REPORT ON

INPLANT TRAINING
DONE AT

STEEL COMPLEX LIMITED

CALICUT, KERALA

Submitted By

CONTENTS

Chapter 1 Chapter 2

Introduction Design of training and organization study

2.1 Objectives of the training 2.2 Scope 2.3 Methodology Chapter 3 Industry profile Chapter 4 Company profile Chapter 5 Product profile Chapter 6 Organization structure 6.1 Organization chart Chapter 7 Nature and growth of organization 7.1 Vision 7.2 Mission 7.3 Goal 7.4 Quality policy 7.5 Capacity and product mix 7.6 Plant location and layout of the mill Chapter 8 Management Chapter 9 Functional areas 9.1 Works department 9.2 Materials department 9.3 Finance department 9.4 Personnel department Chapter 10 The seeds of success story

10.1 MOU sign Chapter 11 SWOT analysis at SCL 11.1 Strength 11.2 Weakness 11.3 Opportunities 11.4 Threats Chapter 12 Chapter 13 Findings Suggestions and Recommendations

Chapter 14 Conclusion

Acknowledgement
First of all I thanks ma father who given good support for doing this inplant training at steel complex limited. Then I thank Sir. T.K. Sudhakaran who is the D.G.M(pers.) of Steel Complex Limited who given a big support and ideas for me about how to do and what is inplant training. Then the most helpful person for me in studying the plant deeply who is very friendly and co-operating with me and he teach me a lot about the plant and its working Mr.Kuriakose is a supervisor under production section Im really thank u sir for helping me, Sir. Janardanan , Sir. Kutti Ali, Sir. Mohan Das, Sir. Mera these 4 persons are under 4 different sections who given the detail class about their sections . And Im really thank full to all of them. There are 2 trainers under mechanical and production sections Mr. Hithu Anand and Mr.Pratheesh who helped me a lot in this training period they given me a moral support for doing this training and Im happy with their support Im really thank full for their help and thanks for all other staffs of Steel Complex Limited who helped me during the period of this training

1. INTRODUCTION
Gods own country- Kerala is the place where the mini steel plant STEEL COMPLEX LIMITED is located. It contains different departments for its smooth functioning such as, personnel department, work department, financial department and commercial department. Each department works under efficient heads. The STEEL MAKERS OF THE STATE-SCL is a Government company. SCL produces quality steel in its production department. Quality control department tests the quality of scrap and analyze the heat sample. Maintenance department is responsible to maintain machinery as well as plant which contain electrical as well as mechanical section. Material handling systems are also adopted in the concern. Sales department engaged in exchange of billets or steel to buyer. SCL situated in Feroke, Calicut. The company was originally promoted in the joined sector between the Kerala State Industrial Development Corporation Ltd (KSIDC) and the private entrepreneur in 1969 SCL produces BIS products only. Centralized purchase is maintained by purchase department. It supplies the needed material and minor item from the home country and major items are importing from foreign country. Human resources are treated in good way in SCL with the help of personnel department. Attendance, recruitment, motivation, leaves etc comes under its circle. Life blood of the organization is given by finance department. Sales proceeds and financial aids of government are the main sources. It has its own accounting policy. Money transactions are mainly with State Bank of India. It issues and rise money from shares, KSIDC, Government of Kerala, IDBI, ICICI. Above 200 employees are working in the organization. SCL has a proud position among the public sector undertaking in Kerala. Company maintains a good relationship with customers as well as public. The government is initiative in the quality checking of the steel. In the initial stage company had a capacity of 37000 tones per annum. Latter it increased to 55000 tones per annum and in 1986 took over Malabar steel re-rolling mill. Steel Authority of India (SAIL) is signed an

agreement with SCL. As we know, Government Company is a company which posses not less than 51% of share capital by the central government or government and partly by the central government and partly by one or more state governments. The company was not functional during the period July to August 1995. The company re-opened in august 1995. The vision and mission of the company make it different from other companies of steel making in Kerala. They are the steel maker of the state. Steel industry maintained a dominant role in the industrialized countries. As the steel makers SCL provide steel of different grades and size to its users. SCL enjoys all the privileges as a government company in the production of steel in Kerala.

2. DESIGN OF TRAINING AND ORGANIZATION STUDY

2.1 OBJECTIVES

. To familiarize with the organization . To familiarize with different departments in the organization and their functions . To understand thoroughly how key process in the organization are carried out . To understand how information is used in organization for the purpose of decision making at various levels . To relate theory with practice . To study various problems faced by organization . To find out strength and weakness of the organization . To find out opportunities and threats faced by the organization
2.2 SCOPE The study is basically aimed at the exploration of various functions undertaken by each departments of SCL, Calicut. It provides a better understanding at functional level of each department i.e. works, materials, finance and personal departments. Apart from that interaction and interrelationship between different departments come under this study

2.3 METHODOLOGY This study was undertaken by visiting SCL at Calicut for duration of 75 days. The information was collected by interacting with top management and concerned heads of various functional departments. Interactions with the workers were also helpful. Few data were collected from secondary sources i.e. referring to company brochures, reports, manuals, web pages etc

