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An Organization Study at

Autokast LTD
Submitted in partial fulfillment for the requirement for the award of the



Submitted by
Register No:

Under the guidance of

Faculty Member



I declare that the project report entitled An organization study on Autokast

LTD Submitted by me for the award of Master of Business Administration of M.G
University is my own work. The report has not been submitted for the award of any
other degree of this university or any university.

Place: Aluva


First of all I wish to express my deep gratitude and thanks to God who helped
us in completing the organization study successfully.
I shall remain grateful to. Mr.:BSS IT MISSION
THYACDU for his amble guidance and encouragement for completing the
organization study. I am also extremely grateful to faculty member for their valuable
suggestions and advice regarding this work. I also express my profound gratitude to
project guide .,Sr. Manager, HRM for his valuable guidance and
timely advice and well-wishers for Encouragement given to us during the course of
the project. It is my pleasure to express a deep sense of grateful to
Sr. Manager, Safety & Environment Department & MIS without his
untiring efforts and tremendous background information this work would not have
materialized. I express my sincere
Thanks to all the staff of Autokast LTD for their co-operation during my
study in the company. Last but not least we thank my parents and for all their moral
support and help, they Had given to me.


Industry Profile
Company Profile
Product Profile
Customer Profile
Human Resource department
Finance department
Production department
Planning department
Commercial department
Purchase department
Marketing department
Quality Control department
Research and Development department
Store department
Safety department
SWOT Analysis
Suggestions & Recommendations


O r g a n i z a t i o n s t u d y d e a l s w i t h c r i t i c a l e v a l u a t i o n a n d a n a l ys i s





particular firm. It gives a clear idea about the functions and

p r a c t i c e o f v a r i o u s department heads and operational efficiency of the
department as a whole. This particular study gives a clear idea about the
functions, practices and the delegation of authority of Autokast


Ltd, Aluva. With this, study gives an overview about the practical situations,
which a company is functioning According to Allen Kelly an organization is the
process of




of w o r k t o b e p e r f o r m e d d e f i n i n g a n d d e l e g a t i o n o f a u t h o r i t i e s a n d
responsibility ande s t a b l i s h i n g t h e r e l a t i o n s h i p o f p e o p l e e f f i c
i e n t l y t o w a r d s t h e a c h i e v e m e n t o f organizational goals. So it is
very much important to study the organization structure. The organization
study will help us to reveal the how things are coordinated in real time
situations. The personnel function is really all about motivation. It is
agreed that


i n d i v i d u a l s a r e m o t i v a t e d t o p e r f o r m e f f e c t i v e l y, t h e y m a y
n o t a c h i e v e t h e l e v e l o f performance that is desired to them. Managerial




their subordinates to release their



potential more


and thereby permit the desired goals of the organization and the needs of
employees to be achieved. The purpose of motivation is to create conditions which
people are willing to work with zeal, initiative, interest and enthusiasm so that the
goals of an organization are achieved effectively. L e a d e r s h i p i s m e a n s o f
directing. It is the ability to influence a group towards the
achievement of goals. It is the human factor that helps a group identify where it is
going and then motivate it towards its goals. Without leadership, an organization
would be only a confusion of the people and machines. Training makes a very
important contribution to the development of the organizations Human
Resources and hence to the achievement of its aims and objectives. To achieve its

purpose, training needs to be effectively managed so that the right people,

in the format right time and at the right costs.


To get an organizational exposure.
To understand the organizational structure.
To understand the functioning of each and every department
To understand the actual functioning of the organization
To understand the basic of depart mentation
To study about the employee employer relationship
To make an evaluation of the performance or the organization
To make a SWOT analysis

The study was conducted using the method of interview and observation and
also made use of the primary and secondary data

Primary data
Primary data is collected through observation or through direct communication
with reoidentsin one form or another or through personal interviews.
The formal and informal interviews with Managers and Department heads,
Direct observation

Secondary data
Secondary data are those which have been collected by someone else and
which have already been passed through statistical process. The secondary data were
collected from.

Company records
Annual report.


The study restricted to the functioning of, Autokast

LTD. The study gives a

detailed knowledge about the different functional areas like finance, marketing,
operations and their functions
The study covers the various aspects of Autokast

LTD the different

functioning of Autokast LTD .The main topic include the following

Profile of the Autokast LTD industry
Company profile
Product profile
Functioning of various departments
Findings, suggestions
SWOT analysis


The study was limited, because the time period allotted was not sufficient to
conduct a thorough study on the functioning of the organization. The employee of the
various departments was not able to spend enough time in explaining the functions of
their department, as it affected their work schedule. Respondents were reluctant to
reveal complete details. This lack of knowledge of the respondents and the bias of
them has acted as a hindrance to the study.


