INTRODUCTION

The MBA course offered by the Kannur University, Kerala, has its own unique syllabus which requires its MBA students to undertake an internship with any of the leading business houses for a period of one month during the Third semester. For the purpose of acquiring practical knowledge of the working and functioning of a company, Kannur University has incorporated an in plant training into its Business Management schedule. This in plant training shows us how the different departments in an organization work and wins as a single unit. For the same I choose an organizational study in Kerala Electrical and Allied Engineering Company Ltd. Mamala. 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 study is mainly focused on the organizational structure and functions of different departments of KEL and the overall organizational climate of KEL management. Management is a critical function in any business that is responsible for the utilization of resources through proper planning, directing and supervision. Training and learning in a class room will make an individual knowledgeable in theory of the various functions of a company. But a person comes out from class room and visits various industries, in this situation he can learn more from them. In such a situation real experience in the practical functioning and operations of a company can be of very much use to the students of management studies.

INDUSTRY PROFILE
Heavy Electrical Industry covers power generation, transmission, distribution and utilization equipments. These include turbo generators, boilers, various types of turbines, transformers, switchgears and other allied items. Majority of the products manufactured by heavy electrical industry in the country, which includes items like transformers, switchgears etc. are used by all sectors of the Indian economy. Some major areas where these are used are the multi core projects for power generation including nuclear power stations, petrochemical complexes, chemical plants, integrated steel plants, non-ferrous metal units, etc. A transformer is a device that transfers electrical energy from one circuit to another through a shared magnetic field. A changing current in the first circuit (the primary) creates a changing magnetic field; in turn, this magnetic field induces a voltage in the second circuit (the secondary). By adding a load to the secondary circuit, one can make current flow in the transformer, thus transferring energy from one circuit to the other. The secondary induced voltage is scaled from the primary by a factor ideally equal to the ratio of the number of turns of wire in their respective windings. A key application of transformers is to reduce the current before transmitting electrical energy over long distances through wires. By transforming electrical power to a highvoltage, low current form for transmission and back again afterwards, the transformer allows electricity to be transmitted more efficiently, enabling the economic transmission of power over long distances. Consequently, transformers have shaped the electricity supply industry, permitting generation to be located remotely from points of demand. All but a fraction of the worlds electrical power has passed through a series of transformers by the time it reaches the consumer. Transformer are some of the most efficient electrical machines, with some large units able to transfer 99.75 % of their input power to their output. Transformers come in arrange of sizes from a thumbnail-sized coupling transformer hidden inside a stage microphone to huge giga volt-ampere-rated units used to interconnect portions of national power grids. All operate with the same basic principles, though a variety of designs exist to perform specialized roles throughout home and industry.

Transformer industry in global A transformer is a voltage changer. The transformer industry is usually divided into distribution transformers, power transformers and other types of special transformers for welding, traction, furnace etc. The power transformers are used to transform power voltage from the generation point to the transmission point. A distribution transformer issued to transform power voltage from transmission point to distribution of power to the end user. The health of the transformer industry is closely related to the power generation sector. Productivity in the transformer industry increased industry increased at an average annual rate of 2,4 percent from 1963 to 1979 about the same as the 2.5 percent-rate shown by all manufacturing establishments. The growth in productivity in the transformer industry was the result of output gains averaging 3.7 percent and advances in employee-hours, averaging 1.3 percent. This growth occurred because of many factors, most importantly the change to a straight-line production process incorporating assembly line techniques because of the expanding use of computers. Another reason for the rise in productivity was a rapid increase in capital expenditures per employee in the mid 1960. These purchases of new plant and The long term equipment, coupled with output growth, produced operating efficiencies.

productivity trend can be broken into two distinct periods; from 1963 to 1972, productivity increased an average of 3.8 percent from 1972. As productivity grew in the transformer industry from 1963 to 1972, output per employee-hour for all manufacturing increased too, but at only a 2.3 percentage. Output in the industry showed gains averaging 7.7 percent annually; but employees-hours advanced only 3.7 %. Short term changes in productivity are frequently linked to changes in output levels. Very large increases in transformer industry output occurred in 1964 (13.7 %) and 1965 (18 %). These jumps in output were associated with large gains in productivity, 8.6 and 9 percent. Output rose every year during 1963-72, and productivity fell only twice. There were several reasons for this rapid output growth. Demand from electric utilities grew because they were making extensive additions to their generating capacities, requiring more transformers. Power companies, also increasing demand for transformers. Installed generating capacity in the United States increased 83 percent between 1963 and 1972; and additions to this capacity raised an average of 9.3 percent a year. Overall economic growth aided transformer markets during this period. For example, distribution transformers were 3

increasingly needed, as new electrical lines were extended into undeveloped neighborhoods permits for housing were issued at a rate of 4.8 percent annually from 1963 to 1972. Transformer industry in India 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, the Indian government decided to bring all new power generation, transmission and distribution in rural and urban centres ( which were not served by private utilities) under the purview of State and Central government agencies. Accordingly, State Electricity Boards (SEBs) were formed in all states. The Central Government has been giving priority to this sector while fixing plan outlays. Commencing with fifth plan (1974-79), the government increased its direct role in the generation and bulk transmission of power to supplement the efforts of the states. This was done by establishing large power projects, as part of public sector units (PSUs) to develop the coal and hydroelectric resources in the country. Today, the plus and SEBs have been responsible for establishing networks covering the entire length and breadth of the country. India has been increased its installed power capacity from 1362MW at independence to cover 100,000MW and electrification of more than 500,000 villages. However, it is a matter of concern that the annual per capita consumption of India, at about 350kWh is among the lowest in the world. The Government of India has thus launched the Power for all by 2012 program which targets adding about 100,000 MW of power generation capacity by 2012. The total transformer capacity in India stood at about 759,240 MVA at the end of 2003-04. Of these, the step-up and step-down transformers together account for 73%. The remaining 27% are distribution transformers at the 33kV and 11/22kV capacity levels. The 11kV transformer capacity is close to double that of 33kV capacity level. The health of the transformer industry is closely related to the power generation sector. The major consumers for transformers are the SEBs, utilities and industries. The transformer industry in India has evolved and now has a well matured technology base up to 800KV class. 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 transformer 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 transmission and distribution system today consists of 400KV networks that support state transmission systems; 66Kv, 33kV and 22kV networks that act as sub-transmission systems; 1 kV networks that provide the primary distribution systems and 400/230 V networks for local distribution. At the transition between themselves, transformers are required to ensure a smooth change of voltages with minimum loss of energy. Major players in India The transformer market in India is largely unorganized with very few organized players. The key organized players in this segment are ABB BHEL BHARATH BIJLEE EMCO VIJAY ELECTRICALS CROMPTON CREAVERS AREVA T AND D INDIA INDO TECH TRANSFORMERS VOLTAMP TRANSFORMERS LIMITED

Transformer industry in Kerala The health of the transformer industry in Kerala is closely related to its power generation sector. Transformer industry in Kerala has evolved and now has a well matured technology base upto 800 kV class. Electricity is required for both development of industries and for the increasing standard of living. Modern industries are huge consumers of electricity 5

and nowadays the homely consumption of electricity also increases.

