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MACHINE TOOLS Ltd, Kalamassery.
introduction
CENTRE FOR MBA, KANNUR UNIVERSITY 1
MACHINE TOOLS Ltd, Kalamassery.
INTRODUCTION
HMT Machine Tools Ltd., Kalamassery is among the five machine tool
manufacturing units of the subsidiary company HMT Machine Tools Ltd. The holding
company is HMT Ltd. Machine Tools production started in India in 1950 with the
commissioning of the first factory of HMT at Bangalore in collaboration with
OERLEKON Switzerland to catalyze industrial growth. Subsequently, the machine tools
market grew by leaps and bound and HMT stood and remained a leading Machine Tools
company till 2004.
One of the most challenging tasks of a business may be organizing the people
who perform its work. A business may begin with one person doing all the necessary
tasks. As the business becomes successful and grows, however, there is generally more
work, and more people are needed to perform various tasks. Through this division of
work, individuals can become specialists at a specific job. Because there are several
people often in different locations working toward a common objective, "there must be a
plan showing how the work will be organized. The plan for the systematic arrangement
of work is the organization structure. Organization structure is comprised of functions,
relationships, responsibilities, authorities, and communications of individuals within
each department. The typical depiction of structure is the organizational chart. The
organizational chart has been described as looking like a tree, with the roots representing
the president and the board of directors, while the branches symbolize the various
departments and the leaves depict the staff workers.
Organizational study helps a researcher to understand the working and policy
making activities of the company as a whole. It provides a researcher the practical
knowledge about the functioning and co-ordination of the activities of the various
departments.
OBJECTIVES OF THE STUDY
CENTRE FOR MBA, KANNUR UNIVERSITY 2
MACHINE TOOLS Ltd, Kalamassery.
i. To familiarize with overall performance of HMT MACHINE TOOLS LIMITED
Kalamassery
ii. To study different departments in the organization and their functioning.
iii. To enable and understand how the key business process are carried out in
organizations.
iv. Understanding the Organizational Work culture.
v. Understand how information is used in organization for decision making at
various levels.
vi. Finding the problems and limitations of the organization, if any and giving
appropriate suggestions to overcome the difficulties.
vii. To identify opportunities, threats, strengths, and weakness of the departments.
METHODOLOGY OF THE STUDY
I have conducted a descriptive type study by personally visiting the firm. The main
sources of information were primary data and secondary data.
Primary data: it was collected by personally interviewing and interacting with
the managers, officers, staff and workers of various departments of the company.
Secondary data: it was collected from various records like the annual reports of
the company, company brochure, company documents, company journal and the
website of the company.
SCOPE OF THE STUDY
CENTRE FOR MBA, KANNUR UNIVERSITY 3
MACHINE TOOLS Ltd, Kalamassery.
Organization study provides an opportunity to the management trainees to have
practical knowledge about the organizational activities in a company by conducting a
study there. He gets wide range of knowledge about the organizational structure,
functions of various department and officials. It enables him to do the SWOT analysis of
the company. Finally he can put forward suggestions for the improvement of the
company.
LIMITATIONS OF THE STUDY
The study has limited scope, as it aims an overall organizational study and not
an in-depth.
Information obtained is incomplete and inaccurate since the financial and
some other confidential information were not provided by the company.
The data collected from different personnel in the company contain biased
statements.
It was difficult for me to grasp the technical operations of the company
The study was only for limited days (30 days).
CENTRE FOR MBA, KANNUR UNIVERSITY 4
MACHINE TOOLS Ltd, Kalamassery.
INDUSTRY PROFILE
MACHINE TOOL INDUSTRY
CENTRE FOR MBA, KANNUR UNIVERSITY 5
MACHINE TOOLS Ltd, Kalamassery.
Being an integral sector, growth of the machine tool industry has an immense bearing on
the entire economy especially India’s manufacturing industry. It is even more crucial for
the development of countries strategic segments such as defense, railways, space and
atomic energy.
Machine tools production started in india in 1950 with the commissioning of the first
factory of HMT at Bangalore in collaboration with Oerlekon switzerland to catalyse
industrial growth. Subsequently, the machine tools market grew by leaps and bound and
HMT stood and remained a leading Machine tools company till 2004.
Efforts within the industry are now on to the better the features of the CNC
machine and provide the further value additions and lower and lower costs, to meet the
specific requirements and uses. Based on the perceptions of the current trend and
emerging demands CNC segment could be the drive of growth for the machine tool
industry in India.
2006 was the second successive year of exalting performance in the Indian
economy and its industry especially in manufacturing sector. It was clearly a year which
witnesses a high of 6.9% GDP growth making India one of the most progressive
countries in this part of the world. A remarkable 9.0% growth in Indian manufacturing
industry was lead because of an ecstatic performance by several key sectors, in particular
the automotive, the auto ancillary and customer durables. The three industry sectors
showed their true global process in 2006 with a great showing on the export front.
The machine tool industry had therefore, reasons enough to celebrate. Demand for
metal working machine tools scaled to new heights for Indian manufactures in the last
calendar year. Metal working machine tools output of the Indian industry worth Rs 10111
million, registered a phenomenal growth of 95.0% in January-December 2006, over the
previous year. Much of the increase happened in the wake of the spurt in demand in for
metal working machine tools from the automotive sector the auto ancillary industries,
defense, railways, job shops and small scale industry units.
In short a surge in order bookings was from all across the Indian manufacturing
sector. With growth and business optimism on a further swell in the Indian economy and
CENTRE FOR MBA, KANNUR UNIVERSITY 6
MACHINE TOOLS Ltd, Kalamassery.
the industry, the year 2007 is expected to result in a new peak for the Indian machine tool
industry both in the home and overseas. The Indian machine tool industry averaged more
than 35 per cent growth in 2004-05. Imports exceeded production in the year 2004 with
US$ 356 million worth machine tools being imported while the production was only US$
225 million. Machine Tools form 1 per cent of India's engineering industry and
contribute 0.3 per cent of total machinery exports.
The Indian machine tool industry currently consists of about 450 manufacturing
units of which approximately 33 per cent (150 units) fall under the organized category.
Further, ten major Indian companies constitute almost 70 per cent of the total production.
Approximately 75 per cent of the Indian machine tool producers have received the
coveted ISO certification. While the large organized players cater to India's heavy and
medium industries, the small scale sector meets the demand of ancillary and other units.
Bangalore is considered as the hub for the Indian Machine Tools industry. The city, for instance houses HMT Machine Tools Ltd and ACE Group, two Machine Tools giants that manufacture nearly 40% of the total industry’s output.
All the machine tools item attract a total import duty of 50.8% this include a basic
duty of 25%, additional duty of 16% and special additional duty of 4%. Top ten
destination of India’s export for machine tools are USA, Germany UAE, Yemen Arab
republic, Belgium, Luxembourg, Indonesia, china, Italy UK and Singapore. The early 80s
was a period of technological revolution with drastic changes in the use of heavy machine
tools. The integrated chip was invented in US, which helped in the computerized
manufacturing of heavy machines tools and equipment with high accuracy and precision.
The performance of seven of the top ten machine tool manufacturing countries of
the world sluggish during 2002, and the world output declined by 14% during this year.
