Os in Keltron Kannur

1
JN8IJIkIe 0I mANAemeNI JN KeRAIA - AIAPPkZHA

CHAPTH 1
I1LC1tC1IC


INTRODUCTION

As a part oI our MBA curriculum, organization study is the area where our theoretical knowledge
under study with an organization to Iind out its overall working, learn about origin, growth and
development oI the company, understand and analyses about the quality policy oI the organization and
the role oI each department in the organization dealing industrial products and also oI the working
culture oI the executive and the workers. The organization study at Keltron Component Complex
Limited (KCCL), Kannur has provided me with inIormation oI various aspects and has been a valuable
help and assistance to me.

Keltron is India`s Iirst and the largest electronics corporation in the State sector. Keltron has been a
catalyst in making electronics work in almost every aspect oI our daily liIe, since 1973. It is India's
leading capacitor manuIacturing company. It oIIers the widest range oI capacitors covering various
types oI aluminum electrolytic capacitors, AC motor start capacitors, motor run capacitors and power
Iactor correction (PFC) capacitors.

The main objective oI the study was to get the overall idea about the Iunctions oI an organization.
This report provides details about the diIIerent departments and Iunctions oI the organization.

OB1ECTIVES OF THE STUDY
To study the organizational structure oI the company
To understand the Iunctions oI various departments
To gain practical knowledge about the Iunctioning oI various departments oI the organization
To understand the strength and weakness oI the organization
To understand the external environment oI the organization

METHODOLOGY
The 'Organization study`` at KELTRON is based on a descriptive study. The data collections were both
Irom primary and secondary sources.
PRIMARY DATA SOURCES;
Interview with managers, oIIice staII and workers
InIormal talk with employees and observations
SECONDARY DATA SOURCES;
ata collected Irom annual reports, departmental report and catalogues etc.
ata collected Irom company website and Wikipedia
ata collected Irom books

SCOPE OF THE STUDY
The study is intended provide managerial insight to a management student. II will enable him to take up
responsibilities oI a manager at ease and provide him more conIidence. The scope oI the study is
conIined to a Iew selected departments and their Iunctions. The trainee may also get a Ieel about how
business executives operate in their work settings.


LIMITATIONS OF THE STUDY
The limited time Irame oI two weeks in conducting study is the major constraint.
More talks with the Top oIIicials oI the company were not possible due to their busy schedule.

The conclusions and the inIerence are drawn only on the basis oI the report, received Irom the
interviews and it may be colored by personal bias.

CHAPTERISATION
Chapter 1. deals with the introduction oI the study. This chapter highlights the objectives, scope and the
limitations oI the study
Chapter 2: deals with industry proIile
Chapter 3: deals with company proIile. The company details includes company history, product
portIolio, prospective customers, competitors, organization structure etc
Chapter 4: lays down the various departments and its Iunctions.
Chapter 5: deals wlLh Lhe SWC1 and C81L8'S analysls
Chapter : concludes the report with Iindings, suggestions and conclusion.


CHAPTH
I1tS1L ILCtI1t

INDUSTRY PROFILE
INTRODUCTION
ALUMINIUM ELECTROLYTE CAPACITORS
Electrolytic capacitors are passive electronic components whose basic Iunction is to store energy.
Fundamentally, it is a charge storage device which consists oI two conducting plates separated by an
insulator called dielectric. A variety oI capacitors are in use in electronic and electrical circuits.

A Capacitor is identiIied by the type oI dielectric or plate material used on it. Some oI the most common
capacitors which Iind widespread application in electronics as well as electrical industries are paper,
plastic Iilm (such as Polystyrene, Polypropylene, Polycarbonate, etc.), Ceramic, Mica, Aluminium
Electrolytic, Tantalum, and others.

A capacitor is expressed in terms oI its capacitance, in MF (micro-Iarads) and its working voltage in
Volts (V). Other parameters which speciIy its quality are Leakage Current, issipation Factor (also
reIerred to as Loss Factor).

Aluminium Electrolytic Capacitors are being used extensively Ior consumer electronic goods all over
the world. Like any other type oI capacitor the Aluminium Electrolytic Capacitors (AECs) too have two
plates separated with a dielectric. While most other types oI capacitors are bi-polar in nature (any
polarity voltage can be connected to either oI the plates) a good majority oI AECs are polar. The
outstanding advantage oI electrolytic capacitors is the large capacitance/volume ratio. The large
capacitance in ECs arises Irom very thin Iilm oI dielectric used oI the order oI 10
-6
cm.

The method oI making Iilm is by making anodic oxidation. Metals like Aluminium, Tantalum,
Vanadium, Magnesium, Bismuth and Antimony are readily coated with a Iilm oI dielectric by
electrolytic "Iorming process". The Iorming process consists oI the deposition oI a thin Iilm oI

Aluminium Oxide on the surIace oI the plate. Aluminium Ioil enters in the tank oI electrolyte with a
constant voltage applied and passes through the tank until the required thickness oI Iilm is produced

The essential parts oI electrolytic capacitors and their Iunctions are:-
PARTS FUNCTIONS
Aluminium Ioil Positive or anode
Oxide Iilm ielectric

Electrolyte Negative or true cathode
(Usually a paste oI glycol and ammonium tetra borate)

Spacers Necessary to separate the cathode and anode Iilm Irom direct contact
A second Aluminium Ioil Contact electrode to the electrolyte - the cathode

Table: 2.1
The etched Ioil type is similar in construction to the plain Ioil type but the anode Ioil is mildly acid
etched beIore Iorming with a consequent increase in the anode surIace area. As the electrolyte is a paste
it is able to make contact with the whole oI the thin oxide Iilm that is Iormed on this undulating surIace.
It is essential to control the etching process closely so that 'thin` spots are not leIt on the Ioil and also to
ensure that no acid is leIt which might contaminate the Ioil. The increase in surIace area results in a
considerable increase in the capacitance obtainable.

Although the capacitors have common Iunction oI storing the electrons/energy, it is used in almost all
the sectors oI the economy. For instance, capacitors are used in various appliances like air-conditioners,
reIrigerators, motors, coolers, pumps and Ians. Railways, power, cement, steel, automotive, electronics--
almost all the sectors make use oI them. New projects across diIIerent sectors will have direct impact on
the demand oI the capacitors. Electrolytic capacitors are mainly used in radio receiver, tape-recorders,

TV (Black & White, Colour), PA equipment. Hi-Ii system, deIence computer, communication
equipments and industrial applications.

New projects across diIIerent sectors will have direct impact on the demand oI the capacitors. More the
new projects more will be the demand Ior capacitors. emand is also directly related on demand Ior
consumer durables like reIrigerators and air conditioners. Thus capacitors have universal application and
in some Iorm or the other it is used by both households as well as industries.

GLOBAL SCENARIO:
Faster, Better and Cheaper` is the slogan that drives today`s electronic industry. Consumers are buying
goods at a Iaster rate than the past. Electronic industry now Iollows the slogan Innovate or Perish`.
Thus we can see number oI novel and modiIied products in the market today.

AIter the record year in 2000 the global capacitor market declined in both 2001 and 2002 and it was not
until the second halI oI 2003 that the market started to show signs oI a sustained recovery. The recovery
gained momentum in the Iirst halI oI 2004 Iuelled by strong demand and Iirmer pricing. However, with
additional capacity coming on stream combined with the potential build up oI inventories, pricing is
once again expected to come under pressure. This resulted in a slowing market in 2005 and into the Iirst
halI oI 2006. The market is expected to experience a period oI stronger growth in 2009.

The basic technology Ior the manuIacture oI Aluminium Electrolytic Capacitors has changed a little
since the Iirst high perIormance AECs using Iormed and Etched Aluminium Foil was developed in late
1930's. However, over the years, especially with the advent oI modern equipment utilizing integrated
circuit and with the demand imposed by improved and consistent perIormance over extended period oI
time, substantial adaption and process improvement have been made.

The major global players in electrolytic capacitors are:
Barker MicroIarads, Inc. (USA)
Cornell ubilier Electronics, Inc. (USA)
uraCap International Inc. (Canada)
Elna Co. Ltd. (Japan)
Epcos AG (Germany)
Guangdong Fenghua Advanced Technology (Holding) Co. Ltd. (China)
Hitachi AIC, Inc. (Japan)
itano Enterprise Corp. (Taiwan)
Haimen Sancon Jetwell Electronics Co., Ltd. (China)
Illinois Capacitor, Inc. (USA)
Jacktronics Electronics Company (China)
Arcotronics Group (Italy)
Evox RiIa Group Oyj (Finland)
Lelon Electronics Corp. (Taiwan)
Nichicon Corp. (Japan)
NIC Components Corp. (USA)
Nippon Chemi-Con (Japan)
Panasonic Corporation (Japan)
Sanyo Electronic evice Company (Japan)
The end-use markets oI aluminium electrolytic capacitors are:

Consumer Electronics
Computers and Peripherals
Telecommunications
Industrial Applications
Inverters
General-Use Inverters
Inverter Air Conditioners
Other Inverters

1o

ASIAN MARKET TREND: Chinese Capacitor Saga and a comparison with India

China, considered to be one oI the Asian dark horses, has made an astounding progress in the capacitor
industry. The technological, economical, and social policies adopted by the Chinese government have
provided a tremendous boost and encouragement to the Chinese manuIacturers and entrepreneurs.
Supportive import, economic, and development policies have encouraged leading multinationals in the
Iield to set up development and manuIacturing Iacilities in conjunction with the local Chinese players.
This drive has positioned China, unknown and unheralded a decade ago, on the world capacitor map

China has the capacity and technical know-how to produce capacitors oI all types. Varieties oI capacitor
manuIactured range Irom the most advanced surIace-mount ceramic chip capacitors, high-voltage
capacitor banks to the basic components. Capacitor unit sizes range Irom universal-scale, highly
automated, high-volume (mass production) plants down to small garage operations oI the small-scale
entrepreneurs. The technology and size oI the manuIacturing machinery deployed in these plants ranged
Irom state-oI-the-art high-volume version operating in clean-room environments down to the simple
manual machines Iunctioning in unprotected environments. All the large-sized capacitor Iactories are
government-owned or joint ventures with government companies. Most oI the capacitor production and
usage aspects are directly or indirectly government-controlled companies. The number oI Iactories is
more than 500. The production oI ceramic capacitors is 40 billion, electrolytic capacitors 25 billion, and
plastic Iilm capacitors 15 billion. The large-scale units are 25. A large and growing demand Ior
capacitors exists Irom all sectors in China. This oIIers a unique advantage in the setting up oI modern
large-scale plants. These plants can obtain their basic loads Irom the domestic market. Rest oI the
production is exported on marginal-cost basis. This aspect enables Chinese capacitors to be price-
competitive in the export market and the valuable Ioreign exchange earner.
The leading Asian producers oI Aluminium Electrolytic Capacitors are as Iollows:
China
O Andex
O Matsushita Precision
O Bennic Components
O Bonnex Enterprises
1apan
O Nippon Chemicon
O Nichicon
O Shin EL Tsushin Kogyo
O Hitachi Condenser

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South Korea
O Samhwa Elec/Nichicon Korea
O aewoo
O Korea Elna
O Samsung
O ongsung

INDIAN SCENARIO:
The size oI Indian market Ior capacitors is estimated to be around Rs 1000crore. uring the last Iew
years capacitors market has posted a healthy growth oI 10 percent annually. According to a Market
survey the annual requirement oI all kinds oI capacitors in India has been estimated at 1500 million
pieces. . Like any other electrical equipment market, capacitor market is also characterized by the co-
existence oI both organized and unorganized players. However, it is more Iragmented with around
25,000 capacitor players operating in the country.

ue to economic recession and subsequent global meltdown, demand Ior capacitors too has adversely
aIIected. All the major user industries like automobile, cement and steel were adversely aIIected
(especially in the third quarter oI 2008-2009 Iiscal) and also the demand Ior the consumer durables like
air-conditioners and reIrigerators moved southwards. As a result capacitors market encountered sluggish
demand. To cope up with the slackness in demand, many well-known manuIacturers have reduced the
prices oI their products. Indian capacitor industry is dependent on imports Ior some oI its raw materials.
omestic manuIacturers complain about the aberration in duty structure which is hampering the growth.

