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project REPORT

On
Management of working
capital
At
FEDERAL MOGUL BEARINGS INDIA LIMITED

PARWANOO HIMACHAL PRADESH

By

ANUBHAV BHATIA
Under the guidance of

Mr. Balwinder Singh Mr.Sanjeev Nanda


(Assistant Manager – HR) (Manager - HR)

SHOOLINI INSTITUTE OF LIFE SCIENCES & BUSINESS


MANAGEMENT
ACKNOWLEDGEMENT

Project is an important part of learning experience in order to have practical


knowledge of what we read in books. Project helps in breaking the gap
between the practical and theoretical knowledge. It is the supervisor or the
trainer who can help to make the most out of this golden opportunity of
getting the practical knowledge.

I would like to put forth my regardful thanks to all those who had helped me
in guiding me to get the most out of this golden opportunity to learn the most
during such a period of my project at Federal Mogul bearings India limited,
Parwanoo, H.P.

I also pay my special thanks to Mr. Sanjeev Nanda (Manager - HR), MR.
Balwinder Singh (Assistant manager-HR) and Mr. G.P. Kala ( Human
Resource Deptt.). I would like to appreciate that they gave me experience of
every cell of the company so that I get maximum.

Ahead I put my special regards to the management, workers who have always
been so supporting, loving and ready to help. I have been in close touch with
them from the beginning of my Project at Federal Mogul Bearings (India)
Limited, Parwanoo. And, I appreciate the relationship they all have developed
with me.

