Aruna Alloy Steel Pvt Ltd co ,Madurai -S.ABARNA PREETHI MBA

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CHAPTER -I

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INDUSRTY PROFILE:

The Indian steel industry ,one of the core industries in india,is more than a

century old when the first integrated steel plant was established by Tata Iron and steel in

1907.India is currently the world’s fourth producer of crude steel and is expected to become

the second largest producer by 2015

Steel industry derives its demand from other important sectors like

infrastructure, aviation, engineering construction,automobile,pipes and tubes etc.thus its

intense integration with other important industries makes it a strategic sector for the

governments as well

The indian steel sector enjoy advantages of domestic availability of raw

material and cheap labour. Recent mining restrictions have put a strain on its

availability.This abundance has been providing a major cost advantages to the domestic

steel industry.

Steel plays a vital role in the development of any modern and emerging

economy.The per capita consumption of steel is generally accepted as a yardstick to

measure the level of socio-economic development and living standards of its countrymen.as

such,no developing country can afford to ignore the steel industry.

Therefore,through this conglomeration of government,policy

makers,industrial leaders and potential investors from india and abroad is to discuss new

growth drivers that are revolutionizing the indian steel industry and assess the challenges

and opportunities associated with new technologies along with identifying new growth

frontiers.

The beginning :

The modern iron and steel industry in india owes its origin to the grand

vision and perseverance of jamseti Nusserwani Tata .The tata iron and steel company

limited (Tata steel) was registered in Bombay on 26th

august 1907.The construction of the

steel plant was then taken up in earnest with the first stake being driven in February

1906.R.G.Wells,an American with steel plant construction experience took over as the

General manager in 1909.Success came when the first blast furnace was blown –in on 2nd

December 1911,and the first ingot rolled on 16th

February 1912.

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The company was originally constructed for capacity of 1,60,000 tonnes

of pig iron,1,00,000 tones of ingot steel,70,000 tones of rails,beams and shapes and 20,000

tonnes of bars,hoops and rods.The plant essentially consisted of a battery of 180 non-

recovery coke ovens and 30 by product ovens with a sulphuric acid plant,Two blast

furnaces(each of 350 tonness per day capacity) one 300 tonne hot metal mixer ,four open

hearth furnaces of 50 tonne capacity each,one steam engine driven40-inch reversing

blooming mill,one 28-inch reversing combination rail and structure mill with re-heating

furnaces,and one 16-inch and two 10-inch rolling mills.besides ,the steel works had a power

house,auxillary facilities and a well equipped laboratory. The cost of the plant as erected

came to around rs.23 million.

LIBERALISATION OF THE INDIAN STEEL SECTOR

The important policy measures, which have been taken for the growth and

development of the indian iron and steel sector are as under:

In the new industrial policy announced in july,1991,iron and steel industry among

others,was removed from the list of industries reserved for the public sector and

also exempted from the provisions of compulsory licensing under the

industries(Development and regulation) act 1951.

With effect from 24.5.92,iron and steel industry was included in the list of ‘high

priority’ industries for automatic approval for foreign equity investment upto

51%.This limit has since been increased to 100%.

Pricing and distribution of steel were deregulated from January,1992.At the same

time,it was ensured that priority continued to be accorded for meeting the

requirements of small scale industries, exporters of engineering goods and north

eastern, besides strategic sector such as defense and railways

The import duty on capital goods was reduced from 55% o 25%.Duties on raw

materials for steel production were reduced.These measures reduced the capital

costs and production costs of steel plants

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

coming up of new steel plants in different parts of the country,iron and steel

materials are freely available in the domestic market.

Levy on account of steel development fund was discontinued from April,1994 there

by providing greater flexibilty to main producers to respond to market forces.

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1. INTRODUCTION:

1.1 company profile -:

The temple city of Madurai houses a world class foundry “Aruna Alloy

Steels Pvt. Ltd.”, a versatile company which laid down its roots in the memorable year of

1961 as a small scale industry. From 1999 Aruna is forging ahead to dedicate itself

exclusively to the valve industry. Aruna has excelled itself in the faultless supply of high

performance valve castings ranging from 5 kg to 6000 kg that have a maximum pressure

rating of 5000 PSI and up to 36″ in size. Aruna is a sought after supplier of high quality

steel valve castings manufactured in Carbon Steel, Alloy Steel, Stainless Steel and Nickel

Alloy for the ‘Oil’, ‘Gas’, ‘Thermal and Hydro Power’, ‘Nuclear Power’, and ‘Chemical’

Industry .

The company is now a world class certified supplier of steel castings to

reputed valve manufacturers both in Domestic and in International Arena. The company’s

dedication and focus is reflected in our strengthening competitive position and growth.

Aruna is emerging as a customer-centric entrepreneurial company focused on sustainable

value creation for all stakeholders.

Aruna’s current production capacity is 5,000 Tonnes of steel castings per

year. Aruna has emerged as one of the effective and reliable steel casting foundry’s in the

World for the manufacture of critical alloys and castings for critical applications. It

operates 3 plants with a diverse capacity. A new machining facility also has been added

for the supply of machined castings to Valve manufacturer .

Managing director – mrs.Arunachalam since 1972 graduated from

Annamalai university in 1972.bachlor degree in mechanical engineering.he did MBA in

Madurai kamaraj university in 1988 ,DOB-31-12-1947 ,his career started aruna In 2007

3rd

generation enterprenur,master industry engineering at university of norma.MBA

FINANCE at eaasee western university Cleveland in 2001

Aruna alloy steels pvt formely known as aruna machine tools is a landmark

in the industrial scenario of Madurai.The roots of this reputed plant were laid down in

the year 1961by late AR.sevugan chettair,a first generation ins

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1.2 vision -:

Safe, Environmentally friendly and dependable World Class Steel Foundry

manufacturing machined valve castings for severe and critical application in complex

materials.