3. INDUSTRIAL PROFILE
Steel industry in India is on an upswing because of the strong global and domestic demand. Indias rapid economic growth and soaring demand by sectors like infrastructure, real estate and automobiles, at home and abroad, has put Indian steel industry on the global map. According to the latest report by International Iron and Steel Institute (IISI), India is the seventh largest steel producer in the world. The Indian steel industry is organized in three categories i.e., the main producers, other major producers and secondary producers. The main producer and other major producers have integrated steel making facility with plant capacities over 0.5tm and utilize iron ore and coal/gas for production of steel. The main producers are Tata steel, SAIL, and RINL, while the other major producers are ESSAR, ISPAT and JVSL. The secondary sector is dispersed and consist of (1) Backward linkage from about 120 sponge iron producers that use iron ore and non-coking coal. (2) Approximately 650 mini blast furnaces, electric arc furnaces, induction furnaces and energy optimizing furnaces that use iron ore, sponge iron and melting scrap to produce steel; (3) Forward linkage with 650 re-rollers that roll out semis into finished steel products for consumer use. SAIL, the largest public sector corporate entity have invested large amount for up gradation of technology and equipment at their integrated steel plants at Bhilai, Durgapur, Rorkela, Bokaro & Burnpur. SAIL become largest manufacturer of steel in India and one of the top 10 steel makers in the world. Large scale modernization and renovation programs have helped SAIL to keep itself abreast of the developments in steel technology and to translate the same to its steel plants so as to move with the time. In order to meet the gap in demand for wire roads, rounds and structural, a new integrated steel plant was established in Vizag styled as Rashtriya Ispat Nigam Ltd in 1992 with the capacity of 2 million tones of finished steel.

The private sector integrated steel plant of the Tatas viz., Tata Iron & steel Ltd at Jamshedpur, which was having a capacity of 2.5 million tones of saleable steel established a new Hot Strip Mill with a capacity of one million tones. Three majors in the secondary sector, who have leaped forward to expand though electric arc furnace route and consolidate their position through technological excellence were Essar group, Jindal group and Ispat group. Essar group, the flagship company of the group, viz., Essar Gujarat Ltd., the largest manufacturer of hot briquetted iron, a substitute for steel scrap in steel making, has its three module plants in Hazira, Gujarat with a capacity of 1.75 million tones. The Jindal organization comprises of 4 steel manufacturing companies, viz., Jindal strip Ltd., Saw pipes Ltd., Jindal Iron and Steel Ltd. The Nippon Denro Ispat Ltd., the flagship company of the group, have their plants near Nagpur, manufacturing about 4lakhs tones of steel Other steel majors who have consolidated position by putting up new facilities or enhanced such facilities through modernization programs during the period were Lloyds steel, Bhushan steel, Bellary steel, Malavika steel, Bhuvalka steel etc.

4. COMPANY PROFILE

SCL is the only mini steel plant owned by Govt. of Kerala. The company was originally promoted in the joint sector, with KSIDC (Kerala State Industrial Development Corporation Ltd. ) and private entrepreneur in 1969 The promoters of the company were S.A.Jiffery, A.K.Kadaekutty, N. Ramananda Rao, R.N.Menon and K.T.Joseph etc Initially the plant had a capacity of 37000 tones per annum. The company commenced commercial production of mild, medium carbon and spring steel billets of 100mm square in Aug 1973.As a part of rehabilitation package KSIDC raised its share holding in SCL to more than 50% in 1979. And thus it became subsidiary of KSIDC. In 1983, SCL undertook an expansion scheme by adding the third electric arc furnace by which the production capacity was raised to 55000 tones / annum. Because of unavailable operation and & working capital shortage, the company was required to BIFR in 1992. The revival scheme submitted to BIFR trough the operating agency-IDBI; was approved in 23-051995.The scheme is for 10 years. The company is expected to make net profit and cash surplus from 19971998.The net worth is expected to turn positive in the year 2003-2005, and the accumulated losses are expected to be wiped by 2005-2006. The company was not functional during the period July to August 1995. The company re-opened in August 1995 and production started in October 1995 under the approved BIFR scheme. Due to the previous constraints company was not able to achieve the consigned production of 4000 tones per month and sales realization of 444.50lakhs per month. It was also expected to set up a rolling mill during the last quarter of 1996-1997 by suing the fund of differed sales tax 10

A glut in the steel had teed the stock of material and down the production level. The product were marketed only to the government departments during the last few years the company was finding itself difficult to collect the outstanding from those government departments, which effected the working capital requirement of the company adversely As 50% of the cost is involved in raw material scrap, procurement of item is very expensive. The scrap is usually imported from foreign countries under irrevocable letter of credit (LC) opened by the company. When company was facing financial difficulties for opening LC and importing scrap, the company was left without production. Due to raw material shortage, the company led to shortfall in production. SCL made a joint venture with steel giant Steel Authority India Limited (SAIL) on 10th December 2008

