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Introduction
Organizations play major role all over the world. Different organizations meet people needs and provide them with product, service or both. Due to globalization the world has become a global village. This has very much helped people to get their needs. Different firm play different role and has its own importance for my study. I have chosen O/E/N India ltd.
O/E/N is the market leader for Electromechanical Components. Manufacturing plants are located in the suburbs of Cochin and Bangalore with over 11,000 square meters of factory space. We offer a comprehensive range of products with applications in most segments of Electronic Industry including Communications, Automotive, Strategic Industrial Controls, Instrumentation and Consumer Electronics. The quality management systems of the company is covered by ISO 9001 and ISO/TS 16949 Certification. Factory infrastructure include fabrication plant for pressed parts, plastic moulded parts, electroplating facilities, Research & Development Laboratory, sophisticated Tool Room and Quality Assurance & Test Labs. Apart from regular production, O/E/N offers facilities for contract manufacturing and already exports considerable volumes.
We are the customer link to the future. We help turn/transform customer concepts to product applications. We create made to order products, to customer specifications. The hard earned reputation for quality products & services has helped us enhance customer base. Clients choose O/E/N and stay with us because we provide world class technical and reliable support. Customer care and satisfaction is part and parcel of our work culture. We nurture continuous innovation, team work, employee involvement and stay focused on customer needs. We have successfully established customer loyalty by working towards establishing lesser gap between customer wants and products/services we deliver. In fact, O/E/N is the virtual supplier of Electromechanical Components.
1.5 Methodology
Both primary and secondary data was used for the study. The limitations of secondary data are applicable in this study also. The sources of these data are given below:
Source of data
a) Primary source Primary data was collected by interviewing the managers and other personnels in the organization. b) Secondary source Secondary data was obtained from the Company Journals, Company Brochures,Survey Reports, Publications, Websites, Annual Reports. The study was conducted in three phases: The first phase involved collecting information from various manuals, reports, articles etc which were provided by the O/E/N India ltd regarding the origin, facilities available in the company and brief on its activities and functions. The second phase involved the interviewing heads and other staffs for understanding the activities of each department, its structure and the role played by each of them.
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The third phase involved visiting operational site of various departments. The main aim of the visit was to obtain a physical feel of the department and observe the activities performed by it and its importance to the whole of the organization.
1.10 Chapterization
A. INTRODUCTION B. INDUSTRY PROFILE C. COMPANY PROFILE D. DEPARTMENTS E. SWOT ANALYSIS F.SUMMARY AND CONCLUSION
2. INDUSTRY PROFILE
The Electronics Industry in India took off around 1965 with an orientation towards space and defense technologies. This was rigidly controlled and initiated by the government. This was followed by developments in consumer electronics mainly with transistor radios, Black & White TV, Calculators and other audio products. Color Televisions soon followed. In 1982-a significant year in the history of television in India - the government allowed thousands of color TV sets to be imported into the country to coincide with the broadcast of Asian Games in New Delhi. 1985 saw the advent of Computers and Telephone exchanges, which were succeeded by Digital Exchanges in 1988. The period between 1984 and 1990 was the golden period for electronics during which the industry witnessed continuous and rapid growth. From 1991 onwards, there was first an economic crises triggered by the Gulf War which was followed by political and economic uncertainties within the country. Pressure on the electronics industry remained though growth and developments have continued with digitalization in all sectors, and more recently the trend towards convergence of technologies. After the software boom in mid 1990s India's focus shifted to software while the hardware sector was treated with indifference by successive governments. Moreover the steep fall in custom tariffs made the hardware sector suddenly vulnerable to international competition. In 1997 the ITA agreement was signed at the WTO where India committed itself to total elimination of all customs duties on IT hardware by 2005. In the subsequent years, a number of companies turned sick and had to be closed down. At the same time companies like Moser Baer, Samtel Colour, Celetronix etc. have made a mark globally.
India is also an exporter of a vast range of electronic components and products for the following segments: Display technologies Entertainment electronics Optical Storage devices Passive components Electromechanical components Telecom equipment Transmission & Signaling equipment Semiconductor designing Electronic Manufacturing Services (EMS) The growing Indian market for electronic products is over US$25 Billion and is growing at about 30% per annum. At this rate it is projected to exceed US$ 70 Billion by 2010 and US$158 Billion by 2015. This growth has attracted global players to India and leaders like Solectron, Flextronics, Jabil, Nokia, Elcoteq and many more have made large investments to
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access the Indian market. In consumer electronics Korean companies such as LG and Samsung have made commitments by establishing large manufacturing facilities and now enjoy a significant share in the growing market for products such as Televisions, CD/DVD Players, Audio equipment and other entertainment products. The growth in telecom products demand has been breathtaking and India is adding 2million mobile phone users every month! With telecom penetration of around 10%, this growth is expected to continue at least over the next decade. Penetration levels in other high growth products are equally and growth in demand for Computer/ IT products, auto electronics, medical, industrial, as well as consumer electronics is equally brisk. Combined with low penetration levels and the Indian economy growing at an impressive 7% per annum, the projection of a US$150 Billion market is quite realistic and offers an excellent opportunity to electronics players worldwide.
