Kel Os Report Fair

An Organisational Study Conducted at
KERALA ELECTRICAL AND ALLIED ENGINEERING COMPANY LTD.

MAMALA COCHIN

MASTER OF BUSINESS ADMINISTRATION
MAHATHMA GANDHI UNIVERSITY
KOTTAYAM
2011-2012

Submitted by
Smruthi R
Reg No:23519

Sree Narayana Gurukulam College of Engineering
Kadayiruppu. Kolenchery.

DECLARATION

I do here by declare that this report on ORGANIZATIONAL STUDY at Kerala
Electrical and Allied Engineering Company Ltd. Mamala, Cochin. is submitted to Mahatma
Gandhi University in partial IulIillment oI the requirement Ior the award oI the degree oI
Master of Business Administration as a bonaIide record oI the summer internship training
undergone by me in the Iirm and prepared under the guidance oI Dr.Hareesh N Ramanathan,
Department oI Management Studies, Sree Narayana Gurukulam College oI Engineering
Kadayiruppu, Kolenchery.

Certificate
%his is to certiIy that this report is a bonaIide record oI the organization study conducted at
Kerala Electrical and Allied Engineering Company Ltd. undertaken by Ms. Smruthi R Reg No:
23519 Ior the partial IulIillment oI the requirement Ior the award oI the degree Master oI
Business Adminstration program Ior Mahathma Gandhi University, Kottayam.

Proiect Guide

ACKNOWLEDGEMENT

At the outset, I thank God Almighty Ior his blessings throughout the study and Ior
making it possible Ior me to complete the proiect within a stipulated time.
I would like to express my heartIelt gratitude to Prof. C.E Krishnan, Principle, Sree
Narayana Gurukulam College oI Engineering, Kadayiruppu, Kolenchery and Prof. (Dr.)
Kemthose P Paul, Head oI the Department, Department oI Management Studies, Sree Narayana
Gurukulam College oI Engineering, Kadayiruppu, Ior permitting me to undergo this internship
training at Kerala Electrical and Allied Engineering Company Limited.
I am extremely thankIul to Dr. Hareesh N Ramanathan, Department oI Management
studies, who gave me guidance and suggestion Ior the preparation oI this organization study
report. I extend my thanks to all Iaculty members oI Department oI Management studies, Sree
Narayana Gurukulam College oI Engineering, Ior their help and encouragement.
I wish to express my gratitude to Mr. Benny Augustine, Personnel Manager, and Mrs.
Smitha %homas, Junior OIIicer Ior granting me the permission to do my internship training in the
company. Also I express my thanks to, Mrs. Little Flower, who provided all inIormation and
resources.
I also express my thanks to all the staII & workers in the Iirm, who helped me during the
course oI my study.
I extend my token oI love to all my friends Ior their support and encouragement Ior
the successIul completion oI this proiect.

Smruthi R

Contents

Chapter 1 Introduction
Obiectives oI study
Study plan
Chapter scheme

Chapter 2 Industry profile
World scenario
Indian Scenario
State scenario

Chapter 3 Company profile
About the company
Units
Product mix
Competitors
Organization structure
Balance sheet

Chapter 4 Departmental details
Personnel and administration department
Finance and accounts department
Marketing department
Design department

Materials and stores department
Production Department
Security Department
SaIety and Environment control Department

Chapter 5 SWOT Analysis

Chapter 6 Observations and Conclusions

List of tables

List of Figures & Illustrations

Chapter 1
Introduction

Introduction
An organization study is a study which gains knowledge about the overall working oI an
organization. An organization study is manly conducted to understand the various activities,
departmental structure, Iunctions, previous perIormance, Iuture plans.etc. In an
organization study data can be collected through interview, previous records, and direct
observation oI organization .etc.
An organizational study involves the study oI the structure and Iunctioning oI its
departments. Organizing is one oI the important Iunctions oI Management. Almost all the
organizations are diIIerent but they have certain common Ieatures. All are collection oI
people, linked together by Iormal and inIormal relationships. %hey have hierarchical orders
that are engaged in co-operative activities and they all have identical boundaries. So the
study oI people in organization is important Ior Iuture managers. Structure oI an
organisation is very important Ior its Iunctioning and growth. It provides the basic Irame
work Ior its progress and expansion. For Iuture managers it is imperative to study the
organisational structure and Iunctioning oI successIul organisations so that they as Iuture
managers may guide organisations towards success and proIitable Iunctioning

1.1 Objectives of the study
O %o gain an in-depth knowledge about the entire organization and to get a clear view about
the day to day Iunctioning oI the organization thereby understanding the real working
environment
O %o study about the Iunctioning oI each department oI the Iirm.
O %o know and understand how the management oI this company makes use oI the
management tools, concepts, theories and its principles in practical environment oI an
organization
O %o study the Iractional integrity and interdependence oI diIIerent departments in the Iirm.
O %o conduct a thorough study about the various strengths, weaknesses, opportunities and
threats oI the organization
O %o understand the background, present structure and Iuture prospects oI the organization.

1.2 Study Plan

Organization study was conducted at Kerala Electrical And Allied Engineering Company
Limited and it started on 2
nd
May 2011. Overall idea about the organization was given by the
Junior OIIicer (P & A).
During the Iirst week Iinancial aspects oI the company were collected Irom the Iinance
and accounts department oI the company. Asst. Finance Manager oI the company helped Ior that.
She also gave the previous year Iinancial report oI the company and also explained the Iinancial
policies oI the company. In design department Asst. Manager, %ransIormer Division Design
explained presentation oI drawing and speciIication.
Second weak, Personal and Administration and Planning department were visited. In
personal and administration department HR manager explained about HR strategies, selection
procedure, and employee allowance..etc. in planning department Asst manager explained
preparation oI work amendment and work order.
Next week materials and production section oI the company was visited. In this
department Deputy General Manager described about what really happened there. In production
department, Asst. Manager clariIied about manuIacturing activities.
Last week oI my organization study details regarding quality and assurance department
were collected. Marketing manager gave a clear picture about various marketing activities oI the
company. In quality and assurance department, Asst. Manager explained about how they ensure
quality oI their perIormance.
%he organizational study was a nice experience and it gains my knowledge about, how
company can smoothly carried out their activities.

1.3 Chapter scheme
Chapter 1
%he Iirst chapter is the introductory chapter and includes the obiective oI the study, study plan
and chapter scheme.
Chapter 2
%he second chapter is about the industrial proIile. %his chapter include the world, Indian, and
state scenario oI the industry.
Chapter 3
%he third chapter is about the company proIile. %his include business history, history oI the
company stating the obiectives and developmental stages since the inception, date oI Inception
,ownership status, number oI units with detail oI each unit, competitors ,organization structure,
Iinancial perIormance oI the company Ior the last three years, growth proIit and Iuture plan.
Chapter 4
%he Iourth chapter describes departmental details and this chapter includes each Department`s
Structure, Functions, Procedures and Policies and Programmes.
Chapter 5
%he IiIth chapter includes the strength, Weakness, opportunities and %hreat oI the company.
Chapter 6
%he sixth chapter carries the observations oI the organizational study conducted at Kerala
Electricals and Allied Engineering Company Ltd. It also include conclusion, ReIerences and
Appendix.

Chapter 2
Industry Profile

Power is a critical inIrastructure on which the socio economic development oI the
country depends. Recognizing that electricity is one oI the key drivers Ior rapid economic growth
and poverty alleviation, aIter independence Indian government has decided to bring all new
power generation, transmission and distribution in rural and urban centre under the purview oI
state and central government agencies. Accordingly State Electricity Boards were Iormed in all
states. %oday SEB`s are the maior constituents oI the power sector.
%he commercial and industrial distribution transIormers market oIIers a still developing
case study in the inIormal collaborative model Ior a national market transIormation initiative.
Despite this large economy wide savings opportunity relatively little attention has been paid to
commercial and industrial transIormer eIIiciency. For new Iacilities, expansion or renovation oI
existing Iacilities or the rare transIormer Iailure, choices exist which can provide substantial cost-
eIIective energy savings. By choosing energy eIIicient transIormers, individual commercial and
industrial Iacilities can cut total electricity bills by 0.3 to 1.5 or more with paybacks oI three
to Iive years at national average electricity rates.
Electrical ManuIactures Association, the U.S Environmental Protection Agency Iederal
purchasers represented by the Federal Energy Management Program, utility and regionally-based
energy eIIiciency program, and energy eIIiciency organization. Each oI these market actors has
played or will play a critical role in addressing speciIic market barriers.
2.1 Transformers
A transIormer is a voltage changer. %ransIormer industry is divided in to
distribution, power and other type oI transIormers. %he health oI transIormer industry depends
largely on the power generation and transmission sector. %he maior user oI this industry is the
State Electricity Boards and Industries. %he transIormer industry in India has developed Ior over
50 years and has a well matured technology base. It has the technology to manuIacture wide
range oI power transIormers, distribution transIormers and special transIormers Ior welding,
traction and Iurnaces etc. Energy eIIicient transIormers with low losses and low noise level are
also being developed to meet international requirement.
Also Indian players in the engineering segment, Ioraying in to turnkey proiects
overseas, are Iurther adding to the demand Ior transIormers. %he demand is expected to

experience double digit growth over the next Iew years. On other hand the production numbers
indicate a death in supply. %hough on a lower base the supply has grown at a rapid rate over a
longer period oI time, it seems diIIicult to match the rate oI growth in demand Ior the year ended
April 2006, production oI distribution transIormers was 65131000 KVA and 256585 other
transIormers were produced. In light oI strong demand and stringent supply, the transIormer
manuIactures are expected to enioy strong order book along with Iirm margins.
2.2 World scenario
%he growing presence oI global participants in the Indian power and distribution transIormers
market is a concern Ior local manuIactures. Understanding the importance oI private
participation Ior the growth oI the market, the Indian Govt. is actively taking steps to encourage
increased private investment. %his report analyses the worldwide markets Ior %ransIormers
(Electricity) in Millions oI US$ and units. %he speciIic product segments analyzed are Power
%ransIormers, Distribution %ransIormers.
One oI the most important developments in the global economy in the past halI century is the
enormous growth in world trade. %he growth oI the trade share oI output is probably the most
commonly used piece oI evidence to illustrate the increasingly globalize world economy. %his
growth has been dramatic, averaging 3 per year Ior past 50 years. In the time period Iirst Iocus
on 1962-99 the merchandise export share oI output tripled. %he common wisdom about the cause
oI this growth Iocuses on the worldwide reductions in trade barriers brought about by several
GA%% agreements.
%his report analyses the worldwide markets Ior %ransIormers (Electricity) in Millions oI US$.
%he speciIic product segments analyzed are Power %ransIormers, Distribution %ransIormers,
500-10000 KVA, 100001-30000 KVA, 30001-100000 KVA, and 100001 KVA. %he report
proIiles 195 companies including many key and niche players worldwide such as Areva, Areva
%&D, ASEA Brown BAOVERI, ABB Powertech %ransIormers, Bharat Heavy Eletricals
Limited, Crompton Greaves Ltd, EFACEC, Ekarat Engineering Public Company Ltd, Hammond
Power Solutions, Holec Resitra, IMP Power Ltd, Kirlosker Electrical Ltd, Kuhlman Electric Ltd.,
Nissin Electric Company, Schneider Electric SA, Siemens, Shihlin Electric & Engg Corporation,