Indias casting industry 19.2 billion by 2016

The industry is making a contribution of Rs 7,000 per ton produced to the national
exchequer by way of excise and other levies. The sector exports touched $215 million
in 2010/11The year 2011 augured well for the Indian foundry industry as it has been
acknowledged as the worlds second largest producer of castings (7.4 million tons per
annum - mtpa) based on tonnage in the year 2009.
They were placed second only to China (35 mtpa). The tempo was maintained
in the year 2010 as well. The large gap between India and China, along with the fact
that the foundry industry is not able to keep up with local demand both in terms of
quantity and quality have compelled them to go in for a detailed analysis of the sector.
The compounding factor is the visible impasse in the investments in the
foundry sector, especially in comparison to the planned investment in the user
industry, that is, auto and auto parts.
This aspect warrants detailed examination and study. Towards that direction,
the following content describes the present status of the sector and the issues that are
facing this industry. sector producing 80.3 million tons. The global production had a
roller coaster ride during the period 2008 to 2010 93.5, 80.34, 83.55 mmt in 2008,
2009 and 2010 respectively. It is expected to bounce back to 93.5 mmt by 2015/6.
Global scenario
It is estimated that in 2009 there were 46,906 foundries globally in the organised
Important findings of diagnostics study
The pos i t ion of foundr ies i s of conflicting importance among the manufacturing
industries. The castings alone account only for 0.31 per cent of the world GNP and 5
per cent of the world metal production. Thus foundries do not rule the world economy.
But as main inputs into nearly all industrial products and daily life, this casting
industry is indispensable.
A major happening in the global scenario is the shift and moving of manufacturing
bases from developed countries (Europe and US) to third world countries especially in
Asia. Also China, the number one producer in the world, is now focusing on domestic
demand created by its recent 1.5 trillion U.S. dollar investment in the infrastructure
development. This temporary diversion of Chinese output has created a vacuum in the
international market to be taken up by upcoming foundry producers like Mexico,
Turkey, Poland, Czech Republic, and Russia, apart from India,
Indian scenario

India has 4,600 foundry units, 80 per cent of them in the SME sector. Annual
production is 7.4 million tons, approximately valued at $8 billion. The sector employs
0.5 million people directly and an additional 1.5 million people indirectly.
The industry is making a contribution of Rs 7,000 per ton produced to the national
exchequer by way of excise and other levies. The sector exports touched $215 million
in 2010/11. The manufacturing units are located in 12 identified and recognised
clusters and in 20 other clusters.
Projected market size
While there is a growth expected in the auto-sector and the casting sector alike, the
domestic market is set to surge at least three times by 2016. The auto sector alone
should go up to $10 billion by 2016 and the casting industry is projected to be a $19.2
billion industry by 2016.
The global growth rate for castings follows approximately twice the global growth
rate in GDP in absolute terms. So apart from the domestic demand, Indias exports are
to go up to $3 billion with a 20 per cent growth in direct exports.
Projected demand-supply gap
While there is a clear picture of demand side, the supply side is not prepared to make
pro rata investments to take up the opportunity arising out of growth.
Even assuming that the past growth rate would continue, there will be a large demandsupply gap in excess of 11 million TPA by year 2016.
Diagnostic study of foundry sector
The data collected (from the 325 units and 100 personal interviews) are analysed with
a diagnostic tree and the key findings based on them are summarised in the table
Determination of level of foundry
The industry has five distinct levels of units based on the size and sophistication each
having its own dynamics of growth and plans. The market has also has four tiers and
each level of unit has found its own market segment.
The foundries and markets are nicely dovetailed to each other in terms of price. But
there is a disparity in terms of quality and quantity between the market expectation
and the supplies.
Project Supply / Demand Gap for Auto Casting


Established in 1984, Autokast Ltd is fully equipped to manufacture all kinds of

Ferrous Castings weighing from 20 kg to 8000 Kg single piece. The present annual
production capacity is 6000 Metric Tons. Autokast produces and markets different grades of
Grey Iron and SG Iron Castings for the domestic and international markets. In fact Autokast
can produce Quality Castings in all grades of Grey Iron and SG Iron. An expansion proposal
Range of Alloys manufactured at present include FG-200 to FG-300, SG-400/12, SG500/7, GGG.40.3
An ISO 9001-2008 Company Autokast has different production lines each of which caters to
different market segments


To become the number one supplier of Orthopedics s market in India by

ensuring customer satisfaction of its product and services and continuous

To become the pioneers through operational effectiveness and
customer satisfaction.

Quality Policy
AUTOKAST and its employees are committed to develop, manufacture and
marketing of House Service Energy Meters and Motor Control Gears ensuring
customer satisfaction of the products and services through continual improvement of
the effectiveness of its QMS achieved by setting and reviewing quality objectives.

Quality Objective
AUTOKAST shall establish quality objectives at relevant functional levels
which will bring continual improvement in the functions and thereby in the
organization. The quality objectives focus on strategic advantage to the department as
well as performance improvement. The quality objectives established are realistic,
quantifiable and shall set suitable action plans. Also the management will assign

responsibilities to the concerned managers for achieving the objectives as targeted in

the MPRM.


Discharge Head

Used for submersible pumps

Material ASTM A48 CLASS 30
Weight : 208 Kg

Discarge Head 10-inches

Used for submersible pumps

Material ASTM A48 CLASS 30
Weight : 230 Kg

Main Gear Case

Used for hand tiller

Material FG 260 IS:210
Weight : 18 Kg
Valve Cover

Used for fluid controls

Material FG 260 IS:210
Weight : 9Kg.

N8 Discharge Head

Used for submersible pumps

Material ASTM A48 CLASS 30
Weight : 150 Kg

Used for submersible pumps

Material ASTM A48 CLASS 30
Weight: 150 Kg

Valve Body

Used for fluid controls

Material FG 220 IS:210
Weight : 40 Kg
Cylinder Frame

Used for hand tiller

Material FG 260 IS:210
Weight : 40 K

Ash Vessel

Used for pneumatic transport

Material SG IRON 400 / 12

Weight : 680 Kg.

Suction Case

Used for submersible pumps

Material Cast iron class 30
Weight : 65 Kg

Carter Housing

Used for tractors

Material FG 220 IS:210
Weight : 82 Kg
Fly Wheel Housing



Clavicle Brace

Fractures of clavicle bone that do not preset server neurovascular disturbance of

require surgery to achieve stabilization
Use to immobilize, stabilize and align clavicle fractures in the correct position
For postural correction due to habitual wrong standing / sitting condition
Helps in curing the problem of stooping shoulder and hump back
Use as a post-operative brace
Constructed from Hypo-allergic soft cotton stockinette covered PU foam ensure no
under arm rash
Thick pad at back helps preventing irritation
Applied as figure 8 shaped bandages with straps and buckles
ELBOW Crutches (Alum.)

