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O/E/N India Ltd.

INTRODUCTION

In the Indian electronics industry for over 35 years the name O/E/N India Ltd. has been
synonymous with precision, high quality electromechanical components like relays, switches,
trimming potentiometers and allied assemblies.

Since 1969, O/E/N has been market leaders for all products under its manufacturing range and
caters to market segments like industrial instrumentation & controls, automotives, strategic
electronics and high end consumer electronics with emphasis on quality.

The state of the art assembly and manufacturing facilities of O/E/N covering over 18000m2
spread over 2 suburbs of Cochin and 1 in Peenya in Bangaloru. O/E/N has their own captive tool
design center and well equipped tool room capable of producing high precision tools and
moulds. In-house preproduction pressed metal parts with allied annealing and plating, finishing
plants and moulding shops for moulded plastic parts.

The quality management system of the company is approved to ISO 9001 with automotive
production lines being approved to ISO/TS 16949. The environmental systems of the company
are approved to ISO 14001. Individual products are covered by approvals from defense or
telecom authorities or by UL, CSA or VDE.

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


Government of India, and is competent to develop high precision miniature, electromechanical
components and allied subsystems. R&D is geared to work on acquisition of technology as to
transfer technology top business partners.

One of the thrust areas of business is contract manufacturing. O/E/N has got plants identified
under Electronic Hardware Technology Park (EHTP) scheme for duty free inputs for exports.
There are several companies from outside India who utilize O/E/N’s expertise in manufacturing
to produce low cost high quality products.

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O/E/N India Ltd.

Design of the study

Objective of the study

Textbooks, Journals, Libraries etc. can provide only limited amount of knowledge about the
activities inside an organization. In the modern world of improved knowledge and technology,
management students who have clamor for taking corporate jobs should be aware of various
functions within an organization. For getting detailed knowledge about such things, it is better to
have a close observation about such functions. An organizational study also provides hands on
experience to them. Books and classroom lectures give more emphasis to theoretical aspects of
management and concept development. But in the actual practice things may not be exactly the
same as theory. The process and activities in an organization depends on the products, size of
operation, competitiveness its organizational framework, and like. The present organization
study is undertaken with certain clear-cut objectives. They can be grouped as:

Primary objective

To acquire knowledge about the functions of various departments in O/E/N towards the
achievement of its organizational goals.

Secondary objective

To compare theoretical knowledge with actual practices.

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

To study how various departments coordinate with each other.

To experience the organizational processes at various levels.

INDUSTRY PROFILE

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O/E/N India Ltd.

National Profile

The Electronics Industry in India took off around 1965 with an orientation towards space and
defense technologies. This was rigidly controlled and initiated by the government. This was
followed by developments in consumer electronics mainly with transistor radios, Black & White
TV, Calculators and other audio products. Colour Televisions soon followed. In 1982-a
significant year in the history of television in India - the government allowed thousands of colour
TV sets to be imported into the country to coincide with the broadcast of Asian Games in New
Delhi. 1985 saw the advent of Computers and Telephone exchanges, which were succeeded by
Digital Exchanges in 1988. The period between 1984 and 1990 was the golden period for
electronics during which the industry witnessed continuous and rapid growth.

From 1991 onwards, there was first an economic crises triggered by the Gulf War which was
followed by political and economic uncertainties within the country. Pressure on the electronics
industry remained though growth and developments have continued with digitalization in all
sectors, and more recently the trend towards convergence of technologies.

After the software boom in mid 1990s India's focus shifted to software. While the hardware
sector was treated with indifference by successive governments. Moreover the steep fall in
custom tariffs made the hardware sector suddenly vulnerable to international competition. In
1997 the ITA agreement was signed at the WTO where India committed itself to total
elimination of all customs duties on IT hardware by 2005. In the subsequent years, a number of
companies turned sick and had to be closed down. At the same time companies like Moser Baer,
Samtel Colour, Celetronix etc. have made a mark globally.

Current Scenario

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O/E/N India Ltd.

In recent years the electronic industry is growing at a brisk pace. It is currently worth $10 Billion
but according to estimates, has the potential to reach $ 40 billion by 2010^. The largest segment
is the consumer electronics segment. While the largest export segment is of components.

The electronic industry in India constitutes just 0.7 % of the global electronic industry. Hence it
is miniscule by international comparison. However the demand in the Indian market is growing
rapidly and investments are flowing in to augment manufacturing capacity. India however
remains a major importer of electronic materials, components and finished equipment amounting
to over US$12 Billion in 2005^. This is not a desirable situation and local manufacturing has to
keep pace with growing local demand.

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

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

➢ Display technologies
➢ Entertainment electronics
➢ Optical Storage devices
➢ Passive components
➢ Electromechanical components
➢ Telecom equipment
➢ Transmission & Signaling equipment
➢ Semiconductor designing
➢ Electronic Manufacturing Services (EMS)
➢ The growing Indian market for electronic products is over US$25 Billion and is growing
at about 30% per annum! At this rate it is projected to exceed US$ 70 Billion by 2010
and US$158 Billion^ by 2015. This growth has attracted global players to India and
leaders like Solectron, Flextronics, Jabil, Nokia, Elcoteq and many more have made large
investments to access the Indian market. In consumer electronics Korean companies such
as LG and Samsung have made commitments by establishing large manufacturing
facilities and now enjoy a significant share in the growing market for products such as
Televisions, CD/DVD Players, Audio equipment and other entertainment products.

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O/E/N India Ltd.

➢ The growth in telecom products demand has been breathtaking and India is adding 2
million mobile phone users every month! With telecom penetration of around 10%, this
growth is expected to continue at least over the next decade. Penetration levels in other
high growth products are equally and growth in demand for Computer/ IT products, auto
electronics, medical, industrial, as well as consumer electronics is equally brisk.
Combined with low penetration levels and the Indian economy growing at an impressive
7% per annum, the projection of a US$150 Billion^ + market is quite realistic and offers
an excellent opportunity to electronics players worldwide.

^From www.elcina.org

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O/E/N India Ltd.

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O/E/N India Ltd.

Company Profile

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


Manufacturing plants are located in the suburbs of Cochin and Bangaloru with over 18,000
square meters of factory space. They offer a comprehensive range of products with applications
in most segments of Electronic Industry including Communications, Automotive, Strategic
Industrial Controls, Instrumentation and Consumer Electronics. The quality management system
of the company is covered by ISO 9001: 2000 Certification.

Factory infrastructure include fabrication plant for pressed parts, plastic moulded parts,
electroplating facilities, Research & Development Laboratory, sophisticated Tool Room and
Quality Assurance & Test Labs. Apart from regular production, O/E/N offers facilities for
contract manufacturing and already exports considerable volumes.

“We are the customer link to the future. We help turn/transform customer concepts to product
applications. We create made to order products, to customer specifications. The hard earned
reputation for quality products & services has helped us enhance customer base. Clients choose
O/E/N and stay with us because we provide world class technical and reliable support. Customer
care and satisfaction is part and parcel of our work culture. We nurture continuous innovation,
team work, employee involvement and stay focused on customer needs. We have successfully
established customer loyalty by working towards establishing lesser gap between customer wants
and products/services we deliver. In fact, O/E/N is the virtual supplier of Electromechanical
Components.”-website of O/E/N

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O/E/N India Ltd.

History of O/E/N

O/E/N India Ltd. was formed in 1968 as a joint venture with OAK Electro/Netics Corporation,
U.S.A under the leadership of founder M.D, Late Mr. K.A Mathew. At the inception, 45% of the
equity shares were held by OAK Industries Inc, U.S.A and 25% by Kerala State Industrial
Development Corporation and the balance primarily by the directors and their associates. The
abbreviation O/E/N was devised out of the name of the collaborator.

