A REPORT ON ORGANIZATIONAL STUDY

AT

CARBORUNDUM UNIVERSAL LTD (CUMI)NALUKETTU , KORATTY

SubmittedALIAS A Y

Under the Guidance ofPROF . S . G . BHAT

InPartial fulfillment of the requirements for theaward of the degree ofMaster of Business Administration

Department of Management Studies

ADI SHANKARA INSTITUTE OF ENGINEERING & TECHNOLOGY(An ISO 9001:2008 Certified Institution)

(2012-2014)

DECLARATION

I, ALIAS A Y hereby declare that this report of the Organizational Study at CARBORUNDUM UNIVERSAL LIMITED, KORATTY , NALUKETTU has been prepared by me under the guidance of Prof. S.G. BHAT, ADISHANKARA INSTITUTE OF ENGINEERING AND TECHNOLOGY, Kalady . I also declare that this training report is my original work and it has not previously formed the basis for award of any degree or diploma.

Date:Place: Kalady ALIAS A . Y.

ADI SHANKARA INSTITUTE OF ENGINEERING & TECHNOLOGYShankar Nagar, Mattoor, Kalady

CERTIFICATE

Certified that this is a bonafide record of the project work Organizational Study submitted by ALIAS A Y during the year 2012-2014 inpartial fulfillment of the award of the degree of Master of Business Administration.

Faculty Guide H.O.D (MBA) Principal (ASIET)

ACKNOWLEDGEMENT

The successful and timely completion of this Organization Study and its reports become possible only with those eminent personalities who extended their wholehearted support and valuable assistance.

First of all I would like to extend my gratitude to our Principal Dr. Prof. S G IYER, our HOD and guide Prof. S G BHAT of ASIET College, Kalady for their excellent encouragement and support throughout the course of this project.

I express my humble gratitude to Mr. JULIUS V. D. , HR Executive of Carborundum Universal Limited (CUMI), Nalukettu ,Koratty for his guidance , support and friendly cooperation which shaped this organizational study from its completion . .I express my sincere thanks to Mr. BIJU ISSAC, Plant manager of Carborundum Universal Limited (CUMI), Koratty .

Above all, I thank the power and spirit of universe, the Almighty, for his inspirations throughout the life.

Date: ALIAS A Y Place: Kalady

TABLE OF CONTENT

Chapter No.TitlePage No.

1 Introduction

- Objective of study - Scope of the study - Limitation

2Industry Profile

3Company Profile

Organisation Structure

Product Profile

4Functional Departments

4.1 Operation department

(a) Production department (b) Quality department (c) Maintenance department

4.2 HR department

4.3 Finance department . 4.4 Shipping &Marketing . department . 4.5 System department

5SWOT Analysis

6Conclusion

Appendix

Bibliography

CHAPTER 1

INTRODUCTION

INTRODUCTION

The organizational study was conducted in Carborundum Universal Limited, Koratty. As a part of MBA course this organizational study helps to know about the organizational activities and various functions of the different department . The organizational study was mainly conducted for knowing the particular organization and also for getting amble information about the activities of each department. Carborundum Universal was established in 1954 as a joint venture between the Murugappa Group, India, the Carborundum Co., USA, and the Universal Grinding Wheel Co. Ltd, U.K. . The main business activity of Carborundum Universal involves manufacture of coated abrasives, bonded abrasive, super-refractories, electro-minerals, industrial ceramics, and ceramic fibers. Further, CUMI produces about 20,000 different varieties of abrasive products, refractory products, and electro-minerals. Carborundum Universal Ltd. has 10 manufacturing facilities across India and these manufacturing facilities are meticulously connected with wide network of distributors and sub distributors .

CUMI is known to be an innovator and exports its products to 43 countries spread across North America, Europe, Australia, South Africa, and Asia. All the manufacturing facilities of Carborundum Universal are ISO 9001:2008 , ISO 14001: 2004 and ISO 18001: 2007 certified for quality standards , environment-friendly and health-safety manufacturing practices respectively.

Objectives of the study:

To study the functions of various departments To understand the process flow in each departments To understand hierarchical structure of various departments To do SWOT analysis of organization To have an exposure to the working environment

Scope of the study:The study has been conducted at Carborundum Universal Ltd, Koratty, Thrissur, Kerala, during the period of May, 2013.The study focuses on overall understanding of how the various departments in the organization function.

Limitation :

Time is a major limitation since the organizational study was only for a period of one month Officers were at the peak of work and busy schedule of the department heads

CHAPTER 2

INDUSTRY PROFILE

INDUSTRY PROFILE

World scenario The electro mineral industry faced competition from imports but this was counted by delivering quality product . In the export market, removal of anti-dumping duty of Chinese product export to Europe. However during period the European counties are falling to financial crisis . Many of companies stopped their production or quantity of production is decreasing due to financial crisis .

Indian scenarioCUMI will continue to focus on quality and application, specific product offering and on improving its customer base. In the domestic market there are 3 manufactures for electro minerals. CUMI is market leader in the Indian Industry .The export market will be targeted with Silicon Carbide micro grit with improved in product quality. CUMI is a major player in the domestic market for the Brown and White Fused Aluminum Oxide and Silicon Carbide. The key success factor in the industry is cost and quality, while entry barriers are sophisticated technology. The availability of substitute product, product differentiation and imports continue to be the principle challenge in the business.

State ScenarioThere was a 17% increase in power tariff in Kerala, which adversely affected the profitability of the electro-minerals industry. This was future compounded by the low power plant due to poor monsoon in Kerala last year. The cost push created by improvement in operating efficiencies of the country. Use of consumption and reduction in power consumption and improvement in crude recovery helped in the same.

CompetitionsIn India there are four main players in this Industry. Apart from CUMI, SNAM Abrasives, Orient Abrasives and Grind well are the major players. In order to mitigate the competition risk, CUMI entered into a joint venture with Wendt India and holds 40% of its share capital. After the joint venture, it now offers full range of abrasives to its Customers viz. conventional and super abrasives. Super abrasives are manufactured by Wendt India Ltd. at its plant located at Hosur in Tamil Nadu. CUMI is a market Leader in Indian abrasive industry and enjoys a share of more than 45% followed by Grind well Norton which has a share of 40% in the abrasive market.

Major Players (Major Competitors ) 3M Coated abrasives division(USA) Abandon Silicon Carbide of Aluminum production complex(ABASIC) Abrasive Grains E.T Powder SA(AGP)France Beiging Kingder Resource and Technology Development Corporation (China) Carborundum Universal LTD (India)

Carborundum Universal Limited manufactures the widest range of Bonded and Coated abrasives in the world. The Rs 314 crore, the company pioneered the manufacture of coated and bonded abrasives in India, besides super refractories, electro minerals, industrial ceramics and ceramic fibers. CUMI makes over 20,000 different varieties of abrasives, refractory products and electro-minerals, manufactured at 14 locations. CUMI has the distinction of having all its manufacturing units ISO 9001: 2008 certified.

Industry overviewCompetition is increasing day by day so that the product development will be the main criteria. Our mineral resources are limited so there is a challenge in future development. High capital investment, limited market, sophisticated technology, availability of substitute products, product differentiation & import are the principle challenges in this industry.

ExportsCarborundum industry plays a significant role in the growth of Indian economy and it is an important component of global trade.. It is the second largest industry of India and is the largest foreign export earner, accounting for 35% of the gross export earnings in trade .They export 23 countries across the world.

CHAPTER 3

COMPANY PROFILE

COMPANY PROFILE

ESTABLISHMENTCARBORUNDUM UNIVERSAL LTD (CUMI) Carborundum Universal, also known as Carborundum Universal Ltd (CUMI) is an India-based coated and bonded abrasive manufacturing company .Carborundum Universal was established in 1954 as a joint venture between the Murugappa Group, India, the Carborundum Co, USA,and the Universal Grinding Wheel Co. Ltd, U.K. The main business activity of CUMI involves manufacture of coated abrasives, bonded abrasive, super- refractories, electro-minerals, industrial ceramics, and ceramic fibers. Further, CUMI produces about 20,000 different varieties of abrasive products, refractory products, and electro-minerals. Carborundum Universal Ltd. has 14 manufacturing facilities across India and these manufacturing facilities are meticulously connected with a wide network of distributors and sub distributors. The company pioneered the manufacture of Coated and Bonded Abrasive in India in addition to the manufacture of Super Refractories, Electro Minerals, Industrial Ceramics and Ceramic Fibres. Today the company ranges over 20,000 different varieties of abrasives, refractory products and electro-minerals are manufactured in ten locations across various parts of the country.

