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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD.

Prepared by Sandeep Nair

INTRODUCTION
The main aim of organizational study is familiarization & in depth knowledge of the functioning of various departments. For this purpose a study has been carried out in Kerala Automobiles Ltd. The KAL has primary position to auto industry. For that purpose a study has been carried out in Kerala Automobiles Ltd. The KAL has a decent position in the auto industry which manufactures three wheelers with high power, fuel efficiency, strong chassis, metal body, high load carrying capacity, and with trouble free operation. The better the organization greater will be the achievement of common objective. Organization structure is an indispensible means to the end of business performance. This fact makes appropriate a thorough organization study of an industrial unit. 1.1 1.2

Objectives Of The Study Getting organizational exposure. To see and understand the actual working condition of an organization. To understand the organization on the basis of departmentation. To understand the functions of each and every departments. To look in to the working conditions of the employees in an organization. To learn the basic HR functions in the organization. To make the evaluation about the performance of the organization. To know about the organizational objective and scope. To know the extend with which management theories matches with the practice. To do the SWOT analysis of the company. To suggest recommendations for improving the overall performance of the organization. To get clear view of the day to day functioning of the industrial establishment. Scope Of The Study To study working environment To study the employer-worker relationship. To study the profit making of the organization. How man, material, money influence on the achievement of company. To learn the HR functions of the organization.
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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

To learn the Industrial Relations functions in the company. Methodology

1.3

The study the study pays more attention on the process that takes place in the various departments of KAL, organizational structure and operations management of various departments of KAL. Data sources Data source is the source form where the data are collected and arranged. There are two kinds of sources. Primary source and secondary source. Primary source:- Primary data are collected for the first time. Its is obtained through the personal interview with the manager as well as some employees. Observation was systematically planned and recorded. The personal interview was direct and was a mixture of direct, structured and unstructured questions. The type observation used was structured and controlled one. The opinion of the different people may be different for a question. So, a keen observation and extraction of fact has carried out with the help of the formal authorities. Secondary data:-These are data collected from the various journals, brochures, websites, newspaper etc. The company details and data have been personally gathered from company profile, annual report documents and other published booklets. 1.4 Duration Of The Study The duration of study was one month starting from 3-5-2010 to 31-5-2010. 1.5 Limitations Of The Study Time was limited for a deep study analysis of the organization. Some personal interviews may be affected by the personal bias. Some company documents are confidential in nature. So, it was not possible to include all those items. Organizational environment was very busy, which limits the data collection, learning. All the information couldnt be involved because of this factor.

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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

2.1

INDUSTRIAL PROFILE OF AUTOMOBILES

In 1769, the self propelled vehicle was a military tractor invented by French engineer and mechanic, Nicholas Joseph Cugnot. He built a steam powered tricycle that carried 4 passengers. But in 1832-39 Robert Anderson of Scotland invented the first electric carriage. The history of the automobile begins as early as 1769, with the creation of steampowered automobiles capable of human transport. In 1806, the first cars powered by internal combustion engines running on fuel gas appeared, which led to the introduction in 1885 of the ubiquitous modern gasoline- or petrolfueled internal combustion engine. Cars powered by electricity briefly appeared at the turn of the 20th century but largely disappeared from commonality until the turn of the 21st century, when interest in low- and zero-emissions transportation was reignited. As such, the early history of the automobile can be divided into a number of eras based on the prevalent method of automotive propulsion during that time. Later periods were defined by trends in exterior styling and size and utility preferences.

Pioneer Inventors German engineer Karl Benz, inventor of numerous car-related technologies, is generally regarded as the inventor of the modern automobile. The four-stroke petrol (gasoline) internal combustion engine that constitutes the most prevalent form of modern automotive propulsion is a creation of German inventor Nikolaus Otto. The similar four-stroke diesel engine was also invented by a German, Rudolf Diesel. The hydrogen fuel cell, one of the technologies hailed as a replacement for gasoline as an energy source for cars, was discovered in principle by yet another German, Christian Friedrich Schnbein, in 1838. The battery electric car owes its beginnings to Hungarian nyos Jedlik, one of the inventors of the electric motor, and Gaston Plant, who invented the lead-acid battery in 1859.

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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

Modern Automobile Industry The automotive industry crisis of 20082010 was a part of a global financial downturn. The crisis affected European and Asian automobile manufacturers, but it was primarily felt in the American automobile manufacturing industry. The downturn also affected Canada by virtue of the Automotive Products Trade Agreement.

In 2008, with rapidly rising oil prices, industries such as the automotive industry, are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. The industry is also facing increasing external competition from the public transport sector, as consumers re-evaluate their private vehicle usage. Roughly half of the US's fifty-one light vehicle plants are projected to permanently close in the coming years, with the loss of another 200,000 jobs in the sector, on top of the 560,000 jobs lost this decade. The global automotive industry is a highly diversified sector that comprises of manufacturers, suppliers, dealers, retailers, original equipment manufacturers or OEMs, aftermarket parts manufacturers, automotive engineers, motor mechanics, auto electricians, spray painters or body repairers, fuel producers, environmental and transport safety groups, and trade unions. The automobile and automotive parts & components manufacturers constitute a major chunk of automotive industry throughout the world. The automotive manufacturing sector consists of automobile and light truck manufacturers, motor vehicle body manufacturers, and motor vehicle parts and supplies manufacturers. This sector is engaged in manufacturing of automotives and light duty motor vehicles, motor vehicle bodies, chassis, cabs, trucks, automobile and utility trailers, buses, military vehicles, and motor vehicle gasoline engines.

The Top Automaking Nations United States, Japan, China, Germany and South Korea are the top five automobile manufacturing nations throughout the world. The United States of America is the world's largest producer and consumer of motor vehicles and automobiles accounting for 6.6 million direct and spin-off jobs and represents nearly 10% of the $10 trillion

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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

US economy. Automobile is one of the important industries in the world, which provides employment to 25 million people in the world. Major Manufacturing Regions Northeastern United States and Southern Great Lakes Region, Northwestern Europe, Western Russia and the Ukraine, and Japan are the major manufacturing regions of automotive in the world. In North America, the prominent automotive manufacturing regions are New England, New York and the Mid-Atlantic, Central New York, Pittsburgh/Cleveland, Western Great Lakes, St. Lawrence Valley, Ohio and Eastern Indiana, Kanawha and middle Ohio Valley, St. Louis, the Southeastern region, Gulf Coast, Central Florida, and the West Coast. The European Union has the largest automotive production regions in the World. The key automobile manufacturing regions are United Kingdom, Rhine-Ruhr River Valley, Upper Rhine - Alsace - Lorraine region, and the Po Valley in Italy. In the Western Russian and Ukraine Region, the leading industrial regions are Moscow, the Ukraine region, the Volga region, the Urals regions, and the Kuznetsh Basin Region.

Major Segments Of Automotive Industry Auto components amount to 31.5% share of the global automobiles and components industry group's value. The global automotive component industry is highly diverse and comprises of various product segments like engine parts, drive transmission and steering parts, suspension & braking parts, electrical parts and other auto components parts. Engine Parts segment in the automotive component industry comprises of different parts like engine parts, fuel delivery system and products such as pistons, piston rings, engine valves, carburetors, and diesel-based fuel delivery systems. Engine parts form one of largest product segment of the automotive components industry and have a production share of 31%. A technology intensive segment, engine parts are moving towards improved designs for optimal fuel consumption and lesser emission. The latest trend in this sector is of outsourcing a part of the engine from vendors.

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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

Electrical Parts segment comprises of generators, starter motors and spark plugs. An important and relatively larger product segment - engine parts are gaining popularity at a faster pace in the global automotive parts & components industry. Electric start mechanism in different scooter and motorcycles is the latest concept in the automobile industry. Electrical parts sector contribute around 9% to the auto components industry. Drive Transmission and Steering Parts segment has sub segments like gears, wheels, steering systems, axles, and clutches. Having 19% share, this segment is considered the largest product segment after engine parts segment. The emergence of different leading automotive manufacturers is intensifying the competition in the sector especially for products like gears and clutches Suspension and Braking Parts segment comprises of automobile components like brakes, brake assemblies, leaf springs, shock absorbers, brake linings. Suspension and braking parts segment has around 12% share in the global auto component industry. Body and Chassis Parts segment comprises of body and chassis, sheet metal components, and plastic-molded parts. The global sourcing of automotive components comprise of chassis, frames, brakes, steering and much more has reached to US $ 185 billion in 2008-09. This product segment has 12% share in the global automotive component and parts industry. Market Forecasts Global Auto Components Forecast Value - USD billion 2004 2009 Year 2004 2005 2006 2007 2008 2009 CAGR World 3 wheeler market
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USD billion 515.5 526.2 538.9 553.4 569.1 585.9

% Growth 2.30 2.10 2.40 2.70 2.80 3.00

2004 - 2009 : 2.6%

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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

It is not only the cars, consumer vehicles and two wheelers that are sold in these various countries in large numbers, but the three wheeler market is also quite big in these nations. You will get to see innumerable three wheelers running on the roads of various Southeast Asian countries like India, Thailand, Sri Lanka, Pakistan, Philippines, Nepal, and Bangladesh etc. There are a number of reasons that have resulted into the proliferation of the three wheelers in umpteen countries. Three wheelers are quite economical in terms of manufacturing and maintenance. They have also earned huge popularity due to their easy maneuvering capabilities through the narrow lanes that are prevalent in most of the developing countries.It is not that three wheelers are used only in the developing nations.

