Professional Documents
Culture Documents
Kel Os
Kel Os
CHAPTER-1
INTRODUCTION
INTRODUCTION
KERALA ELECTRICAL AND ALLIED ENGINEERING COMPANY
LIMITED (KEL) Mamala Unit has a vital share in manufacturing the “Distribution
Transformers” in the market. The electricity is an inevitable factor in the modern
world. The distribution transformers help to improve the voltage capacity when the
electricity is being distributed. KEL produces these distribution transformers for
various electricity boards all over India. KEL has secured 70% of the market in
Kerala alone. With foreign collaboration, KEL facilitates the modern technology for
producing high quality transformers.
The KEL Mamala Unit has two production divisions, namely, Transformer
Division and Structural Division.
The transformer division has been manufacturing the distribution and medium
power transformers. KEL is the largest manufacturers of distribution transformers.
The capacity of distribution and medium power transformers is up to 3000 KVA, 33
KV class with an annual production capacity of 600000 KVA. National Test House,
various State Electricity Boards and Power Corporations in India have approved the
transformers.
Observation
By observing the general environment and day to day operations of the
company, many data related to the company were collected.
Interview
Another method used for collecting the primary data is personal interview with
the managers and other staff of different departments.
1.4 CHAPTERISATION
CHAPTER 1
The first chapter is the introductory chapter and includes the objectives of
the study, scope of the study, methodology, limitations of the study and chapter
scheme.
CHAPTER 2
The second chapter is about the industrial profile. This chapter include the
world, Indian, and state scenario of the industry.
CHAPTER 3
The third chapter is about the Company profile and it includes business
history, competitors, company vision and mission, product profile and organisation
structure.
CHAPTER 4
The fourth chapter describes departmental details and this chapter includes
each Department‟s Structure, Functions, Procedures and Policies and Programmes.
CHAPTER 5
The fifth chapter includes the strength, Weakness, opportunities and Threat
of the company.
CHAPTER 6
CHAPTER 7
CHAPTER 8
More attention has been taken for analysis but they are subjected to
certain limitations also. The main limitations of the study are
The time of the study is one of the major limitations. It has only two weeks,
which was not sufficient in Study deeply.
CHAPTER-2
INDUSTRY PROFILE
Transformers
World scenario
One of the most important developments in the global economy in the past
half century is the enormous growth in world trade. The growth of the trade share of
output is probably the most commonly used piece of evidence to illustrate the
increasingly globalize world economy. This growth has been dramatic, averaging 3 %
per year for past 50 years. In the time period first focus on 1962-99 the merchandise
export share of output tripled. The common wisdom about the cause of this growth
focuses on the worldwide reductions in trade barriers brought about by several GATT
agreements.
Indian scenario
The present buoyancy in Indian economy would create demand for the
electrical product through industrial growth and general economic development. The
power sector reforms will create large business for power sector equipment
manufacturers and service providers. In the current favourable scenario, the electrical
industry certainly looks forward to growth. India has a field-proven technology and
capacity to manufacture a wide range of power transformers, distribution transformers
and other types of special transformers. For welding, traction, furnace etc. Today,
about 95% of the transformers installed in the Indian Power Network are of
indigenous origin. Energy efficient transformers with low losses and low noise levels
can be available to meet international requirements. The Indian transmission sector
has evolved over time mainly on account of improvements in technology and systems.
The power sector reforms are on a threshold of major changes that would shape the
future of industry. The increased thrust on providing power for all through building
additional generation capacities, improving transmission and distribution network
would lead to a huge demand for power equipment manufacturers.
ABB
BHEL
Bharat Bijlee
EMCO
Vijay Electricals
Crompton Greaves
Areva T&D India
Indo Tech Transformers limited
State scenario
equipments for the Industries and other commercial establishments. The products
manufactured are Cast Resin Transformers, Unitized Sub Stations, Load Break switch
Metering Panels, Epoxy Current Transformers, Potential Transformers and epoxy
molded components. The company has a rich heritage of 25 years and is a leading
brand in the Kerala Market. The products are manufactured under stringent quality
control standards. To diversify the product range, the promoters are putting up the
second manufacturing unit at Aluva, Cochin, Kerala, India. To cater to the ever
growing demand in other markets an additional Greenfield plant is being established
in Tumkur, Karnataka. All the leading construction groups and factories are the
esteemed clients of Intrans.
Resi Tech has been in the activity of manufacturing Epoxy resin cast switch gear
components, Hi-tension current transformer and potential transformers for more than
20 years and has been enjoying a good reputation among the electrical consultancy,
contractors, and industrial establishments. The products manufactured are of high
standards and quality and well accepted in the market. The factory is well equipped
with the latest machineries vacuum oven material handling facilities to manufacture
the above products.
Current scenario
The Rs55bn Indian transformer industry will benefit from the strong demand
expected from reforms in the power sector. We expect the industry to witness a
CAGR of 30% plus in value terms over the next five years against approximately 17%
CAGR in the past three years. Improved realizations and higher volumes will largely
drive this growth. The government intends to add massive capacity to the generation
side and create a National Grid for distribution of this power, both of which should
boost demand for transformers. The funding issues for the same have been taken care
by the World Bank (WB) and Asian Development Bank (ADB).
