Vdocuments - MX A Report On Organizational Study at Carborundum Universal LTD Cumi Nalukettu

5/21/2018 AREPORTONORGANIZATIONALSTUDYATCARBORUNDUMUNIVERSALLTD(CUMI)NALUKETTU,KORATTY...
A REPORT ON ORGANIZATIONAL STUDY
AT
CARBORUNDUM UNIVERSAL LTD (CUMI)

NALUKETTU , KORATTY
Submitted
ALIAS A Y
Un der the Gui dance of

PROF . S . G . BHAT
In
Partial f ul fi llment of the r equir ements for th e
award of the degr ee of
Master of Business Administration
Department of Management Studies
ADI SHANKARA INSTITUTE OF ENGINEERING TECHNOLOGY

(An ISO 9001:2008 Certified Institution)
(2012-2014)
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DECLARATION
I, ALIAS A Y hereby declare that this report of the Organizational Study at

CARBORUNDUM UNIVERSAL LIMITED, KORATTY , NALUKETTU has been
prepared by me under the guidance of Prof. S.G. BHAT, ADISHANKARA INSTITUTE
OF ENGINEERING AND TECHNOLOGY, Kalady . I also declare that this training
report is my original work and it has not previously formed the basis for award of any degree
or diploma.
Date:
Place: Kalady ALIAS A . Y.
2
ADI SHANKARA INSTITUTE OF ENGINEERING TECHNOLOGY

Shankar Nagar, Mattoor, Kalady
CERTIFICATE
Certified that this is a bonafide record of the project work “Organizational Study”
submitted by ALIAS A Y during the year 2012-2014 inpartial fulfillment of the
award of the degree of Master of Business Administration.
Faculty Guide H.O.D (MBA) Principal (ASIET)
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ACKNOWLEDGEMENT
The successful and timely completion of this Organization Study

and its reports become possible only with those eminent personalities who extended their
wholehearted support and valuable assistance.
First of all I would like to extend my gratitude to our Principal Dr. Prof. S G IYER,
our HOD and guide Prof. S G BHAT of ASIET College, Kalady for their excellent
encouragement and support throughout the course of this project.
I express my humble gratitude to Mr. JULIUS V. D. , HR Executive of

Carborundum Universal Limited (CUMI), Nalukettu ,Koratty for his guidance , support
and friendly cooperation which shaped this organizational study from its completion . .I
express my sincere thanks to Mr. BIJU ISSAC, Plant manager of Carborundum Universal
Limited (CUMI), Koratty .
Above all, I thank the power and spirit of universe, the Almighty, for his inspirations
throughout the life.
Date: ALIAS A Y
Place: Kalady
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TABLE OF CONTENT
Chapter No. Title Page No.
1 Introduction
- Objective of study
- Scope of the study
- Limitation
2 Industry Profile
3 Company Profile
Organisation Structure
Product Profile
4 Functional Departments
4.1 Operation department
(a) Production department

(b) Quality department
(c) Maintenance department
4.2 HR department
4.3 Finance department

.
4.4 Shipping &Marketing
. department
. 4.5 System department
5 SWOT Analysis
6 Conclusion
Appendix
Bibliography
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CHAPTER 1
INTRODUCTION
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INTRODUCTION
The organizational study was conducted in Carborundum Universal

Limited, Koratty. As a part of MBA course this organizational study helps to know about the
organizational activities and various functions of the different department . The
organizational study was mainly conducted for knowing the particular organization and also
for getting amble information about the activities of each department.
Carborundum Universal was established in 1954 as a joint venture between
the Murugappa Group, India, the Carborundum Co., USA, and the Universal Grinding Wheel
Co. Ltd, U.K. . The main business activity of Carborundum Universal involves manufacture
of coated abrasives, bonded abrasive, super-refractories, electro-minerals, industrial ceramics,
and ceramic fibers. Further, CUMI produces about 20,000 different varieties of abrasive
products, refractory products, and electro-minerals. Carborundum Universal Ltd. has 10
manufacturing facilities across India and these manufacturing facilities are meticulously
connected with wide network of distributors and sub – distributors .
CUMI is known to be an innovator and exports its products to 43

countries spread across North America, Europe, Australia, South Africa, and Asia. All the
manufacturing facilities of Carborundum Universal are ISO 9001:2008 , ISO 14001: 2004
and ISO 18001: 2007 certified for quality standards , environment-friendly and health-safety
manufacturing practices respectively.
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Objectives of the study:
 To study the functions of various departments

To understand the process flow in each departments
 To understand hierarchical structure of various departments
 To do SWOT analysis of organization
 To have an exposure to the working environment
Scope of the study:
The study has been conducted at Carborundum Universal Ltd, Koratty, Thrissur, Kerala,
during the period of May, 2013.The study focuses on overall understanding of how the
various departments in the organization function.
Limitation :
Time is a major limitation since the organizational study was only for a period of one

month
Officers were at the peak of work and busy schedule of the department heads

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CHAPTER 2
INDUSTRY PROFILE
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INDUSTRY PROFILE
World scenario
The electro mineral industry faced competition from imports but this was counted by
delivering quality product . In the export market, removal of anti-dumping duty of Chinese
product export to Europe. However during period the European counties are falling to
financial crisis . Many of companies stopped their production or quantity of production is
decreasing due to financial crisis .
Indian scenario
CUMI will continue to focus on quality and application, specific product offering and on
improving its customer base. In the domestic market there are 3 manufactures for electro
minerals. CUMI is market leader in the Indian Industry .The export market will be targeted
with Silicon Carbide micro grit with improved in product quality. CUMI is a major player in
the domestic market for the Brown and White Fused Aluminum Oxide and Silicon Carbide.
The key success factor in the industry is cost and quality, while entry barriers are
sophisticated technology. The availability of substitute product, product differentiation and
imports continue to be the principle challenge in the business.
State Scenario
There was a 17% increase in power tariff in Kerala, which adversely affected the profitability
of the electro-minerals industry. This was future compounded by the low power plant due to
poor monsoon in Kerala last year. The cost push created by improvement in operating
efficiencies of the country. Use of consumption and reduction in power consumption and
improvement in crude recovery helped in the same.
Competitions
In India there are four main players in this Industry. Apart from CUMI, SNAM Abrasives,
Orient Abrasives and Grind well are the major players. In order to mitigate the competition
risk, CUMI entered into a joint venture with Wendt India and holds 40% of its share capital.
After the joint venture, it now offers full range of abrasives to its Customer‟s viz.
conventional and super abrasives. Super abrasives are manufactured by Wendt India Ltd. at
its plant located at Hosur in Tamil Nadu. CUMI is a market Leader in Indian abrasive
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industry and enjoys a share of more than 45% followed by Grind well Norton which has a
share of 40% in the abrasive market.
Major Players (Major Competitors )
 3M Coated abrasives division(USA)

 Abandon Silicon Carbide of Aluminum production complex(ABASIC)
 Abrasive Grains E.T Powder SA(AGP)France
 Beiging Kingder Resource and Technology Development Corporation (China)
 Carborundum Universal LTD (India)
Carborundum Universal Limited manufactures the widest range of Bonded and Coated
abrasives in the world. The Rs 314 crore, the company pioneered the manufacture of coated
and bonded abrasives in India, besides super refractories, electro minerals, industrial ceramics
and ceramic fibers. CUMI makes over 20,000 different varieties of abrasives, refractory
products and electro-minerals, manufactured at 14 locations. CUMI has the distinction of
having all its manufacturing units ISO 9001: 2008 certified.
Industry overview
Competition is increasing day by day so that the product development will be the main
criteria. Our mineral resources are limited so there is a challenge in future development. High
capital investment, limited market, sophisticated technology, availability of substitute
products, product differentiation & import are the principle challenges in this industry.
Exports
Carborundum industry plays a significant role in the growth of Indian economy and it is an
important component of global trade.. It is the second largest industry of India and is the
largest foreign export earner, accounting for 35% of the gross export earnings in trade .They
export 23 countries across the world.
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CHAPTER 3
COMPANY PROFILE
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COMPANY PROFILE
ESTABLISHMENT
CARBORUNDUM UNIVERSAL LTD (CUMI)

