Académique Documents
Professionnel Documents
Culture Documents
(VISTAS)
Submitted by
RAGHUL.R
PROFESSOR
SCHOOL OF MANAGEMENT STUDIES
(VISTAS)
PALLAVARAM,
CHENNAI - 600117.
JUNE 2019
SCHOOL OF MANAGEMENT STUDIES
BONAFIDE CERTIFICATE
This is to certify that the summer internship report titled “An Organizational Study of
MOTHERSON SUMI SYSTEM Ltd” is a bonafide record of work carried out by
RAGHUL.R 18301132 SCHOOL OF MANAGEMENT STUDIES under VELS
INSTITTUTE OF SCIENCE, TECHNOLOGY & ADVANCED STUDIES (VISTAS)
submitted in partial fulfillment of the requirements for the award of the degree of MASTER
OF BUSINESS ADMINISTRATION in GENERAL from the VELS INSTITTUTE OF
SCIENCE, TECHNOLOGY & ADVANCED STUDIES (VISTAS) for the second semester
during 2018-2020 under our guidance.
HOD-MBA PROFESSOR
DR.P.R.RAMAKRISHNAN
DEAN
SCIENCE TECHNOLOGY AND ADVANCED STUDIES hereby, declare that the Summer
Ltd ”, submitted to VISTAS in partial fulfillment of the requirement for the award of the degree
of Master of Business Administration in General is a bonafide work carried out under the
Place:
R.RAGHUL
Date:
COMPANY LETTER
ACKNOWLEDGEMENT
I would like to thank Dr.S.PREETHA, M.B.A., M.PHIL., Ph.D, HOD, School of Management
Studies, VISTAS for the encouragement and guidance to do the project effectively.
I also express my heartfelt thanks to My Parents, Family members and all my friends for their
precious advice, continuous encouragement and support and for all the help they have
conducted to me which facilitated to the completion of this work.
CONTENTS
1 Introduction
Introduction
Company Profile
Industry Profile
3 Research Methodology
Period of study
Method of data collection
Learnings
5
Conclusion
6
Bibliography
Annexures
INTRODUCTION
INTRODUCTION
An organization is a social arrangement which pursues collective goals, which controls its
own performance and which has a boundary separating it from Environment. Organization is
the association formed by a group of people who see that there are benefits available from
working together towards some common goal.
Organizational study refers to the study of organization as a whole and getting adequate
knowledge with various departments in the organization. The study was at a Motherson Sumi
System Ltd, Ponthur (Sriperumbathur). The study is based on the different aspects and
dimensions of different departments of the company.
COMPANY PROFILE
Motherson Sumi System, established in 1986 is the flagship company of the Samvardhana
Motherson group. Motherson Sumi System is a joint venture between Samvardhana Motherson
group and Sumitomo wiring system of Japan. Motherson Sumi System is a leading automotive
mirror and wiring harness manufacturer for passenger cars. It also supplies plastic components
and modules to the automotive industry. Motherson Sumi System has offices and
manufacturing units in 24 international and 11 Indian locations. It is a fully equipped facilities
to support customers in the automotive and the non-automotive segments.
Motherson Sumi System Limited is one of the world’s leading specialized automotive
component manufacturing companies for original equipment manufactures with a diverse
global customers base of nearly all leading automobile manufactures. Globally the company
has a presence in 36 countries across 6 continents. Motherson Sumi System Limited is
currently the largest auto ancillary in India. The present product range of Motherson Sumi
System Limited comprises of wiring harnesses rear view mirrors molded plastic parts
included car interior and exterior parts bumpers dashboards and door trims complete
modules rubber components for automotive and industrial applications high precision
machined metal parts injection molding tools and HVAC systems. Motherson Sumi System
Limited was incorporated in the year 1986 as a joint venture between Samvardhana
Motherson group and Sumitomo wiring systems (Japan). The company was incorporated
with the objectives of manufacturing integrated wiring harnesses with high tension cords
and components for integrated wiring harnesses including plastic and metal parts.
