KRISTU JAYANTI COLLEGE

AN ORGANIZATION STUDY : MRF

ARUN JOSEPH GEORGE

AN ORGANIZATION STUDY : MRF

DECLARATION
I, Arun Joseph George do hereby declare that this report titled
AN ORGANIZATIONAL STUDY AT MRF TYRES Ltd.
conducted at MRF Tyres Ltd.Kottayam, in partial fulfillment of the requirement
for the award of the degree of MBA has done by me under the guidance of Dr.
Pious Thomas, MBA Co-ordinator, Kristu Jayanti College, Bangalore.I assure
that this has not been submitted by me fully or partially for the award of any other
degree, diploma or other recognition

COMPANY PROFILE
COMPANY PROFILE
Just one year before the attainment of independence by our country in the
year 1946, a youngentrepreneur Mr.K.M.Mammen Mappillai opened a small toy
balloon manufacturing unit shed
atT h i r u v o t t i y u r , M a d r a s ( n o w C h e n n a i ) . O v e r t h e y e a r i t s t a r t e d m a
n u f a c t u r i n g a v a r i e t y o f products.
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AN ORGANIZATION STUDY : MRF

MRF Ltd. was incorporated towards the end of 1960 and was converted
into a public limitedc o m p a n y i n 1 9 6 1 . A d d i t i o n a l s h a r e s w e r e o ff e r e d
t o t h e p u b l i c , i n o r d e r t o r a i s e f u n d f o r manufacturing automotive
tyres and tubes in collaboration with US based Mansfi eld Tyre and Rubber
Co. Since then it has emerged as the largest tyre manufacturer in India and 13 th
largest inthe world with a turnover of Rs.5000 crores and also built capacity of six
million tyres from
Six p r o d u c t i o n f a c i l i t i e s i n I n d i a . W i t h a p r o fi t m a r g i n o f a p p r
o x i m a t e l y 1 . 3 % i n t h e t y r e manufacturing sector, MRF holds more than
20% of the market share. The company caters to allvehicular segments from
commercial vehicles and passenger cars to 2-3 wheelers and tractorsand
has a strong presence in both radial and cross ply segments. It hosts 68
sales centers,
2500d i s t r i b u t o r s a n d e x p o r t s t o o v e r 7 5 c o u n t r i e s : A s t a n d i n g t e s t i
m o n y o f M R F ` s o u t s t a n d i n g leadership.
MRF enjoys of manufacturing the largest range of tyres in India and it has
the highest brand preference for superior quality, appearance and wears ability. It
manufactures the largest range of t y r e s i n t h e c o u n t r y a n d i s t h e m a r k e t

l e a d e r w i t h t h e l a r g e s t m a r k e t s h a r e i n a l m o s t e v e r y segment of the
tyre industry.M R F L t d . i s t h e fi r s t I n d i a n c o m p a n y t o e x p o r t t y r e s t o
t h e U S , t h e v e r y b i r t h p l a c e o f t y r e technology. It is the fi rst company
in India to manufacture and market Nylon tyres passenger tyres
commercially. The company was given the title of most ethical company
by 'BusinessWorld' magazine after a survey conducted in 1999.VISIONMRF TYRES
Ltd. has a vision- a vision to be a significant player in the global tyre industry anda
brand of choice providing customer delight and enhanced stakeholder
value. And in order tomake empower vision, they have strived to meet the needs
of the customers through
:
To be most admired Tyre Brand Globally by 2010.

