Sample Ost Report

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Organization Structure

Training

ON

BINANI CEMENT

By :

Mayank Agarwal

MBA B 1220125


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ACKNOWLEDGEMENT

On completing this project it is my pleasure to thank and extend my heartfelt gratitude to the

following people who made the completion of this project possible:

My mentor Mr.Sudhindra.S for his vital encouragement and support.

Mr. Magan Agarwal (AVP.), Binani Cement Pvt Ltd., for his invaluable contribution and

support and all the employees who helped me in this project.

At last but not the least I would like to thank Christ University Institute of Management,

Bangalore for giving me the opportunity to learn and explore various fields.

MAYANK AGARWAL


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OBJECTIVE OF THE STUDY

I underwent an organizational study training (OST) at Binani Cement Pvt. Ltd. to acquaint

myself with the business environment for a month of 1 month , as a part of MBA curriculum

at Christ University. The study was conducted to understand the structure, function and

process of various departments and their interdependencies. During the course of the study I

was able to successfully interact with the employees of the organization.


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Contents

History

Product Profile

Mission/ Objectives / Strategies

Organization Structure

Policies & Procedures

Functions of various departments

SWOT Analysis

Key result areas & Activities

Organisational design factor & approach

Significant Factors for Success

Product Promotional Measures

Training Measures

System followed for purchase of Raw Material

HRD measures

Recommendations

b


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History

Binani Industries Limited (BIL) is all set for growth. From the time of its inception, BIL

has been an ambitious organisation and this attribute has helped it grow at a fast pace.

The BrajBinani Group traces its beginning to 1872, when Seth PragdasBinani, a trader in

metal utensils, began an enterprise with his son Seth Mathuradas to engage in the import

and export of metals. The enterprise continued to grow from strength to strength. The year

1941 marked an important phase in the evolution when Seth Mathuradas' son Seth

Govardhandas made a bold, but significant, move from trading to manufacturing.

Binani Metal Works got rolling with a plant at Howrah. Taking on the mantle from his

father, it was during the reign of son GhanshyamBinani, that Binani Zinc was born.

Leading from the front, the Company shifted its focus towards R&D thus modernising and

expanding its capacity. But it was with the advent of Mr.BrajBinani and his dynamic

leadership that the Company truly began to prosper and exploring uncharted horizons.

Following the restructuring of the BrajBinani Group, from 1996-2004,Binani Industries

Limited (BIL) was founded to serve as the holding Company for Binani Cement Limited,

Binani Zinc Limited, Goa Glass Fibre Limited & BT Composites Limited. Today, the

BrajBinani Group is a multidimensional business conglomerate, with an asset value of Rs.

1968 crores, a turnover of Rs. 2302 crores and a 1750-strong work force. And with a clear

focus to adapt and execute the best, the BrajBinani Group has not only attained major

internationally accepted certifications for its various ventures, but also has extended its

reach well beyond Indian borders - to UAE, China and is in the process of expanding into

Africa and other countries.

BIL owes most of its success to its simple yet potent philosophy - honesty, transparency,

efficiency and its unflinching commitment to the customers, coupled with an inherent

determination to succeed. It is this vision that has dissolved all boundaries and has set BIL

on the never-ending path of growth and evolution.


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Profiles of the product

BIL's epic story has been a unique compilation of the success stories of its four subsidiary

companies- Binani Cement Limited, Binani Zinc Limited, Goa Glass Fibre Limited and BT

Composites Limited. It is moving ahead full stream in the direction of development and these

companies have indeed formed the pillars of strength of the BrajBinani Group.

NOW TALKING ABOUT THE BINANI CEMENT

PROFILE OF BINANIS CEMENT PRODUCTS

It consistently produces excellent quality cement having low alkali, negligible chloride, and

low heat of hydration. It produces following types of cement.

