CHAPTER 1INTRODUCTION INSTITUTE OF MANAGEMENT IN KERALA - ALAPPUZHA 1 INTRODUCTION As a part of our MBA curriculum, organization study is the area where our theoretical knowledge under study with an organization to find out its overall working, learn about origin, growth and development of the company, understand and analyses about the quality policy of the organization and the role of each department in the organization dealing industrial products and also of the working culture of the executive and the workers. The organization study at Keltron Component Complex Limited (KCCL), Kannur has provided me with information of various aspects and has been a valuable help and assistance to me. Keltron is India’s first and the largest electronics corporation in the State sector. Keltron has been a catalyst in making electronics work in almost every aspect of our daily life, since 1973. It is India's leading capacitor manufacturing company. It offers the widest range of capacitors covering various types of aluminum electrolytic capacitors, AC motor start capacitors, motor run capacitors and power factor correction (PFC) capacitors. The main objective of the study was to get the overall idea about the functions of an organization. This report provides details about the different departments and functions of the organization. INSTITUTE OF MANAGEMENT IN KERALA - ALAPPUZHA 2 OBJECTIVES OF THE STUDY To study the organizational structure of the company To understand the functions of various departments To gain practical knowledge about the functioning of various departments of the organization To understand the strength and weakness of the organization To understand the external environment of the organization METHODOLOGY The “Organization study’’ at KELTRON is based on a descriptive study. The data collections were both from primary and secondary sources. PRIMARY DATA SOURCES; Interview with managers, office staff and workers Informal talk with employees and observations SECONDARY DATA SOURCES; Data collected from annual reports, departmental report and catalogues etc. Data collected from company website and Wikipedia Data collected from books SCOPE OF THE STUDY The study is intended provide managerial insight to a management student. If will enable him to take up responsibilities of a manager at ease and provide him more confidence. The scope of the study is confined to a few selected departments and their functions. The trainee may also get a feel about how business executives operate in their work settings. INSTITUTE OF MANAGEMENT IN KERALA - ALAPPUZHA 3 LIMITATIONS OF THE STUDY The limited time frame of two weeks in conducting study is the major constraint. More talks with the Top officials of the company were not possible due to their busy schedule. The conclusions and the inference are drawn only on the basis of the report, received from the interviews and it may be colored by personal bias. CHAPTERISATION Chapter 1: deals with the introduction of the study. This chapter highlights the objectives, scope and the limitations of the study Chapter 2: deals with industry profile Chapter 3: deals with company profile. The company details includes company history, product portfolio, prospective customers, competitors, organization structure etc Chapter 4: lays down the various departments and its functions. Chapter 5: deals with the SWOT and PORTER’S analysis. Chapter 6: concludes the report with findings, suggestions and conclusion. INSTITUTE OF MANAGEMENT IN KERALA - ALAPPUZHA 4 CHAPTER 2 INDUSTRY PROFILE INSTITUTE OF MANAGEMENT IN KERALA .ALAPPUZHA 5 . it is a charge storage device which consists of two conducting plates separated by an insulator called dielectric. Polycarbonate. A capacitor is expressed in terms of its capacitance. Aluminium Electrolytic.). Aluminium Electrolytic Capacitors are being used extensively for consumer electronic goods all over the world. and others. While most other types of capacitors are bi-polar in nature (any polarity voltage can be connected to either of the plates) a good majority of AECs are polar. Like any other type of capacitor the Aluminium Electrolytic Capacitors (AECs) too have two plates separated with a dielectric. Bismuth and Antimony are readily coated with a film of dielectric by electrolytic "forming process". Polypropylene. A Capacitor is identified by the type of dielectric or plate material used on it. in MF (micro-farads) and its working voltage in Volts (V).ALAPPUZHA 6 . Mica. Ceramic. Other parameters which specify its quality are Leakage Current. Tantalum. Metals like Aluminium. The method of making film is by making anodic oxidation. The large capacitance in ECs arises from very thin film of dielectric used of the order of 10-6 cm. plastic film (such as Polystyrene. INDUSTRY PROFILE INTRODUCTION ALUMINIUM ELECTROLYTE CAPACITORS Electrolytic capacitors are passive electronic components whose basic function is to store energy. Magnesium. etc. Tantalum. The forming process consists of the deposition of INSTITUTE OF MANAGEMENT IN KERALA . Fundamentally. A variety of capacitors are in use in electronic and electrical circuits. Dissipation Factor (also referred to as Loss Factor). Vanadium. Some of the most common capacitors which find widespread application in electronics as well as electrical industries are paper. The outstanding advantage of electrolytic capacitors is the large capacitance/volume ratio. Railways. a thin film of Aluminium Oxide on the surface of the plate. Electrolytic INSTITUTE OF MANAGEMENT IN KERALA . cement. electronics--almost all the sectors make use of them.ALAPPUZHA 7 .the cathode foil Table: 2. steel. For instance. coolers. As the electrolyte is a paste it is able to make contact with the whole of the thin oxide film that is formed on this undulating surface. motors.1 The etched foil type is similar in construction to the plain foil type but the anode foil is mildly acid etched before forming with a consequent increase in the anode surface area. It is essential to control the etching process closely so that 'thin’ spots are not left on the foil and also to ensure that no acid is left which might contaminate the foil. Although the capacitors have common function of storing the electrons/energy. Aluminium foil enters in the tank of electrolyte with a constant voltage applied and passes through the tank until the required thickness of film is produced The essential parts of electrolytic capacitors and their functions are:- PARTS FUNCTIONS Aluminium foil Positive or anode Oxide film Dielectric Electrolyte Negative or true cathode (Usually a paste of glycol and ammonium tetra borate) Spacers Necessary to separate the cathode and anode film from direct contact A second Aluminium Contact electrode to the electrolyte . it is used in almost all the sectors of the economy. automotive. The increase in surface area results in a considerable increase in the capacitance obtainable. power. refrigerators. capacitors are used in various appliances like air-conditioners. New projects across different sectors will have direct impact on the demand of the capacitors. pumps and fans. New projects across different sectors will have direct impact on the demand of the capacitors.ALAPPUZHA 8 . communication equipments and industrial applications. pricing is once again expected to come under pressure. PA equipment. with additional capacity coming on stream combined with the potential build up of inventories. GLOBAL SCENARIO: ‘Faster. Demand is also directly related on demand for consumer durables like refrigerators and air conditioners. The market is expected to experience a period of stronger growth in 2009. TV (Black & White. defence computer. However. Consumers are buying goods at a faster rate than the past. Thus we can see number of novel and modified products in the market today. More the new projects more will be the demand for capacitors. Electronic industry now follows the slogan ‘Innovate or Perish’. The basic technology for the manufacture of Aluminium Electrolytic Capacitors has changed a little since the first high performance AECs using formed and Etched Aluminium Foil was developed in late 1930's. tape-recorders. Thus capacitors have universal application and in some form or the other it is used by both households as well as industries. The recovery gained momentum in the first half of 2004 fuelled by strong demand and firmer pricing. However. After the record year in 2000 the global capacitor market declined in both 2001 and 2002 and it was not until the second half of 2003 that the market started to show signs of a sustained recovery. This resulted in a slowing market in 2005 and into the first half of 2006. Colour). capacitors are mainly used in radio receiver. especially with the advent of modern equipment utilizing integrated circuit and with the demand imposed by improved and INSTITUTE OF MANAGEMENT IN KERALA . Better and Cheaper’ is the slogan that drives today’s electronic industry. Hi-fi system. over the years. (Japan) itano Enterprise Corp. consistent performance over extended period of time. (Taiwan) Haimen Sancon Jetwell Electronics Co. (USA) Nippon Chemi-Con (Japan) Panasonic Corporation (Japan) Sanyo Electronic Device Company (Japan) The end-use markets of aluminium electrolytic capacitors are: Consumer Electronics Computers and Peripherals Telecommunications Industrial Applications Inverters General-Use Inverters Inverter Air Conditioners Other Inverters INSTITUTE OF MANAGEMENT IN KERALA . substantial adaption and process improvement have been made. Inc.. (Japan) Epcos AG (Germany) Guangdong Fenghua Advanced Technology (Holding) Co. Ltd. Ltd. Inc. Ltd. (Taiwan) Nichicon Corp.ALAPPUZHA 9 . (China) Illinois Capacitor. Inc. (Canada) Elna Co. (USA) Cornell Dubilier Electronics. The major global players in electrolytic capacitors are: Barker Microfarads. Inc. (China) Hitachi AIC. (USA) Jacktronics Electronics Company (China) Arcotronics Group (Italy) Evox Rifa Group Oyj (Finland) Lelon Electronics Corp. (Japan) NIC Components Corp. (USA) DuraCap International Inc. high-voltage capacitor banks to the basic components. considered to be one of the Asian dark horses. and social policies adopted by the Chinese government have provided a tremendous boost and encouragement to the Chinese manufacturers and entrepreneurs. The production of ceramic capacitors is 40 billion. This aspect enables Chinese capacitors to be price-competitive in the export market and the valuable foreign exchange earner. Varieties of capacitor manufactured range from the most advanced surface-mount ceramic chip capacitors. The technology and size of the manufacturing machinery deployed in these plants ranged from state-of-the-art high-volume version operating in clean-room environments down to the simple manual machines functioning in unprotected environments. ASIAN MARKET TREND: Chinese Capacitor Saga and a comparison with India China. This offers a unique advantage in the setting up of modern large-scale plants. The number of factories is more than 500. Capacitor unit sizes range from universal-scale. electrolytic capacitors 25 billion.ALAPPUZHA 10 . The technological. This drive has positioned China. unknown and unheralded a decade ago. All the large-sized capacitor factories are government-owned or joint ventures with government companies. The large-scale units are 25. The leading Asian producers of Aluminium Electrolytic Capacitors are as follows: China Japan Andex Nippon Chemicon Matsushita Precision Nichicon Bennic Components Shin EL Tsushin Kogyo Hitachi Condenser INSTITUTE OF MANAGEMENT IN KERALA . Rest of the production is exported on marginal-cost basis. These plants can obtain their basic loads from