Error- free service delivery

Innovative products and services

If the words are considered as symbols of approval and of gratitude then the
following words play theheralding role of expressing gratitude. A great time and
much effort have gone into developing thisorganisation study.First and Foremost,
I wish to express my sincere thanks to the Almighty God for giving
mestrength and guidance in completing this project. I also wish to express
my sincere thanks and heartfeltgratitude to Brigadier Ashok Kumar, our
esteemed Director,DC School Of Management And Technologyfor providing me
with such an opportunity.I am especially thankful to my guide Mr. Balakrishnan
Menon Sir, for his esteemed guidance,expert advice and for inspiring
us throughout the phases of this project. His unfailing guidance
andc o n t i n u o u s s u p p o r t r e n d e r e d a t e v e r y s t a g e o f m y w o r k h a s h e l
p e d m e t o c o m p l e t e m y e n d e a v o r successfully.I proudly take this
opportunity to express my thanks to
Ms.Premela.P.Skariah
, Assistant Manager,Welfare, MRF Ltd Kottayam for permitting me to conduct my
study.I express my thanks to Ms.Deepthi Mol K.M, MRF Ltd,Kottayam for her support
and help.I am thankful to all the offi cials of MRF Ltd, Kottayam for
providing a good environment that helped me to complete this study within the
specified time.Above all, I thank almighty God, my family, friends and others for
their supportARUN K MATHEW

ORGANISATION
INTRODUCTIONAbout The Tyre Industry,
The tyre industries in India come into existence with establishment of trading
outlets by U S based FireStone Tyre and Company in1922 and followed by
Dunlop Rubber Company in 1926.The Indian Tyre industry has witnessed a
Cumulative Annual Growth Rate (CAGR) 7.7% over the last decade.
Economicexpansion, investments and road developments have all contributed to
thisIncrease in demand for vehicles. This has helped the growth in the tyre industry.
The tyre industry is themajor consumer of the domestic rubber production.
The tyre industry is mainly dominated by organized sector; the unorganized
sector holds in bicycle tyres. The major players in the organized sector consist
of MRF, Apollo tyres, ceat, and J K Industries, which account of the 63% of the
organized tyre market.
About The Company
MRF Ltd was established in the year 1946. The company name is an acronym for
Madras Rubber Factory. It was
started by KM Mammen Mappillai at Thiruvottiyur Chennai. In the y
e a r 1 9 5 1 , t h e company took up the manufacture of trade rubber. MRF Ltd was
incorporated towards the end of 1960 andw a s c o n v e r t e d i n t o P u b l i c
Limited Company in 1961. Since then it has emerged as the
l a r g e s t t y r e manufacturer in India and 12
th
largest in the world with turnover of Rs 5800 Cr. with capacity of six milliontyres
from six production units in India. With a profit margin of 1.3% in tyre manufacturing
sector, MRFhold 24% of market share. MRF tyres are rolled out of six interdependent
facilities, which are built over 450 acres and with over 15,000 dedicated
people. MRF has over 3000 strong dealer network with 180 offices. What this
means is that the company boasts of the largest range of tyres in India - from heavy
dutytruck tyres to 2-wheeler tyres, The MRF Pace Foundation is
synonymous with training and teaching the world's best fast bowlers.

Rubber is an organic substance from natural resources or synthesized artificially

which has the prescribed properties of extensibility, strechability and toughness.
The scientific name of Rubber isHeaven Brasiliensis. It acquired this name
because of its ability to erase. Nearly 85% of the plantations are in the hand of
small farmers. The industry pays highest wages toits workers more than those who
can earn from other plantations. A rubber tree can help tapregularly throughout the
tree remains productive for 30 to 40 years. Indians per hector yield of rubber is the
highest in the world (about 1500 kg) The natural rubber from just 25%of the world
requirements the rest is made up with syntheticrubber items from petroleum. But
natural rubber is still essential for certain products-nearly50%to60% of auto and
track tyres is natural rubber where synthetic rubber is used for productionof tubes.
The Indian Tyre Industry
The foreign companies dominated the Indian tyre industry till 1960; however in the
latter part of 60s andearly 70s the Indian industrial, Entrepreneurs made a stylish
entry into the market alongside collaborationwith the automobile sector foundation

