OEN India organisational study report

O/E/N India Ltd.

INTRODUCTION

In the Indian electronics industry for over 35 years the name O/E/N India Ltd. has been

synonymous with precision, high quality electromechanical components like relays, switches,

trimming potentiometers and allied assemblies.

Since 1969, O/E/N has been market leaders for all products under its manufacturing range and

caters to market segments like industrial instrumentation & controls, automotives, strategic

electronics and high end consumer electronics with emphasis on quality.

The state of the art assembly and manufacturing facilities of O/E/N covering over 18000m2

spread over 2 suburbs of Cochin and 1 in Peenya in Bangaloru. O/E/N has their own captive tool

design center and well equipped tool room capable of producing high precision tools and

moulds. In-house preproduction pressed metal parts with allied annealing and plating, finishing

plants and moulding shops for moulded plastic parts.

The quality management system of the company is approved to ISO 9001 with automotive

production lines being approved to ISO/TS 16949. The environmental systems of the company

are approved to ISO 14001. Individual products are covered by approvals from defense or

telecom authorities or by UL, CSA or VDE.

R&D laboratory of O/E/N is recognized by the Department of science and technology,

Government of India, and is competent to develop high precision miniature, electromechanical

components and allied subsystems. R&D is geared to work on acquisition of technology as to

transfer technology top business partners.

One of the thrust areas of business is contract manufacturing. O/E/N has got plants identified

under Electronic Hardware Technology Park (EHTP) scheme for duty free inputs for exports.

There are several companies from outside India who utilize O/E/N’s expertise in manufacturing

to produce low cost high quality products.

BERCHMANS INSTITUTE OF MANAGEMENT STUDIES Page 1

O/E/N India Ltd.

Design of the study

Objective of the study

Textbooks, Journals, Libraries etc. can provide only limited amount of knowledge about the

activities inside an organization. In the modern world of improved knowledge and technology,

management students who have clamor for taking corporate jobs should be aware of various

functions within an organization. For getting detailed knowledge about such things, it is better to

have a close observation about such functions. An organizational study also provides hands on

experience to them. Books and classroom lectures give more emphasis to theoretical aspects of

management and concept development. But in the actual practice things may not be exactly the

same as theory. The process and activities in an organization depends on the products, size of

operation, competitiveness its organizational framework, and like. The present organization

study is undertaken with certain clear-cut objectives. They can be grouped as:

Primary objective

To acquire knowledge about the functions of various departments in O/E/N towards the

achievement of its organizational goals.

Secondary objective

To compare theoretical knowledge with actual practices.

To study functions of top, middle, lower levels of management in the day-to-day functioning of

the firm.

To study how various departments coordinate with each other.

To experience the organizational processes at various levels.


O/E/N India Ltd.

INDUSTRY PROFILE

National Profile

The Electronics Industry in India took off around 1965 with an orientation towards space and

defense technologies. This was rigidly controlled and initiated by the government. This was

followed by developments in consumer electronics mainly with transistor radios, Black & White

TV, Calculators and other audio products. Colour Televisions soon followed. In 1982-a

significant year in the history of television in India - the government allowed thousands of colour

TV sets to be imported into the country to coincide with the broadcast of Asian Games in New

Delhi. 1985 saw the advent of Computers and Telephone exchanges, which were succeeded by

Digital Exchanges in 1988. The period between 1984 and 1990 was the golden period for

electronics during which the industry witnessed continuous and rapid growth.

From 1991 onwards, there was first an economic crises triggered by the Gulf War which was

followed by political and economic uncertainties within the country. Pressure on the electronics

industry remained though growth and developments have continued with digitalization in all

sectors, and more recently the trend towards convergence of technologies.

After the software boom in mid 1990s India's focus shifted to software. While the hardware

sector was treated with indifference by successive governments. Moreover the steep fall in

custom tariffs made the hardware sector suddenly vulnerable to international competition. In

1997 the ITA agreement was signed at the WTO where India committed itself to total

elimination of all customs duties on IT hardware by 2005. In the subsequent years, a number of

companies turned sick and had to be closed down. At the same time companies like Moser Baer,

Samtel Colour, Celetronix etc. have made a mark globally.


O/E/N India Ltd.

Current Scenario

In recent years the electronic industry is growing at a brisk pace. It is currently worth $10 Billion

but according to estimates, has the potential to reach $ 40 billion by 2010^. The largest segment

is the consumer electronics segment. While the largest export segment is of components.

The electronic industry in India constitutes just 0.7 % of the global electronic industry. Hence it

is miniscule by international comparison. However the demand in the Indian market is growing

rapidly and investments are flowing in to augment manufacturing capacity. India however

remains a major importer of electronic materials, components and finished equipment amounting

to over US$12 Billion in 2005^. This is not a desirable situation and local manufacturing has to

keep pace with growing local demand.

The output of the Electronic Hardware Industry in India is worth $11.6 Billion ^ at present.

India is also an exporter of a vast range of electronic components and products for the following

segments -

Display technologies

Entertainment electronics

Optical Storage devices

Passive components

Electromechanical components

Telecom equipment

Transmission & Signaling equipment

Semiconductor designing

Electronic Manufacturing Services (EMS)

The growing Indian market for electronic products is over US$25 Billion and is growing

at about 30% per annum! At this rate it is projected to exceed US$ 70 Billion by 2010

and US$158 Billion^ by 2015. This growth has attracted global players to India and

leaders like Solectron, Flextronics, Jabil, Nokia, Elcoteq and many more have made large

investments to access the Indian market. In consumer electronics Korean companies such

as LG and Samsung have made commitments by establishing large manufacturing


O/E/N India Ltd.

facilities and now enjoy a significant share in the growing market for products such as

Televisions, CD/DVD Players, Audio equipment and other entertainment products.

The growth in telecom products demand has been breathtaking and India is adding 2

million mobile phone users every month! With telecom penetration of around 10%, this

growth is expected to continue at least over the next decade. Penetration levels in other

high growth products are equally and growth in demand for Computer/ IT products, auto

electronics, medical, industrial, as well as consumer electronics is equally brisk.

Combined with low penetration levels and the Indian economy growing at an impressive

7% per annum, the projection of a US$150 Billion^ + market is quite realistic and offers

an excellent opportunity to electronics players worldwide.

^From www.elcina.org


O/E/N India Ltd.


O/E/N India Ltd.

Company Profile

Established in 1968, O/E/N is the market leader for Electromechanical Components.

Manufacturing plants are located in the suburbs of Cochin and Bangaloru with over 18,000

square meters of factory space. They offer a comprehensive range of products with applications

in most segments of Electronic Industry including Communications, Automotive, Strategic

Industrial Controls, Instrumentation and Consumer Electronics. The quality management system

of the company is covered by ISO 9001: 2000 Certification.

Factory infrastructure include fabrication plant for pressed parts, plastic moulded parts,

electroplating facilities, Research & Development Laboratory, sophisticated Tool Room and

Quality Assurance & Test Labs. Apart from regular production, O/E/N offers facilities for

contract manufacturing and already exports considerable volumes.

“We are the customer link to the future. We help turn/transform customer concepts to product

applications. We create made to order products, to customer specifications. The hard earned

reputation for quality products & services has helped us enhance customer base. Clients choose

O/E/N and stay with us because we provide world class technical and reliable support. Customer

care and satisfaction is part and parcel of our work culture. We nurture continuous innovation,

team work, employee involvement and stay focused on customer needs. We have successfully

established customer loyalty by working towards establishing lesser gap between customer wants

and products/services we deliver. In fact, O/E/N is the virtual supplier of Electromechanical

Components.”-website of O/E/N


O/E/N India Ltd.

History of O/E/N

O/E/N India Ltd. was formed in 1968 as a joint venture with OAK Electro/Netics Corporation,

U.S.A under the leadership of founder M.D, Late Mr. K.A Mathew. At the inception, 45% of the

equity shares were held by OAK Industries Inc, U.S.A and 25% by Kerala State Industrial

Development Corporation and the balance primarily by the directors and their associates. The

abbreviation O/E/N was devised out of the name of the collaborator.

