Kel Industry

AN ORGANIZATION STUDY AT KEL
1.1 INTRODUCTION
cge.
Thus studying this various aspects of organization is great benefit to

the management students. So this organization study helps me to understand practical
knowledge about the function of an organization.
1.2 OBJECTIVES OF THE STUDY
Some of the objectives of conducting the organization study is as follows:
• To study about the organization structure.
• To understand about the function of various department.
• To know the financial position of an organization.
• To identify the strength , weakness, opportunities and threat faced by the

organization.
Institute of Management in Kerala, Kundara 1

• To understand the different business operations carried out in the

organization.
• To know the various departments such as Marketing, Finance, Operations,
and Human Resource etc... and its activities and functions.
 To conduct SWOT and Porter’s five for analyzing competitive strategies.
 To relate theories and concepts in to practical and their by to identify and

Suggest feasibility solution and recommendation.
1.3 METHODOLOGY
Both primary and secondary data were used for the study
Primary Data
In this organization study the role of primary data is important.

Because most of the data are getting through primary sources like direct
interview, face-to-face communication observation etc...
In this study the primary data sources are:
• Discussion with the department heads.

• Discussion with divisional heads.

• Personal interaction with workers in the company.

• Through observation of function of organization.
Secondary Data
In this organization study the secondary data is very important than

that of primary data. Published documents, journals and magazines are the
important secondary data. So these are also needed for the completion of the
organization study.
1.4 SCOPE OF THE STUDY
 Organization study is used to know the working of an organization and its various
departments.
 It helps to analyses how well the organization performed its activities.
 This study helps to interact with the organization executive of the company.
 Organization study mainly deals with the environmental analysis of the

organization based on the assumption that both the External and Internal factors
control the organization.
 The organization study incorporates the structure, product, policies, the different
activities and a SWOT analysis of the organization.
 This study helps in practical aspects of the theories which are learned in the
classroom.

1.5 LIMITATIONS
 Organizational limitations
Most of the employees were very busy with their office work. Some of the
records were kept confidential so that data were unable to be collected.
 Time constrains
This is a Fifteen day study and this time is not enough to study an
organization thoroughly.
 Possibility of biased information.
In an organization there is a chance of giving biased information from the

executives to the researchers.
1.6 CHAPTERISATION
CHAPTER 1 deals with the introduction of the topic .It contains the objectives of the
study, its scope, methodology and limitation of the study .
CHAPTER 2 deals with the industry profile.
CHAPTER 3 deals with the company profile and the various services provided by the
company.
CHAPTER 4 deals with the organization structure and the functioning of the
departments.
CHAPTER 5 deals with the objective wise analysis of the study.

CHAPTER 6 deals with the SWOT analysis and Porter’s five force model analysis.
CHAPTER 7 deals with findings, suggestions and conclusions
2.1 INDUSTRIAL PROFILE
2.1.1 ELECTRICAL INDUSTRY
Introduction
The energy is neither be created nor be destroyed but it can be

converted from one form to another. The generation of an electrical energy is nothing but
the conversion of various other forms of energy into an electrical energy. The various
energy sources which are used to generate an electrical energy on the large scale are
steam obtained by burning coal, oil, natural gas, water stored in dams, diesel oil, nuclear
power and other non-Conventional energy sources.

The electrical power is generated in bulk at the generating stations

which are also called power stations. Depending upon the source of energy used, these
stations are called thermal power stations, hydroelectric power stations, diesel power
station, nuclear power stations etc...This generated electrical energy is demanded by the
customers. Hence the generated electrical power is to be supplied to the customers. The
electrical power industry provides production and delivery of electrical power (electrical
energy) often known as power or electricity in sufficient quantities to areas that need
electricity through a grid. Many house hold and business need access to electricity,
especially in developed nations, the demand being scare in developing nations. Demand
for electricity is derived from the requirement for electricity in order to operate domestic
appliances, office equipment, industrial machinery and provide sufficient energy for both
domestic and commercial lighting, heating, cooking and industrial processes. Because of
these aspects of the industry, it is viewed as a public utility infrastructure.
In many countries electric power companies own the whole

infrastructure, from generating stations to transmission and distribution. For this reason,
electric power is viewed as a natural monopoly. The industry is generally heavily
regulated, often with controls and is frequently government-owned and operated. The
nature and state of market reform of the electricity market often determines whether
electric companies are able to be involved in just some of these processes without having
to own the entire infrastructure, or citizens choose which component of infrastructure to
patronize.
2.2 WORLD SCENARIO
Although electricity has been known to be produced as a result of

the chemical reactions that take place in an electrolytic cell, Since Alessandro Volta

developed the voltaic pile in 1800, its production by this means was, and still is,
expensive. In 1831Michael Faraday devised a machine that generated electricity from
rotary motion but it took almost 50 years for the technology to reach a commercially
viable stage. In 1878, in US, Thomas Edison developed and sold a commercially viable
replacement for gas lighting and heating using locally generated and distributed direct
current electricity.
The world’s first public electricity supply was provided in late

1881,when this streets of Goldalming in the UK were lit with electric light .This system
was powered from a water wheel on the River Wey which drove a Siemens alternator that
supplied a number of arc lamps within the town. This supply scheme also provided
electricity to a number of shops and premises.
Coinciding with this in early 1882, Edison opened the world’s first
steam powered electricity generating station at Holborn Viaduct in London, where he had
entered into an agreement with the City Corporation for a period of three months to
provide street lighting. In time he had supplied a number of local consumers with electric
light. The method of supply was direct current (DC).
Tesla’s alternating current system remains the primary means of

delivering electrical energy to consumers throughout the world. While high voltage DC is
increasingly being used to transmit large quantities of electricity over long distances or to
connect adjacent asynchronous power systems, the bulk of electricity generation
transmission, distribution and retailing take place using alternating current.
2.3 INDIAN SCENARIO

Electrical Industry came into existence after the period of the First
World War, and the first one was a fan industry in Calcutta in 1921.The manufacturing of
the electrical equipments like Transformers, Generators, Insulators etc... took up later.
Heavy electrical industry covers units manufacturing large plants and machinery required
for power generation, transmission, distribution and utilization. These include turbo
generators, boilers, various types of turbines, transformers, motors and switch gears. The
major areas where the heavy electrical equipments are used are the large projects for
power generator including nuclear power stations, Petro chemical complexes, chemical
plants, integrated steel plants etc...The share of the domestic equipment is about 66% of
the country’s generation capacity.
The industry has also established a strong manufacturing base to

the requirement for the equipment for the equipment for the nuclear power plants in the
country. The domestic heavy electric equipment manufacturer are making use of the
developments in the global market with respect to the product designs and upgrading of
manufacturing and testing facilities. The industry is also competitive in the field of design
and engineering as the skill sets available in the country are relatively less expensive.
2.4 STATE SCENARIO
The first public sector electrical equipment industry setup in Kerala

was the Metropolitan Engineering Company limited in Trivandrum in 1945. It was
followed by the starting of Electrical and Allied Industries Pvt. Ltd (EAIT) at Kundara in
1946. EAIT at 1964 was taken over by Govt., which was registered as a Govt. of Kerala
undertaking. At present there are five public sector electrical equipment industries
working in Kerala and they are:
• Metropolitan Engineering Company Ltd

• United Electricals Ltd.
• Traco Cables
• Kerala Electrical & Allied Company Ltd.
• Kerala State Electronics Development Corporation Ltd.
Table No: 2.1
No Company Name Products

1 Metropolitan Engineering Co.Ltd Isolators, Fuses, Switches
2 United Electrical Ltd Meters, Motors, Capacitors
3 Traco Cables Telephone cables, PVC Cables
4 Kerala Electrical &Allied Co.Ltd Alternators, Transformers
5 Kerala State Electronics Development Capacitors, Resistors, Television
Co.Ltd.
3.1 COMPANY PROFILE
The Kerala Electrical & Allied Engineering Co. Ltd., popularly

known as KEL was established in 1964 in the State of Kerala, India and is fully owned by
the State Government. (KEL) is a multifaceted company fully owned by the State
government. Through its three production facilities, located in various districts of the
State, this ISO 9001: 2000 complaint company provides basic engineering services and
products to many of its clients besides executing projects of national importance for high
profile clients like various defense establishments.
The company manufactures and markets products like general

purpose brushless alternators, brushless alternators for lighting and air-conditioning of

rail coaches, medium power and distribution transformers, BLDC Fan as well as
structural steel fabrications The product categories for defense applications include high
frequency alternators, frequency convertors, special alternators and power packs for
missile projects. The power packs designed and supplied by the company for missile
projects like Falcon, Prithvi, Trishul and Akash have been pioneering efforts. The
company has also supplied special alternators to the Army (Military Power Cars) and Air
Force (Radar Applications.)
The company's all-India marketing network with regional offices in

all metro cities cater to major institutional clients like the State Electricity Boards, Indian
Railways and various defense establishments besides the general market clients. KEL is
one among the largest, most vibrant and productive Public Sector Undertaking, and is
fully owned by the Government of Kerala. A multi-product engineering company,
consistently catering to an envious client base, ranging from the army and air force of
India to world-renowned space research organizations, highly competent engineering
companies to mammoth institutions likes the Indian Railways. The company with three
state-of-the-art manufacturing units spread across Kerala has a pan India presence with
marketing offices in major metros and select cities.
3.1.1 HISTORY
Kerala Electrical And Allied Engineering Company Limited

known as KEL was started in the year 1947 with 50% of the share for government and
taken over by government in 1964 as an undertaking of Government of Kerala engaged in
the manufacture of electrical engineering goods. Another unit was set up at Mamala
(Ernakulum District) as part of KEL’s expansion programmers which became operational
in 1968. KEL was also entrusted with the charge of Enclose, a sick unit in Palakkad that
was taken over by the government of Kerala in1977, which was developed as their 3rd
unit. In 1986, a High-tech mechanized foundry at Kundara was added to KEL group of
production units. In 1990 a new unit established in Bedradka (Kasargod District), Kerala
with latest technology and modern equipments.

