Christ University Institute of Management (CUIM)City Campus, Bangalore

Masters of Business Administration, 2012-14

Organization Structure Training (OST)

ReportOn

Amalgamations Valeo Clutch limited

-By Joe Arputhan

MBAL -1221316

Acknowledgement

I thank Amalgamations Valeo Clutch limited and it’s Human Resource Department for providing this amazing opportunity on such a short notice.

I am grateful to Mr. Alfred, General Manager (Human Resource) for his valuable feedback and guidance throughout the training period.

I would also like to thank everyone in Valeo Clutch limited for their immense support during the whole tenure.

I owe a huge debt of gratitude to Christ University Institute of Management for designing this training module, without which I could have never known the functioning fundamentals of all the departments in a large scale organisation.

I would also like to thank Prof. C.K.T. Chandrasekhar, HOD Administration, for his in depth knowledge and ideas about conducting a successful OST.

My special thanks to Prof Seema Chakraborthy, who has been my mentor throughout the training tenure and without his guidance and feedbacks this could have been an impossible task.

Finally, this project would not have been possible without the whole hearted co-operation and support of my friends and family. They showed understanding and patience wherever needed.

Joe Arputhan, MBAL 1st year

1221316

The Amalgamations group is one of India's largest light engineering groups with interests in

businesses that are predominantly in automobile components but also extend to diverse areas such as

plantations, batteries, printing, book selling, pesticides and plantation products, engineering tools and

paints. With a heritage of over 150 years of serving customers from farmers to tycoons the group

comprises of 47 companies with manufacturing units spread across India and a workforce of over

15000 employees. Originally comprising of a few European owned and managed companies, the

group is now wholly owned and managed by Indian promoters. The Amalgamations Valeo clutch

private limited is a unit company of the Amalgamtions group of chennai

Present in 28 countries, employing 68,000 people at 124 production sites, 21 Research centers, 40

Development centres and 12 distribution platforms.*, Valeo worldwide is an independent industrial

Group fully focused on the design, production and sale of components, integrated systems and

modules for the automotive industry, mainly for CO2 emissions reduction, Valeo ranks among the

world's top automotive suppliers.

History of the Organisation:

It all began in 1923 in Saint-Ouen, France, with the production of brake linings and clutch facings.

Nearly a century later, Valeo is one of the world's leading suppliers of components, integrated

systems and modules for the automotive industry, mainly for CO2 emissions reduction.

This remarkable industrial success story can be summed up by 4 main periods.

1923-1950: Starting out:

Eugène Buisson, the French representative for Ferodo brake linings, opened workshops in Saint-Ouen

to manufacture, under license, his own brake linings and clutch facings. A few years later, he began

manufacturing complete clutches. In 1932, the company was listed on the Paris Bourse. On the eve of

World War II, the company owns almost all patents on clutches.

1950-1980: Integration of new activities:

The company made a series of acquisitions, created new subsidiaries in Spain and Italy, built plants

and became a key player in the modernization of automotive components.

By acquiring Sofica and becoming a shareholder in Usines Chausson, the company was able to

integrate a third core business: thermal systems.

The subsequent acquisition of SEV-Marchal enabled the company to incorporate electrical and then

electronic activities. The electrical activity was later strengthened by the acquisition of Cibié-Paris-

Rhône and Ducellier.

1980-2000: Focus on globalization:

In 1980, the shareholders chose the name "Valeo" – "I'm fine" in Latin – to unite the different brands

and teams under the same name.

In 1987, the Group adopted a major international expansion strategy. With the acquisition of Neiman

and its subsidiary, Paul Journée, Valeo entered the security systems business and was able to

strengthen its wiper and lighting activities. By acquiring ITT Industries' electrical systems business,

the company was able to assert its leadership position as leader in wipers and park-assist systems.

At the same time, the Group sold off its non-strategic activities (brake linings, ignition and horns) and

adopted the "5 Axes methodology", with the aim of achieving customer satisfaction through Total

Quality.

21st century: The era of technological innovation and emerging markets:

Valeo focuses on the development of innovative technologies that satisfy market needs.

The Group’s strategy is based on two main vectors of growth: CO2emissions reduction, and Asia and

emerging countries.

Valeo offers solutions for reducing the consumption of internal combustion engines, as well as for

hybrid and electric vehicles, and for lowering the energy consumption and weight of components.

Valeo has a streamlined organization comprising four Business Groups (Powertrain Systems, Thermal

Systems, Comfort and Driving Assistance Systems, and Visibility Systems) and the Valeo Service

aftermarket activity.

Valeo-Business groups:

Valeo has 4 Business Groups, comprising 16 Product Groups, supplying the original equipment

market and the aftermarket.

For original equipment segment, Valeo supplies all major automakers worldwide

For replacement parts and services, Valeo supplies the original equipment spares (OES) and

independent aftermarket (IAM) through its dedicated Valeo Service organization.

The 4 Business Groups are: Powertrain Systems, Thermal Systems, Comfort and Driving Assistance

Systems, and Visibility Systems.

Powertrain Systems:

This Business Group develops innovative solutions to reduce fuel consumption and CO2 emissions,

while maintaining driving pleasure. These solutions include a complete range of products for the

electrification and hybridization of vehicles.

Thermal Systems:

These systems ensure greater efficiency and autonomy, longer-lasting components, as well as greater

comfort, whatever the outside temperature. The technologies developed by this Business Group

contribute to optimizing cabin comfort and to reducing energy consumption.

The Thermal Systems Business Group comprises four Product Groups: Climate Control, Powertrain

Thermal Systems, Compressors, and Front-End Modules.

Comfort and Driving Assistance Systems:

These systems improve safety and driving comfort by offering easy access and enhanced 360°

visibility around the vehicle, while creating an ergonomic, intuitive relationship with one’s

environment.

The Comfort and Driving Assistance Systems Business Group comprises four Product Groups:

Driving Assistance, Interior Controls, Interior Electronics, and Access Mechanisms.

Visibility Systems:

These systems offer solutions for all weather and driving conditions in order to see and be seen. The

systems developed by this Business Group contribute to safety by improving visibility of the vehicle

and the driver’s visibility, while saving energy.

The Visibility Systems Business Group comprises three Product Groups: Lighting Systems, Wiper

Systems, and Wiper Motors.

Profile of the products manufactured in Chennai plants:

Amalgamations-Valeo Clutch Private limited has three plants near Chennai.

Plant at Vallam

Plant at Madhavaram

R&D at Sholingnallur

The plant at Madhavaram does the manufacturing of Spare Parts and the Vallam plant does the

Assembly. The Research and Development is located in Sholingnallur.

The Power train Systems Business Group comprises five Product Groups: Electrical Systems,

Transmission Systems, Engine Management Systems, Air Management Systems, and Hybrid and

Electric Vehicle Systems.

