An Organisational Study Conducted at KERALA ELECTRICAL AND ALLIED ENGINEERING COMPANY LTD.

MAMALA COCHIN

MASTER OF BUSINESS ADMINISTRATION MAHATHMA GANDHI UNIVERSITY KOTTAYAM 2011-2012 Submitted by Smruthi R Reg No:23519 Sree Narayana Gurukulam College of Engineering Kadayiruppu, Kolenchery.

DECLARATION I do here by declare that this report on ORGANIZAT IONAL STUDY at Kerala Electrical and Allied Engineering Company Ltd. Mamala, Cochin. is sub mitted to Mahatma Gandhi University in partial IulIillment oI the requirement Ior the aw ard oI the degree oI Master of Business Administration as a bonaIide record oI the summer internship training undergone by me in the Iirm and prepared under the guidance oI Dr.Hareesh N Ramanathan, Department oI Management Studies, Sree Narayana Gurukulam College oI En gineering Kadayiruppu, Kolenchery.

Certificate %his is to certiIy that this report is a bonaIide record oI the org anization study conducted at Kerala Electrical and Allied Engineering Company Ltd. undertaken by Ms. Smru thi R Reg No: 23519 Ior the partial IulIillment oI the requirement Ior the award oI the degree Master oI Business Adminstration program Ior Mahathma Gandhi University, Kottayam.

Project Guide

ACKNOWLEDGEMENT At the outset, I thank God Almighty Ior his blessings throughout the study and Ior making it possible Ior me to complete the project within a stipulated time. I would like to express my heartIelt gratitude to Prof. C.E Kri shnan, Principle, Sree Narayana Gurukulam College oI Engineering, Kadayiruppu, Kolenchery and P rof. (Dr.) Kemthose P Paul, Head oI the Department, Department oI Management Studies, Sree Narayana Gurukulam College oI Engineering, Kadayiruppu, Ior permitting me to und ergo this internship training at Kerala Electrical and Allied Engineering Company Limited. I am extremely thankIul to Dr. Hareesh N Ramanathan, Department oI Management studies, who gave me guidance and suggestion Ior the preparation oI t his organization study report. I extend my thanks to all Iaculty members oI Department oI M anagement studies, Sree Narayana Gurukulam College oI Engineering, Ior their help and encouragement. I wish to express my gratitude to Mr. Benny Augustine, Personne l Manager, and Mrs. Smitha %homas, Junior OIIicer Ior granting me the permission to do my internship training in the company. Also I express my thanks to, Mrs. Little Flower, who provide d all inIormation and resources. I also express my thanks to all the staII & workers in the Iirm, who helped me during the course oI my study. I extend my token oI love to all my friends Ior their support and encouragement Ior the successIul completion oI this project.

Smruthi R

Contents Chapter 1 Introduction Objectives oI study

Study plan Chapter scheme Chapter 2 Industry profile World scenario Indian Scenario State scenario Chapter 3 Company profile About the company Units Product mix Competitors Organization structure Balance sheet Chapter 4 Departmental details Personnel and administration department Finance and accounts department Marketing department Design department Materials and stores department Production Department Security Department SaIety and Environment control Department Chapter 5 SWOT Analysis Chapter 6 Observations and Conclusions

List of tables List of Figures & Illustrations

Chapter 1 Introduction

Introduction An organization study is a study which gains knowledge about the overall working oI an organization. An organization study is manly conducted to understand the various activities, departmental structure, Iunctions, previous perIormance, Iuture plans.etc. In an organization study data can be collected through interview, previous records, an d direct observation oI organization .etc. An organizational study involves the study oI the structure and Iunctioning oI i ts departments. Organizing is one oI the important Iunctions oI Management. Almost all the organizations are diIIerent but they have certain common Ieatures. All are colle ction oI people, linked together by Iormal and inIormal relationships. %hey have hierarch ical orders that are engaged in co-operative activities and they all have identical boundari es. So the study oI people in organization is important Ior Iuture managers. Structure oI a n organisation is very important Ior its Iunctioning and growth. It provides the b asic Irame work Ior its progress and expansion. For Iuture managers it is imperative to stu dy the organisational structure and Iunctioning oI successIul organisations so that the y as Iuture managers may guide organisations towards success and proIitable Iunctioning 1.1 Objectives of the study O %o gain an in-depth knowledge about the entire organization and to get a clear view about the day to day Iunctioning oI the organization thereby understanding the real wo rking environment O %o study about the Iunctioning oI each department oI the Iirm. O %o know and understand how the management oI this company makes use oI the management tools, concepts, theories and its principles in practical environment oI an organization O %o study the Iractional integrity and interdependence oI diIIerent departments in the Iirm. O %o conduct a thorough study about the various strengths, weaknesses, opportuni ties and threats oI the organization O %o understand the background, present structure and Iuture prospects oI the or ganization. 1.2 Study Plan Organization study was conducted at Kerala Electrical And Allied Engine ering Company Limited and it started on 2 nd May 2011. Overall idea about the organization was given by the Junior OIIicer (P & A). During the Iirst week Iinancial aspects oI the company were colle

cted Irom the Iinance and accounts department oI the company. Asst. Finance Manager oI the company hel ped Ior that. She also gave the previous year Iinancial report oI the company and also explain ed the Iinancial policies oI the company. In design department Asst. Manager, %ransIorme r Division Design explained presentation oI drawing and speciIication. Second weak, Personal and Administration and Planning department were v isited. In personal and administration department HR manager explained about HR st rategies, selection procedure, and employee allowance..etc. in planning department Asst mana ger explained preparation oI work amendment and work order. Next week materials and production section oI the company was visited. In this department Deputy General Manager described about what really happened there. In production department, Asst. Manager clariIied about manuIacturing activities. Last week oI my organization study details regarding quality and assur ance department were collected. Marketing manager gave a clear picture about various marketing a ctivities oI the company. In quality and assurance department, Asst. Manager explained about how they ensure quality oI their perIormance. %he organizational study was a nice experience and it gains my knowle dge about, how company can smoothly carried out their activities.

1.3 Chapter scheme Chapter 1 %he Iirst chapter is the introductory chapter and includes the objective oI the study, study plan and chapter scheme. Chapter 2 %he second chapter is about the industrial proIile. %his chapter include the wor ld, Indian, and state scenario oI the industry. Chapter 3 %he third chapter is about the company proIile. %his include business history, history oI the company stating the objectives and developmental stages since the inception, dat e oI Inception ,ownership status, number oI units with detail oI each unit, competitors ,organi zation structure, Iinancial perIormance oI the company Ior the last three years, growth proIit and Iuture plan. Chapter 4 %he Iourth chapter describes departmental details and this chapter includes each Department`s Structure, Functions, Procedures and Policies and Programmes. Chapter 5 %he IiIth chapter includes the strength, Weakness, opportunities and %hreat oI t he company.

Chapter 6 %he sixth chapter carries the observations oI the organizational study conducted at Kerala Electricals and Allied Engineering Company Ltd. It also include conclus ion, ReIerences and Appendix.

Chapter 2 Industry Profile

Power is a critical inIrastructure on which the socio economic develop ment oI the country depends. Recognizing that electricity is one oI the key drivers Ior rapi d economic growth and poverty alleviation, aIter independence Indian government has decide d to bring all new power generation, transmission and distribution in rural and urban cent re under the purview oI state and central government agencies. Accordingly State Electricity Boards we re Iormed in all states. %oday SEB`s are the major constituents oI the power sector. %he commercial and industrial distribution transIormers market oIIers a still developing case study in the inIormal collaborative model Ior a national market transIormation initiative. Despite this large economy wide savings opportunity relatively little a ttention has been paid to commercial and industrial transIormer eIIiciency. For new Iacilities, expansion or renovation oI existing Iacilities or the rare transIormer Iailure, choices exist which can pro vide substantial costeIIective energy savings. By choosing energy eIIicient transIormers, individual commercial and industrial Iacilities can cut total electricity bills by 0.3 to 1.5 or more with p aybacks oI three to Iive years at national average electricity rates. Electrical ManuIactures Association, the U.S Environmental Protection Age ncy Iederal purchasers represented by the Federal Energy Management Program, utility and reg ionally-based

energy eIIiciency program, and energy eIIiciency organization. Each oI these m arket actors has played or will play a critical role in addressing speciIic market barriers. 2.1 Transformers A transIormer is a voltage changer. %ransIormer industry is d ivided in to distribution, power and other type oI transIormers. %he health oI tran sIormer industry depends largely on the power generation and transmission sector. %he major use r oI this industry is the State Electricity Boards and Industries. %he transIormer industry in India has d eveloped Ior over 50 years and has a well matured technology base. It has the technolo gy to manuIacture wide range oI power transIormers, distribution transIormers and special trans Iormers Ior welding, traction and Iurnaces etc. Energy eIIicient transIormers with low losses and low noise level are also being developed to meet international requirement. Also Indian players in the engineering segment, Ioraying in t o turnkey projects overseas, are Iurther adding to the demand Ior transIormers. %he deman d is expected to experience double digit growth over the next Iew years. On other hand the produ ction numbers indicate a death in supply. %hough on a lower base the supply has grown at a rapid rate over a longer period oI time, it seems diIIicult to match the rate oI growth in demand Ior the year ended April 2006, production oI distribution transIormers was 65131000 KVA an d 256585 other transIormers were produced. In light oI strong demand and stringent su pply, the transIormer manuIactures are expected to enjoy strong order book along with Iirm margins. 2.2 World scenario %he growing presence oI global participants in the Indian power and d istribution transIormers market is a concern Ior local manuIactures. Understanding the importanc e oI private participation Ior the growth oI the market, the Indian Govt. is actively taking steps to encourage increased private investment. %his report analyses the worldwide markets Ior %ransIormers (Electricity) in Millions oI US$ and units. %he speciIic product segme nts analyzed are Power %ransIormers, Distribution %ransIormers. One oI the most important developments in the global economy in the past halI century is the enormous growth in world trade. %he growth oI the trade share oI out put is probably the most commonly used piece oI evidence to illustrate the increasingly globaliz e world economy. %his growth has been dramatic, averaging 3 per year Ior past 50 years. In the time pe riod Iirst Iocus on 1962-99 the merchandise export share oI output tripled. %he common wisdom abo ut the cause oI this growth Iocuses on the worldwide reductions in trade barriers brought about by several GA%% agreements.

