G-XMR ENGINEERING WORKS AT TRICHY (STEEL MANUFACTURING)

CHAPTER I
ABSTRACT

The development of all manufacturing and consumer goods industries depend upon the extent of
development of iron and steel industries. This study will be a significant endeavour in describing
the functions of Steel &GXMR; Industrial Forgings Limited. The project highlights the study on
various departments and the functions undertaken in the organization. It depicts the way in which
the overall functions are performed and managed by the employees of the organization view
point, method and levels of analysis. The aim is to provide possible guidelines and suggestions
for improving the productivity managerial efficiency of the steel complex limited. The study is
useful in assessing the quality and the performance of the company. It is also basically aimed at
the exploration of various departments undertaken by the each department of GXMR, by
providing a better knowledge at the functional level departments such as works, materials,
finance and personnel etc. Apart from that interaction and interrelationships between different
departments are also identified.

INTRODUCTION OF THE STUDY

G-XMR Engineering Works, a well renowned heavy machining and fabricating industry has
expanded and spread its wings into software field for providing software solutions for all your
business needs.

G-XMR systems, is one of the leading Information Technology companies, operating from
Trichy, India. The company is in existence since June 2010. We are specializing in Software
Development Services such as building web-based applications, window based applications, web
server applications and web designing. Having a greater reach and accessibility, we at G-XMR
Systems promise you to provide with best solutions to your business software needs.
Our process and professionalism focuses in becoming industry leaders in the corporate world for
forthcoming decades. Each of our skilled software developers has their own unique style and
specific talents. We assess your needs and promise to match the outcomes with your expectations
OBJECTIVE OF THE STUDY

 To familiarize with business organization.

 Getting practical experience regarding the organizational function.
 To understand the functions of HR, Finance, Production and Marketing departments.
 To understand the culture in the organization and its effect on employees.
 To get industrial exposure and experience.

SCOPE OF THE STUDY:

The study on changing perception of customer would help us:-
 To know the change in demand pattern of the customer
 It would help us understanding the changes in the requirements & preferences.
 Study of perception act as a ladder to develop new product.

LIMITATION OF THR STUDY

 Although I have obtained wholehearted co-operation from employees and customers of

PWA but they could not manage enough time to deal with my report.
 The annual report and Web page are the main secondary sources of the information but
this information was not enough to complete the report and it was not identified clear
idea about this company.
 Due to some policies of the companies I couldn’t collect the organizational hierarchy to
show the organizational decisions flow.
 The main limitation for me was that relevant data and document collection was difficult
because of the confidentiality of the administration.

REASON OF THE STUDY

  Seeking a Training Internship position with in order to G-Xmr Engineering Works at
Trichy build upon skills necessary for the advertising industry.

 Obtain a Training Internship position at G-Xmr Engineering Works at Trichy that can
benefit from customer service skills and knowledge in economics.

 Results-oriented individual with a background in performing scientific research interested

in gaining a Training Internship position with G-Xmr Engineering Works at Trichy

 Looking for a Training Internship position at within the healthcare industry.

CHAPTER II

INDUSTRY PROFILE AND COMPANY PROFILE

INDUSTRY PROFILE

Steel is crucial to the development of any modern economy and is considered to be the back born
of human civilization. The level of per capital consumption of steel is treated as n important
index of the level of socio economic development and living standards of the people in any
country. It is a product of a large and technologically complex industry having strong forward
and backward linkages in terms of material flows and income generation. All major industry
economies are characterized by the existence of a strong steel industry and growth of many of
these has been largely shaped by the strength of their steel industries in their initial stages of
development. Steel industry was in the vanguard in the liberalization of the industrial sector and
has made rapid strides since then. The new Greenfield plants represent the latest in technology.
Output has increased, the industry has moved up in the value chain in exports have raised
consequent to a greater integration with the economy. The new plants have also bought about a
greater regional dispersion easing the domestic supply position notably in the western region. At
the same time, the domestic steel industry faces new challenges. Some of these relate to the trade
barriers in developed markets and certain structural problems of the domestic industry notably
due to the high cost of commissioning of new projects the domestic demand too has not
improved to significant levels .The litmus test of steels industry will be to surmount these
difficulties and remain globally competitive

HISTORY OF STEEL

Steel was discovered by the Chinese under the reign of Han Dynasty in 202 BC till 220AD. Prior
to steel, iron was a very popular metal and it was used all over the globe. Even the time period of
around 2 to 3 thousand years before Christ is termed as Iron Age as iron was vastly used in the
period in each and every part of life. But, with the change in time and technology, people were
able an even stronger and harder material than iron that was steel. Using iron had some
disadvantages but the alloy of iron and carbon fulfilled all that iron couldn’t do. The Chinese
people invented steel as it was harder than iron and it could serve better if it is used in making
weapons. One legend says that the sword of the first Han emperor was made of steel only. From
China, the process of making steel from iron spread to its south and reached India. High quality
steel was being produced in southern India in as early as 300BC. Most of the steel then was
exported from Asia only. Around 9th century AD, the smiths in the east developed techniques to
produce sharp and flexible steel blades. In the 17th century, smith in Europe came to know about
a new process of segmentations of produce steel. Also, other new and improved technologies
were gradually developed and steel soon became the key factor on which most of the economies
of the world started depending.

THE GLOBAL STEEL INDUSTRY

The current global steel industry is its steel industry is in its steel industry is in its best position in
comparing to last decades. The price has been rising continuously. The demand expectations for
steel rapidly growing for coming years the steel industry is also in a high price. The share of steel
industry is enjoying its 6th consecutive years of growth in supply and demand. And there is many
more merger acquisitions which overall the industry and showed some good results. The
supreme crisis has lead to recession in economy of different countries, which may lead to have a
negative effect on whole steel industry in coming years. However steel production and
consumption will be supported by continuous economic growth.

CONTRIBUTION OF COUNTRIES TO GLOBAL STEEL INDUSTRIES

The countries like China, Japan, India, and South Korea are in the top of the above in steel
production in Asian production. China accounts for the one third of total production i.e. 419 MT,
Japan accounts for 9%i.e. 118MT, India accounts for 53 MT and South Korea is accounted for
49MT which all totally become more than 501% of global production. Apart from this USA,
BRAZILE, UK accounts for the major chunk of the whole growth

STEEL INDUSTRIES IN INDIA

At the time of independence , India had a small iron and steel industry with production of about a
million tons (MT).In due course ,the government was mainly focusing on developing basic steel
industry , where crude steel constituted a major part of the total steel production .Many public
sector units were established and thus public sector had a dominant share in the steel production
till early 1990’s .Mostly private players were in downstream production which was mainly
producing finished steel using crude steel products Capacity ceiling measures were introduced.

Till early 1990’s, when economic liberalization reforms were introduced, ton; for additional
capacity creation producers had to take license from the government; foreign investment was
restricted; and there were restrictions on imports as well as exports.

Major developments that occur at the time of liberalization, they are;

 Large plant capacities they were reserved for public sector were removed
 Import tariffs were reduced from 100% to 5%
 Decontrol of domestic steel prices.
 Foreign investment was encouraged and the steel industry was part of the high priority
industries for foreign investment and implying automatic approval foreign equity
participation up to 100%. And
 System of freight ceiling was introduced in place of freight equalization scheme.

As a result the domestic steel industry has since then become market oriented and integrated with
the global steel industry. This has helped private players to expand their operations and bring in
new cost effective technologies to improve competitiveness not only in the domestic but also in
the global market. Recently the steel industry is receiving significant foreign investment such as
POSCO-south Korean steel producer, and Arcelor-mittal group –UK/Europe based steel
producer announcing plans for establishing about 12MT production unit in each in India. The
Indian steel industry is showing promising future growth, with a production of about 1 MT at the
time of independence, has come long way to reach the production of about 57 MT in 2006-2007.

Impressive development of the steel industry with active participation of private sector and
integration of Indian steel industry with the global steel industry has also induced the govt. to
come up with a national steel policy in 2005. The national steel policy 2005 was drafted with the
aim of establishing rod map and frame work for the development of the steel industry. The
policy envisages steel production to reach at 110mt by 2019-2020 with annual growth rate of
7.3%. as later will show these expectations are not excessively high.

The most recent addition is 3mt integrated steel plant with modern technology at TRICHY .
GXMR accounts for over 40% of India’s crude steel production. GXMR comprises of nine
plants including five integrated and four special steel plants. Of these one was nationalized and
two were acquired; several were set up in collaboration with foreign companies. GXMR also
owns mines and subsidiary companies.

MAJOR PLAYERS OF STEEL IN INDIA

PUBLIC SECTOR

 Steel Authority Of India Limited(Gxmr)

 Rashtriya Ispat Nigam Limited(Rinl)
 Metal Scrap Trad Corporation (Mstc)
 Ferro Scrap Nigam Limited(Fsnl)
 Hindustan Steel Works Constuction Limited(Hscl)
 Mecon Ltd.

PRIVATE SECTOR

 Tata steel ltd.