Taiwan
O Kaimei Electronic
O Yeong Long
O Matsushita Taiwan

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CHAPTH
CCMIA ILCtI1t

1

COMPANY PROFILE

ABOUT KELTRON:

Keltron, Kerala State Electronics evelopment Corporation Limited, is a public sector Electronics
Company located in Kerala. It is headquartered at the capital city oI Kerala, Thiruvananthapuram. The
company is under the direct control oI the State government oI Kerala. The registered name oI the
company is Kerala State Electronics evelopment Corporation Limited (KSEC). The name
KELTRON was coined Irom two words, Kerala Electronics and when it was necessary to use a small
word in Telegrams reIerring to the company.

Keltron is India`s Iirst and the largest electronics corporation in the State sector. Keltron has been a
catalyst in making electronics work in almost every aspect oI our daily liIe, since 1973. The tag line
launching a State-owned electronics enterprise, more than a quarter century ago, read 'spearheading an
electronics revolution in Kerala. It was an experiment by Government oI Kerala to transIorm the laid-
back, picturesque Kerala State known Ior its spices, natural beauty, Kathakali and the Onam boat races,
to an arena Ior industrial and technological development. That was how Keltron was born.

Within Iive years oI its inception, Keltron had set up a production centre in every district oI the State.
More than 5,000 people were engaged directly or indirectly by Keltron Ior the manuIacture oI electronic
goods. The model oI a State-owned electronics corporation was so successIul that several other States in
India Iollowed suit - launching their own electronics corporations. Over the years, Keltron has built up a
strong inIrastructure spread over 7,00,000 sq It oI built-up area. Equipped with computer-based Iacility
Ior system design & engineering, and soItware development tools Ior embedded systems, Keltron today
is Iully geared to oIIer high quality integrated manuIacturing solutions.
A strong inIrastructure, enterprising team oI people, innovative operational methods, accent on quality
and customer-orientation are the core competencies oI the organization which has made things happen
all these years. Keltron`s expertise in high quality manuIacturing is the direct result oI the highly skilled,

1

multi-disciplinary team oI graduate engineers, project managers and a skilled workIorce with a proven
track record in complex precision manuIacturing. Currently, Keltron employs a work Iorce oI 2000 oI
which 400 are Engineers who possess extensive hands-on experience in technology integration and
adoption, high-tech manuIacturing operations and in managing turn-key projects. Man power at Space
Electronics section has been specially trained at Indian Space Research Organization (ISRO) in high-
reliability soldering, harnessing and QC. Keltron also provides technical manpower to major
organizations like ONGC and VSSC, and collaborators like Hitachi, Japan.
Ensuring quality is a continuous on-going process at all production units. Each Iacility has a Quality
epartment whose business is to see that all quality norms are strictly adhered to in the manuIacturing
process. The manuIacturing centers at Trivandrum , Aroor (Near Cochin), Kannur and Kuttipuram (In
Malappuram) are ISO9001:2000 certiIied. Inspectorate oI Naval Armament (SINA-T), has implemented
their customized quality systems at Keltron Equipment Complex, Trivandrum. The manuIacturing plants
Ior Capacitors, Crystals & Resistors have been granted LCSO approval. In order to meet the stringent
quality requirements oI ISRO, ES-control measures have been strictly adopted at the speciIied areas.
Keltron has an All India Sales Network in place with Iull-Iledged Marketing OIIices in Mumbai, elhi,
Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad and Trivandrum to provide the quickest possible
service to customers.

Keltron`s capabilities lie in the Iollowing distinct areas:
O Availability oI large pool oI experienced technical manpower.
O Strong inIrastructure and manuIacturing experience.
O Commitment to quality.
O Access to top level technology support.

.

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The products oI KELTRON consist oI a diversiIied Iield like:
Aerospace Electronics
Security Surveillance Systems like CCTV systems, Attendance/Access control systems, security
electronic products
Intelligent Transportation Systems
Strategic Electronic products Ior eIence and Space departments
InIormation Technology Solutions like Intranet and Inter-oIIice Communication solutions, Web
application development, Website hosting, IT Training, Support services
Process Automation Systems
I Card Project Electoral photo identity card, Touch screen Kiosks, SMART Cards, Bar coded
cards, employees identity cards
Power Electronics Systems High-Irequency IGBT converters, RectiIiers, Industrial Battery
Chargers, High Capacity Voltage Stabilizers, AC & C distribution boards
Electronic Components Aluminium Electrolytic Capacitors, Motor Start Capacitors, Metallised
Plastic Iilm Capacitors, Ceramic isc Capacitors, Carbon/Metal Iilm Resistors, Piezoelectric
Quartz Crystals, Transducers, NTC Thermostats
KELTRON COMPONENT COMPLEX LTD. (KCCL)

Keltron Component Complex Limited (KCCL) is a Government oI Kerala undertaking
promoted by Kerala State Electronic evelopment Corporation (KSEC) and Iounded by Mr. K.P.P
Nambiar. Keltron Component Complex Ltd is located at Keltron Nagar, 15 km Irom Kannur in Kerala.
The company has a land area oI 44,100 square meter, and a Iactory area oI 9150 square meter. It is
India's leading capacitor manuIacturing company. It oIIers the widest range oI capacitors covering
various types oI aluminium electrolytic capacitors, AC motor start capacitors, motor run capacitors and
power Iactor correction (PFC) capacitors.
Keltron Component Complex Limited (KCCL) was incorporated on 8
th
October 1974 as an
associated company oI Kerala State Electronic evelopment Corporation Limited (KSEC). It started
its operation in the year 1976. KCCL`s headquarters is situated at Trivandrum. It is a public limited
company established Ior the manuIacture oI Aluminium Electrolytic Capacitors oI KSEC on 28
th

1

August 1986. A plant Ior the manuIacture oI 18 million pieces oI Aluminium Electrolytic Capacitor was
established in collaboration with M/S N.V Sprague Electromag Belgium, which was a subsidiary oI
Sprague Electric Co. USA. The company went into commercial production in August 1978. The
expansion oI capacitor plant was undertaken in a phased manner to 55 million pieces by 1984-1985 and
150 million pieces by 1990-1991. The production increased to 145 million pieces in 1999-2000.

Keltron Component Complex Limited markets its products under the brand name KELTRON
oI its parent Company. It has a state oI the art manuIacturing Iacility with sophisticated automatic
machines Irom Japan, Taiwan and Europe. It has the capability to produce all types oI Aluminium
Electrolytic Capacitors which conIorm to national and international standards. The manuIacturing
technology is constantly upgraded by R& Centre oI the Company which has the recognition oI the
epartment oI ScientiIic & Industrial Research, Ministry oI Science & Technology, Govt. oI India. The
Company's Quality system has been conIerred with the ISO 9001 accreditation by M/s KPMG

MISSION
'The company aims at maximum satisIaction oI the customers by providing goods which meets the
requirements. And they are committed to achieve goal with the involvement oI employer at all levels
VISION
Keltron`s corporate vision as the company enters the 21
st
century is
To emerge as a strong and selI reliant business enterprise with customer Iocus, proIit orientation
and proIessional outlook.
To build up Keltron as a model PSU in the sunrise Technology Sector oI Electronics and IT.
To Iunction as a backbone oI electronic industry in the state.
To continue to play the role oI nodal agency oI government Ior accelerating the growth oI
development oI this core industry in this state.

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PROSPECTIVE CUSTOMERS;
The Electrolytic Capacitors are widely used in TV sets, Radio, Tape Recorders, Telephone
instruments, Electronic exchanges, Communication equipments, eIence equipments etc. The present
customers include major Indian manuIactures like BEL, ITI, C-OT, HCL, TATA TELECOM, BPL
TELECOM, BPL, ONIA, SHARP INIA, VIEOCON, CROMPTON CREAVES, TEXLA, ECIL,
INIAN AIRPORT AUTHORITY etc.

COMPETITORS;
The major competitors in India Ior Electrolytic Capacitors are Punssumi India Ltd, Uptron,
Webelson, Philips, Incap, Elnet etc. With the onset oI liberalization oI economy and bringing capacitors
under OGL the company has to compete with international brands like Rubycon, Nichicon, Panasonic,
Samsung, Elna etc.

RAW MATERIALS;
The main raw materials used Ior manuIacturing AEC's are:
O Etched aluminium Ioils 30 to 60 microns thick
O Formed aluminium Ioils and anodised etched aluminium Ioils 50 to 90 microns thick.
O Condenser paper, craIt and Manila Hemp and uplex
O Aluminium cans
O Lead tabs.
O Electrolytes
O Rubber bungs, EPM, EPT rubber.
O isc covers.
O Adhesive tape, high purity and high temperature.
O PVC heat shrinkable sleeve.
O Aluminium wire
O CP Wire (Copper plated) and Plain aluminium Ioil.

