Organizational study report (MBA)


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Organizational study report (MBA)

  1. 1. REPORT of the ORGANISATION STUDY PROGRAMME atHMT MACHINE TOOLS LIMITED KALAMASSERY Period 23.05.2011 to 22.06.2011 Submitted by Job Thomas Cochin University of Science and Technology Kochi – 682 022 MAY-JUNE 2011 1
  2. 2. CONTENTSTitle Page Number 2
  3. 3. CHAPTER 1 INTRODUCTION TO ORGANISATION STUDYINTRODUCTIONOrganizational studies, sometimes known as organizational science, encompass thesystematic study and careful application of knowledge about how people act withinorganizations. Organizational studies sometimes is considered a sister field for, oroverarching designation that includes, the following disciplines: industrial andorganizational psychology, organizational behavior, human resources, andmanagement.Whenever people interact in organizations, many factors come into play. Modernorganizational studies attempt to understand and model these factors. Like allmodernist social sciences, organizational studies seek to control, predict, andexplain. There is some controversy over the ethics of controlling workers behavior,as well as the manner in which workers are treated. As such, organizationalbehaviour or OB have at times been accused of being the scientific tool of thepowerful. Those accusations notwithstanding, OB plays a major role inorganizational development, enhancing organizational performance, as well asindividual and group performance/satisfaction/commitment. The orgnaisation studyis the systematic learning process about an organisation to understand the diiferentroles of each members in the organization. In organisation study, the different roles,namely, interpersonal roles, decisional roles and informational roles of variousmembers are evaluated and how it affects the functioning of the organisation isanalysed. In this work, M/s HMT Machine Tool Limited at Kalamssery wasselected for the organization study.An industry, which has undergone a radical shift in its paradigm thinking, the Indianmachine tool industry is later recognized as a provider of cost-effective high qualitylean manufacturing solutions. The industry resiliently supports all its users toenhance productivity as well as improve competitiveness, for the betterment of thefinal customer. Being an integral sector, growth of the machine tool industry has animmense bearing on the entire economy, especially Indias manufacturing industry.And it is even more crucial for development of the countrys strategic segmentssuch as defense, railways, space, and atomic energy. World over too, industrialized-advanced countries have created market niches on the back of a well-developed andsupportive machine tool sector.HMT was conceived by the Government of India in 1949, and was incorporated in1953, with the objective of producing a limited range of machine tools, required forbuilding an industrial edifice for the country. With the success achieved in theinitial years in absorbing the technology and in attaining production competence farahead of the original plans, the Company launched a bold plan of diversificationand expansion which resulted in the duplication of the Bangalore Unit and thesetting up of new units at Pinjore, Kalamassery and Hyderabad. HMT MTL at 3
  4. 4. Kalamassery is established in 1953 for producing the lathe. In the process ofexpansion, HMT MTLK started producing printing machines in 1972.OBJECTIVES OF THE STUDY: To give familiarize with the business organization. To gain familiarize with the different departments in the organization and their functioning. To understand how the key business processes are carried out in organizations. Understand how information is used in organization for decision making at various levels. To relate theory with practice.METHODOLOGY OF THE STUDY: Both primary and secondary data is collected from the organization. Primary data is collected through interviews with employees at various levels. Secondary data is obtained from company manuals especially quality manuals company web site and other magazines and news papers. Direct observation is used to understand the production process.PERIOD OF STUDYThe study was held from 23/05/2010 to 22/06/2010.LIMITATIONS OF THE STUDY The findings need not be conclusive but only indicative. Area of concentration was mainly HMT Machines tools limited, Kalamassery. The time span of this project was very limited to collect all the information. 4
  5. 5. CHAPTER 2 INDUSTRY PROFILE, COMPANY PROFILE & PRODUCT PROFILE OF HMTINDUSTRY PROFILEThe machine tool industry constitutes the backbone of the industrial sector and isvital for the growth of the Indian machine tool industry. Even though the Indianmachine tool industry is a small segment of the engineering industry, it plays a veryimportant role in the development and technology up gradation of the engineeringindustry. The quality and cost of engineering products depends on the quality ofmother machine tools and their automation level. The development of the machinetool industry is therefore of paramount importance for a competitive and self reliantindustrial structure.The growth of Indian machine tool industry and major user industries clearly showsthe close inter dependencies of indigenous machine tools and the major userindustries. This level of performance of the major user industries has been madepossible only because of support of indigenous manufacture large and small, tomeet almost all the requirement of machine tools, conventional, CNC specialpurpose and flexible manufacturing lines required by them.Had the indigenous machine tool industry not been able to meet the major userindustries demand, then these machine tools would have to be imported, at muchhigher prices, irrespective of rising cost of foreign exchange or not. This wouldhave severely affected not only the country GNP and the overall economy of thecountry but not severely impaired the country space and the defense sector.PROFILE OF COMPANY HMTBy end of the Second World War, the government of India confronted by a bigproblem of disposing the colossal war waste. Ultimately, a committee wasconstituted to inquire into the possibilities. The committee report of 1948 proposedthe establishment of a government owned machine tool industry. This was expectedto fulfill two aspects. The first was being utilization of the Rs.4000 million worth ofmetallic waste. The second was the incorporation of a state owned infrastructure –manufacturing facility. The result was the birth of THE HINDUSTAN MACHINETOOLS LIMITED, which diversified in due course of time to the present stature ofthe multi core, multi location, and multi unit, multi product industrial giant HMTLtd.The HMT Ltd was started as a single factory to produce Tool Room Lathe atBangalore in collaboration with M/s Oerlikon of Switzerland in 1953, with a 5
  6. 6. capacity to manufacture around 400 machines per year. Since then differentcollaborations, continued in house R&D and tremendous marketing efforts broughtHMT, to present status.The growth of HMT Ltd. was characterized by the forward and backwardintegration of technology and product diversification. Thus the company that statedwith manufacturing and selling lathes expanded its machine tools products range toevolve as the ultimate solution in metal cutting. The product diversification effortstook the company to the business of watches in 1962, tractor in 1971, die-casting onplastic machinery in 1971, printing machinery in 1972, presses in 1972, lamps &lamp making machinery in 1976, food processing machinery in 1980, CNC systemsin 1986, ball screws in 1986 and reconditioning in 1990.The multi product activities made HMT Ltd. change its identity as HindustanMachine Tools Limited. Today HMT Ltd has 16 manufacturing units with 22products divisions spread through the length and breath of India. A subsidiary viz.,HMT (international) Ltd undertakes the exports of the company. They are alsoexport agents for general other Indian companies.HMT Ltd was restructured in 1992 to facilitate better administration of the multiproduct business activities. Accordingly, the following business group wasestablished. Machine tools business group, to concentrate on mental cutting machines Industrial machinery business group to deal with printing machines, die- casting and plastic injection molding machines food processing machines and metal forming machines Agricultural business group to concentrate on tractor Engineering components business group to deal with casting and ball screws Consumer product business group, to deal with watches and lamps IN ADDITION TO THESE BUSINESS GROUPS, THE COMPANY OWNS THRESS SUBSIDIARIES AS FOLLOWS: HMT (international) Ltd. which undertakes overseas project & exports PRAGA Tools Ltd. which manufacturers machine tools HMT bearing Ltd which manufacture precision bearing in collaboration with M/S Kozo Japan As per the revival plan of this public sector industry a turn around plan hasintroduced in early days of this millennium and re-organized as HMT Ltd holdingcompany including tractor division and presently comprises of the followingsubsidiaries. 1. HMT Machine Tools Limited. 2. HMT Watches Limited 3. HMT Chinar Watches Limited 4. HMT Bearing Limited 5. HMT International Limited 6. PRAGA Tools Limited 6
  7. 7. HMT MTL, Bangalore HMT Machine Tools Limited. STRUCTURE OF HMT Ltd HMT MTL, Pinjore. HMT Watches Limited HMT MTL, Kalamassery. HMT Chinar Watches Limited7 HMT MTL, Hyderabad HMT Bearing Limited HMT Ltd HMT MTL, Ajmer. HMT International Limited PRAGA Tools Limited
  8. 8. 1. HMT MACHINE TOOLS LIMITEDThe HMT Machine Tools Limited is engaged in the manufacture and marketing ofgeneral purpose machine tools, special purpose machine tools, computernumerically controlled machine tools, precision machinery system, printingmachines, metal forming passes, dies casting and plastic injection moldingmachines, ferrous and non-ferrous casting.The product range of HMT machine tools, Bangalore Heavy duty lathes Single and multi spindle automates Radial drilling machines Multi spindle drills Cylindrical & surface grinders Laser cutting machines CNC turn mill centers CNC wire cut EDMPINJOREFMS & FMC Horizontal machining centers Vertical machining centers Milling machines Broaching machinesKALAMASSERY CNC turning center Turn mill center Flexible turning cell Copying lathes Center lathes Offset printing machines Paper cutting machinesHYDERABAD Special purpose machines Horizontal machining center FMS CNC horizontal boring machines Bed type & floor types boring machinesAJMER Grinding machines SPM grinders CNC grindersFACILITIES AVAILABLE IN DIFFERENT MACHINE TOOL UNITS CNC ram type plano miller Horizontal machining centers 8
