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SINTOJ THOMAS
Reg. No. Under the guidance of MR.DAWN JOSE Assistant professor
BONAFIDE CERTIFICATE
This is to certify that this report titled Report on Organization study at Phillips carbon black td is the bonafide work of Mr. Sintoj Thomas. Who carried out the study under my supervision. This report is submitted to Mahatma Gandhi University, Kottayam as partial fulfillment of requirement for the award of degree of Master of Business Administration.
Signature of Principal
1. ------------------------------------------
2. ---------------------------------
DECLARATION
I , Sintoj Thomas hereby declare that the report entitled organization study at Phillips Carbon Black submitted to Mahatma Gandhi University in partial fulfillment of the requirements for the award of the degree of Master of Business Administration is a record of original work done during my period of study in the School of Management, St. Josephs College of Engineering and Technology under the guidance of Mr. Dawn Jose, Asst. professor.
ACKNOWLEDGEMENT
The satisfaction of the successful completion of any task wouldnt be complete without the expression of gratitude to the people who made it possible. This task would have been difficult for me if I had not received the support and encouragement from the people who have helped me from the inception to the completion of this project work.
I would like to express my heartfelt gratitude to Prof. C J Joseph Principal St. Joseph College Of Engineering And Technology and Mr. G M Tharakan, Head of the Department who provided me with all help, co-operation and encouragement to complete my study.
I express my sincere thanks to the faculty guide Mr. Dawn Jose, Asst. Professor for his valuable guidance and support.
I wish to express my sincere gratitude to the authorities of Phillips Carbon Black Ltd. who has been kind enough to permit me to pursue this organization centered study at their esteemed organization. I would like to thank Mr. Babu Abraham, Head of HR Department of PCBL. Who guided me at all stages through this project with plenty of data. Finally I wish to express my heartfelt thanks to all staff of the organization for their suggestions and guidance. I would like to thank God Almighty for being the guiding light in my entire task and being with me throughout this journey.
SINTOJ THOMAS
INDEX
CHAPTERS Chapter-1 Introduction objectives of study scope of the study research methodology limitation of study chapter-2 1 4 4 5 6 Page No.
industry profile competitors details world scenario Indian scenario State scenario
7 12 13 15 17
Chapter-3
Company profile History and Philosophy Product rang of company BCBL Financial performance of the company Organizational structure
19 23 26 29 31
Department details Chapte-4 1-Finance department Structure Function Objectives Financial summary Financial highlights Responsibilities of key person
7
32 33 34 35 36 37
2-Purchase and storage department Department structure Function of purchase and storce department Purchase procedure Responsibilities of store &purchase manager 3 Production Structure of the department Function of the department Objectives of the department Duties and Responsibilities Production process Product identification 4-HR department Structure Functions of HR Roles of HR 4-Maitance and engineering department Structure Objectives Processed followed by Maintains Department 44 45 46 48 49 53 38 39 40 42
54 55 58
60 61 62
6-Warehouse department
Structure Functions
63 64
10
7- Logistics department 8-Environmental department 9-R&D Marketing Captive power plant Chapter-5 SWOT analysis Observation and suggestions Chapter-6 Conclusion Bibliography
65 66 67 69 70
71 72
75 76
LIST OF FIGURES Fig-1,Organizational structure Fig-2, Finance department structure Fig-3, Purchase and stores Fig-4, Production department structure Fig5, Production process Fig-6, HR department structure department Structure Fig-7,Maintenance department structure Fig-8, Warehouse department structure Fig-9,Logistics department structure Fig-10,R & D department structure 31 32 38 44 50 54 60 63 65 67
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.1 INTRODUCTION
An organization is a social arrangement which purpose collective goals, controls its own performance, and has a boundary separating it from its environment. Organizational structure is a mainly hierarchical concept of subordination of entities that collaborate and contribute common aim. . Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambience. The structure of an organization will determine the modes in which it operates and performs. Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambience. The structure of an organization will determine the modes in which it operates and performs.
Philips carbon black has come a long way since its inception in 1960. PCBL started production from December 1962 by oil furnace the most widely accepted manufacturing process of carbon black patented by its then collaborator and world carbon black leader Philips Petroleum Company USA The collaboration ended in 1978. However PCBL continued its progress by virtue of the ingenuity of its technologists, engineers and sustained R&D activities. In 1988 PCBL entered into a technical agreement with Colombian Chemicals Company, USA, and acquired access to modern state of the art carbon black technology. This resulted in company gaining flexibility, product range production capacity and energy conservation.
Carbon Black along with natural rubber accounts for more than 80% of the cost of tyre. It imparts anti abrasion quality and enhances the tensile strength of rubber. Carbon black is also used in industries such as automotive parts, construction and consumer products. It has applications in printing inks, coatings, electrical cables, plastic films, pipes. It is used to manufacture dry cell batteries. Coal tar and petroleum cokes are the
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principle raw materials used in the carbon products industry. These materials are by products of refining and other coal and oil processing operations. Phillips Carbon Black Limited, part of RPG group, pioneered the carbon black industry in India. It is now the leading producer of carbon black in the country and 9th largest carbon black company in the world. The company is not only the largest exporter of carbon black in India but also one of the largest in Asia in its field. Currently export sales stands around 20% of the total sales.lt supplies to international tyre companies such as Bridgestone, firestone, Dunlop and Goodyear.
