Final Ultra

8/12/2019 Final Ultra

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A PROJECT REPORT

ON

A STUDY ABOUT HUMAN RESOUCE

MANAGEMENT AND MATERIALS

MANAGEMENT AT ULTRA TECHCEMENTS (Arrakonam Plant)

BY

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF MANAGEMENT

SRM UNIVERSITY

ACKNOWLEDGEMENT


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I would like to express my deep gratitude to all those who, directly or indirectly made

this project possible.

I have got considerable help and support in making this project report a reality from

many people.

I

Thank you


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INTRODUCTION

The Aditya Birla Group is an Indianmultinationalconglomerate corporation

headquartered inMumbai, Maharashtra,India.[4]

It operates in 33 countries with

more than 133,000 employees worldwide. The group has diversified business

interests and is dominant player in all the sectors in which it operates such as

viscose staple fiber, metals, cement, viscose filament yarn, branded apparel,

carbon black, chemicals, fertilizers, insulators, financial services, telecom, BPO

and IT services.

The Aditya Birla group is a US$ 40 billion conglomerate which gets 60 %

of its revenues from outside India. The Aditya Birla Group has been adjudged

the best employer in India and among the top 20 in Asia by the Hewitt-

Economic Times and Wall Street Journal Study 2007. The origins of the group

lie in the conglomerate once held by one of India's foremost industrialists

Mr.Ghanshyam Das Birla.

Aditya Birla is organized into various subsidiaries that operate across different

sectors. Among these areviscose staple fiber,non-ferrous metals,cement,

viscose filament yarn, branded apparel, carbon black,chemicals,Retail (under

the 'More' brand supermarkets),fertilizers,chemicals,insulators,financial

services,telecom,BPO andIT services. The Group consists of five main

companies, which operate in various industry sectors through subsidiaries, joint

ventures, etc. These areHindalco,Grasim,Aditya Birla Nuvo,Idea

cellular andUltraTech Cement.
http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Aditya_Birla_Group#cite_note-3http://en.wikipedia.org/wiki/Aditya_Birla_Group#cite_note-3http://en.wikipedia.org/wiki/Aditya_Birla_Group#cite_note-3http://en.wikipedia.org/wiki/Ghanshyam_Das_Birlahttp://en.wikipedia.org/wiki/Viscosehttp://en.wikipedia.org/wiki/Non-ferroushttp://en.wikipedia.org/wiki/Cementhttp://en.wikipedia.org/wiki/Chemicalshttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Fertilizershttp://en.wikipedia.org/wiki/Chemicalshttp://en.wikipedia.org/wiki/Insulatorshttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Business_process_outsourcinghttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Hindalcohttp://en.wikipedia.org/wiki/Grasimhttp://en.wikipedia.org/wiki/Idea_cellularhttp://en.wikipedia.org/wiki/Idea_cellularhttp://en.wikipedia.org/wiki/UltraTech_Cementhttp://en.wikipedia.org/wiki/UltraTech_Cementhttp://en.wikipedia.org/wiki/Idea_cellularhttp://en.wikipedia.org/wiki/Idea_cellularhttp://en.wikipedia.org/wiki/Grasimhttp://en.wikipedia.org/wiki/Hindalcohttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Business_process_outsourcinghttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Insulatorshttp://en.wikipedia.org/wiki/Chemicalshttp://en.wikipedia.org/wiki/Fertilizershttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Chemicalshttp://en.wikipedia.org/wiki/Cementhttp://en.wikipedia.org/wiki/Non-ferroushttp://en.wikipedia.org/wiki/Viscosehttp://en.wikipedia.org/wiki/Ghanshyam_Das_Birlahttp://en.wikipedia.org/wiki/Aditya_Birla_Group#cite_note-3http://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Multinational_corporation


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TH E AD IT YA B IR LA GR OU P

VISION:

To be a premium global conglomerate with a clear focus on each business.

MISSION:

To deliver superior value to our customers, shareholders, employees and

society at large.

