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Transcript of kamco project report
1
INTRODUCTION
Kerala Agro Machinery Corporation Ltd. (KAMCO) was established in the year
1973 as a wholly owned subsidiary of Kerala Agro Industries Corporation Ltd. (KAIC),
Trivandrum, for manufacture of agricultural machinery specifically Power Tillers and Diesel
Engines. Subsequently KAMCO became a separate Govt. of Kerala undertaking in 1986.
Paid up capital is Rs. 161 lakh and the Present Net Worth of the Company is Rs. 6014.14
lakh. Total work force at present is 567 Certified for ISO 9001 - 2000 version from
September 2002.
At present, KAMCO has four units located at Athani and Kalamassery in Ernakulam District,
at Kanjikode in Palakkad District, and at Mala, in Trichur dist. With the present work force
KAMCO can produce 15000 Power Tillers & 5000 Power Reapers per annum.
2
OBJECTIVES OF THE STUDY
Primary objective:-
The primary objective of the study is to have a brief knowledge about the functioning
of the organisation.
Secondary objective:-
To know the organisation structure of the company
To know about various departments and their activities
To evaluate the growth prospects of the company
To conduct an objective evaluation of the company
To suggest some measures for improving the performance of an organisation
To know the functional position of the company
3
PERIOD OF STUDY
Duration of the project done in Kerala Agro Machinery Corporation Ltd.
(KAMCO) is one month.
LIMITATION OF THE STUDY
During the course of the company study, the following limitations are incurred.
1. Lack of time to analyze all aspects being a work of one month.
2. Mental activities performed on the job and the knowledge, skill, ability
and other characteristics are not all directly observable.
3. As the company is very wide, the different operation cannot be correctly
analyzed.
4. It has been build upon secondary data, various records and documents of
the office were not easily assessable because of its confidential nature.
4
INDUSTRY PROFILE
Agricultural Machinery Industry in India and the farm mechanization of Indian fields
helps in effectiveness utilization of inputs to increase the productivity of land and labour.
Besides it helps in reducing the drudgery farm operations. The early agricultural
mechanization in India was greatly influenced by technological development in England.
Tractors and threshers were gradually introduced for farm mechanization. The high yielding
varieties with assured irrigation and higher rate of application of fertilizers gave higher
returns that enable farmer to adopt mechanization of inputs, especially after green revolution
in 1960’s. The present trend in agriculture mechanization is for high capacity machines
through custom hiring and for contractual field operations.
The manufacture of agricultural machinery in India is quite complex comprising of
village artisans, small scale industries, state agro industrial development corporations and
organized tractor, engine and processing equipment industries. Those industries have adopted
sophisticated production technology and some of them match international standards. Since
cost of production of farm machinery in India is more competitive due to lower labour wages,
the importers from various countries will find Indian farm equipment more attractive. Indian
products however, has made improvements in quality for gaining major export growth
AGRICULTURAL MACHINERY INDUSTRY IN INDIA
The country witnessed unprecedented growth in agriculture which has helped India to
graduate from hunger to self sufficiency in food grains by increasing the food grain
production from 51 million tonnes to 208 million tonnes, with surplus for export. The
technology back-up by agricultural scientists, in the form of “Green Revolution” combined
with industrial growth, positive policy support, liberal public funding for agricultural research
and development and dedicated work of farmers contributed to the phenomenal increase in
agricultural, animal and fish production. Application of engineering in agriculture was
equally appreciated by the farmers and today they feel proud to have improved machinery
from Bakhars to rotavators, Persian wheel to drip and micro-sprinkler systems, cone-dibblers
to pneumatic planters, sickles to combine harvesters, sieve to colour sorters, and, kolhus to
solvent extraction plants, and hand mills to roller flour mills, etc.
5
The growth in adoption of agricultural machinery in the country has been possible due
to their local manufacture. The manufacture of agricultural machinery is under taken by
village artisans, tiny units, small scale industries, organized medium and large scale sector.
Organized sectors manufacturing sophisticated machinery such as tractors, engines, milling
and drying equipment, traditional hand tools and bullock drawn implements are largely
fabricated by village craftsman and power operated machinery by small scale industries. An
analysis has been made in this paper to review the status of manufacture of agriculture
machinery, after sale services, level of adoption of mechanization inputs by the farmers so as
to plan for future mechanization.
STATUS OF FARM MECHANIZATION IN INDIA
FARM POWER IN AGRICULTURE
Unit farm power
During early sixties, a concept of farm power availability per hectare basis was used
to indicate level of farm mechanization. The potential power availability was used as
the measure and could not reflect critical constraint of farm power availability during
peak requirements or the actual level of use. Animate power contributed 60% of the
total farm power in 1971-1972 and mechanical and electrical together contributed
only 40%. In 1996-1997 the contribution from animate power reduced to 21 % and
from mechanical and electrical power it increased to 79%. The farm power input per
unit cultivated land in India is still very low compared to South Korea, Japan and
United State of America.
Energy ratio for mechanization indicator
A major defect in considering power in quantifying mechanization is that it does not
reflect the dimension of time and thus does not bring in the actual scenario in focus.
