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PROJECT REPORT
ON
WORKINGCAPITAL MANAGEMENT IN AUTOKAST Ltd
Submitted in partial fulfilment of the requirements for the award of the
degree of Master of Business Administration of University of Kerala
Submitted by: SREENI ANILKUMAR
(Reg. no.13460040)
Under the Guidance of
PROF: ANOOP NAIR
DC School of Management and Technology
KINFRA Film & Video Park
Sainik School (P.O)
Kazhakoottam
Thiruvananthapuram 695585
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
Dc School Of Management & Technology Page 2
DECLARATION
I hereby declare that the project report entitled “A study on working capital management” with
reference to “Autokast Ltd”, cherthala written and submitted by me under the guidance of Mr Anoop
Nair, professor in MBA department, DC SCHOOL OF MANAGEMENT AND TECHNOLOGY,
TRIVANDRUM.
The findings in the project report are based on the data collected by me from “Autokast Ltd”.Also I
declare that this project has not been submitted for the award of any degree from any university.
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
Dc School Of Management & Technology Page 3
ACKNOWLEDGEMENT
Firstly I, express my gratitude to Almighty god with whose grace this education has been possible to
me.
First And foremost, I would like to express my sincere thanks to Mr.P.V.Jitesh, Asst Manager HRD&
Administration, and all other staffs of finance as well as other departments for the bestowing on me
this rare opportunity to undergo my study in such an esteemed organisation. I remember with
profound gratitude and invaluable help rendered by him to me for the successful completion of this
project.
I am deeply obliged to Mr .V.Gopakumar, Director, DC SCHOOL OF MANAGEMENT AND
TECHNOLOGY,TRIVANDRUM.I place my heartfelt gratitude of special thanks to my project guide
Mr.Anoop Nair ,who helped me at all time with valuable suggestion to enable me to carry out the
project with great confidence and enthusiasm.
I am greatful to all my friends and relatives who extended their co-operation and encouragement for
doing this project.
Above all I wish to utilize this opportunity to acknowledge faith in almighty. Without his blessings,
this project would have reached nowhere.
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
Dc School Of Management & Technology Page 4
CONTENTS
SI .NO TITLE PAGE .NO
CHAPTER - 1 INTRODUCTION 8
CHAPTER -2 INDUSTRY PROFILE 10-15
CHAPTER -3 COMPANY PROFILE 17-87
CHAPTER -4 LITERATURE REVIEW 89-103
CHAPTER -5 FINANCIAL ANALYSIS OF DATA 105-134
FINDINGS,SUGGESTIONS,CONCLUSION
BIBLIOGRAPHY
APPENDIX
136-139
140
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Dc School Of Management & Technology Page 5
LIST OF TABLES
Table no Table Name Page no
1. AUTOKAST LTD at a glance 19
2. List of major products at Autokast Ltd 21
3. Chemical composition 38
4. Chemical composition 38
5. Manpower in Autokast 43
6. Punching system 44
7. Evaluation process -rating 47
8. Major customers 58
9. Schedule of changes in working capital (2009-10) 106
10. Schedule of changes in working capital (2010-11) 107
11. Schedule of changes in working capital (2011-12) 108
12. Schedule of changes in working capital (2012-13) 109
13. Schedule of changes in working capital (2013-14) 110
14. Current ratio 111
15. Quick ratio 112
16. Absolute liquidity ratio 113
17. Inventory turnover ratio 115
18. Total asset turnover ratio 116
19. Fixed asset turnover ratio 117
20. Current asset turnover ratio 118
21. Current asset to fixed asset ratio 119
22. Current asset to total asset ratio 120
23. Debtors turnover ratio 121
24. Working capital turnover ratio 122
25. Net profit ratio 123
26. Administrative expense ratio 124
27. Operating profit ratio 125
28. Proprietary ratio 127
29. Current asset trend 129
30. Current liability trend 130
31. Fixed asset trend 131
32. Working capital trend 132
33. Sales trend 133
34. Gross profit trend 134
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
Dc School Of Management & Technology Page 6
LIST OF FIGURES
Figure no CHART NAME Page no
1. Metal casting share in percentage 11
2. Top ten casting producing countries 12
3. Share of no of small and medium foundry industry in total -
India
14
4. Market share of major products 57
5. Current ratio 112
6. Quick ratio 113
7. Absolute liquidity ratio 114
8. Inventory turnover ratio 115
9. Total asset turnover ratio 116
10. Fixed asset turnover ratio 117
11. Current asset turnover ratio 118
12. Current asset to fixed asset ratio 119
13. Current asset to total asset ratio 120
14. Debtors turnover ratio 121
15. Working capital turnover ratio 122
16. Net profit ratio 123
17. Administrative expense ratio 124
18. Operating ratio 126
19. Proprietary ratio 127
20. Current asset trend percentage 129
21. Current liability trend percentage 130
22. Fixed asset trend percentage 131
23. Working capital trend percentage 132
24 sales 133
25. Gross profit trend percentage 134
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
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INTRODUCTION
The primary purpose of this study is to fulfilment of the requirements for the degree of MBA.
For this I conducted my Study in Autokast Limited, Cherthala for a period of one month. The
era of liberalization has opened up new vistas for Indian Economy. In the fast changing
economic scenario it is imperative for every aspiring entrepreneur to have a vivid
understanding of the functional application of the new age business. The study was about the
analysis of working capital management in autokast ltd. Well-managed working capital is
crucial to the running of a healthy and successful business. In simple terms, working capital
is the cash available for the day-to-day running of the business, used to settle regular bills
such as wages and supplies, and also covering unplanned costs and unexpected expenses. An
important part of working capital management is a company's cost structure.
Working capital represents the liquidity available to a business, and can be calculated in
various ways. Gross working capital is the entire sum of a company‟s current assets; net
working capital (NWC) stands for the company‟s current assets minus its current liabilities,
and represents the actual amount available at any given moment.
Working Capital is the life blood of every business concern. Business firm cannot make
progress without adequate working capital. Inadequate working capital means shortage of
inputs, whereas excess of it leads to extra cost. So the quantum of working capital in every
business firm should be neither more nor less than what is actually required. The
management has to see that funds invested as working capital in their organization earn return
at least as much as they would have earned return if it invested anywhere else. At the time of
increasing capital costs and scare funds, the area of working capital management assumes
added importance as it deeply influences a firm's liquidity and profitability. A notable feature
of utilization of funds is that they are of recurring nature. Therefore, efficient working capital
management requires a proper balance between generation and utilization of these funds
without which either shortage of funds will cause obstruction in the smoother functioning of
the organization or excess funds will prevent the firm from conducting its business
efficiently. So the main objective of working capital management is to arrange the needed
funds on the right time from the right source and for the right period, so that a trade-off
between liquidity and profitability may be achieved.
A firm may exist without making profits but cannot survive without liquidity. The function of
working capital management organization is similar that of heart in a human body. Also it is
an important function of financial management. The financial manager must determine the
satisfactory level of working capital funds and also the optimum mix of current assets and
current liabilities. He must ensure that the appropriate sources of funds are used to finance
working capital and should also see that short term obligation of the business are met well in
time.
Through the study of working capital management I can able to understand the total current
assets, current liabilities, companies day to day operations etc.
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
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INDUSTRY PROFILE
OVERVIEW
The Indian Foundry Industry produces approximately 7 Million MT of Castings employing
estimated 500,000 persons directly & another 1.5 million indirectly. The growth of Foundry
Industry is very important for inclusive growth, other Engineering sectors & the overall
Indian Economy
Foundry Industry is the basic Engineering Industry, the product of which is used by
almost all people. Virtually each and every industrial process needs Castings of one type or
the other. All forms of transport do require to a major extent the Foundry Industry
production.
Founding or Casting is the process of producing metal /alloy into a prepared mould and then
allowing the metal/alloy to cool and solidify. The solidified piece of metal/alloy is known as
a Casting. Founding or Casting is one of the oldest manufacturing processes, which dates
back to approximately 4000BC. The first Foundry centre came into existence in the days of
Shan Dynasty in China. A number of foundries using Cast Iron as the structural material
came into being after the industrial revolution.
The Indian Foundry is striving to rewrite its history and emerge as automated green
Industry. India is currently one among the 10 largest producers of ferrous and non-ferrous
Castings and has over 6500 foundries in the small, medium and large –scale Industries.
The Indian Foundry Industry occupies a special place in shaping the country‟s
economy. India is currently among the 10 largest producers of ferrous and non-
ferrous Castings and has over 6500 foundries in the small, medium, and large scale
sectors. Approximately 90% are in the small scale. India exports annually above
Rs.700/- crores worth of Castings to countries like USA, U.K., Canada, Germany
etc.
There are more than 5,000 Foundry units in India, having an installed capacity of
approximately 7.5 million tons per annum. The majority (nearly 95%) of the Foundry units
in India falls under the category of small-scale Industry.
The Foundry Industry is an important employment provider and provides direct employment
to about half a million people. A peculiarity of the Foundry Industry in India is its
geographical clustering.
Typically, each Foundry cluster is known for catering to some specific end-use markets. For
example, the Coimbatore cluster is famous for pump-sets Castings, the Kolhapur and the
Belgaum clusters for automotive Castings and the Rajkot cluster for diesel engine Castings.
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SIGNIFICANCE OF FOUNDRY INDUSTRY
Foundry Industry is Major Feeder to following sectors:-
 Automobiles & Auto Components
 Railways
 Power Sector
 Tractor Industry
 Earth Moving Machinery
 Pumps, Compressors, Pipes Valves & Pipe Fittings
 Electrical/Textile/Cement/Agro Machinery
 Machine Tools & Engineering Industries
 Sanitary Castings
 Engineering Exports
Approximately 32% Output of Foundry Industry goes to Auto Industries & Balance to other
downstream Engineering Sector. Automotive Mission Plan (AMP) 2006-2016 envisages 4 Fold
Growth by 2016. I.e. from$34 Billion Industry to $ 122-160 billion Industry and employing about 25
million by 2016. AMP 2006-16 will drive demand of Castings from Foundry Industry. Corresponding
Growth in Foundry Sector vital to sustain growth in Auto & other Engineering Sectors.
Graph below Depicts Types of Metal Castings Share in %
Figure 1
Series1, Grey
Iron, 70, 70%
Series1,
Ductile Iron,
9, 9%
Series1, Steel,
12, 12%
Series1, Non
Ferrous, 8,
8%
Series1,
Others, 1, 1%
Types of Metal Castings Share in %
Grey Iron
Ductile Iron
Steel
Non Ferrous
Others
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Graph below Depicts Top Ten Casting Producing Countries
Figure 2
THE INDIAN CASTING INDUSTRY
India ranks 6th country in the world for producing an estimated 6 Million MT of various
grades of Castings. The various types of Castings which are produced are ferrous, nonferrous,
Aluminium alloy, graded Cast Iron, ductile Iron, Steel etc. for application in automobiles, railways,
pumps compressors and valves, diesel engines, cement/electrical/ textile machinery, amongst
others. The Grey Iron Castings have a major share of 70 per cent of the total Castings produced.
There are approximately 4,500 units engaged in Castings, out of which 80 per cent can be classified
as small-scale units and 10 per cent each as medium and large-scale units.
The Industry is a labour intensive one, employing about 5, 00, 000 people directly and an
additional 1,50,000 people indirectly. The small units are mainly dependant on manual labour.
However, the medium and large units are semi or fully mechanized and some of the large units are
world class.
The Industry is organized in clusters in various regions like Agra, Belgaum, Chennai, Howrah,
Coimbatore, Chennai, Kolhapur, Ludhiana, Pune and Rajkot. Each cluster has its own niche products
for its user Industries.
Series1, Korea, 2.1
Series1, France, 2.4
Series1, Italy, 2.6
Series1, Brazil, 3.4
Series1, Japan, 5.7
Series1, Germany, 5.8
Series1, India, 7
Series1, Russia, 7.8
Series1, USA, 10.8
Series1, China, 33.5
Million MT
Top Ten Casting Produsing Countries (Figures in Million MT)
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THE PRODUCT MIX
The Industry is trying to focus on higher value added products to face competition globally.
It may be noted that 62 per cent of the Casting production is catered by China, European Union and
US. The shortage of scrap and pig Iron in EU continues to affect its cost of Castings, forcing them to
look to China and India for cost effective Castings. The production of Castings grew from 2.76 million
MT in 97-98 to 7.77 million MT in 2007- 08. This is a 300 per cent jump in production capacity in a
decade. It was the growth in the automobile Industry that provided the major thrust in the Castings
Industry.
COMPETITIVE ADVANTAGE
India has a major competitive advantage over the Castings Industry in the developed
Countries. Here the total labour cost is low compared to that of the US and EU. Here Labor cost
accounts for 12-15 per cent of the product cost. The Indian government has encouraged technology
transfer through a joint venture (JV) with foreign companies.
The Foundry Industry has an edge over China as well – it is able to produce complex Machine and
precision Castings as per international quality standards. The clusters in Belgaum, Coimbatore and
Howrah are undergoing modernization under the Industrial Infrastructure up gradation scheme
INVESTMENT
India would need approx. $ 3 Billion in investment to meet the demand of growing domestic
Industry and strong export drive. Following the economic reforms the Government of India has
reduced tariffs on imported capital goods. As a result, the annual average amount of FDI is reported
to have increased; but is still one tenth of the annual FDI in China. The reforms encourage the
privatization of Industry, enabling foreign companies to invest or enter into joint ventures with
Indian Foundries. Several International Corporate from USA, EU and East Asian countries have
increased overseas Foundry operations in India. I.e. VOLVO foundries in Chennai and Suzuki in
Haryana. Sundaram Clayton has joined hands with Cummins. Hyundai Motors, Delphi. Ford India,
Tata‐Cummins, GM and Ford have contracts of Foundry products for export with a value of $ 40
Million.
RAWMATERIAL & ENERGY
Since 2003, the steep increases in cost of Raw Materials and energy have resulted in the closure of
approx. 500 units. Overall, India is exporter of Pig Iron; but must import Scrap metals and coke, etc.
Cost recovery for material and energy is very difficult as most contracts are long term contracts
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
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without any clause for price adjustment. Moulding sand is locally available & India has an advantage
on this account. Energy cost typically varies between 12‐15%.
LABOUR
India has major competitive advantage over the Foundry Industries in the developed
countries. The total labour cost account for 12‐15 %. But availability of skilled labour becomes an
issue; bothering many Industries including the Foundry Industry.
TECHNOLOGY
The Government of India (GOI) has encouraged technology transfer through a Joint Venture
(JV) with foreign companies and the GOI has cooperated with UNIDO with many Foundry clusters.
The Indian Foundry Industry has an edge over China for producing complex machined and precision
Castings as per international quality standards. The GOI also helps upgrade Foundry clusters. The
clusters in Belgaum, Coimbatore and Howrah are undergoing modernization under the industrial
infrastructure up gradation scheme. More of such clusters are likely to follow.
Figure 3
SWOT ANALYSIS OF CASTING INDUSTRY
Strengths
 Cost competitiveness in terms of labour costs.
 Well established manufacturing base
 Matured Industry level
 Proven product development and tooling capabilities.
 Strong Engineering skills and robust IT domain knowledge.
 Top Companies have world’s class manufacturing facilities.
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
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Weakness
 Capacity constraints
 Below top 10, rest are in small and medium sector, who need to scale up.
 Engineering changes lead times is rather large in India.
 High energy cost.
 High cost of alloy Steels because Ni, Cr, Mo & V are imported and not locally available which
makes the cost high.
 Technology up gradation lacking in small sector because of high capital cost involved.
 Inefficient economics of scale.
 Logistics costs are high.
 Environment compliance costs are high.
 Perception about quality inadequate.
 Infrastructure bottlenecks.
Opportunities
 The higher cost of environmental compliance in EU is leading to closure of Casting units
across Europe and they are off-loading the components involving Casting to Asia.
 Switch to value added products and niche products
 Growth of Auto sector in India is giving big boost to Casting Industry to upgrade both
capacities and quality.
 Buying the closed units in EU and shifting plants to India and cater to their local customers
by exports from India.
Threats
 Increasing cost of Environmental compliances.
 Too high wastage in manufacturing, the raw material productivity is low.
 High logistics cost.
 Competition from China, Indonesia and Eastern Europe.
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
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COMPANY PROFILE
Autokast was established in the year 1982 as a subsidiary of Steel Industrials Kerala Ltd. (SILK), a
Govt. of Kerala Undertaking for the manufacture of Grey Iron and Spheroidal graphite Iron Castings.
Autokast limited was started on with the aim of manufacturing all types of ferrous Casting unit under
the Steel Industrials Kerala ltd (SILK). On May 21-1984 incorporated as separate subsidiary on SILK
and renamed as Autokast Limited, which is located at S N Puram near Cherthala is a modern
industrial Casting unit an ISO 9002: 2008 Company. The unit has an optimum capacity of 18000 tons
per annum and covers an area of 21500 square meters. The plant comprises of two distinct production
lines via, the conventional moulding line and the high pressure moulding line. The Company can
manufacture ferrous Castings of all grades and sizes ranging from 5kg to 8000kg.
The conventional moulding line is semi-automatic system in which large Casting is
manufactured, whereas high pressure moulding line is fully automated system in which smaller
Casting are manufactured in large quantities. The plant manufactures intricate high precision item of
mass production like cylinder block and cylinder heads for the entire range of automotive engine.
Produce all grades of Grey Iron Castings up to 8.5Mt single pc (18700 lbs.) and all grades of
Ductile Iron Castings up to 7 MT single pc (15500 lbs.)and Steel Castings weighing up to 3MT
single piece. Commonly produced grades are IS 1030 and WCB range casting. Induction melting
furnace of 5MT and 3MT are exclusively
Autokast has the following range of manufacturing facilities.
1. Air impulse type high pressure moulding line with a box size of 750 x 750 x 400/350 mm
capable of producing 80 moulds per hour. The line is fully computer controlled and is
supported by automatic core shooting machines employing different sand systems like cold
box, shell core etc. Product range varies from 10 kg to 120 kg.
2. Conventional hand moulding line capable of manufacturing Castings ranging from 200kg. to
4000kg. Single piece weight.
3. Machine moulding facility having a mould box size of 790 x 790 x 400/400 mm and 1190 x
790 x 400/400 mm capable of manufacturing Castings ranging from 30kg. to 160kg.
4. Liquid metal is generated from 2 numbers of 6 MT Mains Frequency Induction Furnaces and 2
High Frequency Induction Furnace of 3MT and 5MT capacity.
Pattern shop at AKL acts as a service shop for pattern equipment used in production.
Autokast is fully equipped with state of the art testing facilities like
1. Well-equipped wet analysis laboratory.
2. Twenty six channel, Baird make vacuum spectrometer imported from U.S.A.
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
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3. Mechanical testing lab with 60T UTM, Brinnel hardness Tester, Rock well
Hardness tester etc.
4. Metallographic facilities.
5. Ultrasonic testing facilities.
6. Magnetic particle testing facilities, and
7. Liquid penetrant tests.
The Company‟s products at present cater to the needs of following segments of Indian and overseas
Industries.
1. Automotive,
2. Tractor,
3. Butterfly Valve and Disc assembly,
4. Agricultural,
5. Wind mill energy and
6. General Engineering Industries
SCOPE & FIELD OF APPLICATIONS
This quality Management system covers manufacture, inspection, testing and supply of Steel,
Grey Iron and nodular Iron Castings for automotive, tractor, butterfly valve wind mill energy and
general Engineering Industries.
