DECLARATION

I, Rahees. k, 3 rd trimester student of Bhavan’s Royal Institute of Management

Thiruvankulam, hereby declare that this project entitled “A report on the organizational
study conducted at Keltron Component Complex Limited, Kannur” is based on the
original study conducted by me and is submitted in partial fulfillment of requirement for
the award of the Post Graduate Diploma in Management approved by AICTE.

Date: 17/05/2010 Rahees.k

Place:

1
 ACKNOWLEDGEMENT

I wish to express my indebtedness and gratitude to Ms. Remya, Personnel officer,

for giving me support to do this internship training in KCCL.

I take this opportunity to express our sincere gratitude to our beloved Dean,
Prof: Dr. B. Hareendran for giving me an opportunity to do this project.

I express my gratitude to our project guide Ms. Manisha pillai, who has taken
interest in guiding us to complete the project. We also thank all the staff members.

Last but not the least; my gratitude is to the almighty for showering me with abundant
grace through the entire duration of this training. I believe that the light that God has passed on
to me shall be kept alight in all days to come.

Date: 17/05/2010 Rahees.k

Place:

TABLE OF CONTENTS
2
Serial CONTENTS Page No.
No
1 Introduction 5-6

2 Industry Profile 7-10

3 Company Profile 11-13

4 Board of Directors 14

5 Product: Aluminum Electrolyte Capacitor 15-16

6 Departments 17

KCCL-Organization Chart 18-19

Planning Department 20-21

Marketing Department 22-23

Manufacturing Department 24-28

Plant Engineering Department 29-32

Calibration Department 33-36

Quality Assurance Department 37-41

Finance Department 42-46

Engineering And Design Department 47-49

Human Resource & Administrating Department 50-56

Research And Development 57-58

Electronic Data Processing Department 59-61

7 Etching & Forming Department 62

3
8 SWOT Analysis 63

9 Findings & Recommendation 64

10 Conclusion 65

Bibliography 66

4
 CHAPTER 1

INTRODUCTION
This Organization Study conducted at Keltron Component Complex Limited, Kannur.
The objectives of the study is identified the function of departments in the organization.

1.1 Need and Significance of Study

Management principles can be taught in class rooms but managerial skills can be
developed in an individual only. When he is trained so. As job are rare and lots of
people are equally qualified what makes the student different is his familiarity with
corporate practices, processes and this study is also attempt to make the trainee familiar
with a public sector manufacturing company.

1.2. Objectives of the Study

 To know the Organizational structure of the Company

 To know the functions of various Departments such as Marketing, Finance,
Production, Human Resource Management, etc.
 To gain practical knowledge about the functioning of various departments of the
organization.
 To understand the works relationship with Technology and Organization by
studying work practices.

5
1.3 Scope of Study

The study is intended to provide managerial insight to a management student. If will

enable him to take up responsibilities of a manager at ease and provide him more
confidence. The scope of the study is confined to a few selected departments and their
functions. The trainee may also get a feel about how business executives operate in their
work settings.

1.4 Methodology

The Project work titled “An Organization Study” conducted at KELTRON is based on a
descriptive study. The data collection were both from primary and secondary sources

The primary source of data collection includes consultation with top management,
interviews with employees, informal talks with employees and observations. The secondary
sources of data collection were the annual reports, Departmental reports, catalogues, etc.

1.5 SCHEME OF REPORTING

This report is presented in five chapters. The first chapter introduces the study by
highlighting the need for the study, the study objectives, methodology and scheme of
reporting. The second chapter on industry profile discuss about the Aluminum Electrolyte
Capacitors industry. Third chapter describes profile of Keltron Conponent Complex Ltd..
The fourth chapter describes the detailed study of different departments in which the trainee
had under gone the training.

6
 CHAPTER 2

INDUSTRY PROFILE

An electronic component is any physical entity in an electronic system used to

affect the electrons or their associated fields in a desired manner consist with the intended
function of the electronic system. Components are generally intended to be connected
together, usually by being soldered to a printed circuit board(PCB), to create an electronic
circuit with a particular function ( for example an amplifier, radio receiver, or
oscillator). Components may be packed singly or in more complex groups as integrated
circuits. Some common electronic components are capacitors, resistors, diodes, transistors etc.

"A capacitor is a device capable of storing charge in a circuit, and typically consists of two
metal plates separated by an insulator, called a dielectric. Capacitance is directly proportional to
the area of the plates and the dielectric constant of the insulator and is inversely proportional to
the distance between the plates." Capacitors can store charges from voltage sources for a wide
range of time, to be released as needed. The classification of capacitor types by material such as
paper, ceramic, or tantalum refers to the insulating dielectric. Electronic capacitors are part of a
class of electronic components called passive components. They differ from active components,
such as vacuum tubes and transistors, in that they can neither distinguish voltage polarity nor
amplify a signal.

Early capacitors were also known as condensers, a term that is still occasionally
used today. The term was first used for this purpose by Alessandro Volta in 1782, with
reference to the device’s ability to store a higher density of electric charge than a
normal isolated conductor.

7
 The first capacitor was the Leyden jar, invented independently in the mid-1740s by both
Ewald Georg von Kleist and Pieter van Musschenbroek. A glass jar acted as the insulating
material. M. Bauer developed the mica capacitor in Germany in 1874.

. The tubular glass capacitor was produced in 1904 by I. Moscicki in the United Kingdom. It
was this capacitor that Guglielmo Marconi used in his early experiments with radio
communication.

World War I provided an important catalyst for technical change in electronic

communications, during which new radio tubes and circuits were developed. The interwar
years saw the rapid growth of radio, and, on the eve of World War II, millions of radios were
in use worldwide.

During the World War II years, substantial developments were made in communications
electronics, radio astronomy, xerography, and radar and computer technology, as well as in
miniaturization and the improvement of the energy efficiency of components. The harsh
conditions and importance of reliability imposed by the war led to the development of metal-
cased and metalized paper dielectric capacitors, as well as improvements in ceramic capacitors.
The tantalum capacitor was produced in 1956 by D. McLean and F. Power of the United States,
after which it became among the most widely, used capacitor types.

