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A REPORT ON ORGANISATION STUDY AT

KIRLOSKAR ELECTRICALS LIMITED

Submitted in partial fulfillment for the requirements for the award in


MASTER OF BUSINESS ADMINISTRATION
BANGALORE UNIVERSITY

BY
GEETHA.B
(09P6CMA017)
Under the Guidance of
Prof. B H A G Y A R A T H N A.R

COMMUNITY INSTITUTE OF MANAGEMENT STUDIES

AFFILIATED TO BANGALORE UNIVERSITY - APPROVED BY AICTE NEW DELHI

RECOGNISED BY GOVERNMENT OF KARNATAKA


STUDENT DECLARATION

I hereby declare that the “Internship report on Organisation Study” at


KIRLOSKAR ELECTRIC COMPANY LTD, Govenhalli is a record of independent
work carried out by me, towards partial fulfilment of the requirements for MBA
course of Bangalore University at Community Institute of Management Studies. This
has not been submitted in part or full towards any other degree or Diploma of any
other Institute or University.

PLACE: BANGALORE GEETHA.B


DATE: (09P6CMA017)

ACKNOWLEDGEMENT
Words are indeed inadequate to convey my deep sense of gratitude to everybody.
This project is an outcome of all the efforts and co-ordination of various people.

First and foremost, I express my sincere and heartful thanks to DR. B.S. SURESH
BABU , MBA Phd Honarable Director Department of MBA for the giving me an
opportunity to do this project.

I am also grateful to the esteemed organisation KIRLOSKAR ELECTRIC


COMPANY LTD co-operation during my project. An all the faculty who provided
full support in completing this project successfully.

I would be afflicting myself if I do not profess my sincere appreciation to my dearest


parents, sister and friends who helped me in every step.

PLACE: BANGALORE GEETHA.B


DATE: (09P6CMA017)

CONTENTS
CHAPTER TITLE OF THE PAGE
CHAPTER NUMBER
NUMBER
1 INTRODUCTION 1-10


2 •
INDUSTRY PROFILE
COMPANY PROFILE
11-13

• PRODUCT PROFILE 14-32


• VISION/MISSION
33-38

39-40

3 KEY FUNCTIONAL
DEPARTMENTS
41
• HUMAN RESOURCE
DEPARTMENT
• ENGINEERING 42-50
DEPARTMENT
• PRODUCTION
DEPARTMENT
51-52
• MAINTENANCE &
QUALITY ASSURANCE
DEPARTMENT
• MARKETING 53-63
DEPARTMENT
• FINANCE DEPARTMENT

64-69

70-76

77-81

4 SWOT ANALYSIS 82-83


5 FINDINGS 84

6 SUGGESTIONS 85

7 CONCLUSION 86-87

BIBLIOGRAPHY 88

ANNEXURE
INDUSTRIAL ANALYSIS:

Revolution or analysis of electric industries-


Like every other industrial sector in India, the Indian Electrical/Electronics Industry too is
slowly emerging from out of its "protective cover". For far too long has Indian Industry
remained shackled and consequently inward looking. Over the past fifty years there was no
exposure to global players and competition, with the result that the Industry grew up in a
sheltered environment, dependent on the Government for everything, from licenses to
protection to tariffs. Each one of these interventions was aimed at securing protection for
oneself and ensuring growth of one’s own organization at the cost of industry and the nation at
large. Lack of global competition encouraged a "cost plus" approach, where every conceivable
cost increase was passed on to the customer.

There was thus no motivation to reduce cost.

With deli censing, decontrol and deregulation, Indian Industry has suddenly been exposed to
global competition. Since last decade, India has witnessed what global players have achieved
and what they are capable of achieving. We are becoming aware of competition on our turf. In
this scenario, every company complains of increased competition, lower order books and
shrinking margins. The Indian Electrical/Electronics Industry is of course further besieged by
the fact that there is a dearth of business on account of lack of investment in the power
infrastructure. Many organizations in this industry are looking overseas to develop the export
markets owing to reduced demand at home.

At the outset, it must be stated that the reduced domestic demand is at best a temporary
phenomenon. The power sector in India is bound to grow and this will undoubtedly boost
demand from the Utilities, quite apart from the industrial demand which will continue to grow
with increased industrial output. The poor financial health of the SEBs is however a damper
that cannot be wished away in the short term. This will continue to plague corporate in the
Electrical Industry, until the SEB restructuring and unbundling brings a turnaround in the
medium term.

INTRODUCTION TO SECTOR

The Installed Generating Capacity in the country which was only 1,358 MW at the time of
Independence has reached a level of 1,27,673 MW, comprising 83,982 MW thermal, 33,600
MW hydro, 3,900 MW nuclear and 6191 MW from wind and other renewable energy sources.
Products produced by the KIRLOSKER Electric Co.,
3 core submersible flat cables, 3 Point Locking Mechanism, AC boxes, ac contactor, Ac Drives, Ac
Motors, AC plug & Sockets, ac-dc switching power supply, ac panels ,Actuators ,Adapters,
agricultural pump sets, air break switches, aluminum chokes, alternators , Aluminum Compact
Chokes, aluminum crepe paper, Amplifiers , Analog & Digital Temperature Controllers, anchor
switches & accessories.
COMPETITORS:

ABB Havel s India HBL Power


EMCO NUMERIC POWER HONDA SIEL
Crompton Greave
Techno Electric
BHARATH BIJLEE
EASUN REYRL
ORGANISATION STUDY

GROWTH RATE OF INDUSTRY:

The growth that the company has witnessed over the past five years has been sustained in a strong
and steady way. After completing the restructuring activities in 2004, the company has grown to its
highest ever turnover of Rs. 728 Crores with a profit after tax of Rs. 23.7 Crores in 2007-2008. These
correspond to a growth rate of 23% in turnover and a 32% in profit.

CUSTOMERS OF THE INDUSTRY:

Pump applications, Fan Applications, Compressor Applications, Crusher Applications, Ball Mill,
Blower Application, Prime mover for Conveyers, Crane Applications, Fibrizer Applications in Sugar
Mills, Cement mills, Steel Rerolling Mills, Telecom, Service Industry (Banks, Ins, Fin), Retail
Chains, Hospitality, Health Care, Govt. Departments, Railways Utilities, Defense, Para Military,
Rubber, Plastic, Textile, Paper, Printing, Agriculture, Commercial establishment utilities, Petro
Chemicals, Fertilizer, Nuclear, Automobile, Marine, Defense, Power Co Generation Projects, Wind
Energy Infrastructure, IT, Engineering Companies, Contractors, Dealers, Project Houses, Test Rig,
Institutions: Banks, LIC, CPWD, MES, Ports, Power, Airports, Builders, GOVT Agencies,
Industries, Chemical, Pharma, Crane & Elevator.

STAKEHOLDERS OF THE INDUSTRY:

The Audit Committee consists of five independent Non-Executive Directors.


The terms of reference to the Audit Committee cover the areas mentioned under Clause 49 of the
Listing Agreement and Section 292A of the Companies Act 1956, besides some other functions as
referred to it by the Board of Directors.

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Name Of Director Category


Mr. S.N.Agarwal Chairman
Mr. A.S. Lakshmanan Member
Mr. Anil Kumar Bhandari Member
Mr. Sarosh J Ghandy Member
Mr. V.P.Mahendra Member

SHAREHOLDERS

The Shareholders/Investors Grievances Committee consisted of three Directors. The terms of


reference of Shareholders/Investors Grievances Committee include, interalia, to look into the
shareholders and investors complaints regarding transfer of shares, non receipt of balance sheet,
non receipt of dividends etc and to redress the same.
Name Of Director Category
Mr. Anil Kumar Bhandari Chairman
Mr. Vijay R Kirloskar Member
Mr. P.S. Malik Member

Remuneration Committee

The Remuneration Committee consists of following Directors:


Name Of Director Category
Mr. S.N.Agarwal Chairman
Mr. A.S. Lakshmanan Member
Mr. Anil Kumar Bhandari Member
Mr. Sarosh J Ghandy Member
Ms. Meena Kirloskar Member
KEY SUCCESS FACTOR OF BUSINESS:

In the first half of this fiscal year, the manufacturing sector in India has again shown a Healthy
performance» Nearly 65 per cent of Manufacturing sectors continue to show Substantial growth, says
the ASCON survey Carried out by the Associations Council of the Confederation of Indian Industry
(C1I). Distribution and Power Transformers have both Shown a high growth among the Capital
Goods Industry. The transformer industry in India is well established with capability to provide state

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Of- the-art equipments. In this issue of Watts Up, we focus on the Growth of the transformer
industry with the technical articles covering AVR's and testing related to transformers. The spotlight
section takes you to the transformer manufacturing division in Mysore. We have covered the
happenings with our vendor's meet and finally, we conclude this issue with a round up of the
Kirloskar Electric family.

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INTRODUCTION

The only constant that we know is that, this world is changing. Change had come to Indian
industry like a sweeping tornardo transforming the industrial environment and giving indegeneous
industry some very tough standards to measure up to. In this testing situation, only the fittest have
the wherewithal to survive. Only the best will thrive.

That Kirloskar Electric has not only survived but has grown in confidence, capabilities, range
and were scope is a testimony to the inherent strength of its foundation as a company that once set
out to revolutionized India’s agricultural sector with value engineering.

The difference is in the collective outlook of people trained to look upon every challenge as a
platform from which to take giant leaps in quality and performance. And in so doing, to build on core
capabilities of power engineering and upgrade them to world standards.

The founder of Kirloskar group is late “LAKSHMAN RAO KASHINATH


KIRLOSKAR”. He was born in 1886 in a village called GULAHASAR in Belgaum district. He had
preference for mechanical from his school days and therefore came to Mumbai and completed a
course of technical draftsman ship at JJ school of arts. He started business of selling and repairing the
bicycles.

Visionary founder Laxman Rao Kirloskar created the first Iron plough for the Indian
farmer. His involvement with agriculture led him to make the first pump then the prime movers for
the pumps. Since then KEC corporate goal has been to look into the future and engineer products that
time would eventually demand.

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FOUNDERS

Laxmanrao Kashinath Kirloskar was a successful industrialist, but his chief merit lay in
the trail he blazed, for the principle in life he depended upon were his vision and a spirit of
pioneering.

LAXMAN RAO K KIRLOSKAR,


Founder, Kirloskar Group of Companies

Ravindra L. Kirloskar was the youngest son of Laxmanrao and Radhabhai Kirloskar, who
later headed KEC operations.

Having a degree in Electrical Engineering from the Worcester Polytechnic Institute, U.S.A. he began
his professional career in Kirloskar Brothers. In 1942 he designed and built India's first Electric
motor at Kirloskarwadi with his colleague N.K.Joshi. He guided us to the highest level of quality...