VALUES:

Integrity

Commitment

Passion

Seamlessness

Speed

ABG is a 24 billion dollars corporation; the Aditya Birla Group is anchored by an

extraordinary force of 100,000 employees, belonging to 25 different nationalities. The

diversity of location, language and culture blends seamlessly into a common work ethos,

which hinges on fostering excellence, recognizing and rewarding

entrepreneurship.

ABG believes in empowerment, delegation and calculated risk taking. ABGs

ongoing endeavor is to create an organizational ambience where talent can bloom. To

do so, ABG strives to make the workplace a source of creativity, innovation and one

that makes work meaningful.

ABG ensures that all the Groups polices, forward looking initiatives and

goals are fully communicated to all employees and that they understand and relate to

these. ABGs commitment to their people is reflected in the sense of belonging and

pride every employee feels towards the Group and the passion and commitment they

bring to their work.


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The Aditya Birla Group is Indiasfirst truly multinational corporation. Global in

vision, rooted in Indian values, the group is driven by a performance ethic pegged on

value creation for its multiple stakeholders. Over 50 per cent of its revenues flow from

its operations across the world. The Aditya Birla Groups products and services offer

distinctive customer solutions wor ldwide . The Group has operations in 20

countries - India, Thailand, Laos, Indonesia, Philippines, Egypt, China, Canada,

Australia, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg,

Switzerland, Malaysia and Korea.

In India, the Group has been adjudged The Best Employer in I ndia and

among the top 20 in Asiaby the Hewitt-Economic Times and Wall Street Journal

Study 2007. This has been announced recently.

G LOBAL LY T HE A DIT YA BI RL A G ROUP IS :

A metals powerhouse, among the worlds most cost-efficient aluminum and

copper producers. Hindalco, (Plant: Howrah) from its fold, is a Fortune 500

Company. It is also the largest aluminum rolling company and one of the 3 biggestproducers of primary aluminum in Asia, with the largest single location copper

smelter.

No. 1 in viscose staple fiber

The 3rd largest producer of insulators

The 4th largest producer of carbon black

The 11th largest cement producer globally and the 2nd largest in India

With some more units which are under construction now, ABG will becomethe largest cement producer in India by 2013.

Among the worlds top 15 BPO (Business Process Outsourcing) companies

and among Indiastop 3

Among the best energy efficient fertilizers plants.


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I N I NDI A:

A premier branded garments playerGrasim Suitings

The 2nd largest player in viscose filament yarn

The 2nd largest in the Chlor-alkali sector

Among the top 5 mobile telephone companies

A leading player in Life Insurance and Asset Management

Birla Sun Life.

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success

does not come in the way of the need to keep learning afresh, to keep experimenting.

BEYOND BUSI NESS:

A value based, caring corporate citizen, the Aditya Birla Group inherently

believes in the trusteeship concept of management. Part of the Groups profits is

ploughed back into meaningful welfare driven initiatives that make a qualitative

difference to the lives of marginalized people. These activities are carried out under

the aegis of the Aditya Birla Centre for Community Initiatives and Rural

Development, which is spearheaded by Mrs. Rajashree Birla.

Working in 3700 villages.

Reaching out to 7 million people annually through the Aditya Birla Centre forCommunity Initiatives and Rural Development, lead by Mrs. Rajashree Birla.

Focus areas are: health care, education sustainable livelihood, infrastructure

and promoting social causes.

Run 45 Schools and 18 Hospitals.

Transcending the conventional barriers of business to send out a message that

WeCare.

12


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P LAN T P RO FILE

U LT R AT ECH C EM ENT LI MI T ED

I NTRODUCTI ON:

UltraTech Cement Limited was formed effective July 2004, with the demerger

of Cement Division from Larsen & Toubro Limited, and was taken over by the Aditya

Birla Group and got merged into Aditya Vikram .Birla Group of Industries.