%his report analyses the worldwide markets Ior %ransIormers (Electricity ) in Millions oI US$. %he speciIic product segments analyzed are Power %ransIormers, Distribut ion %ransIormers, 500-10000 KVA, 100001-30000 KVA, 30001-100000 KVA, and 100001 KVA. %he report proIiles 195 companies including many key and niche players worldwide such a s Areva, Areva %&D, ASEA Brown BAOVERI, ABB Powertech %ransIormers, Bharat Heavy Eletr icals Limited, Crompton Greaves Ltd, EFACEC, Ekarat Engineering Public Company Ltd, Ha mmond Power Solutions, Holec Resitra, IMP Power Ltd, Kirlosker Electrical Ltd, Kuhlman Electric Ltd., Nissin Electric Company, Schneider Electric SA, Siemens, Shihlin Electric & Engg Corporation, Smit %ransIormatoren NV, %rnasIix, VA %ech Elin %ransIormatoren, and Waukesha Electric Systems. Rest oI World Historic Market Review Ior %ransIormers (Electricity) by product g roup/segment 500-10000 KVA %ransIormers, 100001-30000 KVA, 30001-100000 KVA, and 1000 01 KVA %ransIormers Markets Independently analyzed with annual sales Iigures in units I or years 2001. 2.3 Indian scenario Heavy electrical company encompasses important industry sectors inc luding power generation, transmission and distribution equipments. %his also covers turbo gen erators, boilers, turbines, transIormers, switch gears and relays. %he perIormance oI this industr y is closely linked to the programmes oI the country. %he government oI the country has a n ambitious mission oI 'Power Ior all 2022 as per working group on the power Ior 11 th plan; a capacity addition oI 72000MW is required. %o reach wheel power, an expansion oI the regional transmis sion network and inter regional capacity to transIer power would be essential. %his will stim ulate substantially demand Ior heavy electrical equipments. %here is a strong manuIacturing base Ior the manuIacture oI heavy electrical equipments in the country. %he technology avail able in India is almost at par with in the international market barring Iew areas oI the high voltage lines. However, items like CRGO steel and amorphous cores Ior low loss trans Iormers are being important. In India transmission and distribution system is a three tier structur e comprising distribution networks, state grids and regional grids. SEB`s are vertically integrated as int ra state distribution networks and the grids are owned and operated by SEB`s. the transmission and sub transmission systems supply power to end consumers. Distribution oI power to end consumer is lonely controlled SEB`s and licensees in the private sector. Most oI the interstate tra

nsmission links are owned and operated by power Grid Corporation oI India Ltd. %he present buoyancy in Indian economy would create demand Ior the electrical pr oduct through industrial growth and general economic development. %he power sector reIorms wil l create large business Ior power sector equipment manuIacturers and service providers. In the current Iavorable scenario, the electrical industry certainly looks Iorward to growth. India has a Iieldproven technology and capacity to manuIacture a wide range oI power transIormers , distribution transIormers and other types oI special transIormers. For welding, trac tion, Iurnace etc. %oday, about 95 oI the transIormers installed in the Indian Power Network are oI indigenous origin. Energy eIIicient transIormers with low losses and low noise levels can be available to meet international requirements. %he Indian transmission sector has evolved o ver time mainly on account oI improvements in technology and systems. %he power sector re Iorms are on a threshold oI major changes that would shape the Iuture oI industry. % he increased thrust on providing power Ior all through building additional generation capacitie s, improving transmission and distribution network would lead to a huge demand Ior power equipment manuIacturers. %he transIormer market in India is largely unorganized with very Iew organized p layers. %he key organized players in this segment are:O ABB O BHEL O Bharat Bijlee O EMCO O Vijay Electricals O Crompton Greaves O Areva %&D India O Indo %ech %ransIormers limited 2.4 State scenario Major players in Kerala are: Intrans Electro Components Pvt. Ltd. is an Electrical equipment manuIacturing P rivate Limited Company, providing the entire range oI High %ension 11KV equipments Ior the Industries and other commercial establishments. %he products manuIactured are Ca st Resin %ransIormers, Unitised Sub Stations, Load Break switch Metering Panels, Epoxy Cu rrent %ransIormers, Potential %ransIormers and epoxy moulded components. %he company h as a rich heritage oI 25 years and is a leading brand in the Kerala Market. %he products are manuIactured under stringent quality control standards. %o diversiIy the product range, the p romoters are putting up the second manuIacturing unit at Aluva, Cochin, Kerala, India. %o cat er to the ever

growing demand in other markets an additional GreenIield plant is being establis hed in %umkur, Karnataka. All the leading construction groups and Iactories are the esteemed cl ients oI Intrans. %he Iactory is well equipped with the latest machineries, Vacuum Oven and materi al handling Iacilities to manuIacture the above products.%he testing Laboratory is Iully equ ipped with all mandatory testing equipments along with Partial discharge %esting equipment and separate source withstand %est Equipment (Power Frequency %est) up to 150KV. Intrans %ransIormers have been tested at CPRI Bangalore Ior an impulse voltage t est oI 95KV (Peak) and all transIormers are manuIactured to that standard. Intrans employs h ighly skilled workmen to manuIacture products having high quality oI workmanship. Resi Tech has been in the activity oI manuIacturing Epoxy resin cast switch gear components, Hi-tension current transIormer and potential transIormers Ior more than 20 years and has been enjoying a good reputation among the electrical consultancy, contractors, and in dustrial establishments. %he products manuIactured are oI high standards and quality and well accepted in the market. %he Iactory is well equipped with the latest machineries vacuum o ven material handling Iacilities to manuIacture the above products. Add more contents

Chapter 3 Company Profile

Kerala Electrical & Allied Engineering Company Ltd. (KEL) is a multiIaceted comp

any Iully owned by the State government and was established in 1964. %hrough its Iive prod uction Iacilities, located in various districts oI the State, this ISO 9001: 2000 compl aint company provides basic engineering services / products besides executing projects oI nat ional signiIicance Ior high proIile clients like the various deIence establishments. KEL is one among the largest, most vibrant and productive Public Sector Undertak ing, and is Iully owned by the Government oI Kerala. A multi-product engineering company, consistently catering to an envious client base, ranging Irom the army and air I orce oI India to world-renowned space research organizations, highly competent engineering compan ies to mammoth institutions likes the Indian Railways. %he company with Iour state-oI-t he-art manuIacturing units spread across Kerala has a pan India presence with marketing oIIices in major metros and select cities. 3.1 Vision %o be a globally recognised enterprise committed to enhancing stakeholder value by providing world class engineering and power system solutions 3.2 Mission To achieve our vision by: O Applying state-oI-the-art technology, processes and innovative solutions O Building long term relationship with stakeholders in an environment oI Iair bu siness ethics and values O Creating value through sustainable and proIitable growth O Leveraging productivity through highly motivated and empowered team 3.3 Units Company has Iive manuIacturing units located in various parts oI the state. 3.3.1 KEL Train Lighting Alternator Division, Kundara, kollam Inception: 1964 Technical knowhow: EVR oI France Product range a. Stanodyne Brushless alternators used Ior lightning and air conditioning oI railways coaches. b. 12 KW alternators specially designed Ior powering Janasadabdhi express trains oI Indian railways. c. Inductor type brushless alternators Ior automobiles and Ior charging systems in diesel engines. d. High Irequency alternator 400 Hz e. Ground power units Ior starting and powering Boeing aircraIts. I. DC, AC, power Irequency and high power pack Ior missile Iiring auxiliary powe r support. Top customers a. Indian Railways, b. BHEL, c. Crompton Greaves Ltd., d. BEML, R & DE (Engineers), Pune e. BDL Hyderabad. 3.3.2 KEL LT Switch Gear Division, Olavakkod

Inception: 1977 Technical knowhow: UNELEC oI France Product range a. Fuse Switches b. Changeover Switches c. Porcelain Fuse Units and Cutouts d. Distribution Iuse boards and industrial type switch boards e. Distribution Boards (SPN & %PN 2 to 16 ways) Top customers a. KSEB (Re-wirable Fuse Units), b. Other Units oI KEL (Al / Bronze Castings) 3.3.3 Transformer Division, Mamala Inception: 1969 Technical knowhow: BHEL Product range a. Distribution %ransIormers oI ratings upto 3,000 kVA, 33 kV class oI types su ch as oil-Iilled and resin impregnated dry type; on load tap changing with Automati c Voltage Regulation. Top Customers a. State Electricity Boards b. Government Departments c. Public and Private Sector Companies 3.3.4 Structural Engineering Division, Mamala Inception: 1969 Product range a. Hydraulic gates, b. Hoists and controlling equipment. c. Fabrication oI structural steel. d. Railways bogies. Major Projects Undertaken a. Gerusoppa Dam, Karnataka Ior Karnataka Power Corp. Ltd. Hydro-mechanical works Penstock, stoplog gate, gantry crane, hoist b. Upper %unga, Karnataka Ior Karnataka Neeravari Nigam Ltd. Radial gates, rope drum hoists, stoplog gate, gantry crane c. Mansi Wakal, Udaipur, Rajasthan Ior I%D Cementation India Ltd. Radial gates, vertical gates, stoplog gate, hoists d. Narmada Project Ior J P Associates Slide gates e. Bogie Irames Ior BFA% Wagons Ior BEML I. Bogie Irames Ior EMU Coaches Ior ICF %he KEL Mamala has two production units; 1. Transformer division 2. Structural division Transformer division has gone on stream in 1968.%he transIormer division oI KEL has been Iacilitating the manuIacturing oI medium power transIormers.KEL is the largest p roducer oI distribution transIormers in India. %he distribution and medium power transIorme rs produced by KEL will have capacity up to 3000 KVA to 33KV class with an annual production ca pacity oI 600000KVA.KEL transIormers have acquired approvals Irom National %est House, var ious state electricity boards and power corporation in India have approved the transIormers

. Major product ranges oI this division are:O Oil Iilled circuit distribution transIormer O Oil Iilled on load tap changer(OL%C).%ransIormers with automatic voltage regulator(AVR) and remote tap changing cubicle(R%CC). O Oil Iilled autotransIormer. O Oil Iilled amorphous core transIormer O Dry type transIormer(resin impregnated) O Unitized substation with oil Iilled and dry type transIormer Structural division Iacilitates the Iabrication, commissioning and designing oI Hydraulic control gates and hoists Ior power and irrigation projects, cranes, pressure ves sels and other industrial structures. %he main clients are Indian railways, Dam projects etc. % he concerned clients have inspected these projects. %he division has a team oI proIessional engineers, technicians and other employe es with adequate experience Ior perIorming, designing, Iabrication and erection. 3.4 Product range of KEL Company 3.4.1 Transformer Division Mamala Unit , Distribution %ransIormers oI ratings upto 3,000 kVA, 33 kV class - oI types su ch as oil-Iilled and resin impregnated dry type; on load tap changing with Automati c Voltage Regulation. b. Future-ready Product Range: Resin Cast Dry %ype, Special Application %ransIormers such as EMU, LOCO, Dynamic Reactive Power Compensation and Furnace %ransIormers. 3.4.2 Structural Engineering Division Mamala Unit. a. Design, Iabrication and commissioning oI hydraulic gates and hoists and their controlling equipment. b. Design and construction oI steel bridges, Iactory buildings, storage tanks, Iabrication oI pressure vessels and other industrial steel structures. c. Fabrication and manuIacture oI bogie Irames, bogie bolster, head stocks Ior railway coaches and wagons. 3.4.3 Train Lighting Alternator Division Kundara Unit. a. Inductor type brushless alternator Ior train lighting and air-conditioning -1 kW to 40 kW. b. 12 kW alternators specially designed Ior powering Janashatabdi Express %rains oI Indian Railways. c. Inductor %ype brushless alternator Ior automobiles and Ior charging systems in diesel engines - 12 V, 24 V upto 50 A. d. High Irequency alternator - 400 Hz; upto 100 kVA. e. Ground power units Ior starting Avro and Dornier aircraIts and Ior powering Boeing aircraIts. I. Ground Support units with dual voltage system Ior starting Iighter aircraIts . DC, AC power Irequency and high Irequency power pack Ior missile Iiring

auxiliary power support.

