Bablu Dessertation

KLN ENGINEERING PRODUCTS PRIVATE LIMITED
CONTENTS
S.NO.
CHAPTER
Page
No.
01
INTRODUCTION
03
02
COMPANY PROFILE
05
03
FUNCTIONAL DEPARTMENTS
14
PRODUCTION DEPARTMENT
15
MARKETING DEPARTMENT
22
HUMAN RESOURCE DEPARTMENT
30
FINANCE DEPARTMENT
36
04
SWOT ANALYSIS
48
05
FINDINGS CONCLUSION AND SUGGESTION
51
06
LEARNING EXPERIENCE
55
BIBILOGRAPHY
57
Objectives of Organization study:

To know the company profile and organization structure
ACHARYAS BANGALORE B-SCHOOL
Page 1

To the know the how the department working in organization Finance dept, HR dept,
Marketing
To understand the Industry and give suggestions on particular condition
Page 2
CHAPTER- I
INDRODUCTION
1.1.1 THE BEGINNING

DESCRIPTION:Land Area (sq.ft)
Built Up Area (Sq.ft)
Products Manufactured
25,000
20,000
Exhaust Systems, Air, Oil and Fuel Filters
Page 3

Our parent company was established in Bangalore in the year 1972. This unit has the ability to
produce all kinds of filter elements. This will include Air Filter, Oil Filter, and Fuel Filter both
elements as well as spin-on filter cartridges located in the heart of Bengaluru in Rajajinagara
Industrial Estate over the years due to the demands of our customer we have five locations all
within radius of about 2 to 3 kms. In these units we have the ability to control the quality from
the initial stage up to the delivery to our customer.
Filter Paper impregnation facilities are also available along with the necessary testing facilities
for every process. Press shop with big drawing facility and presses from 5 tons to 150 tons are
available. A fuel fledged plating shop and painting, powder coating facility is also available.
KLN Bengaluru produces about 2, 00,000 filters per month of various kinds. We are also
producing Mufflers for some customers. The combined strength is approximately 180 employees
and the total floor area is about 40,000 sq. ft.
2 . 1 C O M PAN Y P R O F I L E
KLN Engineering Products Pvt. Ltd., F-56, Industrial Estate, Rajajinagar, Bangalore - 560 010
was established in 1972 and has been involved
in the manufacture of Industrial
and
Automotive Filters and Muffler Assemblies.

Filters, Silencers and Air Cleaners are manufactured in six independent Units located in
Bangalore, Chennai, Alwar and Attibele with total covered area of 2,00,000 Sq. Ft. employing
400 Skilled and Non-skilled workers. The yearly sales are about Rs. 500 million.
We have
started a venture in Colombo under the name of KLN Lanka Pvt. Ltd. To produce Oil and Fuel
Filters in Sri Lanka for sale in the domestic market.
Page 4

We have time tested and quality approved Sub-contractors whose units exclusively produce
components to KLN Engg. Products Pvt. Ltd. At present we produce about 5, 00,000 Oil and
Fuel Filters, 50,000 Silencers and about 25,000 Air Cleaners per month.
Most of these
components are supplied to our customers on self certified basis.

We have been regularly re-designing and upgrading our customer products with our indigenous
Research & Development and Quality Assessments. At present due to our consistent quality and
supply the following customers have appointed us as a single source :
Tractors and Farm Equipments Ltd. Chennai

-
for supply of Air Cleaners & Silencers (Self certified till year 2007)
Ashok Leyland Ltd.

-
for supply of all their Silencers
Simpson & Company Ltd.

-
for supply of Canister Oil Filters
VST Tillers & Tractors Ltd.

-
for supply of Silencers and Air Cleaners
Caterpillar India Pvt. Ltd.

-
for supply of Oil Filter Assembly Strainers and Breathers
ELGI Equipments Ltd.

- For supply of Air Cleaners
Kerala Agro Machinery Corporation
-
for supply of Air Cleaner (They have
awarded us as the best
supplier of the year 2003-04)

Hindustan Motors Ltd.
-
for supply of Oil Filter
Eureka Forbes Ltd.

-
for supply of Air Cleaner Elements
Rane TRW Steering Systems Ltd.
Page 5

-
for supply of Hydraulic Filters in Power Steering
TAFE Access Ltd.

-
for supply of Hydraulic Pump Strainers and Other Components
Kirloskar Oil Engines Ltd.

-
for supply of Air cleaner, Oil filter and Pre-cleaner
Same Deutz-Fahr India (P) Ltd.

-
for supply of Air cleaner and Silencers
For most of the above customers we have been supplying these components for last two decades.
This talks volumes about our capabilities and performance.
In the last 35 years KLN Engineering Products Pvt. Ltd., has established a leadership in the
market for Automotive Lube Oil , Air, Fuel Filters and Silencers producing them with proven
technology. The company has been awarded the ISO/TS 16949:2002 Certificate by Kiwa
International Cert GmbH.
The company also Exports filters to various customers in Sri Lanka, Europe, Australia,
UAE, Nigeria etc.,
THE PROMOTERS
KLN Engineering Products Pvt. Ltd., is a
Bangalore
based
Private Limited company
promoted by Mrs. GITA SHETTY, Mr. PRASANNA KUMAR SHETTY and Mr. NAKUL
SHETTY. The last two Directors are qualified engineers. Together they have been able to
establish a range of products to cater to all spheres of Industry.
Our success is directly dependent upon the success of our client. Therefore we view
ourselves not as manufacturers, but as strategic partners with the clients. There is no
better way to ensure success than to become responsible stewards of our clients
reputation.
Page 6

We are uniquely positioned to provide affordable, high quality filters and mufflers that
will assist our clients in the development of their products to meet the trying demands
of an ever growing, competitive global market environment.
To this end
it is the
sincere endeavor of every one in our organization to strive for complete customer delight
by delivering products of the right quality at the right time and at the right price.
At KLN Engineering Products Pvt. Ltd., good is not
good enough. We redefine perfection
day after day, and constantly strive to become long term strategic partners with our
clients, by providing superior products and services, which demonstrate responsible
stewardship.
In this pursuit of excellence, our organization is committed to provide a spectrum of
filters and muffler assemblies of the highest quality for the use in Industry.
Our objective is to help in the creation and development of high quality Automotive and
Industrial Filters and Muffler Assemblies for use in the Asia-Pacific Region, which would
ultimately benefit the society at large.
ORGANISATIONAL GOAL
KLN Engineering Products Pvt. Ltd., will evolve into a leader in the field of Industrial
and Automotive Filters and Mufflers. This leadership will result in a commanding
market share in
domestic markets, with high customer loyalty. All this will be
achieved by the combined efforts of its satisfied Employees.
Page 7