CUMI-Business Distribution (As per the revenue)

CUMI is known to be an innovator and exports its products to 23 countries spread across North America, Europe, Australia, South Africa, and Asia. All the manufacturing facilities of Carborundum Universal are ISO 9001:2008 certified for quality standards and ISO 14001 certified for environment-friendly manufacturing practices and OSHAS 18001 certified for health and safety respectively. Carborundum Universal Ltd Koratty , electrominerals unit established in 1985 . The R & D wing comes out with constant innovations and product up gradations of products, which makes the company a world leader in grinding technology. Its core competence provides total grinding solutions which enables maximum grinding efficiencies and reduced cost for customers.

COMPANY HISTORY YEAR EVENTS

1954-1963 Revenues Rs.19 million

Incorporate as a joint venture between caborundum company, USA/Universal Grinding Wheel Company, UK and the Murugappa Group, India. Acquired a coated abrasives facility from Ajax Products pvt.ltd. Bonded abrasives facility set up at Chennai, India Bauxite mining at Bhatia,gujurat,india

1964-1973 Revenues Rs.78 million

Manufacture of super refractories at Chennai, India Brown aluminum oxide grains plant at Edappally, India Bauxite mining at Bhatia, Gujarat

1974-1983 Revenues Rs.337 million

Acquisition of Eastern Abrasives Ltd,a coated abrasives manufacturer in Kolkata, India Second bonded abrasives plant at Hosur, ,India Established MMECL as a joint venture with Morgan Group plc,for ceramic fibres

1984-1994 Revenues Rs.1308 million

Expansion of bonded abrsives plant at Hosur with a modern facility for vitrified grinding wheels. Silicon carbide plant at Koratty & Refractories plant Ranipet,India Industrial ceramic plant at Hosur, India Acquisition of 40% interest in Wendt (India) Ltd., a joint venture with Wendt Gmbh, Germany for super abrasives.

1995-2004 Revenues Rs.3150 million

12 MW Hydel project at Maniyar ,Kerala Second unit at Edapally for manufacture of brown aluminum oxide grains. Acquired a controlling interest in Cut fast Abrasive Tool Ltd,and cut fast Polymer ltd,a Chennai Based abrasive manufacturer and subsequent mergers Established a 5.5MW natural gas based thermal power plant in Nallur in Tamil Nadu, India through Southern Energy Development Corporation Ltd. Acquired Prod rite Anticorrosive ltd, a leading player in anti-corrosion engineering. Cloth proceeding facility at Maraimalainager ,Tamil Nadu

2005-2012 Revenues Rs.12126 million

Capital investment of about Rs.4 billion for various modernization, expansion/new product projects. Automated thin wheel facility at Hosur and Chennai, India Modern silicon carbide micro grit plant in Koratty, India Modern polymer manufacturing facility near Chennai, India Establishment of CUMI Middle East & CUMI Canada Inc. Establishment of state of the-art coated abrasives Sriperambudur ,Chennai ,India Acquisition of monolithic refractory facility in Jabalpur, India Acquisition of Volzhskiy Abrasives Works, Russia Acquisition of the Technical Ceramics Unit at Aurangabad, India Acquisition of 51% holding Foskor Zirconia (Pty)Ltd ,South Africa, the worlds largest manufacturer of Zirconia World class facility for wear resistant liner, tiles, Hosur, India Manufacturing facility for Thin Wheels, Uttarkhand, India Manufacturing facility for Power Tool at Jigani, Bangalore, India. Commissioning of a modern 1,000 tonne vitrified bonded abrasives plant & 2,000 tonne organic bonded abrasives facility in China Establishment of state-of-the-art metalized cylinder plant at Hosur, India Establishment of state-of-the-art super refractorys plant at Ranipet Serkaddu,India Setting up of a modern facility for manufacture of anti-corrosive products at Serkaddu, India Establishments of automated silicon carbide micro grit plant in Cochin SEZ

Koratty plantCarborundum Universal Limited Koratty , Electrominerals Macro unit established in 1985 . The plant main product macro Silicon Carbide . Modern Silicon Carbide micro grit plant established in 2005 . Now the plant capacity , Plant macro unit about 1000tons per month and micro unit about 750 tons per month . VISSION AND MISSIONVision:The vision of the Carborundum Universal Limited is we will be admired technical ceramic company driven by innovation continuously enhancing stakeholder wealth

Mission:The mission of the Carborundum Universal Limited we will steadily improve EMDs profitability and grow aggressively in new products and micro grits. To be innovative, resourceful, and profitable company. To meet customer requirements of quality service and price consistency. To make doing business with us easy, and delightful to our customers. To provide an entrepreneurial environment in which employees can respond to the needs of business and service, earn fair rewards and can be satisfied.

OBJECTIVES To maintain the market leadership. To minimize the cost incurring in production process. To maintain the product quality. To be competitive at all markets. To be compliment to all global quality standards. To maintain the top position in the industry. To utilize the new technological changes for the benefit of the company

Forward into the Future Carborundum Universal Limited is gearing for its next phase of growth and expansion .Growth that could be defining and provide a quantum leap in terms of terms of scope and scale .Continuing its journey in sustainability , the company has drawn up plans for expansions , acquisitions and synergistic alliances with international technology providers . Flagging the commencement of this phase , CUMI has entered into an agreement for acquisition of a fused minerals and super refractory products manufacturing facility which will be named as Thukela Refractories , South Africa . CUMI s vision is value driven and based on trust and enduring people relations . Relationships that transcend transactions and celebrate sustainability as an integral part of growth .

ENVIRONMENTAL POLICY:We at CUMI are committed to be an eco friendly organization and shall strive to protect, preserve and to improve our environment. This will be achieved through Continual improvement of the operations for achieving better environmental performance Optimizing usage of energy and other resources Minimizing waste generation and disposing appropriately to reduce the on the environment Complying with environmental legislations and regulations other requirements to which the organizations subscribes Creating environmental awareness among all those who work and on behalf of the organization

QUALITY POLICYWe shall proactively meet customer expectation by providing quality products and services. This will be achieved through:1. Total commitment of the management in implementing an effective quality management system 2. Continual technological development in fulfilling changing need of the customer.3. Total employee involvement for continues improvement 4. Enhancing employee competence through education and training5. Building mutual beneficial relationship with suppliers

BOARD OF DIRECTORSMr. M . M. Murugappan : ChairmanMr. Subodh Kumar Bhargava : Non executive DirectorMr. T L Palani Kumar : Non executive Director Mr. Sridhar Ganesh : Non executive DirectorMr. Lakshminarayan : Non executive Director Mr . Shobhan M Thakor : Non executive DirectorMr. Sanjay Jayavarthanavelu : Non executive DirectorMr . K Srinivasan : Managing Director

CUMI Plant Locations

1 CUMI Plant location

CUMI , Tiruvottiyur ,Tamil Nadu CUMI , Bonded Division , Hosur ,TN CUMI , Cutfast Division , Pallikaranai , TN CUMI , Parganas District , West Bengal CUMI WINDFARM , Tirunelveli , TN CUMI , Industrial Ceramics Division , Dharmapuri , TN CUMI , Super Refractories Division , Ranipet , TN CUMI , Electrominerals Divisions ,Kalamassery , Kerala CUMI , Micro plant , Cochin SEZ , Kakkanad

2. Plant locations of Subsidiaries / Joint Ventures

Sterling Abrasives Ltd , Gujarat Muragappa Morgan Thermal Ceramics , Ranipet ,TN Wendt Ltd , Hosur , TN Volzhsky Abrasive Works , Russia CUMI Abrasives & Ceramics Co. Ltd , China CUMI Australia PTY . Ltd , Malaga CUMI Canada Inc.

ORGANISATION STRUCTURE

ORGANISATION STRUCTURE

M DK . S . SREENIVASAN

SENIOR VICEPRESIDENT (EMD) N ANANTHASESHAN

GENERAL MANAGER ( MANUFACTURING) A R SATHEESH

SYSTEMADMINI-STRATOR SR MANAGER ENGINEERING & MAINTENANCESENIOR MANAGER HR SENIOR MANAGER TQM & QASENIOR MANAGER SHIPPINGMANAGERACCOUNT SENIOR MANAGER MANUFACTURINJG

DEPUTY MANAGER QAHR EXECUTIVEDEPUTYMANAGER SHIPPING EXECUTI-VES MANAGER MANAFACTURI-NG (MACRO)ASSITACCOUNTMANAGER MANUFACTURING (MICRO)

SUPERVISORSTORE

OPERATIVESTEAM MEMBERS DM MANUFACTURING DM MANUFACTURINGSUPER-VISORSUPERVISOR

TEAM MEMBERSOPERATIVESJR SUPERVISOR JR. SUPERVISOR

OPERATIVESOPERATIVES

NATURE OF PRODUCTSilicon Carbide is a man made mineral of extreme hardness and sharpness. It is the ideal abrasive for grinding / sanding materials of low tensile strength such as Cast Iron, Brass, Aluminum, Bronze etc. Its thermal properties make it an excellent medium for use in the manufacture of refractory products and crucibles. Silicon Carbide is produced by a process involving the electrochemical reaction of silica in the form of quartz with Carbon in the form of raw petroleum coke. The stoichiometric mixture is reacted in an electrical resistance furnace at a temperature greater than 2200C to yield high quality crystals. The large crystals are then segregated, crushed, cleaned of magnetic impurities in high intensity magnetic separators and classified into narrow size fractions to suit the end use. Dedicated lines produce products for different applications.Silicon Carbide Grains are also used in marble and granite polishing, manufacture of Kiln furniture and as a deoxidizer in Iron and steel making.Silicon carbide (SiC), also known as carborundum, is a compound of silicon and carbon with chemical formula SiC. Silicon Carbide powder has been mass-produced since 1893 for use as an abrasive. Grains of silicon carbide can be bonded together by sintering to form very hard ceramics which are widely used in applications requiring high endurance, such as car brakes, car clutches and ceramic plates in bulletproof vests.