Three Wheeler Companies You will also get to see various brands of three wheeler in different parts of US, UK and some of the European nations. Reliant and Morgan Motor Company are the two major three wheeler manufacturers in UK. One of the US based three wheeler manufacturers; ZAP has even come up with eco-friendly three wheelers that operate with battery. Bajaj Auto, Piaggio is the leading players in the three wheeler industry in most of the Southeast Asian nations. The vehicles have also given rise to the three wheeler accessory industry in many countries. It is believed that numerous people have got employed in various countries due to these three wheelers. Apart from serving the daily need of the commuters the three wheelers also play commendable role in the transportation of several commodities. Seeking the increasing demand of three wheelers, more automobile companies are considering manufacturing these vehicles.

INDIAN AUTOMOBILE INDUSTRY The automobile industry in India is the ninth largest in the world with an annual production of over 2.3 million units in 2008. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors,
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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which attracted significant India-specific investment by multinational automobile manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000 units.

Embryonic automotive industry emerged in India in the 1940s. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalization in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands

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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

2.2

COMPANY PROFILE

Kerala Automobiles Limited (KAL) incorporated in 1978 as a Government of Kerala undertaking, is set up in the picturesque back drop, 16 kilometers south of Thiruvananthapuram in a tiny village called Aralumoodu, in Neyyattinkara taluk. The Company manufactures Three Wheelers (Diesel, Petrol & CNG) suitable for passengers and goods traffic in the brand name of KERALA and are considered as most Eco-friendly vehicles. KAL started production with 164 employees where capacity of production was 52 vehicles per year. Initial technology of production was in collaboration with API Mumbai and from 1987 it has developed its own tehnology of production. KAl staretd with a production of petrol engine three wheelers from 1988 it began to produce diesel engine three wheelers.KAL is the first company to introduce diesel engine three wheelers in the country.At present company is concentrating in the diesel versions only.

The present product range comprises of Autorickshaw (Three/Six seater), Pickup/ Delivery Van, Three Wheeler Tipper of Diesel version and Pollution free CNG fitted Auto and Load carriers etc. The strong, highly motivated work force in the Technical and Management cadres are working hand in hand for the progress of the Company. The ancillary units developed by the Company around the factory complex provide livelihood for hundreds of families. Since commencement of production in 1984, the Company has manufactured and marketed more than 1,20,000 Three Wheelers. KAL has distinguished itself as a force worth reckoning in the Automobile industry in India. The Company has also exported a number of Three Wheelers to Bangladesh, Sri Lanka, Nepal, Sudan, Botswana, Nigeria, South Africa,Egypt and Guatemala (Central America). The Company could turn the corner for the first time in 1993-94 and continued to keep the same trend at a higher level. The acceptability of KAL Three Wheelers in the Third World countries speaks for its utility and quality. KAL is also manufacturing sophisticated components to be used in space programs of VSSC/ISRO.The company has the capacity to produce nearly 7500 vehicles per year.
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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

The Company is getting all kind of support from the Government of Kerala, without which it would not have been possible to achieve the present level of promising state of affairs. KAL is awarded with ISO 9001:2000 Certification envisaging total quality management (TQM). It is the unflinching faith of our customers, which has powered KAL into the path of progress and looking forward for continued patronage at a higher rank. Date of incorporation: 15th March 1978 Address & registration: Athiyanoor, Aralumoodu, Thiruvananthapuram(dist),PIN:695123 Phone & website: 2222640, www.keralaautomobilesltd.com Name of chairman: Divakaran Name of MD: K P Vijayakumar Vision To become top three wheeler manufacturer in 10 years. Mission To provide value added service and product to the customers and to earn reasonable profit. Quality Policy The management and employee are committed to develop, manufacture, market and service three wheelers enhancing customer satisfaction through a process of continual improvement of its quality management style.

Products 1) Kerala GL 400 V2 electric start chassis- Rs 76,000 2) Kerala GL 400 V2 rope start chassis Rs 74,000 3) Kerala Gl 400 V2 MX 400 electric start chassis- Rs 83,000 4) Kerala GL 400 V2 rope start - Rs 77,000 New products 1) Self start (340cc) petrol engine [CNG] 2) Self start (340cc) gas engine
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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

2.3

ORGANISATIONAL CHART

The board of directors manages the affairs of company. The government of Kerala determines the members of the board.The members are determined by the government in a conservative way. The number shall not be less than two and not more than nine. The government appoints the director including the full time directors.The directors need not hold shares. They frame policies requires for the company to achieve its goals. The managing director will execute the affairs of company through the managers in different departments. It consists of I. II. III. IV. V. Chairman Managing directors A nominee from finance department A nominee from industries department A nominee from the government

The MD is always responsible for the conduct of managers of the company subject to overall control and supervision by board of directors. The general shall be in charge of company where MD is not present. In such cases, he or she shall take decision on financial matters in consultation with financial controllers.

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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

ORGANISATIONAL HIERARCHY BOD

CHAIRMAN MANAGING DIRECTOR DEPT .GENERAL MANAGER

ASSISTANT MANAGER SENIOR ENGINEER SALES EXECUTIVE JUNIOR ENGINEER COMPUTER PROGRAMER WORKERS

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ORGANISATIONAL STRUCTURE

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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

2.4 PRODUCT PROFILE


Petrol models P1 petrol autorishaw, regular three seater (1984) P2 Newlook Autorishaw (1988) P3 petrol delivary van (1984) P4 petrol pickup van (1984) P5 petrol three wheeler chassis (1985) Diesel models D1 Diesel pick up van (1984) D2 Diesel auto trailors (1988) D3 Diesel chassis come under three models 1. 2. 4360 Chassis- Self start 4325 Shorter rope start

D5 Kerala MX 4000 D6 LGA 340 (ELECTRIC START) Current moving products Kerala MX 4000 Kerala V2 Diesel chassis ( Self & electric)

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ANALYSIS OF DEPARTMENTS AND WORKING

There are approximately 20 departments in KAL.The size of the department depends on the importance and complexity of the function of department. The various departments of KAL are as follows: 1) Human Resources Department 2) Administrative department 3) Sub-contract department 4) Research and development department 5) Purchase department 6) Finance department 7) Marketing department 8) Production department 9) Planning department 10) Machine shop department 11) Quality assurance department 12) Stores department 13) Maintenance department 14) Service and spare parts

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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

3.1

HUMAN RESOURCE DEPARTMENT

Department structure

HR DEPARTMENT

MANAGER

Asst. MANAGER

Asst. PERSONNEL OFFICER

Jr. PERSONNEL OFFICER

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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

Objectives Reduce absenteeism from 10% to 5% in the course of one year. Improve employee satisfaction by 10% using a survey of current situation at the end of one year. To enable individual employee to improve their efficiency by 5% in the course of 1 year.

Manpower planning The number of employees in an organization is decided by the number of products delivering.The Government decides the number of employees to be worked for the company to achieve the targeted production It is called Employee Sanction Strength. The capacity of the plant is 7200 units/year.i.e, 600 per month. Number of workers needed to make 1 vehicle is 20 workers per day. Employee sanction strength= 20*(600/25)=480 workers. The current sanction strength of employees of KAL is 495(shop floor wokers + managerial category) But since the current production rate is set as 300 units per month, the employee strength is maintained as 250-260. A problem that KAL facing : The 1/3rd of employees in the company are unskilled workers, who were inducted at the beginning of the ompany. Recruitement is a very carefull process to be done. Otherwise it will make unnecessary losses in future. Current manpower planning: the number of contract employees are checked based up on the production.The work is being outsourced to the outside parties, if there arises an immediate shortage.After getting the preffered output of production,the machinery is used for the manufacturing of other products like coir spinning machines etc. Its current plan is to maintain the level of production with minimum input.

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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

Recruitment and selection There are three methods of recruitment


1) Direct Recruitment 2) Employment exchange

3) Public Service Commission

1) Direct Recruitment: newspaper.

Direct recruitment is done through advertisement in

2) Public Service Commission: The post of helpers, typist, office assistants, stenos, clerical staff, drivers etc are done through PSC. Whenever there arise a need for employees on such posts, it will be reported to PSC. But there is no such recruitment in recent times since there is no need for such posts. 3) Employment exchange: This is done through the employment exchanges. This is because of the Compulsory Notification act. The required number of candidates and their qualifications are informed at the employment exchanges. The eligible candidates are recruited and selected. 4)For higher posts, there will be interview only. In the interview board, there will be members from board of directors, HR manager and the domain/subject expert sometimes as per the direction from the government. Then the merit list is published .Then fixed list is published for selected candidates.

Selection procedure The first step to selection is written test, applicable to all category of workmen. An interview is conducted for those who succeed in it. Applicants to technical post undergo a trade test also. Apprentices: Apprentices are selected from three sources. Related Instruction Centre(RIC) - To recruit ITI candidates VHSE board Central Apprentice - For graduation & B.Tech (office is at Chennai) Diploma holders are selected through supervisory development centre kalamassery.
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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

Induction An induction program will be given to all the candidates who join the KAL as a fresher. They will be provided on the job training. Most of the time, their probation period will be from six months to one year. After that, if the candidates performance is satisfactory, he will be appointed as permanent.

Training and Development After the intake of a permanent employee, he will be given training for 1 year. Permanent appointment is given after that. The training can be inside or outside the organization. During the period of training, the basic pay alone is given. After appointing the employee as permanent, he will be paid salary with all the kind of benefits. Apprentices and management trainees are appointed based on contract basis to get trained in their domain areas. They will be given stipend only.