1.3 MISSION:-

Continually delight the customer with quality and on-time delivery for forging

long term sustainable win-win partnerships

Continuously improvise effectiveness of management to strengthen the system and

focus people on data driven decision analysis and problem solving

Continuously invest and develop people with core skills to improve competency

and organizational involvement

Enhance capabilities and invest in new technology to improve productivity and

supply finished products for severe and critical applications

1.4 objectives:

To know customer focused result in high customer retention

To know Marketing focus to keep the changing trends and the need of the

customers

To know A professional approach that translate knowledge and data into

implements as per market needs

Quality

Proven track record to meet global quality standards

Demonstrated capability with production of Valve Casting for Nuclear Power

Applications

Well integrated efficient quality systems to monitor quality assurance of products

Solidification simulation to analyze integrity of casting and reduce defects

Strong & Integrated Documentation control Service

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Sustainable process to support the development of over 20 new castings per month

Customer focused planning & execution for reliable delivery

Competitive Lead Times

Product range :

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

Diverse product portfolio and high Alloy casting capability

Exotic and special materials manufacturing Organization

Experienced management team dedicated to deliver sustained value creation

Continuous improvement to develop world class manufacturing

Logistics:

International airport with well connected passenger flights

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

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1.5 ORGANIZATION STRUCTURE :

Managing director

Human resource

Assistant manager

Executives

purchase production

manger

Quality control

Finance

Manager

Assistant Manager

Marketing

senior Manager

Area sales Manager

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1.6 COMPANY ACHIEVEMENTS

Aruna developed agitator casting in CF8 material level-2 in

radiography for Indian satellite instant by ISRO

Supplied casting for cryogenic value casting

Customer approved for international engineering procurement

Value casting

1.7 AWARDS

EEPC award in 1998-1989 ,1991-92 railway rolling stock best

exporter.

Best foundary PG s Award in the southern region for the year 2001-

2002.

Highest productivity in foundry DR.velappan award for the year

2002-2003

4 natinal award to have been awarded to the managing director

Mr.s.v arunachalam best foundry man of the country in the year

2003 by Indian institute of foundary men.

Export excellance award for the yr 2007 by IIFM,EEPC,SILVER

MEDAL regional export excellance award for the year 2006-2007

Latest news :

ARUNA has the best of breed people,process and technology and has

invested heavily on R&D

Safe,environmentally friendly and dependable world class steel foundry

manufacturing machined

Aruna has best R&D infrastructure

Aruna alloys have launched their revamped site in aruna alloy steels pvt

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1.8 GOVERNANCE :

The Director ,The manager and The supervisor all have responsibilities in the work

place .directors are responsibile to the business,customers,employees,suppliers and

shareholders.

Directors :

The directors create the plans. Directors work sincere they have generalist

experience,or sometimes more importantly good contacts

Managing director :

The managing director is the head of the organization and controlling the

organization .Their work is often described as “getting things done with or through

people”

Senior manager:

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

make detailed skilled judgment .

Middle manager:

Middle manager organize and control the resources of an organization within

guidelines

Junior manager:

Junior manager is usually concerned with the short term supervisory activities

making sure that order get out on time and resources .

Supervisors :

Supervisor are also woking sincerely in this organization they are people who

know how things should be at ground level . All must wear ID cards compulsorily

shoes and uniform neat and clean ,supervisor want to check all of these

All must wear helmet then only they allow bike inside an organization otherwise

parking is outside the organization.

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1.9 ADMINISTRATION, DUTIES AND RESPONSIBILITIES:

The role of administration department within an organization is to process all of the

admin and documents for the rest of the company. There are many different departments

that need to have different things done with their admin. The main functions of an admin

department of an organization are:

To process paperwork for external suppliers.

To process paperwork and information for internal people. This could be anything

from looking after the basic bills to the internal post.

Looking after the internal communications so that all members of the organization

are aware of what is going on within the organization.

Organizing any deliveries or suppliers coming into the offices for the day for any

reason.

Arranging company extras such as company cars and any hotels for business trips

that may be needed.

Sending out any mail on behalf of the company. This could be for different

stakeholders, customers or even for staff.

The admin department will be responsible for ensuring that all records that pass through

the department are filed correctly and can be found and referred to if and when they ever

become necessary.

These will be records of purchases and expenses from different parts of the company and

their approval from the finance department. There will also be different confidential

information about employees that are owned by the Human Resources department. These

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too will be stored and used by the admin department. This is an important department for

any company and they work across all departments and with all kinds of work

1.10 LIST OF PRODUCTS

Value Type Component

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

GLOBE Body, Bonnet, Funnel

CHECK Body, Disc, Hinge, Hinge Holder

PLUG Body, Plug, Cover

CONTROL Body, Bonnet

BUTTERFLY Body, Disc

ANGLE Body

BALL Body, Adaptor, Connector, Ball, Trunion

Y-GLOBE Body

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1.11 ORGANIZATION STRUCTURE

MANAGING DIRECTOR

DIRECTOR

HR

FINANCE

PLANNING AND MARKETING

METHODS AND DEVELOPMENT

PATTERN SHOP

MOULDING ,MELTING

QUALITY

FETTING

DISPATCH

Managing Director

Director

Human Resource Manager

Finance

Planning and Marketing

Methods and development

Pattern shop

Moulding and Melting

Quality

Fetting

Dispatch

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Departments

CHAPTER 2

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Departments

HR

PURCHASE

PRODUCTION FINANCE

Markeing

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2. HUMAN RESOURCE DEPARTMENT

2.1 HUMAN RESOURCE OBJECTIVES:

To known about HR work selection process, recruitment,training

attendance,leave& permission etc

Implementing a human resources strategy

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

i. Risk management

ii. Recruitment

iii. Retention

2.2 REGULAR ACTIVITIES

The management deals with control of men,money,material and machines.

company is taking much interest on maintaining relation with labor force. The main

responsibility of this department is

To provide welfare measures

To recruit employees.

