REPORT

of the

ORGANISATION STUDY
at

PROGRAMME LIMITED

HMT MACHINE TOOLS KALAMASSERY

Period

23.05.2011 to 22.0 .2011

S!"#itted "$

Job Thomas
Cochin University of Science and Technology Kochi 682 022 M !"JU#$ 20%%

CONTENTS
Title Page Number

CHAPTER 1 INTRODUCTION TO ORGANISATION STUDY

INTRODUCTION Organizational studies, sometimes known as organizational science, encompass the systematic study and careful application of knowledge about how people act within organizations. Organizational studies sometimes is considered a sister field for, or o erarching designation that includes, the following disciplines! industrial and organizational psychology, organizational beha ior, human resources, and management. "hene er people interact in organizations, many factors come into play. #odern organizational studies attempt to understand and model these factors. $ike all modernist social sciences, organizational studies seek to control, predict, and e%plain. There is some contro ersy o er the ethics of controlling workers& beha ior, as well as the manner in which workers are treated. 's such, organizational beha iour or O( ha e at times been accused of being the scientific tool of the powerful. Those accusations notwithstanding, O( plays a ma)or role in organizational de elopment, enhancing organizational performance, as well as indi idual and group performance*satisfaction*commitment. The orgnaisation study is the systematic learning process about an organisation to understand the diiferent roles of each members in the organization. +n organisation study, the different roles, namely, interpersonal roles, decisional roles and informational roles of arious members are e aluated and how it affects the functioning of the organisation is analysed. +n this work, #*s ,#T #achine Tool $imited at -alamssery was selected for the organization study. 'n industry, which has undergone a radical shift in its paradigm thinking, the +ndian machine tool industry is later recognized as a pro ider of cost.effecti e high /uality lean manufacturing solutions. The industry resiliently supports all its users to enhance producti ity as well as impro e competiti eness, for the betterment of the final customer. (eing an integral sector, growth of the machine tool industry has an immense bearing on the entire economy, especially +ndia&s manufacturing industry. 'nd it is e en more crucial for de elopment of the country&s strategic segments such as defense, railways, space, and atomic energy. "orld o er too, industrialized. ad anced countries ha e created market niches on the back of a well.de eloped and supporti e machine tool sector. ,#T was concei ed by the 0o ernment of +ndia in 1121, and was incorporated in 1134, with the ob)ecti e of producing a limited range of machine tools, re/uired for building an industrial edifice for the country. "ith the success achie ed in the initial years in absorbing the technology and in attaining production competence far ahead of the original plans, the 5ompany launched a bold plan of di ersification and e%pansion which resulted in the duplication of the (angalore 6nit and the setting up of new units at Pin)ore, -alamassery and ,yderabad. ,#T #T$ at
4

-alamassery is established in 1134 for producing the lathe. +n the process of e%pansion, ,#T #T$- started producing printing machines in 1172. O%&ECTI'ES O( THE STUDY) 18 To gi e familiarize with the business organization. 28 To gain familiarize with the different departments in the organization and their functioning. 48 To understand how the key business processes are carried out in organizations. 28 6nderstand how information is used in organization for decision making at arious le els. 38 To relate theory with practice. METHODOLOGY O( THE STUDY) 18 (oth primary and secondary data is collected from the organization. 28 Primary data is collected through inter iews with employees at arious le els. 48 9econdary data is obtained from company manuals especially /uality manuals company web site and other magazines and news papers. 28 :irect obser ation is used to understand the production process. PERIOD O( STUDY The study was held from 24*;3*2;1; to 22*;<*2;1;. LIMITATIONS O( THE STUDY 18 The findings need not be conclusi e but only indicati e. 28 'rea of concentration was mainly ,#T #achines tools limited, -alamassery. 48 The time span of this pro)ect was ery limited to collect all the information.

CHAPTER 2 INDUSTRY PRO(ILE* COMPANY PRO(ILE + PRODUCT PRO(ILE O( HMT

INDUSTRY PRO(ILE The machine tool industry constitutes the backbone of the industrial sector and is ital for the growth of the +ndian machine tool industry. = en though the +ndian machine tool industry is a small segment of the engineering industry, it plays a ery important role in the de elopment and technology up gradation of the engineering industry. The /uality and cost of engineering products depends on the /uality of mother machine tools and their automation le el. The de elopment of the machine tool industry is therefore of paramount importance for a competiti e and self reliant industrial structure. The growth of +ndian machine tool industry and ma)or user industries clearly shows the close inter dependencies of indigenous machine tools and the ma)or user industries. This le el of performance of the ma)or user industries has been made possible only because of support of indigenous manufacture large and small, to meet almost all the re/uirement of machine tools, con entional, 5N5 special purpose and fle%ible manufacturing lines re/uired by them. ,ad the indigenous machine tool industry not been able to meet the ma)or user industries demand, then these machine tools would ha e to be imported, at much higher prices, irrespecti e of rising cost of foreign e%change or not. This would ha e se erely affected not only the country 0NP and the o erall economy of the country but not se erely impaired the country space and the defense sector. PRO(ILE O( COMPANY HMT (y end of the 9econd "orld "ar, the go ernment of +ndia confronted by a big problem of disposing the colossal war waste. 6ltimately, a committee was constituted to in/uire into the possibilities. The committee report of 112> proposed the establishment of a go ernment owned machine tool industry. This was e%pected to fulfill two aspects. The first was being utilization of the ?s.2;;; million worth of metallic waste. The second was the incorporation of a state owned infrastructure @ manufacturing facility. The result was the birth of T,= ,+N:69T'N #'5,+N= TOO$9 $+#+T=:, which di ersified in due course of time to the present stature of the multi core, multi location, and multi unit, multi product industrial giant ,#T $td. The ,#T $td was started as a single factory to produce Tool ?oom $athe at (angalore in collaboration with #*s Oerlikon of 9witzerland in 1134, with a
3

capacity to manufacture around 2;; machines per year. 9ince then different collaborations, continued in house ?A: and tremendous marketing efforts brought ,#T, to present status. The growth of ,#T $td. was characterized by the forward and backward integration of technology and product di ersification. Thus the company that stated with manufacturing and selling lathes e%panded its machine tools products range to e ol e as the ultimate solution in metal cutting. The product di ersification efforts took the company to the business of watches in 11<2, tractor in 1171, die.casting on plastic machinery in 1171, printing machinery in 1172, presses in 1172, lamps A lamp making machinery in 117<, food processing machinery in 11>;, 5N5 systems in 11><, ball screws in 11>< and reconditioning in 111;. The multi product acti ities made ,#T $td. change its identity as ,industan #achine Tools $imited. Today ,#T $td has 1< manufacturing units with 22 products di isions spread through the length and breath of +ndia. ' subsidiary iz., ,#T BinternationalC $td undertakes the e%ports of the company. They are also e%port agents for general other +ndian companies. ,#T $td was restructured in 1112 to facilitate better administration of the multi product business acti ities. 'ccordingly, the following business group was established. 18 #achine tools business group, to concentrate on mental cutting machines 28 +ndustrial machinery business group to deal with printing machines, die. casting and plastic in)ection molding machines food processing machines and metal forming machines 48 'gricultural business group to concentrate on tractor 28 =ngineering components business group to deal with casting and ball screws 38 5onsumer product business group, to deal with watches and lamps +N '::+T+ON TO T,=9= (69+N=99 0?O6P9, T,= 5O#P'ND O"N9 T,?=99 96(9+:+'?+=9 '9 EO$$O"9! <8 ,#T BinternationalC $td. which undertakes o erseas pro)ect A e%ports 78 P?'0' Tools $td. which manufacturers machine tools >8 ,#T bearing $td which manufacture precision bearing in collaboration with #*9 -ozo Fapan 's per the re i al plan of this public sector industry a turn around plan has introduced in early days of this millennium and re.organized as ,#T $td holding company including tractor di ision and presently comprises of the following subsidiaries. 1. ,#T #achine Tools $imited. 2. ,#T "atches $imited 4. ,#T 5hinar "atches $imited 2. ,#T (earing $imited 3. ,#T +nternational $imited <. P?'0' Tools $imited
<

,#T #T$, (angalore ,#T #T$, Pin)ore. HMT MTL* K,-,#,..er$.

7

,#T #achine Tools $imited. STRUCTURE O( HMT Ltd

,#T "atches $imited ,#T 5hinar "atches $imited ,#T (earing $imited ,#T +nternational $imited P?'0' Tools $imited

,#T #T$, ,yderabad ,#T #T$, ')mer.

H M T L t d

1. HMT MACHINE TOOLS LIMITED The ,#T #achine Tools $imited is engaged in the manufacture and marketing of general purpose machine tools, special purpose machine tools, computer numerically controlled machine tools, precision machinery system, printing machines, metal forming passes, dies casting and plastic in)ection molding machines, ferrous and non. ferrous casting. The product range of ,#T machine tools, %,/0,-ore 18 ,ea y duty lathes 28 9ingle and multi spindle automates 48 ?adial drilling machines 28 #ulti spindle drills 38 5ylindrical A surface grinders <8 $aser cutting machines 78 5N5 turn mill centers >8 5N5 wire cut =:#
PIN&ORE

E#9 A E#5 18 ,orizontal machining centers 28 Gertical machining centers 48 #illing machines 28 (roaching machines
KALAMASSERY

18 5N5 turning center 28 Turn mill center 48 Ele%ible turning cell 28 5opying lathes 38 5enter lathes <8 Offset printing machines 78 Paper cutting machines
HYDERA%AD

18 9pecial purpose machines 28 ,orizontal machining center 48 E#9 28 5N5 horizontal boring machines 38 (ed type A floor types boring machines
A&MER

18 0rinding machines 28 9P# grinders 48 5N5 grinders

(ACILITIES A'AILA%LE IN DI((ERENT MACHINE TOOL UNITS

18 5N5 ram type plano miller 28 ,orizontal machining centers

>

Gertical machining centers 18 Gertical machining centers 28 ,orizontal )og boring machines 48 5N5 turning centers 28 Turn mill centers 38 9lide way grinders <8 5ylindrical grinders 78 +nternal grinders >8 Precision gear shapers 18 Precision gear hobbers 1;8 0ear grinders 118 +nduction hardening machines 128 4: co.ordinate measuring machines 2. HMT 1ATCHES LIMITED ,#T "atch $imited manufactures and markets watches including hand wound * automatic A /uarts 3. HMT CHINAR 1ATCHES ,#T 5hinar "atches limited is also one of the subsidiaries engaged in the manufacture of chinar model watches located in 9rinagar, -ashmir state. 2. HMT %EARING LIMITED ,#T (earing $imited is one of the subsidiaries engaged in the manufacture of different types of industrial bearing situated in ,yderabad. 5. HMT INTERNATIONAL LIMITED ,#T +nternational is engaged in the e%port of ,#THs range of product worldwide ,#T B+C also market and backed up by a good sales A ser ices network. +t also under takes Turkey pro)ect A technical ser ices for de eloping countries. . PRAGA TOOLS LIMITED Praga Tools $td is also a subsidiary of ,#T $imited engaged in the manufacture of machine tools located in ,yderabad. THE KALAMASSERY COMPLE3 O( HMT LIMITED KALAMASSERY The -alamassery unit, the 2 machine tools unit was established in 11<4 and started production in 11<2. The unit originally manufactured only two types of center lathes iz. , A $(, but later added special purpose lathes like copying and turrent lathes. #odel $. T.2; was the first product to be indigenously de eloped by the unit B11<>C and the de elopment of this product was a landmark in the history of the unit. The production of this was later licensed to #*9 Ietcos, -erala, #atools, Philippines 5yelon 9teel 5orporation 9rilanka. The original center lathes ,A$( were then replaced by a new family of unified series of lathes, which was designed
1
th

and de eloped by the unit, incorporating the concepts of typification, standardization A unification. PRODUCT DE'ELOPMENT AT MACHINE TOOL UNIT KALAMASSERY The following products are de eloped by the machines tools unit of -alamassery indigenously.

Ye,r 11<1.7; 117<.77 117<.77 11>;.>1 11>1.>2 11>2.>4 11><.>1 111;.11 1111.12 1112.14 1114.12 1112.13 111<.17 1117.1> 1117.1> 1111.2;;; 2;;4 2;;2 2;;2

Prod!4t. $T.2; N,.*N$ E5.23 T$.2; 9(5N5 43 9(5N5 33 9T5 23 9T5 13 =5ONO5N5 9T5 2; N$ 1>; N$ 1>; T9 2; BTwin spindleC '6TO5O#P 9T'$$+ON.2;; '6TO#'N #5=5$ 9#5 "+T, 0'NTO?D 5O:=? 9T'$$+ON 1;;3

DI'ERSI(ICATION O( KALAMASSERY UNIT AND %IRTH O( PRINTING MACHINE DI'ISION :uring the period 1172.74, -alamassery unit di ersified its product range to include printing machinery di ision BP#-C. The commercial entry of P#- was with two types of letter presses iz. ?T= A ?T'E under collaboration with #*9 Nebiolo of +taly. 'utoplaten, an indigenous de elopment came up subse/uently. :uring the ensuring years, the printing machinery di ision came up subse/uently. :uring the ensuring years, the printing machinery di ision came up with offset press iz. O#+? in collaboration with #*9 Nebiolo later indigenous offset press iz. 9O# 14< was introduced to the market. The first two.colour machine from ,#T was O#+? in collaboration with #*9 -orning A (a er of 0ermany. The latest de elopment of P#- is the paper.cutting guillotine P0 12:4, in collaboration with #*9 :i ano (linders of +taly.
1 ;

THE CURRENT PRODUCT RANGE Prod!4t Offset printing machines

Paper cutting machine

Mode9O#24< 9O#223Bfour colourC 9O#24< 9O#241 9O#223 Bdouble colourC 9O#14< 9O#141 9O#123g Bsingle colourC P0.12:4

The -alamassery units of ,#T are famous for de elopment acti ities. Their product ha e always fetched award and prized at different trade fair A competitions. To name a few are the prizes bagged in different +#T=J fairs by E5.23, 9(5 A 9(5N5 machines. The 5N5 lathe model 9T5 has won the G'9G+- +ndustrial research award 11>7 instituted by the Gindhala%i 'udyogik 9amsadhan Gikas -endra, BG'9G+-C for outstanding ad ancement of science and technology. The machine tool product of this unit ha e been certified by ?"T6G.B?einisch west falischer techniseruber wachungs ereinC an international certification agency of high repute as confirming to total /uality management system. (oth the di ision ha e been awarded +9O 1;;1 certification by +?O9. The manufacturing shop at #T- is supported by arious infrastructural facilities like high technology 5N5 machine centres, testing facilities, foundry, heat treatment, computer system, 5': systems etc. 'round <;; well e%perienced personal form the human resources of the unit keeping in line with the current corporate trends. TRANING CENTRE The manufacturing shops at #T- are supported by arious infrastructure facilities like, high technology 5N5 machining center, testing facilities foundry, heat treatment, computer system 5': system etc around >;; well e%perienced personal form the human resources of the unit keeping in line with the current corporate trends. This unit iews ,?: as one of the primary concerns as a measure to increase producti ity and enhance social stranding. The company has a well established training system by personnel of high technical and management skills. The ,?: programme under taken by then includes the following. 1. #anagement orientation programme. 2. 9uper isory de elopment programme. 4. 5ustomer training programme to e/uip the customer for the optimum utilization of ,#T machines. 2. Periodic awareness training programme for employees relating to safety, /uality, ad anced technology, information technology etc. 3. #ulti.skill training to machine operators. <. +nduction and in.plant training to fresh recruits and transferees.