Among the most significant developments in electronic components in the postwar

period were the transistor and integrated circuit. Transistors are based on solid-state
technology, serving as substitutes for the older triode vacuum tube active components,
developed by Lee De Forest in 1906. In 1948, Bell Laboratories developed the transistor
(whose name derives from transferred resistor), which enabled electronic equipment to be
produced in increasingly smaller sizes. The first integrated circuit was produced by Texas

8
Instruments in 1959. This device made use of transistors and other components mounted on a
semiconductor chip to form an entire electronic circuit.

Chip capacitors are surface-mounted to circuit boards, in contrast to traditional capacitors

with wire leads. Although chip capacitors are generally higher priced than those with leads, the
price gap decreased in the 1990s. Also during this time, chip capacitors came into increasing use,
especially in equipment such as portable phones, video cameras, and electronic notebooks, items
for which space constraints were a prime consideration. Demand for surface mounting and
miniaturization continued in the late 1990s, along with higher capacitance and integrated
devices.

World Scenario

The worldwide electrical and electronics industry is experiencing phenomenal and

remarkable changes these days. The worldwide electronics industry is distinguished by fast
technological advances and has grown rapidly than most other industries over the past 30 years.

Globally, during the early 2000s, end-users of passive electronic components like
capacitors—namely original equipment manufacturers—were applying continuous pressure on
the industry to lower prices. This had a devastating impact on profitability, as many capacitor
manufacturers were forced to produce components at or below the cost of production. In
addition, the industry was forced to contend with a generally weak economic climate, heightened
competition from the likes of Asia, and downturns in leading end markets like
telecommunications equipment and computers. These negative conditions led to workforce
reductions, consolidation, plant closures, and a reduction in overall capital spending and
production capacity.

9
Factors Governing the Growth of this Industry

The key factors governing the growth of electrical and electronics industry are as follows:

 Rising and continuous investments in research and development has led to increased
productivity and higher-value added electrical and electronics products.
 Increased foreign investments have resulted in the accelerated growth in terms of
electronics production and exports. Foreign companies are now making huge investments
and are installing extensive production capacities in developing countries.
 Extends support to several global industries namely medical, telecommunications,
industrial and automotive sectors.
 Rising incomes and living standards have resulted in the increase in demand of
electronics especially consumer electronics products in the world.
 This industry is highly fragmented which comprises of many small and medium size
enterprises.
 Rapid pace of innovation in electronics technology is resulting in a consistent demand for
newer and faster products and applications.

INDIAN ELECTRONIC INDUSTRY

The electronic industry in India constitutes just 0.7 % of the global electronic industry.
Hence it is miniscule by international comparison. However the demand in the Indian market is
growing rapidly and investments are flowing in to augment manufacturing capacity. India
however remains a major importer of electronic materials, components and finished equipment
amounting to over US$26 Billion in 2009. This is not a desirable situation and local
manufacturing has to keep pace with growing local demand.

10
 CHAPTER 3

COMPANY PROFILE

Introduction

Keltron was established as a subsidiary company of Kerala State Electronic Development

Corporation Ltd on 8th October 1974 by shri. K.P.P. Nambiar, who is the founder of the
Organization. Later, on 19th August 1978, the companies started commercialize its production. It
was an experiment by Government of Kerala to transform the laid-back, picturesque Kerala
State known for its spices, natural beauty, Kathakali and the Onam boat races, to arena for
industrial and technological development. That was how Keltron born.

Keltron Component Complex Limited (KCCL) is a Government of Kerala undertaking

promoted by Kerala State Electronics Development Corporation Limited. The company is
located in the district of Kannur in Kerala. It commenced its commercial production of
Aluminum Electrolyte Capacitors in August 1978 in technical collaboration with N. V
Sprague Electromag, Belgium a subsidiary of the world famous Sprague Electric Company of
USA.

KCCL markets its products under the brand name ‘KELTRON’. It has a good manufacturing
facility with sophisticated machines import from Japan and Europe. It has a capability to
produce all types of Aluminum Electrolytic Capacitors, which confirm to national and
international standards. The manufacturing technologies is upgraded with R&D center of
the company has the recognition of the Department of Scientific and Industrial Research,
Ministry of Science and Technology, Government of India. The state Pollution Control Board
has certified the company’s ecofriendly facility at Kannur. M/S KPMG, USA, have conferred the
company’s quality system with the ISO-9001 accreditation.

11
 Earlier Keltron had four units operating in different parts of India. On January 2010 they
amalgamated, Keltron Crystals Ltd, Keltron Magnetics Ltd, and Keltron Resistor Ltd in to one
single unit known as Keltron Component Complex Ltd.

APPLICATION/CUSTOMERS

Electrolyte capacitors are widely used in TV sets, VCR, Radios, Tape recorders, Telephone
instruments, Motors, Electronic exchanges, Communication equipments, Defense
equipments etc.

The present customers include major Indian companies like BEL, ITI, C-DOT, HCI,
Tata Telecom, Onida, Sharp India, Videocon, Crompton Greaves, Kirloskar and other
small OEMS serviced through dealer network.

MISSION

“ We aim at maximum satisfaction to our customers by providing goods which meet

the requirements. We are committed to achieve our goal with the involvement of employer at
all levels”.

VISION

“To re-build Keltron into Rs1000 crores company in five years time –frame and make it a NAVRATNA of the
country”

12
AWARDS/RECOGNITIONS

 National Productivity Award for 1988-89 under large scale electronic components
from National Productivity Council, New Delhi.
 ELCINA Award 1993 for excellence in Research and Development for work done
in the field of forming technology.
 Department of Scientific and Industrial Research and Ministry of Science and
Technology, Government of India approval for in-house Research and
Development.
 ISO-9001 – 2000 Certification from M/S Intertek - UK

13
 BOARD OF DIRECTORS
 

1. Mr.T.Balakrishnan, IAS Chairman

2. Captain O P Dua  Managing Director
 
3. Dr. Inder Jit Sigh, IAS Director
 
4. Mr. T O Sooraj, IAS  Director
 
5. Mr. Radhakrishnan Nair Director
 
6. Mr. CA. Suresh Kumar Director
 
7. Mr. Rajan T Joseph  Director
 
8. Mr. T R Chidambaram  Director
   
9. Mrs S.Roopakala Jagath 
Director

PRODUCT

Aluminum Electrolytic Capacitor

14
 An electrolytic capacitor is a type of capacitor that uses an ionic conducting liquid as one of its
plates with a larger capacitance per unit volume than other types. They are valuable in relatively
high-current and low-frequency electrical circuits. This is especially the case in power-supply
filters, where they store charge needed to moderate output voltage and current fluctuations
in rectifier output. They are also widely used as coupling capacitors in circuits where AC should
be conducted but DC should not.