The OAK group was a pioneer in the field of professional grade rotary switches, keyboards, and

push button switches, miniature and power relays, miniature trimmer potentiometers, controls

and control systems serving many segments of electronic industries- appliances, manufacturing,

industrial, aerospace, military and other fields.

Until O/E/N India went into production, entire requirements of the country for these products

were being imported from the U.S and the U.K. The major customers for these products were

Indian PSUs like BHEL, HAL, ISRO, DRDO, HMT, etc.

The company started with OAK designs and eventually added new designs in due course. The

company reached its break even in 1970 and declared its first dividend in the year 1973. In 1980,

the company started a sister concern O/E/N Micro Systems to take up manufacturing of

computer peripherals and in 1984 O/E/N Connectors India Ltd. in collaboration with FCI

Connectors, France. By 1985, the company set its second manufacturing plant in Peenya,

Bangaloru.

Till 1990’s the company was enjoying a monopoly in the market with no competition from the

local businesses. However with the liberalization policy of the 90’s, the company was forced to

face severe competition from the global brands. It took some time for the company to react and

change itself from the slow pace culture generated by the monopolistic leadership to that of a

flexible innovation culture needed in the midst of a competitive market. The growth of the

company was dampened though losses were avoided.

Unable to change with the times, O/E/N Microsystems was forced to be closed after enviable

years of growth in the startup period and closed down in the year of 2001. The company was


O/E/N India Ltd.

subsequently merged to the parent company in 2003. FCI also increased its share in O/E/N

Connectors to 51% and then to 65% in 1996.

The company realizing the faults reinstated its position in the early 2000s entering into tie-ups

and technological transfer agreements with major global players to bridge the technological gap.

The company had invested in enriching its core competency in electromechanical sub systems

development and had entered into contract manufacturing. The policy changes reflected more

emphasis on value addition and value creation.

(Note: The initial collaborator M/S OAK Electro/Netics Corporation was subsequently renamed

as OAK industries Inc. The brand OAK is no more and the equity held by OAK was bought back

by the company in a phased manner. )

Milestones of O/E/N

1968: Formation of O/E/N India Ltd. in collaboration with OAK Electro/Netics

Corporation, USA. Plant location at Mulunthurthy

1969: Commencement of production

1970: Company reaches Break Even

1973: Maiden dividend was declared

1974: Company achieves target of Rs. 10 million turnover

1976: Started in-house tool room

1977: Company starts R&D facility

1980: QA lab expanded with sophisticated tool equipments

1980: OEN Micro Systems; a sister concern started

1981: OEN India Connectors started in collaboration with FCI SA, France

1983: Second plant of O/E/N India was setup; located at Peenya

1993: Becomes an ISO 9002 Company; second such company in Kerala to achieve this

fete


O/E/N India Ltd.

1993: OEN India Connectors become FCI OEN Connectors after FCI increases stake in

company to 51 %

2001: ISO 9001-2001 company; first in Kerala

2001: After initial success and failure to achieve expected profits in subsequent years

OEN Micro Systems was closed and merged with the parent company, O/E/N India Ltd.

2003: O/E/N becomes first company in Kerala to be certified most sought after

international quality systems standard ISO/TS 16949-2002

2003: Company incorporates ERP

2004: ISO 14001:1996 & OHSAS 18001:1999 were achieved

2006: Achieves another target of Rs. 50 crores profit

2006: Achieves coveted ‘Ford Q1’ preferred quality status

Business Mission

Attain leadership position

Create wealth

Be the best in the business

Business Vision

Centre of technological excellence

Market leader in electromechanical components in country

Business Goals

To attain a respected presence in the industry

To build progressive relationships

To improve organisational strengths


O/E/N India Ltd.

To fine tune competitive advantage

To offer unique services

To undertake customizing of products

Quality Policy

“Quality is our technology to attain most preferred manufacturer and supplier status through

strong commitment and continued improvement”

Material Policy

“Manage the supply chain to ensure satisfaction of all our customers by supplying quality

products at optimum prices at the right time”

Social Obligations

O/E/N has formed a foundation which provides medical treatment for underprivileged in society.

It also provides scholarships to children of employees and maintenance charges for schools and

colleges

Major Customers

o American Power Conversion(APC)

o GE Medical Systems

o TATA

o M&M

o Johnson Lifts

o JCB India

o ITI Ltd


O/E/N India Ltd.

o Ford India Pvt. Ltd.

o Bharat Electronics Ltd.

o L&T Ltd.

o ABB India Ltd.

o Hyundai

Other Major players in the Industry

o Electrical Associates

o Indian Electro Trade

o Invented Electro Systems Pvt. Ltd.

o Minitek

o Ramesh Electronics

o Power Max

o Allied Controls Inc.

o American Relays Inc.

Products Profile

Industrial Relays

Series 31 Enclosed, Plug in

Series 31 10 A Enclosed Relay

Series 31 6 A Open Relay

Series 32 2 Pole 20 A Metal Can Relay

Series 51 10 A Indicator Relay

Series 33 Industrial Relay



Telecommunication/Signal Relays


O/E/N India Ltd.

Cradle Relays

Series 36 1A Sensitive Relay

Series 77 1A Telecom Relay

Series 67 3/5/7A, Versapack Relay

Signal Relays

Series 34 Flat Pack Relay

Series 42 Pigmy Relay

Series 52 DIP Reed Relay

Series 56 Miniature Relay

Hermetically sealed relay

Series 30 Crystal Can Relay

Power Relays

Series 57 2/6 A Miniature PCB Relay

Series 58 10/16A Sealed PCB Relay

Series 59 10/16A Miniature PCB Relay

Series 61 5A Sensitive PCB Relay

Series 62 25A PCB Relay

Series 63 25A Spaded Terminal Relay

Series 81 PCB Relay

Series - 68 Miniature Power Relay

Automotive Relays

Series 35 Medium Power PCB Relay

Series 35 Heavy Duty PCB Relay

Series 53 35/70 A Power Relay

Series 73 20 A Sealed Relay

Series 74 20/30 A 1C Relay

Series 76 Mini PCB Relay

Series 78 Power Relay


O/E/N India Ltd.

Rotary Switches

Series 11 (AM) Switches

Series 12 (J/JC) Switches

Series 13 (OM) Switches

Series 14 (AML) Lever Switch

Series 15(HM) Switches

Series 16 (LORLIN CK)Switches

Other Switches

Series 22 Snap Action Micro Switch

Series 25 Rocker Type DIP Switch

Series 27 Slide and Piano Type DIP Switch

Series 44 Potentiometers


Board of Directors

Managing Director

Executive VP

GM Finance GM Eng. Services CGM Eng. Resources CGM Technical Sr. GM MKTG

AGMR&D

AGMHRD

Sr. ManagerProcess

Eng.

AGMMFG

AGMTools,

Fabrication and plating

AGMCust. Care

AGMMKTG

O/E/N India Ltd.

Organizational Chart


O/E/N India Ltd.

Organization Set Up

O/E/N India Ltd is a public limited company headed by Managing Director, Smt. Pamela Anna

Mathew

Board of Directors

Pamela Anna Mathew (MD)

Venu Nellar

Sarah Mathew

Mathew K Mathai

Babu Paul D

P K Kurien

Sunela Sarah Thomas

Registered Office

O/E/N India Ltd.

Vytilla

P.B No. 1952

Cochin-682019, Kerala, India

Bankers

Centurion Bank of Punjab

Bank of India


O/E/N India Ltd.

Employee Strength of O/E/N India Ltd.