Smit %ransIormatoren NV, %rnasIix, VA %ech Elin %ransIormatoren, and Waukesha Electric
Systems.
Rest oI World Historic Market Review Ior %ransIormers (Electricity) by product group/segment
500-10000 KVA %ransIormers, 100001-30000 KVA, 30001-100000 KVA, and 100001 KVA
%ransIormers Markets Independently analyzed with annual sales Iigures in units Ior years 2001.
2.3 Indian scenario
Heavy electrical company encompasses important industry sectors including power
generation, transmission and distribution equipments. %his also covers turbo generators, boilers,
turbines, transIormers, switch gears and relays. %he perIormance oI this industry is closely linked
to the programmes oI the country. %he government oI the country has an ambitious mission oI
'Power Ior all 2022 as per working group on the power Ior 11
th
plan; a capacity addition oI
72000MW is required. %o reach wheel power, an expansion oI the regional transmission network
and inter regional capacity to transIer power would be essential. %his will stimulate substantially
demand Ior heavy electrical equipments. %here is a strong manuIacturing base Ior the
manuIacture oI heavy electrical equipments in the country. %he technology available in India is
almost at par with in the international market barring Iew areas oI the high voltage lines.
However, items like CRGO steel and amorphous cores Ior low loss transIormers are being
important.
In India transmission and distribution system is a three tier structure comprising distribution
networks, state grids and regional grids. SEB`s are vertically integrated as intra state distribution
networks and the grids are owned and operated by SEB`s. the transmission and sub transmission
systems supply power to end consumers. Distribution oI power to end consumer is lonely
controlled SEB`s and licensees in the private sector. Most oI the interstate transmission links are
owned and operated by power Grid Corporation oI India Ltd.
%he present buoyancy in Indian economy would create demand Ior the electrical product through
industrial growth and general economic development. %he power sector reIorms will create large
business Ior power sector equipment manuIacturers and service providers. In the current
Iavorable scenario, the electrical industry certainly looks Iorward to growth. India has a Iield-
proven technology and capacity to manuIacture a wide range oI power transIormers, distribution

transIormers and other types oI special transIormers. For welding, traction, Iurnace etc. %oday,
about 95 oI the transIormers installed in the Indian Power Network are oI indigenous origin.
Energy eIIicient transIormers with low losses and low noise levels can be available to meet
international requirements. %he Indian transmission sector has evolved over time mainly on
account oI improvements in technology and systems. %he power sector reIorms are on a
threshold oI maior changes that would shape the Iuture oI industry. %he increased thrust on
providing power Ior all through building additional generation capacities, improving
transmission and distribution network would lead to a huge demand Ior power equipment
manuIacturers.
%he transIormer market in India is largely unorganized with very Iew organized players. %he key
organized players in this segment are:-
O ABB
O BHEL
O Bharat Biilee
O EMCO
O Viiay Electricals
O Crompton Greaves
O Areva %&D India
O Indo %ech %ransIormers limited
2.4 State scenario
Maior players in Kerala are:
Intrans Electro Components Pvt. Ltd. is an Electrical equipment manuIacturing Private
Limited Company, providing the entire range oI High %ension 11KV equipments Ior the
Industries and other commercial establishments. %he products manuIactured are Cast Resin
%ransIormers, Unitised Sub Stations, Load Break switch Metering Panels, Epoxy Current
%ransIormers, Potential %ransIormers and epoxy moulded components. %he company has a rich
heritage oI 25 years and is a leading brand in the Kerala Market. %he products are manuIactured
under stringent quality control standards. %o diversiIy the product range, the promoters are

putting up the second manuIacturing unit at Aluva, Cochin, Kerala, India. %o cater to the ever
growing demand in other markets an additional GreenIield plant is being established in %umkur,
Karnataka. All the leading construction groups and Iactories are the esteemed clients oI Intrans.
%he Iactory is well equipped with the latest machineries, Vacuum Oven and material handling
Iacilities to manuIacture the above products.%he testing Laboratory is Iully equipped with all
mandatory testing equipments along with Partial discharge %esting equipment and separate
source withstand %est Equipment (Power Frequency %est) up to 150KV.
Intrans %ransIormers have been tested at CPRI Bangalore Ior an impulse voltage test oI 95KV
(Peak) and all transIormers are manuIactured to that standard. Intrans employs highly skilled
workmen to manuIacture products having high quality oI workmanship.

Resi Tech has been in the activity oI manuIacturing Epoxy resin cast switch gear components,
Hi-tension current transIormer and potential transIormers Ior more than 20 years and has been
enioying a good reputation among the electrical consultancy, contractors, and industrial
establishments. %he products manuIactured are oI high standards and quality and well accepted
in the market. %he Iactory is well equipped with the latest machineries vacuum oven material
handling Iacilities to manuIacture the above products.
Add more contents

Chapter 3
Company Profile

Kerala Electrical & Allied Engineering Company Ltd. (KEL) is a multiIaceted company Iully
owned by the State government and was established in 1964. %hrough its Iive production
Iacilities, located in various districts oI the State, this ISO 9001: 2000 complaint company
provides basic engineering services / products besides executing proiects oI national
signiIicance Ior high proIile clients like the various deIence establishments.

KEL is one among the largest, most vibrant and productive Public Sector Undertaking, and is
Iully owned by the Government oI Kerala. A multi-product engineering company,
consistently catering to an envious client base, ranging Irom the army and air Iorce oI India to
world-renowned space research organizations, highly competent engineering companies to
mammoth institutions likes the Indian Railways. %he company with Iour state-oI-the-art
manuIacturing units spread across Kerala has a pan India presence with marketing oIIices in
maior metros and select cities.
3.1 Vision
%o be a globally recognised enterprise committed to enhancing stakeholder value by providing
world class engineering and power system solutions
3.2 Mission
To achieve our vision by:
O Applying state-oI-the-art technology, processes and innovative solutions
O Building long term relationship with stakeholders in an environment oI Iair business ethics
and values
O Creating value through sustainable and proIitable growth
O Leveraging productivity through highly motivated and empowered team

3.3 Units
Company has Iive manuIacturing units located in various parts oI the state.
3.3.1 KEL Train Lighting Alternator Division. Kundara. kollam
Inception: 1964
Technical knowhow: EVR oI France
Product range
a. Stanodyne Brushless alternators used Ior lightning and air conditioning oI
railways coaches.
b. 12 KW alternators specially designed Ior powering Janasadabdhi express trains oI
Indian railways.
c. Inductor type brushless alternators Ior automobiles and Ior charging systems in
diesel engines.
d. High Irequency alternator 400 Hz
e. Ground power units Ior starting and powering Boeing aircraIts.
I. DC, AC, power Irequency and high power pack Ior missile Iiring auxiliary power
support.
Top customers
a. Indian Railways,
b. BHEL,
c. Crompton Greaves Ltd.,
d. BEML, R & DE (Engineers), Pune
e. BDL Hyderabad.
3.3.2 KEL LT Switch Gear Division. Olavakkod

Inception: 1977
Technical knowhow: UNELEC oI France
Product range
a. Fuse Switches
b. Changeover Switches
c. Porcelain Fuse Units and Cutouts
d. Distribution Iuse boards and industrial type switch boards
e. Distribution Boards (SPN & %PN 2 to 16 ways)

Top customers
a. KSEB (Re-wirable Fuse Units),
b. Other Units oI KEL (Al / Bronze Castings)
3.3.3 Transformer Division. Mamala
Inception: 1969
Technical knowhow: BHEL
Product range
a. Distribution %ransIormers oI ratings upto 3,000 kVA, 33 kV class oI types such
as oil-Iilled and resin impregnated dry type; on load tap changing with Automatic
Voltage Regulation.
Top Customers
a. State Electricity Boards
b. Government Departments

c. Public and Private Sector Companies
3.3.4 Structural Engineering Division. Mamala
Inception: 1969
Product range
a. Hydraulic gates,
b. Hoists and controlling equipment.
c. Fabrication oI structural steel.
d. Railways bogies.
Major Projects Undertaken
a. Gerusoppa Dam, Karnataka Ior Karnataka Power Corp. Ltd.
Hydro-mechanical works Penstock, stoplog gate, gantry crane, hoist
b. Upper %unga, Karnataka Ior Karnataka Neeravari Nigam Ltd.
Radial gates, rope drum hoists, stoplog gate, gantry crane
c. Mansi Wakal, Udaipur, Raiasthan Ior I%D Cementation India Ltd.
Radial gates, vertical gates, stoplog gate, hoists
d. Narmada Proiect Ior J P Associates
Slide gates
e. Bogie Irames Ior BFA% Wagons Ior BEML
I. Bogie Irames Ior EMU Coaches Ior ICF
%he KEL Mamala has two production units;
1. Transformer division
2. Structural division
Transformer division has gone on stream in 1968.%he transIormer division oI KEL has been
Iacilitating the manuIacturing oI medium power transIormers.KEL is the largest producer oI

distribution transIormers in India. %he distribution and medium power transIormers produced by
KEL will have capacity up to 3000 KVA to 33KV class with an annual production capacity oI
600000KVA.KEL transIormers have acquired approvals Irom National %est House, various state
electricity boards and power corporation in India have approved the transIormers. Maior product
ranges oI this division are:-
O Oil Iilled circuit distribution transIormer
O Oil Iilled on load tap changer(OL%C).%ransIormers with automatic voltage
regulator(AVR) and remote tap changing cubicle(R%CC).
O Oil Iilled autotransIormer.
O Oil Iilled amorphous core transIormer
O Dry type transIormer(resin impregnated)
O Unitized substation with oil Iilled and dry type transIormer
Structural division Iacilitates the Iabrication, commissioning and designing oI Hydraulic
control gates and hoists Ior power and irrigation proiects, cranes, pressure vessels and other
industrial structures. %he main clients are Indian railways, Dam proiects etc. %he concerned
clients have inspected these proiects.
%he division has a team oI proIessional engineers, technicians and other employees with
adequate experience Ior perIorming, designing, Iabrication and erection.
3.4 Product range of KEL Company
3.4.1 Transformer Division m Mamala Unit
, Distribution %ransIormers oI ratings upto 3,000 kVA, 33 kV class - oI types such
as oil-Iilled and resin impregnated dry type; on load tap changing with Automatic
Voltage Regulation.
b. Future-ready Product Range: Resin Cast Dry %ype, Special Application
%ransIormers such as EMU, LOCO, Dynamic Reactive Power Compensation and
Furnace %ransIormers.