with in the country. The tyre industry saw the entry of players andwith the winds
and liberation blowing a midst hue and cry, swept the entire land in 1992 and
brought aboutthe role of joint ventures within the industry.Ever since the fi rst
Indian tyre company, Dunlop Rubber Company (Indian) was incorporated
in1926, the type industry has grown rapidly and today it is an Rs.9000 crore
industry. The Indian tyre industry produce the complete range of tyres
required by the Indian automotive industry, except for aero tyres andsome
specialized tyres. Domestic manufactures produce for trucks, buses, passenger
cars, jeeps, light trucks,tractors (front, rear, and trailer), animal drawn vehicles,
scooters, motorcycle, mopeds, and bicycles and off the road vehicle and special
defense vehicle.Indian has 2.61 lakh vill ages, connected by 6.23 lakh kms to metal
led roads and 9.81 lakhs kms of unmetalled roads. These villages are linked to small
town and cities. There exists a vast potential for the tyreindustry in India. The
fortune of the tyre industry depends on the agricultural and industrial performance
of
ORGANISATION STUDY Page 15

the economy, the transportation needs and the production of vehicles.

Hence, this is a very sensitive industry, which has to adapt itself to a highly
volatile environment.While the tyre industry is mainly dominated by the organized
sector, the unorganized sector holdsaway in bicycle tyres. The major players in the
organized tyre segment consist of MRF Tyres, Apollo Tyres,Ceat, and Jk Industries,
which account for 63 percent of the organized tyre market. The other key
playersinclude Modi Rubber, Kesoram industries, and Goodyear India, with 11
percent, 7 percent and 6 percentrespectively. Dunlop, Falcon, lyre Corporation of
India Limited (TCIL), TVS Srichakra, Metro tyres andBal Krishna Tyres are some
of the other players in the industry.The Indian tyre industry evolves itself around
some silent features like:

Adaptability

Innovation

Export

Technology progression

Wide product range for divers usage.The Original Indian tyre market can
be categorized into three. They are;

equipment market

Replacement market

Export marketMRF, the largest tyre manufacture in the country, has strong brand
equity. While it rules supreme inthe industry, other players have created richest
markets of their own. The tyre industry is a major consumer of the domestic rubber
production. Natural rubber constitutes 80% of the material content in Indian tyres.
ORGANISATION STUDY Page 16

Synthetic rubber constitutes only 20% of the rubber content of the tyre in
India. Worldwide, the ratio of natural rubber to synthetic rubber is 30:70. Apart
from natural and synthetic rubber, rubber chemical arealso widely used in tyres.
Most of the RSS- 4 grade natural rubber required by the Indian tyre industry
isdomestically sourced, with only a marginal amount being imported. This is an
advantage for the industry,since natural rubber constitutes 25% of the total raw
material cost of the tyres.The two types of synthetic rubber used in tyres are
Poly Butadiene Rubber (PBR) and styreneButadiene Rubber (SBR). The
former is used in most of the tyres, while the latter is mainly used in
theradials for passenger cars. Synthetic rubber accounts for 14% of the raw
material cost. Unlike in the case of natural rubber, India imports 60% of its synthetic
rubber requirements.On the export front, the Indian tyre companies need to explore
newer markets as the existing marketfor bias truck tyre which accounts for about
45% of the total export volume is nearing saturation. This apart,with rationalization
caching up in the foreign markets, the Indian tyre companies need to graduate to
radialtyres so as to protect their share in the export market.At present,
radicalization of tyre is low in India except of the car tyre market where 95% of the
tyresare radicalized while cross ply tyres is preferred in all other categories. Cross
ply tyres are preferred owingto poor road conditions, overloading in trucks, higher
cost of radial tyres and poor awareness among the tyreusers in the countr
Globally, the original Equipment Manufacturer segment constitutes only
30 percent of the tyre market,exports 10 percent and the balance
from the replacement market. In India, the scenario
is quite diff erent. Nearly 85 percent of the total tyre demand in the country
is for replacement. This anomaly has placed theretreaders in a better position than
the tyre manufacturers. Retreading is looming over the tyre industry as acolossal
threat. The Coimbatore based Elgi Tyres and tread Ltd., the largest retreader in
India, is giving thetyre barons sleepless nights.Retreading is replacing the worn-out
tread of the old tyre with a new one. The popularity of retreading stemsfrom the fact
that it costs only 20 percent of a new tyre but increases its life by 70 percent to 80
percent.Most of the transporters in India retread their tyres twice during its lifetime,
while a few fleet owners evenretread thrice. In their zealousness to economize
costs, they overlook the reality that retreading reduces thequality of the tyre. It is
highly popular in the south unlike in the north where the transporters overload
their trucks and have to ply their vehicles in a rough terrain, an environment in
which buying a new tyre is the best option.
THREATS
The industry, already bogged by over capacity, is facing a severe threat of dumping
of cheap tyres by SouthKorea. Under the Bangkok agreement, signed between India
and South Korea in 1976, import of tyres fromthe latter into India would attract a
concessional duty of 33 percent as against the normal tariff of 40 percent.Two
years ago, the industry estimated the growth in the passenger car radial
demand at 20 percent per annum. However, the auto recession has hit them
badly. But South Korea made a killing by dumping cheapcar radial tyres and walked
away with 11 percent of the tyre market.Another threat to the industry is the price
of its raw materials, most of which are petroleum by-products.Carbon, synthetic

