are the major functions of HR Department:

1) Recruitment and Selection

1.1) Staff Recruitment

Staff recruitment is mainly done from campus.


Chief HR Manager

TrainingWelfareEmployee RelationsIndustrial Relation


Basic Qualification

Supervisors: B.sc Physics/ Chemistry with 60 % or above marks (Male candidate

only)

Engineers:

B.Tech (Mechanical/ Electrical) with 60 % or above marks (Male Candidates only)

The following procedures are being used for staff recruitment:

1) Technical test: This is an objective type test based on the academic qualification

of the candidates. It measures the knowledge already acquired by the candidate.

60% of marks must be obtained to pass this test.

2) IQ Test: The candidates’ proficiency in English, maths and his reasoning skills

are being tested. This also requires 60% marks to pass

3) Day Plan: In this test, the candidates will be provided with a list of various

activities including personal and official. And the candidates will be asked to

arrange those activities in the best possible manner. Here the candidates’ ability

to balance his official and personal life is being tested.

4) Group Discussion: Next step is GD where the candidates will be divided into

small different groups consisting of 8-10 members. They have to discuss on a

given topic. The important criteria’s used for evaluating candidates during GD

are as follows: Assertiveness, planning, conflict management, relationship,

emotional maturity and outgoing

5) Interview: After GD, the candidates will have personal interview. An

interview is a face to face observation and personal appraisal method to evaluate a

candidate’s fitness for a job. This is a method by which an idea about the candidate’s

personality, intelligence, smartness and overall attitude can be obtained. The

interviewer can judge the qualities of the candidates – his manners, appearance,

ability to speak, the grasp of things, etc. The interviewed also obtains an opportunity

to know about the company and nature of the job. The interview will be

conducted by Plant Manager and HR Manager. It is to understand the personal and

technical skills of the candidates



6) Medical test: After passing interview the shortlisted candidates will have to

undergo medical examination. The physical standards as to height, weight etc

will be examined. Medical examination is also considered necessary to ensure

that candidates selected do not suffer from any major illness.

7) Application to CMD: The list of candidates who passed the above tests will be

sent to CMD for his approval.

8) Final Selection: This is the final step where the candidates are finally selected, if

they fulfil all the above requirements. He is formally appointed. He will be

issued an appointment letter and is asked to join before a specific date. The

appointment letter specifies the terms and conditions of employment, nature of

job, scale of pay etc.

1.2) Workmen Recruitment

Basic Qualification: SSLC Passed

Age: 18-28 yrs

Height: 5’5”

Weight: 54 Kg

(Only male candidates)

After the receipt and scrutiny of applications, the following procedure is being

adopted for the recruitment of workmen:

1) WRITTEN TEST: The written test consists of general test and psychological

test.

2) MEDICAL EXAMINATION: The physical standards as to height, weight etc

will be verified. Medical examination is also considered necessary to ensure that

candidates selected do not suffer from any major illness.

3) ANTECEDENT VERIFICATION: In this step the representative of the unit will

visit the locality of the applicant and collect details about the candidates as much

as possible with regard to social and political background of the candidate and



also whether he has any criminal background is also verified. They will even

visit the parish to which he belongs.

4) INTERVIEW: An interview is a face to face observation and personal appraisal

method to evaluate a candidate’s fitness for a job. This is a method by which an

idea about the candidate’s personality, intelligence, smartness and overall

attitude can be obtained. The interviewer can judge the qualities of the

candidates – his manners, appearance, ability to speak, the grasp of things, etc.

The interviewed also obtains an opportunity to know about the company and

nature of the job. The interview will be conducted by Plant Manager and HR

Manager.

5) APPLICATION TO CMD: The list of selected candidates will be sent to CMD

for approval.

6) SELECTION: After obtaining approval the candidates will be called to report for

training.

2) Training

Training Policy of MRF

“Is to provide and develop knowledge, skills and behaviour of our employees to

continuously improve their performance.”

To achieve this goal, all the MRF plants together with Corporate Office shall:

Identify and document training needs of each employee through competence

evaluation every year.

Design and publish training calendar and schedule.

Provide training periodicals based on the identified needs as per the

documented schedule.

Provide ‘On the Job Training’ whenever required.

Monitor and evaluate training process and outcome to assess and to decide the

next training cycle requirement.



ASK Principles

Training at MRF is based on ASK principles.

A: Attitude - what do you know about yourself.

S: Skill – what do you do with what you do.

K: Knowledge – what do you know about you and your surroundings.

If change is being made in the attitude of the employees i.e. if positive attitude can

bring in people wonders can happen. So the main objective of the training policy is

to bring changes in their attitude. There are various criteria to evaluate the attitude,

skills and knowledge of the employees. The immediate supervisor will give monthly

report regarding it and training will be given to the employees made on that report.

More emphasis will be given to the area which the employees lack. Training

programme is intended to make the employees aware about their skills, and to

improve their knowledge.

Training Technique

In the Kottayam unit various training programmes will be conducted for employees

as different levels. In a month there will be such training programme for minimum

24 days.

Following are the various training techniques being used in the unit:

1) Level one and level two product and process training

This is being given to level 1 and level 2 employees to make them acquaint to the

various process being carried out in the factory.

2) Level one and level two mentorship training process

This training programme is done to give guidelines to the employees about

mentorship programme. The staff will be the mentors and the workmen will be the

mentees. Each mentor will have five mentees. The target being given by the unit to

the mentors this year is to conduct at least one home visit of the mentee. The home

visit of a superior will be much valued by a subordinate.



3) Quality of life Program

In this programme the husband and wife will be called together and a class

will be given to them about how to balance work life and personal life, about

parenting, about hygiene etc.

4) Leadership and communication training

This is intended to improve the employee’s leadership and communication skills.

5) Yoga classes

6) Art of living

3) Time Office

Following are the various functions of time office:

3.1) Attendance Maintenance

The attendance records are being maintained by time office. For Management staff

the Biometric punching system and for workmen card swapping system is being

used.

3.2) Leave

For Staff

Staffs are eligible for the following leaves:

- Casual Leave( 4 days)

- Sick Leave ( 8 days)

- Privilege Leave(28 days)

Staffs that have joined the unit on 1st of January a year will be eligible for Casual

leave and sick leave in the concerned year. But for being eligible for privilege leave

he must be a staff in the unit in the immediate previous year.

Application for Leave

The staff can submit the leave application online. First it will be sent to the

concerned HOD, after his approval it will be sent to time office online.



Compensatory Leave

If a staff member has to work on any Sunday or any other off day, due to any reason,

he will be eligible for compensatory leave on that week. The staff will be issued with

a Compensatory Card, he have to obtain approval from concerned HOD for working

on Sunday as well as approval for taking compensatory leave in the Compensatory

Card and the same must be presented before time office.

For Workmen

The time office will issue a Leave Card to the employees. Eligibility for leave is

based on their seniority.

* For senior workmen:

- Casual leave(15 days)

- Sick Leave(15 days)

- Privilege Leave: (one PL for every 20 days worked in the immediate previous

year) for e.g. if an employee has worked for 240 days in the immediate previous

year he will be eligible for 12 PL’s.

* For junior workers

- Sick leave(12 days)

- Casual Leave(12 days)

- Not eligible for privilege leave

3.3) Issue of uniform: Workmen will be given uniform material at the beginning of

every year.

3.4) Issue of safety shoes for workers

Safety shoes will also be provided at the beginning of every year. Wearing of safety

shoes in the factory is compulsory.