the domestic market. on the world capacitor map China has the capacity and technical know-how to produce capacitors of all types. highly automated. and development policies have encouraged leading multinationals in the field to set up development and manufacturing facilities in conjunction with the local Chinese players. Supportive import. economic. and plastic film capacitors 15 billion. has made an astounding progress in the capacitor industry. high-volume (mass production) plants down to small garage operations of the small-scale entrepreneurs. A large and growing demand for capacitors exists from all sectors in China. economical. Most of the capacitor production and usage aspects are directly or indirectly government-controlled companies. All the major user industries like automobile. Domestic manufacturers complain about the aberration in duty structure which is hampering the growth. cement and steel were adversely affected (especially in the third quarter of 2008-2009 fiscal) and also the demand for the consumer durables like air-conditioners and refrigerators moved southwards. However. As a result capacitors market encountered sluggish demand. many well-known manufacturers have reduced the prices of their products. demand for capacitors too has adversely affected. Like any other electrical equipment market. According to a Market survey the annual requirement of all kinds of capacitors in India has been estimated at 1500 million pieces.ALAPPUZHA 11 . Bonnex Enterprises South Korea Taiwan Samhwa Elec/Nichicon Korea Kaimei Electronic Daewoo Yeong Long Korea Elna Matsushita Taiwan Samsung Dongsung INDIAN SCENARIO: The size of Indian market for capacitors is estimated to be around Rs 1000crore. Indian capacitor industry is dependent on imports for some of its raw materials. capacitor market is also characterized by the co-existence of both organized and unorganized players.000 capacitor players operating in the country. During the last few years capacitors market has posted a healthy growth of 10 percent annually. To cope up with the slackness in demand. . INSTITUTE OF MANAGEMENT IN KERALA . Due to economic recession and subsequent global meltdown. it is more fragmented with around 25. CHAPTER 3 COMPANY PROFILE INSTITUTE OF MANAGEMENT IN KERALA .ALAPPUZHA 12 . 00. Keltron had set up a production centre in every district of the State. read “spearheading an electronics revolution in Kerala”. Keltron is India’s first and the largest electronics corporation in the State sector. Within five years of its inception. Keltron today is fully geared to offer high quality integrated manufacturing solutions. More than 5.000 people were engaged directly or indirectly by Keltron for the manufacture of electronic goods. and software development tools for embedded systems. The company is under the direct control of the State government of Kerala. It is headquartered at the capital city of Kerala. Kathakali and the Onam boat races. to an arena for industrial and technological development. The registered name of the company is Kerala State Electronics Development Corporation Limited (KSEDC). A strong infrastructure. That was how Keltron was born. innovative operational methods. Keltron has built up a strong infrastructure spread over 7. accent on quality and customer-orientation are the core competencies of the organization which has INSTITUTE OF MANAGEMENT IN KERALA . Kerala State Electronics Development Corporation Limited. is a public sector Electronics Company located in Kerala. COMPANY PROFILE ABOUT KELTRON: Keltron. natural beauty. It was an experiment by Government of Kerala to transform the laid-back. Thiruvananthapuram.000 sq ft of built-up area. Equipped with computer-based facility for system design & engineering. The name KELTRON was coined from two words. Kerala Electronics and when it was necessary to use a small word in Telegrams referring to the company.launching their own electronics corporations. Keltron has been a catalyst in making electronics work in almost every aspect of our daily life. enterprising team of people. The tag line launching a State-owned electronics enterprise. since 1973. more than a quarter century ago. Over the years. The model of a State-owned electronics corporation was so successful that several other States in India followed suit . picturesque Kerala State known for its spices.ALAPPUZHA 13 . The manufacturing centers at Trivandrum . Keltron has an All India Sales Network in place with full-fledged Marketing Offices in Mumbai. project managers and a skilled workforce with a proven track record in complex precision manufacturing. Hyderabad. . high-tech manufacturing operations and in managing turn-key projects. Kolkata. Aroor (Near Cochin). ESD-control measures have been strictly adopted at the specified areas. In order to meet the stringent quality requirements of ISRO. Keltron’s expertise in high quality manufacturing is the direct result of the highly skilled. INSTITUTE OF MANAGEMENT IN KERALA . Currently. Bangalore. Access to top level technology support. Delhi. harnessing and QC. The manufacturing plants for Capacitors. and collaborators like Hitachi. Inspectorate of Naval Armament (SINA-T). has implemented their customized quality systems at Keltron Equipment Complex. Crystals & Resistors have been granted LCSO approval. Chennai. Commitment to quality. Keltron’s capabilities lie in the following distinct areas: Availability of large pool of experienced technical manpower. Each facility has a Quality Department whose business is to see that all quality norms are strictly adhered to in the manufacturing process. Keltron also provides technical manpower to major organizations like ONGC and VSSC. made things happen all these years. Keltron employs a work force of 2000 of which 400 are Engineers who possess extensive hands-on experience in technology integration and adoption. Kannur and Kuttipuram (In Malappuram) are ISO9001:2000 certified. Trivandrum.ALAPPUZHA 14 . Ahmedabad and Trivandrum to provide the quickest possible service to customers. Man power at Space Electronics section has been specially trained at Indian Space Research Organization (ISRO) in high-reliability soldering. Ensuring quality is a continuous on-going process at all production units. multi-disciplinary team of graduate engineers. Japan. Strong infrastructure and manufacturing experience. IT Training. Carbon/Metal film Resistors. employees identity cards Power Electronics Systems – High-frequency IGBT converters. Industrial Battery Chargers. It is a public limited company established for the manufacture of Aluminium INSTITUTE OF MANAGEMENT IN KERALA . Metallised Plastic film Capacitors. (KCCL) Keltron Component Complex Limited (KCCL) is a Government of Kerala undertaking promoted by Kerala State Electronic Development Corporation (KSEDC) and founded by Mr. Support services Process Automation Systems ID Card Project – Electoral photo identity card. The products of KELTRON consist of a diversified field like: Aerospace Electronics Security Surveillance Systems like CCTV systems. security electronic products Intelligent Transportation Systems Strategic Electronic products for Defence and Space departments Information Technology Solutions like Intranet and Inter-office Communication solutions. It offers the widest range of capacitors covering various types of aluminium electrolytic capacitors. NTC Thermostats KELTRON COMPONENT COMPLEX LTD. Keltron Component Complex Limited (KCCL) was incorporated on 8th October 1974 as an associated company of Kerala State Electronic Development Corporation Limited (KSEDC). Ceramic Disc Capacitors. KCCL’s headquarters is situated at Trivandrum. Motor Start Capacitors. It is India's leading capacitor manufacturing company. Attendance/Access control systems. Web application development. Keltron Component Complex Ltd is located at Keltron Nagar. and a factory area of 9150 square meter.P. 15 km from Kannur in Kerala.100 square meter. Rectifiers. motor run capacitors and power factor correction (PFC) capacitors. AC & DC distribution boards Electronic Components – Aluminium Electrolytic Capacitors. Bar coded cards. Transducers. Website hosting.P Nambiar. High Capacity Voltage Stabilizers. AC motor start capacitors. SMART Cards.ALAPPUZHA 15 . Piezoelectric Quartz Crystals. K. The company has a land area of 44. Touch screen Kiosks. It started its operation in the year 1976. Keltron Component Complex Limited markets its products under the brand name KELTRON of its parent Company. To continue to play the role of nodal agency of government for accelerating the growth of development of this core industry in this state. The expansion of capacitor plant was undertaken in a phased manner to 55 million pieces by 1984-1985 and 150 million pieces by 1990-1991. It has the capability to produce all types of Aluminium Electrolytic Capacitors which conform to national and international standards. To build up Keltron as a model PSU in the sunrise Technology Sector of Electronics and IT. INSTITUTE OF MANAGEMENT IN KERALA .ALAPPUZHA 16 . The production increased to 145 million pieces in 1999- 2000. USA. which was a subsidiary of Sprague Electric Co. The Company's Quality system has been conferred with the ISO 9001 accreditation by M/s KPMG MISSION “The company aims at maximum satisfaction of the customers by providing goods which meets the requirements. profit orientation and professional outlook. of India. To function as a backbone of electronic industry in the state. A plant for the manufacture of 18 million pieces of Aluminium Electrolytic Capacitor was established in collaboration with M/S N. The manufacturing technology is constantly upgraded by R&D Centre of the Company which has the recognition of the Department of Scientific & Industrial Research. Ministry of Science & Technology. And they are committed to achieve goal with the involvement of employer at all levels” VISION Keltron’s corporate vision as the company enters the 21st century is To emerge as a strong and self reliant business enterprise with customer focus. Electrolytic Capacitors of KSEDC on 28th August 1986. Taiwan and Europe. It has a state of the art manufacturing facility with sophisticated automatic machines from Japan.V Sprague Electromag Belgium. The company went into commercial production in August 1978. Govt. PROSPECTIVE CUSTOMERS. Telephone instruments. EPT rubber. Samsung. Aluminium wire CP Wire (Copper plated) and Plain aluminium foil. BPL. Radio. ITI. C- DOT. With the onset of liberalization of economy and bringing capacitors under OGL the company has to compete with international brands like Rubycon. Panasonic. Condenser paper. Disc covers. Nichicon.ALAPPUZHA 17 . Defence equipments etc. craft and Manila Hemp and Duplex Aluminium cans Lead tabs. Elnet etc. high purity and high temperature. PVC heat shrinkable sleeve. Tape Recorders. The present customers include major Indian manufactures like BEL. Incap. CROMPTON CREAVES. The Electrolytic Capacitors are widely used in TV sets. SHARP INDIA. TATA TELECOM. The main raw materials used for manufacturing AEC's are: Etched aluminium foils 30 to 60 microns thick Formed aluminium foils and anodised etched aluminium foils 50 to 90 microns thick. HCL. ONIDA. COMPETITORS. The major competitors in India for Electrolytic Capacitors are Punssumi India Ltd. Communication equipments. Uptron. RAW MATERIALS. Electronic exchanges. Philips. BPL TELECOM. EPDM. INDIAN AIRPORT AUTHORITY etc. VIDEOCON. INSTITUTE OF MANAGEMENT IN KERALA . Elna etc. Webelson. Electrolytes Rubber bungs. Adhesive tape. ECIL. TEXLA. ALAPPUZHA 18 . Government of India. have approved the in-house Research and Development activities of the Company. The original machinery for manufacturing 18 million pieces per annum of capacitors was sourced from M/S NV Sprague Electromag Belgium. sufficient stock of spare parts are sourced and stored from the suppliers for fabrication of spare parts. Taiwan.100 Sq.. The engineers and technicians trained in Japan and Taiwan on the machines oversee the repair activities. Automatic machines : 100 Nos INSTITUTE OF MANAGEMENT IN KERALA . M/S CKD Corporation. Belgium. The company also updated the technology by obtaining information from suppliers on the latest developments taking place in Japan.m Factory Area : 9150 Sq.m Connected Load / Captive power : 2300 KVA / 1000KVA No. manufacturing and testing from its collaborators M/S NV Sprague Electromag. development. Japan and M/S Dons Enterprises. Subsequently. The company acquired the technology for the design. TECHNOLOGY AND IN-HOUSE R&D. The Department of Scientific and Industrial Research. Japan. The manufacturing process was mainly semi-automatic and manual in nature which was subsequently upgraded by the company by sourcing state of the art automatic machinery from Japan and Taiwan during the expansions was undertaken. Land Area : 44. PLANT & MACHINERY. INFRASTRUCTURE. Ministry of Science and Technology. Korea and Taiwan on compactness and high temperature categories of capacitors with its in-house R & D effects. and tools room facility is also available. Technicians are provided on the job training. for the expansion project the company sourced automatic state of the art machinery from M/S JCC Engineering co. 000 and 2. QUALITY POLICY. 