PCBL is setting 90,000 tons per annum (tpa) capacity plant along with a 16 mw power plant at Mundra at an investment of Rs.220 core. Capacity of 50000 tones along with a 14 mw power plant will be added at Kochi at an investment of Rs.140 corer. These investment requirements would be met through debt and internal accruals.
PCBL is also setting up a 55,000 tpa capacity carbon black plant along with a 16 mw power plant in Vietnam at an investment of US $ 46 million. Rising crude oil prices is a major concern for the company. In the past the company was not able to pass on the rise in the raw material costs to its customers. But now with the escalation clause built into the contract, the company has passed on the risk to some extent to the buyers.
WHAT IS A CARBON PRODUCT? Essentially any organic material can be thermally transformed to carbon. The carbonization process uses heat to convert organic precursors into a carbon polymer. Some selected precursors can then be transformed into a three-dimensional graphite structure or near graphite structure. Differences in the properties of final carbon products depend on the raw materials used on the extended of completion of overall chemical and physical ordering processes and upon whether the thermal transformation takes place from the vapour, liquid or solid phase. Carbon products can be grouped according to the
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extent of material processing raw material, carbon precursors and finished carbon products. Coal tars and petroleum cokes are the principal raw material used in the carbon products industry. These materials are bi-products of refining and other coal and oil processing operations. In the United States, approximately. Million metric tons of coal tar and 24 million metric tons of petroleum cokes are produced each year.
Pitches and cokes, which are derived from coal and petroleum tars or heavy aromatic liquids, are the two main carbon precursors materials from the production of bulk carbon and graphite products and for the manufacture of carbon blacks. Pitches have a glass like character and cokes are carbon industry vision infusible solids. Bulk carbon and graphite products such as electrodes are produced by first blending calcined as a filler and liquid pitch as a binder. This green material is then thermally processed through a series of progressively higher temperatures to achieve the final desired properties. Petroleum coke is the largest single precursor material in terms of quantity for manufactured carbon and graphite products. Approximately 10 million tons were consumed worldwide in 2010. Other precursors include natural graphite, hydrocarbon gases, carbon blacks, anthracite and synthetic resins. Carbon blacks are nano cale carbon particulates produced by pyroloysis of feed stock from the vapor phase with homogeneous nucleation of solid carbon.
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15
SOURCES OF DATA For the purpose of analyzing the overall performance of Philips carbon black Ltd the investigator used primary data and secondary data.
PRIMARY DATA Primary data refers to those data, which do not exist already in the records and publications. For the purpose of collecting primary data the investigator conducted an interview with every departmental employees and department heads of Philips Carbon Black Ltd. Addition information were gathered through observing the activities of the departments and the employees.
SECONDARY DATA Secondary data refers to those data, which exist already in the records and publications and website. Company journals and documents Company website Annual report ,etc
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1.5 LIMITATIONS
Time allotted for the study is limited.
The investigator could not gather all the details regarding the production process an most of the process are technical in nature. The study is largely based on secondary data. Did not get enough time to communicate with all the employees in the organization. As the primary sources are based on interaction with the employs chance of bias cannot be fully estimated.
17
World carbon black demand is forced to rise 4.2 percent per year through 2012 to eleven million metric tons, bolstered by a healthy global rubber market over the same period. The vast majority of carbon black finds use as reinforcement in vulcanized rubber goods, including around two-thirds for tires alone. Carbon black demand from the tire sector is projected to increase 4.2 percent per year through 2012 to 7.1 million metric tons. The smaller non tire rubber carbon black market will expand 4.0 percent per year through 2012 to 2.8 million metric tons. The Asia /pacific region, excluding Japan, will post the strongest gains in carbon black demand through 2012. The large market of China and India will post particularly impressive gains due to a continuing rapid expansion in their respective motor vehicle and tire industries. North America and Western Europe, which produced close to half of the world carbon black in 1996 will account for just 28 percent in 2012. Conversely, the Asia/specific region which produced 36 percent of the world carbon black in 1996 will provide 51 percent in 2012. The overall global carbon
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black market is expected to increase by 4 percent per year to a level of 9.6 million metric tons through 2009, according to a study conducted by Clevelandbased the Fredonia Group, Inc.
Industry application
Aluminum production In aluminum industry the major application of carbon black includes in the production of anodes, cathodes and sidewall in the Hall Heroult primary aluminum cell. Advantages of using the carbon black in the aluminum industry include: resistance to corrosion, resistance to thermal shock, high thermal conductivity, low porosity, high operating strength, electrical conductivity, dimensional stability. Steel production Carbon black used in steel industry includes in the production of electronics for producing molten steel, iron and other alloys. It also used in the production of carbon black for hearths and furnace walls and crucibles. Advantages of using carbon black in steel industry include carbon black hearts and furnace walls, crucibles, pressure casting electrical conductivity, resistance to thermal shock, high thermal conductivity, and dimensional stability. Glass making Carbon black is used in glass industry in the production of furnaces, crucible and handling mechanisms. Advantages of using carbon black in glass industry include: resistance to thermal shock, dimensional stability.
