Description
An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.
Reports on Organizational Structure Training
History:
Marathon Electric is a global manufacturer of electric motors, generators and related products. Headquartered in Wausau, Wisconsin USA.The company was founded in 1913 and the company is composed of two strategic product lines: Motors and Generators. In India, Marathon Electric (formerly known as GE) was set in 2006. Marathon Electric India has manufacturing facilities, Marathon Electric India Pvt Ltd at Faridabad & Marathon Electric Motors (India) Ltd at Kolkata. Together, Marathon Electric in India is the Largest Manufacturer & Exporter of Motors. The strategic product lines include motors and Fans. A wide range of Fractional Horsepower motors serves applications such as Heating, Ventilating, Air-conditioning & Commercial Refrigeration (HVAC), General Purpose Applications, Evaporative Coolers & Cooler Kits, Washing Machines & Wet Rice Grinders. Our Integral Horsepower motors range upto 11KV serving a wide range of applications such as pumps, compressors, fans, crushers, conveyors, kilns etc. Marathon also manufactures Propeller, Axial Flow and Centrifugal Flow type of industrial fans used for various purposes. The Regal-Beloit Corporation acquired Marathon on February 27th 1997 for $240 million in cash. Regal-Beloit, based in Beloit, Wisconsin USA, founded in 1955 is a supplier of power transmission equipment and cutting tools. With 28 acqusitions in 25 years Regal Beloit Corporation is one of the largest manufacturers of electric motors in the world. Its Genteq brand brushless DC electric motors are found in almost all variable-speed residential HVAC equipment in the United States today, and its GE Commercial Motors, Leeson, and Marathon motor brands are used throughout the industrial sector. The company has manufacturing, sales, and service facilities throughout the United States, Canada, Mexico, Europe and Asia employing over 13,000 people. As of 2009, the company is ranked 833rd on the Fortune 1000, and is the 24th largest corporation in Wisconsin.
Marathon Electric Products:
• • • • • • • • • •
Generator AC motors Single phase AC motors Three Phase Cooler Motors and Fans Air Circulator Industrial and Exhaust Fans Crane series Wet rice grinder Cage Induction Motor HVAC Motor
Marathon Brands:
Marathon in India is also well known for its brands Genteq, AUE &CoolHome
The manufacturers of ECM motors mostly applicable for indoor and outdoor ventilation purposes
AUE high efficiency and heavy duty electric motors for wet rice grinders in NEMA frames.
Coolers and cooler kits
Founding Principles:
• • • •
Serve our customers according to their needs Produce the most efficient and long-lasting motors Commit to new technology and research Expand and diversify into new markets
Core Values:
• • •
Integrity - We are a company that is honest, trustworthy, candid, transparent and fair. High Energy - Our culture promotes a strong work ethic with high energy teams fostering a culture of inclusion and respect for all. Performance - Everyone is expected to perform and our stakeholders count on us to execute, meet commitments and continuously improve.
Initiatives:
• Customer Care Our future depends on the success of our customers. We will establish closer relationships with our customers, actively listen to their feedback and respond with a sense of urgency. • Globalization We want to be global for three reasons. First, we want to participate in high growth markets around the world. Second, many of our customers are global and we want to serve customers where they do business. Finally, we want to utilize our global capabilities to seek out the best talent and to remain globally competitive. • Innovation We will build the future of the Company on products that are new and needed. While we accept that with an innovation headset comes a certain degree of risk, we are committed to investing in new products, technologies and processes that deliver real value to our customers. • Sustainability The long term sustainability of our Company requires not only continuous growth andprofitability, but also that we take personal responsibility for the impact we have on ourplanet, and for the fair and just treatment of the people we employ. • Simplification Complexity is a serious disadvantage in business. We aim to simplify every aspect of our perations to eliminate complexities in order to increase our speed, improve our flexibility and reduce our costs.
Strategic Objective:
1. Deliver world class performance to customers through innovation, quality, delivery, responsiveness and cost
• • • •
Innovation : Provide creative and leading edge ideas and solutions that enable customers to differentiate their product offering. The goal is to exceed the innovation score of 6 out of 7 on the customer survey. Quality: To improve the defects per million by minimum of 25% each year in every business. Delivery: To be one of the customers most dependable suppliers. To meet 100% of the promises with 95% of the customer request, 95% stock availability and consistently deliver industry leading lead times. Responsiveness:To have a positive attitude and a sense of urgency with customers while offering them proactive solutions and etools for an optimal experience with Marathon. Marathon will try to improve the "Responsiveness" score in the customer survey every year in every business.
2. Develop Attract and retain the best people by providing and engaging work environment while helping them achieve their career goals.
•
Respectful Work Environment: Promote an environment where everyone is treated with dignity and respect, even in the most difficult situations. Build an atmosphere where diversity and global cultures are celebrated. Engaging Work Environment: Promote an environmrnt of teamwork and a common goal to continuosly improve the work chain, Marathon will strive for an atmosphere where creativity is encouraged and every employee has an oppourtunity to be heard.
