AN INSTITUTIONAL TRAINING UNDERGONE IN

MUTHU METALS CORPORATION

MADURAI-01

Submitted

by

RAMYA.V
(911816631018)

II Year MBA

A PROJECT REPORT

Submitted to

OAA MAVMM SCHOOL OF MANAGEMENT

(Approved By AICTE & Affiliated to Anna University, Chennai)
MADURAI-625301

In partial fulfilment of the requirements

for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY
CHENNAI 600 025

June - August - 2017

 BONAFIDE CERTIFICATE

This is to certify that AN INSTITUTIONAL UNDERGONE IN MUTHU

METALS CORPORATION is a bonafide work of Mrs. RAMYA.V (Reg.

No.911816631018), a final year student of Master of Business Administration who prepared

the report under my supervision and guidance. Certified further, that to the best of my

knowledge the work reported herein does not form part of any other report or dissertation on

the basis of which a degree or award was conferred on an earlier occasion on this or any other

candidate.

( Mr. K. Vinoth Kumar )(Dr. K Alagusundaram)

AssociateProfessor Principal/Director

Sumitted for the University Examination (viva-voce) held on 29/06/2017

Internal Examiner External Examiner

 DECLARATION

I hereby declare that the project report entitled A

STUDYONPERFORMANCE APPRAISAL WITH SPECIAL TO

MUTHU METALSCORPORATION submitted in partial fulfillment

Of the requirements of Anna University, Chennai for the award of the

Department of Master of Business Administration has been carried out

under the guidance ofMr. K Vinoth Kumar,Associate Professor, OAA

MAVMM School of Management and it is my original work which

does not from part of the award of any other

Degree/Diploma/Associateship/ Fellowship or other similar title to any

candidate of any University.

RAMYA.V
(Reg. No: 911816631018)
 ACKNOWLEDGEMENT

I take this opportunity to express my sincere and heartfelt thanks to the management
and staff of our college for providing all possible guidance and support without which the
project work would not have been completed successfully in time.
I am thankful to the Head School of Management studies ANNA UNIVERSITY,
Chennai for granting me permission for this work and the help extended to me during the
course of this project.
I express my sincere thanks to Mr. K. VinothKumar ,for his valuable guidance and
assistance through stimulating discussion during the course of this work.
I express my profound to Mrs. M. Prabakaran(HR manager)MUTHU METALS
CORPORATION MADURAI. I want to give my sincere thanks to his kind advice and
guidance that had made my project successful. Many of the sound advices have been well
taken by me and it is largely due to his patience that I was able to achieve my goals
successfully.
Finally, last but not least I would like to express my heartfelt thanks to you beloved
parents for their blessings, my friend/classmates for their help and the successful completion
of this project.
 Abstract

The Performance appraisals are essential for the effective management and
evaluation of staff. Appraisals help develop individuals, improve organizational performance,
and feed into business planning. Providing feedback to the employee with the aim of
motivating that person to eliminate his deficiencies and or continue to perform better. It
aims at providing data to managers with which they may judge future job assignment
and compensations.
Company stresses the fact that the existing systems of performance appraisal do
not serve any of these functions effectively but focus on outcome of behavior.
Compensation packages which includes bonus, high salary rates, extra benefits, allowances
and pre-requisites are dependent on performance appraisal.
The criteria should be merit rather than seniority. With the evolution and development
of the appraisal system, a number of methods or techniques of performance appraisal have
been developed. The importance among them are presented.
Employee believe in quality doing the talking to our customers. And even today,
most of our raw materials are imported from the best manufacturers in the world enabling us
to deliver you the best jellies in India. Company added lollipop to our FLUBBERS range
in2012 and the product has also received good acceptance in the market.
The amount of research regarding the topic Performance Appraisal is so vast. The
topic is literally not new; it is as old as the formation of the organizations. Before the early
1980s, majority of theoretical studies emphasized on revamping the rating system within the
organization.
Sampling is the process of selecting a sufficient number of element from the
population. Sampling design is to clearly define set of objectives, technically called the
universe to be studied design used in this study is simple random sampling.
It is implemented from 39% of the respondents are said the performance appraisal
made only on quarterly basis, 15% of the respondents are said that the performance
appraisal has been made only on yearly basis performance appraisal has been made on
any basis in the study.
INDEX

CHAPTER CONTENTS PAGE NO

1. Introduction

Objectives

2 Company Profiles

Organization Chart

3 FUNCTIONAL DEPARTMENT

3.1Production

3.2 Research & Development

3.3 Stores / Distribution

3.4 Transport

3.5 Finance

3.6 Personnel & HR

3.7 Marketing

4 Findings

5 Suggestion

6 Conclusion
CHAPTER 1

INDUSRY PROFILE:
The Muthu Metals Corporation ,one of the core industries in Madurai,is more than a
century old when the first integrated steel plant was established by Tata Iron and steel in
1907.India is currently the worlds fourth producer of crude steel and is expected to become
the second largest producer by 2015

Steel industry derives its demand from other important sectors like infrastructure, aviation,
engineering construction,automobile,pipes and tubes etc.thus its intense integration with other
important industries makes it a strategic sector for the governments as well

The indian steel sector enjoy advantages of domestic availability of raw material and cheap
labour. Recent mining restrictions have put a strain on its availability.This abundance has
been providing a major cost advantages to the domestic steel industry.

Steel plays a vital role in the development of any modern and emerging economy.The per
capita consumption of steel is generally accepted as a yardstick to measure the level of socio-
economic development and living standards of its countrymen.as such,no developing country
can afford to ignore the steel industry.

Therefore,through this conglomeration of government,policy makers,industrial leaders and

potential investors from india and abroad is to discuss new growth drivers that are
revolutionizing the indian steel industry and assess the challenges and opportunities
associated with new technologies along with identifying new growth frontiers.

