Kel Os Report Fair
122
An Organisational Study Conducted at KERALA ELECTRICAL AND ALLIED ENGINEERING COMPANY LTD. MAMALA COCHIN MASTER OF BUSINESS ADMINISTRATION MAHATHMA GANDHI UNIVERSITY KOTTAYAM 2011-2012 Submitted by Smruthi R Reg No:23519
Transcript of Kel Os Report Fair
An Organisational Study Conducted at
KERALA ELECTRICAL AND ALLIED ENGINEERING COMPANY LTD.
MAMALA COCHIN
MASTER OF BUSINESS ADMINISTRATION
MAHATHMA GANDHI UNIVERSITY
KOTTAYAM
2011-2012
Submitted by
Smruthi RReg No:23519
Sree Narayana Gurukulam College of Engineering
Kadayiruppu, Kolenchery.
DECLARATION
I do here by declare that this report on ORGANIZATIONAL STUDY at Kerala
Electrical and Allied Engineering Company Ltd. Mamala, Cochin. is submitted to Mahatma
Gandhi University in partial fulfillment of the requirement for the award of the degree of
Master of Business Administration as a bonafide record of the summer internship training
undergone by me in the firm and prepared under the guidance of Dr.Hareesh N Ramanathan,
Department of Management Studies, Sree Narayana Gurukulam College of Engineering
Kadayiruppu, Kolenchery.
Certificate
This is to certify that this report is a bonafide record of the organization study conducted at
Kerala Electrical and Allied Engineering Company Ltd. undertaken by Ms. Smruthi R Reg No:
23519 for the partial fulfillment of the requirement for the award of the degree Master of
Business Adminstration program for Mahathma Gandhi University, Kottayam.
Project Guide
ACKNOWLEDGEMENT
At the outset, I thank God Almighty for his blessings throughout the study and for
making it possible for me to complete the project within a stipulated time.
I would like to express my heartfelt gratitude to Prof. C.E Krishnan, Principle, Sree
Narayana Gurukulam College of Engineering, Kadayiruppu, Kolenchery and Prof. (Dr.)
Kemthose P Paul, Head of the Department, Department of Management Studies, Sree Narayana
Gurukulam College of Engineering, Kadayiruppu, for permitting me to undergo this internship
training at Kerala Electrical and Allied Engineering Company Limited.
I am extremely thankful to Dr. Hareesh N Ramanathan, Department of Management
studies, who gave me guidance and suggestion for the preparation of this organization study
report. I extend my thanks to all faculty members of Department of Management studies, Sree
Narayana Gurukulam College of Engineering, for their help and encouragement.
I wish to express my gratitude to Mr. Benny Augustine, Personnel Manager, and Mrs.
Smitha Thomas, Junior Officer for granting me the permission to do my internship training in the
company. Also I express my thanks to, Mrs. Little Flower, who provided all information and
resources.
I also express my thanks to all the staff & workers in the firm, who helped me during the
course of my study.
I extend my token of love to all my friends for their support and encouragement for
the successful completion of this project.
Smruthi R
Contents
Chapter 1 Introduction
Objectives of study
Study plan
Chapter scheme
Chapter 2 Industry profile
World scenario
Indian Scenario
State scenario
Chapter 3 Company profile
About the company
Units
Product mix
Competitors
Organization structure
Balance sheet
Chapter 4 Departmental details
Personnel and administration department
Finance and accounts department
Marketing department
Design department
Materials and stores department
Production Department
Security Department
Safety and Environment control Department
Chapter 5 SWOT Analysis
Chapter 6 Observations and Conclusions
List of tables
List of Figures & Illustrations
Chapter 1
Introduction
Introduction
An organization study is a study which gains knowledge about the overall working of an
organization. An organization study is manly conducted to understand the various activities,
departmental structure, functions, previous performance, future plans…etc. In an
organization study data can be collected through interview, previous records, and direct
observation of organization …etc.
An organizational study involves the study of the structure and functioning of its
departments. Organizing is one of the important functions of Management. Almost all the
organizations are different but they have certain common features. All are collection of
people, linked together by formal and informal relationships. They have hierarchical orders
that are engaged in co-operative activities and they all have identical boundaries. So the
study of people in organization is important for future managers. Structure of an
organisation is very important for its functioning and growth. It provides the basic frame
work for its progress and expansion. For future managers it is imperative to study the
organisational structure and functioning of successful organisations so that they as future
managers may guide organisations towards success and profitable functioning
1.1 Objectives of the study
To gain an in-depth knowledge about the entire organization and to get a clear view about
the day to day functioning of the organization thereby understanding the real working
environment
To study about the functioning of each department of the firm.
To know and understand how the management of this company makes use of the
management tools, concepts, theories and its principles in practical environment of an
organization
To study the fractional integrity and interdependence of different departments in the firm.
To conduct a thorough study about the various strengths, weaknesses, opportunities and
threats of the organization
To understand the background, present structure and future prospects of the organization.
1.2 Study Plan
Organization study was conducted at Kerala Electrical And Allied Engineering Company
Limited and it started on 2nd May 2011. Overall idea about the organization was given by the
Junior Officer (P & A).
During the first week financial aspects of the company were collected from the finance
and accounts department of the company. Asst. Finance Manager of the company helped for that.
She also gave the previous year financial report of the company and also explained the financial
policies of the company. In design department Asst. Manager, Transformer Division Design
explained presentation of drawing and specification.
Second weak, Personal and Administration and Planning department were visited. In
personal and administration department HR manager explained about HR strategies, selection
procedure, and employee allowance….etc. in planning department Asst manager explained
preparation of work amendment and work order.
Next week materials and production section of the company was visited. In this
department Deputy General Manager described about what really happened there. In production
department, Asst. Manager clarified about manufacturing activities.
Last week of my organization study details regarding quality and assurance department
were collected. Marketing manager gave a clear picture about various marketing activities of the
company. In quality and assurance department, Asst. Manager explained about how they ensure
quality of their performance.
The organizational study was a nice experience and it gains my knowledge about, how
company can smoothly carried out their activities.
1.3 Chapter scheme
Chapter 1
The first chapter is the introductory chapter and includes the objective of the study, study plan
and chapter scheme.
Chapter 2
The second chapter is about the industrial profile. This chapter include the world, Indian, and
state scenario of the industry.
Chapter 3
The third chapter is about the company profile. This include business history, history of the
company stating the objectives and developmental stages since the inception, date of
Inception ,ownership status, number of units with detail of each unit, competitors ,organization
structure, financial performance of the company for the last three years, growth profit and future
plan.
Chapter 4
The fourth chapter describes departmental details and this chapter includes each Department’s
Structure, Functions, Procedures and Policies and Programmes.
Chapter 5
The fifth chapter includes the strength, Weakness, opportunities and Threat of the company.
Chapter 6
The sixth chapter carries the observations of the organizational study conducted at Kerala
Electricals and Allied Engineering Company Ltd. It also include conclusion, References and
Appendix.
Chapter 2
Industry Profile
Power is a critical infrastructure on which the socio economic development of the
country depends. Recognizing that electricity is one of the key drivers for rapid economic growth
and poverty alleviation, after independence Indian government has decided to bring all new
power generation, transmission and distribution in rural and urban centre under the purview of
state and central government agencies. Accordingly State Electricity Boards were formed in all
states. Today SEB’s are the major constituents of the power sector.
The commercial and industrial distribution transformers market offers a still developing
case study in the informal collaborative model for a national market transformation initiative.
Despite this large economy wide savings opportunity relatively little attention has been paid to
commercial and industrial transformer efficiency. For new facilities, expansion or renovation of
existing facilities or the rare transformer failure, choices exist which can provide substantial cost-
effective energy savings. By choosing energy efficient transformers, individual commercial and
industrial facilities can cut total electricity bills by 0.3% to 1.5% or more with paybacks of three
to five years at national average electricity rates.
Electrical Manufactures Association, the U.S Environmental Protection Agency federal
purchasers represented by the Federal Energy Management Program, utility and regionally-based
energy efficiency program, and energy efficiency organization. Each of these market actors has
played or will play a critical role in addressing specific market barriers.
2.1 Transformers
A transformer is a voltage changer. Transformer industry is divided in to
distribution, power and other type of transformers. The health of transformer industry depends
largely on the power generation and transmission sector. The major user of this industry is the
State Electricity Boards and Industries. The transformer industry in India has developed for over
50 years and has a well matured technology base. It has the technology to manufacture wide
range of power transformers, distribution transformers and special transformers for welding,
traction and furnaces etc. Energy efficient transformers with low losses and low noise level are
also being developed to meet international requirement.
Also Indian players in the engineering segment, foraying in to turnkey projects
overseas, are further adding to the demand for transformers. The demand is expected to
experience double digit growth over the next few years. On other hand the production numbers
indicate a death in supply. Though on a lower base the supply has grown at a rapid rate over a
longer period of time, it seems difficult to match the rate of growth in demand for the year ended
April 2006, production of distribution transformers was 65131000 KVA and 256585 other
transformers were produced. In light of strong demand and stringent supply, the transformer
manufactures are expected to enjoy strong order book along with firm margins.
2.2 World scenario
The growing presence of global participants in the Indian power and distribution transformers
market is a concern for local manufactures. Understanding the importance of private
participation for the growth of the market, the Indian Govt. is actively taking steps to encourage
increased private investment. This report analyses the worldwide markets for Transformers
(Electricity) in Millions of US$ and units. The specific product segments analyzed are Power
Transformers, Distribution Transformers.
One of the most important developments in the global economy in the past half century is the
enormous growth in world trade. The growth of the trade share of output is probably the most
commonly used piece of evidence to illustrate the increasingly globalize world economy. This
growth has been dramatic, averaging 3 % per year for past 50 years. In the time period first focus
on 1962-99 the merchandise export share of output tripled. The common wisdom about the cause
of this growth focuses on the worldwide reductions in trade barriers brought about by several
GATT agreements.
This report analyses the worldwide markets for Transformers (Electricity) in Millions of US$.
