1 Anand Institute of Business Study Anand Institute of Business Studies (Managed by Shri Ramkrishna Seva Mandal) Anand: 388 001 2008-2009 SUMMER TRAINING (JUNE-JULY '2009) 2008-2009 A PROJECT REPORT ON INVENTORY MANAGEMENT AT KRISHAK BHARTI CO-OPERATIVE LIMITED SUBMITTED TO : SUBMITTED BY : Rahul N. Prajapati Anand Institute of Business Studies (Managed by Shri Ramkrishna Seva Mandal) Anand: 388 001 2008-2009 SUMMER TRAINING (JUNE-JULY '2009) 2008-2009
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1 Anand Institute of Business Study
Anand Institute of Business Studies (Managed by Shri Ramkrishna Seva Mandal) Anand: 388 001 2008-2009 SUMMER TRAINING (JUNE-JULY '2009) 2008-2009
A
PROJECT REPORT
ON
INVENTORY MANAGEMENT AT
KRISHAK BHARTI CO-OPERATIVE
LIMITED
SUBMITTED TO:
SUBMITTED BY: Rahul N. Prajapati
Anand Institute of Business Studies(Managed by Shri Ramkrishna Seva Mandal)
Anand: 388 0012008-2009
SUMMER TRAINING (JUNE-JULY '2009)2008-2009
PREFACE
This project is prepared during the vocational training under taken at “KRIBHCO”,
SURAT. On partial fulfillment of the degree in “Master of Electronic Business.”
Hence, this report is designed with the objective to gain practical knowledge and is
undertaken on a chemical fertilizer manufacturing industry. According to an old saying there
is a huge difference between to say and to do. To take theoretical knowledge is important but
it becomes more valuable when we apply it in the practice. So there is a huge gape between
theory and practice. So, for fulfilling this requirement, training in the KRIBHCO was very
practical exposure for us. This training provides golden opportunity for all students,
especially when the management student does not have perfect understanding of the working
of a unit.
Hence, this report is designed with the objective to gain practical knowledge & is
undertaken on a fertilizer manufacturing industry.
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Acknowledgement
Sharing our experience is one of the biggest honors, which every one cannot experience. To
share our experience at KRIBHCO as management student is a matter grate honor and pride.
We are grateful to KRIBHCO for letting us to do this project. We express our gratitude to
We are really thankful to employees of KRIBHCO who have been guiding us in this path
Step by step and have made our path really simple to get through .we will use this experience
through out our career and will make our future bright. So once again we thank all of them.
In regard to this programmed, we would like to acknowledge our gratitude and
Thanks to coordinator,
“Anand Institute of Business Studies,
Sardar Patel University”
for catering us the opportunity of training. We also forward our special thanks to our All
Faculty Member for guiding us in training Programme. The valuable suggestion of our
faculty members during the course our Project work and giving us inspiration to achieve our
goal. The shape that project has been taken is due to our faculty member’s help, judicious
guideline and encouragement.
And the most precious part of our life, our parents who have showered their love and support
which can be never repaid in any form but can be commemorated without them this
achievement could not have been achievement.
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Declaration
I the undersigned RAHUL N.PRAJAPATI this financial training report with
“KRISHAK BHARTI CO-OPERETIVE LTD” is the result of our study which carried
out during 1 June to 31 July, 2009 and has not been previously submitted to any
other university or institute for any other examination and for any other purpose by
any other person.
Place: SuratDate: 31/07/2009
4 Anand Institute of Business Study
EXECUTIVE SUMMARY
Today the significance of project work has greater importance in business world. Practical
knowledge is as important as theory so that one thing is said, “Practice makes a men Perfect “
I have made my project in “KRISHAK BHARTI CO-OPERETIVE LTD” which is basically
pharmaceutical company. I have made the report depicting the companies working
mechanism and the overview of its entire department. The companies mainly comprises of
following department:
- Production department
-Marketing department
-Finance department
-Human Resource Development
-Purchase & Store department
In the purview of Production department the process has been studied separately for 3
departments of the company (i.e) Bulk Packaging, Medium Packaging & Injection molding
Department, in production department we also describe the process of various products like
Ammonia, Urea, and Power plant. In order to understand the mechanism of Human Resource
department we took all relevant information of the functional field. The responses were
analyzed and suggestion was provided in order to make their entire working mechanism to
increase its efficiency considering the human perspective. In marketing department we study
the strategy which will be selected or adopted by KRIBHCO. In finance department I studied
capitalization, working capital management etc. In purchase & store department the activity
done by this department is covered under this report.
