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KERALA AGRO MACHINERY CORPORATION LIMITED
By
GEORGE G MATHEW
REGISTER NUMBER
1927310
Institute of Management
CHRIST (DEEMED TO BE UNIVERSITY), Bengaluru
JULY 2019
1
Declaration
I hereby declare that the Organization Structure Training report on KERALA AGRO MACHINERY
CORPORATION LIMITED., has been undertaken by me for the award of Master of Business
Administration degree. I have completed this study under the guidance of Prof. Reena Raj.
I also declare that this Organization Structure Training report has not been submitted for the award
of any Degree, Diploma, Associate ship, Fellowship or any other title, in CHRIST (Deemed to be
University) or in any other university.
2
Certificate
This is to certify that the Organization Structure Training report submitted by George G Mathew
is a record of work done by him during the academic year 2018-19 under my guidance and
supervision in partial fulfillment of the requirements of Master of Business Administration degree.
3
Certificate by Corporate
4
Acknowledgement
I am indebted to all the people who helped me accomplish this Organization Structure
Training successfully.
I thank Dr. Jain Mathew, Dean, Dr. Jeevananda S, Associate Dean, Prof. Krishna M C, Head
of department of Institute of Management, CHRIST (Deemed to be University), for their kind
support.
I thank Prof. Reena Raj for her support and guidance during my training. I remember her with
much gratitude for her patience and motivation, but for which I could not have submitted this work.
I wish to express my sincere thanks to my corporate mentor, Mr. Binoy, Deputy Manager,
Kerala Agro Machinery Corporation Ltd., for giving me an opportunity to work under his guidance
and successfully complete my training.
I thank my parents for their blessings and constant support, without which this training would
not have seen the light of day.
George G Mathew
1927310
5
SYNOPSIS
The 45 days of organizational structure training at Kerala Agro Machinery Corporation Limited gave
me a clear understanding on the topic of organization structure and also the way an organization
function. I was very fortunate to get a very supporting and helping corporate mentor Mr. Binoy. He
helped me with getting my concepts clear and also gave me live practice on real time situations
happening in an organization.
I got exposure of every departments for 2 days through I which I could make a clear understanding
regarding each of the department. I also got more experience in the marketing department where a
they taught me about E-tenders and Quotations etc. They also involved me in preparation of fresh
agreements and renewal agreements. Altogether it was a very good learning experience.
6
CHAPTER Page
TABLE OF CONTENTS
NO. No.
1 INTRODUCTION TO ORGANIZATION 9-20
2 ORGANIZATION STRUCTURE 21-22
3 FUNCTIONAL DEPARMENTS 23-57
4 SWOT ANALYSIS 58-61
FUNCTIONAL HIGHLIGHTS ACROSS KEY
5
RESULT AREAS 62-63
FINDINGS, RECOMMENDATIONS AND
6
CONCLUSIONS 64-65
7
Fig Page
No. LIST OF FIGURES No.
1 Organizational structure 22
8
CHAPTER 1
INTRODUCTION TO
ORGANIZATION
9
INTRODUCTION
Organization is a social arrangement which pursues collective goals, which controls its own
performance, and which has a boundary separating it from its environment. Organization is the
association formed by a group of people who see that there are benefits available from working
together towards some common goal.
Agriculture is the back bone of our country. Agriculture is no longer what it used to be
intensive, mechanized operations are fast changing the tempo of agriculture. Agriculture is the base
of Indian economy; a large number of populations depend upon the agriculture sector for their lively
hood. India needs very big quality of food grains to feed her population. So, it is high time that we
need to improve modern agriculture equipment and their implementation to increase the productivity
in agriculture sector. The western countries are now able to produce excess of food grains using better
techniques. Now the time has come or has exceeded for us to step in to the mechanized agriculture.
State Kerala has peculiar state of affairs in its agricultural economy. Being a consumer state,
it depends largely on agricultural products from the neighboring states. It has tiny farm land owned
by private land owners. Even those available lands are not fully utilized for cultivation, owing to
economic reasons. Low productivity coupled with prohibitive cost of cultivation, has virtually driven
the traditional farms out of there vocation.
Present status of the KAMCO is synonymous with service to the small and marginal farmers
of the country. KAMCO, through precision and quality is revolutionizing the small and marginal
holding of the country. Today KAMCO power tiller is the most sought-after tiller in India, enjoying
over 20% of the market share at national level. The company with its four plants is confidently
meeting the demands for KAMCO products in India and abroad. The main markets for the power
tiller are West Bengal, Assam, Tripura, Meghalaya and Manipuri.
10
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVES
Organizational study focused on analyzing the various functions of Kerala Agro Machinery
Corporation Ltd (KAMCO), Athani. Methodology is the way and mode of conducting the study. An
important aspect of methodology is data collection. The methodology used in the study involves the
collection of the date through primary and secondary sources within time period of 30 days.
Data can be classified as-
• Primary data
• Secondary data
PRIMARY DATA
Primary data is the data collected for first time. It is original in character. It is collected directly by
conducting discussions and interview with officials and staff members. Different departments were
continuously observed at times and their functioning and roles of the members were identified and
noted.