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5. PRODUCT PROFILE

SCL marketing two kinds of products 1. Steel billets 2. Rolled steels This billets and rods are including within three ISI grades. They are A) IS2830 ( Standard Grade ) This include two grades a) Grade1 = C20A ( Orange 2 dot ) Specification: Cequi < 0.42(max) C = (0.17-0.23) Mn = (0.30-0.60) Si = (0.10 min) P&S = (0.050 max) b) Grade2 = C20mmA ( Orange 1 dot ) Specification: Cequi < 0.42 (max) C = (0.17-0.23) Mn = (0.60-1%) Si = (0.10 min) P&S = (0.050 max) B) IS2831 ( commercial grade ) Specification: 12

C = (0.15-0.25) Mn = (0.30-0.60) Si = (0.10 min) P&S = (0.055 max) {Cequi = C+ Mn/6+ (Cr+Mo+V)/5+ (Ni+Cu)/15}

6. ORGANISATION STRUCTURE

Organization structure is a basic framework within which managers decision making behavior take place. Structure basically deals with relationships. It is an important scientific concept. All science try to discover the structural relationship in the phenomenon in which they are interested in management, it is needed to understand how organization are structured and how these structures are crested and maintained. In a simple term, structure is a pattern in which various parts or components are interrelated or interconnected. The organization structure is the pattern of relationships among various activities and position. Since this positions are held by various persons, the structure is that relationships among people in the organization. The organization structure can be viewed as an established pattern of relationship among the components of the organization. In a large and complex organization, structure is set forth initially by the design of the major components or subsystems and then by establishing relationship among these sub systems. It is the patterning of these relationships with some degree of permanency, referred company as organization structure Design of basic structure involves such issues as how the work of the organization will be divided and assigned among various positions, groups, departments and how the coordination necessary to accomplish total organizational objectives

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6.1 ORGANIZATIONCHART
BOD Chairman CEO DGM Personnel Department Time officer Junior Time officer Time keeper Security officer Junior Time officer Watch man Sr. (Ele) Manager Deputy Manager Supervisor Senior Engineer Shift Engineer Asst(Mec Manager Senior Engg Shift Engineer Workers Senior Engineer Chemist Lab attender Asst. Manager Purchase Asst. Manager Purchase Asst. Manager Store Asst. Manager Purchase Asst. Manager Sales Asst. Manager Purchase DGM Materials DGM Works DGM Finance Asst. Manager Finance

Accountants

Manager production Senior Mgr Shift Engineer

Worker

Workers

Workers

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7. NATURE AND GROWTH OF ORGANIZATION

The company is going with its ambition expansion program including the installation of TMT rolling mill. At present SCL is producing 100100 mm sq steel billet through electric arc furnace route continuous casting technology. The billets produced in the plant are converted in to construction steel item of the different specification. SCL also produces value added steel of En8, En9, En44, En45 grades according to requirements of its customers. The company has recently entered in to the market of latest quality steel called TMT bars. Major portion of the company products have been supplied to the major government departments. In order to strengthen the marketing and to boost sales, company has renovated its sale at company premises adjacent to national highway With strict code of standards SCL has over the year acquired a reputation for quality which paved the way for joint venture with steel giant SAIL (Steel Authority of India Limited). The company has signed MOU agreement with SAIL on 5th May 2008 which is the milestone in history of SCL. SAIL has invested 5crores for the installation of rolling mill which would open new opportunities for the Kerala state where the production and marketing of steel will be increased to an optimum level with the brand name of SAIL with incomparable quality. Company which commenced production on 28th Aug 1973 will complete 35 years of operation on 27th Aug 2008 7.1 VISION The vision of the company is to become a global player committed to international quality standards, efficient pricing and excellent after sales service The vision statement mean 1. To become a leading global player in the steel industry 2. International quality standard means the products and service offered by SCL will match with the quality offered by competing international firms 3. Efficient pricing will compete with the price of competing firms 4. Treat the customer in the best possible manner after the sales

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7.2 MISSION The mission of the company is: To optimize the value like customer satisfaction and creating shareholder wealth The mission statement mean 1. SCL aims to provide the best products and service for the customers 2. Shareholder wealth maximization would mean that the company would operate profitability and generate enough resources for growth. To ensure such growth the company would identify profitable opportunities and diversify its operations 7.3 GOAL 1. To achieve customer satisfaction 2. To create and maintain very good working condition for the employee 3. To increase level of efficiency and effectiveness 4. To raise optimum level of share with the help of financial institution 5. To achieve sustained growth by expanding its business 6. To obtain sufficient level of profitability 7. To attain leadership status in the market 7.4 QUALITY POLICY During refining the samples are analyzed in the laboratory and the process is controlled according to samples analysis. Steel produced in the plant is every time subjected to the stringent and uncompromising quality control test. The company being the holder of a grade A grade BSI license authorized to issue certificate conforming to BIS specification. With strict compliance to prescribed code standard SCL has over the year acquired a reputation for quality steel. Quality control department has the responsibility to control and maintain the quality of the output (billets) and to grade according to the BIS standard and reporting to the production department. The department has full-fledged metallurgical laboratory to perform this task.

