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Organisational Study Report of Cochin Shipyard Limited

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This is the Organizational study conducted by me on Cochin Shipyard Limited, Cochin. Its consist all Department Details , Structure, Financial Statements (P&L and Balance Sheet) Turnover, Employee …

This is the Organizational study conducted by me on Cochin Shipyard Limited, Cochin. Its consist all Department Details , Structure, Financial Statements (P&L and Balance Sheet) Turnover, Employee Details, Industry Profile, Company Info, History etc.

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  • 1. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu ORGANIZATIONAL STUDY AT COCHIN SHIPYARD LIMITED. An Organization study Report submitted to Mahatma Gandhi University for the partial fulfillment of the Award of Master of Business Administration Submitted By KISHORE RAVEENDRAN (Reg No 40117) Caarmel Engineering College, Perunadu Under the Supervision of ARAVIND.M Asst. Professor MBA DEPARTMENT OF MANAGEMENT STUDIES 2013 June
  • 2. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu
  • 3. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu
  • 4. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu ACKNOWLEDGEMENT On completing this Organizational Study it is my pleasure to thank to acknowledge and extend my heartfelt gratitude to the following people who made the completion of this Organizational Study possible: My Faculties, Assist.Prof. Pradeep.S and Aravind.M for his vital encouragement and support. Mr.Ramesh K.J (DGM- HR), and Mr. A.K Subhash, Assist.General Manager, Cochin Shipyard Limited, for the invaluable contribution and support, all the employees of CSL who are helped me in this Organizational Study. My friends and family and specially my father‟s friend and his family who are gave me the physical and moral support in completing this Organizational Study in time. Just because of all his grace , the Almighty for showering His blessings in abundance upon me during the course of this Organizational study.
  • 5. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu
  • 6. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu DECLARATION I hereby declare the report entitled “Organizational Study of ALUMINUM INDUSTRIES LTD (ALIND), SWITCHGEAR DIVISION, MANNAR”, submitted by me for the award of the degree of Master of Business Administration of M.G. University is my own work under the guidance of Mr. Aravind.M Department of Management Studies, Caarmel College of Engineering, Perunadu. I also hereby declare that this report has not been submitted for the award of any other degree of M.G. University. KISHORE RAVEENDRAN
  • 7. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu TABLE OF CONTENTS Sl.No Chapters Topic 1 Chapter 1 Chapter 2 Chapter 3 SCOPE AND METHODOLOGY OF STUDY 2 OBJECTIVES OF THE STUDY 3 LIMITATIONS OF THE STUDY 4 INTRODUCTION 5 INDUSTRY PROFILE 6 INDIAN SHIP BUILDING INDUSTRY 7 INDIAN SHIP BUILDING INDUSTRY 8 COMPANY PROFILE 9 STAGE VISE DEVELOPMENT 10 GRAWTH TO INTERNATIONAL SHIPYARD 11 SHIP BUILDING 12 SHIP BUILDING INCOME (Graph) 13 SHIP REPAIR 14 SHIP REPAIR INCOME (Graph) 15 Chapter 4 FINANCE DEPARTMENT 16 Profit and Loss Account 17 BALANCESHEET 18 FINANCIAL HIGHLIGHTS 19 MAJOR FACILITIES AND ASSETS 20 BUSINESS DEVELOPMENT DEPARTMENT (MARKETING) 21 PERSONNEL AND INDUTRIAL RELATIONS DEPARTMENT (HUMAN RESOURCE) 22 RECRUITMENT POLICY IN CSL 23 PERFORMANCE APPRAISAL OF WORKMEN 24 MARINE ENGINEERING TRAINING INSTITUTE (METI)
  • 8. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu 25 SHIP DESIGN DEPARTMENT 26 SAFETY AND FIRE SERVICE DEPARTMENT 27 INSPECTION & QUALITT CONTROL DEPARTMENT 29 SINGLE BID TENDER 30 TWO BID TENDER 31 SHIP REPAIR DEPARTMENT 32 VIGILANCE DEPARTMENT 33 MEDICAL CENTRE 34 STORE DEPARTMENT 35 Stores Department Table 36 UTILITY AND MAINTENANCE DEPARTMENT 8 37 PROJECT DEPARTMENT 38 OFFICIAL LANGUALE IMPLEMENTATION CELL 39 . INSPECTION & QUALITT CONTROL DEPARTMENT 40 AIR DEFENCE SHIP AND MATERIAL PLANNING DEPARTMENT 41 Chapter 5 Chapter 6 SWOT ANALYSIS 42 CONCLUSION 43 FINDINGS 44 SUGGESTIONS 45 BIBLOGRAPHY
  • 9. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu LIST OF FIGURES SL.NO CONTENTS No Of Figure 1. Ship Repair Income 3.1 2. Ship Building Income 3.2 3. Bill structure 4.1 4. Profit and Loss Account for the year ended 31st March 2012 4.2 5. Balance Sheet as on 31st March 2012 4.3 6. Financial Highlights 4.4 7. Major Facilities of assets 1 4.5 8. Major Facilities of assets 2 4.6 9. Performance Appraisal for workmen 4.7 10. Performance Appraisal foe Executives 4.8 11. Department Structure of Personnel and Industrial Relations Department (HR) 4.9 12. Marine Engineering Training Institute (METI) Structure 4.10 13. Department Structure of Ship Design Department 4.11 14. Department Structure of Safety and Fire service Department 4.12 15. Department Structure of Information Systems Department 4.13 16. Department Structure of Materials Department 4.14 17. Single Bid Tender 4.15 18. Two Bid Tender 4.16 19. Department Structure of Ship Repair Department 4.17 20. Stores Department Table 4.18 21. Department Structure of Utility and Maintenance Department 4.19
  • 10. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu CHAPTER 1
  • 11. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu SCOPE AND METHODOLOGY OF STUDY The Study in Cochin shipyard Limited was done from 1st June to 15th June, 2013. Both primary and secondary data were used for the completion of Organizational Study. Primary Data was mainly collected through direct conversations between AGMs and DGMs in the departments, and also staffs and trainees very much helped to build up this study. Secondary Data were collected from the company website (www.cochinshipyard.com), relevant books and documents such as Certified Standing Order, Settlement Of Amendment (1973-2010), Performance Appraisal Form, Annual Report 2011-2012, previous Reports etc. Also I did a small job, i.e. Sorting of Applications of Rejected Candidates. It is very much helped me to understand the Recruitment Policies and Methodology. Mainly the candidates are rejected because of the shortage of Experience, No relevant Certificates, No proof for himself. And any candidates who have the experience and proper Proofs will be accepted. During this time there is another 3 persons from other colleges to do the same Organizational Study with me. They helped me and I also helped them. OBJECTIVES OF THE STUDY  To familiarize the students with a business organization  To familiarize them with the different departments in the organization and their functioning.  To enable the students to understand how the key business process are carried out in organizations.  Understand how information is used in organization for decision making at various levels and  To provide a link between theory with practice.
  • 12. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu LIMITATIONS OF THE STUDY ► Allotted time given by college is too short. June1-15. I got only 12 days. (Because 2 Sundays and 1Second Saturday). June is the busiest time in CSL because of half Yearly Financial Statements making and Parliamentary Board Meeting. ► Material Department has the Negative approach to Managerial Trainees. So I used only secondary data to make the report of that Department. ► I tried 7 days to get an appointment between Finance Department, and I got it in the 7th day. I lost half an hour in each my valuable 6 days. ► DGMs/AGMs didn‟t give me the time that I expected to ask questions. ► Laptop is not allowed in CSL by Security reasons, if is not banned, I will be more comfortable and I just want few time for preparing this report. ► No specific Guiding from anyone.
  • 13. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu CHAPTER 2
  • 14. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu INTRODUCTION Cochin Shipyard was incorporated in the year 1972 as a fully owned Government of India company. In the last three decades the company has emerged as a forerunner in the Indian Shipbuilding & Ship repair industry. This yard can build and repair the largest vessels in India. It can build ships up to 1,10,000 DWT and repair ships up to 1,25,000 DWT. The yard has delivered two of India‟s largest double hull Aframax tankers each of 95,000 DWT. CSL has secured shipbuilding orders from internationally renowned companies from Europe & Middle East and is nominated to build the country‟s first indigenous Air Defense Ship. Shipyard commenced ship repair operations in the year 1982 and has undertaken repairs of all types of ships including up gradation of ships of oil exploration industry as well as periodical layup repairs and life extension of ships of Navy, UTL, Coast Guard, Fisheries and Port Trust besides merchant ships of SCI & ONGC. The yard has, over the years, developed adequate capabilities to handle complex and sophisticated repair jobs. The Shipyard also trains graduate engineers to marine engineers who later join ships both Indian and foreign as 5th Engineers. 100 are trained every year. COCHIN Shipyard Ltd. launched the third Fast Patrol Vessel (FPV) being built for the Indian Coast Guard (ICG). The vessel is the third in a series of 20 numbers FPVs contracted by CSL for the ICG. The contract was signed in 2010 with delivery of the last vessel slated for 2017. The vessels are being built under the dual classification requirements of ABS and IRS. The 50 metre x 7.6 metre x 4.65 metre vessels have a designed speed of 33 knots. The primary role of the vessel include fisheries protection and monitoring, patrol within exclusive economic zone (EEZ) and coastal patrol, anti smuggling, search and rescue operations and for anti piracy operations. The vessels have a secondary role of providing communication link & escort convoys during hostilities and war time. These high speed Fast Patrol Vessels, though small in size are extremely complex and technologically challenging. The ships are propelled by water jets to attain a speed of 33 knots. The high speed boats are weight sensitive and extensive use of Aluminium in the super structure has been made. Cochin Shipyard has developed special techniques to ensure high quality welding and fabrication of Aluminum structures.