The OAK group was a pioneer in the field of professional grade rotary switches, keyboards, and
push button switches, miniature and power relays, miniature trimmer potentiometers, controls
and control systems serving many segments of electronic industries- appliances, manufacturing,
industrial, aerospace, military and other fields.

Until O/E/N India went into production, entire requirements of the country for these products
were being imported from the U.S and the U.K. The major customers for these products were
Indian PSUs like BHEL, HAL, ISRO, DRDO, HMT, etc.

The company started with OAK designs and eventually added new designs in due course. The
company reached its break even in 1970 and declared its first dividend in the year 1973. In 1980,
the company started a sister concern O/E/N Micro Systems to take up manufacturing of
computer peripherals and in 1984 O/E/N Connectors India Ltd. in collaboration with FCI
Connectors, France. By 1985, the company set its second manufacturing plant in Peenya,
Bangaloru.

Till 1990’s the company was enjoying a monopoly in the market with no competition from the
local businesses. However with the liberalization policy of the 90’s, the company was forced to
face severe competition from the global brands. It took some time for the company to react and
change itself from the slow pace culture generated by the monopolistic leadership to that of a
flexible innovation culture needed in the midst of a competitive market. The growth of the
company was dampened though losses were avoided.

Unable to change with the times, O/E/N Microsystems was forced to be closed after enviable
years of growth in the startup period and closed down in the year of 2001. The company was
subsequently merged to the parent company in 2003. FCI also increased its share in O/E/N
Connectors to 51% and then to 65% in 1996.

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O/E/N India Ltd.

The company realizing the faults reinstated its position in the early 2000s entering into tie-ups
and technological transfer agreements with major global players to bridge the technological gap.
The company had invested in enriching its core competency in electromechanical sub systems
development and had entered into contract manufacturing. The policy changes reflected more
emphasis on value addition and value creation.

(Note: The initial collaborator M/S OAK Electro/Netics Corporation was subsequently renamed
as OAK industries Inc. The brand OAK is no more and the equity held by OAK was bought back
by the company in a phased manner. )

Milestones of O/E/N

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


Corporation, USA. Plant location at Mulunthurthy
➢ 1969: Commencement of production
➢ 1970: Company reaches Break Even
➢ 1973: Maiden dividend was declared
➢ 1974: Company achieves target of Rs. 10 million turnover
➢ 1976: Started in-house tool room
➢ 1977: Company starts R&D facility
➢ 1980: QA lab expanded with sophisticated tool equipments
➢ 1980: OEN Micro Systems; a sister concern started
➢ 1981: OEN India Connectors started in collaboration with FCI SA, France
➢ 1983: Second plant of O/E/N India was setup; located at Peenya
➢ 1993: Becomes an ISO 9002 Company; second such company in Kerala to achieve this
fete
➢ 1993: OEN India Connectors become FCI OEN Connectors after FCI increases stake in
company to 51 %
➢ 2001: ISO 9001-2001 company; first in Kerala

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O/E/N India Ltd.

➢ 2001: After initial success and failure to achieve expected profits in subsequent years
OEN Micro Systems was closed and merged with the parent company, O/E/N India Ltd.
➢ 2003: O/E/N becomes first company in Kerala to be certified most sought after
international quality systems standard ISO/TS 16949-2002
➢ 2003: Company incorporates ERP
➢ 2004: ISO 14001:1996 & OHSAS 18001:1999 were achieved
➢ 2006: Achieves another target of Rs. 50 crores profit
➢ 2006: Achieves coveted ‘Ford Q1’ preferred quality status

Business Mission

➢ Attain leadership position


➢ Create wealth
➢ Be the best in the business

Business Vision

➢ Centre of technological excellence


➢ Market leader in electromechanical components in country

Business Goals

➢ To attain a respected presence in the industry


➢ To build progressive relationships
➢ To improve organisational strengths
➢ To fine tune competitive advantage
➢ To offer unique services
➢ To undertake customizing of products

Quality Policy

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O/E/N India Ltd.

“Quality is our technology to attain most preferred manufacturer and supplier status through
strong commitment and continued improvement”

Material Policy

“Manage the supply chain to ensure satisfaction of all our customers by supplying quality
products at optimum prices at the right time”

Social Obligations

O/E/N has formed a foundation which provides medical treatment for underprivileged in society.
It also provides scholarships to children of employees and maintenance charges for schools and
colleges

Major Customers

○ American Power Conversion(APC)


○ GE Medical Systems
○ TATA
○ M&M
○ Johnson Lifts
○ JCB India
○ ITI Ltd
○ Ford India Pvt. Ltd.
○ Bharat Electronics Ltd.
○ L&T Ltd.
○ ABB India Ltd.
○ Hyundai

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O/E/N India Ltd.

Other Major players in the Industry

○ Electrical Associates
○ Indian Electro Trade
○ Invented Electro Systems Pvt. Ltd.
○ Minitek
○ Ramesh Electronics
○ Power Max
○ Allied Controls Inc.
○ American Relays Inc.

Products Profile

Industrial Relays

➢ Series 31 Enclosed, Plug in


➢ Series 31 10 A Enclosed Relay
➢ Series 31 6 A Open Relay
➢ Series 32 2 Pole 20 A Metal Can Relay
➢ Series 51 10 A Indicator Relay
➢ Series 33 Industrial Relay
➢ Series 37 Industrial Relay
➢ Series 38 Industrial Relay

Telecommunication/Signal Relays

 Cradle Relays
➢ Series 36 1A Sensitive Relay
➢ Series 77 1A Telecom Relay
➢ Series 67 3/5/7A, Versapack Relay
 Signal Relays
➢ Series 34 Flat Pack Relay
➢ Series 42 Pigmy Relay

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O/E/N India Ltd.

➢ Series 52 DIP Reed Relay


➢ Series 56 Miniature Relay

Hermetically sealed relay

➢ Series 30 Crystal Can Relay

Power Relays

➢ Series 57 2/6 A Miniature PCB Relay


➢ Series 58 10/16A Sealed PCB Relay
➢ Series 59 10/16A Miniature PCB Relay
➢ Series 61 5A Sensitive PCB Relay
➢ Series 62 25A PCB Relay
➢ Series 63 25A Spaded Terminal Relay
➢ Series 81 PCB Relay
➢ Series - 68 Miniature Power Relay

Automotive Relays

➢ Series 35 Medium Power PCB Relay


➢ Series 35 Heavy Duty PCB Relay
➢ Series 53 35/70 A Power Relay
➢ Series 73 20 A Sealed Relay
➢ Series 74 20/30 A 1C Relay
➢ Series 76 Mini PCB Relay
➢ Series 78 Power Relay

Rotary Switches

➢ Series 11 (AM) Switches


➢ Series 12 (J/JC) Switches
➢ Series 13 (OM) Switches
➢ Series 14 (AML) Lever Switch
➢ Series 15(HM) Switches
➢ Series 16 (LORLIN CK)Switches

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O/E/N India Ltd.

Other Switches

➢ Series 22 Snap Action Micro Switch


➢ Series 25 Rocker Type DIP Switch
➢ Series 27 Slide and Piano Type DIP Switch

Series 44 Potentiometers

Organizational Chart
Sr.
Managing
CGM
AGM
GM
AGM
Sr.
Executive
Board
Manager
AGM
GM
AGM
CGM
GM
Finance
Technical
Eng.
MKTG
of
Eng.
Director
Directors
VP
MKTG
Cust.
R&D
MFG
HRD
Process
Tools,
Services
Resources
Care
Fabrication
Eng.
and plating

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O/E/N India Ltd.

