A STUDY ON OVERALL SALES AND SERVICE DEPARTMENT OF ANAMALAI BUS TRANSPORT (P) LTD

SUMMER INTERNSHIP PROJECT

PROJECT REPORT Submitted by

K.SANJU (108001168023)
in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

SASI CREATIVE SCHOOL OF BUSINESS COIMBATORE 641 032.

AUGUST 2011

SASI CREATIVE SCHOOL OF BUSINESS COIMBATORE -641 032 Department of Management Studies INTERNSHIP PROJECT WORK

AUGUST 2011

This is to certify that the project entitled SUMMER INTERNSHIP PROJECT WORK

is the bonafide record of internship project work done by K.SANJU

Register No: 108001168023

of MBA during the year 2010-2011.

--------------------Project Guide

----------------------------Head of the Department

Submitted for the Internship Project Viva-Voce examination held on___________

----------------------------Internal Examiner

--------------------External Examiner

DECLARATION

I affirm that the internship project work titled A STUDY ON OVERALL SALES AND
SERVICE DEPARTMENT OF ABT(P) LTD being submitted in partial fulfillment for the

award of MBA is the original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other University.

K.SANJU 108001168023

I certify that the declaration made above by the candidate is true

Signature of the Guide

L.R.SIVA KUMAR Assistant Professor, SASI CREATIVE SCHOOL OF BUSINESS

iii

ACKNOWLEDGEMENT

I give all credit to the almighty God for guiding me throughout summer project and helping me to accomplish project in due time and with precision overcoming several obstacles. I express my sincere gratitude to our beloved Managing Trustee Mr.Raj Deepan Swaminathan I thank our Dean Prof.J.Srikanth B.Tech(IIT-M), PGDM(IIM-B) for lending me a helping hand all through the accomplishment of my summer project. I thank my guide Mr.L.R.Siva Kumar MBA who helped me for completing my summer project successfully. And above all I extend my sincere gratitude to ABT staffs and friends who stood by me during hard and good times in entire course of my summer project.

iv

TABLE OF CONTENTS CHAPTER NO. TITLE

LIST OF FIGURES & CHARTS LIST OF TABLES LIST OF ABBREVIATIONS 1 1.1.AIM 1.2.HISTORY 1.3.GROUP OF COMPANIES 1.4.ABT DIVISION 1.5.BRANCHES 2 COMPANY PROFILE 2.1.ABTs PROFILE 2.2.NUMBER OF DEPARTMENT 2.3.INCHARGE OF COMMERCIAL VEHICLES 2.4.COMPANY ADDRESS 3 3.1.HR 3.2.SALES 3.3.SERVICE 3.4.SPARES 4 5 SUGGESTIONS CONCLUSION DETAILS OF DEPARTMENTS 5 14 22 25 27 28 3 3 4 4 INTRODUCTION 1 1 1 2 2

PAGE NO.

vi

LIST OF FIGURES & CHARTS

FIG NO.
3.1 3.2 3.3

NAME OF THE FIGURE

BASIC HR PROCESSES HUMAN RESOURCE MANAGEMENT OBJECTIVES OF HRMIS

PAGE NO.
5 6 9

LIST OF TABLES TABLE NO.

3-A

NAME OF THE TABLE

SETTLEMENT DETAILS

PAGE NO.
24

LIST OF ABBREVIATIONS

ABT LCV MHCV ICV HR CTC DO RO

ANAMALAI BUS TRANSPORT LIGHT COMMERCIAL VEHICLE MEDIUM and HEAVY COMMERCIAL VEHICLE INTERMEDIATE COMMERCIAL VEHICLE HUMAN RESOURCE COST TO COMPANY DELIVERY ORDER REPLACE ORDER

vi

CHAPTER 1 INTRODUCTION

1.INTRODUCTION 1.1.AIM: Always AIM for the moon and if you miss it, dont worry you will fall among the stars

The objective of the block placement training was to learn how the theoretical knowledge is implemented in the organization.

