AUTOMOBILE INDUSTRY

KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT STUDIES, HARIHAR SESSION : 2011-2013

INDUSTRIAL INTEGRATION REPORT

MANUFACTURING INDUSTRY: MAHINDRA & MAHINDRA LTD.,KANDIVILI SERVICE INDUSTRY: HEXAWARE TECHNOLOGIES,NAVI MUMBAI

SUBMITTED TO:

SUBMITTED BY :

PROF. E. ANAND

NIRAJ KHEMANI(64) NADEEM BADAR(60) NIBIR MAHANTA(63) PRATIK P.SAHOO(72)

OBJECTIVE OF THE VISIT
The main objective of the industrial visit was to know about the management processes that are practiced in the manufacturing and service industries, to understand how the operations, resources and people are managed in an industry, how the supply system of a company works and how the demand is met. We have been taught the theory related to the Balanced Scorecard model and Business Excellence Model in the class and the visit to the industries was so designed so that the processes that are practiced in the industry can be mapped as per the models and can be comprehended in a better manner.

To have an interface with the industry.

To understand the practical applications of the Business excellence model in manufacturing as well as service company.

To understand the practical applications of the Balance Score card model in manufacturing as well as Service Company.

To be able to relate the theoretical aspects learned in the class room with the actual work carried out in the corporate world.

An experience aimed at expanding our view about business and making us identify the dimensions that require attention on our part.

To make us understand the roles and responsibilities of different departments in an organization and the differentiation and integration of the same.

The visit also helped us identify the sector and department which each one of us might be more interested in joining in the future.

INTRODUCTION – MAHINDRA & MAHINDRA LTD. (AUTOMOTIVE SECTOR)
Mahindra & Mahindra Limited (BSE : 500520) is the flagship company of the Mahindra Group, a multinational conglomerate based in Mumbai, India. The company was set up in 1945 in Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed. After India gained independence and Pakistan was formed, Mohammed emigrated to Pakistan where he became the nation's first finance minister. The company changed its name to Mahindra & Mahindra in 1948.While Keshub Mahindra is the chairman of the company, Anand Mahindra is the Vice-chairman and the Managing Director . Mahindra & Mahindra was set up as a steel trading company in 1945. It soon expanded into manufacturing general-purpose utility vehicles, starting with assembly under license of the iconic Willys Jeep in India. Soon established as the Jeep manufacturers of India, M&M later branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors. Today, M&M is the leader in the utility vehicle segment in India with its flagship UV Scorpio and enjoys a growing global market presence in both the automotive and tractor businesses. It offers over 20 models including new generation multi utility vehicle XUV 500, Scorpio and Bolero. It formerly had a joint venture with Ford called Ford India Private limited to built passenger cars . Over the past few years, M&M has expanded into new industries and geographies. They entered into the two-wheeler segment by taking over Kinetic Motors in India. M&M also has controlling stake in REVA Electric Car Company and acquired South Korea's SsangYong Motor Company in 2011. The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its 'Global 200: The World's Best Corporate Reputations' list. Mahindra & Mahindra has grown from being a maker of army vehicles to a major automobile manufacturer of utility vehicles, passenger cars, pickups, commercial vehicles, and two wheelers, employing more than 1,00,000 people globally. The Mahindra and Mahindra automobiles unit mainly concentrates on SUV’s where they enjoy a market share of around 60%. Earlier in the range of 12 lakhs to 20 lakhs, there was no SUV in the market for the aforesaid range. To fill up the gap M&M came up with XUV-500 at a price of 14 lakhs. The product had a record booking of 8000 vehicles in 6 days. Mahindra & Mahindra also produces customized design vehicles. In

2003, when Anand Mahindra joined Mahindra & Mahindra Ltd., he implemented MOST technology to increase the efficiency of the employees and implemented Mahindra Quality System in Mahindra. The MOST Technology evaluates the time required for a particular work and thus, sets up the bench-mark to be followed around . Its tractors are sold on six continents. It has acquired plants in China and the United Kingdom, and has three assembly plants in the USA. M&M has partnerships with international companies like Renault SA, France and International Truck and Engine Corporation, USA. M&M has a global presence and its products are exported to several countries. Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd. It is also one of the major tractor brands in the world . Mahindra & Mahindra ltd. Has 7 plants . They are located in Kandivili, Igatpuri, Chakan, Zaheerabad, Nashik plant-I , Nashik plant –II and Haridwar . Kandiwali plant is the oldest plant of Mahindra, being set up in the year 1965 .The main products of this plant is Thar and Mahindra Bolero and Maxx pick-up vehicles. It also deals with manufacturing aggregates .The plant has got 6 Product units division. The company is about to launch Xylo minicido in the market. It has its own automated press shop. This company has the set up and capacity to produce personalized vehicle but the main hindrance is that it has a very small paint shop .Mahindra pickup van enjoys a market share of 72 % in its own field. Presently, Mahindra’s Kandiwali plant has a production capacity of 225 vehicles per shift per day, with a maximum capacity of 280 vehicles per shift per day, which the plant pulled off once on a high demand situation. It has the certification of QS 9000(1st Indian Auto company to receive), TS 16949 and 14000, TPM excellence award and Shram award certification. The Kandivali plant is spread over 2.2 million square feet area and can be broadly divided into 3 parts – Machining, Assembly and Foundry. The company works on 3 C model (comprehensive, compact, cost effective).Kandiwali plant produces axles for Scorpio and Bolero, state-of-the-art gear

manufacturing lines ,gear cutting and gear shipping. It has the best manufacturing gear plant in India. The engines are outsourced from Igatpuri plant to get advantage of octroi duty. The Kandivili plant has produced more than 50000 vehicles and is still going strong. It also has the vacuum furnace in its plant which is the first of its kind in India.

