Organization study on visp, bhadravathi

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Organization study on visp, bhadravathi

  1. 1. Visvesvaraya Iron and Steel Plant, Bhadravathi. A REPORT ON “INPLANT TRAINING” AT VISVESVARAYA IRON AND STEEL PLANT BHADRAVATHI SUBMITTED BY Name: DILEEP KUMAR REDDY USN: 1PIO7MBA30 Submitted in partial fulfillment of MBA course to Visvesvaraya technological university Belgaum, Karnataka Internal Guide External Guide DR.G.NAGALINGAPPA R.POORNACHANDRA HOD, SENIOR LECTURER AGM – HRD PESIT-BANGALORE VISP, BHADRAVATHI DEPARTMENT OF MANAGEMENT STUDIES, PESIT 100 Feet Ring Road, BSK III Stage, Bengaluru-560085 Month & Year of submission: September 2008 Department of Management Studies, PESIT Bengaluru 1
  2. 2. Visvesvaraya Iron and Steel Plant, Bhadravathi. ACKNOWLEDGEMENT It is our proud privilege to thank our beloved KUVEMPU UNIVERSITY & VISVESVARAYA TECHNOLOGICAL UNIVERSITY for providing us the unique opportunity to conduct IN- PLANT TRAINING in VISVESVARAYA IRON AND STEEL PLANT, BHADRAVATHI. A special thanks to Mr. A. RANGARAJAN DGM – HRD, Mr. POORNACHANDRA AGM – HRD , Mr. REHAMAN, Jr. Manager- HRD and Mr. Yogeesh, Visvesvaraya Iron And Steel Plant Bhadravathi for providing us an opportunity and for their suggestion in conducting this study over their study. The study will be incomplete without acknowledging our sincere gratitude to all those who have contributed in some way or the other in completing this study. We feel that this note of acknowledgement will not be complete if we do not pay our gratitude to our projects mates, parents and friends who had been a continuous source of inspiration, encouragement and strengths to us. Department of Management Studies, PESIT Bengaluru 2
  3. 3. Visvesvaraya Iron and Steel Plant, Bhadravathi. CONTENTS INTRODUCTION COMPANY PROFILE ORGANIZATTIONAL STUDY 7’S MCKINSEY MODEL FRAME WORK FINANCIAL HEIGHLIGHTS SWOT ANALYSIS BIBLIOGRAPHY Department of Management Studies, PESIT Bengaluru 3
  4. 4. Visvesvaraya Iron and Steel Plant, Bhadravathi. INTRODUCTION Department of Management Studies, PESIT Bengaluru 4
  5. 5. Visvesvaraya Iron and Steel Plant, Bhadravathi. 1. Industrial profile 1.1 General Introduction: Iron and steel are the most important metals. Steel is an alloy of an iron and other materials, iron can be classified as pig iron, cast iron and wrought iron. By various methods including heat treatment and additions of other elements, iron and steel can be made in various degree of hardness. Iron and steel can be softened or melted so that they can be formed into required shapes. Without iron and steel, the way of life of civilized people would be entirely different. They serve everybody in homes, public building, automobile, trains, ships, machinery (which produces almost everything we use in our daily life) bridges, mine, equipments and in a variety of applications that may range from pin to plane. The use of iron and steel in so many ways is possible only because there is an abundance of iron in the earth’s crust and because of prices.Lowcast production is achieved by efficient operation on a large scale of iron and steel industry. 1.2 Industrial background of study In India, references to iron and its uses are found in ancient literary sources like the Rigveda, the Atharvanaveda, the puranas and other epics. In 300 B.C., Chanakya composed his Department of Management Studies, PESIT Bengaluru 5
  6. 6. Visvesvaraya Iron and Steel Plant, Bhadravathi. treaties ‘Arthashastra’ exhibiting a clear knowledge of mineral including iron ores and art of extracting them. The history of modern steel industry in India can be traced back to1907, when the house of Tata’s floated TISCO to produce 1, 20,000 tonnes of pig iron, of which 85,000 tonnes were to be covered to 72,000 tonnes of mild steel. Located at Jamshedpur, in 1911 the TISCO has started to produce hot metals. In 1923, Mysore State set up a much smaller unit, the Mysore Iron and Steel Works Limited (MISWL).In 1936, the steel corporation of Bengal set up a steel plant near Asansole and three years later, tapped its first tonnes of steel, this plant was later amalgamated with the Indian iron and steel company (IISCO).Thus, on the eve of independence, India had three integrated steel plants, TISCO, MISWL and IISCO. By the early 1950’s there were strong markets, which leads to expanding the capacity of existing units also build up new plants in the public sector. In 1953, an agreement was signed with kruoo Demag of Germany to set up 1-MT P/A plant at Rourkela for the production of flat products. In 1956, two other agreements were concluded for setting up a 1: MT P/A plant at Bhilai with the assistantance of USSR and another 1:-MT P/A plant at Durgapur with the assistantance from U.K.The 1 million tonnes steel plant at Bhilai, Durgapur and Rourkela came up in early 1960s as, signifying an achievement, which could be considered as unique for any undeveloped or even developed nation at that point of time. By the end of the 1960’s Bhilai steel plant’s capacity increased to2.5 MT P/A Durgapur Steel Plant to 1.6 MT P/A, and Rourkela Steel Plant to 1.8MT P/A. From the late 1950’s plant were made to set up a public sector unit at Bokaro, in Bihar. The Bokaro projects, how ever, was fraught with delays the USA turned down technical assistantance and funding, the USSR moved in and wanted major changes in specification before supplying technical; expertise and aid.Bokaro steel plant started rolling steel only in 1974-75. 1.3 Origin of industry: The history of man’s use of iron goes back to an ancient era. Reference to iron has been found in ancient fragmentary writings and inscriptions throughout the world. Archaeological studies have proved that mankind has used iron and steel for nearly 6000 years. But the origin of methods used by early men for extracting iron from its ore is unknown with the advance of time, the importance of iron and steel for mankind has gradually increased.Mid of the 19th century, Department of Management Studies, PESIT Bengaluru 6
  7. 7. Visvesvaraya Iron and Steel Plant, Bhadravathi. the formation of new age of steel with the invention of “BASSEMER PROCESS” in 1956. Steel making processes are available in large quantity at reasonable cost. During the first half of 20th century the world’s total crude steel production growth rate was low, but after Second World War the growth rate picked up at a significant rate. During the 70’s the world witnessed one of the most severe economic crisis on account of petroleum oil. This had a pronounced impact on overall economy of the world and the world production of steel declined. During late 80’s the world output of crude steel remained static. In the 90’s due to relatively strong growth in the demand, the production of steel increased rapidly in the developing countries. The credit of establishing the first works in India for producing iron goes to Mr. Health. After the independence, iron and steel was identified as one of the core sector for the economy. In view of its impact on the overall economy, comparatively heavy investment was needed and with its commitment to socialistic pattern of economy, The Government reserved setting up of units in steel industry to the public sector. However, the private sector units like “TISCO” and “IISCO” which already were not only allowed to operate but were given all power to expand their capacity. From the traditional method of extracting iron ore, as is still practiced by certain tribes in Madhya Pradesh, to the modern day Blast Furnace and continuous casting, the history of steel making units of India is a prologue to the story of India’s industrialization. India is the ninth largest crude steel producing country in the world with production of 34.8 million tonnes in 2004-05 but India’s production during the last few years have been growing at a very nominal rate. Keeping in view of size and fact that India is the 2 nd most popular country in the world, but the production level cannot be considered as satisfactory. 1.4 Growth and Development of Industry The steel sector experienced growth of 9% in 1950 and 6% in the 1960’s.however, the growth decelerated to 4-5% during the 70’s and 80’s. The liberalization of the economy has gain sharp rise in the growth of steel sector registering a 7.6% compound rate of growth between 1990-91 and 10% during April to June 2002. Department of Management Studies, PESIT Bengaluru 7