  9. 9. Vertical machining centers Vertical machining centers Horizontal jog boring machines CNC turning centers Turn mill centers Slide way grinders Cylindrical grinders Internal grinders Precision gear shapers Precision gear hobbers Gear grinders Induction hardening machines 3D co-ordinate measuring machines2. HMT WATCHES LIMITEDHMT Watch Limited manufactures and markets watches including hand wound /automatic & quarts3. HMT CHINAR WATCHESHMT Chinar Watches limited is also one of the subsidiaries engaged in themanufacture of chinar model watches located in Srinagar, Kashmir state.4. HMT BEARING LIMITEDHMT Bearing Limited is one of the subsidiaries engaged in the manufacture ofdifferent types of industrial bearing situated in Hyderabad.5. HMT INTERNATIONAL LIMITED HMT International is engaged in the export of HMT’s range of productworldwide HMT (I) also market and backed up by a good sales & services network.It also under takes Turkey project & technical services for developing countries.6. PRAGA TOOLS LIMITEDPraga Tools Ltd is also a subsidiary of HMT Limited engaged in the manufacture ofmachine tools located in Hyderabad.THE KALAMASSERY COMPLEX OF HMT LIMITED KALAMASSERYThe Kalamassery unit, the 4th machine tools unit was established in 1963 and startedproduction in 1964. The unit originally manufactured only two types of centerlathes viz. H & LB, but later added special purpose lathes like copying and turrentlathes. Model L. T-20 was the first product to be indigenously developed by the unit(1968) and the development of this product was a landmark in the history of theunit. The production of this was later licensed to M/S Qetcos, Kerala, Matools,Philippines Cyelon Steel Corporation Srilanka. The original center lathes H&LBwere then replaced by a new family of unified series of lathes, which was designed 9
  10. 10. and developed by the unit, incorporating the concepts of typification,standardization & unification.PRODUCT DEVELOPMENT AT MACHINE TOOL UNIT KALAMASSERYThe following products are developed by the machines tools unit of Kalamasseryindigenously. Year Products 1969-70 LT-20 1976-77 NH./NL 1976-77 FC-25 1980-81 TL-20 1981-82 SBCNC 35 1982-83 SBCNC 55 1986-89 STC 25 1990-91 STC 15 1991-92 ECONOCNC 1992-93 STC 20 1993-94 NL 180 1994-95 NL 180 1996-97 TS 20 (Twin spindle) 1997-98 AUTOCOMP 1997-98 STALLION-200 1999-2000 AUTOMAN 2003 MCECL 2004 SMC WITH GANTORY CODER 2004 STALLION 1005DIVERSIFICATION OF KALAMASSERY UNIT AND BIRTH OFPRINTING MACHINE DIVISIONDuring the period 1972-73, Kalamassery unit diversified its product range toinclude printing machinery division (PMK). The commercial entry of PMK waswith two types of letter presses viz. RTE & RTAF under collaboration with M/SNebiolo of Italy. Autoplaten, an indigenous development came up subsequently.During the ensuring years, the printing machinery division came up subsequently.During the ensuring years, the printing machinery division came up with offsetpress viz. OMIR in collaboration with M/S Nebiolo later indigenous offset pressviz. SOM 136 was introduced to the market. The first two-colour machine fromHMT was OMIR in collaboration with M/S Korning & Baver of Germany. Thelatest development of PMK is the paper-cutting guillotine PG 92D3, incollaboration with M/S Divano Blinders of Italy. 10
  11. 11. THE CURRENT PRODUCT RANGE Product Model Offset printing machines SOM436 SOM425(four colour) SOM236 SOM231 SOM225 (double colour) SOM136 SOM131 SOM125g (single colour) Paper cutting machine PG-92D3The Kalamassery units of HMT are famous for development activities. Theirproduct have always fetched award and prized at different trade fair & competitions.To name a few are the prizes bagged in different IMTEX fairs by FC-25, SBC &SBCNC machines. The CNC lathe model STC has won the VASVIK Industrialresearch award 1987 instituted by the Vindhalaxi Audyogik Samsadhan VikasKendra, (VASVIK) for outstanding advancement of science and technology.The machine tool product of this unit have been certified by RWTUV-(Reinischwest falischer techniseruber wachungs verein) an international certification agencyof high repute as confirming to total quality management system.Both the division have been awarded ISO 9001 certification by IROS. Themanufacturing shop at MTK is supported by various infrastructural facilities likehigh technology CNC machine centres, testing facilities, foundry, heat treatment,computer system, CAD systems etc. Around 600 well experienced personal formthe human resources of the unit keeping in line with the current corporate trends.TRANING CENTREThe manufacturing shops at MTK are supported by various infrastructure facilitieslike, high technology CNC machining center, testing facilities foundry, heattreatment, computer system CAD system etc around 800 well experienced personalform the human resources of the unit keeping in line with the current corporatetrends. This unit views HRD as one of the primary concerns as a measure toincrease productivity and enhance social stranding. The company has a wellestablished training system by personnel of high technical and management skills.The HRD programme under taken by then includes the following. i. Management orientation programme. ii. Supervisory development programme. iii. Customer training programme to equip the customer for the optimum utilization of HMT machines. iv. Periodic awareness training programme for employees relating to safety, quality, advanced technology, information technology etc. v. Multi-skill training to machine operators. vi. Induction and in-plant training to fresh recruits and transferees. 11
  12. 12. vii. Apprentice training programme under the apprentice act. viii. Project guidance in management or technology to students. ix. Industrial familiarization program for engineering college students.THE MARKETING NETWORK OF HMT LTDThe machine tools marketing divisions with its head quarters at Bangalore andhaving wide network of regional and divisional offices spread throughout Indiacaters to the marketing needs of this unit at the primary level. To co-ordinate themarketing activities at unit level and co offer technical support to machine toolmarketing, a strong sales and services team is constituted at unit level. HMT’smajor customer includes defense, railways, automobile and other engineeringindustries in various sectors.MAIN INLAND COMPETITORS FOR THE UNIT’S PRODUCTS Mysore Kirlosker Ltd ACE Designers NC Machines Private Ltd Lakshmi Machine WorksMAIN FOREIGN COMPETITORS FOR THE UNIT’S PRODUCTS a) Okuma, Japan b) Nori Saiki, Co Ltd., Japan c) Tukisama, Japan d) Muzak, Japan e) Iregai, Japan f) GDM, Germany g) Churchill, England h) Ernault Tayoda, Japan i) Victor, Taiwan j) Tuma, Korea k) EMAS, GermanyWELFARE MEASURES IN HMT, KALAMASSERY 1. Company quarters are provided to employees. 2. Subsidized transport facility is provided for employees residing outside HMT township. 3. Company sponsors a central welfare association. This association has four subsidiary clubs, i.e. arts and dramatic club, sports club, social club, educational society. 4. Subsidized canteen facility is provided to employees. 12
  13. 13. WHAT IS “5S” Sort out unnecessary items in the workplace and discard1S SEIRI them. Arrange necessary items in good order, so that they can2S SEITION be easily picked for use. A place for everything and everything in its place. Clean your workplace, completely so that there is no3S SEISO dust on the floor, machine and equipments. Maintain high standard of house keeping and workplace4S SEIETSU organization at all times. Train people to follow good house keeping disciplines5S SHITSUKE autonomously.INTERNATIONAL STANDARDS FOR QUALITY MANAGEMENTGood quality system consists of sound technical and administrative procedures forassuring quality. QA offers more scope for reducing costs prerequisites andcharacteristics of good quality assurance and quality management. The challenge toa developing nation is to motivate processors and manufactures to adopt andimplement these standards and to establish a credible nation quality registrationscheme, which will be recognized by trading partners.In an increasing number of markets and industries third party quality assessmentand registration is becoming a pre-requisite for doing business. ISO 9000registration as considered the minimum acceptable level for a supplier and thosewho cannot demonstrate this minimum level may not only have difficulty in sellingin certain markets they may be barren from those markets.Not only must a defendant be able to demonstrate that his product is well designedand conforms to all standards and regulations, but he must be able to demonstratethat the product is manufactured consistently with in a system that conforms at leastto internationally accepted standards.IN ADDITION, ISO 9000 SERIES STANDARD ALSO Motivates exporters Sets a base line Establishes reasonable standards for government procurement Focus training and professional development Sets general market procedure for regulating health and safety Reduces time consuming audits by costumes and regulators Raises levels of motivation, co-operation workmanship and quality awareness. Improves efficiency, reduces scrap and rework. 13
