KEL Report..

AN ORGANIZATION STUDY AT KEL

1.1 INTRODUCTION

An organization study is a systematic and analytical cruise to seek

the truth of organization business, provide an insight in the practical field of

management. An organization is an engine that works together to the prosperity.

This is an organization study report a Kerala Electrical and Allied

Engineering company limited (popularly known as KEL), Kundara unit. Kerala Electrical

Ltd (KEL) was started as Electrical and Allied Industries Pvt. Ltd (EAIT) at Kundara in

1946 and later in1964 it was taken over as an undertaking of Govt. of Kerala engaged in

the manufacture of Electrical engineering goods.KEL has also a well organized quality

control division. KEL is one among the largest, most vibrant and productive public sector

undertaking, under the government of Kerala.

The prime consideration is selection KEL for the study is that, as the

company works for the past 98 years .It would be equipped with well established

organization structure department and facility. So study and analysis of this organization,

its status, various issue and responsibility of the individual in different levels will help to

obtain a vast level of Knowledge.

Thus studying this various aspects of organization is great benefit to

the management students. So this organization study helps me to understand practical

knowledge about the function of an organization.

Institute of Management in Kerala, Kundara 1


1.2 OBJECTIVES OF THE STUDY

Some of the objectives of conducting the organization study is as follows:

• To study about the organization structure.

• To understand about the function of various department.

• To know the financial position of an organization.

• To identify the strength , weakness, opportunities and threat faced by the

organization.

• To understand the different business operations carried out in the

organization.

• To know the various departments such as Marketing, Finance, Operations,

and Human Resource etc... and its activities and functions.

To conduct SWOT and Porter’s five for analyzing competitive strategies.

To relate theories and concepts in to practical and their by to identify and

Suggest feasibility solution and recommendation.



1.3 METHODOLOGY

Both primary and secondary data were used for the study

Primary Data

In this organization study the role of primary data is important.

Because most of the data are getting through primary sources like direct

interview, face-to-face communication observation etc...

In this study the primary data sources are:

• Discussion with the department heads.

• Discussion with divisional heads.

• Personal interaction with workers in the company.

• Through observation of function of organization.

Secondary Data

In this organization study the secondary data is very important than

that of primary data. Published documents, journals and magazines are the

important secondary data. So these are also needed for the completion of the

organization study.



1.4 SCOPE OF THE STUDY

Organization study is used to know the working of an organization and its various departments.

It helps to analyses how well the organization performed its activities.

This study helps to interact with the organization executive of the company.

Organization study mainly deals with the environmental analysis of the organization based on the assumption that both the External and Internal factors control the organization.

The organization study incorporates the structure, product, policies, the different activities and a SWOT analysis of the organization.

This study helps in practical aspects of the theories which are learned in the classroom.

1.5 LIMITATIONS

Organizational limitations

Most of the employees were very busy with their office work. Some of the

records were kept confidential so that data were unable to be collected.

Time constrains

This is a Fifteen day study and this time is not enough to study an

organization thoroughly.

Possibility of biased information.

In an organization there is a chance of giving biased information from the

executives to the researchers.



1.6 CHAPTERISATION

CHAPTER 1 deals with the introduction of the topic .It contains the objectives of the

study, its scope, methodology and limitation of the study .

CHAPTER 2 deals with the industry profile.

CHAPTER 3 deals with the company profile and the various services provided by the

company.

CHAPTER 4 deals with the organization structure and the functioning of the

departments.

CHAPTER 5 deals with the objective wise analysis of the study.

CHAPTER 6 deals with the SWOT analysis and Porter’s five force model analysis.

CHAPTER 7 deals with findings, suggestions and conclusions



2.1 INDUSTRIAL PROFILE

2.1.1 ELECTRICAL INDUSTRY

Introduction

The energy is neither be created nor be destroyed but it can be

converted from one form to another. The generation of an electrical energy is nothing but

the conversion of various other forms of energy into an electrical energy. The various

energy sources which are used to generate an electrical energy on the large scale are

steam obtained by burning coal, oil, natural gas, water stored in dams, diesel oil, nuclear

power and other non-Conventional energy sources.

The electrical power is generated in bulk at the generating stations

which are also called power stations. Depending upon the source of energy used, these

stations are called thermal power stations, hydroelectric power stations, diesel power

station, nuclear power stations etc...This generated electrical energy is demanded by the

customers. Hence the generated electrical power is to be supplied to the customers. The

electrical power industry provides production and delivery of electrical power (electrical

energy) often known as power or electricity in sufficient quantities to areas that need

electricity through a grid. Many house hold and business need access to electricity,

especially in developed nations, the demand being scare in developing nations. Demand

for electricity is derived from the requirement for electricity in order to operate domestic

appliances, office equipment, industrial machinery and provide sufficient energy for both

domestic and commercial lighting, heating, cooking and industrial processes. Because of

these aspects of the industry, it is viewed as a public utility infrastructure.



In many countries electric power companies own the whole

infrastructure, from generating stations to transmission and distribution. For this reason,

electric power is viewed as a natural monopoly. The industry is generally heavily

regulated, often with controls and is frequently government-owned and operated. The

nature and state of market reform of the electricity market often determines whether

electric companies are able to be involved in just some of these processes without having

to own the entire infrastructure, or citizens choose which component of infrastructure to

patronize.

2.2 WORLD SCENARIO

Although electricity has been known to be produced as a result of

the chemical reactions that take place in an electrolytic cell, Since Alessandro Volta

developed the voltaic pile in 1800, its production by this means was, and still is,

expensive. In 1831Michael Faraday devised a machine that generated electricity from

rotary motion but it took almost 50 years for the technology to reach a commercially

viable stage. In 1878, in US, Thomas Edison developed and sold a commercially viable

replacement for gas lighting and heating using locally generated and distributed direct

current electricity.

The world’s first public electricity supply was provided in late

1881,when this streets of Goldalming in the UK were lit with electric light .This system

was powered from a water wheel on the River Wey which drove a Siemens alternator that

supplied a number of arc lamps within the town. This supply scheme also provided

electricity to a number of shops and premises.

Coinciding with this in early 1882, Edison opened the world’s first

steam powered electricity generating station at Holborn Viaduct in London, where he had



entered into an agreement with the City Corporation for a period of three months to

provide street lighting. In time he had supplied a number of local consumers with electric

light. The method of supply was direct current (DC).

Tesla’s alternating current system remains the primary means of

delivering electrical energy to consumers throughout the world. While high voltage DC is

increasingly being used to transmit large quantities of electricity over long distances or to

connect adjacent asynchronous power systems, the bulk of electricity generation

transmission, distribution and retailing take place using alternating current.

2.3 INDIAN SCENARIO

Electrical Industry came into existence after the period of the First

World War, and the first one was a fan industry in Calcutta in 1921.The manufacturing of

the electrical equipments like Transformers, Generators, Insulators etc... took up later.

Heavy electrical industry covers units manufacturing large plants and machinery required

for power generation, transmission, distribution and utilization. These include turbo

generators, boilers, various types of turbines, transformers, motors and switch gears. The

major areas where the heavy electrical equipments are used are the large projects for

power generator including nuclear power stations, Petro chemical complexes, chemical

plants, integrated steel plants etc...The share of the domestic equipment is about 66% of

the country’s generation capacity.

The industry has also established a strong manufacturing base to

the requirement for the equipment for the equipment for the nuclear power plants in the

country. The domestic heavy electric equipment manufacturer are making use of the

developments in the global market with respect to the product designs and upgrading of

manufacturing and testing facilities. The industry is also competitive in the field of design



and engineering as the skill sets available in the country are relatively less expensive.

2.4 STATE SCENARIO

The first public sector electrical equipment industry setup in Kerala

was the Metropolitan Engineering Company limited in Trivandrum in 1945. It was

followed by the starting of Electrical and Allied Industries Pvt. Ltd (EAIT) at Kundara in

1946. EAIT at 1964 was taken over by Govt., which was registered as a Govt. of Kerala

undertaking. At present there are five public sector electrical equipment industries

working in Kerala and they are:

• Metropolitan Engineering Company Ltd

• United Electricals Ltd.

• Traco Cables

• Kerala Electrical & Allied Company Ltd.

• Kerala State Electronics Development Corporation Ltd.