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"Quality must go beyond standard tests and procedures. It must be equated with self respect and
personal pride."

Ravi L Kirloskar, second – generation entrepreneur, son of the visionary, built a bank of
prime technological skills and capabilities. And a state of art facility that has since then continuously
reinvented itself to meet the changing demands of a changing market – just that one step ahead of
time.

With long years of innovative application behind it, Kirloskar Electric finds itself completely
capable of delivering a range of custom engineered products that meet and exceed global standards
at very competitive prices.
Moving smoothly from agricultural sector to industry, to transport, to defense, to power
generation, Kirloskar Electric products have had more than a significant contribution to make to
India’s rapidly evolving economy.
RAVINDRA L. KIRLOSKAR ,
Founder, Kirloskar Group of Companies

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INDUSRTY PROFILE

Heavy industry in India comprises of heavy engineering industry, machine tool industry,
industrial machinery and auto industry. These industries provide goods and services for almost all
sectors of the economy, including power, rail and road transport. The machine building industry
caters to the requirements of equipment for basic industries such as steel, non-ferrous metals,
fertilisers, refineries, petrochemicals, shipping, paper, cement, sugar etc.

HEAVY ELECTRICAL INDUSTRY

Heavy electrical industry covers power generation, transmission and distribution and
utilization equipments. These include turbo generators, boilers, various types of turbines,
transformers, switchgears and other allied items. Majority of the products are manufactured by heavy
electrical industry in the country. Some major areas where these are used are the multi core projects
for power generation including nuclear power stations, petrochemical complexes, chemical plants,
integrated steel plants, nonferrous metal units, etc. India is the only developing country besides china
which produces a full range of electric power generation and transmission equipment. The industry
has been upgrading the existing technology and is now capable of taking up turnkey contracts also
for exports markets.

Foreign collaborations are allowed with 100 percent FDI. The country is planning to add
150000 MW power generation’s capacities in the next ten years this will generate substantial demand
for heavy electrical equipments. The heavy electrical industry is capable of manufacturing
transmission and distribution equipment up to 400 KV AC and high voltage DC. The industries has
taken up the work of up gradation and transmission to the next higher voltage system of 765 KV
facilities to and have upgraded their manufacturing facilities to supply 765 KV class transformers,
reactors, CTS, CVT, bushing, insulators, etc.

The investment in R & D by the electrical industry is the largest in the corporate sector in India.
Large electrical equipment used in steel plants, petrochemicals complexes and other such heavy
industries is also being manufactured in the country.

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The domestic heavy electrical equipment manufacturers are making use of the developments of the
global market with respect to product designs and upgrading of manufacturing and testing facilities.
The heavy electrical industry has established its reference in the global arena also. These encompass
thermal, hydro and gas based power plants, substation projects, and rehabilitation. Projects, besides a
wide variety of products like transformers, photo voltaic equipments, insulators, switchgears, motors,
etc

GENERATOR SETS

AC generators manufactured in India are on par with international AC Generators and consistently
deliver high quality power with high performance. Domestic manufactures are capable of
manufacturing AC generator right from 0.5 KVA to 25000 KVA and above with specified voltage
rating.

TRANSFORMERS

The industry has the capacity of manufacture whole range of power and distribution transformers
including the REC rating of 25, 53, and 100 KVA and also the extra high voltage range of 400 KV,
600 KVA.

SWITCHGEAR AND CONTROL GEAR

In India, the entire range of circuit breakers from bulk oil, minimum oil, air blast, vacuum to SF6 are
manufactured to standard specification for the benefit of customers, the ranges of products produced
cover the entire voltage range for 240V to 800KV, switchgear and control gear, MCBs, air circuit
breakers, switches, rewire able fuses and HRC fuses with their respective fuse bases, holders and
starters. The industry is competitive in the field of design and engineering as the skill sets available
in the country are relatively less expensive.

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HISTORY OF KIRLOSKER ELECTRIC COMPANY:

1888- Engineering Brother Enterprise was established by Mr Lakshman Rao & Mr Kashinath
Kirlosker.
1901- India’s first Mechanical Fodder Cutter Machine made.
1904- First Iron ploughs was Invented
1924- Export of Ploughs to Britain begins.
1940- India’s First Vertical Diesel Engine Manufactured.
1942- First AC Induction Motor made in India.
1946- Kirlosker Electric & Kirlosker Oil Engines established.
1949- India’s First 5HP AV1 Engine Manufactured.
1953- India’s First Transformers Manufactured.
1958- First Alternator in India was invented, Kirlosker Pneumatic Company Established.
1964- First Electronic DC Motor Made in India.
1970- Mr. Ravi Kirlosker Appointed as Managing Director.
1973- First Overseas Established In Malaysia.
1984- JV Established for Specialization in Pumps.
1988- Completed 100 years, a Centenary Year.
1991- Established in Singapore.
1992- Kirlosker Ferrous Established.
1993- ISO 9001 Certification.
1994- Mr. Vijay Kirlosker was appointed as Chairman.
2008- Kirlosker acquires LDW, & established in Holland.
(Lloyd Dynamo werke in Bremen, Germany.)

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COMPANY PROFILE

NAME OF THE COMPANY : KIRLOSKAR ELECTRIC CO LTD

DATE OF ESTABLISHMENT : 1948

SALES HEAD QUARTER : BANGALORE

FACTORY LOCATION : GOVENAHALLI, BANGALORE

CONTACT PHONE NUMBER : 08023374865

AUTHORISED CAPITAL : 42 CRORES

LAND AND BUILDING AREA : 16 ACRES & 4.16 ACRES

FINANCIAL YEAR TURNOVER : 245 CRORES

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In 1946, kirloskar limited company was registered as a joint stock company to manufacture electric
motors, transformers, generators and other electrical products. The company started its production in
1947. It had its initial collaboration with M/s Brush electrical company USA. The company
manufactured its first electric motor in 1948. Now in its sixth decade company manufactures a wide
range of AC and DC motors and generators up to 5000kw. Even as the company continues to grow
its core business of rotating machinery new horizons have opened up in the field of industrial
electronics.

Laxman Rao kirloskar (Founder of Kirloskar group) designed the first KIRLOSKAR product the
corn plough was mainly aimed to benefit the farmers. This was an innovation far ahead of its time
that originated the kirloskar group. The experiments never stopped but followed by the
manufacturing hand pumps, mechanized pumps, sugarcane crushers, peanut sellers and other
mechanical equipments.

All these products brought a great revolution on agriculture in the name of Kirloskar brothers, who
were behind every major Kirloskar organisation including Kirloskar electric company.The company
has signed licensing agreements with world leaders such as Thron-EMI, Fuji electric and Toshiba
among others for the manufacturing of inventors, thirstier, converters and uninterrupted power
sources respectively.

“The spark of genius innovation continued and ventured on a range of Kirloskar group of companies,
which has helped India today”. Kirloskar electric company mission faster excellence in designing,
manufacturing the products and services with innovative and challenging initiatives.

KEC believes that its strength is derived from its people. The company training programmes for its
engineers and continues retraining of its employees gives it a technological and managerial edge. It is

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the strength that allow kirloskar to take successfully any new field it entry to develop its current
business and to promote sustained improvements in quality. The company has one of the finest
manufacturing facilities, specialized infrastructure for design, manufacture and testing;
complementing a very high level of application engineering and total quality concept, contribute to
reliability that is trusted in India and Abroad.

KEC manufactures following standard and customized range of products for various applications:

• AC Motors
• Alternators/ AC Generators
• DC Machines
• Electronics Switchgears
• Traction
• Transformers
• DG Sets.

KIRLOSKAR ELECTRIC COMPANY AIMS AT:

➢ Manufacturing the quality and leading electrical products with the help of latest international
technology.
➢ The brand name of the quality for electrical product in across the globe.
➢ Kirloskar values are established in gaining excellence in engineering and marketing its
mission successfully.
➢ Ensuring customer satisfaction.
➢ Manufacturing products of highest quality using state of the art technology.

OBJECTIVES OF THE COMPANY:

 To provide products of highest quality and value.


 To achieve cost effectiveness in machine shops and production process etc.
 To invest in the technology to achieve technological excellence and competitive edge.
 Commitment for continuous improvement in process, methods productivity and quality.
 To develop employee’s mutual trust, respect and training.

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 To reduce wastage throughout supply chain.


 Human resources development.
 Quality objective.

The factory plants are located at five places namely:

1. Bangalore rural (Govenhalli, Nelamangala)


2. Hubli
3. Tumkur
4. Mysore
5. pune

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NATURE OF BUSINESS CARRIED

The business carried by the KSL is production of industrial goods viz., A.C motors, D.C
motors, generators etc. The KSL produces the motors, generators and transformers in national as
well as export to many foreign countries. The KSL Company mainly manufactures heavy volt
motors and a generator as per the customer requirements. The company has no competitors for the
kind manufacturing. It only faces competition from foreign companies. This company has a kind of
monopoly in producing big motors and generators in India. The company has established 5 offices
as global centre, which are situated at

• Singapore
• Malaysia
• Michingan
• Germany
• Sharjah

BOARD OF DIRECTORS:
As on Dec 2009, the Board of Directors of KEC comprises Eleven Directors. The
Board consists of the Chairman & Managing Director, who is a promotor Director, Two Executive
Directors and Six non-Executive Independent Directors. Details are given below:

Executive- whole time Directors:

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Mr. Vi jay R Kirloskar


Chairman and Managing Director

Mr. Malik P.S.


Joint Managing Director
Non Executive Independent Directors:

Mr. Lakshmanan A.S. Mr. Agarwal S.N. Mr. Anil Kumar Bhandari Mr. V.P.Mahendra

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Mr. Kamalesh Gandhi Mr. D.Devender Singh Ms. Meena Kirloskar

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NAME OF DIRECTORS CATEGORY OF DIRECTORSHIP

MR. VIJAY KIRLOSKAR EXECUTIVE-CHAIRMAN & MANAGING


DIRECTOR PROMOTER

MR.A.S. LAKSHMANAN NON EXECUTIVE INDEPENDENT DIRECTOR

MR.S.N. AGARWAL NON EXECUTIVE INDEPENDENT DIRECTOR

MR.ANIL KUMAR BHANDARI NON EXECUTIVE INDEPENDENT DIRECTOR

MR.SAROSH J GHANDY NON EXECUTIVE INDEPENDENT DIRECTOR

MR.V.P.MAHENDRA NON EXECUTIVE INDEPENDENT DIRECTOR

MR.KAMALESH GANDHI NON EXECUTIVE INDEPENDENT DIRECTOR

MRS.MYTHILI BALASUBRAMANIAN NON EXECUTIVE INDEPENDENT DIRECTOR

NOMINEE IDBI

MR.RAMESH D DAMLE NON EXECUTIVE INDEPENDENT DIRECTOR

NOMINEE LIC

PROJECTS UNDER TAKEN BY KIRLOSKER ELECTRIC COMPANY:


Kirloskar Electric ventured into Projects and Systems Group (PSG) understanding the Potential
requirement of the industry.