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TECHNOLOGY AND IN-HOUSE R&D;
The epartment oI ScientiIic and Industrial Research, Ministry oI Science and Technology, Government
oI India, have approved the in-house Research and evelopment activities oI the Company. The
company acquired the technology Ior the design, development, manuIacturing and testing Irom its
collaborators M/S NV Sprague Electromag, Belgium. The manuIacturing process was mainly semi-
automatic and manual in nature which was subsequently upgraded by the company by sourcing state oI
the art automatic machinery Irom Japan and Taiwan during the expansions was undertaken. The
company also updated the technology by obtaining inIormation Irom suppliers on the latest
developments taking place in Japan, Korea and Taiwan on compactness and high temperature categories
oI capacitors with its in-house R & eIIects.
PLANT & MACHINERY;

The original machinery Ior manuIacturing 18 million pieces per annum oI capacitors was sourced Irom
M/S NV Sprague Electromag Belgium. Subsequently, Ior the expansion project the company sourced
automatic state oI the art machinery Irom M/S JCC Engineering co., Japan, M/S CK Corporation,
Japan and M/S ons Enterprises, Taiwan.

The engineers and technicians trained in Japan and Taiwan on the machines oversee the repair activities.
Technicians are provided on the job training, suIIicient stock oI spare parts are sourced and stored Irom
the suppliers Ior Iabrication oI spare parts, and tools room Iacility is also available.

INFRASTRUCTURE;

Land Area : 44,100 Sq.m
Factory Area : 9150 Sq.m
Connected Load / Captive power : 2300 KVA / 1000KVA
No. Automatic machines : 100 Nos

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QUALITY POLICY;
The company aims at maximum satisIaction to their customers by providing goods that meet their
requirements. They are committed to achieving their policy with the involvement oI employees at all
level through a well reIined quality management system, which is continuously reviewed to enhance its
eIIectiveness and updated to meet changing requirements.
AWARDS & RECOGNITIONS;
National Productivity Award Ior 1988-89 under large scale electronic components units
Irom National Productivity council, New elhi.
ELCINA Award 1993 Ior excellence in Research & evelopment Ior work done in the Iield
oI Iorming technology
epartment oI scientiIic and Industrial Research, Ministry oI Science and Technology,
Government oI India approval Ior the in-house Research & evelopment
ISO 9001-2000 certiIication Irom KPMG-QR, USA, only Electrolytic Capacitor
manuIacture to have ISO 9001-2000 certiIication in India

SUBSIDIARIES OF KSEDC;
Keltron Resistors Ltd:

Keltron Resistors Ltd (KRL) located at Keltron Nagar, Kannur istrict was incorporated on 29
April 75 as a subsidiary oI Kerala State Electronics evelopment Corporation Ltd (KELTRON).
The Company was promoted to manuIacture Carbon Film Resistors and Metal Film Resistors.
The company has as installed capacity oI 217 million to manuIacture Resistors oI both type
Carbon Film Resistors and Metal Film Resistors in wattages 0.125, 0.250, 0.500, 1.000 and
2.000 per annum. This unit manuIactures Metal Film Resistors in both proIessional Grade and
General Purpose application. KRL markets its products through its Holding Company which is
the Sole Selling Agent viz. Kerala State Electronics evelopment Corporation Ltd (KELTRON).

o

Keltron Magnetics Ltd:

Keltron Magnetics Ltd (KML) is a subsidiary oI Kerala State Electronics evelopment
Corporation Ltd (KELTRON), established in the year 1975 Ior manuIacture oI
Electronics/Electrical Components and equipments. The company is situated at KELTRON
NAGAR, Kannur. The products include Metalized Polypropylene Film Capacitors (MPP
Capacitors), A.C Shunt/ L.T Power Capacitor and Servo Controlled Voltage Stabilizers Ior
Industrial and eIence application.

Keltron Crystals Ltd:

Keltron Crystals Ltd (KXL) is a subsidiary oI Kerala State Electronics evelopment Corporation
Ltd. The Company is located at KELTRON NAGAR in Kannur. The Company has been
manuIacturing various types oI precision piezo electric Quartz Crystals Irom 1976. It was the
second Crystal manuIacturing Unit to be set up in the country. The Company has an installed
capacity oI 2.084 million numbers oI Quartz Crystals per annum. In the HSN classiIication, the
product is termed as Mounted Piezoelectric Crystals under the head 8541.00. The Company`s
product range Ior Crystals is extensive and covers Irequencies Irom 1 KHz to 175 MHz. Quartz
Crystals are used Ior accurate control oI Irequency in electronic circuits and Iind application in
various types oI communication equipment, microprocessor based systems and time keeping
devices.

THE AMALGAMATION
In the year 2008-09, the Company has undergone a transIormation both structurally and Iunctionally.
The Government oI Kerala sanctioned on 27-05-2008 the merger oI the Iour subsidiaries oI Kerala State
Electronics evelopment Cooperation Ltd (KSEC) at Kannur viz. Keltron Resistors Ltd. (KRL),
Keltron Magnetics Ltd. (KML), Keltron Crystals Ltd. (KXL), and Keltron Component Complex Ltd.
(KCCL) into one company. The amalgamated Company was to Iunction under the name, Keltron
Component Complex Ltd (KCCL).

1


The amalgamated Keltron Component Complex Ltd is a major indigenous manuIacturer oI Aluminium
Electrolytic Capacitors, MPP Capacitors, Carbon & Metal Film Resistors, and Piezoelectric Quartz
Crystals. KCCL markets its products under the brand name 'KELTRON oI its parent Company. It has
the state oI the art manuIacturing Iacility with sophisticated automatic machines Irom Japan and Europe.
The Company`s Quality System has been conIerred with the ISO 9001 accreditation by KPMG. The
company registered a turnover oI INR 45Crores in 2009-10 and has aggressive growth plans targeting a
turnover oI 200Crores by 2015

FUTURE PLAN;

The company continues the activity oI reducing the material costs through value engineering, internal
R& eIIort etc. EIIorts are made to increase the volume oI production and sales to enhance its market
share countering the competition Irom domestic as well as Ioreign suppliers.

The company had designed Motor Start Capacitors meeting UL SaIety requirements and the product has
been certiIied by UL India Pvt Ltd. The company is hopeIul oI receiving orders Ior these types oI
capacitors Irom manuIactures oI compressors/motors who export their end-products to Canada & USA.

In September 2008, the Company had commissioned a new plant Ior the manuIacture oI Elements Ior
MPP Capacitors and Power Correction Capacitors. It has also expanded its product range by
commencing the sales oI Power Correction Capacitors in the range oI 1KVA to 30KVA. The Company
is also planning to enter into the manuIacture oI Large Can Capacitors (High CV Capacitors).

SHARE HOLDING PATTERN AFTER AMALGAMATION
S| No Shareho|der No of shares
a|d up share
cap|ta|
Shareho|d|ng
percentage

kerala SLaLe LlecLronlc
uevelopmenL CorporaLlon LLd
223 223 73
2 CovernmenL of kerala 73 73 24
3 lu8l 44 44 47
4 llCl 6 6 2
lClCl 8ank LLd
6 LlC 6
7 ClC LLd 4 4 3
unlLed lndla lnsurance Co LLd 3
SluCC 42 42 4
ubllc 3466 3466 2
1ota| 303S762S 303S762S0 100
Table 3.1

BOARD OF DIRECTORS
Table 3.2

NAME TITLE
C. PRASANNAKUMAR CHAIRMAN
Lt Col. PARESH AGARVAL MANAGING IRECTOR
K. RAHAKRISHNAN IRECTOR
U. V. PRAVEEN IRECTOR
PRINCESS PARVATHY BHAI IRECTOR

PRODUCT RANGE;
1?LS
8adlal capaclLors Alumlnlum LlecLrolyLlc CapaclLors
2 Axlal lead Lype Alumlnlum LlecLrolyLlc CapaclLors
3 AC MoLor SLarL Alumlnlum LlecLrolyLlc CapaclLors
4 Large Can Alumlnlum LlecLrolyLlc CapaclLors
M ( MeLallzed oly ropylene) CapaclLors

SERIES

FEATURES OPERATING
TEMPERATURE
RANGE
WORKING
VOLTAGE
CAPACITANCE
(VDC)
RANGE( F)
BODY
COLOUR

Radial lead Standard
85C
-40C to 85C Ior
WV 160V
-25C to 85C Ior
WV ~ 160V
6.3 ~ 450 V
0.1 ~ 22000 nF
Orange

Radial lead type
Horizontal
Correction 85C
(Nonpolar)
- 40C
to
85C
25 = 50 V
1 = 18 nF
Orange
SE Radial lead
105 C
- 40C to 105C Ior
wv 160v-25 c
to105 c Ior
wv~160v
6.3 ~ 450 V
0.1 ~ 10000 nF
Orange


Radial lead
Bi-polar 85C
(Nonpolar)
- 40C
to
85C
6.3 ~ 100 V
0.1 ~ 2200 nF
Orange

Radial lead
low E.S.R
85C
- 40C
to
85C
6.3 ~ 160 V
1 ~ 4700 nF

Orange

Axial lead Standard
85 C
-40C to 85C Ior
WV 160V
-25C to 85 C Ior
WV ~ 160V
6.3 ~ 450 V
0.1 ~ 22000 nF
Orange
MS/M

AC Motor Start
Capacitor Single
Can (MS)& ouble
Can (M)
-30C
to
70C
115 ~ 330VAC
20 ~ 250 nF
Green
Aluminium

Snap-in
85C
-40C to 85C Ior
WV 160V -25C
to85C
Ior WV ~ 160V
10 = 450V
47 = 47000 nF
Orange

Lug Terminal
85C
-40C to 85 C Ior
WV _ 160V

-25C to85C Ior
WV ~ 160V
16 = 400 V
150 ~ 100000 nF
Green

Screw Terminal
85 C
-40C to 85C Ior
WV _ 160V

-25C to85C
Ior WV ~ 160V
16 = 450 V
220 = 100000 nF
Greeen

Table 3.3

ORGANISATIONAL CHART

Fig. 4.1
SIC
PC I
M D
HOD
EDP
HOD
QA
HOD
E & D
HOD
MAT
HOD
E & F
HOD
PLG
HOD
MFG
HOD
R & D
HOD
MKT
HOD
FN
HOD
CAL
HOD
PE
HOD
P & A
SIC
PC II
SIC
PC III
SIC
PC IV
C
n
A
I
k

M
A
N

8
C
A
k
D

C
I

D
I
k
L
C
1
C
k
S


ABBREVIATIONS;
HOD: Head OI The epartment
SIC: Section In Charge
PLG: Planning
MFG: ManuIacturing
PC: Production Centre
MKT: Marketing
FN: Finance
P&A: Personnel & Administration
PE: Plant Engineering
CAL: Calibration
R&D: Research & development
E&F : Etching & Forming
MAT: Materials
E&D: Engineering & esign
QA: Quality Assurance
EDP: Electronic ata Processing


CHAPTH
ttC1ICA1 ALtAS


FUNCTIONAL AREAS AT KCCL
The various business processes, their interaction and sequences are identiIied by the nature oI business.
Following business processes perIormed in the organization are classiIied into the Iollowing sixteen
departments;