3.5) Issue of pay Slip



Along with the pay slip the workers are a given 2 cakes of Lifebuoy soaps.

3.6) Filling of application forms

The workers will get assistance from time office to fill the application forms

like Bank Loan Application.

4) Provident Fund

PF is a social security scheme that is being provided by MRF to its employees. It

promotes savings and makes a provision for old age of an employee. Under this

scheme, the employees, while in service contributes periodically from his salary a

fixed amount to the salary. The employer too will contribute a sum to this fund. At

the time of retirement of employer or his death whichever comes earlier, the amount

standing to the credit of the employees together with accrued interest will be paid to

him or his legal heirs as the case may be. Thus the employees will get a lump sum

amount at the time of his retirement.

The employees to be included under this scheme have to submit Nomination Form

in ‘Form 2’ and the company will add him in’ Form 5’. Every month the company

will submit these forms to the PF office.

The employer and employee both will contribute 12% of the employee’s basic pay

towards this fund.

The 12% contribution is distributed as follows:

- Pension Fund (8.33%)

- Provident Fund (3.67%

From the Employers contribution 1.67% will be utilised as follows:

- Administration of provident fund (1%)

- Towards Employee Death Linked Insurance Scheme (EDLIS) (.5%)

- Administration of EDLIS (.1%)

Under Employee Death Linked Insurance Scheme an amount of Rs.1, 10,000 will be

given to the employee’s nominee on the happening of his death.



If the employee resigns from the unit before a period of 9 years and 6 months, he can

withdraw the amount. And if he joins another company he can transfer the PF also.

It is called settlement of PF.

If the employee resigns from the unit after 9 years and 6 months, he either withdraws

the whole amount or can withdraw 3.6 %( PF fund) and the remaining amount can

be kept as pension fund. The board will issue a scheme certificate. If he works till

the age of 50 yrs in any other company and retires, he can apply for Reduced

Pension from the board. And if he works till the age of 58 yrs and retires, he will

eligible for Full Pension.

5) Employee State Insurance Scheme

The fundamental principle of ESI scheme is to make good the loss suffered by the

employee. Employees, who’s monthly salary less than Rs.15000/-, will get the

benefits under ESI Scheme. Employee will contribute 1.75% and the company will

contribute 4.75% of the basic pay towards this scheme. The company will forward

application by online on behalf of the employees to include them under the scheme.

The office will issue a Temporary Form for using by the employee till they get the

actual ESI Card. The employees have to file annual ESI Return to the ESI office.

ESI scheme benefits are as follows

1) ESI Treatment- The employee and his family (family includes his wife and

children) can take treatment from ESI Vadavathoor free of cost by presenting ESI

Card. The employees parents can be included under the scheme provided their

names have been included in Ration

Card and their monthly income is less than Rs. 1500/- and have to prove they are

depending on the employee.

2) Sickness Benefit: If the employees contribute to ESI Scheme for at least 6 months, he

will be eligible for sickness benefit. If the employee have to take leave because of

illness, the ESI office will make good the loss suffered by the employee. They will

give average salary to the employee for the days he took leave. They will deduct two



days from the total number of leave taken and will calculate average salary on that

basis.

3) Accident Benefit

Because of any accident occurred in the factory, if the employees have to take leave

for 20 or 25 days for taking treatment from ESI hospital, the accident benefit will

help the employee. The ESI office will give an average salary to the employee for

the days he is taking leave.

4) Death Benefit

Under this scheme, on the happening of death of the employee the nominee will be

given an amount of Rs. 10,000 for meeting the funeral expenses.

6) Mentorship

A mentorship is a relationship between two people where one individual, known as a

mentor, passes on his knowledge, skills or experience to another individual who is

referred to as the mentee. The arrangement may be formal or informal, and happen

serendipitously or be planned by a third party. A mentor could be a friend, relative,

teacher or other authority figure

The concept of mentorship was brought into MRF when the industrial relationship in

some units was so worse. By implementing mentorship in those units, the situation

falls under control. This success made the corporate office to implement it in all

other units also.

In MRF Kottayam unit, the 250 staffs take the role as mentors and each mentor

allotted with 5 mentees i.e. workmen.

This year the unit asks every mentor to conduct home visit of at least one mentee.

This will help in relationship building. The staffs are asked not to consider it as a

part of routine work rather as a part of life.

Mentorship policy of MRF says that all persons have problem in their life, and all

have the capacity to solve their problems also. The mentor’s role is to help the

employees to make them identify their problems and help them in solving it.



Objectives of Mentorship

Following are the major objectives of Mentorship:

Establishing relationship of trust: The employees must not be more Task

Oriented or must not be more Relationship Oriented rather there must be a balance

between both. There must be a long lasting relationship of trust between the

employees.

Modelling behaviour norms for the workers.

Listening to the personal and job concerns of the workers.

Helping workers to search alternative solutions for the problems.

To promote employee development through learning.

To build organisational capability through sharing and learning with others.

To build better relationship and more effective communication.

Sharing own relevant expressions.

Responding to emotional needs of the workers .

Creating awareness and clear perception on managerial behaviour and social

work culture.

Results of Mentorship

Mentorship results can be tangible or intangible results.

Following are the intangible results of mentorship:

Bring in cultural change in the organisation.

Revitalizes employee’s morale and interest in work and on management.

Revitalizes employee’s confidence and interest in work accomplishment.

Improved communication.

To inculcate ownership feeling.

Following are the tangible results of mentorship:

Reduced absenteeism.

Reduction in work stoppages.

Reduction in the number of disciplinary actions.

Increased labour productivity.

Reduction in accidents.



7) Canteen Facilities

The canteen is also functioning under HR department. Quality food twice a day and

tea and snacks is also providing though canteen. The unit have a canteen supervisor

under the guidance of whom, the activities are smoothly running. There is also a

Canteen Committee comprising of management representatives, and the union

representatives to decide on menu changes and to maintain the standard of food

supplied. For lunch Non- Vegetarian meals is served for 6 days and vegetarian food

for one day. The unit charges Rs. 150/- every month from officers, staffs and Rs.8/-

per day from workmen.

8) Industrial Relationship

Industrial relations are used to denote the collective relationships between

management and the workers. Traditionally, the term industrial relations is used to

cover such aspects of industrial life as trade unionism, collective bargaining,

workers’ participation in management, discipline and grievance handling, industrial

disputes and interpretation of labour laws and rules and code of conduct.

In the words of Lester, "Industrial relations involve attempts at arriving at solutions

between the conflicting objectives and values; between the profit motive and social

gain; between discipline and freedom, between authority and industrial democracy;

between bargaining and co-operation; and between conflicting interests of the

individual, the group and the community”.

9) Welfare Activities

Welfare activities are being with a view to maintain good relation between

management and employees. Following are the major welfare activities undertaken

in the Kottayam MRF unit.

1) Best employee Award: This award is being given every year to the best

employee selected on various factors such as reduced absenteeism, increased



production, behaviour etc. The award will be given by Chairman, which makes

the employees feels proud

2) Long Service Award

This award is given to those employees who served the company for a very long

time. Gold Pin will be given to employees who have 35 years of service. Silver

Salver will be given to those employees who have 25 years of service. These awards

will also be presented by the Chairman of the company.

3) Safety Committee

4) Canteen Committee

5) Safety week celebration

6) Kaizen Award Functions

‘KAIZEN’ is a Japanese word which means suggestion. This award is given to the

employee who has given the best suggestion. This is a part of Participative

Management. The employees are encouraged to given suggestions to the

management regarding the activities in the organisation.

