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I, Rahees.k, 3rd
Institute of Management
Thiruvankulam, hereby declare that this project entitled ³A report on the organizational study conducted at Keltron Component Complex Limited, Kannur´ is based on the original study conducted by me and is submitted in partial fulfillment of requirement for the award of the Post Graduate Diploma in Management approved by AICTE.
Date: 17/05/2010 Place:
I wish to express my indebtedness and gratitude to Ms. Remya, Personnel officer, for giving me support to do this internship training in KCCL. I take this opportunity to express our sincere gratitude to our beloved Dean, Prof:Dr. B. Hareendran for giving me an opportunity to do this project. I express my gratitude to our project guide Ms. Manishapillai, who has taken interest in guiding us to complete the project. We also thank all the staff members. Last but not the least; my gratitude is to the almighty for showering me with abundant grace through the entire duration of this training. I believe that the light that God has passed on to me shall be kept alight in all days to come.
Date: 17/05/2010 Place:
TABLE OF CONTENTS
Serial No 1 2 3 4 5 6 CONTENTS Introduction Industry Profile Company Profile Board of Directors Product: Aluminum Electrolyte Capacitor Departments KCCL-Organization Chart Planning Department Marketing Department Manufacturing Department Plant Engineering Department Calibration Department Quality Assurance Department Finance Department Engineering And Design Department Human Resource & Administrating Department Research And Development Electronic Data Processing Department
5-6 7-10 11-13 14 15-16 17 18-19 20-21 22-23 24-28 29-32 33-36 37-41 42-46 47-49 50-56 57-58 59-61
7 8 9 10
Etching & Forming Department SWOT Analysis Findings & Recommendation Conclusion Bibliography
62 63 64 65 66
This Organization Study conducted at Keltron Component Complex Limited, Kannur. The objectives of the study is identified the function of departments in the organization.
1.1 Need and Significance of Study Management principles can be taught in class rooms but managerial skills can be developed in an individual only. When he is trained so. As job are rare and lots of people are equally qualified what makes the student different is his familiarity with corporate practices, processes and this study is also attempt to make the trainee familiar with a public sector manufacturing company. 1.2. Objectives of the Study y y To know the Organizational structure of the Company To know the functions of various Departments such as Marketing, Finance, Production, Human Resource Management, etc. y To gain practical knowledge about the functioning of various departments of the organization. y To understand the works relationship with Technology and Organization by studying work practices.
1.3 Scope of Study The study is intended to provide managerial insight to a management student. If will enable him to take up responsibilities of a manager at ease and provide him more confidence. The scope of the study is confined to a few selected departments and their functions. The trainee may also get a feel about how business executives operate in their work settings.
1.4 Methodology The Project work titled ³An Organization Study´ conducted at KELTRON is based on a descriptive study. The data collection were both from primary and secondary sources The primary source of data collection includes consultation with top management, interviews with employees, informal talks with employees and observations. The secondary
sources of data collection were the annual reports, Departmental reports, catalogues, etc.
1.5 SCHEME OF REPORTING This report is presented in five chapters. The first chapter introduces the study by highlighting the need for the study, the study objectives, methodology and scheme of reporting. The second chapter on industry profile discuss about the Aluminum Electrolyte Capacitors industry. Third chapter describes profile of KeltronConponentComplex Ltd.. The fourth chapter describes the detailed study of different departments in which the trainee had under gone the training.
CHAPTER 2 INDUSTRY PROFILE
An electronic component is any physical entity in an electronic system used to affect the electrons or their associated fields in a desired manner consist with the intended function of the electronic system. Components are generally intended to be connected together, usually by being soldered to a printed circuit board(PCB), to create an electronic circuit with a particular function ( for example an amplifier, radio receiver, or
oscillator). Components may be packed singly or in more complex groups as integrated circuits. Some common electronic components are capacitors, resistors, diodes, transistors etc. "A capacitor is a device capable of storing charge in a circuit, and typically consists of two metal plates separated by an insulator, called a dielectric. Capacitance is directly proportional to the area of the plates and the dielectric constant of the insulator and is inversely proportional to the distance between the plates." Capacitors can store charges from voltage sources for a wide range of time, to be released as needed. The classification of capacitor types by material such as paper, ceramic, or tantalum refers to the insulating dielectric. Electronic capacitors are part of a class of electronic components called passive components. They differ from active components, such as vacuum tubes and transistors, in that they can neither distinguish voltage polarity nor amplify a signal.
Early capacitors were also known as condensers, a term that is still occasionally used today. The term was first used for this purpose by Alessandro Volta in 1782, with
reference to the device¶s ability to store a higher density of electric charge than a normal isolated conductor.
The first capacitor was the Leyden jar, invented independently in the mid-1740s by both Ewald Georg von Kleist and Pieter van Musschenbroek. A glass jar acted as the insulating material. M. Bauer developed the mica capacitor in Germany in 1874.
. The tubular glass capacitor was produced in 1904 by I. Moscicki in the United Kingdom. It was this capacitor that Guglielmo Marconi used in his early experiments with radio communication.
World War I provided an important catalyst for technical change in electronic communications, during which new radio tubes and circuits were developed. The interwar years saw the rapid growth of radio, and, on the eve of World War II, millions of radios were in use worldwide.
During the World War II years, substantial developments were made in communications electronics, radio astronomy, xerography, and radar and computer technology, as well as in miniaturization and the improvement of the energy efficiency of components. The harsh conditions and importance of reliability imposed by the war led to the development of metalcased and metalized paper dielectric capacitors, as well as improvements in ceramic capacitors. The tantalum capacitor was produced in 1956 by D. McLean and F. Power of the United States, after which it became among the most widely, used capacitor types.