PRODUCTION (UNITS PER YEAR )

70000 60000 50000 40000 30000 20000 10000 0 f87 f07 f08 f09 f10 Series1

In the Financial Year 2010, there was drastic increase in the production because the employees and workers were asked to work for extra 2 hours daily without any increase in salary and the employees and workers group also agreed to the condition .

LEADERSHIP
Promise statements are made in every few years and then policies and strategies are made striving to achieve promise statements .A joint effort is been made from all the employees and workers to bring the strategies and policies into effect and yield results, and at the end of the targeted year, the promise statement is being reflected upon . For e.g. – promise statement 2006 and 2010 in the recent past, and presently promise statement 2013 and 2015 is effective now .This promise statements are made with synchronization of the long term vision – “To create a fully collaborative environment in which suppliers can deliver what the company exactly needs, when it needs it and at a competitive cost” and mission – “To create India’s largest automobile and automobile related product distribution network by providing dealers and customers with the largest choice of unique world class products and services” of the

company . Anand Mahindra has remarked – “We don’t have a group wide mission statement. Our core purpose is what makes us all of us want to get up and come to work in the morning” Leaders are able to motivate the employees and workers for the common good of the company and society .Leaders from product units, managers and union leaders would work out the common good of the employees, workers and company . For e.g. – In the financial year 201011 , the sales figures had increased to 64625 from 51258 in the year 2009-10,showing the increase in the manufacturing of the company as well, which is more than 20 % . This increase came about due to each employee and worker working overtime for 2 hours every single day without any monetary gains .This happened because of the ownership which the employees and workers took towards the company as the company and management did the same with the employees and workers . During the hard time like those of recession, the company didn’t look for job cut as an option , neither did they enforce pay-cuts on the employees and workers. The employees and workers in those times would have work for a maximum of three days in a week due to the drop in sales but the company never parted ways with its employees . So, its not hard to motivate the employees and workers around as they work integratively towards Mahindra and Mahindra family

Leaders involve employees and workers with themselves in the implementation of strategies and policies: All policies and strategies are discussed with all managerial personnel and staff. Managers evaluate where and how they can implement their policies and strategies. A plan of action is devised for each Department/Product unit. Policies and strategies are reviewed regularly. Contingency plans are devised in case the environment changes. Assessments of progress is carried out regularly by top-level managers. The Leaders in Mahindra & Mahindra make an Endeavour towards creating a good environment and team spirit within the business. The missions, objectives, strengths and weaknesses of each department/Product unit is analyzed to determine their roles in achieving the business’s mission.

Leaders ensure that all plans are consistent and that policies and strategies are aimed at achieving the same mission and objectives. Leaders ensure a contingency plan is in place, just in case ,the need arises . Leaders should be a good communicator, determined, sincere, honest, humble, passionate, positive, confident, wisdom full, motivator ,committed, responsible , decision-maker and courageous . A leader should know his/her employees and should look out for their well-being . Grievances, if any, for ant employee, workers is discussed between the top level managers and leaders, and sorted out . Grievances arising from an employee or worker of a particular department or product unit is sorted out by a meeting between Product unit manager, union leader(if a worker is involved) and management team would meet and discuss as to how serious the employee’s / workers grievance(s) is/are and what are the necessary steps that must be taken in order to come up with the solution .

STRATEGY
1> The employees are allotted five goals and the amount of performance he or she has given is analysed quantitatively. There are three basic standards set for meeting the goal. For ordinary achievement they are assigned L2, which means that they have achieved the set goals. A slight higher achievement sets them L3 standard and L5 is for exceptional performances. The salary appraisal is as per the goals achieved. For workers, they have an assessment program called PQCSDM (Productivity, Quality, Cost, Safety, Delivery, Morals). Every new idea in any of these sectors fetches them an “i -point” (innovation) which gets accumulated at the end of the year and the bonuses are allotted according to the i-points gathered.

2> Strategies of the organization are not followed on just one factor. There are many factors which contribute towards the strategy formation of the company. At Mahindra and Mahindra

the concept of long term planning through Promise Statement helps unite the company to achieve its goal in sync with the company’s vision and mission. The Promise statement of Mahindra:-The Promise Statement of Mahindra is formulated in sync with the vision and mission of the company and it projects a desired state of the company’s position in future. The Promise Statement takes into consideration the expected future market conditions, sales, and other such important aspects .It require that every employee of the company, from the foreman to the director works in sync to achieve the desired results as stated in the Promise Statement. 3> Every stakeholder of the company has basically one objective and that is the company succeeds and keeps giving returns. A company has basically five stakeholders .One of them are the shareholders who wants good dividends and capital gain and this is done through better performance of the company over the year resulting in profits which Mahindra has shown over the years. Another stakeholder is the Government which wants tax from the company and for the company to pay tax it is necessary that the company works profitably. Mahindra has been doing it regularly. Other stakeholders are the employees who want regular salary and bonuses and the company if running profitably does so and so is Mahindra. Another stakeholder is the community and the company is actively working towards creating a better society through its various programs. Investors also constitute a very important part of stakeholders as they are the one who have invested and they want returns from it. Mahindra is continuing to provide returns to its investors. 4> Mahindra’s dream is to become “The Maruti of SUV’s” and it has clearly started to do so by offering a SUV in almost all segments except one. That one segment is under five lakhs and Mahindra is planning to launch a SUV even in that segment!!! This segment of customers were earlier offered only small vehicles in this price range and for a car which is being billed as Nano SUV would offer Mahindra limitless opportunities. Mahindra is also planning to launch a mini-Xylo which would cater to the needs of the people who want to own something like Xylo but are not willing to shed that much of cash for it. Mahindra’s mini-Xylo is for those people.