Aluminum Electrolyte Capacitor, basically consists of anode foil, cathode foil and condenser
tissue paper interleaved and rolled to form cylindrical capacitor section.

The anode and cathode foils are interleaved with paper and wound into a cylinder. During the
winding process, aluminum tabs are attached to each foil to provide electrical contract

The complete winding is then impregnated with an electrolyte, before being housed in a
suitable container, usually aluminum can, and sealed. Before being sleeved and packed,
capacitors are first aged. The purpose of this stage is to repair any damage in the oxide layer,
and thus reduce the leakage current to very low levels. Damage to the oxide layer can occur due
to slitting of the anode foil after forming, attaching the tabs to the anode foils, or minor
mechanical damage caused during winding. Normally carried out at the rated top temperature to
the capacitor, agencies apply voltage to the device through a current limited supply, process that
may take several hours to complete.

Anode foil used in Aluminum Electrolyte capacitors is of high purity 99.98%. The foil is etched
to increase the surface area and formed to the required voltage based on the working voltage.
Cathode foil is etched for increasing purity of Aluminum foil. The thickness of foil ranges from
20 microns to 110 microns based on the type of foil (anode or cathode)

15
Products

The company started with manufacturing of axial, radial, can type DC component.
Subsequently products were added with in-house development. At present the company
manufactures a wide range of Aluminum electrolyte AC and DC capacitors, Motor start
capacitors and Motor run capacitors.

KELTRON COMPONENT

COMPLEX LIMITED

16
 DEPARTMENTS

KELTRON-ORGANIZATION CHART

PLNG

17
 MRKG

MFG-1

MFG-2

MFG-3

MFG-4

PE

MD CAL

QA

FN

E&D

HRD

R&D

EDP

E&F

PLNG : PLANNING

MRKG: MARKETING

MFG-1 : MANUFACTURING 1

18
MFG-2 : MANUFACTURING 2

MFG-3 : MANUFACTURING 3

MFG-4 : MANUFACTURING 4

PE : PLANT ENGINEERING

CAL : CALIBRATION

QA : QUALITY ASSURANCE

FN : FINANCE

E & D : ENGINEERING & DESIGN

HRD : HUMAN RESOURCE DEPARTMENT

R & D : RESEARCH & DEVELOPMENT

EDP : ELECTRONIC DATA PROCESSING

E&F : ETCHING & FORMING

PLANNING DEPARTMENT
In Keltron planning is done in all department on the annual intend from top
management, marketing department and planning department will prepare an annual budget
based on the marketing trend, demand and price existing in the market. After getting
the approval of Managing Director the Annual Budget is send to the marketing

19
 department and other proposed departments other than preparing the annual budget the
planning department is also engaged in preparing a quarterly and monthly budgets to
meet market requirements. They arrange short-list; in which non-availability of material
is listed initiative taken by the purchase department is highlighted. Purchase department
makes arrangement for providing materials and after receiving materials work order is
issued to production department. After inspecting the Raw Material’s they are given to
stores which would be then put in production.

PLANNING DEPARTMENT- ORGANIZATION CHART

HOD

OIC

TYPIST ASSISTANT ASSISTANT TYPIST

DUTIES

Planning department has to look after the rework of capacitors, standardization of

work and even tool room fabrication. The primary duty of planning department is to
reduce wastage from each department, wastage including time, material, finance, motion
etc. reducing the congestion in stores by using FIFO method is also taken into

20
consideration. It keeps production control that is according to the plan and sees to it that
cost can be reduced in manufacturing. It also takes into consideration whether men and
material are running in full capacity.

SCOPE

 Manufacturing of Aluminum electrolyte capacitors and related production activities.

 Forming of aluminum foil.
 Job work for sub-contracted items.
 Rework of capacitors.
 Tool room fabrication and miscellaneous job work.

MARKETING DEPARTMENT

Marketing is one of the most important operative functions of management. Marketing is a

human activity directed at satisfying needs and wants through exchange process. It includes all
resources and selling activities necessary to direct and facilitate the flow of goods and services

21
 from producers to consumers in the process of distribution. The success of a company depends
on the acceptability of its products in the market.

MARKETING DEPARTMENT ORGANIZATION CHART

MARKETING
MANAGER

SENIOR OFFICER SENIOR OFFICER

SECTION SECTION SECTION SECTION

ASSISTANT ASSISTANT ASSISTANT ASSISTANT

OBJECTIVES

 To fulfill customers needs

 To increase sales

22
4 P’S OF MARKETING MIX

As Marketing Department n of every other organization here also they focus on the
marketing mix i.e.; 4P’s which are this;

1. Product
2. Price
3. Place
4. Promotion

Product

The product of KCCL is the electrolyte capacitors. These are industrial oriented product
which is a component of electronic goods like TV, Refrigerator, and Computers etc.

Price

The price of capacitors are fixed in such a way that is not too high, that customers
cannot afford it nor too low that they cannot incur the cost of production. Comparatively
the price of capacitors of KCCL high but even then they are able to withstand in the
market because of the good quality. Price is fixed on the basis of the cost, demand and
competition.

Place

KCCL carries out their sales through

 Authorized Dealers
 Direct Sales

23
 All over India KCCL have dealers network. It has branches in cities namely;
Ahmadabad, Bangalore, Calcutta, Delhi, Chennai, Hyderabad, Trivandrum.