3.4.2 Structural Engineering Division m Mamala Unit.
a. Design, Iabrication and commissioning oI hydraulic gates and hoists and their
controlling equipment.
b. Design and construction oI steel bridges, Iactory buildings, storage tanks, Iabrication
oI pressure vessels and other industrial steel structures.
c. Fabrication and manuIacture oI bogie Irames, bogie bolster, head stocks Ior railway
coaches and wagons.

3.4.3 Train Lighting Alternator Division m Kundara Unit.

a. Inductor type brushless alternator Ior train lighting and air-conditioning -1 kW to
40 kW.
b. 12 kW alternators specially designed Ior powering Janashatabdi Express %rains oI
Indian Railways.
c. Inductor %ype brushless alternator Ior automobiles and Ior charging systems in
diesel engines - 12 V, 24 V upto 50 A.
d. High Irequency alternator - 400 Hz; upto 100 kVA.

e. Ground power units Ior starting Avro and Dornier aircraIts and Ior powering
Boeing aircraIts.
I. Ground Support units with dual voltage system Ior starting Iighter aircraIts.
DC, AC power Irequency and high Irequency power pack Ior missile Iiring
auxiliary power support.

3.4.4 LT Switchgear Division m Olavakkod Unit.

a. Fuse Switches
b. Changeover Switches
c. Porcelain Fuse Units and Cutouts
d. Distribution Iuse boards and industrial type switch boards
e. Distribution Boards (SPN & %PN 2 to 16 ways)
3.5 Capital Structure
KEL has 40000000 equity share oI Iace value oI Rs. 10 each. %he issue subscribed and
paid up shares is 3405937. It is Iully paid up shares. %his include 6032350 equity share
held by Kerala State Industrial Enterprises Ltd. And 317443 equity share allotted as Iully
paid up Ior consideration other than cash.
3.6 Market Potential
In all India level, KEL will be contributing to 2 need when its production is 100. In the
state level, KEL`s marketing potential is around 35-40 oI the market requirement. Further in
India, the power requirements are always on the rise. %he government has also Irom time to
time sets some targets to achieve regarding the power generation, transmission and
distribution. %his in turn boosts the market potential Ior KEL`s products.
3.7 Competitors
In the national level, the main competitors oI KEL %ransIormers are Kirloskar Bangalore,
Indotech Chennai and Cromton Greaves Chennai. In the state level, Intrans Ernakulam and
%ELK Angamaly are the main competitors.
3.8 Overseas Partnership
As a company in tune with modern technology the company have had associated with reputed
overseas manuIacturers who are experts in their respective Iields.
PRODUCT TECHNICAL KNOW HOW
General purpose brushless air conditioning
generators
MO%EURS LEROY SOMER,FRANCE

Induction brushless alternators Ior lighting
and air conditioning oI rail coaches
EVR,FRANCE
HRC Fuses UNELEC,FRANCE
Table 3.1

3.8 Projects
%he main proiects done by KEL are :-
Project Name Client Nature of work
Falcon Missile Proiect R&DE (Engrs.), Pune Vehicle mounted 62.5 kVA, 415
V, 50 Hz, 3-phase DG set
%hrisul Missile Proiect DRDO 50 kVA Dual Output DG Set
Prithvi Missile Proiect R&DE (Engrs.), Pune 2 kW, 3000 rpm DG set
Pinaka Proiect L&% 8 / 12 kW, 30 V, 400 A
Alternator
Akash Missile System BEL 75 kVA, 220 V, 400 Hz Battery
Power Source Vehicle
Military Power Car Army Battery Chargers oI Battle %anks
General Air Force 20 kVA, 415 V, 50 Hz, 3-phase
alternators
General Army 30 kVA, 220 V, 50 Hz, 3-phase
alternators
General Air Force 125 kVA, 415 V, 50 Hz, 3-phase
alternators
Radar Application Air Force 100 kVA, 220 V, 400 Hz, 3-phase
alternators
Radar Application Air Force 250 kVA, 400 V, 50 Hz, 3-phase
alternators

Power Cars oI Raidhani
& Shatabdi Express
%rains
Indian Railways 500 kVA, 750 V and 250 kVA,
750 V alternators
Ground Power Unit DeIence 70 kVA %rolley mounted Ground
Power Unit
Ground Power Unit Airlines 75 kVA, 400 Hz Ground Power
Unit Ior Boeing 737
Antartica Expedition Indian Navy 10 kW, 400 Hz, alternator
%raction Alternator BHEL / Railways 200 kW %raction Alternator
Medium Power
%ransIormer
Nuclear Power Corporaton,
Kudankulam, %amil Nadu
3000 kVA, 11/6.3 KV
%ransIormer
Medium Power
%ransIormer
%ranvancore %itanium
Products Ltd., Kerala
2000 kVA, 11/ 0.433 V OL%C
%ransIormer
Unitised Sub-station Guruvayoor Dewasom 160 kVA, Drytype packaged Sub-
station
Gerusappa Dam,
Karnataka
KPCL Hydro-mechanical works
Penstock, stoplog gate, gantry
crane, hoist
Upper %unga, Karanataka KNNL Radial gates, rope drum hoists,
stoplog gate, gantry crane
Mansi Wakal, Udaipur,
Raiasthan
I%D Cementation Radial gates, vertical gates,
stoplog gate, hoists
Narmada Proiect, Guiarat J P Associates Slide gates

Table 3.2

ORGANISATION CHART-
KEL MAMALA UNIT

I.

Fig 3.1

kMCM
kM1Mn
/kML1
kM1 kMMS
kMCA
kM1Mnu kML1u
kM1u
kM1u
kMMSu
kMMSu
kMCAu
kMCAu
kMMSu
kMMSu

II.

Fig 3.2
kMCM
kM1uS
kM1Mu
kM1Mu
kM1Mu
kM1Mu
kM1M
kM1uSu kM1uSu
kMSM/
kMLS
kMSMu
kMSM kMuS
kMLSu kMLSu kMLSu kMLSu
kMuSu
kMuSu

III.

Fig 3.3

kMlAu
kMlA kMA
kMCM
kMAu kMAu kMlAu kMlAu

Departments/ functions
KMGM - Head Mamala
KMQA - Quality/ Head quality
KMPA - Personnel and Administration/ Head P&A
KMPL% - Planning, %ransIormer Division
KMPLS - Planning, Structural Division
KM%M - %ransIormer Marketing/Head %ransIormer Marketing
KMSM - Structural Marketing/ Head Structural Marketing
KMMS - Materials/ Head materials/sub-contract, production-%ransIormer
KMFA - Finance and Accounts/Head F&A
KM%P - %ransIormer production/ Head %ransIormer production
KMSP - Production and installation/ Planning & sub-contract/ Head
Structural production
KM%DS - %ransIormer Design/ Head %ransIormer Design
KMSDS - Structural Design/ Head Structural Design
KM%MN - Maintenance/ Head Maintenance

For the purpose oI documentation, the Iollowing codes and short terms are used to
denote authorities, that prepare approve, and issue documents.

CODE DESIGNATION SHORT NAME
GM Head, Mamala KMGM
MR KMMR KMMR
QA Head, Quality KMQA
%M Head Marketing-%ransIormer KM%M
SM Head Marketing-Structural KMSM
%P Head %ransIormer- Production KM%P
SP Head Structural Production/Planning KMSP
%DS Head Design &Development-%-Div KM%DS
SDS Head Design &Development-S-Div KMSDS
%MN Head Maintenance KM%MN
PA Head Personnel &Administration KMPA
FA Head Finance & Accounts (F&A) KMFA
MS Head Materials &Stores/Sub-contract/ KMMS
Production
PL% Head Planning %-Div KMPL

Kerala Allied Electrical and Engineering Company Ltd.
Balance Sheet (Rupees)
PARTICULARS AUDITED
2006-2007

2007-08

2008-09

2009-10

I.SOURCES OF FUNDS
1. SHAREHOLDERS FUNDS
a. CAPI%AL A
b. RESERVES AND SURPLUS B

2. LOAN FUNDS
c. SECURED LOANS C
d. UNSECUERD LOANS D

TOTAL

II. APPLICATION OF FUNDS
1. FIXED ASSE%S
a. GROSS BLOCK E
b. DEPRECIA%ION
c. NE% BLOCK
d. PROJEC%S WORK IN
PROGRESS F

2. INVES%MEN%S G

713780770
36567828
750348598

209428534
265873914
475302448
1225651046

254068195
224219307
29848888

56033095
85881981

871480770
36567828
908048598

192959960
101580795
294540755
1202589353

256277942
232052307
24225635

58855338
83080973

871480770
36567828
908048598

186649000
111582058
298231058
1206279656

258277942
236184307
22093635

61355338
83448973

871480770
36567828
908048598

168603000
140083321
308686321
1216734919

264844942
239133307
25711635

61355339
87066974

3. CURREN% ASSE%S,LOANS &
ADVANCES H
LESS:CURREN% LIABILI%IES
AND PROVISIONS I
NE% CURREN% ASSE%S

4. a. DEFERRED REVENUE
EXPENDI%URE J
b. PROFI% AND LOSS A/C

TOTAL

NET WORTH P

50000

516890816

339226921
177663895

17722200
944332970

1225651846

-193984372

50000

586865504

375547194
211318310

881100
899328970

1202589353

8719628

50000

682313331

433687618
248625713

0
874154970

1206279656

33893628

50000

735589711

466158338
269431373

0
860186572

1216734919

47862026

Kerala Allied Electrical and Engineering Company Ltd.
.
Profit and Loss Account (Rupees)

PARTICULARS

SCH

AUDITED

PROVISIONAL
2006-07

2007-08 2008-09 2009-10

INCOME:
SALES, WORKS CON%RAC%,
JOB WORKS AND
MISCELLANEOUS INCOME K

INCOME/ (DECREASE) IN
S%OCKS L

TOTAL

EXPENDITURE:
MA%ERIALS CONSUMED M
IN%ERES% & BANK CHARGES N
O%HER EXPENSES O
DEPRECIA%ION E
DEFERRED REVENUE
EXPENSES WRI%%EN OFF

834691768

-83857884

751033884

378440436
44599247
343443559
12195851

8911102

1010336000

26461554

10367975554

584693000
41938000
348418454
7833000

8911100

106109000

6176000

1067195000

607370000
47729000
3739789000
4132000

8911100

1056451000

-18981000

1037470000

614007000
49094000
357451602
2949000

0

TOTAL

(LOSS)/PROFI% FOR %HE YEAR

(LOSS) BROUGH% FORWARD
FROM LAS% YEAR

(LOSS) %RANSFERRED %O
BALANCE SHEE%

787590195

-36556311

-907776659

-944332970

991793554

45004000

-944332970

-899328970

1042021000

25174000

-899328970

-874154970

1023501602

13968398

-874154970

-860186572

Chapter 4
Departmental Details

4.1 Personnel and Administration Department
%he personnel and administration department is a supporting section which plans and provides
manpower to all other subsystems oI the organization and to itselI by Iormulating proper
recruitment and training programmes. It also monitors the perIormance oI the employees Ior
better direction, promotion and results. %he personnel department is responsible Ior recruitment,
selection, placement, training, perIormance appraisal, welIare compensation and promotion.
4.1.1. Policies
i. %o establish and maintain a system Ior imparting knowledge, skill and motivation
ii. Enabling employees to carry out various tasks to achieve organizational obiectives.
iii. Impart suitable training and development to the employers as well as employees
iv. Impart training to optimize their skill and eIIiciency and to improve quality, productivity
and human relations.
%his procedure covers and action training on the iob training, training required Ior qualiIying Ior
process /saIe operations, developmental training Ior iob rotation and enlargement/ awareness oI
new concepts, quality management and quality system techniques, behavioral training and
retraining in all these area due to changes in process technology/systems/strategies.

