KERALA ELECTRICAL AND ALLIED ENGINEERING LTD

Organisation study report submitted in partial fulfillment of the requirements for the MBA(Full time) Degree of the Mahathma Gandhi University

Submitted by
JASMAL JABBAR Reg No. : 22524 (2010 2012) Under the guidance of Ms.Fezeena Khadir Asst.Professor

ILAHIA SCHOOL OF MANAGEMENT STUDIES (ILAHIA COLLEGE OF ENGINEERING AND TECHNOLOGY)

Mulavoor P.O., Muvattupuzha 686673. MAY 2011

DECLARATION
I hereby declare that the Organisation Study Report entitled Organization Study at KEL is a record of bona-fide work done by me in Kerala Electrical and Allied Engineering Ltd, during the period of May 1st to May 31st under the supervision of Mr.Benny Augustine, the Manager of Personnel and Administration department, and Ms, Fezeena Khadir, Asst. Professor, Ilahia School of Management Studies, and that no part of this report has formed the basis for award of any degree, diploma, associate ship, fellowship or any other similar title or recognition in any other institution.

Mulavoor Date

Name Jasmal Jabbar

ACKNOWLEDGEMENT
At the very outset I would like to thank and praise the Almighty God, for showering blessing in abundance without which this project would not have been taken up and completed successfully. I express my whole hearted gratitude to Mr. Benny Augustine, the Manager of Personnel and Administration department, for giving me an opportunity to do my project at KEL and for his guidance for the study. I would like to thank all the staff of KEL for their help and assistance for the completion of my study. I extend my sincere thanks to Mr.R.Renjith Kumar , HOD, MBA program, Ilahia School of Management Studies for his guidance and motivation. I also extend my sincere thanks to my internal guide Ms.Fezeena Khadir for her guidance and suggestions. I would like to thank my family and friends for their encouragement and blessings, which enabled me to complete my project successfully.

TABLE OF CONTENTS SL NO 1. 2. 3. Introduction Industry profile Company profile CHAPTERS PAGE NO. 1 4 11

4.

Departmental functions Finance and Account Department Personnel & Administrative Department Marketing Department Design Department Materials and Stores Department Production Department Security Department SWOT Analysis Conclusion Bibliography Appendix

22 27 37 40 44 48 56 60 62 63 64

5. 6. 7. 8.

INTRODUCTION
KERALA ELECTRCAL AND ALLIED ENGINEERING COMPANY LIMITED (KEL) has a vital share in manufacturing the Distribution Transformers in the market. Electricity is an inevitable factor in the modern world. Kerala faces a huge power crisis. The main causes for this, is the production cost, loss of transmission, etc. With the loss of transmission people face low voltage problems. The distribution transformers help to improve the voltage capacity in electricity distribution. KEL produces these distribution transformers for various electricity boards all over India. KEL has 70% market in Kerala alone. KEL facilitates the modern technology for producing high quality transformer with foreign collaboration.

KEL is one among the largest, most vibrant, and productive Public Sector Undertaking, and is fully owned by the Government of Kerala. A multi-product engineering company, consistently catering to an envious client base, ranging from the army and air force of India to world-renowned space research organizations, and highly competent engineering companies to mammoth institutions likes the Indian Railways. The company with four state-of-the-art manufacturing units spread across Kerala has a pan India presence with marketing offices in major metros and select cities.

KEL Mamala has two production units: Transformer Division and Structural Division.

The Transformer Division has been manufacturing the distribution and medium power transformers. KEL is the largest manufacturer of distribution transformers.

The capacity of distribution and medium power transformer up to 3000 KVA, 33KV class with an annual production capacity of 600000KVA. National Test House, various State Electricity Board and power corporations in India have approved the transformers.

Structural Division is into the manufacture of fabricates hydraulic control gates and hoists. Design Fabrication and Commissioning of hydraulic gates, hoists and controlling equipment for power and irrigation projects, pressure vessels and other industrial structures are manufactured by Structural division of KEL Mamala. The main clients are Indian Railways, Dam Projects etc. The concerned clients have inspected these products.

PRODUCT RANGE
Medium power and distribution transformers up to 33 classes, 3000 KVA.

Design, fabrication, supply and erection of hydraulic gates, hoists and controlling equipments for irrigation and power projects.

Fabrication of Structural Steel to customer's specifications.

OVERSEAS PARTNERSHIP As a company in tune with modern technology, the company has had associated with reputed overseas manufactures who are experts in thier respective fields.

PRODUCT

TECHNICAL KNOWHOW

1. Inductor type brushless alternators for lighting and air conditioning of rail coaches. 2. HRC Fuses 3. General purpose brushless a.c. generators.

1. EVR, France

2. UNELEC, France 3. Moteurs Leroy Somer, France

SCOPE OF STUDY

The study is thoroughly focused on the Organizational performance and understanding about almost all activities of different departments of KEL, the authority responsibility relation and making a clear awareness about the overall environment of organization. The study gives a clear cut picture regarding the customers response in purchasing transformers. The company is very much capable for understanding their expectation and needs also

OBJECTIVES OF THE STUDY

1. To provide a clear picture about the structure and functions of the organization 2. To provide a clear understanding of the organizational culture 3. To provide an overall understanding of the organizational activities. 4. To gain practical knowledge of the systems and procedures of various departments in an organization 5. To understand the advancement of the work environment 6. To identify the theory and practical difference in the process of an organization 7. To understand relationship between officials at different levels

CHAPTER II

INDUSTRY PROFILE
Heavy electrical industry encompasses important industry sectors including power generation, transmission and distribution equipments. This also covers turbo generators, boilers, turbines, transformers, switch gears and relays. The performance of this industry is closely linked to the programmes of the country. The government of the country has an ambitious mission of Power for All 2012 as per working group on the power for 11th plan; a capacity addition of 72000MW is required. To reach wheel power, an expansion of the regional transmission network and inter regional capacity to transmit power would be essential. This will stimulate substantially demand for heavy electrical equipments. There is a strong manufacturing base for the manufacture of heavy electrical equipments in the country. The technology available in India is almost at par with in the international market barring few areas of the high voltage lines. However, items like CRGO Steel and amorphous cores for low loss transformers are being important.

