chapter- 1
INDUSTRY PROFILE
1.1 Automotive Industry
The automotive industry designs, develops, manufactures, markets and sells the world motor vehicles. In 2008, more than 70 million motor vehicles, including cars and commercial vehicles were produced worldwide.
In 2007, a total of 71.9 million new automobile were sold worldwide. Around the word, there were about 806 million cars and light trucks on the road in 2007: the burn over 260 billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly especially in India and china.

1.2 India
An embryonic automotive industry started in India in the 1940s. However for the next 50 years the growth of the industry was hobbled by the socialist policies and the bureaucratic hurdles of the license. Following, the economic liberalization in India from 1991 and the gradual easing of restrictions on industry, India has seen dynamic 17% annual growth in automobile production and 30% annual growth in export of automotive components and automobiles. India produces around 2 million automobiles currently. Total turnover of the Indian automobile industry is expected to grow from USF 34 billion in 2006 to 122 billion in 2016. Tata Motors has launched Tata Nano, the cheapest car in d world at USD 2200.

Indian automotive industry is contributing a significant portion to overall Indians GDP. This sector is growing and promising a lucrative future. Automotive sector also provides wide business and employment opportunities. With the liberalization of economy, the decades old monopolistic environment of the Indian automotive industry where only a handful of vehicle models were available with a long waiting list, gradually gave way to a highly competitive, complex and rapidly changing market which was not limited to domestic market alone. Today the number of vehicle models available are more than hundred and not a month goes without offerings of newer and more advanced mode.

Ironically for the Indian automotive industry, the cost of technology development has increased manifold and increasing product cost has put a squeeze on profit margin affecting their ability to outsource expensive technologies. Moreover, the technologies are not so easily available from outside .Instead of giving a license or setting up joint ventures with an industry, many intentionally renowned automobile manufacturers have started production in India to take advantage of grate commercial opportunities Indian market offer. Even in the existing joint venture, the control has slowing moved into hands of MNCs.

Indian automotive industry urgently needs technologies to produce fuel efficient, environmental friendly, lighter, safer and cost competitive engines, and vehicles. Advanced material and manufacturing techniques, technologies for using alternative fuels, emission abatement, fuel economy improvement, safety enhancement, engine management systems, and embedded vehicle control system are some of the areas where we must focus our efforts.

1.3 AT PRESENT, INDIA IS THE WORLD’S * Largest tractor and three wheel vehicle producer * Second largest two wheel vehicle producer * Fourth largest commercial vehicle producer * Eleventh largest passenger car producer. chapter- 2
COMPANY PROFILE

2.1 BACKGROUND AND INCEPTION OF THE COMPANY
BOSCH Group founded in 1886 in Germany as a workshop for precision Mechanics and Electrical engineering by Robert BOSCH Group. The BOSCH Group today is the largest automotive technology supplier in the world with a global group turnover of 47.3 billion Euros in the automotive technology, industrial technology, consumer goods and buildings technology in the fiscal 2010.

Robert BOSCH Group GmbH is a widely known company the world over, with presence across six continents. It has more than 300 subsidiaries and regional companies in over 60 countries. If its sale and service partners are included, then Bosch is represented in roughly 150 countries. Bosch operates 260 manufacturing locations worldwide of these 200 are located outside Germany in Europe, North and South America, Asia, and Australia. The company employs more than 283,500 associates worldwide.

The name Bosch is synonymous with innovation in automotive technology, industrial technology and consumer goods and building technology. The company is not just famous for automotive technology products like Gasoline, Chassis systems and Car electronics, it is also a pioneer in the areas of automation technology, metal technology, packaging technology, power tools, heating technology, house hold appliances, car multimedia systems and security systems. In 2010, BOSCH Group filed 3800 patent applications across the globe.
The special ownership structure of the BOSCH Group guarantees financial independence and entrepreneurial freedom of the Bosch group, making it possible for the company to plan over the long–term and to undertake significant up front investments in the safeguarding of its future. 92% of the shares capital of Robert Bosch GmbH is held by Robert Bosch sifting GmbH, the charitable foundation.

The slogan “Invented for Life” is part of its long tradition, through which it communicates the Group’s core competencies and vision, that includes technological leadership, modernity, dynamics, and quality and customer orientation.

2.2 ABOUT BOSCH LIMITED
Bosch has been present in India for more than 80 years –first via representative office in Calcutta since 1992, and then from 1951 via its subsidiary Bosch Limited (formerly Motor Industries Company Limited)
Bosch Limited (then MICO) began operations with a two man team in Chennai; its activities were importing and marketing BOSCH Group automotive products. Soon after the company set up a manufacturing plant for sparkplugs and fuel injection equipment for diesel engines in Bangalore.

