INDUSTRIAL PROFILE

INDUSTRIAL PROFILE :

An Industry, which has undergone a radical shift in its paradigm thinking, the Indian machine tool industry is
now recognized as a provider of low-cost high quality lean manufacturing solutions. The industry resiliently
supports its entire user to enhance productivity as well as improve competitiveness, for the betterment of the
final customer.
 Being an integral sector, growth of the machine tool industry has an immense bearing on the entire
economy, especially India’s manufacturing industry. And is even more crucial for the development of the
country’s strategic segments such as defense, railways, space and atomic energy.

World over too, industrialized – advanced countries have created market niches on the back of the well
developed and supportive machine tool sector In India as well, indigenous machine tools have the highest
impact on the capital output ratios. Machine tools consumption of Rs. 1000 Crore truly supports the
advancement of the country’s engineering sector, output of which is estimated to worth over Rs. 1,50,000 crore.

Historical Background

Machine tools were manufactured as early as 1890, but were poor in quality and lacked standardization. After
1930 machine tools of a reasonably good quality began to be produced in India principally by P N Datta &
Company in Calcutta, Copper Engineering works at Satara and The Indian Machinery Company at Dasnagar
near Calcutta. These enterprises, which were the pioneer of the machine tools making in India, made mostly
sliding, surfacing and screw cutting lathe of the head stock types. However all the enterprises suffered from the
absence of the ready market for their products, mainly because of competition from established manufacturers
in England.

The outbreak of the 2nd world war, India became the main base of supply and production of the war
materials for the British and the allies’ army in the east there was a tool, although, import of machines tools
continued on a reduced scale.

Throughout 1936 and 1940 the situation become increasing more precarious. In 1941 the government of India
passed the machine tools control order whose main object was to make an inventory of machine tools that could
be obtained in India and regulate and improve production so as to meet the needs of the ordinance factories and
other war industries. The machine tool control laid the foundation of machine tool industry in India.

Growth and Development

Machine tools might not be a match for its better-known cousin, Information technology (IT) that has
put Bangalore on the global map. But no one can deny the fact that much before IT even got into the lexicon,
Bangalore had made rapid strides as the machine tool capital of India. A position it has held for over five
decades despite competition and hiccups.

Today, there is every indication that Bangalore is consolidating its position at the top. Bangalore is the
home to four of the Top 10 of the largest players in the Indian machine tool industry. Some of the major
companies have had consisted growth over the years and Bangalore contributes over 60% of the total output of
the Indian machine tool industry.

It is the preferred manufacturing base of the most machine tool procedures as it has a well- knit network
of makers of machine tool accessories and sub-suppliers. Makino and Toyota Kirloskar Auto Parts are among
those which are expanding aggressively in the city.

Before we get into facts and figures, let us see how Bangalore began its innings as the machine
tool hub.

In 1952, the then Prime Minister, Jawaharlal Nehru, realized that development of a domestic machine tool
organization was key to the strategic and economic growth of the country.
 Driven by this vision, a decision was taken to establish machine tools unit in Bangalore and HMT came
into existence.

HMT from then on and till now, has played the anchor role for the entire industry’s development. One of
the key drivers of Bangalore’s development has been the fact that people from HMT branched out to start on
their own, thus, leading to symbiotic growth of the industry around a single organization.

A case point would be Ace designers. Simultaneously around this time, Mysore Kirloskar grew rapidly
to become a segment leader in certain areas of machine tools. HMT, Mysore Kirloskar and the spun-offs
contributed to significant capacity established in Bangalore. Many of this spun-offs grew during this point,
leading to Bangalore’s eminence all though. A good example would be the ACE group, which had a turnover of
Rs.11.40 crore in 1994; the group’s turnover shot up to Rs. 64.60 crore in 1999 and continues to growth.

Companies such as BFW also came into their own around this time, leading to overall growth and
momentum.

In the late 90’s couple of major developments happened, which further led to Bangalore’s position being
fortified. These include the south becoming a hub for major automotive ventures such as ford, Hyundai, Toyota,
Volvo, Ashok Leyland and TVS, and there was consistent demand, which ensured that Bangalore stayed in the
picture.

Global majors such as Makino set up bases in the city and started expanding adding to allure of the city.
All this led to the development of a network of suppliers and associates which other centers found difficult to
replicate.

Says Mr. Srinivas Shirgurkar, President of IMTMA (Indian Machine Tool Manufactures
Association), the single point reference body for the industry: “Today,

Bangalore contributes to over 60% of the total machine tool output of this country and is home to four of the top
10 players in the industry. A concentration hitherto unmatched in many other sectors though there has been
concentrations of various sectors in the certain regions or belts”
 “With automotive and automotive components sector (which together contributes over 55% to the
machine tool demand) expanding further in this region, I see Bangalore’s pre – eminent position as the ‘first
city of the machine tools industry’ only growing”.

If one still needs proof o Bangalore’s position, it comes in the form of a recent decision of Toyota
Kirloskar Auto Parts to make Bangalore its south – East Asian base for the export of automotive components
with additional investment of over Rs. 250 crore.

It was, thus, a fitting tribute to the city that one of the largest shows of the industry – NMTS 2002- had
been held here for the first time from August 22 – 26 at the Peenya Industrial Area. And the recent IMTEX –
07 held in the month of February – March.

NMTS 2002 and IMTEX had showcased the finest range of indigenous product innovations, complete
range of application engineering, low – cost automation options and more. It would be ultimate forum of Indian
users to seek at one place their specific solutions for the complex requirements.