7) Talk on relevant topics by expert resource persons

8) Medical Camp: Eye camp, determatology, PFT camps are conducted. The

employees are working in the factory where there is a greater chance of getting

infected easily. It is because of this reason such camps are being coordinated.

9) Yoga classes for employees

10) Retirement functions: When an employee is retiring from the company, a

retirement function will be properly conducted as a sign of respect for the valuable

service rendered by him in the organisation

11) Presence of management staff in workmen’s family functions like marriage,

funerals of dependents etc.

12) Promoting inter departmental sports activities involving staff and workmen.

13) Quality of life classes for employees and spouses.

14) Factory visit by spouses of employees

15) International Women’s day celebration.

16) Sports and games for employee’s children.

17) Ravi Mammen Sports Scholarship.



18) Summer Camp for employee’s children.

19) Ladies health Camp.

20) Classes for employee’s wives regarding banking methods, soap making etc.

21) Career guidance for students

22) Mammen Mappiliai scholarship for academic excellence.

23) Sports Day for women

24) International Youth Day and Independence Day celebrations etc.

25) Family Planning Assistance.

26) Marriage gifts.

27) Hardship allowance.

28) CSR activities

- Providing scholarship to students in the local schools

- Installation of street light.

10) Disciplinary Actions

The MRF Kottayam unit is very strict in the case of maintenance of discipline in the

organisation. The major disciplinary issue is absenteeism. If an employee took

unauthorised leave for more than three days, following disciplinary actions will be

taken against him:

1) Warning 1: 1st warning will be given to the employee for taking unauthorised

leave for the first time

2) Warning 2

If the employee in spite of giving 1st warning repeat the act of taking unauthorised

leave 2nd warning will be given.

3) Charge sheet and suspension:

If the employee repeats the indiscipline, charge sheet will be prepared against him

and will be suspended for 3 days.

Still he repeats charge sheet will be prepared and suspension will be for 7 days and

for 10 days for subsequent repeations.

If the employee after all these steps till continues the in disciplinary action then he

will be awarded with dismissal



PRODUCTION DEPARTMENT

Organisation Chart:

Following is the organisation chart of Production Department.

MRF Kottayam unit has 4 different Production Plants as follows:

1) Tyre Plant

2) Tube Plant

3) Mixing Plant

4) PCTR Plant

Total Productive Management (TPM)

It is a systematic approach to eliminate waste associated with production equipment

and machinery. TPM focuses on involving machine operator in the routine checks

and cleaning of the machine to detect problems earlier. Other areas of emphasis


Production Manager

Tyre Plant Mixing Plant PCTR PlantTube Plant

Shift ForemenShift Foremen Shift Foremen


include minimizing machine "downtime" resulting from unexpected breakdowns,

fully utilizing a machine's capabilities, and tracking life cycle cost.

Benefits of TPM

With the adoption of TPM, enterprise can benefit from the following aspects:

- Involve machine operators in basic daily maintenance tasks.

- Earlier detection of factors critical to maintaining equipment uptime.

- Attacks the manufacturing equipment losses of breakdown, set ups,

adjustments, reduced speed, scrap and rework.

- Measure impact of defects, sub-optimal performance, and downtime using

OEE (Overall Equipment Effectiveness)

- Reduce capital expenditure through equipment refurbishment and capacity

improvements.

In short the implementation of TPM can lead to significant manufacturing cost

reductions, improvement in production efficiency and allow manufacturing

organizations better placed to survive in increasingly competitive global markets.



2.1) Tyre plant

Organisation chart of tyre plant:

Following is the organisation chart of Tyre Plant:

Process in Tyre Plant

Following are the important processes being carried out in the tyre plant:

1) MIXING

Steel belted radial tyres incorporate as many as ten different ingredients with the

rubber compounds. These compounds include antioxidants, antiozonants, curing

agents, elastomers, sulphur reinforcing agents, cobalt, magnesium oxide, rubber

polymers, calcium carbonate, zinc oxide, carbon black, and processing materials.

The compounds are prepared by mechanically mixing in a “Banbury Mixer” to

mechanically break down the rubber in an attempt to obtain a uniformly

homogenous mass which is subsequently formed into slabs of rubber that are

extruded or calendared for use in tyre building. The slabs of rubber produced are

used to calendar the body plies, chafers, cap plies or edge strips, steel belts, and all


Area Manager

Bead/Band building Tyre Building10” Tuber


other fabric components used in the tyre. Some manufacturers also use a steel

machine to produce their fabric components. Slab stock is used for extruded

components such as the sidewalls, treads, wedges and other solid rubber profiled

components.

2) CALENDARING

In the calendaring process fabric cords and steel cords are coated with rubber stock.

The rubber should be pressed between the individual twisted cord filaments which

make up the steel belts. The body plies and reinforcing strips incorporate polyester

cord that is coated in an adhesive liquid. The cord is passed between large heated

rolls of a calendaring machine. A woven fabric is similarly prepared and calendared

for the anti-chafing strips. Since rubber will not adhere to bare steel, the steel cord

wires for the steel belts are coated with a very thin layer of brass. These brasses

coated, rubber encased steel cords (multi-strand cables) become the steel belts. The

brass coated steel wire is usually purchased from outside vendors and shipped to the

tyre manufacturer in sealed containers to prevent moisture contamination. When

received by the manufacturer the wires should be stored in a temperature and

humidity controlled environment until they are coated with skim stock rubber in the

calendar. It is critical that belt wire not be exposed to moisture as it is susceptible to

corrosion during the manufacturing process, which leads to a breakdown in

adhesion. When the wires are removed from the shipping container they are placed

on roller apparatus in the creel room where temperature and humidity should be

controlled and continually monitored. The wire then passes from the creel room

through the open plant to the calendar. The distance from the creel room to the

calendar varies among manufacturers ranging from 20 to 60 feet. The area of the

plant between the creel room and calendar is not humidity and temperature

controlled so that there is a potential for moisture to accumulate on the bare wire

before it is encapsulated in rubber. This problem is exacerbated by slowdowns,

temporary shutdowns, humidity spikes, and failure to adequately control temperature

and humidity within the creel room. Once the belt wire becomes contaminated with

moisture, it becomes more difficult to obtain proper adhesion of the rubber to the

brass-coated wire. The strongest possible bond between the rubber and the belt wire

is critical in the construction of steel belted radial tyres.



The steel wire passes from the creel room on rollers through aligning combs into the

calendar where the wires are coated with a thin sheet of skim stock rubber. The

rubber should also penetrate the steel cords for maximum adhesion. Both the

polyester cords and steel cords are cut at specified angles and widths for use in tyre

building.

3) EXTRUSION

Some tyre components are formed by extrusion of uncured rubber, including tread

and sidewall components. Extruders are both hot and cold fed systems. Typically,

extruders are barrel shaped. The material is fed into the barrel and the mixed

compound is pushed forward by a screw mechanism.

4) INNER LINER

The inner liner is a critical component of modern tyres. In steel belted radial tubeless

tyres, the inner liner is the substitute for the tube used in the older style tube tyres. It

is formulated to provide the least amount of air permeability possible while

obtaining adhesion to the body plies. This is accomplished by a combination of

gauge and halo butyl content. Inner liners are calendared into thin sheets of specified

thicknesses and then cut to appropriate widths for use in tyre construction. One

indication of inner liners that are excessively thin is cord shadowing where the cords

of the body ply show through the inner liner. Localized thinning can also be caused

by perforations in the body plies which allow inner liner rubber to flow into the body

plies of the tyre resulting in localized thinning.

