AN ORGANIZATIONAL STUDY OF DECON

TECHNOLOGIES

A Summer Training Report submitted to SRM Institute of Science and

Technology
in partial fulfilment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by
Hena Maria Joy
(Reg. No.RA1952001020016)

Under the guidance of

Dr. G Kannan (Faculty Guide)

Mr. Ramachandran Vasudevan (Industry Guide)

School of Management

SRM Institute of Science and Technology

Chennai – 89

AUGUST 2022
 AN ORGANIZATIONAL STUDY OF DECON
TECHNOLOGIES

A Summer Training Report submitted to SRM Institute of Science and

Technology
in partial fulfilment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by
Hena Maria Joy
(Reg. No.RA1952001020016)

Under the guidance of

Dr. G Kannan (Faculty Guide)

Mr. Ramachandran Vasudevan (Industry Guide)

School of Management

SRM Institute of Science and Technology

Chennai – 89

AUGUST 2022
 School of Management

SRM Institute of Science and Technology

Chennai – 89

Certificate

This is to certify that the Summer Training Report entitled “A

STUDY ON THE FUNCTIONING OF DECON TECHNOLOGIES” in partial

fulfilment of the requirement for the award of the Degree of Master of

Business Administration is a record of original training undergone by Ms.
Hena Maria Joy (Reg. No RA1952001020016) during the year 2019 – 20 of
his study in the School of Management, SRM University, Ramapuram Campus
under my supervision and the report has not formed the basis for the award of
any Degree/Fellowship or other similar title to any candidate of any University.
Place: Chennai – 89

Date: Signature of Guide

Dr. G Kannan MBA, Ph.D.

Assistant Professor (selection grade)
School of Management
SRM Institute of Science and technology

Countersigned:
Head of the Department
Dr. R. Arulmoli B.E, MBA, Ph.D.
HOD - MBA

Submitted to the school of Management, SRM Institute of Science and

technology (Ramapuram campus) for the examination held on

INTERNAL EXAMINER EXTERNAL EXAMINER

 DECLARATION

I, Hena Maria Joy, hereby declare that the Summer Training Report, entitled
“A Study of the functioning of DECON TECHNOLOGIES” submitted to
SRM Institute of Science and Technology in partial fulfilment of the
requirements for the award of the Degree of Masters in Business Administration
is a record of original training undergone by me during the period July –
August 2020 under the supervision and guidance of Dr. G Kannan , Assistant
Professor(Selection Grade), School of Management, SRM Institute of Science
and Technology, Ramapuram Campus and it has not formed the basis for the
award of any Degree/Fellowship or other similar title to any candidate of any
University.

Place: Chennai – 89 Signature of the

Student Date:
 ACKNOWLEDGEMENT

First and foremost, I offer my sincerest gratitude to our Chancellor, SRM University, for his
academic support and the facilities provided to carry out the project work at the Institute. His
wide vision and concern for students have been inspirational.
I wish to express my profound gratitude to my venerable Chairman, SRM Group of
Institutions-Ramapuram & Trichy Campuses, who offered me such a huge opportunity,
incredible Infrastructure and other support which made the project work quite smooth.
I express my heartfelt thanks to our Dean, Vice Principal (Academic) and Vice Principal
(Admin), Faculty of Engineering and Technology, SRM University, Ramapuram Campus
who provided all facilities for carrying out this project.
I immensely thank to our Head of the Department Dr. R. Arulmoli, B.E, M.B.A., Ph.D.,
Professor & Head for his cordial support, valuable information and guidance, which helped
me in completing this task through various stages. The blessing, help and guidance given by
him time to time shall carry me a long way in the journey of life on which I am about to
embark.
I take this opportunity to express my profound gratitude and deep regards to my guide Dr. G
Kannan, Assistant Professor for her exemplary guidance, monitoring and constant
encouragement throughout the course of this project.
I also take this opportunity to express a deep sense of gratitude to Mr. Ramachandran
Vasudevan, Director, Decon Technologies for his cordial support, valuable information, and
guidance, which helped me in completing this task through various stages. I owe my
wholehearted thanks and appreciation to the entire staff of the company for their cooperation
and assistance during the course of my project.
I thank God Almighty for showering his perennial blessing on me for giving me the courage
to pursue this project work successfully. I owe a lot to my parents, who encouraged and
helped me at every stage of my personal and academic life, and longed to see this
achievement come true.

Hena Maria Joy

(Reg. No. RA1952001020016)
 CONTENTS

CHAPTER TITLE PAGE NO

Introduction
2
1.1 Introduction of the study
3
1.2 Objective of the Study
3
I 1.3 Importance of the study
3
1.4 Scope of Study
3
1.5 Period of the study
4
1.6 Chapterization

Industry and Company Profile

6
2.1 Industry Profile
II 18
2.2 Company Profile
25
2.3 Product Profile
28
2.4 Organization Chart
III Functioning of various Departments
3.1 HR Department 30
3.2 Finance Department 36
3.3 Marketing Department 38
3.4 Production Department 40
3.5 Quality / Testing 44
3.6 Financial Statement Analysis 47
-Income statement
-Cash flow statement
-Ratio analysis
 List of Tables and charts
Tables TITLE Page No:
2.1.1 Top 20 Manufacturing Industry 10
2.1.2 Advantage India 13
3.4.1 Material Casting 43
3.4.2 Material Bar/Forge 44
3.5.1 Quality control approaches 45
3.5.2 Destructive and non- destructive tests 46
3.6.1 Balance sheet 48
3.6.2 Income statement 49
3.6.3 Cash flow 49
3.6.4 NPR 52
3.6.5 GPR 53
3.6.6 ER 54
3.5.7 LR 55
3.6.8 NCWR 56
Charts TITLE Page no:
2.4.1 Organizational Chart 28
3.6.1 NPR 52
3.6.2 GPR 53
3.6.3 ER 54
3.6.4 LR 55
3.6.5 NCWR 56
CHAPTER I

1
1.1 Introduction

Learning beyond the classroom is an important part of any degree. Theoretical

expertise should be aided by practical exposure to make a good management student.
This report was made as a part of such a study conducted at DECON
TECHNOLGIES.

This study focuses primarily on the understanding of the organizational structure of

the organization from a management point of view. It also seeks to apply the theory of
management to the practical, real world situation and draw conclusions.

Manufacturing is the production of products for use or sale using labour

and machines, tools, chemical or biological processing or formulation, and is the
essence of secondary industry. The term may refer to a range of human activity
from handicraft to high tech but is most commonly applied to industrial design, in
which raw materials from primary industry are transformed into finished goods on a
large scale. Such finished goods may be sold to other manufacturers for the
production of other more complex products (such as aircraft,
household appliances, furniture, sports equipment or automobiles), or distributed via
the tertiary industry to end users and consumers (usually through wholesalers, who
in turn sell to retailers, who then sell them to individual customers).

DECON TECHNOLOGIES manufactures a variety of high precision, critical

components for various sectors such as oil and gas, power, chemical and process
industry which are custom made to exact specification and expectation of the
customer. Being a core manufacturing industry, the primary focus has been on the
production and testing aspect of the company. Every effort has been made to
understand the company profile and various functionalities.

Due to the ongoing global pandemic and resulting lockdown during the period of the
study, all communication happened online or via telephone. This report has been
made taking into account all the limitations and adhering to all government rules and
restrictions cause due to corona during July- August 2020.

2
1.2 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

 To conduct an Organizational study of DECON TECHNOLOGIES.

SECODARY OBJECTIVES

 To study the overall working of DECON TECHNOLOGIES.

 To understand the organizational structure of DECON TECHNOLOGIES.
To study the functions of different departments.
 To get an overview of manufacturing industry.
 To perform a SWOT analysis of the organization.

1.3 IMPORTANCE OF STUDY

The study helps to understand the Manufacturing industry in general; with specific
techniques, manpower management, finances and operations, distribution methods
under the identified sector.

1.4 SCOPE OF THE STUDY

The study focuses on understanding the macro view of the organizational structure
and working of the various departments in it. It also aims at understanding the
information flow within the sub units and how they cumulatively add up to the
organizational goal.