1.2.HISTORY: Sakthi group a unit of Rs 1200 crore headed by Dr.N.Mahalingam sakthi group has diverse interest in the field of sugar,industrial alcohol,foundry,plantation,truck and car dealership etc. sakthi finance has a network of 26 branches and specilised in retail distribution of finance products. ABT Industries Ltd was started as Gounder & Company in 1932, founded by Mr.Nachimuthu. In 1997,the name was shifted to ABT industries Ltd, chaired by Mr.N.Mahalingam, a leading industrialist in South India.ABT Industries Ltd (Ukkadam) is an automobile service industry, hands together with TATA motors.

1.3.GROUP OF COMPANIES: 1. Sakthi sugars limited 2. Sri Chamundeshwari sugars limited 3. Sakthi finance limited 4. ABT industries limited 5. Sri Bagavathi textiles limited 6. Sakthi soft drinks limited 7. N.Mahalingam & company 8. The Gounder & company 9. Chennai bottling & co limited 10. Sakthi automobiles 11. Annamallais engineering 12. The Anamallais retreading corporation 13. The Anamallais retreading company 14. ABT X travels

1.4.ABT DIVISIONS: 1) Parcel service division 2) Maruti dealership division 3) Auto service division 4) Passenger service division 5) Petrol bunk division 6) Textiles 7) Wind energy division

1.5.BRANCHES: 1. Coimbatore 2. Palladam 3. Erode 4. Nagerkovil 5. Theni 6. Thuthukudi 7. Sivakasi 8. Calicut 9. Kakaivayal

CHAPTER 2 COMPANY PROFILE

2.COMPANY PROFILE
2.1.ABTS PROFILE: BASIC INFORMATION

Company Name: Main Dealer:

ANAMALAI BUS TRANSPORT (P) LTD TATA-COMMERCIAL VEHICLES

Number of Employees: 350

COMPANY STARTED: 1932

BOARD OF DIRECTORS: Nachimuthu Gounder(Founder) N.Mahalingam(Chairman) N.Balasubramaniam(M.D.) M.S.Aruchami(President)

TATA COMMERCIAL VEHICLES

LCV

M & HCV

ICV

WINGER

2.2.NUMBER OF DEPARTMENTS: SALES SERVICE SPARES 3

2.3.INCHARGE OF COMMERCIAL VEHICLES: J.P.Christoper Rajasekar-General Manager

DIVISION UNDER CONTROL: Ukkadam Palladam Erode Ooty

2.4.COMPANY ADDRESS: Tata Motors Office, Hotel Aryas,2nd Floor, Indian Airways Building, Trichy Road, Coimbatore-55

CHAPTER 3 DETAILS ON DEPARTMENTS

3.DETAILS ON DEPARTMENTS OF ABT

ORGANIZATIONAL FUNCTIONS & ROLES: ABT is running successfully through the following departments HR Sales Service Spares Lets see the functions of each departments of ABT 3.1.HR: 3.1.1 DEFINITION Human resources may be defined as the total knowledge, skills, creative abilities, talents and aptitudes of an organization's workforce, as well as the values, attitudes, approaches and beliefs of the individuals involved in the affairs of the organization. It is the sum total or aggregate of inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the persons employed in the organization.

FIGURE.3.1.BASIC HR PROCESSES Also human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, 5

business sectors or even whole nations. Human resources is also the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials "HR". 3.1.2 KEY FUNCTIONS Human Resources may set strategies and develop policies, standards, systems, and processes that implement these strategies in a whole range of areas. The following are typical of a wide range of organizations:

Maintaining awareness of and compliance with local, state and federal labor laws Recruitment, selection, and on boarding (resourcing) Employee record-keeping and confidentiality Organizational design and development Business transformation and change management Performance, conduct and behavior management

FIGURE.3.2.HUMAN RESOURCE MANAGEMENT 6

3.1.3 HR-OBJECTIVES OF ABT: ABT has 3-objectives. They are Training [on job & off job] Absenteeism Employee motivation

To calculate absenteeism: Absenteeism is the term generally used to refer to unscheduled employee absences from the workplace. Many causes of absenteeism are legitimate--personal illness or family issues, for example--but absenteeism also can often be traced to other factors such as a poor work environment or workers who are not committed to their jobs. If such absences become excessive, they can have a seriously adverse impact on a business's operations and, ultimately, its profitability. Formula used by ABT is., ABSENTEEISM = TOTAL WORKING DAYS MAXIMUM DAYS WORKED