The specific product segments analyzed are Power Transformers, Distribution Transformers,
500-10000 KVA, 100001-30000 KVA, 30001-100000 KVA, and 100001 KVA. The report
profiles 195 companies including many key and niche players worldwide such as Areva, Areva
T&D, ASEA Brown BAOVERI, ABB Powertech Transformers, Bharat Heavy Eletricals
Limited, Crompton Greaves Ltd, EFACEC, Ekarat Engineering Public Company Ltd, Hammond
Power Solutions, Holec Resitra, IMP Power Ltd, Kirlosker Electrical Ltd, Kuhlman Electric Ltd.,
Nissin Electric Company, Schneider Electric SA, Siemens, Shihlin Electric & Engg Corporation,
Smit Transformatoren NV, Trnasfix, VA Tech Elin Transformatoren, and Waukesha Electric
Systems.
Rest of World Historic Market Review for Transformers (Electricity) by product group/segment
500-10000 KVA Transformers, 100001-30000 KVA, 30001-100000 KVA, and 100001 KVA
Transformers Markets Independently analyzed with annual sales figures in units for years 2001.
2.3 Indian scenario
Heavy electrical company encompasses important industry sectors including power
generation, transmission and distribution equipments. This also covers turbo generators, boilers,
turbines, transformers, switch gears and relays. The performance of this industry is closely linked
to the programmes of the country. The government of the country has an ambitious mission of
“Power for all 2022” as per working group on the power for 11th plan; a capacity addition of
72000MW is required. To reach wheel power, an expansion of the regional transmission network
and inter regional capacity to transfer power would be essential. This will stimulate substantially
demand for heavy electrical equipments. There is a strong manufacturing base for the
manufacture of heavy electrical equipments in the country. The technology available in India is
almost at par with in the international market barring few areas of the high voltage lines.
However, items like CRGO steel and amorphous cores for low loss transformers are being
important.
In India transmission and distribution system is a three tier structure comprising distribution
networks, state grids and regional grids. SEB’s are vertically integrated as intra state distribution
networks and the grids are owned and operated by SEB’s. the transmission and sub transmission
systems supply power to end consumers. Distribution of power to end consumer is lonely
controlled SEB’s and licensees in the private sector. Most of the interstate transmission links are
owned and operated by power Grid Corporation of India Ltd.
The present buoyancy in Indian economy would create demand for the electrical product through
industrial growth and general economic development. The power sector reforms will create large
business for power sector equipment manufacturers and service providers. In the current
favorable scenario, the electrical industry certainly looks forward to growth. India has a field-
proven technology and capacity to manufacture a wide range of power transformers, distribution
transformers and other types of special transformers. For welding, traction, furnace etc. Today,
about 95% of the transformers installed in the Indian Power Network are of indigenous origin.
Energy efficient transformers with low losses and low noise levels can be available to meet
international requirements. The Indian transmission sector has evolved over time mainly on
account of improvements in technology and systems. The power sector reforms are on a
threshold of major changes that would shape the future of industry. The increased thrust on
providing power for all through building additional generation capacities, improving
transmission and distribution network would lead to a huge demand for power equipment
manufacturers.
The transformer market in India is largely unorganized with very few organized players. The key
organized players in this segment are:-
ABB
BHEL
Bharat Bijlee
EMCO
Vijay Electricals
Crompton Greaves
Areva T&D India
Indo Tech Transformers limited
2.4 State scenario
Major players in Kerala are:
Intrans Electro Components Pvt. Ltd. is an Electrical equipment manufacturing Private
Limited Company, providing the entire range of High Tension 11KV equipments for the
Industries and other commercial establishments. The products manufactured are Cast Resin
Transformers, Unitised Sub Stations, Load Break switch Metering Panels, Epoxy Current
Transformers, Potential Transformers and epoxy moulded components. The company has a rich
heritage of 25 years and is a leading brand in the Kerala Market. The products are manufactured
under stringent quality control standards. To diversify the product range, the promoters are
putting up the second manufacturing unit at Aluva, Cochin, Kerala, India. To cater to the ever
growing demand in other markets an additional Greenfield plant is being established in Tumkur,
Karnataka. All the leading construction groups and factories are the esteemed clients of Intrans.
The factory is well equipped with the latest machineries, Vacuum Oven and material handling
facilities to manufacture the above products.The testing Laboratory is fully equipped with all
mandatory testing equipments along with Partial discharge Testing equipment and separate
source withstand Test Equipment (Power Frequency Test) up to 150KV.
Intrans Transformers have been tested at CPRI Bangalore for an impulse voltage test of 95KV
(Peak) and all transformers are manufactured to that standard. Intrans employs highly skilled
workmen to manufacture products having high quality of workmanship.
Resi Tech has been in the activity of manufacturing Epoxy resin cast switch gear components,
Hi-tension current transformer and potential transformers for more than 20 years and has been
enjoying a good reputation among the electrical consultancy, contractors, and industrial
establishments. The products manufactured are of high standards and quality and well accepted
in the market. The factory is well equipped with the latest machineries vacuum oven material
handling facilities to manufacture the above products.
Add more contents
Chapter 3
Company Profile
Kerala Electrical & Allied Engineering Company Ltd. (KEL) is a multifaceted company fully
owned by the State government and was established in 1964. Through its five production
facilities, located in various districts of the State, this ISO 9001: 2000 complaint company
provides basic engineering services / products besides executing projects of national
significance for high profile clients like the various defence establishments.
KEL is one among the largest, most vibrant and productive Public Sector Undertaking, and is
fully owned by the Government of Kerala. A multi-product engineering company,
consistently catering to an envious client base, ranging from the army and air force of India to
world-renowned space research organizations, highly competent engineering companies to
mammoth institutions likes the Indian Railways. The company with four state-of-the-art
manufacturing units spread across Kerala has a pan India presence with marketing offices in
major metros and select cities.
3.1 Vision
To be a globally recognised enterprise committed to enhancing stakeholder value by providing
world class engineering and power system solutions
3.2 Mission
To achieve our vision by:
Applying state-of-the-art technology, processes and innovative solutions
Building long term relationship with stakeholders in an environment of fair business ethics
and values
Creating value through sustainable and profitable growth
Leveraging productivity through highly motivated and empowered team
3.3 Units
Company has five manufacturing units located in various parts of the state.
3.3.1 KEL Train Lighting Alternator Division, Kundara, kollam
Inception: 1964
Technical knowhow: EVR of France
Product range
a. Stanodyne Brushless alternators used for lightning and air conditioning of
railways coaches.
b. 12 KW alternators specially designed for powering Janasadabdhi express trains of
Indian railways.
c. Inductor type brushless alternators for automobiles and for charging systems in
diesel engines.
d. High frequency alternator 400 Hz
e. Ground power units for starting and powering Boeing aircrafts.
f. DC, AC, power frequency and high power pack for missile firing auxiliary power
support.
Top customers
a. Indian Railways,
b. BHEL,
c. Crompton Greaves Ltd.,
d. BEML, R & DE (Engineers), Pune
e. BDL Hyderabad.
3.3.2 KEL LT Switch Gear Division, Olavakkod
Inception: 1977
Technical knowhow: UNELEC of France
Product range
a. Fuse Switches
b. Changeover Switches
c. Porcelain Fuse Units and Cutouts
d. Distribution fuse boards and industrial type switch boards
e. Distribution Boards (SPN & TPN 2 to 16 ways)
Top customers
a. KSEB (Re-wirable Fuse Units),
b. Other Units of KEL (Al / Bronze Castings)
3.3.3 Transformer Division, Mamala
Inception: 1969
Technical knowhow: BHEL
Product range
a. Distribution Transformers of ratings upto 3,000 kVA, 33 kV class – of types such
as oil-filled and resin impregnated dry type; on load tap changing with Automatic
Voltage Regulation.
Top Customers
a. State Electricity Boards
b. Government Departments
c. Public and Private Sector Companies
3.3.4 Structural Engineering Division, Mamala
Inception: 1969
Product range
a. Hydraulic gates,
b. Hoists and controlling equipment.
c. Fabrication of structural steel.
d. Railways bogies.
Major Projects Undertaken
a. Gerusoppa Dam, Karnataka for Karnataka Power Corp. Ltd.
Hydro-mechanical works – Penstock, stoplog gate, gantry crane, hoist
b. Upper Tunga, Karnataka for Karnataka Neeravari Nigam Ltd.
Radial gates, rope drum hoists, stoplog gate, gantry crane
c. Mansi Wakal, Udaipur, Rajasthan for ITD Cementation India Ltd.
Radial gates, vertical gates, stoplog gate, hoists
d. Narmada Project for J P Associates
Slide gates
e. Bogie frames for BFAT Wagons for BEML
f. Bogie frames for EMU Coaches for ICF
The KEL Mamala has two production units;
1. Transformer division
2. Structural division
Transformer division has gone on stream in 1968.The transformer division of KEL has been
facilitating the manufacturing of medium power transformers.KEL is the largest producer of
distribution transformers in India. The distribution and medium power transformers produced by
KEL will have capacity up to 3000 KVA to 33KV class with an annual production capacity of
600000KVA.KEL transformers have acquired approvals from National Test House, various state
electricity boards and power corporation in India have approved the transformers. Major product
ranges of this division are:-
Oil filled circuit distribution transformer
Oil filled on load tap changer(OLTC).Transformers with automatic voltage
regulator(AVR) and remote tap changing cubicle(RTCC).
Oil filled autotransformer.
Oil filled amorphous core transformer
Dry type transformer(resin impregnated)
Unitized substation with oil filled and dry type transformer
Structural division facilitates the fabrication, commissioning and designing of Hydraulic
control gates and hoists for power and irrigation projects, cranes, pressure vessels and other
industrial structures. The main clients are Indian railways, Dam projects etc. The concerned
clients have inspected these projects.
The division has a team of professional engineers, technicians and other employees with
adequate experience for performing, designing, fabrication and erection.
3.4 Product range of KEL Company
3.4.1 Transformer Division @ Mamala Unit
a. Distribution Transformers of ratings upto 3,000 kVA, 33 kV class - of types such
as oil-filled and resin impregnated dry type; on load tap changing with Automatic
Voltage Regulation.
b. Future-ready Product Range: Resin Cast Dry Type, Special Application
Transformers such as EMU, LOCO, Dynamic Reactive Power Compensation and
Furnace Transformers.