MOTHERSON SUMI SYSTEM LIMITED has a highly successful joint venture with visiocorp in
India for past 13 years and is leading supplier of rear view mirror systems to automobile
manufactures in India. The board of directors of MOTHERSON SUMI SYSTEM LIMITED at its
meeting held on 29 June 2017 approved the proposal for purchase of shareholding held by
Wilhelm PUDENZ and WICKMANN werke Gmbh in Motherson PUDENZ WICKMANN Ltd.on
transfer of these shares MPWL will become the wholly owned subsidiary of Motherson Sumi
System Limited. MPWL registered net sales of Rs.2.64 crore and profit after tax of Rs 0.42
crore of the year ended 31st march 2018. The purchase price for the transaction is USD
201.The acquisition would enable both companies to capitalize on new opportunities in their
exiting and new geographies as well as within each others customer portfolios . Reydels’s
revenue for the year ended 31 December 2018 was USD 1048 million and EBITDA was USD
68 million. The consideration is expected to be financed using existing cash and banking
limits at SMRPBV.
Mission
The mission of Motherson Sumi system Ltd, are its future hypothetical goals it wants to
achieve in its long term tenure. The mission of MOTHERSON SUMI SYSTEM LIMITED includes:
At Motherson Sumi system Ltd, they believe in being in control of their destiny. They set
Ambitious target and believe in stretching themselves to out perform them. Therefore ,one
of the leadership position in the Indian market not with standing. Motherson Sumi System
Limited is now set to look oversees for new challenges. At home and abroad , Motherson Sumi
System Limited is looking not only consolidate its leadership positioning various segments
through newer ,high technology products but also through consistent organic and inorganic
growth opportunities, in wires and allied products. Becoming a leader in Automotive segment
is a priority. If the company continuous to grow at the current pace, Motherson Sumi System
Limited is expected to reach U.S 5 Billion dollar worth in less than 5 years continuous focus
on cost and operating efficiency remains the hallmark of the company.
Adding to all this is the fact that radicalization in India is throwing up fresh
opportunities, as is the boom in road infrastructure and the completion of the golden
quadrilateral and the north-south-east-west corridor. Therefore the future is optimistic with
promises of various cycle of growth. Motherson Sumi System Limited has three automotive
manufacturing facilities and one unit for the production of tube sand flaps into four locations
based in west and south India. Motherson Sumi System Limited, endeavour has been to have
the widest spread of sales and regional offices, along with stock points at locations which
allow for maximum customer research and efficient supply of chain management.
Motherson Sumi System Limited dealers or business partners are also chosen with great
care. MRF’s products are also sold through a combination of outlets ranging from exclusive
dealership to muti-brand and branded retail outlets the continuous upgradation of dealer
knowledge is in Motherson Sumi System Limited’s production, technical and commercial
force, we feel that we are best positioned to meet the customer specific needs .
Values
we are guided by shared values that we will live by as a company and as individuals.
OVERVIEW
People around the world invite our automotive into their lives more than 1.3 billion
times a day. The Company has a presence in people's lives not only as a simple moment of
refreshment, but also as an employer, a business partner, a part of the community and a
global citizen. We highly value these relationships-and the trust and responsibility that come
with them.
That's why every day we strive to ensure that our actions in the workplace, make a
positive contribution to the marketplace, the environment and the communities. It's not
enough to conduct business responsibly; we endeavor to go beyond this by improving the
lives of those who are touched in some way by our business. Our efforts don't have an end
date corporate responsibility is an ongoing journey. It will continue to evolve as long as we
exist.
OUTLOOK
The company has set up for rubber compounding and rubber moulding at Chennai by shifting
part of the equipment from Australia. This is expected to increase the competitiveness of the
company in product category.
New unit is coming up at Bangalore for Toyoda small car is almost near completion
,commercial production will start in the year end.
