An Organisation study at HIGHTEMP FURNACES LTD, BANGALORE
1. AN ORGANISATION STUDY
AT
“HIGHTEMP FURNACES LTD, BANGALORE”
An Internship Report submitted in partial fulfillment of the requirement for the
Award of the Degree of
Master of Commerce (Finance & Accounting)
Of
BANGALORE UNIVERSITY
By
JENNIFER DICKENS
Register no: 15KSCFCO12
Under the Guidance of
External Guide Internal Guide
Mr.Ravindra Kammar Mr. Arshad
General Manager Faculty member
INDIAN ACADEMY
CENTRE FOR RESEARCH AND PG STUDIES
HENNUR CROSS, HENNUR MAIN ROAD, BANGALORE-560043
2016-2017
2. INDIAN ACADEMY
CENTRE FOR RESEARCH AND PG STUDIES
Bangalore-560043
Ms. Jennifer Dickens
III SEMESTER, MCOM (F&A)
Register no: 15KSCFC012
Indian Academy Degree College
Bangalore-560043
DECLARATION
I hereby declare that this Internship Report entitled “An Organization Study at “High Temp
Furnaces Limited, Bangalore” submitted to the Bangalore University in partial fulfillment of the
requirements of Master of Commerce (F&A) program is a bonafide work carried by me, under the
guidance of Mr.ARSHAD . This has not been previously submitted to any other university or institution
for the award of any Degree/Diploma/Certificate or published any time before.
Date: 25/10/2016 Signature of the Student
Place: Bangalore
3. INDIAN ACADEMY
CENTRE FOR RESEARCH AND PG STUDIES
Bangalore-560043
Mr. Arshad Dr. E. Jerome Xavier
Faculty and the Guide Principle
CERTIFICATE
This is to certify that Ms. JENNIFER DICKENS (Reg No :15KSCFC012) studying in III Semester,
M.COM (F&A) at Indian Academy Degree College has successfully undergone Internship Project at
High Temp Furnaces LTD, Bangalore and he has prepared a report entitled “An Organization Study
on HIGH TEMP FURNACES LTD, BANGALORE ” under the guidance of Mr.ARSHAD, Faculty
Member, Indian Academy.
This is submitted to Bangalore University in partial fulfillment of the requirements of the
University for the Award of MASTER OF COMMERCE (F&A) Degree for the academic year 2016-
2017.
Date: 25/10/2016
Place: Bangalore
Signature of the Guide Signature of the Principal
4. ACKNOWLWDGEMENT
I am glad to use the opportunity to express my gratitude to all of them who are connected in
bringing out this report.
I wish to express my special thanks to our Chairman, Dr. T. SOMASEKHAR and Principal, DR.
E. JEROME XAVIER and BANGALORE UNIVERSITY for giving me an opportunity to do this project.
I express my heartfelt thanks to my HOD Mr. Jaffer C Mohammad and my guide Mr. Arshad,
Indian Academy, for his valuable advice, guidance and support to complete this Project successfully.
I sincerely thank the General Manager and staff of various departments of High Temp Furnace
Limited, for their valuable co-operation throughout the project.
I am particularly grateful to Mr.Ravindra Kammar, General Manager, for giving me an
opportunity to do this internship and guiding me throughout the internship program.
I am also thankful to my family, friends and all those who have helped me directly and indirectly
in bringing out this report successfully.
Date: 25/10/2016 Ms. Jennifer Dickens
Place: Bangalore REG NO: 15KSCFC012
5. Sr. No CONTENT PAGE NO
1. INTRODUCTION 6
2. INDUSTRY PROFILE 12
3. COMPANY PROFILE 14
4. ORGANISATION STRUCTURE 40
5. SWOT ANALYSIS 68
6. FINDINGS, SUGGESTIONS
AND CONCLUSION
72
7. BIBLIOGRAPHY 76
6. An Organisation study at HighTemp Furnaces Ltd
6
CHAPTER 1
INTRODUCTION
An organization is a tool used by people to coordinate their actions to obtain
something they desire or value, which is to achieve their goals. Value creation takes
place at three stages: input, conversion and output. The way an organization chooses
and obtains the inputs it needs to produce goods and services determines how much
value the organization creates at the input stage. The amount of value the organization
creates is a function of the quality of skills, including the ability to learn from and to
respond to the environment. An organization study is the systematic study and careful
application of knowledge about how people - as individuals and as groups - act within
organizations
Incorporated in 1971 at Mumbai, HTFL has witnessed a steady growth over the
years - from being a builder of small ovens and laboratory furnaces to become one of
India‟s best known manufacturers of Heat Treat Furnaces. What sets us apart is the fact
that HTFL offers both Atmospheric Heat Treatment Furnace Systems and Commercial
Heat Treatment. Powered by the largest Commercial Heat Treatment facility in India,
the company services address the varied requirements of a global clientele that
includes renowned Indian and foreign multinationals.
HTFL has a comprehensive furnace manufacturing facility - spread over a 75,000
sq ft area - designed to conceptualize and build advanced atmospheric heat treatment
furnaces. The Commercial Heat Treatment Divisions, located at the industrial clusters of
Delhi, Pune, Chennai and Bangalore, command a total area of 598,950 sq ft.
Regular quality audits of products & services, sustained emphasis to guarantee
consistent quality, compliance to meet customer & statutory requirements have enabled
the company to exceed expectations and ensure customer delight.
7. An Organisation study at HighTemp Furnaces Ltd
7
Objectives of study
To familiarize with a business organization to relate theory with practice.
To understand the organisation culture and structure.
To learn about different departments and its functions.
To understand the hierarchy of the organisation.
To familiarize with the corporate world.
Scope of study
To understand about the company, its core capabilities, organisation structure,
departments. The study also covers the approach of the company towards different
requirements of the clients and how they provide solutions.
Research Methodology
Research Methodology implies more than simply the methods intended to collect data.
It is important to be careful while collecting data which is useful for the study as it
directly affects the findings of the study.
To study a big organization like High Temp Furnaces LTD, I have used two methods
of data collection: - Primary data and Secondary data collection methods.
Primary Data
Primary Data is information that are collected specifically for the purpose of the
research project. It is specifically tailored to the research needs. By interviewing,
observation and interaction with the managers and employees of the company.
Secondary Data
Secondary data are the data that are collected by some other people for some
other purposes and currently available for study. Secondary data used were
Company annual report like balance sheet and profit and loss account.
8. An Organisation study at HighTemp Furnaces Ltd
8
Other company reports like HR reports of employees, memorandum of
association, circulars or notices of company etc.
Limitations
The study is confined to only one company.
As the managers are busy in their daily schedules; it was not possible for me to
spend more time in interaction with them.
Some core data could not be collected due to confidentiality policies of the
company.
Time spent with some knowledgeable and experienced employees was limited
as they were busy with their working schedules.
About Internship
An internship is an opportunity offered by an employer to potential employees,
called interns, to work at a firm for a fixed, limited period of time. Interns are
usually undergraduates or students, and most internships last for any length of
time between one week and 12 months.
Internships (also called "placements", "work placements" or "industrial
placements") may be part-time or full-time. They are usually part-time if offered
during a university semester and full-time if offered during the summer, winter or
Easter holidays, when they typically last 4-12 weeks. Placements are usually full-
time, and take place irrespective of term time or holiday time.
Internships offer students a period of practical experience in the industry relating
to their field of study. This experience is valuable to students as a means of
allowing them to experience how their studies are applied in the "real world", and
as work experience that can be highly attractive to potential employers on a
candidate's CV.
9. An Organisation study at HighTemp Furnaces Ltd
9
Interns are usually university students, or university graduates who have not yet
found employment. Interns are less frequently college students (under 18 or older
“career changers”.
An intern is someone who works in a temporary position for an employer that
operates in an industry they are interested in working in. Unlike conventional
employment, internships have an emphasis on training, rather than employment
itself.
An internship provides a great opportunity for prospective employees to gain
experience in a particular field or industry, determine if they have an interest in a
particular career, create a network of contacts, or gain university module credits.
Interns may also have the possibility of putting themselves forward for
forthcoming opportunities for paid work, during their internship.
Purpose of Internship
The purpose of Industrial Training is to expose students to real work of
environment experience and at the same time, to gain the knowledge through
hands on observation and job execution. From the industrial training, the
students will also develop skills in work ethics, communication, management and
others. Moreover, this practical training program allows students to relate
theoretical knowledge with its application in the manufacturing industry. The
objectives of industrial training are:
To provide students the opportunity to test their interest in a particular career
before permanent commitments are made.
To develop skills in the application of theory to practical work situations.
To develop skills and techniques directly applicable to their careers.
Internships will increase a student's sense of responsibility and good work habits.
10. An Organisation study at HighTemp Furnaces Ltd
10
To expose students to real work environment experience gain knowledge in
writing report in technical works/projects.
Internship students will have higher levels of academic performance.
Internship programs will increase student earning potential upon graduation.
To build the strength, teamwork spirit and self-confidence in students life.
To enhance the ability to improve students creativity skills and sharing ideas.
To build a good communication skill with group of workers and learn to learn
proper behavior of corporate life in industrial sector.
The student will be able instilled with good moral values such as
responsibility, commitment and trustworthy during their training.
Benefits of Internship
Take advantage of low-cost labor. Interns are an inexpensive resource. Their
salaries are significantly lower than staff employees, and you aren't obligated to
pay unemployment or a severance package should you not hire them on fulltime.
Moreover, while their wage requirements are modest, they're among the most
highly motivated members of the workforce.
Find free-of-charge. Internships.com allows you to post your employer profile
completely free of charge. This means you get extensive exposure to the top
colleges and candidates without putting a dent in your recruiting budget.
Give back to the community. As a small business, you likely rely on
community support. Creating an internship program is an excellent way to give
back. Hiring interns not only helps students in your community get started; it
enhances the local workforce as a whole.
Support students. Internships provide students numerous perks: They gain
experience, develop skills, make connections, strengthen their resumes, learn
about a field, and assess their interest and abilities.
Benefit your small business. When looking for fulltime work, the top talent
often goes for big-name businesses. But when seeking internships, learning is
11. An Organisation study at HighTemp Furnaces Ltd
11
the leading draw. Many candidates feel they'll get more hands-on training, real
experience, and mentoring opportunities with smaller organizations.