New Developments in Indian Machine Tool Industry

1. HMT’s CNC Drilling and Tapping Centre

2. HMT’s Angular plunge grinding machine and MGTL’s CNC Grinder

3. Ace Designers high precision turning centre

4. Ace Manufacturer’s CNC Milling Machine.

Structure of the Industry

 Machine tool industry in India comprises about 450 manufacturers with 150 units in the organized
sector. Almost 70% of the production in India is contributed by ten major companies of this industry. And over
three – quarters of the total machines tool production in the company comes out of the ISO certified companies
Many machine tool manufacturers have also obtained CE marking certification, in keeping with requirements
of the European markets. The industry has an installed capacity of over Rs. 10,000 million and employs a
workforce totaling 65,000 skilled and unskilled personnel.

Machine tool industry in India is scattered all over the country. The hub of manufacturing activities,
however, is concentrated in places like Mumbai and Pune in Maharashtra; Batala, Jalandhar and Ludhiana in
Punjab; Ahmadabad, Baroda, Jamnagar, Rajkot, and Surendranagar in Gujarat; Coimbatore and Chennai
(Madras) in Tamil Nadu; some parts in East India and Bangalore in Karnataka.

Bangalore is considered as the hub for the Indian machine tool industry. The city, for instance, houses
HMT Machine Tools Ltd., a company that manufactures nearly 32% of the total machine tool industry’s
output.

Manufacturing Range

The Indian machine tool industry manufacturers almost the complete range of metal – cutting and metal
– forming machine tools. Customized in nature, the products form the Indian basket comprise conventional
machine tools as well as Computer Numerical Controlled (CNC) machines. There are other variants offered

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by Indian manufactures too, including special purpose machines (SPM), Robotics, handing systems and TPM
– friendly machines.

Efforts within the industry are now on to better the features of CNC machines, and provide further value
additions at lower and lower costs, to meet specific requirements of the users. Based on the perception of
emerging trends and current demands, CNC segment could be the driver of growth for the machine tool industry
in India.

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 COMPANY PROFILE

COMPANY PROFILE

a. Background and inception of the company

 Hindustan Machine Tools in a Public Limited Company started in 1955 and first is given in 1955.
HMT Ltd was Incorporated as HMT Ltd on 07/02/1953 has branched into 16 factories, 24 Divisions
and 29000 employees into 10 different states.
Jawaharlal Nehru Inaugurated HMT are remarked it as “HMT’S gift to country and jewel of Country.

Objective:
 Build mother machines.
 To produce needs of country like Agriculture, Transport and Defence.
 To Encourage the modernization of India Industry through Supply of Engineering Goods and Services
of world class excellence.
 To maintain technological leadership through continuous Efforts to update production technology and
manufacturing methods.
 To Globalize our Operations by developing a mix of international markets and business.
 To ensure a satisfactory return on Capital employed to meet Growth needs and aspirations of our
stakeholders.
 To present an active, pleasant and productive working environment.
 To Improve and Sustain Quality of work life for employees of country.
 To Develop and retain human skills and talents necessary for corporate growth and performance
excellence in all functions.
 To achieve sustainable competitive advantage through value edge and technological leadership in
products and services of company.

b. Nature of the business carried:

HMT Limited, the pioneer in Machine Tools Industry in India and manufacturers of a diversified range of
products has incorporated “HMT MACHINE TOOLS LIMITED” as its fully owned subsidiary on 9 th August
1999.

“HMT MACHINE TOOLS LIMITED” (HMT-MTL) is a Multi unit, Multi location, Multi technology
Company manufacturing a wide of “STATE-OF-THE-ART” Machine Tools. HMT-MTL has its manufacturing
units at Five locations with each unit specialized in a particular family of Machines. The sales and Service
network is spread across the length and breadth of the country.

As leading manufacturer of Machine Tools in India HMT-MTL provides.

The best of products in terms of technology, productivity and cost effectiveness.
Comprehensive Customer Support services including Application Engineering, Customer Training and After
sales service.

All the manufacturing units of HMT-MTL are ISO 9001 certified.

c. Vision, Mission and Quality Policy :

Corporate vision

 To be a leading GLOBAL ENGINEERING CONGLOMERATE focused on CUSTOMER DELIGHT

in our fields of endeavor.

Corporate Mission
 To established our selves as one of the world’s premier companies in the engineering field having
strong international competitiveness.
 To achieve market leadership in India through ensuring customer satisfaction for supplying
internationally competitive products and services.

To achieve sustained growth in the earning of the group on behalf of shareholders.

 d. Product Profile:

HMT is synonymous with excellence in precision engineering in India. HMT is built on a strong
foundation of technical know – how acquitted from world leaders in machine tools, such as ORELIKON,
MANURCHIN, GLIDE MEISTER, LEE BEER, RINO BERADI, FRITZ WEMER PEGARD. Today, HMT
machine tool expertise has been developed to such an extent that HMT can design and develop any kind of
machines. From simple lathe to multi – station transfer lines, from stand – alone CNC machine to flexible
manufacturing systems (FMS) leading to factory automation HMT’s broad rang of machines tools covers.

General – purpose machines and CNC machines are produced to meet the application needs of every
engineering industry.

1. Computer Networking control (CNC) Machines.

2. Turning Machines
3. Milling Machines
4. Drilling Machines
5. Grinding Machines
6. Boring Machines
7. Broaching Machines
8. Special purpose Machines
9. Other Products :

 Metal forming
 Die costing and plastic machinery
 Printing machines

 Food processing machinery

 Tractors
  Wrist watches
 Quartz watches
 Bearings
 Precision ball screw
 Recondition.

e. Area of Operation:

HMT machine tools ltd operates nationally in different places

Bangalore 1953
Pinjore 1963
Kalamassery 1966
Hyderabad 1967
Ajmer 1975

f. Ownership Pattern:

It is a Public limited company which is fully owned and controlled by central government.

g. Competitors Information:
 Micromatic
 Parishudh – Ghaziabad Delhi – they produce only grinding machines.
 Elb – Baroda – They manufacture surface grinders.

