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S.NO 1. PARTICUARS INTRODUCTION
1.1. ABOUT INPLANT TRAINING 1.2. ABOUT THE INDUSTRY
2.1. ITI LTD PALAKKAD PLANT 2.2. IMPORTANT MILESTONES OF THE PALAKKAD PLANT 2.3. ORGANISATIONAL CHART 2.4. COMPONY AT A GLANCE
7-10 11 12 13 14 15 16-19 20 21 22-23 24-25 26 27 28 29-31 32-33 34 35 36 37-40 41-43 44-49 50-56 57 58
RANGE OF PRODECT DEPARTMENT PROFILE
4.1. HUMEN RESOURCE 4.2. PLANNING 4.3. METERIAL PLANNING 4.4. PRODUCTION PLANNING 4.5. STORE] 4.6. SHIPPING 4.7. DOCUMENTATION 4.8. COMMERCIAL 4.9. INDUSTRIAL ENGINEERING 4.10.SALES&BILLING 4.11.PURCHASE 4.12.MARKETING 4.13.QUALITY ASSURENCE 4.14.PRODUCTION 4.15.VIGILANCE 4.16.INTERNAL AUDIT 4.17.FINANCE
1.1. ABOUT INPLANT TRAINING
In Plant Training will provide an industrial exposure to the students as well as to develop their career in the high tech industrial requirements. Reputed companies are providing inplant training to Students. Here students are initially get counseled in order to emerge out their interest in various streams and what are all the basic concepts they know on that domain. After the successful completion of studies students has to face this competitive world with this knowledge to face many problems and to find the right solutions which is to be solved in the minimum duration of time. The inplant training is get totally different from the class environments.
Following are the objectives of In-plant training:
To get an Industrial exposure.
To be aware of the happening in a particular industry.
To achieve knowledge about different sectors in market for making choice as to which go for.
To learn functioning and operations of different departments in an organization.
To get knowledge about the working culture of the organization.
To have knowledge about the huge management practices and get the practical knowledge of what we have studied.
1.2. INDUSTRY PROFILE
Telecommunications Industry Telecommunications industry deals with the activities and services of electronic systems for transmitting messages through cables, telephone, radio or television.
Components and factors responsible behind the growth of telecommunications industry Two major factors responsible for the growth of telecommunications industry are use of modern technology and market competition. One of the products of modern technologies is optical fibers, which are being used as a medium of data transmission instead of using coaxial or twisted pair cables. Optical fibers can carry a high volume of data and are easier to maintain and install. Uses of communication satellites make this telecommunications industry a booming industry. The use of mobile network has a crucial role behind the growth of an improved telecommunications industry. Leading companies are showing their interest to invest in this telecommunications industry. Telecommunications industry is going to be a digitized one. Use of ISDN (Inter Services Digital Network) makes this telecommunication industry a total digitalized system and eventually enhanced the speed and quality of digital communication. The introduction of these advanced technologies makes the telecommunications industry a competitive one, where a number of multinational companies have shown their interest to invest in this industry and consequently the prices are reduced, the quality is also improved. During the period of 1990, the telecommunication industry showed a speedy growth in terms of investment and eventually increased the competition. The competition between the companies led to the decline of revenues.
Employment opportunities in telecommunications industry Telecommunication industry has created immense employment opportunities. Most of the employees in this industry are engaged in large establishments, although there are some small establishments, where a large number of small contractors are involved. Fifty five percent of all workers are engaged in office and administrative support occupations. The other occupations of this industry relate to installation, maintenance, and repair.
World Telecom Industry World telecom industry is an uprising industry, proceeding towards a goal of achieving two third of the world's telecom connections. Over the past few years information and communications technology has
changed in a dramatic manner and as a result of that world telecom industry is going to be a booming industry. Substantial economic growth and mounting population enable the rapid growth of this industry.
Research works associated with world telecommunication industry A number of research works are being carried out all over the world to improve the quality and speed of transmission. Research works are also done on the basis of the users' needs. The objective of the research work is to provide quality and affordable service to the consumers. Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound annual growth rate at the end of year 2010. The leading telecom companies like AT&T, Vodafone, Verizon, SBC Communications, Bell South, and Qwest Communications are trying to take the advantage of this growth. These companies are working on telecommunication fields like broadband technologies, EDGE (Enhanced Data rates for Global Evolution) technologies; LAN-WAN inter networking, optical networking, and voice over Internet protocol, wireless data serviceetc.
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy. The total revenue earned from this industry is 3 percent of the gross world products and is aiming at attaining more revenues. One statistical report reveals that approximately 16.9% of the world population has access to the Internet.
Present market scenario of world telecom industry
Over the last couple of years, world telecommunication industry has been consolidating by allowing private organizations the opportunities to run their businesses with this industry. The Government monopolies are now being privatized and consequently competition is developing. Among all, the domestic and small business markets are the hardest.
Telecom Industry in India Telecom industry in India has a big market potentiality and is a fast growing sector. Government of India is eager to reconstitute this telecom industry by enacting effective policies for more investments from foreign companies, which results in a very competitive and deregulated market in the world.
Policies of telecom industry in India
Government of India implemented the unified access licensing regime, which enables basic and cellular mobile service to use any modern technology. In 1997, Telecom Regulatory Authority of India (TRAI) was formed to facilitate the growth of the telecom sector in India.
Major services and market potentiality of Telecom industry in India
Telecommunication sector in India is primarily subdivided into two segments, which are Fixed Service Provider (FSPs) and Cellular Services. Telecom industry in India constitutes some essential telecom services like telephone, radio, television and Internet. Telecom industry in India is specifically emphasizing on latest technologies like GSM (Global System for Mobile Communications), CDMA (Code Division Multiple Access), PMRTS (Public Mobile RadioTrunking Services), Fixed Line and WLL (Wireless Local Loop). India has a prospering market specifically in GSM mobile service and the number of subscribers is growing very fast.
Economic perspective of telecom industry in India
Telecom industry in India has a major role in Indian economy. The Indian government is also enforcing some effective telecom policies and regulations for the infrastructural growth of this industry. Indian telecom market provides a tele-density of 8.5 percent as registered in the year 2004. A number of leading multinational telecommunication companies are approaching and showing their interest to invest for the telecom industry in India. Telecommunication industry of India ranked sixth among all the telecommunication sectors in the world. In the year 2004, the total numbers of telephone subscriptions were US$93.2.
Leading telecommunication service providers of telecom industry in India
Bharat Sanchar Nigam Limited, Mahanagar Telephone Nigam Limited (MTNL), Videsh Sanchar Nigam Limited (VSNL), Bharti Airtel, Tata Teleservices, SIFY Ltd. are the major telecommunications service providers in India.
The stupendous growth of the Telecommunication companies in India over the last fifteen years can be attributed to the liberal government of India, economic policy. The economic renaissance affected in the early 1990s brought around a paradigm shift on the overall business scenario of India. The telecommunication companies in India went through a huge make-over during the implementation of the open-market policy of India. The erstwhile closed market policy was replaced by a more liberal form of economic policy. A whole new form of Indian Telecommunication Policy was drafted to compliment the change effected in the economic policy of India. The amendment affected the new telecommunication policy of India made huge changes with respect to investments and entry of Foreign Direct Investments (FDI) and Foreign Institution Investors (FII) respectively, into the virgin Indian telecommunication market. This resulted entry of private, domestic and foreign telecommunication companies in India The economic contribution made by these newly formed telecommunication companies of India 4
is really mentioned worthy and this industry witnessed highest growth after the Indian Information Technology industry. The robust growth of Indian economy after the economic liberalization in the 1990s induced massive change in the telecom policy and new draft was framed and implemented by the 'Telecom Regulatory Authority of India' (TRAI) and‟ Department of Telecommunication' (DOT), under the Ministry of Telecommunication government of India. The main aim of these telecommunication companies in India is to provide basic telephony services to each and every Indian. With the advent of private telecommunication companies in India, the industry witnessed introduction of mobile telephones into the Indian market and it became popular amongst the Indian masses in no time. Today two types of mobile phone service providers operates in the Indian market, like the following
Global System for Mobile Communications (GSM)
Code Division Multiple Access (CDMA)The main binding objective for all the telecommunication companies operating in India are as follows -
To facilitate telecommunication for all
Ensuring quick availability of telephone connectivity
Achieve universal service access at affordable price covering all Indian villages, as early as possible
Providing world class telecommunication services
Solving consumer complaints, resolve disputes, and special attention to be given to public interface
To provide widest possible range of services at reasonable prices
To emerges as a major manufacturing base and major exporter of telecommunication equipment
To protect the defense and security interests of the country Three types of service providers exist in the Indian telecommunication sector, like the following
State owned companies like - Bharat Sanchar Nigam Ltd, Videsh Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd
Private Indian owned companies like - Reliance Infocomm and Tata Teleservices.