5) BEADS

Bead wire configurations fall into four primary categories: .037 weft less, .050 wefts

less, .050 single strand, and cable beads. Like belt wire, bead wire is generally

purchased from outside vendors and shipped in hermetically sealed containers to

prevent corrosion from moisture prior to manufacturing. The bead wire is plated

with brass or bronze like the belt wire to provide high adhesion to the insulating

rubber. Insulating rubber is usually pressed into and around the bead when it is

drawn through an extruding die. Bead chaffer, which is rubber reinforcement around

the bead wire, is also placed in the area of the beads to give strength and resilience

during tyre mounting.



6) TREAD

Tyre tread incorporates several special rubber compounds which are simultaneously

extruded to provide the appropriate dimensions for the specific tyre. Typically,

cement is applied to the underside of the tread where it contacts the steel belts or cap

plies. This is commonly referred to as tread cement. It is then cut into the

appropriate length for tyre building. Cement is typically applied to both ends of the

tread piece to obtain maximum adhesion.

7) TYRE BUILDING

It is important to note that most tyre companies now operate on 12 hour shifts with

tyre builders bonuses based on the number of tyres they produce over a set minimum

requirement. Most steel belted radial tyres are assembled by hand. The first stage

builder constructs the tyre on a cylindrical rotating drum. In the first stage of tyre

building process, the inner liner, body plies, beads, bead reinforcing strips and

sidewalls are assembled by the first stage tyre builder. During second stage tyre

building, the steel belts and tread are applied as well as wedges or belt edge gum

strips. If a cap ply is utilized, it would be placed on during second stage as well. The

tyre components, known as “green tyre” components, are held together mechanically

by their tack or stickiness. Prior to assembly the body plies and steel tread

components are stored in large rolls. Prior to the components being transferred to the

building machines they are often stored in this rolled configuration. Woven fabric

liners are placed between the layers of the rolled material to prevent the components

from sticking together. If the rolls of stored material are not promptly utilized, they

can lose their tacky quality. This makes it difficult, if not impossible, for the

components to properly adhere together before vulcanization. In the latter stages of

degradation, sulphur can be visualized on the surface of the components as a white

or greyish layer which is called “sulphur blooming.” Appropriate building practices

require that components which have lost their tackiness, especially components with

sulphur bloom, be scrapped. Most manufacturers, however, allow their tyre builders

to utilize petroleum solvents to “freshen” belt material or body plies that have lost

their tackiness or which demonstrate sulphur bloom. Use of the petroleum solvent

which is supposed to remove the Sulphur, but sometimes merely masks it, and can

cause pockets of trapped gas between components, and can allow the uncured



components to move so that the precise alignment necessary for steel belts is

compromised unless the solvent is completely dry when the components are

assembled.

8) VULCANIZATION (Cooking or curing)

Subsequent to second stage, the green tyre is transferred for vulcanization. The tyre

is coated with a liquid to ensure that it will not stick to the mould. In the mould the

green tyre is placed over an inflatable rubber bladder. Typically, the vulcanizing

machine is a two piece metal mould. The bladder forces the tyre against the mould,

forming the sidewall patterns and tread pattern. The moulding is accomplished

through the use of steam pressure or hot water inside of the bladder. The rubber

components of the tyre are vulcanized by steam generated heat in the mould and

bladder at pressure as high as 400 psi and temperatures of approximately 200/ for

approximately ten minutes. This heat results in chemical and physical changes in the

rubber compounds. At the molecular level, profound chemical changes occur during

vulcanization. The “green tyre” rubber components are transformed from plastic

consistency to the consistency found in a finished tyre. The vulcanization process

chemically and physically links the various components, forming what should be an

inseparable bond. The smaller rubber molecules are linked to the long polymer chain

linked molecules. When the molecules in the various components properly bond, all

interfacing surfaces are obliterated forming the finished green tyre. Thus, any liner

pattern marks from the fabric liner used during storage should be totally obliterated

in a properly cured tyre. One should never see liner pattern marks on a tyre that has

been properly cured (vulcanized). Manufacturers use various time periods for the

vulcanization process. In an effort to reduce the time required for the manufacture of

a tyre, manufacturers are continually attempting to reduce the vulcanizing time. One

method that is utilized is radiation of components prior to vulcanization. It should be

noted that under-vulcanization will result in a lack of adhesion of the components.

One indication of this lack of adhesion in a failed tyre can be pattern liner marks. As

a result of vulcanization, the rubber becomes essentially insoluble and cannot be

processed by any of the means used to manipulate the green rubber during the

assembly process.



9) FINAL INSPECTION AND REPAIR

All tyres are supposed to be visually inspected and placed on a tyre uniformity

machine (TUG) before they are sent to the warehouse. Unfortunately, the visual

inspection process sometimes lasts as little as fifteen seconds and on occasion is

nonexistent. When an abnormality is discovered the tyre is sent to classifiers who

can route the tyre to repair, scrap the tyre, or set the tyre aside for further inspection.

Repairs include buffing and grinding. If a foreign object is ground out of a tyre,

green tyre rubber is placed in the area where finished rubber has been removed. The

tyre is then spot vulcanized or repaired by the repairman so that the repair cannot be

readily seen. Some manufacturers have experienced air bubbles or blisters that can

be visualized on the inner liner of the tyre. These blisters have been repaired by

poking them with an ice pick-like device (awl) either through the tread, both steel

belts and both body plies down to the blister and then pushing the air back out the

hole produced by the ice pick device, or by puncturing the blister from the inside and

pressing the inner liner against the body plies with a hand stitchery. Neither of these

“repairs” is appropriate or satisfactory and can lead to failure of the tyre in the field.

After final inspection/repair, tyres are sent to the warehouse where tread labels are

placed on the tyre. They are then transferred to the retailer.



2.2) Mixing Plant

Organisation chart of mixing plant

Following is the organisation chart of Mixing Plant:

Compounding and Mixing

Compounding is the operation of bringing together all the ingredients required to

mix a batch of rubber compound. Each component has a different mix of ingredients

according to the properties required for that component. Components fall into three

classes based on manufacturing process: calendaring, extrusion, and bead building.

The extruder machine consists of a screw and barrel, screw driver, heaters, and a die.

The extruder applies two conditions to the compound: heat and pressure. The

extruder screw also provides for additional mixing of the compound through the

shearing action of the screw. The compound is pushed through a die, after which the

extruded profile is vulcanized in a continuous oven, cooled to terminate the

vulcanization process, and either rolled up on a spool or cut to length. Tire treads are

often extruded with four components in a quadraplex extruder, one with four screws

processing four different compounds, usually a base compound, core compound,


Area Manager

2 K 16, F 620 BD MixingD3/D4 Banbury


tread compound, and wing compound. Extrusion is also used for sidewall profiles

and inner liners.