CHAPTER 5 FUNCTIONAL DEPARTMENTS

4.1 .a. PRODUCTION DEPARTMENT

Production department structure

GENERAL MANAGER

SENIOR MANAGERMANUFACTURINGMANAGER MANUFACTURING MICRODM MANUFACTURING MANAGER MANAFACTURING MACROJR SUPERVISOROPERATIVESOPERATIVESJR SUPERVISORDM MANUFACTURINGSILICON CARBIDE is the major product produced in CUMI Ltd. Raw materials used are quartz and raw petroleum coke. These two raw materials are furnished at a temperature of 2200 C. This furnished product is classified in to two Macro Micro

MACRO1) Furnace plantThe raw materials of the product are quartz and coke. They are mixed along with reclaim for making mix charge as per the mix card issued by QA .One mix charge should be nearly 4tonnes ( ONE MIX = COKE 560 kg ,QUARTZ 800 kg ,Brg1 200kg ,Brg2 2350kg ,Water 100L ).Like wise 20 mixes will be used to fill a furnace. Furnasing will continue for 48 hours. After that it will be allowed for 16 hours air cooling and 8 hour water cooling .Cooled pig will be manually sledged to remove half reacted crushed in Jaw crusher and it will be send to GP for further crushing and grading.

2) Grain plant CrushingMacro grit is the crushing of silicon carbide through different crushing such as BARMAC, Raymond mill and other silicon carbide is crushed in to grains. Hence we derive powder form of silicon carbide, macro grains. MagnetingDuring the process of crushing some iron particles are attached with macro grit which is then removed through high force magnets SizingIt is for grading the product. Different sizing machines are used with different openings. Quality control checkDetailed chemical and physical analise is done to determine the iron percentage, silicon carbide, size, magnetic, imputation and bulk density.

BaggingAll the grits are then bagged and send to Chennai for further production. They use HDPE bags. Paper bag used for HDPE restricted countries.

MICRO

The input of micro grit plant is the end product of the macro plant. But in this plant the grit are imported from Russia due to finer quality and economies available1) Jet MillingIts operations refer to crushing using compressed air. This is an iron free grinding process.2) Air ClassifierWith the help of air classifier product are graded.3) Quality control checkThe chemistry, size and quality of the product is checked and assured.4) BaggingThe end production is then packed for shipping.

Bonded Grain Sizes AvailableF12 , F14 ,F16, F20, F24, F30, F40, F46, F54, F60 , F70, F80, F90 , F100, F120, F150, F180 and F22O as per FEPA ( Federation of European Producers of Abrasives) standard 42-1:2006

COATED GRAIN SIZES AVAILABLE12, 14,16, 20, 24, 30, 36, 40, 46, 54, 60, 70, 80, 80, 90, 100, 120, 150, 180 and 220as per FEPA (Federation of European Producers of Abrasives) standard 43-1:2006.

BLACK SILICON CARBIDE MICRO

GRAIN SIZES AVAILABLEF240, F280, F320, F360, F400, F500, F600, F800, F1000 and F1200.

Applications are: Bonded AbrasivesBonded abrasives is a matrix of closed size abrasive grains pressed together with the help of vitrified, resinoid or rubber bonding material into a variety of shapes, like grinding wheel, honing stone etc. The matrix is fired at high temperature to provide a high strength bonding between the abrasive grains.CUMI specialize in manufacturing of a complete line of closed sized abrasive grains in various shapes, sizes and densities, etc. to perfectly fit any grinding application and working condition.CUMI Sharp grains are blocky sharp edges with low iron and silica content. Its high toughness & hardness (Mohs Hardness 9), excellent abrasion resistance, high corrosion resistance properties combined with cooler cutting characteristics, appropriate friability, multi-fracturing properties exposing sharp edges and self sharpening characteristics makes it an ideal raw material for the manufacturing of bonded abrasive for all applications.

Typical ApplicationsBall grinding & ball lapping wheelRice polishing wheelGear grinding wheelCam grinding wheelCrankshaft grinding wheelValve components grindingInternal grinding wheelThin wheelTool room grinding wheelRoll grinding wheelRazor blade wheelFlute grindingBearing grinding wheel

. Coated AbrasivesCoated abrasives is a three component system consisting of abrasive grains adhering to the semi-flex backing like paper, cloth, fibre, plastic film etc with the help of resin or glue bond.Coated Abrasive is manufactured as rolls which is then converted into different foams like belts, disc, flap disc, flap wheel & spindle mop, sheet & non- woven products.CUMI specialize in manufacturing of a complete line of closed sized abrasive grains in various shapes, sizes and densities, etc. to perfectly fit any coated abrasive application and working condition.CUMI Sharp Grains for coated abrasives are angular, sharp edged with high capillarity for instant adhesion to resin or glue bonds and electrostatic characteristics carefully monitored to provide consistent and reliable grain projection. The High hardness (mohs hardness 9) and toughness of the CUMI Sharp grains combined with the multi-fracturing property, self sharpening characteristics and cooler cutting characteristics of the grains makes it an ideal raw material for the manufacturing of coated abrasives for any application.

Typical ApplicationsCoated abrasives are used by hand or on machines, applications are extremely varied, at home and in industry for:Fine finishes: hand sanding or polishing of wooden cabinets, car bodies primers, metals.High precision operations: Optical lens polishing, magnetic head super-finishing.Medium stock removal with portable or fixed machines: Floor sanding, disc grinding of metal, endless belts grinding of wood, metal, glass.Heavy stock removal with wide (up to 3 m) belts on high power machines to grind stainless steel sheets or coils or to calibrate plywood or chipboard panels.

Brake Lining

Brake lining are mainly composed of a heat resistant and strong fiber which are relatively soft yet tough with high co-efficient of dynamic friction mounted to a solid backing using high temperature adhesive or rivet. In order to increase the dynamic co-efficient of friction and decrease the wear of the brake lining under high temperature produced during braking, ceramic grains are added to the fiber.CUMI Sharp micro grains with stringent particle size distribution possesses high toughness & hardness, excellent abrasion and wear resistant and physical & chemical stability at high temperature which makes it an ideal additive to the brake lining for higher dynamic co-efficient of friction, longer life and hence better performance of the brake lining.

Typical ApplicationsAutomotive brakeRail brakesAir-craft brakes

High Abrasion Resistance Coating High abrasion resistance coating is a composite system containing a high strength resin like epoxy and high abrasion resistance ceramic particles. The high abrasion resistance coating is in the form of a thixotropic paste which could be easily applied on the surface with a brush or in the form of a putty containing up to 70% solid mass. The high abrasion resistance coating is used as a protective coating or to repair worn areas in material handling equipment or components conveying abrasive materials. CUMI Sharp micro grains possesses high hardness (more than 9 Mohs), high toughness, excellent abrasion resistance, high resistance to chemical attack and corrosion. These characteristics of CUMI sharp grains makes it an ideal raw material for the manufacturing of High abrasion resistance coating.

Typical ApplicationsSlurry transport LinesAgitator assembliesImpellorsAsh and slurry PumpsShaftsExhaust fansOre processing tanksScrew conveyorsCyclonesPipe elbowsChemical compositionCoated AbrasivesCoated abrasives is a three component system consisting of abrasive grains adhering to the semi-flex backing like paper, cloth, fibre, plastic film etc with the help of resin or glue boCoated Abrasive is manufactured as rolls which is then converted into different foams like belts, disc, flap disc, flap wheel & spindle mop, sheet & non- woven products.CUMI specialize in manufacturing of a complete line of closed sized abrasive grains in various shapes, sizes and densities, etc. to perfectly fit any coated abrasive application and working conditionCUMI Sharp Grains for coated abrasives are angular, sharp edged with high capillarity for instant adhesion to resin or glue bonds and electrostatic characteristics carefully monitored to provide consistent and reliable grain projection. The High hardness (mohs hardness 9) and toughness of the CUMI Sharp grains combined with the multi-fracturing property , self sharpening characteristics and cooler cutting characteristics of the grains makes it an ideal raw material for the manufacturing of coated abrasives for any application. Typical ApplicationsCoated abrasives are used by hand or on machines, applications are extremely varied, at home and in industry for:Fine finishes: hand sanding or polishing of wooden cabinets, car bodies primers, metals.