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  HEC (Heavy Engineering Corporation) –they manufacture heavy duty lathes.
 Ace Designers – Bangalore – They manufacture turning center.
 Mico- Bangalore – SPM’s
 Kirloskar – Mysore
 Kirloskar warna – Harihar
 BFW – Bangalore

h. Infrastructural facilities:

HMT Machine tools ltd has one of the best infrastructural facilities.
Spread over 500 acres of campus including residential township.

CNC Machines for Metal Cutting & Metal Forming

CNC Coordinate Measuring Machines
Heat Treatment Facilities
Precision Measuring & Inspection Facilities
Facilities for calibration of Measuring & Testing equipments.
There are canteen facilities
There is an welfare section

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 i. Achievement / Award :

YEAR AWARD INSTITUTED BY

1970-71 Excellent performance in export Govt. of Mysore
1971-72 Outstanding Export Govt. of Mysore
Performance
1971-72 Outstanding Export EEPC
Performance
1975-76 National Award for outstanding Export Ministry of Commerce
Performance
1982-83 Export Excellence EEPC
1982-83 Meritorious performance in the field of Ministry of Commerce
Export
1983-84 Export Excellence EEPC
1984-85 Export Excellence EEPC
1984-85 Meritorious Performance in the field of Ministry of Commerce
exports
1985-86 Export excellence EEPC
1986-87 Export excellence EEPC
1987-88 Export excellence EEPC
1995-96 Regional “top Exports Chennai
Shields’ Project exports
1996-97 Regional “Top Exports Chennai
Shields’ Project exports
1997-98 All India Trophy for Highest Chennai
1998-99 Regional Trophy for highest Kolkata
2001-02 Regional Trophy for highest Kolkata
2002-03 Exporter Chennai
2002-03 All India Highest Export Trophy Engineering export
Promotion council, Kolkata

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j. Work flow model (End to End):

Customers

Sales /
Marketing
 Design

Planning

Progress Report

Manufacturing Inspection

Assembly Inspection

Machine
Trials

Dispatch

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k. Future growth and prospectus:

HMT ltd strongly believes to meet future challenges deploying appropriate technologies in all the business
segments. They have changed out a list to improve there outlook by giving.

 Value based products to customer in area like price.

 Quality development
 HRD
k. Future growth and prospectus :
HMT ltd strongly believes to meet future challenges deploying appropriate technologies in all the business
segments. They have changed out a list to improve there outlook by giving.

 Value based products to customer in area like price.

 Quality development

 HRD

Machine Tool: Prospects next 3-5 years

 India emerging as global sourcing hub for auto/auto components Industry – exports expected to increase
from around Rs. 2 billion currently to Rs. 25 billion by 2015 : Mc Kinsey report.

 Industry has a large developed market for export.

- 34 billion U.S. dollar export market.

- Our exports are 13 million US dollars (2006).

 Cost effective CNC technology will drive market.

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 Product groups – machines lead to re-alignment: Turn-mill centers, Multi function centers, Multi
Tasking Machines etc.

 Product quality, productivity, reliability, delivery and pre and post sales customer support services
would dictate business.
  All major product groups anticipated to grow at an average CARG of 20% for the next 3 years.

Performance Highlights: 2007-08

 Sales: Rs. 227 Cr. Growth of 6%

 Order procurement: Rs. 230 Cr. Growth of 2%

 Orders improved from the following sectors over previous year:

 Auto and Auto Ancy : Rs. 5626L – 39% 

 Defence : Rs.3999L – 5 % 

 Metal and mining : Rs.1198L – 97% 

 Railways : Rs.1155L – 98% 

 Orders declined in the following sectors:

 Others: Rs. 3976L – 32% 

 Agriculture: Rs. 1647L – 24% 

 Power: Rs. 1079L – 10%

 52 major customers constituted 60% of the total orders procured valued at Rs. S13921 Lakhs

 Continued to demonstrate strength in providing Hitech high value manufacturing solutions.

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 Nearly 41% value of orders intake in for such machines.

 61 Nos. single orders valued over Rs. 75 lakhs have been procured valuing Rs. 205 Cr. For 207-08.
 MoU signed with M/s Mauser, Werke Germany for manufacture of high speed high technology
Mauser machining centers in India

 MoU signed with M/s Pegard Productcs, Belgium for manufacture and supply of upgraded
range of Boring Machines of Pegard make in India and abroad.

 MoU signed with M/s Rafatmet, Poland for joint working for supply of Surface wheel Lathes to
Indian Railways.

 Participated in IMTEX 2007 EXHIBITION HELD IN Bangalore from 18th to 25th January 2007.
More than 500 enquiries valued around Rs. 210 Cr. Were received during the exhibition.

 Conducted a survey by a third party to understand the current customer satisfaction levels.

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 MICKINSEY’S
7S FRAME WORK
McKINSEY’7S FRAME WORK
The McKinsey 75 model is a widely used frame work used for viewing the interrelationship of strategy
formulation and implementation. It helps to focus managers’ attention on the importance of linking the chosen
strategy to a variety of activities that can affect the implementation of the strategy. Originally developed as a
way of thinking more broadly about the problems of organizing effectively, the 7s provides a tool for judging
“do ability” of strategies.

The McKinsey 7S Model

Structure

Strategy Systems

Shared
Values

Skills Style

Staff

The conventional wisdom used to be that if you first get the strategy right the right organization follows. And
when most people in western cultures think about organizations they think structure. To think comprehensively
about a new strategy, a manager must think of this company as a unique culture and must think about the ability
of the company to get anything about the company fundamental accomplished as a matter of moving the whole
culture.