11

'pprentice training programme under the apprentice act. 7. Pro)ect guidance in management or technology to students. >. +ndustrial familiarization program for engineering college students. THE MARKETING NET1ORK O( HMT LTD The machine tools marketing di isions with its head /uarters at (angalore and ha ing wide network of regional and di isional offices spread throughout +ndia caters to the marketing needs of this unit at the primary le el. To co.ordinate the marketing acti ities at unit le el and co offer technical support to machine tool marketing, a strong sales and ser ices team is constituted at unit le el. ,#THs ma)or customer includes defense, railways, automobile and other engineering industries in arious sectors. MAIN INLAND COMPETITORS (OR THE UNIT5S PRODUCTS 18 #ysore -irlosker $td 28 '5= :esigners 48 N5 #achines Pri ate $td 28 $akshmi #achine "orks MAIN (OREIGN COMPETITORS (OR THE UNIT5S PRODUCTS 1C Okuma, Fapan 2C Nori 9aiki, 5o $td., Fapan 4C Tukisama, Fapan 2C #uzak, Fapan 3C +regai, Fapan <C 0:#, 0ermany 7C 5hurchill, =ngland >C =rnault Tayoda, Fapan 1C Gictor, Taiwan 1;CTuma, -orea 11C =#'9, 0ermany 1EL(ARE MEASURES IN HMT* KALAMASSERY 1. 5ompany /uarters are pro ided to employees. 2. 9ubsidized transport facility is pro ided for employees residing outside ,#T township. 4. 5ompany sponsors a central welfare association. This association has four subsidiary clubs, i.e. arts and dramatic club, sports club, social club, educational society. 2. 9ubsidized canteen facility is pro ided to employees.

1 2

1HAT IS 65S7 19 9=+?+

Sort o!t !//e4e..,r$ ite#. i/ t8e 9or:;-,4e ,/d di.4,rd t8e#. Arr,/0e /e4e..,r$ ite#. i/ 0ood order* .o t8,t t8e$ 4,/ "e e,.i-$ ;i4:ed <or !.e. A ;-,4e <or e=er$t8i/0 ,/d e=er$t8i/0 i/ it. ;-,4e. C-e,/ $o!r :e .-$. e; 9or:;-,4e* 49 9=+ 4o#;-ete-$ .o t8,t i/ 9O t8ere i. /o d!.t o/ 0 t8e <-oor* #,48i/e di 29 ,/d e>!i;#e/t.. .4i 9=+ ;-i M,i/t,i/ 8i08 =T .t,/d,rd o< 8o!.e /e 96 . :ee;i/0 ,/d ,! 9or:;-,4e 39 or0,/i?,tio/ ,t ,-- to 9, /o ti#e.. +T9 # 6Tr,i/ ;eo;-e to o! = <o--o9 0ood 8o!.e I N T E R N A T I O N A L S T A N D A R D S ( OR c @UALITY s MANAGE MENT o f 0ood /uality g system o consists of o sound d technical and / administrati u e a procedures l for assuring i /uality. I' t offers more y scope for reducing a costs s prere/uisite s s and u characteristi r ance andwhich will be /uality recognized by manageme trading partners. nt. The +n an increasing challenge number of markets to a and industries third de eloping party /uality nation is to assessment and moti ate registration is processors becoming a pre. and re/uisite for doing manufactur business. +9O 1;;; es to adopt registration as and considered the implement minimum these acceptable le el for standards a supplier and those and to who cannot establish a demonstrate this credible minimum le el may nation not only ha e /uality difficulty in selling registration in certain markets scheme,

29 9=+T+ON

eas u on l m N abl a o e t ti I sta i n at 18 # nd ard g i o s o t for h n, i go e c a er o a nm l . t ent t o e pr h p s oc e e ure a r % me n at p nt d i o 28 Eo o r s cu n t a s w e f tra o r e ini r s t ng k y an 28 9 m d e a pr t n ? s <8 ofe s e ssi a h d on b i u al a p c de s a eel e n s op l d me 78 / i t nt n u i e 38 9et al m s it e 48 = ge y s ner a c t al w o a ma a n b rke r l ts e u i pr n m s oc e i h ed s n e ure s. g s for r reg >8 +

m pr

o es ien effic cy,

14

redu ces

scrap and rework.

The following topics are dealt with in the +9O 1;;; series of standards. 1. +9O 1;;; @ Iuality management and /uality assurance standards section and use. 2. +9O 1;;; @ #odel for /uality assurance in design de elopment, production installation, and ser icing. 4. +9O 1;;2 @ #odel for /uality assurance in production and installation. 2. +9O 1;;4 @ 0uidelines on de elopment of /uality management system to minimize costs and ma%imize benefits. @UALITY POLICY ,#T #$T is committed to total customer satisfaction by the supply of /uality products and ser ices through! 18 5ontinuous impro ement of technology of product and processes. 28 +nno ation and creati ity. 48 =ffecti e implementation of /uality management system. 28 #onitoring the effecti e realization of /uality ob)ecti es and periodical re iew of its suitability. HMT ORGANISATIONAL CHART

P?=9+:=NT OE +N:+'

#inistry of ,ea y +ndustries

(oard of directors

5hairman A #anaging :irector B5A#:C

#anaging directors B9ubsidiary 5hiefsC

:epartments

1. Einance 2. ,uman resource management 4. #arketing 2. ?esearch A :e elopment 3. Technology :e elopment

1 2

DESIGNATIONS IN HMT UNITS OFFICERS

0eneral #anager

Foint 0eneral #anager

:eputy 'ssistant 0eneral #anager

'ssistant 0eneral #anager * :eputy 5hief =ngineer

9enior =ngineer

:eputy #anager * =ngineer Officer * :eputy =ngineer Funior officer * 'ssistant =ngineer

1 <

EMPLOYEES

"orker 9uper isor

"orker 0rade "0.G+

"orker 0rade "0.G

"orker 0rade "0.+G

"orker 0rade "0.+++

"orker 0rade "0.++

"orker 0rade "0.+

1 7

ORGANISATION STRUCTURE O( UNIT AT KALAMASSERY AHMT MACHINE TOOLS LIMITED* KALAMASSERYB

Unit chief &'M(

0 . *
S,e. I/.;e4 t io/ + @!,-it $ Co/tro De.i0/ + de=e-o ;#e/t
@ ! , i t $ . e r = i 4 i / 0
* C o " o r d e r e D e 4 ! t ;-,//i/0 i o

P e r . o / / e -

I/4o#i/0
i/.;e4tio/

i/ ;ro4e.. i/.;e4tio/ + 4,-i"r,tio/* <i/,i/.;e4tio/ + te.ti/0* >!,/tit$ #0#t .$.te#

Prod!4t de=e-o;* ;rod!4t !; 0r,d,tio/ * CAD* .td.* te48/i4,-i"r,r$

H R D*
9 e-< ,r e* IR

S,-e.

e /

(o!/dr$ 'i0i-,/4e

S,<et$ Se4!rit$ PR
1 >

CHAPTER 3 STUDY O( DEPRATMENTS IN HMT MTLK

Organization is a system of clearly defined structure of acti ities consciously designed to allow organizational participants to work effecti ely towards common goals. The organization is di ided into arious departments to impro e the management and control. Organizational studies are attempts to obser e the work of managers and employees in each department in the organizations and learn the secrets of managerial effecti eness. +t also broadens the understanding of organizational processes and fruitfully blends management concepts with work life practices.

The departments in the ,#T #T$ at -alamassery are broadly classified into two, iz., production departments and ser ice departments. The details are gi en below. 7. 9ales >. Iuality SER'ICE control and PRODUCTION DEPRATMENTS DEPARTMEN inspection TS Eoundry department 1. 9tores 1. Training centre 1;. Plant 2. ,uman ser ices #achine tool department resource 11. 9afety A 1. #achine tool manufacturing management security 2. #achine tool assembly 4. Public relations 2. Einance Printing machine department 3. Planning 1. Printing machine manufacturing <. Purchase 2. Printing machine assembly $td The marketing department ofshared the holding company ,#Tall units is by the of ,#T arious parts of the country. $td ,ence separate marketing located department is not a ailable at at ,#T #T$ at -alamssery.
1 1

PURCHASE DEPARTMENT
INTRODUCTION +n the present scenario of increased competition, reduced time to market and globalised outsourcing, material management has e ol ed as one of the ma)or factors for the success of an organization. The Purchase function, a key component of material management is now functioning with more agility and is shouldered with more responsibility than before. +n ,#T $td., and its subsidiary companies, the purchase function is carried out by the purchase department of the respecti e unit or di isions and is responsible for procurement of the unit or di isionHs re/uirement. The heads of the material department and purchase department are accountable for effecti e discharge of purchase functions within the framework of purchase policy of the company. STRUCTURE O( DEPARTMENT

F0#

:0# BprintingC

:0 # B#achine ToolC

:0# B9ubcontractC

#anager purchase

#anager B#aterial PlanningC

:5= B#ater ial Planni ngC

'0# Bsubcontrac t

#anager BpurchaseC

#anager

#anger

#anager

9tore Office 9tore officer Officer B#aterial PlanningC

Office

9taff

9taf f

2 ;

O%&ECTI'ES 18 Timely procurement and supply of re/uired materials with prescribed specifications and /uality at the most competiti e price and terms. 28 Eair, 5onsistent and transparent purchase practice. 48 5ontinuous search for alternate sources of supply and to de elop reliable sources of supply. CLASSI(ICATION O( MATERIALS 'll purchases should be broadly categorized into ?e enue and 5apital. 6nder ?e enue, further categorization shall be made into Production and Non production items. The Production items shall be categorized into K'L K(L and K5L. MATERIAL PURCHASE RE@UEST 1. #aterial Purchase ?e/uest duly erified and signed by the #aterial 5hief shall be the basis for initiating procurement action by the Purchase :epartment. The /uantity and deli ery schedule should be linked suitably to the production programme, taking into account the lead time for procurement. 2. #P? is raised in matching with ma%imum re/uirement of /uarterly or half yearly production dispatch schedule as well as deli ery schedule items keeping in iew the operational plan re/uired at a time and same should be recei ed once in a month by the purchase committee. 4. The #P? shall be raised with re/uisite copy duly appro ed by the material chief. 2. On the receipt of #P?, the Purchase department will enter the #P? no. and distribute to the date of receipt in the #P? control register and distribute to the purchase officer. 3. Eor proprietary items, #P?s must be accompanied by proprietary article certified with source of supply issued by the concerned. MODES O( PURCHASE 1. TENDER SYSTEM Tender system is adopted to procure materials at competiti e rates and different types of tenders are in ogue iz. Open Tender, $imited Tender, 9ingle tender and local purchases through spot offers Bspot tenderC. "here it is wanted, 0lobal tender may be resorted to. Procurement process can also be through electronic mode Be.tendering, receipt of offer through secured mailsC within the pro isions of Purchase manual and rele ant acts. 1. OPEN TENDER)

Open tender refers to calling of /uotations by ad ertising tender en/uiry in website of the company and at least in one reputed local or national newspaper. 'll tender
2 1

notices are to be appro ed by the competent authority. 'll tender notices are to be appro ed by the unit chief * purchase chief. Open tender ha e to be resorted to for an item where the estimated tender alue of purchase e%ceeds 23 lakhs. 6nder no circumstances, the ad ertisement is published in the category of classified ad ertisements. The time allowed for recei ing /uotations against open tender is fi%ed at a minimum of 21 days from the date of release of tender en/uiry Notice. +n case on non. receipt of at least three offers, the due date is e%tended for a further period of 7 days. +n case of open tenders two.part system is followed, iz., technical bid and the price bid. The tender forms are priced suitably to reco er the cost of ad ertisement. Purchase committee is entrusted to finalise fee for tender document. The security deposit and terms and conditions of tender is furnished in the tender notice. 2. LIMITED TENDER) $imited tenders are those addressed to all parties in the appro ed list of endors for the re/uired item as per the database maintained by the purchase department. The ad ertisement is send to the potential suppliers through 65P, speed post, courier or ?'P: or email. The companyHs official email id is only be used for all communication with suppliers. The time allowed for recei ing /uotations against $imited tenders shall be minimum 13 days from the date of release of tender. 4. SINGLE TENDER ) 9ingle Tenders are those addressed to a single party and the reasons for the same are to be clearly recorded in the proposal. This can be resorted to only under the following circumstances! 18 The go ernment has channelized the supply only through single source 28 9upplies are from go ernment and semi go ernment agencies and controlled agencies that ha e a market monopoly for these products Beg. Petrol, :iesel, +ron ore etc.C 48 Proprietary items for which #P? accompanied by proprietary article certificate. 28 :esigner )ustification or customer stipulation for the use of a particular make. 38 Time limit for obtaining offers may be stipulated based on re/uirement. 9ingle tender case is restricted to financial ceiling of 1; lakhs 2. SPOT TENDER ) This is resorted to only for urgent re/uirements. ' team of officers comprising of representati es from Purchase, Einance, and other user departments proceed to the market and obtain spot offers from local endors after physically erifying and inspecting the goods and obtaining the assurance that the items are offered e%.stock. Offer is also recei ed from established suppliers whene er possible the procurement is made from authorized distributor. The cheapest of the /uotation collected by the
2 2

team is used for the selection of the supplier, if the items are not readily a ailable. The alue of the spot tender purchase is limited to ?s.3;,;;;*. To regularize the purchase, confirmation is issued by the unit chief. 2. PURCHASE FROM COLLABORATORS Purchases from the collaborators does not come under tender system, The other procedures like #P?, obtaining sanction for the proposal and placement of purchase orders are to be followed. The import license if re/uired is obtained by the purchase department. The re/uirements in /uantity and alues in terms of foreign e%change ha e to be planned well in ad ance. +t is imperati e that the items are ordered within a reasonable period so that shipment could be effected within the alidity period of license. 3. SUPPLY THROUGH DGS&D RATE CONTRACT The director of general supplies and disposal B:09A:C entered into a contract from arious items to cater to the re/uirement of different go ernment organizations. $ist of stores on rate contract is published by :09A: from time to time is used for the purchase with single /uotation. 4. PURCHASE THROUGH LONG TERM CONTRACT The ob)ecti e of entering into a long term contract is to ensure continuous supply at competiti e rates. $ong term contract should generally be entered into a reasonable time but not more than two years at a time. 5. CASH PURCHASE 5ash purchase should generally be resorted to only in respect of items of small alue and emergent re/uirements. The cash purchase is resorted only in respect of items of small alue and emergent re/uirements. Purchase of material up to ?s.3;;;*. at a time is permitted for cash purchase. 6. WORLD BANK PROCUREMENT +n respect of any item procured out of the soft loan assistance from "orld (ank, the procurement procedures of "orld (ank shall apply. 7. PURCHASE FROM FOREIGN SUPPLIERS The regular tendering procedure is to be followed for the procurement from foreign suppliers. "here the custom duty is not payable on imports because of go ernment e%emption notification or a ailability of special import license is to be indicated in the purchase order. . REPEAT ORDERS ?epeat orders are placed + some cases in order to sa e time and cost. Eresh tenders are not initiated in repeat order procedure. ?epeat order is not permitted more than 2 years of original purchase.
2 4