As a part of the project report a special topic was selected for studying and analyzing in detail
the entire working of the Company. I have done report on production planning & Control to
learn the entire production process of the company and basic operation of entire production
planning and control. The Process chart was used depicting the entire production process and
step-by-step planning of the process.
The topic of my project is Inventory Management. In next part of the project contain the data
regarding Inventory Management. In this the Process of Inventory Management means how
inventory should be maintain and the various techniques adopted by KRIBHCO for Inventory
management should be studied under it.
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INDEX
SR NO. SUBJECT PAGE NO.
1 PART 1: GENERAL INFORMATION ABOUT
VARIOUS DEPARTMENT
2 INTRODUCTION 08
3 GLOBAL SCENARIO OF FERTILIZER INDUSTRY 10
4 INTRODUCTION OF KRIBHCO 13
5 ORGANIZATIONAL CHART OF KRIBHCO 23
6 HUMAN RESOURCE DEPARTMENT 25
7 MARKETING DEPARTMENT 37
8 TRANSPORTATION DEPARTMENT 45
9 PRODUCTION DEPARTMENT 47
10 MATERIAL DEPARTMENT 52
11 PURCHASE DEPARTMENT 53
12 STORE DEPARTMENT 56
13 FINANCE DEPARTMENT 59
14 PART 2: INVENTORY MANAGEMENT
15 METHODOLOGY 66
16 INTRODUCTION OF INVENTORY MANAGEMENT 67
17 INVENTORY MANAGEMENT IN KRIBHCO 70
18 CLASSIFICATION OF INVENTORY
MANAGEMENT
82
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19 EOQ 86
20 COMPOSITION OF TOTAL INVENTORY 90
21 SUGGESTION 91
22 SWOT ANALYSIS 92
23 RECOMMENDATION 94
24 CONCLUSION 95
25 BIBLIOGRAPHY 96
7 Anand Institute of Business Study
India lives in villages” said Mahatma
Gandhi decades ago. It is true even today.
Like every developing economy, the economy
of India is also agro-based. Agriculture
accounts for nearly 1/4th of India's GDP and
more importantly, about 2/3rd of the country's
population is dependent on agriculture and
allied activities for their livelihood. As per
statistics nearly 175 lakh MT of fertilizer
nutrients are required every year in this country. The demand of fertilizers was so high
that India had to import almost 30% of its requirement from other countries.
Therefore, to achieve the economic growth, agriculture base of the country must be
strengthened. To attain this objective, agriculture practices have to be improved from
their traditional pattern to a higher technological track involving better irrigation and
use of better quality seeds, fertilizers, insecticides & pesticides. Therefore, chemical
fertilizers are key player in this process and fertilizer industries plays quite a major role
in increasing food production in the country and also helps to modernize the out look of
the common farmers and make them innovative and respective to the new technology
change.
A fertilizer is any material, organic, inorganic, natural or synthetic, that is
placed on or incorporated into the soil to supply plants with one or more of the
chemicals elements necessary for normal growth. Fertilizer is the material, which
supplies the chemicals elements required for plant growth. Primary nutrients like
nitrogen, phosphates and potassium (required for fertilizer land) are supplied through
chemical fertilizer. Fertilizer response studies have proved that one kg. of fertilizer
nutrient application can the food grain production by 8-10 kg.
Fertilizer production is of permanent importance for this country because
fertilizer increases agriculture productivity. One hand population increasing but on the
other the supply of land is totally fixed. So we have to produce more without any
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increase in arable land area. This can be done if productivity goes up. And fertilizer
plays a major role in productivity escalation.
As this is a vital commodity it is in the interest of nation that farmers get
fertilizers at reasonable rate and in adequate quantity. Looking to the poor economic
condition of Indian farmers Government of India framed fertilizer policy in 1977 based
on Maratha committee report. The purpose behind introducing this policy was to
supply fertilizer to resource poor at a price they could afford, so as to increase the
consumption of fertilizer, to increase food production, and ensure fair return to
fertilizer producers.
With this twin objective, Retention Price Scheme (RPS) for fertilizers came into
picture. In this scheme government has brought the fertilizer under the preview of
Essential Commodities Act (ECA) in which the retail price of fertilizer to the farmer is
notified by the Government of India from time to time. This retail price to the farmer is
uniform throughout the country and is subject to local taxes applicable under the
respective States.