UltraTech Cement Limited is a technology driven company with leading edge

capabilities in fields related to infrastructure and basic industries. In terms of main

stream criteria viz., sales, profit, assets and market capitalization, UltraTech Cement

Limited ranks among top ten in India's private sector. The company is also ranked

high by less tangible yardsticks such as intellectual capital and brand-worth.

UltraTech Cement Limited & its subsidiaries, has manufacturing facilities at

10 locations in India and 3 Terminals including one at Srilanka. Almost all the

factories have secured ISO-9001, 14001, 18001 (OHSAS) and other certificates of thehighest ord er. UltraTech Cement Limiteds d i s t r ibut ion and services

out -reach underlines its strong customer orientation. The network extends to

virtually every district in the country. A concern for the environment is an integral

part of the company's vision. UltraTech Cement Limited is committed to growth in

consonance with the ecology and the needs of the communities it serves.

UltraTech Cement Limited is India's largest cement producer, with a

manufacturing capacity of over 17 million tons per year. UltraTech Cement Limited

manufactures and markets.

Ordinary Portland cement43 grades / 53 grades

Portland Blast Furnace Slag Cement

Portland Pozzolana Cement


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U L TRAT ECH CEMENT PL ANTS ARE L OCATED AT:

1. Awarpur cement works. Awarpur, Maharashtra

2. Hirmi cement works. Hirmi , Madhya Pradesh

3. Gujarat cement works. Kovaya, Gujarat

4. Andhra Pradesh cements works. Tadpatri, Andhra Pradesh

U L TRAT ECH CEMENT GRI NDI NG UNI TS AREL OCATED AT:

1. Jarsuguda Orissa

2. Arakkonam Tamilnadu

3. Durgapur West Bengal

U L TRAT ECH CEMENT LI MI TED S UBSI DI ARI ES:

Cement Plants:

Narmada Cement Company Limited Gujarat

Grinding Units:

Magdalla Gujarat

Ratnagiri Maharashtra

U L TRAT ECH CEMENT T ERMI NAL S ARE L OCATED

AT:

1. Navi Mumbai Mumbai

2. Mangalore Terminal Karnataka

3. UltraTech-Ceylinco Srilanka

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HUMAN RESOURCE MANAGEMENT

H UM AN R ES OU RC E SY ST E M IN U LT RA T EC H

C EM E NT LIM ITE D:

Human Resource policy is managed at corporate level and unit levels. Major

policy and strategies in certain areas are formulated at Corporate HR. APCW

formulates the local level strategies and policies in line with the Corporate HR. HR

SET at UltraTech, APCW, implements both local level and corporate level HR

polices and strategies. Unit Head, Operations Head, Functional Heads and Unit

Personnel Manager are involved in formulating APCW polices and strategies.

The Corporate HR regularly conducts HR conclaves in order to bring about

greater cohesion of OD level HR polices, so as to align these systems with individual

units requirements and also keeping in view overall business goals. Units head and

HR heads attend these meets.

MAN POWER:Based on requirement of individual departments, Head of that department is

asked to give information to man power planning department regarding the number of

persons required. The departmental heads assess their requirements based on the

available departmental job description to ensure role clarity and to avoid role

ambiguity. The Central Personnel Dept. carries out the recruitment process.

The total employees in APCW are 444 covering all departments as on

26.06.2007, out of which 225 are in Officers and Supervisor Cadre, 44 are Monthly

rated employees and 175 are Daily rated employees. There are nearly 500 contract

labors working every day on casual basis.


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P EOPL E MANAGEMENT AT U L TRAT ECH

CEMENT LI MI TED:

"Employee Delight is the key to Customer Delight" is the conviction of

UltraTech Cement Limited.

UltraTech Cement Limited's residential management development center

offers employees the opportunities for Knowledge enhancement and learning through

self-study and introspection. The faculty is drawn from India's premier management

institutes. UltraTech Cement Limited has also found a place for itself as the only

"Asian member of benchmarking forum for American Society for Training &

Development (ASTD). Self-learning facility comprising of programs on CD-ROMS

enables employees to work at their own place.


