Sud-Chemie India Pvt.ltd OS Report

AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.

CHAPTER –I INTRODUCTION

Page |1 ILAHIA SCHOOL OF MANAGEMENT STUDIES


1. INTR INTROD ODUC UCTI TION ON

The planned coordination of people and their joint efforts for the achievement of the specific goals is known as an organization. The organization study involves the study and structure of its various departments. The structure of an organization is very important and it is interesting to have a study up on Süd -Chemie India Pvt. Ltd which has very large and stable structure and also it is a profit attaining organization which has a highly successful growth. SüdSüd-Ch Chem emie ie Indi Indiaa is enga engage ged d in the the manu manufac factu turi ring ng of cataly catalysts sts for for vario various us applications, having two manufacturing facilities. One in Cochin (Kerala) and the other in Baroda (Gujarat). Manufacturing operation was started in 1970. Both the units and the R&D division are ISO 9001:2000 and ISO 14001 certifie d. The company was registered in 1969 as Catalysts and Chemicals India (West Asia) Pvt. Ltd. The name was first changed to United Catalysts India Ltd. and then to Süd-Chemie India Ltd., consequent to change in name of the parent company. Manufacturing operations at Cochin unit has started in 1970. Baroda unit was started in 1978. The Company has got marketing offices at Delhi and Bombay. The company has been catering to the Syngas catalyst requirements of almost all the fertiliser manufacturing companies in India. They are market leaders for Syngas catalysts in India. India. Refine Refinerie riess and Petroc Petrochem hemical ical indust industries ries are also using using their their cataly catalysts. sts. With With the introduction of MIDREX catalysts they started meeting the requirements of Sponge Iron Plants also. Now Süd-Chemie India has started feeding to the highly competitive automobile sector also with our Catalytic Converters for two and three wheelers as OEM suppliers.



1.2 SCOPE OF STUDY The organization study encompasses the entire functioning of the organization which includes includes the nature nature of the business business it is involved. involved. About the company’s company’s current current scenario, scenario, the departmental segregation created for the implementation of plans and procedures, the current branches that it controls and the future expansion plans which includes both the national and international markets. Moreover the needs to conduct an organizational study lies in the fact that that they they prov provid idee an in dept depth h unde underst rstan andi ding ng of what what a comp company any is all abou aboutt and and the the understanding factor of its existence. •

The day to day activities of the organization

•

Departmental functions

•

The organizational and departmental structures

•

An understanding about services provided by organization

•

The company and its incorporation

1.3 OBJECTIVE OF THE STUDY To familia familiarize rize with with the functi functioni oning ng Süd -

•

Chemie India Pvt. Ltd.

To

•

familiarize

with

the

different

departments in the organization and their functions To unde unders rsta tand nd how key key fun functio ction ns are are

•

performed in the organization To understand how information is used in

•

the organization for decision making at various levels. To

•

familiarize

with

the

process

of

recruitment and selection of manpower


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. To know about the financial position of the

•

organization •

To know about its future ventures

•

To relate theory with practice.

1.4 LIMITATIONS OF THE STUDY 1. Organi Organizati zation on was reluctan reluctantt to disclos disclosee matters matters related related to the intern internal al affairs affairs of the company. 2. The study study was conduc conducted ted mainly mainly through through intervie interviews ws & interac interactio tions, ns, and chances chances of bias may exist. 3. Non-av Non-avail ailabi ability lity of of data within within the the limited limited time time 4. Inco Inconv nven enie ienc ncee of emplo employe yees es 5. Study Study was was based based on on person personal al limitat limitation ions. s.



CHAPTER -II INDUSTRY PROFILE COMPANY PROFILE PRODUCT PROFILE



2. INDUSTRY PROFILE The global chemical industry forms the fabric of the modern world. It converts basic raw materials into more than 70,000 different products, not only for industry, but also for all the consumer goods that people rely on in their daily life. The modern chemical industry is divide divided d into into four four broad broad catego categories ries,, compri comprisin sing g basic basic chemic chemicals, als, life life science sciences, s, special specialty ty chemic chemicals als and consum consumer er produ products. cts. Its outsta outstandi nding ng success success is largely largely due to unceasi unceasing ng scientific and technological breakthroughs and advances, which have led to the development of new products and processes. In the chemical industry and the industrial research, catalysis plays an important role. The The differ different ent catalys catalysts ts are in constan constantt develo developme pment nt to fulfil fulfilll econom economic, ic, politic political al and environmental demands. When using a catalyst it is possible to replace a polluting chemical reaction with a more environmental friendly alternative. Today, and in the future this can be vital for the chemical industry. In addition it’s important for a company/researcher to pay attention to the market development. If not a company’s catalyst is continually improved, another company can make progress in research on that particular catalyst and gain market shar share. e. For For a compa company ny,, a new new and and impr improv oved ed catal catalys ystt can can be a huge huge adva advant ntag agee for for a competitive manufacturing cost. It’s extremely expensive for a company to shut down the plant because of an error in the catalyst, so the correct selection of a catalyst or a new improvement can be the key to industrial success. To achieve the best understanding and development of a catalyst it is important that differe different nt special special fields fields work work togeth together. er. These These fields fields can be: organi organicc chemistr chemistry, y, analy analytic tic chemistry, inorganic chemistry, chemical engineers and surface chemistry. The economics must also be taken into account. One of the issues that must be consider is if the company should use money on doing the catalyst- research themselves or buy the technology from someone else. As the analytical tools are becoming more advanced, the catalysts used in the industry are improving. improving. S Some of the large chemical processes that use catalysis today are the production of methanol and ammonia. Both methanol and ammonia synthesis take advantage of the watergas

shi shift

reacti ction

and hetero heterogen geneou eouss

catalys catalysis is,,

while hile

other ther

chem chemic ical al

indu indust stri ries es

use homogenous catalysis. catalysis . If the catalyst exists in the same phase as the reactants it is said to be homogenous; homogenous; otherwise it is heterogeneous.



2.1 HISTORY Humans have known about catalysis for many centuries, even though they knew nothing about the chemical process that was involved. The making of soap, the fermentation of wine to vinegar, and the leavening of bread are all processes involving catalysis. One of the first first formal formal experi experimen ments ts on cataly catalysis sis occurr occurred ed in 1812. 1812. Russia Russian n chemist chemist Gottli Gottlieb eb Sigism Sigismund und Constan Constantin tin Kirchh Kirchhof of (1764– (1764–183 1833) 3) studie studied d the behavi behaviour our of starch starch in boilin boiling g water. Under most circumstances, Kirchhof found, no change occurred when starch was simply boiled in water. But adding just a few drops of concentrated sulphuric acid to the boiling water had a profound effect on the starch. In very little ti me, the starch broke down to form the simple sugar known as glucose. When Kirchhof found that the sulphuric acid remained unchanged at the completion of the experiment, he concluded that it had simply played a helping role in the conversion of starch to sugar. The name catalysis was actually proposed in 1835 by Swedish chemist Jöns Jakob Berze Berzeli lius us (177 (1779– 9–18 1848 48). ). The The word word come comess from from two two Greek Greek term terms, s, kata (for (for "down" "down")) and lyein (for "loosen"). Berzelius used the term to emphasize that the process loosens the bonds by which chemical chemical compounds are held together. The first time a catalyst was used in the industry was in 1746 by J. Roebuck in the manufacture of lead chamber sulfuric acid. Since then catalysts have been in used in a large portion of the chemical industry. In the start only pure components were used as catalysts, but after the year 1900 multi-component catalysts were studied and are now commonly used catalysts in the industry today.



2.2 CATALYSIS Catalysis is the change in rate of a chemical reaction due to the participation of a substance substance called a catalyst. catalyst. Unlike Unlike other reagents other reagents that participate in the chemical reaction, a cataly catalyst st is not consumed consumed by the reactio reaction n itself. itself. A cataly catalyst st may partic participa ipate te in multip multiple le chemic chemical al transfor transformat mation ions. s. Cataly Catalysts sts that that speed speed the reactio reaction n are called called positi positive ve cataly catalysts. sts. Subs Substa tanc nces es that that slow slow a cataly catalyst' st'ss effec effectt in a chem chemic ical al reac reactio tion n are are calle called d inhibitors. inhibitors. Substances that increase the activity of catalysts are called promoters, and substances that deactivate catalysts are called catalytic poisons. Cataly Catalytic tic reactio reactions ns have have a lower lower rate-li rate-limit miting ing free energy energy of activat activation ion than than the corresponding uncatalyzed reaction, resulting in higher reaction rate at the same temperature. Howev However, er, the mechan mechanisti isticc explan explanati ation on of cataly catalysis sis is comple complex. x. Cataly Catalysts sts may affect affect the reac reacti tion on envi enviro ronm nment ent favor favorab ably ly,, or bind bind to the the reag reagen ents ts to polar polariz izee bond bonds, s, e.g. e.g. acid catalysts for reactions of carbonyl of carbonyl compounds, or form specific intermediates that are not produced

naturally,

such

as

osmate esters in osmium

tetroxide-

catalyzed dihydroxylation of alkenes of alkenes,, or causelysis of reag reagen ents ts to reac reacti tive ve form forms, s, such such as atomic hydrogen in catalytic hydrogenation. hydrogenation. Kinetically, Kinetically, catalytic reactions are typical chemical reactions; i.e. the reaction rate depends on the frequency of contact of the reactants in the rate-determining step. Usually, the catalyst participates in this slowest step, and rates are limited by amount of catalyst and its "activity". In heterogeneous catalysis, the diffusion of reagents to the surface and diffusion of products from the surface can be rate determining. Although catalysts catal ysts are not consumed by the reaction itself, they may be inhibited, inhibited, deactivated, deactivated, or destroyed destroyed by secondary processes. In heterogeneous catalysis, typical secondary processes include coking where the catalyst becomes covered by polymeric side side produ products. cts. Additi Additiona onally lly,, hetero heterogen geneou eouss cataly catalysts sts can dissolve into the solution in a solid–liquid system or evaporate in a solid–gas system. Catalysis is the single most important interdisciplinary technology in the chemical industry. industry. More than 85 % of all today’s today’s chemical products products are produced using using catalytic catalytic processes. However, the importance of catalytic processes is not limited to the chemical industry. They also play a central role during the processing of raw materials in refineries, during the production of energy e.g. in fuel cells and batteries, as well as in terms of climate and environmental protection.



2.3 INDUSTRIAL APPLICATIONS Today catalysts are used in untold numbers of industrial processes. For example, the commercially important gas ammonia is produced by combining nitrogen gas and hydrogen gas at a high temperature and pressure in the presence of a catalyst such as powdered iron. In the absence absence of the cataly catalyst, st, the reactio reaction n betwee between n nitrog nitrogen en and hydroge hydrogen n would, would, for all practical purposes, not occur. In its presence, the reaction occurs quickly enough to produce ammonia gas in large quantities. Cata Cataly lyst stss are are the the work workho hors rses es of chem chemic ical al tran transf sfor orma mati tion onss in the the indu indust stry ry.. Approximately 85–90 % of the products of chemical industry are made in catalytic processes. Catalysts are indispensable in 

Production Production of transportatio transportation n fuels in one of the approximately approximately 440 oil refineries refineries all over the world.



Production of bulk and fine chemicals in all branches of chemical industry.



Prevention of pollution by avoiding formation of waste (unwanted byproducts).



Abatement of pollution in end-of-pipe solutions (automotive and industrial exhaust). A cataly catalyst st offers offers an altern alternativ ative, e, energe energetica tically lly favour favourabl ablee mechan mechanism ism to the non

cataly catalytic tic reactio reaction, n, thus thus enabli enabling ng process processes es to be carried carried out under under indust industria rially lly feasibl feasiblee conditions of pressure and temperature. A catalyst accelerates a chemical reaction. It does so by forming bonds with the reacting molecules, and by allowing these to react to a product, which detaches from the catalyst, and leaves it unaltered such that it is available for the the next reaction. In fact, we can describe the catalytic reaction as a cyclic event in which the catalyst participates and is recovered in its original form at the end of the cycle.