3.4.4 LT Switchgear Division Olavakkod Unit. a. b. c. d. e. Fuse Switches Changeover Switches Porcelain Fuse Units and Cutouts Distribution Iuse boards and industrial type switch boards Distribution Boards (SPN & %PN 2 to 16 ways) 3.5 Capital Structure KEL has 40000000 equity share oI Iace value oI Rs. 10 each. %he issue subscribed and paid up shares is 3405937. It is Iully paid up shares. %his include 6032350 equi ty share held by Kerala State Industrial Enterprises Ltd. And 317443 equity share allotte d as Iully paid up Ior consideration other than cash. 3.6 Market Potential In all India level, KEL will be contributing to 2 need when its prod uction is 100. In the state level, KEL`s marketing potential is around 35-40 oI the market requirement. Further in India, the power requirements are always on the rise. %he government has also I rom time to time sets some targets to achieve regarding the power generation, tran smission and distribution. %his in turn boosts the market potential Ior KEL`s products. 3.7 Competitors In the national level, the main competitors oI KEL %ransIormers are K irloskar Bangalore, Indotech Chennai and Cromton Greaves Chennai. In the state level, Intr ans Ernakulam and %ELK Angamaly are the main competitors. 3.8 Overseas Partnership As a company in tune with modern technology the company have had associated with reputed overseas manuIacturers who are experts in their respective Iields. PRODUCT TECHNICAL KNOW HOW General purpose brushless air conditioning generators MO%EURS LEROY SOMER,FRANCE Induction brushless alternators Ior lighting and air conditioning oI rail coaches EVR,FRANCE HRC Fuses UNELEC,FRANCE Table 3.1 3.8 Projects %he main projects done by KEL are :Project Name Client Nature of work Falcon Missile Project R&DE (Engrs.), Pune Vehicle mounted 62.5 kVA, 415 V, 50 Hz, 3-phase DG set %hrisul Missile Project DRDO 50 kVA Dual Output DG Set Prithvi Missile Project R&DE (Engrs.), Pune 2 kW, 3000 rpm DG set Pinaka Project L&% 8 / 12 kW, 30 V, 400 A Alternator Akash Missile System BEL 75 kVA, 220 V, 400 Hz Battery

Power Source Vehicle Military Power Car Army Battery Chargers oI Battle %anks General Air Force 20 kVA, 415 V, 50 Hz, 3-phase alternators General Army 30 kVA, 220 V, 50 Hz, 3-phase alternators General Air Force 125 kVA, 415 V, 50 Hz, 3-phase alternators Radar Application Air Force 100 kVA, 220 V, 400 Hz, 3-phase alternators Radar Application Air Force 250 kVA, 400 V, 50 Hz, 3-phase alternators Power Cars oI Rajdhani & Shatabdi Express %rains Indian Railways 500 kVA, 750 V and 250 kVA, 750 V alternators Ground Power Unit DeIence 70 kVA %rolley mounted Ground Power Unit Ground Power Unit Airlines 75 kVA, 400 Hz Ground Power Unit Ior Boeing 737 Antartica Expedition Indian Navy 10 kW, 400 Hz, alternator %raction Alternator BHEL / Railways 200 kW %raction Alternator Medium Power %ransIormer Nuclear Power Corporaton, Kudankulam, %amil Nadu 3000 kVA, 11/6.3 KV %ransIormer Medium Power %ransIormer %ranvancore %itanium Products Ltd., Kerala 2000 kVA, 11/ 0.433 V OL%C %ransIormer Unitised Sub-station Guruvayoor Dewasom 160 kVA, Drytype packaged Substation Gerusappa Dam, Karnataka KPCL Hydro-mechanical works Penstock, stoplog gate, gantry crane, hoist Upper %unga, Karanataka KNNL Radial gates, rope drum hoists, stoplog gate, gantry crane Mansi Wakal, Udaipur, Rajasthan I%D Cementation Radial gates, vertical gates, stoplog gate, hoists Narmada Project, Gujarat J P Associates Slide gates Table 3.2

ORGANISATION CHARTKEL MAMALA UNIT

I.

Fig 3.1

kMCM kM1Mn /kML1 kM1 kMMS kMCA kM1Mnu kML1u kM1u kM1u kMMSu kMMSu kMCAu kMCAu kMMSu kMMSu

II.

Fig 3.2 kMCM kM1uS

kM1Mu kM1Mu kM1Mu kM1Mu kM1M kM1uSu kM1uSu kMSM/ kMLS kMSMu kMSM kMuS kMLSu kMLSu kMLSu kMLSu kMuSu kMuSu

III.

Fig 3.3

kMlAu kMlA kMA kMCM kMAu kMAu kMlAu kMlAu Departments/ functions KMGM - Head Mamala KMQA - Quality/ Head quality KMPA - Personnel and Administration/ Head P&A KMPL% - Planning, %ransIormer Division KMPLS - Planning, Structural Division KM%M - %ransIormer Marketing/Head %ransIormer Marketing

KMSM KMMS KMFA KM%P KMSP

Structural Marketing/ Head Structural Marketing Materials/ Head materials/sub-contract, production-%ransIormer Finance and Accounts/Head F&A %ransIormer production/ Head %ransIormer production Production and installation/ Planning & sub-contract/ Head Structural production KM%DS - %ransIormer Design/ Head %ransIormer Design KMSDS - Structural Design/ Head Structural Design KM%MN - Maintenance/ Head Maintenance

For the purpose oI documentation, the Iollowing codes and short terms are used t o denote authorities, that prepare approve, and issue documents. CODE DESIGNATION SHORT NAME GM Head, Mamala KMGM MR KMMR KMMR QA Head, Quality KMQA %M Head Marketing-%ransIormer KM%M SM Head Marketing-Structural KMSM %P Head %ransIormer- Production KM%P SP Head Structural Production/Planning KMSP %DS Head Design &Development-%-Div KM%DS SDS Head Design &Development-S-Div KMSDS %MN Head Maintenance KM%MN PA Head Personnel &Administration KMPA FA Head Finance & Accounts (F&A) KMFA MS Head Materials &Stores/Sub-contract/ KMMS Production PL% Head Planning %-Div KMPL

Kerala Allied Electrical and Engineering Company Ltd. Balance Sheet (Rupees) PARTICULARS AUDITED 2006-2007 2007-08 2008-09 2009-10 I.SOURCES OF FUNDS 1. SHAREHOLDERS FUNDS a. CAPI%AL b. RESERVES AND SURPLUS 2. LOAN FUNDS c. SECURED LOANS d. UNSECUERD LOANS

A B

C D

TOTAL II. APPLICATION OF FUNDS 1. FIXED ASSE%S a. GROSS BLOCK b. DEPRECIA%ION c. NE% BLOCK d. PROJEC%S WORK IN PROGRESS 2. INVES%MEN%S

F G

713780770 36567828 750348598 209428534 265873914 475302448 1225651046

254068195 224219307 29848888 56033095 85881981

871480770 36567828 908048598 192959960 101580795 294540755 1202589353

256277942 232052307 24225635 58855338 83080973

871480770 36567828

908048598 186649000 111582058 298231058 1206279656

258277942 236184307 22093635 61355338 83448973

871480770 36567828 908048598 168603000 140083321 308686321 1216734919

264844942 239133307 25711635 61355339 87066974 3. CURREN% ASSE%S,LOANS & ADVANCES LESS:CURREN% LIABILI%IES AND PROVISIONS NE% CURREN% ASSE%S 4. a. DEFERRED REVENUE EXPENDI%URE b. PROFI% AND LOSS A/C TOTAL NET WORTH 50000 516890816 339226921 177663895 P H I

17722200 944332970 1225651846 -193984372 50000 586865504 375547194 211318310 881100 899328970 1202589353 8719628 50000 682313331 433687618 248625713 0 874154970 1206279656 33893628 50000 735589711 466158338 269431373 0 860186572 1216734919 47862026

Kerala Allied Electrical and Engineering Company Ltd. . Profit and Loss Account PARTICULARS SCH AUDITED PROVISIONAL 2006-07 2007-08 2008-09 2009-10 INCOME: SALES, WORKS CON%RAC%, JOB WORKS AND MISCELLANEOUS INCOME INCOME/ (DECREASE) IN S%OCKS TOTAL EXPENDITURE: MA%ERIALS CONSUMED M IN%ERES% & BANK CHARGES N O%HER EXPENSES DEPRECIA%ION DEFERRED REVENUE EXPENSES WRI%%EN OFF

(Rupees)

K L

O E

834691768 -83857884 751033884 378440436 44599247 343443559 12195851 8911102

1010336000 26461554 10367975554 584693000 41938000 348418454 7833000 8911100

106109000 6176000 1067195000 607370000 47729000 3739789000 4132000 8911100

1056451000 -18981000 1037470000 614007000 49094000 357451602 2949000 0 TOTAL (LOSS)/PROFI% FOR %HE YEAR (LOSS) BROUGH% FORWARD FROM LAS% YEAR (LOSS) %RANSFERRED %O

BALANCE SHEE% 787590195 -36556311 -907776659 -944332970 991793554 45004000 -944332970 -899328970 1042021000 25174000 -899328970 -874154970 1023501602 13968398 -874154970 -860186572