The beginning :

The modern iron and steel industry in india owes its origin to the grand vision and
perseverance of jamsetiNusserwani Tata .The TATA iron and steel company limited (Tata
steel) was registered in Bombay on 26th august 1907.The construction of the steel plant was
then taken up in earnest with the first stake being driven in February 1906.R.G.Wells,an
American with steel plant construction experience took over as the General manager in
1909.Success came when the first blast furnace was blown in on 2nd December 1911,and
the first ingot rolled on 16th February 1912

The company was originally constructed for capacity of 1,60,000 tonnes of pig iron,1,00,000
tons of ingot steel,70,000 tons of rails,beams and shapes and 20,000 tonnes of bars,hoops and
rods.The plant essentially consisted of a battery of 180 non- recovery coke ovens and 30 by
product ovens with a sulphuric acid plant,Two blast furnaces(each of 350 tons per day
capacity) one 300 tonne hot metal mixer ,four open hearth furnaces of 50 tonne capacity
each,one steam engine driven40-inch reversing blooming mill,one 28-inch reversing
combination rail and structure mill with re-heating furnaces,and one 16-inch and two 10-inch
rolling mills.besides ,the steel works had a power house, auxiliary facilities and a well
equipped laboratory. The cost of the plant as erected came to around rs.23 million.

LIBERALISATION OF THE INDIAN STEEL SECTOR :

The important policy measures, which have been taken for the growth and development of
the indian iron and steel sector are as under:

In the new industrial policy announced in july,1991,iron and steel industry among
others,was removed from the list of industries reserved for the public sector and also
exempted from the provisions of compulsory licensing under the
industries(Development and regulation) act 1951.

With effect from 24.5.92,iron and steel industry was included in the list of high priority
industries for automatic approval for foreign equity investment upto 51%.This limit
has since been increased to 100%.

Pricing and distribution of steel were deregulated from January,1992.At the same time,it
was ensured that priority continued to be accorded for meeting the requirements of
small scale industries, exporters of engineering goods and north eastern, besides
strategic sector such as define and railways
 The import duty on capital goods was reduced from 55% o 25%.Duties on raw materials for
steel production were reduced.These measures reduced the capital costs and
production costs of steel plants

Freight equalization scheme was withdrawn in January 1992.however,with the coming up

of new steel plants in different parts of the country,iron and steel materials are freely
available in the domestic market.

Levy on account of steel development fund was discontinued from April,1994 there by
providing greater flexibility to main producers to respond to market forces.

1. INTRODUCTION:

1.1company profile -:

The temple city of Madurai houses a world class foundry Muthu Metals Corporation., a
versatile company which laid down its roots in the memorable year of 1961 as a small scale
industry. From 1999 Muthu is forging ahead to dedicate itself exclusively to the valve
industry. Muthu has excelled itself in the faultless supply of high performance valve castings
ranging from 5 kg to 6000 kg that have a maximum pressure rating of 5000 PSI and up to 36
in size. Muthu is a sought after supplier of high quality steel valve castings manufactured in
Carbon Steel, Alloy Steel, Stainless Steel and Nickel Alloy for the Oil, Gas, Thermal and
Hydro Power, Nuclear Power, and Chemical industry.

The company is now a world class certified supplier of steel castings to reputed valve
manufacturers both in Domestic and in International Arena. The companys dedication and
focus is reflected in our strengthening competitive position and growth. Muthu is emerging as
a customer-centric entrepreneurial company focused on sustainable value creation for all
stakeholders.

Muthus current production capacity is 5,000 Tonnes of steel castings per year. Muthu has
emerged as one of the effective and reliable steel casting foundrys in the World for the
manufacture of critical alloys and castings for critical applications. It operates 3 plants with a
diverse capacity. A new machining facility also has been added for the supply of machined
castings to Valve manufacturer .
Managing director mrs.Arunachalam since 1972 graduated from Annamalaiuniversity in
1972.bachlor degree in mechanical engineering.he did MBA in Madurai kamarajar university
in 1988 ,DOB-31-12-1947 ,his career started muthu In 2007 3rd generation
entrepreneur,master industry engineering at university of muthu. MBA FINANCE at east
western university Cleveland in 2001

tools is a landmark in the industrial scenario of Madurai.The roots of this reputed plant were
laid down in the year 1961by late AR.sevuganchettiar,a first generation ins

1.2 Vision -:

Safe, Environmentally friendly and dependable World Class Steel Foundry manufacturing
machined valve castings for severe and critical application in complex materials.

1.3 Mission-:

Continually delight the customer with quality and on-time delivery for
forging longterm sustainable win-win partnerships

Continuously invest and develop people with core skills to improve

competency and organizational involvement

Enhance capabilities and invest in new technology to improve

productivity and supply finished products for severe and critical
applications

1.4 objectives:-

To know customer focused result in high customer retention

To know Marketing focus to keep the changing trends and the need of
the customers.
 To know A professional approach that translate knowledge and data
into implements as per market needs

Quality:

Proven track record to meet global quality standards

Demonstrated capability with production of Valve Casting for

Nuclear Power

Applications:

Well integrated efficient quality systems to monitor quality

assurance of products

Solidification simulation to analyse integrity of casting and

reduce defects

Strong & Integrated Documentation control Service

Sustainable process to support the development of over 20 new

castings per month

Customer focused planning & execution for reliable delivery

Competitive Lead Times

Product range :

One stop shop for sourcing with a wide casting weight range
5kg to 6000 Kg

Diverse product portfolio and high Alloy casting capability

 Exotic and special materials manufacturing Organization

Experienced management team dedicated to deliver sustained

value creation

Continuous improvement to develop world class manufacturing

Logistics:

International airport with well connectednesspassenger flights

Well connected with both air,rail,road and sea transportation

CHRONOLOGICAL DIARY:-

Training Department Visited Operation Observed & Skill

Undergone Developed

03.06.2017 HR Department The Trainer gave orientation about

the functions of the metals
05.06.2017 HR Department HR Executive gave a introduction
about the HR department
06.06.2017 Service Department Visit to the service department

07.06.2017 Marketing Department Learn to the products how to

introduced
08.06.2017 Marketing Department Learn to the products how to
introduced
09.06.2017 Marketing Department Product marketing works