1.5 PERIOD OF STUDY

Summer internship was done for 6 Weeks at DECON TECHNOLOGIES
understanding the organizational functions and different functional department
working and co-existence in the company.

3
1.6 CHAPTERIZATION

 Chapter 1: This chapter contains, Introduction, Objective, Importance, Scope

and Period of the study.
 Chapter 2: This chapter consists of Company and Industry Profile, Product
profile.
 Chapter 3: This chapter consists of Functions of various departments of
the firm.
 Chapter 4: This chapter contains the findings, suggestions and conclusion of
the study.

4
CHAPTER II

5
2.1 PORT PROFILE

Manufacturing has emerged as one of the high growth sectors in India. Prime Minister of
India, Mr Narendra Modi, launched the ‘Make in India’ program to place India on the world
map as a manufacturing hub and give global recognition to the Indian economy. Government
aims to create 100 million new jobs in the sector by 2022.

Manufacturing is the production of products for use or sale using labour and machines, tools,
chemical or biological processing or formulation, and is the essence of secondary industry.
The term may refer to a range of human activity from handicraft to high tech but is most
commonly applied to industrial design, in which raw materials from primary industry are
transformed into finished goods on a large scale. Such finished goods may be sold to other
manufacturers for the production of other more complex products (such as aircraft,
household appliances, furniture, sports equipment or automobiles), or distributed via the
tertiary industry to end users and consumers (usually through wholesalers, who in turn sell to
retailers, who then sell them to individual customers).

Manufacturing engineering or manufacturing process are the steps through which raw
materials are transformed into a final product. The manufacturing process begins with the
product design, and materials specification from which the product is made. These materials
are then modified through manufacturing processes to become the required part.

Modern Manufacturing includes all intermediate processes required in the production and
integration of a products components. Some Industries such as semiconductor and steel use
the term Fabrication. The Manufacturing world is closely related to engineering and
Industrial design.

In the pre-industrial world, most manufacturing occurred in rural areas, where household-
based manufacturing served as a supplemental subsistence strategy to agriculture (and
continues to do so in places). Entrepreneurs organized a number of manufacturing households
into a single enterprise through the putting-out system.

The factory system was first adopted in Britain at the beginning of the Industrial Revolution
in the late 18th century and later spread around the world. The main characteristic of the
factory system is the use of machinery, originally powered by water or steam and later by
electricity. Increased use of economies of scale, the centralization of factories, and

6
standardization

7
of interchangeable parts were adopted in the American system of manufacturing in the
nineteenth century.

Engineers working in the manufacturing business are responsible for the safe and efficient
planning, management and maintenance of production methods and processes. Manufacturing
has a few major areas of work which be thought of as the process of manufacturing. Typical
areas of work include:

 Research: this involves exploring new concepts or materials for products as well as
making incremental improvements to existing products. Research engineers also try to
find the next big thing that will give their organisation the edge in the market, by
introducing ideas for an improved product or innovating a new, advanced process.

 Design: engineers design products with consideration of what the customer wants and
the specialist processes needed to manufacture them. Increasingly designers must
consider the ‘whole life’ of the product and review how the product will be disposed
of at the end of its life.

 Development: the development process involves taking a product design or prototype

and making it into a manufacturable product. Development engineers consider the
scale of production (volume), availability of materials (and their cost), production
safety, lead times, quality and overall cost.

 Production: production engineers optimise manufacturing processes for safety and

efficiency. It involves managing production teams, maintaining schedules, dealing
with health, safety and environmental (SHE) hazards and troubleshooting production
line issues.

 Quality assurance: manufacturing organisations have strict quality controls and will
adhere to a system. Engineers working in this area design and review quality systems,
instruct and supervise staff and develop and carry out quality assurance tests on
products.

Engineers in manufacturing can also apply their skills in commercial roles such as marketing,
supply chain, operations management, logistics, and sales and after-sales service. In
manufacturing industry, these roles support the core manufacturing process.

8
Economics of manufacturing

Emerging technologies have provided some new growth in advanced manufacturing

employment opportunities in the Manufacturing Belt in the United States. Manufacturing
provides important material support for national infrastructure and for national defence.

On the other hand, most manufacturing may involve significant social and environmental
costs. The clean-up costs of hazardous waste, for example, may outweigh the benefits of a
product that creates it. Hazardous materials may expose workers to health risks. These costs
are now well known and there is effort to address them by improving efficiency, reducing
waste, using industrial symbiosis, and eliminating harmful chemicals.

The negative costs of manufacturing can also be addressed legally. Developed countries
regulate manufacturing activity with labour laws and environmental laws. Across the globe,
manufacturers can be subject to regulations and pollution taxes to offset the environmental
costs of manufacturing activities. Labour unions and craft guilds have played a historic role in
the negotiation of worker rights and wages. Environment laws and labour protections that are
available in developed nations may not be available in the third world. Tort law and product
liability impose additional costs on manufacturing. These are significant dynamics in the
ongoing process, occurring over the last few decades, of manufacture-based industries
relocating operations to "developing-world" economies where the costs of production are
significantly lower than in "developed-world" economies.

Manufacturing and investment

Surveys and analyses of trends and issues in manufacturing and investment around the world
focus on such things as:

 The nature and sources of the considerable variations that occur cross-nationally in levels
of manufacturing and wider industrial-economic growth.
 Competitiveness; and
 Attractiveness to foreign direct investors.

In addition to general overviews, researchers have examined the features and factors affecting
particular key aspects of manufacturing development. They have compared production and
investment in a range of Western and non-Western countries and presented case studies of
growth and performance in important individual industries and market-economic sectors.[4][5]

9
On June 26, 2009, Jeff Immelt, the CEO of General Electric, called for the United States to
increase its manufacturing base employment to 20% of the workforce, commenting that the
U.S. has outsourced too much in some areas and can no longer rely on the financial sector
and consumer spending to drive demand.[6] Further, while U.S. manufacturing performs well
compared to the rest of the U.S. economy, research shows that it performs poorly compared
to manufacturing in other high-wage countries.[7] A total of 3.2 million – one in six U.S.
manufacturing jobs – have disappeared between 2000 and 2007.[8] In the UK, EEF the
manufacturers organization has led calls for the UK economy to be rebalanced to rely less on
financial services and has actively promoted the manufacturing agenda.

List of top 20 manufacturing countries by total value of manufacturing in US dollars for its
noted year according to World Bank.

Rank Country/Region Millions of $US Year

World 13,171,000 2017

1 China 4,002,752 2018

2 United States 2,173,319 2017

3 Japan 1,007,330 2017

4 Germany 832,431 2018

5 South Korea 440,941 2018

6 India 408,693 2018

7 Italy 310,897 2018

8 France 273,971 2018

10
 Rank Country/Region Millions of $US Year

9 United Kingdom 251,985 2018

10 Mexico 208,498 2018

11 Indonesia 207,017 2018

12 Russia 203,988 2018

13 Brazil 180,541 2018

14 Spain 180,264 2018

15 Canada 160,531 2015

16 Turkey 146,077 2018

17 Thailand 135,927 2018

18 Switzerland 129,162 2018

19 Ireland 115,591 2018

2018
20 Saudi Arabia 100,232

Table 2.1.1

11
Indian Manufacturing Industry

Manufacturing provides many jobs, at all levels. It is important as an employment generator.

Among all sectors (service, agriculture, social, manufacturing), manufacturing distributes
wealth most equitably among the workforce; hence is a key factor to pull people above the
poverty line. E.g. In most of the fast-developing Asian countries such as Thailand, Indonesia,
Malaysia, Taiwan, Philippines, Korea and China, manufacturing has contributed 30 to 50 per
cent of GDP, and thus have helped in eradicating poverty. In contrast, Indian manufacturing
sector’s contribution to GDP has moved from 16% to 18.32 % in last 10 years. Make in
India” initiative is designed to take manufacturing to 25% of GDP. For India to realise these
projections our manufacturing industry has to play not just significant but a leading role.
Under this initiative GoI has identified and taken many steps to improve competitiveness of
Indian manufacturing organizations. This has resulted into India to jump to 58th rank out of
140 countries on the Global Competitiveness Index of the year 2018.