The total production of 28 machine tool manufacturing countries during the year 2002,
valued at 31 billion US Dollars was the lowest of the last five years. Germany and Japan
were ranked first and second in machine tool production. Japan’s production fell by about
one-third, mainly due to its market corrosion I North America. Production in the USA
slipped by 33%
CENTRE FOR MBA, KANNUR UNIVERSITY 7
MACHINE TOOLS Ltd, Kalamassery.
How ever, Chinese machine tool industry’s production indicated a growth of 15%
during 2002, and was ranked 4th above the USA, in overall out put. Germany was the
leading exporter of machine tools, during the year, followed by Japan. Through both
these countries exported about 50% of their production most of the major producers,
including thee two, faced severe decline in exports. Marginal growth in export was
achieved by Taiwan, Spain and China.
Most of the major machine tool consumers indicated severe decline in
consumption, USA registering 36% decline followed by 16 other indicating double digit
percentage decline. However, china, the largest consumer of machine tools during the
year 2002. Registered 20% growth over the previous year in consumption.
Indian scenario
Machine tools production in India during 2000 – 01 was estimated at Rs: 5847
Million. This was reduced to Rs: 5157 million in 2001 – 02 (-11%) and to Rs: 4845
million (-6%) in 2002 – 03 consumption was of Rs: 8950 million 2000 – 01, Rs: 7787
million in 2001 – 02 (-13%) and Rs: 9023 million (+15%) in 2002 – 03 about 49% of
consumption in the last financial years was met by imports valued at Rs: 4508 million
which has grown by about 45% over the previous year.
CENTRE FOR MBA, KANNUR UNIVERSITY 8
MACHINE TOOLS Ltd, Kalamassery.
COMPANY PROFILE
VISION
CENTRE FOR MBA, KANNUR UNIVERSITY 9
MACHINE TOOLS Ltd, Kalamassery.
To be an Engineering Company of International Repute, Providing Best of Products &
Services with Contemporary Technologies to suit Customer Needs.
MISSION
To establish ourselves as one of the world’s premier companies in the engineering
field having strong international competitiveness.
To achieve market leadership in India through ensuring customer satisfaction by
supplying internationally competitive products and services.
To achieve sustained growth in the earnings of the group on behalf of
shareholders.
HMT MACHINE TOOLS LIMITED
By the end of the Second World War, the Government of India was confronted by a
big problem of disposing the colossal war waste. Ultimately a committee was constituted
CENTRE FOR MBA, KANNUR UNIVERSITY 10
MACHINE TOOLS Ltd, Kalamassery.
to inquire into the possibilities. The committee report of 1948 proposed the establishment
of a Government owned machine tool industry. This was expected to fulfill two aspects.
The first was being utilization of the Rs 4000 Million worth of metallic waste. The
second was the incorporation of state owned infrastructure manufacturing facility. The
result was the birth of the ‘HINDUSTAN MACHINE TOOLS LIMITED
BANGALORE’, which diversified in due course of time to the present stature of the
multi core, multi location, multi unit, multi product, industrial giant HMT Ltd.(A Govt of
India Undertaking Company)
The HMT Ltd was started as a single factory to produce Tool room Lathes at
Bangalore in collaboration with M/s Oerlikon of Switzerland in 1953, with a capacity to
manufacture around 400 machines per year. Since then different Collaborations,
continued in house R & D and tremendous marketing efforts brought HMT, to present in
status.
The growth of HMT was characterized by backward and forward integration of
technology and product diversification. Thus, the company that started with
manufacturing and selling lathes expanded its machine tools product range to evolve as
the ultimate solution in metal cutting. The product diversification efforts took the
company to the business of watches in 1962, Tractors in 1971,Die-casting on plastic
machinery in 1971,Printing machinery in 1972, Presses in 1972, Lamps and Lamp
making machinery in1976, Food processing machinery in 1980, CNC system in 1986,
Ball screw in 1986 and Reconditioning in 1990.
The multi product activities made HMT Ltd changes its identity as Hindustan
machine tools Ltd. Today, HMT Ltd. has 16 manufacturing units with 22 product
divisions, spread through the length and breadth of India. A subsidiary namely HMT
(International) Ltd, takes care of the exports of the company products. They also export
several items for other Indian companies.
HMT Ltd was restructured in 1992 to facilitate better administration of the multi
product business activities. Accordingly, the following business groups were
established.
CENTRE FOR MBA, KANNUR UNIVERSITY 11
MACHINE TOOLS Ltd, Kalamassery.
Machine Tools Business Group, to concentrate on metal cutting
machines.
Industrial machinery Business Group, to deal with Printing Machines,
Die casting and Plastic injection moulding machines, Food processing
Machines and metal forming machines.
Agricultural Business Group to concentrate on Tractors.
Engineering components Business Group, to deal with Casting and Ball
Screws.
Customer product Business Group, to deal with watches and Lamps.
In addition to these Business Group, the company owns three subsidiaries as
follows.
HMT (International) Ltd .which undertakes the overseas projects and
exports.
PRAGA tools Ltd. which manufactures machine tools.
HMT Bearing Ltd. which manufactures precision Bearing in collaboration
with m/s Koyo Japan.
As per the revival of this public sector Industry a turnaround plan has introduced in
the early days of this millennium and reorganized as HMT Ltd –holding company
including Tractors division and presently comprises of the following subsidiaries.
1. HMT MACHINE TOOLS LIMITED.
2. HMT WATCHES LIMITED.
3. HMT CHINAR WATCHES LIMITED.
4. HMT BEARINGS LIMITED.
5. HMT INTERNATIONAL LIMITED.
6. PRAGA TOOLS LIMITED.
1. HMT MACHINE TOOLS LIMITED.
CENTRE FOR MBA, KANNUR UNIVERSITY 12
MACHINE TOOLS Ltd, Kalamassery.
The HMT Machine tools limited is engaged in the manufacture and marketing of
General Purpose Machine tools, Special purpose Machine Tools, Computer Numerically
Controlled Machine Tools, Precision machinery systems, printing machines, Metal
forming presses, Die casting and Plastic Injection molding machines, Ferrous and non
ferrous casting.
THE PRODUCT RANGE OF HMT MACHINE TOOLS UNITS
BANGALORE
Heavy Duty Lathe.
Single and Multi Spindle Automobile.
Radial Drilling Machines.
Multi Spindle Drills.
Cylindrical and Surface Grinders.
Gear Cutting Machines.
Laser Cutting Hobbers.
CNC Turn Mill Centers.
CNC Wire cut EDM.
Fine Boring Machines/SPMs.
PINJORE
FMS and FMC.
Horizontal Machinery Centers.
Vertical Machinery Centers.
Milling Machines.
Broaching Machines.
KALAMASSERY
CENTRE FOR MBA, KANNUR UNIVERSITY 13
MACHINE TOOLS Ltd, Kalamassery.
CNC Turning centre.
Turn Mill Centre.
Flexible Turning Cell.
Copying Lathes.
Centre Lathes.
Offset Printing Presses.
Paper Cutting Machines.
HYDERABAD
Special Purpose Machines.
Horizontal Machinery Centre.
FMS.
CNC Horizontal Boring Centre.
Bed Type and Floor Boring Machines.
AJMER
Grinding Machines.