rubber and nylon tyre cord are off shoots of petrochemicals. Thus, the
future of theindustry will swing with the supply of crude oil.The biggest threat,
however, is yet to fully materialize. It will be from global majors like Bridgestone
andMichelin, which control 36 percent of the global tyre market. These players have
set up their bases in South-east Asia and the slump of the markets in this region
coupled with the vast growth potential of the Indianmarket, is beckoning them
towards India.Bridgestone has tied up with ACC for a 100 percent radial tyre
unit and Michelin is also marketing its products through retail outlets. The
industry is driven more by volumes than by margins and each of the big
ORGANISATION STUDY Page 20

five in the global tyre industry Continental, Michelin, Goodyear India, Pirelli and
Bridgestone generate anannual tyre production equivalent to the total demand of
the Indian market.
Major Market Player s and Their Market Share
L a s t
P r i c e M a r k e t
C a p .
(Rs. cr.)
SalesTurnover Net ProfitTotal
AssetsApolloTyres7
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Some of the major players in
the Indian tyre industry are MRF, Ceat, JK industries, Apollo tyres,Bridgestone India,
Goodyear India, Falcon Tyres and TVS Srichakra.
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ORGANISATION STUDY Page 21

A
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The prospectus of tyre exports from India appears healthy; following efforts by
Indian companiesto increasing entering into out sourcing agreement with tyre
producers in South-east Asia, Eastern Europeand 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 tyre from India to developing countries is
because of the fact thatdeveloping 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 indu
stry, given that domestic prices are lower than international tyre prices.In the
domestic market, tyre manufacturers are expected to increasingly focus
on expanding their dealershipnetworks and explore possibilities of tie-ups
among themselves to penetrate the growing customer base. They are also
likely to pursue innovative measure to improve customer awareness.The
consolidation of the Indian tyre industry is likely to continue in the coming
years through mergersamong existing players. The industry is likely to expand
through a combination of organic and inorganicgrowth. While organic growth
would come from raising effi ciency levels, inorganic growth would
beachieved through alliances and mergers & acquisitions
Present
It is also involved in a range of other activities via subsidiaries. Funskool India, a
Joint venture betweenHasbro and MRF, is a major toy manufacturing company in the
country. MF Pretreads offers world class procured tyre retreading service, and MRF
Muscleflex is involved in making conveyor belts. It is presentlyunder the leadership
of Vinoo Mammen, son of the late K.M. Mermen Mapp illai
POLICIES OF MRF
1 . Q U A L I T Y P O L I C Y The main quality objective of the company is to
maintain market leadership through continuousquality performance
2 . S A F E T Y P O L I C Y Safety and health of the employees shall be the first
priority of the company. It is the responsibilityof each and every individual in the
organisation, regardless of the position he occupies, to ensurethat everyone in
the factory returns home without any injury. The company off ers
ACCIDENTFREE SAFE PRODUCTION not only in letter but also in spirit, for
the benefi t of one and allthrough this policy.3 . E N V I R O N M E N T
P O L I C Y The environment Policy of MRF LTD. is
to manufacture the companys products in an environmentally friendly and safe
manner

.This is to maintain our products in an environmentally friendly and safe manner. To

achieve this goal, allthe MRF plants, together with corporate office shall

Minimize the impact of our manufacturing activities on the environment especially

the air,water, and soil.