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RECRUI TMENT & S EL ECTI ON:

Recruitment sources include, advertisements given in newspapers and data

banks, depending upon the manpower requirements as stated by departmental heads,

depending upon the number of applications received, the qualification may be

generalized (in case of very few applications). Then, the persons with required

qualification are interviewed. The interviewing panel comprises of personnel officials

in the department. If the applications are in large number they will be short-listed

according to the norms of the organization.

The wage board employees are assessed on factors like:

Technical Aptitude

English and

Critical Reasoning

All employees are kept under probation for a period of 6 months after joining and

before their services are confirmed on rolls.

The O&S cadre employees will be assessed on factors like:

Management Aptitude

Leadership Behavior

The recruitment of Diploma Engineering Trainees (DET) and Graduate

Engineering Trainees (GET) are done at Central Personnel Department once in a year

through Campus Selections / advertisements in famous newspapers. The recruited

candidates are kept under probation for a period of 2 years and then are absorbed to

suitable c a d r e in the organization. During the probation period the absorbed

candidates are sent to each department to get acquainted with the departmental

activities and then they are sent to the other units of UltraTech Cement Limited for

proper orientation in the respective fields.


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P ERF ORMANCE APPRAI SAL S YSTEM:

UltraTech Cement Limited probably is the first organization in India to

introduce an integrated HRD system in the year 1975 with the introduction of

"Performance Appraisal Feedback & Counseling System".

PA includes sub-systems like:

Potential appraisal

Training & Development

Employee counseling and

Career Planning and Development.

In order to provide avenues of growth, among the Wage Board cadre, Merit

Rating procedure is in place. The performance of the employee evaluated through a

two stage process by immediate superior and Facilitator/Champion of AET/SET.

Further, in order to encourage more career opportunities to wage board employees,

company has a detailed NonSupervisor to Supervisor Scheme in place.

The new initiatives in Performance Appraisal System in APCW are Online

Performance Appraisal linked with POORNATA module. It is implemented by

Groups Corporate Office at Mumbai. It was started in last year. This form of

Performance Appraisal is mainly for Officers and Supervisors only.


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SAFETY AND HEALTH MANAGEMENT

Human Resource is responsible for carrying safety and health of the workers in the

company

UltraTech Cement has marked occupational safety as its core value and the responsibility

towards Safety, Health & Environment (SHE) is driven by the desire to protect people we

work with and the society at large.

We understand that safety starts at the top and if not, remains on paper. Therefore, there are

executive directions on safety from our Business Director. There is also the documented

demand for assurance from the Line function. We value the safety of all stakeholders,

business partners and local communities.

SAFETY PRINCIPLES

All injuriesand illnesscan be prevented.

Each line function is responsible forpreventing miunes while safety function isresponsiblefor facilitating safety systemimprovement.

All unsafe incidents and injuries must be reported, investigated and action completed.

All leaders shall demonstrate care for people by conducting safety Observations and

propagate safety awareness at every opportunities.

All Employees, Contractor's Employees and others entering plant for work shall be trained

to work safely

Safety consideration shall influence all our businessdecisions.

Regular Audit must be conducted and deviations shall be corrected promptly.

Working safely shall be condition of employment.


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MATERIALS MANAGEMENT AT ULTRATECH CEMENTS

Materials management is a separate department at ultratech cements. It deals with the

tangible components of a supply chain. Specifically this covers the acquisition of spare parts,

replacements, quality control of purchasing and ordering such parts, and the standards

involved in ordering, shipping, and warehousing the said parts.

The main goal of materials managements is to consolidate and efficiently handle core

services. It creats truck deliveries and service vehicle routes that reduce conflicts. Costs is

reduced when it comes to solid and hazardous waste removal, storage and recycling.

QUALITY ASSURANCE

Alarge componants of material management is ensuring that parts and materials used in the

supply meet minimum requirements by performing quality assurance. Parts and materials are

tested are tested both before and after the purchase orders are placed during use, to ensure

there are no short or long term issues that would disrupt the supply chain. This aspect of

material management is mostly important. Since failure can slow or even stop production

lines.