Even before GoI started serious efforts through reforms, organised manufacturing sector in
India has put its act together and has spent significant efforts in putting the house in order.
While battling with factors beyond their control leading Indian manufacturing companies
have taken lot of efforts to reduce manufacturing costs, improve quality, sweating the assets
and improve productivity. Most of the leading Indian manufacturing companies have adopted
world class manufacturing or manufacturing excellence practices using methodologies like
TPM, TQM, Six-Sigma and Lean. Since 2003, India companies have won 401 JIPM TPM
awards which are highest for any country outside Japan. Indian companies have won 38
Deming Prizes – the highest global recognition for TQM implementation. India has the most
US FDA approved pharma plants outside US.

While that is the story of top of the pyramid manufacturing companies an average
manufacturing company in India is yet to adopt world class manufacturing practices and
claim to get competitive advantage. Many Indian companies use various manufacturing
improvement initiatives. These initiatives are used on stand-alone basis without integration.
E.g. initiatives like kaizen, 5 S, Quality Circles and Six-Sigma etc. excel in themselves and
remain restricted to lower and middle level. Such programs remain largely cosmetic in nature
without creating any competitive advantage. In some multi plant organization each plant is
left to decide their individual program with limited or no horizontal deployment of best

12
manufacturing practices.

13
Often there is no integrated approach to initiatives across plants. E.g. while one of the plant
might be winning accolades in Quality Circle initiative, other plants of the organization do
not have a culture of Quality Circle but may be working on other initiatives. Another typical
behaviour we often see is that the plant manager would claim to be knowledgeable about
manufacturing excellence initiative but there would not be practicing the same. today’s
Manufacturing plants are not isolated from the end to end supply chain which consists of
Plan, Source, Make and Deliver. Hence Manufacturing practices within four walls of
manufacturing can’t be built in isolation. There have been many examples of companies
spending lot of money on ERP with limited impact on manufacturing performance as
modules like PP and MM are not supported by a strong manufacturing improvement initiative
that improves down time, cycle time, change over time, MTBF and MTTR. Objectives of a
manufacturing excellence program have to be defined in the context of specific supply chain
challenge faced by the company’s supply chain. E.g. a B2B supplier has to build abilities to
provide small batch sizes of variety of parts within short lead time as demanded by the
customer factory which itself might not be very good at supply chain planning. In such a case
the plant has to focus on efficient layout, quick change overs with minimum wastages and
delayed differentiation. A pharma plant has to be fully compliant with GMP as defied by
regulators. Thus, practices like 5S, process capability improvement, SOP management;
ability to do exhaustive CAPA and data integrity should be the key objectives of its
manufacturing excellence program. In many such cases we don’t see the supply chain
objectives being well integrated in manufacturing.

Involvement of grass root level is the foundation of any improvement initiative. A robust
mass awareness and communication program which makes the masses aware of the business
challenges and new improvement initiatives has to run on an ongoing basis. It gives
opportunity to the leaders to connect with the masses and gives employees to see how their
role needs to change with changing time. Programs like 5S, Kaizen, suggestion scheme,
Quality Circle etc have to be effectively used to achieve shop floor improvement objectives
which get cascaded from the organizational thrust areas. Today customer wants full visibility
and access to shop floor. The experienced customer or auditor of international regulatory
body assesses the work culture during such visits by interacting directly with shop
supervisors and workmen and nothing remains hidden. Thus, we must move from employee
involvement to employee engagement. Creation of empowered cross functional Area
Effectiveness Teams in each section right from entry gate to scrap yard & ETP is needed to
improve workplace organization and employee engagement.

12
Upgrading skills is a continuous process as the manufacturing technology is changing fast.
Knowledge of basic 7 QC tools, Why-Why analysis etc are no more new skills. These are
basic skills to remain gainfully employed in today’s manufacturing world. In India most of
front-line staff lack adequate supervisory skills which hamper their ability to do effective
daily management.

Table 2.1.2

Gross Value Added (GVA) at basic current prices in India’s manufacturing sector grew at a
CAGR of 5 per cent during FY16 and FY20 as per the annual national income report
published by Government of India. The sector’s GVA at current prices was estimated at US$
397.14 billion in FY20PE. The manufacturing component of IIP stood at 129.8 during FY20.
Strong growth was recorded in the production of basic metals (10.8 per cent), intermediate
goods (8.8 per cent), food products (2.7 per cent) and tobacco products (2.9 per cent). India’s
Index of Eight Core Industries stood at 131.9 in FY20. India’s manufacturing PMI stood at
51.8 in March 2020. Also, companies would start to spend more on hiring and anticipate
good growth in prospects. As per the latest survey, capacity utilization in India’s
manufacturing sector stood at 69.1 per cent in Q2FY20. The electronic goods industry is

13
one of the fastest growing

14
industries and is expected to be worth Rs 27.96 lakh crore (US$ 400 billion) by 2020. The
Government is working on an export-oriented policy for electronic products. The idea behind
this policy is to promote greater export of electronics and drive larger investments by setting
up port-based electronic manufacturing clusters. The Government of India has been
supportive towards industry’s growth. It has set up Electronic Hardware Technology Parks
(EHTPs), Special Economic Zones (SEZs) and has brought about a favourable climate for
Foreign Direct Investment (FDI). The Government has also increased liberalisation and has
relaxed tariffs to promote growth in the sector. In addition, it has given the nod to Modified
Special Incentive Package Scheme (MSIPS) under which the Central Government will be
offering up to Rs 11,881 crore (US$ 1.7 billion) in benefits to the electronics sector in the
next five years.

Manufacturing systems: methods of manufacturing

Agile manufacturing

Agile manufacturing is a term applied to an organization that has created the processes, tools,
and training to enable it to respond quickly to customer needs and market changes while still
controlling costs and quality. It's mostly related to lean manufacturing.

An enabling factor in becoming an agile manufacturer has been the development of

manufacturing support technology that allows the marketers, the designers and the production
personnel to share a common database of parts and products, to share data on production
capacities and problems—particularly where small initial problems may have
larger downstream effects. It is a general proposition of manufacturing that the cost of
correcting quality issues increases as the problem moves downstream, so that it is cheaper to
correct quality problems at the earliest possible point in the process.

Fabrication

Metal fabrication is the creation of metal structures by cutting, bending and assembling
processes. It is a value-added process involving the creation of machines, parts, and structures
from various raw materials.

Typically, a fabrication shop bids on a job, usually based on engineering drawings, and if
awarded the contract, builds the product. Large fab shops employ a multitude of value-added
processes, including welding, cutting, forming, and machining.
15
As with other manufacturing processes, both human labour and automation are commonly
used. A fabricated product may be called a fabrication, and shops specializing in this type of
work are called fab shops. The end products of other common types of metalworking, such
as machining, metal stamping, forging, and casting, may be similar in shape and function, but
those processes are not classified as fabrication.

Flexible manufacturing

Most FMS consist of three main systems. The work machines which are often automated
CNC machines are connected by a material handling system to optimize parts flow and the
central control computer which controls material movements and machine flow.

The main advantages of an FMS are its high flexibility in managing manufacturing resources
like time and effort in order to manufacture a new product. The best application of an FMS is
found in the production of small sets of products like those from a mass production.

Just-in-time manufacturing

Just-in-time (JIT) manufacturing, also known as just-in-time production or the Toyota

Production System (TPS), is a methodology aimed primarily at reducing times within the
production system as well as response times from suppliers and to customers. Its origin and
development were mainly in Japan, largely in the 1960s and 1970s and particularly at Toyota.

Manufacturing engineering

Manufacturing Engineering is a branch of professional engineering that shares many common

concepts and ideas with other fields of engineering such as mechanical, chemical, electrical,
and industrial engineering. Manufacturing engineering requires the ability to plan the
practices of manufacturing; to research and to develop tools, processes, machines and
equipment; and to integrate the facilities and systems for producing quality products with the
optimum expenditure of capital.

The manufacturing or production engineer's primary focus is to turn raw material into an
updated or new product in the most effective, efficient & economic way possible.