1. AMMO AMMONI NIA A PROD PRODUC UCTI TION ON Ammonia is used mostly to produce fertilizer. It is also used as refrigerant in largescale refrigeration equipment and in the production of detergents. Ammonia is produced in a process known as the Haber process, process , in which nitrogen and hydrogen react in the presence of an iron catalyst to form ammonia. The hydrogen is formed by reacting natural gas and steam at high temperature temperaturess and the nitrogen is supplied supplied from the air. Other gases (such (such as water


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. and carbon dioxide) are removed from the gas stream and the nitrogen and hydrogen passed over an iron catalyst at high temperature and pressure to form the ammonia

2. AUTO AUTOMO MOTI TIVE VE The catalysts (Catalytic Converter) remove harmful nitrous gases and carbon particles from the engines exhaust gas, greatly reducing pollution, and allowing them to meet the high environmental standards of the future. Automobile catalyst is divided into Three Way Catalyst(TWC) for gasoline fuelled cars and oxidation catalyst for diesel cars. TWC is named from the meaning of ‘simultaneous reaction with 3 harmful elements’, and the three harmful substances are CO, HC and NOx. These These three three subs substa tanc nces es have have thei theirr uniq unique ue harm harmfu full chara charact cteri eristi stics; cs; CO phag phagoc ocyt ytise isess haemoglobin carrying oxygen in blood, HC causes hallucination similar to bond, and NOx causes dyspnoea dyspnoea by stimulating stimulating the mucous membrane membrane of the respiratory respiratory system. Therefore TWC is necessary for automobiles not to discharge harmful exhaust.

3. INDUST INDUSTRIA RIAL L PRODUCTI PRODUCTION ON OF HYDROGE HYDROGEN N In oil refineries, large amounts of hydrogen are used in the conversion of crude oil into end products such as gasoline, jet fuel, and diesel. This is why oil refineries often have a separate hydrogen plant. Catalysts help to make hydrogen from natural gas and oil.

In refi refine neri ries es acro across ss the the worl world, d, "on"on-pu purp rpos ose" e" hydr hydrog ogen en capa capaci city ty is incr increa easi sing ng as site site hydr hydrog ogen en dema demand nd reac reache hes s limi limits ts,, due due to tigh tighte terr fuel fuel specifications, the processing of heavier and sourer crudes, increasing need for lighter crude oil products and strong demand for chemical intermediates. Catalysts are used for hydrogen production via steam reforming, and are used for hydrogen production using a range of feedstock’s, from natural gas and refinery off-gas to LPG and naphtha’s. Hydrogen is mainly used for the conversion of heavy petroleum fractions into lighter ones via the process of hydro-cracking of hydro-cracking and other petroleum fractions (dehydrocyclization (dehydrocyclization and the arom aromati atizat zatio ion n

proc process ess)).

It

is

also

required

for

cleaning

fossil

fuels

via hydrodesulphurization.


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. Hydrogen is mainly used for the production of ammonia of ammonia via Haber process. In this case, the hydrogen is produced in situ. Ammonia is the major component of most fertilizers. fertilizers.

4. OIL OIL REF REFIN INER ERIE IES S When a refinery treats oil in the production of transportation fuels, numerous toxic and environmentally damaging impurities are removed. Catalysts are used for the production of diesel with ultra-low sulphur content. They are also used to make biofuels, for instance, by converting biomass such as woodchips and household waste into diesel. The oil we used to make “Petrol” (gasoline, or motor motor spirit) and other products, start out as raw black petroleum. petroleum. It cannot be used as it is, straight from undergroun underground. d. It must be changed into the specific chemicals that people use. This process of changing petroleum into useful products is called refining. The modern oil refinery is a large and complicated factory. Automatic control of the various stages is efficient and safe. Teams of workers are needed to keep the refinery machinery “running” smoothly.

5. SULP SULPHU HURI RIC C ACID ACID Catalyst are used to produce sulphuric acid. Sulphuric acid is the chemical product most most widely widely produce produced d and sold in the world. world. Most Most of it is used used in the manufa manufactu cture re of fertiliser. fertiliser. Sulphur Sulphur is present as an impurity in many raw materials. materials. When producing producing oil, steel, and other metals, this sulphur is released as sulphur dioxide in various exhaust gases, this sulphur dioxide is converted into sulphuric acid, which transforms it into a saleable product.

2.4 COMPETITORS

GLOBAL SCENARIO BASF(CHEMICAL COMPANY) BASF SE is the largest diversified chemical company in the world and is headquartered

in Ludwigshafen, Germany. The BASF Group comprises subsidiaries and joint ventures in


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. more more than than 80 coun countr trie iess and and opera operate tess six six integ integrat rated ed prod produc ucti tion on sites sites in Euro Europe pe,, Asia Asia,, Australia, America and Africa.

JOHNSON MATTHEY Johnson Matthey is a British multinational chemicals chemicals and precious and precious metals company

headquartere headquartered d in London, United Kingdom Kingdom.. founde founded d almost almost 200 years years ago

Techno Technolog logy y

leadership forms the basis of our strategy to deliver superior long term growth

HALDOR HALD OR TOPSOE TOPS OE (We are known for our commitment to catalysis – a commitment we share with our clients.)

Founded in 1940 on the brink of the Second World War, Dr. Haldor Topsoe started the company based on a commitment to heterogeneous catalysis. The company is governed by the notion that only through fundamental science can we cont contin inue ue to offer offer our our clie client ntss the the best best,, and and the the past past 60 years ears offer offer an on-g on-goi oing ng tale tale of improving catalysis.

2.5 INDIAN SCENARIO

PROJECTS & DEVELOPMENT INDIA LIMITED (PDIL) PROJECTS & DEVELOPMENT INDIA LIMITED (PDIL) , a Government of India Undertaking having ISO 9001:2008 Certification, is a Pioneer Consultancy and Engineering Organization in India with experience of over 40 years in Planning, Design, Engineering, Procurement, Project Management, Construction & Commissioning of Fertilizer Project and Allied Chemical Plants in India and abroad. PDIL manufactures and supplies a wide range of proven catalysts developed entirely on its own technical know-how. These catalysts are performing excellently in almost all fertilizer plants in India. PDIL catalysts have also been exported to European and Middle Eastern Countries.


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. PDIL came into existence in 1950s and most of the fertilizer plants in India have utilized the expertise and experience of PDIL. PDIL not only engineers the plant for its clients but also execute projects to revamp, modernize and enhance capacities of these plants from time to time, besides advising on operational and technical difficulties faced by them. Over Over the last six decade decades, s, PDIL PDIL has render rendered ed the entire gamut gamut of engine engineeri ering, ng, project project management, construction and commissioning supervision of Greenfield and expansion of 25 ammonia and 38 urea fertilizer plants. PDIL has conducted feasibility studies, demand assessment studies, environmental impact assessment studies, etc for various clients. PDIL is also an approved third party inspection agency for Indian Oil Corporation, Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited and BHEL among others.

2.6 COMPANY PROFILE

INTRODUCTION SUD-CHEMIE INDIA PVT. LTD. is engaged in the manufacture of catalysts for

various applications. Catalyst is a chemical substance used for increasing or decreasing the rate of chemical reaction and this process is known as Catalysis. The catalyst may participate in multiple chemical transformations. Catalysts that speed the reaction are called positive catalysts. Catalysts that slow down the reaction are called negative catalysts or inhibitors. The The main main acti activi vitie tiess of SudSud-Ch Chem emie ie Indi Indiaa P. Ltd. Ltd. are are manu manufac factu turin ring, g, sales sales and and technical services related to catalysts for various applications in fertilizers, petroleum and petrochemical industries. The company has two manufacturing units in India, one in Cochin and the other in Baroda (Gujarat). The Cochin plant is situated on the banks of river Periyar, opposite to FACT, Udyogmandal Division and the locality is known as Binanipuram which is part of Edayar Edayar Industrial Industrial Development Development Area. The main products products are C12 series series of high temperature shift catalysts, C18 series of low temperature shift catalysts, C7 series of sulphur absorbents and Vanadium Pent Oxide catalyst for Sulphuric acid manufacture.

ORIGIN Page |13 ILAHIA SCHOOL OF MANAGEMENT STUDIES

AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. The The comp compan any y was was foun founde ded d by Sri Sri Faza Fazall Lall Lalljee jee and and Sri Sri Alta Altaff Lall Lalljee jee and and was was registered in 1969 as Catalysts and Chemicals India (West Asia) Pvt. Ltd. The name was first changed to United Catalysts India Ltd. and then to Sud-Chemie India Ltd., consequent to change in name of the parent company. Manufacturing operations at Cochin unit has started in 1970. Baroda unit was started in 1978. The company has been catering to the Syngas catalyst requirements of almost all the fertiliser manufacturing companies in India and is market leaders for Syngas catalysts in India. Refineries and Petrochemical industries are also using our catalysts. With the introduction of MIDREX catalysts they started meeting the requir requireme ements nts of Spong Spongee Iron Iron Plants Plants also. also. Now they have have started started feeding feeding to the highly highly competitive automobile sector also with our Catalytic Converters for two and three wheelers as OEM suppliers.

GUIDED BY THE GROUP VISION Sud-Chemie India is guided by the vision and mission of Sud-Chemic AG, Germanie the parent parent company company..

Sud-Ch Sud-Chemi emiee is a highly highly-inn -innova ovativ tive, e, listed listed,, specia specialty lty Chemi Chemicals cals

Company head quartered in Munich. With its two division division of Adsorbents and catalysts, the Sud-Chemie Group, which has around 4,800 employees, generates total sales of approx. 1 billion Euros. Sud-Chemie holds an extremely strong position on global markets, almost al most 80 percent of group sales being realized with customers outside Germany. It systematically exploits the potential offered by fast-growing regions, notably in Southeast Asia and the Middle East.

STRATEGY Sud-Chemie continuously pursues its goal of sustained organic growth coupled with a signif significan icantt impro improvem vement ent in profita profitabil bility ity..

Based Based on organi organicc growth growth alone, alone, the Group is

aiming to reach sales of over 1.2 billion euros and above average increasing EBITDA and EBIT margins. Sud-Chemie’s strategy for realizing these financial targets resets on the four pillars of technology and innovation, customer loyalty and a nd orientation, process optimization and also portfolio and investment management.



BOARD OF DIRECTORS: SUD-CHEMIE INDIA 

DR. HANS JURGEN WERNICKE – CHAIRMAN



DR. HANS JOACHIM MULLER – DIRECTOR



MR. VIKTOR BERNHARDT – DIRECTOR



LALLJEE – MANAGING DIRECTOR



MR. ISKANDER A. LALLJEE – JT. MANAGING DIRECTOR



MRS. HAMIDA A. LALLIJEE – WHOLE TIME DIRECTOR

CULTURE AND VALUES •

To conduct the business with integrity

•

To act with honesty and trust towards business partners, employee and community; to treat everyone with dignity, respect and fairness.

•

To respect the laws of the country and observe them in letter and spirit; to take pride in paying taxes.

•

To satisfy customers requirements by providing them good quality products and services.

•

To work with suppliers towards improvement of their products.

•

To respect nature and adopt least polluting polluting processes processes and practices; practices; to use minimum resources.

•

To recognize that every employee has talent and potential; to provide opportunity for every individual to develop

•

To implement safe work practices; to avoid causing harm to the community.

MISSION “The Sud-Chemie group constantly endeavors to achieve customer satisfaction by supplyin supplying g quality products products and services. services. It has been in this field for almost four decades. decades.