Among the most significant developments in electronic components in the postwar period were the transistor and integrated circuit. Transistors are based on solid-state technology, serving as substitutes for the older triode vacuum tube active components, developed by Lee De Forest in 1906. In 1948, Bell Laboratories developed the transistor (whose name derives from transferred resistor), which enabled electronic equipment to be produced in increasingly smaller sizes. The first integrated circuit was produced by Texas Instruments in 1959. This
device made use of transistors and other components mounted on a semiconductor chip to form an entire electronic circuit.
Chip capacitors are surface-mounted to circuit boards, in contrast to traditional capacitors with wire leads. Although chip capacitors are generally higher priced than those with leads, the price gap decreased in the 1990s. Also during this time, chip capacitors came into increasing use, especially in equipment such as portable phones, video cameras, and electronic notebooks, items for which space constraints were a prime consideration. Demand for surface mounting and miniaturization continued in the late 1990s, along with higher capacitance and integrated devices.
World Scenario The worldwide electrical and electronics industry is experiencing phenomenal and remarkable changes these days. The worldwide electronics industry is distinguished by fast technological advances and has grown rapidly than most other industries over the past 30 years.
Globally, during the early 2000s, end-users of passive electronic components like capacitors² namely original equipment manufacturers²were applying continuous pressure on the industry to lower prices. This had a devastating impact on profitability, as many capacitor manufacturers were forced to produce components at or below the cost of production. In addition, the industry was forced to contend with a generally weak economic climate, heightened competition from the likes of Asia, and downturns in leading end markets like telecommunications equipment and computers. These negative conditions led to workforce reductions, consolidation, plant closures, and a reduction in overall capital spending and production capacity.
Factors Governing the Growth of this Industry The key factors governing the growth of electrical and electronics industry are as follows:
Rising and continuous investments in research and development has led to increased productivity and higher-value added electrical and electronics products.
Increased foreign investments have resulted in the accelerated growth in terms of electronics production and exports. Foreign companies are now making huge investments and are installing extensive production capacities in developing countries.
Extends support to several global industries namely medical, telecommunications, industrial and automotive sectors.
Rising incomes and living standards have resulted in the increase in demand of electronics especially consumer electronics products in the world.
This industry is highly fragmented which comprises of many small and medium size enterprises.
Rapid pace of innovation in electronics technology is resulting in a consistent demand for newer and faster products and applications.
INDIAN ELECTRONIC INDUSTRY
The electronic industry in India constitutes just 0.7 % of the global electronic industry. Hence it is miniscule by international comparison. However the demand in the Indian market is growing rapidly and investments are flowing in to augment manufacturing capacity. India however remains a major importer of electronic materials, components and finished equipment amounting to over US$26 Billion in 2009. This is not a desirable situation and local manufacturing has to keep pace with growing local demand.
CHAPTER 3 COMPANY PROFILE
Introduction Keltronwas established as a subsidiary company of Kerala State Electronic Development Corporation Ltd on 8thOctober 1974 by shri. K.P.P. Nambiar, who is the founder of the Organization.Later, on 19th August 1978, the companies started commercialize its production. It was an experiment by Government of Kerala to transform the laid-back, picturesque Kerala State known for its spices, natural beauty, Kathakali and the Onam boat races, to arena for industrial and technological development. That was how Keltron born.
Keltron Component Complex Limited (KCCL) is a Government of Kerala undertaking promoted by Kerala State Electronics Development Corporation Limited. The company is located inthe district ofKannur in Kerala. It commenced its commercial production of Aluminum Electrolyte Capacitors in August 1978 in technical collaboration with N. V Sprague Electromag, Belgium a subsidiary of the world famous Sprague Electric Company of USA.
KCCL markets its products underthe brand name KELTRON . It has agood manufacturing facilitywith sophisticated machines import from Japan and Europe. It has acapability to produce all types of Aluminum Electrolytic Capacitors, which confirm to national and international standards. The manufacturing technologies is upgraded with R&D center of the company has the recognition of the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India. The state Pollution Control Board has certified the company s ecofriendly facility at Kannur. M/S KPMG, USA, have conferred the company s quality system with the ISO-9001 accreditation.
Earlier Keltronhad four unitsoperating in different parts of India. On January 2010 they amalgamated,Keltron Crystals Ltd, Keltron Magnetics Ltd, and Keltron Resistor Ltd in to one single unit known as Keltron Component Complex Ltd.
Electrolyte capacitors are widely used in TV sets, VCR, Radios, Tape recorders, Telephone instruments, Motors, Electronic exchanges, Communication equipments, Defense equipments etc.
The present customers include major Indian companies like BEL, ITI,
Tata Telecom, Onida, Sharp India, Videocon, Crompton Greaves, Kirloskar and other small OEMS serviced through dealer network.
MISSION ³ We aim at maximum satisfaction to our customers by providing goods which meet the requirements. We are committed to achieveour goal with the involvement of employer at all levels´.
