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An Organization Study at

Aluminium Industries Ltd


Submitted in partial fulfillment for the requirement for the award of the degree

MASTER OF BUSINESS ADMINISTRATION


M G UNIVERSITY
KOTTAYAM

Submitted by
Register No:

Under the guidance of

Mr.:
Faculty Member

MBA Department, BSS IT MISSION THYACDU

DECLARATION

I declare that the project report entitled An organization study on ALIND


LTD Submitted by me for the award of Master of Business Administration of M.G
University is my own work. The report has not been submitted for the award of any
other degree of this university or any university.

Place: Kollam
Date:

ACKNOWLEDGEMENT

First of all I wish to express my deep gratitude and thanks to God who helped us
in completing the organization study successfully.
I shall remain grateful to. Mr.:BSS IT MISSION
THYACDU for his amble guidance and encouragement for completing the
organization study. I am also extremely grateful to faculty member for their valuable
suggestions and advice regarding this work. I also express my profound gratitude to
project guide .,Sr. Manager, HRM for his valuable guidance and timely
advice and well-wishers for Encouragement given to us during the course of the project.
It is my pleasure to express a deep sense of grateful to .,
Sr. Manager, Safety & Environment Department & MIS without his untiring
efforts and tremendous background information this work would not have materialized.
I express my sincere
Thanks to all the staff of ALIND LTD for their co-operation during my study in
the company. Last but not least we thank my parents and for all their moral support and
help, they had given to me.

CONTENTS

Introduction
Industry Profile
Company Profile
Product Profile
Customer Profile
Departmentalization
Human Resource department
Finance department
Production department
Planning department
Commercial department
Purchase department
Marketing department
Quality Control department
Store department
Safety department
SWOT Analysis
Findings
Suggestions & Recommendations
Conclusion
Bibliography

INTRODUCTION

O r g a n i z a t i o n s t u d y d e a l s w i t h c r i t i c a l e v a l u a t i o n a n d a n a l ys i s
of

all

the

aspects

of

particular firm. It gives a clear idea about the functions and


practice

of

v a r i o u s department heads and operational efficiency of the

department as a whole. This particular study gives a clear idea about the
functions, practices and the delegation of authority of TRAVANCORE
SUGAR AND CHEMICLAS LTD, Valanjavattom. With this, study gives an
overview about the practical situations, which a company is functioning According
to Allen Kelly an organization is the process of identifying and grouping
of w o r k t o b e p e r f o r m e d d e f i n i n g a n d d e l e g a t i o n o f a u t h o r i t i e s a n d
responsibility ande s t a b l i s h i n g t h e r e l a t i o n s h i p o f p e o p l e e f f i c
i e n t l y t o w a r d s t h e a c h i e v e m e n t o f organizational goals. So it is
very much important to study the organization structure. The organization study
will help us to reveal the how things are coordinated in real time situations. The
personnel function is really all about motivation. It is agreed that unless
individuals

are

motivated

to

perform

effectively,

they

may

n o t a c h i e v e t h e l e v e l o f performance that is desired to them. Managerial


people
their

are

always

subordinates

to

facing
release

the
their

problems

potential

more

motivating
effectively

and thereby permit the desired goals of the organization and the needs of
employees to be achieved. The purpose of motivation is to create conditions which
people are willing to work with zeal, initiative, interest and enthusiasm so that the goals
of an organization are achieved effectively. L e a d e r s h i p i s m e a n s o f d i r e c t i n g .
I t i s t h e a b i l i t y t o i n f l u e n c e a g r o u p t o w a r d s t h e achievement of goals. It
is the human factor that helps a group identify where it is going and then motivate it
towards its goals. Without leadership, an organization would be only a confusion of the
people and machines. Training makes a very important contribution to the
development of the organizations Human Resources and hence to the achievement
of its aims and objectives. To achieve its purpose, training needs to be
effectively managed so that the right people, in the format right time and at the
right costs.

OBJECTIVES OF THE STUDY


To get an organizational exposure.
To understand the organizational structure.
To understand the functioning of each and every department
To understand the actual functioning of the organization
To understand the basic of depart mentation
To study about the employee employer relationship
To make an evaluation of the performance or the organization
To make a SWOT analysis

METHODOLOGY
The study was conducted using the method of interview and observation and also
made use of the primary and secondary data

Primary data
Primary data is collected through observation or through direct communication
with reoidentsin one form or another or through personal interviews.
The formal and informal interviews with Managers and Department heads,
employee
Direct observation

Secondary data
Secondary data are those which have been collected by someone else and which
have already been passed through statistical process. The secondary data were collected
from.

Company records
Journals
Annual report.
Website

SCOPE OF THE STUDY


The study restricted to the functioning of, ALIND LTD. The study gives a
detailed knowledge about the different functional areas like finance, marketing,
operations and their functions
The study covers the various aspects of ALIND LTD the different functioning
of ALIND LTD .The main topic include the following
Profile of the ALIND industry
Company profile
Product profile
Functioning of various departments
Findings, suggestions
SWOT analysis

LIMITATIONS OF THE STUDY

The study was limited, because the time period allotted was not sufficient to
conduct a thorough study on the functioning of the organization. The employee of the
various departments was not able to spend enough time in explaining the functions of
their department, as it affected their work schedule. Respondents were reluctant to
reveal complete details. This lack of knowledge of the respondents and the bias of them
has acted as a hindrance to the study.