Thereby need for

transformers serve as a booster in the supply of electricity given the government focus on providing electricity to rural areas, the power distribution system has been extended to reach remote villages. The impending changes in the sector would have varying impact on various power equipment manufacturers namely T and D equipment suppliers and generation equipment suppliers. Also, with the thrust on quality there exist possibilities for demand to shift from unorganized to organized players. Transformers usually have a life of 20-30 years. Hence, those transformers which were installed during 1970s/1980s are likely to be replaced in the next few years. The total transformer capacity in Kerala stood at about 759,240 MVA at the end of 2003-04. It has been increased after that.

Major players in Kerala INTRANS, ERNAKULAM TELK, ANGAMALI.

COMPANY PROFILE

Public enterprises today occupy an important role in the economies of developing countries in a mixed economy ideally. Both the private sector and the public sector should formally go one another and operate as integral parts of one and the same organism to optimize growth. The state intervention of an active kind has become a cardinal feature of the Indian economy since the mid 1950s. The Government committed itself to the development planning and target oriented growth with regard to industrialization and social welfare. In the process of economic development, Indian planners have accorded high priority to the development of certain basic and heavy industries. To achieve this target, the state has taken the direct responsibility of establishing and operating such industries. The public sector thus forms a strong industrial base of our country. Kerala is one of the smallest states in India with a high density of population . The limited area available for the production of food grains and overwhelming population makes it difficult for the state to be self sufficient in meeting the food requirements of the people. The solution of these problems lies in intensive agriculture and rapid industrialization. The Government realized the need for creating more and more employment opportunities through

planned industrialization in pursuance of this policy Government started industries in the public sector. Public Sector Undertaking in Kerala comprises of 72 units which includes 10 chemical, 5 Electrical Equipment ,5 Ceramics and Refractoriness, 9 Engineers ,10 Textiles ,10 Electronics ,5 Agro and Wood Based ,5 Development and Infrastructure and 13 Traditional and Welfare Industries under the administrative control of industries department. Along the electrical equipment under the Department of Industries in Kerala KEL made an amazing turn around during the year 2006-2007.The half yearly results for this financial year shows that the Public Sector Undertaking including (KEL) have continued to register the industry on growth. The Kerala Electrical And Allied Engineering Company Limited was established in 1964 in the State of Kerala, India. It is fully owned by the State government .the company has progressively expanded its range of manufactured goods and services over the years and has strategically broadened its customer base on a global scale.KEL offers to its customers world wide a comprehensive array of goods and services through its various manufacturing units and service division. With a manpower base of 1200 which includes 250 highly qualified and well trained professional Engineers, KEL is one of the biggest public sector companies in the state. KEL has a vital share in manufacturing the distribution transformers in the market since 1964 .All the manufacturing units of KEL has ISO 9001: 2000 standards. Electricity is considered to be an inevitable factor in the modern world .Kerala faces a huge power crisis. The main cause for this is the production cost , loss of transmission etc. With the loss of transmission people face low voltage problems. Thus , the distribution transformer helps to improve the voltage capacities in electicity distribution. The KEL produces these distribution transformers for various electricity board all over India.KEL has 78% market in Kerala alone.KEL facilitates the modern technology for producing quality transformers with foreign collaboration. Kerala Electrical and Allied Engineering Company Limited was established in 1964 in Kerala and fully owned by state Government. KEL is one of the biggest public sector companies in the state. The company was engaged in multi furious activities. KEL has five manufacturing units located in various districts of the state at Kollam, Palakkad, Ernakulam, Kasargod and Malappuram. The company has a man power of 1000, including more than 200

highly qualified and well trained professional engineers. Products are supplied to various Electricity Boards, Defense departments/establishments and Indian Railways. The corporate office of the KEL is situated at Panambilly Nagar , Cochin. The company has a wide range of regional offices and service centers located in most of the major cities and business centers in India for effective marketing and to provide efficient after sales service for the product. The major regional offices and service centers are at New Delhi , Mumbai ,Chennai , Bangalore , Hyderabad , Cochin and Trivandrum. The primary interest of the company is in the field of electrical equipment and machinery encompassing areas such as generation, transmission, distribution and utilization of electric power . In the generating equipment side , KEL is a leading manufacturer of inducted type brushless alternators used for train lighting and air conditioning . In the field of transmission and distribution of electric power , the companies effort have been directed in the manufacturing of transformers , switch gears , transmission line towers , substations equipment and accessories .KEL is a leading manufacturer and supplier of these items to various State Electricity Boards in India. KEL is also an experienced and competent in the erection, commissioning and maintenance of electrical power transmission and distribution networks which includes H.T, L.T substations, both indoor and outdoor type , package unitized substations , overhead transmission lines and pylons , booster stations and street lights etc. The company has adopted modern technologies in association with reputed overseas manufacturers who are experts in this field. The technical collaboration with EVR of FRANCE (now amalgamated with ALSTHOM ATLANTIQUE ) for manufacturing of inductor type brushless alternators , UNELEC of FRANCE for the manufacturing of HRC Fuses and MOTEURS LEROY SOMER of FRANCE for the manufacturing of brushless AC generators. The Mamala unit was established in 1968 and has received ISO 9001 certification by SGS. Mamala unit has got two divisions namely The KEL , Mamala Unit has 2 Production Units : TRANSFORMER DIVISION 9

 STRUCTURAL DIVISION

Transformer division This division is engaged in the large scale production of distribution transformers. The transformer division came into existence in 1968. This division manufactures Medium Power Transformers and Distribution Transformers of ratings up to 3000 KVA class. This division has been approved by the National Test House, various state electricity boards and Power Corporations in the country. This division has an annual capacity of 60000 KVA. The dual ratio transformer developed by the division turned out to bring about desired result. As it is highly adaptable to the interchangeable voltage, the equipment has found ready acceptance in the market. Unitized substation is another product involved by this division and translated into a roaring success. Integrated and self contained unitized substation saves in terms of space, cabling and installation expenses. The transformers manufacturing by this division came out with more special and unique features. Load tap charger control cubicle is yet another example for this. Incorporation of these features has ensured a steady secondary voltage supply. Voltage fluctuation need not become a matter and any voltage drop upto 35% are easily taken cared off by these transformers which are equipped with OLTC that too with different tap ratios. The innovative ideas from the transformer division are backed up by a resourceful R and D team. The relentless pursuit for perfection and uncompromising quality consciousness has been made suitably rewarded by recognition and approval of the center power research institute for KEL transformers. Structural division The structural fabrication shop was set up in 1967 with an installed capacity of 1200MT per annum. This division is mainly engaged in the production of radial gates for dams. The main product handled by the division, which caters to the heavy fabrication sectors are

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a) Hydraulic control gates and hoist for power generation and/irrigation projects of the state electricity boards and state irrigation departments etc b) Industrial building structural, transmission towers, switch yard structures etc. c) Pressure vessels, process equipments, storage tanks and piping etc.