  8. 8. Visvesvaraya Iron and Steel Plant, Bhadravathi. Low plan allocations in later 5-years plan leading to inadequate capacity creation, lack of deistical capacity utilization, and restriction on steel imports due to shortage in foreign exchange led to low growth in this sector during 70’s and 80’s. Amongst a host of restrictions and controls under which steel sector operated, the most significant factor was that of pricing and distribution control .At the time of independence, low price of steel was largely the result of price regulation introduced during 2nd world war. After independence, steel became crucial for economic growth, the Indian government contributed to fix prices considering the interest of consumers and producers. In the initial years, the steel industry was able to earn profit and expand capacity, primarily because of abundant availability of raw material at low price and low capital cost because of low interest rates on soft loans. The 2nd 5-year plan emphasized the importance of iron and steel sector and stated “Expansion of the Iron and steel industry has highest priority”. Since more than other industrial product. The level of production of their material determines the tempo of progress of the economy .In addition, the Industrial Policy Resolution of 1956 stated that the state could assume exclusive responsibility of certain industries that included Iron and Steel. The strategic move to acquire self sufficiency in producer’s goods fostered that the major policy initiatives with regard to steel sector in the 1950’s and 1960’s.The policy environment was based on the accepted belief at that time with regard to export pessimism and rapid investment in core and mother industries, as the only alternative for telescoping the growth process .The non- existence of domestic capital market to finance lumpy investment and containment of monopoly power in the industry, they were the other reason for the tight hold that the government maintained on the steel sector, which persisted up to the beginning of the reform period of 1990’s. 1.5 Present Status of Industry Overall, the Indian steel prices were competitive, in relation to international Prices, up to 1978. However the oil crisis in the early 1970’s initiated a technological transformation of the world steel sector .The new technology also includes quality through higher automation and better process controls. Department of Management Studies, PESIT Bengaluru 8
  9. 9. Visvesvaraya Iron and Steel Plant, Bhadravathi. The Indian steel sector, under pressure of an administered prices regime could not generate resources for modernization and technological up gradation. To add to its woes, the prices of domestic input material started escalating, eroding its competitive edge. The steel sector has responded strongly to the positive stimulus of reform. An apparent consumption of finished steel has increased from 15 million tonnes in 1991-92 to around 23 million tonnes in 1996-97. The domestic steel sector has been able to withstand competition from important producers, despite a steep reduction in customs duty. A number of fresh capacities are likely to be commissioned in the coming years. According to Steel Ministry estimates, India’s per capita consumption of steel is expected to increase to 55-60 kgs by 2010 and over 100 kgs by 2020 and its is targeting an out put of 100 million tonnes by 2020. Investment plans of different companies are SAIL (8 MT) TATA Steel (9.5mt), RAIL (7MT), Essar (1.5MT) JVSL/JISCO (3MT), JSPL (1MT) Uttam (0.5MT), Nilachal Ispat (1MT), bushan (0.3MT), ISPAT (1.7MT) 1.5 SAIL in Expansion Mode “We are embarking on expansion,” says V.S JAIN, Chairman of SAIL, on the Assumption that steel demand and prices continue to remain firm for the next decade. For better product mix, the aim is to raise output of finished steel to 16.6 million tonnes by 2011-12 from the current level of 8.6 million tonnes .In the process, the Percentage of low prices in saleable steel will be reduced to 5%. This will enable SAIL to Achieve 30% market share in flat products and 23% in long product. SAIL ran into a debt trap because its financing is done through a high Debt/equity ratio of nearly 4:1. SAIL still has about Rs.7000 crores debt outstanding, although in the last 3 years It has managed to reduce the debt by about Rs.8000 crores due to heavy demand and good Prices and bring its debt/equity ratio to less than 1:1 from FY 05 onwards with higher value Product profile in the offing, SAIL financial future appears to be very bright. Presently, India has seven integrated steel plants, of these six are in public sector under the SAIL and 7th TISCO is the private sector. The Products of the integrated steel plants have been designed to serve the diverse sector of our economy. Approximately 40% of the steel produced by these plants goes to meet the demand of civil construction, 50% to the engineering industry, 10% to the miscellaneous industry including nuclear, space and other strategic areas. Department of Management Studies, PESIT Bengaluru 9
  10. 10. Visvesvaraya Iron and Steel Plant, Bhadravathi. 1.6 Leading Players Some of the leading steel producers of India are • Steel Authority of India (SAIL) • Tata Iron and Steel Company (TISCO) • Rashtriya Ispat Nigam Limited (RINL) • Essar Steel, Jindal Vijayanagar Steel Limited (JVSL) 1.7 Future Prospects of Industry According to government estimates, India’s per capita consumption of steel is Expected to increase to 55-60 kg by 2010 and over 100kg 2020 and its is targeting an Output of 100 million tones by 2020. By 2012, the consumption of steel in India is expected to reach around 55-60 million tones (MT), nearly double the current level. The SAIL is planning to increase hot metal production from its plant to a level of about 20 million tones p/a (MTPA) by 2012 against the current level of 13 MT. For crude steel production, SAIL is planned to reach a level of 18.7 MTPA by 2012 from the current level of 11.83 MT (achieved in 2003-04) STEEL AUTHORITY OF INDIA LIMITED Background & History Department of Management Studies, PESIT Bengaluru 10
  11. 11. Visvesvaraya Iron and Steel Plant, Bhadravathi. The Precursor SAIL traces its origin to the formative years of an emerging nation - India. After independence the builders of modern India worked with a vision - to lay the infrastructure for rapid industrialization of the country. The steel sector was to propel the economic growth. Hindustan Steel Private Limited was set up on January 19, 1954. The President of India held the shares of the company on behalf of the people of India. Expanding Horizon (1959-1973) Hindustan Steel (HSL) was initially designed to manage only one plant that was coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and Steel Ministry. From April 1957, the supervision and control of these two steel plants were also transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to Calcutta in July 1956, and ultimately to Ranchi in Dec 1959. A new steel company, Bokaro Steel Limited, was incorporated in January 1964 to construct and operate the steel plant at Bokaro. The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end of December 1961. The 1 MT phase of Durgapur Steel Plant was completed in January 1962 after commissioning of the Wheel and Axle plant. The crude steel production of HSL went up from .158 MT (1959-60) to 1.6 MT. The second phase of Bhilai Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned in February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73. Steel Authority of India [SAIL] is the leading steel making company in India. It is a fully integrated iron and steel maker, it produces both basic and special types of steels for various purposes and this steel is used in the domestic, engineering, power, railway, automotive and defense industries and for sale into export purpose. On the 24th January, 1973 Steel Authority of India Ltd was formed for managing the steel plants at the Bhilai, Bokaro Department of Management Studies, PESIT Bengaluru 11
  12. 12. Visvesvaraya Iron and Steel Plant, Bhadravathi. COMPANY PROFILE Department of Management Studies, PESIT Bengaluru 12
  13. 13. Visvesvaraya Iron and Steel Plant, Bhadravathi. VISL AT A GLANCE Visvesvaraya iron and steel limited[VISL] is situated at Bhadravathi, a small town 260 km north west of Bangalore on Bangalore-Honnavar road in Karnataka. Bhadravathi is easily approachable by both road and rail. VISL is on the bank of Bhadra River covering an area of about 3.8 sq km. the total area of steel town is 5.0 sq km. The MPM is another paper making industry having a long history and it is the one of the first industry that made use of bamboo principal raw material for paper making. Benkipura is the name of the infamous place where sir. M. Visvesvaraya engineered to set up the iron and steel under his grand slogan “INDUSTRIALIZE OR PERISH”. This infamous village is now known as famous industrial town “Bhadravathi”. Iron is one of the most important metal steel is an Alloy of Iron and other materials without Iron and Steel, the way of life of civilized people would be entirely different. The use of Iron and Steel in so many ways is possible only because there is abundance of iron ore in earth’s curst, And because there metals can be furnished to the manufactures at reasonable prices. By various methods including heat treatment and additions of other Alloys such as Molybdenum, chromium, nickel vanadium etc., Steel can be made in various qualities with different properties. Iron and Steel can be softened or hardened so that they can be formed in required Shapes and sizes. The people use steel in thousands of ways. They serve everybody in houses, public buildings, automobiles, transportation, ships, machinery (which produce almost everything we need in our daily life) bridges, mines form equipment and in a variety of applications that may range form pin to plane. Low cost production is achieved by efficient operation on a large scale of Iron and steel industry. Department of Management Studies, PESIT Bengaluru 13