BUSINESS EXCELLENCE APPROACH POLICY DEPLOYEEMENT
OTHER FUNCTIONS ALL FUNCTION IN THE SECTOR ROLE & RESPONSIBILITIES POLICY / OBJECTIVE PROCEDURE/ GUIDELINES PFC MANUFACTURING

DAILY MANAGEMENT

NEW PRODUCT/PROCESS

DEPLOYEEMENT OF POLICY/OBJECTIVE

RISK ANALYSIS/PDA

PFMEA

CHALLENGE

CONTROL PLAN FOR RESULT/PROCESS MEASURABLE

CONTROL PLAN FOR PRODUCT/PROCESS CHARACTERISTICS

IMPROVEMENT PROJECTS

CREATE/MODIFY STANDARDS

IMPLEMENTATION OF PROJECTS

IMPLEMENT STANDARDS

MONITER RESULT /PROCESS MEASURABLE CONFORMATION RESULTS CGPA PROCESS ABNORMALITY DETECTED

CREATE / MODIFY STANDARDS

CHRONIC CONCERN

IMPROVEMENT PROJECTS

EMPLOYEES
The employees in Mahindra & Mahindra are considered as an integral part of the organisation. As an organisation that has built its empire on the basis of 3Cs - Comprehensive, Compact and Cost Effective; the organisation ensures that the employees provide the same to the company. The following were some noteworthy points regarding the policies: Recruitment The employees recruited should be in line with the Rise philosophy, i.e., accept no limits, drive positive change and alternate thinking.  Employee Performance The employees are allotted five goals and the amount of performance he or she has given is analysed quantitatively. There are three basic standards set for meeting the goal. For ordinary achievement they are assigned L2, which means that they have achieved the set goals. A slight higher achievement sets them L3 standard and L5 is for exceptional performances. The salary appraisal is as per the goals achieved. For workers, they have an assessment program called PQCSDM (Productivity, Quality, Cost, Safety, Delivery, Morals). Every new idea in any of these sectors fetches them an “i point” (innovation) which gets accumulated at the end of the year and the bonuses are allotted according to the i-points gathered. Proper efficiency measures have been put up with an employee and worker required to work for 465 minutes in a day out of effective 510 minutes and the same is kept in check with the punching cards which stores the in and out time of the employees and workers, thus keeping a check on wastage of time . 

Employee Satisfaction Employee satisfaction is judged on a half-yearly basis where they employ third party (J D Power) to measure satisfaction. After the results are received, the business excellence department in association with the concerned department heads discuss the matter and sort out the grievances

WORKER TRAINING
The workers joining the company are trained in a school like scenario called “GURUKUL”. The Gurukul training lasts for 3 days wherein a day is used up for theoretical knowledge in the type of work the workers are going to work upon and the remaining on the practical aspects of their work . The “5-S” concept is implemented on th shop floor .

CUSTOMERS
Mahindra & Mahindra is not a company catering to a particular client concentration. Even though, when they started they made jeeps exclusively for the Indian army but that isn’t the case anymore and it has now been taken over with a host of vehicles for the civilians. Mahindra & Mahindra have come up with a fleet of vehicles for a given segment of customers and offers its customer a wide range to choose from . Mahindra and Mahindra have been aggressively promoting its product to the consumers, coming up with out of box and imaginative ideas . A host of advertisement on the print and paper media, radio and television can easily be monitored .They have also used internet as a medium to promote their products .XUV 500 which has been launched relatively recently from the Mahindra and Mahindra stable was marketed and promoted heavily through the medium of internet to the customers . “Gaze the price ” – a game with relation to XUV 500, was launched on the internet .Even the launch ceremony of XUV 500 was aired live through internet .All of this, resulted in a record 8000 booking orders for XUV 500 within 6 days of its launch . Customer is of paramount importance for Mahindra and Mahindra . A constant Endeavour has been made to keep the customer happy with the Mahindra product that a customer deals with . Service centre units makes sure that a Mahindra customer is a happy customer .

PARTNERSHIP
Partnership has played an important role for Mahindra’s. At first it was with Ford they partnered with. This ultimately led to formation of MFIL or Mahindra Ford India Limited in the year 1995. At that time Ford tried to use Mahindra’s as a key to the gain acceptance in the Indian markets by utilizing Mahindra’s name while Mahindra which at that time was manufacturing tractors and utility vehicles took this as an opportunity to diversify and try his hand on making cars and enhance its technical know-how. Mahindra greatly benefitted from this partnership. In 1998 this partnership came to an end as Ford had to increase its stake to 72%.Mahindra also entered into partnership with Renault in the year 2007.For Renault this partnership was seen as a key to enter into Indian markets while for Mahindra it was gaining technical knowledge of making good cars. This partnership led to the formation of the state of the art manufacturing plant in Nasik, Maharashtra. A car named Mahindra Renault Logan was also introduced. In 2010, Mahindra and Renault announced restructuring plans in which Mahindra would buy shares of Renault in the JV while Renault would continue to provide support to M&M and would remain a key supplier of components. Mahindra hugely benefitted from this partnership as it learned the art of producing monocoque chassis and Mahindra XUV 500 is the first car from the Mahindra stable in which this monocoque design has been used.