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3. Company Profile
Mr. K.A Mathew, a prodigy whose sole leadership capability paved way for the creation and growth of O/E/N proved the importance and influence of the electronic industry in India. He piloted the firm through its thick and thin and later launched other companies O/E/N Micro Systems Ltd and O/E/N Connectors Ltd. Oak Electro Netics India Ltd was established in 1968. O/E/N is the market leader for electro-mechanical components. Manufacturing plants are located in the suburbs of Cochin and Bangalore with over 11,000 square meters of factory space. The company offers a wide range of products with application s in most segments of electronic industry including communications, automotive, instrumentation and consumer electronics. The quality management systems of the company are covered by ISO 9001: 2000 certification. Factory infrastructure includes fabrication plant for pressed parts, plastic molded parts, electroplating facilities, research and development lab, sophisticated tool room and quality assurance and test labs. Apart from regular production O/E/N offers facilities for contract manufacturing and already exports considerable volumes. O/E/N has the customer links to the future. The firm helps to turn and transform customer concepts to product applications. They create made-to-order products to satisfy customer specifications. The hard earned reputation for quality products and services has helped the company enhance its customer base. Clients choose O/E/N and stay with them because it provides world class technical and reliable support. Customer care and satisfaction is part and parcel of O/E/Ns work culture. O/E/N nurtures continuous innovation, team work, employee involvement and stay focused on customer needs. They have successfully established customer loyalty by working towards reducing the gap between customer demand and product/service delivery rate. In fact, O/E/N is the virtual supplier of Electro-mechanical components. OEN is the market leader in the country for relays and switches used in the electronic industry. The main plant was set up in 1968 at Mulanthuruthy, a suburb of Cochin. The second plant was established in 1983 in Peenya, Bangalore. The factories at Electrogiri and Peenya have a combined built up area of over 14918sq.m comprising of fully air conditioned
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assembly plants, well integrated pre-production support, molding shop and highly developed plating lines. The quality management systems of the company are covered by ISO9001:2000 and the automotive product lines are additionally covered by ISO/TS 16949:2002 approvals. The company is committed to the protection of the environment and optimum utilization of resources. The firm has received ISO 14001:1996 certification for its Environment Management System and OH SAS 18001:1999 certification for its Occupational Health and Safety Management System.
3.2 History
O/E/N India Ltd. was formed in 1968 as a joint venture with OAK Electro/Netics Corporation, U.S.A under the leadership of founder M.D, Late Mr. K.A Mathew. At the inception, 45% of theequity shares were held by OAK Industries Inc, U.S.A and 25% by Kerala State Industrial Development Corporation and the balance primarily by the directors and their associates. The abbreviation O/E/N was devised out of the name of the collaborator. The OAK group was a pioneer in the field of professional grade rotary switches, keyboards, and push button switches, miniature and power relays, miniature trimmer potentiometers, controls and control systems serving many segments of electronic industries- appliances, manufacturing, industrial, aerospace, military and other fields. Until O/E/N India went into production, entire
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requirements of the country for these products were being imported from the U.S and the U.K. The major customers for these products were Indian PSUs like BHEL, HAL, ISRO, DRDO, HMT, etc. The company started with OAK designs and eventually added new designs in due course. Thecompany reached its break even in 1970 and declared its first dividend in the year 1973. In 1980,the company started a sister concern O/E/N Micro Systems to take up manufacturing of computer peripherals and in 1984 O/E/N Connectors India Ltd. in collaboration with FCIConnectors, France. By 1985, the company set its second manufacturing plant in Peenya, Bangaloru. Till 1990s the company was enjoying a monopoly in the market with no competition from the local businesses. However with the liberalization policy of the 90s, the company was forced to face severe competition from the global brands. It took some time for the company to react and change itself from the slow pace culture generated by the monopolistic leadership to that of a flexible innovation culture needed in the midst of a competitive market. The growth of the company was dampened though losses were avoided. Unable to change with the times, O/E/N Microsystems was forced to be closed after enviable years of growth in the startup period and closed down in the year of 2001. The company was subsequently merged to the parent company in 2003. FCI also increased its share in O/E/N Connectors to 51% and then to 65% in 1996. The company realizing the faults reinstated its position in the early 2000s entering into tie-ups and technological transfer agreements with major global players to bridge the technological gap. The company had invested in enriching its core competency in electromechanical sub systems development and had entered into contract manufacturing. The policy changes reflected more emphasis on value addition and value creation. (Note: The initial collaborator M/S OAK Electro/Netics Corporation was subsequently renamed as OAK industries Inc. The brand OAK is no more and the equity held by OAK was bought back by the company in a phased manner.)