Carborundum Universal, also known as Carborundum Universal
Ltd (CUMI) is an India-based coated and bonded abrasive manufacturing company
.Carborundum Universal was established in 1954 as a joint venture between the Murugappa
Group, India, the Carborundum Co, USA,and the Universal Grinding Wheel Co. Ltd, U.K.
The main business activity of CUMI involves manufacture of coated abrasives, bonded
abrasive, super- refractories, electro-minerals, industrial ceramics, and ceramic fibers.
Further, CUMI produces about 20,000 different varieties of abrasive products, refractory
products, and electro-minerals. Carborundum Universal Ltd. has 14 manufacturing facilities
across India and these manufacturing facilities are meticulously connected with a wide
network of distributors and sub distributors. The company pioneered the manufacture of
Coated and Bonded Abrasive in India in addition to the manufacture of Super Refractories,
Electro Minerals, Industrial Ceramics and Ceramic Fibres. Today the company ranges over
20,000 different varieties of abrasives, refractory products and electro-minerals are
manufactured in ten locations across various parts of the country.
CUMI-Business Distribution (As per the revenue)
CUMI is known to be an innovator and exports its products to 23

countries spread across North America, Europe, Australia, South Africa, and Asia. All
the manufacturing facilities of Carborundum Universal are ISO 9001:2008 certified for
quality standards and ISO 14001 certified for environment-friendly manufacturing
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practices and OSHAS 18001 certified for health and safety respectively. Carborundum
Universal Ltd Koratty , electrominerals unit established in 1985 . The R & D wing comes
out with constant innovations and product up gradations of products, which makes the
company a world leader in grinding technology. Its core competence provides total grinding
solutions which enables maximum grinding efficiencies and reduced cost for customers .
COMPANY HISTORY YEAR EVENTS
1954-1963 Revenues Rs.19 million
 Incorporate as a joint venture between caborundum company, USA/Universal

Grinding Wheel Company, UK and the Murugappa Group, India.
 Acquired a coated abrasives facility from Ajax Products pvt.ltd.
 Bonded abrasives facility set up at Chennai, India
 Bauxite mining at Bhatia,gujurat,india
 Manufacture of super refractories at Chennai, India

 Brown aluminum oxide grains plant at Edappally, India
 Bauxite mining at Bhatia, Gujarat
 Acquisition of Eastern Abrasives Ltd,a coated abrasives manufacturer in Kolkata,

India
 Second bonded abrasives plant at Hosur, ,India
 Established MMECL as a joint venture with Morgan Group plc,for ceramic fibres
 Expansion of bonded abrsives plant at Hosur with a modern facility for vitrified
grinding wheels.
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 Silicon carbide plant at Koratty & Refractories plant Ranipet,India

 Industrial ceramic plant at Hosur, India
 Acquisition of 40% interest in Wendt (India) Ltd., a joint venture with Wendt Gmbh,
Germany for super abrasives.
 12 MW Hydel project at Maniyar ,Kerala

 Second unit at Edapally for manufacture of brown aluminum oxide grains.
 Acquired a controlling interest in Cut fast Abrasive Tool Ltd,and cut fast Polymer
ltd,a Chennai Based abrasive manufacturer and subsequent mergers

 Established a 5.5MW natural gas based thermal power plant in Nallur in Tamil Nadu,
India through Southern Energy Development Corporation Ltd.
 Acquired Prod rite Anticorrosive ltd, a leading player in anti-corrosion engineering.
 Cloth proceeding facility at Maraimalainager ,Tamil Nadu
 Capital investment of about Rs.4 billion for various modernization, expansion/new

product projects.
 Automated thin wheel facility at Hosur and Chennai, India
 Modern silicon carbide micro grit plant in Koratty, India
 Modern polymer manufacturing facility near Chennai, India
 Establishment of CUMI Middle East & CUMI Canada Inc.
 Establishment of state of – the-art coated abrasives Sriperambudur ,Chennai ,India
 Acquisition of monolithic refractory facility in Jabalpur, India
 Acquisition of Volzhskiy Abrasives Works, Russia
 Acquisition of the Technical Ceramics Unit at Aurangabad, India
 Acquisition of 51% holding Foskor Zirconia (Pty)Ltd ,South Africa, the world‟s
largest manufacturer of Zirconia
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 World class facility for wear resistant liner, tiles, Hosur, India
 Manufacturing facility for Thin Wheels, Uttarkhand, India
 Manufacturing facility for Power Tool at Jigani, Bangalore, India.

Commissioning of a modern 1,000 tonne vitrified bonded abrasives plant & 2,000
tonne organic bonded abrasives facility in China
 Establishment of state-of-the-art metalized cylinder plant at Hosur, India
 Establishment of state-of-the-art super refractory‟s plant at Ranipet Serkaddu,India
 Setting up of a modern facility for manufacture of anti-corrosive products at
Serkaddu, India
 Establishments of automated silicon carbide micro grit plant in Cochin SEZ
Koratty plant
Carborundum Universal Limited Koratty , Electrominerals Macro unit established in 1985 .

The plant main product macro Silicon Carbide . Modern Silicon Carbide micro grit plant
established in 2005 . Now the plant capacity , Plant macro unit about 1000tons per month and
micro unit about 750 tons per month .
VISSION AND MISSION
Vision:
The vision of the Carborundum Universal Limited is “we will be admired technical ceramic
company driven by innovation continuously enhancing stakeholder wealth”
Mission:
The mission of the Carborundum Universal Limited “we will steadily improve EMD‟s
profitability and grow aggressively in new products and micro grits.”
To be innovative, resourceful, and profitable company.

To meet customer requirements of quality service and price consistency.
To make doing business with us easy, and delightful to our customers.
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To provide an entrepreneurial environment in which employees can respond to the

needs of business and service, earn fair rewards and can be satisfied.
OBJECTIVES
 To maintain the market leadership.
 To minimize the cost incurring in production process.
 To maintain the product quality.
 To be competitive at all markets.
 To be compliment to all global quality standards.
 To maintain the top position in the industry.
 To utilize the new technological changes for the benefit of the company
Forward into the Future
Carborundum Universal Limited is gearing for its next phase of growth and
expansion .Growth that could be defining and provide a quantum leap in terms of terms of
scope and scale .Continuing its journey in sustainability , the company has drawn up plans for
expansions , acquisitions and synergistic alliances with international technology providers .
Flagging the commencement of this phase , CUMI has entered into an

agreement for acquisition of a fused minerals and super refractory products manufacturing
facility which will be named as Thukela Refractories , South Africa .
CUMI „s vision is value driven and based on trust and enduring people
relations . Relationships that transcend transactions and celebrate sustainability as an integral
part of growth .
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ENVIRONMENTAL POLICY:
We at CUMI are committed to be an eco friendly organization and shall strive to protect,
preserve and to improve our environment. This will be achieved through
 Continual improvement of the operations for achieving better environmental

performance
 Optimizing usage of energy and other resources
 Minimizing waste generation and disposing appropriately to reduce the on the
environment
 Complying with environmental legislations and regulations other requirements to
which the organizations subscribes

 Creating environmental awareness among all those who work and on behalf of the
organization
QUALITY POLICY
We shall proactively meet customer expectation by providing quality products and services.
This will be achieved through:
1. Total commitment of the management in implementing an effective quality

management system
2. Continual technological development in fulfilling changing need of the customer.
3. Total employee involvement for continues improvement
4. Enhancing employee competence through education and training
5. Building mutual beneficial relationship with suppliers
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BOARD OF DIRECTORS
Mr. M . M. Murugappan : Chairman
Mr. Subodh Kumar Bhargava : Non – executive Director
Mr. T L Palani Kumar : Non – executive Director
Mr. Sridhar Ganesh : Non – executive Director
Mr. Lakshminarayan : Non – executive Director
Mr . Shobhan M Thakor : Non – executive Director
Mr. Sanjay Jayavarthanavelu : Non – executive Director
Mr . K Srinivasan : Managing Director
CUMI Plant Locations
1 CUMI Plant location
 CUMI , Tiruvottiyur ,Tamil Nadu

 CUMI , Bonded Division , Hosur ,TN

CUMI , Cutfast Division , Pallikaranai , TN

 CUMI , Parganas District , West Bengal
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 CUMI WINDFARM , Tirunelveli , TN

 CUMI , Industrial Ceramics Division , Dharmapuri , TN
 CUMI , Super Refractories Division , Ranipet , TN
 CUMI , Electrominerals Divisions ,Kalamassery , Kerala
 CUMI , Micro plant , Cochin SEZ , Kakkanad
2. Plant locations of Subsidiaries / Joint Ventures