1. Personnel & Administration Department
2. Finance Department
3. Marketing Department
4. Planning Department
5. Engineering & Design Department
6. Materials Department
7. Production Department
8. Etching & Forming Department
9. Plant Engineering Department
10.Calibration Department
11.Quality Assurance Department
12.Research & Development Department
13.Electronic Data Processing Department


PERSONNEL AND ADMINISTRATION DEPARTMENT

Men, material and machines are regarded as the three important Iactors oI production. Human beings
constitute the organization at all levels and are regarded as the chieI dynamic Iactor oI production.
The management makes an eIIort to co-ordinate human and material resources in such a manner
that organizational objectives are achieved. It is not very diIIicult to handle material resources, but
without the eIIicient use oI Human Resource Management, it can never accomplish the objectives oI the
business.
KCCL has a very eIIicient Personnel and Administration epartment. Manager is the staII
oIIicer in the organization. He gives advice to the eputy Administration OIIicer, Assistant Personnel
OIIicer and Supervisor. The eputy Administration OIIicer gives direction to the security oIIice. The
security guards are under the control oI Security OIIicer. There are two assistants under Assistant
Personnel OIIicer.
DEPARTMENTAL CHART OF PERSONNEL AND ADMINISTRATION DEPARTMENT

Fig.5.1
CLnL8AL
MAnACL8
L8SCnnLL ClllCL8 AuMlnlS18A1lCn ClllCL8
1?lS1 ASSlS1An1 PLLL8 SLCu8l1? 18AnSC81
1
LS1A1L
MAnACL8

o

FUNCTIONS
The main Iunctions perIormed by the Personnel and Administration epartment in KCCL are as
Iollows;
Manpower Planning
Recruitment & Placement oI employees
Co-ordination & Training oI employees
Keeping personal records oI employees
Arrange in-house and external training to employees
Time keeping
PerIormance appraisal
Promotion oI employees
Wage administration
Administration oI standing orders and adopting welIare measures
MAN POWER PLANNING:
For meeting the requirements oI employees, management must decide beIore hand as to what type oI
men is to be recruited and in what number they are required. T he Iirst problem is solved by job analysis
and the second problem is tackled type oI men is to be recruited and in what number they are required. T
he Iirst problem is solved by job analysis and the second problem is tackled through man power
planning. A proper and systematic man p|power planning programme requires proper Iorecasting and
planning Ior Iuture. It should consider developing man power requirements Ior the whole organization,
to create and evaluate the man power inventory and to develop required talents among the employees
selected Ior promotion.
REQUIREMENTS AND PLACEMENTS
As KCCL is Govt. Company, recruitment oI candidates is done through employment exchanges.
For executive posts the company approaches proIessional and employment exchanges.
As and when a vacancy arises, Personnel and Administration epartment notiIies it to
employment exchanges. II suitable candidates are not available with the latter body, they issue a NAC.
Then the Personnel epartment publishes vacancies in leading newspapers. AIter receiving the
applications Irom the candidates, the department goes Ior scrutinizing them. The company calls the

1

selected candidate Ior interview. For this the company has a selection board, represented by concerned
department head, a nominee oI the Government oI Kerala and the Personnel Manager. This board
conducts interviews and selects suitable candidate. Then the company gives appointment order to the
selected candidate along with terms and conditions Ior appointment. II the person is willing to abide by
the terms, he is directed to sign and return one oI the copies oI the order.
TRAINING
In KCCL internal as well as external training is given to employees. Fresh hands will be selected as
trainees Ior a period oI one year. For existing employees, it is conducting reIresher training by way oI
lectures, work educational classes, external training etc.

Types oI training program in KCCL can be described as;
1. Introduction or orientation training
There are two phases oI induction training program. The 1
st
phase is generally conducted
by the Personnel epartment. It is concerned with giving the new employee a Iriendly welcome,
brieIing him in the matters concerned with the company`s background, products health and
welIare plans etc.
2. ReIresher training
On Iirst appointment, employees are initially given on-the-job training. ue to
technological developments and improved techniques oI managements and production the
training initially given will become out oI date creating the necessity oI giving new training. For
this Regional Worker`s Training Education Centre oIIicers come to KCCL and give training.

KEEPING TRAINING RECORDS OF EMPLOYEES

All the details regarding the training given to employees are recorded in KCCL Ior Iuture
reIerence. etails such as name oI employees, date oI birth, qualiIication, type oI training,
department in which he is working, joining date, training period etc are recorded.


PERFORMANCE APPRAISAL

PerIormance appraisal is the systematic evaluation oI an individual`s perIormance in the
job and his potential Ior development. Appraisal is the evaluation oI work quality. It is the
systematic and objective way oI judging the relative work or ability oI an employee in
perIorming his job. Ordinarily the evaluation is done by immediate supervisors. So it is
technique used to know the work oI an employee qualitatively on-the-job in comparison with
other employees. It is one oI the oldest and usual practices oI management.

In KCCL at the end oI the training period the trainees are absorbed according to his
perIormance during the training period. The Personnel epartment provides perIormance
appraisal Iorms Ior selI-appraisal, executive appraisal and annual perIormance appraisal. SelI
appraisal Iorm is Ior selI assessment oI the employees. The other two are Iilled by the concerned
department supervisors. epending upon the perIormance oI the trainee the Personnel
epartment decides whether the probation period is to be extended or not. On the basis oI his
perIormance during the probation period, the department then decides about the regular
placements oI the employee.

TIME KEEPING

Every employee is given a separate card with speciIic number having Iour digits. The
workers, employees, supervisors & executives have diIIerent serial number. A master roll is kept
by the organization. Electronic punching system in KCCL is used to record the time oI entry and
exit oI each employee. Maximum halI an hour late is permitted to every employee. In the second
halI, late coming is not allowed.

WAGES AND SALARIES

The three categories oI employees, i.e, Executives, Supervisors and Workmen are covered
under MOS signed in April 1996. According to this MOS a senior worker will get a total salary
at around Rs.12,000/- p.m. while a newly inducted workman will get a minimum remuneration
oI Rs.7000/-p.m. Similarly will get supervisor category will get a salary oI around 14,000/-p.m.
The Junior Executive will get around Rs.16,000/-p.m. and the Senior Executive will get
Rs.25,000/-p.m. The A pattern oI workmen is diIIerent Irom those in executive and supervisor
category. The A Ior workmen is based on the Consumer Price Index at all India level. The A
oI executives and supervisors will be based on Kerala Government norms.

ALLOWANCES AND BENEFITS

O Variable Dearness Allowances
VA is an allowance given to the ordinary workers every month. It varies every three
months. It is Iixed as per All India Consumer Price Index, 1960 series.
O House Rent Allowance
This is an allowance given to the employee by the employer in order to compensate the
higher rents prevailing in big cities.
O Conveyance Allowance
It is the allowance used to meeting expenses on conveyance Ior perIorming oIIice duties. A
workman gets Rs.25 as CA.
O Shift Allowance
The general shiIt is Irom 8.30 to 4.30 pm and other 3 shiIts such as 7 to 3, 3 to 11 and 11.pm
to 7.am.The employees who are working in these 3 shiIts apart Irom general shiIt are given
compensation known as shiIt allowance being Rs.5, Rs.7 and Rs.10


O Food Subsistence Allowance
There is a reduction in the price oI Iood provided by the company to the employees. The
employees should given only the one Iourth oI the cost oI the Iood. aily a cup oI tea is Iree
to all employees.

O Medical Reimbursement

All employees are eligible Ior medical reimbursement scheme. This scheme also extends to
Iamily members depended on the employee. The amount oI the beneIits is given on the basis
oI service oI employees

O Blood Donation Forum
Keltron having a blood donation Iorum with assistance Irom employees Ior donating blood to
the needy people. The IT dept. helps in checking out blood group. Also the management has
decided to allow once day leave Ior the blood donor.

WELFARE MEASURES
O Washing, toilet and bathroom Iacility
O For drying clothing
O Facility Ior sitting
O First aid equipment
O Canteen
O Crutch
O Library

ADMINISTRATION OF STANDING ORDERS

In KCCL Standing Order Act 1946 is applicable to workmen in the industrial employment.
This standing order deIines company management, workmen, workmen trainee, workmen`s
classiIication, address and other particulars, probation, seniority, temporary appointment,
transIer, resignation, salary, leaves etc.
GROUP INSURANCE SCHEME

The group insurance scheme is applicable Ior every employees working in the organization.
PROVIDENT FUND

Provident Iund is the Iund that provides Ior Iuture. This Iund is credited by the amount deducted Irom
salary oI the employee every month to which the management adds its own share at a certain rate. When
the employee retires Irom the service, he receives the Iull amount standing in the credit oI his Iund which
includes periodical interest added.
WORK FORCE

Total Employees : Around 700
Permanent Employees : 315
Employees on Contract : 70
Casuals And Apprentice

TRADE UNIONS

O INTUC
O CITU
O KEO (Keltron Employees Organisation)
O KEU (emocratic Keltron Employees Union)

FINANCE DEPARTMENT
Finance is the liIe blood oI any business organization. It mainly concerns with acquisition and use
oI Iunds by the Iirm. Adequate amount is always necessary Ior any type oI business. This business
process regulates all types oI commercial transaction.
FUNCTIONS OF FINANCE DEPARTMENT
O Preparation and maintenance oI accounts related document and records
O Recording oI bank transactions like cash withdrawals, maintenance oI details oI check payments
etc
O Maintenance oI commercial accounts, income tax
O Payment oI company bills viz , telephone, electricity and monthly returns oI proIessional tax,
sales tax and CST & VAT
KEY FINANCIAL ACTIVITIES
1) Financial analysis, planning and control
Assessing the Iinancial perIormance and condition oI the Iirm
Forecasting and planning the Iinancial structure oI the Iirm
Instituting appropriate system oI control to ensure that actions oI managers are
concurrent with the goals oI the Iirm
2) Management oI Iirm`s asset structure
etermine the capital budget
Managing the liquid resource
Establishing credit policies
Controlling the level oI industries
ebt and dividend policy
Choosing the special instrument oI Iinancing
Negotiating and developing relation with various suppliers
On the basis oI current assets value SBI-Kannur and Catholic Syrian Bank- Kannur give cash
credit Iacility to Keltron.


