This document provides an overview of an organization study conducted at L&T IES in Bangalore, India. It first introduces the objectives of the study, which were to understand the various functional areas and departments of the organization, apply management theories, and identify opportunities for improvement. It then describes the primary and secondary sources of data collection used. The next section provides profiles of the engineering services industry, L&T IES, and its major competitors which include TCS, Infosys, Mahindra Satyam, and Wipro.
This document provides an overview of an organization study conducted at L&T IES in Bangalore, India. It first introduces the objectives of the study, which were to understand the various functional areas and departments of the organization, apply management theories, and identify opportunities for improvement. It then describes the primary and secondary sources of data collection used. The next section provides profiles of the engineering services industry, L&T IES, and its major competitors which include TCS, Infosys, Mahindra Satyam, and Wipro.
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This article contains the Organisational study done at L&T
This document provides an overview of an organization study conducted at L&T IES in Bangalore, India. It first introduces the objectives of the study, which were to understand the various functional areas and departments of the organization, apply management theories, and identify opportunities for improvement. It then describes the primary and secondary sources of data collection used. The next section provides profiles of the engineering services industry, L&T IES, and its major competitors which include TCS, Infosys, Mahindra Satyam, and Wipro.
This document provides an overview of an organization study conducted at L&T IES in Bangalore, India. It first introduces the objectives of the study, which were to understand the various functional areas and departments of the organization, apply management theories, and identify opportunities for improvement. It then describes the primary and secondary sources of data collection used. The next section provides profiles of the engineering services industry, L&T IES, and its major competitors which include TCS, Infosys, Mahindra Satyam, and Wipro.
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Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 1
Chapter 1 Introduction
Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 2 1.1 Introduction to study Organization is the structural framework of duties and responsibilities required of personnel in performing various functions with a view to achieve business goals. An organization is a social group which distributes tasks for a collective goal. It is a planned, coordinated and purposeful action of human beings to achieve certain specific goals through division of labor and hierarchy of authority. According to Louis A. Allen, "Organization is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives." An organizational study is the systematic study about how people - as individuals and as groups - act within organizations. It involves the study of the structure and functions of different departments. Almost all the organizations are different but they have certain common features. All are collection of people, linked together by formal and informal relationships. They have hierarchical orders that are engaged in co-operative activities and they all have identical boundaries. So the study of people in organization is important for future managers. Structure of an organization is very important for its functioning and growth. It provides the basic frame work for its progress and expansion. The scope of the study is restricted to a subsidiary of L&T. The reason for selecting this company is that it is one of the reputed companies known globally and doing an OS here will increase our knowledge about every aspect of an organization. 1.2 Objectives of the study 1. To study the organization as a system and its various functional areas. 2. To have a practical knowledge of the application of the Management theories. 3. To have the real life knowledge of an organization through various departments. 4. To understand the strategies adopted to confront the challenges faced by the company. 5. To identify areas where there can be scope for improvement.
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Activities carried out during the project period: Attending the organization regularly. Learning about the working environment. Assess the organizational performances. Interaction with the employees who have got more experience with their respective jobs. Studying the activities of the employees and how they work. Sources of Data Collection PRIMARY SOURCE Primary data refers to the data that was collected first hand, directly from the source. This consisted primarily of interviews and discussion with the managers, employees and other staffs and also includes direct observation. SECONDARY SOURCE Secondary data refers to the data that was previously collected by others for another purpose. It includes: 1. Company websites 2. Annual reports 3. Internet
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Chapter 2 Profiles
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2.1 Industry Profile Engineering services are those service functions that deal with or related to core engineering processes. Examples are: CAD / CAM (computer aided manufacturing / design) Auto design Failure analysis of structural steel The distinction that needs to be drawn here is between engineering functions and engineering service functions. An engineering function could be auto engine manufacturing. A related engineering service function would be designing the engine. It is similar to the distinction between manufacturing and manufacturing support services Engineering work is unique in the sense that it is generally not considered a commodity; rather it is considered a value-added service. It is not something that can be automated as there are always different factors and emerging technologies. The engineer is in contact with the client at all steps. The user may also be brought in the process. This is an interactive process. Constant revaluation of the process and the progress is required. This leads to modifications. Upon completion, the engineer may be involved in the operation, the sales, or may teach the use of the product. I. Idea Phase - Identification of a problem or an idea (new building, product) II. Design Phase - The engineer analyzes the idea or problem. Designs solution under guiding factors listed below. III. Test Phase - The engineer applies the design to a model to test. This would occur more frequently with products as opposed to construction. IV. Manufacturing or Construction Phase - The engineer supervises the manufacturing processes (for electrical and mechanical engineers), construction (mainly for civil engineers), or improvements made to a plant, operating system. Modifications made during this process. Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 6 V. Product Completion or ProductionEngineer or manufacturer may simply hand product over to the client (i.e. electrical device), may sell the product (i.e. scientific instrument), may actually operate the product (power plant), or may teach the operation to the user (i.e. office building). Engineering Service Industry Practically all core engineering functions will have an accompanying service / support aspect. In some industries, the support activity might be much less in scope than in some others, but in practically all engineering domains, the support element exists. Some estimates put the engineering services industry to be close to a trillion $ in size. That is over 2% of the total world economy Role and relevance Larsen & Toubro Limited (L&T) is an Indian multinational conglomerate corporation headquartered in Mumbai, Maharashtra, India. A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure (a corporate group), usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company. The company has business interests in engineering, construction, manufacturing, information technology and financial services. L&T Integrated Engineering Services (L&T IES) is a Strategic Business Unit of Larsen & Toubro Limited. It provides end-to-end engineering services including Product Design, Engineering Analysis, Application Development, Asset Information Management, Plant Engineering and Engineering Process Support using cutting-edge CAD/CAM/CAE (Computer Aided Design/ Computer Aided Manufacturing/ Computer Aided Engineering) technology. It has nurtured a vibrant multi-disciplinary workforce of 4500+ engineers who possess relevant domain expertise in industry verticals like Automotive, Aerospace, Consumer Electronics, Medical Electronics, Industrial Products, etc. . Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 7 Major Competitors of L&T-IES Some of major competitors are listed below: 1. TCS Tata Consultancy Services Limited (TCS) is an Indian multinational IT services, business solutions and outsourcing company headquartered in Mumbai, India and a subsidiary of the Tata Group conglomerate. It is the largest Asia based provider of business process outsourcing services. It is the largest IT service company in India by revenue and market capitalization. TCS has 142 offices across over 42 countries and generates around 30 per cent of India's IT exports. 2. INFOSYS Infosys Limited formerly Infosys Technologies Limited is an Indian provider of business consulting, technology, engineering and outsourcing services. Its headquartered in Bangalore, India. It has offices in 30 countries and development centers in India, US, China, Australia, UK, Canada, Japan and many other countries. 