This document provides information about a short term project done by Adarsh NJ at Indian Telephone Industries Ltd (ITI Ltd) in Palakkad, Kerala. It includes an introduction to ITI Ltd's history and current projects. It then describes the various departments at ITI Ltd, including marketing, planning, purchasing, quality assurance, manufacturing, and more. It provides details on the processes involved in manufacturing smart energy meters as an example product. Finally, it discusses the printed circuit board production process at ITI Ltd.

1. i
Short Term Project
Done by Adarsh NJ, 19DM015
On
Indian Telephone Industries Ltd (ITI Ltd),
Kanjikode Industrial Area,
Palakkad,
Kerala
ANALYSIS OF WORKING METHODOLOGY &
PROBLEMS OF INDIAN TELEPHONE
INDUSTRIES LIMITED

2. ii
Certificate from Faculty Mentor
This is to certify that Mr. Adarsh.N.J, Roll Number 19DM015, student of Post
Graduate Diploma in Management has worked on a short term project titled
“Analysis of Working Methodology & Problems of Indian Telephone Industries
Limited” after Trimester I in partial fulfilment for the Post Graduate Diploma in
Management program.
DATE: ___________ SIGNATURE: _____________
(Prof. S.S.Dubey)

3. iii
Acknowledgement
I would like to express my special thanks of gratitude towards all the employees of
ITI Ltd and the ones who gave their valuable time for my questions and queries,
without which it would not have been possible in completing this project. I convey my
heartfelt thanks to Mr. Jimmy.J.Nalappad (Deputy General Manager of HR) and Ms.
Laksmy (Assistant Manager of HR) in giving me this opportunity of understanding the
working of the plant.
Finally, I would like to thank my faculty mentor Prof. S.S.Dubey for his guidance in
carrying out this project work.
DATE: _____________ SIGNATURE: ______________
(Adarsh.N.J)

4. iv
Executive Summary
The objective of this project is to analyse the working methodology and identify the
problems faced by Indian Telephone Industries Limited. My study on ITI Ltd is
focussed on the overall working of the plant from top to bottom which includes all their
ongoing projects on Smart Energy Meter, SMAASH PCs, PCBs, HDPEs, ISRO Rocket
Parts and Telephone Exchange Cards.
This project has helped in developing an insight to my knowledge of working of a
company which I have learned in PGDM course so far.

5. v
Table of Contents
S.No Content Page No.
1. Introduction and history of ITI Ltd 1
2. Departments of the Company 3
3. Process Flowchart 14
4. Problems Faced 15
5. Observation Analysis 15
6. Conclusion 16

6. 1
Introduction and History of ITI Ltd.
ITI Ltd or Indian telephone Industries Limited was established in the year 1948 and it
is the first Public Sector Undertaking (PSU) of the Independent India. It was
established in order to help the government for setting up the ever sensitive and
crucial telecommunication field all over India. The first ever ITI plant was established
in Bangalore in 1948.
Back then, telephonic calls were done through Electro mechanical exchanges. This
kind of exchanges had limited lines hence not everyone can afford to have a
telephone. Trunk calls had to be booked in order to call someone and the lack of
lines made people to wait for weeks before they could actually talk to the person they
wish to call. Then the company introduced the first Electronic Exchange which had
around 10000 lines in a single box. Then, the availability and usage of telephones
started increasing dramatically. Every households started buying telephones and
since ITI was the only company which was manufacturing telephones back then,
BSNL (Bharath Sanchar Nigam Limited) also a PSU which is in charge of providing
telephone connections throughout India had to buy telephones from ITI according to
a government policy. The concept of this policy was that both the buyer and the
seller would be from the government itself. During that time ITI was at its peak of its
growth since the demand was much greater than the supply was. By that time the
company have established six other plants around the country which includes the
Palakkad Plant which I visited for making this report.
With the introduction of mobile phones, the requirement of telephones came down
drastically. Along with that, the government changed its policy and allowed BSNL to
buy the products from any company they wanted. So, BSNL started to call tenders
for supplying of telephones and ITI was allowed to participate in it, but even though
there were private companies that produced telephones at much cheaper costs than
ITI. Hence BSNL gave orders to those private companies which quoted lesser than
ITI. The main reason why ITI couldn’t compete with these companies were because
of the high-quality standards that were set for ITI which cannot be achieved with low
costs like the other companies.