10.06.2017 Sales Department Learn to the products how to sales

12.06.2017 Sales Department Ordering details to approach

13.06.2017 Sales Department Collecting the products for selling

work
14.06.2017 Finance Department Learn to the financial works

15.06.2017 Service Department Collects the customer needs

16.06.2017 Sales Department Exchanging goods about the details

17.06.2017 Sales Department To learn different kinds of sales

information
19.06.2017 Sales Department Sales works are handled

20.06.2017 Marketing Department To learn marketing action

21.06.2017 Finance Department How to handle in the cash to finance

22.06.2017 Sales Department Customer action

23.06.2017 Sales Department To know the customer needs &

wants
24.06.2017 Service Department To provide the service

26.06.2017 Sales Department Sales works to handled

27.06.2017 Sales Department To arrange the Sales product

28. .06.2017 Sales Department Sales product to be packed

29. .06.2017 Sales Department To Sales the product

30.06.2017 Sales Department To Sales the product

1.5 ORGANIZATION STRUCTURE :

1.6 COMPANY ACHIEVEMENTS :

o Muthu developed agitator casting in CF8 material level-

2 in radiography for Indian satellite instant by ISRO

o Supplied casting for cryogenic value casting

o Customer approved for international engineering

procurement

o Value casting

1.7 AWARDS :
 Highest productivity in foundry DR.velappan award for the year 2002-
2003

2 district award to have been awarded to the managing director

MEDAL regional export excellence award for the year 2006-2007

Latest news

:
ARUNA has the best of breed people,e-process and technology
and has invested heavily on R&D

Safe,environmentally friendly and dependable world class steel

foundry manufacturing machined

Muthu has best R&D infrastructure

Muthu Metals have launched their revamped site in muthu

metals corporation

1.8 GOVERNANCE :

The Director ,The manager and The supervisor all have responsibilities in the work
place .directors are responsible to the business,customers,employees,suppliers and
shareholders.

Directors :
 The directors create the plans. Directors work sincere they have generalist
experience,or sometimes more importantly good contacts Managing

Director :

The managing director is the head of the organization and controlling the
organization .Their work is often described as getting things done with or through
people

Senior manager:

Senior manager make top level decision in an organization. Their decision is to

make detailed skilled judgment .

Middle manager:

Middle manager organize and control the resources of an organization within

guidelines

Junior manager:

Junior manager is usually concerned with the short term supervisory activities
making sure that order get out on time and resources .

Supervisors :

Supervisor are also working sincerely in this organization they are people who
know how things should be at ground level . All must wear ID cards compulsorily
shoes and uniform neat and clean ,supervisor want to check all of these

All must wear helmet then only they allow bike inside an organization otherwise
parking is outside the organization.

1.9 ADMINISTRATION, DUTIES AND RESPONSIBILITIES:

 The role of administration department within an organization is to process all of
the admin and documents for the rest of the company. There are many different
departments that need to have different things done with their admin. The main
functions of an admin department of an organization are:

To process paperwork for external suppliers.

To process paperwork and information for internal people.

This could be anything from looking after the basic bills to
the internal post.

Looking after the internal communications so that all

members of the organization are aware of what is going on
within the organization.

Organizing any deliveries or suppliers coming into the

offices for the day for any reason.

Arranging company extras such as company cars and any

hotels for business trips that may be needed

The admin department will be responsible for ensuring that all records that pass
through the department are filed correctly and can be found and referred to if and
when they ever become necessary.

These will be records of purchases and expenses from different parts of the
company and their approval from the finance department. There will also be
different confidential information about employees that are owned by the Human
Resources department. Thesetoo will be stored and used by the admin department.
This is an important department for any company and they work across all
departments and with all kinds of work

1.10 LIST OF PRODUCTS -:

Value type Component

GATE Body, Bonnet, Yoke, Wedge / Disc, Yoke Lock Ring,

Gland, Retainer

GLOBE Body, Bonnet, Funnel

CHECK Body, Disc, Hinge, Hinge Holder

PLUG Body, Plug, Cover

CONTROL Body, Bonnet

BUTTERFLY Body, Disc

ANGLE Body

BALL Body, Adaptor, Connector, Ball, Trunion

Y-GLUBE Body

1.10 ORGANIZATION STRUCTURE -:

CHAPTER 2
Departments:

2. HUMAN RESOURCE DEPARTMENT

2.1 HUMAN RESOURCE OBJECTIVES:

To known about HR work selection process, recruitment,training attendance,leave&

permission etc

Implementing a human resources strategy

Key reason why a strategy is necessary and in particular explore 3 critical areas:

1. Risk management
2. Recruitment
3. Retention

2.2 REGULAR ACTIVITIES:

The management deals with control of men,money,material and machines. company is taking
much interest on maintaining relation with labour force. The main responsibility of this
department is

To provide welfare measures

To recruit employees.

To train and place them in job

The following are the kaizen 7s process that is followed in the company

Seiri-sort out and eliminate un necessary things

Seiton-systematic arrangement of the things

 Seiso-clean the place and machine well

Seiketsu-maintain atmosphere

Shikkari- not to give up system at any situation

Sahou- doing everything in a good manner

2.3 DEPARTMENT STRUCTURE:

The subject matter of this department concern with

Recruitment,selection,orientation,attendance, leave and permission,wages,performance
appraisal,training and development,gratuity,pension scheme,factory act employee provident
fund,safety and welfare activities ,counselling and motivation.

Selection :
Selection Is based on resume .After selection, interview is conducted attend and based on
their skills candidates are selected according to their knowledge based on the resume
checking work, human Resource manager must select the candidates.

Orientation:

New employee and an introduction of The company terms and

condition,rules,procedure,policy arrangement,safety,health and security are they spend each
day in each department after orientation The candidates are ask to submit a report then the
department Faculties must provide feedback.

Attendance:

Human Resource department maintain attendance register and submit register in head office
every end of the month.even for training student attendance maintaining in company Salary is
calculated based on attendance all the employee must wear id card when they enter and leave
no one can enter the company without signing the register.

Leave and permission :

25 days leave casual leave-10days

Privilege -8days

Remaining-7days

Employee 8hours permission in a year

Sick leave more than 2days means medical letter want to submit .if employee take more
than salary deducted

9days holiday provided to national leave

Wages :
In Muthu Metals Corporation ltd co confirm staff based on the no of days working,they
provide wages to the employee .overtime wages are provided .labour once in a week

. ESI are deducted from employee wages

Performance appraisal :

Appraisal are conducted once in a year like increment,promotion,transfer is given based on

performance appraisal .

Job knowledge,initiative,mental attitude, quality of work, co-

operative,commitment,attendance,dicipiline,healthcondition,cleanliness,adjustment ,multi
skills,equipment handling,emergency management,repairing knowledge ,trouble shooting
,cost conscious ,decision making,time management and stress management.

