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KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

INDUSTRY PROFILE

INTRODUCTION

Textile and clothing sector is the largest employer after the agriculture sector. It
contributes major part in industrial and exports earnings of the country. The Indian
textile industry is one of the largest segments of the Indian economy accounting for
over one fifth of the industrial production. The textile industry is having a complex
structure which is marked by presence textile of large scale production units and
small scale independent units
The domestic textile machinery has shown some signs of revival in the past few
months with improved demand from the user industry. Industry is spending huge
amount on the technology up gradation. This technology up gradation schemes are
expected to sustain this growth in the future.

This evident from the fact those 29FIPB (foreign investment promotion board)
proposals have been cleared by the union minister of finance and company affairs,
the approval amounted Rs 85corers. The major investment proposal pertains to
manufacturing of textile machinery, spinning frames and manufacturing of
transmission parts for automobiles etc.

Market size is substantial, but the demand has been unstable. The share of
machinery in the overall manufacturing industry is increasing year by year.

The textile industry is undergoing a major reorientation towards non-clothing


applications of textiles, known as technical textiles, which are growing roughly at
twice rate of textiles for clothing applications and now account for more than half of
total textile production. The processes involved in producing technical textiles require
expensive equipments and skilled workers and are, for the moment, concentrated in
developed countries. Technical textiles have many applications including bed sheets;
filtration and abrasive materials; furniture and healthcare upholstery; thermal
protection and blood-absorbing materials; seatbelts; adhesive tape, and multiple
other specialized products and applications. The Indian Textile industry has been
undergoing a rapid transformation and is in the process of integrating with the world
textile trade and industry.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

This change is being driven by the progressive dismantling of the MFA and the
imperative of the recently signed General Agreement Trade & Tariff. In this bold, new
scenario, India has to move beyond its role of being a mere quota satisfying country.

History of Textile

The history of textile is almost as old as that of human civilization and as time moves
on the history of textile has further enriched itself. In the 6th and 7th century BC, the
oldest recorded indication of using fiber comes with the invention of flax and wool
fabric at the excavation of Swiss lake inhabitants. In India the culture of silk was
introduced in 400AD, while spinning of cotton traces back to 3000BC. In China, the
discovery and consequent development of sericulture and spin silk methods got
initiated at 2640 BC while in Egypt the art of spinning linen and weaving developed
in 3400 BC. The discovery of machines and their widespread application in
processing natural fibers was a direct outcome of the industrial revolution of the 18th
and 19th centuries. The discoveries of various synthetic fibers like nylon created a
wider market for textile products and gradually led to the invention of new and
improved sources of natural fiber. The development of transportation and
communication facilities facilitated the path of transaction of localized skills and
textile art among various countries.

Textile History in India

Indian textile enjoys a rich heritage and the origin of textiles in India traces back to
the Indus valley Civilization where people used homespun cotton for weaving their
clothes. Rig veda the earliest of the Veda contains the literary information about
textiles and it refers to weaving. Ramayana and Mahabharata, the eminent Indian
epics depict the existence of wide variety of fabrics in ancient India. These epics
refer both to rich and stylized garment worn by the aristocrats and ordinary simple
clothes worn by the common people. The contemporary Indian textile not only
reflects the splendid past but also cater to the requirements of the modern times.

Influences of changes shaping the industry.We will touch upon some of the more
significant changes that have and are shaping the Indian textile industry
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Changes in Emphasis

There has been a distinct and positive shift from quality to quality. Earlier Indian
textiles were considered cheap and of low quality. The industry was at that time
driven by large volumes, which were of paramount importance. The best quality was
produced in Europe and Japan. Since then, India has come a long way, emerging as
a manufacturer of high quality yarns and fabrics. The leading mills such as
Raymond’s, Read & Taylor, Aravind mills etc Improved their quality standards
prevailing into the world

Implementation of New Equipment

The textile industry has also become a high technology. The textile industry has also
become a high technology industry. Nobody earlier could have concerned that the
industry would require top of the line technical skills. Present day textile machinery is
fully computerized and needs totally new skills to effectively manage it.

New Marketing Trend

On the marketing side, there has been a total change , with almost all players in the
industry extending their reach to international markets. The impact of these trends on
the textile industry is profound. Increasingly any company cannot sustain itself only
on local market demand or only the exports. One has to look at the global markets in
totality.

Competition

This compulsion to access and compete in international markets has been perhaps
one of the saving graces for the industry. Clearly the ability and necessity of meeting
global competition head on, has forced the industry to upgrade its technology,
product quality, cost structure and marketing skills. Truly, we have learnt more from
the competitions than from ourselves.

Decentralized sectors
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Another visible change relates to the scale of operations. Earlier textile mills were
generally reasonably large size becomes a non-constraining factor with the advent of
power loom sector, which enabled small weavers to make and market their own
fabrics in direct competition with large mills.

Technocrats

Another shift in the industry is regarding entrepreneurship. Technocrats have been


able to become possible to have small size spinning, weaving and processing mills.
All this was earlier the domain, solely of large businesses.

Cost Consciousness

The greater competitive pressure have highlighted the need to control cost of every
type of whether it be energy, water or labor all of which were earlier taken for granted
now every mill is highly cost conscious and industrial engineers keep detailed trace
of every cost parameter including energy consumption including energy
consumption, waste control, machine efficiency and productivity. No doubt, this will
have to be an ongoing exercise. Since cost have to be ruthlessly and persistently
brought down.

Labor intensive industry

The textile industry being labor intensive, is slowly migrating from high cost
countries, such as the United states, Europe, Japan, Australia, Taiwan and Korea. All
these countries were at one time leading textile manufacturers. But with the high
labor cost, capacities in these countries are being diverted elsewhere. This is
happening even as the developed economies make large investments in better
machinery and automatism.