•
3. Sustain top quartile performance in the diversified industrial sector with respect to revenue growth, profitability and cash flow.
Increase Revenue 15% Annually:
• • •
Achieve organic growth of 6% annually Deliver accretive acquisitions that add 9%to revenues each year. Focus will be technology, geographic expansion and attractive platforms.
Improve our profitability to deliver mid-teens operating margins
• • • •
Fully deploy the Compass Operating System. Reduce cost by 6% annually. Improve the product mix and pricing management. Reduce the complexities within the cooperation.
Maximize Capital Deployment
• • •
Achieve top quartile ROIC. Deliver top quartile cash cycle. Achieve free cash flow equals to at least 100% of net income. Fix, sell or close business where path to financial goals are unseen.
Marathon Electric - Business Units
India H.Q / MEIPL Faridabad, Haryana Manufacturing Unit of HVAC Single Phase Motors and Three Phase Motors Located at Sector - 11, Model Town, Faridabad is one of a well established and strategically designed and well planned BU of Marathon. Faridabad one of the leading industrial cities of Haryana, a popular choice for setting up industry due to its proximity to Delhi and its location on the Delhi - Mathura road. With leading companies like Goodyear, Havells, Escorts, JCB, ABB in proximity Marathon has precisely located themselves at the centre of the industrial town sector 11 just 500 m away from NH2 and 8kms from Delhi. Owning a major production unit at this location Marathon makes 11000 motors per day. With 2000+models and over 30+ frame sizes Marathon boasts to be capable enoughto resolve any customer needs within the given time. The Faridabad unit's present headcount turns out to be 1568, all well skilled and responsible to make Marathon a world class company and the largest motor manufacturers and exporters in India. Major production at Faridabad Plant: Fractional Horsepower Motors Custom Made Electric Motor HVAC, energy efficient for industrial machinery, Fractional Horsepower motors serves applications such as Heating, Ventilating, Airconditioning & Commercial Refrigeration (HVAC), General Purpose Applications, Evaporative Coolers & Cooler Kits,Washing Machines & Wet Rice Grinders.
MEMIL Kolkata, West Bengal Manufacturing Unit of Integral Horsepower HVAC Three Phase Motors, Axial, Centrifugal Fans
The Kolkata plant located at 58 Taratala Road, manufactures the HVAC three phase motors for industrial application. Kolkatta plant also offers Marathonelectric pioneer AirTechnology a wide range ofAXIAL Flow and Centrifugal Fanssuitable for Industrial ventilation, AirConditioning, Dust extraction and Fume extraction systems. Custom built fans catering to the specificrequirement of Steel Plant, FertilizerPlant, Tea Industry, Mine, Ship, PowerPlants (Thermal and Nuclear) ChemicalPlant etc. The Kolkatta plant has a headcount of 515 plus employees.
Rotor balancing at Kolkatta plant
Products at Kolkatta:
Axial Air flow
HVAC 3 phase motor
Global Technology Center - India I Hyderabad, Andhra Pradesh Regal Beloit Global Technology Center - India, also known as GTCI is located at the very heart of the city of Hyderabad. The technology center is the global hub for Engineering and Information Technology. GTCI has world class facility with Engineering and IT teams working collaboratively with Regal Beloit locations globally. This center started its operations in August 2005. Since then the technological improvements and world class delivery has made GTCI a truly competitive advantage for Regal Beloit Corporation. The engineering team's strength lies in the core areas of Electrical, Mechanical and Electronics design, simulation and testing, high end analysis using FEA tools, drawing and modeling using CAD software. The IT team drives all IT initiatives for Regal Beloit locations and businesses globally. Implementation and support for Regal Beloit's strategic ERP platform; Oracle, Web development, Business Intelligence, Digitization of processes and Global Helpdesk being major focal areas. The sourcing team which is collocated with the Engineering and IT teams delivers a huge advantage to the company by way of identification and qualification of high quality suppliers leveraging the supplier base in the Asian region. GTCI has very energetic and talented team which has been engaged in continuous improvement of all the business processes and productivity improvement, apart from delivering on the Technology and IT goals for the corporation.