 Essar steel ltd.
 Jsw steel ltd.
 Jindal steel& power ltd.(jspl)
 Ispat industries ltd.(iil)
INDUSTRY PROFILE

Steel means generally hard, strong, durable, malleable alloy of iron and carbon, usually
containing between 0.2 and 1.5 percent carbon, often with other constituents such as manganese,
chromium, nickel, molybdenum, copper, tungsten, cobalt, or silicon, depending on the desired
alloy properties, and widely used as a structural material. The development of all manufacturing
and consumer goods industries depend upon the extent of development of iron and steel
industries. The most important among the industries directly dependent on iron and steel
industries are engineering, wagon building and other transport equipment industries. The
development of agriculture is dependent on steel both directly and indirectly. Steel production
has a multiplier effect on the development of all other industries. So it has been rightly called
Mother Industry.

WORLD SCENARIO

The earliest known production of steel is a piece of ironware excavated from an archaeological
site in Anatolia (Kaman-Kalehoyuk) and is about 4,000 years old. Other ancient steel comes
from East Africa, dating back to 1400 BC. In the 4th century BC steel weapons like the Falcate
were produced in the Iberian Peninsula, while Noric steel was used by the Roman military. The
Chinese of the Warring States (403–221 BC) had quench-hardened steel while Chinese of the
Han Dynasty (202 BC – 220 AD) created steel by melting together wrought iron with cast iron,
gaining an ultimate product of carbon-intermediate steel by the 1 st century AD. The Tamilnadu
people of East Africa discovered a type of high-heat blast furnace which allowed them to forge
carbon steel at 1,802 °C (3,276 °F) nearly 2,000 years ago. This ability was not duplicated until
centuries later in Europe during the Industrial Revolution.

Wootz steel was produced in India by about 300 BC. Along with their original methods of
forging steel; the Chinese had also adopted the production methods of creating Woods steel, an
idea imported into China from India by the 5th century AD.

In Sri Lanka, this early steel-making method employed the unique use of a wind furnace, blown
by the monsoon winds, that was capable of producing high-carbon steel . Also known as
Damascussteel, wootz is famous for its durability and ability to hold an edge. It was originally
created from
A number of different materials including various trace elements. It was essentially a
complicated alloy with iron as its main component. Recent studies have suggested that carbon
nano-tubeswere included in its structure, which might explain some of its legendary qualities,
though given the technology available at that time, they were produced by chance rather than by
design. Natural wind was used where the soil containing iron was heated up with the use of
wood. The ancient Sinhalese managed to extract a ton of steel for every 2 tons of soil a
remarkable feat at the time.

Crucible steel, formed by slowly heating and cooling pure iron and carbon (typically inthe form
of charcoal) in a crucible, was produced in Merv by the 9th to 10th century AD. In the11th
century, there is evidence of the production of steel in Song China using two techniques:
a"berganesque" method that produced inferior, inhomogeneous steel and a precursor
to the modern Bessemer process that utilized partial DE carbonization via repeated forging under
a cold blast .Since the 17th century the first step in European steel production has been the
smelting of iron ore into pig iron in a blast furnace. Originally using charcoal, modern methods
use coke, which has proven to be a great deal cheaper.

The production of steel by the cementation process was described in a treatise published in
Prague in 1574 and was in use in Nuremberg from 1601. A similar process for case
hardeniarmour and files was described in a book published in Naples in 1589. The process was
introduced to England in about 1614. It was produced by Sir Basil Brooke at
Coalbrookdaleduring the 1610s. The raw material for this was bars of wrought iron. During the
17th century taws realized that the best steel came from ore grounds iron from a region of
Sweden, north of Stockholm. This was still the usual raw material in the 19th century, almost as
long as the process was used.

Crucible steel is steel that has been melted in a crucible rather than being forged, with the result
that it is more homogeneous. Most previous furnaces could not reach high enough temperatures
to melt the steel. The early modern crucible steel industry resulted from the invention of
Benjamin Huntsman in the 1740s. Blister steel (made as above) was melted in a crucible or in a
furnace, and cast (usually) into ingots.The modern era in steelmaking began with the
introduction of Henry Bessemer's
Bessemer process in 1858. His raw material was pig iron. This enabled steel to be produced
enlarge quantities cheaply, thus mild steel is now used for most purposes for which wrought iron
was formerly used. The Gilchrist-Thomas process (or basic Bessemer process) was an
improvement to the Bessemer process, lining the converter with a basic material to remove
phosphorus. Another improvement in steelmaking was the Siemens-Martin process, which
complemented the Bessemer process.

The Asian countries have their respective dominance in the production of the steel all over the
world. India being one among the fastest growing economies of the world has been considered as
one of the potential global steel hub internationally. Over the years, particularly after the
adoption of the liberalization policies all over the world, the World steel industry is growing very
fast.

Steel Industry is a booming industry in the whole world. The increasing demand for it was
mainly generated by the development projects that have been going on along the world,
especially the infrastructural works and real estate projects that has been on the boom around the
developing countries. Steel Industry was till recently dominated by the United States of America
but this scenario is changing with a rapid pace with the Indian steel companies on an acquisition
spree. In the last one year, the world has seen two big M&A deals to take place:-

The Mittal Steel, listed in Holland, has acquired the world's largest steel company
calledArcelor Steel to become the world's largest producer of Steel named Arcelor-Mittal.

Tata Steel of India or TISCO (as listed in BSE) has acquired the world's fifth largest steel
company, Corus, with the highest ever stock price.

It has been observed that Steel Industry has grown tremendously in the last one and a half decade
with a strong financial condition. The increasing needs of steel by the developing countries for
its infrastructural projects have pushed the companies in this industry near theiroperative
capacity.

The most significant growth that can be seen in the Steel Industry has been observed during the
period 1960 to 1974 when the consumption of steel around the whole world doubled. Between
These years, the rate at which the Steel Industry grew has been recorded to be 5.5 %. This
roaring market saw a phase of deceleration from the year 1975 which continued till 1982. After
this period, the continuous fall slowed down and again started its upward movement from the
early1990s.Steel Industry is becoming more and more competitive with every passing day.
During the period 1960s to late 1980s, the steel market used to be dominated by OECD
(Organization for Economic Cooperation and Development) countries. But with the fast
emergence of developing countries like China, India and South Korea in this sector has led to
slipping market share ofOECD countries. The balance of trade line is also tilting towards these
countries. The main demand creators for Steel Industry are Automobile industry, Construction
Industry, Infrastructure Industry, Oil and Gas Industry, and Container Industry. New innovations
are also taking place in Steel Industry for cost minimization and at the same time production
maximization. Some of the cutting edge technologies that are being implemented in this industry
are thin-slab casting, making of steel through the use of electric furnace, vacuum degassing, etc.

The Steel Industry has enough potential to grow at a much accelerated pace in the coming future
due to the continuity of the developmental projects around the world. This industry is at present
working near its productive capacity which needs to be increased with increasing demand.

In the year 2012, the global steel production has made a record level by crossing the 1000million
tones. Among the top producers in the steel production, China ranked 1 in the world. Production
of steel in the 25 European Union countries was at 16.3 mmt in January 2011.Production in Italy
was increased by 11.5 percent in comparison to the same month in 2004. Italy produced 2.5 mmt
of crude steel in January 2011. Austria produced 646,000 metric tonnes.According to rating
made by the "World Steel Dynamics", Indian HR Products are categorized in the
Tier II category quality of products. Both EU and Japan have ranked the top.USA and South
Korea comes as like India.

WORLD STEEL INDUSTRIES

World Steel Industries are undergoing a booming phase with all sorts of Mergers and
Acquisitions taking place all around the world. The key market players are now subjected to
fierce competition from the new companies from developing economies. From the early
1990s,China and South Korea have emerged significantly in the World Steel Industries. In the
very recent years India is also on a winning streak in terms of M&A. First of all, it was NRI
LaxmiMittal's, Mittal Steel (listed in Netherlands) to acquire Arcelor, many times greater
than it. Then came the Indian big shot, TATA Steel to acquire Corus, the fifth largest steel
company in terms of production capacity. Thus, it is being observed that World Steel Industries
is going at a very competitive pace and time where the OECD (Organization for Economic
Cooperation and Development) countries don't have their monopoly on the steel market.

The main demand for World Steel Industries comes from the construction industry. Withthe
developmental works on a rise in both the developed and developing countries, the infrastructure
industry along with real estate boom, the demand for steel is rising like anything. For example,
more and more real estate companies are using steel frames for building houses. InUSA, it had
been observed in the early 1990s that the use of steel for house building has increased by nearly
five times in just one year. The automobile industry is also coming up fast as a potential
demander for World Steel Industries because from a research it has been found out that the use
of steel in the vehicles would cause the weight of the same to lessen by almost twenty five
percent. The other industries who demand steel industries involve appliance industries, Oil and
Gas industries and container industries. On the technological front, the World Steel Industries are
making rapid improvement with the implementation of cutting-edge technologies like steel
making through the utilization of electric furnace, continuous annealing, casting of thin slabs,
and vacuum degassing.