THANKS
Anubhav Bhatia
FMBIL-PARWANOO
INDEX

S.NO. CONTENTS

1. Introduction

1.1 Vision

1.2 Mission

1.3 Quality Policy

1.4 Environment Policy

1.5 Health & Safety Policy

1.6 About the Over taker


Company

1.7 Organization Hierarchy

2. About the Product


FMBIL-PARWANOO
COMPANY PROFILE

FMBIL is a leading automobile component manufacturer in India. Of


the 600 plus manufacturers in the country, it has been the most dynamic in
adapting to the changing environment. It is in depth knowledge of the auto
component industry and high management competence has helped it to
remain a market leader in terms of manufacturing efficiency as well as
quality control. It is guided by the well set vision backed by its philosophy
and beliefs, the vision being to be No. 1 auto component manufacturing
group in India by the year 2003 with a sales turnover of $500 million (app.
Rs. 2000 Crores) with export accounting for 30% of total sales.
FMBIL is a well-knit effort of 2500 people with over 300
professionals. It spends 2% of its sales proceeds on training and development
annually.
The group holds a majority stake in the original equipment market
(unto 60%) proving its leadership in terms of quality and technology. It has
been a supplier to the leading car manufacturers like Mercedes Benz, BMW,
Ford, Daewoo, Peugeot, Rovers, Tata, Ashok Leyland etc. The group is an
original equipment supplier to all Indian automobile manufacturers. The
group spends 2% of sales on R&D annually. Exports are to automobile
manufacturers in Germany, US, UK, Japan, Indonesia etc.
The group is a constant participant in trade fairs around the world. It also
participated in Automechanika”96 held in Frankfurt in Sept’96.In order to
maintain its supremacy in technology, the company has tie-ups with world in
various products. In the words of Mr. JOSE MARIAALAPOINT, Chairman,
Federal Mogul Bearings India Ltd, “The various collaborations will help us
upgrade our technology. To improve the acceptance of our product, we insist
that each group company should export to original equipment markets
abroad. Some of the companies have already reached their targets.”
1. INTRODUCTION
In 1979, FEDERAL MOGUL BEARINGS INDIA LIMITED formerly
GABRIEL and ANAND ENGINE COMPONENTS diversified into the
manufacture of thin wall engine bearings. The engine bearing division was
set up in collaboration with Federal Mogul Corporation, USA, and world
leaders in the thin-wall bimetal engine Parwanoo in the state of Himachal
Pradesh. From the inspection, this division has become place setter in its
fields as the only one in India to manufacture the complete range of Bimetal
Bearing, Bushes and thrust washers from the raw material stage. It has an in-
house fully equipped chemical and metallurgical laboratory to ensure that
only the best quality product will leave the plant. Its other testing facilities
include a gauge room with high precision metrological equipment’s such as
Talyrond and Surfandyer and also an engine testing dynamometer for
evaluation of bearing performance under actual conditions of fitment and
operation. A new semi automatic manufacturing facility has been added for
aluminum, tin and lead bearings. Gabriel produces Bimetal engine bearings,
thrust washers and bushes with an annual capacity of over 12 million
numbers.
Over Rs.10 million have been invested in sophisticated R&D facilities for
new product development, process improvement and indigenous equipment
design. Federal Mogul’s most modern R&D center is available on an ongoing
basis for testing of new materials, products & processes. Gabriel India’s
coordinated development efforts ensure that the changing requirements for
the new generation applications for Automotive, Industrial, Agriculture and
Railway segments are met through continual product developmental and up
gradation.
The Anand Engine Components Parwanoo H.P. has been acquired by Federal
Mogul Corporation (USA). The name and all the policies of company have
been changed. The name is changed to Federal Mogul Bearings India
Limited.
That only the quality product will leave the plant. A new semi automatic
manufacturing facility has been added for aluminum, tin and lead bearings.
Federal mogul bearing India ltd. Produces bimetals engines bearings, thrust
washers and bushes with an annual capacity of over 12 million numbers
Over Rs 10 million have been invested in sophisticated R & D facilities for
new product development, process improvement and indigenous equipment
design.
Federal mogul most modern R & D center is available on an ongoing
basis for testing of new materials, product and processes. Federal mogul
bearing India ltd. India’s coordinated development efforts ensured that the
changing requirements for the new generation’s applications for
automotive, industrial, agriculture and railway segments are met through
continual product development and up gradation.
1.1 VISION:
Be the leading supplier of filter solution in India and a global
supplier of automotive filters for both OE and Auto market
applications.
1.2 MISSION:
CUSTOMER DELIGHTS – By providing superior products on time
every time.
SHARE HOLDER DELIGHT – By providing better than market
returns on investments.
EMPLOY DELIGHT – By providing opportunity to learn contribute
and enjoy working in PIL.
1.3 QUALITY POLICY:

Committed to service and achieve customer delight by


meeting or exceeding their expectation through effective
quality management and continual improvements in: -quality,
cost, delivery, growth, and productivity.

1.4 ENVIRONMENT POLICY:

FEDERAL MOGUL BEARING INDIA LTD. is committed to


prevent the generation of waste. We believe al forms of wastes
are detrimental to the environment. We all combine with all
regulation on environment & ensure that the usages of our
products have the least known impact on the environment.
1.5 HEALTH & SAFETY POLICY:
Federal mogul bearings India Ltd. is committed to achieve and
maintains world-class health & safety standards for all its
employees. It shall be deployed through the first key of
FEDERAL MOGUL CORPORATION i.e. Health & Safety.
We all develop improve and sustain processes that will
systematically eliminate health & safety hazards.
ORGANISATION HIERARCHY
The hierarchy of the organization is made up of two grades-

MANAGEMENT GRADES: -
MG 13 SENIOR PRESIDENT
MG 12 PRESIDENT
MG 11 VICE PRESIDENT
MG 10 DIRECTOR (TECH.)
MG 09 GENERAL MANAGER
MG 08 DEPUTY GENERAL MANAGER
MG 07 SENIOR MANAGER
MG 06 MANAGER
MG 05 ASSISTANT MANAGER
MG 04 SENIOR OFFICER/ ENGINEER
MG 03 OFFICER/ ENGINEER
MG 02 ASSISTANT OFFICER/
ENGINEER
MG 01 OTHERS
Note : Promotions from one Grade to higher Grade are on
Performance Appraisal Based & conduct of an Group
interview of consisting Manager higher than MG 7.