Autokast manufactures Castings to customers‟ design only. Likewise, all products of
Autokast can be verified by subsequent monitoring and testing. All activities of Autokast are covered
under the quality Management system to continually improve the quality of its products as well as to
ensure complete customer Satisfaction
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
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AUTOKAST LTD AT A GLANCE
Registered Office & Works SN Puram,Cherthala;Alappuzha(dist.)
Year of Establishment 1984
Products Grey Iron and Ductile Iron
Production facilities High Pressure moulding .M/c Moulding
&Hand Moulding
Moulding process Green Sand &CO2 system
Core Making CO2,No bake & Pepset
Furnace 6MT Electric Induction *2 nos
Testing Facilities Spectrometer, Ultrasonic, Magnetic
Particle test, Dye penetrant
Present Production 350MT/month
Spare Capacity 150MT/month
Total Land & Covered area 2,20,000 m2
& 60,700 m2
Table 1
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
Dc School Of Management & Technology Page 20
MISSION
 Production in large volume and cost effectiveness in all segments
 Produce technologically superior products
 Achievement of customer delight through benchmarking global
practice
 Consistent production through harmonious industrial relations
Strengthen supply chain Management
VISION
 To raise the Company as a leader of Casting Industries in India
 The Company should be recognized and respected as a manufacture of the
world class product serving customers by supplying quality Castings at right
time
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
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LIST OF MAJOR PRODUCTS
Sl.No Item Material Cast. Weight Application
1
Gear Box Hsg/Engine
Housing
Grey Iron 40 Kg to 130 Kg Tractor
2 HUB Ductile Iron 1000 Kg to 3300 Kg Wind Mill
3 Extender Ductile Iron 400 Kg to 600 Kg Wind Mill
4 Main Brg Hsg Ductile Iron 150 Kg to 1250 Kg Wind Mill
5 Yaw Top Ductile Iron 700 Kg to 1200 Kg Wind Mill
6 Claw Beam Ductile Iron 70 Kg to 110 Kg Wind Mill
7 Brake Disc Ductile Iron 50 Kg to 120 Kg Wind Mill
8 Gear Stay Ductile Iron 150 Kg Wind Mill
9 Bed & Frame Grey Iron 200 Kg to 3500 Kg
Machine
Tool
10 Valve Body Grey Iron +2% Ni 300 Kg to 5500 Kg
Butterfly
valve
11 Valve Disc / Vane Ductile Iron 250 Kg to 5750 Kg
Butterfly
valve
12 Sphere Grey Iron 300 Kg to 1200 Kg Ball Valve
13 Valve Body Grey Iron 700 Kg to 2200 Kg Gate Valve
14 Body & Head
Grey Iron +2% Ni +0.75%
Cr
100 Kg to 3300 Kg
Vacuum
Pump
15 Discharge Head Grey Iron 100 Kg to 160 Kg
Vertical
Pump
16 Dome Grey Iron + 1%Cr 40 Kg to 100 Kg
Ash
Handling
17 Ash Vessel Ductile Iron 170 Kg to 600 Kg
Ash
Handling
Table 2
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ISO CERTIFICATION
Autokast is an ISO 9002: 2008 certified Company. It has got the certification in 1990. ISO 9000 is a
family of standards for quality Management systems. ISO 9000 is maintained by ISO, the
International Organization for Standardization and is administrated by accreditation and certification
bodies. The ISO 9002: 2008 agency in Autokast is Netherlands agency KEMA. The agency studies on
various department and prepares a manual on each department. There is managing committee on ISO
9002: 2008 certification procedure. If there is any default or defect in the department, the agency
prepares a detailed copy of changes to each department for modification. The Autokast which has
export relationship with the foreign companies, the ISO certification enables a prompt Impact on the
functioning procedure. The agency also does Internal Audit in the Company. The NVT is the Indian
agency which does the certification procedures. It is granted by KEMA.
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QUALITY POLICY OF AUTOKAST
EXCELLENCE IN THE FIELD
BY ACHIEVING
COMPLETE CUSTOMER SATISFACTION
THROUGH
CONTINUAL IMPROVEMENT
AS WELL AS
INVOLVEMENT OF EMPLOYEES
AND,
CONTRIBUTING ITS MITE TOWARDS
NATION BUILDING
THROUGH
INCREASED EXPORT EARNINGS.
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BUSINESS PURPOSE
SERVING CUSTOMERS BY SUPPLYING QUALITY CASTINGS
AT RIGHT TIME
QUALITY OBJECTIVES
The Quality Policy is translated in terms of specific measurable objectives as given below:
A. CUSTOMER SATISFACTION
1. Minimize customer complaints
2. Minimize rejection at customer ends.
3. Cutting down lead time for sample development.
4. Minimize delivery slippages
B. CONTINUAL IMPROVEMENT IN OPERATIONS
1. Bring down shop floor rejections.
2. Minimize reworks.
3. Improvement in overall efficiency of critical equipment‟s.
C. EMPLOYEE INVOLVEMENT
Meetings conducted under various shop councils & Defect Analysis review
Committee.
D. IMPROVEMENT IN EXPORT TURNOVER
Continual growth in export turnover.
The quality policy, quality objectives and targets are reviewed annually for its continued suitability.
Quality policy objectives shall be made known to all Employees by means of Bills at different
locations in the plant and by personal communication by department heads. Every Employee of
Autokast shall be committed to achieve this objective by strictly following the documented quality
system.
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
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PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
Dc School Of Management & Technology Page 27
RESPONSIBILITY AND AUTHORITY OF EXECUTIVES
1) MANAGING DIRECTOR
RESPONSIBILITY
 Overall control of the Company
 Resource planning
 Growth and development of the Company
 Ultimate responsibility for product quality Management system
 Chairing of the Company policy and achieving targets/objectives
AUTHORITY
 Total authority for all type of transaction of the Company subject to approval by the board
of directors
2) PLANT MANAGER
RESPONSIBILITY
 Overall responsibility of Engineering quality control, production and maintenance contain
cost of production in line with the budget; minimize non-conformity in products and
process. Shop planning to achieve target, maintain shop floor discipline.
AUTHORITY
 Approve purchase indents of Raw Materials & spares
 Initiate discipline proceeding against subordinates
 Authorize to send subordinates staff on tour for official purpose.
3) HEAD MARKETING
RESPONSIBILITY
 Overall responsibility of marketing activities.
 Contact review and market development.
 Co-ordinate customer complaints with emphasis on preventive action.
AUTHORITY
 Contract finalization
 Authorized to send subordinates staff on tour for official purpose.
 To initiate disciplinary action against subordinates.
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4) HEAD, ENGINEEING &PATTERN SHOP
RESPONSIBILITY
 Assessment of Technical feasibility, Finalization of Casting, Drawing and Process methods,
Sample Development, Technology advancement, customer service & control of technical
data.
 Ensure that Castings are developed within the targeted time period.
AUTHORITY
 Corrective and preventive action related to methods, manufacture /procurement of
Patterns, Core boxes, Molding Flasks etc.
 To send subordinates staff on official tour
 To initiate disciplinary action against subordinates.
5) HEAD, QUALITY CONTROL
RESPONSIBILITY
 Inspection of incoming materials &process material like moulds, cores &liquid metal.
 Calibration of Testing and Laboratory Instruments
AUTHORITY
 Final authority to accept/reject incoming and process materials
 Authorized to send subordinates staff on tour for official purpose
 Authorized to stop /restart production /process in line with non-conformity ,of process
parameters as stipulated in process sheet
 To issues materials Test Certificate for finished products
 To initial disciplinary action against subordinates.
6) HEAD, INSPECTION
RESPONSIBILITY
 Responsible for final inspection of all the finished product of the Company
 Responsible for inspection of pattern equipment’s
 Dispatch clearance
 Calibration of measuring and other inspiration Instrument and Gauges
AUTHORITY
 Final authority to accept/reject all finished products with respect to Dimensional and visual
aspects
 Authorized to send subordinate staff on tour for official purpose
 To initiate disciplinary action against subordinates
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7) HEAD, PURCHASE
RESPONSIBILITY
 Supplier evaluation and all purchase activities
 Inventory Management of incoming materials, compliance of purchase and inventory
procedures
AUTHORITY
 Realize of purchase order up to value of Rs. Ten lakhs.
 Authorized to send subordinate staff on tour for official purpose
 To initiate disciplinary action against subordinates
8) HEAD, SUB CONTRACT AND PROJECTS
RESPONSIBILITY
 All Subcontracting activities including development of new subcontractors and matters
related to projects, Maintenance of building ,work space and utilities
AUTHORITY
 Release of Work Orders, Suppliers evaluation and approval of bill of subcontractors
 Authorized to send Employees working under him on tour for official purpose
 To initiate disciplinary action against subordinates
9) HEAD, HUMAN RESOURCE DEVELOPMENT & ADMINISTRATION
RESPONSIBILITY
 Wage administration and statutory compliance under Labor Law.
 Identifying Training needs and Organizing training programs
 General administration and Employee welfare.
 Adopt measures to seek Employee involvement in Company‘s development activities
 Up keeping of work environment and pressure vessels & lifting tackles
AUTHORITY
 Approve payments to Employees ,Security ,Canteen, Transport etc. as per norms
 Sales of usufructs
 Authorized to send subordinate staff on tour for official purpose
 To initiate disciplinary action against erring subordinates
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10) HEAD, FINANCE
RESPONSIBILITY
 Overall charge of the department
 Preparation of Budget annually and enforcing financial discipline to work within the Budget
 Costing of activities and suggesting cost control measures
AUTHORITY
 To represent Autokast in financial transaction with financial institution and other agencies as
authorized by Managing Director
 To recommend necessary Training needs to Subordinates staff
 To initiate necessary discipline action against erring subordinate staff
11) HEAD, PRODUCTION PLANNING & CONTROL
RESPONSIBILITY
 Over all charges of the department
 Plan production and dispatch based on Work Order from Marketing Department
 Follow-up of activities to achieve the target
 Appraise the top Management about the progress of activities on a daily basis
AUTHORITY
 To recommend necessary training need to subordinates staff
 To initiate necessary disciplinary action against erring subordinate staff.
12) HEAD, MELTING
RESPONSIBILITY
 Overall charge of Melting Production ,Manpower control ,and co-ordinates with other
departments
 Cost control and productivity improvement
 Monitoring and implementing adequate safety measures for mean and machinery
AUTHORITY
 To recommend necessary Training needs to Subordinate staff
 To initiate necessary disciplinary action against erring subordinate staff
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13) HEAD, CONVENTIONAL MOULDING (HAND MOULDING)
RESPONSIBLITY
 Over all charge of production ,manpower ,and co-ordination with other departments
 Cost control and productivity improvement
 Monitoring and implementing adequate safety measures for men and machinery
AUTHORITY
 To recommend necessary training needs to subordinates staff
 To initiate necessary disciplinary action against erring subordinates.
14) HEAD, HP LINE (AIR IMPULSE)
RESPONSIBILITY
 Over all charge of Production, Manpower and co-ordination with other departments
 Cost control and Productivity improvement
 Monitoring and implementing adequate safety measures for mean and machinery
AUTHORITY
 To recommend necessary training needs to subordinates staff
 To initiate necessary disciplinary action against erring subordinate staff
15) HEAD, FETTLING
RESPONSIBILITY
 Over all charge of Production ,finished goods store, manpower ,and co-ordination with other
department
 Cost control and productivity improvement
 Monitoring and implementing adequate measures for mean and machinery
AUTHORITY
 To recommend necessary training needs to subordinates staff
 To initiate necessary disciplinary action against erring subordinates staff
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16) HEAD, MAINTENANCE (MECHANICAL & ELECTRICAL)
RESPONSIBILITY
 Overall charge of technical and administrative function of electrical and mechanical
departments
 Making plant and machinery available for maximum productivity by bringing down
breakdown and scheduling preventive maintenance suitably
 Liaison with outside agencies like KSEB Electrical Inspectorate and Factory Inspectorate
 Introducing cost reduction where ever possible and implementing value Engineering
AUTHORITY
 To recommend necessary training needs to subordinates staff
 To initiate necessary disciplinary action against erring subordinates staff
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PRODUCT REALIZATION PROCESS
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Steps
1. At first the customer places an enquiry with the Marketing Department.
2. The drawings and specifications by the customer are transferred to the Engineering department by
the Marketing Department asking for the feasibility report.
3. Engineering department prepares the feasibility report based on the factors such as weight order
quantity, complications, materials used and other technical details.
4. The report is send back to the Marketing Department.
5. The Marketing Department fixes the rate (by putting up the proposal to the pricing committee
which includes the representatives from the marketing, finance, Engineering, Production Departments
and the managing director) and inform to the party (customer).
6. Negotiation with the party is made if required.
7. Customer places the order.
8. The Marketing Department issues the work order to other departments.
9. If the model (pattern) is not provided by the customer, then it should be produced first. The design
is made by the Engineering department as per the drawings and specifications provided by the
customer and the pattern shop produces the pattern.
10. The required Raw Materials for the product are procured (mostly from suppliers).
11. The production planning and control department issues the production schedule.
12. Manufacturing process is established which includes mould making, melting and coring.
13. Quality inspection is held at each stage of production by the quality control department.
14. Maintenance and calibration of machines are done at proper intervals.
15. After the manufacturing process, the Casting is brought to the Fettling Department. Finishing of
the product is ensured here and the excess metal on the Castings are removed.
16. The final product is inspected and tested for the quality and is send back to the customer.
17. As per the customer‟s feedback, further improvement measures are taken by the Company.
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PRODUCTION
Autokast is making Casting to Customers Design and production is controlled in two stages, first
stage being developing Sample Casting followed by regular production after getting approval from
the customer.
Sample Casting
All the activities of taking out samples shall be controlled by the Development team under
leadership of Head, Eng. until it is cleared for regular production. In process inspection shall monitor
each activity and record observations.
Based on work order from marketing dept. Prepare the process sheet and draft quality plan along
with method drawing and issue copies of quality plan/process sheet to concerned depts., like
Moulding, Melting, Quality Control/Inspection.
Study the quality plan/process sheet of the item and arrange required facilities/materials at their
respective shop.
Based on production plan from PPC, draw patterns and start moulding process according to the
guidelines provided in the process sheet/quality plan and documented work instruction of Moulding
dept.
After completion of moulding process, close the moulds (Mould Assembling).
Cast the mould with specified molten metal under specified pouring conditions.
Knock out the Casting after specified holding time.
Decor the Castings and transfer them to Fettling shop.
Fettle the Castings.
Inspect the Casting visually and record the status.
Castings cleared after the visual inspection shall be marked for dimensional conformance.
Test mechanical and metallurgical properties of representative test coupons and record the status.
When all the characteristics are conforming to customer requirements, issue despatch clearance for
the Castings.
Despatch the Castings and seek Customer feedback.
Forward the feedback from the customer to Head, Engineering.
Evaluate observations by customer and observations by the development team during the course of
development and update quality plan/process card.
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Issue final quality plan and clearance for regular production.
Regular production.
After getting for regular production from Engg,dept., plan regular production and issue copies
o planning sheet to concerned departments.
Ensure availability of update (latest revision) of process sheet/quality plan at respective departments.
During regular production, total responsibility of clearing the Casting for despatch shall be with
Heads of inspection and QC, visual, dimensional and NDT with the former and metallurgical and
mechanical with the latter.
STEPS INVOLVED IN MAKING A CASTING
1) Make the Pattern out of Wood or Metal.
2) In case of Sand Casting, select, test and prepare the necessary sand mixtures for mould and
Core Making
3) With the help of patterns prepare the Mould and necessary Cores.
A Mould is a container having a cavity of the shape to be cast.
A Core is a body which is employed to produce a cavity in the Casting
4) Melt the Metal to be cast.
5) Pour the molten metal into the mould and remove the Casting from the mould after the
metal solidifies.
6) Clean and finish the Casting.
7) Test and Inspect the Casting.
8) Remove the defects, if any.
9) Relieve the Casting stresses by Heat Treatment
10) Again inspect the Casting
11) The Casting is ready for shipping.
ADVANTAGES OF METAL CASTING
 Casting is one of the most versatile manufacturing processes.
 Casting provides the greatest freedom of design in terms shape, size and the product quantity
 Casting imparts uniform directional properties and better vibration damping capacity to the
cast parts.
 Casting produces machine parts
 Shapes difficult and uneconomic to obtain otherwise may be achieved through Casting
process.
 A product may be cast as one piece, thereby eliminating the need of metal jointing
processes.
 Very heavy and bulky parts like those of power plants and Mill Housings, which are
otherwise difficult to get fabricated may be cast.
 Metals difficult to be shaped by other manufacturing processes may be cast.
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 Castings can be designed for equal distribution of loads and for minimum stress
concentration in order to achieve more strength and increased service life.
 Casting process can be mechanized and usefully employed for mass production of
components.
APPLICATIONS OF METAL CASTING
The growing demand of high precision Castings and of intricate designs at lower costs has
helped considerably in the development of Foundry Industry. Hardly there is any product, which
does not have one or more Casting components.
A few applications of Founding or Casting are mentioned below:
1. Transportation vehicles: Cast metal parts account for more than 90% of an
automobile engine and for more than 50% of the total weight of a tractor.
2. Machine tool structures.
3. Turbine vanes.
4. Power generators.
5. Mill housings.
6. Railway crossings.
7. Super-charger Casting
8. Pump filter and valve.
9. Paper mill stock breaker parts.
10. Aircraft Jet engine blades.
11. Agricultural implements.
12. Sanitary fittings.
13. Communication Construction and Atomic Energy Applications.
14. Wind mills.
PRODUCT PROFILE
Autokast Ltd is a Foundry unit producing Iron Castings for a variety of Industries. The Iron
Castings are made of Cast Iron. Cast Iron is a general term that describes Iron, carbon, silicon alloys
which are produced by pouring the molten metal into sand / metal moulds. Cast Iron is brittle and grey
in colour. The carbon content in Cast Iron is more than that in Steel which makes it less malleable. By
varying the silicon and carbon content at alloy, several types of core Iron can be produced each with
different properties and uses.
The major product lines of Autokast are:
1. Auto motives Castings
Cylinder heads, Cylinder blocks, Drum Housing etc.
2. Machine Castings
Machine tool Casting
3. Pump Castings
Vacuum and Slurry pump Casting
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4. Castings for Pressure Tight Application
Central valves, pressure vessel Castings etc.
5. Windmill Castings
Bearing Housings, Hub, Extender, etc.
Autokast produces Castings in Grey Iron and spheroidal graphic Iron or nodular Cast Iron.
Grey Cast Iron
Grey Iron can be readily cast into desired shapes by pouring into moulds. So it is the most commonly
used type of Cast Iron for the manufacture of Castings. The other distinguishable characteristics of
Grey Iron are:
 Lowest melting point of all ferrous alloys.
 Carbon in Grey Iron is found in the form of graphite flakes.
 Low cost combined with hardness and rigidity.
 High compressive strength.
 High resistance to whether etc
Chemical composition
Grey Iron
Carbon % Silicon % Manganese % Sulpher % Phosphorous %
2.5 – 3.75 1.0 – 2.5 0.4 – 1.0 0.06 - 0.12 0.1 – 1.0
Table 3
Applications
 Machine tool structures.
 Gas or water pipes for underground purposes.
 Cylinder blocks and heads for internal combustion engines etc.
Spheroidal Graphite Iron
Spheroidal Graphite Iron or Nodular Cast Iron is a higher grade of Iron, because unlike structures
in Grey Iron, the graphite in Spheroidal Graphite (SG) Iron is precipitated as Spheroids. This is
attained by adding some spheriodising agents, which changes the solidification characteristics and
account for notarization.