Employee Profile Workmen re classified in to permanent workers, probationary, temporary and casual workers. At present there are 255 permanent employees.

Employees can be classified based up on two norms, they are: 1) 2) Based up on Standing order Based up on wages of employees/wage settlement.

In KAL the employees are classified up on wage segment. They are Officer category/managerial Technical category/workmen

In KAL, the employees are classified in to two categories based on wage settlement. They are : 1) Officer/managerial 2) Technical/Workmen The detailed categorization is given in the pay scale structure below Number of employees in various departments
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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

Department Sub-contract department Marketing Maintenance Store Quality Assurance Heat Treatment Tool Room Painting Assembly Fabrication Machine Shop Planning Design & Drawing Service & Spares Administration HRD Purchase Accounts General TOTAL Working time

Permanent Employees 2 8 11 15 18 2 9 26 30 55 5 7 8 14 15 12 15 4 254

Trainees 3 2 3 1 2 11

Apprentice 2 3 3 4 3 9 8 19 1 4 2 3 2 63

The working time in KAL is 8 hours per day. There are maximum 5 shifts in the company. (1) (2) (3) Executives : 9 am 5 pm Ministerial staff: 9.30 am 5 pm Workmen : 9 am-5pm (general shift) 6 am 2 pm (1st shift) 2 pm 10 pm (2nd shift) Attendance The attendance of KAL is calculated through the punching system. The employees punch their attendance card and the attendance will be registered in the server. The salary is calculated based on this. For every minute late, the belated time
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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

will be calculated and respective salary will deduct and causes loss of pay. Such exception is only for the entry time of first 30 minutes. If the employee is late more than 30 minutes, he has to take half day leave.

Wages and salary administration There are two scale of pay. They are: 1) 2) For officer segment( every 4 year revision) For workmen segment( every 5 year revision)

Stipend The trainees & apprentices are given stipend every month. Its as follows.

ITI Diploma Degree Management trainee

Rs 1440 Rs 1850 Rs 2600 Rs 3000

SALARY RELATED TERMS

Dearness allowance(DA) There are two type of DA. 1) Fixed DA /Government DA: This is for the people of the managerial category. Fixed DA varies every quarter. The current government DA is 123% of the basic scale of pay. This DA is fixed by the government and is based on the salary point scale. It is as follows: Fixed DA = (basic 123) /100

2) Variable DA: This DA is for workmen category. This is fixed by the government based on Cost of Living Index/ Consumer Price Index (CLI/CPI). Economic and Statistics Department (Trivandrum, www.ecostat.kerala.gov.in) prepares Consumer Price Index. This DA percentage varies according to the inflation every month.
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Calculating Variable DA (VDA) To calculate Variable DA the following are necessary.


1

Base Point: It is determined at pay revision and it varies at every pay revision. The current base point of KAL is 950. Indices : It is the cost of living index of the month as in CLI Points for each scale of pay. It is as follows: Basic pay scale Up to Rs 2950 Rs 2950-3500 Rs 3500-4001 Above Rs 4001 Points 3.95 4.20 4.75 4.90

2 3

Steps to calculate VDA Index of month(CLI) Base point = Result Point Result = VDA of the month Example: Base Point of KAL = 950 CLI (of February 2010 is) = 1839 Result = 1839-950 = 889 VDA of a work man having basic Rs 2950 = 889 3.95 = 3511.55 Rs VDA of a work man having basic Rs 2950 upto 3500 = 889 4.20 =3733.8 About base point: Every pay revision, the base point is merged to the basic. Here the base point is 950 and is already merged in the basic and the extra money

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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

coming is calculated by subtracting 950 from CLI. In the next pay revision, the authorities will decide up to what amount should be merged to the basic. House Rent Allowance(HRA) This is decided by the management with the understanding of labour unions. This is revised every 5 years and further change in HRA is made.The current DA rate are Work men : Rs 350 Officer category : Rs 260

Adhoc pay This is give to thoe employees who are eligible for promotion and not promoted yet even after the time bound within which they have to be promoted. When adhoc pay is added to the salary, the respective DA of adhoc pay is also given to the employee. That is adhoc pay is added to the basic salary and its DA is calculated. When he got promoted, the adhoc pay is removed and the new scale of pay to the promoted position will be given. Attendance bonus If the employee takes only one leave in the month of 26/27 working days, he will be eligible for Rs 25 attendance bonus.But if there are two leaves or loss of pay, he wont be eligible for the attendance bonus. Gratuity The employee will get 15 days salary as gratuity for one years work. The employee will eligible to receive gratuity, when he completes minimum 5 years service. As per gratuity act, in KAL while in service if any employee passes away, he will get full gratuity amount up to his retirement age.

The base for calculating PF is 26 (working days a month).The amount used to calculate gratuity is the basic pay +DA(if exists). Gratuity=15 days salary= [(basic+DA)/26] 15 (This is equal to the 4.8% of annual salary[basic + DA(if exists)])

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Gratuity amount at a particular year of service = [(basic+DA)/26] 15Number of years of service*

*- Number of years of service : More than 6 months service will be counted as full year of service. i.e; 1 year 7 months will be counted as 2 years.

Incentives Incentive is given to all the employees from top to bottom of the organization, when extra production takes place. But since the current production is limited, there is no incentive the employees. Production (vehicles) 300-325 326-350 351-510 Above 511 Amount Rs 2.00 Rs 2.50 Rs 3.00 Rs 4.00

Washing allowance: Rs 30 per month is given to work men as washing allowance. Stitching allowance: Rs 250 per year is given to workmen those who have uniform and Rs 35 for women. Risk allowance: Rs 50 per month is given to work assistants and helpers who undertake operations like painting, heat treatment, ammonia pointing welding etc. Special allowance: Rs 25 per month to senior tradesman. Shift allowance: First shift Rs.2.50 Second shift Rs 3 Shoe allowance: Administrative department provides Rs 300 as shoe allowance in every 8 months to every employee.

Provident Fund (as per PF act 1952) 12% of the salary (Basic + DA) is paid to Provident Fund account from the salary of the employee. The same amount will be provided by the employer to the PF account. The 12 % of both employee and employer is statutory. But the employee can
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voluntarily pay additional amount 12% share.

more than 12% to the PF account. But the

employer dont have to pay accordingly as the employee pays, other than employers Around 8.33% of the 12% of PF share of the employer will go to the Pension fund of the employee. The interest of the Provident Fund is 8%. An employee can take money(as loan having no interest) from PF account(employee share) twice in an year. He can also take money for education, marriage(up to 60%), home construction(up to 90%) etc. The proof of such things should be provided such as building plan, approval from authorities, engineer etc for construction, marriage certificate copy, invitation etc for marriage after the function and statement from bank etc for education. The employee may or may not repay the amount taken from the PF account (as loan).Generally there is no need to pay back the money. This loan amount is permitted from the employees share of 12% of basic salary that he pays every month. The employee cannot take money from the 12% of the employers share to PF. The account section pays the PF in the bank with the common PF account number of the company and gives the chellan to HR section. The company has its own single PF account number as whole for all the employees.Each and every individual employee has their own personal PF account numbers. The HR department prepare the list of employees with their individual PF account numbers and sends it to the PF office along with the chellan. If the monthly PF of an employee is not paid by the company, the MD of the company may get imprisonment. Leave Casual leaves Medical leave - 20 - 10 full day leave/20 half day leave

Earned leave/annual leave : The employees have the right to take 1 earned leave for every 20 working days(20:1)(based on factories act). But the management has the right to put forward attractive plans in front of the employees to motivate them. Earned leave can be encashed. The maximum number of earned leaves that can be encashed are 300 days. In KAL the earned leave ratio is as:
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Managerial category - 11:1 Workmen category -13:1

Holidays KAL follows a systematic method for deciding holidays in an year. There can be up to 13 holidays in an year. Out of these 4 days are national holidays-jan26, may1, aug15, oct2.The remaining festival holidays are decided by the management and workers committee.

Total number of leaves in an year Annual Casual Medical Holidays Week Sundays 30 20 10 13 52

________________________ TOTAL LEAVES125 /year.

Promotion opportunities and appraisal Promotional policy 50% recruitment is through direct method and the rest id through promotion. The promotional levels are: Technical Engineer, Senior engineer, Ass.manager,manager, Deputy general manager, general manager.

Nontechnical (1) (2) (3)


26

Accountant, junior personnel officer, junior law officer, superintendant, sales Ass.accountant officer, Assistant administrative officer, Ass.personnel officer, Ass.welfare officer. Account officer, Personnel officer, administrative officer etc
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In KAL promotion is based on Seniority Qualification Performance

If a person wont get promotion till 10 years due to lack of qualification, poor performance etc he will be given a grade. It is called upgradation.

Difference between up gradation and promotion: The upgraded person will get salary hike only. He wont be given authority according to the salary increment. But in the case of promotion, the employee have both salary hike and authority.

Performance appraisal policy It should be in prescribed form. The performance appraisal shall be conducted annually in the case of workmen. In the case of supervisors and above, the appraisal shall be conducted half yearly during the period from January to june and july to December. The entries in the performance appraisal form shall be clear and precise and shall be based on the officers personal observation of the work and conduct of workmen. The entries shall be made by the officer in his own hand or type written by him and shall be kept confidential ad the report shall be under the safe custody of the personnel department. If there are any adverse of such nature that the workmen needs an advice or admonition only, the concerned Head of Department shall render such advice of admonition. In more serious cases, the head of department shall give opportunity to the concerned to submit explanation. The intimation to the workman together with his reply, if any, shall be kept in the personal file.

