Kirloskar Project

8/2/2019 Kirloskar Project

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PARTA

1 . INDUS TRY PROFILE

India is gifted with large quantity of iron ore with high ferrous content, which isthe crucial raw material

for producing the steel. Hence India is one of the largestproducers of steel in the world.

With the help of liberalization, globalization of economy in the process, thereis a scope for

economic development, which means there will be focus oninfrastructure. This will lead to considerable

demand for steel. As its mainapplications are in the construction, engineering and automobile sectors,

which arethe key elements in building infrastructure, steel is universal intermediate and hasvery strong

forward and backward linkages hence steel industry has become one of the core sector of the economy.

Though India one of the large steel producers, it has low perceptsconsumption of steel incomparison with order developing and developed countries.

India is fortunate in having intensive iron ore deposits with reserves estimatedat 10.3 billion,

which is more than th of the world reserves. Further the averageiron ore content of Indian ore is above60% in India, the iron ore reserves are mainlyfound in the states like Orissa, Karnataka, Bihar, M.P, Goa,

A.P., Rajasthan andsome parts of Western Maharashtra.

When, we think of the steel Industry, the first thing that comes in to our mindis pig iron. This is

because of its name. When metal from blast furnace is paired in toMoulds and solidifies it assumes a

shape which resembles the back of a pig, hencecalled as pig iron.


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GLOBAL SCENARIO OF PIG IRON:

The demand for the international has a sharp rise, the total production of pigiron. It is estimated at

500MT, in which developed nation accounts for 45% of thetotal production seeing the potential demand

many mills in USA such as a Nucor,Norigstar, Steel and Max steel are switching over to pig iron

production.


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GROWTH OF PIG IRON IN INDIA:

Before liberalization the pig iron industry was monopolized by the integralsteel plants to utilize

the liberalization policy initiated by the Government. Decline inthe pig iron production and paved the way

of helping the ISPs be utilize pig iron formaking steel to gain value addition.The integrated steel plant (ISP) is the major supplier of pig iron. Public sector contributes up to

90% of the Pig Iron supply. According to the Steel Ministry Report,demand for pig iron is estimated to

increase by 37% over next 8 years.


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Steela versatile commodity, most widely used metal in the world, forms acore constituent of all majoreconomies. . Accordingly, Steel Consumption is aderivative of the growth pattern of its various end-use

sectors viz. manufacturing,housing, infrastructure, automobile etc. that ultimately steer the countryseconomy.

The steel industry is believed to have been operating at around 90 per centcapacity utilization

factor in 2004. As per International Iron and Steel Instituteestimates, global steel demand has increased

by around 8.8 per cent. The growth indemand was an outcome of strong demand from almost all major

consumingcenters. The strongest increase in steel consumption was recorded in North America(+15%)

while the rest of the OECD consumption increased by 3.4%, China recordedclose to 11% increase in

consumption. The Indian steel industry is almost 100 yearsold now. Till 1990, the Indian steel industry

operated under a regulated environmentwith insulated markets and large-scale capacities reserved for the

public sector.Production and prices were determined and regulated by GOI. The steelsector was deregulated in

1991-92, when controls on capacity and prices wereabolished along with quantitative trade restrictions.

Import tariffs were also broughtdown substantially. In 2000-01, the Indian steel industry operated at

finished steelproduction level of 26.7 million tones with apparent finished steel consumption at26.9million tones. . However, with the onset of liberalization, the Indian steel sector witnessed entry of several

domestic private players and large private investmentsflowed into the sector to add fresh capacities. In

2004-05, the indigenous productionof steel was38.4 million tones along with apparent finished steel

consumption at 33.4million tones.

Today, India produces steel of international standards conforming to almost allgrades and

varieties and has been a net exporter for the past few years, whichshows the growing acceptability of its

products in the global market, and mostimportantly its increasing global competitiveness.

World Steel Industry


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Steel, the recycled material is one of the top products in the manufacturingsector of the world.

The Asian countries have their respective dominance in theproduction of the steel all over the world.

India being one among the fastest growingeconomies of the world has been considered as one of the

potential global steel hubinternationally. Over the years, particularly after the adoption of the

liberalizationpolicies all over the world, the World steel industry is growing very fast.

The following table gives a clear picture upon the major crude steel producersin the world as ofthe year 2005:

STEPS TAKEN TO BOOST STEEL INDUSTRY IN INDIA:In budget 2004-05, the customs duty on non alloy steel was reduced from15 % to 10 per cent and

on alloy steel from 20 per cent to 15 per cent. In August2004, the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent; on melting scrap from 5 per cent to 'zero' and on ships forbreaking from 15per cent to 5 per cent.