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. Most of the customers customers have been with with this organizatio organization n all these years. The company company is proud that it could cater to its customers varied requirements arising from time to time”. Sud-Chemie Sud-Chemie’s ’s products products ensure sparing sparing use of energy and water as natural natural resources, resources, enhancing enhancing the quality of life for both humans and the environment. environment. Adsorbents Adsorbents guarantee guarantee customized products with optimal properties in the sectors of beverages, consumer goods, packaging and foundries. Sud-Chemie’s catalysts are essential for efficient chemical and petrochemical processes and offer optimal solutions in the areas of hydrogen production and emission control.

SPAN OF CONTROL Sud-Ch Sud-Chemi emiee India India has got two market marketing ing offices offices locate located d at Delhi Delhi and Mumbai Mumbai.. Expor Exports ts are mainly mainly handled handled through through Mumbai Mumbai & Cochin Cochin..

Import Importss for Cochin Cochin units are

directl directly y manage managed d and requir requireme ement nt of Baroda Baroda unit unit is manage managed d throug through h Mumbai Mumbai Office. Office. Purchases are handled at Cochin, Mumbai and Baroda Offices. Accounting is done at all offices and Corporate Finance and Corporate HRD matters are handled at Cochin. Corporate Secretarial Secretarial matters are also handled from Cochin. Cochin. R & D works works are mainly concentrated concentrated at Cochin Cochin;; howeve howeverr certain certain works works are undepend undependabl ably y handle handled d at Baroda Baroda also.

Managi Managing ng

Director Director and Joint Managing Managing Director Director are stationed at corporate corporate office at Delhi. Factory related matters are handled at Cochin and Baroda for the respective manufacturing units.

COCHIN UNIT: This unit was started in 1970. 1970. Almost 25-30% of entire entire production of Sud-Chemied Sud-Chemied Indi Indiaa is carri carried ed out out thro throug ugh h Coch Cochin in unit unit..

This This unit unit is equi equipp pped ed with with sophi sophist stic icate ated d

machineries and a well setup quality assurance laboratory. laboratory. Cochin unit of Sud-Chemie Sud-Chemie has a total total number number of 153 employ employees. ees.

Produc Productio tion n process process is contin continuou uouss throug throughou houtt the year.

Supervisors and unskilled labours works in three shifts, 8 am to 4 pm, 4 pm to 12 am and 12 am to 8 am. For the managers and executives the office time is between 9 am to 5.45 pm.

GROWTH PATH The organization was started in 1969 with one catalyst, i.e. High temperature shift catalyst for ammonia industry and now, supplying more than 76 products, covering complete


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. chemicals, chemicals, refinery, refinery, petrochemicals petrochemicals and automotive automotive industries. industries. Introduction Introduction of these new innovative products, not only increased the sales turnover of the company, but also saved huge foreign foreign exchange exchange to the country. country. Now all these products products are very well accepted accepted not only in India, but also all over the world. The growth can be felt while looking at the phenomenal growth in of sales turn over during during the last ten years. During During 1995-96 1995-96 the turnover turnover was 18.2 croes and 2005-06 2005-06 it is Rs.132 Rs.132 crores which is 600% growth growth in the last ten years. It is many folds higher higher than the average industry growth. growth. Last years turnover was about 330 Crores.

AWARDS SudSud-Ch Chem emie ie Indi Indiaa has has recei receive ved d a numb number er of award awardss and and reco recogn gnit itio ion’ n’ss for for its its manufacturing capabilities and export performance. •

Received ICMA Award in 1989 for outstanding role in developing Encilite-2

a high tech catalyst along with NCL and playing crucial role in the development of Albene technology successfully commercialized by Hindustan Polymers. •

Received ICMA Award in 1990 for exporting Knowledge based high tech

products in competition with world’s renowned companies. companies. •

Receiv Received ed from from CHEMEX CHEMEXCIL CIL certifi certificate cate of Merit Merit for outstan outstandin ding g export export

performance during 1992-93 •

QUALITY CERTIFICATIONS

•

R&D division of the company was certified ISO 9001 on 27.07.1999.

•

Cochin unit got its ISO 9002 certification on 18.06.1996.

•

Baroda unit got its ISO 9002 certification on 04.04.1997.

•

Cochin unit and R&D division has been certified ISO I SO 14001 on 08.08.2000.

•

Now all have been certified ISO 9001:2000 and ISO 14001 standard.



BUSINESS PERFORMANCES

The organization was started in 1969 with one catalyst, i.e. High temperature shift catalyst for ammoni ammoniaa industr industry y and now, now, supply supplying ing more more than than 76 produc products, ts, coverin covering g comple complete te chemicals, chemicals, refinery, refinery, petrochemicals petrochemicals and automotive automotive industries. industries. Introduction Introduction of these new innovative products, not only increased the sales turnover of the company, but also saved huge foreign foreign exchange exchange to the country. country. Now all these products products are very well accepted accepted not only in India, but also all over the world. The growth can be felt while looking at the phenomenal growth of sales turn over during the last ten years. During 1995-96 the turnover was 18.2 crores and 2005-06 it is Rs.132 crores which is 600% growth in the last ten years. It is many folds higher than the average industry growth.

The following table shows the sales turnover of the company for the past 3 years:

Table 3.2 Table showing sales turnover of Sud-Chemie for the past 3 years

Y e ar 2009-2010 2010-2011 2011-2012

Sales turnover 360 crores 305 crores 470 crores



2.7 PRODUCT PROFILE üd-Chemie India manufacture manufacturess a wide range of Süd-Chemie

catalysts catalysts for varied applications applications in

Fertilizer Industries, Refineries, Petrochemical Industries, Sponge Iron Industries and now for emission control in automobiles and stationary engines. Our products are the result of many years research and development work. The company continuously keeps on working for improving the quality of our products. As a result the activity levels, efficiency and life of the products have improved considerably over the years. Qualities of the products are continuously evaluated at the high tech laboratories of Süd-Chemie group so as to ensure that their products are of international standards. They sell their products in the domestic market as well as export to various countries including Europe, America, Iran, Libya, Japan and Indonesia. In fact, almost 50% of our turnover is from export.Our entry into the highly competitive automobile catalytic converter market and capturing of a sizeable share in the two wheeler catcon market in a very short span of three years is indicative of our high calibre and capability. And during this period itself we could make an entry into the European catalytic converter market (for cars).

MAIN PRODUCTS SL No

Real Name of Catalyst

Brand Name

Type

Application/Process

Shape

1

High Temperature shift Contrast

SHIFTMAX 120

C12

Carbon monoxide conversion

TABLET

2

Low Temperature Shift Contrast

SHIFTMAX 210

C18

Low Temperature Shift Carbon dioxide conversion

TABLET

Sulphuric Acid Catalysts

SULPHUR MAX

3

C116

For th the ma manufact factu ure of Sulphuric Acid by

Ribbed ring


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. extrudate Contact process

Table 2.1 showing the Main Products

CHAPTER -III ORGANIZATIONAL CHART ORGANIZATIONAL STRUCTURE DEPARTMENTS OF THE ORGANIZATION



3. ORGANIZATIONAL CHART

Board of Directors

CEO

OPERATIONS

CORPORATE

CORPORATE

QUALITY

FINANCE

HR

ASSURANCE

R&D

PRODUCTION DEPARTMEN T

SALES AND

HR

MANAGEMEN T SYSTEM STANDARDS

DISPATCH

DEPARTMEN

MAINTENANC

ACCOUNTS

PURCHASE

ENVIRONME

E

DEPARTMEN

DEPARTMEN

NTAL POLICY

IT DEPARTMEN STORES DEPARTMEN

NEW PRODUCT



Fig. 3.1 Organisational Chart

3.1 ORGANIZATION STRUCTURE The basic structure of Sud-Chemie Sud-Chemie India Pvt. Ltd involves involves issues such as how the work of the organization should be assigned among various positions, departments etc and also to accomplished the total organization objectives. Authority Authority arises because of official official positions of a person, his personal personal competence competence etc. it is the relationship between two individuals ie, superior and subordinate. The flow of this authority is known as top bottom authority. The real authority vests at the top level in the authority. The four basic structure forms are the functional structure, divisional structure, matrix structure and network structure.

FUNCTIONAL STRUCTURE Functional structure is the structure that groups people on the basis of their common experience and expertise or because they use the same resources.

DIVISIONAL STRUCTURE Divisional structure is that structure in which functions are grouped according the specific demands of products, markets or customers.

MATRIX STRUCTURE Matrix structure is that structure that creates dual lines of authority and combines functional and product departments.

NETWORK STRUCTURE It is the structure which is the cluster of different organizations whose activities are coordinated by contracts and agreements rather than formal hierarchy of authority. Sud-


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. Chemie Chemie India India Pvt. Pvt. Ltd

has a functi functiona onall structu structure. re. It is highly highly charac characteri terized zed by routin routinee

operating tasks, much formalized rules and regulations, tasks that are grouped into functional departments, centralized authority and narrow span of control of decision making that follows the chain of command. Then top level managers make all decisions and the lower level managers execute those decisions. Since everything is standardized and formalizes there is no much scope for flexibility. But at the same time creativity and innovations of employees are always welcomed.

3. 2 DEPARTMENTS OF THE ORGANISATION Organization structure is a pattern of relationship among various components or parts of the the orga organi niza zatio tion. n. The The basi basicc struc structu ture re invo involv lves es such such issue issuess as how how the the work work of the the organization will be divided and assigned among various positions, groups, departments etc. and also to accomplish the total organization objectives which will be achieved. The various departments in Sud-Chemie India Pvt. Ltd are as follows: •

•

•

•

•

OPERATIONS 

Production Department.



Maintenance Department

CORPORATE FINANCE 

Sales and Dispatch



Accounts Department

CORPORATE HR 

HR Department



Purchase Department



EDP Department



Stores Department

QUALITY ASSURANCE 

Management System standards



Environmental Policy

RESEARCH & DEVELOPMENT 

New Product Development



3.2.1 PRODUCTION DEPARTMENT

The The produc productio tion n departm department ent controls controls all the producti production on activi activities ties of the company company..

The

manufacturin manufacturing g activities activities of the company company are continued continued round the the clock in the year. This department department maintains maintains close contact contact with all departments. departments. Immediately Immediately on getting getting a new order the same is reviewed by CEO and manager production and based on that production is scheduled scheduled to meet the delivery requirement requirements. s. The production production manager manager is responsible responsible for smooth functioning of the production department and he reviews the actual and planned production on a daily basis. If any deviations are noticed appropriate corrective actions are taken.

Structure of Production department

CEO

Production Manager

Shift Incharge-1

Shift Incharge-2

Workmen Workmen ILAHIA SCHOOL OF MANAGEMENT STUDIES

Shift Incharge3

Page |24


Workmen

Fig. 3.2 Structure of Production Department

The Cochin manufacturing unit of Sud-Chemie India Pvt. Ltd. manufactures 3 catalysts:

i.

C-12 (I (Iron oxide catalyst)

ii.

C-18 (C (Copper zinc catalyst)

iii.

C-116 ( Va Vanadium pent oxide)

Applications

The catalysts C-12 and C-18 are used in various stages of Ammonia production. C-116 is used in Sulphuric Acid production. These 3 catalysts are those which are in continuous production in the factory. Apart from these, these, 36 other other cataly catalysts sts are also produced produced here. here. Theses Theses have have variou variouss applica applicatio tions ns like like catalysts which reduce CFC content in air conditioners, catalysts for hydrogen powered vehicles, etc.

C-12 Production Process

The basic ingredient ingredient for the production production of the catalyst catalyst C-12 is Ferrous Ferrous Sulphate (Fe 2SO4). It is greenish in colour.

Copperas tank preparation

The Fe2SO4 is diluted with water and made into a solution. This solution contains impurities which are made to segregate in a Filter Press.