Training and development :

Training orientation training ISO,safety,department related value stream, housekeeping,

inventory ,repair and maintenance,supervisor skill development management information
system and quality control.

Employee 125

Manager _ 50

Staff-40

No of worker 60

No of temporary worker-20

Training 3month training on the job ;Monetary and nonmonetary benefit satisfied by
personal department .All the employee having good relationship between management and
employee.

Behavioural training :
 On identification of the employee behavioural needs they will be given appropriate
training,the training may be in house by HR personal or through outsourced professional as
per need.

Workers :

Apprentice is one who learn a skilled trade without getting any salary .They work in industry
to learn and get a real life experience.

Age limit minimum 18years

Maximum 58years

Wage period :

Calendar month basis unskilled,semi-skilled, skilled,higher skilled,employee salary average

only 6000 rupee

Over time- more than 48 hours .overtime wages will be at rate of twice of the basic wages

Over time not more than 50 hours

Employee insurance act 1948,allowance-4.75% ,bonus as per 1965 act.

Special incentive :

5yrs-1000rs ; 10yrs-2500rs ;15yrs-4000rs

Bonus and incentives:

Bonus and incentives very useful tools to motivate and reward employees when they do their
job well. The right incentives ensure employees maintain high level, employee them to stay
loyal to the company

To determine what a company seeks to address and what its seek to attain.there is a slight
difference between bonus and incentives bonus is generally monetary in nature while an
incentives can either be monetary or no monetary.

In determining correct bonus and incentives scheme it is important that with the goals and
objectives of the organization. A company has to take into account the nature of business,the
area operates in the competition its faces and core strength.

Leave policy :

5days casual leave attend personal and urgent requirement. Employee will given10days for
festival and government holiday, leave date put on the notice board and communicated to the
employee.

Working environment :

Proper lighting and ventilation in working area.

Tea break,lunch break are provided in the company itself

Rest room

Uniform and shoes

 Education allowance is given to the worker children

Pick up and drop up facility are also available

No pollution area neat and clean

Drinking facility are provided

Canteen facility

Recruitment :

Recruitment considered to the manager and higher officials are been recruited by the HR
manager

The other labours education as not upgraded as 10th pass is basic

2 .4 Promotion policies :

1.Every organization should formulate a sound policy regarding promotion of its

employees.uniform distribution of promotion opportunities throughout the company.equal
opportunity for promotion should be provided to all categories of job in all the department

2.Suitable training and development opportunities should be provided so that employee can
prepare themselves for advancement

3.Detailed records of service and performance should be maintained for all employee

4.Policy should be fair and impartial

5.A suitable system of follow-up, counselling and review should be established. All
promotions should be on a trial basis and the progress of the promoted employee should
bemonitored to ensure that all is going on well. Counselling and guidance should be provided
to the employees rejected for promotion.

6.Appropriate authority should be entrusted with the responsibility of taking decision on

promotion. The final authority to sanction a promotion should rest with the concerned line
executive. The human resource department should only suggest the names along with their
records

2. 5 TERMINATION, TRANSFER AND RETIREMENT POLICY:

Termination:

1.Workers:

When they want to resign from the job, they can immediately terminate their wok by giving
termination letter to the HR department.

2. Employees:

When employees want to terminate the job, they want to give termination letter to the HR
department before 15 days itself.

Transfer:

Transfer will be done once in a year and assign new job for workers. Multiple training will be
given to the workers for to sustain in the growth of the organizsation. It is simply said to be as
job rotation.

Retirement:

After the completion of 58 years of age, retirement will be given to the employee in the
organization
2.6 GRIEVANCES HANDLING PROCEDURES:

Informal stage :

Attempts should always be made to resolve matters by informal approaches.

First stage:

A member of staff who believes they have a grievance arising from their employment should
raise the matter in writing with their supervisor, indicating that they seek recourse to the
grievance procedures. If the supervisor is involved in the grievance then the next level of
management should be approached.

The supervisor should arrange a formal meeting, normally within 7 days, in order to consider
the grievance. After due consideration the supervisor should then give their response in
writing within a further 7 days and advise the member of staff of their right to have their
grievance heard at the next stage of the procedure.

Second stage:

If the matter is not resolved the staff member may refer the matter in writing to their head of
department, having notified their supervisor. If the head of department is involved in the
grievance then the Department of HR should be consulted for advice.

The head of department [or nominee] should arrange a formal meeting normally within 14
days in order to consider the grievance. After due consideration the head of department
should then give their response in writing within a further 14 days and advise the member of
staff of their right to have their grievance heard at the next stage of the procedure.
Third stage:

If the matter is not resolved the staff member may refer the matter in writing to the Director
of Human Resource Management, having notified their head of department.

The Director of Human Resource Management [or nominee] should arrange a formal
meeting, normally within 14 days, in order to consider the grievance. After due consideration
the decision of the Director of Human Resource Management [or nominee will be given in
writing within a further 14 days and the member of staff will be advised of their right to have
their grievance heard at the next stage of the procedure.

Final stage:

If the matter is still not resolved, the staff member may ask the Registrar & Secretary to
convene a Grievance Panel. The Grievance Panel will normally be composed of a Pro- Vice-
Chancellor, as chair, a senior member of staff, and a member of staff nominated by the
relevant trade union

none of whom have prior involvement in the case. In the case of a staff member who is not a
member of a trade union then a member of the University Human Resource Management
Committee will be nominated by the Director of Human Resource

Management [or nominee]. The Director of Human Resource Management [or nominee] and
the grievant will be required to agree the composition of the Grievance Panel.

The Department of HR should arrange a formal meeting, normally within 21 days, in order to
consider the grievance. After due consideration the decision of the Grievance Panel will be
given in writing within a further 14 days. The decision of the Grievance Panel will be final.

The Department of HR will service the Grievance Panel, including recording a summary of
the findings.
3.PURCHASE DEPARTMENT :

3.1 PURCHASE ORDER :

A- process of material purchase order

B-process of AMC order

C-process of calibration order

D-process of pattern order

E-process of service order

F-machine order

MATERIAL PURCHASE ORDER PROCESS :

Indents received after approval of all level

Selection of supplier based on capability and availability this is a separate process but it is
done during the time.