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The confidential record shall be prepared by the officer under whom an employee is working and shall be submitted to the head of the department who shall countersign it, adding his own remarks, if any.

Performance appraisal process It includes the appraisal from the immediate head of each employee. Performance appraisal is done on the basis of certain factors such as job knowledge, job responsibility, quality of work, cost consciousness, organizing ability, punctuality, problem solving ability etc. Performance appraisal goes through the steps as follows: (First appraisal by employee, then appraisal by the rater (immediate next head) and reviewed by the head of the department. Calculation of appraisal score of employee done based on five point rating system. The final rating is done by the rater. Counseling is also given for low level performers). Steps Issue performance appraisal form to employees. Self appraisal by the employee. Appraisal by the rater. Review by the rater. Review by Department head. Calculation and appraisal score of each employee in personal interviews. Counsel employees for improving performance. The five point rating method is used for performance appraisal. Grading are given below in two tables. Five point rating method is used: Grade Performance Point A Excellent 90-100 B Very good 70-89 C good 50-69 D average 30-49 E Poor 10-29

Disciplinary procedure

Discipline is a watch word maintained in KAL. Disciplinary actions are strictly followed. There has not any instances of dismissed at KAL till date. As usual, the worker is given a show cause notice and a time limit is given to produce his
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explanation. If the explanation is satisfactory, no further action will be taken. But if it is not satisfactory, he will be given a charge sheet and thereafter enquiry. A workman can be suspended for enquiry. He will be paid a subsistence allowance according to the kerala payment subsistence act 1972. If the explanation is convincing, then the suspension is withdrawn and wages for the period of suspension will be paid in full. If no explanation is received, the management may proceed with action. Enquiry may be held by enquiry officers appointed by the higher authorities. Enquiry officers will make recordings and forward it to the concerned authority. Then charge sheet and the recordings of the enquiry will be given to the concerned authority and the decision is communicated to the workman. If the charges are proved by the enquiry action will be taken, if not the worker will be called on duty and his wages for the suspended period will be paid in full.

Grievance procedure The company has an open door policy as far as grievance handling is concerned. Workmen are true to take their grievance to their superior authority and seek a redressal. The usual procedure for handling of grievances is given below: (1) Grievance report to immediate supervisor. (2) If workman is not satisfied/ not receive reply within 7 days he can go to next immediate supervisor. (3) If that decision is not satisfactory/ doesnt receive reply with in 7 days, he can send the grievance to the head of department in written with signature. (4) If the decision of head department is unsatisfactory/ doesnt receive reply with in 7 days he can present a copy of grievance not to the Head of HRD department who will make necessary entries to grievance register. He will then conduct investigation of all relevant facts and endeavor to settle the grievance satisfactorily shall be final. The head of HRD department will implement the final decision if any and will inform the response in writing. Industrial Relations According to the referendum, the union having 15% membership will only be recognized. Now in KAL there are 3 unions.

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Name of union Reg. No. Kerala Automobiles 126/82 Limited Employees Union Kerala Automobiles 102/84 Employees Organization Kerala Automobiles 325/84 Employees Association

Affiliation INTUC STU(Swathanthra Thozhilali Union) CITU

From the discussion with HR manager Now there are 257 permanent employees in KAL Company was in loss before some years and is slowly coming to profit. Employees are given training in different areas for the expansion program. As a part of product diversification, coir spinning machine is made and handed over as per demand. By providing training, the management is trying to impart a change in the work culture. The work culture that KAL follows is a traditional one. It needs to accept the change according to market and time as the other public sector companies are also changing. In Department Performance Appraisal (DPC), HRD department has the plan to implement a written test for the officer category. But due to the opposition from the side of employees, it became unsuccessful.

Absenteeism: For lateness, the proportional amount of salary will be reduced. A regular attendance is kept. There is a time keeper to make sure that employees are on time. He is responsible and checks the duties on time.

Situation analysis is a must for a HR manager. One has to stay calm and listen to the problem/issue first. HR has to stand independent in taking the decisions, with out any biases

Exit interview: Usually there is no exit interviews done in KAL at the time of retirement.

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3.2

ADMINISTRATION DEPARTMENT
DEPARTMENT STRUCTURE

MANAGING DIRECTOR

ADMINISTRATION MANAGER

JUNIOR EXECUTIVE

WORKER

The main functions of administration department are as follows: Committees The committees in KAL are formed by the unions elected each year. Each union nominate one person to each committee. Equal number of persons from the side of labour unions will be nominated from the management side. The committees in KAL are canteen committee, safety committee, magazine committee, estate committee, scrap committee. Committees are under administration department. Election is also carried out by administration department. The union which wins election undertakes club and society. Usually the election is carried out in 3 years. Labour welfare committee: It provides Rs 62,000 to family on death of personnel. It is by aggregating the salary of 1% of employee plus 1% by the management. It gives awards to the children who tops in exams like SSLC, B.Tech, +2 etc. The price money varies as Rs 1000, Rs 750, Rs 500. Punching card and ID card are issued by the administration department. In turn, an employee has two cards.
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Security: Managing the security people is done by the administration department.

Fresh quotation is invited every year for the security people. Ex- service league, an association of ex-service men carries out security job nowadays. Total number of security = 18 Supervisor salary - Rs 200(improved from Rs 160) Security Guard - Rs 160 (improved from Rs125) Uniform for the workmen are issued by the administration department- Pista green shirt and black trousers for men and Pista green saree and black blouse for women. Stitching allowance of Rs 250 is given for men and Rs. 100 for women.
Canteen: every year new quotation invited in dailies like malayala manorama,

mathrubbhumui, kerala kaumudi etc to undertake canteen. Canteen committee votes and selects the best quotation. Management given Rs 300 subsidy for each employee every month. Coupon is given to employees for food. Water, building, utensils etc are free for canteen undertakers. There is a ration permit of 3500 Kg rise and 2000kg sugar for KAL canteen.
Stationery: administration department buys and stores he stationery items like

calculator, files, glue, paper, pen etc. In every 2-3 months it is bough wholesale from Triveni shop, for an amount up to Rs 40,000. It is supplied to each respective department as per the need and it makes sure that the items are not manipulated.
Letter dispatch: Every outgoing letter is sent via administrative department.

There is a machine called Franking Machine to seal the letters, which is issued from the postal department. The parcel weight is measured and the respective stamp rates are printed.
Advertisement: Some organizations demands for advertisement as promotion for

programs, in magazines, diaries etc. The photos that are advertised is brought to the organization, and then only the money is paid. To print the KAL diary, administration department approaches different firms for advertisement to reduce cost. It has a long time regular advertisement providers.
Furniture: It is bought and supplied by the administrative department. The repair

work is also done by this department.


Retirement: Administration department arranges a send off function in the

portico on the day of retirement of an employee. The company car is arranged to take him home. He will be given a gift and a party will be arranged.
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Supplying the government calendar from collecting it from the government press is the duty of administrative department.
Funeral arrangement: In the case of demise of an employee, Rs 5000 will be

given to the family to carry out funeral function. Rs 3000 will be given to the close relative of the died person.
Garden: the garden is maintained by the administration department. Head load workers: The wage of head load workers is paid by the administration

department.
License Renewal: Its the job of the administration department to renew the

license of company every year. If the license is not renewed, the company cannot work. The industrial license application is given in the form-2. It is according to the rules 4 , 12. The application for renewal is sent along with the duly filled in form-2 and the chellan of Rs. 75,000 and the names and details of Board of Directors. Original factories license will also be sent along with this and it is renewed and a new license is issued back to the company. The license is renewed from : The inspector of Factories and boilers Grade-2 , near vanchiyur police station, Thiruvananthapuram

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6.3

PURCHASE & SUB-CONTRACT DEPARTMENT


DEPARTMENT STRUCTURE

Manager (materials)

Assistant manager

Supplier developmen t

Senior engineer

Junior engineer

Clerical staff

Attender

PURCHASE DEPARTMENT Objectives: Satisfy the supplier by giving regular order Reduction in rate of rejection in materials Vendor rating up graduation The main function of the purchase department is to purchase the raw materials which are necessary for the production process. The products purchased are divided in to 5 divisions A,B,C,D,E. Product type A: includes tyre, engine, tube, sheet etc
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Product type B : includes upper cone, horn, speedometer, cable for gear control, heel cylinder assy, brake lever assy, mango lever, spring etc. Product type C : includes shaft with support, clip cables, shim adjusters, petrol tank neck, rear break adjuster, spacer for head lamp, cable for clutch, support bracket, rivet, wiper fitting, screw etc. Product type D : includes div. beeding, overflow pipe, speedometer cable, ignition switch, decompression cable, main electrical loom, DC horn, battery cable assy, BULB B 53, tail lamp assy, reflex reflector, indicator (green), silencer mountings, stop bush spring. Product type E : includes sheet (MICA/PVC), tape (cotton), paint(INC golden, yellow) , primer, putty, thinner, rubbing compound, polish wax, seal 101 chemi, react chemi, additives, welding glass, button mop, emergency powder.

