KEL Report..

AN ORGANIZATION STUDY AT KEL
1.1
INTRODUCTION
An organization study is a systematic and analytical cruise to seek the truth of organization business, provide an insight in the practical field of management. An organization is an engine that works together to the prosperity. This is an organization study report a Kerala Electrical and Allied Engineering company limited (popularly known as KEL), Kundara unit. Kerala Electrical Ltd (KEL) was started as Electrical and Allied Industries Pvt. Ltd (EAIT) at Kundara in 1946 and later in1964 it was taken over as an undertaking of Govt. of Kerala engaged in the manufacture of Electrical engineering goods.KEL has also a well organized quality control division. KEL is one among the largest, most vibrant and productive public sector undertaking, under the government of Kerala. The prime consideration is selection KEL for the study is that, as the company works for the past 98 years .It would be equipped with well established organization structure department and facility. So study and analysis of this organization, its status, various issue and responsibility of the individual in different levels will help to obtain a vast level of Knowledge. Thus studying this various aspects of organization is great benefit to the management students. So this organization study helps me to understand practical knowledge about the function of an organization.
Institute of Management in Kerala, Kundara
1.2 OBJECTIVES OF THE STUDY

Some of the objectives of conducting the organization study is as follows:
To study about the organization structure.
To understand about the function of various department.
To know the financial position of an organization.
To identify the strength , weakness, opportunities and threat faced by the organization. To understand the different business operations carried out in the organization. To know the various departments such as Marketing, Finance, Operations, and Human Resource etc... and its activities and functions.
To conduct SWOT and Porters five for analyzing competitive strategies.
To relate theories and concepts in to practical and their by to identify and Suggest feasibility solution and recommendation.
1.3 METHODOLOGY
Both primary and secondary data were used for the study
Primary Data
In this organization study the role of primary data is important. Because most of the data are getting through primary sources like direct interview, face-to-face communication observation etc... In this study the primary data sources are: Discussion with the department heads. Discussion with divisional heads. Personal interaction with workers in the company. Through observation of function of organization.
Secondary Data
In this organization study the secondary data is very important than that of primary data. Published documents, journals and magazines are the important secondary data. So these are also needed for the completion of the organization study.
1.4 SCOPE OF THE STUDY

Organization study is used to know the working of an organization and its various departments. It helps to analyses how well the organization performed its activities. This study helps to interact with the organization executive of the company. Organization study mainly deals with the environmental analysis of the organization based on the assumption that both the External and Internal factors control the organization. The organization study incorporates the structure, product, policies, the different activities and a SWOT analysis of the organization. This study helps in practical aspects of the theories which are learned in the classroom.
1.5 LIMITATIONS
Organizational limitations Most of the employees were very busy with their office work. Some of the records were kept confidential so that data were unable to be collected.
Time constrains This is a Fifteen day study and this time is not enough to study an organization thoroughly.
Possibility of biased information. In an organization there is a chance of giving biased information from the executives to the researchers.
1.6 CHAPTERISATION
CHAPTER 1 deals with the introduction of the topic .It contains the objectives of the
study, its scope, methodology and limitation of the study .
CHAPTER 2 deals with the industry profile. CHAPTER 3 deals with the company profile and the various services provided by the
company.
CHAPTER 4 deals with the organization structure and the functioning of the
departments.
CHAPTER 5 deals with the objective wise analysis of the study. CHAPTER 6 deals with the SWOT analysis and Porters five force model analysis. CHAPTER 7 deals with findings, suggestions and conclusions
2.1 INDUSTRIAL PROFILE
2.1.1 ELECTRICAL INDUSTRY
Introduction
The energy is neither be created nor be destroyed but it can be converted from one form to another. The generation of an electrical energy is nothing but the conversion of various other forms of energy into an electrical energy. The various energy sources which are used to generate an electrical energy on the large scale are steam obtained by burning coal, oil, natural gas, water stored in dams, diesel oil, nuclear power and other non-Conventional energy sources. The electrical power is generated in bulk at the generating stations which are also called power stations. Depending upon the source of energy used, these stations are called thermal power stations, hydroelectric power stations, diesel power station, nuclear power stations etc...This generated electrical energy is demanded by the customers. Hence the generated electrical power is to be supplied to the customers. The electrical power industry provides production and delivery of electrical power (electrical energy) often known as power or electricity in sufficient quantities to areas that need electricity through a grid. Many house hold and business need access to electricity, especially in developed nations, the demand being scare in developing nations. Demand for electricity is derived from the requirement for electricity in order to operate domestic appliances, office equipment, industrial machinery and provide sufficient energy for both domestic and commercial lighting, heating, cooking and industrial processes. Because of these aspects of the industry, it is viewed as a public utility infrastructure.
In many countries electric power companies own the whole infrastructure, from generating stations to transmission and distribution. For this reason, electric power is viewed as a natural monopoly. The industry is generally heavily regulated, often with controls and is frequently government-owned and operated. The nature and state of market reform of the electricity market often determines whether electric companies are able to be involved in just some of these processes without having to own the entire infrastructure, or citizens choose which component of infrastructure to patronize.
2.2 WORLD SCENARIO
Although electricity has been known to be produced as a result of the chemical reactions that take place in an electrolytic cell, Since Alessandro Volta developed the voltaic pile in 1800, its production by this means was, and still is, expensive. In 1831Michael Faraday devised a machine that generated electricity from rotary motion but it took almost 50 years for the technology to reach a commercially viable stage. In 1878, in US, Thomas Edison developed and sold a commercially viable replacement for gas lighting and heating using locally generated and distributed direct current electricity. The worlds first public electricity supply was provided in late 1881,when this streets of Goldalming in the UK were lit with electric light .This system was powered from a water wheel on the River Wey which drove a Siemens alternator that supplied a number of arc lamps within the town. This supply scheme also provided electricity to a number of shops and premises. Coinciding with this in early 1882, Edison opened the worlds first steam powered electricity generating station at Holborn Viaduct in London, where he had
entered into an agreement with the City Corporation for a period of three months to provide street lighting. In time he had supplied a number of local consumers with electric light. The method of supply was direct current (DC). Teslas alternating current system remains the primary means of delivering electrical energy to consumers throughout the world. While high voltage DC is increasingly being used to transmit large quantities of electricity over long distances or to connect adjacent asynchronous power systems, the bulk of electricity generation transmission, distribution and retailing take place using alternating current.
2.3 INDIAN SCENARIO
Electrical Industry came into existence after the period of the First World War, and the first one was a fan industry in Calcutta in 1921.The manufacturing of the electrical equipments like Transformers, Generators, Insulators etc... took up later. Heavy electrical industry covers units manufacturing large plants and machinery required for power generation, transmission, distribution and utilization. These include turbo generators, boilers, various types of turbines, transformers, motors and switch gears. The major areas where the heavy electrical equipments are used are the large projects for power generator including nuclear power stations, Petro chemical complexes, chemical plants, integrated steel plants etc...The share of the domestic equipment is about 66% of the countrys generation capacity. The industry has also established a strong manufacturing base to the requirement for the equipment for the equipment for the nuclear power plants in the country. The domestic heavy electric equipment manufacturer are making use of the developments in the global market with respect to the product designs and upgrading of manufacturing and testing facilities. The industry is also competitive in the field of design
and engineering as the skill sets available in the country are relatively less expensive.
2.4 STATE SCENARIO
The first public sector electrical equipment industry setup in Kerala was the Metropolitan Engineering Company limited in Trivandrum in 1945. It was followed by the starting of Electrical and Allied Industries Pvt. Ltd (EAIT) at Kundara in 1946. EAIT at 1964 was taken over by Govt., which was registered as a Govt. of Kerala undertaking. At present there are five public sector electrical equipment industries working in Kerala and they are: Metropolitan Engineering Company Ltd United Electricals Ltd. Traco Cables Kerala Electrical & Allied Company Ltd. Kerala State Electronics Development Corporation Ltd. Table No: 2.1 No 1 2 3 4 5 Company Name Metropolitan Engineering Co.Ltd United Electrical Ltd Traco Cables Kerala Electrical &Allied Co.Ltd Kerala State Electronics Development Co.Ltd. Products Isolators, Fuses, Switches Meters, Motors, Capacitors Telephone cables, PVC Cables Alternators, Transformers Capacitors, Resistors, Television
3.1 COMPANY PROFILE
The Kerala Electrical & Allied Engineering Co. Ltd., popularly known as KEL was established in 1964 in the State of Kerala, India and is fully owned by the State Government. (KEL) is a multifaceted company fully owned by the State government. Through its three production facilities, located in various districts of the State, this ISO 9001: 2000 complaint company provides basic engineering services and products to many of its clients besides executing projects of national importance for high profile clients like various defense establishments. The company manufactures and markets products like general purpose brushless alternators, brushless alternators for lighting and air-conditioning of rail coaches, medium power and distribution transformers, BLDC Fan as well as structural steel fabrications The product categories for defense applications include high frequency alternators, frequency convertors, special alternators and power packs for missile projects. The power packs designed and supplied by the company for missile projects like Falcon, Prithvi, Trishul and Akash have been pioneering efforts. The company has also supplied special alternators to the Army (Military Power Cars) and Air Force (Radar Applications.) The company's all-India marketing network with regional offices in all metro cities cater to major institutional clients like the State Electricity Boards, Indian Railways and various defense establishments besides the general market clients. 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, highly competent engineering companies to mammoth institutions likes the Indian Railways. The company with three state-of-the-art manufacturing units spread across Kerala has a pan India presence with marketing offices in major metros and select cities.
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3.1.1 HISTORY
Kerala Electrical And Allied Engineering Company Limited known as KEL was started in the year 1947 with 50% of the share for government and taken over by government in 1964 as an undertaking of Government of Kerala engaged in the manufacture of electrical engineering goods. Another unit was set up at Mamala (Ernakulum District) as part of KELs expansion programmers which became operational in 1968. KEL was also entrusted with the charge of Enclose, a sick unit in Palakkad that was taken over by the government of Kerala in1977, which was developed as their 3rd unit. In 1986, a High-tech mechanized foundry at Kundara was added to KEL group of production units. In 1990 a new unit established in Bedradka (Kasargod District), Kerala with latest technology and modern equipments.
3.2 CORPORATE PROFILE

