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CHAPTER-1 INTRODUCTION
Organization is a systematically designed, scientifically planned, sum total of various functions co-ordinate mutually, synchronized in a format to achieve the goals and objectives of the company. The various functions which contribute to the success of Organization, which plays vital role in well functioning, are the following Departments. Finance department Engineering department Marketing & sales department Production department Design and development department Stores department Purchase department Quality procedure department
Each organization has its unique Organizational setup based on its requirements. Organizational study enlightens the following aspects of the organization. Organizational behavior Business ethics & corporate governance Employee / employer relationship
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Success story of organization Organization history and drawbacks. Managerial decision making Team work Organization motivation Quality orientation Innovation of organization Organization integrity Responsibility Quality services. Thus Organizational study gives a sum total picture of the Company in a Nutshell.
Title of the study The main aim of the study is to know the overall functioning of SVE. Objectives of the study
To understand the organization set-up and identify the right place to approach for getting work.
Method of analysis and expected contribution from the study All the data that was collected during the study was evaluated for its importance towards this study. Only the data, which threw light on the topic, was taken for consideration and recommendation for improvements in the field study. The views of various authors who are an authority in the field of this study were presented in this report for due consideration for their implementation. The expected contribution from the study is to help the organization to implement the suggestions in this report so that it can contribute towards improvement in productivity, quality and also to reduce wastage.
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The study has to be completed with in a short period of time that was available. The case study pertains to only one production unit due to the limitation of time frame. Findings are based on the records available at the production unit and the information provided by the shop floor supervisors.
transmission towers. In many cases the end product is generally a result of Fabrication and post Fabrication machining. Fabrication involves a combination of various mechanical processes including welding, soldering, brazing, forming, pressing, bending and stress removal. The welding is the major process in the fabrication industries. A structural steel machine tool base would have 75% welding Major types of welding processes are Submerged are welding used for longitudinal wilding MIG CO2 welding used for galvanized steels and steels<2.5mm thick TIG wilding for stainless steel. Manual are welding for small jobs & general steel application Sidhi Vinayaka Fab Engg Pvt Ltd was mainly established to manufacture S.S. Pressure Vessels & Stainless Steel Fabrication, Heavy Plate and Fabrication. Precision Machine Components and Stellite & Die Welding. Where all these are the semi raw materials which are required by the large industries to produce the goods.
3. COMPANY PROFILE
The industry is registered under Small Scale Industry under the Government Act. SVE is one of the leading manufacturers and suppliers of Stainless Steel Pressure Vessels, Heavy & Light Engineering Pharmaceutical application equipments. Sve also do general fabrication work of Alloy Steels, conventional Steel and special grade steel like Hardox&Weldox, OHNS and HDS. To perform the above activities, they have a natural ventilated total working area of 10000 square feet (about 8000 feet for manufacturing activities and about 2000square feet for Office & Administration) with latest machineries, technologies and good communication skills. They have a well trained manpower of one hundred employees, supported by experienced, supported by experienced engineers. The manpower is given regular in-house training under Different Fields such as job related work, industrial safety awareness, fire fighting, first aid. Eco-environment, self development ect. SVE employees follow the safety rules while manufacturing as per AWS standard safety rule and health hazards from welding fumes & dust. In addition to the statutory requirements, SVE have extended the welfare benefits like Life Insurance, Medical Benefits and Transportation facilities to their employees. They have very good industrial relation with employees. The company main capability is to provide end to end solutions in steel fabrication as well as carbon steel and it is also expertise in sheet metal as well as heavy plate wilding, in house facilities for bending, machining and jig boring and the company is will established vendor base for raw material and support functions. The company has a certification under the following category Certified for U&UM Stamping by ASME Certificate No.36. 474. The company is Certified ISO 9001-2000 quality management system by Lloyds Register Quality Assurance Certification No. MUM0061119 Dated: 15/7/2005. SSI Registration on 2/8/96 Peenya Industrial Association Life time Membership Certificate NSIC ISO 9001:2000 certified by Dun & Bradstreet Information service Pvt. Ltd, Certification No: 65-023-1447
Training of Welders in CCI-AG in SWITZERLAND. 2010 Expecting certification of EN-15085 from TUV Rhineland.