  • 15. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu CHAPTER 3
  • 16. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu INDUSTRY PROFILE Ship building and ship repair has accelerated the economic growth of several countries in the near past; ship building has played a significant role in Economic development of Japan, South Korea and China. South Korea continues to enjoy the lion‟s share of the world ship building and likely to keep this supremacy for at least another 10 years. Japan is number second. China is in the 3rd spot. The distinct feature of this industry is that it can provide immense opportunities, to a very wide cross section of population viz, unskilled, semi-skilled, Highly Skilled hi-tech as construction of ship entails wide variety of jobs from plumbing, Carpentry, Painting, Cleaning to CAD/CAM designing the precision engineering. If we are aiming at balanced and resilient economic growth, the best bet is ship repair industry. The shipbuilding and repair section which was experiencing an unprecedented boom till September 2008, encountered sudden and very scenario recession in the market from October 2008 onwards, Freight rates have come down to unbelievable leaves . Suddenly ship owners ran out of cash options with a meltdown in financial market and bankruptcy of esteemed institutions. Shipyard now has no new for almost 4 months and need to protect its cash outflow. However when the immediate cause of this sudden down turn viz- bankruptcy of some esteemed financial institution and consequences there on are set right, market is likely to pick up again owing to the inherent strength and prospectus of the sector. The dynamic increase in global trade, witnessed in recent times with opening up of many economies increased energy requirement leading to offshore support and IMO (International Maritime Organization) regulation for replacement of all single hull taker to double hull are some of the factors which would contribute long term favorable outlook. Other factors that prompt ship building and ship industry are, 1. It is a strategic sector of equal prominence as Agriculture; Ships are the only established means of transport in International trade for the last 100 years and will remain so far years to come. Lack of ship building and ship repair capability would undermine inherent economic strength of the nation just as agriculture is nourished at all cost, ship building and repair also be nourished for economic resilience and Trade of India. 2. India has abundance of primary requirements in this industry such as; 1) Low Cost Labour 2) Long Cost Lines 3) Adequate qualified engineers and technical hands at reasonable cost 4) Long Maritime Traders
  • 17. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu INDIAN SHIP BUILDING INDUSTRY The Indian ship building Industry was reserved for public sector under Intellectual Property Rights of 1956, and thus protected from both foreign and domestic competitions. India has 23 shipyards, of which 7 are under administrative control of the Central Government, 2 with State Governments, and the rest in the private sector. The assured support from Shipping Corporation of India and other private companies, the domestic ship building industry was shielded from competition and hence plays little attention towards productive issues. At present private sectors such as L&T Shipyard, Bhatathi Shipyards have emerged in shipbuilding activities Gornlarhe Ocean going ships. India is in an advantageous position with its lower man-hour recovery rate compared with most of the other maritime nations. The policy should aim at exploiting the lower wage cost. The labour cost advantage is visible but the cost of capital is very high in Indis compared with other maritime nations. The strategic option for domestic industry is to raise the productivity levels to outweigh the capital cost advantage of advanced maritime nations. Ship building industry should avail the benefits of emerging liberalization environment to deliver ships in time. With changing priorities of Government of traditional maritime nations the subsidies extended to ship building industry appears to be withering away. Coupled with high wage rates ship building industry will relocate in low wage countries in the medium and long term. The domestic industry must be in a position to top this medium to long term opportunity in the global market. Current and future market situation • The Indian shipbuilding industry has around 28 shipyards comprising of 8 public sector, 6 yards under central and 2 under state governments with around 20 private shipyards. • The Indian shipbuilding turnover for both the private and public shipyard sector reached 1.6 billion dollars in 2010. • Government owned Cochin Shipyard Limited and Hindustan Shipyard Limited are the major shipyards in India. • Private shipyards are more in numbers, but are severely limited by capacity and size of ship they can build. • The Indian ship building industry does not only produce Indian and International cargos, but also provides facilities such as ship repairing. • The Indian shipbuilding industry is estimated to double from its 2010 revenue of $1.6 billion in the next five years.
  • 18. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Main Segments in the Indian Shipbuilding Industry Shipbuilding industry is mainly divided into the following: New ship building yards • New building ship yards are mainly active in building commercial and defence vessels • Commercial vessels are mainly built for European owners and Defence vessels are for Indian Navy • Ship yards mainly build vessels for European owners • Major yards are ABG Shipyard, Bharti Shipyard, Modest, Pipavav Shipyard, L&T Shipyard, Cochin Shipyard, etc • Ship repairing • Indian ship repairing industry consists of around 7 ship repair units (SRU‟s), namely Alcock Ashdown & Co. Limited, Chennai Port Trust, Hindustan Shipyard Limited, Mumbai port Trust, Cochin Shipyards, Garden Reach Shipbuilders and Mazgaon Dock Limited who have been given the permanent approvals as SRU‟s.Ejvind Vøgg – Own Man in India Major shipyards in India •ABG Shipyard •Alcock Ashdown •L&T Shipyard •Pipavav Shipyard •Bharati Shipyard •Chowgule & Company •Goa Shipyard •Bharati Shipyard •Mazgaon Dock •Hindustan Shipyards •Cochin Shipyard •Tebma Shipyard •Garden Reach Shipyard •Hooghly Docks Note •ABG has 2 shipyards in Gujarat •Bharati Shipyard has 3 shipyards in Maharashtra
  • 19. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu COMPANY PROFILE Cochin Shipyard Limited (CSL) is a growing International Shipyard focused on delivery of quality ships on time. It has a good customer base and product profile. Health and environment practices are world class and workforce has a high morale and motivation level displaying a strong some of belongingness the company. Vision “Ours in an endeavor to emerge as an internationally competitive yard and facilitate to emergence of India as a dominant Ship Building and Ship Repair centre of the region. Cochin Shipyard promises you quality service, outstanding workmanship, timely delivery, reliable personnel and excellent coordination that do not leave you feeling at sea…” Management Team Cochin Shipyard Limited
  • 20. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Mission To Build and Repair vessels to International Standards and provide value added engineering services. History Cochin shipyard was conceived of in the year 1969 when a team surveyed various locations in India before selecting Cochin for the launch of the first Greenfield Shipbuilding Yard in the country. The yard facilities in the first phase were completed by 1982. The yard was designed and constructed under technical collaboration with M/s Mitsubishi Heavy Industries (MHI), Japan. The company was legally incorporated in the year 1972. The yard commenced the ship building operations in 1978, Ship Repair in 1981, Marine Engineering Training in 1993 and Offshore Up gradation in 1999. Cochin Shipyard‟s recent success in securing export orders have been achieved through consistent improvement in productivity and also aggressive marketing undertaken in the last few years. The yard could reduce the average time of construction of large ships in the last decade through augmentation of facilities, up gradation of ship design department with installation of Tribon and CAD/CAM software and adoption of Integration Hull Outfitting and Painting system (IHOP) of construction. The Shipyard commenced Ship Repair operations in the year 1982 and has undertaken repairs of all types of vessels including up gradation of ships of oil exploration industry as well as periodical lay up repairs and life extension of Ships of Navy, UTL, Coast Guard, Fisheries and Port Trust besides merchant fleet. The yard has, over the years, developed adequate capabilities to handle complex and sophisticated repair jobs. NUTSHELL 1. Cochin Shipyard was conceived of in the year 1969 when a team surveyed various locations in India before selecting Cochin for the launch of the first Greenfield Shipbuilding Yard in the country. 2. The yard facilities in the first phase were completed by 1982. The yard was designed and constructed under technical collaboration with M/s Mitsubishi Heavy Industries (M.H.I), Japan. The company was legally incorporated in the year 1972. 3. The yard commenced the shipbuilding operations in 1978, ship repair in 1981, Marine Engineering Training in 1993 and Offshore Up gradation in 1999. 4. Cochin Shipyard‟s recent success in securing export orders have been achieved through consistent improvement in productivity and also aggressive marketing undertaken in the last few years .
  • 21. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu 5. The yard could reduce the average time of construction of large ships in the last decade through augmentation of facilities, up gradation of ship design department with installation of Tribon and CAD/CAM software and adoption of Integrated Hull Outfitting and Painting system (IHOP) system of construction. 6. The shipyard commenced ship repair operations in the year 1982 and has undertaken repairs of all types of vessels including up gradation of ships of oil exploration industry as well as periodical lay up repairs and life extension of ships of Navy, UTL, Coast Guard, Fisheries and Port Trust besides merchant fleet. The yard has, over the years, developed adequate capabilities to handle complex and sophisticated repair jobs. Strategic Tie-Ups 7. CSL has established tie-ups with select specialist firms from near-east, far-east, South-east, Europe and USA for technology transfer & material packages for shipbuilding, shiprepair, platforms, rigs & upgradation of yard facilities Board of Directors Cmde K Subramanyam : Chairman & Managing Director Ravikumar Roddam : Director (Finance) P. Vinayakumar : Director (Technical) Capt. R. S Sunder : Director (Operations) M.C Jauhari, IAS : Official Part Time Director, Joint Secretary (Shipping), Ministry of Shipping L. N Vijayaraghavan, IAS (Retd) : Non Official Part Time Director S. K. K Krishnan, Vice Admiral (Retd) : Non Official Part Time Director M. Raman, IAS (Retd) : Non Official Part Time Director Company Secretary Smt V. Kala Management Team Jose Mathew : Executive Director (Design) Baby Thomas : Executive Director (Materials) Joe Joe Peter : Chief General Manager (Planning & IQC) Sunny Thomas : General Manager (Technical) Paul Ranjan : General Manager (Finance- 1) N. V suresh Babu : General Manager (Ship Repair)
  • 22. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Madhu S Nair : General Manager (Marketing) Bejoy Bhaskar : General Manager (Defence Projects) K .J Ramesh : General Manager (Human Resource) T.N Sudhakar : General Manager (Finance- 2) Murugaiah .M : General Manager (Hull and HE) M.D Varughese : General Manager (Industrial Relations & Administration) K.I Koshy : General Manager (Materials) Bankers State Bank of Travancore State Bank of India Syndicate Bank Union Bank of India Auditors M/s Menon & Ayyar Charted Accounts, Ernakulam Registered Office Cochin Shipyard Limited XXXXIX/6080, Administrative Building, Perumanoor Kochi- 682015, Kerala, India
  • 23. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Stage Vise Development 1971-1981 During the 1st decade the yard contracted to build three bulk carriers, one for Shipping Corporation of India, one for Ratnakar Company and 3rd for Chowgule steamship. First two or three year‟s project implementation was at full stream and therefore the actual operation commenced only in the later years. Only one ship was delivered in this decade. The 1st bulk carrier “Rani Padmini”, delivered on 24th July 1981. The accumulated loss on the first decade was 13 Crores of Rupees. 1981-1991 During this decade shipyard commenced the ship repair activities, shipyards increased losses on ship building is mainly due to the pricing policies existing on that time. The cumulative losses increased to 166 Crores of rupees in 1991, during this decade shipyard delivered 5 ships includes four bulk carriers and one oil tanker. 1991-2001 Commencement of this decade ship yard had an accumulated loss of Rs 166 Crores, considering this Government of India approved for capital restructuring on March 1994, during this decade yard marketed its ship repairing facilities globally and developed ship repair as a major stream of revenue. As a result of these activities yard started generating revenue and getting profit from 1994-1995, and wiped out its entire accumulated loss in March 2003. During this decade shipyard was able to deliver one oil tanker, three tugs five patrol boats to various Indian owners. 2002-2008 The main achievement of Cochin Shipyard in the last six years was gaining a foray in to international market; yard delivered one barge for NPCC Abudabi, this period only yard was nominated to build the first Indigenous Aircraft Carrier for Indian Navy.