Bosch Limited today is the country’s largest auto component manufacturer and also one of the largest Indo-German companies in India. The BOSCH Group holds close to 71.18% stake in Bosch Limited. The company is headquartered in Bangalore with manufacturing facilities in Bangalore, Nasik, Naganathapura, Jaipur and recently-opened facility in Goa. The plants are TS 16949 and ISO 14004 Certified. Bosch Limited has its presence across automotive technology, industrial technology and consumer goods and building technology, with strength of over 11,700 associates. The company recorded a turnover of Rs. 6630 crores in 2010.
The company has excellent R&D and manufacturing capabilities and a strong customer base. Its market leadership is testimony to the high quality and technology of its products. It also has a strong presence in the Indian automotive services sector. Bosch’s service network spans across 1,000 towns and cities with 5000 sales outlets and over 4,000 authorized representatives who ensure widespread availability of both products and services.

Bosch Ltd: - Bosch is also represented by five other group companies in India. 1. Robert Bosch Engineering and Business Solutions Ltd: - Robert Bosch Engineering and Business Solutions Ltd., a 100% subsidiary of Robert Bosch GmbH, which is present in India since 1998, has emerged as one of the largest Bosch development centres outside Germany. It provides end to end engineering and technology solutions for all the business sectors of automotive technology, industrial technology, consumer goods and building technology. 2. Bosch Rexroth India Ltd: - Bosch Rexroth India Ltd., established in 1974 in India, serves customers through its manufacturing facilities and service centres in Ahmadabad and Bangalore. 3. Bosch Chassis Systems India Ltd: - Bosch Chassis Systems India Ltd., established in 1982 as Kalyani Brakes Limited in India, is amongst the leading manufacturers of brakes in the country. It currently manufactures a range of Hydraulic Brake Systems meeting the stringent quality norms of many leading Indian and international vehicle manufacturers. 4. Bosch Automotive Electronics India Private Ltd: - Bosch Automotive Electronics India Private Ltd. is a 100% subsidiary of Bosch Group and is engaged in the manufacture and sale of electronic devices and electronic control units. The Company is based at Naganathapura in Bangalore. 5. Bosch Electrical Drives India Private Ltd: - Bosch Electrical Drives India Private Ltd. is a joint venture company. It drives for various automotive applications such as window lift drive, wiper system, engine cooling fans etc.

Robert Bosch Worldwide
The Bosch Group is one of the world’s biggest private industrial corporations. Headquartered in Stuttgart, Germany, the Bosch Group has some 280,000 Executives worldwide, and generated annual sales revenue of 38.2 billion Euros in 2009. There are about 300 subsidiary and regional companies around the world.

History of Bosch * 1886 Opening of Workshop for Precision Mechanics and Electrical Engineering in Stuttgart on 15 November * 1887 First low-voltage magneto from Bosch for stationary petrol engines * 1897 First low-voltage magneto ignition for motor vehicle internal combustion engines * 1901 First plant in Stuttgart * 1902 First commercially viable high-voltage spark plug * 1906 Production of 100,000th magneto ignition * 1906 Introduction of eight-hour working day * 1910 Opening of plant in Stuttgart-Feuerbach * 1913 Start of production of headlights * 1918 American assets seized; later become American Bosch Magneto * 1926 Start of production of windscreen wipers * 1927 First diesel fuel injection pump * 1929 First TV Set from Fernseh AG division * 1932 Formation of Junkers & Co. * 1932 First power drill from Bosch * 1932 First Blaupunkt car audio * 1936 First diesel fuel injection pump for passenger cars, such as the Mercedes-Benz 260D * 1942 Death of the company founder Robert Bosch on 12 March * 1962 Worcester Bosch Group opens in England * 1964 Robert Bosch Foundation * 1970 Company headquarter moves to Gerlingen * 1976 First oxygen sensors * 1978 Worldwide first Anti-lock Braking System (ABS) * 1979 First electronic engine management system (Motronic) * 1982 Company acquires photographic equipment division from Braun AG * 1986 Traction control system (TCS) on the market * 1995 Acquisition of Atco-Qualcast Ltd * 1995 First Electronic Stability Control - Electronic Stability Program (ESP®) * 1997 Common rail diesel fuel injection * 2000 DI-Motronic gasoline direct injection system * 2003 Acquisition of Buderus AG * 2003 Digital car radio with MP3 drive and digital recorder (Blaupunkt) * 2003 The formation of the Robert Bosch Tool Corporation and acquisition of S-B Power Tool Corporation and Vermont American Corporation including the brand names for Bosch Power Tools, Skill Power Tools, Dremel, Vermont-American, Primark brands, and Gilmours * 2004 Third-generation common rail diesel injection for cars, with piezo injectors * 2004 Bosch opens new Technology Center in Abstatt * 2006 Bosch acquires Telex Communications, a maker of hearing aids, headsets and audio equipment, and partners with Daewoo to build Bosch refrigerators in Mexico * 2007 The Bosch Communications Systems business unit is created to manage the brands and products of former Telex Communications * 2008 Tata Nano, the $2,500 People's Car powered by Bosch-designed engine is unveiled at Auto Expo in New Delhi. Bosch plans to acquire majority stake in Ersol photovoltaic’s. * 2009 Bosch acquires LR Nelson, a maker of lawn and garden products, including ponds, and merges the Gilmour’s and Nelson brands into Bosch - Garden and Watering. * 2009 Manufacture of Electronic Control Unit and Anti lock Brake System. * 2010 Bosch started production of predictive emergency braking system, which alert of emergencies & automatically applies brakes if needed * 2010 Launch of A4000 pump meeting BS3 norms of commercial vehicles in India