Energy, from this point of view, is a better measure as it can define the actual
quantity under use or, in other words, the potentiality of use of available power
sources in real terms.
6
TRENDS IN USE OF FARM POWER
Human power
Draught animal power
Tractive power
TRACTORS
The sale of agricultural tractors and other farm equipment has increased. To-day more
than 250,000 tractors are manufactured every year by 13 manufacturers. These tractors are
available in different horse power ranges of less than 25 to more than 55 horse power.
POWER TILLERS
The production of power tillers started in 1961 with licence to manufacture 12
models. The manufacturers started offering these to farmers in various stages covering upland
and wetland farming conditions. Their introduction coincided with that of agricultural tractors
which were more suitable for upland work and provided more comfortable work environment
to the operators. The walk-behind power tillers, on the other hand, created dusty environment
for the operator.
Secondly, the power tillers in dry land conditions were tiresome which resulted in
longer rest periods, and consequently affected the work output. These were also difficult to
manage in the hilly situations. The power tiller models being manufactured, and also those
being imported from china, etc, and have being marketed for wet land, stationary and haulage
work are being well received by the farmers.
Stationary Power
Electric Motors and Diesel Engines are the primary sources of stationary power for
irrigation, threshing and various post-harvest agro-processing operations.
7
A rotary tiller for agriculture
Two-wheel tractor. The higher horse power “riding” rotavators cross out of the home
garden category in to farming category especially in Asia, Africa and South America, capable
of preparing 1 hectare of land in 8-10 hours. These are also known as power tillers, walking
tractors or two-wheel tractors. Years ago they were considered only useful for rice growing
areas, where they are fitted with steel cage-wheels for traction, but now the same are being
used in both wetland and dry land farming all over the world. Compact, powerful and most
importantly inexpensive, these agricultural rotary tillers are providing alternatives to four-
wheel tractor and in the small farmers fields in developing countries are more economical
than four-wheel tractors.
8
COMPANY PROFILE
Kerala Agro Machinery Corporation Ltd. (KAMCO) was established in the year
1973 as a wholly owned subsidiary of Kerala Agro Industries Corporation Ltd. (KAIC),
Trivandrum, for manufacture of agricultural machinery specifically Power Tillers and Diesel
Engines. Subsequently KAMCO became a separate Govt. of Kerala undertaking in 1986.
Paid up capital is Rs. 161 lakh Present Net Worth of the Company is Rs. 6014.14 lakh. Total
work force at present is 567 Certified for ISO 9001 - 2000 version from September 2002.
At present, KAMCO has four units located at Athani and Kalamassery in Ernakulam District,
at Kanjikode in Palakkad District, and at Mala, in Trichur dist. With the present work force
KAMCO can produce 15000 Power Tillers & 5000 Power Reapers per annum.
PALAKKAD UNIT:
KAMCO,S third unit was established in 1995, is located in new industrial
development area Kanjikode, the capacity of Palakkad unit is 3600 power tillers and it is
located 15kms away from Palakkad town. The unit covers an area of eleven acres holding
five buildings. The spacious area also enjoys an overview of the gracious Western Ghats in
peaceful atmosphere.
9
OBJECTIVES OF THE COMPANY
The objective of the Company is to manufacture in India, either in collaboration with
or otherwise or import & trade agricultural machinery like Tractors, Power Tillers, Power
Reapers, Combine harvester, Transplanted, Diesel Engines, Pump sets, Implements,
accessories and spares thereto. The objectives also include establishment of engineering
workshops/repair shops to undertake repairs and servicing of agricultural machinery or other
machinery, equipment, implements and tools.
Assembly Unit was established in 1970 at Athani by M/s. Kerala Agro Industries
Corporation for the assembly of Kubota Power Tillers in technical collaboration with
M/s.Kubota Ltd., Japan, the world's leading manufacturer of Power Tillers and other
agricultural machinery. On expiry of the collaboration, KAMCO manufactures power tillers
with their own facilities.
KAMCO Power Tillers have become the most sought after Power Tillers in India
because of their quality and reliability.
10
ACTIVITIES OF THE COMPANY
KAMCO's manufacturing facilities include Special Purpose Machines, Specially built
General Purpose Machines, and Imported machines. The inspection facilities include modern
inspection & testing equipment .KAMCO has their own Metrology, Calibration & Engine
Test Lab.
The following are the main Activities of the Company.
Manufacturing and Marketing of Agriculture machines like Power Tillers, Tractors,
Power Reaper, Diesel Engines etc.
Power Tiller produced at Athani & Palakkad units. Major components for Power
Tiller are manufactured at Athani and all other components bought out from dedicated
Venders in India. There are around 250 vendors now.
Kalamassery unit produce Engine for Power Tiller
Power Reaper produced at Mala
Trading/manufacturing of other farm machines.