Table No: 2.1

No Company Name Products

1 Metropolitan Engineering Co.Ltd Isolators, Fuses, Switches

2 United Electrical Ltd Meters, Motors, Capacitors

3 Traco Cables Telephone cables, PVC Cables

4 Kerala Electrical &Allied Co.Ltd Alternators, Transformers

5 Kerala State Electronics Development Co.Ltd.

Capacitors, Resistors, Television



3.1 COMPANY PROFILE

The Kerala Electrical & Allied Engineering Co. Ltd., popularly

known as KEL was established in 1964 in the State of Kerala, India and is fully owned by

the State Government. (KEL) is a multifaceted company fully owned by the State

government. Through its three production facilities, located in various districts of the

State, this ISO 9001: 2000 complaint company provides basic engineering services and

products to many of its clients besides executing projects of national importance for high

profile clients like various defense establishments.

The company manufactures and markets products like general

purpose brushless alternators, brushless alternators for lighting and air-conditioning of

rail coaches, medium power and distribution transformers, BLDC Fan as well as

structural steel fabrications The product categories for defense applications include high

frequency alternators, frequency convertors, special alternators and power packs for

missile projects. The power packs designed and supplied by the company for missile

projects like Falcon, Prithvi, Trishul and Akash have been pioneering efforts. The

company has also supplied special alternators to the Army (Military Power Cars) and Air

Force (Radar Applications.)

The company's all-India marketing network with regional offices in

all metro cities cater to major institutional clients like the State Electricity Boards, Indian

Railways and various defense establishments besides the general market clients. KEL is

one among the largest, most vibrant and productive Public Sector Undertaking, and is

fully owned by the Government of Kerala. A multi-product engineering company,

consistently catering to an envious client base, ranging from the army and air force of

India to world-renowned space research organizations, highly competent engineering

companies to mammoth institutions likes the Indian Railways. The company with three

state-of-the-art manufacturing units spread across Kerala has a pan India presence with

marketing offices in major metros and select cities.



3.1.1 HISTORY

Kerala Electrical And Allied Engineering Company Limited

known as KEL was started in the year 1947 with 50% of the share for government and

taken over by government in 1964 as an undertaking of Government of Kerala engaged in

the manufacture of electrical engineering goods. Another unit was set up at Mamala

(Ernakulum District) as part of KEL’s expansion programmers which became operational

in 1968. KEL was also entrusted with the charge of Enclose, a sick unit in Palakkad that

was taken over by the government of Kerala in1977, which was developed as their 3rd

unit. In 1986, a High-tech mechanized foundry at Kundara was added to KEL group of

production units. In 1990 a new unit established in Bedradka (Kasargod District), Kerala

with latest technology and modern equipments.

3.2 CORPORATE PROFILE

The corporate office of KEL is located at Kochi. In addition to

these production centers a project division for execution of turnkey projects, an R & D

wing and centralized marketing network are having Head Quarters in the Corporate

Office. The organization has strength about200 qualified Managerial staff and about 1500

employees including special skilled works. The present product range of the company

includes Brushless Alternators for train lighting and air conditioning, ground power unit

(GPU) for aircrafts, high frequency alternators for defense application and Antarctica

expedition, distribution and power transformers, HRC fuses, switchgears, brushless ac

generators. The present sales turnover of the unit is about Rs. 20crores.

3.3 MANUFACTURING UNITS

Kundara unit, Kollam (dist), Inception: 1964

This is an ISO 9001 certified unit which was started in the year 1964



imbibing technical know-how from EVR of France for the purpose of manufacturing

Statodyne Brushless Alternators used for lighting and air conditioning of Railway

coaches.

There are three divisions in this unit namely:

• Statodyne Alternator Division:

Statodyne Alternator Division manufactures Statodyne Brushless

Alternators used for lighting and air conditioning of Railway coaches. Statodyne

Alternator Division has installed capacity of 3000 numbers of alternators per

annum. More than 25000 alternators are in service with the Indian Railway

Station alone.

• Foundry Division:

Foundry Division has a capacity of 1500MT per annum and manufactures

Spheroidal Graphite Iron and Grey Iron Castings. This unit has fully mechanized

molding lines with sophisticated testing equipments to ensure quality castings.

• Battery charging systems division:

Manufactures brushless alternators for automobile battery charging

system. The product has been developed through the company’s own R & D

efforts. The alternator caters to the high power needs of modern vehicles and

heavy earth moving equipment. It offers long life and maintenance free

Operation.

Mamala Unit, Ernakulum District, Inception: 1968

The transformer Division of KEL at Mamala, Ernakulum, was established in

1968, with the technical assistance of BHEL to manufacture supreme quality transformer

for various State electricity Boards, Government Departments, Public and Private Sector



Companies. This division, ISO9001 is certified by TUV, boasts of a long sustained list of

extremely satisfied clients, many of whom who have stood by KEL, for decades. Over

the years relying on the unmatched quality of KEL transformers, electricity boards across

India perfectly maintain a healthy power distribution supply system. The Transformer

Division has production and distribution of medium range power transformers up to

1600KVA. Manufacturing custom-build transformers, for specific requirements is yet

another specialty of KEL. This division undertakes design, fabrication and

commissioning of hydraulic control gates and hoists for power and irrigation projects,

cranes, pressure vessels and other industrial structure.

Olavakkod Unit, Palakkad District, Inception: 1977

Unit started in the year 1977 with technical know-how from UNELEC of

France. This unit manufactures Isolators/Changeovers, Switch fuses, Fuse units/Cutouts,

Distribution fuse boards/Panels and castings used for Industrial, Commercial and

domestic applications through their LT Switchgear Division.

Product Range

• Fuse Switches, Changeover switches, Porcelain Fuse Units.

• Distributions fuse Boards and industrial type switch boards, Distribution Boards.

Project Division:

KEL project wing headed by the GM attached to its corporate office undertakes

turnkey projects in design, fabrication, supply and erection of gates, hoists

and controlling equipments for power and irrigation projects and civil works including

heavy machinery erection.

Edarikkod Unit, Malapuram District, Inception: 1988

Unit was commissioned in 1988 for the manufacture of Brushless



Alternator for Automobiles (BAA). But as per the instruction of the government the

execution of the BAA project was suspended as the government wanted to give top

priority for the implementation of the Kasargod project. The capital outlay originally

envisaged for BAA project was Rs.6.42crores, which was subsequently enhanced to

Rs.12.75 crores due to the cost overrun which is in turn, was consequent to the delay in

execution. Now this unit is used for the manufacturing of Power and

Distribution Transformers.

Marketing Division:

The corporate marketing Division piloted by the GM (Marketing) is

controlling the various service centers and Regional Offices in New Delhi, Bombay and

Madras. And sales and service centers in Kanpur, Calcutta, Bhopal, Hyderabad,

Bangalore, Coimbatore and Trivandrum.

Expansion Project:

While trying to consolidate its exciting units by means of

technological up gradation,KEL in a head on its way with future expansion projects

including brushless alternator for automobiles, Nickel, Cadmium Battery ,special purpose

motor project with technical collaboration from Austria.

3.4 The various products developed by KEL R&D wing are the following:

• 5 kVA,400 Hz alternator for Antarctica expedition for the defense department of

Govt. of India

• 20KW DC manual and self propelled type ground power units for ‘Vayudoot’ for

starting their Aircrafts.

• 30kVA rotary converter for radar application for helicopter starting for Indian

Navy.



• 3KV generator for wind mill applications.

• 5KV alternator for with rectifier regulator unit for battery charging in locomotive

engines.

• 40kVA ground power unit for requirements of starting of fighter aircrafts like

‘MIRAGE’.

• 90 kVA ground power unit for Boeing and Air Bus aircrafts

• 20kVA alternator for powering mobile radar installations.

3.5 Over Seas Partnerships:

As a company in tune with modern technology, KEL have had associated with reputed

overseas manufactures who are experts in their respective fields.

• Inductor type brushless alternator for lighting and air conditioning of rail coaches --- EVR ,France

• HRC fuses --- UNELEC, France

• General purpose brushless a.c generators --- Moteures Leroy Somer, France

• Nickel-Cadmium battery project --- Honda, Japan

• Technical collaboration with ----T-Lin of Austria

3.6 Players in India

• Kerala Electrical and Allied Engineering Company

• H.M.T.D Chennai

• Stone India Calcutta

• Crompton Greaves Ltd Chennai

• Steasalite Ltd

• Press tech India

• Unitec



3.7 KEL-KUNDARA UNIT

The Kundara unit of the company was established in the year 1946

in private sector for manufacture of low tension switches and was taken over by the Govt.

of Kerala in 1964.In the early 70’s the unit was diversified into the field of brush less

alternators for railway lighting. As a part of diversification program, new mechanical

equipments and facilities were added to the unit. KEL had set up a modern iron foundry

which manufactures spherical granite iron and gray iron castings of various grades at

Kundara unit.