2.3 NATURE OF BUSINESS CARRIED
Automotive Technology
Business divisions: Diesel and Gasoline Fuel Injection Systems, Car Multimedia Systems, Auto Electricals and Accessories, Starters and Generators, Energy and Body Systems.
Industrial Technology
Business divisions: Packaging Machines, Special Purpose Machines, Solar Energy
Consumer Goods and Building Technology
Business divisions: Power Tools, Security Systems

2.4 BOSCH VISION
Creating Value – Sharing Values
As a leading technology and services company, we take advantage of Bosch global opportunities for a strong and meaningful development. Bosch ambition is to enhance the quality of life with solutions that are both innovative and beneficial. We focus on Bosch core competencies in automotive and industrial technologies as well as in products and services for professional and private use.

We strive for sustained economic success and a leading market position in all that we do. Entrepreneurial freedom and financial independence allow Bosch actions to be guided by a long-term perspective. In the spirit of Bosch founder, we particularly demonstrate social and environmental responsibility – wherever we do business.

Bosch customers choose us for Bosch innovative strength and efficiency, for Bosch reliability and quality of work. Bosch organizational structures, processes, and leadership tools are clear and effective, and support the requirements of Bosch various businesses. We act according to common principles. We are strongly determined to jointly achieve the goals we have agreed upon.

As associates worldwide, we feel a special bond in the values we live by – day for day. The diversity of Bosch cultures is a source of additional strength. We experience Bosch task as challenging, we are dedicated to our work, and we are proud to be part of Bosch.

2.4.1 BOSCH MISSION
BeQIK – Be Better, Be Bosch – Profit secures our growth * Quality * Innovation * Customer Orientation
BeQIK gives us the bearing for our actions. Our objective is to continuously improve all our internal processes – so that growth and economic success can be secured in the long term.
BeQIK
* Quality is our most valued asset * Innovation today ensures businesses tomorrow * Customer orientation inspires customers and associates
BeBetter
* We want continuous improvement * We want to be better than our competitors
BeBosch
* We offer outstanding products and services worldwide * We keep our promises

2.4.2 QUALITY POLICY * We strive to exceed the expectations of our customers by offering products and services of high quality standards. * Quality encompasses our assets throughout their life cycle, and our initiatives towards environmental protection and safety. * We effectively deploy methods and told to provide cost effective solutions to meet our quality objectives. * We involve our business partners in our endeavor towards improvements across the supply chain.

Quality Principles * Our goal is to fully satisfy our customer’s expectations through our quality of our products and services. * Quality and quality improvements is every associate’s responsibility and ultimate goal from our board of directors to their apprentices. * Our directives, processes, systems and goals are based on requirements from international standards, consumer’s expectation, our knowledge and experience. Knowledge of and compliance with these directives and processes in the foundation of our quality. * Quality means doing right in the beginning thus preventing failures in the end. Continues improvements for quality of processes lowers costs and improves productivity. * Avoiding failure is more important that eliminating defects. We systematically apply methods and tools, preventive quality assurance systematically, learn from mistakes and prevent their root causes without delays. * Our suppliers contribute systematically to the quality of our products and services. Therefore our suppliers have to live up to standards we have adopted.