3.2 CORPORATE PROFILE
The corporate office of KEL is located at Kochi. In addition to

these production centers a project division for execution of turnkey projects, an R & D
wing and centralized marketing network are having Head Quarters in the Corporate
Office. The organization has strength about200 qualified Managerial staff and about 1500
employees including special skilled works. The present product range of the company
includes Brushless Alternators for train lighting and air conditioning, ground power unit
(GPU) for aircrafts, high frequency alternators for defense application and Antarctica
expedition, distribution and power transformers, HRC fuses, switchgears, brushless ac
generators. The present sales turnover of the unit is about Rs. 20crores.
3.3 MANUFACTURING UNITS
 Kundara unit, Kollam (dist), Inception: 1964

This is an ISO 9001 certified unit which was started in the year 1964
imbibing technical know-how from EVR of France for the purpose of manufacturing
Statodyne Brushless Alternators used for lighting and air conditioning of Railway
coaches.
There are three divisions in this unit namely:
• Statodyne Alternator Division:
Statodyne Alternator Division manufactures Statodyne Brushless

Alternators used for lighting and air conditioning of Railway coaches. Statodyne
Alternator Division has installed capacity of 3000 numbers of alternators per
annum. More than 25000 alternators are in service with the Indian Railway
Station alone.
• Foundry Division:

Foundry Division has a capacity of 1500MT per annum and manufactures

Spheroidal Graphite Iron and Grey Iron Castings. This unit has fully mechanized
molding lines with sophisticated testing equipments to ensure quality castings.
• Battery charging systems division:
Manufactures brushless alternators for automobile battery charging

system. The product has been developed through the company’s own R & D
efforts. The alternator caters to the high power needs of modern vehicles and
heavy earth moving equipment. It offers long life and maintenance free
Operation.
 Mamala Unit, Ernakulum District, Inception: 1968
The transformer Division of KEL at Mamala, Ernakulum, was established in

1968, with the technical assistance of BHEL to manufacture supreme quality transformer
for various State electricity Boards, Government Departments, Public and Private Sector
Companies. This division, ISO9001 is certified by TUV, boasts of a long sustained list of
extremely satisfied clients, many of whom who have stood by KEL, for decades. Over
the years relying on the unmatched quality of KEL transformers, electricity boards across
India perfectly maintain a healthy power distribution supply system. The Transformer
Division has production and distribution of medium range power transformers up to
1600KVA. Manufacturing custom-build transformers, for specific requirements is yet
another specialty of KEL. This division undertakes design, fabrication and
commissioning of hydraulic control gates and hoists for power and irrigation projects,
cranes, pressure vessels and other industrial structure.
 Olavakkod Unit, Palakkad District, Inception: 1977

Unit started in the year 1977 with technical know-how from UNELEC of

France. This unit manufactures Isolators/Changeovers, Switch fuses, Fuse units/Cutouts,
Distribution fuse boards/Panels and castings used for Industrial, Commercial and
domestic applications through their LT Switchgear Division.

Product Range
• Fuse Switches, Changeover switches, Porcelain Fuse Units.
• Distributions fuse Boards and industrial type switch boards, Distribution Boards.
Project Division:
KEL project wing headed by the GM attached to its corporate office undertakes
turnkey projects in design, fabrication, supply and erection of gates, hoists
and controlling equipments for power and irrigation projects and civil works including
heavy machinery erection.
 Edarikkod Unit, Malapuram District, Inception: 1988
Unit was commissioned in 1988 for the manufacture of Brushless
Alternator for Automobiles (BAA). But as per the instruction of the government the
execution of the BAA project was suspended as the government wanted to give top
priority for the implementation of the Kasargod project. The capital outlay originally
envisaged for BAA project was Rs.6.42crores, which was subsequently enhanced to
Rs.12.75 crores due to the cost overrun which is in turn, was consequent to the delay in
execution. Now this unit is used for the manufacturing of Power and
Distribution Transformers.
Marketing Division:
The corporate marketing Division piloted by the GM (Marketing) is

controlling the various service centers and Regional Offices in New Delhi, Bombay and

Madras. And sales and service centers in Kanpur, Calcutta, Bhopal, Hyderabad,
Bangalore, Coimbatore and Trivandrum.
Expansion Project:
While trying to consolidate its exciting units by means of

technological up gradation,KEL in a head on its way with future expansion projects
including brushless alternator for automobiles, Nickel, Cadmium Battery ,special purpose
motor project with technical collaboration from Austria.
3.4 The various products developed by KEL R&D wing are the following:
• 5 kVA,400 Hz alternator for Antarctica expedition for the defense department of

Govt. of India
• 20KW DC manual and self propelled type ground power units for ‘Vayudoot’ for
starting their Aircrafts.
• 30kVA rotary converter for radar application for helicopter starting for Indian
Navy.
• 3KV generator for wind mill applications.

• 5KV alternator for with rectifier regulator unit for battery charging in locomotive
engines.
• 40kVA ground power unit for requirements of starting of fighter aircrafts like
‘MIRAGE’.
• 90 kVA ground power unit for Boeing and Air Bus aircrafts
• 20kVA alternator for powering mobile radar installations.
3.5 Over Seas Partnerships:
As a company in tune with modern technology, KEL have had associated with reputed
overseas manufactures who are experts in their respective fields.

• Inductor type brushless alternator for lighting and air conditioning of rail
coaches --- EVR ,France
• HRC fuses --- UNELEC, France
• General purpose brushless a.c generators --- Moteures Leroy Somer, France
• Nickel-Cadmium battery project --- Honda, Japan
• Technical collaboration with ----T-Lin of Austria
3.6 Players in India
• Kerala Electrical and Allied Engineering Company

• H.M.T.D Chennai
• Stone India Calcutta
• Crompton Greaves Ltd Chennai
• Steasalite Ltd
• Press tech India
• Unitec
3.7 KEL-KUNDARA UNIT
The Kundara unit of the company was established in the year 1946
in private sector for manufacture of low tension switches and was taken over by the Govt.
of Kerala in 1964.In the early 70’s the unit was diversified into the field of brush less
alternators for railway lighting. As a part of diversification program, new mechanical
equipments and facilities were added to the unit. KEL had set up a modern iron foundry
which manufactures spherical granite iron and gray iron castings of various grades at
Kundara unit.

The Kundara unit of KEL has manufacturing brushless alternators

which is acclaimed and accepted by the Railways as the most efficient and reliable one.
More than 25000 number of alternators manufactured in KEL are already in operation
with the Indian Railway alone.
3.7.1 Vision Statement of KEL
To be a globally recognized enterprise committed to enhancing

stakeholder value by providing world class engineering and power system solutions.
To achieve our vision by:
• Applying state-of-the-art technology, processes and innovative solutions.

• Building long term relationship with stakeholders in an environment of
fair business ethics and values.
• Creating value through sustainable and profitable growth.
• Leveraging productivity through highly motivated & empowered team.
3.7.2 Mission Statement of KEL
• Ensuring team work at all levels.

• Establishing and maintaining vendor evaluation and rating.
• Establishing and maintaining quality system suitable for meeting customer

requirement.
• Continuous improvement through constant up gradation of technology, process
and skilled manpower.
3.7.3 Core Values
• Fairness, transparency, integrity.

• Trust and mutual respect.
• Passion for professional and operational excellence.
• Corporate and social responsibility.

3.7.4 Objectives
To educate and train our skilled manpower on a half yearly basis at the
rate of 8 hours training per employee to upgrade the skill level and to reduce the rate of
absenteeism to 3% from 5% .Which will be measured on a monthly basis.
3.7.5 Quality Policy
The Quality Policy of KEL, Kundara is to Achieve Customer Satisfaction

by providing the right product and services at the right time as per Customer’s
requirements .
This shall be achieved through
 Ensuring team work at all levels.