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

Board of Directors

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O/E/N India Ltd.

➢ Pamela Anna Mathew (MD)


➢ Venu Nellar
➢ Sarah Mathew
➢ Mathew K Mathai
➢ Babu Paul D
➢ P K Kurien
➢ Sunela Sarah Thomas

Registered Office

O/E/N India Ltd.

Vytilla

P.B No. 1952

Cochin-682019, Kerala, India

Bankers

✔ Centurion Bank of Punjab


✔ Bank of India

Employee Strength of O/E/N India Ltd.

Mulunthurthy Vytilla Peenya


Executives 126 19 9
Non-executives 409 17 176
Worker/Trainees 5 13

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O/E/N India Ltd.

Apprentices 409 26
Total 949 36 224
Grand Total 1209

Quality System Certification

 ISO/TS 16949:2002
 ISO/TS 9001:2000
 ISO 14001:2004
 OHSAS 18001:1999
 FORD Q1 Preferred Quality Status

Finance Department

Departmental Structure

Assistant
Cost
Senior
Senior
andAccounts
Manager
Accounts
Manager
Officer
Staff

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O/E/N India Ltd.

Finance department is the life blood of the business. So in any organization the most important
department is Finance Department. Without this department no organization can work smoothly.
O/E/N also has an efficient department for Accounts and Finance. Finance department is
concerned with planning and controlling of the firm’s financial resources.

The important objectives of the finance department include:

• Preparation of corporate plans and budgets.

• Financial planning cost control and ensuring uniform and correct observation of
financial disciplines of the company

• Monitoring the progress of budget achievements

• Providing accounting services to all levels ensuring updating of systems procedures


for the same.

• Advising management on funds utilization and its implementation.

• Vetting of all investment proposals, certain of new assets, new posts etc. From the
point of financial feasibility

• Evolve an audit manual

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

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

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


Government statutory bodies, service providers etc

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

• To assist all types of audit work.

• To prepare MIS as required by the management

• To complete all Budget works.

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O/E/N India Ltd.

• To manage cash proper to maintain liquidity

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

• To make proper entries in books of accounts and extracts reports like Trial
balance, P&L A/c , Balance Sheet on a time bound basis

Significant Accounting Polices:

Every organization has its own accounting policies. O/E/N also has its own accounting policies.
The following by the company:

a. Fixed Assets

Fixed Assets are started at cost of acquisition or construction less


depreciation. All costs relating to the acquisition and installation of fixed
assets are capitalized. Assets and liabilities are consistently being recorded
at historical costs of the company and therefore they are not adjusted to
reflect the change in value in the purchasing power of money
b. Investment

All investments are valued at cost.


c. Inventories

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


valued at the cost on weighted average method

• Finished goods are valued at cost

• Goods in transit are valued at cost

a. Sales

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O/E/N India Ltd.

Sales are recognized upon delivery of products and are recorded inclusive
of excise duty but are net of trade discount, sales tax return.
b. Depreciation

Depreciation on fixed assets has been provided as per the rates prescribed
in scheduled XIV of the Companies Act of 1956. Under written down
value at any method depreciation on additions and deletions of fixed assets
is calculated on prorate basis
c. Retirement benefits

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


from time to time. The gratuity fund created to the company has been
approved by the income tax authorities. The net assets enable the fund to
be fully discharged by the company’s obligations in respect of gratuity,
payment of the employees etc.
d. Scraps

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


several sections such as salary/wages, provident fund, loans, over time
allowances, dearness allowances, etc each section is handled by one
person or two
e. Accounting policies

The financial statements are prepared under the historical cost convention
on an accrual basis and in accordance with the mandatory accounting
standards issued by the ICA and relevant provisions of the Companies
Act, 1956.

f. Excise duty

Excise duty has been accounted on the basis of both payments made in
respect of goods cleared as made by provisions made for finished goods
lying in the factory warehouse

g. Research and Development

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O/E/N India Ltd.

Capital expenditure on Research and Development is treated as addition to


fixed assets and included in the respective heads under fixed assets.
Revenue expenditure on research and development are charged to profit
and loss account.
h. Proposed Dividend

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


pending approval at the AGM
i. Contingent Liabilities

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


Accounts forming part of accounts
j. Deferred Taxation

Deferred tax asset has been determined taking into account the timing
difference in respect of depreciation and terminal benefits and is
recognized in the profit and loss account

k. Export Incentives

Export incentives in the form of Credit earned under Duty Entitlement


Pass Book Scheme is treated as income in the year of export at the
estimated realizable value/actual credit earned on export during the year.

O/E/N has consistently made profits over the many years of its functioning in spite of
unfavorable conditions. Sales during 2006-07 registered a growth of 33% over the previous year
of 47.12 crores.

Working capital management

O/E/N conducts its financial dealings with Bank of India & Centurion Bank of Punjab. The
banks can realize assets of the company in case payment is not made on time. Term loans have

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O/E/N India Ltd.

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

Share Capital Structure:

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


• Issued, subscribed and paid up capital: 50, 99,260 shares of Rs. 10 each fully paid up.
• Equity shares
• Borrowings from the two above said banks
• Fixed deposits

Investments:

O/E/N held 91905 fully paid up equity shares of FCI OEN Connectors ltd. Promoted by O/E/N
India Ltd. In 1981. The company has since sold above said shares @ Rs. 700/share to M/s FCI
SA, France. It currently holds 7200 equity shares of face value Rs. 10 in Bank of India Ltd. and
2001 equity shares of face value Rs. 10 each in OEN Electronics Pvt. Ltd. and 20000 equity
shares of face value Rs. 10 in Kerala Environ Infrastructure Ltd.

Turnover for the last ten years:

Year Rs. In Crores


1997-98 22.14
1998-99 21.05
1999-00 26.15
2000-01 30.82
2001-02 31.07
2002-03 35.70
2003-04 37.74
2004-05 39.05
2005-06 46.85
2006-07 55.65

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O/E/N India Ltd.

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

Year Rs. In Crores


1997-98 31.39
1998-99 27.53
1999-00 41.89
2000-01 45.87
2001-02 49.09
2002-03 79.05
2003-04 65.94
2004-05 66.53
2005-06 56.96
2006-07 81.78

Dividend

The dividend paid for the equity shares was 10% for the last ten years. The company has paid
Rs.5099260 as dividends in the year 2006-07.

Earnings per Share (EPS) over the years:

Year Rs./share
1997-98 2.22
1998-99 2.01
1999-00 3.37
2000-01 5.57
2001-02 3.78
2002-03 7.43
2003-04 5.54

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O/E/N India Ltd.

2004-05 6.89
2005-06 4.92
2006-07 6.05

Exports and inland sales over the years:

Sales In crores
Year
Exports Imports
1997-98 2.60 23.06
1998-99 1.05 23.53
1999-00 7.28 25.42
2000-01 1.30 34.20
2001-02 4.42 30.70
2002-03 3.53 36.41
2003-04 5.45 36.77
2004-05 5.85 38.94
2005-06 8.59 43.70
2006-07 7.94 54.75

Net Worth of the company over the years:

Year Rs. in millions


1997-98 142.957
1998-99 147.888
1999-00 159.601
2000-01 183.987
2001-02 160.959
2002-03 172.173
2003-04 194.197
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O/E/N India Ltd.

2004-05 216.162
2005-06 235.443
2006-07 260.336

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

Paid up capital: Rs. 50993

Reserves and surplus: Rs. 209344

Secured loans: Rs. 99846

Unsecured loans: Rs. 31952

Deferred tax liability: Rs. 21419

Borrowings:

A term loan of Rs. 4.85 crores has been availed from Bank of India has been repaid to the extent
of Rs. 0.43 crores during 2006-07. The balance outstanding in the above term loan as on 31st
march 07 is Rs. 3.074 crores

Reserves & Surplus:

Out of the profit made in 2006-07 an amount of Rs. 2.40 crores has been transferred to General
Reserve Account. Together with this, the balance as on 31.03.07 stood at Rs. 20.934 crores.