Labor cost comparison (Europe & India)


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Labor Europe Rs/Hour India Rs/Hour


Skilled workers 750 20.00
Operating personnel 625 12.50
Unskilled workers 500 6.25
Operating hours per annum 6750 48.75

Indian Textile Industry has some inherent strength

 Tradition in Textiles and long operating experience


 Large and growing domestic market

 Strong raw material base

 Production across entire textile value chain

 Stable, low-risk economy, safe for business growth

 Easy availability of abundant raw materials like cotton, wool, silk, jute

 Widely prevalent social customs

 Variety of distinct local culture

 Constructive geographic and climatic conditions


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Table showing the India’s Competitiveness with Other Country

There is no denying India is competitive enough and will become even more
competitive once its infrastructure issues are sorted out. China has probably already
reached its peak and further improvements may not be as dramatic, henceforth

Key countries / regions Key positives Key negatives


China Efficient, low cost,Growth at the cost of
vertically integrated profits
India, Pakistan Vertically integrated, lowLacks economies of
cost scale and infrastructure
support
Mexico (NAFTA), Proximity to market,Lack China and Indias
Turkey duty and quota free degree of
competitiveness
ASEAN (Vietnam, Cheap labor No other cost or
Cambodia, Indonesia) locational advantage
AGOA (African) Quota and tariff free,Lacks integration and
countries, Bangladesh cheap labor China and Indias degree
of competitiveness
Hong Kong, Korea, Trading hubs proximityNo cost advantage,
Taiwan to China protected currently by
quotas
USA and EU Non-quota barriersUS$ 400 bn trade loss
likely to prove irritant tolikely ov
imports

Source - Industry, I-SEC Research 1.6

India’s world market share in Textile Industry 1.7


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

In spite of the Chinese dominance, India has a fair opportunity to grab a substantial
stake in the projected garment market share. According to PHD Chamber of
Commerce and Industry (PHDCCI), post-MFA, India's market share in the US is
expected to go up to 15 per cent from the present 4 per cent. In the EU, the market
share increase is expected to be 50 per cent from the current 6 per cent to 9 percent.
The world population is increasing at the rate of 1.8% per annum between 1980 to
2000 while it was 1.4% between 1960 to 1980 Per capita fibers consumption showed
an increase of 0.9% between 1980 to 2000 while it was 1.8% between 1960 to 1980
World fibers need will increase by 2.4% till 2001 The figure for 1960 to 1980 was
3.6%.

Particulars UNIT 1960 1980 2000 1960-80 1980-2000

Trend Trend
World population (BIU) 3.0 4.4 6.2 +1.4 +1.8
Per capita fiber (KG) 5.0 6.8 7.7 +1.8 +0.9
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

usage
Fiber need/ billion (MT) 15.0 30.0 48.0 +15.0 +18.0
Population
Growth rate in (AVG)
Consumption per year annual increase

The above figure an attempt is made to analyze the trends in the world fiber type
usage between 1960 to 2000 Natural fiber usage has dropped from 77% in 1960 to
44% in 2000 (projected) while manmade non cellulose fibers show an increase from
5% in 1960 to 47% in 2000 (projected). This is a phenomenal increase and is due to
mainly advent of polyester its multiple uses and its popularity.

As further analysis the manmade fiber production shows that in the manmade fiber
are polyester has increased its share from 42% in 1986 to 55% in 2000 (projected).
Nylon, Rayon and Acrylic show a decreasing trend in the percentage. But is absolute
terms they registered an increase.

Indian Textiles targets to achieve by end of the 11 th Five year Plan (2007-2012)

 Market size of US$ 115 Billion


o Export target US$ 55 Billion

o Domestic market US$ 60 Billion

 INDIAS market share in world textiles trade to grow from 3% to 8 %

 12 Million additional jobs

 Investment Rs.150,600 Corers

Textile scenario

Developing countries with both textile and clothing capacity may be able to prosper
in the new competitive environment after the textile quota regime of quantitative
import restrictions under the Multi-Fiber Arrangement (MFA) came to an end on 1st
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

January, 2005 under the World Trade Organization (WTO) Agreement on Textiles
and Clothing.

As a result, the textile industry in developed countries will face intensified


competition in both their export and domestic markets. However, the migration of
textile capacity will be influenced by objective competitive factors and will be
hampered by the presence of distorting domestic measures and weak domestic
infrastructure in several developing and least developed countries. India must take
adequate measures for capturing its market by promote the development in this
sector.

The Textile System 1.8

The Domestic System


Domestic System Spinning
Handloom Weaving Carding
Bleaching Cloth Merchants
Willowing The Fuller
Cloth Dresser Preemer Boy
The Textile Industry
Woollen Industry Cotton Industry
Silk Industry Linen Industry
Inventors
Matthew Boulton William Murdock
Edmund Cartwright Matthew Murray
Samuel Crompton Lewis Paul
James Hargreaves William Perkin
Joseph Jacquard John Roebuck
John Kay Charles Tennant
Charles Macintosh James Watt
George Macintosh Joseph Whitworth
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Textile Inventions
Flying Shuttle Roller Spinning
Spinning Jenny Flax Spinner
Spinning Mule Carding Engine
Water Frame Rotary Steam Engine
Willowing Machine Dash Wheels
Cylinder Printing Power Loom
Textile Entrepreneurs
. Richard Arkwright William Houldsworth
Thomas Ashton Thomas Lombe
John Bright John Marshall
Richard Cobden Samuel Oldknow
George Courtauld Robert Owen
Samuel Courtauld John Owens
David Dale Robert Peel
John Fielden William Radcliffe
Joshua Fielden John Rylands
Samuel Fielden Titus Salt
Thomas Fielden Jedediah Strutt
Robert Hyde Greg Peter Alfred Taylor
Samuel Greg Peter Taylor
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

COMPANY PROFILE

INRODUCTON

KIRLOSKAR TOYODA TEXTILE MACHINERY LIMITED (KTTM) is an outcome of


joint venture agreements between TOYODA AUTOMATIC LOOM WORKS (TAL)
JAPAN and the KIRLOSKAR GROUP INDIA signed on 16 th July 1995 with an equity
participation of 97% and 3% respectively. It is situated at Jigani Industrial area
Bengaluru.