C. VISION MISSION AND QUALITY POLICY.
Vision Statement
Product Excellence, Hard Work, and Continuous Self Improvement to encourage
individual ability and creativity and build effective teams.
To contribute for the advancement and development of the nation and improve human life
and to become market leader by adding continuously new capacities incorporation state of art
technology to produce quality KLN engineering products at least cost to the full satisfaction of
customers and to enter into related fields and maintain core competencies.
Mission Statement
To raise the companys standards to International levels.
QUALITY POLICY
To produce reliable products and achieve customer satisfaction by
Following customer specification, procedures and do timely delivery.
QUALITY OBJECTIVE
Effectively implement the documented quality system.
Train and motivate employees by providing working environment, training and incentives.
Adopt appropriate technology in production.
D. PRODUCT SERVICE PROFILE.

Automotive Filters
Industrial Filters
Silencers / Mufflers
Auto components
Page 8

1. Automotive Filters
1. Air intake systems: We are currently manufacturing an extensive range of Air Intake
Systems which includes Pre-cleaners, Intake Tubes along with the necessary mounting
accessories. We also have the ability to design from sketch the entire intake system as we
have done for several of our plans.
2. Air filters: We manufacture several kinds of intake Air Filters from flows of 10 cfm up
to 3000 cfm. The range of filters include Dry Type Paper Elements, PU Foam based
Filters and Oil Bath Air Cleaners. We have also developed a range of Hybrid Air Filters
that take advantage of the benefits of different forms of filtration to create combinations
of Oil Bath and Dry Filters in one package. This greatly enhances the life of the Dry Type
Filter Elements by taking advantage of the dust holding capacity of the oil bath media.
This is done keeping efficiency levels at minimum of 99.96%.
KLN has been awarded with Patent for a Revolutionary Design for the Cyclonic Precleaner which is currently been marketed in several parts of Europe and India.
a. Dry type
b. Oil bath air cleaners
3. Oil Filters: We have a fully backward integrated unit capable of designing and
manufacturing any kind of Oil Filter be it Lubricating Oil, Transmission Oil, Hydraulic
Oil etc. Oil Filters are manufactured using various media such as Wire Mesh, Non Woven
Fabrics, and Filter Paper etc. The filters we produce are either in the replaceable cartridge
type or also in the Spin-on variety.
Page 9
4. Fuel Filters: Fuel Filters for most of Diesel Engines utilizing media such as fabrics, filter
Paper, Crepe Paper and other edge filtration technique are currently been used by us.
These Medias are used to make either cartridge filters or spin-on filters of the highest
quality.
5. Strainers & Breathers: We have an extensive range of Suction Strainers and Retainer
Line Strainer, Crank Case Breather and Oil Filter Cap Breathers are some of the kinds of
strainers we manufacture.
2. Industrial Filters:
Panel filters
Pre filters
Railway applications
Air filters
Strainers
3. Silencers / Mufflers
Page 10

4.
Auto components: Apart from filters and mufflers we also produce range of
components for use in the automotive industry such as machined casting and brackets as
shown below
I.
S
ACHIEVEMENT AWARD
Description of awards
Year
no
01
Best Supplier Award from Simpson & Co. Golden Jubli
1990
Celebration
02
KAMCO Best Supplier Award
2003-04
03
Women Entrepreneur Award
1990
Page 11

04
Women Entrepreneur Award Karnataka State
2004
05
Best Presentation Sri Lanka Auto Part Conference
1997
06
Priyadarshini Award Federation of Indian Women

Entrepreneur
1998
07
TAFE Best Supplier Award for Overall Performance
2007
08
ELGI Best Supplier Winner
2007-08
09
Ashok Leyland Award towards QCLDM Performance

Improvement
2007-08
10
Ashok Leyland Award in Recognition of Outstanding

Performance in Cost
2007-08
11
Best Supplier Award for Overall Performance
2009
Organization Structure
MANAGING DIRECTOR
DIRECTOR TECH.
DIRECTOR COM.
Chief Executive Officer
GM Production
R&D & QC
Head
Production
Manager
Quality
Quality & Technical

Manager
Sales &
Marketing
Manager
Purchase &
Planning Manager
Sales Rep.
Accounts &
Excise Manager
H.R H.R
Manager
Purchase
Engineer
Senior Junior.
Junior.
Senior
Dispatch
Senior
Jr. Charge
Sr. Charge QC Asst. Mgr.
Asst.
Rep.
Operator
Operator
ACHARYAS
BANGALORE
B-SCHOOL
Helper
Section Operator
Operator
Hand
Hand
Operator
Engr.
Quality Helper
Tech.
Operator Quality
Helper
Accountan
t
Store
Page 12
Helper
Keeper
Shop
floor
Shop
floor
Prodn. Supr.
Machine
Shop
Sr. Charge
Hand
Accoun
ts Asst.
Shop
floor
Store
Accounting
Excise
Asst.
Prodn. Supr.
Assy. Sec.
Sr. Charge
Hand
Charge
Hand
Jr. Charge
Hand
Senior
Operator
Junior.
Operato
r
Senior
Helper
Charge
Hand
Jr. Charge
Hand
Sales
Asst.
Senior
Operator
CHAPTER III
Page 13
Helper
FUNCTIONAL DEPARTMENTS
PURCHASE DEPARTMENT:
Stores Department:
It is located very near to plant section. The entire purchase and stores department is
controlled by purchase officer. All the materials are stored systematically. The stock position of
essential materials is updated every day and for ready reference. The materials are stored in a
manner which can be identified very easily. The materials are bifurcated according to the daily
requirement, considering its essentiality; there are seven rooms where all the materials are stored
separately.
Nature of Purchase Policy:
Page 14

