CHAPTER – 1 INTRODUCTION
1
1.) INTRODUCTION: The Kerala State Electronics Development Corporation (KSEDC) popularly known as KELTRON CONTROLS, was established in 1973 as the first Electronics Development Corporation in India in the State Government Sector. Kerala State Electronics Development Corporation limited and ten subsidiary and associate companies turns out more than hundred different types of products. These products are marketed through a strong sales and distribution network spanning the entire country. Eight branches located at Ahmadabad, Bangalore, Calcutta, Chennai, Delhi, Hyderabad, Mumbai and Trivandrum ensures that the products are backed by dedicated support and service. KELTRON CONTROLS, today, is poised to provide an entire range of products, solutions and services to its consumers in the areas of Electronic Components, Consumer Electronics, Control and Instrumentation, Information technology, Cybernetics, Communications, Industrial Electronics, Strategic Electronics and Traffic Management Systems. KELTRON CONTROLS, offers expertise as a System House to design, engineer, configures, supply, install, commission, and maintains large projects and provides customized solutions. KELTRON CONTROLS, has been restructured by decentralizing its departments to meet the changing needs. Presently KELTRON CONTROLS, – multi-product, multi-unit organization with more than 3000 employees spread over the entire country is reorganized as 34 independent Strategic Business Units (SBUs) based on the product . 2
category and type of business it is engaged and each SBU is functioning as a self generating profit entire at the root level headed by the SBU head, KELTRON CONTROLS, a division of Kerala State Electronics Development Corporation Limited was set up in 1979 to introduce the state-of-the art technology in the field of control and instrumentation to the power and process industries in the country. KELTRON CONTROLS, commenced its operation with the signing of a technical collaboration agreement with Control Bailey, France. The range of products were subsequently diversified into various fields like Electronic Pressure and Differential Pressure Transmitters, Solid State Protections, interlock and sequence control system, Data Acquisition System, Indicators and Records and the latest distributed control system to provide comprehensive system solutions for thermal power plants and process industries. The rich experience and capabilities of KELTRON CONTROLS, in the fields of Analogue Control System, Data Acquisition and Distributed Digital Control system remain unmatched in the country.
1.1) OBJECTIVES OF THE STUDY:
PRIMARY OBJECTIVE: 1) To study the entire organization and to understand the organizational processes and dynamics.
SECONDARY OBJECTIVE: 3
1) To study the various departments and it’s functioning. 2)To understand the organizational structure.
1.2) METHODOLOGY OF THE STUDY: Both primary and secondary data was collected from the organization. Primary data was collected through interviews with employees at various levels. Secondary data was obtained from company manuals especially quality manuals, company web site and other magazines and newspapers. Direct observation was used to understand the production process. PRIMARY SOURCES OF DATA:
1)Direct personal interviews with the managers of the concerned departments, detailed interviews with department heads and other lower level workers in the company. SECONDARY SOURCES OD DATA: 1) Official records. 2) Organizational manuals. 3) Official website of the company.
1.3) LIMITATIONS OF THE STUDY:
4
The employees of the company were cooperative to me, but still they could not explain everything to me because of their tight schedule. 1) Lack of availability of confidential data. 2) Unavailability of Financial Data’s restricted me to analyze the financial position of the company.
1.4) SCOPE OF THE STUDY . 1) This study helps to make a comparison between the classroom knowledge with the real situation in the organization. And also it helps to interact with the organizational executives of the company. 2) The time span of this project was one month if more time was given more information could have been collected. 3)This study aims at generating the practical awareness about the management. It also helps to understand different management activities.
5
CHAPTER – 2 INDUSTRY PROFILE
6
2) INDUSTRY: “Faster, better and cheaper” is the slogan that drives the electronic industry. The consumers are buying goods at a faster rate than the past. The electronics industries now follow the slogan “innovate or perish”. Thus we can see a number of novel and modified products in the market. In this technology-driven environment, KELTRON CONTROLS, finds the assimilation, adoption and integration of technology in creating innovative solutions as the very basis of survival. A number of new markets are emerging as performance improves. The recent indigenous production is increasing day by day leading to an increase in demand. The gap here is met by imports. According to ISA or known as Instrumentation and Systems Automation Society formerly known as Instrument Society of America, the official definition of Instrumentation – is a collection of Instrument and their application for the purpose of Observation, Measurement and Control. An instrument is a device that measures or manipulates variables such as flow, temperature, level, or pressure. These Instruments can be as simple as valves and transmitters, and as complex as analyzers. Instruments often comprise of control systems of varied processes. The control of processes is one of the main branches of applied instrumentation. Control instrumentation includes devices
7
such as solenoids, valves, circuit breakers, and relays. These devices are able to change a field parameter, and provide remote or automated control capabilities. Despite having population over a billion people, India has a relatively small electronic market being ranked twenty sixth worldwide. KELTRON CONTROLS’s strength lies in the stable foundation and experience built over the years, its strong human capital, its nation-wide network and its ability to adapt itself to change. With over a 30 year long track record as a manufacturer of sophisticated electronic devices and systems, KELTRON CONTROLS, presents itself in the global market as a one-stopshop for manufacturing, system integration, and after-sales-support in India. Strategic Vision of KELTRON CONTROLS is to be a world-class, growthoriented electronics corporation specialized in providing quality, marketfocused products, services and cost-effective system solutions to a large client base. A quarter century later, KELTRON CONTROLS, after having contributed significantly to the state and substantially to the Industrial community of the nation and to the exchequer, set about transforming Trivandrum, the capital city of Kerala, into one of the major electronics hubs of the country. Today the city is home to techno-park, the internationally known technology park, a long cherished dream come true of the Founder Chairman & Managing Director – Sri. KPP Nambiar - where thousands of talented men and women participate in the development of a burgeoning information technology industry. Thus KELTRON CONTROLS, has in effect triggered a revolution that still keeps churning out its benefits to individuals and institutions in 8
different parts of the world, touching different walks of human life and continuing in its quest to Innovate Products & Processes and Services that would add further value to the livelihood areas of the country, supporting real time industrial growth. KELTRON CONTROLS, has an All India Sales Network in place with fullfledged Marketing Offices in Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Ahmadabad, Aroor and Trivandrum to provide the quickest possible service to customers. Since its inception in 1973, KELTRON CONTROLS,’s forte has always been high quality manufacturing. During the past 30 years, KELTRON CONTROLS, has churned out a whole range of electronic products, electro-mechanical and high precision modules and sub assemblies for different industry segments. In terms of production, the country is ranked twenty – ninth. Some of the other manufacturers in India are: 1)Meghalaya Industrial Development Corporation Limited. 2)Navabharth Enterprise, Hyderabad. 3)Rescon Manufacturing Private Limited, Pune. 4)Pieco Electronics and Electricals Limited, Mumbai. 5)Saab Electronics Devices, Sahidabad.
2.1) HISTORY OF ELECTRONICS INDUSTRY: Among the manufacturing industries, the electronics industry occupies a key position in modern science and technology. It plays vital role in the field of 9
Atomic Energy, Communication, Defense, Education, Entertainment and Space Technology. Until 1970’s the electronics industry was the most protected of all the Indian industries. At that point of time country’s electronics policy strongly favored self-reliance and technology and capital imports were strongly discouraged. This resulted in the electronics industry being highly under developed till the late 1980’s. The industry was considered very inefficient producing outdated and low quality models at a very high cost. Policy reforms were initiated in the early 1990’s with the liberalization of trade and industry sectors. With the change in the policy regimes after liberalization, the industry experienced restructuring.
2.2) GLOBAL SCENARIO: The worldwide electrical and electronics industry is experiencing phenomenal and remarkable changes these days. The worldwide electronics industry is distinguished by fast technological advances and has grown rapidly than most other industries over the past 30 years. Globally, during the early 2000s, endusers of passive electronic components like capacitors namely original equipment manufacturers were applying continuous pressure on the industry to lower prices. This had an adverse impact on profitability, as many capacitor manufacturers were forced to produce components at or below the cost of production. In addition, the industry was forced to contend with a generally weak economic climate, heightened competition from the likes of Asia, and downturns in 10
leading end markets like telecommunications equipment and computers. These negative conditions led to workforce reductions, consolidation, plant closures, and a reduction in overall capital spending and production capacity.
2.2) INDIAN SCENARIO: The electronic industry in India constitutes just 0.7% of the global electronic industry. Hence it is ,medicore by international comparison. However the demand in the Indian market is growing rapidly and investments are flowing in, to augment manufacturing capacity. India however remains a major importer of electronic materials, components and finished equipment amounting to over US $26 Billion in 2009. This is not a desirable situation and local manufacturing has to keep pace with growing local demand. The electronic industry in India constitutes just 0.7 % of the global electronic industry.