3.4.2 Structural Engineering Division @ Mamala Unit.
a. Design, fabrication and commissioning of hydraulic gates and hoists and their
controlling equipment.
b. Design and construction of steel bridges, factory buildings, storage tanks, fabrication
of pressure vessels and other industrial steel structures.
c. Fabrication and manufacture of bogie frames, bogie bolster, head stocks for railway
coaches and wagons.
3.4.3 Train Lighting Alternator Division @ Kundara Unit.
a. Inductor type brushless alternator for train lighting and air-conditioning -1 kW to
40 kW.
b. 12 kW alternators specially designed for powering Janashatabdi Express Trains of
Indian Railways.
c. Inductor Type brushless alternator for automobiles and for charging systems in
diesel engines - 12 V, 24 V upto 50 A.
d. High frequency alternator - 400 Hz; upto 100 kVA.
e. Ground power units for starting Avro and Dornier aircrafts and for powering
Boeing aircrafts.
f. Ground Support units with dual voltage system for starting fighter aircrafts.
DC, AC power frequency and high frequency power pack for missile firing
auxiliary power support.
3.4.4 LT Switchgear Division @ Olavakkod Unit.
a. Fuse Switches
b. Changeover Switches
c. Porcelain Fuse Units and Cutouts
d. Distribution fuse boards and industrial type switch boards
e. Distribution Boards (SPN & TPN 2 to 16 ways)
3.5 Capital Structure
KEL has 40000000 equity share of face value of Rs. 10 each. The issue subscribed and
paid up shares is 3405937. It is fully paid up shares. This include 6032350 equity share
held by Kerala State Industrial Enterprises Ltd. And 317443 equity share allotted as fully
paid up for consideration other than cash.
3.6 Market Potential
In all India level, KEL will be contributing to 2% need when its production is 100%. In the state level, KEL’s marketing potential is around 35-40% of the market requirement. Further in India, the power requirements are always on the rise. The government has also from time to time sets some targets to achieve regarding the power generation, transmission and distribution. This in turn boosts the market potential for KEL’s products.
3.7 Competitors
In the national level, the main competitors of KEL Transformers are Kirloskar Bangalore, Indotech Chennai and Cromton Greaves Chennai. In the state level, Intrans Ernakulam and TELK Angamaly are the main competitors.
3.8 Overseas Partnership
As a company in tune with modern technology the company have had associated with reputed overseas manufacturers who are experts in their respective fields.
PRODUCT TECHNICAL KNOW HOW
General purpose brushless air conditioning generators
MOTEURS LEROY SOMER,FRANCE
Induction brushless alternators for lighting and air conditioning of rail coaches
EVR,FRANCE
HRC Fuses UNELEC,FRANCE
Table 3.1
3.8 Projects
The main projects done by KEL are :-
Project Name Client Nature of work
Falcon Missile Project R&DE (Engrs.), Pune Vehicle mounted 62.5 kVA, 415 V, 50 Hz, 3-phase DG set
Thrisul Missile Project DRDO 50 kVA Dual Output DG Set
Prithvi Missile Project R&DE (Engrs.), Pune 2 kW, 3000 rpm DG set
Pinaka Project L&T 8 / 12 kW, 30 V, 400 A Alternator
Akash Missile System BEL 75 kVA, 220 V, 400 Hz Battery Power Source Vehicle
Military Power Car Army Battery Chargers of Battle Tanks
General Air Force 20 kVA, 415 V, 50 Hz, 3-phase alternators
General Army 30 kVA, 220 V, 50 Hz, 3-phase alternators
General Air Force 125 kVA, 415 V, 50 Hz, 3-phase alternators
Radar Application Air Force 100 kVA, 220 V, 400 Hz, 3-phase alternators
Radar Application Air Force 250 kVA, 400 V, 50 Hz, 3-phase alternators
Power Cars of Rajdhani & Shatabdi Express Trains
Indian Railways 500 kVA, 750 V and 250 kVA, 750 V alternators
Ground Power Unit Defence 70 kVA Trolley mounted Ground Power Unit
Ground Power Unit Airlines 75 kVA, 400 Hz Ground Power Unit for Boeing 737
Antartica Expedition Indian Navy 10 kW, 400 Hz, alternator
Traction Alternator BHEL / Railways 200 kW Traction Alternator
Medium Power Nuclear Power Corporaton, 3000 kVA, 11/6.3 KV
Transformer Kudankulam, Tamil Nadu Transformer
Medium Power Transformer
Tranvancore Titanium Products Ltd., Kerala
2000 kVA, 11/ 0.433 V OLTC Transformer
Unitised Sub-station Guruvayoor Dewasom 160 kVA, Drytype packaged Sub-station
Gerusappa Dam, Karnataka
KPCL Hydro-mechanical works – Penstock, stoplog gate, gantry crane, hoist
Upper Tunga, Karanataka
KNNL Radial gates, rope drum hoists, stoplog gate, gantry crane
Mansi Wakal, Udaipur, Rajasthan
ITD Cementation Radial gates, vertical gates, stoplog gate, hoists
Narmada Project, Gujarat J P Associates Slide gates
Table 3.2
ORGANISATION CHART-
KEL MAMALA UNIT
I.
KMGM
KMTMN/KMPLT
KMTP
Fig 3.1
II.
KMMS
KMMSD
KMMSD
KMMSD
KMMSD
Fig 3.2
III.
KMGM
KMTDS
KMTMD
KMTMD
KMTMD
KMTMD
KMTM
KMTDSD KMTDSD
KMSM/ KMPLS
KMSMD
KMSM KMDS
KMPLSDKMPLSDKMPLSDKMPLSD
KMDSD
KMDSD
KMFA KMPA
KMGM
Fig 3.3
Departments/ functions
KMGM - Head Mamala
KMQA - Quality/ Head quality
KMPA - Personnel and Administration/ Head P&A
KMPLT - Planning, Transformer Division
KMPLS - Planning, Structural Division
KMTM - Transformer Marketing/Head Transformer Marketing
KMSM - Structural Marketing/ Head Structural Marketing
KMMS - Materials/ Head materials/sub-contract, production-Transformer
KMFA - Finance and Accounts/Head F&A
KMTP - Transformer production/ Head Transformer production
KMSP - Production and installation/ Planning & sub-contract/ Head
Structural production
KMTDS - Transformer Design/ Head Transformer Design
KMSDS - Structural Design/ Head Structural Design
KMTMN - Maintenance/ Head Maintenance
For the purpose of documentation, the following codes and short terms are used to denote authorities, that prepare approve, and issue documents.
CODE DESIGNATION SHORT NAME
GM Head, Mamala KMGM
MR KMMR KMMR
QA Head, Quality KMQA
TM Head Marketing-Transformer KMTM
SM Head Marketing-Structural KMSM
TP Head Transformer- Production KMTP
SP Head Structural Production/Planning KMSP
TDS Head Design &Development-T-Div KMTDS
SDS Head Design &Development-S-Div KMSDS
TMN Head Maintenance KMTMN
PA Head Personnel &Administration KMPA
FA Head Finance & Accounts (F&A) KMFA
MS Head Materials &Stores/Sub-contract/ KMMS
Production
PLT Head Planning T-Div KMPL
Kerala Allied Electrical and Engineering Company Ltd.Balance Sheet (Rupees)
PARTICULARS AUDITED
2006-2007 2007-08 2008-09 2009-10
I.SOURCES OF FUNDS
1. SHAREHOLDERS FUNDS
a. CAPITAL A
b. RESERVES AND SURPLUS B
2. LOAN FUNDS
c. SECURED LOANS C
d. UNSECUERD LOANS D
TOTAL
II. APPLICATION OF FUNDS
1. FIXED ASSETSa. GROSS BLOCK E b. DEPRECIATION c. NET BLOCKd. PROJECTS WORK IN
PROGRESS F
2. INVESTMENTS G
713780770
36567828
750348598
209428534
265873914
475302448
1225651046
254068195
224219307
29848888
56033095
85881981
871480770
36567828
908048598
192959960
101580795
294540755
1202589353
256277942
232052307
24225635
58855338
83080973
871480770
36567828
908048598
186649000
111582058
298231058
1206279656
258277942
236184307
22093635
61355338
83448973
871480770
36567828
908048598
168603000
140083321
308686321
1216734919
264844942
239133307
25711635
61355339
87066974
3. CURRENT ASSETS,LOANS & ADVANCES H
LESS:CURRENT LIABILITIES
AND PROVISIONS I
NET CURRENT ASSETS
4. a. DEFERRED REVENUE EXPENDITURE Jb. PROFIT AND LOSS A/C
TOTAL
NET WORTH P
50000
516890816
339226921
177663895
17722200
944332970
1225651846
-193984372
50000
586865504
375547194
211318310
881100
899328970
1202589353
8719628
50000
682313331
433687618
248625713
0
874154970
1206279656
33893628
50000
735589711
466158338
269431373
0
860186572
1216734919
47862026
Kerala Allied Electrical and Engineering Company Ltd..
Profit and Loss Account (Rupees)
PARTICULARS
SCH
AUDITED PROVISIONAL
2006-07 2007-08 2008-09 2009-10
INCOME:
SALES, WORKS CONTRACT, JOB WORKS AND MISCELLANEOUS INCOME K
INCOME/ (DECREASE) IN STOCKS L
TOTAL
EXPENDITURE:
MATERIALS CONSUMED M
INTEREST & BANK CHARGES N
OTHER EXPENSES O
DEPRECIATION E
DEFERRED REVENUE EXPENSES WRITTEN OFF
TOTAL
(LOSS)/PROFIT FOR THE YEAR
834691768
-83857884
751033884
378440436
44599247
343443559
12195851
8911102
787590195
1010336000
26461554
10367975554
584693000
41938000
348418454
7833000
8911100
991793554
106109000
6176000
1067195000
607370000
47729000
3739789000
4132000
8911100
1042021000
1056451000
-18981000
1037470000
614007000
49094000
357451602
2949000
0
1023501602
(LOSS) BROUGHT FORWARD FROM LAST YEAR
(LOSS) TRANSFERRED TO BALANCE SHEET
-36556311
-907776659
-944332970
45004000
-944332970
-899328970
25174000
-899328970
-874154970
13968398
-874154970
-860186572
Chapter 4
Departmental Details
4.1 Personnel and Administration Department
The personnel and administration department is a supporting section which plans and provides
manpower to all other subsystems of the organization and to itself by formulating proper
recruitment and training programmes. It also monitors the performance of the employees for
better direction, promotion and results. The personnel department is responsible for recruitment,
selection, placement, training, performance appraisal, welfare compensation and promotion.