Mass customization

Mass customization, in marketing, manufacturing, call centres, and management, is the use of
flexible computer-aided manufacturing systems to produce custom output. Such systems

16
combine the low unit costs of mass production processes with the flexibility of individual
customization.

Mass customization is the new frontier in business for both manufacturing and service
industries. At its core, is a tremendous increase in variety and customization without a
corresponding increase in costs. At its limit, it is the mass production of individually
customized goods and services. At its best, it provides strategic advantage and economic
value

Numerical control

Numerical control (also computer numerical control, and commonly called CNC) is
the automated control of machining tools (such as drills, boring tools, lathes) and 3D
printers by means of a computer. A CNC machine processes a piece of material (metal,
plastic, wood, ceramic, or composite) to meet specifications by following a coded
programmed instruction and without a manual operator.

A CNC machine is a motorized manoeuvrable tool and often a motorized manoeuvrable

platform, which are both controlled by a computer, according to specific input instructions.
Instructions are delivered to a CNC machine in the form of a sequential program of machine
control instructions such as G-code and M-code, then executed. The program can be written
by a person or, far more often, generated by graphical computer-aided design (CAD)
software. In the case of 3D printers, the part to be printed is "sliced", before the instructions
(or the program) is generated. 3D printers also use G-Code.

CNC is a vast improvement over non-computerized machining that must be manually

controlled (e.g. using devices such as hand wheels or levers) or mechanically controlled by
pre- fabricated pattern guides (cams). In modern CNC systems, the design of a mechanical
part and its manufacturing program is highly automated. The part's mechanical dimensions
are defined using CAD software and then translated into manufacturing directives by
computer-aided manufacturing (CAM) software. The resulting directives are transformed (by
"post processor" software) into the specific commands necessary for a particular machine to
produce the component, and then are loaded into the CNC machine.

17
Future of Manufacturing Industry Post COVID – 19

The intensity of spread of the global COVID-19 crisis has baffled nations worldwide. Most
nations have been caught completely off guard as the healthcare systems around the world
have dwindled and the authorities have scrambled to keep people from strolling outdoors.
The coronavirus crisis has also come as a heavy blow to the already struggling world
economy. Stock markets around the world have plummeted to one of the lowest levels.

Our focus should be to ensure that the losses are minimized, and future strategies be devised
according to the fast-changing global dynamics. As the saying goes that “there is light at the
end of every tunnel”, every crisis brings its own set of opportunities. Fresh numbers suggest
that the manufacturing activity in India has dropped to near zero levels. However, on the
contrary this pandemic has the potential to pave India's much anticipated way into the
Manufacturing Sector

For decades now, our neighbour China has been the factory of the world accounting for about
a third of all products manufactured on the planet. India has also tried in the past to boost its
manufacturing sector by trying to pursue foreign investments but so far, our sincere efforts
have tasted limited success. Now with the global dynamics shifting due to the novel
coronavirus crisis, conditions are ripe and if India play its cards right then it can dramatically
reverse its fortunes in the decades to come.

18
2.2 COMPANY PROFILE

DECON Technologies is an ISO 9001 2015 certified Global Sourcing Partners located at
Vadodara, Gujarat in association with world class Investment and Sand-casting Foundry. The
company have two state of the art in house manufacturing facility utilizing precision
machinery and equipment for production and inspection. DECON Technologies supply
Variety of high precision critical components for various sector like Oil & Gas, Power,
Chemical & Process Industry which are custom-made to exact specification and expectations
of our Customers. They have a customized pressure test facility to hydro test the components.

Decon Technologies was co- Founded by Mr. V Ramachandran and Mr. Subrat De. Mr. V
Ramachandran is a mechanical engineer with over three decades of experience in business
development, product application engineering and International business. He has worked with
Tyco Flow Control (Anderson-Greenwood/Crosby) and Weir Flow Control (Sarasin –
RSBD).

Mr. Subrat De is a Mechatronics engineer with upward of two decades of experience in

Project Planning, Six Sigma & Lean, operation management, global supply chain
Management, technology and product transfer from USA and UK to Best Cost Country. He is
black belt certified -USA in Six Sigma & Lean and has worked with global organizations
such as Flowserve, Weir Flow Control, T D Williamson Inc.

19
VISION, MISSION & VALUES

Decon Technologies is a trusted Manufacturing and engineering service provider with a hard-
earned reputation for quality services and complete customer satisfaction. The company has
proven its expertise in supporting industries requiring increasing level of technical
specialization.

VISION

‘To have a positive impact on the lives of our customers and our Team.’

MISSION

‘To help every customer have a positive memorable experience.’

VALUES

‘To be open, honest and fair. Whatever we do, we do it right and we do it together.’

COMMITMENT & PURPOSE

DECON Technologies aims to develop a strong and long-term partnership with clients and
vendors by ensuring the highest standard of quality in manufacturing, Engineering and other
services. They endeavour to provide highest quality while keeping the cost low. They provide
the commitment to support the customers with technology driven, cost effective, quality
compliant manufacturing solution.

20
TEAM AT DECON

The team at DECON Technologies have a combined Valve Industry experience excess of
60 years. The team comprises of Leaders from Global Engineered valve companies with
experience in Control, Safety and Isolation. Employees with technical competency with
good expertise on commercial & technical aspects Valve manufacturing Industry
environment make the team at DECON technologies efficient. Apart from technical
expertise the company also has people with exceptional relationship management skills
with ability to relate to people at various level of business globally. The team focus
mainly on Product Management and Application Engineering. Decon Technologies is a
successfully established Global sourcing centre for various high precision components
and assemblies for various sector like Power, Oil & Gas, Chemical & Process Industry.

MANUFACTURING
DECON technologies provides a variety of services to customers. Under manufacturing, they
provide:
 Investment casting, Sand casting, Pressure die casting, Centrifugal casting,
 Forging components (Non alloy steel, Alloy steel, Stainless steel, High chromes steel)
 High precision Machined components.
 Fabrication parts
 Special plate components.
 Rubber and moulded parts.

21
ENGINEERING

DECON Technologies also provides engineering services:

 Product development
 Process Improvement
 Sub Assembly

GLOBAL SOURCING

 Supply chain
 Engineering and marketing

22
SERVICES

CNC Manufacturing offers machining services with consistence high quality result for large
components including CNC milling and turning services for power, oil and gas, chemical,
heavy construction, hydroelectric and general industries. Be it prototype or production run,
small to large size and expertise Decon Technologies can cater to the requirements with
speed and efficiency.

23
IDUSTRIES SERVED

The Manufacturing, Engineering, Supply chain and Service aspect of DECON Technologies
serve a number of industries. Their products are predominantly aimed at the following:

 Petrochemical
 Pulp & Paper
 Refining
 Fossil Power
 Oil & Gas Production
 Chemical
 Fertilizer
 Pharmaceutical

24
Journey till Date:

 Company was Incorporated in July 2013 in Bangalore.

 Relocated operations to Vadodara in 2015.

 First order was a 108’’ gate valve parts for Blackhall UK Feb 2016.

 A new Head office at Signet Hub Vadodara on 15th April 2016

 WEIR France contract for development of sec 1 safety valves April 2016.

 New account WEIR Malaysia added 2017.

 Plant operation started on Feb 2017.

 ISO certification from TUV Aug2017.

 ERP go live NOV 2017 phase II upgrade in progress.

 2000+ variation parts supplied to various international customers.

 New factory under construction at GIDC Vadodara completion by July 2020.

 KCDBV instrument valve development in progress by sept 2020.

 DECON UK Drain Valve project Dec 2020.

25
2.3 PRODUCT PROFILE:

MACHINED CASTINGS

 Investment Casting
 Sand Casting
 Pressure Die casting
 Centrifugal Casting

MATERIAL

Carbon and low alloy steel:

WCB, WCC, WCA, CA15, CA40, CA28MWV, 16MnCr5, SAE 8620, A732 Gr1A, LCB,
1.7225, ST-37, 1.0619, WC6, EN31, 1.7020, EN353, LCC, C5, SUH-4, BS 3146 Cl 10 etc.
Stainless Steel:

CF8, CF8M, CF3, CF3M, CF16Fa, 1.4408, 1.4552, CG8M, 1.4581, F745-07
ISO5832 etc.
Duplex Stainless steel:

CN3MN, CD4MCuN, CD3MWCuN, CD6MN, 1.4462, CE3MN, CK3MCuN, CD3MN etc.