The corporate office of KEL is located at Kochi. In addition to these production centers a project division for execution of turnkey projects, an R & D wing and centralized marketing network are having Head Quarters in the Corporate Office. The organization has strength about200 qualified Managerial staff and about 1500 employees including special skilled works. The present product range of the company includes Brushless Alternators for train lighting and air conditioning, ground power unit (GPU) for aircrafts, high frequency alternators for defense application and Antarctica expedition, distribution and power transformers, HRC fuses, switchgears, brushless ac generators. The present sales turnover of the unit is about Rs. 20crores.
3.3 MANUFACTURING UNITS

Kundara unit, Kollam (dist), Inception: 1964
This is an ISO 9001 certified unit which was started in the year 1964
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imbibing technical know-how from EVR of France for the purpose of manufacturing Statodyne Brushless Alternators used for lighting and air conditioning of Railway coaches. There are three divisions in this unit namely: Statodyne Alternator Division: Statodyne Alternator Division manufactures Statodyne Brushless
Alternators used for lighting and air conditioning of Railway coaches. Statodyne Alternator Division has installed capacity of 3000 numbers of alternators per annum. More than 25000 alternators are in service with the Indian Railway Station alone. Foundry Division: Foundry Division has a capacity of 1500MT per annum and manufactures Spheroidal Graphite Iron and Grey Iron Castings. This unit has fully mechanized molding lines with sophisticated testing equipments to ensure quality castings. Battery charging systems division: Manufactures brushless alternators for automobile battery charging system. The product has been developed through the companys own R & D efforts. The alternator caters to the high power needs of modern vehicles and heavy earth moving equipment. It offers long life and maintenance free Operation.
Mamala Unit, Ernakulum District, Inception: 1968

The transformer Division of KEL at Mamala, Ernakulum, was established in 1968, with the technical assistance of BHEL to manufacture supreme quality transformer for various State electricity Boards, Government Departments, Public and Private Sector
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Companies. This division, ISO9001 is certified by TUV, boasts of a long sustained list of extremely satisfied clients, many of whom who have stood by KEL, for decades. Over the years relying on the unmatched quality of KEL transformers, electricity boards across India perfectly maintain a healthy power distribution supply system. The Transformer Division has production and distribution of medium range power transformers up to 1600KVA. Manufacturing custom-build transformers, for specific requirements is yet another specialty of KEL. This division undertakes design, fabrication and commissioning of hydraulic control gates and hoists for power and irrigation projects, cranes, pressure vessels and other industrial structure.
Olavakkod Unit, Palakkad District, Inception: 1977

Unit started in the year 1977 with technical know-how from UNELEC of France. This unit manufactures Isolators/Changeovers, Switch fuses, Fuse units/Cutouts, Distribution fuse boards/Panels and castings used for Industrial, Commercial and domestic applications through their LT Switchgear Division. Product Range Fuse Switches, Changeover switches, Porcelain Fuse Units. Distributions fuse Boards and industrial type switch boards, Distribution Boards.
Project Division: KEL project wing headed by the GM attached to its corporate office undertakes turnkey projects in design, fabrication, supply and erection of gates, hoists
and controlling equipments for power and irrigation projects and civil works including heavy machinery erection.
Edarikkod Unit, Malapuram District, Inception: 1988

Unit was commissioned in 1988 for the manufacture of Brushless
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Alternator for Automobiles (BAA). But as per the instruction of the government the execution of the BAA project was suspended as the government wanted to give top priority for the implementation of the Kasargod project. The capital outlay originally envisaged for BAA project was Rs.6.42crores, which was subsequently enhanced to Rs.12.75 crores due to the cost overrun which is in turn, was consequent to the delay in execution. Now this unit is used for the manufacturing of Power and
Distribution Transformers. Marketing Division: The corporate marketing Division piloted by the GM (Marketing) is controlling the various service centers and Regional Offices in New Delhi, Bombay and Madras. And sales and service centers in Kanpur, Calcutta, Bhopal, Hyderabad, Bangalore, Coimbatore and Trivandrum.
Expansion Project: While trying to consolidate its exciting units by means of technological up gradation,KEL in a head on its way with future expansion projects including brushless alternator for automobiles, Nickel, Cadmium Battery ,special purpose motor project with technical collaboration from Austria.
3.4 The various products developed by KEL R&D wing are the following:
5 kVA,400 Hz alternator for Antarctica expedition for the defense department of Govt. of India 20KW DC manual and self propelled type ground power units for Vayudoot for starting their Aircrafts. 30kVA rotary converter for radar application for helicopter starting for Indian Navy.
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3KV generator for wind mill applications. 5KV alternator for with rectifier regulator unit for battery charging in locomotive engines. 40kVA ground power unit for requirements of starting of fighter aircrafts like MIRAGE. 90 kVA ground power unit for Boeing and Air Bus aircrafts 20kVA alternator for powering mobile radar installations.
3.5 Over Seas Partnerships:

As a company in tune with modern technology, KEL have had associated with reputed overseas manufactures who are experts in their respective fields. Inductor type brushless alternator for lighting and air conditioning of rail coaches --- EVR ,France HRC fuses --- UNELEC, France General purpose brushless a.c generators --- Moteures Leroy Somer, France Nickel-Cadmium battery project --- Honda, Japan Technical collaboration with ----T-Lin of Austria
3.6 Players in India Kerala Electrical and Allied Engineering Company H.M.T.D Chennai Stone India Calcutta Crompton Greaves Ltd Chennai Steasalite Ltd Press tech India Unitec
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3.7 KEL-KUNDARA UNIT
The Kundara unit of the company was established in the year 1946 in private sector for manufacture of low tension switches and was taken over by the Govt. of Kerala in 1964.In the early 70s the unit was diversified into the field of brush less alternators for railway lighting. As a part of diversification program, new mechanical equipments and facilities were added to the unit. KEL had set up a modern iron foundry which manufactures spherical granite iron and gray iron castings of various grades at Kundara unit.
The Kundara unit of KEL has manufacturing brushless alternators which is acclaimed and accepted by the Railways as the most efficient and reliable one. More than 25000 number of alternators manufactured in KEL are already in operation with the Indian Railway alone.
3.7.1 Vision Statement of KEL

To be a globally recognized enterprise committed to enhancing stakeholder value by providing world class engineering and power system solutions.
To achieve our vision by:

Applying state-of-the-art technology, processes and innovative solutions. Building long term relationship with stakeholders in an environment of fair business ethics and values. Creating value through sustainable and profitable growth. Leveraging productivity through highly motivated & empowered team.
3.7.2 Mission Statement of KEL