The division has a team of qualified engineers, technicians and other staff with adequate experience in designing and fabrication. The division is able to take up fabrication work of any kind to set standards as it is equipped with highly sophisticated machines. There is a centralized planning and quality assurance department directly reporting to the unit head. The division was also able to capture the goodwill of many state undertakings due to timely and satisfactory execution of a number of projects involving hydro mechanical equipments. It is also bagged to prestigious tenders floated by the Karnataka Power Corporation Limited against stiff competition from global tenders. Design, fabrication and erection of number of projects like hydraulic control and gates hoists, penstock pipes, gantry cranes have been successfully taken up on a turnkey basis. Storage tanks, pressure vessels and industrial buildings are the other areas in which the division has a good track record. Fertilizers and Travancore Chemicals Limited , Hindustan Insecticide Limited, Traco Cables Limited are among major industial undertakings taken up by this division. It has also fabricated and erected towers for the Kerala SEB, Southern Railway and Doordharshan.

Quality system

To achieve customer satisfaction by providing the right product and service at the right time, every time as per customers requirements. 11

Product range a) Inductor type brushless alternator for train lighting and air conditioning- 1KW to 40KW. b) 12KW 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- 12V, 24V up to 50 A. d) High frequency alternator- 400 Hz,up to 50A e) Ground power units for starting Avro and Dorner aircrafts and for powering Boeing aircrafts. f) Ground support units with dual voltage system for starting fighter aircrafts. g) DC, AC power frequency and high frequency power pack for missile firing auxiliary power support.

Vision To be a globally recognised enterprise committed to enhance stakeholders value by providing world class engineer and power system solutions. Mission To achieve our vision by : Applying state-of- the art technological processes and innovative solutions. Building long term relationship with stakeholders in an environment of fair business ethics and values.

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 Creating value through sustainable and profitable growth. Leveraging productivity through highly motivated and enpowered team.

Competitors In the national level main competitors for KEL transformers are Kirlosker Bange , Info Tech Chennai and Crompton Greaves Chennai. In the state level Intrans Ernak is the main competitors for KEL transformers. Market Potential In all India level KEL will be contributed to 2% need when its production is 100%. In the Kerala level KELs market potentiality is around 35-40% of the market requirement.

Main projects done by KEL

Project Name

Client

Nature of work

Falcon Missile Project Thrisul Missile Project

R&DE (Engrs.), Pune DRDO

Vehicle mounted 62.5 kVA, 415 V, 50 Hz, 3-phase DG set 50 kVA Dual Output DG Set

Prithvi Missile Project

R&DE (Engrs.), Pune 13

2 kW, 3000 rpm DG set

Pinaka Project

L&T

8 / 12 kW, 30 V, 400 A Alternator 75 kVA, 220 V, 400 Hz Battery Power Source Vehicle Battery Chargers of Battle Tanks

Akash Missile System Military Power Car

BEL Army

General General General Radar Application Radar Application

Air Force Army

20 kVA, 415 V, 50 Hz,phase alternators 30 kVA, 220 V, 50 Hz, 3phase alternators

Air Force 125 kVA, 415 V, 50 Hz, 3phase alternators Air Force 100 kVA, 220 V, 400 Hz, 3phase alternators Air Force 250 kVA, 400 V, 50 Hz, 3phase alternators Indian Railways 500 kVA, 750 V and 250 kVA, 750 V alternators Defence Airlines 75 kVA, 400 Hz Ground Power Unit for Boeing 737 Indian Navy 10 kW, 400 Hz, alternator BHEL / Railways 200 kW Traction Alternator 70 kVA Trolley mounted Ground Power Unit

Power Cars of Rajdhani & Shatabdi Express Trains Ground Power Unit Ground Power Unit Antartica Expedition Traction Alternator Medium Power Transformer Medium Power Transformer

Nuclear Power Corporaton, Kudankulam, Tamil Nadu Tranvancore Titanium Products Ltd., Kerala 14

3000 kVA, 11/6.3 KV Transformer 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 Radial gates, rope drum hoists, stoplog gate, gantry crane Radial gates, vertical gates, stoplog gate, hoists Slide gates

Upper Tunga, Karanataka

KNNL

Mansi Wakal, Udaipur, Rajasthan Narmada Project, Gujarat

ITD Cementation

J P Associates

Board of Directors

Sri.K.S. Srinivas, I.A.S (Chairman KEL) Additional Secretary Industries (IP) Department Secretariat Thiruvananthapuram.

Sri.M.Chandra Das Joint Secretary to Government

Cdr.(Retd) K. Shamsuddin Managing Director Kerala Electrical & Allied Engg. Co. Ltd. 7th Floor, KSHB Office Complex Panampilly Nagar Kochi - 682 036. Sri.T.P. Premchand Chief Engineer (Mechanical) Water Resources Department Thiruvananthapuram. Sri.T.P.Vivekanandan 15

Finance Department Secretariat Thiruvananthapuram

Member (Generation) Kerala State Electricity Board Vydyuthi Bhavan, Pattom, Thiruvananthapuram 695004.

Sri.P.I.Ittoop Sreyas 6/1090, Aravind Ghosh Road Kozhikkode.

Sri.V.C.Ramachandran Vidhuvan Veedu, Thrippallur P.O Puthiyangam Alathur.

Sri.M.Poklan Adott, Ajanoor PO Kanhangad.

Sri.Venjaramoodu Sasi Edavilakath Veedu Vayyettumukku Venjaramood PO Thiruvananthapuram..

Dr.Santhosh Koshy Thomas Thundathil, T.C.4/336 ARA-31, Near Ambala Nagar Kuravankonam, Kaudiar P.O. Thiruvananthapuram 695 003.