Alloy Steel:

CN7M, Monel M-35-1, Monel M-30-H, Hastelloy `B`, Hastelloy -`C`, Stellite, CZ-100, CW-
2M, Co-Cr-Mo etc.

26
MACHINED FORGINGS

NON -ALLOY STEEL

 SAE 1018,1020, 1541, 1527, ST52.3, A105 etc
ALLOY STEEL
 AISI 4130,4140,4145,8620, 16 nCr5,20MnCr5,40CrMo4,19CrNi4
STAINLESS STEEL
 SS410, 316L,304, 17PH
HIGH CHROME STEEL
 1Cr, 13CrSteel as per API 5CT.
 All types of flanges in stainless steel grades 304L/316L/DIN 1.4541 and 1.4571.

MACHINED PARTS

 Have capabilities in high volume runs as well as lower volume production single spindle
production together with a complete array of secondary operations.
 Has extensive machining experience with a variety of steel materials, tolerances, complex
features and finishes allows us to provide quick turnaround.
 Makes steel components for a variety of applications in Power, Oil and Gas industry.

27
Primary Equipment:

 CNC turning centre, Vertical machining centre with 4 axis machining capability
 Secondary Operations Available: Grooving, Drilling, Broaching, Milling, Knurling, Roll
Threading, Chucking, Rotary Transfer Operations, Slotting, Reaming, Grinding Tapping,
Welding, Heat Treatment and a variety of plating
 Materials: 303, 304, 304L, 316, 316L, 420, 17-4 PH, Inconel, Monel, Hastelloy &
Titanium Special Materials including: Specialty Steel.

RUBBER AND MOULDED PARTS

1. V Packings
2. U packings
3. O rings and Back up rings
4. Shaft Seal
5. 7. Packing Rings
6. Gaskets etc
7. Guide Rings
8. Wiper Seal

DRAIN VALVE

Supplies both globe style and ball style drain valves for high pressure and high temperature
steam systems. The function of the valve is to drain unwanted condensate from
superheated steam pipelines.

Applicable design codes include ASME B16.34, EN 12516, and Indian Boiler Regulations
(IBR)

28
Valve bodies are made from forged materials such as A105, F22, F91 and F92 suitable for
temperatures up to 650°C, and pressures up to 775 bar @ 38°C

Drain Valves are supplied with butt weld or socket weld end to meet customers’ requirements
up to 4” (DN 100) pipe sizes.

Valve operation can be manual, pneumatic or electric depending on customer requirements.

2. 4 ORGANIZATIONAL CHART

Chart 2.4.1

29
CHAPTER lll

30
3.1 Human Resources
HR has several important functions in the organization. These include recruitment,
performance management, learning and development. Human Resource
Management (HRM or HR) is the strategic approach to the effective management of people
in a company or organization such that they help their business gain a competitive advantage.
It is designed to maximize employee performance in service of an employer's strategic
objectives. Human resource management is primarily concerned with the management of
people within organizations, focusing on policies and systems. HR departments are
responsible for overseeing employee-benefits design, employee recruitment, training and
development, performance appraisal, and reward management, such as
managing pay and benefit systems. HR also concerns itself with organizational
change and industrial relations, or the balancing of organizational practices with requirements
arising from collective bargaining and governmental laws.

The overall purpose of human resources (HR) is to ensure that the organization is able to
achieve success through people. HR professionals manage the human capital of an
organization and focus on implementing policies and processes. They can specialize in
finding, recruiting, training, and developing employees, as well as maintaining employee
relations or benefits. Training and development professionals ensure that employees are
trained and have continuous development. This is done through training programs,
performance evaluations, and reward programs. Employee relations deals with the concerns
of employees when policies are broken, such as cases involving harassment or discrimination.
Managing employee benefits includes developing compensation structures, parental leave
programs, discounts, and other benefits for employees. On the other side of the field are HR
generalists or business partners. These HR professionals could work in all areas or be labour
relations representatives working with unionized employees.

HR is a product of the human relations movement of the early 20th Century, when
researchers began documenting ways of creating business value through the strategic
management of the workforce. It was initially dominated by transactional
work, such as payroll and benefits administration, but due to globalization, company
consolidation, technological advances, and further research, HR as of 2015 focuses on
strategic initiatives like mergers and acquisitions, talent management, succession planning,
industrial and labour, and diversity and inclusion. In the current global work environment,
most companies focus on lowering employee turnover and on retaining the talent and

31
knowledge held by their workforce.

32
New hiring not only entails a high cost but also increases the risk of a new employee not
being able to adequately replace the position of the previous employee. HR departments
strive to offer benefits that will appeal to workers, thus reducing the risk of losing employee
commitment and psychological ownership.

1. Human resource planning

The first function of HR is all about knowing the future needs of the organization.
What kind of people does the organization need, and how many? Knowing this will
shape the recruitment, selection, performance management, learning and
development, and all other HR functions. Human resources planning is similar to
workforce planning. Both focus on where the organization is today and what it needs
to be successful in the future.

2. Recruitment and selection

The second HR function involves attracting people to work for the organization and
selecting the best candidates. Attracting people usually starts with an employee brand.
Being an attractive employer has plenty of advantages – just as it is the other way
around. With a strong employer brand and the right sourcing strategies, the company
is already halfway there. Once candidates apply, selection is an HR instrument to pick
the best qualified and highest-potential candidates. Technological developments in
recruitment have gone very fast and as a result, there are different types of recruitment
tools for each part of your recruitment funnel.

3. Performance management

Performance management is essential in ensuring that workers stay productive and

engaged. Good performance management involves good leadership, clear goal-
setting, and open feedback. Performance management tools include the (bi)annual
performance review, in which the employee is reviewed by his/her manager. It also
includes 360- degree feedback tools in which peers, managers, subordinates, and
sometimes even customers review the employee’s performance. These kinds of tools

33
can be very helpful

34
 in providing feedback. Performance management is also an instrument to close the
gap between the workforce you have today and the one you want to have tomorrow.
One of the best ways to build your future workforce is through learning and
development (L&D).

4. Learning and development

Enabling employees to develop the skills they need for the future is an essential
responsibility for HR. This is also related to the first HR function we listed, in which
HR bridges the gap between the workforce today and the workforce needed in the
near future. Traditionally, organizations have a set budget for learning and
development. This budget is then distributed among its employees. In some countries,
this fee is mandatory. In the UK, for example, companies with an annual pay bill of
more than £3 million pay a mandatory rate of 0.5% designated for the professional
education of their employees.

5. Career planning

The fifth function of HR is career planning, guidance, and development for

employees, together also referred to as career pathing. Showing employees how their
personal ambition can align with the future of the company helps to engage and retain
them. For the organization, there are the benefits of better succession planning, higher
productivity, and a stronger employer brand. HR professionals first need to take a
look at the jobs within a company. They must then chart a course through jobs or
departments meant to lead an employee to a position. That in of itself is challenging.

paths may require:

 Lateral moves, department transfers, or promotions

 Must develop skills and offer the employee development opportunities to gain
experience
 Coaching and mentoring will help.
6. Function evaluation

35
 Function evaluation is a more technical role of HR that involves comparing various
functions in terms of qualification, the quality, and availability of workers, job
location, working times, the economic situation, job responsibility, and how much
value this job adds to the organization. The idea behind function evaluation is that
similar jobs should be rewarded similarly.