4.1.1. Policies
i. To establish and maintain a system for imparting knowledge, skill and motivation
ii. Enabling employees to carry out various tasks to achieve organizational objectives.
iii. Impart suitable training and development to the employers as well as employees
iv. Impart training to optimize their skill and efficiency and to improve quality, productivity
and human relations.
This procedure covers and action training on the job training, training required for qualifying for
process /safe operations, developmental training for job rotation and enlargement/ awareness of
new concepts, quality management and quality system techniques, behavioral training and
retraining in all these area due to changes in process technology/systems/strategies.
4.1.2. Department Structure
4.1.3. Functions And Responsibilities
4.1.3.1. Functions of department
i. Arranging preventive maintenance of office activities.
Manager P & A
Junior Officer Junior Officer
ii. Updating data on safely and environment requirement
iii. Maintenance of training identification records
iv. Procurement of right kind and number of persons
v. Co-ordination with other department/function for sponsoring employees training
vi. In-house training management.
vii. Employee welfare measures as per approved scheme/agreements
viii. Industrial relations
ix. Execution of all policies related to personnel function.
x. Manpower planning
xi. Maintenance of personal files/records
xii. Issue circulation on training and other personnel matters.
xiii. Correspondence with external bodies on statutory compliance
xiv. Insurance matters on land, building, materials and products.
xv. General insurance including employees medical and accidents insurance
xvi. Promotion of employees as per policy and as per agreements.
xvii. Sanctioning of annual increments to employees, keeping records and registers
4.1.3.2. Functions of Manager
i. Personnel planning for the future
ii. Proper utilization of resources
iii. Preparation of training schedules
iv. Organizing by setting up the structure of relationship among jobs, personnel and physical
factors to contribute towards organization goals.
v. Mobilization of talented personnel
vi. Determination of adequate and equitable compensation to employees.
vii. Ensure smooth running of business without any grievance
viii. Provide good working conditions and welfare services to employees.
ix. Ensure growth and development
4.1.3.3 Functions of junior officer
i. Legal matters, keeping records of cases at different court etc.
ii. Mediclaim – recording, claim settlement with united India Insurance Company
correspondence with insurance department.
4.1.3.4. Clerk
i. Time keeping and recording of officers, staff, apprentices and temporary employees
ii. Arrangements of taxi, preparation of bills etc.
iii. Arrangement of remittance of tax, insurance of co-vehicles.
iv. Issuing gate passes to contract workers
v. Remittance of contribution, maintenance of all records
vi. Reports of accidents, recording, keeping register.
vii. Intimation of recovery/ attachment of salary by courts/Kerala State Financial Enterprise/
bank etc.
viii. Issue of certificates
ix. Leave surrendering, keeping records
x. Preparation of alternate bonus
xi. Canteen recovery and recording
4.1.4. Programmes and procedure
4.1.4.1. Recruitment
Recruitment is the process of searching for prospective employees and stimulating them to apply
for jobs in the organization. For this, the company has adopted different methods. KEL is having
a Centralized Recruitment System. The recruitment and selection proceedings are conducted at
the head office of the company. The main advantage is
i. It ensures effective and suitable placement of candidates
ii. The cost of recruitment per candidate
iii. Unit managers will not be disturbed by this type of recruitment.
The company has different methods for recruitment. The main sources are:
1. Advertisement
The major recruitment is done through the advertisement. The advertisements are given
in local or national press, trade or professional journals. The recruitment of the job is
given in the advertisement. Management gets a wider range of candidates for selection
through the advertisement.
2. Employment exchange
The company has also recruited employees through this method. The vacancies may be
noticed with the exchange, whenever there is a need. The exchange supplies a list of
candidate fulfilling required qualification.
3. Public Service Commission
Some of the staff’s such as junior assistant, foreman, stenographer, driver etc. are filled
through the test conducted by the Public Service Commission among the eligible
candidates. Commission notifies specific vacancies by the way of newspapers,
employment news.
4. Trade unions
The KEL Mamala has also recruited employees and staff through the mutual agreement
between the trade union and management. There are three recognized unions in KEL,
they are KEL Employee Congress, KEL Employees Union and KEL Employee
Association.
4.1.4.2 Selection and training
4.1.4.2.1 Selection
“Selection is the process of differentiating between applicants in order to identify (and hire)
those with a greater likelihood of success in a job”. The head office of the company selects the
right person from the advertisement. The criterion for evaluation is performance, experience and
qualification of the candidates. After that the interview is conducted on the basis of the result of
interview, the selection is made.
4.1.4.2.2 Training
“Training is the act of increasing the knowledge and skill of an employee for doing a particular
job”. In KEL Mamala two types of training are given to employees
1. On the job training: Given to the clerical and other staff’s
2. Off the job training: Given to the managerial staff and workers of the production plant.
4.1.4.3 Transfer and Promotion
Transfer
The selected staff can be transferred to different units, where the staff is needed. The transfer
does not involve any change in rank. It involves shifting of persons from the present jobs to other
similar places or different places in the same job. This does not involve any change in
responsibility and prestige. Transfer and promotion are dealt by the head office. Transferred
promotions are done on the basis of the mutual agreement between the union and management.
Transfer and promotion will be made against vacant posts whenever suitable candidates with the
prescribed qualification and experience are available within the organization. But when the
suitable candidates are not available, then the post will be filled up from the external source.
While offering promotion to higher post, reservations are made for SC/ST.
Promotion
It involves shifting of persons to position carrying better prestige, higher responsibility and more
salaries. The higher positions may be filled up from within the organization. It is purely made on
the basis of performance, qualification and experience. Seniority is also an inevitable factor.
There is a promotion policy for the company. It is usually for officers.
4.1.4.4 Performance appraisal system
Performance appraisal includes the identification, measurement and management of human
performance in organization. Assessment and motivation can motivate the workers to improve
their performance. But in this organization there is no type of performance appraisal system for
employees at lower levels. Officers are given promotions according to the promotion policy
rather than performance.
4.1.4.5 Shift timings
The shift timings of employees in KEL are:
i. Administration Staff
On week days- 9.30 AM – 4.30PM
On Saturdays 9.30 AM – 12.30PM
ii. Employees in the production department
On week days 12.30 AM - 8.30AM
8.00AM - 4.30PM
4.30 PM - 12.30AM
On Saturdays
8.00AM – 1.00 PM
1.00 PM – 4.30 PM
4.1.4.6 Punishment and misconduct
An employee guilty of misconduct may given any one of the following punishments depending
upon then gravity of the misconduct.
i. Warning
ii. Stoppage of increment
iii. Withheld of future promotion or grade
iv. Discharge from the service
v. Dismissal
The following shall be the procedure for punishment
A charge sheet will be given to the employee concerned and he will be asked to give his
explanation in case of alleged misconduct primafacie appears to be of a serious nature,
suspension pending enquiry. In other case the management will decide whether a formal enquiry
should be conducted, and if the decision is for an enquiry it will be conducted. The management
on receipt of the explanation, issue notice to the receipt or in the absence of the reply or the
expiry of the date by which the reply is called for, the management will pass suitable orders.
This process will be applicable only in cases were punishments are either reduction of rank,
removal, or dismissal. In other cases, the management shall pass such orders which may be
appropriate on receipt of the employee’s explanation.
4.1.4.7 Manpower
The company has 101 skilled workers, 52 semi skilled workers, 12 special skilled workers. Staff
and security are 44 and 43 managerial persons as on 31st march 2011.
4.2 Finance and Accounts Department
Finance department regulates the financial transactions of the company. The finance function
provides authorization and control to all the subsystem to utilize money more efficiently through
a well designed mechanism the company prepares profit and loss accounts, balance sheet,
budgets, financial performance statement, and employee cost analysis etc. for the findings of the
operating results, financial positions, future prospects and many of other objects. Statement of
operating results derives the performance of transactions. This reveals the probability of the
concern during the year. The profit of the company increases year after year.
4.2.1 Department Structure
4.2.2. Functions of finance department
Finance department of the company constitute the accounts and administration and cash
management.
i. Auditing and finalization of works with the assistance of all other members of finance
department.
ii. All the accounts relating to personal.
iii. Accounting of purchase bill.
iv. Preparation of payrolls.
v. Accounting of bank and cash transactions
vi. Calculation of central excise
Asst Manager
Executive finance
Asst Accounts officer Asst Accounts Officer
vii. Sales accounting and sales tax matters.
4.2.3. Functions of finance manager
i. Estimation of capital requirements
ii. Ensuring a fair return to the investors
iii. Make sure the suitable availability of funds
iv. Laying down the optimum and suitable capital structure for the company
v. Adequate control of cash flows.
vi. Preparation, analysis and interpretation of financial statements
vii. Facilitate maximum utilization of fund
viii. Scrutinize claims and recommend payment
ix. Issue of invoices against dispatches
4.2.4. Programmes and Procedure
4.2.4.1. Accounting policies of the company
1. Accounting conventions
The financial statements are prepared under historical cost convention on accrual basis
and in compliance with the Companies Act 1956
2. Fixed Assets
Fixed assets are stated at cost less depreciation. Assets and liabilities are consistently
being recorded at historical cost.
3. Depreciation
a. Depreciation on fixed assets has been provided as per the rate indicated in
schedule XIV of the company’s act 1956 under written down value method.
b. Extra shift depreciation for double shift working has been provided in the
account.
c. Depreciation on fixed assets in respect to the project work in progress has not
been kept in abeyance as per government direction.
4. Inventories
a. Finished goods are valued at cost or market price, whichever is less for arriving at
the cost and excise duty is also taken into consideration.
b. Work-in-progress is valued at the cost after considering overheads excluding
financial charges.
c. Raw materials, material in progress, spare, stores and loose tolls are valued at
cost, cost means weighted average.
d. Scraps are valued in realizable value.
e. Goods in transit are valued at cost.