Sri.Selvaraj Sreedhar Block Panchayath Member Vazhakkulam Moovattupuzha

OBJECTIVES OF THE STUDY

Primary objectives 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 Secondary objectives To study about the functioning of each department of the firm. To identify the theory and practical differences in the processes of an organization.

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To know and understand how the management of this company makes use of the management tool, concepts, theories and its principles in practical environment of an organization.

To study the fractional integrity and interdependence of different department in the firm.

To conduct a thorough study about the various strengths, weaknesses, opportunities and threats of the organization.

To understand the back ground, present structure and future prospectus of the organization.

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METHODOLOGY

Methodology is defined as the analysis of the principles of method, rules and postulates employed by a discipline. Rather it refers to the rational and physiological assumptions that underline a particular study. Methodology includes the following concepts. A collection of theories, concepts or ideas. Comparative study of different approaches.

Area of the study The area of the present study is to analyze the organizational and departmental functions of Kerala Electrical and Allied Engineering Co. Ltd.

Types of data collected

The two types of data collected for the study are

1. Primary data: It is the first hand information collected by the researcher himself, which is having an original character. 2. Secondary data:

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It is the data compiled by some other person, which is in the shape of finished products.

The methodology adopted for organizational study is to collect the information from primary and secondary data. The primary data has been collected through the following methods. 1. Observation method: Observation is the method of acquiring the use of sense organs. The process and techniques used in the organization where studied using direct observations and the points where note down. 2. Personal interview: It is a verbal method of securing data. Here the information is obtained by conversing with the respondents. Information regarding each department is collected by conducting interviews with concerned managers and other skilled staffs in the respective departments.

The secondary data has been collected through the following methods.

1. Company profile: Information about the companys various manufacturing units; product range, quality standards, projects undertaken by the company etc. are collected from the profile of the organization. 2. Manuals: Various functions, number of employees and responsibilities of each department has been secured from the departmental manuals. 3. Web site: 19

The companys official website www.kelindia.com has been useful for collecting additional information.

DEPARTMENTAL STUDY

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PERSONNEL AND ADMINISTRATION DEPARTMENT

Personal department is mainly concerned with procurement and development of personal for the attainment of organizational goal. There are numerous personal functions in an organization. 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 of recruitment process. KEL has adopted the Centralized Recruitment System. The recruitment and selection proceedings are conducted at the head office of the company. This method provides certain advantages to the company. The main advantages are: 1. It ensures effective and suitable placement to candidates. 2. The cost of recruitment per candidate is low because of large number of persons recruited. 3. The various units managers do not bother about the recruitment. So they are able to concentrate on their jobs. 21

4. The service of experts will be available for recruitment. The Company has different methods of recruitment. The main sources of personnel are: Advertisement The major recruitment is done through the advertisements. The advertisements are given in local or national press, trade or professional journals. The recruitments of the job are given in the advertisements. The flood of application enables to select a right candidate. The manager and other office staffs are selected through the advertisement. The skilled professionals are selected through advertisement and interviews. Employment exchange The company has recruited employees through the employment exchange mainly the apprentice can be selected through this method. The vacancies may be notified with the exchanges, whenever there is a need. The exchange supplies a list of candidates fulfilling the required qualifications. Exchanges are suitable source of recruitment for filling unskilled, semiskilled, skilled and operative posts. The security staffs are recruited through Public Service Commission. Trade unions The KEL Mamala has also recruited the employees and staff through the mutual agreement between Trade Unions and management. There are three recognized Unions in KEL Mamala. They are the KEL employees Congress, KEL Employees Union. Transfer Transfer involves shifting of persons from present job to other similar place or different places in the same jobs. These do not involve in any change in rank, responsibility and prestige. The numbers of persons do not increase with transfer but vacant post may be attended to. Transfer of employees based on agreement between management and trade union.

Promotion

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Promotion refers to shifting of persons to positions carrying better prestige, higher responsibility and more salaries. The higher positions falling vacant may be filled up from within the organization. A promotion does not increase the number of persons in an organization. A person going to a higher position will vacate his present position. Promotion avenues motivate employees to improve their performance so that they get promotion to higher positions. The promotion is purely based upon the basis of performance, qualifications and experience. Seniority is a factor which is inevitable in promotion. Selection and Training. The head office of the company selects the right person from the advertisement. Based on the advertisements a number of applications are collected and evaluated. The criterion for evaluation is performance, experience and qualification of the candidates. After that the interview is conducted. On the basis of result of interview, the selection board decides who will be selected to the company. Only trained or experienced persons are selected for the requirements of the organization. Transfer and promotion. The selected staff can be transferred to the different units, where the staff is needed. The transfer and the promotion order come from the head office. Transfer and promotion are done on the basis of the agreements between the union and management. Transfer and promotion will be made against the vacant posts whenever suitable candidates with prescribed qualification and experience are available. Promotion will be effected only to the next higher post. When suitable candidates are not available within a particular division to fill up higher posts in the same division, then the post will be filled up from external source. While offering promotions to higher posts, reservations are made for SC/ST

PUNISHMENT ON MISCONDUCT. An employee guilty of misconduct may be awarded only one of the following punishment depending on the gravity of the misconduct. a. Warning in writing b. Stoppage of increment 23

c. Reduction in rank d. Discharge from service e. 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 the case the alleged misconduct prima facie appear to be of serious nature, suspension pending enquiry. In other cases the management will decide whether a formal enquiry should be conducted and if the decision is for an enquiry authority or in cases where an enquiry is ordered may on the receipt of explanation, issue notice to the employee to show cause why a specific punishment should not be meted out to him. On receipt or in the absence of the reply or the expiry of the date by which the reply I called for, the management will pass suitable orders. This procedure will be applicable only in case were punishment are either reduction in rank, removal or dismissal. In other cases, the management shall pass orders which may be appropriate on receipt of the employee explanation.