Profit In crores
Year Gross Net
Profit Profit
1997-98 3.13 1.21
1998-99 2.75 1.09

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O/E/N India Ltd.

1999-00 4.18 1.83


2000-01 4.58 3.04
2001-02 4.90 2.06
2002-03 7.90 3.78
2003-04 6.59 2.82
2004-05 6.65 3.51
2005-06 5.69 2.51
2006-07 8.17 3.08

Ratio Analysis

Current Ratio: Current ratio= Current assets/Current liabilities

The ratio for the year 06-07 is 2.587 while for the previous year it was 2.585. This shows the
company’s short term solvency, i.e.; the ability of the company to meet its short term loans. The
ratio provides a margin of safety for the creditors. It is an index of the firm’s financial stability.

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

Net Profit ratio = Net Profit/Sales*100

The ratio for the year 06-07 is 5.55 while for the previous year it was 5.36. As is evident from
the analysis a slight increase in the ratio has occurred which shows better profitability than the
previous year. The usefulness of the ratio is for proprietors. It is an index of efficiency and
profitability of the business.

Engineering Service Department

Departmental Structure

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O/E/N India Ltd.

GM
Technical
Engineering
Executives
operator-
Services
Electronic
Electrical
maintenance
maintenance
maintenance

The engineering service department is responsible for the monitoring of the overall mechanical,
electric and electronic failures of the company. Maintenance in this department is majorly
classified into electric, electronic and mechanical maintenance.

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

• Break down maintenance


• Predictive maintenance
• Preventive maintenance
• Assure continuous power supply to all departments
• Alternate power generation on power failure
• Water availability
• Waste water treatment
• Document submission to pollution control board

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Research and Development Department

Departmental Structure

Executive,
Executive,
Asst.
CGM
AGM
Designers
Operators
Asst.
Manager
Engineering.
R&D
Manager
Product
Design
& Document
Development
Resources
R&D control

Research and development (R&D) department is mainly involved with the design and
development and the betterment of existing products. Thus, the major objective of R&D is to
develop quality products based on ‘cutting-edge’ technology. The company R&D facility
operates over a wide range of electronic research and applications. The facility is a self contained
centre with well equipped laboratories and multi disciplinary team of professional design
engineers.

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

a. Products provided by the customer according to their specifications


b. Existing products available in the market not
c. Existing products with additional features

The major phases of new product development are:

1. Planning and defining program or project: This stage is the initial stage in the long
process of R&D. The initial stage is concerned with identifying what kind of product is to
be made and it is feasibility in creation (financial, conceptual, and process).

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2. Product design and development: In this stage, the department usually uses the PRO-E
software to design the finished product. Along with this the product and the tools are also
designed. The manufacturing of the tools also take place in this stage. A review on the
progress of the process is done bringing to an end the second phase of the NPD process.
3. Process design and development: In this phase the process sequence, labor
characteristics, room characteristics, etc. are identified and developed.
4. Product and process validation: The validation and testing of the products made are
conducted in this phase along with the final designing of the product. The design made up
in this phase goes into the pre-production run in the fifth stage. The relay values, dropout
volts, withstand, life, ampere, etc. are tested and validated to the benchmark. A review is
conducted after this phase.
5. Feedback, assessment and corrective action: A preproduction run for 20,000 to 30,000
units are conducted. After this regular production is done. For the first three months the
R&D team along with production team would be constantly monitoring the production
process and the mistakes are taken care immediately without any delay.

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

The products developed in-house are:

1. S-22 Micro Switch


2. S-24 Toggle Switch
3. S-25 Dip Switch
4. S-65 Micro Switch
5. S-87 Telephone Keypad(white)
6. S-88 Telephone Keypad(black)
7. R-26 PCB mountable industry relay
8. R-29 General purpose relay
9. R-31 General purpose relay
10. R-33 Power relay
11. R-34 Flat packet relay
12. R-35 Heavy duty auto relay
13. AR-35 Automotive auto relay
14. R-36 Industrial relay

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15. R-38 10 Amp. Relay


16. R-40 Automotive miniature dual relay
17. R-49 General purpose relay
18. R-52 Reed Relay
19. R-53 PT Auto power relay
20. R-53 Auto power relay
21. R-56 Miniature dip relay
22. R-57 PCB Mountable Industrial relay
23. R-58 PCB Mountable Industrial relay
24. R-61 Miniature power relay
25. R-62 Power relay
26. R-63 Spaded power relay cradle
27. R-67 Mechanical Latch relay
28. R-68 PCB Mountable industrial relay
29. R-69-40A Power relay
30. R-71-80A Power relay
31. R-73 Automotive Power relay
32. R-74 Automotive Power relay
33. R-76 Automotive Power relay
34. R-78 Automotive relay
35. R-79 Automotive Power relay
36. R-80 Automotive Power relay
37. R-82 Solenoid
38. R-91 Fan Regulator
39. R-93 Automotive relay
40. 98-Collimator
41. Series 99-Carrier panel

The company after recognizing the importance of R&D has further invested in development
of new products. Recognition by the department of Science & Technology, Government of
India has been further extended up to March 2010. Apart from adding of a few customized

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products, the contribution from new products during the last few years has not been
satisfactory. The company incurred capital expenditure of Rs. 4.32 crores for new tools, new
equipments for existing product lines, R&D and new products in the year 2006-07.

General Services Department

Departmental Structure

General
Assistant
Executives
Staff
Manager
GM

The general services department is primarily concerned with the stocking and dispatching of
products systematically. Functions of this department include:

○ Storage of the finished products


○ Packing
○ Dispatch - Domestic and Exports
○ Sales service order processing and dispatch
○ Accounting of central excise duty

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Following a written order from the general service department and a printed copy of the sales
order, the packing and shipping section collects goods from the finished goods section, packs it
and weighs it. After this an executive of the general service department comes to the disposal
section and does the final labeling. All due forms like bill of entry, freight charges, excise duties,
postal charges are cleared by the department. Domestic dispatches are mainly done by courier
services like First Flight, Blue Dart, etc.

Production Planning Department

Departmental Structure

Asst.
Deputy
Planning
Skilled
General
CEAssistant
(Production
Assistant
Manager
(Production
Planning)
Planning)

This department is mainly concerned with the achievement of daily and monthly targets and
allocation of production losses. This wing also integrates production activities and works closely
with marketing department.