2.5 PRODUCT/SERVICE PROFILE
Product Range
A. Automotive Technology – Robert Bosch
Diesel Systems * Common Rail System for passenger cars, commercial vehicles & off-highway vehicles * Axial Distribution injection pumps * Multi Cylinder Inline Injection Pumps (PE) * Single-Cylinder Injection Pumps (PF) * Elements * Delivery Values (DV) * Governors * Injection Timers for PE pumps * Fuel Filter & Water Separators * Glow Equipment * Electronic Control Unit

Gasoline system * Electronic Control Unit * Fuel Injectors * Lambda Sensors * Engine Speed Sensors * Knock Sensors * Hot Film Air Mass Meter * Pressure Regulators * CVT Belts * Connectors & other plastic parts

Starters & Generators (Auto Electrical) * Starter Motors * Generators

Spark Plugs * Spark plugs for 2, 3 and 4 wheelers and industrial applications * Long Life Plugs :Nickel Yttrium & Twin Electrode

Test Equipment & Diagnostics * Fuel Injection Pump Calibration Test Benches * Nozzle Tester * Auto Electrical Test Bench * Diagnostic Tool : KTS series * Engine Analyzer : FSA series * Engine Analyzer : BEA series * Chassis System Check * Battery Service Equipment * Wide range of service tools for unit & vehicle repairs * Software / Teach ware : ESI ( tronic ), MSI, K-CD

B. Industrial Technology
Industrial Equipment * Special Purpose Metal Cutting / Grinding / Honing / Lapping/ Super Finishing machines. * Semi / Fully Automatic Assembly Machines * Semi / Fully Automatic Inspection & Measuring Equipment * Cleaning Machines * Electro-Chemical Machines * Tools, Gauges & Fixtures * Exhaust Gas Re-circulating Unit (EGR) * Test Equipment

Bosch Packaging Machines * Vertical Form Fill & Seal Machines * Dosing System – Cup Filler, Auger Filler, Weighed & Pump * Pharmaceutical Packaging Machines * Confectionary Processing & Packaging Machines

C. Consumer Goods & Building Technology Bosch Power Tools * Construction Tools * Wood Working Tools * Metal Working Tools * Cordless Tools * Do- It Yourself Tools * Lawn & Garden Tools * High Pressure Water Jets * Specialty Tools * Pneumatic Tools * High Frequency Tools * Automation Technology * Accessories for all Tools * Fischer Fixing System

Bosch Security Systems * Fire Detection * Intrusion Detection System * CCTV Surveillance * Access Control * Integrated Security Management & BIS * Public Address & Emergency Sound System

2.6 AREA OF OPERATION
The Bosch Group is one of the world’s biggest private industrial corporations. Headquartered at Stuttgart, Germany. There are about 300 subsidiary and regional companies around the world. In India, Bosch is a leading supplier of technology and services, and has a strong presence in the country at numerous locations in diverse industry segments.

Bosch Limited is India’s largest auto component manufacturer and also one of the largest Indo – German company in India. Bosch Limited has a strong nationwide service network which spans across 1,000 towns and cities with over 4,000 authorized representations to ensure widespread availability of both products and services. The company is headquartered in Bangalore with manufacturing facilities at Bangalore, Naganathapura (near Bangalore), Nasik, Jaipur and Goa.
Number of Branches in India
Bosch manufacturing facilities are located in Bangalore with state of the art plants in Bangalore, Naganathapura, Nasik, Jaipur and Goa. All the 5 plants are TS 16949 and ISO certified.
Bangalore Plant
Manufactures multi cylinder, PE pumps, mechanical governors, elements, delivery valves, special purpose machines, packaging machines, power tools and will foray into the production of common rail pumps from 2006 onwards.
Built areas 109.948m2
Land area 311.140m2
Employees more than 5500

Nagnathapura Plant
RBIN (Bosch Ltd. India) Naganathapura Plant, inaugurated in the year 1990, is the 3rd plant among the 4 plant of RBIN. The plant houses productions hangars for Spark Plugs, Glow Equipment, Starter Motors, Alternators, Regulators and PF Pumps. Portions of the plant are leased out to RBAI and Bosch Training Center.
Built area 47.494m2
Land area 266.100m2
Employees more than 1279

Nasik Plant
Set up in 1969 is specialized in manufacture of clinical and Euro series of nozzles and injectors to automobile industries recently the Nasik Plant has ventured into the production of CRI ports catapulted by Bosch Endeavour in common rail technology.
Built area 67617m
Land area 405.060m2
Employees more than 2500

Jaipur Plant
Set up in 1999 the Jaipur plant manufactures BE (Mechanical) pumps for domestic market and export purpose. The VE pump (Distributor fuel injection pump) is designed to meet Bharat state 11 & Euro 11 emission norms. These pumps are used in 3-6 cylinder vehicles.
Built area 16345m2
Land area 202350m2
Employees more than 1200

COUNTRIES COVERED
Middle-East and Africa (UAE, EGYPT, KENYA), Neighboring countries (Sri Lanka, Bangladesh,) South East Asia (Philippines, Thailand, Indonesia).

2.7 OWNERSHIP PATTERN

Since 1964, Bosch’s majority shareholder has been Robert Bosch Stiftung GmbH, a charitable foundation. The Stiftung carries on the charitable and social endeavors of the company’s founder in contemporary form. It sees itself as a foundation that pursues its objectives both with programs and institutions of its own, and by supporting suitable projects and initiatives proposed by others for tackling the tasks faced by society.