SOCIETY
Mahindra and Mahindra which is known to build excellent quality vehicles also excel in the field of Corporate Social Responsibility or popularly known as CSR. K. C. Mahindra Education Trust is involved in providing education to the needy across age groups and income. The Mahindra Education Society is doing a commendable job by establishing schools around its factories for the children of its employees and providing them a high standard of education .Mahindra Academy in Malad and Mahindra United World College are examples of the same . The Mahindra foundation has been set up to provide medical relief to the needy .The Employee Social Options Program (ESOPS) connects the Mahindra employees with the socially disadvantaged by helping them. In the year 2010-2011 around 15,147 employees of Mahindra contributed 73,509 hours helping people in the field of Health, Education and

Employment or some local initiatives. The company is also positively contributing towards the society through its widely renowned project “Nanhi Kali” which supports education for underprivileged girls in India. Nanhi Kali is presently supporting the education of more than 57000 girls. The company also targets to give 1% of its Profit after Tax (PAT) to social activities. Mahindra in 2007 started the project “Mahindra Hariyali” to plant more than 1 million trees across India and by 2008 it had planted more than 200000 plants ant the journey still continues by actively participating with schools, colleges, government etc. Mahindra is also involved at local level by distributing books, medicines, medical camps, blood donation camps and other such activities. In the field of art and culture ,Mahindra Excellence in Theatre Awards is encouraging theatre on the national level Mahindra is also trying to do its bit towards nature by introducing nature friendly cars such as Reva which runs on electricity and hence does not pollute the environment. It also produces zero emission cars and are now in making hybrid cars whose pollution emission levels is much lower than that of the conventional cars. The table below tells us the commitments of Mahindra towards the society and nature. Commitment Reducing energy consumption Reducing resource consumption Reducing GHG/C02 emissions Green IT/ Green Procurement Earning green certifications Spreading sustainability 2011-13 (3 years) 2% 2% 2% Draft, release, and implement 10 50% 2013-14 (5 years) 5% 5% 5% Review and update 15 100%

awareness to stakeholders Increasing employee engagement with ESOPs

10%

20%

FINANCIAL ASPECTS
Over the past five years the revenues and net profit have grown at average annual growth rate of 23.62% and 54.14% respectively. The Gross Revenues and other income of Mahindra & Mahindra Ltd. during the year ended 31st March 2011 is Rs.25896.0 crores as against Rs. 20595.5 crores in the previous year – a growth of 25.7%. The Net Profit before tax for the current year is Rs. 3519.6 crores as against Rs.2846.8 crores in the previous year. After providing for tax the same is Rs. 2662.1 crores against Rs. 2087.8 crores in the previous year - a growth of 27.5%. The growth in the profit of the company despite the relentless increase in material costs is due to a good volume performance by both Vehicles and Tractors, tight control on expenses and prudent financial management resulting in lower interest costs. The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. for the quarter ended 30th September 2011 is Rs. 8198.7 crore as against Rs. 6157.3 crore during the corresponding period last year – a growth of 33.2%. The Profit after tax for the quarter is Rs.737.4 crore as against Rs.758.5 crore in Q2 last year. Excluding the impact of Exchange Difference as above, PAT for the current quarter is Rs.759.0 crore which is on par with the PAT of Q2 last year. The Operating Margin after adjusting for the above Exchange difference is 12.3%. The company could maintain its profits despite the relentless increase in material costs due to a good volume performance by both Vehicles and Tractors in a difficult market and a tight control on expenses. The company does not target in terms of revenue or profit .The company is rather success driven. The company believes that the company would be successful if it can keep its customer happy and thus in the process the profit and revenue scenario would be automatically be taken care of .

CUSTOMER SATISFACTION
Mahindra and Mahindra through JD Power conducts various annual surveys such as JD Power Customer Satisfaction Survey, Initial Quality Survey, Vehicle Dependability Survey, Customer Service Index and other such tools to Apart from that it also conducts vehicle dependability surveys, Customer Service Index and other such tools to measure the customer satisfaction. These provide a very detailed analysis of the customer satisfaction level and the results of these surveys also help the company to know why the customers are not satisfied. Sometimes a customer may

not be satisfied because he may find the seats are not comfortable enough or there is a problem in braking. Sometimes a customer may not get his vehicle back from service centre on time causing dissatisfaction. These are just a few glimpses. There could be various reasons and detailed results of these battery of surveys helps the company to understand the causes for the dissatisfaction of the customers giving the company chance to improve and hence better its products and services. In order to ensure the customer is satisfied with a product Mahindra employs NOVA-C(A technique in which out of the dispatch a vehicle is chosen and is then tested by a Mahindra employee as a normal customer and after rigorous driving, if a fault is observed, it is reported to the company and on the basis of which the whole dispatch is checked for that particular fault. Another measure to ensure customer remains satisfied is RFI (A technique in 10% of the total vehicle produced is checked again). Mahindra on a regular basis offers free service camps for the existing customers which helps keep the existing customer to remain loyal too Mahindra. Apart from this the company also comes up with Car Exchange offer in which the customer can exchange his car with a new Mahindra Car at a discounted price. Mahindra employs a very good strategy to build connection with prospective customers. Before launching a vehicle the company looks at the market scenario and based on the results it decides the segment to be tapped. For ex-Before launching the Mahindra XUV 500 it was observed that there was no SUV in the range of 12-20 Lac and therefore they decided to go for it. After all the preliminary activities, customer survey is done regarding how the car design should be and after exhaustive survey a design based on various customer opinions and feasibility a design is proposed. This is a good technique to establish connection with new segments of customer. Giving what the customer wants is the best way to connect with the customers and that is what the Mahindra is doing. Apart from this Mahindra is also in the niche business of Customized Vehicles in which the customer can do some modifications based on his taste. This instantly connects with the customer.