MANPOWER The company has 106 skilled workers, 146 unskilled workers; staff and security are 42 on the date of 31st march 2007

The companys statistical details of manpower are given below: Sl No. 1 2 3 4 5 6 7 8 Particulars GD/DGM/WM MANAGERS/A.M EXECUTIVES ENGINEERS A.E/FM/JO/AO/APO STAFF/SECURITY SKILLED UNSKILLED TOTAL Transformer division 2 9 4 8 51 89 164 Structural division 2 7 4 8 54 47 122 General 2 5 2 6 7 42 1 10 75 Total 7 21 2 14 23 42 106 146 361

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EMPLOYEE BENEFIT The company has provided some kind of benefits to the employees. The main benefits are discussed: 1) KEL employee Welfare Fund Scheme 1. Short title and commencement: This scheme will be called KEL Employees Welfare Fund Scheme, 1996. This scheme will be in suppression of the KEL Employees Welfare Fund, 1997 and all the members of the above scheme as on 31-03-1996 will continue. 2. These regulations shall apply to all permanent employees who opt to the scheme as per the rule of the scheme. 3. Object The fund will be generally utilized for the welfare of the employees who are the members of the fund committee. The fund will also be utilized for community development activities 4. Fund constitute under the scheme by contribution from the members and by the management and such other sources for the welfare of the members. 5. Contribution of the fund: a. All existing members will contribute Rs: 100/- as a onetime payment. Any employee, who joins this scheme in future, will also pay Rs: 100/- as a membership fee. b. All members will contribute Rs: 10/- per month or as decided amount from time to time towards the fund. c. Donation and grants may be accepted, if forthcoming to this fund. d. If any defaulted contribution is due from a member such arrears shall be recovered from moneys payable to him. 6. Administration of fund: A committee has convened the fund process. This committee consists of one respective of management who is the member of the Welfare Fund and the representatives from the trade union. The Trade unions nominate their representative to the Welfare fund in accordance to the situation. The committee has a chairman: who is the General Manager of KEL Mamala Unit. An executive of personal department will be Ex-officio secretary of the committee. One of the nominees of the trade union will be Treasure of the committee. 25

The welfare fund committee shall make arrangement for actuarial valuation of the fund once in three years and re-fix benefits from time to time. 7. The committee will ordinarily meet once in a month or on the request of the majority of committee members giving a notice period of 7 days or in the case of emergencies. 8. All money pertaining to the fund shall be deposited in a Nationalized Bank or KEL co-operative Credit Society as decided by the committee from time to time. The fund operated by the chairman and the Treasurer. In the absence of the chairman, the nominee of the management should take part in operation of fund. 9. The accounts of the fund for every year shall be audited by such auditors appointed by the committee and published for information to the members before expiry of three months from the loss of the final year. 10. Benefits: a. Personal Loan: Upto Rs: 1000/- shall be sanctioned by the Ex-officio secretary to those members who have no dues in respect of previous personal lean account. This will sanction on Tuesday and Friday. b. Medical Loan The employee avail the medical loan in urgently up to Rs: 500/-. The additional amount of Rs: 2000/- is allowed for hospitalization. 11. Scholarship and awards are allowed subject to the availability of the fund. For this, the applicant should forward to the Ex-officio secretary and submit the photocopy with attest or true copy of mark list. 12. Funeral benefit: In the case of death of spouse, children and parents, an amount of Rs: 200/- shall be sanctioned as funeral expenses. In the case of death of members, an amount of Rs: 500/- shall be sanctioned. 13. Marriage Loan: For marriage of the daughter or the member, loan up to Rs: 5000/- shall be sanctioned. A service charge of 8% is charged. This will be deducted in 50 equal installments. This loan will be restricted for marriage for one daughter of the member at present depending upon availability of fund. 14. Retirement Benefit:

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An employee who superannuates or retires voluntarily or retires compulsorily otherwise than a measure of disciplinary action or invalidated from service during the period specified below: Up to 5 years- His contribution and interest @ 12% 5 to 10 years- in addition to Rs:5000/-, Rs. 100/- per year of service after 10 years.Rs.200/- per annum of service after 15 years. 20 above-in addition to Rs.6500/-, Rs.300/- per year or service after 20 years

15. Death Benefits: A lump sum payment of minimum Rs.5000/- will be made to the legal heir of an employee who dies while in service. 2) LEAVE FACILITY A permanent employee will be entitled to one month privilege leave for every year of service cumulative up to 60 days provided, however, that privilege leave will not accrue during the period of leave availed. Privilege leave will not be available for a period less than 10 days at a time. a) Casual leave: An aggregate number of 14 days casual leave with full pay will be allowed to an employee during one calendar year. For periods less than one calendar year of service proportionate casual leave may be sanctioned. Casual leave will not be accumulated beyond the end of the calendar year to which it relates. b) Festival Holidays: The employees will be allotted 13 holidays in a calendar year. 3) RETIREMENT BENEFITS Retirement and Superannuation

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Every employee shall, on last day of the month in which he attains the age of 58 years according to the company retire from the service of the company, unless specifically regulated otherwise by individual contract. Retirement benefits: a) Every employee shall be entitled to the benefit of the companys contribution Provided Fund Scheme. b) Gratuity shall be payable to every employee on termination of his employment after he has: 1. Rendered continuous service for not less than 5 years. 2. For every completed year of service or part thereof the excess of 6 months, the company shall pay gratuity to an employee at the rate of 15 days wages based on the rate of wages last drawn by the employee concerned. 3. The amount gratuity payable to an employee shall not exceed 20 months wages. 4. Notwithstanding anything contained in the sub-rule a. Above gratuity payable to an employee shall be wholly forfeited if the service of such employee has been terminated for misconduct. 4) EMPLOYEES STATE INSURANCE(ESI) The ESI is a contribution scheme, with the employer paying 4.7% of wages and the employee contributing 1.75% of his wages to the fund. The ESI ACT, 1948 is applicable only to factories. This scheme covers all employees, including casual drawing wages below Rs.6500/- per month 5) EMPLOYEES PROVIDENT FUND The Employee Provident Fund Act, 1952 is aimed at providing social security to the covered employees. Both the employer and employee pay 12% of his wages. Here, the wages includes the basic pay and dearness allowance to employee. Withdrawal from the Provident Fund Scheme is allowed after the employees ceases to work. Employees are also entitled to various loans and advances from their deposit, subject to certain guidline in the act. FUNCTIONS OF PERSONNEL MANAGER Personnel planning for future. 28

 Procurement of right kind and number of persons Proper utilization of resources Organizing by setting up the structure of relationship among jobs, personnel and physical factors to contribute towards organizational goal. Achieving the group goal. Mobilization of talented personnel. Determination of adequate and equitable compensation of employees. Ensure smooth running of business, without any grievances. Provide good working conditions and welfare service to the employees. Directing and controlling the employees. Ensures the growth and development of the company.

SECURITY DEPARTMENT

There is an in house security department in KEL Mamala unit. The security department is under personnel and administration department and the security head reports to Manager P&A.

There are nine security staff, of which three are permanent and six are temporary.

The temporary staffs are appointed from the District Sank Board on contract basis. The contract period is six months.