The Kundara unit of KEL has manufacturing brushless alternators

which is acclaimed and accepted by the Railways as the most efficient and reliable one.

More than 25000 number of alternators manufactured in KEL are already in operation

with the Indian Railway alone.

3.7.1 Vision Statement of KEL

To be a globally recognized enterprise committed to enhancing

stakeholder value by providing world class engineering and power system solutions.

To achieve our vision by:

• Applying state-of-the-art technology, processes and innovative solutions.

• Building long term relationship with stakeholders in an environment of

fair business ethics and values.

• Creating value through sustainable and profitable growth.

• Leveraging productivity through highly motivated & empowered team.

3.7.2 Mission Statement of KEL

• Ensuring team work at all levels.

• Establishing and maintaining vendor evaluation and rating.



• Establishing and maintaining quality system suitable for meeting customer

requirement.

• Continuous improvement through constant up gradation of technology, process

and skilled manpower.

3.7.3 Core Values

• Fairness, transparency, integrity.

• Trust and mutual respect.

• Passion for professional and operational excellence.

• Corporate and social responsibility.

3.7.4 Objectives

To educate and train our skilled manpower on a half yearly basis at the

rate of 8 hours training per employee to upgrade the skill level and to reduce the rate of

absenteeism to 3% from 5% .Which will be measured on a monthly basis.

3.7.5 Quality Policy

The Quality Policy of KEL, Kundara is to Achieve Customer Satisfaction

by providing the right product and services at the right time as per Customer’s

requirements .

This shall be achieved through

Ensuring team work at all levels.

Establishing and maintaining suppliers’ evaluation and rating.

Establishing and maintaining a quality system suitable for meeting customer

requirement.

Continual improvement through constant up gradation of technology / process and

skilled manpower.



3.8 PRODUCT PROFILE

• Location : Kundara ,Kollam District

• Inception : 1964

• Technical knowhow : EVR of France

• ISO 9001 certified by RWTUV

• Statodyne Alternator Division:

• Used for : lighting & air conditioning of railway coaches

• Capacity : 3000 alternators per year

• More than 25000 alternators with Indian Railway alone.

• Foundry Division:

• Manufactures : Spheroidal Graphite iron & Grey Iron casting

• Capacity : 1500MT per annum

• Induction Furnace : 2x3T

• Fully mechanized molding lines with sophisticated testing

equipment to ensure quality castings.

Fig .3.1



3.8.1 PRODUCT RANGE

Table No: 3.1

No Range Name Purpose

1 3KW,24V Brushless Alternator Train lighting (Third Class Coaches)

2 4.5KW,24V Brushless Alternator Train lighting (Second Class Coaches)

3 4.5KW,110V Brushless Alternator Train lighting (Second Class Coaches)

4 12KW,110V Brushless Alternator 2 Tier AC Coach(Meter Gauge)5 18KW,110V Brushless Alternator 2 Tier AC Coach(Broad Gauge)

6 25KW,130V Brushless Alternator Roof Mounted AC Coaches7 12KW Auxiliary Alternator Diesel Electric Multiple Unit

Coaches8 18.5 KW Auxiliary Alternator Diesel Electric Multiple Unit

Coaches9 2KW Diesel Generator (DG)Set Ground Power Unit

10 50kVA Diesel Generator Set Ground Power Unit11 20kVA Alternator DG Set for Defense Applications

12 5kVA Alternator DG Set for Defense Applications13 25KW Electronic Rectifier Unit Train Lighting (Ordinary

Coaches)14 4.5KW Electronic Rectifier Unit Train Lighting (Ordinary

Coaches)15 BL DC Fan Railway Application

USP

Induction Alternator

Brush less excitation without winding on the rotor. Both field and

armature

windings are embedded in stator slots, hence no limitation for

working speed and



ideal for variable speed application like ---Train, Automobile,

Windmill etc…

Totally enclosed fan cooled version available for

Dusty/Humid/Corrosive

environments.

3.8.1 Top customers:

• Integral Coach Factory, Rail Coach Factory

• Indian Railway

• Tanzania Railway Corporation

• Rites

• Station Power Controls Ltd

• L&T

• CGL

• Paras Electricals Ltd

• AVISH AVIATION Equipment Pvt. Ltd

• Medha Servo System

• DIGHI , Pune

• Indian Defense, Air Force

• Bharat Heavy Electricals Ltd(BHEL)

• Bharat Earth Movers Ltd(BEML)



Organizational structure

CHART NO:4.1


GM/UNIT HEAD

HOD M P&A M AS&SHOD

MKTG

M MKTG HOD

MMD

M

MECH

M

TESTING

ELE

AM P&A

AM D&D

M(P)M(P)

REG

M(P)

REG

AM FYFOREMAN

CH

CH

SKILLED

USW

CH CH

SKILLED

USW

APO-1

STAFF

SI

SEC

GUARD

PEON

CH

AM PLNG

FOREMAN

STAFF

CH

SKILLED

SUPERVISOR

AM MKTG

STAFF

GSTORES

SKILLED

USW

AM

MMD

M MMD

STAFF

SKILLED

SKILLED

STAFF

JOSTAFF

AAO-2

USW

STAFF


5.1 DEPARTMENT PROFILE

5.1.1 Personnel & Administration Department

5.1.2 Finance Department

5.1.3 Marketing Department

(a)After Sales Department

5.1.4 Production Department

5.1.5 Planning Department

(a) Dispatching Department

5.1.6 Materials Management Department

5.1.7 Design and Development Department

5.1.8 Quality Assurance Department



5.1 PERSONNEL DEPARTMENT&

ADMINISTRATIVE DEPARTMENT

The term personnel management has now been modified as Human

Resource Management. But in KEL, they still follow the old term Personnel

Management. The Personnel Management controls the personals in company. Personnel

management function has a great role in productivity and quality. A human performance

is the “product of his/her ability and motivation”, right personnel/HOD policies are

important for sustaining ability and motivation in the human element. The technical

functions of this department include recruitment, performance, deployment, wage

agreements, discipline, performance appraisal, termination as well as activities.

There are 8 unions representing the workmen and the staff. The labor

relation climate has long been peaceful and conductive to production.

5.1.1 Policy

To achieve competency of our skilled manpower through constant

training, education and experience in order to product quality.

5.1.2 Objective:



To educate and train our skilled manpower on a half yearly basis at the

rate of 8 hours training per employees to upgrade the skill level and to reduce the rate of

absenteeism to 3% from 5% which will be measured on a monthly basis.

Department Structure

Chart No: 5.1.1

5.1.3 Duties of a Personnel Manager

Manpower planning.

Recruitment.

Selection.

Placement Procedures.

Training and development.


General Manager

Manager

Asst .Personnel

Staff


Performance appraisal.

Transfer and Promotion.

Employee Welfare Administration.

Disciplinary action.

Wages and Salary Administration.

Leave Administration.

Trade Unions

Time Office Administration.

Security Office Administration.

Public Relations.

General Estate Keeping.

House Keeping Activities.

Typing Section.

MAN POWER PLANNING

Manpower planning is one of the important functions of personal and

administrative management. It means corrective utilization of man power. They

undertake the task of creating human capacities which ensures that fully contributes to

the total organizational performance. They also have the responsibility for the

determination of manpower recruitment of the organization both in the right number and

of the right kind.

RECRUITMENT

Mainly three types of recruitment are following in KEL. They are:



1. Direct Recruitment:

On the basis of rules and regulations prevailing in the company, the

management can recruit the technical hands such as unskilled workers and

semiskilled workers. They are appointed as apprentice trainee. They are recruited

through employment exchanges. Sometimes security guards are also appointed

through direct recruitment.

2. Internal Recruitment:

In certain cases, company conducts an internal notification for higher posts. The

qualifications, experience, additional qualifications etc…required must be clearly

specified in the notification. The internal recruitment is through promotion, only

after considering the merits and performance of the employees.

3. External Recruitment:

In this type, recruitment is done through Kerala Public Service Commission

(KPSC).On the vacancies intimated by the management, KPSC advertises

through the media calling appropriate candidates. The test/ interview is conducted

by the KPSC and post them into the company.

SELECTION

Selection is mainly for the ex service men that is by an agency through application,

scrutiny test. The persons selected are based on interview for the placement of job.

GRIEVANCE HANDLING

Grievance is also handled by personal and administrative department. They collect the

grievance of the employees and informed to the top level managers and solved their

problems. There is a suggestion box inside the organization for the grievance of the

employees.



LEAVE STRUCTURE.

Casual Leaves – 14 days

Sick leaves – 14 days. (For more than three consecutive days sick leave,a medical certificate should be produced.)

