A REPORT ON ORGANISATION STUDY AT THE ALUMINIUM INDUSTRIES LTD (ALIND) MANNAR Submitted to mahatma Gandhi University Uni versity in partial fulfilment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION Subm Submi tted B y ATHIRA SUSEELAN Reg. No : 71160
Unde nder the G uid ui dance Of Mr.P.B. Vijayan
Prof. Shibu Itty Mathew
(Company guide)
(Faculty guide)
DEPARTMENT OF MANAGEMENT STUDIES MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES THIRUVALLA
2016
DECLARATION
I hereby declared that this report titled “organisation study at ALUMINIUM INDUSTRIES SWITCHGEAR DIVISION, MANNAR” has been prepared by me during the academic year 2016-17, under the guidance of Prof. Shibu Itty, Department of Management Studies, MACFAST, Thiruvalla.
I also hereby declare that this project report has not been submitted to any other university or institute for the award of any degree and diploma.
Place: Thiruvalla Date : 30-4-2016
ATHIRA SUSEELAN
ACKNOWLEDGEMENT
It is great pleasure to express my heartily thanks, to those who helped to make this study successful. First of all I am grateful to God Almighty for helping me to complete the project successfully.
I am thankful to my project guide Prof. Shibu Itty Mathew, who provided all support and let me through the whole project at ALUMINIUM INDUSTRIES LTD.
I take this opportunity to express my respectful, sincere thanks and gratitude to Fr. Pradeep Vazhatharmalayil, principal, MAR ATHANASIOUS COLLEGE FOR ADVANCED STUDIES, Thiruvalla, Kerala who provided the wonderful atmosphere, which enabled to do this project work.
I solemnly express our earnest and sincere thanks to Prof. Ligo Koshy, Head of the department, MBA, too.
I proudly utilize the privilege to express my thanks for all the help and support given by the company authorities and all the individuals in ALUMINIUM INDUSTRIES LTD. Who helped me in preparing the project to its final completion.
LIST OF FIGURES Figure no
Description
Page no.
1
Organisational structure
19
2
Structure of personnel Department
35
3
Plant layout
36
4
Structure of production Department
41
5
Machine shop chart
42
6
Structure of marketing sales department
48
7
Structure of purchase and sales department
51
8
Working Capital Cycle
56
9
Finance Department Chart
57
CONTENTS Page no
CHAPTER 1. INTRODUCTION
1-4
1.1
Scope of the study
2
1.2
Significance of the study
2
1.3
Objectives of the study
2
1.4
Methodology
3
1.5
Reference period
1.6
Limitation of the study
3 4
CHAPTER 2 PROFILE OF SWITCHGEAR INDUSTRY IN INDIA
5-12
2.1 Switchgear Industry
6
2.2 Market opportunity for Switchgear Industry
7
2.3 Global Switchgear Market
9
2.4 Switchgear market in India
10
2.5 Future impact of economic crisis
11
CHAPTER 3. ALIND-AN OVERVIEW
3.1 The aluminium industries Limited
13-19
14
3.2 ALIND – the first and foremost
15
3.3 Divisions of ALIND
16
3.4 organisational structure
19
CHAPTER 4. PRODUCT PROFILE OF ALIND SWITCHGEAR LTD
4.1 Circuit breakers 4.2 static relay
20-24
21 21
4.3 switchgear CHAPTER 5.
23
FUNCTIONAL DEPARTMENT OF ALIND SWITCHGEAE LTD
25-57
5.1 Personal department
26
5.2 Production department
5.3 Marketing and sales department
5.4 Purchase and construction department
5.5 Finance and accounting department
34
43
49
52
CHAPTER 6 PERFORMANCE ANALYSIS OF ALIND SWITCHGEAR LTD
58-62
6.1 Swot analysis
59
6.2 porters five force analysis
60
CHAPTER 7. FINDINGS, CONCLUSION AND SUGGESTION
63-66
7.1 Findings
64
7.2 Conclusion
65
7.3 Suggestion
66
Bibliography
67
CHAPTER 1 INTRODUCTION
1
1.1 INTRODUCTION Organizations plays major role all over the world, different organization meet people needs and provide them with product and services or both. Due to globalisation the world has become global village. This has very much helped people to get their needs. Different firm play different roles and it has its own importance. The company which have choose for the organizational study in ALIND. It is a well developed company partially owned by the state government of Kerala. ALIND produces cables and conductor, steel wires, wires working machinery, high voltage switchgears and static relays for different users. They produce switchgear and transformers which are mainly consumed by the Kerala state electricity board and Indian railway. The products are utilized for the welfare of the public. These products are not directly consumed by the public.
The company has different departments to control the overall functioning of the company presently the company is owned and managed by the Bombay based Somani group. A professional board of directors with Mr.Rajendra somani as chairman manages the company. All the departments in the organization are studied. The production and the sales function of the company are carefully analyzed. A careful and detai led study is conducted with the given period of time.
1.2 SCOPE OF THE STUDY The organization study is conducted to have practical knowledge about the various functions and activities of an organization. The study helped to know the activities of various departments in the organization. The importance of each activity in an organization is analyzed.
2
1.3 SIGNIFICANCE OF THE STUDY Significance of the study is that study was conducted to learn the organization structure and different department of organization. In short the
3
study was conducted to get familiarize with the dynamics of the organization. As part of the academic curriculum, the project work has its own significances for the management students to understand the theoretical aspects of the management practically. This type of study will be helpful for prospective managers in involving new ideas and enabling them to take appropriate managerial decision.
1.4
OBJECTIVES OF THE STUDY
To study the organizational structure of the ALIND.
To study the function of various depart ments and interdependence of these departments.
To know the various products of the ALIND.
1.5 METHODOLOGY Both primary data and secondary data were collected. However the main data are collected from primary data
PRIMARY DATA Primary data was collected by conducting discussions with the company officials and others staff in the office as well at the factory. This is further followed up with the observation recording of necessa ry information and their analysis and interpretation.
SECONDARY DATA Secondary data was collected from published sources of the company like annual reports, magazines, website and other official records.
1.6 REFERENCE PERIOD Since the study is done by usi ng both primary and the reference period of primary data of the organi zation study was 30 days. Primary data st
st
study starts at 21 march 2016 to 21 April 2016.
4
1.7 LIMITATION OF THE STUDY
There was sufficient support from the staff but the company tight work schedule prevented them from giving additional information.
The study was mainly based n secondary data might have reflected in analysis.
The reluctance on the part of managers in disclosing confidential information was also a limitation
5
CHAPTER - 2 SWITCHGEAR INDUSTRY – AN OVERVIEW
6
2.1 SWITCHGEAR INDUSTRY Continues power supply is critical for any industry. As India is becoming an important global supplier of goods and services, uninterrupted power supply gains immense significance likewise the availability of good quality electric equipments imperative.
At present, India has an installed generating capacity of over 146902 MW [as on Dec 08] and a capacity addition of about 80000 MW is required to meet the objective of “Power For All”
this necessities enhancement of the
transmission and distribution infrastructure to evaluate additional power across the country. The Indian government has initiated the accelerated power development and reform programme [APDRP] in order to minimize aggregate technical and commercial [AT & C] losses at the distribution level, with the objective of improving the financial health of state electricity board, this provides a huge opportunity for the power sector with low voltage [LV] and medium voltage [MV] switchgear being no exception.
India’s switchgear industry is fully developed and mature. Having clocked sustained growth in the past and continuous demand from power, industrial, infrastructure, commercial and residential sector is expected to stimulate growth for LV and MV switchgear. Switchgear is expected to be in great demand owning upgradation of the T& D infrastructure and the promising continued growth momentum across end- user verticals. With the demand for both LV and MV switchgear expected to rise, the future seems to hold much potential for suppliers. Switchgear industry is one of the major industries in India. The switchgear industries offer auxiliary equipment like lightning – arresters, isolators, Instrument transformers etc for industrial customers. The industry offers industrial type switches, switch board for distribution and motor starter, also complete engineering turkey contracts for electrification of industrial complexes undertaken by the industry.
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Safety of people and installation of power system requires a very high reliability, therefore circuit breakers a integral part of power s ystem. The purpose of circuit breakers is to allow the uninterrupted flow of current in a normally operating power system. And rapidly interrupt the current when a fault occurs. Due to high mechanical and electrical endurance vacuum circuit breakers and SF6 circuit breakers have triggered their success in the circuit breaker market. Towards the late 60’s SF6 started in the early 70’s. In India the vacuum technology was incorporated around 1983 in 11kv and 33kv voltage class and SF6 introduction, around 1983-86. Vacuum technology was implemented in India by BHEL, S&S power and SF6technology in medium voltage by Voltas Mumbai.