SPM Grinders.
CNC grinders.
MAJOR MACHINES AND INSPECTION FACILITY AVAILABLE
IN DIFFERENT MACHINE TOOLS UNITS
1. CNC Ram Type Plano Millers.
CENTRE FOR MBA, KANNUR UNIVERSITY 14
MACHINE TOOLS Ltd, Kalamassery.
2. Horizontal Machining Centers.
3. Vertical Machining Centers.
4. Horizontal Jig Boring Machines.
5. Vertical Jig Boring Machines
6. CNC Turning Centers.
7. Turn Mill Centers.
8. Slide Way Grinders.
9. Cylindrical Grinders.
10. Internal Grinders.
11. Precision Gear Shapers.
12. Precision Gear Hobbers.
13. Gear Grinders.
14. Induction Hardening Machines.
15. 3D Co-ordinate Measuring Machines
.
2. HMT WATCHES LIMITED:
HMT Watches Ltd manufactures and markets watches including Hand Wound/
Automatic and Quarts.
3. HMT CHINAR WATCHES:
HMT CHINAR WATCHES LTD is also one of the subsidiaries engaged in the
manufacture of Chinar model watches located in Srinagar, Kashmir State.
4. HMT BEARING LTD:
HMT Bearing Ltd is one of the subsidiaries engaged in the manufacture of
different types of industrial bearing, situated in Hyderabad.
5. HMT INTERNATIONAL LTD:
HMT International is engaged in the export of HMT’s range of product
Worldwide. HMT(I) also marketed other Indian Engineering Products in the World
CENTRE FOR MBA, KANNUR UNIVERSITY 15
MACHINE TOOLS Ltd, Kalamassery.
Market and backed up by a good sales and service network. It also undertakes Turnkey
Projects and technical services for developing countries.
6. PRAGA TOOLS LTD:
Praga tool limited is also a subsidiary of HMT Ltd engaged in the manufacturing of
Machine Tools located in Hyderabad.
THE KALAMASSERY COMPLEX OF HMT, KALAMASSERY
The Kalamassery Unit, the Fourth Machine Tools unit was established in 1963
and started production in 1964. The Unit originally manufactured only two types of
Centre Lathes namely, H&LB, but later added special purpose Lathes like Copying and
Turret Lathes. Model LT-20 was the first product to be indigenously developed by the
unit (1968) and the development of this product was a landmark in the history of the unit.
The production of this machine was later licensed to M/s QETCOS Kerala, MATOOLS,
Philippines, Ceylon steel corporation, Srilanka. The original Centre Lathes H & Lb were
then replaced by a new family of unified series of lathes which was designed and
developed by the unit, incorporating the concept of computer optimized design,
typification, standardization and unification.
DIVERSIFICATION OF KALAMASSERY UNIT AND BIRTH OF
PRINTING MACHINE DIVISION
During the period of 1972-73, Kalamassery unit diversified its product range to
include Printing Machines. Thus was born the Machinery division (PMK). The
commercial entry of PMK was with the two types of letter presses namely. RTE and
RTAE under collaboration with M/s Neibiolo of Italy. Auto platen an indigenous
development came up subsequently. During the ensuring years Printing Machinery
Division came upto with offset presses namely OMTR in collaboration with m/s Nebiolo.
Later indigenous offset presses namely .SOM 136 was introduced in the market. The first
two color machine from HMT was KPO in collaboration with M/s Koenig and Bauer of
Germany. The latest development of PMK is paper cutting Guillotine PG 92 D3 in
collaboration with M/s Pivano Binders of Italy
CENTRE FOR MBA, KANNUR UNIVERSITY 16
MACHINE TOOLS Ltd, Kalamassery.
THE CURRENT PRODUCT RANGE
PRODUCT MODEL
OFFSET PRINTING MACHINES SOM 436
SOM 425
SOM 236
SOM 231
SOM 225
SOM 136
SOM 131
SOM 125G
SOM 120
MOM 1015
MOM 1520
PAPER CUTTING MACHINE PG-92 D3
PG-115
TRAINING CENTRE
This Unit views HRD as one of the primary concern as a measure to increase
productivity and enhance Social Stranding. The company has a well established training
system by personnel of high technical and management skills.
CENTRE FOR MBA, KANNUR UNIVERSITY 17
MACHINE TOOLS Ltd, Kalamassery.
The HRD Programmes undertaken by them include the following:-
1. Management Orientation Programmes
2. Supervisory Development Programmes
3. Customer Training Programmes to equip the customer for the optimum
utilization of HMT Machines.
4. Periodic awareness Training programmes for employees relating to safety,
quality Advanced Technology, Information Technology etc.
5. Multi-skill Training to Machine Operators.
6. Induction and in plant Training to Fresh recruits and Transferees.
7. Apprentice Training Programmes under the Apprentice Act.
8. Project guidance in Management and Technology to students.
9. Industrial familiarization training programmes for engineering college
students.
THE MARKETING NETWORK OF HMT MTL LTD
The Machine Tools Marketing Divisions with its head quarters at Bangalore and
having a wide network of Regional and Divisional offices spread throughout India
caters to the marketing needs of this Unit at the primary level. To co-ordinate the
marketing activities at the unit level and to offer technical support to Machine tools
marketing, a strong sales and services team is constituted at unit level. HMT’s major
Customers include Defense, Railways, Automobile and other Engineering Industries in
various sectors.
MAIN INLAND COMPETITORS FOR THE UNIT’S PRODUCTS
1. Mysore Kirlosker Ltd.
CENTRE FOR MBA, KANNUR UNIVERSITY 18
MACHINE TOOLS Ltd, Kalamassery.
2. ACE Designers.
3. NC Machines Private Ltd.
4. Lakshmi Machine Work.
MAIN FOREIGN COMPETITORS FOR THE UNIT’S PRODUCTS
1. Okuma, Japan.
2. Nori saiki. Co. Ltd Japan.
3. Tukisama, Japan.
4. Muzak, Japan.
5. Ikegai, Japan.
6. GDM, Germany.
7. Churchill, England.
8. Ernault Toyota, Japan.
9. Victor, Taiwan.
10. Tuma, Korea.
11. EMAS, Germany.
WELFARE MEASURES IN HMT, KALAMASSERY
1. Company Quarters are provided to employees.
2. Subsidized Transport facility is provided for employees residing outside
HMT Township.
CENTRE FOR MBA, KANNUR UNIVERSITY 19
MACHINE TOOLS Ltd, Kalamassery.
3. Company sponsors a central welfare association. This association has four
subsidiary clubs, Arts and Dramatic Club, Sports club, Social club, Educational
society.
QUALITY POLICY
HMT MTL IS committed to TOTAL CUSTOMER SATISFACTION by the supply
of QUALITY PRODUCTS AND SERVICES
Through:
Continuous improvement of technology of products and processes.
Innovation and creativity.
Effective implementation of quality management system.
monitoring the effective realization of quality objectives and periodical
review of its suitability
WHAT IS “5S”
1 S SEIRI- Sort out unnecessary items in the work place and discard them.
2 S SEITON – Arrange necessary item in the good order, so that they can easily
picked for use.
‘A place for everything and everything in its place’.
