The Salience of Perfect Engineers: Sri Krishna Arts & Science College, Department of Commerce

The Salience of Perfect Engineers
2014
2. ORGANIZATION STRUCTURE
Managing Partner
JMP Global
business
Manager
Marketing
GM
technical
VP
JMP
operations
Commercial
VP
Finance
Manager
HR Dept
Operations
Maintenance dept
IT dept
Mgt Representative dept
Manager
Design
Research &
Quality
Marketing
dept
development
control
Sri Krishna Arts & Science College, Department of Commerce
Production
dept
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Following is the list of departments functioning in Perfect Engineers.

Production
Stores
Design
Quality control
Maintenance
Purchases
Sales
Accounts & Finance
Administration
Human resources
Marketing
IT
Research & Development
Every department has its own workflow and work procedure. All the above
departments work hand in hand to ensure maximum efficiency through perfect co-ordination.
The departmental structure and work procedures/ functioning of some of the above
departments have been explained in detail which is as follows:
2.1 PRODUCTION DEPARTMENT

Perfect Engineers pumps are built intelligently for a variety of applications. The pump
series classify as non-self-priming, centrifugal pumps with multiple stages to achieve
different head and discharge. All the pumps are fitted with Energy efficient motors which
conform to IEC standard. The construction of these pumps are robust and are built for long
term use. To facilitate smooth operations modern machineries like Fully-automatic Coil
Winding Machines, Shed Winders, CNC Machine Centre, Robot Tending for CNC Machines
have been installed in the production department to ensure world class quality of products.
The employees are required to wear helmet & shoes before entering the production
department as a precaution.
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2.1.1 PRODUCTION PROCESS

There are two production plants at Perfect Engineers. Plant-I produces
domestic & agricultural pumps. There is a variety of pumps produced in this plant namely:
mini-monoblock ( hp 0.25 to 1.5), jet pumps (upto 1.5 hp) , submersible pumps( 0.5 hp to 15)
& centrifugal pumps(0.5 hp to 15) . Plant II produces 100% industrial pumps. The variety
of industrial pumps produced are multistage pumps (0.5 hp to 5 hp) & sewage pumps.
The following is an image of vertical multistage pumps assembled in the production

department of Perfect Engineers under the brand name PARANAA
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The image below shows visually the spare parts used to produce horizontal
multistage pumps by Perfect Engineers.
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2.2 PURCHASE DEPARTMENT

The purchase department in Perfect Engineers plays a major role in providing quality
pumps. The purchase department is in charge of purchasing all the raw materials required for
production right from minor spares parts to ancillary products. Around 10 % of the raw
materials such as the cartridge seal is being imported from Italy .The role of the purchase
department relates to the following activities such as:
Procuring Materials
One role of the purchasing department is to procure all necessary materials needed for
production or daily operation of the company or organization. For a manufacturing company,
this includes raw materials such as iron, steel, aluminum or plastics, but it also includes
tools, machinery, delivery trucks or even the office supplies needed for the secretaries and
sales team.
The purchasing department makes sure there is always sufficient product on the
shelves or in the warehouses to keep the customers happy and keep the store well-stocked. It
is especially important to keep inventory ordering at a reasonable level; investing large
amounts of capital in excess stock could result in storage problems and in a shortage of
capital for other expenditures such as advertising or research and development.
Evaluating Price
A purchasing department also is charged with continuously evaluating whether it is
receiving these materials at the best possible price in order to maximize profitability A
purchasing department needs to shop around to find the best vendors at the most reasonable
prices for the company's particular size orders. Purchasing department staff may
communicate with alternate suppliers, negotiate better pricing for bulk orders or investigate
the possibility of procuring cheaper materials from alternative sources as part of their daily
activities.
Paperwork and Accounting
Purchasing departments handle all of the paperwork involved with purchasing and
delivery of supplies and materials. Purchasing ensures timely delivery of materials from
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vendors, generates and tracks purchase orders and works alongside the receiving department
and the accounts payable department to ensure that promised deliveries were received in full
and are being paid for on time.
Policy Compliance
The purchasing department also must ensure that it is complying with all company
policies. Before making a purchase, the purchasing department must ensure that it heeds the
proper protocols for purchase and budget approval and must ensure that any items are
purchased in accordance with the overall purchasing policy of the organization.
2.3 ACCOUNTS & FINANCE DEPARTMENT