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FINANCE AND ACCOUNTS DEPARTMENT

The finance department regulates the financial transactions of the company. The company prepares the profit and loss accounts, Balance sheet, Budgets financial performance statements, employee cost analysis, etc. for the findings of the operating results, financial positions, future prospects and other many objects. Statement of operating results derives the performance of transactions. This reveals the profitability for the concern during the period. SOURCES AND USES OF DATA The financial manger of the company collects the fund through the sale of product, from head office and other sources. The unit manger has a limit to dealing the fund upto 2 lakh. Over the limit, he needs the permission from the corporate office of the company. Payroll or salary administration is inevitable factor of the finance department. The salary administration is conducted in two ways: a) For employees and clerical staff under the Industrial Dispute Act b) For managerial staff under Kerala Government Department Rule.

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1. For employees and clerical staff under ID ACT The salary for employees it includes the Basic Pay, Dearness allowance, House Rent Allowances (H.R.A) , fringe benefits ( attendance allowance/ milk allowances), night shift allowance, washing allowance, risk allowance, overtime allowance. The net results of these are known as gross salary Fringe benefits are the allowance which includes the attendance allowance / milk allowance. It is available to employees based on the agreement between the management another trade union. The period of agreement is four years. For the fringe benefits, the attendance is taken from the 16th of the month to 15th of the next month. Charge of attendance allowance is Rs.2.50/- per day of an employee.

In the calculation of basic pay and D.A, the attendance is taken as the first of the month to 31st of the month, (i.e. last day of the month). Basic pay is based on the salary scale of the company.

D.A is an industrial D.A or variable D.A. it means, DA is changing every month. These changes depend upon the point allotted by statistical department of the state. This point differs every month and also is different to different companies and different units to the same company Rs.5/- per point.

Overtime allowances (O.T) is provided to the employees. Who undertake overtime work for the calculation of the overtime the attendance is taken as the 16th of the month to the 15th of the next month. Working time per day is 8 hours.

The overtime charge is calculated as:

Basic pay + D.A.

*2*30

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30 days * 8 hours

Deductions from the gross salary. a) Provident Fund (P.F) According to the P.F Act, 1952, the P.F contribution is deductable from gross salary, both the employee and the employer paying 12% of his wages (i.e. Basic pay and D.A) to provident fund. This P.F contribution is forwarded to the P.F department. b) Employees State Insurance (E.S.I) The ESI is a contribution scheme, with the employer paying 4.75% of wages and the employee contribution is 1.75% of wages of the fund. The ESI facility avail the employees who has a salary up to 6500/- per month. The employee contribution is: 1.75% of gross salary- washing allowance.

The next salary for employees and clerical staff by way of deducting the total deduction from the gross salary . i.e. Net salary = Gross salary-Total deductions.

2. For Managerial staff. The salary scale and D.A is fixed for managerial staff based on Kerala Government department role. When the government declared certain rate of D.A to managerial staff; this will be distributed after the recognition of the board of directors. If the board does not permit to the distribution of the D.A then that D.A will not be distributed to the 32

managerial staff. Gross salary for managerial staff includes the basic pay, D.A and HRA. Deductions are made available to managerial staff in the same, manner to the employees and clerical staffs calculation.

The net salary is calculated as: Gross salary- total deductions

ACCOUNTING POLICIES OF THE COMPANY The following significant accounting policies have been consistently followed by the company except stated otherwise. 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 as cost less depreciation. Assets and liabilities are consistently being recorded as historical cost. 3. Depreciation: a. Depreciation on fixed assets has been provided as per the rate indicated in schedule xIv of the companies act 1956, under written down value method. b. Extra shift depreciation for double shift and triple shift working as been provided in the accounts. c. Depreciation on fixed asets in respect to project work-in-prograss has not been charged in the accounts seems the project has been kept in abeyance as per government direction.

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4. Inventories: a. Finished goods are valued at cost or market price, whichever is less. For arriving at the cost, exercise duty is also taken into consideration. b. Work-in-progress is valued at cost after considering overheads excluding financial charges. c. Raw materials, materials in progress, spares, stores and loose tools are valued at cost. Cost means weighted average. d. Scraps are valued at net realizable value. e. Goods in transit are valued at cost. 5. Sales: a. Sales comprise sale of goods and services and includes Excise duty. b. Price variation climes on sales affected are accounted for an accrual basis. c. The reprocessed transformer oil is accounted at current purchase 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 Basis: Gratuity and leave encashment are accounted on accrual basis in compliance with accounting standards. The amount was determined on the basis of a 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 materials in transit: The liability on account of bank charges and other expenses on materials in transit on the date of closing is accounted on accrual basis. 34

a. Research and Development (R&D) Capital expenditure on Research and development is treated as addition to fixed assets and revenue expenditure eon R&D is charged to profit and loss account under the appropriate heads in the year ion which it is incurred. 9. Contingent Liabilities. Contingent liabilities are not provided for, but disclosed in notes on accounts The KEL have 40000000 equity shares at the rate of Rs.10/- each. The issued, subscribed and paid up shares are 34059371. It is fully paid up shares. This include 6032350 equity shares held by KERALA state Industrial Enterprises Ltd., and 317443 equity shares allotted as fully paid up for consideration other than cash. The balance sheet and profit and loss of the company is shown below.

FUNCTIONS OF A FINANCE MANAGER. Estimation of capital requirements Ensuring a fare return to the investors Make sure the suitable availability of funds Laying down the optimum and suitable capital structure for the company. Adequate control of cash flows Preparation, analysis and interpretation of financial statements. Facilitate maximum utilized of fund.

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BALANCE SHEET AS ON 31ST MARCH, 2010 In Rupees SOURCES OF FUNDS Share Holders Funds: Share Capital Reserves & Surplus Loan Funds: Secured Loans Unsecured Loans TOTAL APPLICATION OF FUNDS Fixed Assets: Gross Block Less: Depreciation Net Block Add:Project work in progress Investments Current Assets, Loans and Advances 36 735589711 265813749 240102114 25711635 61355339 87066974 50000 168603000 298858321 467461321 1217809919 713780770 36567828 750348598 In Rupees

Less: Current Liabilities & Provisions Net Current Assets Profit & Loss Account TOTAL

416290027 319299684 811393261 1217809919

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2010 Particulars INCOME: SALES, WORKS CONTRACT, JOB WORKS AND MISCELLANEOUS INCOME INCREASE/ DECREASE IN STOCKS TOTAL EXPENDITURE: MATERIALS CONSUMED INTEREST AND BANK CHARGES OTHER EXPENSES DEPRECIATION TOTAL (LOSS)/PROFIT FOR THE YEAR (LOSS)BROUGHT FORWARD FROM LAST YEAR (LOSS) TRANSFERRED TO BALANCE SHEET 37 614007000 49094000 357451602 2949000 1023506002 13968398 -825361659 -811393261 1056451000 -18981000 1037470000 In Rupees