High precision operations: Optical lens polishing, magnetic head super-finishing. Medium stock removal with portable or fixed machines: Floor sanding, disc grinding of metal, endless belts grinding of wood, metal, glass. Heavy stock removal with wide (up to 3 m) belts on high power machines to grind stainless steel sheets or coils or to calibrate plywood or chipboard panels. Refractories

A Refractory is a material which can withstand high temperature and at the same time retains its structure and are physically & chemically stable. Fused minerals due to their ability to withstand high temperature along with high resistance to corrosion, abrasion & impact , is used for the manufacturing of Refractories material (fired & monolithic) owing to the fact that Refractories materials are in continuous exposure to the combination of heat, corrosion, abrasion and impact under working condition.

Cumi Heat fused minerals grains possesses high purity with uniform composition and are chemically & physically stable at high temperature. Also its high resistance to corrosion and chemical attack, low thermal expansion, high strength to withstand aggressive abrasion & impact, high thermal shock resistance and adequate thermal conductivity makes it an ideal raw material for the manufacturing of refractories (fired & monolithic). Typical Applications

Lining of Furnace, Kiln, Incinerators, Reactors for metal, ceramic, cement and chemical & petrochemical, glass, carbon black industries. Manufacture of crucibles Kiln furniture Ceramic Filter for metal purification Tap hole mass Ramming massMetallurgical

Iron & Steel melting and casting industries usually referred as metallurgical industries uses Silicon carbide in the form of briquette or pellets or granule as a alloying agent for silicon & carbon or as reducing agent for the removal of excess oxygen. CUMI-met is a special grade of metallurgical silicon carbide with 88% purity with very low sulphur & nitrogen content in the form of pellets is a prime source of silicon and carbon to the melt. It also improves the inoculating action thereby refining the distribution of graphite flakes or spheroidal graphite in the micro-structure offering more number of nucleation site. Apart from that, it removes the excess oxygen in the melt thereby reducing the pin hole porosity of the casting, improving the life of the furnace wall and by the exothermic nature of the oxidation reaction provides extra fluidity to the melt. These characteristics of CUMI-met makes it an ideal alloying agent and reducing agent for metallurgical operation.

Typical Applications Automotive, pump & other industrial components made of S.G. Iron or gray iron. As reducing agent in steel plants. BlastingAbrasive blasting is an mechanical operation of cleaning or preparing a surface by forcibly propelling a stream of abrasive material on the surface using a compressed gas (typically air) or pressurized liquid (typically water) as a propellant. Abrasive grains used for the blasting operation ranges from coarse grits to micron sized particle depending upon the operation and desired results. CUMI specialize in manufacturing of a complete line of closed sized abrasive grains in various shapes, sizes and densities, etc. to perfectly fit any blasting operation and working condition.CUMI Sharp range of abrasive grains due to it high hardness, toughness and strength combined with sharp edged grains, self sharpening characteristics and high resistant to mechanical wear and tear increases the mechanical effciency to surface cleaning and surface preparation and increases the recyclability of the grains thereby reducing the dust generation during dry blasting to minimal. These characteristics of the CUMI sharp grains along with its excellent chemical inertness makes it an ideal blasting media for all blasting operations. Typical Application

Valves casing cleaning Foundry industry for cleaning of casting. Textile industry for machine part finishing before plasma coating Cleansing of instrumental coating. Surface preparation before electroplating Cleaning of automotive part before painting Etching surface before metal spraying Production of opaque glasses Pressure blasting of granites and marble for engraving purpose. Turbine blade blasting Nonstick cookware blasting prior to teflon coating For Heat treatment casting.Rice Polishing

Production of white rice involves the milling of the rice seed to remove the chaff which produces brown rice, followed by further finishing to remove the bran i.e. the rest of husk, thereby producing white rice. The milling is done is a roller machine which consists of revolving cylindrical stone coated with a paste of abrasive mineral and sorel cement (Mg(OH)2 and MgCl2) in a proportionate amount of water. The brown rice is polished by the rubbing action between the abrasive roller and the leather pad. The finished rice can be recycled into the process depending upon the desired quality of the rice.

CUMI Sharp grains are possesses high purity, which do not contaminate the rice, along with the high strength, high hardness and excellent wear resistance which provides uniform polishing of the rice,lower cycle time/ processing time and better life to the paste on the rolling stone. Investment CastingInvestment casting or lost-wax casting process is used for the manufacturing of net shape metal alloy components. Highly complex and critical components are manufactured to net shape by this process. The metal alloys may be ferrous, non-ferrous or super-alloys depending upon the criticality of the component application. The manufacturing process of the net shape components through investment casting involves the following steps.

CUMI Sharp White fused alumina grains are used in the shell building and the metal finishing part of the investment cast process.The high temperature withstanding capability under load of CUMI sharp white fused alumina combined with a very low thermal expansion co-efficient, excellent thermal shock resistant, high chemical inertness, high slag resistant, and non-wettability characteristic of white fused alumina to metal alloys makes it an ideal material for shell building for investment casting. Typical Applications

Aerospace components Complex automotive components Valves and pumps parts Industrial machinery components Scientific components Medical componentsAnti-SkidAnti -skid surfaces are used extensively in the high traffic area for industrial flooring and ship deck to provide traction and slip resistant. The anti-skid surface should be able to withstand heavy wear & stress and should be inert toward chemicals thereby reducing protecting the floor from wear & tear and chemical attack. The anti-skid surface for the industrial flooring and ship deck are usually made from a resin e.g. epoxy, PU etc mixed with a proportionate quantity of abrasive particles or filled on the concrete which provides the necessary friction to the traffic. Anti slip surfaces in the form of tapes with abrasive particles embedded on it are also used in the house hold and highway / road to provide necessary friction to the traffic. Also anti-skid tiles are embedded with abrasive grains to provide in the necessary slid/skid in the high traffic area. CUMI Sharp fused abrasive grains due to its high strength & toughness and high corrosion resistant provides high friction retarding slip/skid and makes it an ideal abrasive material for the manufacturing of anti-skid/anti-slip surface or tapes. Typical Applications

Anti-skid tape on the stairs at home Anti-skid tapes in bus Anti-skid tapes on road at zebra crossing Industrial Flooring Ship deck Anti-skid tiles for high traffic area in office or homes Laminates

Laminates made up of synthetic resin material or synthetic materials combined with natural and recycled ingredients, used for the flooring are made to look like natural products such as wood flooring or natural stone. Laminate flooring has a dense inner core and a layer glued on it. The decorative finishing to the laminate is provided by careful polishing of the outer layer by white fused alumina. CUMI Sharp micro grains due to it high purity which do not contaminate the surface along with precise size distribution, high strength & toughness and good friability at micro level removes the stock from the surface while polishing thereby providing a laminate surface with uniform & very low surface roughness and excellent finish. These characteristics of CUMI Sharp micro white fused alumina makes it an ideal finishing material for floor laminates.

Flooring at home and work Tabletops CountertopsHigh Abrasion Resistance CoatingHigh abrasion resistance coating is a composite system containing a high strength resin like epoxy and high abrasion resistance ceramic particles. The high abrasion resistance coating is in the form of a thixotropic paste which could be easily applied on the surface with a brush or in the form of a putty containing upto 70% solid mass. The high abrasion resistance coating is used as a protective coating or to repair worn areas in material handling equipment or components conveying abrasive materials. CUMI Sharp micro grains possesses high hardness (more than 9 Mohs), high toughness, excellent abrasion resistance, high resistance to chemical attack and corrosion. These characteristics of CUMI sharp grains makes it an ideal raw material for the manufacturing of High abrasion resistance coating. Typical Applications

Slurry transport Lines Agitator assemblies Impellors Ash and slurry Pumps Shafts Exhaust fans Ore processing tanks Screw conveyors Cyclones Pipe elbows Reducers Pulverisers etc.