  • 24. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu GRAWTH TO INTERNATIONAL SHIPYARD The growth of CSL has been a phenomenon since 2002. The decision to compete globally acted as catalyst. The first small order was completed six days ahead of schedule sending a signal in market of CSL‟s capability and determination. A nine-ship order from sand Arabia followed: When first three of these nine performed very well and delivered on schedule CSL was a force to reckon with. A huge order of six bulk carriers from a major ship owner valued at over 700 Cr followed. These were delivered from months ahead at schedules heralding the yard‟s arrival in global market. Orders for 35 ships poured in. CSL which has originally building one ship every three years was delivering 5-7 ships a year. At present CSL has more than 20 PSV in its order book contracted to deliver beyond 2010. All these orders are for foreign owners from various nations like UK, US, Norway, Greece etc. SHIP BUILDING CSL has been achieved full capacity utilization in last two years. In last 3 years, the yard has delivered 6 bulk carriers, Nine fire fighting tugs and eight platform supply vessels (PSV) for various international owners. The company could achieve a total ship building income of Rs 1260 Crs during 11- 12 as against 1320 Crs in 10-11.
  • 25. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu SHIP BUILDING INCOME Fig 3.1 (Rs in Crores) SHIP REPAIR Commenced in 1982 and till date about 1800 vessels have been repaired. The company has undertaken repairs of all type of ships including up gradation of ships of oil exploration industry as well as periodical lay-up repairs and life extension of ships if Navy, Union Territory of Lakshadweep, Cost Guard, Fisheries and Port Trust besides merchant ships of Shipping Corporation of India (SCI), Oil and Natural Gas Corporation (ONGC) etc. The existing ship repair Dry Dock can accommodate 125000 DWT vessels. The yard ventured into offshore repair/up gradation business in 1999. CSL undertakes clapmon projects, fabrication and installation of new platforms and revamping of existing platforms. The yard has over the years developed adequate capabilities to handle complex and sophisticated repair jobs. During 20007-08 , CSL diversified into the offshore and dredging market and undertook repairs to the oil rigd Sagar Bhushan of ONGC, oil rig trident for M/s Transocean, USA and Dredgers Sagar-Hansa for Vanword ACZ shipping Management, Denmark and Aquarus for Dredging Corporation of India. In the current year, the yard has also undertaken a project for conversion of fishing vessel to seismic Research Vessel for M/s Nordic, Singapore. 0 200 400 600 800 1000 1200 1400 2007-08 2008-09 2009-10 2010-2011 2011-2012
  • 26. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Cochin Shipyard could achieve a ship repair turnover of Rs.252.14 Crores during 2007- 2008 as compared to Rs 241.53 Crores in 2006-07, i.e 5% increase. SHIP REPAIR INCOME (Rs in Crores) Fig 3.2 0 50 100 150 200 250 300 2007-08 2008-09 2009-10 2010-11 2011-12
  • 27. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu CHAPTER 4 DEPARTMENT STUDY
  • 28. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu FINANCE DEPARTMENT In the modern concept Finance is not only a Life blood of the business; it is the „LIFE‟ of the business. The finance department in CSL plays an important role enhancing the efficiency and overall improvement of the organization it is the department, which controls the procurement and allocation of funds the business operations. In CSL, the financial department is common to all department of the organization. It is working with the Director Finance as the head. FUNCTIONS  Management of funds including working capital and transacting business with Banks and other financial institutions, managing all transactions relating to foreign exchange etc.  Participation in negotiations with unions/associations for finalization of proposals for revision of wages, salaries, other perquisites etc.  Evaluation of Investment proposals, project appraisals etc, with specific reference to finance perspective and examination of all proposals for financial concurrence and giving suggestions to effect economy.  To submit all information as required by Government and to other statutory authorities.  Preparation of Annual budget/MOU with Government.  Payment to suppliers, contractors, employees and other agencies.  To report to CMD matters which have adverse impact on the working of the company.  To organize and conduct statutory audit, internal audit, Income Tax audit, Sales Tax audit etc.  To attend to C&AG audit queries and reviews and related matters.  Attending to Tender Committees/negotiations.  To maintain proper books of accounts of the company as prescribed by Law and to comply with statutory provisions with regard to Companies Act/ Accounting Standards.  To render advice to CMD/HOD on all matters having any financial implications.  Compliance of provisions, procedures and rules with reference to various taxations and other Acts.  Finalization of accounts and audit of the same and declaration of annual financial results.  Attending to all tax matters relating to the Company.  Attending to issues arising from operation of shipbuilding and other contracts.
  • 29. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu DIFFERENT SECTIONS † ADS Finance † Central Accounts † Financial Planning † Bills Section † Ship Repair Finance † Ship Building Sections † Establishment † Taxes & Invoice † Cash † Internal Audit ADS FINANCE  Scrutiny and payment of bills relating to procurement of materials of Capital & Revenue nature and payment to ADS.  Attending to Tender Committees/ PNC.  Payment of WOT Expenditure.  Preparation of Annual Budget of ADS.  Preparation and Submission of bills to Navy-Infrastructure/ Cost Plus.  Liaison with WOT/ Navy.  Vouchers processed. CENTRAL ACCOUNTS  Maintaining proper Books of accounts.  Preparation of Financial Statements in Compliance with Companies Act 1956 and Accounting Standards etc and to present periodical accounts to the Board.  Arranging Audit of accounts by Statutory Auditors and C& AG.  Costing and compilation of cost information on periodic basis.  Material Accounting  Fixed Asset Accounting  Preparation of periodical reports.  Maintenance of records relating to machine utilization, labour utilization etc.
  • 30. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu BILLS » Concurrence of all purchase proposals. » Work relating to tender committee. » Scrutiny and payment of bills relating to procurement of materials of Capital and Revenue nature. » To arrange foreign remittances with Income tax clearance. » Scrutiny and payment of Customs duty, freight charges etc. » Arranging payment of temporary advances/ imprest / Cash purchase. » METI (Marine Engineering Training Institute) receipts and payments of METI expenditure. » Valuation of GRV and reconciliation. » Maintenance of Vendor Ledgers under ERP. Fig 4.1
  • 31. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu FINANCIAL PLANNING  Liaison with Banks.  Arranging Short term Loans.  Preparation of MOU.  Preparation of Budget (Capital & Revenues) and Budgetary Control.  Preparation of Annual Plan.  Preparation of periodical reports.  Ensure that Cash and Bank balance position is adequate for the smooth operation of business.  Undertake Short-Term and Long-Term fund requirement planning and initiate action for any shortfall or surplus.  Treasury operations and management.  Foreign currency transactions and hedging. SHIP BUILDING FINANCE ► Scrutiny and payment of bills relating to Civil, U & M, SBOC, SSD and IQC. ► Concurrence of all proposals of Civil, & M, SBOC, SSD and IQC. ► Settlement of Temporary advance & settlement. SHIP REPAIR FINANCE  Material Accounting of Ship repair  Settlement of Temporary advance & settlement.  Scrutiny and processing of Ship Repair bills relating to Materials, sub contract and other expenditure  Attending to tender committees for finalizing subcontract of SR.  Scrutinizing purchase proposals/ works contracts.
  • 32. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu ESTABLISHMENTS  Employees Income Tax recovery, issue of IT certificates and remittance and preparation of annual returns.  Maintenance of Provident Fund Account of all employees and final settlement of PF, Gratuity and other retirement benefits.  Scrutinizing and payment of bills relating to establishment expenses like stationary, telephone, canteen, advertisement, entertainment etc.  All payment relating to employees.  Payments to Trainees/ Contract workers.  Payment of CISF establishment.  Scrutinizing and paying PF advance.  Maintenance of transactions connected with Family Pension Fund and DLI. TAX AND INVOICE  Preparation of Invoices other than SR.  Arranging Insurance.  Maintenance of Sundry Debtors and follow up of receivables.  Handling of matters relating to VAT, Central Excise and Service Tax.  Attending to IT, VAT, customs cases/ appeals.  Handling matters relating to Central Excise/ Customs.  Handling of matters relating to Service tax.  Arranging of Income Tax audit, Sales Tax audit and filling of returns/ appeals.  Ship Building contracts.  Attending to Tender Committee for scrap sales.  Ship Building subsidy. CASH ⇋ Receipt, payment and safe custody of cash, cheque, DDs, Bank Guarantee etc. ⇋ Preparation of Cheque – arrange DD/TT etc.
  • 33. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu INTERNAL AUDIT ☞ Preparation of internal Audit Programme. ☞ Liaison with Internal Auditors. ☞ Attending to Government audit queries. ☞ Collection of data from various departments and preparation of draft reply. ☞ Liaison with audit Committee. ☞ Surprise verification of Cash. ☞ Preparation of annual progress reports for Statutory Auditors/ Government Auditors.