12. An Organisation study at HighTemp Furnaces Ltd
12
CHAPTER 2
INDUSTRY PROFILE
About Manufacturing Industry:
An industry which has undergone a radical shift in its paradigm thinking is the Indian
machine tool industry which is now recognized as a provider of low cost high quality
lean manufacturing solutions. The industry supports all its users to enhance productivity
as well as improve competitiveness, for the betterment of the final customer. Being an
integral sector, growth of the machine tool industry has an immense bearing on the
entire economy, especially India‟s manufacturing industry. It is even more crucial for the
development of the country‟s automobile industry.
India is the 18th largest producer of machine tools in the world. The Machine Tools
industry consists of about 450 manufacturing units, of which about 150 are in the
organized sector and international companies like DMG & Makino amongst others
which import machines for selling. The top 10 manufacturers accounts for almost 70%
of the total output. Domestic manufacturers account for about 45% of the total Indian
machine tool market.
The Indian Manufacturing Industry has the potential to elevate much of the Indian
population above poverty by shifting the majority of the workforce out of low-wage
agriculture.
Manufacturing sector is the backbone of any economy. It fuels growth, productivity,
employment and strengthens agriculture and service sectors. Astronomical growth in
worldwide distribution systems and IT, coupled with opening of trade barriers, has led to
stupendous growth of global manufacturing networks, designed to take advantage of
low-waged yet efficient work force of India. „Indian Manufacturing‟ sector is broadly
divided into-
13. An Organisation study at HighTemp Furnaces Ltd
13
Capital Goods & Engineering.
Chemicals, Petroleum, Chemicals & Fertilizers.
Packaging
Consumer non-durables.
Electronics & IT Hardware.
Gems & Jewellery.
Leather & Leather Products.
Mining.
Steel & non-Ferrous Metals.
Textiles & Apparels.
Water Equipment.
India‟s Manufacturing Industry has the potential to touch US$ 1 trillion by 2025.
There is potential for the industry to account for 25-30 percent of the country‟s GDP
and create up to 90 million domestic jobs by 2025.
The Government of India has an ambitious plan to locally manufacture as many as
181 products. The move could help infrastructure sectors such as power, oil & gas,
and automobile manufacturing that require large capital expenditure and revive the
Rs. 185000 crore (US$ 27.14 billion) Indian capital goods business.
India is an attractive hub for foreign investments in the manufacturing sector.
Several mobile phone, luxury and automobile brands, among others, have set up or
are looking to establish their manufacturing bases in the country. With impetus on
developing industrial corridors and smart cities, the government aims to ensure
holistic development of the nation. The corridors would further assist in integrating,
monitoring and developing a favourable environment for the industrial development
and will promote advance practices in manufacturing.
14. An Organisation study at HighTemp Furnaces Ltd
14
CHAPTER 3
COMPANY PROFILE
Incorporated in 1970 at Mumbai, High Temp Furnaces LTD, now a subsidiary of
Dowa Thermotech Company LTD, Japan has witnessed steady growth over the years.
From being a builder of small ovens and laboratory furnaces to become one of the
India‟s best known manufacturers of the Heat treat Furnaces. What sets the company
apart is the fact that HIGHTEMP offers both atmospheric Heat Treatment Furnace
Systems and commercial Heat Treatment.
COMPANY OVERVIEW:
Established in 1970 High Temp Furnaces Ltd has managed to grow as one of the
leading furnace manufacturers in India as well as abroad. High Temp Furnaces as
an organization has come a long way before it flourished as a prominent furnace
manufacturer.
15. An Organisation study at HighTemp Furnaces Ltd
15
It was founded by Mr. Balakrishna and Gopal Mahadevan. Initially HTFL was
registered as a private limited company with very less Authorized capital. Initial
capital was raised as 100rs per share. But after 10 years of activity HTFL had
managed to achieve massive turnover which crossed the limits easily because of
why it became a Limited company.
On 17th
Jan 1971 HTFL was registered with the Income Tax Department. Initially
HTFL dealt with the manufacturing of ovens, electrical heaters etc. They first started
serving bakeries with large ovens according to the design they gave and according
to their particular specifications. They were widely accepted and slowly the demand
started to go up.
In 1986 according to the rising demand, company started manufacturing furnaces.
The company was just manufacturing the furnaces according to the specific
requirements given by the customer (Tailor made). 10 years down the line the
company has managed to manufacture big furnaces according to the customer‟s
specifications.
Company had earned goodwill in the period of 10 years because of which the
company started receiving orders from abroad. In 1996 HTFL carried out its first
export as the customer being USA. Then the company became regular in the export
market and followed the method of manufacturing according to the customer‟s
requirements. The company was very particular in making sure that the product was
damage free and as a result an employee from the company would go to the buyer
country and stays there for one year to make sure that the product is installed
properly and it works efficiently.
Then the Japanese manufacturing giant Dowa and TTI group came forward to have
a joint venture by participating in the equity and giving their technical logo or
services.
16. An Organisation study at HighTemp Furnaces Ltd
16
Then in 1996 the domestic automobile industries started approaching the company
with the requirements of heat treatment for their spare parts which is manufactured.
Then the company‟s engineers started manufacturing furnaces according to their
requirements.
Apparently the company started manufacturing for commercial heat treatment
purpose. The first branch of the company was set in Pune because of the already
established automobile industry over there. The second branch was started in
Gurgeon, Haryana because of liberalisation through which the company saw huge
opportunity over there.
Because the company could not meet the huge demand that arose across South
India, it had to open its third branch in Chennai. Then the company also had to deal
with the massive demand that arose for furnaces because of which the branch in
Peenya Bangalore was not enough. Then another branch was established in
Nelamangala in 2006, only for the manufacturing of furnaces.
Then 2 other branches were started in Yeshwanthpur and Bidadi which were solely
established for the manufacturing of the furnaces.
HTFL exclusively does the Heat Treatment for BOSCH and other major companies
in Karnataka.
Profile of Hightemp Furnaces Limited:
Company Name HIGHTEMP FURNACE LIMITED
Head Office 1C, 2nd
Phase, Peenya Industrial Area,
Bangalore – 560058, Karnataka, India
Managing Director M.Gopal
17. An Organisation study at HighTemp Furnaces Ltd
17
Performance
HTFL has continued to maximize the strong customer base for industrial
furnaces and for commercial heat treatment by maintaining the impeachable track
record of quality and delivery efficiency which resulted in comparatively better strength
in revenue considering the effect of recessionary trends in the economy specifically
affecting the automobiles / auto components industry.
As a natural consequence the customers placed continuous orders for the
company‟s products and services; besides new customers who placed their confidence
in the company. In spite of the slowdown in the economy, broadly affecting the
industries, the company achieved total income of Rs 9918.69 lakhs registering an
increase of only 13.607% over that of the previous year.
Established Date 16 April 1970
Capital INR 12,25,00,000
Promoters of the company Mahadevan G & Mr. G. Balasubramaiam
Land Area (Peenya) 589,950 Sq ft
Building Area (Peenya) 75,000sq ft
Total number of employees 136 on roll employees and 75 contract
employees.
Product Furnace Manufacturing, Commercial Heating
Main Customer More than 350
Production Capacity On an average 60 numbers of furnaces of
various specifications every year. Furnaces are
manufacture to maintain a temperature of 8000
to
18000
temperature.
18. An Organisation study at HighTemp Furnaces Ltd
18
After absorbing additional cost of technical knowhow for new projects, the
company has posted profit before taxes of Rs 79.54 lakhs as compared to Rs 397.67
lakhs in the previous year in spite of higher provision of depreciation owing to the
implementation of expansion project.
The profit after tax provision for deferred tax liability, for the year under review,
stood at Rs 72.53 lakhs as compared to Rs 406.04 lakhs in the previous year.
During the year under review Dowa Thermotech Co Ltd, Japan increased stake
in the company up to 80% by acquiring shares from other shareholder and hence the
company has now become a subsidiary of Dowa Thermotech Co Ltd.
ABOUT HIGHTEMP FURNACE LIMITED:
Brightest technical talent in the furnace technology
World class facility spread over across 75000 sq ft.
Renowned customer base at home & around the globe.
Internationally quality certifications.
High temp Furnace Ltd is the largest third party commercial heat treatment
company in India.
Installation of over 2000 furnace till date globally.
24X7 the Hightemp Furnace Ltd works for 365 days for 24hours.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
Effectiveness of Hightemp Furnace Limited continues to remain committed to maintain
high standard of internal control design to provide adequate assurance on the efficiency
of operations & security of its assets. The adequacy & the internal control across
various activities as well as compliance with laid down systems and policies are
comprehensively and frequently monitored by the management at all levels of the
organization.
19. An Organisation study at HighTemp Furnaces Ltd
19
The system of budgetary control, cost control and reduction which has been followed
and helped the company in controlling the cost of operations. The company is in the
process of introducing more system and control for monitoring the operations, risk
management, corporate governance and over all compliance with internationally
acclaimed management practices.
NATURE OF BUSINESS:
HIGHTEMP FURNACE LTD., is manufacturing of Industrial Furnaces and Labour
Charges of Commercial Heat Treatment. The heat treatment process is used for heat
treatment of auto components. By doing heat treatment process the auto parts will
become strengthen to withstand the load speed etc. Auto parts will not break when
those are put to use. After the heat treatment process the component are used by the
auto industries.
The auto components are used to manufacture:
Two wheelers
Three wheelers
Four wheelers
BOARD OF DIRECTORS:
Mr. M.Gopal : Managing Director
Mr. M. Narayan : Executive Director
Mr. R. Vardharajan : Company Secretary & Director – Commercial
VISION AND MISSION STATEMENT:
VISION:
The company will provide best service and quality in the product.
The company will manufacture all products according to technical drawings as per
customer requirement & based on the applications.
20. An Organisation study at HighTemp Furnaces Ltd
20
The company will strive to grow with the demand of the global market.
The Company will invest in advance technology.
MISSION:
“It is our endeavor to offer high performance, efficient thermal systems to our customers
through reliable designs, good production techniques, supported by aftermarket spares
and timely service. Our aim is to achieve customer satisfaction through continuous
improvement in our approach and practices.”