QUALITY SYSTEMS AND CERTIFICATIONS
1. Quality systems
Well defined quality system procedures adopted covering all activities to ensure
quality of products & customer satisfaction
Improvements are made on regular basis based on the feedback from the customers &
dealers
11
Regular interactions with all Venders including site visits to maintain and improve the
acceptance level of components
KAMCO Power Tiller certified for compliance with Minimum Performance
Standards of Govt. of India
KAMCO Power Reaper has been tested by SRFMT&TI, Ananthapur of Govt. of India
2. ISO 9001 - 2000 version
Improvement in the systems and improved Customer/Dealer satisfaction
Comply with the requirement of Customers and applicable statutory/regulatory
requirements
Improvement in the effectiveness of the established quality systems
Addresses Customer, Dealer, Vendor, Society, Employees & Share holders - for their
requirement & satisfaction
3. Quality policy
Total customer satisfaction through quality products and services with improved
technology and employee participation.
Comply with the requirements of customers and the applicable statutory / regulatory
requirements. The effectiveness of the established quality management system is
continually improved to enable achievement of the policy.
To ensure that the quality requirements of the products and services offered are
maintained at all stages.
To create a culture among all employees towards total quality concepts and
productivity through total involvement and commitment of all employees.
To create healthy working environment for attainment of quality goals with
excellence and to make quality a way of life
To detect and prevent non conformance and defects as early as possible and to
eliminate them through appropriate changes to the Quality Management System
12
To achieve and maintain Quality Leadership through continuous technology up
gradation, improvements in techniques, systems and procedures
4. Quality standards
Quality standards for each and every component and product have been
established by the company and well documented. Vendor’s premises and their
manufacturing facilities are also periodically assessed. All components are subjected
to close inspections and observations are documented to ensure traceability at any
time.
Quality Assurance Department is equipped with all modern facilities. The company
has got a standard room for calibration of all measuring instruments. Fully
documented history cards of the measuring instruments are maintained so that
periodical calibration of equipments is carried out regularly. The company’s policy is
to equip itself with all modern inspection and testing equipments as additions as well
as replacements.
The products are subjected to running tests for a pre-determined duration and only
those which pass the requirements are accepted and declared ready for dispatch.
13
PRODUCT PROFILE
KAMCO Power Tiller Model KMB 200
KAMCO Power Reaper Model KR 120
KAMCO AGRIA 602 DE(06) Power Tiller
DETAILS
Power Tiller Model KMB 200
KAMCO Power Tiller is a versatile machine primarily used for preparation of
land for farming operations. With suitably designed accessories the machine can be
used for a large number of specific operations like tilling, ploughing, weeding,
pumping, puddling, levelling, hulling, ridging.
Specifications
Model : Engine: ER 90
Tiller KMB 200
Type : Rotary, diesel-powered,
water-cooled, with radiator
HP : Continuous: 9
Max : 12
14
RPM : 2000
Fuel consumption : 1.5 litres per hour
Fuel tank capacity : 10.70 litres
No. of speeds : Forwards : 6
Reverse : 2
Tilling : 4
Wheel track : Maximum : 930 mm
Minimum : 690 mm
Tyre size : 6.00 x 12
Ground clearance : 203 mm
Travelling speed : 15 km ph (Max.)
Tilling width: 600 mm
Tilling depth: 190 mm
No. of blades: 20
Tilling capacity: 1 hectare/8hrs.
Overall dimensions: L2250 x W: 820 x
H: 1030 mm
Weight: 485 Kg
Light Unit: 12 volts, 40 Watts
Power Reaper Model KR 120
KAMCO Power Reaper is ideally suited for harvesting of paddy, wheat and
similar crops. It harvests and makes windrows @ 3-4 hours per ha. Since the fuel used
is kerosene, cost of operation is the lowest and it helps the farmer to harvest his field
at the lowest ever cost.
Specifications
15
Model: KR 120
Dimensions
Overall length: 2390 mm
Overall width: 1470 mm
Height (Up to Handle):900 mm
Weight: 116 KG
Working Capacity: 3 -4 hr/hectare (1.2-1.8 hrs/acre)
Applicable Plant Height: 60-120 cm
Crop release: Right side of machine (viewed from rear)
Engine
Type: Single Cylinder, 4 stroke, side valve, Air cooled Engine
Fuel: Petrol Start, Kerosene run
Rated HP: 3.5
Max. HP : 3.85
R.P.M :3600
Specific Fuel Consumption : 339 gm/H.P hr
Fuel Tank Capacity : Kerosene 4 Litre, Petrol 0.4 litres
Air cleaner :Oil Bath Type
Starting :Recoil starting
Travel
Forward speed : 59.0 m/min
Reverse : 50 m/min
Applicability: Dry field & Wet field
Operation & Control
Main Clutch : Dog Clutch
Harvesting Clutch: Dog Clutch
Cutting
Cutting Device : Reciprocating Knife Bar
16
Cutting Height : Adjustable 10-30 Cm grounded level
Cutting width : 120 cm
AGRIA 602 DE(06) Power Tiller
o Ideal for paddy or wheat cultivation
o Inter cultivation applications
o Various land preparations at horticultural farms
o Landscaping gardening
o Potato harvester
Specifications*330 mm to 1200 mm tilling width*Low maintenance*Highly fuel efficient*Easy controls and operations*2 speed pulley belt drive
Engine :PetrolDisplacement : 149 Cc 2 Stroke ElectronicClutch: Belt StressSpeeds: 2 Forward
Starter: Reversible
17
Air Filter : Oil BathHandle Bar : Robust And Easily AdjustableRotary Tiller: Adjustable -33 Cm To 120 CmEngine Stop : By A Security System Acting AutomaticallyTransmission: By Gear And Chain In Oil Bath Weight: 67 Kg Including Rotary Unit
ORGANISATIONAL CHART
GENERAL MANAGER
ASSISTANT ENGINEER PURCHASE
TECHNICAL ASSISTANTS
MANAGER
ASSISTANT MANAGER ASSEMBLY
ASSISTANT ENGINEER ASSEMBLY
TECHNICAL ASSISTANTS
WORKMEN
ASSISTANT MANAGER
ASSISTANT MANAGER QUALITY
ASSURANCE
ASSISTANT MANAGER
ADMINISTRATION
ASSISTANT MANAGER ACCOUNTS
TECHNICAL ASSISTANTS
TECHNICAL ASSISTANTS
ASSISTANTS ACCOUNTS ASSISTANT
SUPERINTENDENT ACCOUNTS
WORKMEN
18
UNITWISE BUSINESS OPERATIONS
The business areas operating in KAMCO are indicated in the matrix given below;
Sl. No.