VISION ³To re-build Keltron into Rs1000 crores company in five years time ±frame and make it a NAVRATNA of the country´
AWARDS/RECOGNITIONS y National Productivity Award for 1988-89 under large scale electronic components from National Productivity Council, New Delhi. y ELCINA Award 1993 for excellence in Research and Development for work done in the field of forming technology. y Department of Scientific and Industrial Research and Ministry of Science Technology, Development. y ISO-9001 ± 2000 Certification from M/S Intertek - UK Government of India approval for in-house Research and and
BOARD OF DIRECTORS
Mr.T.Balakrishnan, IAS Captain O P Dua
Chairman Managing Director
Dr. InderJit Sigh, IAS
Mr. T O Sooraj, IAS
Mr. CA. Suresh Kumar
Mr.Rajan T Joseph
Mr. T R Chidambaram
Aluminum Electrolytic Capacitor An electrolytic capacitor is a type of capacitor that uses an ionic conducting liquid as one of its plates with a larger capacitance per unit volume than other types. They are valuable in relatively high-current and low-frequency electrical circuits. This is especially the case in power-supply filters, where they store charge needed to moderate output voltage and current fluctuations in rectifier output. They are also widely used as coupling capacitors in circuits where AC should be conducted but DC should not.
Aluminum Electrolyte Capacitor, basically consists of anode foil, cathode foil and condenser tissue paper interleaved and rolled to form cylindrical capacitor section.
The anode and cathode foils are interleaved with paper and wound into a cylinder. During the winding process, aluminum tabs are attached to each foil to provide electrical contract
The complete winding is thenimpregnated with an electrolyte, before being housed in a suitable container, usually aluminum can, and sealed. Before being sleeved and packed, capacitors are first aged. The purpose ofthis stage is to repair anydamage in the oxide layer, and thus reduce the leakage current to very low levels. Damage to the oxide layer can occur due to slitting of the anode foil after forming, attaching thetabs to the anode foils, or minor mechanical damage caused during winding. Normally carried out at the rated top temperature to the capacitor, agencies apply voltage to the device through a current limited supply, process that may take several hours to complete.
Anode foil used in Aluminum Electrolyte capacitors is of high purity 99.98%. The foil is etched to increase thesurface area and formed to the required voltage based on the working voltage. Cathode foil is etched for increasing purity of Aluminum foil. The thickness of foil ranges from 20 microns to 110 microns based on the type of foil (anode or cathode)
Products The company started with manufacturing of axial, radial, can type DC component. Subsequently products were added with in-house development. At present the company manufactures a wide range of Aluminum electrolyte AC and DC capacitors, Motor start capacitors and Motor run capacitors.
KELTRON COMPONENT COMPLEX LIMITED
MRKG MFG-1 MFG-2 MFG-3
PLNG: PLANNING MRKG: MARKETING MFG-1 : MANUFACTURING 1 MFG-2 : MANUFACTURING 2 MFG-3 : MANUFACTURING 3 MFG-4 : MANUFACTURING 4 PE CAL QA FN E&D HRD : PLANT ENGINEERING : CALIBRATION : QUALITY ASSURANCE : FINANCE : ENGINEERING & DESIGN : HUMAN RESOURCE DEPARTMENT
R & D : RESEARCH & DEVELOPMENT EDP E&F : ELECTRONIC DATA PROCESSING : ETCHING & FORMING
In Keltron planning is done in all department on the annual intend from top management, marketing department and planning department will prepare an annual budget based on the marketing trend, demand and price existing in the market. After getting the approval of Managing Director the Annual Budget is send to the marketing department and other proposed departments other than preparing the annual budget the planning department is also engaged in preparing a quarterly and monthly budgets to meet market requirements. They arrange short-list; in which non-availability of material is listed initiative taken by the purchase department is highlighted. Purchase department makes arrangement for providing materials and after receiving materials work order is issued to production department. After inspecting the Raw Material¶s they are given to stores which would be then put in production.
PLANNING DEPARTMENT- ORGANIZATION CHART
DUTIES Planning department has to look after the rework of capacitors, standardization of work and even tool room fabrication. The primary duty of planning department is to reduce wastage from each department, wastage including time, material, finance, motion etc. reducing the congestion in stores by using FIFO method is also taken into
consideration. It keeps production control that is according to the plan and sees to it that cost can be reduced in manufacturing. It also takes into consideration whether men and material are running in full capacity.
SCOPE y y y y y Manufacturing of Aluminum electrolyte capacitors and related production activities. Forming of aluminum foil. Job work for sub-contracted items. Rework of capacitors. Tool room fabrication and miscellaneous job work.
Marketing is one of the
operative functions of management. Marketing is a
human activity directed at satisfying needs and wants through exchange process. It includes all resources and selling activities necessary to direct and facilitate the flow of goods and services from producers to consumers in the process of distribution. The success of a company depends on the acceptability of its products in the market.
MARKETING DEPARTMENT ORGANIZATION CHART
OBJECTIVES y y To fulfill customers needs To increase sales
4 P¶S OF MARKETING MIX As Marketing Department n of every marketing mix i.e.; 4P¶s which are this; other organization here also they focus on the
1. Product 2. Price 3. Place 4. Promotion
Product The product of KCCL is the electrolyte capacitors. These are industrial oriented product
which is acomponent ofelectronic goods like TV, Refrigerator, and Computers etc. Price The price of capacitors are fixed in such a way that is not too high, that customers cannot afford it nor too low that they cannot incur the cost of production. Comparatively the price of capacitors of KCCL high but even then they are able to withstand in the
market because of the good quality. Price is fixed on the basis of the cost, demand and competition.
Place KCCL carriesout their sales through y y Authorized Dealers Direct Sales It has branches in cities namely;
All over India KCCL have dealers network.