  14. 14. Visvesvaraya Iron and Steel Plant, Bhadravathi. HISTORY OF VISP: Visvesvaraya Iron and Steel Plant, the latest addition to the stable of Steel Authority of India Limited is located at Bhadravathi, 260 kilometers north- west by the river Bhadra on three sides. The Plant covers an area of about 3.8 square kilometers and employs 2828 persons as on 1.10.2007. The Steel Town covers an area of 4.5 square kilometers. The vision and foresight of late Sir M Visvesvaraya, the then Dewan of Mysore, resulted in the setting up of “Mysore Wood Distillation and Iron Works” in 1918. It became a limited Company in 1962. As a tribute to its illustrious founder, the company was renamed “Visvesvaraya Iron & Steel Limited” (VISL) on February16, 1976. An Engineer-Statesman par excellence, he perceived Bhadravathi as an ideal location for the plant amidst the forests of Shimoga. Starting as a Wood Distillation Plant in 1918, the Mysore Iron Works commenced Pig Iron Production in a charcoal Blast Furnace in 1923 to produce 60 tones of Pig Iron per day. A Pipe Plant was installed in 1927 to make profitable use of the Pig Iron thus produced. Mild steel production was started in 1936 and in the same year the name of the company was changed to Mysore Iron & Steel Works. Production of Ferro-Alloys began in 1942 with the addition of two small furnaces and the production capacity was augmented subsequently in 1962. Mild steel production capacity was also expanded in 1965 with the addition of two LD converters, one Electric Arc Furnace and a Blooming and Heavy Section Mill. The plant was expanded further and diversified into the field of Alloy and Special Steels production in 1965 with the addition of Electric Arc Furnace, Combined Bar and Rod Mill and Central Heat Treatment Shop. Subsequently a modern Forge Plant was established in 1977 to produce high Alloy Steels like High Speed Steel, Tool Steels, Die Block Steel and Value Steel etc. Visvesvaraya Iron and steel Ltd., is a loading producer of alloy and special steel and ferro alloys in India started in 1918 VISP has carved a niche for itself in the field of Alloy and Special Steels in the country. It takes care of requirement of strategic sectors like Defence, Nuclear Power Corporation, Railways etc. VISP is producing Alloy and Special Steels since 1966 and has kept pace with the developments by quickly adopting Department of Management Studies, PESIT Bengaluru 14
  15. 15. Visvesvaraya Iron and Steel Plant, Bhadravathi. newer technologies to meet the requirements of the day and has always remained in the forefront as quality steel producer in the country. As a long term strategy VISP installed one 530 Cu. M Blast Furnace in 1995 to produce hot metal of right quality so as to take the full advantages of BF- BOF-LRF-VD route in the production of Alloy and Special Steels. To sustain as a leading premier Alloy and Special Steel producer short and long term modernization proposals are in various stages of consideration. VISP has carved a niche for itself in the field of Alloy and Special Steels in the country. It takes care of requirement of strategic sectors like Defence, Nuclear Power Corporation, Railways etc. VISP is producing Alloy and Special Steels since 1966 and has kept pace with the developments by quickly adopting newer technologies to meet the requirements of the day and has always remained in the forefront as quality steel producer in the country. The plant was expanded further and diversified into the field of Alloy and Special Steels production in 1965 with the addition of Electric Arc Furnace, Combined Bar and Rod Mill and Central Heat Treatment Shop. Subsequently a modern Forge Plant was established in 1977 to produce high Alloy Steels like High Speed Steel, Tool Steels, Die Block Steel and Value Steel etc. With this, the production capacity of Alloy and Special Steels went up to 77,000 tones per year. VISL TODAY: VISL today is striving to provide world class quality products and services to the customers. The company had technical collaboration for 12 years with m/s bohler`s of Austria, the world leaders in the production of alloy and special steels. The technical staff of the company has been trained at various plants of m/s voest alpine, Austria, one of the leading alloy steel producers in Europe. Total quality management has been launched with full vigour since 1991. The company has been accredited to ISO-9002 certification for forged/rolled products and pig iron from RW-TUV of Germany VISL became a subsidiary of steel authority of India ltd in 1989. VISL has acquired access to the expertise and research and development. Facility of one of the largest producers of steel in the world. Department of Management Studies, PESIT Bengaluru 15
  16. 16. Visvesvaraya Iron and Steel Plant, Bhadravathi. A major department, which is running in the VISL steel industry, is written below- 1. Safety, PPC, Mines & Traffic department. 2. Raw material handling & Blast furnace.[BF] 3. Steel making shop [SMS] & oxygen plant. 4. Primary mill & Bar mill. 5. Heat treatments shop [HTS] & forge plant. 6. M/c shop, St, shop & general foundry. 7. Quality, TQP & Environment. 8. Marketing department.[MS] 9. Finance department.[FS] 10. Legal wing & personnel department. 11. Human resource department.[HRD] 12. Others VISL has modern infrastructural facilities for producing high quality alloy and special steels. The steel is produced through blast furnace- basic oxygen furnace- ladle refining furnace- VD route, continuous casting machine[CCM], automatic billet grinders, modern rolling mills, electrochemically controlled forging machine & sophisticated quality control equipment. VISL has the distinction of being the only alloy and special steel plant having integrated facilities starting from mining of basic raw materials such as iron ore, lime stone to finished rolled and forged bars and billets. Department of Management Studies, PESIT Bengaluru 16
  17. 17. Visvesvaraya Iron and Steel Plant, Bhadravathi. MILESTONES 1918 Construction work started for setting up a Wood Distillation plant of 200 tonnes per day and one Charcoal based Blast Furnace of 60 tonnes per day. 1923 Mining of Iron Ore started in Kemmangundi Iron Ore Mines, a captive mine of the Company. (Production of Pig Iron started in Charcoal Blast Furnace.) General Foundry commissioned. 1927 Pipe Foundry commissioned. 1936 Steel making through Open Hearth ‘A’ Furnace started Light Selection Mill for rolling structural steels started. 1938 Cement plant Commissioned 1942 Steel Foundry commissioned. Two 1500 KVA Ferro Alloy Plants started at Mysore. 1943 Open Hearth ‘B’ Furnace started. 1948 Plate Sleeper Foundry commissioned 1950 Ferro Alloy Plant shifted to Bhadravathi from Mysore. 9000 KVA Ferro Silicon Furnace started. 1952 First 100 tonnes per day capacity Electric Pig Iron Furnace started. 1955 Second 100 tonne per day capacity Electric Pig Iron Furnace started. 1958 Cast Iron Spun Pipe Plant started. Department of Management Studies, PESIT Bengaluru 17
  18. 18. Visvesvaraya Iron and Steel Plant, Bhadravathi. 1962 Two 12000 KVA Ferro Silicon Furnace started. Works became a limited company on April 1, 1962. Sintering Plant started at Tanigebyle. 1964 Blooming and Heavy Section Mill commissioned. Plate sleeper Foundry started. 1965 LD Plant started. First 20 tonnes Electric Arc Furnace commissioned. Oxygen and LC plant started. 1966 6 tonne EAF started at Steel Foundry. Induction Furnace started at General Foundry. New Refractory Department started. 1967 Second 20t Electric Arc Furnace started. 1968 IAS & ICS Commissioned. 8t Electric Arc Furnace started. 1970 Combined Bar and Rod Mill started. 1971 Two new 200t per day capacity Electric Pig Iron Furnaces started. 1972 Heat Treatment Shop started. 1976 Name of the Company changed to “Visvesvaraya Iron and Steel Limited” on February 16, 1976. 1977 Forge Plant commissioned with Long Forging Machine and Forge Press. 1983 VD/VOD Unit Started. 1985 CCM Commissioned. Department of Management Studies, PESIT Bengaluru 18