Division /
Department
Corporate Set up
Location
Athani Palakkad Kalamassery Mala
1.0 Corporate Office * *
1.1 Marketing * *
1.2 Materials * *
2.0 Purchase * * * *
3.0 Production
3.1 Assembly * * * *
3.2 Pre-treatment & Ptg. * * * *
3.3 Machine Shop *
4.0 Maintenance * * * *
5.0 Quality Assurance * * * *
6.0 Engineering *
7.0 Store * * * *
8.0 Human Resource Management * * * * *
8.1 Human Resource Development * *
9.0 Finance * * * * *
10.0 Internal Audit * *
11.0 Systems * *
* Applicable in the unit location
19
SWOT ANALYSIS OF KAMCO
Strength
High quality products
Least number of competitors
Customer satisfaction
Wide area network
Good supplier dealer relationship
Qualified, experienced & dedicated human resources
Direct support from state government
Well structured industrial safety
ISO 9001-2000 certification
Weaknesses
Focus mostly on power tillers
Cannot penetrate in to international market
Power tillers are hand driven, due to which tractors are preferred on plant land
Less export performance
Opportunities
Favorable changes in customer attitude towards mechanized farming
Globalization
20
Access to technology
Reputation and profit
Threats
International competition
New entrants in national market
Unstable political setup
21
DEPARTMENT WISE STUDY
Kerala Agro Machinery Corporation Ltd. (KAMCO) has this much departments.
PURCHASE
ASSEMBLY
QUALITY ASSURANCE DEPARTMENT
MAINTAINANCE
STORES
FINANCE
HUMAN RESOURCE MANAGEMENT
22
PURCHASE DEPARTMENT
23
PURCHASE DEPARTMENT
Purchase department ensures all raw materials, semi-finished components, fully
finished components for production implements and accessories, consumables and
subcontracted component are produced from approved vendors.
Purchase department accesses vendor capability to affect supplier in accordance with
purchase order meeting acceptable quality and deliveries so that they can be listed as
approved vendors. The department ensures goods received from order.
Purchase department provides feedback to vendors for improving quality of materials.
The department should have the responsibility to ensure the vendors performance is recorded,
monitored and suitably graded.
This procedure is applicable for the procurement of the raw materials, full finished
bought out components. This procedure doesn’t apply the procurement of general stores,
consumables, building materials, office furniture and equipments. All purchased and
subcontracted items which are required as inputs for the manufacture of products. The
purchasing procedure covers all vendors who are supplying sub assemblies, fully finished
components, semi finished components, raw materials and production consumables of critical
nature and which affect the quality of product.
PURCHASE ORDERS
1. Considering the requirements of all units of KAMCO, a combined purchase plan is
prepared group wise and this plan is used as master purchase plan for entire one year.
2. Purchase proposals are prepared in standard format based on the master purchase plan
for all units of KAMCO put together.
3. The proposals are then audited by internal auditor from finance department and upon
clearance; they are put up for approval of appropriate authorities.
24
4. Purchase orders are released, separately for each unit of KAMCO after obtaining
approval from concerned authorities in respective formats and the copy of the order is
forwarded to concerned unit.
5. Delegation of financial powers to approve the purchase proposal is given in the
department quality manual.
The orders items may undergo verification at vendor’s premises depending on the
situation decided by the management. In view of this, the purchase order doesn’t have site
verification clause. Site inspected items received will have evidence of inspection by Quality
Assurance staff, supported by an inspection report and final acceptance is subject to approval
by Quality Assurance section head.
25
ASSEMBLY DEPARTMENT
26
ASSEMBLY DEPARTMENT
The process is to identify the activities to be followed in assembly so that the
assembly power reapers meet the specification. The scope of this process covers the assembly
of power tillers and reapers with implant and bought out components. Assembly of power
tiller is done in separate assembly lines engine lines, transmission line and tiller line. The
process plans of assembly are annexed in each of these different lines and several working
centres. These work centres are designated as line assemblies and for certain line assemblies
there are sub assemblies too.