Objectives:

➢ Ensure assembly line availability


➢ Fabrication and plating production programming to meet the required delivery schedule

Procedure:

 Order controls issued by marketing department with required documents, if any, are
received through materials after authorisation

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


Electrogiri, Peenya and R&D respectively
 Work orders are issued by Planning for ERP products
 Based on draft programs received from marketing, monthly production program will be
finalized in consultation with Materials and Manufacturing departments
 P1,P2,P3 priorities are divided and production program copies are sent to Manufacturing
and Marketing departments
 A monthly report on production program is given to the M.D after finalization
 For parts received from outside (purchased parts) process orders are raised and sent thru
Production Planning department and Quality Assurance (QA) is done for furthur
processing in Fabrication/ Plating shop. Production Planning department will arrange
with the concerned department for furthur processing of parts according to urgency
 A list of priorities is given to plating shop daily for guidance

Stores

A subsection of the Production Planning department, the store, as the name suggests, is the
place where the materials are stored. Materials purchased when approved by QA is sent to
the relevant stores for storage

Objectives:

➢ To reduce inventory
➢ To reduce material cost
➢ To reduce production hold up

The store could be divided into three namely:

1. Raw Materials store: Stores all heavy metals and rods, most necessary for fabrication and
plating. It is in proximity to the fabrication and plating shop. Whenever materials are
issued they are recorded in manual register as well as in the computer. Each lot of

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material contains the accepted card tag. Whenever materials near their reorder quantity ,it
is immediately informed to the Production Planning which in turn informs the Purchase
department
The bin card, maintained by the store keeper follows a standardized code. Each cubicle is
marked with a distinct raw material code and description as well. For example, PB 223-
0020-2100 indicates bronze strip of 20 mm thickness and 21 mm width. Similarly all
materials are identified with a distinct eleven digit code.
2. Piece Parts store: Here, various vendor supplied parts as well as other components like
bobbin pins, etc. required for the assembly line are stored. It also stores silver, used in
plating shop. The components for each relay are stored in cubicles marked with distinct
code. It also contains a weighing machine for checking the gross weight of the materials
brought in before storing them. Through ERP system, they are able to know the required
issue quantity to be procured to the assembly line for scheduled production
3. Finished Products store: In this store that comprises of the final packaging section also,
all the finished goods are taken for the assembly line and store. This storage is much like
that of the piece parts store.
Here, the goods, before final packaging is weighed and the gross mass is weighed once
again after final packing over the packed bulk the product code, date, gross weight, net
weight and customer code are labeled. A separate section is kept aside for the outer
packages, cartoons, etc.

Process Engineering Department

Departmental Structure

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O/E/N India Ltd.

Electrical
General
Senior
Mechanical
Engineers
Operators
Engineering
Manager
Manager
Engineering

Working in O/E/N from 1995, the department helps others especially the assembly unit by
providing automated machines and technology integration.

Objectives of automation are:

• Reducing labor fatigue and time


• Prevention of scrap
• Improving upon quality

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


the manufacturing of the series 73 relay used by the customer. A trial run has been going on for
the past one year in order to check any problems regarding assembly of parts. The main
processes that are performed here are:

➢ Pin insertion
➢ Coil winding
➢ Soldering
➢ Resistance testing

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

➢ Starting time
➢ Damages found
➢ Stoppage time
➢ Total machine hours

After trial ruin is conducted for each day, operations are stopped and executives from QA and
Process engineering are called in along with the supervisors, to rectify damages. This may
require changes in equipment and process and this is taken care off.

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Enterprise Resource Planning (ERP)

All the departments are equipped with a computer with internet connectivity. Executives are
trained in using computers for report formation and e-mail communication. The company has a
website: www.oenindia.com, through which customers can view product catalogues and send
enquires. ERP is a subsection of the process engineering department. The ERP package used by
the company was offered by PeopleSoft in 2003. ERP is a system that integrates all functional
departments to work with common database and aids to plan effective utilization of resources.
ERP imparts traceability into the system. The various reasons that prompted the company for
ERP are:

 Previously used system was working on UNIX and FOXBASE, which was
technologically obsolete and unable to meet the IT requirements of the company
 Information integrity
 Reduce data redundancy
 Induce traceability and user accountability
 Adopt an common standard with state of the art technology
 Need for common data base

Modules implemented in ERP are:

 Personnel and Payroll Information System(PDIS)


 Store Inventory and Purchase System(SIPS)
 Maintenance Management System(MMS)
 Integrated Cost and Finance System(ICFS)
 Attendance Information System(AIS)

Even though the ERP has been implemented, it has been observed that many operations have
a parallel data entry mainly in the store and in the assembly store

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Quality Assurance Department (QA)

Departmental Structure

Executive
Technician
Executive
Inspector
Executive
Senior
Chief
GM QA (lab)
&
Manager
Engineer
Manufacturing
(Incoming
(FinalQA
Inspection)
Inspection)
QA

Quality products and services to the customers is the primary task but the ultimate aim is to offer
customers improving products and services. The QA department is involved in inspection of
parts, incoming materials and financial products and also in maintenance of quality records. QA
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lab facilities are used by other companies too underlining the quality and standards kept by the
company in maintaining its QA department. Major functions of this department are given below:

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


executive after receiving reports along with samples. Inspection of vendor supplied parts
is done according to specifications. Criterion for incoming inspection is that if five items
randomly taken are qualified then the entire lot is approved and if three items are rejected
the entire lot is rejected. Following processes are done in incoming inspection
➢ Inspection of raw material
➢ Inspection done during fabrication of parts, samples are tested on an interval of
one hour
➢ Inspection of in-house processed parts
➢ Inspection of packing boxes, mould tray
➢ Product specification testing
➢ Parts after plating and processing
➢ Customer supplied parts are tested

 Finished Product Inspection: This process is done to ensure and certify that the required
quality is maintained for finished products. Finished products are tested by checking
random samples offered by product inspectors by subjectual appropriate routine life tests
as per work instruction for ensuring product reliability and performance against relevant
specifications at regular intervals.

`QA Lab Tests:

1. Electrical Life
2. Mechanical Life
3. Continuous Energisation at Elevated temperatures
4. Rotational Life
5. Burn In
6. Solder ability
7. Robustness of Terminations
8. Impact-Bump
9. Vibrations

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10. Temperature Cycling


11. Climatic Cycling
12. Resistance to Soldering heat
13. Resistance to solvents
14. Damp Heat Test
15. Corrosive Atmosphere Test
16. Temperature Change of Resistance
17. Scaling(gross leak)
18. Scaling(immersion)
19. Scaling(MSLD)
20. Temperature(Dry heat)
21. Damp Heat(Cyclic)

Some of the equipments used for testing:

1) Dry Heat Chamber


2) Solder Bath
3) Multi Meter
4) Multi Vibrator
5) Dimmer Stats
6) Temperature Probe
7) Bump Test Monitor
8) Cold Chamber
9) High Volt Tester
10) Humidity Chamber
11) Damp Heat Cyclic Chamber
12) Environmental Chamber. –65 to +180o C
13)Altitude Chamber, Altitude up to 70,000 feet.
14) Vibration Machine, 5 to 5000 Hz Max 25 mm displacement.
15) Mass spectrometer Leak Detector, Helium detector,
16) Sensitivity 6 x 10-11 cc/sec
17) Humidity Chamber: 1) Programmable, -10 to +93o C. 98%RH
2) Steady State 40oC. 90-95% RH

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18) Salt Spray Chamber


19) X-Ray Plating Thickness Tester.
20) Bump Tester, Peak Acceleration 40+/- 4g, Drop height 25mm.

Visual defects to be checked for products coming into QA:

i. Damages like blur, etc.


ii. Tool marks
iii. Slug marks
iv. Tracks
v. Plating peel-off
vi. Discolouration of parts
vii. Finger prints(in case of copper plated products)
viii.Contact springs
ix. Scratches
x. Pit marks
xi. Dust
xii. Presence of oil/wax etc.
xiii.Presence of metallic and plastic dust

Inspection Modes:

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

Normal to tightened Inspection mode: When two out of five or more consecutive lots of a part
gets rejected in normal inspection, there is a switch over to tightened inspection.

Tightened to Normal Inspection mode: When five consecutive lots of a part get accepted in
tightened inspection mode, normal inspection mode is resorted back.

