TRIBHUVAN UNIVERSITY

INSTITUTE OF ENGINEERING
THAPATHALI CAMPUS

A REPORT
ON
INTERNSHIP AT KIA MOTORS

by
Anup Chauhan (073/BAME/602)
Bibek Dangol (073/BAME/606)
Bishal Poudel (073/BAME/609)
Krishna Rasaili (073/BAME/617)

SUBMITTED TO THE DEPARTMENT OF AUTOMOBILE AND MECHANICAL

ENGINEERING

DEGREE OF BACHELOR IN
AUTOMOBILE ENGINEERING
DEPARTMENT OF AUTOMOBILE AND MECHANICAL ENGINEERING
KATHMANDU, NEPAL

DECEMBER, 2019
 COPYRIGHT
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Head Department of Automobile and Mechanical Engineering

Thapathali Campus, Institute of Engineering
Kathmandu, Nepal
ABSTRACT
Continental Trading Enterprises, an authorized dealer of KIA Motors is well known for
the sale and servicing of automobile for over two decades. It is one of the largest
automobile maintenance and servicing workshop in the country Continental Trading
Enterprises is an unshared distributor of KIA Motors and its genuine parts in Nepal. With
the introduction of the KIA’s electric vehicle in Nepal, it has brought a new dimension
in automobile industry of our country.
It was a wonderful opportunity for us to do one-month internship in Continental Trading
Enterprises Dhumbarahi, Chappal Karkhana. Internship in the automobile field was
beneficial for us to understand the limit of proximity to current technology, their scope
and customer behavior to certain extent. This report summarizes about the company
profile, company activity, layout in and our activities during the period of training at KIA
Motors. The main purpose of the internship was to develop a basic understanding of the
technology utilized in the automobile company and the services provided by the company
in this field. It contains several managerial and technical activities that are assigned at
KIA motors. It contains details on different technologies we learnt about and the different
system of a car. It has boosted our confident and assisted to fulfil our purpose an objective
of doing internship in automobile field.
ACKNOWLEDGEMENT
Firstly, we would like to express our sincere appreciation to Mr. Subodh Kumar Ghimire,
head of Department of Automobile and Mechanical engineering, Thapathali Campus for
his suggestion to carry out our industrial attachment at KIA Motors. We would also like
to express our profound gratitude to Continental Trading Enterprises for providing us an
opportunity and platform to gain practical knowledge in automobile sector.
We would also like to convey our deepest gratitude to service manager of Kia motors for
providing this opportunity to develop our knowledge and skill in practical field. Our
special thanks to the supervisor who has given the valuable time and has mentored us
throughout the internship. We would like to thank all the staff member of KIA Motors
for their assistance and friendly behaviour towards us throughout the internship.
1 Table of Contents
1 INTRODUCTION ........................................................................................................ 2
1.1 Background ........................................................................................................ 2
1.1.1 Objective ............................................................................................................ 2
1.2 Organizational structure ..................................................................................... 3
1.3 DEPARTMENTS OF KIA MOTORS .............................................................. 3
1.3.1 ADMINISTRATION DEPARTMENT ............................................................. 4
1.3.2 SALES AND MARKETING DEPARTMENNT .............................................. 4
1.3.3 FINANCE AND LEGAL DEPARTMENT ...................................................... 4
1.3.4 INVENTORY DEPARTMENT ........................................................................ 4
1.3.5 MAINTENANCE DEPARTMENT .................................................................. 4
1.3.6 DENT AND PAINT DEPARTMENT .............................................................. 4
1.4 Organizational software ..................................................................................... 5
1.5 KIA products in Nepal ....................................................................................... 5
2 Personnel management .......................................................................................... 5
2.1 Managerial function ........................................................................................... 5
2.2 Operative functions ............................................................................................ 6
2.2.1 Recruitment and selection of manpower ........................................................... 6
2.2.2 Wages and incentives (compensation) ............................................................... 6
2.2.3 Job evaluation and merit rating.......................................................................... 7
2.2.4 Motivation.......................................................................................................... 7
2.2.5 Training and development ................................................................................. 7
2.2.6 Employee relations & services .......................................................................... 7
3 Management Information System (MIS)............................................................... 8
3.1 MIS in different departments ............................................................................. 8
3.1.1 Finance Department ........................................................................................... 8
3.1.2 Inventory Department ........................................................................................ 8
3.1.3 Sales and Marketing Department ....................................................................... 8
3.1.4 Maintenance Department ................................................................................... 9
4 PRODUCTION SYSTEM DESIGN ..................................................................... 9
4.1 Locational analysis ............................................................................................ 9
4.2 Plant building ..................................................................................................... 9
 4.3 Plant layout ........................................................................................................ 9
4.4 Flow pattern ..................................................................................................... 10
4.5 Material handling equipment and tools ........................................................... 10
5 PRODUCTION PLANNING AND CONTROL ................................................ 15
5.1 Production ........................................................................................................ 15
5.2 Routing ............................................................................................................ 15
5.3 Scheduling ....................................................................................................... 16
6 INVENTORY CONTROL .................................................................................. 18
6.1 Direct inventories............................................................................................. 18
6.1.1 Purchased parts ................................................................................................ 18
6.1.2 Finished parts ................................................................................................... 18
6.2 Indirect inventories .......................................................................................... 19
6.2.1 Tools (standard and hand tools) ....................................................................... 19
7 MATERIAL REQUIREMENT PLANNING ..................................................... 19
7.1 Master production schedule ............................................................................. 20
7.2 Bill of materials ............................................................................................... 20
7.3 Inventory status file ......................................................................................... 20
8 FORECASTING.................................................................................................. 20
9 PLANT MAINTENANCE .................................................................................. 20
10 QUALITY MANAGEMENT ............................................................................. 21
11 SWOT ANALYSIS ............................................................................................. 21
11.1 Strength ........................................................................................................ 21
11.2 Weakness ..................................................................................................... 22
11.3 Opportunities ................................................................................................ 23
11.4 Threats .......................................................................................................... 23
12 METHODOLOGY .............................................................................................. 23
12.1 Observation .................................................................................................. 23
12.2 Participation ................................................................................................. 23
12.3 Structured interviews ................................................................................... 24
13 CASE STUDY .................................................................................................... 24
14 CONCLUSION AND RECOMMENDATION .................................................. 25
14.1 Conclusion ................................................................................................... 25
14.2 Recommendation ......................................................................................... 26
15 References ........................................................................................................... 26
List of Figures