Foreign invested companies like - Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications etc
2. COMPANY PROFILE
ITI LIMITED, PALAKKAD
ITI LIMITED, PALAKKAD was established in the year 1976, as the Nation‟s first Electronic Switching Systems
Production Unit. The Unit is situated in the Industrial corridors of Coimbatore and Kochi (Kanjikode) in the NH-47 and only 10 Km from Palakkad Town.
The Unit went into production in 1976 with a meager overall investment of Rs.26 Lakhs for producing 10,500 lines of small electronic exchanges of 10 to 50 Lines capacity. In 1980, the Unit was expanded with an investment of Rs.98 lakhs, to produce 60,000 lines of medium size electronic exchanges of 200 lines capacity. The product range at that stage included sophisticated microprocessor controlled Exchanges for Civilian and Defense use and Subscriber Line Routines used for maintaining the telephone lines.
In 1985, it was decided to establish manufacturing facilities for Digital Trunk Automatic Exchanges, with an investment of Rs.67.57 Crores. The planned capacity was to manufacture30,000 circuits of DTAX equipment, 50,000 lines of ILT and 50,000 lines of other exchanges totaling 1,60,000
lines apart from PCB manufacturing facilities. With some modifications within the overall investment, facilities were established to manufacture EIOB local exchanges also, thereby increasing the overall capacity to 2, 60,000 lines.
Quality of the products has been consistently good. The uncompromising attitude to Quality has fetched ITI Ltd., Palakkad, and the coveted Self-Certification Scheme for DTAX. Quality system in the unit was audited and certified to ISO-9002 QMS Standard inSept.‟93. The Unit has emerged successful through the surveillance audits conducted by IRQSand was reassessed and certified as per ISO9002:1994 version in 1996 and in 1999. ISO9001:2000 Edition Certifications was awarded to ITI Palakkad Unit during Sept.2002. The surveillance audit for QMS and the Certification audit for SMART card were successfully completed during Sept 2003 and ISO 9001:2000 edition Certification was awarded to ITIPalakkad unit for Smart card manufacturing during this audit. ISO 9001:2000 Edition 2nd Surveillance audit was successfully completed during September 2005 and subsequently Surveillance audit was successfully completed during September 2006
.Environmental Management System in Palakkad unit was audited by IRQS and certified to ISO 14001:1996 Standard in January 2005 and upgraded to 14001:2004 Edition in April2006.Subsequently Surveillance audit was conducted successfully during February 2007.
The unit is also engaged in the manufacture of OCB 283 switching system, in technical collaboration with ALCATEL-CIT. Total production capacity of the unit is ONE MILLION lines as per annum.
Over these years, the Unit has grown to become one of the World Class Manufacturing Plants, with the state-ofthe-art FUJI SMT Assembly Line, PCB Plant with a capacity of 10,000Sq. Meters of PCBs per annum. (Double sided equivalent).
Based on the consistent quality of the product and service, ITI Ltd, Palakkad is certified under Approved Inspection Scheme for supplying OCB 283 Core equipment to BSNL/MTNLwith effect from 23/06/99.
ITI Palakkad Unit has entered into the new business areas of Information Technology. Company has Introduced new products in order to exploit the business opportunities of ITSMART Card Manufacturing is started in 2001 in Palakkad Unit in collaboration with IncardItaly and manufacturing of SMART cards in collaboration with G&D Germany started from2005:Recently: in July 2007, manufacturing of SMART cards in collaboration with M/s Watch Data started. The unit is gearing towards the Approved Inspection Scheme for SIM Card Assembly.
ITI Palakkad has started the production of Multinational ID Cards for RGI during March-2007.
In order to meet the emerging needs of the customers as well as to develop cutting edge capabilities ITI has select strategic alliance with leading companies from around the world. The strategic alliance with M/s. Teklec Inc., USA for SSTP and collaboration with M/s. Tellabs, Finland are two backbone projects of ITI Palakkad.
Managed Leased Line Network is an integrated fully managed, multi-service digital network platform through which service provider can offer wide range of services at an optimal cost of Business subscribers. BSNL and MTNL are the two major customers. MLLN and its applications are beneficial to large sectors like banking, financial institutions, Stock Markets, News Paper Industry Broadcasting houses and Internet service providers etc.
ITI Limited, Palakkad, has a highly productive Plant equipped with modern facilities for Surface Mounted Devices (SMD) assembly and automated testing to ensure zero defect product and Printed Circuit Board (PCB) manufacture of various layer counts. They also have state-of-the art SIM Card Manufacturing and Personalization Centre, Modern Calibration Lab, Cable Assembly and Harnessing Equipments, PC based Microprocessor Development Systems and the latest Test Equipments. They are fully networked over a Local Area Network with more than 200 nodes connecting all the Departments along with VSAT connectivity with all the other manufacturing Plants.
TESTING & QA
The facility has highly sophisticated tools and programmes to test the functionality of the card, rack, cables and simulation activity based on the exact site installation layout. The Manufacturing Automation Protocol (MAP) Test, Integration Test and Climatic Test ensure a failure rate less than 2 %. The facility has been approved by BSNL with a Self Certification stature.
Supply, Installation & Commissioning the Company have an exclusive Product Support Centre and Customer Service Welcome Centre equipped with skilled technical personal and the latest test equipments, toensure 24x7 support services.
SMD Technology, PCB Assembly
Installation, Commissioning & Technical Support of exchanges
Nationwide Annual Maintenance Contract (AMC) for OCB
Complete turnkey implementation of Nationwide Managed Leased Line Network (MLLN) in collaboration with Tellabs
AMC for all the new products
Installation and commissioning of all the new solutions deployed like VoIP, MLLN, SSTP, IPTAX etc.
ITI has been included in the CPSU Consortium for the ongoing National Population Register program of Government of India in which the data would contain personal identity information like name, address and other family details of every individual above the age of 15 years.
2.2. IMPORTANT MILESTONES OF THE PALAKKAD PLANT Jan 1976 Inauguration of ITI Ltd, Palakkad by Dr. Shankar Dayal Sharma. Nov1982 Corner stone laid for phase-2 expansion by Sri.C.S.S Rao, CMD Mar1986 First batch of Switel Electronic Exchanges delivered to Indian Army. Dec1986 Corner stone laid for Phase-3 expansion Jan1987 The first E10B TAX (2K) delivered to Ernakulum Oct1987 A Telecommunication System designed by ITI for Neyveli Lignite Corporation Oct1988 First ILT manufacturered at Palakkad delivered to Minicoy Dec1987 The PCB Plant inaugurated Mar1990 Approved inspection scheme (self certification) for DTAX Sep1993 ISO 9002 Accreditation (1987 version) by IRQS. Mar1995 First E10B Local Exchange (5KL) delivered to Golconda Sep1993 ISO 9002 Accreditation (1987 version) by IRQS. Mar1995 First OCB-283 exchange delivered. Sep1995 First OCB TAX Pune 18 KC manufactured delivered to DOT. Oct1996 ISO 9002 (1994 version) Accreditation by IRQS. Oct 2003 ISO 9001 (2000 version) Accreditation by IRQS. Jun 2004 Development of SIM OS for 16K. Feb 2005 ISO 14001 Accreditation (EMS) by IRQS. Aug2005 Sri Y.K Pandey, CMD ITI Limited launched Web based Customer Relationship Management System for OCB AM
2.4. COMPONY AT A GLANCE LAND : 26 Acres
: An ISO 9001:2008& ISO 14001:2004 Certified Plant
: Large Digital Switching Exchanges-OCB 283. VRLA Battery (80 AH to 2000 AH). Smart Cards. VOIP Products. Managed Leased Line Networks(MLLN) Multi-layer PCBs. SSTP
NO. OF EMPLOYEES
: MORE THAN 500 OFFICERS-299 NON-OFFICERS-264
: WELL TRAINED TECHNICAL AND NON- TECHNICAL
3. RANGE OF PRODUCTS
Large Digital Switches and Digital Trunk Exchanges (OCB)
Double Sided & Multi Layer Printed Circuit Boards (PCB)
Assembly of state-of the-art Surface Mounted Devices (SMD)
SIM Cards / Smart Cards / National ID Cards
New Generation Network (NGN) Equipment
Network Management Systems(NMS)
Managed Leased Line Network (MLLN)
Voice over Internet Protocol (VoIP)
Virtual Private Network (VPN)
Stand-alone Signaling Transfer Point (SSTP) Equipment
Integrated Manufacturing Management System (IMMS) and other customized software
Commercial department acts like oil in the machine for the organization. It has to be performing various activities related to the money required for running the business successfully; also it has to take various important decisions which are mostly irreversible in nature. The commercial dept. of company is totally handled by the higher authority of the corporate. Basically it includes different financial concept like: Excise duty, service Tax, dispatching of products. Commercial department is very keen and sensitive department because it is concerned with the each and every department. In commercial dept. the transactions related to the co. are done. When the orders are given by the customers, the process of transaction starts. There is some documentation which is very important to do in the commercial dept. It deals with the accounts, dispatching, indirect taxes etc.