Further, customs duty on several raw materials used by the steel sector likenon-coking coal, met

coke and nickel has been reduced to 5 per cent and on cokingcoal to 'zero'.

To bring down the prices of steel, the excise duty on steel products wasreduced from 16 per cent

to 8 per cent with effect from February 28, 2004 with acaveat that the duty regime will be reviewed.

Budget 2004-05 revised this partially byincreasing the duty from 8 per cent to 12 per cent, as the intended

impact of duty cuton moderating prices was not achieved.

STRUCTURE OF INDIAN STEEL INDUSTRY:

The Indian steel industry can be divided into two distinct producer groups:

1) Major Producers: Integrated Steel Produrs (ISPs) includes large steelproducers with high levels of

backward integration and capacities of over 1 MT. SteelAuthority of India Limited (SAIL), Tata Steel,

Rashtriya Ispat Nigam Limited (RINL),JSW Steel Limited (JSWSL), Essar Steel Limited (Essar) and

Ispat IndustriesLimited (Ispat) form this group. SAIL, TISCO and RINL produce steel using the


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blastfurnace/basic oxygen furnace (BF/BOF) route that uses iron ore, coal/coke as thebasic input mix for

producing finished steel, Essar and Ispat employ Electric ArcFurnace (EAF) route that uses sponge iron,

melting scrap or a mix of both as inputand JSWSL uses COREX, a revolutionary technology for making

steel usingbasically iron-ore and coal.2)

2) Other Producers: This group consists of smaller stand-alone steel plants thatinclude producers and

processors of steel.

Processors/Enrollers: Units producing small quantities of steel (flat/longproducts) from materialsprocured from the market or through their ownbackward integration system.

Stand alone units making pig iron and sponge iron. Small producers using scrap-sponge iron-pig iron combination produce steelingots (for long

products) using Electric Arc Furnace (EAF) or Induction ArcFurnace (IAF) route.

The steel industry , in general, is on the upswing, due to strong growth indemand propelled

particularly by the demand for steel in China. The world scenariocoupled with strong domestic demand

has benefited the Indian steel Industry.


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2. COMPANY PROFILE

Kirloskar Ferrous Industries (KFIL) is the youngest company in the Kirloskar group. The company is thelarge-scale industry to begin operations in the rural &industrially backward district of Koppal. It began

manufacturing Foundry Grad PigIron in April 1994 and Automotive Castings in April 1995.The

companys Pig Iron &Casting are well known for their quality throughout the country. The companywasawarded ISO 9002 Quality Certificate in January 1996 & was awarded QS-9000 inDecember 2001

the first QS-9000 certified company for manufacture & selling of pigiron in India. The manufacturing

facilities at the company are of world standard & themarket for its automotive castings is growing

steadily.

All required environmental control equipments were planned at the planningstage itself & are in

operation now. This very well within the limits prescribes Govt.,authorities the pollutions. The success of

this company is that industrially backwardrural area has led to high-level industrial activity & it is not

surprising that the newKoppal District has found its due place in the industrial map of Karnataka.

The company is located on the banks of Tungabhadra reservoir, near to therich iron belt of theHospetBellary range, adjacent to NH63 connecting Hospet-Hubli passing through Koppal & Gadag.The plant is 16k.m. from Hospet & Koppal.NH-13 is connecting Chitradurga & Solhapur passes by the

side of the plant(approx., 1.0k.m.) the nearest railway station is Ginigera, which is 5.0 Km away fromthe

plant.The industry was born with unique advantage of having behind the immenseaccumulated

experience of the group in the field of foundry business, at a time whenthe de-licensing and liberalization

policies of the government were resulting in rapidgrowth in automotive and farm mechanization.

The plant has two mini blast furnaces of 350MT capacity each, capable of producing

1,20,000MT/year. This amounts to a total installed capacity of 2,40,000MT/year. The plant manufactures

foundry grade pig iron suitable for automotive casting & other grades such as basic grade & special grade

pig iron tomeet the requirement of other steel industries. The plant has a foundry unit, quippedto produce30,000 MT/year of Grey Iron casting for a variety of applications such ascylinder heads & different types

of Housings required by automotive sector tractor division, commercial vehicles & Diesel engine

industries.

The company has engaged 873 direct employees & about 800 peoples areworking through

contract for effective functioning of the day-to-day activities, with anannual turnover of Rs.2500 million

per annum. The company is committed toachieve total consumer satisfaction through adoption state-of-

the-art manufacturingtechnologies & 7 processes with continue improvements. The company is

alsocommitted to improve quality of work life of its employees through improved workpractices. The

company is responsible for the coming up of many ancillaries present,there are around 20 ancillary units

spreads over Koppal. The company has provideddirect employment to about 1000 people & indirect

employment to about 10,000people.