Sulphur washing


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. The clear solution obtained from the Filter Press is precipitated. This contains a large amount of Sulphur content, which is reduced to a level of less than 150 ppm in a Membrane Press. This is called Sulphur washing and it involves filtration, centre washing, corner washing and squeezing. After squeezing, the moisture content of the output is reduced to 50%, and is obtained in the form of cakes.

Calcination

The cakes are then dried and made into lumps through the process of calcination. This is done in a Rotary Calciner, where hot air of up to 430 0C is blown over the cakes. Now the moisture content in the lumps is less than 5%.

Feed preparation

The lumps are stocked in a container called Lump container where they undergo ‘24 hours ageing’. After this they are powdered into the required size. Then water addition is done thereby increasing the moisture content from 5% to 12%, using Water sprayers. The resulting output is called Feed.

Tableting (Calcinations)

The next step is tableting where the feed undergoes calcination in a Band Dryer. This forms a part of the Tableting/Forming machine. Here moisture is reduced to up to 3% and tablets are formed.

Screening process

In the Screening machine, the output undergoes screening where any broken tablets/powder is segregated. Thus C-12 tablets are prepared. It takes a period of 4-5 days for the raw material to be transferred into finished product. The manufactured C-12 tablets are now sent to the QA (Quality Assurance) department where they are physically physically and chemically tested. Once the QA approval approval has been obtained, obtained, they are ready for despatch, depending on the customer order.



Copperas tank preparation (Fe2SO4

Sulphur washing (membrane Press)

Calcination-4300C

Feed Preparation

(Rotary Calciner)

TabletingCalcination (Band

Screening machine

Processed C12 tablets

Fig. 3.3 Production Production process of catalyst catalyst C-12

3.2.2 MAINTENANCE DEPARTMENT The maintenance department of Sud-Chemie is responsible for: •

Preventive maintenance

•

Handling breakdown issues

•

Ensure smooth production

•

Ensure availability of spares

•

Safety precautions

•

Statutory and legal requirements

Preventive Preventive Maintenance: Maintenance:

Preven Preventiv tivee mainte maintenan nance ce schedul schedulee for the entire entire 52 weeks weeks

throughout the year year is planned ahead and carried out. Schedules are prepared on the basis basis of criticality and nature of each equipment i.e. if an equipment is much important in the process


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. of produc productio tion, n, then then it will will be given given more more importa importance nce also also the freque frequency ncy of preven preventiv tivee maintenance maintenance will be high high for that machine. machine. For example example the tabulating tabulating machine machine and the forklifts are checked every day for its healthiness since these two are vital to carry out the operat operation ions. s.

As stated earlier earlier the frequency frequency of preven preventiv tivee mainte maintenan nance ce depend dependss on the

criticality criticality and nature, also the frequency frequency is revised if required. required. For example example if one machine machine undergoes more breakdowns than expected then its maintenance frequency will be revised to a higher level, if it was once every two week it may be revised to once in every week. Also if one machine shows less frequency in breakdowns then its frequency of maintenance will be lowered. lowered. In short according according to the performance performance of the machine machine the preventive preventive maintenance maintenance schedule will be prepared.

always given to production. production. Whenever any breakdown Break down issues: First priority is always occurs then it will be handled first rather than the scheduled maintenance. Every day a plant meeting is arranged with the personnel from production production department. In that meeting the root cause analysis will be done for every breakdown issues and necessary precautions will be taken to avoid the repetition of break downs.

Availability of Spares:

It is vital to ensure the availability of spares for any kind of

maintenance maintenance activities. activities. Maintenance Maintenance department department keeps a close contact with the purchase purchase department and stores for ensuring the availability of spares.

Safety Precautions:

For carrying out a maintenance work safety precautions must be

taken to avoid unnecessary accidents. For each work permits are requested to production depart departmen ment. t. It is their duty duty to isolate isolate the area and issue issue work permit permit.. All electri electrical cal and mechanical connections are isolated from the area under under work. After the completion of work comple completio tion n report report will will be issued issued to produc productio tion n departm department ent describ describing ing the works works done, done, manpower and spares used.

Statutory Statutory and legal requirements: requirements:

There are several legal requirements to be fulfilled in

order to continue continue using certain equipmen equipments. ts. Like in the case of boiler boiler annual maintenance maintenance


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. and testing testing are compulsory compulsory as stated by the Govt. Govt. (factories (factories and boilers act). Every two years, years, the ammonia tank should should be test for hydroxyl. hydroxyl. All the weighing weighing machines machines are to be tested for every year by the legal metrology department for accuracy. The The two execut executive ivess will will be carry carrying ing out the respecti respective ve mainten maintenanc ancee of equipm equipment entss and building. They maintain a log book which records all the works done by the department. Also Also fire extingu extinguish ishers ers are placed placed at respect respective ive areas. Normal Normally ly the supervi supervisor sorss in this department department function function in the general shift. shift. Also all the workers except except one will also work in the general shift. The excluded worker will have to take the night night shift and this rotate among workers. Structure of Maintenance department

Unit head, SCIL, EU

Senior manager

Deputy manager

Executive

Executive

Executive

Electrical

Electrical

Mechanical

Fig. 3.4 Structure of Maintenance Maintenance Department



3.2.3 SALES AND DESPATCH

Main activities of this department are to collect sales order from sales offices situated at Mumbai and Delhi. 80% of the total turnover of Sud Sud -Chemie is through export sales and we can say that Sud-Chemie is one of the major contributors among those who bring foreign currency currency into our nation. nation. The dispatch dispatch officer verifies verifies the purchase order, order, its terms and conditions of payment, delivery etc. and prepares a summary report on the quantities ordered. This summary report is forwarded to the production department through the head of the department to make available the product right at the time of delivery schedule.

Every day a contract meeting is convened with the production department and discusses the scheduled dispatches and also discuss the possibility of delay, if any, expected due to any technical technical reasons. He fixes the transporter transporter and prepare the documents documents to be accompanies accompanies with the invoices.

He will be having a thorough knowledge and all the documents to be supported for a dispatch. He makes follow up with the customer for the timely timely payment of the invoice. invoice.

In the case of a purchase order received from a customer is supported by letter of Credit opened by them, special care is taken to ensure that all the formalities and requirements of the L.C. are met with before and after dispatch dispatch of the consignment. consignment. Usually sales sales invoices based on L.C. are discounted with their banker immediately immediately after dispatch.

He is also in charge of the ware house functions and proper up-keep of products stored in the ware house. house. Proper Proper verification verification of stocks in ware house is one of the important important activities activities performed by him.


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. Structure of Dispatch department

Materials Manager

Assistant Manager, Dispatch Dept.

Support Staff

Support Staff

Fig. 3.5 Structure of Dispatch Department

Functions of Dispatch Department (Dispatch procedures) •

As soon as order is received, a contract review summary sheet is prepared.

•

Discrepancies in the order, if any will be communicate to M&TS.

•

Activities 1 & 2 above are normally completed on the day the order is received at EU.

•

In the case of L/C based orders, as soon as the L/C is received, it will be verified and discrepancies discrepancies if any are identified identified by Shipping Shipping Executive. Executive. He will sign it and forwarded the the same same alon along g with with a copy copy of orde orderr and and cont contrac ractt revi review ew summa summary ry sheet sheet to HOD HOD Shipping who also will verify it thoroughly and sign it.

•

All discrepancies will be taken up with the agent or the customer after checking up with M&TS.

•

Once Once the order order is receive received d dispat dispatch ch schedu schedule le will will be finaliz finalized ed in consul consultati tation on with with production. The date by which the product is to be ready, and other crucial dates and other requirements will be shown in the schedule.

•

Insp Inspec ecti tion on,,

wher wherev ever er requ requir ired ed is plan planne ned d

and and

arra arrang nged ed in cons consul ulta tati tion on with with

production/QA.



•

The dispatch dispatch schedu schedule le will will be update updated d as and when change changess are requir required. ed. Sample Sample attached.

•

Material will leave the factory only if all the documents are correct and completed as per the terms of the order (and L/C).

•

In case of discrepancy/deviation from the terms, material should move only with the permission of materials manager. A copy of the contract review summary showing the discrepancies/deviations from the terms of the order should got signed by the materials manager.

•

Invoice and other documents are prepared on the date the cargo moves out of the factory.

•

These documents are sent to the customer as per terms given in the PO or as per direction received from M&TS, normally within two days of dispatch.

•

For export shipment it will take about 5 days for sending the documents to customer.

•

For Iranian orders, where legalization of documents is required, it takes about 15 days for the documents to be submitted to the bank.

•

Dispatch details faxed to the customer on the same day of dispatch,

•

The following communication will take place before and after shipment.

a.

Befo Before re disp dispat atch ch – disp dispat atch ch plan plan inti intima mati tion on to cust custom omer er

b.

After dispatch – confirmation of dispatch

c.

Shipping details in in case of export

d. Docume Documents nts to custo customer mer and and all others others conce concerne rned. d.

•

Purchase Order Execution

a) Prep Prepar aree con contra tract ct review review b) To inform the customer for availability of the material, requirement of trucks and freight rate c) Select the drums drums for for dispatch dispatch and prepare prepare packing packing list d) Select the transpo transporter rter and inform inform the schedu schedule. le. e) Prepare Prepare shipping shipping marks marks and required required number number of labels. labels. f) Prepare Prepare invoice invoice and and all other other docume documents nts as per per purchase purchase order order terms. terms. g) To send dispatch dispatch intimati intimation on with scanned scanned copies copies of documents documents to customers customers and M&TS. M&TS. h) After completio completion n of a dispatch prepare prepare all original original documen documents ts and send to customer customer..


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. i) To foll follow ow up up safe safe deliv delivery ery of of the the mater material. ial. j) To inform number of drums drums and pallet requirement to palletizing contractor(if export) k) To send invoic invoicee and informati information on bill details details and other other required required docum document entss as per PO to CHA for arranging export. l) Insp Inspect ectin ing g the the cont contai aine nerr stuff stuffin ing g m) Information Information given given to central excise dept. for arranging arranging inspection. inspection. n) Prepare Prepare ARE-1 ARE-1 and and conduct conduct Central Central excise inspection. inspection. o) Prepare Prepare and fix hazardous hazardous labels labels in 5 sides of the contain container er if the material is hazardou hazardous. s.

3.2.4 ACCOUNTS & FINANCE DEPARTMENT

Chief designation is the Head of the department; he is responsible for arrangement of funds, proper utilization of it, fixation of credit limit to customers, fixation of credit limit from suppliers. suppliers. He is the chief official in reporting reporting all the major finance finance related activities activities to the managing director. The following are the sub departments which are directly directly controlled by him.

1.

Sales and dispatch

2.

Accounts

Functions of all these departments are carried out by the Assistant finance Manager (AFM) who will be directly reporting to the head of the department. AFM will be responsible for for the various functions that are performed by the sub departments.



Structure of Finance Department

GENERAL MANAGER FINANCE

DEPUTY GENERAL MANAGER

ASST. MANAGER FINANCE

SENIOR EXECUTIVE (Sales / Despatch)

EXECUTIVES

SENIOR EXECUTIVE

EXECUTIVES

Fig. 3.6 Structure of Finance Department

Functions of Accounts and Finance Department

The functions of the Accounts & Finance department relate to the following: •

Export and import

•

Domestic production and sales

•

Fund management

•

Investments

•

Statutory departments liaising (with sales tax authorities, central excise, RBI,

etc.) •

Group reporting (monthly & yearly)

•

Audit function (Internal audit, tax audit, department audit, group audit)



3.2.5 HUMAN RESOURCE DEPARTMENT

Structure of HR Department

Chief Manager HR

Senior Executive

Executive

Receptionist

Fig. 3.7 Structure of HR Department

Functions of HR department

1. Recruitment

It is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. Recruitment planning at Sud-Chemie is initiated either by future development plans or by any business improvement improvement plans (volume of business). business). Manpower separation and resignation of employees employees are also stimulating stimulating factors for recruitment. recruitment. Internally, Internally, recruitment recruitment is carried


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. out through through promotions promotions and transfers. transfers. Vacancies Vacancies mostly are filled by the leaving worker’s worker’s family family itself. itself. Other Other extern external al sources sources used used are adverti advertisem sement ent in newspa newspaper pers, s, employ employee ee reference, and advertising in company website.