Ahmadabad, Bangalore, Calcutta, Delhi, Chennai, Hyderabad, Trivandrum. The company sells the product to authorized dealers who sell it to the retailers which are sold by them to ultimate customers. Dealers are given discounts and the company offers additional discounts in case of quick payment and to regular customers. Company fixes target sales for the dealers and if they succeed in meeting the fixed target they are offered commission at the end of the year. Some of their customers are given discounts on the basis of the turnover which is termed as Turnover discount. KCCL is also engaged in direct sales to the customers in case it¶s a bulk order.
Promotion The product of KCCL is a component which is an industrial product and therefore they need not use any form of advertisement. But they do take part in exhibitionsand conduct seminarsto promote their product. Thus they do not requirehuge investment for sales promotion.
KCCL is the biggest manufacture of Aluminum Electrolyte Capacitors in India. It has state of the art manufacturing facility equipped with latest automatic and semiautomatic production develop machinery and test equipments. It has also types of Aluminum Electrolyte the capability to design and meeting national or
international customer specifications. The company has, for the first time in India, developed the technology for forming of high and low voltage foils in its in-house
forming plant. In fact, KCCL is the only company for manufacturing all types of capacitors like radial, axial capacitors etc. Etched and formed Aluminum foil is a major raw material for the production of electrolytic capacitors. Manufactures are importing this type of Aluminum foils, since the technology for etching and forming of aluminum not available in India. So they import this material from Korea, Taiwan, China and Singapore
MANUFACTURING PROCESS OF ELECTROLYTE CAPACITORS
STICHING AND ROLLING
SLEAVING & HOT SHRINKING
AGEING & TESTING
FINAL QUALITY CONTROL
MAINTANENCE QUALITY CONTROL
Manufacturing process The manufacturing process of KCCL starts with etching and forming of aluminum foil. In KCCL, automatic machines are used. The manufacturing process of KCCL is given below: y Stitching and Winding Aluminum foil of 40m-110m has both anode and cathode foil. Here aluminum oxide is sent for etching and forming. The etched and formed aluminum foil is wound either
with cello tape or glue. Every process is done automatically. Both aluminum and paper are wound together. This is done so that the paper can sink in the chemical and the electrolyte is formed. The paper used here is tissue type. This is later taken into a tank and the chemical is fitted from there. All this is done in an air conditioned room as to
avoid contamination and also to maintain the temperature level within the plant, which is a major requirement. The foil issued here is 3mm-150mm. y Impregnation Aluminum foil wound with paper is then fitted with a rubber bung. Then it is put in a can and it is sealed with glue. To know electrolyte and chemical capacity it is sealed with figures like 2.2/63 HS (smallest), 22/35 HS, 47/25 HS, etc,. The biggest capacitor used here is initial motor start. y Ageing and Testing Ageing is a process through which electric voltage is given to the capacitor. Then it is tested to see whether it is working properly and has the right voltage and there is no short. The sealed coil goes for ageing and then it is tested. If the capacitor is good it is sent for Quality Assurance. If it is tested bad then if re-ageing is possible, then re-ageing is done and it is tested. If it cannot be re-edged, it is rejected. Ageing and testing can be done both automatically and manually the capacitors are put in a trolley and loaded. Voltage is passed. Then it is tested. Sometimes capacitors are tapped. This is manually done for computer mother boards etc; only customer requirements.
After the testing of capacitors it is sent to the Quality Assurance department so that it can be checked for proper functioning in order to get 100% satisfaction from the customer.
Packing Only passed items are packed into multiples of hundreds and sent to finished
goods stores. It may be packed according to customers requirements like tape packing, bulk packing etc.
After putting the coil in the can it is sealed. Then the sealed capacitor is washed with a type of acid is used to remove the stains or dirt on the can.
Stores The finished capacitor is then sent to store, from where it is sold to dealers on
the first come first serve basis.
PLANT ENGIEERING DEPARTMENT
In KCCL, Plant engineering
Department takes care of the maintenance of Keltrone.
Maintenance is that function of manufacturing management that is concerned with the day-to-day problem of keeping the physical plant in good operating condition. The main function of Plant Engineering Department is for maintenance of machines and also for providing controlled environment for production activities, In KCCL, maintenance is carried under 5 heads namely;
y y y y y
Mechanical maintenance Electrical maintenance Electronics maintenance Preventive maintenance Civil maintenance
MAINTANENCE DEPARTMENT ± ORGANIZATION CHART
1) MECHANICAL MAINTENANCE Breakdown maintenance of equipment in case of breakdown of a predominantly mechanical in nature. Adjustment of production machines for ensuring continuous process capability Operation of services equipment like air conditioning, plant air compressors etc. Operation of water utility services, liaison with store to ensure proper inventory control of mechanical space. General administration of the section. Ensure that proper procedures/instructions are communicated to him and see that such procedures instructions are followed. Any other responsibility supplementary or complementary to those mentioned above. Officiate a department head in the absence of HOD 2) ELECTRICAL MAINTENANCE Breakdown maintenance of equipment in case of breakdown of predominantly electrical in nature. Adjustment of production machine ofa personality electrical in nature. Operation and maintenance of electrical utility services. Liaison with stores to ensure proper inventory control of spares electrical.
3) ELECTRONIC MAINTENANCE Breakdown maintenance of equipment in case of breakdown of a predominantly electronics in nature. Adjustment of production machines of a personality electronic in nature. Breakdown maintenance or repair of electronic utility equipment, assessing and testing instruments and calibration of equipments. Liaison with stores to ensure proper inventory control of spares electronics.