Major Customers:
Marathon Electric being the largest Manufacturer & Exporter of Motors caters to several verticals of industries Carrier Trane Blue Star Advantec Al-Essa Awal Gulf Zamil Petra Rheem Videocon LG Voltas Hitachi
Policies and Procedures:
Policies are principles, rules, and guidelines formulated or adopted by an organization to reach its long-term goals. They are designed to influence and determine all major decisions and actions, and all activities take place within the boundaries set by them. Procedures are the specific methods employed to express policies in action in day-to-day operations of the organization. Together, policies and procedures ensure that a point of view held by the governing body of an organization is translated into steps that result in an outcome compatible with that view. They are a vital part of business management because they prevent each employee from having to reinvent the wheel and they provide a standard against which individual performance can be judged.
o Working Hours Policy Shift 1snt
d
2 3 rd
Starts 8:30 am 5:00 pm 1:00 am
Ends 5:00 pm 1:00 am 8:30 am
9:00 am Staff
6:15 pm
Staff have a grace period of 20 minutes i.e., after 9:20 am, late time shall be adjusted against concerned leave balance.
o Attendance Policy : Biometric fingerprint attendance record through which salary processing takes place
o Leave Policy :
• • • • • •
A maximum of 30 leaves are allowed in an year (sick and casual). 2.5 paid leaves per month Calendar year (Jan-Dec) followed during calculations All leaves to be authorized by Manager In case of emergency, leave application to be submitted upon resuming duty Maximum leave balance cannot exceed 30 at any time
o Salary :
Attendance 15th to 14th Checked and Approved by Time Office till 15th of next monthCredited by last week of month
Salary information sent to Payroll by 19th /20th
Credited by last week of the month
Procedures:
Employee Performance Summary
• • •
Online global tool for capturing and recording employeesperformance and their respective feedback. As part of the business talent review the tool is used to credits the employees as per his contribution and achievements recorded and verified by his reporting manager at the end of each calendar year. This procedure of having a global integrated view on all employees and their work helps the management for future references and to fill their internal vacancies.
JIRA
•
Online Global tool to log and track IT helpdesk related concerns.
Global Employee Management System
• • •
This global tool is used by the HR department to manage information about all employees and the new hires. Holds SSO ID for each employees IT records concerning Lotus Notes, Sametime, Oracle, etc. Maintains the record of hierarchy, salary and headcount details for each departments in each business units.
To improve the reporting between employees and managers Marathon have put in place a cloud solution to track the records of the employees performance. The tool also helps the employee to guide themselves to the development program as per their career goals EPS : Employee Performance Summary Tool to measure and provide meaningful feedback on job performance
• Corporate Training and Languages •
Business training or Development • Records Qualifications, Skills, Recognition, Community Involvement • Employment History • Accomplishments • Strengths and Development Plans • Next year Objectives • Career Interest The tool gives the employee a clear view about his performance in past and thereby helps him improve. The feedback segment helps the employee to have fruitful discussion with his managers and understand their future career opportunities
ESP : Corporate Objective
• • • •
EPS cloud solution helps the employees to align their performance goals and objectives with corporate. It helps the management with compensation, transfer decisions. With the integrated tab for all records i.e. work history, education, career interest it helps the management decide over promotions and relocations Training and Development Decisions.
EPS therefore is a major employee development and feedback tool, to show how it helps the management and the employees during the yearly appraisals and objective planning a process flowchart is shown in the next page. For better understanding the process flow is as given below:
Key Result Areas:
"Key Result Areas" or KRAs refer to general areas of outputs or outcomes for which the department's role is responsible. Importance of KRAs.
• Set goals and objectives • Prioritize their activities, and therefore improve their time/work management • Make value-added decisions • Clarify roles of department or individual • Focus on results rather than activities • Align their roles to the organization's business or strategic plan • Communicate their role's purposes to others
Key result areas (KRAs) capture about 80% of the department's work role. The remainders are usually devoted to areas of shared responsibility.
HR
• • •
Maintain and improve the work place Sustain the Harmonious Employee Relations HR innovation with policies and HR Operations
Marketing/ Sales • Advertisement Innovation • Sales • After sales customer feedback and service • Exploring new domain Finance • Audit • Balance Sheet • Financial Analysis International business Production
• •
Manufacturing • Quality Check Inventory Check
Significant Factors of Success:
Marathon Electric India is recognised as a leading brand of high tech motors and Home cooling application Products in the country. Marathon faced the following hurdles in India when it entered the market in 1995: • Low recognition of RBC/Marathon Brand among Indian Consumers • Tough competition from local and MNC brands • Value and price sensitive Indian consumers. • High import duty
Factors for Success
Innovative products and Marketing initiatives
To establish trust and confidence among Indian consumers, Marathon did active measures to bring in their face product i.e the brushless ECM motors to the Indian market The plastic body cooler motors brought in new dimension to the product range and to their competitors these motors were something yet to achieve. With the marketing penetration in Asia and other continents
• Launching the best in design and technology in India
To differentiate its products from the competition, Marathon brought in the world's best design and technologies to India from its parent. It launched its products in India around the same time as the global launch of products.
o Marathon pioneered the introduction of several world first features in its motors like the brushless ECM motors to large induction motors with ECM technology, and Plastic mould motor body.
• Customised products for Indian Consumers
Marathon understands the local cultural sensibilities to customise its products according to the Indian market. They have more then 20 thousand frame sizes to satisfy the needs of customers as per their required specifications.