Annual demand of about 122,679MVA expected for the next five years
The country‟s installed base for transformers stands at 759,240MVA per annum (till
2004 – Source: CMIE). There are about 20 players in the organized segment with nine
of them controlling about 60% of it. Installed annual capacity of these nine players
will stand at approximately 105,154MVA by end of FY07. Demand for the equipment
is expected to remain robust with the XIth Five Year Plan targeting an addition of
about 68,000MW to the existing generating capacity. Assuming the historical
achievement rate of 60%, we expect 61,050MW of additional generating capacity
coming up over the next five years.
Coupled with this, demand will also stem from the replacement market where
transformers installed 25-30 years ago will have exceeded the expected life span. In
addition, exports to countries where power reforms are underway i.e. Africa and
Middle East provide growth opportunity. Also, huge industrial capex lined up in
power intensive industries i.e. oil and gas, metals and cement act as a booster.
CHAPTER-3
COMPANY PROFILE
3.1 HISTORY
The Kerala Electricals and Allied Engineering Company Limited (KEL) were
established in 1964 in the state of Kerala, India. It is fully owned by the State
Government. The corporate office of the KEL is situated at Panampilly Nagar,
Cochin. The company has a wide range of network of regional offices and service
centres located in most of the major cities and business centres in India for effective
marketing and to provide efficient after sales service for the product. The major
regional offices and service centres are at New Delhi, Mumbai, Chennai, Bangalore,
Hyderabad, Cochin and Thiruvananthapuram.
The company has four manufacturing unit located in various Districts of the state,
1. The first plant, Kundara plant in Kollam District, started its operation
in the year 1964. It manufactures the inductor type brushless
alternators which has been widely acclaimed and accepted by many
railway systems around the world. More than 20000 such alternators in
operations with the Indian Railways alone.
2. The second plant start began operation in 1968 at Mamala in
Ernakulum District with the manufacture of distribution transformers
of various capacities.
3. Medium level transformers and distribution transformers- up to 3000
KVA, 33 KV class with an annual production capacity of 600000
KVA.
The KEL has a well organized Research and Development wing. All R&D
activities are coordinated from corporate office, Cochin. The R&D wing of KEL has
to its credit many special application generators and other products that were
indigenously designed and developed. Ground Power Unit for Avro and Dornier
Aircrafts 400 Hz alternators of various capacities, brushless alternators for use in
automobiles replacing the DC dynamos and conventional alternators for use in
automobiles replacing the DC dynamos and conventional alternators are some of the
achievements of the company‟s R&D wing.
MISSION
VISION
MARKET POTENTIAL
In all India level KEL contributes 2% need when its production is 100%. In
the Kerala level KEL‟s market potentiality is around 35 to 40% of the market
requirement.
The company has two divisions, which are Transformer Division and
Structural Division.
1. TRANSFORMER DIVISION
The transformer division went on stream in 1968.it has been able to carry a
niche for itself in the manufacture of Medium Power Transformer and Distribution
Transformers of rating up to 3000 KVA and up to 33KV class.
The dual ratio transformer developed by the division has proved that its ability
in capacity of product and winner in the market. Versatility is its fortune. It is
adaptable to the interchangeable voltage classes, the equipment has found ready
acceptance in the market.
Utilized substation is another much sought after product evolved by the R&D
wing and translated into a roaring success. Integrated and self-contained, the unitized
substation saves in terms of space, cabling and installation expenses as well.
Transformers from this division come with more special and unique features. On
Load tap changers coupled with Automatic Voltage Regulators and Remote Tap
Charger Control Cubicle yet another of them. Incorporation of these features has
helped to ensure a steady secondary voltage supply. Fluctuations in voltage need not
be a matter of concern any more. Voltage drops up to 35% are easily taken care of by
these transformers equipped with O.C.T.C that too with seventeen different tap ratios
opt for.
These transformers have been found indispensable where continuous industrial
processing involved and where uninterrupted power supply is to explicitly maintain.
The innovative ideas from the Transformers divisions are backed up by a
resourceful R&D team helped into small measure by the Design Department. The
2. STRUCTURAL DIVISION
The Structural Fabrication shop was set up in 1967 with an installed capacity
of 1200 MT per annum. The main products handled by the division, which caters to
the heavy fabrication sector are:
Hydraulic control gate and hoists for Power generation/irrigation
projects of State Electricity Board/State Irrigation Department.
Industrial building structures, Transmission Towers, Switch Yard
structures etc.
Pressure vessels, process equipment, storage tanks and piping etc.
MAMALA UNIT
GENERAL MANAGER
MAMALA
ASST. ENGR
REPAIR
FORE-
MAN
GENERAL MANAGER
(S-DIV)
MANAGER
DESIGN
FOREMAN J.O
COMP
CHAPTER-4
FUNCTIONAL AREAS OF ORGANISATION
Policy
Objectives
The Material Department ensures that good quality materials are purchased at
reasonable price. The company has an ideal material control system. KEL follows the
ABC analysis for the control of materials. 'A' items are very important, because of the
high value and frequent value analysis are required to avoid excess capacity. ‟B‟ items
(intergroup items) are less important than „A‟ items. „C‟ value items are those which
require minimum control maintained at the minimum stock level.