The calendar is a set of multiple large-diameter rolls that squeeze rubber compound

into a thin sheet, usually of the order of 2 meters wide. Fabric calendars produce an

upper and lower rubber sheet with a layer of fabric in between. Steel calendars do so

with steel cords. Calendars’ are used to produce body plies and belts. A creel room

is a facility that houses hundreds of fabric or wire spools that are fed into the

calendar. Calendars’ utilize downstream equipment for shearing and splicing

calendared components. Mixing is the process of applying mechanical work to the

ingredients in order to blend them into a homogeneous substance. Internal mixers

are often equipped with two counter-rotating rotors in a large housing that shear the

rubber charge along with the additives. The mixing is done in three or four stages to

incorporate the ingredients in the desired order. The shearing action generates

considerable heat, so both rotors and housing are water-cooled to maintain a

temperature low enough to assure that vulcanization does not begin. After mixing,

the rubber charge is dropped into a chute and fed by an extruding screw into a roller

die. Alternatively, the batch can be dropped onto an open rubber mill batchoff

system. A mill consists of twin counter-rotating rolls, one serrated, that provide

additional mechanical working to the rubber and produce a thick rubber sheet. The

sheet is pulled off the rollers in the form of a strip. The strip is cooled, dusted with

talc, and laid down into a pallet bin. The ideal compound at this point would have a

highly uniform material dispersion; however in practice there is considerable non-

uniformity to the dispersion. This is due to several causes, including hot and cold

spots in the mixer housing and rotors, excessive rotor clearance, rotor wear, and

poorly circulating flow paths. As a result, there can be a little more carbon black

here, and a little less there, along with a few clumps of carbon black elsewhere, that

are not well mixed with the rubber or the additives. Mixers are often controlled

according to the power integration method, where the current flow to the mixer

motor is measured, and the mixing terminated upon reaching a specified total

amount of mix energy imparted to the batch.



2.3) TUBE PLANT

Organisation Chart of Tube Plant

Following is the organisation chart of technical department:

Almost all bicycle tires, many motorcycle tires, and many tires for large vehicles such as

buses, heavy trucks, and tractors are designed for use with inner tubes. Inner tubes are torus-

shaped balloons made from an impermeable material, such as soft, elastic synthetic rubber, to

prevent air leakage. The inner tubes are inserted into the tire and inflated to retain air

pressure. Large inner tubes, which are large inflatable torus’s, can be re-used for other

purposes, such as swimming and rafting (see swim ring), tubing (recreation), sledding, and

sketching. Purpose-built inflatable torus’s, are also manufactured for these uses, offering

choice of colours, fabric covering, handles, decks, and other accessories, and eliminating the

protruding valve stem. Tubes are being manufactured in this plant. Natural rubber, carbon

and other chemical mix are put in the Banbury machine for processing. Tube sheets produced

are sent for tube extrusion


Area Manager

SupervisorSupervisorSupervisor

Tube curing /PackagingTube Extrusion11 D1/ 11 D2 Banbury

WorkersWorkersWorkers

http://en.wikipedia.org/wiki/Torus


2.4) Pre Cured Tread Rubber Plant

Organisation Chart

Following is the Organisation Chart of PCTR Plant:

The MRF PRETREADS Advantage

Greater tyre Mileage

Better Road Grip

Well researched Tread Patterns through years of innovation and Testing

Proven Rubber Technology

Range of patterns to suit various applications

Low operating Cost

MRF PRETREADS is the most advanced pre-cured retreading system in India. MRF

forayed into retreading as far back as 1970. Today, MRF has perfected the art of re

cured retreading with its extensive knowledge in tyres and rubber.


Area Manager

2 K 16, F 620 BD MixingD3/D4 Banbury


In the MRF PRETREADS system, the tread rubber is pre-cured from MRF's factory

in a carefully controlled environment, thereby ensuring world-class quality. Today,

MRF PRETREADS has emerged as the Mileage leader in pre-cured retreading and

also has the specialized expertise required for retreading Radial Tyres of Truck, Bus,

LCV and Passenger vehicle

Pre Cured Tread Rubber Manufacturing Process: Best quality natural rubber in

correct proportion with different chemicals and activators is added and the same is

mixed in the machines specially designed for the purpose and the correct size of

extruded rubber is duly cut in the required lengths.These cut rubber is sent for curing

process which is done under hydraulic press which has the dies preset with the

required ordered pattern designed for long life of the pre cured tread rubber.The

back of the pre cured rubber is slandered which is done under special machines and

supervision as this gives the necessary bonding to the tyre on which the pre cured

tread rubber is fitted. 100% physical visual inspection is done to ensure that there is

no damage to the pre cured tread rubber which is sent to the packing department for

onward dispatch to the market.

Pre cured Tread Rubber used for Cold Process tyre Remoulding : The pre cured

tread rubber manufactured are durable in quality and made with high quality

Synthetic Rubber that is helpful in offering excellent mileage and superior abrasion

resistance. These Pre cured tread rubber manufactured is available in various designs

and sizes, and are also known for their optimum physical and rheological properties.

Pre cured Tread Rubber product: Pre cured tread rubber is produced with the

finest natural and synthetic rubber, high-tech carbon black and chemicals of proven

quality. They have installed the latest & efficient hydraulic press for making of their

Pre cured tread rubber. They use best alloy moulds for giving the perfect finish to

the tread rubber. Each and every batch of Arihant oil & chemicals, rubber compound

produced has to undergo stringent tests to ensure that it is of required consistency

and specification for final product quality. Their Pre cured rubber is custom-built in

a wide variety of tyre designs and sizes, for heavy trucks, light commercial vehicles

and passenger cars. They can make the tread rubber according to customer's

requirement & specifications



ACCOUNTING DEPARTMENT

Department policy:

P: Achieve 100% processing of Supplier’s Bills

Q: Zero supplier complaint

C: Reduce stationery cost

D: Payment release to supplier on time

S: Maintain zero accident

M: Achieve 5 suggestions from employees a year

Department Structure

Functions of Accounting Department

Following are the various functions of Accounting Department:

1) Accounts

Accounts section consists of:

- Financing


Accounts RM Stores Engineering Stores Shipping

Senior Plant Accounts Manager

Finance Costing


- Costing

Accounting year being followed in the Company is from 1st October to 30th

September. The Accounting system followed is Standard Costing. The corporate

office will give a production plan for all the units and the units will prepare

individual plan for achieving their production target. The accounts department will

prepare Production Plan as well as Revenue Expenditure Plan for the unit. Source of

Fund of the unit is the fund that they are being receiving from the corporate office.

The unit will prepare the monthly budget and the head office will credit the amount

to the account at SBT Vadavathoor and HDFC branch, Kottayam. The funds are

mainly used for the purchase of raw material, wage & salary payments, etc.

Raw Material Stores

Following are the main raw materials being used:

Rubber, carbon black, Chemicals, Fabric, Bead wire

The unit receives the Raw materials from the Company Depos. The Kottayam unit

has a purchase depot at Nagampadam, Kottayam, where rubber is purchased and

stored. When the materials are being received by RM stores, they will issue ‘Goods

Received Note ‘against the respective Purchase order and it will be sent to the

accounts section for the passing and payment of bill. The main function of RM

stores is Inventory control. Raw Material required for the next day only will be

stored so as to reduce the inventory carrying cost.

Engineering Stores: The function of this section is as same as that of the RM stores,

but in this the spare parts of the machinery are being stored.

Shipping: The tyres being manufactured in the different units have to be sent to the

company depots situated in different parts of India. There are 100 such depots. The

corporate office will send the monthly plan of how much products must be sent to

each depot by the unit. It is the responsibility of shipping department to carry out this

function of sending finished products to the Depots. For transporting the products it

requires various documents like Transfer Memo and various Forms as required by the

VAT and Sales Tax authority. The shipping department will collect all such

documents from the authority.