5. Sales
a. Sales compromise sale of goods and service and includes Excise duty
b. Price valuation claims on sales affected are accounted for on accrual basis
c. The reprocessed transformer oil is accounted at current purchase prices by crediting
the difference to miscellaneous income.
6. Consumption
a. Loose tools issued to shop floor are treated as consumed and written off as such.
b. Consumption of materials for production is completed on a derived basis
7. Retirement benefits
Gratuity and leave encashment are accounted for on accrual basis in compliance with
accounting standards. The amount was determined on the basis of actuarial valuation
conducted at the end of the year. As non cumulative portion of leave encashment is not
applicable to the company the same is not considered.
8. Liability on material in transit
The liability on account of the bank charges and other expenses on materials in transit on
the date of closing is accounted on accrual basis.
9. Research and development
Capital expenditure on research and development is treated as addition to fixed asset and
revenue expenditure on R & D is charged to profit and loss account under appropriate
heads in the year in which it is incurred.
10. Contingent liability
Contingent liabilities are not provided for, but disclosed in note on accounts.
4.2.4.2. Accounts and documents
The company shall in compliance with sec.209 of the company Act clause to keep proper books
of accounts with respect to:
i. All sums of money received and spent by the company and matters with respect to which
the receipt and expenditure take place.
ii. All sales and purchase of goods by the company
iii. The assets and liabilities of the company.
4.2.4.3. Sources and uses of funds
The finance manger of the company collects funds through the sales of the product from the head
office and other sources. The unit manager has a limit to deal with the fund, which is limited to
Rs. 2000000 over the limit he needs the permission from the corporate office of the company.
Payroll or salary administration is an inevitable factor of the finance department. The salary
administration is conducted in two ways
i. For employees and clerical staff under Industrial Dispute Act
ii. For managerial staff under Kerala Government Department rule 3.
For employees and clerical staff under ID Act.
The salary of employees includes basic pay, dearness, Fringe benefits (Attendance allowance or
milk allowance), night shift allowance, washing allowance, risk allowance and over time
allowance. The net result forms the “gross salary”.
Fringe benefits are the allowance which includes the attendance allowance/milk allowance. It is
available to the employees based on the agreement between management and trade union. The
period of agreement is four years. For the fringe benefit attendance is taken from 16th of the
month to the 15th of the next month. Working time per day is 8 hours. Charges of attendance
allowance are Rs.2.50 per day for an employee.
In the calculation of basic pay and dearness allowance, the attendance is taken from the 1st day of
the month to 31st of the month. Basic pay is based on the salary scale of the company. Dearness
allowance is an industrial dearness allowance or variable dearness allowance. It means, DA is
changing every month. This change depends upon the point differs every month and also, it is
different to various companies and different units of the same company. Rs.5 is charged for per
point
Over time allowance (OT) is provide to the employees, who undertake the over time work. For
the calculation of overtime, the attendance is taken as the 16th of the month to 15th of the next
month. Working time per day is 8 hours. The over time charge is calculated by using the
following formulae:
(Basic pay + DA x 2*30)/(30 days * 8 hrs)
a. Provident fund(PF)
According to the PF Act 1952, the PF contribution is deducted from the gross salary. Both
the employee and the employer pay 4.75% of his wages (i.e. basic pay and DA). This PF
contribution is forwarded to PF department.
b. Employees State Insurance(ESI)
The ESI is contribution scheme, with the employer paying 4.75% of wages and the employee
contribution is 1.75% of wages to the fund. The ESI facility avail the employees who has the
salary up to Rs. 6500 per month. The employee contribution is 1.755 of the gross salary-
washing allowance.
The net salary for employees and clerical staff by way deducting the total deduction from the
gross salary i.e.. Net salary = Gross Salary- total deduction
For managerial staff
The salary scale and DA is fixed for managerial staff based on Ker5al Government Department
Rule. When the government declares certain rate of DA to managerial staff, this will be
distributed after the recognition of board of directors. If the board the permits to the distribution
of DA, then that will be distributed to the managerial staff. Gross salary for managerial staff
includes the basic pay, DA and HRA. The deductions are made available to managerial staff in
the manner as of the employees and clerical staff. i.e., Gross salary – total deductions
4.2. Marketing
KEL has adopted general feature of marketing. The product segment is directly connected with
the customers: KEL displays advertisements in certain electrical journals only. They have
reorganized regional centers in the various major cities. It also captures orders through
canvassing order for it.
4.3.1. Policy
“To establish and maintain a process and procedure to obtain orders by identifying customer
requirement regarding products and service”
4.3.2. Department structure
4.3.3. Functions of marketing department
i. Evolve adequate marketing policy.
ii. Ensure the availability of required orders.
iii. Make competitive prices
iv. Make sure the payment before dispatching the product.
v. Provide after sales services to the clients.
vi. Ensure the optimum utilization of resources available to the company.
vii. Reviewing enquiries, traders, contracts and contract amendments.
viii. Communicating with customers
ix. Coordinating servicing
x. Maintaining invoice register
4.3.4. Functions of DGM marketing
i. Developing customer base
ii. Reviewing enquiries, tenders, contracts and contract amendments
iii. Communicating with customers
iv. Internal communication on contract requirements
v. Payment collection co-ordination
vi. Coordinating servicing
vii. Maintenance of transformers during guarantee period failure
viii. Servicing of transformer after guarantee period against customer requirement
ix. Prepare level B and level C documents
x. Prepare contract amendment review reports
xi. Prepare order acceptance/quotation
xii. Prepare sale order/ sale order amendment
xiii. Prepare estimate for tendering
xiv. Prepare maintenance/ servicing reports
xv. Maintain invoice register
xvi. Register and resolve customer complaints through designated channels
xvii. Initiate corrective and preventive actions
4.3.5. Programmes and procedures
4.3.5.1. Marketing process
The KEL collects the tenders from newspapers with specifications. After collecting tenders,
KEL prepares tenders document. This document will be forwarded to the Design Department.
The company approves the tenders up to 25 lakhs. Above 25 lakhs, the head office sanction or
approval is required for the tender acceptance. After, this the unit submit competitors quotation
with company's favor. If the submitted quotation is the best, they get the tenders.
Then the company issues an order acceptance letter to the customers. After this, the marketing
department that take part in production. Based on this letter, the design department prepares
structural design and process design transformers. The material department purchases or issues
materials to production floor or to store. Then the production is started.
At the end of the completion of the production transformers, Inspection and Dispatch function
are carried down. Sometimes, private customers like Tata Tea, Bombay Suburban Electrical
Ltd; Eastern Curry Powder etc. conduct inspection at the production floor after the completion
of the production. Then the dispatch is carried out with the specification of the tenders. The
company also provides after sales services.
The company guarantees the product for a period of 12 months from the date of
commissioning or 18 months from the dispatch whichever is earlier. After this period, the
company will provide services on chargeable basis. The company charges Rs.1500/- per head
for a day.
4.3.5.2. Marketing network
KEL’s products are marketed by extensive networks of marketing officials located in all the
major cities like New Delhi, Mumbai, Kolkata, and Bangalore etc. they provide all support
services to the sales and marketing service to guarantee complete customer satisfaction. The
KEL has a wide network of regional offices, services and business centers located in most of
the major cities in India for effective marketing, and providing efficient after sales service.
4.4. Design Department
The design department draws the structural design of the product processes for the production
department. Based on this design the transformer is produced with the specification of the
customer.
4.4.1. Policy
“To establish and maintain a process for an optimum design conforming to customer requirement
and relevant standards within a specified time”
4.4.2. Functions performed by the design department
i. Receipt the sale order from transformer marketing
ii. To ensure that the standards of the design
iii. Receipt of tender documents from the transformer marketing
iv. To ensure that the competition of design work within a specified period of time.
v. To ensure that the changes are adopted from time to time
vi. Established and maintain the process for the design work within a specified period of
time.
vii. Ensure that the feed back forwarded to transformer production section.
viii. Design planning, controlling and responsibility assignment, input and design storage
reviews.
ix. Authorizing, designing, verification and initiating design changes
x. Assign responsibility for designing
xi. Approve design outputs
Functional objectives
Reduction of design errors and re-work
Computerization of the design work at least by 25% and subsequent improvement.
4.4.3. Functions of DGM Designi. Design control
ii. Design planning and responsibility assignment
iii. Design input and design stage reviews
iv. Authorizing design verification
v. Initiating design changes
vi. Quality design personnel
vii. Sign design plan
viii. Participate in contract review
ix. Assign responsibility for designing
x. Authorize review (verification of outputs)
xi. Approve design outputs
xii. Assign product codes
xiii. Interface customer for design validation
xiv. Release specification and drawings
xv. Prepare activity completion record
xvi. Control drawing issues
4.4.4. Programmes and procedures4.4.4.1. Design process
Obtain tender document from transformer marketing.
Obtain estimates and technical specifications from the transformer marketing.
Design I stage: Preliminary design for marketing quotation
Study the specifications of the product included in specific tender received from the
marketing department.
Obtain current price of raw materials and components from material department.
Make estimates for the product as per the technical specification furnished by the
marketing department.
Send the cost and guaranteed technical specifications to the marketing department for
tendering purposes.
Design II stage: Actual design of product
Receipt of sale order from transformer marketing department
Issue of advance intimation to production planning
Make the detailed design of transformers and drawings as per the order
Issue of production drawings, specification and list of drawings to planning
Feed back from the transformer production section to design on time to time for
manufacturing the product with customer specification
Feedback of test result from quality assurance test is normally conducted in the
presents of the customer consultant or representative. Test results are to be recorded
and kept in a file for future reference by the design department.
Design change intimation to planning from design
4.5. Material and Stores Department
KEL has a Material and Stores Department which purchases the materials for the company’s
production. This department is also known as Purchase Department. The main function of this
department is to make the purchase that is required for the production and administrative
department.
4.5.1. Policy
i. To establish and maintain the process of procurement of right material and services, at
right time and at right price from approved vendors as per the production requirement and
those of customers.
4.5.2. Objectives
i. To reduce interruption of production due to delay in supply of material.
ii. To reduce the purchase cost.
The Material Department ensures that good quality materials are purchased at reasonable price.