The company sells the product to authorized dealers who sell it to the retailers which
are sold by them to ultimate customers. Dealers are given discounts and the company
offers additional discounts in case of quick payment and to regular customers.

Company fixes target sales for the dealers and if they succeed in meeting the fixed
target they are offered commission at the end of the year. Some of their customers are
given discounts on the basis of the turnover which is termed as Turnover discount.

KCCL is also engaged in direct sales to the customers in case it’s a bulk order.

Promotion

The product of KCCL is a component which is an industrial product and therefore

they need not use any form of advertisement. But they do take part in exhibitions and
conduct seminars to promote their product. Thus they do not require huge investment for
sales promotion.

MANUFACTURING DEPARTMENT

KCCL is the biggest manufacture of Aluminum Electrolyte Capacitors in India. It has

state of the art manufacturing facility equipped with latest automatic and semiautomatic

24
production machinery and test equipments. It has also the capability to design and
develop different types of Aluminum Electrolyte Capacitors meeting national or
international customer specifications. The company has, for the first time in India,
developed the technology for forming of high and low voltage foils in its in-house
forming plant. In fact, KCCL is the only company for manufacturing all types of
capacitors like radial, axial capacitors etc. Etched and formed Aluminum foil is a major
raw material for the production of electrolytic capacitors. Manufactures are importing this
type of Aluminum foils, since the technology for etching and forming of aluminum not
available in India. So they import this material from Korea, Taiwan, China and Singapore

MANUFACTURING PROCESS OF ELECTROLYTE CAPACITORS

STICHING AND ROLLING

25
IMPREGNATION
Manufacturing process STORE

26
 The manufacturing process of KCCL starts with etching and forming of aluminum
foil. In KCCL, automatic machines are used. The manufacturing process of KCCL is given
below:

 Stitching and Winding

Aluminum foil of 40m-110m has both anode and cathode foil. Here aluminum oxide is
sent for etching and forming. The etched and formed aluminum foil is wound either
with cello tape or glue. Every process is done automatically. Both aluminum and paper are
wound together. This is done so that the paper can sink in the chemical and the
electrolyte is formed. The paper used here is tissue type. This is later taken into a tank
and the chemical is fitted from there. All this is done in an air conditioned room as to
avoid contamination and also to maintain the temperature level within the plant, which
is a major requirement. The foil issued here is 3mm-150mm.

 Impregnation

Aluminum foil wound with paper is then fitted with a rubber bung. Then it is
put in a can and it is sealed with glue. To know electrolyte and chemical capacity it is
sealed with figures like 2.2/63 HS (smallest), 22/35 HS, 47/25 HS, etc,. The biggest
capacitor used here is initial motor start.

 Ageing and Testing

Ageing is a process through which electric voltage is given to the capacitor.

Then it is tested to see whether it is working properly and has the right voltage and
there is no short. The sealed coil goes for ageing and then it is tested. If the capacitor is
good it is sent for Quality Assurance. If it is tested bad then if re-ageing is possible, then
re-ageing is done and it is tested. If it cannot be re-edged, it is rejected. Ageing and testing
can be done both automatically and manually the capacitors are put in a trolley and
loaded. Voltage is passed. Then it is tested. Sometimes capacitors are tapped. This is manually
done for computer mother boards etc; only customer requirements.

27
  Quality control

After the testing of capacitors it is sent to the Quality Assurance department

so that it can be checked for proper functioning in order to get 100% satisfaction from
the customer.

 Packing

Only passed items are packed into multiples of hundreds and sent to finished
goods stores. It may be packed according to customers requirements like tape packing,
bulk packing etc.

 Maintenance

After putting the coil in the can it is sealed. Then the sealed capacitor is
washed with a type of acid is used to remove the stains or dirt on the can.

 Stores
The finished capacitor is then sent to store, from where it is sold to dealers on
the first come first serve basis.

PLANT ENGIEERING DEPARTMENT

28
 In KCCL, Plant engineering Department takes care of the maintenance of Keltrone.
Maintenance is that function of manufacturing management that is concerned with the
day-to-day problem of keeping the physical plant in good operating condition. The main
function of Plant Engineering Department is for maintenance of machines and also for
providing controlled environment for production activities, In KCCL, maintenance is
carried under 5 heads namely;

 Mechanical maintenance
 Electrical maintenance
 Electronics maintenance
 Preventive maintenance
 Civil maintenance

MAINTANENCE DEPARTMENT – ORGANIZATION CHART

29
 MECHANICAL
MAINTENANCE

ELECTRICAL
MAINTENANCE

PLANT MANAGER ELECTRONICS

MAINTENANCE

PREVENTIVE
MAINTENANCE

CIVIL MAINTENANCE

1) MECHANICAL MAINTENANCE

30
 Breakdown maintenance of equipment in case of breakdown of a predominantly
mechanical in nature.

Adjustment of production machines for ensuring continuous process capability

Operation of services equipment like air conditioning, plant air compressors etc.

Operation of water utility services, liaison with store to ensure proper inventory
control of mechanical space.

General administration of the section.

Ensure that proper procedures/instructions are communicated to him and see that
such procedures instructions are followed.

Any other responsibility supplementary or complementary to those mentioned above.

Officiate a department head in the absence of HOD

2) ELECTRICAL MAINTENANCE
Breakdown maintenance of equipment in case of breakdown of predominantly
electrical in nature.
Adjustment of production machine of a personality electrical in nature.
Operation and maintenance of electrical utility services.
Liaison with stores to ensure proper inventory control of spares electrical.

3) ELECTRONIC MAINTENANCE
Breakdown maintenance of equipment in case of breakdown of a predominantly
electronics in nature.
Adjustment of production machines of a personality electronic in nature.
Breakdown maintenance or repair of electronic utility equipment, assessing and
testing instruments and calibration of equipments.
Liaison with stores to ensure proper inventory control of spares electronics.

4) PREVENTIVE MAINTENANCE

31
 Making preventive maintenance plan and schedule.

Carry out preventive maintenance of all equipment under the schedule.

Commissioning equipment’s.