FINANCIAL STATEMENTS

BALANCESHEET: As at 30.09.2010. As at 30.09.2009 Rs. Crore Rs. Crore Rs. Crore Rs. CroreI. SOURCES OF FUNDS(1) Shareholders’ Fundsa) Share Capital 4.24 4.24b) Reserves and Surplus 1686.44 1357.18 1690.68 1361.42(2) Loan Fundsa) Secured Loans 495.57 137.89b) Unsecured Loans 820.12 482.28(3) Deferred Payment Credit 46.38 51.86 3052.75 2033.45II. APPLICATION OF FUNDS(1) Fixed Assets a) Gross Block 3367.90 2734.33b) Less: Depreciation 2038.99 1800.77 c) Net Block 1328.91 933.56d) Capital Work-in-Progress 497.72 1826.63 285.01 1218.57(2) Investments 72.69 148.57(3) Deferred Tax Asset 15.00 12.35(4) Current Assets, Loans and Advances 7a) Inventories 1110.68 650.47b) Sundry Debtors 811.49 580.03c) Cash and Bank Balances 52.79 59.89d) Loans and Advances 127.29 97.99 2102.25 1388.38Less: Current Liabilities and Provisions (a) Current Liabilities 792.67 587.17(b) Provisions 171.15 147.25 963.82 734.42Net Current Assets 1138.43 653.96 3052.75 2033.45



PROFIT AND LOSS ACCOUNT:

Year ended 30.09.2010 Year ended 30.09.2009 Rs. Crore Rs. Crore Rs. Crore Rs. CroreINCOMESales 8080.45 6141.94Less: Excise Duty 627.73 7452.72 478.14 5663.80Export Incentives 11.02 9.04 Other Income 30.95 25.36 7494.69 5698.20

EXPENDITUREMaterials 5015.31 3709.74Interest 63.10 68.92Other Expenses 1620.87 1271.74Depreciation 260.75 249.32 6960.03 5299.72Profit for the year before Taxation 534.66 398.48Less: Provision for Taxation: Current Tax 182.50 159.00 Deferred Tax (Note 3 (a)) (2.65) (18.04) Fringe Benefit Tax – 1.20 Short provision of earlier years 0.83 180.68 3.29 145.45Profit after Taxation available for appropriation 353.98 253.03 Amount available for appropriation 353.98 253.03 Appropriations Dividends Interim 2.54 2.54 Final - Proposed 8.06 8.06 Special - Proposed 10.60 – Tax thereon 3.52 24.72 1.80 12.40 Balance Surplus transferred to General Reserve 329.26 240.63 353.98 253.03Basic & Diluted Earnings per Share (in Rs.) 834.63 596.61



QUALITY ASSURANCE DEPARTMENT

Organisation Chart of Quality Assurance Department

Following is the organisation chart of Quality Assurance department:

Quality Policy of MRF

“ Is to maintain market leadership through continuous quality improvement.”

To achieve this goal, all the MRF plants and corporate office shall pay particular

attention to the following:

- Product/ process improvements by field/ plant performance monitoring and

prompt service to the customer.

- Up gradation of machinery to meet the increasing needs of the customers.

- Continuous training of all the employees in order to acquire necessary skills

and knowledge.

All the plant level, the respective Senior General Managers, General Managers are

assigned the responsibility of carrying out the quality system by collaborating with

corporate functions.


Plant Manager

Shift Supervisors

Senior Quality Assurance Manager

Shift Supervisors

Workers WorkersWorkers

Shift Supervisors


Functions of QA Department

It has the primary aim of customer satisfaction. Hence its primary duty is to ensure

that any complaint from customers should be seriously taken and should be

communicated to the concerned. And all efforts must be taken to ensure that the

requirements of the customers are met. And next function is to improve profitability

by reducing defects and waste.

Process audit, Material and product inspection are other important function of

Quality assurance department. The Basic Standard Practise is a document which lay

down the Process specification. How the process have to carry down, what are the

dos and don’ts of each process etc. The QA department checks whether the process

are being carrying out accordingly. The inferences are recorded and follow up action

is initiated whenever any abnormality is found. Special attention is paid to critical

areas and problematic areas.

It is the duty of QA department to inspect the quality of raw materials as well as

finished goods.

Whenever a product or process doesn’t meet the specification, the process will

discontinue and the product are kept held using a tag called the NCM (Non

Confirming Material). Analysis of defects and failure are done and corrective and

preventive actions are initiated so that such non conformance doesn’t repeat. All

major highlights of Quality assurance reports are discussed in weekly and monthly

quality meetings so as to make everyone aware of the situation and to initiate

permanent corrective actions. The performance of the product are recorded and

monitored on a daily basis so that any abnormal deviation can be easily detected.

Quality Assurance also initiates studies on the basis of the principle of continuous

improvement. FMEA (Failure Mode Effect Analysis) is carried out and control plan

is also prepared to ensure that the cause of failure is avoided before they happen. QA

educate workmen on quality standards as well as the consequences of not following

quality norms. Whenever new machinery is installed QA carries out the

industrialization of machinery, in collaboration with engineering and technical

department. Audit of raw materials supplied are conducted periodically to ensure

that material procured are of right quality and also to ensure that they are stored in

proper manner.



SAFETY and SECURITY DEPARTMENTS

Organisation Chart of Safety Department

Following is the organisation chart of safety department:

Safety

MRF –Kottayam strictly follows all safety norms and no fatal accidents were

reported in last many years due to the continuous efforts taken by Plant safety

committee. Periodic awareness programmes, Safety day observation and safety week

celebration keep employees vigilant round the year to comply with safety standards.

SHE (Safety Health and Environment) pillar taking care of all activities as guided by

TPM steering committee.

Increasing number of accidents involving workers has drawn our attention towards

safety measures in the factories. Accidents not only affect workers losing their

livelihood but also employers in terms of compensation to be paid to the workers.

Accidents are a significant cause of dispute between workers and management. The

Factories Act, 1948 has laid down certain measures for the safety of workers

employed in the factories. Safety measures result in improving the conditions under

which workers are employed and work. It improves not only their physical

efficiency, but also provides protection to their life and limb. Inadequate provision

of safety measures in factories may lead to increase in the number of accidents.

Safety Policy of MRF

“MRF is committed to maintain healthy, safe and environmentally responsible work

conditions in its manufacturing plants.


Plant Head

Safety Officer 1 Safety Officer 2


To achieve this goal, all the MFR plants and the corporate office shall

Minimise the impact of our manufacturing activities on the employee’s health,

safety, environment and society.

Comply with all applicable legal, statutory, regulatory and customer specific

requirements related to the health, safety and environment.

Optimise the consumption of resources without compromising on health,

safety and environment.

Continuously monitor and upgrade machinery to eliminate incidents and

minimise risks and pollution.

Continuously monitor and improve work conditions and performance related

to health safety, and environment.

Train all our employees to perform their activities in a safe and

environmentally responsible manner.

It is our endeavour that each of our employees returns home safely without injury

and ill health today and every day.”



TECHNICAL DEPARTMENT

Organisation Chart of Technical Department

Following is the organisation chart of Technical Department:

Functions of Technical Department

Following are the functions of technical department:

1) Raw Material Testing: All the raw materials are tested and realised if they

confirm to the specifications. When the material is received, raw material stores

personnel arrange for collection of samples from the received material for testing

and will send it to testing lab along with sample transfer note. Raw material are

tested based on the BSP (Basic Standard Practise) Standard test procedure and is


Plant Head

Senior Plant Technical Manager

Shift Supervisors Shift Supervisors Shift Supervisors

Workers Workers Workers


compared with the specification issued by the corporate technical. If the material

confirms to the specification, the material is realised for production. If the material

doesn’t conform to the specification, more samples will be tested and realised for

production if it is OK. If any of the re tested samples are not OK, then the material

will be sent to the corporate technical lab and the material will be accepted or

rejected based on the advice received from the corporate office. If the material is

rejected then the raw material rejected note is prepared and the material is returned

to the supplier by raw material stores.