 Establishing and maintaining suppliers’ evaluation and rating.
 Establishing and maintaining a quality system suitable for meeting customer
requirement.
 Continual improvement through constant up gradation of technology / process and
skilled manpower.
3.8 PRODUCT PROFILE
• Location : Kundara ,Kollam District

• Inception : 1964
• Technical knowhow : EVR of France
• ISO 9001 certified by RWTUV
• Statodyne Alternator Division:
• Used for : lighting & air conditioning of railway coaches

• Capacity : 3000 alternators per year

• More than 25000 alternators with Indian Railway alone.
• Foundry Division:
• Manufactures : Spheroidal Graphite iron & Grey Iron casting

• Capacity : 1500MT per annum
• Induction Furnace : 2x3T
• Fully mechanized molding lines with sophisticated testing
equipment to ensure quality castings.
Fig .3.1
3.8.1 PRODUCT RANGE
Table No: 3.1
No Range Name Purpose
1 3KW,24V Brushless Alternator Train lighting (Third Class

Coaches)
2 4.5KW,24V Brushless Alternator Train lighting (Second Class
Coaches)
3 4.5KW,110V Brushless Alternator Train lighting (Second Class
Coaches)
4 12KW,110V Brushless Alternator 2 Tier AC Coach(Meter Gauge)
5 18KW,110V Brushless Alternator 2 Tier AC Coach(Broad Gauge)

6 25KW,130V Brushless Alternator Roof Mounted AC Coaches

7 12KW Auxiliary Alternator Diesel Electric Multiple Unit
Coaches
8 18.5 KW Auxiliary Alternator Diesel Electric Multiple Unit
Coaches
9 2KW Diesel Generator (DG)Set Ground Power Unit
10 50kVA Diesel Generator Set Ground Power Unit
11 20kVA Alternator DG Set for Defense Applications
12 5kVA Alternator DG Set for Defense Applications
13 25KW Electronic Rectifier Unit Train Lighting (Ordinary
Coaches)
14 4.5KW Electronic Rectifier Unit Train Lighting (Ordinary
Coaches)
15 BL DC Fan Railway Application
USP
Induction Alternator
 Brush less excitation without winding on the rotor. Both field and
armature
windings are embedded in stator slots, hence no limitation for
working speed and
ideal for variable speed application like ---Train, Automobile,
Windmill etc…
 Totally enclosed fan cooled version available for

Dusty/Humid/Corrosive
environments.
3.8.1 Top customers:

• Integral Coach Factory, Rail Coach Factory

• Indian Railway
• Tanzania Railway Corporation
• Rites
• Station Power Controls Ltd
• L&T
• CGL
• Paras Electricals Ltd
• AVISH AVIATION Equipment Pvt. Ltd
• Medha Servo System
• DIGHI , Pune
• Indian Defense, Air Force
• Bharat Heavy Electricals Ltd(BHEL)
• Bharat Earth Movers Ltd(BEML)
Organizational structure
CHART NO:4.1 GM/UNIT HEAD

HOD HOD M
HOD M P&A M AS&S M MKTG M
MKTG TESTING
MMD MECH
ELE
M(P) AM PLNG
M(P) M(P) APO-1 AM MKTG
REG REG AM
D&D
M
FOREMAN AM FY CH
CH MMD
STAFF
SKILLED
CH CH AM
CH P&A
CH AM
SUPERVISOR
MMD STAFF
SKILLED
SKILLED
SKILLED
SI SKILLED GSTORE
USW S AAO-
USW STAFF STAFF
2
SEC
FOREMAN STAFF USW
GUARD SKILLED
JO
PEON
STAFF USW
STAFF
5.1 DEPARTMENT PROFILE
5.1.1 Personnel & Administration Department
5.1.2 Finance Department

5.1.3 Marketing Department
(a)After Sales Department
5.1.4 Production Department
5.1.5 Planning Department
(a) Dispatching Department
5.1.6 Materials Management Department
5.1.7 Design and Development Department
5.1.8 Quality Assurance Department
5.1 PERSONNEL DEPARTMENT

&
ADMINISTRATIVE DEPARTMENT
The term personnel management has now been modified as Human

Resource Management. But in KEL, they still follow the old term Personnel

Management. The Personnel Management controls the personals in company. Personnel

management function has a great role in productivity and quality. A human performance
is the “product of his/her ability and motivation”, right personnel/HOD policies are
important for sustaining ability and motivation in the human element. The technical
functions of this department include recruitment, performance, deployment, wage
agreements, discipline, performance appraisal, termination as well as activities.
There are 8 unions representing the workmen and the staff. The labor
relation climate has long been peaceful and conductive to production.
5.1.1 Policy
To achieve competency of our skilled manpower through constant

training, education and experience in order to product quality.
5.1.2 Objective:

To educate and train our skilled manpower on a half yearly basis at the
rate of 8 hours training per employees to upgrade the skill level and to reduce the rate of
absenteeism to 3% from 5% which will be measured on a monthly basis.
Department Structure
General Manager
Manager

Asst .Personnel
Staff
Chart No: 5.1.1
5.1.3 Duties of a Personnel Manager
 Manpower planning.
 Recruitment.
 Selection.
 Placement Procedures.
 Training and development.
 Performance appraisal.
 Transfer and Promotion.
 Employee Welfare Administration.
 Disciplinary action.
 Wages and Salary Administration.
 Leave Administration.
 Trade Unions
 Time Office Administration.
 Security Office Administration.
 Public Relations.

 General Estate Keeping.
 House Keeping Activities.
 Typing Section.
MAN POWER PLANNING
Manpower planning is one of the important functions of personal and

administrative management. It means corrective utilization of man power. They
undertake the task of creating human capacities which ensures that fully contributes to
the total organizational performance. They also have the responsibility for the
determination of manpower recruitment of the organization both in the right number and
of the right kind.
RECRUITMENT
Mainly three types of recruitment are following in KEL. They are:
1. Direct Recruitment:
On the basis of rules and regulations prevailing in the company, the

management can recruit the technical hands such as unskilled workers and
semiskilled workers. They are appointed as apprentice trainee. They are recruited
through employment exchanges. Sometimes security guards are also appointed
through direct recruitment.
2. Internal Recruitment:
In certain cases, company conducts an internal notification for higher posts. The
qualifications, experience, additional qualifications etc…required must be clearly
specified in the notification. The internal recruitment is through promotion, only
after considering the merits and performance of the employees.
3. External Recruitment:

In this type, recruitment is done through Kerala Public Service Commission

(KPSC).On the vacancies intimated by the management, KPSC advertises
through the media calling appropriate candidates. The test/ interview is conducted
by the KPSC and post them into the company.
SELECTION
Selection is mainly for the ex service men that is by an agency through application,
scrutiny test. The persons selected are based on interview for the placement of job.
GRIEVANCE HANDLING
Grievance is also handled by personal and administrative department. They collect the
grievance of the employees and informed to the top level managers and solved their
problems. There is a suggestion box inside the organization for the grievance of the
employees.
LEAVE STRUCTURE.
 Casual Leaves – 14 days
 Sick leaves – 14 days. (For more than three consecutive days sick leave,a medical
certificate should be produced.)
 Privilege leave -30 days
TRAINING & DEVELOPMENT

It is the effective tool for employees’ development. Three types of training
are adopted in KEL.
1. Induction Training:

The fresh employees and the transferred employees from other units must
undergo this training. A training schedule is prepared by the personnel department
and directs the employees to the various sections or departments for the training.
2. External Training
This is given to the permanent employees such as Engineers,

Officers and other Executives conducted by External agencies or External
organizations.
3. Internal Training
This type of training is given to technical persons working in various

division/Sections. Apprentice training also given as a part of internal training.
Work rotation is another technique for internal training. Management gives
training for a period of one year for the fresh employees. After the successful
completion of training he is recruited on probation and after he is appointed in
regular service. This training is compulsory for the company.
DISCIPLINARY ACTION
The personal and administrative department is responsible for disciplinary action

against violation of rules and regulations which are mentioned in the standing order.
Some Cases are
 Willful in subordination.
 Disobedience.
 Fraud.
 Theft
 Dishonesty
 Illegal Absence.