INDUSTRY PROFILE

Indian steel industry plays a significant role in the countrys economic growth.
The major contribution directs the attention that steel is having a stronghold in the
traditional sectors, such as infrastructure & constructions, automobile, transportation,
industrial applications etc. Moreover, steel variant stainless steel is finding innovative
applications due to its corrosion resistive property. India is the fifth largest steel
producer at the global front and struggling to become the second largest producer in the
coming years.
The country has acquired a central position on the global steel map with its giant
steel mills, acquisition of global scale capacities by players, continuous modernization
& up gradation of old plants, improving energy efficiency, and backward integration
into global raw material sources. Global steel giants from across the world have shown
interest in the industry due to its phenomenal performance. For instance - the crude steel
production in India registered a year-on-year growth of 6.4% in 2010 and reached 66.8
Million Metric Tons.
India has emerged as the fourth largest steel producing nation in the world, as
per the recent figures release by World Steel Association in April 2011. In 2010, India
was the 5th largest producer, after China, Japan, USA and Russia had recorded a growth
of 11.3% in steel production as compared to 2009. Overall domestic crude steel
production grew at a compounded annual growth rate of 8.4% during 2005-06 to 200910. The Indian steel industry accounted for around 5% of the worlds total production
in

2010.

new research report Indian Steel Industry Outlook to 2012 says that the,
Indian crude steel production will grow at a CAGR of around 10% during 2010-2013.
Moreover, with the government proactive incentive plans to boost economic growth by
injecting funds in various industries, such as construction, infrastructure, automobile,
and power will drive the steel industry in future. The report also reveals that, steel
consumption in India is expected to grow significantly in coming years as per capita
finished steel consumption is far less than its regional counterparts.

The demand for steel in the country is currently growing at the rate of over 8%
and it is expected that the demand would grow over by 10% in the next five years.
However, the steel intensity in the country remains well below the world levels. Our
per capita consumption of steel is around 110 pounds as compared to 330 Pounds for
the global average. This indicates that there is a lot of potential for increasing the steel
consumption in India.

Immense growth potential in Indian Steel Sector

Domestic crude steel production grew at a compounded annual growth rate of 8.4% in
the last few years.

Crude steel production capacity of the country is projected to be around 110 million
tonne by 2012-13.

222 Memorandum of Understandings (MOU) have been signed with various states for
planned capacity of around 276 million tonnes by 2019-20.

Investments at stake are to the tune of $187 billion in the Steel sector.

Increase in the demand of steel in India is expected to be 14% against the global
average of 5-6% due to its strong domestic economy, massive infrastructure needs and
expansion of industrial production.

Demand of steel in the major industries like infrastructure, construction, housing,


automotive, steel tubes and pipes, consumer durables, packaging and ground
transportation.

Target for $ 1 trillion of investments in infrastructure during the 12th Five Year Plan.

Infrastructure projects (like Golden Quadrilateral and Dedicated Freight Corridor) will
give boost to the demand in the steel sector in near future.

Projected New Greenfield & up-gradation of existing Airport shall keep the
momentum up.

Increased demand of specialized steel in hi-tech engineering industries such as power


generation, automotive petrochemicals, fertilizers etc.

COMPANY PROFILE

COMPANY NAME :

Aluminium Industries Ltd

OWNER

Government of Kerala

LOCATION

Valanjavattom

FULL ADDRESS

Aluminium Industries Ltd


No-1 Ceramic Road Kundara
Tel: 0471-2332632

CHAIRMAN

Mr. C.K. VISWANATHAN IAS.

DIRECTORS

Mr. T.K. MANOJ KUMAR


Mr. N.SHANKAR REDDY IPS
Mr. MANAPANDIYAN IAS

MANAGING DIRECTOR:

Mr. N VIJYAANAND

AUDITOR

M/S SRIDHAR & Co.

Chartered Accounts,Trivandrum

(ALIND), part of the US$ 1.8 billion. Jindal Organization; redefines


dynamism. ALIND, an ISO-9002 and 14001certified company with its obsession for
excellence, is increasing its portfolio of value added products, bringing the worlds best
to India and making. an international mark. Production capabilities expanding to serve
the infrastructure sector, catalyzing economic development and growth.ALIND has its
integrated steel plant (as approved by Joint Plant Committee) The facilities including
worlds largest coal based Sponge Iron Plant (installed capacity 650000 tpa) with six
rotary kilns. Captive iron and coal mines make it one of the lowest cost producers of
sponge iron. Growth and expansion plans include an additional 720000 MTPA capacity
sponge iron plant comprising of four rotary kilns. The new plant is scheduled for
commissioning by next year end. ALIND also has 150 MW power generation facility
based on Waste Heat Recovery from rotary kilns, washery rejects and coal fines, which
is being expanded toalmost 300 MW by next year.

Strategic Intent
The Mission, Vision and Quality Policy of ALIND ltd are stated as follows:

Mission
To provide full employment to its employees & to keep financial stability of the
concern

Vision
To increase its production as double and to attract more customers.

PRODUCT PROFILE

HOT ROLLED PARALLEL FLANGE BEAMS AND COLUMN

Every product has at least one USP, which can become its strongest point-and
help the product sell more. The USP helps you position yourbrand distinctively.
Another important component in fostering a marketing style is Value Addition and Hot
rolled parallel flange beams and column are most sought after sections by structural
engineers, architects and construction companies the world over. Advantages of using
Parallel Flanges Beams and Column over ISMIBGreater choice of profilewith universal rolling method, there will be choice of large
no. of beams and column with different weight in kg/in and statically properties in
comparison to traditional I-beams on account of caliber rolling method.

Facilitate bolted or welded construction there is no taper in H beam flange. Flow


drill and Hollo-bolt helps to produce bolted joints with hollow sections.

Ensured quality of material and constructionthe Parallel Flanges Beams have


superiority in terms of strength, sectional efficiency, load bearing capacity, workability
and economy in comparison to traditional beams.

Reduced steel consumptionwith the adoption of new technology the ALIND beams
are cost effective because of less weight. The co. is able to save 15-30% of steel.