1.500. The Company was promoted to manufacture Carbon Film Resistors and Metal Film Resistors. The company aims at maximum satisfaction to their customers by providing goods that meet their requirements. Kannur District was incorporated on 29 April 75 as a subsidiary of Kerala State Electronics Development Corporation Ltd (KELTRON). AWARDS & RECOGNITIONS. USA. 0. New Delhi. Kerala State Electronics Development Corporation Ltd (KELTRON).000 per annum. only Electrolytic Capacitor manufacture to have ISO 9001-2000 certification in India SUBSIDIARIES OF KSEDC.ALAPPUZHA 19 . INSTITUTE OF MANAGEMENT IN KERALA . which is continuously reviewed to enhance its effectiveness and updated to meet changing requirements. Government of India approval for the in-house Research & Development ISO 9001-2000 certification from KPMG-QR. 0. National Productivity Award for 1988-89 under large scale electronic components units from National Productivity council. They are committed to achieving their policy with the involvement of employees at all level through a well refined quality management system.125. Keltron Resistors Ltd: Keltron Resistors Ltd (KRL) located at Keltron Nagar.250. ELCINA Award 1993 for excellence in Research & Development for work done in the field of forming technology Department of scientific and Industrial Research. Ministry of Science and Technology. KRL markets its products through its Holding Company which is the Sole Selling Agent viz. This unit manufactures Metal Film Resistors in both professional Grade and General Purpose application. The company has as installed capacity of 217 million to manufacture Resistors of both type Carbon Film Resistors and Metal Film Resistors in wattages 0. The Government of Kerala sanctioned on 27-05-2008 the merger of the four subsidiaries of Kerala State Electronics Development Cooperation Ltd (KSEDC) at Kannur viz. Keltron Magnetics Ltd. The products include Metalized Polypropylene Film Capacitors (MPP Capacitors). A. Keltron Crystals Ltd: Keltron Crystals Ltd (KXL) is a subsidiary of Kerala State Electronics Development Corporation Ltd.ALAPPUZHA 20 . Keltron Component Complex Ltd (KCCL). Kannur. The Company’s product range for Crystals is extensive and covers frequencies from 1 KHz to 175 MHz. The Company has an installed capacity of 2. INSTITUTE OF MANAGEMENT IN KERALA . Quartz Crystals are used for accurate control of frequency in electronic circuits and find application in various types of communication equipment.084 million numbers of Quartz Crystals per annum. Keltron Resistors Ltd. The company is situated at KELTRON NAGAR.T Power Capacitor and Servo Controlled Voltage Stabilizers for Industrial and Defence application. Keltron Crystals Ltd. The Company is located at KELTRON NAGAR in Kannur. (KCCL) into one company. (KML). The Company has been manufacturing various types of precision piezo electric Quartz Crystals from 1976. (KRL). The amalgamated Company was to function under the name. established in the year 1975 for manufacture of Electronics/Electrical Components and equipments.C Shunt/ L. It was the second Crystal manufacturing Unit to be set up in the country. the Company has undergone a transformation both structurally and functionally. (KXL). and Keltron Component Complex Ltd. Keltron Magnetics Ltd: Keltron Magnetics Ltd (KML) is a subsidiary of Kerala State Electronics Development Corporation Ltd (KELTRON). the product is termed as Mounted Piezoelectric Crystals under the head 8541. THE AMALGAMATION In the year 2008-09. microprocessor based systems and time keeping devices. In the HSN classification.00. MPP Capacitors. Carbon & Metal Film Resistors. The company continues the activity of reducing the material costs through value engineering. The company had designed Motor Start Capacitors meeting UL Safety requirements and the product has been certified by UL India Pvt Ltd. INSTITUTE OF MANAGEMENT IN KERALA . KCCL markets its products under the brand name “KELTRON” of its parent Company. and Piezoelectric Quartz Crystals. The Company’s Quality System has been conferred with the ISO 9001 accreditation by KPMG. the Company had commissioned a new plant for the manufacture of Elements for MPP Capacitors and Power Correction Capacitors. internal R&D effort etc. It has the state of the art manufacturing facility with sophisticated automatic machines from Japan and Europe. The company registered a turnover of INR 45Crores in 2009-10 and has aggressive growth plans targeting a turnover of 200Crores by 2015 FUTURE PLAN. Efforts are made to increase the volume of production and sales to enhance its market share countering the competition from domestic as well as foreign suppliers. The amalgamated Keltron Component Complex Ltd is a major indigenous manufacturer of Aluminium Electrolytic Capacitors. It has also expanded its product range by commencing the sales of Power Correction Capacitors in the range of 1KVA to 30KVA. The Company is also planning to enter into the manufacture of Large Can Capacitors (High CV Capacitors). In September 2008. The company is hopeful of receiving orders for these types of capacitors from manufactures of compressors/motors who export their end- products to Canada & USA.ALAPPUZHA 21 . PRASANNAKUMAR CHAIRMAN Lt Col.05 3 IDBI 141450 1414500 0.2 PRODUCT RANGE. TYPES: INSTITUTE OF MANAGEMENT IN KERALA .16 7 GIC Ltd 40000 400000 0.47 4 IFCI 60000 600000 0.1 BOARD OF DIRECTORS NAME TITLE C. RADHAKRISHNAN DIRECTOR U. No Shareholder No of shares capital percentage Kerala State Electronic 1 22315010 223150100 73.03 9 SIDCO 42500 425000 0.14 10 Public 340665 3406650 1. SHARE HOLDING PATTERN AFTER AMALGAMATION Paid up share Shareholding Sl.13 8 United India Insurance Co. V. Ltd 10000 100000 0.19 6 LIC 50000 500000 0.51 Development Corporation Ltd 2 Government of Kerala 7300000 73000000 24.20 5 ICICI Bank Ltd 58000 580000 0.ALAPPUZHA 22 . PARESH AGARVAL MANAGING DIRECTOR K. PRAVEEN DIRECTOR PRINCESS PARVATHY BHAI DIRECTOR Table 3.12 Total 30357625 303576250 100 Table 3. Aluminium Electrolytic Capacitors 3.3 ~ 450 V Orange +85°C WV 160V 0.Aluminium Electrolytic Capacitors 5.40°C 6.1 ~ 22000 μF -25°C to +85°C for WV > 160V Radial lead type . 1.S.40°C to +105°C for 6. Radial capacitors – Aluminium Electrolytic Capacitors 2. Axial lead type . Large Can .ALAPPUZHA 23 .Aluminium Electrolytic Capacitors 4.1 ~ 10000 μF to+105° c for wv>160v Radial lead .R to Orange +85°C +85°C 1 ~ 4700 μF INSTITUTE OF MANAGEMENT IN KERALA .3 ~ 450 V Orange +105 °C wv 160v-25° c 0.40°C 25 ~ 50 V Orange Horizontal to Correction +85°C +85°C 1 ~ 18 μF (Nonpolar) SE Radial lead .1 ~ 2200 μF (Nonpolar) +85°C Radial lead .3 ~ 100 V Bi-polar +85°C to Orange 0.3 ~ 160 V low E.40°C 6. MPP ( Metalized Poly Propylene) Capacitors SERIES FEATURES OPERATING WORKING BODY TEMPERATURE VOLTAGE COLOUR RANGE CAPACITANCE (VDC) RANGE( μ F) Radial lead Standard -40°C to +85°C for 6. AC Motor Start . -40°C to +85°C for 6.3 ~ 450 V Axial lead Standard WV 160V Orange + 85° C -25°C to +85° C for 0.3 INSTITUTE OF MANAGEMENT IN KERALA .ALAPPUZHA 24 .1 ~ 22000 μF WV > 160V MS/MD -30°C AC Motor Start to 115 ~ 330VAC Green Capacitor Single +70°C Can (MS)& Double 20 ~ 250 μF Aluminium Can (MD) Snap-in -40°C to +85°C for 10 ~ 450V Orange WV 160V -25°C +85°C to+85°C 47 ~ 47000 μF for WV > 160V Lug Terminal -40°C to +85° C for 16 ~ 400 V Green WV ≤ 160V +85°C 150 ~ 100000 μF -25°C to+85°C for WV > 160V Screw Terminal -40°C to +85°C for 16 ~ 450 V Greeen WV ≤ 160V +85° C 220 ~ 100000 μF -25°C to+85°C for WV > 160V Table 3. ORGANISATIONAL CHART SIC HOD PC I PLG HOD SIC MFG PC II HOD SIC MKT PC III HOD FN SIC PC IV HOD P&A HOD PE DIRECTORS CHAIR MAN BOARD OF HOD MD CAL HOD R&D HOD E&F HOD MAT HOD E&D HOD QA HOD Fig. 4.1 EDP INSTITUTE OF MANAGEMENT IN KERALA - ALAPPUZHA 25 ABBREVIATIONS; HOD: Head Of The Department SIC: Section In Charge PLG: Planning MFG: Manufacturing PC: Production Centre MKT: Marketing FN: Finance P&A: Personnel & Administration PE: Plant Engineering CAL: Calibration R&D: Research & development E&F : Etching & Forming MAT: Materials E&D: Engineering & Design QA: Quality Assurance EDP: Electronic Data Processing INSTITUTE OF MANAGEMENT IN KERALA - ALAPPUZHA 26 CHAPTER 4 FUNCTIONAL AREAS INSTITUTE OF MANAGEMENT IN KERALA - ALAPPUZHA 27 FUNCTIONAL AREAS AT KCCL The various business processes, their interaction and sequences are identified by the nature of business. Following business processes performed in the organization are classified into the following sixteen departments; 1. Personnel & Administration Department 2. Finance Department 3. Marketing Department 4. Planning Department 5. Engineering & Design Department 6. Materials Department 7. Production Department 8. Etching & Forming Department 9. Plant Engineering Department 10. Calibration Department 11. Quality Assurance Department 12. Research & Development Department 13. Electronic Data Processing Department INSTITUTE OF MANAGEMENT IN KERALA - ALAPPUZHA 28 material and machines are regarded as the three important factors of production. There are two assistants under Assistant Personnel Officer. but without the efficient use of Human Resource Management. The management makes an effort to co-ordinate human and material resources in such a manner that organizational objectives are achieved. It is not very difficult to handle material resources. Human beings constitute the organization at all levels and are regarded as the chief dynamic factor of production.ALAPPUZHA 29 . it can never accomplish the objectives of the business.5. Assistant Personnel Officer and Supervisor.1 INSTITUTE OF MANAGEMENT IN KERALA . Manager is the staff officer in the organization. KCCL has a very efficient Personnel and Administration Department. The security guards are under the control of Security Officer. He gives advice to the Deputy Administration Officer. The Deputy Administration Officer gives direction to the security office. DEPARTMENTAL CHART OF PERSONNEL AND ADMINISTRATION DEPARTMENT GENERAL MANAGER MANAGER PERSONNEL OFFICER ADMINISTRATION OFFICER TYPIST ASSISTANT HELPER SECURITY TRANSPORT ESTATE T Fig. PERSONNEL AND