Transmission systems:

The dual dry clutch, a key innovation representing a viable alternative to hydraulic automatic

transmissions. With two clutches (one for even gears and one for odd gears), this system

allows the driver to change gears with no interruption to torque and no jolting, just like an

automatic transmission. Without a hydraulic circuit, it also improves efficiency, cutting

consumption by 4-6%

Clutches with and without self-adjusting technology

Clutch discs with a new generation of multi-louver dampers offering effective protection from

vibrations;

Environmentally friendly clutch facings with no heavy metals, manufactured using a water-

based process;

Release bearings with built-in automatic self-centering;

Hydraulic clutch actuators

Fig:1 Dual Dry Clutch

Electrical systems and hybrid and electrical systems:

In the field of micro-hybrid systems, Valeo is the only supplier to offer two stop-start

systems, based either on the StARS starter-alternator (Starter Alternator Reversible System)

or on a reinforced starter. The second-generation “i-StARS” is externally different due to the

integration of control electronics on the electrical machine, reducing the volume and

facilitating installation;

Starters and alternators;

Electric motor drives;

Power electronics for hybrid and electric vehicles.

Engine Management systems and Air management systems:

Complete engine control systems for gasoline and VNG (vehicle natural gas) engines;

Engine control units for direct and indirect injection gasoline applications or those adapted to

alternative energies (VNG, Flex Fuel);

Engine components: ignition coils, injectors, sensors and canister valves;

EGR (exhaust gas recirculation) and air intake modules.

Mission of the Organisation:

To deliver to our OEM and aftermarket customers around the globe.

Added value through innovative, total quality, cost effective solutions and

services,

Responding to the automotive challenges of fuel economy, safety and

comfort.

Objectives :

1. Total quality

2. Cost control

3. Advanced technology

4. Global presence.

Strategy :

A strategy based on CO2 emissions reduction and growth in emerging markets

Valeo’s strategy focuses on reducing CO2 emissions in all market segments. Through innovation

and accelerated development in emerging markets, the Group will ensure above-market organic

growth in each region and actively participate in the consolidation of the industry. At the same time,

strict control of costs and investments will enable Valeo to achieve best-in-class profitability.

Technological innovation

The Group’s strategy is to focus on CO2 reduction in all classes of vehicles. This includes not only

products for the hybridization and electrification of vehicles but also for weight reduction and lower

energy consumption as well as technologies that optimize fuel consumption and enable smarter

driving. Valeo expects to double its sales for technologies linked to CO2 emissions reduction by

2013.

Valeo’s drive for growth covers not only these products. As demand for more fuel-efficient cars

booms, as urbanization and ageing populations continue to be major demographic trends, and even as

cars become smaller, there is another trend to be addressed: that for more differentiation, more

customization, more ergonomy and more ease of use. Valeo’s comfort and driving assistance systems

fit into this category of product, and low-speed maneuvering in particular will be an important source

of future growth.

Growth in emerging markets

In addition, Valeo will accelerate its presence in emerging markets, in particular in China and India.

The Group will invest around two-thirds of of its capital expenditure in emerging markets to reinforce

its historical positions, notably in China, India, Brazil, Thailand and Turkey, and progressively

develop its presence in Russia.

Through this strategy, the Group anticipates higher than market growth in each region, to achieve 12

billion euros of sales in 2013 and 15 billion in 2020.

The Aftermarket:

It is seen as a crucial strategic challenge by the people at Valeo.With a potential market of one billion

vehicles worldwide-a figure that is growing regularly every year- the aftermarket represents a major

driver of Valeo’s global growth. Valeo’s original equipment business is aimed at a market of 75

million new vehicles per year, Valeo Service works for a market comprising all vehicles on the road,

which represents one billion vehicles worldwide and is expanding by 3% to 4% every year. Out of a

total aftermarket estimated at 250 billion euros ,the product lines at valeo represent nearly 20 billion

euros.The valeo’s four business groups are investing in the Aftermarket to achieve growth in this

segment through greater customer satisfaction.

Purchasing strategy:

Building up a best supplier base, helping the suppliers improve, integrating them into our product

development, and involving them in our operations: these are the four key processes that enable us to

reach our objectives: total quality, cost control, advanced technology, and global presence.

Supplier quality

Products:

Zero incidents

Single-digit PPM

Projects:

100% of initial samples right first time and on time

Logistics:

Zero logistical incidents

100% order-fill rate

Competitive costs

Continuous cost reduction for materials and components.

At least one suggestion per supplier per month.

Advanced technology

100% of our designer suppliers integrated at phase 0 of our projects.

Development times cut in half.

Valeo Quality standards

From initial evaluation to Continuous Quality Improvement, we select the best suppliers and set

ourselves the objective of growing together.

Our customers—car manufacturers—are constantly raising their quality requirements. Valeo and its

suppliers must anticipate and satisfy these expectations in order to align themselves with the finest

international standards.

Single-digit PPM

Resolution of warranty issues

Projects of perfect quality

All achieved with maximum responsiveness and a positive attitude.

In order to select the best suppliers and help them constantly improve their performance,

Valeo relies on three quality-evaluation tools:

Selection process

Qualification system

Continuous improvement

Operating culture:

A culture based on operational excellence

Valeo’s operating culture is based on achieving operational excellence, thanks to world-class quality

levels, a set of values applied by all employees, and a strong commitment to social and environmental

responsibility.

Values

The Group has defined five key values to achieve operational excellence, which are applied by all

employees:

Ethics

Transparency

Empowerment

Professionalism

Teamwork

The 5 Axes methodology

To ensure Customer Satisfaction in terms of cost, quality and delivery, Valeo has developed, and

implements rigorously in all sites, its 5 Axes which are driven by continuous improvement and

founded upon the principle of right first time. Total Quality is a state of mind at Valeo, involving all

employees at all levels and at all times.

Fig: 2 the 5 Axes Methodology

Commercial strategy:

Geographical Presence:

Present in 28 countries, the Group employs 68,000 people at 124 production sites, 21 Research

centers, 40 Development centers and 12 distribution platforms.*The Group optimizes its industrial

facilities on an ongoing basis in relation to customer demand, markets and labor costs. 

Commercial organization

Valeo develops, produces and sells original equipment and aftermarket products and systems for all

car and truck manufacturers. The Group's commercial policy extends well beyond everyday

commercial relations and involves building very close partnerships and accompagnying its customers

in developing their markets throughout the world.

Sales and Business Development

The Sales and Business Development Function comprises three networks:

National Directorates: which act as veritable ambassadors for Valeo in given geographical areas.

Their role is to promote the Valeo brand in these regions, establish close relationships with the key

customers in the regions and to resolve locally any legal or social problems, where necessary. There

are ten National Directorates, based in China, Germany, India, Italy, Japan, North America, Poland,

South America, South Korea and Spain; 

Group Customer Directors: who are the Sales Directors responsible for major automaker

customers. Each represents Valeo in dealings with a given manufacturer and coordinates relations

with the customer on a Group-wide basis, for all Product Families; 

The Sales and Business Development network: consisting of Sales Directors reporting to the

Group's Product Families, defines the commercial strategy and is responsible for day-to-day customer

relations.