  • 34. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Profit and Loss Account For the year ending 31st March 2012 (In Lakhs) Particulars Note No For The Year ended 31st March 2012 For The Year Ended 31st March 2011 1.Revenue From Operations 2.Other Income 3. Total Revenue 4. Expenses Cost of Materials Consumed Changes in Inventories of work in progress Sub Contract and other Direct Expenses Employee benefits expense Finance Costs Depreciation and Amortization Expenses Other Expenses Provision for anticipated losses and expenditure. Total expenses (Less) Expenses Allocated to Capital Works 5. Profit Before Tax (3-4) 6.Tax Expenses Current Tax Deferred Tax Prior Year Tax Adjustment 7.Profit Of The Year 18 19 20 21 22 23 24 25 26 27 10 140485.15 7669.33 148154.48 167192.58 1699.99 21607.03 16611.22 1312.09 1807.27 12011.30 616.07 122857.55 0.00 122857.55 25296.93 7713.61 1340.90 (990.27) 17232.69 146171.53 12745.88 158971.41 71590.08 (1362.79) 19373.99 16649.62 2898.09 1705.60 122665.80 995.96 124516.35 2.91 124494.44 34422.97 8711.20 2959.00 0.00 22752.77 Fig 4.2
  • 35. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu BALANCESHEET As on 31st March 2012 (In Lakhs) Particulars In.N o As 31st March 2012 As 31st March 2011 1.EQUITY AND LIABILITIES 1.Shareholders funds Share Capital Reserves and surplus 2.Non Current Liabilities Other Long Term Liabilities Short-Term Provisions TOTAL 2.ASSETS 1.Non Current Assets FIXED ASSETS Tangible Assets Intangibl e Assets Capital In Work- In- Progress Current Investme nts 2 3 4 7 8 9 10 11 15242.20 89841.05 492.22 18560.23 260238.39 19247.99 12.95 6361.79 19.18 19242.20 77537.57 980.75 28153.42 255659.18 19035.57 31.91 3717.00 19.18
  • 36. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Differed Tax Assets(N et) Long Term Loans and Advance s Other Non- Current Assets 2.Current Assets Inventories Trade Receivables Cash and Bank Balance Short Term Loans and Advances Other Current Assets TOTAL Significant Accounting Policies Other Notes on Accounts 12 13 14 15 16 17 1 29-40 971.57 613.79 5745.99 36253.66 77992.10 90889.60 14164.15 7965.62 260238.39_____________ 2312.47 611.43 8125.13 23475.88 110260.53 69025.09 7337.84 11657.15 255659.18___________ Fig 4.3
  • 37. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu FINANCIAL HIGHLIGHTS Fig 4.4 Particulars 2001- 2002 2002- 2003 2003- 2004 2004- 2005 2005- 2006 2006- 2007 2007- 2008 2008- 2009 2009- 2010 2010- 2011 2011- 2012 Turnover 210.25 235.16 228.44 276.48 375.53 719.74 833.79 1256.21 1248.50 1461.72 1404.85 Total Income 253.84 282.07 267.94 323.31 452.89 845.64 857.17 1383.26 1326.49 1589.17 1481.54 EBDIT 36.62 35.72 37.18 28.03 43.79 104.17 162.66 276.42 364.68 390.27 284.16 Depreciation and Write offs 5.40 6.80 6.47 7.24 10.62 7,89 9.69 9.80 15.24 17.06 18.07 Profit After Tax (PAT) 16.41 16.49 17.78 12.10 18.23 58.11 93.85 160.07 223.04 227.53 172.33 Equity Share Capital 111.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28 113.28 Reserves & surplus 15.68 25.86 34.19 36.83 55.06 93.67 199.64 336.70 490.54 775.38 898.41 Net Worth 245.43 255.66 264.03 266.62 284.85 323.45 429.43 566.49 680.32 967.8 1050.83 Gross Fixed Assets 198.86 205.00 195.86 204.65 206.92 217.18 206.92 233. 349.68 362.10 376.73 Net Fixed Assets 84.92 86.30 74.09 78.30 76.33 81.91 92.16 121.64 189.75 190.67 192.61 Number Of Employees 2232 2189 2175 2109 2075 2084 2059 1962 1907 1818 1900 Earnings Per Share (EPS) 147.47 145.57 156.96 106.81 160.97 513.00 828.51 14.13 19.69 20.09 15.21 Face Value Per Share 1000 1000 1000 1000 1000 1000 1000 10 10 10 10 EBDIT/ Gross Turnover (%) 17.4 15.2 16.3 10.1 11.7 14.5 19.5 22.0 29.2 26.07 20.21 Net Profit Margin (%) 7.80 7.01 7.78 4.38 4.88 8.07 11.26 12.74 17.86 15.57 12.27 Return on Net Worth (%) 6.74 6.45 6.73 4.54 6.40 17.97 21.85 28.26 32.78 23.51 16.40 Return on Capital Employed (%) 4.22 4.28 4.33 20.45 3.65 11.70 23.28 29.09 38.57 27.44 18.76 Capital Employed 389.25 392.75 410.98 493.63 499.64 496.60 401.33 550.31 578.32 829.27 918.68
  • 38. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu MAJOR FACILITIES AND ASSETS Facilities and Assets Details Land 170 Acres Cranes 71 Nos Quay 1 for Repair 290 m Quay 2 for Repair 208 m Quay 3 for fitting out 460 m Covered Shop Area 35000 Sq.m Steel Stockyard 13000 Sq.m CNC Plasma Cutting Machine 2 Nos Steel Fabrication Facility 2000 Tonnes per Month Marine Coating Shop Fig 4.5 Docks Size Capacity Range 1 270x45x12m 125000 DWT 2010 & 5t 2 255x43x9m 110000 DWT 150 7 50t Fig 4.6
  • 39. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu The company achieved a turnover of Rs.1405 Cr with a PAT of RS.172Cr. the company contributed RS.111 Cr to the National Exchequer by way of VAT, Income Tax, FBT, Excise Duty, Customs Duty and Service Tax. The yard is proposing to declare a dividend of Rs.5 Per share on the 11,32,80,000 fully paid equity shares of Rs,10 each and Rs.70 per share on the 3,91,420, 7% Preference Shares of Rs.1000 each for the year 2011-2012. The total outgo on the dividend and the dividend tax is approximately Rs.23 Crs. The company has also redeemed 4,00,000, 7% preference Shares amounting to Rs.40 Crs during the year 2011-2012. With this, the preference share capital of the company to be redeemed before 2015 would be Rs.39.14Crs. Financial Performance Cochin Shipyard Limited (CSL) continued to achieve good performance in the year 2011- 2912 albeit a marginal reduction in the turnover and profits. The turnover for the year was marginally lower at Rs.1404.85 Crores as compared to Rs.1461.72 Crores in the year 2010-2011. The net profit was Rs.172.33 Crores as compared to Rs 227.53 Crores for the previous year. The performance is creditable considering the economic recessionary conditions and the downturn in the shipping and ship building sector. The reductions in the profits and turnover during the year were owing to several factors, primarily due to the reduction in turnover from Indigenous Aircraft Carrier (IAC) and the lack of ship building subsidy. Cochin Shipyard is hopeful of concluding the Phase 2 contract with the Ministry of Defense (Navy) for IAC in the near future. The yard is also on the threshold of signing a contract for one multipurpose vessel for the Director General of Lighthouses and Lightships. Discussions with ONGC are in an advanced stage to secure an order for a multi streamer Seismic survey vessel. The lack of fresh ship building orders due to the continued oversupply in the shipping market is of concern. DIVIDEND The Directors are pleased to recommend a dividend of Rs.1.5 per share on the 11, 32, 80,000 fully paid Equity Shares of Rs.10 each and Rs.70 per 3, 91,420 Preference Shares of Rs.1000 each for the year 2011-2012. The total outgo for dividend and dividend tax would be approximately Rs.22.93 Crores.
  • 40. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu BUSINESS DEVELOPMENT DEPARTMENT (MARKETING) The BD Division of CSL is unique in itself. Unlike marketing departments in other companies the BD division of CSL, does not have the usual procedures of advertising. Never in its lifetime has it got a situation where it had to advertise for its product (Ship). The major function of the BD division begins when the company is designing a new design or after a particular customer approaches the company. Let us take each situation separately. Once the company is making a new Design, the BD division with the help of shipbrokers finds suitable customers for the ship. But these are not the trend that is being followed today. The company does not concentrate on designing ship. Rather it buys the designs from an outside designing company and search for customers. The next situation is when a customer approaches the company for building ship. This is the pattern that is followed nowadays in shipyard where a customer specifies all their needs or core specifications like the speed limits of the ship measured in knots, the facilities within the ship etc. In both the cases the customers are given priority in deciding what all should be included or excluded from the design while building. In the previous situation, even if the company is giving the design, the customer has the full freedom to finalize upon the design. It is the duty of the BD division of CSL to select the company from whom the required equipments are to be bought. The selection is usually made looking the key concept of: -Technical Specification -Least Cost. The usual pattern is to look technical proficiency to a certain extent, just enough to meet the basic requirement and then select the one which provide at lower cost. Being a public sector least cost company is given more importance. Another major function of the BD division is the forward planning. Forward planning as it means planning for future, it done at the top management level and involves formulation of strategies and policies. In case of BD division it involves the areas of market development, market penetration, product development and diversification. CSL has adopted all three strategies except diversification of its products and services to strengthen its presence in the global shipbuilding and ship repair business.
  • 41. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Functions 1. Basic Design calculations and Drawings for ships and small crafts. 2. Material cost estimation for ships and small crafts. 3. Computer applications, data bank. 4. Development of Computer programmes for ship design calculations, cost estimation etc. 5. Data collection for technical, details of vessels, material cost etc. 6. Maintain a record of Rules and regulations concerned with shipbuilding and keep track of its amendments. 7. Updating the design capabilities with the latest trends in design. Initially the contract between the customer and Cochin Shipyard is made by this department and the most basic function of the forward design section is to make a basic design of the ships which is later handed over to the design department, materials department and the ship building department Functions of Commercial section 1) Market survey ships, small crafts and other engineering works for utilizing the installed capacity. 2) Preparation of Quotations. 3) Preparation of Contract documents. 4) Negotiation with owner. 5) Liaison with owners and after sale service/ guarantee repair claims- verification- Negotiation-Settlement etc. 6) Reporting relevant matters to ministry and other Government agencies 7) Legal opinion, Arbitration proceedings. The Business Development division of CSL in itself unlike marketing departments in other companies the BD division of CSL does not have the usual procedures of advertising. Never in its lifetime has it got a situation where it had to advertise for its product (ship). The gins, major function of the BD division begins, when the company is designing a new design or after a particular customer approaches the company. Let us take each situation separately.