Micro-Porous InsulationMicro-porous insulation is the advanced insulation technology which exhibits superior insulation characteristics. It is used in the application where the largest temperature drop is required through the thinnest possible cross-section with the lowest possible mass. The micro-porous insulation is highly porous and is mainly composed of inorganic oxide, primarily fumed silica (Approx - 75-80 %) micro sized particle and micro sized opacifier (Approx - 15-20%). Micro-porous insulation has the thermal conductivity lower than the still air in the range of 0.02 -0.04 W/mK at 200-800 0 C. The performance of the micro-porous insulation is based on the the ability of micro-porous insulation to block the three modes of heat transfer - Conduction, Convection and Radiation. The conduction heat transfer is reduced due to the very high porosity and low density of the micro-porous insulation. The size of the voids in the structure is smaller than the mean free path of the air molecule which reduces the convection heat transfer. And billions of micron sized opacifier particles distributed homogeneously in the silica matrix absorbs the radiant heat at high temperature and re-radiate or distributes the heat back to the system thereby reducing the heat loss due to radiation. CUMI offers micron sized silicon carbide particles in the size range of 2-5 microns which possesses high thermal conductivity with high emissivity which produces an excellent infrared radiation absorption and re-radiation characteristics. These characteristics of our micron silicon carbide makes it an ideal opacifier. Typical Applications

Vacuum Insulation panel which is used for house insulation Radiant heater insulation Fire protection equipment. Back up insulation in high temperature furnaces - Steel, Glass, Ceramic, Aluminum. Aluminum Launders Transfer ladle, Torpendo ladle and Tundish insulation. Chimney and pipe insulationlThermal Spray

Thermal spray coating consists of powers (ceramic, metallic, inter metallic) of specific grain size which are heated to its melting point by means of the high temperature arc and propelled to the surface of the work piece by means of a gas thereby creating a uniform coating on the substrate. Thermal Spray coating enhances, protects and alter the surface properties of components thereby creating thermal barriers, wear resistance, chemical resistance ,corrosion resistance or electrical enhancement coating. CUMI offers a variety of high quality thermal spray coating based on alumina, titania and chromia for various applications.

Typical Applications Textile machine parts Electronic components Automotive sub assemblies Medical instruments Jet engines etcBrake LiningBrake lining are mainly composed of a heat resistant and strong fiber which are relatively soft yet tough with high co-efficient of dynamic friction mounted to a solid backing using high temperature adhesive or rivet. In order to increase the dynamic co-efficient of friction and decrease the wear of the brake lining under high temperature produced during braking, ceramic grains are added to the fiber.CUMI Sharp micro grains with stringent particle size distribution possesses high toughness & hardness, excellent abrasion and wear resistant and physical & chemical stability at high temperature which makes it an ideal additive to the brake lining for higher dynamic co-efficient of friction, longer life and hence better performance of the brake lining.

Typical Applications Automotive brake Rail brakes Air-craft brakes Friction material for industrial machineries LappingLapping is a precision machining technique used to produce flatness, parallelism, thickness or surface finishing to an extremely demanding tolerance. Lapping involves a process in which two surfaces are rubbed together with a fine abrasive grains, in the loose dry form or suspended in a liquid carrier, between then to remove the stock from a surface. Cumi-sharp micro abrasive grains due to its high hardness and good friability at micro level along with stringent particle size distribution makes it an ideal abrasive grains for the faster and uniform removal of the stock from the surface thereby providing better surface finishes during lapping.

"A" is the work. "B" is the tool

Typical Applications Auto components Compressor parts Pump parts Advanced ceramic components Optical lens Optical electronics devices

Cosmetics

CUMISHEEN is biologically treated and refined alumina product. It is used in the cosmetic industry in products such as body and facial scrub, special creames, soaps, dermabrasion, cleansing lotions, It is pure white in colour with high alumina content (98%-99%). Free from any contamination mainly iron. Biologically and chemically inert. The microscopic structure reveals sharp edges which will help in abrading process. It is available in various sizes but most widely used sizes are 100 or 110 microns.Dental Blasting

Odoblastae is CUMI's unique and special form of grain manufactured in our state-of-the-art technology plant. Ideal for blasting of substrates in the preparation of teeth crowns. Features and Benefits

Extremely pure and inert Excellent cleaning and roughening effects Remarkable surface penetration and uniformity Excellent durability and a blocky crystal structure, rendering it most suitable for blasting Unique potential to increase surface area Prevents formation of micro-cracks in ceramic coating that might lead to crown fracture.Wire SawingWire sawing is a method for slicing and cutting silicon wafers. In wire sawing, a taut steel wire is run through an abrasive slurry of silicon carbide which acts as the cutting agent between the work piece and the wire. Wire sawing is commonly used in the silicon wafer production CUMISLICE - Premium micro grit for slicing silicon wafers is classified to narrow customized size distributions, offers the benefits of predictable performance in wafer slicing.... lot after lot.

This product is critically designed and tailored to yield : Desired wafer thickness Close TTV distribution Superior surface quality Low kerf loss Production capacity:Production capacity of the Plant 1 is 1000 tons per month and the Plant 2 is 750 tons per month

Packing: 25 kg multiply paper bags of 1000 kg palletized .Other packaging types on request

Work shifts:The company works in three shifts; 8am-4pm, 4pm-12am, and 12am-8am.

ROLE AND RESPONSIBIITY OF PRODUCION MANAGER Responsible for managing the production staff. Monitoring the day today production. Ensuring the timely dispatch of sales vehicles. Ensuring quality of the product. Training newcomers on the process. Taking trials of bread and bun. Preparing the production report on the day today basis.

SLOGANS

Improve standard of living by increasing productivity Wear safety gadgets in plant

4.1.b.QUALITY CONTROL DEPARTMENT Quality Assurance Department Structure

SENIOR MANAGER QA DM QASUPERVISOR JR SUPERVISORTEAM LEADERCUMI is renowned for its quality, not only in electro minerals but also in all their products such as abrasives and ceramics. As the raw materials for producing abrasives and ceramics are electrominerals, whose quality is very important. Quality policy of CUMI:We shall proactively meet customer expectation by providing quality products and services.

This will be achieved through: Total commitment of the management in implementing an effective quality management system. Continual technological development to fulfill changing needs of the customer. Total employee involvement for continuous improvement. Enhancing employee competence through education and training. Building mutually beneficial relationship with suppliers. Responsibility of quality department is checking the quality of the raw material because; the quality of the final product is primarily depending on the raw material.Quality is checked during- Raw material is taken for the Production. Mixing the raw materials. Furnacing Pig yard Crushing. Before packing the final product. There are two laboratories in CUMI for checking the quality, they are:- Chemical lab Physical lab In the chemical lab, they check the chemical properties such as gravity, percentage of weight of each metal in the product, fusion level, and combination of the product etc.In the physical lab, they check the free iron, HM (hand magnet), bulk density and size analysis.Final checking of the product is done in the bin. Quality analyzer checks the each bin and put a bin card. If the bin card colour is green, that bin contains the product is accepted and that bin goes to the packing section. If the bin card colour is red, that bin contains the product is treated as rejected. If the bin card colour is yellow, they reserve that bin contains the product for recycling.They follow Total Quality Management (TQM) system for sustaining and improving the quality of the products. The TQM values followed by the company are: Excellence in all aspects of business. Customer first attitude. Total involvement. Emphasis on leadership. Internal customer support. Continuous improvement. Improving quality of life of the employee and society. On time delivery. CUMI maintain their TQM through various activities. These are: 5 S Policy: CUMI adopted 5s policy for improving the quality of product and work.1)Sorting. Segregate required usable re-workable and absolute item. Dispose off the unwanted items. Clear off walkways2) Systematizing Use labels, colour codes for easy identification Use index doe files, records, drawings etc to facilitate retrieve ability Plan storage with accessibility3) Shining Inspect the supply lines, scrap yards and gardens. Clear up workplace, machine and tools after use Identify root cause of loud noise, vibration, head noise, vibration heat buildup in equipment and take remedial action

4)Standardizing Establish checking procedure Create visual control Device ways and means and means to expose problems

5)Self discipline Develop action plan for maintaining the self standards Give unambiguous advice.Quality auditA systematic and independent examination to determine whether quality activities and related result comply with planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve objectives.The company has been following KAIZEN Japanese scheme for continuous improvement in all activities of the business. This scheme means that the quality of the products or services is determined by its uses, efficiency, value for the money, comparison with other products and some other criteria etc. These parameters are varying depending upon the situations. So there is no proper measure to determine the quality of products and services.ISO Certification : CUMI has got ISO 9001-2008 series certification for quality assurance in design / development, production installation and servicing

RESPONSIBLITIES OF QUALITY DEPARTMENT

Finished goods audit. Packing material checking. Raw material analysis. Finished goods analysis. Online checking of dividing weight Online checking of finished product weight Monitoring the hygiene and sanitation Monitoring workers hygiene Documenting the reports Damage product checking Production report making Daily production report

SLOGANS Its an attitude to achieve perfection Our job # 1Customer Satisfaction

4.1.c. MAINTENANCE & ENGINEERING DEPARTMENT Maintenance and Engineering Services Department, operates under certain responsibilities from which it derives its functions and commitments. One responsibility is to ensure machine availability to ensure production as per monthly plan. This is accomplished by ensuring minimum down time of critical and support equipment maintaining high MTBF and Low MTTR, minimize machine downtime by adhering to preventive maintenance as per plan Another key responsibility is to ensure availability and quality of utility requirements electricity, water and roads which are essential for ensuring continued and smooth operations of the unit. All reports regarding the plant performance on utilities shall be maintained and corresponding bills shall be verified by this department.The department shall ensure required availability of all spares, consumables, wear parts for critical process machinery as well as support equipment and utility facilities Maintenance Work shop: - The maintenance work shop has the facilities for assembly of rotatable, drilling and grinding and welding.Department ObjectivesEnsure availability of machinery as per business plan Ensure adherence to performance parameter fixed in business planReduce maintenance cost Adherence to preventive maintenance plan Initiate corrective and preventive actionEnsure availability , quality of plant utilities Ensure safe disposal of waste Ensure good housekeeping. MAINTENANCE DEPARTMENT CHART