To train and place them in job

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

Seiri-sort out and eliminate un necessary things

Seiton-systematic arrangement of the things

Seiso-clean the place and machine well

Seiketsu-maintain atmosphere

Shikkari- not to give up system at any situation

Sahou- doing everything in a good manner

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2.3 DEPARTMENT STRUCTURE:

Deputy General Manager

Assistant Human Resource Manager

Executive Officer Assistant

Personal Officer

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The subject mattern of this department concern with

Recruitment,selection,orientation,attendance, leave and permission,wages,performance

appraisal,training and development,gratuity,pension scheme,factory act employee

provident fund,safety and welfare activities ,councelling and motivation.

Selection :

Selection Is based on resume .After selection, interview is conducted attend

and based on their skills candidates are selected according to their knowledge based on

the resume checking work, human Resource manager must select the candidates.

Orientation:

New employee and an introduction of The company terms and

condition,rules,procedure,policy arrangement,safety,health and security are they spend

each day in each department after orientation The candidates are ask to submit a report

then the department Faculties must provide feedback.

Attendance:

Human Resource department maintain attendance register and submit register in head

office every end of the month.even for training student attendance maintaining in

company

Salary is calculated based on attendance all the employee must wear id card when they

enter and leave no one can enter the company without sigining the register.

Leave and permission :

25 days leave – casual leave-10days

Privilege -8days

Remaining-7days

Employee – 8hours permission in a year

Sick leave – more than 2days means medical letter want to submit .if

employee take more than salary deducted

9days holiday provided to to national leave

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Wages :

In Aruna alloy steel pvt ltd co confirm staff based on the no of days

working,they provide wages to the employee .over time wages are provided . labour once

in a week.

ESI are deducted from employee wages

Performance appraisal :

Appraisal are conducted once in a year like

increment,promotion,transfer is given based on performance appraisal .

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

operative,commitment,attendance,dicipiline,healthcondition,cleanliness,adjustment

,multi skills,equipment handling,emergency management,reparing knowledge

,trouble shooting ,cost conscious ,decision making,time management and stress

management.

Training and development :

Training –oreientation training ISO,safety,department related value stream,

house keeping, inventory ,repair and maintaince,supervisor skill development

management information system and quality control.

Employee – 125

Manager -5

Staff-40

No of worker – 60

No of temporary worker-20

Training – 3month training on the job ;Monetary and non monetary

benefit satisfied by personal department .All the employee having good relationship

between management and employee.

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Behavioural training :

On identification of the employee behavioural needs they will be given

appropriate training,the training may be in house by HR personal or through outsourced

professional as per need.

Workers :

Apprentice is one who learn a skilled trade without getting any salary .They work

in industry to learn and get a real life experience.

Age limit – minimum 18years

Maximum 58years

Wage period :

Calendar month basis unskilled,semi skilled, skilled,higher skilled,employee

salary average only 6000 rupee

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

basic wages

Over time not more than 50 hours

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

Special incentive :

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

Bonus and incentives:

Bonus and incentives very useful tools to motivate and reward employees when

they do their job well. The right incentives ensure employees maintain high level,

employee them to stay loyal to the company

To determine what a company seeks to address and what its seek to attain.there is

a slight difference between bonus and incentives’ bonus is generally monetary in nature

while an incentives can either be monetary or non monetary.

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In determining correct bonus and incentives scheme its is important that with the

goals and objectives of the organization. A company has to take into account the nature

of business,the area operates in the competition its faces and core strength.

Leave policy :

5days casual leave attend personal and urgent requirement. Employee will given

10days for festival and government holiday, leave date put on the notice board and

communicated to the employee.

Working environment :

Proper lighting and ventilation in working area.

Tea break,lunch break are provided in the company itself

Rest room

Uniform and shoes

Education allowance is given to the worker children

Pick up and drop up facility are also available

No pollution area neat and clean

Drinking facility are provided

Canteen facility

Recruitment :

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

the hr manager

The other labours education as not upgraded as 10th

pass is basic

2 .4 Promotion policies :

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

employees.uniform distribution of promotion opportunities through out the

company.equal opportunity for promotion should be provided to all catergories of job in

all the department

2.Suitable training and development opportunities should be provided so that employee

can prepare themselves for advancement

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

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4.Policy should be fair and impartial

5.A suitable system of follow-up, counseling and review should be established. All

promotions should be on a trial basis and the progress of the promoted employee should

be monitored to ensure that all is going on well. Counseling and guidance should be

provided to the employees rejected for promotion.

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

promotion. The final authority to sanction a promotion should rest with the concerned

line executive. The human resource department should only suggest the names along with

their records

2. 5 TERMINATION, TRANSFER AND RETIREMENT POLICY:

Termination:

1. Workers: When they want to resign from the job, they can immediately

terminate their wok by giving termination letter to the HR department.