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7.5 CAPACITY AND PRODUCT MIX The steel demand in Kerala is mainly for domestic construction segment in the form of roads. At present the major portion of the supply is from secondary rollers, in the form of CTD (cold twisted and deformed) bars or TMT (thermo mechanically treated) bars. TMT bars have superior strength and mechanical properties with lower carbon equivalent and substituted with conventional CDT bars. Because of this SCL planned to set up bar mill with TMT process for production of TMT bars. The planned mill shall produced TMT bars in size ranked between 8mm to 25mm diameter. The capacity of the proposed mill shall be 50000t/y based of two shifts (16 hour/day)

7.6 PLANT LOCATION AND LAYOUT OF THE MIL Several alternatives were explored for location of the planned mill. Special attention was given to the following aspects, while selecting the location. Considering the aspects it is planned to install the bar mill adjacent and in line with the existing billet yard of continuous casting shop. The input billets shall be stored in the existing billet storage bay. The charging gate of the recharging furnace shall be installed in the existing billet storage bay. The charging gate of the reheating furnace entry is provided directly from the existing billet storage bay. No intermediate handling shall be required under this arrangement. Warm charging of billets in to the reheating furnace should also be possible. The bar mill shall be installed within two new proposed bays, each bay shall be provided with an EOT crane for material handling and maintenance of equipments. The different auxiliaries shall be provided either within bays or adjusted to bay require

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8. MANAGEMENT

Steel complex limited is professionally managed by a team of experts in the steel field with adequate support from a committed board of directors. SCL has over 200 employees and an equal number is employed indirectly in connected activities. With its progressive and dynamic approach, it has a proud position among the public sector undertakings in Kerala

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9. FUNCTIONAL AREAS
SCL divided the entire organization as following departments and sub departments for its smooth functioning. This helps to follow the management principles of division of labor and chain of command. 1. Works department Production department Quality department Maintenance department 2. Materials department Purchase department Sales department Marketing department Store department 3. Personnel department 4. Finance department 9.1WORKS DEPARTEMENT Work department is concerned with the production and related activities of SCL. It is one of the important departments. This department co ordinate the functions of production, quality control, mechanical and electrical work of SCL. This work department in SCL consists of 61 employees. Work department consist of following sub department Production department Quality department Maintenance department 9.1.1PRODUCTION DEPARTMENT The entire production activities of the firm are under this department. SCL has a well established production planning and control system. This section deals with the issues of work orders, material issues from store, dispatching, loading, scheduling, production progress and planning. The main aim of production department is to produce goods at pr e established cost according to the specified quality with stipulated time schedule. Other objective is efficient and proper utilization of machinery, equipments, material, man power, and manufacturing services.

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ORGANISATION STRUCTURE OF PRODUCTION DEPARTMENT

Manager

Senior Engineer

Shift Engineer

Supervisor

Furnace Man Ladle Man Furnace Man helpers Mason Billet yard helpers Unskilled workers

Ladle Man helpers

Mason helpers

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PRODUCTION PROCESS
Raw material

Charging scrap

Melting process and quality control

Melting stage

Oxidation stage

Reduction stage

Casting

Finished product

RAW MATERIALS Iron scrap, iron ore, ferrosilicon, bauxite, coke powder, ferromanganese etc are the raw materials used for manufacturing of steel.

FURNACE
In steel complex three 10/12 tones electric arc furnace are there. Its specifications are Water cooled Refectories are rammed with running mix Lined with high magnesite bricks of cost 150Rs each Around 1180 bricks of 10 different dimensions are used for lining Graphite electrodes of 300mm dia is used as electrode Furnace can heat metal around (1200-1600) degree Celsius 21

Movements are controlled by the amplifying 80-250 volts and tilting forward 45 degree with the help of Melting by double slag process The basic SCL process divided in to three stages Scrap mixing Melting process Casting process

Scrap mixing
Different types of old steel or iron products are collected with the help of a crane and it is charged .The process of filling scrap in to furnace is called charging.

Melting process
After charging furnace is shutting with furnace roof and 60KV electricity should be consumed for melting. Electrode is used any supply of current to furnace. Average time required to melt one furnace full scrap is nearly one hour. The electric furnace is charged with scrap from the scrap box (5/25tone crane), Charging is done in two, three, or four stages with the help of charging buckets, swinging the roof out. After melting a sample taken to lab for testing the contents of metal after getting the report required minerals are added to the furnace this process is known as Blocking. After blocking required amount of lime stone is added to the furnace, the calcium carbonate react with liquid metal and absorb all the impurities and float above the metal. The slag formed by lime stone is tilted and removed. The removed slag is further used in manufacturing of cement. Then the molten metal sample is again taken to lab for making sure that the components is standard if not again blocking will be done if it is standard it will take to cone cast for making billets with the help of ladles. Ladles are that which is to transfer molten metal to cone cast, it is lined with high alumina bricks and it is pre heated to maintain the temperature constant. With the help of ladle molten metal is transferred to cone cast. During the melt down process scrap is completely melted to form liquid bath. During the refining period, necessary treatment is given to steel in order to get the desired specification; raised to the required temperature and tapped in to ladle. The ladle is then taken to casting machine and casting done with the help of continuous casting machine