4. DEPARTMENT PROFILE
4.1 HUMAN RESORCE
4.3 METERIAL PLANNING
4.4 PRODUCTION PLANNING
4.9 INDUSTRIAL ENGINEERING
4.1 HUMAN RESORSE DEPARTMENT
The Human Resources department, working with people from other departments, is responsible for the people in the organization. This often includes: The Human Resources Department is responsible for managing human resources of an organisation – the employees. The Human Resources Department focuses on meeting the needs of all employees and ensuring that the work environment is a healthy and safe one at all times. In order to understand the purpose of the Human Resources function, let‟s look at the different tasks that are carried out by the Human Resources Department.
Hiring (including recruiting candidates, the interview process, negotiations, and signing contracts) Employee benefits Training and continued professional development Annual appraisals (in many companies) Promotions and raises Warnings and layoffs The HR department works with the employees' managers for some of these tasks.
Objectives of H.R.D.:The H.R.D. has following objectives: To facilitate realization of lean and effective organization. Create businesses and strategic thinking. Build managerial and technical competencies. Promote a culture of achievement and excellence. Improve quality of work life in organizations. Encourage empowerment of team and individuals. Improve organizational learning. Optimize resources utilization and create atmosphere of cost consciousness. Create financial edge to finance in purchase of the customers.
Human Resources Department
The Role of HR Department
1. Recruitment The Human Resources Department is responsible for recruiting potential candidates for the job. In order to do this effectively, there are a number of steps involved in the recruitment process: 1. Preparing a JOB DESCRIPTION – this clearly describes the nature of the job and what it involves. 2. Preparing a PERSON SPECIFICATION – this clearly describes the type of person the organisation believes will best suit the job. 3. Advertising the vacancy – it is important that the Human Resources team identifies the most suitable place to advertise e.g. Local newspaper; Internet; radio etc. 4. Determining if the job should be advertised INTERNALLY or EXTERNALLY. Internal recruitment means that an existing employee is given the job (promoted) whereas external recruitment means that the successful candidate comes from out with the organisation.
2. Selection The Human Resources Department is responsible for selecting the best candidate for the job. In order to do this effectively, there are a number of steps involved in the selection process: 1. Gather all the applications forms received and identify the most suitable candidates. 2. Arrange interviews for the selected candidates. Normally, there are at least 2 rounds of interviews: the first one is referred to as the LONG LEAT usually consisting of 6 – 8 candidates. The most successful 2 or 3 candidates would then be invited back for a second interview referred to as the SHORT LEAT. 3. Once references have been consulted, the successful candidate will be informed of their success and be offered the job. 4. It is then important for all the unsuccessful candidates to be thanked for their interest in the organisation and provided with feedback as to why they didn‟t get the job.
3. Calculating Wages The Human Resources Department is responsible for ensuring that each employee receives the correct amount of pay. The rate of pay depends upon the amount of hours the employee has worked: 1. FLAT RATES 1. The employee is paid by an hourly rate. For example, £4.50 an hour. 2. TIME RATES 18
1. The employee is paid depending upon the length of time he/she takes to complete the job. 3. OVERTIME RATES 1. For every extra hour of overtime the employee works, he/she receives a higher hourly rate. 4. PIECE RATES 1. Depending upon how much the employee produces, will determine how much he/she gets paid. 4. Training The Human Resources Department is responsible for ensuring that each employee receives appropriate training to ensure that they know how to do their job and that their skills are developed regularly. Training courses are provided either in-house or at external venues whereby more specialist staff can train the employees. If the Human Resources team ensure that the workforce is receiving up-to-date training opportunities this will mean that the employees will be motivated and keen to develop. This will result in a happier and more productive workforce.
Materials management plans and designs for the delivery, distribution, storage, collection, and removal of occupant-generated streams of materials and services. It is usually an additional service that is offered as part of a campus planning process or a building design project. It is most beneficial for university, health care, and corporate environments. Materials management looks at the planning and design considerations needed to support the efficient delivery and removal of goods and services that support occupant activity. The streams of occupantgenerated materials and activity include mail, office supplies, lab supplies, food, special deliveries, custodial services, building supplies, waste and recycling, and service calls. A materials management plan may include planning guidelines or full design for the following:
Truck delivery and service vehicle routes, to reduce vehicle / pedestrian conflict Loading docks and delivery points, to increase accommodation and reduce queuing and vehicle idling Service equipment and utility infrastructure relocation or concealment, to improve aesthetics and realize landscaping goals
Regulatory and operation planning
The effective materials management plan builds from and enhances an institutional master plan by filling in the gaps and producing an environmentally responsible and efficient outcome. An institutional campus, office, or housing complex can expect a myriad of benefits from an effective materials management plan. For starters, there are long-term cost savings, as consolidating, reconfiguring, and better managing a campus‟ core infrastructure reduces annual operating costs. An institutional campus, office, or housing complex will also get the highest and best use out of campus real estate. An effective materials management plan also means a more holistic approach to managing vehicle use and emissions, solid waste, hazardous waste, recycling, and utility services. As a result, this means a “greener,” more sustainable environment and a manifestation of the many demands today for institutions to become more environmentally friendly. In fact, thanks to such environmental advantages, creative materials management plans may qualify for LEED Innovation in Design credits. And finally, an effective materials management plan can improve aesthetics. Removing unsafe and unsightly conditions, placing core services out of sight, and creating a more pedestrian-friendly environment will improve the visual and physical sense of place for those who live and work there.
It should be obvious that there is no single pattern for the organization of the production planning and control activity. In many small plants the routing, loading, and scheduling functions may well be included in the duties of the operating line; the shop manager, superintended, and foremen. But it is difficult to combine day-to-day work with adequate planning, and as a result it is often more feasible to break away the production planning and control functions and assign them to qualified specialists. These groups should be organized as staff sections normally reporting to the top manufacturing executive. Centralized Production Planning and Control Centralization or decentralization of duties of the production control staff depends upon the design of the production planning and control system. In a completely centralized setup, determination of shipping promises; analysis of sales, stock, and shop orders; preparation of routes, load charts, and schedule charts; and dispatching of work to the shop complete with job tickets and all other necessary paper would be accomplished by a central production planning and control unit. In addition, as work is completed, a careful analysis of the actual performance would be made, and if corrective action were required, it would be initiated by this group.
Relation to Other Functions Good relationships with all the other functions in the enterprise are essential to effective production planning and control. Full cooperation with the marketing group is necessary, particularly in view of the importance of market conditions and the goodwill of customers. Both product engineering and process engineering must keep production planning and control informed as to their plans to avoid the manufacture of goods either to incorrect specifications or by an improper method. Measurement of Effectiveness In determining the effectiveness of a production planning and control system, there are quite a few problems. The key criterion might well be whether or not shipping promises are being kept – the percentage of the order shipped on time. This, however, would not be a true criterion if Excessive overtime of expediting costs were involved in getting any of these orders shipped. The cost of the control system in relation to the value of goods shipped is another possibility. Again, however, this may not be sound: if markets slump, a bad ratio will develop. Many good Production planning and control systems have been discontinued because of “high costs” under these conditions- and have never revived after business picket up.