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With state-of-the art manufacturing support, Projects and Systems Group has performed the best
winning the challenging and reputed orders all over India. It has provided solutions from the
project concept to commissioning by integrating Design, Supply and Installation for large projects.

Switchyards & Power Distribution


The central philosophy of PSG is to offer a complete system of Electric Control and Automation that
is handled by us as a single source.

Sugar Industry
Surplus energy converted into electrical energy.

Cement Industry
• Fuel gases at high temperatures passed through four pre-heater stages.
• Temperature is reduced to 150 – 200 degree.

Fertiliser Industry
Co-generation depends on plant specific parameters.

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PSG formed this group to meet the challenges of Power Generation using Non-Conventional
Energy Sources.
PSG has expertise and experience in following main projects:
. Micro/Mini & Small Hydel Projects
• Co-Generation Projects
• Wind Energy Projects
• Solar Energy Projects
• Gas Based Power Projects
• Diesel Based Power Projects
• Wave Energy Projects
Steel Industry

High temperature exhaust gases are used for better energy recycling. In association with turbine
manufacturers cater to the requirements of the power plants and offer complete electric's like
generator and associated controls for diesel, small hydel projects, wind power plants and co-
generation plants.

PSG designed and executed complete electrical system for country's first co-generation plant at
Tasco Cheyyar, 5MW in Tamil Nadu and The Ugar Sugar, 32MW in Karnataka and thereafter
developed many co -generation plants.

Co-Generation

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PSG has successfully designed, manufactured, supplied, tested and commissioned couple of
challenging projects.

KEC has executed first co-generation project in Karnataka for Sugar of 30 MW in the year 2000.
KEC has also executed such co-generation projects for Prabhulingeshwara Sugar (16 MW) &
Varalakshmi Sugar (20 MW) in Karnataka.

Co-Generation: "Combined Generation" by conversion of energy contained in a fuel into two or


more usable forms.

The role of PSG in Switchyards and Power Distribution are:

PSG has developed expertise in Design, Engineering, Supply, Erection and commissioning of
Electrical Switchyard upto 220kV.

PSG has successfully commissioned total electric's including switchyard and plant electrification
for Toyota Kirloskar, Sulzer Flowel, KFIL, NALCO, BFL, Enercon, Hero-Cycles, and DGS & D
Port Blair, just to highlight a few valuable clients out of the total list.

PSG in association with General Electric Drive System USA had supplied the total electrics &
automation package of 2 Million tonnes per annum to Steel Hot Strip Mill of Essar Steel Ltd., in
Gujarat, India.

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MILESTONES
India's first satellite tracked
Proud scientists celebrated the successful tracking of India’s first satellite. The meticulously
planned event was held in Hassan, Karnataka. The team had finalized the specifications for AC
generators with Kirloskar Electric Co., taking care of intricate details like transient loading and
transient voltage regulation performance.

Missile test fired


The first ever indigenously built missile was test fired in early 90's, year before; premiere defense
organizations perfected the intricate performance requirement of the power supply unit. KEC played
a key role in building the entire power supply unit. The AC Generators of KEC were customized for
arduous duty.

India explores Antartica


India was the first developing country to join the Antartica explorations. The task team behind this
feat had done the homework right. They carried with them specially designed AC Generators,
developed by KEC that worked perfectly in sub zero temperatures.

Rajdhani flagged off


The research wing of India Railways worked with specialists
from KEC to design highly reliable AC Generators that would take that heat, dust, smoke and the
acceleration of the bogie and continue to function giving passengers of the Rajdhani greater speed,
greater comfort and increased safety.

Stealth ship launched


On 18th April 2003, national dailies splashed the launch of the first indigenously designed stealth
ship. The ship has four KEC 1000kW AC Generators which are the result of our close association
with Indian Navy, in the supply of AC Generators, for frontline battle ship.

Survival in Leh

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In the lab the Defense experts drenched it with salt spray, blasted it with sand, vibrated it, heated it in
an oven, and rocked it over the bumps. In the field they hauled it from deserts of Rajasthan to marshy
areas in Assam and yet the KEC AC Generator worked for decades. They wanted to verify whether
the AC Generators bleeds as human do when they land up in Leh, the highest place inhabited on
earth and they did id with success. That is why KEC remains the most preferred make by the
Defense establishments.

Fighter aircraft ground tested


Fighter jets, cargo planes, troops carriers, helicopters used by the Indian Air force has different
versions of ground power units to verify their systems. KEC took up the challenge to develop a
power source for testing a variety of aircrafts. By indigenously designing, manufacturing and
supplying AC Generators of 400HZ for defense applications.

Spotting the enemy on radar


The system and network to spot enemy air-craft on the radar is complex and requires a variety of
power sources. Sensitive and classified projects involve supply of entire power pack and AC
Generators in line with the stringent specifications. KEC has successfully implemented these
projects and KEC's AC Generators are working for over 25 years in critical Defense applications.

Boom of guns
The anti aircraft guns and require reliable power supply as they work under extreme climates round
the year. KEC has supplied these special purpose army generators and AC motors to keep these
special purpose army generators and AC motors to keep the guns booming without fail.

Between waves and flames


Aboard the ONGC platform with gas flames on top and tidal waves at the bottom, the KEC AC
generators are working for decades. The designers have taken care to protect the various
components that perform in this treacherous environment.

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CERTIFICATIONS OF THE INDUSTRY:


KIRLOSKER Is the first Electrical Engineering Company to get ISO 9001 certification in India
.KEC is also the first electrical equipment manufacturing company in India to be awarded with
certificate for providing ‘CE' Mark.
Kirloskar Electric is a pioneer in export of Electrical and Electronic goods for the last four decades.

Bureau Veritas Quality International (BVQI) has certified the Quality Management System of KEC.
We are also first in electrical industry to obtain ISO 9001-2000 certification by BVQI.
The ISO 9001-2000 certificates awarded to:
KEC - Bangalore, Hubli, Mysore, Tumkur.

KEMA' registered quality B.V.Netherlands, notified authority have tested our products with respect
to low voltage directive, EMC (Electromagnetic) directive and MD (Machinery) directive.

CE' stands for ‘CONFIRMATIVE EUROPEENNE' and conformity to European standards meeting
basic requirements of Safety, Health, and Environment & Protection (SHEC).

KEC is entitled to provide 'CE Marking' for AC motors, AC generators and DC machines. ‘CE'
marking allows the product un-registered legal access to the European market.

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We are proud of having established an independent laboratory duly certified by NVLAP - NIST,
USA for testing of energy efficient 3 phase Induction motors up to 50 HP.

Kirloskar Electric Test Laboratory (KETL) is first in India and among few in Asia to get NVLAP
Accreditation.

SAFETY MANUAL: (CERTIFICATION FOR AC MOTORS)


KEC PRODUCTS are designed and manufactured products according to the
standards of:

• ISO (International Organizational for Standardization)


• IEC (International Electro technical Commission)
• BIS (Bureau of Indian Standards)
• BSI (British Standards Institution)
• JEM (Japan Electrical Manufacturers Association)

AWARDS

• Best innovative product for digital drive by IEEMA at the elecrama exhibition.
• National award for R & D from the Department of Scientific & Industrial Research, Ministry
of Science & Technology, India.

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LOCATION OF SALES OFFICE IN INDIA

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LOCATION OF OVERSEAS SALES OFFICE:

AREA OF OPERATION-GLOBAL/NATIONAL/REGIONAL
Area of Operation-Global
ASIAN COUNTRIES OTHER COUNTRIES

Saudi Arabia New Zealand

Oman United Kingdom

Kuwait Africa

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Syria France

Malaysia Sweden

Dubai Germany

Srilanka Greece

Kualampur Italy

Singapore Turkey

Area of Operation National/Regional


Ludhiana Hyderabad Cochin Ahmadabad
Lucknow Bangalore Coimbatore Pune

Jaipur Hubli Madurai Mumbai


New Delhi Chennai Kolkata Guawahati

WORK FLOW MODEL


Marketing department receives the general enquiry from customers either in branch/unit offices,
which order enquiry, is discussed with other related departments before further process viz, design,
finance, production, purchase etc. After discussion with all the other departments the marketing
department gives a quotation to the customer. Then a final inspection is received from the customer
by the unit making negotiation before receiving purchase order from the customer. Once the
purchase-order is received at the office, marketing department will send an order acceptance to
MIS and production department.
The marketing department will release a specification sheet where in all the customer’s order
specification is taken into consideration. Then the design department will design the product
process and release a bill of materials. Design department also carries the function of scheduling
according to the total-time available to them to deliver the product. The purchase indent to the
purchase department. Then the purchase department contacts the vendors, send purchase order to
the vendors, then vendors supply the raw material, at the time of receiving the materials an

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inspection is carried on by the quality assurance department. After inspection of raw materials it is
supplied to the factory for producing AC/DC Motors.

Once the production process is over, test is done and again the QAD carries on inspection (and also
inspection made by the customer himself in certain cases) once payment is made by the customer
the products will be despatched.

DIRECT CUSTOMER

1. Enquiry with specification.


2. Submission of quotation.
3. Discussion for technical & commercial matter between supplier and purchaser.

Sending order to the respective zonal offices and then to head offices.

Marketing department will receive the orders and prepares the contracts.

Work order will be prepared & sent to the PPC Department to prepare plan for production.

Design department designs the product format and sends to PPC Department.

PPC Department prepares a job card of the product based on design format and sent to Manufacturing
Department.

Manufacturing Department procures the raw materials from Materials Department.

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Actual production process takes place in Manufacturing Department.

Quality Department tests the product.

Painting & packing.

Despatch the product

DIRECT CUSTOMER
PRODUCT PROFILE

PRODUCTS MANUFACTURED BY KIRLOSKER ELECTRIC COMPANY


(unit 1):

AC MOTORS;

Kirloskar Electric was the first company in India to manufacture AC Motors way back in 1948.
Since then it has manufactured millions of motors for domestic and International Market. Its initial
technology support from BRUSH Electric UK & technical collaborations with NEI Peebles
Electrical Machines, Scotland and AEG of Germany enables KEC to develop high capacity motors
for various applications. A strategic alliance with FUJI Electric of Japan enabled the company to
absorb and implement state of art technology for motors.