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REDUCING SLAG PROCESS A reducing slag process is employed when it is desired to conserve alloying elements such as chromium. In this practice a refusing slag is formed as soon as the charge is melted where by the elements which have been oxidized to form slag

Casting process
The casting is done with the help of cone cast. The molten metal is placed at the top of the cone cast in ladle, from ladle nozzle (24mm dia) its transferred to tundish. Tundish it is the plate to collect molten steel it consist of 2 nozzle having a dia of 14mm each garnex is used to cover the inside portion of tundish. The main property of garnex is it can withstand in high temperature of days but it should be continuous if it is cooled after transferring it will become ash. From tundish it is flow to mould. The mould is full time oil passing in inside and its externally cooled, actually the mould is a curved surface of 4m radius, and the cast is full time jerking. The mould cover is copper and rest all is made of cast iron before the steel reach the on dummy bar will come near to the bottom of mould, the function of dummy bar is to pull the billet to straighter. From straighter the curved billet will be straighten. Billet will be directly cooled by water. After it comes from straighter it will cut in to desired dimensions. Then allow them to cool slowly in air SAFETY SCL takes more care on safety of employees by taking the following measures Uniforms Safety shoes Helmets Gloves Goggles Protective shield 9.1.2 QUALITY CONTROL DEPARTMENT Quality control department has a responsibility to control and maintain the quality of billets and to grade it according to BIS standards and reporting it to production department. The department has full fledged laboratory to done this task. During refining the samples are analyzed. The products of the company are every time subjected to the most stringent and uncompromising test. Being holder of a good license company is authorized to issue certificates conforming BIS specification. 23

STRUCTURE OF QUALITY CONTROL DEPARTMENT

Senior Engineer

Chemist

Lab at ender FUNCTIONS Inspect raw materials available Test the quality of scrap Checking the quality of billets Checking the quality and size of rolled items Analyze the heat Control the elements such as carbon, manganese, silicon, sulfur and phosphorous etc are also the functions of this department. The quality reports of the raw materials are sending to the deputy production manager and all other departments. In shift, chemist will analyze the sample from each heat and its chemical content is reported to the production department, so that they can add or reduce each component in order to get a high quality product. The shift chemist analyzes final billets samples and the result will be given to the production department. Each and every billet thoroughly checked by shift chemist in order to give code and color according to the quality standards laid down by BIS. Billet yard supervisor will assist him

9.1.3 MAINTANANCE DEPARTMENT The responsibility of maintenance department is to keep the entire shift always ready for action. For the smooth and effective functioning of company it is necessary to maintain the system properly. The maintenance section is having two sub sections. They are electrical and mechanical section.

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9.1.3.1 ELECRICAL SECTION The electrical maintenance is again under three sub sections. Break down maintenance Preventive maintenance Periodic checking This department consists of 26 employees Maintenance can be of three types

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9.1.3.2

ORGANIZATION STRUCTURE OF ELECTRICAL SECTION

Senior Manager

Deputy Manager

Senior Engineer

Shift Engineer

Electrician operator

Crane operator

Scrap bay section

Production bay section

Billet bay section

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MECHANICAL SECTION Same as electrical section the in time works of mechanical activities for the company are performing under another head named mechanical section. Maintenance can be of three types BREAKDOWN MAINTANANCE There is a section which undertakes the job of maintaining, repairing the parts of machinery where break down or disasters had happened. This section is helpful to maintain such problems by them temporarily and thus the production function will conduct smoothly without delays PREVENTIVE MAINTANANCE This works are going on at day time, not avoidable the problems at the time of functioning of the shop, those include ordinary works of the company shortly to save company from un foreseen problems due to electrical disorders and they are by avoidable production delay. PERIODICAL CHECKING To check the oil value of machinery, to test the IR value of finding per month, taking the breaths etc are works including in periodical checking.

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9.3.2.1. ORGANIZATION STRUCTURE OF MECHANICAL DEPARTMENT

Assistant Manager

Senior Engineer

Shift Engineer

Fabricator

Fitter

Pump house operator

Driver

Cutter

Mechanic helper

Pump house helper

Cutter helper

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9.2 MATERIALS DEPARTMENT In steel complex materials department handle the total activities of sales, purchasing, marketing and stores etc. Each of the department is handled by department heads. Materials department is the back bone of the company because the activities of the purchase and sales are done under this department without which the other activities including production. Sales, purchase, and stores department are headed by general manager. When a change is needed to the existing procedure or document like contract or agreement it shall be communicated to the top level management through a particular format of amendment. The revised procedure or document revised from the higher level shall be incorporated in the document in declaration in this department