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SECONDARY DATA
Secondary data is the information which is collected indirectly. The main source includes company
journals, website and annual report.
• Since the time was not sufficient to cover all units, we could collect the details and functioning
regarding only KAMCO Athani unit.
• Lack of time to undertake in-depth analysis
• As the company is very wide, the different operation cannot be correctly analyzed.
• It was mainly on the basis of secondary data; the data was analyzed as all records and
documents of the company were not accessible as it was confidential in nature.
• People in the organization were busy with their work and it was hard to obtain complete
information from them.
• Data is historical in nature
• We could not get all the date especially financial data regarding budgets.
PERIOD OF STUDY
• The study was conducted for a period of 45 days.
KERALA AGRO MACHINERY CORPORATION LTD was established in the year 1973 as a
wholly owned subsidiary of Kerala Agro Industries Corporation Lid (KAIC) Trivandrum, for the
manufacturing of agricultural machinery specifically power tillers, diesel engines etc.
12
ORIGIN OF THE ORGANIZATION
The Kerala Agro Industries Corporation limited (KAIC Ltd) Trivandrum, (Government of
Kerala Company) promoted the establishment of Kerala Agro Machinery Corporation Limited
(KAMCO). It all began in 1958, when Dr. Rajendra Prasad, the President of India was presented with
a ‘Kubota Power Tiller’ by the Japanese. (M/S. Kubota Limited, Japan the world’s leading
manufacturer of power tillers and other agricultural machinery). The machine helped to open up new
avenues in farm mechanization for a country predominantly agrarian. It was realized that
mechanization of farming operations would be one of the keys to engineering a successful green
revolution and reliable indigenously manufactured farming equipment became the need of the day.
The KAIC ltd entered into technical collaboration agreement with M/S. Kubota limited, Japan in
February 1972, on 15/11/1972, the Kerala Industrial and Technical Consultancy Organization ltd
(KITCO) was entrusted with the work of M/S KAIC LTD, which held the entire paid up capital share
in KAMCO. Even though the company was formed as a subsidiary of KAIC ltd, subsequently the
company was made a fully owned government company by transferring the share held by KAIC ltd.
A major growth and development of the organization is that KAMCO has achieved the
International Quality Excellence Certificate under ISO 9002 in October 1996. KAMCO is the second
public sector undertaking in Kerala getting this coveted certificate justifying the high standards of
the products for their 3 units. From 15th March 2002 onwards KAMCO becomes an ISO 9001-2000
registered company by KPMG Quality Registration accredited by the Dutch council for certification.
Present status of the KAMCO is synonymous with service to the small and marginal farmers
of the country. KAMCO through their precision and quality is revolutionizing the small and marginal
holding of the country. Today KAMCO power tillers are the most sought-after tiller in India, enjoying
over 60% of the market share at national level. The company with its four plants is confidently
meeting the demands for KAMCO products in India and abroad. The main markets for the power
tiller are at West Bengal, Assam, Tripura, Meghalaya and Manipur.
13
Future plans of the organization include a number of diversification plans in the anvil is
proposed to set up Research and Development activities which will hope fully help it to develop new
products in the future and live up to its promises, that’s its product will be “ a boon for the farmer
and gain for the nation”. The quality policy of KAMCO is “total customer satisfaction through quality
products and services with improved technology and employee participation".
The main products of the company are ‘KAMCO power tiller, KAMCO Power Reaper and
KAMCO Diesel Engine’. KAMCO Power Tiller is a versatile machine used for primary farming
operations like tilling, ploughing, weeding, leveling, hulling, riding and transporting. KAMCO
Power Reaper is a compact small harvesting machine, suitable for harvesting paddy, wheat, barley
etc. KAMCO diesel engine is used for pumping water at high force.
For the last 3 decades, KAMCO has been meeting the needs and demands of Indian farmers.
The logo of KAMCO is “Engineering Green Revolution”. KAMCO has been successfully
engineering the green revolution in India through the manufacturing of indigenous and quality
agricultural machineries. KAMCO is also importing agricultural equipment like “Kubota Combine
Harvester” and KAMCO Rice trans planter.
The company is making profit for the last 22 years continuously increasing its production,
turnover and profit year after year.
KAMCO has established three more units from its internally generated resources. The units
are located at Kalamassery in Ernakulam District, Kanjikode in Palakkad District, and Mala in
Thrissur District. The products that are being manufactured at different units of KAMCO are:
The company plans to diversify its activities further in acquiring technical knowledge and going into
regular manufacture under license, of machine suitable for other agriculture purposes with the small
and marginal farmers in mind. KAMCO is an ISO 9001-2008 registered company.
VISION
KAMCO with over 3 decades of engineering excellence stands as the number one power tiller
manufacture in India. Not surprising, with state-of-the-art products, an innovation Research and
Development and the stringer quality control system is rated as one of the best in the country. The
technically competent, dedicated management and work force goes on to ensure that KAMCO shall
be leader for several years to come.