Sterling Abrasives Ltd , Gujarat
 Muragappa Morgan Thermal Ceramics , Ranipet ,TN
 Wendt Ltd , Hosur , TN
 Volzhsky Abrasive Works , Russia
 CUMI Abrasives & Ceramics Co. Ltd , China
 CUMI Australia PTY . Ltd , Malaga

CUMI Canada Inc.
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ORGANISATION STRUCTURE
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ORGANISATION STRUCTURE
MD
K . S . SREENIVASAN
SENIOR VICEPRESIDENT (EMD)

N ANANTHASESHAN
GENERAL MANAGER ( MANUFACTURING)
A R SATHEESH
SENIOR MANAGER
MANAGER SENIOR SYSTEM SR MANAGER SENIOR SENIOR
MANUFACTURINJG
ACCOUNT MANAGER ADMINI- ENGINEERING MANAGER MANAGER
SHIPPING STRATOR & HR
MAINTENANCE TQM & QA
MANAGER MANAGER
ASSIT MANAFACTURI- SHIPPING DEPUTY DEPUTY HR
MANUFACTURING
ACCOUNT NG EXECUTI- MANAGER MANAGER
(MICRO)
QA EXECUTIV
MACRO VES

SUPERVISOR
STORE
DM DM OPERATIVE TEAM SUPERVISOR SUPER-

MANUFACTURING MANUFACTURING S MEMBERS VISOR
JR JR.
OPERATIVES TEAM
SUPERVISOR SUPERVISOR
MEMBERS
OPERATIVES OPERATIVES
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NATURE OF PRODUCT
Silicon Carbide is a man made mineral of extreme hardness and sharpness. It is the ideal
abrasive for grinding / sanding materials of low tensile strength such as Cast Iron, Brass,
Aluminum, Bronze etc. Its thermal properties make it an excellent medium for use in the
manufacture of refractory products and crucibles.
Silicon Carbide is produced by a process involving the electrochemical reaction of silica – in

the form of quartz with Carbon in the form of raw petroleum coke. The stoichiometric
mixture is reacted in an electrical resistance furnace at a temperature greater than 2200˚C to
yield high quality crystals. The large crystals are then segregated, crushed, cleaned of
magnetic impurities in high intensity magnetic separators and classified into narrow size
fractions to suit the end use. Dedicated lines produce products for different applications.
Silicon Carbide Grains are also used in marble and granite polishing, manufacture of Kiln
furniture and as a deoxidizer in Iron and steel making.
Silicon carbide (SiC), also known as carborundum, is a compound of silicon and carbon with
chemical formula SiC. Silicon Carbide powder has been mass-produced since 1893 for use
as an abrasive. Grains of silicon carbide can be bonded together by sintering to form very
hard ceramics which are widely used in applications requiring high endurance, such as car
brakes, car clutches and ceramic plates in bulletproof vests.
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CHAPTER 5
FUNCTIONAL DEPARTMENTS
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4.1 .a. PRODUCTION DEPARTMENT
Production department structure
GENERAL MANAGER
SENIOR MANAGER
MANUFACTURING
MANAGER MANUFACTURING MICRO MANAGER MANAFACTURING

MACRO
DM MANUFACTURING
DM MANUFACTURING
JR SUPERVISOR
JR SUPERVISOR
OPERATIVES
OPERATIVES
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SILICON CARBIDE is the major product produced in CUMI Ltd. Raw materials used are
quartz and raw petroleum coke. These two raw materials are furnished at a temperature of
2200 °C. This furnished product is classified in to two
 Macro
 Micro
MACRO
1) Furnace plant
The raw materials of the product are quartz and coke. They are mixed along with reclaim for
making mix charge as per the mix card issued by QA .One mix charge should be nearly
4tonnes ( ONE MIX = COKE 560 kg ,QUARTZ 800 kg ,Brg1 200kg ,Brg2 2350kg ,Water
100L ).Like wise 20 mixes will be used to fill a furnace. Furnasing will continue for 48 hours.
After that it will be allowed for 16 hours air cooling and 8 hour water cooling .Cooled pig
will be manually sledged to remove half reacted crushed in Jaw crusher and it will be send to
GP for further crushing and grading.
2) Grain plant
 Crushing
Macro grit is the crushing of silicon carbide through different crushing such as
BARMAC, Raymond mill and other silicon carbide is crushed in to grains. Hence we
derive powder form of silicon carbide, macro grains.
 Magneting
During the process of crushing some iron particles are attached with macro grit which is
then removed through high force magnets
 Sizing
It is for grading the product. Different sizing machines are used with different openings.

Quality control check
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Detailed chemical and physical analise is done to determine the iron percentage, silicon
carbide, size, magnetic, imputation and bulk density.
 Bagging
All the grits are then bagged and send to Chennai for further production. They use HDPE
bags. Paper bag used for HDPE restricted countries.
MICRO
The input of micro grit plant is the end product of the macro plant. But in this plant
the grit are imported from Russia due to finer quality and economies available
1) Jet Milling
Its operations refer to crushing using compressed air. This is an iron free grinding
process.
2) Air Classifier
With the help of air classifier product are graded.
3) Quality control check
The chemistry, size and quality of the product is checked and assured.
4) Bagging
The end production is then packed for shipping.
Bonded Grain Sizes Available

F12 , F14 ,F16, F20, F24, F30, F40, F46, F54, F60 , F70, F80, F90 , F100,
F120, F150, F180 and F22O as per FEPA ( Federation of European Producers of
Abrasives) standard 42-1:2006
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COATED GRAIN SIZES AVAILABLE

12, 14,16, 20, 24, 30, 36, 40, 46, 54, 60, 70, 80, 80, 90, 100, 120, 150, 180 and
220as per FEPA (Federation of European Producers of Abrasives) standard 43-1:2006.
 BLACK SILICON CARBIDE MICRO
GRAIN SIZES AVAILABLE

F240, F280, F320, F360, F400, F500, F600, F800, F1000 and F1200
.
Applications are:
 Bonded Abrasives
Bonded abrasives is a matrix of closed size abrasive grains pressed together with the help of
vitrified, resinoid or rubber bonding material into a variety of shapes, like grinding wheel,
honing stone etc. The matrix is fired at high temperature to provide a high strength bonding
between the abrasive grains.
CUMI specialize in manufacturing of a complete line of closed sized abrasive grains in
various shapes, sizes and densities, etc. to perfectly fit any grinding application and working
condition.
CUMI Sharp grains are blocky sharp edges with low iron and silica content. Its high
toughness & hardness (Mohs Hardness 9), excellent abrasion resistance, high corrosion
resistance properties combined with cooler cutting characteristics, appropriate friability,
multi-fracturing properties exposing sharp edges and self sharpening characteristics makes it
an ideal raw material for the manufacturing of bonded abrasive for all applications.
Typical Applications
Ball grinding & ball lapping wheel
Rice polishing wheel
Gear grinding wheel
Cam grinding wheel
Crankshaft grinding wheel
Valve components grinding

Internal grinding wheel
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Thin wheel
Tool room grinding wheel
Roll grinding wheel
Razor blade wheel
Flute grinding
Bearing grinding wheel
 Coated Abrasives
Coated abrasives is a three component system consisting of abrasive grains adhering to the
semi-flex backing like paper, cloth, fibre, plastic film etc with the help of resin or glue bond.
Coated Abrasive is manufactured as rolls which is then converted into different foams like
belts, disc, flap disc, flap wheel & spindle mop, sheet & non- woven products.
CUMI specialize in manufacturing of a complete line of closed sized abrasive grains in
various shapes, sizes and densities, etc. to perfectly fit any coated abrasive application and
working condition.
CUMI Sharp Grains for coated abrasives are angular, sharp edged with high capillarity for
instant adhesion to resin or glue bonds and electrostatic characteristics carefully monitored to
provide consistent and reliable grain projection. The High hardness (mohs hardness 9) and
toughness of the CUMI Sharp grains combined with the multi-fracturing property, self
sharpening characteristics and cooler cutting characteristics of the grains makes it an ideal
raw material for the manufacturing of coated abrasives for any application.
Coated abrasives are used by hand or on machines, applications are extremely varied, at
home and in industry for:
Fine finishes: hand sanding or polishing of wooden cabinets, car bodies primers, metals.
High precision operations: Optical lens polishing, magnetic head super-finishing.
Medium stock removal with portable or fixed machines: Floor sanding, disc grinding of
metal, endless belts grinding of wood, metal, glass.
Heavy stock removal with wide (up to 3 m) belts on high power machines to grind stainless
steel sheets or coils or to calibrate plywood or chipboard panels.
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 Brake Lining
Brake lining are mainly composed of a heat resistant and strong fiber which are relatively soft
yet tough with high co-efficient of dynamic friction mounted to a solid backing using high
temperature adhesive or rivet. In order to increase the dynamic co-efficient of friction and
decrease the wear of the brake lining under high temperature produced during braking,
ceramic grains are added to the fiber.
CUMI Sharp micro grains with stringent particle size distribution possesses high toughness &
hardness, excellent abrasion and wear resistant and physical & chemical stability at high
temperature which makes it an ideal additive to the brake lining for higher dynamic co-
efficient of friction, longer life and hence better performance of the brake lining.
Automotive brake
Rail brakes
Air-craft brakes
 High Abrasion Resistance Coating