Purchase order selection based on conformity of price,quality and delivery time urgency

If existing price is maintained it will be routed through direct purchase order if yes price is
changed,it will be routed through no
If Yes If No

Direct raise purchase order enquiry letter

Quotation received by over

phone,mail,fax.

Quotation entry

Comparatively chart

Purchase order

Purchase order verification and approval

3.2 signing of order:

All orders are approved by either asst manager and DGM materials

After approval,print out is taken and signed by the person who prepared the order and
assistant manager and DGM material (all orders)

Below rs.50,000 approved by DGM material

Above rs.50,000 approved by DGM finance for second signature

All the raw material,alloys,welding rods and capital order are sent to ED for secong
signature.
3.3 process of service order:

Service indent,material will be sent to the service provider with the gate pass, enquiry
letter,quotation received,negotiation service order

All the service order are approved by assistant manager and DGM material,

and machine order

3.4 FILLING OF ORDER :

Capital,revenue,service,AMC, and calibration..

3.5 PURCHASING PROCEDURE :

The purchasing process for companies breaks down into eight clear steps. In the first step the
company identifies a need, for which the answer is the purchase of a product. The final step is
the execution of a purchase contract. The steps in between build an organized, informed
process that results in the company purchasing the right product for the need from a qualified
supplier whose product is the most durable for the price.

Identify Need

Identify the need for a product purchase. For example, a lawn company wants to offer
mowing services to its clients. To do this it needs to purchase a mower. Thus, the need to
make a purchase of a product, a mower, is identified
Select Specific Product

Select a specific product to meet the need. For example the lawn company must select which
type of mower from the many push and riding varieties on the market meets the companies
need for a mower the best.

Appoint Purchase Team

Put a team together to manage the purchase process, including finalizing the list of required
technical specifications for the product and the bid solicitation and award process.

Specify Technical Specifications

Arrive at a list of required technical specifications for the product to ensure it meets the
companies needs. Budget for Purchase

Establish a budget for the purchase relying on the range of prices identified by the research
done in Step 3.

Research Potential Suppliers

Research the various product types that fit the need along with their suppliers to identify the
most durable model at the best price. If the lawn company decides to purchase a riding
mower, research is conducted into which brand and manufacturer provides the most durable
product for the price asked.

Solicit Bids

Solicit bids from the manufacturers and suppliers of the identified product that meets all the
required technical specifications.
Award Contract

Select a supplier from the bids submitted and award the purchase contract.

3.6 Inventory Management:

In stores department the spare parts for machineries are purchased. Usually spare parts of the
heavy machines are purchased from the industry where they purchased the machines. The
spare parts that are required to the machineries come to the notice if the storekeepers through
the supervisor or maintenance officer. In the note of the storekeeper, required spare parts
have been signed by assistant manager and spinning master and this form is known as
purchase indent.

In case the department does not contain the required parts, then they will make arrangements
to purchase those materials and this procedure is said to be purchase requirement. After
receiving the letter of requisition from the parties, the storekeeper writes a letter to the
parties. Usually they have good knowledge about machinery. Thus it helps them to purchase
goods and fine spare parts along with long period of guarantee. Then they receive quotation
from the parties

The storekeeper prepares comparative statement to analyse the price for each type of
materials, the stamen also includes party name, taxes, mode of payment whether it is paid
directly or through bank, delivery period and the particulars about the terms and conditions.
Later it has signed by the storekeeper and assistant manager, the statement is sent to the
managing director for the selection of the vendor.

The managing director has to select the party analysing the comparative statement; he has to
finalize order regarding the required materials. They may request to reduce the price of the
materials. They receive the materials with in the specified period mentioned. The payment is
made according to the supplier wishes. The seller having the original sales form and give the
duplicate to the carriers.

The bill is sent to the buyer, and then the storekeeper should file all the bills and receipt, so
that it will be earlier to pay the amount. As they receive the material it is issued only in FIFO
method.
 They also maintained bin card for each and every material. In the inventory management
they are maintaining the minimum stock level,maximum stock level and re order level.The
store keeper are arranging the goods easily manner in order to retrieve stock quickly and
maintaining the clean environment against fumes and dust.

3.7 MATERIAL PLANNING :

The material planning stage after the project has been awarded to SSD (through the Material
Planning and Control Group) The Department is responsible for the planning and
management of the supply chain process with regards to both raw materials and fasteners, in
addition to other special buyouts. This is done through the Material Planning and Control
Group and includes the following major activities:

The close involvement and coordination with the Purchasing Department with regards to
the sourcing process and the selection of optimum suppliers whose delivery dates satisfy the
projects requirements.

Uses Oracle ERP (Enterprise Resource Planning) applications for the planning, ordering,
tracking, receiving, and issuance of materials.

The thorough tracking of ordered materials for each phase of each project, which in turn is
reflected through a weekly released tracking report until the materials are fully received at
our shop. This report serves as a powerful tool for the fabrication planning as well as for the
phase wise tracking of the material across different projects.

The Engineering department of Structural Steel Division consists of two major Engineering
Offices located in Saudi Arabia and Jordan. The Engineering services combine the excellence
of technology with sound Engineering skills to result in greater quality steel design and
detailing services, management and delivery. Our systems and softwares are capable and
flexible to handle various requirements of our clients. We have a team specialized in
Engineering Software and their proficiency helps our clients to achieve the most economical
and structural efficient engineering solutions

The most suited infrastructure required for a 100 percent CAD environment. Automation
has been implemented to achieve accuracy and efficiency in designing &detailing complex
structures like Industrial buildings, pipe racks, Equipment structures, high-rise buildings,
ware houses etc.

In house developed connection design tools (as per ASD & LRFD) for various codes are
used to increase the efficiency and accuracy to produce connection design for various types
of complex structures. Design software STAAD PRO is used by highly qualified Structural
Engineers for structure design.

State of the art 3D modeling software Tekla structure (formerly XSteel) is being used for
steel detailing and all drawings are computer generated. Latest versions of CAD Packages
like AutoCAD and Micro Station are also used to provide accurate and high quality drawings
to meet customer requirement.

In house design link to Tekla structure being developed to ensure automatic connection
design data transfer to Tekla 3D model to make uniform, efficient and error free connection.