The product range in capacity and variety caters to multitude applications. KEC has electric motors
for every conceivable application and industry. The wide industrial range is from 0.12 to 20000 kW
in frames 63 to 1250. Motors are offered in open type, closed type and heat exchanger type

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enclosures. Voltages range from 340 to 13800 V. Class F insulation being standard for all motors,
class H insulation is also offered for low voltage motors.

specifically designed for exacting duties. The modular design totally enclosed air to air heat
exchanger is the first choice of industry for the more arduous applications. Compact rib cooled
motors with unique internal cooling are used for duty atmospheres.

The Special motors list includes Roller Table motor, Mud Gun motor, Bell Annealing Furnace
motor for steel mill applications. When India faced sanctions on supply for equipment for Nuclear
Power Plants, KEC developed special Canned Pump Motors. Motors like explosion proof, increase
safety and non-sparking ones used extensively in hazardous areas like coalmines, oil mines and
petrochemical industries are available in a wide range. Specially designed adjustable speed drive
motors in large numbers are working in various steel plants and other industries.

KEC is the only company in India and one among the 18 in the whole world to have the unique
certified facility for efficiency testing of induction motors up to 50hp. The laboratory has been
certified by NVLAP (National Voluntary Lab Accreditation Program) USA.

APPLICATION:
Industries: Agriculture, Construction, Cement, Paper, Petrochemicals, Steel, Sugar, Textile.
Power: Nuclear, Thermal.
Utilities: Cinema, Gas station, Hospitals, Hotels, Mill, Telecom.

DC MOTORS;

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Kirloskar Electric from its fabled stable of DC Motors has put into international use more than 0.1
million motors since 1969. The wide product range in capacity and variety satisfies the needs of a
multitude of applications. The Industrial Laminated Yoke range starting from frame 80 to 1250 with
outputs of 0.75 to 3750 kW caters to the industry requirement of torques up to 1500K-Nm. The
rugged and reliable higher range of motors are specifically designed for exacting duties in a hot and
cold metal rolling mill drive, the sticky rubber mixer drive and continues duty cement kiln drive.
These products come from an in house developed technology based on the best of world class
international design and manufacturing concepts.
Kirloskar Electric has a history of excelling in special application and customization. It is this spirit
that saw us develop complete electric for 5 & 10 cubic meter Electric Shovels for coal mines. Today,
there are more than 150 Electric Rope working in Indian coal mines, completely powered by
Kirloskar Electrics. India's premier aircraft manufacturing facility in Bangalore houses one of the
worlds few high power and outdoor duty vertical DC motors, for helicopter blade load testing made
by Kirloskar.

Continuing our efforts in supplying clean & efficient motive power to the environment friendly
electric material handling equipment, it is only natural that KEC moves on to electric passenger
vehicles. The prestigious CERN Super Particle Accelerator project in Geneva uses Kirloskar Electric
Super Conducting DC Corrector Magnets in very large numbers. This is a high precision product of
extreme reliability and has to work in a cryogenic environment.
The constant pursuit of newer applications has pushed KEC to enter space applications. Our space
duty Brush less DC Servo Motors will provide the Rocket Nozzle control force in Indian space
launch vehicle for the future.

The fully equipped and highly quality manufacturing facility backed by a strong force of dedicated
and skilled design, marketing and service team with a focus on quality brings in great levels of
reliability to the product that is trusted in India and abroad.

APPLICATIONS
Industries: Cement, Sugar, Rubber, Plastic, Steel, Textiles, Paper, and Printing.

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AC GENERATORS;

For over four decades, four out of every five AC generators manufactured by the organized sector
in India were made by Kirloskar Electric Company. This has resulted in a population of several
million Kirloskar AC Generators.

Their simple construction, long life and easy availability of spares through a wide network of
service centers make them the preferred choice in critical applications like nuclear, missile,
petrochemical, power and other process industries.

The unique strength of the company in customizing AC generators for special needs of missiles
projects, warships, battle tanks, and fighter aircrafts makes KEC the only company to offer AC
generators for the widest of applications.

Continuous product development has kept pace with corresponding prime mover availability like
wind mills, gas turbines, water turbines, steam turbines and variety of makes of diesel engines.
The products quality based on world class technology and state-of-the-art infrastructure makes
leading consultants specify Kirloskar Electric AC Generators again and again.

Kirloskar Electric offers AC Generators from 1kVA to 20MVA, right from low voltage of 220V to
high voltage of 11000 volts, for synchronous speeds as high as 3000 rpm to as low as 375 rpm, for
standard frequencies of 50hz or 60hz or even special 200hz and 400hz.

In alternatives of open construction or closed construction – air cooled or water cooled, mechanical
construction of single bearing or double bearing and variety of excitations system both brushless
and brush type, with class ` F ‘ or class ` H ‘ insulation, meeting the performance requirements of

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national and international standards. In the aspect of dimensions, size, weight, aesthetics and
performance they are comparable to the best in the world.
APPLICATIONS
Industries: Telecom, Textile, Agriculture.
Military: Battle Tanks, Warships.
Utilities: Fuel Stations, Milk Dairies, Cinema Houses, Nursing Homes, Construction,
Construction, Hospitals.

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ORGANISATION STRUCTURE

CHAIRMAN/MANAGING DIRECTOR

JOINT MANAGING DIRECTOR

CORPORATE VICE PRESIDENT

ASSOCIATE VICE PRESIDENT

SENIOR GENERAL MANAGER

GENERAL MANAGER

DEPUTY GENERAL MANAGER

SENIOR MANAGER

DEPUTY SENIOR MANAGER

MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

SENIOR-ENGINEERS/OFFICERS

ENGINEERS/OFFICERS

SUPERVISORS

JUNIOR MANAGEMENT-1

JUNIOR MANAGEMENT-2

JUNIOR MANAGEMENT-3

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VISION, MISSION & QUALITY POLICY

VISION:

The power of now is the energy of opportunities that come to us disguised as challenges. The power
of now at Kirloskar electric is the dynamics of making opportunities work as by meeting client’s
tough specifications of cost and quality. Empower kirloskar electric serve the world with electric
products.

MISSION:

• To remain a leading producer of electrical technology products in India.


• To continuously grow in our business and become a significant player in the world market.
• To maximise return on investment.
• To achieve international levels of excellence in technology and quality.

QUALITY POLICY

The quality policy of KSL unit-1 shall be to continually improve the effectiveness of the quality
management system, conforming to ISO 9001-2000 standard in design, manufacture, market and
service at competitive prices, products of such quality which results in customer satisfaction, quality
reputation and market leadership.

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GUIDING PRINCIPLES:

• Innovate continuously to excel in design and manufacturing.


• Develop products required by the market.
• Manufacture products of highest quality.
• Focus on the customer in all actions.
• Respond promptly to customer needs.
• Deliver supplies on time every time.
• Treat each other with trust and respect to build team.
• Develop people by training and delegation.
• Offer goods and services at competitive prices.
• Maintain safe, clean and healthy environment.

VALUES:

• Products of highest technology and quality.


• Customer orientation.
• Team work among our people.
• Profits for growth.

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FUNCTIONAL DEPARTMENTS

Kirloskar Electric Company Bangalore consists of various departments

Department play a vital role in the development of the company. These departments manage all
operations of the company. They are as follows:

 HUMAN RESOURCE DEPARTMENT


 ENGINEERING DEPARTMENT
 PRODUCTION DEPARTMENT
 MAINTENANCE DEPARTMENT
 QUALITY ASSURANCE DEPARTMENT
 MARKETING DEPARTMENT
 FINANCE DEPARTMENT

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HUMAN RESOURCE DEPARTMENT

HRD functions is to satisfy the organisational needs, Selecting right persons for the right job and to
manage people not only workers but also includes white collared professionals. Thus, the main
objective is to maintain cordial relationship, by providing maximum welfare & thereby optimising
the personal contribution for the effective functioning of the undertaking.

MAJOR FUNCTIONS

• Planning and consolidation of manpower data and projecting same to management for
approval.
• Recruitment, promotion.
• Transfer.
• Welfare and industrial relationship.
• Identify the needs & conducting training & development programs.
• Rewarding employees and boosting their morale.
• Development programs for job rotation, job enrichment etc.
• Grievance handling & implementing corrective actions.
• Updating of personnel performance records as appraised by the concerned Head of the
department.
• Ensuring safe working conditions for personnel at work & ensure compliance of statutory of
factories Act.

KIRLOSKAR ELECTRIC CO. LTD. Recognizes its employees as the most important asset for its
continued growth…HRM in KEC shall strive to ensure continuous organisational growth by
nurturing the strengths of its employees and providing the environment and opportunity for every
individual to raise to his/her highest potential. Identity and achieve his/her personal goal within the
framework of organisational, societal, and national objectives.

It shall endeavour to uphold the dignity of individuals, by making them feel proud partners in
progress, through the following measures:-

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➢ Ensure a high degree of selectivity in recruitment of employees/trainees explicitly on the


criteria of their knowledge, skills and attitudes, so as to secure super achievers and nurture
them to excel in there.
➢ Impart such induction, orientation and training, as to match the individual to the task and
inculcate a high sense of organisational and personal goals.
➢ Provides facilities for all round growth of the individual by training in and outside the
organisation, reorientation, lateral mobility and self-development through self motivation.
➢ Groom every individual to realize his potential in all facets while contributing to attain higher
organizational and personal goals.
➢ Build teams and foster team work as the primary instrument in all activities.
➢ Recognize worthy contributions in time and appropriately so as to maintain a high level of
employee motivation and morale. Appraisals and promotion shall be ethical and impartial.
➢ Implement equitable, scientific and objective system of rewards, incentives and control.
➢ Contribute toward health and welfare of employees.

RECRUITMENT PROCESS/PROCEDURES

Vacancy from each department is analyzed and call is made for employment through the internet.
The process of recruitment is as follows:

Interim written test

Aptitude test

General round

Hr interview

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Analysis of technical qualification of the candidate and previous experience

Analysis of expectations of salary

Skill testing about the communication skill, leadership skill etc.