2. Employees: When employees want to terminate the job, they want to give

termination letter to the HR department before 15 days itself.

Transfer:

Transfer will be done once in a year and assign new job for workers. Multiple

training will be given to the workers for to substain in the growth of the organization. It is

simply said to be as job rotation.

Retirement:

After the completion of 58 years of age, retirement will be given to the employee

in the organization

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2.6 GRIEVANCES HANDLING PROCEDURES:

Informal stage

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

First stage

A member of staff who believes they have a grievance arising from their employment

should raise the matter in writing with their supervisor, indicating that they seek recourse

to the grievance procedures. If the supervisor is involved in the grievance then the next

level of management should be approached.

The supervisor should arrange a formal meeting, normally within 7 days, in order to

consider the grievance. After due consideration the supervisor should then give their

response in writing within a further 7 days and advise the member of staff of their right to

have their grievance heard at the next stage of the procedure.

Second stage

If the matter is not resolved the staff member may refer the matter in writing to their head

of department, having notified their supervisor. If the head of department is involved in

the grievance then the Department of HR should be consulted for advice.

The head of department [or nominee] should arrange a formal meeting normally within

14 days in order to consider the grievance. After due consideration the head of

department should then give their response in writing within a further 14 days and advise

the member of staff of their right to have their grievance heard at the next stage of the

procedure.

Third stage

If the matter is not resolved the staff member may refer the matter in writing to the

Director of Human Resource Management, having notified their head of department.

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The Director of Human Resource Management [or nominee] should arrange a formal

meeting, normally within 14 days, in order to consider the grievance. After due

consideration the decision of the Director of Human Resource Management [or nominee

will be given in writing within a further 14 days and the member of staff will be advised

of their right to have their grievance heard at the next stage of the procedure.

Final stage

If the matter is still not resolved, the staff member may ask the Registrar & Secretary to

convene a Grievance Panel. The Grievance Panel will normally be composed of a Pro-

Vice-Chancellor, as chair, a senior member of staff, and a member of staff nominated by

the relevant trade union

none of whom have prior involvement in the case. In the case of a staff member who is

not a member of a trade union then a member of the University Human Resource

Management Committee will be nominated by the Director of Human Resource

Management [or nominee]. The Director of Human Resource

Management [or nominee] and the grievant will be required to agree the composition of

the Grievance Panel.

The Department of HR should arrange a formal meeting, normally within 21 days, in

order to consider the grievance. After due consideration the decision of the Grievance

Panel will be given in writing within a further 14 days. The decision of the Grievance

Panel will be final.

The Department of HR will service the Grievance Panel, including recording a summary

of the findings.

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3.PURCHASE DEPARTMENT :

3.1 PURCHASE ORDER :

A- process of material purchase order

B-process of AMC order

C-process of calibration order

D-process of pattern order

E-process of service order

F-machine order

MATERIAL PURCHASE ORDER PROCESS :

Indents received after approval of all level

Selection of supplier based on capability and availability this is a separate process

but it is done during the time.

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

urgency

If existing price is maintained it will be routed through direct purchase order if

yes price is changed,it will be routed through no

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If yes

if no

Direct raise purchase order

enquiry letter

Quotation received by over

phone,mail,fax.

Quotation entry

Comparatively chart

Purchase order

Purchase order verification and

approval

3.2 signing of order:

All orders are approved by either asst manager and DGM materials

After approval,print out is taken and signed by the person who prepared the order

and asst manager and DGM material (all orders)

Below rs.50,000 approved by DGM material

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

All the raw material,alloys,welding rods and capital order are sent to ED for

secong signature.

3.3 process of service order:

Service indent,material will be sent to the service provider with the gate pass,

enquiry letter,quotation received,negotiation service order

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

machine order

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3.4 FILLING OF ORDER :

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

3.5 PURCHASING PROCEDURE :

The purchasing process for companies breaks down into eight clear steps. In the

first step the company identifies a need, for which the answer is the purchase of a

product. The final step is the execution of a purchase contract. The steps in between build

an organized, informed process that results in the company purchasing the right product

for the need from a qualified supplier whose product is the most durable for the price.

Identify Need

Identify the need for a product purchase. For example, a lawn company wants to offer

mowing services to its clients. To do this it needs to purchase a mower. Thus, the need to

make a purchase of a product, a mower, is identified.

Select Specific Product

Select a specific product to meet the need. For example the lawn company must select

which type of mower from the many push and riding varieties on the market meets the

companies need for a mower the best.

Appoint Purchase Team

Put a team together to manage the purchase process, including finalizing the list of

required technical specifications for the product and the bid solicitation and award

process.

Specify Technical Specifications

Arrive at a list of required technical specifications for the product to ensure it meets the

companies’ needs.

Budget for Purchase

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Establish a budget for the purchase relying on the range of prices identified by the

research done in Step 3.

Research Potential Suppliers

Research the various product types that fit the need along with their suppliers to identify

the most durable model at the best price. If the lawn company decides to purchase a

riding mower, research is conducted into which brand and manufacturer provides the

most durable product for the price asked.

Solicit Bids

Solicit bids from the manufacturers and suppliers of the identified product that meets all

the required technical specifications.

Award Contract

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

3.6 Inventory Management:

In stores department the spare parts for machineries are purchased. Usually spare

parts of the heavy machines are purchased from the industry where they purchased the

machines. The spare parts that are required to the machineries come to the notice if the

storekeepers through the supervisor or maintenance officer. In the note of the storekeeper,

required spare parts have been signed by assistant manager and spinning master and this

form is known as purchase indent.