Patient with bi-lateral limb orthosis

Cerebral palsy patient
Better support and stability for elderly patients
Amputees using artificial limbs
Made of Aluminum (anodized) tube with telescopic height adjustment
Total forearm support with PU lined etha-foam
Designed as per bio-mechanical principle for proper weight distribution
Plastic sleeves to reduce the friction between upper and lower tube
Suction rubber tip for better grip on any surface

Aux. Crutches Iron

Made of Iron (epoxyder power coated) tube with height adjustment

Moulded axilla pad for better comfort and cushioning effect



Patient with bi-lateral limb orthosis, patient with shortening of leg
Uni-lateral amputees
Back Rest Adjustable

Used to keep patient sitting upright on the bed or on floor level

Easy to adjust to various angles
Made of steel framed and sheet inside the frame duly power coated finish
Adjustable on many desirable positions
Can be used under the mattress of any size bed
Framed made of round pipe and comfort cushion mat, sturdy enough tested up to
weight of 150 kgs patient
Can be folded portable for carrying

Walker Folding Adjustable (Iron)

Patient with bi-lateral limb orthosis

Better support and stability for elderly patients
Amputees using artificial limbs
Temporary ambulation with plaster casts
Patients with shortening of leg
Uni-lateral amputees
Made of Iron (epoxyder power coated) tube with telescopic height adjustment
Height adjusts to 1 increments from 30-35 to accommodate users 52-62
Weight capacity up to 110 kgs distribution
Available in either plain or with front castor
Tennis Elbow Support (with Strap)

Commonly used for tennis/golf elbow problem

Elbow wrap provides warmth and support to your elbow during sprains and strains
Provides support to the injured elbow area
The pressure applied by the elbow wrap reduces the pain and heals faster
Minimizes the risk of future injuries
Made from 100Percent knitted cotton material



Human Resource department

Finance department
Production department
Planning department
Commercial department
Purchase department
Marketing department
Quality Control department
Research and Development department
Store department
Safety department


Human Resource Department is concerned with the peoples dimension in the

organization. Here in Autokast , Personnel officer is the head of Human Resource
Department Under him there is the Personnel Office, Time Office, and an
Establishment Section.

Personnel Office
The Personnel Office deals with recruitment. Wage administration, promotion
and industrial relations, disciplinary actions etc. The employees are appointed through
Pecan employment exchanges. The additional employees required are taken as
apprentice or on contract basis. Selected persons could get 6 months training
efficiency in concerned on the supreme quality while selecting managerial staffs.
Presently there are145 permanent employees including the managers and engineers.
Out of which 131employees are presently working and the rest 14 are on deputation
and on long leave. The temporary posts consist of more than 100 apprentices and
contract based workers. Contract based workers consist of former employees who
took VRS from the company and external persons who are expert in this field. The

peoples recruited could get training and also various seminars and classes are

To recruit right kind of persons for the right job at the right time.
To arrange for training programmers.
To evaluate performance of the employees.
To the handle the grievances of the employees.
To provide welfare facilities to the employees.
Provide and maintain safety measures.

Formulating policies
Statutory Labor Welfare Facilities provided (Personnel Office) in AUTOKAST

Canteen Facility
The Company provided a canteen for its members. Here foods are provided at a
rate of Rs 8 per day for permanent employees. Working time of canteen is 8 hours.

Rest Rooms & Lunch Rooms

Adequate suitable rest rooms and lunch rooms (with provisions for drinking
water) where workers can eat their meals brought by them are provided

Facilities for Sitting

Company offers very good sitting facilities for employees in their working spot

Medical Facility
The company arranges medical checkups for all employees once in a year.
Health data cards are then issued to all the employees. The medical facilities are
provided to employees as well as his/her family members.

Risk Allowance
When an employee meets with an accident, during employment for the
disablement compensation is paid as per the rules of the Workmen Compensation Act.
In addition to the AUTOKAST allows an excreta payment of loss of wages i.e., 50%
of the (basis DA) due to such accident.

Drinking Water Facility

An effective arrangement of drinking water for the workers in each section or
department is available. Also arrangements are made for cold drinking water.

Recreational Facility
Recreational club is organized in the company premises and Rs 10/- per month
are revised from each employees.
A well functioned time keeping system is used by AUTOKAST Ltd for
proper time keeping. For this purpose an electronic punching system is maintained by
the Time Office.

Statutory Labor Welfare Facilities Provided (Time Office)

Working Hour
a) First Shift6.30 am to 2.30 pm
b) Second shift2.30 pm to 10.30 pm
c) Third Shift10.30 pm to 6.30 am
d) General Shift8.30 am to 5 pm

Overtime Allowance
Overtime will be paid at double the normal wages. (Basic + DA) to all the
eligible staff and workers for those who are engaged in overtime

Leave Facilities
a)Casual Leave-15 days in a year b)Earned Leave-30 days in a year c)Medical
Leave-7 days

Conveyance Allowance
Officers who have put in a minimum of 15 days attendance in a month will be
eligible for getting an conveyance allowance amount of Rs 400/-

First aid Appliances

First aid boxes or cupboards equipped with the prescribed contents is provided
and maintained in AUTOKAST . This is readily accessible during all working hours.

Establishment Section
All the wages, salary, administration and labor welfare facilities are controlled
by establishment section in AUTOKAST .