CERTIFICATIONS:
ISO 9001-2000 certified by SGS Yarsley International Certifications Services Ltd for
Bangalore and Pune plant.
TS 16949 certification by DNV Det Norse veritas
AS 9100 for CHT plant in Bangalore
ISO 9001:2008 and ISO 14001:2004 for furnace division.
Nadcap certification by SAE Aerospace Standard AS7003 in Peenya
Nadcap certification by Aerospace Private Limited in Nelamangala Taluk.
MILESTONES:
It has been a rewarding 40 years - right form building the first furnace. The journey
continues:
1971 – Established – Manufacturing Laboratory Ovens and Furnaces.
1979 – Commenced Commercial Production (Furnace building in Bangalore).
1986 – Technical collaboration with Tokyo Heat treatment (DOWA).
1990 – Dowa Equity Stake.
1992 – Started Commercial Heat Treatment in Bangalore.
1996 – Started Commercial Heat Treatment in Pune.
2000 – Started Commercial Heat Treatment in Gurgaon.
2004 – Technical collaboration with IQ Technologies Inc.
21. An Organisation study at HighTemp Furnaces Ltd
21
2006 – Technical collaboration with Pyromaitre& TTI services.
2008 – Technical collaboration with Applied Process Inc Technical collaboration with
Indian Institute of Science for Power Generation through Biomass Gasification.
2010 – Technical collaboration with AFC– Holcroft, USA for Controlled Atmosphere
Aluminum Brazing Furnace.
2011 – Dowa invests in Hightemp with 80% shareholding and Hightemp becomes
subsidiary of Dowa Japan.
2015 – 2nd new manufacturing facility at Yeswanthpur Industrial Suburb.
2016 – Technical collaboration with Sanken Sangyo Company limited Japan.
PLANTS OF HIGHTEMP FURNACES LTD
PLANT 1: (Karnataka)
HIGHTEMP FURNACES LIMITED
Manufacturing Division and Commercial Heat Treatment
2nd
Phase, Peenya Industrial Area,
Bangalore – 560058
PLANT 2: (Maharashtra)
HIGHTEMP FURNACE LIMITED
Commercial Heat Treatment / Auto Component Division
Gat Number 615, Kuruli Village, Chakan,
Pune – 410 501
PLANT 3: (Haryana)
HIGHTEMP FURNACES LIMITED
Commercial Heat Treatment
12KM stone, Sohan Road, Bhondsi Village,
Gurgaon – 120 102
22. An Organisation study at HighTemp Furnaces Ltd
22
PLANT 4: (Tamil Nadu)
HIGHTEMP FURNACES LIMITED
Commercial Heat Treatment
No. 55, Thandalam village, SriperumbudurTaluk,
Kancheepuram District
PLANT 5:
HIGHTEMP FURNACES LIMITED
Manufacturing Division
2/2B, Veerananjipuram, Budhihala,
Nelamangala, Bangalore.
PLANT 6:
HIGHTEMP FURNACES LIMITED
Manufacturing Division
Yashwantpur Industrial suburb
Yashwantpur Industrial Estate,
Bangalore.
REGISTERED OFFICE:
# 27-29, Supariwala Building,
1st
Floor, EM Merchant Road, Khadak,
Mumbai – 400009
OBJECTIVES OF THE COMPANY:
Increase the total sales and improve the quality of the products offered.
23. An Organisation study at HighTemp Furnaces Ltd
23
To be competitive at a maximum value of money.
Increase the total sales and improve the quality of the products offered.
QUALITY POLICY:
Hightemp Furnace Limited is committed to supply quality, furnace and on time to
achieve fullest customer satisfaction. It achieves this by providing training to all levels by
continually improving the system and process.
OWNERSHIP PATTERN:
DOWA Thermotech Co. Ltd a subsidiary of DOWA Holdings Co has entered into an
agreement with the shareholders (owners) of Hightemp Furnaces Ltd., heat treatment
and industrial furnace manufacturer in India, to acquire shares in HTF. The share
acquisition date is schedule for the end of September, with DOWA Thermotech
acquiring up to 80% of shares outstanding in HTF at that time.
HTF has maintained a relationship with DOWA Group for over 20 years, including the
licensing of technology in 1985 and capital participation in 1991.
DOWA Thermotech will now penetrate the fast growing Indian automobile market in
earnest with controlling interest in HTF to be acquired by increasing the stake up to 80%
(shareholding ratio of DOWA Thermotech is 16.1% as of the end of the June 2011).
In India, with its continually developing economy, the heat treatment market is expected
to grow significantly in association with the expansion of automobile production, and its
compound average growth rate by 2015 is forecast at around 12%. After acquiring the
controlling interest, the DOWA Group will establish a firm position in the expanding
Indian market by adding DOWA Thermotech‟s considerable manufacturing technologies
and its network with Japanese customers to HTF‟s business base.
The Group will seek to promote the sales to existing customers of HTF centering
on local and foreign-affiliated manufacturers and meet demand form DOWA
Thermotech‟s Japanese customers for advancement and business expansion in India
24. An Organisation study at HighTemp Furnaces Ltd
24
by enhancing the lineup of batch furnace and introducing new manufacturing
technologies, such as continuous furnace, from Japan, in addition to existing licensing
of technologies.
GLOBAL PARTNERS:
At HIGHTEMP we strive to provide quality with world-class services to address the
needs of the industry verticals where we operate in. Enabling this journey are our
partners – who share our passion in providing products and services that are best-in-
class. These strategic relationships have helped us expand our service offerings and
acquire a strong industry focused solutions perspective that is aligned to meet the
business needs of our customers in various industries.
25. An Organisation study at HighTemp Furnaces Ltd
25
Dowa Themotech, Japan
Dowa Thermotech, is a pioneer in the design &
manufacture of highly reliable heat treatment
technology and systems.
AFC-HOLCROFT
AFC-Holcroft is one of the most reputed furnace
manufacturers for CAAB systems.
TTI Group – A Division of Aalberts Industries N.V. –
Birmingham, UK
TTI Nitrotec - wholly owned by TTI group - is a surface
treatment technology which can result in 66% saving in
material cost.
Applied Process Inc
Applied Process Inc. has been the technology leader in
heat treating Austempering of Ductile Iron (ADI) since
1978.
Indian Institute of Science
IISc is involved in innovative research and
developmental activities in the field of Bio-resource and
has developed techniques of gasifying a wide range of
26. An Organisation study at HighTemp Furnaces Ltd
26
COMPETITORS:
Each and every industry faces severe competition both in the national and international
market. Hightemp Furnace Ltd faces stiff competition from other furnace manufacturing
companies. The following are the companies
a) Body Care
b) Unitherm
c) Hertek Furnace
CUSTOMERS:
Four decades since inception, products and service from the HIGHTEMP portfolio have
been ensuring the delight factor for a growing customer base across the country.
biomass for power generation.
27. An Organisation study at HighTemp Furnaces Ltd
27
INFRASTRUCTURAL FACILITY:
Infrastructural facilities mean the basic requirements that the company should look after
in order to ensure free flow of activities. The company is providing following
infrastructural facilities in order to satisfy its workers, distributors and customers. The
company provides all the facilities stated by Factories Act of 1948.
The company provides the following facilities to the employees in the factory:
1. Uniform
2. Allowances for shoes
3. Leave benefits
4. First Aid facilities for employees
5. Provide mineral water supply
6. Well furnished meeting hall with A/C
7. Lunch rooms
8. Safety/ security
9. Health care centre
28. An Organisation study at HighTemp Furnaces Ltd
28
10.Parking facilities
11.Lighting & ventilation
The Green Initiative:
Hightemp is aware of the fact that the business hinges on nature‟s fuel resource and
these eggs them on to constantly scout for processes that will effectively reduce carbon
footprint. Hightemp has an installed capacity of over 42 furnaces, and is in the process
of adding many more, to cater to the growing demand of heat treating across India. At
Hightemp, their business is closely linked to their capacity and capability to serve
customers in the automotive sector.
Typically, the processes used in treating such parts are Carburising and CarboNitriding
– operations that involve supply of adequate quantity of Carbon and Nitrogen for
absorption and diffusion into steel components. Being a very highly power intensive
process, we have been evaluating the possibility of using alternative fuel sources –
predominantly green power to fire our furnaces.
In line with this objective, the strategy is to recycle agriculture waste and wood waste as
biomass fuels, subject them to gasification, and couple this with an engine and a
generator, to produce power. This move will significantly reduce our carbon footprint
(green house gas emission) by virtue of being a carbon neutral technology.
This green initiative from Hightemp could possibly be a first-of-its-kind in India where
heat treating co-exists with green power to reduce the carbon foot print. Hightemp is at
an advanced stage of discussion and negotiations with several of its customers to adopt
this unique solution and thus contribute to make a positive difference in India‟s quest for
green power.
PRODUCT PROFILE
Furnace Manufacturing constitutes the core of the competencies – a key asset that has
ensures HIGHTEMP‟s position as one of the leading heat treatment furnace
manufacturers in India. The port folio of process, product and technology that is offered
29. An Organisation study at HighTemp Furnaces Ltd
29
by Hightemp Furnace Ltd has root in the wealth of in-house design expertise built over
the last four decades. The Hightemp furnace range:
i. Batch Type Integral Sealed Quench
ii. Batch Type THN Furnace
iii. Continuous Gas Carburizers
iv. Controlled Atmospheric Brazing
v. Mesh Belt Furnace
vi. Decarb Annealing & Blueing
vii. Vacuum Hardening Furnace
viii. Alkali Washers
ix. Rotary Retort
x. Tempering
xi. Rotary Hearth
xii. High Speed Tempering
xiii Endo Gas Generators
Batch Type Integral Sealed Quench Furnace:
Batch Type Integral Sealed Quench Furnace provides the benefit of uniform heating
from the sides through Radiant tube heaters located on either side. Integral Sealed
Quench Furnaces form Hightemp incorporated a cast integral fan to ensure uniformity of
temperature. For the furnace atmosphere, these furnaces provide the option of using
endothermic gas, Nitrogen-Methanol or Fine Carburising Process.