This model should be thought of needles as a set of seven compasses. When the needles are aligned the
company is “organized”. When they are not the company is

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not organized even if the structure looks straight. If the 7s model suggests that strategy implementation would
be difficult managers can either search for other strategic options or go-ahead and concentrate special attention
on the problems of execution suggested by the framework.

The 7s model is better known as McKinsey 7s. This is because the two persons who developed this method.
Tom peters and Robert water man have been consultants at McKinsey and

 Man Management

 Communication]

 Function skill

 Decision making

The skills required for middle management are similar to that of the supervisors. The skills required for top
management are:

 Vision

 Strategy

 Guiding the business environment

 Leadership skills

 Managing the corporate image

 Corporate governance

Shared Values / Super ordinate goals : Guiding concepts, fundamental ideas around which a business
is built must be simple, usually stated at abstract level, have a great meaning inside the organization even
though outsiders may not see or understand them.

Effective organization achieve a fit between these 7 elements. This criterion is the origin of the other name of
the model : diagnostic model for organizational effectiveness.

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In change processes, many organizations focus their efforts on the Hard S’s, Strategy, Structure, Systems. They
care less for the Sot S’s, Staff, Style and Shared Values. Peters and Waterman in “In search of excellence”
commented however that most successful companies work hard at this soft S’s. The soft factors can make or
break a successful change process, since new structures and strategies are difficult to build upon inappropriate
cultures and values.

The 7-S model is a valuable tool to initiate change process and to give direction.

A helpful application is to determine the current state of each element and to compare this with the ideal state.
Based on this it is possible to develop action plans to achieve the intended stated.

Structure:
The McKinsey consultants point out that today’s complex and ever changing environment, a successful
organization may make temporary structural changes to cope with specific strategic task without abandoning
basic structural divisions through out the organization sales.

The design of an organization structure is a critical task top management of an organization.

The Structure is basically a hierarchy of authority and responsibility. It may be regarded as a network of role,
relationship, assigned work and delegation of employees.

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 ORGANIZATIONAL STRUCTURE IN HMT

MANAGING DIRECTOR

GM(MBX) GM(MTP) GM(MTK) GM(MTH) GM(MTA)

Director GM GM GM
Bangalore Pinjore Kalamaserry Hyderabad Ajmeerd
Technology Complex (Marketing) (finance) (HRM)
Complex Complex Complex Complex

Manufacturing Unit s
GM(N)- GM(E)- GM(W)- GM(S)-
New Delhi Kolkata Kolkata Chenni

Regional Offices

DEPARTMENTAL FUNCTIONS:

PERSONNEL ADMINISTRATION AND HUMAN RESOURCES

OF DEVELOPMENT:
Administration company is looked after personnel Administration Department the stationery obligations such
as maintenance of a personal records of employees according to their ticket numbers, attendance making, time
keeping, filing records and documents all come under preview of administration department it also maintains
security grades and sweeps

Department Structure:
In HMT – MBX the HRM department is consists of five sections, such as;

a) Establishment section
b) Training and Development Section

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 c) Industrial and Public Relations
d) Canteen
e) Welfare

HRM
Dept.

Establishment Training& Industrial Welare

Relation Canteen
Section Development Section

Section and Functions:

Recruitment

Promotions

Performance Appraisal

Transfer

VRS

Recruitment:
It is the function of HR department to recruit best candidates in fields and Engineering, finance, marketing,
production, HR. So favor objectives of requirement HMT favors systematic scheme of centralized equipment
requirement different ways by which recruitment was some are advertising through leading newspaper, internal
recruitment, campus recruitment. But from past 8 years recruitment has stopped due to the surplus of
manpower.

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 1. An employee must have completed atleast 3 years in the grade before becoming eligible for internal
recruitment to the next higher grade

2. Employee joining a new spot on internal recruitment can not apply again for internal recruitment for a
minimum period of 2 years

3. Employees under contractual obligations should also be permitted to apply against internal
advertisement since the contractual obligations can be discharged even in their new place of posting.

Promotions:
Promotion policy in MBX is based on factor such as qualification, attendance, merit rating, standard hours,
efficiency, discipline and eligibility period.

Employees are basically divided into office cadre and wage cadre. Promotion in WG cadre are made in
accordance with eligibility criteria i.e. period completed in that particular year merit rating and standard hours
performed efficiency and promotions in offices cadre is basically on qualification.

Performance Appraisal:
It is an important an important aspect in development of human resources. It helps to access management
strength and weakness in an organization and helps in effective growth of an individual.

MBX follows a definite, well-defined method in appraisal of employees. Performance appraisal of officers
divided into these based employees Cadre.

Supervisors Executives PIDS

(PSI &II) (PS III- VI) (PS II – IX)

Performance appraisal of workers is done by taking into consideration their merit rating.

Appraisal rating of employees is given based on job performance factors and management ability factors.
According to rating:-

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 200 &> point outstanding

180 Very Good

150 Good

120 Marginal

Below 120 Poor

SALES DEPARTMENT:

Organization Chart:

Head of Sales

Sales Engineering Sales Engineering

Functions of Sales Dept:

Heads of Sales Engineering / Sales Execution Sections shall be responsible in their respective areas.
Head of Sales shall be responsible for the overall activities. Each individual employee shall be responsible
within the scope of resources available to him to implement and maintain Quality Systems and Quality Policy
requirements Sectional heads and their subordinates shall have requisite authority to fulfill their responsibility.
Preventive measures for product/process and Quality Systems non conformities shall be identified and
implemented through designated channels. During the absence of Head of Sales, the Unit Chief decides as to
who shall be incharge of these functions.

 Sales Engineering –

 Sales Execution

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Finance Department:
The Finance Department of HMT – MBX is consists of one G.M., two D.G.M., three A.G.M. The Cash,
P.F. and IBS section is taken care of by two D.G.M.s The relative works were handling by two Asst. Mangers.
The Concurrence, OBS, Excise, Main A/c, Cost & Materials and Wage Section is maintain by three A.G.M.s
including deputy managers.