  14. 14. The following topics are dealt with in the ISO 9000 series of standards. 1. ISO 9000 – Quality management and quality assurance standards section and use. 2. ISO 9000 – Model for quality assurance in design development, production installation, and servicing. 3. ISO 9002 – Model for quality assurance in production and installation. 4. ISO 9003 – Guidelines on development of quality management system to minimize costs and maximize benefits.QUALITY POLICYHMT MLT is committed to total customer satisfaction by the supply of qualityproducts and services through: Continuous improvement of technology of product and processes. Innovation and creativity. Effective implementation of quality management system. Monitoring the effective realization of quality objectives and periodical review of its suitability.HMT ORGANISATIONAL CHART PRESIDENT OF INDIA Ministry of Heavy Industries Board of directors Chairman & Managing Director (C&MD) Managing directors (Subsidiary Chiefs) Departments 1. Finance 2. Human resource management 3. Marketing 4. Research & Development 5. Technology Development 14
  15. 15. 15
  16. 16. DESIGNATIONS IN HMT UNITSOFFICERS General Manager Joint General Manager Deputy Assistant General Manager Assistant General Manager / Deputy Chief Engineer Senior Engineer Deputy Manager / Engineer Officer / Deputy Engineer Junior officer / Assistant Engineer 16
  17. 17. EMPLOYEES Worker Supervisor Worker Grade WG-VI Worker Grade WG-V Worker Grade WG-IV Worker Grade WG-III Worker Grade WG-II Worker Grade WG-I 17
  18. 18. ORGANISATION STRUCTURE OF UNIT AT KALAMASSERY (HMT MACHINE TOOLS LIMITED, KALAMASSERY) Unit chief (GM)Sales Inspect Design Materi Planning Production Finance P ion & & al e Qualit develo engine rs y pment ering o Contro Manufac Repair & n l turing, maintenance n producti , preventive on e maintenance control, , energy l civil conversion, Mate engineer reconditioni Incoming rials ing ng inspection Product develop, stores in process , inspection product up dispat & ch calibration, gradation, MIS, final CAD, stds, corp. Cash & inspection technical planning, inward & testing, library industrial bill, quantity eng, Assembly outward mgmt computer bill, system centre, wages, productio material n account planning Sales eng., Quality servicing , job HRD, order welfare, executio IR n Foundry Vigilance Safety Security PR 18
  19. 19. CHAPTER 3 STUDY OF DEPRATMENTS IN HMT MTLKOrganization is a system of clearly defined structure of activities consciouslydesigned to allow organizational participants to work effectively towards commongoals. The organization is divided into various departments to improve themanagement and control. Organizational studies are attempts to observe the work ofmanagers and employees in each department in the organizations and learn thesecrets of managerial effectiveness. It also broadens the understanding oforganizational processes and fruitfully blends management concepts with work lifepractices.The departments in the HMT MTL at Kalamassery are broadly classified into two,viz., production departments and service departments. The details are given below. PRODUCTION DEPRATMENTS SERVICE DEPARTMENTS 1. Training centre Foundry department 2. Human resource management 3. Public relations Machine tool department 4. Finance 1. Machine tool manufacturing 5. Planning 2. Machine tool assembly 6. Purchase 7. Sales Printing machine department 8. Quality control and inspection 1. Printing machine manufacturing 9. Stores 2. Printing machine assembly 10. Plant services 11. Safety & securityThe marketing department of the holding company HMT Ltd is shared by all theunits of HMT Ltd located at various parts of the country. Hence separate marketingdepartment is not available at HMT MTL at Kalamssery. 19
  20. 20. PURCHASE DEPARTMENT INTRODUCTION In the present scenario of increased competition, reduced time to market and globalised outsourcing, material management has evolved as one of the major factors for the success of an organization. The Purchase function, a key component of material management is now functioning with more agility and is shouldered with more responsibility than before. In HMT Ltd., and its subsidiary companies, the purchase function is carried out by the purchase department of the respective unit or divisions and is responsible for procurement of the unit or division’s requirement. The heads of the material department and purchase department are accountable for effective discharge of purchase functions within the framework of purchase policy of the company. STRUCTURE OF DEPARTMENT JGM DGM DGM DGM (printing) (Machine Tool) (Subcontract) AGM DCE (subcontract (MaterialManager Manager Planning) Manager Managerpurchase (Material (purchase) Planning) Manger Manager Store Office Office Store Officer Staff Staff officer (Material Planning) 20
  21. 21. OBJECTIVES Timely procurement and supply of required materials with prescribed specifications and quality at the most competitive price and terms. Fair, Consistent and transparent purchase practice. Continuous search for alternate sources of supply and to develop reliable sources of supply. CLASSIFICATION OF MATERIALS All purchases should be broadly categorized into Revenue and Capital. Under Revenue, further categorization shall be made into Production and Non production items. The Production items shall be categorized into “A” “B” and “C”. MATERIAL PURCHASE REQUEST 1. Material Purchase Request duly verified and signed by the Material Chief shall be the basis for initiating procurement action by the Purchase Department. The quantity and delivery schedule should be linked suitably to the production programme, taking into account the lead time for procurement. 2. MPR is raised in matching with maximum requirement of quarterly or half yearly production dispatch schedule as well as delivery schedule items keeping in view the operational plan required at a time and same should be received once in a month by the purchase committee. 3. The MPR shall be raised with requisite copy duly approved by the material chief. 4. On the receipt of MPR, the Purchase department will enter the MPR no. and distribute to the date of receipt in the MPR control register and distribute to the purchase officer. 5. For proprietary items, MPRs must be accompanied by proprietary article certified with source of supply issued by the concerned. MODES OF PURCHASE 1. TENDER SYSTEM Tender system is adopted to procure materials at competitive rates and different types of tenders are in vogue viz. Open Tender, Limited Tender, Single tender and local purchases through spot offers (spot tender). Where it is wanted, Global tender may be resorted to. Procurement process can also be through electronic mode (e- tendering, receipt of offer through secured mails) within the provisions of Purchase manual and relevant acts.i. OPEN TENDER: Open tender refers to calling of quotations by advertising tender enquiry in website of the company and at least in one reputed local or national newspaper. All tender 21
  22. 22. notices are to be approved by the competent authority. All tender notices are to be approved by the unit chief / purchase chief. Open tender have to be resorted to for an item where the estimated tender value of purchase exceeds 25 lakhs. Under no circumstances, the advertisement is published in the category of classified advertisements. The time allowed for receiving quotations against open tender is fixed at a minimum of 21 days from the date of release of tender enquiry Notice. In case on non-receipt of at least three offers, the due date is extended for a further period of 7 days. In case of open tenders two-part system is followed, viz., technical bid and the price bid. The tender forms are priced suitably to recover the cost of advertisement. Purchase committee is entrusted to finalise fee for tender document. The security deposit and terms and conditions of tender is furnished in the tender notice. ii. LIMITED TENDER: Limited tenders are those addressed to all parties in the approved list of vendors for the required item as per the database maintained by the purchase department. The advertisement is send to the potential suppliers through UCP, speed post, courier or RAPD or email. The company’s official email id is only be used for all communication with suppliers. The time allowed for receiving quotations against Limited tenders shall be minimum 15 days from the date of release of tender.iii. SINGLE TENDER : Single Tenders are those addressed to a single party and the reasons for the same are to be clearly recorded in the proposal. This can be resorted to only under the following circumstances: The government has channelized the supply only through single source Supplies are from government and semi government agencies and controlled agencies that have a market monopoly for these products (eg. Petrol, Diesel, Iron ore etc.) Proprietary items for which MPR accompanied by proprietary article certificate. Designer justification or customer stipulation for the use of a particular make. Time limit for obtaining offers may be stipulated based on requirement. Single tender case is restricted to financial ceiling of 10 lakhsiv. SPOT TENDER : This is resorted to only for urgent requirements. A team of officers comprising of representatives from Purchase, Finance, and other user departments proceed to the market and obtain spot offers from local vendors after physically verifying and inspecting the goods and obtaining the assurance that the items are offered ex-stock. Offer is also received from established suppliers whenever possible the procurement is made from authorized distributor. The cheapest of the quotation collected by the 22