Statutory Labor Welfare Facilities Provided (Establishment Section)

in UEI

Wages and Salaries

To provide wages and salaries to the employees

The payment of gratuity act 1972 has been amended by the payment of gratuity
(amendment) act 1987. This came into force from 01-10-1987. Maximum salary taken
will be Rs 3500 for gratuity calculation. In the amendment act of 1987, the maximum
amount of gratuity payable to the employees will be Rs 3.5 lakhs. It is given for good
faithful service and efficiently rendered to whole time employees of the company.

The employee of the AUTOKAST covered by the ESI Act and contribution
is deducted from the employees salary since 01-11-1992. Employees whose salary
does not exceedRs10000/- per month are covered under this act. When employees are
registered with ESI, they are entitled to get the following benefits from ESI:-

Sickness Benefit
7 days full pay or 14 days half pay sick leave can be availed by the employees
at any time. If more than 30 days leave is required, medical certificate from an
authorized medical attendant should be produced.

Disablement Benefit
An injured person is given free medical treatment and all the expenses incurred
by him. The total expense in connection with the treatment will be reimbursed.

Dependent Benefit
Legal heirs of the employee get the dependent benefit after his death. Main
dependent are job and compensation.

Maternity Benefit
Women employees shall be allowed maternity leave with full pay for 90 days
after the date of confinement. In addition, one month leave with wages is also allowed
to the employee who suffers diseases arising out of delivery.

Funeral Benefit
For the funeral of employees, the funeral benefit provided is Rs 1000/-

Provident Fund
According to employees Provident Fund Act 1952, the employees of the
company are entitled to contribute a certain percentage of salary or wages to this fund.
The rules followed in AUTOKAST are known as Employees Provident- Fund
Rules. The fund shall deem to have been established on and from 16th
February 1956. A worker is eligible to get Piffle he had completed continuous
six months of regular service or 120 days during the period of 12 months. Under this
scheme, repayable loans are available to employees in liberal terms. As the scheme is
recognized, employees get benefit in income tax also.

Bonus is paid in accordance with the guidelines issued by the government from
time to time. An employee whose salary is less than Rs 2500/- per month is eligible to
get bonus. 8.33% of the total salary is the minimum bonus to be paid.

House Rent Allowance

House rent allowances are allowed at the following rates.

A) Salary less than Rs 2500/- is eligible to get HRA = RS 145/-

B) Salary less than Rs 3000/- is eligible to get HRA = RS 165/-

C) Salary above Rs 3000/- is eligible to get HRA = RS 185/-Uniform


Uniform allowance
Provided to workers is Rs 525/-, once in 2 years.

Footwear Allowance
Footwear allowance is provided to the workers in the spot welding shop, paint
shop, mechanical maintenance shop etc. is Rs 425/- in every 2 years


Finance refers to money or funds available to a firm. A business needs at every

step to start a business, to operate it and to expand or modernize its operations.
Finance is required to bring a business into existence, to keep it alive and to see it
growing. The management of finance is essential for the success of the business.
Finance manager is the head of the finance department. He looks after the budget,
finance posting and audits of accounts. The senior officer accounts takes charge to
look into the day today affairs of the financial of the company. The senior officer
establishment deals with calculating employees wages provide provident fund, ESI
etc. The cost section prepares cost sheet and evaluate job card. There is an internal
audit section that deals with verification of accounts.
Ltd has an initial capital amount to 4
c r o r e s . I t s products are sold to its main customer KSEB. It also has other domestic

AUTOKAST Ltd has to pay the following taxes:Income tax.
Sales tax.
Excise duty.
Educational cess.

The sales tax charged per meter in Kerala is at the rate of 12.5%, whereas, if
sold to other states outside Kerala, the rate is only 4% per meter (i.e., Central Sales
tax). Educational cess is 2% on the excise duty. Presently, the excise duty is 16% on
one meter and the educational cess 2% of the 16%.

Job Card:
It is used to calculate the quality of products individual production time. The
important registers maintained by the finance are given below:
Purpose Journal.
Sales Journal.

Sections of Finance Departments:

The various sections under finance department are:

Book and Budget.

Priced Stores Ledger.

Book and Budgets:

Collection of accounts from different sections.
Preparation of trial balance and final accounts.
Coordination with auditors.
Helps statutory auditor.

Invoice generation.
Debtors ledger.

Price Store Ledger:

This section is responsible for maintaining accounts for the stores in monitory

Each product is having a separate section. It sets the cost of that which issued
by commercial group to add profit margin to set the price.

This section is responsible for cash disbursements and payment. It handles all
the payment said to the employees.

Medical reimbursement

Provident Fund


Loans and advances etc.

Bills payable:
This section handles the payment to be made to the suppliers once the SRV
(Store Receipt Vouchers), PO (Purchase order) and invoice are received, cross
verification of the PO terms, quality and quantity assurance with the SRV and invoice.
Once all the claims are found satisfactory, the payment is issued as per the terms.

Other Important Functions

Payment to establishment

Payment to suppliers
Indigenous Purchase
Important Purchase (Purchase, Bills)

Terms of payment for purchase are

Letter of credit (L/C)
Advance (DD)
Cash and delivery (COD)
Site Draft (SD) (If suppliers are not familiar)

Service Bills
This section maintain bills for payment of
Factory service
Maintance (Civil and mechanical)

Internal Audit
The main function of internal audit are
Fault recognition
Suggestion for improvement
Assisting working level people
Internal audit conducts site audit, once in a year.