Sr.No

Type of Cement Grade IS Code specification

1 Ordinary Portland Cement 43,53

IS 8112:1989

IS 12269:1987

2 Portland Pozolana Cement IS 1489 : Part I :1991


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MISSIONS, OBJECTIVES AND STRATEGIES OFORGANISATION

Mission

1) To achieve leadership status in the core sector, across

2) To employ frontline technologies to meet the highest global standards in products and sere

3) The set benchmarks in manufacturing, while adhering to the most stringent environmentalrules.

4) To be a customer-first, quality obsessed, socially sensitive corporate entity

5) To achieve breakthroughs in manufacturing based in intensive R&D coupled with

innovative thinking

6) To assure the well-being of our people, living by such values as concern, empathy and

commitment

OBJECTIVES

1) To provide best quality cement in required quantity to the customers.

2) To enhance the share holder values in the company by making profits.

3)To satisfy the internal and external customers.


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ORGANIZATION DESIGN AND STRUCTURE


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i)ORGANISATION HIERARCHY

Management Committee

members(Works manager)

Assistant VP/GM/Dy GM

Senior Manager/ Manager/

Dy Manager

Senior Engg/ Engg, Senior

Officer/ Officer

Work Men- Grade 1,2,3,4


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ii)STRUCTURE OF COMMERCIAL DEPARTEMENT


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POLICIES AND PROCEDURES FOLLOWED

Binani Industries Limited (the Company) is committed to conducting its business in

accordance with applicable laws, rules and regulations and the highest standards of business

ethics and ethical conduct.

This Code of Conduct (Code) reflects the business practice and principles of behaviour that

support this commitment. The Board of Directors (the Board) is responsible for setting the

standards of conduct contained in the Code and for updating these standards as appropriate to

reflect legal and regulatory developments. The Code is intended to provide guidance and help

in recognizing and dealing with ethical issues and to help foster a culture of honesty and

accountability.

SOME OF THE POLICIES ARE:

(i) Represent the interests of the shareholders of the Company;

(ii) Exhibit high standards of integrity, commitment and independence of thought and

judgement;

(iii) Dedicate adequate time, energy and attention to ensure the diligent performance ofhis/her duties including make all reasonable efforts to attend Board or committeemeetings; and

(iv) Comply with every provision of this Code.

(v) In marketing our products ,we deal with cash only .

(vi) We maintain a Transparent policy for all our customers .

(vii) We deal fairly with the Companys customers, suppliers, competitors, officers andemployees.


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FUNCTIONS OF VARIOUS DEPARTEMENTS

1) HR &OHS DepartmentThe HR &OHS Department of Binani Cement has two main functions- Human Relation

Management and Occupational Health Service.

The major functions of the HR department in Binani Cement are divided into:

Industrial Relation:- Industrial Relation deals with trade union management, contract

labour management, compliance with statutory requirements etc. If a worker has a problem,

he has to first give a complaint to the trade union leader. If the problem is not settled there, he

can move to the next level i.e. concerned department head and then to the HR Manager,

Labour Court and finally the Supreme Court of India.

Recruitment, Training, Appraisal :- For a new vacancy in the company the first

preference goes to the company employees. Through internal notification the eligible

employees are given a chance for writing the promotion test, or internal transfer. Promotion

of internal staff will be based on performance. If there are no eligible candidates inside, then

the company goes for recruitment from outside

Welfare:- All statutory functions according to the Factory Act like canteen, rest rooms,

drinking water, health centre etc are provided. Apart from these employees are provided with

uniform, footwear, umbrella, soap, towel, shoes, transportation etc are provided by the

company. Recreation room is equipped with various indoor games like table tennis, chess etc.

Various cultural events are held. Festivals like Diwali are celebrated where various

competitions for the staff and children are held.

Safety: The main objective of the department is to ensure safety activities and ensuring

statutory compliance, development of safety systems and implementation, taking care of the

housekeeping activities, ensuring conformance to safety regulations, accident Investigation

Analysis and remedial measures etc.


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2) COMMERCIAL DEPARTMENT/ MARKETING

PURCHASE

All the purchases in the company has to move through the purchase department be it raw

materials or spare parts. A purchase requisition form is generated for each purchase.In case

the amount and cost associated with the material is large, the purchase department invites

quotation from the suppliers by publishing the requirement in the newspaper. After

negotiations, the supplier who agrees to provide the material at minimum cost is given the

contract. Most of the materials are insured through the New India Assuarance Company.