EXPORT DIVISION
SVE activities are not confined to the national scene only, but they realized the potential of Indian product in the international market SVE tools on export operation. Earth moving equipment, housing stainless steel, pressure vessels, ECT.are the few items of SVE handled. SVE overseas office places the role of a office to promote trade with European countries, today with India opening up to the world as never before and the world in turn seeking to tap the rich product that only India can produce, be it a traditional item or a consumer products or an industrial products. SVE started with exporting there product to the European countries in the year 2004 and they reached their sales force which helps in effectively channels of distribution. They have also achieved ISO to their company which states the quality assurance to their product and also now getting recognized as an established private company. It has also developed the HRD department for training for developing work force to adapt and get updated to the new technology introduced. They give 10% opportunity to the employees.
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SVES MOTTO
Customer is the king and our motto is quality assurance and customer satisfaction.
SVES CAPABILITIES
Can provide End to End solutions in Steel fabrication, Stainless steel as well as Carbon Steel Expertise in sheet metal as well as heavy plate welding. In-house facilities for bending, machining and jig boring. Well established vendor base for raw material and support functions.
VISION: To establish SVE Pvt Ltd as a world class steel fabrication unit by undertaking unique projects requiring a high level of technical expertise.
MISSION: To achieve the goal by reaching higher level of quality delivering economically in long term relationship
QUALITY POLICY: Fabricates of stainless steel products Satisfied internal customer, external customers through excellence in quality of products and processes and quality management system Satisfied, Motivated and Committed employees.
in
products,
processes
and
quality
CERTIFICATIONS
ASME U-STAMP
ISO 9001-2000
AWS CERTIFICATION
EN-15085(UNDER PROCESS)
De super heaters
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Pressure vessels
Tanks
Pantographs
Wagon couplers
Heater Pipes
ESTEEMED CUSTOMERS
SL.NO CUSTOMERS PRODUCTS
01 02 03 04 05 06 07 08
ABB LIMITED Millipore India Pvt Ltd. Fainveley Transport India Ltd. Flowserve Control India Ltd. ITT Goulds Pumps
Header Pipes, Traction Housing Pressure Vessels, Tanks etc. Reservoirs & Railway Products. Columns, Vertical pumps assy. Columns, UV Reactor and Vertical pumps assy.
Bombardier Transportation S.S. Air Reservoirs, Railway Products. Areva T&D India Ltd CCI Cabinet for Electrical Transformer. Diffuser Assembly & De super heater for Power Plant.
09
Westfalia Separators India Mechanical Separators. Ltd. Schunk Metal & Carbon Pantograph
10
India Ltd
STATUTORY Canteen facilities First aid boxes Rest room for employees Protective clothing uniform Safety shoes Goggles for engineering department Good Ventilation facilities Laboratory for research purpose to maintain good quality
Transportation facilities
In the year 2008, 9th May, Millipore India Pvt Ltd recognized the support rendered by SVE and issued the CERTIFICATE OF APPRECIATION in the development and consistent supply of K-Prime Frames and Quick scale components.
Chapter 3.10
ORGANISATIONAL STRUCTURE OF SVE The word organization is derived from the word organ which means various limbs or parts of the body and a musical instrument. It is the arrangement by which tasks are assigned to men and women so that their individual efforts contribute effectively to more or clearly defined purpose. Organization can perform effectively if it has sound organization structure where the designation given to each every person
The organization structure that has been adapted by SVE is very simple and commonly used one. It is the Line Organizational structure format, by adapting this structure authority, responsibility is easily understood by the entire worker in the organization which it make very one realize to whom he/she answerable to the chart of the flow of the power of SVE is as shown is as shown below:
An organization chart displays the organizational structure and shows job titles, lines of authority and relationships between departments. The polices and
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procedures which govern the way in which the organization acts within itself and within its environment.