MARKETING DEPARTMENT
The KEL has not adopted general features of marketing. The company will have promotional strategy or any other kind of promotion to their product. Because, the product segment is directly connected with the customers, KEL displays advertisements in certain electrical journals only. They have recognized regional centers in various major cities. It also captures order through canvassing customers. The company also employees certain outside agencies, which canvas order. MARKETING PROCESS The KEL collects the Tenders from the newspapers with specification. After collecting tender, KEL prepares tender document. This document will be forwarded to the design department. The company approves the tender up to 25 Lakhs. Above 25 lakhs, the head office sanction or approval is required for the tender acceptance. After this, the unit submits competitive Quotation with companys favour. If the submitted quotation is the best, it gets the tender. Then the company issues an order acceptance letter to the customer. After this, the marketing department prepare a sale order and issues to all other departments that take part in the production. Based on this letter, the design department prepares structural design and process

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design of transformer. The material department purchase and or issue materials to production floor or to store. Then the production function is started. At the end of completion of the production of the transformer, 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 tender. The company also provides after sales services. The company guarantee 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 service on chargeable basis. The company charges Rs. 1500/- per head for a day. MARKETING NETWORK KELs products are marketed by extensive networks of marketing officials located in all the major cities like New Delhi, Mumbai, Kolkata. Bangalore etc. They provide all support services to the sale and marketing service to guarantee complete customer satisfaction. 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.

FUNCTIONS OF MARKETING DEPARTMENT Evolve adequate marketing policy. Ensures the availability of required orders. Make competitive prices. Make sure the payment before dispatching the product Provide after sales service to the clients. Ensure the optimum utilization of resources available to the company.

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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 customers. DESIGN PROCESS 1. Receipt of tender document from transformer marketing section. 2. Issues of materials with current price from the material section to the design department. 3. Issue of estimates and technical specifications from the transformer marketing section to the design department. 4. Receipt of sale order from transformer marketing department. 5. Issue of advanced estimation to production planning. 6. Issue of production drawings, specifications and list of drawings to planning. 40

7. Feed back of test result from Quality Assurance. Test is conducted by the customer consultant or representative and based on this production result design modification, special requirements etc. are made. 8. Design changes intimation to planning department from the design section. 9. Feed back to transformer production section on time to time for manufacturing the product with the customer specification.

DESIGN POLICY To establish and maintain a process for an optimum design conforming to customer requirement and relevant standards within a specified time. FUNCTIONAL OBJECTIVES Reduction of design errors and rework. Computerization of the design work at least by 25% and subsequent improvement.

FUNCTIONING OF DESIGN DEPARTMENT The design department gets tenders from the marketing department. With this tender it makes an estimate in connection with technical specifications and general arrangements by the design and marketing department. This estimate has to be approved by the customer. Then the marketing department issues sale order. Based on this sale order, the design department makes design and negotiates with customer about the design and makes any modifications if necessary. After the approval from the customer, a detailed design is made for each segment of production and materials for each segment. On the basis of that design the production function commences and at the end the product is despatched.

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MATERIALS AND STORES DEPARTMENT

KEL has a materials and stores department which purchases and stores materials for production. The materials department ensure that good quality materials are purchased at reasonable prices. The company has an ideal material control system. KEL follows the ABC analysis for the control of materials. A value materials are purchased against the order, and B value materials are also the similar method. But the C value materials which require minimum control is maintained in the minimum stock level. FUNCTIONS OF STORE DEPARTMENT Subcontractors approval and codification. Purchase of materials. Storage and preservation of purchased products. Ensuring re inspection of stores and products. Control receipt and issue of materials. Release of purchase orders. Prepare monthly inventory statement.

PURCHASE PROCEDURE Purchases are made from the subcontractors as per the quantity specification. Purchase activity is initiated against purchase notice from the user departments. The mode of purchase such as inviting quotations, bid evaluation or direct purchases is based on the documented purchase department guidelines. Purchase is authorised by the general manager materials, finance and accounts and user departments representatives. 42

The particulars of purchase committee are maintained in the purchase committee approval register.

On finalizing the purchases based on the guidelines, purchase order is raised and purchasing is verified.

Then purchase order checklist is prepared. The purchase order is made in six copies. The copies are available to the finance, materials and purchase as well as quality assurance department. Three copies are maintained for documentation purpose.

The purchase order is raised in respect of purchases against already made authorization. The verification of purchased product is carried out.

MATERIALS RECIEVING, STORAGE AND PRESERVATION Store in charge receives copies of purchase orders from materials department. On receiving the materials against purchase orders, the accompanying documents such as lorry receipt, invoice, transport copy of invoice etc. are verified by the store keeper and if satisfied, items are received and entered in the goods receipt register. Security permits the carriers into the company premises on verification of document and enters the details in the register. On receiving the transformer oil in tanker, the store keeper prepares goods received note (GRN) and passes to the quality assurance. Only after verification by the quality assurance, the oil is unloaded. All received items are accounted as per the goods receipt register. GRN is prepared in 5 copies. These five copies are sent to the Quality Assurance department.

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After inspection only one copy is retained. Materials received in barrels, carboys, bag, bundles, rolls etc. are handled either manually or by using cranes.

Oil received in tankers is transferred to storage tanks by pipe lines. Materials are also stored in sub store areas related to each production sites. Items held in storage for more than the specified period are subjected to re inspection. A monthly inventory statement is prepared and sent to planning/production/finance departments.

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PRODUCTION DEPARTMENT
KEL Mamala has a production department. The subdivisions of this department are planning section and quality assurance section. The company has two production unit namely Transformer division and Structural division. The planning section carries out the fundamental function of planning for production. In this section planning of each stage of production is done based on the plan order. Plan order is issued from the marketing and design department. The materials department provides the materials in connection with sale order from marketing. Thus production is done in a much planned method. The function of Quality assurance department is to ensure quality in production process as well as product. The methods adopted by the quality departments are 1. Receiving Inspection and testing. 2. In process inspection and testing. 3. Final inspection and testing. 4. Calibration. 5. Inspection and test status. 6. Control/review and disposition of non conforming products. 7. Electronic media, document and record control. 8. Application of standard techniques. In the two production division skilled, semi skilled and unskilled workers are doing the work. In each division there are three shifts. They are: First shift: 45 12.30 AM to 8.00 AM

General/second shift: Third shift (night shift):

8.00 AM 4.30 PM

to

4.30 PM

to 12.30 AM

The processes of two divisions are briefly explained under. TRANSFORMER DIVISION: KEL manufactures distribution transformers and medium power transformers with the capacity of 3000KVA, 33KV class and with the annual capacity of 600000KVA, there are nine stages in the transformer manufacturing. In each stage one charged hand control the activities in that particular stage process. End frame (fabrication)

In this stage the frame is cut in the shape of E. Silicon steel is used here.