7. 2
With no choice left, the company had to diversify into manufacturing and producing
different products other than just telephones. Currently ITI, Palakkad have various
projects assigned to them such as:
 Biometric Enrolment of NPR (National Population Register) for the purpose of
Aadhar Cards
 Production of Smart Energy Meters
 Production of Portable and Powerful PCs named “Smaash PCs”
 Production of Rocket parts for ISRO (Indian Space Research Organisation)
 Manufacturing of High-Density Polyethylene (HDPE) Pipes for Optical Fibre
Internet connection
 Manufacturing of Printed Circuit Boards (PCBs) for various devices
Departments of the Company
MARKETING -Unni Krishnan, Assistant Engineer
Marketing
The marketing department of ITI focuses basically on convincing the customers to
get the order. During the establishment of ITI Ltd, there was no requirement of
Marketing department as there was a monopoly for the company. Now, due to
various policy changes and other emerging private companies, ITI started incurring
losses and hence marketing department became a crucial aspect of the company in
getting orders. So, Marketing department is the first and foremost section of all as all
the orders should be arranged by the Marketing department. Tenders are applied
and browsed daily in the marketing department. While orders from some huge
organisations are got by directly going and convincing the higher officials.

8. 3
PLANNING -Harimohanan, Planning Officer
Planning is done right after the company gets an order. Then the marketing
department tells the requirement and the order information to Planning department.
The two types of planning that are done in ITI are Material Planning and Production
Planning.
Material planning is related to buying of Raw materials required for the production
and for that the Planning department will send a Purchase Requisition (PR) to the
Purchase Department stating the requirement of so and so materials in order to
produce certain product. There will be different classes of items/materials according
to which the importance of the items are understood and bought accordingly. The
classes for different items are decided based of various factors such as price, rarity,
etc. For Class C items, upto 10% more of the required quantity can be purchased,
for Class B items, 2% to 5% more of the required quantity can be purchased and for
Class A items only the exact quantity should be purchased as it would be of high
value.
In Production Planning, the materials are planned to be bought per weekly needs as
per the production requirement. For this, a Store Requisition (SR) will be filed as only
items needed by the store will be taken. Both the PR and SR should be approved by
three heads of departments.
PURCHASING -N.R.Krishnan, Purchase Officer
The purchase department calculates the requirement of any item by deducting the
on order from the stock in hand. The company purchases items from only a select
few vendors. The purchase enquiry is sent to all the selected vendor list as tender for
quotation. After opening of tender, the orders of different vendors will be sent to
planning department for checking for technical scrutinising. Finally, an order will be
approved by various heads of department including the general manager based on
the price, quality and quantity of the products that they have quoted. After sending
the order to the vendor, and acknowledgement should be done by the vendor. An
EMD (Earnest Money Deposit) should be made by the vendor to the company for the
purpose of security.

9. 4
INWARD GOODS - Krishnan.P, Inward Goods Officer
Goods are stocked here before sending it to their respective stores. The goods that
are received from suppliers are broadly classified into three types, that are Based on
Volume (Delivered by Cargo Services), Electronic items (Delivered by Speed Post)
and Materials from Nearby places (Personal delivery by the company). The main job
of Inward goods department is to do a basic check if the goods are damaged or if
there is a shortage. If found any anomaly, they will inform the purchase department
and they will do the rest. The inward goods department won’t have any direct contact
with the supplier. If there is no damage or shortage in the supplies, an Inward Goods
Service note is issued by the department which involves the quantity received,
passed quantity, rejected quantity, item value, item cost etc. This note is majorly
filled by Quality Assurance department and Inward goods only fills in the basic
details of the supplier and about the requirement. The QA department after filling in
all the needful details after doing an inspection, it sends the note along with the
materials back to the Inward goods from where they are sent to the Store. The
rejected materials will be sent to the rejection store.
QUALITY ASSURANCE - Vasumathi, Asst. Manager QA
The quality assurance department of ITI is divided into four segments which are
Quality of Incoming Supply (QIS), Quality Assurance In process (QAIP), Quality
Assurance Acceptance Test (QAAT) and Quality System Engineering (QS). The QIS
checks the quality of all the incoming supply from top to bottom and then sends the
materials back to Inward Goods. The QAIP is the process where the quality is
checked during each procedure of the manufacturing process. This is done later
when the materials are taken for manufacturing and not when they arrive. QAAT is
the final testing phase and this is where the QA finally check before integrating into
the equipment. The QS is the one of the most important part of the QA department
or ITI as a whole, it is the department which sets the standard of ISO 9001 or ISO
14001 for their products and ITI is known for its quality products.