Further under ECA, the government also operates a system of distribution
control in which the manufacturers including the handling agents for the imported
fertilizers are directed to sell specified quantities of fertilizers in given states/union
territories. While doing so, the logistics of fertilizer distribution including storage,
transportation, handling etc. are also suitably regulated conforming to overall supply
plans of the government to meet the requirement in all the parts of the Country.
Now manufacturers also should get reasonable rate of return as all incentive for
producing fertilizers. Manufacturers should get at least that much, which call enable
them to remain in the industry.
Government of India fixes the price of fertilizers in such a way that
manufacturer's cost of production including cost of marketing is covered and the
manufacturer gets a 12% post tax return on net worth of the unit at a pre-defined
capacity utilization. Norms are fixed for consumption of raw material, utilities, services,
capacity utilization, depreciation etc. The price so fixed is called Retention Price (RP).
This price is reviewed every three years.
In a nutshell fertilizers can not be sold in open markets and producing unit has
almost nil say in fixing fertilizer price. Then how to increase profits? By operating plant
efficiently only.
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3. GLOBAL SCENARIO OF FERTILIZER INDUSTRY
The United Nations projection indicate the world population has been increasing at very fast rate while the nature resource such as land remain the same so, to recover increasing demand for the food grain the productivity of the crop can be increased by using fertilizer.
Today 35% of the world fertilizer/production from developing countries. But
their consumption’s being 50% of the total global fertilizer consumption’s; the
developing countries are the net importer of the fertilizers. This is natural because they
are essential agro based economics. While Canada and U.S.A. are top exporters of
fertilizer in the developing countries. India and china are also develop/ping their
scenario in the world market.
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-:: INDIA SCENARIO ::-
By fiscal year 1995, the fertilizer consumption in India touched 13.56 million
tons. In the same year, the total supply was 10.43 Million tons. With that become the
third largest producer after U.S.A. and china. To bridge the demand and supply gap
India has to import necessary fertilizer.
-:: WORTH OF FERTILIZER INDUSTRY ::-
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1. Pro Green Revolution Period
2. Green Revolution Period
3. Post Green Revolution Period
● Pro Green Revolution :
The period is described in 1952-1953 era where increased growth of food grains
took place however this increased production in food grains took place due to increased
irrigation method. In this phase the land under agriculture was made more during this
period about 80%of the company’s population was involved in agriculture either
directly orindiretly.
● Green revolution Period :
During this phase government stated the programmer aimed at marking our
country self sufficient in food product this was the period between the year 1959-1960
this plan laid the emphasis on production of high yielding varieties. To make this plan a
success there was a high need to make sail fertile by providing it with nutrients like
phosphorus nitrogen and potassium.
● Post Green Revolution Period :
The words population along with Indian population has kept on growing at an
alarming rate the fertilizer companies all over India are trying to expand their scale of
operation in order to increase the production rate. The demand for fertilizer per year is
increasing. The current demand of fertilizer in India is 18 million tones.
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4. INTRODUCTION OF KRIBHCO
Krishak Bharti Co-operative Limited
“KRIBHCO” the world’s premier fertilizer producing co-operative has an
outstanding track record to its credit in all spheres of its activities. Since 17th April 1980
as a national level co-operative society promoted by Government of India authorized to
manufacturing and distribution of fertilizers. Chemical fertilizer and allied farm
imputes “KRIBHCO” imbibed the co-operative philosophy fulfilling its commitment to
strengthening and promoting the cause of agriculture development and co-operative
movements in the country.
Krishak Bharti co-operative limited popularly known as “KRIBHCO”
has been registered as national level co-operative society under the provision of the
multi-state co-operative societies act, 1984.
The”KRIBHCO” hazira unit is located around 15 kms, west of Surat and
lies on the north of river Tapti. An all weather road from Surat to hazira connects the
plant site with the city. The cannel belonging to irrigation department is running on the
plant site and is feeding water from ukai. A railway feeder line apporx. 55 kms. Long
has connected the site with Bombay –Ahmedabad main line.
KRIBHCO multiunit co-operative societies were promoted jointly by
IFFCO and the agricultural co-operative all over the country.
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KRIBHCO PLANT AT HAZIRA
Plant is based on Natural Gas from BOMBAY HIGH SOUTH BASSEIN. The
society massive Ammonia, Urea complex is situated at HAZIRA near SURAT in
GUJARAT.