Prior to 1983, in India we were using bulk oil circuit breakers and air-blast circuit breakers [ABCB’s]. In spite of tangible clear cut benefits of SF6 and vacuum technologies like being maintenance free and having no fire hazards, majority of our state electricity board showed high reluctance as these products where thrice as expensive compared to ACB’s and MOCB’s.
2.2 Market Opportunity for Switchgear Industry Utilities segment
India’s power generation capacity of 2300 MW in 1950 expanded to 146,902 MW in December, 2008. With the electricity five year plan
(2007- 2012) THE
CAPACITY IS EXPECTED TO INCREASE BY AROUND 78,000 MW. The government is focusing on increasing the penetration of power supply in villages. Scheme like APDRP and RGGVY are providing an excellent opportunity for the LV and MW switchgear market with about 20.0 to 30.0 percent villages yet to be electrified.
Industrial segment
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India’s industrial sector accounts for nearly 30.0 percent of GDP, with most of the industrial divisions reporting growth in output in the first half of 2008. An increase in process automation levels is expected to support push- buttons, contactors and switching relays, as well as the protection relays market, which finds application extensively for motor control. Investment in new infrastructure setup is set to increase the market for ISG, RMUs, MCCBs, ACBs, C &Rs.
Commercial and infrastructure
Infrastructure sector is one of the most important thrust sectors in the eleventh five year plan of the government with an estimat ed investment of 475 billion over five year; an average of 7.6 percent of GDP. Massive investment from the private and public sector are expected to drive the growth and social infrastructure, such as new hospitals, commercial complexes, railways, roadways and schools.
Infrastructure development is expected to benefit the RMUs, ACBs, and MCCBS market foe switching, control and general protection application. Residential sector
In the residential construction sector, the market slowed down in 2008 with year-on- year unit growth decreasing to 10.8 percent as compared to 2 4.0 percent in 2007. The slowdown was primarily because of increased interest rates which made home loans more costly. Nevertheless, the market is expected to continue growing above 10.0 percent during the forecast period, especiall y with the recent reforms to curb inflation. Continued growth of the residential sect or is likely to drive the MCBs, ELCBs and MCCBs market. Power Plant Modernization and Refurbishment
As in other part of the world, numerous power plant in India are nearing the end of their service plan, thus requiring overhauling and modernization. This includes replacement of existing transformer, which are on average over 30 years old and the
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replacement of LV, MV, and HV switchgear. Power plant modernization and refurbishment is expected to support growth of the switchgear market.
Alternative Energy Sources
The Indian government continues to research and invest in renewable sources such as wind, solar and hydro electric power. The renewable energy market is likely to grow at 22.0 – 25.0 percent for the next 4 -5 years. The increase in investment in alternative in energy sources is expected to support market growth, as LV and MV switchgear products are required for general protection as well as switching. The MCCB and MCB market are expected to benefit considerably from alternative energy expansion.
2.3 GLOBAL SWITCHGEAR MARKET Switchgear is a combination of device designed to control, regulate, meter and protection electric generation, Tran’s mission and distribution equipment, and electric power control system. The global market for switchgear is anticipated to do well in the coming times as demand is likely to be driven by medium and high voltage types of switchgears. Revenues in the switchgear market are closely tied with the demand for transformer, therefore any increase in demand for transformer will lead to a rise in demand for switchgear and vice versa.
The global gas insulated switchgear market is expected to show impressive growth in the future. The market for switchgear will continue to evolve globally, led mainly by escalating demand for renewable sources of energy, growth i construction and industrial
sectors
especially
transmission
distribution
systems.
Although
environmental regulation offer scope for expansion, volatile oil prices, rising raw material prices and restricted flow of investment in the electricity sector act as stumbling blocks.
Rising investment in alternative source of energy is expected to contribute to the growth of medium voltage and low voltage switchgears used for switching and
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general protection. Moreover, this application area will also trigger demand for miniature circuit breakers (MCB) and moulded case circuit breaker (MCCB).
Against a break drop of tough economic climate, corporate success will critic ally hinge upon the ability to research and develop new innovative products at competitive prices and validate new application for existing products to distinguish themselves from that of competitors. Several technologies development such as arc- r esistant technology and magnetic actuation have been undertaken by various original equipment ma nufacturers (0Ems) focusing on enhancing the reliability and efficiency of switchgear equipment. Growth in switchgear will also be sustained by government directive older redundant system to achieve operational safety, and security in industrial establishment.
2.4 SWITCHGEAR MARKET IN INDIA The global market for switchgear is expected to post good growth rate in the coming years as demand soars exponentially worldwide. With the Indian government focused on bringing about improvement in the state electricity board, the Indian market for switchgear is likely to post good growth rate by 2020. The market for switchgears is well established in India, with a lot of potential for further growth coming from utilities, as well as commercial and industrial segments.
With India facing an energy crisis, the government has plans to reform the power sector. With reforms on the way, the future of the Indian switchgear industry looks bright and investment in the market is likely to flow in.
The Indian electrical equipment industry comprising of multinational, large medium & small players is fully geared up producing, supplying and exporting a wide variety of electrical equipment including switchgear and control gear items needed by the expanding industrial and power sector on which we focus in the article. This industry sector in fact manufactures the entire voltage range from 240 V to 800KV. 1200KV equipment is under indigenous development for 1200KV Test station at Bina, MP. The current technology level in India is contemporary. It is esti mated that the present
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size of the Indian switchgear industry, is around Rs. 12000 cores. The industry grew by about 21% in volume terms in 2010 – 2011. Overall exports decreased by 8 %, whereas imports increased mainly for MV/HV by more than 25%. Weight age of switchgear industry based on IEEMA electrical industry index is 15.2%. The population of IEEMA members from switchgear industry is around 140 members. Currently, the MV & HV segments are suffering from overcapacity due to lack of orders. Inadequate demand could be due to insufficient planning by the users and delay in finalizing tenders. Unfortunately bunching of orders also creates supplydelivery problems, also L1 (lowest quoted price) procurement s ystem followed by all utilities i.e. procuring products at lowest price creates a hurdle for bringing good quality material in the system. Further insistence on repeated type testing f products in spite of inadequate type testing laboratories poses additional delays and harm to the equipment.
2.5 FUTURE IMPACT OF ECONOMIC CRISIS The future of the LV and MV switchgear market is highly dependent on the rectification of the current energy crisis, power sector reforms being implemented in India and reforms to arrest rising inflation. Growth of the Indian LV and MV switchgear market will be supported by increased investment in the expansion of T & D network coupled with infrastructure and industrial development.
If the energy crisis is solved during the forecast period, investor confidence can be regained, allowing for increased investment in the utilities, industrial, infrastructure and commercial segments. The market for ISGs, MCCBs and C&Rs are expected to grow at a faster rate compared to the overall LV and MV market growth over the forecast period 2009 to 2015.
High level of competition in the LV switchgear market is expected, as major markets participants focus on maintain their current market shares. This will be made difficult with the emergence low-cost domestic players who market products of similar quality.
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Factors that are expected to restrain growth include the shortage of power supply being experienced in India, as well as the increase in interest rates caused by inflation, which can restrain investment in major projects during the forecast period.
The end – users are demanding tailor-made equipment, which best suits their project needs. The retrofitting projects need highly customized switchgear for the current demand. Recently, the demand for turnkey solutions in their portfolio, as
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the end- users demand for total solution, the Tier II and Tier II suppliers can explore synergies with solution providers. With rising level of market maturity, suppliers are likely to benefit from operating in niche markets, such as the intelligent overload relays, which can experience higher than average growth during the forecast period. The major technological factors in the market are safety, maximization of efficiency and reliability. Quality of the sw itchgear gives a market edge for most of the suppliers. Dedicated commitment to the overall quality of the switc hgear has been determined as a mandatory strategy for the success. Overall, the Indian LV and MV sw itchgear market is well established and organized suppliers are expected to generate significance revenues. Despite the predicated fluctuations in the annual growth rate during the forecast period, the industry is expected to grow in terms of revenues.