5) CIVIL MAINTENANCE

Planning and arranging maintenance of civil structure, buildings, roads and such other
facility.

Preparation of plan and estimates for civil work.

Supervision of civil work.

Keeping records pertaining to each work including measurement book.

Any other work complementary or supplementary to those mentioned above is

specifically assigned by the departmental head.

CALIBRATION DEPARTMENT

32
 Measurement are made using a of instrumental ranging from very simple to
extremely sophisticated. We must have confidence that all those measuring instruments are
giving us valid useful data that confidence is provided by Calibration.

Calibration is the set of operation of determining the values of errors of

measuring devices to traceable standard. The set of operation which establish under
specific condition, the relationship between values of represented by a material
measure or a reference material and the corresponding values by the standards.

CALIBRATION DEPARTMENT- ORGANIZATION CHART

HEAD OF DEPARTMENT

OFFICER IN CHARGE

TECHNICIAN
TECHNICIAN
TECHNICIAN

OBJECTIVES

33
 To control calibrate at prescribed intervals and maintain inspection measuring test
equipments used by Manufacturing Department and Quality Assurance Department so
that required measurement capabilities is maintained.
 Maintain calibrate records for complete set of instrument.
 Evaluation of external sources of calibration for adequate facility and also for
traceability to National/International standards.

ELEMEMENTS OF CALIBRATION
 Adequacy of standards
 Calibration
 Traceability
 Recall system
 Calibration records
 Labeling practice
 Calibration intervals and adjustment techniques
 Environmental controls
 Outside calibration source.

CALIBRATION PROCESS

Calibration makes sure reading that correct. Various steps make up the whole calibration
process for the company.

Calibration is used word wide the Head office of the calibration is at Paris. In India the
Main Branch is at Delhi. All other calibration departments in companies are said to be the
branches of calibration.

In Keltron, the calibration process starts with External calibration. All the meters of
Keltron are being calibrated using the different calibration devices. These calibration
devices are first calibrated externally from Fluid Control Research Institute, Palakkad and

34
Electronic Regional Test Laboratory (South), Trivandrum. Then all the meters of Keltron
are checked with these devices and they give a guarantee period for each meter so that
all these meters are recalibrated within this period. In short, they make sure that each meter
gives the accurate readings. The firm makes sure that all the equipments in the company
are calibrated before the guarantee period of the calibrating devices.

At the beginning of every year all the department gives a list of equipments to be
calibrated. Based on this list the calibration department prepares a scheduled of when to
calibrate the listed equipments are calibrated on the schedule.

Every calibrated meter is labeled to make aware the workers about the reading status
of the meter.

The meters are labeled as follows:

Green- Valid calibration i.e.; cleared for all use.

Yellow- cleared for limited use.

RED-instruments cannot be used for measurement

BLUE – calibration not required.

They maintain record of all the labeled equipments and give the copy of it to the
concerned department so that the workers can know what all measurements can be
obtained accurately in case the equipments has got a yellow label.

Thus calibration department strives to improve product quality which in turn will
help to improve the business results.

QUALITY ASSURANCE DEPARTMENT

35
 The Quality Assurance Department (QAD) function includes central examination and
administration, which has to be within an Organization.

It certifies automatically and free from the influence of production that has been
performed in accordance with specific procedure and material or components to meet the
preceded specification. KCCL has got a well dominated and implemented quality system.

Organization chart- Quality Assurance Department

Head of Department
36
 OIC/SIC IN PROCESS OIC/SIC FINAL OIC/SIC RECEVING
INSPECTION, FINAL INSPECTION. INSPECTION
INSPECTION & LIFE TEST RADIAL/AXIAL
OF MB/MS

IN PROCESS LIFE TEST FINAL FINAL RAW FOIL TEST

INSPECTION INSPECTION INSPECTION MATERIAL
RADIAL/AXIAL COMPOUNDS

INSPECTORS INSPECTORS INSPECTORS INSPECTORS

FUNCTIONS

37
 This department is primarily concerned with ensuring quality of the quality of the
product by way of inspection, which may be categorized as follows:

1. Raw Material Inspection

2. Patrol Inspection
3. Final Inspection

Raw Material Inspection

The materials which are imported for production are being inspected and the
quality is assured. Some materials require 100% conformance as specified. Those materials
that do not give 100% conformance are not accepted because it may adversely affect the
quality of the finished products. It is accepted on deviation confirming to the standard
fixed by the quality department. After the raw materials are imported it will be checked
with the company’s own standard, if there is major deviation, then at the same time if it
can be Utilized under certain conditions without affecting the end requirements, the
materials is cleared as acceptance on condition and is called conditional clearance.

RAW MATERIAL INSPECTION

38
PASSED [100% PASSED [100% PASSED [100%
CONFIRMING TO CONFIRMING TO CONFIRMING TO
SPECIFICATION] SPECIFICATION] SPECIFICATION]

In Process or Patrol Inspection

In KCCL, Quality Assurance continues when material are in Process. Here the inspector
goes to the inspection is done to check whether the product after each process satisfies
the confirmed promoters. If there is any critical problem, it will be reported the HOD and
action will be taken depending upon depending upon the nature of the defect noticed.

Outgoing Inspection

It is carried out for the finished goods. Here the inspection starts ageing and testing machine.
KCCL produce 500k-600k capacitors per day – quality controller checks the output by a
sample of particular units which is under the hire standards 10673. This is a standards
which is issued by the Government of India for all electronic equipments. The products
that fulfill the quality level specified are selected for sales. The defects are expressed in
percentage level, it will be withdrawn and further rework will be made. In case of
capacitors the parameters which is 100% vested by ageing and testing other promoter are
checked by sub-section of manufacturing department by method of sampling.