3. MAHINDRA SATYAM Mahindra Satyam formerly Satyam Computer Services, is an Indian IT services company based in Hyderabad, India. It was founded in 1987 by B Ramalinga Raju. Mahindra Satyam is a part of the Mahindra Group which is one of the top 10 industrial firms based in India. The company offers consulting and Information Technology (IT) services spanning various sectors, and is listed on the Pink Sheets, the National Stock Exchange (India) and Bombay Stock Exchange (India). In June 2009, the company unveiled its new brand identity Mahindra Satyam subsequent to its takeover by the Mahindra Groups IT arm, Tech Mahindra on April 13, 2009. 4. WIPRO Wipro Limited (formerly Western India Products Limited) is an Indian global IT services and consulting company headquartered in Bangalore, India. As of 2012, Wipro is the second largest IT services company by turnover in India. It provides outsourced research and development, infrastructure outsourcing, business process outsourcing (BPO) and business consulting services. The company operates in three segments: IT Services, IT Products, Consumer Care and Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 8 Lighting. It is 9th most valuable brand in India according to an annual survey conducted by Brand Finance and The Economic Times in 2010. Wipro has other business interest particularly consumer goods, health care and engineering. 5. GEOMETRIC SOFTWARE Geometric Ltd is a software services and consulting company headquartered in Mumbai, India. Its portfolio includes Product Lifecycle Management (PLM), Global Engineering Services and Offshore Product Development (OPD) solutions and technologies. Geometric was set up as a Division of Godrej and Boyce in 1984-85. The company was incorporated in 1994. The company has two main business subsidiaries. Geometric Engineering, Inc., formerly Modern Engineering, Inc., headquartered in Rochester Hills MI, provides product engineering and manufacturing engineering solutions to the automotive and industrial sectors. Geometric Technologies, Inc., formerly Teksoft, Inc., headquartered in Phoenix AZ, develops and supplies productivity solutions for manufacturing operations. Key business verticals of this company are Aerospace, Automotive, Heavy Engineering and High-Tech, Fashion. It offers services in the following domains- Software Solutions (Product Lifecycle Management (PLM), Manufacturing IT and Software Product Engineering, Engineering Solutions and Technology Solutions. Its key technologies include Feature Recognition, NestLib (nesting software), and GeomDiff. The key products include GeomCaliper, eDrawings Publishers, CAMWorks, DFMPro and 3DPaintBrush. 6. INFOTECH ENTERPRISES Infotech Enterprises Limited is a global engineering services and solutions company headquartered in Madhapur, Hyderabad, India. It has 9,200+ workers across 30 global locations as of October 2011.Infotech Enterprises provides leading-edge engineering solutions, including product development and life-cycle support, process, network and content engineering to major organizations worldwide. Their key focus areas are Aerospace, Consumer, Energy, Medical, Heavy Equipment, Hi-tech, Transportation, Telecom and Utilities. 7. CSM CSM is a top notch engineering services solutions provider with a strong pedigree of working with global customers, offering end-to-end engineering services outsourcing solutions Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 9 that enables you to focus on your core business. CSMs primary objective is to provide advanced engineering software and services to global aerospace, automotive and other engineering industries. CSM has developed proven methodologies based on experience gained, while executing several projects for international organizations 8. CADES DIGITECH PVT LTD CADES, a leading product design and Engineering Services Company with emphasis on domain and innovation; provides Product design, Engineering and R&D services to aerospace, automotive & transportation sectors. With its core competency and domain expertise, CADES is the ideal technology partner for a wide range of engineering solutions. As a global engineering partner, CADES works in collaboration with its clients across the product development lifecycle by constantly innovating its processes, upgrading team skill-sets and creating resources of well- trained engineers to meet the scalability required for the growing demands of the industry. 9. QUEST GLOBAL QUEST Global Engineering is a diversified global engineering services company. They help their clients to cut product development costs, shorten lead times, extend capacity and maximize engineering resources availability by providing support across the complete product life cycle from design and modeling through analysis, prototyping, automation, data documentation, instrumentation and controls, embedded systems development, manufacturing support and vendor management. 2.2 Company Profile History and growth of L&T Larsen & Toubro was established in the year 1938 by two Danish engineers, Henning Holck- Larsen and Soren Kristian Toubro. Their first office was set up at Bombay, India. Both of them were strongly committed to develop India's engineering capabilities to meet the demands of industry. Beginning with the import of machinery from Europe, L&T rapidly took on engineering and construction assignments of increasing sophistication. Today, the company sets global engineering benchmarks in terms of scale and complexity Organization Study At L&T IES, Bangalore
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In the early years the company represented Danish manufacturers of dairy equipment. But in 1939 with the start of II World War imports were restricted. As a result they were forced to start a small workshop to undertake jobs and provide service facilities. Germany's invasion of Denmark in 1940 stopped supplies of Danish products. This crisis forced the partners to stand on their own feet and innovate. They started manufacturing dairy equipment indigenously. These products proved to be a success, and L&T came to be recognized as a reliable fabricator with high standards. The war-time need to repair and refit ships offered L&T an opportunity, and led to the formation of a new company, Hilda Ltd., to handle these operations. L&T also started two repair and fabrication shops - the Company had begun to expand. Again, the sudden internment of German engineers (because of the War) who were to put up a soda ash plant for the Tatas, gave L&T a chance to enter the field of installation - an area where their capability became well respected. In 1944, ECC (presently the construction division of L&T) was incorporated. By 1945, the Company represented British manufacturers of equipment used to manufacture products such as hydrogenated oils, biscuits, soaps and glass. In 1945, L&T signed an agreement with Caterpillar Tractor Company, USA, for marketing earthmoving equipment. At the end of the war, large numbers of war-surplus Caterpillar equipment were available at attractive prices, but the finances required were beyond the capacity of the partners. This prompted them to raise additional equity capital, and on 7th February 1946, Larsen & Toubro Private Limited was born. Independence and the subsequent demand for technology and expertise offered L&T the opportunity to consolidate and expand. Offices were set up in Kolkata (Calcutta), Chennai (Madras) and New
Henning Holck-Larsen Soren Kristian Toubro (4.7.1907 - 27.7.2003) (27.02.1906 - 4.3.1982) Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 11 Delhi. In 1948, fifty-five acres of undeveloped marsh and jungle was acquired in Powai. Today, Powai stands as a tribute to the vision of the men who transformed this uninhabitable swamp into a manufacturing landmark. In December 1950, L&T became a Public Company with a paid-up capital of Rs.2 million. The sales turnover in that year was Rs.10.9 million. Prestigious orders executed by the Company during this period included the Amul Dairy at Anand and Blast Furnaces at Rourkela Steel Plant. With the successful completion of these jobs, L&T emerged as the largest erection contractor in the country. In 1956, a major part of the company's Bombay office moved to ICI House in Ballard Estate. A decade later this imposing grey-stone building was purchased by L&T, and renamed as L&T House its Corporate Office. The sixties saw a significant change at L&T - S. K. Toubro retired from active management in 1962. The sixties were also a decade of rapid growth for the company, and witnessed the formation of many new ventures: UTMAL (set up in 1960), Audco India Limited (1961), Eutectic Welding Alloys (1962) and TENGL (1963). By 1964, L&T had widened its capabilities to include some of the best technologies in the world. In the decade that followed, the company grew rapidly, and by 1973 had become one of the Top- 25 Indian companies. In 1976, Holck Larsen was awarded the Magsaysay Award for International Understanding in recognition of his contribution to India's industrial development. He retired as Chairman in 1978. In the decades that followed, the company grew into an engineering major under the guidance of leaders like N. M. Desai, S.R. Subramaniam, U. V. Rao, S. D. Kulkarni and A. M. Naik. Today, L&T is one of India's biggest and best known industrial organizations with a reputation for technological excellence, high quality of products and services, and strong customer orientation. It is also taking steps to grow its international presence.
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Corporate Vision The L&T vision reflects the collective goal of the company. It was drafted through a large scale interactive process which engaged employees at every level, worldwide. The vision statement of the company is as follows:
.
Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 13 BOARD OF DIRECTORS A.M. Naik (Chairman) K.Venkataraman (CEO & MD) V.K.Magapu (Whole Time Director & President IT, engineering services, corporate initiatives) M.V.Kotwal (Whole Time Director & President Heavy engineering) Ravi Uppal (Whole Time Director & President Power) S.N.Subramanyam (Whole Time Director & Senior EVP Construction) R.Shankar Raman (Whole Time Director & CFO) Shailendra Roy (Whole Time Director & Senior Executive Vice President) NON-EXECUTIVE DIRECTORS S. Rajgopal (director and chairman of nomination and remuneration committee, L&T) S.N. Talwar (non-executive independent director of Sonata software) M.M. Chitale (independent director of L&T Infotech and L&T insurance) Thomas Mathew T (MD of LIC, India) N. Mohan Raj (LIC) Subodh Bhargava (Chairman of Tata Communications Ltd(VSNL), Chairman of Wartsila India Ltd) Mrs. Bhagyam Ramani J.S. Bindra A.K. Jain (Director and Chairman of Shareholders/Investors Grievances Committee, L&T since May 29, 2008)
Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 14 Shareholding
Products and services offered by L&T i. Construction L&T covers varied disciplines of construction, civil, mechanical, electrical and instrumentation. It provides consultancy, design and total engineering solutions to its customers. It carries out basic and detailed design for both residential and commercial projects also. ii. Heavy equipment They manufacture and supply custom designed and engineered critical equipment and systems to the needs of core-sector industries and the defense sector. iii. Power L&T-Power focuses on opportunities in coal-based, gas-based and nuclear power projects. They provide turnkey solutions for setting up utility power plants as well as co- generation and captive power plants on an EPC (Engineering, Procurement and Construction) basis. It also provides power plant engineering services. They offer turnkey solutions for large i.e. up to 1,000 MW coal-based power plant projects based on supercritical standards. It also offers the same capability in gas-based power plants.
Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 15 iv. Ship building L&T has a shipyard capable of constructing vessels of up to 150 meters long and displacement of 20,000 tons. This is to cater the needs of growing global demand for construction of specialized oceangoing vessels. The shipyard is geared up to take up construction of niche vessels such as specialized Heavy lift Cargo Vessels, CNG carriers, Chemical tankers, defense and para military vessels and other role specific vessels. They also undertake construction of specialized mid-size vessels and the capacity is being augmented by additional infrastructure such as ship lift system and additional outfitting workshops to extend the activities to ship repairs. The focus will be on construction of commercial vessels, warships for the navy and the coast guard. v. Financial services L&T has a spectrum of financial products and services for corporate, construction equipments etc. They also provide Mutual Fund schemes for investors in India. vi. IT Services L&T Infotech focuses on information technology and software services. Their clients include industry leaders like Marsh & McLennan, Standard Life, Travelers, Chevron, Rescale, Hitachi, Ingram Micro, Infineon, Sanyo, Lafarge, P&G, Johnson and Johnson, HD Supply, Citi Group, Barclays, eCORPUS, Marathon, Texas Instruments, Qualcomm, LG and Samsung among others- offers services and solutions for the following industries: banking and financial services, insurance, energy and petrochemicals, manufacturing. Larsen & Toubro Infotech Limited, a 100 per cent subsidiary of the L&T, offers software and services with a focus on Manufacturing, BFSI and Communications and Embedded Systems. vii. Engineering services It also provides services in the embedded intelligence and Engineering space. There are 150+ customers globally with more than 27 Fortune 500 Companies. Their clients include Unilever, Covidien, Rockwell Automation, Danaher, United Technologies, Cooper, P&G, Wartsila, etc.
Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 16 Certifications CMMi Level 5 v1.2 ISO-9001:2008 ISO 20000 ISO 14001, ISO 27001 Associates Audco India Limited, Chennai L&T-Chiyoda Limited, Baroda L&T-Komatsu Limited, Bangalore L&T-Ramboll Consulting Engineers Limited, Chennai L&T-Case Equipment Pvt. Limited L&T-Crossroads Private Limited Gujarat Leather Industries Limited The Dhamra Port Company Limited Vizag IT Park Limited NAC Infrastructure Equipment Limited International Seaports (Haldia) Private Limited Ennore Tank Terminals (Private ) Limited TNJ Moduletech Private Limited Salzer Electronics Limited Feedback Ventures Private Limited L&T Camp Facilities LLC Larsen & Toubro Qatar & HBK Contracting LLC L&T Arun Excello Realty Private Limited JSK Electrical Pvt. Limited Asia Alloys Precicasters Pvt. Limited Rishi Consfab Private Limited International Seaport Dredging Limited Organization Study At L&T IES, Bangalore
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L&T - KOMATSU LIMITED L&T Komatsu has its registered office at Mumbai and is focusing on construction equipment and mining equipment. It is a joint venture of Larsen and Toubro, Indias leading engineering, construction and technology major and Komatsu Asia Pacific Pte Limited, Singapore, a wholly owned subsidiary of Komatsu Limited, Japan. Komatsu is the worlds second largest manufacturer of hydraulic excavators and has manufacturing and marketing facilities worldwide. In 1998 it became a joint venture. L&TKomatsu Limiteds manufacturing facilityThe Bangalore Workscomprises Machinery Works and Hydraulics Works. Machinery Works has a modern manufacturing facility with ISO 9001:2008 accreditation for design, manufacture and servicing of earthmoving equipment. Hydraulics Works, with a precision machine shop, manufactures the complete range of high pressure hydraulic components and systems, and is ISO 9001:2000 certified for design, development, manufacturing and servicing of hydraulic pumps, motors, cylinders, turning joints, hose assemblies, valve blocks, hydraulic systems and power drives as well as allied gear boxes. L&T IES, Bangalore, is situated inside the campus of L&T Komatsu Limited, Bangalore. L&T INTEGRATED ENGINEERING SERVICES (IES) About L&T IES: L&T Integrated Engineering Services (L&T IES) is a Strategic Business Unit of Larsen & Toubro Limited, an 12.8 Billion USD engineering conglomerate from India. It provides end-to- end engineering services including Product Design, Engineering Analysis, Application Development, Asset Information Management, Plant Engineering and Engineering Process Support using cutting-edge CAD/CAM/CAE technology. Backed by seven decades of rich engineering pedigree, L&T IES has nurtured a vibrant multi-disciplinary workforce of 4,500+ engineers who possess relevant domain expertise in industry verticals like Automotive, Aerospace, Consumer Electronics, Medical Electronics, Industrial Products etc. L&T-IES operates from dedicated off-shore engineering centers at Vadodara, Mysore, Mumbai, Chennai and Bangalore in tandem with onsite teams to cater to engineering requirements of Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 18 global clients, many of them Fortune 500 Companies. L&T IES quality and IT security management systems comply with various international standards. Their various centers are certified for CMMI Level 5 and ISO 9001. Mission To provide engineering solutions using cutting edge PLM technologies to help their customers achieve their objectives of innovation, cost reduction and faster time-to-market. Certifications of L&T IES ISO 9001:2008 CMMI Level 5 certified offshore delivery centers ISO IEC 27001:2005 certification for IT security and Intellectual Protection Highlights Over 4500 engineers dedicated to Mechanical & Electronics engineering services Strong Project Management Processes to ensure quality and on-time delivery 27 clients are fortune 500 150+ global customers Design and delivery locations of L&T IES in India:
Baroda Mumbai Bengaluru Mysore Chennai Organization Study At L&T IES, Bangalore
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2.3 Product Profile of L&T IES Industry verticals: Automotive Aerospace Trucks and off highway vehicles Industrial products Medical devices and consumer electronics Telecom and high tech Plant engineering Integrated service delivery: Product engineering services Plant engineering services Other services Now lets see each of the services offered by them in detail
INDUSTRY VERTICALS AUTOMOTIVE The key focus area in this sector is the designing of engines and accessories, power train, chassis systems, interiors and seating, undercarriage, etc. Other focus areas are hybrid technologies, engineering analysis, technical publications, telematics and infotainment, BIW and body electronics, certification support and sourcing support. Power train refers to the group of components that generate power and deliver it to the road surface, water, or air. Chassis is the under part of a motor vehicle, consisting of the frame (on which the body is mounted) with the wheels and machinery. Telematics means any integrated use of telecommunications and informatics- the integrated use of telecommunications and Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 20 informatics, for application in vehicles and with control of vehicles on the move or Global Positioning System (GPS) technology integrated with computers and mobile communications technology in automotive navigation systems etc. Their main highlights are: Localization and program management support Design support for green, hybrid and eco-friendly products Development of Hardware-in-the-loop (HIL) simulators Reference platform solutions for BMS, Regenerative Braking Developed telematics and infotainment platform Hardware-in-the-loop (HIL) simulation is a technique that is used in the development and test of complex real-time embedded systems. A regenerative brake is an energy recovery mechanism which slows a vehicle down by converting its kinetic energy into another form, which can be either used immediately or stored until needed. This contrasts with conventional braking systems, where the excess kinetic