Iron ore is brought from the mine owners in the calibrated from Hospet &Bellary Iron ore beltwithin the distance of 50 kms. Coke is mostly imported fromChina. Other minerals like Limestone,

Dolomite, Manganese ore, Quartz etc., areproduced locally.Almost all foundries and pig iron users in the

country are purchaser of pig ironfrom the company supplies quality castings to all renowned

automobilemanufacturers like Mahindra & Mahindra, Marti Udyog, Escorts, Tafe and Simpsonto name

few.


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A. BACKGROUND AND INCEPTION OF THE COMPANY:History

The vision of Mr. Laxmanrao Kirloskar, which is being respected world widefor engineering

excellence, can be traced to have its beginning of having cast thecasting of a humble plough.

All though the passing years the Kirloskar group has had a long & closerelationship with the

foundry business with several group units specializing in themanufacture of high quality ferrous & non-

ferrous casting.

Kirloskar Ferrous Industries Limited was born with the unique advantage of having been

conceived with ideas accumulated through experience & expertise of the group in the field of foundry

business, at a time when the de-licensing andliberalization policies of the government came forth in the

year 1992 resulting in therapid growth in automotive and farm mechanization sectors.

The Kirloskar Group of Companies :

Kirloskar in made up of 8 major group companies, who players in major sectors like

manufacturing, oil and gas, power, construction and mining, agriculture,industry and transport each led by

the engineering and managerial talent in India. Inaddition to engineering, Kirloskar also have interests incivil utility systems and inInformation Technology and communication. These 8 companies are from the

coreof Kirloskar group. Each company is a renowned name in its own area of operationand is respected

world wide for its services and products.

Kirloskar Brother Limited (KBL) Kirloskar Ferrous Industries Limited (KFIL) Kirloskar Middle East FZE (KMEF) Kirloskar oil Engines Limited (KOEL) Kirloskar Pneumatic Limited (KPCL) Kirloskar Proprietary Limited (KEPL)Kirloskar is also partner in joint venture with companies as Copeland Limited.This is a joint venture

between Kirloskar Brother Limited, Indias leading engineeringcompany and Copeland Corporation of

the USA, the world leader in air- conditioningand refrigeration compressors. Also Kirloskar Ebara andToyota Kirloskar Motors her prestigious joint ventures.

Kirloskar Copeland Limited (KCL) Kirloskar Ebara Pumps Limited (KEPL)


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Kirloskar has shaping capable managers and dedicated human beings atKirloskar Institute of

Advanced Management Studies. It is Kirloskar education center for imparting knowledge to the managers

of tomorrow.

Kirloskar Institute of Advanced Management Studies (KIAMS)

B. NATURE OF BUSINESS CARRED:The company manufactures the Pig Iron in three different grades, byCalibrated Iron-ore brought

from mine owners in the Hospet & Bellary Iron-ore beltwithin the distance of 50 kms. Coke is imported

from China.

Iron Ore, Limestone, Coke & Dolomite are the raw materials for themanufacturing Pig Iron.

C. VISION, MISSION & QUALITY POLICYVision:

To be a world class product leader through the state of art manufacturingtechnologies &

process

Values:To achieve the MISSION & VISION, the company derived following values:

1.Customer Orientation

2.Vendor Development

3.Development of HR

4.Process & product excellence

5.Responsible corporate neighbor

Mission:A family committed to Growth & prosperity of the organization throughleadership activities

attributes & quality orientation of people & process thatcontinuously satisfy the customers with their ever

changing needs.1.The company is a family to growth & prosperity of the organization throughteam work.

2.Family that is committed to growth & prosperity leadership is promoting tool.

3.People & processes in place to satisfy customers & shareholders throughcontinuous

improvements.

4.Committed to total quality through systems & institutionalization.

5.Integration of people and processes to bring about the rate of internalchanges faster

than that of external change.


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Quality Policy:The company is committed to achieve total customer satisfaction throughadoption of state of the

art manufacturing technologies and process with continuousimprovements. The company is also

committed to improve quality of work life of itsemployees through improved work particles.

Quality objectives:Customer Satisfaction: Maximization of customer satisfaction by consistentsupply of quality

casting pig iron.

Supplies Quality Assurance: provide technical support and guidance to their suppliers through

quality assurance programmers to ensure highest quality of purchased materials suppliers it is a critical

link in company quality system.Employee Development: development and motivation of all employees byproviding necessary

training and support to bring out their full potential.

Product Excellence: continuously technical and managerial innovation andcontinuous

improvement our endeavor is to push themselves till our companyprocess and products are finest in thecountry and compare with the best in theworld.