On credit basis and few materials are on advance payment and lesser value items on cash basis
depending upon the circumstances.
Credit System Followed:

The material payment on credit basis is normally released within a span of 30 days.
The payment for capital items will be:

On delivery of KLN equipments on site.
30% against errection & commissioning.
10% payment against bank guarantee for a period of one year.
Method of Purchasing:
1. For certain things key directly move towards manufacturers.
2. For certain things, they directly move for floating the enquiries for the concern suppliers.
3. In some cases, they directly move for government agencies.
Purchase Procedure:
By making enquiries, obtaining quotations, by receiving quotations, comparison and
placed before purchase committee after giving due consideration about the rates quality,
suitability of required material. Then issuing purchase orders to the suitable party in accordance
with the terms/conditions of the organization.
Issuing of Material Procedure:

The materials are issued according to the requirement of various sections against the
indent authorized by the superior officers.
Page 15

Procedure:
They receive the purchased materials from various suppliers or from government
agencies or from manufacturers and they count it and they enter it in purchase register. Then they
enter in stock register. They issue it to various sections where they are required. These issues will
be made on indent basis. In the indent the requirement of the materials section for which it is
required along with the signature of the indenter, authorization by superiors is essentially found.
STORES MANAGEMENT:
PURPOSE OF STORES:
Stores play a vital role in the operations of a company. It is in direct touch with the user
department in its day to day activates. It is having functions of stores.
1.
To receive raw materials. Components, tools, equipments.
2.
To provide adequate and proper storage.
3.
To meet the demands of the consuming departments.
4.
To minimize obsolescence, surplus and scrap through proper condition preservation and
handling.
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5.
To highlight stock accumulation, discrepancies and abnormal consumption and effect control
measures.
6.
To ensure good housekeeping so that material handling, material preservation. Stocking, receipt
and issue can be done adequately.
7.
To assist in verification and provide supporting information for effective purchase action
1. PRE PURCHASE SYSTEM
Initiating the purchase through requisitions, selection of suppliers, obtaining quotations

and evaluating them, are broadly the pre purchase activities.
Requisitions: The department concerned, in need of a material, usually present a completed
requisition made by the department head. However, it has to be countersigned by the Unit
Head. In any organization, only a limited number of officers are empowered to countersign
the requisitions as it amounts to authorization of the expenditure. Purchase department must
have the list of such officers to check the validity of the purchase requisition Normally; there
is a delegation of authority in authorizing a requisition. This is expressed in terms of the
financial limits up to which an officer can authorize a requisition
This form contains
i.
Department requiring the material.
ii.
Requisition reference number.
(b) Traveling requisitions: This document is widely used for requisitioning items that are
required frequently in bulk quantities over a long period. During each stage, a purchase order is
initiated. Factors such as specification and supplier details are written permanently and
provisions for entering date, quantity required names of requisitioned and authorizer are
available. This reduces paper work and eases the operation.
Standardized clerical system can be devised and the bulk of the work can thus be efficiently
handled. For repeat ordering, this is the ideal procedure.
This form consists of
a.
Material description
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b.
Part number
c.
Annual usage.
d.
Name of the supplier.

I Enquiries many organizations often invite suppliers to quote rates for supply of materials. For
this purpose a standard format is used which is similar to a purchase order in an aspects except
that word such as this is only a request for quotation or this is not a purchase order are
printed so as to ensure that the supplier does not consist the request for quotation as a firm order.
ORDERING SYSTEM
Having selected the supplier and the rates agreed, the buyer places the purchase order on
the supplier, expressing the term and conditions. The purchase order once accepted becomes a
binding contract. The details that are normally furnished in a purchase order are listed below.
a. Purchase order reference number (which will be quoted in all subsequent follow up
measures pertaining to that order).
b. Description of the materials and detailed specification.
c. Quality required and delivery schedule.
d. Price and discounts.
e. Shipping instructions.
f. Location where the materials are to be shipped (usually the name and address if the
buyer).
Post purchase System
This includes follow up procedures, receipt and checking invoices.

(a)
Follow up procedures. Follow up implies commitment of time and money and

therefore it has to be selective. Certain priorities could be established for follow up.
Only critical items require continuous follow up. Depending upon the movement. Items
can be classified into fast moving and slow moving. For fast moving items, follow up
can be initiated whenever the stock level depletes to one months consumption For slow
moving items also similar norms can be established A few organization also have
decentralized inspection facilities for on the spot inspection and acceptance. Purchase
Order (P.O) status reports are generally prepared so that selective follow up is ensured.
Page 18

The status report can be printed part number wise or supplier wise for suitable follow
up.
(b)
Receipt: A systematic record of the consignments received, carrier details and

descriptions are to be maintained in chronological sequence, to help in quick
identifications of materials so that inspection can be arranged prior to acceptance. Many
organizations have a separate central receiving section for this purpose. As mentioned
earlier. A copy of the purchase order is sent to the central receiving section for reconciling
purposes.
(c) Invoice Checking. The supplier normally sends the invoice for the materials supplied
for payment. It is essential that this invoice is matched against the receipt details, quantity
accepted and rejected so that payments can be made within the stipulated period
Discount period or provisions be made which will keep in funds planning. Normally
invoices are sent to the buyers finance and materials management department is
necessary.
Inventory Control:
It is a systematic control over purchasing, storing and consumption of materials so as to
maintain a regular and timely supply of materials at the same time avoiding over stocking. It is
being achieved in the KLN by systematically organizing the procedures and activities relating by
Purchasing
Properly storing
Issuing as per requirements
Keeping record on consumption of material

Systematic overall record keeping
Inventory Management:
In the KLN, inventory is begin managed systematically giving importance to the
requirement of materials to keep continuous production process to avoid over stocking of
Page 19

materials. These inventories are stored in a systematical manner and maintained with regular and
timely supply of materials. The process of purchasing, reception and inspection of material
storing and issuing and consumption of materials, record keeping are systematically organized in
the KLN. All these processes are prejudiced on routine basis by the representatives of chartered
accountants and monthly as well as yearly consumption of overall materials are being interpreted
in the financial statements which will be certified
Objective of Inventory Control:
Ensuring timely availability of right type of keep the continues production process.
Avoiding overstocking of materials to ensure minimum capital investment by removing

unnecessary blockage of funds.
Economy in buying and controlling expenses by organizing ideal order quantity of each
item.
Prevention of leakage, deterioration of waste material by arranging systematic, suitable

storage facilities by fixing allowable waste percentage.
Material Requirements Planning:

According
to
requirement
the
material
forensuring
continuous
systematic, suitable storage facilities by fixing allowable waste percentage.
Based on the requirement and nature of material
Value of the materials
Availability and sources of materials
Means of transportation and its cost
Storage capacity and facilities
SWOT Analysis of Production Department

Strengths:
Page 20
Abundance availability of paper, which is the important raw material for KLN.
The use of German Technology.
Consistent and compressive quality.
Weaknesses:
Process is too low.
Opportunities:
To introduce paper packing to cater to the overall demand and market situation.
Threats:
Concentration of paper, deposits may result imbalances in supply and demand of engineering
products cause unsteady prices in Southern region.
MARKETING DEPARTMENT
Marketing is a social and managerial process by which individuals and groups obtain
what the need and want through creating, offering and exchanging products and value with
others.
President
Sr. General
Manager
Dy. General
Manager
Page 21

Depot Staf
Site Staf
Excise
Staf
Marketing Process
The marketing process consists of analyzing marketing opportunities, developing marketing
strategies, planning marketing programs and managing the marketing efforts.
1. Analyzing market opportunities
The marketing department is continuously involved in analyzing the long-run opportunities
in this marketing for improving the units performance. These people recognize the abundance of
opportunities in the bargaining business field. The building of the future is fast becoming a reality
and high investment in this area is likely to continue in coming decades. This wide and constant
market and increasing demand for engineering products is great opportunity for KLN to launch new
products into market and to capture regular market with good quality of products.
Marketing department is responsible for monitoring of commercial market and its

components and the related technology trend never less than of competitors and the related
technology trend never less than of competitors activities for forged materials. It is responsible
for the following activities:
Market analysis and planning
Product analysis
Competition analysis
Determining customer satisfaction
Marketing department is also responsible for other internal department such as operation,
finance, purchasing etc.
Pricing and order administration
Regular customer interaction
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Handling non technical customer complaint
Definition of commercial aspect of new supplier contract
Price updating
Authority and responsibility of marketing manager
Contract review and resolves the differences with customers
Customer complaint handling
Follow-up and review payment collection
To coordinate for new product development activities
To study, enquiry and reply regarding feasibility
To coordinate for product price finalization
2. Developing marketing strategies

KLN Engineering products Pvt ltd has decided to target the home segment, Govt. and
private customers, bulk purchases. It involves a differentiating and position strategy for the target
market. This strategy includes the excellent service, pricing and distribution and networking
policies.
3. Planning marketing programs

Marketing programs includes marketing mix and marketing allocations. It includes 4Ps such
as
Product
- Customer needs and wants
Price
- Cost to the customer
Page 23

Place
- Convenience
Promotion
- Communication
4. Managing the Market segment

Organizing the market resources and then implementing and controlling the market plan. The
company has built a marketing organization that is capable of implementing a market plan,
Marketing research, Setting Advertising, Customer servicing and so on. As marketing department is
fully automated and having talented personnel who work around the clock to achieve organizational
goals and objectives.
Functions and objective of marketing department

Marketing department has to perform following function and objectives with brief
explanation.
1)
Price fixation
Based on prevailing marketing conditions
As per C.M.A guidelines
As per with the other main competitors
2)
C.M.A meeting
Sales promoters and the Branch Managers to review the price attend local C.M.A
meetings
The company executives and attend senior level C.M.A meeting.
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3)
Sales Promoters
Sales promotion and market survey.
Price fixation.
Appointment of authorized stockiest.
Timely disposal of stocks.
Timely delivery of material to dealers.
Timely collection of payments.
Collection of confessional forms.
4) Appointment of stockiest procedure

Interested parties are selected and dealership application forms are issued.
Minimum monthly sale guarantee assurance is taken from the stockiest.
Application form, partnership deed, sales tax registration copies are collected at the time
of appointment. Dept In charge, area manager and sales promoter of that area should
forward application form.
Fixation of transportation rates
Sealed quotations are invited from transporters.

Agreements are on quarterly basis/half yearly.
Comparative statements are prepared for approval.
After approval agreements are entered with transporters with penalty/bonus clauses (if
any).
The billed rates are inclusive of unloading charges.
All transportation rates/contract copies are given to account department for passing of bills.
Page 25

Transportation Bill passing procedure
The transportation bills are passed on weekly basis.
The transportation bills are checked thoroughly with the acknowledgment received and advice
is sent to account for releasing payment.
Shortage/Damages if any reported, the cost of the same is deducted from the transporters
bill and credited to sales expense account.
Centralized Invoicing
Depot sends challenges to site twice a week.
On receipt of challans, checking is dine immediately and fed into computer and invoices
are sent Depots/parties.
When the loaded trucks report back the excise invoices are issued based on the data from
booking file and handed over to the truck driver immediately.
Loading
Co-ordination with packing plant personnel, for destination wise loading of engineering
products grade wise as per depots requirement.
Frequent weight checking of loaded Engineering products is being carried out at packing
plant to ensure accurate loading. In case of any variations it is being informed to technical
person for attending the same.
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Dispatches
Monthly Engineering products dispatches are planned at the site Road based on the required
Engineering products grade wise by all the depots/orders on hand.
All the depots are informed well in advance about monthly Engineering products
dispatches planning.
SWOT Analysis of Marketing Department

Strengths:
Brand name of KLN.
Quick delivery after placing order.
Weakness:
There is no proper distribution within Karnataka.
There is no proper Electronic media publicity.
No meeting with the dealers to buy their loyalty.
Lack of good incentive scheme for dealers.
Opportunities:
Increase the installed capacity and penetration in important market segment.
It can become market leaders in engineering products industry.
Going for contacts and Govt. projects and receiving good and huge order.
Page 27

Threats:
High competition among engineering products companies.
Threat of cut throat competition.
Advertising and publicity by the competitors may reduce the market share of the company.
Human Resource Department:

HRM is planning, organizing, directing and controlling of the procurement, development,
compensation, integration and maintenance of people for people the purpose of contribution to
organization, individual, social goals.
Page 28

HR needs to be given a strong emphasis, as it is the quality of human factor in his
organization, which determines its effectiveness.
Objectives of Human Resource in KLN ENGINEERING PRODUCTS PRIVATE LTD
To attract and retain best available young talent in the country in areas like
Finance, marketing and personal.
To maintain effective coordination between HRM and other departments.
HRM department helps in motivating the employees in attaining individual

Goals and in retune will lead to attain the organizational goals.
A qualified applicant for specific type of job.
To ensure the above objectives by eras of a systematic scheme of centralized

Recruitment this will be regular and effective.
Scope
The recruitment of professional trainees in professional areas like finance, marketing,
personnel etc. induction level of executives that is PS 3 for centrally pooled requirement of units.
Recruitment of senior executive at level of corporate cadre like PS 7 as per need of unit.
Various Departments under HRM
Page 29
TIEHW N R S R DE A T M LU IA N S B I T N L
RDSDF A HE E E RL V MP A EA E T L R IN O O T
ME
R GI I A & L
TP N M E
Establishment Section
Establishment section of KLN engineering products private limited involved with the
activities like recruitment, selection, promotion, and performance appraisal record of day-to-day
activities as well as manpower adjustments. The selection is basically involved with
establishment activities.
Recruitment and Selection
It is process of selection for prospective employee and stimulating and encouraging them
for job in an organization. Selection is process of putting right person to right job according to
job specification of organization.
Recruitment is a generating of application or applicants for specific jobs. Recruitment

consists of two main processes:
Page 30

1. Identification of vacancy of staff and workman
2.
A stock of a recruitment source
Internal sources
External sources
i.
Circulation, advertisement in group

companies.
i.
ii.
By internal promotion.
ii.
iii.
By internal or group units/company

iii.
transfer/deputations.
iv.
By internal trainees and apprentice.
v.
Extension of service.
iv.
Advertisement in leading news

papers.
From consultants and placement
agencies.
Form waiting list/shortlist and with
references of VIPs, known
concerned.
Applications from applicants directly
received from time to time.
Table-3: Recruitment Sources
Selection
Selection will be done at the interview after complete verification of application blank with
passport size photo affixed, original certificates, with regard qualification, experience last salary drawn,
references etc., attached assessment form to be filled up and signed by the interview committee. If
selected the salary offered, grade, trainee or probationer or direct employment, designation etc., offered
should be mentioned for final approval of the president (unit head) and the Sr. President, in case
required.
Placement
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Depending on clear vacancies in the concerned departments/section
on the basis of sanction strength the candidates selected on the basis of
qualification, experience, age, professional requirement, etc., are placed with
proper designation in the respective department initially on probation of one
year. Fresher graduate/diploma holders and ITI and other or taken as trainees
on stipend per month.
Test conducted for trainees.
Oral test.
Medical examination.
Verification of certificates and reference.
Induction.
A circular is issued to all departments and notice is also displayed in
case when Sr. Officers and above or newly appointed induction booklet to
study the plant and organization is issued to new entrants.
Training and Development

The company organizes training programmed on need basis regularly
for fresher and for existing employees. The type of training is as under:
a. On the job training for all categories of employees.
b. Learning new techniques through internal training or by external agencies.
c. Refreshers training and training for promotion in the organization.
d. Remedial training and general training in safety, discipline, culture, rules
and regulations of the company, statutory matter and procedure.
Internship training
This sort of training is important to employees who are transferred
from other units, fresher or to the employee promoted in new jobs. This is
advanced vocational training system.
Page 32

External training
Every year before March annual training calendar is prepared after consulting all the
concerned departmental heads on various need based training programme on different aspects
like technical, marketing and of HRD administration to develop skills and latest technical
knowhow and same is approved by the management.
Promotions.
Procedure.
Career path.
Welfare Department
Employee Motivation
With the provisions of following incentive
Attendance Bonus
O.T. allowances etc
The employees are motivated to discharge more work. Rewards are given to the outstanding
technical employees.
Page 33
Employee benefits:
Attendance Bonus (30 days)

Working during holidays single wage will be paid and for the officers compensatory
holidays will be given.
Provident fund facility as per the P.F. Act.
Employees deposit linked insurance scheme.
Group gratuity for employees having more than 5 years experience.
Bonus will be paid with respect to bonus act.
Festival advance given to employees Rs.2, 000/- and it will be recovered in 10 equal
installments.
T.A. / D.A. will be paid as per service rules.
Training and development programme facilities to all the employees.
Festival advance given to employees Rs.2, 000/- and it will be recovered in 10 equal
installments.
T.A. / D.A. will be paid as per service rules.
Training and development programme facilities to all the employees.
Leave Benefits:
Earned Leave of 30 days in a year.
Earned Leave can be available five times in a year.
Half payment leaves for 20 days in years.
Casual leave of 15 days in a year.
Retirement Benefits:
Pension benefits from PF authority
Gratuity benefits as per gratuity act.
Page 34

Employees group linked insurance scheme (EGLIS) contribution among along with
interest.
INDUSTRY RELATION
In KLN, Industrial relations deal with either the relationship between the state and
employers and workers in an organizational themselves. This helps to resolve from any
kind of disputes like: misunderstanding, difference of opinions, (or) conflict that arises
between an employer and his workmen. Therefore a high level of understanding and
positive relationship between them, can alone lead to the achievement of organizations
objectives. Hence industrial relation plays an important role.
SWOT Analysis of HR Department.