energy is converted to heat by friction in the brake linings and therefore wasted. The automotive industry is facing several challenges today Intense competition Rising labor costs Pressures on profitability Declining customer loyalty. In addition, this consumer-focused industry faces the challenge of constant reductions in the time it takes to bring a new vehicle to market and the need to standardize while still maintaining a varied portfolio to meet the customer expectations. AEROSPACE As part of one of Indias largest and most respected engineering companies, L&T IES offers its aerospace customers Computer Aided Engineering (CAE) that is backed by decades of actual engineering practice in precision light engineering and design. The key focus areas of Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 21 L&T IES are designing avionics, aerostructure, engineering analysis, safety/mission critical software development, V&V (Validation and Verification) and LRU/ECU (Line Replaceable Unit/Electronic Control Unit) testing, interior design support activities, technical publications, certification support and manufacturing engineering. Avionics are the electronic systems used on aircraft, artificial satellites and spacecraft. Avionic systems include communications, navigation, the display and management of multiple systems and the hundreds of systems that are fitted to aircraft to meet individual roles. An aero structure is a component of an aircraft's airframe. This may include all or part of the fuselage (an aircraft's main body section that holds crew and passengers or cargo), wings, or flight control surfaces. Verification and Validation are independent procedures that are used together for checking that a product, service, or system meets requirements and specifications and that it fulfills its intended purpose. A Line-Replaceable Unit (LRU) or Lowest Replaceable Unit is a modular component of an airplane, ship or spacecraft that is designed to be replaced quickly at an operating location. An LRU is usually a sealed unit such as a radio or other auxiliary equipment. LRUs are sometimes described as "black boxes". Electronic Control Unit (ECU) is a generic term for any embedded system that controls one or more of the electrical systems or subsystems. Their highlights are: Expertise in End to End Design and manufacturing support for Primary and secondary structures Critical project execution UAV, FTI, Cockpit Display Presence of domain experts and DERs (Designated Engineering Representatives) on board Expertise in standards like DO 178B, IEEE 12207 and DoD-std-2167A UAV or Unmanned Aerial Vehicle is an aircraft without a human pilot onboard. Its flight is either controlled autonomously by computers in the vehicle, or under the remote control of a navigator, or pilot on the ground or in another vehicle. Flight Test Instrumentation (FTI) is monitoring and recording equipment fitted to aircraft during flight test. The Cockpit display systems (or CDS) provides the visible (and audible) portion of the Human Machine Interface by which aircrew manage the modern Glass cockpit and thus interface with the aircraft avionics. Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 22 DO-178B, Software Considerations in Airborne Systems and Equipment Certification is a document dealing with the safety of software used in airborne systems. IEEE 12207, "Standard for Information Technology Software Life Cycle Processes", is a standard that establishes a common framework for software life cycle process. DOD-STD-2167A (Department of Defense Standard 2167A), titled "Defense Systems Software Development", was a United States defense standard, published on February 29, 1988, which updated the less well known DOD-STD-2167 published 4 June 1985. This document established "uniform requirements for the software development that are applicable throughout the system life cycle." TRUCKS AND OFF HIGHWAY VEHICLES The Trucks and Off-Highway group at L&T IES represents a major strength area. The group since its inception has been working with prestigious global customers on critical design and engineering programs. This includes designing construction equipment, agriculture equipment, mining equipment, material handling equipment and trucks. Their highlights are: Product localization and Value Engineering for OEMs for new geographic locations Experience on Outcome based pricing Co-authored patents with OEMs Design Solutions to OEMs to meet stringent emission standards for US and Europe. Partnering for design of Next generation truck platform Redesign of manufacturing facilities focusing on communization and production of multiple variants An Original Equipment Manufacturer (OEM) manufactures products or components that are purchased by a company and retailed under that purchasing company's brand name. OEM refers to the company that originally manufactured the product. When referring to automotive parts, Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 23 OEM designates a replacement part made by the manufacturer of the original part. In this usage, OEM means "original equipment from manufacturer". INDUSTRIAL PRODUCTS The Industrial Products group of L&T Integrated Engineering Services supports manufacturers across the globe from diverse industries such as Process Control Equipments, Power & Electrical Products, Building Automation, Machinery &Equipment, Elevators& Escalators, Security & Surveillance and Hi-Tech Equipments. It is adept at handling wide- ranging design and engineering requirements right from concept development stage to prototype development. Their focus areas are designing process control equipments, power and electrical products, building automation, machinery and equipments, elevators and escalators, security and surveillance and hi-tech equipments. Their highlights are: One step solution for OEMs from Conceptualization to Product Launch. ITAR (International Traffic in Arms Regulations) Certified Facility Developing energy efficient and Green Products Expertise in designing Explosion Proof Enclosures for Hazardous Environments Achieved up to 30% cost reduction through Value Engineering Strong capabilities in executing Localization Projects for Emerging Markets MEDICAL DEVICES AND CONSUMER ELECTRONICS Medical devices and consumer electronics include designing Physiological data monitoring systems, Electrosurgical Units, Ultrasound scanners, Central Nursing Stations and White goods/brown goods. Physiological data monitoring system is an electronic medical device used in medical monitoring that displays the monitored data, and may or may not have the ability to transmit the data on a Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 24 monitoring network. Physiological data are displayed continuously on a CRT, LED or LCD screen as data channels along the time axis. Electrosurgical Units are medical devices used to cauterize incisions. Central Nursing Station is usually located in the hospitals, clinics or call center and allows the doctor or other healthcare providers which has direct access to the patient through the interactive video and audio of the Patient Station. Communicating over ordinary phone lines, the Central Station receives clear, close-up pictures, and live heart and lung sounds from the Patient Station via attached medical peripherals. The provider can make visual assessments of the patient and discuss his or her condition, medications, treatment or other concerns through a live, two-way transmission. Brown goods are portable or semi-portable machines, generally used on table-tops, counter-tops, or other platforms, to accomplish a household task. White goods are large machines which accomplishes some routine housekeeping task, which includes purposes such as cooking, or food preservation, whether in a household, institutional, commercial or industrial setting. Their highlights are: Experience in Regulatory requirements FDA (Food and Drug Administration) CE marking (European Conformity) IEC 601-1(Functional profile for providing the connection-oriented transport service in an end system connected via permanent access to a packet switched data network) Experience in projects which spans from concept development to launch reusable stapler Remote control for ultrasound scanner Carried out cost out programs in which clients were able to bring down the cost of the products by up to 56% Experience in Green technology Low power devices Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 25 Expertise in digital imaging and signal processing TELECOM AND HIGH TECH Their focus areas are designing of mobile devices, entertainment products and providing infrastructural facilities. Services offered for Mobile devices: BSP, OS Porting & Device Drivers Middleware Integration Application Development The OS platforms are Android, Symbian, Windows mobile and iPhone. Services offered for entertainment products: Digital TV Set Top Box Portable Media Devices Home Networking Devices The technologies include Multimedia, DVB and IPTV. Their highlights are: Rich experience in Telecom, Networking , Handheld & Consumer Electronics industry Niche player supporting the Product development activities with comprehensive Maintenance portfolio and wide Testing Services Long-term commitment with very high contract fidelity Credentials and experience of creating Offshore Development Centres , many of them spanning over 3 years of maturity PLANT ENGINEERING Their key focus areas are Detail Project Report Preparation, As-builds and Layout Engineering, Laser scanning and 3D modeling, simulation studies, Carbon Footprint Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 26 Management, best value option analysis, utility gap analysis, process safety study, commissioning supervision, inspection support, vendor management and procurement support, asset data and document management and information management. Their highlights are: Value added benefits of ONE Design - All locations - Engineering Re-Application & fine-tuning for global roll out Multidisciplinary Integration Cost Optimization in CAPEX (capital expenditure) and OPEX (operating expenditure) Harmonizing Data Across Systems, Business Units and Geographies Corporate EHS Carbon Footprint Management Successfully Executed Carbon Footprint Reduction by