D. PRODUCT PROFILE:The following are the three different grades of Pig Iron manufacturing by thecompany. They are:

1.Foundry grade Pig Iron

2.S.G. grade

3.Basic grade


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The companys products are used in the following industries.They are:

Textiles Pumps Automobiles Pipes & Fittings Fans Engines and Compressors Others

The following table represents the basis of products differentiation and the listof industries where

these products are used:


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Chemical composition of the product is the reason for production for differentkinds of products.

Mainly products are differentiated on the basis of silicon compensation.Company has got

different kinds of customers varying between with high or lowrange of silicon contents.

Keeping the wheels of progress turning in every way always that is, how weoperate.


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Product Mix:

E. AREA OF OPERATION:The area of operation of the company is global; it has its branches in other countries also.

Namely:

GLOBAL:

Indo-Malaysia Engineering Co., Malaysia Kirloskar Industries, Philippines Kirloskar Kenya Ltd., Kenya

The Main & Subsidiary branch of the company is as under,


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NATIONAL :

KFIL Main Office address: REGISTERED OFFICE

Laxman Rao Kirloskar Road

KhadkiPune 411003 (INDIA)

The main production unit of the company is situated in Bevenahalli (Koppal District),which is surroundedby the rich resources, in terms of raw materials, water, humanresources & a transportation facility. The

exact address is as follows,

REGIONAL :

KFIL Address:Village: Bevenahalli

Post: Hitnal (PIN 583234)

Dist: Koppal

State: Karnataka (INDIA)

ZONAL LEVEL :

F. OWNERSHIP PATTERN :

The Kirloskar Ferrous Industries Ltd. is Public Limited Company. It hasissued shares to the

general public. It gives regular dividend to share holders.

Shareholding Pattern as on 31st

March, 2007


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G. COMPETATORS INFORMATION:

As the company has got two kinds of main products the competitors of thecompany are broadly dividedaccording to their type of procurement. They are asfollows,

Foundry:1.Ashok iron works Pvt. Ltd.,

2.DGP foundry

3.Nalcast

Pig Iron:1.Sesa Goa Industries Ltd., Goa

2.Kudhuremukha Iron Ore Ltd

3.Kalyani steels Ltd

4.USHA Steels Ltd

5.Jindal Vijaynagar Steels Ltd

H. INFRASTRUCTURE FACILITIES:

The following are the infrastructure facilities provided by the company. They are:

1. Power: KFIL has the following facilities for getting the required amount of power. State electricity boards


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Two steam turbines/ Generators (capacity 3.5 mw each) using blastfurnaces gas as fuel. Kirloskar power supply Pvt. Ltd is established adjacent to KFIL and hasthe total installed

capacity 19.5mw.

2. Water: Major requirements of water are being pumped from nearly Tungabhadrareservoir by laying apipeline for almost 7km.

3. Transportation: It have a wide transportation facility, it has linkage with NH-63.

4. Hospital: A hospital is build to cater the medical needs of employees.

5. Canteen: The KFIL has a good canteen facility.

6. Furniture: In KFIL every department has well equipped furniture and computers.

I. AWARDS:

The following are certificates of awards given to the company. They are asunder:

ISO14001 Certificate TS-16949 Certificate QS-9000 Certificate

J. WORK FLOW MODEL


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K. FUTURE GROWTH AND PROSPECTUS:

GLOBAL SCENARIO OF PIG IRON:The demand for the international has a sharp rise, the total production of pigiron estimated at

500mt. Developed nation accounts for 45% of the total productionseeing the potential demand many mills

in USA such as a Nucor, Norigstar, Steeland Max steel are switching over to pig iron production.

GROWTH TREND OF PIG IRON SECTOR IN INDIA:


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Before liberalization the pig iron industry was monopolized by the integralsteel plants to utilize

the liberalization policy initiated by the government. Decline thepig iron production and paved the way of

helping the ISPs be utilize pig iron for making steel to gain value addition.The integrated steel plant (ISP) is the major supplier of pig iron. Public sector (ISP) contributes

up to 90% of the pig iron supply.

GROWTH TREND OF THE COMPANY:As the company is committed to produce quality products, it results inattracting more number of

customers & to beat the competition.

As per the infrastructure is concerned, the company has a well equipped &sophisticated

infrastructure which helps the company to meet the customersdemand in time.

By looking at the present infrastructure, skilled workforce, technology &emerging demand

condition, company is planning to put one step ahead i.e. bydiversifying to steel manufacturing industry.

As the demand for the automobiles are increasing the demand for theproducts of the company is

also increasing, so the company has got a clear & brightfuture.