Purchase cycle Calls quotation Negotiation Checks quality Purchase development

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Purchase department ensures the availability of right material at right tie at right place at the right quantity. The department is under the control of purchase manager. All the activities regarding purchase are under gone in this department. This department is responsible the procurement of raw, materials. Its supply and service the raw materials and purchase parts in the finished goods must be the information from the marketing department, planning department prepare the sales plan and send the production plan & material plan to the purchase department Based that requirement. The department purchases both raw materials and semi finished goods. Prepare the purchase order and then it scheduled to making purpose. Then give the order the company purchase mainly from Haryana, Uttar Pradesh and almost 25% is form Mumbai. The purchase of materials from vendors and they rate vendors and evaluate them on the basis of parameters like quality, price, time. The department is following ABC analysis for purchasing of products. They do have a PDCA cycle of doing things. ABCDE analysis is used to follow for the purchase. The order that is placed for A category is before the week, for B before one month and for C items. The order is
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placed before six months. The responsibility for A quality is with materials manager, B quality with Asst. Manager and C is with Asst. Engineer (purchase). There is a purchase committee formed for the purpose of bulk purchase of products. This department also uses vendor rating and vendor evaluation techniques. If the rating of the vendor C grade they will encourage the vendor to promote to B grade. Of they are not living up to their expectation. The company will delete the vendor names from the vendor list. The company purchasing more than 2200 components for a single product. The categories into A,B, C, D, E and subcontract. Most of the suppliers are from outside of the state. Mode of transmission is by truck or railway or airways, based on the time and need. Some of the main transportation agencies in the company are Kerala Transport Corporation. Sourashtra Roadways, ABT purchase etc. If the mode of transportation is through truck then thee consigner(vendor) give the consigner copy (CC) of the lorry receipt(LR) to the consignee forwards the CC of Ir to the agency and collects the goods. If the transportation is through railway then the documents in Rail receipt and for airways it is always bill.

The Procedure for a purchase Enquiry for question Receive the quotation Negotiation of the quotation Revise the quotation Compare the statement Proposal for the purchase Place purchase order Follow up the material Collect the material Quality inspection Raising GNR or GRJ (Good receipt note/Goods rejection note Payment to vendors
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Payment for vendors is in 3 ways Direct Credit forwarding original GRN & invoice to the accounts department for the payment, usually within 30days. Direct advance - against Performa invoice Through bank the vendor will sent the original invoice and CC to Lr to purchasers short bank. The bank sent BLSC (Bank Letter for Short Credit) After the payment, the bank will forward the Lr documents & invoice to the purchaser. There is a purchase committee. It includes DGM, manager- production, managerpurchase and one member from accounts section. Local purchase: Small and the products of urgent shortage are brought locally by paying money instantly. This is to avoid production held-up. The purchase up to 15000 is controlled by the manager Between 15000-100000, by the purchase committee Above 100000 controlled by MD with recommendation of purchase committee through GM List of the purchase schedule: Register for the copy of invoice LR forwarding register Comparative study Procurement data analysis Purchase order Enquiry notice Annual purchase plan List of approval suppliers Bank document GRN receipt Supplier rating document Supplier satisfaction is one of the main aims of the department. The department keeps good relation with the suppliers and pays money on time. It also makes sure that the
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products purchased are of good quality and keep motivating the suppliers to provide good quality stuff. SUPPLIER DEVELOPEMENY SECTION The section finds out the goods and fair source of supply. Procedure for supplier development:This section looks for the potential source of suppliers by referring the journals, attending exhibitions, seminar and trade fair. After making contract with suppliers, the section will prepare a supplier list form. Applications are received from the supplier and the committee evaluates and selects the good one. After the section a written letter will be sent to the approval supplier for the issue of required raw materials. The department is responsible to keep the supplier list and approval records. Performance of every supplier in the approval list will be reversal once in every six months. Functions: They act for the development of existing suppliers and identify their problem, then come out with good solution. Develop fresh parties for their requisition by R&D department Identify quality supplier from Provide alternatives solution for quality products.

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SUB- CONTRACT DEPARTMENT DEPARTMENT STRUCTURE


MATERIALS MANAGER

SENIOR ENGINEER

ENGINEER

JUNIOR ENGINEER

CLERICAL STAFF

In KAL many of the terms such as differential cage, axel, shaft etc are sub contracted from outside. This department has the same function as the purchase department. In this department the details regarding outsourcing products or materials are stored and updated. This department is functioning under the purchase manager. Sub Contracting materials are given inside and outside Kerala for work. Materials manager is in contract of sub contract department. Objectives: Supplier Satisfaction To reduce rejection in sub contract items of differential cage from 10% to 20% To reduce rejection of axel, shaft from 20% to 2%. The sub contract department follows PDCA cycle in this activity. Main Sub Contract areas are: Cluster gear, main gear with bush, hand chassis etc. Activities:
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Receive production plan from planning department Make purchase enquiry Invite quotations Prepare comparative statements Send negotiation letter Receive negotiation letter from vendors Prepare work order proposals. Proposal approval Issue work order Place loan note for approval Deliver materials Follow up note for approval Receiving inspection of sub contract items Receive GRN Check GRN to account department Forwarding of GRN to account department Sending payment with copy of GRN to work contracts Request to store for returning of rejected materials

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3.4

MARKETING DEPARTMENT
DEPARTMENT STRUCTURE

GENERAL MANAGER

ASSISTANT MANAGER

ACCOUNT OFFICER

SENIOR ENGINEER

ASSISTANT SALES EXECUTIVE

CLERICAL STAFF

North India is the main market of KAL. In 3 wheeler industry KAL has only 1 % market share.KAL mainly produce 3 wheeler chassis and send it to the godown I north India. Then it is supplied to the dealers as per their demand. The dealers make the body for the vehicle as the customer demands and sells the product. The dealers will get a significant amount in body building.It can be up to 1.4 lakh. This is because different people have different interest and they use this vehicle for different purposes. In kerala KAL cannot compete because there are a lot of manufacturers who gives super-finished goods to the customers. KAL is sharpening the edge to get in to the market. An another reason that the north Indian customers buy the product is that its performance. It have a good mileage
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and high power that it can run in any conditions of road.KAL is producing fully built vehicles as per demand. Marketing means making available products suitable for sales. The efficient making department is the corner stone for success for every organization. In KAL marketing department is under the control of GM (marketing). The activities of this department are directly reported to the MD. This department identifies the customers, interact with them and find out their needs and thus figure out the market potential of various products. Marketing management is a pre-requisite for the successful Operation of any business enterprise. Marketing management shall be responsible for the after service activities of the company. The marketing department shall maintain a register showing details of the warranty claims against each vehicle. Marketing determines the needs of the customer and sets out the pattern of production of goods and service necessary to satisfy their needs.

Quality objective: Extend awareness about MX400 vehicle among all dealers. Locate more dealer outlets in Karnataka and Tamil nude. Appoint dealers in the unrepresented areas in the northern states. Making available vehicle according to demand of the customers. Function: The marketing department ensures that the companys products are marketing to various outlets, taking in to consideration the demand for various types of vehicles at the various outlets. Appointment of dealers Dispatch of vehicles Preparation of sales and dispatch plan Collecting feedback information of the product. Termination of dealers Advertisement and sales promotion Transportation management
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Contract review Procurement and sales of spare parts Warranty settlement Free service coupon settlement Customer complaints Pre-delivery inspection and provide free service at dealer point Acceptance of order for special purpose products Procedure for contract amendment To co-ordinate the function of material production and sales department. 4 PS OF MARKETING:PRODUCT:KAL produces mainly 3 wheeler auto rickshaws of diesel as well as petrol versions. At present it is mainly concentrating on the diesel version under the brand name KAL. Products 1) Kerala GL 400 V2 electric start chassis- Rs 76,000 2) Kerala GL 400 V2 rope start chassis Rs 74,000 3) Kerala GL 400 V2 MX 400 electric start chassis- Rs 83,000 4) Kerala GL 400 V2 rope start - Rs 77,000 New products

1) Self start (340cc) petrol engine [CNG] 2) Self start (340cc) gas engine
Other products: KAL manufactures rocket components for ISRO from 1990. It worths up to Rs 50,00000. It has started manufacturing coir spinning machine and it has become successful. more and more machines are supposed to be manufactured in KAL.

PRICE:KAL follows cost plus pricing strategy in which the margin is included for its products. It also considers the price of competitors vehicles while fixing price.

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Market price of its products is kept comparatively lower than the competitors model. Before making the crucial pricing policy KAL conducts forecasting for its products mainly by Feedback from dealers Conducts market survey Compare the sales of competitors similar products. Company also conducts market research with the help of some external agencies

The various products of KAL having different price in various locations and the detailed market price list of the various products are given below PLACE:The marketing of vehicles is done through dealers and agents. The main market of the products of KAL is north India. The main markets include Haryana, Uttaranjal, Punjab, Rajasthan, Uttar Pradesh, and Gujarat. Here are also small markets in Kerala and tamilnadu. Exports:- a major portion of annual production is exported. KAL earning through foreign exports in last financial year were. Its major destinations include Bangladesh, Srilanka, Nepal, Sudan, Nigeria, Gautimala, South Africa, and Botswana etc. recently KAL has signed a memorandum for the export of 1500 diesel 3 wheeler vehicles with meders Liberty Techo Company and it was one of the biggest orders received by the company. The last time export worths $ 1600. Dealers are selected on the basis of show room facilities, service and man power etc. Company gets in to contract with dealers for a minimum of 2 years. Company has liaison officers at Delhi to co-ordinate the north Indian operations. The main dealers in Kerala are marikar and Kerala state agro industries.