Chemical composition
S G Iron
Carbon % Silicon % Manganese % Sulpher % Phosphorous %
3.2 – 4.2 1.1 – 3.5 0.3 – 0.8 0.2 0.08
Table 4
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CASTING
FERROUS CASTINGS
SG/DUCTILE IRON GREY IRON
Similar to Steel Brittle
Graphite in Spheroidal shape Easy to handle
Low Manganese Rust free
Hardness
Costly
Take more finishing time
Rust free
More elastic
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DEPARTMENTS
Autokast limited has the following departments
 HR Department
 Marketing Department
 Production Planning & Control Department
 Engineering & Pattern Shop Department
 Production Department
 Quality Control & Inspection Department
 Mechanical Maintenance Department
 Electrical Maintenance Department
 Materials Department
 Subcontract Department
 Finance Department
 R&D Department
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HR DEPARTMENT
Human Resources is exactly it says: resources for humans – within the workplace! Its main
objective is to meet the Organizational needs of the Company it represents and the needs of the people
hired by that Company. In short, it is the hub of the Organization serving as a liaison between all
concerned.
To ensure its success, a Company must establish a hierarchal reporting system. The funnel of
responsibility is critical to the efficiency of a smoothly operating business entity in which there is a
clearly defined understanding of who is responsible for what. They provide consultation to a
Company's Management team to identify what the Company's core business and culture is about, and
proceeds to plan and map the Company's Organizational infrastructure to support those needs.
Personnel Management is the specialized branch of Management that deals with people
who are not mere Machines or Commodities or Costs but who are as human as any human beings
are, and who constitute the principal asset of the firm.
Personnel Management is the part of total Management of the Organization, which
specifically deals with the human resources in respect of their
1. Procurement
2. Development
3. Their motivation towards the attainment of the Organizational objectives
The success of modern Organization always depends on the contribution made by the
Employees. An Organization tends to be successful when Employees are satisfied and productive
inspection performing their tasks. The active function of labour factor is needed.HR and
Administration department is an inevitable part of every Organization and in this Organization also it
is performing a number of functions like recruitment, selection, training, placement and development
of staff, job description, job evaluation, merit rating etc. It devices methods of wage payment,
promotions, transfers, provides welfare measures, enters into contract for employment, handles labour
problems and disputes, keep employment records and so on.
HRD and administration department is a specialized branch which deals with the people. This
department services to the use of human resources in an effective manner so as to transform them for
realizing the objectives of the Organization.
In Autokast HRD&A is a specialized branch of Management, which deals with the people. This
department strives to use human resources in an effective manner so as to transform them for
realizing the objectives of the Organization. It aims at relating people at work with the activities
necessary to achieve goals.
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MANPOWER IN AUTOKAST
CATEGORY NO OF EMPLOYEES
Manager 8
Deputy Manager 4
Assistant Manager 11
Engineer 6
Assistant Engineer 21
Assistant Officer 11
Permanent Workers 160
Table 5
TIME OFFICE
The main functions of time office are attendance keeping and payroll preparation. It comes under the
control of personnel department.
Employees can take 12 casual leave and 15 medical leave per year.
13 holydays are allowed for the Company, including 9 Festivals and 4 National holydays.
PUNCHING SYSTEM
Attendance and payroll are maintained using the punching card system. The latest computer
technology (Biometric Technology) is used in punching system. The worker has to insert the card into
the system when he enters as well as leaves the Company. If the worker omits inspection punching the
card, he will not be given the wages for that day. The details of the worker‟s attendance are entered
into the computer everyday with the help of punching system. An electronic worksheet is used for this
purpose. Wages are given to the workers based on the verification of the punching system as well as
the worksheet. The punching card system gives only the attendance of the workers. It gives the
information whether a worker was present or absent during a particular day but not whether he was
working or not. Therefore the time office maintains individual attendance register for each section of
the Production Department. IN Autokast there are 4 shifts which are classified A, B, C and general
shift. The duration is 8 hours for each shift. The timings are:
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Shift Time
General Shift 9.00am to 5.00 pm
A Shift 6.00am to 2.00pm
B Shift 2.00pm to 10.00pm
C Shift 10.00pm to 6.00am
Table 6
RECRUITMENT
Recruitment Process
It is an important function of Human Resource and Administration department. Recruitment
is done by the corporate personal and administration department as per the delegation of powers
issued from time to time. All the permanent Employees are recruited during the starting stage of
Company. Recently Autokast does not make any permanent recruitment. Now they make only
temporary selections. Also apprentices are there to meet the manpower.
Source of Recruitment
 Through Employment Exchange as per the provisions of the Employment Exchange
(compulsory notification of vacancies).
 Through Public Service Commission in respect of posts exclusively reserved for P.S.C
 Promotion of existing Employees from the lower scale who meet the prescribed standard.
 Direct recruitment from outside candidate, who meet the prescribed standards.
 From ITI‟s and RI (Related Instruction) Centre.
Mode of Recruitment
1. Workmen – Vacancies are notified in the Employment Exchanges. A part of the vacancies
are filled up that way and the other, which is earmarked for those who are promoted are
filled through promotions.
2. Executives and Managerial Staff - Vacancies are notified in Employment Exchanges,
newspapers and Professional Employment Exchanges.
3. Trainees and apprentices – Recruitment is done under the provisions of the Apprentice Act
1961.
Recruitment Procedure
Advertisement
Registration &
Screening Interview
Appointment
Manpower
budgets
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Man power budgets : Information about the vacancies
Selection Committee : Representatives from vacancies listed department, from the Human
Resource and Administration department and representatives from other departments. The procedure
also includes,
Advertisement for open selection
Registration and screening
Selection, Interview/wait-listing
Candidate are called for interview
Appointment : It include medical check-up, verification report, signing of appointment order after
approved by appointing authority, joining time, joining formalities, deputation.
TRAINING
Training is also essential for members of staff who have been working for the Organization for a long
time. This is especially so in the wake of technological advancements, legal changes and changes in
service delivery. It is important for an Organization to keep up with Industry trends otherwise it faces
the danger of becoming obsolete; especially in the background of increasing competition. In Autokast,
Kerala State Productivity Council (KSPC) and National Institute of Personal Management (NIPM) are
usually providing training to Employees. It helps to improve work culture.
Training Process
Determining competence.
Collect data on available knowledge and skill and prepare a list of all Employees showing details
about the qualification, experience and training undergone.
Issue training identification formats to section heads along with Employee data every year.
Identify training needs of Employees working under them, file the formats and forward the same to
Head, HRD.
Preparation of training calendar indicating course details and nominations.
Arrange training programmes.
Arrange training to make each Employee aware of the relevance and importance of his activities and
how they contribute to the achievement of Company‟s quality objectives.
Arrange specific training for identified personals as recommended by the HOD‟s.
Maintenance of training documents.
Details of all training programmes shall be documented and maintained properly.
Effectiveness of the training shall be evaluated by concerned HOD within a period of six months after
completion of training and report sent to Head, HRD
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PERFORMANCE APPRAISAL
Performance appraisal is another important function of Human Resource and Administration
Department. It refers to all the formal procedures used in working Organization to evaluate the
personalities, contributions and potential of group members.
It is done yearly.
Done by Department Heads.
Purposes of Appraisal
• It can serve as a basis for job change/promotion
• It serves as a guide for formulating a suitable training & development programme
• It serves as a feedback to the Employee
• It serves as an important incentive to all the Employees
• It tends to make the Supervisors and Executives more observant of their subordinates
• It helps to determine the rewards and privileges
• It can be helpful in selection and placement of workers
• Performance appraisal records of Employees help the Management to give up sole reliance
upon personal knowledge
Evaluation Process
Based on
1) Assessment of job
- Job knowledge
- Planning, organizing, control and coordinating
- Work output
- Cost consciousness
- Attitude to work
- Knowledge of current trends & developments pertaining to his general fields of
work
2) Professional & managerial abilities
- Ability to inspire, motivate & develop subordinates
- Decision making & judgments
- Initiative
- Communication skill
- Theoretical & analytical ability
- Leadership & team building
- Sense of responsibility
- Dependability
-
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3) Personal qualities
- Integrity
- Attitude towards Organization
- Discipline
- Cooperation & team spirit
- Capacity to withstand stress
- Interpersonal relationship
Rating
EXCELLEN
T
OUTSTANDIN
G
GOO
D
SATISFACTO
RY
UNSATISFACTO
RY
PAR
T 1
4 3 2 1 <1
PAR
T 2
12 10 8.5 7 <6
PAR
T 3
5 4 3 2 <2
Table 7
WELFARE ACTIVITIES
Autokast Employee‟s welfare fund is formulated to carry out various welfare activities. The major
supports provided by the fund includes
1. If a member of the welfare fund dies while in service, An amount of Rs 2500 would
be given to his/her dependents for cremation purpose
2. Medical grant of Rs 5000 is provided to the members while in service
3. Voluntary retirement schemes
4. Retirement benefits
5. Death benefit/family benefit schemes
6. SSLC awards for the children of Employees
7. Loan facility for Employees
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Recreation club
Autokast recreation club started its activities on 4th
of October 1986 with the purpose of enhancing
and encouraging various co-curricular activities of the Employees and their family members.
Encourage Art, Cultural and Sports activities of Employee, assistance may be given by the Company
for the formation of Recreation Club in the corporate office and different units/subsidiary units. The
following facilities may be given, provided it is in conformity with the approved by –law
Accommodation at normal rent one-time –amount determined by the Company subscription –
will be deducted from monthly salary as prepayment of wages act.
Assistance of an internal auditor as and when required
Chairman and one member –will be nominated by the Company to the recreation club
Facilities and programs conducted
Library
SSLC cash award
Sports
Indoor games
Veterans meet
Painting competition
Cultural meet
Health programs
INDUSTRIAL RELATION
The Industrial Relation Policy of Autokast is to introduce and establish systems and procedures which
would ensure a healthy Employee-Management relation so as to achieve maximum productivity,
Employee satisfaction and development.
Participation
The Management of Autokast believes that active association of all Employees in various
aspects of productive operations and welfare activities in a true participative spirit is essential for the
creation of a climate of involvement and commitment which alone can motivate them to contribute
their best for the sustained growth and prosperity of the Organization.
The grievances/demands raised by the recognize Trade Unions which command a minimum
strength of 30% of the total strength of workmen in a unit.
The representatives of all recognized trade unions are given equal status during bilateral discussions.
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GRIEVANCE HANDLING
In Autokast there were no much big grievances so far. It is the policy of the Company to settle
grievances at the lowest possible level so that grievances are not prolonged. The object of the
grievance procedure is to provide the workmen of Autokast with an easy and readily accessible
procedure and machinery for the ventilation and prompt redressal of their day to day grievances.
Current Issue
Long Term Agreement (LTA) not performed for so many years. So that Salary revision is not done so
far. Since the Workers in the Company have variable DA, their pay revision is not done due to the non
revisal of LTA.
Scope
Complaints affecting an individual workman in respect of the following matters will constitute
grievances and will be subject to the procedure.
 Payment of wages
 Regarding wage or payment (other than monthly salary)
 Leave
 Inter-department transfer
 Promotion
 Seniority
 Work assignment
 Working condition
Procedure
The procedure to be followed by an aggrieved work man for presentation of the grievances and
procedure for actual settlement is detailed below
a. Informal Redressal
The aggrieved Employee shall first present his grievance orally to his section head within 24
hours of the instance of such grievance and the section head will inquire into the matter and
give his answer orally within 48 hours .a record of such oral grievance will be maintained by
the section head /Supervisor
b. Formal Redressal
Stage 1:
If the matter is not settled through informal redressed and if the Employee finds necessary
he can obtain from the section head/Supervisor a copy of the grievance form 1. This should
be done within one week of the date on which the facts on the basis of which the complaint
has arisen became known to the worker, except that in the case of promotion in question
will be allowed
The section head or Supervisor or his equivalent officer will make the necessary and inform
the workers in the prescribed form with his remarks in the space provided for the purpose
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within one week. If necessary the worker can discuss his case further with the Supervisor in
the light of Supervisor’s remarks.
Stage2:
If the worker is not satisfied with the reply at stage 1, obtained from shop-in –charge or
Supervisor or his equivalent as the case may be, he should obtain a copy of grievance form 2
and enter in the form his reason for re-consideration of his case and submit the form to his
department head, within 3 working days of the receipt of the reply at stage 1 and obtain an
acknowledgement receipt.
The department head will discuss the issue with the Supervisor and with the Employee and
give the reply to the worker with his remarks within 7 days .if not the workman will present
his grievance to the next authority, grievance committee.
Stage 3:
If the worker is not satisfied with the reply from the department head, he may appeal to the
Chairman of the grievance committee in grievance form 3 within 3 days of the receipt of the
reply at stage 2
The grievance committee consists of the following:
1) an officer specifically nominated by the unit head } Chairman
2) Department head or section head } Member
3) One trade union representative } Member
4) Representative of the personal department } Secretary
The above committee will meet at least once in every for on sight, to consider the
grievance if any. Unanimous decision will be communicated within 20 days of receipt of
grievance by the committee. In case of difference, the matter will be immediately referred
to the unit head .cases where the grievance committee feels that the issue involved is of
general importance on which the higher Management alone can take a decision, will be
referred to the chairman & managing director.
The chairman & managing director’s decision on the matter will be final and will be
communicated to the Employees expeditiously, after which the union will be free to take up
the issue as industrial dispute with the legal machinery if deemed
In the above, grievance committee, 3 members will constitute the quorum .the
Management and union can nominate one alternative member each to participate in the
meeting, in the absence of any of their representative.
WAGE SYSTEM
The wage system used in Autokast is the time wage system. Punch card method is used for
time keeping. The net wages and salary distributed comes to about 22.25 lakhs, out of
which about 13.13 lakhs as wages provided for the workmen and the rest 9.11 lakhs is
provided for executives. For overtime work there is no additional benefits, single salary
system is followed for workers.
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DISCIPLINARY ACTIONS
If a workman is found guilty any of the following punishments may be awarded to him
1) Censure or warning
2) Withholding of increments, with or without cumulative effect or postponing of any
increment to any future date with cumulative effect or without cumulative effect.
3) Recovery from his pay of the whole or part of any pecuniary loss caused to the
Company by such misconduct, subject to the provision of payment of wages act.
4) Imposition of fine, up to 2% of his salary in a month.
5) Reversion or demotion to a lower grade or post or time scale or to a lower stage in the
same time scale either permanently or for a specified duration.
6) Suspension for a period not exceeding 4 days at a time without pay or salary or on
such reduced pay /salary as maybe ordered.
7) Barring of promotion
8) Discharge from service, compensation or notice
9) Dismissal
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DEPARTMENTAL CHART
MARKETING DEPARTMENT
The Marketing Department must act as a guide and lead the Company's other departments in
developing, producing, fulfilling, and servicing products or services for their customers.
Communication is vital. The Marketing Department typically has a better understanding of the market
and customer needs, but should not act independently of product development or customer service.
Marketing should be involved, and there should be a meeting of the minds, whenever discussions are
held regarding new product development or any customer-related function of the Company.
Industrial marketing is a set of activities directed towards facilitating and expediting exchanges,
involving industrial products and customers in industrial markets. Industrial markets consist of
commercial manufacturers, government and other institutions. Industrial marketing is different from
marketing of consumer goods. But the ultimate aim remains the same exchange of goods for the
satisfaction of human needs and wants.
Marketing in Autokast is not much aggressive as in FMCG Industries and Autokast uses
only their website as an advertising medium. Autokast is a jobbing Foundry i.e. they produce
MANAGING DIRECTOR
ASSISTANT MANAGER (HR)
ASSISTANT OFFICER (HR)
SKILLED TIME
OPERATOR
UNSKILLED
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items according to customer demands. Hence they don‟t have a fixed product mix. It will vary with
variations in customer demands.
The duty of Marketing Department shrinks to new customer identification and their
evaluation. The new customers will be the firms in the same Industry. When those firms are unable to
meet their production requirements they will turn to other firms in the same Industry. In such
situations the Marketing Department has a crucial role to attract those firms into Autokast.
Marketing Department receives enquiry from the customers. The enquiries including the
drawings, specifications and other details are send to the Engineering department. After receiving the
feasibility study report by the Engineering department, the Marketing Department goes for costing
and pricing activities. The pricing committee consists of representatives from marketing, Engineering
and Finance Department and the managing Director. Quotation is given after the price fixation and
negotiation is made if required by the Marketing Department. On receiving the order from the
customer issues purchase order for Raw Materials and work order to production planning and control
,Engineering ,production and quality control departments. After the production process, the Marketing
Department Despatches the product to the customer.
MARKETING PROCESS
Determination of requirements.
Receipt of enquiry and entering the details in the register.
Preliminary study of the enquiry for adequacy of information and obtaining further details from
customer, if required.
Forwarding the enquiry to Head – Engineering for assessing product requirements, including any
implied, statutory and regular requirements related to the product and for feasibility study as well as
cost/pattern cost estimation.
Review of requirements.
Feasibility study involving chief of Production. The study group shall make sure that,
1) Product requirements are defined
2) Requirements differing from those previously expressed are resolved
3) The Organization has the ability to meet the defined requirements
Return the Feasibility Report and Cost Estimation to Marketing.
Preparation of draft quotation and obtaining approval from MD.
Negotiation with the customer, obtaining Purchase Order/Contract, verification of the same with
proposal after resolving differences if any with the customer.
Issue of Work Order with relevant documents.
Negotiation with the customer and finalization of changes in the contract if any, found necessary
during course of development / regular production.
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Getting those amendments formally confirmed by the customer and communicating the same to
concerned departments. In case of repeat order, issue of work order shall be after ascertaining
capability of meeting delivery requirements.
MARKETING STRATEGIES
Making highly sophisticated and modern facilities for inspection and quality control, the firm has no
difficulties in challenges of job. In this field it has dependable supplies of quality Castings and
economic supplies. The Company follows the guidance such as production of high quality Castings,
provided inspection to ensure uniform and rigid quality control, the firm represents automated
breakthrough in Indian Foundry Industry and grading to better international standards.
MARKETING MIX
The primary duty of Marketing Department is to take decision of product mix, price mix, and
promotion mix together known as marketing mix. The Marketing Department of Autokast aims at
improved customer satisfaction through reduced rejection and complaints at customer ends. Thus they
ultimately aim at improvement in business which can be achieved through large export volume as
well as through the domestic customers.
PRODUCT MIX
The important features of industrial goods that should be kept in mind while deciding the
product mix is that they have a derived demand, limited number of buyers, greater scale of
purchase, complex nature and that the buyers are fully aware of the product they buy.
Autokast Ltd is equipped to produce a variety of Castings, from the smallest to the largest.
Since the firm had been incurring losses for some time now, the most important consideration is
the proper product selection, so as to reduce the losses. The main factors taken into consideration
while selecting a product are:
1. Price – Price is the single most important factor considered while selecting a product
2. Quantity and Consistency of Orders – While bulk orders are received, due to economy of
mass production, the costs can be reduced. So for bulk orders, the primary consideration is
the price negotiation. In the case of some products, where customer is well known and has
a well-established business, the Company can expect repeated orders. In such cases too,
prices are often negotiated.
3. Simplicity of the Manufacturing Process – To generalize, the more complex the product
becomes, the more will be the cost of production. So Castings, which has complex
structures like cylinder blocks have higher cast of production, and simpler Castings like
pipe Castings, which are less complex, have less cost of production. Giving due
consideration to the above factor the Company has almost abandoned the production of
thin walled Castings like cylinder blocks for automobiles.