10. 5
STORE - Alphonsa Thomas, Store In charge
The inward goods send the materials to the store for the final storage. The materials
are stored in a systematic and computerised manner. There are specific locations
inside the store assigned for each type of materials. The shelf life monitoring in ITI is
done by checking its expiry date, receipt and issue note. When Stock Correction
Withdrawal Advice (SCWA) is issued the store is obliged to correct the stock
accordingly. Stocks for Subsidiary Units (SSUs) are the stocks which are sent to the
other plants of it is across India. Quality confirmation is also an important task that is
viewed in the Stores department. Finally, the Delivery Ticket (DT), IGA, Stores
Requisition and Material Transfer Note (MTN) is sent to shipping department
whenever there is a need for the material to be transferred anywhere.
MANUFACTURING - Eldho, Engineer; Josemon, Engineer; Karthikeyan,
Manufacturing Head
As there is various products that are being manufactured in ITI, the manufacturing
process of only one product which is the Smart Energy Meter will be discussed here.
Smart energy meter is a meter used to help consumers and the electricity board to
know the energy consumption remotely from anywhere instead of going to every
house/building individually. It is equipped with various algorithms which is used for
energy calculation and logging it. It is also very secure as it is protected with
username and password, anti-tamper, anti-theft and anti-fraud technologies.
The manufacturing process of the Smart energy meter is as follows:
1) The PCB (Printed Circuit Board) for the meter will be sent from the PCB
department to the manufacturing department (This will be explained under
detail in PCB sub heading)
2) Surface Mount Technology (SMT) Line Process – This is basically the first
step in manufacturing department. The SMT Machine is a fully automated
robotic machine which does not need much human interaction other than just
for confirmation purpose. The machine will first put on the solder paste on the
PCB accordingly in the printed areas based on the algorithm that is installed.
This then goes to the Solder Paste Inspector (SPI) machine with the help of

11. 6
conveyer belt where it checks if the paste is applied properly. Then it goes to
the Component assembly machine where the robotic hands assemble each
and every component precisely. Then it is taken to a 3-D Inspection machine
where it checks for any minute misalignment or defect at the same time
showing the 3-D images in a monitor where the human can check if the
computer detects any anomaly. Then it is taken to the oven for the purpose of
heating the solder and solidifying it into a proper card.
3) Wave Soldering – The leaded components are soldered here using the
advanced nitrogen lead free wave soldering machine.
4) Function testing – The functions of the smart energy meter is tested
individually
5) Quality check – The preliminary quality check of the product is done.
6) Integration & Checking
7) Calibration (Accuracy checking)
8) Final Module – Inserts SIM into the module
COMPONENT SCREENING LAB - Alavi Kutty, CSL Engineer
Component screening lab (CSL) of ITI Ltd is accredited with National Board of
Laboratories (NABL). It is currently undergoing operations for ISRO in making
sensitive Rocket parts like the Combustive Separation Unit which is used in
separating parts while the rocket goes up. CSL activities include crucial screening,
checking and testing various components in different kinds of environments. In
temperatures ranging from -72 degree Celsius to 180 degree Celsius, humidity
ranging from 10% to 98% etc.