CNC Team dedicated to verify & prepare CNC programs and improve the link of CAD to
CNC equipments at the fabrication shop to accelerate the production activities by providing
error free CNC data.

Fast communication achieved through electronic file transfer by E-mail or FTP (File
Transfer Protocol) using internet.

The Engineering department is capable of handling all types of structures in the areas of
structural design, connection design, erection & shop drawings preparation including Bill of
Materials. The department has a high capacity to produce shop drawings and associated
documents by the effective use of computer softwares and qualified Experienced Engineers.

The Engineering Department achieves project requirements of delivery by planning work

activities, reviewing and coordinating between design, detailing and other internal
departments.

The Engineering department uses a piece mark code system which consists of the item
number and material finish, code for easy reference during fabrication and erection and cross-
checking of the details of the individual piece.
 The Engineering department produces computerized field bolt list which gives full details
for erection such as quantity, type and finish of the bolt assembly associated with each piece
mark and connecting assemblies to identify the correct bolt assembly for erection. In
addition, a separate list for erection reference is generated for loose part such as clip angles,
splice plates... etc associated with main members.

The Engineering department produces the Piece Mark Tracking Report (PMTR) to track
and monitor the progress and status of each piece in the whole project.

PMTR also presents status of the different stages of production for each project including:
Engineering completion, Production order, Preparation, Material fitting, Welding, Shot
blasting, Painting, Q.C. inspection and shipping completion. PMTR presents the following
information:

o Shop Drawings numbers

o Shop Drawings numbers

o Quantity

o Member description

o Unit and total weight

o Unit and total surface area In addition to the above,

PMTR also presents the different stages of production for each job like:

engineering completion, production order, material cutting, material fitting, welding, shot
blasting, painting, Q.C. inspection and shipping completion.

4.PRODUCTION DEPARTMENT:

4.1 INTEGRATION WITH OTHER DEPARTMENTS:

 Production department is mainly concern with finance department only. From purchasing of
raw material to packing process, the capital will be needed for running the business. For
effective utilization of resource, scheduling must be carried out in the process. By scheduling
wastage of the steel will reduce and to achieve the 0% wastage reduction. Next production
department mainly concern with HR department, it will observe the performance of the
employees who are working on the company.

This department will increase productivity of the company.

4.2 DEPARTMENT STRUCTURE:

4.3PRODUCTION PROCESS Design & Development:

The Design lab at Muthu Alloys boasts of the best in breed people, process and technology to
ensure minimal error and rework. The product development and design department drafts and
designs using CAD/CAM before development. Equipped with Magma for solidification
analysis, all simulations adjustments and allowances are made at design unit.
Melting & Moulding Facilities:

All the 3 plants operate on Medium Frequency Induction Melting Furnaces. Furnaces ranging
from 250 kg, 1 MT, 2MT and 6MT have been installed across the 3 production facilities.
Muthu has strategically positioned the 3 units to cater the wide range of casting weights for
the body and components of valve manufacturers to provide a one-stop shop for sourcing. As
rate of pouring and furnace temperature loss after tapping of metal are critical to maintain
quality, a wide array of furnaces are operated.

Depending on the liquid metal requirement, the plant for pouring is chosen by the product
development team. Currently, we can pour a 6 Ton casting by running the 6MT furnace Dual
Track to tap 12 MT of liquid metal. The moulding process across the 3 plants is hand
moulding Co2-Silicate process. Airset cores are taken on special cases depending on
criticality of the casting. Intensive process control is being put in place to ensure consistency
in the manufacturing process.

Bottom Pouring:

All medium & large size castings weighing from 250 Kg up to 6500 Kg are poured using
Bottom Pouring Ladles. There are 15 Ladles in all the 3 units ranging from 250 Kg to 12,000
Kg Liquid metal Capacity. The adequate capacity and flexibility in transporting Liquid metal
to the mold helps in planning to tap only sufficient quantity of metal required for pouring. As
pouring weight varies based on casting size and pressure class, a consistent rate of pouring is
maintained by using the appropriate Ladle to manufacture a clean casting. To pour Duplex
and Gaseous type of materials, Argon Purging facilities in the Ladle are provided to inject
Argon Gas into the bottom of ladle.

The bottom pour ladles enhance the metal quality, improves the head pressure, and provides a
consistent flow rate with minimal air entrapment due to operator variation. Small Castings
ranging from 5 Kg - 250 Kg in weight are poured using Tea Spout Ladle to reduce the rate of
pouring to avoid erosion of the mould

Test Lab:

The testing units in Muthu has the following departments, Physical Testing (including
Universal Testing Machine, Hardness Testing , Impact Testing Machine, Metallurgical
Microscope with Photographic Attachment), Chemical Testing (Optical Emission
Spectrometer: capable of checking 30 elements), Wet Analysis, Radiographic testing etc.
Sand test lab: Sand is the basic ingredient that helps build the casting quality by reducing
inclusions and gas entrapment during metal pouring and solidification. Effective controls
with a strong sand testing lab have been setup in every foundry facility to test incoming sand
and process sand. Incoming sand is tested for AFS, Clay Content and Loss of Ignition (LOI),
and only accepted material is used for production. In process sand, Permeability, Moisture
and Compression Strength are tested for every batch to ensure consistency in mould making.

Wet lab:
 The incoming material such as alloys and scraps with irregular metal surfaces are checked
for its chemical composition by wet analysis.

Spectro unit:

Optical Emission Spectrometer . This equipment can check 30 elements including Nitrogen,
Oxygen and Boron in four bases namely Iron Nickel, Cobalt and Copper.

Final Inspection:

The prepared castings are checked for visual, dimensional and invisible defects. Magnetic
particle and dye penetrant tests are also conducted at this station. Weld repairs are carried out
for discovered defects

Dimension Inspection:

All sample castings and random bulk production castings are inspected for dimension
consistency. Wall thickness report is provided to the customer as required for bulk production
castings. Dimensional variations are immediately updated to the patternshop and process
control to make necessary corrective actions. Dimensional inspection area plays an integral
part of casting development for maintaining accuracy in the product supplied to minimize
rework during machining. In order to support the technical development team, young
engineering graduates coordinate the functions in this area.