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FORMATION OF O/E/N. COMMENCEMENT OF PRODUCTION. MAIDEN DIVIDEND WAS DECLARED. QA LAB EXPANDED WITH SOPHISTICATED TOOL EQUIPMENTS. STARTED IN-HOUSE TOOL ROOM. FCI CONNECTORS STARTED. SECOND PLANT OF O/E/N WAS SET UP; LOCATED IN PEENYA; AN INDUSTRIAL SUBURB OF BANGALORE IN THE STATE OF KARNATAKA.
1993
BECOME AN ISO 9002 COMPANY; SECOND SUCH COMPANY IN KERALA TO ACHIEVE THIS.
2001
2003
O/E/N BECOMES THE FIRST EVER COMPANY IN KERALA TO BE CERTIFIED AGAINST MOST SOUGHT AFTER INTERNATIONAL QUALITY SYSTEM STANDARD ISO/TS 16949-2002.
ISO 14001:1996 & OHSAS 18001:1999 WERE ACHIEVED. ACHIEVED A TURN OVER OF 47 CRORES. Q1 CERTIFICATION FROM FORD INDIA.
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O/E/N was set up in 1968, when the then MD, K.A Mathew collaborated with the American Company called OAK electronics. The venture started off with the production of switches and later in 1970 with that of relays. They earned the right name and popularity that in 71 they received orders from Indian defense. The notable achievement was in 1973 when the company produced switches for Rs. 37.17 lakhs and relays for Rs. 50.6 lakhs. This definitely called for more orders and bookings for switches in July 74 was recorded for Rs. 1.7 million. Tremendous sales later demanded the need for computers in the marketing department to facilitate bulk transactions. In 1984, the company set up its second factory in Peenya, Bangalore which marked another step to success. And the firm also won Productivity Award in the same year. But November 21st 1986 gave the biggest loss to the company. Mr. K A Mathew passed away at the age of 66years, leaving the entire responsibilities to Ms. Sarah Mathew who became the Managing Director thereafter. In 1992, Ms. Pamela Anna Mathew took over the position and successfully led the company henceforth. It is a company wholly run by the family and has not been listed on the stock exchanges. O/E/N was awarded the ISO 9001:2000 certification in 1992 for excellence in quality and it is the first electromechanical company in Kerala to receive the certification.
3.7 Bankers
Bank of India Centurion Bank of Punjab
3.9 Vision
Centre for technological excellence.
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Employment is fairly long term. This will help develop a loyal semi permanent work force. Evolution and promotion of the personal is usually very slow. Big promotion is generally not given out of years. Decisions making had been carried out via group decision making. Control is very implicit and informal; people rely heavily on trust and goodwill. Responsibility is assigned as on individual basis. Organization is concerned with whole life of the workers, business and approvals.
O/E/N India Limited established in 1968. Market Leader in Electro-Mechanical components-relays, switches, trimmer potentiometers etc; Facilities located in suburbs of Cochin & Bangalore. 11,000 square meter factory space. Products find application in Communication, Automotive, Strategic Industrial Controls, Consumer Electronics, and Instrumentation etc; ISO 9001:2000 Certified and a variety of end use product approvals. Any organization exists with the ultimate aim of making profit by producing and offering products or services. Thus the products itself forms an integral part of the organizational system around which the rest of the sub system function. Most of the companys products are covered by relevant industrial, defense or telecommunications approvals and are manufactured to the relevant standards. Following is the product range of the organization
Relays
O/E/N concentrates mainly on relays. Different types of relays are manufactured here. O/E/N relay are used in sectors like automobile, telecommunication, defense, power device
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etc. relays are differentiated based on materials used, temperature and pressure with standing capacity, electrical parameters etc. the types of relays manufactured are, R-type relays W-type relays Auto relays Cradle relays PC relays Flat rack relay Miniature PCB relays Electromechanical power relays Telecommunication relays Reed relays Reem type relays
Switches
O/E/N assembles switches for UK based company. They give the components and parts required to assemble and O/E/N does the labour work and exports the finished products to UK. The types of switches manufactured are: A M switches J switches M switches HM switches Toggle switches Sniper switches Rotary wafer switches Key board switches Rocker switches
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Potentiometers
O/E/N manufactures wire wound type and ceramic type potentiometers. It is used in electronic circuits for getting desired voltage drops. And they are mainly used in micro processors, computer chips etc. Its production is usually less compared to that of other products. The potentiometers manufactured are: Wire wound trimming potentiometers Non wire wound trimming potentiometers
Collimators
This product developed in house is manufactured in a special room called the white room. This expensive product is used in X-ray machines to regulate the X-ray beams. The chief customer for this product is GE, a US firm.