Privilege leave -30 days

TRAINING & DEVELOPMENT

It is the effective tool for employees’ development. Three types of training

are adopted in KEL.

1. Induction Training:

The fresh employees and the transferred employees from other units must

undergo this training. A training schedule is prepared by the personnel department

and directs the employees to the various sections or departments for the training.

2. External Training

This is given to the permanent employees such as Engineers,

Officers and other Executives conducted by External agencies or External

organizations.

3. Internal Training

This type of training is given to technical persons working in various

division/Sections. Apprentice training also given as a part of internal training.

Work rotation is another technique for internal training. Management gives

training for a period of one year for the fresh employees. After the successful

completion of training he is recruited on probation and after he is appointed in

regular service. This training is compulsory for the company.



DISCIPLINARY ACTION

The personal and administrative department is responsible for disciplinary action

against violation of rules and regulations which are mentioned in the standing order.

Some Cases are

Willful in subordination.

Disobedience.

Fraud.

Theft

Dishonesty

Illegal Absence.

Sexual harassment

PROCESS

1. Case reporting to the GM.

2. Issue show case memo.

3. Warning or enquiry.

4. Inform to head office.

5. Approval for enquiry and posting of inquiry officers.

6. Meeting management witness and employee witness.

PUNISHMENT ACTIONS

Suspension

Increment Banning.

Dismissal.



TRADE UNION AND LABOUR RELATIONS

Electrical and Allied Workers Union (U.T.U.C).

Electrical and Allied Industries Employee Union (I.N.T.U.C).

KEL Employees Organization (S.T.U).

KEL Employees Union (C.I.T.U).

WELFARE MEASURES

Loan Facility

Canteen

Recreation Club

Education Benefit

Death Assistance

Funeral Assistance

Retirement Assistance

Marriage Contribution

Provident Fund

ESI

Accident Benefits

Maternity Leave

Drinking Water

Latrine & Bathroom

ALLOWANCES



Washing allowances

Night Shift allowances

Milk allowances

Food allowances

Uniform allowances

Insurance allowances

Risk allowances

Heat treatment allowance

Cycle allowance

WAGES & SALARY ADMINISTRATION

Wages:

Wages depends on the long term agreements exist for duration of four years.

Wages are fixed after bilateral discussion with labor unions and management. These

wages are enacted only after the approval from the management. There is no profit

sharing, but they get indirect benefits out of realized profits.

Salary:

Salary = Basic Pay + DA + HRA + Allowance DA is based on the cost of living

index at Kollam district. Department of Economics and Statistics fix the

index. Government fixes the DA for officers. Allowances include washing allowance,

risk allowance, heat treatment allowance and night shift allowance etc.In fact there are 7

unions exist in KEL. But of these 7 unions only 4 unions are affiliated unions.

KEL has got 4 affiliated unions:



Electrical & Allied workers Union (UTUC).

Electrical & Allied Industries employee Union (INTUC).

KEL employees organization (STU).

KEL employees union (CITU).

TIME OFFICE ADMINISTRATION

Biometric punching system is being followed for all employees. Attendance

bonus is used for motivating employees. The scheme provides with 12days bonus salary

for employees with full attendance.

There are three shifts and a general shift

Table no.5.1.1

First Shift 12:00am to 8:00am

Second Shift 8:00am to 4:00pm

Third Shift 4:00pm to 12:00am

General Shift 8:00am to 4:30pm

TRANSFER & PROMOTION

TRANSFER

At the time of appointment every employee is given a declaration to the

management regarding, they are willing to work in all over India where ever the company

has units and regional offices. As par the manpower requirements, transfer the employees

to different units. In case when employee request to transfer as per his convenience, if the



management found the reason is relevant they gives consent. But the employee is posted

as the junior most employee of that unit in the same category.

PROMOTION

It is based on the promotion policy agreement; it’s strictly based on the

seniority of service. If there is vacancy in higher post, then promote to the higher post

otherwise give the higher grade scale.

5.2 FINANCE DEPARTMENT

Finance department is headed by the Head of the Department

(finance) .The main responsibility of Head of the Department is to take financial

decisions, which includes investment decisions, financing decisions and dividend

decisions. The manager has to keep constant touch with the entire department and also

keep all the record of the transaction. At the end of every year he is responsible for

making the financial statements.

Financial statements are prepared for the purpose of presenting a periodical

review of report on progress by the management and deal with the status of investment in

the business and result achieved during the uses of funds. Financial statements reflect a

combination of recorded facts, accounting principles and personal judgment. In order to

understand the financial performance of the company is necessary to analyses the

Balance sheet, Profit and Loss account.

To maintain all books of accounts up-to-date as per the statutory

requirements and manage working capital, preparation of budget ensuring discipline in

the case of financial resources preparation and analysis of the book of account. The main



books of account maintained in KEL are cash book, bank book, purchase register, journal

records, pay roll statements and Central excise record. The software used is Tally 9.0

5.2.1 FUNCTIONS

To ensure maximum effective operation and healthy relation with customers,

workers and financiers etc.

To maintain all books of account up to date as per the statutory requirement.

To manage working capital.

Preparation of budget ensuring discipline in the case of financial resource

Department Structure


General Manager

Asst.manager

(HOD)

Asst. Accounts

Officer 2

Jr. Officer

Staff


Chart No: 5.2.1

5.2.2 Objectives:

To ensure maximum efficiency of operation and healthy relations with

suppliers, Workers, financiers etc.

To maintain all books of accounts up to date as per the statutory

requirements.

To manage working capital

Preparation of budget ensuring discipline in case of financial resources.

Preparation and analysis of books of accounts.

In KEL Financial statements are audited internally and externally. The

internal audit is done by corporate office while the external audit is done by government

officials. Also includes financial forecasting and planning, acquisition, safe keeping of

securities and other valuable documents like insurance policies etc.

The main responsibility of the financial department is to make.

Investment decisions.

Financing decisions.

Dividend decisions.

5.2.3 The main account books maintained in KEL are:

Cash Book.



Bank Book.

Purchase Register.

Sales Register.

Journal Register.

Central Excise Register.

VAT Records.

The software used in accounting purpose is Tally 9.0

5.2.4 Significant Accounting Policies

1. Accounting Convention

The financial statement is prepared under historical cost convention on accrual

basis and in compliance with Companies ACT 1956.

2. Fixed Assets

Fixed assets are stated at cost less depreciation. Assets and liabilities are recorded with higher cost.

3. Depreciation

Depreciation of fixed assets has been provided as per rates indicated in line X1V of Companies ACT 1956 under written down value method.

4. Inventories

Finished goods are valued at cost on market price whichever is less.

Excise duty is also taken into consideration



Scraps are valued at net realization value

Goods in transit are valued at cost.

5. Sales

Sales comprises of sales of goods and services including excise duty.

Price variation claims on sales effective are accounted for on accrual basis.

6. Consumption

Loose tools issued to shop floor are stated as consumed and return off as scrap.

Consumption of materials for production is computed on derived basis.

7. Liability on material on transit

The liability on account of bank charges and other expenses on material in transit on the date of closing is accounted on approval basis.

8. Research and Development

Capital expenditure on R&D is treated as an addition to fixed assets and revenue expenditure on R&D is charged to P&L account under appropriate heads in the year in which it is incurred.

9. Contingent Liability

Contingent Liability are not provided for, but disclosed in notes on accounts.

5.2.5 Source of Fund:

Main source of fund are from Government and from banks, Mainly 5 banks that

offer funds to KEL. They are:



State Bank of India

State Bank of Travancore

State Cooperative Bank

Federal Bank

State Bank of Mysore

5.3 MARKETING DEPARTMENT

The main function of the marketing department in KEL is to establish and

maintain a quality system suitable for organization’s vision, commitments towards

products and services rendered to the customers.

The KEL’s main product is 4.5 KW and 25 KW alternators. The main

customers of KEL are Indian Railways, L&T, BHEL (Bharath Heavy Electrical Limited),

BEML (Bharath Earth Movers Limited) and Defense (Prithvi and Trishul Missiles). But

always main user is Indian Railways. As the target consumer is Indian Railway, KEL’s

marketing department has no need for marketing the product. So there are no markets

research and analysis activities done by marketing department.

KEL participate in open tender as and when railways invite tenders.

KEL’s service centers are located in all the metropolitan cities. These offices give all

support services to sale and marketing lean guarantee complete customer satisfaction. As

the number of customers is limited, there is having short channel of distribution.

5.3.1 Policy



To provide customer satisfaction and confidence to the customers that

quality is being maintained and will be continuously sustained in the delivered product by

providing the right product at the right time.