International Affairs

International Affairs consists of three networks: 

National Directorates, which act as ambassadors for Valeo in given geographical areas. There are

eight National Directorates, based in China, Germany, Italy, Japan/Korea, North America, Poland,

South America and Spain. Their role is to promote the Valeo brand in these regions, establish close

relationships with the key customers in the regions and resolve locally any legal or social problems,

where necessary; 

Group Customer Directors, who are the link between the Group and the major automaker customers.

These eight Directors each represents Valeo in dealings with a given manufacturer and coordinate

relations with the customer on a Group-wide basis, for all Product Families; 

Sales and Business Development network, consisting of twelve Sales Directors, each one linked to a

different Product Family. This network defines the commercial strategy to be implemented and is

responsible for day-to-day customer relations."

Customer Events:

To be closer to the carmaker customers and to emphasize the Group's innovations from the early

beginning of a project on, Valeo organizes Technology Shows on customer sites, as well as events

called "Ride & Drive".

These events give Valeo the opportunity to present its latest innovations by domain, and to customers

the chance to test them "in real life" by driving demo cars especially equiped for this occasion. During

those operations different contacts in the customer company come together on a private track, like

managers from Platforms, R&D, Product Marketing and Purchasing. Relating to the business

development with its clients, Valeo also participates in major Motor Shows.

An organization by Business Group focused on growth and profitability

Policies and Procedures Followed:

Environment, Occupation, Health and safety policy:

Objectives:

1. Documenting , implementing and maintaining our systems to minimise the risk of

employees, interested parties and its impact to the environment.

2. Implementing a Performance Measurement System for Conditional improvement of

the educational , occupational, health and safety management.

3. Achieving and maintaining compliance to applicable legal and other requirements.

4. Preventing pollution through design , manufacture treatment and recycle of products,

minimising wastes and environmental impact.

5. Managing site facilities minimising waste, energy, packing material consumption and

optimising other natural resources.

6. Educating employees on the need for occupational health and safety conservationa of

the environment.

7. Communication of EHS policy to all employees , customer , suppliers.

Total Quality Policy:

Committed to achieve Customer Satisfaction through Quality , innovation , delivery and price of our

products.

1. To fully implement in depth our quality of Management System.

2. To meet the Customer requirements and Certification.

3. To promote Total Quality Culture through implementation of Valeo 5 core strategies

(involvement of personnel , Valeo production system , constant innovation , supplier

integration and total quality)

4. To setup the standards of all functions and reduce process visibility by continuous

improvement variability.

5. To implement appropriate measures for achieving zero detects in all areas through QRDC

approach in Safety , Production , Logistics , Supplier , Projects and Warranty through SAN ,

GEN, SHVGL, Attitude and Rigor.

Sustainable Development:

Valeo has been engaged for many years in a process of sustainable development, in line with the

principles of the United Nations Global Compact which the Group signed in 2004. This process –

covering environmental responsibility, corporate social responsibility and commitment to society –

aims to respond to the legitimate human, environmental and economic concerns of Valeo’s various

stakeholders, including employees, customers, shareholders, suppliers, communities and public

authorities.

Valeo is committed to honoring its responsibilities in all of these areas while respecting national

legislation and international treaties and agreements. To reaffirm its commitment, the Group has

published a Sustainable Development Charter outlining 15 principles to be respected by all

employees, as well as suppliers and subcontractors.

The 15 principles of Sustainable development :

Guarantee that our activities comply with all applicable legislation and international agreements.

Maintain the industrial excellence and profitable growth of all our activities in a manner that is

compatible with sustainable development.

Ensure that our Code of Ethics is distributed and applied at all of the Group's sites and by our

suppliers and subcontractors.

Deploy the ISO 14001 environmental management system and the OHSAS 18001 occupational health

and safety management system at all of our sites.

Distribute Group directives that aim to improve risk management and make sure that they are

understood and implemented by the sites.

Improve the environmental and safety performance of our processes and products at every stage of

their life cycle: supply, manufacturing, distribution, transport, use and end of life.

Optimize the transportation of persons and products in order to reduce greenhouse gas emissions.

Limit the use of natural resources and encourage the use of renewable resources and energies.

Eliminate substances that are hazardous for the environment and health from our products and

processes.

Protect the safety of people and property.

Ensure the diversity of our teams at every level.

Encourage flexibility and develop our employees' skills by proposing training programs that meet

their needs.

Pursue an active and contractual labor relations policy.

Develop the local know-how, appeal and presence of Valeo by encouraging durable relationships with

local partners.

Promote the implementation of sustainable growth policies by our suppliers and subcontractors.

The 5S procedures:

ELEMENT PERFORMANCE CRITERIA

1. Sort needed from un-

needed

1. Identify all items in the work area

2. Distinguish between essential and non-essential items

3. Place any non-essential item in a appropriate place, not in the

work area

4. Regularly check that only essential items are in the work area

2. Set the workplace in order 1. Identify the best location for each essential item

2. Place each essential item in its assigned location

3. After use immediately return each essential item to its

assigned location

4. Regularly check that each essential item is in its assigned

location

3. Shine the work area 1. Keep the work area clean and tidy at all times

2. Conduct regular housekeeping activities during shift

3. Ensure the work area is neat, clean and tidy at both beginning

and end of shift

4. Standardise activities 1. Follow procedures

2. Follow checklists for activities where available

3. Keep the work area to specified standard

5. Sustain the 5S system 1. Clean up after completion of job and before commencing next

job or end of shift

2. Identify situations where compliance to standards is unlikely

and take actions specified in procedures

3. Inspect work area regularly for compliance to specified

standard

4. Recommend improvements to lift the level of compliance .

The 5 Priorities methodology is applied around the world,by all Group employees, in order to deliver

“zero defects” to the customer. The 5 Priorities are:

Personnel Involvement: this implies recognizing skills,enhancing them through training and giving

people the

means to carry out their responsibilities. Employees are particularly encouraged making suggestions

for improvement and participating actively in the work of autonomous teams;

The Valeo Production System (VPS): the VPS is designed to improve the productivity and quality of

products and systems. It involves the following approaches: pull flow organization, flexible

production resources, the elimination of all non-productive operations and stopping production at the

first non-quality incident

Constant Innovation: to design innovative, easy-tomanufacture, high-quality and cost-effective

products while reducing development time, Valeo has set up an organization based on project teams

and the simultaneous

Engineering of products and processes

Supplier Integration: this allows Valeo to benefit from suppliers’ ability to innovate, to develop

productivity plans

with suppliers and improve quality. Valeo sets up close and mutually beneficial relationships with a

limited number of world-class suppliers and sustains these relationships in

the long term;

Total Quality: in order to meet customer expectations in terms of product and service quality, Total

Quality is

required throughout the Group and from its suppliers.