2. Selection

It is the process of picking individuals who have relevant qualifications to fill jobs in an organizatio organization. n. Another Another definition definition says that selection selection means “trying “trying to fit an applicant to a particular job”, i.e., matching the job and the applicants.

At Sud-Chemie, post screening of applications, the candidates are to undergo the personal interview. interview. For the selection selection of worker level employees, employees, the HR and technical technical managers managers will be conducting the interview. For the senior level, the vice president also joins the interview panel, and for selection at managerial level, the MD accompanies the panel as well.

Unlike in most large organizations, at Sud-Chemie, the selection process does not incorporate written tests or group discussions since the requirement usually is less in number. Mass recruitment is not ordinarily necessary. Besides, most of the vacancies are filled by employee referrals.

3. Induction and Orientation

Induction is designed to provide a new employee with the information required to function comfortably comfortably and effectively effectively in the organization. organization.

Orientation Orientation generally generally conveys conveys general general

information about the daily organizational routine, a review of the organization’s history and a detailed presentation of the organizational policies and work rules.

At Sud-Ch Sud-Chemi emie, e, a new employ employee ee is provid provided ed with with an Induct Induction ion manual manual to familia familiarize rize himself/herself with the company and he/she is given an induction schedule of 15 days. During this period, the employee will be introduced to the various departments and their functions. More attention will be given to the functions of the particular department he/she


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. was chosen for. After 15 days of induction and orientation the new employee will have to prepare a report and submit it.

5. Performance Appraisal

Performance appraisal is the process of evaluating the performance and qualifications of employees in terms of the requirements of the job for which they are employed. Commonly performance appraisal is described as behavioral assessment, employee assessment, personal review, progress report, staff assessment, service rating and fitness report.

At Sud-Chemie Sud-Chemie the performan performance ce audit is done once in a year. Marks are allotted allotted to each employee out of 100, based on the following criteria.

•

Attitude towards work

•

Behavior in the organization

•

Technical knowledge

•

Safety knowledge

•

Seniority (only in case of workers)

For the appraisal, performance evaluation forms are used which incorporate all the criteria given above. The forms are forwarded to all department heads so that they can fill up the forms corresponding to each employee in their department. It is their responsibility to fill up the the eval evalua uati tion on form form and and retur return n them them to the the HR departm departmen ent. t.

For For each each empl employ oyee, ee, the the

immediate supervisor or the HOD will be assessing the performance.

The HR department will process the information in the filled forms and assign marks for each employee employee out of 100. Those who who get a score below 35 will be notified notified about about their poor performance and cautioned. Training programs will be arranged for them to improve their performance. Based on their scores, employees are categorized into poor, average, good,


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. outstandin outstanding g etc. Those who scored above above 85 are eligible eligible for promotions. promotions. Promotion Promotionss are granted to them according to the availability of vacancies.

6.

Industrial Relations

The field of industrial relations looks at the relationship between management and workers, particularly groups of of workers represented by a union. Labor relations can take place on many levels, such as the “shop-floor”, the regional level, and the national level. The distribution of power amongst these levels can greatly shape the way an economy functions. In Sud-Chemie the industrial relations scenario includes regular meetings like weekly shop floor meeting, monthly plant meeting, meeting on special issues, long terms settlem settlement ent etc.

In the weekly weekly shop shop floor floor meeting meeting the partici participan pants ts will will normal normally ly be the

production manager and the representatives of the trade union.

Normally work related

problems will be discussed dis cussed in this meeting. The monthly plant meeting will be participated partic ipated by all the department heads and union leaders. For specific issues separate s eparate meetings will be entertained entertained.. Long term settlements settlements in the case of salary restructuring restructuring and related related matter are done once in three or four years.

I. II.

Monthly plant mee meetting in inclu cluding al all th the de departm rtment Weekly sh shop flo floor meet meetiing (on (only pr production man manager and and emp employee

union) I II .

Separate meeting for specific issues

IV. IV.

Long Long term term sett settle leme ment nt for for sal salar ary y res restr truc uctu ture re and and all all (on (once in 3 yea years rs))

7.

Grievance

If employees have any problem normally they will talk about the same in the shop floor meeting meeting or plant meeting in which necessary necessary actions actions and negotiations negotiations are taken. For big issues management committee will be formed including all the departmental Heads.


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. 8. Separation

The first function of the personnel manager is to secure an employee from the society and the last function is separating the employee from the company company and to return him to the society. society. Separation occurs due to: •

Retirement

•

Discharge

•

Quitting

•

Lay-off

For ensuring the welfare of the retire employees the company arranges some benefits like PF, gratuity, superannuation grants etc.

Provident Fund

P.F. P.F. accum accumul ulati ation on of empl employ oyees ees of SudSud-Ch Chem emie ie kept kept in an exem exempt pted ed fund fund which which is main mainta tain ined ed by SudSud-Ch Chem emie ie Indi Indiaa Empl Employ oyees ees Prov Provid iden entt Fund Fund Trus Trust. t.

Trus Trustt incl includ udes es

representatives of employees and management in which chief controller corporate finance acts acts in the capaci capacity ty of Manageme Management nt Trustee Trustee..

Represe Representa ntativ tives es from from the employ employees ees are

selected through an election. Since the P.F. accumulations accumulations are kept in trust, it becomes easy to settle the claims of retired / resigned employees without any delay, Periodical meetings are arranged so that decisions are taken on the loan application from the employees.

Gratuity

Gratuity Gratuity of Sud-Chemie Sud-Chemie is maintained maintained with LIC in the form of Gratuity Fund. When an employee employee is retired or resigned after 5 years of continuous continuous service, gratuity amount amount payable payable to him is worked based on the last drawn salary and number of service years. Based on this, the retired/resigned employee gives a form “I” showing his consent to the amount. After this a claim is forwarded forwarded to LIC for settlement. settlement. LIC settles this this claim by issue of cheque cheque in the name of “Sud-Chemie “Sud-Chemie India Pvt. Ltd. – Gratuity Fund Account”. On receipt of this cheque from LIC, counter cheque is issued to employee and receipt of the same is obtained for future record.

Superannuation



In order to provide better retired life to supervisory staffs, company is having a “senior staff superannu superannuation ation scheme”. scheme”. This scheme scheme is maintained maintained with LIC and every year year company deposits a sum equal to certain percentage of total salary of supervisory staffs to this scheme. Every year LIC issues a statement showing the amount accumulated against each employee. On retirement of an employee who is member of this scheme, company forwards a GSCA form form to LIC asking for the various various benefit benefitss that that are offered offered..

On receipt receipt of this offer, offer,

employee employee chooses any one of the same and the claim based on his selection is forwarded to LIC which gets settled normally within a month.

But in the case of resignation of any employee holding a supervisory position or above it won’t be be possible to execute the recruitment process immediately. immediately. So the company always demands two month prior notification of resignation from the employees.

9. Work Load Assessment

Due to the business business improvements, improvements, work load of the employees employees also increases. increases. When this happen happenss employ employees ees will will inform inform the matter matter to the HR depart departmen mentt throug through h the HOD or personally. When an issue like this arrives at HR department, the evaluation or verification is done done by referrin referring g the work work study study conduc conducted ted by Nation National al Produc Productiv tivity ity Counci Councill and the suggestion suggestionss or standards put forwarded forwarded by them for each process. process. National National Productivity Productivity Council will do the work study in each organization covering all the process and suggest the minimum minimum required labor labor for each work process. process. So the company can evaluate evaluate the proposal for manpower recruitment due to the work load increase at a future time. So by referring the suggestions put forwarded by the national productivity council the HR personnel can easily find the necessity of the recruitment.

10. Government Relations

Normally a manufacturing organization maintains relationship with several Govt. departments. Some of them them are: •

Labor Department

•

Pollution Control



•

Factories Department

•

ESI

•

Provident Fund

These departments have direct or indirect control over the functioning of the organization.

FUNCTIONS OF CHIEF MANAGER, HR 1. RECRUITMENT:

One of the important functions of HR manager is the recruitment,

the company’s sales is growing at a percentage of 25%, due to this business improvement, work load also increase when it happens employees will directly inform the manager about this so that the manager can take necessary actions. actions. Also when the company company management management decides on any future expansion plans then these plans will be communicated to the head of the departments. 2. GENERAL OFFICE ADMINISTRATION: General Office administration includes all

the necessary actions needed for the smooth functioning of an office 3. ATTENDANCE ASSESSMENT :

HR manager assess the attendance status of all

employees. For this the executives will assist him. 4. LEAVE LEAVE APPLICATI APPLICATIONS ONS

:

Regard Regarding ing leave leave applica applicatio tions ns the primar primary y aim of the

manager is to ensure adequate manpower for every day so that the firm will function smoothly. Avoid manpower shortage due to cumulative cumulative leave application for same period. 5.GOVERNM 5.GOVERNMENT ENT RELATIONS: RELATIONS:

HR Mana Manage gerr act act as the the com communi munica cato torr for for the the

organization to the Government. 6. UNION RELATIONS RELATIONS:: Trade unions unions are common common in in industrial industrial organizati organizations. ons. HR

manager is responsible for maintaining the relationship with the trade unions. 7. HANDLING EMPLOYEE RELATED PROBLEMS :

If the employees have any

problem (in workplace) they will report to HR manager. It is the responsibility of the HR manager to listen to their complaints and take necessary actions. 8. ENSURING ADEQUATE FACILITIES: Like canteen, office, Furniture etc.


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. 9. MAINTAINING THE PAPERS: Papers regarding land, vehicles etc. which are owned

by the company. He has to ensure the payment of tax, insurance etc. pertaining to those assets.

FUNCTIONS OF SENIOR EXECUTIVES •

Books the ticket for travelling

•

Maintains the records of workers

•

Handles the HR related matters

•

He reports to the Chief Manager, HR

FUNCTIONS OF EXECUTIVES •

Time office function

•

Maintains the leave records

•

Records absenteeism of employees

•

Monitor ESI formalities

•

Handle the contract workers’ attendance

•

He reports to Senior Executive

FUNCTIONS OF RECEPTIONIST •

Attends the phone calls

•

Check the mails & reply to the mails of the organization

HR POLICY •

Selection is based on the merit

•

Promotions are based on the performance of the employees

TRAINING AND DEVELOPMENT PROGRAMMES Page |42 ILAHIA SCHOOL OF MANAGEMENT STUDIES

AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. Like any other organization SCIL also have concern on their employees performance. So they always give attention to provide training programmes to the employees whenever possible. Various training and development programmes programmes provided by the SCIL are: •

In house training

•

Softskill training

•

Conferences

•

Seminars

APPRAISAL MECHANISM The main appraisal mechanism adopted by SCIL is Rating Scale Mechanism. A performance audit is too done once in a year in the organization. Marks are allotted to each employee out of 100, based on the following criteria. •

Attitude towards work

•

Behavior in the organization

•

Technical knowledge

•

Safety knowledge

•

Seniority (only n case of workers)

In Sud-Chemie, performance evaluation forms are used which incorporate all the criteria given above. These forms are forwarded to the entire department heads so that they can can fill fill up the the form formss corre corresp spon ondi ding ng to each each empl employ oyee ee in their their depa depart rtme ment nt,, it is thei their r respon responsibi sibility lity to fill up the evaluati evaluation on form and return return to the HR departm department ent.. For each employee, immediate supervisor or the HOD will be accessing the performance. After filling the form HOD will return return it to the HR department. department. HR people will process process the information information in the filled forms forms and assign mark for each employee employee out of 100. Those who get get a score below 35 will be warned for poor performance. Training programs will be arranged a rranged for them to improve improve their performa performance. nce.