Purchase Department
Stores Department
Production Department
Finance Department
PURCHASING DEPARTMENT
Purchasing of Raw Material is made when the inventory level reaches the minimum which is 5%. Purchasing will be made on Big Quantity. The Purchasing Department is directly headed by Technical Director Mr.Basheer Ahmed and Mr.Waseem Baig is Purchase department head. As and when there is complaint in Raw-Material complaint will be loaged to stores department and verification will be made by concerned authorities.
STORES DEPARTMENT
Preservation of Raw-Material and Customers property which includes products which are ready for dispatch will be ready for delivery until the final settlement is made by customers(In order to avoid the physical damage to the product stores department will look after the product which are ready for dispatch). Stores Department is directly headed by Mr. Basheer Ahmed the Technical Director of SVE and Mr.Venkatesh.
PRODUCTION DEPARTMENT
Production Department is mainly headed by Mr.Md Basheer Ahmed where the production department is mainly classified into two category they are:*ProductionPlanning *Production Operation *ProductionPlanning:Production Planning Department is in charge of Technical Director of
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SVE Mr.Md Basheer Ahmed. In this department the Production process, Product design, Product Quality will be determined by the Technical Director depending upon the Customer requirement. Here Production planning includes DESIGN of product through various softwares like AUTOCAD. Design Department is headed by MD.Basheer Ahmed and Department in charge is Ashoka an AUTOCAD DESIGNER.
*Production Operation:Production operation will start its production depending upon the criteria given by Production Planning Department which depends upon the customer requirement. Production operation department as been divided into 4Units where all the units are situated in Peenya Industrial Area. It is the main process in SVE which gives the ultimate outlook of a products manufactured in Unit. There are different stages of manufacturing process performed in SVE, the raw material is cutted, then it is send to the filling stage, it is welded and after the welding process is finished the inspection is done to check the product outlook then painting, polishing and testing is done, then the product reaches its final stage where it is ready for the dispatch to be reached to the final customers.
Unit1 Production Department Super-Visor cum In-Charge is Mr.ShivKumar and his Team Leads are:
Manjunath
Prasanna Khan
Unit 2 Production Department Super-Visor cum In-Charge is Mr.Yegova and his Team Leads are: Rajanna Narayanappa Balaji Kadivel
Unit 3 Production Department Super-Visor cum In-Charge is Mr.Maheshappa and his Team Leads are: Umesha Munsif VenuGopal Hanumanthappa Ramesh
Unit 4 Production Department Super-Visor cum In-Charge is Francis and his Team Leads are: Jamsheed Santosh Chetan Ramesh.M.L Mahendra Kumar
Q&A Department is headed by VIJAY KUMAR Manager of Q&A Department and Ashok and Shivakumar are Q&C Engineers of Q&A Department
To maintain specified standards of quality To assets conformity them To take corrective actions To prepare and improve standard. The most profitable quality level is achieved by a balance between cost of quality to manufacture and value of quality to customers
INSPECTION Inspection plays a very important role in the SVE. It is which check out the defects and damages of the products before reaching the customers. In SVE inspection is done TWO times, one is at the initial inspection and the other is the final inspection. It is mandatory and which meet the requirement of customer
FINANCE DEPARTMENT
The finance function deals with the procurement of money at the time when it is needed and its effective utilization in the enterprise. Money is the lifeblood of any enterprise, as it is required to purchase machines and materials to pay wages and salaries to employees and to allow credit facilities to customers. An important requirement for the success of any business organization is the provision of sufficient amount of funds or capital. It cannot work unless it has got sufficient amount at its disposal to purchase machine and materials, build premises, and meet day-to day expenses and for several other finance for the functioning of the enterprise. For companies, which carry on production and distribution on a largescale provision of adequate finance, is a very challenging task. It affects all the business decisions where money is involved, since the large commercial and industrial undertakings are set up in the form of companies, the problems of finance for modern business is for all practical purposes of the problem of corporate finance. All the important financial decisions are taken by the board of directors of company.