Ensuring team work at all levels. Establishing and maintaining vendor evaluation and rating.
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Establishing and maintaining quality system suitable for meeting customer requirement. Continuous improvement through constant up gradation of technology, process and skilled manpower.
3.7.3 Core Values

Fairness, transparency, integrity. Trust and mutual respect. Passion for professional and operational excellence. Corporate and social responsibility.
3.7.4 Objectives
To educate and train our skilled manpower on a half yearly basis at the rate of 8 hours training per employee to upgrade the skill level and to reduce the rate of absenteeism to 3% from 5% .Which will be measured on a monthly basis.
3.7.5 Quality Policy

The Quality Policy of KEL, Kundara is to Achieve Customer Satisfaction by providing the right product and services at the right time as per Customers requirements . This shall be achieved through Ensuring team work at all levels. Establishing and maintaining suppliers evaluation and rating. Establishing and maintaining a quality system suitable for meeting customer requirement. Continual improvement through constant up gradation of technology / process and skilled manpower.
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3.8 PRODUCT PROFILE
Location : Kundara ,Kollam District Inception : 1964 Technical knowhow : EVR of France ISO 9001 certified by RWTUV Statodyne Alternator Division:
Used for : lighting & air conditioning of railway coaches Capacity : 3000 alternators per year More than 25000 alternators with Indian Railway alone.
Foundry Division:
Manufactures : Spheroidal Graphite iron & Grey Iron casting Capacity : 1500MT per annum Induction Furnace : 2x3T Fully mechanized molding lines with sophisticated testing equipment to ensure quality castings.
Fig .3.1
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3.8.1 PRODUCT RANGE
Table No: 3.1 No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Range 3KW,24V 4.5KW,24V 4.5KW,110V 12KW,110V 18KW,110V 25KW,130V 12KW 18.5 KW 2KW 50kVA 20kVA 5kVA 25KW 4.5KW Name Brushless Alternator Brushless Alternator Brushless Alternator Brushless Alternator Brushless Alternator Brushless Alternator Auxiliary Alternator Auxiliary Alternator Diesel Generator (DG)Set Diesel Generator Set Alternator Alternator Electronic Rectifier Unit Electronic Rectifier Unit BL DC Fan Purpose Train lighting (Third Class Coaches) Train lighting (Second Class Coaches) Train lighting (Second Class Coaches) 2 Tier AC Coach(Meter Gauge) 2 Tier AC Coach(Broad Gauge) Roof Mounted AC Coaches Diesel Electric Multiple Unit Coaches Diesel Electric Multiple Unit Coaches Ground Power Unit Ground Power Unit DG Set for Defense Applications DG Set for Defense Applications Train Lighting (Ordinary Coaches) Train Lighting (Ordinary Coaches) Railway Application
USP
Induction Alternator Brush less excitation without winding on the rotor. Both field and armature windings are embedded in stator slots, hence no limitation for working speed and ideal for variable speed application like ---Train, Automobile, Windmill etc
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Totally enclosed fan cooled version available for Dusty/Humid/Corrosive environments.
3.8.1 Top customers: Integral Coach Factory, Rail Coach Factory Indian Railway Tanzania Railway Corporation Rites Station Power Controls Ltd L&T CGL Paras Electricals Ltd AVISH AVIATION Equipment Pvt. Ltd Medha Servo System DIGHI , Pune Indian Defense, Air Force Bharat Heavy Electricals Ltd(BHEL) Bharat Earth Movers Ltd(BEML)
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Organizational structure
CHART NO:4.1
GM/UNIT HEAD
HOD
M P&A
M AS&S
HOD MKTG
M MKTG
HOD MMD
M MECH
M TESTING ELE
M(P)
M(P) REG
M(P) REG
APO-1
AM PLNG
AM MKTG AM D&D
FOREMAN
CH CH
AM FY STAFF CH CH
CH
M MMD SKILLED AM SUPERVISOR MMD SKILLED STAFF
CH
AM P&A
SKILLED SKILLED
SI SKILLED
USW
USW
SEC GUARD FOREMAN
GSTORE S STAFF STAFF
AAO2 STAFF USW
SKILLED
JO
PEON
STAFF
USW STAFF
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5.1 DEPARTMENT PROFILE
5.1.1 Personnel & Administration Department
5.1.2 Finance Department
5.1.3 Marketing Department
(a)After Sales Department
5.1.4 Production Department
5.1.5 Planning Department
(a) Dispatching Department
5.1.6 Materials Management Department
5.1.7 Design and Development Department
5.1.8 Quality Assurance Department
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5.1 PERSONNEL DEPARTMENT & ADMINISTRATIVE DEPARTMENT
The term personnel management has now been modified as Human Resource Management. But in KEL, they still follow the old term Personnel Management. The Personnel Management controls the personals in company. Personnel management function has a great role in productivity and quality. A human performance is the product of his/her ability and motivation, right personnel/HOD policies are important for sustaining ability and motivation in the human element. The technical functions of this department include recruitment, performance, deployment, wage agreements, discipline, performance appraisal, termination as well as activities.
There are 8 unions representing the workmen and the staff. The labor relation climate has long been peaceful and conductive to production.
5.1.1 Policy
To achieve competency of our skilled manpower through constant training, education and experience in order to product quality.
5.1.2 Objective:
To educate and train our skilled manpower on a half yearly basis at the rate of 8 hours training per employees to upgrade the skill level and to reduce the rate of absenteeism to 3% from 5% which will be measured on a monthly basis.
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Department Structure
General Manager
Manager
Asst .Personnel
Staff
Chart No: 5.1.1
5.1.3 Duties of a Personnel Manager

Manpower planning. Recruitment. Selection. Placement Procedures. Training and development. Performance appraisal. Transfer and Promotion. Employee Welfare Administration. Disciplinary action. Wages and Salary Administration.
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Leave Administration. Trade Unions Time Office Administration. Security Office Administration. Public Relations. General Estate Keeping. House Keeping Activities. Typing Section.
MAN POWER PLANNING

Manpower planning is one of the important functions of personal and administrative management. It means corrective utilization of man power. They undertake the task of creating human capacities which ensures that fully contributes to the total organizational performance. They also have the responsibility for the determination of manpower recruitment of the organization both in the right number and of the right kind.
RECRUITMENT
Mainly three types of recruitment are following in KEL. They are:
1. Direct Recruitment:
On the basis of rules and regulations prevailing in the company, the management can recruit the technical hands such as unskilled workers and semiskilled workers. They are appointed as apprentice trainee. They are recruited through employment exchanges. Sometimes security guards are also appointed through direct recruitment.
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2. Internal Recruitment:
In certain cases, company conducts an internal notification for higher posts. The qualifications, experience, additional qualifications etcrequired must be clearly specified in the notification. The internal recruitment is through promotion, only after considering the merits and performance of the employees.
3. External Recruitment:
In this type, recruitment is done through Kerala Public Service Commission (KPSC).On the vacancies intimated by the management, KPSC advertises through the media calling appropriate candidates. The test/ interview is conducted by the KPSC and post them into the company.
SELECTION
Selection is mainly for the ex service men that is by an agency through application, scrutiny test. The persons selected are based on interview for the placement of job.
GRIEVANCE HANDLING
Grievance is also handled by personal and administrative department. They collect the grievance of the employees and informed to the top level managers and solved their problems. There is a suggestion box inside the organization for the grievance of the employees.
LEAVE STRUCTURE.
Casual Leaves 14 days Sick leaves 14 days. (For more than three consecutive days sick leave,a medical certificate should be produced.) Privilege leave -30 days
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TRAINING & DEVELOPMENT

It is the effective tool for employees development. Three types of training are adopted in KEL.
1. Induction Training:
The fresh employees and the transferred employees from other units must undergo this training. A training schedule is prepared by the personnel department and directs the employees to the various sections or departments for the training.
2. External Training This is given to the permanent employees such as Engineers, Officers and other Executives conducted by External agencies or External organizations. 3. Internal Training
This type of training is given to technical persons working in various division/Sections. Apprentice training also given as a part of internal training. Work rotation is another technique for internal training. Management gives training for a period of one year for the fresh employees. After the successful completion of training he is recruited on probation and after he is appointed in regular service. This training is compulsory for the company.
DISCIPLINARY ACTION
The personal and administrative department is responsible for disciplinary action against violation of rules and regulations which are mentioned in the standing order. Some Cases are Willful in subordination.
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Disobedience. Fraud. Theft Dishonesty Illegal Absence. Sexual harassment
PROCESS
1. Case reporting to the GM. 2. Issue show case memo. 3. Warning or enquiry. 4. Inform to head office. 5. Approval for enquiry and posting of inquiry officers. 6. Meeting management witness and employee witness.
PUNISHMENT ACTIONS
Suspension Increment Banning. Dismissal.
TRADE UNION AND LABOUR RELATIONS