Structure of Production Department

Casting expertise, that has led leading name in key industries - automobiles, power
and cement plants, windmills, machine tools and earth moving turn to Autokast. Time
and every possible type of casting. Casting in Grey iron, steel and S.G. iron, with
precise dimensional control are Autokast's speciality. One of the few foundries which
can cast such a wide range, meeting, national and international specifications. Thanks
to our comprehensive range of manufacturing and quality control equipment. Handmoulding in a modern work centre with mechanized sand reconditioning / shake out
system. Casting up to a maximum piece weight of 8 Metric are produced.
BMD 'Air - impulse' High pressure Moulding SystemThe largest of its kind in South Asia - is set up in the country in autokast for the first
time. Air impulse' technology for sand compaction is the latest in the field and
autokast has opted for this in keeping with the trend of technological changes.
The high pressure moulding Line can produce Grey iron and S.G. iron in casting
which are repetitive in nature and required in large numbers.
The system consists of integrated sand Plant Air impulse moulding unit with pattern
shuttle arrangement , automatic mould closing /cooling lines/punch out station/
integrated shake outand sand recycling system
The entire mechanism is controlled through a Computerized control panel. This
system can produce 80 moulds per hour in box size of 750 x 750 x 400/350
mm and is the best suited for mass production of precision castings required for
automobile and engineering industries.
This High-Pressure System is supported by modern Core Shooters from M/s.

West Germany, using Hot Box, Cold Box and Shell processes and equipped
with Core Handling and Transport System. H25 and H40 machines are employed for
Cold Box as well as Hot Box processes, while U190 and U200 are for Shell process
In addition to the above facilities, Autokast has an advanced machine-moulding
centre supported by Sand Plant and Mould Handling System. The Moulding machines
accomodate mould box sizes 1190mm x 790mm x 400/350. Autokast is also equipped
with a modern Pattern Shop, Fettling Section and Heat Treatment facilities.
Autokast's expertise in Hand-moulding, Machine-moulding and High-pressure
moulding ensures a virtually unlimited range of castings. Small castings are finished
to minute precision and, larger castings are finished as close to perfection as possible.
At Autokast, we have our sternest critics working for us in our quality control
department. Quality checks are conducted at every stage. The quality control
department has full-fledged quality control facilities that include Gamma Ray,
Ultrasonic, Magnaflux, Dye Penetrant, etc., for non-destructive testing.

Fully equipped laboratories to conduct chemical, mechanical and metallurgical

tests anda fully Computerised vacuum emission spectrometer with 60 channels
and a print out system. BAIRD, USA make Spectrometer, having different Alloy
Sets calibrated to take care of inhouse requirements and also extending service to
The alloy sets include SG Iron, Grey Iron, Low Alloy Steel, Stainless Steel, NIHARD,

Sand Testing Equipment from BCIRA/George Fisher &

Physical testing laboratory with 60 Ton Universal Testing Machine,

Co., USA

The Quality Assurance is inbuilt in the system and routine stage inspection has been
incorporated to ensure raw material control, process control and control of finished

To achieve monthly production target as per customer requirement
To improve quality by reducing process rejection below 3%
Increase productivity by effective utilization of resources
Maintain production and discipline in the section
Coordination of workers and shop floor activities
Share information

Structure of Planning Department

The objective of this department is to achieve monthly target as per production

program issued from marketing department. SMW has the overall responsibility of
this department. He is responsible to the following:
Ensuring targeted production.
Authorization of annual/monthly production plan based on budget. The
responsibilities of SEW are:
Preparation of annual/monthly production plan.
Planning, scheduling and dispatching of job cards.
Identifying the gap in the implementation process.
Responsibilities of other functionaries involved are given against individual

The scope of this department is:

Planning in respect of components relating to the production of products.
Testing the products
Finishing and packing the products
Scheduling of operations in respect of manufacture of components.

Assembly of part and finished products.

Structure of Commercial Department

Overall responsibility for marketing policy rests with GM. Coordination commercial
function including marketing. Commercial Department include sales department also.
The company markets its products in 3 ways. Firstly, responding to tenders and
quotations as per customer requirement and specification. SMM shall consolidate the
requirements of the product, taking into consideration the customer requirements,
stated or unstated, statutory and regulatory requirements or any other additional
requirements determined by the company, if any, including requirement. He shall
prepare note incorporation the above requirements and submit the same to the Apex
Management for review and approval. Secondly, through approved dealers or
distributors. Order for AUTOKAST standard products are normally handled through
dealers. Changes occur in the case of specifications additional features or standard
Thirdly, its through counter sales. When a customer approaches directly to
purchase the product of the company, he has to fill up the order format and if his
requirement is in line with the company specification, company registers the order and
sales is affected.
The function of this department also includes handling, storage, packaging,
preservation and delivery of finished products.

L & T Mumbai

Crompton Greaves Mumbai

Jyothi Electricals Calcutta

Adwani Orlicon Mumbai

Materials and Planning control (MPC)

This department plays a strategic role in materials management. MPC
is the prime agency responsible for the availability of any material,
required for production and hence constantly keep track of material status. It is the
department which receives the material is made available to the manufacturing
section. As this department has the major responsibility of the stock in store and
for allocation and coordination with the purchase department procuring right material.

Structure of Purchase Department

This department deals with the purchase of raw materials from various sources.
In Elite, raw materials are purchased through inviting tenders from suppliers 100% of
raw materials are purchased from outside suppliers. Production department gives
order to the purchase department to purchase raw materials. The main raw materials
are aluminum sheets, aluminum road, steel sheet, steel parts, copper sheets and copper

Purchase Policy:
AUTOKAST Ltd has a purchase policy to purchase raw materials in right
quantity and quality aright time, at right place from a right source. The source of
materials is selected by checking the samples collected from different suppliers.
Acceptance of sample can be done as per the recommendations from the quality
assurance department. If the samples are qualified, the criteria the suppliers can be
included in the list of qualified suppliers. Tenders should be sent to qualified suppliers
only. They only have the ability to provide bulk of raw materials of the company. Raw
materials required for the company as follows,

Raw materials.
Capital goods.
Sub assemblies.