Motherson Sumi System Limited will be expanding its facility in Pune and setting up
facility in northern region.
Motherson Sumi System Limited is committed to conduct its business with highest
standards of business ethics. The code is intended to provide guidance and help in recognizing
and dealing with ethical issues, provide mechanisms to report unethical conduct and to help
foster a culture of honesty and accountability. The matters covered in the code are the utmost
importance to the company ,our shareholders and the business partners.
Our company is committed to conduct its business affairs in accordance with the economic
development, objectives of the government and foreign policies of our country and the
countries which we operate.
Our Code of Business Conduct serves to guide the actions of our employees, officers
and directors in ways that are consistent with our values of integrity and accountability. The
Code helps our people play by the rules wherever we operate around the world
Beliefs
There is much in our world to celebrate, refresh, strengthen and protect. The
Motherson Sumi System Limited Company is a vibrant network of people, in over 200
countries, putting citizenship into action. Through our actions as local citizens, we strive every
day to refresh the marketplace, enrich the workplace, protect the environment and
strengthen our communities.
We are a local employer, with responsibility to enable our people to tap into their full
potential; working at their innovative best and representing the diversity of the world we
serve.
Learn more about our beliefs and how they guide our actions every day, around the
world
Diversity
When we talk about the future at The Motherson Sumi System Limited Company, we
talk about being the preferred beverage company for consumers, the preferred employer in
the labour market, the preferred partner among our customers and a valued member of every
community in which we operate. These are our aspirations. While not entirely there yet, we
are getting closer - thanks in large part to our ability to leverage the skills and insights of our
diverse global workforce.
At Work
The Automotive Company is built around two core assets, its brand and its people.
These two assets give us the opportunity to keep our central promise: to refresh the world in
mind, body, and spirit, and inspire moments of optimism; as well as creating value and making
a difference..
At The Motherson Sumi System Limited Company, we strive for an inclusive culture
that is defined by our seven core values: leadership, passion, integrity, collaboration,
innovation, quality, and accountability. Each day we work to bring these values to life through
our diversity workplace strategy. This strategy includes programs to attract, retain, and
develop diverse talent; provide support systems for groups of diverse background; and
educate at all levels so that we master the skills to achieve sustainable growth. Through this
strategy we can achieve our goal of being the destination of great global talent, a culture
committed to recruiting and retaining employees of diverse backgrounds and ultimately
becoming the most respected company in the world.
INDUSTRY PROFILE
The automobile sector is a key player in global in Indian economy. The global
motor vehicle industry contributes 5 per cent directly to the total manufacturing
employement,12.9 percent to the total manufacturing production value and 8.3percent to the
total industrial investment. It also contributes US 560 billion to the public revenue of different
countries in terms of taxes on fuel, sales, circulation and registration. The annual turnover of
the global auto industry is around US 5.09 trillion, which is equal to largest economy in the
world. All the world it has been treated as a leading economic sector because of its extensive
economic linkages. The auto-components manufacturing sector is another key player in the
Indian automotive Industry. There are two sets of players in the Indian auto industry:
Automobile component manufactures and vehicle manufactures, which are also referred to as
original Equipment manufactures.
COMPETITORS
Some of the major competitors of Mother’s son Sumi System Ltd.(MOTHERSON SUMI
SYSTEM LIMITED) in the India market are:
Minda Industries Ltd
Others
Arm rests
Bellows
Scuff plates
Auto A.C.components
Mirror housings
Inside Handles
Body colored painted parts
Major Players
There are several well established corporations in this Industry with widely advertised
Brands. Some of the major manufacturers are
Apollo Tyres
Balkrishna Industries
Bharat Forge
MICO
Omax Autos
Sona koyo
Sundram fasteners
Clutch auto
Motherson sumi
MANUFACTURING CAPABILITIES
The main purpose of doing the organization study was to study the various
departments of the organization and understand their basic functions, their purpose,
achievements, competitors and the mission and vision of the company and their progress
towards that. It is very important to observe the actual working of an organization and the
overall structure of the organization. The actual professionalism can be studied only through
experience. This study is taken up to fulfill the requirement of M.B.A degree course. The main
purpose of the training is to know the application of the theoretical aspects in our course in
the corporate environment and gain firsthand experience and expose ourselves to corporate
policies, ethics ,culture ,practices, procedures about the work culture and policies of the
company.