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CHAPTER 3 A PROFILE OF - ALIND
15
ALIND, a premier engineering industry in India engaged in multi faced activities was established in 1946. The company today have 6
manufacturing
divisions, 2 contracting divisions and an export division. The main manufacturing plants are located in the states of Kerala Andhra Pradesh and Orissa. ALIND ‘s history is inextricable woven with the history of India. Way back in 1947, India has tried with destiny and become an independent sovereign republic. ALIND was established in 1946 and commenced the production in the year 1948. While the entire nation saluted the Indian tri colour flag and ceremonial guns of the British emperor ramparts of the red fort in Delhi, in a tiny hamlet named kundara, the first reel of aluminium conductors rolled down the aisle of Alind factory. On the glorious day of independence, India made history and ALIND too.
More than 4 decade ago ALIND pioneered the manufacture of aluminium conductors in India and for the very first in India that aluminium, a versatile and abundant metal could successfully replace copper, the conventional power carrier. In fact this technology innovation revolutionised the bulk power transmission and distribution of power in India and hence ALIND calls them “The Power Movers”. In 1955 ALIND core wire and high tensile wires from ALIND thereby marketing a proud niche for Indian exporters in international market.
3.1 THE ALUMINIUM INDUSTRIES LIMITED The aluminium industries limited came in to existence, on 2 nd January 1946, promoted by then Seshasayee group with its conductor division set up in Kundara, kerala under technical collaboration from the world renowned ALCAN, Canada, The aluminium development laboratories U.K &ALCAN S.A, Zurich, Switzerland. Since then, ALIND has produced more than a million kilometres of AAC, ACSR, AND AAAC conductors building the lifeline of power in India and aboard, and hence ALIND could rightly call itself THE POWER MOVERS.
Presently the company is owned and managed by the Bombay based somani group. A professional Board of Directors with MR. Rjendran Somani AS CHAIRMAN manages the company.
16
As the year rolled by the, ALIND diversified its acti vities by uniting various streams of power transmission technology and emerged as multi – divisional composite corporate entity. ALIND has abreast the latest technology by collaborating with world leaders in their chosen fields.
3.2 ALIND- THE FIRST AND TH FOREMOST
To propagate the use and supply of aluminium conductors.
To bring the revolutionary property process of continuous casting and rolling of aluminium wire.
To manufacture ACSR core wire and high tensile steel wire.
To export conductors to be awarded the ISI mark.
To manufacture fibre glass reinforced resin bonded components.
To propagate SF6 Gas CIRCUIT breaker technology and obtain licence for manufacture.
To manufacture and supply vacuum interrupters and vacuum circuit breakers for the traction installation of Indian Railway and the only Indian supplier approved by Rdso for vacuum interrupters and vacuum circuit breakers so far.
Incorporated in 1946, Aluminium industries (ALL) was formed to manufacture plain steel covered aluminium conductors for electrical overhead transmission purpose, accessories and fitting, aluminium transmission purpose, accessories and fitting, aluminium transmission lines, general utility aluminium wire and aluminium alloy casting. The company’s products are sold under ALIND brand nam e. In 19851986, AIL entered the electrical contracting field. In 1976- 1977, a technical collaboration agreement was signed with Delhi – Alsthom, france, to manufacture 132KV and 220KV circuit breakers and current transformers.
The static relays project was commissioned in Jan 82. In the switchgear Division Mannar the company had taken up the implementation of the p roject for the manufacture of switchgear in collaboration with firth brown castings, UK. In 1984 –
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85, the company obtained a licence for the manufacture of vacuum circuit breakers in collaboration with Meidensha of Japan. During 1987-88, the company came under the provision of sick industrial companies Act, 1985 and reference was made to BIFER. BIFR finalised rehabilitation scheme submitted by IRBI in October. Which was being implemented from I Nov. 89. As per the approved scheme, the somani group and banks inducted Rs.300 lakhs and Rs.1050 Lakhs respectively in to the company. A company under the name Alind (Nigeria) was incorporated in Nigeria for the manufacture of conductor and cables. Today ALIND is a multi divisional composite, corporate entity with the following super speciality divisions .
3.2.1 DIVISIONS OF ALIND
Conductor and Cable Division: Kundara, Hyderabad Pioneering with revolutionary properzel process in the early 50’s ALIND was
once the manufactures of conductors and cables in India. It makes widest range from extremely fine low tension to extra high tension conductors for 400 kV lines. ALIND has participated in many major projects in India and abroad.
Steel Wire Division, Kundara ALIND manufactured a wide range of steel wire products to Indian and
international standards This plants capacity has recently been substantially increased to meet the international demand for ACSR AASR core wire, telegraph wires, spring steel wires and other types of wires.
Material Handling Division, Hyderabad This division produces crushers, conveyors, coal cutters and other
specialised for plants, mine and allied industries.
Wire Machinery Division, Hyderabad
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It is well equipped Hyderabad plant. ALIND make the full range of wire machinery in INDIA. ALIND’S unmatched casting facilities are utilized by many others such as HMT, HAL, BHEL and ISRO
Static Switch relay division, Trivandrum Incorporating state of the art technology ALIND makes static relay. This
division was set up in 1981 in collaboration with the ALSTHOM ATLANTIOUE of France. It produce range of tough, durable, accurate static relay, high impedance current relay, over fluxing relay, auto releasing voltage regulating relay, over current relay etc.
Consultant And Engineering Division Trivandrum This division provides technical and managerial service, so that others can share the fruit of ALIND’s experience. It helps entrepreneurs to set up viable unit in India and abroad in various industries like aluminium rod rolling, conductor and cables foundry units, power transmission and distribution system and others. Among the service it can offer survey and feasibility studies, designing, marketing and man power selection.
Export Division Trivandrum The first consignment of aluminium conductor cables to leave the Indian shore
was from ALIND. ALIND has now exported over Rs.250 million worth of cables and conductor, wire processing machinery, steel wire and switchgear. These are going more than 30 countries both developed and developing.
ALIND, Switchgear Division, Mannar, Kerala The project is done in this switchgear division of ALIND in Mannar, Kerala;
let us giance through the company and product profile of ALIND switchgear division Mannar Kerala.
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The switchgear Division of ALIND went in to operation in 1969 at mannar in Kerala with technical and financial participation of the then Delle- alsthom, France, the initial product. Range being outdoor MOCBs of 36KV & 72.5KV and oil filled outdoor current transformers up to 72.5KV. Indoor metal clad switchgear panels with MOCBs and 145 KV oil filled outdoor current transformers were added into the product range in year 1974-75 and 1978-79 respectively. Having obtained licence for manufacture of the new technology sulphur Hexa Fluoride (SF6) gas circuit breakers for the first time in India, ALND entered into technical collaboration with the same world leaders M/S Alsthom ATLANTIQUE, France for manufacture of these breakers of 145 KV & 245 KV ranges, propagated this technology in India through nationwide appraisal programmes for all utilities and consultants and commenced manufacture towards early eighties. Another breakthrough was made in 1984 by venturing in to vacuum technology by going for another collaboration with m/s meidensha electric manufacturing company ltd, japan for manufacture of 12Kv single pole vacuum interrupters and 25KV single pole vacuum circuit breaker for Indian railway approved by RDSO after type testing & fields trials. Also ALIND indigenously developed 25kv interrupted and vacuum breaker with magnetic actuator mechanism which has completed field trials
and
approved by RDSO under development source, thereby acquiring know-how and exposure to all the latest relevant technologies for manufacture of medium high and extra high voltage circuit, breakers.imbibed the basic technologies in manufacture of circuit breakers, switchgears and current transformers, ALIND switchgear Division believed in the philosophy of in-house R&D for updating its technology base up rating its product range, widening its application engineering capabilities and innovation skills to come out with a wide range of customer friendly equipments in the entire range of transmission and distribution.
ALIND switchgear Division has a well – built and modern R&D and manufacturing set up for faster adaptation of its products to suit the varying needs of its prestigious clients from small scale, large scale, mega scale industrial customers to power corporation, Indian Railway, store electrici ty boards & most of the consultants,
20
in addition to overseas clients like NEPA, Nigeria; NEA, Nepal; MOD and MEW Dubai, MUSCAT ect.