  19. 19. Visvesvaraya Iron and Steel Plant, Bhadravathi. 1989 VISP was taken over as subsidiary of SAIL. 1992 LRF 1 commissioned. 1997 Certified to ISO 9002 for Rolled Route and Pig Iron in April 1997. 1998 VISP merged with SAIL in Dec 1998. 1999 Installed three numbers Electric Heating Tempering Furnaces. 1999 Electro Magnetic Stirrer commissioned at CCM Plant on 15.9.1999. 2003 Upgraded to ISO 9001-2000 Quality Management System. 2005 Conversion of II 20 T EAF to LRF 4. 2007 Upgraded to technical standard of TS16949-2002 which is required for selling steel to automobile industry Department of Management Studies, PESIT Bengaluru 19
  20. 20. Visvesvaraya Iron and Steel Plant, Bhadravathi. INFRASTRUCTURAL FACILITIES: VISP is a huge plant; it covers 3.8 Sq kms area. It has been providing infrastructural facilities like, • Accommodation for employees at lower rates. • One Guest House • One club • VISP Town Administration office • VISP Hospital • VISP Silver Jubilee Stadium. • VISP Platinum Jubilee Stage • Ispat club for executives • Gents club for both executives and non executives • Officers association • Workers association • 8 Education Institutions • 2 Parks and cultural Exhibition. Department of Management Studies, PESIT Bengaluru 20
  21. 21. Visvesvaraya Iron and Steel Plant, Bhadravathi. Vision, Mission & Quality policy Vision of visl 1. To be a respected world class corporation and the leader in Indian steel business in quality, productivity and profitability, customer satisfaction. 2. To achieve an international competitiveness through satisfaction of customer needs by continuous improvement in the quality, cost and dispatch. Mission of visl To develop iron melting plants as a safe, environmentally green and economically viable sources of alloy and special steel to meet the growing need of the country. Quality policy To achieving total customer satisfaction by, • Providing products and services that meet or exceed customer expectations. • Continual improvement to our quality management system and processes. • Fostering the professional development of our employees. Department of Management Studies, PESIT Bengaluru 21
  22. 22. Visvesvaraya Iron and Steel Plant, Bhadravathi. ORGANIZATTIONAL STUDY Department of Management Studies, PESIT Bengaluru 22
  23. 23. Visvesvaraya Iron and Steel Plant, Bhadravathi. Human Resources Development (HRD) Head of P & A DGM HRD Senior Manager (HRD) 3 Senior Administrative Assistants HRD KENDRA HRD concentrates on developing people through training with the objective of changes in knowledge, skills and attitudes, resulting in changes in job performance and ultimately changes in organizational effectiveness. Emphasis is given to need based training with the active guidance from the corporate office, SAIL and MNTI, Ranchi. HUMAN RESOURCE DEVELOPMENT Resource is any means of supply which ca be drawn on when necessary. To develop means to grow, mature and make progress in the desired direction. Developing a human being in to a resource means making him or her into a person of resourcefulness, initiative wittedness, cleverness talent and ability. Human Resource Development is considered to be a super specialty of HRM. It is a process by which the employees of an organization are helped in planned and Department of Management Studies, PESIT Bengaluru 23
  24. 24. Visvesvaraya Iron and Steel Plant, Bhadravathi. continuous manner to acquire new capabilities and sharpen existing capabilities, that may be required to perform their present functions or expected future voles. HRD is a process which is geared towards developing the general enabling capabilities of employees as individuals so that they can discover and exploit their own inner potential for their own and / or organization development purposes. HRD strives to develop an organizational culture where superior subordinate relationships, team different sub units are strong and contribute to the organizational health, dynamisms and pride of employees. Training programs are as follows: • FRESH ENTRANTS  Induction and orientation • COMPETENCE ENHANCEMENT  Technical  Multi skill training  Managerial • SPECIFIC AREA  Safety  Environment  Cost control and deduction  Quality • EXTERNAL TRAINING • OTHER AREAS  Hindi training GOALS OF HRD: • Development of individual capacity • Development of competitive in relations job being performed Department of Management Studies, PESIT Bengaluru 24
  25. 25. Visvesvaraya Iron and Steel Plant, Bhadravathi. • Development of corporate approach • Development interpersonal relationship • Development of overall organization culture Why do we need HRD • Organization is a group of people and the people have high potential resources. • To optimize these resources and make organization more effective it is necessary to have HRD system. Role of HRD: • Human resources planning • Human resources accounting • Human resources allocation and role planning • Human resources training and development • Human resources maintenance • Climate development of HRD Activities of HRD Training need identification 1) Training need assessment 2) Training need justification 3) Budgeting and controlling of cost 4) Selection of learning process 5) Planning, designing, conducting the training procedure 6) Evolution of program through, the trainee and feed back records Training Objectives:- 7) To help the trainee 8) To improve knowledge, skill, attitude & performance. 9) To develop competence to increase productivity. 10)To prepare for greater responsibility. 11)To improve interpersonal relationship. 12) To equip with modern tools & techniques of to harness best the human resources and maintains industrial harmony. Department of Management Studies, PESIT Bengaluru 25
  26. 26. Organization structure ED GM (services) GM (services) GM GM(Mktg) (P&A) DGM- DGM-I/C DGM- AGM-PR AGM-IAD AGM-VIG PROJECTS FINANCE & MTRLSMGT & ACVO A/C AGMs Mktg DGM-Pers & HRD DGM(Town) Jt..Dy Dir Manager-Legal M&Hs AGM(Town & sec) AGM(Pers) Sr.Manager- DGM- AGM-PPC Department of Management Studies, PESIT Bengaluru CSR Sr.Manager-Town MINES & DGM DGM-TQP RAW QUALITY EVD& MATERIAL SAFETY. S EVD& SAFETY. Y DGM MOVE UTILIT MENT& DGM-BF(OPRN) AGMI/C MILLS AGM-FP DGM (OPRN) AGMI/C FS Visvesvaraya Iron and Steel Plant, Bhadravathi. ELECTRICAL AGMI/C HTS-OPRN MAINTENANE MECHANICAL MAINTAINANCE 26
  27. 27. Visvesvaraya Iron and Steel Plant, Bhadravathi. PRODUCTION DEPARTMENT  BLAST FURNENCE  STEEL MAKING SHOP  ROLLING MILLS  FINISHING SHOP  HEAT TREATMENT SHOP  FOUNDRY  SOURCES OF APPLICATION  MATERIAL MANAGEMENT Department of Management Studies, PESIT Bengaluru 27
  28. 28. Visvesvaraya Iron and Steel Plant, Bhadravathi. BLAST FURNACE Blast furnace is tall is cylindrical shaped furnace built with steel plates. Usually it has height of 30 to35meter.It is lined inside with fire bricks having the thickness of 0.5meter.As we move down from top the diameter continuously increases and at the widest portion called Boshe, the diameter is about 8 meter .the diameter again decreases. At the height of 3 to 4 meter from the bottom water cooled pipes called Tuyeres are fixed. Blast of hot air is sent into the furnace through this pipes. The bottom portion is cylindrical and has two outlets. The lower one is the tap hole for cast iron and upper one is for slag. A 530 CM3 blast furnace “Cauvery” built in-house with indigenous technology by SAIL is producing hot metal to the rated capacity of about 600 Tonnes/Day. There are 2 pig casting machines for the production pig iron. Blast Furnace at Bhadravathi is the first furnace in India, designed and commissioned by Indians. Blast is the hot air and Furnace is the equipment, which basically provides heat. The raw Materials are Iron ore, Coke, Lime stone, Dolomite, Donite are charged to the Furnace in various proportion and hot air is fed from bottom. Here Coke is the fuel and act as a reduction agent. When the hot air is fed, carbon gets reduced with oxygen to produce carbon Monoxide and carbon dioxide. And when this carbon Monoxide and carbon dioxide reacts with the Iron Ore i.e., Hematite at the temperature of 915o c, the Hot metal is produced and the byproduct formed is slag, which is used in production of cement cost of producing 1 tonne of hot Metal amounts to Rs.11000–Rs.12000. For producing 1 tonne of hot metal, the mix of raw Materials is as follows, Iron Ore-1400 Kg, Coke-700 Kg, Lime stone, Dolomite, Domite -400 Kg Department of Management Studies, PESIT Bengaluru 28
  29. 29. Visvesvaraya Iron and Steel Plant, Bhadravathi. PROCESS FLOW DIAGRAM Blast furnace Cast Iron Foundry Pig Casting Machine Mixer Basic Oxygen Furnace Laddle Reffining Furnace VD/VOD Continuous Casting PG Ignots Up-Hill Teeming Forging at forge Rolling at primary Mill plant Disposition Disposition Inspection at Treatment Bar Mill Inspection Metallurgical Test Straightening Processing at Vendor Inspection Dispatch Department of Management Studies, PESIT Bengaluru 29