Magnetic Particle Testing:

Magnetic Particle Testing is 100% performed on Carbon Steel Castings and Low Alloy Steel
Castings to identify cracks, surface discontinuities and sand entrapment in the surface. Dry,
Wet and Fluorescent Method are practiced at Muthu. Magnetic Particle Testing is done as per
customer specification in accessible Areas. If no special mention is given in the Customer
Spec, then Dry method is practiced. Both Yoke and Prod method are available for testing

Pickling & Passivation Facilities:

For all Stainless Steel and Duplex Steel Castings Pickling and Passivation is done to clean
the impurities in the surface. Every unit is setup with own material handling facilities and
buzzer systems to control the pickling and passivation of castings. Material Handling
facilities are provided for each tank to hold the casting during the cleaning process.
Penetrant Testing:

Penetrant Testing is 100% performed on Stainless Steel, Duplex, Super Duplex and Nickel
Alloy castings. As these materials are non-magnetic, Penetrant Testing is done to identify
Cracks and surface defects. Water Washable and Solvent Removable methods are practiced
at Muthu in all the 3 facilities. Penetrant Testing is done as per customer specification in
accessible areas. As a standard, Water Washable Technique is practiced in Muthu. Solvent
Removable is done if requested in the Customer's inspection requirements.

Heat Treatment & Fettling:

1.Heat Treatment Sufficient capacity in Heat Treatment process has been invested to handle
the various customer requirements. A total of 9 Heat Treatment Furnaces in all the 3 Units
have been setup. All the Furnaces are calibrated by 3rd Party according to procedure API 6A
(Appendix H). 5 Electric Furnaces ranging from 1 MT to 3 MT capacity and 4 Oil Fired
Furnaces ranging from 3 MT to 20 MT have been installed. The Furnaces have been designed
to reach high temperatures of up to 1250 Degree Centigrade required for the High Alloy Steel
and Nickel Alloy Steel Grades.

2 Electric Furnaces with Automatic Quenching facilities have been also installed to maintain
process consistency.Shot Blasting Machine Seven Hook-Hanger type shot blasting machines
have been installed at the 1st Stage Fettling and Final Finishing Fettling areas of each plant.
Shot blasting capacity ranging from 500 Kg to 12 MT have been installed to suit each plant's
surface quality requirements. With the diverse range in capacity focused on the casting
weight and size at each plant, Muthu has been able to satisfy customers with excellent surface
finish quality.

3.Grinding& Welding Electrically operated high speed grinders are used for final finishing of
the castings. Welders are qualified for each grade as per ASME Section IX and EN Standards
to support the up gradation of castings. Careful material handling of welding electrodes is
done to ensure quality of welding. Despatch & Packing: Finished products are sorted, tagged,
packed and loaded for transportation in this area. For export customers, un-machined castings
are packed into Wooden Crates or Wooden Boxes depending on the customer's

4.4 SAFETY INSTUCTION TO WELDERS :

o Welding shield helmet

o Safety protection gloves

o Safety protection goals

o Safety mask
o Ear plug

o Leg guard.

4.5 RESEARCH AND DEVELOPMENT:

Identify and develop new businesses through conducting market research, demand forecasts
and customer surveys for new businesses/products (up/down stream integration) in line with
vision and long term strategies of ZIIC. Provide necessary information for preparing full
fledge economic feasibility studies. Enhance the current business by:

Facilitate technology up gradation by identifying industry bench marks in manufacturing

efficiencies and mapping practices against the bench mark.

Identifying the gaps and prioritize areas of immediate improvement. Process re-
engineering is used to align Industry practices with industry best performances.

Improve current process by identifying process capabilities and aligning support systems to
match the process capabilities.

Closely coordinating with the Industrial Engineering Department to ensure the following
are successfully and continuously conducted and implemented: Facilitate Methods
improvement studies: Assist in identifying better methods through critical analysis &
brainstorming for all the critical operations/processes with an overall objective of improving
the productivity of all the resources.

4.6 PRODUCT LINE

Muthu has adequate infrastructure and technical capability to manufacture value and
engineering casting in critical material A grade.value casting include bonnets and wedges for
Gate value Global value Check value Plug value Ball value Butterfly value Control value
FACTS

o Eyes examination conducted for all quality control personal

o Level production plan

o All employees are covered under various social security scheme.

o Clear inspection for inprocess and final inspection

o Measuring and monitoring equipment are calibrated periodically to ensure the accuracy

5.FINANCE DEPARTMENT :

5.1 OBJECTIVES:

o To know about finance department

o To know about current analysis

o To keep the record on time

o To analysis profit

5.2 DEPARTMENT

a. Bank payment department

b. Export - Cash inflow department

c. Payable- outflow

d. Payable department

e. Import

f. Bill of lading

g. Sales tax department

h. Accounts finalization department

5.3 REGULAR ACTIVITIES:

The following are the regular activities carried out by the financial department in the
company:
 It is responsible for preparation of cash flow and monitoring the inflow and outflow
of cash.

It also prepares financial budgets in line with the annual business plan.

It is adopting management plan to reduce interest cost by proper source of finance.

5.4 FINANCE DEPARTMENT STRUCTURE

5.5 FINANCIAL DEPARETMENT STRUCTURE:-

In company, accounting systems include computers, highly trained personnel, and

accounting reports that affect the daily operations of every department. But in every
case, the basic purpose of the accounting system remains the same: to meet the
organizations needs for information as efficiently as possible. An accounting system
consists of the personnel, procedures, technology, and records used by an organization
(1) to develop accounting information and

(2) to communicate this information to decision makers.

The design and capabilities of these systems vary greatly from one organization to
another. Many factors affect the structure of the accounting system within a particular
organization. Among the most important are

(1) the companys needs for accounting information and

(2) the resources available for operation of the system.

The finance manager has to deal mainly with the 4 As. They are following as:

Anticipation of fund (i.e. capitalization)

Acquisition of fund (i.e. raising of funds)

Allocation of fund (i.e. investment decision)

Assessment of fund (i.e. evaluation of financial activities)

5.6 INTEGRATION WITH OTHER DEPARTMENT:

After the manufacturing of the product it will market or send to the consumer. So it
mainly depends on the production and marketing department. If any material purchase
for the production, the store keeper must file bills periodically. After the contract is
over, all financial transaction must be entered genuine in the transaction book. So it
will lead to profit of the company. Company objectives will be achieved through this
department only.
 5.7 CASH MANAGEMENT SYSTEM:

Efficient cash management processes are pre-requisites to execute payments, collect

receivables and manage liquidity. Managing the channels of collections, payments
and accounting information efficiently becomes imperative with growth in business
transaction volumes.