Today, the Robert Bosch Stiftung, a charitable foundation, holds a 92 percent stake in the share capital of Robert Bosch GmbH. The share dividend received by the foundation is used exclusively for charitable purposes, i.e. to support general medical care, international understanding, social work, training and education.

Robert Bosch
Stiftung GmbH
92% Beteiligung
Kein stimmrecht

ROBERT BOSCH GmbH
Stammkapital 1.2 Mrd EUR
Robert Bosch
Industrietreuhand KG
0.01% Beteiligung
93%stimmen

Familie Bosch
8% Beteiligung
7% stimmen

2.8 COMPETITORS INFORMATION * * Modi Champion * Delphi * Denso * Doowon * Electrex * Nippon * NGK * Siemens VDO * Zexel * Cav England * Lucas * TVS

2.9 INFRASTRUCTURAL FACILITIES Bosch infrastructure is one of the best in the country. The individual work place is designed as per the international standards which make the employees feel comfortable, proud, happy and safe. Medical Facilities * Medical centre works round the clock and also provides a 24 hours ambulance service * The company has also associated with important hospitals, labs and senior medical consultants in the city for the treatment of the employees * They are provided with annual master health check-up * Special schemes like hospitalization scheme, Manipal hospital scheme and Medical reimbursement scheme are provided to the employees

Canteen Facilities * Food is provided to all the employees and 24hrs a day providing breakfast, lunch, dinner, tea/coffee and snacks for 8500 employees in 4 shifts. * It is well equipped and accommodation for more than 1500 persons at a time * The food provided in the organization is 100% hygiene. Workings of the canteen is guided by an advisory committee Transportation Facilities * The company provides transport facilities for employees Library Facilities * The company has the facility of both general and technical library The general library is used by the project trainees also Other Facilities * Sports club * Fine Arts Society looks into the cultural events and various programmes conducted during the course of the year. * Uniform, shoes, socks and soap is given to employees on the job by Bosch. * Accident benefit scheme * Holiday homes and time share holidays * Vehicle expenses and reimbursement * Death relief scheme.

2.10 ACHIEVEMENTS/AWARD
February 1, 2012: Bosch Limited wins Car & Bike Award 2012
The accolades and awards keep rolling in for Bosch Limited. Once again, Bosch Limited was the proud winner of the Subros Car & Bike Award 2012 in the “Best Automotive Component Manufacturer” category.

Bosch Wins “Car & Bike” Award 2011
Receiving yet another glory in its 125th Anniversary Year, Bosch Limited was conferred with the Car & Bike India Award in "Best Auto Component Manufacturer" category. The Car & Bike Award function was held at Mumbai on January 13, 2011. Bosch was adjudged the best among two other nominees, namely Delphi and Endurance.

Jan. 07, 2010: NDTV Car & Bike Award - ‘Automotive technology of the year’
This accolade recognizes the contributions made by Bosch in India, for localizing ABS (Antilock Braking System) production. Bosch is the only automotive supplier to manufacture ABS in India for passenger cars and light commercial vehicles. ABS is crucial to safety while driving, as it makes braking safer, by preventing the wheels from locking.

April 15, 2009: DHL - CNBC TV18 International Trade Award
Bosch won this honor in the category of auto component industry, for doing extremely well in exports through its low-cost solutions. The award recognizes the company’s commitment and innovations that address the needs of the Indian market, and keep Brand India alive.

Feb. 20, 2009: NDTV Car & Bike Award – ‘Auto component manufacturer of the year 2009’
Bosch was chosen as the best in the auto component industry of India for the year 2009. These awards are considered as benchmarks for auto excellence in India and widely trusted by consumers, manufacturers and auto experts alike. The award recognizes the best in the automobile industry of India.

Jan. 7, 2009: UTVi Autocar Award
Bosch and Mahindra & Mahindra won the ‘Best Innovation of the Year’ UTVi Autocar Award. The award recognizes Bosch innovation start/stop system which contributes to fuel efficiency at a very reasonable cost. The Mahindra Bolero Micro Hybrid is the first vehicle in India to integrate this technology in their new car.
June 21, 2008: Business Standard Award ‘Star MNC of the year’
Bosch was noted for its cutting edge technologies, especially for designing and delivering low cost high quality fuel injection system and for pioneering the common rail system in India.
Jan. 10, 2008: NDTV Car & Bike Award - 'Car Technology of the year'
Bosch not only setup the common rail injector and pump manufacturing projects in record time, but also pioneered the new application of Common Rail in low cost car segment. This is a revolutionary leap achieved by Bosch in India, which is the pioneer of Common Rail technology in the rest of the world as well.