Strengths:
Use of man power is less.
Experienced the labour efficiency.
Weaknesses:
High Labour turnover ratio.
Lack of Skilled Labours.
No equal treatment to the stockiest for their lifting.
No professional management.
Less staf in management field.
Opportunities:
The company is ofering Apprentice and Internship.
Threats:
Recessionary trend likely to follow after the boom.
Page 35
FINANCE DEPARTMENT
VP of Accounting
Department
Personal
Secretar
y
Sr.
Manager
Manager
Account
Officer
Accountant
Figure: Finance Department structure
Financial management vows to the application of general management principles to a particular

finance operation. It guides investment where opportunity is the greatest producing relatively
uniform hard-sticks for judging most of the firms operations and projects. Certain uniform norms for
financial consideration have to be setup to enable an enterprise to judge its activities properly.
Financial management is the dynamic involving or making of day to day financial decision in a
business of any size. Financial management however, should not be so planned as to contribute to
project making activities for finance cannot be generated without profits.
Financial management is the dynamic involving or making of day to day financial
decision in a business of any size. Financial management however, should not be so planned as
to contribute to project making activities for finance cannot be generated without profits.
Financial management unlike other functional areas of a business related both to the
company as on operating entity and to the interest of the owners.
Page 36

The finance department is the life blood of the organisation that can be controlled by the
organization by making an more or less, Increase or decrease of the production etc.,
Functions
The function and responsibility of the finance and account wings include the following:
Determine the financial resources required to meet the corporation operating and capital
expenditure program.
Forecast how much of there of these requirement would be met by internal generation of
funds by the corporation and will have to be obtained outside the corporation.
Develop the best plans to obtain the external funds needed.
Establish and maintain a system of financial control governing the allocation and use of
funds.
Analyze the financial results of all operation, report the facts to management and make
recommendation concerning future operations.
Carry out special studies with a view to reduce costs, improve efficiency and
profitability.
The above are dealt with detail here under:
a. Feasibility study and project reports

In regard capital expenditure related to new project or expansions feasibility studies and detailed
projects reports are to the prepared by the management and these should be examined by the
financial wing to ensure that the capital expenditure proposed would be in further once of the
objectives for which the corporation has been established, that the expenditure proposed to be
incurred is reasonable and the expenditure would result in ensuring reasonable profit.
b. Budgeting
Long term operating expenditure budget concerning a period of 10 years indicates the
likely profit/loss earned during period. Preparation of long term capital expenditure budget
covering a period of about 5/10 years and advise the arrangement in regard to the timing of the
incurrence of capital expenditure.
Page 37
Capital expenditure budget is in regard to the capital expenditure that is expected to be

incurred during the year. The preparation of the arrival operating budget, the budget returns that
flow out of the comprehensive budgetary system in operating.
c. Cash flow statement

Based on the long term budget the financial wing would prepare a cash flow
statement indicating the inflow and outflow of cash during the period similarly it will also
prepare a details of monthly cash flow statements for the year based on the annual budgets.
d. Working capital
It will also make an assessment of the working capital requirement for the fiscal year and
advice the management regarding the sources of financing the working capital requirements.
e. Purchase
Finance wing will be associated on a matter relating to purchase of equipments, machinery
etc. it would also lay down suitable procedures for purchase to ensure that adequate control is
exercised over such purchase and that there are no un-economic purchase.
f. Pricing policies
It will also advice the chief executive on pricing policies followed in the organization in
regard to the selling price of power inter departmental issues charging of materials to jobs
contract.
g. Service conditions
It advices the management on all service matters having financial implication such as
scale of pay clearness allowance bonus gratuity etc.
Page 38

h. Accounting matters
General finance and accounts being is in charge of allows, budgets and internal audit of
the corporation. It shall maintain adequate records of assets, liabilities, and transaction of
corporation see that adequate internal audits there of the correct and regularly made and
recommended and enforce duly approved methods and procedures where by the business of the
corporation with the maximum safety efficiency and economy. It shall examine all proposed
disbursements from the corporations funds and approve in advance payments required take
made in accordance with the prescribed administrative and accounting requirements and
procedure.
i. Stores account
Finance and account wing responsible for the maintenance of adequate system of store
accounts. It would assists the management in determining the minimum, maximum and ordering
levels of various items and also be responsible for the introduction and for operation of the ABC
method of control with a view to reduce the inventory holding to the optimum level.
It would also be responsible to ensure that the verification of stocks of various items of
store is carried out by ensuring:
1.
That physical stock of selected items is verified every day.
2.
That each item of stock is verified at least once in a year.
3.
That the surprise elements in regard to stock verification are maintained.
4.
Internal audit: it will organize effective internal audit departments and will
process the reports submitted by the internal audit and place the same before the chief
executive.
5.
Annual accounts and audit: it will ensure that the annual accounts are
prepared in time according to provisions of law. It will attend to all matters relating to the
statutory audit and the audit by the comptroller and audit general.
6.
Tax matters: it will be responsible for attending to all tax matters relating
the corporations.
Page 39
j. Reporting
The following reports are taking submitted to the management
1.
Resources employed.
2.
Summary of cash flow for the quarter.
3.
Forecast of cash flow for the next quarter.

4.
Capital expenditure incurred during the quarter compared with

sanctioned amount, budget estimates etc.
5.
Any other report prescribed by the undertakings relating financial

matters.
k. Head Office Finances and Account Wing

The finance and accounts wing of the head office is divided into the following sections:
Establishment
Bills and banking
Management information system and financial concurrence
Assets accounts
Book keeping and compilation
Budget and finance
Provident fund, Pension and Recruitment benefits.
Page 40
SWOT Analysis of Finance Department

Strengths:
Fast accounting system and immediate problem solving.
Strengthen the internal control procedures of Books and Accounts.
Weakness:
Lot of fluctuations in the prices i.e. no stable pricing policy.
Very rigid in managing finance.
Opportunities:
Financial reserve likely return.
Threats:
Sustainable financial Backing
Page 41
Page 42
7 s MODEL
Page 43
7 s MODEL
Page 44
7 s MODEL
Page 45
Page 46