Feedback EPS Process
•
Past Manager request the employee to share performance and accomplishments over the review period. Managers acknowledges accomplishments and provides feedback. Present Manager requests that the employee shares their strengths and developmental needs. Manager acknowledges strengths and developmental needs and provides feedback. Future Manager requests that the employee share future goals for growth and development. Manager acknowledges goals for growth and development thereby provide feedback while facilitating mutually created plans focusing on future growth.
•
•
Departments and Functions:
Engg Department: With 5 parallel production lines, each capable of manufacturing 900 motors per day, the management has selected well experienced and highly talented staff to take charge of each line. Every line has been subdivided into 3 departments Rotor Stator Shell
• Casting • Heat Treatment • OLE LE fixture • Groove • Varnish
• Stack • Winding • Lamination
• Casting •
Cutting • Paint
Finally they are assembled and with the on process test for lubrication, torque, Load/ No Load etc, they are finally made ready with name plates and packaging details to further go ahead for quality check by QC Engineers Each line works 24*7 thereby having a maximum production capacity of 11000 motors a day.
Marketing and Sales : The Faridabad unit being the local unit for Sales Head, major marketing and Sales planning are done here. The usual session meeting with Kolkata team and the nationwide regional sales engineers in Faridabad marks their regular update. Their regular effort on the guidelines of sales success marked out to me by the head himself They consistently make sure to improve every bit possible in the field of • Delivery • Service • Ease Of Approach • Expansion of Network • Brand Recognition With the raise in competition and diverse product requirement from customers the sales team and the engineer department keep themselves well organized and ready to meet the goal in the best possible way through Lean operations, 6 Sigma and other methods.
Engineering Department
GM Engg
Mfg
Manager
Mfg
Engr
Sunil Kakru
Manager
Dy Mgr
Sr. Engr
Design Manager
IHP Motor Manager, RnD
Finance Department: The FianancialDeaprtment has been divided to the following to carry out their specific task
• •
Accounts Payables:Take care of the fianacerelated to raw material purchase, vendor reconciliation etc. Accounts Recievable: Executive at this dept are responsible for the sales data recollection, discounts set on customers etc.They undertake the task of computing the total amounts received and the amount pending, in order to prepare a summarized accounts receivable report. Further, they analyze these reports to suggest the organizations ways to recover and reduce bad debts, utilize the incomes received and draft effective accounts receivable strategies. Bank / Treasury: They handle the AC payables and AC recievables on a real time basis. They handle their 5 present domestic bank accounts for the national transactions and the EEFC account for their international ones. This department is critical as 65% of the company production is for international clients the EEFC account is well maintained to be in sync with the Indian law. As per the recent update in foreign policy the 50 % of the foreign sales transferred in the EEFC accounts needs to be credited to domestic national accounts, such issues are taken care by the treasury department. General : Takes care of the transactions meant on indirect spend like office stationary, canteen etc. ExiseTax Department Sales Tax Income Tax
•
• • • •
The Annual Audit function has been outsorced to : KPMG (International Duties and Taxation) PWC (Internal Audit) Deloite (Statutory Tax Audit) Goyal&Associates - Rajesh Goyal (Cost Audit) As a private firm they didn't provide me with their balance sheets.
Projects And Productivity:
• • •
This department of Marathon Electric focuses on the future projects and works on it new plans to improve the production and reduce the price per motor cost. They have their set of engineers and management professionals to foreseethe expenses and calculate the profits. Once a project is designed its passed on to the upper management for approval and then with the budget approval the plans are implemented within the specified time period.
To maximize the savings and thereby reduce the price per motor cost, the Project and Productivity team follows well renowned measures of Kaizen, 5S and other lean method
1. Kaizen: "continuous improvement". • Everyone in Marathon , from upper management to the cleaning crew are encouraged to come up with small or big improvement suggestions on a regular basis. • The Project and Productivity team keeps a regular ceck at each idea. They provide their feedback to the heads and if it seems valuable on a long run they pass it on to the upper management at RBC for budget approval and therby implement the process as suggested. 2. 5S
rinciples for continuous improvement in the workplace. • SORT aims at eliminating everything that make the workplace cluttered and is not required for the job being performed. • SET ORDER (Organize) refers to the efficient placement, arrangement, organization and scheduling of the equipment and material. • SANITIZE (Sweep and Shine) refers to maintenance of tidiness and cleanliness in the workplace. • STANDARDIZATION refers to an ongoing, standardized, continually improving • SUSTAIN accounts for the discipline with leadership, involvement of people, integration into the performance measurement system. 5S Principles in Marathon are used more in reference to the Lean Manufacturing processes. A monthly graphical report is built to showcase the 5S regulation and a strict policy is maintained to keep it within the permissible limits Results: Till now they claim to have brought in more then 70 new changes within the last five years, As a result radical reductions in business-process cycle times, increase throughput, elimination of waste and bottlenecks, and improved morale and safety have been achieved rapidly and cost effectively.
Recommendations:
• • • •
More employee interactive programmes. Easy Employee to Mid management reach. Create better brand awareness for IHP Motors. HRD measures to retain young talent in a better way.
doc_994676051.docx
An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.