Mulunthurthy Vytilla Peenya

Executives 126 19 9

Non-executives 409 17 176

Worker/Trainees 5 13

Apprentices 409 26

Total 949 36 224

Grand Total 1209

Quality System Certification

ISO/TS 16949:2002

ISO/TS 9001:2000

ISO 14001:2004

OHSAS 18001:1999

FORD Q1 Preferred Quality Status


Senior Manager

Assistant Manager

Senior Accounts Officer

Cost and Accounts Staff

O/E/N India Ltd.

Finance Department

Departmental Structure

Finance department is the life blood of the business. So in any organization the most important

department is Finance Department. Without this department no organization can work smoothly.

O/E/N also has an efficient department for Accounts and Finance. Finance department is

concerned with planning and controlling of the firm’s financial resources.

The important objectives of the finance department include:

Preparation of corporate plans and budgets.

Financial planning cost control and ensuring uniform and correct observation of

financial disciplines of the company

Monitoring the progress of budget achievements


O/E/N India Ltd.

Providing accounting services to all levels ensuring updating of systems procedures

for the same.

Advising management on funds utilization and its implementation.

Vetting of all investment proposals, certain of new assets, new posts etc. From the

point of financial feasibility

Evolve an audit manual

The finance department performs various functions very effectively .the main functions of

the department include:

To collect all sums due to the company in time as per sales, orders etc

To make timely payments to creditors, suppliers, contractors, employees,

Government statutory bodies, service providers etc

Timely dispersant of salary/wages/perks to employees as per agreement, MOU etc

To assist all types of audit work.

To prepare MIS as required by the management

To complete all Budget works.

To manage cash proper to maintain liquidity

To assist all departments in providing financial administration of all transactions.

To make proper entries in books of accounts and extracts reports like Trial

balance, P&L A/c , Balance Sheet on a time bound basis

Significant Accounting Polices:


O/E/N India Ltd.

Every organization has its own accounting policies. O/E/N also has its own accounting policies.

The following by the company:

a. Fixed Assets

Fixed Assets are started at cost of acquisition or construction less

depreciation. All costs relating to the acquisition and installation of fixed

assets are capitalized. Assets and liabilities are consistently being recorded

at historical costs of the company and therefore they are not adjusted to

reflect the change in value in the purchasing power of money

b. Investment

All investments are valued at cost.

c. Inventories

Raw materials ,materials in progress , and stores and spares are

valued at the cost on weighted average method

Finished goods are valued at cost

Goods in transit are valued at cost

d. Sales

Sales are recognized upon delivery of products and are recorded inclusive

of excise duty but are net of trade discount, sales tax return.

e. Depreciation

Depreciation on fixed assets has been provided as per the rates prescribed

in scheduled XIV of the Companies Act of 1956. Under written down

value at any method depreciation on additions and deletions of fixed assets

is calculated on prorate basis

f. Retirement benefits

Gratuity liability is provided on the basis on the company rules prevailing

from time to time. The gratuity fund created to the company has been


O/E/N India Ltd.

approved by the income tax authorities. The net assets enable the fund to

be fully discharged by the company’s obligations in respect of gratuity,

payment of the employees etc.

g. Scraps

Accounting of scraps is done at the time of sales. In finance department,

several sections such as salary/wages, provident fund, loans, over time

allowances, dearness allowances, etc each section is handled by one

person or two

h. Accounting policies

The financial statements are prepared under the historical cost convention

on an accrual basis and in accordance with the mandatory accounting

standards issued by the ICA and relevant provisions of the Companies

Act, 1956.

i. Excise duty

Excise duty has been accounted on the basis of both payments made in

respect of goods cleared as made by provisions made for finished goods

lying in the factory warehouse

j. Research and Development

Capital expenditure on Research and Development is treated as addition to

fixed assets and included in the respective heads under fixed assets.

Revenue expenditure on research and development are charged to profit

and loss account.

k. Proposed Dividend

Dividend proposed by the directors is provided for in the books of account

pending approval at the AGM

l. Contingent Liabilities


O/E/N India Ltd.

Contingent liabilities are not provided for, but disclosed in Notes on

Accounts forming part of accounts

m. Deferred Taxation

Deferred tax asset has been determined taking into account the timing

difference in respect of depreciation and terminal benefits and is

recognized in the profit and loss account

n. Export Incentives

Export incentives in the form of Credit earned under Duty Entitlement

Pass Book Scheme is treated as income in the year of export at the

estimated realizable value/actual credit earned on export during the year.

O/E/N has consistently made profits over the many years of its functioning in spite of

unfavorable conditions. Sales during 2006-07 registered a growth of 33% over the previous year

of 47.12 crores.

Working capital management

O/E/N conducts its financial dealings with Bank of India & Centurion Bank of Punjab. The

banks can realize assets of the company in case payment is not made on time. Term loans have

been availed by the company from the banks. Salaries of the employees are given through bank

accounts of employees.

Share Capital Structure:

Authorized share capital: 10,000,000 equity shares of Rs.10 each.

Issued, subscribed and paid up capital: 50, 99,260 shares of Rs. 10 each fully paid up.

Equity shares

Borrowings from the two above said banks

Fixed deposits


O/E/N India Ltd.

Investments:

O/E/N held 91905 fully paid up equity shares of FCI OEN Connectors ltd. Promoted by O/E/N

India Ltd. In 1981. The company has since sold above said shares @ Rs. 700/share to M/s FCI

SA, France. It currently holds 7200 equity shares of face value Rs. 10 in Bank of India Ltd. and

2001 equity shares of face value Rs. 10 each in OEN Electronics Pvt. Ltd. and 20000 equity

shares of face value Rs. 10 in Kerala Environ Infrastructure Ltd.

Turnover for the last ten years:

Year Rs. In Crores

1997-98 22.14

1998-99 21.05

1999-00 26.15

2000-01 30.82

2001-02 31.07

2002-03 35.70

2003-04 37.74

2004-05 39.05

2005-06 46.85

2006-07 55.65

Profit before Interest & Taxes (PBIT) over the years:

Year Rs. In Crores

1997-98 31.39

1998-99 27.53

1999-00 41.89

2000-01 45.87

2001-02 49.09

2002-03 79.05


O/E/N India Ltd.

2003-04 65.94

2004-05 66.53

2005-06 56.96

2006-07 81.78

Dividend

The dividend paid for the equity shares was 10% for the last ten years. The company has paid

Rs.5099260 as dividends in the year 2006-07.

Earnings per Share (EPS) over the years:

Year Rs./share

1997-98 2.22

1998-99 2.01

1999-00 3.37

2000-01 5.57

2001-02 3.78

2002-03 7.43

2003-04 5.54

2004-05 6.89

2005-06 4.92

2006-07 6.05

Exports and inland sales over the years:

YearSales In crores

Exports Imports

1997-98 2.60 23.06

1998-99 1.05 23.53

1999-00 7.28 25.42

2000-01 1.30 34.20


O/E/N India Ltd.

2001-02 4.42 30.70

2002-03 3.53 36.41

2003-04 5.45 36.77

2004-05 5.85 38.94

2005-06 8.59 43.70

2006-07 7.94 54.75

Net Worth of the company over the years:

Year Rs. in millions

1997-98 142.957

1998-99 147.888

1999-00 159.601

2000-01 183.987

2001-02 160.959

2002-03 172.173

2003-04 194.197

2004-05 216.162

2005-06 235.443

2006-07 260.336

Sources of funds as for the year 2006-07 in crores:

Paid up capital: Rs. 50993

Reserves and surplus: Rs. 209344

Secured loans: Rs. 99846

Unsecured loans: Rs. 31952

Deferred tax liability: Rs. 21419


O/E/N India Ltd.

Borrowings:

A term loan of Rs. 4.85 crores has been availed from Bank of India has been repaid to the extent

of Rs. 0.43 crores during 2006-07. The balance outstanding in the above term loan as on 31 st

march 07 is Rs. 3.074 crores

Reserves & Surplus:

Out of the profit made in 2006-07 an amount of Rs. 2.40 crores has been transferred to General

Reserve Account. Together with this, the balance as on 31.03.07 stood at Rs. 20.934 crores.