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PARTB

McKinseys 7-S FRAME WORK

INTRODUCTION

Japanese first introduced this model. The 7-S model is better known asMcKinseys 7-S. This isbecause the two persons who developed this model. Tompeters and Robert Waterman, have been

consultants at Mc Kinsey and company atthat time. They published their 7-S model in their article

Structure is notorganization (1980) and in their books The art of Japan management (1981) andinsearch of excellent (1982). The model starts on the precise that an organizationis not first structure, but

consists of seven elements:

Structure Skill Style Strategy System Staff Shared value.

They argued that when things went wrong, these Ss were manipulated togive a solution. Out of

the 7, the three Ss across the top of the model are describedas Hard Ss strategy, structure and system.

The 4Ss across the bottom of the modelskills, staff, style, shared value are less tangible, more cultural innature, and weretermed soft Ss by McKinsey. These are difficult to describe since capabilities,valuesand elements of corporate culture are continuously developing and changing.They are highly determined

by the people at work in organization.

The McKinseys 7-S model is widely discussed framework for viewing theinterrelationship ofstrategy formulation and implementation.

It helps to focus on managers attention on the importance of linking thechosen strategy to avariety of activities that can affect the implementation of thatstrategy.

Originally developed as a way of thinking more broadly about theproblems of organizing

effectively, the 7-S framework provides a tool for judging thestrategies.It is much more difficult to plan or

to influence the characteristics of thesoft elements. Although the soft factors are below the surface, they

can have a greatimpact of the hard structures, strategies and systems of the organization.


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1. STRUCTURE:

It is the part for specialization and co-ordination. It comprises of the basisorganization of the

company, its departments, reporting lines areas of expertise, andresponsibility (and how they inter-relate),

and the way in which the parts of a thingare arranged or organized

.a)Overall organizational structural detailsBoard of Directors/Functional headsetc.b)Sub structure detailing with each functional discipline. Detailed study of various departments&

their functions.

BOARD OF DIRECTORS

Mr. Atoll C. Kirloskar Chairman

Mr. R.V. Gumaste Managing Director

Mr. Sanjay C. Kirloskar Directors

Mr. A.R. Jimenez Directors

Mr. C.V. Ticker Directors


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Mr. S.N. Inamdar Directors

Mr. S.G. Chitnis Directors

Mr. A.N. Alawani Directors

The main theme of the organization structure is comprehend all the possibledimensions of theorganization structure as in developing the ability to focus onthese dimensions which are currently

important to the organizations evaluations -and to be ready to refocus as a crucial dimensions shift.


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THE ORGANIZATION STRUCTURE OF THE COMPANY AS FOLLOWS:

I. HRM & General Administration Department:

HRM & General Administration is everything to do with people recruitment,induction, training &

development, employee discipline & separation. Thisdepartment is taking care of employee from his

joining to separation. Departmentconsciously cares for each employee right from induction to his

performancerecognition.


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HRM and General Administration Department Structure:

The HRM Department here at the company considers the employees the bestforemost & major

resources of the company upliftment of employees growth are atthe center of an organization philosophyof growth. This aims at providing a career inwhich the individual can make the maximum contribution to

the organization andemployee standard of living.

Company has taken care of employees welfare by providing medical facilitiesand subsidized

canteen facilities to all employees. Free transportation, The KFILClub- Where all the employees and their

family members recreation activities arecarried out oftenly.

II. PURCHASE DEPARTMENT:

The main function of purchase department is to purchase raw material after concerning with the

production dept and storage dept of raw materials is madedepending on the demand of the pig iron in the

market and orders from the buyers.The main ingredients, which are prepared by the company, are asfollows.

A] Ores : This includes iron and manganese ore, which are brought from theHospet and Bellary

iron ore belt.

B] Fuels: which includes low ash metallurgical coke as low ash content inIndian coke there, coke

is imported from china and Japan fluxes are purchased fromthe Bagalakot and other nearby places theyare totally cost about 150 lacks per month.C]


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C] Others: consumable and spares, diesel furnaces oil etc these arepurchased at required time and

they cost about 50 lacks / per month [approximately]

III. STORES DEPARTMENT:

In the stores department the items are stored depending upon their time of utilization.A]

A] Slow moving : This includes the items which are used very slowly or veryrarely as per therequirements these includes such motors, insure spares capitalitems.

B] Non-moving : These items are purchased only at once these items arefixed up to the

liquidation of the company.

C] Fast moving : These items are regularly used and items are must bestored at regularly used

and items are must be stored a regularly intervals of timethese items stored under this category includes

raw materials, consumables spares,production consumable such as landing pipes hock mats, minimize and

reorderingquantity, mechanical spares such as oil seals bearing, drill bits etc.,

All the items, which are stored room, are consumed on the basis of FIFO theitems which are

stored are utilized first depending on their requirements the itemswhich are stored in stores are first

inspected and after inspection tag is attached tothat item.