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3.6 Organizational Structure of ALIND manner CHAIRMAN
BOARD OF DIRECTOR
MAMANGING DIRECTOR
GENERAL MANAGER
FINANCE MANAGER
FINANCE EXECUTIVE
MARKETING MANAGER
MARKETING EXECUTIVE
SALES EXECUTIVE
HR MANAGER
PERSONNEL
PRODUCTION MANAGER
ASSISTANT MANAGER WORKERS
Fig no: 1
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Chapter 4 Product Profile of ALIND Switchgear Ltd
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4.1. Circuit Breakers A circuit breaker is an electrical device used in an electrical panel that monitors and control the amount of amperes (amp) being sent through the electrical wiring. Circuit breakers come in a variety of sizes. For instance, 10, 15 and 20 amp breakers are used for most power and lighting needs in the typical home. Some appliances and specially items (washers, dryers, freezers, whirlpool, etc.) will require a larger circuit breaker to handle the electrical load required to run that appliance. If a power surge occurs in the electrical wiring, the breaker will trip. This means that a breaker that was in the “on” position will flip to the “off” position and shut down the electrical power leading from that breaker. Essentially, a circuit breaker is a safety device. When a circuit breaker is tripped, it may prevent a fire from starting on an overloaded circuit; it can also prevent the destruction of the device that is drawing the electricity.
4.2 Static Relays and C & R Panels The Aluminium Industries Ltd (ALIND) established in 1946, entered into technical collaboration with Dell Alsthom in 1977 for the manufacture of solid protective relays at their Relays Division at Trivandrum. ALIND was was the first company in India to introduce a range of static relays in 1982. As the company in the forefront to introduce static relays, ALIND has the largest experience in this technology. The division has a most modern electronics plant producing the most advanced static and microprocessor based relays and C & r panels.
Apart from the rela ys developed during collaboration period, ALIND indigenously developed other static and microprocessor based relays and annunciates suitable for railways and Electricity Boards with the unparalleled experience gained in the design, manufacturing testing and application engineering.
C & R PANEL – CONTROL PANEL WITH PROTECTIVE
RELAYS FOR TRACTION SUBTRACTION
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The C &r panel for use in the traction subtraction for control of 220/132/110/66KV and 27KV circuit breakers, 27KV interrupters and protect ion of 220 or 132 or 110 66/27 single phase transformers, substation equipment, 27KV over Head equipment (OHE). Compact relay design accommodates entire protection, control and annunciation in the panel .
AZM1114+:MICRO CONTROLLER BASED FEEDER
PROTECTION RELAY AZM1114+ relay is a comprehensive feeder protection scheme designed for the protection of conventional conventional 27KV or 2x 2x 27 27 KV (at feeding system) ac single phase 50HZ 50HZ traction over Head equipment (OHE). The relay is the modified version of the already approved and validated feeder protection relay type AZ1114+ with built in auto reclose relay and many other improved features. The relay meets the relevant IS/IEC standards. The protection function includes. Parallelogram characteristics distance protection (DP) Wrong phase coupling protection ( WPC) Potential transformer fuse failure protection(PTFF) High set instantaneous over current protection (Inst. OCR) Local Breakers back up protection (LBB) Switch on to fault protection(SOTF) Built in multi shot auto reclose feature Auto reclose bypass on high current earth faults
AVD 11-C: VECTORIAL DELTA I RELAY
The vectorial Delta 1 relay type AVD 11- C has been specially designed for application in the traction network to detect earth having resistance. It acts as a backup to the distance protection relay and sensitive enough to discriminate fault current with
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magnitude less than normal load currents. This is encouraged in tracti on network during extended feed condition or during earth fault with very high resistance.
TVG 124: PANTO FLASHOVER PROTECTON RELAY
This relay based on logic circuit offers reliable protection of catenery wires insulted overlaps of traction network. This relay safeguards the category wires at insulted overlaps of traction network. The relay safeguards the catenery wires from flashover when a moving panto happen to bridge the overlap with one side alive and the other dead by tripping the breaker connected to the live OHE.
4.3 SWITCHGEAR Switchgear is a combination of electrical disconnects switches, fuses or circuit breakers used to control, protect and isolate isolat e electrical equipment. Switchgear is used both to de-energize equipment equipment to allow work work to be done done and to clear faults downstream. This type of equipment is important because it is directly linked to the reliability of the electrical supply.
4.4 Product Profile of ALIND, Switchgear Division, Mannar, Kerala Minimum oil Circuit Breakers
In the bulk oil breaker, the oil serves as both arcs extinguishing medium and man insulation. The minimum oil breakers were developed to reduce the oil volume only to amount needed for extinguishing of the arc – about about 10% of the bulk- oil amount. The arc control for the minimum oil breakers is based on the same principle as the arc control devices of the bulk oil breakers. To improve breaker performance, oil is injected into the arc. Vacuum circuit breakers
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ALIND are familiar in design manufacture, to supply & installation of VACUUM CIRCUIT BREAKER PANLs for all current rating on HT side. The classified voltage rating of the VCB panel are from 11KV to 36KV. We had even supplied no’s of VCB panel to many private & public sector. Our VCB are very competitive & attractive on both side of price, structure s tructure & utilization.
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SF6 circuit breaker or gas circuit breakers
Sulphur hexafluoride (SF6) is an excelle nt gaseous dielectric for high voltage power application. It has been used extens ively in high voltage circuit breaker and other switchgear employed employed by the power i ndustry. Application Application for SF6 include gas insulated transmission lines and gas insulated power distribution. The combined electrical, physical, chemical and thermal properties offer many advantages when used in power switchgears. Some of the outstanding properties of sf6 making it desirable to use in power power application arc; High electrical strength Unique arc- quenching ability Excellent thermal stability Good thermal conductivity
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CHAPTER 5 FUNCTIONAL DEPARTMENTS OF ALIND SWITCHGEAR LTD
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5.1 PERSONNEL DEPARTMENT The personnel department is now called human resources (HR) department, organizational unit or department having the functional responsibility of personnel administration. This dept acts according to the manpower and recruit employees. This department is responsible for hiring and training and placing employees and for set ting policies for personal management. Human resources is responsible for the development of the company’s HR policies, strategies and procedures on all aspects of people management, including staff planning, recruitment and selection, pay and conditions of service, management development, employment relations and works with the conditions of service, management development, employment relations and works company’s equality and Diversity team to ensure equality of opportunity for all staff. Human resources aim’s to provide a well intergrated, professional and cost- effective service to the company.
The department’s achievements over the past few years include major strategic development such as senior leadership and management development programs, support for occupational health, enhanced staff welfare and counselling service, implementation of modernised pay and grading securities affecting inter printed by job evaluation, and a staff survey that the overwhelming majority of staff felt that the company was an excellent place to work.
5.1.1 Function of Personnel Department
Recruitment and training
General administration
Public relation
Maintain records regarding HR of the firm
Meeting the needs and wants of the employees
Collective bargaining
Grievance handling
Making good working atmosphere
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Security to the job wages and salary administration.
5.1.2 Departmental Management Team The HR manager the overall strategy and work of the department and is supported by senior managers we have specific responsibilities for division of the department and specific aspects if work. The departmental management team meet monthly and manages the work programs of the department, ensuring collaboration on project which cut across team/division boundaries, and is responsible for developing ideas and formulating plans for future HR/staffing str ategies.
5.1.3 HR Administration This area is led by the HR manager. The types of activity undertaken includes organizing advertisements and recruitment processes, issuing contracts, advertising on terms and conditions of employment, dealing with payroll related issues, sickness, maternity and other leave of absence and processing res ignation and retirement.
5.1.4 Information and Communication The HR manager acts as system manager for the integrated HR/payroll system, and is responsible for the production of reports and information, like staff details, vacancies etc. this role is responsible for the production for maintain an overview of strategic information, communication and data needs across the department and the company, including the development of the staff intranet and the HR department web site. The manager is also responsible for a number of HR information initiatives and strategic company wide project and is supported, in these areas of work, by an HR information and system advisor
5.1.5 Recruitment, Selection and Training At the beginning of each financial year department originates manpower planning if any and forward to personnel department. The personnel officer analysis this and prepares list of such recruitment and submit to the chief division or approval, interview
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will be conducted and rank list is prepared and is submitted to the appropriate authority for approval. The need based recruitment is carried out after that. Recruiting process
The company presently have employee strength of 200plus. The new vacancies are filled by the selection of right candidates from the already selected trainees. The company provides a platform for the individuals to expose themselves by getting in to the training the company will recruit from the trainee. And make them permanent. The process will be as follow. Entering into the training period Completion of the training period Written and practical tests for the trainees Interview by the HR panel The best will be selected TRAINING – TYPE AND PROCESS
Presently 2 types of training programs are provided by the company The training for the fresher’s The training for the staff’s
TRAINING FOR THE FRESHER’S The fresher does will get a chance to explore themselves after the completion of their degree like ITI, diploma, B. Tech etc. the t raining period is for 3 years. They will get the maximum exposure from the form and will get the full guidance from the officials and the technicians.