Based Based on the score score employe employees es are categori categorized zed to poor, poor,

average, good, outstanding etc. Those who scored above 85 are eligible for promotions. Promotions are granted to them according to the availability of vacancies

DISCIPLINARY PROCEDURES


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. SCIL is very strict in discipline. Any misconduct of employees is identified and appropriate punishments are given to them. Various punishments followed by the organization are: •

Warning

•

Suspension

•

Increment barring

•

Promotion barring

•

Dismissal

When misconduct occurs from any worker the concern supervisor will report to HOD of the respective department. The HOD then will report to the HR department. The HR manager will take the necessary action against it by giving suitable punishments for the misconduct

WAGES AND SALARY ADMINISTRATION The wage and salary of the employees are administered by the HR department with the help of Finance department. The HR manager decides the wages and salaries of each employees employees of the company after a discussion discussion with the Vice President, President, Edayar. Edayar. The Finance department maintains the records of salaries and wages of each employee. The salaries are paid to the office staff of the organizatio organization n based on their attendance. attendance. Their salary is paid through through the bank. bank. SCIL have a multiple multiple banking arrangement arrangement for salary payment. Salary cutoffs on the basis of attendance of the employees are there in SCIL. An attendance bonus is provided on the other hand i.e. 12 days extra salary. The various banks associated with the SCIL are: •

Federal Bank

•

SBI

•

SBT

•

HDFC

The wages are paid to both the lower level employees (monthly) and the contract workers on a daily basis through in the form of cheque. The HR manager is accountable for the salary and wage administration in SCIL, Edayar.

WORKING TIME AND SHIFTS The normal work timing of SCIL, EU is 8AM to 4PM. There are 3 shifts in SCIL:



•

1st shift - 8AM to 4PM

•

2nd shift - 4PM to 00Hr

•

3rd shift – 00Hr to 8AM

MANAGEMENT OF TRADE UNIONS Trade unions are common in all industrial organizations. There are two trade unions in the SCIL. It commenced in the year 1980. All the employees of the organization are trade union members. It is formed for the welfare of the employees. It sees into the complaints of the employees. The head of the trade union bring these complaints into the notice of the HR manage manager. r. The The HR manager manager is respons responsibl iblee for managi managing ng the trade trade unions unions.. HR manage manager r handles all the disputes of the trade unions through meetings & discussions with the trade union members. In the year 2005, a pretty fierce dispute occurred between the trade union and management regarding the salary increment. It leads to 3 months lock out. Later the issue was settled by the management by agreeing the demands of trade unions.

3.2.6 PURCHASE DEPARTMENT

Purchase department personnel are responsible for the purchase of raw material, office stationeries, spares for office and machineries etc. Purchase department is linked with all the other department departments. s. Whenever Whenever they require any commodity commodity,, they will inform the purchase department department and request them to take necessary actions. Purchase Purchase department department is responsible responsible for the selection of vendors, inviting quotations, tenders etc.

Normally the items which have to be purchased are: •

Raw material



•

Spares

•

Fuels

•

Office Stationery

•

Lab Equipment

•

Machinery

•

Gift and special items (as per the request of HR Dept)

Out of these the most most importan importantt one is the raw material material.. Raw materia materials ls are essential for continuing the production. Normally the marketing department will be forecasting forecasting the future future sales based on the previous previous year sales. From this this forecast it is possible to find out the yearly and monthly monthly production requirement. requirement. According to this this requirement production department will be scheduling the production and required raw material estimate will be given to the purchase department. department. Raw material procurement has a very important impact in the profitability of the firm, since it has a significant share in total cost also optimum level of raw material should be maintained to avoid the problem of over stocking and under stocking. Over stocking of raw material will result idle investment of money (dead money) which is not appreciated.

Structure of purchase department

Delhi Unit

VP, Edayar unit

Functional

Administration

Purchase Manager (Materials Manager)

Sr. Executive ILAHIA SCHOOL OF MANAGEMENTPurchase STUDIES Associate Executive

Page |46


Fig. 3.8 Structure of the Purchase Department

For all the purchases other than the regular raw material purchase (derived from the sales sales forecas forecast) t) a commit committee tee called called purcha purchase se commit committee tee is formed formed,, which which includ includes es the delegates from the purchase department and from other department for whom the commodity is purchased. purchased. In the committee meeting meeting decision regarding regarding vendor selection, selection, brand etc. are taken. But for normal production production raw material supply is handled handled without discussing it in the committee since, it is vital for the scheduled production. Normal production raw materials are purchased on regular basis. basis. The special items and urgent urgent requirements are discussed in the committee committee meeting. If the requirement is very urgent and there is no adequate time to call for a meeting then the purchase manager takes the necessary decision with the permission from higher authorities. For produc productio tion n each month month’s ’s raw materia materiall requir requireme ement nt will will be estimat estimated ed by the production department.

This one month material requirement categorized to weekly

requirement along with the upcoming two months material requirement budget is passed over to the purchase department ie, on the last week of every month purchase department will get the material material requirem requirement ent estimate estimate for the upcomin upcoming g three three month months. s.

This This three three month monthss

requir requireme ement nt is given given so that that the purchase purchase depart departmen mentt will will get enough enough time to plan plan the requir requireme ement nt process. process.

While While giving giving the requirem requirement ent material material already already in stock stock is also also

ment mentio ione ned d with with that that so that that adeq adequa uate te calcu calculat latio ions ns can can be done done to find find out out the the actua actuall requirement requirement for purchase. purchase.

Computerize Computerized d ERP system implemented implemented in Sud-Chemie Sud-Chemie will

automatically do the necessary calculations and communication. The company will be already made some contracts with the selected vendors for raw materials. materials. According According to the requirement requirement and stock available available stated in the document, document, the purchase manager takes the necessary actions and contact the vendor for supply of raw mate materia rials. ls.

The The orde orderr is plac placed ed accor accordi ding ng to the the requi require reme ment nt whil whilee cons consid ideri ering ng the the


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. transportation cost, overstock and under stock problems etc. ie., at an optimum time the order is placed so that it will not cause any overstock overstock or under stock problems. problems. Ordering Ordering time is found found out while considering considering all the contingencies contingencies or delays. Like delays delays in check posts for clearance, vehicle constraints or problems etc. so that the raw material will arrive at the required time even some contingencies happens. Even the raw material purchase is a standardized one in Sud Chemie and up to some extend extend flexibility flexibility is incorporated incorporated due to the varied requirements requirements of the customers. customers. Some customers may require highly reliable and high quality product without any cost constraints, some may order for low quality one. It is because of the importance or accuracy requirement of the process they are handling. handling. For the above stated products products this will be included included in the committee committee and if it is spares then maintenance maintenance department department personnel personnel will be included. The main aspects discussed in the committee are:

•

Base price

•

Tax structure

•

Transportation

•

Quality etc. The primary primary aim is to reduce the overall overall cost rather rather than reducing reducing unit unit price. For

example example a distant distant vendor will be neglected neglected even though he offers a low price per unit of the commodity commodity,, because of the large transportatio transportation n cost and delay. delay. So an optimum optimum choice is made among among vendors. vendors. After fixing fixing the vendor vendor the order order is placed. placed. In some case follow follow up also made for ensuring timely arrival of the product. When the material arrives at the factory premise, it will be directed towards the store. Normally vendors will be sending the delivery note and invoice with each batch. Store executive is responsible for the the initial verification of the material material arrived. He checks whether the quantity specified in the invoice and actual quantity in the arrived batch is matching or not. Immediately Immediately after the preliminary preliminary check store store executive executive will be preparing the MIB (materi (material al inward inward booking booking). ).

After After this this the store executiv executivee will will inform inform the concerned concerned

department for inspection. Chemicals will be inspected by the QA department, machineries and equipments will be inspected by the maintenance department while other items including some general raw materials in standardized form will be inspected by the store executive himself.


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. After the inspection store executive will be preparing the material receive note, on reception reception of this accounts accounts department department will make the payment. This material material receive note is forwarded to accounts after passing through the purchase department, so that they can verify the terms terms and price price etc. etc. Also Also purcha purchase se departm department ent handle handless the negoti negotiati ation on with with the contractors for specific works, like boiler maintenance, painting etc.

Functions of purchase department •

Purchases raw materials as on the behalf of production department

•

Keeps minimum re-order level

•

Daily monitoring of raw materials

•

Fix re-order level

•

Arrangement of raw materials, spare parts, consumables, consumables, outsourcing services as per the requirement of organization.

•

Enquire about materials

•

Receiving the codes and its comparison

•

Issue of order

•

Delivery of materials

•

Custom clearance on imported raw materials

•

Arrangement of transportation

•

Handling of issues related to quality problems, check post issues etc.

3.2.7 IT DEPARTMENT

SCIL Network (WAN)

Sud-Chemie India Ltd. has its offices in Delhi, Mumbai, Cochin, Baroda and these are connected connected using VPN (Virtual Private Network). Network). Sud-Chemie Sud-Chemie uses the networking networking services


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. of 2 companies, Tata and Reliance. There are about 210 systems supported by the network including desktops and laptops. There are 10 servers. At its Cochin unit, the Admin Block, R&D and QA departments are Wi-Fi enabled.

SCIL Network Security

There are both wired and wireless networks at SCIL, wired for daily use and wireless for portable use. The network is MAC filter and password protected. The Guest Network is a highly secured wireless network and is password protected. There are 3 levels of security-at the user level (password security), system level(Symantec security) and Network level(firewall security). The company provides secure limited access to the internet.

Data Storage and Backup

At Sud-Chemie, data is stored in centralized locations. Each user has 2 locations for storing data in the server. Storage quota is allocated for each user. There are also common folders for sharing data between users.

Structure of IT Department

Corporate IT Structure

VP- Corporate IT

Software & Licensing Management

IT Network and Security

Executive IT Executive IT ILAHIA SCHOOL OF MANAGEMENT STUDIES

IT Infrastructure Management

Page |50 Executive IT


Fig. 3.9 Structure of IT Department

3.2.8 STORES DEPARTMENT Activities of this department are controlled by stores in charge and he will be reporting to the Materials Manager of Purchase Department. He is responsible for the safe keeping of the materials materials and issuing issuing the same when a demand demand note received from an authenticate authenticated d official. official. He maintains a close contact with the purchase department and informs about the material, if any, on receiving the same. He is responsible to inform the purchase officer regarding those materials which are reaching re-order level. Structure of Stores Department

Materials Manager

STORE EXECUTIVE

Fig. 3.10 Structure of Stores Department


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. A stock ledger is maintained maintained in the department department which keeps record of each item and its current stock. For each item specific code numbers are assigned so that it is easy to keep record of the stock of each item. The stock ledger is updated updated after each issue or intake. The major functions of store department are: •

Receiving and safe keeping of materials

•

Issue of materials on request

•

Keeping track of current stock, inform the purchase officer regarding those materials which are reaching re-order level.

When the material ordered by the purchase department, arrives at the factory premise, it will be directed towards the store.

Normally vendors will be sending the delivery note and

invoice invoice with each batch. Store executive executive is responsible responsible for the initial verification verification of the material arrived. He checks whether the the quantity specified in the invoice and actual quantity in the arrived arrived batch batch is matchi matching ng or not. not.

Immedi Immediatel ately y after after the prelim prelimina inary ry check store

execut executive ive will be prepar preparing ing the MIB (material (material inward bookin booking). g).

After After this this the store store

executive will inform the concerned department for inspection. Chemicals will be inspected by the QA department, machineries and equipments will be inspected by the maintenance department while other items including some general raw materials in standardized form will be inspected by the store executive himself.