Functions of Manager
i. Issue of materials.
ii. Counting/weighing of material received/issued.
Functions of Clerk
Purchase procedure
Material purchase
authority in relation to value, where required the authorization obtained from the
corporate office through Purchase Approval Form.
9. The particulars of purchase committee approval are maintained in the Purchase
Committee Approval Register.
10. On finalizing purchase on the basis of guidelines/authorization, purchase order is
raised and purchasing data is verified for their correctness by the designed
personnel in the department.
11. A purchase order check list is prepared in evidence of verifying the purchasing
data.
12. The purchase order is made in 6 copies. The copies are made available to
Material, Quality Assurance, and Finance and Accounts Department. Two copies
are for retention with Maintenance and Structural division.
13. The purchasing activities such as release of purchase orders, progress in supply
of products and results of receiving verification are recorded and monitored with
the aid of Purchase Monitoring Register for all purchase made in the structural
divisions and for purchase of lamination, conductor and radiator and current
Transformer Division.
14. The purchase order is raised in respect of purchase against already made
authorization.
15. Cash purchases are made without raising Purchase Orders, limiting value to
Rs.5000 on approval of requisition cash purchases by materials.
16. Purchases by sub contracting process are made on the basis of quality
specification.
17. Verification of sub contracted jobs items are carried out by the sub contractor‟s
premises where so required.
18. The verification of purchased product is carried out as per quality specification
and work instructions. When required contractually, customer is provided facility
to verify purchased product at sub contractor‟s premises or company premises.
19. The purchase order released to sub-contractors clarify verification requirement
either of Quality Assurance or customer or customer‟s agents. It is also clarified
to sub contractor that verification by Quality Assurance/customer doesn‟t absolve
the sub-contractor of his responsibility to provide acceptable product as well as
company‟s right and further verify products even after acceptance on receiving
inspection and testing. Where purchase order is required to be amended, either a
17. Items held in storage for more than the specified period are subjected to re-
inspection and testing as per work instructions for re-testing of stored products
prepared by materials.
18. The preservation of product in storage is achieved by specifying appropriate
controls and application of preservation as documented by Quality Assurance
issues of stored items to the user departments/sub-contracted production is made
against stores requisition/loan rate.
19. The expiry date, where applicable is verified prior to issue.
20. The quality of Transformer oil held in tanks is assessed referring
KARDEX/Stock and Issue Register.
21. Excess quality returns to the stores by used departments are accompanied with
Store Return Note, for accounting in the KARDEX.
22. Items taken out for processes are returned and controlled with returnable gate
pass/gate pass for lob work.
23. Where stock is held in stores below the minimum/re-order level, purchase
activities are initiated by stores in charge.
24. A monthly inventory statement is prepared and sent to
Planning/Production/Finance and Account.
25. The activities of handling, storage, identification, control of non-conforming
products and issue of materials under positive recall procedure are carried out as
per work instruction
1. Purchase Requisition
2. Purchase Notice
3. Purchase Order
4. Purchase Order Checklist
5. Purchase Order Amendments
6. Purchase Approval Form
7. Cash Purchase Approval Register
8. Purchase Committee Approval Register
9. Purchase Monitoring Register
GENERAL MANAGER
DGM-MATERIALS
Asst. Eng.
Subcon.
INFERNCE
The stores department in the organization always keep the required amount of
raw materials for production. There is no excess investment in stock. Fully
computerized record keeping is maintained in this department.
PRODUCTION DEPARTMENT
The KEL Mamala has one production department. It holds two department
section, which are Planning section and Quality Assurance section. The company has
two production units which are
2. Structural unit
PLANNING SECTION
Planning section holds the responsibility of planning about the product at their
different stage of manufacturing. Planning can be generally made from marketing and
design department. The design department designs the stages of production. The
materials department provided the materials for production in connection with sales
order from marketing department. Thus the production of transformer is done in a
highly planned method.
“To plan, to organize and to coordinate the activities, to achieve the targeted
production, within the time frame to the needs of the organization”.
Environment Policy
Prevention of pollution
Effective utilization of resources to reduce wastage
Abide by the environmental laws and regulations
Continual improvement of environmental performance
“To establish and maintain a quality system which will ensure incoming
materials, in process sub-assemblies and finished products conforming to the
specification.”
FUNCTIONAL OBJECTIVES
STRUCTURE
MGR QA
ASST. MGR
CHARGE IN
HAND
SUPERVISORS
1) Manager
Identifying resources for inspection and testing
Planning requirements for quality
Planning requirements for inspection and measurement
Calibration monitoring, corrective and preventive action
Statistical techniques
Propose approval of sub-contractors
Audit production sub contractors
Carry out subcontractor performance evaluation
Identifying non conforming products
Stop further processing of in process non conforming products
Release products to customers
2) Assistant Manager
Accept and sign Goods Received Note for goods conforming to
specification
Issue non conforming reports
Sign observation sheets and test certificates
Sign and issue assembly inspection reported and consigned report
3) Charge in Hand/ Supervisor
Incoming materials inspection as per quality plan
In process inspection at the specified Quality Assurance Check points
Final testing of transformer
Conducting consigned audit reports
ISO CERTIFICATION
Refer Goods received note in respect of received products as a call for receiving
inspection and testing.