ADMINISTRATION DEPARTMENT Men. A proper and systematic man p[power planning programme requires proper forecasting and planning for future. For executive posts the company approaches professional and employment exchanges. REQUIREMENTS AND PLACEMENTS As KCCL is Govt. recruitment of candidates is done through employment exchanges. Personnel and Administration Department notifies it to employment exchanges. Manpower Planning Recruitment & Placement of employees Co-ordination & Training of employees Keeping personal records of employees Arrange in-house and external training to employees Time keeping Performance appraisal Promotion of employees Wage administration Administration of standing orders and adopting welfare measures MAN POWER PLANNING: For meeting the requirements of employees. FUNCTIONS The main functions performed by the Personnel and Administration Department in KCCL are as follows. the department goes for scrutinizing INSTITUTE OF MANAGEMENT IN KERALA . T he first problem is solved by job analysis and the second problem is tackled through man power planning. T he first problem is solved by job analysis and the second problem is tackled type of men is to be recruited and in what number they are required. Company.ALAPPUZHA 30 . they issue a NAC. management must decide before hand as to what type of men is to be recruited and in what number they are required. to create and evaluate the man power inventory and to develop required talents among the employees selected for promotion. After receiving the applications from the candidates. As and when a vacancy arises. If suitable candidates are not available with the latter body. It should consider developing man power requirements for the whole organization. Then the Personnel Department publishes vacancies in leading newspapers. training period etc are recorded. TRAINING In KCCL internal as well as external training is given to employees. It is concerned with giving the new employee a friendly welcome. Introduction or orientation training There are two phases of induction training program. represented by concerned department head. Types of training program in KCCL can be described as. work educational classes. products health and welfare plans etc. KEEPING TRAINING RECORDS OF EMPLOYEES All the details regarding the training given to employees are recorded in KCCL for future reference. he is directed to sign and return one of the copies of the order. The company calls the selected candidate for interview.ALAPPUZHA 31 . type of training. Due to technological developments and improved techniques of managements and production the training initially given will become out of date creating the necessity of giving new training. a nominee of the Government of Kerala and the Personnel Manager. For this the company has a selection board. date of birth. qualification. joining date. For this Regional Worker’s Training Education Centre officers come to KCCL and give training. department in which he is working. 1. Details such as name of employees. If the person is willing to abide by the terms. 2. employees are initially given on-the-job training. Then the company gives appointment order to the selected candidate along with terms and conditions for appointment. INSTITUTE OF MANAGEMENT IN KERALA . The 1st phase is generally conducted by the Personnel Department. For existing employees. external training etc. Fresh hands will be selected as trainees for a period of one year. them. briefing him in the matters concerned with the company’s background. This board conducts interviews and selects suitable candidate. it is conducting refresher training by way of lectures. Refresher training On first appointment. PERFORMANCE APPRAISAL Performance appraisal is the systematic evaluation of an individual’s performance in the job and his potential for development. the department then decides about the regular placements of the employee.ALAPPUZHA 32 . Ordinarily the evaluation is done by immediate supervisors. supervisors & executives have different serial number. executive appraisal and annual performance appraisal. The workers. Self appraisal form is for self assessment of the employees. A master roll is kept by the organization. TIME KEEPING Every employee is given a separate card with specific number having four digits. INSTITUTE OF MANAGEMENT IN KERALA . In KCCL at the end of the training period the trainees are absorbed according to his performance during the training period. The other two are filled by the concerned department supervisors. Appraisal is the evaluation of work quality. It is the systematic and objective way of judging the relative work or ability of an employee in performing his job. On the basis of his performance during the probation period. So it is technique used to know the work of an employee qualitatively on-the-job in comparison with other employees. late coming is not allowed. In the second half. employees. The Personnel Department provides performance appraisal forms for self-appraisal. Depending upon the performance of the trainee the Personnel Department decides whether the probation period is to be extended or not. It is one of the oldest and usual practices of management. Maximum half an hour late is permitted to every employee. Electronic punching system in KCCL is used to record the time of entry and exit of each employee. Supervisors and Workmen are covered under MOS signed in April 1996.000/.e. WAGES AND SALARIES The three categories of employees.m.m. House Rent Allowance This is an allowance given to the employee by the employer in order to compensate the higher rents prevailing in big cities. Shift Allowance The general shift is from 8. i. The DA of executives and supervisors will be based on Kerala Government norms.25 as CA.000/-p.30 pm and other 3 shifts such as 7 to 3.pm to 7.16.12.000/-p. Similarly will get supervisor category will get a salary of around 14. Rs. According to this MOS a senior worker will get a total salary at around Rs.am.7 and Rs.7000/-p. A workman gets Rs. while a newly inducted workman will get a minimum remuneration of Rs. Conveyance Allowance It is the allowance used to meeting expenses on conveyance for performing office duties.p.10 INSTITUTE OF MANAGEMENT IN KERALA . 3 to 11 and 11. It is fixed as per All India Consumer Price Index.5.The employees who are working in these 3 shifts apart from general shift are given compensation known as shift allowance being Rs.30 to 4.m.000/-p. 1960 series.ALAPPUZHA 33 .m. It varies every three months. The DA for workmen is based on the Consumer Price Index at all India level.25. The DA pattern of workmen is different from those in executive and supervisor category. ALLOWANCES AND BENEFITS Variable Dearness Allowances VDA is an allowance given to the ordinary workers every month. and the Senior Executive will get Rs.m. Executives. The Junior Executive will get around Rs. WELFARE MEASURES Washing.ALAPPUZHA 34 . The employees should given only the one fourth of the cost of the food. toilet and bathroom facility For drying clothing Facility for sitting First aid equipment Canteen Crutch Library INSTITUTE OF MANAGEMENT IN KERALA . Daily a cup of tea is free to all employees. This scheme also extends to family members depended on the employee. helps in checking out blood group. Food Subsistence Allowance There is a reduction in the price of food provided by the company to the employees. Medical Reimbursement All employees are eligible for medical reimbursement scheme. Also the management has decided to allow once day leave for the blood donor. The amount of the benefits is given on the basis of service of employees Blood Donation Forum Keltron having a blood donation forum with assistance from employees for donating blood to the needy people. The IT dept. workmen trainee. resignation. seniority. GROUP INSURANCE SCHEME The group insurance scheme is applicable for every employees working in the organization. PROVIDENT FUND Provident fund is the fund that provides for future. address and other particulars. This fund is credited by the amount deducted from salary of the employee every month to which the management adds its own share at a certain rate. he receives the full amount standing in the credit of his fund which includes periodical interest added. workmen’s classification. temporary appointment. probation. When the employee retires from the service. salary. workmen. This standing order defines company management. leaves etc. WORK FORCE Total Employees : Around 700 Permanent Employees : 315 Employees on Contract : 70 Casuals And Apprentice TRADE UNIONS INTUC CITU KEO (Keltron Employees Organisation) DKEU (Democratic Keltron Employees Union) INSTITUTE OF MANAGEMENT IN KERALA .ALAPPUZHA 35 . transfer. ADMINISTRATION OF STANDING ORDERS In KCCL Standing Order Act 1946 is applicable to workmen in the industrial employment. sales tax and CST & VAT KEY FINANCIAL ACTIVITIES 1) Financial analysis. maintenance of details of check payments etc Maintenance of commercial accounts. INSTITUTE OF MANAGEMENT IN KERALA .ALAPPUZHA 36 . It mainly concerns with acquisition and use of funds by the firm.Kannur give cash credit facility to Keltron. income tax Payment of company bills viz . electricity and monthly returns of professional tax. FINANCE DEPARTMENT Finance is the life blood of any business organization. This business process regulates all types of commercial transaction. Adequate amount is always necessary for any type of business. telephone. FUNCTIONS OF FINANCE DEPARTMENT Preparation and maintenance of accounts related document and records Recording of bank transactions like cash withdrawals. planning and control Assessing the financial performance and condition of the firm Forecasting and planning the financial structure of the firm Instituting appropriate system of control to ensure that actions of managers are concurrent with the goals of the firm 2) Management of firm’s asset structure Determine the capital budget Managing the liquid resource Establishing credit policies Controlling the level of industries Debt and dividend policy Choosing the special instrument of financing Negotiating and developing relation with various suppliers On the basis of current assets value SBI-Kannur and Catholic Syrian Bank. HOD : Head Of the Department OIC : Officer In Charge PS : Private Secretary INSTITUTE OF MANAGEMENT IN KERALA .ALAPPUZHA 37 .2 Abbreviations.5. DEPARTMENTAL STRUTURE OF FINANCE DEPARTMENT HOD (FINANCE) PS SALARY GENERAL SALES COSTING ACCOUNTS ACCOUNTS ACCOUNTS OIC OIC OIC OIC CASHIER ACCOUNTS ACCOUNTS CASHIER ACCOUNTS TYPIST ACCOUNTS ASSISTANT ASSISTANT ASSISTANT ASSISTANT HELPER Fig. copy of the report is sent to the Accountant General Trivandrum and also presented before the shareholders. Kannur ❸ Syndicate Bank.ALAPPUZHA 38 . Kannur As 80% of the raw materials for the production of capacitors are imported. Moreover there is an efficient internal check system also.1 AUDITING The company has efficient external auditors. If there are any comments from the auditors shareholders. After completing the audit. The details of the banks that gives LC for this purpose is given as. Kannur 175 Table 5. Besides this statutory auditors appointed by the company law board audits the accounts and records of the company. Keltron has to provide Letter of Credit. The company’s expenditure has been classified into the following heads. the company should provide sufficient explanation to these comments. Kannur 525 Catholic Syrian Bank. Kannur ❷ Catholic Syrian Bank. Materials consumed Personnel cost Financing charges Selling and distribution heads Excise duty Other operating expenses Miscellaneous expenditure ASSOCIATED BANKS ❶ State Bank of