2.3) FACTORS EFFECTING THE GROWTH OF THE INDUSTRY: The key factors governing the growth of electrical and electronics industries are as follows:
11
1) Rising and continuous investments in research and development has led to increased productivity and higher-value added electrical and electronics products. 2) Increased foreign investments have resulted in the accelerated growth in terms of electronics production and exports. Foreign companies are now making huge investments and are installing extensive production capacities in developing countries. 3)
Extends
support
to
several
global
industries
namely
medical,
telecommunications, industrial and automotive sectors. 4) Rising incomes and living standards have resulted in the increase in demand of electronics especially consumer electronics products in the world. 5) This industry is highly fragmented which comprises of many small and medium size enterprises. 6) Rapid pace of innovation in electronics technology is resulting in a consistent demand for newer and faster products and applications.
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CHAPTER-3 COMPANY PROFILE
13
3.1) HISTORY OF COMPANY KELTRON CONTROLS,’s history is a saga innovation in electronics. From being a pioneer in 1973, to the role of a trend-setter today, KELTRON CONTROLS, has been the catalysis for the development of electronics enterprise, more than a quarter century ago, read “spearheading an electronics revolution in Kerala”. It was an experiment by Government of Kerala to transform the laid-back, picturesque Kerala State known for its spices, natural beauty, Kathakali and the Onam boat races, to arena for industrial and technological development. That was how KELTRON CONTROLS, was born. Within five years of its inception, KELTRON CONTROLS, had set up a production centre in every district of the State. More than 5,000 people were engaged directly or indirectly by KELTRON CONTROLS, for the manufacture of electronic goods. The model of a Stateowned electronics corporation was so successful that several other States in India followed suit; launching their own electronics corporations. The Control & Instrumentation division of KSEDC Ltd. and started its operation in 1979 with a technical collaboration with Controle Bailey, France. Operations of the Division are focused on System Design, Engineering, 14
Manufacturing, Field Erection & Communicationing and Project Management of Process Control and Instrumentation Systems. The division’s operations include manufacture of Panels and other C & I Systems and Instruments also. Over the years, the division has diversified into Information Technology also by starting the manufacture of Computers in 1999. Subsequently, KELTRON CONTROLS, started manufacturing mechanical products for the disabled people. Of late, the Division has diversified its operations into Defence field in close association with NPOL, Cochin as well as into shipping instrumentation in association with Cochin Shipyard Ltd. Also the division is a major supplier of technical manpower to ONGC for their rig operation & maintenance. As there is very good manufacturing infrastructure for Electronics, Electrical and Mechanical, the division offers Contract Manufacturing Services to clients from abroad and India. KELTRON CONTROLS, also provides technical manpower to major organization like ONGC and VSSC.
3.1.1) DEVELOPMENTS SINCE IT’S INCEPTION Since its inception in 1973, KELTRON CONTROLS,’S forte has always been high quality manufacturing. During the past 30 years, KELTRON CONTROLS, has churned out a whole range of electronic products, electromechanical and high precision modules and sub assemblies for different industry segments. Within five years of its inception, KELTRON CONTROLS, had set up a production centre in every district of the State. Equipped with computer-based facility for system design & engineering, and 15
software development tools for embedded systems, KELTRON CONTROLS, today is fully geared to offer integrated manufacturing solutions. Currently KELTRON CONTROLS, employs a work force of 2000 of which 400 are engineers who possess extensive hands-on experience in technology integration and adoption, high-Tech manufacturing operations and in managing turn-key projects. Man power at space electronics section has been specially trained at Indian space Research Organization (ISRO) in high reliability soldering, harnessing and QC. KELTRON CONTROLS, also provides technical man power to major organization like ONGC and VSSC and collaborators like Hitachi Japan. Country wide sales network - KELTRON CONTROLS, has an all India Sales network in place with full-fledged Marketing offices in Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad and Trivandrum to provide the quickest possible service to customer
3.2) ABOUT KELTRON: Kerala State Electronics Development Corporation Limited is a company incorporated under the Companies Act, 1956. The company is fully owned by Government of Kerala. KELTRON CONTROLS, Group comprises the holding company, Kerala State Electronics Development Corporation Limited and ten subsidiary and associate companies turning out more than hundred different types of products.
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These products are marketed through a strong sales and distribution network spanning the entire country, through the seven branch offices located at Ahmadabad, Bangalore, Calcutta, Chennai, Delhi, Hyderabad, and Mumbai, to ensure that the products are backed by dedicated support and service. Over the years KELTRON CONTROLS, has accomplished much more than what is set out to achieve; to industrialize a virgin territory and to provide employment opportunities to the teeming millions. It pioneered new concepts in industry and management, and created many products for the first time in the country. KELTRON CONTROLS, has not only changed the industrial profile of the State but has even transformed the lifestyles of its people. Trivandrum, the corporate head-quarters of KELTRON CONTROLS, once a placid town, is now a sophisticated city humming along with the highest in Quality of Life Index. More than offering employment opportunities to the people, KELTRON CONTROLS, has trained and Nurtured many high caliber managers and technical hands who have in turn enlarged the horizons of a developmental process that it had initiated years ago. Today, KELTRON CONTROLS, products remain as icons of technology brought to benefit the people. As diverse as its products and their uses are, they are unified by its pivotal strength as a solutions provider. It is this philosophy that has made KELTRON CONTROLS, a vital contributor to the changing needs of the world and the community to which it belongs to, 17
during the last quarter century .From within the four walls of your drawing room to the vast expanse of an international airport, from the deep oceans to the realms of outer space, there is a KELTRON CONTROLS, product in the form of an innovative solution. Continuing in its quest to bring the benefits of frontier technology to its customers, KELTRON CONTROLS has forged strategic alliances with world leaders in the trade. Its focus today is in adapting technology to fulfill the needs of its customers with a renewal mission to emerge as a provider of better solutions for the future. KELTRON CONTROLS, is a technology driven enterprise that manufacturers and
markets
electronic
components,
equipment
and
systems
for
communications, defense, industrial and home applications. Coupled with the high-caliber technical expertise available in house, KELTRON CONTROLS has repositioned itself as a total solutions provider in electronics. The current capabilities of the Company include system integration, project management and consultancy. Nearly 4000 employees working in different part of the country are focused on bringing the benefits of technology to the customers. In some cases, it involves designing entirely new products. In others, adapting available technology to evolve better solutions. What
distinguishes
a
customer-oriented
Company
like
KELTRON
CONTROLS, from others is its ability to put itself in the customer’s shoes. It is not just a matter of seeking a problem as a customer sees, but of charting a 18
course for farsighted solutions as well. Every day, technology spins out an increasing number of options for the customers to choose from. It is only intensive knowledge, hands on experience and technical expertise that can help make the right choice. KELTRON CONTROL’S, strength lies in its quarter century of experience, abundance of expertise, and a sound knowledge base, all equipped to provide the most appropriate solutions to customers. KELTRON CONTROLS strives for quality in whatever it does. The attention to detail which KELTRON CONTROLS, had inherited right from the beginning has helped it earn outstanding honors since its infancy in 1973. Quality and reliability of KELTRON CONTROLS, products have been endorsed over and over by the large customer base and ISO 9000.
KELTRON BRANCH OFFICES. MUMBAI
102, Poonam
Phone: 22 -
Chambers Dr.
24922109,
Annie Besant
4968775,
Road Worli,
24934094,
Mumbai - 400 018 24935917 Fax: 22 - 24968004
[email protected] nl.net.in CALCUTTA
20, Ballygunj,
Phone: 33 -
Circular Road
24765980,
Calcutta - 700 019 24757871 Fax: 91 - 33 - 24765980 19
[email protected] t .in DELHI
Travancore
Phone: 11 -
House, Kasturba
23388625,
Gandhi Marg
23381730,
Bharahtiya Vidya
23383689 Fax 91 -
Bhavan, New
471 - 3389313
Delhi - 110 001
[email protected] .net .in
BANGALORE
No 52 , St. Johns
Phone: 80 -
Road Bangalore -
25579382,
560 042
25564228, 25544289 Fax: 91 - 80 - 5579382 kelbang@giasbg0 1.vsnl.net .in
CHENNAI
Sudarshan
Phone: 044-
Buildings 86,
24341261,
Chamiers Road
24346330,
Chennai - 600 018 24342006 Fax 91 44 - 24342469, 20
[email protected] HYDERABAD
AHMEDABAD
1-1-300/3, Ashok
.net .in Phone: 40 -
Nagar Syndicate
27634537 Fax: 91
Bank Complex
- 40 - 27634537
Hyderabad - 500
Telex: 0425 - 6793
020 Bungalow No.18
Phone: 079-
SBI Officer's
26635688,
Society Narayan
26604728
Nagar STRATEGIC BUSINESS UNITS: 1) Control and Instrumentation 2) Pneumatic products 3) Information technology 4) Project for physically disabled. COMMON SERVICE GROUPS (CSGs): 1) Personnel 2) Finance 3) Materials & Planning 4) Quality Assurance
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VISION: KELTRON CONTROLS, management’s corporate vision as the company enters the 21st century is: 1) To emerge as a strong and reliant business enterprise with customer focus, profit orientation and professional outlook. 2) To fit the company as a Rs. 500 Crores company by 2012.