Insulation and assembly. Insulation is done in core building, HV winding and LV winding. Insulation helps to overcome the occurrence of short circuit.

Core building/assembly The core has been laminated with CRGO lamination. Because of this the core will be free from any short circuit.

HV winding

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Conductors are used for High Voltage coil winding. The conductor is wound or insulated with double paper grade strip. HV winding produces high voltage. This high voltage electricity has to be transmitted or distributed.

LV winding Conductor is used here also. The same procedure for HV winding is followed here.

After the completion of coil winding, core coil assembly is carried out. The core assembly, HV and LV windings are assembled in this stage.

TG mounting (terminal gear) The HV and LV winding terminals are fixed into a bush. The terminal gear is built with copper/ aluminium.

Oven drying The windings should be free from moisture. Therefore they are dried at a temperature of 100 degree Celsius.

Tanking The windings are placed in the fabrication tank. The transformer oil is filled into it.

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Final testing Voltage tests are carried to the transformer to ensure its proper functioning.

Painting and despatching The final stage is painting and despatching the transformer. After the payment is made by the customer, despatching of transformer is done as per the specification of the tender.

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TRANSFORMER DIVISION PRODUCTION PROCESS CHART

CORE BUILDING

INSULATION CUTTING

WINDING

CORE COIL ASSEMBLY

OVEN DRYING

TERMINAL GEAR FIXING OVEN DRYING

TANKING

TESTING

PAINTING

DESPATCH

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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 charged hand. A gang involves one welder, one fitter and one unskilled worker. The machines are listed below: Gear hobbling machine: Milling machine: Leith machine: Gillette machine: Press breaker machine: Drilling machine: Mig welding: Used for gear cutting Used for cutting For forming thread For cutting metal plates For bending plates For drilling the plates It is used for welding

The structural division holds one manager, product engineer, assistant production engineer, Forman and charged hand.

MAJOR PRODUCTION PROCESSES Marking Marking and drawing on the material for the next steps. Cutting Cutting the material as per the marking or drawing on the material. Drilling 50

Drilling is done for making holes.

Grinding Grinding is done for shaping the material or removing the excess portion. Bending Bending the material for required shape. Setting Ensuring all the components are as required in the work order and set the components to make assembly and sub assembly. Welding Done for joining the parts together. Straightening To straighten the welded parts and bended parts. Machining Machining is the process to get good finishing of the parts. Surface preparation Cleaning the surface to be painted by using wire brush, cotton waste, chipping hammer etc. Painting Applying one coat of primer as specified in the work order, applying two coats of paint. Keeping Keeping the painted structure in the finished goods stockyard after making the identification marks as per drawing.

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FUNCTIONS OF PRODUCTION AND MAINTANENCE DEPARTMENT: Issue of work order. Co ordinate release of drawings and bill of materials. Proper allocation of work. To check the progress of work. Ensuring the proper utilisation of resources for achieving the target. Maintain the quality of product. Carrying out the preventive and break down maintenance. Release machines and equipments for use after maintenance.

PRODUCTION INFRASTRUCTURE The infrastructure needed to design, manufacture and install as per the customer requirements are provided. Infrastructure includes buildings, machines, testing devices, soft wares and supporting devices. Preventive maintenance and upkeep of infrastructure is done to ensure the capability of infrastructure to meet the customer requirements. When a breakdown occurs, immediate corrective action is taken. All statutory and regulatory requirements regarding installations and manufacturing are maintained.

WORK ENVIRONMENT

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The work environment requirements regarding products to be maintained in the factory are identified and maintained. Proper training for employees is given. All the basic facilities including drinking water, rest rooms and sanitations are provided. PERSONAL SAFETY Employees working in hazardous activity in factory should use safety gadgets namely helmet, safety shoes, goggles, apron, gloves etc. Employees working on roof and structure use safety belts. Proper awareness of safety is emphasized. Visitors when permitted to enter the factory work area are provided with safety gadgets.

FIRE AND SAFETY Materials in storage or processes area which are prone to fire are identified specifically and proper safety measures are taken. Location wise requirements of fire extinguishers are tabulated and maintained by P&A dept. Fire extinguishers are checked at specified intervals and refilled or replaced where necessary to maintain the fire and safety system operations consistently.

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SWOT ANALYSIS

Strength KEL consists of highly qualified personnel. The company has got ISO 9001: 2000 for quality KEL provides inevitable and valuable service to society. KEL maintains good industrial relations. It ensures the quality of products The company manufactures good products without any delays

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Good infrastructure. Direct from the government. All India network service centers.

Weakness Modern technology and machines are not adopted. Inadequate control of materials. The company has not adopted the new method of

accounting.

The company increases the loss year after year.

Opportunity It has an opportunity to adopt new technology in production. Opportunity to adopt new methods of accounting. The company has an opportunity to buy quality material

and to maintain an effective material control. Can access help from government. Wide market in foreign countries.

Threat

Competition from upcoming private enterprises is the major threat to the company.

Financial position of the company is unsatisfactory. 55

Government regulations. Outdated technology.

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FINDINGS

Profit of the firm is decreasing. There is no strike in the company. Gives prime importance to quality. Healthy employee - employer relation exists in the firm. Company has a good team of management and technical staff. KEL offers its customers worldwide comprehensive array of goods and services through its various divisions.

KEL has a manpower base of about 1000, which include 150 qualified and well trained professional engineers.

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SUGGESTION

Company should request financial assistance from the government for avoiding cumulative loss.

The company should be more competitive against private firms. Should minimize the core loss of current. Proper target to be set in consultation with the employees. Proper training should be given to the employees. Production can be increased by giving incentives which results in more output and there by more earnings.

Company should adopt new method of accounting. Company has to adopt new technology in production.

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CONCLUSION

Kerala Electrical and Allied Engineering Company Ltd., 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 9001:2000 etc. for its excellent functioning. The experienced group of directors, efficient management team and highly dedicated employees are the most precious blessings of the company. The organizational study In KEL, Mamala unit helped me to understand the structure and functions of the organization. The overall performance of all departments like finance and accounts, personal and administration, marketing, design, materials and store, production are functioning professionally and efficiently managed. The joint effort of employees plays a major role in the development of the organization.

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BIBLIOGRAPHY

Annual Report of KEL Company website :(www.kelkerala.com) Department manuals of KEL Quality manuals KEL

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