Year

Profit In crores

Gross

Profit

Net

Profit

1997-98 3.13 1.21

1998-99 2.75 1.09

1999-00 4.18 1.83

2000-01 4.58 3.04

2001-02 4.90 2.06

2002-03 7.90 3.78

2003-04 6.59 2.82

2004-05 6.65 3.51

2005-06 5.69 2.51

2006-07 8.17 3.08

Ratio Analysis

Current Ratio: Current ratio= Current assets/Current liabilities


Executives

GM Engineering Services

Technical operator- maintenance

Technical operator- Electrical maintenance

Technical operator- Electronic maintenance

O/E/N India Ltd.

The ratio for the year 06-07 is 2.587 while for the previous year it was 2.585. This shows the

company’s short term solvency, i.e.; the ability of the company to meet its short term loans. The

ratio provides a margin of safety for the creditors. It is an index of the firm’s financial stability.

Net Profit Ratio: Also called the net profit to sales or net profit margin ratio, it measures the

profit per rupee of sales.

Net Profit ratio = Net Profit/Sales*100

The ratio for the year 06-07 is 5.55 while for the previous year it was 5.36. As is evident from

the analysis a slight increase in the ratio has occurred which shows better profitability than the

previous year. The usefulness of the ratio is for proprietors. It is an index of efficiency and

profitability of the business.

Engineering Service Department


The engineering service department is responsible for the monitoring of the overall mechanical,

electric and electronic failures of the company. Maintenance in this department is majorly

classified into electric, electronic and mechanical maintenance.


O/E/N India Ltd.

This department has direct relationship with all other departments of O/E/N. the major duties

include:

Break down maintenance

Predictive maintenance

Preventive maintenance

Assure continuous power supply to all departments

Alternate power generation on power failure

Water availability

Waste water treatment

Document submission to pollution control board

Research and Development Department



CGM Engineering. Resources

AGM R&D

Asst. Manager R&D Asst. Manager Document control

Executive, Design & Development

Executive, Design & Development

Designers Executive, Product

Operators

O/E/N India Ltd.

Research and development (R&D) department is mainly involved with the design and

development and the betterment of existing products. Thus, the major objective of R&D is to

develop quality products based on ‘cutting-edge’ technology. The company R&D facility

operates over a wide range of electronic research and applications. The facility is a self contained

centre with well equipped laboratories and multi disciplinary team of professional design

engineers.

The R&D department is mainly concerned with designing three types of products:


O/E/N India Ltd.

a. Products provided by the customer according to their specifications

b. Existing products available in the market not

c. Existing products with additional features

The major phases of new product development are:

1. Planning and defining program or project: This stage is the initial stage in the long

process of R&D. The initial stage is concerned with identifying what kind of product is to

be made and it is feasibility in creation (financial, conceptual, and process).

2. Product design and development: In this stage, the department usually uses the PRO-E

software to design the finished product. Along with this the product and the tools are also

designed. The manufacturing of the tools also take place in this stage. A review on the

progress of the process is done bringing to an end the second phase of the NPD process.

3. Process design and development: In this phase the process sequence, labor

characteristics, room characteristics, etc. are identified and developed.

4. Product and process validation: The validation and testing of the products made are

conducted in this phase along with the final designing of the product. The design made up

in this phase goes into the pre-production run in the fifth stage. The relay values, dropout

volts, withstand, life, ampere, etc. are tested and validated to the benchmark. A review is

conducted after this phase.

5. Feedback, assessment and corrective action: A preproduction run for 20,000 to 30,000

units are conducted. After this regular production is done. For the first three months the

R&D team along with production team would be constantly monitoring the production

process and the mistakes are taken care immediately without any delay.

The average time taken for a new product to be designed and developed is six months.

The products developed in-house are:

1. S-22 Micro Switch

2. S-24 Toggle Switch

3. S-25 Dip Switch

4. S-65 Micro Switch

5. S-87 Telephone Keypad(white)


O/E/N India Ltd.

6. S-88 Telephone Keypad(black)

7. R-26 PCB mountable industry relay

8. R-29 General purpose relay


10. R-33 Power relay

11. R-34 Flat packet relay

12. R-35 Heavy duty auto relay

13. AR-35 Automotive auto relay

14. R-36 Industrial relay

15. R-38 10 Amp. Relay

16. R-40 Automotive miniature dual relay


18. R-52 Reed Relay

19. R-53 PT Auto power relay

20. R-53 Auto power relay

21. R-56 Miniature dip relay

22. R-57 PCB Mountable Industrial relay

23. R-58 PCB Mountable Industrial relay

24. R-61 Miniature power relay

25. R-62 Power relay

26. R-63 Spaded power relay cradle

27. R-67 Mechanical Latch relay

28. R-68 PCB Mountable industrial relay

29. R-69-40A Power relay

30. R-71-80A Power relay

31. R-73 Automotive Power relay



34. R-78 Automotive relay




O/E/N India Ltd.

37. R-82 Solenoid

38. R-91 Fan Regulator

39. R-93 Automotive relay

40. 98-Collimator

41. Series 99-Carrier panel

The company after recognizing the importance of R&D has further invested in development

of new products. Recognition by the department of Science & Technology, Government of

India has been further extended up to March 2010. Apart from adding of a few customized

products, the contribution from new products during the last few years has not been

satisfactory. The company incurred capital expenditure of Rs. 4.32 crores for new tools, new

equipments for existing product lines, R&D and new products in the year 2006-07.

General Services Department



General Manager

Assistant GM

Executives

Staff

O/E/N India Ltd.

The general services department is primarily concerned with the stocking and dispatching of

products systematically. Functions of this department include:

o Storage of the finished products

o Packing

o Dispatch - Domestic and Exports

o Sales service order processing and dispatch

o Accounting of central excise duty

Following a written order from the general service department and a printed copy of the sales

order, the packing and shipping section collects goods from the finished goods section, packs it

and weighs it. After this an executive of the general service department comes to the disposal

section and does the final labeling. All due forms like bill of entry, freight charges, excise duties,

postal charges are cleared by the department. Domestic dispatches are mainly done by courier

services like First Flight, Blue Dart, etc.

Production Planning Department



Asst. General Manager (Production Planning)

Deputy CE (Production Planning)

Skilled Assistant (Production Planning)

Planning Assistant (Production Planning)

O/E/N India Ltd.

This department is mainly concerned with the achievement of daily and monthly targets and

allocation of production losses. This wing also integrates production activities and works closely

with marketing department.

Objectives:

Ensure assembly line availability

Fabrication and plating production programming to meet the required delivery schedule

Procedure:

Order controls issued by marketing department with required documents, if any, are

received through materials after authorisation


O/E/N India Ltd.

Production copy of order controls after authorisation is sent to manufacturing units of

Electrogiri, Peenya and R&D respectively

Work orders are issued by Planning for ERP products

Based on draft programs received from marketing, monthly production program will be

finalized in consultation with Materials and Manufacturing departments

P1,P2,P3 priorities are divided and production program copies are sent to Manufacturing

and Marketing departments

A monthly report on production program is given to the M.D after finalization

For parts received from outside (purchased parts) process orders are raised and sent thru

Production Planning department and Quality Assurance (QA) is done for furthur

processing in Fabrication/ Plating shop. Production Planning department will arrange

with the concerned department for furthur processing of parts according to urgency

A list of priorities is given to plating shop daily for guidance

Stores

A subsection of the Production Planning department, the store, as the name suggests, is the

place where the materials are stored. Materials purchased when approved by QA is sent to

the relevant stores for storage

Objectives:

To reduce inventory

To reduce material cost

To reduce production hold up

The store could be divided into three namely:

1. Raw Materials store: Stores all heavy metals and rods, most necessary for fabrication and

plating. It is in proximity to the fabrication and plating shop. Whenever materials are


O/E/N India Ltd.

issued they are recorded in manual register as well as in the computer. Each lot of

material contains the accepted card tag. Whenever materials near their reorder quantity ,it

is immediately informed to the Production Planning which in turn informs the Purchase

department

The bin card, maintained by the store keeper follows a standardized code. Each cubicle is

marked with a distinct raw material code and description as well. For example, PB 223-

0020-2100 indicates bronze strip of 20 mm thickness and 21 mm width. Similarly all

materials are identified with a distinct eleven digit code.