Functions of Various departments and their Managers :

Logistics Department:

Strategically managing the procurement, movement and storage of materials, production

of parts and despatch of finished products(child parts) and the related information flows, into and

through the organisation and its marketing channels to meet customer needs for goods

and service and to achieve sustained profitability by cost-effective order fulfilment.

It includes a complete process of planning, managing, controlling and coordination to make sure that

the goods reach the right place, at the right time, for the right cost and in a right condition.

1. Ensuring all the requirements of the customers(door to door) are met on time in an efficient and

safe manner.

2. To coordinate with third party logistics (3PLs).

3. To ensure that there is a safe and timely dispatch of child parts which makes up the clutch cover

For Assembly which is to be done in the Vallam plant.

4. To create and maintain customer support.

5. To maintain coordination with vendors and transport carriers and suppliers.

6. To ensure that no fraud is committed.

7. To ensure timely supply and payment of goods and reduce inventories

8.To follow the kosu approach (to measure the resources required to manufacture a part) and

standards like Visual Reorder and total productive maintenance so to cut product development

lead times, stabilize new production lines quickly while avoiding start-up problems, and cut costs at

every stage of the

process.

The Manager organise the storage and distribution of goods. They plan and manage the movement of

goods in a supply chain, liaising with many parties including suppliers of raw materials,

manufacturers, retailers and consumers.

Key Result Areas and Key performance Areas :

The KRA solely determines the performance appraisal and it is fixed by the HOD’s of the various

Departments.

Key Result areas:

1. Managing, planning and coordinating the work in the company’s Logistics

Department. 

2. Ensuring efficient and cost effective transports, deliveries,

mobilisation/demobilisation of equipment and materials 

3. Managing and coordinating logistical movements regarding projects, site

personnel and other employees. 

4. Managing the vehicle control as well as the records of drivers’ duties at all

times. 

5. Ensuring that all logistical requirements are met on time and within budget. 

6. Ensuring that the Logistics Department operates in conformity with company

standard guidelines for Quality Control, Health, Safety and Environmental

awareness. 

7. Ensuring supply and allocation of drivers and heavy equipment operators to

ensure timely deliveries and collections. 

8. Coordination and constant communication with Stores, Purchasing,

Workshops and Site Operations regarding scheduling of transports, and

availability of equipment and materials in a timely manner 

The Purchase Department:

In order to give Valeo’s strategy a truly competitive edge, the role of the Purchasing Department is to

reduce costs by sourcing from only the most globally competitive suppliers, implementing extremely

rigorous selection processes for new suppliers, applying the total quality and innovation approach to

suppliers and sub-contractors, and establishing close partnerships with the most innovative and best

performing suppliers.

In the fourth quarter of 2010, the new Purchasing Department was rolled out across the Group. Six

Commodity Purchasing Directors (Purchasing Family) were appointed to lead the cross-departmental

purchasing teams spread out in each key area of the world. Each is responsible for defining the

strategy for one of the six main

Commodities and for managing all the Group’s activities related to integrating its suppliers.

The six commodities relate to:

1. Steel and conversion;

2. Plastics and conversion;

3. Non-ferrous metals and conversion;

4. Electro mechanics;

5. Electronics;

6. Indirect purchases.

Valeo has continued to deploy resources to help its suppliers improve their own quality processes.

The Group’s QRQC approach continues to be implemented to assist suppliers in achieving zero

defects. In 2010, Valeo instituted a new strategy referred to as Supplier Quality Step Up in order to

improve the quality of its suppliers.

Valeo thus brought its expertise, covering key commodities, to 60 of its suppliers, who accounted for

35% of the Group’s supplier incidents. A technical analysis of the gap existing between the supplier’s

technology and best practices in theautomotive industry was carried out when this program was

launched. A quality improvement plan was written as a result and is reviewed periodically to ensure

continuous progress. In particular, implementing this new strategy allowed supplierincidents to be

reduced by 25% compared with 2009.

Supplier Relationship Management (SRM) is an essential tool in the relationship between Valeo and

its suppliers. Modules such as the Incident Management System, Product Quality Assurance

(qualification of new components in projects) and the Supplier Scorecard (quality performance, cost

and delivery timeframe) can be accessed on a secure extranet. These enable Valeo and its suppliers to

work closely together

and share standardized processes, for example to share project schedules and to exchange and approve

component qualification documents.

Key Result areas for the purchase Department :

1. Saving on material cost

2. Inventory turns

3. On time procurement 

4. Material rejection scrap ratio

5.Vendor development

Production planning and control:

All of the four basic phases of control of manufacture are easily identified in production planning and

control. The plan for the processing of materials through the plant is established by the functions of

process planning, loading, and scheduling. The function of dispatching puts the plan into effect; that

is, operations are started in accordance with the plant. Actual performance is then compared to the

planned performance, and, when required, corrective action is taken. In some instances re-planning is

necessary to ensure the effective utilization of the manufacturing facilities and personnel. Let us

examine more closely each of these functions.

Functions:

1. Loading

2. Schedule

3. Combining Functions

4. Dispatching

5. Reporting or Follow – up

6. Corrective Actions

7. 7. Re-planning

The supply Quality Assurance is a major function of the production planning control. It involves two

kinds of testing 1.Inbound testing and 2. Outbound testing

Inbound Testing or inhouse testing involves the testing of raw materials before they are fed into the

line.

Outbound Testing involves the testing of finished Products.

KRA‘s:

1. Finalizing AOP (Annual Operating Plans) & cascading them in to monthly & daily

production plans for each end product for domestic & Exports customers.

2. Capacity planning of various shops & Execution of production plans in accordance

to customer requirements.

3. Coordinating with marketing, purchase & manufacturing for fulfilling the product

requirements on daily, weekly & monthly basis.

Quality Department:

Quality is a key demand from consumers and automakers.It is a prime concern for all Group

employees on a daily basis: it is the cornerstone of Valeo’s 5 Priorities methodology and an integral

part of the Group’s culture The role of the Quality network is to ensure that everyoneis aware of and

understands their individual responsibilities.It also consists of evaluating problems and requirements

in terms of training support, and of training, supporting and validating lessons to be retained and

shared to avoid any recurrence. The Valeo Quality network operates as a decentralized network and

involves each of the 5 Priorities:

the Quality System Manager validates Internal Procedures, checks that they are applied properly, and

updates them to ensure that they are in line with both internal and external quality standards;

the Project Quality Manager ensures that the Quality methodology is duly applied to projects and

checks that it covers projects for their entire duration, in accordance with Valeo standards;

the Supplier Quality Manager manages the quality of components delivered, from the project phase

right through the product’s lifecycle, and assists supplier progress through the implementation of

improvement plans;

the Production Quality Manager ensures that quality specific tools are properly implemented within

the manufacturing process and coordinates the deployment of control plans as well as work

instructions. They also act as the “voice of the customer” for all quality incidents to ensure the

customer’s total satisfaction;

the Quality Managers build the Quality network, and develop its skills and abilities by instilling the

QRQC spirit into the teams making up all the networks. With this in mind, Level 3 QRQC, which is a

method of coaching in problem-solving tools, was implemented in 2010.