  30. 30. Visvesvaraya Iron and Steel Plant, Bhadravathi. STEEL MAKING SHOP VISL steel making shop has two basic oxygen furnaces (BOF’s) of 17 tonnes capacity each, 120 T electric arc furnace, 3 No’s. 22 tonne ladle refining furnaces, vacuum degassing/vacuum oxygen decarburizing unit, 2 strand continuous casting machine are available to produce highly sophisticated clean steel. The steel is tested for quality at our modern chemical laboratory equipped with computerized spectrometer The hot metal is taken out of the blast furnace then it is stored in Mixer, which is having the capacity of 450 tonnes to reduce the silica content, and maintain homogeneity. Then this Metal is charged to the converter, which is having the capacity of 20 tonnes. Here the air is blown to the converter and Burnt lime and Dolomite is added to reduce the carbon, phosphorus content etc. After this, the Metal is charged to Ladle refining Furnace. Here various alloys are mixed to the hot metal according to the requirements of customers. Then sample is sent to spectral lab for testing and again the adjustments are made if required. After making the adjustments of various Alloys, the next process is vacuum Degassing (VD). Here the steam is given to remove hydrogen from the metal. Now, the temperature will get reduced after VD process, so to reheat the metal i.e., above 1600o c, the metal is again transferred to LRF’s. Next the metal is passed through either cooling zone to make CCM Brooms, or it is tapped to the moulds of Ingots. Department of Management Studies, PESIT Bengaluru 30
  31. 31. Visvesvaraya Iron and Steel Plant, Bhadravathi. OXYGEN PLANT It is nothing but separation of oxygen from the atmosphere by removing other impurities. The oxygen boiling point is 186c and the nitrogen boiling point is also same, the atmospheric air is cooled then nitrogen oxygen get separated, Nitrogen is lower in weight so it collects in the top and o2 settles at the top. Uses of oxygen and nitrogen 1. Oxygen is supplied to various departments particularly in SMS for cooling purpose. 2. Nitrogen is used as a fuel. 3. Liquid Nitrogen is used in medical field. 4. Oxygen is used to increase the life of the converter. ROLLING MILLS: This section may be called as semi finished product-producing section. Here various shapes are given to ingot/continuous casting blooms. In this mills heated ingots are pressed between heavy rollers to produce rolls of thin sheets as per the customer requirements. PRIMARY MILL VISL is equipped with a blooming and heavy section mill to roll sizes 60 to 140MM rounds and round corner squares. There are two pusher furnaces and two cell soaking pits, one single stand 3 high 720 dia, 3 stand 3 high 600 dia finishing mills and 500 T’s shear. Department of Management Studies, PESIT Bengaluru 31
  32. 32. Visvesvaraya Iron and Steel Plant, Bhadravathi. The primary mill production capacity is 6000 to 8000 tonnes per month. In primary mill the production chart are maintained shift wise, showing budgeted production and actual production per day, month and year. BAR MILL The mill is equipped to produce alloy steels sizes between 20 to 56 mm rounds, 40 to 56mm rounds cornered squares and spring steel flats. The mill has two walking hearth furnaces with automatic weighing and feeding of billets to furnaces. The mill has one single stand, three high 520mm roughing mill, one four stand, 3/2 high 440/420 mm finishing mill with water descaleing units. Bar mill rolls products into the following types: A. Rounds B. Flats C. Squares HEAT TREATMENT SHOP VISL is equipped with necessary heat treatment facilities to supply alloy and special steels in normalized, annealed, spheroidized annealed and hardened and tempered conditions. The details of Heat Treatment Furnaces are: 1. Annealing furnace – Oil /gas fired -11 No.s 2. Hardened furnace – Oil fires -2 No.s 3. Tempering furnace – gas fired – 1 No.s 4. Tempering Furnace -- Electric – 1No.s Department of Management Studies, PESIT Bengaluru 32
  33. 33. Visvesvaraya Iron and Steel Plant, Bhadravathi. Annealing, normalizing, spheroidized annealing, hardening and tempering process area adopted to achieve desired micro structure, hardness and metallurgical properties for heat treated steels. The finishing process includes straightening, shot blasting bar feeling, and testing like magna flux, ultrasonic. The final finished products are 100% spark tested to ensure that the material is free from mix-up; a mobile spectrometer is available for product testing. FINISHING SHOP Surface inspection of rolled, forged products is done in finishing shops. Surface conditioning is done manually and by grinding machine to remove surface defects. In addition, ultrasonic test is also being carried out, to detect any defects below the surface. FORGE PLANT The forge plant is equipped with 1600T modern Hydraulics press with 12T rail bound manipulator, one horizontal long forging machine. It is highly sophisticated plant and the pride of the Company. Value added items viz. die blocks, high speed steels, tool steels, stainless steel in range of 60MM to 600MM are main products. In this shop, steel materials are forged. Forging means giving shape to material according to customers demand. Steel ingots are heated and hammered or pressed to the desired shape on a forging press or hammer. This process changes the structure of steel ingots. It will improve strength to the steel. Here most of the Department of Management Studies, PESIT Bengaluru 33
  34. 34. Visvesvaraya Iron and Steel Plant, Bhadravathi. work is done on the automatic machines; the process followed is heating the ingots in a large furnace and then hammering or pressing them to desired shape. Structural Shop In this section almost all the type of equipments used in the VISP are manufactured and repaired. Some of the equipments manufactured in structural shop are: 1. converter 2. Laddle 3. BF viberator screen 4. VD covers 5. Lifting table 6. Drilling Machine 7. Gates General foundry In this section ingot moulds, slag pots, trumpets and teaming plates are manufactured, sanding moulds method is used for manufacturing ingot mould and slag pots. Permanent casting mould method used for manufacturing trumpets Green sand moulds: Sea sand + molasses + Bentonite powder Ingot Moulds: Dry sand + red earth + Molasses + Sea sand + River sand. Department of Management Studies, PESIT Bengaluru 34
  35. 35. Visvesvaraya Iron and Steel Plant, Bhadravathi. QUALITY Quality assurance for metallurgical tests: 1. INCLUSION RATING 2. GRAIN SIZE 3. DECARBURIZING 4. MICRO STRUCTURE 5. MACRO STREAK FLAW/ STEPDOWN 6. BLUE FRACTURE 7. JOMINEY END QUENCH/ HARDENABILITY 8. HARDENED FRATURE 9. HEAT TREATMENT RESPONSE 10. HARDNESS 11. TEXTILE 12. IMPACT 13. BEND. Department of Management Studies, PESIT Bengaluru 35
  36. 36. Visvesvaraya Iron and Steel Plant, Bhadravathi. TOTAL QUALITY PROCESS The following basic principles of to achieve TQM and ISO for any organization. 1. Customer Focus- Anticipation of future requirements. 2. Leadership – Motivate his team. 3. Process Approach- Value added activity. 4. System Approach- Collection of Process. 5. Involvement of people- How to motivate the people to achieve the desired goal. 6. Continual improvement- 7. Factual Approach to decision making – go by facts, don’t go by opinion. 8. Mutually Beneficial Customers relationship Department of Management Studies, PESIT Bengaluru 36
  37. 37. Visvesvaraya Iron and Steel Plant, Bhadravathi. MARKETING  PRODUCTS OF VISL:  GRADES MANUFACTURED:  MAJOR CUSTOMER:  MAJOR COMPETITORS:  PRODUCT RANGE:  ALLOY AND SPECIAL STEELS: • VALUES ADDED PRODUCT. • STAMPED ITEMS. • PIG IRON.  FORGED PRODUCTS: • PRESS. • LONG FORGEING MACHINE. Department of Management Studies, PESIT Bengaluru 37
  38. 38. Visvesvaraya Iron and Steel Plant, Bhadravathi. Marketing Department Marketing is a systematic function and it has its own importance in every organization. Main objectives of marketing department in VISP are to identify customer’s needs and satisfies their needs. It is the process of buying and selling mainly based on demand and supply analysis. Before liberalization, “producer” controlled the market. He took the decision about the price, quality etc. Now trend has changed, “customer” is the king in the market and satisfying the customer needs is main objective of the organization. Department of Management Studies, PESIT Bengaluru 38
  39. 39. Visvesvaraya Iron and Steel Plant, Bhadravathi. Before the liberalization, marketing of steel was very easy as steel was a controlled commodity. Now in the era of LPG, it is a free market and customer dictates the market. VISP produces special steel and alloy. It sells its products directly to the customers. It does not have any channels of distribution for selling its product. It has branches in various areas like Bangalore, Calcutta, Pune, Delhi, Mumbai, and Nagapur. Pune branch has a very large branch. The branch manger receives all the enquiries from the customer and sends it to marketing department. Any rejection that takes place due to low quantity, quality etc, which is handled by branch managers. Finished goods of VISP are raw material for other company. They adopt integrated marketing procedure. It produces goods only after getting the order from customer. MAJOR CUSTOMERS • Defense units • Railways • SAIL units • Engineering industries TATA ESCORTS BHEL BEML • Automobiles / Foreign industries Department of Management Studies, PESIT Bengaluru 39