Figure 1:Organizational Structure .................................................................................... 3

Figure 2: Plant layout of KIA Motors ............................................................................ 10
Figure 3: Flow Pattern in KIA Motors ........................................................................... 10
Figure 4: Hydraulic lift ................................................................................................... 11
Figure 5: Four post lift .................................................................................................... 11
Figure 6: Hydraulic Jack................................................................................................. 12
Figure 7: Hydraulic tappet .............................................................................................. 12
Figure 8: Tool Box ......................................................................................................... 13
Figure 9: Impact Gun ...................................................................................................... 13
Figure 10: Vertical Stand ................................................................................................ 14
Figure 11: Ramp ............................................................................................................. 14
Figure 12: Washing Gun................................................................................................. 15
Figure 13: Spare parts of KIA Motors ............................................................................ 18
Figure 14: Tool Box ....................................................................................................... 19

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1 INTRODUCTION

1.1 Background

The Continental Trading Enterprise is a Korean multinational company which

represents the famous brands like Komatsu construction and mining equipment, KIA
passenger vehicles, Otis elevators and drilling equipment like Furukawa. It also has
its stake in manufacturing concerns, financial institutions and housing development.

For the last ten years, it has been distributing the KIA passenger cars and commercial
vehicles (mini buses) in Nepal. KIA is a Korean company which is renowned
worldwide for its products meeting the needs of people of various classes. KIA
products are known for reliability as well as value for money. In Nepal it has been
offering KIA models like Cerato, Rio (Sedan and Hatchback), Carens and Picanto
cars, Sorento and Sportage SUVs and Pregio micro buses. All these models have
earned good reputation in Nepal in terms of their performance and service provided
through our dealers across the nation.

1.1.1 Objective
The main objectives of KIA motors are listed below:
• Provide new experiences to the customers with creative product and
service excellence.
• Make positive contribution to the sustainable development of the
society.
• Act sincerely as trusted company.
• Enhance stockholder value.

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1.2 Organizational structure

President
(Continental
Trading Enterprises)

KIA motors

Service Sales
Division Division

Manager

Assistant

Supervisor

Mechanic Washer Painter

Figure 1:Organizational Structure

The organizational structure at KIA Motors is line structure. It is the simplest and
oldest form of organizational structure. The line of authority flows vertically from
top most executive to the lowest subordinate throughout the organization. Where,
managers have direct authority over their respective subordinates through the
chain of command. Authority flows directly from top to bottom through various
managerial positions. The authority responsibility relationship is clearly
established. All managers in line organization have full authority to decide things
and act with respect to their related functions. In line organization department are
created for basic activities and departmental heads are responsible for all activities
performed in the department.

1.3 DEPARTMENTS OF KIA MOTORS

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1.3.1 ADMINISTRATION DEPARTMENT
It is considered as a primary part of KIA motors which controls and monitors all the
activities of all the departments and provides necessary official information and
support to all the departments such that each department could be highly devoted to
carry out their responsible tasks effectively and efficiently with better management
and operation.