KRIBHCO plant is one of the largest and most modern fertilizer compels in the co-
operative sector in the world. It has two phases on UREA plants consisting of two
streams of 1520 MTPP with an annual capacity to produce 14.52lakh.MT of urea
equipment to 6.68 lakhs MT interns of nutrient nitrogen.
KRIBHCO aims to fulfill the ever-growing fertilizer needs of the country. The
HAZIRA project with project zero date of 31st March, 1985. The estimated project cost
was Rs.957.71 crore However, the final project cost was Rs.885 crore resulting in hot
saving at Rs. 72.71 crore.
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MEMBERSHIP: -
A cooperative thrives on the trust of, its members. Membership of
“KRIBHCO” is open to government of India, national state and district and village
level cooperative society. At the initial stage, way back in June, 1981 the total
membership in ”KRIBHCO” was only 221 cooperative societies which rose
significantly to 6044 cooperative societies as on march 31,2008 as against 5790 as on
march 31 2007. Phenomenal progress made by the society becomes a testimony to
the ever-increasing membership over the years.
The total paid up share capital as on March 31, 2008 was rs.39, 354.15 lakh as
against rs.49, 170.72lakh in the previous year. During the current financial year, the
society has refunded share capital of rs.9700 lakh to “IFFCO” and government of
India respectively .the state –wise membership with share capital contribution as on
March 31, 2008 vis-à-vis march 31 2007.
MISSION: -
A) To contribute to agriculture &rural development in the regins.
B) Services to members of cooperatives society by selecting financing
C) Managing society desirable and commercial profitable investment
opportunity preferable at multiple locations.
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5188
56245732 5790
6044
460048005000520054005600580060006200
2003-04 2004-05 2005-06 2006-07 2007-08
Years
Kribhco Membership
VISION:-
They want to be a world class organization that represents the farmer
community and maximizes returns to them through specialization in agricultural
inputs and products and other diversified businesses that maximize
stakeholder value.
OBJECTIVES: -
a) To undertake the activities for he rural upliftment and agriculture development.
b) To promote economic interest of its members by undertaking manufacturing of
chemical fertilizer & allied product.
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In furtherance of these objectives “KRIBHCO” may undertake one or more of the
following activities: -
(I) To undertake production processing, manufacture, sale distribution, marketing,
import export and to otherwise deal in agriculture production requisites.
(II) To set up storage units for storing fertilizer and other goods by itself or in
collaboration with other agency.
(III) To act as warehousing agency under the warehousing act and own go downs or
hire go downs for the storage of fertilizers and other goods.
AWARDS: -
The excellence performance of the society has brought a number of laurels from various
organizations .The awards received during year were as follows: -
(I) National productivity council has awarded productivity award the society for
bio fertilizer product for the year 1999-2000, 2001-2002 in the year 2003-
2004.
(II) Hazira ammonia extension project (HAEP) rotating shield winner and
certificate for lowest disabling injury index in group-c industries.
(III) Sardar Vallabhbhai Patel Agriculture and Technical University, Meerut – All
India Farmers Fair And agro Industrial Exhibition – First Prize To Kribhco on
10-03-2005.
(IV) Kribhco has won first prize for Bio-Fertilizer Production, Marketing And
Promotion Award For the year 2003 And 2004 by National Productivity
Council (NPC). Award Has been given formal function held on 10 th
May,.2005 by Honble Minister For Agriculture Shri Shard Pawar Ji.
(V) Special Participation Award in Corporate Sector Event “ Vyapar 2005” Event
Organized By Southern Gujarat Chamber OF Commerce And Industries From
February 11 – 16, 2005, the theme of pavilion was “ Development OF Bio-
Technology In Kribhco
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KRIBHCO HAS WON ENTERPRISE EXCELLENCE AWARD
Managing Director Shri V.N. Rai is holding the Gold Plaque
KRIBHCO has won the Enterprise Excellence Award for the year 2003-2004 in thefertilizer sector from the Indian Institute of Industrial Engineering (IIIE) ,forfinancial and operational strength of the Society. The Award consisted of a gold plaque with certificate of Excellence was presented by Dr. T.S Vijayaraghavan, IAS (Retd), former secretary, Petroleum, Govt of India, at the 8th CEOs Conference at Kodaikanal.
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The Prime Minister Shri Ataal Bihari Vajpayee is presented a dividend cheque by the Managing Director, KRIBHCO Shri V.N Rai in New Delhi on september 12, 2003 (Friday).