The factory was formally commissioned in May 1997. The total land area is 18 acres
and total cost was Rs 55 corers. The total project was executed with in a record time
of twenty two months.

Mr. Laxman Rao Kirloskar, Mr. Sakichi Toyoda “Human Intellect and Individual ability
gives us our means to direct our talents towards production work” “Open your mind
and look at the great world outside” Two great visionaries of different era and
countries with a common vision has resulted in the formation of KTTM

PROMOTORS:

TOYODA AUTOMATIC LOOM WORKS (TAL) JAPAN:

TAL is the parent company of the world famous TOYOTA MOTARS COMPANY,
SALICHI TOYODA established TAL in 1926. The turnover of TAL is around US $ 300
million. The group chairman is Dr.SHOICHIRO TOYODA.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

THE KIRLOSKAR GROUP INDIA:

LAKSHMAN RAO KIRLOSKAR established the KIRLOSKAR GROUP in 1895. The


total turnover of the group is around Rs 2600 corers. The group chairman is Mr.
VIJAY KIRLOSKAR.

ORIGIN OF THE COMPANY:

KIRLOSKAR TOYODA TEXTILE MACHINARY LTD (KTTM) a joint venture


promoted by TOYODA AUTOMATIC LOOM WORKS LTD, JAPAN and
KIRLOSKAR GROUP INDIA ,launched the high speed ring frame RXI 240 in the
INTERNATIONAL TEXTILE MACHINERY (ITME) 96.

During the last few years RXI240 has set impressive standards in productivity yarn
quality and flexibility needed to launch new flights of creativity in clothing.

The state of the art manufacturing facility near Bangalore has certain uniqueness in
manufacturing and assembly in house of quality index programmed is the common
threat that runs across the entire organisation including customer installation,
customer who have the experience of visiting factory acknowledge the impact it has
made in product installed in their mills. KTTM has offered support to extend this
concept to their operation. The part flow system ensures quick response to customer
contacts with alarming flexibility and precision.

With an impressive customer base of over 40 leading Indian mills, repeat business
contracts, bears testimony for the growing population of RX 1240.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Their service driven policy to meet the customer expectations is truly reflected in all
operational activities and customers differentiate us in this respect as KTTM service
is felt by them. Their customer training programmed are tailor, and made to suite the
need of discerning customers with a blend of classroom input and hands on factory
shop floor inputs.

Their qualified and trained service personnel add a new touch of excellence in
installation as well as in providing continuous service including well backed up
spares availability at sales and service centres.

KTTM is now entering a phase of growing visibility with in an installation base of well
over 400000 spindles and is well poised to make a mark for itself in the spinning
machinery sector.

KTTM has gained acceptance amongst leading India mills and has emerged as a
front runner through innovation, commitment to quality and total customer
satisfaction.

..........TOGETHER WE LEARN, WORK AND CONTRIBUTE.

Business Activity

1996 - Textile machine manufacturing


2001 - Textile machine part exports to Japan
2004 - TOYOTA Transmission Parts, 31-types
2006 - TOYOTA Material Handling Equipment Sales & Service

We are one of the few companies manufacturing Capital equipment and Auto parts
with same people, in the same campus
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

AWARDS WON BY KTTM:

Delivery - 2004

Delivery - 2005
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Quality - 2002

Delivery - 2002

SUPPLIER OF THE YEAR AWARD 2007


CONTRIBUTION TO INNOVATION IN TEXTILE INDUSTRIES WITH ADVANCED
TOYOTA INDUSTRIES SKILL AND CREATIVITY.

The roots of the Toyota Group go back to the renowned Japanese inventor Sakichi
Toyoda and his invention of the automatic loom. Since its founding, Toyota Industries'
Textile Machinery Business has developed, manufactured, and sold textile machinery,
the majority of which has been supplied to customers outside Japan. We manufacture
two main categories of textile machinery: spinning machinery and weaving machinery.
To keep up with the advancing needs of the market, we continuously incorporate the
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

latest technological developments, including control technology, mechatronics and IT,


into our textile machinery. We receive high praise from customers around the world as
an international leader, especially for our flagship air-jet loom, which boasts the No.1
share in the industry, but also for spinning machinery such as our ring spinning frames
and roving frame

2.1 COMPANY PROFILE

Joint Venture Toyoda Automatic loom works Ltd


Japan
Partners Kirloskar group
Name of the Organisation Kirloskar Toyoda Textile Machinery
Pvt. Ltd
Head office Bangalore
Branches Delhi Coimbatore and Mumbai
Brand Name Kttm
Managing Director T Parabrahman
Agreement Date 15th July 1995
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Company formation 14th August 1995


Foundation Ceremony 22nd Feb. 1996
Factory inauguration 1st June 1997
First Machine enter the market 1st June 1997
First customer Vardhman group
Area of operation Textile machinery, auto parts &
Material handling equipments
Company product High speed ring frame rxi240
Outcome of the textile machinery. Yarn
Main competitor Lakshmi machine works[LMW]
Production capacity 25000 Spindle per month
Product range 48 Spindles to 1440 spindles
Land area 66570 sq meters
Building area 17415 sq meters
Gang way in shop floor 3685 sq meters
Total man power 758
Number of vendors More than 5
Board of directors 7 members
Bank State bank of India

PRODUCT PROFILE

KTTM manufactures only one type of ring frame i.e. RX1240 however they have
recently launched a new product named RX1240e.