Reports on Organizational Structure Training
History:
Marathon Electric is a global manufacturer of electric motors, generators and related products. Headquartered in Wausau, Wisconsin USA.The company was founded in 1913 and the company is composed of two strategic product lines: Motors and Generators. In India, Marathon Electric (formerly known as GE) was set in 2006. Marathon Electric India has manufacturing facilities, Marathon Electric India Pvt Ltd at Faridabad & Marathon Electric Motors (India) Ltd at Kolkata. Together, Marathon Electric in India is the Largest Manufacturer & Exporter of Motors. The strategic product lines include motors and Fans. A wide range of Fractional Horsepower motors serves applications such as Heating, Ventilating, Air-conditioning & Commercial Refrigeration (HVAC), General Purpose Applications, Evaporative Coolers & Cooler Kits, Washing Machines & Wet Rice Grinders. Our Integral Horsepower motors range upto 11KV serving a wide range of applications such as pumps, compressors, fans, crushers, conveyors, kilns etc. Marathon also manufactures Propeller, Axial Flow and Centrifugal Flow type of industrial fans used for various purposes. The Regal-Beloit Corporation acquired Marathon on February 27th 1997 for $240 million in cash. Regal-Beloit, based in Beloit, Wisconsin USA, founded in 1955 is a supplier of power transmission equipment and cutting tools. With 28 acqusitions in 25 years Regal Beloit Corporation is one of the largest manufacturers of electric motors in the world. Its Genteq brand brushless DC electric motors are found in almost all variable-speed residential HVAC equipment in the United States today, and its GE Commercial Motors, Leeson, and Marathon motor brands are used throughout the industrial sector. The company has manufacturing, sales, and service facilities throughout the United States, Canada, Mexico, Europe and Asia employing over 13,000 people. As of 2009, the company is ranked 833rd on the Fortune 1000, and is the 24th largest corporation in Wisconsin.
Marathon Electric Products:
• • • • • • • • • •
Generator AC motors Single phase AC motors Three Phase Cooler Motors and Fans Air Circulator Industrial and Exhaust Fans Crane series Wet rice grinder Cage Induction Motor HVAC Motor
Marathon Brands:
Marathon in India is also well known for its brands Genteq, AUE &CoolHome
The manufacturers of ECM motors mostly applicable for indoor and outdoor ventilation purposes
AUE high efficiency and heavy duty electric motors for wet rice grinders in NEMA frames.
Coolers and cooler kits
Founding Principles:
• • • •
Serve our customers according to their needs Produce the most efficient and long-lasting motors Commit to new technology and research Expand and diversify into new markets
Core Values:
• • •
Integrity - We are a company that is honest, trustworthy, candid, transparent and fair. High Energy - Our culture promotes a strong work ethic with high energy teams fostering a culture of inclusion and respect for all. Performance - Everyone is expected to perform and our stakeholders count on us to execute, meet commitments and continuously improve.
Initiatives:
• Customer Care Our future depends on the success of our customers. We will establish closer relationships with our customers, actively listen to their feedback and respond with a sense of urgency. • Globalization We want to be global for three reasons. First, we want to participate in high growth markets around the world. Second, many of our customers are global and we want to serve customers where they do business. Finally, we want to utilize our global capabilities to seek out the best talent and to remain globally competitive. • Innovation We will build the future of the Company on products that are new and needed. While we accept that with an innovation headset comes a certain degree of risk, we are committed to investing in new products, technologies and processes that deliver real value to our customers. • Sustainability The long term sustainability of our Company requires not only continuous growth andprofitability, but also that we take personal responsibility for the impact we have on ourplanet, and for the fair and just treatment of the people we employ. • Simplification Complexity is a serious disadvantage in business. We aim to simplify every aspect of our perations to eliminate complexities in order to increase our speed, improve our flexibility and reduce our costs.
Strategic Objective:
1. Deliver world class performance to customers through innovation, quality, delivery, responsiveness and cost
• • • •
Innovation : Provide creative and leading edge ideas and solutions that enable customers to differentiate their product offering. The goal is to exceed the innovation score of 6 out of 7 on the customer survey. Quality: To improve the defects per million by minimum of 25% each year in every business. Delivery: To be one of the customers most dependable suppliers. To meet 100% of the promises with 95% of the customer request, 95% stock availability and consistently deliver industry leading lead times. Responsiveness:To have a positive attitude and a sense of urgency with customers while offering them proactive solutions and etools for an optimal experience with Marathon. Marathon will try to improve the "Responsiveness" score in the customer survey every year in every business.
2. Develop Attract and retain the best people by providing and engaging work environment while helping them achieve their career goals.
•
Respectful Work Environment: Promote an environment where everyone is treated with dignity and respect, even in the most difficult situations. Build an atmosphere where diversity and global cultures are celebrated. Engaging Work Environment: Promote an environmrnt of teamwork and a common goal to continuosly improve the work chain, Marathon will strive for an atmosphere where creativity is encouraged and every employee has an oppourtunity to be heard.
