Merlyn2 project


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Merlyn2 project

  2. 2. KEC Unit 2. HUBLIEXECUTIVE SUMMARYWorking capital management is one of the most important aspects of financial management.Every company requires management of its working capital to run its business smoothly andsuccessfully. Proper management of working capital is necessary to maintain both liquidity andprofitability of a company .The working capital management involves deciding upon the amountand the composition of current assests and how to finance these assests.working capitalmanagement has become an important tool to judge the performance of a business.Kirloskar electric company limited unit 2 was established in 1976 and ever since has maintainedits undisputed position as a market leader.The key benefit of the study is to get knowledge of correct and appropriate measures ofevaluating the working capital management and the application of different outcomes regardingthe ratio relating to working capital in the company. And the different measures to be taken forthe proper outcomes. The study also helps in finding out the capital management patterns in themanagement of cash, management of accounts receivables, and the management of theinventories of the company and the different aspects involved in the working capitalmanagement of kirloskar electric company limited unit 2.,. 2FATIMA DEGREE COLLEGE (BBA), HUBLI
  3. 3. KEC Unit 2. HUBLI INTRODUCTIONI studied the Unit 2nd of KEC at Hubli it would be better if we are well informed about theKirloskar group of industry.It was establishment of Kirloskar group of co’s made a very good significant change in thehistory of Indian electric industry , Even Mr.Laxman Rao Kirloskar founder of the groupprobably would not have dreamt about the group would grow to this large extent in such afashion .Founder Mr.Laxman Rao kirloskar strongly believe that ‘’Co’s progress was determined by theintegration of man and his intellect with technological growth and environment ‘’. His beliefpaid him of in such a manner that the group ranks in the top 20 industries in India.The very first product of Kirloskar was the ‘’Iron plough “which was must ahead of its time. Thedesign being done with the customer in mind Kirloskar become to be known as the other namefor the product.Since from its first product the group showed its commitment to continues innovation , quality ,continuing technology and advancement the group still has the same as its ‘’Golden Rule “ . 3FATIMA DEGREE COLLEGE (BBA), HUBLI
  5. 5. KEC Unit 2. HUBLI RESEARCH METHODOLOGYMethodology aims to the present a clear idea of the research procedure used in this study, sincethe valve of systematic and scientific research lies in Methodology the goals should be reachedwith accuracy using least amt of time.The method employed in the budget for collection and analysis of the information is the primarysource and secondary. Primary:- • Observation method :- By Observation the various steps in the work of the dept the data collected and also glancing over the task performed by the employees during the working hours . Secondary source:- Magazines, company profiles, Reports, etc. 5FATIMA DEGREE COLLEGE (BBA), HUBLI
  6. 6. KEC Unit 2. HUBLIMILESTONES IN THE HISTORY OF KEC • 1946 ---- KEC established at Bangalore. • 1948 ---- A new era opens for Indian K.E.C produces the country’s very first AC motors • 1954 ---- Impatient for progress, the company gets into product diversification producing its first transformers. • 1956 ---- First transformer manufactured. • 1958 --- A critical power situation inspires production of the country’s first transformers. • 1963 ---- The patient of breakdown continues. DC motors and DC generators roll off the assembly line. • 1965 ---- Market demand increases. India’s first motorized gear unit joins the K.E.C product range. • 1966 ---- Intensive research and development sets the pace for production of the first induction heating equipment. • 1973 ---- First oversees office at Malaysia. • 1976 ---- Office at Nairobi established • 1982 ---- New collaborations. Better products. Thyristor, Converters, made in collaboration with Thorn EMI, U.K. • 1987 ---- Introduction of CNC systems and factory automation. • 1989 ---- More collaboration. More products. With Fuji of Japan for investors and with Toshiba of Japan for UPS 6FATIMA DEGREE COLLEGE (BBA), HUBLI