RXI240:

RXI1240, a high speed ring frame was launched in India by TAL LTD, during the
international textile exhibition, ITME 1996. Since then RX1240 has set impressive
standards in productivity, yarn quality and flexibility needed to launch new flights of
creativity in clothing. According to the company’s claim, almost 40 leading mills
accepted the new product RX1240. It also claims to have continuous product
improvement in product design and manufacturing activities and hence providing the
customer a good product.

SOME FEATURES OF RX1240:

1. SHORT STRECH LENGTH:


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

2. OPTIMUM FLEECE ANGLE

3. TWIN TRAVERSE:

4. SUPERIOR DROP TYPE LUBRICATION:

5. INVERTER CONTROL AND PLC CONTROL:

6. POWERFUL PNEUMATIC SUCTION SYSTEMS:

7. HIGH PRECISION PARTS:

RXI240e:

This is a new product of KTTM, launched in the recent year. This product came in to
existence due to the changing needs of the customers. It is said to be an improved
version of RXI240. It was at India ITME 2000 that KIRLOSKAR TOYODA TEXTILE
MACHINERY PVT LTD, for the first time exhibited its new model ring frame RXI240e
ever since its market launch in September 2001 the machine has received
tremendous response from the Indian spinning industry creating strong demand. It
has grown from strength to strength, baked by the enthusiast’s response from the
discerning Indian spinning industry, which has won world wide accolades for its
capabilities.

RXI240 empowered you to have machine control at your fingertip. It incorporates


many special design features, which receives admiration from spinning technologist
all over India.

SOME IMPORTANT FEATURES OF RXI240e:

1 .e-CONTROL:

2 .e-PNEUMATIC SYSTEMS:
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

3 .e-SUPPORT GEARING:

4. e-SUPERIOR DROP TYPE LUBRICATION:

5. e-SPINDLE SPEED CONTROL BY INVERTER:

FORK LIFT DIVISION:

They are not manufacturing the forklift. Import from Japan and sell in domestic
market. For forklift they are doing only marketing and service.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

OBJECTIVES:

 Achieve safe working conditions and work towards zero accidents

 Develop human resources within the organization for achieving


optimum output to match the requirement of the work in future years.

 Achieve high level of eco- friendly environment

 To achieve sales target of the year

 Work together to achieve their target


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

 Touch the heart of the people

 In time delivery

 Provide good quality product

Bench marking
with the best
Produ
ct

Product & Commitment


People Customer &team work

Servic Peopl
e e

VISION:

“The one who survives is neither the strongest of neither the spices nor the
most intelligent but one most adaptable to change.”

MISSION:

“Speed up change and challenge zero defects most appropriate in these


challengeable time.”

QUALITY POLICY:
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Continual improvement by adhering to quality measuring system as defined


in quality assurance manual.

 Practicing our operational philosophy.

“SPEED UP- CHANGE AND CHALLENGE -ZERO DEFFCT”

 Involve all associates in problem solving giving thrust on innovation


and team work.

 Knowledge and skill enhancement by continuous training and job


rotation at all level.

 Treating human resource as an asset by practicing.

ENVIRONMENTAL POLICY

We at KTTM LTD Bangalore manufacture textile machinery. We manage our


business activities in as environmentally responsible manner by anticipating
and evaluating impact of our operations at each stage from product
development through production, resource utilization and waste disposal
which shall go beyond over activities as a business enterprise.

We shall Endeavour to achieve through the following, measures:

 Commitment to prevention of pollution and continual improvement in


our environment performance.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

 Ensure compliance with the relevant legislation and regulations

 Reduces environmental impact of our product activities and services

 promote energy conservation waste minimization through reduction


recycle or reuse

3.1 ORGANIZATIONAL CHART FOR THE CORPORATE CENTER

MANAGING DIRECTOR

VICE MANAGING Associated Vice


DIRECTOR president

Quality assurance

CFO HRM

Deputy Manager
Manager
General Manager
Finance & corporate
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Associated manager

Executives
Accounts, Finance Administrative System
&corporate safety, health &
environment Engineer

Head & SHE Senior Manager

Executives Programmer

Senior manager

Asst. Manager/senior

Executives
PRODUCTION DEPARTMENT

Production is a transformation process that converts raw material in to finish good’s


which have value in the market or will be used for producing the final product.

The activities in the operation split into two categories, the operation and non-
operation times. Operation time consists of actual processing of part by the machine.
Non-operating time includes material handling, storage, inspection etc.

STRUCTURE OF PRODUCTION DEPARTMENT

Senior Manager
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Cell 1 charge

Supervisor Supervisor Supervisor

Associates Associates Associates

In production department they make three cells. They are,

1. GARR END-OUTER END CELL:

GE and OE is a part, which is used in RXI 240 machine in a GE-OE cell they
produced 27 parts of material. After the production of these 27 parts they kept
in one trolley and it will be moved to assembly department. In assembly
department they assemble all the 27 parts. Their they will get GSRR and
OUTER END MACHINE which is main part in RXI 240.

In this cell they have a 17 employee’s working in a 3 shifts. They will use 5
machines to produce these 27 parts. After production of these part if they will
find any defect while inspecting the quality it will consider as a scrap.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

2. BEAM CELL:

Beam is a name of the material which is used in RXI 240 machine in this cell
they produce only beam, they have 8 employees working in 3 shifts and they
are using 4 machines to produce beam.