Comply with all applicable regulatory requirements

ORGANISATION STUDY Page 32

Develop environmental performance evaluation procedures for continuous

monitoring

Optimizes the consumption of resources (water, energy and raw materials) by

minimizingwastage, recovering and recycling where ever possible.

Up gradation of the machinery and pollution control equipment when required

Train all our employees to perform their activities in an environmentally

responsible landsafe manner
At the p l an t l e ve l , the re sp e cti ve Se n i or Ge n e ral
M a n a g e r s / G e n e r a l M a n a g e r s a r e a s s i g n e d t h e responsibility of carrying
out the environmental system by collaborating with corporate
functions..4 . T R A I N I N G P O L I C Y The training policy of MRF LTD. is
to provide and develop knowledge, skills and behavior of thecompanys employees
to continuously improve their performance
.MRF plants along the corporate office join hands to accomplish the following.

Competency evaluations conducted each year identify and document the training
needs of the employees.

Design and publish the training calendar and schedule.

Monitor and evaluate training process and out come to asses and to decide the next
trainingcycle requirement.

Collaboration of the activities along with the activities of human resource

department plants.
MANAGEMENT
The success or failure of a company is determined by the performance of its
management. It has to playa major role in functions such as decision making.
Management of MRF LTD. is lead by
RGANISATION STUDY Page 33

Mr. K.M.Mammen, son of Mr. Mammen Mappillai who started this company almost
60 years ago. BOARD OF DIRECTORSK.M. Mammen Chairman & Managing
Director Arun Mammen Joint Managing Director K.M. Philip Whole Time

Director Dr. K.C.Mammen Director C.G.Rangabashyam Director K.D. Parakh

Director Ashok Jacob Director S. Nandagopal Director V. Shridhar Director Vijay
R. Kiriloskar Director N. Kumar Director Ranjith I. Jesudasen Director D.M.
Choksi SecretaryINDIAN COMPETITORS OF MRF
LTD.1 . C E A T 2 . A P O L L O 3 . J
K
T Y R E S 4 . M O D
I 5 . G O O D Y E A R
ORGANISATION STUDY Page 34

6 . D U N L O P 7.BRIDGESTONE.
ORGANISATIONAL GOAL
To maintain global standards through continuous improvement in the quality of
products and services inorder to maintain market leadership
INTERNATIONAL CERTIFICATIONS
The Kottayam unit of MRF LTD. has got four different categories of International
certifications from therespected authorities. They are as follows:1 . I S O 9 0 0 1 2 0 0 0 Q U A L I T Y M A N A G E M E N T S Y S T E M This is the quality management
system and quality assurance standard brought into force by
theInternational Standard Organisation (ISO), a certifi cation comprising of
the state of the worldfacility which aims at the standardization of the quality of
the products and services to cater to thecomplete satisfaction of the
customer.2.ISO 14001-1996 ENVIRONMENT MANAGEMENT SYSTEMThis is
the quality assurance standard prepared for the automobile and related companies.
Throughthis certification, MRF LTD. is to manufacture their products in an
environment friendly and safemanner.3 . I S O T S : 1 6 9 4 9 Up gradation of
ISO 9000 from 1 July 2000. It is more customers oriented and works in plan-docheck-act policy. TS 16949 is awarded for certification of technical standards in
this industry.4 . C Q C
ORGANISATION STUDY Page 42