3) To built up KELTRON CONTROLS, as a model PSU in the sunrise technology sector of electronics & IT. 4) To function as the backbone of electronics industry in the state and continue to pay the role of nodal agency of government for accelerating the growth of development of this core industry in the state. MISSION: The mission of KELTRON CONTROLS, is be the Navaratna Corporation of the country. To achieve this mission, the organization has set a clearly defined strategy in motion encompassing its core strengths: experienced human resources, robust infrastructure for high quality manufacture, commitment to quality, and continuous research and development. 22
POLICY: To establish a set of standards and to provide uncompromised quality and, keeps itself in line with current technologies in the Electronics industry. OBJECTIVES: 1) To become the customer driven company, supplying quality products at competitive prices at the expected time and providing excellent customer support. 2) To achieve growth in operations commensurate with growth of electronics industry in the country. 3) To create an organizational culture this encourages members of the organization to pursue their full potential through continuous learning through HRD initiative. 4) To generate inertial resources for sustaining operations. 5) To improve the market shares in the area of business by updating product range and achieving cost reductions. 6) To regain the companies technological leadership in the chosen fields of electronics through appropriate tie ups with R&D organizations in the country, international companies etc. 23
COMPETITORS: The major competitors for the company are: For Control and Instrumentation group they have only two competitors. 1) L & T 2) INSTRUMENTATION LIMITED QUOTA (RAJASTHAN) For Pneumatic Products group they have only one competitor that is, INSGTRUMENTTION LIMITED, PALAKKAD. For Information Technology group they have so many competitors they are, 1) HP, 2) ACER, 3) INTEL, 4) COMPAQ etc. And for Project for Physically Disabled group they do not have any competitors. OWNERSHIP STATUS KELTRON CONTROLS, is one of the major public sector companies in Kerala. Its ownership is completely held by the State Government. KELTRON 24
CONTROLS, Aroor (KCA) was started as its Control and Instrumentation division. But during the late 90s because of the globalization of Indian market and the change of energy sector reforms the control and instrumentation business in India became dull. In order to utilize its idle capital and infrastructure, KELTRON CONTROLS, AROOR was restructured into self profit generating strategic business units. The activities of SBUs are supported by 4 Common Service Groups (CSGs) under the division head of the Strategic Business Units (SBCs) and independently looked after by SBU heads. BRINGING WORLD CLASS TECHNOLOGY TO INDIA KELTRON CONTROLS, Control has entered into technical collaboration with the world leaders in the specific fields. 1) Control Bailey, France 2)CGEE Alsthom, France 3)Brown Bovary Kent, UK 4)Hitachi, Japan AWARDS/RECOGNITIONS 1) National productivity Award
1988-89 for large scale electronic
components from National Productivity Council, New Delhi.
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2) ELCINA Award 1993 for excellence in Research and Development for work done in the field of forming technology. 3) Department of Scientific and Industrial Research and Ministry of Science and Technology, Government of India approval for in-house Research and Development COMPLETED PROJECTS: 1) CCTV System with more than 50 CCD Cameras and associated control equipment at Indian Parliament House, New Delhi. 2) Store and Forward Message Switching System (SFMSS) for Indian Telecom Network at major telegraph exchanges in Southern India.
3) Message Switching System for The Indian Navy. 4) On-line issue of Voter Identity Cards for the entire electorate of over 2 0 million voters in the state of Kerala - with immediate issue of cards at their respective booth - using state of the art technology, being done for the first time in the country. 6) Micro processor based Card Attendance Systems in major industrial establishments like TELCO, and also various research institutions. 7) Major Defence Electronics Projects for the Indian Navy 26
TO ENHANCE COMPETIVENESS KELTRON CONTROLS, HAS DRAWN ROAD MAP WHICH INCLUDES: 1) To generate resources for sustaining operations 2) To improve the market share. 4) Establishing Good Manufacturing Practices (GMP) in all its production centers. 5) Providing an environment for continuous growth and excellence in quality by
progressively
upgrading
infrastructure
and
human
resources
development on a par with global development indices. 6) Consolidating efforts and resources in the development of the corporation’s focus areas such as power electronics, strategic electronics (for defense and space applications), security and surveillance electronics, control instrumentation and integrated traffic management system. 7) Establishing links with high-profile technology institutions such as DRDO,VSSC,NPOL to keep pace with technology development and adaptation 8) Giving a thrust to frontier areas of knowledge management 27
RESOURCE MANAGEMENT KELTRON CONTROLS, determines and provides the resources needed to implement and maintain the quality management system and continually improve its effectiveness and to enhance customer the satisfaction by meeting customer requirements. KELTRON CONTROLS, provides and maintains the infrastructure needed to achieve conformity to product requirements. Infrastructure includes, as applicable mainly, 1) Buildings, workspace and associated utilities 2) Process equipment (both hardware and software), and 3) Supportive services (such as transport, communication or information systems) BOARDS OF DIRECTORS Shri T. Balakrishanan
Chairman Principal Secretary Industries Department, Govt. of Kerala
Capt. (Rtd) Om Prakash Dua
Managing
Director
KELTRON
CONTROLS, House, TVM Shri Jyothilal IAS
Special Secretary to Govt. IT Department
Shri Ashwini Kumar Rai IAS
Director Secretary 28
Finance Expenditure Govt. of Kerala Shri TO Sooraj IAS
Director of Industries of Commerce
Dr. K.R. Srivathsan
Director, Indian Institute of IT & Management
Shri M. Narayanan
Director, KSEDC Ltd.
Shri Rajan T. Jospeh
Executive Director Development of Advance Computing
Shri S. Roopakala Jagath
Deputy Secretary Industries Department Govt of Kerala
T. R. Chidambaram
Deputy Director AVN Vikram Sarabhai Space Centre
3.3) PRODUCT PROFILE KELTRON CONTROLS, is the only C & I package in their manufacturing range. This ensures total control over the quality of the control and instrumentation systems in addition to providing life long after sales support to the customers. The product range includes: 9020 Analogue Control System: It is built around functionally independent modules and can be engineered to realize any control and monitoring functions. It employs hybrid technology associating linear analogue circuits with digital circuits.
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Data Acquisition System: Offer centralized configuration with HIDIC 80 minicomputer or the distributed configuration with the 32-bit microcomputer V90/25. Field input scanning and alarming, Data logging, Performance calculation, Operator guidance, Man-machine communication, Historical storage and retrieval as well as self-diagnostics. Programmable Logic Controller: Highly versatile Microprocessor based and designed to perform logic control functions for interlock protections, sequential and programmable control for process industries and plants. Open Loop Control of Systems: Employed in Process/Power Plant for the safe start-up/Shutdown and smooth operation of the plant and auxiliaries, it ensures high degree of protection for the operation of main equipments. Annunciation System Employed to continuously monitor plant alarms. It alerts the control room operator with audio and visual devices. Sequential Events Recorder: A microprocessor based system for monitoring, alarming and logging of the status of various control and safety related devices. Gives a sequential event recorded of process disturbance. It resolves an event within a resolution of 1m.sec. Distributed Digital Control System: Distributed Digital Control System is mainly used in thermal industries.
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Hiacs-3000 DDC System: Hitachi’s integrated control system for Power Plants provides complete man-machine communication and complex control functions including logic control. Configurable in a distributed hierarchical structure through its modular hardware and software architecture, if offers high degree of noise immunity with fiber optic high way or twisted shielded cables depending on application. P-4000 DDC System : For Process Industries, it provides functional & geographical separation of independent units, widening the horizons, processing power and system configuration for the control of industrial process. The P-4000 is provided with plant control and display system, which offers geographical and functional distribution of small to large systems having up to 4000 complex plant items without sacrificing the response to normal and abnormal plant changes. K-90 Integrated Control System: Built around powerful LSI 11/73 with intelligent Operator Console can only be configured from standard packages to meet the particular control, continuous control, SCADA etc. Tank Level Gauging System: Servo-powered, most advanced microprocessor based tank level gauging system ensures accurate level measurement. Gas and Water Quality Analyzers: Complete range for on-line measurement and control of pH, conductivity, dissolved oxygen, silica, flue gas oxygen, etc.