  40. 40. Visvesvaraya Iron and Steel Plant, Bhadravathi. MAIN COMPETITORS ISSAL, Pune KALYANI CARPENTER, Pune KALYANI HOSPET, Hospet A.S.P. Durgapur MUKUND, Mumbai TISCO, Jamsedpur MUSCO, Mumbai STARWIRE, Faridabad SUNFLAG, Nagpur FACOR, Nagpur RINL, Vizag SISCOL, Sale Market Segmentation Market segmentation means dividing the market into different segments or sector in VISP the market segmentation is on the basis of customers wise and product wise. By Customer-wise • Defense Sector • Railway Sector • Auto and Forging Sectors • Engineering Sector • Trade Sector • Power Sector • Steel Plant Department of Management Studies, PESIT Bengaluru 40
  41. 41. Visvesvaraya Iron and Steel Plant, Bhadravathi. • Earth Movers By Product-Wise • Alloy and Special Steel • Pig Iron Basic grade (Si up to 1%) Foundry grade (Si > 1%) • Scrapes Slag, Coke Breeze, Iron Ore Fines New Product and Design VISP is only concentrating on special steels and alloy. It produces steel in different quantities and qualities according to customers needs. Here they do not concentrating new product development and design of the product it gives more important to the value added product that is to lengthy process. Distribution Channel VISP does direct marketing, it sell goods directly to consumer. It has no other marketing channel. But some times buys product and sell to their customer. And VISP has its branches other than Central Marketing Organization (CMO) of SAIL, in different area and through these branches they get orders from customers. Department of Management Studies, PESIT Bengaluru 41
  42. 42. Visvesvaraya Iron and Steel Plant, Bhadravathi. MARKETING NETWORK OF VISP       New Ahmedabad S/Y S/Y Delhi (SAIL) (SAIL)     Calcutta Mumba   i Marketing HQ BDVT     Pune  Chennai   Bangalore S/Y (VISP) S/Y (SAIL) Department of Management Studies, PESIT Bengaluru 42
  43. 43. Visvesvaraya Iron and Steel Plant, Bhadravathi. PRODUCTS OF VISL  Rolled Alloy & Special Steels.  Forged Alloy & Special Steels  As Cast Alloy & Special Steel.  Concast Blooms.  As Cast Alloy & Special Steels Ingots.  Pig Iron – Basic & Foundry Grade.  Granulated Slag.  Liquid Nitrogen PLAN SUMMARY PRODUCTION & SALES (Units: Tones) Item Production Sales APP APP 2008-09 2008-09 Hot Metal 280000 - Liquid Steel 193500 - Saleable Steel 164000 174550 Pig Iron 54000 54000 Sales Turnover 1222.44 (Rs in Crores) Department of Management Studies, PESIT Bengaluru 43
  44. 44. Visvesvaraya Iron and Steel Plant, Bhadravathi. PRODUCTION 300000 250000 200000 HOT METAL 150000 LIQUID STEEL 100000 SALEABEL STEEL SALES TURNOVER 50000 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr SALES 200000 150000 HOT METAL LIQUID STEEL 100000 SALEABEL STEEL 50000 PIG IRON SALES TURNOVER 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Department of Management Studies, PESIT Bengaluru 44
  45. 45. Visvesvaraya Iron and Steel Plant, Bhadravathi. ALLOY & SPECIAL STEEL SALES DURING 2007 -08 SECTOR WISE SECTORWISE ABSTRACT 2007-08 M.S. BILLETS 2% STEEL PLANTS 4% RAILWAYS 2% TRADERS 11% CUSTOMER INGOTS DEFENCE UNITS 6% 10% PUBLIC SECTORS 5% ENGG. INDUSTRIES 13% BALL BEARING INDUSTRIES AUTO / FORGING UNIT 3% 44% Department of Management Studies, PESIT Bengaluru 45
  46. 46. Visvesvaraya Iron and Steel Plant, Bhadravathi. MATERIAL MANAGEMENT Materials management activities in an industrial Organization consists of all subsets activities such as purchasing transporting. Storing and handling of the materials. Materials Management in VISP is mainly consisting of four sections  Raw materials section  Purchase section  Central stores section  Refractory section RAW MATERIALS SECTION Raw materials section mainly deals with the receipt, issue and storage of the materials from the supplier and then makes a necessary inspection, if they are according to the order then they issued to concerned department. Normally, the Purchase section. Purchase has to be done on the basis of specification which emerge out of an engineering design are are on the basis of the recommendations of major equipment manufactures. Department of Management Studies, PESIT Bengaluru 46
  47. 47. Visvesvaraya Iron and Steel Plant, Bhadravathi. Process of functioning of purchase department Purchase indent by consuming party ↓ Purchase enquiry ↓ Floating ↓ Finalizing the offers ↓ Placing the purchase order ↓ Procurement of materials ↓ Inspection of materials ↓ SDR, SIV & SRV are prepared Various department first identify the needs of material, then approach to the purchase department and sent a purchase indent, in which they state quantity, amount and Quality of the product required, then purchase department makes an enquire about purchase indent, then it places a purchase order to the supplier. Purchase order is prepared on the basis of quotation in which they stator quality, rate3 amount terms of purchase frequency of supply and delivery schedule etc, and then they think best, then there makes an inspection of all the materials as per the condition and terms of purchase order. FUNCTION OF MATERIALS MANAGEMENT • It is procures materials and stores such as inter stock. • It also stores the stock, which is ordered by the concerned department and supplies it. Department of Management Studies, PESIT Bengaluru 47
  48. 48. Visvesvaraya Iron and Steel Plant, Bhadravathi. • Inventory holding (earlier they followed EOQ maximum-minimum level orders, but now they ordering only by the requirements of the concerned departments) • Stock verification once in two years. FINACIAL DEPARTMENT FLOW CHART OF FINANCIAL DEPARTMENT ACCOUNT SYSTEM • CENTRAL ACCOUNTS • PURCHASE FINACE SECTION • SALES ACCOUNTS SECTION • PAY AND ESTABLISHMENT • COST ACCOUNT SECTION • OTHER AREAS OF FINANCE Department of Management Studies, PESIT Bengaluru 48
  49. 49. Visvesvaraya Iron and Steel Plant, Bhadravathi. Finance means acquisition of funds and proper utilization and allocation of funds in proper way. Finance plays a vital role in the development of any business. Thus development of any business majorly depends on the effective finance management. In VISP Finance Management Department can be divided into different sections. General Manager is the head of the finance department and computer section. He looks after over all activities of finance department. Each section maintains the books of the accounts. The following sections deal with their related transactions. 1. Central accounts section. 2. Purchase accounts section. 3. Sales accounts section. 4. Capital project account section. 5. Pay and Establishment Section 6. Cost and budget account section. Finance Management is one of the most important functions in the organization. It is the lifeblood of the company. Financial management involves the preparation of budget, which will be useful for the future decisions, and it will give information about the company’s financial position to the customer, creditors and Government. Department of Management Studies, PESIT Bengaluru 49
  50. 50. Visvesvaraya Iron and Steel Plant, Bhadravathi. Finance Department DGM-Finance Pay andEstablish CostAcs CentarlAc Purchase Sales Acs and ss Branches Mgr-Fin Mgr-Fin Mgr-Fin Dy.Mgr-Fin Jr.Mgr MgrFin Dy.Mgr-Fin Dy.Mgr-Cash Jr.Mgr Dy.Mgr-Fin Jr.Mgr Dy.Mgr/Jr.Mgr Jr.Executive Department of Management Studies, PESIT Bengaluru 50
  51. 51. Visvesvaraya Iron and Steel Plant, Bhadravathi. ANALYSIS OF BALANCE SHEET FOR THE FINANCIAL YEAR END 31ST MARCH 2008 The long term agreement for wage revision expired on 31.12.2006 pending finalization of fresh agreement w.e.f. 1st Jan 2007 provision for Rs. 3.14 Cr. towards salaries and wages revision, has been made on estimated basis. 1. In view of encashment option allowed under leave travel concision facility during the year, an amount of Rs. 0.90 Cr. in respect of employees who have not availed the facility up to 31.03.2007 has been provided. 2. Power of fuel does not include expenses for generation of power and consumption of certain fuel elements produced by the plants which have been included under the primary heads of account. 3. The R&D cost charged to P&L and Fixed Cost during the year amounts to Rs. 0.0Cr. as at 31.03.06 to Rs. 0.05 Cr. 4. The Company reviews the carrying amounts to its Fixed Assets on each balance sheet date for the purpose of ascertaining impairment if any, by considering assets of entire one plant as cash generating unit(CGU) on such review as at 31.03.2007 wherever there was indication of impairment. The net realizable value being more than the carrying amount as assessment made by amid agency as on 31.03.2005 Department of Management Studies, PESIT Bengaluru 51