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TRAINING FOR THE FRESHER’S The effective staff training is to identify the principal duties of the staff members themselves, and to ensure that they are aware of their individual roles and responsibilities. Beyond that a regular scheduled session should be put in place that only addresses current responsibilities, but also acknowledging that all staff be interested in developing their own skills and understanding the importance of their role in the business.
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5.1.6 Performance Appraisal System This system is used as an evaluation
system and as a feedback system. The
aim of evaluation system is to identify the performance gap. This means that it help determined gap between the actual performa nce of the employee and that required or desired by organization. The aim of the feedback system is to form the employee about the quality of this work or performance. This is inter active process by which the employee can also speak about this problem to his superior.
5.1.7 Recruitment Policies 1. No person below the age of 18 and above the age 40 will be normally entitled to be recruited as work men in the factory pr ovided that person below the age of 18 but not under 15 years of age may be employed as office boys. 2. All work men is mentally examined by the company’s medical officer at the time of recruitment and periodically thereafter. 3. Immediately on recruitment the name of the work men and the grade or category to which he belongs will be entered in the muster roll. 4. On recruitment every work men shall produce documentary proof his age and the age will be entered in the company’s record. 5. The performance of every probationer
will be adjusted throughout performance
rating system.
5.1.8 Grievance Handling It is agreed by both parties that solution of problem and settlement of dispute and grievances can be best achi eved by joint consultation which also contribute to ward better understanding and relation. In consideration of the above, the following committees are consulted, and its composition, objectives, fu nction, tenure etc. will be discussed and finalized between the parties of this agreement for their proper functioning during the tenure of this agreement.
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a. Joint council b. Shop floor council
It is agreed that grievances will be settled expeditiously at the lowest level and only when this is not possible will this be handled and settled at higher levels.
For this purpose each union will nominate one representative from each section to represent work men’s grievances according to the grievance procedure and forwarded a list of names of sectional representatives so nominated to the management and intimate change as and when they take place.
Grievance handled in accordance with the grievance procedure lai d down below:
a. The
workman
in
person
will
take
up
his
grievance
with
his
supervisor/foreman/technical assistant/section head as the case may be b. If the decision of the immediate supervisor officer is not satisfactory or an answer is not received by him within 24hrs. ( one working day), the workmen accompanied by his section representative will present his grievance to the department head concerned in writing signed by the workmen and the other section representative acts on behalf. c. If the department head concerned cannot settle the matter to the satisfaction of the workman within 40hrs. (two working days), the department head concerned with his mark will give the grievance note to the personnel officer/executive personnel. d. The personnel officer/executive personnel, on receipt of the grievance note from the department head concerned, will contact the workman and his sectional representative within 48hrs (two working days) and will ascertain all r elative facts and endeavor to settle the grievance satisfactorily. e. In case the personnel officer/executive personnel are not in a position to settle the grievance satisfactorily, he will refer the same t o the general manager. The general manager will go through the case and issue instruction.
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f.
The personnel office/executive personnel will implement the instruction of the general manger and will inform in writing the complaint or his s ectional
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representative with a copy to the pers on concerned about th e final decision of the management. g. If the decision of the general manager is
not considered satisfactory, or if not
replay is received from the management within 15days from the date of submission of the grievance note, the wo rkmen or the union has a right to refer the case to the state labour department ad provided by the existing legislation or to take such other constitutional action as the workmen or union thinks fit. Step (a): will be taken by the complaint and. Or
union representative during
his/her scheduled period of rest. Step (b): may be taken during working hour with the permission of the supervisor/section head/foreman/ technical assistant.
The union will see only genuine grievan ces are brought by workers to the notice of the management and that wastage of time is avoided in handling grievances of an imaginary nature.
5.1.9 Employee Welfare Safety and welfare measures are in evitable to any organization where workers are involved. An organization’s responsibility to its employees extends beyond the payment of wages for their serv ices. The employee’s safety and welfare on off the job within the organization is a vital concern of the employer. Providing a safe and healthy environment is a prerequisite for any productive effort.
Labour Welfare has the following objectives: 1. To provide better life and health to the workers. 2. To make the workers happy and satisfied. 3. To relive workers from industrial fatigue and to improve intellectual, cultural and material conditions of living of the workers.
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The basic feature of labour measure are as follow:
1. Labour welfare includes various facilities, service and amenities provided to workers for improving their health, efficiency, economic betterment and social status. 2. Welfare measure are in addition to regular wages and other economic benefits available to workers
due to legal provisions and collective bargaining.
3. Labour welfare schemes are flexible and ever changing . New welfare measures are added to the existing ones from time to time. 4. Welfare measure may be introduced, government, employees or by any social or charitable agency .
The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labour force for the organization. The purpose of providing such facilities is to make their work life better and also to rise their standard of living .
Health of Employees. •
Cleanliness: the factory will be kept clean by daily sweeping or washing the floors and work rooms and by using disinfectant where necessar y.
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Disposal of wastes and effluents: effective arrangements are made for ventilation and temperature so as to provide comfort to the workers and prevent injury to their health.
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Dust and fume: effective measures are taken to prevent the inhalation and accumulation of dust and fumes or other impurities at the work place.
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. Lighting: sufficient and suitable are arranged in the factory and work rooms. Provision to make use of the sunlight in the production place is effectively done by using glass titled roofing.
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•
Drinking water: effective arrangement for wholesome drinking water for workers at convenient points.
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Latrines and urinals: there are sufficient number of latrines and urinals clean, well- ventilated, conveniently situated and built according to prescribed standards separately for male and female workers
Safety of Employees Fencing of machinery: all dangerous and moving parts of machinery are
securely fenced. Screws bolt and teeth are completely encased to prevent danger. Work on or near machinery in motion: lubrication or other adjusting
operation on moving machinery was done only by a specially trained adult male worker. Employment of young person on dangerous machines: no young person
was allowed to work on any dangerous machine (so prescribes by the state government) unless he is sufficiently trained or is working under the supervisor of knowledgeable person. Device for cutting off power: suitable device for cutting of power in
emergencies are provided.
Employee Insurance Employees are insured under the Employee’s state Insurance scheme (ESI). ESI in a self-financing social security and health insurance scheme for Indian workers. For all regular employees earning less than 15000 per month salary, the employer contributes 1.75 percentages, total share 6.5 percentages. This fund is managed by ESI Corporation, which oversees the provision of medical and cash benefits to the employees, through its large network of dispensaries and hospitals throughout India. The employees registered under the scheme are entitled to medical treatment for themselves and their departments, unemployment cash benefit in certain contingencies and maternit y benefit in case of women employees. In case of employment – related disablement or death, there is provision for a disablement benefit and a family pension, respectively.
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Recreation Club
Company provide a small r ecreation club so that the employees can relax, play cards, caroms etc. these employees ca n refresh themselves from the tiresome work. The club help them to recreate thei r mind and body to do the work with better energy and efficiency. The production department process and tracks all of the drawing for any given project once they are released from the design department. This department is responsible for taking the drawing and information and breaking them down in managerial packets.
5.2 PRODUCTION DEPARTMENT Production is the functional area responsib le for turning inputs into finished outputs through a series of production processes. The production manager is responsible for making sure that raw material are provided and made in to finished good effectively. He or she must make sure
that work is carried out smoothly, and
must \supervise procedure for making work more efficient and more enjoyable. 5.2.1 PRODUCTION PROCEDURE The production and planning department will set standards and target for each
section of the production process. The quantity and quality of product coming off a production line will be closely monitored. The purchasing department will be res ponsible for providing the materials,
components and equipment required to keep the production process running smoothly. A vital aspects of th is role is reinsuring stoc ks arrive on time and to the right quality.
The stores department will be responsible for stocking all the necessary tools, spares, raw materials and equipment required to service the manufacturing processes.