High abrasion resistance coating is a composite system containing
a high strength resin like epoxy and high abrasion resistance ceramic particles. The high
abrasion resistance coating is in the form of a thixotropic paste which could be easily applied
on the surface with a brush or in the form of a putty containing up to 70% solid mass. The
high abrasion resistance coating is used as a protective coating or to repair worn areas in
material handling equipment or components conveying abrasive materials.
CUMI Sharp micro grains possesses high hardness (more than 9 Mohs),
high toughness, excellent abrasion resistance, high resistance to chemical attack and
corrosion. These characteristics of CUMI sharp grains makes it an ideal raw material for the
manufacturing of High abrasion resistance coating.
Slurry transport Lines
Agitator assemblies
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Impellors
Ash and slurry Pumps
Shafts
Exhaust fans
Ore processing tanks
Screw conveyors
Cyclones
Pipe elbows
Chemical composition
 Production capacity:
Production capacity of the Plant 1 is 1000 tons per month and the Plant 2 is 750 tons per
month
 Packing:
25 kg multiply paper bags of 1000 kg palletized .Other packaging types on request
Work shifts:
The company works in three shifts;
 8am-4pm,
 4pm-12am, and

12am-8am.
ROLE AND RESPONSIBIITY OF PRODUCION MANAGER
 Responsible for managing the production staff.

 Monitoring the day today production.

Ensuring the timely dispatch of sales vehicles.
 Ensuring quality of the product.
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Training newcomers on the process. Taking trials of bread and bun.


Preparing the production report on the day today basis.


SLOGANS
 “ Improve standard of living by increasing productivity ”

 “ Wear safety gadgets in plant ”
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4.1.b.QUALITY CONTROL DEPARTMENT

Quality Assurance Department Structure
SENIOR MANAGER QA
DM QA
SUPERVISOR
JR SUPERVISOR
TEAM LEADER
CUMI is renowned for its quality, not only in electro minerals but also in all their products
such as abrasives and ceramics. As the raw materials for producing abrasives and ceramics
are electrominerals, whose quality is very important.
Quality policy of CUMI:
“We shall proactively meet customer expectation by providing quality products and
services.”
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This will be achieved through:
 Total commitment of the management in implementing an effective quality

management system.
 Continual technological development to fulfill changing needs of the customer.
 Total employee involvement for continuous improvement.
 Enhancing employee competence through education and training.
 Building mutually beneficial relationship with suppliers.
Responsibility of quality department is checking the quality of the raw material because;
the quality of the final product is primarily depending on the raw material.
Quality is checked during-
 Raw material is taken for the Production.

 Mixing the raw materials.
 Furnacing
 Pig yard
 Crushing.

Before packing the final product.
There are two laboratories in CUMI for checking the quality, they are:-
o Chemical lab
o Physical lab
In the chemical lab, they check the chemical properties such as gravity, percentage of
weight of each metal in the product, fusion level, and combination of the product etc.
In the physical lab, they check the free iron, HM (hand magnet), bulk density and size
analysis.
Final checking of the product is done in the bin. Quality analyzer checks the each bin and put
a bin card. If the bin card colour is green, that bin contains the product is accepted and that
bin goes to the packing section. If the bin card colour is red, that bin contains the product is
treated as rejected. If the bin card colour is yellow, they reserve that bin contains the product
34
for recycling.
They follow Total Quality Management (TQM) system for sustaining and improving the
quality of the products. The TQM values followed by the company are:
 Excellence in all aspects of business.

 Customer first attitude.
 Total involvement.
 Emphasis on leadership.
 Internal customer support.
 Continuous improvement.
 Improving quality of life of the employee and society.
 On time delivery.
CUMI maintain their TQM through various activities. These are:
5 „S Policy: CUMI adopted 5s policy for improving the quality of product and work.
1)Sorting.

Segregate required usable re-workable and absolute item.
 Dispose off the unwanted items.
 Clear off walkways
2) Systematizing
 Use labels, colour codes for easy identification
 Use index doe files, records, drawings etc to facilitate retrieve ability

Plan storage with accessibility
3) Shining
 Inspect the supply lines, scrap yards and gardens.
 Clear up workplace, machine and tools after use
 Identify root cause of loud noise, vibration, head noise, vibration heat buildup in
equipment and take remedial action
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4)Standardizing
 Establish checking procedure
 Create visual control

Device ways and means and means to expose problems
5)Self discipline
 Develop action plan for maintaining the self standards
 Give unambiguous advice
. Quality audit
A systematic and independent examination to determine whether quality activities and related
result comply with planned arrangements and whether these arrangements are implemented
effectively and are suitable to achieve objectives.
The company has been following KAIZEN Japanese scheme for continuous improvement in
all activities of the business. This scheme means that the quality of the products or services is
determined by its uses, efficiency, value for the money, comparison with other products and
some other criteria etc. These parameters are varying depending upon the situations. So there
is no proper measure to determine the quality of products and services.
ISO Certification : CUMI has got ISO 9001-2008 series certification for quality assurance
in design / development, production installation and servicing
RESPONSIBLITIES OF QUALITY DEPARTMENT
 Finished goods audit.

 Packing material checking.
 Raw material analysis.
 Finished goods analysis.
 Online checking of dividing weight
 Online checking of finished product weight
 Monitoring the hygiene and sanitation
 Monitoring workers hygiene
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 Documenting the reports

 Damage product checking
 Production report making

Daily production report
SLOGANS
 “It‟s an attitude to achieve perfection ”

 “Our job # 1
Customer Satisfaction ”
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4.1.c. MAINTENANCE & ENGINEERING DEPARTMENT
Maintenance and Engineering Services Department,

operates under certain responsibilities from which it derives its functions and commitments.
One responsibility is to ensure machine availability to ensure production as per monthly plan.
This is accomplished by ensuring minimum down time of critical and support equipment
maintaining high MTBF and Low MTTR, minimize machine downtime by adhering to
preventive maintenance as per plan
Another key responsibility is to ensure availability and quality of utility requirements

electricity, water and roads which are essential for ensuring continued and smooth operations
of the unit. All reports regarding the plant performance on utilities shall be maintained and
corresponding bills shall be verified by this department.
The department shall ensure required availability of all spares, consumables, wear parts for
critical process machinery as well as support equipment and utility facilities
Maintenance Work shop: - The maintenance work shop has the facilities for assembly of
rotatable, drilling and grinding and welding.
Department Objectives
• Ensure availability of machinery as per business plan
• Ensure adherence to performance parameter fixed in business plan
• Reduce maintenance cost
• Adherence to preventive maintenance plan
• Initiate corrective and preventive action
• Ensure availability , quality of plant utilities
• Ensure safe disposal of waste
• Ensure good housekeeping.
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MAINTENANCE DEPARTMENT CHART
Sr. Manager-Engineering and

Maintenance
Dy. Manager- Engineering
Supervisor
Operators (Mechanical) Operators (Electrical) Trainees
Responsibilities of Maintenance Department
• Ensuring plant availability.
• Planning and adherence to preventive maintenance schedule.
• Ensuring machine parameters for optimum operation are maintained.
• Prevent deterioration of machinery condition due to non-achievement of specified

parameters.
• Execution of annual maintenance contracts.
Preventive Maintenance
As we know the famous proverb, “Prevention is better than cure”.CUMI believes in this
proverb. As per this, every Sunday maintenance operatives will inspect and do the
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maintenance work in the whole plant .They identify some critical machines and these
machines are periodically inspected
• Prepare list of all equipment, identify Critical equipment
• Critical machinery can be identified as those machines whose improper functioning will
lead to immediate stoppage of the production module
• Master list preventive maintenance jobs to be prepared from equipment manuals and based
upon inputs from previous history break downs
. Safe work permits and checklists for PM execution shall be issued and verified by
maintenance in charges .
• A preventive maintenance planner shall be prepared based on the above.
Breakdown Maintenance:
If any break down occurs, the concerned department will sent a complaint to the maintenance
department with the help of personal computer (ERP System Ramco No 3). Then the
maintenance Dept. head issues a work order depending on the manpower available. They will
try to rectify the root cause of the break down and bring the machine to the production
process
DOCUMENTS used
 Master list of equipments