APPLICATION OF 7 S MODEL
The 7-S-Model is better known as McKinsey 7-S. The two persons who developed this
model are, Tom Peters and Robert Waterman, have been consultants at McKinsey & Co at that
time. They published their 7-S-Model in their article Structure Is Not Organization (1980) and
in their books The Art of Japanese Management (1981) and In Search of Excellence (1982).
Perhaps the most important element, which trigged the interest of American managers in
the issue of culture, was the emergence of Japanese Competition. As Japan began to take a
leading role in one basic industry after another, the question of cultural difference emerged as a
casual factor to explain Japanese superiority. There were those who signal the deterioration of
sound cultural values as the central reason behind the slipping of America as a worldwide
industrial power. They suggest that Americans have gotten too fat, demanding too much from
society without imposing any equivalent internal demands of themselves, and that they seem to
have a lost a sense of pride and self-satisfaction derived from a job well done. When contrasted
with their Japanese counterparts, the gap seems to be enormous and still growing. Somehow,
there is basic erosion of standards of excellence that seems to undermine the basic fabric of
American society. This is a message of gloom, and the popular press, as well as the academic
writes, when contrasting American and Japanese management styles have been repeatedly
conveying the message in recent years. The most notable exception, which might be the cause of
its enormous popularity, has been the book In search of excellence by Peters and Waterman
(1982), where they emphasize the lesson to be derived from Americas best run companies.
Paradoxically, it is interesting to observe that the best compliment that can be made to an
American firm is that it resembles a Japanese company. Mc. Kinseys 7S model reflects upon the
framework used to evaluate the best managerial companies.
The model starts on the premise that an organization is not just Structure, but consists of
seven elements:
Page 47

The Seven S architecture
1. STRUCTURE
Definition of Structure:
Structure describes the hierarchy of authority and accountability in an organization these

relationships are frequently diagrammed in organizational charts. Most organizations use some
mix of structures- pyramidal, matrix or structured ones to accomplish their goals. A structure is
the formalizing of relationships, roles and responsibilities in order to recognize and perform
work.
In simple terms, structure is a pattern in which various parts or components are interrelated and inter-connected. So, organization structure is a pattern of relationships among various
activities and positions. Because various people hold these positions, the structure defines the
relationships among people in the organization
Organizational structure performs in the following major functions:

The overall responsibility for the safe and efficient operations at the location shall rest with
the location in charge. However all the officers working at the location shall have the following
functions as entrusted by the location in charge from time to time.
Implement all the statutory requirements related to receipts storage and dispatch of
product.
Impart adequate training to all subordinates enabling them to perform their duties
satisfactorily.
Develop and maintain good relationship with all customers and other connected agency.
It undertakes a wide variety of activities through devices such as departmentalization,

specialization, division of labor of delegation of authority.
Page 48

The manager of the company is in a position to control the activities of different department
on the organization. For taking the entire problem he meets the knowledge of about both
technical and managerial knowledge.
The employees of each department is responsible for the activities done in their respective
departments and answerable and reporting to the department manager.
In the organization the department manager comes under the top level management.
Under these position technical officer, sales officer, accounts officer and administrative officer
are present they comes under the middle level management and other workman, security guards
and clerks comes under the lower level management of the organization.
KLN engineering product private ltd, each department is interlinked with other
departments has to maintain a good control with other departments
2.
STRATERGY
It refers to the set of decisions and actions at gaining a sustainable competitive advantage.
OBLIGATIONS
Towards customers and suppliers:

To provide prompt, courteous and efficient service and quality products at fair and
reasonable prices.
Towards suppliers:
To ensure prompt dealings with integrity, impartiality and courtesy and promote ancillary
industries.
Towards employees:
Develop their capability and advancement through appropriate training and career
planning.
Page 49

Towards community:
To develop techno-economically viable and environment-friendly products for the

benefit of the people.
Encourage progressive indigenous manufacture of products and materials so as to

substitute imports.
To ensure safety in operations and highest standards of environment protection in

its manufacturing plants and townships by taking suitable and effective measures.
3 . SYSTEM
System refers to all the rules, regulation and formal procedure and informal that complement
organizational structure. It includes buying and selling, planning and control system, capital
budgeting system, recruitment, training and development schemes.
In KLN Engineering product private ltd there is a separate department to plan and
control the buying activities in this department the organization has to account for how much raw
materials the trucks have to bring. The buying is planned according to demand of the granite
stone in the market.
Recruitment is the process of searching prospective employee and the recruitment of
employees are carried out at the head office, Bangalore in the human resources department. In
case of vacancies
Or in case of appointing from outside, the In KLN Engineering product private ltd recruit
people through consultancies, employment exchange and sometimes it will be published in news
papers. They conduct interview. The qualified suitable candidates selected to the right job.
4. STYLE
Page 50

Style of the organization is the evident through the patterns of actions taken by the member of
the top management team over a period of time. Reporting relationships may also convey the
style of the organization.
5. STAFF
People processed used to develop managers socialization process
ways of shaping positive values of management cadre ways of introducing
your recruits to the companys ways of helping to manage the concern of
the company.
6. SKILLS
Skills refer to an organization dominant capabilities and competence with employee.
Every organization needs to has well trained and experience people to perform the
required activities. A skill is an individual ability to translate knowledge into action. The
aim of organization is to provide quality to their customer satisfaction, consistent quality
to all. The organizations success depends on the skills of the employees.
7. Shared value
The company produces good quality products for which it has also received an award. The
company has signed a memorandum of understanding (MOU) with M/s Shougang international
trade and engineering corporation, Beijing (China) for technological tie-up for setting integrated
granite plants of which is yet to start its operation.
Page 51
CHAPTER-IV
SWOT ANALYSIS
Page 52