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STRUCTURE OF PERSONNEL DEPARTMENT
General Manager
Personnel Manager
H R Executives
Staffs
Fig no : 2
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PLANT LAYOUT
Inspection
Incoming Section Main store
Fabrication shop
Machine shop Auxiliary
Maintenance
shop
Component store
Planning Assembly Unit Works manager Packing Testing
section
(QA) LABS
Outgoing Fig no : 2 43
5.2.2 Procurement of Inputs After examining the drawing forwarded by the drawing department, the planning department assess the quality and th e quality of the raw materials to meet the requirement of the drawings. Then they
will draft the requirement with all the
specification of each component, finished, se mi – finished and raw materials for the production. The planning department will pu rchase it or will give it as a sub – contract. The materials will be unloaded as the incoming section of the plant where the main store is located. Here all the goods are subjected to insp ection, where the goods unloaded meet the ISO standa rds and the require ment of the proposed drawings. The goods are inspected for its quality and quantity of the raw materials and semi finished goods and the length, ize, weight , and the dimension of the finished goods. The finished goods are tested for QA and is tested electricity in the labs for the complete ensuring of that component. The testing will be done for the entire components without missing a single sampling is done only for small goods like fuses, otherwise all the component subjected QA and I needed lab test also. After the inspection of good they are stored. The goods are stored in two separates stores Main stores Component stores
All the raw materials and semi – finish ed goods are stored in the main store and all the finished goods are stored in the component store. The goods storing both the stores will be properly D – coded (a code starting with the alphabet D). Documents are prepared for the incoming goods in both the stores about the quantity and quality, remaining number of items etc.
5.2.3 Production Process The production process goes through different Shops and stores
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Main store Fabrication shop Auxiliary shop Component shop Assembly shop Testing shop
MAIN STORE The production process starts by acquiring the particular goods from the main store. Not all the individuals can go and have the components from the store. There are persons who are in charge of accessing the goods from the store. They will give MR (material request) for the required goods to the store. The store keeper will produce a BIN CARD for each item in the MR. This BINCARD will give all the details of that component like its remaining number, quality, dimension, date and time of last access etc. After the release of required goods from the store the BIN CARD will be updated to the present status of the component in the store.
FABRICATION SHOPPE Fabrication as an individual term refers to building metal structure by cutting, bending and assembling. Fabrication shop is located near to the main store. This is because the goods unloaded for storing may be of larger size. These goods cannot be stored s much, so these goods are chopped or shaped accordingly as per the requirement in the drawing and is then stored in the main store. The function of fabrication store is to fabricate the good so as to meet the specifications for example a large metal sheet is made into pieces and is shaped into the specified component.
AUXILIARY SHOP The function of auxiliary shop is to provide protection to the components. The goods from fabrication shop and the other shop are forwarded to the auxiliary shop to
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provide protection. Protection to the component a re done through painting (to prevent corrosion) galvanizing (process of applying a protective zinc coating), silvering (to increase the conductivity)
MACHINE SHO P A room, building or company where machine is done is called a machine shop. A collection of material – working processes utilizing power- driven machine tools, such as saws, lathes, milling machine, and drill process are used with a sharp cutting tool to physically remove material to achieve a desired geometry. The three principal machining processes are classified as turning and milling
other operations failing into miscellaneous categories include shipping, planning boring, broaching and sawing. Turning operations are oprations that rotate the workplace as the primar y method
of moving metal against the cutting tool. Lathes are the principal machine tool used in turning. Milling operations are operations in which the cutting tool rotates to bring
cutting edges to bear against the work piece. Milling machines are the principal machine tool used in turning. Drilling operations are operations in which holes are produce or refined by
bringing a rotating cutter with cutting edge at the lower extremity in to contact with the work piece. Drilling operations are done primarily in drill presses but sometimes on lathes or mills
Miscellaneous operations that strictly speaking may not be machining operation in that they may not be sward producing operation but these operations are performed at a typical machine tool. Burnishing is an example of miscellaneous operations. Burnishing produces no swart but can be performed at a lathe, mill or drill press.
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An unfinished work piece requiring machining will need to have some material cut away to create a finished product. A finished product would be a work piece that meets the specification set out for the work piece by engineering drawing or blueprints.
COMPONENT STORE The component store is a place where all the finished goods and components are stored. Finished goods purchased are also stored here. The components will be
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issued only to the assigned persons by the submission of MR (mat erial request). Here also the details of the components will get updated like the main store.
ASSEMBLY UNIT After all the above procedure, we will get all the finished components as per the requirements and the specification of the proposed drawing. All the components are assembled accordingly to form the finished final product. The assembling unit will also be provided will the drawing and th ey will fit all components as show in the drawing.
TESTING (QA) UNIT The testing unit including the labs will test the assembled units for its actual functionality. Two tests are usually performed. Routine test Type test
PACKING AND DESPATCHING The finished tested goods are then moved to the packing section for the despatch. The goods are packed in a wooden case made by the company itself. The carpenter makes these boxes with one end open. The good are safety kept inside the box with the help of electronically movable belt and conveyors. Th e open end is then closed with the striped woods. The despatch address is written on these striped woods in front of the boxes. These boxes ar
e loaded into the trucks by using the
electronically movable belt and conveyors and is despatched.
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MACHINE SHOP CHART
Chief of Machine Shop
Head of Machine Shop
Engineers
Supervisors
Workmen
Fig no : 5 50
5.3 MARKETING AND SALES DEPARTMENT This department deals with the activities pertaining to tendering, procurement of orders techno- commercial compliance, and execution of orders and collection of payment of all the products manufactured by the division.
The chief of marketing and sales may reproduce and circulates the abstract of the procedures as required in the department. The circulat ion and its control will be his responsibility, he will maintain a distribution charts for this.
5.3.1 Function and Responsibility •
Formulating strategy depending and appropriate on marketing/ customer need.
•
Interact with customers and appropriate them about quality of the product.
•
Preparation of annual marketing and sales monitoring
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Co-ordination tender review meeting on receipt of order.
•
Co-ordinates with agents and regional officers in connection with marketing and sales activities.
•
Approval of product idea with ED, chief of DS and chief of production.
•
Impart training and groom marketing, sales personnel to take up responsibilities assigned to them.
RESPONSIBILITIES OF THE HEAD OF MARKETING Depending on the seriousness of enquires, decide priority on responding to them,
follow up etc. Liaise with DS department for tender clarification, preparation of drawing, cost
estimation, bill of material. Submit quotation in consultation with DS and planning department.
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Organize tender committee (review of customer requirements) meeting with ED,
department heads of DS, purchase, planning, QA and production to finalize the specification. Attend techno- commercial discussion with consultants/ client and negotiate the
prices for finalizing the order. Give clarification/ guidelines to regional officers, agents in the field of follow up. Scan environment for new product, opportunities and advise DS department for
development to meet customer need. Keep data on price of the product and generate data bank for price decision and
market analysis.
RESPONSIBILITY OF THE HEAD SALES Submit tender, attend techno- commercial discussion and procedure order from
industrial customers and for spares in consultation with marketing wing. Liaise with D&D, planning and QA departments for smooth execution of all
orders. Correspond with customers to get clarification Obtain vendor registration with customer and other government/ public and
private sector and statutory bodies. Maintain contact and keep up the rapport with customers. Originate request for bank guarantees, securit y deposit, performance guarantee to
comply with purchase orders. Submit quotation for spares and procure order. Create data bank and prepare reports for marketing and sales department.
5.3.2 Procurement of Order
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The marketing and sales department collect information to tender enquiries from any of the following And arrange for procuring tender specification. Leading news paper Tender bulletins Agents and regional offices.
After obtaining tender specification, marketing wing will register it in the tender enquiring register (MK/REG/01). All tender details are enter ed in the register and serially numbered. On the receipt of tender enquires , chief of marketing distributes the enquires to the concerned person according to the work load on each engineer and he/she will thoroughly study the specification.
Marketing wing in consultation with DS department scrutinize the tender specification and in case any further clarification is required marketing wing will contact or write to the party and collect all the required details before preparing the offer to the party.
Marketing wing further prepares the legend for wiring assembly against the tender. The price detAils of the brought out items are collected from purchase department and costing details from accounts department and prepare the tender.
Marketing wing organise the tender committee ( review of customer requirement) with ED and department head of DS planning, purchase, QA and production to finalise the specification, delivery etc. To be quoted against the tenders. Minute of the tender committee ( review of customer requirement) is circulated among all participants. The decision to organise the meeting will be the discretion of the chief of marketing and sales department and record of the same (MK/MTC) is maintained. The price decision will be taken in consultation with ED.