1.3.2 SALES AND MARKETING DEPARTMENNT

Sales and Marketing department identifies customer’s current and future needs in
the automobile design and products and provide necessary services to satisfy their
needs. It is also responsible for planning, promotions, advertisements and
distribution of new auto product of KIA motors.
The furthermost function of the department is to sell vehicle and overcomes its pre-
planned selling targets by presenting different models of vehicles of customer wants
and briefing the products, its components and its performances to them and helps
them to make a decision. Certain parts of management department’s role are also
performed by it.

1.3.3 FINANCE AND LEGAL DEPARTMENT

Providing finance services to the customer under the limitation of the legal provision
are the main function of finance and legal department. Besides that, record keeping
of daily cash transactions, payment of bills of organization, wages and salaries etc
are the responsible tasks of these departments.

1.3.4 INVENTORY DEPARTMENT

Providing finance services to the customer under the limitation of the legal provision
are the main function of finance and legal department. Besides that, record keeping
of daily cash transactions, payment of bills of organization, wages and salaries etc
are the responsible tasks of these departments.

1.3.5 MAINTENANCE DEPARTMENT

This department is responsible for carrying out those managerial activities that
relates mainly for servicing of vehicles which have been sold already. This includes
receiving customers, their enquiries, their feed backs, their vehicles related
problems, job card preparations, billing and quotation making etc. For the record
keeping of all above things, department used DMS software for easy and safe
records. The main responsibility of after-sales service is to carry out the various
processes which makes sure that customers are satisfied with the product and
services of an organization.

1.3.6 DENT AND PAINT DEPARTMENT

KIA Motors has separate Dent and paint department which was established to
conduct the activities related to denting and painting purposes not only for service
or repair or maintenance of vehicles. This department is responsible for inspection
of damaged parts, quotation preparation of damaged parts; estimate the timings for

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 damaged work completion, forwarding the process to the spare parts management
for replacement and ordering of damaged parts and at last color mixing and formula
generation through software for painting purposes. Reviewing insurance documents
as compensation to customer for billing purposes is also high priority function of
this department.

1.4 Organizational software

KIA motors management has been using various reliable pc and networking-based
software in each department with the view to utilize human resources, technical
resources, and time in order to carry out the organizational activities in organized
and systematic manner. However, the most paramount software which comes in
handy is the M.U.T. (multi-unit tester)
This software assists to carry out each maintenance and managerial activities in
systematic ways. MUT is integrated diagnostic pc-based software for the diagnosis
of troubleshoots or faults or problems of vehicles related to the electrical
components, information and performance signals that are beyond the capability to
diagnose by Intelligence Tester.

Features of software:

• Ability to store and transfer vehicle data

• Wire accesses
• Integrated TIS Service Information
• View Current, Pending and History DTCs Simultaneously
• View Monitor Status Result and Details Simultaneously
• Fast Data Transfer Rate
• High-Resolution Graphing Capability
• Automatic Vehicle Identification
• Vehicle Reprogramming Utility

1.5 KIA products in Nepal

KIA Motors sells two types of products in Nepal, Internal Combustion engine
Vehicles (IC) and Electric Vehicles (EV). Models of ICV introduced in Nepal by the
company till the date are Sportage, Sorento, Rio, Soul, Picanto, Carens etc. While in
EV category, the company sells Soul EV model and Niro. Niro is one of the highest
ranges EV vehicles available in Nepal.

2 Personnel management

2.1 Managerial function

Planning: This involves formulating the future course of action. Planning includes
determining in advance the personnel programs and changes required that would
contribute to the achievement of goals.

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 Organizing: It involves establishing an intentional structure of roles for people.
Structural considerations such as the chain of command, division of labor, and
assignment of responsibility are party of the organizing function. The organizing
function establishes relationships among employees so that they can contribute
collectively towards the attainment of an organization’s goals.

Directing:
it involves directing all the available resources towards the common organizational
goals. Thus, direction is a vital management function, which ensures maximum
employee contribution and also helps in establishing sound industrial and human
relations. It also involves coordination between different departments.

Controlling:
it involves the measurement of performance against goals and plans, identifies
deviations and by placing the process back on track, helps in the accomplishment of
plans.

2.2 Operative functions

2.2.1 Recruitment and selection of manpower

At KIA Motors recruitment and selection of manpower is done by following ways
• Preliminary interview
• Receiving application
• Screening of application
• Employment test
• Employment interview
• Checking reference
• Physical examination
• Final selection

2.2.2 Wages and incentives (compensation)

It is governed by the principle of rewarding an employee extrinsically during and after

the course of his job for his contributions to the organization adequately, equitably
and in a fair manner. It encompasses salaries, incentives, bonus and fringe benefits.
This function comprises of Job evaluation, wage and salary administration, incentives,
bonus and fringe benefits.
1. Job evaluation is the systematic determination of the value of each job in
relation to other jobs in the organization.
2. . The process of formulating and operating a suitable wage and salary program
is known as wage and salary administration
3. Incentives are the rewards an employee earns in addition to regular salary based
on his performance or of the collective performance.
4. Bonus is primarily a share in the surpluses and is often directly related to the
organization performance.
5. Fringe benefits are monetary and non-monetary benefits including disablement.