4) PREVENTIVE MAINTENANCE Making preventive maintenance plan and schedule. Carry out preventive maintenance of allequipment under the schedule. Commissioning equipment¶s.
5) CIVIL MAINTENANCE Planning andarranging maintenance of civil structure, buildings, roads and such other facility. Preparation of plan and estimates for civil work. Supervision of civil work. Keeping records pertaining to each work including measurement book.
Any other work complementary or supplementary to those mentioned above is specifically assigned by the departmental head.
made using a of instrumental ranging from very simple to
extremely sophisticated. We must have confidence that all those measuring instruments are giving us valid useful data that confidence is provided by Calibration. Calibration is the set of operation of determining the values of errors of measuring devices to traceable standard. The set of operation which establish under specific condition, the relationship between values of represented by a material measure or a reference material and the corresponding values by the standards.
CALIBRATION DEPARTMENT- ORGANIZATION CHART
HEAD OF DEPARTMENT
OFFICER IN CHARGE
OBJECTIVES y To control calibrate at prescribed intervals and maintain inspection measuring test equipments used by Manufacturing Department and Quality Assurance Department so that required measurement capabilities is maintained. y Maintain calibrate records for complete set of instrument. y Evaluation of external sources of calibration for adequate facility and also for traceability to National/International standards.
ELEMEMENTS OF CALIBRATION y y y y y y y y y Adequacy of standards Calibration Traceability Recall system Calibration records Labeling practice Calibration intervals and adjustment techniques Environmental controls Outside calibration source.
CALIBRATION PROCESS Calibration makes sure reading that correct. Various steps make up the whole calibration process for the company. Calibration is used word wide the Head office of the calibration is at Paris. In India theMain Branch is at Delhi. All other calibration departments in companies are said to be the branches of calibration.
In Keltron, the calibration process starts with External calibration. All the meters of Keltron are being calibrated using the different calibration devices. These calibration devices are first calibrated externally from Fluid Control Research Institute, Palakkad and Electronic Regional Test Laboratory (South), Trivandrum. Then all the meters of Keltron are checked with these devices and they give a guarantee period for each meter so that all these meters are recalibrated within this period. In short, they make sure thateach meter gives the accurate readings. The firm makes sure that all the equipments in the company are
calibrated before the guarantee period of the calibrating devices.
At the beginning of every year all the department gives a list of equipments to be calibrated. Based on this list the calibration department prepares a scheduled of when to calibrate the listed equipments are calibrated on the schedule. Every calibrated meter is labeled to make aware the workers about the reading status of the meter.
The meters are labeled as follows: Green- Valid calibration i.e.; cleared for all use. Yellow- cleared for limited use. RED-instruments cannot be used for measurement BLUE ± calibration not required. They maintain record of all the labeled equipments and give the copy of it to the concerned department so that the workers can know what all measurements can be obtained accurately in case the equipments has got a yellow label. Thus calibration department strives to improve product quality which in turn will help to improve the business results.
QUALITY ASSURANCE DEPARTMENT
The Quality Assurance Department (QAD) function includes central examination administration, which has to be within an Organization.
It certifies automatically and free from the influence of production that has been performed in accordance with specific procedure and material or components to meet the preceded specification. KCCL has got a well dominated and implemented quality system.
Organization chart- Quality Assurance Department
Head of Department
OIC/SIC IN PROCESS INSPECTION, FINAL INSPECTION & LIFE TEST OF MB/MS
OIC/SIC FINAL INSPECTION.RADIAL/AX IAL
OIC/SIC RECEVING INSPECTION
IN PROCESS INSPECTION
FINAL INSPECTION RADIAL/AXIAL
RAW MATERIAL COMPOUNDS
This department is primarily concerned with ensuring quality of the quality of the product by way of inspection, which may be categorized as follows:
1. Raw Material Inspection 2. Patrol Inspection 3. Final Inspection
Raw Material Inspection The materials which are imported for production are being inspected and the quality is assured. Some materials require 100% conformance as specified. Those materials that do not give 100% conformance are not accepted because it may adversely affect the quality of the finished products. It is accepted on deviation confirming to the standard fixed by the quality department. After the raw materials are imported it will be checked with the company¶s own standard, if there is major deviation, then at the same time if it can be Utilized under certain conditions without affecting the end requirements, the
materials is cleared as acceptance on condition and is called conditional clearance.
RAW MATERIAL INSPECTION
PASSED [100% CONFIRMING TO SPECIFICATION]
PASSED [100% CONFIRMING TO SPECIFICATION]
PASSED [100% CONFIRMING TO SPECIFICATION]
In Process or Patrol Inspection In KCCL, Quality Assurance continues when material are in Process. Here the inspector goes to the inspection is done to check whether the product after each process satisfies the confirmed promoters. If there is any critical problem, it will be reported the HOD and action will be taken depending upon depending upon the nature of the defect noticed.
Outgoing Inspection It is carried out for the finished goods. Here the inspection starts ageing and testing machine. KCCL produce 500k-600k capacitors per day ± quality controller checks the output by a sample of particular units which is under the hire standards 10673. This is a standards which is issued by the Government of India for all electronic equipments. The products that fulfill the quality level specified are selected for sales. The defects are expressed in percentage level, it will be withdrawn and further rework will be made. In case of capacitors the parameters which is 100% vested by ageing and testing other promoter are checked by sub-section of manufacturing department by method of sampling.