2) Positive Recall: This is a process in which raw material and work in progress

is realised for production without testing in case of emergency. In such cases each

plant technical will issue letters to stores, production and quality with relevant

details. The work in progress and finished goods produced using that material will

be kept properly identified at all the stages till the remaining material is tested and

approval is given. Compound mixed for other units can be dispatched even before

testing is done provided the testing can be completed before the mix reaches the

other units and they start using it.

3) In Process Material Testing: In process material are tested by the technical

department as per the plan of checking whether there is any deviation from the

specification has happened either in the material used or in the plant process

4) Finished Good Testing: It is done both at both at the plant as well as corporate

level technical departments. It is done to ensure that the product confirms to the

required standards. In case of tyres, adhesion, mounted tyre dimension and cut tyre

analysis are done in the plant. For PCTR, cured dimension and weights are checked.

5) Issue of specification: Certain specifications will be sent from corporate

technical department and these specifications are being used as guidelines for the

issue of plant specifications. Based on the corporate specification, to adopt

specification for the plant processing conditions trial and error method and past

experiences are being used.

6) Process Control: Process control is surveillance, checks or tests conducted

regularly. The data generated during test and surveillance audit is used to control the

process. Changes are made if required in the specifications to achieve process ability



targets. The changes are documented through plant change letters. If there is any

problem, the problem will be analysed for variation in raw material or process

conditions. Any deviation found will be corrected or alternative source of raw

material will be tried. Process will be repeated to check whether it is OK.

7) Finished Good Re classification: Finished goods do not confirm to first quality

norms are kept separately and are jointly inspected by production, technical and

quality assurance departments. Based on the joint decision the materials are either

send as seconds, repaired or scrapped.

8) Tool inspection which includes the inspection of various tools.

9) Design change process: Design change is a Technical Programme Opening

Report (TPOR) or a technical authorization. The necessary specification,

formulation, drawing and tools are described in it. A micro plan is prepared

whenever TPOR is to be implemented. The micro plan has to be approved by the

initiator of the particular TPOR. Necessary specification is issued and proper

communication is given to production, and quality assurance department through

intimation letter. All the relevant processing parameters observed while the project is

being done will be complied and sent to the initiator of the TPOR, the final design

review verification and validation will be done by the initiator of TPOR

10) Heat Engineering: It is a process by which we arrive at the curing specification

and fix cure time. Validation of cure time is also done periodically to find out

whether any variation has occurred in compounding properties which necessitates

changes in cure time. Blow point study and thermocouple study are normally used as

tools in heat engineering

11) Control of non confirming product: It is the responsibility of technical

department to dispose off the non- confirming material in suitable manner. Non-

confirming materials are tied with ‘red tag’ ( non confirmation tag) which contains

all the relevant details. Technical in charge review the Non-conformance and take

decision on the method of disposal and that is recorded on the Non-confirming

materials tag.



INDUSTRIAL ENGINEERING DEPARTMENT

Organisation Chart of Industrial Engineering Department

Following is the organisation chart of Industrial Engineering Department:

Industrial Engineers integrate people, technology, and information to enhance a

globally competing enterprise. Integration refers to the ability to understand the need

for looking at broader system and scope and not focus on individual problems. Most

engineering disciplines fail to do this. Focus is on improving production systems

Analysis of the production system requires similar training, tools, and knowledge.

All production systems must perform at highest possible efficiency, best quality and

with least cost especially in a globally competitive enterprise.

Industrial Engineering relates to the following functions:


Plant Head

Senior Industrial Engineer

Industrial Engineers Industrial Engineers Industrial Engineers


Quality Control

Manufacturing Processes

Plant Layout/Material Handling

Engineering Economy/Cost Estimating

Time Studies/ Labour Cost

Human Factors/ Safety

Simulation/ Statistics

Industrial engineering is a branch of engineering dealing with the optimization of

complex processes or systems. It is concerned with the development, improvement,

implementation and evaluation of integrated systems of people, money, knowledge,

information, equipment, energy, materials, analysis and synthesis, as well as the

mathematical, physical and social sciences together with the principles and methods

of engineering design to specify, predict, and evaluate the results to be obtained

from such systems or processes. Its underlying concepts overlap considerably with

certain business-oriented disciplines such as Operations Management, but the

engineering side tends to emphasize extensive mathematical proficiency and usage

of quantitative methods. While the term originally applied to manufacturing, the use

of "industrial" in "industrial engineering" can be somewhat misleading, since it has

grown to encompass any methodical or quantitative approach to optimizing how a

process, system, or organization operates. The various topics of concern to industrial

engineers include management science, financial engineering, engineering

management, supply chain management, process engineering, operations research,

systems engineering, ergonomics, cost and value engineering, quality engineering,

facilities planning, and the engineering design process. Traditionally, a major aspect

of industrial engineering was planning the layouts of factories and designing

assembly lines and other manufacturing paradigms. And now, in so-called lean

manufacturing systems, industrial engineers work to eliminate wastes of time,

money, materials, energy, and other resources. Industrial engineers typically use

computer simulation (especially discrete event simulation), along with extensive

mathematical tools and modelling and computational methods for system analysis,

evaluation, and optimization.



ENGINEERING DEPARTMENT

Organisation Chart of Engineering Department

Following is the organisation chart of engineering department:

Engineering department functions are divided as follows:

1) Mechanical Engineering

2) Electrical Engineering

3) Civil Engineering

The main function of this department are new machinery layout preparation, erection

and commissioning of new machinery, preventive maintenance, breakdown


Chief Engineering Manager

ElectricalCivilMechanical

Plant Head

ProjectMaintenance Maintenance Project ProjectMaintenance


maintenance, condition monitoring and over hauling of machinery and other related

equipments. Erection, commissioning, operation and maintenance of utility items

like generators boilers, compressors, pumps, freezer lines and cooling towers and

maintenance of material handling systems like lift, hoist, chain block, are done by

engineering. The maintenance of equipment of pump house, and training centres are

also done.

1) Mechanical engineering

1.1) Preventive Maintenance

All equipments that need preventive maintenance are listed out. It is ensured that

equipment history and manuals are available for all the activities. A preventive

maintenance schedule is prepared after a careful analysis of breakdown in the

machine and based on the personal experience of the maintenance personnel. Annual

maintenance schedule thus prepared is divided into weekly schedule preventive

maintenance schedule for the weekly taken and the tools, manpower and spares are

arranged. Necessary clearances are obtained from planning and the machine is

realised for maintenance. The scheduled maintained are carried out based on work

instruction and experience. Then the machine is checked and handed over to

production. Based on the number and nature of breakdowns in each machine during

the year the preventive maintenance is reviewed and a new schedule is prepared for

the next year.