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 2.2.3 Job evaluation and merit rating
The main objective of job-evaluation is to have systematic and rational wages
structure. It determines equitable wage consistency differential between different
jobs in the organization. The job is evaluated based on;
• Quality of works
• Experience
• Job performance
• Attitude and behaviour
• Quantity of work
• intelligence

2.2.4 Motivation

For the success of any organization, all the members should be fully committed
towards the organization. Motivation plays a key role towards this success. KIA
Motors motivates its members with different kind of facilities.

2.2.5 Training and development

This process aims to train and develop employees to improve and update their
knowledge and skills, so as to help them perform their jobs better. The process also
includes developing the attitudes, beliefs and values of the employees to match the
organizational needs. This comprises of performance appraisal, training,
management / executive development, career planning and development.
1. Performance appraisal is the process of evaluating the performance of an
employee on the job and developing a plan for improvement.
2. Training is the systematic development of the knowledge, skills and attitudes
required to perform a job.
3. Development is the concept of developing the employees in an organization to
meet future changes and challenges.
4. Career planning and development refers to identifying one's career goals and
formulating plans of reaching them. It attempts to harmonize an individual’s career
aspirations with organizational needs.

2.2.6 Employee relations & services

This function deals with employees as a social group that contributes to the
organization, it includes:
1. Maintaining employee records, analyzing them and developing information needed
for managerial decision making.
2. Increasing employee productivity
3. Keeping the employees satisfied and motivated
4. Maintaining a healthy and effective human organization.
5. Counselling services and developing employees into complete individuals and
responsible citizens.
6. Developing policies, rules, guidelines and procedures relating to employee
behaviour and ensuring their implementation and observance.
7. Developing team building, team management and leadership skills in employees.

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8. Developing a fast and suitable grievance management system to redress grievances.
9. Compliance with labour laws.
10. Personnel research.
11. Enhancing the quality of work life and personal life of the employees.

3 Management Information System (MIS)

As Management Information system (MIS) is computerized database of

organizational information and provides regular report on operation for every level of
management in a company, it is an important part of KIA Motors as in like the other
organizations. Authorized personnel retrieve the required information from MIS. MIS
manages to in give feedback to every personnel on their performances. As different
companies have their own method for the evaluation, the criteria are programmed in
the MIS of the company and the MIS system does the job of tracking the performances
of everyone based on those criteria and gives feedback accordingly.
It is obvious that fast response is a must thing for every company to have their
workflow to be fast and to have good impression among the customers. This is where
MIS is most handy for the company as it makes everything go faster and in more
secure way. MIS contains information of every department of the organization where
the departments being Finance Department, Inventory Department, Sales and
Marketing Department and Maintenance Department. Based on these facts, MIS
reports by comparing the company’s plan and the actual progress of every branches
and each department. Based on these reports, management takes the further required
actions. As different branches have different goals to meet, MIS keeps the records of
each branches and reports later based on the progress made by the branch. So, MIS in
KIA Motors is informative in Central level, Branch level and Department level as
well.
In KIA Motors, each department is responsible to enter the data into the MIS system.
This information is collected into the final database and MIS does its further work as
it has been programmed.
3.1 MIS in different departments

3.1.1 Finance Department

The financial status of the company is recorded by this Department in MIS. The
analysis of market for KIA motors is also easier to analyse as finance department
keep records of every financial transaction of other department in MIS. Using MIS,
finance department can make more scientific calculation of profit or losses and that
too in very less time than done manually.
3.1.2 Inventory Department
Inventory Department keep tracks of inventory left and accessories that have been
sold using MIS. As every inventory related data are provided in the MIS, Inventory
Department can easily calculate the order that has to be placed in order to avoid
inventory scarcity or excess of inventory and that too for minimum cost of order and
inventory. This department uses MIS for Material Requirement Planning.
3.1.3 Sales and Marketing Department
Sales and Marketing Department keeps records of vehicle sold and vehicle in stock
in MIS. Inventory Department takes into account the vehicle related accessories

8
 and tools while Sales and Marketing Department takes into account the complete
vehicle. This department also keeps records of activities done for marketing.
Record in MIS is such that it tracks the sales and stock of each model type of KIA
Motors vehicles.
3.1.4 Maintenance Department
Maintenance Department uses MIS to keep record of the vehicle that are repaired,
type of problem seen vehicles, attendance of employees etc. Based on this record,
company management uses it to determine payroll for the employees.
In general, MIS in KIA Motors helps in following things:
• Keep track of each employee’s performances.
• Keep track of financial behaviour of every branches and departments.
• Secure company’s information for future use.
• Save database with more security.
• Analysis of company business.
• To make future plans for the company.
• To make decision in some aspects as well.
• To make company response system fast and competitive.
• In analysis of Material Requirement Planning (MRP).
4 PRODUCTION SYSTEM DESIGN