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PRICE MIX
Price is the exchange value placed on the product. It is a very important factor, which
affects the profitability of the firm, because it relates directly to the generation of total revenue.
There are various methods of pricing that could be followed. In Autokast the pricing
method followed is the “cost plus pricing” where a fixed percentage of profit is added to the cost of
production to arrive at the price. In this method, the total cost is considered. It consist of
manufacturing cost, administration overheads and selling and distribution overheads. To this a
fixed percentage of profit is added, and thus the price is fixed. Usually provisions are provided for
all losses, like melting losses, Casting losses and rejections.
PLACE MIX
It refers to the distribution channel adopted to place the products before the customer.
Though there are a variety of distribution channels, industrial goods usually have a shorter
distribution channel. In Autokast about 95% of the distribution is done through the direct channels.
Direct channel represent a distribution channel in which the Company directly distributes the
products to the customers. This method can be conveniently followed because the customers are
less in number, and can be given individual attention. The rest 5% is done through agencies for
exports, a Madras agency sources orders for Autokast. Besides that, an agency in Pune, Sividha
enterprises, performs liaison functions in West India. Jabalpur agency is one another agency in
North India for Autokast.
PROMOTION MIX
Promotion is the process of communicating with customers. For marketing purposes, communication
of products and services contributes to the persuasion process to encourage consumers to avail
themselves of whatever offer.Autokast mainly done their promotional activities through various
exhibitions conducted at International Foundry Bangalore.
LOCATING CUSTOMERS
Autokast does not advertise in any medias. Though it has an attractive brochure, designed by the
leading advertising agency ULKA, with the attractive caption, “If you can design it, we can cast it”,
it has never been used for commercial advertising. Since the firm does not advertise, sourcing of
customers is a major duty of the Marketing Department in Autokast. Usually it is done
 From Experience – Almost all the managers and executives in Autokast are those who
have had previous experience in foundries. So from their prior experience, they are in a
position to know the people who need particular Castings.
 Organizations like EEPC – Engineering Export Promotion Council (EEPC) is a government
Organization promoting our Engineering goods abroad. They conduct trade fairs and
provide brochures, which contain specifications of Industries and the facilities available.
Autokast is included in EEPC’s brochure.
 Media – Customers, who are in need of the Castings, usually advertise their enquires,
tenders etc in newspapers.
EXECUTION OF THE CONTRACTS
Mere sourcing of the customers is not enough. In fact, it is the first step from which the lengthy
process of gathering and execution of contracts for production and supply of Castings.
Normally execution of contracts proceeds through different steps.
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They are:
Step 1 – Sourcing the Customers
Step 2 – Contacting the Prospective Customers
Step 3 – Receiving Enquiries from Interested Customers
Step 4 – Prospects of Feasibility of Production is Enquired
Step 5 – If found Feasible, Quotations are Sent
Step 6 – Customer Reaction
Step 7 – Receiving Purchase Order
Step 8 – Preparing Internal Work Order
Step 9 – Follow up of the Production
Step 10 – Shipment
Step 11 – Collection of money and further extension orders
COMPLAINT HANDLING
Register all complaints from customers allotting a number with date and time of receipt and
acknowledge within a day.
Study the complaint to see whether the complaint is of technical or commercial nature. If the nature of
complaint is not clear, seek clarification.
Complaints of commercial nature shall be settled within a period of 72 hrs from the receipt of
complaint in consultation with the MD/Financial Chief.
Complaints of technical nature shall be directed to PM with a copy to MRs Office within 24 hrs of
receipt.
Plant Manager shall analysis the nature of complaint and direct it to concerned HOD like,
 Complaints of dimensional deviations to Engineering and Inspection.
 Due to failure of material property to QC.
 Improper inspection procedure, to inspection.
 Delay in delivery and damages occurred during transportation handling, packing etc to
Dispatch section (PPC/Marketing).
Department Heads shall analysis the problem and report their observations like
 Cause of the non-conformity
 Suggested disposition date
 Corrective action plan
 Preventive action plan, all with a target date
PM shall approve the action plan proposed by concerned HOD and return it to Marketing through
MR‟s Office.
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Inform the customer about the proposed disposition and due date.
Interact with the customer to assure that the complaint has been addressed and disposed of to their
satisfaction and close the complaint.
Update the Complaint Log at stages of progress and send a monthly summary to MR for presenting in
the MRMCorrective action Report shall be discussed along with customer complaints in MRM as one
of its main agenda.
Measuring Customer satisfaction
Measure the level of customer satisfaction by getting AKL questionnaire filled by the customer
periodically and calculating an index of customer satisfaction.
An alternate method to calculate customer satisfaction, taking mainly two aspects like customer
complaints and customer returns shall be
For each percentage of customer complaints (A) one negative point
For each percentage of customer rejection quantity (B) two negative point
Then,Customer satisfaction Index = 100 - (A+B)
To work out this, with the presently set target of customer complaint and customer returns.
Number of complaints, 7. Then 7*1=7 negative points (A)
Customer return per cent, 4% Then 4*2=8 negative points (B)
Adding A+B its is 15 negative points
Then customer satisfaction index minimum=100 – (A – B) = 100 – 15 = 85
MARKET SHARE OF MAJOR PRODUCTS
Figure 4
20.31
18.02
9.499.46
7.06
4.94
5.48
5.82
2.85
7.67
7.18
Shares
Macawber Beekay
Kakati
Fouress
Kamco;Athani
Triveni Gears
L & T LTM
Kamco;klsy
Koso
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MAJOR CUSTOMERS
Sl No CUSTOMER SECTOR
1 Kamco Power tiller
2 Macawbwer bekay Ash handling
3 United Conveyor Corporation Ash handling
4 Pioneer Wincon Wind mill
5 Reliance Energy Wind mill
6 Fourees Engg Valve
7 Flowserve Valve
8 Kakati Karshak Vacuum pump
9 L&T Units Heavy Engineering
10 Ace Designers Machine tool
11 Triveni Engineering Heavy duty gear box
12 Shriram EPC Wind mill
Table 8
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EXPORTS
Autokast has been exporting its products to America and Saudi Arabia, since 1989. Now
approximately 10% of the total annual production is exported. The Castings, which are exported,
are all GI Castings.
Foreign customers are:
1. National Pump Company, USA.
2. J-line Pump Company, USA.
3. Saudi National Pump Company, Riyadh.
The most important benefits of exports are that the Company gets a higher price for its products
when exported and that the payments are made in cash.
MAJOR COMPETITORS
The major competitors of Autokast Limited are the following:
1. LMW Foundry, Coimbatore
2. Simplex Castings, Bhilai
3. Southern alloy foundries, Chennai
PRODUCTION PLANNING & CONTROL DEPARTMENT
Production planning is the process of planning production in advance of operations, routing
the materials and controlling the whole production accounting to the plans specified and scheduled.
This department takes care of feeding and supporting materials such as sand, coal dust etc. to the
production.
The PPC department plans the product realization process. They Prepare the production and despatch
schedule, material planning ,production follow-up, despatch and improvements. The department also
monitors the stage wise progress of the process and it is recorded.
SCOPE
Planning of product realization, Control of production, Control of nonconforming products, Analysis
of data.
BRIEF DESCRIPTION OF PROCESS
Preparation of production and despatch schedule - Material planning - Production follow up -
Despatch - Improvements
PROCESS PLANNING
Based on work order, collected all input documents from Marketing Department and check the input
for adequacy, if inadequate, call for required data.
Prepare pattern method drawings and arrange to manufacture.
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Customer supplied patterns are to be inspected and if any modification is required, arrange for the
same.
If patterns are to be procured from vendors, forward four sets of pattern drawing to Purchase
Department to arrange procurement.
Major raw material requirements are assessed and necessary indents are raised for procurement
Prepare a draft quality plan and circulate it to Production, Quality Control and Inspection
Departments.
Open up a product file which shall contain all input documents together with method drawing and
copy of quality plan.
Based on quality plan, make arrangements for necessary inspection and testing activities.
PRODUCTION PLANNING
Based on work order from Marketing Department, monthly schedule for pouring, Fettling and related
activities shall be prepared.
Copy of this planning sheet shall be distributed to all concerned departments, under intimation to MD
& PM.
Despatch schedule for the month shall be prepared and communicated to concerned departments.
Progress of these activities shall be closely monitored and status reported to MD/PM via a daily
report. This report shall contain production figure for the previous day, and cumulative till date, of
pouring, Fettling machine and that of despatch and rejection.
Requirements of major Raw Materials for Engineering and Pattern shop shall be planned and
purchase requisition raised accordingly.
Product stock position shall be maintained up to data and monthly stock position prepared and
submitted to MD.
Physical verification on inventory of Castings shall be done annually and report submitted to MD.
RECORDS MAINTAINED
 Pouring plan
 Production, Despatch consolidated report
 Fettling plan
 Despatch Monthly
 Despatch plan
 Inventory as on date
 Daily production report
 Physical stock of Castings
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PROCESS
ENGINEERING AND PATTERN SHOP DEPARTMENT
Consist of Engineering and Pattern shop Departments. The Engineering department designs the
product and the pattern shop makes the pattern for that product. In Engineering and Pattern Shop
Department of Autokast, pattern of the object to be casted is constructed according to the sample
provided by the customer. The sample may either be a drawing or the one in the form of what
customer needs.
OBJECTIVES
 Time taken for development of Casting should be within 30 days
 Manufacturing/servicing of pattern equipment has to be set as per time
 90% of timely submission of feasibility report
 Number of attempts to develop a Casting shall be reduced to maximum of 3 times
PROCESS
ENGINEERING
Engineering department receives the work order from the Marketing Department with
customer drawings and all necessary documents. The department checks some factors with regard to
the order such as
 Weight
 Order quantity
 Materials required
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 Complication
 Other technical details
And submit the feasibility report back to the Marketing Department. After receiving the real
work order they design the pattern, prepare and issue the process drawing to the manufacturing
department. The departments also issue process cards and also do the follow up of sample
development and maintain the sample development register.
PATTERN SHOP
Pattern shop is responsible for the pattern inspection, rectification/modification and
periodical checking of patterns. A Pattern is a mould forming tool in the hands of Foundry men. A
Pattern is a mould or the replica of the object to be cast. A Pattern is required even if one object has
to be cast. A Pattern may be defined as a model or form around which sand is packed to give rise to a
cavity known as mould cavity in which when molten metal is poured, the result is the Cast Object.
Patterns are normally made up of wood, thermo coal etc. Patterns either customer supplied or
manufactured in house or by sub-contractors are to be inspected with reference to corresponding
drawings and inspection reports are prepared. In case of any rework the same shall be carried out
and offered for inspection. Pattern is released for production only after inspection clearance.
Selection of Pattern Materials
The following factors assist in selecting proper pattern material
1) The number of Castings to be produced. Metal Patterns are preferred when the production
quantity is large.
2) The desired dimensional accuracy and surface finish required for the Castings.
3) Nature of moulding process.
4) Method of moulding.
5) Shape, complexity and size of the Casting.
6) Casting design parameters and the complexity of the cast part.
7) Type of moulding materials.
8) The high probability of changing the Casting and hence the pattern in near future. An
inexpensive pattern material under such conditions.
9) The chances of repeat orders.
Types of Patterns
For selecting a particular kind of pattern for making a Casting, one may consider the following
points:
 Quantity of Castings to be produced
 The size and the complexity of the shape of the Casting to be produced
 Type of moulding method to be used
 Problems associated with the moulding operation such as with-drawing the pattern from the
mould etc
 Other difficulties resulting from poor Casting design or pattern design.
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In Autokast mainly two types of Patterns are used:-
Match Plate Pattern – It consists of a match plate, on either side of which each half of a number of
split patterns is fastened.
Split Pattern – Patterns of intricate Castings cannot be made in made in one piece because of the
inherent difficulties associated with the moulding operations. Such patterns are then made as Split
Patterns.
Pattern Making Tools
1) Measuring, Making and Layout Tools
 Steel rule
 Caliper
 Marking gauge
 Trisquare
 Shrinkage rule
 Divider
2) Tools for Clamping Purpose
 Hand vice
 C – clamp
 Bar clamp
 Hand screw
3) Sawing Tools
 Coping saw
 Compass saw
 Bow saw
 Panel saw
4) Drilling and Boring Tools
 Hand drill
 Gimlet
 Auger bit
 Centre bit
5) Wood Planning Tools
 Jack plane
 Block plane
 Circular plane
 Universal plane
 Smooth plane
Pattern Making Machines
 Wood Turning Lathe : Make cylindrical patterns
 Circular Saw : Used for ripping, cross cutting, grooving
 Band saw : Used to obtain irregular shapes
 Scroll Saw : Make intricate & irregular cuts on small jobs
 Drill Press : For drilling and boring the holes
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Pattern Colors
Patterns are imparted certain colors and shades
 Black – Core surfaces to be left unmachined
 Red – Cast surfaces to be machined
 Red strips on yellow base – Loose pieces and seatings
 Yellow – Core print seats
 Black strips on a yellow back ground – Stop offs or supports
 No color – Parting surfaces
 Yellow stripes on black back ground – Core prints for machined openings.
Records Maintained
Register:-
 Original drawing details
 AKL drawing details
 Drawing issue
 AKL drawing issue
 Process Sheet details
 Pattern details
 Pattern Shop load details
 Pattern Shop log
 Pattern inspection clearance
 Pattern and Casting Inspection
Formats:-
 Process sheets
 Pattern movement card
PRODUCTION DEPARTMENT
Production denotes the conversion of Raw Materials to semi-finished or finished products with the
help of certain production processes. The main aim of any production system is to produce
economically the goods and services required by the customer.
Autokast Ltd is a Foundry unit producing Iron Castings for a variety of Industries. The Iron Castings
are made of Cast Iron. Cast Iron is a general term that describes Iron, carbon, silicon alloys which are
produced by pouring the molten metal into sand / metal moulds. Cast Iron is brittle and grey in colour.
The carbon content in Cast Iron is more than that in Steel which makes it less malleable. By varying
the silicon and carbon content at alloy, several types of core Iron can be produced each with different
properties and uses.
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PRODUCTS OF AUTOKAST
The Company‟s products at present cater to the needs of following segments of Indian and
overseas Industries
1. Automotive
2. Tractor
3. Butterfly valve assembly
4. Agriculture
5. Wind mill energy and
6. General Engineering Industries
DEPARTMENTS
The manufacturing department of Autokast limited is divided into four divisions .They are,
1. Melting
2. Conventional line
3. High pressure line
4. Fettling
1. MELTING
Before pouring into the mould, the metal to be cast has to be in the molten or liquid state. The raw
material melting process is done in the melting department. For the preparation of liquid metal the
Raw Materials like CRCA(cold rolled continuously annealed)scrap and HMI(heavy melting )scrap are
brought to the Induction Furnace. The scrap is charged to the furnace with the help of electro magnet
hooked in EOT cranes, the furnace can withstand a capacity of 6T with holding attachment and with a
change over control system. Furnace is heated to about 1450 degree Celsius(including the loss due to
transportation of liquid metal from the furnace to the pouring moulds).the slag is skimmed off from
the molten metal by adding coagulant. The liquid metal is tested for its grades in comparison with the
standards (eg: different grades of IS 210 for Cast Iron). The samples are tested at each stage of
melting. The extra/excess chemicals components are added/removed to achieve the specification.
Temperature of the liquid metal is adjusted by the electrical settings of the furnace and measured with
measuring instrument(pyrometer)and is recorded in the log sheet. Finally the molten metal is tapped
into clean pre heated Laddle and required quantity of inoculants is added to the stream for the purpose
of homogeneous structure of metal Castings. Liquid metal is carried in this Laddle and is poured into
the previously prepared moulds for the testing of final chemistry Laddle sample is taken.
The other melting components are Foundry returns, pig Iron, coke(both petroleum
and shell),Ferro silicon alloys, ferromanganese, nickel ,copper, aluminum, molybdenum,
ferrotitanium etc.
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Records Maintained
Register:-
 Lining details
 Laddle details
Formats:-
 Log sheet
 Charts
 Metallurgical control for HP Line
 Metallurgical control for Conventional Line
 Alloy addition
2. CONVENTIONAL LINE
This is the semi-automated division of the manufacturing department. The main raw material used for
mould making is silica sand. This silica sand is treated with sodium silicate, dried and mixed with
flour dust and is filled into the pattern box. Carbon dioxide gas is passed through the sand for
strengthening (CO2 process).then the core assembly is fixed. The moulds are painted with spirited
paint for further finish. The metal pouring path is fixed and the liquid metal from the Laddle is poured
through this.
After a proper setting time the product is separated from the moulds and is dispatched from the
section for finishing.
Records Maintained
Register:-
 Mould shop planning
 Core shop planning
 Closing
 Daily production
 Consumption of materials
 Mould box maintenance
 Knock Out
Formats:-
 Daily production report
 Pattern inspection
 Knock Out and Decoring
 Check points for closing

3. HIGH PRESSURE LINE
High pressure line is fully automated. Green sand is the material used for high pressure molding at
first the molding machine is inspected and the good working condition is ensured. The molding
machine is operated at 6 to 7 kg/cm2
.at first the sand mix(silica sand mixed with Bentonite and
Mentacoal).is made available to the machine in the pattern box. The sand mix is thoroughly rammed
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
Dc School Of Management & Technology Page 67
in the box to the required compactness by applying pressure. The core is placed for cavity formation.
The metal is poured by the Laddle facility.
Casting identification marks such as Sl No., month and year is punched in the specified area
marked in the pattern and details recorded in the register. After a dwelling time of four to five hours
the moulds are knocked out. The return sand shall be collected in an overhead hopper by means of
conveyor belt and bucket elevator. Casting is sent to the decoding shop for further process. The
molding box are cleaned, inspected and returned to mould box yard. All the mould boxes shall be
identified by its size and serial number.
Records Maintained
Register:-
 Sand property
 Production details
 Core production
 Core shop consumption
 Stock position of cores
 Pouring reports
 Mould box details
Formats:-
 Daily production planning
 Daily production report
 Daily core production report
4. FETTLING
Fettling is the process by which unwanted parts of the Casting are cut off, cleaned and finished .this
includes removal of gates ,risers from Casting etc .The Castings are send to the shot blasting machine
from which Iron shots are blasted at high velocity and proper finishing is established.
Records Maintained
Register:-
 Castings for Fettling
 Castings to sub contracts
 Painting details
 Rejection details
Formats:-
 Production report
 Finished product return no
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
Dc School Of Management & Technology Page 68
PRODUCTION PROCESS
Metal
5)Melting
5)Handlin
g molten
metal
2)Sand
Additives
1)Pattern
Making
3)Core
making
and
Sand
2)Sand
mixing and
preparation
4)Moulding
4)Mould
assembling
and handling
6)Pouring
7)Shaking out
8)Fettling & Finishing
9)Heat Treatment
10)Inspection & Testing
PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA
Dc School Of Management & Technology Page 69
STAGE 1 – MOULDING SAND
A mould material is one, out of which the mould is made. A mould material should be such that
the mould cavity retains its shape till the molten metal has solidified. Sand is the principal
moulding material in the Foundry Shop where it is used for all types of Castings. The most
important characteristics of sand are its Refractory nature, Chemical Resistivity, high degree of
Permeability and Flexibility. These properties vary from sand to sand and only those sands
characterized by the foregoing features are considered for moulding work.
In Autokast Silica sand is mainly used for moulding.