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ORGANISATIONAL CHART OF HUMAN RESOURCE DEPARTMENT

UNIT CHIEF

GM (P & IR)

SR. ASST. CONSULTANT


MANAGER MANAGER (AMBULANCE
(Training & (Personnel ADMINISTRAT
Developme & ION) CHIEF SECURITY
OFFICER

(Security, vigilance,
telephone MANAGE
ASST. MANAGER CIVIL
exchange,
& R
receptionENGINE
(CORP. SAFETY)
ER ON
gardening)
(P & IR)
CONTRA
Safety & &
Environmental CT
FACTOR
Management Y

JUNIOR
SECURITY
APPRENTICE
OFFICER
TRAINING
MANAGER
(2)
TIME OFFICER
WELFARE
OFFICERS (2) TIME OFFICE
ADMINISTRATION
CANTEEN & COMPANY
GUARDS

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Total number of Employees;

Staff & Executives – 159 Workers – 434

In order to attract and retain talent, the company maintains the compensation structure on par with
that of the industry. They continue to make efforts to people with an environment in which they can
give their best and realize their full potential. Various hr initiatives have been taken to align the hr
policies of the company with the growth projections of the company-

 Receiving resumes from the candidates.


 Conducting interview.
 Based on performance in interview, qualification, experience candidate is selected by the
company.
 Application for appointment to be filled by candidates.
 Issue probationary engagement letter to candidate and take signature of candidate on all the
copies of letters having accepted the terms and appointment conditions.
 Entries to be made in appointment register and adult register. To give employee number to
candidates.
 Provident fund and gratuity fund application forms are to be filled by candidate.
 Issue of time card and brief about punching.
 Issue identity badge.
 Obtain bank A/C number.
 Induction by labour welfare officer.
 Sent to department head for reporting.

In KEC there are four categories of employees namely:

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DAILY RATED EMPLOYEES (DRE)

Workmen category paid on daily wages basis for 26 days

Exclusive of Sundays in the month and also based on the attendance of the worker.

In KEC there 450 daily rated employees in Unit-1 in Bangalore near Govenhalli. DRE will work
daily in 3 shifts-

 First shift; 6.30 am to 2.30 pm


 Second shift; 2.30 pm to 10.30 pm
 Night shift; 10.30 pm to 6.30 am

Production process will be going on 24 hours a day. Weekly once shifts will be changed to all the
employees. In one shift 150-170 workers are working in KEC shop floor plant.

MONTHLY RATED EMPLOYEES (MRE)

They are under the management category; they get salary on monthly basis. Yearly wise they get
increment based on performance and experience fixed by management in KEC.

There are 200 monthly rated employees in Unit-1 in Bangalore.

MRE will work daily in one shift.

 General shifts; 9.15 am to 5.15 pm

TRAINEES/APPRENTICES/GOVERNMENT/COMMERCIAL TRAINEES

The company gives only stipend and doesn’t attract any allowance to them.

LEARNERS

Their wages is only for 26 days, for learning certain work for certain period of time in order to gain
practical training.

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TRAINING AND DEVELOPMENT

A fully fledged training centre provides training to senior executives, managers, supervisors and
operators in the areas of management, marketing, technical, information technology, quality and
general program in KEC. Specific carer development courses are conducted at training centre such as
Employee re-orientation training, customer service training, promoters training, MDPs, Retraining of
operators etc. Employees are encouraged to acquire technical/management qualifications through
sponsorship form premier institutions within India and abroad, they may purse PG course in areas
that are useful to the organisation as well as in furthering their career.

PLACEMENT:

The new entrant shall be placed under the best manager in the organisation. This implies that the
manager being a role model, shall himself is a top performer, have the necessary skills in inculcating
the right values and attitudes in young people. The new employees shall be placed under senior e at
the executive who will act as his mentor. This mentorship process will start at the probation stage
and shall continue for next 5 years.

AWARDS

Awards are instituted by the company in the recognition of outstanding work performance, useful
suggestions for the improvements, and contributions to technical/academic knowledge.

PROMOTIONS

Company adopts an Accelerated Promotion Schemes for fast trackers in recognition of employee’s
performance. Systematic job rotation is carried out to nurture the all round growth of the individual
through lateral mobility. This will enhance employability as well as equip the person to shoulder
higher responsibilities. Job rotation is based on the individual’s experience, personality, attitude,
education and past performance, in addition to job related skills and knowledge. The individual will
be assisted in developing new skills and have a greater appreciation of inter-departmental and inter-
unit issues, thereby removing communication barriers.

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PERFORMANCE APPRAISAL

It is also known as employee appraisal, is a method by which the job performance of an employee is
evaluated (generally in terms of quality, quantity, time and cost). It is a part of career development.
The objective is to groom every individual to realize his potential in all facets by helping to identify
and achieve his personal goals within the framework of organizational goals. This is achieved
through objective assessment of performance and potential and identification of development actions
to be taken in order to enhance Appraisal consists of four stages viz… Self – appraisal, Performance
assessment, Development plan, Final evaluation and grading. Generally, the aims of a scheme are:

 Give feedback on performance to employees.


 Identify employee training needs.
 Document criteria used to allocate organizational rewards.
 Form a basis for personal decisions: salary increases, promotions, Disciplinary actions, etc
 Provide the opportunity for organizational diagnosis and development.
 Facilitate communication between employee and administrator.

COUNSELING:

Counselling services are provided to enhance employees’ competence and job satisfaction, to prepare
them for future responsibilities, to establish better working relationships and to cope up with
personal problems. Counselling is carried out by HRD Appraisers and professional counsellors.

CAREER PLANNING

This is to ensure that people of the right calibre are available to meet the present and future
requirements of organization. The process identifies the necessity inputs aim at imparting
technical/managerial knowledge, inter-personal skills and attitudes that will helping dealing with the
external and internal environments. Other factors to develop potential include activities such as
exposure to new functional projects.

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JOB ENRICHMENT

KEC follows a people centred approach to job enrichment with a view to enhance performance of
employees, lending to higher job satisfaction. Job enrichment shall be supported through multi-skills
operation, self –inspection and operator planning function.

SUCCESSION PLANNING

Every manager in KSL organization will prepare a succession plan to all position under him, identify
the persons and provide required inputs to the probable successors. In order to identify the right
incumbents with high potential for all positions, concerned HOD (head of the department) and unit
chief shall implement the process. HR department shall co-ordinate this activity. Succession planning
and career planning shall be reviewed every 6 months in the company.

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ENGINEERING DEPARTMENT

INTRODUCTION

Engineering department plays a major role in giving shapes the products i.e. electric motors,
generators, transformers and controllers. It is mainly concerned with designing the product
according to the needs and wants of customers. Highly, technically background employees will
work together to ensure maximum satisfaction to the customer. This department consists of 75
employees. They also undertake 3 comprehensive reviews of products before adding new
features. Engineering department interacts usually with various departments to bring effective
results to the company in the form of profits and maximize the wealth of the shareholders. The
department outlays designs, drawing and sketches required by the production department and
keep track of recent changes in the technology thereby diversifying the product produced by the
organisation in the modern era of computation.

FUNCTIONS

• Converting customer specification into procurable, manufacturing and evaluating product


specification.
• Design the product.
• Plan and arrange of raw material, manpower and other facilities required to meet
schedule.
• Preparing production realization timing chart for new production development.
• Ensuring that production is completed in time.
• To reduce wastages.

RESEARCH AND DEVELOPMENT

This department gives a supporting hand for engineering department by analyzing the products with
respect to materials requirement, their capabilities, uses and specific functions involved in the
materials and quality specifications. This department has 6 employees. Research is conducted by

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research group. After research is done, product development starts and done by engineering
department.

CHALLENGES IN ENGINEERING DEPARTMENT

• Coming out with positive result with lots of constraints.


• Adapting them to changing market.
• More computer oriented applications.

STAGES INVOLVED IN PROCESS OF ORDERS

• Branch or unit will receive the orders.


• Combine technical information along with commercial parameters (cost, delivery date,
advance to be paid etc)
• The order will be released on customers engineering department.
• Make drawings, specification saying that specified that components should have properties.
• A document by name “BILL OF MATERIALS” will be prepared which consists of
chronological order of materials along with their quantity.
• “BILL OF MATERIALS” is conveyed along with drawings, datasheets like catalogues.
• Incoming material inspection will be done by quality control department.
• Stage quality inspection will be done if material is available in house.
• After this, materials are sent to assembly shop to form finished product.
• Final inspection with respect finished products is done by quality control department again
verifying customer’s wants and meeting their requirements.
• After final inspection, packing and dispatching of product is done.
• If there is any problem in the product, service department will take care.

PRODUCTION DEPARTMENT

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Introduction:

Production department is the main department in any manufacturing unit as all manufacturing
activities are undertaken by this department.
Production department in any industry performs the functions of converting raw materials
into finished goods requires a predetermined plan so that available resources of company are used to
optimum level and more wastage is reduced to the greater extent.
KEC has always tried to excel in what one knows the best. In the process of progress, KEC
has laid great emphasis to use the best technology.

MANUFACTURING SYSTEM IN KECL

Based on marketing department’s requirement and other documents received by planning and
material management department the production activity is undertaken. Based on the requirement of
the production department the stamping division plans production activity.

KECL has production shops which are supported by:

• Feeder shop
• Tool room
• Shaft line
• Machine shop

FEEDER SHOPS:

Shop number I, II & VI are feeder shops.

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OBJECTIVES:
To explain the various function carried out in the respective shops & organizational setup.

FUNCTIONS:

Production
Delivery
Drawing of materials.
Industrial relations.
Activities of tool room (shop I & II)
Activities of tool crib (shop I & II)
Fixing & revision of incentives (shop VI)
Processing activities.

PROCESS ACTIVITIES OF SHOP I & II Machining

• Marketing • DIC-Costing • Sub-Assembly of


• Drilling • Pressing report.
• Tapping • Shrinking
• Burnishing • Balancing

PROCESS ACTIVITIES OF SHOP VI

. Chromatin process for aluminium components.


. Phosphate of mid steel components.
. Premier painting
. Unibake painting

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PRODUCT SHOPS:

Shop III & V are product shops

OBJECTIVES:

To explain the various activities carried out in the respective shops & organizational setup.

FUNCTIONS

• Production • Interactions
• Delivery • Production planning & controlling (shop V)
• Drawing of materials • Process activity
• Industrial relations

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WORKING PROCESS:

The production dept of K.E.C. unit I is divided into six different shops. These shops are inter-
connected. The central planning sets the program and then the production starts. In case of standard
products some specifications are mentioned, its numbers are given to each product for identification.
The last stage is the dispatching of goods when all the products are assembled & they assure the
quality, they are sent to painting & then to the dispatch section.

Status of production at KEC.

Particulars % of production

Out sourcing 40%

Self manufacturing 60%

Total 100%

Compiled based on Personal Interview

Percentage of discount available for the company for early payment;

Days Percentage

30 2%

60 4%
Immediate payment 5%

Compiled based on Personal Interview;

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✔ The credit period of KEC is 90 days


✔ In unit one KEC is producing heavy electric motors like more then 1000 KW DC and
AC motors.
➢ Raw materials are purchased based on orders from clients,
For purchasing of raw materials KEC is adopted JIT technique.