12. 7
The process of CSL are:
START
Incoming Material Store
Incoming Visual Inspection
Go/No Go test
Temperature cycling
Serialisation
Pre-Burn in electrical test
BURN IN
Post-Burn in electrical test
Outgoing Visual Inspection
Dehydration baking & Nitrogen Sealing
STOP
COMPUTER CENTRE - Binoy.P.Cherian, Computer Engineer
The computer centre is the place where major activities which involves Information
Technology takes place. The computer centre employees are mostly highly qualified
programmers. The Enterprise Resource Planning (ERP) technology by INFOR is
managed by all the computer centres in all ITI plants. The NPR data are all saved in
the computer centre, which is very sensitive as the details of many citizen is saved
here. Databases are created for various departments over here. Also, the SMAASH
PCs those which are manufactured in ITI are tested here. The computer centre in ITI
is also equipped with lots of servers which serves different purposes. Cloud
computing with about 1500 TB of storage have also been initiated by the computer
centre.

13. 8
ANNUAL MAINTENANCE CENTRE (AMC) & CUSTOMER SERVICING CENTRE
- Johnson Matthew, AMC Manager
AMC is where the customers gets their support from. ITI have a call centre also
known as the Welcome centre which solves each and every problem of their
customer. When a customer calls and talks about a problem with their product, the
AMC immediately books a docket and transfers the call to the necessary section
based on the product, the nature of the problem etc. Then the communication will be
between the customer and the specialised personnel only, the AMC acts as the
mediator. The problems will be then classified into Critical (Cleared within 2 hrs),
Major (24, Minor (Cleared within 60 days) and None. Accordingly, it is to be resolved
within the time period. The second type of maintenance that they do, that is
Preventive maintenance is the most effective method instead of fixing the problem
after it have arisen. The company send their technicians periodically to the
concerned places for timely checking and prevention. The maintenance works
currently are mainly focused on telephone exchanges and ATMs (Communication
system).
The customer servicing centre does the job of repairing MLNN and OCB Cards
(These cards are the ones that is used in lots of telephone exchanges across India).
PCB - Vineeth, PCB Engineer
The processes involved in making a Printed Circuit Board in ITI are as follows:
1) The Raw material for the board, that is Copper Clad Laminate is cut
2) A Pin is drilled into the board
3) CNC Drilling and the pin is removed to separate the board
4) Electrolyse Copper Plating – The board is dipped into a chemical containing
copper. The resulting board will be having a 2-micron level of copper layer
5) Photo Image Transfer (PIT)
 Cleaning
 Lamination of the Card

14. 9
 Exposing (Image of the circuit transferred using UV Light)
 Washing away of unexposed parts
6) Electroplating – Increases the thickness of Copper
7) Copper etching, Film stripped and Tin lead stripped
8) Photo Image Solder massing (PIS) – A polymer natured paste is applied and
dried away using oven. This is done on both sides.
9) Hot air solder levelling
10)Legend printing – The names of components of the board are printed, this is
done to help the user
11)Cut into different PCBs using Spindling machine
12)Quality Checked (QC) – This is done using two types of test, one is
continuous test in which a current is passed through the board continuously
and is tested for durability. And the other is a flying probe test, a special
machine is there for this purpose.
PLANT ELECTRICAL AND MECHANICAL - Thankachan, Mechanical Head;
Preman, Electrical Head
The plant electrical and mechanical department is where all the Air Conditioning,
Powering, Air Compressor, Alternate power supply and Operational Plant Control is
happening. Unlike, normal building, the air conditioning needs are very different in
plants such as ITI. Also, various machinery and equipment would require air
pressure to work, this is where air compressor comes into play. Also, whenever the
power supply of the plant goes down, the Plant Electrical department will be having a
very powerful generator, that can be used to power the whole plant for at least 30
minutes. The maintenance work of this generator as well as the whole electrical and
mechanical works of the company will be taken care by this department.
DOCUMENTATION - Velayudhan, Documentation Officer
The documentation department makes the accessibility of records very easy as all
the records will be arranged in the form of soft copies and hard copies with serial
codes. All the records in the documentation department will be the master copies of