Sources of Silica sand :-
- River beds
- Sea
- Lakes
- Desert
Properties of Moulding Sands :-
 Flow ability
 Green Strength
 Dry Strength
 Hot Strength
 Permeability
 Refractoriness
 Adhesiveness
 Collapsibility
 Fineness
 Bench Life
 Coefficient of Expansion
 Durability
MATERIALS USED AS ADDITIVES TO SAND
Two types of additives used with sands in AKL are:
1. Reducing agents: These are used to improve surface finish of the Castings. Coal dust and
pitch are the most common reducing agents. Coal dust suppresses the formation of silicates
or Iron oxides due to the reaction of metal and sand and also reduces metal penetration.
2. Binders: The primary purpose of binders is to influence the bonding properties of sand.
Dextrine is the common organic type of green binder used in AKL. Dextrine increases air
setting and collapsibility. It prevents sand from drying rapidly.
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Sreeniprjct autokast ltd final

  • 1. PROJECT REPORT ON WORKINGCAPITAL MANAGEMENT IN AUTOKAST Ltd Submitted in partial fulfilment of the requirements for the award of the degree of Master of Business Administration of University of Kerala Submitted by: SREENI ANILKUMAR (Reg. no.13460040) Under the Guidance of PROF: ANOOP NAIR DC School of Management and Technology KINFRA Film & Video Park Sainik School (P.O) Kazhakoottam Thiruvananthapuram 695585
  • 2. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 2 DECLARATION I hereby declare that the project report entitled “A study on working capital management” with reference to “Autokast Ltd”, cherthala written and submitted by me under the guidance of Mr Anoop Nair, professor in MBA department, DC SCHOOL OF MANAGEMENT AND TECHNOLOGY, TRIVANDRUM. The findings in the project report are based on the data collected by me from “Autokast Ltd”.Also I declare that this project has not been submitted for the award of any degree from any university.
  • 3. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 3 ACKNOWLEDGEMENT Firstly I, express my gratitude to Almighty god with whose grace this education has been possible to me. First And foremost, I would like to express my sincere thanks to Mr.P.V.Jitesh, Asst Manager HRD& Administration, and all other staffs of finance as well as other departments for the bestowing on me this rare opportunity to undergo my study in such an esteemed organisation. I remember with profound gratitude and invaluable help rendered by him to me for the successful completion of this project. I am deeply obliged to Mr .V.Gopakumar, Director, DC SCHOOL OF MANAGEMENT AND TECHNOLOGY,TRIVANDRUM.I place my heartfelt gratitude of special thanks to my project guide Mr.Anoop Nair ,who helped me at all time with valuable suggestion to enable me to carry out the project with great confidence and enthusiasm. I am greatful to all my friends and relatives who extended their co-operation and encouragement for doing this project. Above all I wish to utilize this opportunity to acknowledge faith in almighty. Without his blessings, this project would have reached nowhere.
  • 4. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 4 CONTENTS SI .NO TITLE PAGE .NO CHAPTER - 1 INTRODUCTION 8 CHAPTER -2 INDUSTRY PROFILE 10-15 CHAPTER -3 COMPANY PROFILE 17-87 CHAPTER -4 LITERATURE REVIEW 89-103 CHAPTER -5 FINANCIAL ANALYSIS OF DATA 105-134 FINDINGS,SUGGESTIONS,CONCLUSION BIBLIOGRAPHY APPENDIX 136-139 140
  • 5. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 5 LIST OF TABLES Table no Table Name Page no 1. AUTOKAST LTD at a glance 19 2. List of major products at Autokast Ltd 21 3. Chemical composition 38 4. Chemical composition 38 5. Manpower in Autokast 43 6. Punching system 44 7. Evaluation process -rating 47 8. Major customers 58 9. Schedule of changes in working capital (2009-10) 106 10. Schedule of changes in working capital (2010-11) 107 11. Schedule of changes in working capital (2011-12) 108 12. Schedule of changes in working capital (2012-13) 109 13. Schedule of changes in working capital (2013-14) 110 14. Current ratio 111 15. Quick ratio 112 16. Absolute liquidity ratio 113 17. Inventory turnover ratio 115 18. Total asset turnover ratio 116 19. Fixed asset turnover ratio 117 20. Current asset turnover ratio 118 21. Current asset to fixed asset ratio 119 22. Current asset to total asset ratio 120 23. Debtors turnover ratio 121 24. Working capital turnover ratio 122 25. Net profit ratio 123 26. Administrative expense ratio 124 27. Operating profit ratio 125 28. Proprietary ratio 127 29. Current asset trend 129 30. Current liability trend 130 31. Fixed asset trend 131 32. Working capital trend 132 33. Sales trend 133 34. Gross profit trend 134
  • 6. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 6 LIST OF FIGURES Figure no CHART NAME Page no 1. Metal casting share in percentage 11 2. Top ten casting producing countries 12 3. Share of no of small and medium foundry industry in total - India 14 4. Market share of major products 57 5. Current ratio 112 6. Quick ratio 113 7. Absolute liquidity ratio 114 8. Inventory turnover ratio 115 9. Total asset turnover ratio 116 10. Fixed asset turnover ratio 117 11. Current asset turnover ratio 118 12. Current asset to fixed asset ratio 119 13. Current asset to total asset ratio 120 14. Debtors turnover ratio 121 15. Working capital turnover ratio 122 16. Net profit ratio 123 17. Administrative expense ratio 124 18. Operating ratio 126 19. Proprietary ratio 127 20. Current asset trend percentage 129 21. Current liability trend percentage 130 22. Fixed asset trend percentage 131 23. Working capital trend percentage 132 24 sales 133 25. Gross profit trend percentage 134
  • 7.
  • 8. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 8 INTRODUCTION The primary purpose of this study is to fulfilment of the requirements for the degree of MBA. For this I conducted my Study in Autokast Limited, Cherthala for a period of one month. The era of liberalization has opened up new vistas for Indian Economy. In the fast changing economic scenario it is imperative for every aspiring entrepreneur to have a vivid understanding of the functional application of the new age business. The study was about the analysis of working capital management in autokast ltd. Well-managed working capital is crucial to the running of a healthy and successful business. In simple terms, working capital is the cash available for the day-to-day running of the business, used to settle regular bills such as wages and supplies, and also covering unplanned costs and unexpected expenses. An important part of working capital management is a company's cost structure. Working capital represents the liquidity available to a business, and can be calculated in various ways. Gross working capital is the entire sum of a company‟s current assets; net working capital (NWC) stands for the company‟s current assets minus its current liabilities, and represents the actual amount available at any given moment. Working Capital is the life blood of every business concern. Business firm cannot make progress without adequate working capital. Inadequate working capital means shortage of inputs, whereas excess of it leads to extra cost. So the quantum of working capital in every business firm should be neither more nor less than what is actually required. The management has to see that funds invested as working capital in their organization earn return at least as much as they would have earned return if it invested anywhere else. At the time of increasing capital costs and scare funds, the area of working capital management assumes added importance as it deeply influences a firm's liquidity and profitability. A notable feature of utilization of funds is that they are of recurring nature. Therefore, efficient working capital management requires a proper balance between generation and utilization of these funds without which either shortage of funds will cause obstruction in the smoother functioning of the organization or excess funds will prevent the firm from conducting its business efficiently. So the main objective of working capital management is to arrange the needed funds on the right time from the right source and for the right period, so that a trade-off between liquidity and profitability may be achieved. A firm may exist without making profits but cannot survive without liquidity. The function of working capital management organization is similar that of heart in a human body. Also it is an important function of financial management. The financial manager must determine the satisfactory level of working capital funds and also the optimum mix of current assets and current liabilities. He must ensure that the appropriate sources of funds are used to finance working capital and should also see that short term obligation of the business are met well in time. Through the study of working capital management I can able to understand the total current assets, current liabilities, companies day to day operations etc.
  • 9.
  • 10. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 10 INDUSTRY PROFILE OVERVIEW The Indian Foundry Industry produces approximately 7 Million MT of Castings employing estimated 500,000 persons directly & another 1.5 million indirectly. The growth of Foundry Industry is very important for inclusive growth, other Engineering sectors & the overall Indian Economy Foundry Industry is the basic Engineering Industry, the product of which is used by almost all people. Virtually each and every industrial process needs Castings of one type or the other. All forms of transport do require to a major extent the Foundry Industry production. Founding or Casting is the process of producing metal /alloy into a prepared mould and then allowing the metal/alloy to cool and solidify. The solidified piece of metal/alloy is known as a Casting. Founding or Casting is one of the oldest manufacturing processes, which dates back to approximately 4000BC. The first Foundry centre came into existence in the days of Shan Dynasty in China. A number of foundries using Cast Iron as the structural material came into being after the industrial revolution. The Indian Foundry is striving to rewrite its history and emerge as automated green Industry. India is currently one among the 10 largest producers of ferrous and non-ferrous Castings and has over 6500 foundries in the small, medium and large –scale Industries. The Indian Foundry Industry occupies a special place in shaping the country‟s economy. India is currently among the 10 largest producers of ferrous and non- ferrous Castings and has over 6500 foundries in the small, medium, and large scale sectors. Approximately 90% are in the small scale. India exports annually above Rs.700/- crores worth of Castings to countries like USA, U.K., Canada, Germany etc. There are more than 5,000 Foundry units in India, having an installed capacity of approximately 7.5 million tons per annum. The majority (nearly 95%) of the Foundry units in India falls under the category of small-scale Industry. The Foundry Industry is an important employment provider and provides direct employment to about half a million people. A peculiarity of the Foundry Industry in India is its geographical clustering. Typically, each Foundry cluster is known for catering to some specific end-use markets. For example, the Coimbatore cluster is famous for pump-sets Castings, the Kolhapur and the Belgaum clusters for automotive Castings and the Rajkot cluster for diesel engine Castings.
  • 11. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 11 SIGNIFICANCE OF FOUNDRY INDUSTRY Foundry Industry is Major Feeder to following sectors:-  Automobiles & Auto Components  Railways  Power Sector  Tractor Industry  Earth Moving Machinery  Pumps, Compressors, Pipes Valves & Pipe Fittings  Electrical/Textile/Cement/Agro Machinery  Machine Tools & Engineering Industries  Sanitary Castings  Engineering Exports Approximately 32% Output of Foundry Industry goes to Auto Industries & Balance to other downstream Engineering Sector. Automotive Mission Plan (AMP) 2006-2016 envisages 4 Fold Growth by 2016. I.e. from$34 Billion Industry to $ 122-160 billion Industry and employing about 25 million by 2016. AMP 2006-16 will drive demand of Castings from Foundry Industry. Corresponding Growth in Foundry Sector vital to sustain growth in Auto & other Engineering Sectors. Graph below Depicts Types of Metal Castings Share in % Figure 1 Series1, Grey Iron, 70, 70% Series1, Ductile Iron, 9, 9% Series1, Steel, 12, 12% Series1, Non Ferrous, 8, 8% Series1, Others, 1, 1% Types of Metal Castings Share in % Grey Iron Ductile Iron Steel Non Ferrous Others
  • 12. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 12 Graph below Depicts Top Ten Casting Producing Countries Figure 2 THE INDIAN CASTING INDUSTRY India ranks 6th country in the world for producing an estimated 6 Million MT of various grades of Castings. The various types of Castings which are produced are ferrous, nonferrous, Aluminium alloy, graded Cast Iron, ductile Iron, Steel etc. for application in automobiles, railways, pumps compressors and valves, diesel engines, cement/electrical/ textile machinery, amongst others. The Grey Iron Castings have a major share of 70 per cent of the total Castings produced. There are approximately 4,500 units engaged in Castings, out of which 80 per cent can be classified as small-scale units and 10 per cent each as medium and large-scale units. The Industry is a labour intensive one, employing about 5, 00, 000 people directly and an additional 1,50,000 people indirectly. The small units are mainly dependant on manual labour. However, the medium and large units are semi or fully mechanized and some of the large units are world class. The Industry is organized in clusters in various regions like Agra, Belgaum, Chennai, Howrah, Coimbatore, Chennai, Kolhapur, Ludhiana, Pune and Rajkot. Each cluster has its own niche products for its user Industries. Series1, Korea, 2.1 Series1, France, 2.4 Series1, Italy, 2.6 Series1, Brazil, 3.4 Series1, Japan, 5.7 Series1, Germany, 5.8 Series1, India, 7 Series1, Russia, 7.8 Series1, USA, 10.8 Series1, China, 33.5 Million MT Top Ten Casting Produsing Countries (Figures in Million MT)
  • 13. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 13 THE PRODUCT MIX The Industry is trying to focus on higher value added products to face competition globally. It may be noted that 62 per cent of the Casting production is catered by China, European Union and US. The shortage of scrap and pig Iron in EU continues to affect its cost of Castings, forcing them to look to China and India for cost effective Castings. The production of Castings grew from 2.76 million MT in 97-98 to 7.77 million MT in 2007- 08. This is a 300 per cent jump in production capacity in a decade. It was the growth in the automobile Industry that provided the major thrust in the Castings Industry. COMPETITIVE ADVANTAGE India has a major competitive advantage over the Castings Industry in the developed Countries. Here the total labour cost is low compared to that of the US and EU. Here Labor cost accounts for 12-15 per cent of the product cost. The Indian government has encouraged technology transfer through a joint venture (JV) with foreign companies. The Foundry Industry has an edge over China as well – it is able to produce complex Machine and precision Castings as per international quality standards. The clusters in Belgaum, Coimbatore and Howrah are undergoing modernization under the Industrial Infrastructure up gradation scheme INVESTMENT India would need approx. $ 3 Billion in investment to meet the demand of growing domestic Industry and strong export drive. Following the economic reforms the Government of India has reduced tariffs on imported capital goods. As a result, the annual average amount of FDI is reported to have increased; but is still one tenth of the annual FDI in China. The reforms encourage the privatization of Industry, enabling foreign companies to invest or enter into joint ventures with Indian Foundries. Several International Corporate from USA, EU and East Asian countries have increased overseas Foundry operations in India. I.e. VOLVO foundries in Chennai and Suzuki in Haryana. Sundaram Clayton has joined hands with Cummins. Hyundai Motors, Delphi. Ford India, Tata‐Cummins, GM and Ford have contracts of Foundry products for export with a value of $ 40 Million. RAWMATERIAL & ENERGY Since 2003, the steep increases in cost of Raw Materials and energy have resulted in the closure of approx. 500 units. Overall, India is exporter of Pig Iron; but must import Scrap metals and coke, etc. Cost recovery for material and energy is very difficult as most contracts are long term contracts
  • 14. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 14 without any clause for price adjustment. Moulding sand is locally available & India has an advantage on this account. Energy cost typically varies between 12‐15%. LABOUR India has major competitive advantage over the Foundry Industries in the developed countries. The total labour cost account for 12‐15 %. But availability of skilled labour becomes an issue; bothering many Industries including the Foundry Industry. TECHNOLOGY The Government of India (GOI) has encouraged technology transfer through a Joint Venture (JV) with foreign companies and the GOI has cooperated with UNIDO with many Foundry clusters. The Indian Foundry Industry has an edge over China for producing complex machined and precision Castings as per international quality standards. The GOI also helps upgrade Foundry clusters. The clusters in Belgaum, Coimbatore and Howrah are undergoing modernization under the industrial infrastructure up gradation scheme. More of such clusters are likely to follow. Figure 3 SWOT ANALYSIS OF CASTING INDUSTRY Strengths  Cost competitiveness in terms of labour costs.  Well established manufacturing base  Matured Industry level  Proven product development and tooling capabilities.  Strong Engineering skills and robust IT domain knowledge.  Top Companies have world’s class manufacturing facilities.
  • 15. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 15 Weakness  Capacity constraints  Below top 10, rest are in small and medium sector, who need to scale up.  Engineering changes lead times is rather large in India.  High energy cost.  High cost of alloy Steels because Ni, Cr, Mo & V are imported and not locally available which makes the cost high.  Technology up gradation lacking in small sector because of high capital cost involved.  Inefficient economics of scale.  Logistics costs are high.  Environment compliance costs are high.  Perception about quality inadequate.  Infrastructure bottlenecks. Opportunities  The higher cost of environmental compliance in EU is leading to closure of Casting units across Europe and they are off-loading the components involving Casting to Asia.  Switch to value added products and niche products  Growth of Auto sector in India is giving big boost to Casting Industry to upgrade both capacities and quality.  Buying the closed units in EU and shifting plants to India and cater to their local customers by exports from India. Threats  Increasing cost of Environmental compliances.  Too high wastage in manufacturing, the raw material productivity is low.  High logistics cost.  Competition from China, Indonesia and Eastern Europe.
  • 16.
  • 17. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 17 COMPANY PROFILE Autokast was established in the year 1982 as a subsidiary of Steel Industrials Kerala Ltd. (SILK), a Govt. of Kerala Undertaking for the manufacture of Grey Iron and Spheroidal graphite Iron Castings. Autokast limited was started on with the aim of manufacturing all types of ferrous Casting unit under the Steel Industrials Kerala ltd (SILK). On May 21-1984 incorporated as separate subsidiary on SILK and renamed as Autokast Limited, which is located at S N Puram near Cherthala is a modern industrial Casting unit an ISO 9002: 2008 Company. The unit has an optimum capacity of 18000 tons per annum and covers an area of 21500 square meters. The plant comprises of two distinct production lines via, the conventional moulding line and the high pressure moulding line. The Company can manufacture ferrous Castings of all grades and sizes ranging from 5kg to 8000kg. The conventional moulding line is semi-automatic system in which large Casting is manufactured, whereas high pressure moulding line is fully automated system in which smaller Casting are manufactured in large quantities. The plant manufactures intricate high precision item of mass production like cylinder block and cylinder heads for the entire range of automotive engine. Produce all grades of Grey Iron Castings up to 8.5Mt single pc (18700 lbs.) and all grades of Ductile Iron Castings up to 7 MT single pc (15500 lbs.)and Steel Castings weighing up to 3MT single piece. Commonly produced grades are IS 1030 and WCB range casting. Induction melting furnace of 5MT and 3MT are exclusively Autokast has the following range of manufacturing facilities. 1. Air impulse type high pressure moulding line with a box size of 750 x 750 x 400/350 mm capable of producing 80 moulds per hour. The line is fully computer controlled and is supported by automatic core shooting machines employing different sand systems like cold box, shell core etc. Product range varies from 10 kg to 120 kg. 2. Conventional hand moulding line capable of manufacturing Castings ranging from 200kg. to 4000kg. Single piece weight. 3. Machine moulding facility having a mould box size of 790 x 790 x 400/400 mm and 1190 x 790 x 400/400 mm capable of manufacturing Castings ranging from 30kg. to 160kg. 4. Liquid metal is generated from 2 numbers of 6 MT Mains Frequency Induction Furnaces and 2 High Frequency Induction Furnace of 3MT and 5MT capacity. Pattern shop at AKL acts as a service shop for pattern equipment used in production. Autokast is fully equipped with state of the art testing facilities like 1. Well-equipped wet analysis laboratory. 2. Twenty six channel, Baird make vacuum spectrometer imported from U.S.A.