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Electronic Transmitters: High performance micro displacement inductance type electronic transmitters –Deltapi KELTRON CONTROLS, series in collaboration with M/s. Kent Tieghi, Italy. Control Drives: Double acting pneumatic Power Cylinders designed to operate accurately in outdoors, corrosive or dusty atmosphere and meets all control requirements. Control Panels and Cabinets: Control desks and panels manufactured as per customers requirement, System cabinet has been designed to house all 9020 modules and power supply. Others: 1) Panel Instruments: FEIC series strip chart recorders including controllers and recorders. 2) Pneumatic Actuators 3) E P converters 4)Water and environmental monitoring systems 5)Nucleonic level gauges 6)Personal computers and computer system 7) Mobility assistance devices like tricycles, wheelchairs PRODUCT RANGE
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The centre is presently manufacturing wheel chairs, Tricycles, Walkers. Auxiliary crutches, Elbow crutches, Tripods, Quad I Pods and prosthetic system for amputee based on the design know how from renowned and prestigious institutions like DRDO. The facilities available in the centre cater to the needs for manufactures of all the items for the rehabilitation of the physically handicapped. The centre has earmarked a shop floor area of 5000 sq. feet for setting up the rehabilitation centre
3.4) GROWTH PROFILE KELTRON CONTROLS, has an arrangement with C-DAC, a research and development organization under the Government of India, which is located in the KELTRON CONTROLS, campus, for technology development and adaptation. An in-house research and department facility along with a fullfledged knowledge Centre is in the pipeline and will be implemented shortly. Strong Infrastructure and Manufacturing Experience Since its inception in 1973, KELTRON CONTROLS,’S forte has always been high quality manufacturing. During the past 30 years, KELTRON CONTROLS, has churned out a whole range of electronic products, electro-mechanical and high precision modules and sub assemblies for different industry segments. Over the years, KELTRON CONTROLS, has built up a strong infrastructure spread over 7, 00,000 sq. ft. of built-up area. Equipped with computer-based facility for system design & engineering, and software development tools for
33
embedded systems, KELTRON CONTROLS, today is fully geared to offer integrated manufacturing solutions.
3.4.1) FUTURE EXPANSIONS KELTRON CONTROLS, Aroor is the Control & Instrumentation division of KSEDC Ltd, and started its operation in 1979 with a technical collaboration with Control Bailey, France. This division is now mainly focusing on expanding in the field of Defence Electronics. The company has diversified its operations into Defence field in close association with NPOL (Naval Physical and Oceanographic Laboratory), Cochin, as well as into shipping instrumentation in association with Cochin Shipyard Ltd. The company also has strategic alliance with BEL (Bharat Electricals Ltd.) for carrying out defense projects. NAGAN and SONAR ARRAY are the two main defense electronics projects the company has undertaken in alliance with BEL. Both these projects are having great exposure in the field of defense. KELTRON CONTROLS, is currently associating in the Process Plant Automation project using PLC (Quantum PLC of Schneider Electric) in BABA Atomic Research Center, Kalpakam.
34
KELTRON CONTROLS, is also paying more attention to its IT group. Customers in the power and defense sector have retained KELTRON CONTROLS, as the preferred partner in implementing major projects. The company has orders worth Rs.20 crore from the Indian Navy for Processor Based Ground Mines, Electro-Magnetic Log, Underwater Telephone, XBT Probe, Retransmission Unit and Echo Sounder. The State PSU has been entrusted with the mandate for issuance of National Identity Card in Goa. The Chief Election Commission continues to use KELTRON CONTROLS,’s ID Card Division to implement its on-line electoral photo ID card systems. KELTRON CONTROLS, has also taken up the voter’s ID card projects.
35
ORGANISATION STRUCTURE, (FIG 3.1)
Keltron Controls Complex Aroor 100 80 60
Keltron Controls
East West Keltron Tool Room North Research & Training Centre
40 20 0 1st Qtr 2ndQtr 3rdQtr 4thQtr
Business Support Groups
Personnel
Personnel Welfare
Finance
Plant Maintenance
Quality Assurance
Store
Purchase
Materials Planning
Planning 36
C and I group
PNG Group
PPD
ITG
3.5) STRATEGIC BUSINESS UNITS There are several; effective departments in the KELTRON CONTROLS, Aroor. The company is functioning as 4 independent strategic business units (SBU) and each (SBU) is self generating profit centre. The departments like personnel, finance, materials and planning and quality assurance are supported by different business groups like Control and Instrumentation Group (CIG), Pneumatics Group, Information Technology Group, Project for Physically Disabled (PPD). Business groups are independently functioning and these business groups have direct connection with each department. Materials and planning handles purchasing, storing and planning. The finance management of these departments is handled by the finance department. These departments supply the materials for manufacturing and after the product manufacturing; the products are passed to the quality assurance department for checking the quality of the finished products. The personnel department is sustained for the welfare of the personnel in each department and the recruitment of these departments and other common functions of human resource area. 37
3.5.1) CONTROL AND INSTRUMENTATION GROUP (C and I) GROUP. Control and Instrumentation business units focus on turnkey Instrumentation and Automation projects including Environmental Monitoring System. This SBU has high level of expertise and acceptable customer base mainly in power generation sector. The systems and equipments supplied by the quality of equipments and capability of the division in the instrumentation and related activities. The engineering experience and the software expertise acquired by the core competence and strength of the division are in the field of process control. With the opening up of Indian markets to private players and the Multi National Companies (MNC) owing to liberalization and globalization, the monopoly enjoyed by CIG was shattered and CIG no longer enjoys the wide customer range as before. Now the CIG work area includes servicing, implementation and operation. CIG has got Rs.10 cores orders in hand. MAJOR PRODUCTS UNDER EXECUTION: 1) Control system Projects for BARC, Kalpakam. 2) Environmental Monitoring System for KMML Chavara. 3) Electrical and Instrumentation works at Cochin Shipyard. 4) Maintenance Contract for ONGC, Bombay.
38
CIG HAS GOT THREE DEPARTMENTS: 1) MARKETING 2) ENGINEERING 3) ERECTION AND COMMISIONING MARKETING On invitation of quotation/bids by customers, the marketing department of CIG presents techno commercial bid. Techno commercial bid includes the technical dimensions, the various product features, project merits, designs etc. Commercial bids include details such as conditions of supply, execution, delivery, payment, dispatch, insurance, transportation, tax, excise duty, warrantee etc. After screening techno commercial bids and on approval of the same by the customer, CIG submits price bid. Price bids contain details of pricing lump sum pricing or price break up. Sometimes both the techno commercial bit is submitted together and screening is based on two. On awarding the tender from the consumer CIG System and engineering group working on product specification with the consumer involvement SYSTEM DESIGN AND ENGINEERING The system engineering department carries out the engineering activities, system design and provides necessary support to production and marketing 39
department as and when required. Presently the activities of these groups are centered on Digital Distributed Control Systems. The Engineering Group is also plays a key role in integration and testing. The Engineering group is manned with experienced engineers drawn from the various sectors of the industry such as power, steel, petrochemicals etc. having knowledge and experience about the process. They are capable of undertaking feasibility study, system design and project implementation of total turn-key control and instrumentation packages for any type of industry. The Engineering group activity will include the following. • Preparation of basic open loop schemes and sequential control schemes for binary drives. • Preparation of closed loop scheme for modeling drives. • Preparation of input/output list of control systems. • Selection I/O modules for PLC/DCS depending on I/O count and controller loading, preparation of bills of materials for the system.
• Preparation of wiring diagram and sizing of cabinets exchange between PLC & MMI
40
• Implementation of open loop and closed loop schemes in controller logic format using relevant standard functional blocks and ladder diagrams available with the system chosen. • Calculation and setting of the various parameters of the functional blocks in line with the process requirement. • Program loading and functional checking of the logics in controller. • Simulation and testing of the logics using test set up. • System Integration. • Final commissioning and fine-tuning of the system. • Integration of the control systems with various sub-system • Preparation of final documents like drawings, specifications and writeup for the project. • Preparation and development of layout drawings for control panels/desk covering various panel mounted instruments. • Grouping of various inputs-output signals in marshalling cabinets.
41
• After customer approval of the product specification and the arrival of necessary components, fully fledged production starts. Quality checks are done at the plant as well as at the site. ERECTION & COMMISSIONING The erection and commissioning group handles the following functions relating to a turnkey control and instrumentation contract. • Review of bid documents and preparing engineering philosophy and pricing to assist Marketing Department at the time of bidding. • Co-ordination
with
project
management
group,
customer
and
consultants, regarding the planning of installation and commissioning activities. • Preparation of installation documents and drawings required for the project. • Establishing site offices at project sites. • Providing maintenance support. • Erection, Pre-commissioning tests, commissioning trial run operation at site.