Chapter 4 Departmental Details

4.1 Personnel and Administration Department %he personnel and administration department is a supporting section which plans and provides manpower to all other subsystems oI the organization and to itselI by Iormulatin g proper recruitment and training programmes. It also monitors the perIormance oI the emp loyees Ior better direction, promotion and results. %he personnel department is responsible Ior recruitment, selection, placement, training, perIormance appraisal, welIare compensation and promotion. 4.1.1. Policies i. %o establish and maintain a system Ior imparting knowledge, skill and motivat ion ii. Enabling employees to carry out various tasks to achieve organizational obje ctives. iii. Impart suitable training and development to the employers as well as employ ees iv. Impart training to optimize their skill and eIIiciency and to improve qualit y, productivity and human relations. %his procedure covers and action training on the job training, training required Ior qualiIying Ior process /saIe operations, developmental training Ior job rotation and enlargemen t/ awareness oI new concepts, quality management and quality system techniques, behavioral train ing and retraining in all these area due to changes in process technology/systems/strate gies. 4.1.2.Department Structure 4.1.3. Functions And Responsibilities 4.1.3.1. Functions of department i. Arranging preventive maintenance oI oIIice activities. Manager A Junior OIIicer Junior OIIicer ii. Updating data on saIely and environment requirement iii. Maintenance oI training identiIication records iv. Procurement oI right kind and number oI persons v. Co-ordination with other department/Iunction Ior sponsoring employees trainin g vi. In-house training management. vii. Employee welIare measures as per approved scheme/agreements viii. Industrial relations ix. Execution oI all policies related to personnel Iunction. x. Manpower planning xi. Maintenance oI personal Iiles/records xii. Issue circulation on training and other personnel matters. xiii. Correspondence with external bodies on statutory compliance xiv. Insurance matters on land, building, materials and products. xv. General insurance including employees medical and accidents insurance xvi. Promotion oI employees as per policy and as per agreements. xvii. Sanctioning oI annual increments to employees, keeping records and registe rs 4.1.3.2. Functions of Manager i. Personnel planning Ior the Iuture

ii. Proper utilization oI resources iii. Preparation oI training schedules iv. Organizing by setting up the structure oI relationship among jobs, personnel and physical Iactors to contribute towards organization goals. v. Mobilization oI talented personnel vi. Determination oI adequate and equitable compensation to employees. vii. Ensure smooth running oI business without any grievance viii. Provide good working conditions and welIare services to employees. ix. Ensure growth and development 4.1.3.3 Functions of junior officer i. Legal matters, keeping records oI cases at diIIerent court etc. ii. Mediclaim recording, claim settlement with united India Insurance Company correspondence with insurance department. 4.1.3.4. Clerk i. %ime keeping and recording oI oIIicers, staII, apprentices and temporary empl oyees ii. Arrangements oI taxi, preparation oI bills etc. iii. Arrangement oI remittance oI tax, insurance oI co-vehicles. iv. Issuing gate passes to contract workers v. Remittance oI contribution, maintenance oI all records vi. Reports oI accidents, recording, keeping register. vii. Intimation oI recovery/ attachment oI salary by courts/Kerala State Financi al Enterprise/ bank etc. viii. Issue oI certiIicates ix. Leave surrendering, keeping records x. Preparation oI alternate bonus xi. Canteen recovery and recording 4.1.4. Programmes and procedure 4.1.4.1. Recruitment Recruitment is the process oI searching Ior prospective employees and stimulatin g them to apply Ior jobs in the organization. For this, the company has adopted diIIerent method s. KEL is having a Centralized Recruitment System. %he recruitment and selection proceedings are conducted at the head oIIice oI the company. %he main advantage is i. It ensures eIIective and suitable placement oI candidates ii. %he cost oI recruitment per candidate iii. Unit managers will not be disturbed by this type oI recruitment. %he company has diIIerent methods Ior recruitment. %he main sources are: 1. Advertisement %he major recruitment is done through the advertisement. %he advertisements are given in local or national press, trade or proIessional journals. %he recruitment oI t he job is given in the advertisement. Management gets a wider range oI candidates Ior sele ction through the advertisement. 2. Employment exchange %he company has also recruited employees through this method. %he vacancies may be noticed with the exchange, whenever there is a need. %he exchange supplies a lis t oI candidate IulIilling required qualiIication.

3. Public Service Commission Some oI the staII`s such as junior assistant, Ioreman, stenographer, driver etc. are Iilled through the test conducted by the Public Service Commission among the eligible candidates. Commission notiIies speciIic vacancies by the way oI newspapers, employment news. 4. Trade unions %he KEL Mamala has also recruited employees and staII through the mutual agreeme nt between the trade union and management. %here are three recognized unions in KEL , they are KEL Employee Congress, KEL Employees Union and KEL Employee Association. 4.1.4.2 Selection and training 4.1.4.2.1 Selection 'Selection is the process oI diIIerentiating between applicants in order to iden tiIy (and hire) those with a greater likelihood oI success in a job. %he head oIIice oI the compa ny selects the right person Irom the advertisement. %he criterion Ior evaluation is perIormance , experience and qualiIication oI the candidates. AIter that the interview is conducted on the ba sis oI the result oI interview, the selection is made.

4.1.4.2.2 Training '%raining is the act oI increasing the knowledge and skill oI an employee Ior do ing a particular job. In KEL Mamala two types oI training are given to employees 1. On the job training: Given to the clerical and other staII`s 2. OII the job training: Given to the managerial staII and workers oI the produc tion plant. 4.1.4.3 Transfer and Promotion Transfer %he selected staII can be transIerred to diIIerent units, where the s taII is needed. %he transIer does not involve any change in rank. It involves shiIting oI persons Irom the pr esent jobs to other similar places or diIIerent places in the same job. %his does not in volve any change in responsibility and prestige. %ransIer and promotion are dealt by the h ead oIIice. %ransIerred promotions are done on the basis oI the mutual agreement between the union and management. %ransIer and promotion will be made against vacant posts whenever suitable candi dates with the prescribed qualiIication and experience are available within the organiz ation. But when the suitable candidates are not available, then the post will be Iilled u p Irom the external source. While oIIering promotion to higher post, reservations are made Ior SC/S%. Promotion It involves shiIting oI persons to position carrying better prestige, higher res ponsibility and more salaries. %he higher positions may be Iilled up Irom within the organization. It

is purely made on the basis oI perIormance, qualiIication and experience. Seniority is al so an inevitable Iactor. %here is a promotion policy Ior the company. It is usually Ior oIIicers.

4.1.4.4 Performance appraisal system PerIormance appraisal includes the identiIication, measurement and manage ment oI human perIormance in organization. Assessment and motivation can motivate the workers to improve their perIormance. But in this organization there is no type oI perIormance app raisal system Ior employees at lower levels. OIIicers are given promotions according to the promotion policy rather than perIormance. 4.1.4.5 Shift timings %he shiIt timings oI employees in KEL are: i. Administration StaII 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 4.1.4.6 Punishment and misconduct An employee guilty oI misconduct may given any one oI the Iollowing punishment s depending upon then gravity oI the misconduct. i. Warning ii. Stoppage oI increment iii. Withheld oI Iuture promotion or grade iv. Discharge Irom the service v. Dismissal %he Iollowing shall be the procedure Ior punishment A charge sheet will be given to the employee concerned and he will be asked to give his explanation in case oI alleged misconduct primaIacie appears to be oI a serious nature, suspension pending enquiry. In other case the management will decide whether a I ormal enquiry should be conducted, and iI the decision is Ior an enquiry it will be conducted. %he management on receipt oI the explanation, issue notice to the receipt or in the absence oI the reply or the expiry oI the date by which the reply is called Ior, the management will pass su itable orders. %his process will be applicable only in cases were punishments are ei ther reduction oI rank, removal, or dismissal. In other cases, the management shall pass such orders which may be appropriate on receipt oI the employee`s explanation. 4.1.4.7 Manpower %he company has 101 skilled workers, 52 semi skilled workers, 12 special skilled workers. StaII

and security are 44 and 43 managerial persons as on 31 st march 2011.

4.2 Finance and Accounts Department Finance department regulates the Iinancial transactions oI the company. %he Iina nce Iunction provides authorization and control to all the subsystem to utilize money more eI Iiciently through a well designed mechanism the company prepares proIit and loss accounts, balance sheet, budgets, Iinancial perIormance statement, and employee cost analysis etc. Ior th e Iindings oI the operating results, Iinancial positions, Iuture prospects and many oI other objec ts. Statement oI operating results derives the perIormance oI transactions. %his reveals the prob ability oI the concern during the year. %he proIit oI the company increases year aIter year. 4.2.1 Department Structure 4.2.2. Functions of finance department Finance department oI the company constitute the accounts and administration and cash management. i. Auditing and Iinalization oI works with the assistance oI all other members o I Iinance department. ii. All the accounts relating to personal. iii. Accounting oI purchase bill. iv. Preparation oI payrolls. v. Accounting oI bank and cash transactions vi. Calculation oI central excise AssL Manager Executive Iinance Asst Accounts oIIicer Asst Accounts OIIicer vii. Sales accounting and sales tax matters. 4.2.3. Functions of finance manager i. Estimation oI capital requirements ii. Ensuring a Iair return to the investors iii. Make sure the suitable availability oI Iunds iv. Laying down the optimum and suitable capital structure Ior the company v. Adequate control oI cash Ilows. vi. Preparation, analysis and interpretation oI Iinancial statements vii. Facilitate maximum utilization oI Iund viii. Scrutinize claims and recommend payment ix. Issue oI invoices against dispatches 4.2.4. Programmes and Procedure 4.2.4.1. Accounting policies of the company 1. Accounting conventions %he Iinancial statements are prepared under historical cost convention on accrua

l basis and in compliance with the Companies Act 1956 2. Fixed Assets Fixed assets are stated at cost less depreciation. Assets and liabilities are co nsistently being recorded at historical cost. 3. Depreciation a. Depreciation on Iixed assets has been provided as per the rate indicated in schedule XIV oI the company`s act 1956 under written down value method. b. Extra shiIt depreciation Ior double shiIt working has been provided in the account. c. Depreciation on Iixed assets in respect to the project work in progress has n ot been kept in abeyance as per government direction. 4. Inventories a. Finished goods are valued at cost or market price, whichever is less Ior arri ving at the cost and excise duty is also taken into consideration. b. Work-in-progress is valued at the cost aIter considering overheads excluding Iinancial 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 oI goods and service and includes Excise duty b. Price valuation claims on sales aIIected are accounted Ior on accrual basis c. %he reprocessed transIormer oil is accounted at current purchase prices by cr editing the diIIerence to miscellaneous income. 6. Consumption a. Loose tools issued to shop Iloor are treated as consumed and written oII as s uch. b. Consumption oI materials Ior production is completed on a derived basis 7. Retirement benefits Gratuity and leave encashment are accounted Ior on accrual basis in compliance w ith accounting standards. %he amount was determined on the basis oI actuarial valuat ion conducted at the end oI the year. As non cumulative portion oI leave encashment is not applicable to the company the same is not considered. 8. Liability on material in transit %he liability on account oI the bank charges and other expenses on materials in transit on the date oI closing is accounted on accrual basis. 9. Research and development Capital expenditure on research and development is treated as addition to Iixed asset and revenue expenditure on R & D is charged to proIit and loss account under appropr iate heads in the year in which it is incurred. 10.Contingent liability Contingent liabilities are not provided Ior, but disclosed in note on accounts. 4.2.4.2. Accounts and documents %he company shall in compliance with sec.209 oI the company Act clause to keep p