3. FRAME CELL:

Frame is also one of the materials which is used in RXI 240 machine. In this
cell they 3 employees’ working in a 3 shifts and they are using 3 machines to
produce frame.

BEAM PART FLOW CHART

Raw Material in Put

OPN 201/202 Part Load

OPN 301/302 Part Load

OPN 401/402 Part Load

OPN 501/502 Part Load


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

OK

Part Deburrle Cleaning

NOT OK Part Inspection OK


Part move to
rework area

Oiling Of Part

Part move to reject area


NOT OK

Part move to FG Trolley

Part Move to scrap area


FRAME PART FLOW CHART

Raw Material in Put

OPN 20 Part Load

OPN 30 Part load

OPD 40 Part load


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Part debar and cleaning

OK

NOT OK
Part Inspection
OK
Part move to rework
area

NOT OK
Part move to reject area
Part Move to Trolley

Part Move to scrape


area

KTTM HAS THREE DIVISION OF MANUFACTURING.


They are

 Textile Division.

 Transmission Division.

 Fork Lift Division.

TEXTILE DIVISION:

A textile division functions under the supervision of Sumanth. He is the GM of


this department total number of employees working in this division is nearly
250. In the year 2004, KTTM started its operation with the textile division only.
Textile division manufactures only two types of thread spinning frame they
are, RXI240 spinning frame and RXI240e spinning frame.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

TRANSMISSION DIVISION:

Transmission division is sub divided into two divisions. They are small part
machinery and large part machinery.

TRANSMISSION

DIVISION

LPM

SPM SPM:

SPM stands for small part machinery. This division was started in March 2004. This
division manufactures small parts which are being used by the large part machinery.
It manufactures parts like gear box. SPM division manufactures 24 small parts which
are used by large part machinery division. Production and quality standard required
for manufacturing is displayed on the notice board in this division. To attain desired
level of production daily graph and monthly graphs are displayed.

LPM:
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

LPM division also follows 5’s and Kaizen regular basis. In this department ideas of
employees are taken into consideration. Hence this encourages the employees to
give more and more ideas. This department follows FIFO method for inventories.
The product of LPM is sent to Toyota Kirloskar auto parts Bangalore for assembly
from there it is exported to Thailand.

MARKETING – SERVICE DEPARTMENT:

 The product currently manufactured is spinning frames for spinning industry.

 Beginning with ring frames for 100%cotton, the product verity has been
expanded to cover polyester cotton and 100% polyester.

 The product was launched in international textile machinery exhibition held at


Mumbai, December 1996.

 The factory inauguration was commissioned on 1 st June 1997, by handling


over the first machine to M/S Vardaman spinning and general mill Ltd,
Ludhiana.

 The company has established its own direct marketing and service center in
New Delhi, Coimbatore and Mumbai.

 The company has achieved a market share 11% during the period of 2006-07
and has targeted to expand the market share to 20% during current year
through its well activated service driven marketing strategy.

 The estimated turnover for the current year is around 170 corers.

Marketing department work for textile division only, this is mainly because the
customer for auto parts is Toyota Motor Corporation itself; KTTM is limited to
domestic market only.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Lakshmi textiles group is the major competitor of KTTM for textile industry.

SOME VENDERS OF KTTM are

 TICO
 KSNI,JAPAN
 SKF
 EXMPLOR NIHOM

CUSTOMERS OF THE KTTM FOR THE TEXTILE DIVISION i.e. FOR RXI 240
AND RXI 24e are:

 VARDAMAN GROUP.
 RAJAPALYEM GROUP.
 AMIT SPINNING.
 INDIRA GANDHI MAHILA.
 KAVERI YARNS.
 PEE VEE TEXXTILES.
 RUBY MILLS.
 VALLI TEXTILES (loyal group).
 WELSPUN INDIA LTD.
 HANIL ERA TEXTILES etc.

Except the above mention vendor there are several other vendor and customers
of KTTM.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

FUNCTIONS OF MARKET AND SERVICE DEPARTMENT:

 To meet the customer and take the quotation from the customer.

 Negotiation between customer and marketing department.

 Fix the final price and product design.

 Issue the quotation to material department; they will do the rest of the
work.

 If the customer wants to buy a machine from KTTM. They have to pay 10%
of the amount to conform the order. Remaining 90% of the order amount is
received from the before 7 days prior to the dispatch of the machine.

 After the dispatch of the machine they will depute engineers to installation
work in customer plant or factory.

 They will complete the work within 10 days and give the training to the
customer about the operating of machine.

 After the machine is installed engineer of KTTM visits the customer 3 times
in a year.

 KTTM gives a warranty to their product for 12 month from the installation
of machinery or 15 months from the dispatch date of the machinery
whichever is earlier.

STRUCTURE OF MARKETING-SERVICE DEPARTMRNT

General Manager of Marketing

Executives

Executives assistant
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Executives assistant

Delhi Coimbatore Mumbai

Assistant Manager Assistant Manager Assistant Manager

Service engineer Executive Assistant

Executive Assistant Executive Assistant

Executive Assistant
Executive Assistant

Executive Assistant
Executive Assistant

FINANCE DEPARTMENT

Finance is the important department in the organization. It plays an important role


in the organization. Finance is the life blood of each and every business.
Management of financing is planning, controlling firm’s financial resources.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Finance is the art of raising and spending the fund. It is the master key which
provides excess to all resources for being employed in manufacturing activities.