42
• The E & C group is equipped with the latest engineering tools and facilities. The E & C group also provides man power support to other agencies within the country and abroad whenever such services are called for. Now they are providing man power supply to ONGC, Bombay. This group undertakes annual maintenance contracts for various clients all over India and abroad.
3.5.2) PNEUMATIC GROUP (PNG) Pneumatic group is focusing on production and sales of highly demanded Pneumatic Actuators, which are extensively used in Power plants. Pneumatic actuators manufactured by KELTRON CONTROLS, are in high demand among various customers in India and abroad. Pneumatic actuators accurately operate and position regulating devices such as dampers, fan, and inlet vanes, Rheostats, butterfly valves etc. The actuators are being manufactured based on proven technology in technological collaboration with M/S Control Bailey, France. The product has been fully indigenous and is highly reliable ensuring durable performance. PNG have large customer base and 50% market share, the major customers for pneumatic group are BHEL, NTPC, THERMAX Ltd., IGT, and State Electricity Boards etc. 43
Pneumatic Power Cylinders manufactured by KELTRON CONTROLS, have been installed around 25,000 locations all over India at various Thermal Power Plants, Refineries, Petrochemicals, Steel Plants, and Paper Plants etc.
FUNCTIONAL AREAS UNDER PNEUMATIC GROUP ARE DIVIDED AS : • Marketing • Application Engineering • Pneumatic Shop PROCESS: Marketing Manager of the Pneumatic group on receiving the enquiry from the prospective customer transfers the same to the Application Engineering Department. Assistant Manager in application engineering is responsible for the preparation of data sheets according to the product specification of prospective customer. Marketing Manager does the pricing and after further negotiation, approval and agreement by the customer, the order registered is channeled to the Application Engineer where the drawings are done. Production intent is prepared with 44
project specification; customer details, project duration, estimated completion period and copy of production intent are given to planning, production and QA. The Planning department co-ordinates various requirements during the course of production as well as production at the pneumatic shops. Production intends notifies to pneumatic shop department that a project is under way. On receiving the work reports and necessary materials from the stores project is started. Weekly reports are given to planning. Once the project is completed finished goods intent is transferred to QA, where the final quality checking is done. On their approval finished goods are dispatched. PRODUCT: PNEUMATIC ACTUATER TRUNION MOUNTED ACTUATER Size 6”bore*12”stroke STAND MOUNTED ACTUATER Size 8”bore*16”stroke PRICE: TRUNION MOUNTED ACTUATER: starts from RS 100000/STAND MOUNTED ACTUATER: starts from RS 15000/PROMOTION:
45
Actually it is a public sector so they are not doing any advertisement As per the order they are producing They are like a monopoly in this area PLACE: Process industries are mainly using these products. Mainly these are applying to the THERMAL POWER STATION process control MAIN VENDOURS: BHEL
3.5.3) PROJECT FOR PHYSICALLY DISABLED As part of social commitment and diversification plans. KELTRON CONTROLS, have set up a centre for rehabilitation of the physically challenged at the factory with the support of Kerala State Handicapped Persons Welfare Corporation (KSHPWC). The products manufactured by the centre cater to the needs of the physically handicapped. The products manufactured by the centre cater to the needs of the physically handicapped. The devices manufactured at the centre are based on the proven design from Defense Research and Development Organization (DRDO) and stringent specification of BIS. PROJECT IPLEMENTATION
46
The project for physically handicapped is monitored and implemented by KELTRON CONTROLS, together with its four subsidiary companies at Trivandrum, Kuttipuram, Calicut, Alappuzha, Kottayam. KELTRON CONTROLS, at Aroor manufactures the desired equipments as well as is responsible for implementation of rehabilitation package for four districts – Ernakulum, Thrissur, Alappuzha, Kottayam.
THE PROJECTS ARE IMPLEMENTED ON A THREE TIER BASIS At the first stage the implementing authority i.e., Gramasabha or the concerned local bodies including municipalities, corporations, Ministry of Welfare etc. find out the patients in their area from their database or through other agencies and out the actual requirement of the of the disabled. At the second stage a Detection camp is conducted at the respective village or taluk. The team from KELTRON CONTROLS, for the camp include member from PPD as well as rehabilitation experts, Orthotic and prosthetic Engineers and orthotic technicians. This group accesses the disabilities of the screened patients and suggests the supporting devices as per the order are done at KELTRON CONTROLS, The third stage is the distribution of the supporting devices at the campsite from where the orders have been taken. Distribution of products to the patients 47
to be arranged by the implementing authority with the support of KELTRON CONTROLS,’s technical experts. AFTER SALES SERVICE The centre extended the after sale service till the end of the warrantee period Gait training will be imparted to the patients, which trained them to use the assistance devices properly. Regular follow up and after sales service are generally done on a case-to-case basis depending upon the need of each individual. But all of them will be definitely called if second camp is conducted at the same centre since they may require some minor corrections in the supplied aids. This is more so in the case of children where their aids has to be modified once they up or show predictable improvements
3.5.4) INFORMATION TECHNOLOGY GROUP Information Technology Group (ITG) at KELTRON CONTROLS, is involved in Software designing, PC Assembly, Servicing, Maintenance and Wiring. ISO 9001-2000 certification received in November 2002 for assembly and supply of personal computers under KELTRON CONTROLS, brand name. Software designing: ITG group of KELTRON CONTROLS, is also developing software for customers as per their requirement. The ITG of 48
KELTRON CONTROLS, has developed software called Sahakari for the computerized banking operations in cooperative banks. It is an Oracle based program. Functional arrears of ITG involves: Order processing group and Assembly shop. ITG is treated as separate unit; it has its own planning, marketing, separate book keeping etc. as the ISO certifications demands. Order Processing Group: Main marketing for the KELTRON CONTROLS, PCs is done at the corporate office at Trivandrum. Main customers for KELTRON CONTROLS, PCs are Government Organizations and this necessitates that the marketing function is concentrated at the Head quarters of Government Organizations. The channeling of marketing group of Trivandrum and production wing at KELTRON CONTROLS, is the main function of order processing group. The marketing department of KELTRON CONTROLS, HOUSE at Trivandrum gets the order from the Government Organizations, the order is then passed to ITG at different branches to execute the order. The order – processing group of KELTRON CONTROLS, after getting the order starts the manufacturing as per the customer specification. CERTIFICATION BODIES: RINA: (REGISTRO ITALIANO NAVALE INDIA PVT. LTD.) IQNET:The association of the world’s first class certification bodies, is the largest provider of management System and Certification in the World.
49
Management System Certification received from IQNET and its partner CISQ/RINA. KELTRON CONTROLS, PC offers striking performance at amazing price for Professional, home and office use
3.6)ORGANISATION DEPARTMENTS: KELTRON CONTROLS, has different departments like every other business organization. All these departments make this company keep moving on. The major departments in KELTRON CONTROLS, and Aroor are: 1) Marketing Department 3) Finance Department 4) Purchase Department 5) Stores Department 6) Human Resource Department
50
7) Quality Assurance Department • Assembly Shop Department
Various Departments at KELTRON CONTROLS, FIG (3.2)
Assembly Shop Department
51
Purchase Department
Stores Department
KELTRON CONTROLS , AROOR
Finance Department
Human Resource Department
Marketing Department
Quality assurance department
3.6.1) MARKETING DEPARTMENT, FIG (3.3)
52
General Manager
Deputy General Manager (CIG)
Marketing (A M)
Design and Engineering (AM)
Erection and Commissioning (AM)
Marketing officers
Senior & Junior Engineers
Senior & Junior Engineers
Workers
MARKETING MIX
53
4 P’S OF MARKETING MIX As Marketing Department n of every other organization here also they focus on the Marketing mix i.e.; 4P’s which are: • Product • Price • Place • Promotion • Product The products of KELTRON CONTROLS, includes industrial oriented product which is a component of electronic goods like TV, Refrigerator, and Computers etc. Price The price of the products are fixed in such a way that is not too high, that customers cannot afford it nor too low that they cannot incur the cost of production. Comparatively the price of capacitors of KELTRON CONTROLS, high but even then they are able to withstand in the market 54
because of the good quality. Price is fixed on the basis of the cost, demand and competition. Place KELTRON CONTROLS, carries out their sales through Authorized Dealers, Direct Sales All over India KELTRON CONTROLS, have dealers network. It has branches in cities namely; Ahmadabad, Bangalore, Calcutta, Delhi, Chennai, Hyderabad, Trivandrum. The company sells the product to authorized dealers who sell it to the retailers which are sold by them to ultimate customers. Dealers are given discounts and the company offers additional discounts in case of quick payment and to regular customers. Company fixes target sales for the dealers and if they succeed in meeting the fixed target they are offered commission at the end of the year. Some of their customers are given discounts on the basis of the turnover which is termed as Turnover discount. KELTRON CONTROLS, s also engaged in direct sales to the customers in case it’s a bulk order. Promotion The product of KELTRON CONTROLS, is a component which is an industrial product and therefore they need not use any form of advertisement.