The Department of Production:

The production department at Madhavaram takes care of producing and supplying of child parts for

the manufacturing of clutch set .the clutch cover and the Disc Assembly together forms the clutch set.

Some of the child parts manufactured are

1. Cover plate

2. Diaphragm

3. Pressure Plate

4. Fulcrum

5. Drive Stamp

The various processes involved are:

1. Cushion Disc hot forming (cushion disc-manufacture and heat treatment)

2. Diaphragm hot forming (blanc heat treatment)

3. Press shop (for production of blanc and drive plates)

4. SQA(regular heat treatment)

5. Short peening (for releasing internal stress)

6. Induction hot forming(for hardness increasing)

Key Result Areas (KRA)-

1.Achievement of Production Target

2.Cost Effective Production

3.Yield Improvement / Maintenance

4.Maintaining high level of Productivity

5.Maintenance of GMP

6.Effective and efficient Maintenance of Plant

7.Harmonious Industrial Relations

8.Maximum Capacity Utilization

9.Wastage Minimization.

The Maintenance Department:

The maintenance Department is concerned with to ensure a safe workplace and to keep all the utilities

on. Also maintenance departments are generally responsible for installing new equipment, designing,

modifying and fabricating a wide variety of manufacturing, and process equipment. if something

breaks down, they are tasked with getting production going again as safely, quickly and economically

as possible. 

KRA ‘s :

1. Initiates, implements, and manages the plant maintenance program based on best practices in

the

2. Industry, with an emphasis on planning/scheduling and preventive/predictive maintenance.

3. Monitors the use and inventories of spare parts, maintenance supplies, and equipment and

initiates reordering

when necessary.

4. Prepares reports, analyzes data, and makes recommendations for improving plant

5. Operations and solving maintenance-related problems.

6. Supervises plant maintenance personnel.

Research and Development:

Designing the automobile of tomorrow, creating technologies and products in line with the market

while anticipating its expectations and driving the market through innovation:

These are the fundamental principles of Valeo’s Research & Development strategy.

Valeo engineers seek to anticipate automakers’ demand for solutions that offer real value-added for

drivers: improved comfort, safety, performance and respect for the environment.

The fundamental priority for Valeo R&D is reducing the fuel Consumption and continous

improvement of all existing products (volume gains and energy improvement)

Valeo’s Business Groups are thus working in harmony with

new system approaches, which can bring out innovations and ground-breaking technologies

Finance Department:

The Finance Department analyzes, quantifies and manages risks arising on the Group’s financial

activities

(mainly currency, interest rate, commodity, liquidity and counterparty risks). Along with the

functional networks and the National Directorates, the Business Groups are responsible for identifying

and assessing risks within their remit, and for ensuring compliance with local regulatory

requirements. They are also responsible for ensuring that the guidelines and recommendations defined

at Group level are properly applied throughout the operational entities.

KRA‘s :

6. Directs installation and maintenance of accounting, timekeeping, payroll, inventory,

property and related procedures and controls

7. Designs, manages and monitors reporting systems to all departments and to aid

management decision in achievement of stated objectives regarding revenue,

profitability, and market share.

8. Prepares statements and reports of estimated future costs and revenue.

9. Directs the maintenance of ledgers, journals, accounts receivable, revenue

depreciation, cost, property, operating expenses, insurance etc.

The Human resources Department:

The Human Resources Department is centered on workplace relations, career development, training

and skills

managment and employee involvement; Human Resources is responsible for skills management

(recruitment, compensation, internal mobility and team motivation), training and adherence to the

Group’s Code of Ethics.

It pursues a strategy to support the Group’s international development by devising a global policy that

is deployed

in accordance with the characteristics of local employment markets.

KRA’s :

1. Recruitment/ Selection

2. Workforce Planning

3. Diversity  management 

4. Performance Management

5. Reward Management

6. Workplace Management

7. Industrial  Relations

8. Safety And Health Workplace

The Project Engineers works in tandem with the R&D department and would carry out the design

created by the R&D department. if the prototype is successful it can intimated to the production

Department or else it has to be specified for correction action to R&D.

SWOT analysis of the organization:

For SWOT analysis, the following criterions are considered:

Markets

Competition

Facilities

Employees

Marketing

Research and Devlopement

Management and environmental Setting

STRENGTH Weakness Opportunity Threat

Markets A strength

because the

organisation is

multinational

and reputed

Compared to

its competitors

the

Aftermaket

sales are pretty

low

A huge

potential in

Aftermarket

estimated at

250 billion

euros

Competition Reputed

leader in

passenger and

Trucks

Segment

The pricing is

high when

compared to

its competitors

Faces stiff

completion

from

companies

like LUC and

Cocomus in

the Asian

markets

Facilities Less training

measures and

high lead time

and

Transportation

costs.

Motivational

programs and

training

measures can

be given;

integration of

the

manufacturing

and assembly

plant

Employees 3 shifts a day

1st shift: 6am

to 2pm

2nd shift:2pm

to 10 pm

3rd shift:10pm

to 6 am

Delay in

production

because of

lack of

Organisation

Lack of

organisation

among

operators and

frequent

problems in

unions

Marketing and

distribution

10 distribution

platforms

across 27

countries , a

renowned

leader

No special

marketing

strategies,

since it is

already

reputed

Increasing

participation

in auto expos

Research and

Development

180 Research

centres spread

across 27

countries

The four

Business

groups

focussing on

Innovation

targeting the

Aftermarket

Environmental

Setting

The child parts

manufacturing

plant is in

madhavaram

and the

A highly

integrated

plant will soon

come in

Oragadam

Assembly

plant is in

Vallam which

is about 40

kilometres

from

madhavaram

near Chennai

within 2

months

Organisational hierarchy :

The Valeo plant at Madhavaram has a functional structure whose head is the Site General Manager.

Since the environment is stable and there is no much of variety when it comes to products,the

functional structure works well for Valeo. The functional units of human resources, Maintenance &

Safety, Purchase , Logistics , finance , process and plant management act as specialised units and

contain personnel with various but related skills grouped by similarities.

Fig 3 : Organisation Structure at Vallam Plant-Valeo

Factors influencing organisational structure :

In general the factors that influence organisational structure are

1. Size

2. Span of control

3. Training

4. Mission Statement

5. Technology

6. Environment

7. Networks

Size - Number of personnel, outputs (customers, sales), resources (wealth), or capacity provide

measures of an organization’s size. But, organizations grow and the structure changes with increases

in size. As organization’s grow there is a greater need to regain the coordination that could be

accomplished informally in a small group, and there is a tendency for division of labor with more and

more specialists and departments.