STRENGTHS:
Low cost of Production.
Brand name of KLN.
Consistent and compressive quality.
Enduring advertisement with low budget.
Quick delivery after placing order.
Fast accounting system and immediate problem solving
Low power cost
KLN Engineering is produced by dry process which gives good quality and economy.
WEAKNESSES:
High Labour turnover ratio.
There is no proper distribution within Karnataka.
There is no proper Electronic media publicity.
Lack of Skilled Labour.
No equal treatment to the stockiest for their lifting.
No meeting with the dealers to buy their loyalty.
Lot of fluctuations in the prices i.e. no stable pricing policy.
No professional management.
Lack of good incentive scheme for dealers.
Very rigid management.
Less staff in management field.
Page 53
OPPORTUNITIES:
It can become market leaders in engineering products industry.
New innovative ideas development quick hardening engineering product.
Increase the installed capacity and penetration in important market segment.
To introduce paper packing to cater to the overall demand and market situation.
If possible build own infrastructure as transport vehicles.
To take the advertisement of boom and reap more profits, keeping customers happy and
satisfied.
Going for contacts and Govt. projects and receiving good and huge order.
THREATS:
Higher capacity in southern region.
High competition among engineering products companies.
Threat of cut throat competition.
Strategic and wide advertisement and publicity by the competitors.
Fixing competitive prices of face the competition.
Withering away of stockiest because of carrot shown by other companies.
Likely entry of other foreign firms due to liberalization.
Recessionary trend likely to follow after the boom.
Slowing down of infrastructural process like building, bridges etc.
Page 54
CHAPTER- V
FINDINGS CONCLUSION
AND SUGGESTION
Page 55
FINDINGS:
Studying McKinseys 7s model with respect to KLN Engineering products private ltd.
Gave me a great exposures to learn about the company. I learned about the working of the
company in the 4 weeks.
It was my privilege to be there and learn different things about the company. The staff
of the company were very much co operative in helping me out in my project as well as in
updating the manual.
I also gained knowledge about the manufacturing operations of the company through it
was not a part of the project. The HR officer and the legal advisor were very co operative enough
and helped me in every aspect. Here I came to get a close view of the working environment of
the corporate world.
My one month in plant training in KLN Engineering products private ltd was a
wonderful and knowledgeable experience in my life. In this time of training I came to know how
a top level management works with participation of lower level management.
Page 56
CONCLUSION:
Based on the analysis and discussion made in the study, the overall performance of the
company in the recent years in every satisfactory. Compared to its past records it has a good
control over the market and has been able to utilize the opportunities and it strengths to topmost
level. It has achieved a new mile stone by conserving the energy at all leaves so that the energy
consumption to be as a low as possible. The company is achieving increase in Engineering
products. With the establishment of the third unit the company is going to achieve more
production and fittest competitor in the market.
Environmental improvement has been a
continuing mission with KLN Engineering products private limited.

All of us, by exercising these common habits, can make our organization excel
continually and can create a place where we will enjoy working and feel proud to be a member
of this Group.
Page 57
SUGGESTIONS:
The following are the suggestions that are as follows.
The company should be liberalized in providing leave facility to

employee because it afects the morale of employee.
The company should formulate strategies which can play an important

role in the mental and physical development of the employees.
The worker should be give performance based incentives or increments

regularly based on their performance. Which will motivate them and in
turn boost up their morale and increase in productivity?
From the discipline point of view it should follow strict rule like curbing
the drinking habit at the work place.
Training and development programme should be designed for the

overall development of workers. External consultant should be brought
to train the workers as they will be more serious and enthusiastic at
that time and ready for change.
Increase the marketing network by which sales can be increased.
The company should be grow like a global market.
Page 58
STUDENT
LEARNING EXPERIENCE
Page 59
STUDENT LEARNING EXPERIENCE

At the time of one month training I came to know:
How managerial function work in an organization.
What is the importance of maintaining the relationship with the workers
How theoretical concepts are applied in organization practically.
How planning, organizing, staffing, leading, controlling, all this management
functions in an organization.
On the first day when I visited the HR manager gave me clear idea about what I have to do in
that organization. And also clear all my regarding in plant training, after that he gave me some
inputs about the company, that help me to get basics idea about that organization, their
operations, products and all. From all these I understood that how KLN Engineering product
private limited is different from competitors.
Page 60
BIBLIOGRAPHY
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KLN ENGINEERING PRODUCTS PRIVATE LIMITED

HUMAN RESOURCE DEPARTMENT

FINDINGS CONCLUSION AND SUGGESTION

Objectives of Organization study:

ACHARYAS BANGALORE B-SCHOOL

KLN ENGINEERING PRODUCTS PRIVATE LIMITED

ACHARYAS BANGALORE B-SCHOOL

KLN ENGINEERING PRODUCTS PRIVATE LIMITED

1.1.1 THE BEGINNING

ACHARYAS BANGALORE B-SCHOOL

KLN ENGINEERING PRODUCTS PRIVATE LIMITED

in the manufacture of Industrial

Automotive Filters and Muffler Assemblies.

ACHARYAS BANGALORE B-SCHOOL

KLN ENGINEERING PRODUCTS PRIVATE LIMITED

components are supplied to our customers on self certified basis.

Tractors and Farm Equipments Ltd. Chennai

Ashok Leyland Ltd.

for supply of all their Silencers

Simpson & Company Ltd.

for supply of Canister Oil Filters

VST Tillers & Tractors Ltd.

for supply of Silencers and Air Cleaners

Caterpillar India Pvt. Ltd.

for supply of Oil Filter Assembly Strainers and Breathers

ELGI Equipments Ltd.

for supply of Air Cleaner (They have

awarded us as the best

supplier of the year 2003-04)

for supply of Oil Filter

Eureka Forbes Ltd.

for supply of Air Cleaner Elements

Rane TRW Steering Systems Ltd.

ACHARYAS BANGALORE B-SCHOOL

KLN ENGINEERING PRODUCTS PRIVATE LIMITED

for supply of Hydraulic Filters in Power Steering

TAFE Access Ltd.

for supply of Hydraulic Pump Strainers and Other Components

Kirloskar Oil Engines Ltd.

for supply of Air cleaner, Oil filter and Pre-cleaner

Same Deutz-Fahr India (P) Ltd.

for supply of Air cleaner and Silencers

KLN Engineering Products Pvt. Ltd., is a

Private Limited company

ACHARYAS BANGALORE B-SCHOOL

KLN ENGINEERING PRODUCTS PRIVATE LIMITED

good enough. We redefine perfection

domestic markets, with high customer loyalty. All this will be

achieved by the combined efforts of its satisfied Employees.

ACHARYAS BANGALORE B-SCHOOL

KLN ENGINEERING PRODUCTS PRIVATE LIMITED

D. PRODUCT SERVICE PROFILE.

ACHARYAS BANGALORE B-SCHOOL

KLN ENGINEERING PRODUCTS PRIVATE LIMITED

ACHARYAS BANGALORE B-SCHOOL

KLN ENGINEERING PRODUCTS PRIVATE LIMITED

ACHARYAS BANGALORE B-SCHOOL

KLN ENGINEERING PRODUCTS PRIVATE LIMITED

Best Supplier Award from Simpson & Co. Golden Jubli

KAMCO Best Supplier Award

Women Entrepreneur Award

ACHARYAS BANGALORE B-SCHOOL

KLN ENGINEERING PRODUCTS PRIVATE LIMITED

Women Entrepreneur Award Karnataka State