In case the department does not contain the required parts, then they will make

arrangements to purchase those materials and this procedure is said to be purchase

requirement. After receiving the letter of requisition from the parties, the storekeeper

writes a letter to the parties. Usually they have good knowledge about machinery. Thus it

helps them to purchase goods and fine spare parts along with long period of guarantee.

Then they receive quotation from the parties

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The storekeeper prepares comparative statement to analyze the price for each type

of materials, the stamen also includes party name, taxes, mode of payment whether it is

paid directly or through bank, delivery period and the particulars about the terms and

conditions. Later it has signed by the storekeeper and assistant manager, the statement is

sent to the managing director for the selection of the vendor.

The managing director has to select the party analyzing the comparative statement;

he has to finalize order regarding the required materials. They may request to reduce the

price of the materials. They receive the materials with in the specified period mentioned.

The payment is made according to the supplier wishes.

The seller having the original sales form and give the duplicate to the carriers. The

bill is sent to the buyer, and then the storekeeper should file all the bills and receipt, so

that it will be earlier to pay the amount. As they receive the material it is issued only in

FIFO method. They also maintained bin card for each and every material.

In the inventory management they are maintaining the minimum stock

level,maximum stock level and re order level.The store keeper are arranging the goods

easily manner in order to retrieve stock quickly and maintaining the clean environment

against fumes and dust.

3.7 MATERIAL PLANNING :

The material planning stage after the project has been awarded to SSD (through the

Material Planning and Control Group)

The Department is responsible for the planning and management of the supply chain

process with regards to both raw materials and fasteners, in addition to other special

buyouts. This is done through the Material Planning and Control Group and includes the

following major activities:

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The close involvement and coordination with the Purchasing Department with

regards to the sourcing process and the selection of optimum suppliers whose

delivery dates satisfy the project’s requirements.

Uses Oracle ERP (Enterprise Resource Planning) applications for the planning,

ordering, tracking, receiving, and issuance of materials.

The thorough tracking of ordered materials for each phase of each project, which in turn

is reflected through a weekly released tracking report until the materials are fully

received at our shop. This report serves as a powerful tool for the fabrication planning as

well as for the phase wise tracking of the material across different projects.

The Engineering department of Structural Steel Division consists of two major

Engineering Offices located in Saudi Arabia and Jordan. The Engineering services

combine the excellence of technology with sound Engineering skills to result in greater

quality steel design and detailing services, management and delivery. Our systems and

software’s are capable and flexible to handle various requirements of our clients. We

have a team specialized in Engineering Software and their proficiency helps our clients to

achieve the most economical and structural efficient engineering solutions

The most suited infrastructure required for a 100 percent CAD environment.

Automation has been implemented to achieve accuracy and efficiency in designing

& detailing complex structures like Industrial buildings, pipe racks, Equipment

structures, high-rise buildings, ware houses etc.

In house developed connection design tools (as per ASD & LRFD) for various

codes are used to increase the efficiency and accuracy to produce connection

design for various types of complex structures. Design software STAAD PRO is

used by highly qualified Structural Engineers for structure design.

State of the art 3D modeling software Tekla structure (formerly XSteel) is being

used for steel detailing and all drawings are computer generated. Latest versions of

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CAD Packages like AutoCAD and Micro Station are also used to provide accurate

and high quality drawings to meet customer requirement.

In house design link to Tekla structure being developed to ensure automatic

connection design data transfer to Tekla 3D model to make uniform, efficient and

error free connection.

CNC Team dedicated to verify & prepare CNC programs and improve the link of

CAD to CNC equipments at the fabrication shop to accelerate the production

activities by providing error free CNC data.

Fast communication achieved through electronic file transfer by E-mail or FTP

(File Transfer Protocol) using internet.

The Engineering department is capable of handling all types of structures in the

areas of structural design, connection design, erection & shop drawings

preparation including Bill of Materials. The department has a high capacity to

produce shop drawings and associated documents by the effective use of computer

software’s and qualified Experienced Engineers.

The Engineering Department achieves project requirements of delivery by

planning work activities, reviewing and coordinating between design, detailing

and other internal departments.

The Engineering department uses a piece mark code system which consists of the

item number and material finish, code for easy reference during fabrication and

erection and cross-checking of the details of the individual piece.

The Engineering department produces computerized field bolt list which gives full

details for erection such as quantity, type and finish of the bolt assembly

associated with each piece mark and connecting assemblies to identify the correct

bolt assembly for erection. In addition, a separate list for erection reference is

generated for loose part such as clip angles, splice plates... etc associated with

main members.

The Engineering department produces the Piece Mark Tracking Report (PMTR) to

track and monitor the progress and status of each piece in the whole project.

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PMTR also presents status of the different stages of production for each project

including: Engineering completion, Production order, Preparation, Material fitting,

Welding, Shot blasting, Painting, Q.C. inspection and shipping completion.

PMTR presents the following information:

o Shop Drawings numbers

o Shop Drawings numbers

o Piece mark of each member

o Quantity

o Member description

o Unit and total weight

o Unit and total surface area

In addition to the above, PMTR also presents the different stages of production for each

job like: engineering completion, production order, material cutting, material fitting,

welding, shot blasting, painting, Q.C. inspection and shipping completion.