3 S SEISO- Clean your workplace, completely so that there is no dust on the floor,
machine and equipments.
4 S SEIKETSU – Maintain high standard of housekeeping and work place
organizations at all times.
5 S SHITSUKE – Training to follow good housekeeping disciplines,
autonomously.
ISO 9000:
CENTRE FOR MBA, KANNUR UNIVERSITY 20
MACHINE TOOLS Ltd, Kalamassery.
INTERNATIONAL STANDARDS FOR QUALITY MANAGEMENT
Good quality system consists of sound technical and administrative procedures for
assuring quality. QA offers more scope for reducing costs prerequisites and
characteristics of good quality assurance and quality management. The challenge to a
developing nation is to motivate processors and manufacturers to adopt and implement
these standards and to establish a credible nation quality registration scheme, which will
be recognized by trading partners.
In a increasing number of markets and industries third party quality assessments
and registration is becoming a pre requisite for doing business. ISO 9000 registration is
considered the minimum acceptable level for supplier and those who cannot demonstrate
this minimum level may not only have difficulty in selling in certain markets they may be
barred from those markets. Not only must a defendant be able to demonstrate that this
product is well designed and conforms to all standards and regulations, but he must be
able to demonstrate that the product is manufactured consistently within a system that
conforms at least two internationally acceptable standards.
IN ADDITION, ISO 9000 SERIES STANDARD ALSO:-
Motivates Exporters.
Sets a base line
Establishes reasonable standards for Government Procurement.
Focus Training and Professional Development.
Sets general market procedure for regulating health and safety.
Reduces time consuming audits by consumers and regulators.
Raises level of motivation, co-operation, workmanship and quality
awareness.
Improves efficiency, reduces scrap and rework
CENTRE FOR MBA, KANNUR UNIVERSITY 21
MACHINE TOOLS Ltd, Kalamassery.
The following topics in the ISO 9000 series of standards are achieved by
the company:-
1. ISO 9000: Quality management and quality assurance standards section and use.
2. ISO 9001: Model for quality assurance in design/development, production
Installation and servicing
3. ISO 9002: Model for quality assurance in production and installation
4. ISO 9003: Model for quality assurance in final inspection.
5. ISO 9004: Guidelines on development of quality management system to
minimize costs and maximize benefits.
PRODUCT PROFILE
CENTRE FOR MBA, KANNUR UNIVERSITY 22
MACHINE TOOLS Ltd, Kalamassery.
PRODUCT PROFILE
HMT Machine Tools Ltd., Kalamassery makes tools used to manufacture other machines.
The main products produced in HMT MTL, Kalamassery are Turning, Machine centers,
Gear cutting, Special purpose machines, Broching, Drilling and milling machines, Die
casting machines and Plastic Injection Moulding Machines, Presses and Press bakers,
Automation solutions, Printing machines, CNC Control Systems, Precision Ball screws,
GPMs, Conventional Machines. The need of these machines is to globalize the machine
tools industry of India to cater to the rising expectation and requirements of automobiles,
railways, defense, aerospace and other engineering industries to give the required boost to
manufacturing sector. Being an integral sector, growth of machine tools industry has an
immense bearing on the entire economy, especially India’s manufacturing industry. It is
even more crucial for the development of the country’s strategic segments such as
defense, railways, space and automatic energy. Some of the important machines produced
in HMT Machine tools, Kalamassery are shown below
CENTRE FOR MBA, KANNUR UNIVERSITY 23
MACHINE TOOLS Ltd, Kalamassery.
Figure 1 STALLION HS –WHITE CNC TURNING CENTER
Figure 2 NH 22/26/32 CONVENSIONAL MACHINE
CENTRE FOR MBA, KANNUR UNIVERSITY 24
MACHINE TOOLS Ltd, Kalamassery.
Figure 3 AUTOMANN 26 CNC LATHE
Figure 4 CRAFTMASTER high speed precision lathe
CENTRE FOR MBA, KANNUR UNIVERSITY 25
MACHINE TOOLS Ltd, Kalamassery.
Figure 5 STALLION 100S
Figure 6 SOM 136 PRINTING MACHINE
CENTRE FOR MBA, KANNUR UNIVERSITY 26
MACHINE TOOLS Ltd, Kalamassery.
Figure 7 SUPER TURN 20 CNC TURNING CENTER
CENTRE FOR MBA, KANNUR UNIVERSITY 27
MACHINE TOOLS Ltd, Kalamassery.
Figure 8 STALLION 200 TURNING CENTER
Figure 9 SOM 536 PRINTING MACHINE
CENTRE FOR MBA, KANNUR UNIVERSITY 28
MACHINE TOOLS Ltd, Kalamassery.
FUNCTIONAL DEPARTMENTS
CENTRE FOR MBA, KANNUR UNIVERSITY 29
MACHINE TOOLS Ltd, Kalamassery.
FUNCTIONAL DEPARTMENTS
For the smooth functioning of a company each section concerning a specific job is
distinguished into departments. In HMT Machine Tools Ltd Kalamassery there are
mainly fourteen departments which are under the control of the General Manager. The
different departments in HMT Machine Tools are
No. FUNCTIONAL DEPARTMENTS
1 HUMAN RESOURCE DEPARTMENT
2 FINANCE DEPARTMENT
3 PRODUCTION PLANNING DEPARTMENT
4 SALES DEPARTMENT
5 FOUNDRY AND PATTERN SHOP
6 PURCHASE DEPARTMENT
7 CORPORATE PLANNING
8 MTK MANUFACTURING
9 MTK ASSEMBLY
10 PMK MANUFACTURING
11 PMK ASSEMBLY
12 PUBLIC RELATIONS DEPARTMENT
13 SAFETY DEPARTMENT
14 SECURITY DEPARTMENT
CENTRE FOR MBA, KANNUR UNIVERSITY 30
MACHINE TOOLS Ltd, Kalamassery.
Human resource department
HUMAN RESOURCE DEPARTMENT
CENTRE FOR MBA, KANNUR UNIVERSITY 31
MACHINE TOOLS Ltd, Kalamassery.
Human resource management (HRM) is the strategic and coherent approach to the
management of an organization's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the
business. The terms "human resource management" and "human resources" (HR) have
largely replaced the term "personnel management" as a description of the processes
involved in managing people in organizations. In simple words, HRM means employing
people, developing their capacities, utilizing, maintaining and compensating their
services in tune with the job and organizational requirement.
Human resources management is done by the P & A department, some of the functions
which are done by the P&A are
1. Recruitment
2. Selection
3. Training
4. Working hours- Eight hours a day
5. Leaves - (Casual leave, Earned leave, Medical leave, Sick leave, maternity
leave ,special leaves - education leave, examination leave, blood donation
leave,)
6. Holidays-( 12 holidays and two optional holidays)
7. Wages
8. Allowances- (shift allowance, house rent allowance, washing allowance,
daily allowance, traveling allowance, child education allowance )
9. Basic benefits - (provident fund, retirement, pension and mediclaim).
In HMT Activities in the HR department can be classified as
o Industrial Relations
o Personnel
o Welfare activities
Industrial Relations
CENTRE FOR MBA, KANNUR UNIVERSITY 32
MACHINE TOOLS Ltd, Kalamassery.