PROCESS OF VENDOR SELECTION IN KEC LTD;

✔ Totally 130 Vendors of the company.


✔ Vendor Development Department (VDD) performs the Vendor selection process.
✔ Steps followed in Vendor selection are:
Step 1: Identification of company requirements.
Step 2: Search for the Vendors.
Step 3: Consideration of Vendor based on Infrastructure, financial status and Good will of the
Vendor
Step 4: Receiving Vendor Profile (based on spare facility, financial status, his Customers, workers
qualification)
Step 5: Final Selection of Vendor based on 3 Trial orders.
Step 6: Vendor rating as A, B, C and feedback and training.
✔ MS-Excel is used to maintain Vendor database.
✔ Telephone and E-Mail are the mode of Communication between the company and vendors.
✔ Quality standards are fixed for each product of the vendor according to Quality Assurance
department.
✔ Rejected raw materials are returned to vendor and vendor has to bare all the cost.
✔ Vendor codes are given for financial transactions.
✔ Company selects new vendors only in the following cases:
➢ In case of increase in Production.
➢ In case of new product development- where the existing vendor fails to supply required raw
materials.

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➢ Misunderstandings between the company and the Vendor in payments.


✔ Company finds new vendors through the people of purchase department, “Yellow Pages” and
through Internet.

Risks involved in Vendor selection are:

New Supplier Risk- In case of new suppliers, Vendor has to adjust for the Company standards.

Business Risk - Improper supply of quality raw materials.

Time Risk- Delay in Delivery Time of raw materials. This is the main part of Purchasing.

To reduce the risks involved in vendor selection, company considers few measures like Vendor’s
infrastructure, good will and the employees of the vendor.

Process of Negotiation:

• Company is finalizing the price for raw materials.


• Calculation of project cost and process cost which forms working cost is calculated
and finalized by Costing department.
• Based on the working cost; Negotiation process is carried out.
• Vendor Development Department (VDD) is carrying the Negotiation process.
• Before receiving the raw materials, negotiation is carried out.
• 5% is the profit fixed by the company on all its finished goods.

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There are two types of payment;

Direct Payment-For DC department-90 to 100 days is the payment period.

Letter of Credit-For AC department- 90 days is the payment period.

Responsibility of Production Department:

1. Creating awareness among department personnel.


2. Identification of resource requirement & provision of adequate resource.
3. Participation in design review when necessary.
4. Implementation of storage/handling instructions.
5. In-process & final product are identified.
6. Quality assurance department will be provided information by production department for
traceability of products.
7. Modification to system documents to incorporate proven corrective action.
8. Handling, storage and preservation of materials and product.

Storage

Materials at the process stages shall be stored appropriately to prevent damages & deterioration of
quality.

Materials/Products/components are stored in identified locations.

Customer supplied products shall be stored along with appropriate identification taking adequate
care.

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Production

• The KEC has its own production plant.


• The KEC depend up on order accepting by marketing department for production.
• In KEC every month production plan is done.
• The installed capacity of KEC is 114.627 MW.
• Conversion period is 3 months.
• In KEC every month an average 300 units are manufactured
• Finished goods storage is 2 weeks (up to 4 weeks).
• Finished goods storage is 2 weeks (up to 4 weeks).

The KEC electric power has taken from Karnataka power corp. ltd worth of Rs 255.14Lk
• Direct workers cost is 1037.48 lakhs
• Indirect workers cost is 741.06 lakhs

The quality control expenses are 211.67 (lakhs)

Tables shows the production overhead of KEC


(Govenhalli unit)

Particulars Costs in lakhs % of cost

Power and lighting 255.14 50%


Welfare expenses 135.89 27%
Other 116.74 23%
Total 507.77 100

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TRANSPORTATION
In bound logistics
✔ In KEC for other then JIT purchase company will use the private vehicles.
✔ In KEC 95% depend on road transport for receiving and sending of the goods.
✔ Including transportation cost quotations are prepared by the KEC and suppliers are responsible
for transporting the raw material to the warehouse of the company.
✔ From the warehouse to the layout of production to transport material Cranes are used which are
company owned.
✔ Price will fix by based on distance, weight and type of vehicle or 5% margin.
✔ In KEC stamping materials are importing from Russia.

Major importing costs are.


• CIF price- 82.19 (in lakhs)
• Customs – 3.10 (in lakhs)
• Clearing charges-1.83 (in lakhs)
✔ The Other travelling charges 29.64 (in lakhs )

Out bound logistics


✔ The KEC has made contract for transport with Babu Traders and ARC (Associate Road
corporation)
✔ KEC maintaining certain standard rent for sending finished goods from Govenhalli unit to
Bangalore.
• Matador -900
• Canter - 1200
• Truck (lorry) – 1500
✔ In KEC most of the time customer only takes the delivery from companies dispatching unit.
✔ The customer only bares the transportation and insurance charges.
✔ In KEC some time company send the goods to customers.

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Stages of control Production Processes:-

Control during/ in usage of material:-

1. Goods issue against production order.


2. Ensuring specified material is taken for processing.
3. Ensuring inspection status of input material as indicating conforming before taken up for
processing & reporting of any damage if any.

Control in the Usage of Document & Data:-

1. Maintaining pertinent issues of drawing, specification, datasheet, process sheet etc… required
for production.
2. Provide applicable work instruction & reference of process sheets, production resource tools
etc… along with production orders.

Control in the Usage of equipment of processing:-

1. Creation of routings in SAP systems.


2. Ensuring that appropriate equipments are used for production.
3. Co-ordination of preventive, maintenance activities with plant engineering.
4. Ensuring prompt action in the event of process equipment breakdown.
5. Releasing of measuring instruments for calibration.
6. Verification of jigs and fixtures.

Responsibility of HOD – Production Department

1. To schedule the production program to achieve the set targets.


2. Monitor and review of manufacturing activities with the shop of supervisors to achieve
targets.
3. To monitor and ensure safety precautions are adhered to during production activities.
4. To co-operate with engineering department for any design modification or rework activities
during production.
5. Interacting with customers and updating the production status.

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6. To ensure optimum work in progress in the shop floor with the co-ordination from the
procurement team.
7. To study and improve the stator pressing in co-ordination with shop supervisors and
engineering department.
8. To identify the requirements of production resources tools, jigs and fixtures for effective
production in the shop floor.

STATISTICAL TECHNIQUES USED TO MAINTAIN QUALITY-


• Flow chart
• Check sheet
• Pareto chart
• Bar line
• Cause & effect diagram.

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MAINTENANCE DEPARTMENT
Integration
Through integration with other modules (for ex: materials management, production, sales and
distribution, personnel management, and controlling) the data is always kept current and processes
that are necessary for plant maintenance and customer service are automatically triggered in other
areas (for ex: a purchase requisition for non-stock material in the material management/purchasing
area).

Responsibility
• To attend breakdown of any machine.
• To ensure enough spares are available.
• To ensure smooth work flow.
• To make sure all instruments are working properly.
• Maintenance of the whole building.
• To ensure all safety material is good condition.

When there is breakdown in the company the supervisor of that section reports immediately to the
maintenance department. Maintenance department immediately attend to that machine if the machine
is under warranty then maintenance department solves the problem on their own. While working
production supervision finds or receives message from machine operator, about the possible
malfunctioning of machine completely stops. In such situation production supervisors writes the
break down slips. The maintenance supervisor analyses the solution like breakdown. Technicians
identify the exact failure and cause of the problem is solved and carries out the rectification work.
Then to ensure that the identified problem is solved they check for trail runs of machine is handed
over to the production and for completion of job on the breakdown.

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QUALITY ASSURANCE DEPARTMENT


INTRODUCTION:
Quality is the fitness to end use. It is all pervasive. In this modern & competitive world each & every
company is training hard to introduce quality & detect – free products. K.E.C. is one such industry
whose priority is not to be number one in quantity but in quality and reliability.
KEC tries hard to see that the quality of a product is ensured by the total investment of all workers.
There are very skilled & smart employees who actively take part in quality improvement.
QUALITY POLICY OF KEC LTD;

“To continually improve the effectiveness of the Quality management system, conforming to ISO
9001:2008 Standard in design, manufacture, marketing & services at competitive prices, products of
such Quality resulting in Customer Satisfaction Quality Reputation & Market Leadership”.

Total Quality Management Depends on:


• Shareholders Satisfaction
• Employees satisfaction
• Vendor’s satisfaction
• Customers satisfaction
Quality Assurance Programmer takes into account the requirements of this part can be used, after
agreement between the purchaser and the manufacture, to verigy the quality of the manufacturing
process.

Responsibilities of Quality Assurance Department:


➢ Achieving the quality requirement as per ISO 9001 for products manufactured.
➢ Delegation of duties to the staff along with issue, distribution and control of documents and
data.
➢ Control of data prints & ensuring the same is maintained.
➢ Maintain records of products against identification and traceability.
➢ Carry out inspection/testing of products at predetermined stages.
➢ Ensure usage of only valid calibrated measuring instruments or equipment.

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➢ Responsibility for identification, documentation, evaluation & notification to the concerned


department about the non conforming product to prevent their inadvertent use.
➢ Reviewing none conforming & implementing appropriate corrective actions.
➢ Identification of appropriate statistical technique.

Inspection of Machine
Before start up, the machine should be tested as detailed below for proper execution and readiness
for operation:-
 Are the bolts are tightened at the feet of the machine.
 Is the machine is correctly coupled to the driving/driven machine.
 Is the machine is correctly connected.
 Do the brushes move freely in the boxes of the brush holders?
 Is the brush rocker in labelled position?
 Do the winding have minimum insulation resistance?
 Is the machine closed circuit cooling system in order?
 Are the bearings is in good condition and properly.
 Is the armature is free to rotate.
 Is the fuses and other protective device is in proper condition.

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STRUCTURE OF Q/A DEPARTMENT

DEPUTY GENERAL MANAGER

SENIOR MANAGER

MANAGER

ASSISTANT ELECTRICAL ASSISTANT MECHANICAL


MANAGER MANAGER

INSPECTOR INSPECTOR

Material Management Department functions

FUNCTIONS:
• To exercise purchase budget control based on the material requirement.
• To prepare purchase order as for the procedure of company having.
• To plan for production item are based on the purchase requirement of MMD.
• To finalize the terms of purchase.
• Maintaining the document as per purchase of raw material.
• Maintaining the quality records in MMD.
• TO feed the materials to the production division at required delivery schedules at an
economic cost.
• To plan and process material conforming to specification through adequate selection of sub
contracts.