7. Rewards

Rewarding employees for their work is a function that is impossible to miss. Rewards
include salary but also growth and career opportunities, status, recognition, a good
organizational culture, and a satisfying work-life balance. The total rewards
framework shows that rewards are more than just money. They can also be relational
and psychological outcomes. For example, fantastic colleagues and meaningful work
are also rewarding to employees. The monetary reward of the job consists of financial
rewards and other (secondary) benefits.
Rewards are thus much more than just financial. Here is a non-exhaustive overview of
total rewards:
 Base salary

 Performance-based-pay

 Bonuses

 Social environment

 Job security

 Status

 Alternating work

 Autonomy

 Growth opportunities

 Feedback

 Formal and informal development opportunities

8. Industrial relations

36
 Another function of HR is maintaining and cultivating relationships with labour
unions and other collectives, and their members. Maintaining good relations with
unions will help to spot and resolve potential conflicts quickly and will also be
beneficial in more difficult economic times when layoffs or other actions are required

9. Employee participation and communication

According to Dave Ulrich, one of the key roles of HR is to be a credible activist for
the employees. Employees need to be informed and heard on different topics that are
relevant to them. Communication relates to spreading information relevant to
employees.

10. Health and safety

HR plays an important role in creating and implementing health and safety

regulations. Making these regulations part of the company culture is one of the main
functions of HR.

11. Personal wellbeing

HR has a function in assisting and taking care of employees when they run into
personal problems. Personal wellbeing is about supporting employees when things
don’t go as planned. Wellbeing is often misunderstood and miscommunicated, largely
because of limited literature and its subjective nature. Employers commonly approach
wellbeing as a firefighting measure. For example, they see a dip in employee morale
in the latest internal survey and HR reacts with ad hoc wellbeing initiatives to get
their numbers back up. Wellbeing shouldn’t be a reactive measure; it should be
proactive and strategically implemented. HR needs to taking steps to understand the
issues faced by employees and their organization and then back it by investing in the
right areas.

37
12. Administrative responsibilities

The final function of HR is its administrative responsibility. These include personnel

procedures and Human Resource Information Systems. Personnel procedures involve
the handling of promotions, relocations, discipline, performance improvement, illness,
regulations, cultural and racial diversity, unwanted intimacies, bullying, and so on.
For each of these situations, policies and procedures need to be developed and
followed to successfully comply with the requests, or overcome these challenges.

38
 3.2 Accounting and stores

Accounting and stores at the company handles multiple functions. The department
consists of 5 employees.
Accounting is the process of recording financial transactions pertaining to a business.
The accounting process includes summarizing, analysing and reporting these
transactions to oversight agencies, regulators and tax collection entities. The financial
statements used in accounting are a concise summary of financial transactions over an
accounting period, summarizing a company's operations, financial position and cash
flows.

1. Billings.
A billings group assembles information from the shipping and customer order
departments to create invoices that are sent to the company's customers.

2. Budgeting.
The department assists the rest of the company with the formulation of a company-
wide budget, which is used to plan for expenditures in the coming year, including
the purchase of fixed assets.

3. Collections.
The accounting department is responsible for keeping track of overdue invoice
payments from customers, and uses a variety of methods to extract payment from
them, including dunning letters, phone calls, and attorney letters.

4. Financial statements.
A reporting group within the department creates adjusting journal entries to bring
the company's initial financial results into compliance with the applicable
accounting framework, writes footnotes to accompany the financial statements, and
releases financials following the end of each reporting period.

39
5. Internal reporting.
A cost accounting staff can provide considerable value by calculating the
profitability of various products, product lines, services, customers, sales regions,
stores, and so forth. The areas of analysis may change on a regular basis, so that
management can view different aspects of the business, with an emphasis on
improving financial results.

6. Payables.
The payables staff collects supplier invoices and employee expense reports, verifies
that the billed amounts are authorized for payment, and issues payments to
recipients on scheduled payment dates. These employees also watch for early
payment discounts, and take the discounts if it is economical to do so.

7. Payroll.
A specialized group collects time worked information from employees, as well as
pay rate information from the human resources department, calculates tax and other
deductions from employee pay, and issues net pay amounts to employees, either in
cash or via checks, pay cards, or direct deposit.

8. Taxes.
A specially-trained group of accountants estimates the amount of taxable income
that the business is likely to generate, and periodically remits income tax payments
to the government, based on this estimated amount. The tax group also issues tax
filings in a number of other areas, such as franchise taxes, sales taxes, use taxes,
and property taxes.

40
3.3 Marketing/customer relation

Marketing is the action or business of promoting and selling products or services, including
market research and advertising. The 'marketing concept' proposes that to complete its
organizational objectives, an organization should anticipate the needs and wants of potential
consumers and satisfy them more effectively than its competitors.

Marketing is defined by the American Marketing Association as "the activity, set of

institutions, and processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large". The term developed
from the original meaning which referred literally to going to market with goods for sale.
From a sales process engineering perspective, marketing is "a set of processes that are
interconnected and interdependent with other functions of a business aimed at achieving
customer interest and satisfaction".

Philip Kotler defined marketing as "Satisfying needs and wants through an exchange
process". and a decade later defines it as "a social and managerial process by which
individuals and groups obtain what they want and need through creating, offering and
exchanging products of value with others".

The Chartered Institute of Marketing defines marketing as "the management process

responsible for identifying, anticipating and satisfying customer requirements profitably". A
similar concept is the value-based marketing which states the role of marketing to contribute
to increasing shareholder value. In this context, marketing can be defined as "the
management process that seeks to maximise returns to shareholders by developing
relationships with valued customers and creating a competitive advantage".

In the past, marketing practice tended to be seen as a creative industry, which

included advertising, distribution and selling. The process of marketing is that of bringing a
product to market, which includes these steps: broad market research; market targeting
and market segmentation; determining distribution, pricing and promotion strategies;
developing a communications strategy; budgeting; and visioning long-term market
development goals. Many parts of the marketing process (e.g. product design, art
director, brand management, advertising, inbound marketing, copywriting etc.) involve use of
the creative arts.

41
B2B marketing
B2B (business-to-business) marketing refers to any marketing strategy or content that is
geared towards a business or organization. Any company that sells products or services to
other businesses or organizations (vs. consumers) typically uses B2B marketing strategies.

Examples of products sold through B2B marketing include:

 Major equipment
 Accessory equipment
 Raw materials
 Component parts
 Processed materials
 Supplies
 Business services

The four major categories of B2B product purchasers are:

 Producers- use products sold by B2B marketing to make their own goods.
 Resellers- buy B2B products to sell through retail or wholesale establishments.
 Governments- buy B2B products for use in government projects
 Institutions- use B2B products to continue operation

Being a highly specialized company, marketing methods are mostly non – traditional.
Advertising to the mass public or on social media platforms is not really feasible or
rewarding when it comes to Decon Technologies.
The marketing department is handled by Mr. Ramachandran Vasudevan, one of the
Directors of Decon Technologies. Decon Technologies does capability-based
manufacturing and performs targeted marking specifically to their potential clients. The
unique selling point of Decon Technologies is their technical competence. They rely on
word of the mouth, and their past work and reference from previous clients for their
marketing. The Marketing department also handles customer relations. Since the nature of
the work is sensitive, Even sending a proposal includes many formalities, the most
notable of which is an NDA. Though legal in nature, this comes under customer relations
and is handled under this department.

42
3.4 Production/Operation
Production department is one of the most established departments in Decon Technologies.
The operations and Manufacturing part or the post phase comes under Mr. Subrat De, one of
the Directors of the company.

Their major expertise lies in the following:

 Steel casting – Investment and Sand casting

Investment casting is an industrial process based on lost-wax casting, one of the oldest
known metal-forming techniques. The term "lost-wax casting" can also refer to
modern investment casting processes.

Investment casting has been used in various forms for the last 5,000 years. In its
earliest forms, beeswax was used to form patterns necessary for the casting process.
Today, more advanced waxes, refractory materials and specialist alloys are typically
used for making patterns. Investment casting is valued for its ability to produce
components with accuracy, repeatability, versatility and integrity in a variety of
metals and high- performance alloys.

Sand casting, also known as sand molded casting, is a metal casting process
characterized by using sand as the mold material. The term "sand casting" can also
refer to an object produced via the sand-casting process. Sand castings are produced
in specialized factories called foundries.

 Forgings
Forging is a manufacturing process involving the shaping of metal using
localized compressive forces. The blows are delivered with a hammer (often a power
hammer) or a die.