KOTTAYAM UNIT FACTS AND FIGURES

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ORGANISATION STUDY Page 43

Work is carried out at the company 24 hours a day. There are three shifts
in a day consisting of eight hours each. Besides those shifts there is also a
general shift for the management staff of the company.The shift timings are as
follows:F
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MARKETING
Tyre and tyre related products are sold under the brand mane MRF, and
distributed in domesticmarkets through sales offi ces, dealers, and
franchisees. Conveyor Belts are sold under the brand name MRF Muscle
Flex to customers directly from Conveyor Belting plant at Arkonam.The major OEM
(Original Equipment Manufactures) customers of MRF tyre and Re Ford India
Ltd.,General Motors India Ltd., Maruti, Hindustan Motors, TATA Motors, Ashok
Leyland,Honda Siel, Hero Honda, Bajaj, LML Ltd, Honda Motors & Scooters
India Ltd., Mahindra & Mahindra,Eicher Motors, New Holland Volvo,
etc. The major Conveyor Belting customers are Cement/ Steel /Fertilizer /
Thermal Power plants, mines and ports.MRF exports tyres and tubes through
authorized agents representing countries such as USA, Canada,Mexico, Brazil, Chile,
Australia, Philippines, Bangladesh, Sri Lanka, Korea, Egypt, Nigeria, South
Africa,Ghana, Kenya, Mauritius, UAE, Afghanistan, Pakistan, Iran, Iraq, Bahrain,Qatar, Oman, Lebanon, Greece,Turkey, Malta, UK, Uzbekistan etc. MRF conveyor
belts are exported to Australia, South Africa, Europe,Canada, Middle East
etDEPARTMENTS

MRF LTD gives an insight about the functioning of the different departments. Each
department is headed by the general manager who possesses expertise, knowledge
in the area under his supervision. There alwaysexists an ergonomic atmosphere
which is often made possible by the close interaction between all members
ORGANISATION STUDY Page 46

in each department. The top management moulds the strategies and policies that
make sure that the middlemanagement implements them. Weekly
interdepartmental meeting aims at bringing coordination betweenthe different
departments. Open forums are held once in a week in all plants where the
employees can raisetheir concerns, suggestions etcThe various departments
headed at MRF Ltd Kottayam can be enlisted below;

Production department

Production Planning Department

Quality Assurance Department

Technical Engineering Department

Plant Purchase Department

Raw materials Store Department

Shipping (dispatch) Department

Accounts Department

Industrial Engineering Department

Safety Department

Security Department

Human Resource Department

1. PRODUCTION DEPARTMENT
Production is the primary function of the company and hence all other functions are
support functions.Production is carried out in four plants at kottayam unit.They are
ORGANISATION STUDY Page 47

Tube plant plant 1

Tyre plant plant 2

Mixing plant plant 3

PCTR plant plant 4

The following are the main functions of production department.

Planning for production processEvery month, a monthly plan is given to the plant by
central planning. Based on the monthly plan- planning department will prepare a
simulation plan by dividing the month into 3 segmentsof 10 day each.

Material indent and receipt

The daily requirement of raw material is calculated at each plant
after considering theavailable inventory and the schedule production
for the next day raw material indented ismade to raw material store.

ProcessingProcessing is carried out per the technical specification.

Product identification and traceability

Inspection
C

c)Stationery and miscellaneous items (items which dont come

u n d e r t h e p r e v i e w o f r a w materials)d ) S e r v i c e s ( Re p a i r i n g o f
machinery)
Procedure followed for purchase
Any person who needs a material can make a purchase requision but it has to be
authorized by thedepartment head. This has to be routed through engineering
store.In case of items involving capital expenditure, it should have capital
authorization number. In caseof engineering spares of non capital nature, this is not
required. Based on the indent, necessary quotationsare invited and purchase orders
are released. The copy of purchase order is sent to the supplier, intender,accounts,
stores, corporate office PEM and a file copy for plant purchase.
RAW MATERIAL STORES DEPARTMENT
Raw material stores will receive a copy of the raw material requirement for the
month prepared andsent by plant planning. This is also sent to central planning and
central purchase by plant planning. Based onthe requirement, central purchase
arranges for procurement of materials and issues a delivery schedule to the plant.
Delivery schedule is the schedule by which the supplier will release the specified
dates to the plant.Raw materials, consumables, fuel etc are received at the
factory gate in line with the delivery schedule and purchase orders. The
documents are verified to ensure that the materials are from approvedsources and
the correct quantity as is delivered.
ORGANISATION STUDY Page 59