Spare parts.

The responsibility of purchasing material rests on the SO purchase. He is

responsible for procurement, components and raw materials.

Purchase procedures:
All the purchase shall be made by purchase department.
Bill of materials shall be given by the production department.
Material intends in forward to purchase department against each projects.

Other items except capital goods required by various departments are intimated
to store who prepares purchase intend and forward the same to giving full
specification, samples of necessary requirement of capital goods is identified in
various departments and set to purchase department often getting approval from the
competent authority. Some of the major suppliers are:

Indian Technological Products Private Limited.

Delhi Electronic Products Limited, Chennai.
Sermet electronics, Pune.
NSP, Bangalore.
Konark Industries, Bangalore.

Structure of Marketing Department
The scope of this department is to cover all the products of the company sold
directly to customers against order or through approved dealers/distributors appointed
by the company. Overall responsibility for marketing policies rests with GM,
coordination of commercial function including marketing. This function rests with

Duties of SO-marketing:
Now the AUTOKAST produce motor starter and meters. The responsibility
of marketing of motor starters and other products rest with SO-marketing. The
responsibility of the SO-marketing is to maintain and promote dealers, preparation and
providing production programmer to workers, arranging dispatches as per schedule,
payment follow up, customer coordination scrap sales and other assignments given by

Duties of SO-sales
The responsibility of marketing of meters and contractors rests with the section
officer-sales. The responsibility of the section officer-sales is to assist SMM in
achievement of departmental objectives and record keeping, tendering and other
assignments given by him.
The other duties of section officer-sales are as follows:
Preparation and providing production program to works.
Arranging dispatches a per schedule.
Payments follow up.
Customer coordination.
Compliance of excise formalities.
Stock maintenance.
Arrange packing.
Payment collection and filing excise return in respect of meters and contractors.
Payments follow up in respect of starters, scrap and other products.


Structure of quality control department

This department is concerned with checking the quality of products made in the
company. At each and every stage of production, the quality of the product is checked.
Before it becomes the final product, it is cross checked.

Quality Policy:
AUTOKAST and its employees are committed to develop, manufacture and
market house service energy meters and motor control gears, ensuring customer
satisfaction of its products and services through continual improvement of the
effectiveness of its OMS achieved by setting and reviewing objectives.

Quality Objectives:
Top management of AUTOKAST establishes implements and communicates
operational measureable quality objectives at all relevant functional levels. The
achievement of the same is measured monthly through MPRM.

Quality Management Principles:

AUTOKAST has framed its quality policy and manages its quality policy
manage its quality system following the eight management principles of ISO:
9000:2000, listed below.
1) Customer Focus:
AUTOKAST meets customer requirements and strives continuously to meet
customer expectation by determining and reviewing customer requirements and
measuring customer satisfaction.
2) Leadership:
Top management of AUTOKAST establishes and provides leadership and unity of
purpose and direction through management review meetings and provision of
3) Involvement of People:
AUTOKAST believes that involvement of all employees is essential for the better
functioning of the organization. This is achieved by planned training as given in the
guidelines for training.
4) Process Approach:
The departmental guidelines of major functions follow a process approach and include
PDCA cycle, which provides proper direction for achieving results when resources are
managed as a process. It also helps to provide direction in taking planned corrective
5) Continual Improvement:
Continual improvement of QMS is achieved through measurement of quality
objectives achieved, measurement of customer satisfaction.
6) Factual Approach in Decision Making:
AUTOKAST takes effective decisions based on results of analysis of data. This is
achieved through the interactions in the management meeting on the performance of
individual departments.
7) Mutually Beneficial Supplier Relationship:
AUTOKAST tries to maintain beneficial and a mutual relationship with supplier.

Quality Assurance
The SE Quality Assurance is in charge of quality checking of the raw material
samples. The quality assurance department also checks quality of incoming raw
materials and the products in process. Inspections of finished goods are done by AE
inspection. All meter products in the company are handed over to sales department.
The sales returned meters are checked and corrected heres a commitment toward
Total Quality Management in line with CII/EFQM guidelines, annual improvement
action plans are being implemented involving techniques like
Business Process Re-Engineering.
Six sigma.

These are resulting in cycle time reduction for further improvements in delivery
and technological process up-gradation, leading to improvement in quality profit to
products and enhanced customer focus on a continuous basis.
To fulfill its role as a corporate citizen towards protection and conservation of
the environment and ensuring that its products and systems also meet such
requirements, AUTOKAST has finalized a Corporate Environment management
Policy for ISO 14002 Certification.
For ISO 9001 certification, the International Audit is done once in six month by
the AUTOKAST personnel independent of their functions and External audit is done
by Bureau Verities Quality International

Management Responsibilities Regarding Quality

Management must define and document its policy objectives and
commitment to quality.
Ensure that it is understood and implement at all levels.
Define responsibilities and authorities.
Identify verification and assign to competent personnel with adequate
Appoint management representatives.

Quality System Standards

ISO - International Organization for Standardizations

Series of Standards. ISO 9000:

ISO 90001:2000.

ISO 90001:
Covers management responsibility, contact review, control of design, purchase,
testing storage, etc.
All units of AUTOKAST are ISO: 9001 certified. Certification Agency
BVQ1 (by Bureau VERITAS Quality International).
International audit once in 6 months
ISO: 9000-2000 Version Brief Overview:
Revised standard is compatible with principles of ISO 14000 andTQM. It centers on results
achieved through P-D-C-A (Plan, Do, Check, Act) and processed approach.
Focus on business needs, continue improvement through measurable performance parameters
leading to customer satisfaction.
Mandatory documentation requirements simplified required in 6 of the following areas:
1) Documentation control.
2) Quality records.
3) Internal audit.
4) Control of non-conforming products.
5) Corrective action.
6) Preventive action.