FINAL INSPECTION/ TEST
MANUFACTURING HOT TO QUALITY ASSURANCE
COLLECT SAMPLES IS 10673
INSPECTION & MINOR COSTING
ACCEPTED IS IN ACCEPTED ON DEVIATION
FINISHED GOOD STORE
Finance has been defined as the source of money. It studies the principle and raising, administering and controlling of funds in business. The nature of financial management refers to its functions, scope and objectives. The scope and coverage of financial
management have undergone fundamental changes. In the early year of its evolution it was regarded as a branch of economics relating to the raising of funds. But now, in current literatures pertaining to this growing discipline the scope has changed tremendously so
as to include in addition to the raising of funds, the efficient use of available resources. This concept is now universally accepted and recognized.
Financial management is concerned with planning, organizing, directing and controlling financial activities of an organization. It isconcerned with sources and uses of the fund. It is related with proper managementof fund. The financial functions are:-
y y y y
Investment or long term asset mix- decision Financial or capital mix decision Dividend or profit allocation decision Liquidity of short-term asset mix decision
ORGANIZATION CHART-FINANCE DEPARTMENT
OFFICER IN CHARGE
OFFICER IN CHARGE
OFFICER IN CHARGE
WORK ASSISTANTS CASHIER
Setting various financialperformance standards, modifying these time to time. Preparation of master control budget based on department wise budget, forward by Head of Departments.
y y y y
Monitoring of key financial ratios. Planning and implanting the growth strategy of the organization. Maintenance account, preparation of annual account, annual reports etc. Cost study and output.
WORKING CAPITAL MANAGEMENT
Managing funds are required for providing resources like material, man, machine etc to sustain the operation of the company on a day to day basis. In addition to owns funds, if the company requires additional working capital, the
terms are negotiated with the lending institutions. Agreement is also made with bankers for non-fund assistance like establishment and letter of credit in finance of overseas suppliers, banks guarantee etc.
The company has regularly paid dividend to itsshareholders since 1985-86. The last time it paid a dividend of 10% in year 1993-1994.
The company has efficient external auditors. Moreover there is efficient internal check system also. Besides this statutory auditors appointed by the company law board audit the accounts, records of the company. After completing the audit, copy of the report is sent to the accountant and also presented before the shareholders. If there are any comments from the auditors, shareholders, the company should provide sufficient explanation to these comments. In addition to this ISO audit is also carried out.
y y y y y y y y y y
Cash payment Cash receipt Bank payment voucher Bank receipt Journal voucher Purchase journal Sales journal General ledger Control Office cash
KEEPING ACCOUNTING RECORDS
Files maintained in the finance and accounts department are kept unlocked shelves. Current ledgers, books, subsidiary registers, salary sheets are under the custody of concerned personnel the asset register is kept with the HOD. Rank cash books, journal books, salary records, purchase journal, sales day book and other subsidiary register of previous years are kept in the record room adjacent to the accounts departments. Vouchers pertaining to 8 years are kept in boxes mentioning names of the vouchers and year on the boxes in the record room.
REVENUE ACCOUNTING POLICIES The accounts are prepared under the historical cost of accounting and evaluated on a going concern basis with revenues recognized and expenses accounted. Some of the revenue accounting policies is:
y y y y
Fixed assets and depreciation Inventories Foreign currency transaction Deferred tax
ENGINEERING AND DESIGN DEPARTMENT
For modern products it is useful to document and analyze the design logic. This means starting with the desired product factors and then identifying the necessary characteristics for Raw Material and Process steps, such as engineering. In KCCL, the Engineering and Design Department is concerned with preparing bills of materials, altering materials, giving technical support to the manufactured and making design, according to the order to suit the customer requirements.
ENGINEERING AND DESIGN ± ORGANIZATION CHART
HEAD OF DEPARTMENT (ENGINEERING & DESIGN)
OIC/SIC (ENGINEERING & DESIGN)
OIC : OFFICER -IN- CHARGE SIC : SECTION-IN-CHARGE
OBJECTIVES y y To bring down the product cost by 5% through Engineering and Design. To meet the customers requirement for utmost satisfaction of the customers.
Preparation of bill of materials and design specification for electrolyte capacitors. Preparation of engineering, drawing and design specification and new product introduction.
Prepare cost data.
HUMAN RESOURCE AND ADMINISTRATION
The basic job of management of any business is the effective utilization of available human resource for the achievement of business objectives. The human resource in an organization should be motivated and managed with utmost care to inspire, encourage and impel them to contribute their maximum for the achieve of organizational objectives. They are considered to be the valuable asset because it is people which make other assets move.
In Keltron there is a specialized department known as personnel and administration, which sees to both personnel and administrative functions. The employees experience range from 12 to 25 years. The company has a Human Resource Development program whereby
training classes on the job is given. Key technical personnel are trained by collaborators of suppliers of machinery to oversee on the processing of the capacitor and maintenance of machinery.
ORGANIZATIONAL CHART ± HRD
GENERAL MANAGER (PERSONNEL & ADMINISTRATION)
MANAGER (PERSONNEL & ADMINISTRATION)
RECRUITMENT AND PLACEMENT Recruitment is the process of searching for the prospective candidates for the
employment and motivating them to apply for the same . This process of searching is known as recruitment. In Keltron, policy of recruitment is an ideal one. In Keltroe the source of recruitment is external. Being a public sector company, as and when a vacancy arise the Personnel Department determines the number of employees and notifies the employment exchange and appropriate candidates are given by the exchange. Once an offer to an employee has been extended, accepted then the final stage of
procurement function is conducted. This is called as placement. After selection the employee is put on a six-month probation period. Only afterthis probation period his employments will be regularized. Here, Personnel Department also checks the performance of employees.