DEPARTMENTAL STRUTURE OF FINANCE DEPARTMENT

Fig.5.2
Abbreviations;
HO : Head OI the epartment
OIC : OIIicer In Charge
PS : Private Secretary

PCu (llnAnCL)
S
SALA8?
ACCCun1S
CLnL8AL
ACCCun1S
SALLS
ACCCun1S
CCS1lnC
ClC ClC ClC ClC
CASPlL8
ACCCun1S
ASSlS1An1
ACCCun1S
ASSlS1An1
CASPlL8
ACCCun1S
ASSlS1An1
1?lS1
ACCCun1S
ASSlS1An1
PLLL8


The company`s expenditure has been classiIied into the Iollowing heads;
Materials consumed
Personnel cost
Financing charges
Selling and distribution heads
Excise duty
Other operating expenses
Miscellaneous expenditure
ASSOCIATED BANKS
State Bank oI India, Kannur
Catholic Syrian Bank, Kannur
Syndicate Bank, Kannur
As 80 oI the raw materials Ior the production oI capacitors are imported, Keltron has to provide Letter
oI Credit. The details oI the banks that gives LC Ior this purpose is given as;
NAME OF BANKS CREDIT LIMIT (in lakhs)
State Bank oI India, Kannur 525
Catholic Syrian Bank, Kannur 175
Table 5.1
AUDITING
The company has eIIicient external auditors. Moreover there is an eIIicient internal check system also.
Besides this statutory auditors appointed by the company law board audits the accounts and records oI
the company. AIter completing the audit, copy oI the report is sent to the Accountant General
Trivandrum and also presented beIore the shareholders. II there are any comments Irom the auditors
shareholders, the company should provide suIIicient explanation to these comments.


The audit in Keltron consists oI;
Internal Audit
Statutory Audit
Audit oI Controller and Audit General oI India
CONTROL
Budget Ior a succeeding year is prepared and presented to the BO during January or February each
year. It is prepared on the basis oI sales projection provided by marketing department. Raw materials
requirement will be estimated on the basis oI comparison with previous year`s Iigures. Total budget is
split up into Iour quarters and procurement oI materials capital and other expenses are controlled on the
basis oI these allocations.
DIVIDEND
The company has regularly paid dividend to its shareholders since 1985-86. The last time it paid a
dividend oI 10 in year 1993-94. Since then it is not able to pay dividend.
RECORDS MAINTAINED
Cash book
Bank book
Journal book
General ledger
Asset register
Purchase journal, Sale pay book, Creditors ledger
Salary register
Subsidiary registers like TA advance, Salary advance, Medical advance, Festival advance and
OT payment register

o


MARKETING DEPARTMNENT

Marketing is the perIormance oI business activities that direct the Ilow oI goods and services
Irom the producer to the customer. It is system oI interacting business activities designed to plan,
promote and service to existing and potential customers. The main Iunction oI marketing is to vies the
customer as the very purpose oI business. It emphasizes on identiIication oI a market opportunity and
IulIilling the needs oI customer. Without marketing there is no consumer and without the customer there
is no use Ior the product or service the company is producing.
At KCCL, the marketing department acts as a guide ,and lead the company`s other department in
developing, producing, IulIilling and servicing products and services Ior their customers.
Communication is vital and the marketing department typically has a better understanding oI the market
and customer needs. The goal and guidelines set by the Marketing epartment are in line with the vision
and mission oI the company. The upper management is also involved in and endorses co-operation by
all department in Iollowing and implementing the plan and integrating a consistent message into all
communication channels.
OB1ECTIVES
To generate maximum business at possible price
Speedy realization oI payments
To encourage dealers Ior doing more business and Ior doing immediate payment by oIIering
turnover discount and cash discount
Optimum satisIaction to customers through timely supply oI products, quality products,
competitive price possibly at international level.

1


DEPARTMENTAL STRUCTURE OF MARKETING DEPARTMENT

Fig.5.3

ELEMENT OF MARKETNG MIX
1. Product

Marketing department ensures that the product is oI the same grade as speciIied by the customer
and meets the quality standard. Currently 7 main types oI aluminum electrolytic capacitors are available.
2. Price

The prices are based on pricing policies taken by the company based on the market condition.
The pricing decisions are taken by the Marketing epartment aIter studying the market condition and
also comparing the competitor`s price.
MAkkL1ING
MANAGLk
SALLS CIIICLk SALLS CIIICLk

SALLS ASSIS1AN1 SALLS ASSIS1AN1 SALLS ASSIS1AN1 SALLS ASSIS1AN1


3. Promotion

It deals with advertising and sales promotion Ior the product. Since the company goes Ior
Industrial marketing department, mainly on electronic segment, it concentrates on direct marketing as a
means oI promotion which enjoys the advantage oI two ways communication. KCCL has corporate
marketing oIIices in Trivandrum, Kannur and has branch oIIices in Mumbai, Kolkata, Ahmedabad, New
elhi, Chennai and Hydrebad. And they also have agents in most oI the places in India.
4. Packaging

iIIerent type oI packing is done Ior diIIerent type oI capacitors. Radial & Axial type capacitors
are generally bulk packed in the Polythene bags which are heat sealed to avoid direct atmospheric
exposure. Individual primary packing in Polythene bag is provided with label which carries outgoing
Inspection Repot No., Capacitors series, Capacitors value, working Voltage, Capacitor Tolerance and
Capacitors size, Capacitor Part No., Temperature, Quality and date oI Packing, Sealed bags are then
packed in cardboard Ior shipment.
Motor start and large Can electrolytic capacitors are generally packed in primary cardboard by
employing suitable separators to avoid damage during transits. The primary cartons are then put into
mother cardboard cartons beIore shipment.
5. Place

In this industry the place is not that much important. In the production plan is set up in
Kalliassery, a rural area in Kannur
MARKETING ACTIVITIES IN KCCL
Keltron carries out the marketing oI KCCL as on contract basis. As holding, KSEC carries out the
Iunction oI marketing on commission basis (charging 7.5 commission). All those years the exports are
done through ET&T department. But Irom 1997 onwards the export is done directly by KSEC.

AGENTS
Agents are appointed by KCCL because it is not possible Ior the company to cater to the need oI
all the customers who are situated at various cities oI which are Iar Irom their branches. Agents are
appointed as per the recommendation made by the branch oIIicers to the management. Criteria Ior
appointment oI an agent are the Iollowing:
An agent should have a business in the potential area or in the particular industry. The person to
appointed as the agent should be Iinancially strong. The agent should have suIIicient technical
knowledge to deal with customer problems. The agent should have suIIicient market as well as oIIice.
InIrastructure like Iax, telephone, where house etc. The person appointed as agent should have good
contacts in the industry.
AIter satisIying the above conditions the appointed agent enters into an agreement with the
company which is signed both by the agent as well as the wise president and the marketing manager oI
the company.
CASH DISCOUNT
For quick and better cash Ilow, cash discount at 3 may be oIIered to the customers Ior
payment by /Local Cheque against delivery/receipt oI the materials. The OEMs/dealers, whose
earlier bills are outstanding Ior more than 75 days Irom the date oI invoice, will not be eligible Ior cash
discount.
ADVERTISEMENT
The products manuIactured by Keltron are not consumer goods as they are used Ior Iurther production
so it has no requirement to spend huge amount on advertisements. Advertisement thus given is, dealer
shared advertisement. ealers are allowed to release advertisement in newspapers and media on shared
basis. Company would share 50 oI the advertisement cost subject to 0.5 oI the turnover achieved in
respective Iinancial year.

DISTRIBUTION CHANNEL
As any other Iirm Keltron also use both direct distribution network and dealer network. Earlier emphasis
was given to direct network but now-a-days majority oI the sales is through dealers. There are
authorized dealers Ior the company who carry out the required sales operation.

Fig.5.4
MARKETING PLAN AND STRATEGY
Every year Marketing epartment Iixes a yearly and quarterly target with the authorized dealers by
consulting the production regarding the likely demand Ior the product. Further it collects inIormation
Irom its customers and on this basis the company may modiIy the production requirement to suit the
customer`s requirement also segmentation oI the market is done on the basis oI customers and
applicability. This process helps the company to pick the best market where it can be a tough
competitor.
CUSTOMER COMPLAINTS
In order to attain maximum customer support importance is given Ior aIter sale services. Keltron also
takes keen interest in diagnosing and solving customer complaints.
MANUIAC1UkLk
(kLL1kCN)
AU1nCkISLD DLALLkS
NLW DLLnI
AnAMLDA8AD
nDLkA8AD
CnLNNAI
MUM8AI
kCLkA11A
8ANGALCkL
1nIkUVANA1nAUkAM
k
L
1
A
I
L
L
k
S
C
U
S
1
C
M
L
k
S


CUSTOMER SATISFACTION
Customer satisIaction is measured through analysis oI customer Ieedback and complaints, reports oI
marketing personnel, questionnaires, survey oI OEM`s and other suitable methods.

GUARNTEE AND WARRANTEE
One-year guarantee is given to OEM and Government units. In case there are any deIects or shortage in
the quantity the company replaces it and / or provides Iull quantity. A complaint register is provided to
locate complaints.

COMPETITORS
The major competitors in India Ior Aluminum electrolyte capacitors are Punusumi India Ltd.,
Uptron, Webelson, Philips, Incap, Elcap, Elnet, etc. Indigenous competitors are not a threat to KCCL.
But ,due to liberalization oI economy and bringing capacitors under OGL, the company has to compare
with international brands like Rubycon,Panasonic,Sansung,Elna,etc.

BRAND NAME
The brand name oI the company`s product is KELTRON

PACKING
The capacitors are generally packed in the Iollowing ways;
Bulk packing polyethylene bags
Taped Ammo box packing


SALES TURN OVER FOR 10 YEARS

Table: 5.2

YEAR

TURN OVER (IN LAKHS)

2000-01
2819.37

2001-02
2693.29

2002-03
3014.21

2003-04
3089.85

2004-05
2448.6

2005-06
2455.2

2006-07
2382.50

2007-08
2159.42

2008-09
3306.12

2009-10
4470.72


PLANNING DEPARTMENT
Planning is the step in the direction oI setting up oI an enterprise. The process in the planning
includes the decision taken in advance, when is to be done and Ior what purpose is to be done by
considering all constraints.
In KCCL, planning is to done in all areas like production, materials, etc. and every planning
starts with Iorecasting. Marketing department will prepare an annual budget based on demand, trend and
prices existing in the market. By using this, the planning department prepares the usual yearly
production plan. This then sent Ior the consent oI the M, to commence production. Besides yearly
production plan, 3 month production plan and even a monthly production plan will also be prepared
depending upon the requirement oI the market. uring these times the speciIication may vary Irom the
usual speciIication on which the production is carried out. The prepared plan will be then Iorwarded to
the materials department, production department and all other concerned departments. The production
department checks and makes sure that the plant is capable producing that concerned product upon the
needed speciIications. The material department checks the availability oI raw materials in the stores.
Materials is not available, the purchase department will make arrangement Ior purchasing the materials
and aIter the materials have arrived, special work order is given to the production departments

OBE1ECTIVES
The work order prepared is analyzed and the pending work order list should be given
Material shortage list should provided
To reduce wastage as possible
To attain maximum productivity


DEPARTMENTAL STRUCTURE OF PLANNING DEPARTMENT

Fig.5.5

Abbreviations;
HO : Head OI the epartment
SIC : Section In Charge

PLANNING COMMITTEE
The planning committee includes;
O Head oI the planning department
O Head oI the marketing department
O Head oI the production department
O Head oI the personnel department
O Head oI the Iinance department
CIC] SIC
nCD
1IS1]ASSIS1AN1 ASSIS1AN1 ASSIS1AN1 1IS1]ASSIS1AN1


First a monthly budget is prepared and given to each department and Irom the concerned departments
Iurther implementation takes places. Every week a meeting is conducted oI all department heads with
the M. The main objective is to highlight the problem Iaced by each department, to determine
objectives, policies, and strategies to Iinalize a Ieasible solution to the problem.