There are three assembly lines, they are
1. Engine line
2. Transmission line
3. Tiller line
There is only one assembly line for reaper called Reaper line comprising of four work
centres, they are
1. Engine I
2. Reaper I
3. Reaper II
4. Reaper III
PRETREATMENT AND PAINTING
After the production process, next is to paint power tiller, power reaper and
components as per specified process.
27
PROCEDURE FOR PRETREATMENT
Components which require pre treatment before painting are drawn from store by
assembly through store – issue-come delivery note and stacked at specified areas in the pre
treatment shop.
1. Based on requirement of assembly shop, components are taken and pretreatment is
carried out.
2. Concentration of pretreatment chemicals is checked once in week or when ever
required and loses if any is compensated.
3. Pretreatment process plan is available in Department Quality Manual.
PAINTING PROCESS
Pre-treated components and cleaned Power Tiller / Power Reaper engines are applied
with one coat of primer and one coat of paint with approved colour is painting booths.
Painting process adopted is we-on-wet system and solving enamel is used.
1. Spray painting is done under controlled pressure as in department quality manual
2. Conditions of conveyor speed, over temperature, duration for drying etc. are
controlled as specified in Department Quality Manual.
3. The settings shall be strictly adhered to, to minimize wastage of paint, consumption
power etc.
4. Workman ship is controlled by application viscosity of paint monitoring the dry film
thickness.
5. Painting process plan is available in Department Quality Manual of assembly shop.
6. Effluent treatment plant operations operated to treat effluent as per norms of Kerala
State Plan Control Board where available in unit.
28
QUALITY ASSURANCE DEPARTMENT
29
QUALITY ASSURANCE DEPARTMENT
Quality assurance department at KAMCO ensures:
1. Identification and traceability of all products both bought out and processed inside
the plant are established at various stages of process.
2. Identification of in-process materials and raw materials.
3. Quality of bought out components.
4. Quality of assembling process.
5. Control of non-confirming products.
6. For corrective actions, preventive actions, and continued improvement.
7. Criteria for corrective and preventive actions by Quality Assurance Department.
8. Quality of inspection and testing.
9. Quality of maintenance and calibration of measuring instruments.
10. Quality of data analysis.
PROCEDURE FOR IDENTIFICATION OF INSPECTION AND TEST STATUS
1. RAW MATERIALS
Raw materials like castings and forgings before inspection are stored in
designated areas.
Raw materials for manufacture in the form of castings and forgings are stored
in the designated area by stores section after inspection and acceptance by
quality assurance department.
Rejected materials are tagged or marked with red color in visible area and will
be stored in a designated area.
30
2. IN PROCESS MATERIALS
First piece inspection card/ route card/ process status tag/ used for machinery of
a component will indicate the inspection and test status in machine shop.
Finished components accepted are identified with green tags; re-workable
components are marked with rectification symbols (W/F/M/US) in yellow
paint. Rejected components are marked as PD (process defect) and MD
(material defect) in red paint.
Items to be reworked are identified with yellow tag. After rework, if the items
are acceptable, yellow color tag are removed by inspector concerned. If the
items are not acceptable even after rework, yellow marks are replaced by red
mark tag to indicate rejection.
3. ASSEMBLY
Correctness of assembly works done at each work centre is certified by
concerned mechanic on the assembly tag.
Status of engine performance test is identified as follows. Tested engine by
green paint mark on drain plug rejection/ rework recorded in engine assembly
tag status of tiller / engine in assembly or test floor is identifiable at all stages
by route cards. Accepted power tiller engine is affixed with “QC passed or
inspected” sticker by inspector or chief mechanic of quality assurance on the
radiator cover.
Tillers and reapers to be reworked are identified with yellow tag with a copy of
finished tiller or reaper inspection report where in the defects are noted. After
rework it is presented for re-inspection.
For reaper assembly, status of engine is quality tested by engine manufacturer
and sticker affixed. Status of reaper in assembly or test floor is identifiable at
all stages by reaper card.
31
MAINTAINANCE DEPARTMENT
32
MAINTAINANCE DEPARTMENT
The purpose is in order to critically utilize the resources of the company and to have
uniformity in procurement, corporate level panning is envisaged. It also ensures the
identification and procurement of measuring and test equipment is done keeping in view
correct specification and acquisition, including range, precision and durability under specified
environmental conditions. The purpose is to control, calibrate and maintain inspection,
measuring and testing equipment with systematic methods of calibration periodically. The
scope of this process covers all measuring instruments including gauges used by
manufacturing department and quality assurance department. And it also covers the
inspection instruments loaded to sub contractors and the instruments used by service
engineers.
33
STORES DEPARTMENT
34
STORES DEPARTMENT
The main purpose of the stores department is to spell out in detail how various items
are protected and preserved at all stages. The procedure of stores department function is
applicable to all areas where materials are handled and stored. The head of the department
ensure the compliance to this procedure.