ATTRITION RATE: Attrition is the reduction in the number of employees through resignation, retirement and death. Attrition rate is the percentage of people leaving the organization, people left i.e. relative to total number of people who have worked for the organization under consideration. EMPLOYEE MORALE: Employee morale stems from work related circumstances. The article in Entrepreneur suggests that some causes for low morale can be negative events (firings, layoffs), conflicts between co-workers and poor relationships with managers.

ACCIDENT RATE: Accident rate is defined as the number of worker-days lost as a result of disabling injuries per thousand worker-hours of exposure. EMPLOYEE TURN-OVER RATIO: An important ratio that looks at a company's sales in relation to the number of employees they have. It is calculated as:

CTC: CTC -- Cost To Company.

It means your pay package/monthly salary, which the company has to shell out every month for you.

Current CTC - The salary that employee receive currently/presently Expected CTC- Salary that employee expect from the company that he/she are applying to.

MATERNITY BENEFIT: The meaning of maternity benefit - n ( Social Welfare ) ( in the British National Insurance scheme ) a payment ( maternity allowance ) made to a pregnant woman who usually works but does not qualify for statutory maternity pay, normally from 11 weeks before confinement for a period of 18 weeks; there is also a flat-rate benefit ( maternity grant ) for those on low incomes

FIGURE.3.3.OBJECTIVES OF HRMIS HUMAN RESOURCE DEPARTMENT:

Advising management on effective use of human resources. Man power planning. Recruitment. Training and Development. Maintenance of records and books.

MANPOWER PLANNING: Planning for human resource is more important than planning for any other resource. The planning is done to minimize imbalances caused due to non- availability of human resource of right kind , right number in right time and right place.

RECRUITMENT: The departments will provide their man power requirement forms, which constitutes about the requirement and the qualifications of the required man power. Direct methods are adopted for recruitment concern for direct recruitment vacancy or advertisement through news paper especially in the middle level management code, of laid down by the management. The departments will provide their man power requirement forms. This constitutes about the requirement and the qualifications of the required man power. Manpower planning is made every financial year based on the business plan for the year. 9

Once the required number and kind of human resource are determined , the management has to find the places where required human resource are will be available and also find the means of attracting them towards the organization. Based on the job profile requirement , resumes of candidates are collected through the i. ii. iii. iv. Advertisement in newspaper / periodicals Placement agencies Employee Referrals Campus recruitment

SELECTION: The applications received are registered in the application bank and utilized as and when required. The selection will be based on the requirement and suitability to the post.

SELECTION CRITERIA:

Age Communication skill Physical stamina Leadership skill Social and human relation skill Formal education Technical education Previous experience Social status Suitability to the post

METHODS OF SELECTION:

Attitude test Intelligent test Attitude test Achievement test Personal interview Group discussion

10

TRAINING: The selected candidates are given training according to the job category. Training enables the employee to improve his knowledge, skill and ability to perform his job in an effective manner.

TIME OFFICE:
o o o o o o o o o

Attendance Leave records ESI - Employees State Insurance PF - Provident fund Welfare -Uniforms, Shoes, Ear plugs, Apron, goggles, gloves etc., Salary Payment Bonus First Aid box Canteen

TRAINING AND DEVELOPMENT: Sending training needs identification to all the Heads of the Department to identify the training needs based on

organization goal, Department goal, customer needs, customer feedback, introduction of new technology, transfer, Promotion etc. Renew of training needs identified & prioritizing Preparation of Annual training Calendar & Monthly Calendar Setting Training objectives & Identification & methodology for effectiveness Assessment Conduct Training Assessing the effectiveness of training Monitoring the effectiveness

Leave Wage & Salary Administration

Leave Administration like leave slip permission slip or on duty slip / late comers list will be prepared. Maintain and update all the files and records related to attendance maintainance. Assisting the Accounts department at the salary calculation, on time settlements of accounts and bill prevailing. 11

DISCIPLINARY PROCEDURES: To Hr/Administration Misconduct Basic Complaint Preliminary enquiry Show cause notice / change sheet (with in 48Hrs they should explain) Explanation Appointment of enquiry office Enquiry proceedings Findings II Show cause notice Explanation of II show cause notice Final order.