The present buoyancy in Indian economy would create demand for the electrical product through industrial growth and general economic development. The power sector reforms will create large business for power sector equipment manufacturer and service

providers. In the current favorable scenario, the electrical industry can certainly look forward to growth.

WORLD SCENARIO

Heavy electrical industry is an industry which consists of different companies which are producing large equipments used for power generation. One of the most important developments in the world economy in the past half century is the enormous growth in world trade. So with the growth in the world trade, the scope or the electrical equipment industry also increased. One reason for growth could be due to the worldwide reduction in trade barriers brought about by several GATT agreements. This report analyses the worldwide market for Transformers. The specific product segment analyzed is Power Transformers, Distribution Transformers etc. . The recent trend for many utilities is to reduce capital spending and the one area which is more scrutinized is capital expenditures on power transformers. Most utilities desired to make efficient use of transformers without creating operating or maintenance problems. Load growth causes increased loading on transformers or necessitates the procurement of new transformers. Utilities may opt for increased transformer loading, which could lead to other transformers problems that were undetected at the lower loading levels.

INDIAN SCENARIO
The domestic transformers industry is well established with ability to provide stateof-the-art equipments. The industry has the capacity to manufacture whole range of power and distribution transformers including the REC rating of 25, 53,100 KVA and also the extra High voltage range of 400 KVA, 600 MVA. Special types of transformers required for furnaces, rectifiers electric tract etc and series and shunt reactors as well as HVDC transmission up to 500 kV is also being manufactured in the country. The industry is well equipped to cope with the requirement of the country's power sector development programmes.

The commercial and industrial distribution transformers market offers a stilldeveloping case study in the Informal Collaborative Model for a national market transformation initiative. After a brief discussion of the market transformation opportunity for commercial and industrial transformers, this section uncovers the roles played by the collaborators in this market transformation effort. The Heavy Electrical Industry is capable of manufacturing transmission and distribution equipment up to 400 KV AC and high voltage DC. Steps have also been taken to upgrade the technology to the next higher systems voltage level of 800 KV. Large electrical motor used in steel plants, petrochemical complexes and other such heavy industries are also being manufactured in the country. The domestic Heavy Electrical equipment manufacturers are making use of the developments in the global market with respect to product designs and upgrading of manufacturing & testing facilities. 10

Distribution transformers offer a largely untapped opportunity for efficiency improvements in buildings. Application of energy-efficient equipment can reduce transformer losses by about 20%, substantially cutting facilities Total electricity bill and offering typical paybacks less than three years. Since nearly all of the electricity powering the commercial and industrial sectors is stepped down in voltage by facility- owned distribution transformers, broad application of energyefficient equipment will lead to huge economy-wide energy and dollar savings as well as associated environmental benefits. This opportunity has led to a multi-party coordinated effort that offers a new model for national partnerships to pursue market transformation.

Electricity use by mare than 3.2 billion kWh in 2010 for a savings of nearly $200 million. Because transformers generally last a very long time, the 2010 savings represent only a third of the total potential savings. Annual savings will continue to increase as stock penetration grows for another twenty plus years. Barnes et al. estimate that full manufacturer participation and universal acceptance of equipment meeting a recently developed voluntary industry standard for "energy-efficient"

transformers would yield energy savings approaching 2.5 quads over a 30 year period 1997.

STATE SCENARIO
Industrial Units manufacturing large plant and machinery required for powerful generation, transmission, distribution and utilization are covered under the category "Heavy Electrical Industry". These include electrical equipments such as motors, transformers, switchgears etc. are used by all sectors of the Indian Economy. Some major areas where these are used are the multi-crore projects for power generation including nuclear power stations, petrochemical complexes, chemical plants integrated steel plants, non-ferrous metal units etc. The industry has been upgrading the existing technology and is now capable of taking up turn-key contracts also for export markets. The existing installed capacity in the industry is of the order of 4500 MW of thermal,

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1345 MW of Hydro and about 100 MW of gas based power generation equipment per annum. There also exists capability for manufacture of equipment for nuclear power plants in the country. The share of domestic equipment is about 66% in the country's power generation capacity. The capacity established for manufacture of various kinds of turbines such as steam & hydro turbines including Industrial turbines is more than 7000 MW per annum. Apart from BHEL, the public sector unit that has the largest installed capacity, there are units in the private sector also manufacturing steam & hydro turbines for power generation and industrial use. The manufacturing range of BHEL includes steam turbines upto 500 MW unit rating which they are planning to enhance upto 660 MW. They have capability to manufacture Gas Turbines up to 255 MW (ISO) rating.

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MAJOR PLAYERS IN INDIA

The transformer market in India is largely unorganized with very few organized players. The key organized players in this segment are: ABB BHEL Bharat Bijlee Emco Vijay Electricals Crompton Greaves Areva T&D India Indo Tech Transformers Limited

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RELATIVE VALUATION
Particular ABB BHEL CROMPTON GREAVES EMCO BHARAT BIJLEE INDOTECH TRANSFORMER Latest Price 2852.00 2322 227.00 532.10 105.60 166.00

MARKET CAPITAL
Particular ABB BHEL CROMPTON GREAVES EMCO BHARAT BIJLEE INDOTECH TRANSFORMER Latest Price 12086.00 56833.27 1188.80 420.78 596.64 176.29