4.1.2.Department Structure

4.1.3. Functions And Responsibilities
4.1.3.1. Functions of department
i. Arranging preventive maintenance oI oIIice activities.
Manaaer
A
Junior OIIicer Junior OIIicer

ii. Updating data on saIely and environment requirement
iii. Maintenance oI training identiIication records
iv. Procurement oI right kind and number oI persons
v. Co-ordination with other department/Iunction Ior sponsoring employees training
vi. In-house training management.
vii. Employee welIare measures as per approved scheme/agreements
viii. Industrial relations
ix. Execution oI all policies related to personnel Iunction.
x. Manpower planning
xi. Maintenance oI personal Iiles/records
xii. Issue circulation on training and other personnel matters.
xiii. Correspondence with external bodies on statutory compliance
xiv. Insurance matters on land, building, materials and products.
xv. General insurance including employees medical and accidents insurance
xvi. Promotion oI employees as per policy and as per agreements.
xvii. Sanctioning oI annual increments to employees, keeping records and registers
4.1.3.2. Functions of Manager
i. Personnel planning Ior the Iuture
ii. Proper utilization oI resources
iii. Preparation oI training schedules
iv. Organizing by setting up the structure oI relationship among iobs, personnel and physical
Iactors to contribute towards organization goals.
v. Mobilization oI talented personnel
vi. Determination oI adequate and equitable compensation to employees.
vii. Ensure smooth running oI business without any grievance
viii. Provide good working conditions and welIare services to employees.
ix. Ensure growth and development
4.1.3.3 Functions of junior officer
i. Legal matters, keeping records oI cases at diIIerent court etc.

ii. Mediclaim recording, claim settlement with united India Insurance Company
correspondence with insurance department.

4.1.3.4. Clerk
i. %ime keeping and recording oI oIIicers, staII, apprentices and temporary employees
ii. Arrangements oI taxi, preparation oI bills etc.
iii. Arrangement oI remittance oI tax, insurance oI co-vehicles.
iv. Issuing gate passes to contract workers
v. Remittance oI contribution, maintenance oI all records
vi. Reports oI accidents, recording, keeping register.
vii. Intimation oI recovery/ attachment oI salary by courts/Kerala State Financial Enterprise/
bank etc.
viii. Issue oI certiIicates
ix. Leave surrendering, keeping records
x. Preparation oI alternate bonus
xi. Canteen recovery and recording
4.1.4. Programmes and procedure
4.1.4.1. Recruitment
Recruitment is the process oI searching Ior prospective employees and stimulating them to apply
Ior iobs in the organization. For this, the company has adopted diIIerent methods. KEL is having
a Centralized Recruitment System. %he recruitment and selection proceedings are conducted at
the head oIIice oI the company. %he main advantage is
i. It ensures eIIective and suitable placement oI candidates
ii. %he cost oI recruitment per candidate
iii. Unit managers will not be disturbed by this type oI recruitment.
%he company has diIIerent methods Ior recruitment. %he main sources are:

1. Advertisement
%he maior recruitment is done through the advertisement. %he advertisements are given
in local or national press, trade or proIessional iournals. %he recruitment oI the iob is
given in the advertisement. Management gets a wider range oI candidates Ior selection
through the advertisement.

2. Employment exchange
%he company has also recruited employees through this method. %he vacancies may be
noticed with the exchange, whenever there is a need. %he exchange supplies a list oI
candidate IulIilling required qualiIication.

3. Public Service Commission
Some oI the staII`s such as iunior assistant, Ioreman, stenographer, driver etc. are Iilled
through the test conducted by the Public Service Commission among the eligible
candidates. Commission notiIies speciIic vacancies by the way oI newspapers,
employment news.

4. Trade unions
%he KEL Mamala has also recruited employees and staII through the mutual agreement
between the trade union and management. %here are three recognized unions in KEL,
they are KEL Employee Congress, KEL Employees Union and KEL Employee
Association.

4.1.4.2 Selection and training
4.1.4.2.1 Selection
'Selection is the process oI diIIerentiating between applicants in order to identiIy (and hire)
those with a greater likelihood oI success in a iob. %he head oIIice oI the company selects the
right person Irom the advertisement. %he criterion Ior evaluation is perIormance, experience and
qualiIication oI the candidates. AIter that the interview is conducted on the basis oI the result oI
interview, the selection is made.

4.1.4.2.2 Training
'%raining is the act oI increasing the knowledge and skill oI an employee Ior doing a particular
iob. In KEL Mamala two types oI training are given to employees
1. On the iob training: Given to the clerical and other staII`s
2. OII the iob training: Given to the managerial staII and workers oI the production plant.
4.1.4.3 Transfer and Promotion
Transfer
%he selected staII can be transIerred to diIIerent units, where the staII is needed. %he transIer
does not involve any change in rank. It involves shiIting oI persons Irom the present iobs to other
similar places or diIIerent places in the same iob. %his does not involve any change in
responsibility and prestige. %ransIer and promotion are dealt by the head oIIice. %ransIerred
promotions are done on the basis oI the mutual agreement between the union and management.
%ransIer and promotion will be made against vacant posts whenever suitable candidates with the
prescribed qualiIication and experience are available within the organization. But when the
suitable candidates are not available, then the post will be Iilled up Irom the external source.
While oIIering promotion to higher post, reservations are made Ior SC/S%.
Promotion
It involves shiIting oI persons to position carrying better prestige, higher responsibility and more
salaries. %he higher positions may be Iilled up Irom within the organization. It is purely made on
the basis oI perIormance, qualiIication and experience. Seniority is also an inevitable Iactor.
%here is a promotion policy Ior the company. It is usually Ior oIIicers.

4.1.4.4 Performance appraisal system
PerIormance appraisal includes the identiIication, measurement and management oI human
perIormance in organization. Assessment and motivation can motivate the workers to improve
their perIormance. But in this organization there is no type oI perIormance appraisal system Ior
employees at lower levels. OIIicers are given promotions according to the promotion policy
rather than perIormance.
4.1.4.5 Shift timings
%he shiIt timings oI employees in KEL are:
i. Administration StaII
On week days- 9.30 AM 4.30PM
On Saturdays 9.30 AM 12.30PM
ii. Employees in the production department
On week days 12.30 AM - 8.30AM
8.00AM - 4.30PM
4.30 PM - 12.30AM
On Saturdays
8.00AM 1.00 PM
1.00 PM 4.30 PM
4.1.4.6 Punishment and misconduct
An employee guilty oI misconduct may given any one oI the Iollowing punishments depending
upon then gravity oI the misconduct.
i. Warning
ii. Stoppage oI increment
iii. Withheld oI Iuture promotion or grade
iv. Discharge Irom the service
v. Dismissal
%he Iollowing shall be the procedure Ior punishment

A charge sheet will be given to the employee concerned and he will be asked to give his
explanation in case oI alleged misconduct primaIacie appears to be oI a serious nature,
suspension pending enquiry. In other case the management will decide whether a Iormal enquiry
should be conducted, and iI the decision is Ior an enquiry it will be conducted. %he management
on receipt oI the explanation, issue notice to the receipt or in the absence oI the reply or the
expiry oI the date by which the reply is called Ior, the management will pass suitable orders.
%his process will be applicable only in cases were punishments are either reduction oI rank,
removal, or dismissal. In other cases, the management shall pass such orders which may be
appropriate on receipt oI the employee`s explanation.
4.1.4.7 Manpower
%he company has 101 skilled workers, 52 semi skilled workers, 12 special skilled workers. StaII
and security are 44 and 43 managerial persons as on 31
st
march 2011.

4.2 Finance and Accounts Department
Finance department regulates the Iinancial transactions oI the company. %he Iinance Iunction
provides authorization and control to all the subsystem to utilize money more eIIiciently through
a well designed mechanism the company prepares proIit and loss accounts, balance sheet,
budgets, Iinancial perIormance statement, and employee cost analysis etc. Ior the Iindings oI the
operating results, Iinancial positions, Iuture prospects and many oI other obiects. Statement oI
operating results derives the perIormance oI transactions. %his reveals the probability oI the
concern during the year. %he proIit oI the company increases year aIter year.
4.2.1 Department Structure

4.2.2. Functions of finance department
Finance department oI the company constitute the accounts and administration and cash
management.
i. Auditing and Iinalization oI works with the assistance oI all other members oI Iinance
department.
ii. All the accounts relating to personal.
iii. Accounting oI purchase bill.
iv. Preparation oI payrolls.
v. Accounting oI bank and cash transactions
vi. Calculation oI central excise
AssL Manaaer
Executive Iinance
Asst Accounts
oIIicer
Asst Accounts
OIIicer

vii. Sales accounting and sales tax matters.
4.2.3. Functions of finance manager
i. Estimation oI capital requirements
ii. Ensuring a Iair return to the investors
iii. Make sure the suitable availability oI Iunds
iv. Laying down the optimum and suitable capital structure Ior the company
v. Adequate control oI cash Ilows.
vi. Preparation, analysis and interpretation oI Iinancial statements
vii. Facilitate maximum utilization oI Iund
viii. Scrutinize claims and recommend payment
ix. Issue oI invoices against dispatches
4.2.4. Programmes and Procedure
4.2.4.1. Accounting policies of the company
1. Accounting conventions
%he Iinancial statements are prepared under historical cost convention on accrual basis
and in compliance with the Companies Act 1956
2. Fixed Assets
Fixed assets are stated at cost less depreciation. Assets and liabilities are consistently
being recorded at historical cost.
3. Depreciation
a. Depreciation on Iixed assets has been provided as per the rate indicated in
schedule XIV oI the company`s act 1956 under written down value method.
b. Extra shiIt depreciation Ior double shiIt working has been provided in the
account.
c. Depreciation on Iixed assets in respect to the proiect work in progress has not
been kept in abeyance as per government direction.
4. Inventories

a. Finished goods are valued at cost or market price, whichever is less Ior arriving at
the cost and excise duty is also taken into consideration.
b. Work-in-progress is valued at the cost aIter considering overheads excluding
Iinancial charges.
c. Raw materials, material in progress, spare, stores and loose tolls are valued at
cost, cost means weighted average.
d. Scraps are valued in realizable value.
e. Goods in transit are valued at cost.
5. Sales
a. Sales compromise sale oI goods and service and includes Excise duty
b. Price valuation claims on sales aIIected are accounted Ior on accrual basis
c. %he reprocessed transIormer oil is accounted at current purchase prices by crediting
the diIIerence to miscellaneous income.
6. Consumption
a. Loose tools issued to shop Iloor are treated as consumed and written oII as such.
b. Consumption oI materials Ior production is completed on a derived basis
7. Retirement benefits
Gratuity and leave encashment are accounted Ior on accrual basis in compliance with
accounting standards. %he amount was determined on the basis oI actuarial valuation
conducted at the end oI the year. As non cumulative portion oI leave encashment is not
applicable to the company the same is not considered.
8. Liability on material in transit
%he liability on account oI the bank charges and other expenses on materials in transit on
the date oI closing is accounted on accrual basis.
9. Research and development
Capital expenditure on research and development is treated as addition to Iixed asset and
revenue expenditure on R & D is charged to proIit and loss account under appropriate
heads in the year in which it is incurred.
10.Contingent liability
Contingent liabilities are not provided Ior, but disclosed in note on accounts.