DUTIES
The main duties oI planning department are;
Prepare the yearly plan based on the yearly marketing, budget and production capacity
Work out material input requirements on the basis oI plan
Prepare monthly plan Ior production
Authorize production based on the plan through work order procedure
Monitor and control use oI material oI production operation
Training oI personnel in the department

o


FLOW CHART OF PLANNING

Fig: 5.6

Yearly production plan
Marketing
E &
Annual material indent
Monthly production plan Marketing
E &
Monthly material indent
Job work outside
Work order closing & Analysis
r
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o
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w
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l
o
r
m
l
n
g

w
o
r
k

o
r
d
e
r

A
s
s
e
m
b
l
l
n
g

w
o
r
k

o
r
d
e
r

Production process
Work order issue

1


ENGINEERING AND DESIGN DEPARTMENT
Engineering epartment will receive the external document or drawings. This drawing are controlled
and given to the concerned person Ior reIerence. The drawing received Irom the customer, are converted
into stage drawing and Iurther manuIacturing process layout.
For the modern products it is useIul to document and analyze the design logic. This means charting
with the desired product attributes and then identiIying the necessary characteristics Ior raw materials
and process steps. Such an approval goes Ior a name as engineering.
In KCCL, the Engineering and esign epartment is concerned with preparing bill oI materials,
altering materials, giving technical support to manuIacture and giving designs according to the order to
suit the customer requirements.
DEPARTMENTAL STRUCTURE OF ENGINEERING AND DESIGN DEPARTMET

HO : Head OI the epartment Fig: 5.7
SIC : Section In Charge
nCD (LNGINLLkING DLSIGN)
CIC]SIC (LNGINLLkING
DLSIGN)
SIC (LI8kAk)
DLSIGN
LNGINLLkING
CCDIIICA1ICN LI8kAk (1LCnNICAL)


MATERIALS DEPARTMENT
Stores and materials department is one oI the most important departments in an industry. This
department Iacilitates the smooth Iunctioning oI production. The main objective oI this department is to
procure raw materials / components / consumables as per procurement plans based on production
requirement schedule. They also procure indirect parts / products consumables or services needed Ior all
other processes. This department receives and preserves the raw material till it is issued Ior
manuIacturing.
In KCCL, the Purchase epartment, Raw material stores and Finished Goods stores come
under the Material epartment.
FUNCTIONS
O Purchasing oI raw material, components, consumable space capital, goods at least cost
O Vendor evaluation and selection
O Maintenance and proper use oI purchasing materials
O Receipt, storage, issue and stock control oI materials
O Training oI persons in department
PURCHASE DEPARTMENT
The term purchasing in a narrow sense reIers merely to the act oI buying an item at a price. A
broader understanding makes it a managerial activity, which goes beyond the simple act oI buying and
includes the planning and policy activities covering wide related and complementary activities.
Purchasing is the key stone oI material management. The purchase committee includes head oI material
department, QA department, engineering and design department, R & , Iinance department with M.
OB1ECTIVE
Purchase oI quality input in right time. Cost reduction through product purchase.


ACTIVITIES OF PURCHASE DEPARTMENT
IdentiIication oI the requirements
Selection oI proper source oI supply
eciding on quality and quantity
Finalising delivery schedule and price
Selecting the supplier
Placing the purchase order
Arranging transportation oI material and goods
Receiving the goods and materials and sending them to the stores
Accepting the goods aIter getting quality approval

IMPORT OF MATERIALS
Planning department Iorwards the material requirement to purchase department on periodic basis (yearly
/ halI yearly). Then the purchase department Iloats enquiry to the established vendor. On receipt oI the
quotation, a comparison oI price and other terms are made and purchase is Iinalized on the most
competitive price tendered. The dispatching is generally by sea. In some cases where the material called
Ior urgent required import is resorted by air. The part oI destination is Chennai and consignment is
cleared through our clearing and Iorwarding agents appointed there. Payment is by irrevocable letter oI
credit/sight, remittance. The raw materials imported by Keltron are eligible Ior concessional rate oI
customer duty Ior which they submit details in a speciIied Iormat through eputy Commissioner oI
Central Excise Kannur to commission oI customs Chennai. The Iorwarding agents clear the consignment
oI Chennai port and dispatch the same to Keltron. The terms oI price as per Reserve Bank oI India
regulation is Iree on board. So insurance is converted by Keltron and in the amount oI damages loss, iI
any in transit claim is aIIected to the underwrite Ior getting the loss settled.

PROCESS FLOW CHART - PURCHASE

Fig: 5.8

UkCnASL kLUSI1ICN 1C UkCnASL SLC1ICN
SLLLC1 SU8CCN1kAC1CkS IkCM AkCVLD CCN1kAC1CkS LIS1
SLND CU1 LNUIk UA1ING SLCIIICA1ICN IkCM
CCN1kCLLLD CCILS
CCMAkL kICL AND kLVICUS LkICkMANCL CN UALI1
DLCIDL CN VLNDCkS]AkCVL UkCnASL
kLAkL UkCnASL CkDLk
VLkII CkDLk ICk 1LCnNICAL]CCMMLkCIAL
CCMLIANCL AND SIGN
AkkANGL LL11Lk CI CkLDI1]C1nLk AMLN1 ICkMALI1ILS
WnLkLVLk kLUIkLD
ICLLCW U WI1n VLNDCk ICk DLLIVLk
AkkANGL CCLLLC1ICN CI DCCUMLN1S IkCM 8ANk
CUS1CMLk CLLAkLNCL 1kANSCk1 1C IAC1Ck
kLCLIVL MA1LkIAL VLkII UAN1I1 LCCAL CLLAkLNCL 1kANSCk1 1C IAC1Ck


RAW MATERIALS STORE
AIter inspection, the purchased materials are taken into stores Ior preservation, iI they are meant Ior
stock. Non stock items are directly taken to assembly lines Irom inspection. Preservation, storage can
contribute to eIIective operations.
PURPOSE
1. To establish and maintain storage proceedings
2. Receipt oI correct materials
3. Proper storage oI materials without deterioration in quantity
4. Issue oI correct materials Ior use
SCOPE
Raw materials, Components, Consumables Ior production in capacitor as well as E&F plants oI
KCCL
General stores
Spares
Equipments, tools etc
INVENTORY CONTROL TECHNIQUES
ABC ANALYSIS
It is not desirables to keep the same degree oI control oI all items. The Iirm should pay
maximum attention to those whose value is highest. The Iirm should thereIore classily inventories to
identiIy which items should receive the most eIIort on control. The highest value items are classiIied as
A` class, and would be in tightest control. The C` class represents the least value and would be under
simple control. B` class item Iall in between the two categories and require reasonable attention and
management. The items Iall in A` class are Aluminum Ioil, Tissue paper, Condenser, Chemicals and
paddles, etc which are given must care.
VITTAL, ESSENTIAL, ESIRABLE (VE)


MA1OR RAW MATERIAL
Aluminum Ioil, Robber bung, Tab lend, Sleeves PVC, Metro phenol, Bitumen Shalimer, Solder wire
Ilex, Brass bullet, PVC tubes, Clamps, Label and Gasket
There are mainly 299 major raw materials used Ior diIIerent production process. The material handling
equipment used in stores are Trolley, Cash, Pulley block and rum trolley.
LOCATION
The Raw Material stores in two locations one is attached to capacitor production plant and other on is
in the Etching and Forming building
STOCK CONTROL
O Stock control oI spares, general items and consumables is done by stores
O Bin cards are marked with Reorder Level and Reorder Quantity
STOCK VERIFICATION
Materials are veriIied physically at least once in a year against records
SCRAPS MANAGEMENT
Scraps arising out oI production processes are consolidated at scraps yard in diIIerent locations as
marked Ior each. All scraps are disposed oII on sealed tender or otherwise periodically.
SUB CONTRACTORS
It may sometimes become necessary to get some speciIic job work done like sleeve printing etc. through
outside source. In such cases the planning department issue work orders and then the contract is given
by the materials department to one oI the sub contractors on the basis oI the list they maintain. The
materials are received by Keltron Irom the sub contractors and sent Ior inspection. The bill oI the party
is sent to accounts Ior eIIective payment.


SAFETY MEASURES
Petroleum, Oil and Lubricants are stored in separate area. High speed diesel oil stored in overhead tank
in a separate Ienced area. Stores door is sealed at the close oI working hours with signature oI the OIC
on gummed paper pasted on the door, which is checked at time oI opening next day.
RECORDS MAINTAINED
a) Store Requisition Note
b) Bin Card
c) Store Return Note
d) Material Gate Pass
e) Purchase Requisition

ORGANISATION CHART OF RAW MATERIALS STORE

Fig: 5.9
HO (materials)
OIC stores
SIC stores (1) SIC stores (11)
Assistant Store Keeper
Assistant Store Keeper
Helper Helper Helper Helper Helper Helper


FINISHED GOODS STORE
Raw materials aIter passing through various operations is converted to Iinished goods which are ready
Ior sale. These goods are stored in the Iinished goods store. The First In First out (FIFO) method is used
at the time oI dispatching. II the buyer reject any batch oI Iinished goods are taken to Raw material
department and the inIormation is sent to QA department and then re-credited to the FG stores.
FUNCTIONS
O The produced capacitors aIter being passed by the QA department are sent to stores with delivery
note.
O The primary packing is done and the cartoons are labeled and the cartoons are placed in the
speciIied Bin according to the location.
O For accounting purpose a copy oI the delivery note goes to EP department.
O The EP prepares the packing list. On the basis oI the packing list the materials are taken Irom
their respective location and secondary packing is done and Iinally makes the materials ready Ior
dispatch.
O The invoice Ior the goods to be dispatched is prepared.
O ocuments Ior dispatch;
a. Forwarding note to transport
b. eclaration
c. Sales tax Iorm
d. Copy oI invoice
e. Packing list
O Materials are then transported, iI required by the customer
O Receive a lorry receipt or parcel way bill, through courier or local hand delivery
O Ensure that the materials are received on time by the consigned party
O Maintains document pertaining to central excise submission oI monthly returns to Central Excise
authority.