Inspection and test requisition is received from materials stores in respect of
materials held in store for more than the specified shelf life.
On the basis of Goods Received Note requisition, sampling and testing of specific
materials are carried out by personnel as assigned by Quality Assurance.
The responsible assigned person drawn samples and carries out testing as per
work instruction.
The extent and nature of receiving inspection and testing is determined on the
basis of the class of sub-contractors and availability of test certificates.
The result of inspection and testing are recorded in Incoming Inspection report.
The sample sizes characterize to be verified and acceptance criteria adopted as
per Quality Assurance personnel endorses the results on Goods Received
note/Requisition.
In case results do not conform to requirements a product non-conformity record is
revised in triplicate and 2 copies forwarded to material stores.
If required General Manager as per assigned authority at the instance of material
stores reviews the nature of non-conformity and permits deviation by endorsing
accepted on the Product non-conformity Record.
If deviation is not permitted, REJECTED status is assigned and Rejection Note
sends to the sub-contractor with a copy to Finance and Accounts Departments.
The customer supplied products are subjected to receiving inspection and testing
in the same manner as above unsuitable products are returned to customer under
intimation.
Materials held in storage beyond specified shelf life are re-inspected and tested as
per work instructions.
A. TRANSFORMER DIVISION
PLANNING PROCEDURE
On the basis of the running contracts in hand and orders received, planning
Transformer Division Department prepares a tentative production plan for each
month on the basis of priority identified and discussed with General Manager
indicating production planned cost and due date of delivery in respect of each
project. Copies of each plan are made available to GM, Finance and Accounts
Department, Production Transformer Division Department, Materials Department
and Design Department.
On receipt of sale order copy relating to new orders, production plan revise for
the month is prepared indicating material quantity and their value copies of the
revised monthly plan are made available by the authorities.
On receipt of bill of materials (advance information) and drawings from design
purchase requisition is prepared as a measure of advance material planning and
copy provided to material department. Purchase Requisition follow up Register
monitors the flow of purchase.
Based on the sale order drawings and bills of materials, work order is prepared
indicating particulars of customer sale order number, drawing references
operations and work to be completed.
The issue of work order is controlled with the aid of Work Order Issue Register.
Work order amendments based on material change or other deviations will clear
by design department and issued where required and copies distributed.
Issue of drawings to shop floor and sub-contract is co-ordinate and controlled by
planning with aid of Drawing Issue Register.
Core Building
In this stage the frame is cut in the shape of „E‟. Silicon steel is cutting with
the E shape for frame fabrication.
LV winding
Here also conductors are used. Low voltage coil are wound with double paper
grade strip. This strip reduces the possibility of short circuit. This coil consists of low
voltage electricity which comes from outside. In real process the IXth stage is core
coil assembly. The core assembly, HV winding and LV winding are assembled in this
stage.
Terminal Gear Mounting
The LV winding terminals are fixed in to a bush. The terminal gear is built
with copper or aluminium.
Tanking
The fabrication tank has been made available through sub-contract or
manufacturing the structural unit. The dried TG mounted coils are put in the tank.
Then the tank has to be filled with oil. Then tightening take place.
Final Testing
When the production process is completed, final test conducted by company
supervisor.
The final stage is painting and dispatching the transformer. Sometimes, in this
stage customer can also inspect the transformer. After the payment is made by the
customer, dispatching the transformer is done as the specification of the tender.
WINDING
CONDUCTOR
LAMINATION
INSULATION
WINDING
CORE BUILDING CUTTING
END FRAME
FABRICATION ASSEMBLY
INITIAL DRYING
REBLADING
QA CHECK
TERMINAL GEAR
MOUUNTING
QA CHECK
FINAL DRYING
TANKING TANK
FINAL TESTING
PAINTING
DESPATCH
PRODUCTION INFRASTRUCTURE
Procedure
1. On the basis of production plan for the month initially provided and update from
time to time from by Planning Transformer Division based on work orders
provided.
2. The materials required for the production held in material stores are drawn by
producing the Stores Requisition against work order.
3. The wage of loading of materials and sequence of production operation are
carried out as specified in the process sheets/assembly checked sheet.
4. Operations of machine/production process including settings and first of approval
are controlled with the work instructions and by utilizing personnel of required
skills.
5. Updated master list of personnel with specialized skill are approved by Planning
Transformer Division are maintained by Production Transformer Division.
6. Production and labor allocation sheets duplicate are prepared and issue shift wise
daily to assign qualified personnel in relation to process.
7. Drawings/specifications based on the work order are drawn from design and
referenced during process:. Application codes and standards are referenced and
followed.