  23. 23. team is used for the selection of the supplier, if the items are not readily available.The value of the spot tender purchase is limited to Rs.50,000/- To regularize thepurchase, confirmation is issued by the unit chief.2. PURCHASE FROM COLLABORATORSPurchases from the collaborators does not come under tender system, The otherprocedures like MPR, obtaining sanction for the proposal and placement ofpurchase orders are to be followed. The import license if required is obtained by thepurchase department. The requirements in quantity and values in terms of foreignexchange have to be planned well in advance. It is imperative that the items areordered within a reasonable period so that shipment could be effected within thevalidity period of license.3. SUPPLY THROUGH DGS&D RATE CONTRACTThe director of general supplies and disposal (DGS&D) entered into a contract fromvarious items to cater to the requirement of different government organizations. Listof stores on rate contract is published by DGS&D from time to time is used for thepurchase with single quotation.4. PURCHASE THROUGH LONG TERM CONTRACTThe objective of entering into a long term contract is to ensure continuous supply atcompetitive rates. Long term contract should generally be entered into a reasonabletime but not more than two years at a time.5. CASH PURCHASECash purchase should generally be resorted to only in respect of items of smallvalue and emergent requirements. The cash purchase is resorted only in respect ofitems of small value and emergent requirements. Purchase of material up toRs.5000/- at a time is permitted for cash purchase.6. WORLD BANK PROCUREMENTIn respect of any item procured out of the soft loan assistance from World Bank, theprocurement procedures of World Bank shall apply.7. PURCHASE FROM FOREIGN SUPPLIERSThe regular tendering procedure is to be followed for the procurement from foreignsuppliers. Where the custom duty is not payable on imports because of governmentexemption notification or availability of special import license is to be indicated inthe purchase order.8. REPEAT ORDERSRepeat orders are placed I some cases in order to save time and cost. Fresh tendersare not initiated in repeat order procedure. Repeat order is not permitted more than 2years of original purchase. 23
  24. 24. 9. RE-TENDERINGRe-tendering is done in the following cases:-a) When less than 3 tenders are received.b) If the price quoted is significantly high.c) If the purchase committee feels that carter exists between the quoted suppliers.d) Change in material or specification after calling for tender.e) None of the offers meet the desired specificationf) If the vendor withdraw the offer.g) Change in the market demand and taste after tendering processh) L1 back out.TERMS OF PAYMENTFOR INDIGENOUS SUPPLIERS 1. Normal payment period is 60 days. Extra payment period is negotiated with the supplier 2. No offer is accepted with condition of opening the letter of credit. 3. In special cases, part or full payment against the dispatch document or delivering goods 4. Advance payment along with the purchase order is considered as dangerous. 5. In case of controlled items, where supply is controlled by Govt. agencies and the supplier insists the payment in advance, bank guarantee is accepted. 6. The performance of the supplier against the previous order is invariably reviewed.FOR FOREIGN SUPPLIERS 1. Payment is arranged against shipping documents Letter of credit is established only through company’s banks and same is advised to the supplier by the corresponding foreign bank in that area. 2. Advance payment is permitted for items having value less than $2000/-. For advance payment, bank guarantee shall be obtained in case to case basis. 3. The performance of the supplier against the previous order is invariably reviewed.PURCHASE PROPOSALPurchase proposal is expected to contain the following documents1. TECHNICAL SPECIFICATIONThe detailed specification is required to be attached with the purchase proposal.2. COMMERCIAL DETAILS MPR No. Quantity and value Statutory levis Clearing, forwarding and commissioning charges Mode of transport Freight charges 24
  25. 25. Insurance Delivery &Commissioning charges Payment terms Other terms and conditions Warranty Risk of purchase Duration of supply SALES DEPARTMENTINTRODUCTIONSales and servicing activity is a most important function in fulfilling the objectivesof the organization and needs of the customers. It has the activities of selling themachines as per customer satisfaction through its after sales activities.STRUCTURE OF DEPARTMENT Chief of sales Sales Machine Tools Sales Printing Machine Sales Servicin Sales Dispatch Sales Servicin Spares Dispatc Engg. g g h SparesSCOPEThe scope of the process mapped is sales, servicing and dispatch of HMTKalamassery product. 25
  26. 26. OBJECTIVESThe objective is to create and sustain customers in the line with the quantity policyof the company and provide after sales service to achieve total customersatisfaction.HMT Machine Tools Kalamassery has a sales department. The machines aremanufactured only as per the order from the customer. If any order cannot beaccepted, then the company informs within seven days. If it can accept the order,within 10 to 14 days, HMT has to inform the customer that the order is accepted inthe legal format.PROCESSThe customer contacts the Regional office and specifies all his requirements,delivery date and other details. These details are then conveyed to the Salesdepartment and Finance department for appropriateness of design time, design,financial concurrence etc. After the feasibility of the design is confirmed by boththe department, it gets into production process. The finished product, afterinspection and formalities, is dispatched to the customer at the required rate. Thepayment is made to the Sales department. After sending the required commission tothe regional office, sales department sends the rest of the cash to the financialdepartment.ACTIVITIES OF SALES DEPARTMENT Regional and zonal officers of HMT are authorized to quote and obtain order. Clarification sought by regional office are replied Orders are checked and registered’ Details of firm order are forwarded to department. Call for amendments and clarification are obtained from customer. Order acceptance (OA) is prepared for customer orders. Alterations in order acceptance is made through amendments Delivery period of order is decided in depatch production meeting. Allotment of the machine to the customer is done. Follows up for payment or dispatch clearance are made with customer. The payment or dispatch clearance received is intimate to finance department. Details of dispatch are intimated to customer. Order and documents to the order including delivery voucher is put in the customer file.RESPONSIBILITIES OF VARIOUS DIVISIONSSALES ENGINEERINGSubmission of offers for CNC lathes against enquiries and collection of technicallyand commercially clears orders. Execution of orders in coordination with related 26
  27. 27. departments is done by the sale engineering division. DGS&D rates are availablefor basic lathe machines.a) In proposal stage Generation of enquiries in liaison with regional or zonal marketing officer. Preparation and submission of standard tooling machines for CNC Lathes. Interact with customers regarding the offers submitted and provide clarification required on these offer. Follow up offer for the receipt of orders. Scrutiny of orders and obtaining technical and commercial amendments, if any required. Put up sanction for unit chiefs, if the prices accepted vary from the approved prices. Preparation of draft details of firm order for obtaining assembly group numbers or stock numbers from design department. Preparation of tooling layout and follow up for customers approved in case of tooled up officers. Associate with tooling layouts and also incorporate corrections in tooling layout, if any.b) In execution stage Issue details of likely orders Release of tooling layout for detailed toll design Initiate manufacturing or procurement of tooling Correspondence with the marketing officers Coordinate with all concerned sections and technical work up to dispatch of the machinesAPPLICATION ENGINEERINGApplication engineering division is expected to coordinate the various activities ofthe concerned department Coordination with concerned department to ensure availability of the machine. Conducting job trials Conduct pre-sales trials Coordinate for the supply of short supplied items Coordinate with the training centre for training on CNC machinesSALES OFFICE Submission of offers for conventional machines Scrutiny of orders regarding technical and commercial conditions Release of order acceptance Issue of amendments to order acceptance Release of Performa invoice Follow up with marketing or customer for payment dispatched.SERVICING Commissioning and servicing of machines supplied 27
  28. 28. Arranging free replacement spares for rectifying complaints reported during warranty period Monitoring of customer complaints and provide technical advice Furnishing data for quality assurance department.SPARES Receiving the customer enquiries for spare parts Issue order of acceptance against purchase order Issue Performa invoice for the payments Receive payment vouchers for accounts department Collect items against customers order and forward to dispatch sections Follow up of service issue, material issue and operational sequence. Planning of spare parts requirements Correspondence with customer and regional offices for spare parts requests Submission of details of spare parts requirements. Follow up with customers regarding pending payments Processing of HMT regional offices and unit spare transfer indent. Documentation of sectional and customer records.DISPATCH Processing machine and accessories dispatch sheet. Dispatch inspection as per Order of acceptance (OA) Preparation of deliver voucher Physical dispatch of machine and accessories Dispatch of parts or machine with short supply.LIST OF QUALITY DOCUMENTSSALES Work instructions for GPM salesSALES ENGINEERING Work instruction for sales engineering proposal wing Work instruction for execution of purchase order Work instruction for job trialsSERVICING Work instruction for commissioning Work instruction for servicing Work instruction for compilation and upkeep machine filesSPARES Work instruction for spare quotation Work instruction for spare purchase order Work instruction for spare dispatchLIST OF QUALITY RECORDSSALES Check list on enquiry for GPMS 28
  29. 29. Check list for order of acceptance applicable for machines Details for firm order for machines Order of acceptance (OA) Amendment to OA Enquiry resister Order under process register Order acceptance registerSALES ENGINEERING Copy of offer Details of likely oder Purchase order (PO) Details of firm order Amendment to P.O. Order of acceptance Amendment to OA Allotment order for machines Minutes of meeting with customer Departmental order Enquiry RegisterSERVICING Commissioning report to finance department Delivery voucher Service report Servicing activities Activity registerLIST OF FORMATS AVAILABLESALES Order of acceptance Amendment form Details of form order for machines Check list for the order of release of OA applicable for machines Check list on enquiry for GPMsSALES ENGINEERING Details of likely order Details of firm order Departmental order for manufacturing of tooling Allotment orderSERVICING Commissioning report to finance department Delivery voucher for pares Service report Servicing activities 29