 Sexual harassment
PROCESS
1. Case reporting to the GM.
2. Issue show case memo.
3. Warning or enquiry.
4. Inform to head office.
5. Approval for enquiry and posting of inquiry officers.
6. Meeting management witness and employee witness.
PUNISHMENT ACTIONS
 Suspension
 Increment Banning.
 Dismissal.
TRADE UNION AND LABOUR RELATIONS
 Electrical and Allied Workers Union (U.T.U.C).
 Electrical and Allied Industries Employee Union (I.N.T.U.C).
 KEL Employees Organization (S.T.U).
 KEL Employees Union (C.I.T.U).
WELFARE MEASURES
 Loan Facility
 Canteen
 Recreation Club

 Education Benefit
 Death Assistance
 Funeral Assistance
 Retirement Assistance
 Marriage Contribution
 Provident Fund
 ESI
 Accident Benefits
 Maternity Leave
 Drinking Water
 Latrine & Bathroom
ALLOWANCES
 Washing allowances
 Night Shift allowances
 Milk allowances
 Food allowances
 Uniform allowances
 Insurance allowances
 Risk allowances
 Heat treatment allowance
 Cycle allowance

WAGES & SALARY ADMINISTRATION
Wages:
Wages depends on the long term agreements exist for duration of four years.
Wages are fixed after bilateral discussion with labor unions and management. These
wages are enacted only after the approval from the management. There is no profit
sharing, but they get indirect benefits out of realized profits.
Salary:
Salary = Basic Pay + DA + HRA + Allowance DA is based on the cost of living

index at Kollam district. Department of Economics and Statistics fix the
index. Government fixes the DA for officers. Allowances include washing allowance,
risk allowance, heat treatment allowance and night shift allowance etc.In fact there are 7
unions exist in KEL. But of these 7 unions only 4 unions are affiliated unions.
KEL has got 4 affiliated unions:
 Electrical & Allied workers Union (UTUC).
 Electrical & Allied Industries employee Union (INTUC).
 KEL employees organization (STU).
 KEL employees union (CITU).
TIME OFFICE ADMINISTRATION
Biometric punching system is being followed for all employees. Attendance

bonus is used for motivating employees. The scheme provides with 12days bonus salary
for employees with full attendance.

There are three shifts and a general shift
Table no.5.1.1
First Shift 12:00am to 8:00am

Second Shift 8:00am to 4:00pm
Third Shift 4:00pm to 12:00am
General Shift 8:00am to 4:30pm
TRANSFER & PROMOTION
TRANSFER
At the time of appointment every employee is given a declaration to the

management regarding, they are willing to work in all over India where ever the company
has units and regional offices. As par the manpower requirements, transfer the employees
to different units. In case when employee request to transfer as per his convenience, if the
management found the reason is relevant they gives consent. But the employee is posted
as the junior most employee of that unit in the same category.
PROMOTION
It is based on the promotion policy agreement; it’s strictly based on the

seniority of service. If there is vacancy in higher post, then promote to the higher post
otherwise give the higher grade scale.
5.2 FINANCE DEPARTMENT
Finance department is headed by the Head of the Department (finance)

.The main responsibility of Head of the Department is to take financial decisions, which

includes investment decisions, financing decisions and dividend decisions. The manager
has to keep constant touch with the entire department and also keep all the record of the
transaction. At the end of every year he is responsible for making the financial
statements.
Financial statements are prepared for the purpose of presenting a periodical

review of report on progress by the management and deal with the status of investment in
the business and result achieved during the uses of funds. Financial statements reflect a
combination of recorded facts, accounting principles and personal judgment. In order to
understand the financial performance of the company is necessary to analyses the
Balance sheet, Profit and Loss account.
To maintain all books of accounts up-to-date as per the statutory

requirements and manage working capital, preparation of budget ensuring discipline in
the case of financial resources preparation and analysis of the book of account. The main
books of account maintained in KEL are cash book, bank book, purchase register, journal
records, pay roll statements and Central excise record. The software used is Tally 9.0
5.2.1 FUNCTIONS
 To ensure maximum effective operation and healthy relation with customers,

workers and financiers etc.
 To maintain all books of account up to date as per the statutory requirement.
 To manage working capital.

 Preparation of budget ensuring discipline in the case of financial resource
Department Structure

General Manager
Asst.manager
(HOD)
Asst. Accounts
Officer 2
Jr. Officer
Staff
Chart No: 5.2.1
5.2.2 Objectives:
 To ensure maximum efficiency of operation and healthy relations with

suppliers, Workers, financiers etc.
 To maintain all books of accounts up to date as per the statutory

requirements.
 To manage working capital
 Preparation of budget ensuring discipline in case of financial resources.
 Preparation and analysis of books of accounts.

In KEL Financial statements are audited internally and externally. The

internal audit is done by corporate office while the external audit is done by government
officials. Also includes financial forecasting and planning, acquisition, safe keeping of
securities and other valuable documents like insurance policies etc.
The main responsibility of the financial department is to make.
 Investment decisions.
 Financing decisions.
 Dividend decisions.
5.2.3 The main account books maintained in KEL are:
 Cash Book.
 Bank Book.
 Purchase Register.
 Sales Register.
 Journal Register.
 Central Excise Register.
 VAT Records.
The software used in accounting purpose is Tally 9.0
5.2.4 Significant Accounting Policies
1. Accounting Convention

The financial statement is prepared under historical cost convention on accrual

basis and in compliance with Companies ACT 1956.
2. Fixed Assets
Fixed assets are stated at cost less depreciation. Assets and liabilities are recorded
with higher cost.
3. Depreciation
Depreciation of fixed assets has been provided as per rates indicated in line X1V
of Companies ACT 1956 under written down value method.
4. Inventories
 Finished goods are valued at cost on market price whichever is less.
 Excise duty is also taken into consideration
 Scraps are valued at net realization value
 Goods in transit are valued at cost.
5. Sales
 Sales comprises of sales of goods and services including excise duty.
 Price variation claims on sales effective are accounted for on accrual basis.
6. Consumption
 Loose tools issued to shop floor are stated as consumed and return off as
scrap.
 Consumption of materials for production is computed on derived basis.
7. Liability on material on transit

The liability on account of bank charges and other expenses on material in

transit on the date of closing is accounted on approval basis.
8. Research and Development
Capital expenditure on R&D is treated as an addition to fixed assets and

revenue expenditure on R&D is charged to P&L account under appropriate heads
in the year in which it is incurred.
9. Contingent Liability
Contingent Liability are not provided for, but disclosed in notes on accounts.
5.2.5 Source of Fund:
Main source of fund are from Government and from banks, Mainly 5 banks that
offer funds to KEL. They are:
 State Bank of India
 State Bank of Travancore
 State Cooperative Bank
 Federal Bank
 State Bank of Mysore
5.3 MARKETING DEPARTMENT
The main function of the marketing department in KEL is to establish and

maintain a quality system suitable for organization’s vision, commitments towards
products and services rendered to the customers.

The KEL’s main product is 4.5 KW and 25 KW alternators. The main

customers of KEL are Indian Railways, L&T, BHEL (Bharath Heavy Electrical Limited),
BEML (Bharath Earth Movers Limited) and Defense (Prithvi and Trishul Missiles). But
always main user is Indian Railways. As the target consumer is Indian Railway, KEL’s
marketing department has no need for marketing the product. So there are no markets
research and analysis activities done by marketing department.
KEL participate in open tender as and when railways invite tenders.

KEL’s service centers are located in all the metropolitan cities. These offices give all
support services to sale and marketing lean guarantee complete customer satisfaction. As
the number of customers is limited, there is having short channel of distribution.
5.3.1 Policy
To provide customer satisfaction and confidence to the customers that

quality is being maintained and will be continuously sustained in the delivered product by
providing the right product at the right time.
5.3.2 Objective:

 To meet customer needs both stated and implied in order to maximize the
order realization by 10% within one year.
 To reduce sundry debtors by maximizing the collection.
 Increasing the sales by minimum 10% by supplying the items in time.
5.3.3 Scope
The procedure covers all tenders enquiries, submission of tenders, acceptance and
amendments of orders execution, invoicing and collection of payment.

Departmental structure:
General Manager
Asst .Manager
Foreman
Staff
Chart No: 5.3.1
(a) Marketing Department Functions:
 Liaison with customer for receipt of tender enquiries.

 Purchase of tender documents.
 Evaluation and review – both technical and commercial.
 Pricing of the product, Preparation of order, Submission of tender.
 Tender opening, Negotiation, Follow up of order.
 Receipt of order review and acceptance.

 Order register
 Amendments from customers.
 Issue of sale order and follow up, Road permits.
 Arranging of inspection.
 Preparation of delivery Chelan.