8. The particulars of shift production are recorded in the production and labor form,
indicating the operator, operation carried out and the production output including
labor time. A copy of the form is forwarded to Planning Transformer Division for
monitoring productivity.
9. Stages for in-process inspection and tests are identified and carried out by Quality
Assurance against assembly check sheet inspection and test status is assigned.
10. Daily production details are recorded in a daily finished goods register indicating
work order wise production figures.
11. Details of monthly production at various stages are recorded in production
program for taking corrective action to maintain production.
12. On completion of final assembly testing and painting and on receipt of dispatch
advice from Transformer Marketing, products are dispatched by preparing the
delivery chelan.
13. Dispatches are accounted and monitored through a Dispatch Register indicating
customers‟ name of work order, data and mode of dispatching items authorized
by Quality Assurance are dispatched.
14. Achievements of dispatches are received against plans short falls if any analyzed
for corrective and preventive action.
B. STRUCTURAL DIVISION
PLANNING PROCEDURE
On the basis of running project or hand planning structured document budgetary
plan for the year indicating project wise materials and their value for information
of GM and Design manager.
A tentative production plan is raised in each quarter on the basis of priority
identified and discussed with GM. Planning Structural Division made a plan
indicating months production are planned, cost and find requirement in respect of
each project copies of plan are made available to GM, Finance and Accounts
Department, Planning-structural Division and Stores Department.
On receipt of sale order copy relating to new projects, production plan for the
month is prepared indicating material quantity and the value.
On receipt of bill of materials and drawings from design department, Purchase
Requisition is prepared as a measure of advance material planning and copy is
provided to monitoring through a Purchase Requisition follow up Register.
On the basis of sale order, drawings and bill of material and work order is
prepared indicating particulars of customer sale order no:, Drawing reference,
operation and work to be completed. The reverse site of that work order provides
facility for production of raw materials from time to time.
The issuance of work order is contracted with the width of work order Register.
Work order amendments on the basis of material change or other deviations as
clearly by design.
At the close of each week, a weekly production report is prepared and copies
made to planning structural division and Finance and Accounts Department for
monitoring.
For the purpose of facilitating the financial audit a Register titled Production for
the month is prepared by Planning Structural Division, that production
information on project use total, quantity and value..
Planning Structural Division documents order position is taken for the whole year
in a register. Monthly chart is also prepared for comparative statistical projection
of varieties in achievements during different of year.
Short falls in achievements again analyzed and inputs provided for corrective and
preventive action by Planning Structural Division.
In this division, there are several machines. In each machine one gang is
working. One gang contains three workers. These three workers are controlled by one
charge in hand. A gang involves one welder, one fitter and one unskilled worker.
POLICY
“To derive customer satisfaction through proper planning, manufacturing,
installation and commissioning as per specification”
Process
a) Marking
b) Cutting
c) Drilling
d) Bending
e) Setting
f) Welding
g) Surface preparation
h) Straightening
i) Painting
j) keeping
MATERIAL MARKING
PREPARATION
CUTING
STRAIGHTENING
ASSEMBLY SETTING
WELDING
MACHINING
CLEANING AND
PAINTING
INSPECTI-
ON
DESPATCH
Production procedure
1. On the basis of production plan for the month initially provided and update from
time to time from by Planning Transformer Division based on work orders
provided.
2. The materials required for the production held in material stores are drawn by
producing the Stores Requisition against work order.
3. The wage of loading of materials and sequence of production operation are
carried out as specified in the process sheets/assembly checked sheet.
4. Operations of machine/production process including settings and first of approval
are controlled with the work instructions and by utilizing personnel of required
skills.
5. Updated master list of personnel with specialized skill are approved by Planning
Transformer Division are maintained by Production Transformer Division.
6. Production and labor allocation sheets duplicate are prepared and issue shift wise
daily to assign qualified personnel in relation to process.
7. Drawings/specifications based on the work order are drawn from design and
referenced during process:. Application codes and standards are referenced and
followed.
8. The particulars of shift production are recorded in the production and labor form,
indicating the operator, operation carried out and the production output including
labor time. A copy of the form is forwarded to Planning Transformer Division for
monitoring productivity.
9. Stages for in-process inspection and tests are identified and carried out by Quality
Assurance against assembly check sheet inspection and test status is assigned.
10. Daily production details are recorded in a daily finished goods register indicating
work order wise production figures.
11. Details of monthly production at various stages are recorded in production
program for taking corrective action to maintain production.
12. On completion of final assembly testing and painting and on receipt of dispatch
advice from Transformer Marketing, products are dispatched by preparing the
delivery chelan.
13. Dispatches are accounted and monitored through a Dispatch Register indicating
customers‟ name of work order, data and mode of dispatching items authorized
by Quality Assurance are dispatched.
14. On the basis of customer specified installation plan indicating the date by which
materials including tools and tackles for different stages of erection should reach
the site.
15. Copies of the plan are to planning Structural Division, Design Department and
Material Department.
16. The tentative installation plan is received at intervals of 6 months the plan
updated.
17. The site requirements are identified and documented by planning Structural
Division as site requirement document. The document is reviewed and approved.