!. RE"TENDERING ?e.tendering is done in the following cases!. 1C "hen less than 4 tenders are recei ed. 2C +f the price /uoted is significantly high. 4C +f the purchase committee feels that carter e%ists between the /uoted suppliers. 2C 5hange in material or specification after calling for tender. 3C None of the offers meet the desired specification <C +f the endor withdraw the offer. 7C 5hange in the market demand and taste after tendering process >C $1 back out. TERMS O( PAYMENT FOR INDIGENOUS SUPPLIERS 1. Normal payment period is <; days. =%tra payment period is negotiated with the supplier 2. No offer is accepted with condition of opening the letter of credit. 4. +n special cases, part or full payment against the dispatch document or deli ering goods 2. 'd ance payment along with the purchase order is considered as dangerous. 3. +n case of controlled items, where supply is controlled by 0o t. agencies and the supplier insists the payment in ad ance, bank guarantee is accepted. <. The performance of the supplier against the pre ious order is in ariably re iewed. FOR FOREIGN SUPPLIERS 1. Payment is arranged against shipping documents $etter of credit is established only through companyHs banks and same is ad ised to the supplier by the corresponding foreign bank in that area. 2. 'd ance payment is permitted for items ha ing alue less than M2;;;*.. Eor ad ance payment, bank guarantee shall be obtained in case to case basis. 4. The performance of the supplier against the pre ious order is in ariably re iewed. PURCHASE PROPOSAL Purchase proposal is e%pected to contain the following documents 1. TECHNICAL SPECIFICATION The detailed specification is re/uired to be attached with the purchase proposal. 2. COMMERCIAL DETAILS #P? No. Iuantity and alue 9tatutory le is 5learing, forwarding and commissioning charges #ode of transport Ereight charges
2 2

+nsurance :eli ery A5ommissioning charges Payment terms Other terms and conditions "arranty ?isk of purchase :uration of supply

SALES DEPARTMENT
INTRODUCTION 9ales and ser icing acti ity is a most important function in fulfilling the ob)ecti es of the organization and needs of the customers. +t has the acti ities of selling the machines as per customer satisfaction through its after sales acti ities. STRUCTURE O( DEPARTMENT

5hief of sales

9ales #achine Tools

9ales Printing #achine

9ales =ngg.

9er ici n g 9pares

9ales

:ispatc h

9ale s

9er ici n g

9pares

:ispat c h

SCOPE

The scope of the process mapped is sales, ser icing and dispatch of ,#T -alamassery product.
2 3

O%&ECTI'ES The ob)ecti e is to create and sustain customers in the line with the /uantity policy of the company and pro ide after sales ser ice to achie e total customer satisfaction. ,#T #achine Tools -alamassery has a sales department. The machines are manufactured only as per the order from the customer. +f any order cannot be accepted, then the company informs within se en days. +f it can accept the order, within 1; to 12 days, ,#T has to inform the customer that the order is accepted in the legal format. PROCESS The customer contacts the ?egional office and specifies all his re/uirements, deli ery date and other details. These details are then con eyed to the 9ales department and Einance department for appropriateness of design time, design, financial concurrence etc. 'fter the feasibility of the design is confirmed by both the department, it gets into production process. The finished product, after inspection and formalities, is dispatched to the customer at the re/uired rate. The payment is made to the 9ales department. 'fter sending the re/uired commission to the regional office, sales department sends the rest of the cash to the financial department. ACTI'ITIES O( SALES DEPARTMENT 18 ?egional and zonal officers of ,#T are authorized to /uote and obtain order. 28 5larification sought by regional office are replied 48 Orders are checked and registeredH 28 :etails of firm order are forwarded to department. 38 5all for amendments and clarification are obtained from customer. <8 Order acceptance BO'C is prepared for customer orders. 78 'lterations in order acceptance is made through amendments >8 :eli ery period of order is decided in depatch production meeting. 18 'llotment of the machine to the customer is done. 1;8 Eollows up for payment or dispatch clearance are made with customer. 118 The payment or dispatch clearance recei ed is intimate to finance department. 128 :etails of dispatch are intimated to customer. 148 Order and documents to the order including deli ery oucher is put in the customer file. RESPONSI%ILITIES O( 'ARIOUS DI'ISIONS
SALES ENGINEERING

9ubmission of offers for 5N5 lathes against en/uiries and collection of technically and commercially clears orders. =%ecution of orders in coordination with related
2 <

departments is done by the sale engineering di ision. :09A: rates are a ailable for basic lathe machines. 1C I# $%&$&'() '*(+, 18 0eneration of en/uiries in liaison with regional or zonal marketing officer. 28 Preparation and submission of standard tooling machines for 5N5 $athes. 48 +nteract with customers regarding the offers submitted and pro ide clarification re/uired on these offer. 28 Eollow up offer for the receipt of orders. 38 9crutiny of orders and obtaining technical and commercial amendments, if any re/uired. <8 Put up sanction for unit chiefs, if the prices accepted ary from the appro ed prices. 78 Preparation of draft details of firm order for obtaining assembly group numbers or stock numbers from design department. >8 Preparation of tooling layout and follow up for customers appro ed in case of tooled up officers. 18 'ssociate with tooling layouts and also incorporate corrections in tooling layout, if any. 2C I# ,-,./*0&# '*(+, 18 +ssue details of likely orders 28 ?elease of tooling layout for detailed toll design 48 +nitiate manufacturing or procurement of tooling 28 5orrespondence with the marketing officers 38 5oordinate with all concerned sections and technical work up to dispatch of the machines
APPLICATION ENGINEERING

'pplication engineering di ision is e%pected to coordinate the arious acti ities of the concerned department 18 5oordination with concerned department to ensure a ailability of the machine. 28 5onducting )ob trials 48 5onduct pre.sales trials 28 5oordinate for the supply of short supplied items 38 5oordinate with the training centre for training on 5N5 machines
SALES O((ICE

18 9ubmission of offers for con entional machines 28 9crutiny of orders regarding technical and commercial conditions 48 ?elease of order acceptance 28 +ssue of amendments to order acceptance 38 ?elease of Performa in oice <8 Eollow up with marketing or customer for payment dispatched.
SER'ICING

5ommissioning and ser icing of machines supplied

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'rranging free replacement spares for rectifying complaints reported during warranty period 18 #onitoring of customer complaints and pro ide technical ad ice 28 Eurnishing data for /uality assurance department.
SPARES

18 ?ecei ing the customer en/uiries for spare parts 28 +ssue order of acceptance against purchase order 48 +ssue Performa in oice for the payments 28 ?ecei e payment ouchers for accounts department 38 5ollect items against customers order and forward to dispatch sections <8 Eollow up of ser ice issue, material issue and operational se/uence. 78 Planning of spare parts re/uirements >8 5orrespondence with customer and regional offices for spare parts re/uests 18 9ubmission of details of spare parts re/uirements. 1;8 Eollow up with customers regarding pending payments 118 Processing of ,#T regional offices and unit spare transfer indent. 128 :ocumentation of sectional and customer records.
DISPATCH

18 Processing machine and accessories dispatch sheet. 28 :ispatch inspection as per Order of acceptance BO'C 48 Preparation of deli er oucher 28 Physical dispatch of machine and accessories 38 :ispatch of parts or machine with short supply. LIST O( @UALITY DOCUMENTS
SALES

"ork instructions for 0P# sales

SALES ENGINEERING

18 "ork instruction for sales engineering proposal wing 28 "ork instruction for e%ecution of purchase order 48 "ork instruction for )ob trials
SER'ICING

18 "ork instruction for commissioning 28 "ork instruction for ser icing 48 "ork instruction for compilation and upkeep machine files
SPARES

18 "ork instruction for spare /uotation 28 "ork instruction for spare purchase order 48 "ork instruction for spare dispatch LIST O( @UALITY RECORDS
SALES

5heck list on en/uiry for 0P#9

2 >

5heck list for order of acceptance applicable for machines 18 :etails for firm order for machines 28 Order of acceptance BO'C 48 'mendment to O' 28 =n/uiry resister 38 Order under process register <8 Order acceptance register
SALES ENGINEERING

18 5opy of offer 28 :etails of likely oder 48 Purchase order BPOC 28 :etails of firm order 38 'mendment to P.O. <8 Order of acceptance 78 'mendment to O' >8 'llotment order for machines 18 #inutes of meeting with customer 1;8 :epartmental order 118 =n/uiry ?egister
SER'ICING

18 5ommissioning report to finance department 28 :eli ery oucher 48 9er ice report 28 9er icing acti ities 38 'cti ity register LIST O( (ORMATS A'AILA%LE
SALES

18 Order of acceptance 28 'mendment form 48 :etails of form order for machines 28 5heck list for the order of release of O' applicable for machines 38 5heck list on en/uiry for 0P#s
SALES ENGINEERING

18 :etails of likely order 28 :etails of firm order 48 :epartmental order for manufacturing of tooling 28 'llotment order
SER'ICING

18 5ommissioning report to finance department 28 :eli ery oucher for pares 48 9er ice report 28 9er icing acti ities
2 1

SPARES

18 Iuotation 28 Order of acceptance 48 Performa in oice 28 :eli ery oucher 38 :ispatch information

(INANCE DEPARTMENT
INTRODUCTION = ery organization irrespecti e of its size relies on its financial health for its sur i al. The public sector organization ,#T has a full fledged finance department in each of its units located at arious places. The analysis of financial data is carried out by the finance department. The process of financial analysis is employed to e aluate pas, present and likely future performance of the organization. The financial strength and weakness of the organization is established based on the balance sheet and PA$ account prepared by the finance department. STRUCTURE O( DEPARTMENT

0 # BEC

:#EB9C

:#E B(C

#'+N '*5 9

O(9

5ON5 6 ??'N 5 =

5'9,

P*E

P' +(9
BF6N OEE+5= ?C

"'0= 9

2 '*5 9 OEE+5= ?9

+:#E '*5 9 OEE+5= ?

1 '*5 9 OEE+5= ? 1 9T'EE

1 '*5 9 OEE+5= ?

1 '*5 9 OEE+5= ?

1 '*5 9 OEE+5= ?

1 '*5 9 OEE+5= ?

1 F6N OEE+5= ?

2 9T'EE

2 9T'EE

2 9T'EE

4 ;

(UNCTIONS O( (INANCE DEPARTMENT The ma)or functions of financial department are!. 18 'ccounting the transactions carried out by the company and to prepare monthly and annual financial statement. 28 'rrange finance for working capital management re/uirement, capital addition, and other day to day needs. 48 "orking capital management. 28 $iaison with financial institutions and banks. 38 (udgetary control and #+9 'll finance acti ities in ,#T.#T$, -alamassery are computerized 'ARIOUS SECTIONS O( (INANCE DEPARTMENT
I%S AIN1ARD %ILL SECTIONB

The entire bill that re/uires payment to be made by the company is sent through the +(9 section. +t includes purchase bills, e%pense bills and sundry creditor management. The +(9 prepares the accounts for the purchase of material and other e%penditure. Preparation of payment ouchers for the purchase offer, scrutinizing the purchase order #+ slip and supplier in oice are done by this section. +(9 prepares the monthly statements of sundry creditors and outstanding e%penses and also makes entries for pro isions.
O%S AOUT1ARD %ILL SECTIONB

The entire bills that re/uired payment towards the company are sent from O(9 section. O(9 section carry out debtorHs management, inwards management, in oice generation etc. This is mainly done based on the documents recei ed from sales department. O(9 interconnects the ,#T and customer for payment matter. Eor dispatching the product, deli ery oucher and other acceptance come to outward bill section and then to the concerned department. O(9 prepare in oice after erification and then submit it to the dispatch section. The machine is sent to the customer at dispatch section only after recei ing the in oice from O(9. The department maintains monthly statement about the debtor realization and pro isions for sundry debtors.
(INANCIAL CONCURRENCE SECTION

Purchase of raw material and incurring of any other e%penditure can be done by only with the concurrence of finance department.
PRO'IDENT (UND SECTION

This department takes care of the employeeHs pro ident fund and pension funds. This section arranges the reco ery of pro ident fund from the employee salary. The present statutory minimum reco ery is 12 percent. The employees are allowed to contribute higher /uantum oluntarily. The company also contributes 12 percent of each employeeHs salary into the pro ident fund account. The amount contributed by
4 1

the employee and employer along with the interest is paid to the employee at the time of retirement or resignation or separation of employee.
1AGE SECTION

This section deals with salaries and wages of all personnel. The wages section prepares the pay roll e ery month on the basis of muster roll gi en by time office. The pay roll preparation process is computerized. This section also deals with the ad ances to employees.
CASH SECTION

This section is concerned with all receipts and payments. This section keeps the cash day book and bank day book. The payment ouchers prepared by inward bill section, wages section and other section are sent to the cash section for final payment. The salary to the workers and supplementary payroll for all employees are prepared by cash section. "hen the payments or ad ance che/ues are recei ed from the customer against in oice, the same is presented to bank by the cash section. 5ash section is responsible for ensuring that the cash credit does not e%ceed the limit.
MAIN ACCOUNTS SECTION

This section records the arious transactions accounted by other sections. This section prepares the final account. #ain account section prepares the balance sheet of the unit e ery year.
COST AND MATERIAL SECTION

This section deals with the keeping of cost data. Price fi%ation is also done by this section by making use of costing techni/ue. This section estimates the standard and actual cost of the machine manufactured by the company. This section prepares the data for selling price of the machine, special accessories and spares. The cost data for the cost fi%ation of spare parts is furnished by this section. This section maintains computerized store ledger and stock statements. +t also prepare annual budget on the basis of production programmes, sale programmes and capital budgets. This section is responsible for all #+9 and section also prepares cost monitoring report. SIGNI(ICANT ACCOUNTING POLICIES
%ASIS O( PREPARATION O( (INANCIAL STATEMENT

The financial statements are prepared as of a going concern, under the historical cost con entions, on accrual basis of accounting and in accordance with the pro isions of company act 11<3, and comply with mandatory 'ccounting 9tandards of +ndia.
1. (I3ED ASSETS