Weighment of the load is done. Goods arrival entry is made and the load
is re-directed to theunloading point through the security department. The
unloading point is usually the raw material
godown, but sometimes the materials are unloaded at the plants where it is consum
ed. In case of fuel, oil etc it isunloaded at the storage area.At the unloading point,
visual inspection is carried out and then the materials are stored with
proper identification tags showing the primary status of the material (hold/ pending
for test).Each material has aspecified storage place and it is placed in that storage
area.Sample transfer / visual inspection report is prepared and samples are
collected for testing as per thedocumented sampling plan. The sampled bag is
identified and the sample is sent to technical department for testing .GRN (Goods
Received Note) is prepared at this point.After testing the samples, technical
department informs the test result through material release /rejection / hold note
printed at the bottom portion of the transfer /visual inspection report. Based on the
testresult ,green color sicker captioned OK is affi xed if the material is
OK, Red color sticker captioned REJECTED is affixed if the material is not fit for
use and ORANGE color sticker captioned HOLD isaffixed if it needs further tests
to arrive at a concrete decision.Materials are issued to production as per the indent
raised by production in each plant .Stock inventory and stock back to the supplier
and the cost recovered .Transferring of materials to other plants isalso monitored.
SHIPPING (DESPATCH) DEPARTMENT
Finished goods will be received from inspection/ packing area size wise, batch wise
or lot wise onthe basis of production Transfer Note. Physical verifi cation of
goods is done at the time of receipt andreceipt tags are put. Proper
storage and identifi cation of fi nished goods is the responsibility of
shippingdepartment. Finished goods will be stored size wise on pallets with
transfer slips showing the size, quantity,date of receipt etc. Tractor rear tyres .truck
tyres and such others will be stacked on floor. Stacking normsfor finished goods,
where ever specified will be followed.Shipping will publish Daily Dispatch
Simulation Plan. And copies of it will be sent to plant planning,
central planning and QAD. Daily Dispatch plan is prepared based on simulation
plan, allocation
ORGANISATION STUDY Page 60

plan and urgency as intimated by central planning /marketing, transportation

time required, availability of truck, shelf life of the product etc. Trucks are checked
before loading to ensure that damages will not occur to goods.Daily production
Receipts and transfer are fed into computer and reports are generated. Dailydetails
are transmitted to central planning /EDP/Marketing and data are consolidated for
report generationand monitoring .Dispatch report is published for every 10
day period .Non moving /slow moving items report is published monthly and
distributed to central planning ,plant planning ,QA ,plant head, marketingetc.
Shipping coordinates with central planning to get allocation for none moving and
slow moving items.Tread rubber /cushion which exceeds the shelf life of 3 months
and damaged products /tyres packed withwrong tubes will be given to
production.Statutory registers and returns as required are properly maintained and
submitted. New defectivetyres are brought for tyres for repairs from outside
godowns and inspections by central exercise authoritiesare arranged .Statutory
registers and returns as required are properly maintained and submitted

STRUCTURE OF INDUSTRIAL ENGINEERING DEPARTMENT

SAFETY DEPARTMENT
Responsibility of this department is to ensure the working ambience to all the
personnel within thefactory and the premises. The safety officer through the
mechanism of audits and subsequent reporting Feedback, builds in the safety
consciousness and the safety culture within the personnel.
ORGANISATION STUDY Page 67
Plant Industrial EngineeringManager
RecoursePanning inChargeAssistantManagerIndustrialEngineer