4.1 Locational analysis

The location of KIA motors is at Chappal Karkhana, Kathmandu. Since it is nearer

to ring road, this location is an ideal location for any automobile sales and service
center. KIA motors is availed with facilities like communication, transport, power,
etc. Being located in urban area, KIA motors has advantage of proper market, higher
traffic flow, skilled labors, availability of required parts and equipment, etc.
The location is ideal for its customers as plant is accessible easily. The other small
workshops, such as lathe operators, are also readily available making the activities
of the plant more fluid. The circulation of parts and vehicles is fluid as there is very
good accessibility of road.
4.2 Plant building

The plant building of KIA motors is of single storied horizontal type.

The advantages of having this type of building are as follows:
• Greater flexibility in layout.
• Cheaper and efficient material handling.
• Efficient supervision.
• Facilitates expansion.
• Use of natural light and ventilation.
• Low cost and quick construction.
• Reduced fire hazards.
The disadvantages of having this type of building are:
• High cost of land.
4.3 Plant layout

All similar machines are grouped together and sections are divided accordingly in
KIA motors. KIA motors has process or functional or job type of plant layout.
The figure below shows the layout or KIA motors.

9
 Figure 2: Plant layout of KIA Motors

4.4 Flow pattern

The job flow pattern in KIA motors is O-flow among horizontal flow patterns.

Figure 3: Flow Pattern in KIA Motors

4.5 Material handling equipment and tools

Various material handling equipment are used throughout the workshops that
simplifies the work far easier. The following equipment are used in day to day work
in KIA Motors.
1. Lifting equipment:
There are different kinds of lifts that are used that are used for different purposes like
for washing or for maintenance. Some of them are listed below.

Hydraulic Washing Lift: It is the hydraulic system which is used for lifting of
automobiles for washing purpose.

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 Figure 4: Hydraulic lift

ii. Four post lift: This type of lift contains four post for mechanical support and base
for vehicle. It is driven by hydraulic pressure which drives rope and pulley. It is
generally used for lifting automobiles for gear box and clutch maintenance. A four
post lift makes it much easier to load and position the vehicle. The runways of the
four post lift make it easy for the operator to just drive onto the lift.

Figure 5: Four post lift

iii. Two post lift: The working of two post lift is similar to four post lift but
it comes in high voltage single phase motor.

iv. Hydraulic Jack: A jack is a device that uses force to lift heavy loads.
This is movable anywhere and has capacity of lifting up to 5 ton.

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 Figure 6: Hydraulic Jack

v. Hydraulic tappet: It is a hydraulic lifter which is used to lift automobile engines.

Figure 7: Hydraulic tappet

2. Toolbox
The toolbox is the box where the technicians put all the necessary materials like
wrench, ratchet wrench, screw driver, pliers, hammer, all kinds of sockets,
extensions and so on. All the technicians have their own toolbox.

12
 Figure 8: Tool Box
3.Impact gun:
It is used to tighten or loose bolts and nuts. It is driven by high speed motor and high
torque motor which rotates the socket.

Figure 9: Impact Gun

4.Air compressor:
It is used to compress the air for different purposes like cleaning of air filter and
other parts. Its pressure range is 0.5 to 10 bar.

5.Air dryer:
It is used to dry out the wetted parts of automobiles by flowing compressed air.

6.Vertical Stand:
It is used to hold the uplifted vehicles for safety purpose from falling down due to
equipment failure.

13
 Figure 10: Vertical Stand
7.Ramp:
It is used to put the vehicle in inclined position so as to change the lubricant easily.

Figure 11: Ramp

8.Washing Gun
It is used to create powerful water jet to wash vehicles.

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 Figure 12: Washing Gun
9.Others:
Other equipment used in workshops are grinder, vice, cutter, welding and so on.

5 PRODUCTION PLANNING AND CONTROL

5.1 Production

At KIA Motors, there is no production of vehicles or any other required

automobiles parts. It generally provides a service to those cars and
vehicles which have mechanical problems and lack of proper properties
of liquid that needed to change in vehicles. Production system generally
consists of the process of converting raw materials into fine and usable
products by performing set of manufacturing operations in a pre-
determined sequence that done in one or combination of different ways.
KIA Motors being only authorized KIA car provider in Nepal, it brings
all cars and required genuine parts from South Korea where these cars
and genuine parts are produced. So there is no production system at KIA
Motors.
5.2 Routing