1.2) Breakdown maintenance

The defective machinery is identified either by production or engineering and a

maintenance request is generated. In case of production detecting the fault,

production raises the maintenance request and in the case of engineering detecting

raises the fault; engineering makes the maintenance request and arranges for the

tools, maintenance personnel and spare part. The required maintenance jobs are

carried out and the machine is thoroughly checked. If the machine is OK, then it is

handed to production otherwise necessary corrections are assign done. Every month

a down time analysis is done and permanent corrective action initiated in the case of

recurring failures. Mean Time between Failure (MTBR) and Mean Time To Repair

(MTTR) are measures adopted to track the improvement.



2) Electrical Engineering

MRF KTM unit falls under the EHP (Extra High Power) consumer’s category.

All consumer who use 66 kV and above are included in this category. The incoming

supply for our unit is 110 KV. Normally the unit get power from Pallom substation

but they have a provision to get power from Pala substation also in case of

emergency. The total connected load of the unit is 30000 HP. The maximum

demand is 10000 KVA. For backup power supply they have 3 generator of 1000 KV

and one generator of 5000 KV capacity.

2.1) Erection and commissioning of new machinery

In case of erection of new machinery, the following procedures are followed:

A scheme is prepared with input information from corporate electrical. The required

load and existing capacity is verified and alternative source are studied. Work

schedule of prospective contractors are submitted along with their quotation. After

verifying whether the contractor is qualified to do the job, the contractor is fixed and

work will be given to him. A schematic diagram as per the standards of electrical

inspector is prepared. This is forwarded to electrical inspectorate and they in turn

scrutinize the proposal and intimate any changes to be incorporate. When this is

done, initial approval is obtained from electrical inspectorate and work commences.

After the erection of machinery is over the inspectorate will conduct an inspection. If

the conditions are satisfied then a safety certificate will be issued which states that

the machine is safe for use. The machine is to be charged only after all these

formalities have been completed. All documents related to the above process have to

be maintained. Any changes in the load requirement or usage should be promptly

communicated to the electricity board, but does not require any sanction if the total

load required remains within the contacted load. Otherwise prior sanction has to be

obtained. Periodic calibration of energy meters and half yearly electrical inspection

by Electricity board will be co- ordinate by electrical engineering section.

2.2) Preventive Maintenance (electrical)

All the equipment that requires preventive maintenance is listed out. It is ensured

that equipment history and manuals are available for all machines. A preventive

maintenance schedule is prepared after a careful analysis of breakdown in machine.

The scheduled maintenance activity is carried out on work instruction and then the



machine is handed over to production department based on number and nature of

breakdown in each machine during the year. Preventive maintenance schedule is

reviewed and a new schedule is prepared for the next year.

2.3) Breakdown Maintenance:

The defective machinery is identified either by production or engineering and a

maintenance request is generated. In case of production detecting the fault,

production raises the maintenance request and in the case of engineering detecting

raises the fault; engineering makes the maintenance request and arranges for the

tools, maintenance personnel and spare part. The required maintenance jobs are

carried out and the machine is thoroughly checked. If the machine is OK, then it is

handed to production otherwise necessary corrections are assign done. Every month

a down time analysis is done and permanent corrective action initiated in the case of

recurring failures. Mean Time Between Failure (MTBR) and Mean Time To Repair

(MTTR) are measures adopted to track the improvement.

3) Civil Engineering

Civil engineering department does the work of preparation of project proposals,

drawings and estimates as per the requirements for the construction and extension of

new factory buildings equipment foundation, plant office, construction of cables and

pipelines etc. Laisoning with government bodies and local authority for getting

approval of building plants and permits is also the function of this department.

Project is executed on item rate contracts. Finalisation of contract rates and issue of

work order are done by civil engineering department. Supervision and providing

technical support are done along with the job of recording the work done, taking

measurement and check measuring contract bills. Maintenance of all civil structures

is the function of civil engineering. Periodic repair of concrete floor, a/c sheet

roofing and maintenance of plumbing and sanitary fittings such as toilet, washing

facilities etc, de silting of water drains and annual repainting of building are the

maintenance activities. Work permits are issued to the workmen to ensure their

safety. These are done after carefully checking the conditions. The following permits

are given – height permit for working at a height above 3 meters, portable electrical

equipment permit, confined area work permit, excavation permit and hot work

permit. Once the work permit is given, proper supervision is to be ensured.



CHAPTER- 4

Swot Analysis

SWOT analysis of MRF tyres:

Strengths

MRF is India's largest tyre manufacturing company, and among the dozen

largest worldwide. MRF holds 15th position in the global market. It exports to more

than 65 countries.

A leader in the category MRF holds the No.1 position for the last 21 years.

Extensive distribution

Good R&D initiatives

Became the first domestic company to venture into the niche area of developing

and manufacturing of aviation tyres branded ''Aero Muscle'' for helicopters and

aircrafts which targeted the defence sector

MRF scored a major breakthrough by being among the very first in India to

manufacture and market Nylon tyres.

MRF is the first Indian company to export tyres to USA - the very birthplace of

tyre technology.

MRF launched India’s First Eco-Friendly Car Tyre- MRF ZSLK

MRF was ranked highest in customer satisfaction in a study conducted by JD

Power Asia pacific.

MRF have at present 8 Manufacturing Plants spread all over India.



Weaknesses

Cost Pressures - The profitability of the industry has high correlation with the

prices of key raw materials such as rubber and crude oil, as they account for more

than 70% of the total costs.

Pricing Pressures – The huge raw material costs have resulted in pressure on the

realisations and hence, the players have been vouching to increase the prices,

although, due to competitive pressures, they have not been able to pass on the entire

increase to the customer.

Opportunities

Growing Economy leads to Growing Automobile Industry leads to Increasing

OEM demand that in turn leads to Subsequent rise in replacement demand

With continued emphasis being placed by the Central Government on

development of infrastructure, particularly roads, agricultural and manufacturing

sectors, the Indian economy and the automobile sector/ tyre industry are poised for

an impressive growth. Creation of road infrastructure has given, and would

increasingly give, a tremendous fillip to road transportation, in the coming years.

The Tyre industry would play an important role in this changing road transportation

dynamics.

Access to global sources for raw materials at competitive prices, due to

economies of scale

Steady increase in radial Tyres for MHCV’s and LCV’s



Threats

Continuous increase in prices of natural rubber, which accounts for nearly one

third of total raw material costs

Cheaper imports of Tyres, especially from China, selling at very low prices,

have been posing a challenge. The landed price is approximately 25% lower than

that of the corresponding Indian Truck/ LCV tyres. Imports from China now

constitute around 5% of market share.

With crude prices scaling upwards, added pressure on raw material prices is

expected

Ban on Overloading, leading to lesser wear and tear of tyres and subsequent

Slowdown in demand

However, this would only be a short-term negative.

Changes of automobile industry



CHAPTER - 5

FINDINGS AND SUGGESTIONS

FINDINGS

MRF ltd is the no 1 largest tyre manufacture in the country and the 13 th largest

in the world

MRF exports its products to more than 75 countries in the world

Good working environment

Training and development programmes conducted according to needs

Good Performance appraisal system

Updated technologies and methods

Environmental and quality standards with awards of recognition

Cost of raw materials affects profit.

SUGGESTIONS

Proper methods should be adopted for waste management.

Inter departmental relationship must be improved.



CONCLUSION

BIBLIOGRAPHY

Books

[1].

[2].



[3] Kothari.C.R, Research Methodology: Methods and techniques, New Age

International Publishers, New Delhi, Reprint edition, 2007

Website

www.mrftyres.com


os report

Documents

dozen largest

specialized

basic standard

commercial

uniroyal goodrich

aero tyre

passenger

greater tyre