In HMT – MBX, the finance department consists of 6 sections, such as;

(i) IBS (Inward Bill Section)

(ii) OBS (Outward Bill Section)

(iii) Main Accounts Section

(iv) Cost & Materials Section

(v) Wages Section

(vi) Cash Section

The finance department handles the task of investment decisions, dividend decisions, financing
decisions, financing decisions, financing decisions, liquidity decisions etc. We can say that it is the grass root
of a company, without which the company is unable to function
IBS (Inward Bills Section):
The section deals with the payments, which were made to the outsiders for suppliers. While bills were
coming they were releasing the purchase order and payments to the suppliers. This section maintains the ; (i)
Purchase order (ii) Material Inward Slip (iii) Delivery Challan / Notes / Bills. If in case these formalities were
not fulfilled than the company may not release the payments to the suppliers. After all these mention things the
payment is made to the suppliers.
The payment may be of the following types;
(a) Advance Payment
(b) Credit Payment

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(c) Sight draft

(d) Letter of credit
Objectives:-
To see the entire material brought in is accounted properly.
Payment is realized only when the supplier supplies the materials or components.
To see the Central Value Added Tax, excise duty accounted property or not.

OBS (Outward Bills Section):

However, the IBS is deals with the payment of cash to the suppliers; the outward bills section (OBS) is
doing just the opposite i.e. receipt of cash. This section basically deals with the receiving or collection of
receipts and revenues. In simple words we can say it’s the Bills receivable section. It raises the bills to receipt
of materials and delivers the sales voucher.

As per the present tariff the excise duty is 16% Education cess 2% Secondary and higher freight cess 1%
is also being charged by the government at time of payment. The company also charges for the packing 3%.
there is also CST/VAT @ 4% is applicable for outside payments i.e. other than Karnataka. In Karnataka the
KVAT is applicable @ 12.5%. the revenue were being is taken by government; the Central excise Tax is taken
by Central government while the State government is charging the Sales tax.

There are different categories of buyers such as; Government. Parties, Public sectors, Defence Private
parties, Inter units etc

Purchase Department:

Purchase department deals with the purchase or any other purchasing activities. Some time; HMT
requires some components fro other companies for production of the machines. This thing is done because in
some cases in founds that some machine tools were being costly while it’s being produced be HMT but if the
same product is being produced by other company than it is less. So HMT bring

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those components from other company who ever is producing according to their requirements. For all these
things the company issues tenders; Such as;
 a. Limited Tender (Limited to 3 to r)
b. Open Tender (Open to all)
c. Closed Tender (Strict to one)
After the invitation of the tender slip they choose the best tender proposal i.e. who ever is interested with
their proposal they will invite those units. Then HMT will give the order requirements. Than the company will
provide the goods to HMT. After getting the goods HMT will issue a Payment system, it may of different
types; i.e. Cash purchase, advance payment, Credit payment. In case of international dealings they issue a
Letter of credit or International Cheque / D.D. After all the transaction both company exchange their bills,
which called Bills of exchange

Production Department:
The production department of HMT MBX is very vast. However this department consists with the
production of components, and that is all related to different machine tools, so it consists with lot of functional
heads under this department. Under this department the divisions which were working are

I. HTC division

II. Tool Room

III. Rounds

IV. Non Rounds

V. Gears

VI. Spindles

VII. Assembly

VIII. Foundry

IX. Die casting

X. PSB Division

XI. Ball Screw Division

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XII. CRB Division

XIII. Inspection
 XIV. Maintenance

So, however these are the respective divisions of production department. The respective
divisions are related to different kind of activities with regard to production of machine tools. The products
manufactured in this unit are:
a. Gear manufacturing machines (Gear Hobbers / Shapers)
b. Radial Drilling machines and Column machines
c. Fine boring machines
d. Heavy duty Lathes
e. Grinding machines (Cylindrical and Surface, including CNC and
Hydraulic)
f. Turn Mill center (CNC0
g. Single and Multi Spindle Automatics
h. Chuck Matic machines
i. Bail screws
j. Special Purpose Machines.
k. Drill Tap center

Manufacturing Facilities:
• Experience design expertise and latest design facilities.

• Can handle machining of components of variety weighing up to 20 tons

• Up-to-date tool room and inspection facilities

• Machine shop to build huge structures with stress relieving facilities

• Machine shop to manufacture small and heavy components

• Facilities for assembly an retrofitting of heavy machine tools

• Heat treatment facilities

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• Foundry with facilities to produce heavy, small and medium castings of both
ferrous and non-ferrous alloys with facilities like pattern shop, fettling shop
 and metallurgical laboratory.
• Captive foundry of capacity 1500 MT per annum –Size of Grey Cast Iron
casting up to 12 MT & S.G. Iron up to 5.5 MT
• Can handle machining of components & assemblies of tool room class
Precision machine tools and horological machinery.
• Measurement & inspection facilities with precision machines
• Material testing laboratory
• All facilities required for plated through hole (PTH) PCB assembly like
Preparation / insertion / assembly & component soldering

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Skills and Managerial Abilities:

It includes the distinctive capabilities and dominant attributes of the enterprise, which distinguishes it from its
competitors.

a) Key Performance Factors:-

 Application of knowledge / skills
 Leadership skill
 Initiative and innovation (Creativity)
 Commitment
 Participative approach
(inclusive of intern personal relationship and team work)
b) Varying Performance factors
In terms of the varying needs and functions of the corporate cadre, unit Cadre and Supervisory
Cadre different performance factors have been identified as order
i. Corporate Cadre (PS VII and Above)
 Developing/ Appraising people
 Delegation, organization and control
 Problem Analysis and decision making
 Communication skills
 Skills and commitment to manage change
 Negotiation skills / commitment / safety conscious

ii. Unit Cadre (PS III to PS VI)