PROMOTION

Promotion of the product does not only take place through media or by any other means. But

Promotion of products in Binani CEMENT takes place verbally through customers. A

potential customer can tell his friends and acquaintance about the quality product that they

get from Binani CEMENT.

Its interesting to know that BINANI CEMENT is promoted by AMITABH BACHHAN

SALES:

Sales are done through various channels. These channels include Sales through dealers,

distributers, direct selling and indirect selling. BINANI CEMENT deals only in cash no

credit is accepted. Sales are also carried out through sales agents. Both the company and the

agents keep in constant touch with the customers. Customer feedback is collected every year

towards the end of March and it is processed by June. The purpose of this is to improve thequality of customer service by 2% and to reduce the complaints by 5% annually. The

company has been successful in achieving its objectives and the customers are happy with the

quality of products, services and handling of customer complaints.


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3) INSTRUMENTATION DEPARTMENT

Instrumentation maintenance of the plant

Preventive Maintenance

Reactive Maintenance

Modification/Improvement aspects

(Minor)(Major improvements/modifications done by Maintenance Dept)

Indigenization of imported instruments

Finding substitutes by developing similar models

Reduction in cost factor,

General Administration

Automation (Part of maintenance)

Budget Preparation (for management systems)

Log Report (Log report, done manually on a daily basis)

4)FINANCE DEPARTMENT

The companys finance department was computerized in 1983. The major functions of the

department are:

Purchase bill accounting: All the payments related to purchase are dealt here. It makes use of

computerized cheque leafs issued from the bank to make payments to the suppliers, agents

etc.

Sales accounting: Agents accounts related to stationary, printing, transportation etc are

maintained here.

Stores accounting: It deals with the reception, issue and storage of materials.

Raw material accounting: The raw material imported from various places comes by ship tothe port. The material is unloaded using barges to a space that is rented by the company for

temporary storage of the material. The charges for the whole activity include the cost of the

material which is based on dispatch money, customs duty, handling charges at the dock plus

the rent to the port.

HRD Package: The main purpose is to take care of the salary payment to the employees. It

makes use of a payroll package in association with the HRD.

Corporate office setup: It takes care of the cash and bank operations and the statutory


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remittances like the sales tax, income tax, ESI, PF etc.

Auditing: Auditing includes Annual Financial audit, Income Tax audit, Cost audit, Sales Tax

audit. Each serves different purposes. It is done from professionals outside the company but

monitored by the finance department. Internal audit is done on contract basis. Finance

department helps them in giving the necessary information and data.

Budgeting: Budget allocation starts with the marketing department. The marketing

department estimates the sales for a particular year. Based on that the budgets of the other

departments are allocated as of how much raw material is to be purchased, how much should

be spent on maintenance research etc. About 60% of the total cost is allotted to raw material,

20% to electricity and 20% to labour and administer


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5)RESEARCH $ DEVELOPMENT DEPARTMENT

Research & Development has three sections:

1. Development Section: This sections deals with projects for process modifications and

improvements and trouble shooting. There is no fundamental research going on in this

department. Only research related to process improvement are carried out here. Another

major function is the evaluation of raw materials, and its inspection for suitability in process.

2. Assay Section(Quality Control Section) : This section deals with the analysis of raw

materials, finished products etc. Analysis has two main objectives-commercial payment and

analysis for process.

3. Environmental Section: This section deals with the environmental aspects like getting

approval from the pollution control board, inspections, analysis, monitoring and reporting to

pollution control board.


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SWOT ANALYSIS

Identification of the threats and opportunities in the environment and the strengths and

weakness of the firm are the factors which determine the course of action to ensure growth

of the firm.

STRENGTHS

Binani CEMENT has always been in the forefront of the technical up gradation to match the

industry standards and has emerged as the NO.1 in terms of customer delight with

unwavering commitments and focus on quality.