4.2.4.2. Accounts and documents
%he company shall in compliance with sec.209 oI the company Act clause to keep proper books
oI accounts with respect to:
i. All sums oI money received and spent by the company and matters with respect to which
the receipt and expenditure take place.
ii. All sales and purchase oI goods by the company
iii. %he assets and liabilities oI the company.
4.2.4.3. Sources and uses of funds
%he Iinance manger oI the company collects Iunds through the sales oI the product Irom the head
oIIice and other sources. %he unit manager has a limit to deal with the Iund, which is limited to
Rs. 2000000 over the limit he needs the permission Irom the corporate oIIice oI the company.
Payroll or salary administration is an inevitable Iactor oI the Iinance department. %he salary
administration is conducted in two ways
i. For employees and clerical staII under Industrial Dispute Act
ii. For managerial staII under Kerala Government Department rule 3.
For employees and clerical staff under ID Act.
%he salary oI employees includes basic pay, dearness, Fringe beneIits (Attendance allowance or
milk allowance), night shiIt allowance, washing allowance, risk allowance and over time
allowance. %he net result Iorms the 'gross salary.
Fringe beneIits are the allowance which includes the attendance allowance/milk allowance. It is
available to the employees based on the agreement between management and trade union. %he
period oI agreement is Iour years. For the Iringe beneIit attendance is taken Irom 16
th
oI the
month to the 15
th
oI the next month. Working time per day is 8 hours. Charges oI attendance
allowance are Rs.2.50 per day Ior an employee.
In the calculation oI basic pay and dearness allowance, the attendance is taken Irom the 1
st
day oI
the month to 31
st
oI the month. Basic pay is based on the salary scale oI the company. Dearness

allowance is an industrial dearness allowance or variable dearness allowance. It means, DA is
changing every month. %his change depends upon the point diIIers every month and also, it is
diIIerent to various companies and diIIerent units oI the same company. Rs.5 is charged Ior per
point
Over time allowance (O%) is provide to the employees, who undertake the over time work. For
the calculation oI overtime, the attendance is taken as the 16
th
oI the month to 15
th
oI the next
month. Working time per day is 8 hours. %he over time charge is calculated by using the
Iollowing Iormulae:
(Basic pay DA x 2*30)/(30 days * 8 hrs)
a. Provident fund(PF)
According to the PF Act 1952, the PF contribution is deducted Irom the gross salary. Both
the employee and the employer pay 4.75 oI his wages (i.e. basic pay and DA). %his PF
contribution is Iorwarded to PF department.
b. Employees State Insurance(ESI)
%he ESI is contribution scheme, with the employer paying 4.75 oI wages and the employee
contribution is 1.75 oI wages to the Iund. %he ESI Iacility avail the employees who has the
salary up to Rs. 6500 per month. %he employee contribution is 1.755 oI the gross salary-
washing allowance.
%he net salary Ior employees and clerical staII by way deducting the total deduction Irom the
gross salary i.e.. Net salary Gross Salary- total deduction
For managerial staff
%he salary scale and DA is Iixed Ior managerial staII based on Ker5al Government Department
Rule. When the government declares certain rate oI DA to managerial staII, this will be
distributed aIter the recognition oI board oI directors. II the board the permits to the distribution
oI DA, then that will be distributed to the managerial staII. Gross salary Ior managerial staII
includes the basic pay, DA and HRA. %he deductions are made available to managerial staII in
the manner as oI the employees and clerical staII. i.e., Gross salary total deductions

4.2. Marketing
KEL has adopted general Ieature oI marketing. %he product segment is directly connected with
the customers: KEL displays advertisements in certain electrical iournals only. %hey have
reorganized regional centers in the various maior cities. It also captures orders through
canvassing order Ior it.
4.3.1. Policy
'%o establish and maintain a process and procedure to obtain orders by identiIying customer
requirement regarding products and service
4.3.2. Department structure

4.3.3. Functions of marketing department

i. Evolve adequate marketing policy.
ii. Ensure the availability oI required orders.
iii. Make competitive prices
iv. Make sure the payment beIore dispatching the product.
v. Provide aIter sales services to the clients.
vi. Ensure the optimum utilization oI resources available to the company.
vii. Reviewing enquiries, traders, contracts and contract amendments.
viii. Communicating with customers
ix. Coordinating servicing
x. Maintaining invoice register
4.3.4. Functions of DGM marketing
i. Developing customer base
ii. Reviewing enquiries, tenders, contracts and contract amendments
iii. Communicating with customers
iv. Internal communication on contract requirements
v. Payment collection co-ordination
vi. Coordinating servicing
vii. Maintenance oI transIormers during guarantee period Iailure
viii. Servicing oI transIormer aIter guarantee period against customer requirement
ix. Prepare level B and level C documents
x. Prepare contract amendment review reports
xi. Prepare order acceptance/quotation
xii. Prepare sale order/ sale order amendment
xiii. Prepare estimate Ior tendering
xiv. Prepare maintenance/ servicing reports
xv. Maintain invoice register
xvi. Register and resolve customer complaints through designated channels
xvii. Initiate corrective and preventive actions

4.3.5. Programmes and procedures
4.3.5.1. Marketing process
%he KEL collects the tenders Irom newspapers with speciIications. AIter collecting tenders,
KEL prepares tenders document. %his document will be Iorwarded to the Design Department.
%he company approves the tenders up to 25 lakhs. Above 25 lakhs, the head oIIice sanction or
approval is required Ior the tender acceptance. AIter, this the unit submit competitors quotation
with company's Iavor. II the submitted quotation is the best, they get the tenders.
%hen the company issues an order acceptance letter to the customers. AIter this, the marketing
department that take part in production. Based on this letter, the design department prepares
structural design and process design transIormers. %he material department purchases or issues
materials to production Iloor or to store. %hen the production is started.
At the end oI the completion oI the production transIormers, Inspection and Dispatch Iunction
are carried down. Sometimes, private customers like %ata %ea, Bombay Suburban Electrical
Ltd; Eastern Curry Powder etc. conduct inspection at the production Iloor aIter the completion
oI the production. %hen the dispatch is carried out with the speciIication oI the tenders. %he
company also provides aIter sales services.
%he company guarantees the product Ior a period oI 12 months Irom the date oI
commissioning or 18 months Irom the dispatch whichever is earlier. AIter this period, the
company will provide services on chargeable basis. %he company charges Rs.1500/- per head
Ior a day.

4.3.5.2. Marketing network
KEL`s products are marketed by extensive networks oI marketing oIIicials located in all the
maior cities like New Delhi, Mumbai, Kolkata, and Bangalore etc. they provide all support
services to the sales and marketing service to guarantee complete customer satisIaction. %he
KEL has a wide network oI regional oIIices, services and business centers located in most oI
the maior cities in India Ior eIIective marketing, and providing eIIicient aIter sales service.

4.4. Design Department
%he design department draws the structural design oI the product processes Ior the production
department. Based on this design the transIormer is produced with the speciIication oI the
customer.
4.4.1.Policy
'%o establish and maintain a process Ior an optimum design conIorming to customer requirement
and relevant standards within a speciIied time
4.4.2.Functions performed by the design department
i. Receipt the sale order Irom transIormer marketing
ii. %o ensure that the standards oI the design
iii. Receipt oI tender documents Irom the transIormer marketing
iv. %o ensure that the competition oI design work within a speciIied period oI time.
v. %o ensure that the changes are adopted Irom time to time
vi. Established and maintain the process Ior the design work within a speciIied period oI
time.
vii. Ensure that the Ieed back Iorwarded to transIormer production section.
viii. Design planning, controlling and responsibility assignment, input and design storage
reviews.
ix. Authorizing, designing, veriIication and initiating design changes
x. Assign responsibility Ior designing
xi. Approve design outputs
Functional objectives
O Reduction oI design errors and re-work
O Computerization oI the design work at least by 25 and subsequent improvement.
4.4.3.Functions of DGM Design
i. Design control
ii. Design planning and responsibility assignment
iii. Design input and design stage reviews

iv. Authorizing design veriIication
v. Initiating design changes
vi. Quality design personnel
vii. Sign design plan
viii. Participate in contract review
ix. Assign responsibility Ior designing
x. Authorize review (veriIication oI outputs)
xi. Approve design outputs
xii. Assign product codes
xiii. InterIace customer Ior design validation
xiv. Release speciIication and drawings
xv. Prepare activity completion record
xvi. Control drawing issues
4.4.4.Programmes and procedures
4.4.4.1. Design process
O Obtain tender document Irom transIormer marketing.
O Obtain estimates and technical speciIications Irom the transIormer marketing.
Design I stage: Preliminary design for marketing quotation
O Study the speciIications oI the product included in speciIic tender received Irom the
marketing department.
O Obtain current price oI raw materials and components Irom material department.
O Make estimates Ior the product as per the technical speciIication Iurnished by the
marketing department.
O Send the cost and guaranteed technical speciIications to the marketing department Ior
tendering purposes.
Design II stage: Actual design of product
O Receipt oI sale order Irom transIormer marketing department
O Issue oI advance intimation to production planning
O Make the detailed design oI transIormers and drawings as per the order

O Issue oI production drawings, speciIication and list oI drawings to planning
O Feed back Irom the transIormer production section to design on time to time Ior
manuIacturing the product with customer speciIication
O Feedback oI test result Irom quality assurance test is normally conducted in the
presents oI the customer consultant or representative. %est results are to be recorded
and kept in a Iile Ior Iuture reIerence by the design department.
O Design change intimation to planning Irom design