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4 5 6 7
8 9 10
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1991
12 13 14
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Indian Institute of Materials Management (1st prize in Stores Cleanliness Competition in Medium scale Industry) National Safety Council Of India- (Kerala Chapter) Industrial Safety Award (for achieving the lowest frequency rate of accident) National Safety Council Of India- (Kerala Chapter) Industrial Safety Award (for achieving the lowest frequency rate of accident) Certification by TUV Management Service GmbH for ISO/TS 16949:2002 Certification by TUV Management Service GmbH for ISO/TS 16949:2000 Certification by M/s KPMG for ISO 14001:1996
2003 2003
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2004
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Valid till 13th May 06 Valid till May 06 Valid till 1st July 07 Valid till 1st July 07 2006
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Certification by M/s KPMG for ISO 18001:1999 National Safety Council Of India- (Kerala Chapter) Industrial Safety Award (for achieving the lowest frequency rate of accident)
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PRODUCTI ON DEPT
R&D DEPT
MATERIA L DEPT
ASSE MBL Y
FABRICATIO N
TOOL ROOM
PURCHASE
PROD. PLANNING
STORE
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O/E/N India ltd was established in 1968 with the collaboration of an American company called OAK Electronics. Mr.K.A Mathew was the managing director. Started with the production of switches. In 1970 company started production of relays. Company got order from Indian defense in 1971. O/E/N micro systems dispatched first consignment on September 1982. In 1973, company produced switches for Rs. 37.17 lakhs and relays for Rs.50.60 lakhs. Order booking for switches in July 1974 was a record for Rs.1.7 million. In 1979 marketing department was installed with computers. June 1984 O/E/N started factory at Peenya, Bangalore. O/E/N won productivity award in October 1984. 21st November 1986 was a black day for O/E/N India, Mr.K.A Mathew passed away at the age of 66. Suresh Mathew becomes the managing director of O/E/N on 1986 December. In 1990 Mrs. Pamela Anna Mathew became the Managing Director. In 1992 O/E/N got ISO 9001:2000 certification.
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As at 31.03.2011 Rs.
As at 31.03.2010 Rs.
50992600 326048025
377040625
50992600 313098967
364091567
2.Loan Funds a) Secured loans. b) Unsecured loans 3.Deferred tax liability 31490546 23859348
55349894
5992891 26260032
32252923
26809729
20793605
459200248
417138095
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1. Fixed Assets a) Gross block b) Less: depreciation c) Net block d) Capital work in progress 2.Investments 3. Current Assets, Loans & Advances a) Inventories b) Sundry debtors c) Cash & bank balances d) Other current Assets e) Loans & advances
285264712
240330419
544010
544010
173391526
176263666
Total
459200248
417138095
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Current Assets: Current Assets, Loans & Advances Less: Current Liabilities& provisions Net current Assets
222.720
219.757
242.942
247.181
289.482
275.741
260.276
100.084 122.636
Investments Miscellaneous Expenditure Total Assets(Net) Less: what the company owned Borrowings: From bank From financial institution From others Total Borrowings Deferred Tax Liability Net Worth
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4. Departmental Details
Departments of O/E/N
The plant has the following departments. Human Resource Department Finance Department Marketing Department Research and Development Department Purchase / Materials Department Quality Assurance Department Production Planning Department Production department Tool Room Department Fabrication and Electroplating Department Assembling Department Engineering Service Department Process Engineering Department General Service Department
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MANAGER WELFARE
SECURITY OFFICER
HRD OFFICE
CANTEEN CONTRACTO RS
HOUSE KEEPING
FIRST AID
DRIVERS
SECURITY, WATCHMEN
CANTEEN WORKERS
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Functions such as these described below are of have the prime importance in all organizations. In O/E/N the HR Department takes over the functions except on job training and advice on others.
Recruitment
At O/E/N, recruitment is closely held except for high level executive posts. Department find out the candidates through advertisement, personal records, companys data book, external agencies. Usually for the post of operators and other non executive posts O/E/N do not generate any recruitment advertisement. Nepotism is widely practiced.
Selection
It is done through a series of steps. Firstly department will carry the preliminary interview by telegram or by letter telegram etc and ranking them according to their performance. After preparing shortlist, they were call for final interview. Department also check the reference provided by the candidates and arrange for test. Then evaluating the performance, prepare the selection list and get approved by the Managing Director.
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Appointment
Department sends appointment letter to candidates. After medical examination, department will start the re-verification of certificates, and covering new entrant in PF, ESI, health and accident insurance by filling up requisite forms and getting employees sign.
Employee Relations
The department is responsible for management relation with the employee unions and also for negotiating and signing of agreements on salary and benefits, bonus, promotion, productivity etc. At O/E/N there are three trade unions. They are: CITU INTUC Independent Union
Among executives there is a union called no Party Affiliated Executive Welfare Forum.