Jan, 12, 2007: NDTV Profit Car & Bike Award 2007 – ‘Automotive Technology of the year'’
Audited by PricewaterhouseCoopers, these awards honored the best in the Indian automotive industry for their handiwork in calendar year 2006. Bosch was presented with the award for its application of ABS / ESP technology.

Jan. 4, 2007: CNBC-TV18 Autocar Auto Award – ‘Auto Component manufacturer of the year’
Bosch Limited was chosen for the mark that it has made both in the domestic and international markets with its superior technology and products. These awards seek to reward exemplary performance in the industry in 2006 based on a comprehensive set of attributes including design, technology, value, product experience and so on. The selection process truly reflects the choices and sentiments of all stakeholders and justifies their stature as benchmarks in auto excellence.

Aug. 17, 2006: Dun & Bradstreet American Express Corporate Award -–‘Top Indian company in the Auto Components sector’
The award recognizes the twin virtues of size and growth in the organizations of corporate India, from a derived list of top 500 companies in the country. Bosch Limited was selected as the best amongst the top 10 auto component manufacturers in India.
Aug. 10, 2006: EEPC Award – ‘Star Performer for outstanding export performance’
The Engineering Export Promotion Council (EEPC) conferred the '‘tar Performer'’for outstanding export performance in the large enterprises category on Bosch Ltd, which garnered a total export figure of Rs 423 crores in 2005, almost twice as high as Rs 193 crores in 2001.

Jan. 12, 2006: NDTV Profit Car India Award – ‘Safety & Technology Award’
Bosch was presented with this award for its pioneering work on the new age direct injection diesel fueling systems, with notable emphasis in the range of common rail diesels. Also taken into account was the persistent focus on unit injector systems which are entering the scene in the high profile high aspiration D-segment cars. The jury considered not just the technology but its bearing on safety, and the benefits it brought to automotive users as well as the potential it has for India.

Jan. 8, 2005: Overdrive–Auto Monitor Award – ‘Auto component manufacturer of the year’
Recognized for innovations in technology and the scale and size of manufacturing capabilities, the award also commemorated the customer satisfaction earned by Bosch over the years, performance, quality and diverse range of products.
This Annual Award is the “Oscar” for the automobile industry in India and recognizes the “best” in the industry in association with reputed industry bodies like CII, SIAM & ACMA.

2.11 WORK FLOW MODEL

The work flow model of Bosch can be interpreted in two phases * Information flow * Material flow Bosch believes in the concept of “customer is king” this is depicted in the workflow model which starts with customer signifying the pull system of production (i.e. production against customer order). Sales and marketing department receives purchase order from the customer. R&D division takes decision with respect to product design and specification. Engineering wing analyses the order and decides upon in house manufacturing or outsourcing. The next step is to procure the component and assembling the final product, or acquire raw materials and convert it into finished product. Finally dispatch the end product to logistics department, which is entrusted with the responsibility of transit of consignment to the ultimate consumer.
2.12 FUTURE GROWTH AND PROSPECTS The auto component industry appears to have a bright future with the existing manufacturing planning and capacity and in addition moreover new plants are being setup with foreign collaboration. The Indian auto component industry is highly fragmented with over 3000 players in organized sector and estimated 500 units in the small sector. Vocationally the industry has developed major vehicle manufacturing centers. Small and medium enterprise sector is keen on taking a number of technology investment initiatives in order to become self reliant and globally competitiveness according to a confederation of Indian Industry survey report on auto component. The survey reveals that Indian small scale enterprises manufacturing auto components are well equipped to produce components as per international standards. These SMEs have now started talking strategic positions in the international markets at both the original equipment manufacturers and the replacement supply. The last few months have seen a virtual boom in the Indian automobile industry with not only domestic component manufacturing shares but also the formidable biggies also entering India in such a manner that it is increasingly turning out to be a lucrative destination for many companies. The other growth plans are * Focus on strengthening or engineering competencies and infrastructure in new product lines. * Focus on securing liquidity position. * Cost reduction without hurting the long term interest of the business. * Import substitution projects. * Continuous improvement activities and implementing lean practices through Bosch Production System (BPS), continue with redesign of HR policies and practices to attract, retain and motivate employee.
CHAPTER - 3
MCKINSEYS’S 7S FRAMEWORK

3.1 STRATEGY
Strategy is the systematic action allocation of resources to achieve company goals. A strategy is defined as “a coherent set of action aimed at gaining a sustainable advantage over competitors by improving the market position and effective allocation of resources vice versa.

Hr Strategy
It pays special attention to competence management and filling up of executive positions in growth regions, special entry programs to attract qualified university graduates and applicants with professional experience. Train and develop the younger generation of apprentices/ engineers who are the future skilled technicians and managers.