Green Engineering INTEGRATED SEVICE DELIVERY PRODUCT ENGINEERING SERVICES Mechanical Engineering Electrical/Electronic Engineering Engineering Analysis (FEA/CFD) CAD Automation & Customization Application Software Development Software Testing & Test Automation Mobile OS, Device drivers, Protocol stacks, Middleware, MMI framework and applications The main procedures in product engineering are product conceptualization, design and development, manufacturing support, product maintenance and after-market support. In product conceptualization stage includes customer survey, finding out customer requirements, product specifications, benchmarking, competitive analysis and new Concept Design & Industrial Design. The design and development stage comes next which includes Embedded Hardware and Software, Mechanical Engineering Services, Wireless systems Design, application software and Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 27 technical publications. The manufacturing support stage includes Manufacturing Engineering, Should Cost Analysis, Certification and Regulatory Compliance. Next is the product maintenance stage which includes Obsolescence Management, Sustenance Engineering, Customization of Product Line, Value Analysis & Value Engineering, etc. The last and the final stage is providing after-market support services like test lab support, warranty analysis, EPO offerings, product field trial, etc. PLANT ENGINEERING SERVICES Analytical Engineering, Simulation Studies & Special Studies Pre-project/ Conceptual Engineering Basic Engineering and FEED Detail Engineering - 3D Modeling, Modularization Carbon Footprint & Energy Management Asset Information Management The plant engineering services include the following procedures like feasibility study, basic engineering, detail engineering, installation and commissioning support and sustenance engineering. Feasibility study includes the land survey, market research, contract or tender specification, general drawings and budget estimation. Then comes the basic engineering stage where the conceptual layout is developed. The preliminary design is also made at this stage. The next stage is the detail engineering stage where the equipment sizing, 3D modeling, detailed layout drawings and data sheet and specifications are done. The next stage is installation and commissioning support where the project management and vendor management is done. The last and the final stage is sustenance engineering services which includes Laser scanning based Modeling, Energy Saving Analysis, Material Management, etc.
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OTHER SERVICES Sourcing & Costing Engineering Technical Publication Engineering Process Outsourcing PLM (Product Lifecycle Management) Testing
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Chapter 3 Analysis of Organization Structure & its Functions
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3.1 Planning in the company L&T IES mainly provides designs and 3D Models of products to its customers. There are also many other services provided by L&T IES. At first their customers give tenders to the companies specifying their product requirements. The companies then give an estimate and the project duration to the customer companies. The customer company selects the best deal from among the different offers. After that the customer company make a deal with the company regarding the resources used, time duration, etc which will be fixed. After receiving the project the company then plans the resources to be utilized, i.e., the people to be included in the project. The delivery head and the project manager discuss about the project and decide the project team. It is decided according to the project size. If the project is a complicated one then the team mostly comprises of expert members. From the team the most experienced and skilled person is selected as a leader. If the team is large then there may be 2 project leaders. The next step is discussion between the project manager, project leader(s) and team members. At the time of discussion their agenda will be meeting the customer requirements and learnings through case studies and previous records. The team then gets an idea on how to work with the project and they start with the work. The project leader guides the team in attaining the objective, i.e., meeting customer requirements within the specified time. He also reports the work done by the team periodically (weekly or monthly) to the project manager. Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 31 3.2 Organization Structure with Organization Chart
Executive Chairman Board of Directors K.Venkataraman MD and CEO of L&T Ltd Director (IT&ES) Chief Executive Chief Operating Officer Vertical Heads Sub Vertical Heads Project Manager Project Leader Team Members Sales Head Sales Managers Sales Engineers P&G Platinum Accounts Danaher and UTC Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 32 On the top is the Executive Chairman, Mr. A.M. Naik who is the head of L&T. Under him is the Board of Directors. They report to the Executive Chairman, in case of any problem or for taking major decisions. Then comes the MD and CEO of L&T Mr. K. Venkataraman. Most of the decision making process is done by him. Under the MD and CEO is Mr. V.K.Magapu, Director of IT and Engineering Services. The next in command is Mr. Dr. Keshab Panda, the Chief Executive of L&T IES. Mr. Girish Wardadkar, the Chief Operating Officer of L&T IES reports to the Chief Executive. Under him comes the vertical heads of various verticals. There are Sub Vertical Heads under each vertical but in certain cases verticals may not have sub verticals, so there need not be Sub Vertical Heads. The Project Managers are responsible to their Vertical or Sub Vertical Heads. Under Project Managers there are Project Leaders for each project who leads each team. And under each Project Leads comes their Team Members. The center head of Bangalore L&T IES is Mr. C Ramakantha Murthy. The vertical heads of various verticals are: Table 1: Different verticals and their heads VERTICALS VERTICAL HEADS Industrial Products Bhupendra Bhate Auto and aero R Suresh Babu Trucks and Off highway vehicles Shailendra Shrivastava Process Engineering Divya Bhatt Medical devices G R Mohan
3.3 Functional Area Analysis The success or failure of an organization depends upon the effective and efficient functioning of its different department. If the working and communication between the departments is good then the company will make profit. A different system is followed by L&T IES as compared with other industries. Instead of departments they have Verticals and for supporting the functioning of verticals there are horizontals. Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 33 Verticals and Horizontals Verticals are industry specific focus groups that will be useful to align the industry domain specifics and to align with the clients belonging to this industry. Horizontals are the specific capabilities or skills(technical or non technical) that span across two or more industry verticals. The verticals in L&T IES are: Medical devices vertical Industrial products and consumer electronics vertical Trucks and off highway vehicles vertical Auto and aero vertical Telecom and high tech vertical Plant engineering vertical The horizontals in L&T IES are: Mechanical Design and Validation Electronics and Software Engineering Product Life cycle Management Engineering Process Services Table 2: Horizontals and their heads HORIZONTALS HORIZONTAL HEADS Mechanical Design and Validation C Ramakantha Murthy Electronics and Software Engineering Mahesh Sanzgiri Product Life cycle Management RamachandraWalvekar Engineering Process Services BhupendraBhate
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Out of the different verticals L&T IES, Bangalore deals with only: Medical devices vertical Industrial products and consumer electronics vertical MEDICAL DEVICES VERTICAL
The Delivery Head of medical devices vertical is Mr. G R Mohan. There are 102 people working under him including two Deputy Delivery Heads - Mr. Sateesh Kumar T K, who is specialized in embedded electronics and Mr. Baiju, specialized in mechanical. There are about 60 people working under Mr. Baiju Thomas who are mechanical engineers and about 40 people working under Mr. Sateesh Kumar who are from the embedded systems background. There are 4 Deputy Delivery Head Sateesh Kumar T K (embedded electronics) Deputy Delivery Head Baiju Thomas (Mechanical) Project Managers (4) Project Managers (4) Project Leads (1 or 2) Project Leads (1 or 2) Team Members (5 or 10) Team Members (5 or 10)
Delivery Head G R Mohan Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 35 project managers under both of them. And under the project Managers there are project leaders for carrying out a particular project. There may be 1 or 2 project leaders for each project team depending upon the strength of the team. If the team consists of 10 team members then there will be 2 project leaders and if there are only 5 team members then there will be only 1 project lead. The revenue earned by the vertical for the last year was 4 million USD and the company receives about 100 to 150 projects in a year from Covidien alone. Their greatest achievement is that they are able to add 1 new customer every year. The main clients of the medical devices vertical are: Covidien Bard BK Medicals Biomet Steris and Others Covidien is one of the major client for which they provide Surgical Solutions (which includes designing surgical staplers, sealers, steds, etc.), Respiratory and Monitoring Systems (which are hand held support devices which are used for patient monitoring) and vascular therapy. There are three classes of medical devices: Class I devices are usually implant devices that are implanted into the human body for days or months. Class II devices are devices which have a direct contact with the patients body for hours or till the surgery or the operation finishes. Class III devices are those devices which do not have a direct contact with the patients body. These devices are mainly used for monitoring the patients. The devices under Surgical Solutions come under class II and the Respiratory and Monitoring System comes under class III.
Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 36 Services provided by medical vertical: 1. Design activity L&T IES medical vertical designs medical equipments for its various clients. The design activity for Covidien products undergoes 5 stages or toll gates. The First Stage is the concept stage where the company gives different concepts or designs to its client. From these different concepts submitted, the client will select the appropriate design according to their requirement. Second Stage is the feasibility stage where the feasibility study is done. Third Stage is the development stage where certain prototypes are provided to the client for developing the product. Fourth stage the production stage The Final Stage i.e. the fifth stage is launch where the company gives support to its client. In certain situations the company does not design an entirely new product but it modifies an already existing product, i.e., redesign a product. These stages may vary according to the client company. But most of the companies follow the same procedure. 2. Engineering change management In certain cases the clients ask the company to redesign the drawing mainly due to three reasons: (i) due to dimension deviation, (ii) material change and (iii) supplier change. So the company has to redesign or redraw the drawing done on the product. 3. Should cost analysis The client may sometimes ask to make an estimate of the cost that will be incurred for the manufacture or to do a market study. The cost of manufacturing includes material cost, labor cost, tool cost and the qualification cost (the cost incurred for getting the approval for a particular product). 4. Value engineering This means if a client wants to enter into another market there may be other manufacturers already existing in that market. So the clients price for the product must Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 37 be less than its competitors i.e. the already dominant player in the market. The client asks the company to fix a target cost based on the drawing. The client then adds a certain percentage of margins to the cost estimated. If the price thus obtained is more than the competitors price then the client asks to reduce the cost by redesigning the drawing. This process will be done until the price is equal or less than the competitors price. 5. Measurement projects In certain projects the materials measurement is taken and then the drawing in done based on the measurements taken. 6. Voice of customers (VoC) Certain clients ask them to take a survey of the doctors and make a study based on the survey collected about a particular product 7. Test fixtures manufacturing They also undertake designing of testing equipment. There are time limits for completing a project. The time limits for each project may vary. Usually the launch time is the time limit for each project. It may vary from 18 months to 24 months. They usually fix a date for the launch of the product and the company has to finish it within the time allotted. The company then fixes date for each stages or toll gates. Each stage has to be completed within these fixed time lines. If any stage exceeds the allotted time, then the next stage is squeezed to compensate the additional time taken in the previous stage. There are front end people to market the services offered by the company. The back end materials like best practices, learnings, case studies, etc. are provided to the front end people and they take these materials to the customers.
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INDUSTRIAL PRODUCTS VERTICAL
The Vertical Head of IP (Industrial Products) is Mr. Bhupendra Bhate. There are mainly 5 sub verticals for IP vertical, namely, building automation, electrical products, power, machinery and consumer electronics. Each sub vertical has a sub vertical head. There are Project Managers under each sub vertical head. Under them comes the Project Leaders who are Vertical Head Bhupendra Bhate Building automation Electrical products Power Machinery Consumer electronics Sub vertical Head Sub vertical Head Sub vertical Head Sub vertical Head Sub vertical Head Project Manager Project Manager Project Manager Project Manager Project Manager Project Leader Project Leader Project Leader Project Leader Project Leader Team Members Team Members Team Members Team Members Team Members Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 39 responsible for completing the project on time. The project leaders lead their team in attaining the objective. The team members are selected depending upon the project. If the project is a high end project then they require experienced team members. The IP vertical is the vertical that contributes most to L&T IES. There about 1000+ employees working under the IP vertical all over India. About 120 employees work in the IP vertical of Bangalore L&T IES. The revenue earned by IP vertical in 2011 was 44 million USD. This years target is 60 million USD. It contributes 30% of the total revenue earned by L&T IES. Their greatest achievement is that they getting at least one new client in every year. There are many clients for the IP vertical and the major ones are: Wartsila Cooper AEI E10 and Others The services offered by IP vertical are the same as that of other verticals. These include design, redesign, value engineering, testing, software development, etc. There are front end people to market the services offered by the company. The back end materials like best practices, learnings, case studies, etc. are provided to the front end people and they take these materials to the customers. Thus the marketing of services are done. This process is same for all the verticals.
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Saintgits Institute of Management, Kottayam Page 40 Danaher and UTC
Sales and Delivery head Mahendra Joshi Delivery head Rabi Rout Delivery Managers Susan W Delivery Managers Gopal S Delivery Managers Vajendra Desai Delivery Managers Zenthil Kumar Delivery Managers Sachin Project Managers Project Managers Project Managers Project Managers Project Managers Project Leads Project Leads Project Leads Project Leads Project Leads Team Members Team Members Team Members Team Members Team Members Organization Study At L&T IES, Bangalore
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The Sales and Delivery Head of Danaher and UTC vertical is Mr. Mahendra Joshi. The delivery and the sales divisions reports to him. Delivery division has a delivery head, Mr. Rabi Rout. Under him there are 5 delivery managers Ms. Susan W, Mr. Gopal S, Mr. Vajendra Desai, Mr. Zenthil Kumar and Mr. Sachin. Under each Project Managers, there are Project Managers. There are about 5 to 6 Project Managers under Ms. Susan and Mr. Vajendra Desai, about 8 people under Mr. Zenthil Kumar and about 3 to 4 people under Mr. Goplan S. There may be different teams under the Project Manager. Each team will be led by a Project Lead. The planning about the project will be done between the Project Leads and the Team Members. UTC and Danaher has a separate sales division for themselves who does the marketing of services for them. The head of sales division is Mr. Mahendra Joshi. Under him come the 4 sales managers- Pankaj Shah, Umesh S, Yogesh Desai and Ashwin. They have sales engineers to assist them.