ORGANIZATION STRUCTURE OF MATERIALS DEPARTMENT

DGM Materials

Assistant Manager Purchase

Assistant Manager Stores

Assistant Manager Sales

Staffs

Stores Assistant

Weigh bridge assistant

Scrap charge helpers

Staffs

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9.2.1 PURCHASE DEPARTMENT Item purchased broadly mean for managerial activity, which cross the boundary of single act of buying. It is a dynamic activity which including administration, accurate forecasting, effective planning, developed capacity research and development for selection of materials and resources from which those may be bought follow up to issue proper delivery and forms to enable the purchase department to carry out the standard public. This department is concerned with purchase of each and every articles of SCL. FUNCTIONS In SCL the purchase department perform the following functions; Supply the needed materials Procure quality mistrials at minimum cost Try to procure maximum materials from the manufactures itself Ensure quality of bought out material SOURCES OF SCRAP SCL purchases minor items from home country and major items are importing from foreign countries. Advertising regarding the needs of SCL assist to achieve the procurements easily. Indigenous materials are getting mainly from manufacturers and through dealers IMPORTING OF SCRAP Importing of scrap mainly on the basis of open general license (OGM) Following is the steps of import: Scrap arriving bulk in containers Arranging customs clearance, loading etc Arranging supervisions, containers are opening only after supervision Enter in ledgers-the details of arrived materials Since SCL is an ultimate user of scraps 5.5% should be paid as daily while the others have to pay it by 35% The major suppliers of the scrap are 1. Lioyets global trade-Dubai 2. A- Ahumudi Generator trade in Dubai 3. Midle east metal trading Dubai 30

Some of the raw materials purchased from other states are as follows Graphite electrode-Bangalore Ferrosilicon-Chennai Silicon Manganese-Salem Petroleum coke-Bangalore Lime stone-Salem The following factors are considered for selecting the suitable source 1. Government sources 2. Lowest price 3. Quality 4. Credit availability etc Books maintained in purchase department Following are the books maintained in purchase department Order register Intend register Bill forwarding register Lorry receipt register Material return note Category use ledger 9.2.2 SALES DEPARTMENT The sales department in SCL is concerned with marketing, selling and advertising When buying steel, buy the best Rolled from the best material, Having correct diameter, Sectional weight and Carrying ISI mark, Buy from steel complex Time will prove strength. This was advertisement of SCL found in some old news papers and magazines SCL is known as STEEL MAKERS OF THE STATE.

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CUSTOMERS The main customers are Govt. department like PWD, KSEB, water authority, housing board, KSRDB construction cooperation forest department, REC University and other relevant institution 9.2.3 STORES DEPARTMENT The store department has two sections for raw material and for general consumables. Each of this department is responsible to handle the activities of corresponding work. There is one junior manager for store and sufficient number of subordinates and staffs. The weighing machine is also maintained by this department FUNCTIONS 1. Issuing and raising the materials 2. Maintain the stock 3. Annual stock verifications 4. Check and maintain the stock of minor items 5. Stock and consumption return for every month WEIGHING MACHINE SCL is equipped with a load from weighing machine and it is under stores department One qualified operator is appointed for its operation and the machine was computerized in 2005. It has the capacity up to 40 tones. The components with weighing machine are load cell, displaying screen and computer. The normal steps for weighing of a vehicle are Weighing the empty vehicle Weighing with load Comparing with bill If deviation noticed taking care about it. Standard deviation will be omitted when scrap is arrived in containers; it will be weighted from outside since the weighing machine cant occupy the length of containers. The weighing machine is used for company purpose only and its maintenance is contracted to outside parties.

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9.3 FINANCE DEPARTMENT Financial department is vital for financial planning and decision making. At steel complex limited, balance sheet and profit and loss account provides a brief idea about the firms income and expenditure during the period of its functioning. In SCL accounts department was headed by a joint manager (accounts), who works directly under managing director. It consists of one accountant and four accounting staff The company computerized its accounting system during 1989, and then he software ZENIX was found out dated and time consuming. The company replaced the system to Tally for accounting and Java for payroll by 2002.All the sales proceeds are deposited in cash credit account of SBI Calicut and withdrawals are made from this account. Company is also having a treasury public account in district treasury Calicut. Now the company deposits at district treasury only as the limit of cash credit account had gone up to crores in SBI against the cash credit limit of 6crore. This had happened one year back to development of letter of credit opened by the company for import of raw material scrap. RESPONSIBILITIES OF FINANCIAL DEPARTMENT Since the department is directly under managing director, it helps to take decisions on the following matters All financial activities like collection payment etc Rising of income Maintaining economic stability in the company Entry of all the expenses in the account book Prepare balance sheet and profit and loss account Maintain all kinds of books of account Preparation of annual report

9.4 PERSONNEL DEPARTMENT Personnel management is an important part of management which is primarily concerned with human aspects of an organization. Its purpose is to establish good human relations at all levels of organization and to utilize human beings to achieve organizational goals

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FUNCTIONS 1. Solving the industry related problems 2. Find out the various factors effecting personal behavior 3. Counseling 4. Arrangements of motivational programs 5. Negotiation with trade union 6. Administration of attendance of employees 7. Payment of salary 8. Maintenance of discipline 9. Maintenance of various statuses like Factories Act, Industrial Dispute Act, ESI and PF etc