Time-saving construction-pre-forined steel frames saves on construction time, they


can be erected very fast and metal decking at floors ensures fast track, formwork-free
construction.

Efficiency in construction-pre-fabricated and sleek steel reduces construction time


which in turn reduces related costs including reduced interest during construction and
quicker revenue generation.

Fire safety-everyone knows material weaken in fire, yet ALIND ignore this fact in
design calculation. These are based on the strength of structural members at 20 degree
C, and not on their reduced strength at elevated temperature of 600, 800,1000 degree C
or more.

APPLICATIONS OF PARALLEL FLANGES BEAMS AND


COLUMNS
Industrial Buildingsthe Parallel Flanges Beams have superiority in terms of strength,
sectional efficiency, load bearing capacity, workability and economy in comparison to
traditional beams.
with the adoption of new technology the ALIND beams are cost effective
because of less weight. The co. isable to save 15-30% of steel. pre-forined steel frames
saves on construction time, they can be erected very fast and metal decking at floors
ensures fast track, formwork-free construction.
pre-fabricated and sleek steel reduces construction time which in turn reduces
related costs including
reduced interest during construction and quicker revenue generation.

everyone knows material weaken in fire, yet ALIND ignore this fact in design
calculation. These are based on the strength of structural members at 20 degree C, and
not on their reduced strength at elevated temperature of 600,800,1000 degree C or more.
Multi-storey Buildings
Road bridge composite construction
Utility buildings and car parks
Technological structures
Railways
Material handling system
Ports and harbors

WORLDS LONGEST & INDIA S ONLY 120M LONG RAILS

ALIND believes in understanding the minutes of details of rail customer in order


to provide them with foolproof solution, committed not only in supplying rails but in
facilitating the building of a system of modern rail track for the Indian railways. ALIND
has entered into a technical collaboration agreement with N7KKCorporation, Japan for
technology transfer to produce superior quality, worlds longest rails of 120m finished
length, along with Parallel Flanges beams, column and Sheet piles for first time in the
country. The agreement covers know-how transfer encompassing steelmaking,
secondary refining and continuous casting up to rolling and finishing of long, rails and
universal beams; deputation of NKK multidisciplinary specialists at the ALIND plant;
and training of ALIND personal at
NKK steel works in Japan.

NKK is already supplying rails for high-speed bullet trains, Shinkansen in


Japan. This technical collaboration shall enable production of long rails requiring far
less joints in tracks, ushering a new era in rail travel safety and introduction of fast trains

in India a reality. Railways, the backbone Indian economy covers 63,000 route
kilometers. -It has the largest network in Asia and second largest in the world. Carrying
13 million passenger and over 1.3 million tones of freight daily, it is most important
means of transport in the country. Efficient transportation system is essential for
development of an industry, business and trade and brings synergy in the development
of region across state boundaries. As a step toward forward integration ALIND is
setting-up a rail & universal beam mill to produce superior quality worlds longest, 120m
long, finished rail for the first time in India. A Flash-butt welding plant, with state-ofart technology, is also being installed to produce long welded rails up to 480m for direct
transportation to Indian Railways construction sites.

Advantages:
With the availability of 120 m long rails, there will be drastic reduction of weld
population in Indian rail tracks (from 160 welds per track km presently to 17) resulting
enhances safety and cost reduction. The performance of Indian Railways would
improve on account of enhanced safety, increased reliability, comfort and prolonged
rail life.

Rail Steels Quality & Product Range:

Our comprehensive range of rail steels can be broadly classified as:Normal grade
typified by 710 N/mm2 minimum UTS Wear resistant Grade typified by 880 N/ mm2
minimum UTS to 1080 N/mm2 UTS. Rails with higher UTS value as may be specified
by international or domestic customers can be produced. Rail steels are produced in
bothstandard carbon grades and micro-alloyed grades to meet the strength and quality
requirement. The quality assurance system of ALIND today is certified by BSI-London
for Quality BS:EN 9002:2000 and BS: EN 14001:1996 for Environmental Management
System. Besides autonomous responsibility for self-checking, wherein products are
qualified by self-certification, i.e. extensive internal and external inspection in
conformity with customer requirements; we also follow the system of approval by third
party inspections prior to dispatch.

Today, the standard requirements of rails must meet the operating needs ofthe
railways for at least 20 years. It is this stringent quality norm which guides the company
to manufacture products of high standards, placing ALIND at the forefront in the supply
of rails.

Specifications of Rails:

ALIND rails are being rolled to different sections ranging from BS-75R (37.1
Kg/m) to UIC-70 (70 Kg/m): conforming to Indian Railways as well as
internationalspecifications. Rails can be supplied in customized finished lengths
ranging from 13 m to 120 m and flashbutt welded rails from 240 m up to 480 m. Some
of the important specifications are listed below:

S. No. Rail Sections Sectional Weight (kg/m) Specification*

1. P-75 74.41 GOST


2. UIC-60 60.34 UIC
3. UIC-54 E 53.823 UIC
4. IRS-52 51.89 IRS
5. UIC-50 50.88 UIC
6. TCDD-49 46.303 S-49
7. 48 Kg SAS 47.60 SAS
8. BS-90R 44.65 BS
9. BS-75R 37.1 B

ORGANIZTIONAL
CHART

DEPARTMENTS

Human Resource department


Finance department
Production department
Planning department
Commercial department
Purchase department
Marketing department
Quality Control department
Store department
Safety department

HUMAN RESOURCE DEPARTMENT

Human Resource Department is concerned with the peoples dimension in the


organization. Here in ALIND Ltd, Personnel officer is the head of Human Resource
Department Under him there is the Personnel Office, Time Office, and an Establishment
Section.