5.3.2 Objective:

To meet customer needs both stated and implied in order to maximize the

order realization by 10% within one year.

To reduce sundry debtors by maximizing the collection.

Increasing the sales by minimum 10% by supplying the items in time.

5.3.3 Scope

The procedure covers all tenders enquiries, submission of tenders, acceptance and

amendments of orders execution, invoicing and collection of payment.

Departmental structure:


General Manager

Asst .Manager

Foreman

Staff


Chart No: 5.3.1

(a) Marketing Department Functions:

Liaison with customer for receipt of tender enquiries.

Purchase of tender documents.

Evaluation and review – both technical and commercial.

Pricing of the product, Preparation of order, Submission of tender.

Tender opening, Negotiation, Follow up of order.

Receipt of order review and acceptance.

Order register

Amendments from customers.

Issue of sale order and follow up, Road permits.

Arranging of inspection.

Preparation of delivery Chelan.

Invoicing

Collection of payments.

Management information and records keeping.

RECEIVING THE TENDER:

Railway as they only customers of the KEL they have annual requirement.

For that they invite individual tenders. They evaluate the offer on the basis of the

past performance .Capacity, Technology, etc and award the tender to the best

bidder. It is the duty of the marketing department to receive the tender.

EXECUTION:

Intimation goes to the production and other concerned department from

marketing department. Planning department plan the production actives .Material

department purchase the raw materials, store these material and issue item. It is the



duty of the material department to produce item accordingly to the order and in

time. When the production is over, production department will inform the

marketing department.

ARRANGE INSPECTION:

Marketing department arranges the inspection. They invite the inspection

authority .Railway have their owe inspection authority. These authority are RDSO

and RITES they come to KEL and test the product accordingly to there

specification

DISPATCH TO THE RESPECT CONSIGEES

If the inspection agency is satisfied with the quality of the product then it

dispatch to the respected customer.

INVOICES PREPRATION:

Invoice IS prepared by the marketing department. Invoices contain

number of finished goods to sent, rate, total price etc.

SENT TO PAYMENNT AUTHORTY

Marketing department will sent those invoices to the paying authority of

the Railways. Railway has a paying authority called FANCO.

COLLECTION OF PAYMENT

Marketing department collect the payment from the payment authority of the Railway. Collection of payment is handed over to the finance department.

(b) Marketing strategies followed by KEL



Strict quality control

Prompt supplier

Trained sales personnel

Credit facility

Reasonable price

Penetrating new markets

Appropriate advertisement.

Pricing strategies

Pricing strategies that are used in KEL are

Cost plus pricing

Comparative pricing

Pricing is also influenced by last tender that accepted by the

Indian Railway.

(c) List of registers used in Marketing Dept:

Tender Register

Sales Order Register

Payment Register

(d) Market Share Analysis:

Table No: 5.3.1

COMPANY MARKET SHARE



KEL 26%

HMTD, CHENNAI 8%

STONE INDIA, CALCUTTA 28%

PRESS TECH INDIA 8%

STEASALITE LTD 28%

UNILEC 0%

CROMPTON GREAVES LTD, CHENNAI 2%

Market share Analysis

26%

8%

28%

8%

28%

2%

Market share

KELHMTD,CHENNAISTONE INDIA,CALCUTTAPRESS TECH INDIASTEASALITEUNILECCROMPTON GREAVES LTD,CHENNAI

Chart No: 5.3.1

Competitors



BHEL

HMTD Chennai

Stone India Ltd

Press Tech India

IC Electricals

Crompton Greaves Ltd, Chennai

P D Steels

KAPSON

UNILEC

(a) After sales department

Policy

To provide customer satisfaction and confidence to the customers that

quality is being maintained and will be continuously sustained in the delivered products

by providing the right product at the right time.

Objective

To improve upon customer satisfaction by reducing customer complaints, other

than product complaints by 50% within 6 months.

To meet customer’s need both started and implied in-order to maximize the order

realization by 10% within one year.

To increase customer satisfaction by 10% of the existing index by avoiding delay

in providing on-time services by 10% within one year.

After sales and service department actives

Mainly two actives



1. Preventive action

a. Periodic action

b. Intimation of design changes

c. Training to customers

2. Servicing

a. Customer complaints

b. Warranty service & training

c. Maintaining tools , instrument and spares

d. Maintain calibration

5.4 PRODUCTION DEPARTMENT

The main function of the production department is the creation of a

product or service required satisfying customer needed wants and desire. Main problem

that KEL Kundara faces is that the freight charge of raw materials is high. KEL mainly

purchases raw materials from France, Germany and from some other states in India. This

will lead to the increase in the cost of production and also there will be an increase in the

selling price.

Structure of Production Department


General Manager

Manager 3

Work Manager


Chart No: 5.4.1

5.4.1 Policy

Right product at right time will result the customer satisfaction through team work.

5.4.2 Objective

Right product : reducing the rework/rejection. In house failures reducing rework

/failures by 25% at the following stage.

a) Shaft ground

b) End shield / turned/drilled

c) High voltage test/ wound frames

d) Testing of alternator with rectifier regulator unit

Right time : achieving better on-time delivery by interesting the number of

satisfied customers by 85% within the next three months and 90% within one year

Team work : improving employee involvement and team work through generation

of two suggestions as per quarter and implementing a minimum of two

improvement projects per year.

5.4.3 Product Features:


Asst Manager

Forman

Worker


The system consists of brushless induction type alternators and a

completely static regulator rectifier unit. The alternator is completely devised of any type

of moving cost on sliding contacts and this ensure a trouble free operation without

periodically any maintenance. The regulator rectifier unit makes use of silicon diodes,

transformers and magnetic amplifier. All the components used in the rectifier regulator

units are unlike transistors and the thyristorstailor made to the requirements of the

hazardous application to which they are put into rolling stock. As such the reliability of

the KEL generating system is high.

5.4.4 Production Process

1. Ensure availability of material and allocate the work.

2. Receipt of materials /tools.

3. Projecting requirement of measuring and testing equipments.

4. Production process.

5. Return of items to store due to non conformity during production process.

6. Review of N.C items found during process.

7. Offering for inspections.

8. Issue of F.G.T.N (Finished Goods Transfer Note)

9. Return of excess material.

10. Production monitoring.

11. Breakdown intimation.

5.4.5 Equipments used in Production:

Lathes

Vertical turret lathes

Milling machines

Hydraulic press

Drilling machine

Slotting machine



Shapers

Bending machine

Welding machine

5.4.6 Different Sections of Production Department:

Fabrication shop

Old machine shop

New machine shop

Winding & assembling section

Foundry

Process Flow


NEW MACHINE SHOP

ASSEMBLY & WINDING UNIT

OLD MACHINE SHOP FOUNDRY UNIT

REGULATOR SECTION

FABRICATION


Chart No: 5.4.2

Process flow Alternator

5.4.7 Production Process:

Production of alternators comprises of two main stages:

Component Manufacturing:

70% of the components used in the alternators are made in the house. These can

be classified into the following groups.

Pressing and rolled parts Turned parts Tapped and drilled parts Welded parts

Supplementary activities are as given below.

Painting Tool room Electrical and Mechanical maintenance

The main activities of these sections are explained below.


FINISHED GOODS

PAINTING SHOP

TESTING


Press Shop:

Infrastructure available includes hydraulic pressure mechanical

presses, rolling machines, shearing machine and press brake. But many of the

presses and shearing machine are old and need progressive replacement.

Automatic press protection systems need to be installed to prevent accidents. The

workers are all qualified ITI holders in this section.

Machine Shop:

The main works that take place in this section are boring, drilling, facing,

centering, turning, milling, grinding and balancing. Two machine shops are there,

they are Old Machine Shop and New Machine Shop. Central lathes, Capstain

Lathes, Radial drilling machines, milling machines, grinding machines are being

used. The operators are all qualified ITI holders.

Fabrication Shop:

The stator frames, the regulator boxes and the terminal boxes are being

fabricated here. Welding machines are used in this section. Grinding work is also

done here.

Painting:

The regulator boxes and the terminal boxes are zinc plated after pre-

treatment. The stator and pulleys are painted with enamels after surface treatment.

The process is manual and conventional. For better consistency, semi/fully

automated painting system could be established.

Tool Room:



The tool room functions solely on the skill of the die makers. The tools are

made using conventional methods of hand-marking and filing. Modernization has

been kept abeyance due to scarcity of finance. Making of new tools for replacing

worn out ones takes long time due to the conventional techniques of tool making.

Accuracy also varies from person to person. Hence modernization of tool room is

to be speeded up.