Ei%ed assets are alued at the cost of ac/uisition or construction or net of credit less accumulated depreciation to date. 5ost includes direct cost and financing costs
4 2

related to borrowing attributable to ac/uisition that are capitalized until the assets are ready for use. $aid recent free cost from the state go ernment has been nominally alued and incidental e%penditure on de elopment of laid is included in the cost of land. Ei%ed assets ac/uired under financial leases are not capitalized. ,owe er the amount of lease rentals for the une%pired period of the lease is disclosed as contingent liability. +tems of capital assets with ":G of ?s.1.; lakh and abo e which ha e been retires from acti e use, are disclosed at lower of book alue or net realizable alue and shown separately in the fi%ed asset schedule.
2. DEPRECIATION

:epreciation on fi%ed assets is pro ided on straight line method, at the rate prescribed in schedule J+G to the companies act, 113<, prorate with reference to the date of addition or deletion e%cept assets costing less than ?s.3;;;*. per assets which is written off to ?s.1*. in the year of purchase. :epreciation on fi%ed assets is calculated on prorate basis from the date of such addition or as the case may be up to the date on which such assets ha e been sold discarded or destroyed. Premium for leasehold land is mortised e/ually o er the period of lease.
3. IN'ESTMENTS

+n estments are either classified as current or long term. 5urrent in estments are carried at lower of cost and fair alue. $ong.term in estment are carried at cost and pro isions recorded to recognize any decline, other than temporary, in carrying alue of each in estment. 0ain or loss in recognized in the year of sale.
2. IN'ENTORIES

+n entories are alued at lower of cost and net realizable alue. The cost of materials is ascertained by adopting weighted a erage cost method
5. DE'ELOPMENT AND COMMISSIONING

+n respect of new pro)ects, the pre.product re enue e%penditure Bincluding depreciationC is collected under the head K:e elopment and commissioning e%penditureL and charged to re enue o er four years as follows. B1C +n the year of commencement of the commercial product, one fourt of the de elopment and commissioning e%penditure on a prorate basis for the period of production in that yearN and B2C The balance e/ually o er the ne%t three financial years immediately following.
. DE(ERRED RE'ENUE E3PENDITURE

Technical assistance fee Bincluding fee for technical documentation e%change fluctuation differenceC paid * payable under foreign collaboration agreement are amortized e/ually o er the duration* balance duration of the rele ant agreement.
4 4

=%penditure incurred on reconditioning of plant, machinery and e/uipment is amortized o er a technically e aluated period of useful life not e%ceeding 3 years with prorate write off in the initial year. 0ratuity, earned lea e encashment, settlement allowance and lump sum compensation paid to employee recei ed under oluntary retirement scheme are written off in the year of disbursement of the amount. =%penses incurred in respect of bonds issued for raising funds to meet payments made under the oluntary retirement scheme are amortized proportionally o er a period of 3 years.
E. RE'ENUE RECOGNITION

9ales are set up based on 18 Physical deli ery of goods to the customer* customerHs carrier* common carrier, directly supported by in oice e%cise duty paid challan, gate pass, deli ery oucher and $?*0? in case of e%.works contracts. 28 $?*0? obtained and endorsed in fa our of customer consignee OselfH in the case of OforH designation. 48 9ales include e%cise duty but are net of trade discount and e%clude sale ta%. >. (OREIGN CURRENCY TRANSACTION Transactions in foreign currency are recorded at e%change rateBsC pre ailing on the date of transaction or at the forward contract rateBsC where er applicable. 5urrent assets and liabilities Bother than those related to fi%ed assetsC are restarted at the rate pre ailing at the year end or at the forward contract rateBsC where er applicable and difference is recognized as income or e%penditure in the profit and loss account. =%change difference arising and restatement of liabilities in foreign currency relating to fi%ed assets is ad)usted to the carrying cost of the specific asset.
F. %ORRO1ING COST

(orrowing cost are charged to re enue e%cept those incurred as ac/uisition or construction of /ualifying asset that necessarily takes substantial time to be ready and until intended use of the assets, that are capitalized to the cost of such assets.
10. LEASES

$ease rentals paid as per contractual obligations in respect of assets taken on lease are charged to re enue.
11. RETIREMENT %ENE(ITS

Pro ident fund is pro ided for under a defined benefit scheme. The contributions are made to the trust administered by the company. $ea e encashment is pro ided for under a defined benefit scheme on actuarial aluation.
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0ratuity is pro ided for, under a defined benefit scheme, to co er eligible employeeHs liability being determined on actuarial aluation. 'nnual contribution are made, to the e%tend re/uired, to a trust constituted for this purpose and remitted to life insurance corporation of +ndia, under which the co erage is limited to ?s.3;,;;;*. per eligible employee. The balance pro ision is being retained in the books to meet any additional liability accruing thereon for payment of gratuity. 9ettlement allowance is pro ided for under a defined benefit scheme, to co er eligible employee, liability being determined on actuarial e aluation. Pension is pro ided for under a defined benefit scheme, contributions being administrated by the go ernment.
12. 1ARRANTY

"arranty pro ision for contractual obligation in respect of machines sold to customers is set up on basis of an annual assessment made with reference to past e%perience and is pro ided in the year of sale.
13. SPECIAL TOOLS

=%penditure of manufactured or brought out special tools are amortized e/ually o er a fi e year period or earlier, if scrapped. +ndi idual items costing less than ?s.73;*. are written off fully in the initial year of ac/uisition* manufacture.
12. RESEARCH AND DE'ELOPMENT COST

?e enue e%penditure is charged to profit and loss account under natural heads. 5apital e%penditure is recorded as additional to fi%ed assets and depreciated o er the estimated lifetime of related asset. Prototypes de eloped are carried as items of in entory at the lower cost or net realizable alue until sale*transfer*scrapping. Prototypes remaining not disposed off for a period of fi e financial years are pro isioned for obsolescence in the si%th year. 5ontributions to sponsored research and de elopment are amortized e/ually o er the duration* balance duration of the programme.
15. OTHERS

The amount of ?s. 3;,;;;*. per head recei ed * recei able from $*5 in respect of gratuity claims of employees separated under G?9 during the year is accounted as other income. +n respect of employees who ha e separated other than oluntary retirement scheme, the gratuity paid in e%cess of ?s. 3;,;;;*., earned lea e encashment B=$=C, settlement allowance B9'C is debited to the respecti e pro ision accounts. The pro ision at the year end for gratuity =$= and 9' is restated as per actuarial aluation done at the year end in compliance with accounting standards 13. in case
4 3

of =$= and 9', any short or e%cess pro ision is charged as e%penditure or treated as pro isions no longer re/uested. SOURCES O( (INANCE The sources of finance are!. 18 9ale of machines 28 9ale of 9pares 48 9ale of 'ccessories 28 9ale of 9crap 38 9er ice <8 Fob order

PU%LIC RELATIONS DEPARTMENT

INTRODUCTION Public relation department is meant for communicating with the people who wish to gather information about the company. 5oncept of Public ?elation as defined by ,#T is KPL stands for Performance and K?L stands for ?ecognition. ,ence public relation is the art of getting recognition for performance of organization. Eor the growth of the organization, it is necessary to ha e an efficient public relations department. STRUCTURE O( THE DEPARTMENT

0eneral #anager

:eputy 0eneral #anager B,?#C

Public relations officer

Office superintendent

Office staff A mail dispatch

?eceptionist

Photo copier operator

4 <

SECTIONS UNDER PU%LIC RELATIONS DEPARTMENT The arious P? sections includes ad ertising section, news * information section, graphic* photo section and grie ance section.
PU%LICITY SECTION

Publicity section looks after the preparation of publicity materials, its implementation and re iew publicity strategies from time to time.
AD'ERTISING SECTION

The ad ertising section decides the ad ertising strategies and budget in consultation with marketing department and ad ertising agencies. This section study the response of arious ad ertisements in print and electronic media, message and their content
NE1S G IN(ORMATION DESK

News*information desk is responsible for press co erage, keeping the records of press clippings on sub)ects of interest to the company.
GRAPHICSG PHOTOG LAYOUT SECTION

0raphics* photo* layout section de elops designs the isual part of the publicity materials* brochures* information bulletin and house )ournal of company.
GRIE'ANCES SECTION

0rie ances section interacts with arious publics who are unable to get their grie ances resol ed from the concerned resol ed from the concerned department of the company in the first instance. (UNCTIONS O( THE PU%LIC RELATIONS DEPARTMENT The functions of the public relations department emerge out of the change in alues, philosophies and attitudes of the top management in the company. +n the past, public relations department had meant for only two ma)or functions, namely, public opinion and communication. +n the modern era, many functions, such as e aluation, research, and counseling are associated with the public relations department
1. E'ALUATION

The increase in the risk factors and the in ol ement of high cost in the acti ities made essential to e aluate the arious programme from time to time. The e aluation not only ensures the achie ement of its ob)ecti es but also increases the intensity of the impact of the programme. The e aluating programmes are related to building of corporate image, social ad ertising, building of fa ourable customer attitudes towards the company, building of sympathetic attitudes towards the company among publics.
4 7

2. RESEARCH

?esearch carried out by the public relations department enhances the credibility of the company. The public relation department conducts research on the performance of the arious groups in the company.
3. COUNSELING

5ounseling is an important function of public relations department, which helps to de elop long lasting relationship with the publics and associating firms. The ob)ecti es of counseling are to understand the basic grie ances of the customer, e%change important information about the company, in ite the suggestions to resol e the grie ances and to e%plain why some of the suggestions are not feasible for implementation. 5ounseling is the effecti e method of understanding the trends of arious publics.

HUMAN RESOURCES DEPARTMENT

INTRODUCTION ,#T $td has around 11,;;; employees in the corporate le el. The employees are di ided into two groups, P9 grade and "0 grade employees in the shop floor and in arious offices the employees include trainees recruited into arious grades. +n addition, there are :irectors, a 5hairman and #: appointed by the 0o t. of +ndia. The total strength of employees in ,#T #T$, -alamassery is now 211 compared to 4;;; when it was started. This is due to G?9 policy acti ely followed by the company. 't present, 2;2 officers, 143 direct workmen and 1<2 indirect workers are working in ,#T.#T$ at -alamssery. STRUCTURE O( THE DEPARTMENT

:eputy 0eneral #anager B,?C

'sst. 0eneral #anager B,?#C

#anager training :y. #anager B"elfareC

9r. #edical Officer

9r. =ngineer BtrainingC

9r. =ngineer BestateC

Officer +? Officer P? :y. =ngineer :y. =ngineer

4 >

(UNCTIONS O( HUMAN RESOURCES DEPARTMENT The ma)or functions performed by the department are industrial relations, training, safety A securities, personal acti ities and welfare acti ities
1. INDUSTRIAL RELATIONS)

The company has been en)oying peaceful industrial atmosphere for as long time. The company has the cooperation of employees in almost all the acti ities. "hene er conflict occurs it is the duty of this department to look into the matters and take correcti e action. The +? Officer acts as a liaison with legal ad isors. +n the early days there were only one recognized union in ,#T and it was 5+T6. 5urrently there e%ist four ma)or trade unions. TheyHre 18 ,#T =mployees 6nion. this was affiliated to 5+T6. +t is the 1st and largest union in the company. 28 ,#T =mployees 5ongress. this is also a recognized union affiliated to +NT65 48 ,#T "orkers 6nion 28 ,#T employee federation The 0.#. of the unit meets the trade union leaders once in e ery month to listen to their suggestions and complaints and to appraise the o erall situation of the company. +t is natural that the interest of management and trade union differs on certain issues. +n an industry the ma%imum production can be achie ed only by securing the confidence and cooperation of the trade union leaders and utilizing them in a positi e way.
2 TRAINING

,#T gi es ery high priority to human resource de elopment through training and organizational acti ities. The company looks after training needs of employees through their life in the origin. They also conduct customer training programmes. The programmes are sandwiched with lecture sessions followed by interacting sessions guided by arious e%pert faculties. The medium of instruction is =nglish. There are mainly four types of training programmes, namely, employee training, customer training, statutory training and student guidance programme ,. E#;-o$ee tr,i/i/0 I#1/.*0&#! :uration of this programme is one year. +nduction is gi en to the people selected through recruitment. +f the person successfully completes induction, he will be posted in suitable area. Otherwise gi e further training. I# $)(#* *%(0#0#+2 +t is the training gi en inside the plant or hands on training. +t may be gi en to the employees who are transferred from different plants in different places.
4 1

M/)*0"'30)) *%(0#0#+2 This is pro ided as and when it is recruited. This is gi en only for direct workers on the basis of recommendations of department head. :uration is three months. (ut it can be e%tended beyond three months if re/uired. :uring training programme workers are considered as indirect workers. P,%0&10.() (4(%,#,'' *%(0#0#+2 This training is gi en to super isor and worker category employees depending on need and nature of work. =mployees for training may be selected by head of the department. ". C!.to#er tr,i/i/0) +t is gi en to the customers for the optimum utilization of their products. The main products of the company are machine tools. There are two types of machine tools. con entional lathe A 5N5 lathes. CNC &$,%(*0&# *%(0#0#+2 +t is maintenance and operation training programme. +ts duration is one week. Eree training programme is gi en to a person per machine. +t is gi en in four areas! 18 5omputer programming 28 5N5 programming 48 #etallic and hydraulic programming 28 =lectric and electrolytic maintaining ' nominal amount is charged from all the candidates. Training calendar is prepared before #arch e ery year. 5alendar is sent to customers through marketing offices and sales offices. Eeed back is collected at the end of the programme. 5ertificate is pro ided for training programme. P%0#*0#+ 5(.60#, *%(0#0#+2 The training includes usage and safety measures to be adopted. +t is also for one week. P%&1/.* &%0,#*(*0&# *%(0#0#+2 +t is gi en to the marketing e%ecuti es, sales e%ecuti es and ser ice engineers. +t is intended to gi e awareness about new products and also to gi e awareness about the new properties added to the product. 4. St,t!tor$ tr,i/i/0 A,;;re/ti4e.8i; tr,i/i/0B) +t is gi en as per the guidelines ministry of labour and ministry of industry. G%(1/(*, *%(0#0#+2 +t is gi en to (. Tech graduates with mechanical and production. +t e%tends to a period of one year T,.6#0.0(# ($$%,#*0.,'60$2 +t is gi en to :iploma holders with mechanical, ci il, electrical, and electronics back ground. 9tipend is same as that of graduate training. 7&.(*0&#() *%(0#0#+2 Office apprenticeship, medical lab technician etc are coming under this category.
2 ;

T%(1, ($$%,#*0., '60$2 +t is gi en to those who ha e passed 99$5, securing 1st class. Eor this training there is an entrance e%amination and inter iew. 'fter that trades are fi%ed Btrades are fitter, milling, turning, grindingC. 'lso apprenticeships training for +T' holders are conducted by ,#T. The company also gi es training for the operation of 5N5 lathes, for which duration is < months. +t is pro ided to si% persons at a time and a negligible amount is charged for the same. 'lso there is student guidance programming.
SA(ETY AND SECURITY)