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Environmental Application Environmental application of carbon black includes in the carbon filters for water air purification filtration for industrial, municipal and automotive applications. Advantages of using carbon black in this area include mesosphere micro beads, veratiland controllable porosity, tailored chemically reactive surface, provides large surface area. Chemical production Application of carbon black in chemical industry includes in the production of reaction vessels, heat exchangers, pumps, pipe fittings and valves, porous graphite filters. Advantages of using carbon black in chemicals production includes resistance to corrosion, high thermal conductivity, tailored chemically reactive surface, low permeability ,electrical conductivity. Aerospace Application In the field of aerospace the carbon black is used in the production of nose cone, airframe structure, breaks, rocket nozzles etc. Advantages of using the carbon black in aerospace application include; high strength to weight ratio, resistance to thermal shock etc. Metal fabrication In the area of metal fabrication, carbon black is used in the production of high temperature rollers, dies, tooling, and electrodes for electrical application, discharge machine. .advantages of using carbon black in the area includes resistance to thermal shock, resistance to correction, high thermal conductive, mechanical strength. Nuclear power In the field of nuclear energy carbon black is used in the production of various equipments such as nuclear moderators and reflectors, thermal columns, various
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constriction materials, graphite coated fuel pellets etc. advantages of using carbon black in nuclear power include; low neutron capture cross section, high strength etc. Electronics In the field of electronic carbon black is used in the production of various equipments such as capacitors, batteries, heat sinks, electromagnetic shielding , heating elements for semiconductor manufacturing etc. Advantages of using carbon black in electronics field include electric conductivity, dimensional stability, resistance to thermal shock, high thermal conductivity, light weight etc. Sliding contact mechanical application Carbon black is an essential ingredient in the manufacturing of sliding contact mechanical equipments such as such as bearing, seals, vanes, bushes, wearing and brushes etc. Advantages of using carbon black in the sliding contact equipments Include: lubricity, strength dimensional stability etc. Recreational products In the field recreational also carbon black finds its application in the production of tennis rackets, skis, bicycles, sailboats etc. advantages of using carbon black include: high strength to weight ratio, fabrication versatility, high stiffness to weight ratio etc. Infrastructure The applicable properties of carbon black find its advantages in the area of insracture and the qualities include: seismic retrofit of beams and columns, extinction of bridges, high strength to weight ratio, resistance to fatigue and vibration etc. Transportation In the field of transportation the carbon black finds its place in the production of automotive structures, rotating components etc. advantages of using carbon black in the transportation field include: fabrication flexibility, high stiffness etc.
21
Rubber products Carbon black finds its major use in the field of rubber products. It is used the manufacturing of tires and rubber. Advantages of using rubber products include; structure particulates of controlled morphology, readily wet by rubbers, thermal stability, mechanical robustness etc.
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P/E
Market 52-Week
135.10
0.78
3.83
4452.82
242/113
Orient Car
1257.06
122.50
-0.65
3.46
1269.50
161/100
2592.77
99.55
0.00
0.00
869.91
0/0
Goa Carbon
2507.16
84.50
-0.59
8.46
777.84
115/63
Murablack India
0.00
1.80
0.00
0.00
52.00
0/0
Guj.Carbon
0.00
3.99
2.84
0.00
49.40
6/2
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China and India registered double digit demand growth strong rise in the carbon black industry. The Asia-Pacific region, excluding Japan posted the strongest gain in carbon black demand through 2011.The vast majority of carbon black finds use as reinforcement in vulcanized rubber woods including around two - thirds for tyres alone.
24
Due to the investment in road infrastructure and increasing vehicle population, the rest of the world clocked 3.5% growth. Phillips Carbon Black does, however the company has invested in a means of converting this waste into energy and financial savings. The India based company has announced the commissioning of its 30 MW co-generation power plant Durgapur, in the state of West Bengal. The Rs 1 billion (11.6 million) facility, which utilizing the waste gas produced during the process to generate power, was commissioned on September 29.
An RPG Enterprises group (who also owns tyre manufacturer Ceat) company, Phillips Carbon Black is Indias largest, and the worlds seventh largest, manufacturer of carbon black, and the company sells carbon black to almost every tyre company in India. Its three plants currently account for 70 per cent of Indias installed capacity. The company is also Asia`s largest exporter of the commodity.
Other current company projects include the construction of a new 80,000 tone carbon black production facility in Mundari, India, commissioned on March 2010 and a 100,000 tone facility in Vietnam.
25
PCBL Durgapur Unit has now a production capacity of 1, 35,000 MT per year with a proven capability to produce 24 grades of carbon black through successive stages of modernization and expansion. It is ISO-9001 certified, and is the only Carbon Black manufacturer in Asia to have achieved this distinction. The Durgapur unit has also received the
26
QS-9000 in December 2000, and has initiated the Environmental Management System (EMS) activities for receiving ISO 14001 Certification. Cochin plant obtained ISO 9002: 1994 Certificate in 1998, which was followed soon after by that of the Baroda plant. Cochin Plant has also bagged the Environment Management System (EMS) standard accreditation under the 14001: 1996. PCBL acquired M/s Gujarat Carbon & Industries Limited (GCIL) Baroda in November 1996 and M/s Carbon and Chemicals India Limited (CACIL) was merged with PCBL with effect from 1st April 1997 with the twin objectives of increasing volumes and proximity to certain key customers. A capacity expansion was undertaken in 2004 to take the plant capacity at Baroda to 90000 MT/Annum. The rubber industry uses a total of 95% of carbon black production while the rest is consumed by plastics, paints and dry cells. In domestic market, the company is regular supplier to all the major tyre manufacturers and has an overall domestic share of around 40%. PCBL continues to be the the undisputed leader in the field of carbon black in India.