18. The site required document indicate size of temporary structures, manpower tools
and tackles, consumables and sub-contracted workmen/ security personnel
required for installation at different frame.
19. Actual movement of tools, tackles and materials for installation is commenced on
receipt of confirmation from material stores department about the civil work
completion and clearance from customer for commencement of installation work.
20. The materials held at site are adequately protected from deterioration, properly
stored and their stock issue is controlled by the site personnel designated by
Production Structural Division.
21. Handlings of materials at site are done using validated equipments and observing
safety requirements.
22. Site status report is prepared by site engineer and forwarded to Production
Structural Division and Material Stores.
23. Installation at each stage is controlled with the aid of installed check sheets.
24. On completion of installation the structure is handed over to customer only after
joint inspection by customer designated person/ agency and by site engineer.
GENERAL MANAGER
FOREMAN FOREMAN
WORKERS WORKERS
INFERENCE
The works in the factory include both skilled and semi- skilled workers.
Proper supervision is done for producing quality products and also to reduce wastage
of materials
DESIGN DEPARTMENT
1) General Manager
3) Junior Officer
DESIGN PROCESS
Study the specifications of the product included in specific tender received from
the marketing department.
Obtain current price of raw materials and components from material department.
Make estimates for the product as per the technical specification furnished by the
marketing department.
Send the cost and guaranteed technical specifications to the marketing department
for tendering purposes.
GENERAL MANGER
Asst.MGR Quality
J.O Com.
INFERENCE
Policies
This procedure covers and action training on the job training, training
required for qualifying for process /safe operations, developmental training for job
rotation and enlargement/ awareness of new concepts, quality management and
quality system techniques, behavioral training and retraining in all these area due to
changes in process technology/systems/strategies.
Functions of department
Functions of Manager
Clerk
Recruitment
The company has different methods for recruitment. The main sources are:
1. Advertisement
The major recruitment is done through the advertisement. The advertisements
are given in local or national press, trade or professional journals. The recruitment of
the job is given in the advertisement. Management gets a wider range of candidates
for selection through the advertisement.
2. Employment exchange
The company has also recruited employees through this method. The
vacancies may be noticed with the exchange, whenever there is a need. The exchange
supplies a list of candidate fulfilling required qualification.
4. Trade unions
The KEL Mamala has also recruited employees and staff through the mutual
agreement between the trade union and management. There are three recognized
unions in KEL, they are KEL Employee Congress, KEL Employees Union and KEL
Employee Association.
Selection
Training
“Training is the act of increasing the knowledge and skill of an employee for
doing a particular job”. In KEL Mamala two types of training are given to employees
Transfer
The selected staff can be transferred to different units, where the staff is
needed. The transfer does not involve any change in rank. It involves shifting of
persons from the present jobs to other similar places or different places in the same
job. This does not involve any change in responsibility and prestige. Transfer and
promotion are dealt by the head office. Transferred promotions are done on the basis
of the mutual agreement between the union and management. Transfer and promotion
will be made against vacant posts whenever suitable candidates with the prescribed
qualification and experience are available within the organization. But when the
suitable candidates are not available, then the post will be filled up from the external
source. While offering promotion to higher post, reservations are made for SC/ST.
Promotion
no type of performance appraisal system for employees at lower levels. Officers are
given promotions according to the promotion policy rather than performance.
Shift timings
i. Administration Staff
On week days- 9.30 AM – 4.30PM
On Saturdays 9.30 AM – 12.30PM
ii. Employees in the production department
On week days 12.30 AM - 8.30AM
8.00AM - 4.30PM
4.30 PM - 12.30AM
On Saturdays
8.00AM – 1.00 PM
1.00 PM – 4.30 PM
i. Warning
ii. Stoppage of increment
iii. Withheld of future promotion or grade
iv. Discharge from the service
v. Dismissal
A charge sheet will be given to the employee concerned and he will be asked
to give his explanation in case of alleged misconduct primafacie appears to be of a
serious nature, suspension pending enquiry. In other case the management will decide
whether a formal enquiry should be conducted, and if the decision is for an enquiry it
will be conducted. The management on receipt of the explanation, issue notice to the
receipt or in the absence of the reply or the expiry of the date by which the reply is
called for, the management will pass suitable orders.
This process will be applicable only in cases were punishments are either
reduction of rank, removal, or dismissal. In other cases, the management shall pass
such orders which may be appropriate on receipt of the employee‟s explanation.
Manpower
The company has 101 skilled workers, 52 semi skilled workers, 12 special skilled
workers. Staff and security are 44 and 43 managerial persons as on 31st march 2011.
GENERAL MANAGER
DGM P & A
J.O(Leg.) J.O
INFERENCE
i. Auditing and finalization of works with the assistance of all other members of
finance department.
ii. All the accounts relating to personal.
iii. Accounting of purchase bill.
iv. Preparation of payrolls.
v. Accounting of bank and cash transactions
vi. Calculation of central excise
vii. Sales accounting and sales tax matters.
1. Accounting conventions
2. Fixed Assets
Fixed assets are stated at cost less depreciation. Assets and liabilities are
consistently being recorded at historical cost.