roper books oI accounts with respect to: i. All sums oI money received and spent by the company and matters with respect to which the receipt and expenditure take place. ii. All sales and purchase oI goods by the company iii. %he assets and liabilities oI the company. 4.2.4.3. Sources and uses of funds %he Iinance manger oI the company collects Iunds through the sales oI the produc t Irom the head oIIice and other sources. %he unit manager has a limit to deal with the Iund, wh ich is limited to Rs. 2000000 over the limit he needs the permission Irom the corporate oIIice oI the company. Payroll or salary administration is an inevitable Iactor oI the Iinance departme nt. %he salary administration is conducted in two ways i. For employees and clerical staII under Industrial Dispute Act ii. For managerial staII under Kerala Government Department rule 3. For employees and clerical staff under ID Act. %he salary oI employees includes basic pay, dearness, Fringe beneIits (Attendanc e allowance or milk allowance), night shiIt allowance, washing allowance, risk allowance and ov er time allowance. %he net result Iorms the 'gross salary. Fringe beneIits are the allowance which includes the attendance allowance/milk a llowance. It is available to the employees based on the agreement between management and trade u nion. %he period oI agreement is Iour years. For the Iringe beneIit attendance is taken Ir om 16 th oI the month to the 15 th oI the next month. Working time per day is 8 hours. Charges oI attendance allowance are Rs.2.50 per day Ior an employee. In the calculation oI basic pay and dearness allowance, the attendance is taken Irom the 1 st day oI the month to 31 st oI the month. Basic pay is based on the salary scale oI the company. Dearness allowance is an industrial dearness allowance or variable dearness allowance. It means, DA is changing every month. %his change depends upon the point diIIers every month and also, it is diIIerent to various companies and diIIerent units oI the same company. Rs.5 is charged Ior per point Over time allowance (O%) is provide to the employees, who undertake the over tim e work. For the calculation oI overtime, the attendance is taken as the 16 th oI the month to 15 th oI the next month. Working time per day is 8 hours. %he over time charge is calculated by us

ing the Iollowing Iormulae: (Basic pay DA x 2*30)/(30 days * 8 hrs) a. Provident fund(PF) According to the PF Act 1952, the PF contribution is deducted Irom the gross sal ary. Both the employee and the employer pay 4.75 oI his wages (i.e. basic pay and DA). %his PF contribution is Iorwarded to PF department. b. Employees State Insurance(ESI) %he ESI is contribution scheme, with the employer paying 4.75 oI wages and the em ployee contribution is 1.75 oI wages to the Iund. %he ESI Iacility avail the employees w ho has the salary up to Rs. 6500 per month. %he employee contribution is 1.755 oI the gross salarywashing allowance. %he net salary Ior employees and clerical staII by way deducting the total deduc tion Irom the gross salary i.e.. Net salary Gross Salary- total deduction For managerial staff %he salary scale and DA is Iixed Ior managerial staII based on Ker5al Government Department Rule. When the government declares certain rate oI DA to managerial staII, this will be distributed aIter the recognition oI board oI directors. II the board the permit s to the distribution oI DA, then that will be distributed to the managerial staII. Gross salary Ior m anagerial staII includes the basic pay, DA and HRA. %he deductions are made available to manager ial staII in the manner as oI the employees and clerical staII. i.e., Gross salary total ded uctions 4.2. Marketing KEL has adopted general Ieature oI marketing. %he product segment is directly co nnected with the customers: KEL displays advertisements in certain electrical journals only. %hey have reorganized regional centers in the various major cities. It also captures order s through canvassing order Ior it. 4.3.1. Policy '%o establish and maintain a process and procedure to obtain orders by identiIyi ng customer requirement regarding products and service 4.3.2. Department structure

4.3.3. Functions of marketing department i. Evolve adequate marketing policy. ii. Ensure the availability oI required orders. iii. Make competitive prices iv. Make sure the payment beIore dispatching the product. v. Provide aIter sales services to the clients. vi. Ensure the optimum utilization oI resources available to the company. vii. Reviewing enquiries, traders, contracts and contract amendments.

viii. Communicating with customers ix. Coordinating servicing x. Maintaining invoice register 4.3.4. Functions of DGM marketing i. Developing customer base ii. Reviewing enquiries, tenders, contracts and contract amendments iii. Communicating with customers iv. Internal communication on contract requirements v. Payment collection co-ordination vi. Coordinating servicing vii. Maintenance oI transIormers during guarantee period Iailure viii. Servicing oI transIormer aIter guarantee period against customer requireme nt ix. Prepare level B and level C documents x. Prepare contract amendment review reports xi. Prepare order acceptance/quotation xii. Prepare sale order/ sale order amendment xiii. Prepare estimate Ior tendering xiv. Prepare maintenance/ servicing reports xv. Maintain invoice register xvi. Register and resolve customer complaints through designated channels xvii. Initiate corrective and preventive actions 4.3.5. Programmes and procedures 4.3.5.1. Marketing process %he KEL collects the tenders Irom newspapers with speciIications. AIter collecting tenders, KEL prepares tenders document. %his document will be Iorwarded to the Design D epartment. %he company approves the tenders up to 25 lakhs. Above 25 lakhs, the head oIIice sanction or approval is required Ior the tender acceptance. AIter, this the unit submit comp etitors quotation with company's Iavor. II the submitted quotation is the best, they get the tende rs. %hen the company issues an order acceptance letter to the customers. AIter this, the marketing department that take part in production. Based on this letter, the de sign department prepares structural design and process design transIormers. %he material department purch ases or issues materials to production Iloor or to store. %hen the production is started. At the end oI the completion oI the production transIormers, Inspection and Disp atch Iunction are carried down. Sometimes, private customers like %ata %ea, Bombay S uburban Electrical Ltd; Eastern Curry Powder etc. conduct inspection at the production Iloor aIter the completion oI the production. %hen the dispatch is carried out with the speciIic ation oI the tenders. %he company also provides aIter sales services. %he company guarantees the product Ior a period oI 12 months Irom th e date oI commissioning or 18 months Irom the dispatch whichever is earlier. AIt er this period, the company will provide services on chargeable basis. %he company charges Rs.1500/per head Ior a day.

4.3.5.2. Marketing network KEL`s products are marketed by extensive networks oI marketing oIIicials located in all the major cities like New Delhi, Mumbai, Kolkata, and Bangalore etc. they prov ide all support services to the sales and marketing service to guarantee complete customer satis Iaction. %he KEL has a wide network oI regional oIIices, services and business centers locate d in most oI the major cities in India Ior eIIective marketing, and providing eIIicient aIter sales service. 4.4. Design Department %he design department draws the structural design oI the product processes Ior t he production department. Based on this design the transIormer is produced with the speciIicat ion oI the customer. 4.4.1.Policy '%o establish and maintain a process Ior an optimum design conIorming to custome r requirement and relevant standards within a speciIied time 4.4.2.Functions performed by the design department i. Receipt the sale order Irom transIormer marketing ii. %o ensure that the standards oI the design iii. Receipt oI tender documents Irom the transIormer marketing iv. %o ensure that the competition oI design work within a speciIied period oI t ime. v. %o ensure that the changes are adopted Irom time to time vi. Established and maintain the process Ior the design work within a speciIied period oI time. vii. Ensure that the Ieed back Iorwarded to transIormer production section. viii. Design planning, controlling and responsibility assignment, input and desi gn storage reviews. ix. Authorizing, designing, veriIication and initiating design changes x. Assign responsibility Ior designing xi. Approve design outputs Functional objectives O Reduction oI design errors and re-work O Computerization oI the design work at least by 25 and subsequent improvement. 4.4.3.Functions of DGM Design i. Design control ii. Design planning and responsibility assignment iii. Design input and design stage reviews iv. Authorizing design veriIication v. Initiating design changes vi. Quality design personnel vii. Sign design plan viii. Participate in contract review ix. Assign responsibility Ior designing x. Authorize review (veriIication oI outputs) xi. Approve design outputs xii. Assign product codes xiii. InterIace customer Ior design validation xiv. Release speciIication and drawings xv. Prepare activity completion record

xvi. Control drawing issues 4.4.4.Programmes and procedures 4.4.4.1. Design process O Obtain tender document Irom transIormer marketing. O Obtain estimates and technical speciIications Irom the transIormer marketing. Design I stage: Preliminary design for marketing quotation O Study the speciIications oI the product included in speciIic tender received I rom the marketing department. O Obtain current price oI raw materials and components Irom material department. O Make estimates Ior the product as per the technical speciIication Iurnished by the marketing department. O Send the cost and guaranteed technical speciIications to the marketing departm ent Ior tendering purposes. Design II stage: Actual design of product O Receipt oI sale order Irom transIormer marketing department O Issue oI advance intimation to production planning O Make the detailed design oI transIormers and drawings as per the order O Issue oI production drawings, speciIication and list oI drawings to planning O Feed back Irom the transIormer production section to design on time to time Io r manuIacturing the product with customer speciIication O Feedback oI test result Irom quality assurance test is normally conducted in t he presents oI the customer consultant or representative. %est results are to be re corded and kept in a Iile Ior Iuture reIerence by the design department. O Design change intimation to planning Irom design 4.5. Material and Stores Department KEL has a Material and Stores Department which purchases the materials Ior the company`s production. %his department is also known as Purchase Department. %he main Iunction oI this department is to make the purchase that is required Ior the productio n and administrative department. 4.5.1.Policy i. %o establish and maintain the process oI procurement oI right mater ial and services, at right time and at right price Irom approved vendors as per the production requir ement and those oI customers. 4.5.2.Objectives i. %o reduce interruption oI production due to delay in supply oI material. ii. %o reduce the purchase cost. %he Material Department ensures that good quality materials are purchased at re asonable price. %he company has an ideal material control system. KEL Iollows the ABC analysis I or the control oI materials. 'A' items are very important, because oI the high value and Ireque nt value analysis are required to avoid excess capacity. `B` items (intergroup items) ar e less important than A` items. C` value items are those which require minimum control maintain

ed at the minimum stock level. 4.5.3.Department structure uCM Manager Asst Engr Stores (%div&Sdiv) Clerk 4.5.4.Functions of materials and stores department i. Sub-contractors approval and codiIication ii. Purchase oI material iii. Storage and preservation oI purchased materials iv. Ensuring re-inspection oI store and products v. Release oI purchase order amendments vi. Control receipts and issue oI materials vii. Prepare monthly inventory statement 4.5.5.Functions of Deputy General Manager i. Receive the Purchase Requisition and initiating enquiries. ii. VeriIication oI sub-contractors evaluation report. iii. Preparing Purchase Committee proposals Ior items purchased to be a pproved by Corporate OIIice. iv. Preparation oI purchase orders and veriIication with the checklist and Iollo w up with supplier. v. IdentiIy the items Ior cash purchase. vi. Discharge material stores responsibility in his absence. vii. VeriIication oI invoices and bills Irom suppliers. 4.5.6.Functions of Manager i. Issue oI materials. ii. Counting/weighing oI material received/issued. 4.5.7.Functions of Clerk i. Preparation oI enquiries and receiving oIIers. ii. Preparation oI comparative statements, purchase committee proposals Ior item s to be approved by the purchase committee. iii. Maintaining Purchase Committee Approval Register. iv. Initiating purchase orders and Iollows up with the local suppliers. v. Coordinating with stores. vi. VeriIication oI suppliers` invoice/bills and recommending payment. 4.5.8.Functions of Stores in charge i. VeriIication oI documents such as lorry receipts, invoices transport copies o I invoices. ii. Receipts oI materials. iii. VeriIication oI quantity. iv. Preparation oI Goods Received Note. v. Intimating Quality and Assurance Ior incoming inspection and testing. vi. Intimate suppliers on rejections/short supply/excess supply. vii. Maintenance oI all Stores Registers. viii. Planning storage oI materials with proper identiIication. ix. IdentiIying shelI liIe item requiring inspection and preparing report on thi s Ior Quality and Assurance inspection.