MATERIAL RECEIPT
All materials including raw materials, components and production consumables
received from different vendors directly through transporters along with dispatch notes
are received. Received quality is entered and the item is submitted to quality assurance
department for inspection with material tag.
ISSUE OF MATERIALS
Raw materials for outside machinery, components and consumables for production,
parts for subassembly are issued inconvenient batches against stock issue cum delivery
note.
PACKAGING
The finished engines dispatched to customers or dealers are packed in separate
wooden box for avoiding damage during transit. The finished tillers and reapers including
toolkit and manuals are dispatched to various far off destinations with a specially
designed mounting frame to keep the tillers vertically down in order to accommodate
more number of tillers in a single truck in which case oil and water are drained. Spare
parts are packaged in polythene covers and put in wooden box or cardboard box for
dispatch.
FRAMER’S KIT
The items coming in framers kits are packed in separate cardboard cartons.
35
EXPORT ITEMS
Tillers, reapers as well as spare parts for export covers with plastic covers and then
put in seaworthy wooden boxes.
DISPATCH AND DELIVERY
On instruction from the marketing department in the form of dispatch advices,
dispatch of finished products, spare parts after proper packing is made by stores through
appropriate modes of transport as per dispatch advice along with supporting documents.
Spare parts are issued to sale counters as per instruction of marketing department through
stock transfer notes.
PRESERVATION
Rust preventive is applied on all plated parts of tillers and reapers to protect them
from corrosion. Exports rust preventive is applied on all plated parts before packing.
RESPONSIBILITY
It is the responsibility of respective head of department to ensure the compliance to
this procedure.
36
FINANCE DEPARTMENT
37
FINANCE DEPARTMENT
Finance department collect and compiles data for management information
system for making timely reports. The departmental function involves ensuring
optimum level of inventory to keep financial cost low through appropriate controls.
They also prepare budgets and exercise budgetary control over financial aspects.
Finance department ensure that the employees are satisfied by providing their
eligible benefits correctly and timely. The financial transactions are recorded based on
the accounts manual accepted by the company and statutory accounting requirements
under company’s act 1956 and other statutes and guidelines issued by ICAI. The
scope of this quality system is further limited to achieve timely through system
procedure, up to date record maintenance and its retrieval and thereby to satisfy the
stakeholders in the company.
Procedure related to various activities in the division laid down in the accounts
manual of the company. There is procedure mainly deals with the following function
for better customer and stake holders satisfaction.
1. BUDGET AND BUDGETARY CONTROL
Annual budgets are prepared for both capital and revenue based on the equipments
furnished by various departments. The departmental requisitions are analyzed and
after consultation with departmental head and corporate divisional management
group, fund is finalized based on the disposition of funds. Consolidated budgets are
presented to the management and to the board for the approval.
2. MANAGEMENT OF RECEIPTS
Payments from dealers and customers received through marketing department are
acknowledged by issuing proper receipts. Customer wise and dealer wise accounting
system is adopted, documents outstanding are informed to marketing department once
in a month for further actions.
38
3. MANAGEMENT OF PAYMENTS
Subject to availability of funds, payments committees are honored on due dates.
Statutory remittance, payments to employees, various payments against services
rendered and payments to suppliers constitute the outflow of funds. All payments are
supported by approved vouchers. Authority for approval is determined by the
delegation of pores issued by the management from time to time. As far as possible
payments to suppliers are effected as per order, terms and conditions.
4. MANAGEMENT OF ASSETS
Finance department ensures that the entire assets of the company are utilized to
the efficient manner and they are secured against all possible risks. Finance
department maintains all records of all assets including plant and machinery, furniture
and fittings of the company. Annual stock verification is arranged for above assets
jointly with user departments and reconciled with records kept by finance department.
The departments make appropriate insurance and other statutory obligations to
safeguard the assets of the company. The effectiveness of inventory management is
reviewed by finance department through regular inventory checks and advice
necessary to various departments.
5. AUDITING
Internal audit department is vested with corporate functioning. The internal audit
takes care of ‘CARO’ requirements of company’s act 1956 and also acts as a ‘watch
dog’ of the entire organization. The primary responsibility of department is to ensure
that the policy decisions of the management is strictly followed by the financial
department and is verified by internal audit department. General audit functions are
carried out as per ‘accepted audit practices’ and general guidelines issued by ICAI
and also according to the audit manual approved by the company. Internal audit
undertakes auditing of payroll, purchase, work orders, bills payable, perpetual
inventory checks of stores.
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6. COSTING
Costing records are maintained as per cost accounting record rules and they are
subjected to cost audit ordered by company law board costing by the finance
department advices the management and departments about the potential areas of the
cost reduction. Costing function analyze the cost of reduction on yearly basis to
facilitate management to time buy or make decisions. Costing advices the accounts
department of cost of rejection as per warranties claims to be deducted from vendors.
7. STATUTORY TRANSACTIONS
Sales tax, income tax, tax deducted at source, certificates etc, is issued and properly
accounted and timely settlements are made. Salary and other payments recoveries and their
remittance in the case of employees are done in time.