S(8,*92 5ompany adopts statutory measures for ensuring safety. 9i%ty fire e%tinguishers are placed at different places inside the organization. The company conducts periodical medical checkup for employees in certain areas like electroplating which affect the health of the employees. ' welfare checkup is gi ing to employees in foundry periodically. +n this department acti ities are carried out according to safety standards. These standards are e%hibited at different places inside the organization. The employees are gi en se eral safety e/uipments like leather glo es, PG5 glo es, helmets, fire shield, dust mask, welder shield, safety shoes etc. +f any accident occurs in the company, the matter will be informed to the safety department within 22 hours by the super isors through an accident intimation form. This form is prepared in triplicate . one copy to medical department, one copy to the safety department and the third to the concerned department. The super isor should inform to the =9+ department if the in)ured employee ha e =9+. 'll the accidents in the factory should be communicated to the factory inspector, if the employees are disabled for more than 2> hours. There is a safety committee for discussing the problems relating to the safety of workers. The company maintains a pollution free en ironment inside and outside its premises. ,owe er certain areas such as foundry, chimney, electroplating department etc. are under the pollution control board. They undertake the sample periodically from the areas and check whether it is restricted to permissible le el. S,./%0*92 The main function of the security department is to protect the companyHs property. 0ate pass is too pro ided for all the employees and also to those who enter the company for arious purposes. There is separate entry for men and materials. This department undertakes patrolling day A night. +t is the duty of security department to flag on the national flag in the morning and flag off in the e ening. 't present, nine permanent staffs are in the department. #ost of them are e%.ser ice men. Twenty employees in the department are working on contract basis. They are kept in the security department as gate keepers. The main duty of this department is to check e ery employee and restrict entrance for unrecognized persons. The registers maintained in the security department are! 18#aterial out going register* white pass !sake of materials 1. 0ate pass 1 @ the sending of machinery, spare parts within +ndia.
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0ate pass 2 @ the material is sent to other country. 18#aterial incoming register! the material coming into the companies are recorded here. The security will check /uantity, supplier name etc. 28Tool register! temporary going of tools, to different parts in the company. +t contains date, time, /uantity etc. 48+n o er time record contains records who ha e worked o er time.
PERSONNEL ACTI'ITIES)

This includes all the personnel administration acti ities in the company, the personnel function is carried out according to the policy framed by manual. 9ome of the personnel functions in the company are! 0: HRM +%0,;(#., $%&.,1/%,2 The ob)ecti e of grie ance procedure is to pro ide a settlement of grie ances of officers and to adopt measures so as to ensure e%peditions. 9ettlement of grie ance leads to increased satisfaction on the )ob and results in impro ed producti ity and efficiency in the organization. The arious stages in the submission of grie ance are as follows. 18=ach unit has a grie ance committee consisting of production chief account chief and personnel chief of the unit. The personnel chief being con ener of the committee. 28The aggrie ed person should submit his grie ance in writing to the con ener of the grie ance committee. 48The con ener should collect all the related rele ant data regarding the sound grie ance. 280rie ance committee then calls the assigned officer with in fifteen days of the receipt of the grie ance and discuss with him. "ithin a week the grie ance committee should record and submit its findings. 38The findings of grie ance committee should be communicated to the assigned officer by the con ener with a copy to the department head for taking necessary action arising out of the findings of the grie ance committee. +f the aggrie ed officer is not satisfactory with the findings of the grie ance committee, he may prefer an appeal to the 6nit 5hief. The 6nit 5hief should con ey his decision within fifteen days of the receipt of the appeal. The decision of the 6nit 5hief is final. 2C R,.%/0*5,#*2 Procedure for recruitment of management trainees in engineering and other professional areas! The recruitment in these areas will be made by the 5orporate Personnel :irectorate. 4C I#1/.*0&# $&)0.92 The induction program is for a period of one year. The functional relationship between corporate ,?: di isions with management trainees during the induction program continues for the whole year. The purpose of this induction program is to facilitate the transition of the trainees from the campus to the industry. 2C P%&5&*0&# $&)0.92 There shall be two systems of promotion within the e%ecuti e positions in ,#T, namely, promotion within the group and promotion between the
2 2

groups. 'll promotions are made in accordance with this promotion policy which will be from one scale of pay to the ne%t without skipping any scale of pay. The promotion norms shall consist of two parts 18=ligibility factors, which include a /ualifying period, /ualification norms attendance conduct prescribed standards in Performance 'ppraisal. 289uitability factors, which include an inter iew and assessment of the potential of the e%ecuti es in his own channel or for a post other than in his own channel of promotion. Promotion within the groups: 1. 6nit cadre! The 5ompetent 'uthority on the recommendations of :irectorate will make promotions within the groups. 2. 5orporate cadre! 'll promotions in the 5orporate i.e. group G shall be sub)ect to a ailability of acancies and the organization need to fulfill them. Promotion between the groups: These promotions shall be made in accordance with the abo e eligibility and suitability factors and will be based on the a ailability of acancies and the organizational need to fill up such acancies. +n considering the promotion of an e%ecuti e from 1 group to another, merit will be the primary consideration which will include an assessment of the e%ecuti eHs potential and aptitude for higher managerial position. =%ecuti e who ha e outstanding reports for three consecuti e years shall be considered for promotion in accordance with /ualifying periods prescribed for outstanding category. The outstanding ratings of these e%ecuti es shall be re iewed in detail before such consideration by the respecti e performance re iew committees constituted for that purpose under the Performance 'ppraisal system. The low performers who fail to fulfill the prescribe eligibility norms for three successi e years shall be counseled by the committees. This is in addition to the counseling done by their respecti e reporting officers as laid down in the appraisal system. The committee may also recommend de elopmental training and change of )ob to enable such low performers to impro e their performance. ;: P,%8&%5(#., ($$%(0'() '9'*,52 The appraisal will consist of the following stages! 18'ppraisal rating of the employee on 1. Fob performance factors. )ob knowledge, /uality of work, target fulfillment, costPtime control, and safety consciousness. 2. #anagerial ability factors. planning A organizing, problem analysis and decision, inter personal skills, communication skills, self moti ation, commitment, responsi eness to change, de eloping subordinates, management of human resource, positi e discipline.
2 4

0eneral comments and o erall assessment of de elopmental needs of appraise leading to final assessment. 18?e iew discussion by appraisal 28Eollow up action to the taken 48?e iew discussion b*w appraises and after appraising the employee is complete both by reporting and re iew officers. <C 7&)/#*(%9 %,*0%,5,#* '.6,5,2 The scheme is introduced to cut down the manpower strength and reach an optimum le el and also pro ide monetary benefit to employees. The scheme is not applicable for professionally /ualified employees like graduate employees and professionally in finance, ,?#, marketing. Procedure for VRS: =mployees opting for the scheme are to apply through proper channel to the ,?# chief. The ,?# department erifies the particulars and forwards it to recommending committees. 'fter recommendation it is permitted. =mployees are permitted to retire on any day of the shift. ;00: P(%*0.0$(*0;, 5(#(+,5,#*2 +n this scheme the participation flow from the grass. root to a corporate le el through arious stratified councils, namely, micro le el councils and macro le el councils. Micro level councils: #icro le el councils include workgroup council and unit management council Work group council: +t is functioning at work unit le el. 5hairman is the officerP super isor of the work group and other employees in the work group are members. This council shall pro ide a total and effecti e participation at the grass root le el. 18 Sectional management council @ chairman is the sectional head and members are the officersP super isors. This council shall re iew the progress of the work group councils functioning under their control. They shall discuss arious problems of their section and try to sol e them. 28 Department management council @ departmental head is the chairman and all the sectional heads are the members. This council shall re iew the suggestions gi en by the sectional management council and try to sol e the problem. 48 Link pin council: $ink pin council consist of unit chief, president or general secretary of the recognized union, President of the officerHs association, Production chief Einance chief, Personal chief. This council shall o ersee the functioning of all the abo e councils and monitor their acti ities. This council shall play the role of T?O6($= @ 9,OOT=? and 5OO?:+N'TO?. nit management council: 6nit management council consists of unit chief and departmental heads. Periodicit! of meetings: #eetings will be held at least once a month. The progress reports shall be submitted by the chairman of the council to the chairman of the ne%t
2 2

higher council on a monthly basis. This council may plan the strategies for coordinating the acti ities of the other councils. Macro level council: The macro le el councils is the )oint management council. The council consists of 5hairman A #:, Eunctional directors, (usiness group chiefs, Personal chiefs of units, workerHs representati e, OfficerHs representati e, 0# B,?:C. #eetings will be held at least once in an year. Periodicity "elfare acti ities!
1EL(ARE MEASURES

"elfare measures include statutory welfare measures and non. statutory welfare measures. S*(*/*&%9 4,)8(%, 5,('/%,'2 18 Washing facilities @ separate washing facilities for men and women, it is easily accessible to the work place. 28 Storing and dr!ing of clothes. 48 Sitting facilities 28 "irst aid and ambulance @ dispensary with all medical facilities and ambulance. 38 #anteen <8 Rest room $ lunch room @ there is a home meal section attached to the canteen. ?ooms are pro ided for the purpose. 78 Welfare officer @ as per factories act, there are 1 welfare officer N&# '*(*/*&%9 4,)8(%, 5,('/%,'2 18 niform @ two sets of uniforms are supplied to eligible work men e%cluding foundry. Eor the foundry workers 2 sets of uniforms are pro ided. Eor administrati e 2 sets of uniform are pro ided. 28 %ousing . 9ubsidized /uarters are pro ided for the benefit of the employees. 22; /uarters under the 9+,9 for workers. +n addition there are 42 single /uarters and 2> multi /uarters. 48 &ransport facilities . 5ompany buses and buses run on contract basis are plying through arious routes for the benefit of all the employees. ' certain amount based on the salary is deducted e ery month from the salary wages of the bus pass holder. 28 Recreational facilities: 9ocial club, arts and dramatic club, sports club, educational society 38 Medical benefit 'Eor those who are not co ered by the =9+ act, there is a medical benefit scheme. 6nder the scheme families are also eligible for treatment. Treatment can be had from the companyHs dispensary or any pro ided hospital or companyHs panel of doctors and any other go ernment hospitals. #edical e%penses are reimbursed by the company as per the scheme.
2 3

%M& (mplo!ees #onsumer #ooperative Stores ' The society has been formed for the benefits ,#T employees and is in operation since 11<3. =mployees are eligible to apply for membership on payment of ?s. 1;*. share. On re/uest any number of shares can be allotted. +t is managed by a committee consisting of nine members out of which si% are elected and three BPresident, Treasurer and a memberC are management nominees society at present is running a pro ision store, treasure store and a fare price shop.

PLANT SER'ICES
INTRODUCTION Plant ser ices department is responsible for maintaining the machines and e/uipments of the unit in optimum condition of performance so as to make them a ailable for production. The plat ser ices department is responsible for the erection and commissioning of the machines in the plant. The department is also responsible for the electrical power distribution of the entire factory comple%. The department looks after the internal transport functions and house keeping acti ities inside the factory. STRUCTURE O( DEPARTMENT

F0# BP9C

:5= B=lectricalC

:5= B#echanicalC

9r. 9r. =ngineer 9r. =ngine er 9r. =ngineer 9r. =ngineer =ngineer

:y. =ngineer "0 SCOPE "0

:y. =nginee r "0 "0

18 =rection, commissioning, repair, maintenance, reconditioning, retrofitting and pre enti e maintenance of all the machines and e/uipment used for production in the #T: and P#: plants and training center.
2 <

#aintenance of the eot cranes, )ib cranes, air compressors and a*c units in the #T: and P#: plants. 18 6pkeep of ?A# stores and spare parts planning. 28 ,ouse keeping acti ities in the shop floors. 48 #aterials mo ement in the shop floors and maintenance of internal transport ehicles and e/uipment. 28 #aintenance of power supply to the entire factory comple%. 38 #aintenance of << kG sub.station, switchgear, power transformers, and the entire distribution system. <8 #aintenance of supply distribution in colony, pump house. 78 #aintenance of internal telephone e%change and the communication system. >8 To arrange and co.ordinate contract works in connection with any of the abo e acti ities. O%&ECTI'ES To maintain the plant, machines and e/uipments in optimum conditions of performance ensuring a ailability for production. The plant ser ices department sets its measurable /uality ob)ecti es for e ery year. These ob)ecti es ensure that the machines and e/uipments are well maintained to meet the re/uirements of the customers. The /uality ob)ecti es are communicated to all the employees in the department by displaying them in the key areas of the factory. RESPONSI%ILITIES O( O((ICERS
HOD

,ead of Plant 9er ices :epartment has to ensure 18 'dministration 28 =lectrical #aintenance for #T: 48 #echanical #aintenance 28 +nternal Transport 38 P#: #aintenance 'lso ensure safety aspects as per Eactories 'ct, Eactory ?ules and =lectricity ?ules in respect of Plant and #achinery.
SECTION INHCHARGE* MECHANICAL

18 =rection, commissioning and maintenance of all machines and e/uipment, cranes, air compressors and '*c Plant in the factory of #T- and P#:. 28 Pre enti e maintenance of all critical machines and e/uipment under his control. 48 ?econditioning of all critical machines and e/uipment. 28 Testing of =OT cranes and compressors as per factory regulations. 38 #aintenance planning. <8 +dentifying training needs of employees under his control. 78 $ubrication ser ices. >8 ,ouse keeping functions in the factory. 18 =nsuring compliance with +9O 1;;1 re/uirements of the department.
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SECTION INHCHARGE* ELECTRICAL

18 #aintenance of Power supply system in <<-G 9ub station. #T- and P#: Plants and ,#T 5olony. 28 =rection, commissioning and maintenance of electrical portion in machines and e/uipment and operations of all electrical e/uipment. 48 Pre enti e maintenance B=lectricalC of all critical machines and e/uipment in #T- and P#:. 28 ?econditioning B=lectricalC of all critical machines and e/uipment. 38 9afety of all electrical e/uipment as per factory rules and electricity rules. <8 +nternal communication systems. 78 +nternal Transport ehicle electrical repair. >8 =nsuring compliance to +9O 1;;1 standards of all the acti ities in his section. PROCESS CHART (OR %REAKDO1N MAINTENANCE

?eceipt of ?e/uisition for machine repair

=nter in daily work register and allot work according to priority

Des +s work
simpleQ No

9pares Des re/uiredQ No ?ectify :efects

#achine idle closing after checking and acceptance

+s work too comple%Q No

=ntry of ma)or break downs in machine history

?efer manual * drawing consult super isor

,ire outside e%perts, if re/uired 9pares a ailableQ Des ?eplace spare No 9pares repairableQ D es

No #anufacture * procure spar e ?epair the spare and assemble

?e iew of ma)or works in EO?TN+0,T$D #==T+N0 for process impro ement

2>

@UALITY CONTROL + INSPECTION

INTRODUCTION Iuality control in its simplest term refers to control of /uality during the manufacture. (oth /uality control and inspection are en isaged to assure the /uality in entire area of production process. +nspection is a function of determining the /uality. "hen /uality becomes effecti e, the need for inspection decreases. ,ence, the /uality control determines the cause of ariation in the characteristics of products and gi es solutions by which these ariations can be controlled. +t is economical in its purpose, ob)ecti e in its procedure, dynamic in its operation and helpful in its treatment. STRUCTURE O( DEPARTMENT F0# BIC