HISTORY OF KRIBHCO: -
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Encourage with the successful operation of fertilizer plant of kalul, kandla and
phulpur in the co-operative Limited. (IFFCO) higher to the one and the only co-
operative in the fertilizer industry has promoted another co-operative namely
“KRIBHCO” Ltd to made the new giant plant of hazira.
MILE STONES: -
(I) Project zero Date : 31/03/1981
(II) Foundation stone laid by Smt. Indira Gandhi: 5/02/1982
(III) Project completion : 31/03/1985
(IV) Plan completion : 26/11/1985
(V) Commercial production : 1/3/1986
(VI)Percent capacity utilization : Urea 99%
Ammonia95%
(VII) Plant ready of production : January/September,1985
(VIII) Gas available by ONGC : PHASE 1 & PHASE 2
18-9-85 6-11-85
(IX) Trial production Ammonia : PHASE 1 & PHASE 2
14-11-85 30-11-85
Urea (stream 11/31) 26-11-85 13-12-85
Ammonia (stream 21/41) 31-12-85 01-12-85
(X) ISO certificate (I) KRIBHCO plant
ISO 9001-2000
(II) KRIBHCO plant
ISO 14001
(III) KRIBHCO Mktg office
ISO 9001-2000
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DEPARTMENT AND MANPOWERS AT “KRIBHCO”
Financing & Accounting 62
Personnel & administration 82
HRD 09
Security 101
Material 55
Medical 32
Mechanical 210
Transportation 29
Fire safety 45
Purchase & store 56
Instrument 90
Electrical & civil 101
Laboratory 54
Production (HEAP Plant) 440
Total 1379
Contract labor 1600
Total manpower 2979
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PERFORMANCE HIGHLIGHT:-
RECORDS 2007-08
Highest monthly urea dispatches from Plant Oct. 06 since inception
Earlier Record (Dec. 87)
1.98 Lacs MT1.94 Lacs MT
Highest monthly Urea Sales July 06 since inceptionEarlier Records (June 87)
4.11 Lacs MT3.84 Lacs MT
Highest Total Annual Urea Sale 2006-07 since inception
Earlier Record (2005-06)
34.6 Lacs MT28.2 Lacs MT
Highest Daily Bio Fertilizer Production from Hazira Unit ( 01-14.11.2006)
Earlier Record
3000 Kg2660 Kg
Highest Total Monthly Bio Fertilizer Production Oct 06 Since Inception
Earlier Record (Oct 06)
97.5 MT94.4 MT
Highest Monthly Bio Fertilizer Production from Hazira Unit Nov 06 since Inception
Earlier Period
80.1 MT71.8 MT
Highest Annual Bio-Fertilizer Sales 2006-07Earlier Record (2006-07)
784.4 MT714.4 MT
Highest Annual Total Bio Fertilizers Dispatches 2006-07
Earlier Record (2006-07)
843.3 MT716.4 MT
Highest Annual Bio-Fertilizers dispatch from Hazira Unit 2006-07
Earlier Record (2006-07)
638.8 MT491.4 MT
Highest Sales ProductivityEarlier Record (2006-07)
5388 MT/ EMP4315 MT/ EMP
5. ORGANIZATIONAL CHART OF KRIBHCO
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QUALITY POLICY
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GM (P)
GM(Material)
GM(F&A)
GM (P&A)
GM (Tech)
CM (MIS)
GM(Mai.)
JGM (P)
JGM(Material)
JGM(F&A)
JGM (P&A)
JGM (Tech)
JGM(Maintain)
CM (P)
CM(Material)
CM(F&A)
CM (P&A)
CM (Tech)
CM(Maintain)
Government of India
Ministry of Agriculture
Department of fertilizer & Chemical
Chairman
Board of Directors
Managing Director
Operational Director
Ammonia
Urea
Power
PHP
Transportation
Purchase
Store
Process
Project
Laboratory
F&S
Civil
Instrument
Mechanic
Electrical
Management of KRIBHCO, Hazira plant is committed to operate and maintain its fertilizer
manufacturing complex through quality assurance, environmental protection and to the
satisfaction of customers.
KRIBHCO, Hazira plant shall achieve this quality policy through following objectives:
1. Continually upgrading technology to improve plant efficiency & reliability.
2. Maintaining & improving the safety & environmental performance.
3. Improving the skills & knowledge of personnel.
4. Continuously improving the quality Management system.
FUTURE PLANS
A joint venture fertilizer project in Oman:
Society has invested US$ 80 million as equity in Oman India Fertilizer plant
which has achieved commercial production on 14th July 2005. The Project has annual
capacity of 16.52 lakhs MT Urea and 2.50 lakhs MT surplus ammonia and has been built at a
cost of US$ 969 million. Marketing of Urea produced by this plant has since been
commenced by the society.