Grievances Handling
For handling grievances, O/E/N has the following committees. HR committee Safety committee Canteen committee Welfare committee Suggestion committee House loan committee Security services
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Welfare Activities
The welfare activities in O/E/N India Limited includes PF,ESI,WC benefits, Employee health and safety, Accident and hospitalization insurance, Medical examination (Done once in every year). Welfare funds are created for the benefit of the employees. Canteen food is provided at subsidized rate. Employee transportation is provided where bus service between Mulanthuruthy and Ernakulam on a regular basis.
department also identifies the employees who require the training and the selected employees are given special training.
Personal Administration
The department looks after the attendance and leave. The marking of the attendance is done through the use of barcode based cards. Pay roll maintenance, increments, promotions, allowances etc., are maintained by the department. Personal records of every employee are also maintained.
Security Service
Another major activity carried out in the department is the security service which is provided round the clock.
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Cleaning Activities
Since the organization is deals with high quality technical goods, cleanliness is very important. The major focus is on keeping the surroundings clean, daily cleaning of work areas, offices, bathrooms etc. The department is also involved with creating hygiene awareness among employees.
Public Relations
Company maintains and confirms to all the statutory compliance. The company also maintains a cordial relation with the panchayat, NSS, labor office, Employment Exchange and other government offices.
Effectively manage the HR. Send proper report to the cooperate head. Selecting the right person for the right job. Provide training and development. Maintain industrial relation.
Future Plan
Attain the ISO 14001 certification in the period 2011-2012
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SENIOR MANAGER
ASSISTANT MANAGER
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This department is involved in the over all in charge of finance in the organization. The main objective is to maximize profits. Capital structure of the company mainly includes equity shares, borrowing from banks, and fixed deposits. The investments are in form of building, plant and machinery, inventory, debtors etc.
Invoice
FINANCE GENERAL SERVICE
Order
MARKETING
Working capital of the company is arranged with the bank of India and centurion bank. The banks arrange term loans for the company.
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Management of Payables
Most of the materials are imported and financial transaction takes place between banks. Credit facility is available in most of the companies and expected to pay within 45 days on an average
Management Receivables
Average credit period given for the customers is 50-60 days. If O/E/N has got a good relation with a particular customer, the credit period given to that customer would be more than this. When O/E/N deals with a new customer, dealings will be through bank. When customer clears the payment, they can get the products from bank which acts as an intermediate.
Costing System
Prime cost (sum of direct labor, direct material and direct overhead)
Selling price (by adding a profit) Competitors price is taken to consideration while fixing the margin of profit. For this finance department will discuss with marketing department.
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Daily transaction management. Preparation of Profit & Loss Account. Preparation Of Budget. Submitting the report to the plant manager.
Future Plan
Attain maximum profit and maintain a sound financial position to the company.
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FIELD MANAGER
AGM (MARKETING)
FIELD ENGINEERS
EXECUTIVES (MARKETING)
STAFFS
STAFFS
STAFFS
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Marketing is not simply the task of selling goods which are produced. It is a means of trying to ensure before head that the goods produced or service offered conform to that potential customers want and will buy. Marketing is the process of planning and executing the conception, pricing, promotion and distribution (4 PS) of ideas, goods and services to create exchanges (with customers) that satisfy individual and organizational goals.
Objectives
Provide marketing plan and strategies Provide an agreed level of customer satisfaction Achieve customer acceptance by advertising, design of products etc. Establish and review the methods of distribution Increase target sales
Promotions By sending CDs, catalogues to the companies Advertisements Through technical magazines & websites Technical support Technical support at the designing stage of the electronic circuitry itself Agency work Department acts as agents for selling products of companies in china and US. Exports 15% of sales
Market Strategies
Due to limited resources, competition and large markets the organization is not usually able to sell with equal efficiency and success to entire market, i.e. to every market segment. It is necessary for the sake of efficiency to select target markets where alternate choices
about price or sales promotion are being considered forecast are required. The marketing strategies of O/E/N are:
Direct Marketing
In this system, the company is dealing directly with the customers in India and abroad.
Market Segmentation
The segmentation analysis will help a marketing manager in the following ways: Provides various type of information that is useful in product development, market research, evaluation of marketing activities etc.
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Design the products which truly parallel the demands of the market Choose advertising media more widely and determine the proportion of amount which should be allocated to each media
Market Segment
Consumer electronics Automotive parts Strategic industrial control Defense service Communication and instrumentation
Customer Services
O/E/N India Ltd believes that catering existing customers is more important than creating new customers. More emphasis is given for caring existing customers. Every year the department targets for an increase of 120% sales of the previous year. Price of the product is based on the credibility of the purchasing company & the quantity ordered. The functions of marketing department also include Marketing Promotions/Handling Enquiry, Payment collection, After sale Service, and Customer Satisfaction Evaluation.