Corporate Strategy
Bosch economic strategy corresponds to a common aim of the group for innovation, independence and integrity. The aim is to be among the world market leaders and to be a major player in all of the company business sectors. The strategy to achieve this goal is by strong marketing of new products and ongoing investment in Research and Development to innovate continuously. The emphasis on innovation is underlined by huge number of associates, working in Research and Development departments, 21250 world wide. Efficient sales and customer service also play a key role in Bosch’s corporate strategy.

Innovation
Bosch shall focus their innovative strength on technology that is “INVENTED FOR LIFE.” Bosch has invested heavily in R&D much above the industry average. This has resulted in Bosch pioneering many technological advances * Anti-locking braking systems * Electronic stability control * High pressure diesel injection * Parking assist systems

3.2 STRUCTURE
The design of organization structure is a critical task to the top management of an organization. It is the selection of the whole organization edifice. Organization structure refers to the relatively more durable organizational arrangements and relationships. It prescribes the formal relationship, how an organizational member’s procedure exists. To guide the various activities performed by the member of all part of the organization.

Bosch Bangalore Plant Organization
Board of Directors
Plant Commercial
Plant Technical
Plant Quality
Corporate Logistics and Purchase
Human Resource Location
Bosch Vocational Centre
Controlling and Finance and Accounts
Quality Material and Management
Manufacturing of Common Rail Pumps
Manufacturing of different types of Elements
Manufacturing of different types of Delivery Value
Technical Function Department
Continuous Improvement Process

3.3 SYSTEM
System refers to formal process and procedures use to manage the organization including the management control system performance management measurement and reward system, information system and distribution.

Human Resource
The HR organization uses its human resources strategy to support the divisions in the pursuit of their objectives. This involves the consistent application of the balanced scorecard. This method is used by executives.
The HR organization’s missions are based on the House of Orientation and contribute to closer alignment with the strategic objectives of the company. The “House of Orientation” provides a frame of reference for Bosch long term road map and for the way Bosch works together. It is based on Bosch values and core competencies.

Environment Management
Bosch has been expanding the environment management systems at Bosch sites since 1996. Now, the 300 sites have been certified to ISO 14001. Bosch implemented a maturity model for all manufacturing and developing sites, which will serve as the basis for further improvements in environmental protection, occupational safety and fire safety.

Occupational Safety Management
Bosch implemented a new occupational safety management system based on the globally recognized OHSAS 18001 standard. One of the systems main functions is to detest potential accident and health risks for associates in order to take appropriate preventive measures in good time. The new system is to be implemented at all manufacturing sites in no more than two years. This makes Bosch one of the forerunners in global implementation of the OHSAS 18001 standard.
Bosch Production System (Bps)
It was installed in 2002. It is a systematic production system in Bosch. In general it is called as Lean manufacturing. Just in Time (JIT) is one of the systems in Bosch production. In this the right parts produced at the right quantity should reach the assembly time at the right time.
Approaches in Bosch Production System

* The right part * In the right quantity * In the right quality * At the right cost * At the right time * At the right place

Quick Response System (Qrs)
System designed to respond quickly to any problem/issues in the production. Example – Every system has three machine indicators: Red (machine breakdown), Yellow (shortage of materials), and Green (process completed for that machine)

3.4 STYLE
Style is the leadership approach in the top management and the company’s overall operating approach. Style impacts the norms that the people follow and how they work and interact with each other and the customers. The leadership style depends upon the organization culture that is in practice.
Bosch Ltd has participative kind of leadership style where in the leader consult with the subordinate, a proposed action, decision and encourages, ensures equal participation among them. The style adopted by the management is to maintain a friendly and collaborative environment for smooth running of the organization.
Bosch Guidelines for Leadership
1. Aim for success: - Profit, growth, quality, customer and process orientation. These are the key metrics with which our corporate objectives are aligned. Regularly communicate these objectives to your associates. Make it clear what each individual can contribute to achieve it.
2. Demonstrate initiative: - Together with your associates, generate new ideas and strategies that make our company stronger. Encourage them to embrace change and take initiative on their own and support them in the implementation.
3. Demonstrate courage: - Stand by your associates. Make clear decisions and demonstrate determination in implementing them. Be a role model and exemplify the Bosch values.
4. Keep your associates informed: - Of course you give your associates factual information.
They should also know the business context and background – they are an important prerequisite for identification with the company.
5. Lead by goals: - Delegate tasks and give your associates the authority to perform them. Agree on clear goals and allow sufficient space so that creativity, self-confidence, and accountability can be developed. This enables you to lead your associates to success.
6. Give feedback to your associates: - Recognize the strengths of your associates and help them to utilize and further develop them. Take a close look: praise your people where praise is due, but also give fair and constructive criticism. Mistakes happen on both sides. Be quick and open in addressing them with the associate.
7. Trust your associates: - They are capable and willing to perform. Have the courage to manage with limited control. Your trust will create the entrepreneurial momentum that all of us want.
8. Shift your perspective: - Put yourself in your associates' position and also look at things from their point of view. How would you react to the decisions you have taken as their supervisor, and what rationale would you expect to hear.
9. Shape the future together: - Your associates can and do contribute to our company. Integrate them into the preparation of decisions and capitalize on the ideas and the potential that the cultural diversity of our company offers. Work together with your associates to transform mere interfaces into connection points, and barriers into opportunities.
10. Develop your associates: - Advise and systematically support your associates in their professional development. Support them if there are suitable opportunities for, or if they desire, further development somewhere else in the company.
3.5 STAFF
The staff at Bosch Ltd is considered as a pool of resources to be nurtured, developed, guarded and allocated. There are about 3650 employees in the organization. Permanent employees are 2550, temporary employees are 500, on job trainees are 600.
Levels at Bosch Ltd - MANAGEMENT AND SUPERINTENDENT STAFF * GM – General Manager * DGM – Deputy General Manager * Gr.1 – Senior Manager * Gr.2 – Manager * Gr.3 – Deputy Manager * Gr.4 – Assistant Manager * Gr.5 – Senior Engineer * Gr.6 – Officer * Gr.7 – Assistant Officer