The following is a flowchart describing the structure of accounts & finance in Perfect
Engineers.
Managing Partner
JMP Commercial
V.P Finance
Senior manager
Senior Executive
Accounts
Sr. Executive
Accounts
Accounts & Admin
Sr. Executive
Accounts
Jr. Executive
front office
2.3.1 NATURE OF WORK

The workflow of the accounts department in Perfect Engineers is quite wide. Some of
the activities are described in detail below. They are:
Suppliers bills are for forwarded by the purchase department after checking the
quotations (including rate, qty, amt, date) to the A/c department.
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There are two types of bills forwarded by the purchase department to finance dept.
They are:
o Purchase supplier bill
o Sub-contractor bill
Both these bills are entered into the system using tally
A credit period of 15 days is taken by the company from their suppliers.
After the managements approval, the amount is paid to the supplier by depositing it
in his bank a/c. Perfect Engineers hold a bank a/c in Central bank.
Payroll is forwarded by the HR department to the finance department. After the

payroll estimate of each employee is received, the respective amount is deposited in
the employees bank a/c on the 7th of every month.
Minor cash payments and expenses is also taken care by the finance dept.
Every one month sales tax and central excise is filed.
C form of purchase department is generated by finance department and C form of

sales department is received from sales department. These C form are generated
every quarter.
Most of the sales are on credit and the follow up of the sale amount is done by the
sales dept. The credit sale amount is received by way of RTGS & NDFC. The
incoming amount is kept in track by the finance department.
There exists an internal audit system in Perfect Engineers as it is a partnership

concern. Thus it is not statutory to conduct independent audit.
As there is an import of minor raw materials, the letter of credit transactions are taken
care by the finance dept.
The finance department clears the outstanding fuel expenses of the company vehicle
to Balamurugan Agencies every 15 days.
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2.4 HR DEPARTMENT
Structure of HR Department
Managing Partner
VP Operation
Manager HR
Jr Executive HR
2.4.1 MAJOR CLASSIFICATION OF HR FUNCTIONS

There are four major classifications of HR functions. They are as follows:
Manpower & Recruitment
Training & development
Performance appraisal
Statutory requirements
2.4.2 VARIOUS POLICIES UNDER HR DEPARTMENT
Manpower policy
Recruitment policy
Separation policy
Working policy
Joining formalities
Probation & confirmation
Domestic & local travel
Training & induction
Performance appraisal
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2.5 DESIGN DEPARTMENT
Managing Partner
VP Operation
JMP GBD
GM Technical
Manager operation
Deputy manager
Design
Jr engineer
design
Jr engineer
design
Jr engineer
design
Assistant manager
design
Jr engineer
design
Jr engineer
design
Sr executive
costing
The product to be manufactured is designed by the R&D and design department. The
design developed is very important as it shows the uniqueness and efficiency level of the
product. For the product to be successful, the design layout must be good.
In Perfect engineers the different softwares used to design the products are:
Pro engineer
PDM
Solid works
CAD
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Product data management is an online method where all the specifications of the
design is given via programming and this software shows whether the design is practically
feasible or not. This software is also known as design server. CAD and solid works is a 2D
software and Pro engineer is a 3D software.
Further the following work is done by the design department. They are as follows:
Customer grievance regarding the existing products are taken care by the
design dept. In short, the after sales service is done by the design technicians
when the service department employees do not know how to solve the
problem.
Development lead time of the new products is an important element and this
element is in kept track to avoid delay in launching new products
New product development is done by this dept. Further, they conduct a

feasibility study for the new product developed as per the requirements of
ISO 9001 certification
The design dept is directly linked to the purchase department in order to

receive the raw materials of the product they wish to develop
Quality control services and marketing design inputs are also done by the
design dept.
The design department at Perfect Engineers has been provided with world class
infrastructure for the purpose of product designing .The design department plays a major role
in determining the future position of the company as new products and improvising in
existing products are done in this department. Thus, it is regarded as one of the core
department and the functioning of this department is monitored every quarter through
management review meeting (MRM).
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2.6 STORES DEPARTMENT