Hazira Phase-II
Society is in the process of setting up a state of the art mega size ammonia plant of
capacity of 1850 MTDP and urea plant of capacity of 3250 MTDP at existing fertilizer
complex at Hazira. Existing infrastructure facilities will be utilized resulting in saving of cost.
Plant will be based on natural gas and we have energy consumption.
Gujarat state energy generation limited (GSEG)
Society has diversified to power sector and has invested Rs. 48.75 crores being 30%
equity in Gujarat State Energy Generation Limited, a joint venture company promoted by
government of Gujarat, GSEG is operating 156 MW Power Plant at Mora, District Surat.
.KRIBHCO’s Hazira plant is also going to be expanded. The society is also exploring
the possibilities to set up a 200 MW liquid fuel based power project at Jhunjhunu, Rajasthan.
Society has deposited a development security of Rs.25 lakhs with Rajasthan State Electricity
Board (RSEB). Minister of power has given No Objection Certificate (NOC).
6. HUMAN RESOURCE MANAGEMENT
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Human Resource Management is that part of management which is concerned
with people at work & their relationship within the organization. The term Human Resource
Management refers to the management of personnel in the organization of any company to
achieve the predetermined goals. The duty of the personnel manager is to look after the
personnel department and various functions of the personnel like recruitment, selection,
promotion, transfer, etc.
In KRIBHCO, there is Personnel & Administration Department to carryout the
functions of Human Resource Management. Here, the term Personnel & Administrations
refers to the administration of personnel.
The objective of this department is as below:
(1) To ensure satisfaction to the workers so that they are freely ready to work.
(2) To attain maximum individual development.
(3) To improve efficiency of the human resources.
Realizing that employees are its greatest assets, KRIBHCO from its very inception
has been striving to build up a sound & transparent organizational culture to inclusive to
sense of belonging among its employees.
Personnel & Administration department mainly deal with:
Manpower Need – Why? Where? How? And When?
Recruitment & Establishment functions
Performance Appraisal
Welfare & other services
Loans & Claims
Human Resource Department
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‘KRIBHCO’ considers its human resources as a the greatest assets. It invests
time and money to develop its employees through various HRD mechanisms. Regular in-
house training programs sponsorship to outside training institution, brainstorming, problem
solving workshops etc. are conducted for employees at all level.
Structure:-
Chief Manager (N.Bhatta)
Senior Manager (D.K Mandal)
Manager (H.D Desai)
Deputy Manager (P.T Solanki)
Sr. Assistant Manager (S.N Purabia)
Assistant Manager (M.N Patel)
Junior Manager (K.S Mohanan)
Average Employee Turnover rate--- NIL
Average Employee Absenteeism rate---NIL
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HR Planning:-
HR planning includes estimation of how many qualified people are necessary to
carry out the assigned activities, how many people will be available and what if anything,
must be done to ensure that personnel supply equals personnel demand at appropriate point in
future. It is the foundation for all personnel functions.
In KRIBHCO, forecast of manpower is based on expected promotion and
retirement. In KRIBHCO, “bottom-up” approach is used i.e. manager or department head
submit their departmental proposal to Establishment Section, which is forwarded to corporate
office.
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Training and DevelopmentFeedback and counselingEducational opportunitiesRewards and encouragement
Induction training on the job training refresher courses
Process simulator informationGallery conference room audio – visual aids
Orientation programIn house training
Evaluation and feedback
Technical libraryLecture hallauditorium
Facilities
Mechanism
Methodology
HRD
Performance appraisal
Proper communication
In house journals
Objectives of HRD at KRIBHCO:-
Maximize department contribution to KRIBHCO.
To increase KRIBHCO` s foundation through increasing in employees contribution.
Provide an opening of self- expression and self-development in congruence with
organization.
Provide need-based training to all employees of the organization.
Plan the right working condition for employee’s progress.
Plan and design appropriate training strategies to build competencies of employees
Ensure growth and development for all.
Personnel & Administration:-
Personnel Department is that part of management, which is concerned with
people at work 7 their relationship within the organization. The term personnel
management refers to the management of personnel in the organization of any company
to achieve the predetermined goals. The duty of the personnel manager is to look after the
personnel department and various functions of the personnel like recruitment, selection,
promotion, transfer, etc.