INDIAN SCENARIO

The history of the modern iron and steel industry in India began in 1870 when the BengalIron
Works Company setup its plants at Kulti in West Bengal. However the first effort al large
scaleproduction got under way when the Tata Iron Steel Company (TISCO) was setup at
Jamshedpur in1907. This was followed by the establishment of Indian Iron and Steel Company
(IISCO) at Burnpurin 1919. Various five year plans saw the establishments of major public
sector steel plants in various parts of India, which worked as the engines of development and
economic growth of India.
COMPANY PROFILE

GXMR Engineering Works, the flagship division of the group was established in the year 2001.
This division with state of the art facilities produces high quality TMT BARS, ANGLES,
SQARES and all section of TOR steels. By adopting highest manufacturing standards and using
cutting edge technology, this manufacturing facility at trichy produces TMT bars of top quality.

GXMR STEELS IS AN ISO 9001-2008 COMPANY

The company is engaged in the business of manufacturing TMT bars and wire rods of various
sizes and specifications according to the BIS standards (ISI) and needs of the customers up to a
capacity of 3000 tons per month on double shift basis. The rolled products are steel rods
(CTD/TMT) from 5mm to 16mm. these rolled products, namely 5, 6, 8,10,12,16 bars are
extensively used in buildings and other civil construction work in Tamilnadu. Our rolling mill
unit is spread over 4.5 acres of land with adequate infrastructure facilities like power, transport
and communication facilities. Gxmr Steels steadily gross on its core ideals of quality
management, innovation and understanding customer’s needs, through continuous quality
improvements in steel products. Gxmr Steels were able to strength its position as a market
leader. The company’s products command a good premium over the market prices. Now GXMR
emerging as top one among the reputed rolling mills Tamilnadu.

High quality thermo mechanically treated (TMT) bars are manufactured using the most
contemporary technology available worldwide and supervised by qualified metallurgist and
structural engineers. The products are BIS approved and meet all the standards of ISI and marked
ISI label. The salient features of the rolling mill include an extensive billet /ingots yard fore cast-
wise (CHEMICAL) stacking of billets; this will help to get better consistency in TMTbars.TMT
steels bars are made using rapid quenching and tempering technology. It allows the production of
bars to be par with BIS and international standards. Hot rolled bars from steel billets are
subjected to PLC-controlled online thermo- mechanical treatment; the bars are made pass
through heat treatment over three successive stages.

 Quenching
 Self tempering
 Normalizing (atmospheric cooling).
After quenching process, the bars are cut to desire sizes with the auto sharing machines and
transferred to the cooling bed where in they are naturally cooled to get the defined structure.
Unlike conventional bars that are subjected to force cooling cold twisting. TMT bars have high
strength, greater yield and elongation, uniform micro structure, toughness, ductibility and greater
weld ability. Hence they are equipped with the requisite properties like outer rib arrangements as
per the standard of BIS with CNC machines to PULLOUT test of BIS, also to provide strengthen
to concrete structures for enduring natural hazards. Further, our quality controllers also test each
product at both, procurement and delivering stages. This helps in avoiding any consistency at the
client ends.

OBJECTIVES OF THE COMPANY

 Improving customer satisfaction.

 Ensure sale and environment friendly process through active involvement.
 Create awareness amongst the employees.
 Encouraging our suppliers and contractors to adopt quality.

VISION

 To be world class manufacturers of small and medium class sea going vessels, barges etc.
 To be a high quality supplier of general engineering goods
 To be a cost effective source of structural steel products.

MISSION:

 Identifying the needs of customers for product services and meeting customers’ needs
and supply.
 Ensuring that the quality product to built at every stage of operations
 Retaining customer confidence and loyalty by providing quantity product and services.
 Committed work force through continual enrichment of skill and knowledge.
 Contribution in quantity steel production of nation.
PRODUCT PROFILE

The company now manufactures 5mm, 6mm, CTD bars (cold twisted deformed) 8mm, 10mm,
12mm TMT bars. The raw material for the unit is steel ingots, billets which is readily available.
In the state of Tamilnadu, there are five induction furnace units and one billet making unit
without rerolling facility and their total production is 7500ton of steel billets. The other input and
consumable like for furnace oil, rolls are readily available at economic price in the domestic
market.

PROCESS

Steel ingots used for the rolling are loaded into reheating furnace to heat them to required
rerolling temperature. The heated steel ingots or billets then removed from the reheating furnace
and rolled in proposed oiling mill consisting of stands driven by high capacity motors.CTO bars
rolled in the mills be coiled by using coiler machine

CORPORATE OBJECTIVES OF GXML

GXML being govt. of Tamilnadu enterprises is accountable to the government of Tamilnadu and
through them to people of India. The company’s policies and action will therefore be governed
by consideration of public good and by its obligations towards its shareholders, customers,
suppliers, employees and the community in which it exist. Consistent with these obligations the
company set for itself to the following obligations and objectives to be achieved.· To develop
steel based industries and services in Tamilnadu. To manufacture, sell, purchase, export and deal
in steel or connected products.· Servicing core sector like defence, railways, power generation
and transmission in and outside Tamilnadu and promoting ancillary units. To implement rural
technology plans through its modern facilities for casting, fabrication, machining and its
divisions of power engineering agency exports and trading. To establish, maintain, conduct and
otherwise subsides research laboratories, power units and experimental workshop for scientific
and technical research experiments. To acquire buy purchase or otherwise and to carry on, like
business of manufactures, sellers and dealers in light and heavy road transporters, self propelled
and non powered hauled power units, rolling stock for ministry of railways and for export abroad
different types of road transporters for ministry of defence marine. Crafts light medium and other
applications including those needed by ministry of defence barges for inland water ways as well
 as for use along the cost. Apart from the above the company has certain vital social and
economic goals for the welfare of the company and the state.

ORGANIZATION CHART

CHAIRMAN CUM MD

EXECUTIVE DIRECTORS

DIRECTORS

Accounts in Purchase in Stores in HRD in charge Production in

charge charge charge charge& MR

Accountant Purchase Store Sales Securities

1&2 assistant assistant assistant

Cashier Driver Office boy Yard

supervisor

Foreman

Mill shift in Mechanical Electrical in Workshop in TM filters TM contract

charge in charge charge charge

Mechanical Electrician TM TM
filters FILTERS contract
TM FILTERS
TURNERS
Mobile crane
operator
I/M FILTERS Mechanical Electrical SHADERMAN
helpers helpers Loading
contractor
F R FILTERS WELDER
Unloading
FIREMAN GAS CUTTER contractor
 CHAPTER III

FUNCTIONAL AREAS OF ORGANIZATION

ORGANIZATION CHART OF STEEL &GXMR; INDUSTRIAL

Organization structure is a basic framework within which managers decision making behavior
take place. Structure basically deals with relationships. All science try to discover the structural
relationship in the phenomenon in which they are interested in management, it is needed to
understand how organization are structured and how these structures are crested and maintained.
In a simple term, structure is a pattern in which various parts or components are interrelated
printer connected. The organization structure is the pattern of relationships among various
activities and position. Since these positions are held by various persons, the structure reflects the
relationship among people in the organization. The organization structure can be viewed as an
established pattern of relationship among the components of the organization. In a large and
complex organization, structure is set forth initially by the design of the major components or
subsystems and then by establishing relationship among these sub systems. It is the patterning of
these relationships with some degree of permanency, referred company as organization structure.
Design of basic structure involves such issues as how the work of the organization will be
divided and assigned among various positions, groups, departments and how the coordination is
necessary to accomplish total organizational objectives.

The operations and successes of GXMR are taken care of by its capable management and Board
of Directors. The senior management ensures that collective strengths are effectively leveraged
towards attaining the Company’s vision.

 Purchase Department
 Production Department
 Finance Department
 Human Recourse Department
 Marketing Department
  System Department

PURCHASE DEPARTMENT

Purchase department is responsible for purchase of scraps used in furnace.Scraps is brought from
domestic market and international market mainly they are importing these scraps from various
countries.

STRUCTURE OF PURCHASE DEPARTMENT

Purchase incharge

Purchase assistant

Officers

Supervisors

DOMESTIC:

Company purchase raw material from Tamilnadu, Karnataka and Andrapradesh. It gets raw
material for competitive prices. There are various agencies for supplying these raw materials. So
the company need not worry for the availability of raw materials. Purchase department gives
frozen production schedule to the agents, so that the agents are able to provide raw materials
without interruption. The company gives permission for their service at the fixed percentage of
value of the raw materials.

IMPORT:
GXMR Engineering Works has been importing the various types of raw materials to be used in
the furnace division for manufacturing of steel bars. The importing of quality raw materials is
done for quality manufacturing products. Materials are imported from the following countries.

 United Kingdom
 Netherlands
 United Arab Emirates
 Mauritius
 Switzerland
 About 75% of import is made from UK and it is done through containers. Containers
capacity is about 3000tones. Agents are appointed to perform import procedure they will
be sending to perform import procedure they will be sending to exporting country to test
the products quality.
 No of agents 4
 Period of the receipt 20-40 days
 Import duty on raw materials 16%.
 Port cochin

METHOD OF PAYMENT:

Through letter of credit pre-shipment facility for import with maximum of 6 month is available.