 Invoicing
 Collection of payments.
 Management information and records keeping.
 RECEIVING THE TENDER:
Railway as they only customers of the KEL they have annual requirement.
For that they invite individual tenders. They evaluate the offer on the basis of the
past performance .Capacity, Technology, etc and award the tender to the best
bidder. It is the duty of the marketing department to receive the tender.
 EXECUTION:
Intimation goes to the production and other concerned department from

marketing department. Planning department plan the production actives .Material
department purchase the raw materials, store these material and issue item. It is the
duty of the material department to produce item accordingly to the order and in
time. When the production is over, production department will inform the
marketing department.
 ARRANGE INSPECTION:
Marketing department arranges the inspection. They invite the inspection

authority .Railway have their owe inspection authority. These authority are RDSO
and RITES they come to KEL and test the product accordingly to there
specification
 DISPATCH TO THE RESPECT CONSIGEES
If the inspection agency is satisfied with the quality of the product then it
dispatch to the respected customer.
 INVOICES PREPRATION:

Invoice IS prepared by the marketing department. Invoices contain
number of finished goods to sent, rate, total price etc.
 SENT TO PAYMENNT AUTHORTY
Marketing department will sent those invoices to the paying authority of

the Railways. Railway has a paying authority called FANCO.
 COLLECTION OF PAYMENT
Marketing department collect the payment from the payment authority of

the Railway. Collection of payment is handed over to the finance department.
(b) Marketing strategies followed by KEL
 Strict quality control
 Prompt supplier
 Trained sales personnel
 Credit facility
 Reasonable price
 Penetrating new markets
 Appropriate advertisement.
Pricing strategies
Pricing strategies that are used in KEL are

 Cost plus pricing
 Comparative pricing

 Pricing is also influenced by last tender that accepted by the

Indian Railway.
(c) List of registers used in Marketing Dept:
 Tender Register
 Sales Order Register
 Payment Register
(d) Market Share Analysis:
Table No: 5.3.1
COMPANY MARKET SHARE
KEL 26%
HMTD, CHENNAI 8%
STONE INDIA, CALCUTTA 28%
PRESS TECH INDIA 8%
STEASALITE LTD 28%
UNILEC 0%
CROMPTON GREAVES LTD, CHENNAI 2%
Market share Analysis

Market share
2
KEL
26 HMTD,CHENNAI
28 STONE INDIA,CALCUTTA
PRESS TECH INDIA
STEASALITE
UNILEC
CROMPTON GREAVES
8 LTD,CHENNAI
28
Chart No: 5.3.1
Competitors
 BHEL
 HMTD Chennai
 Stone India Ltd
 Press Tech India
 IC Electricals
 Crompton Greaves Ltd, Chennai
 P D Steels
 KAPSON
 UNILEC
(a) After sales department
Policy

To provide customer satisfaction and confidence to the customers that

quality is being maintained and will be continuously sustained in the delivered products
by providing the right product at the right time.
Objective
 To improve upon customer satisfaction by reducing customer complaints, other

than product complaints by 50% within 6 months.
 To meet customer’s need both started and implied in-order to maximize the order
realization by 10% within one year.
 To increase customer satisfaction by 10% of the existing index by avoiding delay
in providing on-time services by 10% within one year.
After sales and service department actives

Mainly two actives
1. Preventive action
a. Periodic action
b. Intimation of design changes
c. Training to customers
2. Servicing
a. Customer complaints
b. Warranty service & training
c. Maintaining tools , instrument and spares
d. Maintain calibration
5.4 PRODUCTION DEPARTMENT

The main function of the production department is the creation of a

product or service required satisfying customer needed wants and desire. Main problem
that KEL Kundara faces is that the freight charge of raw materials is high. KEL mainly
purchases raw materials from France, Germany and from some other states in India. This
will lead to the increase in the cost of production and also there will be an increase in the
selling price.
Structure of Production Department
General Manager
Work Manager
Manager 3
Asst Manager
Forman
Worker
Chart No: 5.4.1
5.4.1 Policy
Right product at right time will result the customer satisfaction through team work.

5.4.2 Objective
 Right product : reducing the rework/rejection. In house failures reducing rework

/failures by 25% at the following stage.
a) Shaft ground
b) End shield / turned/drilled
c) High voltage test/ wound frames
d) Testing of alternator with rectifier regulator unit
 Right time : achieving better on-time delivery by interesting the number of
satisfied customers by 85% within the next three months and 90% within one year
 Team work : improving employee involvement and team work through generation
of two suggestions as per quarter and implementing a minimum of two
improvement projects per year.
5.4.3 Product Features:
The system consists of brushless induction type alternators and a

completely static regulator rectifier unit. The alternator is completely devised of any type
of moving cost on sliding contacts and this ensure a trouble free operation without
periodically any maintenance. The regulator rectifier unit makes use of silicon diodes,
transformers and magnetic amplifier. All the components used in the rectifier regulator
units are unlike transistors and the thyristorstailor made to the requirements of the
hazardous application to which they are put into rolling stock. As such the reliability of
the KEL generating system is high.
5.4.4 Production Process
1. Ensure availability of material and allocate the work.
2. Receipt of materials /tools.

3. Projecting requirement of measuring and testing equipments.
4. Production process.

5. Return of items to store due to non conformity during production process.

6. Review of N.C items found during process.
7. Offering for inspections.
8. Issue of F.G.T.N (Finished Goods Transfer Note)
9. Return of excess material.
10. Production monitoring.
11. Breakdown intimation.
5.4.5 Equipments used in Production:
 Lathes
 Vertical turret lathes
 Milling machines
 Hydraulic press
 Drilling machine
 Slotting machine
 Shapers
 Bending machine
 Welding machine

5.4.6 Different Sections of Production Department:
 Fabrication shop
 Old machine shop
 New machine shop
 Winding & assembling section
 Foundry

Process Flow
FABRICATION
OLD MACHINE SHOP FOUNDRY

UNIT
NEW MACHINE SHOP

REGULATOR
SECTION
ASSEMBLY & WINDING
UNIT
TESTING
PAINTING SHOP
FINISHED GOODS
Chart No: 5.4.2
Process flow Alternator
5.4.7 Production Process:
Production of alternators comprises of two main stages:
 Component Manufacturing:

70% of the components used in the alternators are made in the house. These can
be classified into the following groups.
 Pressing and rolled parts

 Turned parts
 Tapped and drilled parts
 Welded parts
Supplementary activities are as given below.
 Painting
 Tool room
 Electrical and Mechanical maintenance
The main activities of these sections are explained below.

 Press Shop:
Infrastructure available includes hydraulic pressure mechanical

presses, rolling machines, shearing machine and press brake. But many of the
presses and shearing machine are old and need progressive replacement.
Automatic press protection systems need to be installed to prevent accidents. The
workers are all qualified ITI holders in this section.
 Machine Shop:
The main works that take place in this section are boring, drilling, facing,
centering, turning, milling, grinding and balancing. Two machine shops are there,
they are Old Machine Shop and New Machine Shop. Central lathes, Capstain
Lathes, Radial drilling machines, milling machines, grinding machines are being
used. The operators are all qualified ITI holders.

 Fabrication Shop:
The stator frames, the regulator boxes and the terminal boxes are being
fabricated here. Welding machines are used in this section. Grinding work is also
done here.
 Painting:
The regulator boxes and the terminal boxes are zinc plated after pre-
treatment. The stator and pulleys are painted with enamels after surface treatment.
The process is manual and conventional. For better consistency, semi/fully
automated painting system could be established.
 Tool Room:
The tool room functions solely on the skill of the die makers. The tools are
made using conventional methods of hand-marking and filing. Modernization has
been kept abeyance due to scarcity of finance. Making of new tools for replacing
worn out ones takes long time due to the conventional techniques of tool making.
Accuracy also varies from person to person. Hence modernization of tool room is
to be speeded up.
 Assembly, Testing and Finishing:
The alternator section comprising assembly, testing and finishing is headed by the
Asst.Manager. The assembly, testing and finishing section are given below:
 Assembly:
Assembly mainly involves the following operations,
1. Assembly of rotor and stator
2. Fixing bearing and end shields3.


Fixing alternator pulleys. Assembly operations are carried out manually. Since there is no
pneumatic puller, the dismantling operations are not so easy.
 Testing:
There are 3 test beds. There s provision for mounting the alternators near
the drive and subjected to all the routine tests as per the RDSO specifications.
Internal inspection is done for all the machines (100%). The RITES and RDSO
inspectors conduct type test and their inspection, the inspection affix seal on each
tested alternator. The test beds needs modernization. The computer aided testing
is to be provided so as the increase the output and consistency. More over
automatic error printout from the computer eliminates the manual recording of
test data as well. The huge cost cannot be afforded during the present stage of the
company.
 Finishing:
Finishing work on alternators comprises general checking, tightening the T.B

screws, cover fixing, sealing and packing in wooden cases. Pneumatic screw
drivers are better for consistent tightening of screws.
Finishing is the last stage in the manufacturing cycle, before physical dispatch to
the customer, the worker in this section should have a better orientation towards
quality and customer satisfaction.
Other important sections of Production Department:
o Regulator Section:
Functions are:

 AC to DC conversion (Rectification)
 To Charge Battery.
o Foundry Unit:
Foundry or casting is the process of producing metal/alloy

components parts of desired shape by pouring the molten metal/alloy into
a prepared mould and then allowing the metal/alloy to cool & solidify.
The solidified piece of metal/alloy is known as casting. The Foundry unit
in KEL was established in the year 1985. Silica sand is brought to KEL
from Cherthala for the processing of silica sand is 1500 degree Celsius
where Ordinary sand requires only 1000 Degree Celsius to melt. The silica
sand is dried and then only will used for processing.
o Furnace:
The total capacity of the furnace is 31/2 ton. The main advantage is
that we can prepare any grade metal. This furnace is worked under
induction principle. The voltage required for the furnace is from 350volt to
1500volt.
5.5 PLANNING DEPARTMENT
Planning is one of the important functions of the management.