TRAINING When a person joins theorganization he/she willbe given induction training for a minimum period of one month. After induction training, the person will be given on-the-job training for a period of one year. Various other training programs are also arranged on the basis of need criteria.
PERFORMANCE APPRAISAL Performance of each executive and employees is evaluated through annual appraisal
forms. In case of non-executives performance appraisal forms are to be filled at the time of promotion of workman. Promotion is given on the basis of the scores of the appraisal forms.
WAGES AND SALARY Keltron arrived at memorandum of settlement on 15 April 1996; in respect of wages, allowances and fringe benefits; based on the approval of Government of Kerala, KSEDC and Trade Unions. In MOS, the terms and conditions areapplicable only forworkman. It also contains the rateof fixed DA. Forother staffemployees there are other MOS.
ADMINISTRATION OF STANDING ORDERS In Keltron, Standing Orders Act 1946 is applicable to workmen inthe industrial employment. This StandingOrder defines company management, workmen, trainee, leave, salary etc. It is
divided into different chapters namely service, workmen classification address and other particulars, probation, seniority, temporary appointment, transfer, recognition, promotion, salary, increment, leave etc.
ALLOWANCES AND BENEFITS y Variable Dearness Allowances It is the allowances given tothe ordinary workers every month. It varies every three months. It is fixed as per All India Consumer Price Index, 1960 series. According to cost of living index VDA is given at 1% Basic Pay
House Rent Allowances This is an allowance given to an employee by his employer in order to compensate the high rates prevailing in big cities. Keltron provides 10% of Basic Pay.
Conveyance Allowance It is the allowances used to meet conveyance for performing office duties. Workmen get Rs.25 as CA.
Shift Allowances The general shift is from 8:30am-4:30pm, and other three shifts are from 7:00am3:00pm, 3:00pm-11:00pm, and 11:00pm-7:00am the employees who are in the
other three shifts apart from general shift are given compensation known as shift allowances being Rs.5, Rs.10, and Rs.25.
Food Subsistence Allowance There is reduction in the price of food by the company to the employees. The employees should give only one-fourth of the cost of the food. Daily a cup oftea is freeto all employees.
Medical Reimbursement All employees are eligible for medical reimbursement scheme. This scheme also includes family members. The amount of benefit is given on the term of service of the employees.
PROVIDENT FUND It is thefund that is provided in the future. The fund is credited by a part of the amount deducted from the salary of employees every month at ascertain rate. When the retires from the company, he/she receives this amount as lumsum along with interest on it. In Keltron 12% ofthe salary is given as PF. The salary being inclusive of allowances.
BONUS Yearly bonus is given to employees at a minimum rate of 8.35% on salary up to Rs.3500/month. In this case salary includes Basicpay and Dearness Allowance. Festival
Allowances should be given toemployees atthe time of festivals. Marriage Allowances, Home loan, Vehicle Loan are also provided. Salary is either given directly to employees or deposited in bank as per employee¶s instructions.
BLOOD DONATION FORUM Keltron is having blood donation forum with assistance from employees for donating the blood to the needy people. The IT Department helps in checking out blood group. The management has also decided to allow one day leave for the blood donor.
HOSPITALIZATION LEAVE Workmen not coming under the preview of ESI scheme will be permitted
hospitalization leave to an extant of 30 days/ 3 years in case of government hospital.
TIME KEEPING Every employee is given a separate card with a specific number having four digits. The workers, employees, supervisors and executives have different numbers. A Muster Role is kept bythe organization. Electronic Punching System is used in Keltron to record the time of entry and exit of each employee. In second half latecoming is not allowed. Attendance is made animportant element of employee performance. An employee who is absent foe more than a fixed number of days, is alerted and if required necessary action is taken.
WELEFARE MEASURES y y y y y y Housing loans Reading Room Facility for sitting First aid equipment Canteen Library
GRIEVANCE FACILITY When there is a grievance on the employee he/she has to inform his immediate verbally. If the grievance is not redressed he/she can submit the grievance in writing to the Head of the Department. If he/she grievance is not settled the matter can be taken to the Managing Director whose decision will be final.
RESEARCH & DEVELOPMENT DEPARTMENT
The department of Scientific and Industrial Research, Ministry
of Science and
Technology, Government of India has approved the in-house research and development activities of the company.
RESEARCH AND DEVELOPMENT ± ORGANIZATION CHART
HEAD OF DEPARTMENT
SIC PRODUCTION DEVELOPMENT
SIC: SECTION- IN- CHARGE Sr. : SENIOR
FUNCTIONS The main functions of Research and Department are as below: y y y y Developing high, medium and low voltage forming Developing technology for editing high voltage Aluminum foil Updating the manufacturing technology of electrolytic capacitors Developing electrolyte required for the manufacturing of electrolyte capacitors. Research and Development plays a crucial role in electronic industry. Innovation and quality limited are major concerns ofthis department. If the company has to survive in the present highly competitive market R&D has to come out with innovative product and constant up gradation of technology. KCCL allocates 0.5% to 1% turnover for R&D purpose. Research is going on the development of technology for the manufacturing of electrolyte indigenously. The R&D is trying for the up gradation of technology by reducing the size of the component par with the Japanese product. The department is trying for the vertical integration of the manufacturing process.