 Developing / Appraising people
 Organization and control
 Problem analysis and Decision making
 Communication skills

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 Responsiveness to change
 Negotiation skills / safety
 iii. Supervisor Cadre (PS I & PS II)
 Co-ordination and control (self and other)
 Attitudes towards learning
 Expediting Decisions
 Trouble shooting skills
 Adaptability to change
 Safety or house keeping

HMT has training center at Jalahalli, Bangalore. It is well equipped with highly technical and varies of
training provided by MBX, they are.
(a) Apprentice Training – According to employee survey we find it apprentice training is period of 3
years. Those who are applying for the apprentice should have passed SSLC.
(b)Graduate Training – The eligibility criteria is B.A., B.Com, MBA, B.E. with minimum of 21 years of
age. It is for a period of 1 year. Where the first two months basic for B.E. students and later they send to
various department and to observe the job and on the job training.
(c) Sandwich Training – The minimum quota is 57. The period for this training is 1 year. For this training
only diploma holders are eligible for this type of training.
(d)Customer Training – This is provided to customers on their request at the time of dispatch of machine
to the machine to the customer’s place.

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(e) Foreign Training – Above supervisors they send on deputation to foreign countries like Malaysia, Port
Louis, Senegal, Ethiopia and others. These who are experienced and highly qualified are send to foreign
 for training purpose in order to serve the company in future. The duration of this kind of training is 2 to
3 months or if required it may extend to 1 year also.

(f) Vocational Training

(g) Deployed Training

(h)Ex –ITI – These types of training is given to ITI students. It is of 2 to 3 months duration for basic

training on shop floor and whole training is for 1 year.

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STYLE:
 Within the framework of 7 s model style refers to patterns of actions the way management behaves and
collectively spends its time to achieve organizational goals.

STYLE AND MTB

Participative management: MTB follows and encourages the policy of

participative management culture.

Developing people: MTB believes and works to develop the organization by developing
its people whom it considers as invaluable assest.

Empowerment and autonomy: to employees after putting right man in the right job is MTB s way of
maintaining and developing highly motivated human resources to achieve professional competence and to
ensure career development of its work force.

- Top down or Bottom up

Company is following top down hierarchy

I Administrative matters the company is following Top-down hierarchy

- Authoritarian / participative

HMT has been expanding its technology - base and therefore it is essential that a realistic and effective scheme
of participative management should be evolved and implemented with an honest and concerted joint efforts by
the management and workers.

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It has been a common experience that the ‘participation management’ is often over cast by the “collective
bargaining”. Such contamination of the concepts defeats the very proposed of the participative management. It
is expedient that the ‘work related issues’ and the ‘interest related issues’ are not allowed to mingle unless
such a safeguard is provided with profound conviction and Profuse faith, of course with a pragmatic approach
coupled with positive attitudes. The participative sch3me can not achieves the desired objectives.

The participative management is the managerial style of HMT; participative management is a pre-requisite
for the industrial democracy

Objectives:
 SYNERGY from participation.
 The real participation by casting aside the collective bargaining and the ‘interest-related’ issues.
 An improved communication of the organization activities amongst different levels of the employees.
 Optimum level of Production and improved Productivity
 The general awareness about the cost-control and its effective practice
 The Industrial Democracy with a participative managerial style of functioning.
 The improved optimum utilization of the RM’s i.e. Man, Money, Machinery and Material.
 Improvement in qualitative and quantitative results.

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STRATEGY:
Strategy in a long term plan of action designed to achieve a particular goal, most often “winning”. Strategy is
differentiated from tactics or immediate actions with resources at hand by its nature of being extensively
premeditated, and often practically rehearsed. The concept of strategy has been borrowed from the military and
adapted for use in business, as in the military, strategy bridges the gap between policy and tactics. Together,
strategy and tactics bridge the gap between ends and means. Likewise, there are many strategies which are
followed here at hmt

The HMT s strategy has the following components:

In order to effectively complete in an increasingly open market, where each manufacturer of machine
tools specializes in a particular family of machines, the company as developed a comprehensive business
strategy which aims to profitably grow the company’s market share in key d growth segments and to maintain
its leadership position in the Indian machine tolls industry, the company intends to pursued continued growth
over the medium term by :

 Integrating production and increasing productivity through efficient use of existing capacity.
 Cost reduction measures.
 Increased research and development.
 Exploiting its large domestic sales and support network to increase market share.
 To present an active, pleasant and productive working environment
 To globalize the company operation, by developing a mix of international market and business

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QUALITY STRATEGY OR QUALITY POLICY

Quality is central to the MTB strategy. The quality policy of this ISO 9001 company is as follows:

• To manufacture and deliver products and services consistent with the accepted standards towards total
customer satisfaction.
• To create at all levels an environment to promote quality as a way of life with a strong sense of values
and commitment.
• To continuously train employees, improve machinery process and facilities towards productivity and
consistent quality of products and services.
• To conduct professionally with shareholders. Employees, customers, suppliers, financial institution,
government and the public
• To practice quality system confirming to ISO9001
• A separate quality assurance department headed by deputy general manager ensures quality throughout
the organization.
• To maintain quality leadership in all over products and services.
• Total customer satisfaction through Quality Goods and Services.
• Commitment of management to Quality.
• To create a culture amongst all employees towards total quality concepts.
• Total quality through performance leadership.