3. Depreciation
a. Depreciation on fixed assets has been provided as per the rate indicated
in schedule XIV of the company‟s act 1956 under written down value
method.
b. Extra shift depreciation for double shift working has been provided in
the account.
c. Depreciation on fixed assets in respect to the project work in progress
has not been kept in abeyance as per government direction.
4. Inventories
a. Finished goods are valued at cost or market price, whichever is less for
arriving at the cost and excise duty is also taken into consideration.
b. Work-in-progress is valued at the cost after considering overheads
excluding financial charges.
c. Raw materials, material in progress, spare, stores and loose tolls are
valued at cost, cost means weighted average.
d. Scraps are valued in realizable value.
e. Goods in transit are valued at cost.
5. Sales
a. Sales compromise sale of goods and service and includes Excise duty
b. Price valuation claims on sales affected are accounted for on accrual
basis
The company shall in compliance with sec.209 of the company Act clause to
keep proper books of accounts with respect to:
i. All sums of money received and spent by the company and matters with respect
to which the receipt and expenditure take place.
ii. All sales and purchase of goods by the company
iii. The assets and liabilities of the company.
The finance manger of the company collects funds through the sales of the
product from the head office and other sources. The unit manager has a limit to deal
with the fund, which is limited to Rs. 2000000 over the limit he needs the permission
from the corporate office of the company. Payroll or salary administration is an
inevitable factor of the finance department. The salary administration is conducted in
two ways
In the calculation of basic pay and dearness allowance, the attendance is taken
from the 1st day of the month to 31st of the month. Basic pay is based on the salary
scale of the company. Dearness allowance is an industrial dearness allowance or
variable dearness allowance. It means, DA is changing every month. This change
depends upon the point differs every month and also, it is different to various
companies and different units of the same company. Rs.5 is charged for per point
Over time allowance (OT) is provide to the employees, who undertake the
over time work. For the calculation of overtime, the attendance is taken as the 16 th of
the month to 15th of the next month. Working time per day is 8 hours. The over time
charge is calculated by using the following formulae:
a. Provident fund(PF)
According to the PF Act 1952, the PF contribution is deducted from the gross
salary. Both the employee and the employer pay 4.75% of his wages (i.e. basic pay
and DA). This PF contribution is forwarded to PF department.
b. Employees State Insurance(ESI)
The ESI is contribution scheme, with the employer paying 4.75% of wages
and the employee contribution is 1.75% of wages to the fund. The ESI facility avail
the employees who has the salary up to Rs. 6500 per month. The employee
contribution is 1.755 of the gross salary-washing allowance.
The net salary for employees and clerical staff by way deducting the total
deduction from the gross salary i.e.. Net salary = Gross Salary- total deduction
Department Structure
Asst Manager
Executive finance
INFERENCE
MARKETING DEPARTMENT
POLICY
“To establish and maintain a process and procedure to canvas orders by
identifying customer requirements regarding products and services”
MARKETING PROCESS
The KEL collects the tenders from news paper with specification. After
collecting tenders, KEL prepare tender document. This document will be forwarded to
the design department. The company approves tenders up to 25 lakhs. Above 25
lakhs, the Head Office sanction is required for the tender acceptance. After this, the
unit submits competitive quotation. If the submitted quotation is the best, the
company gets the tender. Then the company issues an order acceptance letter to the
customer. After this, the marketing department prepares a sale order and issues to all
other departments that take part in production. Based on this letter, the design
department prepares structural design and process design of the transformer. The
material department purchases or issue materials to the production floor or to store.
Then the production function is started. At the end of the completion of the
production of transformer, inspection and dispatch functions are carried down.
Sometimes private companies like Tata Tea, Bombay Suburban Electrical Ltd etc,
conduct inspection at the production floor after the completion of the production. The
company provides proper after sales service also.
The company guarantees the product for a period of 12 months from the date
of commissioning or 18 months from the dispatch whichever is earlier. After this
period, the company will provide services on chargeable basis. The company charges
1500 per head for a day.
FUNCTIONAL OBJECTIVES
1. Reduce customer complaints to a minimized level in a phased manner- by 50%
the next 12 months.
2. Reduction in the amendment of sales order or specification by 50% through
proper contract review and imparting customer awareness.
The marketing department of KEL aims to promote its product among
customers, which helps it to obtain substantial sales order. This in turn is
communicated to the production sub system which is concerned with the management
of physical resources for the production of an item or provision of a service.
The KEL is in very good position in the market for manufacturing the product.
The KEL has 36 years of experience in the transformer manufacturing and
distribution activity. KEL is directly connected with customers. KEL concentrates on
the single segment quality of the product and finish the work within the dates
specified in the work order.
MARKETING NETWORK
KEL‟s product are marketed by extensive networks of marketing officials
located in all the major cities like New Delhi , Mumbai, Kolkata, Bangalore etc. They
provide all support services to the sales and marketing services to guarantee complete
customer satisfaction. The KEL has a wide network of regional offices, services and
business centres located in most of the major cities in India for effective marketing
and providing efficient after sales service.