2. Piece Parts store: Here, various vendor supplied parts as well as other components like

bobbin pins, etc. required for the assembly line are stored. It also stores silver, used in

plating shop. The components for each relay are stored in cubicles marked with distinct

code. It also contains a weighing machine for checking the gross weight of the materials

brought in before storing them. Through ERP system, they are able to know the required

issue quantity to be procured to the assembly line for scheduled production

3. Finished Products store: In this store that comprises of the final packaging section also,

all the finished goods are taken for the assembly line and store. This storage is much like

that of the piece parts store.

Here, the goods, before final packaging is weighed and the gross mass is weighed once

again after final packing over the packed bulk the product code, date, gross weight, net

weight and customer code are labeled. A separate section is kept aside for the outer

packages, cartoons, etc.

Process Engineering Department



General Manager

Senior Manager

Engineers

Mechanical Engineering Electrical Engineering

Operators Operators

O/E/N India Ltd.

Working in O/E/N from 1995, the department helps others especially the assembly unit by

providing automated machines and technology integration.

Objectives of automation are:

Reducing labor fatigue and time

Prevention of scrap

Improving upon quality

An automation process in progress, based on the request of a prestigious customer, Hyundai, is

the manufacturing of the series 73 relay used by the customer. A trial run has been going on for

the past one year in order to check any problems regarding assembly of parts. The main

processes that are performed here are:

Pin insertion

Coil winding

Soldering

Resistance testing


O/E/N India Ltd.

While doing the trial run, an observation sheet is maintained by the supervisor that contains the

following data:

Starting time

Damages found

Stoppage time

Total machine hours

After trial ruin is conducted for each day, operations are stopped and executives from QA and

Process engineering are called in along with the supervisors, to rectify damages. This may

require changes in equipment and process and this is taken care off.

Enterprise Resource Planning (ERP)

All the departments are equipped with a computer with internet connectivity. Executives are

trained in using computers for report formation and e-mail communication. The company has a

website: www.oenindia.com, through which customers can view product catalogues and send

enquires. ERP is a subsection of the process engineering department. The ERP package used by

the company was offered by PeopleSoft in 2003. ERP is a system that integrates all functional

departments to work with common database and aids to plan effective utilization of resources.

ERP imparts traceability into the system. The various reasons that prompted the company for

ERP are:

Previously used system was working on UNIX and FOXBASE, which was

technologically obsolete and unable to meet the IT requirements of the company

Information integrity

Reduce data redundancy

Induce traceability and user accountability

Adopt an common standard with state of the art technology

Need for common data base


O/E/N India Ltd.

Modules implemented in ERP are:

Personnel and Payroll Information System(PDIS)

Store Inventory and Purchase System(SIPS)

Maintenance Management System(MMS)

Integrated Cost and Finance System(ICFS)

Attendance Information System(AIS)

Even though the ERP has been implemented, it has been observed that many operations have

a parallel data entry mainly in the store and in the assembly store

Quality Assurance Department (QA)



GM QA & Manufacturing

Senior Manager QA

Chief Engineer QA

Executive (Final Inspection)

Executive (Incoming Inspection)

Executive (lab)

Inspector Inspector Technician

O/E/N India Ltd.

Quality products and services to the customers is the primary task but the ultimate aim is to offer

customers improving products and services. The QA department is involved in inspection of

parts, incoming materials and financial products and also in maintenance of quality records. QA

lab facilities are used by other companies too underlining the quality and standards kept by the

company in maintaining its QA department. Major functions of this department are given below:


O/E/N India Ltd.

Incoming Inspection: Inspection of first sample is done by incoming inspection

executive after receiving reports along with samples. Inspection of vendor supplied parts

is done according to specifications. Criterion for incoming inspection is that if five items

randomly taken are qualified then the entire lot is approved and if three items are rejected

the entire lot is rejected. Following processes are done in incoming inspection

Inspection of raw material

Inspection done during fabrication of parts, samples are tested on an interval of

one hour

Inspection of in-house processed parts

Inspection of packing boxes, mould tray

Product specification testing

Parts after plating and processing

Customer supplied parts are tested

Finished Product Inspection: This process is done to ensure and certify that the required

quality is maintained for finished products. Finished products are tested by checking

random samples offered by product inspectors by subjectual appropriate routine life tests

as per work instruction for ensuring product reliability and performance against relevant

specifications at regular intervals.

`QA Lab Tests:

1. Electrical Life

2. Mechanical Life

3. Continuous Energisation at Elevated temperatures

4. Rotational Life

5. Burn In

6. Solder ability

7. Robustness of Terminations

8. Impact-Bump

9. Vibrations

10. Temperature Cycling


O/E/N India Ltd.

11. Climatic Cycling

12. Resistance to Soldering heat

13. Resistance to solvents

14. Damp Heat Test

15. Corrosive Atmosphere Test

16. Temperature Change of Resistance

17. Scaling(gross leak)

18. Scaling(immersion)

19. Scaling(MSLD)

20. Temperature(Dry heat)

21. Damp Heat(Cyclic)

Some of the equipments used for testing:

1) Dry Heat Chamber

2) Solder Bath

3) Multi Meter

4) Multi Vibrator

5) Dimmer Stats

6) Temperature Probe

7) Bump Test Monitor

8) Cold Chamber

9) High Volt Tester

10) Humidity Chamber

11) Damp Heat Cyclic Chamber

12) Environmental Chamber. –65 to +180o C

13) Altitude Chamber, Altitude up to 70,000 feet.

14) Vibration Machine, 5 to 5000 Hz Max 25 mm displacement.

15) Mass spectrometer Leak Detector, Helium detector,

16) Sensitivity 6 x 10-11 cc/sec

17) Humidity Chamber: 1) Programmable, -10 to +93o C. 98%RH

2) Steady State 40oC. 90-95% RH


O/E/N India Ltd.

18) Salt Spray Chamber

19) X-Ray Plating Thickness Tester.

20) Bump Tester, Peak Acceleration 40+/- 4g, Drop height 25mm.

Visual defects to be checked for products coming into QA:

i. Damages like blur, etc.

ii. Tool marks

iii. Slug marks

iv. Tracks

v. Plating peel-off

vi. Discolouration of parts

vii. Finger prints(in case of copper plated products)

viii. Contact springs

ix. Scratches

x. Pit marks

xi. Dust

xii. Presence of oil/wax etc.

xiii. Presence of metallic and plastic dust

Inspection Modes:

Normal Inspection mode: This mode is carried out in early stages of quality inspection.

Normal to tightened Inspection mode: When two out of five or more consecutive lots of a part

gets rejected in normal inspection, there is a switch over to tightened inspection.

Tightened to Normal Inspection mode: When five consecutive lots of a part get accepted in

tightened inspection mode, normal inspection mode is resorted back.

Calibration Section


O/E/N India Ltd.

This section functions within the QA but performs a distinct function. In this section, chiefly,

tools and equipments used in assembly line and QA parts are checked or calibrated. Calibration

means testing the measuring equipment, their precision as well as their conformity. This helps to

check timely decadence and wear and tear of equipment used in product inspection. In the

calibration observation sheet which is tagged along with the tool, the observations are noted

down as “P” or “F” for pass or fail. A colour label is stuck on the equipment after calibration

signifying the following:

Green- O.K

Red- Out of Use

Yellow- Limited Use

In case of yellow, users are to use the equipment carefully and correction in measurement is

made manually. Equipment of various departments is sent for calibration and a copy of the

calibration observation sheet is sent to the concerned department along with the calibrated tool.