Items in stock are issued on arrival of demand demand note from other departments. departments. This demand demand note will include the item number, quantity, date etc. materials will be issued only when the demand notes are approved by the concerned HOD i.e. , if the QA department needs any chemical then they will prepare the demand note, approve it by the HOD QA and forward it to the store. If the demand note note seems to be valid, the store executive will issue the requested item and update the stock ledger. If any item issued to one department, kept idle or it is not been used then it can be returned to the store. In that case a return note is prepared by the concerned concerned department department and forward forward to the store along with the item. item. Store executive executive will include that in the stock ledger after verifying the quantity.


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. So in general documents handled by the store executive are: •

Material inward booking (MIB)

•

Material receive note (MRN)

•

Demand note

•

Return note

Store executive executivess will function in the general general shift ie, 8 am to 4 pm. Specific Specific time slots are allotted allotted for material issues. Since the production production is continued continued throughout throughout 24 hours a day, they will demand the required required raw materials materials for overnight overnight production production in the day shift itself. If any contingency occurs or any urgent maintenance requires in the off time, then the shift in charge can take the items in the presence of security personnel after asking permission from the store executive over phone.

Functions of Store executive •

Request for materials

•

Receipt of materials

•

Counting materials

•

Check the quantity and quality of materials

•

Enter the details about the materials received in the MRN

3.2.9 QUALITY ASSURANCE DEPARTMENT

This department plays an imperative role in the organization as it ensures the quality of the products manufactured by the production department. The term Quality Assurance is different from that of the term quality control. In fact Quality Assurance is the broader activity which involves quality control within it. It is said so because Quality Assurance is done right from the procurement of the raw materials and at each stages of production. This is done in order to detect the problems if any occurred at any stages of production and to take immediate action against it so as to produce the required product with the specifications by making necessary adjustments in the production process. The Quality control is done at each


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. stages of production to ensure whether the products are up to the standard norms set by the ISO. This will help the organization to enhance the product and thereby achieves customer satisfaction. Quality policy

SudSud-Ch Chem emie ie EU is comm committ itted ed to enha enhanc ncee cust custom omer er satisf satisfact actio ion n by mana managi ging ng processes, products and activities in a manner so as to achieve continual improvement of the system. To achieve this: Maintain quality system in accordance with ISO:9001:2000 standards 2.

Understanding the needs and

expectations of the customer and incorporating these into the quality plan 3.

Analyze

customer

satisfaction

based on the feedback of the customer 4.

Establish

and

review

quality

objectives 5.

Involvement of all concerned for

continuous improvement 6.

Training

and

retraining

of

personnel 7.

Spreading customer requirement

throughout the organization

Structure of QA department

Chief Manager, HOD-QA

Executive

Executive

Executive

Executive

Executive

Page |54 ILAHIA SCHOOL OF MANAGEMENT STUDIES Cleaner

Technician


Fig. 3.11 Structure of QA Department

MANAGEMENT SYSTEM STANDARDS

There are several management system standards pertaining to various aspects of management. Some of the system standards that are of concern to the stake holders are: ISO standard standard pertaining pertaining to quality quality management management system and environmental environmental management management system, brought out by the International Organization for Standardization (ISO), which is the world’s larges largestt develo developer per of standar standards. ds. ISO is a networ network k of nation national al standards standards institu institutes tes of 156 countries, of the basis of one member per country, with a central secretariat in Geneva, Switzerland, that coordinates the system.

ISO 9000

This is the general term used for the ISO 9000 series of standards applicable to the quality management system. An organization’s quality quality management system can be certified to ISO 9001:2000 standard provided it meets the requirements prescribed therein. ISO 14000

Similarly ISO 14000 is the general term used for the ISO 14000 family of standards. ISO 14001 contains a set of requirements to define the operation of the environmental mana managem gement ent syste system. m.

An orga organi niza zati tion onss mana manage geme ment nt syste system m can can be certi certifi fied ed to ISO ISO

14001:2004 standard provided the organization meets the requirements of this standard. Since the requirements requirements are prescribed prescribed in general general form; both these standards standards have the flexibility to be applied to any organization. OHSAS 18001


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. This Occupational Health and Safety Assessment Series (OHSAS) specification and the accompanying OHSAS 18002, guidelines for implementation of OHSAS 18001, have been developed in response to urgent customer demand for a recognizable occupational health and safety management system standard against which management systems can be assessed and certified. certified. OHSAS 18001 18001 has been developed developed to be compatible compatible with ISO 9001 and ISO 14001 14001 management system standards. OHSAS 18001 defines OH & S – MS as part of the overall management system, which facilitates the management of OH & S risks, associated with the business of the organization. OHSAS 18001 is neither an ISO standard nor a national standard. However, it has been used as the basis for several national standards. This standard has been developed as joint effort by BSI, National Standards Authority of Ireland, South African Bureau of Stan Standa dard rds, s, stan standa dard rdss and and Indu Industr stry y Resea Research rch Insti Institu tute te of Malay Malaysia sia and and severa severall othe other r certification agencies including BVQI. The Edayar unit of Sud-Chemie is currently certified to ISO 9001:2000, ISO 14001: 14001:200 2004 4 and OHSAS OHSAS 1800 18001 1

standar standards. ds.

But the the managem management ent recogn recognize izess that no

certification certification is of any relevance relevance unless customer customer satisfaction satisfaction is ensured. It is a fact that the consequences consequences of the failure of a catalyst while in use may cause the customer to suffer huge losses. losses. In order to avoid such circumstanc circumstances es the company has been taking taking extreme care at each stage of the manufacturin manufacturing g operations. operations. No stage is passed out unless unless our stringent stringent quality assurance norms are satisfied. The customers will vouch for the end result. Always maintainin maintaining g excellent quality reflected reflected in initial activity and sustainability sustainability of activity. activity. And improved performance and life, charge after charge. No wonder almost all major customers are married to them for ages for their catalyst requirements. •

R & D division of the company was certified ISO 9001 on 27.07.1999

•

Cochin Unit got its ISO 9002 certification on 18.6.1996

•

Baroda unit got its ISO 9002 certification on 4.4.1997

•

Cochin unit and R & D division has been certified ISO 14001 on 8.8.2000

Environmental Environmental Policy of Sud-Chemie India Ltd:


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. Sub Sub Chem Chemie ie Indi Indiaa Pvt. Pvt. Ltd. Ltd.,, Eday Edayar ar unit unit is comm committ itted ed to minim minimize ize envi enviro ronm nmen ental tal degradation by managing process, products and services in an environmentally responsible and lawful manner so as to achieve continual improvement in environmental performance. For this the following is given due importance: 1. Comply with applicable statutory, regulatory and other requirement. 2. Minimize adverse environmental impact by upgrading production facilities and process whenever required 3. Optimize resource utilization especially raw material, energy, oil and water 4. Impart appropriate training for to the employees 5. Implement and maintain EMS to 14001:1996 standards. 6. Develop green belt around the factory and recycle treated effluent for irrigation 7. Recover/recycle wastes or find alternative uses 8. Prevent pollution 9. Make the policy available to interested parties.

3.2.10 RESEARCH AND DEVELOPMENT DEPARTMENT

“Süd-Chem “Süd-Chemie´s ie´s Strategic Strategic Research and Development Development revolves entirely entirely around around industrial industrial biotechnology. biotechnology. Focus is on progress and innovation based on the sustainable use of renewable resources.

Süd-Chemie´s Strategic Research and Development has set itself this goal – efficient and sparing use of natural resources in order to create more quality of life for humans and the environment. We see sustainability as all-embracing – ecological, economical and social.

Our scientists make use of both their biotechnological expertise and the many years of experience gained in the course of our classic catalyst and absorbent activities. Based on this


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. extensive technology portfolio, we can offer our customers one-stop system solutions for sustainable resources.”

Functions of Research and Development Department

•

Improvement of existing catalysts

•

Development of new catalysts

•

Technology Absorption (communicating with national as well as foreign

resea researc rch h inst instit itut utes, es, adop adopti ting ng new new tech techno nolo logy gy and and rende renderi ring ng them them into into commercial practices.) •

Investigation and Review of catalyst performances and failures.

STAGES OF NEW PRODUCT DEVELOPMENT

1.

Idea ge generation (b (brain st storming)

2.

Literature survey

3.

Review o f the literature

4.

Review of of av available re resources

5.

Preparation of of pr product

6.

Applicatio tion & validati ation of product

7.

Scale up 8.

Commercialization of of pr product


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. Structure of R&D

M&TS

CEO, Edayar unit

Administration

Functional

HOD- VP, R&D

Secretary

Deputy Manager

Deputy

LAB Cleaner

Cleaner

Executiv

Executiv

Technicia

Technicia

Technicia

Pilot Plant

Executiv

Technicia

Executiv

Technicia

Technicia

Executiv

Technicia

Executiv

Technicia

Technicia

Fig. 3.12 Structure of R&D Department



CHAPTER – IV SWOT ANALYSIS



4. SWOT ANALYSIS SWOT analysis is conducted in order to find out the Strengths, weakness, opportunity opportunity and threat of the organization. The SWOT analysis of SUD CHEMIE India Pvt. Ltd. is as follows:

4.1 STRENGTHS

4.1.1 ESTABLISHED AROUND THE WORLD

SudSud-Ch Chem emie ie

is

a

high highly ly

inno innova vati tive ve,,

list listed ed spec specia ialt lty y

chem chemic ical alss

ente enterp rpri rise se

headquartered in Munich, Munich, Germany. Operating on a world wide scale, its core competency focuses on now-how in the sector of chemistry and physics for surfaces comprising finestgrain grained ed inor inorga gani nicc matte matter. r.

With With more more than than seven seventy ty sales sales and and prod produc ucti tion on comp compan anies ies

worldwide, worldwide, Sud-Chem Sud-Chemie ie seeks to expand the leading positions positions held in many markets. markets. For many years, more than 75% of Group sales have been realized with customers outside Germany. It systematically exploits the potential offered by fast growing growing regions, notably in Southe Southeast ast Asia and the Middle Middle East. Since Since Sud-Chem Sud-Chemie ie India is a part part of this massive massive worldwide setup, it enjoys the benefits from it.

4.1.2 IMPROVED INNOVATIVE ABILITY

The most important important lever for Sud-Chemie’s Sud-Chemie’s internal growth and profitability profitability is a high level of innovative innovative ability. ability. The growth targets targets cannot be realized unless succeed succeed in translating translating techno technolog logical ical leadersh leadership ip into into new, new, superi superior or and above above all, all, marke marketabl tablee soluti solutions ons for the customers. customers. To ensure that in its own specific specific areas of activity Sud-Chem Sud-Chemie ie remains on the leading edge of technological progress in the long term and is able to expand its technology platform, internal research and development processes were optimized from time to time.

Outsta Outstandi nding ng research researches es with with adequa adequate te scope scope for creati creativity vity are the basic basic requir requireme ement nt for innovative solutions. solutions. Efforts are therefore being intensified to bind researchers to the group on a lasti lasting ng basis basis and and enli enlist st top top inte intern rnat atio ional nal expe expert rts. s.

The The comp comple lexi xity ty of adva advanc nced ed


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. technology, as applied in specialty chemistry, calls for multidisciplinary co-operation within the company company itself, but also beyond beyond corporate corporate boundaries. boundaries. For this reason, Sud-Chem Sud-Chemie ie cultivates a global knowledge network with well-known research institutes and universities. These These research research partne partnershi rships ps allow allow the compan company’s y’s own resourc resources es to be more more selecti selectivel vely y employed and development times shortened.

In additi addition on to dynam dynamic ic innova innovatio tion, n, the Group’ Group’ss abilit ability y to react react quickl quickly y and flexibly flexibly to specific customer needs serves to guarantee success. Sud-Chemie sees itself as a partner for its customers, not only during the marketing process, but also at the development stage.