Sr. Manager-Engineering and Maintenance

Dy. Manager- Engineering Services

TraineesOperators (Mechanical)Operators (Electrical)Supervisor

Responsibilities of Maintenance Department Ensuring plant availability.Planning and adherence to preventive maintenance schedule.Ensuring machine parameters for optimum operation are maintained.Prevent deterioration of machinery condition due to non-achievement of specified parameters.Execution of annual maintenance contracts. Preventive MaintenanceAs we know the famous proverb, Prevention is better than cure.CUMI believes in this proverb. As per this, every Sunday maintenance operatives will inspect and do the maintenance work in the whole plant .They identify some critical machines and these machines are periodically inspected Prepare list of all equipment, identify Critical equipment Critical machinery can be identified as those machines whose improper functioning will lead to immediate stoppage of the production module Master list preventive maintenance jobs to be prepared from equipment manuals and based upon inputs from previous history break downs. Safe work permits and checklists for PM execution shall be issued and verified by maintenance in charges . A preventive maintenance planner shall be prepared based on the above.

Breakdown Maintenance:If any break down occurs, the concerned department will sent a complaint to the maintenance department with the help of personal computer (ERP System Ramco No 3). Then the maintenance Dept. head issues a work order depending on the manpower available. They will try to rectify the root cause of the break down and bring the machine to the production process

DOCUMENTS used Master list of equipments List of critical equipment List of machine manuals and equipments manuals Annual maintenance Maintenance schedule Preventive maintenance check list Safe work permitsUse of Personal Protective Equipments (PPEs):PPEs are one of the major factors to tackle many problems. The effective utilization of PPEs wherever required minimizes injuries. The company has adopted a strategy regarding its usage. The management has warned the concerned employees about the consequences of not using the PPEs. It also considers taking disciplinary action against employees failing to use them at his work place. The important PPEs provided are: Helmets Masks Gloves Ear plugs Safety shoesSlogans Energy conservation is the foundation of the energy independence Make every day , a safe day Wear safety belts when working at a height Look out power before starting maintenance

4.2.HUMAN RESOURCE DEPARTMENT

HR Department Hierarchy

GM

HR MANAGER

DY HR MANAGER

HR EXECUTIVE

STAFF

Human Resource DepartmentHuman resource has always been one of the focus points in business strategy. HR strategy is carefully linked to the vision, mission and overall business strategy of the company. In CUMI , the HR department is responsible for putting together the HR plan based on corporate plan. It is responsible for recruitment, selection of employees, transfers, payroll processing, canteen, and legal proceedings.Human Resource Planning is done with the 3+1+3 business plan (3-past 3 years performance, 1- current year performance,3-forecast of future 3 years performance). The company evaluates the HR requirements estimated by a series of analysis. The basic objective of this department is effective utilization of Human Resource, desirable working relationship among all employees and maximum individual development. The most appreciating feature of CUMI is its profound flexibility in communication between any subordinate and superior. This contributes to a friendlier cooperating environment. CUMI has a group of very committed employees. It has strength of 44 permanent employees, 21 management staff, 65 non staff, 21 temporary trainees and 16 contractors. HUMAN RESOURCE STRATEGYCUMIS business strategy is evolved from Domestic and global market trends, Economic growth competitor analysis and customer Industries growth plan .HR strategy is linked to the the business strategy and facilities organization to achieve by building people capabilities CUMIs concern for people has been driving force for the growth of the organization over the years attribute last 5 decades. The sustained growth over the past several years attributed to the knowledge, skills of the people and technology. HR has been one of the focus points in the business strategy.The HR strategy is carefully linked to the vision, mission and overall business strategy of the company HR Values Concern for people Integrity Customer orientation Continuous improvement Executive excellence

HR Principles Whether workers or management staff, employees are employees. They are not different bloc, but two faces of the same coin. Employee Unions are treated with respect and are partners in the progress. Harmony and peace cannot be at the cost of dilution of organization ethos. Fairness and firmness will govern all employee relations. Communication and dialogue would be the essence of managing relationships. A proactive approach and a state of mental and physical preparedness would help in managing unpleasant issues. HR Functions Recruitment & selection. Preparing appointment letters. Arranging training and development programs for the employees. Keeping all statutory obligations. Collecting data from all other factories to enable them prepare details for long term negotiation. Informing the concerned department about the change of factory rules & other related acts. Maintaining strict discipline. Making daily attendance of the employees, pay and overtime, this department also does all correspondence relating to the ESI and PF. Running of canteen. Recruitment & SelectionRecruitment and selection is based on integrity, competency and the ability to work in a team. Company takes value fit individuals with group into consideration. Individuals are placed under 1 year probation in which the superior accesses his/her abilities, teamwork, and performance in pressure situations. But successful completion of probation does not imply on assurance for permanent employment. Based on experience and qualification selection of managers is done at the Head office, Chennai. The management gets people through campus recruitments, personal references etc. The selection procedure consists of:

Aptitude Test

Medical CheckupGroup DiscussionFinal Interview

Personal Interview

Line managers are expected to prepare job description and job specification in respect of job to be filled, HR department is expected to oversee and ensure proper compliance with statutory and organizational requirement and policies. The recruitment process is a three tier method-direct, indirect and third party. The sources of recruitment included both internal & external. The internal source includes transfer and promotion, which is more preferred by the company. The management chooses external source like campus recruitments, personal references etc. InductionThe workers are recruited and selected is given an individual program; introducing them to the plant, their work and to the concerned department. For managerial personnel, the induction method used is apprenticeship-training method; immediate supervisor trains employees. For workers shop floor training is given. There is three level of induction at CUMI:- Corporate induction: mainly for corporate personnel. Given in Head Office (Chennai). Induction across unit: Given for management staffs across the units in order to know the various dynamics exist in the group. Department/functional unit induction: This is given for both management and non-management staffs; each department managers or supervisors give this. Training and DevelopmentThe need for training is determined by identifying the gap between present performance of an employee and the desired performance. In CUMI, it is done on the basis of skill matrix. Training needs identification procedure:

Business Plan/ Long Term Strategy

Policy Deployment

Skill matrix for operatives/ Competency requirement for managers

Competency gap

Training need identification

Skill Matrix:The objective of the skill matrix is to have a scientific analysis of skill level. The aim is that technology changes fast and new technology demands new skill. Therefore, this helps employees to progress his career plan. Skill matrix measures five aspects of an individual/personal characteristics, discipline, skill work performance and participation in management. The skill matrix is to find out the attitude of individual towards work and the skill of the person to perform. It is to identify scientifically the skill level existing in the organization and to develop the skill levels pattern to meet the business requirements. In skill matrix, the department head and the employee are rated based on certain parameters. In rating the performance, it is classified into three -good performance, average performance and poor performance. Training for Management staffs Two functional and one Personal Effectiveness Training Program as a part of corporate initiative. Specific program against the requirement- Division/unit HR. Advanced TQM orientation Negotiation skill. Out bound training. SHE programs.Training for non-management staffs Behavioral training Skill improvement training Multi tasking Process orientation Energy management conservation TQM orientation

The funded needed for training both management and non management staffs is been provided from the head office .the evaluation of training through an ERP software called RAMCO. The performance of the employees evaluated every month through this software. Based on the performance level they can know the effectiveness of the training programs

CUMIs policy on HRPCUMI will recruit based on integrity , competency and the ablility to work in a team. We would also endeavour to select individuals with leadership potentials, customer orientation and quality focus. Above all, we also take the value-fit of the individual with the group in to consideration.POLICY AND CARRIER PLANNING:CUMI believes that its our responsibility to develop employees to their potential so that the future challenges could me met with existing talentDEVELOPMENT PLANThe 3 Cs of retention of talent at CUMI Challenge Compensate Competency Areas-operational /cultural excellence

Performance management system

The performance management system is based on the score card.

The balance score card is the culmination of the business plan and is the complete strategic map which identifies the strategic indicators and thrust areas of the business. This balance score card is the authentic document approved by the Murugappa Corporate Board. Based on the approved score card the functional score card are evolved.

The monthly plans are then evolved from the above. These plans are reviewed on a monthly basis against the plan.

The feedback and the learnings from the monthly reviews and course corrections are incorporated.

The Performance Management System is on line with Policy Deployment.

The system is designed to capture the objectives and measures in the policy deployment table drawn up for the current year.

The objectives and measures are to be clear cut, specific and quantifiable.