QUALITY ASSURANCE AND DELIVERY CONFORMANCE SYSTEM

 Quality procedures are laid down and are being implemented to meet the customer specified
needs.
 All the incoming materials are inspected and the materials are procured through approved
vendors only

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 Materials testing laboratory is well equipped to test various materials
 100% inspection is carried out during the process of manufacturing
 all finished machines undergo process capability tests at periodic intervals to achieve specified
accuracies
 design review is carried out before the releasing to production
 sub-assemblies are tested by using various test rings/CMM and recorded before taking final assembly
trials and packing
 quality records are maintained for each machine to ensure/ trace ability and to facilitate effective field
services
 committed delivery is ensured through delivery evaluation and PERT charts for monitoring various
activities
 whenever there is requirement of more number machines from a single customer, project co-ordination
is nominated who take up the entire co-ordination with the customer and the manufacturing unit to meet
the customer’s needs and or timely execution of various activities.

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System:
It refers to procedures such as information systems, manufacturing processes, budgeting and control process.
Thus it is the procedures. Thus it is the procedures, processes and competitive advantages present within the
organization.

System followed by the sale department.

PRE- ORDER CONTRACT REVIEW

PURPOSE:

To ensure that the customer requirements are understood and unit is capable of building the machine to meet the
customer requirement.

SCOPE:

Applicable to Unit products.

PROCEDURE:

1. The enquiries are received in any mode Telecom/Fax/Email/Website/Letter directly from customer or
through marketing / HMT (International).

2. If requirement is for basic machine, it will be reviewed with reference to units capability to meet the
customer requirement and offer submitted.
If any clarification required, same will be obtained from customer and offer submitted.

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 3. For tooled up/Special Execution machine requirement, the enquiry along with drawings and other
technical details received shall be forwarded to Design for preparation of tooling layouts and machine
configuration and exclusive documents forwarded to planning Department for cost estimation.

4. For CNC/Special Purpose/Special Execution machines other than standard, the design documents from
designs shall be forwarded to planning for cost estimation.

5. On receipt of Cost estimation from planning, the selling price advise will be obtained from accounts and
offer submitted to customer through Regional / Zonal Marketing Office.

6. Follow up with Marketing/ Customer for orders.

7. The Delivery of machine is based on Annual Operational Plans.

8. If customer desires Technical / Commercial discussions to resolve deviations, it will be arranged.

9. Any revisions/ changed requirements due to above will be accommodated subject to feasibility and
procedure under points 1 to 8 repeated.

POST ORDER STATE

1. Purchase Order on receipt will be scrutinized with respect to offer, check list and price list for GPMs.

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2. For any deviation/discrepancies notices, same in taken up with marketing/ customer and resolved
mutually.

3. For all special requirements of customer and tooled up machines, a Special Execution Schedule will be
released.

4. The allotment orders will be issued to the head of concerned Assembly (Mechanical and Electrical),
Inspection, Material Engineering, Planning and Progress.

5. For Tooled up Machines/Special Purpose Machines, the applicable Machine layout, Tool layout, Fixture
layout, etc. Shall be sent for customer approval/reference as per contract. The approved layouts shall be
available in Designs.

6. After the Contract is Technically/Commercially clear, Order Acceptance is released to customer.

7. For Basic Machines/GPMs, the Machines are inspected with reference to test Chart before dispatch.

8. For tooled up Machines/Special Purpose Machines, after completion of job trials, the machine is cleared
for dispatch by customer.

9. Sales will issue the Delivery Voucher covering the supply of Machine, Accessories. Tooling, Spares,
etc. as stipulated in the contract including customer supplied items components, cutting tools, gauges
etc.

10. After packing and receipt of delivery voucher from inspection, Sales Execution shall Dispatch the
machine once commercial clearance is obtained.

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STAFF:

It refers to the quality of people in the enterprise and their socialization into the organizational culture.
Traditionally staff is treated in one of the two ways. Firstly, there will be appraisal systems, payscales and
formal training. Secondly, the employee morale, attitude, motivation and behavior are considered.

Staff is divided into two grades that is PS Grade and WG Grade

The PS grades which were available in HMT – MBX are;

PS I - Junior Supervisor

PS II - Supervisors

PS III - Foreman Officers

PS IV - Deputy Manager

PS V - Manager

PS VI - Assistant General Manager

PS VII- Chief Assistant

PS VIII- Junior General Manager

PS IX - General Manger

The wage grade starts from WG I to WG VI and WS.

Responsibility and authority

The organization chart depicts the manageable positions in HRD and training department. The responsibilities
are assigned by the unit chief to the chief of HRD and training. The chief of HRD training in turn assign his
responsibility to his subordinates and delegates authority for discharging their discharging their responsibilities.
During the absence of the unit chief the next senior person will be in-charge of the HRD and Training function.

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The deputy manager (HRD) is in-charge of HRD cell and responsible for implementation of HRD Cell and
responsible for implementation of HRD activities. He will report directly to the AGM and responsible for the
following activities:

 Implementation of company goals and objectives in HRD program

 Identification of Training needs

 Preparing HRD plans and Budgets

 Arranging and carrying out of training / HRD programs

 Evaluating the flow-up effectiveness of training of HRD

 Developing internal training

Supervisors will assist Deputy Manager (HRD) in the implementation of HRD activities.

Section Head/In-Charge : In charge of purchase section and responsibility for:

 Floating enquiries

 Releasing of purchase orders

 Purchase of necessary materials

 Vendor listing

 Preparation and maintenance of approved vendor list

Supporting Staff: Will assist the section head in his work and will also be responsible for

 Floating enquiries

 Releasing of purchase orders

 Follow up with suppliers

 Computerization of purchase activity’s details

 Maintenance of records

 Administrative work.

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SHARED VALUE:

Shared values include the core values which are essential guiding principles and doctrines and core purpose
which encompass the company s business goals, how it strives to achieve them, the values it will uphold.

It is the values shared by the members of an organization.

HMTs mission and corporate objectives.