Dedicated and recognized in-house R&D cell has provided necessary technical support

right from the basic engineering to the quest for operational excellence.The competent managerial staff and workers in the company help in the smooth

functioning of the company.

First to install high productivity energy saving jumbo cell house technology.

WEAKNESS

Small unit compared to world standards.

The other weakness can be that BINANI cement deals only in cash, so in cases it loses itspotential customers sometimes.

OPPORTUNITIES

Strong customer base and brand image in market.

The company has diversified into cement manufacturing in north India and a glass factory in

Goa as independent groups. Hence there is much scope for product diversification .

THREATS

Competition from JK cement and Ultratech Cement.

Proposed steep hike in power tarrif in state.

Non Availability of concentrate.

Reduction in import duty.


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Keys Result Areas(KRAs) Of The Organization

1) To utilize the full capacity of plants.

2) To create strong brand equity in the market

3) To enhance the profit of the organization in the market.

4) To explore the overseas possibility for setting of new plants.

5) To satisfy its potential customers.

Key Result Activities

1) To employ efficient people in the organization so that they can be the pillars in the

organization growth.

2) To promote the brand in an effective and efficient manner. For example :

endorsement of AMITABH.

3) To get the premium price in the market.

4) To ensure that the quality of the product is supreme in its price range.


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Organisation design factors and approaches

For a organisation to work properly it is very important that it has a proper organization

structure. A good structure can ensure organisation growth whereas a bad structure or design

can lead to its downfall.

Some of the design factors and approaches of binani cement are :

Best quality products : by using the best quality products we ensure that our customers are

fully satisfied.

Ontime delivery : for company growth it is very important that it delivers the manufactured

products on time as committed.

Rational pricing : by rational pricing we mean the best price possible for both company and

customer.

Transparent policy : We use same and transparent policies for all our customers ie our

policies does not change with customer to customer.

Profitability to dealers/retailers : it is very important that dealers/retailers are profited and

promoted to sell our products because they are the only persons who deals with customers

directly, so without profiting them organization cannot think of its profit.


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Organisation Structure Factors

ORGANISATION STRUCTURE

The organisation must have a proper hierarchical structure so that each person is aware of

his own responsibilities in the organisation. The structure should be so transparent that

every person knows the responsibility of his immediate head and tail.


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Significant factors for success

The core strategy is based on consolidation and sustainable growth. The investment strategyof the company aims at becoming a low cost producer in all its business and in upgrading

technology to meet stringent product quality requirements. Quality is the manthra of the

organization.

Ever since its inception it has been in the forefront of providing quality products and services

to its customers with equal emphasis on environmental pollution control and energy

conservation. It maintains commendable grade of quality in all levels of its operation and

high level of its productivity by adaptation of state of art technology. The customer centric

manufacturing and satisfaction are the main forte of the quality management satisfaction.

The company interact with its customers to continuously asses their needs and

expectations and ensure total customer satisfaction by maintaining consistent quality of its

products and services with the involvement of its employees.

The company promote transparency and openness in its relationship with its employees and

the community and treat them in a fair and respectful manner


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Product Promotional Measures

Binani is one such player who has taken up branding in a serious manner. The brand is

relying on the celebrity power to build its equity. Binani Cement used the cricketing master

Sunil Gavaskar to promote its brand during the launch phase in 1997. After a long period of

silence, the brand began to invest heavily in brand promotion from 2007.

The brand chose the ever green Amitabh Bachchan as the brand ambassador in 2007. There

was lot of buzz during the time big B was chosen to endorse a cement brand.

Binani Cement started using Big B in the television commercials in a dignified manner. This

is one of those brands that tried to make use of Bachchan's charisma to the brand's advantage.

The ads were laden with subtle humor and according to the reports, Binani cement's sales

surged during these campaigns.

The brand did a smart move by taking advantage of the fact that both the brand and the brand

ambassador name starts with B. The cement brand began to call itself Big B. While the brand

gains by the association, there were many critics who argued that now Big B will be

associated with cement rather than celebrity.