Market Research
Field engineer report Customer satisfaction survey
Targeting
The company is mainly targeting an organizational Equipment Manufactures and people who are quality conscious. Because of Chinese products people can easily get products which are low price but the quality is not ensured. So O/E/N is able to get customers where quality conscious.
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Maintain a good relation with the customer. Collecting feedback from the customer. Main responsibility of key personnel in attaining the company goal in terms of
revenue by billing.
Future Plan
Overcoming the lack of local suppliers. And find more market in India.
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OPERATORS
DESIGNERS
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This department is mainly involved with the design and development of new products as well as existing products. Research is carried out in order to acquire and understand new knowledge and to seek and to examine opportunities for technical improvement in products. Providing new products plans by an agreed date and a predetermined cost. Getting ahead of competitive technologies Design review in accordance with requirement specification The corporate R&D facility operates over a wide range of electronic research and application. It is a self contained centre with well equipped laboratories and a musty disciplinary team of professional design engineers.
Design Activity
Customer supplied systems Development based on market inputs Development in existing products
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Senior Manager
Asst Manager
Executive (Materials)
Executive (Materials)
Office Asst
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Purchasing Process
Supplier development Purchase requisition processing Purchase order processing Supplier performance monitoring
Cost and quality of the materials are the two major parameters considered while selecting a supplier. The time for delivery of materials is noted for monitoring the performance of suppliers. Monopoly is not seen most of the cases. O/E/N imports raw materials like copper, brass etc. silver and silver alloys are more costly. Purchasing decision is based on the order that department gets from the marketing department. They also consider the purchase history. Market trend is also considered. Total material required for one year is calculated based on these factors. Department divide this quantity into four. This will be the quantity required for three months. Thus they place the order at every quarter. If they feel that the demand for raw material is more, it will be taken into consideration while placing the next order.
Storage of tools and moulds Issue of process material, packing material, consumables, tools and spares Issue and disposal of non conforming items
Procedure
Purchase orders originate from purchase requisitions available online. A list purchase requisition is taken daily for further action. For any item, orders are placed by calling offers from different suppliers where ever applicable. Miscellaneous, hardware and electrical item are ordered telephonically and regularized by formal order on receipt. Purchase order contains purchase order number, supplier reference, part number, quantity and number of drawings, descriptions, rate, delivery schedule, terms and conditions.
The purchase orders are entered and stored which will be reviewed by executives in materials department and approved by department head.
Issue
Piece parts and winding wires are issued for production based on monthly production program. List of items to be issued are obtained from the computer as order controlled details and bill of materials are already available in it. If excess is required, parts are issued against store requisition. The defective parts replaced against the defective materials along with the return note authorized by quality assurance. Returnable items like equipments, machines etc are sent to suppliers for repair or replacement along with a delivery note. Non-conforming items which are rejected by the quality assurance are returned to suppliers or vendors along with Chellan or gate passes through shipping sections where ever necessary for replacement or reprocessing if required.
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Vendor Rating
O/E/N imports more than 500 types of various parts, which are supplied by approximately 300 different vendors of all categories. The O/E/N takes into consideration three important factors during vendor rating. They are Price Delivery Quality In a rating done out of 100 marks, 40 marks is given for quality, 30 marks is given for delivery and 30 marks is given for price.
Price
If there is only a single source for the raw material, the full 30 marks for price is awarded to them. This is purely an internal system. If O/E/N has two alternative sources, O/E/N calculates the percentage difference between both the sources and rates them. Always the lowest coated vendor will be getting full marks in pricing.
Delivery
O/E/N will give 30 internal marks for delivery of materials at the right time. That is if the vendors are able to provide the materials before the due date the company will be givingn30 full marks and an allowance another 5 days is given for the vendors. If they are exceeding more than 5 days with respect to the due date, O/E/N will start reducing 1 mark per day which will be a bad remark for the vendors in the future. For certain specific components, allowance up to 15 days is given by the company depending on the situation.
Quality
O/E/N is given high importance for quality and that is one of the reasons why they are giving highest marks, 40 marks for quality. Right now as the O/E/N standard, number of parts rejected should be less than parts per million and there will be giving full marks when the parts are fully accepted.
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GENERAL MANAGER
SENIOR MANAGER
CHIEF ENGINEER
EXECUTIVES (INCOMING
EXECUTIVES (LAB)
INSPECTORS
INSPECTORS
TECHNICIANS
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Quality is their fundamental business principle by providing quality products and services to customers in their prime task. But their ultimate aim is to offer customers ever improving products and services.