To achieve greater coordination, layers of management may be added to create hierarchy. As

hierarchy increases power becomes difficult to concentrate at the top and there can be a distribution of

power to lower managers. Decentralization can occur as lower level managers assume decision-

making, but to retain some degree of standard operational procedures, the organization increasing

relies on written policies and procedures. This formalization of organizational rules helps to maintain

order across the growing organization and ensures conformity and continuity in practices.

Also, with growth organizations begin to divide the work into ordered units that perform specialized

work. Increased specialization of work into departments is termed differentiation. The extent to which

an organization is departmentalized, divisionalized, and hierarchically layered characterizes the

organization’s complexity.

Increased organizational size has important implications for management: it can limit the flexibility of

individual work, affect how much authority can be delegated, and lead to an emphasis on results

rather than how the work is actually performed (because results are easier to monitor).

Span of Control – “How many employees can or should a manager oversee?” That is the issue of span

of control. Span of control has interesting implications for work, how work is performed, and the

organizational structure. A narrow span of control describes a low number of workers under a

manager. The structure that is created is tall, or mechanistic. The tall pyramid structure is created by

the hierarchical layering required to maintain a low manager-to-employee ratio. The tight supervision

inherent in the mechanistic structure is characteristic of bureaucracy. Work is performed under tight

controls, little variability of tasks is permitted, and there is high specialization or departmentalization. 

When a manager oversees a large number of employees, the high span of control produces a flat

organization, called organic structure. The flat pyramid is characteristic of organizations with low

hierarchy. Less hierarchy with a larger number of employees per manager means that workers have

more autonomy or freedom to perform their tasks. Control is sacrificed for creativity.

Training

Proper training helps to encourage a healthy organizational structure. When employees are schooled

in how the company operates, what the proper channels of communication are and how to work

together, these tasks and the organizational structure remain intact. Reinforce the company's structural

integrity by making sure that each employee takes part in regular corporate trainings designed to

introduce new concepts within the framework of the organizational structure.

Mission Statement

An organization should be designed to rally around the corporate mission statement. A mission

statement is more than just a marketing device placed on the corporate pamphlets; it should

summarize the beliefs of the company and how the company wants its customers and vendors to

perceive it. Create a mission statement that the entire company can understand, and then encourage

managers and executives to reinforce the mission statement each day. A company that is unified

behind a single vision is better conditioned to maintain a strong organizational structure.

Technology

A company's technology aids in work-flow design by facilitating communication and work

procedures. Technology aiding in work procedures is called operational technology. Different types of

industries, departments and tasks require different levels of operational technology to function.

Technology that facilitates communication is called information technology or IT. Similar to

operational technology, IT changes depending on the needs of the organization's design.

Environment

The external setting in which the business functions has a deep impact upon many elements of the

organizational design. Organizations function within two types of environments: the general

environment and the specific environment. General environments consist of the organization's set of

economic, legal, political, cultural and educational surroundings. An organization's specific

environment comprises the company's market, industry standards and competition.

Networks

Organizational design extends outward from the company to include a network of supportive business

and corporate allies. Organizations that co-evolve with other firms often end up stronger because of

the mutual support. Some organizations carefully manage their network of alliances, while others

organically build support through contributions natural to the course of commerce. Some alliances

produce business-boosting activities such as joint-ventures or co-branding.

Significant factors for success :

Diversified customer base:

Sales of 10,868 millions in euros as of 2011 compared to 9,632 in 2010

Global footprint:

Present in 28 countries, the Group employs 68,000 people at 124 production sites, 21 Research

centers, 40 Development centers and 12 distribution platforms.

Outstanding quality levels:

The Quality dept at Valeo follows QRQC approach (Quick Response Quality Control): QRQC for

safety, plants and suppliers. Any problem that arises is immediately identified and analyzed on the

spot by the parties involved. A corrective action is defined and implemented within 24 hours.This

approach is applied to all areas: Production, Quality, Projects, Purchasing,Logistics and Safety.

Innovations meeting Automotive challenges:

Since Valeo places a greater focus on Aftermarkets the four business groups strive for innovation in

the Aftermarket. A recent success would be the success of the clutch conversion kit.this product

enables a cost saving of 30% compared to the cost of replacing a dual mass flywheel and offers to

25% durability.the dual mass flywheel is a competitor’s product

Product promotional measures:

One particular reason for less or no product promotional activities is because the people here at Valeo

believe the company is reputed ,renowned ,has its own range of products with continuous

innovation ,already established customer base. Nevertheless Sales and Business development

activities are active

The top three strategies for the Sales and business development team is

1. Generating new orders

2. Concentrating efforts on growth in emerging particularly in the Asian Markets

3. Selling of products aimed at reducing CO2 emissions

Career planning and promotion policy of employees:

Career planning is seen as a very systematic and comprehensive process of targeting career

development and implementation of strategies, self assessment and analysis of opportunities and

evaluate the results.

Career planning must link individual needs and aspirations with organizational needs and

opportunities, evaluating, advising and informing its staff on career planning, individual

development efforts with training and development programs. Most often this match is not done, the

organizations paying a differential attention to its employees, planning career of the high

performance individuals with greater opportunities for promotion and not taking into account the

performance potential employees

The HR dept considers 3 issues when it comes to career planning

1. organization members should be recognized and treated as individuals with needs,

desires and unique skills;

2. individuals are more motivated in an organization that matches their aspirations;

3. individuals may develop, change and discover new courses of action if they are

shown exactly the opportunities or if they are encouraged and guided.

The Models of Career planning:

“Chance and luck” model : This model is that employee, to get the desired position, is based only on

luck. He must be persevering and always be in place at the right time.

“Organization knows best” model. The model is based on the fact that the employee is moved from

one job to another according to the needs. This model is supported mainly by young employees, who

are dependent on adults forall the views, and less than adults employees.

“self – oriented” model. This model provides importance to the individuals; the employees are

establishing their own development during their career, while having assistance too.

Fig:3 Career planning process

Promotion policy of employees at Valeo :

For employees at the levels of Manager, Deputy Manager and Engineer, the criterion would be

knowledge, competence and experience.

For employees at the levels of Laborers, housekeeping staffers the criterion would be experience and

competence.

Training Measures:

The following are the various training programs given for the employees:

1. ISO Training

2. Training on Managerial Skills

3. Supervisor Skills

4. Training on Hygienic conditions

5. Fire Fighting

6. Safety measures and training according to Annual Calendar

Systems followed for the purchase of materials:

1. Two-bin System

2. Kanban system

3. MTO

4. MRP

Two-bin system:

Two bin system is used for the material control. It is that technique of material control in which we

have two bins, one is used for in use minimum stock and second bin is used for reserve stock or to

keep the remaining quantity of material.It is a trigger based system.