4.5. Material and Stores Department
KEL has a Material and Stores Department which purchases the materials Ior the company`s
production. %his department is also known as Purchase Department. %he main Iunction oI this
department is to make the purchase that is required Ior the production and administrative
department.
4.5.1.Policy
i. %o establish and maintain the process oI procurement oI right material and services, at
right time and at right price Irom approved vendors as per the production requirement and
those oI customers.
4.5.2.Objectives
i. %o reduce interruption oI production due to delay in supply oI material.
ii. %o reduce the purchase cost.
%he Material Department ensures that good quality materials are purchased at reasonable price.
%he company has an ideal material control system. KEL Iollows the ABC analysis Ior the control
oI materials. 'A' items are very important, because oI the high value and Irequent value analysis
are required to avoid excess capacity. `B` items (intergroup items) are less important than A`
items. C` value items are those which require minimum control maintained at the minimum
stock level.
4.5.3.Department structure

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4.5.4.Functions of materials and stores department
i. Sub-contractors approval and codiIication
ii. Purchase oI material
iii. Storage and preservation oI purchased materials
iv. Ensuring re-inspection oI store and products
v. Release oI purchase order amendments
vi. Control receipts and issue oI materials
vii. Prepare monthly inventory statement

4.5.5.Functions of Deputy General Manager

i. Receive the Purchase Requisition and initiating enquiries.
ii. VeriIication oI sub-contractors evaluation report.
iii. Preparing Purchase Committee proposals Ior items purchased to be approved by
Corporate OIIice.
iv. Preparation oI purchase orders and veriIication with the checklist and Iollow up with
supplier.
v. IdentiIy the items Ior cash purchase.
vi. Discharge material stores responsibility in his absence.
vii. VeriIication oI invoices and bills Irom suppliers.
4.5.6.Functions of Manager
i. Issue oI materials.
ii. Counting/weighing oI material received/issued.
4.5.7.Functions of Clerk
i. Preparation oI enquiries and receiving oIIers.
ii. Preparation oI comparative statements, purchase committee proposals Ior items to be
approved by the purchase committee.
iii. Maintaining Purchase Committee Approval Register.
iv. Initiating purchase orders and Iollows up with the local suppliers.
v. Coordinating with stores.
vi. VeriIication oI suppliers` invoice/bills and recommending payment.

4.5.8.Functions of Stores in charge
i. VeriIication oI documents such as lorry receipts, invoices transport copies oI
invoices.
ii. Receipts oI materials.
iii. VeriIication oI quantity.
iv. Preparation oI Goods Received Note.
v. Intimating Quality and Assurance Ior incoming inspection and testing.
vi. Intimate suppliers on reiections/short supply/excess supply.
vii. Maintenance oI all Stores Registers.
viii. Planning storage oI materials with proper identiIication.
ix. IdentiIying shelI liIe item requiring inspection and preparing report on this Ior
Quality and Assurance inspection.
x. Correlation oI documents in the case oI supplier is replacing a reiected lot/supply
materials in batches Ior the same purchase order.
xi. Preparation oI monthly inventory statement.
4.5.9.Programmes and procedure
4.5.9.1. Purchase procedure
Material purchase
1. Maintenance and structural division maintains and updates a master list oI purchased
products/services within the scope oI this procedure. Such lists are approved by material
department.
2. Material department documents and maintain purchasing requirements as guidelines duly
approved by the general manager.
3. Purchase is made Irom sub-contractors approved as per quality speciIication1.
4. Where purchases are required to be made Irom sub-contractors not within the approved
lists, such lists are approved by the General Manager through waiver notes.
5. Purchase activity is initiated against purchase requisition/purchase notice Iorm user
departments.

6. Purchase requisition is raised in respect oI requirements speciIic to the production and
purchase notice is raised in respect oI standard products Ior which reorder level are
identiIied.
7. %he mode oI purchasing such as inviting quotation and bid evaluation or direct purchase
is based on the documented purchasing requirements guidelines.
8. Purchase is authorized by a committee consisting oI GM, Material Finance and Accounts
and the user department`s representatives. Depending on the assigned authority in relation
to value, where required the authorization obtained Irom the corporate oIIice through
Purchase Approval Form.
9. %he particulars oI purchase committee approval are maintained in the Purchase
Committee Approval Register.
10. On Iinalizing purchase on the basis oI guidelines/authorization, purchase order is raised
and purchasing data is veriIied Ior their correctness by the designed personnel in the
department.
11. A purchase order check list is prepared in evidence oI veriIying the purchasing data.
12. %he purchase order is made in 6 copies. %he copies are made available to Material,
Quality Assurance, and Finance and Accounts Department. %wo copies are Ior retention
with Maintenance and Structural division.
13. %he purchasing activities such as release oI purchase orders, progress in supply oI
products and results oI receiving veriIication are recorded and monitored with the aid oI
Purchase Monitoring Register Ior all purchase made in the structural divisions and Ior
purchase oI lamination, conductor and radiator and current %ransIormer Division.
14. %he purchase order is raised in respect oI purchase against already made authorization.
15. Cash purchases are made without raising Purchase Orders, limiting value to Rs.5000 on
approval oI requisition cash purchases by materials.
16. Purchases by sub contracting process are made on the basis oI quality speciIication.
17. VeriIication oI sub contracted iobs items are carried out by the sub contractor`s premises
where so required.
18. %he veriIication oI purchased product is carried out as per quality speciIication and work
instructions. When required contractually, customer is provided Iacility to veriIy
purchased product at sub contractor`s premises or company premises.

19.%he purchase order released to sub-contractors clariIy veriIication requirement either oI
Quality Assurance or customer or customer`s agents. It is also clariIied to sub contractor
that veriIication by Quality Assurance/customer doesn`t absolve the sub-contractor oI his
responsibility to provide acceptable product as well as company`s right and Iurther veriIy
products even aIter acceptance on receiving inspection and testing. Where purchase order
is required to be amended, either a purchase order amendment or a superseding purchase
order is issued with same number oI copies and distribution as in above description.

Material receipt. storage preservation and issue Procedure:-

1. Stores in charge receive copies oI purchase orders Irom materials.
2. On receiving materials against purchase orders, the accompanying documents such as
Lorry Receipt, Invoice, %ransport copy oI Invoice where applicable, %est certiIicates and
Bill oI Entry in case oI imports are veriIied by store keeper and it Iound in order, items
are received and entered in the Goods Receipt Register.
3. Security permits the carriers in to the company premises on veriIication oI document and
entering the veriIied details in the Register.
4. On receiving the %ransIormer Oil %anker, the store keeper prepares Goods Received
Note (GRN) and passes to Quality Assurance. Only aIter it is passed by Quality
Assurance, the oil is unloaded.
5. In respect oI other materials, storekeeper prepares GRN prior to inspection.
6. All received items are accounted as per Goods Receipts Register.
7. GRN prepared in 6 copies. 5 copies will send to Quality Assurance Ior carrying out
inspection and testing and endorsement oI results.
8. Quality Assurance endorses the test status; retain 1 copy and Iorward 4 copies to store in
charge.
9. Materials received as barrels/drums, cartons carboys, bag, bundles, rolls,
sheets/rods/Ilats are handled either manually or using cranes. Mechanical handling is
controlled with the aid oI work instructions.
10.Oil received in tankers is transIerred to identiIy storage tanks by pipelines.
11.All material are secured as per storage plan, updated and authorized by materials.
12.Materials are stored in sub-stores attached to each production area.

13. %he storage plan indicates locations oI storage area oI steel items on open yard, oil in
tanks and sub-stores.
14. %he identiIication/status oI iust received materials, passed/reiected materials and NC
procedures are as per quality speciIication.
15. %he non-conIorming materials are controlled as per quality speciIication.
16. Only materials passed in receiving inspection are taken in to KARDEX.
17. Items held in storage Ior more than the speciIied period are subiected to re-inspection
and testing as per work instructions Ior re-testing oI stored products prepared by
materials.
18. %he preservation oI product in storage is achieved by speciIying appropriate controls
and application oI preservation as documented by Quality Assurance issues oI stored
items to the user departments/sub-contracted production is made against stores
requisition/loan rate.
19. %he expiry date, where applicable is veriIied prior to issue.
20. %he quality oI %ransIormer oil held in tanks is assessed reIerring KARDEX/Stock and
Issue Register.
21. Excess quality returns to the stores by used departments are accompanied with Store
Return Note, Ior accounting in the KARDEX.
22. Items taken out Ior processes are returned and controlled with returnable gate pass/gate
pass Ior lob work.
23. Where stock is held in stores below the minimum/re-order level, purchase activities are
initiated by stores in charge.
24. A monthly inventory statement is prepared and sent to Planning/Production/Finance and
Account.
25. %he activities oI handling, storage, identiIication, control oI non-conIorming products
and issue oI materials under positive recall procedure are carried out as per work
instruction.

Various records of materials department
1. Purchase Requisition

2. Purchase Notice
3. Purchase Order
4. Purchase Order Checklist
5. Purchase Order Amendments
6. Purchase Approval Form
7. Cash Purchase Approval Register
8. Purchase Committee Approval Register
9. Purchase Monitoring Register

4.6. Production Department
%he KEL Mamala has one production department. It holds two department section, which are
Planning section and Quality Assurance section. %he company has two production units which
are 1.%ransIormer Unit and 2.Structural unit.
4.6.1.Department structure (Transformer division)


i. Production planning
ii. Material planning
iii. Monitoring progress against work order
iv. Reporting on achievements
v. Issue work orders
vi. Issue work order amendments
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vii. Co-ordinate release oI drawings and bill oI materials
O Analyze day-to-day production activities.
O Scheduling oI work in advance.
O Work output with the agreed work norms.
4.6.4.Functions of Engineer
O VeriIy production records on daily basis.
O Complement the activities oI charge in hands.
O Forwarding oI work allocation aIter veriIication and entering.
O Arranging all types oI maintenance machines.
4.6.5.Functions of Charge in hands
O Daily work arrangements.
O Maintenance oI production records.
O Arranging materials in advance as per production scheduled.
O Arranging inspection by QA personnel wherever necessary.
O Storing oI raw materials.
4.6.6.Functions of Operators
O Production operators as per work norms.
O Proper handling oI materials.
O IdentiIication oI product at various levels.