ISO 14000 (environment management system)

1) Converts Statutory, Regulatory Acts (pollution, chemical treatment, discharge etc.)
2) Energy consideration, resource utilization.

Quality issues faced by AUTOKAST :

1. Performance/Function.
Input to output performance.
2. Dimensional.

3. Completeness.

Foundation etc.

Incomplete suppliers.
Incomplete finish.
Incomplete spares.
Incomplete tools.
Incomplete documents (drawings, test reports/certificate).
Inadequacy (technical information)
Not clear/legible

4. Quality documentation.
Inadequacy (technical information)
Not clear/legible.
5. Delivery.
Not in sequence as required by site/customer.
6. Others.
Ease of handling/maintains.
7. Response time, behavior and attitude of AUTOKAST personnel towards

TQM Model: The Ten Essential Steps:

Management readiness.
Customer Supplier partnership.
Environment scanning.
Existing system.
Strategic planning
TQM training.
Disciplined system implementation.
Process enhancement.
Performance evaluation.
Continuous improvement.


Structure of Research and Development Department

Purpose of R&D Department

The scope of this department is the design and design modification of the
following products manufacture in the company:

Responsibilities and authorities of R&D department:

The apex management team holds the responsibility for the final approval of
the technical specification of the product, which is to be taken up for design and

SMW holds responsibility to convene the core committee for reviewing the
design at various stages. He is also authorized to approve the various design outputs
such as bill of materials, drawings, flow charts of the project, approving brand etc.

SMR & D holds the responsibility of preparing the product flow chart, bill of
materials, design drawings, wiring diagrams, etc.

Structure of Store Department

SMW is the overall charge of stores. Store assistants have the individual
responsibility relating to all operations of the respective sub-stores and to keep the
records properly. The duty of assistants is to count the quantity of goods. There are
also trainees.

Functions of Store Department

Receiving material/accounting.
Issue of materials.
Items of repair/rectification/calibration/refilling sub assembly/receipt of item
for outside issue.
Inventory management.

For making the function of store department more effective, the store is divided
into different sub-stores, namely:

General store.
Raw material store.
Electronic store.
Starter store.
Tool store.

Stationary store. The main objective of store department is the materials to be

stored in proper places with proper accounting. Storage is done under preserved
condition whenever necessary. Identify items, which deteriorate quality from past

Structure of Safety Department

Every organization must have a safety department for the safety of workers.
Though the frequency rate of accidents is comparatively low, the management is keen
to take interest to reduce the accidents as far as possible by engineering methods and
personnel equipments at inevitable stages.

Safety precautions at AUTOKAST :

For making the functions of the safety department, AUTOKAST takes the following

Safety committee.
Safety steward committee.
Safety training for executive supervisor and artisans.
Accidents investigation reporting system.
Issue of safety equipment.

Objectives of the Safety Committee:

Objectives of the safety committee are as follows:
Control of accidental hazards.
Promote safety consciousness among employees.

Communicate to the top management regarding safety aspects. Safety steward

will entrusted with the responsibilities of continuous watchfulness. Persuasion and
correction of fellow employees to enable safe methods of work being is adopted. In
addition to the above, award of rolling shield for safety and cleanliness was introduced
during the year 1983 in this unit. The rolling shield will be awarded to sections that
maintain goods, safety conditions of working and maintain cleanline

SWOT Analysis of a company reflects the effectiveness of the functions of the
company in each and every department. Brainstorming technique was adopted to find
the SWOT. It is a group creativity technique designed to generate a large number of
ideas from a group of employees. Suggestions are evaluated and the analysis is made.


Quality of Products: The products of AUTOKAST possess high quality. It is an

ISO 9001:2000 certified company. The company offers 15 years warranty for its
products. Before getting approval. The company products pass through different types
of tests.

Customer Focus: The Apex Management Team of AUTOKAST shall determine,

understand and try to satisfy the needs and expectations of customer with the aim of
enhancing customer satisfaction. The Marketing Department has the primary
responsibility and Quality control has the secondary responsibility and all other
departments have the responsibility for commitments for ensuring customer

Involvement of workers is high: AUTOKAST believes that involvement of all

employees is essential for the better functioning of the organization. This is achieved
by planned training as given in the guidelines for training. Top management of
AUTOKAST establishes and provides leadership and unity of purpose and direction
through Management Review Meetings, Monthly Performance Review Meetings and
provision of resources.

Process Approach: The departmental guidelines of major functions follow a process

approach and include (PDCA- Plan, Do, Check, Act) cycle, which provides proper
direction in taking planned corrective actions.

Continual Improvement: Continual Improvement of Quality Management Systems

is achieved through measurement of quality objectives achieved, measurement of
customer satisfaction, resolution of departmental non-conformances, implementation
of corrective and preventive actions and internal audits. These are reviewed in the
management review meetings.

Mutually beneficial supplier relationship: AUTOKAST

tries to maintain
beneficial relationship with suppliers and thereby enhance ability of both to create
value. The organization continually measures the performance of supplier sand gives
them feedback and possible help to improve performance. It also gives them chance to
assess the organization on the above chance.
Skillful workforce: AUTOKAST shall determine the competency of the personnel
performing the work affecting the Quality Management Systems on the basis of
assessment done by immediate superior. The identified needs shall be consolidated for
preparation of the training plan for satisfying the training needs. A yearly Competence
Improvement Plan covering training, exposure visits, self-learning etc. shall be
prepared. As a result the workforce has expertise in the respective areas.
Good Industrial Relations: The relation with the top management and workers are
cordial. Not a single working day was missed due to labor unrest in the past 30 years.