PROMOTION:KAL Mainly uses customer promotion and trade promotion techniques to enhance sales. Main sales promotion techniques are: Company participates in auto shows Advertisement in local channels
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Gifts in all seasons Incentives to dealers making maximum sales 6 free services are given at crossing 500,1000,2000,3500,4500 and 5250 kms Warranty of spare parts. The warranty is for a period of 6 month from the date of purchase or crossing 5000 km which ever is earlier Sales incentives to the dealers as sales promotion Sales In Last 9 years No Year 1 2001-2002 2 2002-2003 3 2003-2004 4 2004-2005 5 2005-2006 6 2006-2007 7 2007-2008 8 2008-2009 9 2009-till Total number of 3 wheelers sold out til now is : 1,20,000 vehicles. Competitors: Bajaj auto ltd Piaggio auto Atul auto industry Sitarn auto industry Dealers:STATE NUMBERS Haryana 12 Punjab 10 Rajasthan 15 Uttar Pradesh 8 Dealers are given special incentives on achieving the more target and on selling more product. Dealers are given special offers to keep a good relationship with them. KAL provides all the support both technically and in management level. But nowadays there are no high sales. Sales 6858 6185 6756 5091 5900 4900 2917 1605 2605

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Special orders: sometimes KAL receives special order from Travancore dewaswom board. KAL manufacture special purpose tippers for them. Other activities:.

3.5

FINANCE DEPARTMENT
DEPARTMENTAL STRUCTURE GENERAL MANAGER

ACCOUNT OFFICER

ASSISTANT MANAGER (FINANCE)

ASSISTANT

CASHIER
ACCOUNTANT

COMPUTEROPERAT

INTERNAL
ASSISTANT ACCOUNTANT CLERICAL STAFF Seven persons are enough to start a public limited company.a company is started by contributing money. The capital of KAL is contributed by Government of kerala when it started. The initial investment was 4 crores when the company started. It was in loss till 1992.then a revival package was allowed by BIFR.It was approached to banks to get money and to government for grand. In 1994-95, it started making profit. It continued up to 2004-05. Its accumulated loss was wiped out and it snet worth became positive. There was a surplus in the balance sheet. From 2005-06, it again came to loss and continues till now.This is because the production and sales is not enough to meet the target. Current status: Companies accumulated loss 15 crore.
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AUDITOR

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Companies net worth is negative.(net worth = asset liability) Production less that 300 vehicles a month will make liability. So, R&D is to be developed to get it manage. They have to give quality product. Nowadays company suffers the lack of sufficient amount of fund for the day to day operations.The government should provide more money to meet working capital. There are crores of rupees as current liability. Money is the life blood of any organization as it is required to purchase raw materials and machines, to pay wages and salary etc. the financial statement of the company is prepared under the convention accrual basis as a going concern. Complying with the accounting standards prescribed under the companies act 1986. Documents for original entry are prepared directly in the computer and a copy is sent to the appropriate authority for further verification and approval. If any entry is to be certified, it can only be done through an adjustment document. This ensures security of documentation against any accidental errors or manifestation. The ultimate responsibility of carrying out the finance functions lies with the top management. Thus a department to organize the financial function should be under the direct control of the Board Of Directors.

MAIN FUNCTIONS: Cashier collects cash receipt . If any payment is taken place, a bank payment voucher is prepared. Every voucher is prepared by the debit and credit system through the computer. When transaction takes place, a sales invoice is prepared by the marketing department for the dealer. When invoice is prepared, the computer database is used to create debit and credit and which is sent to dealers. From sales list, a trial balance is prepared. When payment is taken place, payment voucher is prepared. Every transaction is prepared by clerk. It is send to the finance manager. Then the payment is given by the cahier. Cash receipt/payment Bank receipt Finalization. Capital structure Purchase.
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Sales Managing computer. Preparation of VSR Withdraw/receive/payment of cash. Position and filling of VRS. Settlement of tax, temporary salary, interest advance. Payment of retainer fee. Physical verification of cash. Verification/approval of all cash /bank receipt and payment vouchers. Bank receipts/payments Preparation of RT vouchers. Amount transfer vouchers. Writing of cheque. Generation bank books. Preparation of bank reconciliation statement. Verification of checklist of sales bills, stipend etc. Remittance of all recoveries made from salary. Settlement of canteen account etc. Finalizations Analysis of ledger. Ratification of errors. Adjusting and clearing entries. Preparation of trial balance, P&L accountant & balance sheet. Assisting internal audit. Assisting statutory audit. Preparation of annual reports. Capital structure Capital structure is a major aspect of financial planning. The capital or funds come in the form of long term and short term departments, preferences and equiy shares. The company has no share holders other than loan from Kerala government.
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The companys other financial support is only from the financial institution SBI. Debt-equity ratio of the company was 6.7:1 I n2001-02, .44:1 in 2002-03, .38:1 in 2003-04.

Purchase Opening tenders Posting and filling GRN Preparation of payment vouchers Analysis of supplier vouchers Analysis of supplier account. Sales Arrange follow-up invoice. Preparation of sales tax return. Payment of incentives. Warranty claim statement. Attending sales tax hearing. Verification of account. Managing computer Salary bill processing. Arrears calculations. Keeping the accounts database. Calculating the employee benefits, credits, debts etc. Preparing the documents of transactions. Maintenance of computer system is done by finance department.

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3.6

PLANNING DEPARTMENT
DEPARTMENT STRUCTURE ASSISTANT MANAGER

JUNIOR ENGINEER

OFFICER Planning department is under the control of GM(production). This is the base of all production, marketing, storing and all other managerial functions of the management. All the major functions are performed within the framework of plans done by the planning department. This department mainly concentrating on production, marketing, storing and all other managerial functions of the management. It is mainly concentrating on scales planning. But also maintenance the material planning and production planning. They are taking the decision on market targeting, market mix, priority of raw materials (A, B, C, D, E ) etc. Based on the information from the marketing department, they produce monthly target. Then the target will send to the concerned department. If any faults happen, then make correction after discussing with the GM. Functions In KAL planning takes in 3 phases. Planning phase Executing phase Control phase.

This department gives the information about the allocation and utilization of machines and materials required for production. Incoming raw materials are delivered to the quality assurance department after that collect in store and then distribution. It also does the controlling function. The day to day works are sent to this department to check whether the production is in accordance with the planned level or not.

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3.7

RESEARCH & DEVELOPMENT DEPARTMENT

MANAGER

Sr. Engineer

Jr. Engineer

This department designs the model of products and provides information about various items, which the company can produce. This department is under the control of the marketing manager. In KAL, R&D department provides information about the various products which can be provided by the company. Design section: Based on the market study done by the marketing department and competitors, the marketing section decides the design for the product. Italian design is the basic design adopted for the Indian 3 wheeler industry. In KAL, they designed the petrol model in 1984. In 1985 they designed the diesel engines vehicles. KAL designed the tipper, bottle carrier, jumbo, 4 stroke petrol engine vehicle etc. KAL product engineering section has the computerized design system and testing equipment to ensure the international standards. Experienced engineers have transformed the basic Italian model. The latest trends in production are to provide fuel efficient and eco-friendly vehicles. Company is introducing engines of bharat stage-3. Major achievements Introduced diesel engine 3 wheeler in the market for the first time. Introduced 6 seater diesel engine 3 wheelers. Development of aerodynamic design.
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Introduced TRIMO which is a 3 wheeler micro car with round steering. It had good market potential. But the production became unsuccessful due to financial, legal and red tape constraints. Design, development and introduction of KERALA 360 pick-up van with hydraulic system. Introduction of KERALA MX400 chassis.

R&D in wheeler functional area Improving riding control Aerodynamic body design. Re-design seating capacity. Development of AF series of gearbox, resulting in the increase of maximum speed from 4 kmph to 50 kmph. Fixation of quality grade for present gear components. Analysis of low clutch life period and introducing necessary modifications. Research and analysis to reduce rolling friction of existing models. Research for the modification of present engine to upgrade to next bharat stage level.

Future plans: Improve the quality and reliability of products. Design and development of high-tech 4S petrol engine. Improve the quality of the components used for production. Improve the quality of sophisticated precision components application of VSSC. Plan to develop hybrid electric vehicle as a combined project with KELTRON. for space

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3.8

PRODUCTION DEPARTMENT

PLANT PROCESS

Supplies raw materials


( through suppliers

Stores raw materials

Fabrication

Paint department

Machine shop

Quality inspection

Sub assembly Final assembly

Quality inspection

Quality inspection

Stores department

PROCESS: In the first step, the materials are purchased from the supplier and sent to the manufacturing process. The manufacturing is done according to the specifications given by the product design section. The marketing department will be involved in the work of collecting the design specifications from the market. Once these specifications are collected from the market, the design department will design the product and send it to the approval of the purchase department. Once the purchase department approves the design, then the planning department prepare the production plan. Using this plan, the materials are taken from the stores department and products
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are made by the production department. Each and every step of production process will undergo a quality check. The finished product is also undergone a quality check and is sent to the stores to hand over to the dealers. The entire work flow is divided into 3 major processes 1) MOP(management oriented process) 2) COP(customer oriented process) 3) SOP(support oriented process) (1)MOP deals with the market representative(MR) and IQA. In order to achieve the targeted profit, (2)required steps are taken by them. It is concerned with providing good of good quality at a competitive price. For this purpose the quality assurance department is established. (3)COP deals with making the customer satisfied by providing all the services they require. Various departments are covered under COP. They are marketing, designing, planning etc. SOP is concerned with providing necessary services that supports the MOP and COP. SOP do also play an important role in the organization. Unless SOP is not working at 100% efficiency, it is not possible to provides quality goods on time. SOP covers various departments like stores, HRD, QA etc. About the department: Production department is the main department in which certain ideas and technologies are adopted for purchasing the quality products. The employees crew includes industries at engineers, machine operators, plant maintenance etc. The production department is mainly classified into 5 sub Units. Each sub units have separate manager KAL has the capacity of producing 600 units per month. The production department is mainly concerned with manufacturing of various parts of the vehicle monthly production is fixed on the basis of target demanded in the market available of raw materials and the financial capacity of the company. In earlier days, production of KAL in some month was 750-800, now. It is around 300. This is because of some financial crisis and some sales promotion techniques. There is no separate using for promoting in advertisement and the authorities do not take any such promotional activities. Non- advertisement is one of the failures of the competition among others such as piaggio, Ape, Bajaj Auto etc.
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The sub units under the production department are Machine shop Heat treatment Tool Room Fabrication Assembly Paint