India. INSTITUTE OF MANAGEMENT IN KERALA . NAME OF BANKS CREDIT LIMIT (in lakhs) State Bank of India. Medical advance. DIVIDEND The company has regularly paid dividend to its shareholders since 1985-86. Raw materials requirement will be estimated on the basis of comparison with previous year’s figures. Festival advance and OT payment register INSTITUTE OF MANAGEMENT IN KERALA . Since then it is not able to pay dividend. Internal Audit Statutory Audit Audit of Controller and Audit General of India CONTROL Budget for a succeeding year is prepared and presented to the BOD during January or February each year. Creditors ledger Salary register Subsidiary registers like TA advance. RECORDS MAINTAINED Cash book Bank book Journal book General ledger Asset register Purchase journal. Total budget is split up into four quarters and procurement of materials capital and other expenses are controlled on the basis of these allocations. The audit in Keltron consists of. Salary advance. It is prepared on the basis of sales projection provided by marketing department. Sale pay book. The last time it paid a dividend of 10% in year 1993-94.ALAPPUZHA 39 . At KCCL. the marketing department acts as a guide . Communication is vital and the marketing department typically has a better understanding of the market and customer needs. It is system of interacting business activities designed to plan. promote and service to existing and potential customers. competitive price possibly at international level. The main function of marketing is to vies the customer as the very purpose of business. The upper management is also involved in and endorses co-operation by all department in following and implementing the plan and integrating a consistent message into all communication channels. fulfilling and servicing products and services for their customers. MARKETING DEPARTMNENT Marketing is the performance of business activities that direct the flow of goods and services from the producer to the customer.and lead the company’s other department in developing.ALAPPUZHA 40 . OBJECTIVES To generate maximum business at possible price Speedy realization of payments To encourage dealers for doing more business and for doing immediate payment by offering turnover discount and cash discount Optimum satisfaction to customers through timely supply of products. Without marketing there is no consumer and without the customer there is no use for the product or service the company is producing. INSTITUTE OF MANAGEMENT IN KERALA . producing. The goal and guidelines set by the Marketing Department are in line with the vision and mission of the company. It emphasizes on identification of a market opportunity and fulfilling the needs of customer. quality products. Currently 7 main types of aluminum electrolytic capacitors are available.ALAPPUZHA 41 . Price The prices are based on pricing policies taken by the company based on the market condition. 2.5. INSTITUTE OF MANAGEMENT IN KERALA . Product Marketing department ensures that the product is of the same grade as specified by the customer and meets the quality standard. DEPARTMENTAL STRUCTURE OF MARKETING DEPARTMENT MARKETING MANAGER SALES OFFICER SALES OFFICER SALES ASSISTANT SALES ASSISTANT SALES ASSISTANT SALES ASSISTANT Fig. The pricing decisions are taken by the Marketing Department after studying the market condition and also comparing the competitor’s price.3 ELEMENT OF MARKETNG MIX 1. KSEDC carries out the function of marketing on commission basis (charging 7. The primary cartons are then put into mother cardboard cartons before shipment. Capacitors value. Ahmedabad. 5.. a rural area in Kannur MARKETING ACTIVITIES IN KCCL Keltron carries out the marketing of KCCL as on contract basis. Chennai and Hydrebad. Capacitor Part No.ALAPPUZHA 42 . But from 1997 onwards the export is done directly by KSEDC. Kolkata. mainly on electronic segment. New Delhi. All those years the exports are done through ET&T department. Temperature. Individual primary packing in Polythene bag is provided with label which carries outgoing Inspection Repot No. 3. Since the company goes for Industrial marketing department. Capacitor Tolerance and Capacitors size. Promotion It deals with advertising and sales promotion for the product. Place In this industry the place is not that much important. As holding. And they also have agents in most of the places in India. In the production plan is set up in Kalliassery. Radial & Axial type capacitors are generally bulk packed in the Polythene bags which are heat sealed to avoid direct atmospheric exposure. Kannur and has branch offices in Mumbai. INSTITUTE OF MANAGEMENT IN KERALA . Sealed bags are then packed in cardboard for shipment. working Voltage. Capacitors series. 4. Packaging Different type of packing is done for different type of capacitors. KCCL has corporate marketing offices in Trivandrum. it concentrates on direct marketing as a means of promotion which enjoys the advantage of two ways communication.5% commission). Motor start and large Can electrolytic capacitors are generally packed in primary cardboard by employing suitable separators to avoid damage during transits. Quality and date of Packing.. Infrastructure like fax. ADVERTISEMENT The products manufactured by Keltron are not consumer goods as they are used for further production so it has no requirement to spend huge amount on advertisements. will not be eligible for cash discount.5% of the turnover achieved in respective financial year. telephone. dealer shared advertisement. whose earlier bills are outstanding for more than 75 days from the date of invoice. The agent should have sufficient technical knowledge to deal with customer problems. INSTITUTE OF MANAGEMENT IN KERALA . cash discount at 3% may be offered to the customers for payment by DD/Local Cheque against delivery/receipt of the materials. After satisfying the above conditions the appointed agent enters into an agreement with the company which is signed both by the agent as well as the wise president and the marketing manager of the company. Dealers are allowed to release advertisement in newspapers and media on shared basis. CASH DISCOUNT For quick and better cash flow. where house etc. AGENTS Agents are appointed by KCCL because it is not possible for the company to cater to the need of all the customers who are situated at various cities of which are far from their branches. Advertisement thus given is. The person appointed as agent should have good contacts in the industry.ALAPPUZHA 43 . Agents are appointed as per the recommendation made by the branch officers to the management. The person to appointed as the agent should be financially strong. Criteria for appointment of an agent are the following: An agent should have a business in the potential area or in the particular industry. The agent should have sufficient market as well as office. Company would share 50% of the advertisement cost subject to 0. The OEMs/dealers. Keltron also takes keen interest in diagnosing and solving customer complaints.ALAPPUZHA 44 . INSTITUTE OF MANAGEMENT IN KERALA . This process helps the company to pick the best market where it can be a tough competitor. There are authorized dealers for the company who carry out the required sales operation. CUSTOMER COMPLAINTS In order to attain maximum customer support importance is given for after sale services.5.4 MARKETING PLAN AND STRATEGY Every year Marketing Department fixes a yearly and quarterly target with the authorized dealers by consulting the production regarding the likely demand for the product. DISTRIBUTION CHANNEL As any other firm Keltron also use both direct distribution network and dealer network. Earlier emphasis was given to direct network but now-a-days majority of the sales is through dealers. AUTHORISED DEALERS R C E U NEW DELHI T S AHAMEDABAD A T I O HYDERABAD L M E E CHENNAI MANUFACTURER R R (KELTRON) MUMBAI S S KOLKATTA BANGALORE THIRUVANATHAPURAM Fig. Further it collects information from its customers and on this basis the company may modify the production requirement to suit the customer’s requirement also segmentation of the market is done on the basis of customers and applicability. etc. Indigenous competitors are not a threat to KCCL. BRAND NAME The brand name of the company’s product is KELTRON PACKING The capacitors are generally packed in the following ways. A complaint register is provided to locate complaints.etc. CUSTOMER SATISFACTION Customer satisfaction is measured through analysis of customer feedback and complaints. Philips.ALAPPUZHA 45 . Elcap. GUARNTEE AND WARRANTEE One-year guarantee is given to OEM and Government units. questionnaires. Uptron. Bulk packing polyethylene bags Taped Ammo box packing INSTITUTE OF MANAGEMENT IN KERALA . Elnet. In case there are any defects or shortage in the quantity the company replaces it and / or provides full quantity. survey of OEM’s and other suitable methods. But .Sansung.Elna. the company has to compare with international brands like Rubycon.Panasonic. Webelson.due to liberalization of economy and bringing capacitors under OGL. reports of marketing personnel. COMPETITORS The major competitors in India for Aluminum electrolyte capacitors are Punusumi India Ltd. Incap.. 6 2004-05 2455.37 2000-01 2693.42 2007-08 3306.2 INSTITUTE OF MANAGEMENT IN KERALA .85 2003-04 2448.ALAPPUZHA 46 .21 2002-03 3089.72 2009-10 Table: 5.12 2008-09 4470.50 2006-07 2159.2 2005-06 2382.29 2001-02 3014. SALES TURN OVER FOR 10 YEARS YEAR TURN OVER (IN LAKHS) 2819. the planning department prepares the usual yearly production plan. 3 month production plan and even a monthly production plan will also be prepared depending upon the requirement of the market.ALAPPUZHA 47 . Marketing department will prepare an annual budget based on demand. The prepared plan will be then forwarded to the materials department. materials. and every planning starts with forecasting. PLANNING DEPARTMENT Planning is the step in the direction of setting up of an enterprise. Materials is not available. trend and prices existing in the market. The material department checks the availability of raw materials in the stores. production department and all other concerned departments. The process in the planning includes the decision taken in advance. planning is to done in all areas like production. Besides yearly production plan. the purchase department will make arrangement for purchasing the materials and after the materials have arrived. when is to be done and for what purpose is to be done by considering all constraints. By using this. etc. to commence production. During these times the specification may vary from the usual specification on which the production is carried out. This then sent for the consent of the MD. In KCCL. The production department checks and makes sure that the plant is capable producing that concerned product upon the needed specifications. special work order is given to the production departments OBEJECTIVES The work order prepared is analyzed and the pending work order list should be given Material shortage list should provided To reduce wastage as possible To attain maximum productivity INSTITUTE OF MANAGEMENT IN KERALA . HOD : Head Of the Department OIC : Officer In Charge SIC : Section In Charge PLANNING COMMITTEE The planning committee includes. DEPARTMENTAL STRUCTURE OF PLANNING DEPARTMENT OIC/ SIC HOD TYPIST/ASSISTANT ASSISTANT ASSISTANT TYPIST/ASSISTANT Fig.ALAPPUZHA 48 . Head of the planning department Head of the marketing department Head of the production department Head of the personnel department Head of the finance department INSTITUTE OF MANAGEMENT IN KERALA .5 Abbreviations.5. and strategies to finalize a feasible solution to the problem. to determine objectives. First a monthly budget is prepared and given to each department and from the concerned departments further implementation takes places. DUTIES The main duties of planning department are. The main objective is to highlight the problem faced by each department. policies.ALAPPUZHA 49 . Every week a meeting is conducted of all department heads with the MD. budget and production capacity Work out material input requirements on the basis of plan Prepare monthly plan for production Authorize production based on the plan through work order procedure Monitor and control use of material of production operation Training of personnel in the department INSTITUTE OF MANAGEMENT IN KERALA . Prepare the yearly plan based on the yearly marketing. 