Personnel Office
The Personnel Office deals with recruitment. Wage administration, promotion
and industrial relations, disciplinary actions etc. The employees are appointed through
Pecan employment exchanges. The additional employees required are taken as
apprentice or on contract basis. Selected persons could get 6 months training efficiency
in concerned on the supreme quality while selecting managerial staffs. Presently there
are145 permanent employees including the managers and engineers. Out of which
131employees are presently working and the rest 14 are on deputation and on long
leave. The temporary posts consist of more than 100 apprentices and contract based
workers. Contract based workers consist of former employees who took VRS from the
company and external persons who are expert in this field. The peoples recruited could
get training and also various seminars and classes are conducted.

Functions
To recruit right kind of persons for the right job at the right time.
To arrange for training programmers.
To evaluate performance of the employees.
To the handle the grievances of the employees.
To provide welfare facilities to the employees.
Provide and maintain safety measures.

Formulating policies
Statutory Labor Welfare Facilities provided (Personnel Office) in ALIND Ltd

Canteen Facility
The Company provided a canteen for its members. Here foods are provided at a
rate of Rs 8 per day for permanent employees. Working time of canteen is 8 hours.

Rest Rooms & Lunch Rooms


Adequate suitable rest rooms and lunch rooms (with provisions for drinking
water) where workers can eat their meals brought by them are provided

Facilities for Sitting


Company offers very good sitting facilities for employees in their working spot

Medical Facility
The company arranges medical checkups for all employees once in a year. Health
data cards are then issued to all the employees. The medical facilities are provided to
employees as well as his/her family members.

Risk Allowance
When an employee meets with an accident, during employment for the
disablement compensation is paid as per the rules of the Workmen Compensation Act.
In addition to the ALIND LTD allows an excreta payment of loss of wages i.e., 50%
of the (basis DA) due to such accident.

Drinking Water Facility


An effective arrangement of drinking water for the workers in each section or
department is available. Also arrangements are made for cold drinking water.

Recreational Facility
Recreational club is organized in the company premises and Rs 10/- per month
are revised from each employees.
A well functioned time keeping system is used by ALIND ltd for proper time
keeping. For this purpose an electronic punching system is maintained by the Time
Office.

Statutory Labor Welfare Facilities Provided (Time Office) in ALIND LTD


Working Hour
a) First Shift6.30 am to 2.30 pm
b) Second shift2.30 pm to 10.30 pm
c) Third Shift10.30 pm to 6.30 am
d) General Shift8.30 am to 5 pm

Overtime Allowance
Overtime will be paid at double the normal wages. (Basic + DA) to all the
eligible staff and workers for those who are engaged in overtime

Leave Facilities
a)Casual Leave-15 days in a year b)Earned Leave-30 days in a year c)Medical
Leave-7 days

Conveyance Allowance
Officers who have put in a minimum of 15 days attendance in a month will be
eligible for getting an conveyance allowance amount of Rs 400/-

First aid Appliances


First aid boxes or cupboards equipped with the prescribed contents is provided
and maintained in ALIND LTD . This is readily accessible during all working hours.

Establishment Section
All the wages, salary, administration and labor welfare facilities are controlled
by establishment section in ALIND LTD .

Statutory Labor Welfare Facilities Provided (Establishment Section) in


ALIND LTD

Wages and Salaries


To provide wages and salaries to the employees

Gratuity
The payment of gratuity act 1972 has been amended by the payment of gratuity
(amendment) act 1987. This came into force from 01-10-1987. Maximum salary taken
will be Rs 3500 for gratuity calculation. In the amendment act of 1987, the maximum
amount of gratuity payable to the employees will be Rs 3.5 lakhs. It is given for good
faithful service and efficiently rendered to whole time employees of the company.

E.S.I
The employee of the ALIND LTD covered by the ESI Act and contribution is
deducted from the employees salary since 01-11-1992. Employees whose salary does
not exceedRs10000/- per month are covered under this act. When employees are
registered with ESI, they are entitled to get the following benefits from ESI:-

Sickness Benefit
7 days full pay or 14 days half pay sick leave can be availed by the employees at
any time. If more than 30 days leave is required, medical certificate from an authorized
medical attendant should be produced.

Disablement Benefit
An injured person is given free medical treatment and all the expenses incurred
by him. The total expense in connection with the treatment will be reimbursed.

Dependent Benefit
Legal heirs of the employee get the dependent benefit after his death. Main
dependent are job and compensation.

Maternity Benefit
Women employees shall be allowed maternity leave with full pay for 90 days
after the date of confinement. In addition, one month leave with wages is also allowed
to the employee who suffers diseases arising out of delivery.

Funeral Benefit
For the funeral of employees, the funeral benefit provided is Rs 1000/-

Provident Fund
According to employees Provident Fund Act 1952, the employees of the
company are entitled to contribute a certain percentage of salary or wages to this fund.
The rules followed in ALIND LTD are known as Employees Provident- Fund Rules.
The fund shall deem to have been established on and from 16th
February 1956. A worker is eligible to get Piffle he had completed continuous
six months of regular service or 120 days during the period of 12 months. Under this
scheme, repayable loans are available to employees in liberal terms. As the scheme is
recognized, employees get benefit in income tax also.

Bonus
Bonus is paid in accordance with the guidelines issued by the government from
time to time. An employee whose salary is less than Rs 2500/- per month is eligible to
get bonus. 8.33% of the total salary is the minimum bonus to be paid.

House Rent Allowance

House rent allowances are allowed at the following rates.

A) Salary less than Rs 2500/- is eligible to get HRA = RS 145/-

B) Salary less than Rs 3000/- is eligible to get HRA = RS 165/-

C) Salary above Rs 3000/- is eligible to get HRA = RS 185/-Uniform Allowance

Uniform allowance
Provided to workers is Rs 525/-, once in 2 years.