Testing
The quality assurance lab is equipped with the state of art testing equipments. Electrical life testing Mechanical life Continuous exercitation at elevated temperature
Ware Housing
Piece parts, winding wires, raw materials after inspection by quality assurance are received in the respective stores along with the goods receipt notes, inter shop Chellan and accepted cards and rework stored items are received along with river code after acceptance by quality assurance. Other items process material consumable tools, spare parts and packaging materials are received along with Goods Received Note and it is checked and stored in the space provided with identification and details will be entered in the computer.
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Tools and moulds received along with finished materials transfer note from tool room after acceptance from quality assurance and are kept on racks providing identification number and details. The main processes that are performed in QA are as follows: a. Incoming parts inspection b. Finished tools inspection (first sample testing) c. Defective material rejection
Initially, when materials are purchased they are first approved by the first inspection store, where the quality, lot number etc. are checked. 1) On approval, a Good Receipt Note GRN is processed signed by the initial inspector and a copy is passed to the QA incoming inspection.
2) At the QA lab, the materials are inspected according to the standard dimensions and on the approval, passed on to the stores.
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Future Plan
Make more quality standards.
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Objective
Synchronize marketing requirement and production capacity through monthly production program.
Aim
To schedule 100% marketing requirement against each products in monthly production program. Department calculates the utilization of each plant by calculating the total produced value and the maximum capacity of the plant. Thus the department is responsible to submit the production program performance report to the managing director.
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Procedure
Processing of order controls and production programming for manufacturing. Order controls issued by marketing with required documents if any are received through materials after authorization. Production copy of order controls after authorization is sent to factory & research and development department. For urgent orders, parts are arranged immediately on priority superseding production program priority. A monthly report is given to managing director with copy to marketing unit on the details of urgent order. Based on the draft program received from marketing, monthly production program will be finalized in consultation with materials and manufacturing department. P1, P2, P3 priorities are divided and production program copies are sent to manufacturing and marketing department. A monthly report on production program is given to managing director after program finalization. For parts received from outside (purchased parts), process orders are raised and sent through production planning department and quality assurance is done for further processing in fabrication/plating shop. Production planning department will arrange with concerned departments for further processing of parts according to urgency. A tentative list of priorities is given to plating shop daily for guidance.
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PRODUCTION
MARKETING
PLANNING
MATERIALS
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AGM (PDN)
DY MANAGER (PDN)
ASST.MANAGE R (PDN)
EXECUTIVE
EXECUTIVE
EXECUTIVE
OPERATORS
OPERATORS
OPERATORS
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Production department is divided in to three. They are: Tool room Fabrication department Assembly unit
Production department must see that the operations are done effectively & efficiently. Productivity is also monitored to ensure maximum utilization.
Future Plan
Making highly complex moulds in the main plan of production department.
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SR MANAGER (TR)
TOOL MAKERS
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In O/E/N there is a well equipped modern tool room with all facilities. Tooling is often more an art than a science. Tool room is managed by a team of expert engineers in tool design and in manufacturing a group of well trained tool makers and machinists. A well equipped press and moulding shop attached to the tool room provide facility for providing the tool and moulder. Design review will be shown to fabrication and assembly before machining. And tool room would then collect their suggestions. Tools are supplied to assembly and fabrication. Tool room works in four wings: Tool design Machining department Tool assembly Maintenance The first activity is to design the tool based on the component design drawing. Then tools are machined using several machines in the tool room. Tools are inspected and then assembled to place in the concerned places. Tool room also does the maintenance work of tools. After particulars level of production tools are taken for maintenance work. All tools are numbered and their history is maintained. If any tools fail during manufacturing of relays or any other products, they will return it to the tool room. Using computer they would send repair card to tool room
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SR MANAGER (FAB)
EXECUTIVES (FABRICATION)
EXECUTIVES (PLATING)
OPERATORS
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The main assembly is supported by comprehensive fabrication facilities with power press for pressed piece parts, a multi-slide press to produce complicated switch contracts, plastic molding machines and plating plant that handles planting of conventional as well as precious metals. Three sub departments: Actual fabrication Electroplating Moulding shop
Actual Fabrication
The parts of the products are actually made in this department.
Electroplating
It is done to increase electrical contract to increase the pickup relays to protest against corrosion and for good appearance.
Moulding shop
In this department the cover for the relays are molded.
Assembly Unit
This department is mainly related to the making and assembly of relays, switches and potentiometers. This department work is 24 hrs. In a day as three shifts. Their main objective is to reduce process scrap, improve crap index and achieve programmed production.
Switches
Rotor blade trimming Rotor blade splitting Staking
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Eyeleting Shaft and star wheel assembly stacking C Washer clinching Ball and spring assembly Final assembly Mooting hardware assembly
Potentiometers
This product is used in electronic circuits for getting desired voltage drops. All parts of potentiometers are imported.There are separate sections for assembling automotive relays, industrial relays and switches. After assembling, calibration of products is done to check the parameters like pressure, mould distance between the armature and coil etc.