Assembly, Testing and Finishing:

The alternator section comprising assembly, testing and finishing is headed by the

Asst.Manager. The assembly, testing and finishing section are given below:

Assembly:

Assembly mainly involves the following operations,

1. Assembly of rotor and stator

2. Fixing bearing and end shields3. Fixing alternator pulleys. Assembly operations are carried out manually. Since there is no

pneumatic puller, the dismantling operations are not so easy.

Testing:

There are 3 test beds. There s provision for mounting the alternators near

the drive and subjected to all the routine tests as per the RDSO specifications.

Internal inspection is done for all the machines (100%). The RITES and RDSO

inspectors conduct type test and their inspection, the inspection affix seal on each

tested alternator. The test beds needs modernization. The computer aided testing

is to be provided so as the increase the output and consistency. More over

automatic error printout from the computer eliminates the manual recording of



test data as well. The huge cost cannot be afforded during the present stage of the

company.

Finishing:

Finishing work on alternators comprises general checking, tightening the T.B

screws, cover fixing, sealing and packing in wooden cases. Pneumatic screw

drivers are better for consistent tightening of screws.

Finishing is the last stage in the manufacturing cycle, before physical dispatch to

the customer, the worker in this section should have a better orientation towards

quality and customer satisfaction.

Other important sections of Production Department:

o Regulator Section:

Functions are:

AC to DC conversion (Rectification)

To Charge Battery.

o Foundry Unit:

Foundry or casting is the process of producing metal/alloy

components parts of desired shape by pouring the molten metal/alloy into

a prepared mould and then allowing the metal/alloy to cool & solidify.

The solidified piece of metal/alloy is known as casting. The Foundry unit

in KEL was established in the year 1985. Silica sand is brought to KEL

from Cherthala for the processing of silica sand is 1500 degree Celsius

where Ordinary sand requires only 1000 Degree Celsius to melt. The silica

sand is dried and then only will used for processing.



o Furnace:

The total capacity of the furnace is 31/2 ton. The main advantage is

that we can prepare any grade metal. This furnace is worked under

induction principle. The voltage required for the furnace is from 350volt to

1500volt.

5.5 PLANNING DEPARTMENT

Planning is one of the important functions of the management.

The main functions of the planning department is to plan and schedule for the production

and dispatch. This department includes both planning and dispatch sectors. The objective

of the planning department is to co-ordinate the manufacturing operations in line with the

marketing plan so as to achieve the production target in time.

Structure of Planning Department

General Manager

Asst Manager



Chart No: 5.5.1

5.5.1 Policy

To establish and maintain a documented procedure for planning the

production availability of materials and schedule of dispatches for enabling the

organization to provide the right product and services at the right time every time as per

the customer requirements.

5.5.2 Objectives

To minimize the difference between planned and achieved production.

Monthly plan and monthly production schedule for the next month will be issued

on the last working day of every month.

5.5.3 Functions

Get information from marketing department about the orders received. The

information contains all details about the customer quality and quantity.

Analysis of orders and decide about when to start and how to start.

Information is then passed to production department.

Check whether materials are available in the store department if not then the

information is passed on to the materials department to purchase the materials.

5.5.4 Planning Process /Activity

1. Yearly Planning

2. Quarterly Planning


Foreman GRI

Staff


3. Monthly Planning

4. Preparation of work order.

5. Issuing of work order.

6. Raising Purchase Return.

7. Monitoring Production.

8. Analysis of production short fall.

9. Maintenance of records.

PROCESS FLOW CHART OF PLANNING DEPARTMENT


START

Monthly Production ScheduleMonthly plan

Preparation of work orders issue to various department

Raising Purchase Requisition for ‘A’ value items

Monitoring of Production&

Analysis of Short Fall

Request for Delivery

Period Extension to


YES

NO

CHART NO: 5.5.2

1. (a). Dispatching Department

In KEL dispatching activities are controlled by the planning department itself.

Objective

Eliminate wrong dispatches and reduce transit damages to 50% within one year.

Policy

Delivery of products in the right time.

Process/Activity

Checking of finished goods and storing (FG Store).

Checking and preservation (FG Store).

Packing of finished goods (F.G.C.F.G.)


Short fall if

any?

Dispatch as per Schedule

Request for Delivery

Period Extension to

END


Intimation for preparation of D.C and excise gate passes.

Delivery of finished goods as per D.C

Collection of acknowledge D.C from consignee.

KEL has tie up with a number of transporters for their dispatching and

transporting activities. About 30 companies are constantly interacting with the firm.

Some of them are:

M/S Kerala Transport Co. Mukkada. Kundara

M/s Suraj Goods Transport Service. Kollam

M/s Carvan Goods Carriers Pvt ltd .kundara

Flow Chart of Finished Goods Store


START

Checking Preserving&

Storing of Finished Goods

Packing of FG as per DC

Delivery of FG as per DC

Collecting of

PackingInstruction

s


Chart No: 5.5.3

5.6 MATERIALS MANAGEMENT DEPARTMENT

This department deals with the purchasing of raw materials for the

production. The main functions are

Purchasing.

Storage.

Inventory control.

Standardization.

Supplier Rating.

General Store.

Material Management means managing materials in an organization with

the main objective of reducing the cost and efficient handling of materials at all stages


Collecting of


and sections in an undertaking. This department deals with material costs, supply

utilization and handling.

5.6.1 Policy

To establish and maintain the process for development for procurement of

right material and service at right time, from approved suppliers as our requirement and

those of our customers.

5.6.2 Objective

Procurement of required quality and the quantity of materials at the best price.

Maintaining continuity of supply to ensure production schedule at the minimum

investment.

Avoiding of duplication of materials leading to waste of materials

and equipments.

Creation of goodwill for the company through dealings with suppliers.

To achieve 100% on time delivery by suppliers

To develop alternative sources to the maximum extent possible.

Structure of Materials Department

Institute of Management in Kerala, Kundara 58Asst .Manager

Manager

Manager

HOD

General Manager


Chart No: 5..6.1

5.6.3 Functions

Procurement of requires quality and quantity of materials at the best price for

production as per design.

Maintaining continuity of supply to ensure production schedule at minimum investment i.e. inventory handling.

Avoidance of duplication of materials leading to wastage of materials and equipments.

Creation of goodwill for the company through dealing with the suppliers, ABC analysis is used in inventory handling of materials.

5.6.4 Sub Divisions of Materials Management Department

1. General Store

2. Purchasing.

3. Supplier Rating.

1. General Store

Objectives



To establish and maintain a quality system procedure for receiving,

storing and issuing of materials.

Scope

This covers all materials used in production, installation and servicing of plant

and machinery.

Quality System Procedure

1. Receipt of material.

2. Quality verification.

3. Preparation of GRNS.

4. Offering for inspection.

5. Inspection status.

6. Rejection Intimation.

7. Segregation.

8. Issue of materials.

9. Issue of materials to sub contractors.

10. Stock Intimation.

2. Purchasing

Objective

To establish and maintain a quality procedure for purchase of goods and services

to ensure that all materials and services obtained from outside sources fully meet our

requirements and those of our customers.

Scope



This covers all materials and services used in production, installation and

developments of technology and servicing of plant and machinery.


1. Vetting of Purchase Return.

2. Registration of sub-suppliers, new suppliers.

3. Floating of enquiry.

4. Emergency purchase.

5. Comparison of quotation.

6. Purchase order preparation.

7. Placement of purchase orders.

8. Purchase order amendment.

9. Follow up of purchase order.

10. Sub-contracting jobs.

11. Advice in discrepancies.

12. Rejection intimation.

13. Rejection Return.

14. Acceptance with deviation.

15. Issue under positive recall.

16. Retention of quality records.

17. Settlement of payment.

3. Supplier Rating

Objective

To establish and maintain a system for supplier rating, ensure consistency and

reliability in quality and delivery of products.



Scope

All suppliers supplying items that goes directly or indirectly into the final

product.


1. Supplier Evaluation

2. Supplier Rating.

3. Final supplier’s assessment.

4. Supplier Re-assessment.

Supplier evaluation process

Considerations

Past experience in the related field.

Reputation of the supplier.

Experience with associated units.

Supplier capacity assessment and supplier evaluation.

Supplier rating

Weightages

Quality rating - 60 points

Delivery rating - 15 points

Service rating - 20 points

Organization rating - 5 points



5.7 DESIGN AND DEVELOPMENT DEPARTMENT

5.7.1 Policy

To establish and maintaining a documented procedure for designing the

right product in the right time. This is achieved through continual improvement through

constant technology up gradation and team work at all levels so that customer satisfaction

can be achieved.