Sales and Delivery head Mahendra Joshi Sales Managers Pankaj Shah Sales Managers Umesh S Sales Managers Yogesh Desai Sales Managers Ashwin Sales Engineers Sales Engineers Sales Engineers Sales Engineers Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 42 Danaher: Platinum Account One of their major clients is Leica Labs. It is a German based lab which works on life sciences and diagnostics. There are about 45 people working for Leica Labs. Fluke is another client for which Danaher team works. They are medical equipment manufacturers and Danaher team does new product development services for them. Another account of Danaher team is Kollmorgen, who is a manufacturer of motors and drives. Danaher team provides sustenance engineering services to this company. There only about 10 people working for this client. Thomson is another client of the Danaher team who is the manufacturers of linear guides. About 15 people work for this client of Danaher. Dover is another one for whom they provide design and support services. Only 2-3 people work for this client. UTC: Platinum Account Hamilton Sunstrand is one of their major clients, there are about 60-70 people working for this client. They provide designing of aerospace, electronic controls, test fixture development, LRU, etc. Fire and Security group is another one for whom they provide new product development. The products of this client are firefighting equipments, fire sensors or detector, fire alarms, etc. Another client of UTC is Carrier for whom they provide product designing services. Their products mainly include air conditions of lorries and buses. There are about 20 people working for this client. Goodrich is another recent customer for whom they havent started providing any services yet.
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Mechanical Design Validation: Horizontal
Mr. C Ramakantha Murthy is the head of MDV (Mechanical and Design Validation) Horizontal. Under him comes the heads of three divisions. The three divisions are Computer Aided Engineering (Dr. P K Roy), Manufacturing Engineering Services (MayankPandya) and Design Consulting (Ramesh Rao). There 292 people working under this horizontal among them 120 are under CAE, 90 under MES and 32 under DC. All the employees under this vertical should be from Mechanical Engineering background. All the employee in CAE must be M.Tech or have done PhD. The revenue of this horizontal for last year was 10.34 million USD. The revenue from CAE division was 4 million USD, from MES was 5 million USD and that from DC was 1.2 million USD. This years targeted revenue is 13.5 million USD.
Head C Ramakantha Murthy Head-CAE Dr. P K Roy (120) Head-DC Ramesh Rao(32) Head-MES MayankPandya (90) Delivery Engineers Delivery Engineers Delivery Engineers Organization Study At L&T IES, Bangalore
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Human Resource Department L&T was the first organization in India to set up a Human resource Department in 1960s. In early seventies, L&T was the first organization in India to set up an open Performance Management System Mission To create robust HR Practices & Processes so that it adds value to the organizations business & enables the organization to be an employer of choice. Employee Education Profile
65% 12% 1% 1% 16% 3% 2% 1% Engineering (Bachelor) BE/Btech Mtech/ME MBA MCA Diploma/Certificate Other Graduates Other Post Graduates Others Organization Study At L&T IES, Bangalore
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RECRUITMENT AND SELECTION POLICY Trainee Recruitment: All trainees (excluding Vocational/ In-Plant Trainees) shall be from AICTE approved colleges. The candidates shall have first class in tenth, twelfth & BE / B.Tech / Other degree and shall have cleared all examinations in the first attempt itself. College authorities shall certify as to the good conduct of the candidate. Candidates shall be certified as medically fit as per pre- employment medical checkup format of L&T. Vocational / In-Plant Trainees: Candidates shall submit introduction cum Project request letter duly signed by the Principal/HOD of the College/ Institute. Lateral Recruitment into Supervisory & Executive Cadre: All lateral recruits to Supervisory &Executive Cadre shall be from AICTE approved colleges. Based on Employment Application Format, the candidate shall have first class or high second class in tenth, twelfth. It is also compulsory that the candidate shall have first class in BE / B.Tech / Other degree. If all the above said requirement have been fulfilled then, based on C.V and Employment Application Format, Project Managers/ Department Heads shall certify that candidate is matching the technical requirements of the position to merit a personal interview. Background Reference checks shall be done selectively for recruits to sensitive positions based on the references given by the candidate. It is also mandatory that the Candidate shall be certified as medically fit as per pre-employment medical checkup format of L&T. Lateral Recruitment into Covenanted Cadre: All lateral recruits to Covenanted Cadre shall be from AICTE approved colleges. Based on Employment Application Format, the candidate shall have first class or high second class in tenth, twelfth and first class in BE / B.Tech / Other degree. Then the Project Managers/ Department Heads shall certify that candidate is matching the technical requirements of the position to merit a personal interview. The Personal interviews shall be conducted by Senior Management personnel to evaluate the candidate on technical caliber and on personal attributes. Background Reference checks shall be done selectively for recruits to sensitive positions based on the references given by the candidate. Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 46 Candidates shall be certified as medically fit as per pre-employment medical checkup format of L&T. Appointments on Consultant/Contract basis: Based on CV & Employment Application Format, Cluster Head/ Unit Head shall certify that candidate is matching the technical requirements of the position to merit a personal interview. Personal interviews shall be conducted by Senior Management personnel to evaluate the candidate on technical caliber and on personal attributes. Background reference checks is not conducted for employees hired on contractual rolls owing to their nature & scope of job.
Appointment Letter from L&T shall include: The confidentiality requirements of the business. Acceptance of the rules and regulations of the Company. The abiding by the security policy documents. The confidentiality requirements of the customer.
INDUCTION
Objective: To familiarize lateral new joiners with company overview, business structure and policies & procedures of HR, IT and administration departments, towards a smooth induction into the organization. This will increase their feeling of belongingness towards the organization. Procedure: Book the Conference Hall for two days through the booking portal 15-10 days in advance from the date of Prarambh (induction programme). Prepare an updated list of new joiners for the month (excluding those who had been included in Prarambh for the previous month). Also, include the participants who could not attend the last months Prarambh. Send invitations (Mail/Meeting Request using outlook) to the new joiners and the facilitators/spokesperson, atleast a week prior to the date of Prarambh. Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 47 Send a reminder via email or over telephone for the same 3 days prior, if required. In case of the unavailability of a speaker, arrange for an alternate speaker for the specific topic/s. Ensure all the necessary arrangements are in place one day before the start of the program. (eg. Seating arrangement, refreshment, technical support, A.C regulation and the availability of the presentations/ related material) Arrange for sticking posters about Prarambh for creating awareness amongst the employees. Record the attendance and the feedback for the Orientation session (1st day of Prarambh).QMS team will take care of attendance and feedback for the QMS session. Analyze the feedback, share it with presenters in separate mails and implement the corrective/preventive actions for improvisation of the program. Analysis of feedback is to be shared with the LM-Head within a week post completion of Prarambh.
TRAINING AND DEVELOPMENT
L&T IES as an organization is a learning organization which believes in continuous learning process. At IES they train their greatest asset the human asset with a blend of technical and behavioral skills. Objective: Technical training is imparted to enhance the Software skills & Engineering Design skills of the employees depending upon the requirements of the organization.