PORT OF CLEARANCE:

Cochin airport and clearance function takes place within 60 day of raw material arrival.

TRANSPORTATION

Import scrap reaches the port and it’s transported to its production center through Lorries.
Transport agencies are used for this purpose.

TABLE SHOWING RAW MATRIAL PURCHASED DURING 2008-09 TO 2012-13

GRAPH SHOWING THE RAWMATERIAL PURCHASED DURING 2008-09 TO 2012-13

40000
35000
30000
2452
YEAR RAWMATERIAL PURCHASED(Qty in MT) 25000
20000
2008-2009 24527.335
15000
2009-2010 31979.965
10000
2010-2011 33909.730 5000
2011-2012 32968.60 0
2008-
2012-2013 34897.765

PRODUCTION DEPARTMENT

Production is the process by which raw material and other input are converted into finished
products. It requires the coordination of various inputs like raw material, machineries and other
materials. Production management refers to the application of management principles to the
product functional factory. The proper implementation of this management function in
production process will implement continuous flow of production.

The production management is an important function of the production. Production must be

carried out at the lowest costs and right quality goods are produced at proper time. This can be
ensured only through proper planning and control of production.

The production department is in the control of production manager, MUHAMMED YUSAF

SHA. For production steel, the main raw materials are ingots and billets which are purchased
from various concerns. The production target 150mt per day and input/output ratio is 100:93
which means 93% of output is derived. Among rest 7% IS, 4% scrap and 3% is loss. In
production department there are around 150 employees.

FUNCTIONS:

 To keep ISO quality products

  Maximum production with high quality and quantity
 To ensure high manpower productivity
 To maintain good work environment in factory
 To ensure safety and security to employees.

LOADING AND UNLOADING:

Loading and unloading is done in a semi-mechanical manner. Workers till take the steel rods
from the production place to the loading area. And from there the machines will load those
finished goods to and from the vehicles.

SCHEDULING:

The company is working in three shifts.

 First shift 9:00 AM to 5:00 PM

 Second shift 5:00 PM TO 8:00 AM
 Third shift 1:00 AM to 8:00 PM

In the first shift there are 130 employees working with the concern. In the second shift there
are so employees working. And in third shift there are so employees working with the
concern.

PRODUCTION DEPARTMENT CHART

PRODUCTION IN CHARGE

foreffman
FOREMAN YARD SUPERVISOR QUALITY CONTROL IN CONTRACTORS
CHARGE

T/M SUB CONTRACTORS

T/M FILTERS CHEMIST
CONTRACTORS

MOBILE CRANE
OPERATORS LAB ASSIST

LOADING CONTRACTORS

UNLOADING
PLANT LAYOUT

Plant layout detailed with arrangement of machines and facility. Instead the factory area, the
machine should be arranged in such a way that production flow smoothly. The type of plant
layout adopted in GXMR Engineering Works is process layout that is ,manufactures are arranged
in such a manner that production process is easily carried out in to machineries and it is
processed by cleaning, conditioning and milling. Process layouts are found primarily in job
shops or firm that produces customized, low volume products that may be required different
processing requirements and sequences of operation of a similar nature of functions are grouped
together.

TOTAL QUALITY MANAGEMENT TOOLS, POLICIES

 Supply in time
 Cost effectiveness
 Adapting changes as required competing in the customer driven market
 Mentoring employees at all levels in reviewing quality and productivity related objectives
for continual improvement and sustainable growth.

INVENTORY MANAGEMENT

As in the case of steel production in Tamilnadu, there won’t be any excess stock because the
whole steel manufacturing concern can only satisfies 80% of the aggregate demand. But there is
a stores department in the company which deals with inventory management. This department
will collect and store all the raw material required and will supplies necessary material in time
and order necessary material required.

MATERIAL REQUIREMENT PLANNING

Material requirement planning is done by stores department and that order will pass to the
purchase department. As per their strategy they had a steady demand for material so the stored
materials. They have introduced new machines and all the work gives faster than earlier and
according to that they have ordered and stocked more billets for an advance of one month’s
production.
QUALITY PRODUCTION:

The company has certified by:

 ISO 9001-2008
 ISI 789/2008

AUDITING AND INSPECTION:

The auditing for the certification of ISO and ISI is done in a particular duration. That is:-

 ISO- once in 6 months.

 ISI- once in a year

SAFETY MEASURES:

All the safety measures that a company must follow under the companies act are following by
the concern. As the company is giving the due importance to the human resource also; the
concern is very keen in the health and safety measures.

Fire and safety measures

 Machinery safety
 Machinery guards
 Safety alarms etc.

MACHINARY MAINTANANCE:

As the company is having a number of machineries, all machineries are maintained on different
intervals. The minimum maintaining period is 6 months. And some machinery is maintained
after1 year. There is mechanical in charge and his helpers to look in to these maintenance affairs.

PRODUCT STANDARDS:

The company is having two certifications for the product standardization.

 ISO 9001-2008
 ISI 789/2008
 The ISO certification is audited and inspected by quality management system. The ISI
certification is audited and inspected by bureau of Indian standards.

PRODUCTION PROCESS FLOW CHART

RECEIVING INGOTS/BILLETS FROM STORES AGAINST THE MATERIAL REQUIREMENT

INGOTS/BILLETS-PREHEATING IN FURNACE

ONLINE COILING
Q.C REDUCTION PROCESS
5mm, 6mm
INSPECTION

PURCHASING 5mm, 6mm, 8mm, 10mm, 12mm (CTD& TMT) TO

THE COOLING BED

SIZE CUTTING AS PER OUR REQUIREMENT IN LENGTH

SHIFTING TMT OF 8mm, 10mm, 12mm TO YARD FOR SHIFTING CTD OF

BENDING 5mm, 6mm TO
TWISINGM/C BEDS
FOR TWICING
BENDING AND
PLAN-NIL, ANGLE-NIL, PLATES-NIL BUNDLING
TABLE SHOWING THE PRODUCTION OF THE STEEL DURING THE YEAR 2008-
2009 TO 2012-2013

YEAR PRODUCTION(Qty in MT)

2008-2009 26478
2009-2010 31279

2010-2011 38096
2011-2012 37961
2012-2013 38733
 40000
35000
30000
25000
20000
15000
10000
5000
0
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

PRODUCTION DEPARTMENT

Production system plays a very important role in achieving organizational excellence. But the
lack of proper planning, co-ordination and control often affects the capabilities of this system
because of which these systems are not utilized fully and effectively leading to many undesirable
situations forcing many organizations to become less competitive. A number of organizations
worldwide have achieved and sustained excellence by effective production management.
Effective production management involves understanding of the characteristics of various types
of production system, identification of the dynamics of the different phases of the management
process, realizing the potential of different analytical tools, learning nuances of the
implementation of these tools, visualizing the impact of various uncertain situation and
developing the ability to react under various scenarios to achieve consistently excellent business
result. There is evidence to show how a number of organizations achieved world class status by
effective management of their production system. These organizations achieved superior quality,
higher productivity, perfect delivery performance, customer satisfaction and enterprise
excellence all with lower cost. Production is the basic activity of all industrial units. All the other
activities revolve around this activity. The end product of the production activity is the creation
of goods and services for the satisfaction of human wants. The production activity is nothing but
the step-by-step conversion of one form chemically or mechanically. This is done in factories
with house manufacturing. The basic inputs of production process are men, machine, plant
services and methods. The product of farm, sea forest and mine are used as raw materials on
which the processing is done to create or enhance the firm utility it should be noted that the
finished product by one manufacturing unit does not always furnish a readymade product for the
ultimate consumption. Production management deals with decision making related to production
process so that the resulting goods or services is product to specification, in the amounts and by
the schedule demanded and at minimum cost.

ORGANOGRAM OF PRODUCTION DEPARTMENT

The Production department consists of two divisions, the forge shop and the Materials
Preparation division which is headed by a Senior Manager and an Asst. Manager. Based on the
monthly and weekly plans, jobs are allocated and recorded in forge shop. The process owners are
the primary head of production department and a secondary shift in charge. There are 69 skilled
and 15 unskilled labors. The Production Manager is responsible for day-to-day production within
the forge shop. He supervises, motivates, and supports the staff daily, applying a team approach
and maintaining open communication. The Production Manager plans, schedules, strategizes,
and oversees all production activities while continually building sales and maintaining
profitability. The Production Manager performs essential functions to ensure overall Manager
Assistant Manager FORGE SHOP Engineer Asst. The Production Manager is responsible for the
effective and efficient planning and scheduling of personnel and equipment to reduce bottlenecks
and problems.

FUNCTIONS
  Planning daily production according to annual target.
 Monitoring actual production &GXMR; checking any deviation.
 The entire production activities of the company are under this department. GXMR has a
well-established production planning and control system
 . This section deals with the issue of work or der, materials issue from store, dispatching,
loading and scheduling production progress and material planning. The existing
production system in GXMR is a better one as total is concerned.