  7. 7. KEC Unit 2. HUBLI • 1991 ----Toyo Denki collaboration for motors and generators up to 10MW/ MVA. Production of technologically advanced large DC motors and large AC machines in collaboration with AEG Daimler Benz of Germany up to 20MW • 1992 ---- The company starts production of Hi- Tech CRT based CNC systems. • 1993 ---- Kirloskar Electric becomes the first company in India to receive ISO 9001 certification for its entire product range and for all its manufacturing units. 7FATIMA DEGREE COLLEGE (BBA), HUBLI
  8. 8. KEC Unit 2. HUBLI 1995 ---- Took over Voltas Transformer and started manufacturing plant at Tumkur for Manufacturing units • 1996 ---- Celebrated Golden jubilee and started manufacture of wind turbine. • 2001 ---- Company restructure. • 2002 ---- First test lab was started at Tumkur. • 2003 ---- Received NVLAP certificate test lab. • 2004 ---- Customer Excellence Certificate. 8FATIMA DEGREE COLLEGE (BBA), HUBLI
  9. 9. KEC Unit 2. HUBLI • K.E.C. UNITS Units Place Products Unit - 1 Bangalore AC motors, AC generators, motorized gear units. Unit – 2 Hubli AC motors, AC generators, motorized gear units. Unit – 3 Peenya DC motors, generators, traction. Recently Closed Unit -4 Mysore • Industrial electronic group- thyristor devices, static invertors, UPS systems. • Factory automation group- digital readouts, CNC systems, Servo drives and induction heaters. Unit – 5 Bangalore Transformers. Recently Closed Unit – 6 Pune Automation electric equipments, small range induction motors and alternators up to 5 HP. Unit – 7 Tumkur Stampings, Die cast rotors/ bodies and coils. Unit – 8 Pune Cast resin, transformers, and oil filled transformers. 9FATIMA DEGREE COLLEGE (BBA), HUBLI
  11. 11. KEC Unit 2. HUBLI ORGANISATION SET UP OF KECBoard of Directors manages KEC Unit II. Mr. Vijay Kirloskar is the Managing Director andChairman. Under the managing director, there is an Executive Vice- President. A chiefexecutive manages each of this unit.BOARD OF DIRECTORSVijay Kirloskar : Chairman and Managing DirectorAgarwal. S.N : DirectorAnil Kumar Bhandari : DirectorSarosh. J. Ghandy : DirectorMythili BAL Subramanian : IDBI NomineeRamesh. D. Damle : LIC NomineeMalik. P.S : Dy. Managing DirectorVenkatesh Murthy. D.R : Director Sales & MarketingCompany Secretary : P. Y. MahajanAuditors : B.K.Ramdhyani & co. Bangalore 11FATIMA DEGREE COLLEGE (BBA), HUBLI
  12. 12. KEC Unit 2. HUBLIBANKERS • Bank of Baroda • Bank of India • State bank of India • State bank of Mysore • State bank of Travancore • Standard Chartered Bank • The Hong Kong & Shanghai Banking Corp.REGISTERED OFFICEIndustrial Suburb, RajajinagarBangalore – 560010 12FATIMA DEGREE COLLEGE (BBA), HUBLI
  13. 13. KEC Unit 2. HUBLIFACTORIESBelvadi Industrial Area, Mysore • Gokul Road, Hubli • Hirehalli, Tumkur.QUALITY POLICY The quality price of KEC shall be to design, manufacture and market at competitiveprices, products of such quality, which results in customer satisfaction, quality reputation andmarket leadership.MISSION • To remain a leading producer of electrical technology products in India. • To continuously grow in our business and become a significant player in the world market. • To maximize return on investment. • To achieve international levels of excellence in technology and quality.VALUES • Products of highest technology and quality. • Customer orientation • Teamwork among our people. • Profits for growth 13FATIMA DEGREE COLLEGE (BBA), HUBLI
  14. 14. KEC Unit 2. HUBLIGUIDING PRINCIPLES • Innovate continuously to excel in design and manufacturing. • Development products required by market. • Manufacture products of highest quality • Focus on customer in all actions. • Respond promptly to customer needs. • Deliver supplies on time every time. • Treat each other with trust and respect to build a team. • Develop people by training and delegation. • Adopt process-oriented thinking, continuous improvement, and management by facts priority. • Reduce costs constantly to remain competitive. • Earn enough profits to fund growth and diversification. • Offer goods and services at competitive prices. • Look upon dealers, suppliers and business associates as partners. • Maintain safe, clean and healthy environment. • Conduct business in a socially responsible manner. 14FATIMA DEGREE COLLEGE (BBA), HUBLI