ORGANISATION CHART OF FINISHED GOODS STORE

Fig: 5.10

HO (materials)
OIC stores
Store keeper Store keeper
Helper Helper Helper Helper
Helper Helper

o

FLOW CHART OF FINISHED GOODS STORES

Fig: 5.11
Credited materials
collecting Irom
manuIacturing
VeriIying
primary
packing &
labeling
Issuing oI
materials
against PS
checking
strapping
Checking oI
invoice
against BA
Iorwarding
note gate pass
ispatching
Quantity
Checking
Sealing
Locating

1

PRODUCTION DEPARTMENT
Production is the process oI conversion oI a set oI inputs into a speciIied set oI output, either in the Iorm
oI Iinished goods or services, meeting the quality and thus achieving the quality policy oI an enterprise.
The inputs are men, materials, capital employed, inIormation and energy. The production or the
manuIacturing is the business activity oI industrial unit on which the activities oI other departments
work upon. The main aim oI this business system is to produce the end products either in the Iorm oI
goods or services economically, utilising the available resources, and thus satisIying the customers Ior
which they are meant.
This process starts when once the department receives the order Ior production.
According to the nature oI the market, the marketing department oI KCCL analyses the Iuture demand
Ior the capacitors and takes decision along with the managers oI Planning &Control and the Production
epartment. The demand Ior the capacitors won`t be the same throughout the year. It may diIIerent
monthly schedules. The work order is issued to meet the speciIic demand oI the customer. A batch
production order is issued Ior keeping the goods in stores pending orders or when a number oI
customers order Ior the same product.
The machinery used Ior the production purpose is Iully automated.

DEPARTMENTAL CHART OF PRODUCTION DEPARTMENT

Fig: 5.12

kCDUC1ICN IN CnAkGLS
CLkA1CkS
SLC1ICN IN CnAkGLS
nCD

VARIOUS STEPS INCLUDED IN PRODUCTION OF CAPACITORS
To produce capacitors with the required speciIication, the raw materials like cathode & anode Ioil,
electrolyte etc have undergo certain stages oI production. The various steps are Iollows:

SLITTING

Slitting is a section where the etched raw materials are cut length wise based on work order given Irom
Planning epartment. AIter slitting process the material again goes to the quality desk where the quality
inspector checks and approves it.
PRINTING
In this section the printing in various colour sleeves are carried out. A brieI detail about the capacitors
like volt, name, value, brand name etc.., are printed on a PVC strip or a colour sleeve which at last will
be stuck to the capacitor.
STITCHING AND ROLLING
Stitching and rolling are two diIIerent processes. There are machines which can perIorm both the work
simultaneously or diIIerent machines to perIorm these two diIIerent works individually.
Stitching is the process by which, a thin needle are stitched to the anode and cathode Ioil. The stitching
will be oI star Iormation. This is because the star Iormation will increase the surIace area rather than
normal or circular stitching. Now these two needles act as the terminals in the capacitor.
While rolling, the anode Ioil are separated with a special thick paper and rolled according to the
speciIications needed Ior diIIerent capacitors. The length and the breadth oI the Ioils to be rolled will be
diIIerent and this deIines the character oI the capacitors. i.e. Ior higher volt & higher temperature
capacitors the Ioil will be broader and longer than that oI the low volt & temperature capacitor.
IMPERGNATION
The rolled up Iorm will not have any value or speciIications. For this stitched and rolled capacitors are
kept in a solution which is called the electrolyte. This process oI keeping the capacitor dipped in the
electrolyte is to get the desired value. The time required Ior impregnation deIines the voltage oI the
capacitors it will take at least two hours.
SEALING SLEEVING - HOT SRINKING AND ASSEMBLING
AIter impregnation , the above semi- Iinished goods are sent Ior sealing and sleeving. The impregnated
capacitor will be manually put into an aluminum can with one end open. This open end will be closed

using a rubber bunk. The rubber bunk will be having two tiny pores through which the two terminals
come out. This entire process is called sealing.
AIter sealing, the capacitors are sent Ior hot shrinking. The printed colour sleeve is rolled over the
capacitor and pressure is given over it along with temperature so that the sleeve remains stuck over and
around the can oI the capacitor.
AGEING AND TESTING
Ageing is the testing process through which electric voltage is given to the capacitor. Then it is tested to
see whether it is working properly and has the right voltage and there is no short. The sealed coil goes
Ior ageing and then it is tested. II the capacitor is good it is sent Ior Quality Assurance. II it is tested bad
then iI re-ageing is possible, then re-ageing is done and it is tested. II it cannot be re-aged, it is rejected.
Ageing and testing can be done both automatically and manually the capacitors are put in a trolley and
loaded, voltage is passed. Then it is tested. Sometimes capacitors are tapped. This is manually done Ior
computer motherboards etc; only customer requirement.
QUALITY CONTROL
AIter the testing oI capacitors, it is sent to the Quality Assurance epartment. So that it can be checked
Ior proper Iunctioning in order to get 100 satisIaction Irom customer.
PACKING
Only passed items are packed into multiples oI hundreds and sent to Iinished goods store. It may be
packed according to customers requirements like tape packing, bulk packing etc.
STORE
The Iinished capacitors is then send to to store, Irom where it is sold to dealers on the Iirst come Iirst
serve basis i.e., FIFO method.
WASTE MANAGEMENT IN KCCL

In KCCL the overall percentage oI waste in production is just 2. To bring the waste to minimum,
KCCL has Iormed a separate Material Review Board, under the chairmanship oI Production Manager
and one representative Irom Research and evelopment, Quality Assurance and Planning epartments.
The main aim oI this MRB is to avoid scrap by reviewing the reviewing the rejected capacitors through
various developments. The board may recommend Iurther process to make those rejected into acceptable
products. But still there may be some, which can`t be reprocessed and they are rejected as scraps.

FLOW CHART OF PRODUCTION

Fig: 5.13
S1CkL (kM)
SLI11ING
kIN1ING
S1I1CnING
kCLLING
IMkLGNA1ICN
SLALING SLLLVING nC1 SnkINkING
ASSLM8LING
AGLING 1LS1NG
UALI1 CCN1kCL
ACkING
S1CkL (IG)

ETCHING AND FORMING DEPARTEMENT
Keltron also entered into etching and Iorming oI aluminium Ioil as part oI diversiIication,
modernization and expansion plan.

ETCHING
Etching is the process b y which the eIIective surIace area oI the anode Ioil is electrochemically etched
to increase the surIace area by about 50 times Ior most conventional Ioil. In recent years, research and
development is done in this department and considerable increase in surIace area is obtained which
result in capacitors oI compact size.
FORMING
In making capacitors the Iirst process is Iorming. It is an electrochemical oxidation process to develop
aluminium oxide polarized barrier on the etched Ioil at diIIerent volts to make use oI the capacitors to
diIIerent working voltage.

ETHING METHODS
The Iollowing are the etching methods Iollowed:
O AC etching
O C etching
O Superimposed C with AC
RESPONSIBILTY OF HOD
O To ensure that suitable equipment are used Ior process.
O Marinating production equipment
O Control and co-ordinate Iunction oI chemical laboratory
O To issue documented procedure containing working instructions


DEPARTMENTAL STRUCTURE OF ETCHING AND FORMING DEPARTMENT

Fig: 5.14

HOD
FORMING OF
ALUMINIUM FOIL
CHEMICAL AND
PROCESS CONTROL LAB
MAINTENANCE
DEIONISED WATER
PRODUCTION
EFFLUENT
TREATMENT
PLANT

CALIBRATION DEPARTMENT
Measurements are made using a variety oI instruments ranging Irom very simple t extremely
sophisticated. We must have conIidence that all those measuring instruments are giving us valid useIul
data. That conIidence is proved by Calibration. Calibration is the set oI operation oI determining the
values oI errors oI measuring devices to traceable standard. The set oI operation which establish under
speciIic condition, the relationship between values oI represented by a material measures or a reIerence
material and the corresponding values by the standards.
ELEMENTS IN CALIBRATION DEPARTMENT
Adequacy oI standards
Calibration procedure
Traceability
Recall system
Calibration report
Labelling practice
Calibration intervals& adjustments techniques
Environmental conditions
Outside calibration sources
ORGANISATION CHART OF CALIBRATION DEPARTMENT

Fig: 5.15
HO
OIC/SIC
Typist/ Assistant Assistant Assistant Typist/ Assistant


CALIBRATION PROCESS
Calibration makes sure readings are correct. Various steps make up whole calibration process Ior the
company.
Calibration is used worldwide. In Keltron, the calibration process starts with external calibration. All the
meters oI Keltron are being calibrated using the diIIerent calibration devices. These calibration devices
are Iirst calibrated externally Irom Fluid Control Research Institute, Palakad and Electronic Regional
Test Laboratory (south), Trivandrum. Then all the meters oI Keltron are checked with these meters are
calibrated within this period. In short, they make sure that each meter gives the accurate reading. The
Iirm makes sure that all the equipments in the company are calibrated beIore the guarantee period oI the
calibrating devices.
At the beginning oI every year all the department gives a list oI equipments to be calibrated. Based on
this list the calibration department prepares a schedule oI when to calibrate. The listed equipments are
calibrated according to the schedule.
Every calibrated meter is labeled to make aware the workers about the reading status oI the meter.