  30. 30. SPARES Quotation Order of acceptance Performa invoice Delivery voucher Dispatch information FINANCE DEPARTMENT INTRODUCTION Every organization irrespective of its size relies on its financial health for its survival. The public sector organization HMT has a full fledged finance department in each of its units located at various places. The analysis of financial data is carried out by the finance department. The process of financial analysis is employed to evaluate pas, present and likely future performance of the organization. The financial strength and weakness of the organization is established based on the balance sheet and P&L account prepared by the finance department. STRUCTURE OF DEPARTMENT G M (F) DMF(S) DMF (B) CONCU CASH P/F PA MAIN OBS RRANC (JUN IBS WAGE A/C S E OFFICE S R) 2 A/C S IDMF 1 A/C S 1 A/C S 1 A/C S 1 A/C S 1 A/C S OFFICE A/C S OFFICE OFFICE OFFICE OFFICE OFFICE RS OFFICE R R R R R R 1 STAFF1 JUN 2 STAFF 4 STAFF 2 STAFFOFFICER 30
  31. 31. FUNCTIONS OF FINANCE DEPARTMENTThe major functions of financial department are:- Accounting the transactions carried out by the company and to prepare monthly and annual financial statement. Arrange finance for working capital management requirement, capital addition, and other day to day needs. Working capital management. Liaison with financial institutions and banks. Budgetary control and MISAll finance activities in HMT-MTL, Kalamassery are computerizedVARIOUS SECTIONS OF FINANCE DEPARTMENTIBS (INWARD BILL SECTION)The entire bill that requires payment to be made by the company is sent through theIBS section. It includes purchase bills, expense bills and sundry creditormanagement. The IBS prepares the accounts for the purchase of material and otherexpenditure. Preparation of payment vouchers for the purchase offer, scrutinizingthe purchase order MI slip and supplier invoice are done by this section. IBSprepares the monthly statements of sundry creditors and outstanding expenses andalso makes entries for provisions.OBS (OUTWARD BILL SECTION)The entire bills that required payment towards the company are sent from OBSsection. OBS section carry out debtor’s management, inwards management, invoicegeneration etc. This is mainly done based on the documents received from salesdepartment. OBS interconnects the HMT and customer for payment matter. Fordispatching the product, delivery voucher and other acceptance come to outwardbill section and then to the concerned department. OBS prepare invoice afterverification and then submit it to the dispatch section. The machine is sent to thecustomer at dispatch section only after receiving the invoice from OBS. Thedepartment maintains monthly statement about the debtor realization and provisionsfor sundry debtors.FINANCIAL CONCURRENCE SECTIONPurchase of raw material and incurring of any other expenditure can be done byonly with the concurrence of finance department.PROVIDENT FUND SECTIONThis department takes care of the employee’s provident fund and pension funds.This section arranges the recovery of provident fund from the employee salary. Thepresent statutory minimum recovery is 12 percent. The employees are allowed tocontribute higher quantum voluntarily. The company also contributes 12 percent ofeach employee’s salary into the provident fund account. The amount contributed by 31
  32. 32. the employee and employer along with the interest is paid to the employee at thetime of retirement or resignation or separation of employee.WAGE SECTIONThis section deals with salaries and wages of all personnel. The wages sectionprepares the pay roll every month on the basis of muster roll given by time office.The pay roll preparation process is computerized. This section also deals with theadvances to employees.CASH SECTIONThis section is concerned with all receipts and payments. This section keeps thecash day book and bank day book. The payment vouchers prepared by inward billsection, wages section and other section are sent to the cash section for finalpayment. The salary to the workers and supplementary payroll for all employees areprepared by cash section. When the payments or advance cheques are received fromthe customer against invoice, the same is presented to bank by the cash section.Cash section is responsible for ensuring that the cash credit does not exceed thelimit.MAIN ACCOUNTS SECTIONThis section records the various transactions accounted by other sections. Thissection prepares the final account. Main account section prepares the balance sheetof the unit every year.COST AND MATERIAL SECTIONThis section deals with the keeping of cost data. Price fixation is also done by thissection by making use of costing technique. This section estimates the standard andactual cost of the machine manufactured by the company. This section prepares thedata for selling price of the machine, special accessories and spares. The cost datafor the cost fixation of spare parts is furnished by this section. This sectionmaintains computerized store ledger and stock statements. It also prepare annualbudget on the basis of production programmes, sale programmes and capitalbudgets. This section is responsible for all MIS and section also prepares costmonitoring report.SIGNIFICANT ACCOUNTING POLICIESBASIS OF PREPARATION OF FINANCIAL STATEMENTThe financial statements are prepared as of a going concern, under the historicalcost conventions, on accrual basis of accounting and in accordance with theprovisions of company act 1965, and comply with mandatory Accounting Standardsof India.1. FIXED ASSETSFixed assets are valued at the cost of acquisition or construction or net of credit lessaccumulated depreciation to date. Cost includes direct cost and financing costs 32
  33. 33. related to borrowing attributable to acquisition that are capitalized until the assetsare ready for use. Laid recent free cost from the state government has beennominally valued and incidental expenditure on development of laid is included inthe cost of land.Fixed assets acquired under financial leases are not capitalized. However theamount of lease rentals for the unexpired period of the lease is disclosed ascontingent liability.Items of capital assets with WDV of Rs.1.0 lakh and above which have been retiresfrom active use, are disclosed at lower of book value or net realizable value andshown separately in the fixed asset schedule.2. DEPRECIATIONDepreciation on fixed assets is provided on straight line method, at the rateprescribed in schedule XIV to the companies act, 1956, prorate with reference to thedate of addition or deletion except assets costing less than Rs.5000/- per assetswhich is written off to Rs.1/- in the year of purchase.Depreciation on fixed assets is calculated on prorate basis from the date of suchaddition or as the case may be up to the date on which such assets have been solddiscarded or destroyed. Premium for leasehold land is mortised equally over theperiod of lease.3. INVESTMENTSInvestments are either classified as current or long term. Current investments arecarried at lower of cost and fair value. Long-term investment are carried at cost andprovisions recorded to recognize any decline, other than temporary, in carryingvalue of each investment. Gain or loss in recognized in the year of sale.4. INVENTORIESInventories are valued at lower of cost and net realizable value. The cost ofmaterials is ascertained by adopting weighted average cost method5. DEVELOPMENT AND COMMISSIONINGIn respect of new projects, the pre-product revenue expenditure (includingdepreciation) is collected under the head “Development and commissioningexpenditure” and charged to revenue over four years as follows.(a) In the year of commencement of the commercial product, one fourt of the development and commissioning expenditure on a prorate basis for the period of production in that year; and(b) The balance equally over the next three financial years immediately following.6. DEFERRED REVENUE EXPENDITURETechnical assistance fee (including fee for technical documentation exchangefluctuation difference) paid / payable under foreign collaboration agreement areamortized equally over the duration/ balance duration of the relevant agreement. 33
  34. 34. Expenditure incurred on reconditioning of plant, machinery and equipment isamortized over a technically evaluated period of useful life not exceeding 5 yearswith prorate write off in the initial year.Gratuity, earned leave encashment, settlement allowance and lump sumcompensation paid to employee received under voluntary retirement scheme arewritten off in the year of disbursement of the amount.Expenses incurred in respect of bonds issued for raising funds to meet paymentsmade under the voluntary retirement scheme are amortized proportionally over aperiod of 5 years.7. REVENUE RECOGNITIONSales are set up based on Physical delivery of goods to the customer/ customer’s carrier/ common carrier, directly supported by invoice excise duty paid challan, gate pass, delivery voucher and LR/GR in case of ex-works contracts. LR/GR obtained and endorsed in favour of customer consignee ‘self’ in the case of ‘for’ designation. Sales include excise duty but are net of trade discount and exclude sale tax.8. FOREIGN CURRENCY TRANSACTIONTransactions in foreign currency are recorded at exchange rate(s) prevailing on thedate of transaction or at the forward contract rate(s) wherever applicable. Currentassets and liabilities (other than those related to fixed assets) are restarted at the rateprevailing at the year end or at the forward contract rate(s) wherever applicable anddifference is recognized as income or expenditure in the profit and loss account.Exchange difference arising and restatement of liabilities in foreign currencyrelating to fixed assets is adjusted to the carrying cost of the specific asset.9. BORROWING COSTBorrowing cost are charged to revenue except those incurred as acquisition orconstruction of qualifying asset that necessarily takes substantial time to be readyand until intended use of the assets, that are capitalized to the cost of such assets.10. LEASESLease rentals paid as per contractual obligations in respect of assets taken on leaseare charged to revenue.11. RETIREMENT BENEFITSProvident fund is provided for under a defined benefit scheme. The contributionsare made to the trust administered by the company.Leave encashment is provided for under a defined benefit scheme on actuarialvaluation. 34