PROCEDURE

 For Production Planning and Control Monthly and weekly plans are communicated to the
production head by planning. Based on the plans, the production head will communicate
to the shift in-charge about daily plan. Jobs are then all located and recorded in forge
shop job and cum shift wise production report. Set up verification is done before starting
the work order and is recorded. After the approval of-OLP set up, bulk production is
started. Corrective actions are initiated for process non-conformances. Analysis of set up
NCs is done daily for implementing corrective actions. Shift in-charge monitors the
process and the inspections are carried out by the QA. Route card cum work order is
issued and it is updated by the shift in-charge for the required process and the work order
is updated and moved along with the material till the completion of all process, which is
referred for trace ability. If any rejection is found in the process, the same will be updated
in the NC register and the route card and the material is identified with rejection tag for
disposition action. Components are offered to QA for final inspection. After production,
die should be cleaned and handed over to the die shop.

PRODUCTION PROCESS

DIE DESIGN &GXMR; DEVELOPMENT

GXMR's design &GXMR; engineering capabilities are ably backed by a well equipped Die
Shop, setup along modern lines with Double Spindle Copy Milling Machines, Electrical Die
Sinking Machine, CNC Die Sinking Machine, CNC Turning Centre, Radial Drilling machines,
Heavy Duty Plano miller, Lathes, Tool &GXMR; cutter grinders, etc. The design and
development of the die holds the key to blemish-free forgings. GXMR designs both single-
impression and multi-impression dies. The design, of course, is related to the forging drawings.
And the decision on the type of die to be used is based on the specific requirement of each case.
The care that goes into the design of each die also goes into this election of raw materials and the
sequence of operation that follows. To facilitate uninterrupted operations, GXMR is equipped
with standby Power Generators. Forging dies are usually made of high-alloy or tool steel. Dies
must be impact resistant, wear resistant, maintain strength at high temperatures, and have the
ability to withstand cycles of rapid heating and cooling. Raw material Charging scrap Setting of
Dies and Tools Melting Stage Oxidation stage Reduction Stage Forging Finished product
Dispatching Testing To keep pace with hi-tech developments, GXMR has equipped itself with
CAD, CAM facilities like DELCAM for three dimensional modelling of Product, Die &GXMR;
Tool design etc. thereby minimizing the development cycle time. All these qualities have helped
GXMR grow quickly into a premier forging unit, capable of producing forgings with close
dimensional tolerances.

MANUFACTURING OF FORGINGS

Forging is a manufacturing process involving the shaping of metal using localized compressive
forces. Forged parts usually require further processing to achieve a finished part. Main
production machinery of GXMR comprise closed die forging hammers of 10 Ton (16000 ft.lb)
and 6Ton (10650 ft.lb) capacity. Open die forgings requirements are met with a1Ton clear space
hammer. Other supporting facilities include shot blasting machines, Pneumatic trimming press
of1000Ton and 500Ton capacity, Hydraulic trimming press of 1200Ton capacity, Billet shearing
machines and a number of oil-fired and electric furnaces for soaking as part of forging process.
There is a modern heat treatment plant equipped with number of furnaces both LDO fired and
electrically heated and a charging machine which takes care of loading and unloading of heat
treatment charges.

DROP FORGING

Drop forging is a forging process where a hammer is raised up and then & quot; dropped & quot;
on to the work piece to deform it according to the shape of the die. There are two types of drop
forging: open-die drop forging and closed-die drop forging. As the names imply, the difference is
in the shape of the die, with the former not fully enclosing the work piece, while the latter does
Open-die forging is also known as smith forging. In open-die forging, a hammer strikes and
deforms the work piece, which is placed on a stationary anvil. Open-die forging gets its name
from the fact that the dies (the surfaces that are in contact with the work piece) do not enclose the
work piece, allowing it to flow except where contacted by the dies. Therefore the operator needs
to orient and position the work piece to get the desired shape. The dies are usually flat in shape,
but some have a specially shaped surface for specialized operations. For ex GXMRle, a die may
have around, concave, or convex surface or be a tool to form holes or be a cut-off tool.

OPEN-DIE DROP FORGING

Open-die forging lends itself to short runs and is appropriate for art smithing and custom work.
In some cases, open-die forging may be employed to rough-shape ingots to prepare them for
subsequent operations. Open-die forging may also orient the grain to increase strength in the
required direction. Cogging is successive deformation of a bar along its length using an open-die
drop forge. It is commonly used to work a piece of raw material to the proper thickness. Once the
proper thickness is achieved the proper width is achieved via edging. Edging is the process of
concentrating material using a concave shaped open die. The process is called edging, because it
is usually carried out on the ends of the work piece. Filtering is a similar process that thins out
sections of the forging using a convex shaped die. These processes prepare the work pieces for
further forging processes.

IMPRESSION-DIE DROP FORGING

Impression-die forging is also called closed-die forging. In impression-die forging, them etalis
placed in a die resembling a mould, which is attached to the anvil. Usually the hammer die is
shaped as well. The hammer is then dropped on the work piece, causing the metal to flow and fill
the die cavities. The hammer is generally in contact with the work piece on the scale of
milliseconds. Depending on the size and complexity of the part the hammer may be dropped
multiple times in quick succession. Excess metal is squeezed out of the die cavities, forming
what are referred to as flash. The flash cools more rapidly than the rest of the material; this cool
metal is stronger than the metal in the die so it helps prevent more flash from forming. This also
forces them etal to completely fill the die cavity. After forging the flash is removed. Their annual
capacity is around 7500 Metric Tons. They manufacture closed die forgings in the weight range
of 5 kg to 450 kg and open die forgings within 1kg to 75kg net weight per piece and ring rolling
up to 650mm OD. The company has got the capability to manufacture forgings out of Carbon
steels, Alloy steels, Stainless steels, Maraging steels, Aluminium alloys, Titanium alloys etc.
FORGING &GXMR; HEAT TREATMENT FACILITIES

The billets for forging are heated in oil fired or electric furnaces, closely controlling the
temperature to reduce the scale formation and overheating so that the metallurgical properties are
ensured in the final product. In addition, in-process inspection is carried out at all stages
and100% inspection for visual defects after forging. The accepted forgings are duly heat treated
to ensure its mechanical properties. By providing heat treatment services in-house, GXMR is
able to maintain greater control over heat treating process. The facility comprise batch furnaces
both oil fired &GXMR; electrical, continuous electrical heating furnaces, solution treatment etc.
to carry out annealing, normalizing, hardening, tempering, iso-thermal annealing, solution
treatment etc. or other operations as specified by the customer. Close temperature control and
process monitoring with the help of temperature recorders ensures uniform properties duly
supported by evaluation of metallurgical properties through representative test pieces.

TESTING/INSPECTION FACILITIES
Surface conditioning is done by shot blasting/grinding and final inspection is carried out once
again to ensure quality requirements. Non-conformities are taken care of by timely corrective
and preventive action. Calibration of electrical furnaces of GXMR is done by NABL accredited
laboratories like HAL, STIC, CUSAT etc. GXMR has set up a system of total quality control
consisting of an array of state-of-the-art speciality equipments where the products go through a
series of rigorous tests, the destructive test including tensile, jominy and impact testing, wet
analysis, carbon-sulphur determination, insitumetallography (where microstructure can be
observed without destroying the job) and non-destructive tests using Spectrometer, Microscope,
Magna flux crack detection, Die Penetrant,Ultrasonic flaw detection etc. GXMR is now
equipped with a new digital ultrasonic flaw detector which has got a range of 5mm to 5m in
steel. Setting and control of quality standards at all stages right from the receipt of raw material
to the finished product through quality plan makes them deliver superior quality forgings with
close dimensional tolerances and metallurgical properties.

MACHINING UNIT

GXMR has set up a complete machining unit to meet its post forge operations and to meet its
customer requirements. The machining unit is equipped with modern machineries to meet there
quirements. It was set up within 6 months record time, as a green field project. The main
machineries includes Vertical Machining Centre, Radial Drilling Machine, CNC Horizontal
Lathe, Magnetic particle testing machine, Shot blasting machine etc

FINANCIAL DEPARTMENT

Finance is the life blood of every organization. It is the fact that business need finance to make
more money. Financial management is that managerial activity which is concerned with the
planning and controlling of the firm’s financial resources. The managers are interested in this
subject because the most critical decision of a business enterprise are very closely related to
finance and an understanding of the theory of financial management provides them with
conceptual and analytical insights to make those decisions.
 STRUCTURE OF FINANCE DEPARTMENT

ACCOUNTS INCHARGE

ACCOUNTANT 1 ACCOUNTANT 2

CASHIER

OBJECTIVES

The objective of financial management or goals of business finance is to maximize the

company’s economic welfare. There are mainly two steps for achieving this specific objective.
They are;

 PROFIT MAXIMIZATION

Profit earning is the main aim of every economic activity. No business can survive without
earning profit. Profit also serves as a protection against the risk which cannot measure. Thus
profit maximization is considered as the main objective of the firm.
  WEALTH MAXIMIZATION

This objective helps in increasing the value of shares in the market.