  • 42. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu PRODUCT MIX ► Bulk Carrier ► Oil Tanker ► Aframax Tanker ► Clamp-on Structures ► Platform Supply Vessel ► Passenger Ship ► Tugs ► Dredgers ► Patrol Boats and Luxuary Launcher ► Aircraft Carrier MAJOR SUPPLIERS LIST  Rolls Royce Marine  Karm  Hyndra Marine  TIS  Abas  Aker Brats Vaagwinch  Suezer CUSTOMERS LIST  Coast Guard  Cochin Port Trust  Customs  Shipping Corporation of India  Essar Shipping Company  French Navy  Indian Navy  ONGC  Fisheries Department  Clipper Group Bahamas  National Institute of Oceanography  National Petroleum Construction Company, Abudabi
  • 43. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu MARKETING CHANNELS AND PRODUCT PROMOTIONS The main marketing channel used by Shipyard is the ship brokers who have under them 200-300 employees spread all around the world collecting information from MNCs about the requirements of ships. These MNCs take them into confidence to recommend the name of a ship building yard which would best suit their requirements. CSL also advertise themselves in magazines like “Offshore Support Journal” but they consider it just a method of visibility and not marketing. MARKETING RESEARCH The Business Development division of CSL conducts its own market research to know about the recent trends in the Ship Industry. They mainly have membership and subscribe in sites having controlled access through payment and provide the updated information on ship building industry. CSL is also conducting third party research for this purpose. The company is issuing shipping weekly. A gain the company is taking internet support also for this .The third party online researchers of the company include Clarkson, Offshore support, Trade Winds etc. CONTRACT There are mainly two types of contracts that Business Development division of CSL makers one contract is design contract and another is ship building contract. One of the major functions of the BD division of the company is to prepare and design the ship building contract with the customers. The contract should be supported with the specification as to which company‟s equipments are to be used while building the ship. For example, a customer could demand through the specification that, the engine must be bought from the given companies like Rolls Royce Marine, TTS,Abas. Once the company fails to meet the specification it could be fined by the customer. The specification will include the demand on capacity of the ship and also the expected speed. If these too are not satisfied, the customer could charge fine on the company. The contract also includes the cost, payment terms and warranty and also delivery date. Another type of contract that the BD division has to make is the design contract. This contract is made between the company and the company, which gives the design for the ship. This contract includes the specification (mainly the technical specifications) cost, payment
  • 44. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu terms and the warranty period usually is 24 months from delivery date of the equipment or one year from the date of vessel delivery. The contract should include details regarding the following;  Cost Of the ship  Duration of Completion  Date of handing over  Payment terms  Warranty period. Once the ship is being delivered to the customer, who then become the owner of the ship, could claim warranty If any defects happen to it, But the claim should be made within the warranty period. If the defect is on the equipment in the ship, the maker company will deal it, and If the defect is on the installation, then it will be dealt by CSL. This is also the duty of the Business Development Division. PRICING STRATEGY The CSL is looking is diversify into high value added products such as; » Dynamically positioned vessels » Floating Cranes » LNG Carriers » Offshore Structure » Dredger.
  • 45. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu PERSONNEL AND INDUTRIAL RELATIONS DEPARTMENT (HUMAN RESOURCE) HR VISION Emanating from the goals and objectives enshrined in the corporate mission statement, the strategic Human Resource Vision of Shipyard is to strive and create a unique institution that integrates creativity, innovation, technology, business and good corporate governance practices for all round improvement in the quality of work life of the yard‟s workforce. HR MISSION To provide a vibrant platform for all those working in the yard to give their best and ensure all round growth both for the individual and organization. HR POLICIES HR Policies are oriented towards the right mix of HR, their empowerment and enrichment so as to meet organizational targets and results. HR OBJECTIVES  Effectively play the role of strategic team member.  Planning for pragmatic man power, induction, re-skilling, deployments and retention of HR.  Develop and position right mix of person at the right time.  Create, maintain and nurture a healthy employer and employee relations.  Evolve and implement best industrial practices with transparency in approach, competitive reward and incentive system for excellence in performance.  Provide effective and meaningful social support to the community, society around.
  • 46. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Current HR Status in CSL The total manpower of the company as on 31 March 2012 was 2017 employees. HR SYSTEMS  Manpower planning, recruitment and Induction  Carrier development Policies covering all categories  Performance appraisal systems  HR Training and Development  Employee participation  Employer-Employee relations  Reward and suggestion scheme  Attendance Recording and wage Administration  Statutory Obligation towards contract workmen  Welfare and social Commitments. PLAN OF ACTION  Business Objectives – short term/ Long Term.  Chalk out plans for HR requirements matching current and future business requirements.  Identify core and non core areas of work.  Arriving at right mix for outsourcing work both in core and non core areas.  Continual improvement for Skill and knowledge updation.  Conscious cost cutting measures. Integrated attendance and payroll system.  Extension of offline services.  IT enabled record maintenance and employee self service system.  Total solution for electronic attendance cum access control.  Finalization of productivity linked variable payment scheme.  Sundry and supplementary work.  HR as profit centre.
  • 47. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu RECRUITMENT POLICY IN CSL Executive Recruitment The recruitment to the executive post in CSL is done on all India basis. The selection process is done on the basis of the degree or educational qualification, followed by written test and finally interview. The weight age for the above said is given as below: Degree – 50% Written Test – 30% Interview – 20% The test and the interview would be conducted on the same day itself. The results will be published on the same day itself, after the approval of CMD of Cochin Shipyard Limited. The executive positions are filled by 50% recruitment from external sources and 50% by promotions. In the case of promotions to the past of an officer the eligibility to write the promotion test is as followers:- For Engineering Degree holders = 6 Years service as supervisor in CSL. For Diploma holders = 8 Years service as supervisor in CSL. For ITI holders = 10 Years service as supervisor in CSL. Workers Recruitment The Recruitment to the workers post will be done through the employment exchange. As and when there is a vacancy in the workers post the company informs the employment exchange. As per the court order, in this regard, the vacancy notification is given in employment exchange and also an open advertisement is provided in the newspapers. This is also done in an all India basis. The procedure for selection also includes practical tests.
  • 48. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu MANPOWER Manpower Strength of the company as on 31st March 2012 was 1900, consisting officers, supervisors and workers. The complement of CSL as on 31st March 2012 is shown in the table below. Catagory SC ST OBC PWD Ex Servicemen/ Dependents Women Others Officers 34 9 48 2 7 28 139 Supervisors 26 6 1 5 2 17 148 Workmen 142 25 169 40 17 76 881 Canteen 5 0 51 1 0 3 18 TOTAL 207 40 269 48 26 124 1186 PERFORMANCE APPRAISAL OF WORKMEN Name Code No: Department PHOTO Date of Joining Date of Birth Period from 1st April 31st March Date of present Grade Designation Nature of Duties Performed PART 1 PERFORMANCE FACTORS FOR ASSESSMENT Description Total Marks Marks Given Initiating Officer First Reviewing Officer Final Reviewing Officer 1.Job Knowledge and Skill (a) Intelligence and Ability to Comprehend 15 (b) Quality Of Work 10 2. Quality of Work (Rejection Rate, Accuracy, Promptness, 10
  • 49. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Neatness) 3.Work Attitude (a) Initiative and Commitment (Cost consciousness and desire to learn) 10 (b) Team work (Co- operation/ interpersonal Relationship) 10 (c) Morale- Level of Enthusiasm 10 4.Dtsciplne (a) Attendance (CL+SL+EL=35 Days) 10 (b) Physical Fitness 10 (c) Safety Consciousness 10 (d) Sincerity / Sense of Responsibility 5 Total 100 RATING AWARDED 5.Integrity A. Above Board, B. Open to Doubt A B A B A B Signature Name Designation Date Of Appraisal RATING Outstanding (O)- Above 90% , Superior (S)-80 to 89% Very Good (VG)-65 to 70% Good (G) – 51 to 64% Fare (F) – 40 to 50% Poor – Less than 40% PART 2 REMARKS (to be filled with specific achievements only for those marked Superior and above / drawbacks for those rated poor) Initiating Officer Signature : Designation :
  • 50. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Name : Date : First Reviewing Officer Signature : Name : Designation : Date : Final Reviewing Officer Signature : Name : Designation : Date : OVERALL ASSESSMENT- (To Be Filled by Personnel Department) (a) Average Marks (b) Grading Fig 4.7 PERFORMANCE APPRAISAL OF EXECUTIVES 1. Competencies (a) Subject knowledge awareness of Duties. (Responsibilities) 20 (b) Application of Knowledge in work 15 3. Attitude (a) Ability to Co-operate and get along with team mates. 10 (b) Positive Approach to work problem 10 (c) Morale-Level of Enthusiasm 10 4. Leadership (a) Achievement in Training and Inspiring Subordinates. (b) Capability to assume higher responsibility Fig 4.8
  • 51. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu DEPARTMENT STRUCTURE Fig 4.9 PFSO- Port Facility Security Officer Industrial Canteen – CSEC (Cochin Shipyard Employees Canteen) AAO- Assistant Administration Officer Office Trainees (Apprenticeship) P & IR AD GM HR Assistant Manager Supervisor (AAO) Senior Assiatant GM IR & Admin (Chief Welfare Officer) Hindi Cell PFSO Medical Welfare DGM IR Deputy Manager Assistant Manager AAO JCA Industrial Canteen
  • 52. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu MARINE ENGINEERING TRAINING INSTITUTE (METI) CSL also runs a state of the art METI and basic advanced fire fighting courses. Since inception more than 1000 trainees have passed out of Institution. The institute has been rated OUTSTANDING by Independent rating Agencies continuously for last 6 years. More than 1000 officers are converted from Mechanical Engineering/ Naval Architecture to Marine engineering with a 3600 approach to Marine engineering on different types of ships. The Apprenticeship programme is conducted as per statue (Apprenticeship Act), the NTAC (National Trade Apprenticeship Council) test is conducted for trainees. Fig 4.10 APPRENTICESHIP TRAINING CSL imparts apprenticeship training as per 1961 Act and a consequent revision in 1973 & 1976, as per the Act CSL selects students with National Trade Certificate issued by the Government of India for apprenticeship training. The different trades under which they are provided training are:-  Office Trainees  Electrician  Mechanist  Fitter  Painter Training Institute Hostel Blocks Facilitator Training Institute Facilitator FFTC Facilitator
  • 53. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu  Instrument Mechanic  Draftsman Mechanical  Pipe Fitter  Ship Wright Wood The trainees are trained in the above trades for a period of two years. At the end of the training period all the trainees will have to undergo an all India examination and certificates are issued for the pass outs. The trainees may be taken as advanced trainees by CSL. It is usually for the period of 1 to 3 years according to the nature of trade and requirement. For degree and diploma holders apprenticeship training is imparted according to Apprenticeship Act 1973. It is one year course and certificates are issued on successful completion of the training and trainees are sent to different Departments of CSL to have an exposure according to their qualification and branch in rotation basis minimum for 3 months.