 List of critical equipment
 List of machine manuals and equipments manuals
 Annual maintenance
 Maintenance schedule
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 Preventive maintenance check list

 Safe work permits
Use of Personal Protective Equipments (PPEs):
PPEs are one of the major factors to tackle many problems. The effective utilization of PPEs
wherever required minimizes injuries. The company has adopted a strategy regarding its
usage. The management has warned the concerned employees about the consequences of not
using the PPEs. It also considers taking disciplinary action against employees failing to use
them at his work place. The important PPEs provided are:
 Helmets
 Masks
 Gloves
 Ear plugs
 Safety shoes
Slogans

“ Energy conservation is the foundation of the energy independence ”
 “ Make every day , a safe day ”
 “ Wear safety belts when working at a height ”
 “ Look out power before starting maintenance ”
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4.2.HUMAN RESOURCE DEPARTMENT
HR Department Hierarchy
GM
HR MANAGER
DY HR MANAGER
HR EXECUTIVE
STAFF
Human Resource Department
Human resource has always been one of the focus points in business strategy. HR strategy
is carefully linked to the vision, mission and overall business strategy of the company. In
CUMI , the HR department is responsible for putting together the HR plan based on
corporate plan. It is responsible for recruitment, selection of employees, transfers, payroll
processing, canteen, and legal proceedings.
Human Resource Planning is done with the 3+1+3 business plan (3- past 3 year‟s
performance, 1- current year performance,3-forecast of future 3 year‟s performance). The

42
company evaluates the HR requirements estimated by a series of analysis. The basic objective
of this department is effective utilization of Human Resource, desirable working relationship
among all employees and maximum individual development. The most appreciating feature
of CUMI is its profound flexibility in communication between any subordinate and superior.
This contributes to a friendlier cooperating environment. CUMI has a group of very
committed employees. It has strength of 44 permanent employees, 21 management staff, 65
non staff, 21 temporary trainees and 16 contractors.
HUMAN RESOURCE STRATEGY
CUMI‟S business strategy is evolved from Domestic and global market trends,
Economic growth competitor analysis and customer Industries‟ growth plan .HR strategy
is linked to the the business strategy and facilities organization to achieve by building
people capabilities
CUMI‟s concern for people has been driving force for the growth of the organization
over the years attribute last 5 decades. The sustained growth over the past several years
attributed to the knowledge, skills of the people and technology. HR has been one of the
focus points in the business strategy.
The HR strategy is carefully linked to the vision, mission and overall business
strategy of the company
HR Values
 Concern for people

 Integrity
 Customer orientation
 Continuous improvement
 Executive excellence
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HR Principles
 Whether workers or management staff, employees are employees. They are not
different bloc, but two faces of the same coin.
 Employee Unions are treated with respect and are partners in the progress.
 Harmony and peace cannot be at the cost of dilution of organization ethos.
Fairness and firmness will govern all employee relations.
 Communication and dialogue would be the essence of managing relationships.
 A proactive approach and a state of mental and physical preparedness would help
in managing unpleasant issues.
HR Functions
 Recruitment & selection.

 Preparing appointment letters.
 Arranging training and development programs for the employees.
 Keeping all statutory obligations.
 Collecting data from all other factories to enable them prepare details for long
term negotiation.
 Informing the concerned department about the change of factory rules & other
related acts.
 Maintaining strict discipline.
 Making daily attendance of the employees, pay and overtime, this department also
does all correspondence relating to the ESI and PF.
 Running of canteen
. Recruitment & Selection
Recruitment and selection is based on integrity, competency and the ability to work in a
team. Company takes value fit individuals with group into consideration. Individuals are
placed under 1 year probation in which the superior accesses his/her abilities, teamwork,
and performance in pressure situations. But successful completion of probation does not
imply on assurance for permanent employment. Based on experience and qualification
selection of managers is done at the Head office, Chennai. The management gets people
through campus recruitments, personal references etc.
44
The selection procedure consists of:
Aptitude Test
Group Discussion
Personal Interview
Medical Checkup
Final Interview
Line managers are expected to prepare job description and job specification in respect of
job to be filled, HR department is expected to oversee and ensure proper compliance with
statutory and organizational requirement and policies. The recruitment process is a three
tier method-direct, indirect and third party. The sources of recruitment included both
internal & external. The internal source includes transfer and promotion, which is more
preferred by the company. The management chooses external source like campus
recruitments, personal references etc.
Induction
The workers are recruited and selected is given an individual program; introducing them
to the plant, their work and to the concerned department. For managerial personnel, the
induction method used is apprenticeship-training method; immediate supervisor trains
employees. For workers shop floor training is given. There is three level of induction at
CUMI:-
 Corporate induction: mainly for corporate personnel. Given in Head Office (Chennai).
 Induction across unit: Given for management staffs across the units in order to know
the various dynamics exist in the group.
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 Department/functional unit induction: This is given for both management and non-
management staffs; each department managers or supervisors give this.
Training and Development
The need for training is determined by identifying the gap between present performance of an
employee and the desired performance. In CUMI, it is done on the basis of skill matrix.
Training needs identification procedure:
Business Plan/ Long Term Strategy
Policy Deployment
Skill matrix for operatives/ Competency

requirement for managers
Competency gap
Training need identification
Skill Matrix:
The objective of the skill matrix is to have a scientific analysis of skill level. The aim is
that technology changes fast and new technology demands new skill. Therefore, this helps
employees to progress his career plan. Skill matrix measures five aspects of an
individual/personal characteristics, discipline, skill work performance and participation in
management. The skill matrix is to find out the attitude of individual towards work and
46
the skill of the person to perform. It is to identify scientifically the skill level existing in
the organization and to develop the skill levels pattern to meet the business requirements.
In skill matrix, the department head and the employee are rated based on certain
parameters. In rating the performance, it is classified into three -good performance,
average performance and poor performance.
Training for Management staffs
 Two functional and one Personal Effectiveness Training Program as a part of

corporate initiative.
 Specific program against the requirement- Division/unit HR.
 Advanced TQM orientation

 Negotiation skill.
 Out bound training.
 SHE programs.
Training for non-management staffs
 Behavioral training
 Skill improvement training

 Multi tasking
 Process orientation
 Energy management conservation
 TQM orientation
The funded needed for training both management and non management staffs is been
provided from the head office .the evaluation of training through an ERP software called
RAMCO. The performance of the employees evaluated every month through this
software. Based on the performance level they can know the effectiveness of the training
programs
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CUMI‟s policy on HRP
CUMI will recruit based on integrity , competency and the ablility to work in a team. We
would also endeavour to select individuals with leadership potentials, customer
orientation and quality focus. Above all, we also take the value-fit of the individual with
the group in to consideration.
POLICY AND CARRIER PLANNING:
CUMI believes that its our responsibility to develop employees to their potential so that
the future challenges could me met with existing talent
DEVELOPMENT PLAN
The 3 C‟s of retention of talent at CUMI
 Challenge
 Compensate
 Competency
 Areas-operational /cultural excellence
Performance management system
 The performance management system is based on the score card.
 The balance score card is the culmination of the business plan and is the complete
strategic map which identifies the strategic indicators and thrust areas of the business.
This balance score card is the authentic document approved by the Murugappa
Corporate Board. Based on the approved score card the functional score card are
evolved.
 The monthly plans are then evolved from the above. These plans are reviewed on a
monthly basis against the plan.
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 The feedback and the learning‟s from the monthly reviews and course corrections are
incorporated.
 The Performance Management System is on line with Policy Deployment.
 The system is designed to capture the objectives and measures in the policy
deployment table drawn up for the current year.
 The objectives and measures are to be clear cut, specific and quantifiable.
 The appraiser and the appraise will jointly discuss and arrive at the best regrouping
possible of the objectives.
 In the discussions, the appraiser and the appraise agree on a action plans including
resources and support. This is summarized and signed off by both the appraiser & the
appraise.
 A review mechanism is also built in the system to ensure frequent monitoring of n and
course correction, if necessary.
 The review calendar is drawn up to regularly monitor the progress of the objectives
and provide resources if any on the part of the appraisee
 Control charts are maintained at agreed frequency and reviewed.
COMPENSATION
CUMI believes that compensation should be based on the individual performance is

classified through quantifiable/objective. The performance rating will be:
 Exceptional contribution
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 Significant contribution
 Good contribution
 Not meeting the requirement