OBJECTIVE BASED RESULTS
As a part of promise 2010, one of the promises was to make the sales in the foreign land grow quadrupled but the sales could only grow by 1.3 times . The reason for this failure being that Mahindra and Mahindra had targeted USA for a new product launch but the launch never happened. Also, they suffered dealer crisis in USA and hence, could not come up with the desired results as they had targeted the USA market to raise the foreign sales quadrupled. As an aftereffect, with proper analysis, Mahindra and Mahindra are now targeting the South-East Asian market to make foray into. The company strives to both reduce cost as well as increase the revenue and customer base. The company aims to provide customers the best product at the cheapest it can .

GOAL BASED RESULTS

The company enjoys a high success rate in achieving time based goals . e.g. Of the 9 earmarked goals as a part of the Promise 2010,only 1 time bound goal was what they failed in . Every year in the month of February, the Product unit managers and other managers come up with their requirements, in terms of resources for the calendar year to achieve the goals set .

PEOPLE RESULT
Measures taken to track the performance of the employees The company measures the performance of the employees based on 6 criterias Productivity Quality

Cost Delivery Safety Manners Based on these six criteria ,the employees are assigned “i -points”(innovation) and based on this aggregate “i-points” the employees are provided with monetary benifits. Based on the quality of suggestion given by the employees in the monthly Review meeting the employees are provide with monetary benefits .

REWARDS
To boost up the performance of the employees the company follows some reward and performance appraisal policies like Complementary off and paid holidays are provide to the employees When there is a demand from the employees the management responds to this very fast and efficiently During the recession period instead of going for job cutting the company prefers for cost cutting

MAHINDRA & MAHINDRA --- BALANCED SCORECARD
PROCESS & QUALITY PERSPECTIVE  The old layout of the plant was based on component layout (product layout) which later on

transformed into process layout. This move played a crucial role in increasing their efficiency from 20-22 cars per day to an average production of 225 cars per day. The production in the year 2010 was 64625 which was an exponential increase as compared to previous year.
70000 60000 50000 40000 30000 20000 10000 0 FY07 FY08 FY09 FY10 Units Produced

 To achieve maximum productive efficiency (of an individual worker), the company had employed MOST system which calculated the time required for a particular activity and as per the results of MOST, the tasks were assigned. This also gave a measure of efficiency of a worker.  Around 1400 Kaizens were implemented in the year to achieve better operational excellence. Kaizens were awarded with i-points which in turn motivated the employees  TACT (Time Allocated to Complete task) Technique was used to set up production objectives  Workers, who were recruited on contractual basis, were trained in Gurukul (The Training Centre). The skill levels are assigned as L1, L2, L3, L4 and L5 (in ascending order). Only those workers who had a skill level of L4 and above were allowed to work in the plant.  The company followed 5S to achieve operational excellence.

 ANOVA-C score was used to measure the quality of newly launched project. The ANOVA-C score showed how many failures were reported per 1000. This score dealt with failures after launch of the vehicles.

ANOVA-C Score
25 20 15 10 5 0 Genio Gio Cab Maximo Minivan

 The Supplier PPM equivalent model showed how much quantity of supplies were rejected per million of supply. This showed the quality of the supplier goods, i.e, the raw materials and outsourced components.

Supplier PPM Rejection
250 200 150 100 50 0 FY07 FY08 FY09

FY10

 The NPD approach is used to measure the manufacturing failures that M&M had experienced before launch of its vehicles. The data shows that failure has been decreasing substantially.

NPD Approach
500 450 400 350 300 250 200 150 100 50 0 Scorpio Bolero Xylo Gio Maximo Thar Maximo Minivan NPD Approach

2008

2009 2010



M&M, with the help of MQRS (Mahindra Quality Research Survey), takes into account

TGW (Things Gone Wrong) and TGR (Things Gone Right) so that continuous improvement can be achieved.  The quality certifications such as ISO 9000, TS 16949 and TS 1400 etc helps to maintain its high quality.

CUSTOMER PERSPECTIVE
 The company is looking forward to increase its customer base every year. With a huge range of customers already from Govt. Of India to rural people, the company is looking forward to tap huge reserves of potential customers in South Asia.  Mahindra follows “Customer Comes First” approach to ensure customer satisfaction. To get an idea of customer feedbacks, Mahindra employs JD Power in Self Satisfaction Survey, Initial Quality Survey (IQS) and Vehicle Dependability Survey (VDS). These surveys serve as a tool to measure customer satisfaction.  NOVA-C technique is employed to check quality on behalf of customer.