MISSION
QUALITY POLICY
• Total consumer satisfaction through quality products and services with improved
technology and employee participation.
• Comply with requirement of consumers and the applicable statutory regulatory
requirements. The effectiveness of the established quality management system is
continually improved to enable achievement of the policy.
• To ensure that quality requirements of the product and service are maintained at all stages.
• To create a culture amongst all employees towards total quality concerts productivity
through total involvements and commitment of the employees.
• To create healthy working environment for attainment of quality goals with excellence and
make quality a way of life.
• To detect and prevent nonconformance and defects as early as possible and to eliminate
them through appropriate changes to the quality management system.
• To achieve and maintain quality leadership through continuous technology up gradation,
improvement in techniques, systems and procedures to meet consumers changing needs etc.
The objectives of the company are to manufacture in India either in collaboration with or
otherwise import and trade agriculture machinery like tractor, power tiller, power reapers, combine
harvester, trans planter, diesel engines, pump sets, implements, accessories and spares there to .The
objectives also include establishments of engineering workshops reaper shops to undertake and serve
of agricultural machinery, of other machinery, equipment’s implements and tools.
Assembly was established in 1970 at Athani by M/S Kerala Agro Industries Corporation for
the assembly of Kubota Power Tillers in technical collaboration with Kubota ltd. Japan. The KAMCO
manufactures power tillers with their own facilities.
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AREA OF OPERATIONS
KAMCO manufacturing facilitates include special purpose machine, specially built general
machines and imported machines. The inspection facilitates include modern inspection and existing
equipment’s. KAMCO have their own Metrology, calibration and engine test lab. The following are
the main activities of the company.
1. Manufacturing and marketing of agricultural machines like power tillers, tractors, power
reapers, diesel engines etc.
2. Power tiller products at Athani and Palakkad units. Major bought out from dedicated venders
in India. There are around 250 venders now.
3. Kalamassery units produce engine for power tiller
4. Power reaper is produced at Mala.
5. Trading and manufacturing of other farm machines.
MILESTONES OF KAMCO
• 1973- KAMCO was established as a wholly owned subsidiary of KAIC (Kerala Agro
Industrial Corporation ltd)
• 1986- KAMCO has become a “Government of Kerala Undertaking” firm.
• 1992- KAMCO established the second unit at Kalamassery in Ernakulam district for
manufacturing “diesel engines”.
• 1995- Witnessed the setting up of 3rd unit of KAMCO at Kanjikode, Palakad for
manufacturing power tillers.
• 1996- KAMCO won international quality excellence certificate of ISO 9002. KAMCO is the
second place public undertaking getting this covers certificate and the only one public sector
undertaking getting which has got ISO 9002 certification justifying high standards of products
of their 3 units.
• 2000- Latest and technically advanced units were started at Mala, Trissur for producing power
reapers.
• 2002-KAMCO has become a 9001-2000 registered company.
• 2012- KAMCO started tractor manufacturing.
17
AWARDS, RECOGNITIONS AND CERTIFICATIONS
Kerala Agro Industries Corporation Ltd (KAIC) Trivandrum promoted the establishment of
Kerala Agro Machinery Corporation Ltd (KAMCO)
• The KAIC ltd entered into a technical collaboration agreement with M/S Kubota ltd, Japan in
February 1972.
• KAMCO was incorporated on 24/3/1973 with an authorized capital of two crores as subsidiary
of M/S KAIC ltd, which held the entire paid up capital share worth Rs.15.009 lakhs in KAMCO.
• The company was licensed to manufacture 12000 tillers, 5000 numbers of 4-5 hp-diesel engines.
The company has a carryover loss of 210 lakhs unto march 1984.
• This was completely wiped off by 1989 and the company is paying dividend to the government
for the last 13 years.
• KAMCO Kalamassery unit was purchased outright from SIDCO during 1990 and converted as
available diesel engine unit.
• KAMCO absorbed the workers of that sick unit as permanent employees as an expansion activity.
A new modern compact unit for manufacturing power tillers was put-up at Kanjikode, Palakkad
district for a cost of 4.3 crores during the beginning of 1995.
• As a part of diversification activity, the company developed a compact small harvesting machine
KAMCO power reaper and its production is carried out at Mala unit in Trissur district. The project
cost of the unit was 4.28 crores.
BUSINESS PERFOMANCE
By comparing the performance of the company with those of the previous year performances,
we can understand company’s growth. For this study the company’s sale details and its profit are
taken to evaluate the whole performance of the company. Performance analysis is helpful to
understand its position in the competitive market.
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also include establishment of engineering work shops and reapers shops to undertake reapers and
serving of agriculture machinery or other machinery equipment’s, implements and tools.
PRODUCTS
DEALERS OF KAMCO
1. Assam
M/S-Chemtrade India Pvt. Ltd
M/S-Luit Agro India (P)Ltd
2. Andhra Pradesh
M/S Auto engineering enterprises
M/S-Karshak and sons
M/S-Rohoni agri agencies beside SVSS arts and science college
3. Bihar
M/S-Usha Agro Industries Pvt. Ltd.