  52. 52. Visvesvaraya Iron and Steel Plant, Bhadravathi. PERSONNEL DEPARTMENT FUNCTIONS OF PERSONNEL DEPARTMENT.  RECRUITMENT  SELECTION  INDUCTION  PROMOTION  TRANSFER  PERFORMANCE APPRAISAL  GRIEVEANCE HANDLING  WELFARE MEASURE  PERSONNEL RECORD Management of men factor is a very important and challenging job. Personnel management concerned with optimum utilization of human resources. It is concerned with procurement, development compensation, integration and maintenance i.e. of personnel in an organization. The actives of personnel in a department are centralized in nature. Department of Management Studies, PESIT Bengaluru 52
  53. 53. Visvesvaraya Iron and Steel Plant, Bhadravathi. Functions of personnel Department: 1. Recruitment Recruitment forms the first state in the process, which continues with selection and ceases with the placement of the candidate. the first being the manpower planning, recruiting makes it possible to acquire the number and types of people necessary to ensure the continued operation of the organization. Recruiting is the discovering of potential vacancies in other words, it is a linking activity bringing together those with jobs and those seeking jobs. Recruitment has been regarded as the most important function of personnel administration, 2. Selection:- The selection procedure is concerned with se curing relevant information about an applicant. This information si secured in a number of stages. The objective of selection process is to determine weather an applicant meets the qualification for a specific job and to chose the applicant who is most likely to perform well in that job. SAIL carries out all recruitment and selection. 3. Induction:- Induction is technique by which a new employee is rehabilitated into the changed surroundings and introduced to practice, policies and purpose of the organization other words, it is a welcoming process the idea is to welcome a new comer, make him feel at home and generate to him a feeling that his own job, whenever small, meaningful and has a significance role as a part of the total organization. 4. Promotion:- Department of Management Studies, PESIT Bengaluru 53
  54. 54. Visvesvaraya Iron and Steel Plant, Bhadravathi. Promotion is terms which covers a change and calls for greater responsibilities and usually involves higher pay better terms and conditions of service and therefore, a higher status of rank. Purpose of promotion:- A Promotion is vertical move in the position and responsibility involved in promotion is same measures of skill and responsibility. Promotion are usually given:- • To put the worker in a position where he will be of greater value to the company. • To remove a worker from his job as an alternative to avoid the embarrassment of firing or demoting him. • To increase an employee’s organizational effectiveness. • To attract suitable and competent workers for the organization. Promotion in VISL is based on seniority cum merit and vacancy criteria. In VISL cluster system is allowed to make all the employee of a particular cluster know the other worker’s work also. 5. Transfer:- A transfer horizontal or lateral movement of an employee from one job section, department, shift, plant or position to another at the same or another place where his salary status and responsibility are the same. It generally does not involve a promotion and demotion or change in job status other than movement from one job or place another. Purpose of Transfers. • To satisfy such needs of an organization • To meet an employee’s own request. • To utilize properly the services of an employee. • To increase the versatility of the employee. Department of Management Studies, PESIT Bengaluru 54
  55. 55. Visvesvaraya Iron and Steel Plant, Bhadravathi. • To adjust the work force of one plant with that of another. • To replace a new employee by an employee. • To help employees work according to their convenience. • To personalize the employee. In VISL, inter department and intra department transfer is made. Transfer may be on the request of employee, in the interest of work or it may be job rotation or plant transfer or job enrichment or job enlargement etc., 6. Performance Appraisal Once the employee has been selected, trained and motivated, he is then appraised for his performance, performance appraisal is step where the management finds out how effective it has been at hiring and placing employees, if any problems are identified, steps are taken to communicate with the employee and to solve them. A performance appraisal is a process of evaluating an employee’s performance of a job in terms of its requirements. Self-appraisal system in VISL Self-appraisal means appraisal by the work himself. He will be given format copy to filled by himself regarding his attitude assignment and how much target he fulfilled. It is to be done once every 6 months. The format has been given to reporting officer in open statement. After 6 months copy of another format has to be filled by the appraiser. At the last, boss gives the rating and sent to personnel department and department then think of giving any extra benefit, to the appraisal. A committee has the responsibility of giving final rating to the particular appraisal. 7. Grievance Handling Giving the broadest scope to the term Prof.Jucisus defines grievance as “any discontent or dissatisfaction whether expressed or not and whether valid or not, arising out of any thing, connects with the company that an employ thinks, believes, or even feels is unfair, unjust or inequitable”. According to Prof. Pigors and Myes, grievence means “anything that disturbs an employee whether or not he expresses his unrest in words”. Some of the typical example of workers grievence: 1. Wages – demand for individual wage adjustment. Department of Management Studies, PESIT Bengaluru 55
  56. 56. Visvesvaraya Iron and Steel Plant, Bhadravathi. 2. Supervision- Complaints against discipline. 3. Siniority/Discharge 4. Working Condition. Mckensy’s 7S FRAME WORK Department of Management Studies, PESIT Bengaluru 56
  57. 57. Visvesvaraya Iron and Steel Plant, Bhadravathi. Application of 7s Model Structur e Strategy Systems Shared Values Skills Style Staff Department of Management Studies, PESIT Bengaluru 57
  58. 58. Visvesvaraya Iron and Steel Plant, Bhadravathi. SKILL The Company as a whole is very much skilled with the availability of huge manpower and resources. The company is capable of accepting and producing any type of the product and executes it well before schedule and to the expectation of the customers. The company is able to manufacture over 700 grades of alloy and special steels to meet the specific requirement of individual customers. The steps taken to improve necessary skills of the employees: 1. On the job training. ♦ 7 days training for transferred employees. ♦ 1-year probationary period for newly recruited employees. ♦ Induction training to promoted employee from non-executive level to executive level. Department of Management Studies, PESIT Bengaluru 58
  59. 59. Visvesvaraya Iron and Steel Plant, Bhadravathi. ♦ 6 months probationary period for all executives who are promoted. Training inside the factory will be having facility of O.O.D for the day of training. Training outside the factory will be having facility of O.O.D, TA, and DA. 2. Off the job training ♦ Lecture ♦ Group discussions, case studies ♦ Management games ♦ Developing presentation skill ♦ Conference ♦ External training ♦ Specific need base training etc., STYLE The management of VISL is completely employee oriented. They receive the feedback from the workers and decide on the change in the strategies. As VISL is a unit of SAIL, VISL follows three types of Styles. Those are as follows: 1. Top Down Approach 2. Bottom Up Approach In top down approach the corporate office plans activities and send it to the every units. Because to know whether it is suitable or not and with consultation decision are taken. Department of Management Studies, PESIT Bengaluru 59