MARKETING DIVISION
The marketing division is attached to the corporate office for the marketing
of various products of the company.
FUNCTIONS PERFORMED BY THE MARKETING MANAGER
Evolve adequate marketing policy.
Ensure the availability of required orders.
Fix competitive prices.
Make sure the payment before dispatching the product.
Provide after sale service to the clients.
Ensure the optimum utilization of resources available to the company.
Communicating with customers.
Coordinating services.
Department structure
INFERENCE
It mainly concentrates on foreign market than domestic market. The
employees in this department make continuous efforts to increase the sales of the
company. The sales of the company shows an increasing trend for the past years
SECURITY DEPARTMENT
Work Environment
Personnel safety
Material in storage or process area are prone to fire are identified specifically and
the type of fire extinguishers needed to deal with these are listed.
Location wise requirements of fire extinguishers are maintained by personnel and
administration.
Fire extinguishers are checked at specified intervals
Fire extinguishers are refilled or replaced when necessary.
GENERAL MANAGER
MANAGER TR
FOREMAN FOREMAN
WORKERS WORKERS
INFERENCE
Security Section stands for ensuring the right for safe guarding the raw
materials, finished goods, machines, etc. They are also responsible for guarding the
main gate and checking the incoming and outgoing vehicles and physical checking of
the workers of the company
CHAPTER-5
SWOT ANALYSIS
SWOT ANALYSIS
STRENGTH
KEL consist of highly qualified personnel.
KEL provide inevitable and valuable services to the society.
Direct control from the part of Kerala Government.
All India network service centre.
It maintains good industrial relations.
It has got good industrial relations.
It has good infrastructural facilities.
It ensures quality of products.
It has 90% market share in Kerala.
WEAKNESS
Modern technology and machines are not adopted.
Adequate control of material is not exercised.
The company has not adopted the new method of accounting.
Lack of qualified personnel.
OPPURTUNITY
It has an opportunity to adopt new technology in production.
It can adopt new method of accounting.
The company can buy quality materials and can maintain an effective
material control.
THREAT
Competition from private enterprises is the major threat to the company.
Financial position of the company is unsatisfactory, although the company is in
profit for past 2 years.
Government regulations and Foreign exchange Fluctuations.
CHAPTER-6
INTRODUCTION
The model of pure competition implies that risk-adjusted rates of return should
be constant across firms and industries. However, numerous economic studies have
affirmed that different industries can sustain different levels of profitability; part of
this difference is explained by industry structure.
Profitable markets that yield high returns will attract new firms. This results in
many new entrants, which eventually will decrease profitability for all firms in the
industry. Unless the entry of new firms can be blocked by incumbents, the abnormal
profit rate will tend towards zero (perfect competition).
Porter's five forces include - three forces from 'horizontal' competition: threat
of substitute products, the threat of established rivals, and the threat of new entrants;
and two forces from 'vertical' competition: the bargaining power of suppliers and the
bargaining power of customers.
KEL ltd has attained economies of scale. The existence of barriers to entry
(patents, rights, etc.) The most attractive segment is one in which entry barriers
are high and exit barriers are low. Few new firms can enter and non-performing
firms can exit easily.
Economies of product differences
Brand equity
Switching costs or sunk costs
Capital requirements
Access to distribution
Customer loyalty to established brands
Absolute cost
Quality depreciation
CHAPTER-7
FINDINGS AND SUGGESTIONS
7.1 FINDINGS
1. The company has good market value for their products.
2. The customers are very much satisfied with the KEL transformers and also they
are loyal to KEL transformers.
3. The customers are very much satisfied with the transformers user friendliness.
4. The company is giving importance to the quality of the product.
5. The company should concentrate more on the timely delivery.
6. The company may try to produce according to the customers‟ expectations.
7. Quality is system effective.
7.2 SUGGESTIONS
1. The company must be more competitive by adopting latest technology.
2. The company should try to fix competitive price by reducing cost of production.
3. It should try to improve employee- employer relationship.
4. Attractive remuneration packages should be implemented which will increase
employee morale and satisfaction.
5. By improving the promotional activities company can attract more
customers.
6. It is better to appoint more professionals in the management.
7. Development of manpower can be improved through by giving more
training programs.
8. To increase the morale of the workers the company can provide sufficient
service awards to their workers periodically.
9. Strict measures can be made to utilize the available resources at its
maximum to overcome the present units and to ensure profitability.
CHAPTER-8
CONCLUSION
8.1 CONCLUSION
The KERALA ELECTRICAL AND ALLIED ENGINEERING COMPANY
LIMITED, MAMALA is doing great to nation by providing very important and
essential equipment to various industrial concerns and various electricity boards in
India. It is worth nothing that KEL has done better services in various fields like
Industrial relation, productivity etc. The experienced management and group directors
are the most precious blessings of this company.
8.2 BIBLIOGRAPHY
1. R.K Sharma, Shashi. K. Gupta: Principles of Management, Kalyani
Publishers, New Delhi.
2. www.kelindia.com
3. Books and Documents from KEL ltd.