The other major component of materials management will be gradual movement towards

compliance. There are standards that are followed in supplt chain management that are

important to supply chain function. Systems reliant on vendor-managed

inventoriesmay begin to acquir e up-to -date compute rized inventories and

begin to explore robustordering systems for outlying vendors to place orders on.

Inventory management or controlrefers to the management of idle resources which have

future economic value. Alternatively, Inventory may be defined as usable but idle resources

that have economic value.

Inventory control isconcerned with minimizing the total cost of inventory. The three mainfactors in inventory control decision making process are:

The cost ofholdingthe stock (e.g., based on the interest rate).


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The cost of placing an order(e.g., for row material stocks) or the set-up cost ofproduction.

The cost of shortage, i.e., what is lost if the stock is insufficient to meet all demand.

Stock controlis defined as "the activity of checking a shops stock".[1]Many shops now use

stock control systems. The term "stock control system" can be used to include various aspects

of controlling the amount ofstockon the shelves and in the stockroom and how reordering

happens. Typical features of stock control software include:[2]

Ensuring thatproductsare on the shelf in shops in just the right quantity. Recognizing when acustomerhas bought a product. Automatically signaling when more products need to be put on the shelf from the

stockroom.

Automatically reordering stock at the appropriate time from the mainwarehouse. Automatically producing management information reports that could be used both by

local managers and athead office.

STORES

T he t e rm s to res , s to rehous e , wareho use e t c r e fe r to the ph ys ica l pl ace be

it a bui lding or a room etc. where ma terial s of all variet y are kept.

The function of stores is to receive, store and issue materials .stores are normally divided into

various sections such as -

receiving section tool stores general stores raw materials stores finished parts stores etc.

the following are the principal functions of a store;
http://en.wikipedia.org/wiki/Stock_control#cite_note-1http://en.wikipedia.org/wiki/Stock_control#cite_note-1http://en.wikipedia.org/wiki/Stock_control#cite_note-1http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stock_control#cite_note-2http://en.wikipedia.org/wiki/Stock_control#cite_note-2http://en.wikipedia.org/wiki/Stock_control#cite_note-2http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Warehousehttp://en.wikipedia.org/wiki/Warehousehttp://en.wikipedia.org/wiki/Warehousehttp://en.wikipedia.org/wiki/Head_officehttp://en.wikipedia.org/wiki/Head_officehttp://en.wikipedia.org/wiki/Head_officehttp://en.wikipedia.org/wiki/Head_officehttp://en.wikipedia.org/wiki/Warehousehttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Stock_control#cite_note-2http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stock_control#cite_note-1


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PRINCIPLE FUNCTIONS OF A STORE.

To receive raw materials, components, tools, spares, supplies,equipments and otheritems and account for them.

To provide adequate, proper and efficient storage and preservation for all the items Physical checking of all incoming materials as per the deliverychallan / invoice and

proper maintenance of daily goods receiptregister or records.

Arrange for inspection of incoming materials. Ensure that goods inward notes (gin) are raised and distributed withoutdelay Issue materials to the consuming departments against authorisedrequisitions and

account for the same. Maintain accurate and uptodate records of material received,issued, rejected,

disposed, and quantity on hand of all the items.

Ensure that all documents relating to receipts and issue are sent tostock control,accounts and other concerned departments.

Undertake stock verification as per approved procedure.

To highlight stock accumulation, discrepancies and abnormalconsumption and initiateappropriate control action, wherever necessary.

To minimise obsolescence, surplus and scrap through proper codification,standardization, preservation and handling.

To ensure good housekeeping so as to minimise the need for materialhandling. To make available a balanced flow of materials so as to economise oncapital tied up

in inventory.

To accept and store scrap and other discarded materials. Depending upon the nature of business (i.e. manufacturing, tradingservices, etc,) one

or more of these functions may gain primacy over the rest.

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