M/S-Patel agencies
4. Chhattisgarh
M/S-Reliable Distributor
M/S-Jhabak Tractors
M/S-Balaji Distributors
5. Gujarat
M/S-Dahnnu Agro centre
M/S-Dhru Tractors
M/S-Navsari Taluka co-operative Purchase – sale union ltd
M/S-Maruthi Tractors
6. Kerala
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M/S-Kerala Agro Industries Corporation Ltd
7. Karnataka
M/S-Arun autos
M/S-New Tech Distributors
M/S-Ratnagiri Impex (P) Ltd
8. Manipur
M/S-Jamunalal Mangilal& Co.
9. Meghalaya
M/S-Stanley Roy construction
10. Madhya Pradesh
M/S-Patel Agencies
11. Maharashtra
M/S-Dahanu Agro centre
M/S-Maharashtra Agro Ind.Dev. Corporation Ltd
M/S-Girepunje hardware & electronics store
M/S-Kripan Sheti Sewalaya
12. Orissa
M/S-Eastern enterprises
M/S-Orissa Agro Industries Corporation Ltd
M/S-Reliable enterprises
M/S-Saramit enterprises
M/S-Ajay Agro & Sales
M/S-Jain enterprises
13. Tamil Nadu
M/S-Bhavani Agro Services
M/S-Gajaraj & Co.
M/S-Mech Automobiles
M/S-Selvam Agencies
M/S-Sarada Agency, 271/A
M/S-Tamil Nadu Agro sales & services co.
M/S-Ganges Tractors
M/S-Amresh enterprises
T.N. Delta Agro sales & services Co.
14. West Bengal
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M/S-West Bengal Agro Industries Corporation Ltd
M/S-Friends machinery & spares
15. Uttar Pradesh
M/S-Patel Machinery Corporation
M/S-Perfect Tech enterprises.
21
CHAPTER 2
ORGANIZATIONAL STRUCTURE
22
Figure 1
23
CHAPTER 3
FUNCTIONAL DEPARMENTS
24
Marketing department
Figure 2
25
• Marketing and business development in state: - Tamil nadu, Pondicherry, Karnataka, Andhra
Pradesh and Telangana.
• Pricing of products, spares and accessories
• Marketing and business development in states- west Bengal, Assam, Orissa, Tripura,
Meghalaya, Manipur and other north eastern states
• Export activities
• Iso related activities pertaining to marketing department
26
HUMAN RESOURCE DEPARTMENT
Figure 3
DESIGNATION: MANAGER HR
DESIGNATION: SUPERINTENDENT HR 1
DESIGNATION: SUPERINTENDENT HR 2
He will directly report to general manager HR i/c
• Time office, leave, monthly attendance of permanent, contract, apprentices.
• Statutory compliance and factories act
• Remittance of taxes and levy’s to panchayath, professional tax, licenses and statutory returns.
• Attend matters related to housing loan interest subsidies
• Issue of id card
• HR function of mala unit
DESIGNATION: SUPERINTENDENT HR 3
He will directly report to general manger HR i/c
• Recruitment of contract workers through employment exchange to all units
• Correspondence with employment exchange
• Service matters of contract employment, appointment, termination, resignation, reliving etc
• Matters relating to engagement of contract security services and canteen labor contract.
• Medical reimbursement, ESI, first aid, medical check-up, administration of group personal
accident scheme
• HR function of Kalamassery unit
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MANPOWER PLANNING
The manpower planning in kamco is exercised on the basis of the approved staff pattern by
government. There are different categories of employees such as:
• Permanent
• Probationers
• Apprentices
• Trainees
• Temporary
The human resource department of kamco is concerned with the recruitment and selection, training
and development promotion.
For kamco there is a specific procedure for recruitment and selection they are:
• PSC recruitment
• Direct recruitment
• Through employment exchange
For post like accountant’s office staff’s typist, stenographer etc are hired through PSC recruitment.
Executive and technical post are filled through direct recruitment for this Vacancies are advertised
through newspapers. For the vacancies like plumbers, painters, electricians, mechanics, drivers are
filled through employment exchange. There is no discrimination based on color, religion etc. The
HR department is in-charge for the direct recruitment.
For direct recruitment one the applications are received the eligible candidates are shortlisted.
Shortlisted candidates considered matching the profile go through the selection process. The
selection process includes written test, group discussion and interview.
• Recruitment through PSC for posts like assistant, accountant, steno, office staff, typist etc.
• Recruitment through employment exchanges for temporary posts.
• Direct recruitment for higher posts
There is no discrimination on the basis of caste, race, religion etc. Once candidates are short listed
the interview dates are communicated. Appointments are purely based on merit.
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INDUCTION: -
It provides an introduction to the working environment and the setup of the employee within the
organization. Once selected candidates are appointed on probation, their paperwork including
collection of photos, certificates, etc. and the issue of identity cards, punching cards etc. are made.