FUNCTIONS

 Monthly accounting of invoice

 Making correction in the price
 Providing discount
 Preparing and maintaining proper accounts
 Retiring benefits
 Salary distribution

MAIN REGISTERS USED

 Cash book
 Main general ledger
 Purchase ledger
 Sales ledger

Significant accounting policies used by the company are:-

 Basis of preparation of financial statement:

The financial statement has been prepared under the historical cost convention in accordance
with the generally accounting principles and the provisions of the companies act 1956. The
company follows mercantile system of accounting and recognizes significant items of income
and expenditure on accrual basis.

 Fixed assets:-

Fixed assets are stated at cost of acquisition net of recoverable taxes accumulated depreciation
and impairment loss if any.

 Depreciation:-
Depreciation on fixed assets has been provisions on straight line method at rates prescribed in
schedule XIV to the company’s act1956. Depreciation on addition to fixed assets made during
the year is calculated on pro-rata basis from the month of the addition.

 Impairment of assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value.
An impairment loss is charger to profit and loss account in the year in which an asset is
identified as impaired. The impairment loss recognized in the previous accounting period is
reversed if there has been a change in the estimates of recoverable amount.

 Foreign exchange transaction:

I. Transactions dominated in foreign currencies are recorded at the exchange rates
prevailing on the date of transaction or that appropriate the actual rate at the date of
transaction.
II. Monetary items dominated in foreign currencies at the yearend are related at the
yearend rates.
III. Non-monetary foreign currency items are carried at cost.
IV. Any income or expenses on account of exchange difference either on settlement or an
translation is recognized in the profit and loss account except in case of long term
liabilities, where they relate to acquisition of fixed assets, in which case they are
adjusted to the carrying cost of such assets.
 Ion of inventories

Long term investments are carried at cost. Provision for diminution in the value of long term
investment is made only if such a decline is other than temporary.

 Retirement benefits:

The company’s contribution to provident fund and employee’s state insurance are debited to
profit and loss account. The company has made provision for gratuity in respect of
employee’s who have put in minimum five years of contribution service with the company
and the same is debited to the profit and loss account. Regarding leave encashment, there is
no policy for the payment of the same is debited to the profit and loss account. Regarding
 leave encashment, there is no policy for the payment of the same, and hence no provision is
made.

 Valuation of inventories:
a) Raw materials are valued at the cost of purchase including transportation expenses.
b) Finished goods are valued at the cost of production or realizable value whichever is
less
c) Work in progress is valued at the cost of production.
d) Scrapped rolls/moulds: as valued and certified by the managing director.
e) Stores and spares are valued at the cost of purchase.
f) Scrap is stated at estimated realizable value.
 Revenue recognition:

Revenue is recognized only when it can be reliably measured and it is reasonable to expect
ultimate collection. Revenue from operation includes sales of goods but excludes value
added tax, excise duty adjusted for discount (net). Interest income is recognized on time
proportion basis taking into account the amount outstanding and rate applicable.

 Excise duty/value added tax:

Excise duty is accounted on the basis of payment made in respect of goods cleared from the
factory.

 Borrowing cost:

Borrowing cost that is attributable to the acquisition or construction of qualifying asset is

capitalized as a part of the cost of such assets. A qualifying asset is one necessarily takes
substantial period of time to get ready for its indented use. All other borrowing cost is
charged to profit and loss account.

 Provision for current taxes and deferred tax:

Provision for current tax is made after taking into account consideration benefit admissible
under income tax, 1961. Deferred tax is recognized on timing difference; being the difference
 between taxable incomes and accounting income that originate in one period and are capable
in one or more subsequent periods.

 Segment reporting:

The company does not have any reportable business or geographical segments.

TYPES OF ASSETS AND LIABILITIES

ASSETS:

a) Share capital
b) Current assets
c) Fixed assets
d) Sundry debtors
e) Cash and bank balance

LIABILITIES:

a) Current liabilities and provisions

b) Loans and advances
c) Reserves and surplus
d) Sundry creditors

SOURCES OF FUND AND RESOURCES

 Sources of fund
 Share capital: 32500000
 Reserves and surplus:59477389
 Long-term fund:124613024
 Total:216590413

FRINGE BENEFITS GIVEN TO EMPLOYEES:

 Company car
 Accommodation or reimbursement of rental charges
  Medical bills reimbursement or free medical care for employees(extending for the family
as well as well and or children)
 Gift in cash or kind of festivals

INTERNAL RATE OF RETURN:

The internal rate of return offered by company is 13%.

HUMAN RESOURCE DEPARTMENT

Human resource department is the most important asset of every company. It is the backbone of
every organization. The success and failure of every company is depending upon its human
resource. It is a fact that the people are the main driving force behind any organization.

Employment of competent and specialized person at various levels is one of the important
reasons for the continuous success of GXMR. More over employment of women at certain key
areas of operations avoids reasonable labour problems to an extent.

The key factor in the growth of GXMR is mainly the good and healthy employer-employee
relationship. About 300 employees are working with one heart and institution, where 90%
comprises men workers.

STRUCTURE OF HUMAN RESOURCE DEPARTMENT

 BORD OF DIRECTORS

CORPORATE HEAD

SENIOR MANAGER

OFFICERS

OBJECTIVES

 Man power planning

 Recruitment
 Trading and development
 Induction
 Wages and salary
 Statutory compliance
 Leave administration grievances redressed
 Personal counseling
 Compensation and benefit
 Welfare
 Performance evaluation

According to the guidelines of ISO the managers and supervisors shall have enough knowledge
of principles and practices to be able to judge potential risks, take corrective action and ensure
that effective monitoring and supervision take place.

ACTIONS TAKEN
 A 16 hours training to every workers
 Induction to training
 Proper documentation of various activities and it is revision whenever needed
 The department is responsible for making all the personnel aware of their role and
responsibility in protecting food from contaminators

RECRUITMENT

Recruitment is the process of filling the vacancies. It is the first step in selection process.

In GXMR direct recruitment method is used frequently for recruitment. The firm places job
advertisement in Malayalam and English news paper and in TV, media and tries to attract as
much as calibre people from the outside.

The companies also have internal recruitment for filling the post by efficient and skilled workers
from the rank; promotion and Panchayath are preferred local candidate who belongs to
surroundings.

SELECTION

In GXMR the selection processes only through direct interviews.

TRANSFER

Employees are transferred to the different departments on the basis of their skills.

TRINING NEED ANALYSIS

GXMR STEELS are providing training and development to the employees. Each supervisor will
closely watch the requisite group of employees and they will report it top management. This is
the way how GXMR provides training to employees.

TRAINING TO THE EMPLOYEES

ON THE JOB TRAINING

A. Job instruction training(JIT)

The JIT method is four step instructional process involving preparation and performance try out
and follows up. It is used primarily teach workers how to do their current jobs. The four steps
followed in JIT method are:

 The trainee receives on interview of the job, its purpose and its desired outcomes with a
clear focus on the relevance of training.
 The trainer demonstrates the job in order to give the employees model to copy.
 Finally the employees do the job independence without supervision.
B. Coaching

Coaching is a kind of daily training and feedback given to employees by immediate supervision;
it involves continuous process of learning by doing. It may be defined as an informal, planned
training and development activity provided by supervisors and peers.

COACHING COULD BE PUT TO GOODS USED WHEN:

 When an employee’s demonstrates a new company.

 An employee expresses interest in a different job within the organization.
 An employee’s seeks feedback
 An employee expressing low morale, violating company policies or having performance is
problems.
 An employee needs help with a new skill following a formal training program.

Effective working obviously requires patience and communication skill it involves;

 Explaining appropriate ways of doing things.

 Making clear why actions were taken
 Stating observation accurately
 Offering possible alternatives
 Following up.
C. Mentoring

Mentoring is a relationship which senior manager in an organization assumes the responsibility

for grooming a junior person. Technical interpersonal and political skill is generally conveyed in
Such a relationship from the mare convenient in such a relationship from the more experienced
person. The main objective of mentoring is to help an employee attain psychological maturity
and effectiveness and get integrated with the organization. Formal mentoring can be very
fruitful, if management invests time and money in such relationship building exercise.

D. Job rotation:

This kind of training involves the movement of trainee from one job to another this helps him to
have a general understanding of how the organization functions .The purpose of job rotation is to
provide trainees with a larger organizational perspective and a greater understanding of different
functional areas as well as better sense of their own carrier objectives and intervals. Apart
relieving boredom, job rotation allows trainees to build rapport with a range of individuals with
the organizational, facilitating future co-operation among departments.