  • 54. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu SHIP DESIGN DEPARTMENT Ship Design Department is the Department of designing the ship. It means it realizes the expectations of the owner about his ship. In CSL, Design Department and Business Development Department doing the ship design process. Designing process mainly classified into two. Primary Designing and Detailed Designing. Primary Design is done through BD Department and the Detailed Designing is done by SD Department. Every Ship is designed under the rules and regulations of The International Ship Building Committee. According to the laws, a ship cannot be change the ownership. So every ship has some specifications. The owner submits the quotation consist, about Security Systems, Basic Requirements, Additional Requirements, another extra specifications etc.SD Department shall raise indents for bought out items as also fabricated items procured from outside. In the case of work progresses, Ship Design Department mainly divided into 6. » HSD » MOD » HOD » AOD » EOD » Forward Design and Defense Marketing
  • 55. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu DEPARTMENT STRUCTURE Fig 4.11 GM DGM (EOD) AGM AM DM Manager AGM Manager (MOD) Commercial AM DM Manager Manager (HSD) AM DM Manager Forward Design AM DM AGM (D- IAC) HOD AM DM Manager Manager (M- ADS) AM DM Manager (AOD) AM DM Office Administrator (Triboon System Admin)
  • 56. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu SAFETY AND FIRE SERVICE DEPARTMENT Safety and Fire Service Department is doing safety services in CSL. They provide all the Safety requirements in the yard and in the ship. This department is functioning under the Indian Factories Act 1948. They are continuously monitoring to the Ship Building area. They provide the basic safety requirements such as Lights, Ventilators, Switch Boards, and Tools etc to the Ship Building and the yard area. Safety and fire Service Department have two sections/ wings. > Safety Section > Fire and Rescue Centre. SAFETY SECTION Safety Section deals with all the safety requirements in the yard. They ensure Safety Helmets, Shoes, Lightings, Ventilators, and Oxygen Cylinders, Face Masks, Body Armor, Safety Belts safety Cloves etc in the work area for the employees. And also they are giving proper instructions about the safety and its requirements to the workers. They conduct Importance of Safety programmes to the CSL employees for building up the awareness about safety and carefulness in the job. Programmes like Seminars, Notices, Pluck Cards, and Flex Boards etc. FIRE AND RESCUE CENTRE Fire and Rescue Centre is 24x7 working department in CSL. They provided the requirements of preventing the Fire. They provided water pipes, fire cylinders etc in the whole CSL area. And also they have 3 F&R Vehicles which are ready for anytime work. In this Department they have 23 (17 permanent and 5 Trainees) employees. And also they are monitoring the electricity equipments and welding materials and their environment for assuring safety against fire. Employees working in this section under shift method. Fire and Rescue Department prepares Reports Monthly/Quarterly/Annually about their working procedures. This will help for comparison of current and previous data. Main Functions  Protect CSL from any kind of Fire
  • 57. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu  Giving Awareness about fire safety  Creating a protective atmosphere in CSL  Make CSL 100% Free from fire DEPARTMENT STRUCURE Fig 4.12 DGM Cheif Security Officer (AGM) Manager 1 (Fire) Manager 2 Deputy Manager Fire and Rescue Centre Fire Officer Assistant Fire Officer 17 Members
  • 58. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu INSPECTION & QUALITT CONTROL DEPARTMENT The Inspection & Quality Control dept co-ordinates the activities of the various functional Groups in the Organization such as to have production at the most economic level without staking product quality and customer satisfaction. Quality Assurance Process:- Quality Assurance Process starts right when a quotation for components is accepted and the Information is intimated by planning to I& C. I & QC check the quality of the samples provided by the suppliers. I & QC finally issues the accept/reject order of quotation. Once the supplier sends the goods to the stores; Stores on receipt of goods issue Goods Receipt Inspection Report (GRIR) to I& QC. I & QC checks the quality of components send and issue the accept/ reject proposal. The inspection report is send to planning as well as concerned production floor. If I& QC rejects the component, a Non Confirmation Report, is sent back through the Material Department. Supplier does necessary servicing of the parts or the replacement of goods. But If the components has to accepted in spite of rejection offered by I & QC, because of urgency in production or the concerned part will not harm the assembly or the extra ordinary delay involved in fresh delivery, The planning Department issues deviation concession note and gets the approval of I & QC then use the component in Production. Inventory Control Technique The Inventory control techniques mainly used are: 1. ABC Analysis 2. Review Stock 3. Standardization 4. Codification (Symbolic approach & Engineering drawing nos.)
  • 59. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Registration of Vendors After initial vendor list is prepared the following procedures are followed to register their name in approved list. 1. Application for Registration (forms available in website) 2. Applicants shall satisfy through documentary evidence then financial stability, income tax clearance, capacity to perform and produce performance certificate from those whom they are already supplying. 3. Establish office with telephone for direct contact is essentials. 4. The firm‟s premises may be inspected by the officers to verify the quality standards of products manufacture and other details shown in the application. Performance report from Government department and PSU‟s will be considered for registration. 5. A reference may also be made about their performance to excising clients. SSI shall satisfy registration requirement. Vendor evaluation and rating cards Vendor Rating Card maintained by CSL for evaluating performance of vendor against each order. Default in fulfilling the terms and conditions of the order and general faults are recorded and the performance is renewed every year by Material Department. Removal and Black Listing of Vendors The Vendors are temporarily removed from the approved the list depending on gravity of default. The vendors may be: » Put on hold in case of furnishing insufficient or vague information and wasting time on clarification. » Blacklisted or delisted If they supply false and misleading information or If found unreliable in supply. » Banned If they are bankrupt, insolvent or partitioned. When negotiating an international sales contract, both parties need to pay as much attention to the terms of sale as to the sales price. To make it as clear as possible, an international set of
  • 60. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu trade terms (INCOTERMS) has been adopted by most countries that defines exactly the responsibilities and risks of both the buyer and seller including while the merchandise is in transit. The CSL complies with this.
  • 61. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu INFORMATION SYSTEMS DEPARTMENT (ISD) The most specialty of this department is ISD comes under by the Department of Finance. Mainly they are doing E-mail creations, Intranet networking and Website updation.ISD in CSL previously known as Enterprise Resource Planning Department (ERP), provides a basic for integration of organizational Information processing. All the computer systems in CSL are licensed or full versioned protected by Symantec, AVG Anti Virus software. All the computer systems are running by the Operating System of Windows 7. Information System in CSL satisfies the diverse needs of different departments through a variety of systems such as query systems, analysis systems, modeling systems band decision support systems. CSL used the IS system provided by RAMCO ERP applications. It is a general organizational ERP system satisfies the common objectives and provision for developing the system to various applications required with their technical support in tune with the economical and the technical feasibility if the yard. Now Cochin shipyard Limited fully changing to SAP, Information Systems Department doing all the major procedures of that. There are 14 permanent employees working in this Department. Executive Trainees will become Permanent after he fulfills the one year training period. Fig 4.13 CGM Finance AGM (IT) Manager (IT) Deputy Manager Deputy Manager Project Officers Executive Trainees Assistant Manager JCA DEPARTMENT STRUCTURE
  • 62. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Objectives Of Information System in CSL  Handling of a voluminous data.  Confirmation of the validity of data and transaction.  Complex processing of data and multidimensional analysis.  Quick search and retrieval.  Mass storage.  Communication of the Information System to the user on time.  Fulfilling the changing needs of the Information. MAJOR FUNCTIONAL SUB SYSTEMS  Finance and accounting There are mainly 6 system modules in CSL to carry over its activities they are: 1. Accounts Payable 2. Accounts Receivables 3. Fixed Asset 4. General Ledger 5. Finance Management 6. Management Accounting Functional Support:  To conduct financial analysis.  Cost analysis.  All financial transactions of the Company. Input Transaction and Documents Transactions are payment and receipts and they are documented through journal vouchers, bills, debit notes, receipt note and transfer documents and these are documented through the typical format appropriate to the system. The objective of production management system is to provide manufacturing services to the organization. This involves the manufacture of ships of certain specified quality and within certain costs in a stipulated time fulfilling the promises given to the customer.
  • 63. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Functional Support 1. Production Planning and control. 2. Industrial Engineering. 3. Maintenance and Quality Control. Input Transaction and Documents 1. Production Programme 2. Production Schedule 3. Process Planning Sheet 4. Job Card 5. Material Requirement etc.  Material Management System Functional Support: 1. Forecast and Planning 2. Procurement 3. Purchase Ordering 4. Goods receipts 5. Bill passing and Control. The system modules for Materials Management are:  POMS (Purchase Order Management System); which fails to access to vendor details.  IMS (Inventory Management System); this gives item details, Receipts, issue, Adjustments and returns etc.  HR System The system modules for HR Management are:  Payroll Module  HRM module (Gives employee details).  Functional Support:  Planning personnel requirements.  Analyzing Performance.  Payroll module.  Salary administration etc.
  • 64. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Other Important Specifications Types of Network: Fiber connected network. Office Automation: Supported by Ramco ERP System. Types of Servers: There are mainly 20 servers in CSL. Some of them are;  Mail server.  ERP Server.  Intranet Server.  Tribon Server and modeling.  Web based application server.  Domain controller. Security Systems:  UTM (Unified Threat Management System, which is a security system. It protects against antivirus angiosperm, intrusion detection, filtration etc.  Antivirus Software  Spyware Protection  Content Filtering Internet Connectivity: Four Broadband Internet Connections Types of operating Systems used:  Client Windows 7  Server Windows-2007 server  Mail server- Linux, deep root The ship repairs Department, for its convenience uses a tailor-made ERP system separately, known as ISRS (Integrated Ship Repair System) in which the commercial and financial aspects are entered and frequently updated to the RAMCO system. Thus all system facilitating functions for other departments are done by the IS department. The intranet has many facilities which also facilitates the employers and employers to access to their individual data regarding No. of leaves, pay structure, late attendance, overtime, pay slip details etc.
  • 65. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu MATERIALS DEPARTMENT Material Department deals with the procurement and storage activities. Materials are procured on request arising from different departments. The materials are purchased at right quantity, right time and right price and from right suppliers. Objectives a. Ensure required materials, equipment, machineries and services etc. Of presented specifications from reliable sources in the required quantities at competitive price and right time to support production, plant and keep and other requirements. b. Uniformity of approach of all concerned departments in procurement activity. c. The purchases are made following fair and transparent practices with a view to ensure equitable opportunities between participating suppliers and contractor in tender situation. d. Total lead time for procurement system. e. Ensure the legal commercial interests of company are safeguarded at all times. Scope The material department covers various aspects of purchase and stores procedure in the Organization namely. a) Identifying Requirement b) Developing vendor base c) Raising demands d) Tendering e) Receipt of bids f) Bid evaluation g) Placement of orders h) Order follow up i) Payment j) Collection, storage and issue of materials k) Disposal of items l) Inventory Control The above procedures are followed for all ship building and capital procurement. The procedures shall be applicable for all ship repair procurement carries out through materials department. Special procedures for procurement in case of certain projects may also be separately issued by CMD depending on the requirements and the same shall also be applicable only to that project.