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CHAPTER III

COMPANY PROFILE

NAME

KEALA

ELECTRICALS

&

ALLIED

ENGINEERING LTD ESTABLISHED YEAR ADDRESS TOTAL LAND UTILIZED LAND NUMBER OF EMPLOYEES FIRM TYPE PRODUCTS 1968 MAMALA P.O, COCHIN 682304 13.10 ACRES 13.10 ACRES 294 PUBLIC LTD DISTRIBUTION TRANSFORMERS & HEAVY STRUCTURAL ITEMS NATURE OF BUSINESS CATEGORY KEY POINT INDUSTRY FOCUS LEVEL OF EXPAND AREA MANUFACTURER ELECTRICAL ENGINEERING MULTIFARIOUS ACTIVITIES ENERGY AGENTS INTERNATIONAL ALL OVER INDIA & ABROAD

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HEAD OFFICE

7th FLOOR, HOUSING BOARD OFFICE COMPLEX, PANAMPILLY NAGAR,

COCHIN-682036 REGISTERED OFFICE KOLKATA, MUMBAI, NEW DELHI, BANGLORE, CHENNAI,

COIMBATORE, TRIVANDRUM CUSTOMERS KSEB, KEB, TNEB, KPCL

HISTORY AND PHILOSOPHY

The Kerala Electrical And Allied Engineering Company Limited (KEL) was established in 1968 in the state of Kerala, India. It is fully owned by the Government of Kerala engaged in manufacturing electrical engineering goods . Kerala Electric and Allied Engineering Company Limited has corporate office at Panampilly Nagar, Cochin. It has four manufacturing units in various parts of state. The company has various offices situated at major cities of the India to improve marketing activities and to provide smooth afterservice to the company. Some of the major centres among them are at New Delhi, Mumbai, Chennai, Bangalore, Hyderabad, Cochin and Trivandrum. KEL is considered as the one of the biggest public sectors in the state. The company has progressively expanded its range of manufactured goods and services over the year and has strategically broadened its customer base on a global level. KEL offers good quality products and services to the customers, with a manpower of over 1400 employees including over 250 experienced and well qualified engineers. The primary objective of the company is generation, transmission, distribution and utilization of electric power. KEL is a major producer and distributor of transformers, switch gears, transmission line towers, substation equipments and accessories to various State Electricity boards of India

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KEL entered in various activities for broadening their wider domestic and overseas market. The company has four manufacturing units located in various districts like Kundara, Mamala, Olavakkot, and Kasargod. KEL has compliance with an ISO 9001-2000 Standards. KEL maintain electrical power transmission and distribution networks which includes H.T, L.T, substations, both indoor and outdoor type, packages/unitized substations, overhead transmission lines and Pylons, booster stations and street light etc. KEL has acquired advanced technology with the support of various expert manufactures from abroad like EVR of France for producing inductor type brushless alternators, UNELEC of France for producing HRC fuses and Moteurs Leroy Somer of France for producing air conditioner generators .etc

MANUFACTURING UNITS
Various manufacturing units of the company can be situated at different district of Kerala. Primarily there are four manufacturing units. They are

KUNDARA UNIT Kundara unit was established in the year 1964 at Kollam district. The inductor type of brushless alternators is mainly manufactured at this Kundara unit which has been widely accepted by railways around the world. The main products of this unit are a) Statodyne brushless alternators b) Spheroidal graphite iron &grey iron casting. MAMALA UNIT Mamala unit was established at 1968 in Ernakulam district. This unit is engaged in the production of medium power transformer and distribution transformer up to 3000KVA, 33KVA with annual production of 6 lakhs capacity. Main products of this unit are a) Transformer b) Hydraulic gates and hoists c) Gantry cranes d) Penstock & pressure vessels.

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OLAVAKKOT UNIT Third plant of KEL is located at Olavakkot in Palakkad district. This unit is formerly known as MENCOS, which was taken over by KEL in 1977. Main products of this units are HRC Fuses, LT switcher items and non ferrous casting. KASARGOD UNIT The fourth plant was established at Kasargod district, in the year 1990 and it is the leading manufacturer of electrical equipment in India. This unit uses most modern facilities including computer aided design centre and it uses CNC machines. The products manufactured by this unit are general purpose brushless alternatives, diesel generators, and Silent diesel generators sets.

MARKET POTENTIAL
All over India, KEL distributes 2% of its total needs, when its production is 100%. In Kerala, KEL markets 35% to 40% of total needs of the state.

COMPETITORS
Main competitors are At National level: Kirloskar Bangalore 1) Indotech Chennai 2) Crompton Greaves Chennai At state level: 1) Intranus Ernakulam 2) Telk Angamaly

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PRODUCT RANGE
1) Medium power and distribution transformers up to 33 class, 3000KVA 2) hydraulic gates, hoists and controlling equipment for irrigation and power projects 3) The main projects done by KEL are: Project Name Falcon Missile Project Client R&DE (Engrs), Pune Nature of Work Nature mounted 62.5KVA 415V, 50HZ,3-Phase DD set Trishul Missile Project DRDO 50kva Dual output DG set 2KV, 3000rpm, DG Set 12KV,30V, Alternators Akash Missile Project BEL 75KVA, Battery Vehicle Military Power Car Army 180KVa, 415V, 50HZ, 3Phase Alternator Battery Charges of Battle Army Tankers General Air Force 8KVA/5.6KV, 220V, 220V, Power 400HZ, Source 400 HZ

Prithvi Missile R&DE Project (Engrs), Pune Pinaka Project LAT

50HZ, 3-Phase Alternators 19KVA, 415V, 50HZ, 3Phase Alternators

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General

Army

30KVA, 220V, 50HZ, 3Phase Alternators

General

Air Force

125KVA, 415V, 50HZ, 3Phase Alternators

Radar Application

Air Force

100KVA, 220V, 400HZ, 3Phase Alternators

Radar Application

Air Force

250KVA, 400V, 50HZ, 3Phase Alternators

VISION STATEMENT
To Be Globally Recognized Enterprise Committed To Enhancing Stakeholder Value By Providing World Class Engineering And Power System Solution.

MISSION STATEMENT
Ensure Prompt Serving 7 To Achieve Continuous Improvement.

QUALITY SYSTEM
To achieve customer satisfaction, provide better products and service to customer, to satisfy their needs and wants.