ELECTRONIC DATA PROCESSING DEPARTMENT
Computer has become an essential part of organizational proceeding because of the technology and the data to be processed. Information processing is amajor societal activity. Data Electronic Data Processing helps in inter-organizational electronic exchange of business documents in a standard format. Computer data processing has prevailed data like Finance, Personnel, Marketing etc.
ELECTRONIC DATA PROCESSING- ORGANIZATION CHART
EDP ASSISTANT MANAGER
In KCCL, the EDP department was started on 1988 with self centered computer. In 1994, the company installed Local Area Network(LAN) with 15 terminals. This department can process various typesof information such as-
y y y y y y
Materials requirement Pay-roll Personnel information system Raw Material inventory Finance Finished goods and dispatch
The scope of EDP in an organization is limited but the data that is obtained, the cost of procuring, processing and storing the data and value of information to the users. The management plan is to install a separate system to each department by connecting it to central EDP unit. Through EDP department the company has achieved lots of new facilities and saving time with the help of new methods, keeping goods in stores and so on.
RESPONSIBILITY OF HOD y y y Entering the data Develop program for various application required by other department head. Compile and present the data to various departments for analysis and control in prescribed format.
OPERATING SYSTEM y y FOX PRO FOX BASE
FUNCTIONS OF EDP y y y Data acquisition Data processing MIS interface which helps to generate a lot of information based on data.
ETCHING AND FORMING DEPARTMENT
is also into etching and forming of aluminum foil as part of diversification,
modernization and expansion plant.
FORMING OF ALUMINUM FOIL Etching and formed aluminum foils are the major raw materials for the production of electrolytic capacitors. The manufactures of electrolytic capacitors have been importing this item since the technology for etching and forming of aluminum foil is not available in India. The company for the first time in India developed the technology for forming of high voltage and low voltage foil in its in-house forming plant. The plant was designed and developed by the fabricated locally. engineer of the company and forming machine is
ETCHING PROJECT Etching technology for etching of aluminum foil is yet to establish in India. The DOE approved the research project for 3 years costing Rs 40 lakhs for development of high voltage etching technology in the company in-house plant. The company has already developed indigenously the technology for the etching of low and medium gain capacitors.
The strength of Keltron is ateam of experienced technocrats withsmart supporting staffs. It is the only manufacturer of capacitors in Kerala and its quality is known worldwide.
The weakness is the irregular performance of the organization due to the periodical changes in government policies especially the imports policy. In public sector
organizations diversification is very slow unlike the private sector, which is also a weakness. Also the machines aregetting obsolete. Also in government organizations recruitment is a problem. The opportunities are as the industry is in the electronic field diversification of products opens ample opportunities for the organization.
The threats are, globalization witnesses dumping of cheap electronic products in India, which is a threat of Keltron as it is producing capacitors of a higher value.
FINDINGS AND RECOMMENDATIONS
FINDINGS y Keltronproduces high quality products but at a comparatively higher price than its competitors. y As keltron imports Raw material, import cost is high leading to a loss as the sales price is not able to cover the loss. y y Globalization has had a bad effect on the company. Government control has also a bad effect on the company, being there has been no recruitment since many years. y Even though Keltron has short comings, being an electronic goods manufacturer it has every chance to improve.
RECOMMENDATIONS y y y y The companyshould try to use its production capacity to the maximum.
The company should try to sell it productat competitive price. Reduction of cost is a must for the company to survive. There is a vast scope ifthe company focus on the IC capacitors since the present demand is high and is expected to be so in the coming years.
A nation¶s future and its ability to compute in the global market depend greatly on how it generates new ideas and innovations in science and technology. Keltron has initiated steps to create a knowledge center that would catalyze the process of knowledge assimilation as well its dispensation. Keltron is one of the leading capacitors
manufacturing companies in Kerala. It is an ISO 9001 certified functioning company. It has always been able to provide high quality products. It also has a super Research and Design section that help in providing capacitors according to the needs of the customers.
It has a committed set of technocrats who work tirelessly for the accomplishment of the goals of the company. The company provides employment for the handicapped people giving them high respect. It has a very eco-friendly surrounding helping its employees to keep a cool atmosphere.
Keltron after its bad play has found a stage where it can make profits. As an electronic goods manufacturer, it has a bright future ahead, a future belonging to innovation and simplicity of electronics.
Production and Operation Management K.Aswathappa and k. ShridharaBhat
Marketing Management Philip Kotler
Human Resource Management P.Subbarao
Financial Management I.M.Pandey
Catalogues, Brochures, Annual Reports of Keltrone
Websites www.keltrone .org.com www.wikipedia.com www.google.com
Particulars Liabilities Share capital Secured loan Unsecured loan Current liability Provision Total 2004 242.45 960.73 1257.02 837.85 252.83 3550.88 2005 242.5 950.7 1351.81 679.48 299.19 3523.63 Amount in Lakhs 2006 553.45 990.36 1063.87 729.44 340.15 3677.27 2007 553.45 876.26 1105.77 791.54 369.07 3696.09 2008 553.45 991.74 1116.42 737.53 392.29 3791.43
Assets Fixed Assets WIPC Development expenses Inventories Debtors Cash and Bank Balance Loan and advances Profit and loss Account Total
2004 307.34 2.99 55.69
2005 257.6 1.34 21.37
2006 254.76 21.37
2007 225.88 0.71 21.37
2008 200.99 1.15 21.37
1536.39 981.88 125.72
1481.44 714.24 110.4
1404.53 649.92 125.89
1288.73 599.2 82.67
1371.79 552.03 280.14
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