:0#B IC

:5= B#+C

:5= BIC

:5= B+:+C

:5= BIPC

9TI

9P I

P9

P9

P9

P9

P9

"9 "0 SCOPE The /uality control department is mapped to e%ecute at the areas of incoming materials acceptance, sub.contract components acceptance, manufacturing process, assembly in process, calibration and certification of measuring instruments both in house and e%ternal, calibration and certification of all out going products of the unit. The department also conducts systematic analysis of feedbacks from both internal "0 "0

21

and e%ternal origin. The department conducts customer complaint analysis and suggests * insists the correcti e action. O%&ECTI'ES The total /uality management department sets its measurable /uality ob)ecti es for e ery year. These ob)ecti es ensure that re/uirements of the products are not only identified and met with, but also constantly re iewed and impro ed. The /uality ob)ecti es are communicated to all the employees in the department by displaying it in the key areas. The measurable ob)ecti es are set taking into consideration of the following. 18 ?educe internal losses due to scrap re)ection and rework. 28 ?educe e%ternal losses due to ser ice cost. 48 #a%imize the customer satisfaction PURPOSE 18 To ensure the conformance of the incoming items or raw materials being used for the production with the specified standards. 28 To ensure that the casting produced in the foundry department meet the design standards. 48 To ensure documentation of the /uality of the components and assembled units by inspecting or testing. 28 To ensure the testing of end products for its conformation with the specification. This is carried out by inspecting the performance of the end machine in a systematic manner as specified in the working instruction manual. 38 To ensure the documentation of all inspection report. <8 To ensure the procurement of modern testing instruments and periodic calibration of the e%isting testing facilities. 78 To ensure the /uality of the manufacturing process of the ma)or components in the unit. >8 To ensure the systematic analysis of the feed backs on performance and reliability reports of the products from inspection. 18 To ensure the systematic analysis of customer complaints for continual impro ement of the product /uality 1;8 To ensure total customer satisfaction. MEASUREMENT O( TOTAL @UALITY MANAGEMENT E((ECTI'ENESS
INSPECTION

The effecti eness of the inspection process is measured through four parameters taken from internal and customer feedback. 'n a erage e%pected alue per annum will be fi%ed by e aluating pre ious years records and strategic measures will be planned to bring down it to a lower alue than the e%pected. The measurement parameters are!. 18 No. of N5? in assembly due to the manufacturing components 28 No of N5? in assembly due to brought out parts
3 ;

"arranty cost due to failure of (OP items during the month in ?upees 18 "arranty cost due to failure of manufacturing items during the month in ?upees
@UALITY CONTROL

The effecti eness of the /uality control is measured with fi e parameters. The a erage e%pected alue per annum will be fi%ed by e aluating pre ious yearHs record and strategic measures will be planned to bring down it to a lower alue than e%pected. These parameters will be analyzed monthly in 6I5 meeting for necessary correction and pre enti e measures are taken to ensure its effecti eness. The measuring parameters are!. 18 Percentage loss of standard hours 28 $oss in rupees 48 Percentage loss in foundry product 28 ' erage warranty cost per machine 38 ' erage breakdown days per machine @UALITY POLICY ,#T #T$ is committed to 18 #aintain I6'$+TD $=':=?9,+P in all products and ser ices. 28 TOT'$ 569TO#=? 9'T+9E'5T+ON through /uality goods and ser ices. 48 5ommitment of management of 5ONT+N6'$$D +#P?OG= the /uality system. 28 To create a 56$T6?= among all employees towards TOT'$ I6'$+TD 5ON5=PT. 38 Total /uality through P=?EO?#'N5= $=':=?9,+P. @UALITY O%&ECTI'ES The ob)ecti es of the /uality management at ,#T #T$ at -alamassery are !. 7> Total production for the year 2;1;.11 . cores 7> Total sales for the year 2;1;.11 . cores 23; Operational profit BP(:+TC . lakhs +nternal losses BR of standard hoursC . ;.<R Total foundry re)ection . 2.2R ?s.1;; ' erage warranty cost per month . *. ISO F001 ACCREDITATION The ,#T $td is accredited with +9O 1;;1 certification in 2;;1. Iuality assurance offers more scope for reducing costs, rework. =%tra handling, re)ections etc and enhancing competiti eness and profitability than other management techni/ues there by considerably reducing warranty claims and premium pricing. =ffecti e /uality management system in a company will help the company to ac/uire and maintain desired /uality and optimum costs through planned and efficient utilization of the technological and material resources a ailable to the company.

31

RESPONSI%ILITIES F0# BIC is the head of the TI# department including /uality assurance and /uality management system.
DGM A@B

18?egister the ser ice reports and hand o er to the con eners of P"55' meeting for analysis 289ubmit N5? to other departments like design, planning etc. and also to the concerned department for correcti e action. 'nalysis of the standard hour lost due to such defects. 485ollection of shop N5?s, segregation and entering into main frame computer. 285ollection of internal re)ection reports of manufacturing and foundry departments and issuing the same for analysis to the concerned heads. 385ollection of assembly N5?s and gi ing the reports to concerned head for correcti e action. <85ollection of 6I5 inputs and prepares the 6I5 agenda. 78Preparation of management re iew meeting B#?#C agenda >8Preparation and distribute the minutes of meeting of 6I5 A #?#. 18#aintain rele ant record necessary for +9O 1;;1 I#9
DCE A@PB

:5=BIPC is responsible for!. 18+ncoming inspection, in.process inspection and final testing of printing machine and paper cutting machines. 285onduct of TI# acti ities like incoming inspection, in.process inspection, assembly inspection and product testing of all printing di ision products. 48Plan and maintain process re/uired for effecti e functioning of TI# departments. #easure monitor and control the process and take necessary action to achie e the planned results. 28Take positi e leadership in ol ing e ery employees of the section to achie e the planned performance and continual impro ement. 38#aintain +9O 1;;1 /uality management system procedures and documents in the section. <8:o the routine administrati e function and maintain the records 78Plan and schedule the rollers re/uired for different printing machines and ensure the a ailability of them.
DCE AMIB

:5= B#+.machine inspectionC is responsible for mechanical electrical assembly inspection, machine final testing, customer inspection, I5 of painting, machine packing and dispatch inspection of all machines of ,#T #T$ at -alamassery.
DCE A@B

:5= BI. /ualityC is responsible for!. 185onduct the inspection of manufacturing sections of the machine tool di ision and maintain section records.
3 2

#easure, monitor and control the TI# process and take necessary action to achie e the planned ob)ecti es. 18Take positi e leadership to achie e planned performance 28#aintain +9O 1;;1 /uality management system procedures and document in the section. 48:o the routine administrati e functions and maintain the records.
DCE AIDIB

:5= B+:+ C is e%pected to!. 185onduct the /uality control of the incoming materials as per the design documents * ,#T standards 28#easure, monitor and control the internal customer * user department, feed back and take correcti e actions* pre enti e actions. 48+nteract with other departments like purchase, PP# and other user departments for smooth functions of the section. 285onduct inspection at the site of suppliers, work and gi e feedback and technical guidance for impro ement. 38#aintain +9O 1;;1 /uality management system procedures and documents.

STORES
INTRODUCTION The store is the section in the organization meant for recei ing, storage and issuing the in entories. +n ,#T #T$ at -alamassery, the stores are attached to the purchase department. 9tores keep the materials in the custody against pilferage damage, deterioration and unauthorized withdrawal. Eor the con enience of handling the materials, the stores are di ided into incoming store, main store, stationery store, sub. contract store and steel yard. STRUCTURE O( DEPARTMENT

F0#
gC

: 0 # BprintingC

#anager B#aterial PlanningC 9tore officers 1. +ncoming store 2. #ain store 4. 9ubcontract store 2. 9teel yard 3. 9tationery store

: 0 # B#ach ine ToolC : 5 = B#ateri al Plannin

34

9tore officers 1. +nco ming store 2. #ain store 4. 9ubc ontra ct store 2. 9teel yard 3. 9tatio nery store

SU% SECTIONS IN STORES

INCOMING STORES

+ncoming stores recei es the materials against purchase order. The in oice and the materials are collected from the supplier at incoming store. The offer in charge of the store erifies the /uantity of the supplied goods and physical condition of the goods supplied. 'fter recei ing the items, the stores officer prepares the material inward B#+C slip. The four copies of the #+ slip are gi en to officer in charge of /uality inspection. The /uality of the material is assessed in the inspection and the record of acceptance* re)ection is marked in all four copies of the #+ slip. One slip is kept in /uality inspection department and other three slips are returned to the incoming stores. The #+ slip number is the reference for all future communication with regard to the items recei ed. The #+ slip of the items re)ected in the /uality inspection will be sent to purchase department for taking necessary action for replacement of the items.
MAIN STORE G ISSUE STORE

The two #+ slips and the materials are transferred to the main store from the incoming store. 'll the materials are tagged and stored in bin. ' software based in entory register is maintained in the main store. The arious other departments are gi en pri ilege to iew the stock position of each of the item for preparing the order form to collect the items from the main store. The items are issued based on!. 18 Material warrant! The list generated by the department to collect the materials from the main store 28 )ssue slip! (y submitting the issue slip, items of immediate re/uirement is permitted to collect e en from incoming store. +ssue slip and the balance items will be transferred to the main store from the incoming store. 48 Demand note! 'dditional items of immediate re/uirement are collected from the main store by submitting the demand note. On issuing items against the abo e documents are entered in the computer and the stock is updated.
SU%HCONTRACT STORES

The sub.contract store is the place to store items purchased under sub.contract. The sub.contract items include sheet metal work, gears work, grinding work etc. The ,#T #T$ at -alamassery recei es the subcontract items from arious firms located at 5oimbatore, (angalore, (elgaum and =rnakulam. The functioning of sub.contact store is similar to that of the main store. The items are stored in different bins and issued against demand note originated from other departments. The weigh bridge and fire proof store is controlled by the officer in charge of sub. contract store. +ndustrial o%ygen for welding purpose, acetylene, manila rope etc are stored in fire proof store.
3 2

STEEL YARD

The billets, rounds of arious diameters for making arious components of the machine tools and printing machines are stored in the steel yard. The arious /uality of steel are painted with standard colour and stored at different location. The long steel cylinders are cut to the demanded length and issued from the steel yard. The steel sections are issued against demand note.
STATIONERY STORE

The stationery items like paper, pen, books, files etc. are stored in the stationery store. The items are issued against demand note.

PLANNING DEPARTMENT
INTRODUCTION The Production planning department is the most ital link between product design and production department. This department pro ide necessary facilities and technical know how for the manufacture of the product. Production re/uires optimum utilization of natural resources, men, money, material and machines. (ut before starting the work of actual production, Production planning has to be done in order to anticipate possible difficulties and decide in ad ance how the production should be carried out in the best and economic way. The principle of Production planning lies in the statement KEirst plan your work, and then work for your planL. STRUCTURE O( DEPARTMENT

F0# B=C

:0# B=C 9r. =ngineer =ngineer :y. =ngineer "0

3 3

O%&ECTI'ES +n any business organization, production acti ities must be related to market demands as indicated by the continuous stream of the customerHs orders. Eor ma%imum effecti eness this must be done in such a way that customerHs demand is satisfied. (ut at the same time, production should be carried out in an economic manner. The process of de eloping this kind of relationship between market demand and production capability is the function of production planning and control. ROLE O( PLANNING DEPARTMENT The role of Production planning department comprises of! Production Pre Planning BPPPC and Planning =stimation BPP=C Production Planning Ordering BPPOC A Einished Part 9ection BEP9C (UNCTIONS AND RESPONSI%ILITIES 1. PRODUCTION PRE PLANNING 18 Processing design documents 28 +dentification of house manufacturing item, outside manufacturing item and brought out parts 48 Preparation of preparation layouts 28 +dentifying and intending actions for all special toolings 38 +mplementation of design alterations <8 #anufacturing special tool data 78 'ttending shop problems >8 5oordinating acti ities related to alteration re/uests 18 Preparation of documents related to assembly of products 1;8 'll data entry in computer related to PPP 118 Gerification and appro al of materials warrant 128 #aintain all data and records related to the products 148 'rranging and ensuring all /uality formats 2. PRODUCTION PLANNING ESTIMATION 18 =stimation of standard time for manufacturing and assembly operations 28 Preparation and implementation of alterations 48 :ata entry of acti ities related to PP= function in the computer 28 'ttending shop complaints regarding standard time 38 'uthorization of special time in )ob cars <8 'rranging time study 4. PER(ORMANCE MONITORING 1ING 18 'nalyze the organization re/uirement 28 :esign the structure report 48 5reate appropriate database 28 :e elop software for report 38 Prepare making list and dispatch of statements
3 <

COSTING SECTION

18 'rranging the data related standard labour, material and assembly cost 28 'ssessment of rectification or rework e%penses 48 5oordination of acti ities related to annual product costing 2. TIME RECORDE 18 #onitoring and ensuring the regular flow of )ob card 28 =ntering ticket numbers and actual hours on each )ob 48 5alculating the total standard hours for a )ob 28 Obtaining signature on )ob cards and idle cards 38 'cting as a link between PP: and shop floor. PROCESS MODEL O( PRODUCTION PLANNING SUPPLIER :esign INPUT Parts list component :rawings 'ssembly drawings 'ssembly group list Tool database Parts list 5omponent drawing :ata entry terminals Parts list 'ssembly drawing :ata entry terminals 5omponent drawing 'ssembly drawing 'll notice parts list PROCESS Preparation of operation layout and standard time for manufacturing components OUTPUT New operation layout New operation master CUSTOMER PPO #anufacturing

Tool design :esign

::5 :esign ::5 :esign

+nitiate procurement action of components*standard parts 5omputerization of planning data

$etter of intimation

PP# subcontract

Parts list file Product data base :epartmenta l order Operation layout Operation master ?ework layout

PPO PP# Tool design

+nitiate action for new special tool +mplementation of design alteration

:esign

PPO #anufacturing assembly

::5

:ata entry terminals

3 7

PROCES (LO1 CHART

9tart :esign :epartment

Production pre planning seeks clarification

N o

"hether documents as per norms

Des

Production pre planning 9tudies the document Production pre planning 5lassifies components
D e s

PPP release documents to PP# for procurement

+s any Orderly Einished itemsQ

No

PPP release documents

D e s

9ubcontract

to PP# to raise #P?

items

No

Production pre planning Prepares operation layout +ntimate foundry*PP# department

Des

5asting, forging re/uired

No

n
3 >

PPP raises :Os for special tooling

D e s

Tool design prepares special tool drawing

Production planning appro es tool design drg

re/uired
No

9 p e c i a l t o o l

PPP prepare operation master

5N5 work re/uired

No

Des

5all for preparation of 5N5 programme

Production planning

computerize documents P r o d u c t i o n p l a n n i n g r e l e a s e s d o c u m e n t s T o o

ther depts Production keeps original documents systematically 9top

3 1

SA(ETY + SECURITY DEPARTMENT

INTRODUCTION ,#T #achine Tools $td. is a company where health and safety assurance is properly maintained. The department which helps in maintaining safety has introduced many technical and methodical ways to reduce the accidents and hazards. Eor the safety of employees, some statutory tests are made for certain areas such as crane, lift, pressure essels etc. There are si%ty fire e%tinguishers placed in se eral areas for the safety of workers. STRUCTURE O( DEPARTMENT