General Manager of the finance department is Mr T R NAGARAJ He is in


company since 1997. Chief financial officer of the company is Mr T SUZUKI. this
department functions for the both transmission division and textile division.

According to the financial division total investment made on textile division in the
beginning was Rs.80 cores and for auto transmission part is Rs.100 cores.
Separate account is maintained for both the product in KTTM in self generated.

Account department is paying vital role by providing and maintains past and
present transaction and the entire details of each and every financial activities of
the company

OBJECTIVES:

 To maintain all the book of accounts and other financial document.


 To provide accurate and complete systematic information of financial
activities.
 To prepare periodic financial statement of the company like profit and
loss A/C and balance sheet.
.

FUNCTIONS:

 Maintenance of receipts and payments


 Preparation of sales tax returns
 Maintenance of various ledger like;
 Computation of annual balance sheet
 Profit and loss A/C
 Computation of income tax returns
 Cost account maintenance
 Trial balance
 Trading account
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

 Collection of funds from the customers is to whom the goods are sold
 Making proper payment to parties from whom raw materials is
purchased
 Preparation of monthly cash flow, cost accounting
 Costing and inventory maintenance, they use weighted moving
average method
 Fund management
 Cash and bank transaction
 Export oriented functions
 Budget for each department or allocate the fund to each department
 Preparation of monthly trial balance and profit and loss account,
balance sheet

AUDITING:

They have two type of audit work;

 Internal auditing and


 External auditing

KTTM doing internal auditing four times in a year within organization. This auditing is
doing internal auditor of the company.

They are also doing the external auditing one time in a year or once on six month,
auditing work is carried by external auditor and they are not the company auditor.

BANK OF KTTM:

 State bank of India


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

STRUCTURE OF FINANCE DEPARTMENT:

Chief finance officer

General Manager

Senior Manager

Assistant Manager

Executives Executives Executives

EMPLOYEES OF FINANCE DEPARTMENT:


In a finance department they have 13 employees, each one doing different
functions of the finance department.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

HUMAN RESOURCE DEPARTMENT

Functions of Human Resource Department:


 Recruitment and selection
 Training and development
 HRIS (Human resource information system)
 Industrial relationship
 Employee welfare
 Personnel administration
 Health and safety
 Communication System.

THE PROCESS FOLLOWED BY KTTM FOR RECRUITMENT:

 FRESH ENGINEERS:

For recruiting the fresh engineers, company places the advertisement.


Candidate who applies for the job are short listed for the written exam, written
paper includes technical paper. Sometimes questions related to general
awareness are also included.

 Experienced engineers:

For the recruitment of the experienced engineer’s only interview is taken


experienced engineers do not have to appear for the written test. Once
employee is selected in the interview, he undergoes induction programmed
and then training.

 TRAINING AND DEVELOPMENT:

Training is given to the recruited employee. KTTM follows on the job training
method. Different type of training is given to the B.E graduates, where as two
year training is given to the diploma holder. One year training is given to the
employee having any other qualification.

HRIS (Human Resource Information System)


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

KTTM follows HR system for performance appraisal and manpower


development since the year of establishment of the company it follows this
method in a particular format. This is referred as PPR (PERFORMENCE
PLANNING AND REVIEW) inside the organization.

INDUSTRIAL REALATION:

The main function of HR department is to maintain good relation through the


personal policies. This is done by educating the employees about various
labour laws and by developing good communication skill in them.

EMPLOYEE WELFARE:

1. CANTEEN:

KTTM has its own canteen within its campus. This canteen is only for the
employees. Employees have this facility at the subsidized rate i.e. 1200 p.a.
and for non supervisors Rs3000 p.a.

A canteen committee formed by employees’ administrators all its function.

2. TRASPORT FACILITY:

Transport facility is provided to the employees working at KTTM. This facility


is provided at a concession rate of Rs 1200/-from non supervisory and
Rs3600/- per annum. Transportation committee of the employee is formed to
administer this activity.

3. UNIFORMS:

Two sets of uniform one pair of shoes one pair of socks and two caps are
provided to the employees every year.

4. ANNUAL SPORTS AND CULTURAL DAY:


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Company celebrates incorporation day on 14 th August every year. It also


conducts sports and cultural activities as a part of incorporation day
celebration KTTM has house magazine (KTTM NEWS). This is published
quarterly.

Employees are free to write any article or poem in this magazine. An editorial
committee from by the employees will review all the articles and publish in the
magazine.

5. ASSISTANCE SCHEME:

KTTM provides emergency assistance to their employees. It provides


financial assistance to their employees. KTTM gives loan for house building,
marriage of employee’s daughter etc at a nominal rate of interest.

To avail this facility no guarantor is required.

PERSONAL ADMINISTRATION SCHEME:

Electronic card swapping system is used to record the attendance of the


employees. To control the absenteeism in the organization; KTTM follows
leave encashment scheme in the organization.

HR department takes care of the wages and salary of the employees.

Various retirement schemes offered by the organization are

PF scheme

Gratuity

Superannuation

HEALTH AND SAFETY:


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

KTTM gives importance to the health and safety of the employees. Hence it
has appointed a doctor who visits the office daily. Two medical assistants are
working shift wise. It has the tie up with Sagar Apollo hospital and SUHAS
hospital for any emergency.

KTTM takes the pre employment medical exam of every employee before
recruiting any candidate.

Routine check up of the employees is done in every 2 years. Employees


working in painting department, forklift department have to get the check up
done in every 6 months. Canteen people are also provided with check up on
basis.

GOVERNMENT AND STATUTORY LAWS:

Department functions in conformation with laws implemented by the


government. It tries to maintain the function of the company as per the
factories act wages act payment of wages act workmen compensation act.