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HUMAN RESOURCE MANAGEMENT
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HUMAN RESOURCE MANAGEMENT
PURPOSE
To ensure that right candidates are recruited as per requirements.
To ensure that employees safety is managed effectively.
To ensure that employees welfare is managed effectively.
SCOPE
The scope of human resource management is it covers all personnel.
RESPONSIBILITY
Department head of human resource management will be responsible to see that the
procedure is followed by all officers and staff in the department.
PROCEDURES
1. The recruitment, promotion and pay fixation will be carried out as per the recruitment and
promotion rules notified by the company from time to time.
2. A safety committee is constituted by the management from time to time. Equal number of
nominees of management and unions constitutes the committee. The committee meets
every three months to assess safety requirements as per Factories Act 1948 and
recommendations if any to the management for consideration.
PROTECTION OF EYES
workmen who are working in grinding machines, milling machines, lathers and doing
welding and fettling and provide with goggles for protection of eyes.
PRECAUTIONS IN CASE OF FIRE
Fire extinguishers are provided in all departments. Selected employees based on their
age and aptitudes are given training to use fire extinguishers. A list of trained
employees in fire fighting is displayed in factory premises.
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UNIFORMS
All workmen provide with uniform as safety precautions.
SHOES AND SOCKS
All workmen in factory and plant area are provided with shoes and socks as a safety
measure.
EXCESSIVE WEIGHTS LIFTING
Cranes are provided for lifting the heavy components and these cranes are tested and
certified by competent authorities as per Factories Act 1948.
PROTECTION AGAINST DUST
Workers working in places where dust is present are provided with face masks.
FIRST AID
First aid boxes provided in production department and employees handling first aid
are trained. List of personnel trained in first aid is displayed in the factory premises.
ACCIDENTS
All the accidents are recorded and reviewed quarterly by head of department of
human resource management and submits a brief report to the management, for any
corrective and preventive action. This is also discussed in management review
meeting.
3. Following welfare schemes are in operation as per special bye laws prepared for each
scheme.
Conveyance advance
Group personal accident insurance scheme through Kerala state insurance department.
KAMCO employees group gratuity cum-life assurance scheme in association with
Life Insurance Corporation of India.
KAMCO welfare centre.
RECORDS
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1. Safety equipment issue register
2. First aid box maintenance record
3. First aid training record
4. Accident register
5. Crane and compressor test record
6. Minutes of safety committee meeting
HUMAN RESOURCE DEVELOPMENT
KAMCO human resource management department ensure the improvement of human
effectiveness through a planned and effective management process. Human Resource
Management Department concentrates to identify human resource requirements and job
specification. The department evaluates and selects the suitable personal. Human resource
department provides proper human resource development activities like training. The
department periodically appraises the performance of personnel and effectiveness of training
where applicable.
A personal record sheet is prepared for every employee who will give all personal
particulars of the employee in regard to educational qualification, experience, employment
record and details of training received while in employment with KAMCO. New appointees
are put on orientation training in the functionally related department of concerned unit before
he is posted to desired department in case of transfer of employees from one department to
another, and on the job training or orientation training will be given in the new department.
Human resource development committee will meet as often as necessary to review the
training reports and also the evaluation sheets. Unit heads are invited for such meetings.
At the end of the year Human Resource Development Section will submit the
details of training arranged against the approved training calendar to the managing
director.
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PURPOSE
To improve human effectiveness through a planned and effective management
process.
SCOPE
To identify human resource requirements, job specifications.
To evaluate and select suitable personal.
To maintain the competence of personnel through human resource
development methods, including training.
To periodically appraise the performance of personnel and the
effectiveness of training where applicable.
RESPONSIBILITY
The human resource management department at Athani will have corporate
control on the training in all units. Responsibility to assess training needs rests with the
concerned departmental heads or unit heads. Training programs as per approved training
calendar is arranged by human resource management department in the Athani unit and
the unit heads. The departmental heads will also plan proper utilization of the trained
personnel.
PROCEDURES
1. A personal record sheet is prepared for every employee who will give all
personal particulars of the employee in regard to the educational qualification,
experience, employment records and details of training received while in employment
with KAMCO. Particulars in the personal record sheet up to serial number 7 will be
filled in by the human resource department. In Athani unit the personal record sheet
received from human resource management department will be maintained by human
resource development section. In other units, personal record sheets will be
maintained by the unit head of human resource department.
2. New appointees are put on orientation training in the functionally related
departments of the concerned units before he or she is posted to the desired
department. This training will be of one or two weeks duration depending upon the
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candidate and the employment proposed in KAMCO. In the corporate office, the
training will be arranged by the unit head or the person of the department assigned
with such a responsibility. An orientation training report is prepared for all new
appointees. A person will be posted to a department only after the orientation training
is completed successfully. The orientation training report will be sent to the human
resource management department after completion of training, for posting of the
candidate.
In the case of transfers of employees from one department to another, on the job
orientation training will be given in the new departments, for duration of maximum
of one week. This will be applicable all permanent employees (except work assistants
and peons) who are new to the particular department.