OFF THE JOB TRAINING

 Vestibule training

In this method the employees are trained in a separate part of the organization. Actual work
conditions are stimulated in a class room. Materials those are used in a job performance are also
used in the training.

 role playing

In role playing method involves human interaction, which is realistic behavior in imaginary
situations. This is mostly used for developing inter personal Lecture Interactions and relations.

 lecture method

It is a treatment and direct method of instruction. The instructor organizes the material and gives
it to a group of trainees in the form of a talk. To be effective the lecture must motivated and
create interest among trainee.

 conference and discussion

This method involves a group of people who pose ideas, examine and share facts, ideas and date,
test assumptions and draw conclusions all of which contribute to the improvement of the job
performance. The discussion involves two way communications and hence feedback is provided.

 programmed instruction

The subject matter to be learned is presented in aeries of carefully planned sequential units. This
trainee goes through these units by answering question or filling the blanks. This is expensive
and time consuming.

PERFORMANCE APPRAISEL SYSTEM

GXMR is following a special type of system of apprising the workers that is the key result area.
Here the performance of individual employees evaluated by his immediate supervisor officers.
The officers will evaluate the employee’s performance on the basis of result produced by them
and give report to the board for a particular period of time. If the bodies satisfied he/she will
forward it to the top level management by recommending on incentive or promotion.

MOTIVATIONL METHODS

The company is using various techniques to motivate its employees. Then only it can achieve
high productivity and high quality.

 Salary hike
 Bonus
 Incentives
 Allowances
 O.T facilities

WAGES AND SALARY

The workers are paid in two systems

Piece rate system

Under piece rate system of payment, wages are paid on time production goes up when wages are
paid according to piece rate system. This method of payment prevails on the packing section.
Salary system

This method of payment is applicable for rest of workers which also includes the loading and
unloading workers.

LOBOUR WELFARE FESILITIES

The company provides a lot of non-monetary benefits to their employees. Some of them are
as follows;

 transportation
Transportation provided to employees to differ destination at a subsidized rate.
 Canteen facilities

All employees are given free food at GXMR.

 personal protective equipment

Personal protective equipments like head wear, aprons and uniforms are provide to
the worker.
 Medical insurance
The employees are providing medical claim policy, which gives free medical
insurance to the employees and his or her family.
 Pension scheme
The scheme has been formulated for those employees who have retired from their job.
 Annual medical check-up
The employees are provided with free annual medical check-up facilities.

MARKETING DEPARTMENT

Marketing is the core of all management functions one of the important reasons behind the
success of the company is its marketing strategy compared to their rivals. The system followed
by eastern is very unique and it has been very effective. They deal with the whole slavers and
retailers directly at their door step with the help of around 100 vehicles going in as many
different routs covering the entire state.
 MARKETING DEPARTMENT CHART

SENIOR MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

SENIOR SALES EXCECUTIVE

SALES TEAM

FUNCTIONS

 Developing marketing strategy

 Capturing marketing insights
 Connecting with customers
 Building strong brand image
 Delivering value to customers

MARKETING STRATEGY

 Route sales
 Factory flesh outlet
 Intercompany sales
 Export sales

MARKETING TOOLS AND TECHNIQUE

Product profile:

The company now manufactures CTD bars(cold twisted deformed) of;

  5mm
 6mm

The cold twisted deformed process gives medium strength to the bar. A CTD bar is produced by
cold twisted performed process and STEEL bars (thermo mechanically treated) of

 8mm
 10mm
 12mm

The thermo mechanically treated process impair high strength to the bar using the latest
technique using STEEL. STEEL is produced by thermo mechanically treated process and not by
cold twisting, therefore there is no corrosion residual stresses in the bar, which result in,
corrosion resistance characteristics.

 Earthquake resistance
 Heat resistance
 Corrosion resistance

The sales executive for each route gives order to be dispatched to each sales depot. He also takes
care of the billing and cash transaction. After making sale, a sale invoice is made the summary is
given to the cash department. The sale assistant places the order to different shops. After delivery
of goods, the vans return verifying the order form, the stock is checked. The accents are
maintained on weekly basis. The company has round 40 retailers. Mainly cash transactions are
undertaken and credit facility is entitled to only 8 parties.

On every Monday following the production week, the products are distributed from the groups
sales depot to every retailer by company’s own vehicles. The advertisement through these
vehicles has no additional cost. There a number of vehicles carrying steels distributing the
various products across the state. To gives maximum publicity and advertisement to company
and the brand.

PRODUCTS SELLING PROCESS

 RECIEVING THE ORDER FROM CUSTOMERS
EITHER BY DIRECT VISIT/OVER
PHONE/POSTAL REQUEST/MALE

ENTER THE ORDER TO SCHEDULES ENTRY

AND MONITORING FORM

VERIFYING THE FEASIBILITY AND

AVAILABILITY OF GOODS IN STOCK YARD

SALES ACTIVITY TO BE CARRIED OUT BY

DISPATCH DEPARTMENT

CUSTOMER SATISFACTION

SALESPROMOTIONAL ACTIVITIES

The main sales promotional activities of GXMR are advertisement. The advertisement of the
company creates awareness about the standard and the quality product. Hence the ISO 9001-
2008 certified standard convince the end users in this way.

The sales promotional activities are effective. The services of the company were spontaneous
and reliable, so that the discounts given by the company are good to create a purchasing power to
the customers.

Being ISO 2008 standard company customers prefers this product rather than other company’s
products. So the GXMR STEELS got a major market share all around Tamilnadu.

PRODUCT PUBLICITY

Product publicity is mainly done through advertisement. And high quality products sold by
GXMR leads to a higher product publicity among the public.

TARGET ACHIEVEMENT METHOD

The GXMR steels will fix certain level of targets to each sale executive. And all are suppose to
achieve their target. By this way GXMR is achieving their sales target.
 CUSTOMERS BENEFICIAL AND SATISFACTION IDENTIFICATION METHODS

Sales manager had assigned a customer satisfaction identification duty to the sales executives. So
the customers are directly enquired and they are directly analyzed to check the satisfaction.

IDENTIFICATION OF CUSTOMER EXPECTATION

As the company is only producing CTD and STEEL steel bars, the company is not taking any
actions to find the customer expectation. Because the company is not intended to expand their
production to any extend. Because now also the company can fulfil 80% of products demand.

CUST0MER FULFILMENT AND SERVICE

The major customers of GXMR are STEEL and AP steels. The company is more concentrating
on high quality certified products. The company is delivering the products at right place. So the
customers are completely satisfied when they get high quality products at right time when they
needed.

CUSTOMER ORDERS RECEIVE AND FULFILMENT

Receiving order from customer Receiving enquiry by marketing

rervisit or over phone
either by direct executive / existing customer / through
or postal request telephone / working etc

Either the order to schedule entry

and monitoring form
Entries to the enquiry register and
review the feasibility

Verifying the feasibility and

availability of goods in stockyard

Preparation of quotation based on

the managing directors’ advice

Sales activity to be carried out by

dispatch department

Quotation handover / deliver by

Customer satisfaction action if post or through mail
needed
METHODS FOR OVERCOMING COMPETITORS

 High quality products

 Proper delivery of goods and services
 After sales service
 Employee- employer relationship

CUSTOMER RETAIN MANAGEMENT

GXMR well concentrating on retaining the customers. Because they know customers are the
backbone of every organization. They are taking necessary steps for that such as:-

 High quality products

 Proper delivery of goods and services
 After sales services

CUSTOMER RELATIONSHIP MANAGEMENT

Customer relationship management (CRM) is broadly recognized widely implemented strategy

for managing and nurturing a company’s interactions with customers, and synchronizes business
process principally sales activities, but also those for marketing, customer service, and technical
support.

The overall goals are to find,

o Attract and win new clients

o Nature and retain those the company already has,
o Entice former clients back in to the fold, and
o Reduce the cost of marketing and client service
Customer relationship management denotes a company-wide business strategy embracing all
client-facing departments and even beyond.

SYTEM DEPARTMENT

INFORMATION TECHNOLOGY DEPARTMENT

BOARD OF DIRECTORS

IT MANAGERS

SENIOR OFFICER

OFFICERS

Artificial intelligence is necessary for the development of mankind. Today the term
terminology has ballooned many aspects of computing and technology, and the term is
recognizable than ever before. The information technology umbrella can be quite large
covering many fields. IT professionals perform a verity of duties that are range from
installing applications to designing complex computer networks and information databases.

DUTIES THAT OFFITIALS PERFORM IN ITS DEPARTMENT INCLUDE:-

Data management, Computer engineering, Databases design, Software design, Management
of information systems, Systems management or System administration.

OBJECTIVES:-

 Ensure the protection and security of data

 Minimize duplication of effort, services and resources
 Eliminate insufficient and costly redundancies
 Eliminate non-compatible standards and architectures
 Identify obstacles for departments wanting to move computing operations to the
divisions of information technology and solve it immediately.

The whole organization is computerized. All the departments are connected via network.
GXMR uses oracle based software called ORION, which has been customized to suit the
needs of this particular organization. The networking is done through a BSNL lease line.

The company has a good IT team for implementing the ERP (Enterprise Resource
Planning) which has started in the year 2001 and was centralized in the year 2005. ERP
enables fast transaction and is systematic in all its functions. ERP also helps in decision
making. The package used in Orion 7.4 and Orion 10.x (centralized database). The package
is provided by Info Tech (Technologies) Chennai.