STATUTORY RECORD MAINTENANCE :

Maintenance of the employee database. Maintenance of the employee personal file and other file. Office Administration. Monthly payroll inputs. Maintenance of record to be submitted to the Inspector of factories ect. Maintenance of muster role salary slip act.

EMPLOYEES COUNSELLING SERVICES:

Absenteeism Alcoholism Loans Family Problem Other Personal problems

12

ACTIVITIES: The trainee was involved in the following activities, a) The trainee helped in the payment of salary like writing the names and the amount on the salary cover. b) The trainee has been involved in the data entry work c) The trainee helped in scrutinizing the resumes. d) The trainee helped in the recruitment procedure.

13

3.2.SALES:

Total amount collected for goods and services provided. While payment is not necessary for recognition of sales on company financial statements, there are strict accounting guidelines stating when sales can be recognized. The basic principle is that a sale can only be recognized when the transaction is already realized, or can be quite easily realized. This means that the company should have already received a payment, or the chances of receiving a payment is high. In addition, delivery of the good or service should have taken place for the sale to be recognized.

ABT is currently using SALES MANAGER concept The role of sales manager here is: Interaction with customers Preparing schedule for every month Focus on number of quantity dispatching The sales process is carried out through commercial vehicles of TATA motors.

14

They are: TRUCKS

TRUCKS

WINGER AMBULANCE PASSENGER

15

BUS PASSENGER BUS SCHOOL BUS

TATA VENTURE

16

MINI TRUCKS

TATA 909FX

17

TATA 407

TATA ACE

18

LCV ICV

: Light Commercial vehicle : Inter mediate commercial vehicle

MHCV: Medium and heavy commercial vehicle

3.2.1.MONTHLY SALES: o o o o TRUCKS: 40-50 BUS: 15-20 MINI TRUCKS: 40-50 WINGER MODAL TOURIST VECHILES: 30-40

BUS MODELS: o 16-26 (LCV) o 26-40(ICV) o 40-54(MHCV)

WINGER MODELS: o WINGER AMBULANCE o WINGER PLATINUM o WINGER: 9+DRIVER 12+DRIVER 13+DRIVER TRUCK MODELS: o o o o LPT-1413/42 LPT-116/42 LPT-1513/48 LPT-1518/48

3.2.2.SALES PROMOTION ACTIVITIES: Demonstration(mela) Paper advertisements Financial meet Service camp 19

3.2.3.SALES PROCESS:

C0 : ENQUIRY

C1 : QUOTATION

C1A : FINANCE PROCESS

C2 : ADVANCE GIVEN TO DEALER

C3 : BILLING OR DELIVERY

3.2.4.COMPETITORS: TATA (LCV/ ICV/ M&HCV) EICHER SWARAJ MAZDA FORCE MOTORS ASHOK LEYLAND MAN

20

3.2.5.FINANCIAL SUPPORTERS:(Insurance) Cholamandal Royal sundaram National insurance New India Reliance Bajaj Allianz United India

FINANCE: DO delivery order Tata motor finance limited Sundaram financial limited Cholamandal financial limited Mahindra Kotak Mahindra Indus bank

RO replace order

3.2.6.SALES INCHARGE: S.Rajaramantruck managersales Mr.Vivekanandbus wingersales

LOB: Line Of Business LCV: M.Velmurugan ICV: K.Shanmugam M&HCV: K.Rajamanikam

21

3.3.SERVICE:

Total service is under the control of TATA MOTORS Minimum of 30 vehicles have to be taken for service per day. 90% vehicles have to delivered compulsory from 30 vehicles Service functions through online