3. Other than orientation training referred in service training will be given only to
permanent employees confirmed in service. In order to have uniform and need based
training, corporate level training calendar is prepared at the head office at Athani.
Human resource development committee will consists of the following members.
Deputy general manager (finance)
Deputy general manager (PU)
Deputy general manager (Research and Development)
Senior manager (HRM)
Manager (MU)
Manager (KU)
4. Department heads in Athani will assess the training needs of the employees in
the department at the end of each calendar year and forward the same to human
resource development section. In the other units, training needs will be assessed by
the departmental heads and will be forwarded to human resource management
department by the unit head. Human resource development section at the head office
will consolidate the training needs.
The training requirements forwarded to human resource department as per
above will be examined by the human resource development committee. When
training requirements of units are considered by this committee, respective unit heads
are invited. Training calendar will be prepared by the human resource development
committee for approval by managing director. Human resource development section
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will communicate the annual training calendar to the departments of Athani and to the
units for implementation.
The human resource committee will meet as often as necessary to review the
training reports and also the evaluation sheets. Unit heads are invited for such
meetings.
At the end of the year, human resource development section will submit
details of the training arranged against the approved training calendar to managing
director with a copy to manager. Progress of training will be reported to the
management review meeting by the human resource management department.
5. On receiving training, each employee of Athani unit is required to submit a
training report to human resource development section through the department heads.
Employees of other units will similarly submit the training report to the unit head or
the person of the department assigned with the responsibility of training, which will
be sent to human resource development section at head office. Workshop, seminars
and short term courses are exempted from submitting the training report. The training
report will be reviewed by the human resource development committee.
If an employee is sent for training outside the unit, effectiveness of training received
by the employee is assessed by the concerned departmental head in all the units after
six months and an evaluation sheet is prepared. In Athani unit this will be sent by the
department head to human resource development section. In other units, this will be
sent to the unit head or the person of the department assigned with the responsibility
of training, who will forward the same to human resource development section of
Athani. The committee will review the evaluation sheet. If the committee feels that
the assignment should be brought to the notice of managing director, and a report will
be submitted to him for information.
6. Human resource development section maintains personal record sheet
periodically assessed by the human resource development committee, to assess the
employee’s competence.
7. Evaluation of new employees after orientation training is initiated by human
resource development.
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RECORDS:
Personal record sheet
Orientation training report
Training report
Evaluation sheet
Report to MRM
PERFORMANCE ANALYSIS
Performance analysis is a tool for analysing the performance of the company. By comparing
the performance of the company with those of the previous year performances, we can
understand company’s growth. For this study the company’s sales details and its profit to be
taken to evaluate the whole performance of the company. Performance analysis is helpful to
understand its position in the competitive market.
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SALES ANALYSIS
Table 1
Year Sales(in crores)
2003-2004 68.15
2004-2005 79.34
2005-2006 79.98
2006-2007 91.22
2007-2008 101.22
2008-2009 128.28
Chart 1
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-20090
20
40
60
80
100
120
140
Chart Title
sales
INTERPRETATION
The above table shows an increase in sales analysis. The year 2004-2005 shows a net sale of
79.34 crores, when it is compared with other years as we come down the table; the net sale is
increased in the recent year 2008-2009 as 128.28.
PROFIT ANALYSIS
Table 2
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Year Net Profit (in crores)
2003-2004 5.12
2004-2005 4.68
2005-2006 5.24
2006-2007 5.73
2007-2008 6.25
2008-2009 11.69
Chart 2
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-20090
2
4
6
8
10
12
14
PROFIT ANALYSIS
Net Profit (in crores)
INTERPRETATION
The above table shows that there is a regular increasing tendency in the net profit except in
the year 2004-2005. In 2008-2009 it reaches at 11.69.
GROWTH RATE
Growth Rate = Current Year Profit – Previous Profit / Previous profit *100
Table 3
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Year Growth Rate (in crores)
2003-2004 -25.15
2004-2005 -8.5
2005-2006 11.97
2006-2007 9.35
2007-2008 9.07
2008-2009 11.68
Chart 3
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
-30
-25
-20
-15
-10
-5
0
5
10
15
Chart Title
Growth Rate (in crores)
INTERPRETATION
The above growth rate table and chart shows there is a positive increasing tendency from the
year 2003-2004 to 2005-2006. After the financial year the 2005-2006 graph shows a
decreasing tendency. During the financial year 2008-2009 it reaches at 11.68.
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CONCLUSION
The objective of study is familiar with an organizational environment and to get an
idea about the functions of different departments. SWOT analysis was also carried out this
study helped to understand the working of different department in the company. It helps me
to given an immense knowledge about the day to day working of the company.
The following are the major conclusions drawn.
1. The company “Kerala Agro Machinery Corporation Ltd. (KAMCO)” produces
only quality products. Quality is the main reputation for the company and that gave
the company the top position in the market.
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2. Everyone in the company is fully dedicated in their work and in turn that gives full
success to the company.
REFERENCES
Various official records of Kerala Agro Machinery Corporation Ltd. (KAMCO).
Website of the Kerala Agro Machinery Corporation Ltd. (KAMCO).