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ORGANIZATION STRUCTURE PERSONNEL DEPARTMENT

ORGANIZATION STRUCTURE OF PURCHASE DEPARTMENT

CEO Personnel

Time officer Junior time officer

Security officer Junior security officer

Time keeper

Watchman

TRADE UNIONS There are trade unions in the steel complex. The unions are: 35

1. Steel Mazdoor Sangam affiliated to BMS 2. Steel complex Swathanthra Thozhilali Union affiliated to STU 3. Steel Workers Sangam affiliated to INTUC 4. Union affiliated to INLC 5. Mercantile employee association affiliated to INTUC 6. Steel mill workers union affiliated to AITUC Management agree to permit two office bearers of each of the recognized union to attend conciliation conference covered by labor department and one office bearer for attending cases at industrial tribunals and labor courts in which they are parties. Union leaders who are not company employees will be allowed to represent the case of their members before management. Company will issue panes for two office bearers of each union who are employees of the company and one such office bearer can enter the company while not on duty showing the pan at the security. The facilities as per the above clause will be given only those unions who secure at least 15% support of the total employee strength of the company when amendment is made

TIME KEEPING A good time keeping system is maintained in the company. When an employee is entering to the duty they punch their attendance card in the time office and punch out while going out after duty. The time officer keeps attendance record, leave register etc and prepare the salaries and wages of employees. Time keeping offices also maintains other records like accident register, ESI, PF records etc.

RECREATION CLUB The managing committees of recreation club consist of representatives of employees and management. A reading room is available in the recreation club. Besides the club organize sports, cultural and social activities.

SHIFT TIMINGS
General shift time
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General shift time for office staff 9am to 5.00 pm with one hour lunch break. Attendance are subjected to be in the office from 8.00 am to 6.00 pm. General shift time for other employees in production, maintenance, quality control and stores will be from 8.00 am to 4.30 pm with lunch break of half hour (12pm to 12.30 pm). This include drivers in various departments

OTHER SHIFTS SHIFT:A SHIFT:B SHIFT:C NIGHT SHIFT ALLOWANCE For employees who are working from 11.00 pm to 7.00 am are eligible for night shift allowance of Rs.2.50 per night shift 7 am to 3 pm 3 pm to 11 pm 11 pm to 7 am

RECRUITMENT The recruitment method consists of direct recruitment. Separate rules have been framed for managerial staff and other employees. In the case of promotion, the vacancy is notified in the connected department in the company and promotion committees interview notice board and the applicants and suitable employees are selected for promotion in accordance with the provision of promotion rules. During the last twelve years there has not been much external recruitment. Outside the company recruitment from the panel of candidates are sponsored by employment exchange. Recently recruitment in the company has bought under the control of Public Service Commission (PSC) and the rules for the recruitment are being framed through PSC

TRAINING

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In SCL training is an important function to be done under personal department. For a worker it is compulsory to be trained for 6 months under the department in which he is working. Only after the probation, worker will be recognized as an employee. Training is given separately for different categories. The company is following the training methods of job apprenticeship and job training Besides this the company is providing the training on strict working procedure (SWP), safety against hazards, house keeping etc. These programs include seminars, workshop, guidance etc. Company is usually sending representatives to international meeting PERFORMANCE APPRAISAL Performance appraisal in respect of employees will be written in every year. The report in respect of a year ending Dec 31 will be written by Jan 31 of succeeding year failure to attain minimum mark on the basis of record in any factor will be communicated to the employee by 28 th February each year. In case of employee who fails to secure qualifying marks, their interim appraisal report will be made in respect of the half year ending June. The report should be made by July 15 and failure to obtain minimum pass mark will be communicated to the employee by July 31.

10. THE SEEDS OF A SUCCESS STORY

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10.1 MOU SIGN

Steel complex limited a Govt. of Kerala undertaking and SAIL (A Navaratna PSU under the administrative control of ministry of steel), is the largest manufacturer of steel in India and steel products, at present owns and operates 5 integrated steel plants at Bhilari, Bokoro, Rourkela, Durgapur and Burnpur had entered a Joint Venture Agreement (JV) on 10.12.08 for setting up a Rolling Mill unit at SCL Calicut. The agreement was entered in to explore the opportunities to harness their mutual potential and to work jointly for making steel complex Ltd., a modern steel plant on mutually beneficial terms. Also the warehousing facility of SAIL will be operated very shortly at SCL Calicut.

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11. SWOT ANALYSIS ON STEEL COMPLEX LIMITED

Professional mangers, while resorting to management by objectives, resort to SWOT Analysis as a tool for assessment. Such an analysis on SCL will mean a study of strength, weakness, opportunity and threat faced by SCL as on today. Let us therefore analyze SCL on today 11.1 STRENGTHS 1. Today SCL is a well organized company with executives and other employees having long years of service in this very company 2. This is the only Mini steel plant in the state of Kerala by using electric arc furnace 3. SCL made joint venture with Steel Authority India Limited 4. Employees are intelligent and are able to pick the necessary skills for running the organization in a very efficient way. They have already developed the necessary skills, and are willing to develop the same further 5. SCL has got BIS certificate for the production of Quality steel 6. Steel Complex Ltd is located in Calicut, which is fairly centrally located in Kerala to take on the demand of steel in Kerala 7. The company has efficient sales network 8. The product has acquired the trust of users 9. SCL is the only mini steel plant in Kerala with more than 35 years of experience in the production and marketing of steel 11.2 WEAKNESS 1. Unavailability of steel scrap- the major raw materials required by the plant is only about 20% in Kerala itself, may be another 10% available from Tamil Nadu is possible at reasonably economic prices. We have to depend on import of balance scrap from abroad. Scrap isnt available at right quality at right time 2. SCL located very much away from the steel belt and industrialized areas. Hence our requirements of refractories, spares and such materials have to come from far away 3. Employees are sensitive in reacting to their requirements being not squarely met by the organization or for any delay in realizing their demands.