 Machined parts
Machining is any of various processes in which a piece of raw material is cut into a
desired final shape and size by a controlled material-removal process. Machining is a
part of the manufacture of many metal products. Much of modern-day machining is
carried out by computer numerical control (CNC), in which computers are used to
control the movement and operation of the mills, lathes, and other cutting machines.

43
 This increases efficiency, as the CNC machine runs unmanned therefore reducing
labour costs for machine shops.

 Fabricated parts
Metal fabrication is a manufacturing process used to shape metal into parts or end
products. a number of techniques can be used to shape sheet metal into a part or good.
metal fabrication can also create large runs of customized fabricated metal products.
These projects usually include the design and fabrication of customized metal parts to
fit a business’ needs.

 Sub assembly
Collection of parts put together as a unit, to be used in the making of a larger
assembly or a final or higher item. What may be a subassembly at one point, however,
may be an assembly at another. It is an assembled unit designed to be incorporated
with other units in a finished product.

 New Product Development

In business and engineering, new product development (NPD) covers the complete
process of bringing a new product to market. A central aspect of NPD is product
design, along with various business considerations.

 Engineering Services
Engineering services" means any service or creative work, the adequate performance
of which requires engineering education, training and experience in the application of
special knowledge of the mathematical, physical and engineering sciences to
such services or creative work as consultation, investigation, evaluation.

 Valve- Over hauling, Repair and calibration

Very few valves are manufactured without at least some modification to meet the
customer’s requirements. However, some valves are so specialised that it makes it
hard to get a replacement within a reasonable timeframe. Some valves will be
outdated and no longer manufactured, making it more practical and cost-effective to
overhaul the existing one – even if this requires a complete shutdown. On the
other hand, some
44
 valves may not be obsolete, but the owners cannot justify the purchase of a new one.
For example, they may not feel that the value of a direct replacement will be fully
realised and prefer to overhaul the existing one. On long-term applications, the
operating conditions can change significantly compared with those when the
equipment was originally specified. This can leave them with insufficient time to
specify and purchase new equipment, making an overhaul their only realistic option.

 Refurbished valves
Replacing poorly performing valves can be expensive and not always necessary. Up
to 90% of all valves can be refurbished at considerable savings when compared to
purchasing a new unit. The client on average saves 40% in comparison to the cost of a
new valve.

45
Precision Machined parts
Decon Technologies have capabilities in high volume runs as well as lower volume
production, single spindle production together with a complete array of secondary operations.
They have extensive machining experience with a variety of steel materials, tolerances
complex features and provides quick turnaround. The primary Equipment used is CNC
turning center, vertical machining Centre with 4 axis turning facility, Horizontal machining
Centre with automatic pallet changer and Electro spindle.

Table 3.4.1

46
 Table 3.4.2

3.5 Quality/Testing/Inspection
Quality control (QC) is a process by which entities review the quality of all factors involved
in production. ISO 9000 defines quality control as "A part of quality management focused on
fulfilling quality requirements". Inspection is a major component of quality control, where
physical product is examined visually (or the end results of a service are analysed). Product
inspectors will be provided with lists and descriptions of unacceptable product defects such
as cracks or surface blemishes for example.

Quality control (QC) is a process through which a business seeks to ensure that product
quality is maintained or improved. Quality control requires the business to create an
environment in which both management and employees strive for perfection. This is done by
training personnel, creating benchmarks for product quality and testing products to
check for statistically significant variations. A major aspect of quality control is the
establishment of well-defined controls. These controls help standardize both production and
reactions to quality issues.

47
Quality Control Approaches

Approximate
Terminology year of first Description
use

The application of statistical methods

Statistical quality
1930s (specifically control charts and acceptance
control (SQC)
sampling) to quality control

Popularized by Armand V. Feigenbaum in

a Harvard Business Review article and book of
Total quality control the same name.[10]; stresses involvement of
1956
(TQC) departments in addition to production (e.g.,
accounting, design, finance, human resources,
marketing, purchasing, sales)

The use of control charts to monitor an individual

Statistical process industrial process and feedback performance to
1960s
control (SPC) the operators responsible for that process;
inspired by control systems

Company-wide
quality control 1968 Japanese-style total quality control.
(CWQC)

Quality movement originating in the United

Total quality States Department of Defence that uses (in part)
1985
management (TQM) the techniques of statistical quality control to
drive continuous organizational improvement

Statistical quality control applied to business

Six Sigma (6σ) 1986
strategy; originated by Motorola

Six Sigma applied with the principles of lean

Lean Six Sigma (L6σ) 2001
manufacturing and/or lean enterprise.

Table 3.5.1

48
Decon technologies places the utmost importance on quality of the products made. Apart
from having a dedicated team to make sure of the quality, even during the manufacturing
process continuous monitoring is done at each stage to make sure strict adherence to
standard. Once the order is received, a 2D and 3D model is made. Die development is done
after which first article report is made. Other tests done include, 3 rd part verification,
destructive and non- destructive tests, and batch testing. Few other high-end tests include
Dossier Material Test and radiography test.

Table 3.5.2

49
3.6 Financial Statements Analysis

Financial statement analysis is the process of analysing a company's financial statements for
decision-making purposes. External stakeholders use it to understand the overall health of an
organization as well as to evaluate financial performance and business value. Internal
constituents use it as a monitoring tool for managing the finances. The financial statements of
a company record important financial data on every aspect of a business’s activities. As such
they can be evaluated based on past, current, and projected performance. Several techniques
are commonly used as part of financial statement analysis. Three of the most important
techniques include horizontal analysis, vertical analysis, and ratio analysis. Horizontal
analysis compares data horizontally, by analysing values of line items across two or more
years. Vertical analysis looks at the vertical affects line items have on other parts of the
business and also the business’s proportions. Ratio analysis uses important ratio metrics to
calculate statistical relationships.

Financial statements are maintained by companies daily and used internally for business
management. In general both internal and external stakeholders use the same corporate
finance methodologies for maintaining business activities and evaluating overall financial
performance.

When doing comprehensive financial statement analysis, analysts typically use multiple years
of data to facilitate horizontal analysis. Each financial statement is also analysed with vertical
analysis to understand how different categories of the statement are influencing results.
Finally, ratio analysis can be used to isolate some performance metrics in each statement and
also bring together data points across statements collectively.

Balance Sheet:

The balance sheet is a report of a company's financial worth in terms of book value. It is
broken into three parts to include a company’s assets, liabilities, and shareholders' equity.
Short-term assets such as cash and accounts receivable can tell a lot about a company’s
operational efficiency. Liabilities include its expense arrangements and the debt capital it is
paying off. Shareholder’s equity includes details on equity capital investments and retained
earnings from periodic net income. The balance sheet must balance with assets minus
liabilities equalling shareholder’s equity. The resulting shareholder’s equity is considered a
company’s book value.
50
This value is an important performance metric that increases or decreases with the financial
activities of a company.

Table 3.6.1

Income Statement:

The income statement breaks down the revenue a company earns against the expenses
involved in its business to provide a bottom line, net income profit or loss. The income
statement is broken into three parts which help to analyse business efficiency at three
different points. It begins with revenue and the direct costs associated with revenue to
identify gross profit. It then moves to operating profit which subtracts indirect expenses such
as marketing costs, general costs, and depreciation. Finally, it ends with net profit which
deducts interest and taxes.

Basic analysis of the income statement usually involves the calculation of gross profit
margin, operating profit margin, and net profit margin which each divide profit by revenue.
Profit margin helps to show where company costs are low or high at different points of the
51
operations.

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 Table 3.6.2

Cash Flow Statement:

The cash flow statement provides an overview of the company's cash flows from operating
activities, investing activities, and financing activities. Net income is carried over to the cash
flow statement where it is included as the top line item for operating activities. Like its title,
investing activities include cash flows involved with firmwide investments. The financing
activities section includes cash flow from both debt and equity financing. The bottom line
shows how much cash a company has available.