x. Correlation oI documents in the case oI supplier is replacing a rejected lot/ supply materials in batches Ior the same purchase order. xi. Preparation oI monthly inventory statement. 4.5.9.Programmes and procedure 4.5.9.1. Purchase procedure Material purchase 1. Maintenance and structural division maintains and updates a master l ist oI purchased products/services within the scope oI this procedure. Such lists are approved by material department. 2. Material department documents and maintain purchasing requirements as guideli nes duly approved by the general manager. 3. Purchase is made Irom sub-contractors approved as per quality speciIication1. 4. Where purchases are required to be made Irom sub-contractors not wi thin the approved lists, such lists are approved by the General Manager through waiver notes. 5. Purchase activity is initiated against purchase requisition/purchase n otice Iorm user departments. 6. Purchase requisition is raised in respect oI requirements speciIic t o the production and purchase notice is raised in respect oI standard products Ior which r eorder level are identiIied. 7. %he mode oI purchasing such as inviting quotation and bid evaluation or d irect purchase is based on the documented purchasing requirements guidelines. 8. Purchase is authorized by a committee consisting oI GM, Material Finance and Accounts and the user department`s representatives. Depending on the assigned authority i n relation to value, where required the authorization obtained Irom the corporate oIIice through Purchase Approval Form. 9. %he particulars oI purchase committee approval are maintained in the Purchase Committee Approval Register. 10. On Iinalizing purchase on the basis oI guidelines/authorization, pur chase order is raised and purchasing data is veriIied Ior their correctness by the designed personnel in the department. 11. A purchase order check list is prepared in evidence oI veriIying the purchas ing data. 12. %he purchase order is made in 6 copies. %he copies are made avai lable to Material, Quality Assurance, and Finance and Accounts Department. %wo copies are Ior retention with Maintenance and Structural division. 13. %he purchasing activities such as release oI purchase orders, progr ess in supply oI products and results oI receiving veriIication are recorded and monitored wi th the aid oI Purchase Monitoring Register Ior all purchase made in the structural d ivisions and Ior

purchase oI lamination, conductor and radiator and current %ransIormer Division. 14. %he purchase order is raised in respect oI purchase against already made aut horization. 15. Cash purchases are made without raising Purchase Orders, limiting value t o Rs.5000 on approval oI requisition cash purchases by materials. 16. Purchases by sub contracting process are made on the basis oI quality speciI ication. 17. VeriIication oI sub contracted jobs items are carried out by the sub contrac tor`s premises where so required. 18. %he veriIication oI purchased product is carried out as per quality speciIic ation and work instructions. When required contractually, customer is provided Iacility to veriIy purchased product at sub contractor`s premises or company premises. 19.%he purchase order released to sub-contractors clariIy veriIication r equirement either oI Quality Assurance or customer or customer`s agents. It is also clariIied to s ub contractor that veriIication by Quality Assurance/customer doesn`t absolve the sub-contract or oI his responsibility to provide acceptable product as well as company`s right and Iurt her veriIy products even aIter acceptance on receiving inspection and testing. Where purcha se order is required to be amended, either a purchase order amendment or a superseding pu rchase order is issued with same number oI copies and distribution as in above descript ion. Material receipt, storage preservation and issue Procedure:1. Stores in charge receive copies oI purchase orders Irom materials. 2. On receiving materials against purchase orders, the accompanying docu ments such as Lorry Receipt, Invoice, %ransport copy oI Invoice where applicable, %est certiIi cates and Bill oI Entry in case oI imports are veriIied by store keeper and it Iound in or der, items are received and entered in the Goods Receipt Register. 3. Security permits the carriers in to the company premises on veriIication oI d ocument and entering the veriIied details in the Register. 4. On receiving the %ransIormer Oil %anker, the store keeper prepares Goods Received Note (GRN) and passes to Quality Assurance. Only aIter it is passed by Quality Assurance, the oil is unloaded. 5. In respect oI other materials, storekeeper prepares GRN prior to inspection. 6. All received items are accounted as per Goods Receipts Register. 7. GRN prepared in 6 copies. 5 copies will send to Quality Assurance Ior carrying out inspection and testing and endorsement oI results. 8. Quality Assurance endorses the test status; retain 1 copy and Iorward 4 copie s to store in charge. 9. Materials received as barrels/drums, cartons carboys, bag, bundles, r

olls, sheets/rods/Ilats are handled either manually or using cranes. Mechanica l handling is controlled with the aid oI work instructions. 10.Oil received in tankers is transIerred to identiIy storage tanks by pipelines . 11.All material are secured as per storage plan, updated and authorized by mater ials. 12.Materials are stored in sub-stores attached to each production area. 13. %he storage plan indicates locations oI storage area oI steel item s on open yard, oil in tanks and sub-stores. 14. %he identiIication/status oI just received materials, passed/rejected materials and NC procedures are as per quality speciIication. 15. %he non-conIorming materials are controlled as per quality speciIication. 16. Only materials passed in receiving inspection are taken in to KARDEX. 17. Items held in storage Ior more than the speciIied period are subj ected to re-inspection and testing as per work instructions Ior re-testing oI stored products prepared by materials. 18. %he preservation oI product in storage is achieved by speciIying a ppropriate controls and application oI preservation as documented by Quality Assurance issu es oI stored items to the user departments/sub-contracted production is made against stores requisition/loan rate. 19. %he expiry date, where applicable is veriIied prior to issue. 20. %he quality oI %ransIormer oil held in tanks is assessed reIerring KARDEX/S tock and Issue Register. 21. Excess quality returns to the stores by used departments are accom panied with Store Return Note, Ior accounting in the KARDEX. 22. Items taken out Ior processes are returned and controlled with returnable ga te pass/gate pass Ior lob work. 23. Where stock is held in stores below the minimum/re-order level, purchase act ivities are initiated by stores in charge. 24. A monthly inventory statement is prepared and sent to Planning/Production/Fi nance and Account. 25. %he activities oI handling, storage, identiIication, control oI nonconIorming products and issue oI materials under positive recall procedure are carried out as per work instruction. Various records of materials department 1. Purchase Requisition 2. 3. 4. 5. 6. Purchase Purchase Purchase Purchase Purchase Notice Order Order Checklist Order Amendments Approval Form

7. Cash Purchase Approval Register 8. Purchase Committee Approval Register 9. Purchase Monitoring Register

4.6. Production Department %he KEL Mamala has one production department. It holds two department section, which are Planning section and Quality Assurance section. %he company has two pr oduction units which are 1.%ransIormer Unit and 2.Structural unit. 4.6.1.Department structure (Transformer division)

4.6.2.Functions of Deputy General Manager i. Production planning ii. Material planning iii. Monitoring progress against work order iv. Reporting on achievements v. Issue work orders vi. Issue work order amendments uCM8u1n 1ulv CPA8CL ln PAnuS MAnACL8 u1n LnClnLL8 u1n CL8A1C8S vii. Co-ordinate release oI drawings and bill oI materials 4.6.3.Functions of Manager O Analyze day-to-day production activities. O Scheduling oI work in advance.

O Work output with the agreed work norms. 4.6.4.Functions of Engineer O VeriIy production records on daily basis. O Complement the activities oI charge in hands. O Forwarding oI work allocation aIter veriIication and entering. O Arranging all types oI maintenance machines. 4.6.5.Functions of Charge in hands O Daily work arrangements. O Maintenance oI production records. O Arranging materials in advance as per production scheduled. O Arranging inspection by QA personnel wherever necessary. O Storing oI raw materials. 4.6.6.Functions of Operators O Production operators as per work norms. O Proper handling oI materials. O IdentiIication oI product at various levels.