Kanban systems:

 It is a scheduling system that helps determine what to produce, when to produce it, and how much to

produce. A Kanban system is a means to achieve Just-in-time (JIT) production. It works on the basis

that each process on a production line pulls just the number and type of components the process

requires, at just the right time. The mechanism used is a Kanban card. This is usually a physical card

but other devices can be used. Two kinds of Kanban cards are mainly used:

A Withdrawal Kanban - specifies the kind and quantity of product which a manufacturing process

should withdraw from a preceding process. The withdrawal Kanban illustrated (right) shows that the

preceding process which makes this part is forging, and the person carrying this Kanban from the

subsequent process must go to position B-2 of the forging department to withdraw drive pinions.

Each box of drive pinions contains 20 units and the shape of the box is `B'. This Kanban is the 4th of

8 issued. The item back number is an abbreviation of the item.

A Production-ordering Kanban - specifies the kind and quantity of product which the preceding

process must produce. The one illustrated (right) shows that the machining process SB-8 must

produce the crankshaft for the car type SX50BC-150. The crankshaft produced should be placed at

store F26-18. The production-ordering Kanban is often called an in-process Kanban or simply a

production Kanban.

Make-To-Order Systems :

 Otherwise known as BTO (build-to-order systems) It is a Demand driven production approach where

a product is scheduled and built in response to a confirmed order received for it from a final customer.

The final customer refers to a known individual owner and excludes all orders by the original

equipment manufacturer (OEM), national sales companies (NSC), dealers or point of sales, bulk

orders or other intermediaries in the supply chain. BTO excludes the order amendment function,

whereby forecast orders in the pipeline are amended to customer requirements, as this is seen as

another level of sophistication for a build to stock (BTS) system (also known as build to forecast

(BTF)).

Materials per Requirement:

Valeo uses Materials per Requirement method for purchasing of materials. Material requirements

planning (MRP) is a production planning and inventory control system used

to manage manufacturing processes. Most MRP systems are software-based, while it is possible to

conduct MRP by hand as well.

An MRP system is intended to simultaneously meet three objectives:

Ensure materials are available for production and products are available for delivery to customers.

Maintain the lowest possible material and product levels in store

Plan manufacturing activities, delivery schedules and purchasing activities.

The basic function of MRP system includes inventory control, bill of material processing and

elementary scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan

manufacturing, purchasing and delivering activities.

HRD Measures: HR performance measures are often used in order for an employer to keep track of

the development that has been going on over all the employees in a certain department. This also

includes the health and the staffing as well as the selection performance. From here, the employer will

be able to determine the levels for the recognition and reward

there are four areas here that are targeted in order for the company to get results that are accurate and

required. These are the development on the people area, the rewards and recognition, well being of the

employees and the recruitment and the collection. These four will drive a company towards its goals

when these aspects are well taken care of.

HR Metrics:

The most widely used HR metrics are typically concerned with employee attitudes, employee

turnover, employee skill levels, as well as outsourcing costs, service center operations, the number

HR transactions processed, staffing process, training programs utilization and effectiveness, and

promotions. These measurements are employed by 25 to 75% of all business organizations.

Each metric contains 2 to 5 performance indicators. For instance, “employee attitudes” metric

includes the following indicators: Job Contentment (the percentage of employees satisfied with their

job), and Manager Contentment (the percentage of employees satisfied with their manager).

“Employee turnover” metric generally include such indicators, as Cost per Hire (calculation of

advertising, agency fees, employee referrals, relocation, recruiter pay and benefits costs and the

number of hires), Turnover Cost (calculation of termination, new hire, vacancy and learning curve

costs), Turnover Rate (rate of the employees leaving an organization), Time to Fill (the period from

job requisition approval to new hire start date), Length of Employment (this indicator considers the

job title, department, etc.).

“Recruiting” metric includes Vacant Period (number of overall days the positions were vacant), New

Hires Performance Appraisal (average performance appraisal of new hires, compared to previous

period), Manager Satisfaction (according to the survey of hiring managers, compared to previous

period), Turnover Rates of New Hires (during a specified period), Financial Impact of Bad Hire

(according to turnover cost and cost per hire).

“Retention” metric includes Overall Employee Turnover, especially in the key positions, Preventable

Turnover (this indicator considers the reasons the employee left the organizations and what measures

may be taken to prevent it), Diversity Turnover (turnover rate in professional, managerial, and

technical positions), Financial Impact of Employee Turnover.

“Training and Development” metric includes Learning and Growth Opportunities (percentage of

employees who are satisfied with the learning and growth opportunities in the organization), On-the-

job learning Contentment (percentage of employees who are satisfied with on-the-job learning, project

assignments for growth and development, and job rotations), Opportunities for New Hires (percentage

of employees who report training opportunities among the top three reasons they accepted the job).

Although most organizations use similar set of HR measurements, however, even common metrics

don't always include standard components. For instance, a common “cost per hire” metric may

contain different expense categories, such as advertising, online services, background checks and

recruiter costs. Recruiting and staffing metrics may also comprise various aspects. For instance,

organizations usually measure “college recruiting” by analyzing the source of organization

newcomers and their progress at the workplace.

HR measurements have significant implications for all areas of the business performance. For

instance, employee attitudes and turnover metrics are reported to have key influence on decision

making in the organization.

Welfare Measures taken at Valeo:

1. Canteen Facilities

2. Uniforms

3. Safety shoes

4. Education loan of about 20,000 for the labourers

5. Ayudha pooja gift

6. Medical loan

7. Transport facilties

Manpower planning:

Manpower Planning which is also called as Human Resource Planning consists of putting right

number of people, right kind of people at the right place, right time, doing the right things for which

they are suited for the achievement of goals of the organization. Human Resource Planning has got an

important place in the arena of industrialization. Human Resource Planning has to be a systems

approach and is carried out in a set procedure. The procedure is as follows:

1. Analysing the current manpower inventory

2. Making future manpower forecasts

3. Developing employment programmes

4. Design training programmes

Important points to be noted: Understaffing loses the business economies of scale and

specialization, orders, customers and profits.

Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate because of

modern legislation in respect of redundancy payments, consultation, minimum periods of

notice, etc. Very importantly, overstaffing reduces the competitive efficiency of the business.

Planning staff levels requires that an assessment of present and future needs of the

organization be compared with present resources and future predicted resources. Appropriate

steps then be planned to bring demand and supply into balance.

Thus the first step is to take a 'satellite picture' of the existing workforce profile (numbers,

skills, ages, flexibility, gender, experience, forecast capabilities, character, potential, etc. of

existing employees) and then to adjust this for 1, 3 and 10 years ahead by amendments for normal

turnover, planned staff movements, retirements, etc, in line with the business plan for the

corresponding time frames.

.Future staffing needs will derive from:

Sales and production forecasts

The effects of technological change on task needs

Variations in the efficiency, productivity, flexibility of labor as a result of training, work

study, organizational change, new motivations, etc.

Changes in employment practices (e.g. use of subcontractors or agency staffs, hiving-off

tasks, buying in, substitution, etc.)