Footwear Allowance
Footwear allowance is provided to the workers in the spot welding shop, paint
shop, mechanical maintenance shop etc. is Rs 425/- in every 2 years

FINANCE DEPARTMENT

Finance refers to money or funds available to a firm. A business needs at every


step to start a business, to operate it and to expand or modernize its operations. Finance
is required to bring a business into existence, to keep it alive and to see it growing. The
management of finance is essential for the success of the business. Finance manager is
the head of the finance department. He looks after the budget, finance posting and audits
of accounts. The senior officer accounts takes charge to look into the day today affairs
of the financial of the company. The senior officer establishment deals with calculating
employees wages provide provident fund, ESI etc. The cost section prepares cost sheet
and evaluate job card. There is an internal audit section that deals with verification of
accounts.
The ALIND Ltd has an initial capital amount to 4 crores.

TAX:

ALIND ltd has to pay the following taxes:Income tax.


Sales tax.
Excise duty.
Educational cess.

The sales tax charged per meter in Kerala is at the rate of 12.5%, whereas, if sold
to other states outside Kerala, the rate is only 4% per meter (i.e., Central Sales tax).
Educational cess is 2% on the excise duty. Presently, the excise duty is 16% on one
meter and the educational cess 2% of the 16%.

Job Card:
It is used to calculate the quality of products individual production time. The
important registers maintained by the finance are given below:
Purpose Journal.
Sales Journal.
Payroll.

Sections of Finance Departments:


The various sections under finance department are:

Book and Budget.


Sales
Priced Stores Ledger.
Costing.
Establishment.

Book and Budgets:


Collection of accounts from different sections.
Preparation of trial balance and final accounts.
Coordination with auditors.
Helps statutory auditor.

Sales:
Invoice generation.
Billing
Collection
Debtors ledger.

Price Store Ledger:


This section is responsible for maintaining accounts for the stores in monitory
items.

Costing:
Each product is having a separate section. It sets the cost of that which issued by
commercial group to add profit margin to set the price.

Establishment:

This section is responsible for cash disbursements and payment. It handles all
the payment said to the employees.

Benefits:
Medical reimbursement

Provident Fund

Incentives

Loans and advances etc.

Bills payable:
This section handles the payment to be made to the suppliers once the SRV
(Store Receipt Vouchers), PO (Purchase order) and invoice are received, cross
verification of the PO terms, quality and quantity assurance with the SRV and invoice.
Once all the claims are found satisfactory, the payment is issued as per the terms.

Other Important Functions


Payment to establishment
Wages
Salary

Payment to suppliers
Indigenous Purchase
Important Purchase (Purchase, Bills)

Terms of payment for purchase are


Letter of credit (L/C)
Advance (DD)
Cash and delivery (COD)
Site Draft (SD) (If suppliers are not familiar)

Service Bills
This section maintain bills for payment of
Factory service
Maintance (Civil and mechanical)

Internal Audit
The main function of internal audit are
Fault recognition
Suggestion for improvement
Assisting working level people
Internal audit conducts site audit, once in a year.

PRODUCTION DEPARTMENT
Structure of Production Department

In every organization, production department carries the main function i.e.,


production. Some companies produce various products and some a single product.
ALIND ltd is a company, which produces IMFL, DENATURED AND METYLATED
SPIRIT and RECTIFIED SPIRIT. Before production of electronic meters the company

was manufacturing mechanical meters. For this they have a full-fledged manufacturing
unit.

Objectives
To achieve monthly production target as per customer requirement
To improve quality by reducing process rejection below 3%
Increase productivity by effective utilization of resources
Maintain production and discipline in the section
Coordination of workers and shop floor activities
Share information
In ALIND LTD, there are two well-established production units

METHODS OF PRODUCTION ARE RESTICTED DUE TO COMPANY


POLICY

PLANNING DEPARTMENT
Structure of Planning Department

The objective of this department is to achieve monthly target as per production program
issued from marketing department. SMW has the overall responsibility of this
department. He is responsible to the following:
Ensuring targeted production.
Authorization of annual/monthly production plan based on budget. The
responsibilities of SEW are:
Preparation of annual/monthly production plan.
Planning, scheduling and dispatching of job cards.
Identifying the gap in the implementation process.
Responsibilities of other functionaries involved are given against individual
activities.

The scope of this department is:


Planning in respect of components relating to the production of products.
Testing the products
Finishing and packing the products
Scheduling of operations in respect of manufacture of components.

COMMERCIAL DEPARTMENT
Structure of Commercial Department

Overall responsibility for marketing policy rests with GM. Coordination commercial function including
marketing. Commercial Department include sales department also.
Procedures
The company markets its products in 3 ways. Firstly, responding to tenders and quotations as
per customer requirement and specification. SMM shall consolidate the requirements of the product,
taking into consideration the customer requirements, stated or unstated, statutory and regulatory
requirements or any other additional requirements determined by the company, if any, including
requirement. He shall prepare note incorporation the above requirements and submit the same to
the Apex Management for review and approval. Secondly, through approved dealers or distributors.
Order for ALIND LTD standard products are normally handled through dealers. Changes occur in the
case of specifications additional features or standard products.
Thirdly, its through counter sales. When a customer approaches directly to purchase the
product of the company, he has to fill up the order format and if his requirement is in line with the
company specification, company registers the order and sales is affected.
The function of this department also includes handling, storage, packaging, preservation and delivery
of finished products.

PURCHASE DEPARTMENT
Structure of Purchase Department

This department deals with the purchase of raw materials from various sources.
In Elite, raw materials are purchased through inviting tenders from suppliers 100% of
raw materials are purchased from outside suppliers. Production department gives order
to the purchase department to purchase raw materials.