At KIA Motors, for servicing and maintenance they make following

routing procedures.
1. Analysis of vehicles: When vehicles arrive at KIA Motors, their
staffs start to analyse the vehicles.
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 2. Decision make: After analyzation of vehicles they decide the
things that has to be done at that car and talk with car owner or
driver. Then they fill job card.
3. Vehicles parts requirements: If there is any need of changing any
parts of vehicles, they order that parts according to requirements.
Generally needed parts are, air filter, oil filter, fuel filter and brake
pad and so on.
4. Process to give service: After making all decisions they arrange all
process that has to be done according to available of mechanics,
electricians and workers.
5. Machines required for service: Generally, machines that need
during servicing are air impact, water gun, hydraulic lift and nut
bolt opening closing all part. They observe all these machines
whether they are in working condition or not and if they are
available or not.
6. Time required for each operation: After arranging all these
processes they estimate time that needed for completion of service
and then inform to vehicle drivers or owner.
After all these procedures they start to work. At first, they fill job
card that include all service that has to be done in vehicles. Then
car goes into working and maintenance section according to
requirements, where workers start to change engine oil, oil filter,
air filter and fuel if necessary. After that they start to wash out all
external parts of car and then they remove all water from body. In
this way they complete servicing of car. They also inspect brake of
car and if necessary, they also change brake pad.

5.3 Scheduling

Scheduling is a determination of time that is required to complete each

and every operation that hast to be done during servicing and
maintenance. At KIA Motors, each works that has to be done and time
required for the completion of that operations are given below.

Operations Time taken (minutes)

Job card fill (A) 5

Air and oil filter change (B) 10

Engine oil change (C) 5

Brake system inspection (D) 15

Brake pad change (E) 20

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Washing of car (F) 45

For dryness (G) 20

It can also be shown into Gantt chart which is given below.

Gantt chart servicing of car

A
B

0 20 40 60 80 100 120 140

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6 INVENTORY CONTROL
Inventory is the list of movable goods which help directly or indirectly for the
production or completion of operations or work for use. Here inventories deal with
the raw materials, tools, gauges, supplies etc. At KIA Motors there are generally two
types of inventories which are given below:

6.1 Direct inventories

• Purchased parts
• Finished parts

6.1.1 Purchased parts

At KIA Motors, purchased parts are air filter, AC filter, oil filter, engine oil,
fuel filter, brake pad, detergents and so on. These parts are the most important
parts for vehicles while providing servicing. That’s why these components are
always available at KIA Motors as needed for vehicles.

Figure 13: Spare parts of KIA Motors

6.1.2 Finished parts

For inspection of internal parts of vehicles, we may need computer for
scanning, vehicles for the movements for parts from one place to another
place, hydraulic lift to lift up the vehicle that has to be served, jacks, CC
camera for inspection of working situation of workers and so on. These all are
managed and provided at KIA Motors according to the requirements. Which
have made working operations more effective and helped to increase output
of company.

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6.2 Indirect inventories

• Tools (standard and hand tools)

• Supplies

Inventory control is the scientific method of finding how much stock should
be maintained in order to meet the servicing demands and be able to provide
right type of materials at right time in the right quantities and at competitive
price.

6.2.1 Tools (standard and hand tools)

During servicing of vehicles, splash guard has to be removed, oil filter, air
filter, fuel filter, brake pads and tyres have to be removed. For that purpose,
KIA Motors have all those tools which are needed to remove above mentioned
parts. Specially used tools are air impact, screwdriver, pliers, socket wrenches
and wrenches. These tools have increased the effectiveness of working level.

Figure 14: Tool Box

7 MATERIAL REQUIREMENT PLANNING

MRP is a computer-based technique, which help to convert master

production schedule (MPS) into detailed scheduled for the requirement
of the materials. MPS is accurate estimate of demand consisting of two
parts, an amount determined from order received and an estimate of
uncertain demand for the period obtained by statistical forecasting.
At KIA Motors, generally they import cars and the genuine parts required
for maintenance and servicing of car from South Korea. According to
MPS system they import cars as per the order received from costumers
while other parts required for maintenance and servicing are brought by
estimating previous records and using statistical forecasting.
At KIA Motors there is three types of MRP system, which are given
below.

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7.1 Master production schedule

In this system they estimate accurate demand of materials and parts that are
required to run company smoothly. Here they make sure the number of cars
that has to be bring according to demand received from costumers but they
increase certain demand according to requirement while other parts are
estimated according to previous record data.
7.2 Bill of materials

After making decision of order that has to be brought, they start to make bill
of materials with the number of materials that require for company to give
service to customers.
7.3 Inventory status file

Here they get every information about the materials that are in stock, order of
product that have yet to arrive, materials name, and demand of costumers
which are all saved in computer.