The company has an ideal material control system. KEL follows the ABC analysis for the control
of materials. 'A' items are very important, because of the high value and frequent value analysis
are required to avoid excess capacity. ’B’ items (intergroup items) are less important than ‘A’
items. ‘C’ value items are those which require minimum control maintained at the minimum
stock level.
4.5.3. Department structure
DGM
ManagerAsst Engr Stores
(Tdiv&Sdiv)
Clerk
4.5.4. Functions of materials and stores departmenti. Sub-contractors approval and codification
ii. Purchase of material
iii. Storage and preservation of purchased materials
iv. Ensuring re-inspection of store and products
v. Release of purchase order amendments
vi. Control receipts and issue of materials
vii. Prepare monthly inventory statement
4.5.5. Functions of Deputy General Manager
i. Receive the Purchase Requisition and initiating enquiries.
ii. Verification of sub-contractors evaluation report.
iii. Preparing Purchase Committee proposals for items purchased to be approved by
Corporate Office.
iv. Preparation of purchase orders and verification with the checklist and follow up with
supplier.
v. Identify the items for cash purchase.
vi. Discharge material stores responsibility in his absence.
vii. Verification of invoices and bills from suppliers.
4.5.6. Functions of Manager
i. Issue of materials.
ii. Counting/weighing of material received/issued.
4.5.7. Functions of Clerk
i. Preparation of enquiries and receiving offers.
ii. Preparation of comparative statements, purchase committee proposals for items to be
approved by the purchase committee.
iii. Maintaining Purchase Committee Approval Register.
iv. Initiating purchase orders and follows up with the local suppliers.
v. Coordinating with stores.
vi. Verification of suppliers’ invoice/bills and recommending payment.
4.5.8. Functions of Stores in charge
i. Verification of documents such as lorry receipts, invoices transport copies of
invoices.
ii. Receipts of materials.
iii. Verification of quantity.
iv. Preparation of Goods Received Note.
v. Intimating Quality and Assurance for incoming inspection and testing.
vi. Intimate suppliers on rejections/short supply/excess supply.
vii. Maintenance of all Stores Registers.
viii. Planning storage of materials with proper identification.
ix. Identifying shelf life item requiring inspection and preparing report on this for
Quality and Assurance inspection.
x. Correlation of documents in the case of supplier is replacing a rejected lot/supply
materials in batches for the same purchase order.
xi. Preparation of monthly inventory statement.
4.5.9. Programmes and procedure
4.5.9.1. Purchase procedure
Material purchase
1. Maintenance and structural division maintains and updates a master list of purchased
products/services within the scope of this procedure. Such lists are approved by material
department.
2. Material department documents and maintain purchasing requirements as guidelines duly
approved by the general manager.
3. Purchase is made from sub-contractors approved as per quality specification1.
4. Where purchases are required to be made from sub-contractors not within the approved
lists, such lists are approved by the General Manager through waiver notes.
5. Purchase activity is initiated against purchase requisition/purchase notice form user
departments.
6. Purchase requisition is raised in respect of requirements specific to the production and
purchase notice is raised in respect of standard products for which reorder level are
identified.
7. The mode of purchasing such as inviting quotation and bid evaluation or direct purchase
is based on the documented purchasing requirements guidelines.
8. Purchase is authorized by a committee consisting of GM, Material Finance and Accounts
and the user department’s representatives. Depending on the assigned authority in relation
to value, where required the authorization obtained from the corporate office through
Purchase Approval Form.
9. The particulars of purchase committee approval are maintained in the Purchase
Committee Approval Register.
10. On finalizing purchase on the basis of guidelines/authorization, purchase order is raised
and purchasing data is verified for their correctness by the designed personnel in the
department.
11. A purchase order check list is prepared in evidence of verifying the purchasing data.
12. The purchase order is made in 6 copies. The copies are made available to Material,
Quality Assurance, and Finance and Accounts Department. Two copies are for retention
with Maintenance and Structural division.
13. The purchasing activities such as release of purchase orders, progress in supply of
products and results of receiving verification are recorded and monitored with the aid of
Purchase Monitoring Register for all purchase made in the structural divisions and for
purchase of lamination, conductor and radiator and current Transformer Division.
14. The purchase order is raised in respect of purchase against already made authorization.
15. Cash purchases are made without raising Purchase Orders, limiting value to Rs.5000 on
approval of requisition cash purchases by materials.
16. Purchases by sub contracting process are made on the basis of quality specification.
17. Verification of sub contracted jobs items are carried out by the sub contractor’s premises
where so required.
18. The verification of purchased product is carried out as per quality specification and work
instructions. When required contractually, customer is provided facility to verify
purchased product at sub contractor’s premises or company premises.
19. The purchase order released to sub-contractors clarify verification requirement either of
Quality Assurance or customer or customer’s agents. It is also clarified to sub contractor
that verification by Quality Assurance/customer doesn’t absolve the sub-contractor of his
responsibility to provide acceptable product as well as company’s right and further verify
products even after acceptance on receiving inspection and testing. Where purchase order
is required to be amended, either a purchase order amendment or a superseding purchase
order is issued with same number of copies and distribution as in above description.
Material receipt, storage preservation and issue Procedure:-
1. Stores in charge receive copies of purchase orders from materials.
2. On receiving materials against purchase orders, the accompanying documents such as
Lorry Receipt, Invoice, Transport copy of Invoice where applicable, Test certificates and
Bill of Entry in case of imports are verified by store keeper and it found in order, items
are received and entered in the Goods Receipt Register.
3. Security permits the carriers in to the company premises on verification of document and
entering the verified details in the Register.
4. On receiving the Transformer Oil Tanker, the store keeper prepares Goods Received
Note (GRN) and passes to Quality Assurance. Only after it is passed by Quality
Assurance, the oil is unloaded.
5. In respect of other materials, storekeeper prepares GRN prior to inspection.
6. All received items are accounted as per Goods Receipts Register.
7. GRN prepared in 6 copies. 5 copies will send to Quality Assurance for carrying out
inspection and testing and endorsement of results.
8. Quality Assurance endorses the test status; retain 1 copy and forward 4 copies to store in
charge.
9. Materials received as barrels/drums, cartons carboys, bag, bundles, rolls,
sheets/rods/flats are handled either manually or using cranes. Mechanical handling is
controlled with the aid of work instructions.
10. Oil received in tankers is transferred to identify storage tanks by pipelines.
11. All material are secured as per storage plan, updated and authorized by materials.
12. Materials are stored in sub-stores attached to each production area.
13. The storage plan indicates locations of storage area of steel items on open yard, oil in
tanks and sub-stores.
14. The identification/status of just received materials, passed/rejected materials and NC
procedures are as per quality specification.
15. The non-conforming materials are controlled as per quality specification.
16. Only materials passed in receiving inspection are taken in to KARDEX.
17. Items held in storage for more than the specified period are subjected to re-inspection
and testing as per work instructions for re-testing of stored products prepared by
materials.
18. The preservation of product in storage is achieved by specifying appropriate controls
and application of preservation as documented by Quality Assurance issues of stored
items to the user departments/sub-contracted production is made against stores
requisition/loan rate.
19. The expiry date, where applicable is verified prior to issue.
20. The quality of Transformer oil held in tanks is assessed referring KARDEX/Stock and
Issue Register.
21. Excess quality returns to the stores by used departments are accompanied with Store
Return Note, for accounting in the KARDEX.
22. Items taken out for processes are returned and controlled with returnable gate pass/gate
pass for lob work.
23. Where stock is held in stores below the minimum/re-order level, purchase activities are
initiated by stores in charge.
24. A monthly inventory statement is prepared and sent to Planning/Production/Finance and
Account.
25. The activities of handling, storage, identification, control of non-conforming products
and issue of materials under positive recall procedure are carried out as per work
instruction.
Various records of materials department
1. Purchase Requisition
2. Purchase Notice
3. Purchase Order
4. Purchase Order Checklist
5. Purchase Order Amendments
6. Purchase Approval Form
7. Cash Purchase Approval Register
8. Purchase Committee Approval Register
9. Purchase Monitoring Register
4.6. Production Department
The KEL Mamala has one production department. It holds two department section, which are
Planning section and Quality Assurance section. The company has two production units which
are 1.Transformer Unit and 2.Structural unit.
4.6.1. Department structure (Transformer division)
4.6.2. Functions of Deputy General Manageri. Production planningii. Material planning
iii. Monitoring progress against work order
iv. Reporting on achievements
v. Issue work orders
vi. Issue work order amendments
DGM-PRDTN
T-DIV
CHARGE IN HANDS
MANAGER PDTN
ENGINEER PDTN
OPERATORS
vii. Co-ordinate release of drawings and bill of materials
4.6.3. Functions of Manager Analyze day-to-day production activities.
Scheduling of work in advance.
Work output with the agreed work norms.
4.6.4. Functions of Engineer Verify production records on daily basis.
Complement the activities of charge in hands.
Forwarding of work allocation after verification and entering.
Arranging all types of maintenance machines.
4.6.5. Functions of Charge in hands Daily work arrangements.
Maintenance of production records.
Arranging materials in advance as per production scheduled.
Arranging inspection by QA personnel wherever necessary.
Storing of raw materials.
4.6.6. Functions of Operators Production operators as per work norms.
Proper handling of materials.
Identification of product at various levels.
4.6.7. Department structure (Structural division)
4.6.8. Functions of Deputy General Manageri. Overall management of the respective division
ii. Identifying resource requirements
iii. Review of non conforming products
iv. Identifying installation processes and control
v. Scheduling production
vi. Identifying training needs of those reporting to them
vii. Assigning personnel process wise
viii. Maintaining working environment including safety operations
ix. Providing workmanship samples
x. Controlling production processes
xi. Corrective and preventive actions
xii. Statistical techniques
Asst engineer
MANAGER PDTN
Asst Manager
Charge hands
DGM-PRDTN
S-DIV
xiii. Servicing during defect liability period and carrying out repairs against customer request
4.6.9. Functions of Manageri. Receiving work order and allocate works to charge in hands.
ii. Coordinating with planning and design department to get clarification
iii. Achieving production targets
4.6.10. Functions of Assistant manageri. Arranging work shift for carrying out the work.
ii. Monitoring records and upkeep of quality system in the shop.
iii. Preparation of weekly production report.