THE PRODUCT
The main products of the Federal- mogul bearing India
limited are:-

1.Plain sleeve Bearing


2.Flange Bearing
3.Washers
4.Bushes
WORKING OF THE PRODUCT

In Internal Combustion Engine power is


developed by burning fuel (gasoline & diesel most commonly)
and air in hollow cylinders inside the cylinder block. The
block is the foundation of the engine, and all other parts are
placed inside it or are attached to it. The major parts are
cylinder, piston, connecting rod and crankshaft.The moving
engine parts are in constant contact with some other part due
to which they wear out because of friction.

Connecting
Rod Bearing
Transmission
Bush

Flange
Bearing

Main Bearing

2.1 ENGINE BEARINGS:


Bearings are devices used to transmit loads between relatively
moving surfaces. Bearings are used in all types of machinery,
engines and mechanisms for supporting and controlling the
motion of the rotating, sliding or reciprocating parts. Shafts,
spindles or axles usually support the rotating parts. Bearings
are designed to serve the purpose with minimum friction,
power loss, and generation of heat and are aided in their
requirement by suitable lubricants. Bearings are used in
Automotive, Industrial, Agricultural, Earth Moving, Marine
and Stationary Engines among others. Bearings that support
the rotating shaft in a fixed position against loads acting
perpendicular to the axis of shaft only are called Radial
Bearings. Those that support against loads parallel to the axis
of the shaft are called Thrust Bearings, while those, which
resist both radial and thrust loads, are called Angular or
Radial-Thrust Bearings.

Bearings are of two types:


(A) Anti-Friction Bearings.
(B) Sleeve Bearings.

2.1 (A) ANTI-FRICTION BEARINGS:


These Bearings utilize Rolling Balls or Rollers to provide a
Rolling Contact between the surfaces. In an automobile, anti-
friction Bearings are found in
The Suspension, Transmission and other parts of the Drive
Train.
Figure 3: An anti-friction roller and ball bearing.
2.1 (B) SLEEVE BEARINGS:
The Sleeve Bearings are so called because they are
shaped like a Sleeve and are firmly held in place around a
rotating Shaft, which results in a Sliding Contact. Sleeve
Bearings are found inside the Engine.

Figure: Friction or sleeve bearing.


WORKING
CAPITAL
MANAGEMEN
T
INTRODUCTION
Working capital management is significant in financial
management due to the fact that it play an important
role in keeping the wheels of a business enterprise
running. It is concerned with short term financial
decision lack of effective and efficient utilization of
working capital leads to earn low rate of return on
capital.
Working capital means meeting day to day
requirements. The requirements of working capital
changes from time to time and firm depending upon
nature of business market condition, production policy
etc. Working capital to a company is like the blood to
human body. So working capital management if
carried out effectively, efficiently will assure the
health of an organization.
REVIEW OF LITERATURE
Working capital typically means the firm’s holdings of
current, or short term assets such as cash, receivables,
inventory and marketable securities. Much academic literature
is directed towards gross working capital, i.e. total current or
circulating assets. These items are referred to as circulating
assets because of their cyclical nature. The goal of working
capital management is to manage the firm’s current assets and
current liabilities in such a way that a satisfactory level of
working capital is maintained.

In the words of Shubin, “Working capital is the amount of


funds necessary to cover the cost of operating the enterprise.”

According to Genestenberg, “ Circulating capital means


current assets of the company that are changed in the ordinary
course of business from one to another, as for example, from
cash to inventories, inventories to receivables, receivables into
cash.”

Economists like Mead, Malott, Baker and Field says that it is


found that the excess of current assets over current liabilities
is the amount that is normally available to finance current
operations. They feel that current assets should be considered
as working capital, as the whole of it helps to earn profits; and
the management is more concerned with the total current
assets as they constitute the total funds available for
operational purposes. On other hand, economists like Lincoln
and Saliers uphold the former view. They argue that:
(A) Balance Sheet Concept

 Gross working capital (capital invested in total current


assets of an enterprise)

 Net working capital

Net working capital = Current Assets – Current Liabilities