8 FORECASTING

Forecasting involves a study of the present and past data with a view to
estimate the future activities. Forecasting is done on three different
sections in KIA Motors. Sales forecasting, spare parts forecasting and
service vehicles forecasting are done. Sales forecasting is made using past
sales record and forecasted data. It is found that sales of vehicles are
increasing each year. Forecasting for servicing of vehicles is done by
collection of sales data and service vehicles data. It is found than all of
the vehicles sold within a year comes for regular servicing and
maintenance works as free servicing coupons are given and warranty of
the vehicle remains intact only if done so. But after expiry of warranty
period around half of the vehicles come for servicing. Thus, a rough
forecast of total vehicles that come for servicing is done. Forecasting is
made on the purchasing quantity of goods on spare parts section. The
forecasting technique used in KIA Motors is of direct or naive type .Three
monthly goods consumption status is taken as a base for future
consumption on same time period. Regular consumables like engine oil,
oil filter, brake pads etc. are ordered in bulk according to forecast while
other non -regular parts are ordered once in a while using forecasted data.

9 PLANT MAINTENANCE

Maintenance of the plant results in efficient and productive output of the

Organization. In KIA Motors, predictive plant maintenance is carried out. Machinery
conditions are periodically monitored and this enables the maintenance crews to take
timely actions, such as machine adjustment, repair or overhaul. Delay in plant
maintenance may cause serious problems which directly effects the workflow of the
system. So, there is periodical plant maintenance. As the workers are used to with
the machinery, they know the unusualness in the machineries. So working personnel
themselves predict the condition of the plant components.
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 Various plant components like air compressor, maintenance and washing bays, jack
screw, and other tools are regularly cleaned and serviced to maintain their working
condition and efficiency. Many parts and tools are kept in stock to replace the
existing tools so that any sudden break down of the equipment can be replaced in
short time to carry out activities without any disturbances.
10 QUALITY MANAGEMENT

Quality is directly related to customer satisfaction in an organization like KIA

Motors. Customer satisfaction depends upon following elements:
• Time of delivery
• Cost
• Service provided
• Behaviour
Quality of the product and the maintenance work is one of main objective
of the KIA Motors To maintain the quality product they use genuine part
from Mitsubishi Motors. Company has directed its full efforts towards
providing superior quality service for its customers at reasonable cost.
KIA Motors have been very good at addressing complaints from its
customers. They ensure high level of quality provided to the customer
and take steps to improve the quality after receiving suggestions from the
customer on current quality condition. All the working personnel are well
behaved and generous.
To improve the service quality technician are trained time to time and they are
trained by experts about current technology and modern vehicles. These all
factors help to improve the factors affecting quality.
As of now most of the customers are satisfied with service provided by KIA Motors. It
has been successful in establishing solid reputation and trust among its customers.

11 SWOT ANALYSIS

11.1 Strength
1. Strong management team: All the personnel in management team of
KIA Motors are excellent in their own fields with lots of experience.
2. Trained technician: KIA Motors has a group of highly skilled
technician possessing huge technical experience in automobile sector.
They are well trained to tackle any problem arising in the vehicles of
Mitsubishi vehicles.

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 3. Cooperation: Technicians are well cooperated with senior
technicians, supervisor and even by engineers as required by the situation.
The team as a whole works properly in harmony for the benefit of
company and satisfaction of customers.

4. Well-equipped: The Company is well equipped with inventory tools,

maintenance equipment, spares and all other accessories required.

5. Location: The location of the company is quite suitable because

ancillary industries are nearby e.g. lathe operator. Availability of facility
like electricity, transportation, communication arrangements helps in its
smooth running.

6. Computerized diagnostic: Fault finding and error analysis of vehicle

is done by computers through diagnostic software. This makes
maintenance quicker, easier and more reliable.

7. Division of work: There is proper division of work between staffs

operating in this company. So the staffs are well directed to their work
and getting specialized at their work.
Level of work and responsibility are properly distinguished for quality
and effectiveness.

8. Sole authorized dealer of KIA Motors: The company is authorized

dealer of KIA Motors.
Motors due to which it is responsible for maintenance of company vehicle
at least up to Warranty period. The company also gets training facility for
its workers and spare parts are genuine under warranty of the company.

9. Security: The company is secured from risk occurring in new vehicles

as Mitsubishi Motors is responsible for all the risk and damages occurring
within the warranty period.

11.2 Weakness
1. Lack of a state-of-the-art showroom: KIA Motors lacks a showroom
for Mitsubishi vehicles. The plant situated at Shantinagar, Kathmandu
acts only as sales outlet and service centre for the Mitsubishi Motors
vehicles.

2. Expensive: Maintenance of vehicles is expensive and labor charges

are quite high than ordinary workshops and due to this very few
customers bring their vehicle here for maintenance after the warranty
period.

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 3. Poor customer hospitality: There is not good arrangement of
facilities for waiting customer.

4. Lack of facilities to workers: The technicians especially from

dent/paint department are not provided with masks and glasses for their
safety which might cause a long-term problem on their health.

11.3 Opportunities
1. Impending expansion: KIA Motors is planning in expanding its
service center and establishing a showroom in another location.