In a study of benefits and costs of computerized production planning and control systems, Schroeder et al. list the following performance criteria by which production planning and control
Systems might be judged: 1. Inventory turnover 2. Delivery lead time 3. Percent of time meeting delivery promises 4. Percent of orders requiring “splits” because of unavailable material. 5. Number of expeditors 6. Average unit cost.
Store keeping is an important function of material management. It is a primarily service function in which the store keeping acts as custodian of all the items kept in the store. Store is the connecting link between the shops as work place and the production control department. STORE FUNCTION: RECIVE STORE ISSUE
Only QA passed Items are accepted in the store
Setting up different locations Hangers Racks Shelves Bins
Receive a valid transaction document Enter in the LAN system Note transaction sequence number Issue the item Update bin card Make entry in relevant control requesters.
STRATEGY FOR FIXING LOCATION Size/weight of the item Frequency of usage Nature of the item Shelf life of the item Volume of the item
TRANSACTION DOCUMENT FOR RECIEPT
IGA DELIVERY TICKET SRN
On receipt of the Bill of Lading Request the shipping section will, as necessary, prepare, and weigh items; select appropriate mode of transportation based on size of shipment and requested delivery date; make arrangements with the carrier for pick-up of shipment; issue Government Bill of Lading and related documents that may be needed; provide the requesting organization with a copy of bill of lading, including routing and estimated cost; provide assistance when needed in preparing documentation relating to loss and/or damage claims. Packing: The shipping section, upon request and as work load permits, will perform packing using containers provided by the shipping organization or standard boxes and packing material stocked by the shipping section. Specialized packing and crating will be the responsibility of the requesting organization or may be provided by the shipping section through a contractor with charges paid by the requesting organization.
Effective documentation offers opportunities for improving productivity in the workplace. Effective documentation makes information easy to find, use and understand when organized in a logical format.
It can be of particular use to:
management and employees contractors regulators with auditing powers New staff/contractors other building consent authorities when considering shared service arrangements. Documentation is not leisure reading; it is used to inform and answer questions or to solve problems. All (organization‟s name's) building consent authority processes and procedures should be created using the organization‟s document template. This template may contain the following.
Document title Responsibility for process maintenance Document control information (i.e., date, version, etc.) Table of contents
Commercial department acts like oil in the machine for the organization. It has to be performing various activities related to the money required for running the business successfully; also it has to take various important decisions which are mostly irreversible in nature. The commercial dept. of company is totally handled by the higher authority of the corporate. Basically it includes different financial concept like: Excise duty, service Tax, dispatching of products .Commercial department is very keen and sensitive department because it is concerned with the each and every department. In commercial dept. the transactions related to the co. are done. When the orders are given by the customers, the process of transaction starts. There is some documentation which is very important to do in the commercial dept.
SALES AND BILLING
INDUSTRIAL ENGINEERING DEPARTMENT
Industrial engineering is a branch of engineering dealing with the optimization of complex processes or systems. It is concerned with the development, improvement, implementation and evaluation of integrated systems of people, money, knowledge, information, equipment, energy, materials, analysis and synthesis, as well as the mathematical, physical and social sciences together with the principles and methods of engineering design to specify, predict, and evaluate the results to be obtained from such systems or processes. Its underlying concepts overlap considerably with certain business-oriented disciplines such as operations management, but the engineering side tends to emphasize extensive mathematical proficiency and usage of quantitative methods. While the term originally applied to manufacturing, the use of "industrial" in "industrial engineering" can be somewhat misleading, since it has grown to encompass any methodical or quantitative approach to optimizing how a process, system, or organization operates. Some engineering universities and educational agencies around the world have changed the term "industrial" to broader terms such as "production" or "systems", leading to the typical extensions noted above. In fact, the primary U.S. professional organization for Industrial Engineers, the Institute of Industrial Engineers (IIE) has been considering changing its name to something broader (such as the Institute of Industrial & Systems Engineers), although the latest vote among membership deemed this unnecessary for the time being. The various topics of concern to industrial chain engineers include management science, financial
research, systems engineering, ergonomics / safety engineering, cost and value engineering, quality engineering, facilities planning, and the engineering design process. Traditionally, a major aspect of industrial engineering was planning the layouts of factories and designing assembly lines and other manufacturing paradigms. And now, in so-called lean manufacturing systems, industrial engineers work to eliminate wastes of time, money, materials, energy, and other resources. Examples of where industrial engineering might be used include designing an assembly workstation, strategizing for various operational logistics, consulting as an efficiency expert, developing a new financial algorithm or loan system for a bank, streamlining operation and emergency room location or usage in a hospital, planning complex distribution schemes for materials or products (referred to as Supply Chain Management), and shortening lines (or queues) at a bank, hospital, or a theme park. Industrial engineers typically use computer simulation (especially discrete event simulation), along with extensive mathematical tools and modeling and computational methods for system analysis, evaluation, and optimization.
Work Study i) Methods Study ii) Systems Study and Improvement iii) Job Standards and Work Norms Development iv) Optimal Crew Sizes determination v) Development of PERT Charts for various tasks (Maintenance, Erection, District Preparation etc…)
Manpower Wage Cost constitutes major component of Total Production Cost. Hence to contain the Cost continuous monitoring of the Manpower Resources is given top priority by the Company right from the beginning for Optimal Utilization of Manpower.
i. ii. iii. iv. v. vi. vii. viii. ix.
Manpower Planning Skill Sets Requirement Redeployment Transfers Promotions Performance Monitoring Identifying surplus Manpower and introduction of VRS Advance Planning of Manpower of various skills
Need for IEs in changing Scenario
Liberalization, Privatization & Globalization is the order of the day and Coal sector is no exception. Improvement of Productivity and improvement of quality and reduction of Cost are the saviors of Coal Industry. Industrial Engineers role in reducing/containing production cost by improving Productivity is more relevant now to keep the company
stay competitive and progress further.
The Reports/Recommendations of IED are not always palatable to all. Hence requires consistent support from Top Management.
SALES & BILLING DEPARTMENT
The Sales Department is responsible for making sure that the customer is happy. Employees in the Sales Department are responsible for building a positive relationship with the customer. In order to understand the purpose of the Sales function, let‟s look at the different tasks that are carried out by the Sales Department.
PHONE:04912566010,(4 LINES),2567575(DIRECT),FAX:0491-2566009 Product/Project:
Email:firstname.lastname@example.org Website : www.itiltd_india.com (An ISO 9001:2008 & ISO 14001:2004 Certified Plant) Price Status:
Excise Range: I-C Mettupalayam Street, Palakkad, Excise Division I, Mettupalayam Street, Palakkad. Excise Commissionerate: Kozhikode Invoice issued under Central Excise rule no.11,Pre-Authentication Exempted vide TN79/98 dt 17.08.98
ECCNO SERVICE TAX REG NO PAN NO CST NO
Tariff Heading Paying Authority
KVAT TIN NO
Tender Code : Tender Ref: APO Ref: PO Ref: Site Name: Sl. No. Code & Description Date: Date: Duty % Qty. Rate Value APO Code PO Code Wk Ord No : : :
Date & Time of Preparation: Date & Time of Removal: Packing Case Number: GC Number &Date Sl. No:
Grant Total in words Total ED in words
Total Ser. Tax in words: For ITI LIMITTED Palakkad Pre-Receipted Bill Passed for Payment Received Payment
(AUTHORISED SIGNATORY) AAO / AO PAO / AO
Certified that particulars given above are true and correct the amount indicated is provisional as the price is note final. The amount indicated represents the price actually charged and there is no flow of additional consideration directly or indirectly from the buyer.