4.1.3 CONSISTENT CUSTOMER ORIENTATION

It is the customer who ultimately decides on a company’s growth and its success. The aim is to bind customers in the the long term based on outstanding outstanding performance. Enhanced key account management activities have expanded the the scope of co-operation with major major customers. As a result of the trend towards global concentration, an increasingly large proportion of sales accrue from globally-active globally-active enterprises holding strong market positions. Marketing activities have therefore been geared more intensively towards these key customers.

4.1.4 RESEARCH AND DEVELOPMENT

SudSud-Ch Chem emie ie Indi Indiaa star starte ted d its its R & D acti activi viti ties es alon along g with with the the comm commen ence ceme ment nt of manufacturin manufacturing g operations in 1970. Because catalyst catalyst technology technology is highly research oriented oriented and have to keep pace with the developments developments worldwide. worldwide. During During these years Sud-Chemie Sud-Chemie were not confined confined to improvements improvements in conventional conventional catalysts as well. Today Sud-Chem Sud-Chemie ie has to its credit, the honor of developing more than 20 catalysts, all of which are performing succ success essfu full lly y in Indi Indiaa and and abro abroad ad..

The The late latest st from from SudSud-Ch Chem emie ie is Ultr Ultraa Deep Deep Hydr Hydro o

Desulphurization Catalysts for treating Diesel which can reduce Sulphur to less than 50 ppm from 2500 2500 ppm. ppm. A number number of catalyst catalystss developed developed are import import substitut substitution ion ones. ones. R & D Division is supported by a well-equipped Pilot Plant. From lab scale to Commercial Commercial Scale is achieved here. After perfecting technology for commercial production it is passed on to the manufacturing units. This unit got DSIR recognition recognition 1974.


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. Sud-Chemie India’s R & D division and the manufacturing units work hand in hand with various various National Laboratori Laboratories es and Universities. Universities. They have successfully successfully commercializ commercialized ed certain products developed by National Chemical Laboratories Laboratories (NCL). R & D work work in close association association with Indian Indian Institute Institute of Chemical Chemical Technolog Technologies ies (IICT). (IICT).

Sud-Chemie Sud-Chemie have

entered into a memorandum of understanding with Indian Institute of Petroleum (IIP) for developmen developmentt of certain new and import import substitution substitution catalysts. catalysts. Also working working jointly with CSIR laboratory, NCL, IICT and IIP for the development of some catalysts for refining and petrochemical applications.

Sud Chemie’s R & D work in association with Cochin

University of Science & Technology on Catalyst Research.

4.1.5 CERTIFIED COMPANY

All international certifications obtained by the company are solid proof for the commitment to quality. They work with properly laid out systems and procedures. There are well laid out out procedures and work instructions so that nothing is left to chance. •

R & D division of the company was certified ISO 9001 on 27/07/1999

•

Cochin unit got got its ISO 9002 certification on 18/06/1996

•

Baroda Unit got its ISO 9002 certification on 04/04/1997.

•

Cochin unit and R & D division has been certified ISO 14001 on 08/08/2000

Now all have been certified ISO 9001:2000 and ISO 14001 standard.

4.2 WEAKNESSES

4.2.1 LABOR ISSUES

The world has changed but Kerala has not, as far as the industrial relations scenario in the state state is concer concerned ned.. Sweepi Sweeping ng changes changes have taken place place in the world and the rest of the country, but we try to revisit our old values, beliefs and practices and attempt to re-examine and possibility possibility reposition reposition ourselves ourselves in the world. A detailed study conducte conducted d in the state reveals that the total number of man days lost on account of strikes in Kerala shot up from 539,138 in 1997 1997 to around 3.25 million in 2005. Likewise, the man days lost on account of


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. lockouts also went up from 418,035 to 1.85 million and man days lost due to layoffs also drastically went up from 1.38 1.38 million to 5.68 5.68 million. In line with this trend Edayar Unit had its share of strikes/lock out in 1973 (14 days), 1975 (45 days), 1989 (40 days), 1998 (105 days), 2003 (210 days) and 2004 (7 days). The need of the hour hour is for all stakeholders – the government, managements, trade unions and the labor department to jointly plan and execute certain identification common points of interest and concern.

4.3 OPPORTUNITIES

4.3.1 BETTER USE OF NATURAL RESOURCES

Mankin Mankind d is currently currently facing facing great challen challenges. ges. increas increasing ing rate. rate.

We are consum consuming ing raw materials materials at an

Now arise arise the questio questionsns- How can natura naturall resourc resources es be utilize utilized d more more

effectively? How can we secure our energy in fuel needs, as oil become more and more scare? What can we do to compact global warming? The answers to these questions can only be found with the help of innovative innovative solutions provided by the chemical industry. industry.

4.3.2 NEW MARKETS

A good source of renewable transportation fuels and lubricants is non-edible and used

vegeta vegetable ble oils. Thoug Though h vegetab vegetable le oils oils can be directl directly y used used in diesel engines engines,, their their high high viscosity (often> times that of diesel) and low pour points prevent their direct use. They can, however, be Trans – esterified with lower alcohols, typically methanol, into the fatty acid esters (FAME, (FAME, fatty acid methyl methyl ester) and used as diesel substitutes. substitutes. Already, Already, more than 6 Millio Million n tpa of biodie biodiesel sel is produc produced ed global globally ly today today,, much much of it in Europ Europe, e, princi principal pally ly Germany. The major source of bio – diesel is Rapeseed oil in Europe, while it is Soya Soya bean oil in U.S.A. the Trans esterification reaction is catalyzed both by bases and acids. Catalyst industry has a future market in the case of vegetable oils refining.

4.3.3 GTL TECHNOLOGY


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. Worldwide Worldwide demand demand for clean, reliable and affordable affordable energy energy has never been greater. New technologies are needed to produce more oil and natural gas from remote or “stranded” locations. Gas to Liquids (GTL) conversion conversion is an umbrella umbrella term for a group of technologies technologies that can create liquid liquid hydrocarbon hydrocarbon fuels from a variety of feedstocks. feedstocks. The conversion conversion of natural gas into liquid fuels is an attractive option to commercialize abundant gas reserves. GTL, with virtually unlimited markets, offers a new way to unlock large gas reserves, complementary to other traditional technologies such as Liquefied Natural Gas (LNG) and pipelines. GTL has the potential to convert a significant percentage of the world’s estimated esti mated proved and potential gas reserves which today holds little or no economic value. In essence, GTL uses catalytic reactions to synthesize complex hydrocarbons from carbon monoxide and hydrogen. So in short the the GTL is an area where catalyst producers can look ahead.

4.3.2 ENVIRONMENTAL REGULATIONS

In the future, however, as environmental regulations abound and refining processes become more sophisticated, there is room for new generations of catalysts that may make the business more attractive for its participants.

In fact, environmental legislation mandating lower sulfur levels is a strong driver for catalyst demand demand and develo developme pment. nt.

That’s That’s really the story story going going forward forward from 2000 2000 and 2001. 2001.

“Environm “Environmental ental regulation regulation is key, worldwide. worldwide. We have to get cleaner cleaner fuels, “says First M. Dautzenberg, vice president of technology development for ABB Lummus in Bloomfield, N.J.

In order to increase production of cleaner transportation fuels, “we will need

considerably considerably more more catalyst catalyst than we are using at this moment,” moment,” he continues. continues. The diesel specification for sulfur used to be 300 ppm; now it is about 50 ppm, “Dautzenberg adds. Whethe Whetherr refiner refinerss install install more more cataly catalyst st or use the same same system system while while regene regenerati rating ng more more frequently, he emphasizes, “It all leads to more catalyst per ton of product.”

4.4 THREATS

The total sales of catalyst for oil refining industry come close to total catalyst usage because very few oil companies companies make make their own catalysts. catalysts. The growth growth rate in oil refining catalysts catalysts tends to track economic activity, so it is low; 1 or 2% at best. “The business is growing at the


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. rate rate of ener energy gy usag usagee or sligh slightly tly abov abovee beca becaus usee of the the need need for for more more soph sophist istic icate ated d processing,” says Rick Penning, assistant a ssistant to the senior vice president at catalyst technology supplier UOP and head of its catalysts business task force.

Because the emphasis for refineries continues to be on cost reduction, there is tremendous pressure to lower catalyst costs, to the detriment of catalyst makers. Even though oil prices have corrected corrected themselves themselves in the past year, leading to oil industry announcemen announcements ts of record profits, cost pressure remains. Therefore, catalyst suppliers “have to always deliver better performance but at the same or a very competitive cost”. However, if oil companies can extract value in the performance of advanced catalysts, they are willing to pay pay a premium. A sophisticated new catalyst that improves crude oil conversion just 1% will generate millions of dollars of additional revenue that will justify its cost.

A negative market driver for refining catalysts has been consolidation within the oil industry over the past 10 years. As companies merge, the oil oil industry is dominated dominated by fewer, larger companies that can exert greater pricing pressure on catalyst manufactures.



CHAPTER-V FINDINGS AND SUGGESTIONS CONCLUTION



5. FINDINGS AND SUGGESTIONS

FINDINGS •

No strikes have been reported for the last 10 years and it shows the relationship of workers and management as a good one.

•

SCIL have a flexible credit policy. policy. They give credit facility up to 30-45 days days and they are getting a credit of 60 days from suppliers

•

No major environmental pollution has been reported for the past 50 years of operation



•

The customers have no rejection for SCIL products, which shows the product satisfaction

•

•

New technology of membrane cell has the advantage of pollution free environment environment

Insufficient first aid facility.

SUGGESTIONS •

The company must activate the research and development cell in order to have new inventions in this field

•

In order to increase the production, the company must introduce some motivation schemes for the employees

•

For the smooth functioning, they must invest a reasonable amount of working capital

•

Improve the first aid facilities by providing free medicines and treatments

•

The company should conduct market research to find out the movement of the products and to identify potential customers

5.1 CONCLUSION My study at Sud-Chemie India Pvt. Ltd. was quite an enriching experience for me. It gave gave me qual qualit ity y expo exposu sure re and and help helped ed crea create te a firs firstt-ha hand nd impr impres essi sion on of an actu actual al organizational environment. It was possible for me to relate the subjects learned at the academic sessions in my MBA program to the functioning at the business concern. The study not only exposed me to the organizatio organizational nal atmosphere atmosphere but also gave me a look into the chemical/catalyst chemical/catalyst industry. industry. Certain organizatio organizational nal characteristics characteristics like the flow


AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD. of information, corporate decision-making process by various echelons of the functionaries in the organization could be visible from a closer view. For the success of an organization, it is important that there should be strong and harmonious relationships between groups and teams in the organization and there should be an underlying spirit for the the fulfillment of the organizational goals. The need for cohesiveness and collective participation by members in the organization should be prevailing for any entity to survive survive ad sustain. To maintain maintain such a healthy and conducive conducive environment environment at all levels is a challenging task for the management. This study was done with the prime motive of analyzing and understanding the overal overalll functi functions ons of an organi organizat zation ion and its variou variouss departm departments ents,, report reporting ing and contro controll procedures and the ways in which each department of an organization is interdependent in smooth functioning of an organization as a system. In spite of the existence of a few limitation factors, whole hearted effort has been taken to make this project an achievement.



5.2 BIBLIOGRAPHY

i.

SCIL.”Sud-Cemie India Creating Performance

Technology” ii.

Govt. of India Publication, “Constitution of India”

iii.

www.Businessline.in

iv.

www.sud-chemie-india.com. Munich: SCIL, 2012, Web.

v.

F.A cheru Nilam,” International Business”, Himalaya

Publication vi.

Academy of Business Studies, “ The WTO”


Sud-Chemie India Pvt.ltd OS Report

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