2. Sports models: New and updated versions of existing models of

Mitsubishi vehicles can attract more customers and hence increasing the
sales. Models like L200 Sportero, Pajero Sport and Outlander have sporty
design to it which many people find appealing.

11.4 Threats
1. Too many players in the market: There are many vehicle distributors
in Nepal that have state of the art showroom and numerous service outlets
all across Nepal.

2. Unhealthy competition: There is very unhealthy competition

between numerous vehicle distributors in Nepal which is a major threat
to KIA Motors.

3. Competitor’s prices: Many competitors have lower price for their

vehicles as compared to that of Mitsubishi vehicles sold by KIA Motors.

12 METHODOLOGY
In order to ensure the success and effectives of the work we adopted
following methods.
12.1 Observation

By observing the activities that goes on the company like such as workers
customer relation, worker attitude towards works and monitoring of staff.

12.2 Participation

This method is used to get information by directly participation on

workshop and working on vehicles. Also, by use of computer software,
data filling and analysis and filling of the folders.

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12.3 Structured interviews

In this method we acquire information through directly interaction with

staff, technicians, customer about company services, activities historical
background and organization structure.

13 CASE STUDY

During our one-month internship at KIA Motors, different problems were

encountered. With the help of supervisor and technicians, we were able to
address the problem. This helped us to address the problem of the KIA
vehicles, their causes and their solutions. Some of the problems with their
causes and solution are listed below

1. Braking System

S.N. Problem Causes Solution

1 1. Worn brake pad 1. Replace with new

2. Insufficient brake oil 2. Fill sufficient brake

oil
Insufficient braking 3. Dirt deposit in the brake
shoe 3. Brake shoe was
grinded.

2. Steering System
S.N. Problem Causes Solution

1 Hard Steering 1. Leakage of Steering oil 1. hose pipe was worn

which was replaced.
2. Rack and Pinion Problem
3. Vibration in steering 2. Replace steering oil or
rack
3. Apply grease in
connections of steering

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 3. Cooling System
S.N. Problem Causes Solution

1 1. Low level of 1. Replace the

coolant thermostat
Over heating of Engine
2. Leakages of 2. Fill the coolant.
coolant
3. Seal the leakage.
3. Radiator not
working 4. Cleaned the radiator
4. Cooling fan not 5. Made adjustment
working due to lose in connection.
connection.

4. Fuel Supply System

S.N. Problem Causes Solution

1 1. Low pick up 1. Dirty fuel filter 1. Changed the

fuel
2. Insufficient fuel supply 2. Sensor problem
filter
3. Leakage from injector. 3. Problem in
injector 2. Checked and
made adjustment in
the sensor

3. Changed the
fuel injector

5. Gear box of EV

S.N. Problem Causes Solution

1 1. Sound from 1. Damaged 1. Changed

Gear Box bearing the defect
bearing

14 CONCLUSION AND RECOMMENDATION

14.1 Conclusion
KIA Motors is a successful business company in sector of automobile.
Being sole distributor of KIA Motors in Nepal, it has been working for
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 customer satisfaction from its day of inauguration. The prime objective of
this industrial attachment was to get the practical knowledge of the
automobile components, develop skill and understanding the works and
ethics of the organization. During our internship, we got the opportunity to
learn basic process of job handling as well.
We observed and study different system in automobile like transmission
system, fuel and exhaust system, steering system, engine and many more.
The difference in theoretical study and practical application was a barrier
to overcome. We easily adapted with the surrounding of the workshop
interacting with as much people as possible to learn new things. This one-
month internship program has provided us a platform to sharpen our
theoretical knowledge with practical application. We also studied the
maintenance and servicing procedure of automobile. We are confident
that we can solve simple automobile maintenance problems observed at
KIA Motors. Hence our one-month internship at KIA Motors was a worth
million.

14.2 Recommendation
During our one-month internship program at KIA Motors, we have
identified the following recommendations with regard to the service
station:
• The existing area of KIA Motors is compact. Increase in number of
vehicles by even one or two causes bad effect in work flow and thus
work delay occurs. Thus, expansion of the plant or establishment of
another plant in new location is highly recommended.
• The exhaust or ventilation system of the plant is insufficient. The
whole premise becomes polluted once painting job is carried out.
Thus, separate well ventilated paint section is recommended.
• There is no waiting room for customers. New waiting room for
customers is recommended to increase hospitality to customers.
• Number of experienced workers is very low, because of which work
delay occurs if complicated problem in vehicles occur.

15 References

Continental Group. (2019). Retrieved from Continental Group Web site:

http://continental.com.np/pages/kia.html

Mahajan, M. (2014). Industrial Engineering and Production Management. Delhi, India:

Dhanpat Rai and Co.
Dhakal, S. (2003). Implications of transportation policies on energy and
environment in Kathmandu Valley, Nepal. Energy Policy, 31(14),
1493-1507.

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