6 INSTITUTE OF MANAGEMENT IN KERALA . FLOW CHART OF PLANNING Marketing Yearly production plan Annual material indent E&D Marketing Monthly production plan E&D Monthly material indent Work order issue work order work order Production Assembling work order work order Forming Slitting Job work outside Production process Work order closing & Analysis Fig: 5.ALAPPUZHA 50 . For the modern products it is useful to document and analyze the design logic. altering materials. In KCCL. ENGINEERING AND DESIGN DEPARTMENT Engineering Department will receive the external document or drawings.7 OIC : Officer In Charge SIC : Section In Charge INSTITUTE OF MANAGEMENT IN KERALA . DEPARTMENTAL STRUCTURE OF ENGINEERING AND DESIGN DEPARTMET HOD (ENGINEERING & DESIGN) OIC/SIC (ENGINEERING SIC (LIBRARY) & DESIGN) DESIGN CODIFICATION LIBRARY (TECHNICAL) ENGINEERING HOD : Head Of the Department Fig: 5. the Engineering and Design Department is concerned with preparing bill of materials. are converted into stage drawing and further manufacturing process layout. giving technical support to manufacture and giving designs according to the order to suit the customer requirements. This drawing are controlled and given to the concerned person for reference. This means charting with the desired product attributes and then identifying the necessary characteristics for raw materials and process steps.ALAPPUZHA 51 . Such an approval goes for a name as engineering. The drawing received from the customer. issue and stock control of materials Training of persons in department PURCHASE DEPARTMENT The term purchasing in a narrow sense refers merely to the act of buying an item at a price. Raw material stores and Finished Goods stores come under the Material Department.ALAPPUZHA 52 . Purchasing is the key stone of material management. MATERIALS DEPARTMENT Stores and materials department is one of the most important departments in an industry. The purchase committee includes head of material department. This department receives and preserves the raw material till it is issued for manufacturing. QA department. goods at least cost Vendor evaluation and selection Maintenance and proper use of purchasing materials Receipt. They also procure indirect parts / products consumables or services needed for all other processes. A broader understanding makes it a managerial activity. Cost reduction through product purchase. the Purchase Department. consumable space capital. The main objective of this department is to procure raw materials / components / consumables as per procurement plans based on production requirement schedule. finance department with MD. OBJECTIVE Purchase of quality input in right time. components. storage. engineering and design department. INSTITUTE OF MANAGEMENT IN KERALA . This department facilitates the smooth functioning of production. In KCCL. which goes beyond the simple act of buying and includes the planning and policy activities covering wide related and complementary activities. R & D. FUNCTIONS Purchasing of raw material. DD remittance. ACTIVITIES OF PURCHASE DEPARTMENT Identification of the requirements Selection of proper source of supply Deciding on quality and quantity Finalising delivery schedule and price Selecting the supplier Placing the purchase order Arranging transportation of material and goods Receiving the goods and materials and sending them to the stores Accepting the goods after getting quality approval IMPORT OF MATERIALS Planning department forwards the material requirement to purchase department on periodic basis (yearly / half yearly). The raw materials imported by Keltron are eligible for concessional rate of customer duty for which they submit details in a specified format through Deputy Commissioner of Central Excise Kannur to commission of customs Chennai. So insurance is converted by Keltron and in the amount of damages loss. Payment is by irrevocable letter of credit/sight.ALAPPUZHA 53 . The terms of price as per Reserve Bank of India regulation is free on board. INSTITUTE OF MANAGEMENT IN KERALA . if any in transit claim is affected to the underwrite for getting the loss settled. On receipt of the quotation. The part of destination is Chennai and consignment is cleared through our clearing and forwarding agents appointed there. In some cases where the material called for urgent required import is resorted by air. The forwarding agents clear the consignment of Chennai port and dispatch the same to Keltron. The dispatching is generally by sea. a comparison of price and other terms are made and purchase is finalized on the most competitive price tendered. Then the purchase department floats enquiry to the established vendor. PROCESS FLOW CHART – PURCHASE PURCHASE REQUSITION TO PURCHASE SECTION SELECT SUB-CONTRACTORS FROM APPROVED CONTRACTORS LIST SEND OUT ENQUIRY QUATING SPECIFICATION FROM CONTROLLED COPIES COMPARE PRICE AND PREVIOUS PERFORMANCE ON QUALITY DECIDE ON VENDORS/APPROVE PURCHASE PREPARE PURCHASE ORDER VERIFY ORDER FOR TECHNICAL/COMMERCIAL COMPLIANCE AND SIGN ARRANGE LETTER OF CREDIT/OTHER PAYMENT FORMALITIES WHEREVER REQUIRED FOLLOW UP WITH VENDOR FOR DELIVERY ARRANGE COLLECTION OF DOCUMENTS FROM BANK CUSTOMER CLEARENCE & TRANSPORT TO FACTORY RECEIVE MATERIAL & VERIFY QUANTITY LOCAL CLEARENCE & TRANSPORT TO FACTORY Fig: 5.8 INSTITUTE OF MANAGEMENT IN KERALA .ALAPPUZHA 54 . Preservation. if they are meant for stock. VITTAL. Tissue paper. ‘B’ class item fall in between the two categories and require reasonable attention and management. Issue of correct materials for use SCOPE Raw materials.ALAPPUZHA 55 . Proper storage of materials without deterioration in quantity 4. tools etc INVENTORY CONTROL TECHNIQUES ABC ANALYSIS It is not desirables to keep the same degree of control of all items. The highest value items are classified as ‘A’ class. ESSENTIAL. DESIRABLE (VED) INSTITUTE OF MANAGEMENT IN KERALA . storage can contribute to effective operations. The ‘C’ class represents the least value and would be under simple control. The items fall in ‘A’ class are Aluminum foil. To establish and maintain storage proceedings 2. Chemicals and paddles. PURPOSE 1. and would be in tightest control. Consumables for production in capacitor as well as E&F plants of KCCL General stores Spares Equipments. Components. The firm should pay maximum attention to those whose value is highest. the purchased materials are taken into stores for preservation. Non stock items are directly taken to assembly lines from inspection. The firm should therefore classily inventories to identify which items should receive the most effort on control. Condenser. etc which are given must care. RAW MATERIALS STORE After inspection. Receipt of correct materials 3. The material handling equipment used in stores are Trolley. Sleeves PVC. The bill of the party is sent to accounts for effective payment. general items and consumables is done by stores Bin cards are marked with Reorder Level and Reorder Quantity STOCK VERIFICATION Materials are verified physically at least once in a year against records SCRAPS MANAGEMENT Scraps arising out of production processes are consolidated at scraps yard in different locations as marked for each. Brass bullet. Tab lend. Cash. LOCATION The Raw Material stores in two locations – one is attached to capacitor production plant and other on is in the Etching and Forming building STOCK CONTROL Stock control of spares. Bitumen Shalimer. PVC tubes. Label and Gasket There are mainly 299 major raw materials used for different production process. through outside source. Metro phenol. Pulley block and Drum trolley. Solder wire flex. Clamps. MAJOR RAW MATERIAL Aluminum foil. All scraps are disposed off on sealed tender or otherwise periodically. Robber bung. SUB CONTRACTORS It may sometimes become necessary to get some specific job work done like sleeve printing etc. In such cases the planning department issue work orders and then the contract is given by the materials department to one of the sub contractors on the basis of the list they maintain. The materials are received by Keltron from the sub contractors and sent for inspection.ALAPPUZHA 56 . INSTITUTE OF MANAGEMENT IN KERALA . SAFETY MEASURES Petroleum. RECORDS MAINTAINED a) Store Requisition Note b) Bin Card c) Store Return Note d) Material Gate Pass e) Purchase Requisition ORGANISATION CHART OF RAW MATERIALS STORE HOD (materials) OIC stores SIC stores (1) SIC stores (11) Assistant Store Keeper Assistant Store Keeper Helper Helper Helper Helper Helper Helper Fig: 5. High speed diesel oil stored in overhead tank in a separate fenced area. Oil and Lubricants are stored in separate area.ALAPPUZHA 57 . Stores door is sealed at the close of working hours with signature of the OIC on gummed paper pasted on the door.9 INSTITUTE OF MANAGEMENT IN KERALA . which is checked at time of opening next day. Sales tax form d. through courier or local hand delivery Ensure that the materials are received on time by the consigned party Maintains document pertaining to central excise submission of monthly returns to Central Excise authority. Documents for dispatch. Copy of invoice e. Declaration c. For accounting purpose a copy of the delivery note goes to EDP department. Packing list Materials are then transported. FUNCTIONS The produced capacitors after being passed by the QA department are sent to stores with delivery note. The primary packing is done and the cartoons are labeled and the cartoons are placed in the specified Bin according to the location. The invoice for the goods to be dispatched is prepared. If the buyer reject any batch of finished goods are taken to Raw material department and the information is sent to QA department and then re-credited to the FG stores. Forwarding note to transport b.ALAPPUZHA 58 . These goods are stored in the finished goods store. On the basis of the packing list the materials are taken from their respective location and secondary packing is done and finally makes the materials ready for dispatch. a. if required by the customer Receive a lorry receipt or parcel way bill. The EDP prepares the packing list. INSTITUTE OF MANAGEMENT IN KERALA . FINISHED GOODS STORE Raw materials after passing through various operations is converted to finished goods which are ready for sale. The First In First out (FIFO) method is used at the time of dispatching. ALAPPUZHA 59 .10 INSTITUTE OF MANAGEMENT IN KERALA . ORGANISATION CHART OF FINISHED GOODS STORE HOD (materials) OIC stores Store keeper Store keeper Helper Helper Helper Helper Helper Helper Fig: 5. ALAPPUZHA 60 .11 INSTITUTE OF MANAGEMENT IN KERALA . FLOW CHART OF FINISHED GOODS STORES Credited materials collecting from manufacturing Verifying primary packing & labeling Quantity Checking Sealing Locating Issuing of materials against PS checking strapping Checking of invoice against DBA forwarding note gate pass Dispatching Fig: 5. information and energy. The