IV. PRODUCTION DEPARTMENT:An innovative technology from KTS [KORF TECHNOLOGIA SIDERVRGICALTD] Brazil has

helped the company to design and develop a mini blast furnace toenable medium size entrepreneurs to

manufacture pig iron. Mini blast furnace hascome a long way and has enabled many entrepreneurs to

produce more than 500million tones of pig iron world over.

The company is among the first in India to adopt this state of the arttechnology with computer

controls to produce consistent quality of pig iron. Thecompany also boasts of a record of projects

completion of electing the first mini blastfurnace within 18 months and second mini blast furnace within

9 months.

Its has got uniform crystalline pearl tic structure it is slag free and made fromthe riches grade ofiron ore and imported coke. It is supplied to the company valuedcustomer of the engineering industry who

cater to automotive, tractor, textile, pumps,and spun pipe segments as well as the steel industry.

V. QUALITY ASSURANCE DEPARTMENT:The company is committed to achieve total customer satisfaction throughadoption of state of the

art manufacturing technologies and process with continuousimprovements. The company is also

committed to improve quality of work life of itsemployees through improved work practices.

Quality objectives:The following are the objectives of quality assurance department. They are asunder:

A] Customer Satisfaction: Maximization of customer satisfaction byconsistent supply ofquality casting and pig iron.

B] Supplies Quality Assurance:provide technical support and guidance toour suppliers through quality assurance programmers to ensure

highest quality of purchased materials suppliers it is a critical link in company quality system.

Quality System:To provide guidelines to establish, Document & maintain a quality a means toensure that product

conforms to requirements. To outline structure of documentationin quality system, Trade line document

the quality planning is done to meet therequirements of product.


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Methods:

A. Quality Assurance Manual (QAM):There is Top Ties document primarily conveying the Organizationscommitment to

quality & maximizing customer Satisfaction. This is maintainedcustomer satisfaction. MR.)

maintains this as a reference document during.Divisional produce & report procedure (HRM is

Training) for reference.B. Common Procedure (CPM) Manual:

This is second tier document prepared by MR. Issues these to all dept. headsfor common

procedure.

C. Departmental Procedure (DPM) Manual:This is also second tier document prepared by divisional Heads dealing how aJob is done

with responsibility Specified Department procedures of HRM & TRG areprepared by respective

department heads.

D. Work Instruction:This is third tier document primary to operate with specify work details thereare

generally issued by department or sectional heads & when required they aretranslated in

vernacular language (Kannada)

E. Forms/ Formats:Standard check seats supporting documents etc., these are primarilydesigned by

departments taking into consideration.Production control requirements and issued to users who

would be recordingthe status as a Monitoring sequence & this is used for verification & process

/product quality.

VI. SAFETY DEPARTMENT:Safety department is mainly concerned with the safety of employees and thesurrounding

environment.

Safety Function Chart


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3.Spheroidal Grade Pig Iron.

Pricing:The name Kirloskar itself is the mark of quality for the customer. Thecompany has left

the opinion of transporting Pig Iron to the Buyers site to the Buyer.So one can buy the Pig Iron at

the Companys Site or can order.

The company has come across different Prices terminologies.They are:

List Price Discount Allowance Payment Periods Credit Terms

List price is nothing but the selling price. It is also called as Basic Price

.

Basic Price = Production Cost + Profit

Production cost includes both variable cost and fixed cost.

If the transport is undertaken by the company then boarded price is calculatedaccording to sites

mentioned in receipt.Recorded Price = Basic + Freight + CED (Central Excise Duty)

A discount of Rs. 100/- PMT is given to the regular and bulk buyers.

Price of this company pig iron are comparatively more when compound tocompetitions, even

with this more price also the company has succeeded inreaching top market share holding position in the

Pig Iron market & Foundry. Peopleprefer this company Pig Iron because the following reasons:

a.High Qualityb.Fixed Chemical Composition

cTest Certificates are issued with every load

d.Almost 0% impurities & slag mix up

If customer demands for 2.25% silicon, Then the company will supply exactlywith this

proportion, where as others supply with range between i.e., 2.25% siliconetc.

In this company, Pig Iron is melted once, almost 98-99% pure molten metal isobtained while as in

it is 97% size is almost comfortable for feeding into less openingfirmness. The company brand name

helps in attracting customers. From the abovepoints is clear that the company is not using any mark

penetrating pricing strategy topenetrate the market instead it is using skimming price strategy.


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PromotionThe company has appointed number of dealers throughout India for itsmarketing purpose. Each

dealer will get Rs. 100 PMT, as commission for the pit ironis sells.Credit notes are given to these dealers

for their commission. Pig iron is alsosold on credit as one of the promotion tools to attract customers.