FINAL INSPECTION/ TEST

MANUFACTURING

39
 MANUFACTURING HOT TO
QUALITY ASSURANCE

COLLECT SAMPLES IS 10673

HOD HOD QA
MRB INSPECTION & MINOR
QA
COSTING

DISPOSAL STORES ACCEPTED IS IN

PASSED
ACCEPTED ON DEVIATION
RECEIPT

PRIMARY PACKING

FINISHED GOOD STORE

FINANCE DEPARTMENT

40
 Finance has been defined as the source of money. It studies the principle and raising,
administering and controlling of funds in business. The nature of financial management
refers to its functions, scope and objectives. The scope and coverage of financial
management have undergone fundamental changes. In the early year of its evolution it was
regarded as a branch of economics relating to the raising of funds. But now, in current
literatures pertaining to this growing discipline the scope has changed tremendously so
as to include in addition to the raising of funds, the efficient use of available resources.
This concept is now universally accepted and recognized.

Financial management is concerned with planning, organizing, directing and controlling

financial activities of an organization. It is concerned with sources and uses of the fund. It is
related with proper management of fund. The financial functions are:-

 Investment or long term asset mix- decision

 Financial or capital mix decision
 Dividend or profit allocation decision
 Liquidity of short-term asset mix decision

ORGANIZATION CHART-FINANCE DEPARTMENT

41
42
 FINANCE MANGER

PERSONAL SECRETARY

GENERAL ACCOUNTANTS GENERAL ACCOUNTANTS GENERAL ACCOUNTANTS

OFFICER IN CHARGE OFFICER IN CHARGE OFFICER IN CHARGE

(Production)

ACCOUNTANTS
ACCOUNTANTS TYPIST ASSISTANTS
ACCOUNTANTS
ASSISTANTS ASSISTANTS

WORK ASSISTANTS

CASHIER

HELPER

43
PROCEDURES

 Setting various financial performance standards, modifying these time to time.

 Preparation of master control budget based on department wise budget,
forward by Head of Departments.
7
 Monitoring of key financial ratios.
 Planning and implanting the growth strategy of the organization.
 Maintenance account, preparation of annual account, annual reports etc.
 Cost study and output.

WORKING CAPITAL MANAGEMENT

Managing funds are required for providing resources like material, man,
machine etc to sustain the operation of the company on a day to day basis. In
addition to owns funds, if the company requires additional working capital, the
terms are negotiated with the lending institutions. Agreement is also made with
bankers for non-fund assistance like establishment and letter of credit in finance
of overseas suppliers, banks guarantee etc.

DIVIDEND

The company has regularly paid dividend to its shareholders since 1985-86. The last
time it paid a dividend of 10% in year 1993-1994.

44
AUDIT

The company has efficient external auditors. Moreover there is efficient internal check
system also. Besides this statutory auditors appointed by the company law board
audit the accounts, records of the company. After completing the audit, copy of the
report is sent to the accountant and also presented before the shareholders. If there
are any comments from the auditors, shareholders, the company should provide
sufficient explanation to these comments. In addition to this ISO audit is also carried
out.

ACCOUNTING POLICIES

 Cash payment
 Cash receipt
 Bank payment voucher
 Bank receipt
 Journal voucher
 Purchase journal
 Sales journal
 General ledger
 Control
 Office cash

45
KEEPING ACCOUNTING RECORDS

Files maintained in the finance and accounts department are kept unlocked
shelves. Current ledgers, books, subsidiary registers, salary sheets are under the
custody of concerned personnel the asset register is kept with the HOD. Rank cash
books, journal books, salary records, purchase journal, sales day book and other
subsidiary register of previous years are kept in the record room adjacent to the
accounts departments. Vouchers pertaining to 8 years are kept in boxes mentioning
names of the vouchers and year on the boxes in the record room.

REVENUE ACCOUNTING POLICIES

The accounts are prepared under the historical cost of accounting and evaluated
on a going concern basis with revenues recognized and expenses accounted. Some
of the revenue accounting policies is:

 Fixed assets and depreciation

 Inventories
 Foreign currency transaction
 Deferred tax

46
 ENGINEERING AND DESIGN DEPARTMENT

For modern products it is useful to document and analyze the design logic. This
means starting with the desired product factors and then identifying the necessary
characteristics for Raw Material and Process steps, such as engineering.

In KCCL, the Engineering and Design Department is concerned with preparing bills of
materials, altering materials, giving technical support to the manufactured and making
design, according to the order to suit the customer requirements.

47
 ENGINEERING AND DESIGN – ORGANIZATION CHART

HEAD OF DEPARTMENT (ENGINEERING & DESIGN)

OIC/SIC (ENGINEERING & DESIGN) SIC (LIBRARY)

DESIGN CONFICATION LIBRARY

ENGINEERING (TECHNICAL)

OIC : OFFICER -IN- CHARGE

SIC : SECTION-IN-CHARGE

48
OBJECTIVES

 To bring down the product cost by 5% through Engineering and Design.

 To meet the customers requirement for utmost satisfaction of the customers.

RESPONSIBILITIES

 Preparation of bill of materials and design specification for electrolyte capacitors.

 Preparation of engineering, drawing and design specification and new product
introduction.
 Prepare cost data.

49
 HUMAN RESOURCE AND ADMINISTRATION

The basic job of management of any business is the effective utilization of available
human resource for the achievement of business objectives. The human resource in an
organization should be motivated and managed with utmost care to inspire, encourage
and impel them to contribute their maximum for the achieve of organizational objectives.
They are considered to be the valuable asset because it is people which make other
assets move.

In Keltron there is a specialized department known as personnel and administration,

which sees to both personnel and administrative functions. The employees experience range
from 12 to 25 years. The company has a Human Resource Development program whereby
training classes on the job is given. Key technical personnel are trained by collaborators
of suppliers of machinery to oversee on the processing of the capacitor and maintenance
of machinery.

50
 ORGANIZATIONAL CHART – HRD

GENERAL MANAGER (PERSONNEL & ADMINISTRATION)

MANAGER (PERSONNEL & ADMINISTRATION)

PERSONNEL ADMINISTRATIVE
OFFICER OFFICER

CLERICAL STAFF

ESTATE TRANSPORT SECURITY

51
RECRUITMENT AND PLACEMENT

Recruitment is the process of searching for the prospective candidates for the
employment and motivating them to apply for the same . This process of searching is
known as recruitment.