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5.3.3 Execution of Contract On the receipt of LOL (letter of intent), the sales wing compares the order with the offer technically and commerciall y. If any deviation is observed with the office it is resolved with the customer prior to taking up the item for manufacture. The order is then registered in an order register (MK/REG/03). Against each order contract number is given. The contract number is given product wise a given below.
o
This is the main and important reference with respect to the particular order and all correspondence is referred with this contract number thereafter.
o
After
registering the order sales wing acknowledge the receipt of the order to customer quoting the contract number. A new file will be opened (MK/CON) giving this contract number for identification. o
Sales wing further, takes photocopies of the purchase order and circulates it to planning, DS, accounts, QA and purchase department. Along with the purchase order, copy of all relevant information regarding that particular contract will be furnished to DS department to take all technical parameters while issuing contractual drawing to the customer and manufacturing specification to production and planning by DS department. The records are kept in the respective file with sales wing. Sales wing request the DS department to issue the contractual drawing to the customer.
o
Sales wing subsequently organize a contract review meeting as per the procedure (MK/P/CRP)
o
In case any amendment are required sales wing does all correspondences with customer and gets the order technically and commercially clear in all respect.
o
Sales wing given the inspection call and arrange inspection directly or through regional office/agents. o After inspection the dispatch clearance, road permits, test report approved etc. Will be obtained from customer.
o
Sales wing further give details to purchase, planning, stores and QA, all the consignee particular enabling smooth dispatch of equipment.
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o
After dispatch, sales wing collect the chelans, from the purchase department, test reports from QA department, contractual drawing from D &D and then prepared the dispatch document which will be send to the paying officers, respective consignees, regional officers or agent for collecting payment. o Sales wing prepares the invoice and the serially numbered and entered in the invoice register (MK/REG/04). Sales wing subsequently does follow up work till the payment is received.
5.3.4 Disposal of Scraps Stores department declares the quantities of scraps and the intimation in the intimation in the form of a note is given to sales department. On receipt of this intimation, sales department invite quotation from various parties. The orders are placed on the highest bidder. The date of lifting of material will be intimated to stores. Executive (P&M) nominates a special officer to verify/measure/check the weight and quantity of scrap being sold and on receipt of the note duly signed by special offer, sales department prepares the gate pass and thus the scrap are disposed off in coordination with stores.
This department deals with procurement of raw materials, components operating supplies tools, spares etc. Also handles collection of inward materials, despatch of outgoing goods and civil construction.
5.4.1 Functions and responsibilities The purchase and construction department is headed by the chief of purchase and construction department and his function are given below.
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Procure raw materials/ component/capital goods conforming to specifications. Ensure that all materials and components from suppliers accompanied by necessary documents including proper test certificates which ever applicable.
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•
Carryout assessment and maintain approved vendors list. This list will be updated once in year.
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Maintain proper records for material accounting and financial accounting as applicable to purchased items.
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Arrange collection of incoming goods and dispatch of outgoing goods. Dispatch of outgoing goods will be arranged in co-ordination with planning and stores department and marketing and sales department.
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Civil construction and civil maintenance.
5.4.2 Origination of Purchase Order •
Purchase requisition raised by indenting departments and duty approved by the authorized personnel are received in department head, and handed over to the concerned dealing officer. The purchase requisition will contain full specification of the items.
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Department head of the indenting department can approve all purchase requisitions, except for capital equipments. The purchase requisition will be approved by the chief of division
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STRUCTURE OF MARKETING DEPARTMENT
CHIEF OF MARKETING DEPARTMENT
SENIOR EXECUTIVES
SENIOR EXECUTIVES (MARKETING)
ASSISTANT EXECUTIVE
ASSISTANT EXECUTIVES
Fig no: 6
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5.4 PURCHASE AND CONSTRUCTION DEPARTMENT •
A purchase requisition will contain only items of same category.
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On receipt of purchase requisition enquiry are sent to probable suppliers.
•
Purchase order is normally be placed on the lowest priced supplier, as the officer are normally received from quality conscious and reliable s uppliers.
•
Delegating of the purchase orders is prepared by the dealing officer. The draft purchase order along with comparative statement and requisition is scrutinized by a purchase committee.
Purchase committee members are
1. Manager 2. Chairman 3. Chief purchase and construction convener 4. Chief production, maintenance & engineering service. 5. Chief of design and development. 6. Chief of planning.
5.4.3 Ensuring Quality of Purchase Products While issuing the purchase order, care is taken to see that all relevant details and specifications as per the requirement are furnished to the vendors. Vendors are properly instructed/educated on the quality equipment. Since parties are evaluated earlier, the possibility of supplying substandard items is eliminated. Once the items are supplied they are inspected by the QA department based on the inspections advice originated by the purchase department for all relevant factors by passing the items. If there is any deviation from the requirement, QA department clearly mentions the details in the inspection report and forwards to the purchase department. Purchase department in turn informs the result to the vendors purchase departments make study and take appropriate action to improve the quality in consultation with QA and D&D departments.
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5.4.4 New Vendor Development Address of new parties will be obtained from various sources and based on the assessment made by the personnel vis it of their work and verification of their supplies to the parties, a sample is obtai
ned from them for inspection by one QA
department. If the samples are acceptable or
satisfactory to suit the requirement, a
trial order will be placed. The material recei ved against this order will be inspected and if approved , the suppliers will be rated on the inspection reports and is included in the APPROVED VENDOR LIST. While rating the party other factor such as their capability to supply the specified quantity as per requirement in time at a competitive price will also be considered.
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STRUCTURE OF PURCHASE AND CONSTRUCTION DEPARTMENT
CHIEF OF
HEAD OF THE DEPARTMENT
SECTION HEAD
DEPARTMENT
SENIOR SUPERINTED
ENGINEER
SUPERINTEND
ASSISTANT SUPERINTEND
OFFICE STAFF
Fig no: 7
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5.5 FINANCE AND ACCOUNTING DEPARTMENT
5.5.1 Accounting Policies •
Basis Of Accounting The financial statements are prepared under historical cost convention, on the accounting principles of a going concern and accordance with the applicable accounting standards.
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All expenses and income to the external ascertainable with re asonable certainty are accounted for an accrual basis.
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Interest on overdue debts and other claims to the extend considered recoverable are accounted in the year of claims. However claims whole recovery cannot be ascertained with reasonable certainty are accounted on acceptance/ receipt basis.
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The presentation of financial statement in conformity with generally accepted accounting principles (GAAP) require management to make estimate and assumption that effect the reported amounts of assets and liabilities, and the discloses of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.
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Fixed Assets Fixed assets are stated at cost less depreciation and direct cost related to acquisition of fixed assets are capitalized until the assets are ready to put use. This cause includes freight, installation cost, duties and taxes and other allocated expenses.
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The company assesses at each balance sheet date whether there is indication than the any assets may be impaired. If any such indication exists, the carrying value of such assets is reduced to its recoverable amount and the amount and the amount of such impairment loss is charged to profit and loss account.
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However, if in the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, the loss is not recovered.
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Investment
Long term investments are followed. No adjustment is made in carr ying cost for temporary decline in the value of i nvestment and where these are considered strategic in nature by the management. Depreciation/Amortisation
Lease hold land is a amortized over the period of lease. In case of building and plant machinery depreciation is calculated on straight line method and in case of other assets on written down value method at the rates and in the manner as prescribed in schedule 14 to the companies Act 1956. Each individual asset costing less than rs 500 is fully written off in the year of acquisition. In the case of closed units, depreciation is not provided . Value of Inventories
Inventories are valued at lower cost
and estimated net releasable value
except stocks of scrap/rejects, which are taken at nil va lue and recognized on sale, obsolete, defective and unserviceable stocks are provided for. Cost in resort of work in-progre ss and finished good represented direct cost and an appropriate portion of fact ory overheads which are incurred in bringing them to their present location and condition. REVENUE RECOGNITION
Sales are stated exclusive of sa les tax, excise duties, se rvice taxes and net of rebates and discount. Revenue is recognised when the property and all the significant risks and rewards of ownershi p are transferred to the buyer or no significant risks and rewards of ownershi p are transferred to the buyer or no significant uncertainty exists regarding the amount of considerat ion that is derived from the sale of good.
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•
Retirement Benefits Transaction and family pensions as a percentage of salary and wages for elgible employees contributed to the provident fund trust maintained at the various units of the company except relays division. Trivandrum where contributed are made directly to the regional provident fund commissioner.
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Gratuity liability on accrual basis at all the closed divisions of the company.