This department can be regarded as the system of rules regulating employment and
ways in which people behave in the organization. Whenever a conflict takes place, it is
the duty of this department to look into the matters and take correct action. The industrial
relation officer acts as a liaison with legal advisors. The company has been enjoying
peaceful industrial atmosphere for as long time. The company has the co-operation of
employees in almost all the activities.
HMT has under gone a restructuring in 2001. In this process, the existing business group
structure was abolished and changed its identity as a holding company named HMT LTD.
With three subsidiaries viz. HMT MACHINE TOOLS LTD, HMT TRACTORS LTD
and HMT WATCHES LTD. The other subsidiaries will continue to exist.
TRADE UNIONS IN HMT KALAMASSERY
In this unit there are at present four major trade unions namely,
HMT EMPLOYEES CONGRESS (INTUC)
HMT EMPLOYEES UNION (CITU)
HMT EMPLOYEES FEDERATION
HMT WORKERS UNION
The GM of the unit meets the trade union leaders once in every month, to hear them
and appraise the overall situations of the company. It is natural that interest of the
management and trade unions differ on certain issues. In any industry the mass
production can be achieved only by taking into the confidence of the trade union leaders
and utilise them in a positive way and to achieve the target through good industrial
relation.
CENTRE FOR MBA, KANNUR UNIVERSITY 33
MACHINE TOOLS Ltd, Kalamassery.
FUNCTIONS OF HR DEPARTMENT
Recruitment
The recruitment of management trainees in engineering and other area like finance,
marketing, personnel etc. will be made centrally by corporate personal director.
Recruitment function includes two methods;
1. Campus recruitment
2. Recruitment through opens in All India advertisement.
Promotion
A common promotion policy and rules for workman of HMT is a long felt meet.
An integration of the company needs of multi-skills of the present and future with the
aspirations of the workman for an assured career path consistent with their skills had
become imperative in view of the changing technology product mix diversification etc in
the company.
LEAVE PROCEDURE
Employees are eligible for earned leave, sick or commuted leave, maternity leave
and special leave. For the leave and its administration the employees are classified under
category-
A- Employees covered under ESI
B1-Employees not covered under ESI (up to deputy manager)
B2-Level of managers and above.
CL- 10 days for ‘A’ and ‘B1’ categories and 7 days for ‘B2’ categories is
allowed in each calendar.
Year unutilized leave lapses at the end of the calendar year.
Sick leave
‘A’ - 8 days
‘B1’ - 10 days
‘B2’ - 10 days
CENTRE FOR MBA, KANNUR UNIVERSITY 34
MACHINE TOOLS Ltd, Kalamassery.
In HMT presently there are 543 employees including officers, directt employees and indirect
employees.
Employees Number
Officers 219
Direct employees 152
In direct employees 391
Total 543
WELFARE PROGRAMME
Company Quarters: - Drinking water and electricity at subsidized rate.
Transportation: - At subsidized rate.
Canteen facility
Outpatient medical facilities, one dispensary
Arts and Dramatic club
Social club
Educational society
Sports club Medical benefit policy
The time schedule of the employees are mainly divide in to three
CENTRE FOR MBA, KANNUR UNIVERSITY 35
MACHINE TOOLS Ltd, Kalamassery.
HMT Grievance Redressel
Objectives
The objectives of grievance procedure for officers is to provide on easily assessable
machinery for settlement of grievances of officers and to adopt measures so as to ensure
expeditions. Settlement of grievances of officers leading to increased satisfaction on the
job and resulting improved productivity and efficiency in the organization.
Procedure
1. Each unit has a grievance committee consisting of production chief, account
chief and Personal Chief of the unit. The personal chief being the convener of the
committee.
2. The aggrieved person should submit his grievance in writing to the convener
grievance committee.
3. The convener should collect all related relevant data regarding the said
grievance.
4. Grievance committee then should call the assigned officer within 15 days of
receipt of the grievance and discuss said grievance with him. Within a week there after
the grievance committee should record its findings.
5. The findings of grievance committee should be communicated to the assigned
officer by the convener with a copy to the Department Head for taking necessary action
arise out of the findings of the grievance committee.
6. If the aggrieved officer is not satisfied with the findings of the grievance
committee he may prefer an appeal to the unit chief. The unit chief should convey his
decision within 15 days of the receipt of the appeal. The decision of the unit chief is final.
CENTRE FOR MBA, KANNUR UNIVERSITY 36
MACHINE TOOLS Ltd, Kalamassery.
DEPARTMENT CHART
CENTRE FOR MBA, KANNUR UNIVERSITY 37
GM
AGM (HR)
SET SEG SMO
Dy.Chief EngrAGM(HRM)
Dy.Manager Dy.Engr
Assist.Engr
Manager.Training
Officer (IR) Officer (Welfare)
Officer(PR) Officer(HR)
MACHINE TOOLS Ltd, Kalamassery.
Finance department
FINANCE DEPARTMENT
CENTRE FOR MBA, KANNUR UNIVERSITY 38
MACHINE TOOLS Ltd, Kalamassery.
Finance is the science of funds management. The general areas of finance are business
finance, personal finance, and public finance. Finance includes saving money and often
includes lending money. The field of finance deals with the concepts of time, money, risk
and how they are interrelated. It also deals with how money is spent and budgeted.
One facet of finance is through individuals and business organizations, which deposit
money in a bank. The bank then lends the money out to other individuals or corporations
for consumption or investment and charges interest on the loans.
DEPARTMENT CHART
The major functions of the finance department
CENTRE FOR MBA, KANNUR UNIVERSITY 39
JGM(F)
DMF(S)
Main a/cs
DMF(B)
PFCashConcurrenceOBS IBS
A/Cs officer
2 Junior officer
A/Cs officer
A/Cs officer A/Cs
officer
3 Staff
A/Cs officer
A/Cs officer
A/Cs officer
Wages
1 Staff1 Junior officer
Junior officer
4 Staff 3 Staff
MACHINE TOOLS Ltd, Kalamassery.
Accounting the transactions carried out by the company and to prepare
monthly and annual financial statement.
Arrange finance for working capital requirements, capital addition and
other day- to-day needs.
Working capital management.
Liaison with financial institutions and Banks.
Budgetary control.
Functions of the Sections of the Finance Department
Every organization irrespective of its size relies on its financial health for its
survival. It is thus no surprise that public sector organization like HMT has a full-fledged
account section.
IBS (Inward Bill Section):
The entire bill that requires payment to be made by the company are sent
appropriately through the section. It includes purchase bills, expenses bills, and sundry
creditor’s management.
OBS (Outward Bill Section):
The entire bill that required payment towards the company is sent appropriately
from this section. It includes debtors management, inwards management, invoice
generation. Etc.
Financial Concurrence:
Purchase of raw material and incurring of any other expenditure can be done by
only with the concurrence of finance department.
Provident Fund:
CENTRE FOR MBA, KANNUR UNIVERSITY 40
MACHINE TOOLS Ltd, Kalamassery.
This section arranges recovery of provident fund from the employees salary. The
present statutory minimum recovery is 12%. The employees are allowed to contribute
higher quantum voluntarily. The company can also contribute 12% of each employees
salary. The amount contributed by the employee and the employer along with interest is
paid at the time of retirement or resignation or separation of employee.