4.6.7.Department structure (Structural division)

4.6.8.Functions of Deputy General Manager i. Overall management oI the respective division ii. IdentiIying resource requirements iii. Review oI non conIorming products iv. IdentiIying installation processes and control v. Scheduling production vi. IdentiIying training needs oI those reporting to them vii. Assigning personnel process wise viii. Maintaining working environment including saIety operations ix. Providing workmanship samples x. Controlling production processes xi. Corrective and preventive actions xii. Statistical techniques AssL englneer MAnACL8 u1n AssL Manager Charge hands uCM8u1n Sulv xiii. Servicing during deIect liability period and carrying out repairs against customer request 4.6.9.Functions of Manager

i. Receiving work order and allocate works to charge in hands. ii. Coordinating with planning and design department to get clariIication iii. Achieving production targets 4.6.10. Functions of Assistant manager i. Arranging work shiIt Ior carrying out the work. ii. Monitoring records and upkeep oI quality system in the shop. iii. Preparation oI weekly production report. 4.6.11. Functions of Assistant engineer i. EIIective utilization oI manpower working under them on day-to-day. ii. Reporting any problem aIIecting adversely to the production. Process inspection oI components preparing under the control. 4.6.12.Charge hands %he eIIective utilization oI the men and machine under their control. Drawing oI the raw materials Irom stores Ior the week. Reporting oI daily/ weekly production in time. ; %he proper Ieedback, iI any problem connected with the drawings/ production et c which adversely aIIect the production. 4.6.13.Planning section %he planning section holds the Iundamental Iunction oI planning Ior production. In this section, planning Ior each stage in transIormer production is planned based on sale order Irom marketing and design department. %he design department designs the stages Ior tra nsIormer division. %he materials department provided the materials in connection with sale order Irom m arketing. %hus the transIormer is produced is produced in a planned method. 4.6.13.1. Policy '%o plan, organize and co-ordinate the activities to achieve the planned product ion within the set time Irame to the needs oI the organisation. 4.6.13.2. Functional objectives i. %o avoid production delay due to procedure problem. ii. %o reduce inventory carrying cost with respect to turnover. iii. %o increase material availability with respect to turnover. 4.6.13.3. Major functions Transformer Division i. Raise purchase requisition ii. Issue work order iii. Materials Iollow up iv. Production monitoring Structural Division i. Production planning ii. Material planning iii. Shortlist sub-contractors iv. Preparation oI work order and amendment and maintenance oI work order and drawing Issue Register v. Monitoring oI Purchase Requisition vi. Initiating Purchase Requisition vii. Updating and preparation oI monthly production chart Ior the year viii. Float enquiries Ior sub-contract oI site work required Ior production and prepare comparative statement ix. Preparation oI work order x. Maintenance oI sub contracted product monitoring 4.6.13.4. Planning procedure Transformer Division i. On the basis oI the running contracts in hand and orders received,

planning %ransIormer Division Department prepares a tentative production plan Ior each month on the basis oI priority identiIied and discussed with General Manager indicating production planned cost and due date oI delivery in respect oI each project. Copies oI each plan are made available to GM, Finance and A ccounts Department, Production %ransIormer Division Department, Materials Departme nt and Design Department. ii. On receipt oI sale order copy relating to new orders, production plan revise Ior the month is prepared indicating material quantity and their value copies oI the rev ised monthly plan are made available by the authorities. iii. On receipt oI bill oI materials (advance inIormation) and drawings Irom design purchase requisition is prepared as a measure oI advance material plan ning and copy provided to material department. Purchase Requisition Iollow up Re gister monitors the Ilow oI purchase. iv. Based on the sale order drawings and bills oI materials, work ord er is prepared indicating particulars oI customer sale order number, drawing reIerences operations and work to be completed. v. %he issue oI work order is controlled with the aid oI Work Order Issue Regist er. vi. Work order amendments based on material change or other deviations will clea r by design department and issued where required and copies distributed. vii. Issue oI drawings to shop Iloor and sub-contract is co-ordinate an d controlled by planning with aid oI Drawing Issue Register. Structural Division i. On the basis oI running project or hand planning structured document budgetar y plan Ior the year indicating project wise materials and their value Ior inIorm ation oI GM and Design manager. ii. A tentative production plan is raised in each quarter on the basis oI priori ty identiIied and discussed with GM. Planning Structural Division made a plan indicating month s production are planned, cost and Iind requirement in respect oI each project cop ies oI plan are made available to GM, Finance and Accounts Department, Planni ngstructural Division and Stores Department. iii. On receipt oI sale order copy relating to new projects, production plan Ior the month is prepared indicating material quantity and the value. iv. On receipt oI bill oI materials and drawings Irom design departmen t, Purchase Requisition is prepared as a measure oI advance material planning and

copy is provided to monitoring through a Purchase Requisition Iollow up Register. v. On the basis oI sale order, drawings and bill oI material and work order i s prepared indicating particulars oI customer sale order no:, Drawing reIerence, o peration and work to be completed. %he reverse site oI that work order provides I acility Ior production oI raw materials Irom time to time. vi. %he issuance oI work order is contracted with the width oI work order Regist er. vii. Work order amendments on the basis oI material change or other d eviations as clearly by design. viii. At the close oI each week, a weekly production report is prepared and copi es made to planning structural division and Finance and Accounts Department Ior monitoring. ix. For the purpose oI Iacilitating the Iinancial audit a Register titled Prod uction Ior the month is prepared by Planning Structural Division, that production inIo rmation on project use total, quantity and value. x. Dispatches, work-in progress, cumulative sales and work-in progress at the en d oI the month. xi. Planning Structural Division documents order position is taken Ior the whole year in a register. Monthly chart is also prepared Ior comparative statistical projection oI varieties in achievements during diIIerent oI year. xii. Short Ialls in achievements again analyzed and inputs provided Ior corrective and preventive action by Planning Structural Division. 4.6.14.Quality assurance section 4.6.14.1. Policy '%o establish and maintain a quality system which will ensure incoming materials , in process sub-assemblies and Iinished products conIorming to the speciIication. 4.6.14.2. Functional objectives O Reduction in quality related customer complaints aIter delivery oI the product . 4.6.14.3. Structure

MC8 CA ASS1 MC8 CPA8CL ln PAnu SuL8vlSC8S

4.6.14.4. Functions of the section

O Arranging incoming material inspection as per quality plan O Arranging in process inspection at the SpeciIied Quality Assurance Checkpoints O Arranging testing oI Iinished goods at the Iactory or at site as and when requ ired O VeriIying and preparing consignment Audit Report O Arrange calibration oI equipment either house/with external agencies O Accepted and sign Goods Received Note Ior goods conIorming to speciIication O Issue non-conIorming reports O Sign observation sheets and certiIicates O Sign and issue assembly inspection reported and consigned audit report O Incoming materials inspection at the speciIied Quality Assurance Check points O Final testing oI transIormer O Conducting consigned audit reports 4.6.14.5. Functions of Manager O IdentiIying resources Ior inspection and testing O Planning requirements Ior quality O Planning requirements Ior inspection and measurement O Calibration monitoring, corrective and preventive action O Statistical techniques O Propose approval oI sub-contractors O Audit production sub contractors O Carry out subcontractor perIormance evaluation O IdentiIying non conIorming products O Stop Iurther processing oI in process non conIorming products O Release products to customers 4.6.14.6. Functions of Assistant manager O Accept and sign Goods Received Note Ior goods conIorming to speciIication O Issue non conIorming reports O Sign observation sheets and test certiIicates O Sign and issue assembly inspection reported and consigned report 4.6.14.7. Functions of Charge in hand/supervisor O Incoming materials inspection as per quality plan O In process inspection at the speciIied Quality Assurance Check points O Final testing oI transIormer O Conducting consigned audit reports 4.6.15. Programmes and procedure 1. ReIer Goods received note in respect oI received products as a cal l Ior receiving inspection and testing. 2. Inspection and test requisition is received Irom materials stores in respect oI materials held in store Ior more than the speciIied shelI liIe. 3. On the basis oI Goods Received Note requisition, sampling and testi ng oI speciIic materials are carried out by personnel as assigned by Quality Assurance. 4. %he responsible assigned person drawn samples and carries out testin g as per work instruction. 5. %he extent and nature oI receiving inspection and testing is determined on th e basis oI the class oI sub-contractors and availability oI test certiIicates. 6. %he result oI inspection and testing are recorded in Incoming Inspe ction report. %he sample sizes characterize to be veriIied and acceptance criteria adopte d as per Quality Assurance personnel endorses the results on Goods Received note/Requisition. 7. In case results do not conIorm to requirements a product non-conIormity recor

d is revised in triplicate and 2 copies Iorwarded to material stores. 8. II required General Manager as per assigned authority at the instan ce oI material stores reviews the nature oI non-conIormity and permits deviation by endorsing accepted on the Product non-conIormity Record. 9. II deviation is not permitted, REJEC%ED status is assigned and Rejection No te sends to the sub-contractor with a copy to Finance and Accounts Departments. 10.%he customer supplied products are subjected to receiving inspection and testing in the same manner as above unsuitable products are returned to customer under intimati on. 11.Materials held in storage beyond speciIied shelI liIe are re-inspect ed and tested as per work instructions. Production process and procedure Transformer division Process KEL manuIactures distribution transIormers and medium power transIormers with the capacity oI 600000KVM. %ransIormer Division has diIIerent stages in man uIacturing transIormers. In each stage one charge in hand controls the activities in that particular process. %he diIIerent stages are: Core Building In this stage the Irame is cut in the shape oI E`. Silicon steel is cutting with the E shape Ior Irame Iabrication. Insulation and Assembly %he insulation are done in core building, HV winding and LV winding. %he press board is used Ior insulation work. Insulation helps to overcome the occurrence oI short c ircuit. HV winding %he conductors are used Ior the high voltage coil winding. %he conduc tor is wounded or insulated with Double Paper Grade Strip. HV winding produces high volt age. %he high voltage electricity has to be transmitted to distribution. LV winding Here also conductors are used. Low voltage coil are wound with double paper grade strip. %his strip reduces the possibility oI short circuit. %his coil consists oI low v oltage electricity which comes Irom outside. In real process the IXth stage is core coi l assembly. %he core assembly, HV winding and LV winding are assembled in this stage. Terminal Gear Mounting %he LV winding terminals are Iixed in to a bush. %he terminal gear is built with copper or aluminum.

Tanking %he Iabrication tank has been made available through sub-contract or m anuIacturing the structural unit. %he dried %G mounted coils are put in the tank. %hen the tank h as to be Iilled with oil. %hen tightening take place. Final Testing When the production process is completed, Iinal test conducted by company superv isor. Painting and Dispatching %he Iinal stage is painting and dispatching the transIormer. Sometimes, in this stage customer can also inspect the transIormer. AIter the payment is made by the customer, dis patching the transIormer is done as the speciIication oI the tender. Production infrastructure %he inIrastructure needed to design, manuIacture and install products a s per customer requirements are identiIied and provided. InIrastructure includes buildin g, utilities, machines, inspection and testing devices, standards and codes, soItware and supporting dev ices. Preventive maintenance and upkeep oI inIrastructure is done Ior ensuring the capability oI the inIrastructure to meet the customer requirements. When there is a breakdown occurs, immediate corrective action will take. All statutory and regulatory requirements regarding t he manuIacturing and installation oI products and environmental regulations are duly compiled. Procedure 1. On the basis oI production plan Ior the month initially provided a nd update Irom time to time Irom by Planning %ransIormer Division based on work orders provided. 2. %he materials required Ior the production held in material stores a re drawn by producing the Stores Requisition against work order. 3. %he wage oI loading oI materials and sequence oI production operati on are carried out as speciIied in the process sheets/assembly checked sheet. 4. Operations oI machine/production process including settings and Iirst oI approval are controlled with the work instructions and by utilizing personnel oI required skills. 5. Updated master list oI personnel with specialized skill are approved by Planning %ransIormer Division are maintained by Production %ransIormer Division. 6. Production and labor allocation sheets duplicate are prepared and is sue shiIt wise daily to assign qualiIied personnel in relation to process. 7. Drawings/speciIications based on the work order are drawn Irom desig n and reIerenced during process:. Application codes and standards are reIerenced and Iollowed. 8. %he particulars oI shiIt production are recorded in the production

and labor Iorm, indicating the operator, operation carried out and the production output including labor time. A copy oI the Iorm is Iorwarded to Planning %ransIormer Division Ior monitoring productivity. 9. Stages Ior in-process inspection and tests are identiIied and carrie d out by Quality Assurance against assembly check sheet inspection and test stat us is assigned. 10. Daily production details are recorded in a daily Iinished goods re gister indicating work order wise production Iigures. 11. Details oI monthly production at various stages are recorded in pr oduction program Ior taking corrective action to maintain production. 12. On completion oI Iinal assembly testing and painting and on receipt oI dispa tch advice Irom %ransIormer Marketing, products are dispatched by preparing the delivery chelan. 13. Dispatches are accounted and monitored through a Dispatch Register indicatin g customers` name oI work order, data and mode oI dispatching items authorized by Quality Assurance are dispatched. 14. Achievements oI dispatches are received against plans short Ialls i I any analyzed Ior corrective and preventive action.