Purchase Policy:
ALIND LTD has a purchase policy to purchase raw materials in right quantity
and quality aright time, at right place from a right source. The source of materials is
selected by checking the samples collected from different suppliers. Acceptance of
sample can be done as per the recommendations from the quality assurance department.
If the samples are qualified, the criteria the suppliers can be included in the list of
qualified suppliers. Tenders should be sent to qualified suppliers only. They only have
the ability to provide bulk of raw materials of the company. Raw materials required for
the company as follows,

Raw materials.
Components.
Consumables.
Tools.
Stationeries.
Capital goods.
Sub-assemblies.

Services.
Spare parts.

The responsibility of purchasing material rests on the SO purchase. He is


responsible for procurement, components and raw materials.

Purchase procedures:
All the purchase shall be made by purchase department.
Bill of materials shall be given by the production department.
Material intends in forward to purchase department against each projects.

Other items except capital goods required by various departments are intimated
to store who prepares purchase intend and forward the same to giving full specification,
samples of necessary requirement of capital goods is identified in various departments
and set to purchase department often getting approval from the competent authority.

MARKETING DEPARTMENT
Structure of Marketing Department
The scope of this department is to cover all the products of the company sold
directly to customers against order or through approved dealers/distributors appointed
by the company. Overall responsibility for marketing policies rests with GM,
coordination of commercial function including marketing. This function rests with
SMM.

Duties of SO-marketing:
The responsibility of marketing of motor starters and other products rest with
SO-marketing. The responsibility of the SO-marketing is to maintain and promote
dealers, preparation and providing production programmer to workers, arranging
dispatches as per schedule, payment follow up, customer coordination scrap sales and
other assignments given by SOM.

Duties of SO-sales
The responsibility of marketing of products and contractors rests with the section
officer-sales. The responsibility of the section officer-sales is to assist SMM in
achievement of departmental objectives and record keeping, tendering and other
assignments given by him.
The other duties of section officer-sales are as follows:

Preparation and providing production program to works.


Arranging dispatches as per schedule.
Payments follow up.
Customer coordination.
Compliance of excise formalities.
Stock maintenance.
Arrange packing.
Invoicing.
Payment collection and filing excise return
Payments follow

QUALITY CONTROL DEPARTMENT


Structure of quality control department

This department is concerned with checking the quality of products made in the
company. At each and every stage of production, the quality of the product is checked.
Before it becomes the final product, it is cross checked.

Quality Management Principles:


ALIND LTD has framed its quality policy and manages its quality policy
manage its quality system following the eight management principles of ISO:
9000:2000, listed below.
1) Customer Focus:
ALIND LTD meets customer requirements and strives continuously to meet
customer expectation by determining and reviewing customer requirements and
measuring customer satisfaction.
2) Leadership:
Top management of ALIND LTD establishes and provides leadership and unity of
purpose and direction through management review meetings and provision of resources.
3) Involvement of People:
ALIND LTD believes that involvement of all employees is essential for the better
functioning of the organization. This is achieved by planned training as given in the
guidelines for training.
4) Process Approach:
The departmental guidelines of major functions follow a process approach and include
PDCA cycle, which provides proper direction for achieving results when resources are
managed as a process. It also helps to provide direction in taking planned corrective
actions.
5) Continual Improvement:
Continual improvement of QMS is achieved through measurement of quality objectives
achieved, measurement of customer satisfaction.
6) Factual Approach in Decision Making:
ALIND LTD takes effective decisions based on results of analysis of data. This is
achieved through the interactions in the management meeting on the performance of
individual departments.
7) Mutually Beneficial Supplier Relationship:
ALIND LTD tries to maintain beneficial and a mutual relationship with supplier.

Quality Assurance
The SE Quality Assurance is in charge of quality checking of the raw material samples.
The quality assurance department also checks quality of incoming raw materials and
the products in process. Inspections of finished goods are done by AE inspection. All r
products in the company are handed over to sales department. The sales returned meters
are checked and corrected heres a commitment toward Total Quality Management in
line with CII/EFQM guidelines, annual improvement action plans are being
implemented involving techniques like
Benchmarking.
Business Process
Six sigma.
Kaizen

These are resulting in cycle time reduction for further improvements in delivery and
technological process up-gradation, leading to improvement in quality profit to products
and enhanced customer focus on a continuous basis.
To fulfill its role as a corporate citizen towards protection and conservation of
the environment and ensuring that its products and systems also meet such
requirements, ALIND LTD has finalized a Corporate Environment management Policy
for ISO 14002 Certification.
For ISO 9001 certification, the International Audit is done once in six month by
the ALIND LTD personnel independent of their functions and External audit is done by
Bureau Verities Quality International

Management Responsibilities Regarding Quality


Management must define and document its policy objectives and
commitment to quality.
Ensure that it is understood and implement at all levels.
Define responsibilities and authorities.
Identify verification and assign to competent personnel with adequate
resources.
Appoint management representatives.

Quality System Standards


ISO - International Organization for Standardizations

Series of Standards. ISO 9000:

ISO 90001:2000.

ISO 90001:
Covers management responsibility, contact review, control of design, purchase,
testing storage, etc.
All units of ALIND LTD are ISO: 9001 certified. Certification Agency BVQ1
(by Bureau VERITAS Quality International).
International audit once in 6 months
ISO: 9000-2000 Version Brief Overview:
Revised standard is compatible with principles of ISO 14000 and TQM. It centers on results
achieved through P-D-C-A (Plan, Do, Check, Act) and processed approach.
Focus on business needs, continue improvement through measurable performance parameters
leading to customer satisfaction.

Mandatory documentation requirements simplified required in 6 of the following areas:


1) Documentation control.
2) Quality records.
3) Internal audit.
4) Control of non-conforming products.
5) Corrective action.
6) Preventive action.