  35. 35. Gratuity is provided for, under a defined benefit scheme, to cover eligibleemployee’s liability being determined on actuarial valuation. Annual contributionare made, to the extend required, to a trust constituted for this purpose and remittedto life insurance corporation of India, under which the coverage is limited toRs.50,000/- per eligible employee. The balance provision is being retained in thebooks to meet any additional liability accruing thereon for payment of gratuity.Settlement allowance is provided for under a defined benefit scheme, to covereligible employee, liability being determined on actuarial evaluation.Pension is provided for under a defined benefit scheme, contributions beingadministrated by the government.12. WARRANTYWarranty provision for contractual obligation in respect of machines sold tocustomers is set up on basis of an annual assessment made with reference to pastexperience and is provided in the year of sale.13. SPECIAL TOOLSExpenditure of manufactured or brought out special tools are amortized equallyover a five year period or earlier, if scrapped. Individual items costing less thanRs.750/- are written off fully in the initial year of acquisition/ manufacture.14. RESEARCH AND DEVELOPMENT COSTRevenue expenditure is charged to profit and loss account under natural heads.Capital expenditure is recorded as additional to fixed assets and depreciated overthe estimated lifetime of related asset.Prototypes developed are carried as items of inventory at the lower cost or netrealizable value until sale/transfer/scrapping. Prototypes remaining not disposed offfor a period of five financial years are provisioned for obsolescence in the sixthyear.Contributions to sponsored research and development are amortized equally overthe duration/ balance duration of the programme.15. OTHERSThe amount of Rs. 50,000/- per head received / receivable from L/C in respect ofgratuity claims of employees separated under VRS during the year is accounted asother income.In respect of employees who have separated other than voluntary retirementscheme, the gratuity paid in excess of Rs. 50,000/-, earned leave encashment (ELE),settlement allowance (SA) is debited to the respective provision accounts. Theprovision at the year end for gratuity ELE and SA is restated as per actuarialvaluation done at the year end in compliance with accounting standards 15. in case 35
  36. 36. of ELE and SA, any short or excess provision is charged as expenditure or treatedas provisions no longer requested.SOURCES OF FINANCEThe sources of finance are:- Sale of machines Sale of Spares Sale of Accessories Sale of Scrap Service Job order PUBLIC RELATIONS DEPARTMENTINTRODUCTIONPublic relation department is meant for communicating with the people who wish togather information about the company. Concept of Public Relation as defined byHMT is “P” stands for Performance and “R” stands for Recognition. Hence publicrelation is the art of getting recognition for performance of organization. For thegrowth of the organization, it is necessary to have an efficient public relationsdepartment.STRUCTURE OF THE DEPARTMENT General Manager Deputy General Manager (HRM) Public relations officer Office superintendent Office staff & Receptionist Photo copier mail dispatch operator 36
  37. 37. SECTIONS UNDER PUBLIC RELATIONS DEPARTMENTThe various PR sections includes advertising section, news / information section,graphic/ photo section and grievance section.PUBLICITY SECTIONPublicity section looks after the preparation of publicity materials, itsimplementation and review publicity strategies from time to time.ADVERTISING SECTIONThe advertising section decides the advertising strategies and budget in consultationwith marketing department and advertising agencies. This section study theresponse of various advertisements in print and electronic media, message and theircontentNEWS / INFORMATION DESKNews/information desk is responsible for press coverage, keeping the records ofpress clippings on subjects of interest to the company.GRAPHICS/ PHOTO/ LAYOUT SECTIONGraphics/ photo/ layout section develops designs the visual part of the publicitymaterials/ brochures/ information bulletin and house journal of company.GRIEVANCES SECTIONGrievances section interacts with various publics who are unable to get theirgrievances resolved from the concerned resolved from the concerned department ofthe company in the first instance.FUNCTIONS OF THE PUBLIC RELATIONS DEPARTMENTThe functions of the public relations department emerge out of the change in values,philosophies and attitudes of the top management in the company. In the past,public relations department had meant for only two major functions, namely, publicopinion and communication. In the modern era, many functions, such as evaluation,research, and counseling are associated with the public relations department1. EVALUATIONThe increase in the risk factors and the involvement of high cost in the activitiesmade essential to evaluate the various programme from time to time. The evaluationnot only ensures the achievement of its objectives but also increases the intensity ofthe impact of the programme. The evaluating programmes are related to building ofcorporate image, social advertising, building of favourable customer attitudestowards the company, building of sympathetic attitudes towards the companyamong publics. 37
  38. 38. 2. RESEARCH Research carried out by the public relations department enhances the credibility of the company. The public relation department conducts research on the performance of the various groups in the company. 3. COUNSELING Counseling is an important function of public relations department, which helps to develop long lasting relationship with the publics and associating firms. The objectives of counseling are to understand the basic grievances of the customer, exchange important information about the company, invite the suggestions to resolve the grievances and to explain why some of the suggestions are not feasible for implementation. Counseling is the effective method of understanding the trends of various publics. HUMAN RESOURCES DEPARTMENT INTRODUCTION HMT Ltd has around 11,000 employees in the corporate level. The employees are divided into two groups, PS grade and WG grade employees in the shop floor and in various offices the employees include trainees recruited into various grades. In addition, there are Directors, a Chairman and MD appointed by the Govt. of India. The total strength of employees in HMT MTL, Kalamassery is now 499 compared to 3000 when it was started. This is due to VRS policy actively followed by the company. At present, 202 officers, 135 direct workmen and 162 indirect workers are working in HMT-MTL at Kalamssery. STRUCTURE OF THE DEPARTMENT Deputy General Manager (HR) Asst. General Manager (HRM)Manager training Sr. Medical Sr. Engineer Sr. Engineer Officer (training) (estate)Dy. Manager (Welfare) Officer IR Dy. Engineer Dy. Engineer Officer PR 38
  39. 39. FUNCTIONS OF HUMAN RESOURCES DEPARTMENTThe major functions performed by the department are industrial relations, training,safety & securities, personal activities and welfare activities1. INDUSTRIAL RELATIONS:The company has been enjoying peaceful industrial atmosphere for as long time.The company has the cooperation of employees in almost all the activities.Whenever conflict occurs it is the duty of this department to look into the mattersand take corrective action. The IR Officer acts as a liaison with legal advisors.In the early days there were only one recognized union in HMT and it was CITU.Currently there exist four major trade unions. They’re HMT Employees Union- this was affiliated to CITU. It is the 1st and largest union in the company. HMT Employees Congress- this is also a recognized union affiliated to INTUC HMT Workers Union HMT employee federationThe G.M. of the unit meets the trade union leaders once in every month to listen totheir suggestions and complaints and to appraise the overall situation of thecompany.It is natural that the interest of management and trade union differs on certainissues. In an industry the maximum production can be achieved only by securingthe confidence and cooperation of the trade union leaders and utilizing them in apositive way.2 TRAININGHMT gives very high priority to human resource development through training andorganizational activities. The company looks after training needs of employeesthrough their life in the origin. They also conduct customer training programmes.The programmes are sandwiched with lecture sessions followed by interactingsessions guided by various expert faculties. The medium of instruction is English.There are mainly four types of training programmes, namely, employee training,customer training, statutory training and student guidance programmea. Employee trainingInduction: Duration of this programme is one year. Induction is given to the peopleselected through recruitment. If the person successfully completes induction, he willbe posted in suitable area. Otherwise give further training.In plant training: It is the training given inside the plant or hands on training. Itmay be given to the employees who are transferred from different plants in differentplaces. 39