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GENERAL MANAGER
EXECUTIVES
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It is responsible for maintaining the overall mechanical, electronics and electrical failure of the company. Maintenance one line is available for informing complaints. Engineering service department has direct communication with all other departments with the company.
Maintenance
Electrical Maintenance
Mechanical maintenance
Electronic Maintenance
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EXECUTIVES (CALIBRATION)
OPERATORS (CALIBRATION)
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What is ERP?
ERP is a system that integrates all of the functions such as planning, manufacturing, distribution, shipping and accounting is to a single system, designed to serve the needs of each department within the enterprise. ERP is more of methodology than a price of software, although it does incorporate several software applications bought together under a single integrated interface.
Automation
When a request comes to these departments for automation, the team would observe the process which is needed to be automated. The team would analyze the cost involved and the man power required for the automation process and submits a report to the managing director.
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Objectives
Saving in production labour Improving working condition Performing highly hazardous operations Improving utilization of expensive equipment Reducing production cost Improving manufacturing flexibility Response to market needs
Quantitative Benefits
Reduced labour cost Increased productivity Reduced inventory Reduced space requirement Greater flexibility of system Shorter lead time
In the process function, there are 4 process leaders for CNC Miling SGS&G,SEDM and WEDM. Under the leaders there are some programmers and operators.
In the design section, there are two types of designing. They are: Mould design
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Electrode design In Mould design GTC use PRO ENGINEERING software for designing 3D molds. They design molds according to customers needs.
Future Plan
Inventing new method for molds designing & processing. They plan to increase the number of team in this department.
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GENERAL MANAGER
EXECUTIVES
STAFF
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The objective of general service department is to stock and dispatch products systematically.
Original in voice is created by this department. Now 90 % of products are send by courier as it is cheap and fast. It is the responsibility of the department to pack the goods based on the mode of the transportation used.
Customer Care
Since O/E/N India ltd is highly emphasis on quality. So there is little chance to detect fault products. This section takes corrective action in case of any requirement from the customers side. Usually two types of customer request are seen. First one is when the customers would like to replace the product. In other case customer may want an analysis report regarding an undesirable aspect which is not expected. They request the company to check it in future supply. Then this wing creates a customer care analysis (CCA) in consultation with QA and R&D. CCA is the analysis report of finding why such complaint has occurred. This will be sent to the customer. In some complaints both the above case may happen.
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Strenghts
Market leader in electromechanical components. Excellent manufacturing and infrastructure facilities. Excellent image, reputation for quality, reliability and overall business. Good employer-employee relationship and unique work culture. Offer products for the global market.
Weakness
Out dated technology. Need for up graduation/exposure to new technology. Delay in product development (time to market) and commercialization. Low volume of production and high cost of inputs or production. Lack of aggressive marketing style.
Opportunities
Industry with tremendous scope for growth. Access to technology, but costly. Contract-manufacturing possibilities. Emerging and untapped markets.
Threats
Technological obsolescence and rapid technology change. Severe competition from freely available imported equivalents. Slow economic growth in India and abroad, lifting the top line. Heavy dependence on few product lines and few customers. Decreased share of market in telecommunication.
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5.2 Observations
Majority of the respondents were aged above 50 About 98% of the respondents are married. Hence they are exposed to the family needs. Among the respondents 87% has been working for the company for more than 10 years. This shows the attachment of the employees to the company irrespective of the other matters.
65% of the respondents were given training in work related areas, which shows the commitment of the company to train its work force.
Though majority of the respondents agree that their job is not very stressful, 42% feels their job as very stressful.
As 75% of the respondents agree that they receive adequate break/rest hours, it can be concluded that the company is giving them enough rest hours.
96% of the respondents agreed that they are receiving adequate support from their superior officer. This compliments the healthy vertical relationship maintained in the company.
The respondents also agreed on the support and guidance they receive from their management.
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5.3 Suggestions
A clear idea of the direction and goals of the company should be given to the employees this will help to improve their performance.
Awareness of welfare measures taken by the company should be given to the employee. There should be proper reward system. Any early performance can be taken into account and can be rewarded. This will motivate the employees to perform better.
There should be certain programs to uplift the level of enthusiasm among the employee.
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Conclusion
O/E/N India limited has the potential to grow and increase its market share in domestic market without compromising on its quality with its cutting-edge technology and management practices. Company has immense growth in operation since its commencement of commercial production from 1968.
O/E/N India limited is the first Electro-Mechanical company in Kerala who got ISO 9001:2000 certifications and a variety of end use product approvals. The company concentrates on keeping the quality of products high and spends lot of money in R&D for technological innovations. The employees of the company were very helpful during the course of study and cooperative in giving the details for the study. The visits to various departments were very informative and it added to my awareness about the organizational atmosphere.
As a result of my organizational study, I was able to find out the practical side of theories of management and I am sure that this experience will be an added advantage to my carrier.
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