55
But they do take part in exhibitions and conduct seminars to promote their product. Thus they do not require huge investment for sales promotion.
56
3.6.2) MATERIALS AND PLANNING DEPARTMENT, FIG (3.4)
General Manager
Deputy General Manager
Purchase Manager
Purchase officer
Assistant
Purchase officer
Assistant
Assistant
Assistant
THE MATERIALS DEPARTMENT IN KELTRON IS DIVIDED INTO 57 Assistant
1)PLANNING. 2)PURCAHSE. 3)STORES. Planning The materials required for production at KELTRON CONTROLS, includes regular items as well as special items. Minimum stock is constantly monitored by computerized system and on Assistant
reaching the recorder level; materials are recorded based on EOQ. Specific materials are produced on receiving production intent from the concerned department. After getting the order from the customer the marketing department of each SBU gives production intent to the planning department. The production intent contains the details such as customer details, their specifications, items, delivery date, quantity etc. On receiving the production intent, the purchase intents are prepared as the planning quotations are invited from suppliers. Purchase intent contains material code no, Material specialty, quantity required and delivery details, suggested vendor, quantity in stock, quantity in order etc. Procurement functions start at least 3 months prior to the desired delivery date or requirement at shop floor.
58
Lowest quoted quotations together with drawings are accepted. Once the goods reach the stores, they does an initial inspection and issue Goods Receipt Inspection Report (GRIR). All the items received in the store are entered in GRIR. The received items along with the GRIR are given to QA (Quality Assurance). Once approved by the QA materials are stored at the holding store. Copy of GRIR is given to Planning, Purchase, Finance, and QA. If the materials is given a non confirmation report 9NCR) by QA, but production floor demand it urgently, or the defect pointed out is not that grave, planning might issue a deviation concession note and get it approved by QA. On the arrival of the material in the holding store, store requisition will be raised by planning department for withdrawal of material from store of production shops are contains such details such as work order no, to which shop, item no, required quantity, description of the item etc. The work order is raised by planning for the production of the component as per the production intent from the marketing dept of each SBU. Work order contains the details such as work order no, product, customer, scheduled date for customer inspection, target date for completion. Materials along with work order and production intent is given to production shop for execution of the work.
59
3.6.3) PURCHASE DEPARTMENT, FIG (3.5)
General Manager
Deputy General Manager
Purchase Manager
Purchase officer
Assistant
Purchase officer
Assistant
Assistant
60
Assistant
Purchase department deal with purchase activities. Materials are procured on request arising from different departments. The materials are purchased right quantity, right time and right price and from right suppliers. The main functions of purchase department are 1) Purchase of raw materials as per the requirement 2) Purchase of consumable 3) Planning of purchase activity. 4) Invitation of tenders. 5) Purchase of all equipments required by the company based on the request from the various departments. Evaluation of tenders. Steps involved purchase procedure 1) After getting the production intent from the marketing department of the SBU, the Planning raises the purchase intent to the purchase. 2) The purchase intent contains details such as material code no, material specialty, quantity, required and delivery details suggested vendor, Quantity in stock, quantity in order etc. 3) Enquiry is sent to approve vendors after cross checking with the inventory section. If the approved vendors are not available, tenders invited through publishing tender notice in newspapers. 61
4) Quotations are received and opened by a committee, which consists of a member from purchase department, one from finance and one from audit. 5) Quotations undergo evaluation process on the basis of approved quality delivery commitment, price, terms and conditions of transportations etc. Quotations are tabulated and comparative statement is prepared.
62
3.6.4) STORES DEPARTMENT , FIG (3.6)
Deputy General Manager
Store officer
Store Assistant
Expeditors
Helpers
63
In the store department about 6000 items are stored which include raw materials, chemicals, equipments, electrical goods, instrumentation-on, consumable Items, spares etc, which are coded and entered into a database. The various items are given a 10-digit code for easy handling. On receiving the purchase order from the purchase department stores are intimated that materials are on the way to be stored. On carriage inward of materials, the recipient of materials is acknowledged and the quantity and materials are verified against purchase order. On completion of this initial inspection, GRIR is issued. On receipt of the GRIR, QA does the inspection and on approval of QA; materials are stored at holding store. GRIR is also passed to purchase, finance, and planning. GRIR contains the details such as the item code no, description, customer quantity received, qty accepted, qty rejected etc. Daily receipt of materials entered into computerized stock ledger. The LAN connection between planning and stores also helps informing the arrival of critical items. All the items reaching the holding store are credited to stores through credit note. Bin card is maintained for each item, which contains all the details regarding that particular item. The Issue of materials starts with the store requisition from planning. If any complaints arise of the materials issued at the production floor, stores issue a non confirmed store requisition (NSR) to the suppliers, Stores on the basis of commercial agreement with suppliers either return it to the suppliers, to be
64
replaced or received or treat it as damage or scrap and processed for fresh delivery. On completion of the production issues finished goods intimation report, and the balanced items after production are returned to stores through stores return note. After satisfactory quality checking by QA, the finished goods reach the outward store. Finished goods are credited stores through finished goods credit note
3.6.5) QUALITY ASSURANCE DEPARTMENT High priority is assigned to Quality Assurance (QA) at KELTRON CONTROLS, The QA department is equipped with latest electronic and mechanical test equipments to perform comprehensive testing of components subassemblies and systems. Every component is subsequent steps of assembly are similarly supervised for proper quality by QA department. A multi-prolonged action plan ensures consistently high quality standards, by adoption of elaborate quality assurance system manuals covering all aspects of operation. Establishment of a feedback system from all areas including engineering, erection and commissioning departments.
65
Joint discussions and quality studies on special problems encountered. Stage-wise inspection and surveillance checks at vendor’s works for all bought-out components and equipments. Regular training programs for Quality Assurance Personnel. The QA Department co-ordinates the activities of the various functional groups in the organization such as to have production at the most economic level without staking product quality and customer satisfaction. The activities include: 1) Document Control 2) Quality of Conformance during manufacturing by the inward inspection of incoming material. 3) In-process quality control during manufacturing. 4) Functional testing including total integrated testing of C & I Systems. 5) Control and Material handling 6) Storage & Shipping: i) Control of non-conforming items ii) Coordinating Customer Inspection iii) Maintenance of quality Assurance records and their analysis iv) Quality Audit v) Control of instruments, Equipments and gauges vi) Vendor Assessment and Approval. 66
In order to achieve the ultimate goal of implementing a Total Quality Management concept in the organization, department co-ordinates the activities for ISO-9001 certification. QUALITY POLICY OF KELTRON CONTROLS,
“We are committed to enhance customer satisfaction by continual improvement of our performance to deliver cost effective, reliable products & service.”
QUALITY ASSURANCE PROCESS Quality Assurance (QA) Process starts right when a quotation for components is accepted and the information is intimated by planning to QA. QA checks the quality of the samples provided by the suppliers. QA finally issues the accept/reject order of quotation. Once the supplier sends the goods to the stores; Stores on receipt of goods issue Goods Receipt Inspection Report (GRIR) to QA. QA checks the quality of components send and issue the accept/reject proposal. The inspection report is send to planning as well as concerned production floor. If QA rejects the component, sent a Non Conformation Report, and is send back through the purchase A/C. supplier does necessary servicing of the parts or the replacement of goods, But if the components has to accepted in spite of rejection offered by QA, because of urgency in production or the concerned 67
part will not harm the assembly or the extra ordinary delay involved in fresh delivery, the planning issues deviaticoncession note and gets the approval of QA, Production, GM, and use the component in production.