Materials Purchase Department



Assistant GM

Senior Manager

Assistant Manager

Executive Executive

Store assistant Office assistant Store assistant

O/E/N India Ltd.

The materials purchase department is an important department in O/E/N. The hectic procedures

concerning the purchase of materials, choosing suppliers of materials, etc are decided by this

department. Functions and procedures of the department include

i. Approval of new suppliers: New sources are identified through various inputs like

publications, ads, introductory letters, references through internet, through

correspondence, etc. A request for quotation is sent to new sources along with

specifications, drawings, samples, supplier evaluation forms, etc, where ever applicable.

On receipt of quotations and other details, offers are evaluated. If required, furthur

correspondence/negotiations/request for samples is made and new suppliers for ordering

are identified. Trial order is placed with new suppliers based on terms and conditions.

Trial order item on receipt are forwarded to QA for evaluation and inspection report is

forwarded to suppliers. Based on acceptance of trial batches, new suppliers are included

in “Approved Suppliers List”


O/E/N India Ltd.

ii. Supplier Monitoring: For suppliers, supplier performance is monitored based on the

following for automotive parts:

Quality 40%

Delivery 10%

Price 15%

Premium freight incidence 10%

Customer line description 10%

Quality issues for customers 10%

Documentation 5%

For suppliers of non-automotive parts supplier performance is monitored based on:

Quality 40%

Delivery 25%

Price 25%

Responsiveness 10%

Performance rating is done during April and September every year for suppliers made during the

previous six months. Based on rating suppliers are classified into five grades:

Grade A: Rating>=90

Grade B: Rating>=80 and <90

Grade C: Rating>=70 and <80

Grade D: Rating>=60 and <70

Grade E: Rating<60

Suppliers belonging to group E are removed from approved suppliers list. Suppliers are

reevaluated every three years based on their performance rating for previous three years. Those


O/E/N India Ltd.

who have not supplied for three consecutive years are discarded from approval list. Suppliers

removed are prequalified per procedure for approval of new suppliers.

In case of rejection of supplied items suppliers are informed along with inspection

report/Corrective and Preventive Action Report (CPAR) and asked to submit counter measures

and ensure implementation of measures depending on severity of problem. Suppliers are

instructed to present the counter measures for major problems in a meeting at O/E/N. Even after

counter measures if suppliers are rejected no furthur orders would be placed.

iii. Purchase of Materials: For raw materials and precious metal parts, suppliers are

instructed to send Material Test Certificate along with supplies which are forwarded to

QA on receipt.

iv. Receipt: Material s coming to receiving stores are moved to “for checking”

v. Storage areas are:

a. Piece parts store

b. Raw materials store

c. Consumable tools store

d. Tools and mould store

e. Air conditioned store

f. Precious material store

g. Metal scrap yard and waste material storage

Marketing Department


Senior General Manager

Field Manager Asst GM (MRKTG) Asst GM(Customer Care)

Field Engineers Executives Executives

Staff Staff Staff

O/E/N India Ltd.



O/E/N India Ltd.

Marketing office of O/E/N India Ltd is situated at Vytilla, Cochin. Usually orders are taken up to

the 25th of every month and orders coming after the 25 th are scheduled for the next month. The

minimum lead time for orders varies from six to eight weeks. There are seven regional offices

for O/E/N, they are:

Regional Sales Offices:

New Delhi

O/E/N India Limited

76, FIRST FLOOR (REAR SIDE)

SANT NAGAR, NEAR NEHRU PLACE

NEW DELHI - 110 065

Bangaloru

O/E/N India Limited

KE-204 & 205, SUNRISE CHAMBERS

ULSOOR ROAD

BANGALORU - 560 042

Chennai

O/E/N India Limited

E-3, SANGATH APARTMENTS,

M.G.R NAGAR

VELACHERRY

CHENNAI - 600 042

Pune

O/E/N India Limited

A1 / 9, KUSUM SOCIETY

HAREKRISHNA MANDIR ROAD

MODEL COLONY


O/E/N India Ltd.

PUNE - 411 016

Hyderabad

O/E/N India Limited

2nd FLOOR, PLOT NO. 85,

ROAD NO.3

TRIMURTHY HOUSING SOCIETY

MAHENDRA HILLS

SECUNDERABAD - 500 026

Market segmentation of O/E/N

Industrial instrumentation/Controls-30%

Defense-6%

Consumer Electronics-35%

Telecom-4%

Automotive-25%

Authorised Stockists

Bangaloru:

o Amar Radio Corporation

11/1 Thiglar Periyanna Lane

Silver Jubilee Park Road, Bangaloru – 560 002

Mumbai:

o Brisk Electro Sales Pvt. Ltd.,

394-A, Lamington Chambers

2nd Floor, Lamington Road, Mumbai – 400 004.


O/E/N India Ltd.

Secunderabad:

o Cosmos Electronics,

Room No.1, 2nd Floor,

Srinath Commercial Complex,

S.D. Road, Secunderabad –500 003.

Calcutta:

o Electronics Components & Systems,

32, Ezra Street, 418 Todi Corner,

Calcutta –700 001.

New Delhi:

o Indian Technological Products Pvt.Ltd.,

15 Dsidc, Sheme 1, Industrial Complex,

New Okhla Phase 11, New Delhi – 110 020.

o Kudamm Corporation

D 17, 2nd Floor, Kalkaji, Opp. Nehru Place Bus Terminal

New Delhi - 110 019

Chennai:

o Seshasayee Brothers Pvt. Ltd.,

5/1, Krishnamma Lane,

Nungambakkam, Chennai – 600 034


O/E/N India Ltd.

Dealers:

New Delhi

Chennai

Cochin

Coimbatore

Hyderabad

Trichy

Pune

Kolkata

Bangaloru

Jaipur

Lucknow

Mangalore

Vishakhapatnam

Jamshedpur

Functions of the marketing department are:

Sales

o Direct selling

o Through dealers

Sales promotion

o Participation in industrial exhibitions

o Sending catalogues, brochures, etc to companies directly

Ads

o Industrial directories

o Technical magazines

o Websites


O/E/N India Ltd.

Technical support

Agency work: O/E/N undertakes agency work for the following companies

o Bourns Inc. ,USA

o Otto Controls, USA

o Diptronics Inc, Taiwan

o Xiamen Hongfa, China

Exports

Customer services

Payment collection

Market planning: Target set for every year is 120% of sales made in the previous year.

The price of the product is based on creditability of the purchasing company as much as

quantity ordered. The sales forecast is based on past trends, seasonal expectations, as well

as projected sales figure of clients, in tandem with data received from regional offices.

This forecast is then passed to production planning department. Colour code used to

make forecasts based on which product line expansion or capacity planning is utilized.

Colour code is as follows:

Dark blue: production in trial

Red: new product

Light green: imported

Lavender: outsourced production

Brown: Peenya production

Black: established and mature products developed at Mulunthuruthy

Ensuring Credit Worthiness of Customers: Marketing determines credit worthiness of

customers based on past payment trends and sales turnover of customers. Usually it

ranges from 15-30 days. In case of prestigious clients, it is extended to 60-90 days. In

case of new clients there are different phases of credit collection. Usually an advance of

about 15% of actual price is demanded.

Market promotion/enquiry handling

Advertising

Cataloguing

Mailers


O/E/N India Ltd.

Personal visits

Customer relatives

Intelligence gathering

Receipt and review of enquiry

Sending quotations

Order processing

Receipt and review of order

Order control processing

Delivery note generation

Dispatch of materials

Payment collection

Credit Payment follow up and cash collection

Receiving and recording payments

After sales services

Reviewing customer complaints

Reviewing lack products in case of rectification

Analysis of customer complaint

Performa Chelan generation

Customer satisfaction evaluation

Questionnaire reviews

Sending questionnaires to customers

Collecting completed questionnaires

Data compilation

Analysis and interpretation

Presentation of reports and action plans

Reports to field staff on specific customer responses

After sales services


Deputy Manager

Asst Manager(non auto)

Asst Manager (auto) Asst Manager(switches)

Executives Executives Executives

Staff Staff Staff

Senior Manager

O/E/N India Ltd.