Calibration Section

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This section functions within the QA but performs a distinct function. In this section, chiefly,
tools and equipments used in assembly line and QA parts are checked or calibrated. Calibration
means testing the measuring equipment, their precision as well as their conformity. This helps to
check timely decadence and wear and tear of equipment used in product inspection. In the
calibration observation sheet which is tagged along with the tool, the observations are noted
down as “P” or “F” for pass or fail. A colour label is stuck on the equipment after calibration
signifying the following:

Green- O.K

Red- Out of Use

Yellow- Limited Use

In case of yellow, users are to use the equipment carefully and correction in measurement is
made manually. Equipment of various departments is sent for calibration and a copy of the
calibration observation sheet is sent to the concerned department along with the calibrated tool.

Materials Purchase Department

Departmental Structure

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Store
Assistant
Executive
Assistant
Senior
Office
assistant
GM
Manager
Manager
assistant

The materials purchase department is an important department in O/E/N. The hectic procedures
concerning the purchase of materials, choosing suppliers of materials, etc are decided by this
department. Functions and procedures of the department include

i. Approval of new suppliers: New sources are identified through various inputs like
publications, ads, introductory letters, references through internet, through
correspondence, etc. A request for quotation is sent to new sources along with
specifications, drawings, samples, supplier evaluation forms, etc, where ever applicable.
On receipt of quotations and other details, offers are evaluated. If required, furthur
correspondence/negotiations/request for samples is made and new suppliers for ordering
are identified. Trial order is placed with new suppliers based on terms and conditions.
Trial order item on receipt are forwarded to QA for evaluation and inspection report is
forwarded to suppliers. Based on acceptance of trial batches, new suppliers are included
in “Approved Suppliers List”

ii. Supplier Monitoring: For suppliers, supplier performance is monitored based on the
following for automotive parts:
➢ Quality 40%
➢ Delivery 10%
➢ Price 15%
➢ Premium freight incidence 10%
➢ Customer line description 10%
➢ Quality issues for customers 10%
➢ Documentation 5%

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

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➢ Quality 40%
➢ Delivery 25%
➢ Price 25%
➢ Responsiveness 10%

Performance rating is done during April and September every year for suppliers made during the
previous six months. Based on rating suppliers are classified into five grades:

Grade A: Rating>=90

Grade B: Rating>=80 and <90

Grade C: Rating>=70 and <80

Grade D: Rating>=60 and <70

Grade E: Rating<60

Suppliers belonging to group E are removed from approved suppliers list. Suppliers are
reevaluated every three years based on their performance rating for previous three years. Those
who have not supplied for three consecutive years are discarded from approval list. Suppliers
removed are prequalified per procedure for approval of new suppliers.

In case of rejection of supplied items suppliers are informed along with inspection
report/Corrective and Preventive Action Report (CPAR) and asked to submit counter measures
and ensure implementation of measures depending on severity of problem. Suppliers are
instructed to present the counter measures for major problems in a meeting at O/E/N. Even after
counter measures if suppliers are rejected no furthur orders would be placed.

i. Purchase of Materials: For raw materials and precious metal parts, suppliers are
instructed to send Material Test Certificate along with supplies which are forwarded to
QA on receipt.
ii. Receipt: Material s coming to receiving stores are moved to “for checking”
iii. Storage areas are:
a. Piece parts store

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b. Raw materials store


c. Consumable tools store
d. Tools and mould store
e. Air conditioned store
f. Precious material store
g. Metal scrap yard and waste material storage

Marketing Department

Departmental Structure

Asst
Field
Executives
Senior
Staff
Field
GM
GM(Customer
Manager
(MRKTG)
Engineers
General
Care)
Manager

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O/E/N India Ltd.

Marketing office of O/E/N India Ltd is situated at Vytilla, Cochin. Usually orders are taken up to
the 25th of every month and orders coming after the 25 th are scheduled for the next month. The
minimum lead time for orders varies from six to eight weeks. There are seven regional offices
for O/E/N, they are:

Regional Sales Offices:

• New Delhi
O/E/N India Limited
76, FIRST FLOOR (REAR SIDE)
SANT NAGAR, NEAR NEHRU PLACE
NEW DELHI - 110 065

• Bangaloru
O/E/N India Limited
KE-204 & 205, SUNRISE CHAMBERS
ULSOOR ROAD
BANGALORU - 560 042

• Chennai
O/E/N India Limited
E-3, SANGATH APARTMENTS,
M.G.R NAGAR
VELACHERRY
CHENNAI - 600 042

• Pune
O/E/N India Limited
A1 / 9, KUSUM SOCIETY

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O/E/N India Ltd.

HAREKRISHNA MANDIR ROAD


MODEL COLONY
PUNE - 411 016

• Hyderabad
O/E/N India Limited
2nd FLOOR, PLOT NO. 85,
ROAD NO.3
TRIMURTHY HOUSING SOCIETY
MAHENDRA HILLS
SECUNDERABAD - 500 026

Market segmentation of O/E/N

✔ Industrial instrumentation/Controls-30%
✔ Defense-6%
✔ Consumer Electronics-35%
✔ Telecom-4%
✔ Automotive-25%

Authorised Stockists

• Bangaloru:
○ Amar Radio Corporation
11/1 Thiglar Periyanna Lane
Silver Jubilee Park Road, Bangaloru – 560 002
• Mumbai:
○ Brisk Electro Sales Pvt. Ltd.,

394-A, Lamington Chambers

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

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• Secunderabad:
○ Cosmos Electronics,

Room No.1, 2nd Floor,

Srinath Commercial Complex,

S.D. Road, Secunderabad –500 003.

• Calcutta:
○ Electronics Components & Systems,

32, Ezra Street, 418 Todi Corner,

Calcutta –700 001.

• New Delhi:
○ Indian Technological Products Pvt.Ltd.,

15 Dsidc, Sheme 1, Industrial Complex,

New Okhla Phase 11, New Delhi – 110 020.

○ Kudamm Corporation

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

New Delhi - 110 019

• Chennai:
○ Seshasayee Brothers Pvt. Ltd.,

5/1, Krishnamma Lane,

Nungambakkam, Chennai – 600 034

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O/E/N India Ltd.

Dealers:

➢ New Delhi
➢ Chennai
➢ Cochin
➢ Coimbatore
➢ Hyderabad
➢ Trichy
➢ Pune
➢ Kolkata
➢ Bangaloru
➢ Jaipur
➢ Lucknow
➢ Mangalore
➢ Vishakhapatnam
➢ Jamshedpur

Functions of the marketing department are:

 Sales
○ Direct selling
○ Through dealers
 Sales promotion
○ Participation in industrial exhibitions
○ Sending catalogues, brochures, etc to companies directly
 Ads
○ Industrial directories
○ Technical magazines
○ Websites
 Technical support
 Agency work: O/E/N undertakes agency work for the following companies
○ Bourns Inc. ,USA

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○ Otto Controls, USA


○ Diptronics Inc, Taiwan
○ Xiamen Hongfa, China
 Exports
 Customer services
 Payment collection
 Market planning: Target set for every year is 120% of sales made in the previous year.
The price of the product is based on creditability of the purchasing company as much as
quantity ordered. The sales forecast is based on past trends, seasonal expectations, as well
as projected sales figure of clients, in tandem with data received from regional offices.
This forecast is then passed to production planning department. Colour code used to
make forecasts based on which product line expansion or capacity planning is utilized.
Colour code is as follows:
 Dark blue: production in trial
 Red: new product
 Light green: imported
 Lavender: outsourced production
 Brown: Peenya production
 Black: established and mature products developed at Mulunthuruthy
 Ensuring Credit Worthiness of Customers: Marketing determines credit worthiness of
customers based on past payment trends and sales turnover of customers. Usually it
ranges from 15-30 days. In case of prestigious clients, it is extended to 60-90 days. In
case of new clients there are different phases of credit collection. Usually an advance of
about 15% of actual price is demanded.
 Market promotion/enquiry handling
➢ Advertising
➢ Cataloguing
➢ Mailers
➢ Personal visits
➢ Customer relatives
➢ Intelligence gathering
➢ Receipt and review of enquiry

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➢ Sending quotations
 Order processing
➢ Receipt and review of order
➢ Order control processing
➢ Delivery note generation
➢ Dispatch of materials
 Payment collection
➢ Credit Payment follow up and cash collection
➢ Receiving and recording payments
 After sales services
➢ Reviewing customer complaints
➢ Reviewing lack products in case of rectification
➢ Analysis of customer complaint
➢ Performa Chelan generation
 Customer satisfaction evaluation
➢ Questionnaire reviews
➢ Sending questionnaires to customers
➢ Collecting completed questionnaires
➢ Data compilation
➢ Analysis and interpretation
➢ Presentation of reports and action plans
➢ Reports to field staff on specific customer responses
 After sales services

Manufacturing Department

Departmental Structure

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O/E/N India Ltd.