THE METERS ARE LABELLED AS FOLLOWS
The labels used by the calibration department are as Iollows:
O GREEN valid calibration
O YELLOW-cleared Ior limited use
O RED-instrument shall not be used Ior measurement
O BLUE-calibration not required |Ior indication purpose only

FLOW CHART OF CALIBRATION

Fig: 5.16
CH : Concerned epartment Head
IMT : Inspection, Measuring and Testing equipment
PE : Plant Engineering
CH & HO (C) decide on IMTS to be calibrated
OIC (C) maintain list oI IMTS to be calibrated
OIC (C) prepare schedule Ior calibrated
User depts. Sent IMTS to C
Check
Ior in
house
Repair by PE/
external agency
HO
(C)
decide
Calibrate
Record in
register/ Iile
Send IMT to CH
with sticker/ report
Get IMT calibrated by
external agency
C liase with external
agency
Get back IMT and
calibration report
CuL of
CallbraLlon
Use with correction Iactor
accept error
Not available

o

QUALITY ASSURANCE DEPARTMENT

The duties oI Quality Assurance department include central examination oI raw materials, components
and Iinished products. All type organizations are trying to increase their quality so that the customers
will be loyal to their products and they will purchase the products again and again and they may also tell
others about this product.
II Iound the quality is satisIactory and the components and Iinished goods conIorms to the pre
determined speciIication the department issues acceptable certiIicate. For this the department has
qualiIied and competent staII. The company has strict and unIaultable system oI quality control right
Irom the procurement oI raw material to the sale oI Iinished goods, ensuring that only good quality
material is passed to the next stage. Absolute traceability is maintained right Irom the raw material
supplier to the Iinished goods, to analyze the cause oI deIects whenever they occur. Quality oI the
product is very important Ior the existence oI the company. It will increase the good will oI the
company.
FUNCTION
The quality appraisal oI the department is carried stages as Iollows:
1) Raw material inspection
2) patrol inspection
3) Final inspection

Finished products (Capacitors) are inspected Ior the deIects, which are also categorized into three,
namely:
1) Critical deIects
2) Major deIects
3) Minor deIects

1


DEPARTMENTAL STURCTURE OF QA DEPARTMENT

Fig: 5.17

PCu (CA)
ClC/SlC ln process
lnspecLlon llfe LesL
ClC/SlC flnal lnspecLlon ClC/SlC recelvlng
lnspecLlon
lnspecLor
ln process
lnspecLlon
lnspecLor
llfe LesL
lnspecLor
8adlal
secLlon
lnspecLor
Axlal
secLlon
lnspecLor
Large can
secLlon
lnspecLor
AC moLor
sLarL
M
capaclLor
wound
elemenL
LLl Al
anode
caLhode
foll
LesLlng
8aw
maLerlal

general
lLem
lnspecLl
kv8
capaclLor
lnspecLlon
LesLlng
aLrol
lnspecLlon
CuLgolng
lnspecLlon
lnspecLor lnspecLo lnspecLor
lnspecLor lnspecLor


RAW MATERIAL INSPECTION
The materials which are imported Ior production are being inspected and the quality is assured .
The materials are accepted only when the quality oI the diIIerent material are assured. Some require
100 conIormance as speciIied. Those materials that do not give 100 conIormance are not accepted
because it may adversely aIIect the quality oI the Iinished product. Minor deviations Irom the standard
are overlooked. AIter the raw materials are imported it will be checked with the company`s own
standard . II there is a major deviation Irom the standard, sometimes they are also cleared Ior use iI end
products are marketable. This acceptance is called conditional clearance.
PATROL OR IN-PROCESS INSPECTION
In, KCCL, the quality assurance continues when the production is in progress. Here the inspector
goes to the plant and check whether the products, aIter each process , satisIies the accepted standard.
The person assigned Ior this purpose is named Patrol Inspector. II there is any critical problem it will be
reported to the HO and action will be taken depending upon the nature oI the deIect noticed.
OUTGOING INSPECTION
This is carried out on the Iinished goods. Here the inspection starts aIter ageing and testing
process are done to the capacitors. KCCL produces around 500K-600K capacitors per day .Quality
controller checks the output by a sample oI particular batch under the standard IS -10673. This is the
standard which is used by the Government oI the India Ior all electronic equipment. The deIects are
expressed in percentage level. It will be withdrawn and Iurther rework will be made. In case oI capacitors,
the major parameter is the electrical parameter, and is 100 vested by ageing and testing. Other
parameters are checked by a subsection oI manuIacturing department by method oI sampling


FLOW CHART OF FINAL INSPECTION & TESTING

Fig: 5.18

CA
Samples
lnspecLlon
ClC/
SlC
sL
Llme
rework
sL Llme
re[ecLlon
2
nd
3
rd
Llme
re[ecLlon
2
nd
Llme rework
manufacLurlng
3
rd
Llme rework
manufacLurlng
M88
8e[ecL for
dlsposal
ACC/ACu
assed
rellmlnary
acklng
lC sLore
ManufacLurlng
2
nd
Llme
re[ecLlon
PCu
(CA)


Table for single sampling plan for normal inspection
LOT SIZE SAMPLE SIZE CRITICAL
(0.01 AQL )
MAJOR
(0.25 AQL)
MINOR
(1.O AQL)
02-150 20 0 0 0
150-500 50 0 0 1
501-1200 80 0 0 2
1201-3200 125 0 1 3
3201-10000 200 0 1 5
10001-35000 315 0 2 7
35001-150000 500 0 3 10
150001-500000 800 0 5 14
50000 and above 1250 0 7 21
Table: 5.3


RESEARCH AND DEVELOPMENT DEPARTMENT

R& plays a crucial role in electronic industry. Innovation and quality control are major concerns oI
this department. II the company has to survive in the present highly competitive market, Research and
evelopment has to come out with innovative product and constant up-gradation oI technology. KCCL
allocates 0.5-1 oI turnover Ior Research and evelopment purposes.
FORMING OF ALUMINIUM FOIL
Etched and Iormed aluminium Ioils are the major raw materials Ior the production oI electronic
capacitors. The manuIactures oI electrolytic capacitors have been importing this item since the
technology Ior etching and Iorming Ior the aluminium Ioil is not available in India. The company Ior the
Iirst time in India developed the technology Ior Iorming oI high voltage and low voltage Ioil in its in-
house Iorming plant. The plant was designed and developed by the engineers oI the company and the
Iorming machine is Iabricated locally.
ETCHING PRO1ECT
Etching technology Ior etching oI aluminium Ioil is yet to be established in India. The company has
already developed indigenously the technology Ior etching oI low and medium gain capacitors.
OTHER ACTIVITIES
Research is going on Ior the development oI technology Ior the manuIacture oI the electrolyte
indigenously. The Research and evelopment is trying Ior the up-gradation oI the technology by
reducing the size oI the component in par with the Japanese product. The department is trying Ior the
vertical integration oI the manuIacturing process.


DEPARTMENTAL CHART OF R & D DEPARTMENT

Fig: 5.19

PCu
SlC 8CuuC1
uLvLLCMLn1
SlC LLLC18CL?1lC
uLvLLCMLn1
SLnlC8 1?lS1
1LCPnlClAn
A8Ln1lCL
1LCPnlClAn
A8Ln1lCL


FLOW CHART FOR RESERCH AND DEVELOPMENT

Fig: 5.20
uLSlCn lnu1
C8CAnlSA1lCn Anu
1LCPnlCAL ln1L8lACL
8CvlSlCn uLSlCn
uLSlCn 8LvlLW
18AlL 8CuuC1lCn
uLSlCn vL8lllCA1lCn
uLSlCn vALluA1lCn
llnAL uLSlCn 8LvlLW
uLSlCn Cu1u1


CHAPTH
SWC1 X ICL1tL*S AA1SIS

SWOT ANALYSIS
SWOT stands Ior Strength, Weakness, Opportunities and Threats oI an organization. The crucial Iact
oI a multinational strategy is to be determining the direction oI multinational business and course oI
action to be adapted to each oI the destination. This is possible only when comprehensive SWOT
analysis is made in a detached and oI compact the threats to the business. The management can identiIy
those opportunities in diIIerent countries, which the Iirm with its existing capabilities can exploit Iully to
improve its proIitability and grow successIully.

STRENGTH

ISO 9001:2008 certiIication
Government owned company
Well experienced technical experts and supporting staIIs
High quality products
Better customer service
Good inIrastructure
Brand image
Fully and semi automated production system
Total Quality Management is adopted
Attitudes and commitment oI the employees is excellent
Easy accessibility by road and rail
Good employer-employee relationship
It is the only capacitor manuIacturer in Kerala

o

WEAKNESS

The company is not running at Iull capacity
Lack oI improved and new machines
Poor Iorecasting techniques
Problems in recruitment
Periodical changes in government policy
High priced compared to other brands
InterIerence oI Government and other political parties
There is high dependability on the import oI raw materials
iversiIication is very slow

OPPERTUNITIES

iversiIication oI products opens ample opportunities Ior the organization
Few competitors
R & to undertake new product development
Company is capable to do exports
ay to day expanding markets
High demand Ior the product
Emerging technologies

THREATS

High cost oI production
Political interIerence
Entry oI new players
Globalization
80 raw materials are imported
Hike in transportation cost
Turnover oI highly skilled technicians

1

PORTER`S FIVE FORCES MODEL
Fig: 5.21
Threat of new entrants
Keltron is presently Iacing threat oI entries oI new Iirms.
High competition.

Threats of substitutes.
ecrease in market demand
Product diIIerentiation
High advertising costs

Bargaining power of suppliers
The suppliers have the bargaining power to demand what they want.

Bargaining power of buyers
KELTRON has no bargaining power because there is many other rival companies.

Rivalry among existing firms
It is common in this Iield.


CHAPTH
tI1ICS. StCCtS1ICS A1 CCC1tSSICS


FINDINGS
Government oI Kerala has approved the merger oI Iour subsidiary companies oI Keltron.
Keltron produces high quality products but at a comparatively higher price than its
competitors.
As Keltron imports raw materials, import cost is high leading to a loss as the sales price is
not able to cover the loss.
Government control has also a bad eIIect on the company, being there has been no
recruitment since many years.
Presence oI good industrial relation with the local unions and there is greater co-operation
between management and employees.
A good co-ordination exists between diIIerent departments.
Most oI the products are produced as per the order.
Globalization had a bad eIIect on the company.


SUGGESTIONS

Reduction oI cost is must Ior the company to survive
The company try to sell its product at competitive price
The company can save time and cost through the computerization.
Company should carry on diversiIication.
The company should adopt modern perIormance appraisal system.
The vast scope iI the company Iocus on the IC capacitors since the present demand is high and is
expected to be so in the coming years.
It is better Ior the company to develop new soItware which can be connected to the web so that
the customers can directly make orders (E-commerce).
It should modernize the machines.


CONCLUSSION
Keltron has initiated steps to create knowledge and innovations in the electronic Iield. It is the
one oI the leading capacitor manuIacturing companies in Kerala. It is ISO 9001 certiIied Iunctioning
company. It has been always been able to provide high quality products. It has also a super esign &
Research section that help in providing capacitors according need oI the customers. And also they have
a well experienced technical experts and supporting staIIs Ior the accomplishment oI the goals oI the
company.
The Organization study in Keltron helps me to understand the various Iunctions in an
organization and how it is connected with our management theories. . I get a good idea about the history
and proIile oI 'KELTRON to enlarge my idea in the business world. And also the study has given me
an insight into the working oI an organization engaged in the production oI electronic equipments. Here
in this study I also Iound the problems Iaced by most public sector undertakings. I wish all the very best
Ior the company and I once again express my gratitude to the entire persons who helped me to complete
the organizational study.


BIBILIOGRAPHY

BOOKS
1. Cherunilam Francis (2005), Business Environment. Text and Cases, New elhi: Himalaya
Publishing House.
2. Sekaran Uma (2006), #esearch Methodology for Business A Skill Building Approach, New
elhi: John Wiley & Sons Inc.
3. S.S. Khanka. (2007) uman #esource Management (Text and Cases) , New elhi.

WEBSITES
1. www.keltron.org
2. www.capacitorindustries.com
3. www.keltroncom.com
4. www.Wikipedia.com
5. www.google.com

MANUALS
1. epartment Manuals and balance sheet oI Keltron.


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