Genio

 Regular free service checks are offered to the present customers to keep their loyality intact.  The Mahindra Dealers are connected with the company via an online database. Any defect that is reported to the dealer comes directly to the company and hence any manufacturing defect could be traced. This results in the fact that quality could be maintained and the customer’s perspective are kept in mind  Customization of vehicles as per customer’s wish via online website has given the customers a freedom of choice. LEARNING AND GROWTH PERSPECTIVE  The company has been serving its customers over a period of six decades and has been a market leader in most of the segments it has ventured into. The company’s “Rise” philosophy enables the employees to rise with the rise of the company.  The company assesses its growth with the help of Promise Statements. The company has so far declared Promise Statements of 2010, 2013 and 2016. In each Promise Statement some goals are set in every field and then a strategy is worked out to achieve the goals. In the Promise Statement of 2010, out of the ten goals, five were achieved completely, four were partially achieved and one completely failed. The objective of quadrupling overseas sales was the only objective that failed completely. They could increase their sales by only 1.3 times.  The company plans to enter into four new platforms by 2015.  The company, by allowing its employees to dine in the same messes without any discrimination of ranks, signifies the care of the company  The company engages Gallop to conduct surveys and collect feedback from the employees of the organization. After the data has been collected the Business Excellence Department marks out the feedback on superiors and notes down the achievements, grievances and failures. Accordingly, they carry out decisions regarding rewards (in case of achievement) or training (in case of failures)  The workers are assigned a mentor so that they work under inspection and their errors could be easily corrected. The mentors accompany the workers till they reach a satisfactory level.

 The policy of rewarding on the basis of I-points ( for workers ) and L2, L3 and L5 (for executives) encourage them continuously for improvement.

FINANCIAL PERSPECTIVE  The company doesn’t judge its financial achievements on the platform of profits and work on the basis of customer satisfaction  Each unit has its own balance sheet and P&L statement, i.e., they are the one responsible for their own activities  The Promise Statements of 2010, 2013 and 2016 have got certain financial goals which need to be achieved. These goals act as measuring tools for the financial perspective.

HEXAWARE TECHNOLOGIES LIMITED
INTRODUCTION – Hexaware Technologies Limited (HTL) is an information technology and business process outsourcing service provider company based in Mumbai, India. The company provides software services in airlines, banking and financial services and health care insurance sectors. The company is currently assessed as a CMMI level 5 company and since 2005, NASSCOM has ranked Hexaware as India's 11th IT company in list of top 20. Current employee strength is above 8000 with over 175 clients. Company operates from multiple offices in countries like Japan, USA, Canada, Singapore, Netherlands, Belgium and Germany apart from India. After starting facilities in Chennai, the company started its third development center in Pune in 2006. In a separate survey of 2006, it was rated the sixth Best IT Employers from India. Atul Nishar, the founder of Hexaware, started Aptech computer education in 1984, which went on to become a noted Indian IT education provider. Later the company started providing business solutions and made into a separate IT division of Apple Industries. In 1990 it was spun into a new company which functioned for nearly a decade. In 2002 major restructuring happened as all the training activities were demerged into Aptech and business solutions were made part of Hexaware Technologies Ltd. Aptech was later sold to SSI the same year. Also same year, Hexaware's fully owned subsidiary Caliber Point Business Solutions was started with an investment of INR 5crore Business Process Outsourcing (BPO) operations. Caliber Point mainly focuses on the global healthcare industry with specialty in claims processing services. The Company has launched Hexaware HP Software Lab at its near-shore global delivery centre in Saltillo, Mexico. VERTICALS OF BUSINESSBanking Service, Financial Service, Insurance Infrastructure Management(Setting and Maintenance), Capital Market(Asset management), Global Travel and Transport

Health care Education Infrastructure management service Quality Assurance and testing HORIZONTALS ERP product-maximum revenue Dot net,Oracle Java Domain Business Intelligence Global bid management MISSION: To create unprecedented value for all stakeholders through Innovation, collaboration and operational excellence in partnership with clients that embrace globalization to boost performance and optimize value across the full product and service lifecycle. VALUES: Client Delight: The common focus and concentration of all their energies around their clients to exceed their expectations of us as a company, a team and as individuals (Peoplesoft,SAP)

Integrity: The common values we share in all their words, thoughts and actions with their clients, partners, shareholders and each other, that stands unwavering and above reproach

Employee Empowerment: An environment that harnesses the full potential of each and every individual in the company through empowerment and provides support to bring out their best

Esprit de Corps: The common cross cultural spirit, bond and dynamic that exists across their company and inspires each of us every day, establishes trust and respect for one another, nourishes a fun work environment and creates an inner sense of devotion, pride and honour.

Measurable Value: The common commitment to provide and be accountable for high quality, measurable results to their clients, partners, shareholders, and each other

LEADERSHIP
The mission and values have been framed by the leaders of the company to be followed throughout the company. Leaders in Hexaware technologies make sure that that they set an example before the company to follow. Following are the examples illustrating the same: a) b) The CFO, Mr. Pratik Aggarwal oversees the financial operations. Leaders like Mr.Nilay Jhala,associate vice-president are responsible for global delivery of projects based on microsoft dot net . c) Leaders have strived to develop a culture of excellence in the building and management of businesses in a global environment. d) To support and motivate the individuals, leaders at various levels conduct meetings to review departmental and individual goals. Surveys like “great place to work” and “data quest – best employers to work with” are conducted to check employee satisfaction . Leaders at all levels recognize the employees by various awards as well as incentives.

Administrative hierarchy of Hexaware technology 1) Vice chairman/CEO

2) Geography heads

3) Executive director for global delivery

4) HR finance

STRATEGIES AND POLICIES

Repeat Business with clients is one of the key strategies and policies of Hexaware technologies.So as to say,they believe that whenever a client comes to them ,they should make sure that the client returns happy and satisfied so as to provide repeat business.92% of Hexaware’s business is repeat business .To retain its customers Symphony is following some strategies likePlaying to the whims and fancies of the customer to keep the customer happy, Lower prices, engineering outcome certainty, gives value added services (values which customers don’t give),
Cost control instead of cost negotiation with its loyal customers

Symphony has robust policies that are well explained to its clients and employees. Effectiveness of its policies is also well illustrated from its results. It tries to promote a culture wherein every employee is engaged with the development of the company, and its policies are also centered on the same objective.