30. An Organisation study at HighTemp Furnaces Ltd
30
Batch Type THN Furnace:
The toughie furnace is a pollution free method for nit riding of metals. Parts are treated
at a Temperature lower A-1 transformation point in a mixed gas atmosphere consisting
of ammonia and endothermic gas. While the resulting Carbon and Nitrogen react with
the steel to carburize and nitride, the diffusion of nitrogen into the material ensures
enhances resistance to abrasion and fatigue.
Continuous Gas Carburizing Furnace:
Hightemp - Dowa is an acknowledged leader in Pusher Furnace technology, enabling
us to incorporate state of the art facilities in Pusher Furnace such as full automatics,
pick and place robot systems and SCADA. Continuous Gas Carburizers Furnaces are
31. An Organisation study at HighTemp Furnaces Ltd
31
endowed with a single track continuous gas carburizing design enabling consistent
production at low operating costs. What‟s more? A combination of the latest in
sophisticated controls, including data acquisition systems, ensures high quality heat
treatment.
Controlled Atmospheric Aluminum Brazing:
The AFC- Folcroft designed controlled Atmospheric Aluminums Brazing gives you the
most experienced, up-to-date technological advantages for processing aluminums heat
exchangers. The combined experience of AFC- holocroftes and Hightemp Furnace Ltd
brings the benefit of commitment to supplying the latest non-corrosive flux brazing
technology to the aluminum heat exchanger market. Hightemp Furnace Ltd‟s CAAB
systems designs offer complete solutions to today‟s ever increasing demands to
produce high quality parts with dependable throughout and minimal operating cost.
Mesh Belt Furnace:
Mesh Belt Continuous Conveyor furnace systems from High temp are specifically
designed to cater to a wide range of heat treat applications – including both atmospheric
and non atmospheric types – such as Hardening, Carburising, and Carob nit riding,
washing, Annealing, Tempering, Isothermal, Annealing and Stress Relieving. The
Decarb Annealing & Blueing furnace is the outcome of a special design based on
32. An Organisation study at HighTemp Furnaces Ltd
32
advanced Japanese technology for the conversion of non silicon steel as lamination for
motor stators.
Decarb Annealing & Blueing:
The Decarb Annealing & Blueing furnace is the outcome of a special design based on
advanced Japanese technology for the conversion of non silicon steel as lamination for
motor stators and rotors. This process involves Burn off, Decarb, Annealing and Blueing
with the combination of atmosphere to achieve the end result – low carbon (due to
decarburisation to the level of 0.005%) and iron loss below 6 watts per kg at 1.5T and
50 cycles for lamination of 0.5mm thickness.
Hightemp offers semi-continuous and continuous furnaces with ranges up to 1000kgs
per hour. The Decarb Annealing & Blueing furnaces that we supply can be heated
electrically or gas fired.
Vacuum Hardening Furnace:
Hightemp Furnace Limited Aerospace Pvt Ltd (HTA) is a joint venture between
Aerospace International, Canada and Hightemp Furnace Limited – India‟s largest
commercial heat treatment company and the market leader in furnace manufacturing.
With facilities in Canada and Poland, Aerospace provides heat treating services furnace
equipment solution to aerospace and high technology industries around the world. The
joint venture between Hightemp and Aerospace, incorporated in April 2006, reflects a
fine blend of Canadian manufacturing experience and Indian engineering expertise – to
focus on Vacuum Heat Treatment and manufacture of Vacuum Furnace.
Every furnace that rolls out of our manufacturing plant is subjected to stringent quality
checks before being shipped out to customers-ensuring Quality, reliability and efficiency
to minimize uptime and maximize productivity. While the High temp AEROSPACE
range consists of various sizes of horizontal front loading (VAH) abed vertical bottom
loading (VAV) furnaces, we also offer custom built furnaces. Horizontal front loading
(VAH) models provide great flexibility for general heat treating and brazing applications.
33. An Organisation study at HighTemp Furnaces Ltd
33
Vertical bottom loading (VAV) models are ideal for processing large circular parts such
as rings, stators or engine castings and long parts like shafts or rolls.
and
Alkali Washers:
Hightemp offers a range of Alkali Washers that are designed for pre-wash and post
wash of components before heat treatment and after quenching operations,
respectively.
Rotary Retort: An adjustable speed heat resistant cast retort is fitted inside this type of
furnace. This provides constant motion for the work piece for both uniform heating and
carburising. This type of furnace is particularly well suited for carburising of small
components such as screws, chains, bearing, rollers, washers etc.
Tempering Furnace:
Hightemp offers Tempering furnace for both low and high tempering processes. These
tempering furnaces provide a reliable platform for acquiring various mechanical
properties during tempering and reduce the residual stresses during the stress relieving
process. Pit Type, In-out box Type and the Double door straight through box type are
the various options that we offer on Tempering.
Rotary Hearth Furnace:
Rotary Hearth furnaces have a rotating hearth with adjustable speed and widely used
for reheating and hardening pre-carburised large sized components that require press
or plug quenching. Rotary hearth furnaces from Hightemp are available in a capacity
range of 80-500 kg/hr.
High Speed Tempering:
High Speed Tempering the PYRO way is a scientific approach to stress relieving and
tempering. The Pyrometer principle utilizes a heat transfer program developed to
34. An Organisation study at HighTemp Furnaces Ltd
34
simulate cycles prior to operation of the PYRO – a theory based on Heisler‟s (1948)
unsteady state heat transfer equations for infinite cylinders. Endothermic Gas Generator
creates an atmosphere to provide a positive pressure in a heat treating furnace and a
platform to formulate the carburising environment.
Endo Gas Generator:
Endothermic Gas Generators from Hightemp feature a unique soot-free control system
with an excellent reputation for trouble –free operation. What‟s more, a double pass
retort with uniform heating mechanism along with a patented pulse-less blower ensures
a constant and stable supply of output carrier gas.
Aluminum Solutionizing and Ageing:
Solutionizing and Ageing furnace applications from Hightemp provide pit type and
continuous type installation for Aluminum components.
MACHINE COMPONENTS:
FORGING & MACHINING SERVICES:
Ensuring exceptionally high levels of process compliance to address specific customer
requirements is at core of every service that we offer at Hightemp. Our foray into forged,
machined and heat treated components arena is an expressing of this commitment – an
35. An Organisation study at HighTemp Furnaces Ltd
35
initiative that has offered us with increased opportunities to serve our valued customers
better.
In addition to ensuring quality machined heat treatment components, forging services at
Hightemp service also mitigate supply chain issues faced by customers. What‟s more,
the installation of the renowned Schuler press enables us to meet stringent
requirements of the automotive sector.
PRECISION MACHINING SERVICES:
As part of the solutions portfolio, state-of-art Machining service form Hightemp Furnace
Ltd impairs micron level finish to components for select customers in line with their
specific requirements. Every process is preferred to conform to exacting standards so
as to achieve the specified levels of machining tolerances of transmission and bearing
components. Dedicated machine lines – including single & multi spindle CNC lathes and
CNC machining centre – address specific customer requirements, incorporating the
„cell‟ concept to maximize productivity. A key highlight of the Machining Services
offering from Hightemp is the fact that our solution has been able to compress the
„supply chain‟ for select customers.
EXTENDED HEAT TREATMENT:
Extended Heat Treatment service is one of the value additions that offer to the
esteemed customers, ensuring the benefits of assured quality and comparatively lower
pricing. As part of this service, exclusive Heat Treatment capacity is created to meet
requirements of large & medium industries – to ensure 24/7 delivery commitments.
36. An Organisation study at HighTemp Furnaces Ltd
36
COMMERCIAL HEAT TREATMENTS:
The commercial Heat Treatment division at Hightemp has been in operation since 1991.
Today, we have heat treat centres at close proximity to major automotive units at four
different locations across India – Bangalore (Karnataka), Pune (Maharashtra), Gurgaon
(Haryana) and Kancheepuram (Tamil Nadu).
The process of the Commercial Heat Treatment offering at Hightemp has its roots in a
combination of factors. Modern facilities, state of art equipment, well equipped
metallurgical laboratory and trained & component personnel – backed by controlled
atmosphere furnaces, auxiliary equipment‟s and advanced process control systems.
Hightemp has earned a strong reputation for providing reliable and high quality heat
treatment services at competitive prices – with an unflinching commitment to exemplary
quality assurance and on time delivery.
The Hightemp Commercial Heat Treatment services portfolio includes:
Carburizing & Hardening
Carburizing & Annealing
Bright Hardening
Carbon Nitriding
Annealing
Normalizing
37. An Organisation study at HighTemp Furnaces Ltd
37
Tempering
Nitro Carburizing
Nitriding
Steam Bluing
NITROTEC / NITRO CARBURISING PROCESS:
Nitrotec – the patented surface engineering process for the treatment of steel and cast
irons through a technical license from TTI Group Ltd, part of the Group Metal
Technology Division of Aalberts Industries N.V – is an important offering from the
Hightemp Commercial Heat Treatment services portfolio. This treatment is performed in
a gaseous nitrogen bearing atmosphere with temperature ranging between 550-740
degree Celsius. This produces iron nitride surface compound layers with thickness
ranging between 5-50mm, supported by a nitrogen rich diffusion zone in the substrate.
Options to select various parameters – such as treatment, temperature, time and
nitrogen poptential of the atmosphere – enable effective control of aspects such as
structure, composition & hardness of the compound layer and the sub-surface diffusion
zone. An innovative oxidation technique, combined with a specially formulated aqueous
quenching and organic sealant are incorporated based on the engineering requirements
of a specific application.
The low temperature diffusion treatments provided at Hightemp result in low alloy and
mild steels that are stronger (up to four times than the usual), produces wear resistance
equal to that of hard chromium plating and providing a black finish with outstanding
corrosion resistance.
A) AUSTEMPERED DUCTILE IRON:
Austempering is an isothermal treatment that imparts superior properties to ferrous
components. In line with the maxima of providing cutting edge technology services by
virtue of its technical license from applied process to customers, Hightemp offers a
38. An Organisation study at HighTemp Furnaces Ltd
38
range of Austempering Heat Treatment Services to manufacturers and end users of
cast iron parts. These include – ADI (Austempered Ductile Iron), AGI ( Austempered
Gray Iron) and CADI (Carboni Austempered Ductile Iron).