3.3.1.FROM ENTRANCE: Vehicles model In-time

3.3.2.SECOND SECURITY: Job-card Vehicle complaints e.g., oil, brake, engine, light, scratches, kilometer, tyres Full service General check up Out-time Manual Gate pass (must submit to main gate) 3.3.3.WARRANTY POLICY: TATA magic IRIS 1 year or 36,000 kms 22

TATA Super ACE 1 year or 50,000 kms

TATA Winger 18 months or 1,50,000 kms

TATA mini trucks (407, 410, 709, 712, 809, 909, 912, 407CNG) 36 months or 3,00,000 kms

TATA Trucks (1109, 1512) 18 months or 1,50,000 kms

TATA Trucks (1510, 1613, 2515EX, 2516EX, 2518EX, 3118) 18 months or 1,50,000 kms or 2000 hrs

TATA Diesel vehicles with TATA Cummins engine (1510C, 1512C, 1610C, 1612C, 4021C) 18 months or 1,50,000 kms or 2000 hrs

TATA Diesel vehicles with TATA CNG engine (1515, 1510) 18 months or 1,50,000 kms

TATA LPK 2530C 12 months or 1,00,000 kms or 5000 hrs

3.3.4.ACCIDENT CLAIMING: If any accident vehicle come in to the workshop they collect the information and identify all damages and note the damages and give them cost of the replacements spare parts after that insurance company. Minimum period of time 20 days to deliver the accident vehicle

23

3.3.5.SERVICE SATISFACTION: Customer satisfaction is done by TATA MOTORS-MUMBAI directly.

3.3.6.SETTLEMENT FOR LABOUR CHARGES: LOCATION Metro cities[C1] Major cities [C2] Other cities TABLE.3-A.SETTLEMENT DETAILS LABOUR RATE/MAN HRS IN Rs. 110.00 90.00 80.00

ABT MOTIVE:

24

3.4.SPARES:

Spare parts, are extra parts that are available and in proximity to a functional item, such as an automobile, boat, engine, for which they might be used for repair. Economic considerations Spare parts are sometimes considered uneconomical since:

the parts might never be used the parts might not be stored properly, leading to defects maintaining inventory of spare parts has associated costs parts may not be available when needed from a supplier

But without the spare part on hand, a company's customer satisfaction levels could drop if a customer has to wait too long for their item to be fixed. Therefore companies need to plan and align their service parts inventory and workforce resources to achieve optimal customer satisfaction levels with minimal costs. COST-EFFECT COMPROMISE In many cases where the item is not stationary, a compromise is reached between cost and statistical probability. 25

Some examples:

an automobile carries a less-functional donut tire as replacement instead of a functionally-equivalent tire. a member of a household buys extra light bulbs since it is probable that one of the lights in the house will eventually burn out and require replacement. a computer user will purchase a ream of computer paper instead of a sheet at a time. a race car team will bring with them to the race track another engine, just in case. a ship carries spare parts for its engine in case of breakdown at sea.

CONSIDERATIONS: If the spares available, it will be immediately replace. Else, new spares will be ordered and purchased from TATA MOTORS

26

CHAPTER 4 SUGGESTIONS

4.SUGGESTIONS

I suggest 2 things to ABT for its proper functioning. They are., SALES: At Kerala, 300 vehicles sold per month But in Ukkadam, only 150 vehicles sold per month This is overcome by proper arrangement of loan facility and thereby increasing sales incentives SERVICE: Improper delivery of service This has to be cleared by increasing number of labors SPARES: Lack of spare parts Inventory less This is overcome by proper warehouse management

27

CHAPTER 5 CONCLUSION

5.CONCLUSION ABT industries limited single minded pursuit of enhancing the quality of life has led to many diversifications. Today is a multifaceted corporate entity with interest in Automobiles, Hi-tech Engineering services, Health care and Education. During this training period I have learnt a lot of information related to the Spares, Service, Personnel, Sales and financial affairs of ANAMALAI BUS TRANSPORT (P) LIMITED. This period was extremely useful for me to gain some practical knowledge about the industry.

28