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Process involved in Training
Training Need Identification Identification of the training needs begins in the month of January when all the Project Managers are required to send the training needs to the HR Head. Taking into consideration the inputs from them and business requirements depending upon the projects, training needs are identified by the HR Head. Training needs identified in PODP (Performance Oriented Development Plan) form are also taken into consideration. PODP is a development tool for identifying development needs of the employee in his/her current role and forms an integral part of the appraisal system. Training Need Identification has 2 dimensions- Technical training and behavioral training. Technical Training Training Needs Identification
Training Calendar
Informing the Stakeholders and getting the Nominations
Conduction of the Training programme & maintaining the Training Records
Monitoring The Success of the Training Programme Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 49 Engineer Trainee (ET) training ETs are sent for 3 months training at tool rooms (IGTR-Indo German Tool Rooms) and OERC-Ocean Engineering and Research Center (for Ship Design) before they actually report to the respective center to ensure that the employees can effectively use their software skills right from the moment they join the organization. Other technical training Project Managers/Project Leaders are asked to suggest training programme based on needs that they felt by HR head through e-mail. Behavioral training These are identified by the Head HR in consultation with the Project Lead or Project Manager, considering the business and the employee profile. The focus is on Customer Orientation, Team Work, Communication and Self-development. These trainings are subject to change or modifications as per the requirements of the Projects. Some of the needs include the inculcation of assertiveness, awareness, professional mannerism and improved communication skills. Training Calendar Based on the identified training needs, a Training Calendar is prepared with details of tentative costs and number of man-days to be covered. However, it is finalized upon the approval from Cluster Head and in consultation with the Centre Head by the end of March. The calendar is then circulated to the concerned in the month of April. Informing the stakeholders Once, a training program is drafted, it is finalized with the approval of the HR Head who gives the permission in consultation with the Centre Head. Next the Training Co-coordinator (usually from the HR Department) takes on the responsibility of coordinating the entire training program. Then all the Project Leads or Project Managers are informed in advance about the training program to be held, its benefits and objectives. They are given a list of employees from which they are required to nominate the ones which require to undergo the training program on Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 50 an urgency basis. The employee can also nominate himself for the training programme by sending his request to HR through his PL/PM. Once the nominations are finalized, the nominated employees are informed about the training program and their confirmation (written/verbal) on the same is taken. Having confirmed about the participation, an employee is advised to attend the full training programme. Similarly, it is the duty of the PL/PM to ensure the participation of his team-members for the training programme. If an employee is not able to attend the training programme for any serious / urgent personal issues, it is the responsibility of the concerned employee to inform to his PL/PM and to HR. Any insincerity / negligence of any kind towards training activities shall be noted down and shall be considered while assessing employees performance for the year. Conduction of the training programme and training records All the resources required for the successful completion of the Training Program are made available well in advance. Following records are maintained at the time of Training Programme. These are regularly updated and kept as records for future reference. Attendance sheets Feedback forms from the participants A comprehensive sheet containing all the required details List of nomination is compared with the list of participants to ensure that all the participants have taken part in the programme. Monitoring the training programme After the training programme, the participants are asked to fill up the feedback form of the training programme they have undergone. Based on the feedback received from participants, analysis is done and it is reviewed with HR head for future reference and further decision making.
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PERFORMANCE MANAGEMENT Managing employee performance facilitates the effective delivery of strategic and operational goals of the organization. Objectives: Record & Review the Performance Performance Feedback Constructive Feedback & Counseling To set objectives for the coming year Identification of Training & Development Needs (PODP) Assessment of Technical Skills Rewards (Incentive & Increment)
Objective setting Performance Oriented Development Plan Mid-year review Yearly Review Feedback to Employee Process Rewards Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 52 Performance Evaluation The Performance of the appraisee is first assessed by the Immediate Superior and gives ratings between 1-8. The review of the Immediate Superior is then passed to the Next Superior and he then puts his comments. The Department Head then normalize the ratings across the department based on the various performance parameters and passes to the HR head. HR Head forward the same to MVG for final rating. MGVs are Macro View Group which consists of all the senior personnels including the Vertical Heads who does the final rating. The HR Head receives the final rating made by MVG. Then he passes it to the Department Head, then to the Next Superior and finally to the Immediate superior. Immediate Superior conveys the final ratings & feedback to the appraisee.
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Ratings Performance Category 8 Outstanding Performer 7 Top Performer 6 Top Performer 5 Vital Contributor 4 Vital Contributor 3 Needs Improvement 2 Below Average 1 Below Average
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TRANSFER Transfer is a permanent movement from one location to another with the same or enhanced responsibilities. An employee cannot be so transferred to new location from the current location without completing minimum of two years at present location. All the transfers need to be jointly agreed by concerned Business/Vertical head. However, time bound change of location will not come under the transfer policy. Transfers are encouraged and undertaken, keeping in view the employees &organization interest. However, organizational interest would predominate. An individual interest would be taken to account to the extent organization allows. While transferring employee from one location to another, his personal needs are also taken into consideration to the extent possible and it is ensured that he/she is not put to a gross inconvenience. All transfers will be affected in the first week of every month, (unless based on exigencies and organization requirements). Objective: In furtherance to employees career as well as to meet organization requirements an employee of the Company is liable to be transferred to any location of the Company or its group companies as and when required. Applicability: The transfer policy is applicable to all permanent employees excluding consultants and contract employees. Policy: All transfers will be primarily based on the needs of the Organization. The suggested transfer shall be first discussed with the employee concerned. The employee being transferred shall be issued formal letter of transfer. Organization Study At L&T IES, Bangalore
Saintgits Institute of Management, Kottayam Page 55 HR Business Partners will inform Employee Services team of the current and new Locations of the employee. The ES Team will facilitate the transfer movement based on mutual consensus & approval of concerned Business/vertical Heads. All transfer will be through SAP. Transferring unit will initiate the transfer in SAP & receiving unit will accept after validation of related SAP entries. Inter location transfer: Inter location would be further classified as under: a) Transfers at individuals request b) Transfer based upon business requirement Compensation fitment on transfer: All transfers across Operating Divisions will be based on current CTC (Cost to Company) of the employee. There will be no reduction in compensation on account of transfer. Transfer of personnel records: The entire file of the employee is transferred to the receiving location along with a transfer check list. Administrative support: The receiving location provides all the administrative support to the employee who is getting transferred such as temporary accommodation based on request. However, it is clarified, that in case of any difference in any policy between the two locations, employee will be bound by the policies of the receiving location even if they are unfavorable to him compared to that of the sending location.
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Chapter 4 SWOT Analysis
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Strengths: Focused Engineering services provider Parent company background in manufacturing and process industry Existence of skilled human resources Geographically situated at ideal locations Use of new technologies Provider of better services to companies in manufacturing and process industry Weakness Large product development cycle Employee turnover is high Inadequate level of training of employees Opportunity Future for engineering sector is very promising Industries in India is being looked upon as an outsourcing destination by global companies Growing channel of exports in the neighbouring countries Threats Not as well known as its competitors like TCS, Infosys, Wipro, etc in global market Employees quit and join the well known software firms which pay higher
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Chapter 5 Suggestions and conclusions Organization Study At L&T IES, Bangalore
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5.1 Findings L&T IES offers customers a wide range of prompt engineering services The company has a sound financial position and a stable management It has high brand image L&T IES has parent company background in manufacturing and process industry Company believes in innovation Employees quit and join the well known software firms which pay higher Salary is not matching with the work done by the employees. The company has good sales network It maintains good after sales services
5.2 Suggestions of the study More advertisements to promote sale and customer awareness Salary should be given taking into consideration of their work load The company should reduce inefficiency, absenteeism, and idle time Company should concentrate on motivation, incentive schemes and should liberalize promotion strategies. Upgrade the training programmers in order to increase the efficiency of workers
5.3 Limitations of the study Organization was reluctant to disclose some relevant information Certain information was vague and study based on these may not get a true picture Time limit is another limitation and it restricted the study in few areas
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5.4 Conclusion L&T has different subsidiaries located in different parts of the world. Among those subsidiaries one is L&T KOMATSU, Bangalore. L&T Integrated Engineering Services (L&T IES) is a Strategic Business Unit of Larsen & Toubro Limited. Its Bangalore office is situated in the L&T Komatsu Campus at Bangalore. The study was conducted at this office. It has 2 verticals, 1 horizontal, 1 platinum account and HR department in this office. The study was conducted with a view to understand the functions of L&T IES and its various verticals and horizontals. During the course of study I was successful in achieving these objectives and could familiarize with an organization and its environment.
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BIBLIOGRAPHY
Websites http://www.larsentoubro.com/lntcorporate/common/ui_templates/homepage http://en.wikipedia.org/wiki/Larsen_%26_Toubro http://www.larsentoubro.com/lntcorporate/common/ui_templates/homepage_news.aspx?r es http://www.larsentoubro.com/lntcorporate/common/ui_templates/HtmlContainer.aspx?re s=P_CORP_AABT_BSTR_ABRD Books and magazines Annual report 2012 L&Tites may 2012 L&Tients may 2012