Not suitable
PERFORMANCE LINKED INCENTIVES:
The incentive, a part of the compensation and linked to balance Score Card helped CUMI,
iniative process of :
 Rewarding stretch effort and risk taking


Encouraging inter functional and organizational perspective

 Providing trust to sustainable processes
 Giving inputs to innovation and learning
Incentives are an important and integral part of the compensation package. It would be based
on the achievement of the company/ SBU Score Card, with age specification for each
perspective
REWARDS AND RECOGNITION

CUMI has evolved a rewards and recognition scheme.
Kaizen Scheme: The objective of the scheme is to encourage and recognize management
staff for their participation and contribution in work /method/productivity improvement and
cost reduction exercises which benefit the organization.
This scheme is applicable to all management staffs up to MG6 including management trainee
category of CUMI for their individual contribution.
Suggestion Scheme: The objective of the suggestion scheme is to encourage and recognize
employee for their participation and contribution in work/method/productivity improvement
and cost reduction exercises which benefit the organization . This scheme is applicable to all
operatives of CUMI for their individual contribution
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AREAS OF SUGGESTIONS:
 To improve production or productivity

 New methods or devices improvement for simplification
 To improve quality of product or maintenance of services
 To improve general; upkeep and cleanliness
 To eliminate wasteful practices
 To eliminate pilferage of materials
 To improve process
 To reduce cost
Performance appraisal
The methods used in CUMI are supervisory rating and self-rating. Performance appraisal
for the managers is called Policy Deployment. This system is based on factors like
business result, quality systems, total employee involvement, waste elimination and
customer satisfaction etc. In this system, the objectives of the GM will be the measure of
his next subordinate and this flow down accordingly until the final objective is attained.
The Performance Management System is based on the Balance Score Card .The Balance
scorecard is the culmination of the Business Plan and is the complete strategic indicators
and thrust areas of business. Appraisal for staffs consists of knowledge of methods and
procedures, quality of work, attendance and punctuality, resourcefulness, good manners,
team spirit etc.
Promotion Policy
Suitability and merit with number of service years are the criteria for promotion.
Promotion policy has been drawn taking into consideration of performance and seniority.
. Workers participation in management
CUMI takes suggestions from employees mainly relating to the cost reduction. The better
suggestions will be considered by the management and rewarded properly.
51
Salary payment
CUMI paying salary to employees through SBI Bank on 7th of every month .
Welfare Measures
 Welfare Fund: Employees will contribute Rs.39 per month to the welfare fund. If the
employee is sick for more than two month, Rs.1400 will be granted. In case of serious
accidents or death, entire amount will be borne by the company. Cash award will be
given to the children of employees who secure highest marks in the SSLC exam.
 Medical Scheme: Staffs who are not under the E.S.I scheme can avail this scheme.
The scheme is to provide financial assistant to the employees who have crossed the
ESI.Act and is not entitled for any other benefit from any other scheme. The ceiling
amount of this scheme is Rs.25000, amount will be granted only for inpatient
treatment. For out patient treatment amount within Rs.1800 will be reimbursed. Three
other members in the family can avail this scheme.
 Recreation Club: CUMI has a library, there is a wide collection of novels and other
books, Television, newspapers ,company magazine (CONNECT) etc. Club conducts

sports and games. The club also conducts family tour programmes every year. The
club also celebrates annual day (which will be Dec/Jan) and Onam festival.
 Canteen: CUMI has a subsidized canteen. Monthly Rs.18 is deducted from every
employee towards canteen. The company appoints suppliers and they are nine in
number. Purchase regarding the canteen is done by the company itself.
 Dispensary: First aid is given in case some accidents happen. A register is
maintained in the dispensary and some of the medicines are stocked. There is no
permanent doctor, but only a visiting doctor who comes every three days in a week
and one compounder. Periodical medical check up is conducted in the dispensary and
the employees are given an amount as medical allowance. The employees are insured
under a group insurance scheme.
 Uniform: Company provides uniform and foot wear to the employees every year. For
those who work in plants three pairs of uniforms and a pair of shoes will be given
once in a year. Those who work in sledging division in every 4 month a pair of dress
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and shoes will be given. The company also pays Rs.110 towards stitching charge.
Both the management and operative staffs in CUMI has the same uniform.
 Birthday celebration: The Company celebrates the birthday of their employees.
Company gives a pack of sweet and a birthday cards to the concern employee.

 Allowances:
 Washing Allowance
 Shift Allowance
 Travel Allowance
 Educational Allowance
 Attendance Bonus

House rent Allowance
 Feeding allowance
 Festival Allowance.
Grievance handling
Company policy:
Redressal of day-to-day grievances can motivate employees to be more effective.

Grievances should be settled reasonably, swiftly and transparently.
Welfare benefits:
Welfare fund:
Management agrees to contribute towards employee‟s welfare fund at the rate of Rs.15.00
– 20.00 month with effect from 1st September, 2006.
Advances:
Management agrees to increase advance from Rs.5750.00 to Rs.7500.00 per annum,

which is to be paid in three installments of Rs.6000, Rs.3500 and Rs.1000 as Onam
advances and school advances and special advance respectively.
53
Safety shoes:
Additional one pair of safety shoes per year to plant operatives considering safety
requirements.
Leaves:
(a) Earned leave - strictly as per factory act

(b) Casual leave - Maximum 13 days per annum
(c) Medical leave - Maximum 12 days per annum
Hospitalization schemes:
Scheme for employee‟s, spouse children. Introduced for those employees who are out of
purview ESI scheme consequent to exceeding the prescribed salary limit of Rs.10, 000
Tour subsidy:
The annual tour subsidy is revised from 5,500 to 10,500. Terms and conditions
unchanged.
Wages and allowance:
Applicable to all permanent employees with effect from 1 st September, 2006
Dearness allowance:
DA is revised from Rs.4.35 to Rs.4.78 per point over and above 83 points of the
consumer price index (1970=100) published by the Director of Statistics, Kerala for
Ernakulam.
House rent allowance:
The house rent assistance is revised from Rs.390.00 to Rs.554.00 per month
54
Conveyance allowance:
The conveyance allowance is revised from Rs.355.75 to Rs.523.75 per month.
Night shift allowance:
Revised from Rs.10.00 to Rs.15.52 per shift for those who work between 4 pm and 12
midnight shift.
Revised from Rs.13.00 to Rs.19.88 per shift for those who work between 12 midnight and
8.00 am
Attendance bonus:
An amount of Rs.50.00 per month will be paid to eligible employees in addition to the
present practice of paying one day basic pay as attendance
Incentives:
Normal maximum amount earned for good performance per month is Rs.660. variable
pay base on 3 criteria namely process criteria, company criteria and individual criteria.
Overtime:
Overtime allowance is given to the workers on the basis of mass hours.
Overtime=Basic+ DA *attendance hours/240
. Trade unions
 Carborundum Labour Union

 Carborundum Employees Union
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Industrial relation
In CUMI, the HR department plays a vital role in maintaining harmonious industrial

relations. A very good relationship exists between the management and the employees.
Since1987, no strike were reported. Inter as well as intra union rivalry is very low.
Slogans
 “ Energy is the power that drives every human being to triumph ”


“ If you cannot measure it , you can not improve it ”
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4.3. ACCOUNTS DEPARTMENT
ACCOUNT MANAGER
ASSIST
ACCOUNT
STORE
SUPERVISOR
The main finance department is the main branch at Eadappally. It prepares trail balance, MIS
and audit report. The financial department uses Ramco Virtil Works (RVW).
The accounts department does book keeping, accounting and reporting functions. It
undertakes the work of pay sheet preparation of staffs and workers, payment of bills,
vouchers and other financial transactions. They also prepare financial reports of the
company. All the major financial decisions are taken at corporate office (chennai). This
department also keeps income and expenditure accounts, which includes the sale and disposal
visible cost, contribution, fixed overheads, operating and non-operating income etc.
The corporate office provides funds for working capital requirements. Departmental
budgeting is also the function of accounts department.
Duties of accounts assistant is cash transactions, accounts payable, payment of tax. Trial
balance, capital expenditure are maintained by supervisor. Responsibilities of the manager
a/c are making monthly report, auditing and fund management etc. AGM a/c has the full
responsibilities of accounts department.
Major functions of this department are:
 Keeping depreciation account.