KAL receiving the projects from the organization in sub contract base such as VSSC, KELTRON etc. Objectives:o Minimize the rejection rate o Reduce the network of material o Improving the utilization of material o Rejection of material if nay to the store. o Undergoing machining operations of accepts material o Ensure the quality of the products. Machine Shop:DEPARTMENT STRUCTURE

GENERAL MANAGER ASSISTANTGENERAL

SENIOR ENGINEER

ENGINEER

WORKMAN
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Machine shop producers the sub pairs which are required for the production of the finished goods. Tool room is a part of this. The maintenance of the tool room is done at tool room for production. As per the planned schedule. The store issue the material required for the production in a weekly manner, Gear selector, steering road etc are produced in the plant. The shop is under the control of the Sr. Engineer . machines in the machine shop o Capston lathe CD1 o Capston lathe CD 2 o High speed lathe H22 o Turrent lathe o Enterprise centre lathe o Copying lathe hidustan. o Facing & catering machine. o CVC turning lathe (weiler) o CVC turning lathe o 2D capston lathe New 2D2 o Redial drilling RD 50. o Radial drilling RD6 o Radial drilling Balitiboi RD 25 o Drilling machine baltiboi RD-32 o Drilling machine new Baltiboi RD322 o Column drilling machine New CD 402 o Accumax pillar drill o Bench drill. o Automatic tapping machine.
o o o

HMT Horizontal milling machine (FN1 EH1) HMT Horizontal milling machine (FN2 EH2) Horizontal milling.(BFW)

o Universal milling o HMT Vertical milling (FN2V1)


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o HMT Vertical milling new (FN2V2) o Milling machine(MTR) o HMT Horizontal cylindrical grinder(K1300) o HMT cylindrical grinder(K1300-300p) o Cylindrical grinder(K1300) o AWH grinder(GT) o New Spin Surface GH (GVS30) o Surface grinder pranga o Internal grinder(GIF -80) o Gear Shaper Old o Gear shaper HMT New o Gear Hobbing Cutter o HMT Broaching Machine o HMT Vertical Milling VTC
o

Fine Boaring Machine 734

o Fine Boaring Machine 375 o Honing Machine o VMB-8 o Rolling Machine Heat Treatment:Here the components are heat treatment this station includes.

Muffler furnace Gas car building furnace Induction hardening etc.

These are under high temperature. Pallet trucks are used to transport the material since the temperature is very high. The tempered and hardened units are tested by the quality control unit DEPARTMENT STRUCTURE

JUNIOR ENGINEER
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WORKMAN

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Tool Room:The maintenance of tool is done in the tool room department. The consumable tools requires frequent maintenance. KAL also receive products from organization such as VSSC, KELTRON etc. These projects include of certain components and are carried out here DEPARTMENT STRUCTURE

SENIOR ENGINEER

WORKMAN

Fabrication:-

ENGINEER

JUNIOR ENGINEER WORKMAN


It comes uncer the asst. manager engineer is the head. The main functions are welding cutting etc. Some machines are used; Bending machine Pressing machine Welding machine Shearing machine Lythe enterprises Nimbling machine 160 ton is the capacity pressure

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The initial worries like bending , pressing, welding etc are doing here after that they will forward to the other sections like machine shop, assembly etc. The fabricated body parts are then thoroughly checked by the QA department.

Welding Process There are 4 type of welding. Mig welding (using Metal + CO2) Arc welding( using rads) Spot welding (carbide point) Gas welding- this method is used to weld the diesel tank or petrol tank.

Assembly:SENIOR ENGINEER

JUNIOR ENGINEER

WORKMAN

Production manager is the head of thisdepartment. Gear assembly, engine assembly vehicle assembly, handle assembly etc are the main fuctions. It holds sub assembly, Doom Aasembly etc. Some types of assembles are Rear break plate assembly Tire assembly Rear axle assembly Differential assembly Hub assembly Chassis assembly Handle bar assembly Propeller shaft assembly Fork assembly
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Front hub assembly Gear box assembly Electrical assembly Diesel assembly

Line Assembly :Line assembly is one of the main assembly section. There are main two stages in line assembly. Stage A: Join chassis & differential (rear axle assembly). It includes the assembling of foor break, hand break, propeller shaft. The front fork is also fixed. Stage B: differential oil is filled. Back and front tires are fitted in this section. The handle bar is also fixed. From this department, it goes to the doom section to assemble doomshield, glass, diesel tank and from there, it goes to Engine assembly.

Engine Assembly:Greeves GL 400 engine is used to manufacture 3 wheeler. It is a single cylinder diesel engine. Its a 4 stroke engine( low pollution, more mileage) Specifications of engine 400cc, 3600rpm at maximum and 1000 rpm at minimum, HP-7.5, air cooling system.multi plate clutch, Engine price around Rs. 24,000 Engine oils:- 20-40 grade (1.25) SAE 90 grade(1.45 litres) 140 grade filer oil , this is for filler plug at the rear part When the grade of the oil increases, its viscosity decreases. Filering devices: there are 3 filtering processes. They are -Air filter, diesel filter, Oil filter. Gear Box section Gear box section manufactures the gear. Torque and speed of the engine is determined by the gearbox. Engines uncontrolled power is controlled by gearbox.

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The teeth of gear box needs very sharp attention in its manufacturing process. Small teeth have high regulation and large teeth have low regulation.

Paint shop-

JUNIOR ENGINEER

WORKMAN

Junior engineer is the head of this department. The painting works of the finished goods are done here, before the painting the products are sending to the pretreatment section. It is called as tank process. The various steps:klean chemi -> water -> blast chemi(de-rusting) ->water -> seal chemi -> De-act chemi.

It is done to avoid the resting. A crane is used for cleaning. A pre-treatment is done before painting. Small components are spray painted using conveyer belt. After that the components are sending to the locator for drying. Two Types Spray Painting Dip Painting

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3.9

QUALITY ASSURANCE DEPARTMENT

The main aspect of these departments to check and maintain the quality of finished as well as incoming materials. The finished goods go through three stages of inspection. They are: Vehicles inspection Test running Final inspection

ASSISTANT MANAGER

SUPERINTENDENT WORKMEN
Objectives: Cost reduction Quality- checking Providing all suggestions Wastage control Higher productivity Reduce defects of implant items by10% Create a cultural among the employees of the company towards total quality concepts and higher productivity through planned training for all employees Direct and prevent non conformance defects as early as possible and climate them through appropriate change to the quality management system. To reduce the percentage of vehicle with break pedal problem. 30% to 5% To reduce the defects of following components in the production department to less them 10% Differential Cage Tramission Staff
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Differential Bush Crown wheel pinior KAL is an ISO 9001-2000 affiliated company.

Quality Policy:The management and employees of KAL are committed to development, manufacture, marketing & service three wheelers, meeting customer needs through a proves of continual improvement of its quality management system. Functions:In order to maintain the quality policy and objectives the incoming materials an in plant materials and finished goods under go several inspections in different stages. Chemical lab is also plays a major are in Quality Assurance Department. The critical activities: Incoming inspection In process inspection Fabrication Finished vehicle calibration Calibration.

Incoming inspection Receive provisional GRN from stores department. Conduct inspection as per QAD plan. Rejected items with GRM given to stores Accepted items with GRN are given to stores department and provide tags in process inspection Conduct spot inspection Conduct stage inspection After machine operation are inspected Defective items are given to final inspector after doing work Accepted items are given to sub-store Defective items are given to sub store after rework.
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Fabrication Spot inspection: done at each step of production. It is done by setting an approved model each material and compared the original with it Stage inspection: Done to check whether any operation is missed or is there any errors in operation Final inspection: there final products are inspected for quality. The compatibility of that products is also checked

Finished vehicle calibration Vehicle testing of the accepted vehicles Vehicles testing after rework Transferring accepted vehicles to the finished goods store

Calibration In house calibration in their standard room Invite quotations from external agencies to calibrate Prepare comparative study and take decision Give work to external agency Calibrated Place stickers on the calibrated items The finished goods are passes through four another stages to ensure quality Vehicles inspection Testing running Final inspection Inspection before dispatch

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3.10 STORES DEPARTMENT


The success of the business largely depends up on efficient and effective stores. Stores are the place where the raw materials. Semi finished goods and finished goods are kept after the production. Stores department comes under GM (production). KAL follows ABC analysis for inventory storage. According to the nature of items stores are kept:-

Store I: hardware items, painting items, rubber parts, gear items etc. Store II: Bearing components, location assembly battery Store III: Casting, forging, sheet metal items. Store IV: Raw materials, pipe wool.