QUALITY POLICY
Manufacturing products to meet the requirements of customers and provide better service.

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PRODUCT PROFILE
The company has majorly operated through two divisions, which are : a)Transformer Division and b)Structural Division.

A.TRANSFORMER DIVISION
The Transformer Division went on stream in 1968. It has facilities for producing distribution transformer and medium power transformers up to 1600 KVA 33KVA with annual production capacity of 600000KVA. The transformers of 100KV, 160KVand 500KV have more demand. Major product ranges of this division are : 1) oil filled circuit distribution transformer. 2) Oil filled on load tap changer (OLTC). Transformers with automatic voltage regulator(AVR) and remote tap changing cubical(RTCC) 3) Oil filled autotransformer. 4) Oil filled amorphous core transformer. 5) Dry type transformer (resin impregnated) 6) Unitized sub station with oil filled and dry type transformer Eventhough the division has capacity to manufactures transformers of rating up to 3000KVA classes, the majority of transformers manufactured are in the range 100KVA- 160KVA.

STRUCTURAL DIVISION
The Structural Fabrication shop was setup in 1967. This division has an installed capacity of 1200 per annum. The division has a team of professional Engineers, Technicians & other employee with adequate experience for performing designing, fabrication & erection .

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There is a Centralized Planning & Quality Assurance Department. This division will be able to earn goodwill of many states and satisfied execution of number of projects involving hydro mechanical equipments. In structural division a number of machines are employed one team works on each machine. Each team includes three members, they are under the control of a leader. A team involves one welder, one fitter and one unskilled worker.

These machines and its products are given: 1. Gear Hobbling Machine 2. Milling Machine Cutting 3. Laith Machine 4. Vending Machine 5. Gillette Machine 6. Press Breaker Machine 12mm 7. Drilling Machine 8. Mig Welding - used for drilling the plates - used for welding - for forming thread - Used for 12mm pipe bending - For cutting the palter up to 12mm - plates bending 90 degree, the capacity up to - used for gear cutting - Slots, plane milling etc.. used for

The structural division has one Manager, Production Engineer, Foreman and Charged hand

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23

ORGANISATION CHART

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CHAPTER IV
ORGANIZATION DEPARTMENTS & OFFICERS OF EACH DEPARTMENT DEPARTMENTS FINANCE AND ACCOUNTS OFFICERS IN CHARGE PERSONNEL AND ADMINISTRATION MARKETING DESIGN MATERIALS & STORES PRODUCTION GENERAL MANAGER ASSISTANT MANAGER EXECUTIVE FINANCE OFFICER JUNIOR OFFICERS WORKS MANAGER ASSISTANT MANAGER ASSISTANT ENGINEER EMPLOYEES DEPUTY GENERAL MANAGER(DGM) MANAGER ASSISTANT MANAGER SUPERVISOR DEPUTY GENERAL MANAGER MANAGER EMPLOYEES DEPUTY GENERAL MANAGER MANAGER ENGINEER SUPERVISOR DEPUTY GENERAL MANAGER MANAGER ENGINEER/TECHNICIAN SUPERVISOR

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DEPARTMENTAL FUNCTIONS

FINANCE AND ACCOUNT DEPARTMENT

The Finance Department regulates the available financial resources to the company. Financial department helps the company to utilize the money more effectively through well designed mechanism. Finance department of the company is headed by the Finance Manager. The main records prepared by the company are Profit and Loss Account, Balance Sheet, Financial

Performance Statements, etc, for the findings of the operating results, financial position, and future prospects of the company. This statement helps the company to reveals the true financial position during the period.

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STRUCTURE OF THE FINANCE DEPARMENT

FUNCTIONS OF FINANCE DEPARTMENT

Finance department of the company constitute the accounts and administration and cash management. Main functions are a) Auditing and preparation of records with the support of all members in the Finance Department. b) Analyzing financial position of the company. c) Making future plans related to finance departments. d) Analyzing capital requirements e) Accounting works relating to personnel department 27

f) Preparation of invoice g) Preparation of payroll h) Maintaining records related to the bank and cash transaction i) Maintaining sales accounting and sales tax matters j) Maintaining accounts related to day-to-day affairs

SOURCES AND USES OF FUND

The company acquires funds through the sales of products, or from head office and other source like short term and long term borrowings from various financial institution. Each branch manager has only the power to sanction funds up to Rs.200000. Above this limit, he is required to take permission from the major office. Preparation of payroll and salary administration is inevitable for this department. The salary administration is performed in two ways: 1) For employees and clerical staff under Industrial Dispute Act. 2) For managerial staff under Kerala Government Department Rule .

1. For Employees and clerical staff under ID Act The salary paid for employees includes the basic pay, Dearness allowance, House Rent allowance (HRA), fringe benefits , night shift allowances, washing allowances, risk allowances and overtime allowances. The net result of all these allowances is known as Gross Salary

2)For Managerial Staff The salary scale and dearness allowance to the employees are fixed mainly on the basis of Kerala Government rule. When the Government of Kerala made certain rules for paying DA to employees, which can be paid to the employers only after getting the permission from Board of Directors. Gross salary for employees includes the Basic pay, DA and HRA, deductions made available to Managerial staff in the same manner to the employees. 28

RESPONSIBILITY OF KEY PERSONNEL

Main persons of this department are: Assistant Manager Auditing and finalization of financial report Making future financial plans Assistant Accountant officer Accounting works related to personnel department Analyzing the capital requirement Junior officer Preparing payroll Preparing invoices Recording day to day transaction Cashier deals with cash and bank transaction Clerk deal with sales matters day to day works

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ACCOUNTING POLICIES OF THE COMPANY

Finance Department provides authorization and control over available resources. Making equality between receipts and payments Available resource can be profitably utilized Analyzing true financial position Asset and liability can be properly recorded

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PERSONNEL & ADMINISTRATION DEPARTMENT

Personnel management is concerned with acquiring and developing personnel for achieving the objective of the organization. There are a number of steps for selecting a person to the organization:a) Recruitment :- Recruitment is the process of searching for prospective employees and simulating them to apply for job in the organization. Recruitment is the policy of filling vacancies with the best qualified and experienced individuals. KEL, has adopted centralized recruitment system. Recruitment process is conducted by head office of the company. This company has used different methods of recruitment process. It includes :

Advertisement :-in majority of cases, recruitment has done through advertisement. In this process the company publishes their advertisement for the process of recruitment in local or national medias, press, journals, internets etc. nIt helps the company to get wide range of applications from the prospective candidates for selection. Through this process the company is able to select the right person for the right job. Managers and other office staffs are selected through this process.