5.7.2 Objective

To design the alternators and its accessories as per design, plant on receipt

of the approved drawings or customer supplied drawings or customer’s supplied

drawings within the delivery period with zero design errors. So that field failures are

eliminated.



Departmental structure:

Chart No: 5.7.1

5.7.3 Process for developing new product

1. Tender enquiry from marketing department.

2. Feasibility study.

3. Order and specification

4. Design Plan.

5. Design input collection.

6. Review of design input.

7. Design output preparation.

8. Review of design output.

9. Verification.


General Manager

HOD

Asst .Manager

Staff


10. Issue of design report.

11. Prototyping.

12. Verification.

13. Validation of design.

14. Revalidation.

15. Design change control.

FLOW CHART OF DESIGN AND DEVELOPMENT

YES

NO


Start

Tender Enquiry from Marketing Department

Feasibility Study

Order & Specification

Review Customer Feedback

Design plan


Chart No: 5.7.2

5.7.4 The design and development department activities are

1. Collection of input.

2. Design Calculation

3. Design review

4. Preparation of drawings

5. Preparation of Material list.

6. Preparation of materials specification.

7. Preparation of acceptance criteria.

8. Design review. (Output).

9. Modification of review.


Collection & Review of Design Inputs

Preparation of Design output such as drawings TDS, BOM etc. . .

Review of designVerification

Planning Materials Production Quality Assurance

Prototype manufacturing Verification

Validation

Design Freezing

END


10. Issue of drawings, Technical Data Sheet, material list.

11. Prototype manufacturing.

12. Preparation of Quality Assurance Plan and Validation Plan.

13. Validation & Review of validation design.

14. Modification if required.

15. Offering of prototype for customer inspection.

5.8 QUALITY ASSURANCE DEPARTMENT

DEPARTMENT STRUCTURE


Staff

General Manager

Manager 2


Chart No: 5.8.1

5.8.1 Policy

Quality policy of Quality Assurance Department is to ensure the quality of

materials/components to the concerned areas for further processing.

5.8.2 Objectives

Materials offered along with Goods Received Notes s will be inspected within ten

days from

the date of receipt of goods Received Note.

Reducing the defective material retuning from production to 50% within

One year.

5.8.3 QAD Functions:

Incoming material inspection and analyze each and every inputs received.

In process inspection

Final inspection

Quality System Procedure for Control of Inspection/Measure/ Test Equipment

QSP for Calibration of Jigs /Fixtures/ Gauges/ Templates

Decide on error declarations period

Quality testing is done at QAD (Quality Assurance Department). Quality

testing is done at 3stages. They are:

(a) Incoming Material Inspection:



The test conducted in the QAD and they verify every incoming raw

material against there levant ISO specification. When the material fails to the

criteria, the whole lot of batch is rejected, however when it require the materials

urgently department will reject only the fault item. The activities include:

Acknowledgement Receipt of Goods received notes.

Verify GRN with drawing/P.O

Inspection of material and Record Data

Indicate status

Record non-conformity(QAD)

Return Goods received notes to the store

(b) In processing Materials Inspection:

In process inspection which is sometimes called stage inspection, aims at

detecting Nonconformity at the earlier stage of processing to avoid wasteful effort

on output that is going to be rejected. If the Non-conformity is detected at an early

stage, it may be possible to rectify the Non-confirming product and make adjustment

in the process, thus preventing further production of Non-confirming products. In

process Inspection assures the persons responsibility for next stage of manufacturing

process that they are receiving correct input materials.

This test is conducted by the QAD during the production. The

production department offers the materials at various hold points for verification.

Then QAD checks the products and maintains record of conformity. The activities

include:

Offering materials from production



Indicating inspection and test status

Maintain record of non-conformity

Analysis of defective materials returned from production.

(c) Final test:

A final test for the reliability is carried out by KEL, on all alternators and

regulatorsas per specification given by RITS and Indian standard alternators will

perform. Its intendedfunction verified for a specified period under certain

experimental conditions. Test status for using suitable identification system

identifies the product by making tag, stamping etc. no product shall be

dispatched until activities specified in quality plan or documented procedure has

been completed.

5.8.4 Quality Manual

The quality management system established maintains and documented in the

quality manual. It is developed as a policy manual to describe the quality management

system followed in the organization. The quality manual includes:

Quality policy

Objectives

Organization structure

Responsibilities

Authorities

Scope

Reference to procedures and process maps.

Sequence and interaction of the processes.



Policy of the company regarding each process or activity.

The quality manual is received and approved by the General Manager for correctness and

suitability to the organizational requirements.

5.8.5 QUALITY SYSTEM PROCEDURE FOR CONTROL OF DOCUMENT

Objective

To make available required documents at all centers of operations related to quality

systems, to follow and demonstrate conformity to the specified requirements

incorporating the latest revision.

Scope

All documents such as quality system manual, quality system procedures, quality plan

and quality assurance plan, acceptance criteria drawing, specification, work instructions

format, charts, material list and master list of document.

5.8.6 QUALITY SYSTEM PROCEDURE FOR CORRECTIVE ACTION

Objective

To establish and maintain a documented procedure for implementing corrective action to

eliminate the causes of existing non-conformities at all levels of quality system,

to prevent the recurrence of non-conformities.

Scope

All functional areas of organization wherever quality system is implemented.

Overall Responsibility



Committee for continual improvement

5.8.7QUALITY SYSTEM PROCEDURE FOR PREVENTIVE ACTION

Objective

To establish and maintain a documented procedure for implementing preventive

action to eliminate the causes of potential non-conformities at all levels of quality system

to prevent the occurrence of non-conformities.

Scope

All functional areas of organization wherever quality system is implemented.

Overall Responsibility

Committee for continual improvement

SWOT ANALYSIS

SWOT analysis is the process of analyzing the various strengths,

weaknesses, opportunities and threats of an organization or firm. This analysis is useful

to make awareness of the organization’s strength that is where the resources are useful to

the firm to the maximum for the firm. The analyzing of the weaknesses of the firm helps

the firm to analyze the firm to identify the areas where they have to improve.

Opportunities analyzing will help the firm to analyze the areas where the firm can

propitiate their business or make a boom to their product market. The threat analysis will

be useful to the firm as they can be careful in those threat areas. Thus the SWOT analysis

is a useful strategic tool for analyzing the business.



Chart No.6.1

1. Strengths

Good brand image.

Good customer relation.

ISO 9001:2000 certification.

After sales services at various metro cities.

Wide marketing network.

Efficient personnel administration that bridges the employer – employee

relation unconditionally.



Intensive training and development program for the employer and

employees that helps them to adopt to the changes in the technology and

environment.

Fully equipped to manufacture the alternators from the initial stage of the

raw materials without depending on the external sources.

2. Weaknesses

No ERP system.

Lack of computerization and information technology application.

Paper works for the internal correspondence is higher.

The premises or structure of the firm is not worth to give a first

impression that has to be the best for an outsider.

Lack of transportation facility.

Lack of sufficient and Effective Sales Promotion Activities.

Being a public sector company, lot of Political influence may affect

the smooth running of Organization.

Raw materials are not freely available.

Still using the old machinery.

Lack of Multi skilled Labors.

3. Opportunities

Globalization.

Can develop more potential market.



Largest Public Sector Company.

Development of Railways.

Increasing overseas market.

4. Threats

High competition from the competitors.

Increasing price of raw materials.

Depends only on major customer.(Indian Railways)

PORTER’S FIVE FORCE ANALYSIS

The model of pure competition implies that risk-adjusted rates of return

should be constant across firms and industries. However, numerous economic studie

s have affirmed that different industries can sustain different levels of profitability; part

of this difference is explained by industry structure.

Michael Porter provided a framework that models an industry as being

influenced by five forces. The strategic business manager seeking to develop an edge



over rival firm can use this model to better understand the industry context in which the

firm operates.

According to Michel porter the nature and degree of competition in an industry depends

on the 5 forces. The points of force are represented as follows:-

Diagram of Porter's 5 Forces

Chart No.6.2

1. Rivalry among current competitor increased because of

Aggressive sales promotion and the advertisement.

Cheap credit facility.

Cash discount and Trade Discount.

Relative Price.

Modernization.



Players have similar strategies.

Products are not much differentiated.

Low market growth rate.

Exit barriers are high.

2. Threat of substitutes

Diesel generation.

Arrival of electric trains.

The threat of substitutes is low by the factors like

Brand loyalty of customers.

Close customer relationship.

Switching cost for customers.

The relative price or performance of substitutes.

Current trends.

3. Bargaining power of suppliers

Availability of substitutes.

Large no of buyers.

The suppliers are fragment so this bargaining power is high.

The switching costs from one supplier to another are high.