  • 18. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 18 3. Mechanical testing lab with 60T UTM, Brinnel hardness Tester, Rock well Hardness tester etc. 4. Metallographic facilities. 5. Ultrasonic testing facilities. 6. Magnetic particle testing facilities, and 7. Liquid penetrant tests. The Company‟s products at present cater to the needs of following segments of Indian and overseas Industries. 1. Automotive, 2. Tractor, 3. Butterfly Valve and Disc assembly, 4. Agricultural, 5. Wind mill energy and 6. General Engineering Industries SCOPE & FIELD OF APPLICATIONS This quality Management system covers manufacture, inspection, testing and supply of Steel, Grey Iron and nodular Iron Castings for automotive, tractor, butterfly valve wind mill energy and general Engineering Industries. Autokast manufactures Castings to customers‟ design only. Likewise, all products of Autokast can be verified by subsequent monitoring and testing. All activities of Autokast are covered under the quality Management system to continually improve the quality of its products as well as to ensure complete customer Satisfaction
  • 19. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 19 AUTOKAST LTD AT A GLANCE Registered Office & Works SN Puram,Cherthala;Alappuzha(dist.) Year of Establishment 1984 Products Grey Iron and Ductile Iron Production facilities High Pressure moulding .M/c Moulding &Hand Moulding Moulding process Green Sand &CO2 system Core Making CO2,No bake & Pepset Furnace 6MT Electric Induction *2 nos Testing Facilities Spectrometer, Ultrasonic, Magnetic Particle test, Dye penetrant Present Production 350MT/month Spare Capacity 150MT/month Total Land & Covered area 2,20,000 m2 & 60,700 m2 Table 1
  • 20. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 20 MISSION  Production in large volume and cost effectiveness in all segments  Produce technologically superior products  Achievement of customer delight through benchmarking global practice  Consistent production through harmonious industrial relations Strengthen supply chain Management VISION  To raise the Company as a leader of Casting Industries in India  The Company should be recognized and respected as a manufacture of the world class product serving customers by supplying quality Castings at right time
  • 21. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 21 LIST OF MAJOR PRODUCTS Sl.No Item Material Cast. Weight Application 1 Gear Box Hsg/Engine Housing Grey Iron 40 Kg to 130 Kg Tractor 2 HUB Ductile Iron 1000 Kg to 3300 Kg Wind Mill 3 Extender Ductile Iron 400 Kg to 600 Kg Wind Mill 4 Main Brg Hsg Ductile Iron 150 Kg to 1250 Kg Wind Mill 5 Yaw Top Ductile Iron 700 Kg to 1200 Kg Wind Mill 6 Claw Beam Ductile Iron 70 Kg to 110 Kg Wind Mill 7 Brake Disc Ductile Iron 50 Kg to 120 Kg Wind Mill 8 Gear Stay Ductile Iron 150 Kg Wind Mill 9 Bed & Frame Grey Iron 200 Kg to 3500 Kg Machine Tool 10 Valve Body Grey Iron +2% Ni 300 Kg to 5500 Kg Butterfly valve 11 Valve Disc / Vane Ductile Iron 250 Kg to 5750 Kg Butterfly valve 12 Sphere Grey Iron 300 Kg to 1200 Kg Ball Valve 13 Valve Body Grey Iron 700 Kg to 2200 Kg Gate Valve 14 Body & Head Grey Iron +2% Ni +0.75% Cr 100 Kg to 3300 Kg Vacuum Pump 15 Discharge Head Grey Iron 100 Kg to 160 Kg Vertical Pump 16 Dome Grey Iron + 1%Cr 40 Kg to 100 Kg Ash Handling 17 Ash Vessel Ductile Iron 170 Kg to 600 Kg Ash Handling Table 2
  • 22. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 22 ISO CERTIFICATION Autokast is an ISO 9002: 2008 certified Company. It has got the certification in 1990. ISO 9000 is a family of standards for quality Management systems. ISO 9000 is maintained by ISO, the International Organization for Standardization and is administrated by accreditation and certification bodies. The ISO 9002: 2008 agency in Autokast is Netherlands agency KEMA. The agency studies on various department and prepares a manual on each department. There is managing committee on ISO 9002: 2008 certification procedure. If there is any default or defect in the department, the agency prepares a detailed copy of changes to each department for modification. The Autokast which has export relationship with the foreign companies, the ISO certification enables a prompt Impact on the functioning procedure. The agency also does Internal Audit in the Company. The NVT is the Indian agency which does the certification procedures. It is granted by KEMA.
  • 23. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 23 QUALITY POLICY OF AUTOKAST EXCELLENCE IN THE FIELD BY ACHIEVING COMPLETE CUSTOMER SATISFACTION THROUGH CONTINUAL IMPROVEMENT AS WELL AS INVOLVEMENT OF EMPLOYEES AND, CONTRIBUTING ITS MITE TOWARDS NATION BUILDING THROUGH INCREASED EXPORT EARNINGS.
  • 24. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 24 BUSINESS PURPOSE SERVING CUSTOMERS BY SUPPLYING QUALITY CASTINGS AT RIGHT TIME QUALITY OBJECTIVES The Quality Policy is translated in terms of specific measurable objectives as given below: A. CUSTOMER SATISFACTION 1. Minimize customer complaints 2. Minimize rejection at customer ends. 3. Cutting down lead time for sample development. 4. Minimize delivery slippages B. CONTINUAL IMPROVEMENT IN OPERATIONS 1. Bring down shop floor rejections. 2. Minimize reworks. 3. Improvement in overall efficiency of critical equipment‟s. C. EMPLOYEE INVOLVEMENT Meetings conducted under various shop councils & Defect Analysis review Committee. D. IMPROVEMENT IN EXPORT TURNOVER Continual growth in export turnover. The quality policy, quality objectives and targets are reviewed annually for its continued suitability. Quality policy objectives shall be made known to all Employees by means of Bills at different locations in the plant and by personal communication by department heads. Every Employee of Autokast shall be committed to achieve this objective by strictly following the documented quality system.
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  • 26. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 26 MD AM-SUB CONTRACT &PROJECT CORDINAT OR AM-HRD&AMANAGER MKG&JMR MANAGER PRODUCTION MANAGERPPC &JPG MANAGERQC& ENGG MANAGER FINANCE MANAGE R MATRLS SKILLED WRKRS AO SKILLED WRKRS DMMKG AMMKG SKILLED AO AM INSP ECTI ON AM ENG G// PS MN GR R& D AE AM AO SKILLED ENGINEER AO- MAT AE- STOR ES SKILL ED AM- MECH MAINT DM-ELEC MAINT SKIL LED AE AE AM-HPLAM-FTLG AM-CONV MLDG AM-MLTG AEAE E E AEAE MN GR LAB AO
  • 27. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 27 RESPONSIBILITY AND AUTHORITY OF EXECUTIVES 1) MANAGING DIRECTOR RESPONSIBILITY  Overall control of the Company  Resource planning  Growth and development of the Company  Ultimate responsibility for product quality Management system  Chairing of the Company policy and achieving targets/objectives AUTHORITY  Total authority for all type of transaction of the Company subject to approval by the board of directors 2) PLANT MANAGER RESPONSIBILITY  Overall responsibility of Engineering quality control, production and maintenance contain cost of production in line with the budget; minimize non-conformity in products and process. Shop planning to achieve target, maintain shop floor discipline. AUTHORITY  Approve purchase indents of Raw Materials & spares  Initiate discipline proceeding against subordinates  Authorize to send subordinates staff on tour for official purpose. 3) HEAD MARKETING RESPONSIBILITY  Overall responsibility of marketing activities.  Contact review and market development.  Co-ordinate customer complaints with emphasis on preventive action. AUTHORITY  Contract finalization  Authorized to send subordinates staff on tour for official purpose.  To initiate disciplinary action against subordinates.
  • 28. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 28 4) HEAD, ENGINEEING &PATTERN SHOP RESPONSIBILITY  Assessment of Technical feasibility, Finalization of Casting, Drawing and Process methods, Sample Development, Technology advancement, customer service & control of technical data.  Ensure that Castings are developed within the targeted time period. AUTHORITY  Corrective and preventive action related to methods, manufacture /procurement of Patterns, Core boxes, Molding Flasks etc.  To send subordinates staff on official tour  To initiate disciplinary action against subordinates. 5) HEAD, QUALITY CONTROL RESPONSIBILITY  Inspection of incoming materials &process material like moulds, cores &liquid metal.  Calibration of Testing and Laboratory Instruments AUTHORITY  Final authority to accept/reject incoming and process materials  Authorized to send subordinates staff on tour for official purpose  Authorized to stop /restart production /process in line with non-conformity ,of process parameters as stipulated in process sheet  To issues materials Test Certificate for finished products  To initial disciplinary action against subordinates. 6) HEAD, INSPECTION RESPONSIBILITY  Responsible for final inspection of all the finished product of the Company  Responsible for inspection of pattern equipment’s  Dispatch clearance  Calibration of measuring and other inspiration Instrument and Gauges AUTHORITY  Final authority to accept/reject all finished products with respect to Dimensional and visual aspects  Authorized to send subordinate staff on tour for official purpose  To initiate disciplinary action against subordinates
  • 29. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 29 7) HEAD, PURCHASE RESPONSIBILITY  Supplier evaluation and all purchase activities  Inventory Management of incoming materials, compliance of purchase and inventory procedures AUTHORITY  Realize of purchase order up to value of Rs. Ten lakhs.  Authorized to send subordinate staff on tour for official purpose  To initiate disciplinary action against subordinates 8) HEAD, SUB CONTRACT AND PROJECTS RESPONSIBILITY  All Subcontracting activities including development of new subcontractors and matters related to projects, Maintenance of building ,work space and utilities AUTHORITY  Release of Work Orders, Suppliers evaluation and approval of bill of subcontractors  Authorized to send Employees working under him on tour for official purpose  To initiate disciplinary action against subordinates 9) HEAD, HUMAN RESOURCE DEVELOPMENT & ADMINISTRATION RESPONSIBILITY  Wage administration and statutory compliance under Labor Law.  Identifying Training needs and Organizing training programs  General administration and Employee welfare.  Adopt measures to seek Employee involvement in Company‘s development activities  Up keeping of work environment and pressure vessels & lifting tackles AUTHORITY  Approve payments to Employees ,Security ,Canteen, Transport etc. as per norms  Sales of usufructs  Authorized to send subordinate staff on tour for official purpose  To initiate disciplinary action against erring subordinates
  • 30. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 30 10) HEAD, FINANCE RESPONSIBILITY  Overall charge of the department  Preparation of Budget annually and enforcing financial discipline to work within the Budget  Costing of activities and suggesting cost control measures AUTHORITY  To represent Autokast in financial transaction with financial institution and other agencies as authorized by Managing Director  To recommend necessary Training needs to Subordinates staff  To initiate necessary discipline action against erring subordinate staff 11) HEAD, PRODUCTION PLANNING & CONTROL RESPONSIBILITY  Over all charges of the department  Plan production and dispatch based on Work Order from Marketing Department  Follow-up of activities to achieve the target  Appraise the top Management about the progress of activities on a daily basis AUTHORITY  To recommend necessary training need to subordinates staff  To initiate necessary disciplinary action against erring subordinate staff. 12) HEAD, MELTING RESPONSIBILITY  Overall charge of Melting Production ,Manpower control ,and co-ordinates with other departments  Cost control and productivity improvement  Monitoring and implementing adequate safety measures for mean and machinery AUTHORITY  To recommend necessary Training needs to Subordinate staff  To initiate necessary disciplinary action against erring subordinate staff
  • 31. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 31 13) HEAD, CONVENTIONAL MOULDING (HAND MOULDING) RESPONSIBLITY  Over all charge of production ,manpower ,and co-ordination with other departments  Cost control and productivity improvement  Monitoring and implementing adequate safety measures for men and machinery AUTHORITY  To recommend necessary training needs to subordinates staff  To initiate necessary disciplinary action against erring subordinates. 14) HEAD, HP LINE (AIR IMPULSE) RESPONSIBILITY  Over all charge of Production, Manpower and co-ordination with other departments  Cost control and Productivity improvement  Monitoring and implementing adequate safety measures for mean and machinery AUTHORITY  To recommend necessary training needs to subordinates staff  To initiate necessary disciplinary action against erring subordinate staff 15) HEAD, FETTLING RESPONSIBILITY  Over all charge of Production ,finished goods store, manpower ,and co-ordination with other department  Cost control and productivity improvement  Monitoring and implementing adequate measures for mean and machinery AUTHORITY  To recommend necessary training needs to subordinates staff  To initiate necessary disciplinary action against erring subordinates staff
  • 32. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 32 16) HEAD, MAINTENANCE (MECHANICAL & ELECTRICAL) RESPONSIBILITY  Overall charge of technical and administrative function of electrical and mechanical departments  Making plant and machinery available for maximum productivity by bringing down breakdown and scheduling preventive maintenance suitably  Liaison with outside agencies like KSEB Electrical Inspectorate and Factory Inspectorate  Introducing cost reduction where ever possible and implementing value Engineering AUTHORITY  To recommend necessary training needs to subordinates staff  To initiate necessary disciplinary action against erring subordinates staff
  • 33. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 33 PRODUCT REALIZATION PROCESS
  • 34. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 34 Steps 1. At first the customer places an enquiry with the Marketing Department. 2. The drawings and specifications by the customer are transferred to the Engineering department by the Marketing Department asking for the feasibility report. 3. Engineering department prepares the feasibility report based on the factors such as weight order quantity, complications, materials used and other technical details. 4. The report is send back to the Marketing Department. 5. The Marketing Department fixes the rate (by putting up the proposal to the pricing committee which includes the representatives from the marketing, finance, Engineering, Production Departments and the managing director) and inform to the party (customer). 6. Negotiation with the party is made if required. 7. Customer places the order. 8. The Marketing Department issues the work order to other departments. 9. If the model (pattern) is not provided by the customer, then it should be produced first. The design is made by the Engineering department as per the drawings and specifications provided by the customer and the pattern shop produces the pattern. 10. The required Raw Materials for the product are procured (mostly from suppliers). 11. The production planning and control department issues the production schedule. 12. Manufacturing process is established which includes mould making, melting and coring. 13. Quality inspection is held at each stage of production by the quality control department. 14. Maintenance and calibration of machines are done at proper intervals. 15. After the manufacturing process, the Casting is brought to the Fettling Department. Finishing of the product is ensured here and the excess metal on the Castings are removed. 16. The final product is inspected and tested for the quality and is send back to the customer. 17. As per the customer‟s feedback, further improvement measures are taken by the Company.
  • 35. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 35 PRODUCTION Autokast is making Casting to Customers Design and production is controlled in two stages, first stage being developing Sample Casting followed by regular production after getting approval from the customer. Sample Casting All the activities of taking out samples shall be controlled by the Development team under leadership of Head, Eng. until it is cleared for regular production. In process inspection shall monitor each activity and record observations. Based on work order from marketing dept. Prepare the process sheet and draft quality plan along with method drawing and issue copies of quality plan/process sheet to concerned depts., like Moulding, Melting, Quality Control/Inspection. Study the quality plan/process sheet of the item and arrange required facilities/materials at their respective shop. Based on production plan from PPC, draw patterns and start moulding process according to the guidelines provided in the process sheet/quality plan and documented work instruction of Moulding dept. After completion of moulding process, close the moulds (Mould Assembling). Cast the mould with specified molten metal under specified pouring conditions. Knock out the Casting after specified holding time. Decor the Castings and transfer them to Fettling shop. Fettle the Castings. Inspect the Casting visually and record the status. Castings cleared after the visual inspection shall be marked for dimensional conformance. Test mechanical and metallurgical properties of representative test coupons and record the status. When all the characteristics are conforming to customer requirements, issue despatch clearance for the Castings. Despatch the Castings and seek Customer feedback. Forward the feedback from the customer to Head, Engineering. Evaluate observations by customer and observations by the development team during the course of development and update quality plan/process card.
  • 36. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 36 Issue final quality plan and clearance for regular production. Regular production. After getting for regular production from Engg,dept., plan regular production and issue copies o planning sheet to concerned departments. Ensure availability of update (latest revision) of process sheet/quality plan at respective departments. During regular production, total responsibility of clearing the Casting for despatch shall be with Heads of inspection and QC, visual, dimensional and NDT with the former and metallurgical and mechanical with the latter. STEPS INVOLVED IN MAKING A CASTING 1) Make the Pattern out of Wood or Metal. 2) In case of Sand Casting, select, test and prepare the necessary sand mixtures for mould and Core Making 3) With the help of patterns prepare the Mould and necessary Cores. A Mould is a container having a cavity of the shape to be cast. A Core is a body which is employed to produce a cavity in the Casting 4) Melt the Metal to be cast. 5) Pour the molten metal into the mould and remove the Casting from the mould after the metal solidifies. 6) Clean and finish the Casting. 7) Test and Inspect the Casting. 8) Remove the defects, if any. 9) Relieve the Casting stresses by Heat Treatment 10) Again inspect the Casting 11) The Casting is ready for shipping. ADVANTAGES OF METAL CASTING  Casting is one of the most versatile manufacturing processes.  Casting provides the greatest freedom of design in terms shape, size and the product quantity  Casting imparts uniform directional properties and better vibration damping capacity to the cast parts.  Casting produces machine parts  Shapes difficult and uneconomic to obtain otherwise may be achieved through Casting process.  A product may be cast as one piece, thereby eliminating the need of metal jointing processes.  Very heavy and bulky parts like those of power plants and Mill Housings, which are otherwise difficult to get fabricated may be cast.  Metals difficult to be shaped by other manufacturing processes may be cast.