In the coming years, Hexaware Technology aims at launching themselves in 2 new platforms – softwares in manufacturing industries and extending their wings in health and firmly becoming a leader in the same .

To be able to articulate its goals into reality, Hexaware Technology relies on the carefully chosen workforce of technical expertise that it has – a) The expectations and requirements of employees is obtained through speak outs, performance appraisals etc.

b) Technology is regularly checked, upgraded and changed if necessary. This helps the company to keep with the industry pace of cost, quality and productivity.

c) Effective Communication is regarded as most effective way of handling any tough experience in the IT Industry. The expectations of the employees are taken into consideration, and the policies are improved upon in Hexaware Technology.

PROJECT ACQUIRING CRITERIA
Time precision Effort Over-run(40 % profit target in projects)

PEOPLE
People are the real assets for a service company. So the company has to take care that the best talent is recruited. That is why they have a dedicated team of recruiters headed by leaders like Mr. Sunil Mujumdar, vice-president, Head of Department – Human Resources. The company’s main assets are its employees .The major part of the company’s expense is the salary (60 %to 65% of the total expense) given to the employees. There are different avenues for career development for the employees because of the so many growth and performance opportunities. Functions of HR Recruitment Business unit HR/Business partner Each vertical handles 400 to 500 employees both in horizontal and Vertical Transactional HR-Their main job is to On-Boarding, Off-boarding, attendance and leave management.

The HRs in North America, Europe and Asia pacific Region handles the responsibility of visa, Tickets for their employees ,guiding the company policy as per the as per the local government laws.

RECRUITMENT,TRAINING AND CARE AND DEVELOPMENT:
The HR practices followed for recruitment and managing the people resources are in the form of a well documented and comprehensive HR policy.

The company hires 70 % of the required employees as fresher’s and trains them before they tak e a final plunge in the world of corporate . As per the requirement of the skill-set and experience, in different projects, they hire 30 % of the targeted employees at lateral level by using Body Shopping Model. While hiring the fresher’s they give priorit y to those with ability to apply knowledge and aptitude and communication skill of the candidate. Some of the practices which help in management of the people resources are as follows:

1. A World class work environment is provided to the employees of the company. The refreshment, rights and enjoyment is taken care for.

2.

Some of the qualities of the Recruiting team are having a strong knowledge of the profession and

clarity about the type of people they want. They are strategic as they know what type of people they want for the execution of future strategies, and the people who can provide them the strategic advantage. The team is speedy and believes in taking quick decisions, and speedy does not mean hasty, it means that they identify the people they want quite quickly.

LEADERSHIP BUILDING

People at Hexaware Technology are taught the culture of quality and best product making; this is what helps them keep their customers satisfied.

INDUCTION AND ORIENTATION:
The talent is nurtured through the on boarding and inductions programmers. The new employees are provided a familiar environment, for that there are induction programs so that the new people get well versed with the environment. A New Employee is assigned with a “buddy”, an existing old employee, who makes the new employee feel comfortable in the organization. New employee
integration program makes the new employee familiar with the work culture of the company.

REWARD SYSTEM/APPRAISAL:
(a) Ace award for a project (b) Star of the month of the entire location (c) Provision of managers special request for good performers (d) Rewarding good performers by increase in the salary in form of variable pay. (e) Feedback discussion and performance discussion (f) Training program for the employees from time to time (g) Performance improvement plan for weak performers with the manager, employees and HR managers. (h) Appraisal Reviewer

EMPLOYEE BENEFIT

Every year annual salary revision is done on April as per the Budget available

EMPLOYEE RETENTION
Employee satisfaction survey Employee connect programs The company has job rotation policy to increase efficiency of the employees. After every 18 months the employee under a particular domain or particular client can switch-over to different job profile. The opportunity of location change for the employees after a particular interval of time.

PERFORMANCE MEASUREMENT

Project orientation program is conducted in which the employees meet with the clients, colleagues. Goal setting exercise conducted to set the goal of the employees, Key Responsibilities Areas(KRA) are set and performance evaluated based on KRA, Competencies assignment “Rate yourself policy” in which the employee comments on his performance. KRA of the employees are reviewed from time to time. The manager continues to communicate with the employees on regular interval. Rating the employees based on their KRA. Performance is reviewed based on various guidelines

EMPLOYMENT INVOLVEMENT IN DECISION MAKING
Feedback is taken from the employees as per need for the policies on probation Focused Group Discussion

RESULTS:
Decreased number of employee turnover because of good working conditions and schemes like incentives provided on employee referrals. The infant mortality of employees is barely 25 out of 1200 employees.