Executives
Asst
Deputy
Senior
Staff
Asst
Manager
Asst
Manager(switches)
Manager(non
Manager
(auto)
auto)

Manufacturing is the main department in any organization and the major impetus of any
company also goes into this function of manufacturing. O/E/N has a manufacturing space of
18,000 m2 in three locations; Mulunthurthy, Vytilla in Kerala and Peenya in Karnataka. The
manufacturing department consists of

➢ Tool room: O/E/N has a well equipped modern tool room with all facilities. The specialty
is in the design and manufacture of tools and moulds for electromechanical components.
Tool room is managed by a team of expert engineers in tool design and in manufacturing
a group of well trained tool room makers and mechanics, a well equipped press and
moulding shop attached to the tool room provide facility for providing the tool and
moulds. Tool room works in four wings:
○ Tool design
○ Machining
○ Tool assembly
○ Maintenance

The Tool Room is equipped with CAD facility and a machine shop having the following
special machines in addition to conventional machine tools.
○ Charmilles Wire EDM
○ Charmilles Spark EDM
○ Wickman CNC Profile Grinder
○ WMW Optical Profile Grinder

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○ WMW Jig Boring Machine


○ Mikron Milling Machine
The Tool room can accept orders for design and manufacture of the following types of
tools and moulds, for fabrication of components to customers’ design.
• Press Tools – Progressive, compound and Single operation tools
• Injection Moulds
• Compression moulds
• Transfer moulds
• Assembly Tools
• Jigs & Fixtures
➢ Fabrication Room: The main assembly is supported by comprehensive fabrication
facilities with power press for pressed piece parts, a plating plates that handles plating of
conventional as well as precious metals. This has three divisions
○ Actual fabrication
○ Electro plating
○ Moulding shops
➢ Assembly Room: This department is mainly related to the manufacturing and assembly of
relays, switches and potentiometers. This department works 24 hours in a day as three
shifts. Their main objective is to reduce process scrap, improve group index and achieve
programmed production.
Relays are differentiated based on materials used, temperature and pressure withstanding
ability, electrical parameters, type of moulding, etc. List of operations in manufacturing
relays are:
 Coil terminal insertion and bending
 Coil winding
 Coil timing and cleaning
 Coil terminal straightening
 Core head correction
 Coil, core yoke assembly, taking
 Non/NC contact terminal signaling and cleaning
 Moving spring bending
 Moving terminal –R/C

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O/E/N India Ltd.

 Armature correction
 Armature/retainer/base plate assembly
 Cover printing
 Calibration and cover insertion
 Base plate and cover stacking
 Scaling, hole checking/filling and terminal cleaning
 Terminal cutting
 Terminal timing and cleaning

Switches: O/E/N manufactured switches are mainly used by the Ministry of Defense. The
series 13 switches are exclusively created for a company in the U.K. Switches are
differentiated based on materials used, temperature and pressure withstanding ability,
electrical parameters, type of moulding, etc. The main processes in switch
manufacturing are:
 Rotor blade trimming
 Rotor blade splitting
 Staking
 Eyeleting
 Shaft and star wheel assembly stacking
 ‘C’ washer cylindering
 Ball and spring assembly
 Final assembly
 Mounting hardware assembly

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


manufacturing of these are less compared to other products. This product is used in
electronic circuits for getting desired voltage drops. All the parts of the potentiometers
are imported

Procedures inside Assembly Room:


a) Information and scheduling system: This is to provide information on the
functioning and daily targets at the assembly room. There are mainly two types of

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O/E/N India Ltd.

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

Diagrammatic representation of manually written board:


Daily Cumulative Cumulative Process
Programmed Achieved
Target Target Achieved Scrap
Quantity Quantity
Quantity Quantity Quantity Percentage

Diagrammatic representation of digital information board:


Product Name
Monthly Target
Production to date
Today’s Target
Production up to last hour
Last hour production

b) Daily meeting at work place: A meeting between supervisor and the assembly
workers happens before each shift to discuss on previous day’s production. The
discussion may go up to ten minutes.

c) Integration with production planning department

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O/E/N India Ltd.

d) Operation control procedures

Auxiliary Supportive Procedures Enabling Product Efficiency

1. Check Sheet

2. Daily maintenance check list


➢ Neatness of work place
➢ Machine condition
➢ Felt condition
➢ Tool status
➢ Cavity cleanliness
➢ Paper clamping of tools
➢ Air pressure
➢ Calibration status of measuring instruments
➢ Proper safe guards
➢ Equipment checking

1. Inter process transfer card

2. Process control measures

Contract Manufacturing
O/E/N undertakes Contract Manufacture of branded electronic and electromechanical
components to customer design and specifications.

○ Value addition in the process.


○ Expertise in made to order products.
○ In built capability to make supply chain short.
○ Low cost, trained & experienced labour force.

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O/E/N India Ltd.

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


machines, air screw drivers, air presses, hydraulic presses, ovens, soldering stations, potting
stations, calibration stations etc...

The assembly shops supported by a fully fledged, well equipped Fabrication shop - High
speed presses, multi slide machines, automats, moulding machines etc. constitute a part of the
big list.

A well equipped Tool Room with special purpose machine to manufacture & maintain all
tools, moulds, jigs and fixtures required by the press and plastic shop.

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O/E/N India Ltd.

Human Resources Department


Departmental Structure

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O/E/N India Ltd.

Watchmen
House
Drivers
Workers
Welfare
HRD
Security
First
Canteen
Office
Keeping
AGM
Aid
Manager
Contractor
officer

Human resources are the asset of any organization. Therefore managing the human resources are
the most important functions of any organization. So it is essential for the organization to fix a
separate department for the management of human resources. O/E/N has an efficient HR
department, which is headed by chief general manager (ER). This department is mainly
responsible for personal functions of the company for resulting in timely action for maintaining
smooth industrial relations leading to employee’s morale and productivity. The personal
department renders all personal and establishment services to all persons.

Objectives of the HR department include:

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

 To provide leadership for management of industrial relations and employees


welfare function of the company.

 To provide basics for corporate strategies and polices for maintenance of


industrial peace and for work

 For evolving system of prompt attention and redressal of employees grievance


and the prevention of the same.

 Administration the different committees for employees participation

 Evolve and update practices for checking incoming and outgoing of materials and
persons.
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O/E/N India Ltd.

 Implementing the standing orders pertaining in the company

Functions of the HR department could be broadly classified into:

➢ Personnel administration
➢ Employee relations and benefits

Personnel Administration contains:

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


recruitment of the right person in the right place at the right time. It is the first
time process by which employment is provided to the organization by means
of adequate manpower resources. It is the positive process of searching for the
prospective employees and circulating them to apply for the jobs. The sources
of recruitment can be classified as follows:
• Internal sources: Internal sources include personal already on the
payroll of an organization i.e. its present employees. Another method
in internal sources is by direct recruitment of employees.