The probationary employees are then put through an orientation program where they are familiarized
with all aspects of their job. They are made aware of the job requirement and given their employee
number
PROMOTION: -
Based on seniority, performance, educational qualification, experience and general disposition. The
employees are judged with reference to the personal records and periodical PA.
Employee will be eligible for promotion if he has served in a particular position for at least 3 years
or will be given when the vacancy occurs. In worker category there will be a grade change after a
period of 5 years.
TRAINING AND DEVELOPMENT
In Kamco, two types of training are offered. They are internal training and external training.
Internal training is generally carried out in house for a maximum period of 2 days. Mostly the training
is given by reputed agencies like Kerala state productivity council, central board for workers
education, etc. This type of training is provided for the purpose of increasing the productivity and
efficiency. External training involves sending selected workers and officers to attend seminars and
training programs held outside the premises in response to invitation by reputed agencies. On the
completion of training employee are required to submit a training report. After an assessment of the
effectiveness of the training, the report is placed before the HRD committee.
For new recruiters, awareness of the training or orientation training is given for a period of one week
to one month. After this training, orientation report will be collected from each department. After
analyzing this orientation report, they will give placement to the employees as trainees under
probation. After satisfactory completion of probation period the employees will be placed in regular
pay scale. In KAMCO there is a personnel record sheet containing all the personal information of
the newly joined employees.
HRD MEASURES
Key measures of HRD are as follows: -
• Identify human resource requirements, job satisfaction and skill needs
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• Evaluate and select suitable personnel
• Maintain the competence of personnel through HRD methods
• A personnel record sheet id prepared for every personnel
• New appointments are put on orientation training for one to two weeks of duration
• Department head will assess the training needs and forward it to HRD unit head
HR department committee will examine the training requirements forwarded to the HR department
head and this committee prepares the training calendar
• Drinking water
• Toilets
• Washing facilities
• Canteen
• Shift allowance
• Maternity benefits
• Occupational safety.
• Educational loans
• Workers cooperatives
• Recreational facilities
• Vocational facilities
• Incentives
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• Medical facilities
• Transportation subsidy
• Housing facility
PERFOMANCE APPRAISAL
For officer’s annual performance appraisals are carried out once in a year. The schemes are carried
out on 31st December and are collected by 15th of January in the following year. For workers, the
performance appraisal will be carried out when they become eligible for a grade change. During the
probation and training period, appraisals are carried out every quarter. Various appraisal forms are
carried out. Every year appraisal reports are obtained from employees in a specific format. Job
knowledge, interpersonal skills, communication skills, efficiency, quality of work, initiative skills,
decision making skills etc are being assessed. For assessments questionnaires are also prepared. The
appraisal reports are then placed before the recruitment committee. In case of officer’s a three-stage
appraisal is performed. In first stage, a self-appraisal is carried out by them. This is followed by the
departmental head which in turn is followed by an appraisal by divisional head.
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FINANCE DEPARTMENT
Figure 4
DUTIES AND RESPONSIBILITIES
DESIGNATION: DEPUTY GENERAL MANAGER FINANCE AND COST
He is the head of the finance department
Capital Structure
Authorized capital: 200lakhs
Paid up capital :1500900
Equity shares of 100 each- 161.46 lakh (fully paid and held by govt. Of Kerala)
Functions of finance department
1. Management of receipt
Payment from dealers is received only through marketing department. They issue proper
receipts customer wise/dealer wise. There will be a debit outstanding and it must be informed to
marketing development once in a month. Insurance, freight outward, bank negotiation etc are
accounted and maintained to arrive at the cost of sales.
2. Management of payments
Due to the availability of funds, payments commitments are honored on the due dates. All the
payments are supported by approved vouchers. Payments are passed mainly on the basis of IGRR.
Advance payments are settled within a time of 45 days. Non- receipts/delayed receipts etc. are
brought by cheque/ DD
3. Budget and budgetary control
The annual budgets of the company arc prepared both for the capital and revenue based on
the requirements furnished by various units and departments. The requests of the departments are
analyzed only after consulting with various departmental heads and corporate divisional management
group and finalized only on the basis of the disposition of funds. These budgets are presented before
the management for approval. The budget is reviewed half yearly. If some changes are occurred, they
are submitted to management/board through a revised budget for approval.
4. Auditing
Internal audit is mainly based on corporate functioning. The main function of this department
is to ensure that policy decision of the management is strictly followed by the functional departments
and is verified by the internal audit.
5. Costing
Costing records are maintained-as per the cost accounting rules. They are mainly subjected
to cost audit ordered by company law board. Costing department also advices management and
departments, which are the potential areas of cost reduction. Mainly costing departments analyses
36
cost of production on a yearly basis costing department advices accounts department the cost of
rejection as per warranty claims.
6. Statutory transactions
Sales tax income tax/TDS certificates/C-format care issued. They are properly accounted and
proper time settlements are made. Salaries and other payments, remittances and recovery etc. in the
case of employees are done in a time.