Wage section:
This section prepares the payroll every month on the basis of master roll given by
the time office. The pay roll preparation is computerized. This section also deals with
advances to employees including four advances.
Cash Section:
This section keeps the cash day work and bank day book. The payment vouchers
prepared by the inward billsection wages and other sections are sent to the cash section
for paymentt. The salary to the workers and supplimentary payroll for the basis to all
employers are made by the cash section. When the payments are received from the
customers against invoices or as advance then the cheque, drafts etc are presented to the
bank by this section. Cash section is responsible for ensuring that the cash credit doesnot
exceed the limit.
Time Office:
A punching machine is kept in the administration building which records the time
and a card is punched into it. The section is used to monitor attendance of the employee.
Cost and Material section:
CENTRE FOR MBA, KANNUR UNIVERSITY 41
MACHINE TOOLS Ltd, Kalamassery.
This section estimates standard and actual cost of machines manufactured by the
company. It prepares data for the fixation of selling price is furnished by this section. It
maintains computerized sore ledger and stock statements. It also prepares annual budgets
on the basis of production programmes, sales programmes and capital budgets. This
section is responsible for all MIS and also prepares monitoring reports.
Main accounts:
This section complies the various transactions accounted by other sections. This
section prepares final account. They also prepares balance sheets, budget for the year.
Source of Finance
The head office that is situated at Bangalore does these activities. They are issuing
equity shares
Profit / loss of HMT MACHINE TOOLS LTD. KALAMASSERY during last five years
Year Profit
2005-2006 -19.70 crores
2006-2007 -20.53 crores
2007-2008 -3.29 crores
2008-2009 3.31 crores
2009-2010 0.0699 crores
CENTRE FOR MBA, KANNUR UNIVERSITY 42
MACHINE TOOLS Ltd, Kalamassery.
CENTRE FOR MBA, KANNUR UNIVERSITY 43
MACHINE TOOLS Ltd, Kalamassery.
PRODUCTION AND PLANNING
DEPARTMENT
PRODUCTION AND PLANNING DEPARTMENT
CENTRE FOR MBA, KANNUR UNIVERSITY 44
MACHINE TOOLS Ltd, Kalamassery.
In any Business Organization, Production activities must be related to market
demands as indicated by the continuous stream of customer’s orders. For maximum
effectiveness this must be done in such a way that customer’s demand is satisfied .But at
the same time, production should be carried out in an economic manner. The process of
developing this kind of relationship between market demand and production capability is
the function of production planning and control
DEPARTMENT CHART
The production Planning Department is the most vital link between production
design and production department. This department provide necessary facilities and
CENTRE FOR MBA, KANNUR UNIVERSITY 45
GMK
JGM(E)
PMD(PL)
ER
DGM(E)
MTD(PL)
Sr.ER
Dy. ER ER
Asst.ER
T/R T/RT/R T/R
MACHINE TOOLS Ltd, Kalamassery.
technical know –how for the manufacture of the product. Production requires optimum
utilization of natural resources, men, money, material and machines. But before starting
the work of actual production, Production planning have to be done in order to anticipate
possible difficulties and decide in advance has how the production should be carried out
in the best and economic way. The Principles of Production Planning lies in the statement
“First plan your work, and then work for your plan”. The role of Production Planning
Department at MTK is as below.
1) Design and development department
Test Charts
2) Production Planning Department
Release papers for manufacture.
Control Production Activities
Production Planning Department at MTK, comprises the following
sections
CENTRE FOR MBA, KANNUR UNIVERSITY 46
Prepares:
specifications
Drawings
Product List
Inspection Standards
Prepares:
Operation Layouts
Estimate Standard Time assemble Flow Charts.
Production scheduling
1) Production Department
Manufactures:
components
Assemble of machines
MACHINE TOOLS Ltd, Kalamassery.
Production Planning and Estimation-PPP, PPE
Production Planning Ordering – PPO
Central Production Planning and Control –CPPC
Functions and Responsibilities of Pre planning Personnel
1. Identify in- house manufacturing, outside manufacturing and brought out
components
2. Prepare Operation Layouts for all in-house manufacturing Components.
3. Identify and initiate action for all special tooling
4. Maintain special tool data
5. Co ordinate and implement design alterations
6. Prepare list of assembly operation, assembly flowchart etc.
7. Intimate for part programming of CNC operations
8. Computerize the data related to part list data
9. Attend shop problems related to production
10. Co ordinating all activities related to computerization of PPP function.
11. Arranging and ensuring the availibility of all quality formats related to PPP
function.
Production planning Ordering (PPO)
1. Issue Series wise manufacturing papers to production shops
CENTRE FOR MBA, KANNUR UNIVERSITY 47
MACHINE TOOLS Ltd, Kalamassery.
2. Co ordinate activities with various department for effective control of
production
Central Production Planning and Control (CPPC)
Handed over the manufacturing papers along with raw material to shop PPC.
Finished Parts Stores(FPS).
Receipt, storage, control and issue of manufactured component-small parts and
sheet metal items.
Functions and Responsibilities of PPE Personnel
Estimation of standard time for all manufacturing /assembly operations identified
in operation layouts and assembly list of operations.
Attending shop complaints regarding standard time
Authorization for special time in job cards
Arranging for time study/Activity sampling.
Functions and Responsibilities of Office Super intendent
1. Typing of operation layouts, statements, letters etc.
2. Maintaining all office files including leave records.
3. Distribution of all correspondence, circulation of notice etc.
SELLING PRICE ESTIMATION
CENTRE FOR MBA, KANNUR UNIVERSITY 48
MACHINE TOOLS Ltd, Kalamassery.
1 MATERIAL COST :Raw materials: steel, Castings and others
(Bronze ,Aluminum Brass etc including allowance for rejection ,material charges)
1 a) BOP (Bought out Parts): Indigenous, Sub contract (Outsourcing) and imported
(Including allowance for rejection +material handling charges.
1+1 (a) =Total Material Cost.
2 CONVERSION COST
2 (a) MANUFACTURING
(Including allowance for rejection, raw material, change manufacturing
conditioning, inefficiency)
2(b) ASSEMBLY (including Allowance for rejection ,Inefficiency etc and machine
painting
2 (a+b)=Total Conversion Cost
1 +2 (total material cost +total conversion cost)=Total Direct Cost
3.SPECIAL COST
a) Development cost (including design ,engineering charges etc.)
b) Pattern cost
c) Special Tooling cost
3(a+b+c)=Total Special Cost
1+2+3 =Factory Cost
4. ADMINISTRATIVE OVERHEADS
5. PACKING AND FORWARDING CHARGES
1+2+3+4+5 =Cost Of production
6. SELLING EXPENDITURE AT UNIT
7. FINANCIAL CHARGES
8. MARGIN
CENTRE FOR MBA, KANNUR UNIVERSITY 49
MACHINE TOOLS Ltd, Kalamassery.
9. SALES COMMISSION
1+2+3+4+5+6+7+8+9 =Projected Selling Price
ANNUAL OPERATING PLAN
Annual operating plan (AOP) for the current year is prepared from the market survey and
sales forecast during the end of the previous year. AOP is converted into production
rolling plan for 3 months based on the firm orders in hand and work in progress. Order
list material warrents are issued to production department based on the firm order details
(FOD) and details of likely order (DLOR) issued from the sales dept.design will issue the
assembly group list for the machines. New assembly groups will be released from design
and supplimentory order list and material warrant is issued to production for the same.