68
3.6.5) HUMAN RESOURSE DEPARTMENT, FIG (3.7)
General Manager
Assistant Personnel Manager
Deputy Personnel officer
Junior superintended
Senior Assistant
Trainees
69
Personal Department manages all the employee related activities Functional areas of personnel manager in KELTRON CONTROLS, Aroor includes: PERSONNEL AND ADMININSTRATION ROE: • Recruitment • Selection • Performance Appraisal • Salary and wage administration • Maintenance of records. WELFARE ROLE: • Canteen • Transport • ESI • Gratuity • Uniform Supply INDUSTRIAL RELATIONS ROLE: • Communications between management & trade unions • Grievance handling • Settlement of disputes 70
• Handling disciplinary actions MAN POWER PLANNING The personnel officer pr manager with the help of concerned department managers and support of the top management does manpower planning. RECRUITMENT The function of recruitment procedure is to get qualified personnel for the company. Manpower requirement are identified and the personnel department selects the required persons. Requirement sources for KELTRON CONTROLS, are:• Internal sources • RI centre (Relate Instruction centre) • SDC training campus at Kalamassery • Government ITIs • Kerala Public Service Commission • Engineering college Campus placements • Direct recruitment by advertising in newspapers SELECTION
71
After scrutinizing and screening of the applicants, the screened candidates are called for interview, the panel consists of Assistant personnel manager, concerned department head and request initiator. PROMOTION POLICY A time bound promotion policy is followed at KELTRON CONTROLS, on completion of three years employee will get an increment and promotion. GRIEVANCE HANDLING Legalistic approach of disciplinary handling is carried out at KELTRON CONTROLS, Foreman/Supervisor talks with employee and if the grievance is not settled, the foreman channels the indiscipline action to personnel manager who asks for an explanation within three days. If the case remains unsettled an enquiry commission is set up and if it is still unsettled, it is taken to labor officer. WELFARE ACTIVITIES Welfare activities carried out in KELTRON CONTROLS, include subsidized food at canteen, subsidized travelling in company bus, and provide ESI (Employees State Insurance) to the permanent employees with salary less than 10,000. [ESI is a social security scheme for organized employees in an organization by Central government.]. Gratuity and provident fund Uniform is supplied for factory workers.
72
PERFORMANCE APPRAISAL The superiors of the department do annual appraisal of the employees. There is an Annual Appraisal form and it will be given to HR department and kept in each employee’s personnel record that contains their entire details. INDUCTION AND TRAINING Newly appointed are given training for one week or more in the concerned department. Other than the induction training the personnel department identify the training needs of the employees and conduct training programs. Personnel department organizes the training program using internal faculty or engaging faculty from reputed organizations. The HR department in consultation with the concerned departmental heads conducts in house-training programs special recruitments. When employees attending a training program conducted in house, a feed back about the usefulness of the training is obtained and consolidated. The company imparts both in-house and out-houses training programs. The training program includes the following: • Induction training • Training on change of process, technology etc. 73
• Training in change of job, promotion, Transfer. • Development training for awareness for new concepts. • Health Program for general awareness of health training.
3.6.6) FINANCE DEPARTMENT, FIG (3.8) General Manager
Deputy General Manager
Finance Planning
Cost accounting
Assistant Finance officer
Assistants 74
Finance is considered as the vital part of any business organization. It is the department, which controls the procurement and allocation of funds in the business operations. In KELTRON CONTROLS, the finance department is common to all the department of the organization. It is working with the deputy general manager as the head. FUNCTIONS: 1) Generation and utilization of funds 2) Treasury operations 3) Financial book keeping and finalization of accounts 4) Costing 5) Budgeting and financial planning 6) Working capital management 7) Preparation of wage bills 8) Invoicing SOURCE OF FUNDS The source of fund for KELTRON CONTROLS, Aroor is the Kerala industrial revitalization fund (KIRFD) from the bank. The finance department of KELTRON CONTROLS, gives an application to the cooperate office, along
75
with the project details/the order given by the customer, and the corporate office takes the necessary steps to get the loan allotted by bank. The loan allotted for a particular project should not be utilized for other purposes, all the expenses related to the particular project should be met from this loan and the full details of all expenses have to be given to the bank. All the payment given by the customers are to be given to the bank. All the payment given by the customers are to be given to the bank and the bank after taking their 12% interest give back the fund remaining to the finance department of KELTRON CONTROLS,. PROCEDURES Setting various financial performance standards and modifying these from time to time. 1) Preparation of master control budget based on department wise budget, forwarded by the Head of Departments. 2) Monitoring of the key financial ratios. 3) Planning and implanting the growth strategy of the organization. 4) Maintenance account, preparation of annual account, annual reports etc. Cost study and output AUDIT 76
The company has efficient external auditors. Moreover there is efficient internal check system also. Besides this statutory auditors appointed by the company law board audit the accounts, records of the company. After completing the audit, copy of the report is sent to the accountant and also presented before the shareholders. If there are any comments from the auditors, shareholders, the company should provide sufficient explanation to these comments. In addition to this ISO audit is also carried out. ACCOUNTING POLICIES • Cash payment • Cash receipt • Bank payment voucher • Bank receipt • Journal voucher • Purchase journal • Sales journal • General ledger • Control • Office cash KEEPING ACCOUNTING RECORDS Files maintained in the finance and accounts department are kept unlocked 77
Shelves. Current ledgers, books, subsidiary registers, salary sheets are under the custody of the concerned personnel, the asset register is kept with the HOD. Rank cash books, journal books, salary records, purchase journal, sales day book and other subsidiary register of previous years are kept in the record room adjacent to the accounts departments. Vouchers pertaining to 8 years are kept in boxes mentioning the names of the vouchers and year on the boxes in the record room. REVENUE ACCOUNTING POLICIES The accounts are prepared under the historical cost of accounting and evaluated on a going concern basis with revenues recognized and expenses accounted. SOME OF THE REVENUE ACCOUNTING POLICIES ARE : • Fixed assets and depreciation • Inventories Foreign • currency transaction • Deferred tax MANAGEMENT OF PAYABLES AND RECEIVABLES: Prompt payment of payables is followed at KELTRON CONTROLS, The division is following a very lenient credit policy. The main customer like BHEL and BARC are provided credit period of 60 days with 10% retention 78
and 2 years with 10% retention respectively. This lenient credit nature of the division is due to project nature of work undertaken and delay in sanctioning the product features than the one already ordered. Budgeting and financial planning: At the beginning the financial year the heads of each SBU will prepare budget of their concerned department and with this the Finance department will prepare the budget for the entire division. The budget prepared in KELTRON CONTROLS, includes: • Order booking budget • Production budget • Sales budget • Revenue Budget • Profitability budget • Cash flow budget • Capital expenditure budget
79
Profit and loss account OF KELTRON CONTROLS, for the year ended 2012 Particulars INCOME
Amount
Particulars EXPENDITURE MATERIAL
amount
SALSE
169312988
CONSUMED 94142952.8 PURCHASE TO
LESS EXISE DUTY
20144052
RESALE OTHER
NET SALES
149168936
EXPENDITURE 86335958.1 INTEREST AND
7625227
BANK OTHER INCOME INC/DEC IN STOCK
3817698.3 -800606
CHARGES 1785830.1 DEPRECIATION 1452121.4 SHARE OF EXPENDITURE 9065218 CONSUMPTION FOR
CAPTIVE
PURPOSE TOTAL
152186028.3 19770107.
NET P&L FOR THE YEAR PLUSS/MINUS PRIOR PERIOD ADJ. BALNCE OF P&L CARRIED
6 570106.9 19200000.6 80
67991386
TO B/S Balance Sheet as on 31/3/2012
Liabilities SOURCE
Amount
Asset APPLICATION
OF
FUND
Amount
OF FUND FIXED ASSET
11647526.6
P$L A/C DIVISIONAL
19200000.6
STOCK
26918766.9
CONTROL A/C
199479205.9
DEBTERS
276693887.7
CREDITERS ADVANCE
109131206.1
CASH & BANK
26490795.4
FROM
LOANS
CREDITERS
5804257.7
PROVISIONS
34005409
TOTAL
367620079.3
AND
ADVANCE
25869102.7
TOTAL
367620079.3
3.6.7) ASSEMBLY SHOP, FIG (3.9) 81
General Manager
Chief general Manager
Assembly shop (AM)
Older Processing
Workers
The sole unit at KELTRON CONTROLS that has received ISO 9000-2001 Certification is the assembly shop. The KELTRON CONTROLS, PCs are made at assembly shop. 82
ORGANIZATION’S CONTRIBUTION TO THE SOCIETY SOCIAL CONTRIBUTION: Social contribution of the company includes the following: 1) KELTRON CONTROLS, Aroor is providing both direct and indirect employment to the people in the nearby areas and thus, contributing to the total growth of the society. 2) The company, by taking up Project for Physically Disabled, is providing a support hand to physically challenged people. ENVIRONMENTAL CONTRIBUTION: 1) Environmental contribution of the company includes the following: 2) The company yearly sells out the scrap left out after production to contractors by inviting tender quotations, thus ensuring proper disposal of wastes without making public nuisance. 3) Company’s pneumatic products mainly use air an energy sources, thus it helps to avoid the successive use of other energy sources such electricity, water etc.
83
CHAPTER-4 SWOT ANALYSIS
STRENGTH:
84
1) The long term functioning of the company can be considered as its one of the greatest strength. It has also from these years of working gained reputation and goodwill throughout India. 2) The strength of .KELTRON CONTROLS, is a team of experienced technocrats with smart supporting staffs. It is the only manufacturer of capacitors in Kerala and its quality is known worldwide. The opportunities are plenty in the industry as diversification in electronic industry is happening at a brisk pace. 3) Always trying to come up with new products to face competition. KELTRON CONTROLS, have made constant efforts to come up with new products to sustain competition 4) Wide product range, to cater to different sections of the market and to generate more revenue. 5) KELTRON CONTROLS, has undertaken projects in almost all states and they have fully fledged Marketing Offices in major cities across India hence they have the benefits of wide area of operation. 6) Manufacturing capability: Four fully equipped production facilities of over 500000 sq.ft. In area. 7) A regular supplier of custom products to the Departments of D e f e n s e a n d Space to Government of India since 1980.