•
3. Sustain top quartile performance in the diversified industrial sector with respect to revenue growth, profitability and cash flow.
Increase Revenue 15% Annually:
• • •
Achieve organic growth of 6% annually Deliver accretive acquisitions that add 9%to revenues each year. Focus will be technology, geographic expansion and attractive platforms.
Improve our profitability to deliver mid-teens operating margins
• • • •
Fully deploy the Compass Operating System. Reduce cost by 6% annually. Improve the product mix and pricing management. Reduce the complexities within the cooperation.
Maximize Capital Deployment
• • •
Achieve top quartile ROIC. Deliver top quartile cash cycle. Achieve free cash flow equals to at least 100% of net income. Fix, sell or close business where path to financial goals are unseen.
Marathon Electric - Business Units
India H.Q / MEIPL Faridabad, Haryana Manufacturing Unit of HVAC Single Phase Motors and Three Phase Motors Located at Sector - 11, Model Town, Faridabad is one of a well established and strategically designed and well planned BU of Marathon. Faridabad one of the leading industrial cities of Haryana, a popular choice for setting up industry due to its proximity to Delhi and its location on the Delhi - Mathura road. With leading companies like Goodyear, Havells, Escorts, JCB, ABB in proximity Marathon has precisely located themselves at the centre of the industrial town sector 11 just 500 m away from NH2 and 8kms from Delhi. Owning a major production unit at this location Marathon makes 11000 motors per day. With 2000+models and over 30+ frame sizes Marathon boasts to be capable enoughto resolve any customer needs within the given time. The Faridabad unit's present headcount turns out to be 1568, all well skilled and responsible to make Marathon a world class company and the largest motor manufacturers and exporters in India. Major production at Faridabad Plant: Fractional Horsepower Motors Custom Made Electric Motor HVAC, energy efficient for industrial machinery, Fractional Horsepower motors serves applications such as Heating, Ventilating, Airconditioning & Commercial Refrigeration (HVAC), General Purpose Applications, Evaporative Coolers & Cooler Kits,Washing Machines & Wet Rice Grinders.
MEMIL Kolkata, West Bengal Manufacturing Unit of Integral Horsepower HVAC Three Phase Motors, Axial, Centrifugal Fans
The Kolkata plant located at 58 Taratala Road, manufactures the HVAC three phase motors for industrial application. Kolkatta plant also offers Marathonelectric pioneer AirTechnology a wide range ofAXIAL Flow and Centrifugal Fanssuitable for Industrial ventilation, AirConditioning, Dust extraction and Fume extraction systems. Custom built fans catering to the specificrequirement of Steel Plant, FertilizerPlant, Tea Industry, Mine, Ship, PowerPlants (Thermal and Nuclear) ChemicalPlant etc. The Kolkatta plant has a headcount of 515 plus employees.
Rotor balancing at Kolkatta plant
Products at Kolkatta:
Axial Air flow
HVAC 3 phase motor
Global Technology Center - India I Hyderabad, Andhra Pradesh Regal Beloit Global Technology Center - India, also known as GTCI is located at the very heart of the city of Hyderabad. The technology center is the global hub for Engineering and Information Technology. GTCI has world class facility with Engineering and IT teams working collaboratively with Regal Beloit locations globally. This center started its operations in August 2005. Since then the technological improvements and world class delivery has made GTCI a truly competitive advantage for Regal Beloit Corporation. The engineering team's strength lies in the core areas of Electrical, Mechanical and Electronics design, simulation and testing, high end analysis using FEA tools, drawing and modeling using CAD software. The IT team drives all IT initiatives for Regal Beloit locations and businesses globally. Implementation and support for Regal Beloit's strategic ERP platform; Oracle, Web development, Business Intelligence, Digitization of processes and Global Helpdesk being major focal areas. The sourcing team which is collocated with the Engineering and IT teams delivers a huge advantage to the company by way of identification and qualification of high quality suppliers leveraging the supplier base in the Asian region. GTCI has very energetic and talented team which has been engaged in continuous improvement of all the business processes and productivity improvement, apart from delivering on the Technology and IT goals for the corporation.