  • 37. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 37  Castings can be designed for equal distribution of loads and for minimum stress concentration in order to achieve more strength and increased service life.  Casting process can be mechanized and usefully employed for mass production of components. APPLICATIONS OF METAL CASTING The growing demand of high precision Castings and of intricate designs at lower costs has helped considerably in the development of Foundry Industry. Hardly there is any product, which does not have one or more Casting components. A few applications of Founding or Casting are mentioned below: 1. Transportation vehicles: Cast metal parts account for more than 90% of an automobile engine and for more than 50% of the total weight of a tractor. 2. Machine tool structures. 3. Turbine vanes. 4. Power generators. 5. Mill housings. 6. Railway crossings. 7. Super-charger Casting 8. Pump filter and valve. 9. Paper mill stock breaker parts. 10. Aircraft Jet engine blades. 11. Agricultural implements. 12. Sanitary fittings. 13. Communication Construction and Atomic Energy Applications. 14. Wind mills. PRODUCT PROFILE Autokast Ltd is a Foundry unit producing Iron Castings for a variety of Industries. The Iron Castings are made of Cast Iron. Cast Iron is a general term that describes Iron, carbon, silicon alloys which are produced by pouring the molten metal into sand / metal moulds. Cast Iron is brittle and grey in colour. The carbon content in Cast Iron is more than that in Steel which makes it less malleable. By varying the silicon and carbon content at alloy, several types of core Iron can be produced each with different properties and uses. The major product lines of Autokast are: 1. Auto motives Castings Cylinder heads, Cylinder blocks, Drum Housing etc. 2. Machine Castings Machine tool Casting 3. Pump Castings Vacuum and Slurry pump Casting
  • 38. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 38 4. Castings for Pressure Tight Application Central valves, pressure vessel Castings etc. 5. Windmill Castings Bearing Housings, Hub, Extender, etc. Autokast produces Castings in Grey Iron and spheroidal graphic Iron or nodular Cast Iron. Grey Cast Iron Grey Iron can be readily cast into desired shapes by pouring into moulds. So it is the most commonly used type of Cast Iron for the manufacture of Castings. The other distinguishable characteristics of Grey Iron are:  Lowest melting point of all ferrous alloys.  Carbon in Grey Iron is found in the form of graphite flakes.  Low cost combined with hardness and rigidity.  High compressive strength.  High resistance to whether etc Chemical composition Grey Iron Carbon % Silicon % Manganese % Sulpher % Phosphorous % 2.5 – 3.75 1.0 – 2.5 0.4 – 1.0 0.06 - 0.12 0.1 – 1.0 Table 3 Applications  Machine tool structures.  Gas or water pipes for underground purposes.  Cylinder blocks and heads for internal combustion engines etc. Spheroidal Graphite Iron Spheroidal Graphite Iron or Nodular Cast Iron is a higher grade of Iron, because unlike structures in Grey Iron, the graphite in Spheroidal Graphite (SG) Iron is precipitated as Spheroids. This is attained by adding some spheriodising agents, which changes the solidification characteristics and account for notarization. Chemical composition S G Iron Carbon % Silicon % Manganese % Sulpher % Phosphorous % 3.2 – 4.2 1.1 – 3.5 0.3 – 0.8 0.2 0.08 Table 4
  • 39. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 39 CASTING FERROUS CASTINGS SG/DUCTILE IRON GREY IRON Similar to Steel Brittle Graphite in Spheroidal shape Easy to handle Low Manganese Rust free Hardness Costly Take more finishing time Rust free More elastic
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  • 41. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 41 DEPARTMENTS Autokast limited has the following departments  HR Department  Marketing Department  Production Planning & Control Department  Engineering & Pattern Shop Department  Production Department  Quality Control & Inspection Department  Mechanical Maintenance Department  Electrical Maintenance Department  Materials Department  Subcontract Department  Finance Department  R&D Department
  • 42. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 42 HR DEPARTMENT Human Resources is exactly it says: resources for humans – within the workplace! Its main objective is to meet the Organizational needs of the Company it represents and the needs of the people hired by that Company. In short, it is the hub of the Organization serving as a liaison between all concerned. To ensure its success, a Company must establish a hierarchal reporting system. The funnel of responsibility is critical to the efficiency of a smoothly operating business entity in which there is a clearly defined understanding of who is responsible for what. They provide consultation to a Company's Management team to identify what the Company's core business and culture is about, and proceeds to plan and map the Company's Organizational infrastructure to support those needs. Personnel Management is the specialized branch of Management that deals with people who are not mere Machines or Commodities or Costs but who are as human as any human beings are, and who constitute the principal asset of the firm. Personnel Management is the part of total Management of the Organization, which specifically deals with the human resources in respect of their 1. Procurement 2. Development 3. Their motivation towards the attainment of the Organizational objectives The success of modern Organization always depends on the contribution made by the Employees. An Organization tends to be successful when Employees are satisfied and productive inspection performing their tasks. The active function of labour factor is needed.HR and Administration department is an inevitable part of every Organization and in this Organization also it is performing a number of functions like recruitment, selection, training, placement and development of staff, job description, job evaluation, merit rating etc. It devices methods of wage payment, promotions, transfers, provides welfare measures, enters into contract for employment, handles labour problems and disputes, keep employment records and so on. HRD and administration department is a specialized branch which deals with the people. This department services to the use of human resources in an effective manner so as to transform them for realizing the objectives of the Organization. In Autokast HRD&A is a specialized branch of Management, which deals with the people. This department strives to use human resources in an effective manner so as to transform them for realizing the objectives of the Organization. It aims at relating people at work with the activities necessary to achieve goals.
  • 43. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 43 MANPOWER IN AUTOKAST CATEGORY NO OF EMPLOYEES Manager 8 Deputy Manager 4 Assistant Manager 11 Engineer 6 Assistant Engineer 21 Assistant Officer 11 Permanent Workers 160 Table 5 TIME OFFICE The main functions of time office are attendance keeping and payroll preparation. It comes under the control of personnel department. Employees can take 12 casual leave and 15 medical leave per year. 13 holydays are allowed for the Company, including 9 Festivals and 4 National holydays. PUNCHING SYSTEM Attendance and payroll are maintained using the punching card system. The latest computer technology (Biometric Technology) is used in punching system. The worker has to insert the card into the system when he enters as well as leaves the Company. If the worker omits inspection punching the card, he will not be given the wages for that day. The details of the worker‟s attendance are entered into the computer everyday with the help of punching system. An electronic worksheet is used for this purpose. Wages are given to the workers based on the verification of the punching system as well as the worksheet. The punching card system gives only the attendance of the workers. It gives the information whether a worker was present or absent during a particular day but not whether he was working or not. Therefore the time office maintains individual attendance register for each section of the Production Department. IN Autokast there are 4 shifts which are classified A, B, C and general shift. The duration is 8 hours for each shift. The timings are:
  • 44. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 44 Shift Time General Shift 9.00am to 5.00 pm A Shift 6.00am to 2.00pm B Shift 2.00pm to 10.00pm C Shift 10.00pm to 6.00am Table 6 RECRUITMENT Recruitment Process It is an important function of Human Resource and Administration department. Recruitment is done by the corporate personal and administration department as per the delegation of powers issued from time to time. All the permanent Employees are recruited during the starting stage of Company. Recently Autokast does not make any permanent recruitment. Now they make only temporary selections. Also apprentices are there to meet the manpower. Source of Recruitment  Through Employment Exchange as per the provisions of the Employment Exchange (compulsory notification of vacancies).  Through Public Service Commission in respect of posts exclusively reserved for P.S.C  Promotion of existing Employees from the lower scale who meet the prescribed standard.  Direct recruitment from outside candidate, who meet the prescribed standards.  From ITI‟s and RI (Related Instruction) Centre. Mode of Recruitment 1. Workmen – Vacancies are notified in the Employment Exchanges. A part of the vacancies are filled up that way and the other, which is earmarked for those who are promoted are filled through promotions. 2. Executives and Managerial Staff - Vacancies are notified in Employment Exchanges, newspapers and Professional Employment Exchanges. 3. Trainees and apprentices – Recruitment is done under the provisions of the Apprentice Act 1961. Recruitment Procedure Advertisement Registration & Screening Interview Appointment Manpower budgets
  • 45. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 45 Man power budgets : Information about the vacancies Selection Committee : Representatives from vacancies listed department, from the Human Resource and Administration department and representatives from other departments. The procedure also includes, Advertisement for open selection Registration and screening Selection, Interview/wait-listing Candidate are called for interview Appointment : It include medical check-up, verification report, signing of appointment order after approved by appointing authority, joining time, joining formalities, deputation. TRAINING Training is also essential for members of staff who have been working for the Organization for a long time. This is especially so in the wake of technological advancements, legal changes and changes in service delivery. It is important for an Organization to keep up with Industry trends otherwise it faces the danger of becoming obsolete; especially in the background of increasing competition. In Autokast, Kerala State Productivity Council (KSPC) and National Institute of Personal Management (NIPM) are usually providing training to Employees. It helps to improve work culture. Training Process Determining competence. Collect data on available knowledge and skill and prepare a list of all Employees showing details about the qualification, experience and training undergone. Issue training identification formats to section heads along with Employee data every year. Identify training needs of Employees working under them, file the formats and forward the same to Head, HRD. Preparation of training calendar indicating course details and nominations. Arrange training programmes. Arrange training to make each Employee aware of the relevance and importance of his activities and how they contribute to the achievement of Company‟s quality objectives. Arrange specific training for identified personals as recommended by the HOD‟s. Maintenance of training documents. Details of all training programmes shall be documented and maintained properly. Effectiveness of the training shall be evaluated by concerned HOD within a period of six months after completion of training and report sent to Head, HRD
  • 46. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 46 PERFORMANCE APPRAISAL Performance appraisal is another important function of Human Resource and Administration Department. It refers to all the formal procedures used in working Organization to evaluate the personalities, contributions and potential of group members. It is done yearly. Done by Department Heads. Purposes of Appraisal • It can serve as a basis for job change/promotion • It serves as a guide for formulating a suitable training & development programme • It serves as a feedback to the Employee • It serves as an important incentive to all the Employees • It tends to make the Supervisors and Executives more observant of their subordinates • It helps to determine the rewards and privileges • It can be helpful in selection and placement of workers • Performance appraisal records of Employees help the Management to give up sole reliance upon personal knowledge Evaluation Process Based on 1) Assessment of job - Job knowledge - Planning, organizing, control and coordinating - Work output - Cost consciousness - Attitude to work - Knowledge of current trends & developments pertaining to his general fields of work 2) Professional & managerial abilities - Ability to inspire, motivate & develop subordinates - Decision making & judgments - Initiative - Communication skill - Theoretical & analytical ability - Leadership & team building - Sense of responsibility - Dependability -
  • 47. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 47 3) Personal qualities - Integrity - Attitude towards Organization - Discipline - Cooperation & team spirit - Capacity to withstand stress - Interpersonal relationship Rating EXCELLEN T OUTSTANDIN G GOO D SATISFACTO RY UNSATISFACTO RY PAR T 1 4 3 2 1 <1 PAR T 2 12 10 8.5 7 <6 PAR T 3 5 4 3 2 <2 Table 7 WELFARE ACTIVITIES Autokast Employee‟s welfare fund is formulated to carry out various welfare activities. The major supports provided by the fund includes 1. If a member of the welfare fund dies while in service, An amount of Rs 2500 would be given to his/her dependents for cremation purpose 2. Medical grant of Rs 5000 is provided to the members while in service 3. Voluntary retirement schemes 4. Retirement benefits 5. Death benefit/family benefit schemes 6. SSLC awards for the children of Employees 7. Loan facility for Employees
  • 48. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 48 Recreation club Autokast recreation club started its activities on 4th of October 1986 with the purpose of enhancing and encouraging various co-curricular activities of the Employees and their family members. Encourage Art, Cultural and Sports activities of Employee, assistance may be given by the Company for the formation of Recreation Club in the corporate office and different units/subsidiary units. The following facilities may be given, provided it is in conformity with the approved by –law Accommodation at normal rent one-time –amount determined by the Company subscription – will be deducted from monthly salary as prepayment of wages act. Assistance of an internal auditor as and when required Chairman and one member –will be nominated by the Company to the recreation club Facilities and programs conducted Library SSLC cash award Sports Indoor games Veterans meet Painting competition Cultural meet Health programs INDUSTRIAL RELATION The Industrial Relation Policy of Autokast is to introduce and establish systems and procedures which would ensure a healthy Employee-Management relation so as to achieve maximum productivity, Employee satisfaction and development. Participation The Management of Autokast believes that active association of all Employees in various aspects of productive operations and welfare activities in a true participative spirit is essential for the creation of a climate of involvement and commitment which alone can motivate them to contribute their best for the sustained growth and prosperity of the Organization. The grievances/demands raised by the recognize Trade Unions which command a minimum strength of 30% of the total strength of workmen in a unit. The representatives of all recognized trade unions are given equal status during bilateral discussions.
  • 49. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 49 GRIEVANCE HANDLING In Autokast there were no much big grievances so far. It is the policy of the Company to settle grievances at the lowest possible level so that grievances are not prolonged. The object of the grievance procedure is to provide the workmen of Autokast with an easy and readily accessible procedure and machinery for the ventilation and prompt redressal of their day to day grievances. Current Issue Long Term Agreement (LTA) not performed for so many years. So that Salary revision is not done so far. Since the Workers in the Company have variable DA, their pay revision is not done due to the non revisal of LTA. Scope Complaints affecting an individual workman in respect of the following matters will constitute grievances and will be subject to the procedure.  Payment of wages  Regarding wage or payment (other than monthly salary)  Leave  Inter-department transfer  Promotion  Seniority  Work assignment  Working condition Procedure The procedure to be followed by an aggrieved work man for presentation of the grievances and procedure for actual settlement is detailed below a. Informal Redressal The aggrieved Employee shall first present his grievance orally to his section head within 24 hours of the instance of such grievance and the section head will inquire into the matter and give his answer orally within 48 hours .a record of such oral grievance will be maintained by the section head /Supervisor b. Formal Redressal Stage 1: If the matter is not settled through informal redressed and if the Employee finds necessary he can obtain from the section head/Supervisor a copy of the grievance form 1. This should be done within one week of the date on which the facts on the basis of which the complaint has arisen became known to the worker, except that in the case of promotion in question will be allowed The section head or Supervisor or his equivalent officer will make the necessary and inform the workers in the prescribed form with his remarks in the space provided for the purpose
  • 50. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 50 within one week. If necessary the worker can discuss his case further with the Supervisor in the light of Supervisor’s remarks. Stage2: If the worker is not satisfied with the reply at stage 1, obtained from shop-in –charge or Supervisor or his equivalent as the case may be, he should obtain a copy of grievance form 2 and enter in the form his reason for re-consideration of his case and submit the form to his department head, within 3 working days of the receipt of the reply at stage 1 and obtain an acknowledgement receipt. The department head will discuss the issue with the Supervisor and with the Employee and give the reply to the worker with his remarks within 7 days .if not the workman will present his grievance to the next authority, grievance committee. Stage 3: If the worker is not satisfied with the reply from the department head, he may appeal to the Chairman of the grievance committee in grievance form 3 within 3 days of the receipt of the reply at stage 2 The grievance committee consists of the following: 1) an officer specifically nominated by the unit head } Chairman 2) Department head or section head } Member 3) One trade union representative } Member 4) Representative of the personal department } Secretary The above committee will meet at least once in every for on sight, to consider the grievance if any. Unanimous decision will be communicated within 20 days of receipt of grievance by the committee. In case of difference, the matter will be immediately referred to the unit head .cases where the grievance committee feels that the issue involved is of general importance on which the higher Management alone can take a decision, will be referred to the chairman & managing director. The chairman & managing director’s decision on the matter will be final and will be communicated to the Employees expeditiously, after which the union will be free to take up the issue as industrial dispute with the legal machinery if deemed In the above, grievance committee, 3 members will constitute the quorum .the Management and union can nominate one alternative member each to participate in the meeting, in the absence of any of their representative. WAGE SYSTEM The wage system used in Autokast is the time wage system. Punch card method is used for time keeping. The net wages and salary distributed comes to about 22.25 lakhs, out of which about 13.13 lakhs as wages provided for the workmen and the rest 9.11 lakhs is provided for executives. For overtime work there is no additional benefits, single salary system is followed for workers.
  • 51. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 51 DISCIPLINARY ACTIONS If a workman is found guilty any of the following punishments may be awarded to him 1) Censure or warning 2) Withholding of increments, with or without cumulative effect or postponing of any increment to any future date with cumulative effect or without cumulative effect. 3) Recovery from his pay of the whole or part of any pecuniary loss caused to the Company by such misconduct, subject to the provision of payment of wages act. 4) Imposition of fine, up to 2% of his salary in a month. 5) Reversion or demotion to a lower grade or post or time scale or to a lower stage in the same time scale either permanently or for a specified duration. 6) Suspension for a period not exceeding 4 days at a time without pay or salary or on such reduced pay /salary as maybe ordered. 7) Barring of promotion 8) Discharge from service, compensation or notice 9) Dismissal
  • 52. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 52 DEPARTMENTAL CHART MARKETING DEPARTMENT The Marketing Department must act as a guide and lead the Company's other departments in developing, producing, fulfilling, and servicing products or services for their customers. Communication is vital. The Marketing Department typically has a better understanding of the market and customer needs, but should not act independently of product development or customer service. Marketing should be involved, and there should be a meeting of the minds, whenever discussions are held regarding new product development or any customer-related function of the Company. Industrial marketing is a set of activities directed towards facilitating and expediting exchanges, involving industrial products and customers in industrial markets. Industrial markets consist of commercial manufacturers, government and other institutions. Industrial marketing is different from marketing of consumer goods. But the ultimate aim remains the same exchange of goods for the satisfaction of human needs and wants. Marketing in Autokast is not much aggressive as in FMCG Industries and Autokast uses only their website as an advertising medium. Autokast is a jobbing Foundry i.e. they produce MANAGING DIRECTOR ASSISTANT MANAGER (HR) ASSISTANT OFFICER (HR) SKILLED TIME OPERATOR UNSKILLED
  • 53. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 53 items according to customer demands. Hence they don‟t have a fixed product mix. It will vary with variations in customer demands. The duty of Marketing Department shrinks to new customer identification and their evaluation. The new customers will be the firms in the same Industry. When those firms are unable to meet their production requirements they will turn to other firms in the same Industry. In such situations the Marketing Department has a crucial role to attract those firms into Autokast. Marketing Department receives enquiry from the customers. The enquiries including the drawings, specifications and other details are send to the Engineering department. After receiving the feasibility study report by the Engineering department, the Marketing Department goes for costing and pricing activities. The pricing committee consists of representatives from marketing, Engineering and Finance Department and the managing Director. Quotation is given after the price fixation and negotiation is made if required by the Marketing Department. On receiving the order from the customer issues purchase order for Raw Materials and work order to production planning and control ,Engineering ,production and quality control departments. After the production process, the Marketing Department Despatches the product to the customer. MARKETING PROCESS Determination of requirements. Receipt of enquiry and entering the details in the register. Preliminary study of the enquiry for adequacy of information and obtaining further details from customer, if required. Forwarding the enquiry to Head – Engineering for assessing product requirements, including any implied, statutory and regular requirements related to the product and for feasibility study as well as cost/pattern cost estimation. Review of requirements. Feasibility study involving chief of Production. The study group shall make sure that, 1) Product requirements are defined 2) Requirements differing from those previously expressed are resolved 3) The Organization has the ability to meet the defined requirements Return the Feasibility Report and Cost Estimation to Marketing. Preparation of draft quotation and obtaining approval from MD. Negotiation with the customer, obtaining Purchase Order/Contract, verification of the same with proposal after resolving differences if any with the customer. Issue of Work Order with relevant documents. Negotiation with the customer and finalization of changes in the contract if any, found necessary during course of development / regular production.
  • 54. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 54 Getting those amendments formally confirmed by the customer and communicating the same to concerned departments. In case of repeat order, issue of work order shall be after ascertaining capability of meeting delivery requirements. MARKETING STRATEGIES Making highly sophisticated and modern facilities for inspection and quality control, the firm has no difficulties in challenges of job. In this field it has dependable supplies of quality Castings and economic supplies. The Company follows the guidance such as production of high quality Castings, provided inspection to ensure uniform and rigid quality control, the firm represents automated breakthrough in Indian Foundry Industry and grading to better international standards. MARKETING MIX The primary duty of Marketing Department is to take decision of product mix, price mix, and promotion mix together known as marketing mix. The Marketing Department of Autokast aims at improved customer satisfaction through reduced rejection and complaints at customer ends. Thus they ultimately aim at improvement in business which can be achieved through large export volume as well as through the domestic customers. PRODUCT MIX The important features of industrial goods that should be kept in mind while deciding the product mix is that they have a derived demand, limited number of buyers, greater scale of purchase, complex nature and that the buyers are fully aware of the product they buy. Autokast Ltd is equipped to produce a variety of Castings, from the smallest to the largest. Since the firm had been incurring losses for some time now, the most important consideration is the proper product selection, so as to reduce the losses. The main factors taken into consideration while selecting a product are: 1. Price – Price is the single most important factor considered while selecting a product 2. Quantity and Consistency of Orders – While bulk orders are received, due to economy of mass production, the costs can be reduced. So for bulk orders, the primary consideration is the price negotiation. In the case of some products, where customer is well known and has a well-established business, the Company can expect repeated orders. In such cases too, prices are often negotiated. 3. Simplicity of the Manufacturing Process – To generalize, the more complex the product becomes, the more will be the cost of production. So Castings, which has complex structures like cylinder blocks have higher cast of production, and simpler Castings like pipe Castings, which are less complex, have less cost of production. Giving due consideration to the above factor the Company has almost abandoned the production of thin walled Castings like cylinder blocks for automobiles.