Binani cement has the tagline " Sadiyon Ke liye" which means " for centuries ".

Although the ads featuring Bachchan was well made, I felt that it lacked a punch. The brand

lacked a powerful message .


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Training Measures

The Company follows different training schemes for different category of employees.

Management Training Programs: Management staffs are given one year training after

which they enter probation for the next six months. During the training program, they are

given a stipend of Rs.7000 per month. After the probation they are absorbed into the

respective department.

Workman Training: The workmen are given a training for 2 years in which they are given

a stipend of Rs.2000 per month the first year and Rs.3000 the second year. After the

probation, are absorbed into the respective departments.

Apprenticeship training: The Company facilitates apprenticeship training for one year as

per the Apprenticeship Act. It is categorized into three different types- Graduates,

Technicians and trade Apprentice. Graduates get a stipend of Rs.1930, Technicians who are

Diploma holders get a stipend of Rs.1400 and Trade apprentice (ITI holders) get a stipend of

Rs.800.

Paid Trainees:As a welfare function, children of employees holding professional degree

are given training in the company with a stipend of Rs.1500. But it is not necessary to absorb

these candidates into the company.

Unpaid Trainees: Diploma holders are given training, but they are not paid any stipend. At

the end of the training program a company certificate is issued.

Cross Functional Exchange Program:This facility is also for the management staff to

get familiarize with the departments apart from the department in which he works. It is a 4

month training program. It is intended to enhance multiple working skills in a person.

Knowledge and Skill Up gradation Program: This is a program in which high grade

employees belonging to the non-management staff are trained and promoted to lower level

management staff.


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System Followed for Purchase Of Materials

First the respective department employee generates a query regarding itsrequirement. This query is then sent to the Respective head of the department.

If the query is been accepted by the head , then the query is forwarded to the

Purchase department. Now the purchase department asks for the quote and

when the quote is finalised then the purchase is done. And when the purchase is

done it is then transferred to the respected department.


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HRD Measures

Welfare: All statutory functions according to the Factory Act like canteen, rest rooms,drinking water, health centre etc are provided. Apart from these employees are provided with

uniform, footwear, umbrella, soap, towel, shoes, transportation etc are provided by the

company. Recreation room is equipped with various indoor games like table tennis, chess etc.

Various cultural events are held. Festivals like Diwali are celebrated where various

competitions for the staff and children are held.

Employee Motivation:To motivate the employees Best Performance Award is given to

the best employee. Health Center: Specialist Medical Camp is held every month where free

consultation is provided for the employees, their family and local residents. A compulsory

medical checkup for all the employees is held annually.

Safety: The main objective of the department is to ensure safety activities and ensuring

statutory compliance, development of safety systems and implementation, taking care of the

housekeeping activities, ensuring conformance to safety regulations, accident Investigation

Analysis and remedial measures etc.


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Performance Appraisal

The main objective of the appraisal is to identify if employees need any further training,identify the eligible people for promotions and salary increment. In case of trainees under

probation, monthly assessment is done where the quality and quantity of work, attendance,

relationship with the other employees etc are assessed. In case of permanent employees a

closed appraisal system is adopted where only the respective department head and the HR

department is present.


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Binani cement uses 360 degree appraisal system

The highlights of this type of system are:

360 degree feedback is the most comprehensive and costly type of appraisal. It includes self

ratings, peer review, and upward assessments; feedback is sought from everyone. It gives

people a chance to know how they are seen by others; to see their skills and style; and may

improve communications between people.

360 degree feedback helps by bringing out every aspect of an employee's life. Cooperation

with people outside their department, helpfulness towards customers and vendors, etc. may

not be rewarded by other types of appraisal. This system also helps those who have conflicts

with their manager.

360 degree feedback generally has high employee involvement and credibility; may have the

strongest impact on behaviour and performance; and may greatly increase communication

and shared goals. It provides people with a good all-around perspective.


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Some suggestions Given by me To the Organization

1)To start the advertisement campaign again.

2)They have large market share in North they should expand it to other parts also.

3)Explore more overseas market.

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