COMMUNICATION SYSTEM:

KTTM follows a strong mode of communication inside the organization.


Monthly information sharing meeting is conducted to share the information
with all employees. Notice boards are kept in each division of the
organization. Various symbols showing directions are also seen inside the
company. Evident from the fact that circular symbol with arrows is painted on
the workshop floor. This indicates the flow of movement of the operator on
that particular machine.

CLASSIFICATION OF WORKMAN:
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

The workman of the company is classified as

PERMANANT WORKMAN:

PROBANATIONER WORKMAN:

TEMPORARY WORKMAN:

CASUAL WORKMAN:

TRAINEE:

APPRENTICE:

LEARNER

BADLI:

PART TIME:

ATTENDANCE:

WAGES:

.WORKING HOURS:

.ACCIDENTS:

.SAFETY:

.TERMINATION:

.ABSENCE WITHOUT LEAVE:

.OVERTIME:

.PAID HOLIDAYS

DESIGN DEPARTMENT
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Design can be defined as the process by which we generate ideas in


response to a certain need and then carry out their transformation optimally in
reality.

STEPS IN DESIGN:

*Identification of need.

*Background research.

*Goals statement.

*Task specification.

*Synthesis.

*Analysis.

*Selection of details design.

*Prototyping and testing.

*Production.

FUNCTION OF DESING DEPARTMENT:

* They release the specification (design of the product) to a marketing


department which is available in the department.

* Marketing department take the order from the customer on the basis of
specification given by the design department.

* After taking order design department issues the bill of material (BOM) to a
PPC department. In BOM they mention about raw material requirement
process of the production design of the product etc...

STRUCTURE OF DESIGN DEPARTMENT:


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Head of the department

Assistant manager

Trainee engineer Trainee engineer

MATERIAL DEPARTMENT

The core of management function lives in guiding, directing and controlling the
efforts of that entire home being employed in the organization.

FUNCTION:

*Material department take the rough schedule for a year from the PPC
department.

*After receiving the schedule they will issue the purchase order to his
vendors.

*PPC department issues the schedule which is for that next month
requirement of the material.

RECEIPT AND EVALUATION OF QUOTATION

Quotation receipt
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Comparison & correspondence

Discussion & correspondence

Short listing

Finalizing vendor

Release purchase order

Ordering system

After issuing purchase order from the material department the vendor issues the
invoice copy when he sends materials to the company. The invoice copy will come
with a material,

In the purchase order they mention the

*Part number.*Part name.*Price.*quality*Last date for sending materials.

STRUCTURE OF MATERIAL DEPARTMENT:

Manager
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Senior Manager Senior engineer

Senior executive

Assistant Assistant

STORES DEPARTMENT

The word stores refer to a place or building where materials are kept, it is the
place of proper receipt, preservation safe custody issue and accounting of
material stores is maintained. It can be raw material, semi finished goods,
finished goods or packing items, spares etc.

The main objective of stores department is to provide a service to the


operating functions and services should be provided in most economical
manner, The main business of stores is to receive store and account the
material.

STORES FUNCTION AND PROCEDURES:

 Receipt and inspection of materials.


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

 Storage and preservation.

 Material handling.

 Issues

 Dispatch of goods to job work vendor

STRUCTURE OF THE STORE DEPARTMENT

Store manager

Senior store officer

Supervisor
Supervisor

Associates
Associates

SWOT ANALYSIS
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

STRENGHT

 They are large scale manufacturers and suppliers of textile machinery.

 They give more concentration on speed up! Change and challenge,zero defects.

 They have good reputation in the market

 They are recognized by their quality product

 They have efficient and well qualified employees

 The plants are fully provided with least production and testing equipments

 They have provided a healthy environmental to his employee

 They follow standard system for all activities

 They have a well established sales and services network

infrastructure facilities are well developed within organization

 KTTM has excellent R&D facilities

 They give 100% quality of the products.

 Availability of low cost and skilled manpower, provides competitive advantage to


the industry
 They provide free treatment for employees.
 Abundant Raw Material availability that helps industry to control costs and
reduces the lead-time across the operation.

 Availability of Low Cost and Skilled Manpower provides competitive advantage to


industry

WEAKNESS
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

 Cost of maintaining the standard is more

 Less use of plant capacity

 Less public transport facility.

 Higher employee turnover.


 Market Condition.
 Lack of communication between employee and employees.
 Absence of research and development culture.
 Lack of synergies between Govt. support institutions and practical
market.
 Lack of standardization and quality control.
 Non-sophisticated marketing sense. (branding & grading).
Unorganized vendor base.
 Limited access to information (availability of finance, technological know
how & Govt. regulations).
 Indian Textile Industry is highly Fragmented Industry.

 Lower Productivity in various segments.

 Lack of Technological Development that affect the productivity and


other activities in whole value chain.

 Infrastructural Bottlenecks and Efficiency such as, Transaction Time at


Ports and transportation Time.

 Unfavourable labour Laws.

 Lacking to generate Economies of Scale.

 Higher Indirect Taxes, Power and Interest Rates.


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

OPPORTUNITY:

 There is no restriction for movement of product in the world due to globalization

 There is no sales tax and excise duty on exports

 There are many foreign countries still to be covered

 To diversify their business to FMGC market

 Opportunities to enter the IT field

 Less economic fluctuations.


 Large, potential domestic and international market.
 Skilled workers are available..
 Efficient – abundant but now requires fine thing.
 Earnings – through effective cost control.
 Growth rate of Domestic Textile Industry is 6-8% per annum.

 Large, Potential Domestic and International Market.

 Product development and Diversification to cater global needs.

 Increased Disposable Income and Purchasing Power of Indian Customer open


New Market Development.