Objective of finance department: Since financing is one of the functional areas of any business enterprise, the objective of financial management must be done with the overall objectives of the enterprise. The objectives of the finance department should be so devised that they contribute directly towards the achievement of the overall organizational Ensuring regular and efficient supply of capital to the business. Ensuring a fair rate of return on capital to the supplier. Ensuring better utilization of capital by following the principles of Liquidity, profitability and safety. Coordinating the activities of the finance department with those of the other department of the enterprise. Manager Accounts: Finance and A/c managers concerned with measurement of income/expenditure for specific periods of time such as month and year (income/expenditure statement) financial reports at the end of the period. Manager Costing: It is concerned with determining relevant cost and performing other analysis like preparation of budgets and performance analysis based on budgets. Manager Finance:
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He is responsible for overall financial planning and for raising capital he has the following functions to perform major activities are financial, forecasting, fund management, auditing and capital budgeting. Softwares used to maintain accounts or records; Tally: To mention accounting records. Matt Rick System: To make attendance of employee by pressing his thumb on machine. Normal windows software like M.S.-Word, M.S.-Power Point etc for required official uses. Mr.C.S.SriDhara the Finance Director of SVE is handling the finance department and under his supervision he as two young and dynamic person they are Ms.Geetha and Ms.Priya for Accounts department, Ms.Prathibha for billing and Ms.SumaLatha and Ms.Sunitha for Documentation.
Practice/ Procedures: Companies contribute to PF and super annual fund as per the rules of P.F. Act not excluding 12% of the basic salary. Gratuity will be limited to half a months salary for each completed year of service. Perquisites shall be evaluated as per IT rule wherever applicable and in absence of any such rule perquisites shall be evaluated at actual cost. The company has given interest free loan and advance in the nature of loans of employees recovery are made according to the stipulated time. The Stock of Finished goods, Raw materials, Stores & Spares are physically
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MAN POWER: Man power is major aspect of any business or organizational activity without man no production, and no business. So at all work, all activities of business are based on man power of the organization. Success of every organization is depending on man power of that organization. Man power or human resource of HIPL is very good. They have 198 workers. 193 are Male-employees and remaining 5 are Female-employees. They divide workers according to their skill, knowledge, qualification and work. There are totally 3 types of workers. Technical. Non-Technical Labor Group. Technical: The Technical workers are the base of production. They must qualified as any technical course like B.E., B.Sc, Diploma and I.T.I. etc. The workers or employees of technical are:
Non-Technical : Non-Technical employees are those whoever comes or works all related jobs of marketing, store, dispatch accounts, security, management etc., The majority of workers in HIPL is Non-Technical workers are doing their work in production but Non-Technical workers are handling all related work of organization. Non-Technical workers are: Management Security
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Accounts Stores Marketing etc Requirement of employees is depending on their work. Labor Group: These are the employees of HIPL who works under or who works as assistant of employees. They are just for normal or minor works as cleaning, helping etc. EMPLOYEES STRENTH There are 190 employees in the factory, who work in the administration section. The working hours for an employee are 8 hours. The SVE holds 4 shifts per day. Sl.No 1. 2. 3. 4. Shift A B C D In Time 06:00 AM 02:00 PM 10:00 PM 08:30 AM Out Time 02:00 PM 10:00 PM 06:00 AM 05:30 PM Total Hours 8 8 8 8
Wages are given on time basis. The wages are given before 10 th of the month. The wages are paid directly to the employees through cheque and through direct cash to the employees.
Objectives: a) To design and develop quality products that area reliable and economical. b) To consistently try and improve the quality of the product.
Design and development planning: For the process of design and development, planning the following points are determined Design and development stages. Review verification and validation that are appropriate to each design and development stage. Responsibility and authority for design and development.
Chapter-5
SWOT ANALYSIS:
A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified in as strengths (S) or (W), and those external to the firm can be classified in as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as SWOT analysis. The SWOT analysis provides information that is helpful in matching the firms resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection
S = Strengths S = Strengths
T = Threats T = Threats
SWOT SWOT
W=Weaknesses W=Weaknesses
O = Opportunities O = Opportunities
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Strengths:
SVE is supported by experienced and qualified Directors. The Directors are from engineering background and their services are available to the company.