The main functions of the planning department is to plan and schedule for the production

and dispatch. This department includes both planning and dispatch sectors. The objective
of the planning department is to co-ordinate the manufacturing operations in line with the
marketing plan so as to achieve the production target in time.
Structure of Planning Department
General Manager
Asst Manager
Foreman GRI
Chart No: 5.5.1
Staff
5.5.1 Policy
To establish and maintain a documented procedure for planning the

production availability of materials and schedule of dispatches for enabling the
organization to provide the right product and services at the right time every time as per
the customer requirements.
5.5.2 Objectives
 To minimize the difference between planned and achieved production.

 Monthly plan and monthly production schedule for the next month will be issued
on the last working day of every month.
5.5.3 Functions
 Get information from marketing department about the orders received. The
information contains all details about the customer quality and quantity.
 Analysis of orders and decide about when to start and how to start.
 Information is then passed to production department.
 Check whether materials are available in the store department if not then the
information is passed on to the materials department to purchase the materials.
5.5.4 Planning Process /Activity
1. Yearly Planning
2. Quarterly Planning
3. Monthly Planning
4. Preparation of work order.
5. Issuing of work order.
6. Raising Purchase Return.
7. Monitoring Production.
8. Analysis of production short fall.
9. Maintenance of records.
PROCESS FLOW CHART OF PLANNING DEPARTMENT
START
Monthly plan Monthly Production Schedule

Preparation of work orders issue to

various department
Short
fall if
any?
YES
NO
Dispatch as per
Schedule
CHART NO: 5.5.2

END
1. (a). Dispatching Department
In KEL dispatching activities are controlled by the planning department itself.
Objective
Eliminate wrong dispatches and reduce transit damages to 50% within one year.

Policy
Delivery of products in the right time.
Process/Activity
 Checking of finished goods and storing (FG Store).

 Checking and preservation (FG Store).
 Packing of finished goods (F.G.C.F.G.)
 Intimation for preparation of D.C and excise gate passes.
 Delivery of finished goods as per D.C
 Collection of acknowledge D.C from consignee.
KEL has tie up with a number of transporters for their dispatching and
transporting activities. About 30 companies are constantly interacting with the firm.
Some of them are:
 M/S Kerala Transport Co. Mukkada. Kundara

 M/s Suraj Goods Transport Service. Kollam
 M/s Carvan Goods Carriers Pvt ltd .kundara
Flow Chart of Finished Goods Store
START

Checking Preserving
&
Storing of Finished Goods
Packing
Instruction Packing of FG as per DC
s
Delivery of FG as per DC
Collecting of
Acknowledgement,
Copy of DC from Consigners
STOP
Chart No: 5.5.3
5.6 MATERIALS MANAGEMENT DEPARTMENT
This department deals with the purchasing of raw materials for the
production. The main functions are

 Purchasing.
 Storage.
 Inventory control.
 Standardization.
 Supplier Rating.
 General Store.
Material Management means managing materials in an organization with

the main objective of reducing the cost and efficient handling of materials at all stages
and sections in an undertaking. This department deals with material costs, supply
utilization and handling.
5.6.1 Policy
To establish and maintain the process for development for procurement of

right material and service at right time, from approved suppliers as our requirement and
those of our customers.
5.6.2 Objective
 Procurement of required quality and the quantity of materials at the best price.
 Maintaining continuity of supply to ensure production schedule at the minimum
investment.
 Avoiding of duplication of materials leading to waste of materials
and equipments.
 Creation of goodwill for the company through dealings with suppliers.

 To achieve 100% on time delivery by suppliers
 To develop alternative sources to the maximum extent possible.
Structure of Materials Department

General Manager
Manager
HOD
Manager
Asst .Manager
Engineer
Staff
Chart No: 5..6.1
5.6.3 Functions
 Procurement of requires quality and quantity of materials at the best price for
production as per design.
 Maintaining continuity of supply to ensure production schedule at minimum

investment i.e. inventory handling.
 Avoidance of duplication of materials leading to wastage of materials and

equipments.
 Creation of goodwill for the company through dealing with the suppliers, ABC
analysis is used in inventory handling of materials.

5.6.4 Sub Divisions of Materials Management Department
1. General Store
2. Purchasing.
3. Supplier Rating.
1. General Store
Objectives
To establish and maintain a quality system procedure for receiving,

storing and issuing of materials.
Scope
This covers all materials used in production, installation and servicing of plant
and machinery.
Quality System Procedure
1. Receipt of material.
2. Quality verification.
3. Preparation of GRNS.
4. Offering for inspection.
5. Inspection status.
6. Rejection Intimation.
7. Segregation.
8. Issue of materials.
9. Issue of materials to sub contractors.
10. Stock Intimation.

2. Purchasing
Objective
To establish and maintain a quality procedure for purchase of goods and services
to ensure that all materials and services obtained from outside sources fully meet our
requirements and those of our customers.
Scope
This covers all materials and services used in production, installation and
developments of technology and servicing of plant and machinery.
1. Vetting of Purchase Return.

2. Registration of sub-suppliers, new suppliers.
3. Floating of enquiry.
4. Emergency purchase.
5. Comparison of quotation.
6. Purchase order preparation.
7. Placement of purchase orders.
8. Purchase order amendment.
9. Follow up of purchase order.
10. Sub-contracting jobs.

11. Advice in discrepancies.
12. Rejection intimation.
13. Rejection Return.
14. Acceptance with deviation.
15. Issue under positive recall.

16. Retention of quality records.

17. Settlement of payment.
3. Supplier Rating
Objective
To establish and maintain a system for supplier rating, ensure consistency and
reliability in quality and delivery of products.
Scope
All suppliers supplying items that goes directly or indirectly into the final
product.
1. Supplier Evaluation
2. Supplier Rating.
3. Final supplier’s assessment.
4. Supplier Re-assessment.
Supplier evaluation process
Considerations
 Past experience in the related field.

 Reputation of the supplier.
 Experience with associated units.

 Supplier capacity assessment and supplier evaluation.
Supplier rating

Weightages
 Quality rating - 60 points

 Delivery rating - 15 points
 Service rating - 20 points
 Organization rating - 5 points
5.7 DESIGN AND DEVELOPMENT DEPARTMENT
5.7.1 Policy
To establish and maintaining a documented procedure for designing the

right product in the right time. This is achieved through continual improvement through

constant technology up gradation and team work at all levels so that customer satisfaction
can be achieved.
5.7.2 Objective
To design the alternators and its accessories as per design, plant on receipt
of the approved drawings or customer supplied drawings or customer’s supplied
drawings within the delivery period with zero design errors. So that field failures are
eliminated.
Departmental structure:
General Manager
HOD
Asst .Manager
Staff
Chart No: 5.7.1
5.7.3 Process for developing new product
1. Tender enquiry from marketing department.
2. Feasibility study.
3. Order and specification

4. Design Plan.
5. Design input collection.
6. Review of design input.
7. Design output preparation.
8. Review of design output.
9. Verification.
10. Issue of design report.
11. Prototyping.
12. Verification.
13. Validation of design.
14. Revalidation.
15. Design change control.
FLOW CHART OF DESIGN AND DEVELOPMENT
Start
Tender Enquiry from

Marketing Department

Feasibility Study
Order & Specification
YES Customer
Review
NO Feedback
Design plan
Collection & Review of Preparation of Design output

Design Inputs such as drawings TDS, BOM
etc. . .
Verification Review of design
Planning Materials Production Quality

Assurance
Prototype manufacturing Verification
Validation
Design Freezing
Chart No: 5.7.2
END
5.7.4 The design and development department activities are
1. Collection of input.
2. Design Calculation

3. Design review
4. Preparation of drawings
5. Preparation of Material list.
6. Preparation of materials specification.
7. Preparation of acceptance criteria.
8. Design review. (Output).
9. Modification of review.
10. Issue of drawings, Technical Data Sheet, material list.
11. Prototype manufacturing.
12. Preparation of Quality Assurance Plan and Validation Plan.
13. Validation & Review of validation design.
14. Modification if required.
15. Offering of prototype for customer inspection.
5.8 QUALITY ASSURANCE DEPARTMENT
DEPARTMENT STRUCTURE

General Manager
Manager 2
Staff
Chart No: 5.8.1
5.8.1 Policy
Quality policy of Quality Assurance Department is to ensure the quality of

materials/components to the concerned areas for further processing.
5.8.2 Objectives
 Materials offered along with Goods Received Notes s will be inspected within ten
days from
the date of receipt of goods Received Note.
 Reducing the defective material retuning from production to 50% within
One year.
5.8.3 QAD Functions:

 Incoming material inspection and analyze each and every inputs received.
 In process inspection
 Final inspection
 Quality System Procedure for Control of Inspection/Measure/ Test Equipment
 QSP for Calibration of Jigs /Fixtures/ Gauges/ Templates

 Decide on error declarations period
Quality testing is done at QAD (Quality Assurance Department). Quality

testing is done at 3stages. They are:
(a) Incoming Material Inspection:
The test conducted in the QAD and they verify every incoming raw
material against there levant ISO specification. When the material fails to the
criteria, the whole lot of batch is rejected, however when it require the materials
urgently department will reject only the fault item. The activities include:
 Acknowledgement Receipt of Goods received notes.