Electrical and Allied Workers Union (U.T.U.C). Electrical and Allied Industries Employee Union (I.N.T.U.C). KEL Employees Organization (S.T.U). KEL Employees Union (C.I.T.U).
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WELFARE MEASURES
Loan Facility Canteen Recreation Club Education Benefit Death Assistance Funeral Assistance Retirement Assistance Marriage Contribution Provident Fund ESI Accident Benefits Maternity Leave Drinking Water Latrine & Bathroom
ALLOWANCES
Washing allowances Night Shift allowances Milk allowances Food allowances Uniform allowances
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Insurance allowances Risk allowances Heat treatment allowance Cycle allowance
WAGES & SALARY ADMINISTRATION Wages:

Wages depends on the long term agreements exist for duration of four years. Wages are fixed after bilateral discussion with labor unions and management. These wages are enacted only after the approval from the management. There is no profit sharing, but they get indirect benefits out of realized profits.
Salary:
Salary = Basic Pay + DA + HRA + Allowance DA is based on the cost of living index at Kollam district. Department of Economics and Statistics fix the index. Government fixes the DA for officers. Allowances include washing allowance, risk allowance, heat treatment allowance and night shift allowance etc.In fact there are 7 unions exist in KEL. But of these 7 unions only 4 unions are affiliated unions.
KEL has got 4 affiliated unions:

Electrical & Allied workers Union (UTUC). Electrical & Allied Industries employee Union (INTUC). KEL employees organization (STU). KEL employees union (CITU).
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TIME OFFICE ADMINISTRATION

Biometric punching system is being followed for all employees. Attendance bonus is used for motivating employees. The scheme provides with 12days bonus salary for employees with full attendance. There are three shifts and a general shift
Table no.5.1.1
First Shift Second Shift Third Shift General Shift 12:00am to 8:00am 8:00am to 4:00pm 4:00pm to 12:00am 8:00am to 4:30pm
TRANSFER & PROMOTION

TRANSFER
At the time of appointment every employee is given a declaration to the management regarding, they are willing to work in all over India where ever the company has units and regional offices. As par the manpower requirements, transfer the employees to different units. In case when employee request to transfer as per his convenience, if the management found the reason is relevant they gives consent. But the employee is posted as the junior most employee of that unit in the same category.
PROMOTION
It is based on the promotion policy agreement; its strictly based on the seniority of service. If there is vacancy in higher post, then promote to the higher post otherwise give the higher grade scale.
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5.2 FINANCE DEPARTMENT
Finance department is headed by the Head of the Department (finance) .The main responsibility of Head of the Department is to take financial decisions, which includes investment decisions, financing decisions and dividend decisions. The manager has to keep constant touch with the entire department and also keep all the record of the transaction. At the end of every year he is responsible for making the financial statements.
Financial statements are prepared for the purpose of presenting a periodical review of report on progress by the management and deal with the status of investment in the business and result achieved during the uses of funds. Financial statements reflect a combination of recorded facts, accounting principles and personal judgment. In order to understand the financial performance of the company is necessary to analyses the Balance sheet, Profit and Loss account.
To maintain all books of accounts up-to-date as per the statutory requirements and manage working capital, preparation of budget ensuring discipline in the case of financial resources preparation and analysis of the book of account. The main books of account maintained in KEL are cash book, bank book, purchase register, journal records, pay roll statements and Central excise record. The software used is Tally 9.0
5.2.1 FUNCTIONS To ensure maximum effective operation and healthy relation with customers, workers and financiers etc. To maintain all books of account up to date as per the statutory requirement.
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To manage working capital. Preparation of budget ensuring discipline in the case of financial resource
Department Structure
General Manager
Asst.manager (HOD)
Asst. Accounts Officer 2
Jr. Officer
Staff
Chart No: 5.2.1
5.2.2 Objectives:
To ensure maximum efficiency of operation and healthy relations with suppliers, Workers, financiers etc.
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To maintain all books of accounts up to date as per the statutory requirements. To manage working capital Preparation of budget ensuring discipline in case of financial resources. Preparation and analysis of books of accounts.
In KEL Financial statements are audited internally and externally. The internal audit is done by corporate office while the external audit is done by government officials. Also includes financial forecasting and planning, acquisition, safe keeping of securities and other valuable documents like insurance policies etc.
The main responsibility of the financial department is to make. Investment decisions. Financing decisions. Dividend decisions.
5.2.3 The main account books maintained in KEL are:
Cash Book. Bank Book. Purchase Register. Sales Register. Journal Register. Central Excise Register. VAT Records.
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The software used in accounting purpose is Tally 9.0
5.2.4 Significant Accounting Policies

1. Accounting Convention
The financial statement is prepared under historical cost convention on accrual basis and in compliance with Companies ACT 1956.
2. Fixed Assets
Fixed assets are stated at cost less depreciation. Assets and liabilities are recorded with higher cost.
3. Depreciation
Depreciation of fixed assets has been provided as per rates indicated in line X1V of Companies ACT 1956 under written down value method.
4. Inventories
Finished goods are valued at cost on market price whichever is less. Excise duty is also taken into consideration Scraps are valued at net realization value Goods in transit are valued at cost.
5. Sales
Sales comprises of sales of goods and services including excise duty. Price variation claims on sales effective are accounted for on accrual basis.
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6. Consumption
Loose tools issued to shop floor are stated as consumed and return off as scrap. Consumption of materials for production is computed on derived basis.
7. Liability on material on transit

The liability on account of bank charges and other expenses on material in transit on the date of closing is accounted on approval basis.
8. Research and Development

Capital expenditure on R&D is treated as an addition to fixed assets and revenue expenditure on R&D is charged to P&L account under appropriate heads in the year in which it is incurred.
9. Contingent Liability
Contingent Liability are not provided for, but disclosed in notes on accounts.
5.2.5 Source of Fund:

Main source of fund are from Government and from banks, Mainly 5 banks that offer funds to KEL. They are: State Bank of India State Bank of Travancore State Cooperative Bank Federal Bank State Bank of Mysore
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5.3 MARKETING DEPARTMENT

The main function of the marketing department in KEL is to establish and maintain a quality system suitable for organizations vision, commitments towards products and services rendered to the customers. The KELs main product is 4.5 KW and 25 KW alternators. The main customers of KEL are Indian Railways, L&T, BHEL (Bharath Heavy Electrical Limited), BEML (Bharath Earth Movers Limited) and Defense (Prithvi and Trishul Missiles). But always main user is Indian Railways. As the target consumer is Indian Railway, KELs marketing department has no need for marketing the product. So there are no markets research and analysis activities done by marketing department.
KEL participate in open tender as and when railways invite tenders. KELs service centers are located in all the metropolitan cities. These offices give all support services to sale and marketing lean guarantee complete customer satisfaction. As the number of customers is limited, there is having short channel of distribution.
5.3.1 Policy
To provide customer satisfaction and confidence to the customers that quality is being maintained and will be continuously sustained in the delivered product by providing the right product at the right time.
5.3.2 Objective:
To meet customer needs both stated and implied in order to maximize the order realization by 10% within one year. To reduce sundry debtors by maximizing the collection.
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Increasing the sales by minimum 10% by supplying the items in time.
5.3.3 Scope
The procedure covers all tenders enquiries, submission of tenders, acceptance and amendments of orders execution, invoicing and collection of payment.
Departmental structure:
General Manager
Asst .Manager
Foreman
Staff
Chart No: 5.3.1
(a) Marketing Department Functions:

Liaison with customer for receipt of tender enquiries. Purchase of tender documents. Evaluation and review both technical and commercial. Pricing of the product, Preparation of order, Submission of tender. Tender opening, Negotiation, Follow up of order.
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Receipt of order review and acceptance. Order register Amendments from customers. Issue of sale order and follow up, Road permits. Arranging of inspection. Preparation of delivery Chelan. Invoicing Collection of payments. Management information and records keeping.
RECEIVING THE TENDER: Railway as they only customers of the KEL they have annual requirement. For that they invite individual tenders. They evaluate the offer on the basis of the past performance .Capacity, Technology, etc and award the tender to the best bidder. It is the duty of the marketing department to receive the tender. EXECUTION: Intimation goes to the production and other concerned department from marketing department. Planning department plan the production actives .Material department purchase the raw materials, store these material and issue item. It is the duty of the material department to produce item accordingly to the order and in time. When the production is over, production department will inform the marketing department. ARRANGE INSPECTION: Marketing department arranges the inspection. They invite the inspection authority .Railway have their owe inspection authority. These authority are RDSO and RITES they come to KEL and test the product accordingly to there specification
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DISPATCH TO THE RESPECT CONSIGEES If the inspection agency is satisfied with the quality of the product then it dispatch to the respected customer. INVOICES PREPRATION: Invoice IS prepared by the marketing department. Invoices contain number of finished goods to sent, rate, total price etc. SENT TO PAYMENNT AUTHORTY Marketing department will sent those invoices to the paying authority of the Railways. Railway has a paying authority called FANCO.
COLLECTION OF PAYMENT Marketing department collect the payment from the payment authority of the Railway. Collection of payment is handed over to the finance department.
(b) Marketing strategies followed by KEL

Strict quality control Prompt supplier Trained sales personnel Credit facility Reasonable price Penetrating new markets Appropriate advertisement.
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Pricing strategies Pricing strategies that are used in KEL are Cost plus pricing Comparative pricing Pricing is also influenced by last tender that accepted by the Indian Railway.
(c) List of registers used in Marketing Dept:

Tender Register Sales Order Register Payment Register
(d) Market Share Analysis:
Table No: 5.3.1

COMPANY
KEL HMTD, CHENNAI STONE INDIA, CALCUTTA PRESS TECH INDIA STEASALITE LTD UNILEC CROMPTON GREAVES LTD, CHENNAI
MARKET SHARE
26% 8% 28% 8% 28% 0% 2%
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Market share Analysis
Market share
0% 2% KEL 26% HMTD,CHENNAI STONE INDIA,CALCUTTA 8% 8% 28% PRESS TECH INDIA STEASALITE
28%
Chart No: 5.3.1

Competitors
BHEL HMTD Chennai Stone India Ltd Press Tech India IC Electricals Crompton Greaves Ltd, Chennai P D Steels KAPSON UNILEC
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(a) After sales department
Policy
To provide customer satisfaction and confidence to the customers that quality is being maintained and will be continuously sustained in the delivered products by providing the right product at the right time.
Objective
To improve upon customer satisfaction by reducing customer complaints, other than product complaints by 50% within 6 months. To meet customers need both started and implied in-order to maximize the order realization by 10% within one year. To increase customer satisfaction by 10% of the existing index by avoiding delay in providing on-time services by 10% within one year.
After sales and service department actives

Mainly two actives 1. Preventive action a. Periodic action b. Intimation of design changes c. Training to customers
2. Servicing a. Customer complaints b. Warranty service & training c. Maintaining tools , instrument and spares d. Maintain calibration
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5.4 PRODUCTION DEPARTMENT
The main function of the production department is the creation of a product or service required satisfying customer needed wants and desire. Main problem that KEL Kundara faces is that the freight charge of raw materials is high. KEL mainly purchases raw materials from France, Germany and from some other states in India. This will lead to the increase in the cost of production and also there will be an increase in the selling price.
Structure of Production Department
General Manager
Work Manager
Manager 3
Asst Manager
Forman
Worker
Chart No: 5.4.1
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5.4.1 Policy
Right product at right time will result the customer satisfaction through team work.
5.4.2 Objective
Right product : reducing the rework/rejection. In house failures reducing rework /failures by 25% at the following stage. a) Shaft ground b) End shield / turned/drilled c) High voltage test/ wound frames d) Testing of alternator with rectifier regulator unit Right time : achieving better on-time delivery by interesting the number of satisfied customers by 85% within the next three months and 90% within one year Team work : improving employee involvement and team work through generation of two suggestions as per quarter and implementing a minimum of two improvement projects per year.
5.4.3 Product Features:

The system consists of brushless induction type alternators and a completely static regulator rectifier unit. The alternator is completely devised of any type of moving cost on sliding contacts and this ensure a trouble free operation without periodically any maintenance. The regulator rectifier unit makes use of silicon diodes, transformers and magnetic amplifier. All the components used in the rectifier regulator units are unlike transistors and the thyristorstailor made to the requirements of the hazardous application to which they are put into rolling stock. As such the reliability of the KEL generating system is high.
5.4.4 Production Process

1. Ensure availability of material and allocate the work.
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2. Receipt of materials /tools. 3. Projecting requirement of measuring and testing equipments. 4. Production process. 5. Return of items to store due to non conformity during production process. 6. Review of N.C items found during process. 7. Offering for inspections. 8. Issue of F.G.T.N (Finished Goods Transfer Note) 9. Return of excess material. 10. Production monitoring. 11. Breakdown intimation.
5.4.5 Equipments used in Production:

Lathes Vertical turret lathes Milling machines Hydraulic press Drilling machine Slotting machine Shapers Bending machine Welding machine
5.4.6 Different Sections of Production Department: Fabrication shop Old machine shop New machine shop
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Winding & assembling section Foundry Process Flow
FABRICATION
OLD MACHINE SHOP
FOUNDRY UNIT
NEW MACHINE SHOP REGULATOR SECTION ASSEMBLY & WINDING UNIT
TESTING
PAINTING SHOP
FINISHED GOODS
Chart No: 5.4.2

Process flow Alternator
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5.4.7 Production Process:

Production of alternators comprises of two main stages:
Component Manufacturing:
70% of the components used in the alternators are made in the house. These can be classified into the following groups.
Pressing and rolled parts Turned parts Tapped and drilled parts Welded parts
Supplementary activities are as given below. Painting Tool room Electrical and Mechanical maintenance
The main activities of these sections are explained below.
Press Shop:
Infrastructure available includes hydraulic pressure mechanical presses, rolling machines, shearing machine and press brake. But many of the presses and shearing machine are old and need progressive replacement. Automatic press protection systems need to be installed to prevent accidents. The workers are all qualified ITI holders in this section.
Machine Shop:
The main works that take place in this section are boring, drilling, facing, centering, turning, milling, grinding and balancing. Two machine shops are there,
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they are Old Machine Shop and New Machine Shop. Central lathes, Capstain Lathes, Radial drilling machines, milling machines, grinding machines are being used. The operators are all qualified ITI holders.
Fabrication Shop:
The stator frames, the regulator boxes and the terminal boxes are being fabricated here. Welding machines are used in this section. Grinding work is also done here.
Painting:
The regulator boxes and the terminal boxes are zinc plated after pretreatment. The stator and pulleys are painted with enamels after surface treatment. The process is manual and conventional. For better consistency, semi/fully automated painting system could be established.
Tool Room:
The tool room functions solely on the skill of the die makers. The tools are made using conventional methods of hand-marking and filing. Modernization has been kept abeyance due to scarcity of finance. Making of new tools for replacing worn out ones takes long time due to the conventional techniques of tool making. Accuracy also varies from person to person. Hence modernization of tool room is to be speeded up.
Assembly, Testing and Finishing:

The alternator section comprising assembly, testing and finishing is headed by the Asst.Manager. The assembly, testing and finishing section are given below:
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Assembly:
Assembly mainly involves the following operations, 1. Assembly of rotor and stator 2. Fixing bearing and end shields3. Fixing alternator pulleys. Assembly operations are carried out manually. Since there is no pneumatic puller, the dismantling operations are not so easy.
Testing:
There are 3 test beds. There s provision for mounting the alternators near the drive and subjected to all the routine tests as per the RDSO specifications. Internal inspection is done for all the machines (100%). The RITES and RDSO inspectors conduct type test and their inspection, the inspection affix seal on each tested alternator. The test beds needs modernization. The computer aided testing is to be provided so as the increase the output and consistency. More over automatic error printout from the computer eliminates the manual recording of test data as well. The huge cost cannot be afforded during the present stage of the company.
Finishing:
Finishing work on alternators comprises general checking, tightening the T.B screws, cover fixing, sealing and packing in wooden cases. Pneumatic screw drivers are better for consistent tightening of screws.
Finishing is the last stage in the manufacturing cycle, before physical dispatch to the customer, the worker in this section should have a better orientation towards quality and customer satisfaction.
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Other important sections of Production Department:
o Regulator Section:
Functions are: AC to DC conversion (Rectification) To Charge Battery.
o Foundry Unit:
Foundry or casting is the process of producing metal/alloy components parts of desired shape by pouring the molten metal/alloy into a prepared mould and then allowing the metal/alloy to cool & solidify. The solidified piece of metal/alloy is known as casting. The Foundry unit in KEL was established in the year 1985. Silica sand is brought to KEL from Cherthala for the processing of silica sand is 1500 degree Celsius where Ordinary sand requires only 1000 Degree Celsius to melt. The silica sand is dried and then only will used for processing.
o Furnace:
The total capacity of the furnace is 31/2 ton. The main advantage is that we can prepare any grade metal. This furnace is worked under induction principle. The voltage required for the furnace is from 350volt to 1500volt.
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5.5 PLANNING DEPARTMENT