4.PRODUCTION DEPARTMENT:

4.1 INTEGRATION WITH OTHER DEPARTMENTS:

Production department is mainly concern with finance department only. From

purchasing of raw material to packing process, the capital will be needed for running the

business. For effective utilization of resource, scheduling must be carried out in the

process. By scheduling wastage of the steel will reduce and to achieve the 0% wastage

reduction. Next production department mainly concern with HR department, it will

observe the performance of the employees who are

working on the company. This department will increase productivity of the company.

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4.2 DEPARTMENT STRUCTURE:

Pattern shop

Moulding

Melting

Heat Treatment

knock out

Decoring

cutting

Inspection

quality control

Dispatch

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4.3PRODUCTION PROCESS

Design & Development:

The Design lab at Aruna Alloys boasts of the best in breed people, process and

technology to ensure minimal error and rework. The product development and design

department drafts and designs using CAD/CAM before development. Equipped with

Magma for solidification analysis, all simulations adjustments and allowances are made

at design unit.

Melting & Moulding Facilities:

All the 3 plants operate on Medium Frequency Induction Melting Furnaces. Furnaces

ranging from 250 kg, 1 MT, 2MT and 6MT have been installed across the 3 production

facilities. Aruna has strategically positioned the 3 units to cater the wide range of casting

weights for the body and components of valve manufacturers to provide a one-stop shop

for sourcing. As rate of pouring and furnace temperature loss after tapping of metal are

critical to maintain quality, a wide array of furnaces are operated. Depending on the

liquid metal requirement, the plant for pouring is chosen by the product development

team. Currently, we can pour a 6 Ton casting by running the 6MT furnace Dual Track to

tap 12 MT of liquid metal.

The moulding process across the 3 plants is hand moulding Co2-Silicate process. Airset

cores are taken on special cases depending on criticality of the casting. Intensive process

control is being put in place to ensure consistency in the manufacturing process.

Bottom Pouring:

All medium & large size castings weighing from 250 Kgs upto 6500 Kgs are poured

using Bottom Pouring Ladles. There are 15 Ladles in all the 3 units ranging from 250

Kgs to 12,000 Kgs Liquid metal Capacity. The adequate capacity and flexibility in

transporting Liquid metal to the mold helps in planning to tap only sufficient quantity of

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metal required for pouring. As pouring weight varies based on casting size and pressure

class, a consistent rate of pouring is maintained by using the appropriate Ladle to

manufacture a clean casting. To pour Duplex and Gaseous type of materials, Argon

Purging facilities in the Ladle are provided to inject Argon Gas into the bottom of ladle.

The bottom pour ladles enhance the metal quality, improves the head pressure, and

provides a consistent flow rate with minimal air entrapment due to operator variation.

Small Castings ranging from 5 Kg - 250 Kg in weight are poured using Tea Spout Ladle

to reduce the rate of pouring to avoid erosion of the mould

Test Lab:

The testing units in aruna has the following departments, Physical Testing (including

Universal Testing Machine, Hardness Testing , Impact Testing Machine, Metallurgical

Microscope with Photographic Attachment), Chemical Testing (Optical Emission

Spectrometer: capable of checking 30 elements), Wet Analysis, Radiographic testing etc.

Sand test lab:

Sand is the basic ingredient that helps build the casting quality by reducing inclusions and

gas entrapment during metal pouring and solidification. Effective controls with a strong

sand testing lab have been setup in every foundry facility to test incoming sand and

process sand. Incoming sand is tested for AFS, Clay Content and Loss of Ignition (LOI),

and only accepted material is used for production. In process sand, Permeability,

Moisture and Compression Strength are tested for every batch to ensure consistency in

mould making.

Wet lab:

The incoming material such as alloys and scraps with irregular metal surfaces are

checked for its chemical composition by wet analysis

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Spectro unit:

Optical Emission Spectrometer . This equipment can check 30 elements including

Nitrogen, Oxygen and Boron in four bases namely Iron Nickel, Cobalt and Copper.

Final Inspection:

The prepared castings are checked for visual, dimensional and invisible defects. Magnetic

particle and dye penetrant tests are also conducted at this station. Weld repairs are carried

out for discovered defects

Dimension Inspection:

All sample castings and random bulk production castings are inspected for dimension

consistency. Wall thickness report is provided to the customer as required for bulk

production castings. Dimensional variations are immediately updated to the patternshop

and process control to make necessary corrective actions. Dimensional inspection area

plays an integral part of casting development for maintaining accuracy in the product

supplied to minimize rework during machining. In order to support the technical

development team, young engineering graduates coordinate the functions in this area.

Magnetic Particle Testing:

Magnetic Particle Testing is 100% performed on Carbon Steel Castings and Low Alloy

Steel Castings to identify cracks, surface discontinuities and sand entrapment in the

surface. Dry, Wet and Fluorescent Method are practiced at Aruna. Magnetic Particle

Testing is done as per customer specification in accessible Areas. If no special mention is

given in the Customer Spec, then Dry method is practiced. Both Yoke and Prod method

are available for testing

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Pickling & Passivation Facilities:

For all Stainless Steel and Duplex Steel Castings Pickling and Passivation is done to

clean the impurities in the surface. Every unit is setup with own material handling

facilities and buzzer systems to control the pickling and passivation of castings. Material

Handling facilities are provided for each tank to hold the casting during the cleaning

process.