 Verify GRN with drawing/P.O
 Inspection of material and Record Data
 Indicate status

 Record non-conformity(QAD)
 Return Goods received notes to the store
(b) In processing Materials Inspection:
In process inspection which is sometimes called stage inspection, aims at

detecting Nonconformity at the earlier stage of processing to avoid wasteful effort

on output that is going to be rejected. If the Non-conformity is detected at an early

stage, it may be possible to rectify the Non-confirming product and make adjustment
in the process, thus preventing further production of Non-confirming products. In
process Inspection assures the persons responsibility for next stage of manufacturing
process that they are receiving correct input materials.

This test is conducted by the QAD during the production. The

production department offers the materials at various hold points for verification.
Then QAD checks the products and maintains record of conformity. The activities
include:

 Offering materials from production
 Indicating inspection and test status
 Maintain record of non-conformity

 Analysis of defective materials returned from production.
(c) Final test:
A final test for the reliability is carried out by KEL, on all alternators and
regulatorsas per specification given by RITS and Indian standard alternators will
perform. Its intendedfunction verified for a specified period under certain
experimental conditions. Test status for using suitable identification system
identifies the product by making tag, stamping etc. no product shall be
dispatched until activities specified in quality plan or documented procedure has
been completed.
5.8.4 Quality Manual
The quality management system established maintains and documented in the
quality manual. It is developed as a policy manual to describe the quality management

system followed in the organization. The quality manual includes:
 Quality policy
 Objectives

 Organization structure
 Responsibilities
 Authorities
 Scope
 Reference to procedures and process maps.
 Sequence and interaction of the processes.
 Policy of the company regarding each process or activity.
The quality manual is received and approved by the General Manager for correctness and
suitability to the organizational requirements.
5.8.5 QUALITY SYSTEM PROCEDURE FOR CONTROL OF

DOCUMENT
Objective
To make available required documents at all centers of operations related to quality

systems, to follow and demonstrate conformity to the specified requirements
incorporating the latest revision.
Scope
All documents such as quality system manual, quality system procedures, quality plan
and quality assurance plan, acceptance criteria drawing, specification, work instructions
format, charts, material list and master list of document.
5.8.6 QUALITY SYSTEM PROCEDURE FOR CORRECTIVE ACTION
Objective
To establish and maintain a documented procedure for implementing corrective action to

eliminate the causes of existing non-conformities at all levels of quality system,

to prevent the recurrence of non-conformities.
Scope
All functional areas of organization wherever quality system is implemented.
Overall Responsibility
Committee for continual improvement
5.8.7QUALITY SYSTEM PROCEDURE FOR PREVENTIVE ACTION
Objective
To establish and maintain a documented procedure for implementing preventive

action to eliminate the causes of potential non-conformities at all levels of quality system
to prevent the occurrence of non-conformities.
Scope
All functional areas of organization wherever quality system is implemented.
Overall Responsibility
Committee for continual improvement
SWOT ANALYSIS
SWOT analysis is the process of analyzing the various strengths,

weaknesses, opportunities and threats of an organization or firm. This analysis is useful
to make awareness of the organization’s strength that is where the resources are useful to

the firm to the maximum for the firm. The analyzing of the weaknesses of the firm helps
the firm to analyze the firm to identify the areas where they have to improve.
Opportunities analyzing will help the firm to analyze the areas where the firm can
propitiate their business or make a boom to their product market. The threat analysis will
be useful to the firm as they can be careful in those threat areas. Thus the SWOT analysis
is a useful strategic tool for analyzing the business.
Chart No.6.1
1. Strengths
 Good brand image.
 Good customer relation.
 ISO 9001:2000 certification.

 After sales services at various metro cities.
 Wide marketing network.
 Efficient personnel administration that bridges the employer – employee

relation unconditionally.
 Intensive training and development program for the employer and
employees that helps them to adopt to the changes in the technology and
environment.
 Fully equipped to manufacture the alternators from the initial stage of the
raw materials without depending on the external sources.
2. Weaknesses
 No ERP system.
 Lack of computerization and information technology application.
 Paper works for the internal correspondence is higher.
 The premises or structure of the firm is not worth to give a first

impression that has to be the best for an outsider.
 Lack of transportation facility.
 Lack of sufficient and Effective Sales Promotion Activities.
 Being a public sector company, lot of Political influence may affect

the smooth running of Organization.
 Raw materials are not freely available.
 Still using the old machinery.
 Lack of Multi skilled Labors.

3. Opportunities
 Globalization.
 Can develop more potential market.
 Largest Public Sector Company.
 Development of Railways.
 Increasing overseas market.
4. Threats
 High competition from the competitors.
 Increasing price of raw materials.
 Depends only on major customer.(Indian Railways)
PORTER’S FIVE FORCE ANALYSIS
The model of pure competition implies that risk-adjusted rates of return

should be constant across firms and industries. However, numerous economic studie

s have affirmed that different industries can sustain different levels of profitability; part
of this difference is explained by industry structure.
Michael Porter provided a framework that models an industry as being
influenced by five forces. The strategic business manager seeking to develop an edge
over rival firm can use this model to better understand the industry context in which the
firm operates.
According to Michel porter the nature and degree of competition in an industry depends
on the 5 forces. The points of force are represented as follows:-
Diagram of Porter's 5 Forces
Chart No.6.2
1. Rivalry among current competitor increased because of
 Aggressive sales promotion and the advertisement.
 Cheap credit facility.
 Cash discount and Trade Discount.

 Relative Price.
 Modernization.
 Players have similar strategies.
 Products are not much differentiated.
 Low market growth rate.
 Exit barriers are high.
2. Threat of substitutes
 Diesel generation.
 Arrival of electric trains.
The threat of substitutes is low by the factors like
 Brand loyalty of customers.

 Close customer relationship.
 Switching cost for customers.
 The relative price or performance of substitutes.
 Current trends.
3. Bargaining power of suppliers
 Availability of substitutes.
 Large no of buyers.
 The suppliers are fragment so this bargaining power is high.

 The switching costs from one supplier to another are high.
 Possible to suppliers integrating forward.
4. Bargaining power of buyer
 Price sensitive customers.
 High competition.
 Quality Assurance.
Customers bargaining power are high under the following circumstance.
 Concentration of buyer
 Undifferentiated product
Railways are the main buyer of the company. KEL exports its product.
Therefore the company is having local customers and international customers.
5. Threat of new entrance
 H.M.T.D Chennai
 Stone India Calcutta
 Crompton Greaves ltd Chennai
 Steasalite ltd
 Press tech India
 Unitee

The threat of new entrance to the KEL is low due to,
 Insufficient capital requirement for the new venture.
 The cost incurred for the product in its various stages may affect the
entrance.
 Economic of scale.
 Product differentiat
FINDINGS
The major findings of the study are:-
1. The major customer of KEL Kundara is Indian Railways.

2. An outstanding product of the division is the Statodyne brushless alternators.
3. The company has a good brand image.
4. Their products are marketed through an All India Network.
5. Marketing and after sales services offices are situated in all the metro cities.
6. The communication channel in KEL is very good.
7. No advertisement activities are performed.
8. Workers are recruited through employment exchange, Kerala PSC and direct
recruitment.
9. KEL follows three shifts systems.
10. It is an ISO 9001:2000 company.
11. Kundara unit is on the path of Modernization
12. KEL implements good number of welfare measures to the employees.
13. Emphasizing to Product quality than profit.
14. KEL follows time rate system of wages.
15. Good Employee-Employer relation is maintained in the Organization.
SUGGESTIONS
1. Strict internal auditing along with creative suggestions and close monitory system
. can make continual improvement.
2. Online marketing will help the company to increase their sales.