machinery used for the production purpose is fully automated. The work order is issued to meet the specific demand of the customer. DEPARTMENTAL CHART OF PRODUCTION DEPARTMENT HOD PRODUCTION IN CHARGES SECTION IN CHARGES OPERATORS Fig: 5. materials. This process starts when once the department receives the order for production. According to the nature of the market. meeting the quality and thus achieving the quality policy of an enterprise. utilising the available resources. and thus satisfying the customers for which they are meant. A batch production order is issued for keeping the goods in stores pending orders or when a number of customers order for the same product. The demand for the capacitors won’t be the same throughout the year. The inputs are men.12 INSTITUTE OF MANAGEMENT IN KERALA . capital employed. the marketing department of KCCL analyses the future demand for the capacitors and takes decision along with the managers of Planning &Control and the Production Department. PRODUCTION DEPARTMENT Production is the process of conversion of a set of inputs into a specified set of output. either in the form of finished goods or services. The main aim of this business system is to produce the end products either in the form of goods or services economically. The production or the manufacturing is the business activity of industrial unit on which the activities of other departments work upon. It may different monthly schedules.ALAPPUZHA 61 . a thin needle are stitched to the anode and cathode foil.e. the raw materials like cathode & anode foil. the anode foil are separated with a special thick paper and rolled according to the specifications needed for different capacitors. IMPERGNATION The rolled up form will not have any value or specifications. name. STITCHING AND ROLLING Stitching and rolling are two different processes. PRINTING In this section the printing in various colour sleeves are carried out. electrolyte etc have undergo certain stages of production. While rolling. Now these two needles act as the terminals in the capacitor.. The impregnated capacitor will be manually put into an aluminum can with one end open. i. for higher volt & higher temperature capacitors the foil will be broader and longer than that of the low volt & temperature capacitor. A brief detail about the capacitors like volt. The time required for impregnation defines the voltage of the capacitors it will take at least two hours. are printed on a PVC strip or a colour sleeve which at last will be stuck to the capacitor. value. This process of keeping the capacitor dipped in the electrolyte is to get the desired value.ALAPPUZHA 62 . For this stitched and rolled capacitors are kept in a solution which is called the electrolyte. The stitching will be of star formation.. brand name etc. SEALING SLEEVING – HOT SRINKING AND ASSEMBLING After impregnation . The various steps are follows: SLITTING Slitting is a section where the etched raw materials are cut length –wise based on work order given from Planning Department. VARIOUS STEPS INCLUDED IN PRODUCTION OF CAPACITORS To produce capacitors with the required specification. This INSTITUTE OF MANAGEMENT IN KERALA . This is because the star formation will increase the surface area rather than normal or circular stitching.finished goods are sent for sealing and sleeving. After slitting process the material again goes to the quality desk where the quality inspector checks and approves it. There are machines which can perform both the work simultaneously or different machines to perform these two different works individually. the above semi. The length and the breadth of the foils to be rolled will be different and this defines the character of the capacitors. Stitching is the process by which. voltage is passed. Quality Assurance and Planning Departments. To bring the waste to minimum. So that it can be checked for proper functioning in order to get 100% satisfaction from customer. under the chairmanship of Production Manager and one representative from Research and Development. QUALITY CONTROL After the testing of capacitors. AGEING AND TESTING Ageing is the testing process through which electric voltage is given to the capacitor. If the capacitor is good it is sent for Quality Assurance. The sealed coil goes for ageing and then it is tested. After sealing. The rubber bunk will be having two tiny pores through which the two terminals come out. This is manually done for computer motherboards etc. only customer requirement. If it cannot be re-aged. bulk packing etc. it is rejected. the capacitors are sent for hot shrinking. The main aim of this MRB is to avoid scrap by reviewing the reviewing the rejected capacitors through various developments. But still there may be some. which can’t be reprocessed and they are rejected as scraps..e. Then it is tested. KCCL has formed a separate Material Review Board. WASTE MANAGEMENT IN KCCL In KCCL the overall percentage of waste in production is just 2%. If it is tested bad then if re-ageing is possible. Sometimes capacitors are tapped. then re-ageing is done and it is tested. This entire process is called sealing. INSTITUTE OF MANAGEMENT IN KERALA . It may be packed according to customers requirements like tape packing. The printed colour sleeve is rolled over the capacitor and pressure is given over it along with temperature so that the sleeve remains stuck over and around the can of the capacitor. Then it is tested to see whether it is working properly and has the right voltage and there is no short.ALAPPUZHA 63 . Ageing and testing can be done both automatically and manually the capacitors are put in a trolley and loaded. FIFO method. The board may recommend further process to make those rejected into acceptable products. STORE The finished capacitors is then send to to store. open end will be closed using a rubber bunk. PACKING Only passed items are packed into multiples of hundreds and sent to finished goods store. it is sent to the Quality Assurance Department. from where it is sold to dealers on the first come first serve basis i. ALAPPUZHA 64 . FLOW CHART OF PRODUCTION STORE (RM) SLITTING & PRINTING STITCHING &ROLLING IMPREGNATION SEALING SLEEVING.13 INSTITUTE OF MANAGEMENT IN KERALA .HOT SHRINKING. ASSEMBLING AGEING& TESTNG QUALITY CONTROL PACKING STORE (FG) Fig: 5. Marinating production equipment Control and co-ordinate function of chemical laboratory To issue documented procedure containing working instructions INSTITUTE OF MANAGEMENT IN KERALA . ETHING METHODS The following are the etching methods followed: AC etching DC etching Superimposed DC with AC RESPONSIBILTY OF HOD To ensure that suitable equipment are used for process.ALAPPUZHA 65 . It is an electrochemical oxidation process to develop aluminium oxide polarized barrier on the etched foil at different volts to make use of the capacitors to different working voltage. FORMING In making capacitors the first process is forming. ETCHING Etching is the process b y which the effective surface area of the anode foil is electrochemically etched to increase the surface area by about 50 times for most conventional foil. modernization and expansion plan. research and development is done in this department and considerable increase in surface area is obtained which result in capacitors of compact size. In recent years. ETCHING AND FORMING DEPARTEMENT Keltron also entered into etching and forming of aluminium foil as part of diversification. ALAPPUZHA 66 . DEPARTMENTAL STRUCTURE OF ETCHING AND FORMING DEPARTMENT HOD FORMING OF CHEMICAL AND MAINTENANCE ALUMINIUM FOIL PROCESS CONTROL LAB DEIONISED WATER EFFLUENT PRODUCTION TREATMENT PLANT Fig: 5.14 INSTITUTE OF MANAGEMENT IN KERALA . The set of operation which establish under specific condition.15 INSTITUTE OF MANAGEMENT IN KERALA . the relationship between values of represented by a material measures or a reference material and the corresponding values by the standards. That confidence is proved by Calibration.ALAPPUZHA 67 . CALIBRATION DEPARTMENT Measurements are made using a variety of instruments ranging from very simple t extremely sophisticated. Calibration is the set of operation of determining the values of errors of measuring devices to traceable standard. We must have confidence that all those measuring instruments are giving us valid useful data. ELEMENTS IN CALIBRATION DEPARTMENT Adequacy of standards Calibration procedure Traceability Recall system Calibration report Labelling practice Calibration intervals& adjustments techniques Environmental conditions Outside calibration sources ORGANISATION CHART OF CALIBRATION DEPARTMENT HOD OIC/SIC Typist/ Assistant Assistant Assistant Typist/ Assistant Fig: 5. In Keltron. Trivandrum. THE METERS ARE LABELLED AS FOLLOWS The labels used by the calibration department are as follows: GREEN –valid calibration YELLOW-cleared for limited use RED-instrument shall not be used for measurement BLUE-calibration not required [for indication purpose only INSTITUTE OF MANAGEMENT IN KERALA . At the beginning of every year all the department gives a list of equipments to be calibrated. All the meters of Keltron are being calibrated using the different calibration devices. Then all the meters of Keltron are checked with these meters are calibrated within this period. Various steps make up whole calibration process for the company. they make sure that each meter gives the accurate reading. Calibration is used worldwide. Palakad and Electronic Regional Test Laboratory (south). CALIBRATION PROCESS Calibration makes sure readings are correct. The firm makes sure that all the equipments in the company are calibrated before the guarantee period of the calibrating devices. Based on this list the calibration department prepares a schedule of when to calibrate. Every calibrated meter is labeled to make aware the workers about the reading status of the meter. The listed equipments are calibrated according to the schedule.ALAPPUZHA 68 . In short. the calibration process starts with external calibration. These calibration devices are first calibrated externally from Fluid Control Research Institute. 