  17. 17. KEC Unit 2. HUBLI ORGANISATION STRUCTURE OF KEC UNIT II Personnel Department (Senior Manager) HUBLI Chief Executive Deputy General Manager Product Finance Enginee Quality Marketi M.M.D Stores Central ion Depart ring Assuran ng Plannin (Assista (junior Depart ment Depart ce g (Deputy nt Manag ment ment Depart (Senior Manag Manag er) (AssistaPerson(Senior Manager) ment (Senior er) er) ntnel Manager) Manager) (Senior Manag Manager)Depart er)ment 17 FATIMA DEGREE COLLEGE (BBA), HUBLI
  18. 18. KEC Unit 2. HUBLI MANPOWER IN KEC UNIT-II AS on 01-05-2007 Table: 1 Human Resource Total Members Daily rated employees (DRE’s) From grade 432 1 to 8 Monthly rated employees (MRE’s) From 45 grade 1 to 7 Officers, Engineers and above From grade 85 8 to 16 Total 562Besides these permanent employees, around 81 trainees are recruited and contract Labour arehired only for some specific purposes and in never employed in production or feeder shops.Officer’s cadre is divided into 2 categories. • Junior officers from the grade from 5 to 7 • Junior officer 1: Grade 5 • Junior officer 2: Grade 6 • Junior officer 3: Grade 7 2. Senior officers from the grade from 8 to 9 Officer: Grade 8 Senior Officer: Grade 9 18FATIMA DEGREE COLLEGE (BBA), HUBLI
  19. 19. KEC Unit 2. HUBLIThe manager cadre is classified as follows from grade 10 to 16Assistant Manager - Grade 10Deputy Manager - Grade 11Manager - Grade 12Deputy Senior Manager - Grade 13Senior manager - Grade 14Deputy General Manager - Grade 15General Manager - Grade 16 19FATIMA DEGREE COLLEGE (BBA), HUBLI
  20. 20. KEC Unit 2. HUBLIPRODUCT PROFILE AC Generator AC motor ` DC Motor Traction EquipmentWe design and manufacture our products according to the standards of : • ISO (International Organization for Standardization) • IEC (International Electro technical Commission) • BIS (Bureau of Indian Standards) • BSI (British Standards Institution) • JEM(Japan Electrical Manufactures Association) 20FATIMA DEGREE COLLEGE (BBA), HUBLI
  21. 21. KEC Unit 2. HUBLIPERSONNEL DEPARTMENTK.E.C, company recognizes its employees as its most important asset for its continued growth.Human resources management in Kirloskar Electric Company shall striver to ensure continuousorganizational growth by nurturing the strengths of its employees and providing the environmentand opportunity for every individual to rise to his/her highest potential, identity and achievehis/her personal goal within the framework of organizational, social and natural objectives. Toachieve this following sections are formed to perform the various functions including, PositiveMotivation, Preparation and maintenance of quality plans with aid of systems, procedures andwork instructions published collectively in quality manuals.Scope: Personnel Department is applicable to personal welfare safety and security.Responsibility of Personnel Department:Implementation and maintenance of various functions is the responsibilities of the Head ofDepartment (HOD) with appropriate duties assigned to section in charges (SIC) and staff.Functions:The Main functions of Personnel Department are: HOD-PERSONAL AND INDUSTRIAL RELATIONS: • To ensure that harmonious relations exists between workers and management • To ensure safe working conditions and to provide safety equipments. • To Co-ordinate security and vigilance activities • Manpower planning accountability. 21FATIMA DEGREE COLLEGE (BBA), HUBLI
  22. 22. KEC Unit 2. HUBLI ORGANISATIONAL CHART OF PERSONNEL DEPARTMENT HOD SIC TRAINING DEPARTMENT SECURITY WELFARE IND.REL IN CHARGE ASSISTANT OFFICER OFFICER OFFICER CANTEEN AMBULANCE TIME OFFICE ROOM I.CMARKETING DEPARTMENT Success of any product totally depends on HO it is marked and positioned din the market.Marketing department is one of the important functional divisions of KEC UNIT-II, which isbasically, identifies and meets the needs of customers profitably. The people in the marketingdepartment are responsible for the growth of a business concern because they come in directcontact with the customers who now are considered as King of the market as it is a buyer’smarket and no more a seller’s market. 22FATIMA DEGREE COLLEGE (BBA), HUBLI