Productivity enhancement through both quality and quantity of the product. Good coordination between employee and employer.
SVE provides healthy working conditions and safety equipments to the workers and fulfils their needs and wants.
SVE has adopted modern technology for its operations. In house availability of technically skilled manpower and superior technology helps SVE to supply best quality product.
Established customers in automotive, machine tool and general engineering sectors varied customer segments Continuous updating ensures a spirit of constant learning among the employees. Professionally managed company. Effective distribution of work in the organization.
Weakness:
Dependence on only one major customer , the Railways Production Process located in multiple locations. This results in transport of semi finished goods to other units back and forth for further process results in high production cost.
Wastage of raw materials due to non Handling of raw material in a scientific manner.
Opportunities:
Introduction of Mass rapid transport system in India & other countries Raising cost of fossil fuels Huge investment in Infrastructure development in India Huge flow of Foreign Direct Investment into India
Threats:
Growth of Cheaper modes of air transport Dumping of similar products from China Counterfeit products
SVE is rich in technology as they are using CNC machines. SVE has provided a family atmosphere in the organization.
Training is the major tool for maximizing the productivity. There is no labour union. There is no proper canteen facility in the organization. Highly qualified top management. Good communication with workers. Provides opportunity for the employees to enhance their learning by conducting various events and other orientation programs. Effective distribution of work in the organization.
Conclusion:
The training gave valuable information and helped to know the practical part of the theories and problems studied in the past years. SVE is headed by experienced and qualified Directors and their experience in the engineering field will take the company to greater heights. The company is working more efficiently. A study on the history of the company reveals that the past years of the company were really magnificent and excellent. The company is utilizing the resources at its maximum for healthy production. During the training period, the practical steps of production, distribution, the purchasing procedure etc was discussed and the risk involved in doing the business was understood. Mainly the study of individual departments was very enlightening and the knowledge gained has helped in understanding industrial practices.
Enlarge the warehouse capacity to stock the raw materials / finished products. Conducting sports and cultural events to harmonies the relation among the employees.
Increase the productivity by providing rewards and appreciation. The company has to make effective utilization of available resources.
The production department should provide more and more safety measures for the employees. The company should improve machine utilization and take corrective action to minimize production loss due to idle time. Facilitating the customers to buy and interact through e-marketing can enhance the sale unimaginably it also helps to attract potential customers in and out of India.
Participation in interstate and international trade fairs frequently would help in promoting the product and bringing the brand identity internationally.
The company should control the expenditure and cut down unnecessary cost. It should take more care towards customer retention.
Learning Experience
Learning is synonymous to experience. This is because every human being learns hence only out of experience and experience is the way of life. In life a person enhances his knowledge only when exposed to real world situations, and by being exposed to the real conditions in a systematic manner. He understands how to live and face various unforeseen situations. This is exactly what the MBA course does to its students. The MBA course has the organization study as the part of its curriculum to make the students experience the actual corporate world and learn its ways of functioning. In this competitive world this kind of an approach is extremely indispensable. Students coming out, as MBAs would be ready to have an interface with the corporate world with determination, confidence and competence. Todays corporate world demands for all these qualities, without which facing the corporate world is a difficult task. In this organization study I have learnt a lot. Interacting with an Organization that has existed since long was an experience of a life time. The employees of SVE had been of tremendous support to me in doing my project work. They guided me in
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every step and gave all the necessary information for doing the organization study. This has made me learn that people in organization are accommodative in HR. Without their support it would have been highly difficult. This organization study helped me a lot in learning towards the corporate exposure as it is a practical way of learning about organization to develop and understand the organization system , culture , the nature of production , strategies regarding their competitors its future growth and prospectus etc. During the 5 weeks it was my pleasure to work with Sidhi Vinayaka Fab Engg Pvt Ltd. It was my first exposure in a manufacturing industry. It gave me immense knowledge about how a manufacturing industry works.