ADI is made by special heat treatment of cast ductile iron casting and ADI parts exhibit
twice the strength of ductile iron with good toughness, wear resistance and fatigue
strength. ADI parts are used extensively in automotive, agriculture, mining, construction
and railway sectors, and have successfully replaced steel fabrications, weldments and
forgings.
Hightemp‟s leadership in the Commercial Heat Treatment arena in India coupled with a
strategic alliance with Applied Process Inc., USA – a pioneer in the ADI domain –
enables us to offer top of the line ADI services. As a Technical License of Applied
Process Inc., USA, Hightemp offers distinct advantage like
Experienced and well trained in-house professionals.
Large data base of process parameters obviating the need for trail & error.
Completely programmed furnace-ensuring accurate controls & repeatability.
Ability to heat treats all grades of ADI & convenient location of the heat treat facility.
B) VACUUM HEAT TREATMENT:
HightempVacaero (HTVA) is a Joint Venture between Vac Aero International, Canada
and Hightemp Furnace Limited. This state of the art facility, located on the outskirts of
Bangalore at Nelamangla offers quality Vacuum Heat Treatment services. While we
offer Commercial Heat Treatment services, we also build Vacuum Furnaces. Company
offers Nitrogen / Argon gas quench with precise programme controls for vacuum,
temperature and atmosphere. This manufacturing facility is also supported by a well
equipped laboratory to meet Aerospace standards.
C) INTENSIVE QUENCING:
39. An Organisation study at HighTemp Furnaces Ltd
39
Intensive quench process is an intensive quenching technique that imparts superior
properties, residual surface compressive stresses and less part distortion compared to
that of a conventional oil quench. Hightemp offers this technology through the strategic
alliance with Intensive Quench. The Intensive Quench processes subjects steel parts to
very rapid and uniform cooling, utilizing highly agitated water for a specified time,
monitoring by a computer simulator.
Various types of steel such as plain carbon, low alloy, medium alloy, high alloy, tools
steels and carburized grades are used in this process.
D) FINISHING PROCESS:
Finishing Process services form Hightemp are powered by the highly efficient
Centrifugal High Energy (CHE) series of finishing machines. The CHE machine works
on the principle of generating a very high force enabling the machine to deliver a range
of finishes – very aggressive to mild – depending on the application. While the machine
RPM can be varied to suit the desired finish, the media used for typical applications
depend upon the nature of finish, the cut down required and the surface finish.
The CHE series machines are available in different capacities like 30, 40, 80, and 240
liters and in manual and semi automatic versions the sole maintenance requirement for
these machines is optimum greasing after every 400 hours of operation.
40. An Organisation study at HighTemp Furnaces Ltd
40
CHAPTER 4
ORGANISATION STRUCTURE
Organisational design is fundamentally the manner in which a management
achieves the right combination of differentiation and integration in the
organisations operations in response to the level of uncertainty in its external
environment. Differentiation here refers to the subdivision of functional or
departmental units each concentrating on a particular aspect of the organisations
operations and Integration refers to the linking of differentiated units to achieve
unity of effort in working towards organisational goals. In times of high
uncertainty greater organisational effectiveness is achieved through high
differentiation and high integration and in times of low uncertainty organisational
effectiveness is achieved through low differentiation and low integration.
Organisational structure is the formal and informal framework of policies and
rules within which an organisation arranges its lines of authority and
communication and allocates rights and duties. It determines the manner and
extent to which roles, powers and responsibilities are delegated, controlled and
co-ordinated and how information flows between various levels of management.
Hence this structure depends entirely on the organisations objectives and the
strategy chosen to achieve them.
The organisational structure at HTFL has its own set of advantages such as
more frequent promotions and continuous change in responsibilities and growth
hierarchy. Moreover the organisational structure is on the lines of a lean
enterprise that fosters communication across all levels staying true to HTFL‟s
ideology of openness and oneness .The flat structure also promotes effective
communication and teamwork and is inorganic in nature.
41. An Organisation study at HighTemp Furnaces Ltd
41
Several types of organizational structures are each defined to meet the needs of
organizations that operate differently. Types of organizational structure include
divisional, functional, geographical and matrix.
The organizational structure at HTFL has its own set of advantages such as
more frequent promotions and continuous change in responsibilities and growth
hierarchy. Moreover the organizational structure is on the lines of a lean
enterprise that fosters communication across all levels staying true to HTFL‟s
ideology of openness and oneness .The flat structure also promotes effective
communication and teamwork and is inorganic in nature.
42. An Organisation study at HighTemp Furnaces Ltd
42
Organisation Structure
EXCECUTIVE
DIRECTOR
GM-HR DIRECTOR
COMMERCIAL
DIRECTOR
TECHNICAL
DGM – Process
Development
AGM Heat Treatment
MANAGER PLANT
QUALITY
MANAGER- MARKETING EXCECUTIVE
- PLANNING
ASST MANAGER
QUALITY
SUPERVISOR
QUALITY
ASST
PLANNING
STORES IN
CHARGE
ENGG
PLANNING
SR.PURCHASE
OFFICER
ASST MANAGER
PRODUCTION
ASST MANAGER
MAINIENENCE
LAB
INSPECTORS
STORES
ASSISTANT
SHIFT
SUPERVISORS
PURCHASE
SUPERVISOR
PLANNING HEAD
SUPERVISOR
LAB
OPERATORS
PLANNING
ASSISTANTS
PURCHASE
ASSISTANTS
SHIFT
OPERATORS
STORE
HELPERS
MANAGING DIRECTOR
43. An Organisation study at HighTemp Furnaces Ltd
43
Classification of Various Departments
The efficient functioning of various departments is the reason behind the success of
HTFL. The departments at HTFL can be broadly divided into manufacturing divisions
and the non-manufacturing divisions. The various departments of the manufacturing
department are intentionally located at the safest of the plant facility as part of HTFLs
overall strategy due to its close proximity to the shop floor, all the other divisions are
housed in the front part of the company.
Manufacturing Divisions-
1) Production Division
2) Quality Assurance Division
3) Maintenance Division
4) Store Division
Non-manufacturing Divisions-
1) Purchase division
2) Finance and Accounting Division
3) Marketing Division
4) Human resources. Division.
Production Division
Production management refers to the application of management principle to the
production function in a factory. In other words, production management involves
application of planning, organizing, directing and controlling to the production process.
Production process is a process by which raw material and other inputs are converted
into finished products.
44. An Organisation study at HighTemp Furnaces Ltd
44
Production includes creation of both tangible and intangible services. The company
comprises of:
1) Furnace manufacturing
2) Commercial Heating.
FUNCTIONS INCLUDE:
Improving volume of production
Reducing rejection rate
Minimizing re-work rate
Maintaining delivery schedules
Updating processes and procedures
Controlling over time
Efficient training and team building
Enhancing customer satisfaction
Minimizing inventory and achieving better yields
Total Quality Management (TQM)
Business process Re-Engineering ( BPRE)
Controlling idle machine and man power hours.
Scope of Production:
HTFL manufactures furnaces and commercial heating. These will manufacture
according to customer specifications where the customer specifications are obtained
through product samples, methods department, develop product drawings based on the
product samples. Customer approval is obtained for product drawing of prototype
sample produced if requested by customers.
45. An Organisation study at HighTemp Furnaces Ltd
45
The company follows a contract review programme where in it is for the fresh
contracts, repeated orders and for review of the change in status of accepted orders
and order review for aftermarket. This process is conducted to ensure that customer
requirement are clearly understood and also to ensure that the capability exists to meet
the customer before the order is accepted and the differences if any are resolved.
Characteristics of Production Planning and Control System:
Input: Raw materials, parts, consumable power, engineering details, production
Schedules.
Process: The inputs are processed by the series of operations.
Output: The outputs are the completed part products.
Storage: Storage is provided after the receipt of the input materials between
each operation and finished goods.
Transportation: Input is transported between all operations in the system.
Information System: The automation system inter connects all physical activities
and provides a basis for management decisions.
Production Process
46. An Organisation study at HighTemp Furnaces Ltd
46
Phases In Production Planning And Control:
a) Planning Phase :
It has two Categories of planning namely prior planning and active planning. Prior
planning means Pre-production planning. This includes all the planning efforts which are
taking place prior to the active planning. Active planning means the actual production
planning which includes various activities directly related to the production at micro level
immediately following the prior planning.
INSPECTION OF
INCOMING
MATERIAL
STORAGE
SCHEDULE FOR
HEAT
TREATMENT
JIGGING
PRE-WASH
HEAT TREAT IN
QUENCH
FURNACE
POST WASH
SUB ZERO TEMPERING
INSPECTION
DE JIGGING
OILING,
PACKING,
STORING
AUDIT
SHIPPING
47. An Organisation study at HighTemp Furnaces Ltd
47
b) Action Phase :
Action phase has the major step of dispatching. Dispatching is the transition from
planning phase to action phase. In this worker is ordered to start manufacturing the
product. The task which are included in dispatching are job order, store issue order, tool
order, time ticket, inspection order, move order etc. regarding what is happening with
the job is collected.
c) Control Phase:
The control phase has the following two major modules:
Progress reporting: In Progress reporting, the data regarding what is happening
with the job is collected. Also, it helps to make comparison with the present level
of performance.
Corrective action: The tasks under corrective Action primarily make provisions for
an unexpected event. Some examples of corrective actions are: creating
schedule flexibility, schedule modifications, capacity modifications, make or buy
decisions, expediting the work, pre-planning and so on.
48. An Organisation study at HighTemp Furnaces Ltd
48
Steps of Production Planning And Control:
Production Planning and Control.
Production Planning:
a) PLANNING: Production planning may be defined as the technique of foreseeing
every step in a long series of separate operations, each step to be taken at the
right time and in the right place and each operation to be performed in maximum
efficiency.