The major players in the Indian scenario are: Phillips Carbon Black Ltd (Durgapur, Baroda, Cochin). United Carbon Ltd, Thane. Oriental Carbon Ltd, Ghaziabad. Consolidated Petrotech Industries Ltd, Baroda. Ralson Carbon Ltd, Ludhiana.
Like other countries, in India, carbon black is used in: Aluminum production. Steel production. Glass making
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Environmental application. Chemical production. Aerospace application. Metal fabrication, Nuclear power, Electronics. Recreational products, Infra structure. Rubber products.
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Major players in the Kerala scenario: Phillips Carbon Black Ltd United carbon ltd, thane Oriental carbon ltd, Ghaziabad
The key customers are; MRF. Apollo Tyres. Ceat Tyres JK Tyres..Etc.
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its inception in 1960. PCBL started production from 1962 in collaboration with the world carbon black leader, Phillips Petroleum Company, USA. The collaboration ended in 1978. COCHIN UNIT
Company Address:
Name:
Registered Office:
3 l, N.S.Road, Kolkata-700001
Corporate Office:
3 l, N.S.RoacLKolkata-700001
Date of incorporation:
March 31 1960
Sector:
Private
Constitution:
Production capacity:
40000 MT p. a
Turn Over:
140 Cores p. a
148
Management Staff:
62
31
Non-Management staff:
86
Hours of work:
8 hrs
The company is considering various proposals in the field of electronics. The subsidiaries of the company are: MISSION Develop, manufacture and market carbon black competitively and be the most preferred supplier to the customers and create wealth for all the stakeholders on a sustained basis. VISION To be a global carbon black producer. Manufacturing with low cost. To be environment friendly operation by being; Providing fair employee an exciting work place. The On share Investments Ltd. Carnival Investments Ltd. Philcarb Investments and Industries Ltd. Philcarb Industrial Finance Ltd. PCBL Industrial Finance Ltd.
COMMUNITY INITIATVES Pipeline for drinking water for school. Free distribution of books. Merit award. Secured landfills for hazardous waste disposal. Rain water harvesting. '
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QUALITY POLICY It includes; Consistently meet the requirements of product specification. Upgrading technology and business process to meet the changing needs of the customers. To be an environment friendly organization.
PCBL honors and recognizes performance through; An aggressive performance management system. Awards for outstanding performance. Organization and management reviews process at Management
Committee level that reviews the status and progress. . FACILITIES Officers colony. Playground. Swimming pool.
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plastics, paints and dry cells. In domestic market, the company is regular supplier to all the major tyre manufacturers and has an overall domestic share of around 40%. PCBL continues to be the undisputed leader in the field of carbon black in India. Encouraged by the success of the Baroda co-generation power plant, the company is setting up a 30 MW co-generation power plant at its Durgapur plant utilizing the off gas for generation of power. The internal consumption would be around 6 MW and the surplus power would be sold to interested consumers. PCBL has three manufacturing units located in Durgapur, Cochin (Southern India) and Baroda (Western India). The production capacity of the three units put together is almost 47% of the total installed carbon black capacity in India; that of Durgapur unit alone accounts for 24%. Products manufactured by the company include: The company designs, manufacturers and markets carbon black. The major market for Carbon Black is Tyre Industry. Carbon Black is also required by Non-Tyre rubber based application industry as well as the plastic industry. PCBL has capability & flexibility to produce any ASTM grade in addition to the grades mentioned above. Besides ASTM grades, PCBL also manufactures customized product specific to a customer. The company is the largest manufacturer and supplier of carbon black in the country catering to the needs of elastomer, plastic, paints and ink manufacturing industries.It also manufacture Special Black for non-rubber applications Achievements/ recognition : The company has bagged prestigious awards like coveted ICMA Award for novel energy conservation in chemical plants of the country. The company has bagged CHEMTECH foundation Award for wealth from waste. In 1997, it has also won the best company of the year award for all round performance within the RPG companies.
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Award for second best safety and housekeeping practices was awarded (in 1995 for PCBL Durgapur). It is ISO-9001 certified, and is the only Carbon Black manufacturer in Asia to have achieved this distinction. The Durgapur unit has also received the QS-9000 in December 2000, and has initiated the Environmental Management System (EMS) activities for receiving ISO 14001 Certification. Cochin plant obtained ISO 9002: 1994 Certificate in 1998, which was followed soon after by that of the Baroda plant. Cochin Plant has also bagged the Environment Management System (EMS) standard accreditation under the 14001:
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Sl .no. 1
Grade N-110
Major applications OTR, heavy duty rollers, Tank treads, Mechanical goods.
N-115
Aero tyre and special application Tyre tread, retreading, mechanical goods, heavy duty belts.
N-220
N-231
Higher modulus
Tyre tread, retreading, mechanical goods, heavy duty belts, suitable for Higher friction
N-299
N-234
Good tensible strength and abrasion resistance with very high modulus.
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N-219
Industrial rubber goods, OTR, heavy duty belts. OTR, tyre, v belt, skim and mechanical goods.
N-326
Better resistance to chipping and cutting, gives very good tensile strength.
N-330
Widely used because of its balanced properties, imparts goods modulus, tensile strength, abrasion resistance.
10
N-339
11
N-347
Tyre treads heavy duty belts, wire and cable jacketing. Tyre treads, retreading etc
12
N-351
Good modulus, tensible strength and abrasion resistance with lower heat buildup.
13
N-375
Balance of fundamental properties between N-220 and N339, its road ware properties are similar to N-220.