0#

9afety officer

MAIN (UNCTIONS 18 9afety of the organization 28 9afety Promotion 48 Pre ention and precaution of fire 28 5hecking of the safety instruments 38 Eire and safety training to the employees. SA(ETY MEASURES 18 Eire hydrant network 28 9prinkler system for spraying water incase of fire 48 +nsulated sphere and bullets to reduce heat 28 :eluge system pro ided for loading and unloading areas of chemical hazard 38 9afety shower and eye wash system are pro ided <8 Eire proofing is done 78 Two generators of 1;;;k" are installed >8 Eirst aid systems are pro ided 18 Eire alarm 1;8 9moke detectors

118 128

"ork permit system is practiced. Personal protecti e system

RESPONSI%ILITIES O( SA(ETY DEPARTMENT The chief of safety department shall be responsible for the maintenance of the system related to safety management. ,e should ensure that standards of safety issued by the department are a ailable with all sections and are clearly understood
< ;

and followed. ,e should arrange for setting up safety committees to promote employeesH participation in safety measures and act as ad isor and catalyst in such committee meetings. +n co.ordination with ,?: arrangement for in plant training of all employees in safety, health and fire pre ention is another responsibility. Organize any other acti ity to moti ate and make employees aware. #aintenance of records related to accident. 9afety officer should arrange for procurement and distribution of high /uality personal protecti e e/uipment. 'rrange for the periodical testing and certification of all cranes, lifting tackles, lifts and pressure essels used in factory by outside competent agency. Officer is to conduct accident in estigation following receipt of accident intimation. Officer should conduct safety inspection of plant and machinery and arrange for correcti e action in liaison with concerned sections if any unsafe conditions or actions are found. SECURITY DEPARTMENT 9ecurity is one of the functional aspects of e ery organization. +ts main purpose is to protect the man, material Braw material, assembled parts, building and installationsC and its assets. This department consists of 5hief 9ecurity Officer, 9ecurity +nspectors and 0uards Bpermanent and contract basisC. This department has common law on the basis of security standing order and guidelines. 5onfidential matters are handled under the direct order of 0eneral #anager. The total strength of this department is 41. They are working in different shift. +ts systematic rule includes! 5ard Punching, :eployment of post details, ?egister signature. STRUCTURE O( DI'ISION

0# 59O 9r. 9ecurity 1

9r. 9D+*9O

9hift +*5 '

9hift +*5 (

9hift +*5 5

GENERAL DUTIES O( SECURITY DEPARTMENT 18 Pass 5hecking 28 Pre ention of theft 48 Eire or accident pre ention
< 1

Time keeping 18 'mbulance control 28 Patrolling 48 0ate control 28 ?egisters maintained at the gate

(OUNDRY + PATTERN SHOP

INTRODUCTION The foundry A pattern shop attached to the machine tool di ision, ,#T, -alamassery and part of engineering components business group is geared to manufacture all cast iron A spherical graphical iron re/uired for machine tools and printing machinery di ision and can also undertaken )ob orders. =stablished in 11<> with polish design, it is a semi mechanized foundry producing hea y duty gray A 90 iron casting for machine tools and printing machines using mains fre/uency induction furnaces for melting and resin bonded sand for moulding and core making. STRUCTURE O( DEPARTMENT :y. 5hief =ngineer BEPC

9E,

=ngr

9 E P

' s s t = n g i n e e r

' s s t = n g i n e e r

: y = n g i n e e r

: y = n g i n e e r

: y = n g i n e e r

, e a y m o u l d i n g 0 r e e n s a n d 9 a n d p l a n t

# e d i u m m o u l d i n g

# e c h m a i n t e n a n c e

# e l t i n g

= l e c m a i n t e n a n c e

P r o d P l a n g 5 o n t r o l

E e t t l i n g

P P =

P P #

9 t o r e s

P a t t e r n s h o p

E o u n d r y T e c h

E o u n d r y l a b

O f f i c e

< 2

PATTERN SHOP ' pattern is defined as anything used for forming an impression called mould in the sand. #ould when filled with molten material on solidifying, forms a reproduction of the pattern and is known as mould. +t is slightly larger in size than casting. 's the first stage in preparing the casting, the pattern of the castings is prepared. Pattern of casting is prepared at pattern shop with either of the materials gi en below 18 Wood:* "ood is the most commonly used pattern material as it is cheap, easily a ailable and also easy to )oin and fabricate. (ut it has a large rate of moisture absorption and also warping and wearing is high. 28 Metals:* #etals ha e the ad antage that they do not warp, are ery accurate and ha e high strength. (ut shaping is slightly difficult and it is also sub)ected to rusting and the costs are also high. 48 Plastics:* They are mostly thermosetting plastics. They are light in weight, ha e ery good surface, do not react with water or air and are not sub)ected to warping, but cannot withstand high temperatures. 28 Plasters:* The most common e%ample is gypsum cement. ?epairs canHt be easily done and it does not need skilled labour. 38 Wa+:* "a% has ery good surface finish, can be easily altered to any shape and is ery accurate. (ut it cannot withstand high temperatures. <8 Wood with metallic coating 78 &hermocoal: single use patterns are made using thermocoal +n the process of casting, a pattern is a replica of the ob)ect to be cast, used to prepare the ca ity into which molten material will be poured during the casting process. The pattern needs to incorporate suitable shrinkage allowances depending on material flow and heat transfer considerations. Pattern making is a skilled techni/ue that was highly alued in the different cultures practicing casting through the centuries. +n sand casting, the pattern is usually of wood, whereas it may be metal or other materials in pressure or centrifugal casting. The patternmaker also decides where the sprues and risers Binlet and outlet for molten materialC will be placed with respect to the pattern. Parts of the ob)ect which ha e holes or depressions are handled by inserting cores defining olumes that the material will not flow into. 9ometimes patterns may also accommodate chills, solid pieces of the final material, to enable rapid cooling, resulting in martensitic hardening in the neighbourhood of the chill. SAND MOULD MAKING PROCEDURE The procedure of making a typical sand moulding starts by placing a bottom board first either on the moulding platform or on the floor, making the surface e en. The drag mounding flask is kept upside down on the bottom board along with the drag part of the pattern at the center of the flask on the board. There should be enough clearance between the pattern and the walls of the flask ?est of the drag flask is completely filled with the backup sand and uniformly rammed to compact the sand. The ramming of sand should be done properly so as not to compact it too hard, which makes the escape of gases difficult, nor too loose so that mould would not
< 4

ha e enough strength. 'fter the ramming is o er, the e%cess sand in the flask is completely scraped using a flat bar to the le el of the flask edge. The finished drag flask is now rolled o er to the bottom board e%posing the pattern. 6sing a stick, the edges of the sand around the pattern is repaired and cope half of the pattern is placed o er the drag pattern, aligning it with the help of dowel pins. The cope flask on top of the drag is located aligning again with the help of the pins. The dry parting sand is sprinkled all o er the drag and on the pattern. ' sprue pin for making the sprue passage is located at a small distance of from the pattern. 'lso a riser pin if re/uired is kept at an appropriate place and freshly prepared moulding sand similar to that of the drag along with the backing sand is sprinkled. The sand is thoroughly rammed, e%cess sand scraped and ent holes are made all o er in the cope as in the drag. The sprue pin and the riser pin are carefully withdrawn from the flask. $ater the pouring basin is cut near the top of the sprue. The cope is separated from the drag and any loose sand one the cope and drag interface of the drag is blown off with the help of bellows. Now the cope and the drag pattern hal es are withdrawn by using the draw spikes and rapping the pattern all around to slightly enlarge the mould ca ity so that the mould wall are not spoiled b the withdrawing pattern. The runner and the gates are cut in the mould carefully without spoiling the mould. 'ny e%cess or loose sand found in the runners and mould ca ity is blown any using bellows. Now the facing sand in the form of a paste is applied all o er the mould ca ity and the runners which would gi e the finishing casting a good surface finish. ' dry sand core is prepared using a core bo%. 'fter suitable baking, it is placed in the mould ca ity. The cope is replaced on the drag taking care of the alignment of the two by means of pins. The mould is now ready to pouring. MOULDING PROCEDURE The pig iron, #9 scrap, 5arbon, manganese and other constituent materials are melted in the electric furnace. The molten metal is drawn into a ladder and transported using an o er head crane. The molten metal is poured to the mould trough the ca ity designed for the same. (ORGING Eorging is the operation where the metal is heated and then a force is applied to manipulate the metal in such a way that the re/uired final shape is obtained. This is the oldest of the metal working processes known to mankind since the copper age. Eorging is generally a hot working operation through cold forging is used sometimes. (ETTLING The complete process of the cleaning of casting, called fettling, in ol es the remo al of the cores, gates and risers, cleaning of the casting surface and chipping of any of the unnecessary pro)ections on the surface. The dry sand cores can be remo ed simply by knocking off with an iron bar, by means of a core ibrator, or by means of hydro blasting. The method depends on the size, comple%ity and the core material used. The gates and risers can be remo ed by hammering, chipping, hack
< 2

sawing, abrasi e cutoff or by flame or cutting. ?emo al of gates and risers can be simplified by pro iding a reduced metal sections at the casting )oint, for brittle materials such as grey cast iron, the gates cab easily be broken by hitting with a hammer. Eor steel and other similar materials sawing with any metal cutting saw like hack saw or band saw would be more con enient. Eor large size gates and risers we use flame or arc cutting to remo e them. 9imilarly, abrasi e cut off may also be used for remo al of gates. #ost of the abrasi e cut off can be carried out by portable grinding machines with an angled grinding head. Eor cleaning the sand particles sticking to the casting surface, sand blasting is normally used. The casting is kept in a closed bo% and a )et of compressed air with a blast of sand grains or steel grits is directed against the casting surface, which thoroughly cleans the casting surface. T The shots used are either chilled cast iron grit or steel grit. 5hilled iron is less e%pensi e but is likely to be lost /uickly by fragmentation. +n the operation, the operator should be properly protected. (OUNDRY PROCESS CHART Planning * )ob order

5hief of Eoundry

Eoundry planning Eoundry Tech. Pattern shop #oulding 5losing pouring 9and plant $ab #elting

-nock out

:ecoring

Eettling Priming

+nspection

9tore * customer
< 3

MTK MANU(ACTURING
INTRODUCTION The machine tool manufacturing department at -alamassery manufactures arious components of con entional lathe and 5N5 lathes. Eor con enience, the arious parts of the machine are di ided into two, namely, small parts and hea y parts. STRUCTURE O( DEPARTMENT

0#F0# B#achine PartsC

F0# B#achine #anufacturingC :eputy =ngineer B,ea y PartsC

F0# B'ssemblyC

:eputy =ngineer B9mall PartsC

+ndirect =mployees =mployees

=ngineer

=ngin eer

:irect =mployees

+ndirect =mployees sections .

:irect

SECTIONS IN SMALL PARTS AND HEA'Y PARTS DI'ISION The small parts and hea y parts di isons are subdi ided into

9mall parts 1 2 3 2 5 Ro!/d. No/ ro!/d. He,t tre,t#e/t Le,d. .4re9 S;i/d-e.

,ea y parts 1 %ed Le0 2 .to4: T,i3 .to4: 2 A;ro/ 5 S,dd-e

<<

Ge,r. 7 Terret48

(eed %oD

> C N C T!r/i/0 1 A44e..orie. The main operattions in the manufacturing department are gear cutting, gear shaping, taping, drilling, boring, facing, milling, turning etc. in addition, stress relie ing furnace is used for relie ing the stresses in the cast cast components. The stress relie ed components are shaped in the ha y parts section. PAYMENT SYSTEM There are 2; direct employees and 13 indirect employees are working in the manufacturing department. The salary fo the direct employees are paid based on the company rules. The ser ice of the skilled labours supplied by the labour contarctor is used in the department towrds indirect employment. The standard time for each )ob is identified and defined in the department. The indirect labour is instructed to complete the work within the stanadard time predefined for the component. The payment for manufacturing each component is computed based on the stanadrd rate and standard time. ,ence, the worker who complete the )ob before the standard time will get ad antage of payment for the standradr ime predifined for the component.

MTK ASSEM%LY
INTRODUCTION The machine tool assembly department at -alamassery assembles arious components of con entional lathe and 5N5 lathes. Eor con enience, the assembly department is subdi ided into N, assembly and 5N5 assembly. N, assembly section assembles con entional lathe and 5N5 assembly section assembles computer numerically controlled lathes. The most of the electrical components are Obrought outH items and is assembled by electrical assembly section. SCOPE The main function of the assembly department is to assemble the materials based on the rolling plan supplied by the sales department and to confirm with the performance and the /uality specified in the design documents. 'ssembly department offer the assembled machines for in house inspection. +t will also monitor at different stages of assembly to ensure that a /uality product is deli ered to the customer. PURPOSE 18To assemble the machines as per the rolling plan supplied by sales department. 28To assemble the machines to meet the design specification. 48To complete the assembly of machines as per dispatch plan. 28To e ol e systems that can adapts the change in the sales plan.
< 7

To impro e the methods and systems to accommodate the change in needs of the market. 18To coordinate pre.assembles, group assembles and final assembles to match with the assembly drawings and specifications of the machines. 28To record non.conformities and take correcti e actions to pre ent recurrence of the problem. 48To interact with the other departments like production design, tool design, purchase, sub.contract and sales for future impro ement of the machine. 28To complete assembly of machine without short comings and problems for final assembly. O%&ECTI'ES 18To iimpro e performance inde% 28To impro e efficiency of operation 48To reduce number of non.conformities 28To reduce number of customer complaints. STRUCTURE O( DEPARTMENT

0#-

F0# B=lectrical :esignC

=l ectri cal assembl y

9r. =ngineers

F0# B#PC #achine Production

'ssembly #anufacturi ng

F0# B'y. 'ssemblyC

N, assembly

F0# B##.
#achine Tool #anufacturingC

:0# BEoundry C

5N5 assembly

:5=

:5=

9r. =ngineer

9r. =ngineer LITY O( O((IECER IN CHARGE O( ASSEM%LY

<>

"ork 0roup

RES PON SI%I

9uper ising, organizing and monitoring the assembly of machines tools.

#onitoring arious acti ities in the assembly department 18'lloting and planning of work to meet the target. 28#aintian good industrial relationship and good working en iroment. 48'ssist producti ity impro ement programmes.