  • 66. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Fig 4.14 Materials Divisions  Materials -1  Materials -2  Steel, Stock Control Materials & Stores Materials 1 Dealing the procurement of  ADS Materials 1 &2  Projects Materials-1  Consumable Materials & Services  Electrical Spare Materials. Materials 2 Dealing the procurement of  Small ship Materials  Projects Materials- 2  Mechanical spares materials  Steel, Stock Control Materials & Stores Consisting of  Procurement of steel & Stock Control materials  General stores  Outfit Warehouse CGM(Material and Quality Control) DGM-M1 AGM-M1 DGM-M2 Manager-M2 AGM (Stores steel &SC) Manager (Steel & SC) DGM( I&QC) DEPARTMENT STRUCTURE
  • 67. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu  Bonded Stores  Customs Liaison Office Types of Procurement: a. Cash Purchase The Value of Individual indent and purchase will not exceed Rs. 5000/- such indent will be dealt by cash purchase section. b. Emergency Purchase Total value of emergency purchase indent shall not be more than Rs. 25000/- such indent will be dealt by emergency purchase section. c. Committee Purchase In case of items were specification cannot be detailed such as ornamental type of sanitary pipes, fittings, furnishings selection is to be carried out from the market. For this purpose a committee of 3 officers will be constituted from:  Material Department  Indenting Department  Finance Department The CGM Materials and QC shall be the authorized officer to constitute such Committee. d. Open Tender This is used for procurement of project items/ capital equipment and for bulk supplies of plant, electrode etc. and the services like interstate transport, customs clearance contract etc. This can be invited through public advertisement in one or two leading news paper of all India reputed and by displaying details in the internet for items with an estimated cost of above Rs.25 Lakhs. Likewise there are other types of procurements such as; a) Single Tender b) Limited Tender c) Website Tender d) Repeat Order e) Long Term Rate Contract f) Sub Contracting g) Fast Track procurement h) Procurement of ship repair materials Two types of Tender Process  Single Bid Tender  Two Bid Tender
  • 68. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu SINGLE BID TENDER Fig 4.15 Receipt of material Placement of Purchase order - Letter of indent Financial Concurrence and approval Purchase Proposal Comparitive Statements Techno-Commercial Evaluation Tender Opening Inviting Tender Receipt of Indent
  • 69. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu TWO BID TENDER Fig 4.16 Receipt Of Material Placement of Purchase Order- Letter of Indent Financial Concurrence and approval Purchase Proposal Tender Committee Comparitive Statements Price Bid Opening Techno-commercial Evaluation Tender Opening Inviting Tender Receipt Of indent
  • 70. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu SHIP REPAIR DEPARTMENT The ship repair department functions under the guidance of CGM (Ship Repair). The structure of this department is shown below: Fig 4.17 1. Ship Repair Operations Department 2. Ship Repair Commercial Department 3. Ship Repair Planning Department 4. Ship Repair Common shop Department- Concerned with engine and Machine Shop 5. Small Ship Division and Forward Planning The above sub departments under the ship repairs, performs the same activities as that of ship building department, which has been explained previously, But the activities are for ship repairs and not for building. The Ship repair department undertakes complex and sophisticated repairs to oil Rigs & ships of Navy, Coast Guard & Merchant Navy. Repair division of CSL is capable to undertake:  Repair Of Ships  Up gradation of ships of oil exploration industry.  Periodical Layup repairs  Life extension of naval ships, Coast Guard, Fisheries and Port trust besides merchant ships of SCI and ONGC. The ship repair division constitutes 30 % revenue to the Industry. CGM (Ship Repair) DGM (SR) DGM (SSD & FP) DGM (SSD) DGM (SRO) DGM (SRC) DGM (SRP) DGM (SR- CS) DEPARTMENT STRUCTURE
  • 71. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu SHIP REPAIR FACILITIES IN CSL The repair dock of Cochin Shipyard is of dimension like (270 x 45 x 12 m) and it can accommodate ships up to 1, 25,000 DWT and 3 quays:  280 m Length with 15 tone carriage,  208 m Length with 10 tone and,  5 tone carriage and 469 m Length with 20 tone carriage. The quays have adequate service lines of oxygen, acetylene, compressed air and power connections. The ship repair engine shop is equipped with modern machine looks like Plano miler (up to 30 T), bar boring equipment (up to 300 mm dia), inside grinding machines (up to 300 mm dia), heavy duty lathes (up to 12 m Length), horizontal drilling machine (up to 100 mm boring and 600 mm drilling), shrinkage equipment (up to 6 m x 900 mm outer dia), cylindrical grinding machine (630 mm x 2T), horizontal boring machine (up to 560 mm dia), dynamic balancing machine (up to 3t) etc. The overall ship repair activities are subdivided in to three. 1. Hull Repair 2. Machinery Repair 3. Electrical repair These three divisions are handled by the respective departments which come under the ship repair division. Repair Facilities Dock No.1 These three divisions are handled by the respective departments which come under the ship repair division. Quays There are three quays of 280 M length with 15 T carriages, 208 M Length with 10 T & 5T carriage and 460 M Length with 20 t Carriage. The quays have adequate service lines of oxygen, acetylene, compressed air and power connections. Engine and Machine Shop This shop is equipped with modern machine tools like Plano miler (up to 30 T), Bar boring equipment (up to 300 mm dia), Inside Grinding Machine (up to 300 mm dia), Heavy Duty lathes
  • 72. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu ( up to 12M Length), Horizontal Drilling machine (up to 100 mm boring & 600 mm drilling), Shrinkage equipment (up to 6 M x 900 mm O.D), Cylindrical Grinding Machine (630 mm dia x 2 T), Horizontal Boring machine (up to 560 mm dia), Dynamic Balancing Machine (up to 3 T) etc. Other Facilities  Hauling Carriage for safe docking and un-docking of ships.  High Pressure Water Jet for hull cleaning.  Blasting and Painting of conventional, epoxy and SPC systems.  Facility for Boiler re-tubing.  Facility for Tank Coating.  Electric shop for overhauling of motors and testing.  Electric power at 50 Hz & 60 Hz.  Pipeline supply of compressed air, oxygen and acetylene. Ship Repair Expertise Afl oat repairs The Yard has a term of experienced Engineers and skilled workmen exclusively for undertaking an afloat repair jobs. Availability of Sub-Contractors A captive pool of competent sub- contractors is readily available and can be engaged for various jobs at very short notice. Workmanship The quality of workmanship is of very high order and the owners on many occasions have gone on record, appreciating the quality work done in CSL. Many vessels have been repaired and handed over, ahead of schedule. Experience CSL has successfully undertaken repairs to more than a thousand ships belonging to a wide variety of clients including Shipping Corporation of India, Indian Navy, ONGC, Dredging Corporation of India, Union Territory of Lakshadweep Administration, Fisheries Survey of India, Ethiopian Shipping Lines, Transocean Offshore Deepwater Drilling Inc and vessels belonging to various ports of India.
  • 73. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu VIGILANCE DEPARTMENT Vigilance Department is headed by Vigilance Officer who is directly reporting to CMD. The vigilance department is continuing its activities with the thrust on creating greater awareness about vigilance and regular system improvements. At least one vigilance sensitization programme is being conducted per month. Also monthly meeting among field vigilance officers arranged to share the vigilance matters at the Vigilance Officers level.
  • 74. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu MEDICAL CENTRE As per those requirements the medical centre in CSL started as a first aid centre in the campus. Later on it developed to a routine OP centre, which is seen today. The head of the medical centre is the Chief Medical Officer, Dr. Jayakumar.B , who is reporting directly to Executive Director (Tech & HR). Main activities and facilities - Administration of first aid to victims of accident. - OP facilities for employees and their dependents. - Medical Reimbursement system. - Pharmacy facility. - Causality room. - Minor operation theatre. - Ambulance. - Two rest rooms for employees. - Group insurance policies for employees. - Medical advance facility for employees and dependents. - Whole hospital payment made directly by company for those employees. - Periodical medical check-up on age basis. - Family health record with medical centre. - Provide interaction facility between CMO and employees.
  • 75. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu STORE DEPARTMENT In department store materials, chemicals, gases, equipments, electrical goods, consumable items, spares etc, which are coded and entered into a database, Stores can be general stores and bonded stores. On receiving the purchase order from the materials department stores are intimated that materials are on the way to be stored. On carriage inward of materials, the receipt of materials is acknowledged and the quantity and materials are verified against purchase order. On completion of this initial inspection, GRIR is issued. On receipt of the GRIR, I& QA or indenting department does the inspection and on approval, materials are stored at general store and periodically released. GRIR is also issued to Finance Department. GRIR contains the details such as the item code no, description, customer, quantity received, quantity accepted, quantity rejected etc. Daily receipt of materials is entered into computerized stock ledger. The ERP system helps indenter and stores in informing the arrival of critical items. All the items reaching the general store are credited to stores through stores credit note. Database is maintained for each item, which contains all the details regarding that particular item. Issue of materials starts with the store requisition from planning. If any complaints arise of the materials issued at the production floor, stores issue a Non- confirmed Store Requisition (NSR) to the suppliers. Stores on the basis of commercial agreement with suppliers either return it to the suppliers, to be replaced or received or treat it as damage or scrap and processed for fresh delivery. On completion of the production, the production issues finished goods intimation report, and the balanced items after production are returned to stores through Stores Return Note (SRN). Materials in the bonded store will be periodically released after customs clearance at the request of intending department. Bonded store preserves imported items only. Bonded stores thus shall attend to customs and clearance and formalities and arrange to keep all equipments and other items imported under bond (without payment of customs duty) for ship repair and ship building purpose
  • 76. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Stores Department Table Receipt Custody Sub Store Stock Control Disposal Section  Records  Clearance of indigenous items  Receiving and Accounting  Rejected stores and disposal of rejected materials Fig 4.18
  • 77. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu UTILITY AND MAINTENANCE DEPARTMENT CSL has very efficient and effective maintenance department, which take care of all the machinery asset maintenance activities. U&M Department provides support to the Technical Department. They provide Tools, Equipments such as Cranes, maintenance tools etc and also they creating Infrastructural facilities and Maintenance U &M has four sub-Departments, listed below: 1. Mechanical Maintenance Department 2. Electrical Maintenance Department 3. Civil Maintenance Department 4. Electronics Maintenance Department Maintenance Policy in CSL  Preventive Maintenance  Breakdown Maintenance  Predictive Maintenance
  • 78. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Fig 4.19 DT CGM Tech GM AGM Electrical Ship Repair Ship Building Main Receiving Station General Electrical Mechanical Mech. Maintenance 1 Mech. Maintenance 2 Electronics Service Gas Line Comprosers Transportation Material handling Equipments, Travellers DEPARTMENT STRUCTURE
  • 79. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu PROJECT DEPARTMENT The project department basically is concerned with overall infrastructural development of CSL. The project department is headed by DGM projects. This department finds out feasibility for development and improvements for the company. The whole responsibility of future development planning is in the hands of this department. Presently the project departments also concentrate on the small ship division project.