Employment Exchange:- The company has recruited employees through employment exchanges also. Mainly the apprentice required to the job can be selected through this method. Trade Union:- for recruitment process trade union also plays an inevitable role. Companies can recruit employees through maintaining a mutual agreement between trade unions management. Four trade unions play significant role in selecting employees for KEL. They are

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1) KEL Employee Congress (INTUC) 2) KEL Employee Union (CITUC) 3) KEL Employees Association (STU) 4) KEL Workers Union (HMS)

Transfer: - Transfer means

shifting persons from one job to another similar job or different

places in the same job. Through transfer employees responsibility, prestige, status and authority may not change. Transfer can be taken place with the proper consent from employees and trade unions

Promotion: - Promotion is the process of shifting employees from one position to a higher position. Here the responsibility, authority, prestige and status of concerned employees are increased. In this case, there is an increase in salary also.

B.) SELECTION AND TRAINING: -

SELECTION
Selection is the process of selecting the right person from the prospective candidate and appointing them to the right job for achieving organizational goals. Selection can be done through the elimination of unwanted employees. So selection is a negative process. In the case of KEL, selection process can be done by the head office of the organization.

SELECTION PROCESS
External & Internal Environment

Reception

32

Preliminary Interview

Blank Application Form

Selection Tests

Selection Interviews

Checking Refer

Final Selection

Physical Test

Job Offer

Job Contract

Evaluation

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C.) SHIFT TIMINGS The shift timings of employees of KEL are; Shift timings for administrative staffs: from Monday - Friday 9.30 am 4.30 pm On Saturdays 9.30 am 12.30 pm Shift timings for employees in Production Departments From Monday - Friday 1. 00.30 am 8.30 am 2. 08.00 am 4.30 pm 3. 4.30 pm 00.30 am On Saturdays 1. 8.00 am 1.00 pm 2. 1.00 pm 4.30 pm

d.) TRAINING
Training is an activity which can be conducted mainly to increase knowledge and skills of employees for completing their work in an efficient manner e.) PUNISHMENTS ON MISCONDUCT An employee who performs any misconduct or working like a favor towards another individual will be punished according to the terms and conditions of the company. Following are the punishment given to the person: 1) Memo 2) Cutting of increments, bonusetc 3) Suspension 4) Discharging authorities 5) Dismissal

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f) APPRAISAL & INCENTIVES There are no performance appraisal activities at KEL. They do not provide any incentive schemes to the employees which makes dissatisfaction in the mind of employees.

CLASSIFICATION OF HR IN KEL
A. Executives 1. General Manager 2. Deputy General Manager 3. Works Manager 4. Manager 5. Assistant Manager 6. Security Officer 7. Personnel Administrative Officer 8. Production Engineer 9. Executive (Finance) 10. Accounts Officer 11. Assistant Engineer 12. Junior Officer 13. Supervisor Grade 1

B. Non-Executives 1. Senior Assistant 2. Junior Assistant 3. Special Skilled Worker 4. Skilled Worker 5. Semi skilled Worker 6. a) Employee Grade 1 35

b) Employee Grade 2 c) Employee Grade 3 d) Employee Grade 4 e) Employee Grade 5

MANPOWER:Kerala Electric And Allied Engineering Limited has employed 108 skilled worker, 146 unskilled workers and 42 staffs and securities.

STATISTICAL DETAILS OF MANPOWER

SL: NO PARTICULARS TRANS DIVISION GM/DGM/WM Manager/AM Executives Engineers AE/FM/JO/AO/APO Staff/Security Skilled Unskilled TOTAL 3 9 4 8 51 89 164 STR DIVISION 2 7 4 8 54 47 122 2 5 2 6 7 42 1 10 75 7 21 2 14 23 42 106 146 361 GENERAL TOTAL

1 2 3 4 5 6 7 8

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EMPLOYEE BENEFITS
The company has provided various kind of benefits to the employees. Some of the important among them are, KEL Employee Welfare Fund Scheme Leave Facility Retirement Benefits Employee State Insurance Employee Provident Fund

I . KEL EMPLOYEE WELFARE FUND SCHEME

This scheme was established in 1996. This scheme is an extension of the KEL. Employee Welfare and Sports Fund, 1997 and all members of the above scheme as on 31- 03- 1996 continue. These regulations shall apply to all permanent employees who adopt the scheme as per its rule. Generally fund is generated for this scheme, from the members of organization and by the management and many other source. This fund can be generally utilized for the welfare of employees.

II. LEAVE FACILITY

A permanent employee who works in the organization will get privileged leave of one month in every year. However, that privilege leave will not occur during the period of leave availed. Privilege leave of one month is not granted for the period. Every employees get 14 days paid leave during one year.

III. RETIREMENT BENEFITS

Every employee who attains the age of 58 years according to the records of the company retires from the services of the company unless specifically requested. Employees retired from the company after the completion of age 58 will get provident fund, gratuity etc.

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IV. EMPLOYEES STATE INSURANCE

The ESI is a contribution scheme, in which the employer contributes 4.75% of the wages and the employee contributes 1.75% of his wages to the fund. The ESI Act 1948 is only advisable to the factories. This scheme is applicable to the employees who receive wages below Rs. 6500/- per month.