PROCESS (LO1 CHART 9ubcontract #anufacturing Purchase

'rrange warranty PP5 9hort warranty 0roup assembly

Non.critical assembly

5ritical assembly

+nspection

no

yes

Non. conformities
re)ected

5orrection

N5 audit

Pre.final assembly

< 1

PMK MANU(ACTURING
INTRODUCTION The printing machine department of ,#T -alamassery is a leading manufacture of offset printing machines in +ndia. P#- department is functioning ery similar to that of #T- manufacturing. The ma)or components are cast with the help of foundry department. The cast components are manufactured into printing machine components at P#- manufacturing department. STRUCTURE O( DEPARTMENT

0#F0# BPrinting machinesC

'0# BmanufactureC

'0# BassemblyC

9r. =ngineer =ngineer Bhigh technology centreC Brounds A cam, gears and rollersC

9r. =ngineer Bnon.roundsC

9r. =ngineer Bhea y partsC

=%. =ngineer

=%. =ngineer

=%. =ngineer

=%. =ngineer

'ssistant =ngineer Bproduction planningC "ork group "ork group "ork group "ork group

SECTIONS IN PMK MANU(ACTURING The P#- manufacturing is broadly di ided into three sections, namely, small parts, hea y parts and high technology center
SMALL PARTS

7 ;

The small parts are again sub.di ided into rounds non rounds and 50? Bcams, gears and rollersC. The round or symmetrical ob)ects are machined rounds. The irregular parts are machined in non.rounds cams, 0ears and rollers re/uire more accuracy, hence they are machined in separate special purpose machines B9P#C in 50?.
HEA'Y PARTS

's the name suggests, the hea y parts deals with machining of hea y parts like ! 1. "eld metal base @ The base is made by welding together the beams in the welding shop. 2. 9ide frame @ 9ide frames are mechanized, drilled bored. 4. 5ylinder :rums are machined, and grinded
HIGH TECHNOLOGY CENTER

+n this section works which re/uire high accuracy are done in certain special machines. MACHINES A'AILA%LE AT PMK MANU(ACTURING 1C 2C 4C 2C 3C <C 7C >C 1C 1;C 11C N,*5N5 $athes 0rinding #achines #illing #achines :rilling #achines ?ack cutting machine 5am milling machine 0ear hobbing machines Planning machines (oring machine 9traight be el conflu% generator =ngra ing machines

1ORK ASSIGNMENT PROCEDURE The method planning of the each component of the printing machine is de eloped by the planning department at ,#T -alamassery based on the detailed drawing issued by the design department. The planning department issues Ooperation layoutH, which details the operations, section number, machine to be used for the operation, special tools to be used for the operation and description of the component. The production planning is done by the planning engineer in the plant. The planning engineer in the plant issues to the Omanufacturing orderH for each component considering the a ailability of the machine in the plant. The Omanufacturing orderH describes the operation number, section number, machine number, standard time BT9 A TOC, termination Bstart A endC, /uantity and inspection details. The worker will recei e the design drawing, operation layout and manufacturing order of each component. The standard hour will be credited to the worker, if and only if the )ob is passed by the /uality control personnel.
7 1

PMK ASSEM%LY
INTRODUCTION The printing machine department of ,#T -alamassery is functionally di ided into two section, namely, P#- manufacturing and P#- assembly. The components manufactured by P#- manufacture section and brought out components are assembled in the P#- assembly section. STRUCTURE O( DEPARTMENT

0#F0# BprintingC :0# BassemblyC

:5= B#echanical pre.assemblyC 9r. =ngineer B=lectrical assemblyC :eputy =ngineer

:5= Bfinal assemblyC

"ork group SECTIONS IN PMK ASSEM%LY

"ork group

"ork group

The printing machine assembly is primarily categorized in to three sections, namely, pre.assembly, group assembly and final assembly
1B PREHASSEM%LY

Pre.assembly is the stage in which arious parts are prepared for assembly. This includes inspection, alignment and assembly of some delicate parts which needs high accuracy. Pre.assembly is again di ided into two sections.
,B Me48,/i4,- PreH,..e#"-$

The main parts assembled in this section are side lays and front lays, sheet pickup unit and wing gripper. 'bout three hundred components are assembled in the
7 2

mechanical pre.assembly section. The components that are assembled in the pre. assembly section are transferred to group assembly section and final assembly section.
"B E-e4tri4,- PreH,..e#"-$

'll the electrical parts and circuits are assembled here. Power supply units and control units are assembled in this section. The ma)or works carried out in this section are electrical panel preparation and cable preparation. The drawings and tools are gi en to the worker. The electrical control elements, #5(, wires are assembled in this section. The remuneration to the workers is paid based on the output measured in terms of standard time for each work carried out in the plant.
2. GROUP ASSEM%LY

+n group assembly the compound parts which correcti ely perform certain functions are assemble. The main parts assembled in this section are cylinder drums BP5, (5, +5C, inking units and feeder units.
3. (INAL ASSEM%LY

+t is the final stage of assembly. Einal assembly consists of mechanical and electrical assembly works. +t is the assembly of and on the machine frame. The parts from pre. assembly and group assembly are assembled in the final assembly to form the printing machine. The general flow of assembly in this stage is as follows! 18 (ase preparation 28 9ide frame mounting 48 (ush suiting 28 $ubrication system assembly 38 5ylinder mounting <8 :eli ery unit assembly 78 9wing gripper fitting >8 Eront lay and side lays 18 +nking unit mounting 1;8 Eeeder mounting 118 =lectrical interfacing 128 Paper feeding 148 5hecking time chart 128 Testing 138 Painting, co er mounting, dispatch

7 4

CHAPTER (INANCIAL STATEMENTS

INTRODUCTION Einancial statements are he indicati e of the financial position of the company. The balance sheet and the profit and loss accounts are the financials statements collected from the company reports. The financial statements indicate that the company is in distress.

)alance sheet
M*s +MT MT,K
Item So-rce f-nd Share holders fund Machine tool directorate account Reser es and sur!lus "oan fund Secured loans #nsecured loan $otal ..lication of f-nds %i&ed assets 'ross (loc) less de!reciation *et (loc) +a!ital ,or) in !ro-ress Machiner. and e/ui!0ents in transit and under erection 1n est0ents Current assets, loans and advances 1n entories Sundr. de(tors +ash and (an) (alances 2ther current assets "oans and ad ances Su(total Less current liabilities and provisions +urrent lia(ilities 3ro isions Mar 2005 Amount in rupees for the period Mar Mar Mar 2006 2007 2008 Mar 2009

(283,543,284 )

(394,904,025 )

(203,087,801 )

(54,775,637 )

27,434,444

81,561,459 502,142,514 300,160,689

77,677,266 565,731,841 248,505,082

68,970,807 21,320,000 (112,796,994 )

27,721,155 55,741,842 28,687,360

40,371,149 77,598,878 145,404,47 1

387,084,715 293,317,309 93,767,406

386,591,452 303,941,572 82,649,880

386,281,091 323,723,822 62,557,269 6,395,332

382,763,695 326,878,824 55,884,871 12,396,983

424,273,17 8 337,349,98 7 86,923,191 10,485,256

225,396

6,447,348

140,495,240 164,014,558 4,406,924 4,226,579 85,348,531 398,491,832

156,568,818 146,168,941 11,539,119 4,191,023 92,122,992 410,590,893

133,426,180 133,620,278 14,560,740 4,708,576 92,650,296 378,966,070

123,498,251 216,598,484 2,862,458 4,816,031 97,326,819 445,102,043

166,503,75 5 196,396,81 7 5,708,727 4,238,467 98,635,181 471,482,94 7

314,700,885 128,624,675

322,429,814 146,521,820

339,282,763 222,647,169

263,728,832 221,970,113

218,132,31 5 212,592,53

Su(total Net current assets Miscellaneous e&!enditure Profit & Loss account $otal

443,325,560 (44,833,728)

468,951,634 (58,360,741)

561,929,932 (182,963,862 )

485,698,945 (40,596,902 )

5 430,724,85 0 40,758,097

251,001,615 300,160,689

224,215,943 248,505,082

1,214,267 (112,796,994 )

1,002,408 28,687,360

790,579 145,404,47 1

7 2

/rofit 0 ,oss cco-nt

M*s +MT MT,K
Item $arnings Sales (-ross) "ess e&cise dut. $ransfer to !lant 2ther inco0e 4ccretion to ,or) in !ro-ress finished stoc) 5 scra! 1nter factor. transfer $otal ,ess 1 &2-t going( Materials 3ersonal 6e!reciation 2ther e&!enses 1nterest (net) 7RS co0!ensation (,ritten off) Rei0(urse0ent of e&!enses to 0ar)etinsu(total Less 8&!enditure allocated to 9o( done for internal use $otal /rofit before .rior .eriod ad3-stment Less !ro ision for ta&es frin-e (enefit ta& )alance carried to balance sheet 215,586,596 190,562,018 7,714,778 68,913,289 17,333,211 36,832,310 230,028,746 198,717,893 9,048,954 74,668,251 17,052,805 38,040,649 212,745,913 221,370,400 9,936,154 115,225,366 17,380,174 46,401,453 228,691,601 211,083,118 9,576,526 52,183,036 18,167,507 31,117,243 249,481,57 4 202,035,41 1 11,920,471 56,171,049 7,466,612 7,336,470 Mar 2005 Amount in rupees for the period Mar Mar Mar 2006 2007 2008 Mar 2009 547,972,26 2 51,850,655 50,292,743

515,731,393 510,198 8,797,744

544,793,834 409,324 10,322,744

553,928,675

77,980,553

565,264,246 68,647,645 9,535,670 20,038,359

28,707,756 3,026,595 556,773,686

3,075,190 2,988,322 561,589,414

(38,744,127) 1,593,824 594,758,925

(804,641) 2,031,843 527,417,832

27,259,237 719,484 574,393,07 1

125,850,767 662,792,969

125,723,529 693,280,827

183,972,119 807,031,579

18,763,048 569,582,079

18,826,710 553,238,29 7

1,878,815 660,914,154

2,383,030 690,897,797

7,670,721 799,360,858

9,562,494 560,019,585

12,720,771 540,517,52 6

(104,140,468)

(129,308,383)

(204,601,933)

(32,601,753 )

33,875,545

686,502

1,285,036

702,085

627,032 &8852285789 (

765,280

&%0458265670(

&%80596854%6(

&209580450%8(

885%%05269

7 3

CHAPTER S1OT ANALYSIS

INTRODUCTION 9"OT stands for strengths, weaknesses, opportunities, and threats. 9"OT analysis is a tool for auditing an organization and its en ironment. 9"OT analysis is the first stage of planning and helps marketers to focus on key issues. Once key issues ha e been identified, the details are fed into marketing ob)ecti es. 9"OT analysis can be used in con)unction with other tools for audit and analysis, such as P=9T analysis and Porter&s Ei e.Eorce analysis. 9"OT analysis is a ery popular tool, /uick and easy to learn. S1OT ANALYSIS O( HMT MTLK
STRENGTH

18 ,igh capacity utilization and producti ity of the plant. 28 "ell /ualified and technically skilled manpower. 48 0ood asset base. 28 0ood reputation. 38 9trong base in +ndia. <8 One of the best producers of machine tools and printing machines. 78 The company has +9O certification. >8 0ood industrial relations. 18 9trong and accepted products.
1EAKNESS

18 Eor the recruitment and selection the time delay is there. 28 Trust on +T application is not ade/uate. 48 Political interference. 28 9low sales growth of the products. 38 #arket share of the products are shrinking due to competitors. <8 Potential market is in north +ndia but all the manufacturing units are in south +ndia.
OPPORTUNITIES

18 0o ernment support. 28 5ollaboration can be made with foreign giants. 48 0ood brand image. 28 (oom in mechanization.
THREAT

18 0o ernment policies. 28 Pri atization. 48 0lobalization. 28 ,igh competition from +ndia and foreign companies. 38 0rowth of pri ate enterprises in the sector.
7 <

CHAPTER CONCLUSIONS
'd anced machine tools are ital to the realization of tomorrowHs critical technologies. +n the efforts to sur i e in this highly competiti e en ironment, companies are engaging in arious initiati es such as e%panding their market share by strengthening their sales and production bases through #A', de eloping new products and functions that will gi e them an edge o er other makers, boosting resilience against recession through production efficiency, and pro iding fee.paying after ser ices. 't present, differences in competiti eness among companies in the industry are beginning to become e ident. Predictions of economic growth for the machine tool industry are conser ati e, but positi e. ' new spirit of cooperation e%ists among industry, academia, and go ernment to de elop programs that best utilize research resources to help industry resol e problems in the way of progress. There are e en signs that training, a long neglected issue for the machine tool industry, is getting fresh attention. #eanwhile, pressures for lower cost, greater producti ity, and impro ed /uality are forcing e en the most conser ati e machine.tool users to re.e aluate their e/uipment and procedures. The machine tool industry is e%periencing both e olutionary and re olutionary change. -ey components such as spindles and motors are impro ing incrementally while researchers propose radical new designs for bearings and machine tool configurations. 9hort production runs and )ust.in.time deli ery are pressuring machine tool builders to make each machine do moreQ ,#T is the leading machine tool manufacturing company in +ndia. The company has to face tough competition from arious companies. = en in the midst of tough competition from giants it still has a uni/ue reputation of being the producer of a /uality product. = en though the product has goodwill and good demand, the record shows that the company is running on loss. There are many factors, which contributes to the loss of the company. 18 ,igh fi%ed o erhead 28 $ack of young blood in the e%ecuti e le el 48 Potentials are not fully utilizing 28 "astage of raw materials 38 5on entional #achines are used in large number in the plant <8 $ack of 'utomation The machine tool industry is set for an in estment of ?s.2, ;;;.4,;;; cores in the ne%t two to three years. = en while the sector had its limitations in meeting the domestic demand, resulting in large dependence on imports, the sector was poised for an annual growth of 23 per cent. This would help in reducing imports while increasing its edge in the e%port market through modern technology induction and marketing strategies. Though e%ports were marginal at ?s 3; core, the increasing
7 7

recognition of the sector from global companies should pro ide greater opportunities for contract manufacturing and e en )oint entures adding to in estments with latest technologies for the sector to grow faster. The future focus would be on closing technology gap between +ndian and international products through increased producti ity, achie ing higher consistency and accuracy, introducing modern safety concepts and enhancing research and de elopment efforts.

7 >

%I%LIOGRAPHY
%OOKS 'swathappa -., ,uman Resource $ Personnel Management, Tata #c0raw ,ill Publishing 5o. $td., 2;;2 =dition. 5hary 9. N, Production $ -perations Management, Tata #c0raw ,ill Publishing 5o. $td., 1111 =dition. Prasanna 5handra "inancial Management &heor! and Practice, Tata #c0raw ,ill publishers, B2;;2C. -othari 5.?., Research Methodolog! Methods and &echni.ues, New 'ge Publishers, B2;;2C REPORTS 'nnual ?eport of ,#T $td. 2;;3 . 2;;< 'nnual ?eport of ,#T $td. 2;;< . 2;;7 'nnual ?eport of ,#T $td. 2;;7 . 2;;> 'nnual ?eport of ,#T $td. 2;;> . 2;;1 'nnual ?eport of ,#T $td. 2;;1 . 2;1; 5ompany manual 1E%SITE www/hmtltd/com

7 1