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FUNCTIONS OF QUALITY ASSURANCE DEPARTMENT:


 Incoming material inspection and testing of products received at stores as per specified
purchase requirement as per documented procedures.
 Supplier’s quality rating.
 Assisting coordination in disposition of non conforming products.
 Preparation and maintaining of quality plans.
 Maintaining housekeeping and safety regulation in testing areas.
 Conducting routine engineering test on products.
 Generation of reports for analysis, review and initiating corrective and preventive actions.
 Ensuring proper identification, inspection status of products.
 Customer inspection.

RESPONSIBILITY
• Quality objectives.
• Control of documents.
• Control of records.

RESOURCE MANAGEMENT
• Determination of competency.
• Identification of trainee.

PRODUCT REALIZATION
• Planning of measuring instruments requirements.
• Product status identification & traceability.

PREVENTION OF PRODUCT DURING INSPECTION & TESTING


• Calibration of measuring devices.
• Providing inspection/test/quality plans.
• Verification of purchased product/in-process and find inspection & testing.

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MEASUREMENT, ANALYSIS & IMPROVEMENT


• Monitoring and measurement of product.
• Control of non-conforming products.
• Analysis of product.
• Continual improvement.
• Corrective action/prevention action.

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MARKETING DEPARTMENT

Introduction:

The word “Marketing” is derived from Latin word “MARCATUS” which means MERCHANDISE
where trade or place of business is conducted. The essence of marketing is a transaction, which ,
occurs when one social unit strives to exchange something of value with another social unit.
Marketing takes into account various activities like marketing research, product development,
distribution, pricing, advertising, personal selling. It acts as a “link” between producer and consumer.
It maintains equilibrium between mass production and mass consumption. Hence the entire
marketing is vital for the organisation.

Duties and responsiblitiy:

➢ Generation of enquires.
➢ Customer visit.
➢ Updating technical data at branches.
➢ New customer development.
➢ Post contract review-correspondence SAP & planning.
➢ Shop discussions.
➢ Contract review on progress, inspection and clearance.
➢ Pending orders review and feedback to branches.

Objectives and policies:

 To identify the potential business available.


 Preparing operating plans-short term/long term.
 Diversification plan to expand business.
 Monitor market fluctuations and act on time to correct the situation.
 Identify the market needs.

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KEC has various ways of marketing

1. Personal visit:- Marketing partner makes a personal visit to the customer. Gives the
detailed information about the company and its facilities. The marketing manager is
responsible for convincing and getting order from the company.

2. Industrial display:- whenever there is a trade fair which happens at once every year,
KEC displays is products and facilities. They have stall set where interested visitors can get
all details.
3. E-Business:- E-Business is a boom these days. KEC has her own site. This www.kriloskar-
electric.com website is registered with Google search engine.

4. Business magazines and business newspaper.


5. Distribution channel.
6. Direct channel
7. Through dealer.
8. Through branches.

Promotion strategies:

 Pre-tendering and after sales services.


 Direct interaction with customers.
 Adherence to commitment during execution.
 Participate in trade exhibition with and outside.

EXPORTS

Mainly KEC products are exported to USA, Europe, Canada, Hong Kong, Australia, china,
Singapore, south Africa, Malaysia, Pakistan, Japan and Bangladesh.

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The marketing functions have performed in Kirloskar Electric Company. Its division are:-

1. Purchasing
2. Storage
3. Packing
4. Labelling
5. Pricing
6. Dispatching.

PURCHASING

Kirloskar electric co ltd follows the path of purchasing which is to produce materials at the right
place, right quality, right time, right quantity, right purpose, and right contractual terms. The
company adopts decentralized method of purchasing. Purchasing is done on foremost it depends on
the order received from customers and the quality of goods/products required by them. Purchasing is
done through long term contracts, through personnel enquiry and also through negotiations.

STORAGE

Storage protects goods, provides supply of goods, helps to adjust, demand and supply, shifts risk and
promote orderly marketing.

PACKING

Packing in Kirloskar is done by keeping the following points in view:-

• To provide the products until it is used.


• To provide the consumer convenience.
• To minimize distribution cost, handling cost, storage cost, transportation cost etc.

Packing also depends on the mode of transportation used to transport the products. The products used
to pack semiconductors and photovoltaic are cotton thermion packing and wooden boxes.

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LABELLING

The products of the Kirloskar electric co ltd are packed in boxes that have prints of KIRLOSKAR-
EDN on it. That itself acts as label and brand name of its products.

PRICING STRATEGY

Company is adopting different types of pricing strategy for its products. It is based on the demand for
the products, credit period, prompt payment, performance of the customer, manufacturing of
products based on customer’s specification and market condition.

The total cost of production is first estimated. When the demands are more favourable, then
skimming price strategy is adopted.

• Some time a customer may stipulate a particular specification of product. At that time the
company charges special price for its products.
• Company follows “penetration strategy” whenever there is a high competition in the market.
• Company also makes a price variation based on the mode of payment and also extended
credit period.
• If the mode of payment is immediate (cash purchases), company shares lower price and also
gives cash discounts.
• If the credit period is more than acceptable time, company charges higher rates for its
products.

DISPATCHING;

This is the last step in KEC marketing where the products manufactured are dispatched to the
concerned customers.

RESPONSIBILITIES OF HOD DEPARTMENT

• Responsible for disposal of quality of the product.


• Preparation of the order requirement plan in cases of direct customers.

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• Co-ordination in resolving issues with the customers in cases of any contract review
problems.
• Control of the customers drawings.
• Approval of the material indent to purchase department.
• Handling, storage, packaging, preservation and delivery of finished goods.
• Collecting of payment from customers in time.
• Ensuring proper co-ordination in order to make sure the product reaches the customer on the
due date without any complications.
• Making necessary arrangements for reaching out to the prospective customers and their
satisfaction.

STATUS of customer satisfaction is measured through 2 principle intervention

CUSTOMER SATISFACTION SURVEY;

This is carried out by sending structured questionnaire to major customers & extracts their opinion
about the product been offered. The corporate standards & quality assurance group analyze the data
collected. The satisfaction is regularly measured & reported for internal reviews & also for reviews
at higher levels in the organization. The results of these are used to update the quality management
systems & procedures.

CUSTOMER COMPLAINT HANDLING SYSTEM;

This is an important activity initiated from the inception of KEC. But the mission critical
requirement of some customers, expect past corrective/preventive actions. A comprehensive &
clearly documented system is implemented throughout the company to handle complaints more
systematically. The calls & complaints from the customers are systematically processed for timely
response & solution right from the branch, maintenance centre or the site itself. The complaints are
continuously monitored & regularly reviewed by the unit chief to ensure speedy redressel

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WORK FLOW MODEL:

Marketing department receives the general enquiry from customers either in branch/unit offices,
which order enquiry, is discussed with other related departments before further process viz, design,
finance, production, purchase etc. after discussion with all the other departments the marketing
department gives a quotation to the customer. Then a final specification is received from the
customer by the unit making negotiation before receiving purchase order from the customer.

Once the purchase order is received at the office, marketing department will send an order
acceptance to MIS & production department.

The marketing department will release a specification sheet where in all customers order
specification is taken into consideration. Then the design department will design the product process
& release a bill of materials. Design department also carries the function of scheduling according to
the total time available to them to deliver the product. The purchase indent is given to the purchase
department. Then the purchase department contacts the vendors, send purchase order to the vendors,
then vendors supply the raw materials, at the time of receiving the materials an inspection is carries
on by the quality assurance department. After inspection of raw materials it is supplied to the factory
for producing AC/DC motors.

Once the production process is over, test is done & again the QAD carries on inspection (and also
inspection made by the customer himself in certain cases) once payment is made by the customer the
products will be dispatched.

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SALES PROCESS

Customer enquiry study analyse and enquiry

Issues enquiry to executing agencies

Obtain approval for tender submission

Submit approved offer with draft time schedule as required

Tender opening meeting and preparation of competitive statement

Won the order

Finalization of offer

Contract signing with the customer

Thus product is finally sold to the customer

Receipt of payment

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FINANCE DEPARTMENT

LIST OF STOCK EXCHANGES;

Bangalore Stock Exchange Ltd

Madras Stock Exchange Ltd

The shares of the company are also traded on the indo next platform of BOMBAY Stock Exchange
Ltd.

STOCK CODE;

Bangalore Stock Exchange Ltd – KIRELECTRIC

Madras Stock Exchange Ltd – KRL

Bombay Stock Exchange – 590052

ISIN Number – 134B01017

Finance Management provides a framework for financial decision making. It is concerned with
efficient & wise allocation of funds to various uses. Kirloskar Electric Company Ltd situated at
Govenhalli has a corporate finance department at Malleshwaram, which is responsible for all the
major financial decisions.

CORPORATE FINANCE DEPARTMENT;

The corporate finance department controls the financial activities of all 5 units of Kirlosker Electric
Company (KEC). It is responsible for taking all the important financial decisions & also prepares the
annual operating plans & the long range plans.

The monthly operating plans are divided into weekly & daily plans. The unit has a fixed target on
daily basis derived from operating plan prepared on daily basis & circulated to the entire concerned
corporate officer.

All units are functionally accountable to the corporate department & is monitored & revived
quarterly. Some of the decisions taken up in this department are,

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• Dividend policy
• Capital Expenditure
• Diversification
• Collaboration etc.

STRATEGY;

The company follows the long term & short term strategy for all departments. It is the process of
establishing long term quality goals & defining the approach to meet these goals.

KEC is centred on quality based on the participation of all its members & aiming at long term
successes through customer satisfaction & benefits to the members of organization & society. The
future plan KEC is to expand the existing business.

FUNCTIONS

• Maintenance of payroll records.


• Maintenance of sales and purchase books.
• Maintenance of cash and bank records.
• Updating the general and subsidiary ledgers.
• Preparing the management information report.
• Passing bills.
• Invoicing/costing.
• Taxations.

When the department gets the purchase orders and supplies bills, they verify it and forward it to the
accounting department. Here the costing is done in 2 ways:

– Job costing
– Batch costing

Responsibilities of head of the department

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• Responsible for sales tax, income tax return & periodical returns to the bank.
• Also responsible for preparation of profit and loss account and balance sheet.
• He is authorized-signatory for payment of vouchers, receipt and also looks after the overall
administration of accounts and review of the work of the personal.
• He is responsible for financial-accounting system and verification and scrutinizing the
account in general ledger and preparation of profit and loss account as well as balance sheet.

SHARED VALUES;
• Customer satisfaction-
The company is dedicated to building a relationship with their customers where they become
partners in fulfilling their mission. It strives to understand customer’s needs & to deliver
products & services that fulfil & exceeds all their requirements.

• Commitment to total quality-


The company is committed to continuous improvements of all activities & supply product &
services that confirm to highest standards of design manufacture, reliability maintainability &
fitness for uses as desired by our customers.