15. 10
technical documents, manufacturing documents (Drawings of circuits, boards etc),
bills of materials etc. As and when required the documents will be sent to the
department after proper approval.
CIVIL - Alice, Civil Engineer
The Civil department does all the works related to the construction, maintenance,
expansion, horticulture, water supply, sewage treatment plant etc. Most of these
works are done through contractors. The rates for all these works given to
contractors are taken from a standard norm known as the DSC (Delhi Schedule of
Rates). The works are allocated to contractors through tenders via the CPP of
Government of India and the ITI website. The approval of management at each
stage is mandatory while giving work.
TECHNICAL R&D - Fakrudeen, Executive Engineer
The technical R&D department works on the live projects like the smart energy meter
and smart cards, and works on them to improve them and provide better customer
experience. Whenever a customer called the AMC and asks for technical help, the
AMC usually transfers the call to this department for better helping the customer.
HDPE - Balachandran, Deputy Manager HDPE
HDPE (High Density Poly ethylene) pipes are a one of a kind pipes used in putting
the advanced fibre wire for delivering high speed internet across homes and offices.
Currently ITI manufactures HDPE pipes for some Internet service providers such as
BSNL. The process of creating an HDPE pipe are:
1) Firstly, a special material called the extruder is put which are of three types
and each one of them produces different kinds of pipes.
2) Jokey/White HDP is added which is the main ingredient of the process.
3) Temperature will be set for 3 hrs, then only work starts
4) Water pressure
5) Cooled

16. 11
6) Printing for colour coding
7) Coiler coils it
The time to produce one pipe varies depending on the length, quality etc.
SHIPPING - Janardhanan, Asst. Engineer67yu68
The shipping process of ITI starts when the Shipping requisition comes from the
planning department. Then, the materials to be shipped will be transferred from store
to the shipping warehouse. The packing will be done here according to the standard
packing procedure. A packing note along with the address of the buyer is made
using a particular format and is given to the sales department for confirmation of sale
and details. Then finally, the packing note along with the SR will be sent to the billing
section in the sales department itself, from where they will make a bill according to
the details in the packing note.
SALES - Sivadasan, Asst. Manager
The Sales department is basically divided into three sections, which consists of GST,
Billing and Sundry Debtors. Basically, the function of the sales is to make bills, apply
for GST and check for any pending payments and redeem them when short on cash.
The SR and packing note is required for making any bill of sale. The price of the
product will be decided by the Marketing department when the order is placed. This
may vary from customer to customer.
IED - Abbas, IED Head
Industrial Engineering Department (IED) is the department where the incentives,
leave applications, travel allowance bill, inter office note, material transfer note,
designing and printing, suggestion schemes etc for the employees are decided. The
incentive scheme is based upon the output. The two kinds of work in ITI are
measurable and non-measurable work. Measurable workers/officers are generally
given indirect incentives and Non measurable workers will be given the direct
incentives. For getting incentive the person should have worked at least 120

17. 12
Standard Man Hours (SMH) per month. After 120 SMH, the employees will get Rs.
3.1 per SMH he works. Maximum incentive per month can be up to Rs. 1000. Then
there are indirect incentives in which if the company gets a turnover of more than 7.5
Cr, then Rs. 150 per person upto Rs. 1000 will be given to every employee. The
people who get direct incentive will also get upto 60% of the Rs. 1000.
ACCOUNTS - Vijayakumari, Asst. Finance Manager
The Accounts department is divided into 3 parts, that is Cash section, Bills
receivables (BR) section and IPA & FPA sections. Working parallel to this are
Budgeting section, Payrolling section and Provident Fund Section. In the cash
section, all the cash dealings are handled such as payments, salaries etc are taken
care of. In the BR section, money to be received is known, they calculate the
turnover based on projects and receipts. BR is one of the main sources of income for
the company. For IPA (Indian purchase), payment through bank to bank by letter of
credit along with customs duty and GST is paid. The FPA (Foreign Purchase)
doesn’t need to have a direct payment like an Indian payment. All of these are
coordinated by the Budgeting section.
Then there is the Payrolling section which gives the payments through rolls to all the
permanent employees after deducting all other expenses of the employees like
interest from loans, PF, etc. Along with it the journal entry is prepared.
After doing a 12% statutory cutting of PF from the Payrolling section, it is sent to the
PF section. Along with that 12% that was cut from the employee’s salary, the
company adds an extra 12% to the PF account of the employee. So, in the end, an
employee will get a total of 24% PF.
HUMAN RESOURCE - Lakshmy, Asst. Manager HR
The employees that are there in the HR department mainly constitutes of IT officers
whose job is issue the notices for meetings, officers & non officers and Public
Relations Officers. The main duties of the HR department are:

18. 13
 Establishment development – Collection of personal details of the employees,
providing extra leaves if necessary, performance appraisal
 Employment Development – Training, CTO/leaves, Punch in data collection
 Personal claims – Travel Allowance, Dearness Allowance, Medical bills,
canteen food, free transportation etc
 Apprenticeship – Provides apprenticeships to students and freshers for
getting on job training.
AUDIT - Shekhar, Asst. Manager Audit
The two types of audit that is done in ITI are the Pre-Audit and the Post-Audit. The
pre audit is done before any purchase order and the post audit is done after the
payments. There will be both physical verification and government verification
involved. The audit can be done at any time without prior mentioning.

19. 14
Process Flowchart

20. 15
Problems Faced
Some of the problems that I have identified in the company that I have visited are as
follows:
 Even though they have world class equipment and high-quality standards, the
company is not getting much orders.
 Many employees are not getting paid even though it is a Central Government
Company
 Employee turnover
 Company is reluctant to hire new permanent employees. Banned
Recruitment.
Observation Analysis
 It was observed that the main reason why the company is not getting enough
orders even though they have good equipment and infrastructure is due to the
rise in Private companies. Since ITI is a Public Limited Central Government
undertaking company it has stringent rules and regulations that it has to
adhere to. And one such regulation that they have to follow is to make ISO
standard high quality equipments only. When other Private company can
make the similar product that serves the same purpose in a lower
manufacturing cost and overall price, all the orders will go to them as they will
be quoting the lowest amount in the Tender.
 Since there is not much orders that the company is getting, the company is
not getting enough profits. When the company doesn’t get profit, the payment
of salaries to its employees gets reduced. Most of the employees are still
staying in the organisation is due to the fact that it is a government
organisation and there are other benefits even though the salary is late.
Most of the employees that I interviewed had one similar thing to say that the
reason for the downfall of ITI is because of the time to time change in
government policies and globalisation. From my observation, it can be said
that the government policies change from time to time and that is inevitable

21. 16
because that’s how the world works, with constant change. The company
can’t expect the situation to be always the same as before. Hence, it is high
time that the company understood that the rise of other companies and the
government’s promotion of other companies is a cue for companies like ITI to
diversify and serve the need of the customer in the most efficient manner.
 Employee turnover is yet another problem whose roots originates from the
other problems. The employees are leaving the company because of its
failure to pay salaries on time, the lack of growth, etc. It can be solved if the
company motivates its existing employees with new orders are hopes for
better future.
 The reluctance of the company to hire new permanent employees is one
problem that is bit deeper than the others. From my observations I can only
infer that the government which manages the company in the high ladder
either doesn’t want the growth of the company or is planning to completely
stop production in the coming future or to change the management to
someone more capable. Whichever may be the case it doesn’t seem to end
well for the company. The only possible solution for this lies in the hands of
the top management of the company, to make the company diversify more
and show that the company is capable of matching with the strengths of the
Private companies. Also, making use of the younger temporary employees
and apprentices to their advantage can also help a lot because the younger
employees are the future of the company and they will be having the most
hindsight.
Conclusion
To conclude, the company which is chose to do the report on Indian Telephone
Industries Limited (ITI Ltd.), even if it have some problems, it have always triumphed
over it and history tells it, from 1947 to 2019, from making simple Telephones to
making High grade Rocket parts for ISRO, it have always been excelling at what it
does, that is “Professional Excellence” – the motto of ITI. It wont got without
recognition and the recent talks with the Military for making Military equipment is a
proof of that.

22. 17