MANAGEMENT FUNCTION:
a) Getting wide-ranging customer feedback b) Market & competitive analysis c) Managing release cycles d) Prioritization of point and major release functionality e) Working with client's Product Marketing teams f) The Company is determined to provide end to end solutions to the customers along with quality services through enriched relationships. The employees are encouraged to find innovative solutions for their clients which make an impact on the customers

CUSTOMER
Customer satisfaction form is circulated to the customers based on technicality, Delivery time, scaling of the project

FINANCIAL RESULTS
Most of the revenues of Hexaware comes from North America which constitutes around 65% of the revenues whereas Europe constitute for around 25% of the revenue. The remaining comes from Asia. Further subdivisions can also be done where in North America, majority of revenues comes from Canada, in Europe, Germany, UK, Belgium and Netherland constitute the major portion of the revenue. In Asia Singapore, Japan, Middle East provide the maximum revenue. 30% of the total revenue of Hexaware technologies comes from ERP out of which People Soft’s contribution is of 50%. 15% of the revenue of Hexaware comes from QATS( Quality Assurance and Testing Services). Around 40% of the revenue comes from ADM( Applications Development and Management). The remaining comes from Business Analysis and Business Analytics , Caliber Point( Business Processing Outsourcing) constituting 6% of the revenue and RIMS( Remote Infra Structure Management Services)constituting around 5% of the revenues. The company in the past 6 quarter has done three deals of $110mn,$177mn and $250mn.The EBIT for last quarter was reported to be 17% whereas the revenue for the last quarter was reported to be 78 million dollar. For the calendar year 2011,revenues is expected to be $300-306.5 mn

OBJECTIVES
The company had a tough time regarding a European client who had entered into a contract with Hexaware Technologies. The contract was worth 6 million Euros, but the flexibility demanded after the completion of project was too much. The company after that experience decided to adopt Requirement Stability Index in case of execution parameters. The company sets a target for 40% profit in each contract. But this norm is flexible on the basis of the relationship with the client and amount of the contract money involved. The cost cutting strategies include usually a mixture of experienced and fresher so that the cost incurred is minimum possible.

CORPORATE SOCIAL RESPONSIBILITY
Hexaware technologies launched a CSR initiative in year 2008 known as H30(Helping Hands from Hexaware whose objective was to inculcate the spirit of giving back to the society in the minds of Hexaware employees by helping the lesser privileged sections of the society and by providing support to institutions of the mentally, physically, and visually challenged. Apart from this people of Hexaware are also involved in providing support to the people affected by some natural calamity or disaster. Hexaware mainly supports three causes which are Education Health Environment

Hexaware actively participates in Dream Run which supports the cause of mentally and physically challenged kids. It also participates in the Give India Program in which the employees are given a chance to support a cause of their own choice by giving some part of their salary to their respective NGO’s. The company also conducts blood donation camps on regular basis. The environment initiative taken up by Hexaware is known as “Think Green” initiative. This initiative aims at spreading awareness about environment and implements eco friendly practices across all its centers worldwide. It also brings in experts from NGO’s for expert talk so as to make them aware about environment issues. Green Day celebrations are also carried out in which seeds and saplings were distributed to all the employees of Hexaware. Hexaware also aims to minimize electricity wastage by ensuring that no fans, Air Conditioners remain turned on unnecessarily hence minimizing wastage of electricity. The company also organizes Tree Plantation Drive in collaboration with Hariyali. Distribution of books and supporting the education of various underprivileged children is also one of the CSR agenda’s of Hexaware and the company ensures that they are carried on.

BALANCE SCORE CARD OF HEXAWARE TECHNOLOGIES
In case of the Balance Scorecard of Hexaware, we decided to put our views in the following quadrants:-

CUSTOMER MANAGEMENT PERSPECTIVE
  The customers are first judged according to their field of play. Only those customers are selected whose area of operation matches with the competitive advantage of Hexaware. SLA Management Monitor is used to track the availability and performance of the company’s mission critical business applications and ensure you derive higher business value through better management of IT and IT processes.      Matrix tracking of service level agreement. Risk monitoring matrix is used to track the risk profile of vendor organization of the customer. Various Risk Gearing tools such as Risk rating Index and credit worthiness are used to judge the transactional capacity of the customer. Business Benefit Indicator is used to judge the profitability of the prospective customer. Geographical location, Contractual Risk Monitoring and previous customer satisfaction is taken into consideration. Customer Satisfaction Survey is the key tool to measure customer satisfaction.

RESOURCE QUADRANT
   The team to develop and deliver products and service is based on a pyramid structure

usually forming a mix of experienced and fresher in the ratio 1:4. The team size is usually divided on the basis of onsite and offsite requirements Competency level of the resource group is measured on the basis of Total Asset Value

(i.e., the amount of certifications the team members have received), Quality of Delivery and Cost Incurred.  Attrition rate is a key factor in IT companies. The Infant Mortality rate of Hexaware is as

low as 2.5% which is quite acceptable.

 The employees are assigned KRAs and competencies. The competencies are broadly divided into two parts- technical and behavioral; the competencies are rated on a scale of 6. The weightage of technical competency is 60% while the behavioral competency carries a weightage of 40%. The KRAs are also further divided into Customized and Fixed and each of them is rated in a scale of 6. For lower level employees, it is mostly fixed while higher level management it is mostly customized.  Employees’ satisfaction is mostly judged by employee satisfaction survey. The company participates in Best Employers to Work With Survey (conducted by Dataquest) and Great Places to Work. The results are shared with the company’s HR Department and decisions are taken accordingly.

EXECUTION QUADRANT
 Requirement Stability Index is used to measure the flexibilities that have been incorporated in the product.  Testing Effectiveness Index is used to measure the effectiveness of the program delivered. This in fact measures how far the program is devoid of defects.  Size of Testing team reflects the total size of the work and the cost incurred by the company in terms of that project.  The Build Stability of the product developed is another key indicator of the robustness and stability of the program. A minimum of 80% robustness is expected.

FINANCIAL QUADRANT
 The financial goals are decided on a quarterly basis. The key indicators that are kept in mind while deciding the financial goals are profitability, future acquisition and present available liquidity. The company has a rewarding Dividend Policy of 50% and a payout ratio of 4.5 per annum which indicates its cash-rich status