The main advantage of using it in an organization is to make information readily

available. So in GXMR also information is readily available and this makes decision making
much faster and accurate.

SOFTWARE CONFIGURATIONS

 ESSL(personal attendance monitoring system)

 Microsoft office
 Tally 9

Centralized software:-

 ERP-Orion fronted developer backend-oracle developed by ICICI info tech

  Accounts department –ECPL software developed by GXMR –it is used to make a
payment request
 Home developed software is fuel management software
 It is used in workshop of GXMR pump management.

Antivirus:- MS fore friend (identification of error)

Full centralized scanning from the corporate office.

 HARDWARE CONFIGURATION
 RAM 512MB AND ABOVE
 HD 80GB AND ABOVE
 INTEL CORE 2DUO PROCESSOR AND ABOVE
 PROCESSOR SPEED:3.2 GHZ
 16” LED MONITOR
 All accessories are of by HP

COMPUTERISED ACCOUNTING

All the accounts are computerized, when we switch over to computerized accounting for first
time. We should create all ledgers and enter opening balances and classify at this stage. Just
enter all the transaction in vouchers, click the journalisation, position to ledger, and
preparation to trial balance, financial statement etc is done by the company.

FEATURES OF THE SYSTEM

The system is protected from the attack of viruses using advanced anti-virus program. All
systems are interconnected with each other by a server.

PROS AND CONS OF THE SYSTEM

System has more advantages compared with disadvantages.

 Works in stipulated time with precision

 All the computers are inter-connected
 The staff don’t want to rush out from office or systems to system CONS
  There is a chance of problems which results in the loss of data
 Virus attack will destroy data
 Hacking of the data of the company.

CHAPTER IV

SWOT ANALYSIS

Professional mangers, while resorting to management by objectives, resort to SWOT Analysis as

a tool for assessment. Such an analysis on GXMR will mean a study of strength, weakness,
opportunity and threat faced by GXMR as on today.

STRENGTHS

 GXMR is the only public sector forging company in India. Most customers are also from
the public sector.
 Availability of heavy hammers which are few in the country and hence comparatively
lesser competition in an otherwise very competitive market for forgings.
 There is sufficient owned land available adjacent to the existing factory premises for
expansion.
 Skilled and contented workforce committed to quality and timely delivery.
 Better employer employee relationship.
 ISO 9001 certification and facility approved for defense and aerospace production.
 GXMR has developed and trained various units in and around to do machining jobs
suiting to the quality standards. These units therefore form an effective backup for
GXMR, meeting the entire range of forging requirements.

WEAKNESSES

 High transportation cost of goods and personnel due to the distance from raw material
 Suppliers and customers which are mostly outside the state.
 Over consumption of power and fuel.
 Man power shortage in production area.
  Unexpected power failure and restrictions in usage Electric Power.

OPPORTUNITIES

 GXMR has the opportunity to enter the international market because of quality forgings.
 Liberalization and globalization has opened up new export markets.
 The demands for forging products are increasing. So there are chances of getting more
orders.

THREATS

 Unexpected power failure and restrictions in usage of Electric Power.

 Long distance from the main input sources and major customers causes increase in the
 Transportation expenses.
 Financial strain on the company due to fast increasing input costs, and the necessity felt
to organize large stocks of raw materials.
 Emergence of private companies into this industry.

TRAINING MIGHT INCLUDE THE FOLLOWING:

BUSINESS OPERATIONS/ORIENTATION

 Business’s products/services
 Who are the consumers?
 Goals of organization, mission statement, philosophy
 How the student’s role contributes to organization
 Roles of other employees; who supports who
 Provide directory with names and extensions

ADMINISTRATIVE POLICIES

 Business hours, break and lunch times

 Staff meetings (important to include students)
 Alert key personnel that students are in dual roles as trainee and employee
  Encourage regular employees to share expertise
 Assign site supervisor as student’s mentor
 Resource binder with routine information, organizational structure
 Information on parking, restrooms, supplies, meeting rooms, etc. ·
 To whom will the intern report? Will the intern work with one department or several?

EMPLOYER ROLE ·

 Provide the student with leadership experiences and opportunities to make decisions
 Treat students as assets with fulltime potential
 Return the student to campus as an ambassador for your company
 Maintain professionalism in your relationships with students, and expect
professionalism in return
 Represent your positions accurately and follow through with supervision and guidance
 Never ask students to participate in any activities that are unethical, illegal, or unsafe

PERFORMANCE EXPECTATIONS

 Provide a clear job/project description for the work experience

 Define expectations of job and related tasks
 Provide frequent, informal feedback on a job well-done
 Clearly identify inconsistencies of performance; make suggestions for
improvement · Conduct an informal midterm review
 Conduct a final performance review before student leaves assignment

CHAPTER V

EVALUATIONS AND SUGGESTIONS AND LEARNING EXPERIENCE

AND CONCLUSION

FINDING
In this industry, I proposed to conclude the study report by highlighting important findings of the
study. The important findings has led to some suggestions for improving the profitability of the
concern

 As a government company GXMR enjoys the leadership status in the market.

 It produces high level quality steel and negligible number of defective products.
 Company makes arrangements to avoid overcrowding in the production unit near the
machine.
 GXMR is paving the seeds of changes in its way. Stability in its production is production
is possible now in GXMR.
 Due to liberalization the company need not suffer to import the raw material necessary
for production.
 The main strategy of GXMR is aiming at gaining a sustainable advantage over
competition through quality and reduced price.
 GXMR trying to improve its position m the mind of the customers by following up and
attending any complaints.
 Proper time keeping system is there in GXMR.
 GXMR is strict in quality of products and quality checking can be done through modern
technique of spectroscopy.
 There is proper control and coordination in the company.
 The company has facilities such as canteen, rest room etc
 The company appointing general helpers to help different department.
 Water and power is supplied for whole day.
 There is a sales depot to sell the steel.
 The government checks the product quality
 There are several weak spots like sales promotion measures presently undertaken by the
company. It includes lack of advertisement support. That effect marketing efforts of the
company negatively.

SUGGESTIONS
  GXMR should continue in efforts to collect as much scrap as possible for all indigenous
sources, as well as outside sources. Constant efforts are required in this direction.
 Proper planning in getting all other raw materials, re-factories and spares to maintain
regular production at the top most level possible.
 Gear up the sales activities in the best possible manner-keeping the watch always whether
at anytime billet sale is going to prove better than sale of rolled products. Although many
times we find that rolled products sale is beneficial to the company, market fluctuations
at time change the position very much, making billet sale itself as beneficial. This
problem can be to a certain extend neutralized by having our own rolling mills.
 Installing a generator plant to take care of at least 30-40% of our energy requirements, so
that in the future years when monsoon fails, the power cuts may be squarely met.
 Employees should understand company's problems, which periodically come and
cooperate to achieve the best efficiency in all operations.
 Cost consciousness in all operations should be deeply inculcated in all the employee’s
minds.
 With better operations and profitability it should also be possible for us to go in for
sponge iron plant our self.
 As the product has achieved quality as well as cost competitiveness when compared with
other competing brands, there is a scope for improvements in promotional measures for
expanding the market share for its products and in this regard include the following:
 Various types of incentives must be allowable to the sellers on the basis of sales revenue
in order to increase the order
 Quantity and grade based differential pricing can be adopted to induce users to buy more
 Aggressive advertisement GXMR aligns using print as well as electronic media can be
used to further increase the brand of the product. This will support any market
penetration strategy.

LEARNING EXPERIENCE

The Organization Study at Steel and Industrial Forgings Limited has enhanced my knowledge
with corporate and provided exposure and practicability of subject in the industry. It gave me an
understanding as to how an organization operates and an idea as to how the hierarchical structure
of an organization is and helped me understand the chain of command and authority. The study
was a significant endeavour in analyzing overall functions of various departments within the
organization. Importance of leadership traits which guide in achieving personal as well as
organizational goals could be identified. This study has improved my confidence by its
successful completion to undertake such studies in the future. I must confess that this experience
is an eye opener.

CONCLUSION

The company is envisaged to have a profitable future. Its past history showing no strikes
and high product quality reassures its graph of growth pointing upwards. The sincere and
dedicated team of human resource strives to lead the company to success. As long as the
company caters to the continuously changing needs of its customers, its future seems to be
bright. The study was conducted with a view to understand the functions of GXMR and its
department. During the course of study I could familiarize with the organization and its
environment. This study has improved my confidence by its successful completion to undertake
such studies in the future. Organization study has given a great chance to be a part of the industry
and to understand the overall working and functioning of different departments. It is sure that
Steel &GXMR; Industrial Forgings Limited will become a dominant part of market share.

REFERENCES

o Kotler Philip, “Marketing Management”, Pearson Education, 11 th Edition

o GXMR Department Manuals
o GXMR 27 th Annual Report and Accounts 2009-2010
o GXMR 28 th Annual Report and Accounts 2010-2011

WEBSITES

o www.economywatch.com/world-industries/steeel/indian.html, 13 th May 2012

o www.worldsteel.org, 14 th May 2012
o www.google.com
o www.wikipedia.com