7. Management of Assets
Finance department ensure that the entire assets of the company are utilized to the most
efficient manner and they are secured against all possible risks. For that Finance department maintain
the records of all assets including Plant & Machinery, Fixed Assets, Furniture and Fittings of the
company. To assess the plant utilization, break down and preventive maintenance cost of the
company assets is analyzed.
8. Management of Units
All the units are under corporate control from head office. Unit inspections are carried out by
periodic intervals and policy derivations if any are brought to the notice of corrective actions.
Funds required for all units are arranged by the finance dept based on the budget sanctions and to the
requirements of units. Internal audit dept is vested with corporate functions. This dept audits the
account of units and confirms the compliance.
9. MIS
The reports like Bank balance position, consolidated Receipts and payments, Monthly
operation report, Internal audit report, Statement of stock rejection, Negotiation documents, Pending
Clearance, Reconciliation statement of dealers and vendors etc. are given to the management for
proper control and policy formulation.
BANKERS OF KAMCO
UNION BANK OF INDIA
FEDERAL BANK
CANARA BANK
SBI
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PRODUCTION DEPARTMENT
Figure 6
DUTIES AND RESPONSIBILITIES
DESIGNATION: MANAGER PRODUCTION
• He is in charge of production department
• Plan and organize the assembly of power tiller as per standards to achieve the target
• Ensure proper procedures and systems are followed
• Ensure quality as per standards
• Maintain good quality of paint and painted components as per standards
• Maintain good discipline and housekeeping in the department
• Maintain proper accounts of all transactions
• Attend any other official work as directed by the superiors
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• Coordinate assembly rejections/damage settlement work, annual stock statements of work in
progress, procurement of proper tools, accessories required for the assembly work and its
proper maintenance
The production is the largest department of the company. Under the production department there are
mainly 2 sections
Assembly shop
Machine shop
Machine shop
Company has got a modern machine shop with special purpose machine, which ensure
conformity with prescribed quality standards. Inspection at various stages of manufacturing is carried
out which help in reducing the process rejection to the minimum. The workforce is qualified and
fully experienced which makes the right contribution to the process. In machine shop there is a
process chart or written document.
The material purchased by the purchase dept moves to the store. From there, the material is sends to
the QA. After that it sends to the machine shop and there the process like milling, drilling, turning &
boring, grinding etc. are doing on the materials. For getting the products, materials are used in
39
assembly shop. From the machine shop the finished components are not directly sending to the
assembly shop. It will send to the QA dept for inspection and is send to the stores thereafter.
Assembly shop
Assembly is one of the major sections in production dept. The finished components are taken
from the stores are sent to the assembly required. The engine assembling is one of the major works
in the assembly. After testing the assembled engines, they send to the painting sections. Through
different transmission in the assembly, we get the finished product. In case of the power tiller, two
types of engines are used. They are diesel engines and DI engine. The assembly consists of two
divisions.
a) Assembling
b) Painting booth
Assembling: The assembly line consists of an engine line, a transmission line and a tiller
assembly line. Transmission and engine assemblies converged to the tiller assembly line where
finished power tiller is produced.
The following process takes place in the transmission line:
T1: main gear case, Axle gear case, axle shaft, Fourth shaft etc
T2: gear is set; axillaries gear case setting, brake setting etc…
T3: upper cover, central gear case for blade, clutch assembly, brake lever, low speed and high-
speed lever.
After testing the engines are sent to the painting section.
Painting booth: In Kamco there is a modern painting system for the components and assemblies
where unbaked liquid paints are used. Seven tank system of pre-treatment is employed. Paints and
chemicals needed for this system are produced only from well-known manufactures. After cleaning
the components, it will go for painting through a conveyor belt, and after painting it will go into the
oven through the belt.
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Again, the item is dipped in a solution containing 35% HCL for about 20. This is
mainly done to remove rust.
Process 4: Phosphate
Again, the item is dipped in a solution containing phosphate content for about 45
minutes. After this process the surface of the component will be completely cleaned.
Process 6: Water Rinsing The component is washed with water.
Process 7: Passivation Here the component is dipped in a solution containing chromic acid for about
20 minutes.
After cleaning the components, it will go for painting through a conveyer belt and
after painting it will go to the oven through the belt. Mainly they are using two colors
for painting, one is Ash and the other one is Post office Red.
The population of tiller is about two and a half lakhs and the weight of tiller is 430
kgs consisting of 740 components. The final product, tiller is finally checked to
see whether there is leak or produces abnormal sound.
The maintenance measure followed here is Total Preventive Maintenance (TPM)
which is a Japanese concept. Under maintenance department there are two types
of maintenance rooms. They are civil maintenance and electrical maintenance. Once
in 90 days maintenance is done. Another major aspect of KAMCO is zero down time
which leads to continuous production.
In this company 67% is considered as minimum productivity for an employee. An
employee is considered eligible for getting production incentive only if he crosses this
minimum productivity line. During early periods 3000 tillers were produced, but has
been raised to 5000.