ASSISTANT MANAGER

JUNIOR TRADESMAN

JUNIOR TRADESMAN

WORKMAN

It follows ABC analysis for the inventory Inventory Control: A. Items will store only before one week B. Items will store only before one month C. Items will store before 6 month A- Required 70% of the total price, B- items required the 20% and C- items required to 10% The main items is store are , hardware items, rubber parts, gear items, sheet metal items, raw materials, pipe wood etc
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Classification & codifications:Materials stored are classified according to their nature& usage. All the items are given part no. as cod and having tag. In addition to then\ main store there is a sub unit also. The store keepers record the data of materials on the bin card and adjust the store balance. The entire information is entered in to the computerized store ledger system called card-x, which give systematic and accurate record. Verification is done at every end of the final year. Actual stock is compare with the stock shown the ledger. Store keeper are the concerned authority are responsible for any difference in stock level. Functions: Receive the raw material and store it Dispatch of rejected raw materials Rejected material will be returned to party within 45 days after clearing provision GRN. Reduce the stock o non-moving item Control the inventory as the level fixed for maximum and minimum stock Improve the storage facility for bearing battering rear back plate assembly tool items Preparing documents for central excise department. Critical Activities: Receiving of raw materials and storage of item Issuing of materials Dispatch of rejected materials Receiving, dispatch and storage of finished goods Disposal of scraps Periodic stock verifications Preparing of documents for central department

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3.11 MAINTENANCE DEPARTMENT


Department structure

ENGINEER JUNIOR ENGINEER WORKER


Maintenance department functions under the control of manager (production). This department undertakes the work of electrical, mechanical, and civil maintenance. The maintenance procedure is done as team work of supervisors and technicians. Maintenance work, which cant be settled by the department, is done by licensed contractors and outside exports. Functions:There are mainly two types of maintenance are conducted at KAL Preventive Maintenance Breakdown Maintenance Preventive maintenance:It is carries out to increase the lifespan of the machine. It is classified as daily, weekly, quarterly and yearly maintenance. Initial activities in preventive maintenance includes Prepare schedule for preventive maintence Check availability of machines for planned data If the machine is not available for planned data reschedule it. Check availability of spares Place indent with purchase department Stores spares in sub store Allocate technicians Do the preventive maintenance Check the completeness of preventive Maintenance
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Prepare the monthly report Break down maintenance:It is carried out at the time of breakdown of machines, when the breakdown of machines is informed by the concerned trade man. If a number of machines are breakdown at a same time then the machines are prioritized on the basis of loss of breakdown per hour Activities in breakdown maintenance Check the nature of complaints whether the complaints is mechanical. Civil or electrical Check minimum stock level spares Check spare parts procurement through purchase department Allocate the technicians for repair work If the maintenance department cant rectify it obtain the service of engineers from others Complete maintains and repair work handover the machine

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3.12 SERVICE & SPARES DEPARTMENT


Its function is to provide quality services to the customer. It I under the control of marketing department. Functions: Collect feedback report from marketing department about the products. Collecting the field complaints. Pre-delivery inspection. Framing customer satisafaction.

The company providing free service campaigns along with dealers once in 6 months or annually. Coupon service: It is done as an after sales service this service is based on particular period or kilometers whichever is earlier. The coupons are received from the customer and send the accounts department and credit note is prepared. The service based on service period is as follows: Distance 500 1000 2000 3500 4500 5250 Warranty settlement A warranty settlement is given to the vehicle for 6 month from the date of purchase or till 6000km, whichever is earlier. Warranty is not valid for the rubber parts. In case of damages, dealer will fill up warranty service claims. Maintaining chassis number, engine number and the date of sale will send to the company. KAL identifies the batch number and accept it if the case is genuine. Spare parts maintenance The department has a spare parts store. The sale of spare is through the dealers. The dealers will be having a store of fast moving spares.
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Period(within days) 30 60 90 120 150 180

Amount(Rs.) 75 75 100 100 100 100

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SWOT ANALYSIS

SWOT is a system approach to understand the environment of the company. SWOT simply strength, Weakness, Opportunity, Threat. Strength is the inherent capacity which organization can use to gain strategic advantage over competitions. Weakness is an inherent limitation or constraint which creates strategic disadvantage opportunity is a favorable condition in the environment creates risk. Like any other company KAL is also having its own strength, Weakness, Opportunity, Threats. They are mentioned below. The sources of datas are from employees and from my own observation STRENGTH: ISO 9001-2000 certified company Product quality Major market share at north Indian states Enter into new product line Introduction of LPG models Low cost and well disinclined staff Launch of suggestion box for constructive suggestion from employees Company is keen in providing salaries and other monitory benefits Good training and induction program for workers

WEAKNESS: Outdated product design Lack of sales promotion activities Manual working No petrol models since 2000 Lack of proper financing for R&D when compared with competitors Less market share in south India Lack of new technology Low level salary for apprentice daily wages Absenteeism Lack of promotional activities based on performance Political interference
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Slow decision making process

OPPORTUNITIES: Joint venture with other companies to earn more market share Opportunity to explore new foreign market New trade promotional tools can be used Concentrating more on sophisticated precession components for space application of VSSC or ISRO Ability to grow rapidly because of growing demands Support from government helps to tackle certain legal obstacles Introduction of new petrol models that BS-II norms will surely helps KAL to capture major market share Emergence of new technology available in the market The company is in the process of implementing new Strategies to achieve quantum jump in customer satisfaction Establishes market in foreign country Major market share in north India Good industrial Relation A good dealership network which ensures that products reach customers on time THREATS: Competition High growth in vehicles production Resistance to change Emergence of most modern technique to the globalization Political interference Out dated production techniques Competitors are having major market share Less market share in South India More involvement of trade unions

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FINDINGS AND SUGGESTIONS

5.1

FINDINGS

Positives:

Company posses the entire basic factory infrastructure. Company has its own specific customers. Skilled workers. Availability of manufacturing machines. Availability of contract workers all the time, when necessary. The location of the company near highway and close to city, with railway and other mode of transportations near with gives an advantage.

Presence of experienced employees in their respective domains. Well managed recruitment system. A well maintained factory working time and attendance system, affordable to employees. HR department gives training to the various employees as per the chances available. Government pay scale for employees. Implementation of disciplinary procedure. KAL has its own exclusive customers and dealers. A powerful vehicle having enough mileage in any road condition. Comparatively good and affordable canteen. Good insurance scheme is provided for employees.

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Negatives:

Absence of modern office management system. Gloomy working atmosphere inside the office. Lack of employee energy. Lack of motivation in employees. Lack of implementation of modern concepts of management in some areas. Need a change in the attitudes of employees towards work and company. Need to avoid lazy attitude in employees. Though absenteeism could have reduced, there exists necessity of employee engagement programs. Make sure that employees do either their job or some assigned job when they are inside the office.

The need to renovate the drinking water facility and toilet facilities and its maintenance after renovation. Need to manage unskilled employees in some way so that they can be assigned some job which will be productive for the company.

Need to re-structure the incentive plan based on production. Problem making labors and unions are burden to the management. Lack of safety measures of workmen is to be re-checked. Lack of young, creative minds in some domain areas. Low profit is an obstacle on the way to development.

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5.2

Suggestions: The first step in striving the organization is to find maximum profit and make the net worth positive. For that a collective effort is necessary. Marketing is to be done efficiently. Find out new dealers, make more promotions in rural areas, give creative, brilliant youngsters ( in the form of trainees) place in company in the marketing department. Product diversification is another source by which revenue can be generated. Find out more potential products that can be manufactured in the company using the infrastructure in the plant. It will be useful to avoid the idleness of machines in the factory, thus by utilizing the resources maximum. After collecting the maximum fund, the further proceedings can be done effectively. Company can be develop step by step, only after achieving development process. Can provide employee motivation in KAL. This is to be done along with the other development activities towards making profit. Support the employees who have positive attitude, high energy, aspiration to grow etc. KAL can think of providing a pleasant work atmosphere, after getting enough revenue. KAL can think of optimizing the use of paper documents and can shift to edocuments, which will help to reduce the paper use and file storing burden, helps to access data easily. An analysis/study can be carried out. Production based incentive scheme can be re-structured. Marketing department can work more actively in finding more market and dealers in north India. It can think of developing exclusive products for south India. Employees in technical sections need to be motivated to make new innovations and creative employees should be awarded. money as profit for further

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The need to renovate the drinking water facility and toilet facilities and its maintenance after renovation Its the time to replace canteen furniture and renovation.

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CONCLUSION

KAL is one of the first three wheelers manufactures of India. The products are KAL are sold under the brand name KAL. KAL was established in 15 th march 1978 and was officially inaugurated in 1984. KAL is a public sector company. As that of any public sector enterprises KALs gestation period was long with many ups and down. But a committed skillful work force and efficient teams of management as help KAL to overcome all the obstacles. Company has already entered into the international market and it has strong hold market in north India states with a slide improvement in technological aspects and challenge to its competitors like Bajaj Auto. Ltd., Piaggio, TVS etc. the only draw back is that presently the company is not able to meet its demanded production to inadequate resources.

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AN ORGANIZATIONAL STUDY AT KERALA AUTOMOBILE LTD. Prepared by Sandeep Nair

BIBLIOGRAPHY

Company Journals Department Files Direct Interview


www.threewhelersindia.com www.keralaautomobiles.com www.keralapublicsectorindusty.com

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