 Preparation of income and expenditure account
 Preparation of budget for three years.
 Departmental budgeting
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 Prepare management reports

 Coordinating the auditing functions
 FIFO method used to dispatch stock
 Spare part planning undertaken
 Item wise accounting and control of various inventory items
 Responsible for purchase of mechanical spare
Capital structure:
CUMI‟ capital structure consists of equity share capital, preference share capital, reserve and
surpluses, long-term loan, other loan and deferred tax liability.
Sources of funds:
CUMI‟s main source of fund is from the corporate office (Chennai).Issuing of share and
short-term loans from the company‟s consortium of banks like State Bank of India are the
other source of funds.
Earnings from the operation:
Last year company‟s operating profit and profit before interest and tax (PBIT) were 13.93
crore. In addition, the net profit was 5.55 crore.
Future investment proposals:
CUMI‟s investment proposal is 1500 lakhs for capital planning. It includes 100 lakhs for
mine purchasing, 500 lakhs for the application of tilled furnace, 500 lakhs for the large-scale
production of semi friable products and 400lakhs for miscellaneous.
Every 3rd of the month cash flow statement, Flash Report consisting of sales contribution,
contribution percentage, fixed expenditures, Profit before Interest and Tax (PBIT) and 8 th of
every month Management Information System of profitability and Capex progress, Balance
Sheet statements are sent to Corporate Office.
58
Accounting policies:
The company policy has a special accounting policy, which is the basis of the financial
statement. It is in accordance with the accounting standards issued by the Institute of Charted
Accounts of India.
Deferred revenue expenditure:
Preliminary expenses are amortized over a period of 5 years.
Revenue recognition:
Both income and expenditure are recognized on accrual basis. At the end of the accounting
period, works in progress are recognized as revenue based on proportionate completion
period.
Foreign currency transaction:
Transactions of foreign currency are recorded at the rates of exchange prevailing on the date
of transactions and the exchange loss or gain is recorded within the profit and loss account.
Depreciation:
Earlier days Company adopted Written down Value Method. However, the management felt
that straight-line method would be more appropriate. So from 2000 onwards they adopted
Straight Line Method.
Investment:
It is meant to be held for long term is accounted at cost.
Fixed assets:
Fixed assets are stated at a cost of acquisition and subsequent improvement thereto inclusive
of taxes, dues, freight, and other incidental expenses related to acquisition, improvement and
installation.
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Borrowing costs:
Borrowing costs are capitalized as part of qualified fixed assets when it is possible that they
will result in future economic benefits.
Inventories:
Inventories are valued at lower of cost and net realizable value. Cost includes all direct costs
and applicable production overheads to bring the goods to the present location and condition.
Excise duty on the finished goods is added to the cost.
The company also holds a special Murugappa economic value added method for better
operating profit, faster sales growth reduction in incremental fixed capital, reduction in
effective tax rate and lower WACC.
Retirement Benefits:
The contribution of gratuity fund is based on an annual valuation and to the superannuation is
funded to LIC of India.
Capital structure:
CUMI‟ capital structure consists of equity share capital, preference share capital, reserves and
surplus, long-term loan, other loan and deferred tax liability.
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STORE
The main function of store is procuring the raw materials and other required materials for the
company. This department invites quotation from various suppliers and make a vendors list
on the basis of some criteria.
This department also rates the each vendor based on their previous experience, quality of the
product, delivery speed and price, which is called vendor rating.
This department issues materials as per the order given by the concerned department through
material requisition. If the required material is out of stock, the commercial department head
invites quotations from the vendors. The best quotation is chosen and the purchase order is
placed. On the arrival of the material, it is checked and issued to the concerned department.
Purchase procedure:
Purchase request
Authorization
Quotation
Takes the least quotation
Planning Purchase order
Material collection
Inspection of material
Payment for the material

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Purchase request: If the departments require any materials, they will place a material
requisition to the commercial department. If the required material is not in the store, the store
manager places a purchase requisition (PR) to the plant manager.
Authorization: Purchase requisition is checked by the plant manager and approved for the
quotation.
Quotation: Department invites the quotations from the vendors.
Takes the least quotations: department selects the least quotations

Purchase order (PO): department takes the least quotations with the consideration of their
previous experience, quality of the product and delivery speed then placing a purchase order
to the appropriate vendor.
Material collection: When the materials are reached to the company, the store supervisor
inspects the materials and then issued to the concerned department.
Store:
The main raw material are quartz and raw petroleum coke supplied mainly by Tamil nadu
and Gujarat . The company is considering purchase from other sources also. Every item is
attached with a „Bin Card‟, which has UNIQUE CODE NUMBER consisting of 14 digits.
The card has description of the item, date of receipt, date of supply, balance, signature,
remarks and stock number.
62
4.4. SHIPPING DEPARTMENT
GENERAL MANAGER
SENIOR MANAGER
SHIPPING
JUNIOR OFFICER SHIPPING
TRAINEES
Arrangement of movement of material. Marketing material is not undertaken here. This

department also maintain stock of finished goods.
3Types of dispatches
 Captives dispatch(Branch Transfer about 50% )

 Domestic Sale(with India)
 Exports
63
Functions of shipping department
 Customer interaction, customer visits, quotation preparation and submission

undertaken by department
 Order receipt and order acknowledgement onwards entails responsibility of shipping
department
 Transporters are employed as they absorb liability in relation to vehicles and drivers
 Invoice, Gate pass, Declaration in 8f and Lorry receipt are to be maintained for
domestic sale
 The transportation of domestic and captive sales is arranged by shipping department
as per the customer authorized transporter
 For export CUMI arranges containers for house stuffing at Koratty plant as per the
supervision of central Excise officer
 Stuffing report, Commercial invoice are document maintained for export.
This department is responsible for the packaging of finished products. They start dispatching
only after getting the green card from the quality control department. This department has
also the responsibility to determine the number of casual workers required for the loading and
unloading function. However there is a forklift to do major part of the loading work. This
department also in charge of preparing invoice.
Then it is packed in various quantities. In every shift 210 bags weighing 50 kilograms
(domestic purpose) and 25 kilograms (export purpose) is packed. The bags are placed in
pallet and lifted by Crain and taken to separate area from where trucks carry it to
destinations.
Main customers:
The main customer industries of the CUMI are:
 Automobile industry.
 General metal cutting industry.
 Polishing of metal surfaces.
 Marine paints etc.
64
And the main customer companies are:
 Vishwa vishal.
 Mechans in UK.
 Milthon
 Indoflogates.
 Tata refractories.
Branding:
CUMI made its brand well known in the industry through continuous hard work and
determination. This was possible because of the following reasons:
 Consistent high quality and reliability

 Fair pricing practices and transparency
 Relationship management
 Customized product variants
Sales:
Ninety percentage of the sale is done through direct orders from the customers and 10
percentages is from the dealers. Last year the company‟s domestic sale was around rupees
42.35 crore and the export sale was around rupees 9.5 core.
Distribution:
CUMI has no formal warehouse. They distribute their products directly to the consumers.
Pricing strategy:
In the domestic market, the company sells products at premium price. However, in the export
market the company facing great competition from the Chinese products so in this market the
company sells the products at economic price.
Promotion:
Promotion is done using the broachers, brand name, technical journals, and magazines,
yellow pages of the internet and relationship management.
65
Competition:
Price and quality are the major competitive parameters in this industry. In the domestic
market, company divides the entire market into four regions i.e. north, west, south and east.
Each manager is being responsible for sales in the particular region. Last year the company‟s
domestic sale was around 42.35 crore. In the Indian market, 35 % of the share is from CUMI.
The main competitors of CUMI are Graind well Norton, Snam abrasives and Orient abrasive
.In the export market, the company focuses on Germany, Philippines, Italy, Spain, Saudi
Arabia, Japan, UAE, USA, and South Africa.
66
4.5 .SYSTEMS DEPARTMENT
GM
System
Administrator
System System
System
Operatives Operatives
Operatives
The electro minerals division at Koratty is becoming more automated and technocracy. In
this company, each department uses computer and is interconnected with the help of ERP
(Enterprise Resource Planning) system.
Ramco Virtual Works, a Chennai based software company provides ERP solution The
company uses ERP because it provides:
 Integrated market information.