OBJECTIVES OF THE STUDY
The organization study was carried out in Motherson Sumi System Ltd, Situated at Ponthur
(Sriperumbathur) is to achieve the following specific objectives:
To familiarize with the organization structure and functioning
To know about the plan of the organization.
To familiarize with the different departments in the organization and their functions and
activities including documentation.
To understand how the key business processes are carried out in organization.
To understand how information is used in organization for decision making at various
level including data flow diagram.
To understand the growth and diversification strategies, portfolio structure of the
organization
To study the overall performance of the organization
To understand the performance measurements of the employees and various employee
welfare activities, training activities.
To understand the steps taken to increase the productivity in the organization.
To conduct a SWOT analysis of the organization.
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY:-
The process used to collect information and data for the purpose of making
business decisions. The methodology may include publication research, interviews, surveys
and other research techniques, and could include both present and historical information.
DATA COLLECTION
For research study the data has been collected by both the primary and secondary means.
Secondary data was collected through literature review which includes company’s
internal records, publications, annual reports, journal, statutory report, website(officials and
others),etc.
FUNCTIONAL DEPARTMENTS:
DEPARTMENTS IN DETAILS
Motherson Sumi System Ltd has ten major functional departments for ensuring the smooth
working of the organization. They are:
Marketing Department
PPC Department
Supply Chain Management Department
Quality Assurance Department
Stores
Maintenance Department
Production department
Finance department
HR Department
R & D Department
Structure of Hr department
General Manager
HOD -Personnel
Staffs
Functions of HR Department
Administrative function
Manpower planning
To ensure optimum use to human resources employed
To determine further recruitment level
To forecast further skill requirements that will serve as a basis for training and
development programs.
Recruitment
It is the process of searching right process and stimulating them to apply for job in the
organization. Recruitment in Motherson Sumi System Ltd is carried out based on
departmental requirements.
Induction
12 day induction program is conducted for the newly selected employees.
6 day classroom training and 6 days on the job training.
Conducted by the HR
During the induction program the company policies, rules and regulations ,plant
overview, job overview are explained to the employees.
The induction helps the employees to gain information on the company and the
operation carried out.
Training
a. orientation training
b. On the job training
c. External training
d. Internal training.
IR
Hr plays an important role to maintain good relationship between the employees and the
departmental heads.
Frequent meetings are conducted between the Hr and the employees
Monthly departmental review meeting is also conducted to make the employees aware
of the departmental performances.
Grievance handling
Separation
Attendance Management
a. Basic pay
b. Fixed DA
c. HRA
d. Conveyance & Other allowance.
FINANCE DEPARTMENT
Financial functions
Senior general
manager
Sales officer
\
Senior officer accounts
Capital budgeting
The capital budgeting is done at the beginning of the year itself. The requirement of capital
will be specified for approval. During the budgeted year, if any further requirement of capital
is faced then a proper justification has to be made. If the requirement is seen as an important
one then approval of the capital is sanctioned.
Cash management
Cash management system is one of the key areas in any business. Apart from the fact that
it is the most liquid asset, cash is the common denominator into which all current assets can
be reduced because other major liquid assets, receivable and inventory get eventually into
cash.
ORGANISTATIONAL CHART
DEPARTMENT HEADS
HR
FACT
MARKETING
ENGG PURCHASE
QUALITY STORES
PRODUCTION EXPORT
FINDINGS
FINDINGS
It has been the MATE’s endeavour to constantly add new products in its product line.