In Keltron, policy of recruitment is an ideal one. In Keltroe the source of recruitment is

external. Being a public sector company, as and when a vacancy arise the Personnel
Department determines the number of employees and notifies the employment exchange
and appropriate candidates are given by the exchange.

Once an offer to an employee has been extended, accepted then the final stage of
procurement function is conducted. This is called as placement. After selection the employee
is put on a six-month probation period. Only after this probation period his employments
will be regularized. Here, Personnel Department also checks the performance of employees.

TRAINING

When a person joins the organization he/she will be given induction training for a minimum
period of one month. After induction training, the person will be given on-the-job training for a
period of one year. Various other training programs are also arranged on the basis of need
criteria.

PERFORMANCE APPRAISAL

Performance of each executive and employees is evaluated through annual appraisal

forms. In case of non-executives performance appraisal forms are to be filled at the time of
promotion of workman. Promotion is given on the basis of the scores of the appraisal
forms.

52
WAGES AND SALARY

Keltron arrived at memorandum of settlement on 15 April 1996; in respect of wages,

allowances and fringe benefits; based on the approval of Government of Kerala, KSEDC
and Trade Unions. In MOS, the terms and conditions are applicable only for workman. It also
contains the rate of fixed DA. For other staff employees there are other MOS.

ADMINISTRATION OF STANDING ORDERS

In Keltron, Standing Orders Act 1946 is applicable to workmen in the industrial employment.
This Standing Order defines company management, workmen, trainee, leave, salary etc. It is
divided into different chapters namely service, workmen classification address and other
particulars, probation, seniority, temporary appointment, transfer, recognition, promotion,
salary, increment, leave etc.

ALLOWANCES AND BENEFITS

 Variable Dearness Allowances

It is the allowances given to the ordinary workers every month. It varies every three
months. It is fixed as per All India Consumer Price Index, 1960 series. According to
cost of living index VDA is given at 1% Basic Pay

 House Rent Allowances

This is an allowance given to an employee by his employer in order to
compensate the high rates prevailing in big cities. Keltron provides 10% of Basic
Pay.

53
  Conveyance Allowance
It is the allowances used to meet conveyance for performing office duties.
Workmen get Rs.25 as CA.

 Shift Allowances
The general shift is from 8:30am-4:30pm, and other three shifts are from
7:00am- 3:00pm, 3:00pm-11:00pm, and 11:00pm-7:00am the employees who are
in the other three shifts apart from general shift are given compensation known
as shift allowances being Rs.5, Rs.10, and Rs.25.

 Food Subsistence Allowance

There is reduction in the price of food by the company to the employees. The
employees should give only one-fourth of the cost of the food. Daily a cup of tea
is free to all employees.

 Medical Reimbursement
All employees are eligible for medical reimbursement scheme.
This scheme also includes family members. The amount of benefit is given on the
term of service of the employees.

PROVIDENT FUND

It is the fund that is provided in the future. The fund is credited by a part of the
amount deducted from the salary of employees every month at ascertain rate. When the
retires from the company, he/she receives this amount as lumsum along with interest on
it. In Keltron 12% of the salary is given as PF. The salary being inclusive of allowances.

54
BONUS

Yearly bonus is given to employees at a minimum rate of 8.35% on salary up to

Rs.3500/month. In this case salary includes Basic pay and Dearness Allowance. Festival
Allowances should be given to employees at the time of festivals. Marriage Allowances, Home
loan, Vehicle Loan are also provided. Salary is either given directly to employees or
deposited in bank as per employee’s instructions.

BLOOD DONATION FORUM

Keltron is having blood donation forum with assistance from employees for donating
the blood to the needy people. The IT Department helps in checking out blood group. The
management has also decided to allow one day leave for the blood donor.

HOSPITALIZATION LEAVE

Workmen not coming under the preview of ESI scheme will be permitted
hospitalization leave to an extant of 30 days/ 3 years in case of government hospital.

TIME KEEPING

Every employee is given a separate card with a specific number having four digits. The
workers, employees, supervisors and executives have different numbers. A Muster Role is kept
by the organization. Electronic Punching System is used in Keltron to record the time of
entry and exit of each employee. In second half late coming is not allowed. Attendance is

55
made an important element of employee performance. An employee who is absent foe more
than a fixed number of days, is alerted and if required necessary action is taken.

WELEFARE MEASURES

 Housing loans
 Reading Room
 Facility for sitting
 First aid equipment
 Canteen
 Library

GRIEVANCE FACILITY

When there is a grievance on the employee he/she has to inform his immediate
verbally. If the grievance is not redressed he/she can submit the grievance in writing to
the Head of the Department. If he/she grievance is not settled the matter can be taken
to the Managing Director whose decision will be final.

56
 RESEARCH & DEVELOPMENT DEPARTMENT

The department of Scientific and Industrial Research, Ministry of Science and

Technology, Government of India has approved the in-house research and development
activities of the company.

RESEARCH AND DEVELOPMENT – ORGANIZATION CHART

HEAD OF DEPARTMENT

SIC SIC
PRODUCTION ELECTROLYTE Sr. TYPIST
DEVELOPMENT DEVELOPMENT

TECHNICAL TECHNICAL
APPRENTICE APPRENTICE

57
SIC: SECTION- IN- CHARGE

Sr. : SENIOR

FUNCTIONS

The main functions of Research and Department are as below:

 Developing high, medium and low voltage forming

 Developing technology for editing high voltage Aluminum foil
 Updating the manufacturing technology of electrolytic capacitors
 Developing electrolyte required for the manufacturing of electrolyte capacitors.

Research and Development plays a crucial role in electronic industry. Innovation and
quality limited are major concerns of this department. If the company has to survive in
the present highly competitive market R&D has to come out with innovative product
and constant up gradation of technology. KCCL allocates 0.5% to 1% turnover for R&D
purpose. Research is going on the development of technology for the manufacturing
of electrolyte indigenously. The R&D is trying for the up gradation of technology by
reducing the size of the component par with the Japanese product. The department is
trying for the vertical integration of the manufacturing process.