ISO 14000 (environment management system)


1) Converts Statutory, Regulatory Acts (pollution, chemical treatment, discharge etc.)
2) Energy consideration, resource utilization.

Quality issues faced by ALIND LTD:


1. Performance/Function.
Input to output performance.
2. Dimensional.

3. Completeness.

Mounting.
Fitting.
Connections.
Layout.
Foundation etc.

Incomplete suppliers.
Incomplete finish.
Incomplete spares.
Incomplete tools.
Incomplete documents (drawings, test reports/certificate).
Inadequacy (technical information)
Not clear/legible

4. Quality documentation.
Inadequacy (technical information)
Not clear/legible.

5. Delivery.
Not in sequence as required by site/customer.
6. Others.

Finish.
Alignment.
Appearances.
Ease of handling/maintains.
Ergonomics

7. Response time, behavior and attitude of ALIND LTD personnel towards


customers.

TQM Model: The Ten Essential Steps:


Management readiness.
Customer Supplier partnership.
Environment scanning.
Existing system.
Strategic planning
TQM training.
Disciplined system implementation.
Process enhancement.
Performance evaluation.
Continuous improvement.

STORE DEPARTMENT
Structure of Store Department

SMW is the overall charge of stores. Store assistants have the individual
responsibility relating to all operations of the respective sub-stores and to keep the
records properly. The duty of assistants is to count the quantity of goods. There are also
trainees.

Functions of Store Department

Receiving material/accounting.
Issue of materials.
Items of repair/rectification/calibration/refilling sub assembly/receipt of item for
outside issue.
Inventory management.

Procedure:
For making the function of store department more effective, the store is divided
into different sub-stores, namely:

General store.
Raw material store.
Electronic store.
Sugar store.
Tool store.

Stationary store. The main objective of store department is the materials to be stored
in proper places with proper accounting. Storage is done under preserved condition
whenever necessary. Identify items, which deteriorate quality from past experience.

SAFETY DEPARTMENT
Structure of Safety Department

Every organization must have a safety department for the safety of workers.
Though the frequency rate of accidents is comparatively low, the management is keen
to take interest to reduce the accidents as far as possible by engineering methods and
personnel equipments at inevitable stages.

Safety precautions at ALIND LTD:

For making the functions of the safety department, ALIND LTD takes the following
steps:

Safety committee.
Safety steward committee.
Safety training for executive supervisor and artisans.
Accidents investigation reporting system.
Issue of safety equipment.

Objectives of the Safety Committee:


Objectives of the safety committee are as follows:
Control of accidental hazards.
Promote safety consciousness among employees.

Communicate to the top management regarding safety aspects. Safety steward


will entrusted with the responsibilities of continuous watchfulness. Persuasion and
correction of fellow employees to enable safe methods of work being is adopted. In
addition to the above, award of rolling shield for safety and cleanliness was introduced
during the year 1983 in this unit. The rolling shield will be awarded to sections that
maintain goods, safety conditions of working and maintain clean line

SWOT ANALYSIS

SWOT Analysis of a company reflects the effectiveness of the functions of the


company in each and every department. Brainstorming technique was adopted to find
the SWOT. It is a group creativity technique designed to generate a large number of
ideas from a group of employees. Suggestions are evaluated and the analysis is made.

STRENGTH:
Quality of Products: The products of ALIND LTD possess high quality. It is an ISO
9001:2000 certified company. The company offers 15 years warranty for its products.
Before getting approval. The company products pass through different types of tests.

Customer Focus: The Apex Management Team of ALIND LTD shall determine,
understand and try to satisfy the needs and expectations of customer with the aim of
enhancing customer satisfaction. The Marketing Department has the primary
responsibility and Quality control has the secondary responsibility and all other
departments have the responsibility for commitments for ensuring customer
satisfaction.

Involvement of workers is high: ALIND LTD believes that involvement of all


employees is essential for the better functioning of the organization. This is achieved
by planned training as given in the guidelines for training. Top management of ALIND
LTD establishes and provides leadership and unity of purpose and direction through
Management Review Meetings, Monthly Performance Review Meetings and provision
of resources.

Process Approach: The departmental guidelines of major functions follow a process


approach and include (PDCA- Plan, Do, Check, Act) cycle, which provides proper
direction in taking planned corrective actions.

Continual Improvement: Continual Improvement of Quality Management Systems is


achieved through measurement of quality objectives achieved, measurement of
customer satisfaction, resolution of departmental non-conformances, implementation of
corrective and preventive actions and internal audits. These are reviewed in the
management review meetings.

Mutually beneficial supplier relationship: ALIND LTD tries to maintain beneficial


relationship with suppliers and thereby enhance ability of both to create value. The
organization continually measures the performance of supplier sand gives them
feedback and possible help to improve performance. It also gives them chance to assess
the organization on the above chance.

Skillful workforce: ALIND LTD shall determine the competency of the personnel
performing the work affecting the Quality Management Systems on the basis of
assessment done by immediate superior. The identified needs shall be consolidated for
preparation of the training plan for satisfying the training needs. A yearly Competence
Improvement Plan covering training, exposure visits, self-learning etc. shall be
prepared. As a result the workforce has expertise in the respective areas.
Good Industrial Relations: The relation with the top management and workers are
cordial. Not a single working day was missed due to labor unrest in the past 30 years.

WEAKNESS:
High employee turnover: With the introduction of VRS, the person shaving
experience left the company. This resulted in the reduction of experience hand in the
company.

Inadequate Performance Appraisal: The prevailing system of performance appraisal


is inadequate in the present scenario.