Production planning is done in an economic manner for the planned product mix to
achieve the annual target.
LOAD CAPACITY ANALYSIS
LOAD CAPACITY ANALYSIS is a vital step in production planning because from such
an analysis the following vital information are gathered.
The total of each machine should work in order to achieve the production target of
the year. This is the “LOAD” on the machine group. (eg: turning, milling,
grinding etc.).
The total time that will be available in each machine group found by considering
the total number of working days, the number of working hours per day, the total
number of workers and such other factors. This is the “CAPACITY” of each
machine group.
By comparing the LOAD-CAPACITY of each machine group (hence this name
LOAD-CAPACITY ANALYSIS) we can identify the shortage or surplus hours
on each machine group and production programme can be planned accordingly,
CENTRE FOR MBA, KANNUR UNIVERSITY 50
MACHINE TOOLS Ltd, Kalamassery.
LOAD CAPACITY ANALYSIS is thus first and the foremost step in
planning the production programme in an year.
The annual operating plan for the year is collected and detailed description of
each product is furnished.
The steps involved are calculating the standard hour load in each machine
group is followed by steps by arriving eventually at the actual hour load.
After comparing the load and capacity in each machine group, areas of
shortage or surplus are identified.
CENTRE FOR MBA, KANNUR UNIVERSITY 51
MACHINE TOOLS Ltd, Kalamassery.
SALES DEPARTMENT
SALES DEPARTMENT
INTRODUCTION
Sales and servicing activity is a most important function in fulfilling the objectives of the
organization and needs of the customers. It has the activities of selling the machines as
per customer requirement and maintain the customer satisfaction through its after sales
activities.
CENTRE FOR MBA, KANNUR UNIVERSITY 52
MACHINE TOOLS Ltd, Kalamassery.
SCOPE
The scope of the process mapped are sales, servicing and despatch of HMT
Kalamassery product.
OBJECTIVE
To create and sustain customers in the line with the quality policy of the company
and provide after sales service to achieve total customer satisfaction.
HMT Machine Tools, Kalamassery has a sales department. The machines are
manufactured only as per the order from the customer. If any order cannot be accepted,
then the company has to be intimated within 7 days. After 7 days, within 10-14 days,
HMT has to inform the customer’s orders accepted in its legal format.
DEPARTMENT CHART
PROCESS
The customer gets into contact with Regional office and specifies all the
requirements as to its productions, delivery date price and other details. These details are
then conveyed to the sales department. The order is discussed in detail with the
production department and with financial department for appropriateness of design time,
constraint, design, financial concurrence etc. After the feasibility of the design is
CENTRE FOR MBA, KANNUR UNIVERSITY 53
CHIEF OF SALES
Sales machine tools
Sales Engg. Servicing & Spares PMD
& MTD
Sales PMD
Despatch
MACHINE TOOLS Ltd, Kalamassery.
confirmed by both the department, it gets into Production and after inspection and other
formalities are despatched to the customer at the required rate. The payment is made to
the sales department. This after sending the required commission to the regional office
sends the rest of the cash to the financial department.
SALES ENGINEERING
Chief of sales engineering
Submission of offers for CNC Lathes against enquiries and collection of technically
and commercially clear orders. Execution of orders in coordination with related
departments.
Responsibilities
PROPOSAL
Generation of enquires in liaison with regional /zonal marketing offices.
Preparation and submission of standard and tooled up officers for CNC
lathes.
Interact with customers regarding the offers submitted and provided
clarification required on these offer.
Follow up of offer for the receipt of orders.
Scrutiny of orders and obtaining technical and commercial amendments, if any
required
Put up for unit chiefs sanction ,if the prices accepted vary from the
approved prices.
Preparation of drafts details of firm order for obtaining assembly group nos. /
stock nos. from design department.
Preparation of tooling layouts and follow up for customers approved in case of
tooled up offers.
Associate with tooling trials and incorporate corrections in tooling layouts if any.
Execution
CENTRE FOR MBA, KANNUR UNIVERSITY 54
MACHINE TOOLS Ltd, Kalamassery.
Issue of details of likely orders / details of firm orders with assembly group
nos. / stock nos.
Request /release of tooling layouts for detailed tool design
Initiate manufacturing /procurement of tooling after detailed design tool
selection
Correspondence with marketing office /customer regarding technical details , trial
materials, inspection etc.
Coordinate with all concerned sections and technical work up to despatch of
the machine
Servicing
Responsibilities and authorities of chief of servicing
Commissioning and servicing of machine supplied by MTK in targeted item
either by deputing engineers for unit or by co-coordinating with the corresponding
regional offices, servicing of out of warranty machines on changeable basis.
Arranging free replacement spares for rectifying complaints reported during
warranty period of all machines.
Monitoring of customers complaints and to provide technical advice/ suggestions/
classifications wherever required.
Spares
Function:
excecution of spare parts orders from MTK products from customers and HMT regional
officers.
Responsibility
Receive customers enquiries for spare parts for MTK products, scrutinized and
issue of quatations.
Issue order acceptance against purchase orders received.
Issue proforma invoice for payments.
CENTRE FOR MBA, KANNUR UNIVERSITY 55
MACHINE TOOLS Ltd, Kalamassery.
Receive payment vouchers from account dept and issue delivery vouchers to
accounts dept for clearance.
Collect items against customers order and forward to despatch section with items
with identification tag for proper packing and despatch to customers.
Follow up of serie issue, materials issue and operation sequence in the shop floor.
Planning of spare parts requirements.
Correspondance with customer and regional offices regarding spares activity.
Submission of spares activity dates to marketing division, corporate planning.
Follow up with customers/regional officers regarding pending payment.
Processing of HMT regional offices and unit spares transfer intends.
Documentation of sectional and customer records.
CENTRE FOR MBA, KANNUR UNIVERSITY 56
MACHINE TOOLS Ltd, Kalamassery.
FOUNDRY AND PATTERN SHOP
FOUNDRY
Foundry industry is the mother industry for all types of industrial, agricultural
and consumers products. The developments in this industry therefore are bound to have a
far reaching affect on the production in all other sectors. Though the casting processes are
based on techniques that are age old and amazingly simple in principle considering the
effectiveness of the results achieved the metal casting industries have become the key
industries in the world today.
CENTRE FOR MBA, KANNUR UNIVERSITY 57
MACHINE TOOLS Ltd, Kalamassery.
Foundry industries based on casting principles. Casting is a process & producing
metal parts of desired shape by pouring molten metal in to a prepared mould and then
allowing the metal to cool and solidify. This solidified metal is known as casting.
HMT FOUNDRY
The foundry attached to the machine tools division to manufacture all cast iron
and spheroidal graphite iron required for machine tools and printing machinery division
and can also undertake job orders. Established in 1968 with POLISH design, it is semi
mechanised foundry producing heavy duty grey and SG iron , castings for machine tools
and printing machines using means frequency induction furnace for melting and resine
bonded sand for moulding and core making.