PLANNING
ROUTING
SCHEDULING
LOADING
DISPATCHING
INSPECTION
CORRECTIVE
PRODUCTION PLANNING AND CONTROL
PRODUCTION PLANNING PRODUCTION CONTROL
FOLLOWING UP
49. An Organisation study at HighTemp Furnaces Ltd
49
b) ROUTING:
The main aim of routing is to determine the best and cheapest sequence of
operations and to ensure that this sequence is strictly followed. In small enterprises,
this job is usually done by entrepreneur himself in a rather Adhoc manner.
c) SCHEDULING:
It means working out of time that should be required to perform each operation and
also the time necessary to perform the entire series as routed, making allowances
for all factors concerned. It mainly concerns with time element and priorities of a job.
d) LOADING:
The loading determines who will do the work as routing determines when it shall be
done. Gantt charts are most commonly used in small industries in order to determine
the existing load and also to foresee how fast a job can be done. The usefulness of
their technique lies in the fact they compare what has been done and what ought to
have been done.
Production Control:
a) Dispatching:
b) Dispatching involves issue of production orders for starting the operations.
Necessary authority and conformation is given for:
Movement of materials to different workstations.
Movement of tools and fixtures necessary for each operation.
Beginning of work on each operation.
Recording of time and cost involved in each operation.
50. An Organisation study at HighTemp Furnaces Ltd
50
Movement of work from one operation to another in accordance with route Sheet.
c) Following Up:
Every production programme involves determination of the progress of work,
removing bottlenecks in the flow of work and ensuring that the productive operations
are taking place in accordance with the plans. It spots delays or deviations from the
production plans. It helps to reveal detects in routing and scheduling,
misunderstanding of orders and instruction, under loading or overloading of work
etc. all problems or deviations are investigated and remedial measure are
undertaken to ensure the completion of work by the planned date.
d) Inspection:
This is mainly to ensure the quality of goods. It can be required as effective agency
of production control.
e) Corrective measures:
Corrective action may involve any of those activities of adjusting the route, re-
scheduling of work changing the workloads, repairs and maintenance of machinery
or equipment, control over inventories of the cause of deviation is the poor
performance of the employees.
Quality Assurance Department
Quality refers to the some of the attributes or properties that describe a product.
These are generally being expressed in terms of specific product characteristics
such as length, width, colour, specific gravity and the like. The need for quality
needs no special emphasis. One benefit of quality is increased productivity. Better
quality means reduce costs for repairs, instruction, scrap, and rework and produce
warranties. Increased productivity results in better profits and builds customer
loyalty. Quality also results in sustained profits.
51. An Organisation study at HighTemp Furnaces Ltd
51
Quality assurance includes quality control and also refers to emphasis on quality
in the design of the products, processes and jobs and in selection and training of all
the expressions, it is quality control, which is widely used in the literature on quality.
HTFL is committed to total quality. They are sure to achieve it by identifying and
meeting the purchaser‟s needs while along includes their expectations on quality,
delivery and price. The company has led down objectives for achievement of the
quality controlled by involving all employees in understanding and implementing the
requirements of the quality policy and quality system.
Quality Assurance Department Involves:
a) Receiving inspection
b) In process inspection
c) Out coming inspection / final inspection
a) Receiving inspection:
The raw materials shall be inspected / verified in accordance with the receiving
inspection plan approach to the material, irrespective of the control exercised on vendor
and the results of the inspection shall be recorded in the formats specified in relevant
quality plan by Engineer quality assurance / user department. Quality inspection
involves process of:
The machining operations done by sub contractors shall be cleared to further
process based on self inspection reports given by them.
As a result of inspection verification, if any non-conformance is detected, it is
dealt in accordance with the procedure.
Capital item like plant and machinery, test equipment shall be verified in
consultation with user department against the data specified in the purchase
document before the use machine spares, brander items proprietary items,
consumables that affect product quality are verified as per purchase order by the
inducting departments as per inspection plan.
Packaging materials are certified as specified in receiving inspection plan.
52. An Organisation study at HighTemp Furnaces Ltd
52
The customer‟s supplied materials items shall be inspected as per order number.
Disposition of non-conforming customers supplied materials as a result of
inspection / verification shall be done in accordance with the procedure.
The customer supplied material shall be identified and stacked separately.
If for urgent production purpose material / sub contracted items shall be released
before incoming inspection / verification is completed, the following steps are to
be done:
Raw materials sub contracted items released under positive recall shall be
under the authority of unit head.
Verifier maintains a positive recall register and obtain unit head signature at
the appropriate column for release under recalls. Unit head shall issue these
items without waiting for receiving inspection approval and stamp the tag
released for urgent production purpose in real colour and communicate to
quality department for drawing the sample for inspection.
Items released under positive recall shall be identified by production
department by means of tag released for urgent production on the work only
and route card and attach a recall tag to the material.
The items can be progressed through in process stages and inspected as per
relevant quality plan and process control sheet.
However it shall be ensured that items released under recall is not taken up
for final inspection. Quality analyst is responsible to inform department
through IOM about the receiving inspection result of the material released
under recall status.
If the receiving inspection results the item conformance, analyst withdraws
the recall status tags enter the disposition in the recall register.
b) In process inspection:
For the purpose of routing and in process inspection the processes are made into 3
groups as mentioned below:
53. An Organisation study at HighTemp Furnaces Ltd
53
Group 1 – common facility
Group 2 – line 1
Group 3 – line 2
In- process inspection shall be carried out in accordance with respective
control plan for OEMs and quality plan and process control sheet for
aftermarket items.
The result of in process inspection is recorded in the respective job card for
each operation. Recording shall include first off inspection and process
inspection as specified. In – process characteristics which are not as per job
card specification that acceptable can be granted based on acceptance
standard for manufacturing.
After completion of each operation to route card maintained in the concerned
shop shall be updated by the PRN personnel based on the job card received
by them in the respective shop progress.
The non-conforming items ensure that material released under recall status,
for which receiving inspection is yet to be completed shall not be progressed
to final inspection.
The line engineers are responsible to ensure the product to held at every
operation and inter stage till the required inspecting specified in the quality
plans and process control sheet / control plan have been recorded in job card,
daily report, magnetic particle inspection report..
c) Final Inspection:
Final inspection shall be carried out in accordance with quality plan – final
inspection patient to the part numbers and sampling plans customer specified
quality plan shall be incorporated in the respective quality plan and process
control sheet.
In the case of non-conformance detected, the non-conforming product shall
be identified as per procedure and controlled as per procedure and
54. An Organisation study at HighTemp Furnaces Ltd
54
notification is though daily final inspection report, fault report and rework
menu.
The result of final inspection shall be recorded in daily final inspection report.
Product inspected satisfactorily to specified requirements as per quality plan –
final inspection shall be dispatched to finished goods stores only after
authorization on the production slip.
Details of roll markings marked on the valves are verified against customer
requirement and recorded in roll marking register.
Quality refers to the sum of attributes or properties that describe a product.
These are generally expressed in terms of specific product characteristics such as
length, width, colour and specific gravity.
Quality means increased productivity, quality also results in sustained profits.
Earning profit is one year and incurring loss the very next year will not speak high about
an organization. What is needed is sustained profit over a long period of time. This is
possible when the organization is able to maintain persistent quality for its product.
Maintenance Department
The Maintenance refers to upkeep and protections of plant and machinery,
building and other fixed assets. Maintenance department is located with keeping the
physical facilities in good operation conditions in the beginning stages. The quality and
quantity of the product tends to be good because of new plant and machinery plant after
conditions over a time, plant and manufacturing deteriorates due to wear and tear stress
strain. As a result quality and quantity of product comes down. It may also leads to
industrial causes and downfall. It is essential in activity that every manufacturing firm
needs to have all machines and establishment in a good working condition at any given
time. Maintenance is given as the function of management that is concerned with the
day to day problems of keeping the physical plant in good operating condition. Total
Productive Maintenance is a maintenance program which involves a newly defined
concept for maintaining plants and equipment.
55. An Organisation study at HighTemp Furnaces Ltd
55
In recent times, a new policy of total productive maintenance is gaining ground.
Japanese technology Total Preventive Maintenance is a systematic approach to
maintain the plants. It is not restricted to ground staff or maintenance department; it is
inclusive of all personnel from top to first line operation.
The objectives include:
Clean and efficient shop floor
Safe and pleasant environment
Quite an orderly flow of goods
Unattended operations and multi machines concept.
Total Productive Maintenance starts with 5S. Problems cannot be clearly seen when the
work place is unorganized. Cleaning and organizing the workplace helps the team to
uncover problems. Making problems visible is the first step of improvement. The 5S are:
Seiri means sorting and organising the items as critical, important, frequently
used items, useless or items that are not needed as of now.
Seiton means a place for everything and everything in its place. The items
should be placed after usage at the same place.
Seiso involves cleaning the work place and making it free of grease, oil, waste,
scrap etc.
Seiketsu involves discussing and deciding on standards for keeping the
workplace pathways neat and clean. These standards are implemented for
whole organisation and are tested randomly.
Shitsuke concerns with self-discipline. It includes wearing badges, following
work procedures, puntuality, dedication to the organisation etc.
TPM is a Japanese idea that can be traced back to 1951 when preventive maintenance
was introduced into Japan from USA. Its motto is zero error zero work related accident,
and zero loss.
It is a dynamic team based methodology for involving all employees in
developing a long term preventive maintenance programme and for reducing
56. An Organisation study at HighTemp Furnaces Ltd
56
unscheduled stoppages, break downs, instability and unreliability. TPM relies on small
group activities and participative, input total employee involvement and dedication to
quality of equipment care.
TPM has eight pillars of activity each being set to achieve a zero target. They are:
a) Focused improvement (korbetrn-Kaizen): for eliminating waste.
b) Autonomous maintenance (Jishu-Hozen): it involves daily maintenance activities
carried out by operators themselves that prevent the deterioration of the
equipment.
c) Planned maintenance: for achieving zero breakdowns.
d) Education and Training: for increasing productivity.
e) Early equipment product management to reduce waste occurring during the
implementation of a new machine.
f) Quality maintenance (Hinstistisu-Hozen): This is actually maintenance for quality.
It includes the most effective quality tool of TPM: poka – yoke, which aims to
achieve zero loss by taking unnecessary measures to prevent loss.
g) Safety hygiene, environment: for achieving zero work related accidents and for
protecting the environment.
h) Office TPM: for involvement of all parties to TPM since office processes can be
improved in a similar manner as well.