58
 ELECTRONIC DATA PROCESSING DEPARTMENT

Computer has become an essential part of organizational proceeding because of the

technology and the data to be processed. Information processing is a major societal activity.
Data Electronic Data Processing helps in inter-organizational electronic exchange of
business documents in a standard format. Computer data processing has prevailed data like
Finance, Personnel, Marketing etc.

ELECTRONIC DATA PROCESSING- ORGANIZATION CHART

EDP ASSISTANT MANAGER

EDP STAFF EDP STAFF

59
 In KCCL, the EDP department was started on 1988 with self centered computer. In
1994, the company installed Local Area Network(LAN) with 15 terminals. This department
can process various types of information such as-

 Materials requirement
 Pay-roll
 Personnel information system
 Raw Material inventory
 Finance
 Finished goods and dispatch

The scope of EDP in an organization is limited but the data that is obtained, the
cost of procuring, processing and storing the data and value of information to the users.

The management plan is to install a separate system to each department by

connecting it to central EDP unit. Through EDP department the company has achieved
lots of new facilities and saving time with the help of new methods, keeping goods in
stores and so on.

RESPONSIBILITY OF HOD

 Entering the data

60
  Develop program for various application required by other department head.
 Compile and present the data to various departments for analysis and control in
prescribed format.

OPERATING SYSTEM

 FOX PRO
 FOX BASE

FUNCTIONS OF EDP

 Data acquisition
 Data processing
 MIS interface which helps to generate a lot of information based on data.

61
 ETCHING AND FORMING DEPARTMENT

Keltron is also into etching and forming of aluminum foil as part of

diversification, modernization and expansion plant.

FORMING OF ALUMINUM FOIL

Etching and formed aluminum foils are the major raw materials for the production
of electrolytic capacitors. The manufactures of electrolytic capacitors have been importing
this item since the technology for etching and forming of aluminum foil is not available
in India. The company for the first time in India developed the technology for forming
of high voltage and low voltage foil in its in-house forming plant. The plant was
designed and developed by the engineer of the company and forming machine is
fabricated locally.

ETCHING PROJECT

Etching technology for etching of aluminum foil is yet to establish in India. The
DOE approved the research project for 3 years costing Rs 40 lakhs for development of
high voltage etching technology in the company in-house plant. The company has already
developed indigenously the technology for the etching of low and medium gain
capacitors.

62
SWOT ANALYSIS

The strength of Keltron is a team of experienced technocrats with smart supporting staffs. It is
the only manufacturer of capacitors in Kerala and its quality is known worldwide.

The weakness is the irregular performance of the organization due to the periodical
changes in government policies especially the imports policy. In public sector
organizations diversification is very slow unlike the private sector, which is also a
weakness. Also the machines are getting obsolete. Also in government organizations recruitment
is a problem.

The opportunities are as the industry is in the electronic field diversification of

products opens ample opportunities for the organization.

The threats are, globalization witnesses dumping of cheap electronic products in

India, which is a threat of Keltron as it is producing capacitors of a higher value.

63
 CHAPTER 4

FINDINGS AND RECOMMENDATIONS

FINDINGS

 Keltron produces high quality products but at a comparatively higher price than its
competitors.
 As keltron imports Raw material, import cost is high leading to a loss as the sales price is
not able to cover the loss.
 Globalization has had a bad effect on the company.
 Government control has also a bad effect on the company, being there has been no
recruitment since many years.
 Even though Keltron has short comings, being an electronic goods manufacturer it has
every chance to improve.

RECOMMENDATIONS

 The company should try to use its production capacity to the maximum.
 The company should try to sell it product at competitive price.
 Reduction of cost is a must for the company to survive.
 There is a vast scope if the company focus on the IC capacitors since the present demand
is high and is expected to be so in the coming years.

64
 CHAPTER 5

CONCLUSIONS

A nation’s future and its ability to compute in the global market depend greatly
on how it generates new ideas and innovations in science and technology. Keltron has
initiated steps to create a knowledge center that would catalyze the process of knowledge
assimilation as well its dispensation. Keltron is one of the leading capacitors
manufacturing companies in Kerala. It is an ISO 9001 certified functioning company. It has
always been able to provide high quality products. It also has a super Research and Design
section that help in providing capacitors according to the needs of the customers.

It has a committed set of technocrats who work tirelessly for the accomplishment
of the goals of the company. The company provides employment for the handicapped
people giving them high respect. It has a very eco-friendly surrounding helping its
employees to keep a cool atmosphere.

Keltron after its bad play has found a stage where it can make profits. As an
electronic goods manufacturer, it has a bright future ahead, a future belonging to
innovation and simplicity of electronics.

65
BIBLIOGRAPHY

 Production and Operation Management

K.Aswathappa and k. Shridhara Bhat

 Marketing Management

Philip Kotler

 Human Resource Management

P.Subba rao

 Financial Management

I.M.Pandey

 Catalogues, Brochures, Annual Reports of Keltrone

 Websites

www.keltrone .org.com

66
 www.wikipedia.com

www.google.com

Balance Sheet

Particulars Amount in Lakhs

Liabilities 2004 2005 2006 2007 2008
Share capital 242.45 242.5 553.45 553.45 553.45
Secured loan 960.73 950.7 990.36 876.26 991.74
Unsecured loan 1257.02 1351.81 1063.87 1105.77 1116.42
Current liability 837.85 679.48 729.44 791.54 737.53
Provision 252.83 299.19 340.15 369.07 392.29
Total 3550.88 3523.63 3677.27 3696.09 3791.43

Assets 2004 2005 2006 2007 2008

Fixed Assets 307.34 257.6 254.76 225.88 200.99
WIPC 2.99 1.34 - 0.71 1.15
Development 55.69 21.37 21.37 21.37 21.37
expenses
Inventories 1536.39 1481.44 1404.53 1288.73 1371.79
Debtors 981.88 714.24 649.92 599.2 552.03
Cash and Bank 125.72 110.4 125.89 82.67 280.14
Balance
Loan and 332.69 307.38 290.1 296.4 294.32
advances
Profit and loss 232.17 706.13 1014.95 1263.4 1314.78
Account
Total 3574.87 3617.9 3761.52 3778.36 4036.57

67