INVOICE / BILL NUMBER
Registered & corporate office: ITI Bavan, Dooravani Nagar, Bangalorr-560016; Production Units: Bangalore, Naini, Rae Bareli, Mankapur, Palakkad, And Srinagar
The Purchase department of ITI LTD. Plays a very important role, because purchasing has its effect on every vital factor concerning the manufacture, quality, cost, efficiency, and prompt delivery of goods to customers. Its function is to procure materials, supplies, services, machines and tools at the most favorable terms consistent with maintaining the desired standard of quality. The main function of the purchasing department is firstly register suppliers and secondly placing the purchase order.
Registration of suppliers: The suppliers are sent the registration form The respective buyers are identified Scrutinize the information provided by the supplier Arrange for a visit by concerned personnel if necessary Include the name of approved suppliers in the list of Suppliers.
Functions of purchase dept.: Maintains relationship between co. and vendor It works on vendor evaluation Helps in finalization of price of products and cost reduction Supports to custom clearance# helps in rates amendment process Executives of the dept. go for vendor visit, prepare contract letters with its vendors
Marketing has its origins in the fact that man is a creature of needs and wants. Needs and want create a state of discomfort in persons and they tend to get object those needs and wants. The size of the market depends upon the number of persons who have both: 1) An interest in the product and 2) are willing to offer something in exchange of products
Functions of marketing Department:-
Product management Product promotion Market Intelligence
B. Sales co-ordination
Price conformation Sales statistics Co-ordination with regions for sales & execution
C. After Sales service
Complaint Registration Co-ordination with QA for site commissioning support
QUALITY ASSURANCE DEPARTMENT
Quality assurance department actually deals with final product that is assuring its quality or rather maintain its quality to the best this assurance of quality to the best. This assuring of quality is given either in process of manufacturing itself or after the completion of the product. Thus there are two main types of quality assurance namely:-
1. Line quality assurance
2. Inward inspection
Line Quality assurance:-
In line quality assurance, frequent checking or inspection is done of any part during the manufacturing process. Here any part is taken and then tested, if it gives positive or desired result then it is preceded further. But if the result is not positive then there is a thorough inspection is tested again & again. In this checking process eight to ten people are involved.
The inward inspection is done when the parts are purchased from the vendors. The parts which come from vendors are inspected properly by the inspector or engineer or technician and then if it is ok then the part is allowed to go to the production department. If the part is found faulty in the first inspection, the whole bunch of the parts are sent back to the vender and asked for new one.
The function of production department is to convert input to output. In production department the production manager has some responsible for making sure that raw material is provided and made in finished goods effectively, and make sure that work id carried out smoothly it is closely related to other departments like HRM, Finance etc
Material issued on sub assembly
FUNCTIONS OF PRODUCTION DEPARTMENT
The functions of Production Management depend upon the size of the firm. In small firms the Production Manager may have to look after production planning and control along with Personnel, Marketing, Finance and Purchase functions. In medium sized firms, there may be separate managers For Personnel, marketing and Finance functions. But the production planning and control and Purchase and stores may be under the control of Production management department. In large sized firms the Activities of Production Management are confined to the management of production activities only. As Such, there are no hard and fast rules or guidelines to specify the function of Production Management, but in the academic interest we can mention some of the functions, which are looked after by the Production Management department. They are: (i) Materials: The selection of materials for the product. Production manager must have sound Knowledge of materials and their properties, so that he can select appropriate materials for his Product. Research on materials is necessary to find alternatives to satisfy the changing needs of the design in the product and availability of material resumes. (ii) Methods: Finding the best method for the process, to search for the methods to suit the available resources, identifying the sequence of process are some of the activities of Production Management.
(iii) Machines and Equipment: Selection of suitable machinery for the process desired, designing the maintenance policy and design of layout of machines are taken care of by the Production Management department.
(iv) Estimating: To fix up the Production targets and delivery dates and to keep the production costs at minimum, production management department does a thorough estimation of Production times and production costs. In competitive situation this will help the management to decide what should be done in arresting the costs at desired level.
(v) Loading and Scheduling: The Production Management department has to draw the timetable for various production activities, specifying when to start and when to finish the process required. It also has to draw the timings of materials movement and plan the activities of manpower. The scheduling is to be done keeping in mind the loads on hand and capacities of facilities available.
(vi) Routing: This is the most important function of Production Management department. The Routing consists of fixing the flow lines for various raw materials, components etc., from the stores to the packing of finished product, so that all concerned knows what exactly is happening on the shop floor.
(vii) Dispatching: The Production Management department has to prepare various documents Such as Job Cards, Route sheets, Move Cards, Inspection Cards for each and every component of the Product. These are prepared in a set of five copies. These documents are to be released from Production Management department to give green
signal for starting the production. The activities of the shop Floor will follow the instructions given in these documents. Activity of releasing the document is known as dispatching.
(viii) Expediting or Follow up: Once the documents are dispatched, the management wants to know whether the activities are being carried out as per the plans or not. Expediting engineers go round the production floor along with the plans, compare the actual with the plan and feed back the progress of the work to the management. This will help the management to evaluate the plans.
(ix) Inspection: Here inspection is generally concerned with the inspection activities during production, but a separate quality control department does the quality inspection, which is not under the control of Production Management. This is true because, if the quality inspection is given to production Management, then there is a chance of qualifying the defective products also. For example Teaching and examining of students is given to the same person, and then there is a possibility of passing all the students in the first grade. To avoid this situation an external person does correction of answer Scripts, so that the quality of answers are correctly judged.
(x) Evaluation: The Production department must evaluate itself and its contribution in fulfilling the corporate objectives and the departmental objectives. This is necessary for setting up the standards for future. Whatever may be the size of the firm; Production management department alone must do Routing, Scheduling, Loading, Dispatching and expediting. This is because this department knows Very well regarding materials, Methods, and available resources etc. If the firms are small, all the Above-mentioned functions (i to x) are to be carried out by Production Management Department. In medium sized firms in addition to Routing, Scheduling and Loading, Dispatching and expediting, some more functions like Methods, Machines may be under the control of Production Management Department. In large firms, there will be Separate departments for Methods, Machines, Materials and others but routing, loading and scheduling are the sole functions of Production Management. All the Above ten functions are categorized in three stages, that is Preplanning, Planning and control stages as Shown in figure
* * * * * *
Product development resources
Planning for 4 resources
Process design Materials Sales forecasting and estimating Estimating,
Plant location Plant layout and Layout of facilities Equipment policy
* * *
← Pre Planning Stage→ | ← Planning Stage → | ← Control
M/s ITI Ltd., Bangalore seeks your co-operation in order to keep a vigil on the activities of un-scrupulous elements. Written grievances, if any, duly signed with complete address may please be sent to the CMD / CVO at the Registered & Corporate Office or to the Unit Heads / Unit Vigilance Heads at the addresses as mentioned below:
Contact Information Of Responsible Authority
Chairman & Managing Director
PHONE : +91-080- 25614422/25614466 FAX : +91-08025614400 PHONE : +91-080-25618290/25614466 Ext-2215 FAX :+ 91080-25617803
Chief Vigilance Officer
Table 1.2 Vigilance Corporate Office Unit Heads & Unit Vigilance Heads
Responsible Authority Postal Address Of Responsible Authority BANGALORE COMPLEX,P.O. DOORAVANI NAGAR, BANGALORE – 560 016 BANGALORE COMPLEX,P.O. DOORAVANI NAGAR, BANGALORE – 560 016 BANGALORE COMPLEX, P.O. DOORAVANI NAGAR, BANGALORE – 560 016. NS UNIT, P.O. DOORAVANI NAGAR, BANGALORE–560 016. NS UNIT, P.O. DOORAVANI 2.2 CM [VIG], NS UNIT NAGAR, BANGALORE– 560 016 ITI LTD., P.O. ITI Township, 3.1 GM , Mankapur Mankapur, Distt. GONDA [U.P.] Pin - 271 308. Contact Information Of Responsible Authority
GM [BANGALORE COMPLEX] GM
PHONE: +91(80)25651340 FAX NO:+91(80)25650400
[R&D]BANGALORE PLANT DGM [HR & VIGILANCE]
PHONE :+9125650800 FAX NO:+9125650971 PHONE:+9125651144 28503633 FAX NO:+91 25651724 PHONE: +9125662282-83 FAX NO:+91(80)25660525 PHONE: +91(80)25660517 FAX NO:+91(80)25660510
GM [NSU] BANGALORE
PHONE : +91(05265)230202 FAX NO.: +91(05265)230199/119/213
DM [VIG], MANKAPUR
ITI LTD., P.O. ITI Township, Mankapur, Distt. GONDA [U.P.] Pin - 271 308. ITI LTD., MIRZAPUR ROAD, NAINI, ALLAHABAD [U.P.] – 211 010. ITI LTD., MIRZAPUR ROAD, NAINI, ALLAHABAD [U.P.] – 211 010. ITI LTD., DOORBHASH NAGAR
PHONE: +91(05265)230194 / 273353 FAX NO:+91(05265)230179/0199 PHONE: +91(0532)26867481/ 2682220 FAX:NO:+91(0532)2687345/2686008 PHONE:(0532) 2686600(O) M:+919450603845 PHONE: +91(0535)2202603 FAX NO:+91(0535)2202454 / 2203987 / 2202589 PHONE: +91(0535)2287279 FAX NO:+91(0535)2202454
GM, NAINI PLANT Chief Manager
(Vigilance), NAINI PLANT
P.O. ITI 229010.