  40. 40. Multi-skill training: This is provided as and when it is recruited. This is given onlyfor direct workers on the basis of recommendations of department head. Duration isthree months. But it can be extended beyond three months if required. Duringtraining programme workers are considered as indirect workers.Periodical awareness training: This training is given to supervisor and workercategory employees depending on need and nature of work. Employees for trainingmay be selected by head of the department.b. Customer training:It is given to the customers for the optimum utilization of their products. The mainproducts of the company are machine tools. There are two types of machine tools-conventional lathe & CNC lathes.CNC operation training: It is maintenance and operation training programme. Itsduration is one week. Free training programme is given to a person per machine. Itis given in four areas: Computer programming CNC programming Metallic and hydraulic programming Electric and electrolytic maintainingA nominal amount is charged from all the candidates. Training calendar is preparedbefore March every year. Calendar is sent to customers through marketing officesand sales offices. Feed back is collected at the end of the programme. Certificate isprovided for training programme.Printing machine training: The training includes usage and safety measures to beadopted. It is also for one week.Product orientation training: It is given to the marketing executives, salesexecutives and service engineers. It is intended to give awareness about newproducts and also to give awareness about the new properties added to the product.c. Statutory training (apprenticeship training):It is given as per the guidelines ministry of labour and ministry of industry.Graduate training: It is given to B. Tech graduates with mechanical andproduction. It extends to a period of one yearTechnician apprenticeship: It is given to Diploma holders with mechanical, civil,electrical, and electronics back ground. Stipend is same as that of graduate training.Vocational training: Office apprenticeship, medical lab technician etc are comingunder this category. 40
  41. 41. Trade apprentice ship: It is given to those who have passed SSLC, securing 1stclass. For this training there is an entrance examination and interview. After thattrades are fixed (trades are fitter, milling, turning, grinding).Also apprenticeships training for ITA holders are conducted by HMT. The companyalso gives training for the operation of CNC lathes, for which duration is 6 months.It is provided to six persons at a time and a negligible amount is charged for thesame. Also there is student guidance programming.SAFETY AND SECURITY:Safety: Company adopts statutory measures for ensuring safety. Sixty fireextinguishers are placed at different places inside the organization. The companyconducts periodical medical checkup for employees in certain areas likeelectroplating which affect the health of the employees. A welfare checkup is givingto employees in foundry periodically.In this department activities are carried out according to safety standards. Thesestandards are exhibited at different places inside the organization. The employeesare given several safety equipments like leather gloves, PVC gloves, helmets, fireshield, dust mask, welder shield, safety shoes etc. If any accident occurs in thecompany, the matter will be informed to the safety department within 24 hours bythe supervisors through an accident intimation form. This form is prepared intriplicate- one copy to medical department, one copy to the safety department andthe third to the concerned department. The supervisor should inform to the ESIdepartment if the injured employee have ESI. All the accidents in the factory shouldbe communicated to the factory inspector, if the employees are disabled for morethan 48 hours.There is a safety committee for discussing the problems relating to the safety ofworkers. The company maintains a pollution free environment inside and outside itspremises. However certain areas such as foundry, chimney, electroplatingdepartment etc. are under the pollution control board. They undertake the sampleperiodically from the areas and check whether it is restricted to permissible level.Security: The main function of the security department is to protect the company’sproperty. Gate pass is too provided for all the employees and also to those whoenter the company for various purposes. There is separate entry for men andmaterials. This department undertakes patrolling day & night. It is the duty ofsecurity department to flag on the national flag in the morning and flag off in theevening.At present, nine permanent staffs are in the department. Most of them are ex-servicemen. Twenty employees in the department are working on contract basis. They arekept in the security department as gate keepers. The main duty of this department isto check every employee and restrict entrance for unrecognized persons. Theregisters maintained in the security department are: Material out going register/ white pass :sake of materials i. Gate pass 1 – the sending of machinery, spare parts within India. 41
  42. 42. ii. Gate pass 2 – the material is sent to other country. Material incoming register: the material coming into the companies are recorded here. The security will check quantity, supplier name etc. Tool register: temporary going of tools, to different parts in the company. It contains date, time, quantity etc. In over time record contains records who have worked over time.PERSONNEL ACTIVITIES:This includes all the personnel administration activities in the company, thepersonnel function is carried out according to the policy framed by manual. Some ofthe personnel functions in the company are:i) HRM grievance procedure: The objective of grievance procedure is to provide asettlement of grievances of officers and to adopt measures so as to ensureexpeditions. Settlement of grievance leads to increased satisfaction on the job andresults in improved productivity and efficiency in the organization. The variousstages in the submission of grievance are as follows. Each unit has a grievance committee consisting of production chief account chief and personnel chief of the unit. The personnel chief being convener of the committee. The aggrieved person should submit his grievance in writing to the convener of the grievance committee. The convener should collect all the related relevant data regarding the sound grievance. Grievance committee then calls the assigned officer with in fifteen days of the receipt of the grievance and discuss with him. Within a week the grievance committee should record and submit its findings. The findings of grievance committee should be communicated to the assigned officer by the convener with a copy to the department head for taking necessary action arising out of the findings of the grievance committee.If the aggrieved officer is not satisfactory with the findings of the grievancecommittee, he may prefer an appeal to the Unit Chief. The Unit Chief shouldconvey his decision within fifteen days of the receipt of the appeal. The decision ofthe Unit Chief is final.ii) Recruitment: Procedure for recruitment of management trainees in engineeringand other professional areas: The recruitment in these areas will be made by theCorporate Personnel Directorate.iii) Induction policy: The induction program is for a period of one year. Thefunctional relationship between corporate HRD divisions with management traineesduring the induction program continues for the whole year. The purpose of thisinduction program is to facilitate the transition of the trainees from the campus tothe industry.iv) Promotion policy: There shall be two systems of promotion within the executivepositions in HMT, namely, promotion within the group and promotion between the 42
  43. 43. groups. All promotions are made in accordance with this promotion policy whichwill be from one scale of pay to the next without skipping any scale of pay.The promotion norms shall consist of two parts Eligibility factors, which include a qualifying period, qualification norms attendance conduct prescribed standards in Performance Appraisal. Suitability factors, which include an interview and assessment of the potential of the executives in his own channel or for a post other than in his own channel of promotion.Promotion within the groups: a. Unit cadre: The Competent Authority on the recommendations of Directorate will make promotions within the groups. b. Corporate cadre: All promotions in the Corporate i.e. group V shall be subject to availability of vacancies and the organization need to fulfill them.Promotion between the groups:These promotions shall be made in accordance with the above eligibility andsuitability factors and will be based on the availability of vacancies and theorganizational need to fill up such vacancies. In considering the promotion of anexecutive from 1 group to another, merit will be the primary consideration whichwill include an assessment of the executive’s potential and aptitude for highermanagerial position.Executive who have outstanding reports for three consecutive years shall beconsidered for promotion in accordance with qualifying periods prescribed foroutstanding category. The outstanding ratings of these executives shall be reviewedin detail before such consideration by the respective performance reviewcommittees constituted for that purpose under the Performance Appraisal system.The low performers who fail to fulfill the prescribe eligibility norms for threesuccessive years shall be counseled by the committees. This is in addition to thecounseling done by their respective reporting officers as laid down in the appraisalsystem. The committee may also recommend developmental training and change ofjob to enable such low performers to improve their performance.v) Performance appraisal system: The appraisal will consist of the followingstages: Appraisal rating of the employee on i. Job performance factors- job knowledge, quality of work, target fulfillment, costtime control, and safety consciousness. ii. Managerial ability factors- planning & organizing, problem analysis and decision, inter personal skills, communication skills, self motivation, commitment, responsiveness to change, developing subordinates, management of human resource, positive discipline. 43