This includes enabling greater connectivity to internal corporate systems, expanding

the scope of cash management services to include full-cycle processes (i.e., from
purchase order to reconciliation) via ecommerce, or cash management services
targeted at the needs of specific customer segments. Cost optimization and value-add
services are customer demands that necessitate the creation of a mechanism to service
the various customer groups.

Banks are increasingly becoming innovative and anticipating the needs of corporate
towards standardization, ERP integration, reconciliation, real-time reporting,
providing an end-to-end view of cash management value chain besides offering the
ability to reach and be reached by their own customers. The mounting pressure from
competitors forces the Banks to look for an Information Technology vendor who can
offer better solutions and services in Cash Management.

5.8 CREDIT MANAGEMENT SYSTEM:

As competition grows across all markets, there is increasing pressure to make

effective decisions at every stage of the credit lifecycle - new business, customer
management and debt collection. Credit management is the process for controlling
and collecting payments from customers. A good credit management system will help
to reduce the amount of capital tied up with debtors and minimize company exposure
to bad debts. Good credit management is vital to company cash flow.

6.MARKETING DEPARTMENT S :
In marketing department activity like market research,latest market trends and technology for
its product ,exploring new market ,planning and implementing a marketing
strategy,developing creative advertisement campaign and promotional literatures, selecting
through various appropriate media ,public relation activities and organizing exhibitions
,seminars etc,

ensuring to accomplish the company vision and mission goals

6.1 DISTRIBUTION STRATEGY:

These consumers can be classified into three major groups they are

1)Government

2)Retailer

3) Private sector consumers

To cater to the needs of all its consumers, the company does both (B to B selling) and retail
outlets (B to C selling). Bulk orders come under direct selling and small order from retail
outlets. Muthu metals has selected 28 distributors in different location across India. Every
distributor is given 2 days training session, after which they become confident about the
product and learn how to differentiate its product from its competitor product.

Aggressive distribution strategy needs to be adopted for covering large rural area.
Distributors keep active sales force to cover all the retailers in their geographical area. Within
the Distribution category, the business is categorized as OE or Retail, based on whether the
customer is serviced directly, or through the Retail / Distribution network. In OE, there are
sub-segments like OEM distribution, and in Retail sub-segments like GC/GP retail
distribution, CR retail distribution, and geographic segmentation.

In OEM distribution, the customers specify the grade of steel that they require and the
company takes responsibility to supply them the same grade of steel in the agreed cut to size
condition. In retail distribution, companies maintain stocks of material for feeding its retail
chain and provide Value for money products.

6.2 SALES FORCE MANAGEMENT:

Sales Force Management is a sub-system of marketing management. It is Sales Management

that translates the marketing plan into marketing performance. That is why sales force
management is sometimes described as the muscle behind the marketing management.
Actually sales force management does much more than serving as the muscle behind
marketing management.
 Sales managers in modern organization are required to be customer-oriented and profit-
directed and perform several tasks besides setting and achieving personal selling goals of the
firm.

7.SWOT ANALYSIS :

STRENGTH:

Over 80 years of experience in manufacturing and marketing steels of various size and
application

Comprehensive range of product

Excellent company

Commitment to technical

WEAKNESS :

No scheme for end use

Higher cost as a result of excise duty and other tax

OPPOURTUNITIES:

Significant growth in demand in both agricultural and domestic sector

Increasing important of industry sector

Increasing demand for high quality

THREATS :

Growing competition

No entry barriers

Increase global competition due to the reduction of customer duties on steel

CHAPTER 3

OBSERVATION :

Observation in Human resource Department

Every employee must have state bank account and compulsory.

Every month 3rd week Wednesday review to RR

Punctuality is maintained strictly

2time warning ,3rd time notice,more than dismiss

In the worker side only they are recruiting women workers, but in the
administration they are not selecting women employees. The following
are the reasons told by the company,

Lack of attendance.

Decrease in efficiency.

If medical leave means want to go with medical fitness certificate

In the company, employees are maintaining the 7s kaizen to increase

the productivity and there is the better co-ordination in the company
with the various department.
 Real time training must be given to the employees to increase the
productivity of the company,in purchase department all working
sincerely and hardworking persons.

In the production department the company implementing the Kaizen 7s

technique. The productivity depends only on the man power. Company
is working to achieve their mission. They are using inventory
management system for storing the goods such as raw materials of
cotton, spare parts for the machines. They are arranging the inventory
in the alphabetic manner, so all people can retrieve the inventory
easily. Ware house are free dust and they are keeping environment
neatly.

Company is in the good financial position and it running profitable

while comparing with other competitors.

If the product sells in the local market, it can earn more profit than now

Company will have contract with other parties, manufacturing product

depending upon the contract only. Price will be quoted by the
consumer.

manufacturing of the product, it will be packed and sent to the consumer i.e. contracted
company

Company is giving training for the employees who are new to

the concern. They are giving one week indication training for
those employees with their salaries. If any accident happens to
employees they are doing first aid in the company itself, further
they are providing treatment to the hospital which is situated
inside the company itself.

If any disputes among the employees, it will be solved by the

human resource department. They are using biometric system
for their attendance. Amount will be credited after the delivery
of the goods by the contracted company. Quality of the product
will be achieved through producing standardized product which
will satisfy consumer needs.
 Presentation make a person towards effectively but also give
opportunity to the fresher who process and skills.

SUGGESTIONS

o Company can reduce work pressure

o The company should arrange counselling program for employees

o Employee working hard heavily leave them for break atleast for few minutes

o Employee saying food are ok but not good.

CONCLUSION

In this summer training MUTHU METALS CORPORATION ,I learned a lot and I am the
responsible for the work which company gave me for 1month training really helpful for my
carrier . Function of the various department company never fails to create healthy atmosphere
for employee. The working persons are working hardly and sincerely .and also satisfied ..

Each and every employee having good contact, and relationship and communication with
each and every employees .All the employee must wear ID card ,uniform and shoes neat and
clean and in the production department workers must wear helmet.everyone must report the
attendance through the machines. from this I learned punctuality.