CM [VIG], RAEBARELI
ITI LTD., DOORBHASH NAGAR P.O. ITI RAE BARELI, [U.P.] 229010 ITI LTD., KANJIKODE WEST,
PALAKKAD 678 623.
PHONE: +91(0491)2566004 FAX NO:+91(0491)2566009
ITI LTD., KANJIKODE WEST, PALAKKAD 623 ITI LTD., BUSINESS CO[KERALA] – 678
PHONE: +91(0491)2566957 FAX NO:+91(0491)2566009
AGM(J&K Cell) New Delhi
ORDINATION OFFICE: IST FLOOR, 7 LODHI ROAD, NEW DELHI – 110 003 ITI LTD.,SRINAGAR PLANT,
TELE PHONE: +91(011) 24321705 FAX NO:+91(0194)24362666
AO[HR & VIG] SRINAGAR
HYDERPORA, PEERBAGH, NEW AIRPORT ROAD, SRINAGAR [J&K] – 190 014 ITI LTD. GSM-BSNL PROJECT,
PHONE: +91(0194)2431867 FAX NO:+91(0194)2431726
GM-GSM, BSNL, Pune
415, 4TH FLOOR, ARORA TOWERS(EAST WING) M.G. ROAD, PUNE - 411001 ITI LTD. GSM-BSNL PROJECT,
PHONE: +91(020)26054220 FAX NO:+91(020) 26113292
CM(HR&VIG)GSM, BSNL, PUNE
415, 4TH FLOOR, ARORA TOWERS(EAST WING) M.G. ROAD, PUNE - 411001 ITI LTD, GSM, MUMBAI, TRADE
PHONE: +91(020)26058728 FAX NO:+91(020)26113292
AVENUE, 260 SUREN ROAD, OFF ANDHERI KURLA ROAD, ANDHERI EAST, MUMBAI- 400 093
PHONE: +91(022) 26832402 FAX NO:+91(022) 26832401
MANAGER(HR&VIG) GSM, MTNL, MUMBAI
ITI LTD, GSM, MUMBAI, TRADE AVENUE, 260 SUREN ROAD, OFF ANDHERI KURLA ROAD,
PHONE: +91(022)26832415/16 EXT. 24 FAX NO:+91(022)26832401
ANDHERI EAST, MUMBAI-400 093
INTERNAL AUDIT DEPARTMENT
SCOPE & FUNCTIONS
3.1 The scope of Internal Audit is very wide and cannot be laid down precisely. However, broadly Internal Audit is concerned with any phase of business activity which can be the basis of service to Management.
3.2 Internal Audit can focus the factors responsible for loss, failure or inefficiency so that they are rectified immediately, if possible, or measures can be taken to avoid their recurrence in future.
3.3 The main duties and functions of Internal Audit, inter alia, are broadly classified as under: i) Systems Audit
ii) Operational Audit including Efficiency Audit
iii) Management Audit
3.4 Since Internal Audit is a Management tool, its object is to assist the Management at various levels by providing it in time with objective analysis, appraisals, pertinent comments and recommendations in respect of the
Company's affairs to enable the Management to take timely remedial action. Simplification of procedures, setting up of effective and efficient co-ordination between departments, gearing up of internal controls, cost reduction by minimization of wastages in various operations, revenue augmentation by proper inventory controls and maximum utilization of machines, materials and Management. manpower are some of the areas where Internal Audit can assist
3.5.1 Systems Audit: Ensuring that the rules and procedures as laid down by the Company from time to time are properly understood correctly interpreted and complied with by the concerned personnel of the departments/units/tea estates of the Company is Systems Audit. The audit involves verification as to whether each deportment/unit/tea estate is maintaining proper records and having a reasonable system of recording receipts, issues end consumption of materials and stores and the system provides for proper allocation of the materials consumed, man hours spent and overheads incurred to the relative jobs. Improvements over the existing procedures need also be suggested, whenever necessary. When a change in the system is felt, only general recommendations should be indicated leaving the detailed system to the concerned department‟s / unit‟s / tea estate's personnel.
3.5.2 Operational Audit including Efficiency Audit : The functions of operational audit is to ensure that Management controls are functioning effectively and efficiently in all the business activities of the Company and all the operations are in tune with its objectives. This audit includes review of organizational structure, manufacturing processes, production planning and scheduling, adherence to prescribed technicalities in purchasing 44
and other functions as apply to Govt. Companies to bring about overall efficiency. Audit examines that the broad and accepted principles of commercial accounting and practice have been consistently followed and any deviation from them is properly authorized and disclosed in the relevant statements. It sees that all transactions carried out are authorized and substantiated by proper vouchers / documents. 3.5.3 Management Audit: It is basically an audit of Management's policies and the Department‟s / Unit's / Tea Estate's adherence to the same, its performance and efficiency and measuring of the profitability and productivity of capital invested. The main function of Management Audit is to review the efficiency or otherwise of all operations and see that the affairs of the Company are conducted on healthy lines. Other important areas in which this type of audit is applied are inventory controls, investment planning and decision making, optimum utilization of capacity and reduction and control of various costs and the like.
3.6 For conducting audit effectively and efficiently, the Internal Audit Department shall study thoroughly the systems and procedures followed by the company's various departments, units And tea estates and their nature of work before commencing the audit. As the extent and type of checks to be applied in audit depend largely upon the nature of operations carried out, study of these systems and operations is of prime importance. The existing departmental checks / controls need also to be studied for the purpose and it should be ensured that they are adequate enough to bring to light any errors and frauds automatically in the normal course of carrying out operations in different departments / units / tea estates.
3.7 The General Manager (Internal Audit) / Chief Internal Auditor would keep proper record of all the decisions of the Board / Management and relevant Govt. Notifications etc.
3.8 For discharging the above functions, Internal Audit Department shall have full
and free access to all
departmental / Unit's / Tea Estate's records including those considered confidential and copies of minutes of Board Meetings, Management Committee Meetings, Management Circulars, Management Decisions and Orders, Govt. Circulars and Orders. Important orders/circulars/procedures issued by the Management find various Govt. departments shall invariably be endorsed to the General Manager (Internal Audit) / Chief Internal Auditor. Copies of all queries raised by Statutory / Govt. Auditors shall also be endorsed to Internal Audit. Confidential records / documents shall, however, be examined by the General Manager (Internal Audit) / Chief Internal Auditor only.
4. INTERNAL AUDIT PROCEDURE
4.1 As the operations and records to be audited era multifarious and varied in nature, it is not possible to lay down within the frame of this manual a comprehensive set of instructions / procedures for carrying out the audit. However, relevant instructions / procedures for carrying out audit will be issued from time to time to Internal Audit personnel by the General Manager (Internal Audit) / Chief Internal Auditor, depending on the nature of each assignment. 45
4.2 Internal Audit is usually conducted by means of test checks of items selected on the basis of random sampling or on percentage basis or specified monetary limits that may be decided upon from time to time depending on the situation. The degree of test checks may be varied according to the findings of audit. If audit reveals more irregularities, checking /verification will be strengthened. Audit coverage of all departments / units / tea estates and transactions is subject to availability of Audit personnel.