Penetrant Testing:

Penetrant Testing is 100% performed on Stainless Steel, Duplex, Super Duplex and

Nickel Alloy castings. As these materials are non-magnetic, Penetrant Testing is done to

identify Cracks and surface defects. Water Washable and Solvent Removable methods

are practiced at Aruna in all the 3 facilities. Penetrant Testing is done as per customer

specification in accesible areas. As a standard, Water Washable Technique is practiced in

Aruna. Solvent Removable is done if requested in the Customer's inspection

requirements.

Heat Treatment & Fettling:

1. Heat Treatment

Sufficient capacity in Heat Treatment process has been invested to handle the various

customer requirements. A total of 9 Heat Treatment Furnaces in all the 3 Units have been

setup. All the Furnaces are calibrated by 3rd Party according to procedure API 6A

(Appendix H). 5 Electric Furnaces ranging from 1 MT to 3 MT capacity and 4 Oil Fired

Furnaces ranging from 3 MT to 20 MT have been installed. The Furnaces have been

designed to reach high temperatures of up to 1250 Degree Centigrade required for the

High Alloy Steel and Nickel Alloy Steel Grades. 2 Electric Furnaces with Automatic

Quenching facilities have been also installed to maintain process consistency.

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2. Shot Blasting Machine

Seven Hook-Hanger type shot blasting machines have been installed at the 1st Stage

Fettling and Final Finishing Fettling areas of each plant. Shot blasting capacity ranging

from 500 Kg to 12 MT have been installed to suit each plant's surface quality

requirements. With the diverse range in capacity focused on the casting weight and size

at each plant, Aruna has been able to satisfy customers with excellent surface finish

quality.

3. Grinding & Welding

Electrically operated high speed grinders are used for final finishing of the castings.

Welders are qualified for each grade as per ASME Section IX and EN Standards to

support the up gradation of castings. Careful material handling of welding electrodes is

done to ensure quality of welding.

Despatch & Packing:

Finished products are sorted, tagged, packed and loaded for transportation in this area.

For export customers, un-machined castings are packed into Wooden Crates or Wooden

Boxes depending on the customer's

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4.4 SAFETY INSTUCTION TO WELDERS :

o Welding shield helmet

o Safety protection gloves

o Safety protection googls

o Safety mask

o Ear plug

o Leg guard.

4.5 RESEARCH AND DEVELOPMENT:

Identify and develop new businesses through conducting market research, demand

forecasts and customer surveys for new businesses/products (up/down stream integration)

in line with vision and long term strategies of ZIIC. Provide necessary information for

preparing full fledge economic feasibility studies.

Enhance the current business by:

Facilitate technology up gradation by identifying industry bench marks in

manufacturing efficiencies and mapping practices against the bench mark.

Identifying the gaps and prioritize areas of immediate improvement. Process re-

engineering is used to align Industry practices with industry best performances.

Improve current process by identifying process capabilities and aligning support

systems to match the process capabilities.

Closely coordinating with the Industrial Engineering Department to ensure the

following are successfully and continuously conducted and implemented:

Facilitate Methods improvement studies: Assist in identifying better methods through

critical analysis & brainstorming for all the critical operations/processes with an overall

objective of improving the productivity of all the resources.

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4.6 PRODUCT LINE

Aruna has adequate infrastructure and technical capability to manufacture

value and engineering casting in critical material A grade.value casting include bonnets

and wedges for

Gate value

Global value

Check value

Plug value

Ball value

Butterfly value

Control value

FACTS

o Eyes examination conducted for all quality control personal

o Level production plan

o All employees are covered under various social security scheme.

o Clear inspection for inprocess and final inspection

o Measuring and monitoring equipment are calibrated periodically to ensure

the accuracy

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5.FINANCE DEPARTMENT :

5.1 OBJECTIVES:

o To know about finance department

o To know about current analysis

o To keep the record on time

o To analysis profit

5.2 DEPARTMENT

a. Bank payment department

b. Export - Cash in flow department

c. Payable- outflow

d. Payable department

e. Import

f. Bill of lading

g. Sales tax department

h. Accounts finalization department

5.3 REGULAR ACTIVITIES:

The following are the regular activities carried out by the financial department in

the company:

It is responsible for preparation of cash flow and monitoring the inflow and

outflow of cash.

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

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

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5.4 FINANCE DEPARTMENT STRUCTURE

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5.5 FINANCE DEPARTMENT

In company, accounting systems include computers, highly trained

personnel, and accounting reports that affect the daily operations of every department.

But in every case, the basic purpose of the accounting system remains the same: to meet

the organization’s needs for information as efficiently as possible.

An accounting system consists of the personnel, procedures, technology,

and records used by an organization (1) to develop accounting information and (2) to

communicate this information to decision makers. The design and capabilities of these

systems vary greatly from one organization to another.

Many factors affect the structure of the accounting system within a particular

organization. Among the most important are (1) the company’s needs for accounting

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

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

Anticipation of fund (i.e. capitalization)

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

Allocation of fund (i.e. investment decision)

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

5.6 INTEGRATION WITH OTHER DEPARTMENT:

After the manufacturing of the product it will market or send to the consumer. So

it mainly depends on the production and marketing department. If any material purchase

for the production, the store keeper must file bills periodically. After the contract is over,

all financial transaction must be entered genuine in the transaction book. So it will lead to

profit of the company. Company objectives will be achieved through this department

only.

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5.7 CASH MANAGEMENT SYSTEM:

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

collect receivables and manage liquidity. Managing the channels of collections, payments

and accounting information efficiently becomes imperative with growth in business

transaction volumes. This includes enabling greater connectivity to internal corporate

systems, expanding the scope of cash management services to include “full-cycle”

processes (i.e., from purchase order to reconciliation) via ecommerce, or cash

management services targeted at the needs of specific customer segments. Cost

optimization and value-add services are customer demands that necessitate the creation of

a mechanism to service the various customer groups.