High employee turnover: With the introduction of VRS, the person shaving
experience left the company. This resulted in the reduction of experience hand in the

Inadequate Performance Appraisal: The prevailing system of performance

appraisal is inadequate in the present scenario.

Lack of Motivational Techniques: The Company provides mandatory welfare

measures to its employees. But motivational technique like promotion takes too much

Time consuming policy decisions: AUTOKAST is a government company. So the

decisions related to policy takes comparatively longer period.
Poor financial stability: For years, the company depended on only one customer and
the customer gained high bargaining power. The government policies also affected the
performance of the company. This lead to financial instability.
Inadequate R&D: Due to poor financial stability, company could not set aside much
fund for R&D purposes. This prevented the company from introducing new products.
Because of this, the competitors which were established after AUTOKAST overtook
the company in many areas.

An aging population will require more orthopedic implants; by 2015P, the
U.S. population over 65 years old will reach 48 million, an
increase of over 18% from 2010
A rise in osteoporosis-related fractures and musculoskeletal diagnoses are
driving increased orthopedic procedure volume, particularly
for individuals age 65 or older
Medical expenditures related to obesity have doubled over the last decade and
currently represent an annual spend of approximately
$150 billion in the U.S.
Active lifestyle trends have resulted in increased implant volumes for
younger demographics
Technology advances are making devices last longer, fueling younger patient
acceptance of life-long implants

Competitions: the company is facing tough competitions from the private and public
sector undertakings

Emerging of modern technology: Due to globalization modern technology were

available in the market. The competitor make s of that.


The major findings are:
Good reputation of the company: Quality products and the government brand
name is a major advantage for the company. It as a wide acceptance among the
customers since it possesses a good customer handling and great quality products.

Well-disciplined staff and employee: The work force is the strength of the company.
All the workers work whole heartedly for the progress of the company even in bad
times. There was no labor conflict in the past 30 years.

Hard working skilled labor force: The labor force is very skilled. The company
recruit fresh technicians and give extensive training to them.

Good management employee relationship: The grievance re addressable system is

very effective in the company. The company believes in the policy Prevention is
better than cure, and it results in a good employee employer relationship.

Effective attendance system: The company follows a punch card system. By which,
the company can find out the total hours an employee spend in the working place.

Harmonious Industrial Relations: The HR department makes sure that every

reasonable need of the employee is met. The company considers employees as their
greatest wealth.

Maximum capacity utilization: The company plan their personnel needs very
effectively and recruits the correct number of persons. This ensures the maximum
utilization of resources.

Regular feedback system: The feedbacks from the customers are collected in time
with a view to improve the operational efficiency. For this the customers are contacted
personally after a certain period of delivery. The company provides feedback forms to
the customers.

Good HR planning: HR planning is excellent. The company calculates the personnel

requirement well in advance and act accordingly. Most of the time their planning is
accurate. This ensures the effective utilization of resources.

Solvency: Solvency of the company is good. It maintains a favorable solvency ratio.

The major suggestions are:
Employee Turnover should be minimized: In the long run, this may seriously affect
the company. So the real reasons behind this should be found out and corrective
measures should be taken
Performance appraisal system should be improved: At present the companys
performance appraisal system is not up to the mark. The companys techniques are
little outdated. A 360 degree appraisal system can be introduced.

Improve the motivational techniques: The motivational techniques need a revision

on the grounds of increased employee turnover. The company should make the
employees more loyal to the company. For this timely promotion, incentives and plans
like ESOP (Employee Stock Option Program) may be introduced.

More marketing efforts should be made: The new technologies in the information
technology can be utilized for that. The website of the company should be converted
into an E-commerce portal. All the companys products should be listed with pictures
and all the specifications and facilities for online trade should be made.

Infrastructure should be developed for improving the output.

Technology transfer should be established with some reputed organization.

Company should appoint marketing executives.

In our project Determination of Service Indicators for Service Departments,
We have finalized the service indicators for all the service departments of Autokast
Industries limited. Today is the buyers market. In the world of globalization, by
ensuring merely the customer satisfaction, the organization can survive but it cannot
flourish and compete with the competitors. For that, it is important to move from
customer satisfaction to customer delight and ultimately to customer obsession, only
then the organization can rule the market. There are both external and internal
customers whose attitudes, opinions and behavior affect the organizations day-to-day
External customers- external customers exist outside the organization. This type that
comes to mind are end-use customers, the ones who use or consume the product or
services of the organization for their own purposes or production.
Internal customers- employees of the organization for whom the service departments
provide product, services or servicing.
Stakeholders- are those whose interests are linked with the organisation. It includes
employees, stockholders, community leaders.
If the internal customers are satisfied, then only it is possible to attract and retain
the external customers. Service indicators are basically framed to ensure the
satisfaction of internal customers and developing the culture where the organisation
can ensure the best many features and functions of the organization.

Quality of services provided by the service departments to the employees.

Books & Journals
Harte John (1997) Management Crisis & Business Revolution,Transaction
Pandey.I.M (2006) Financial Management, New Delhi, VikasPublishing
House Pvt Ltd.
Kotler Philip, Lane Kevin, Jha Abraham and Mithileswar(2007)Marketing
Management- South Asian Perspective, New Delhi, PearsonPrentice Hall.
Sekaran and Uma(2007)Research Methods for Business- A SkillBuilding
Approach, New Delhi, Wiley India.5.Company Journals.
ISO 9001:2000 Quality System Files