As there is so much important of the heart in the human being so much as
there is also importance of person in any organization. Person working in the organization
are considered as the blood and heart of the organization. The success of unit mainly
depends upon the personnel function in any organization. As in the organization there
must be maintain good relation between personnel of different department. Personnel
manager plays very important role between employers and employees.
The objective of this department is as below:
1) To ensure satisfaction to the workers so that they are freely ready to work.
2) To attain maximum individual development.
3) To improve efficiency of the human resources.
Personnel & Administration department is divided into two major departments.
1) Personnel Department
2) Administration Department
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The personnel department is further sub divided into four sub-division:
a) Recruitment and Establishment cell
b) Tine office and Wage & Salary Administration cell
c) Industrial Relations cell
d) Contract cell
The Administration Department look after the following matters:
a) Canteen
b) Transportation
c) Township
d) Horticulture
e) Guest house/ temple/ garden maintenance etc
Grade system in KRIBHCO plant site HAZIRA
A Managing Director
B Director [Operations/ Marketing/ finance]
B1 Executive Director
C senior general manager/ General Manager
D Joint general manager / Chief Manager
E senior manager/ CMO
F Manager
F1 Deputy Manager/ senior M.O.
G Sr. Assistant manager/ Sr. area manager/ Sr. engineer/ foreman
G1 Assistant manager/ Engineer/ Assistant foreman
G2 Assistant Engineer/ Assistant manager
H Joint manager/ P.S.
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Function of Personnel & Administration Department
TIME OFFICE : Time office Management, Attendance & Leave, Wage Administration, Leaves travel Concession, Marketing Bus Coupons.
: Procurement & Maintenance of office furniture & Equipment, Physical Verification of Furniture.
BUDGET & INTERNAL AUDIT, VIGILANCE MATTERS
: Preparation of Budget and matters related to it, Internal Audit coordination & replies, Vigilance matters.
RURAL DVELOPMENT PUBLIC RELATIPON
: RURAL Development, Release of Advertisement & Processing of Bills, Publishing of KRIBHCO DARPAN/ Kribhco Today Publicity/ Liaison with Press, Photography & Videography, Periodicals & Newspapers.
HOUSE KEEPING & DESPATCH
: House keeping and upkeep of Administrative Block, Dispatch Section, Courier Service,Attendant Service to various Sections.
INDUSTRIAL RELATIONS
: Industrial Relation, Union & Association matters, Collective Bargaining, Management of Industrial canteen, Review of Personnel policies, Wage Revision matters, Incentive payment, Sport & Games, Cooperative Stores, Unit Level Class, Management of Class, Management of Schools, Welfare matters.
IMPLEMENTATION OF HINDI
: Office Language Implementation
GUEST HOUSE LIVERIES LOCAL PURCHSE LAN PRINTING OF STATIONERY
: Management of Guest House-I & GH-II, training Hostel, Procurement of liveries, Gift & complimentary, local Purchase, Department Imp rest, Printing of Stationary & Visiting Cards etc.
ESTABLISHMENT : Township Horticulture, Maintenance of Public Building, House-keeping of Township House, Community Hall, Ladies Club, Celebration of Festivals, Township House & Shop Allotment, Hospital & security Administration, Fish culture, Horticulture of township
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CONTRACT CELLLEGAL CELL
: Compliance of labour laws & contract Labour [R&A] Act, Verification & Witnessing Disbursement of Wages to Contract Labour, Matters related to HAIA, SUDA& Payment Legal Cases, Disciplinary matters.
PF & TERMINAL BENEFITS JMC
: DBF & terminal Benefits, Joint Management Council, Post Retirement Medical Assistance, Pf trust, Suggestion Scheme.
COMPUTERIZATION – NODAL OFFOCER
: LAN Implementation in P&A Department, computerization & other matters related to Computer.
HAEP ADMINISTRATION
: Day to Day Administration matters of HAEP
HOSPITAL ADMINISTRATION
: Day to Day Administration matters of Hospital
ESTABHLISHMENT
Organizations are dynamic, organic ongoing systems consisting of many
individual. A successful management focuses on the individual and then attempts to relate the
individual to the group and different groups to the organization. Individuals join organization
to fulfill their goal and aspirations within the framework of the organization. It is one of the
major functions of management to convert the goals and aspirations of the individuals into
the goals of the organization.
KRIBHCO in the formative stages inherited miles and practices from IFFCO.