Banks are increasingly becoming innovative and anticipating the needs of

corporate towards standardization, ERP integration, reconciliation, real-time reporting,

providing an end-to-end view of cash management value chain besides offering the

ability to reach and be reached by their own customers. The mounting pressure from

competitors forces the Banks to look for an Information Technology vendor who can

offer better solutions and services in Cash Management.

5.8 CREDIT MANAGEMENT SYSTEM:

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

effective decisions at every stage of the credit lifecycle - new business, customer

management and debt collection. Credit management is the process for controlling and

collecting payments from customers. A good credit management system will help to

reduce the amount of capital tied up with debtors and minimize company exposure to bad

debts. Good credit management is vital to company cash flow.

.

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6.MARKETING DEPARTMENT :

In marketing department activity like market research,latest market trends and

technology for its product ,exploring new market ,planning and implementing a

marketing strategy,developing creative advertisement campaign and promotional

literatures, selecting through various appropriate media ,public relation activities and

organizing exhibitions ,seminars etc,ensuring to accomplish the company vision and

mission goals

6.1 DISTRIBUTION STRATEGY:

These consumers can be classified into three major groups they are

1)Government

2)Retailer

3) Private sector consumers

To cater to the needs of all its consumers, the company does both (B to B selling) and

retail outlets (B to C selling). Bulk orders come under direct selling and small order from

retail outlets.

Aruna steel has selected 28 distributors in different location across India. Every

distributor is given 2 days training session, after which they become confident about the

product and learn how to differentiate its product from its competitor product. Aggressive

distribution strategy needs to be adopted for covering large rural area. Distributors keep

active sales force to cover all the retailers in their geographical area.

Within the Distribution category, the business is categorized as OE or Retail, based on

whether the customer is serviced directly, or through the Retail / Distribution network. In

OE, there are sub-segments like OEM distribution, and in Retail sub-segments like

GC/GP retail distribution, CR retail distribution, and geographic segmentation.

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In OEM distribution, the customers specify the grade of steel that they require and the

company takes responsibility to supply them the same grade of steel in the agreed cut to

size condition. In retail distribution, companies maintain stocks of material for feeding its

retail chain and provide Value for money products.

6.2 SALES FORCE MANAGEMENT:

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

Management that translates the marketing plan into marketing performance. That is why

sales force management is sometimes described as the muscle behind the marketing

management. Actually sales force management does much more than serving as the

muscle behind marketing management. Sales managers in modern organization are

required to be customer-oriented and profit-directed and perform several tasks besides

setting and achieving personal selling goals of the firm

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7.SWOT ANALYSIS :

STRENGTH:

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

and application

Comprehensive range of product

Excellencent company

Commitment to technical

WEAKNESS :

No scheme for end user

Higher cost as a result of excise duty and other tax

OPPOURTUNITIES:

Significant growth in demand in both agricultural and domestic sector

Increasing important of industry sector

Increasing demand for high quality

THREATS :

Growing competition

No entry barriers

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

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CHAPTER 3

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OBSERVATION :

Observation in Human resource Department

Every employee must have state bank account and compulsory.

Every month 3rd

week Wednesday review to RR

Punctuality is maintained strictly

2time warning ,3rd

time notice,more than dismiss

In the worker side only they are recruiting women workers, but in the

administration they are not selecting women employees. The following are

the reasons told by the company,

Lack of attendance.

Decrease in efficiency.

If medical leave means want to go with medical fitness certificate…

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

productivity and there is the better co-ordination in the company with the

various department.

Real time training must be given to the employees to increase the

productivity of the company ,in purchase department all working sincerely

and hardworking persons.

In the production department the company implementing the Kaizen 7s technique.

The productivity depends only on the man power. Company is working to achieve

their mission. They are using inventory management system for storing the goods

such as raw materials of cotton, spare parts for the machines. They are arranging

the inventory in the alphabetic manner, so all people can retrieve the inventory

easily. Ware house are free dust and they are keeping environment neatly.

Company is in the good financial position and it running profitable while

comparing with other competitors.

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

Company will have contract with other parties, manufacturing product depending

upon the contract only. Price will be quoted by the consumer itself. After

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

contracted company

Company is giving training for the employees who are new to the concern. They

are giving one week indication training for those employees with their salaries. If

any accident happens to employees they are doing first aid in the company itself,

further they are providing treatment to the hospital which is situated inside the

company itself.

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

department. They are using biometric system for their attendance. Amount will be

credited after the delivery of the goods by the contracted company. Quality of the

product will be achieved through producing standardized product which will

satisfy consumer needs.

Presentation make a person towards effectively but also give opportunity to the

fresher who process and skills.

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SUGGESTIONS

Company can reduce work pressure

The company should arrange counseling program for employees

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

Employee saying food are ok but not good.

CONCLUSION

In this summer training ARUNA ALLOY STEELS PVT LTD ,I learned a

lot and I am the responsible for the work which company gave me for 1month training

really helpful for my carrier . Function of the various department company never fails to

create healthy atmosphere for employee. The working persons are working hardly and

sincerely .and also satisfied ..Each and every employee having good contact, and

relationship and communication with each and every employees .All the employee must

wear ID card ,uniform and shoes neat and clean and in the production department

workers must wear helmet.every one must report the attendance through the machines.

from this I learned punctuality.

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