Stores Department
After inspection, purchased materials are taken to store for preservation, if they
are meant for stock. Non stock items are directly taken to the assembly lines from the
inspection. Preservation or storage is another aspect of material management with
proper management and coordination, storage can contribute to effective operations.
Storage is the function of receiving, storing and issuing materials. It involves the
supervision clearance of incoming supplies, to ensure that they are maintained in good
condition.
57. An Organisation study at HighTemp Furnaces Ltd
57
Stores layout is a fundamental factor in determining the efficient performance of the
department. Stores layout is situated near the point of use. So it can provide easy
receipt, storage and disbursement of materials and it also provides minimum handling
equipment and personnel. Stores being a vital part in an organization, HFL have stood
to the expectations of all such demands that are required for maintenance of stores
department.
FUNCTIONS INCLUDE:
To receive raw materials and account for them.
To provide adequate and proper storage and preservation to the various items.
To meet the demand of the consuming departments by proper and account for
consumption.
To minimize obsolescence,surplus and scrap through proper codification,
preservation and handling.
To highlight stock accumulation, discrepancy and abnormal consumption and
effect control measures.
To ensure good housekeeping so that material handling, material preservation,
stocking and issue can be done adequately.
Purchase Department
Purchasing refers to the act of buying an item at a regular price. Such a narrow
concept of purchasing became gradually winded as time passed by purchasing is a
managerial activity which goes beyond the simple act of buying, but also includes
planning and policy activities covering a wide range of related and complementary
activities such as research and development strategies; ensure proper delivery and
methods to be followed.
58. An Organisation study at HighTemp Furnaces Ltd
58
The purchasing activity involves:
Purchasing action for raw materials is triggered by the raw material requirement
for six month. (imported material)
Other inputs include stock in hand, stock on order, consumption pattern and
stock policy.
Procurement action on consumables made by indirect material requirement
statement prepared by stores for an annual period covering and based on
establishes stock level.
In the case of capital equipments an approved capital expenditure request shall
be routed through store with material indent from the indenting department which
will form the bases for triggering purchasing action.
Central purchasing department is to place purchase order on format for items
covered under the scope for the procedure only on the approved vendor.
In case of emergencies like unexpected breakdown of machines and stoppage of
production purchase orders shall be made without material indent from the
concerned department on oral request. Such purchase orders will be identified on
the system as “EMERGENCY PROCUREMENT “.
”. In essential cases, where there is no material indent or the purchase order, the item
shall be purchased on oral request & such purchases shall be regularized by raising
material indent and purchase order, such purchase orders will be stamped as
“CONFORMATORY PURCHASE”
Finance and Account Department
An Accounting Department Provides Accounting Services And Financial Support To
The Organization It Belongs To. The Department Records, Accounts Payable and
Receivable, Inventory, Payroll, Fixed Assets and all other Financial Elements. The
Department‟s Accountants Review the Records of Each Department to Determine the
Company's Financial Position and any changes required to run .The Organization Cost
Effectively.
59. An Organisation study at HighTemp Furnaces Ltd
59
An accounting department is a department within a company that handles the
financial aspects of the business. This department keeps updated records of money
paid, received, owed and borrowed.
The Part of an Organization that Manages, Its Money. The Business Functions Of
A Finance Department Typically Include Planning, Organizing, Auditing, Accounting
For And Controlling Its Company's Finances. The Finance Department Also Usually
Produces The Company's Financial Statements.
The Accounting Department Is Responsible For Recording And Reporting The Cash
Flow Transactions Of a Company .This Department Has Some Key Roles And
Responsibilities,Including Accounts Receivable, Accounts Payable, Payroll, Financial
Reporting, And Maintaining Financial Controls.
Accounting Department Responsibilities in Detail are
Payroll: The total wages and salaries earned by every employee every pay period,
which are called gross wages or gross earnings, have to be calculated. Based on
detailed private information in personnel files and earnings-to-date information, the
correct amounts of income tax, social security tax, and other deductions from gross
wages have to be determined.
The various information to employees each pay period, have to be attached to payroll
checks. The total amounts of withheld income tax and social security taxes, plus the
employment taxes imposed on the employer have to be paid to federal and state
government agencies on time. Retirement, vacation, sick pay, and other benefits earned
by the employees have to be updated every pay period.
In short, payroll is a complex and critical function that the accounting department
performs. Many businesses outsource payroll functions to companies that specialize in
this area.
60. An Organisation study at HighTemp Furnaces Ltd
60
Accounts Receivable– Another critical duty of the accounting department is to account
for and track receivables, including outstanding invoices and any required collection
actions. Accounts receivable is responsible for creating and tracking invoices. The
responsibility here includes assuring that customers pay those invoices on time, so a
system of friendly reminders is crucial.
Financial Controls - Financial controls include reconciliations, dividing the
responsibilities and following the GAAP standards of accounting principles, all of which
are implemented with view toward compliance, fraud and theft prevention. The role of
the Controller is to ensure procedures are set up properly to manage that process
without errors.
Reporting and Financial Statements -
The primary reason you collect data properly in your accounting software is to prepare
financial reports that can be used for budgeting, forecasting and other decision making
processes. In addition, these and other reports are needed for communication to
investors, banks and other professionals that play a role in the growth of your business.
Key Positions in an Accounting Department
Chief Financial Officer (or CFO) – CFOs are typically the head financial executive of
large businesses. They oversee the financial strategy, health of the business, and
manage the rest of the financial department. CFO‟s are very forward thinking and will
help businesses navigate through growth stages and downturns. With their knowledge
of company finances, they help senior management understand the financial impact of
real-time decisions to ensure the fiscal success of the business.
Their Duties Include Financial Planning, Reporting And Controls, Short and Long Term
Business Strategy, Investments, Hedging, Mergers and Acquisitions, Cash
Management, Internal Risk Management, Corporate Finance, Auditing and Accounting
61. An Organisation study at HighTemp Furnaces Ltd
61
Financial Controller – Financial Controllers Are Key Players within Accounting
Departments and Work alongside CFO‟s And Financial Directors. Their Function And
Responsibilities Include Financial Accounting, Preparation, Reporting, Analysis,
Budgeting, Project Management and More. Their Key Role Tends To Focus On
Immediate Financial Issues and Management.
Accounting Manager – An Accounting Manager Is Responsible For A Company‟s
Accounting Activities That Include Maintaining and Reporting on Both The Cost And
Financial Sets of Accounts But Does Not Handle or Negotiate. The Accounting Manager
Establishes and Enforces The Accounting Principles Based On Statutory Requirements
and Auditing Policy.
Chief Accounting – The Chief Accountant Holds the Same Responsibilities As The
Accounting Manager, But The Role Simply Differs In Terms Of The Job Title.
Accounting Supervisor – Shares the Same Responsibilities As An Accounting
Manager And Provides Support as A Member Of His/her Team.
Accountant – Accountants Play A Key Role in Finance Departments Such As The
Measurement And Interpretation Of Financial Information. The Results of Their Work
Ensure Compliance, and Provide the Groundwork for Greater Financial Strategies.
The Purpose of accounting is to provide the information that is needed for sound
economic decision making. The main purpose of financial accounting is to prepare
financial reports that provide information about a firm's performance to external parties
such as investors, creditors, and tax authorities.
Marketing Department
Today‟s successful companies share along focus and a hearty commitment to
marketing. Modern marketing seeks to attract new customers by promoting superior
value and to keep current customers by delivering satisfaction. Sound marketing is
critical to the success of all organization. But marketing combines many achieve-
62. An Organisation study at HighTemp Furnaces Ltd
62
marketing research, product, department, distribution, pricing, advertisement. Personal
selling, marketing strategy and others designed to sense, serve and satisfy customers
needs while meeting the organization goals. The marketing concept was born out of the
awareness that a business to start with the determinations of consumer wants and ends
with the satisfaction of those wants.
Marketing can be defined as “the performance of business activities that direct
the flow of goods and services from product to consumer or to the user.”
Marketing means the performance of business activities that direct the flow of goods
and services from producer to consumer. The primary function of marketing is to create
and maintain a satisfied customer. Marketing management is an ongoing process under
dynamic marketing environment.
Responsibilities of Marketing Manager
Develop marketing plans
Setting targets
Help finance department to analysis profit earned through different product
line.
Effective marketing.
63. An Organisation study at HighTemp Furnaces Ltd
63
Structure of Marketing Department
Marketing Activities
The marketing activities have the following steps
a) Contact according to the necessities
b) Follow up
c) Getting the approval to do business
d) Get the number of quantities to be produced
e) Get the materials needed
f) Get the styles required
Marketing manager
Sales executive
Clerical staff
64. An Organisation study at HighTemp Furnaces Ltd
64
Human Resources Department:
HR – Recruitment Section Activities:
Consolidation of total manpower vacancies across company on a weekly basis.
Study of job profile required & sourcing of profiles again respective vacancies.
Scrutiny of profiles, Short listing and schedule interviews.
Selection, Medical Fitness Confirmation, Salary Negotiation and Offer release to
candidates.
Post selection joining formalities includes arranging for initial stay and
reimbursement of joining expenses.
Establish network with external head hunters and educational institutions on a
regular basis for improving the sourcing activity.
REPLACEMENT
Approval by:
Head of User Div. +
HR
Confirmation of
Age, Job Grade,
Job Description,
and Skill sets.
Sourcing of
profiles
Screening by HR
and User Division
NEW VACANCY
Approval by:
Top Mgmt (DMD)
Manpower Requisition by
User Div.
(Enclosed Job Description)
Call for Interview
Selection as per Standard
Interview Process
65. An Organisation study at HighTemp Furnaces Ltd
65
HRD Measures Including Welfare Measures
Policy And Procedures
a) (GPAI) - Group personal accident insurance.
b) Group Medishield/Mediclaim insurance policy
c) Bank loan scheme (personal & vehicle loan).
d) Uniform.
e) Canteen.
f) Other Welfare measures.
a) Group personal accident insurance - (GPAI)
GPAI is an insurance policy taken by the CO from an outside insurance agency
to make available medical support and financial assistance to employees in case
they meet with an accident.
Salient features:
Medical support
Insurance CO will reimburse full or part of medical expenses. No hospitalization
is required to make a claim.