  23. 23. KEC Unit 2. HUBLI As marketing departments basic principle is to take care of the customers to achieve waythey have divided their department in to their sections such as: • Marketing • Customer Service • CommunicationMarketing is further having its subgroups i.e. technical group, which does the job of tendering orequally handling Execution, is planning group.The network of marketing department has all over India at 28 branches known as salesoffice/branches.The function of this division in K.E.C UNIT-II starts to determine the needs of the customerstheir documents concurrently then accurately to communicate then to various departments. 23FATIMA DEGREE COLLEGE (BBA), HUBLI
  24. 24. KEC Unit 2. HUBLIMarketing:-When a branch office in any part of its network receives an order in case of special product ( per customer requirements) it sends an order acceptance copy i.e. duly verified by the salesengineering of that branch to the tendering group where this OA copy is examined and sent toplanning department and further forwarded engineering department for design and developmentof special product who prepares its engineeringSpecification and sends it to the purchase department if any new or additional components areregard to the production department. The marketing department based on the demand contactsthe materials management department issues materials on the amount and the type of material,which required. Based on the amount required the department based on the demand contacts thematerials management department issued materials on the amount required the productionscheduling, routing and the like has to be carried out. K.E.C UNIT-II is planning turnover is 100 crores for last year achieved to the 84 crore.This planning for turnover is 110 crores.AC-Generator Marketing:- In case of AC-Generator the final customer is directly purchase through Manufacture ofBranch office or Dealer. The O.E.M. (Original Equipment Manufacturer) who in turn places the purchase order tothe branch office, the order acceptance form along with desired specifications is studied.Carefully in the marketing department and if found possible for production is immediatelyinformed to the O.E.M the information is also forwarded to the production units 24FATIMA DEGREE COLLEGE (BBA), HUBLI
  25. 25. KEC Unit 2. HUBLIAC Motor Marketing:- The customer decided the rating of a motor required and approaches to the dealer, thedealer in turn acceptance and passes it on to the branch office which prepares an orderacceptance and passes to customers and another to the unit of the production otherwise customeris directly contact through the marketing department.The order acceptance is then separated into the one for standard products and other for specialproducts. The special products requirements have to be discussed with the engineeringdepartment and then accepted.CREDIT POLICY: Generally K.E.C-II does not follow the policy. But sometimes the credit is issued to aparticular customer depending on the volume of the purchase, the type of a customer K.E.CUNIT-II has a credit policy extending to a maximum of 30 days.Objectives:The objectives of marketing department are to achieve customer satisfaction with qualityproducts, price, and delivery in time, and presale service after sale service, maintain brand imageand earn profit for further diversification.COMPETITIORS • Organized sector • BHEL • ASEA • Crompton Greaves Ltd. • Bharat Bijli ltd. • Asian Brawn Boweri Ltd (ABB Ltd.) • General Electrical Company Ltd. • Jyoti Ltd. 25FATIMA DEGREE COLLEGE (BBA), HUBLI
  26. 26. KEC Unit 2. HUBLIUnorganized Sector: • Mainly cottage industries.Direct Customers. • OEM’s (Original Equipment Manufacturer’s) • OEA’s (Original Equipment Assembler’s) • Government organization (Railway, Airports) • Indian Defense • Indian Railways • Other Industries 26FATIMA DEGREE COLLEGE (BBA), HUBLI