Credit timedepends on areas (less credit period is for North Zone) and order they give.

Distribution:

The company has got distribution network spread allover India in form of dealership and alsothrough companys employees, the company has divided itsmarket into 7 Zones:

VIII. FINANCE DEPARTMENT :

Finance departments will acts as major part of every industry. It is the basicnecessity of every

organization and these controls in flows and out flows of funds inan industry.

The finances department is treated as the one of the most significantdepartments. Finances are the

basic necessity to run each and every single activityof organization.

Finance Department Chart:


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IX. ENVIRONMENT CONTROL DEPARTMENT :

6 C + 5 S = Goals

To achieve the predetermined objectives, the company made anenvironmental friendly policy i.e.,6 C & 5 S model.

6C Models1.Cost effective waste management

2.Communication to interested parties

3.Control of pollution within prevailing norms

4.Compliance to legal requirements

5.Conservation of resources

6.Conduction training to all employees

5 S Models1.Seirisort (separate unwanted and waste)

2.Seitonstore (a place for every thing and everything in its place)

3.SeisoClean (to keep things shining)4.SeiketserMaintain (orderliness of things)5.ShitsukeStatuesque (training and discipline)


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2. SKILL :It consists of the capabilities and competencies that exist within the company.It is the talent, craft

or accomplishment, naturally acquired or developed throughtraining and abilities appropriate for a

specific job. The employees need to have bothspecific as well generic skills. Generic skills mean problem

solving skills, decision-making skills, communication etc. Specific skill like time management, shopfloor management, building teams, leadership and motivation, creativity, advances safetyand

environment, industrial safety and environment.

Training:The company being a young company with the history of 11 years is set todevelop a full-

fledged training department. The training to an employee shall be of three types. They are:

a)On the job training by concerned supervision.

b)Off the job training.

c)For training program most of the engineers, officers are sent tovarious institutions

where training programs are conducted time totime as per thetraining needs identified by

the concerned department head looks after the training.

Training process of the company:1. Identification of training needs

2. Selection of trainees

3. Training Budget4. Selection of trainers

5. Training Calendar

6. Conducting the training program

7. Feedback from participants

3. STYLE:

This includes the Leadership style of top management and the overalloperating style of the

organization. Style impacts the norms people follow and howthey work and interact with each other andwith customer.

The management training is totally democratic there are no restrictions to anyemployee to express

his opinion. The company has got open door policy i.e. anylevel of employee can meet directly to his

superior or managing director with out anyhesitation

Strategy refers to the systematic action and allocation of resources to achievethe companies aim.

The integrated vision and direction of the company as well asthe manner, in which it drives, articulate,

communicates and implements that visionand direction. It can also be defined as the choice of direction

and action that thecompany adopts to achieve its objectives in a competitive situation.

4. SYSTEM:

Systems are formal and informal procedures that govern everyday activity,covering everythingfrom management information systems, through to the point of contact with the customer. Finance

department is doing enough to properly plan andcontrol the funds. There is regular program verification.

In the company is followed purely on basis of merit basis. Promotion will begiven on the basis of

pure merit system.

The company follows inventory control system,

Raw materials will be held in the stores for 15 days only.


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Finished goods will be held in the stores for 2 days.

Training System:

The following factors are considered for training:1)Strategic plans of the organization and meet operational areas asestimated by the top

management.

2)Training requirements as projected by the departmental heads andindividual

employees.

3)Reporting officer remarks in performance appraisal reports.

4)Refresher training requirements in critical area.

5)Career planning and succession planning inputs.

6)Inputs required by new entrants.

7)Training arising out of promotions and transfer

Various training programs conducted for the supervisors in the company areas follows:

- Decision making skill

- Managerial skill- Computer

- Kaizan principals

Various training programs conducted for the operators. They are as follows:

1)Operative Training:

2)Safety, first aid and fire fighting

5. STAFF:It refers to the people working in an organization. The companys peopleresources and how they

are developed, trained and motivated. The process of staffing includes various processes like recruitment

and selection procedures,training etc. It refers to how the people are developed, trained, socialized,

integrated,motivated and how the employees career is shaped in an organization.

Technical Staff:These are the staffs they are responsible for the work related to technicalaspect. In this

company they are appointing well-qualified and experienced personsas technical staff. So these

staff will have good knowledge about the workingenvironment.

Supervisory Staff:These are the person who is in charge with supervising the other employeesin the

organization. In this company they are employing experienced staff assupervisor. So they can

observe the fellow workers and guide them as per thecompanies need. The experienced

supervisors are one of the key assets of thiscompany.