A new product ie: plastic fuel tanks been identified.
As it involves the life risk, we have to meet all the safety standard, so related findings are
to use those materials which are meeting the standards of safety, design, corrosion,
weight, emissions, etc.
The technological requirements are extrusion blow molding machine used to
manufacture plastic fuel tanks.
The cost involved in manufacture of complete fuel tank system assembly is INR 39098
which is very less comparable to the manufacturing price what world other players are
offering.
Industry
Plastic fuel tanks for passenger / light commercial / heavy vehicles are not very popular
in India. However it is an established and well-accepted concept in developed countries
in western Europe and USA.
Considering this establishing plastic fuel tank manufacturing capacity in India is
expected to provide good opportunity in the automobile industry.
European market response for our product is positive.
OBSERVATIONS
Motherson Sumi System Ltd produces the best slack adjusters in India and in the world.
The company is running in a systematic and organized manner
The internal communication of the company is doing well
Majority employees of Motherson Sumi system Ltd are men.
The manufacturing unit is well maintained, clean and hygiene.
The employees are satisfied with the working conditions and working firms of the firm.
R & D cell of Motherson Sumi System is well acclaimed.
Both punching cards and biometric (using swiping cards) system is used to mark
attendance.
Workers health and safety are given prime importance
Diversification of products in the same product line.
SWOT ANALYSIS
The SWOT analysis has revealed the strength, weakness, opportunities and threats of the
company. It has been detailed below:
STRENGTHS
WEAKNESSES
High operational cost due to the use of modern and costly machinery for production.
Company is highly capital intensive.
High rate of absenteeism.
Strong rate union activities sometimes create problems among employees and also
disturbs the smooth functioning of the plant.
Lack of marketing department at the plants.It is a corporate office.
Lack of individual initiative.
Less interaction between manufacturing and marketing department.
OPPORTUNITIES
LEARNING
LEARNING
The organization study at Motherson Sumi System Ltd, Ponthur (Sriperumbathur) has
given me the opportunity to gain valuable industry related experience that would allow me
to expand my career options. The skills and knowledge I gained at Motherson Sumi System
Ltd was quite different from my experience. I was able to utilize and engage the skills and
knowledge gained in my experience in a more practical approach at Motherson Sumi System
Ltd the guidance ,support, feedback, useful suggestions and advanced insights about my
subject which was provided by my project guide helped me to successfully complete this
organisational study.
The organizational study definitely broadened my mind. what stood out during the
organizational study at Motherson Sumi system Ltd was the dedicated Motherson Sumi
system automotive staff and a great working Environment.
CONCLUSION
CONCLUSION
The supply of raw materials is very complex in nature and is also undertaken with very
rigid rules.the supply of raw materials is met on “day plan” basis.if the supply can be
met than the factory produces the compounds by itself.but if the supply can’t meet the
demand of the day then the raw material is bought from only two already selected
suppliers.these suppliers charge a higher rate than market price of the raw material and
the company also does not request for the tenders for the same which leads to increased
manufacturing cost.
The demand chain is very well lit off with many well known automotive brands.but if the
company focuses more on domestic automotive brands then there is a better chance of
increasing their domestic earnings.
The main customers of MOTHERSON SUMI SYSTEM LIMITED who responded to the
questionnaire were very much satisfied by the goods provided by the company.they also
considered MOTHERSON SUMI SYSTEM LIMITED to be an important company for the
procurement of required products.the company also considers that MOTHERSON SUMI
SYSTEM LIMITED products are a value for their money and also has a good scope in the
Indian market in the future.
BIBLIOGRAPHY
Books Referred:
1. Statistical Methods.
By Y.P.Agarwal.
2nd Edition.
By Uma Sekaran.
4th Edition.
3. Quantitative techniques.
By C.R.Kothari.
3rd Edition.
Websites Referred:
http://www.businessballs.com
www.statistic.isma.org/html
www.rese.des/html