MRF has a well defined SAFETY AND HEALTH POLICY which is as follows. It is the
policy of our company that the SAFETY AND HEALTH of our employees
shall be our FIRST priority It is the responsibility of everyone in this organisation,
regardless of the position he occupies, toensure that everyone in the factory
returns home to his beloved ones without any injury today and
everydayWe shall observe this policy not only in letter but also in spirit and offer
ACCIDENT FREE SAFEPRODUCTION for the benefit of one and all.
Safety policy of MRF
It is the policy of the company that the safety and health of all employees shall be
given the FIRST priority.It is the responsibility of everyone in the organisation,
regardless of the position he occupies, toensure that everyone in the factory
returns home to his beloved ones without any injury today and
everyday.They shall observe this policy not only in letter but also in spirit and offer
ACCIDENT FREE SAFEPRODUCTION for the benefit of one and all.
Procedures and guidelines
Necessary procedures, rules and guide lines for the effective implementation of
this policy,
without prejudice to the statutory requirements, are formulated by Chief Safety offic
er and Plant Safety officer.T h e y w i l l a l s o r e n d e r n e c e s s a r y a d v i c e a n
d a s s i s t a n c e t o a l l m a n a g e m e n t s t a ff i n t h e e ff e c t i v e implemen
tation of these policy respective sections, plants departments and the unit as a
whole.
SECURITY DEPARTMENT
Industrial safety in the public and private sector can be defined as protection of
men, materials,machines, buildings, classified information, and the company
operations and to provide protective services
ORGANISATION STUDY Page 68

against fire, theft, damage to the company assets and the installation. Protect the
valuables of the companyas well of the employees.The main functions of security
department are:
Control over accessibility

Check against theft, pile rages

Control over the movement of personnel and materials at the gate

Checking in/out raw materials, empty vehicles, carrying fi nished goods,

vehicles carrying scrapitems etc.

Control and checks on the company hired taxes and security of bills.

Co-ordination of security duties with private security agencies and preparation of

bills.

Control and check over the entry of contract works.In case of an accident in the
factory, it is the responsibility of the security department to provide thevictim with
first aid. The security department should also take them to the appropriate place by
using theambulance if necessary. The inflow and outflow of inventory, personnel are
regulated and monitored by thesecurity department
FINDINGS, SUGGESTIONS AND CONCLUSIONFINDINGS

MRF ltd. Is the no. 1 largest tyre manufacturer in the country and the 12th largest in
the world.

MRF exports its products to more than 75 countries worldwide.

MRF is the first Indian company to export tyre to the US.

The company is providing good working environment.

M R F i s t h e fi r s t c o m p a n y i n I n d i a t h a t m a n u f a c t u r e a n d m a r k e t
N y l o n t y r e s , p a s s e n g e r t y r e s commercially.

Profit is comparatively low because of the rapid variations in the cost of the raw
materials.
SUGGESTIONS

The management must take suffi cient step to install a grievance

settlement machinery withsufficient participation of workers

Improve employee relation.

ORGANISATION STUDY Page 80

Open a show room at factory itself.

The company need to move and update itself according to new technologies in the
market to maximize quality production.

The company should utilize railways to transport its materials which would reduce
the overall logistics cost.


More attractive advertisements in Visual Media would help in Marketing

More investment has to be made in Research and Development.

ORGANISATION STUDY Page 81

CONCLUSION
M
adras
R
ubber
F
actory mobilized itself as the market leader. The strong performanceof MRF is
because of combined eff orts of management and employees. MRF
provides high quality andtechnologically superior products to its customers. The
company has the provision to find out which tyre ismanufactured by which worker.
The effective management along with successful workers is very dedicatedand is
aware of new developments taking place in the industry. There is no
compromise on the quality policy makes them King of Kings in tyre industry. If
they implement the suggestion put forward, will helpthem to improve profi t and
helpful for the workers. So the company can attain global standard
throughcontinuous improvement in the quality products and service in order to
maintain market leadership and can be the king in tyre industry for many years