  44. 44. General comments and overall assessment of developmental needs of appraise leading to final assessment. Review discussion by appraisal Follow up action to the taken Review discussion b/w appraises and after appraising the employee is complete both by reporting and review Voluntary retirement scheme: The scheme is introduced to cut down themanpower strength and reach an optimum level and also provide monetary benefitto employees. The scheme is not applicable for professionally qualified employeeslike graduate employees and professionally in finance, HRM, marketing.Procedure for VRS: Employees opting for the scheme are to apply through properchannel to the HRM chief. The HRM department verifies the particulars andforwards it to recommending committees. After recommendation it is permitted.Employees are permitted to retire on any day of the shift.vii) Participative management: In this scheme the participation flow from thegrass- root to a corporate level through various stratified councils, namely, microlevel councils and macro level councils.Micro level councils: Micro level councils include workgroup council and unitmanagement councilWork group council: It is functioning at work unit level. Chairman is the officersupervisor of the work group and other employees in the work group are members.This council shall provide a total and effective participation at the grass root level. Sectional management council – chairman is the sectional head and members are the officers supervisors. This council shall review the progress of the work group councils functioning under their control. They shall discuss various problems of their section and try to solve them. Department management council – departmental head is the chairman and all the sectional heads are the members. This council shall review the suggestions given by the sectional management council and try to solve the problem. Link pin council: Link pin council consist of unit chief, president or general secretary of the recognized union, President of the officer’s association, Production chief Finance chief, Personal chief. This council shall oversee the functioning of all the above councils and monitor their activities. This council shall play the role of TROUBLE – SHOOTER and COORDINATOR.Unit management council: Unit management council consists of unit chief anddepartmental heads.Periodicity of meetings: Meetings will be held at least once a month. The progressreports shall be submitted by the chairman of the council to the chairman of the next 44
  45. 45. higher council on a monthly basis. This council may plan the strategies forcoordinating the activities of the other councils.Macro level council: The macro level councils is the joint management council. Thecouncil consists of Chairman & MD, Functional directors, Business group chiefs,Personal chiefs of units, worker’s representative, Officer’s representative, GM(HRD). Meetings will be held at least once in an year. Periodicity Welfareactivities:WELFARE MEASURESWelfare measures include statutory welfare measures and non- statutory welfaremeasures.Statutory welfare measures: Washing facilities – separate washing facilities for men and women, it is easily accessible to the work place. Storing and drying of clothes. Sitting facilities First aid and ambulance – dispensary with all medical facilities and ambulance. Canteen Rest room & lunch room – there is a home meal section attached to the canteen. Rooms are provided for the purpose. Welfare officer – as per factories act, there are 1 welfare officerNon statutory welfare measures: Uniform – two sets of uniforms are supplied to eligible work men excluding foundry. For the foundry workers 4 sets of uniforms are provided. For administrative 2 sets of uniform are provided. Housing - Subsidized quarters are provided for the benefit of the employees. 240 quarters under the SIHS for workers. In addition there are 32 single quarters and 48 multi quarters. Transport facilities - Company buses and buses run on contract basis are plying through various routes for the benefit of all the employees. A certain amount based on the salary is deducted every month from the salary wages of the bus pass holder. Recreational facilities: Social club, arts and dramatic club, sports club, educational society Medical benefit –For those who are not covered by the ESI act, there is a medical benefit scheme. Under the scheme families are also eligible for treatment. Treatment can be had from the company’s dispensary or any provided hospital or company’s panel of doctors and any other government hospitals. Medical expenses are reimbursed by the company as per the scheme. 45
  46. 46. HMT Employees Consumer Cooperative Stores – The society has been formed for the benefits HMT employees and is in operation since 1965. Employees are eligible to apply for membership on payment of Rs. 10/- share. On request any number of shares can be allotted. It is managed by a committee consisting of nine members out of which six are elected and three (President, Treasurer and a member) are management nominees society at present is running a provision store, treasure store and a fare price shop. PLANT SERVICES INTRODUCTION Plant services department is responsible for maintaining the machines and equipments of the unit in optimum condition of performance so as to make them available for production. The plat services department is responsible for the erection and commissioning of the machines in the plant. The department is also responsible for the electrical power distribution of the entire factory complex. The department looks after the internal transport functions and house keeping activities inside the factory. STRUCTURE OF DEPARTMENT JGM (PS) DCE (Electrical) DCE (Mechanical) Sr. Sr. Sr. Sr. Sr.Engineer Engineer Engineer Engineer Engineer Dy. Dy. Engineer Engineer WG WG WG WG SCOPE Erection, commissioning, repair, maintenance, reconditioning, retrofitting and preventive maintenance of all the machines and equipment used for production in the MTD and PMD plants and training center. 46
  47. 47. Maintenance of the eot cranes, jib cranes, air compressors and a/c units in the MTD and PMD plants. Upkeep of R&M stores and spare parts planning. House keeping activities in the shop floors. Materials movement in the shop floors and maintenance of internal transport vehicles and equipment. Maintenance of power supply to the entire factory complex. Maintenance of 66 kV sub-station, switchgear, power transformers, and the entire distribution system. Maintenance of supply distribution in colony, pump house. Maintenance of internal telephone exchange and the communication system. To arrange and co-ordinate contract works in connection with any of the above activities.OBJECTIVESTo maintain the plant, machines and equipments in optimum conditions ofperformance ensuring availability for production. The plant services department setsits measurable quality objectives for every year. These objectives ensure that themachines and equipments are well maintained to meet the requirements of thecustomers. The quality objectives are communicated to all the employees in thedepartment by displaying them in the key areas of the factory.RESPONSIBILITIES OF OFFICERSHODHead of Plant Services Department has to ensure Administration Electrical Maintenance for MTD Mechanical Maintenance Internal Transport PMD MaintenanceAlso ensure safety aspects as per Factories Act, Factory Rules and Electricity Rulesin respect of Plant and Machinery.SECTION IN-CHARGE, MECHANICAL Erection, commissioning and maintenance of all machines and equipment, cranes, air compressors and A/c Plant in the factory of MTK and PMD. Preventive maintenance of all critical machines and equipment under his control. Reconditioning of all critical machines and equipment. Testing of EOT cranes and compressors as per factory regulations. Maintenance planning. Identifying training needs of employees under his control. Lubrication services. House keeping functions in the factory. Ensuring compliance with ISO 9001 requirements of the department. 47
  48. 48. SECTION IN-CHARGE, ELECTRICAL Maintenance of Power supply system in 66KV Sub station. MTK and PMD Plants and HMT Colony. Erection, commissioning and maintenance of electrical portion in machines and equipment and operations of all electrical equipment. Preventive maintenance (Electrical) of all critical machines and equipment in MTK and PMD. Reconditioning (Electrical) of all critical machines and equipment. Safety of all electrical equipment as per factory rules and electricity rules. Internal communication systems. Internal Transport vehicle electrical repair. Ensuring compliance to ISO 9001 standards of all the activities in his section.PROCESS CHART FOR BREAKDOWN MAINTENANCE Receipt of Requisition for machine repair Yes Analyze the problem in Is work too detail and take expert complex? opinion from other Enter in daily work departments, if required register and allot work No according to priority Refer manual / drawing consult supervisor Is work simple? No Hire outside experts, if Yes required Spares Yes Spares No required? available? Yes No Yes Spares repairable? Replace spare Rectify Defects No Manufacture / procure Machine idle closing spare after checking and acceptance Repair the spare and assemble Entry of major break Review of major works in downs in machine FORTNIGHTLY history MEETING for process improvement 48
  49. 49. QUALITY CONTROL & INSPECTIONINTRODUCTIONQuality control in its simplest term refers to control of quality during themanufacture. Both quality control and inspection are envisaged to assure the qualityin entire area of production process. Inspection is a function of determining thequality. When quality becomes effective, the need for inspection decreases. Hence,the quality control determines the cause of variation in the characteristics ofproducts and gives solutions by which these variations can be controlled. It iseconomical in its purpose, objective in its procedure, dynamic in its operation andhelpful in its treatment.STRUCTURE OF DEPARTMENT JGM (Q) DGM(Q) DCE DCE DCE DCE (MI) (Q) (IDI) (QP) STQ SPQ PS PS PS PS PS WS WG WG WGSCOPEThe quality control department is mapped to execute at the areas of incomingmaterials acceptance, sub-contract components acceptance, manufacturing process,assembly in process, calibration and certification of measuring instruments both inhouse and external, calibration and certification of all out going products of the unit.The department also conducts systematic analysis of feedbacks from both internal 49