Manufacturing Department



O/E/N India Ltd.

Manufacturing is the main department in any organization and the major impetus of any

company also goes into this function of manufacturing. O/E/N has a manufacturing space of

18,000 m2 in three locations; Mulunthurthy, Vytilla in Kerala and Peenya in Karnataka. The

manufacturing department consists of

Tool room: O/E/N has a well equipped modern tool room with all facilities. The specialty

is in the design and manufacture of tools and moulds for electromechanical components.

Tool room is managed by a team of expert engineers in tool design and in manufacturing

a group of well trained tool room makers and mechanics, a well equipped press and

moulding shop attached to the tool room provide facility for providing the tool and

moulds. Tool room works in four wings:

o Tool design

o Machining

o Tool assembly

o Maintenance

The Tool Room is equipped with CAD facility and a machine shop having the following

special machines in addition to conventional machine tools.

o Charmilles Wire EDM

o Charmilles Spark EDM

o Wickman CNC Profile Grinder

o WMW Optical Profile Grinder

o WMW Jig Boring Machine

o Mikron Milling Machine

The Tool room can accept orders for design and manufacture of the following types of

tools and moulds, for fabrication of components to customers’ design.

Press Tools – Progressive, compound and Single operation tools

Injection Moulds

Compression moulds


O/E/N India Ltd.

Transfer moulds

Assembly Tools

Jigs & Fixtures

Fabrication Room: The main assembly is supported by comprehensive fabrication

facilities with power press for pressed piece parts, a plating plates that handles plating of

conventional as well as precious metals. This has three divisions

o Actual fabrication

o Electro plating

o Moulding shops

Assembly Room: This department is mainly related to the manufacturing and assembly of

relays, switches and potentiometers. This department works 24 hours in a day as three

shifts. Their main objective is to reduce process scrap, improve group index and achieve

programmed production.

Relays are differentiated based on materials used, temperature and pressure withstanding

ability, electrical parameters, type of moulding, etc. List of operations in manufacturing

relays are:

Coil terminal insertion and bending

Coil winding

Coil timing and cleaning

Coil terminal straightening

Core head correction

Coil, core yoke assembly, taking

Non/NC contact terminal signaling and cleaning

Moving spring bending

Moving terminal –R/C

Armature correction

Armature/retainer/base plate assembly

Cover printing

Calibration and cover insertion

Base plate and cover stacking

Scaling, hole checking/filling and terminal cleaning


O/E/N India Ltd.

Terminal cutting

Terminal timing and cleaning

Switches: O/E/N manufactured switches are mainly used by the Ministry of Defense. The

series 13 switches are exclusively created for a company in the U.K. Switches are

differentiated based on materials used, temperature and pressure withstanding ability,

electrical parameters, type of moulding, etc. The main processes in switch

manufacturing are:

Rotor blade trimming

Rotor blade splitting

Staking

Eyeleting

Shaft and star wheel assembly stacking

‘C’ washer cylindering

Ball and spring assembly

Final assembly

Mounting hardware assembly

Potentiometers: As per orders, assembly of potentiometers is undertaken. Therefore the

manufacturing of these are less compared to other products. This product is used in

electronic circuits for getting desired voltage drops. All the parts of the potentiometers

are imported

Procedures inside Assembly Room:

a) Information and scheduling system: This is to provide information on the

functioning and daily targets at the assembly room. There are mainly two types of

information boards inside the assembly room; manually written board and digital

information boards.


O/E/N India Ltd.

Diagrammatic representation of manually written board:

Programmed

Quantity

Daily

Target

Quantity

Achieved

Quantity

Cumulative

Target

Quantity

Cumulative

Achieved

Quantity

Process

Scrap

Percentage

Diagrammatic representation of digital information board:

Product Name

Monthly Target

Production to date

Today’s Target

Production up to last hour

Last hour production

b) Daily meeting at work place: A meeting between supervisor and the assembly

workers happens before each shift to discuss on previous day’s production. The

discussion may go up to ten minutes.

c) Integration with production planning department

d) Operation control procedures

Auxiliary Supportive Procedures Enabling Product Efficiency


O/E/N India Ltd.

1. Check Sheet

2. Daily maintenance check list

Neatness of work place

Machine condition

Felt condition

Tool status

Cavity cleanliness

Paper clamping of tools

Air pressure

Calibration status of measuring instruments

Proper safe guards

Equipment checking

3. Inter process transfer card

4. Process control measures

Contract Manufacturing

O/E/N undertakes Contract Manufacture of branded electronic and electromechanical

components to customer design and specifications.

o Value addition in the process.

o Expertise in made to order products.

o In built capability to make supply chain short.

o Low cost, trained & experienced labour force.

Machinery includes welding machines, winding machines, riveting machines, eyeleting

machines, air screw drivers, air presses, hydraulic presses, ovens, soldering stations, potting

stations, calibration stations etc...


O/E/N India Ltd.

The assembly shops supported by a fully fledged, well equipped Fabrication shop - High

speed presses, multi slide machines, automats, moulding machines etc. constitute a part of the

big list.

A well equipped Tool Room with special purpose machine to manufacture & maintain all

tools, moulds, jigs and fixtures required by the press and plastic shop.


O/E/N India Ltd.


AGM

Welfare Manager

Security officer HRD Office Canteen Contractor House Keeping First Aid

Drivers Watchmen

Workers Workers

O/E/N India Ltd.

Human Resources Department


Human resources are the asset of any organization. Therefore managing the human resources are

the most important functions of any organization. So it is essential for the organization to fix a


O/E/N India Ltd.

separate department for the management of human resources. O/E/N has an efficient HR

department, which is headed by chief general manager (ER). This department is mainly

responsible for personal functions of the company for resulting in timely action for maintaining

smooth industrial relations leading to employee’s morale and productivity. The personal

department renders all personal and establishment services to all persons.

Objectives of the HR department include:

Establishment of industrial relations, welfare, salaries and wages, recruitment etc.

To provide leadership for management of industrial relations and employees

welfare function of the company.

To provide basics for corporate strategies and polices for maintenance of

industrial peace and for work

For evolving system of prompt attention and redressal of employees grievance

and the prevention of the same.

Administration the different committees for employees participation

Evolve and update practices for checking incoming and outgoing of materials and

persons.

Implementing the standing orders pertaining in the company

Functions of the HR department could be broadly classified into:

Personnel administration

Employee relations and benefits

Personnel Administration contains:


O/E/N India Ltd.

Recruitment: The most important function of the personnel department is the

recruitment of the right person in the right place at the right time. It is the first

time process by which employment is provided to the organization by means

of adequate manpower resources. It is the positive process of searching for the

prospective employees and circulating them to apply for the jobs. The sources

of recruitment can be classified as follows:

Internal sources: Internal sources include personal already on the

payroll of an organization i.e. its present employees. Another method

in internal sources is by direct recruitment of employees.

External sources: The term external sources indicate the sources

outside the enterprise. The main sources are by external agencies and

Employment Exchanges. The outside sources include:

New entrants to the labour force

The unemployed with wide range of skills

Retired experienced person

Selection: Invite candidates for preliminary interview /tests through phone,

letter, etc. Based on interview rank candidates, shortlist and call for final

interview, check references, coordinate with departments and arrange date and

time of interviews/ tests

Appointment

Attendance and leave marking

Pay roll management

Increments/Promotions/Transfers


O/E/N India Ltd.

Training: Training is provided to all new employees who include non

executive, executive, skilled and unskilled, clerical and administrative staff.