Table 3.6.3

49
Ratio Analysis

Investors and analysts employ ratio analysis to evaluate the financial health of companies by
scrutinizing past and current financial statements. Comparative data can demonstrate how a
company is performing over time and can be used to estimate likely future performance. This
data can also compare a company's financial standing with industry averages while measuring
how a company stacks up against others within the same sector. Investors can use ratio
analysis easily, and every figure needed to calculate the ratios is found on a company's
financial statements.

Ratios are comparison points for companies. They evaluate stocks within an industry.
Likewise, they measure a company today against its historical numbers. In most cases, it is
also important to understand the variables driving ratios as management has the flexibility
to, at
50
times, alter its strategy to make its stock and company ratios more attractive. Generally, ratios
are typically not used in isolation but rather in combination with other ratios. Having a good
idea of the ratios in each of the four previously mentioned categories will give a
comprehensive view of the company from different angles and help spot potential red flags.

Uses of Ratio Analysis

1. Comparisons

One of the uses of ratio analysis is to compare a company’s financial performance to similar
firms in the industry to understand the company’s position in the market. Obtaining financial
ratios, such as Price/Earnings, from known competitors and comparing it to the company’s
ratios can help management identify market gaps and examine its competitive advantages,
strengths, and weaknesses. The management can then use the information to formulate
decisions that aim to improve the company’s position in the market.

2. Trend line

Companies can also use ratios to see if there is a trend in financial performance. Established
companies collect data from the financial statements over a large number of reporting
periods. The trend obtained can be used to predict the direction of future financial
performance, and also identify any expected financial turbulence that would not be possible
to predict using ratios for a single reporting period.

3. Operational efficiency

The management of a company can also use financial ratio analysis to determine the degree
of efficiency in the management of assets and liabilities. Inefficient use of assets such as
motor vehicles, land, and building results in unnecessary expenses that ought to be
eliminated. Financial ratios can also help to determine if the financial resources are over- or
under-utilized.

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NET PROFIT RATIO

Formula: NPR = (NET PROFIT ÷ NET SALES) X 100

The net profit percentage is the ratio of after-tax profits to net sales. It reveals the
remaining profit after all costs of production, administration, and financing have been
deducted from sales, and income taxes recognized. As such, it is one of the best measures
of the overall results of a firm, especially when combined with an evaluation of how well
it is using its working capital. The measure is commonly reported on a trend line, to judge
performance over time. It is also used to compare the results of a business with its
competitors. Net profit is not an indicator of cash flows, since net profit incorporates a
number of non-cash expenses, such as accrued expenses, amortization, and depreciation.
The formula for the net profit ratio is to divide net profit by net sales, and then multiply
by 100.

Year Net Profit (in cr) Sales NPR

2016 6.97 165.44 4.2
2017 6.54 186.88 3.5
2018 6.54 220.7 3.0
2019 3.45 242.53 1.4
2020 5.27 213.67 2.5

Table 3.6.4

Chart 3.6.1

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Gross Profit Ratio

Formula: G PR = (GROSS PROFIT ÷ NET SALES) X 100

Gross profit is very important for any business. It should be sufficient to cover all expenses
and provide for profit. There is no norm or standard to interpret gross profit ratio (GP ratio).
Generally, a higher ratio is considered better. The ratio can be used to test the business
condition by comparing it with past years’ ratio and with the ratio of other companies in the
industry. A consistent improvement in gross profit ratio over the past years is the indication
of continuous improvement. When the ratio is compared with that of others in the industry,
the analyst must see whether they use the same accounting systems and practices.

Year COGS(Cr) Sales (Cr) Gross Profit GPR

2016 151.86 165.44 13.58 8.2

2017 173.27 186.88 13.61 7.3

2018 208.92 220.7 11.78 5.3

2019 234.03 242.53 8.5 3.5

2020 203.8 213.67 9.87 4.6

Table 3.6.5

GPR

Chart 3.6.2

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Expenses Ratio

Formula: OER = EXPENSES / SALES

The operating expense ratio (OER) is a measurement of the cost to operate a piece of
property compared to the income brought in by the property. It is calculated by dividing a
property's operating expense (minus depreciation) by its gross operating income and is used
for comparing the expenses of similar properties. An investor should look for red flags, such
as higher maintenance expenses, operating income, or utilities that may deter him from
purchasing a specific property.

Year Expenses (Cr) Sales (Cr) ER

2016 151.86 165.44 0.92

2017 173.27 186.88 0.93

2018 208.92 220.7 0.95

2019 234.03 242.53 0.96

2020 203.8 213.67 0.95

Table 3.6.6

Chart 3.6.3

54
Liquidity Ratio

Formula: LIQUIDITY RATIO = CURRENT ASSETS / CURRENT LIABILITIES

Liquidity ratios are an important class of financial metrics used to determine a debtor's ability
to pay off current debt obligations without raising external capital. Liquidity ratios measure a
company's ability to pay debt obligations and its margin of safety through the calculation of
metrics including the current ratio, quick ratio, and operating cash flow ratio. Current
liabilities are analysed in relation to liquid assets to evaluate the coverage of short-term debts
in an emergency.

Year Current Assets (Cr) Current Liabilities (Cr) LR

2016 63.18 55.67 1.13

2017 65.26 52.24 1.25

2018 80.26 64.79 1.24

2019 75.83 66.87 1.13

2020 83.32 70.98 1.17

Table 3.6.7

LR

Chart 3.6.4

55
 Net Working Capital Ratio

Formula: Net Working Capital Ratio = (Current Assets - Current Liabilities)/Total

Assets.

Net working capital represents the cash and other current assets after covering liabilities that
a company has to invest in operating and growing its business. In other words, it represents
that funds an entity has to cover short-term obligations, such as payroll, rent, and utility bills.

Year Current Assets Current Liabilities Total Asset NWCR

2016 63.18 55.67 129.79 0.0579

2017 65.26 52.24 135.86 0.0958

2018 80.26 64.79 152.35 0.1015

2019 75.83 66.87 145.69 0.0615

2020 83.32 70.98 154.56 0.0798

Table 3.6.8

Chart 3.6.5

56
Chapter IV

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4.1 Findings

 Decon Technologies is a perfect example of “Make in India”. Companies as

specialized as Decon technologies are a true testament to the technological
development of our country.

 Through technological expertise and persistence, Decon Technologies has found a

space for itself in the Industry.

 One of the most visible reasons for success of the company are the talented and highly
skilled experts and workforce. The Directors heading the company have a wealth of
experience in the field which marks the strong foundation the company was built on.

 Despite being not huge in size, Decon Technologies has managed to take great strides
ahead in their field of work as mentioned in the “Journey till date” of the report.

 Being a highly specialized company, many of the mainstream concepts of

management do not apply to Decon Technologies. Yet, the company functions
seamlessly especially in the marketing department considering no method of
conventional marketing works in this case.

 The production department of the company is equipped with newest technology and
in- house production capability.

4.2 Suggestions

 The company can make more attempts to build a better social media presence.

 The company can initiate a CSR program.

 The company can Extend its CSR arm to start a program for School students in the
field of science.

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4.3 SWOT Analysis

Strength
Weakness
 Strong Technical competency  Lack Of brand awareness
 Goodwill  Lack of expansion to
other parts of India
 Experienced Leaders

 Talented Employees

 Skilled Workforce

Opportunity Threat
 Can open multiple factories  Aggressive competition.
in India and Outside India.
 Threat of emergence
 Can capitalize on the ‘Make
of companies with
in India’ Boom.
 Opportunity to expand to mass production
other technical
capabilities.
manufacturing areas.

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4.4 Conclusion

The study of organizational structure of Decon Technologies was conducted for the summer
Internship subject of the third Semester of the MBA program of SRM IST Ramapuram. The
study was aimed at getting a holistic understanding of the workings of an organization.
Getting an overall picture after the first year of study provides a strong base for the
specializations that taken in the second year.

Manufacturing industry was chosen in order to make sure that every aspect of management
could be covered in the study. A detailed study of Decon technology was conducted which
helped in a thorough understanding of a real-life organization within the limits of a virtual
internship. Even though the Global Pandemic prevented from an organizational visit, the
study was still conducted with the aim of getting the best picture possible with available
resources.

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