Planning is one of the important functions of the management. The main functions of the planning department is to plan and schedule for the production and dispatch. This department includes both planning and dispatch sectors. The objective of the planning department is to co-ordinate the manufacturing operations in line with the marketing plan so as to achieve the production target in time.
Structure of Planning Department
General Manager
Asst Manager
Foreman GRI
Chart No: 5.5.1

Staff
5.5.1 Policy
To establish and maintain a documented procedure for planning the production availability of materials and schedule of dispatches for enabling the organization to provide the right product and services at the right time every time as per the customer requirements.
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5.5.2 Objectives
To minimize the difference between planned and achieved production. Monthly plan and monthly production schedule for the next month will be issued on the last working day of every month.
5.5.3 Functions
Get information from marketing department about the orders received. The information contains all details about the customer quality and quantity. Analysis of orders and decide about when to start and how to start. Information is then passed to production department. Check whether materials are available in the store department if not then the information is passed on to the materials department to purchase the materials.
5.5.4 Planning Process /Activity

1. Yearly Planning 2. Quarterly Planning 3. Monthly Planning 4. Preparation of work order. 5. Issuing of work order. 6. Raising Purchase Return. 7. Monitoring Production. 8. Analysis of production short fall.
9. Maintenance of records.
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PROCESS FLOW CHART OF PLANNING DEPARTMENT

START
Monthly plan
Monthly Production Schedule
Preparation of work orders issue to various department Raising Purchase Requisition for A value items
Monitoring of Production & Analysis of Short Fall
Request for Delivery Period Extension to Marketing Department
Short fall if any?
YES NO
Dispatch as per Schedule
CHART NO: 5.5.2

END
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1. (a). Dispatching Department

In KEL dispatching activities are controlled by the planning department itself.
Objective
Eliminate wrong dispatches and reduce transit damages to 50% within one year.
Policy
Delivery of products in the right time.
Process/Activity
Checking of finished goods and storing (FG Store). Checking and preservation (FG Store). Packing of finished goods (F.G.C.F.G.) Intimation for preparation of D.C and excise gate passes. Delivery of finished goods as per D.C Collection of acknowledge D.C from consignee. KEL has tie up with a number of transporters for their dispatching and transporting activities. About 30 companies are constantly interacting with the firm. Some of them are: M/S Kerala Transport Co. Mukkada. Kundara M/s Suraj Goods Transport Service. Kollam M/s Carvan Goods Carriers Pvt ltd .kundara
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Flow Chart of Finished Goods Store
START
Checking Preserving & Storing of Finished Goods
Packing Instructions
Packing of FG as per DC
Delivery of FG as per DC
Collecting of Acknowledgement, Copy of DC from Consigners
STOP
Chart No: 5.5.3
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5.6 MATERIALS MANAGEMENT DEPARTMENT

This department deals with the purchasing of raw materials for the production. The main functions are Purchasing. Storage. Inventory control. Standardization. Supplier Rating. General Store.
Material Management means managing materials in an organization with the main objective of reducing the cost and efficient handling of materials at all stages and sections in an undertaking. This department deals with material costs, supply utilization and handling.
5.6.1 Policy
To establish and maintain the process for development for procurement of right material and service at right time, from approved suppliers as our requirement and those of our customers.
5.6.2 Objective
Procurement of required quality and the quantity of materials at the best price. Maintaining continuity of supply to ensure production schedule at the minimum investment. Avoiding of duplication of materials leading to waste of materials and equipments.
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Creation of goodwill for the company through dealings with suppliers. To achieve 100% on time delivery by suppliers
To develop alternative sources to the maximum extent possible.
Structure of Materials Department
General Manager
Manager HOD
Manager
Asst .Manager
Engineer
Staff
Chart No: 5..6.1

5.6.3 Functions
Procurement of requires quality and quantity of materials at the best price for production as per design.
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Maintaining continuity of supply to ensure production schedule at minimum investment i.e. inventory handling. Avoidance of duplication of materials leading to wastage of materials and equipments. Creation of goodwill for the company through dealing with the suppliers, ABC analysis is used in inventory handling of materials.
5.6.4 Sub Divisions of Materials Management Department 1. General Store 2. Purchasing. 3. Supplier Rating.
1. General Store Objectives To establish and maintain a quality system procedure for receiving, storing and issuing of materials. Scope
This covers all materials used in production, installation and servicing of plant and machinery.
Quality System Procedure

1. Receipt of material. 2. Quality verification. 3. Preparation of GRNS. 4. Offering for inspection.
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5. Inspection status. 6. Rejection Intimation. 7. Segregation. 8. Issue of materials. 9. Issue of materials to sub contractors. 10. Stock Intimation.
2. Purchasing Objective
To establish and maintain a quality procedure for purchase of goods and services to ensure that all materials and services obtained from outside sources fully meet our requirements and those of our customers.
Scope This covers all materials and services used in production, installation and developments of technology and servicing of plant and machinery. Quality System Procedure
1. Vetting of Purchase Return. 2. Registration of sub-suppliers, new suppliers. 3. Floating of enquiry. 4. Emergency purchase. 5. Comparison of quotation. 6. Purchase order preparation. 7. Placement of purchase orders. 8. Purchase order amendment. 9. Follow up of purchase order.
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10. Sub-contracting jobs. 11. Advice in discrepancies. 12. Rejection intimation. 13. Rejection Return. 14. Acceptance with deviation. 15. Issue under positive recall. 16. Retention of quality records. 17. Settlement of payment.
3. Supplier Rating Objective

To establish and maintain a system for supplier rating, ensure consistency and reliability in quality and delivery of products.
Scope
All suppliers supplying items that goes directly or indirectly into the final product.
Quality System Procedure

1. Supplier Evaluation 2. Supplier Rating. 3. Final suppliers assessment. 4. Supplier Re-assessment.
Supplier evaluation process

Considerations Past experience in the related field. Reputation of the supplier.
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Experience with associated units. Supplier capacity assessment and supplier evaluation.
Supplier rating
Weightages Quality rating - 60 points Delivery rating - 15 points Service rating - 20 points Organization rating - 5 points
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5.7 DESIGN AND DEVELOPMENT DEPARTMENT

5.7.1 Policy
To establish and maintaining a documented procedure for designing the right product in the right time. This is achieved through continual improvement through constant technology up gradation and team work at all levels so that customer satisfaction can be achieved.
5.7.2 Objective
To design the alternators and its accessories as per design, plant on receipt of the approved drawings or customer supplied drawings or customers supplied drawings within the delivery period with zero design errors. So that field failures are eliminated.
Departmental structure:
General Manager
HOD
Asst .Manager
Staff
Chart No: 5.7.1
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5.7.3 Process for developing new product
1. Tender enquiry from marketing department. 2. Feasibility study. 3. Order and specification 4. Design Plan. 5. Design input collection. 6. Review of design input. 7. Design output preparation. 8. Review of design output. 9. Verification. 10. Issue of design report. 11. Prototyping. 12. Verification. 13. Validation of design. 14. Revalidation. 15. Design change control.
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FLOW CHART OF DESIGN AND DEVELOPMENT
Start
Tender Enquiry from Marketing Department Feasibility Study
Order & Specification
YES
Review
NO
Customer Feedback
Design plan
Collection & Review of Design Inputs Verification
Preparation of Design output such as drawings TDS, BOM etc. . . Review of design
Planning
Materials
Production
Quality Assurance Verification
Prototype manufacturing
Validation Design Freezing
Chart No: 5.7.2