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Leave encashment is paid/provided for as per the rules of the company and accounted for on cash basis.
Foreign Currency Transactions •
Transactions in foreign currency are recorded at the rate of exchange prevailing on the date of transactions.
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All exchange difference are deal with in the profit and loss account except those relating to acquisition of fixed assets, which are adjusted to the cost of assets.
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Foreign currency assets and liabilities other than those for financing fixed assets and outstanding as at the close of the year, and resul ting gains/losses where they are covered by forward foreign exchange contracts in which case where they are covered by forward foreign exchange contract in which case these are translated at the contracted rate of exchange and the resulting gains/losses are recognized in the profit and loss account over the life of the contract.
Accounting for Taxes on Income
Provision for income tax is made on the basis of estimation, considering various provisions of the income tax Act 1961. Deferred tax for timing difference between the book and the tax profit for the year is accounted for using the tax rate and laws that have been substantively enacted as of the balance sheet date. Differed tax assets arising from timing difference are recognized and carried forward only if there is reasonable/virtual certainty they will be realised in future and reviewed for the appropriateness of their respective carrying value at each balance sheet date.
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Research and Development Expenditure Expenditure on research and developm ent is charged to profit and loss account.
Provision, Contingent Liabilities And Contingent Assets A provision is made based on relia ble estimate when it is probable that an out flow of resources embodying be nefit will be required to settle an obligation. Contingent lia bilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and to the extend not provided for, are disclosed in the notes to the accounts. Contingent assets are not recognised or disclosed in the financial statement.
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WORKING CAPITAL CYCLE OF ALIND
Finished goods
Sales
Production
Profit
Raw materials
Figure no: 8
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STRUCTURE OF FINANCE DEPARTMENT
FINANCE MANAGE
CHIEF ACCOUNTS
CHIEF OF CASHIER
JUNIOR ACCOUNTANT
CLEAKS
Fig no: 9 69
CHAPTER 6 PERFORMANCE ANALYSIS OF ALIND
SWITCHGEAR LTD
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6.1 SWOT ANALYSIS STRENGTH Good and adequate manpower
and young staff/workmen with good average
period of employment, low labour turnover. Quality machines-imported/indigenous. Logistically located land with adequate space f or expansion and operation. Infrastructure availability-building, power, water. Technical knowhow of experienced staff. Pollution free process. Government support/job security.
WEAKNESSES Shortage of working capital Low market share due to lack of market penetrati on techniques. Lack of optimum capacity utilization. Lack of career development as far as junior staff are concerned. Certain machines and technology used are either obsolete or outdated. Lack of research and development. Lack of modern marketing techniques. Lack of modern sophisticated cost effective manufacturing methods.
OPPORTUNITIES The company’s new product like transformer opens a big futur e and a big market
in India and also to the KSEB.
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The aim of the company is to meet global standards. This provides the opportunity
to create world-class products. Indian railway is a big customer of ALUMINIUM INDUSTRIES LTD
(ALIND), therefore the expansion of IR is a great opportunity.
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th
After failing to meet the power generation targets of 11
five year plan, the
central government id depending upon th e private sector to augment power th
generation by 50000MW in the first two years of the 12 five year plan.
THREATS High dependence on KSEB and Indian railwa y for order. Highly organized professional groups in marketing and their cartels. Changing in technology. Cost of raw materials.
6.2 PORTERS FIVE FORCE ANALYSIS Porters five force analysis is a framework for the industry analysis and business strategy development developed by the Mich ael E. Porter of Ha rvard business school in 1979. It draws upon industrial organizatio n economies to drive five forces that determine competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An “unattractive” industry is on in which the co
mbination of these five forces acts to
drive down overall profitability. A very unattractive industry would be one approaching “ pure competition” in which available profits for all firms is given down to zero.
Porters five force include Three force from “horizontal” competiti on: threat of subs titute products, the
threat o established rivals and the threat of new entrants. Two forces from vertical competition: the bargaining power of supplies and
the bargaining power of customer. The five forces analysis is just one part of the complete porter strategic models. The other elements are the value chain and the generic strategies. The five forces are; The threat of the entry of new competitors
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•
The threat of competitive rivalry
•
The threat of substitute products or services
•
The bargaining power of buyers
•
The bargaining power of supplier
PORTERS FIVE FORCE MODEL OF SWITCHGEAR INDUSTRY 1. THREAT OF NEW ENTRANTS Threat of new entrants is major aspect of the five forces. In the switchgear industry, this is generally a very low threat. Factors that are restraint include shortage of power supply as well as the increase in interest rate caused by inflation. Another factor is uncertainty and low pace of reforms. Socio-political issues and inadequate infrastructural setup delays foreign investment on switchgear industries, macroeconomic challenges constrain private and public finding. Switchgear industry is also affected by the spurious market.
2. RIVALRY OR COMPETITION AMONG EXISTING FIRM Competition in the market can be termed as moderate. If a firm would decide to leave an industry it would incur huge losses, so most of the time it eit her bankrupts or stays in automotive industry for the lifetime. At present ALIND switchgear ltd is only price competition between the existing firms. Major market participants are focusing on maintaining their current market shares. Participants are more concentrating on importing the quality of product through introducing new technology rather than on pressure on its vital technological advances protect company from competition.
3. BUYERS BARGAINING POWER
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Buyers in the market can be termed as moderate to high. Buyers are price sensitive and have various option because of competition. Major (project one time) and repeated buyers tend to have a high negotiating power. However sometimes buyers cannot make independent decision. They are bound to buy
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certain company’s switchgear, which is recommended and insisted by the consultant else recommende d by the ultimate user sp ecification. Certain project need highly customized switchgear industry is highly price sensitive. In switchgear industry customers have the ab ility to put their firm under pressure.
4. THREAT OF SUBSTITUTE PRODUCTS The threat of substitute is low. A substitute product doesn’t make much harm on switchgear industry. Overall quality, reli ability and safety of switchgear are determined as a mandatory strategy for success, because switchgear products are mainly required for general protection as well as switching. So it is not easy for the substitute products to pr ove its capacity in this se gment. Switching cost of buyer for a product is so high and also it may depreciate quality.
5. SUPPLIERS BARGAINING POWER Bargaining power of suppliers is low. In switchgear industry doesn’t exert much pressure on the firm because substitute inputs available for this industry is very low and intensity of competition among suppliers is also high. All these factors make the bargaining power of the suppliers low in switchgear industry.
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Chapter 7 Findings, Conclusion and Suggestions
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7.1 FINDINGS The findings of the study are At present the company is in loss due to lack of proper management. No employee participation in decisions. When compared to earlier periods, the level of production has not improved. The major customer for the company is Indian railwa y. Increased employee absenteeism. Absence of time management. Lack of modern technology. A good MIS network. Even if they have a good MIS, paper work is engaged for most of the
activities. Traditional marketing technique. A systematic production unit. Delay in decision. This sector has good scope and growth. No exploration of new market. No new product developments.
Less communication with the brands of the company .
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7.2 CONCLUSION The company is manufacturing a very
high quality of ci rcuit breaker and
transformers compared to the industry standards and are having very good reputation. The company has grown in a ve
ry healthy pace. This is due to the
good employee morale than has been deve loped in the company right from the beginning and also because of the excellent managerial capabilities of the middle level management. The relationship maintained in the work force is excellent and the company has got a good plant environment with the good technology and machinery. From the organization study conducted in ALIND, the functioning and the activities of the company is studied. It is found that the company is bound to follow rules and regulation to avoid fa vouritism and corruption. The chance of corruption is less in this company. The t op management is very strict about the same. There is low stress and high job security. There is above average employee retention in the company. Which ensure the availability of experienced hand. It is bound to take time to follow the decentralized management system. Resistan ce to change and low adaptability in different situations is a drawback. Not much important is given to long term goals.
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7.3 SUGGESTION Ensure employers participation in decision making. Job rotation will improve the productivity of work force. Encouragement and support to the employers to achieve the target. Effective measures to control absenteeism. Encourage synergy through teamwork.
Employer -employee relationship.
Transparency & better communication. Fully capacity utilization & diversification. Efficient and effective marketing. Market survey by engaging professional agencies. Regular scanning of news papers/bulletin/internet. Direct enquiry with customers. Vendor registration-private/ state/bulletins/internet. Adhere to production norms. Diversity based on market needs to achieve profitability/forecasting. Demands and technology advancement and modernization.
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