4.6.7.Department structure (Structural division)

i. Overall management oI the respective division
ii. IdentiIying resource requirements
iii. Review oI non conIorming products
iv. IdentiIying installation processes and control
v. Scheduling production
vi. IdentiIying training needs oI those reporting to them
vii. Assigning personnel process wise
viii. Maintaining working environment including saIety operations
ix. Providing workmanship samples
x. Controlling production processes
xi. Corrective and preventive actions
xii. Statistical techniques
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xiii. Servicing during deIect liability period and carrying out repairs against customer request
i. Receiving work order and allocate works to charge in hands.
ii. Coordinating with planning and design department to get clariIication
iii. Achieving production targets
4.6.10. Functions of Assistant manager
i. Arranging work shiIt Ior carrying out the work.
ii. Monitoring records and upkeep oI quality system in the shop.
iii. Preparation oI weekly production report.
4.6.11. Functions of Assistant engineer
i. EIIective utilization oI manpower working under them on day-to-day.
ii. Reporting any problem aIIecting adversely to the production.
Process inspection oI components preparing under the control.
4.6.12.Charge hands
%he eIIective utilization oI the men and machine under their control.
Drawing oI the raw materials Irom stores Ior the week.
Reporting oI daily/ weekly production in time.
; %he proper Ieedback, iI any problem connected with the drawings/ production etc which
adversely aIIect the production.
4.6.13.Planning section
%he planning section holds the Iundamental Iunction oI planning Ior production. In this section,
planning Ior each stage in transIormer production is planned based on sale order Irom marketing
and design department. %he design department designs the stages Ior transIormer division. %he
materials department provided the materials in connection with sale order Irom marketing. %hus
the transIormer is produced is produced in a planned method.
4.6.13.1. Policy
'%o plan, organize and co-ordinate the activities to achieve the planned production within the set
time Irame to the needs oI the organisation.
4.6.13.2. Functional objectives
i. %o avoid production delay due to procedure problem.

ii. %o reduce inventory carrying cost with respect to turnover.
iii. %o increase material availability with respect to turnover.
4.6.13.3. Major functions
Transformer Division
i. Raise purchase requisition
ii. Issue work order
iii. Materials Iollow up
iv. Production monitoring
Structural Division
i. Production planning
ii. Material planning
iii. Shortlist sub-contractors
iv. Preparation oI work order and amendment and maintenance oI work order and
drawing Issue Register
v. Monitoring oI Purchase Requisition
vi. Initiating Purchase Requisition
vii. Updating and preparation oI monthly production chart Ior the year
viii. Float enquiries Ior sub-contract oI site work required Ior production and prepare
comparative statement
ix. Preparation oI work order
x. Maintenance oI sub contracted product monitoring
4.6.13.4. Planning procedure
Transformer Division
i. On the basis oI the running contracts in hand and orders received, planning
%ransIormer Division Department prepares a tentative production plan Ior each
month on the basis oI priority identiIied and discussed with General Manager
indicating production planned cost and due date oI delivery in respect oI each
proiect. Copies oI each plan are made available to GM, Finance and Accounts
Department, Production %ransIormer Division Department, Materials Department
and Design Department.
ii. On receipt oI sale order copy relating to new orders, production plan revise Ior the
month is prepared indicating material quantity and their value copies oI the revised
monthly plan are made available by the authorities.

iii. On receipt oI bill oI materials (advance inIormation) and drawings Irom design
purchase requisition is prepared as a measure oI advance material planning and
copy provided to material department. Purchase Requisition Iollow up Register
monitors the Ilow oI purchase.
iv. Based on the sale order drawings and bills oI materials, work order is prepared
indicating particulars oI customer sale order number, drawing reIerences
operations and work to be completed.
v. %he issue oI work order is controlled with the aid oI Work Order Issue Register.
vi. Work order amendments based on material change or other deviations will clear by
design department and issued where required and copies distributed.
vii. Issue oI drawings to shop Iloor and sub-contract is co-ordinate and controlled by
planning with aid oI Drawing Issue Register.

Structural Division
i. On the basis oI running proiect or hand planning structured document budgetary plan
Ior the year indicating proiect wise materials and their value Ior inIormation oI GM
and Design manager.
ii. A tentative production plan is raised in each quarter on the basis oI priority identiIied
and discussed with GM. Planning Structural Division made a plan indicating months
production are planned, cost and Iind requirement in respect oI each proiect copies oI
plan are made available to GM, Finance and Accounts Department, Planning-
structural Division and Stores Department.
iii. On receipt oI sale order copy relating to new proiects, production plan Ior the month
is prepared indicating material quantity and the value.
iv. On receipt oI bill oI materials and drawings Irom design department, Purchase
Requisition is prepared as a measure oI advance material planning and copy is
provided to monitoring through a Purchase Requisition Iollow up Register.
v. On the basis oI sale order, drawings and bill oI material and work order is prepared
indicating particulars oI customer sale order no:, Drawing reIerence, operation and
work to be completed. %he reverse site oI that work order provides Iacility Ior
production oI raw materials Irom time to time.

vi. %he issuance oI work order is contracted with the width oI work order Register.
vii. Work order amendments on the basis oI material change or other deviations as
clearly by design.
viii. At the close oI each week, a weekly production report is prepared and copies made to
planning structural division and Finance and Accounts Department Ior monitoring.
ix. For the purpose oI Iacilitating the Iinancial audit a Register titled Production Ior the
month is prepared by Planning Structural Division, that production inIormation on
proiect use total, quantity and value.
x. Dispatches, work-in progress, cumulative sales and work-in progress at the end oI
the month.
xi. Planning Structural Division documents order position is taken Ior the whole year in
a register. Monthly chart is also prepared Ior comparative statistical proiection oI
varieties in achievements during diIIerent oI year.
xii. Short Ialls in achievements again analyzed and inputs provided Ior corrective and
preventive action by Planning Structural Division.

4.6.14.Quality assurance section
4.6.14.1. Policy
'%o establish and maintain a quality system which will ensure incoming materials, in process
sub-assemblies and Iinished products conIorming to the speciIication.
4.6.14.2. Functional objectives
O Reduction in quality related customer complaints aIter delivery oI the product.
4.6.14.3. Structure

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4.6.14.4. Functions of the section
O Arranging incoming material inspection as per quality plan
O Arranging in process inspection at the SpeciIied Quality Assurance Checkpoints
O Arranging testing oI Iinished goods at the Iactory or at site as and when required
O VeriIying and preparing consignment Audit Report
O Arrange calibration oI equipment either house/with external agencies
O Accepted and sign Goods Received Note Ior goods conIorming to speciIication
O Issue non-conIorming reports
O Sign observation sheets and certiIicates
O Sign and issue assembly inspection reported and consigned audit report
O Incoming materials inspection at the speciIied Quality Assurance Check points
O Final testing oI transIormer
O Conducting consigned audit reports
4.6.14.5. Functions of Manager
O IdentiIying resources Ior inspection and testing
O Planning requirements Ior quality
O Planning requirements Ior inspection and measurement
O Calibration monitoring, corrective and preventive action
O Statistical techniques
O Propose approval oI sub-contractors
O Audit production sub contractors
O Carry out subcontractor perIormance evaluation
O IdentiIying non conIorming products
O Stop Iurther processing oI in process non conIorming products
O Release products to customers

4.6.14.6. Functions of Assistant manager
O Accept and sign Goods Received Note Ior goods conIorming to speciIication
O Issue non conIorming reports
O Sign observation sheets and test certiIicates
O Sign and issue assembly inspection reported and consigned report
4.6.14.7. Functions of Charge in hand/supervisor
O Incoming materials inspection as per quality plan
O In process inspection at the speciIied Quality Assurance Check points
O Final testing oI transIormer
O Conducting consigned audit reports
4.6.15. Programmes and procedure
1. ReIer Goods received note in respect oI received products as a call Ior receiving
inspection and testing.
2. Inspection and test requisition is received Irom materials stores in respect oI materials
held in store Ior more than the speciIied shelI liIe.
3. On the basis oI Goods Received Note requisition, sampling and testing oI speciIic
materials are carried out by personnel as assigned by Quality Assurance.
4. %he responsible assigned person drawn samples and carries out testing as per work
instruction.
5. %he extent and nature oI receiving inspection and testing is determined on the basis oI the
class oI sub-contractors and availability oI test certiIicates.
6. %he result oI inspection and testing are recorded in Incoming Inspection report. %he
sample sizes characterize to be veriIied and acceptance criteria adopted as per Quality
Assurance personnel endorses the results on Goods Received note/Requisition.
7. In case results do not conIorm to requirements a product non-conIormity record is revised
in triplicate and 2 copies Iorwarded to material stores.
8. II required General Manager as per assigned authority at the instance oI material stores
reviews the nature oI non-conIormity and permits deviation by endorsing accepted on the
Product non-conIormity Record.
9. II deviation is not permitted, REJEC%ED status is assigned and Reiection Note sends to
the sub-contractor with a copy to Finance and Accounts Departments.

10.%he customer supplied products are subiected to receiving inspection and testing in the
same manner as above unsuitable products are returned to customer under intimation.
11.Materials held in storage beyond speciIied shelI liIe are re-inspected and tested as per
work instructions.
Production process and procedure
Transformer division
Process
KEL manuIactures distribution transIormers and medium power transIormers with the
capacity oI 600000KVM. %ransIormer Division has diIIerent stages in manuIacturing
transIormers. In each stage one charge in hand controls the activities in that particular
process. %he diIIerent stages are:
Core Building
In this stage the Irame is cut in the shape oI E`. Silicon steel is cutting with the E shape Ior
Irame Iabrication.

Insulation and Assembly
%he insulation are done in core building, HV winding and LV winding. %he press board is
used Ior insulation work. Insulation helps to overcome the occurrence oI short circuit.

HV winding
%he conductors are used Ior the high voltage coil winding. %he conductor is wounded or
insulated with Double Paper Grade Strip. HV winding produces high voltage. %he high
voltage electricity has to be transmitted to distribution.

LV winding
Here also conductors are used. Low voltage coil are wound with double paper grade strip.
%his strip reduces the possibility oI short circuit. %his coil consists oI low voltage electricity
which comes Irom outside. In real process the IXth stage is core coil assembly. %he core
assembly, HV winding and LV winding are assembled in this stage.

Terminal Gear Mounting
%he LV winding terminals are Iixed in to a bush. %he terminal gear is built with copper or
aluminum.

Tanking
%he Iabrication tank has been made available through sub-contract or manuIacturing the
structural unit. %he dried %G mounted coils are put in the tank. %hen the tank has to be Iilled
with oil. %hen tightening take place.

Final Testing
When the production process is completed, Iinal test conducted by company supervisor.

Painting and Dispatching
%he Iinal stage is painting and dispatching the transIormer. Sometimes, in this stage customer
can also inspect the transIormer. AIter the payment is made by the customer, dispatching the
transIormer is done as the speciIication oI the tender.
Production infrastructure
%he inIrastructure needed to design, manuIacture and install products as per customer
requirements are identiIied and provided. InIrastructure includes building, utilities, machines,
inspection and testing devices, standards and codes, soItware and supporting devices. Preventive
maintenance and upkeep oI inIrastructure is done Ior ensuring the capability oI the inIrastructure
to meet the customer requirements. When there is a breakdown occurs, immediate corrective
action will take. All statutory and regulatory requirements regarding the manuIacturing and
installation oI products and environmental regulations are duly compiled.
Procedure
1. On the basis oI production plan Ior the month initially provided and update
Irom time to time Irom by Planning %ransIormer Division based on work orders
provided.