Salary payment
Employee‟s absence from duty due to accident will not affect the salary as
insurance CO reimburses the same based on earning capacity as per the limit
provided under insurance policy.
The policy is available anywhere in the world.
b) Med claim insurance policy:
The Medishield Insurance policy covers reimbursement of in-patient hospitalization
expenses insured for treatment of illness or injury sustained.
66. An Organisation study at HighTemp Furnaces Ltd
66
Domiciliary hospitalization claims: Medical treatment for period exceeding three days for
such illness or injury which in normal course would require care and treatment at a
hospital but actually taken while confined at home in India is considered if the condition
of the patient is such that he cannot be moved to the hospital.
i. Pre existing disease coverage: The reimbursement of expenses, which are in
pre existing conditions at the time of joining, is applicable only if treatment is
taken after 90 days from the date of coverage.
ii. Cashless Facility: The insured can avail the facility of hospitalization without
making cash or cheque payment.
iii. Bank loan scheme (personal & vehicle loan):
Purpose: To support employees during financial emergencies & help them to maintain
& improve their quality of life. Develop a sense of belonging with HFL through mutual
trust.
Applicability: All confirmed employees in all grades, provides this facility & the
discretion of sanction is with the bank. Company shall take the responsibility only to the
extent of deducting the EMI from the salary & remit the same to the bank on monthly
basis as per authorization.
Purpose: 1) To have a sense of unity.
2) Identification.
3) Safety and workability.
4) Pride.
5) Discipline.
67. An Organisation study at HighTemp Furnaces Ltd
67
c) Welfare For Employees:
Safety is simple term means freedom from the occurrence or risk of injury of loss
industrial safety to the protection of workers from the danger of industrial accidents. In
HFL managers are given the responsibility for ensuring safety at work place. Labour
welfare is for taking care of well being of workers by employee‟s trade unions and
governmental and non-governmental agencies. In order to protect workers from
accidents they are provided with Goggles, Hand gloves, Welding glass, Fiber stalls,
finger stalls etc.
68. An Organisation study at HighTemp Furnaces Ltd
68
CHAPTER 6
SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Challenges involved in a project or in a business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to
achieve that objective. The technique is credited to Albert Humphrey, who led a
convention at Stanford University in the 1960s and 1970s using data from Fortune 500
companies.
A SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. Strategic Planning has
been the subject of much research.
INTERNAL
EXTERNAL
Strengths Weakness
Opportunities Challenges
SWOT
69. An Organisation study at HighTemp Furnaces Ltd
69
STRENGTHS:
Better product quality and strong product innovation skills:
The Company follows strict measures in developing better product, which
satisfies customer‟s interests and desire through innovative techniques.
Uniform culture:
Standard system of production and company culture is followed uniformly throughout
the company thereby no deviations in its quality.
Pull system of production is carried on:
Products are procured only as they are ordered by customers. This standardizes
the amount of inventory in the production process.
Brand Image:
The Company has a good brand image among the customers due to its good
quality products and long time existence in the market.
Customer Relationship:
The Company has a good network and dealership. It has dealers in almost every
part of South India especially Bangalore and Chennai. It also has prompt after
sales service and good customer relationship.
Experience:
The Company has an experience of almost 48 years in the industry.
Employees:
Company has satisfied and dedicated employees. In addition to this; the job
satisfaction is more. The prominent reasons being job security, better wages and
good working conditions.
Quality Checking:
Stringent hygienic measures are applied with regular laboratory testing. Every
raw material is tested by the quality department. Hence the products are reliable,
safe and non volatile.
70. An Organisation study at HighTemp Furnaces Ltd
70
WEAKNESS:
Higher Lead Time:
Manufacturing and Heat Treatment both involves manual work so the overall
execution time to finish process is lapsed than planned date.
Power shortages:
Due to frequent electric power shortage, the company cannot utilize its resources
fully.
Transportation problem:
Since machines are bulky, they need to be given care in reaching the destination,
requiring an additional effort by the company.
No system to check for safety measures:
No proper system exists to check whether the worker is using safety wear or not,
which may lead to accidents. As breakouts happen regularly, there is no proper
system in checking whether employees wear safety equipment.
Cost:
The Company has many departments which lead to high over head costs. In
addition to this; hike in diesel price is an extra cost for the company
Raw Materials:
Cost and availability of the raw material is affected in every season.
OPPORTUNITIES:
Increasing buying power and customer base in India:
As there has been an enormous increase in takers for furnace machines; the
company has got the scope of increasing their profits.
71. An Organisation study at HighTemp Furnaces Ltd
71
Diversification:
Expansion of product portfolio to diversify and thereby establish in this bigger
domestic market.
Higher demand:
As there is a demand for furnaces in the market, there will be an increase in
profitability because of the higher demand.
Better Purchasing Power:
Strong financial strength of the company has enabled a higher purchasing power.
If the raw materials are purchased in bulk quantity, the company could procure it
at a special discount.
Production Units:
Presence of production units in four states helps the company to widen its market
in national and international level.
CHALLENGES:
Entry of international players in domestic market: As India is advancing
economically, there has been an increasing competition from the international
companies which can affect the sales of the company.
Exchange rate fluctuations: Exchange rate fluctuations affect the company‟s
overall revenues since majority of its components are procured from overseas.
Competition: Competition from other manufacturers of organized and
unorganized sectors can affect the sales rate of the company. This in turn will
affect the overall growth of the company.
Cost:
Excess inventory carries an additional cost which can affect the line of credit.
72. An Organisation study at HighTemp Furnaces Ltd
72
Findings
During the process of my organizational study the following findings were
found to be relevant.
i. We can observe that there is an increase in material cost, labor cost,
power and fuel cost every year.
ii. Since there is an increase in cost per product, an alternative material
is found without affecting the quality and customer requirement.
iii. There is a separate department called production planning
department which will work out machine capacity plan and then
assets requirements of machines and men.
iv. Workmen are expected to wear uniforms which will make them feel
equal.
v. HTFL is committed to Total Quality. TQM is very well managed and
controlled by the organization. More importance is given to quality of
the product which has to be maintained.
vi. Co-operation among the workers of the various departments are very
comfortable and flexible.
73. An Organisation study at HighTemp Furnaces Ltd
73
Unique Findings
a) Equality and Open Culture:
Another notable and admirable ideology followed at HTFL is that of equality and
open culture. The common lunch hall is a perfect example to validate this fact. Here, the
same delicious meals are served to all employees, managers and shop floor mechanics
alike, giving no place for discrimination of seniority. On the contrary this builds a strong
feeling of oneness among the staff making them truly feel they are a significant and
intricate part of the Hightemp family.
Another notable experience is the sight that meets one‟s eyes at the office block
.There is no cubicles or separators throughout the office redefining a culture of
transparency in operations and communication without boundaries or hierarchical
discrimination.
b) The Green Initiative Eco Management:
The organisation is aware of the fact that business hinges on nature‟s fuel
resources and that this constantly scouts for process that will effectively reduce our
carbon foot print. At HTFL, business is closely linked to the capacity and capability to
serve customers in automotive sector.
As a result; the strategy is to recycle agricultural waste and wood waste as
biomass fuels, subject them to gasification, and couple this with an engine and a
generator, to produce power. This move will significantly reduce our carbon footprint by
virtue of being carbon neutral technology.
This green initiative from HTFL could possibly be a first of its kind in India where
heat treating co-exists with green power to reduce the carbon footprint.
74. An Organisation study at HighTemp Furnaces Ltd
74
Suggestions or Recommendations
i. HTFL should make proper financial planning so that available funds are utilized
in a more efficient and effective manner.
ii. Company can earn profit by expanding the market by increasing the volume
growth in sales and production.
iii. Improve the canteen facility to the employees by appointing canteen managing
committee for maintaining food quality and hygiene standard.
iv. Company should reduce the idle capacity in order to increase the efficiency in the
operations which will speed up the production process and deliver the product on
time without any delay.
v. The company should give timely training for the employee‟s in order to upgrade
their knowledge in latest techniques.
vi. Safety equipments and measures are to be incorporated in the production
department.
vii. The company should get a completely accepted product design from the
customer during a contract.
viii. As there is a demand for furnaces in the market, there will be an increase in
profitability because of the higher demand. This will further have an effect in the
sales volume of the company thus enabling the company to have higher profits.
Conclusion
HTFL has witnessed a steady growth over the years – from being a builder of small
ovens and laboratory furnaces to become one of India‟s best known manufacturers of
Heat Treat Furnaces. The Company follows strict measures in developing better
product, which satisfies customer‟s interests and desire through innovative techniques.
75. An Organisation study at HighTemp Furnaces Ltd
75
What sets apart is the fact that HTFL offers both Atmospheric Heat Treatment
Furnace Systems and Commercial Heat Treatment. By the study of production planning
and control in HTFL, the value of heat treatment plants has been increased to a great
extent from Rs. 391400, to Rs 432933. Latest technology in production has been
adopted. This has led to minimum wastage of time and resources working condition at
office is good.
One of the notable and admirable ideologies followed at HTFL is that of equality
and open culture. The common lunch hall is a perfect example to validate this fact. Here
,the same delicious meals are served to all employees, managers and shop floor
mechanics alike, giving no place for discrimination of seniority. Four decades since
inception, products and services from the HIGHTEMP portfolio have been ensuring the
delight factor for a growing customer base across the country.
As a pioneer in the furnace manufacturing industry, HTFL is determined to move
with the times, asking on new challenges, and achieving new milestones by
implementing the latest techniques of production.
76. An Organisation study at HighTemp Furnaces Ltd
76
Bibliography
Reference books
Sl.NO Author Title of the Book Publisher Edition /
Year
1 Stephen P Robbins
& Timothy A Judge
Organisational
Behaviour
Pearson, NewDelhi 15 Edition /
2013
2 S.P.Jain &
K.L.Narang
Corporate
Accounting
Kalyanai
Publishers,New Delhi
2015
3 CA Pawan Sadra &
CA D G Sharma
Financial
Reporting
Taxmann's
Publications,New
Delhi
2013
Hightemp Furnaces Limited Business Guide.
Hightemp Furnaces Limited Audited Financial Statements.
Websites
www.hightemp-furnaces.com