 Better handling of raw materials
 Better process control
 Reduce the time and cost
 To record the details of HR
 Integrated financial information
The company‟s entire work, raw materials to marketing of the finished good is influenced by
the ERP. If any department is facing any problems, that information will spread to the entire
organization and then the concerned person or department will approach and solve that
problem within the shortest period. These are done with the help of ERP.CUMI has internet,
which is easily accessible. The type of net work is used by the company is Star Network.
67
Office automation facilities are provided by Ramco Virtual Works. It is Chennai based and
perform the activities like Payroll service, shipping and updates etc.
Type of server –
Exchange server for mail transcription. Front – end sever is based on Chennai and the back-
end in CUMI, Edappally. Internet connectivity-Broad band-256kbs.Types of operating
systems are used by the company is Windows 2003 and Windows professional.
Security systems
1. E Scan - that act as an anti virus
2. Fort guard - This blocks the unwanted websites.
URL : http://tvtnet/cumiweb/intranet/home/index.html
IP ADDRESS : 121.243.115.163
WEBSITES
http://www.cumi-murugappa.com/
www.cumi-emd.eu
68
CHAPTER 5
SWOT ANALYSIS
69
SWOT ANALYSIS
STRENGTH

The company provides value for money to the customers through their better quality
and innovative products.
 The company treats customers with respect and concern
 The company has got strong R& D department, which have a policy that 6% of total
sales every year should be from new products. R &D enables the company to have an
edge over competitors in the new product development.
 The company has got professionally managed sales team with strong back up of
reputed dealers.
 ISO 9001: 2008 certification also helps in obtaining some orders as well as
maintaining the standard of the company.
 The greatest strength of the company comes from the employees who are efficient,
energetic and sincere. Dynamic top level management backs them. There is no barrier
between management and workers.
WEAKNESS
 The salinity of water has to be improved.

 .The roads within the company are to be developed so that men and materials can be
moved easily.
 Promotion is based on the seniority not on performance
OPPORTUNITIES
 The company can introduce more of its products in the market.

 The company can produce new and improved products with less labor and advanced
technology.
 More mines have to be found out.
 Globalization and liberalization can make its products globally acceptable.

The company can employ best brains from top business and technical institutions for
better working and management.
70
THREATS

 CUMI faces stiff competition from world majors and local players.

 Power and other equipments are expensive.

 The demand for abrasives has fallen down because of industrial and economy
slowdown.

 European financial crisis .
71
CHAPTER 6
CONCLUSION
72
FINDINGS
 Has a good organizations structure and management system

 Provides better working conditions to workers

Growth possibilities
 Adequate storage facilities
 Experienced employees
 Monopolistic nature in Kerala
 Effective incentives system
73
CONCLUSION
CUMI is an ISO 9001 :2008 certified company. It is an excellent employer and producer of
world class abrasives and refractory‟s. This has happened only with the support of staffs and
workers in the company. The management is dynamic and supportive and patiently the
worker‟s voices and acts accordingly.
For my study I visited Plant I producing silicon carbride and interacted with some of the
employees there. I could also interact with management staff who provided me with adequate
knowledge regarding various departments in the company . All the staff are very co-operative
. The study has helped me to know the objectives, vision and mission, values , rules and
regulations followed by the company. Company follows Japanese concept of housekeeping
- 5S programmes .
The privileged opportunity of doing four weeks long organization study proved out to be
highly beneficial in the learning point of view. It gave a practical knowledge about the nature
of the business firm and it had enabled me to have an exposure to the majority of the topics
related to company functioning, structure , policies , promotional activities , working
environment, organizational culture etc. It has also helped me to acquire the practical
application of the theories studied in the class room ..
74
APPENDIX
75
BALANCE SHEET
(standalone )
BALANCE SHEET (Rs. In million)

As at
As at
31.03.2012 31.03.2011
EQUITY AND LIABILITIES
Share holders ‘s Funds
Share capital 187.40 186.94
Reserves and Surplus 6178.54 5095.30
6365.94 5282.24
Non current liabilities
Long –term Borrowings 558.48 1163.78

Deferred tax liabilities 425.30 420.58
983.72 1584.36
Current liabilities
Short – term Borrowing 409.34 482.72
Trade payable 791.30 834.59
Other current liabilities 1206.58 1110.42

Short term provisions 246.62 138.89
2653.84 2566.62
Total 10003.56 9433.22
ASSETS
Non current assets

Fixed assets
Tangible assets 3822.35 3690.44
Intangible assets 30.94 41.68
Capital work –in- progress 272.54 142.16
–
Non current investments 1245.68 1640.56
Long – term loans and advances 257.96 186.86
5629.47 5701.70
Current assets
-
Current investments 100.00
1548.04
Inventories 1876.88
1772.18
Trade receivables 1847.16
Cash and Bank balances 104.23
78.16
Short term loans and advances 445.82 333.14
76
4374.09 3731.52
Total 10003.56 9433.22
77
BIBLIOGRAPHY
REFERENCE BOOKS
 L R Potti: Research Methods, Yamuna Publication
 P.C. Tripathi, P.N. Reddy: Principles of management, Tata McGraw Hill, 2 nd Edition,
2001
 Philip Kotler, Gary Armstrong: Principles of Management, Tata McGraw Hill, 2nd
Edition, 2001
JOURNALS
 Company magazine ( CONNECT)
 Brochures and Leaflets published by CARBORANDUM LTD
 Annual report
WEBSITES
http://www.cumi-murugappa.com/
www.cumi-emd.eu
78

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5/21/2018 AREPORTONORGANIZATIONALSTUDYATCARBORUNDUMUNIVERSALLTD(CUMI)NALUKETTU,KORATTY...

A REPORT ON ORGANIZATIONAL STUDY

CARBORUNDUM UNIVERSAL LTD (CUMI)

Un der the Gui dance of

Partial f ul fi llment of the r equir ements for th e

award of the degr ee of

Master of Business Administration

Department of Management Studies

ADI SHANKARA INSTITUTE OF ENGINEERING TECHNOLOGY

I, ALIAS A Y hereby declare that this report of the Organizational Study at

ADI SHANKARA INSTITUTE OF ENGINEERING TECHNOLOGY

submitted by ALIAS A Y during the year 2012-2014 inpartial fulfillment of the

award of the degree of Master of Business Administration.

Faculty Guide H.O.D (MBA) Principal (ASIET)

The successful and timely completion of this Organization Study

I express my humble gratitude to Mr. JULIUS V. D. , HR Executive of

Chapter No. Title Page No.

4.1 Operation department

(a) Production department

4.3 Finance department

. 4.5 System department

The organizational study was conducted in Carborundum Universal

Carborundum Universal was established in 1954 as a joint venture between

CUMI is known to be an innovator and exports its products to 43

Objectives of the study:

 To study the functions of various departments

Scope of the study:

Major Players (Major Competitors )

 3M Coated abrasives division(USA)

CARBORUNDUM UNIVERSAL LTD (CUMI)

CUMI-Business Distribution (As per the revenue)

CUMI is known to be an innovator and exports its products to 23

COMPANY HISTORY YEAR EVENTS

1954-1963 Revenues Rs.19 million

 Incorporate as a joint venture between caborundum company, USA/Universal

1964-1973 Revenues Rs.78 million

 Manufacture of super refractories at Chennai, India

1974-1983 Revenues Rs.337 million

 Acquisition of Eastern Abrasives Ltd,a coated abrasives manufacturer in Kolkata,

1984-1994 Revenues Rs.1308 million

 Silicon carbide plant at Koratty & Refractories plant Ranipet,India

Germany for super abrasives.

1995-2004 Revenues Rs.3150 million

 12 MW Hydel project at Maniyar ,Kerala

ltd,a Chennai Based abrasive manufacturer and subsequent mergers

2005-2012 Revenues Rs.12126 million

 Capital investment of about Rs.4 billion for various modernization, expansion/new

Carborundum Universal Limited Koratty , Electrominerals Macro unit established in 1985 .

VISSION AND MISSION

To be innovative, resourceful, and profitable company.

To make doing business with us easy, and delightful to our customers.

To provide an entrepreneurial environment in which employees can respond to the

 To maintain the market leadership.

 To minimize the cost incurring in production process.

 To maintain the product quality.

 To be competitive at all markets.

 To be compliment to all global quality standards.

 To maintain the top position in the industry.

Forward into the Future

Flagging the commencement of this phase , CUMI has entered into an

 Continual improvement of the operations for achieving better environmental

which the organizations subscribes

1. Total commitment of the management in implementing an effective quality