2. %he materials required Ior the production held in material stores are drawn by
producing the Stores Requisition against work order.
3. %he wage oI loading oI materials and sequence oI production operation are
carried out as speciIied in the process sheets/assembly checked sheet.
4. Operations oI machine/production process including settings and Iirst oI
approval are controlled with the work instructions and by utilizing personnel oI
required skills.
5. Updated master list oI personnel with specialized skill are approved by
Planning %ransIormer Division are maintained by Production %ransIormer
Division.
6. Production and labor allocation sheets duplicate are prepared and issue shiIt
wise daily to assign qualiIied personnel in relation to process.
7. Drawings/speciIications based on the work order are drawn Irom design and
reIerenced during process:. Application codes and standards are reIerenced and
Iollowed.
8. %he particulars oI shiIt production are recorded in the production and labor
Iorm, indicating the operator, operation carried out and the production output
including labor time. A copy oI the Iorm is Iorwarded to Planning %ransIormer
Division Ior monitoring productivity.
9. Stages Ior in-process inspection and tests are identiIied and carried out by
Quality Assurance against assembly check sheet inspection and test status is
assigned.
10. Daily production details are recorded in a daily Iinished goods register
indicating work order wise production Iigures.
11. Details oI monthly production at various stages are recorded in production
program Ior taking corrective action to maintain production.
12. On completion oI Iinal assembly testing and painting and on receipt oI dispatch
advice Irom %ransIormer Marketing, products are dispatched by preparing the
delivery chelan.
13. Dispatches are accounted and monitored through a Dispatch Register indicating
customers` name oI work order, data and mode oI dispatching items authorized
by Quality Assurance are dispatched.
14. Achievements oI dispatches are received against plans short Ialls iI any
analyzed Ior corrective and preventive action.

TRANSFORMER PRODUCTION PROCESS- FLOW CHART

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Structural division

In this division, there are several machines. In each machine one gang is working. One
gang contains three workers. %hese three workers are controlled by one charge in hand. A
gang involves one welder, one Iitter and one unskilled worker. %he machine and its
products are given:

1. Gear Hobbling Machine- it is used Ior gear cutting.
2. Milling Machine- slots, plane milling etc used Ior cutting
3. Lath Machine- Ior Iorming thread.
4. Vending Machine- used Ior 12 mm pipe bending.
5. Gillette Machine- Ior cutting the plate up to 12 mm.
6. Press Breaker Machine- plates blending 90 degree the capacity up to 12mm.
7. Drilling Machine- used Ior drilling the plates.
8. Mug welding- it is used Ior welding.
Process
a) Marking
b) Cutting
c) Drilling
d) Bending
e) Setting
I) Welding
g) SurIace preparation
h) Straightening
i) Painting
i) keeping

Production Procedure
1. On the basis oI production plan Ior the month initially provided and update Irom time
to time Irom by Planning %ransIormer Division based on work orders provided.
2. %he materials required Ior the production held in material stores are drawn by
producing the Stores Requisition against work order.
3. %he wage oI loading oI materials and sequence oI production operation are carried out
as speciIied in the process sheets/assembly checked sheet.
4. Operations oI machine/production process including settings and Iirst oI approval are
controlled with the work instructions and by utilizing personnel oI required skills.
5. Updated master list oI personnel with specialized skill are approved by Planning
%ransIormer Division are maintained by Production %ransIormer Division.
6. Production and labor allocation sheets duplicate are prepared and issue shiIt wise daily
to assign qualiIied personnel in relation to process.
7. Drawings/speciIications based on the work order are drawn Irom design and
reIerenced during process:. Application codes and standards are reIerenced and
Iollowed.
8. %he particulars oI shiIt production are recorded in the production and labor Iorm,
indicating the operator, operation carried out and the production output including
labor time. A copy oI the Iorm is Iorwarded to Planning %ransIormer Division Ior
monitoring productivity.
9. Stages Ior in-process inspection and tests are identiIied and carried out by Quality
Assurance against assembly check sheet inspection and test status is assigned.
10. Daily production details are recorded in a daily Iinished goods register indicating
work order wise production Iigures.
11. Details oI monthly production at various stages are recorded in production program
Ior taking corrective action to maintain production.
12. On completion oI Iinal assembly testing and painting and on receipt oI dispatch advice
Irom %ransIormer Marketing, products are dispatched by preparing the delivery
chelan.

13. Dispatches are accounted and monitored through a Dispatch Register indicating
customers` name oI work order, data and mode oI dispatching items authorized by
Quality Assurance are dispatched.
14. On the basis oI customer speciIied installation plan indicating the date by which
materials including tools and tackles Ior diIIerent stages oI erection should reach the
site.
15. Copies oI the plan are to planning Structural Division, Design Department and
Material Department.
16. %he tentative installation plan is received at intervals oI 6 months the plan updated.
17. %he site requirements are identiIied and documented by planning Structural Division
as site requirement document. %he document is reviewed and approved.
18. %he site required document indicate size oI temporary structures, manpower tools and
tackles, consumables and sub-contracted workmen/ security personnel required Ior
installation at diIIerent Irame.
19. Actual movement oI tools, tackles and materials Ior installation is commenced on
receipt oI conIirmation Irom material stores department about the civil work
completion and clearance Irom customer Ior commencement oI installation work.
20. %he materials held at site are adequately protected Irom deterioration, properly stored
and their stock issue is controlled by the site personnel designated by Production
Structural Division.
21. Handlings oI materials at site are done using validated equipments and observing
saIety requirements.
22. Site status report is prepared by site engineer and Iorwarded to Production Structural
Division and Material Stores.
23. Installation at each stage is controlled with the aid oI installed check sheets.
24. On completion oI installation the structure is handed over to customer only aIter ioint
inspection by customer designated person/ agency and by site engineer.

PRODUCTION PROCESS- FLOW CHART (STRUCTURAL)

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4.7. Security Department
%here is an In house security department in the KEL, Mamala unit. %he security department is
under Personnel and Administrative Department and the Security head reports to Manager, P &
A.
%here are 9 security staIIs, oI which 3 are permanent and 6 are temporary. %he temporary staIIs
are appointed Irom the District Sank Board on contract basis. %he contract period is usually 6
months.

4.8. Safety and Environmental Control
%his procedure is indented to ensure saIety status oI operating machines and equipment
installation to maintain saIe working practices. Manager P&A, KEL Mamala unit holds Iull
responsibility Ior the operation oI this procedure.
Work Environment
%he work environment requirements regarding products should be maintained. %he saIety rules
and practice in the shop and Iloor is determined and maintained. Personnel protective equipments
are made available and employees are trained and made aware oI the importance oI using them.
Basic Iacility to drinking water, sanitation and rest rooms are provided. Maintenance and upkeep
oI the environment is done by respective departments.
Machines. Equipments and Electrical Installations
1. Maintenance department maintain an updated list oI pressure vessels or liIting
equipments as authorized by the production department with the preview oI saIety
maintenance.
2. %he pressure vessels are prudently maintained and got certiIied by the designated
authority oI inspectorate oI the Iactories as per regulation.
3. Cranes, hoists and chain pulley blocks are inspected once in a year by an agency
approved by inspectorate oI Iactories and test certiIicates are maintained.
4. Electrical equipments are inspected annually by the electrical inspector and deIects
rectiIied by the licensed conductor.
Personnel safety
i. Employees working in hazardous area or activity in Iactory, use or more saIety gadgets
namely helmets, saIety shoes, apron, gloves, and saIety belts.
ii. Visitors when permitted to enter the Iactory work area provided with saIety gadgets
needed as appropriate.
iii. Persons working on rooI and structure use saIety belts compulsorily.
iv. Personnel and administration monitors and ensures that saIety requirements are compiled
with personnel.

Fire and safety
i. Material in storage or process area are prone to Iire are identiIied speciIically and the
type oI Iire extinguishers needed to deal with these are listed.
ii. Location wise requirements oI Iire extinguishers are maintained by personnel and
administration.
iii. Fire extinguishers are checked at speciIied intervals and reIille or replaced when
necessary.

Chapter 5
S.W.O.T Analysis

A detailed study has been conducted in order to analyze the strength, weakness,
opportunities and threats oI the organization.
5.1 Strength of the company

i. It has a good company background.
ii. It has got ISO 9001 and 2000 Ior quality.
iii. It consists oI highly qualiIied personnel.
iv. It provides an inevitable and valuable service to society.
v. It has a good inIrastructural Iacility.
vi. %here is a direct control Irom the Kerala govt.
vii. It ensures quality oI the product.
viii. It maintains good industrial relation.
ix. %he company manuIactures good product without any delay.
x. %he company increases the proIit year aIter year.
5.2. Weakness of the company
i. Adequate controls oI material are not adopted.
ii. Modern technology and machines are not adopted.
iii. %he company has not adopted the new method oI accounting.
iv. Less number oI qualiIied personnel in some areas.
Delay in decision making
vi. Lack oI perIormance appraisal system

Opportunities
i. Extend market to Ioreign countries.
ii. It has an opportunity with regards to adopt new technology in production.
iii. Opportunity to adopt new methods oI accounting.
iv. %he company has an opportunity to buy quality materials and to maintain an
eIIective material control.

Threats
i. Competition Irom private enterprises is the maior threats to the company.
ii. Govt. regulations and Ioreign exchange Iluctuations.
iii. Absenteeism is another threat Ior the organization

%he above depicted SWO% ANALYSIS reveals the cause oI unsatisIactory perIormances
and possibility oI Iuture progress.

Make it more elaborative

.

Chapter 6
Observations and Conclusions

Observations
O %he sales oI the Iirm is increasing year by year
O Company provides satisIactory wages to the employees
O Company gives prime importance to quality.
O %he net worth oI the Iirm is increasing every year.
O Company has a good team oI management and technical staII.
O Company has good brand equity
O Healthy employee employer relationship exist in the Iirm
O No pollution problem
O Company conducts social welIare activities
Conclusions
O %he company should improve its sales promotional activities.
O Give more worker participation in decision making process
O Company should request Iinancial assistance Irom the government Ior avoiding
cumulative loss.
O %he company should be more competitive against private Iirms.
O Adequate control oI material is necessary.
O Company has to adopt new technology in production.
O Minimize the core loss oI current.
%he Kerala Electrical and Allied Engineering Company Ltd. , is being one oI the biggest public
limited companies in the state oI Kerala, is doing great help to the nation by providing very
important and essential equipment to various industrial concerns and various electricity boards in
India. Company has got ISO 9000, 2000 etc. Ior its excellent Iunctioning. %he experienced group
oI directors, eIIicient management team and highly dedicated employees are the most precious
blessing oI the company.

Company should be in touch with the market with the market and customers through researchers
to monitor the changes taking place in the market. %hrough this the Iirm shall achieve much
more in the coming years.
%he Iuture will no doubt witness a more competitive environment coupled with the dynamic and
vibrant sector, the company has to rise up to occasion to be successIul in Iuture years to come.

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An Organisational Study Conducted at

KERALA ELECTRICAL AND ALLIED ENGINEERING COMPANY LTD.

4.6.2.Functions of Deputy General Manager

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