• Cost & Time consciousness-


The company believes that success depends on its ability to continually reduce the cost &
shorten the delivery period of products & services. It will achieve this by eliminating waste in
all activities & continuously improving all processes in every area of work.

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STRUCTURE OF THE DEPARTMENT;

VP & Unit chief

VP & CFO

DGM-Finance

DGM-CORP Finance

Assistant
Manager

Costing, fixed Export Treasury


assets, inventory management Payroll Excise
formalities

SOURCES OF FINANCE;

• STATE BANK OF INDIA


• ICICI BANK
• BANK OF INDIA
• BANK OF BARODA

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COMPANY PERFORMANCE;

During the year under report, your company has achieved a turnover (Gross) of Rs 9.63
billion. The operations have resulted in a net profit of Rs. 302.12 million.

INDUSTRY OUTLOOK;

The electrical industry has been witnessing consistent growth during last few years but for the
slow down witnessed during the second half of the last year. The performance of the industry
is directly related to the country’s GDP growth. If the monsoon is good & the industrial
revival takes place for which the government has several steps, the electrical industry can
regain its momentum.

APPROPRIATIONS

Equity Dividend

In order to conserve for resources for company’s growth, the company has not transferred
any amount to its General Reserve.

Preference Dividend

Payment of dividend of 7% on the preference shares issued to IDBI Bank ltd on 1800000
preference shares of Rs 100 each from 1.10.2001 to 30.4.2003 & 1200000 preference shares
of Rs 100 each from 1.5.2003 to 31.3.2004.

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SWOT ANALYSIS

The SWOT approach is distillation of the steps & considerations that should be taken to
formulate an effective strategic plan. The terms SWOT is the acronym for Strengths,
Weakness, Opportunities & Threats.

STRENGTHS:

• KEC is one of the rare units in the world which produces the high voltage AC/DC
Motors & Generators.
• Management is very stable, that forms strong foundation for the company
• The company has got the ISO certificate for producing quality products
• Well equipped quality control department for inspecting the quality of incoming raw
materials & final products
• Employees are being provided with all necessary welfare facilities
• There are highly skilled & committed employees
• Company guarantees job security to all its employees this makes them to be more
committed & loyal.

WEAKNESS:

• Under utilization of the resources


• As the company provides job security the employees have become less productive
• Less coordination between different departments

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OPPORTUNITIES:

• The company has an opportunity to expand its production units due to more demand
for its product
• The company has got better tool for better planning & decision making
• The company can establish more branches across the globe
• There is a growing demand for motors & generators in other developing countries.

THREATS:

• Cost of production is very high


• The company faces competition from MNCs

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FINDINGS

• Strength of KEC is its Brand Name


• KEC is willing to take up any challenges customization project & successfully
implement it
• Advertisement costs are too less because they manufacture the products based on the
orders
• Kirlosker electric co, has ISO, KEMA, CE & NVLAP certifications
• Quality assurance department is maintaining the quality of the product & it has
become basis of competition with other companies
• Company is eco friendly, they recycle the waste water & reuse the same water for
their daily use like washing & gardening
• They have well integrated SAP & use data base like ORACLE or other RDBMS that
co-ordinates & connects various information of different departments, hence it
provides ready information to the top level management to take immediate decisions
• The ready acceptance of Kirlosker Electric products in USA, Europe, Canada,
Hongkong, Australia, China, Singapore, South Africa, Malaysia, Pakistan &
Bangladesh along with the effort to earn certification like world’s leading company.

SUGGESTIONS

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• Manufacturing cost to be lowered by improving productivity


• An extensive & effective marketing strategy needs to be carried out by the company
• Employee satisfaction & retention of manpower should be checked & ensured
• Company can encourage more women employees
• Provide sign boards within & outside the company premises to facilitate easy
identification of the department
• Can improve the infrastructure of training & development centre in order to provide
better environment for the learners & trainees.

CONCLUSION

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The company has been pursuing its fascination with future since the year it was established.
KEC began its endeavour by catering to the needs of domestic market & slowly & steadily
expanding its activities by exporting to countries like USA, Canada, Hong Kong etc. Due to
increasing demand for its quality products which are ISO certified. The quality is maintained
with strict attention to every small aspects from raw material procurement, manufacturing
processes to the final product dispatch. A meticulously planned & strictly followed quality
assurance program which helps in establishing KEC’s quality criteria that accommodates
product design, manufacturing, testing & statistical monitoring. The company has very good
personnel department wherein the employees are given appropriate bonus, promotion &
extensive care is taken by providing required training & motivation as & when required. The
organization follows autocratic type of leadership style & the decision making is centralized.
Therefore, the company being highly established from years has very good future in terms of
expansion, diversification, collaborations, growth & development prospects & opportunities.
It has a strong customer base; good positioning in the market, goodwill & reputation earned
due to its quality products & finally always believes in power of now leading to more success
& achievements year after year.

The in-plant-training for a period of 6 weeks has given me a clear- cut idea of an organization
working. This has helped me in recalling the theoretical concepts learnt in 1st year MBA &
relating it with real working & applicability in life. It is also helping me in learning
management concepts of 2nd year MBA. I came across many real problems faced by
organization in day to day activities such a technology human management & physical
resource management to overcome the problems by combined efforts of all the related
departments. Thus management is the accomplishment of results through efforts of peoples.

During the 6 weeks, it was totally a new experience entering into the organization & spent
most of the time visiting various departments, interacting with people etc. In the beginning of
the training, I went to different production sites where the assembling of the material is taking
place.

There I understood as to how the production work is divided & how the responsibility is
allocated. After production site I the subsequent weeks I went to different departments like
human resource management, quality, marketing, finance etc. I was able to understand the

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importance of each department & their contribution towards the achievements of the
company objectives. I came to know the importance of managerial knowledge such as
planning, organizing, directing, controlling & decision making in all day-to-day departmental
activities.

I also learnt the importance of time management that is a key parameter for any organization
towards the success path. It was really fruitful & great experience working in the organization
like KIRLOSKER ELECTRIC CO LIMITED, which is of great repute in the electrical
industry.

Finally, the training period in the company was a wonderful small time experience in the
huge corporate.

BIBLIOGRAPHY

Books referred:

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ORGANISATION STUDY

• Ashwathappa K, Human Resource Management


• Kotler Philip & Gary Armstrong, Principles of Marketing
• Annual Report of the company for the year- 2008-2009

Websites:

www.kirlosker-electric.com

www.google.com

COMMUNITY INSTITUTE OF MANAGEMENT STUDIES Page 87


ANNEXURE

BALANCE SHEET AS ON 31st MARCH, 2009

(Rs in Millions)

RESULTS OF OPERATIONS 2008-2009 2007-2008

Income 8659.6 8207.8

Expenditure 6674.9 6068.0

1984.7 2139.8
Gross Profit
1333.1 1263.1
Operating Expenses
651.6 876.7
Operating Profit Before interest & depreciation

Interest
225.3 150.2
Depreciation, amortization & provisions 165.1 134.1
Operating profit before tax & extraordinary items 261.2 592.4

Other income (net) 87.3 101.7

Net profit before tax & extraordinary items 348.5 694.1

Extraordinary income (Expenditure) 0 1.8

348.5 695.9
Net profit before tax & after extraordinary items
46.4 75.8
Provision for taxation
302.1 620.1
Net profit after tax & after extraordinary items
DISTRIBUTION OF SHAREHOLDING AS ON 31.3.2009

Shareholding No. of share holder No. of shares No. of share No. of shares

% of Range In Demat Form Holders in


physical form
1-500 1209 1274230 24390 913683
8
501-1000 517901 331 341849
644
1001-2000 512382 139 235183
341
2001-3000 292817 57 140710
116
3001-4000 172067 27 93168
48
4001-5000 297990 19 83580
64
5001-10000 704365 22 152109
97
10001 & 36142551 16 8646782
above 102

Total 13510 39914303 25001 10607064


Total no. of shareholders % No of shares % of share holding

36,488 94.75 2187913 4.33

975 2.53 859750 1.70

480 1.25 747565 1.48

173 0.45 433527 0.86

75 0.19 265235 0.52

83 0.22 381570 0.76

119 0.31 856474 1.70

118 0.30 44789333 88.65

PATTERN OF EQUITY SHAREHOLDING AS ON 31.3.2009


Category No of shares held % of shareholding
Promoters 25003593 49.49

Banks, Financial Institutions 5030665 9.96

Foreign Investment Institutions 850 0.00

Private Corporate Bodies 5909615 11.70

Indian Public 12594224 24.93

NRIs/ OCBs 1982420 3.92

Total 50521367 100.00

The segment wise turnover of the company is as follows;


Products 2008-2009 2007-2008

Rotating machine group 4186099 4485969

Power distribution 4933071 4374105

Others 510131 601978

Total 9629301 9462052

ABRIDGED BALANCE SHEET AS AT 31st MRCH 2009


(Rs in 000’s)

Particulars 31-03-2009 31-03-2008


Sources of Funds

Shareholders’ Funds

a. Capital 742,888 742,888


b. Reserves & surplus
916,901 647,130
Loan Funds

a. Secured loans
b. Unsecured loans 1,468,006 1,313,098

3,127,795 2,703,116

Application of Funds

Fixed Assets 1,697,425 1,620,454

Investments

Less; provisions 650,885 5,552

Current Assets, Loans & Advances 3,888,373 4,069,967

Less; Current Liabilities & Provisions 3,108,888 2,992,857

Net Current Assets


779,485 1,077,110
3,127,795 2,703,116
TOTAL

ABRIDGED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2009;

(Rs in 000’s)
Particulars 31-03-2009 31-03-2008

INCOME 81,70,742 8,309,525

EXPENDITURE 8,402,223 7,615,436

Profit before extraordinary items 3,48,519 -

Profit before tax expenses 3,48,519 6,95,141

Profit after tax expense 3,02,120 6,20,141

Balance of profit carried to Balance Sheet 7,18,453 5,05,149

EPS (face value Rs 10/ share)

Before considering extraordinary items 5.59 11.97

After considering extraordinary items 5.59 12.00

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2009

(Rs. 000’s)
Particulars Current year Previous year

A. cash flow from Operation Activities 3,48,519 6,94,089

Operating Profit before Working Capital 7,54,266 9,57,185


changes

Cash Generated from Operations


(2,40,832) 2,60,581

Net Cash from Operating Activities


5,09 ,926 3,92,459
B. Cash flow from Investing Activities
(8,29,115) (2,19,607)

C. Cash flow from Financing Activities


1,54,908 (4,18,923)

D. Net Increase in Cash


(1,64,281) 1,31,029