The appraiser and the appraise will jointly discuss and arrive at the best regrouping possible of the objectives.

In the discussions, the appraiser and the appraise agree on a action plans including resources and support. This is summarized and signed off by both the appraiser & the appraise.

A review mechanism is also built in the system to ensure frequent monitoring of n and course correction, if necessary.

The review calendar is drawn up to regularly monitor the progress of the objectives and provide resources if any on the part of the appraisee

Control charts are maintained at agreed frequency and reviewed.

COMPENSATIONCUMI believes that compensation should be based on the individual performance is classified through quantifiable/objective. The performance rating will be: Exceptional contribution Significant contribution Good contribution Not meeting the requirement Not suitablePERFORMANCE LINKED INCENTIVES:The incentive, a part of the compensation and linked to balance Score Card helped CUMI, iniative process of : Rewarding stretch effort and risk taking Encouraging inter functional and organizational perspective Providing trust to sustainable processes Giving inputs to innovation and learningIncentives are an important and integral part of the compensation package. It would be based on the achievement of the company/ SBU Score Card, with age specification for each perspectiveREWARDS AND RECOGNITIONCUMI has evolved a rewards and recognition scheme.Kaizen Scheme: The objective of the scheme is to encourage and recognize management staff for their participation and contribution in work /method/productivity improvement and cost reduction exercises which benefit the organization.This scheme is applicable to all management staffs up to MG6 including management trainee category of CUMI for their individual contribution.Suggestion Scheme: The objective of the suggestion scheme is to encourage and recognize employee for their participation and contribution in work/method/productivity improvement and cost reduction exercises which benefit the organization . This scheme is applicable to all operatives of CUMI for their individual contribution

AREAS OF SUGGESTIONS:

To improve production or productivity New methods or devices improvement for simplification To improve quality of product or maintenance of services To improve general; upkeep and cleanliness To eliminate wasteful practices To eliminate pilferage of materials To improve process To reduce cost Performance appraisalThe methods used in CUMI are supervisory rating and self-rating. Performance appraisal for the managers is called Policy Deployment. This system is based on factors like business result, quality systems, total employee involvement, waste elimination and customer satisfaction etc. In this system, the objectives of the GM will be the measure of his next subordinate and this flow down accordingly until the final objective is attained. The Performance Management System is based on the Balance Score Card .The Balance scorecard is the culmination of the Business Plan and is the complete strategic indicators and thrust areas of business. Appraisal for staffs consists of knowledge of methods and procedures, quality of work, attendance and punctuality, resourcefulness, good manners, team spirit etc. Promotion PolicySuitability and merit with number of service years are the criteria for promotion. Promotion policy has been drawn taking into consideration of performance and seniority.. Workers participation in managementCUMI takes suggestions from employees mainly relating to the cost reduction. The better suggestions will be considered by the management and rewarded properly. Salary paymentCUMI paying salary to employees through SBI Bank on 7th of every month .

Welfare Measures Welfare Fund: Employees will contribute Rs.39 per month to the welfare fund. If the employee is sick for more than two month, Rs.1400 will be granted. In case of serious accidents or death, entire amount will be borne by the company. Cash award will be given to the children of employees who secure highest marks in the SSLC exam. Medical Scheme: Staffs who are not under the E.S.I scheme can avail this scheme. The scheme is to provide financial assistant to the employees who have crossed the ESI.Act and is not entitled for any other benefit from any other scheme. The ceiling amount of this scheme is Rs.25000, amount will be granted only for inpatient treatment. For out patient treatment amount within Rs.1800 will be reimbursed. Three other members in the family can avail this scheme. Recreation Club: CUMI has a library, there is a wide collection of novels and other books, Television, newspapers ,company magazine (CONNECT) etc. Club conducts sports and games. The club also conducts family tour programmes every year. The club also celebrates annual day (which will be Dec/Jan) and Onam festival. Canteen: CUMI has a subsidized canteen. Monthly Rs.18 is deducted from every employee towards canteen. The company appoints suppliers and they are nine in number. Purchase regarding the canteen is done by the company itself. Dispensary: First aid is given in case some accidents happen. A register is maintained in the dispensary and some of the medicines are stocked. There is no permanent doctor, but only a visiting doctor who comes every three days in a week and one compounder. Periodical medical check up is conducted in the dispensary and the employees are given an amount as medical allowance. The employees are insured under a group insurance scheme. Uniform: Company provides uniform and foot wear to the employees every year. For those who work in plants three pairs of uniforms and a pair of shoes will be given once in a year. Those who work in sledging division in every 4 month a pair of dress and shoes will be given. The company also pays Rs.110 towards stitching charge. Both the management and operative staffs in CUMI has the same uniform. Birthday celebration: The Company celebrates the birthday of their employees. Company gives a pack of sweet and a birthday cards to the concern employee. Allowances: Washing Allowance Shift Allowance Travel Allowance Educational Allowance Attendance Bonus House rent Allowance Feeding allowance Festival Allowance. Grievance handlingCompany policy:Redressal of day-to-day grievances can motivate employees to be more effective. Grievances should be settled reasonably, swiftly and transparently. Welfare benefits:Welfare fund:Management agrees to contribute towards employees welfare fund at the rate of Rs.15.00 20.00 month with effect from 1st September, 2006.Advances:Management agrees to increase advance from Rs.5750.00 to Rs.7500.00 per annum, which is to be paid in three installments of Rs.6000, Rs.3500 and Rs.1000 as Onam advances and school advances and special advance respectively.

Safety shoes:Additional one pair of safety shoes per year to plant operatives considering safety requirements. Leaves:(a) Earned leave - strictly as per factory act(b) Casual leave - Maximum 13 days per annum(c) Medical leave - Maximum 12 days per annum

Hospitalization schemes:Scheme for employees, spouse children. Introduced for those employees who are out of purview ESI scheme consequent to exceeding the prescribed salary limit of Rs.10, 000Tour subsidy:The annual tour subsidy is revised from 5,500 to 10,500. Terms and conditions unchanged.Wages and allowance:Applicable to all permanent employees with effect from 1st September, 2006Dearness allowance:DA is revised from Rs.4.35 to Rs.4.78 per point over and above 83 points of the consumer price index (1970=100) published by the Director of Statistics, Kerala for Ernakulam.House rent allowance:The house rent assistance is revised from Rs.390.00 to Rs.554.00 per month

Conveyance allowance:The conveyance allowance is revised from Rs.355.75 to Rs.523.75 per month.

Night shift allowance:Revised from Rs.10.00 to Rs.15.52 per shift for those who work between 4 pm and 12 midnight shift.Revised from Rs.13.00 to Rs.19.88 per shift for those who work between 12 midnight and 8.00 am

Attendance bonus:An amount of Rs.50.00 per month will be paid to eligible employees in addition to the present practice of paying one day basic pay as attendanceIncentives:Normal maximum amount earned for good performance per month is Rs.660. variable pay base on 3 criteria namely process criteria, company criteria and individual criteria.Overtime:Overtime allowance is given to the workers on the basis of mass hours.Overtime=Basic+ DA *attendance hours/240 . Trade unions Carborundum Labour Union Carborundum Employees Union

Industrial relationIn CUMI, the HR department plays a vital role in maintaining harmonious industrial relations. A very good relationship exists between the management and the employees. Since1987, no strike were reported. Inter as well as intra union rivalry is very low.

Slogans Energy is the power that drives every human being to triumph If you cannot measure it , you can not improve it

4.3. ACCOUNTS DEPARTMENT

ACCOUNT MANAGER

ASSIST ACCOUNT

STORE SUPERVISOR

The main finance department is the main branch at Eadappally. It prepares trail balance, MIS and audit report. The financial department uses Ramco Virtil Works (RVW). The accounts department does book keeping, accounting and reporting functions. It undertakes the work of pay sheet preparation of staffs and workers, payment of bills, vouchers and other financial transactions. They also prepare financial reports of the company. All the major financial decisions are taken at corporate office (chennai). This department also keeps income and expenditure accounts, which includes the sale and disposal visible cost, contribution, fixed overheads, operating and non-operating income etc.The corporate office provides funds for working capital requirements. Departmental budgeting is also the function of accounts department.Duties of accounts assistant is cash transactions, accounts payable, payment of tax. Trial balance, capital expenditure are maintained by supervisor. Responsibilities of the manager a/c are making monthly report, auditing and fund management etc. AGM a/c has the full responsibilities of accounts department.Major functions of this department are: Keeping depreciation account. Preparation of income and expenditure account Preparation of budget for three years. Departmental budgeting Prepare management reports Coordinating the auditing functions FIFO method used to dispatch stock Spare part planning undertaken Item wise accounting and control of various inventory items Responsible for purchase of mechanical spare