  • 55. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 55 PRICE MIX Price is the exchange value placed on the product. It is a very important factor, which affects the profitability of the firm, because it relates directly to the generation of total revenue. There are various methods of pricing that could be followed. In Autokast the pricing method followed is the “cost plus pricing” where a fixed percentage of profit is added to the cost of production to arrive at the price. In this method, the total cost is considered. It consist of manufacturing cost, administration overheads and selling and distribution overheads. To this a fixed percentage of profit is added, and thus the price is fixed. Usually provisions are provided for all losses, like melting losses, Casting losses and rejections. PLACE MIX It refers to the distribution channel adopted to place the products before the customer. Though there are a variety of distribution channels, industrial goods usually have a shorter distribution channel. In Autokast about 95% of the distribution is done through the direct channels. Direct channel represent a distribution channel in which the Company directly distributes the products to the customers. This method can be conveniently followed because the customers are less in number, and can be given individual attention. The rest 5% is done through agencies for exports, a Madras agency sources orders for Autokast. Besides that, an agency in Pune, Sividha enterprises, performs liaison functions in West India. Jabalpur agency is one another agency in North India for Autokast. PROMOTION MIX Promotion is the process of communicating with customers. For marketing purposes, communication of products and services contributes to the persuasion process to encourage consumers to avail themselves of whatever offer.Autokast mainly done their promotional activities through various exhibitions conducted at International Foundry Bangalore. LOCATING CUSTOMERS Autokast does not advertise in any medias. Though it has an attractive brochure, designed by the leading advertising agency ULKA, with the attractive caption, “If you can design it, we can cast it”, it has never been used for commercial advertising. Since the firm does not advertise, sourcing of customers is a major duty of the Marketing Department in Autokast. Usually it is done  From Experience – Almost all the managers and executives in Autokast are those who have had previous experience in foundries. So from their prior experience, they are in a position to know the people who need particular Castings.  Organizations like EEPC – Engineering Export Promotion Council (EEPC) is a government Organization promoting our Engineering goods abroad. They conduct trade fairs and provide brochures, which contain specifications of Industries and the facilities available. Autokast is included in EEPC’s brochure.  Media – Customers, who are in need of the Castings, usually advertise their enquires, tenders etc in newspapers. EXECUTION OF THE CONTRACTS Mere sourcing of the customers is not enough. In fact, it is the first step from which the lengthy process of gathering and execution of contracts for production and supply of Castings. Normally execution of contracts proceeds through different steps.
  • 56. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 56 They are: Step 1 – Sourcing the Customers Step 2 – Contacting the Prospective Customers Step 3 – Receiving Enquiries from Interested Customers Step 4 – Prospects of Feasibility of Production is Enquired Step 5 – If found Feasible, Quotations are Sent Step 6 – Customer Reaction Step 7 – Receiving Purchase Order Step 8 – Preparing Internal Work Order Step 9 – Follow up of the Production Step 10 – Shipment Step 11 – Collection of money and further extension orders COMPLAINT HANDLING Register all complaints from customers allotting a number with date and time of receipt and acknowledge within a day. Study the complaint to see whether the complaint is of technical or commercial nature. If the nature of complaint is not clear, seek clarification. Complaints of commercial nature shall be settled within a period of 72 hrs from the receipt of complaint in consultation with the MD/Financial Chief. Complaints of technical nature shall be directed to PM with a copy to MRs Office within 24 hrs of receipt. Plant Manager shall analysis the nature of complaint and direct it to concerned HOD like,  Complaints of dimensional deviations to Engineering and Inspection.  Due to failure of material property to QC.  Improper inspection procedure, to inspection.  Delay in delivery and damages occurred during transportation handling, packing etc to Dispatch section (PPC/Marketing). Department Heads shall analysis the problem and report their observations like  Cause of the non-conformity  Suggested disposition date  Corrective action plan  Preventive action plan, all with a target date PM shall approve the action plan proposed by concerned HOD and return it to Marketing through MR‟s Office.
  • 57. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 57 Inform the customer about the proposed disposition and due date. Interact with the customer to assure that the complaint has been addressed and disposed of to their satisfaction and close the complaint. Update the Complaint Log at stages of progress and send a monthly summary to MR for presenting in the MRMCorrective action Report shall be discussed along with customer complaints in MRM as one of its main agenda. Measuring Customer satisfaction Measure the level of customer satisfaction by getting AKL questionnaire filled by the customer periodically and calculating an index of customer satisfaction. An alternate method to calculate customer satisfaction, taking mainly two aspects like customer complaints and customer returns shall be For each percentage of customer complaints (A) one negative point For each percentage of customer rejection quantity (B) two negative point Then,Customer satisfaction Index = 100 - (A+B) To work out this, with the presently set target of customer complaint and customer returns. Number of complaints, 7. Then 7*1=7 negative points (A) Customer return per cent, 4% Then 4*2=8 negative points (B) Adding A+B its is 15 negative points Then customer satisfaction index minimum=100 – (A – B) = 100 – 15 = 85 MARKET SHARE OF MAJOR PRODUCTS Figure 4 20.31 18.02 9.499.46 7.06 4.94 5.48 5.82 2.85 7.67 7.18 Shares Macawber Beekay Kakati Fouress Kamco;Athani Triveni Gears L & T LTM Kamco;klsy Koso
  • 58. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 58 MAJOR CUSTOMERS Sl No CUSTOMER SECTOR 1 Kamco Power tiller 2 Macawbwer bekay Ash handling 3 United Conveyor Corporation Ash handling 4 Pioneer Wincon Wind mill 5 Reliance Energy Wind mill 6 Fourees Engg Valve 7 Flowserve Valve 8 Kakati Karshak Vacuum pump 9 L&T Units Heavy Engineering 10 Ace Designers Machine tool 11 Triveni Engineering Heavy duty gear box 12 Shriram EPC Wind mill Table 8
  • 59. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 59 EXPORTS Autokast has been exporting its products to America and Saudi Arabia, since 1989. Now approximately 10% of the total annual production is exported. The Castings, which are exported, are all GI Castings. Foreign customers are: 1. National Pump Company, USA. 2. J-line Pump Company, USA. 3. Saudi National Pump Company, Riyadh. The most important benefits of exports are that the Company gets a higher price for its products when exported and that the payments are made in cash. MAJOR COMPETITORS The major competitors of Autokast Limited are the following: 1. LMW Foundry, Coimbatore 2. Simplex Castings, Bhilai 3. Southern alloy foundries, Chennai PRODUCTION PLANNING & CONTROL DEPARTMENT Production planning is the process of planning production in advance of operations, routing the materials and controlling the whole production accounting to the plans specified and scheduled. This department takes care of feeding and supporting materials such as sand, coal dust etc. to the production. The PPC department plans the product realization process. They Prepare the production and despatch schedule, material planning ,production follow-up, despatch and improvements. The department also monitors the stage wise progress of the process and it is recorded. SCOPE Planning of product realization, Control of production, Control of nonconforming products, Analysis of data. BRIEF DESCRIPTION OF PROCESS Preparation of production and despatch schedule - Material planning - Production follow up - Despatch - Improvements PROCESS PLANNING Based on work order, collected all input documents from Marketing Department and check the input for adequacy, if inadequate, call for required data. Prepare pattern method drawings and arrange to manufacture.
  • 60. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 60 Customer supplied patterns are to be inspected and if any modification is required, arrange for the same. If patterns are to be procured from vendors, forward four sets of pattern drawing to Purchase Department to arrange procurement. Major raw material requirements are assessed and necessary indents are raised for procurement Prepare a draft quality plan and circulate it to Production, Quality Control and Inspection Departments. Open up a product file which shall contain all input documents together with method drawing and copy of quality plan. Based on quality plan, make arrangements for necessary inspection and testing activities. PRODUCTION PLANNING Based on work order from Marketing Department, monthly schedule for pouring, Fettling and related activities shall be prepared. Copy of this planning sheet shall be distributed to all concerned departments, under intimation to MD & PM. Despatch schedule for the month shall be prepared and communicated to concerned departments. Progress of these activities shall be closely monitored and status reported to MD/PM via a daily report. This report shall contain production figure for the previous day, and cumulative till date, of pouring, Fettling machine and that of despatch and rejection. Requirements of major Raw Materials for Engineering and Pattern shop shall be planned and purchase requisition raised accordingly. Product stock position shall be maintained up to data and monthly stock position prepared and submitted to MD. Physical verification on inventory of Castings shall be done annually and report submitted to MD. RECORDS MAINTAINED  Pouring plan  Production, Despatch consolidated report  Fettling plan  Despatch Monthly  Despatch plan  Inventory as on date  Daily production report  Physical stock of Castings
  • 61. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 61 PROCESS ENGINEERING AND PATTERN SHOP DEPARTMENT Consist of Engineering and Pattern shop Departments. The Engineering department designs the product and the pattern shop makes the pattern for that product. In Engineering and Pattern Shop Department of Autokast, pattern of the object to be casted is constructed according to the sample provided by the customer. The sample may either be a drawing or the one in the form of what customer needs. OBJECTIVES  Time taken for development of Casting should be within 30 days  Manufacturing/servicing of pattern equipment has to be set as per time  90% of timely submission of feasibility report  Number of attempts to develop a Casting shall be reduced to maximum of 3 times PROCESS ENGINEERING Engineering department receives the work order from the Marketing Department with customer drawings and all necessary documents. The department checks some factors with regard to the order such as  Weight  Order quantity  Materials required
  • 62. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 62  Complication  Other technical details And submit the feasibility report back to the Marketing Department. After receiving the real work order they design the pattern, prepare and issue the process drawing to the manufacturing department. The departments also issue process cards and also do the follow up of sample development and maintain the sample development register. PATTERN SHOP Pattern shop is responsible for the pattern inspection, rectification/modification and periodical checking of patterns. A Pattern is a mould forming tool in the hands of Foundry men. A Pattern is a mould or the replica of the object to be cast. A Pattern is required even if one object has to be cast. A Pattern may be defined as a model or form around which sand is packed to give rise to a cavity known as mould cavity in which when molten metal is poured, the result is the Cast Object. Patterns are normally made up of wood, thermo coal etc. Patterns either customer supplied or manufactured in house or by sub-contractors are to be inspected with reference to corresponding drawings and inspection reports are prepared. In case of any rework the same shall be carried out and offered for inspection. Pattern is released for production only after inspection clearance. Selection of Pattern Materials The following factors assist in selecting proper pattern material 1) The number of Castings to be produced. Metal Patterns are preferred when the production quantity is large. 2) The desired dimensional accuracy and surface finish required for the Castings. 3) Nature of moulding process. 4) Method of moulding. 5) Shape, complexity and size of the Casting. 6) Casting design parameters and the complexity of the cast part. 7) Type of moulding materials. 8) The high probability of changing the Casting and hence the pattern in near future. An inexpensive pattern material under such conditions. 9) The chances of repeat orders. Types of Patterns For selecting a particular kind of pattern for making a Casting, one may consider the following points:  Quantity of Castings to be produced  The size and the complexity of the shape of the Casting to be produced  Type of moulding method to be used  Problems associated with the moulding operation such as with-drawing the pattern from the mould etc  Other difficulties resulting from poor Casting design or pattern design.
  • 63. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 63 In Autokast mainly two types of Patterns are used:- Match Plate Pattern – It consists of a match plate, on either side of which each half of a number of split patterns is fastened. Split Pattern – Patterns of intricate Castings cannot be made in made in one piece because of the inherent difficulties associated with the moulding operations. Such patterns are then made as Split Patterns. Pattern Making Tools 1) Measuring, Making and Layout Tools  Steel rule  Caliper  Marking gauge  Trisquare  Shrinkage rule  Divider 2) Tools for Clamping Purpose  Hand vice  C – clamp  Bar clamp  Hand screw 3) Sawing Tools  Coping saw  Compass saw  Bow saw  Panel saw 4) Drilling and Boring Tools  Hand drill  Gimlet  Auger bit  Centre bit 5) Wood Planning Tools  Jack plane  Block plane  Circular plane  Universal plane  Smooth plane Pattern Making Machines  Wood Turning Lathe : Make cylindrical patterns  Circular Saw : Used for ripping, cross cutting, grooving  Band saw : Used to obtain irregular shapes  Scroll Saw : Make intricate & irregular cuts on small jobs  Drill Press : For drilling and boring the holes
  • 64. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 64 Pattern Colors Patterns are imparted certain colors and shades  Black – Core surfaces to be left unmachined  Red – Cast surfaces to be machined  Red strips on yellow base – Loose pieces and seatings  Yellow – Core print seats  Black strips on a yellow back ground – Stop offs or supports  No color – Parting surfaces  Yellow stripes on black back ground – Core prints for machined openings. Records Maintained Register:-  Original drawing details  AKL drawing details  Drawing issue  AKL drawing issue  Process Sheet details  Pattern details  Pattern Shop load details  Pattern Shop log  Pattern inspection clearance  Pattern and Casting Inspection Formats:-  Process sheets  Pattern movement card PRODUCTION DEPARTMENT Production denotes the conversion of Raw Materials to semi-finished or finished products with the help of certain production processes. The main aim of any production system is to produce economically the goods and services required by the customer. Autokast Ltd is a Foundry unit producing Iron Castings for a variety of Industries. The Iron Castings are made of Cast Iron. Cast Iron is a general term that describes Iron, carbon, silicon alloys which are produced by pouring the molten metal into sand / metal moulds. Cast Iron is brittle and grey in colour. The carbon content in Cast Iron is more than that in Steel which makes it less malleable. By varying the silicon and carbon content at alloy, several types of core Iron can be produced each with different properties and uses.
  • 65. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 65 PRODUCTS OF AUTOKAST The Company‟s products at present cater to the needs of following segments of Indian and overseas Industries 1. Automotive 2. Tractor 3. Butterfly valve assembly 4. Agriculture 5. Wind mill energy and 6. General Engineering Industries DEPARTMENTS The manufacturing department of Autokast limited is divided into four divisions .They are, 1. Melting 2. Conventional line 3. High pressure line 4. Fettling 1. MELTING Before pouring into the mould, the metal to be cast has to be in the molten or liquid state. The raw material melting process is done in the melting department. For the preparation of liquid metal the Raw Materials like CRCA(cold rolled continuously annealed)scrap and HMI(heavy melting )scrap are brought to the Induction Furnace. The scrap is charged to the furnace with the help of electro magnet hooked in EOT cranes, the furnace can withstand a capacity of 6T with holding attachment and with a change over control system. Furnace is heated to about 1450 degree Celsius(including the loss due to transportation of liquid metal from the furnace to the pouring moulds).the slag is skimmed off from the molten metal by adding coagulant. The liquid metal is tested for its grades in comparison with the standards (eg: different grades of IS 210 for Cast Iron). The samples are tested at each stage of melting. The extra/excess chemicals components are added/removed to achieve the specification. Temperature of the liquid metal is adjusted by the electrical settings of the furnace and measured with measuring instrument(pyrometer)and is recorded in the log sheet. Finally the molten metal is tapped into clean pre heated Laddle and required quantity of inoculants is added to the stream for the purpose of homogeneous structure of metal Castings. Liquid metal is carried in this Laddle and is poured into the previously prepared moulds for the testing of final chemistry Laddle sample is taken. The other melting components are Foundry returns, pig Iron, coke(both petroleum and shell),Ferro silicon alloys, ferromanganese, nickel ,copper, aluminum, molybdenum, ferrotitanium etc.
  • 66. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 66 Records Maintained Register:-  Lining details  Laddle details Formats:-  Log sheet  Charts  Metallurgical control for HP Line  Metallurgical control for Conventional Line  Alloy addition 2. CONVENTIONAL LINE This is the semi-automated division of the manufacturing department. The main raw material used for mould making is silica sand. This silica sand is treated with sodium silicate, dried and mixed with flour dust and is filled into the pattern box. Carbon dioxide gas is passed through the sand for strengthening (CO2 process).then the core assembly is fixed. The moulds are painted with spirited paint for further finish. The metal pouring path is fixed and the liquid metal from the Laddle is poured through this. After a proper setting time the product is separated from the moulds and is dispatched from the section for finishing. Records Maintained Register:-  Mould shop planning  Core shop planning  Closing  Daily production  Consumption of materials  Mould box maintenance  Knock Out Formats:-  Daily production report  Pattern inspection  Knock Out and Decoring  Check points for closing  3. HIGH PRESSURE LINE High pressure line is fully automated. Green sand is the material used for high pressure molding at first the molding machine is inspected and the good working condition is ensured. The molding machine is operated at 6 to 7 kg/cm2 .at first the sand mix(silica sand mixed with Bentonite and Mentacoal).is made available to the machine in the pattern box. The sand mix is thoroughly rammed
  • 67. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 67 in the box to the required compactness by applying pressure. The core is placed for cavity formation. The metal is poured by the Laddle facility. Casting identification marks such as Sl No., month and year is punched in the specified area marked in the pattern and details recorded in the register. After a dwelling time of four to five hours the moulds are knocked out. The return sand shall be collected in an overhead hopper by means of conveyor belt and bucket elevator. Casting is sent to the decoding shop for further process. The molding box are cleaned, inspected and returned to mould box yard. All the mould boxes shall be identified by its size and serial number. Records Maintained Register:-  Sand property  Production details  Core production  Core shop consumption  Stock position of cores  Pouring reports  Mould box details Formats:-  Daily production planning  Daily production report  Daily core production report 4. FETTLING Fettling is the process by which unwanted parts of the Casting are cut off, cleaned and finished .this includes removal of gates ,risers from Casting etc .The Castings are send to the shot blasting machine from which Iron shots are blasted at high velocity and proper finishing is established. Records Maintained Register:-  Castings for Fettling  Castings to sub contracts  Painting details  Rejection details Formats:-  Production report  Finished product return no
  • 68. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 68 PRODUCTION PROCESS Metal 5)Melting 5)Handlin g molten metal 2)Sand Additives 1)Pattern Making 3)Core making and Sand 2)Sand mixing and preparation 4)Moulding 4)Mould assembling and handling 6)Pouring 7)Shaking out 8)Fettling & Finishing 9)Heat Treatment 10)Inspection & Testing
  • 69. PROJECT ON WORKING CAPITAL MANAGEMENT-AUTOKAST LTD, CHERTHALA Dc School Of Management & Technology Page 69 STAGE 1 – MOULDING SAND A mould material is one, out of which the mould is made. A mould material should be such that the mould cavity retains its shape till the molten metal has solidified. Sand is the principal moulding material in the Foundry Shop where it is used for all types of Castings. The most important characteristics of sand are its Refractory nature, Chemical Resistivity, high degree of Permeability and Flexibility. These properties vary from sand to sand and only those sands characterized by the foregoing features are considered for moulding work. In Autokast Silica sand is mainly used for moulding. Sources of Silica sand :- - River beds - Sea - Lakes - Desert Properties of Moulding Sands :-  Flow ability  Green Strength  Dry Strength  Hot Strength  Permeability  Refractoriness  Adhesiveness  Collapsibility  Fineness  Bench Life  Coefficient of Expansion  Durability MATERIALS USED AS ADDITIVES TO SAND Two types of additives used with sands in AKL are: 1. Reducing agents: These are used to improve surface finish of the Castings. Coal dust and pitch are the most common reducing agents. Coal dust suppresses the formation of silicates or Iron oxides due to the reaction of metal and sand and also reduces metal penetration. 2. Binders: The primary purpose of binders is to influence the bonding properties of sand. Dextrine is the common organic type of green binder used in AKL. Dextrine increases air setting and collapsibility. It prevents sand from drying rapidly.