The stratergy of MTB is firmly stated in its philosophy and mission statement- “to achieve leadership and
corporate excellence in the field of industrial tools and machinery products and services”.

Leveraging the MTBs experience of having worked with the world-class players in the industry.

A strong quality culture, based on team work, professional ethics and progressive learning, reinforces MTBs
underlying values.

The concept of customer satisfaction is given prime importance in MTBs corporate philsophy.

Every challenge is an opportunity: responding to the demands of the ever-changing world of tools
manufacturing sector_MTB sees every challenge as an opportunity. It commits itself in meeting the customer
requirements in the form of quality products and services, in line with business ethics of machinery and tools
industry.

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SHARED VALUES OF HMT
 To be a leading GLOBAL ENGINEERING CONGLOMERATE focused on CUSTOMER DELIGHT in
our fields of endeavor.

 To maintain quality leadership in all over products and services.

 Total customer satisfaction through Quality Goods and Services.

 Commitment of management to Quality.

 To create a culture amongst all employees towards total quality concepts.

 Total quality through performance Leadership

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SWOT ANALYSIS
 STRENGTS
 HMT’s Machine tools had good quality Image inland and internationally.

 Business Oriented Progressive management Receptive to new ideas and technologies.

 Prove experience in offering component Oriented special purpose machine and metal forming presses
built to international standards.

 Well established R & D team sufficiently experience Development of precision and high technology
CNC products. Sub system etc.

 All India Sales and services network manned by well trained and services personal with
effective sales promotional and spare parts back up well established sales engineering groups &
sales execution.

 Skilled manpower

 Economic low volume production

 Strong and visible industry associations (IMTMA)

 Tooled up machine/ complex custom built machines.

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 WEEKNESSES

 Due to wide product range, limited CNC products, low market potential and conventional machine tools

 Delay in implementation of new system.

 Delay in commercialization of new products and low priority for products up gradation.

 Facilities are in adequate for pre/after sales services, delay in deliveries, in adequate training facilities
for high-tech machines

 Surplus manpower in certain units.

OPPORTUNITY

 Bulk requirement of machine tool like high speed/automated presses, forgoing lines for defense
production.

 Modernisation of railways, steel plant, Industrial training institutes.

 Renovation and up gradation of machine tools.

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 Increased export requirement for HMT’s range of metal cutting and metal forming fools in countries
like Africa and high technology CNC machines by advanced countries like USA.

 Growing opportunities in export market

 Liberalized economy making buying decision easier

 Better system to compete

 Larger and growing domestic market to areas

THREATS

 Government policies on liberalization will intensify competition with new entrants into the market.

 Increased competition for General Purpose Machine and Special purpose machine even from small /
medium scale manufacturers.

 Current import policy encouraging import of machine tools including second hand/ reconditioned and
customs tariffs for components not enabling indigenous manufacturers to be competitive.

 Increased input cost, power shortage etc

Resulting in erosion of profitability.
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LEARNING
EXPERIENCE
The inplant training which I got in HMT machine tools 1td. Was a new experience. While training I was
exposed to working environment of the organization. It was great experience working with the professional
personalities. There decision making skills, how they are working under pressure, efficient allocation of duties,
friendly environment, even communication with in the organization.

There are so many instances that I across in the organization. Important one is the value they are giving
to time.

Which I noticed was the way they are behaving to their visitors and customers. In some situations they will be
working under pressure. But they will interact with visitor and customers in very pleasing manner.
The industry Had various departments like HR, Marketing, Finance, Plant etc wherein the activities would take
place. During my training in the company I learnt how the department actually works in the real world

We had an visit around the factory wherein we visited each department on an day. First we visited the sales
department and then the engineering department
The next day we visited the safety department where I learnt how important safety is in the work environment
HMT has an separate medical center and an ambulance in case of any accidents.

From the human resource department I learnt that Human resource plays an important role for the existence and
development of every company. Without human resource the organization cannot run its business HMT has an
separate human resource department and around 1000 employees work wherein 333 employees are officers and
around 777 employees are workers there is an good working enivornment between the officers and the workers
 49

After the hr department we visited the finance department The basic criteria for starting a business unit are to
make profit from that. There are so many trading activities in a financial year. There for the company has to
make the records of all these activities. So these arises the used for book-keeping. And the need for an finance
department. In this department I learnt how and what is the need of money or finance in an business and on
what money is invested and what are the credit facilities available.

There is an separate department for material handling and packing from these departments I learnt how the
inventory control is handled and what is the procedure for packing the finished goods.

The members of the company were cooperative and friendly and provided me the related information. The
employees are humble and kind hearted and follows strict discipline, Punctuality and cleanliness and makes all
the members of the company follow the rules. I learned how to be punctual in a corporate world. Now I am
feeling confident to work in my future.

One important thing in my learning experience is the friendly working environment and the facilities provide to
the employees and the security guard to check before entering the campus and to maintain the records of the
employees so that they keep an track record of each and every one

In the afternoon we had half an hour for lunch. They have a good canteen facility. It is very neat.
Infact this inplant training changed my style of thinking. I started understanding what is right and what is
wrong. I learnt how to behave in a corporate world. Being an MBA student, I just had the bookish knowledge of
management and administration. But in HMT Machine Tools Ltd. they gave me practical training in various
aspects of
 50

management and administration. I am very thankful to HMT providing me this effective inplant training.

Studying mcKinsey’s 7s model with respect to HMT Machine Tools Ltd., gave me a great exposure to learn
about this company. I learned about the working of the company in the 4 weeks.

It was my privilege to be there and learn different things about the company. The staff of the company were
very much co operative.

I also gained knowledge about the manufacturing operations of the company though it was not a part of the
project.

Totally my learning experience in HMT Machine Tools Ltd was excellent.

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