Capital structure:CUMI capital structure consists of equity share capital, preference share capital, reserve and surpluses, long-term loan, other loan and deferred tax liability. Sources of funds:CUMIs main source of fund is from the corporate office (Chennai).Issuing of share and short-term loans from the companys consortium of banks like State Bank of India are the other source of funds. Earnings from the operation:Last year companys operating profit and profit before interest and tax (PBIT) were 13.93 crore. In addition, the net profit was 5.55 crore. Future investment proposals:CUMIs investment proposal is 1500 lakhs for capital planning. It includes 100 lakhs for mine purchasing, 500 lakhs for the application of tilled furnace, 500 lakhs for the large-scale production of semi friable products and 400lakhs for miscellaneous.Every 3rd of the month cash flow statement, Flash Report consisting of sales contribution, contribution percentage, fixed expenditures, Profit before Interest and Tax (PBIT) and 8th of every month Management Information System of profitability and Capex progress, Balance Sheet statements are sent to Corporate Office. Accounting policies:The company policy has a special accounting policy, which is the basis of the financial statement. It is in accordance with the accounting standards issued by the Institute of Charted Accounts of India. Deferred revenue expenditure:Preliminary expenses are amortized over a period of 5 years. Revenue recognition:Both income and expenditure are recognized on accrual basis. At the end of the accounting period, works in progress are recognized as revenue based on proportionate completion period. Foreign currency transaction:Transactions of foreign currency are recorded at the rates of exchange prevailing on the date of transactions and the exchange loss or gain is recorded within the profit and loss account. Depreciation:Earlier days Company adopted Written down Value Method. However, the management felt that straight-line method would be more appropriate. So from 2000 onwards they adopted Straight Line Method. Investment:It is meant to be held for long term is accounted at cost. Fixed assets:Fixed assets are stated at a cost of acquisition and subsequent improvement thereto inclusive of taxes, dues, freight, and other incidental expenses related to acquisition, improvement and installation.

Borrowing costs:Borrowing costs are capitalized as part of qualified fixed assets when it is possible that they will result in future economic benefits.

Inventories:Inventories are valued at lower of cost and net realizable value. Cost includes all direct costs and applicable production overheads to bring the goods to the present location and condition. Excise duty on the finished goods is added to the cost.The company also holds a special Murugappa economic value added method for better operating profit, faster sales growth reduction in incremental fixed capital, reduction in effective tax rate and lower WACC.

Retirement Benefits:The contribution of gratuity fund is based on an annual valuation and to the superannuation is funded to LIC of India. Capital structure:CUMI capital structure consists of equity share capital, preference share capital, reserves and surplus, long-term loan, other loan and deferred tax liability.

STORE

The main function of store is procuring the raw materials and other required materials for the company. This department invites quotation from various suppliers and make a vendors list on the basis of some criteria.This department also rates the each vendor based on their previous experience, quality of the product, delivery speed and price, which is called vendor rating.

This department issues materials as per the order given by the concerned department through material requisition. If the required material is out of stock, the commercial department head invites quotations from the vendors. The best quotation is chosen and the purchase order is placed. On the arrival of the material, it is checked and issued to the concerned department.

Purchase request Purchase procedure:

Authorization

Quotation

Takes the least quotation

Planning Purchase order

Material collection

Inspection of material

Payment for the materialPurchase request: If the departments require any materials, they will place a material requisition to the commercial department. If the required material is not in the store, the store manager places a purchase requisition (PR) to the plant manager.Authorization: Purchase requisition is checked by the plant manager and approved for the quotation.Quotation: Department invites the quotations from the vendors.

Takes the least quotations: department selects the least quotationsPurchase order (PO): department takes the least quotations with the consideration of their previous experience, quality of the product and delivery speed then placing a purchase order to the appropriate vendor.Material collection: When the materials are reached to the company, the store supervisor inspects the materials and then issued to the concerned department.

Store:The main raw material are quartz and raw petroleum coke supplied mainly by Tamil nadu and Gujarat . The company is considering purchase from other sources also. Every item is attached with a Bin Card, which has UNIQUE CODE NUMBER consisting of 14 digits. The card has description of the item, date of receipt, date of supply, balance, signature, remarks and stock number.

4.4. SHIPPING DEPARTMENT

GENERAL MANAGERJUNIOR OFFICER SHIPPINGTRAINEES SENIOR MANAGER SHIPPINGArrangement of movement of material. Marketing material is not undertaken here. This department also maintain stock of finished goods.3Types of dispatches Captives dispatch(Branch Transfer about 50% ) Domestic Sale(with India) Exports

Functions of shipping department Customer interaction, customer visits, quotation preparation and submission undertaken by department Order receipt and order acknowledgement onwards entails responsibility of shipping department Transporters are employed as they absorb liability in relation to vehicles and drivers Invoice, Gate pass, Declaration in 8f and Lorry receipt are to be maintained for domestic sale The transportation of domestic and captive sales is arranged by shipping department as per the customer authorized transporter For export CUMI arranges containers for house stuffing at Koratty plant as per the supervision of central Excise officer Stuffing report, Commercial invoice are document maintained for export.This department is responsible for the packaging of finished products. They start dispatching only after getting the green card from the quality control department. This department has also the responsibility to determine the number of casual workers required for the loading and unloading function. However there is a forklift to do major part of the loading work. This department also in charge of preparing invoice.Then it is packed in various quantities. In every shift 210 bags weighing 50 kilograms (domestic purpose) and 25 kilograms (export purpose) is packed. The bags are placed in pallet and lifted by Crain and taken to separate area from where trucks carry it to destinations.Main customers:The main customer industries of the CUMI are: Automobile industry. General metal cutting industry. Polishing of metal surfaces. Marine paints etc.

And the main customer companies are: Vishwa vishal. Mechans in UK. Milthon Indoflogates. Tata refractories. Branding:CUMI made its brand well known in the industry through continuous hard work and determination. This was possible because of the following reasons: Consistent high quality and reliability Fair pricing practices and transparency Relationship management Customized product variants Sales: Ninety percentage of the sale is done through direct orders from the customers and 10 percentages is from the dealers. Last year the companys domestic sale was around rupees 42.35 crore and the export sale was around rupees 9.5 core. Distribution:CUMI has no formal warehouse. They distribute their products directly to the consumers. Pricing strategy:In the domestic market, the company sells products at premium price. However, in the export market the company facing great competition from the Chinese products so in this market the company sells the products at economic price. Promotion: Promotion is done using the broachers, brand name, technical journals, and magazines, yellow pages of the internet and relationship management. Competition:Price and quality are the major competitive parameters in this industry. In the domestic market, company divides the entire market into four regions i.e. north, west, south and east. Each manager is being responsible for sales in the particular region. Last year the companys domestic sale was around 42.35 crore. In the Indian market, 35 % of the share is from CUMI. The main competitors of CUMI are Graind well Norton, Snam abrasives and Orient abrasive .In the export market, the company focuses on Germany, Philippines, Italy, Spain, Saudi Arabia, Japan, UAE, USA, and South Africa.

4.5 .SYSTEMS DEPARTMENT

GM

System Administrator

System OperativesSystem Operatives

System Operatives

The electro minerals division at Koratty is becoming more automated and technocracy. In this company, each department uses computer and is interconnected with the help of ERP (Enterprise Resource Planning) system.Ramco Virtual Works, a Chennai based software company provides ERP solution The company uses ERP because it provides: Integrated market information. Better handling of raw materials Better process control Reduce the time and cost To record the details of HR Integrated financial information The companys entire work, raw materials to marketing of the finished good is influenced by the ERP. If any department is facing any problems, that information will spread to the entire organization and then the concerned person or department will approach and solve that problem within the shortest period. These are done with the help of ERP.CUMI has internet, which is easily accessible. The type of net work is used by the company is Star Network. Office automation facilities are provided by Ramco Virtual Works. It is Chennai based and perform the activities like Payroll service, shipping and updates etc.Type of server Exchange server for mail transcription. Front end sever is based on Chennai and the back- end in CUMI, Edappally. Internet connectivity-Broad band-256kbs.Types of operating systems are used by the company is Windows 2003 and Windows professional. Security systems 1. E Scan - that act as an anti virus2. Fort guard - This blocks the unwanted websites.

URL : http://tvtnet/cumiweb/intranet/home/index.html

IP ADDRESS : 121.243.115.163

WEBSITEShttp://www.cumi-murugappa.com/www.cumi-emd.eu

CHAPTER 5

SWOT ANALYSIS

SWOT ANALYSISSTRENGTH The company provides value for money to the customers through their better quality and innovative products. The company treats customers with respect and concern The company has got strong R& D department, which have a policy that 6% of total sales every year should be from new products. R &D enables the company to have an edge over competitors in the new product development. The company has got professionally managed sales team with strong back up of reputed dealers. ISO 9001: 2008 certification also helps in obtaining some orders as well as maintaining the standard of the company. The greatest strength of the company comes from the employees who are efficient, energetic and sincere. Dynamic top level management backs them. There is no barrie