The extent of examination of individual transactions would depend upon the system of controls in each
department/unit/tea estate and its operation in practice and the measures instituted by Management for the protection of Company‟s properties / interest. In case these controls and measures are working effectively, a test chock of the records may be resorted to instead of detailed checking. However, depending upon each case, past experience and Statutory and Govt. Auditors‟ observations, audit may be carried out either in depth or by test checking.
5. AUDIT PROGRAMME & REPORTS
5.1 For conducting internal audit effectively and systematically, a programme of audit for a year will be prepared well in advance and got duly approved by the Chairman. The Internal Audit Year normally commences on 1st July and ends on 30th June. This may be changed as and when found necessary. For drawing up such annual internal audit programme, the available working days in such internal audit year would be worked out. From this, privilege leave days (at present, 30 days) and an estimated number of days for sick leave (at present estimated at 10 days) would be deducted. The net figure of working days would be multiplied by the number of executives in the Internal Audit Dept. to arrive at the man days available in the Internal Audit Year. 10% of this would be set aside for contingencies and the balance man days would be allocated over suitable number of jobs to cover areas in each of the Departments / Units / Tea Estates in such a manner that over a period of 3 years all areas of each Dept. / Unit / Tea Estate would be covered in audit at least once. For conducting outstation audits, transit time would have to be provided.
5.2 Care should be taken while drafting the program to include all important areas for review, and depending upon the strength of the Audit personnel, as many departments / units / tea estates as possible should be covered in the audit programme. To minimize objection of Statutory / Govt. Auditors on the Company‟s accounts, their previous observations and objections should be kept in view while preparing the programme.
5.3 The audit work will be allotted among the Internal Audit personnel by the General Manager (Internal Audit) / Chief Internal Auditor. Internal Audit Department, as far as practicable, should adhere to the approved programme. Any deviation from the approved annual audit programme found necessary will be made with the concurrence of the Chairman, Director (finance) / Financial Controller.
5.4 Normally prior intimation of the probable dates of audit would be sent to the concerned Chief Executive / General Manager / Superintendent and operational heads of departments / units / tea estates so that they can give necessary instructions to relevant officers to make available the requisite documents, files and records for audit. However, in cases where the audit is to be conducted by surprise or urgently on the instructions of Management, prior notice is not necessary.
5.5 The following procedure should normally be followed by the Internal Audit Department for clearing the audit queries and drafting the final reports:
A. As far as possible, the queries arising during course of audit would be discussed personally by the Internal Audit personnel working on the respective assignments with the concerned department/unit/tea estate and settled then and there.
B. Where a query is of such nature which requires further investigation by the concerned department / unit / tea estate and thus cannot be replied immediately, an audit memo would be issued which invariably is to be replied by the auditee department / unit / tea estate within 7 days of the receipt of the memo. This time span should not be exceeded unless special circumstances warrant more time which will be mutually agreed upon between the audittee department / unit / tea estate and the Internal Audit personnel.
C. If any matter requires immediate attention and cannot wait till the final report, then the same shall, after obtaining comments from the Chief Executive /General Manager / Superintendent and operational heads of the department / unit / tea estate, be reported in the form of a progress / interim report.
D. When the audit of a particular department/unit/tea estate is concluded, the Internal Audit personnel who conducted the audit will put up to the General Manager (Internal Audit) / Chief Internal Auditor through Senior Manager(Internal Audit) a draft report on audit findings using the time earmarked in each job for the same. Normally this will be done within 7 days of completion of the audit. Matters which require further enquiry and / or discussion shall be deferred for inclusion in a supplementary report, or if necessary, shall be deferred for next visit of Internal Audit to the department / unit / tea estate. Such draft report will be forwarded to the respective Chief Executive / General Manager / Superintendent by the General Manager (Internal Audit) / Chief Internal Auditor and within 10 days of the date of receipt of the same, comments shall have to be given by the respective Chief Executive / General Manager / Superintendent and / or by the operational heads of the departments / units / tea estates or a discussion shall be held on the draft report, minutes of which shall be drawn up, signed and dated. In the case of outstation audits (Tea Estates and Branches), 21 days will be given from the date of dispatch (to take care of the transit time etc.) for comments to be received by Audit. If within 10 days or 21 days, as the case may be, comments are not obtained / discussion is not held, the General Manager (Internal Audit) / Chief Internal Auditor will finalize the report on the basis of audit findings in the draft stage. Comments of the Chief Executive / General 47
Manager / Superintendent and / or operational heads of departments / units / tea estates, if subsequently received, shall be given due cognizance in the follow-up on the report.
E. Should the Chief Executive / General Manager / Superintendent and operational heads of the departments / units / tea estates hold any views which are net in consonance with the Internal Audit findings and / or feel that further clarification is to be given, the matter may be referred by them to the Chairman with a copy to the General Manager (Internal Audit) / Chief Internal Auditor for Chairman's final disposal.
F. The final report in which will be incorporated the outcome of comments /discussion referred in (d) above shall be submitted by the General Manager (Internal Audit) / Chief Internal Auditor to the respective Chief Executive /General Manager / Superintendent and operational heads of the departments / units / tea estates with a copy to the Chairman, Director (Finance) and Financial Controller highlighting the final results of audit. G. In order to make the audit report more clear and simple, and to convey what exactly it intends to convey and serve a useful purpose, the following main points should be borne in mind while drafting audit reports :
Report must be simple and brief but comprehensive;
It should contain appropriate headings;
In the report will be incorporated all irregularities & objections which have not been replied or replied unsatisfactorily and those replied satisfactorily but have financial implications which were found during personal discussions or as per memos issued ;
Where Audit is satisfied with its findings on examination of any area during the course of a particular audit assignment, mention will be made of the same in the report;
The matter shall be presented according to significance i.e. most important points will be highlighted;
Suggestions, where necessary, shall be given by Internal Audit;
The report shall be timely;
Where possible, a summary of corrective action to be taken would be submitted along with the report; 48
H. It is the responsibility of Chief Executive / General Manager / Superintendent and operational heads of the departments / units / tea estates to give adequate consideration of, and take effective action on audit findings and recommendations. The respective Chief Executive / General Manager /Superintendent / the operational heads of the departments / units / tea estates are normally required to implement the accepted suggestions within 3 months (90 days) of the date of receipt of the final report. The time span should not be exceeded and all efforts/ steps shall be taken by the operational heads of the auditee departments / units / tea estates to maintain the target date for implementation. Should some special circumstances or matter beyond one‟s control arise, extension of time shall be sought in writing clearly indicating the reasons and a revised date of implementation are given.
Internal Audit will assess the implementation of accepted suggestions of the final report during its next visit to the department / unit / tea estate. In case the accepted suggestions are not implemented within the time span of 3 months or the revised date, as the case may be, the same shall be reported to the Chairman by General Manager (Internal Audit) / Chief Internal Auditor with copies to Director (Finance) and Financial Controller through periodical reports.
5.6 The remarks or observations if any of the Chairman / Director (Finance) / Financial Controller on the final audit report will be communicated to the concerned Chief Executive / General Manager / Superintendent and operational heads of the concerned departments / units / tea estates for information and necessary corrective action under intimation to the General Manager (Internal Audit) / Chief Internal Auditor.
6.1 The General Manager (Internal Audit) / Chief Internal Auditor is expected to maintain evidence of work done by him and his internal audit teams by means of well designed working sheets or notes containing, inter alia, the nature of work done, the extent of checking done, names of individuals who have carried out the work with their initials, details of various important points observed, important queries raised in the course of audit and the clarifications obtained.
The finance department is the heart of the company. This department is supposed to be arranging the funds that are required by the company. The Finance Department is responsible for managing all the finances of the organisation. The Finance team are responsible for dealing with all money coming into and going out of the organisation. In order to understand the purpose of the Finance function, let‟s look at the different tasks that are carried out by the Finances Department.
The ITI Ltd follows the April - March financial year. By the end of each year, the company is supposed to submit its accounts to the external auditor. They pay some taxes and duties. The auditing of the company is of two types. They are: a) Internal b) External
The internal auditing is done by the internal auditor of the internal auditing department of the company. The internal auditing is done once in a month. The internal auditor checks for the accuracy of the accountants. The entries in the daybooks and the ledgers are posted daily by the other accountants. By the end of every year, the trading and profit and loss account and the balance sheet is prepared to find the financial position of the company. By preparing the trading and profit and loss account and the balance sheet, the managing director will know whether the company is enjoying a profit or it is running in a loss.