The materials stored in stores are subjected to stock verification once in 6 months and
appropriate reconciliation is carried out. After the approval of VP operations (Mr.Jaganathen)
the reconciliation statement is scrapped. No copy is maintained.
The retention time of stores control record such as MRS (Material Requisition Slip,
PID (Purchase Indent), ID (Issue Return Document) for minimum period of 6 months. On
weekly basis stores personnel analysis the data with regard to penciling indents and takes
appropriate action.
2.6.1 RESPONSIBILITIES OF STORES KEEPER
Receipt of incoming goods
Inspection of all receipts
Storage and preservation
Identification of all materials stored
Materials handling
Packaging
Issue and despatch
Maintenance of stock records
Stores accounting
Inventory control
Stock-taking
2.6.2 FUNCTIONS OF STORE MANAGER

1. Receive incoming goods
2. Supervise unloading of material Count, tally
3. Check for damage/shortage and prepare report
4. Fill Goods Inward / Day Book/ Daily Collection Register
5. Complete Vendors Consignment Note (Challan)
6. Arrange for inspection and complete the inspection
7. Prepare Goods Receipt Note (GRN)
8. Prepare Goods Rejection Memo (in case of goods rejected)
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9. Send goods to stores

10. Send other documents to respective departments
11. Ensure all storage facilities are in proper working order e.g. check for loose racks, damaged
goods
12. Ensure goods housekeeping (i.e. check for spillage of oils, dirty walls, obstructions).
13. Ensure all materials handling equipment are in goods condition
14. Check and count goods before issue
15. Make entries Bin (stock) cards promptly
Sample of Bin Card

2.7 MARKETING DEPARTMENT
The marketing dept of Perfect Engineers is located outside its manufacturing unit in
Kalapatti Road, Cbe ; near Sharp Industries. The marketing intiatives taken in this dept
pertains not only to India but also other overseas countries like Canada and Europe where
15% of their sales revenue is generated .The marketing department is commom to 2 other
companies such as ASIA ENGINEERING & AQUAFLOW. This is so because , the
management of these enterprises is the same of Perfect Engineers.
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The marketing iniatives taken by Perfect Engineers is in such a way that only the
industrial world is aware of such a company.The advertisements for products are posted only
in business journals and magazines including both domestic & global ads. Such an initiative
has been taken by the company to cut the exobidant expenses on advertisments as a part of
company policy.The joint managing partner Mr. Dharani is the head for global business
development in Perfect Engineers. Therefore all the marketing & sales staff report to him.
THE STRUCTURE OF MARKETING DEPARTMENT

Managing Partner
JMP global business

development
Marketing manager
Sr. Executive
Marketing
Jr. Executive
Marketing
2.8 QUALITY CONTROL DEPARTMENT

2.8.1 QUALITY CONTROL TESTING
In Quality control testing only critical items are tested/ inspected. The critical items
like scrap, hard-coke, yellow dextrin powder etc these are the critical items which involves
practical testing. Non- critical items like screw, bolt, copper wire etc which does not require
testing or inspection usually non- critical items are manually checked and sent it to stores or
for production.
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2.8.2 RECEIVING INSPECTION SAMPLING PLAN
Lot size
Sub-group size
Acceptance
2-8
9-15
16-25
26-50
51-100
13
101-150
20
151-300
32
301-500
50
501-1000
80
1001-3000
125
3001-10000
200
10
Quality control department inspect the goods using the method sampling plan. In
sampling plan method there is lot size, sub-group size and Acceptance No. The lot size is the
quantity of raw materials received from the seller, sub-group size is the according to the
quantity received No, sample goods is inspected and the acceptance No is the limit for
rejected goods ,so it should be less than acceptance No.
If the rejected goods is more than acceptance No the whole lot is sent back to the seller.
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