14
N-550
Tyre innerliner,,butyl tubes ,hoses, cables, window channel seals, mechanical goods
15
N-650
38
16
N-660
Inner tubes, molded items etc. Beads , insulation ,apex molded goods etc.
17
N-762
Very high loading for better economy, good processing, low hysteresis to rubber.
18
N-774
Low compounding cost with higher loading, higher structure gives better processing.
19
N-765
39
Parameters Current ratio Quick ratio Inventory turnover ratio Debtors turnover ratio Working capital turnover ratio Gross profit margin% Return on long term funds Fixed assets ratio Solvency ratio Propreitory ratio Reported return on net worth Dividend payout ratio(ne tprofit) Dividend payout ratio(cash ratio) Debt/equity
2009 1.45 1.09 10.14 2.6 4.18 2.48 8.14 1.01 0.69 0.11 -16.22 -
2010 1.56 1.14 10.76 3.93 6.05 7.77 25.85 0.92 0.599 0.19 14.67 25.11
13.46
3.79
1.55
40
PCBL is a listed company in both the Indian bourses-BSE and NSE. The market capitalization of PCBL as on 31-march-2010 is Rs 348 crores in which 50% comes from the promoters and 11% from institutional holding. The revenue of PCBL during financial year 2009-2010 was Rs, 1113 crores. The EBITDA was Rs 112 crores and the net profit was Rs 24 crores. The dividend declaration as of last year was 20% of the profit. Annul Tourneur crossed Rs 1200 crore during 2009-2010.sales value increased over 36%.sales volume witnessed a robust growth of 11%. Power generation rose by 11.35% during 2009-2010. Production increased 11%. The year 2009 visualized feedback price increased. In 2010 forward trading was done, efficiency increased, challenges increased and the company focused on cost. Improved operational efficiencies, better working capital management and lower finance cost helped mitigate the steep increase in raw material cost during FY20011. Accounting to management, the company saved Rs150cr in FY2010 on account of operational efficiencies.
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Managing Director
Head Producti on
Head Logistic
Head HR
Head finance
Head Warehou se
Head R&D
Section head
Officers
FINANCE MANAGER
OFFICER
ACCOUNTS ASSISTANT
EDP SR.OFFICER
JR.ACCOUNTANT
Fig-2
43
. Working capital management:- The management of working capital involves; Cash balances. Management of accounts receivable. Management of inventory.
Credit managementBanking functions : PCBL banks with; State Bank of India., State Bank of Travancore., ICICI Bank, Bank of Baroda.
44
To plan a sound capital structure there should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.
45
Less; interest(net) PDBT Less; depreciation PBT Provision for taxation PAT Balance brought forward Profit available for appropriation Proposed dividends Proposed golden jubilee Year dividend Tax on aforesaid dividends Transfer to general reserve Balanced carried forward to balance sheet
28.94 163.73 31.15 130.58 7.89 122.69 39.49 162.18 11.30 2.83
_ _ 39.49
46
16621.99
377.64
16504.22
14966.15
16833.71
47
Responsibilities of Accountant
The responsibilities of the Accountant are as follows. Daily data entry Maintain the stock register Maintain the ledger, voucher etc.
Responsibilities of Cashier
Maintain minimum level of cash flow to meet day to day expenses Record daily transaction of money Maintain cash book
48
Material manager
Senior officer
Store keeper
49
Purchase Department is the key department in the company. Quality Raw materials leads to quality products. The Purchase Department ensures the purchase of quality raw materials for production at reasonable prices. About 90% of total cost is incurred for procuring raw materials. All other Departments act as supporting departments. This department takes account of how much to be purchased and the stock level of production. Purchase of various raw materials takes place through Purchase Department.
Approval of specification list of the materials required for a particular project Receipt of materials > Identification and development of reliable vendor for supply of equipment and materials Material requirement planning The performance evaluation of vendors The vendor performance is evaluated based on: Quality Percentage of rejection Adherence to delivery commitments After sales service
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Store Keeping Inspection of incoming materials Storage identification and preservation Equipments records maintenance Control of customer supplied materials Stock verification Safe custody of materials Optimization of inventory
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stores department while clearing the PR, duly prefixed by the officer code number. The dealing officer then initiates action for the issue of the enquiry.
Raw Materials
CBFS the primary raw material accounts for 55-60% of the total operating costs. Hence, CB manufacturing is a highly raw material intensive industry. CBFS use the residue left after the refining of the crude petroleum oil. Since CBSF prices are closely linked with crude petroleum prices, the CB manufacturers are essentially price takers and are exposed to the risk of volatility in CBFS prices. In order to insulate themselves from such volatility, the domestic manufacturers have formulated a pricing policy which\ tries to pass on the volatility of CBFS prices to the customers by linking with ex-factory CB prices of a producer to its actual purchase cost of CBFS over a quarter.
Raw material cost being a ingredient of the total cost of the procurement of the same is given the highest priority and is monitored at the level of managing director with the help of a committee. PCBL produces around 70-80% of CBFS from the New York Mercantile exchange (NYMEX) either through spot market or futures market. The rest is being sourced from the domestic producers. The CBFS pricing at NYMEX becomes the benchmark price for the domestic producers and hence the ultimate cost to PCBL is the same, still PCBL prefers to impart the CBFS as a domestic feedstock has the lesser quantity of carbon than the imported one.