3. In the era of electric trains, company has to diversify its product range in order to
exist in the market.
4. Introduction of new concept would help the company to reduce the Production
and Maintenance cost.
5. Company should introduce modern management tools in the administration and
strategy formulation.
6. Company should revise the strategies by considering the long term market and
Economic conditions
7. Infra structure to be efficiently maintained and also properly arranged for
convenient working of the employees.
8. The management should conduct meeting with workers weekly or fortnightly to
know about the satisfaction with their working surroundings.
9. Multi skilled employees should be introduced to the organization for the effective
functioning.
CONCLUSION
KEL was established in 1947 in Kerala and is fully owned by state govt. of
Kerala. It is an ISO 9001:2000 certified company. It has been the major supplier of Brush
less alternators for the Indian Railways. It one of the biggest public sector companies in
Kerala. The organizational study in KEL, gave a brief idea about all functional areas of
management. Eight departments are functioning in KEL.All the departments are working
together for achieving their objective.KEL is one of the major public sector company in
the state. Major customer of KEL is Indian Railway. It is an ISO certified company.KEL
adopt modern technology for production and their products are marketed throughout all
India network. Its workforce includes 1250 persons which include 250 qualified and
well-trained professional engineers; KEL is one of the biggest public sector companies in
the State of Kerala with three branches all over the state. KEL came into the field of the
Alternator production by 1970’s .The company is tuned with modern technology.
Products are marketed through all India network marketing and after sales service offices
are located in all metropolitan cities. The major customer of the company is Indian
railways. Being a public sector company KEL has its own limitations. But when we
analyses the organization, through the efficiency of work and the brand name they have
created among their customers as well as competitors their work was more than that of a
private sector company. This is one of the factors that make the organization in the lime
Employees strength of KEL is nearly 400.Their main product is Brushless Alternators,
which is used for lighting and air-conditioning the rail coaches.KEL provides wide range
of facilities to their workers. Even though the company faces some problems in recent
years, the company is now in a profitable path.
BIBLIOGRAPHY
BOOKS
 Kothari C.R , Research Methodology, 2e: wishwa prakashan, New Delhi,1990

 Kotler Philp, Marketing Management Prentice- Hall of India Pvt, Ltd.,2002
JOURNALS
 KEL Annual Report
 Production Manual
WEBSITE
www.kel.co.in
APPENDIX
 ABBREVIATION
1. KEL - Kerala Electrical and Allied Engineering Company Limited

2. USP - Unique Selling Proportion
3. DA - Dearness Allowance
4. DC - Direct Cost
5. HOD - Head of the department

6. VAT - Value Added Tax
7. KPSC - Kerala public Service Communication
8. GRN - Goods Received Notes
9. R& D - Research and Development
10. P/L - Profit and Loss account
11. FGTN - Finished Goods Transfer Notes
12. PR - Purchase Return
13. MKTG - Marketing
14. AS&S - After Sales &Service
15. AM - Assistant Manager
16. CH - Charge Hand
17. SW - Skilled Worker
18. USW - Unskilled Workers
19. SI - Security Inspector
20. JO - Junior Officer
21. QAD - Quality Assurance Department
22. AAO - Assistant Account Officer
23. FY - Foundry
24. P&A - Personal & Administration
25. D&D - Design & Development
26. F&A - Finance &Accounts
 BALANCE SHEET OF 2012-11, 2011-10 & 2010-09
Note As at 31st March As at 31st March

Paticulars No 2012(Amt) 2011(Amt)
A. Equity & Liabilities

1.Share holders fund
a) Share capital 1 871,480770 871,480770
b) Reseve & surplus 2 (1,030,503,021) (967,674,141)
c) Money received against share
warrants _ _ _

(1159,022,251) (96,193,371)
2. Share application money pending _ _ _
allotment
3. Non-current liabilities
a) Long-term borrowings 3 90,288,844 80729,378
b) Deferred tax liabilities _ _ _
c) Other long-term liabilities 4 10,811,884 12,748,519
d) Long-term provisions 5 109,852,026 103,167,228
210,952,754 196,645,125
4.Current Liabilities
a) Short-term borrowing 6 43,281,823 227,449,394
b) Trade payables 7 109,076,258 171,264,967
c) Other current liabilities 8 374,358,927 438,106,424
d) Short-term provisions 9 5,781,699 35,161,307
Total 732,498,707 871,982,092
B. Assets 784,429,210 972,433,846

1. Non-current assets
a. Fixed assets
i. Tangible assets 10 35,268,737 38,910,272
ii. Intangible assets _ _
iii. Capital work in progress
iv. Intangible assets under 10A 35,067,444 35067444
development _ _
70336,181 73,977,716
b. Non-current investment
c. Deferred tax asset 11 55000 55000
d. Long-term loans & advances _ _ _
e. Other non-current assets 12 19,367,748 39,985,837
13 648,271 648,271
90,407,200 114,666,824
Schedul As on 31-3- As on 31-3-

e no 2011(Rs) 2010(Rs)
I. Source of funds
1.Shareholders fund
a) Shareholders fund A 871480770 713780770
b) Reserve and Surplus B 1567828 1567828
2.Loan Fund
a) Secured Loans C 158643943 234886031
b) Unsecured Loans D 274889836 314143151
Total 1306582377 1264377780

II. Application of fund

1.Fixed Assets
a) Gross Block E 120384768 295541368
b) Depreciation 81474496 240323933
c) Net block 38910272 55217435
d) Capital work in progress F 35067444 35067444
73977716 90284879
2.Investment G 55000 50000

3.Current asset, loans and advances H
a) Inventories 195211233 183874018
b) Sundry debtors 606195606 410333034
c) Cash and Bank balance 17561604 16069425
d) Loans and Advances 81019443 72248640
899987886 682525117
Less: Current liability and provisions I 3

a) Liabilities 491942446 70092698
b) Provisions 144737748 92550142
Net Current Assets 263307692 219882277
P|L account 969241969 954160624
Total 1306582377 12643377780
Schedu As on 31-3- As on 31-3-

le no 2010(Rs) 2009(Rs)
I. Source of funds
1.Shareholders fund
a) Shareholders fund A 713780770 713780770
b) Reserve and Surplus B 1567828 1567828
2.Loan Fund
a) Secured Loans C 234886031 218805765
b) Unsecured Loans D 314143151 300457751

Total 1264377780 1234612120
II. Application of fund

1.Fixed Assets
a) Gross Block E 295541368 266029893
b) Depreciation 240323933 232780391
c) Net block 55217435 33249502
d) Capital work in progress F 35067444 6023791
90284879 902848879
2.Investment G 50000 50000

3.Current asset, loans and advances H
b) Inventories 183874018 197376554
c) Sundry debtors 410333034 372712452
d) Cash and Bank balance 16069425 13919504
e) Loans and Advances 72248640 48659362
682525117 632667872
Less: Current liability and provisions I

a) Liabilities 370092698 340348652
b) Provisions 92550142 84669373
Net Current Assets 219882277 207649847
P|L account 954160624 933424830
Total 12643377780 1234612120

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AN ORGANIZATION STUDY AT KEL

Thus studying this various aspects of organization is great benefit to

1.2 OBJECTIVES OF THE STUDY

Some of the objectives of conducting the organization study is as follows:

• To study about the organization structure.

• To understand about the function of various department.

• To know the financial position of an organization.

• To identify the strength , weakness, opportunities and threat faced by the

Institute of Management in Kerala, Kundara 1

• To understand the different business operations carried out in the

 To conduct SWOT and Porter’s five for analyzing competitive strategies.

 To relate theories and concepts in to practical and their by to identify and

In this organization study the role of primary data is important.

In this study the primary data sources are:

• Discussion with the department heads.

Institute of Management in Kerala, Kundara 2

• Personal interaction with workers in the company.

In this organization study the secondary data is very important than

1.4 SCOPE OF THE STUDY

 It helps to analyses how well the organization performed its activities.

 Organization study mainly deals with the environmental analysis of the

Institute of Management in Kerala, Kundara 3

 Possibility of biased information.

In an organization there is a chance of giving biased information from the

CHAPTER 2 deals with the industry profile.

CHAPTER 5 deals with the objective wise analysis of the study.

Institute of Management in Kerala, Kundara 4

CHAPTER 7 deals with findings, suggestions and conclusions

2.1 INDUSTRIAL PROFILE

2.1.1 ELECTRICAL INDUSTRY

The energy is neither be created nor be destroyed but it can be

Institute of Management in Kerala, Kundara 5

The electrical power is generated in bulk at the generating stations

In many countries electric power companies own the whole

2.2 WORLD SCENARIO

Although electricity has been known to be produced as a result of

Institute of Management in Kerala, Kundara 6

The world’s first public electricity supply was provided in late

Tesla’s alternating current system remains the primary means of

2.3 INDIAN SCENARIO

Institute of Management in Kerala, Kundara 7

The industry has also established a strong manufacturing base to

2.4 STATE SCENARIO

The first public sector electrical equipment industry setup in Kerala

• Metropolitan Engineering Company Ltd

Institute of Management in Kerala, Kundara 8

• United Electricals Ltd.

• Kerala Electrical & Allied Company Ltd.

• Kerala State Electronics Development Corporation Ltd.

Table No: 2.1

No Company Name Products

3.1 COMPANY PROFILE

The Kerala Electrical & Allied Engineering Co. Ltd., popularly

The company manufactures and markets products like general

Institute of Management in Kerala, Kundara 9

The company's all-India marketing network with regional offices in

Kerala Electrical And Allied Engineering Company Limited

Institute of Management in Kerala, Kundara 10

3.2 CORPORATE PROFILE

The corporate office of KEL is located at Kochi. In addition to

3.3 MANUFACTURING UNITS

 Kundara unit, Kollam (dist), Inception: 1964