V) EMPLOYEE PROVIDENT FUND

The Employees Provident Fund Act 1952 is mainly contributed to provide social security to the employees. Both the employees and employers will pay 12% of wages or salary to this scheme. Employees can withdraw the provident fund at the time of retirement. Employees will are also able to enjoy several loans and advances on the basis of this scheme.

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STRUCTURE OF PERSONNEL AND ADMINISTRATION DEPARTMENT

4.2.3

FUNCTIONS OF PERSONNEL AND ADMINISTRATION DEPARTMENT:

Human resource planning for the future. Procurement of the right kind of persons and number of persons for the right job. Maintaining good relationship among the employees for achieving success in the future.

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Achieving the organization goals by utilizing the manpower resource. Providing equitable compensation to the employee. Acquiring and training talented persons for the benefit of the company Ensure smooth flow of the company, without any conflict. Provide good working conditions to the employees. Directing controlling and supervising the employee in the correct manner.

RESPONSIBILITIES OF KEY PERSONS

a. General Manager i. ii. Making future personnel and administration policy Appointing talented persons for the job

b. Deputy General Manager i. Selecting talented person from candidates those who have applied for job. ii. Training given to employees

c. Junior officer Searching and motivating prospective employees for applying for the job.

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MARKETING DEPARTMENT
KEL has mainly adopted general features for marketing their product to the market. Company will adopt several marketing strategy to promote their product. The product segment of company will directly connected to the customers of the company. KEL has mainly promote their product only through several industrial journals only. Company have opened several regional centers in various cities for market their product.

POLICY
To establish and maintain a process and procedure to obtain orders by identifying customer requirement regarding products and service.

MARKETING PROCESS
Company collects tenders generally through newspapers and other specifications. After this, KEL prepares tender document and sends to the Design Department. Generally, the company gives permission to tenders up to Rs. 2500000. After this the unit submits competitive quotation with companys interest and the best quotation gets the tender. Then the company gives acceptance letter to the customer. After this process marketing department prepare a sales order and send to all departments that take part in the production. On the basis of this order design department designs the product and material department purchase and stores the materials. After the completion of product, dispatch function is carried out. Company guarantees the product for a period of 12months

MARKETING NETWORK
KELs products are marketed by extensive networks of marketing officials located in all the major cities like New Delhi, Mumbai, Kolkata, Bangalore etc.

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STRUCTURE OF MARKETING DEPARTMENT

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FUNCTIONS OF MARKETING DEPARTMENT

Making adequate marketing policy. Ensuring the availability of tenders. Facing successively competition strategies of other companies successfully Ensuring advance payment before dispatching the product. Providing better after sales service to the customers of the company. Maintaining good relation with customers. Making arrangements to meet competition. Treating equally all customers

RESPONSIBILITIES OF KEY PERSONS

a. General Manager Approving tenders received by the company Generating marketing strategies

b. Deputy General Manager Presenting tenders before General Managers Watching the performance of other members

c. Manager Collecting tenders from clients Verifying tenders

d. Junior Officer Making arrangements for getting tenders

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DESIGN DEPARTMENT
Design Department designs the products of the company for production. On the basis this design, the company produces transformers for selling to the external environment

DESIGN POLICY
To establish and maintain the process to meet the customer requirement and achieve relevant standards within a specified time.

DESIGN PROCES
Design process can complete within several stages: Design 1 Stage: Preliminary Design for Marketing Quotation In this stage of design, department studies the specification of product specified in the tender, received from marketing department. Department estimates the price of raw materials currently in the market and Provide estimated cost and technical specification to marketing department. Design II Stage: Actual design of the product In this stage, department receive sale order from marketing department and makes production planning for manufacturing the product. Design department receives feedback from production department to know about manufacturing the product according to the specification of customers. After the production quality assurance is done with in presence of the customer consultant.

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STRUCTURE OF DESIGN DEPARTMENT

45

46

FUNCTIONS OF DESIGN DEPARTMENT

i. ii. iii. iv. v. vi. Receiving the sale order from marketing department Designing the product of the company Receiving tenders from the client Ensure design can be suiting current situation Ensuring product can be designed according to the requirement of consumer Approve design

MAJOR FUNCTIONS AND RESPONSIBILITIES OF DESIGN DEPARTMENT

General Manager Overall functioning of design department keeping track Ultimate aim to meet customer satisfaction Validation, verification and review of product design Deputy General Manager Preparation of estimation and technical details Updating codes, standards and its maintenance Maintenance of quality records Junior officer Presentation of drawing and specification quoted by design

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MATERIALS AND STORES DEPARTMENT

KEL has a material and stores department which can purchase the raw materials for the production of companys product. This department ensures quality of the material they use for the production at reasonable price. The company follows ABC analysis for the control of the material. A value material is purchased against orders, and B value materials in almost similar method. But C value material, which requires minimum control, is maintained at the minimum stock level.

VARIOUS PROCESS OF MATERIALS DEPRTMENTS

Receipt of purchase requisition / purchase note Verifying purchase requisition / purchase note Enquiry plotting Ensuring availability of material Initiating purchase approval Purchase committee approvals Releasing purchase orders Receipt of materials Bills passing

PURCHASING PROCEDURES
Material Purchase: Materials required for production can be purchased with the permission of General Manager and such purchase can be generally made from sub contractors. Purchase is generally make done according to the purchase requisition / purchase notice from particular department. Purchasing function can be done by purchase committee, headed by the General Manager. This committee prepares purchase order as an evidence for verifying the purchase data. Purchase order is made in 6 copies. Among them one copy is send to quality department ,one to design one to finance ,two copies to maintenance and one copy retained by the material department. Purchasing is generally done by inviting tender or quotation 48

MATERIAL RECEIVING, STORAGE, PRESERVATION & ISSUE PROCEEDURE

Materials received or stored against purchase order, invoice etc and items received in such manner entered in Goods Receipt Register .GRN prepares in 6 copies. 5 copies are sent to Quality Assurance for carrying out inspection testing and endorsement of results. The storage plan indicates the area in which items can be located such as steel items on open yard, oil in tanks and sub stores. Materials of the company are also stored in sub stores located near to plant. Items held in stores more than specified period are subjected to re-inspection. The preservation of product in storage is achieved by specifying appropriate controls and application of preservation as documented by Quality Assurance Department. Every month company prepares stock statement and sends to different departments.