Possible to suppliers integrating forward.



4. Bargaining power of buyer

Price sensitive customers.

High competition.

Quality Assurance.

Customers bargaining power are high under the following circumstance.

Concentration of buyer

Undifferentiated product

Railways are the main buyer of the company. KEL exports its product. Therefore the company is having local customers and international customers.

5. Threat of new entrance

H.M.T.D Chennai

Stone India Calcutta

Crompton Greaves ltd Chennai

Steasalite ltd

Press tech India

Unitee

The threat of new entrance to the KEL is low due to,

Insufficient capital requirement for the new venture.



The cost incurred for the product in its various stages may affect the entrance.

Economic of scale.

Product differentiat

FINDINGS

The major findings of the study are:-

1. The major customer of KEL Kundara is Indian Railways.

2. An outstanding product of the division is the Statodyne brushless alternators.

3. The company has a good brand image.

4. Their products are marketed through an All India Network.



5. Marketing and after sales services offices are situated in all the metro cities.

6. The communication channel in KEL is very good.

7. No advertisement activities are performed.

8. Workers are recruited through employment exchange, Kerala PSC and direct recruitment.

9. KEL follows three shifts systems.

10. It is an ISO 9001:2000 company.

11. Kundara unit is on the path of Modernization

12. KEL implements good number of welfare measures to the employees.

13. Emphasizing to Product quality than profit.

14. KEL follows time rate system of wages.

15. Good Employee-Employer relation is maintained in the Organization.

SUGGESTIONS

1. Strict internal auditing along with creative suggestions and close monitory system

. can make continual improvement.

2. Online marketing will help the company to increase their sales.

3. In the era of electric trains, company has to diversify its product range in order to

exist in the market.



4. Introduction of new concept would help the company to reduce the Production

and Maintenance cost.

5. Company should introduce modern management tools in the administration and

strategy formulation.

6. Company should revise the strategies by considering the long term market and

Economic conditions

7. Infra structure to be efficiently maintained and also properly arranged for

convenient working of the employees.

8. The management should conduct meeting with workers weekly or fortnightly to

know about the satisfaction with their working surroundings.

9. Multi skilled employees should be introduced to the organization for the effective

functioning.

CONCLUSION

KEL was established in 1947 in Kerala and is fully owned by state govt. of

Kerala. It is an ISO 9001:2000 certified company. It has been the major supplier of Brush

less alternators for the Indian Railways. It one of the biggest public sector companies in

Kerala. The organizational study in KEL, gave a brief idea about all functional areas of

management. Eight departments are functioning in KEL.All the departments are working

together for achieving their objective.KEL is one of the major public sector company in

the state. Major customer of KEL is Indian Railway. It is an ISO certified company.KEL



adopt modern technology for production and their products are marketed throughout all

India network. Its workforce includes 1250 persons which include 250 qualified and

well-trained professional engineers; KEL is one of the biggest public sector companies in

the State of Kerala with three branches all over the state. KEL came into the field of the

Alternator production by 1970’s .The company is tuned with modern technology.

Products are marketed through all India network marketing and after sales service offices

are located in all metropolitan cities. The major customer of the company is Indian

railways. Being a public sector company KEL has its own limitations. But when we

analyses the organization, through the efficiency of work and the brand name they have

created among their customers as well as competitors their work was more than that of a

private sector company. This is one of the factors that make the organization in the lime

Employees strength of KEL is nearly 400.Their main product is Brushless Alternators,

which is used for lighting and air-conditioning the rail coaches.KEL provides wide range

of facilities to their workers. Even though the company faces some problems in recent

years, the company is now in a profitable path.

BIBLIOGRAPHY

BOOKS

Kothari C.R , Research Methodology, 2e: wishwa prakashan, New Delhi,1990

Kotler Philp, Marketing Management Prentice- Hall of India Pvt, Ltd.,2002



JOURNALS

KEL Annual Report

Production Manual

WEBSITE

www.kel.co.in

APPENDIX

ABBREVIATION

1. KEL - Kerala Electrical and Allied Engineering Company Limited

2. USP - Unique Selling Proportion

3. DA - Dearness Allowance

4. DC - Direct Cost

5. HOD - Head of the department

6. VAT - Value Added Tax


http://www.kel.co.in/


7. KPSC - Kerala public Service Communication

8. GRN - Goods Received Notes

9. R& D - Research and Development

10. P/L - Profit and Loss account

11. FGTN - Finished Goods Transfer Notes

12. PR - Purchase Return

13. MKTG - Marketing

14. AS&S - After Sales &Service

15. AM - Assistant Manager

16. CH - Charge Hand

17. SW - Skilled Worker

18. USW - Unskilled Workers

19. SI - Security Inspector

20. JO - Junior Officer

21. QAD - Quality Assurance Department

22. AAO - Assistant Account Officer

23. FY - Foundry

24. P&A - Personal & Administration

25. D&D - Design & Development

26. F&A - Finance &Accounts

BALANCE SHEET OF 2012-11, 2011-10 & 2010-09

PaticularsNote No

As at 31st March 2012(Amt)

As at 31st March 2011(Amt)

A. Equity & Liabilities1.Share holders fund

a) Share capitalb) Reseve & surplus

c) Money received against share warrants

2. Share application money pending

12

_

_

871,480770(1,030,503,021)

_

(1159,022,251)_

871,480770(967,674,141)

_

(96,193,371)_



allotment3. Non-current liabilities

a) Long-term borrowingsb) Deferred tax liabilities

c) Other long-term liabilitiesd) Long-term provisions

4.Current Liabilitiesa) Short-term borrowing

b) Trade payablesc) Other current liabilitiesd) Short-term provisions

Total

B. Assets1. Non-current assets

a. Fixed assetsi. Tangible assets

ii. Intangible assetsiii. Capital work in progressiv. Intangible assets under

development

b. Non-current investmentc. Deferred tax asset

d. Long-term loans & advancese. Other non-current assets

3_45

6789

10

10A

11_12

13

90,288,844_

10,811,884109,852,026

210,952,754

43,281,823109,076,258374,358,9275,781,699

732,498,707

784,429,210

35,268,737_

35,067,444_

70336,181

55000_

19,367,748

648,271

90,407,200

80729,378_

12,748,519103,167,228

196,645,125

227,449,394171,264,967438,106,42435,161,307871,982,092

972,433,846

38,910,272_

35067444_

73,977,716

55000_

39,985,837

648,271

114,666,824

Schedule no

As on 31-3-2011(Rs)

As on 31-3-2010(Rs)

I. Source of funds1.Shareholders funda) Shareholders fund

b) Reserve and Surplus2.Loan Fund

a) Secured Loansb) Unsecured Loans

Total

II. Application of fund1.Fixed Assets

AB

CD

8714807701567828

158643943274889836

1306582377

7137807701567828

234886031314143151

1264377780



a) Gross Blockb) Depreciation

c) Net blockd) Capital work in progress

2.Investment3.Current asset, loans and advances

a) Inventoriesb) Sundry debtors

c) Cash and Bank balanced) Loans and Advances

Less: Current liability and provisionsa) Liabilitiesb) Provisions

Net Current Assets

P|L account

Total

E

F

GH

I

120384768814744963891027235067444

73977716

55000

1952112336061956061756160481019443

899987886

491942446144737748

263307692

969241969

1306582377

2955413682403239335521743535067444

90284879

50000

1838740184103330341606942572248640

682525117

37009269892550142

219882277

954160624

12643377780

Schedule no

As on 31-3-2010(Rs)

As on 31-3-2009(Rs)

III. Source of funds1.Shareholders fundc) Shareholders fund

d) Reserve and Surplus2.Loan Fund

c) Secured Loansd) Unsecured Loans

Total

IV. Application of fund

AB

CD

7137807701567828

234886031314143151

1264377780

7137807701567828

218805765300457751

1234612120



1.Fixed Assetse) Gross Blockf) Depreciation

g) Net blockh) Capital work in progress

2.Investment3.Current asset, loans and advances

e) Inventoriesf) Sundry debtors

g) Cash and Bank balanceh) Loans and Advances

Less: Current liability and provisionsc) Liabilitiesd) Provisions

Net Current Assets

P|L account

Total

E

F

GH

I

2955413682403239335521743535067444

90284879

50000

1838740184103330341606942572248640

682525117

37009269892550142

219882277

954160624

12643377780

266029893232780391332495026023791

902848879

50000

1973765543727124521391950448659362

632667872

34034865284669373

207649847

933424830

1234612120


KEL Report..

Documents

study organization study

organization executive

study primary data

truth of organization

primary data sources

role of primary data

important secondary

primary sources