END
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5.7.4 The design and development department activities are
1. Collection of input. 2. Design Calculation 3. Design review 4. Preparation of drawings 5. Preparation of Material list. 6. Preparation of materials specification. 7. Preparation of acceptance criteria. 8. Design review. (Output). 9. Modification of review. 10. Issue of drawings, Technical Data Sheet, material list. 11. Prototype manufacturing. 12. Preparation of Quality Assurance Plan and Validation Plan. 13. Validation & Review of validation design. 14. Modification if required. 15. Offering of prototype for customer inspection.
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5.8 QUALITY ASSURANCE DEPARTMENT
DEPARTMENT STRUCTURE
General Manager
Manager 2
Staff
Chart No: 5.8.1
5.8.1 Policy
Quality policy of Quality Assurance Department is to ensure the quality of materials/components to the concerned areas for further processing.
5.8.2 Objectives
Materials offered along with Goods Received Notes s will be inspected within ten days from the date of receipt of goods Received Note. Reducing the defective material retuning from production to 50% within One year.
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5.8.3 QAD Functions:

Incoming material inspection and analyze each and every inputs received. In process inspection Final inspection Quality System Procedure for Control of Inspection/Measure/ Test Equipment QSP for Calibration of Jigs /Fixtures/ Gauges/ Templates Decide on error declarations period
Quality testing is done at QAD (Quality Assurance Department). Quality testing is done at 3stages. They are:
(a) Incoming Material Inspection:

The test conducted in the QAD and they verify every incoming raw material against there levant ISO specification. When the material fails to the criteria, the whole lot of batch is rejected, however when it require the materials urgently department will reject only the fault item. The activities include: Acknowledgement Receipt of Goods received notes. Verify GRN with drawing/P.O Inspection of material and Record Data Indicate status Record non-conformity(QAD) Return Goods received notes to the store
(b) In processing Materials Inspection:

In process inspection which is sometimes called stage inspection, aims at detecting Nonconformity at the earlier stage of processing to avoid wasteful effort
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on output that is going to be rejected. If the Non-conformity is detected at an early stage, it may be possible to rectify the Non-confirming product and make adjustment in the process, thus preventing further production of Non-confirming products. In process Inspection assures the persons responsibility for next stage of manufacturing process that they are receiving correct input materials. This test is conducted by the QAD during the production. The production department offers the materials at various hold points for verification. Then QAD checks the products and maintains record of conformity. The activities include: Offering materials from production Indicating inspection and test status Maintain record of non-conformity Analysis of defective materials returned from production.
(c) Final test:

A final test for the reliability is carried out by KEL, on all alternators and regulatorsas per specification given by RITS and Indian standard alternators will perform. Its intendedfunction verified for a specified period under certain experimental conditions. Test status for using suitable identification system identifies the product by making tag, stamping etc. no product shall be dispatched until activities specified in quality plan or documented procedure been completed. has
5.8.4 Quality Manual

The quality management system established maintains and documented in the
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quality manual. It is developed as a policy manual to describe the quality management system followed in the organization. The quality manual includes:
Quality policy Objectives Organization structure Responsibilities Authorities Scope Reference to procedures and process maps. Sequence and interaction of the processes. Policy of the company regarding each process or activity.
The quality manual is received and approved by the General Manager for correctness and suitability to the organizational requirements.
5.8.5 QUALITY SYSTEM PROCEDURE FOR CONTROL OF DOCUMENT Objective

To make available required documents at all centers of operations related to quality systems, to follow and demonstrate conformity to the specified requirements incorporating the latest revision.
Scope
All documents such as quality system manual, quality system procedures, quality plan and quality assurance plan, acceptance criteria drawing, specification, work instructions format, charts, material list and master list of document.
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5.8.6 QUALITY SYSTEM PROCEDURE FOR CORRECTIVE ACTION
Objective
To establish and maintain a documented procedure for implementing corrective action to eliminate the causes of existing non-conformities at all levels of quality system, to prevent the recurrence of non-conformities.
Scope
All functional areas of organization wherever quality system is implemented.
Overall Responsibility
Committee for continual improvement
5.8.7QUALITY SYSTEM PROCEDURE FOR PREVENTIVE ACTION Objective

To establish and maintain a documented procedure for implementing preventive action to eliminate the causes of potential non-conformities at all levels of quality system to prevent the occurrence of non-conformities.
Scope
All functional areas of organization wherever quality system is implemented.
Overall Responsibility
Committee for continual improvement
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SWOT ANALYSIS
SWOT analysis is the process of analyzing the various strengths, weaknesses, opportunities and threats of an organization or firm. This analysis is useful to make awareness of the organizations strength that is where the resources are useful to the firm to the maximum for the firm. The analyzing of the weaknesses of the firm helps the firm to analyze the firm to identify the areas where they have to improve. Opportunities analyzing will help the firm to analyze the areas where the firm can propitiate their business or make a boom to their product market. The threat analysis will be useful to the firm as they can be careful in those threat areas. Thus the SWOT analysis is a useful strategic tool for analyzing the business.
Chart No.6.1
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1. Strengths
Good brand image. Good customer relation. ISO 9001:2000 certification. After sales services at various metro cities. Wide marketing network. Efficient personnel administration that bridges the employer employee relation unconditionally. Intensive training and development program for the employer and employees that helps them to adopt to the changes in the technology and environment.
Fully equipped to manufacture the alternators from the initial stage of the
raw materials without depending on the external sources.
2. Weaknesses
No ERP system. Lack of computerization and information technology application. Paper works for the internal correspondence is higher. The premises or structure of the firm is not worth to give a first impression that has to be the best for an outsider. Lack of transportation facility. Lack of sufficient and Effective Sales Promotion Activities. Being a public sector company, lot of Political influence may affect the smooth running of Organization.
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Raw materials are not freely available. Still using the old machinery.
Lack of Multi skilled Labors.
3. Opportunities
Globalization. Can develop more potential market. Largest Public Sector Company. Development of Railways. Increasing overseas market.
4. Threats
High competition from the competitors. Increasing price of raw materials. Depends only on major customer.(Indian Railways)
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PORTERS FIVE FORCE ANALYSIS
The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studie s have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firm can use this model to better understand the industry context in which the firm operates.
According to Michel porter the nature and degree of competition in an industry depends on the 5 forces. The points of force are represented as follows:-
Diagram of Porter's 5 Forces
Chart No.6.2
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1. Rivalry among current competitor increased because of

Aggressive sales promotion and the advertisement. Cheap credit facility. Cash discount and Trade Discount. Relative Price. Modernization. Players have similar strategies. Products are not much differentiated. Low market growth rate. Exit barriers are high.
2. Threat of substitutes
Diesel generation. Arrival of electric trains.
The threat of substitutes is low by the factors like
Brand loyalty of customers.

Close customer relationship. Switching cost for customers. The relative price or performance of substitutes. Current trends.
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3. Bargaining power of suppliers

Availability of substitutes. Large no of buyers. The suppliers are fragment so this bargaining power is high. The switching costs from one supplier to another are high. Possible to suppliers integrating forward.
4. Bargaining power of buyer

Price sensitive customers. High competition. Quality Assurance. Customers bargaining power are high under the following circumstance. Concentration of buyer Undifferentiated product
Railways are the main buyer of the company. KEL exports its product. Therefore the company is having local customers and international customers.
5. Threat of new entrance

H.M.T.D Chennai Stone India Calcutta
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Crompton Greaves ltd Chennai Steasalite ltd Press tech India Unitee
The threat of new entrance to the KEL is low due to,
Insufficient capital requirement for the new venture.