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STRUCTURE OF MATERIALS DEPARTMENT

FUNCTIONS OF MATERIALS & STORES DEPARTMENT

Purchasing of material required for company Storage and preservation of purchased materials Ensuring re-inspection of stored products Release of purchase order Control materials. Issuing materials Prepare monthly stock statement

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RESPONSIBILITY OF KEY PERSONS

Deputy General Manager Receive purchase requisition and initiating enquiries Repairing purchase committee proposals Preparation of purchase orders Identify the item for cash purchase Purchase Plan Manager Preparing sub contractors evaluation report Evaluation of offers Follow up with sub contractors Clerk Preparing enquiries and receiving offers Maintaining purchase committee approval register Assistant Manager Issuing materials Counting of material received

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PRODUCTION DEPARTMENT
The KEL Mamala unit has one production department. It has two department section which are planning section and quality assurance section. The company has generally two production units such as Transformer Unit and Structural Unit/ Division.

1. PLANNING SECTION
Planning section holds the responsibility of planning about the product at the different stage of manufacturing. Planning generally made from marketing and design department. The Design department designs the stages for production. The Materials department provides the materials for production in connection with sales order from marketing department. Thus the production of transformer is done in a highly planned method.

POLICY
To plan, to organize and to coordinate the activities, to achieve the targeted production, within the time frame to the needs of the organization.

PRODUCTION
The company has generally two production units which are Transformer division and Structural division

TRANSFORMER DIVISION
Transformer division of KEL produces distribution transformer and medium power transformer with capacity of 6000000KVA. The works of production department are controlled by Production Manager. For producing a transformer labor paid up to 22%, raw material amounts to 63% and other overhead expenses up to 15% of the total cost. There are generally nine stages in manufacturing a transformer.

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These stages are: 1: End Frame (Fabrication) In this stage the frame is cut in the shape of E. Silicon steel is cut in an E shape for frame fabrication. 2: Insulation & Assembly The insulation is done in core building, HV winding and LV winding. Insulation helps to overcome the occurrence of short circuit. 3: Core Building / Assembly The core has been laminated with CRGO (Cold Rolled Grain Oriented) lamination. Because of this the core is free from any short circuit. 4: HV Winding: The conductor is used for the high voltage coil winding. The conductor is wound or insulated with Double Paper Grade Strip. It helps to produce the high voltage electricity and also to be transmitted or distributed. 5: LV Winding: Here also the conductor is used. Low voltage coil are wound with double paper ground strip. This strip reduces the possibility of short circuit. This coil consists of low voltage electricity which comes from outside. 6: TG Mounting: The HV Winding and LV Winding terminals are fixed into a bush. The terminal gear is built with copper or aluminum flat. For evaporation of any water content, if present, the terminal geared oil has to be dried for 3 4 days.

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7: Tanking: The fabricated tank has been made available through subcontract of manufacturing the structural unit. The dried TG Mounted coil is put in the tank. Then the tank is filled with oil. Then tighten takes place. 8: Final Testing: After the completion of production, product is finally tested by supervisor of this department. 9: Painting & Dispatching: Final stage is painting and dispatching the transformer.

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PRODUCTION PROCESS OF THE TRANSFORMER

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I. STRUCTURAL DIVISION

In this division , there are several machines are installed. Among these machine one gang working. Each gang contains three members and they are controlled by one who charge handed. One team involves one welder, one fitter and one unskilled worker.

POLICY
To derive customer satisfaction through proper planning, manufacturing, installation and commissioning as per specification The Structural Division holds one Manager, Production Engineer, and Assistant Production Engineer Foreman and Charged hands. The machines and its uses are: 1. Gear Hobbing Machine 2. Milling Machine 3. Laith Machine 4. Vending Machine - It is used for gear cutting - Slots, Plane milling excused for cutting - For forming thread - Used for 12mm pipe bending, which is used in transformer tank 5. Gillette Machine 6. Press Breaker Machine 7. Drilling machine 8. Mig Welding - For cutting the plate up to 112mm - Plates bending 90, the capacity up to 12mm - Used for drilling the plate - It is used for welding

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MAJOR PRODUCTION ACTIVITIES

a) Cutting b) Drilling/Boring/Grinding c) Bending d) Setting e) Welding f) Surface Preparation g) Straightening h) Painting i) Keeping

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STRUCTURE OF PRODUCTION DEPARTMENT

58

FUNCTIONS OF PRODUCTION DEPARTMENT

i. ii. iii. iv. v. vi. Issue work order Coordinate activities of drawing and bill of material To check work progress Ensuring the proper utilization of resources. Maintain the quality of product Carrying out preventive and break down maintenance

RESPONSIBILITY OF KEY PERSONNEL

Deputy General Manager Receiving work order allocates work to foreman Coordinating planning and design department Achieving production targets Assistant Manager Arranging work shift Preparation of weekly production report Foreman Effective utilization of men and machinery Drawing of raw material from stores for the work Reporting of daily / weekly production in time

2. QUALITY ASSURANCE SECTION

Quality assurance section of production department assure the quality of product they manufacture. 59

SECURITY DEPARTMENT
There is a security department in the KEL Mamala unit. The Security department of company will work under Personnel & Administration Department. The head of this department will work under the Manager of personal and administration. There is 9 staff in this department of which 3 are permanent and 6 arte temporary. Temporary staff are appointed on contract basis and it ranges up to 6 months.

SAFETY AND ENVIRONMENTAL CONTROL

This department ensures safety running of operating machines and equipment installation to maintain safe working performance. Companies Personnel and Administration department holds full responsibility for operating this department.