Major Customers:
Marathon Electric being the largest Manufacturer & Exporter of Motors caters to several verticals of industries Carrier Trane Blue Star Advantec Al-Essa Awal Gulf Zamil Petra Rheem Videocon LG Voltas Hitachi
Policies and Procedures:
Policies are principles, rules, and guidelines formulated or adopted by an organization to reach its long-term goals. They are designed to influence and determine all major decisions and actions, and all activities take place within the boundaries set by them. Procedures are the specific methods employed to express policies in action in day-to-day operations of the organization. Together, policies and procedures ensure that a point of view held by the governing body of an organization is translated into steps that result in an outcome compatible with that view. They are a vital part of business management because they prevent each employee from having to reinvent the wheel and they provide a standard against which individual performance can be judged.
o Working Hours Policy Shift 1snt
d
2 3 rd
Starts 8:30 am 5:00 pm 1:00 am
Ends 5:00 pm 1:00 am 8:30 am
9:00 am Staff
6:15 pm
Staff have a grace period of 20 minutes i.e., after 9:20 am, late time shall be adjusted against concerned leave balance.
o Attendance Policy : Biometric fingerprint attendance record through which salary processing takes place
o Leave Policy :
• • • • • •
A maximum of 30 leaves are allowed in an year (sick and casual). 2.5 paid leaves per month Calendar year (Jan-Dec) followed during calculations All leaves to be authorized by Manager In case of emergency, leave application to be submitted upon resuming duty Maximum leave balance cannot exceed 30 at any time
o Salary :
Attendance 15th to 14th Checked and Approved by Time Office till 15th of next monthCredited by last week of month
Salary information sent to Payroll by 19th /20th
Credited by last week of the month
Procedures:
Employee Performance Summary
• • •
Online global tool for capturing and recording employeesperformance and their respective feedback. As part of the business talent review the tool is used to credits the employees as per his contribution and achievements recorded and verified by his reporting manager at the end of each calendar year. This procedure of having a global integrated view on all employees and their work helps the management for future references and to fill their internal vacancies.
JIRA
•
Online Global tool to log and track IT helpdesk related concerns.
Global Employee Management System
• • •
This global tool is used by the HR department to manage information about all employees and the new hires. Holds SSO ID for each employees IT records concerning Lotus Notes, Sametime, Oracle, etc. Maintains the record of hierarchy, salary and headcount details for each departments in each business units.
To improve the reporting between employees and managers Marathon have put in place a cloud solution to track the records of the employees performance. The tool also helps the employee to guide themselves to the development program as per their career goals EPS : Employee Performance Summary Tool to measure and provide meaningful feedback on job performance
• Corporate Training and Languages •
Business training or Development • Records Qualifications, Skills, Recognition, Community Involvement • Employment History • Accomplishments • Strengths and Development Plans • Next year Objectives • Career Interest The tool gives the employee a clear view about his performance in past and thereby helps him improve. The feedback segment helps the employee to have fruitful discussion with his managers and understand their future career opportunities
ESP : Corporate Objective
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EPS cloud solution helps the employees to align their performance goals and objectives with corporate. It helps the management with compensation, transfer decisions. With the integrated tab for all records i.e. work history, education, career interest it helps the management decide over promotions and relocations Training and Development Decisions.
EPS therefore is a major employee development and feedback tool, to show how it helps the management and the employees during the yearly appraisals and objective planning a process flowchart is shown in the next page. For better understanding the process flow is as given below:
Key Result Areas:
"Key Result Areas" or KRAs refer to general areas of outputs or outcomes for which the department's role is responsible. Importance of KRAs.
• Set goals and objectives • Prioritize their activities, and therefore improve their time/work management • Make value-added decisions • Clarify roles of department or individual • Focus on results rather than activities • Align their roles to the organization's business or strategic plan • Communicate their role's purposes to others
Key result areas (KRAs) capture about 80% of the department's work role. The remainders are usually devoted to areas of shared responsibility.
HR
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Maintain and improve the work place Sustain the Harmonious Employee Relations HR innovation with policies and HR Operations
Marketing/ Sales • Advertisement Innovation • Sales • After sales customer feedback and service • Exploring new domain Finance • Audit • Balance Sheet • Financial Analysis International business Production
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Manufacturing • Quality Check Inventory Check
Significant Factors of Success:
Marathon Electric India is recognised as a leading brand of high tech motors and Home cooling application Products in the country. Marathon faced the following hurdles in India when it entered the market in 1995: • Low recognition of RBC/Marathon Brand among Indian Consumers • Tough competition from local and MNC brands • Value and price sensitive Indian consumers. • High import duty
Factors for Success
Innovative products and Marketing initiatives
To establish trust and confidence among Indian consumers, Marathon did active measures to bring in their face product i.e the brushless ECM motors to the Indian market The plastic body cooler motors brought in new dimension to the product range and to their competitors these motors were something yet to achieve. With the marketing penetration in Asia and other continents
• Launching the best in design and technology in India
To differentiate its products from the competition, Marathon brought in the world's best design and technologies to India from its parent. It launched its products in India around the same time as the global launch of products.
o Marathon pioneered the introduction of several world first features in its motors like the brushless ECM motors to large induction motors with ECM technology, and Plastic mould motor body.
• Customised products for Indian Consumers
Marathon understands the local cultural sensibilities to customise its products according to the Indian market. They have more then 20 thousand frame sizes to satisfy the needs of customers as per their required specifications.