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4. Today we have to depend solely on electricity board for power, frequent failures on the part of KSEB to supply continuous power at right voltage in adequate quantities disturbs the efficient working of the organization. 5. Unavailability of rolling mill-nowadays firm mainly depends on rolling mill from other state. That leads to huge transportation charge and all 6. Working capital shortage. Being a government company, provide its products mainly to the government departments and autonomous bodies. The PWD section makes payment to the company only when they receive letter of credit from the government for the particular work for which material are supplied. This results in shortage of working capital, production loss and consequently huge burden of interest 7. Shortage and high price of raw materials 8. More effective management of the company is needed 11.3 OPPORTUNITIES 1) Sponge iron is available in India to replace scrap 2) Fast progressing technology is available in India, to improve the efficiency of our organization. 11.4 THREATS 1. Unexpected power failure and restrictions in usage of power from KSEB side 2. Sudden curbs in import of scrap by the Government 3. Competition from mini steel plant out side Kerala 4. Financial strain on the company due to fast increasing input costs, and the necessity large stocks of raw materials 5. Unwanted interference of political sector 6. Emergence of private companies in to this industry felt to organize

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12. FINDINGS
In this industry, I proposed to conclude the study report by highlighting important findings of the study. The important findings has led to some suggestions for improving the profitability of the concern 1. As a government company SCL enjoys the leadership status in the market 2. It produces high level quality steel and negligible number of defective products 3. An agreement with SAIL helpful to attain the objective growth and expansion 4. Joint venture with SAIL is the seed of success story of SCL 5. SCL is planning to become a self sufficient unit. For that it is concentrating on production 6. Company makes arrangements to avoid over crowding in the production unit near the machine 7. SCL is paving the seeds of changes in its way. Stability in its production is production is possible now in SCL 8. Due to liberalization the company need not suffer to import the raw material necessary for production 9. The main strategy of SCL is aiming at gaining a sustainable advantage over competition through quality and reduced price 10. SCL trying to improve its position in the mind of the customers by following up and attending any complaints 11. Proper time keeping system is there in SCL 12. SCL is more strict in quality of products and quality checking can be done through modern technique of spectroscopy 13. There is proper control and coordination in the company 14. The company has facilities such as canteen, rest room etc 15. The company appointing general helpers to help different department 16. Water and power is supplied for whole day 17. There is a sales depot to sell the steel 18. The government checks the product quality 19. There are several weak spots like sales promotion measures presently undertaken by the company. It includes lack of advertisement support. That effect marketing efforts of the company negatively

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13. SUGGESTIONS AND RECOMMENTATIONS

1. Steel complex limited should continue in efforts to collect as much scrap as possible fro all indigenous sources, as well as outside sources. Constant efforts are required in this direction 2. Proper planning in getting all other raw materials, refractories and spares to maintain regular production at the top most level possible 3. Gear up the sales activities in the best possible manner-keeping the watch always whether at any time billet sale is going to prove better than sale of rolled products. Although many times we find that rolled products sale is beneficial to the company, market fluctuations at time change the position very much, making billet sale itself as beneficial. This problem can be to a certain extend neutralized by having our own rolling mills 4. Installing a generator plant to take care of at least 30-40% of our energy requirements, so that in the future years when monsoon fails, the power cuts may be squarely met 5. Employees should understand companys problems, which periodically come and cooperate to achieve the best efficiency in all operations 6. Full efforts are to be put to take up the modern technologies to improve the efficiency of operations(a)Oxygen lancing(b)Scrap pre-heating(c)Foamy slag practice(d)Water cooled panels(e)Usage of sponge iron in increasing proportions are some of the developments , which may have to be adopted one by one 7. Cost consciousness in all operations should be deeply inculcated in all the employees minds 8. With better operations and profitability it should also be possible for us to go in for sponge iron plant our self 9. As the product has achieved quality as well as cost competitiveness when compared with other competing brands, there is a scope for improvements in promotional measures for expanding the market share for its products and in this regard include the following: a) Various types of incentives must be allowable to the sellers on the order to increase the order b) Quantity and grade based differential pricing can be adopted to induce users to buy more c) Aggressive advertisement campaign using print as well as electronic media can be used to further increase the brand of the product. This will support any market penetration strategy. basis of sales revenue in

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14. CONCLUSION

In plant training at Steel Complex Limited was informative and interesting. It was given a great chance to be a part of the industry ad to understand the overall working and functioning of different departments. It is sure that Steel Complex Limited will become a dominant part in market share.

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