4.6.11. Functions of Assistant engineeri. Effective utilization of manpower working under them on day-to-day.
ii. Reporting any problem affecting adversely to the production.
iii. Process inspection of components preparing under the control.
4.6.12. Charge handsi. The effective utilization of the men and machine under their control.
ii. Drawing of the raw materials from stores for the week.
iii. Reporting of daily/ weekly production in time.
iv. The proper feedback, if any problem connected with the drawings/ production etc which
adversely affect the production.
4.6.13. Planning section
The planning section holds the fundamental function of planning for production. In this section,
planning for each stage in transformer production is planned based on sale order from marketing
and design department. The design department designs the stages for transformer division. The
materials department provided the materials in connection with sale order from marketing. Thus
the transformer is produced is produced in a planned method.
4.6.13.1. Policy
“To plan, organize and co-ordinate the activities to achieve the planned production within the set
time frame to the needs of the organisation.”
4.6.13.2. Functional objectivesi. To avoid production delay due to procedure problem.
ii. To reduce inventory carrying cost with respect to turnover.
iii. To increase material availability with respect to turnover.
4.6.13.3. Major functions Transformer Division
i. Raise purchase requisitionii. Issue work order
iii. Materials follow upiv. Production monitoring
Structural Division i. Production planning
ii. Material planning
iii. Shortlist sub-contractors
iv. Preparation of work order and amendment and maintenance of work order and
drawing Issue Register
v. Monitoring of Purchase Requisition
vi. Initiating Purchase Requisition
vii. Updating and preparation of monthly production chart for the year
viii. Float enquiries for sub-contract of site work required for production and prepare
comparative statement
ix. Preparation of work order
x. Maintenance of sub contracted product monitoring
4.6.13.4. Planning procedure Transformer Division
i. On the basis of the running contracts in hand and orders received, planning
Transformer Division Department prepares a tentative production plan for each
month on the basis of priority identified and discussed with General Manager
indicating production planned cost and due date of delivery in respect of each
project. Copies of each plan are made available to GM, Finance and Accounts
Department, Production Transformer Division Department, Materials Department
and Design Department.
ii. On receipt of sale order copy relating to new orders, production plan revise for the
month is prepared indicating material quantity and their value copies of the revised
monthly plan are made available by the authorities.
iii. On receipt of bill of materials (advance information) and drawings from design
purchase requisition is prepared as a measure of advance material planning and
copy provided to material department. Purchase Requisition follow up Register
monitors the flow of purchase.
iv. Based on the sale order drawings and bills of materials, work order is prepared
indicating particulars of customer sale order number, drawing references
operations and work to be completed.
v. The issue of work order is controlled with the aid of Work Order Issue Register.
vi. Work order amendments based on material change or other deviations will clear by
design department and issued where required and copies distributed.
vii. Issue of drawings to shop floor and sub-contract is co-ordinate and controlled by
planning with aid of Drawing Issue Register.
Structural Divisioni. On the basis of running project or hand planning structured document budgetary plan
for the year indicating project wise materials and their value for information of GM
and Design manager.
ii. A tentative production plan is raised in each quarter on the basis of priority identified
and discussed with GM. Planning Structural Division made a plan indicating months
production are planned, cost and find requirement in respect of each project copies of
plan are made available to GM, Finance and Accounts Department, Planning-
structural Division and Stores Department.
iii. On receipt of sale order copy relating to new projects, production plan for the month
is prepared indicating material quantity and the value.
iv. On receipt of bill of materials and drawings from design department, Purchase
Requisition is prepared as a measure of advance material planning and copy is
provided to monitoring through a Purchase Requisition follow up Register.
v. On the basis of sale order, drawings and bill of material and work order is prepared
indicating particulars of customer sale order no:, Drawing reference, operation and
work to be completed. The reverse site of that work order provides facility for
production of raw materials from time to time.
vi. The issuance of work order is contracted with the width of work order Register.
vii. Work order amendments on the basis of material change or other deviations as
clearly by design.
viii. At the close of each week, a weekly production report is prepared and copies made to
planning structural division and Finance and Accounts Department for monitoring.
ix. For the purpose of facilitating the financial audit a Register titled Production for the
month is prepared by Planning Structural Division, that production information on
project use total, quantity and value.
x. Dispatches, work-in –progress, cumulative sales and work-in –progress at the end of
the month.
xi. Planning Structural Division documents order position is taken for the whole year in
a register. Monthly chart is also prepared for comparative statistical projection of
varieties in achievements during different of year.
xii. Short falls in achievements again analyzed and inputs provided for corrective and
preventive action by Planning Structural Division.
4.6.14. Quality assurance section4.6.14.1. Policy
“To establish and maintain a quality system which will ensure incoming materials, in process
sub-assemblies and finished products conforming to the specification.”
4.6.14.2. Functional objectives Reduction in quality related customer complaints after delivery of the product.
4.6.14.3. Structure
MGR QA
ASST. MGR
CHARGE IN HAND SUPERVISORS
4.6.14.4. Functions of the section
Arranging incoming material inspection as per quality plan
Arranging in process inspection at the Specified Quality Assurance Checkpoints
Arranging testing of finished goods at the factory or at site as and when required
Verifying and preparing consignment Audit Report
Arrange calibration of equipment either house/with external agencies
Accepted and sign Goods Received Note for goods conforming to specification
Issue non-conforming reports
Sign observation sheets and certificates
Sign and issue assembly inspection reported and consigned audit report
Incoming materials inspection at the specified Quality Assurance Check points
Final testing of transformer
Conducting consigned audit reports
4.6.14.5. Functions of Manager
Identifying resources for inspection and testing
Planning requirements for quality
Planning requirements for inspection and measurement
Calibration monitoring, corrective and preventive action
Statistical techniques
Propose approval of sub-contractors
Audit production sub contractors
Carry out subcontractor performance evaluation
Identifying non conforming products
Stop further processing of in process non conforming products
Release products to customers
4.6.14.6. Functions of Assistant manager
Accept and sign Goods Received Note for goods conforming to specification
Issue non conforming reports
Sign observation sheets and test certificates
Sign and issue assembly inspection reported and consigned report
4.6.14.7. Functions of Charge in hand/supervisor Incoming materials inspection as per quality plan
In process inspection at the specified Quality Assurance Check points
Final testing of transformer
Conducting consigned audit reports
4.6.15. Programmes and procedure
1. Refer Goods received note in respect of received products as a call for receiving
inspection and testing.
2. Inspection and test requisition is received from materials stores in respect of materials
held in store for more than the specified shelf life.
3. On the basis of Goods Received Note requisition, sampling and testing of specific
materials are carried out by personnel as assigned by Quality Assurance.
4. The responsible assigned person drawn samples and carries out testing as per work
instruction.
5. The extent and nature of receiving inspection and testing is determined on the basis of the
class of sub-contractors and availability of test certificates.
6. The result of inspection and testing are recorded in Incoming Inspection report. The
sample sizes characterize to be verified and acceptance criteria adopted as per Quality
Assurance personnel endorses the results on Goods Received note/Requisition.
7. In case results do not conform to requirements a product non-conformity record is revised
in triplicate and 2 copies forwarded to material stores.
8. If required General Manager as per assigned authority at the instance of material stores
reviews the nature of non-conformity and permits deviation by endorsing accepted on the
Product non-conformity Record.
9. If deviation is not permitted, REJECTED status is assigned and Rejection Note sends to
the sub-contractor with a copy to Finance and Accounts Departments.
10. The customer supplied products are subjected to receiving inspection and testing in the
same manner as above unsuitable products are returned to customer under intimation.
11. Materials held in storage beyond specified shelf life are re-inspected and tested as per
work instructions.
Production process and procedure
Transformer division
Process
KEL manufactures distribution transformers and medium power transformers with the
capacity of 600000KVM. Transformer Division has different stages in manufacturing
transformers. In each stage one charge in hand controls the activities in that particular
process. The different stages are:
Core Building
In this stage the frame is cut in the shape of ‘E’. Silicon steel is cutting with the E shape for
frame fabrication.
Insulation and Assembly
The insulation are done in core building, HV winding and LV winding. The press board is
used for insulation work. Insulation helps to overcome the occurrence of short circuit.
HV winding
The conductors are used for the high voltage coil winding. The conductor is wounded or
insulated with Double Paper Grade Strip. HV winding produces high voltage. The high
voltage electricity has to be transmitted to distribution.
LV winding
Here also conductors are used. Low voltage coil are wound with double paper grade strip.
This strip reduces the possibility of short circuit. This coil consists of low voltage electricity
which comes from outside. In real process the IXth stage is core coil assembly. The core
assembly, HV winding and LV winding are assembled in this stage.
Terminal Gear Mounting
The LV winding terminals are fixed in to a bush. The terminal gear is built with copper or
aluminum.
Tanking
The fabrication tank has been made available through sub-contract or manufacturing the
structural unit. The dried TG mounted coils are put in the tank. Then the tank has to be filled
with oil. Then tightening take place.
Final Testing
When the production process is completed, final test conducted by company supervisor.
Painting and Dispatching
The final stage is painting and dispatching the transformer. Sometimes, in this stage customer
can also inspect the transformer. After the payment is made by the customer, dispatching the
transformer is done as the specification of the tender.
Production infrastructure
The infrastructure needed to design, manufacture and install products as per customer
requirements are identified and provided. Infrastructure includes building, utilities, machines,
inspection and testing devices, standards and codes, software and supporting devices. Preventive
maintenance and upkeep of infrastructure is done for ensuring the capability of the infrastructure
to meet the customer requirements. When there is a breakdown occurs, immediate corrective
action will take. All statutory and regulatory requirements regarding the manufacturing and
installation of products and environmental regulations are duly compiled.
Procedure
1. On the basis of production plan for the month initially provided and update from time to time from by Planning Transformer Division based on work orders provided.
2. The materials required for the production held in material stores are drawn by producing the Stores Requisition against work order.
3. The wage of loading of materials and sequence of production operation are carried out as specified in the process sheets/assembly checked sheet.
4. Operations of machine/production process including settings and first of approval are controlled with the work instructions and by utilizing personnel of required skills.