• External sources: The term external sources indicate the sources


outside the enterprise. The main sources are by external agencies and
Employment Exchanges. The outside sources include:

✔ New entrants to the labour force

✔ The unemployed with wide range of skills

✔ Retired experienced person

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


letter, etc. Based on interview rank candidates, shortlist and call for final
interview, check references, coordinate with departments and arrange date and
time of interviews/ tests

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O/E/N India Ltd.

 Appointment

 Attendance and leave marking

 Pay roll management

 Increments/Promotions/Transfers

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


executive, executive, skilled and unskilled, clerical and administrative staff.
Training is also provided to employees when the need arises from internal and
external sources, i.e. the trainers may be from inside or outside the company.
The basic policy of the company states that at least one man-
day/employee/year should be dedicated to training.

 Women Welfare Cell

 Trade Unions and Labour Relations

Employee Relations and Benefits contain:

 Employee health and safety


 Health and accident insurance
 First aid
 Collective bargaining
 Negotiations
 Union Relations
 Employee Involvement
 Canteen
 Employee transportation
 Benefits Administration
○ Spouse Allowance

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O/E/N India Ltd.

○ 10/20/35 service year completion gifts


○ Free coverage in health insurance for executives
○ Double increments/Promotion based on performances
○ Spouse allowances
○ Children education
○ Group health and personal accident insurance coverage
○ O/E/N Executives Superannuation Fund
○ O/E/N Employees Cooperative Credit Society
 Medical Reimbursements
 Merit rating
 Value Addition
 Change Management
 Employee Education/Awareness
 Project Work/Studies
 Security
 Joint Consultative Committees
○ Canteen Committee
○ Safety Committee
○ House Loan Committee
○ Women Complaint Committee

Employee Strength of O/E/N India Ltd.

Mulunthurthy Vytilla Peenya


Executives 126 19 9
Non-executives 409 17 176
Worker/Trainees 5 13
Apprentices 409 26
Total 949 36 224
Grand Total 1209

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O/E/N India Ltd.

Daily Shifts at O/E/N

 8.30 A.M -5 P.M General shift


 7 A.M-3.30 P.M A shift
 6 A.M- 2 P.M A1 shift
 2 P.M-10 P.M B1 shift
 3.30 P.M – 12 P.M B shift
 12 P.M-7 A.M C shift

SWOT Analysis

Strengths

 Brand Name
 Market leader in domestic market
 Cheap labour compared to global standards
 Good employee-employer relation
 Job security to employees
 Quality products
 Ideal location
 Highly efficient management
 Extensive data and knowledge on Indian market
 Very low overall attrition rates

Weakness

 Lack of innovative products


 Highly functional departmental organization structure with limited horizontal integration

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O/E/N India Ltd.

 Lack of training
 Outdated technology
 Overdependence on import sources for raw materials
 No lateral entry to induct skilled and specialists to top slots; only filled by promotions

Opportunities

 O/E/N has potential to attract any major global player for a takeover or collaboration. The
synergy will help O/E/N to get wider global market reach in addition to changing market
dynamics
 The next generation relays will be using solid state relay technology. O/E/N can
gradually enter into this market
 O/E/N can increase scalability and production efficiency by introducing partial
automation in key production lines
 Experience and expertise in core competency
 Website renovation
 Entering into newer and related industries
 Employing more youth for a steady organisational change

Threats

 Change in relay technology from electromechanical to solid state relays


 Losing the leadership position due to lack of innovation and new products
 Rapid change and obsolesce of technology
 Drain in market share in sensitive segments with entry of cheap Chinese brands

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O/E/N India Ltd.

 Stiff competition from imported relays available in grey market


 Steep rise in raw material costs leading to a vertical cost increase
 Attrition among new comers
 Focus on value addition

CONCLUSION

This report gives a detailed study of the organizational system and functioning of O/E/N India
Ltd. The report covers description about various departments of the company and their functions.
The materials purchase department deals with the storage of materials rights from the raw
materials to the finished products and invites quotation and based on the vendor ratings; get the
required quantity and quality of guaranteed materials. The production department is directly
responsible for achieving the target production. Engineering department deals with the
maintenance and calibration of equipments used in the production process. The finance
department deals with the payments and receipts where as the HR department maintains an
effective relationship between management and employees. The QA department ensures quality
in products and processes while the General Service and Process Engineering departments assist
the smooth running of the organization.

The labour welfare measures and job satisfaction among the employees are very good. Above all
O/E/N is managed by an efficient Board of Directors, which plans, organizes and controls all
activities in close co-operation with the other officials of the concern.

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O/E/N India Ltd.

O/E/N continues to occupy an important place among the electronics manufacturing companies
in the country. With newer technology O/E/N can reduce cost of production and will be able to
regain its previous market position.

O/E/N has proved itself as a successful undertaking as its employees are performing effectively
and efficiently for the best of the organization. This training provided the trainee with very useful
first hand information about a manufacturing firm.

APPENDIX

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

Schedules Year ended 31.03.2007 Year ended 31.03.2006

INCOME

Sales N 556536681 467853015

Other Income Or 20461539 21256776

Stock Differential P 2950475 (3964194)

TOTAL 579948695 485145597

EXPENDITURE

Materials consumed Q 277094671 234212287

Other expenditure R 216929779 195649790

Less: Capital Jobs


13550153 12391930
Allocated

Purchase of trading
17695097 10710763
goods

TOTAL 498169394 428180910

Profit before 81779301 569644687


Depreciation and

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O/E/N India Ltd.

Taxation

Less: Depreciation 30600422 28258903

Profit before
51178879 28705784
Depreciation

Less: Provision for


taxation

Current tax 16600000 9000000

Deferred tax 32500000 1905000

Fringe Benefit tax 410000 1380000

Prior years 49609 8664222

Net Profit for the year 30869270 25085006

Add: Surplus carried


2785203 2514629
forward from last year

TOTAL 33654473 27599635

APPROPRIATION:

Proposed dividend 5099260 5099260

Corporate tax 866619 715172

Transfer to general
24000000 19000000
revenue

Balance carried to
3688594 2785203
Balance Sheet

Comparative Balance Sheets as on 31.03.2007 & 31.03.2006

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O/E/N India Ltd.

As per
I. Sources of Funds 31.3.2007 31.3.2006
Schedule

1. Shareholders Fund

a) Capital A 50992600 50992600

b)Reserves and
B 20934591 184440200
surplus

260336191 235432800

2. Loans and funds

a)Secured loans C 99846269 100328951

b)Unsecured
D 31952319 3847113
loans

131798588 138800064

3..Defered tax liability 21419200 18169200

Total 413553979 392402064

II. Application of funds

1. Fixed assets E

(a) Gross block 494856885 452543313

(b) Less deprecation 256960082 226164886

(c) Net block 237896803 225778427

(d) Capital work in


F 4181285 13789194
progress

242078088 23956721

1. Investments G 1463060 1263060

2. Current assets, loans


& advances

(a)Inventories H 121675555 102520779

(b)Sundry debtors I 124212708 98571966

(c)Cash & bank


J 6709939 5274666
balances

(d)Other current
K 4698263 5989881
assets

(e)Loans & advances L 20401181 34823320

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O/E/N India Ltd.

BIBLOGRAPHY

1. Kotler Philip. Marketing Management Millennium edition


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

2. Panneerselvam .R Production and Operations Management


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

3. Dessler Gary Human Resource Management 7th edition


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

4. www.oenindia.com

5. www.elcina.org

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