 Greater Investment and FDI opportunities are available.

 Lesser sophisticated African markets.


 Research and development and reverse engineering.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

THREATS:

 More competition from MNCs

 Many foreign textile companies entering the domestic market because of


globalization

 Heavily depending on supplies (vendor)raw material

 New regulation impacting exports

 Change in the domestic or regional market and the rule of business.

 The superior quality of the products of the competitors is also a challenge for the
company.

 The other companies in the same industry provide better wages and salaries
structures to attract the potential workers.

 To make balance between price and quality.


 Geographical disadvantages.
 Competition from other developing countries, especially China.

 Continuous Quality Improvement is need of the hour as there are different


demand patterns all over the world.

 Elimination of Quota system will lead to fluctuations in Export Demand.

 Geographical Disadvantages.

 International labour and Environmental Laws.

 To balance the demand and supply.

 To make balance between price and quality.


KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

 Lagging in technology, hence producing substandard goods that hamper


consumer perception about local engineering products.
 Uncertainty in inputs costs.

3.2 APPLICATION OF Mc KENZIE 7s MODEL TO KTTM.

The 7s model is known as Mc KENZIE’S 7sS, this is because the two person
who developed this model, Tom peter and Robert waterman, have been
consultants at Mc KENZIE’S and COMPANY at that time they published their
7S model in their article “Structure is not organization and in their books “the
art of Japanese management” and “In search of excellence”.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

FINDINGS AND SUGGESTIONS:

 Since performance appraisal is the most effective tool for motivating the
employee hence this task should be carried out effectively. It is a strategic,
integrated process that delivers sustained success by improving the
performance of the people.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

 OSS method should be followed for proper assessment of the employee; it


includes.

 O: objective assessment. It is target oriented.

 S: subjective assessment. Includes employee’s potential to grow, ability to


change, etc.

 S: sharing. It includes 360 degree feedback.

 Employee should be treated as a part of the organization. Managers should


be coach rather than a judge.

 Instead of fixing the yearly target and then doing the appraisal. Monthly
targets should be fixed for the employees. This will help in having a better
control over employees.

 Performance appraisal should be taken seriously and it should be done twice


in a year.

 Session of motivational talks should be conducted. This will help in improving


the communication system in the organization.

 360 degree method or the peer appraisal method should be followed where in
employees get the chance to do their self appraisal. Self appraisal is a tool
which helps the employee to do a self thinking on his achievements,
understanding the factors that influence his performance and introspect on his
preparedness for the job.

 Proper feedback should be given to the employee.

CONCLUSION:

KTTM is a well growing company in the market of textile machinery along with many
other fields. KTTM itself has many units, and also has various departments such as
marketing and service, design, production planning and control, material, finance,
HRM etc.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

As every organization KTTM has its own goal and policies, to achieve this goal all
the department work together, these department are inter linked and have a written
communication in the form of work orders, which are studies by each department
thoroughly so as to perform the work.

Design and development department prepares the design of the product and then
send its design to planning department, the design are prepared according to the
instruction of the clients.

Production planning and control department plans for the production of product,
according to the plant undertakes the process according to the plan undertakes the
process of production and brings out the finished products.

Quality assurance department checks the quality of the products, before they are
delivered.Painting and packing department loads after the painting and packing of
the finished products. According to the needs of the clients and also keeping in mind
the safety of the product during transportation.

From the overall study of the organisation in the kirloskar toyoda textile machinery
Ltd it is quite clear that export has extended its own wings in the textile industry
successfully. Now it has grown level by manufacturing and supplying the textile
machinery to the foreign countries as per the order and requirement of the buyers.

It has well advanced and has automated machinery in its production units and skilled
manpower for manufacturing the textile machinery in most significant and effective
manner in a short period of time.

All the employees guided and controlled by the supervision of the management
team. All the management team members are well qualified and experienced
persons to carryout business operations in a most profitable manner and generating
new opportunities for the expansion and the development of the business to the
global level.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

Learning Experience

The MBA course has the “Internship cum Organisation study” as the part of our
curriculum to make the students experience the actual corporate world and learn its
ways of functioning. In this competitive world this kind of an approach is extremely
indispensable. Students coming out, as MBA’s would be ready to have an interface
with the corporate world with determination, confidence and competence. Today’s
corporate world demands for all these qualities, without which facing the corporate
world is a difficult task.
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

It was a great experience at kirloskar toyoda textile machinery Ltd, great knowledge
base and an excellent training program. All staff members at kirloskar toyoda textile
machinery Ltd were co-operative. The program helped me in understanding the
various functions of the company.

The organisation provides good work culture and better growth opportunities, which
has attracted the prospective employees to apply for its various positions. They also
encourage the creative ideas of the young generation and gives better opportunities
to bring out the innate talents.

The functions of kirloskar toyoda textile machinery Ltd as far as unveiled by the
study are satisfactory. The management has succeeded in effectively synchronizing
the factors of production land, labour and capital. All the department of the company
is functioning very effectively. These exists a cordial relationship between employees
and employer in the organisation. All the departments of the organisation work on the
basis of quality management system.

Bibliography

Books:

 Aswathappa K (2005), Human Resource and Personal Management (3 rd


Edition), Tata McGraw-Hill
KIRLOSKAR TOYODA TEXTILE MACHINERY PVT.LTD.

 Shashi K. Gupta and Rosy Joshi, Organizational Behavior, Kalyani


Publishers.
 P. Subba Rao, Human Resource Management, Himalaya Publications.

Reports:

 Audit report of the finance department.


 Company’s files.

Magazine:
 TALK magazine

Websites:

 www.TOYODAINDUSTRIES.com
 www.google.com

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