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8) Fully fledged Marketing Offices in eight metropolitan cities of the country: Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad, Ahmadabad and Thiruvananthapuram Customer Support 9) Customer support Centers in all the Districts of Kerala State and also in eight metropolitan cities of the country : Mumbai, Delhi, Chennai, Kolkata, Bangalore Hyderabad, Ahmadabad and Thiruvananthapuram
WEAKNESS: 1)Youngsters appoint as contract workers leaving the company after receiving training, these youngsters lack the commitment and dedication, as they only stick on for experience 2)High employee turnover and absenteeism. 3)In public sector organizations diversification is very slow unlike the private sector, which is also a weakness. Also the machines are getting obsolete. Also in government organizations recruitments a problem.
OPPORTUNITIES:
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1) Growing market for replacement of spares and after sales service, hence there is for revenue generation 2) The only competitor for C & I division is Instrumentation Ltd hence can have better control over the market and there are no competitors for PPD.
THREATS: 1) Many experienced employees have been retiring for the past 2-3 years. So there is urgent of new appointments which are not yet approved by government. Increased levels of competition for ITG. 2) Liberalized import policy has lead to adverse effect on company’s future. 3) Due to the fast changing technologies, the life cycle of the products and systems becoming shorter. 4) Changing Government always making adverse effect in the working of the company.
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FINDINGS AND SUGESTIONS
FINDINGS: 88
1) KELTRON CONTROLS, produces high quality products but at a comparatively higher price than its competitors. 2) KELTRON CONTROLS, has a very good brand image among the public due to the best quality television sets and other consumer products. 3) The current system is only partially automated 4) The planning purchase, store functions are carried out manually which is tedious task that shows a gap between the process and operations. 5) The processes performed involving the retrieval of information and identifying the goods status is time consuming. The KELTRON CONTROLS, does the market research and receives orders from the customers. Once the orders are received the purchase department purchases the products at an optimum level KELTRON CONTROLS, warehouse by, the job lot storage approach, where all the different products related to the needs of a certain type of customer or related to the needs of a particular job are stored together. The stock is verified on quarterly basis. At first the order is accepted by the marketing department, planning group raises the purchase intent then the purchase department places order to suppliers who can deliver the goods required by the customer. On the receipt of ordered material the stock department posted into the stock/bin card. The next step is to deliver the material to the customer which also required posting to Bin Card updating stock. The transportation is mainly done through the roadways and in some 89
cases through rails also. The store has to keep various registers of all the transactions taking place. This demands an excess manpower and requires a lot of time in the completion of the process THE MAIN PROBLEMS FACED BY KELTRON ARE: 1) The transaction process in material management is very complex and each process consumes a lot of time. 2) The business process is lengthy and manually done. As a result of this, managing the goods in transit, controlling the stock lacks the 100% percentage accuracy. 3) A lot of time is consumed in transportation since the facilities are located in a remote area like Aroor. 5) There is limited scope for product diversification. 6) KELTRON CONTROLS, produces high quality products but at a comparatively higher price than its competitors. 7) Proper actions and efforts are not made to extend the existing customer base. 8) There has been shortage of trained personnel thereby affecting the after sales services. 90
9) Uncontrolled increase in the price of raw materials 10) Lack of promotional activities.
SUGGESTIONS: 1) The company should try to use its production capacity to the maximum. 2) The company should try to sell its products at competitive price. 3) KELTRON CONTROLS, needs to automate its procedures to effectively promote, maintain and satisfy customer requirements promptly. An in-house developed ERP like software may be implemented to integrate all business activities of KELTRON CONTROLS, 4) The setting up of an R & D department would be very helpful for identifying innovative products for the development of the organization. 5) New marketing strategies have to be done to attract new customer KELTRON CONTROLS, can develop and implement end-to-end solution with in-house capability wherever possible and with strategic tie up in case of technological gaps. 6) Training has to be given to the service personnel’s to make after sales service effective. 91
7) Skilled workforce must be hired for the organization. 8) The past records have to be clearly and accurately maintained. 9) The goods have to be carefully maintained during their transition to the destination.
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CONCLUSIONS
CONCLUSIONS 93
The electronics hardware industry is the world’s most important goodsproducing sector. Not only does it employ more workers and generate greater revenue than any other sector, its products also enhance productivity in other activities and stimulate innovation across entire economies. Due to the global economic changes there is a tremendous growth in the electronic industry. India is also facing the global effects. Electronic industry is at its growing stage in India. It faces various challenges as well as more opportunities in the electronic, these challenges and opportunities are also useful for the organization in the industry to take the right decision at the right time. The various challenges faced by the Indian electronic industry in the year of 2012 are 1) lack of world-class infrastructure, lack of clear cut govt. policy for the industry, very little expenditure in Research and development, power of marketing not harnesses to the maximum, the opportunities for the electronic industry are- while the electronics sector in India is currently small, there are several offers that can be effectively leveraged to achieve higher growth under 3 heads: 1) Manpower 2) Market demand, 3) Policy and regulatory support. India has set as Rs300 billion worth of incentives and subsidies to encourage firms to set up electronics manufacturing units in the country. The government also approved Rs100 billion, as financial support for the development of electronic manufacturing clusters. These facilities can be used by KELTRON 94
CONTROLS, for its advancements. KELTRON CONTROLS, Ltd., Ardor is a division of Kerala State Electronics Development Corporation Limited. It was set up in 1979 to introduce the state-of-the art technology in the field of Control and Instrumentation. KELTRON CONTROLS, today, is poised to provide an entire range of products, solutions and services to its consumers in the areas of Electronic Components, Consumer Electronics, Control and Instrumentation,
Instrumentation,
Information
technology,
Cybernetics,
Communications, Industrial Electronics, Strategic Electronics and Traffic Management Systems. KELTRON CONTROLS, offers expertise as a System House to design, engineer, configure, supply, install, commission, and maintains large projects and provides customized solutions. The rich experience and capabilities of KELTRON CONTROLS, in the fields of Analogue Control System, Data Acquisition and Distributed Digital Control system remain unmatched in the country. A nation’s future and its ability to compute in the global market depend greatly on how it generates new ideas and innovations in science and technology. KELTRON CONTROLS, has initiated steps to create a knowledge center that would catalyze the process of knowledge assimilation as well its dispensation. KELTRON CONTROLS, is one of the leading e-goods manufacturing companies in Kerala. It is an ISO 9001 certified functioning company. It has always been able to provide high quality products. It has a committed set of technocrats who work tirelessly for the accomplishment of the goals of the company. The company provides service
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for the handicapped people giving high respect. It has a very eco-friendly surrounding helping its employees to keep a cool atmosphere. KELTRON CONTROLS, after its bad play has found a stage where it can make profits. As an electronic goods manufacturer, it has a bright future ahead, a future belonging to innovation and simplicity of electronics. Predictions of economic growth for the machine tool industry are conservative, but positive. A new spirit of cooperation exists among industry, academia, and government to develop programs that best utilize research resources to help industry resolve problems in the way of progress. There are even signs that training, a long neglected issue for the machine tool industry, is getting fresh attention. Meanwhile, pressures for lower cost, greater productivity, and improved quality are forcing even the most conservative machine-tool users to re-evaluate their equipment and procedures. The organization study at KELTRON CONTROLS, Ltd., Ardor has provided valuable information for me as a management student. There are many other factors, which deter the growth of the company. • High fixed overhead • Lack of young blood in the executive level • Potentials are not fully utilizing • Wastage of raw materials • Conventional Machines are used in large number in the plant 96
• Lack of Automation
CHAPTER-5 BIBLIOGRAPHY
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BIBLIOGRAPHY JOURNALS :
KELTRON CONTROLS, Annual Report WEBSITES: http://www.KELTRON CONTROLS, .org http://wikipedia.com BOOKS: Kothari C.R.-Research Methodology-New Age Publication, New Delhi Philip Kilter & Keller Kevin-Marketing Management-Pearson Education, India Jain P.K. & M.Y.Khan-Financial Management- Tata Mc GrawHill, New Delhi K. Aswathappa-Human resource Management- Tata Mc GrawHill, New Delhi Earnest E. Adam-Production & Operations Management-PHI Publication, India Michael Armstrong, `A Hand Book of Human Resource Management Practise,10th edition,
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