Subsequently, need was felt to streamline and standardized the existing practices and to
envolve R&P guidelines for KRIBHCO.
In line with the above, R&P guideline were formed and revised from time to
time. There are only guideline for the management and do not contain the detailed procedure
to implement the same.
Salient feature of the guidelines are given below:
General:-
Vacant position in organization chart shall not automatically be treated as
operative to be filled by recruitment or promotion. The positions shown in the chart are
estimated, keeping in view current and future requirement and are to be operated only when it
becomes necessary to operate them with the approval of competent authority.
Recruitment from outside agencies shall be made when , in the opinion of the
management suitable persons are not available within the organization.
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INCREMENT
Employees shall be entitled to annual increment in accordance with the
increment rates specified in various pay scales.
The first increment shall be awarded to KRIBHCO employees on initial
appointment subject to satisfactory completion of probation period in the following manner:
FOR EMPLOYEES JOINING BETWEEN DATE OF INCREMENT
a) 1st January to 30th June 1st January
b) 1st July to 31st December 1st July
In case of promotion to the next higher grade, the date of increment of an employee
arrived at on his initial appointment in KRIBHCO shall remain unaltered throughout his
service career in KRIBHCO unless otherwise specifically ordered by the Management to take
care of the anomaly in pay fixation and Leave Without Pay/ Absence from Duty.
If an employee remain absent from duty on account of leave Without Pay,
Unauthorized Absence, the date of award of next annual increment shall be postponed by the
corresponding period for which he remained on LWP/ unauthorized absence.
PROMOTION
Promotion means an improvement in pay, prestige, position and
responsibilities of an employee within organization.
In KRIBHCO, promotion is based on seniority cum merit basis. The
Establishment Section prepares the Eligibility List of employees for promotion twice in a
year on May 0 and November o1 of each year. Up to H/ H1 grade, promotion are done at
plant level by constituting committee which conducts personal interview to assess the
suitability of the candidate.
1. Preparation of list of eligible employees for promotion as per R&B Guidelines.
2. Annual Appraisal report of eligible employees to be got filled by the concerned
officers.
3. Competent Authority’s approval for constitution of the Department Promotion.
4. Bio-data of the eligible for constitution of the Department promotion Committee.
5. Bio-data of the eligible employees to be prepared for the DPC.
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6. Communication to the Chairman of the committee for fixing the date of DPC.
Communication to the employees for attending the DPC.
7. Making physical arrangements to the interview.
8. Preparation of selection proceedings.
9. Approval of the competent authority to be obtained for the selection proceedings.
10. Vigilance clearance to be obtained giving the promotion order.
11. Promotion ordered.
For promotion of G grade and above, Establishment Section put before the
Committee the Bio-data of eligible employee, annual appraisal report with rating and
signature of each member of the committee and forwards it to Managing Directors’ approval.
WAGE & SALARY ADMINISTRATION
Wage & Salary Administration refers to the establishment and implementation
of sound policies and practices of employee compensation. Generally, the remuneration paid
to the workers known as wage while the payment made to office staff known as salary.
Wage is the remuneration paid for service of labour in production, skilled and
unskilled person or employer, worker technicians. Salary refers to the monthly paid to
clerical administrative and professional employees.
A sound wage & salary administration tries to achieve these objectives:
a) For employees:
Employees are paid according to requirement of their job. This eliminates
inequalities.
The changes of favoritism are greatly minimized.
Employee’s morale & motivation are increased because wage program can be
explained & based upon facts.
b) To Employer:
A wage & salary Administration reduces the likelihood of friction & grievance
over wage inequities.
It enhances an employee’s morale & motivation because adequate and fairly
administered wage are basic to his wants and needs.
It attracts qualified employees ensuring an adequate payment for all the jobs.
The information about employees, presentation and absence provided by the
tine keeping system is directly linked with computer section. Then after pay slip is preferred
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with the Master-Date. Finally after all additions and deductions, pay is paid to the employees.
The productivity linked bonus and incentive schemes also introduced by the KRIBHCO. The
employees of KRIBHCO have been paid bonus linked with productivity i.e. annual capacity
utilization of the plant and materials.
In KRIBHCO calculation of wage and salary is done by establishment section
in Finance & Account Department. In this section, wage and salary is calculated on
computers. It is the responsibility of personnel department which has to handle wages and
salary distribution together with account department.
Salary are payable on the last but on working day of every month. In this
organization for the wage and salary administration, first prepared the Master-Date under the
personnel department. In this Master-Date there are various column like grade, employee