Lack of Motivational Techniques: The Company provides mandatory welfare


measures to its employees. But motivational technique like promotion takes too much
time.
Time consuming policy decisions: ALIND LTD is a government company. So the
decisions related to policy takes comparatively longer period.
Poor financial stability: For years, the company depended on only one customer and
the customer gained high bargaining power. The government policies also affected the
performance of the company. This lead to financial instability.
Inadequate R&D: Due to poor financial stability, company could not set aside much
fund for R&D purposes. This prevented the company from introducing new products.
Because of this, the competitors which were established after ALIND LTD overtook
the company in many areas.

OPPORTUNITIES:

1) Growing Steel and Power Industry


2) Availability of skilled labours and policy Support.
3) Huge export opportunity
4) Availability of well connected road network

Threats:
Competitions: the company is facing tough competitions from the private and public
sector undertakings

Emerging of modern technology: Due to globalization modern technology were


available in the market. The competitor make s of that.

FINDINGS & SUGGESTION


FINDINGS:
The major findings are:
Good reputation of the company: Quality products and the government brand name
is a major advantage for the company. It as a wide acceptance among the customers
since it possesses a good customer handling and great quality products.

Well-disciplined staff and employee: The work force is the strength of the company.
All the workers work whole heartedly for the progress of the company even in bad
times. There was no labor conflict in the past 30 years.

Hard working skilled labor force: The labor force is very skilled. The company recruit
fresh technicians and give extensive training to them.

Good management employee relationship: The grievance re addressable system is


very effective in the company. The company believes in the policy Prevention is better
than cure, and it results in a good employee employer relationship.

Effective attendance system: The Company follows a punch card system. By which,
the company can find out the total hours an employee spend in the working place.

Harmonious Industrial Relations: The HR department makes sure that every


reasonable need of the employee is met. The company considers employees as their
greatest wealth.

Maximum capacity utilization: The company plan their personnel needs very
effectively and recruits the correct number of persons. This ensures the maximum
utilization of resources.

Regular feedback system: The feedbacks from the customers are collected in time
with a view to improve the operational efficiency. For this the customers are contacted
personally after a certain period of delivery. The company provides feedback forms to
the customers.

Good HR planning: HR planning is excellent. The company calculates the personnel


requirement well in advance and act accordingly. Most of the time their planning is
accurate. This ensures the effective utilization of resources.

Solvency: Solvency of the company is good. It maintains a favorable solvency ratio.

Its also noted that:


1. It is found that the firm is not maintaining the standard norm of current ratio in standard
level (2:1) any of the five years covered under the study. Hence the liquidity position
of the firm is not sound.
2. The quick ratio and the absolute ratio also supported the finding that the liquidity
position of firm is not good.
3. The working capital turnover ratio position shows a tremendous progress from negative
increase to positive increase.
4. The current assets turnover ratio shows the stability over these years except 2007-08
and 2010-11 where the ratios are 3.42 and 3.97respectivly.
5. The collection period has increased from 26 to 58 days during the five years covered
under the study. It shows that the receivable management is not efficient.
6. The period of converting raw materials to finished goods has decreased from 65 to 27
days. It indicates the efficiency of inventory management system.
The schedule of changes in the working capital reveals that the working capital
position is improving year after year.
7. Gross profit ratio of the firm shows slight increase every year, the gross profit ratio
keeps fluctuating.
8. Net profit ratio shows a decline up to 2008-09 and it increases there after due to the
efforts taken by the company for reducing the administration expenses.
9. The authorized share capital of TSC ltd. is Rs.6 lakhs.
10. KSBC has the monopoly right to distribute liquor throughout the state.

SUGGESTIONS:
The major suggestions are:
Employee Turnover should be minimized: In the long run, this may seriously affect
the company. So the real reasons behind this should be found out and corrective
measures should be taken
Performance appraisal system should be improved: At present the companys
performance appraisal system is not up to the mark. The companys techniques are little
outdated. A 360 degree appraisal system can be introduced.

Improve the motivational techniques: The motivational techniques need a revision


on the grounds of increased employee turnover. The company should make the
employees more loyal to the company. For this timely promotion, incentives and plans
like ESOP (Employee Stock Option Program) may be introduced.

More marketing efforts should be made: The new technologies in the information
technology can be utilized for that. The website of the company should be converted
into an E-commerce portal. All the companys products should be listed with pictures
and all the specifications and facilities for online trade should be made.

Infrastructure should be developed for improving the output.


Technology transfer should be established with some reputed organization.
Company should appoint marketing executives.

CONCLUSION
The organizational study conducted in ALIND Ltd was really beneficial for me. It
provided a lot of information on whats actually happening in an organization, the
problems they have to face, the factors influencing them, various departmental
functions and relationship between employees. Although ALIND ltd is a Kerala
government undertaken company, the changing governments sometimes neglect or
avoid the company for bringing it on successful path. The hardworking managers,
staffs and workers are the main assets. The company has yet not changed the
technologies and this made the competitors to gain success over them. The re-opening
of closed porcelain division will help to bring the company to previous status to some
extent. As there is a huge amount of electricity is needed, the government has to make
a contract with KSEB for providing electricity at low cost. The study brought, put
many features and functions of the organization.

BIBLIOGRAPHY
Books & Journals
Harte John (1997) Management Crisis & Business Revolution,Transaction
Publishers.
Pandey.I.M (2006) Financial Management, New Delhi, VikasPublishing
House Pvt Ltd.
Kotler Philip, Lane Kevin, Jha Abraham and Mithileswar(2007)Marketing
Management- South Asian Perspective, New Delhi, PearsonPrentice Hall.
Sekaran and Uma(2007)Research Methods for Business- A SkillBuilding
Approach, New Delhi, Wiley India.5.Company Journals.
ISO 9001:2000 Quality System Files

Websites
www.quote.com
www.tradeindia.com
www.surfindia.com

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