Clerical Staff:These assets are responsible for the office work. These people are thebackbone of the

company. If they work well, it will be an asset to the company. In thiscompany they are employedwill & qualified employees for office work. These staffsare working together for achieving

companies objectives.


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Man Power:

6.. STRATEGY:Strategy refers to the systematic action and allocation of resources to achievethe

companies aim. The integrated vision and direction of the company as well asthe manner, in

which it drives, articulate, communicates and implements that visionand direction. It can also be

defined as the choice of direction and action that thecompany adopts to achieve its objectives in a

competitive situation.

Waste Control Strategy:In order to survive in the market company follows waste control strategy.

The company maintains all the materials in a systematic & in a scientific way,the best

example is, company generates electricity by making use of the waste gasi.e. CO2produced during the production process.

Pricing Of Kirloskar:The name Kirloskar itselfis the mark of quality for the customer. Thecompany has left

the opinion of transporting Pig Iron to the Buyers site to the Buyer.So, one can buy the Pig

opinion of transporting Pig Iron to the Buyers site to theBuyer. So one can buy the Pig Iron at thecompany Site or can order.

The company has across different Price terminologies/ Price Strategies. Theyare as

follows:

1)List Price

2)Discount

3)Payment periods

4)Credit Terms


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5)Seasonal Pricing

6)Area wise pricing

7)Pricing on demand

List price is nothing but the selling price. It is also called as Basic Price.

Basic Price = Production + Profit

Production cost includes both variable cost and fixed cost.If the transport is undertaken by the company then boarded price is calculatedaccording to sites

mentioned in receipt.

Recorded Price = Basic Price + Freight + CED (Central Excise Duty)

A discount of Rs. 100/- PMT is given to the regular and bulk buyers

Price of the companys pig iron has succeeded in reaching top market shareholdingposition in the Pig Iron market & Foundry. People prefer their company PigIron because of the

following reasons:

High Quality Fixed Chemical Composition Test Certificates are issued with every load Almost 0% impurities & slag mix up

If customer demands for 2.25% silicon then the company will supply exactlywith this

proportion, where as others supply with range between i.e., 2.225% siliconetc., Pig Iron is melted

once, almost 98-99% pure molten metal is obtained while asin it is 97% size is almost

comfortable for feeding into less opening furnaces. Thecompany is not using any mark

penetrating pricing strategy to penetrate the marketinstead it is using skimming price strategy.

7. SHARED VALUES:

It refers to the core or fundamental values that are widely shared in theorganization and serve as

guiding principle that are important. These values havegreat meaning because they focus attention and

provide a broader sense of purpose.

Values are things that you would strive for even if they were demonstrably notprofitable. Values

act as an organizations conscience, providing guidance in time ofcrisis.The values and beliefs of thecompany ultimately they guide employeestowards valued behavior. It refers to the simple goal statements

in determiningcorporate destiny to fit the concept; most people in an organization must share thesevalues.

As per the value of the company Lets make everyones life, an enriched onethe company hasimplemented many techniques to see that this values areimplemented.

The company tries to satisfy every which is dependent directly or indirectlywith it. The company has sponsored many schools and colleges through the truststarted by. The company tries to satisfy employees, shareholders, customers,government, families of

employee, community.


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PARTC

SWOT ANALYSISSTRENGTHS:

The company has some its own strengths and competencies. They areas under:

Good brand image in the market Market leader in quality Delivery to customer as per schedule Nearer to iron source Well trained and flexible manpower Good dealership network and area officer Base load with institutional customer Low power cost in manufacturing Near to the transportationrailways as well as road transportation Quality is established presence in all market eastern zones,reasonable

transportation facilities available for all area 25% of production is tied up

with institutional customer.

WEAKNESS:

Every one should have its own weaknesses like this company also has someweaknesses.

They are:

Transportation problem during harvest season Inconsistency in appearance Already at peak utilization of current capacity Weakness core expertise on prevention maintenance Total dependence on imported Coke High coke consumption due to higher fines and handing costs due tomultiplehandling Higher basic coke consumption due tousle of metallic blast preheated inplace

of stove.


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OPPORTUNITIES:The company has some opportunities in future for its growth. They arementioned as

under:

The company has a good share in the market. The company has opportunities to tie up with customers. Can capitalize an upswing in market demand because of all Indiapresence Possible tie-ups with major foundries in Gujarat market. As the company good market edge, it can market 20000 per month of foundry

grade pig iron every month.

Can capitalize on up swings in market demand because of all Indiapresence.THREATS:

The company has some threats by competitors, market environment andsome legal &political changes. They are mentioned as under:

New foundry grade production entry Increase price in coke New constricts in market Imposition of sales tax and VAT. Threats of using substitute products like plastic and fiber. Non exclusively with dealers

Kirloskar Project

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