WORK ENVIRONMENT
Work environment required products to be manufactured. Safety rules and practices in the company to maintain products with standardized quality personal protective equipments are made available and employees are trained and made aware about using them .MACHINES EQUIPMENTS AND ELECTRICAL INSTALLATIONS 1. Maintenance department maintain an updated list of pressure vessels or lifting equipments as authorized by the production department which the preview of safety maintenance. 2. The pressure vessels are prudently maintained and got tested and certified by the designated authority of inspectorate of the factories as per regulation. 3. Cranes, hoists, chain pulley blocks are inspected once in a year by an agency approved by inspectorate of factories and test certificates are maintained. 4. Electrical equipments are inspected annually by the electrical inspector and defects are rectified by the licensed contractor.

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PERSONNEL SAFETY
1. Employees working in hazardous area can provide safety gadgets namely, helmets, safety shoes, apron, gloves, and safety belts. 2. Visitors allow safety gadgets when they enter factory . 3. Persons working on roof and structure use safety belts compulsorily. 4. Personnel and Administration departments spreads safety awareness among persons through training programmes. 5. Personnel and Administration monitors and ensures that safety requirements are compiled with personnel.

FIRE AND SAFETY

1. Material in storage or process area are prone to fire are identified specifically and the type of fire extinguishers needed to deal with these are listed. 2. Location wise requirements of fire extinguishers are maintained by Personnel and Administration department 3. Fire extinguishers are checked at specified intervals 4. Fire extinguishers are refilled or replaced when necessary.

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CHART OF SECURITY DEPARTMENT

DGM

Assist. Manager

Assist. Manager

Foreman Foreman

Worker

Worker

3RESPONSIBILITY OF KEY PERSONNEL

Deputy General Manager Ensuring security of person works in the organization Creating security policy

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Assistant Manager Making security awareness among human resources Searching effectiveness of the security policy Foreman Installing several equipments for ensuring safety

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CHAPTER V SWOT ANALYSIS STRENGTH

KEL consists of highly qualified personnel KEL provides inevitable and valuable services to the society. KEL maintains good industrial relations It ensures the quality of the product The company manufactures good product without any delays.

WEAKNESS
Modern technology and machines are not adopted. Adequate control of material is necessary The company has not adopted the new method of accounting The company increases the loss year after year No performance appraisal

OPPORTUNITY
It has an opportunity to adopt new technology in production Opportunity to adopt new methods of accounting The company has an opportunity to buy quality material and to maintain an affective material control

THREAT
Competition from private enterprises is the major threat to the company Financial position of the company is unsatisfactory

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FINDINGS & SUGGESTIONS

FINDINGS
KEL is one of the biggest public sector companies in Kerala KEL offers its customers worldwide, comprehensive array of goods and services through its various divisions Products are marketed through an all India network of marketing team to guarantee complete customer satisfaction KEL is a company engaged in multi various activities KEL has a manpower base of about 1000, which include 150 qualified and well trained professional engineers Company gives primary importance to quality Since 2007, we can see a depreciating trend in profits. There has been no strike in the company since 2005. Company should concentrate on timely delivery

SUGGESTIONS
There should be a proper production target to be set in consultation with the employees Proper training should be given to all the employees The management has to take a proper decision to make use of the vacant land in the companys compound Production to be increased by using the same force by offering incentives. This will help to get more output and more earnings to the employees Adequate control of materials is needed Company has to adopt newer methods of accounting Give more workers participation in management decision making should be made. Utilize the available resources in proper manner. 65

CHAPTER VI CONCLUSION
Organization Study conducted at KERALA ELECTRICALS AND ALLIED ENGINEERING LTD, MAMALA Unit helped in understanding the structure and functions of the organization. All the departments like finance and accounts, personnel & administration, marketing, design, materials & stores, production are functioning professionally and are efficiently managed. The joint effort of all the employees play a major role in the development of the organization. To conclude, we can say that, when we want to create a healthy, creative and profitable organization, one should be able to connect all points with appropriate balance.

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BIBLIOGRAPHY

1. Annual report of the company 2. Internet : www.kelindi.com

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APPENDIX

FINANCIAL PERFORMANCE OF COMPANY

CAPITAL STRUCTURE OF KEL LTD

Balance Sheet As At 31 March 2008 Schedule I. Sources of funds 1. Share holders funds a) Capital b) Reserve & Surplus 2. Loan funds a) Secured Loans b) Unsecured Loans C D 192959959 259214059 189512759 2592122796 A B 713780774 39049631 713780774 39049631 31-3-2008 Rs 31-3-2007 Rs

452174018

448725555

1205004423 TOTAL

1201555960

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II. Application of funds 1. Fixed Assets a) Gross Block b) Depreciation c) Net Block d) Project Work in Progress

251845454 233406910 18438544 91399447 109837991

251495454 225573910 25921544 91399447 117320991

2. Investment 3. Current Assets, Loans, Advances (-) Less Current Liabilities & Provision Net Current Assets 4. A. Deferred Expenditure B. Profit and Loss A/c

G H

5000 625142503

5000 538692503

253417190 371726313 8611102

231614164 307078339 17922203

J 714780018 759784427

1205004423

1201555960

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Profit & Loss Account for the year Ended 31 March 2008 Schedule INCOME Sales, Works contract, Job works and Miscellaneous income Increase/ (Decrease) in stock L K 1010336000 31469000 1041805000 857546500 (77646628) 779899872 31-3-2008 Rs 31-3-2007 Rs

EXPENSE Materials consumed Interest & Bank Charges Other Expenses Depreciation Deferred revenue expenses written off M N O E 584693000 41517000 354046490 7833000 8711101 996800591 404817000 38212000 302819770 13104000 8711101 767663872

(Loss)/ Profit for the year

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(Loss) Brought forward from last year (Loss) transferred to Balance Sheet

45004409 (759784427) (714780018)

12236000 (760895620) (748659620)

71