Training is also provided to employees when the need arises from internal and

external sources, i.e. the trainers may be from inside or outside the company.

The basic policy of the company states that at least one

man-day/employee/year should be dedicated to training.

Women Welfare Cell

Trade Unions and Labour Relations

Employee Relations and Benefits contain:

Employee health and safety

Health and accident insurance

First aid

Collective bargaining

Negotiations

Union Relations

Employee Involvement

Canteen

Employee transportation

Benefits Administration

o Spouse Allowance

o 10/20/35 service year completion gifts

o Free coverage in health insurance for executives

o Double increments/Promotion based on performances

o Spouse allowances

o Children education

o Group health and personal accident insurance coverage


O/E/N India Ltd.

o O/E/N Executives Superannuation Fund

o O/E/N Employees Cooperative Credit Society

Medical Reimbursements

Merit rating

Value Addition

Change Management

Employee Education/Awareness

Project Work/Studies

Security

Joint Consultative Committees

o Canteen Committee

o Safety Committee

o House Loan Committee

o Women Complaint Committee

Employee Strength of O/E/N India Ltd.

Mulunthurthy Vytilla Peenya

Executives 126 19 9

Non-executives 409 17 176

Worker/Trainees 5 13

Apprentices 409 26

Total 949 36 224

Grand Total 1209

Daily Shifts at O/E/N

8.30 A.M -5 P.M General shift

7 A.M-3.30 P.M A shift

6 A.M- 2 P.M A1 shift


O/E/N India Ltd.

2 P.M-10 P.M B1 shift

3.30 P.M – 12 P.M B shift

12 P.M-7 A.M C shift

SWOT Analysis

Strengths

Brand Name

Market leader in domestic market

Cheap labour compared to global standards

Good employee-employer relation

Job security to employees

Quality products

Ideal location

Highly efficient management

Extensive data and knowledge on Indian market

Very low overall attrition rates

Weakness

Lack of innovative products

Highly functional departmental organization structure with limited horizontal integration

Lack of training

Outdated technology

Overdependence on import sources for raw materials

No lateral entry to induct skilled and specialists to top slots; only filled by promotions


O/E/N India Ltd.

Opportunities

O/E/N has potential to attract any major global player for a takeover or collaboration. The

synergy will help O/E/N to get wider global market reach in addition to changing market

dynamics

The next generation relays will be using solid state relay technology. O/E/N can

gradually enter into this market

O/E/N can increase scalability and production efficiency by introducing partial

automation in key production lines

Experience and expertise in core competency

Website renovation

Entering into newer and related industries

Employing more youth for a steady organisational change

Threats

Change in relay technology from electromechanical to solid state relays

Losing the leadership position due to lack of innovation and new products

Rapid change and obsolesce of technology

Drain in market share in sensitive segments with entry of cheap Chinese brands

Stiff competition from imported relays available in grey market

Steep rise in raw material costs leading to a vertical cost increase

Attrition among new comers

Focus on value addition


O/E/N India Ltd.

CONCLUSION

This report gives a detailed study of the organizational system and functioning of O/E/N India

Ltd. The report covers description about various departments of the company and their functions.

The materials purchase department deals with the storage of materials rights from the raw

materials to the finished products and invites quotation and based on the vendor ratings; get the

required quantity and quality of guaranteed materials. The production department is directly

responsible for achieving the target production. Engineering department deals with the

maintenance and calibration of equipments used in the production process. The finance

department deals with the payments and receipts where as the HR department maintains an

effective relationship between management and employees. The QA department ensures quality

in products and processes while the General Service and Process Engineering departments assist

the smooth running of the organization.

The labour welfare measures and job satisfaction among the employees are very good. Above all

O/E/N is managed by an efficient Board of Directors, which plans, organizes and controls all

activities in close co-operation with the other officials of the concern.

O/E/N continues to occupy an important place among the electronics manufacturing companies

in the country. With newer technology O/E/N can reduce cost of production and will be able to

regain its previous market position.


O/E/N India Ltd.

O/E/N has proved itself as a successful undertaking as its employees are performing effectively

and efficiently for the best of the organization. This training provided the trainee with very useful

first hand information about a manufacturing firm.

APPENDIX

Comparative Profit & Loss Account for the years ended 31.03.2006 & 31.03.2007

Schedules Year ended 31.03.2007 Year ended 31.03.2006

INCOME

Sales N 556536681 467853015

Other Income Or 20461539 21256776

Stock Differential P 2950475 (3964194)

TOTAL 579948695 485145597EXPENDITURE

Materials consumed Q 2770946712342122

87

Other expenditure R 216929779 195649790

Less: Capital Jobs Allocated

13550153 12391930

Purchase of trading goods

17695097 10710763

TOTAL 498169394 428180910

Profit before Depreciation and

Taxation81779301 569644687

Less: Depreciation 30600422 28258903

Profit before Depreciation 51178879 28705784

Less: Provision for taxation

Current tax 16600000 9000000

Deferred tax 32500000 1905000


O/E/N India Ltd.

Fringe Benefit tax 410000 1380000

Prior years 49609 8664222

Net Profit for the year

30869270 25085006

Add: Surplus carried forward from last

year2785203 2514629

TOTAL 33654473 27599635

APPROPRIATION:Proposed dividend 5099260 5099260

Corporate tax 866619 715172Transfer to general

revenue24000000 1900000

0Balance carried to

Balance Sheet3688594 2785203

Comparative Balance Sheets as on 31.03.2007 & 31.03.2006

I. Sources of FundsAs per

Schedule

31.3.2007 31.3.2006

1. Shareholders Fund

a) Capital A 50992600 50992600 b)Reserves and surplus

B 20934591 184440200

260336191 235432800 2. Loans and funds a)Secured loans

C 99846269 100328951

b)Unsecured loans

D 31952319 3847113

131798588 138800064 3..Defered tax liability 21419200 18169200

Total 413553979

392402064

II. Application of funds1. Fixed assets E

(a) Gross block 494856885

452543313


O/E/N India Ltd.

(b) Less deprecation

256960082

226164886

(c) Net block 237896803

225778427

(d) Capital work in progress

F 4181285 13789194

242078088 239567212. Investments G 1463060 12630603. Current assets,

loans & advances

(a)Inventories H 121675555

102520779

(b)Sundry debtors I 124212708

98571966

(c)Cash & bank balances

J 6709939 5274666

(d)Other current assets

K 4698263 5989881

(e)Loans & advances

L 20401181 34823320

277097586

247180612

Less: Current liabilities & Provisions

M

(a) Liabilities 55682324 44193319(b) Provisions 51402431 51415916

107084755

95609229

Net Current Assets

170012831 151571383

Total 413553979

392402064


O/E/N India Ltd.

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

0

10

20

30

40

50

60

22.14 21.0526.15

30.82 31.0735.7 37.74 39.05

46.85

55.65

Turnover

Rs. In Crores

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Profit In crores Gross Profit

3.13 2.75 4.18 4.58 4.9 7.9 6.59 6.65 5.69 8.17

Profit In crores Net Profit

1.21 1.09 1.83 3.04 2.06 3.78 2.82 3.51 2.51 3.08

0.5

2.5

4.5

6.5

8.5

Profits over the Years

Rs. in

cro

re

s


O/E/N India Ltd.

BIBLOGRAPHY

1. Kotler Philip. Marketing Management Millennium edition

New Delhi: Prentice-Hall of India Pvt.Ltd, 1998.

2. Panneerselvam .R Production and Operations Management

Second Edition New Delhi: Prentice-Hall of India Pvt.Ltd, 2005

3. Dessler Gary Human Resource Management 7th edition

New Delhi: Prentice-Hall of India Pvt.Ltd, 2000.

4. www.oenindia.com

5. www.elcina.org


OEN India organisational study report

Documents

oen india

government of india

outside india

study functions

organizational study

study objective

indian electronics industry

rd laboratory of oen