52
Human Resources, specifically: recruiting, hiring, training and development, performance management, payroll, and schedule workplace scheduling
Store business operations, including managing profit and loss, facility management, safety and security, loss prevention (also called shrink), and banking
Product management, including ordering, receiving, price changes, handling damaged products, and returns
Team Development, facilitating staff learning and development Problem solving, handling unusual circumstances
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Establishing foreign and domestic suppliers Negotiating the lowest prices Administering online purchasing systems Acquiring materials and parts needed Structuring product contracts Studying sales records and inventory levels Placing orders and checking shipment Controlling departmental budgets Interviewing, hiring and overseeing staff Appraising products and services
The purchasing managers frequently work more than 40-hours each week because of sales and production deadlines. Usually purchasing managers should be available to travel several days each month in order to attend conferences, trade shows and to meet with suppliers. Additional responsibilities of a purchasing management agent include analyzing market conditions, assisting in the planning of sales promotions, aiding executives in order to decide the nature of the sale and working with advertisers to create ad campaigns for newspapers, television and direct mail. Purchasing managers commonly visit the selling floor to make sure that all goods are displayed accurately.
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Production in charge
Shift in charge
DCS in charge
Field Officer
Process Technician
Fig.no.4
55
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1. Right quality the quality of carbon black is established based upon the customers needs. The right quality is not necessarily best quality. It is determined by the cost of the product and the technical characteristics as suited to the specific requirements.
2. Right quantity the organization should produce the products in right quantity. If they are produced in excess of demand the capital will block up in the form of inventory and if the quantity is produced in short of demand, leads to shortage of carbon black.
3. Right time timeliness of delivery is one of the important parameter to judge the effectiveness of production department. So, the production department has to make the optimal utilization of input resources to achieve its objective.
4. Right manufacturing cost manufacturing costs are established before the product is actually manufactured. Hence, all attempts should be made to produce the carbon black at pre-established cost, so as to reduce the variation between actual and the standard (pre-established) cost.
Elements of production operation managing operations can be enclosed in a frame of general management function . Operation managers are concerned with planning, organizing, and controlling the
57
activities which affect human behavior through models. Planning a\Activities that establishes a course of action and guide future decision-making is planning. The operations manager defines the objectives for the operations subsystem of the organization, and the policies, and procedures for achieving the objectives. This stage includes clarifying the role and focus of operations in the organizations overall strategy. It also involves product planning, facility designing and using the conversion process. Organizing Activities that establishes a structure of tasks and authority. Operation managers establish a structure of roles and the flow of information within the operations subsystem. They determine the activities required to achieve the goals and assign authority and responsibility for carrying them out. Controlling Activities that assure the actual performance in accordance with planned performance. To ensure that the plans for the operations subsystems are accomplished, the operations manager must exercise control by measuring actual outputs and comparing them to planned operations management. Controlling costs, quality, and schedules are the important functions here. Behavior Operation managers are concerned with how their efforts to plan, organize, and control affect human behavior. They also want to know how the behavior of subordinates can affect managements planning, organizing, and controlling actions. Their interest lies in decision-making behavior.
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Models As operation managers plan, organize, and control the conversion process, they encounter many problems and must make many decisions. They can simplify their difficulties using models like aggregate planning models for examining how best to use existing capacity in short-tem.
Overseeing the production process, drawing up a production schedule. Ensuring that the production is cost effective. Making sure that products are produced on time and are of good quality. Working out the human and material resources needed. Drafting a timescale for the job. Estimating costs and setting the quality standards. Monitoring the production processes and adjusting schedules as needed. Being responsible for the selection and maintenance of equipment. Monitoring product standards and implementing quality-control programmers. Working with managers to implement the company's policies and goals.
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Ensuring that health and safety guidelines are followed. Supervising and motivating a team of workers. Reviewing the performance of subordinates. Identifying training needs.
Taking smart decisions for purchase of equipment and machinery for the production unit. Attending meetings with senior board members and managers of PCBL discuss the problems in production (if any) and inventing new technologies for better production.
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Process air
Cracking reactor
Micro pulverization
Pletisationel
Drying
Storage
Packing
Dispatch
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PCBL manufactures Carbon Black by a process known as the Oil Furnace Process. Carbon Black Feed Stock used as raw material are hydro carbon oils rich in carbon content of petroleum and coal tar origin, preheated air and oil feedstock are injected in reactor lined with high temperature refractorys kept at a temperature of 1200-1600 degree celcious, where the feedstock undergoes cracking or decomposition.
The decomposition of the feedstock in deficiency of air and under carefully controlled conditions results in the formation of Carbon Black aggregates. The reaction which takes place in a few milliseconds is stopped by water quench. The resultant smoke carrying Carbon Black is quenched with water sprays and passed through heat exchangers, which in turn preheat the inlet oil and air thus achieving conservation of energy and improving the yield.
The product stream i.e. smoke is further cooled by secondary water quenching in vertical towers. it then enters bag filters where carbon black is separated from gas , the by product called off gas having low calorific value (around 650-700kcal/NM3 average) is burnt and the heat is utilized for generation of stream , drying operation &generation of power. Separated carbon black dust is pneumatically conveyed to a pelletize where the help of water solution and high gyrating force pellets are formed which are dried in rotary dryers finally stored in product storage tanks , products are bagged in paper bags(2.5kg.nt). PCBL manufactures carbon black in a number of grades. The various grades can be broadly divide between two categories, viz, Hard Black & Soft black. Hard Black is manufactured by a process called tread stream and is basically used for the outer surface of the tyre. Soft Black is manufactured by a process called carcass stream and is basically used for the inner surface of the tyre. The process flow schematic diagram is enclosed.