Managerial And Supervisory Staff (M&Ss)
Managerial and Supervisory Staff refers to a salaried professional or an educated worker who performs semi-professional office, administrative and sales co-ordination task. They are board occupational grouping of workers engaged in non-manual labor.

Blue Coloured Associates (Bca)
A blue collared associate is a member of the working class who typically performs manual labor and earns an hourly wage. Blue collared associates work may be skilled or unskilled and may involve manufacturing, mechanical work, maintenance repair and operations maintenance of technical installations.

3.6 SKILLS
There are 6 different skill groups within the skills framework. Community leadership skills, leadership skills, management skills, occupational/technical/ professional skills, core skills, skills for life. The other skills groups are * GENERIC SKILLS are those which should be possessed by each and every employee in order to carry out the task successfully. Skills like problem solving, decision making and communication form the basic important generic skills. * SPECIFIC SKILLS are those which should be possessed by the employee to carry out his/her assigned specific task. Example: Time management, shop floor management, building teams, leadership and motivation, creativity, industrial safety and environment.

BOSCH SKILLS - The employees according to the nature of the jobs posses following skills * Functional * Quality * Information Technologies * Behavioural/ Human Relations
Managerial

3.7 SHARED VALUES – BOSCH VALUES
Bosch Values are those values which are applied and followed by all Executives faithfully. * Future and result focus: - In order to ensure dynamic development of our country and to guarantee long term corporate success, we participate in shaping the changes in markets and technologies. * Responsibility - We accept that our actions must accord with interests of society. * Initiative and determination - We act on our own initiative, with an entrepreneurial but accountable spirit, and demonstrate determination in pursuing our goals. * Openness and Trust - We inform our associates, business partners and investors in a timely and open fashion of important development within our company. * Fairness - We view mutual fairness as a condition of our corporate success when dealing with each other and with or business partners. * Reliability, credibility, and legality - We promise only what we can deliver accept agreements as binding and respect and observe the law in all our business transactions. * Cultural diversity - We are aware of our company’s regional and cultural origins and at the same time regard diversity as an asset as well as a precondition of or global success.

CHAPTER - 4
SWOT ANALYSIS
4.1 STRENGTHS * High customer satisfaction. * Established brand image around the world over the centuries. * Continuous improvement of products and quality. * Employee development given at most important. * Cost reduction strategy is good. * Good infrastructure facility. * Leadership through innovation. * High employee morale. * Effective decision making, information sharing and authority distribution. * Less employee turnover. * High quality and eco-friendly products.

4.2 WEAKNESS * Experience and skilled employees are not in right position because of ineffective allocation. * Decision making will be delayed because of long procedure. * In certain situations centralized management is followed. * Marketing of products is given less importance. * Adaptability towards change is low. * No diversification of business.

4.3 OPPORTUNITIES * Continuous innovation of products. * Bosch can foray into other line of business as it has a good brand image. * It can produce new machineries using high technology. * Potential to grow in power tools, packaging and security systems. * It can produce more economical and eco-friendly products. * It helps to compete with other companies * Quick cost effective adaptation of product to market requirement of Indian market.

4.4 THREATS * Increase in competition. * Too many substitute products available in the market. * Brand image being diluted due to entering into many products. * Growing bargaining power of companies. * Continuous cost pressure.

| | | | | | [` in Thousands (TINR)] | | | | | | | | | | | | | | 2011 | 2010 | | |