  • 80. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu OFFICIAL LANGUALE IMPLEMENTATION CELL Article 120,210,343-351 of the Indian Constitution says the importance of official language. Hindi is the Official language, the law saying that every Central Government Institution/company must have an Official language Cell. All the Hindi Promotional activities are taken by this cell. Such as Hindi exams, contests, Programs etc. and also Hindi Offices have some special allowances. Hindi Cell comes under the Department of Industrial Relations.CSL have Official Language Implementation committee. In pursuance of sub rule (4) of rule 10 of the official language (use for official purposes of the union) Rule 1976, Government of India have notified CSL in the gazette of India as having acquired working knowledge/ proficiency in Hindi by more than 80% of Ministerial staff of the company. Cochin Shipyard received the Rajyasabha Rolling Trophy and Certificate instituted by Kochi TOLIC (PSUs) for the best implementation of official Language during the year 2010-2011 among the companies having more than 200 employees CSL team won second Prize in the Official Language Quiz competition organized by Kochi TOLIC (PSUs) in connection with joint Hindi week celebration. Two employees were awarded with the cash prize under the incentive scheme for doing original work in Hindi. An Official Language Orientation Programme was organized for senior officers of the company on 30th December 2011. Hindi software has been installed in computers used for administrative purposes. As part of the Implementation of Official Language Policy of Government of India, CSL is observing first Wednesday of every month as Hindi Day. In order to enable easy understanding by employees transliteration of „Aaj Ka Shabd’ in regional language is being displayed in Internet as also on the notice board. CSL released the third issue of Hindi house journal ‘Sagar Ratna’.
  • 81. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu INSPECTION & QUALITT CONTROL DEPARTMENT The Inspection & Quality Control department co-ordinates the activities of the various functional Groups in the Organization such as to have production at the most economic level without staking product quality and customer satisfaction. Quality Assurance Process:- Quality Assurance Process starts right when a quotation for components is accepted and the Information is intimated by planning to I& C. I & QC check the quality of the samples provided by the suppliers. I & QC finally issues the accept/reject order of quotation. Once the supplier sends the goods to the stores; Stores on receipt of goods issue Goods Receipt Inspection Report (GRIR) to I& QC. I & QC checks the quality of components send and issue the accept/ reject proposal. The inspection report is send to planning as well as concerned production floor. If I& QC rejects the component, a Non Confirmation Report, is sent back through the Material Department. Supplier does necessary servicing of the parts or the replacement of goods. But If the components has to accepted in spite of rejection offered by I & QC, because of urgency in production or the concerned part will not harm the assembly or the extra ordinary delay involved in fresh delivery, The planning Department issues deviation concession note and gets the approval of I & QC then use the component in Production. Inventory Control Technique The Inventory control techniques mainly used are: 1. ABC Analysis 2. Review Stock 3. Standardization 4. Codification (Symbolic approach & Engineering drawing nos.)
  • 82. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu Registration of Vendors After initial vendor list is prepared the following procedures are followed to register their name in approved list. 1. Application for Registration (forms available in website) 2. Applicants shall satisfy through documentary evidence then financial stability, income tax clearance, capacity to perform and produce performance certificate from those whom they are already supplying. 3. Establish office with telephone for direct contact is essentials. 4. The firm‟s premises may be inspected by the officers to verify the quality standards of products manufacture and other details shown in the application. Performance report from Government department and PSU‟s will be considered for registration. 5. A reference may also be made about their performance to excising clients. SSI shall satisfy registration requirement. 6. Vendor evaluation and rating cards Vendor Rating Card maintained by CSL for evaluating performance of vendor against each order. Default in fulfilling the terms and conditions of the order and general faults are recorded and the performance is renewed every year by Material Department. Removal and Black Listing of Vendors The Vendors are temporarily removed from the approved the list depending on gravity of default. The vendors may be: » Put on hold in case of furnishing insufficient or vague information and wasting time on clarification. » Blacklisted or delisted If they supply false and misleading information or If found unreliable in supply. » Banned If they are bankrupt, insolvent or partitioned. When negotiating an international sales contract, both parties need to pay as much attention to the terms of sale as to the sales price. To make it as clear as possible, an international set of trade terms (INCOTERMS) has been adopted by most countries that defines exactly the responsibilities and risks of both the buyer and seller including while the merchandise is in transit. The CSL complies with this.
  • 83. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu AIR DEFENCE SHIP AND MATERIAL PLANNING DEPARTMENT The prestigious Air Craft carrier which is the dream project of Cochin Shipyard Limited is successfully progressing in the yard. All the materials, planning and controlling of the construction of IAC is undertaken as a separate wing under the guidance of Director Operations. The activities are same as that of Ship Building planning. The construction process is on its way with tight security systems. The Air Craft carrier will have the following features.  Length -260 Mtrs  Breath – 60 Mtrs  Draft – 8.4 Mtrs  Depth – 25.6 Mtrs  Displacement – 37500 Tonnes The ship will move at max speed of 28Knots and carry about 30 Air Crafts. 17 of these Air Craft can be accommodated in the hanger. The hull consists of around 900 blocks of varied tonnage.
  • 84. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu CHAPTER 5
  • 85. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu SWOT ANALYSIS SWOT analysis is an effective management technique to evaluate the business environment of an organization both internal and external to analyze the present status and future prospectus of the firm. The strength and weakness of the organization, which are internal to the firm, are identified. The opportunities and threat offered by business environment, which are external to the organizatio n, are also analyzed. Then suitable strategy can be formulated by taking both internal and external factors of the business unit. SWOT analysis for CSL is a step in arriving at the strategy decision for the organization. STRENGTH 1. India‟s Only profit Making Shipyard 2. Transparent and Rigid Rules Structure. 3. Innovation and Advanced Technology updation. 4. Willingness to accept and adapt to changes. 5. Lean work force. 6. Inter-Departments Coordination. 7. Reasonable supply chain position including sub contractors. 8. Expanding customer base. 9. Security methods still unknown to a third party. (Eg.36 CCTV Cameras active by 24x7) 10. Availability of Government subsidy. 11. Improved the No of trainees. WEAKNESS 1. Low capacity of Cranes comparing other International Shipyards. 2. Slow Technology adoption. 3. Slow decision making about Trade Union problems. 4. Outdated technical process. 5. Low productivity. 6. Inadequate Government support. 7. The growth rate is lower in the case of yard development comparing to other competitors. 8. Increasing of Production and equipment costs. 9. Interference of State Government. 10. No new strategy for Improving Good business. 11. No new innovative decisions from Ministry of Shipping
  • 86. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu OPPERTUNITIES 1. Establishing Good Customer relation 2. Expanding global market. 3. Possible shift of market to low cost countries. 4. Likely emergence of strong and captive domestic market and increased demand from Navy, Coast Guard and Island territories. 5. Efficient Training and Development makes Employee attraction. 6. Increased the number of Ship repairs. 7. Decreased Government rigidity of process. 8. Awards and achievements give a positive effect on new contracts. 9. CSL have Highest Growth rate comparing last Decade. THREATS 1. Withdrawal of subsidy scheme from August 2007. 2. Rising cost of man power and material. 3. Increasing Competition. 4. Archaic Labour laws. 5. Increasing Complexity of tax structure, introduction of new taxes, and instance of administration of taxes. 6. Comparing other International Shipyards, CSL have very low capacity equipments. 7. Increasing the No of Political Trade Unions. 8. Hic of Material waste 9. Decreasing the number of Ship customers in the world.
  • 87. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu CHAPTER 6
  • 88. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu CONCLUSION Cochin shipyard is presently operating at 100% capacity utilization. There is no space capacity available. Presently the yard can construct ships up to 1, 10,000 DWT. Cochin Shipyard has planned for enhancing its capacity through a larger dock up to 25000-30000 DWT. The yard also got GOI approval. The shipyard also plans to introduce Dock arms and Moveable Hydraulically Activated Platform. Cochin Shipyard is one of the first yards and largest in India to use the Integrated Hull Outfitting and Painting (IHOP) system in construction. Under this technology the ship is constructed in modules, fully outfitted and painted before assembly. This method of construction is faster and safer compared to the traditional method of construction. Besides, the yard was also one of the first shipyards to adopt the Tribon software for ship design and introducing CAD/CAM. Not only that, presently, the Cochin Shipyard is the only one in India that has the capability to build large and modern ships. Another credit is that it is one and only profit making ship industry in India. It is important to acknowledge and appreciate the historical role played by CSL in the realm of growth of ship building in our country and has overcome some of its constraints.
  • 89. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu FINDINGS 1. Cochin Shipyard Limited is the only profit making Shipyard now in India. 2. Rate of profit is little bit decreased last year. 3. CSL have a very good quality workforce. 4. State Government is very much corporative to the CSL programs. 5. Efficient Recruitment polices. 6. Efficient and effective METI Training 7. Efficient Security precautions. 8. Comparing with the other International Shipyards, CSL didn‟t have a high capacity Cranes. 9. Any employee can approach HR Manager without any permission. 10. No of Trade Unions are decreased.
  • 90. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu SUGGESTIONS 1. Designation boards in the table to the Office staffs will help to avoid confusions. 2. Increase the Number of Ship repairs. 3. Improve the METI Training Classes facilities. 4. Allowing Projects for Educational Purpose is needed. 5. Increase the quality of food in CSEC (Cochin Shipyard Employees canteen) by increasing the price of food in 2-5 %. 6. Provide vehicle facility to the Gusts and Visitors within the CSL area. (Because of different Department have big distance each other) 7. Modernize the security services by implementing new Technology. 8. Upgrade the employees and trainees‟ Uniform‟s Quality, Design, colour, style etc. 9. Ensure the Trade Union Co-operation needed. 10.Provide New sign in sign-out points needed for avoiding rush.
  • 91. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu BIBLOGRAPHY 1. Certified Standing Order (2011) 2. Settlement of Amendment. (1972-2010) 3. Annual Report Cochin Shipyard Limited 2011-2012 4. http://www.cochinshipyard.com http://wikipedia.com
  • 92. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu
  • 93. Organizational Study Report Cochin Shipyard Limited, Cochi Caarmel Engineering College, Perunadu