16 CDH : Concerned Department Head IMT : Inspection. Measuring and Testing equipment PE : Plant Engineering INSTITUTE OF MANAGEMENT IN KERALA . Sent IMTS to CD Repair by PE/ external agency Check Get IMT calibrated by Not available for in external agency house facility CD liase with external HOD agency Out of Calibrate (CD) Calibration decide CALIBRATION Record in Get back IMT and Use with correction factor register/ file calibration report accept error Accept error Send IMT to CDH with sticker/ report Fig: 5.ALAPPUZHA 69 . FLOW CHART OF CALIBRATION CDH & HOD (CD) decide on IMTS to be calibrated OIC (CD) maintain list of IMTS to be calibrated OIC (CD) prepare schedule for calibrated User depts. Absolute traceability is maintained right from the raw material supplier to the finished goods. to analyze the cause of defects whenever they occur. namely: 1) Critical defects 2) Major defects 3) Minor defects INSTITUTE OF MANAGEMENT IN KERALA . which are also categorized into three.ALAPPUZHA 70 . It will increase the good will of the company. Quality of the product is very important for the existence of the company. The company has strict and unfaultable system of quality control right from the procurement of raw material to the sale of finished goods. FUNCTION The quality appraisal of the department is carried stages as follows: 1) Raw material inspection 2) patrol inspection 3) Final inspection Finished products (Capacitors) are inspected for the defects. If found the quality is satisfactory and the components and finished goods conforms to the pre determined specification the department issues acceptable certificate. All type organizations are trying to increase their quality so that the customers will be loyal to their products and they will purchase the products again and again and they may also tell others about this product. components and finished products. For this the department has qualified and competent staff. ensuring that only good quality material is passed to the next stage. QUALITY ASSURANCE DEPARTMENT The duties of Quality Assurance department include central examination of raw materials. ALAPPUZHA 71 .17 INSTITUTE OF MANAGEMENT IN KERALA . DEPARTMENTAL STURCTURE OF QA DEPARTMENT HOD (QA) OIC/SIC in process OIC/SIC final inspection OIC/SIC receiving inspection & life test inspection Inspector Inspector Inspector Inspector Inspector MPP ELF Al. Raw KVR in process Radial Axial Large can AC motor capacitor anode & material capacitor inspection section section section start wound cathode & inspection element foil general & testing testing item Inspector inspecti life test on Inspector Inspecto Inspector r Patrol Outgoing Inspection Inspection Inspector Inspector Fig: 5. Quality controller checks the output by a sample of particular batch under the standard IS - 10673. KCCL produces around 500K-600K capacitors per day . If there is a major deviation from the standard. satisfies the accepted standard. Other parameters are checked by a subsection of manufacturing department by method of sampling INSTITUTE OF MANAGEMENT IN KERALA . This is the standard which is used by the Government of the India for all electronic equipment. The defects are expressed in percentage level.ALAPPUZHA 72 . It will be withdrawn and further rework will be made. and is 100% vested by ageing and testing. OUTGOING INSPECTION This is carried out on the finished goods. Some require 100% conformance as specified. Here the inspection starts after ageing and testing process are done to the capacitors. Those materials that do not give 100% conformance are not accepted because it may adversely affect the quality of the finished product. PATROL OR IN-PROCESS INSPECTION In. the quality assurance continues when the production is in progress. After the raw materials are imported it will be checked with the company’s own standard . If there is any critical problem it will be reported to the HOD and action will be taken depending upon the nature of the defect noticed. This acceptance is called conditional clearance. The materials are accepted only when the quality of the different material are assured. Minor deviations from the standard are overlooked. sometimes they are also cleared for use if end products are marketable. after each process . Here the inspector goes to the plant and check whether the products. RAW MATERIAL INSPECTION The materials which are imported for production are being inspected and the quality is assured . In case of capacitors. the major parameter is the electrical parameter. KCCL. The person assigned for this purpose is named Patrol Inspector. FLOW CHART OF FINAL INSPECTION & TESTING Manufacturing QA 3rd time rework 2nd time rework manufacturing manufacturing Samples 1st time rework manufacturing Inspection 2nd & 3rd time 1st time HOD OIC/ rejection rejection (QA) SIC 2nd time rejection MRB AOC/AOD Passed Preliminary Packing Reject for disposal FG store Fig: 5.ALAPPUZHA 73 .18 INSTITUTE OF MANAGEMENT IN KERALA . O AQL) 02-150 20 0 0 0 150-500 50 0 0 1 501-1200 80 0 0 2 1201-3200 125 0 1 3 3201-10000 200 0 1 5 10001-35000 315 0 2 7 35001-150000 500 0 3 10 150001-500000 800 0 5 14 50000 and 1250 0 7 21 above Table: 5.25 AQL) (1. Table for single sampling plan for normal inspection LOT SIZE SAMPLE SIZE CRITICAL MAJOR MINOR (0.3 INSTITUTE OF MANAGEMENT IN KERALA .01 AQL ) (0.ALAPPUZHA 74 . The department is trying for the vertical integration of the manufacturing process. FORMING OF ALUMINIUM FOIL Etched and formed aluminium foils are the major raw materials for the production of electronic capacitors. Innovation and quality control are major concerns of this department. The company for the first time in India developed the technology for forming of high voltage and low voltage foil in its in-house forming plant. RESEARCH AND DEVELOPMENT DEPARTMENT R&D plays a crucial role in electronic industry. Research and Development has to come out with innovative product and constant up- gradation of technology. The plant was designed and developed by the engineers of the company and the forming machine is fabricated locally. ETCHING PROJECT Etching technology for etching of aluminium foil is yet to be established in India.5%-1% of turnover for Research and Development purposes. INSTITUTE OF MANAGEMENT IN KERALA . The manufactures of electrolytic capacitors have been importing this item since the technology for etching and forming for the aluminium foil is not available in India. KCCL allocates 0. If the company has to survive in the present highly competitive market. The company has already developed indigenously the technology for etching of low and medium gain capacitors. OTHER ACTIVITIES Research is going on for the development of technology for the manufacture of the electrolyte indigenously. The Research and Development is trying for the up-gradation of the technology by reducing the size of the component in par with the Japanese product.ALAPPUZHA 75 . DEPARTMENTAL CHART OF R & D DEPARTMENT HOD SIC PRODUCT SIC ELECTROLYTIC SENIOR TYPIST DEVELOPMENT DEVELOPMENT TECHNICIAN TECHNICIAN APPRENTICE APPRENTICE Fig: 5.19 INSTITUTE OF MANAGEMENT IN KERALA .ALAPPUZHA 76 . FLOW CHART FOR RESERCH AND DEVELOPMENT DESIGN INPUT ORGANISATION AND TECHNICAL INTERFACE PROVISION DESIGN DESIGN REVIEW TRAIL PRODUCTION DESIGN VERIFICATION DESIGN VALIDATION FINAL DESIGN REVIEW DESIGN OUTPUT Fig: 5.ALAPPUZHA 77 .20 INSTITUTE OF MANAGEMENT IN KERALA . ALAPPUZHA 78 . CHAPTER 5 SWOT & PORTER’S ANALYSIS INSTITUTE OF MANAGEMENT IN KERALA . SWOT ANALYSIS SWOT stands for Strength. Weakness.ALAPPUZHA 79 . The crucial fact of a multinational strategy is to be determining the direction of multinational business and course of action to be adapted to each of the destination. Opportunities and Threats of an organization. which the firm with its existing capabilities can exploit fully to improve its profitability and grow successfully. The management can identify those opportunities in different countries. This is possible only when comprehensive SWOT analysis is made in a detached and of compact the threats to the business. ❶ STRENGTH ISO 9001:2008 certification Government owned company Well experienced technical experts and supporting staffs High quality products Better customer service Good infrastructure Brand image Fully and semi automated production system Total Quality Management is adopted Attitudes and commitment of the employees is excellent Easy accessibility by road and rail Good employer-employee relationship It is the only capacitor manufacturer in Kerala INSTITUTE OF MANAGEMENT IN KERALA . ❷ WEAKNESS The company is not running at full capacity Lack of improved and new machines Poor forecasting techniques Problems in recruitment Periodical changes in government policy High priced compared to other brands Interference of Government and other political parties There is high dependability on the import of raw materials Diversification is very slow ❸ OPPERTUNITIES Diversification of products opens ample opportunities for the organization Few competitors R & D to undertake new product development Company is capable to do exports Day to day expanding markets High demand for the product Emerging technologies ❹ THREATS High cost of production Political interference Entry of new players Globalization 80% raw materials are imported Hike in transportation cost Turnover of highly skilled technicians INSTITUTE OF MANAGEMENT IN KERALA .ALAPPUZHA 80 . Threats of substitutes.21 Threat of new entrants Keltron is presently facing threat of entries of new firms. PORTER’S FIVE FORCES MODEL Fig: 5. Rivalry among existing firms It is common in this field. Bargaining power of buyers KELTRON has no bargaining power because there is many other rival companies.ALAPPUZHA 81 . Decrease in market demand Product differentiation High advertising costs Bargaining power of suppliers The suppliers have the bargaining power to demand what they want. High competition. INSTITUTE OF MANAGEMENT IN KERALA . ALAPPUZHA 82 . SUGGESTIONS AND CONCLUSSIONS INSTITUTE OF MANAGEMENT IN KERALA . CHAPTER 6 FINDINGS. FINDINGS Government of Kerala has approved the merger of four subsidiary companies of Keltron. As Keltron imports raw materials. Globalization had a bad effect on the company. Keltron produces high quality products but at a comparatively higher price than its competitors. being there has been no recruitment since many years.ALAPPUZHA 83 . Government control has also a bad effect on the company. Presence of good industrial relation with the local unions and there is greater co- operation between management and employees. A good co-ordination exists between different departments. Most of the products are produced as per the order. INSTITUTE OF MANAGEMENT IN KERALA . import cost is high leading to a loss as the sales price is not able to cover the loss. ALAPPUZHA 84 . The vast scope if the company focus on the IC capacitors since the present demand is high and is expected to be so in the coming years. The company should adopt modern performance appraisal system. It should modernize the machines. SUGGESTIONS Reduction of cost is must for the company to survive The company try to sell its product at competitive price The company can save time and cost through the computerization. Company should carry on diversification. It is better for the company to develop new software which can be connected to the web so that the customers can directly make orders (E-commerce). INSTITUTE OF MANAGEMENT IN KERALA . It has also a super Design & Research section that help in providing capacitors according need of the customers.ALAPPUZHA 85 . It has been always been able to provide high quality products. . Here in this study I also found the problems faced by most public sector undertakings. INSTITUTE OF MANAGEMENT IN KERALA . I get a good idea about the history and profile of “KELTRON” to enlarge my idea in the business world. And also they have a well experienced technical experts and supporting staffs for the accomplishment of the goals of the company. I wish all the very best for the company and I once again express my gratitude to the entire persons who helped me to complete the organizational study. And also the study has given me an insight into the working of an organization engaged in the production of electronic equipments. It is ISO 9001 certified functioning company. The Organization study in Keltron helps me to understand the various functions in an organization and how it is connected with our management theories. CONCLUSSION Keltron has initiated steps to create knowledge and innovations in the electronic field. It is the one of the leading capacitor manufacturing companies in Kerala. INSTITUTE OF MANAGEMENT IN KERALA .Wikipedia. www.com 3. BIBILIOGRAPHY BOOKS 1.com 5. 2. New Delhi: John Wiley & Sons Inc.keltron. www. 3. Department Manuals and balance sheet of Keltron. Sekaran Uma (2006).S.google.keltroncom. Cherunilam Francis (2005). WEBSITES 1.ALAPPUZHA 86 . (2007) Human Resource Management (Text and Cases) . www. Research Methodology for Business – A Skill Building Approach.capacitorindustries.com MANUALS 1.com 4. www. S. New Delhi: Himalaya Publishing House. Business Environment: Text and Cases. New Delhi. www. Khanka.org 2.
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