Variations, which respond to new legislation, e.g. payroll taxes or their abolition, new health

and safety requirements

Changes in Government policies (investment incentives, regional or trade grants, etc.)

Steps in Manpower Planning

Analysing the current manpower inventory- Before a manager makes forecast of future manpower,

the current manpower status has to be analysed. For this the following things have to be noted-

Type of organization

Number of departments

Number and quantity of such departments

Employees in these work units

Once these factors are registered by a manager, he goes for the future forecasting.

Making future manpower forecasts- Once the factors affecting the future manpower forecasts are

known, planning can be done for the future manpower requirements in several work units.

The Manpower forecasting techniques commonly employed by the organizations are as follows:

Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique.

Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends),

indexation (using base year as basis), and statistical analysis (central tendency measure).

Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a

division.

Work Force Analysis: Whenever production and time period has to be analysed, due allowances have

to be made for getting net manpower requirements.

Other methods: Several Mathematical models, with the aid of computers are used to forecast

manpower needs, like budget and planning analysis, regression, new venture analysis.

Developing employment programmes- Once the current inventory is compared with future forecasts,

the employment programmes can be framed and developed accordingly, which will include

recruitment, selection procedures and placement plans.

Design training programmes- These will be based upon extent of diversification, expansion plans,

development programmes, etc. Training programmes depend upon the extent of improvement in

technology and advancement to take place. It is also done to improve upon the skills, capabilities,

knowledge of the workers.

Performance appraisal system At Valeo:

The performance appraisal system in Valeo is based on key result activities (KRA), which is being

fixed by the HOD of the concerned Departments. The Performance appraisal system in valeo is open.

An open appraisal system would be in such a way that the employee work would be rated both by

appraise and the head of the Department and will be asked to rate for out of five and the average

would be considered for the appraisal.

Financial highlights of the organisation :

Total amount of employees : 58,000 , total presence : 27 countries , 109 production sites , 38

development centres , 20 research centres , 10 distribution centres , 5.6% of sales dedicated to R&D.

Sales by Business Groups:

Powertrain systems: 28 %

Thermal systems: 30%

Comfort and driving Assistance systems: 17 %

Visibility systems: 24 %

Others: 1%

Sales by region:

South America : 8 %

North America : 13 %

Asia and others : 19 %

The product portfolios concentration lies on Cars, Trucks, tractors and 3-wheelers segments.

Valeo clutch private limited reported a growth rate of 14% for the year 2011-2012 as against 9% for

the previous fiscal year, while the entire Automotive industry reported a growth of 11 %. Major

proportions coming from Maruti and Tata.

The Passenger car Segment constitutes about 47 % of sales while the Tractors and trucks constitute

about 44% of sales while the remaining 9 % coming from 3-wheeler segment.

Sales in 2010 : 257 Crores.

Sales in 2011: 293 Crores.

From 2010 to 2012 the business turnover saw a very good rise from 40 Million Euros to 160 Million

Euros.

Future plans for growth of the Organisation:

1. Integration :

A fully completed integrated plant capable of producing the entire clutch set is coming in

Oragadam near Chennai.

2. Rebuild team :

Strengthen the entire team by giving inhouse training.

3. Cost control :

Cost cutting in in-house by concentrating on process quality efficiency.

4. Quality improvement to Global standards :

Enhancing the design facilites and manufacturing facilties.

5. Eyeing for New Businesses :

Eyeing for New businesses with OEM manufactures.

Views of Managers at various levels and Non-managerial staff :

A sample employee feedback survey has been taken with the Asst Manager industrial relations, Asst

Manager , production quality And Asst Manager ,production planning and control to understand the

average concerns and the views of the employees

Some important observations and inferences:

All the three agreed and are satisfied when it comes to having a voice in major decisions and in-house

training and the environment and the treatment of employees .

2 of 3 people said the employee training program can be very much improved.

A company picnic and stress busting activities which can be sports ,a party is not at encouraged.

All the 5 people agreed to have an improvement in Education Assistance and Bereavement pay.

3 of 5 employees said the Operator work culture has to be improved and 2 of 5 employees said the 5S

procedures need to be effectively practised.

The best about working for the company is that the company is an MNC and the All the five

employees believe that Valeo will thrive and has very good future prospects.

Advantages of the Organisation Structure :

The functional structure at Valeo helps the members of each group to become more specialized and

productive and creates opportunities for them to continuously learn and improve through their

interactions with other group members.

Second, since the members of each functional group are brought together and linked by their common

skills, education and training, it is easier for them to supervise one another and control the activities

and behavior of all of the members of the group.

Third, the consistent interaction and collaboration among group members ultimately leads to a team

orientation that makes the group more effective in tackling and executing projects.

Finally, the functional structure at Valeo facilitates segregation of company assets and resources into

the areas that are most important for the company’s success and thus makes it easier for senior

management to identify, manage and control resource deployment during a time when the company is

growing rapidly and adding new resources quickly.

Drawbacks of the Organisation structure:

1. Operators work culture

2. ineffective in-house training

3. Transportation costs , freight costs due to the Assembly and child parts manufacturing plant

present at two different places having a distance of 35 kilometres between them.

4. Occasional communication problems between the various functional groups.

5. Sometimes it is difficult for senior management to identify and measure the contribution that

each employee and functional group is making to the necessary activities of the company and

the pursuit of the strategic goals and objectives set by the company leadership.

6. Collaboration and communication issues also one of the main reasons for union problems and

this is certainly a distraction for the top management from concentrating on high-level issues.

Recommendations to overcome the drawbacks :

1. The new integrated plant which will soon come in Oragadam has both child parts and

assembly manufacturing facilities. This will help in reducing the transporation and fright costs

and also could help in delivering the products as per scheduled.

2. The top-level management is aleady in action to rebuild the team to give the operators and

labourers good effective in-house training.

3. Company picnics and parties have to be encouraged which will lead to a greater

understanding and less communication problems among different groups.

4. The operator work culture have to be studied and efforts have to be made to make them more

organised.

5. 5S procedures of Sorting , Setting the Workplace , Shining the Work area Standardising and

Sustaining have to given more importance and Subsequent training have to be given for the

employees so that they understand the benefits of working in organised manner.

6. Since Chennai is hot most of the times, the labourers and operators find solace in coming and

getting refreshed in the Air-conditioned reception hall. Small refresh rooms can be given to

the employees

7. And because of the heat the employees suffer from bad-odour emanating from their bodies

and this definitely affect the moods of the employees which in turn affects the work progress.

Deodorant sprays can also given to them so these small changes can help in making the

employees work effectively and in an organised manner.

Customers of Valeo Clutch private limited :

Car segment :

Tata motors , Hyndai , Maruti and Ford

Tractors segment :

TAFE and Mahidra

Trucks:

Ashok Leyland , Tata motors , Mahindra

3-Wheeler segment :

Manhindra & Mahindra and Greaves.