Production planning is carried out when the production budget is made. Production
figures are decided upon at the beginning of the year. Production quotas for each
month are to be met. The daily requirement of production is communicated by the
manager (production) to the shift supervisors. Daily production figures may be
flexible as long as the monthly quotas are met
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QUALITY ASSURANCE DEPARTMENT
Figure 7
DUTIES AND RESPONSIBILITIES
DESIGNATION: MANAGER
He is the head of quality assurance department and responsible for quality assurance activities mainly
by
• Inspection of bought out, in-plant and raw materials component as per quality standard
• Approval of company products as per quality standards
• Maintain standards room and calibration of company instruments and gauges used for
components/product/process in the company.
• Clearance of non-conformity components as per requirement
• Initiate appropriate corrective actions as per quality system procedure
• Initiate and coordinate with vendors to improve the quality and reduce line rejections
• Recommend and advice marketing department on warranty claims
• Ensure adequate care and supervision on maintaining the ISO system procedure
• Sample inspection of components
• Arranging finished tiller inspection and final product as per quality standards
• Analyze and settle warranty claims of the product
• Project requirement of instruments and gauges
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• Coordinate with other departments to achieve and maintain quality to the products
• Coordinate and monitor the activities in the departments in all units
• Finalize and analyze assembly rejections
• Document control of all activities like IGRR, RIR, material test certificates, self- inspection
report, drawing, quality plan, product inspection and its relevant data entry into the system
• In-charge of in-plant inspection, periodic confirmatory inspection and sample inspection
• Maintenance of stock register of tools, gauges, and instruments and its timely replacement
and procurement
• In charge of department ISO activities and document control
• In charge of functions of QA activities in all units and management representative
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MATERIAL DEPARTMENTS
Figure 8
DUTIES AND RESPONSIBILITIES
DESIGNATION: SENIOR MANAGER MATERIALS
• He is in charge of Materials department
• He is responsible for making all items required for production and for other purposes as per
requirement by timely follow up with supplier’s delegate and subdelegate the work in the
department among the officers and other staffs.
• Coordinate and control the smooth functioning of the department and to get the required
result.
• Maintain discipline and cleanliness in the department
• Issue purchase orders, work orders for all the units based on the budgeted production and
requirements projected by the units.
• Issue amendments to P.O/W.O for all units for affecting changes in price, terms and
conditions.
• Developing vendors as per procedure QSP/PUR/06
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• Initiate actions for procurement and follow up of components monitor and control inventory
level, do liaison work with vendors and other departments such as store, quality assurance,
accounts etc.
• Initiative actions for collecting date for evaluating the performance of vendors and give
feedback information to them in order to improve their performance
DESIGNATION: MANAGER 1
He will directly report to senior manager materials (HOD)
• Responsible for tender’s preparation, release, opening of tenders
• Interaction with suppliers and tenders for ensuring the smooth functioning of tender process.
DESIGNATION: MANAGER 2
He will directly report to the senior manager materials
• Responsible for release of purchase orders, amendment for components, general items and
capital items
• ISO related work related to materials department
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PURCHASING PROCESS AT KAMCO
A corporate purchasing system is being followed in kamco. All the other units of kamco give their
material requirements to the head office (Athani Unit) and the head office purchases the materials
for all the other 4 units.
Procedure:
First of all, the production department prepares a budget based on the raw material requirement. The
budget contains the details regarding the raw material needed such as quantity, amount, name of
suppliers etc. All the other departments also prepare budget based on the requirements. The budgets
are then compiled by finance department. The budget has to be approved by the managing director.
There will be a total amount which is to be allotted to Different departments.
After the budget approval, the list of raw materials is sent to purchasing department. The purchase
department places the purchasing order. The purchasing order contains the details regarding the
quantity required, rate, payment terms, suppliers name and address etc. The order is then handed over
to purchase department. The purchase department then invites quotation from approved vendors. The
purchase department then prepares a comparative statement on the basis of the received quotation
this is to select the most economical quotations which satisfies the technical requirements for each
specified material. When the comparative statement is prepared purchase department conducts a
scrutiny on the comparative statement and categorize the vendors into 3 categories based on rates
offered, they are:
L1: Lowest quoted rate
L2: Second lowest rate
L3: Third lowest rate
L1 category will be offered 60% of the requirement, L2 and L3 will be offered to supply 20% each
if they are willing to supply at the L1 rate. Kamco used to gives awards for the best vendors. It will
help the company to get quality product at the right time. Company has regular suppliers and they
are ready to give materials as per the requirements of the company. So, at present company is not
conducting any vendor development programs. If necessary, the vendor development committee
recommends new vendors and maintains the existing list
If the quotations seem to suit the terms and conditions, the purchasing department sends a purchase
proposal. Purchasing manager is in charge of Sending purchase proposal along with the approval of
his superiors.
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Assistant engineers are in charge of inspecting the raw material of tiller Items. All other general items
are handled by respective departments.
If the item to be purchased is machinery, a committee will be formed to study its requirement in the
company. If it is a general item like computers, office furniture, then also an enquiry is conducted
before forwarding the purchase proposal.