TRANSFORMER PRODUCTION PROCESS- FLOW CHART

LAMlnA1lCn CC8L 8ulLulnC 1Ank Lnu l8AML lA88lCA1lCn lnSuLA1lCn Cu11lnC ASSLM8L? WlnulnC CCnuuC1C8 WlnulnC llnAL 1LS1lnC 1AnklnC llnAL u8?lnC CA CPLCk 1L8MlnAL CLA8 MCuun1lnC CA CPLCk 8L8LAulnC lnl1lAL u8?lnC Aln1lnC uLSA1CP Structural division In this division, there are several machines. In each machine one gang is workin g. One gang contains three workers. %hese three workers are controlled by one charge in hand. A gang involves one welder, one Iitter and one unskilled worker. %he machine and i ts products are given: 1. Gear Hobbling Machine- it is used Ior gear cutting. 2. Milling Machine- slots, plane milling etc used Ior cutting 3. Lath Machine- Ior Iorming thread. 4. Vending Machine- used Ior 12 mm pipe bending. 5. Gillette Machine- Ior cutting the plate up to 12 mm. 6. Press Breaker Machine- plates blending 90 degree the capacity up to 12mm. 7. Drilling Machine- used Ior drilling the plates. 8. Mug welding- it is used Ior welding. Process a) Marking b) Cutting c) Drilling d) Bending e) Setting I) Welding g) SurIace preparation h) Straightening i) Painting j) keeping

Production Procedure 1. On the basis oI production plan Ior the month initially provided and update I rom time to time Irom by Planning %ransIormer Division based on work orders provided.

2. %he materials required Ior the production held in material stores a re drawn by producing the Stores Requisition against work order. 3. %he wage oI loading oI materials and sequence oI production operation are car ried out as speciIied in the process sheets/assembly checked sheet. 4. Operations oI machine/production process including settings and Iirst oI appr oval are controlled with the work instructions and by utilizing personnel oI required ski lls. 5. Updated master list oI personnel with specialized skill are approved by Planning %ransIormer Division are maintained by Production %ransIormer Division. 6. Production and labor allocation sheets duplicate are prepared and issue shiIt wise daily to assign qualiIied personnel in relation to process. 7. Drawings/speciIications based on the work order are drawn Irom desig n and reIerenced during process:. Application codes and standards are reIerenc ed and Iollowed. 8. %he particulars oI shiIt production are recorded in the production and labor Iorm, indicating the operator, operation carried out and the production outpu t including labor time. A copy oI the Iorm is Iorwarded to Planning %ransIormer Division Ior monitoring productivity. 9. Stages Ior in-process inspection and tests are identiIied and carrie d out by Quality Assurance against assembly check sheet inspection and test status is assigned. 10. Daily production details are recorded in a daily Iinished goods re gister indicating work order wise production Iigures. 11. Details oI monthly production at various stages are recorded in pr oduction program Ior taking corrective action to maintain production. 12. On completion oI Iinal assembly testing and painting and on receipt oI dispa tch advice Irom %ransIormer Marketing, products are dispatched by preparing the de livery chelan. 13. Dispatches are accounted and monitored through a Dispatch Register indicating customers` name oI work order, data and mode oI dispatching items aut horized by Quality Assurance are dispatched. 14. On the basis oI customer speciIied installation plan indicating the date by which materials including tools and tackles Ior diIIerent stages oI erection should reach the site. 15. Copies oI the plan are to planning Structural Division, Design Dep artment and Material Department. 16. %he tentative installation plan is received at intervals oI 6 months the pla n updated. 17. %he site requirements are identiIied and documented by planning Str uctural Division

as site requirement document. %he document is reviewed and approved. 18. %he site required document indicate size oI temporary structures, manpower t ools and tackles, consumables and sub-contracted workmen/ security personnel requi red Ior installation at diIIerent Irame. 19. Actual movement oI tools, tackles and materials Ior installation is commenced on receipt oI conIirmation Irom material stores department about the civil work completion and clearance Irom customer Ior commencement oI installation work. 20. %he materials held at site are adequately protected Irom deterioration, prop erly stored and their stock issue is controlled by the site personnel designated by Production Structural Division. 21. Handlings oI materials at site are done using validated equipments and observing saIety requirements. 22. Site status report is prepared by site engineer and Iorwarded to Producti on Structural Division and Material Stores. 23. Installation at each stage is controlled with the aid oI installed check she ets. 24. On completion oI installation the structure is handed over to customer only aIter joint inspection by customer designated person/ agency and by site engineer.

PRODUCTION PROCESS- FLOW CHART (STRUCTURAL)

MA1L8lAL 8LA8A1lCn SL11lnC MA8klnC Cu1lnC S18AlCP1LnlnC

uLSA1CP CLLAnlnC Anu Aln1lnC MACPlnlnC WLLulnC ASSLM8L? lnSLC1l Cn 4.7. Security Department %here is an In house security department in the KEL, Mamala unit. %h e security department is under Personnel and Administrative Department and the Security head reports to Manager, P & A. %here are 9 security staIIs, oI which 3 are permanent and 6 are temporary. %he t emporary staIIs are appointed Irom the District Sank Board on contract basis. %he con tract period is usually 6 months. 4.8. Safety and Environmental Control %his procedure is indented to ensure saIety status oI operating machin es and equipment installation to maintain saIe working practices. Manager P&A, KEL Mamal a unit holds Iull responsibility Ior the operation oI this procedure. Work Environment %he work environment requirements regarding products should be maintaine d. %he saIety rules and practice in the shop and Iloor is determined and maintained. Personnel prote ctive equipments are made available and employees are trained and made aware oI the importance oI using them. Basic Iacility to drinking water, sanitation and rest rooms are provided. Mainte nance and upkeep oI the environment is done by respective departments. Machines, Equipments and Electrical Installations 1. Maintenance department maintain an updated list oI pressure vessels or liIting equipments as authorized by the production department with the preview oI saIety maintenance. 2. %he pressure vessels are prudently maintained and got certiIied by the designated authority oI inspectorate oI the Iactories as per regulation. 3. Cranes, hoists and chain pulley blocks are inspected once in a yea r by an agency approved by inspectorate oI Iactories and test certiIicates are maintained. 4. Electrical equipments are inspected annually by the electrical inspec tor and deIects rectiIied by the licensed conductor. Personnel safety i. Employees working in hazardous area or activity in Iactory, use or more saIety gadgets namely helmets, saIety shoes, apron, gloves, and saIety belts. ii. Visitors when permitted to enter the Iactory work area provided wi th saIety gadgets needed as appropriate.

iii. Persons working on rooI and structure use saIety belts compulsorily. iv. Personnel and administration monitors and ensures that saIety requirements a re compiled with personnel. Fire and safety i. Material in storage or process area are prone to Iire are identiIi ed speciIically and the type oI Iire extinguishers needed to deal with these are listed. ii. Location wise requirements oI Iire extinguishers are maintained by personnel and administration. iii. Fire extinguishers are checked at speciIied intervals and reIille or replaced when necessary.

Chapter 5 S.W.O.T Analysis A detailed study has been conducted in order to analyze the strength, weakness, opportunities and threats oI the organization. 5.1 Strength of the company i. It has a good company background. ii. It has got ISO 9001 and 2000 Ior quality. iii. It consists oI highly qualiIied personnel. iv. It provides an inevitable and valuable service to society. v. It has a good inIrastructural Iacility. vi. %here is a direct control Irom the Kerala govt. vii. It ensures quality oI the product. viii. It maintains good industrial relation. ix. %he company manuIactures good product without any delay. x. %he company increases the proIit year aIter year. 5.2. Weakness of the company i. Adequate controls oI material are not adopted. ii. Modern technology and machines are not adopted. iii. %he company has not adopted the new method oI accounting. iv. Less number oI qualiIied personnel in some areas. Delay in decision making vi. Lack oI perIormance appraisal system Opportunities i. Extend market to Ioreign countries. ii. It has an opportunity with regards to adopt new technology in production. iii. Opportunity to adopt new methods oI accounting. iv. %he company has an opportunity to buy quality materials and to maintain an eIIective material control.

Threats i. Competition Irom private enterprises is the major threats to the company. ii. Govt. regulations and Ioreign exchange Iluctuations. iii. Absenteeism is another threat Ior the organization %he above depicted SWO% ANALYSIS reveals the cause oI unsatisIactory perIormance s and possibility oI Iuture progress. Make it more elaborative

Chapter 6 Observations and Conclusions Observations O %he sales oI the Iirm is increasing year by year O Company provides satisIactory wages to the employees O Company gives prime importance to quality. O %he net worth oI the Iirm is increasing every year. O Company has a good team oI management and technical staII. O Company has good brand equity O Healthy employee employer relationship exist in the Iirm O No pollution problem O Company conducts social welIare activities Conclusions O %he company should improve its sales promotional activities. O Give more worker participation in decision making process O Company should request Iinancial assistance Irom the government Ior avoiding cumulative loss. O %he company should be more competitive against private Iirms. O Adequate control oI material is necessary. O Company has to adopt new technology in production. O Minimize the core loss oI current. %he Kerala Electrical and Allied Engineering Company Ltd. , is being one oI the biggest public limited companies in the state oI Kerala, is doing great help to the nation by p roviding very important and essential equipment to various industrial concerns and various ele ctricity boards in India. Company has got ISO 9000, 2000 etc. Ior its excellent Iunctioning. %he ex perienced group oI directors, eIIicient management team and highly dedicated employees are the m ost precious blessing oI the company.

Company should be in touch with the market with the market and customers through researchers to monitor the changes taking place in the market. %hrough this the Iirm shall a chieve much more in the coming years. %he Iuture will no doubt witness a more competitive environment coupled with the dynamic and vibrant sector, the company has to rise up to occasion to be successIul in Iutur e years to come.