Surface area and structure are two primary variables in the process, which result in different grades, changes in surface area or structure or both at a time to pre-calculated
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levels will effect change over into other grades. Surface area is changed by changing operating conditions in the reactor, such as
Throughput(oil rate) oil burner positions Residence time(time of reaction) Oil-air ratio
Major equipments used Reactors No: 3 & 6 Air pre-heaters Process air blowers Compressors Pumps and fans Bag collectors Micro Pulverizes Mixer Palletizes Rotary Drier Storage silos and auto packer
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Preservation of products
The department preserves the conformity of the product during internal processing, storage and delivery to the intended destination. The preservation of the product includes the protection of products against damage or loss during packaging, handling, storage and delivery.
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Canteen
Senior officer
Junior officer
Security
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2. Training
Providing training to employees will result in high productivity, improving the quality and help the company to fulfill its organizational goals. There are two types of training. 1. Behavioral training and 2. Technical training The technical training comprises of on the job training and technology up gradation training. Behavioral training comprises of soft skills development training. In the beginning of the year a letter will be sent to the department head to identify skill gap for behavior, technical training. After the identification of training needs human resource department prepares a training calendar showing person, program, month, and faculty. A questionnaire will be send to all department heads to know the change imparted by training.
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Competency profiling' is a method of CRG is used in PCBL which links compensation to the 3 ps-person, position, performance. The model has helped the organization in position clarification, objective setting, performance review, position evaluation and personal development of executives. Training shall be imparted in any of the following means in- house (on the job, of the job ) external or third party training center. Training method to be adopted on case to case basis depending on the need and profit of the personal required to be trained. In case of transfers or new recruitment of personal, training is imparted by the head of the respective department and sent to hed HR and administration. Candidates selected as management trainees shll be imparted with the on the job training for the period of half year based on requirements. Annual appraisal of all management staff shall be conducted as per RPG group policies from time to time.
agencies for hiring purpose. Direct recruitment is made by the personnel manager and concerned head of the department.
Selection procedure
Firstly the applicant has to fill a manpower requisition from. The shortlisted candidates are invited to attend interview and the best candidate is selected among them and given introduction training. The selected candidates are appointed on a probation basis for six months after that they are eligible for all benefits from the company. The promotion of the employees is based on merit. The performance appraisal management system is highly active in the department. During the beginning of the year duties and responsibilities each employees are prepared and
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some standards are fixed in order to compare the actual performance with standard performance.
4. Industrial relations
PCBL is having a smooth industrial relation set up. There are two unions representing the unionized category of workmen, namely PCBL employees union and CACIL employees association. There are four year long term settlements signed before the labour commissioner towards ensuring wage hike, perquisites and productivity. Unions and management strictly follows industrial disputes act 1947, which contains provisions dealing with grievances redressed. GRIEVANCE procedure If any workman has any grievance to be redressed he must place the same before his superior officer as soon as possible. If no satisfactory redressed is obtained from the superior within 7 days the workman shall proceed with the formal grievance procedure. Present a written statement of his grievance to the department head through proper channel. The department head shall investigate the matter and give his decision in writing to the workman within 10 days. On failure to receive a satisfactory redressed from the department head the workman may submit his grievance in writing to the G.M Tech/head of the factory in respect of workman in the factory and an officer of the registered office authorized by the management. No grievance will be entertained by the GM (tech) officer authorized by the management unless the formal grievance procedure has been followed as given above except when it can be specifically shown that the department head is a party to the grievance.
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Performance appraisal
RPG Enterprise recognizes and honors performance through:
An aggressive performance management system Awards for outstanding performance Fast track careers for consistent high performers Career opportunities in the various business sectors of the group Organization and Management review process at the management committee level that reviews the status and progress of high fliers
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HOD
Manager instrumentation
Manager mechanical
Manager electrical
Forman
Technical engineers
Asst. Forman
Instrumentation mechanics
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Electrician Helper
The maintenance department is concerned with rectifying problems related to 3 sections; Mechanical section:- It rectifies mechanical defaults of machines and equipments in the plant. The precaution initiative is taken by the head of the department for the whole year. Once in every year, shutdown maintenance is performed for improving the performance of the machineries in the plant. Electrical sections:- It is engaged only for rectifying power failures. Instrumentation section:- It deals with the maintenance of instruments showing temperature of machines, flow of fuel, water etc.
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Executive
Heads man
Packing mazdoors
Helpers
Fig.no.8
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The department stores the product after packing until delivery. PCBL has a storage capacity of 10,000 tones. After testing by the quality assurance department, the products are stored in the storage which is having different compartments that are based on grades. The packing process is done automatically through a machine which performs the following functions like; Bagging, Stitching, Weighing There are 2 types of packing. They are: Jumbo bags which is about 1 ton approximately. Paper bags which is about 25 kg.