The external auditing is done once in a year. This is done by an external auditor, who comes from the auditor‟s office. He checks for the accuracy of the accounts
ITI Ltd receives a credit period of 90days from their suppliers for the purchase that they make. They give a credit period of 30 to 60 days for their customers. 50
They generally do not give any cash discount, as the transactions are done on the credit basis. When they make cash transactions, they give cash discounts also.
The general monthly reports that are prepared are: a) Total receipts b) Total payments c) Outstanding list of debtor d) Outstanding list of creditors The above listed reports are prepared once in a month and submitted to the managing director for his reference. The managing director scrutinizes the above reports and passes any orders or corrections to be made. Later, the finance manager and the assistant finance manager execute his orders.
Taxes and duties:
The company pays two kinds of taxes. They are: a) Income tax b) Sales tax The income tax is paid only once in a year. But, the sales tax is paid ever month. The taxes are paid regularly. The income tax is paid in the month of March and the sales tax is paid on the 20th of every month. A period of one month is given as accredit period. The finance manager looks after all the activities. He brings to the notice of the managing director, if some payments are to be made for the purpose of any taxes or duties or any such expenses. The managing director passes the required orders. The finance manager and the assistant finance manager execute the orders off the managing director.
Accounting statements maintained by the company:
The following accounting statements are maintained by the accountants of the finance department: a) Journal b) Ledger c) Purchase book d) Sales book e) Bank reconciliation statement f) Cash book g) Trial balance h) Trading account i) j) Profit and loss account Balance sheet
k) Party wise receipts and payments account l) Outstanding debtors and creditors
m) Cash flow n) Fund flow o) Of take report The above listed are a few accounting statements that are maintained by the company.
Utilization of resources:
The company utilizes its resources by purchasing asset like machineries, computers, vehicles that are used for transportation, etc. apart from this they put also acquires investments in some will established companies.
The Role of Finance Department
1. Preparing and Presenting Final Accounts o o o o The Finance team are responsible at the end of each financial year, to record how well the organisation has performed financially. In order to show how well the organisation has performed the Trading, Profit and Loss Account and the Balance Sheet are prepared. The above documents will then be presented to Senior Management who will be informed of how much money the organisation has made or lost over the year. This helps management in making decisions for the future. For example, if they need to cut costs they may decide to make some staff redundant. Or, alternatively, if they have made large profits, they may decide to open up a new store so that they can grow.
2. Paying Bills on behalf of the Organisation/Departments o The Finance team are responsible for paying for all purchases made within the organisation. You have recently learnt that a Department will submit a REQUISITION form to the Purchases department for new resources. This information is then passed on to the Finance team who actually PAY for the goods ordered. o o o o When the supplier sends an INVOICE, the Finance team will check that it is correct. For example, check the quantity ordered; the price of each item etc. It is essential that all invoices received are paid promptly to the supplier. This will help establish the supplier relationship which could lead to discounts and trade credit being offered in the future. The most common method of payment the Finance team use is a CHEQUE. The Finance team will ensure that an accurate record of all cheques paid is kept to make sure that cash is being transferred appropriately.
Processing a Cheque: If the Finance team are paying the supplier using a cheque the supplier is known as the PAYEE. The amount to be paid is written in text in full as well as in figures in the box at the side. The person who signs the cheque will be an authorised employee of the Finance team. There will be a limited amount of employees who are allowed to sign cheques to make sure that nobody is misusing the organisation‟s cash. Each cheque has a STUB. This means that when a cheque has been written and removed from the chequebook, the stub is left. To keep an accurate record, the stub will display the amount of money paid, to whom and on which date.
A Cheque will be refused if the following occurs:
The cheque has not been signed. The signature is false. The cheque has been dated in advance of when it is received. The text showing the total amount is different from the numbers showing the total amount. The cheque appears to have been falsified e.g. the account number has been changed or the date has been changed. 3. Paying Employees’ Wages o o o o It is very important that the Finance Department works closely with the Human Resources Department in ensuring that all employees are paid the correct amount and on time. The Human Resources Department informs the Finance Department exactly how much each individual employee should receive at the end of each month/week. Once the Finance team have processed this information in their records, the wages are automatically paid into each individual‟s bank account. For smaller organisations, the Finance team may decide to make up „pay packets‟ by handing over cash at the end of each month/week. The functions carried out by the Territorial Administration Division are as indicated below
To fund Corporate Plans and Budgets. To formulate Financial and Accounting policies. To devise strategies for effective revenue generation, collection and disbursement. To advise Management on the most cost-effective methods of carrying out operations and hence ensure adequate returns on investments. To install internal checks and control in all aspects of financial management. To facilitate the provision of operation stock and stores and the maintenance of appropriate records pertaining there
Financial control is also called inventory control List of material called bills of material
The organizational study has helped me in understanding the management of an organization, various problems faced by them and several measures taken to solve those problems for the smooth running and develop a sound organizational environment. It has also given me a practical knowledge as to how theory is sensibly applied in practice The in-plant report was conducted to study about the function of ITI LIMITTED PALAKKAD. Even though customers were satisfied with the current level of services rendered by ITI LIMITTED PALAKKAD, improvement should be a continuous process and various export suggestion are implemented to make marketing easier. Though the percentage of unsatisfied customers is low the view and suggestion in this study may also be taken into account for further improvement of the products and services and its quality
INPLANT TRAINING REPORT
KANJIKKODE WEST (PO), PALAKKAD-678623, KERALA, INDIA
An in plant training report submitted in partial fulfillment for the award of degree in bachelor of commerce with information technology
DILEEPSANKAR.P Reg no: 102AJ0326 UNDER THE GUIDENCE OF Mrs. SAHAYA RANI. Assistant Professor Department of Commerce with Information Technology
STARS RISE HERE……..
AJK COLLEGE OF ARTS AND SCIENCE NAVAKKARAI (PO), COIMBATORE-105 TAMILNADU JUNE 2012
This is to certify that this in-plant training report entitled “ a study on the overall performance of a company” submitted to Ajk college of arts and science in partial fulfillment of the requirements for the award of the Degree of Bachelor of commerce with information technology is a bonafide work done by DILEEPSANKAR.P Reg. no: 102AJ0326 during the period of May 2011 to June 2012 in the Department of commerce with information technology, Ajk college of arts and science, Navakkarai (po) Coimbatore – 105 under my supervision and guidance.
Signature of HOD
Signature of Guide
I hereby declare that this in-plant training report entitled “a study on the overall performance of ITI LIMITTED PALAKKAD submitted to Ajk college of arts and science is a record of original work done by me under the supervision and guidance of Mrs.SAHAYA RANI Assistant Professor, Department of commerce with information technology Coimbatore – 105 and that this project work has not formed the basis for the award of any Degree/Diploma/Associateship/Fellowship or similar title to any candidate of any University.
Signature of the Candidate
Signature of the Guide Mrs.SAHAYA RANI Assistant Professor Department of Commerce with information technology Coimbatore – 105
In pursuit of this academic endeavor, I feel that I have been singularly fortunate, inspiration, guidance, direction, cooperation, love and care all came in my way in abundance and it seems almost an impossible task for me to acknowledge the same in adequate term. Yes, I shall be failing in my duty if I do not record my profound sense of indebtedness and heartfelt gratitude to, Dr. P.V BALASUBRAMANIAN, M.A, M Phil, PhD, principal of Ajk college of arts and science Coimbatore and the head of department Mr. SENTHIL KUMAR, M.com, M.Phil, PGDCA for giving me all guidance and motivation, Ajk college of arts and science Coimbatore- 641 105., for his constant encouragement in completing this project and making it successful. I express my sincere thanks to my guide, Mrs. SAHAYA RANI Assistant professor, Department of commerce with information and technology for his valuable suggestions and support. I would like to express my sincere gratitude to (add ma staff) Finally, yet importantly, I would like to express my heartfelt thanks to my beloved parents for their blessings, my friends & classmates for their help and wishes for the successful completion of this project.
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