Vendor Rating:
In KAMCO, vendors are classified into 3 categories -A, B and C. Company gives these grades to
the vendors depending upon some factors like best quality, giving the materials at right time and
maintaining good relations with the company etc. If a vendor gets ‘A’ grade, that means company
trusts the vendor. The company takes the same product from the vendor without any initial
inspection. So, the vendor who gets ‘A’ grade has certain commitment towards the company. They
need to maintain relationship without any interruption. So, they supply quality goods at right time.
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STORES DEPARTMENTS
Figure 9
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RESEARCH AND DEVELOPMENT DEPARTMENT
Figure 10
DUTIES AND RESPONSIBILITIES
DESIGNATION: MANAGER RESEARCH AND DEVELOPMENT DEPARTMENT
He is in charge of the research and development department
• Full charge of research and development department
• Corporate functional responsibilities of research and development
• Any other job assigned by superiors
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MAINTENANCE DEPARTMENT
Figure 11
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• Maintain records of preventive breakdown maintenance like history cards of equipment and
appraise the status to HOD.
• Maintain and coordinate subordinate staff to supervise and maintain substation, compressor
and ensure the records are maintained properly
• Ensure proper departmental overall functions and instruct the concerned as and when
necessary.
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SYSTEMS DEPARTMENT
Figure 12
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• Achieving compliance with key regulations, both internal and external security audits,
hardware and system software requirements for all locations
• Internal audit if in built security systems on regular basis
• Maintenance and support of hardware and system software for all locations
• Network administration and remote connectivity of units
• Network management support
• Data backup in all units
• Implementation of virus protection and maintenance
• Production incentive processing
• Work in coordination with DGM systems for ensuring better performance of systems
department
System department is still in updating process. All the four units are connected through internet and
all the four units have their servers. In this corporate unit each department is connected through LAN.
The systems departments use a customized ERP (Enterprise Resource Planning) package, backed
with oracle. Company’s system department is not as much developed, so it is not used in any part of
production. There is an in-built MIS function in ERP package and these packages are divided into
different modules. Each module is for each department, by the help of these modules, department
can transact the data’s and it makes the work easy.
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The module incorporated in ERP package used are the Finance Module, Marketing Module,
Inventory Module and the Human Resource Management Module
Finance module
Marketing module
• sales accounting
Inventory module
Inventory module assists both material department and stores department. This deals with all the
relevant details of the inventories as well as the materials. This module in connected to all production
units like Kanjikode, Kalamassery, Mala, Valiyavelicham and the raw materials and finished goods
details are recorded in this module and are reported to the central store and goods are issued and
received by the central store department.
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PURCHASE DEPARTMENT
Figure 13
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• Carry out follow up actions with vendors and ensure availability of components and
accessories to maintain production as per target
• Monitor supplies from sub-contractors
• Do liaisons work with other department like stores, quality assurance and finance department
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CHAPTER 4
SWOT ANALYSIS
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Strength
• Excellent distribution network through dealers- it has around 60 trusted dealers in around 23
states.
• Financially sound and maintains good industrial relation – has fixed deposit of more than 35
crores and has been running for profits for the last30 years.
• Good brand name and image – the product of kamco seldom fails of required maintenance.
Weaknesses
• Political interference.
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• Manual processing is another disadvantage.
• Time conception is difficult as every minute thing requires approval from state government
eg: approval of schemes.
• High transportation cost- all the four units are located in Kerala and the potential market is
north east, the transportation cost is high.
Opportunities
• Diversification programs.
• The trustable brand image makes an opportunity to grow more good customers.
Threats
• Political interference.
• Wide subsidy.
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• Liberalization, privatization and globalization opened the Indian markets to the global
players. These players are coming with highly developed low-cost products which may attract
its potential customers.
• Elements in the environment that could cause trouble for the business project.
• Misuse of subsidy.
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CHAPTER 5
FUNCTIONAL HIGHLIGHTS
ACROSS KEY RESULT AREAS
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The key result area of KAMCO tillers and reapers.
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CHAPTER 6
FINDINGS, RECOMMENDATIONS
AND CONCLUSIONS
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FINDINGS
• kamco is using very old machinery for production
• lack of updation
• majority of employees are contract workers for 1 year
• frequent change of MD
• Political interference
• Lack of support from Government
• Lot of time is wasted during production for movement for product from one to another
• Lack of staff
RECOMMENDATIONS
• Approach government for increasing staff strength
• Avoid contract employees
• Expand the international as well as domestic market
• Appoint for franchise throughout the country
• Increase the production capacity
SUGGESTIONS
• Look forward for automation
• Use of conveyers
• Use the shutdown hangers for production of products in demand
• Bring out new and innovative products to the market
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REFERENCES/BIBLIOGRAPHY
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REFERENCES
• http://www.kamcoindia.com/
• https://www.wikipedia.org/
• (PAULSON, 2017, p. ORGANISATION STUDY AT KAMCO ATHANI UNIT)
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