The main functions carried out are : Storing Packing & Loading
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Head logistic
Senior assistant
Fig.no.9 The policy of this department are: On time delivery of products to customers Optimization of transportation cost for dispatches from plant
The responsibilities of Head logistics are: Scheduling dispatches from the unit Selection of carriers and negotiating terms of business Performance review of carriers
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Manager R&D
DY. Manager
SR.. Chemist
Lab assistant
Chemist
Fig.no.10
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Marketing functions of PCBL are centralized. PCBL Cochin unit has no separate marketing department. Marketing functions are carried out through the head office of PCBL, Kolkata. PCBL has 5 regional offices for coordinating the marketing process. Each regional offices have: 1 regional marketing manager 1 accountant Other supporting staff
Production plan for Cochin unit is given from the head office and production is made accordingly. The logistics department in the plant acts as the marketing department. They make necessary arrangement for loading the products and coordinate other related activities. 90% of the production is directly acquired by the tyre manufacturing companies and remaining 10% by a soul distributor (A V Thomas & Co.).
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Generating Process Power The main functions of department are : Produce and supply electricity as per requirement Produce and supply steam
The off-gas which comes out of the bag filter after being separated from carbon black is basically a bi-product gas with a low calorific value. This waste gas is burned and heat generated from combustion is used to generate steam in the boiler which in turn runs the turbine to generate power. The combustion furnaces a re built to incorporate the three most critical requirements for burning low calorific value process waste gas namely: Time for good mixing of combustible Temperature for bringing combustibles to its ignition point Turbulence to complete the combustion without going below the ignition point
The combustor is a refractory linked furnace and is kept hot to provide proper temperature. Cyclonic principle is used to provide turbulence and intimate mixing of process waste gas and combustion air adequate combustor volume is provided for the necessary residence time to complete the oxidation of the combustible components. The process waste gas enters the refractory linked combustor tangentially through a rectangular part at high velocity. Tangential entry and high velocity imparts a strong swirl to the process waste gas and the resulting centrifugal force makes the process waste gas burn the hot refractory. The part of the combustion air is forced into swirling process waste gas through multiple radial nozzles in the refractory. This high momentum jets help the less viscous air to mix well with the more viscous process.
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SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). SWOT analysis is done for a company, to find out its overall Strengths, Weaknesses, Threats and opportunities leading to gauging the competitive potential of the company. The SWOT Analysis enables a company to recognize its market standing and adopt strategies accordingly. Here SWOT analysis of Neon Paints is made to understand the positioning of the company better.
5.1.1 Strength
Reputation of the company. 40 years of experience. Professional management. Latest technologies Sound financial position. Better customer satisfaction. ISO 9001:2000 certification.
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ISO 14001:2004 certification. ISO TS 16949 certification. Less employee turnover ratio. Wide market share in the domestic market.
5.1.2 Weakness
Raw material of production has close relationship with crude oil prices. The company faces risk when there are market fluctuations in foreign exchange rate and due to strict regulations relating to the import of raw materials.
5.1.3 Opportunities
Growth in the domestic automobile industry. The company can convert off gases to produce electricity and boost profitability. The road infra structures can increase the demand for tyres which can lead to the increase in demand of carbon black.
5.1.4 Threats
Increase in the cost of feedstock. Volatile trade union. Import of carbon black.
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The organization has a well laid department structure with separate department heads for each functional areas.
All departments in the Company are ISO 14001 certified. Regular internal and external audits are conducted to check the compliance and renewal of certificate. There is a full swing total quality management system and it works efficiently ensuring the total quality of the organization and its product and services.
The company generates electricity for its operation on its own and the power generated in excess of its requirement is sold to K.S.E.B
Materials management is so efficient that there are very less chances of damaged goods and scrap items. The company takes necessary steps to see that damaged goods are not coming in and going out.
PCBL Cochin unit has no separate marketing department. Marketing functions are carried out through the head office of PCBL
All the employees and laborers are found to be working hard towards achieving the organizational goal.
For solving grievance open door policy is used by top level management.
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Suggestions
The plant may think of a separate marketing department so that the time lag for decision making may be reduced. The company must try to locally source the required raw materials to the maximum extend The company should look at the option of generating more electricity as it can contribute to reducing the problem of acute power shortage in the state. The company may arrange for the transportation of its employees so that better employee welfare can be ensured. The company should initiate Public Relations activities to do away with its negative image of a polluter. The company has to focus on global market to increase its profitability Latest production technologies may be implemented so as to reduce the production cost. The company must take the trade union into confidence so that tensions may be reduced
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6.1 CONCLUSION
Phillips Carbon Black Ltd., part of the RPG group pioneered the carbon black industry in India. It is now the leading producer of carbon black in the country and the 7th largest carbon Black company in the world. Rapidly evolving trends constantly revolutionize the manufacturing industry. To achieve competitive quality PCBL has been continuously upgrading the technology.
The study in Phillips Carbon Black Ltd has enabled the investigator to understand the various needs of an organization, how an organization of a corporate nature functions and how important it is to have a right relationship between the employee and employer or the management.
The study was conducted with a view to understand the functions of an organization, and its various departments. The organization study helped the researcher to understand that any objective cannot be achieved in a short span of time.It needs to be undertaken systematically.. Finally, in any organization time management play important role because each activity should be done at a right time at right place This study has improved my confidence by its successful completion to undertake such studies in the future. "Productivity is never an accident; it is always a result of commitment to excellence, intelligent planning and focused effort".
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BIBLIOGRAPHY
Books a) Arun Kumar and Meenakshi, - Marketing Management, second edition, Vikas publishing house Private Ltd New Delhi. (2006) b) Kothari.C.R- Research Methodology methods international publishers, 2004. c) Aswathappa K- Human Resource & Personnel Management, Tata McGraw Hill publishing co. ltd., 1999. d) Pandey.I.M Financial Management, Vitas publishing house Private Ltd, 2000. & techniques, New age
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