  60. 60. Visvesvaraya Iron and Steel Plant, Bhadravathi. In bottom up approach all the units of SAIL plans the activities or recommended certain policies for their convenient and send to the corporate office for approval, thus decisions are made. In this approach the corporate officer only takes certain decisions without consulting the units. In Recruitment process the decisions regarding the recruitment of executives are made by the corporate office without consulting its units. But in case of recruitment of non executives, the decisions are made by the units itself according to their requirement and then sent for the approval of corporate office. STRATEGY: 1. Specializing in developing and marketing special alloy steels and achieve possible market share in this niche area has been notable strategy adopted by the company. 2. Market penetration by the best possible past optimization techniques and achieving price excellence has been another strategy adopted by the company. 3. Smart sizing of the company through introduction of Voluntary Retirement Scheme and leveraging most advanced production techniques has been another major strategy adopted by the company. 4. Systemic intervention into all the processes through development and implementation of various systems has been another strategy adopted by the company to streamline its operations. 5. Very good selection and development systems adopted coupled with several employee welfare measures has been a notable strategy adopted by the company for attracting and retaining the talent. Department of Management Studies, PESIT Bengaluru 60
  61. 61. Visvesvaraya Iron and Steel Plant, Bhadravathi. 6. Discharging corporate social responsibility through several society linkage programs in the area of health, education, and training has been yet another significant strategy adopted by the company. 7. Discharging environmental safeguarding responsibility through various eco- friendly measures has been another noted strategy adopted by the company to discharge its social responsibilities to protect the environment. 8. Introduction of several quality systems including ISO certification has been yet another strategy adopted by the company for maintaining highest quality standards. SYSTEM Inventory Control System Usually a firm has to maintain several types of inventories. It is not possible to keep the same degree of control on all the items. The firm should pay maximum attention to these items whose value is the highest. The firm should, therefore classify investors to identify which items should receive the most effort on controlling. The firm should be selective in its approach to control investment in various types of inventories. These analytical approaches are called ABC analysis and tend to measure the significance of each item of inventories in terms of its value. Department of Management Studies, PESIT Bengaluru 61
  62. 62. Visvesvaraya Iron and Steel Plant, Bhadravathi. The high value items are classified as ‘A items’ and would be under the tightest control ‘C items’ represent relatively least value and would be under simple control. ‘B items’ fall in between these two categories and require reasonable attention of control. The ABC analysis concentrates on important items and is also known as “control by importance and extension”. So the items are classified as per the importance of their relative value this approach is also known as “proportional value analysis” ABC Analysis: In most inventories a small proportion of items accounts for a very substantial usage (in terms of the money value of consumption) and large proportion of items accounts for a very small usage (in terms of the monetary value of annual consumption). ABC analysis is based on this empirical reality advocates in essence a selective approach to inventory control, which calls for a grater concentration of effort on inventory items accounting for the bulk of usage value. This approach calls for classifying inventories in to three categories A, B and C. Category A: Representing the most important items. Generally consists of 15 and 25 percent of inventory items and accounts for 60 to 75 percent of annual usage value. Category B: Representing items of moderate importance. Generally consists of 20 to 30 percent of inventory items and accounts for 20 to 30 percent of annual value. Category C: Representing items of least importance generally consists of 40 to 60 percent of inventory items and accounts for 10 to 15 percent of annual value. Department of Management Studies, PESIT Bengaluru 62
  63. 63. Visvesvaraya Iron and Steel Plant, Bhadravathi. STAFF The people in Organization are very dedicated and work towards the improvement of the Organization. The skill levels of the workers are work oriented and they are specialized in their respective field of work. Most of the workers are well experience and well trained. The staffs are graded from L1 to L11 for non-executives and E1 to E9 for Executives. The qualification for the non-executive employees are SSLC, ITI and for non-executives Diploma and any degree or higher. There is totally around 2600 staff members are there. Their average age is 51-52. The duties and responsibilities of staff differs from department to department like production department to other departments. SHARED VALUE With a Vision of being a world class, innovative, competitive and profitable Alloy and Special Steel Plant it has used all the available resources. The company has a common goal to all its concerns and shares the information available in every concern. The VISL has implemented the following main objectives,  It has been able to build the lasting relationships with customers based on trust and mutual benefit.  It has been able to uphold highest ethical standards in conduct of the business. Department of Management Studies, PESIT Bengaluru 63
  64. 64. Visvesvaraya Iron and Steel Plant, Bhadravathi.  It has been able to create and nurture a culture that supports flexibility, learning and is proactive to change  It also charted a challenging career for employees with opportunities for advancement and rewards.  It values the opportunity and responsibility to make a meaningful difference in people’s levels. Department of Management Studies, PESIT Bengaluru 64
  65. 65. Visvesvaraya Iron and Steel Plant, Bhadravathi. SWOT ANALYSIS SWOT analysis Strengths: 1. Own coal and dolomite mine provides the required raw materials. 2. Ideal location, providing easy access for outgoing materials. 3. Good work culture. Department of Management Studies, PESIT Bengaluru 65
  66. 66. Visvesvaraya Iron and Steel Plant, Bhadravathi. 4. Time tested skill and dedicated manpower. 5. Customer satisfaction. 6. Monopoly in providing different finished products. Weaknesses: 1. Purchasing iron ore for high price. 2. Outdated technology. 3. Inefficiency of management in some areas. 4. Lack of proper infra structure. 5. Poor distribution channels. 6. Lack of technological knowledge up to the desired level. 7. Poor management information system. 8. Poor marketing orientation. 9. Poor delivery schedule. 10. Poor after sales services. Opportunities: 1. Supply of products in specific length and specification. 2. Concentration on production specific to IISCO. 3. Regularizing rolling of some specific section. 4. Products are acceptable to most of the leading clients. 5. Having regular big government sector as customers such as Indian Railway, Defense services NTPC, NHPC etc. Department of Management Studies, PESIT Bengaluru 66
  67. 67. Visvesvaraya Iron and Steel Plant, Bhadravathi. 6. Monopoly in those markets that will be a great help to exports. Threats: 1. Competition with SAIL, TISCO, MITTAL, JINDAL and other big players. 2. No modernization of plant because of which other steel plants take away most of the orders. 3. As it is a government company everyone is very reluctant in their job. LEARNING EXPERIENCE In our 3 weeks of Inplant training at VISL, We studied and learnt many things carried in the organization. This Inplant training helped us in gaining more knowledge about the work and production carried out in the organization. Department of Management Studies, PESIT Bengaluru 67
  68. 68. Visvesvaraya Iron and Steel Plant, Bhadravathi. There are very strict rules followed in HR department, and attendance was taken daily to check the regularity and we used to stay from after noon 9 to evening 5 daily and to visit different departments daily according to their schedule. There was good reaction and co-operation by the superiors and subordinates of VISL. They helped us in collecting the information regarding the different departments and production process. I got the clear picture about the organizational work carried on and how the work is allotted and how it is carried out and the duties and responsibilities of the employees in the organization. I observed the work techniques that are studied in subject being implemented and practiced in the organization like recruitment process, welfare facility, training techniques etc. Finally this Inplant training gave me the clear idea about the working condition in the organization which will help me in future days. BIBLIOGRAPHY Department of Management Studies, PESIT Bengaluru 68
  69. 69. Visvesvaraya Iron and Steel Plant, Bhadravathi.  VISL News – A monthly news Magazine.  Training and development manuals of VISL.  VISL Annual Performance Plan.  Product manual of VISL  Personnel manual of VISL  Insight – A VISL magazine.  SAIL News – A quarter yearly magazine.  www.sail.co.in Department of Management Studies, PESIT Bengaluru 69

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