5. Updated master list of personnel with specialized skill are approved by Planning Transformer Division are maintained by Production Transformer Division.
6. Production and labor allocation sheets duplicate are prepared and issue shift wise daily to assign qualified personnel in relation to process.
7. Drawings/specifications based on the work order are drawn from design and referenced during process:. Application codes and standards are referenced and followed.
8. The particulars of shift production are recorded in the production and labor form, indicating the operator, operation carried out and the production output including labor time. A copy of the form is forwarded to Planning Transformer Division for monitoring productivity.
9. Stages for in-process inspection and tests are identified and carried out by Quality Assurance against assembly check sheet inspection and test status is assigned.
10. Daily production details are recorded in a daily finished goods register indicating work order wise production figures.
11. Details of monthly production at various stages are recorded in production program for taking corrective action to maintain production.
12. On completion of final assembly testing and painting and on receipt of dispatch advice from Transformer Marketing, products are dispatched by preparing the delivery chelan.
13. Dispatches are accounted and monitored through a Dispatch Register indicating customers’ name of work order, data and mode of dispatching items authorized by Quality Assurance are dispatched.
14. Achievements of dispatches are received against plans short falls if any analyzed for corrective and preventive action.
TRANSFORMER PRODUCTION PROCESS- FLOW CHART
LAMINATION
CORE BUILDING
TANK
END FRAME FABRICATION
INSULATION CUTTING
ASSEMBLY
WINDING CONDUCTOR
WINDING
FINAL TESTING
TANKING
FINAL DRYING
QA CHECK
TERMINAL GEAR MOUUNTING
QA CHECK
REBLADING
INITIAL DRYING
PAINTING
DESPATCH
Structural division
In this division, there are several machines. In each machine one gang is working. One
gang contains three workers. These three workers are controlled by one charge in hand. A
gang involves one welder, one fitter and one unskilled worker. The machine and its
products are given:
1. Gear Hobbling Machine- it is used for gear cutting.
2. Milling Machine- slots, plane milling etc used for cutting
3. Lath Machine- for forming thread.
4. Vending Machine- used for 12 mm pipe bending.
5. Gillette Machine- for cutting the plate up to 12 mm.
6. Press Breaker Machine- plates blending 90 degree the capacity up to 12mm.
7. Drilling Machine- used for drilling the plates.
8. Mug welding- it is used for welding.
Process
a) Marking
b) Cutting
c) Drilling
d) Bending
e) Setting
f) Welding
g) Surface preparation
h) Straightening
i) Painting
j) keeping
Production Procedure
1. On the basis of production plan for the month initially provided and update from time
to time from by Planning Transformer Division based on work orders provided.
2. The materials required for the production held in material stores are drawn by
producing the Stores Requisition against work order.
3. The wage of loading of materials and sequence of production operation are carried out
as specified in the process sheets/assembly checked sheet.
4. Operations of machine/production process including settings and first of approval are
controlled with the work instructions and by utilizing personnel of required skills.
5. Updated master list of personnel with specialized skill are approved by Planning
Transformer Division are maintained by Production Transformer Division.
6. Production and labor allocation sheets duplicate are prepared and issue shift wise daily
to assign qualified personnel in relation to process.
7. Drawings/specifications based on the work order are drawn from design and
referenced during process:. Application codes and standards are referenced and
followed.
8. The particulars of shift production are recorded in the production and labor form,
indicating the operator, operation carried out and the production output including
labor time. A copy of the form is forwarded to Planning Transformer Division for
monitoring productivity.
9. Stages for in-process inspection and tests are identified and carried out by Quality
Assurance against assembly check sheet inspection and test status is assigned.
10. Daily production details are recorded in a daily finished goods register indicating
work order wise production figures.
11. Details of monthly production at various stages are recorded in production program
for taking corrective action to maintain production.
12. On completion of final assembly testing and painting and on receipt of dispatch advice
from Transformer Marketing, products are dispatched by preparing the delivery
chelan.
13. Dispatches are accounted and monitored through a Dispatch Register indicating
customers’ name of work order, data and mode of dispatching items authorized by
Quality Assurance are dispatched.
14. On the basis of customer specified installation plan indicating the date by which
materials including tools and tackles for different stages of erection should reach the
site.
15. Copies of the plan are to planning Structural Division, Design Department and
Material Department.
16. The tentative installation plan is received at intervals of 6 months the plan updated.
17. The site requirements are identified and documented by planning Structural Division
as site requirement document. The document is reviewed and approved.
18. The site required document indicate size of temporary structures, manpower tools and
tackles, consumables and sub-contracted workmen/ security personnel required for
installation at different frame.
19. Actual movement of tools, tackles and materials for installation is commenced on
receipt of confirmation from material stores department about the civil work
completion and clearance from customer for commencement of installation work.
20. The materials held at site are adequately protected from deterioration, properly stored
and their stock issue is controlled by the site personnel designated by Production
Structural Division.
21. Handlings of materials at site are done using validated equipments and observing
safety requirements.
22. Site status report is prepared by site engineer and forwarded to Production Structural
Division and Material Stores.
23. Installation at each stage is controlled with the aid of installed check sheets.
24. On completion of installation the structure is handed over to customer only after joint
inspection by customer designated person/ agency and by site engineer.
PRODUCTION PROCESS- FLOW CHART (STRUCTURAL)
MATERIAL PREPARATION
SETTING
MARKING
CUTING
STRAIGHTENING
DESPATCH
CLEANING AND PAINTING
MACHINING
WELDING
ASSEMBLY
INSPECTI-ON
4.7. Security Department
There is an In house security department in the KEL, Mamala unit. The security department is
under Personnel and Administrative Department and the Security head reports to Manager, P &
A.
There are 9 security staffs, of which 3 are permanent and 6 are temporary. The temporary staffs
are appointed from the District Sank Board on contract basis. The contract period is usually 6
months.
4.8. Safety and Environmental Control
This procedure is indented to ensure safety status of operating machines and equipment
installation to maintain safe working practices. Manager P&A, KEL Mamala unit holds full
responsibility for the operation of this procedure.
Work Environment
The work environment requirements regarding products should be maintained. The safety rules
and practice in the shop and floor is determined and maintained. Personnel protective equipments
are made available and employees are trained and made aware of the importance of using them.
Basic facility to drinking water, sanitation and rest rooms are provided. Maintenance and upkeep
of the environment is done by respective departments.
Machines, Equipments and Electrical Installations
1. Maintenance department maintain an updated list of pressure vessels or lifting
equipments as authorized by the production department with the preview of safety
maintenance.
2. The pressure vessels are prudently maintained and got certified by the designated
authority of inspectorate of the factories as per regulation.
3. Cranes, hoists and chain pulley blocks are inspected once in a year by an agency
approved by inspectorate of factories and test certificates are maintained.
4. Electrical equipments are inspected annually by the electrical inspector and defects
rectified by the licensed conductor.
Personnel safety
i. Employees working in hazardous area or activity in factory, use or more safety gadgets
namely helmets, safety shoes, apron, gloves, and safety belts.
ii. Visitors when permitted to enter the factory work area provided with safety gadgets
needed as appropriate.
iii. Persons working on roof and structure use safety belts compulsorily.
iv. Personnel and administration monitors and ensures that safety requirements are compiled
with personnel.
Fire and safety
i. Material in storage or process area are prone to fire are identified specifically and the
type of fire extinguishers needed to deal with these are listed.
ii. Location wise requirements of fire extinguishers are maintained by personnel and
administration.
iii. Fire extinguishers are checked at specified intervals and refille or replaced when
necessary.
Chapter 5
S.W.O.T Analysis
A detailed study has been conducted in order to analyze the strength, weakness,
opportunities and threats of the organization.
5.1 Strength of the company
i. It has a good company background.
ii. It has got ISO 9001 and 2000 for quality.
iii. It consists of highly qualified personnel.
iv. It provides an inevitable and valuable service to society.
v. It has a good infrastructural facility.
vi. There is a direct control from the Kerala govt.
vii. It ensures quality of the product.
viii. It maintains good industrial relation.
ix. The company manufactures good product without any delay.
x. The company increases the profit year after year.
5.2. Weakness of the company
i. Adequate controls of material are not adopted.
ii. Modern technology and machines are not adopted.
iii. The company has not adopted the new method of accounting.
iv. Less number of qualified personnel in some areas.
v. Delay in decision making.
vi. Lack of performance appraisal system
Opportunities
i. Extend market to foreign countries.
ii. It has an opportunity with regards to adopt new technology in production.
iii. Opportunity to adopt new methods of accounting.
iv. The company has an opportunity to buy quality materials and to maintain an
effective material control.
Threats
i. Competition from private enterprises is the major threats to the company.
ii. Govt. regulations and foreign exchange fluctuations.
iii. Absenteeism is another threat for the organization
The above depicted SWOT ANALYSIS reveals the cause of unsatisfactory performances
and possibility of future progress.
Make it more elaborative
.
Chapter 6
Observations and Conclusions
Observations
The sales of the firm is increasing year by year
Company provides satisfactory wages to the employees
Company gives prime importance to quality.
The net worth of the firm is increasing every year.
Company has a good team of management and technical staff.
Company has good brand equity
Healthy employee employer relationship exist in the firm
No pollution problem
Company conducts social welfare activities
Conclusions
The company should improve its sales promotional activities.
Give more worker participation in decision making process
Company should request financial assistance from the government for avoiding
cumulative loss.
The company should be more competitive against private firms.
Adequate control of material is necessary.
Company has to adopt new technology in production.
Minimize the core loss of current.
The Kerala Electrical and Allied Engineering Company Ltd. , is being one of the biggest public
limited companies in the state of Kerala, is doing great help to the nation by providing very
important and essential equipment to various industrial concerns and various electricity boards in
India. Company has got ISO 9000, 2000 etc. for its excellent functioning. The experienced group
of directors, efficient management team and highly dedicated employees are the most precious
blessing of the company.
Company should be in touch with the market with the market and customers through researchers
to monitor the changes taking place in the market. Through this the firm shall achieve much
more in the coming years.
The future will no doubt witness a more competitive environment coupled with the dynamic and
vibrant sector, the company has to rise up to occasion to be successful in future years to come.