The cost incurred for the product in its various stages may affect the entrance. Economic of scale. Product differentiat
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FINDINGS
The major findings of the study are:1. The major customer of KEL Kundara is Indian Railways. 2. An outstanding product of the division is the Statodyne brushless alternators. 3. The company has a good brand image. 4. Their products are marketed through an All India Network. 5. Marketing and after sales services offices are situated in all the metro cities. 6. The communication channel in KEL is very good. 7. No advertisement activities are performed. 8. Workers are recruited through employment exchange, Kerala PSC and direct recruitment. 9. KEL follows three shifts systems. 10. It is an ISO 9001:2000 company. 11. Kundara unit is on the path of Modernization 12. KEL implements good number of welfare measures to the employees. 13. Emphasizing to Product quality than profit. 14. KEL follows time rate system of wages. 15. Good Employee-Employer relation is maintained in the Organization.
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SUGGESTIONS
1. Strict internal auditing along with creative suggestions and close monitory system . can make continual improvement. 2. Online marketing will help the company to increase their sales. 3. In the era of electric trains, company has to diversify its product range in order to exist in the market. 4. Introduction of new concept would help the company to reduce the Production and Maintenance cost. 5. Company should introduce modern management tools in the administration and strategy formulation. 6. Company should revise the strategies by considering the long term market and Economic conditions 7. Infra structure to be efficiently maintained and also properly arranged for convenient working of the employees. 8. The management should conduct meeting with workers weekly or fortnightly to know about the satisfaction with their working surroundings. 9. Multi skilled employees should be introduced to the organization for the effective functioning.
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CONCLUSION
KEL was established in 1947 in Kerala and is fully owned by state govt. of Kerala. It is an ISO 9001:2000 certified company. It has been the major supplier of Brush less alternators for the Indian Railways. It one of the biggest public sector companies in Kerala. The organizational study in KEL, gave a brief idea about all functional areas of management. Eight departments are functioning in KEL.All the departments are working together for achieving their objective.KEL is one of the major public sector company in the state. Major customer of KEL is Indian Railway. It is an ISO certified company.KEL adopt modern technology for production and their products are marketed throughout all India network. Its workforce includes 1250 persons which include 250 qualified and well-trained professional engineers; KEL is one of the biggest public sector companies in the State of Kerala with three branches all over the state. KEL came into the field of the Alternator production by 1970s .The company is tuned with modern technology. Products are marketed through all India network marketing and after sales service offices are located in all metropolitan cities. The major customer of the company is Indian railways. Being a public sector company KEL has its own limitations. But when we analyses the organization, through the efficiency of work and the brand name they have created among their customers as well as competitors their work was more than that of a private sector company. This is one of the factors that make the organization in the lime Employees strength of KEL is nearly 400.Their main product is Brushless Alternators, which is used for lighting and air-conditioning the rail coaches.KEL provides wide range of facilities to their workers. Even though the company faces some problems in recent years, the company is now in a profitable path.
81
BIBLIOGRAPHY
BOOKS Kothari C.R , Research Methodology, 2e: wishwa prakashan, New Delhi,1990 Kotler Philp, Marketing Management Prentice- Hall of India Pvt, Ltd.,2002
JOURNALS KEL Annual Report Production Manual
WEBSITE www.kel.co.in
82
APPENDIX ABBREVIATION
1. KEL 2. USP 3. DA 4. DC 5. HOD 6. VAT 7. KPSC 8. GRN 9. R& D 10. P/L 11. FGTN 12. PR 13. MKTG 14. AS&S 15. AM 16. CH 17. SW 18. USW 19. SI 20. JO 21. QAD 22. AAO 23. FY 24. P&A 25. D&D 26. F&A
- Kerala Electrical and Allied Engineering Company Limited - Unique Selling Proportion - Dearness Allowance - Direct Cost - Head of the department - Value Added Tax - Kerala public Service Communication - Goods Received Notes - Research and Development - Profit and Loss account Finished Goods Transfer Notes
- Purchase Return - Marketing - After Sales &Service - Assistant Manager - Charge Hand - Skilled Worker - Unskilled Workers - Security Inspector - Junior Officer - Quality Assurance Department - Assistant Account Officer Foundry
- Personal & Administration - Design & Development - Finance &Accounts
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BALANCE SHEET OF 2012-11, 2011-10 & 2010-09

Note No As at 31st March 2012(Amt) As at 31st March 2011(Amt)
Paticulars A. Equity & Liabilities 1.Share holders fund a) Share capital b) Reseve & surplus c) Money received against share warrants
1 2 _
871,480770 (1,030,503,021) _ (1159,022,251) _
871,480770 (967,674,141) _ (96,193,371) _
2. Share application money pending allotment 3. Non-current liabilities a) Long-term borrowings b) Deferred tax liabilities c) Other long-term liabilities d) Long-term provisions
3 _ 4 5
90,288,844 _ 10,811,884 109,852,026 210,952,754
80729,378 _ 12,748,519 103,167,228 196,645,125 227,449,394 171,264,967 438,106,424 35,161,307 871,982,092 972,433,846
4.Current Liabilities a) Short-term borrowing b) Trade payables c) Other current liabilities d) Short-term provisions Total B. Assets 1. Non-current assets a. Fixed assets i. Tangible assets ii. Intangible assets iii. Capital work in progress iv. Intangible assets under development
6 7 8 9
43,281,823 109,076,258 374,358,927 5,781,699 732,498,707 784,429,210
10
35,268,737 _ 35,067,444 _ 70336,181
38,910,272 _ 35067444 _ 73,977,716 55000 _ 39,985,837 648,271 114,666,824
10A
Non-current investment c. Deferred tax asset d. Long-term loans & advances e. Other non-current assets
b.
11 _ 12 13
55000 _ 19,367,748 648,271 90,407,200
84
Schedul e no I. Source of funds 1.Shareholders fund a) Shareholders fund b) Reserve and Surplus 2.Loan Fund a) Secured Loans b) Unsecured Loans Total II. Application of fund 1.Fixed Assets a) Gross Block b) Depreciation c) Net block d) Capital work in progress
As on 31-32011(Rs)
As on 31-32010(Rs)
A B C D
871480770 1567828 158643943 274889836 1306582377
713780770 1567828 234886031 314143151 1264377780
120384768 81474496 38910272 35067444 73977716
295541368 240323933 55217435 35067444 90284879 50000 183874018 410333034 16069425 72248640 682525117 3 70092698 92550142 219882277 954160624 12643377780
2.Investment 3.Current asset, loans and advances a) Inventories b) Sundry debtors c) Cash and Bank balance d) Loans and Advances
G H
55000 195211233 606195606 17561604 81019443 899987886
Less: Current liability and provisions a) Liabilities b) Provisions Net Current Assets P|L account Total
I 491942446 144737748 263307692 969241969 1306582377
85
Schedu le no III. Source of funds 1.Shareholders fund c) Shareholders fund d) Reserve and Surplus 2.Loan Fund c) Secured Loans d) Unsecured Loans Total IV. Application of fund 1.Fixed Assets e) Gross Block f) Depreciation g) Net block h) Capital work in progress
As on 31-32010(Rs)
As on 31-32009(Rs)
A B C D
713780770 1567828 234886031 314143151 1264377780
713780770 1567828 218805765 300457751 1234612120
295541368 240323933 55217435 35067444 90284879
266029893 232780391 33249502 6023791 902848879 50000 197376554 372712452 13919504 48659362 632667872
2.Investment 3.Current asset, loans and advances e) Inventories f) Sundry debtors g) Cash and Bank balance h) Loans and Advances
G H
50000 183874018 410333034 16069425 72248640 682525117
Less: Current liability and provisions c) Liabilities d) Provisions Net Current Assets P|L account Total
I 370092698 92550142 219882277 954160624 12643377780 340348652 84669373 207649847 933424830 1234612120
86

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AN ORGANIZATION STUDY AT KEL

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

1.2 OBJECTIVES OF THE STUDY

To study about the organization structure.

To understand about the function of various department.

To know the financial position of an organization.

To conduct SWOT and Porters five for analyzing competitive strategies.

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

1.4 SCOPE OF THE STUDY

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

2.1 INDUSTRIAL PROFILE

2.1.1 ELECTRICAL INDUSTRY

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

2.2 WORLD SCENARIO

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

2.3 INDIAN SCENARIO

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

2.4 STATE SCENARIO

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

3.1 COMPANY PROFILE

AN ORGANIZATION STUDY AT KEL

3.2 CORPORATE PROFILE

3.3 MANUFACTURING UNITS

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

Mamala Unit, Ernakulum District, Inception: 1968

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

Olavakkod Unit, Palakkad District, Inception: 1977

Edarikkod Unit, Malapuram District, Inception: 1988

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

3.5 Over Seas Partnerships:

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

3.7 KEL-KUNDARA UNIT

3.7.1 Vision Statement of KEL

To achieve our vision by:

3.7.2 Mission Statement of KEL

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

3.7.3 Core Values

3.7.5 Quality Policy

Institute of Management in Kerala, Kundara

AN ORGANIZATION STUDY AT KEL

3.8 PRODUCT PROFILE