Feedback EPS Process
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Past Manager request the employee to share performance and accomplishments over the review period. Managers acknowledges accomplishments and provides feedback. Present Manager requests that the employee shares their strengths and developmental needs. Manager acknowledges strengths and developmental needs and provides feedback. Future Manager requests that the employee share future goals for growth and development. Manager acknowledges goals for growth and development thereby provide feedback while facilitating mutually created plans focusing on future growth.
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Departments and Functions:
Engg Department: With 5 parallel production lines, each capable of manufacturing 900 motors per day, the management has selected well experienced and highly talented staff to take charge of each line. Every line has been subdivided into 3 departments Rotor Stator Shell
• Casting • Heat Treatment • OLE LE fixture • Groove • Varnish
• Stack • Winding • Lamination
• Casting •
Cutting • Paint
Finally they are assembled and with the on process test for lubrication, torque, Load/ No Load etc, they are finally made ready with name plates and packaging details to further go ahead for quality check by QC Engineers Each line works 24*7 thereby having a maximum production capacity of 11000 motors a day.
Marketing and Sales : The Faridabad unit being the local unit for Sales Head, major marketing and Sales planning are done here. The usual session meeting with Kolkata team and the nationwide regional sales engineers in Faridabad marks their regular update. Their regular effort on the guidelines of sales success marked out to me by the head himself They consistently make sure to improve every bit possible in the field of • Delivery • Service • Ease Of Approach • Expansion of Network • Brand Recognition With the raise in competition and diverse product requirement from customers the sales team and the engineer department keep themselves well organized and ready to meet the goal in the best possible way through Lean operations, 6 Sigma and other methods.
Engineering Department
GM Engg
Mfg
Manager
Mfg
Engr
Sunil Kakru
Manager
Dy Mgr
Sr. Engr
Design Manager
IHP Motor Manager, RnD
Finance Department: The FianancialDeaprtment has been divided to the following to carry out their specific task
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Accounts Payables:Take care of the fianacerelated to raw material purchase, vendor reconciliation etc. Accounts Recievable: Executive at this dept are responsible for the sales data recollection, discounts set on customers etc.They undertake the task of computing the total amounts received and the amount pending, in order to prepare a summarized accounts receivable report. Further, they analyze these reports to suggest the organizations ways to recover and reduce bad debts, utilize the incomes received and draft effective accounts receivable strategies. Bank / Treasury: They handle the AC payables and AC recievables on a real time basis. They handle their 5 present domestic bank accounts for the national transactions and the EEFC account for their international ones. This department is critical as 65% of the company production is for international clients the EEFC account is well maintained to be in sync with the Indian law. As per the recent update in foreign policy the 50 % of the foreign sales transferred in the EEFC accounts needs to be credited to domestic national accounts, such issues are taken care by the treasury department. General : Takes care of the transactions meant on indirect spend like office stationary, canteen etc. ExiseTax Department Sales Tax Income Tax
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The Annual Audit function has been outsorced to : KPMG (International Duties and Taxation) PWC (Internal Audit) Deloite (Statutory Tax Audit) Goyal&Associates - Rajesh Goyal (Cost Audit) As a private firm they didn't provide me with their balance sheets.
Projects And Productivity:
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This department of Marathon Electric focuses on the future projects and works on it new plans to improve the production and reduce the price per motor cost. They have their set of engineers and management professionals to foreseethe expenses and calculate the profits. Once a project is designed its passed on to the upper management for approval and then with the budget approval the plans are implemented within the specified time period.
To maximize the savings and thereby reduce the price per motor cost, the Project and Productivity team follows well renowned measures of Kaizen, 5S and other lean method
1. Kaizen: "continuous improvement". • Everyone in Marathon , from upper management to the cleaning crew are encouraged to come up with small or big improvement suggestions on a regular basis. • The Project and Productivity team keeps a regular ceck at each idea. They provide their feedback to the heads and if it seems valuable on a long run they pass it on to the upper management at RBC for budget approval and therby implement the process as suggested. 2. 5S
rinciples for continuous improvement in the workplace. • SORT aims at eliminating everything that make the workplace cluttered and is not required for the job being performed. • SET ORDER (Organize) refers to the efficient placement, arrangement, organization and scheduling of the equipment and material. • SANITIZE (Sweep and Shine) refers to maintenance of tidiness and cleanliness in the workplace. • STANDARDIZATION refers to an ongoing, standardized, continually improving • SUSTAIN accounts for the discipline with leadership, involvement of people, integration into the performance measurement system. 5S Principles in Marathon are used more in reference to the Lean Manufacturing processes. A monthly graphical report is built to showcase the 5S regulation and a strict policy is maintained to keep it within the permissible limits Results: Till now they claim to have brought in more then 70 new changes within the last five years, As a result radical reductions in business-process cycle times, increase throughput, elimination of waste and bottlenecks, and improved morale and safety have been achieved rapidly and cost effectively.Recommendations:
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More employee interactive programmes. Easy Employee to Mid management reach. Create better brand awareness for IHP Motors. HRD measures to retain young talent in a better way.
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