OBJECTIVES OF FOUNDRY DIVISION
In any business organization, production activities must be related to market
demands as indicated by the continuous stream of customer orders. Aggregate planning is
carried out in an economic manner for maximisation of production. From the annual
operating plan, rolling production plan for three months is made. Objective of the
foundry division is to achieve the annual production target in an economic manner by the
timely supply of castings to the production shop and the outside customers.
This can be achieved by
1) Reducing percentage rejection of casting in foundry.
2) Reducing percentage rejection of castings at customer’s end.
3) Reducing energy consumption.
4) Increasing yield percentage.
CENTRE FOR MBA, KANNUR UNIVERSITY 58
MACHINE TOOLS Ltd, Kalamassery.
5) Reducing production loss by TPM.
STEPS INVOLVED IN MAKING A CASTING
Make the pattern out of wood, metal or thermo coal.
Incase of sand casting select, test and prepare the necessary sand mixtures for
mould and for making.
With the help of patterns prepare the mould and necessary cores.
A mould is a container having a cavity of the shape to be cast and core is a body
which is employed to produce a cavity in the casting.
Melt the metal to be cast.
Pour the molten metal in the mould.
Remove the casting from the mould after the metal solidifies.
Clean and finish the casting for priming.
Test and inspect the casting.
Remove the defectors if any salvage.
Pasting is ready for shipping.
Different activities of Foundry
Pattern making
Sand preparation
Moulding
Metal preparation
Pouring
Knock out
CENTRE FOR MBA, KANNUR UNIVERSITY 59
MACHINE TOOLS Ltd, Kalamassery.
Finishing
Inspection
PATTERN SHOP
A pattern may be defined as a model of anything, so constructed that it may be
used for forming an impression called mould in sand or other suitable material. This
mould, when filled with molten metal that solidify, forms a reproduction of the pattern
and is known as casting. The process of making a pattern is known as pattern making and
the person who makes the pattern is known as pattern maker.
The skilled pattern maker must combine an ability to reach a blue prints, visualize
the finished products understand each step in the moulding and casting process. He must
bridge the gap between designer and founder and must also have the skill to transmit
what he envisions into the wood or metal replica of the final part.
Functions of Pattern
A pattern prepares a mould cavity for the purpose of making a casting core prints,
runner, gates, rises are the parts of the pattern. It helps position of cores. A good pattern,
prevent all defects in the castings, properly constructed pattern minimize overall cost of
the casting.
SELECTION OF PATTERN MATERIAL
The following factors assist in selecting proper pattern material
The number of casting to be produced.
CENTRE FOR MBA, KANNUR UNIVERSITY 60
MACHINE TOOLS Ltd, Kalamassery.
The desired dimensional accuracy and surface finish required for the casting.
Nature of moulding process.
Method of moulding.
Shape, complexity and size of the casting.
Casting design parameters and the complexity of the casting part.
Type of moulding materials.
The high probability of changing the casting and hence the pattern is near future,
The chance of repeat orders.
MATERIALS FOR MAKING PATTERNS IN HMT
Wood
Thermo coal
Metal
Plaster
Plastic
Wax
Araldite resins
DEPARTMENT CHART
CENTRE FOR MBA, KANNUR UNIVERSITY 61
SFP
Pattern shop &Technology
DE
Heavy
moulding
AE
Maintenance
MACHINE TOOLS Ltd, Kalamassery.
CENTRE FOR MBA, KANNUR UNIVERSITY 62
DEPUTY CHIEF SUPERVISOR (FY)
DE planning & felting
SFH
Production
AE
Melting
Dy. ENGG.
Repair & maintana
nce
DE materialsDE
Green sand
moulding
Engr medium moulding
EFL
Planning & felting
Officer
MACHINE TOOLS Ltd, Kalamassery.
PURCHASE DEPARTMENT
PURCHASE DEPARTMENT
CENTRE FOR MBA, KANNUR UNIVERSITY 63
MACHINE TOOLS Ltd, Kalamassery.
Purchasing refers to a business or organization attempting for acquiring goods or
services to accomplish the goals of the enterprise. Though there are several organizations
that attempt to set standards in the purchasing process, processes can vary greatly
between organizations. Typically the word “purchasing” is not used interchangeably with
the word “procurement”, since procurement typically includes Expediting, Supplier
Quality, and Traffic and Logistics (T&L) in addition to Purchasing.
DEPARTMENT CHART
Materials engineering is a genetic term coined for the combined activates of material
Planning, processing & stores. The functions of these departments are enumerated
below:
Materials Planning
To forecast and plan for material required for production, maintenance,
servicing and spares based on the production program, sales fore cast and
request from maintenance, spares and servicing.
CENTRE FOR MBA, KANNUR UNIVERSITY 64
JGM
DGM
AGM
MANAGERS (2)
OFFICE STAFF OFFICE STAFF OFFICE STAFF
MACHINE TOOLS Ltd, Kalamassery.
To follow – up with purchase department for shortage items, so as to
ensure the availability of right materials in right time, and issue of the
same to the required department.
Purchasing
The procure the required quantities of quality materials at the best possible terms based
on the annual production program/Rolling assembly program.
Stores
To ensure that all varieties of materials received forms external sources are properly
identified, stored, pre served and protested from damages occurring due to handling or
environmental deterioration and kept under safe custody.
To keep proper accounting of all the material transactions.
Scope
The scope includes material planning procurement and storage of all materials as
per production requirements. Maintains and spaces requirement for machine tools,
foundry and printing machines.
The details of scope are as shown below:
Material planning & control
Vendor qualification & approval.
Maintaining the list of approved vendors
Vendor performance evaluation in co-ordination with quality assurance
department
Co-ordination with vendors for quality problems and corrective actions.
Planning and procurement of materials as per specified requirements.
Review and release of purchase order
Receipt of incoming materials, co-ordination of inspection of the same
Arranging for proper storage with proper identification
CENTRE FOR MBA, KANNUR UNIVERSITY 65
MACHINE TOOLS Ltd, Kalamassery.
Ensuring proper handling & preservation of materials.
Maintaining all relevant documents/records of receipts, issues and storage.
OBJECTIVES
Timely procurement and supply of required materials with prescribed
specifications and quality at the most competitive price and terms.
Fair, consistent and transparent purchase practices.
Continuous search for alternate sources of supply and to develop reliable sources
of supply.
CLASSIFICATION OF MATERIALS
All purchases should be broadly categorized into revenue and capital. Under revenue,
further categorization shall be into production and non –production items. The production
items shall be categorized ‘A’, ‘B’ and ‘C’ class as per classification adopted by the
units/divisions.
MODES OF PURCHASE
Tender system
It is adopted to procure materials at competitive rates and different types of tenders are in
vogue viz. open tender, limited tender, single tender and local purchases through spot
offers (spot tender).
a) Open tender
Open tender refers to calling of quotations by advertising tender enquiries in
website of the company and at last in one reputed local/national newspapers. All
tender notices are to be approved by the competent authority (unit chief/purchase
chief). Open tender have to be resorted to for an item where the estimated tender
value of purchase exceeds Rs 250000. The time allowed for receiving quotations
against open tender can be fixed at a minimum of 21 days from the date of release
CENTRE FOR MBA, KANNUR UNIVERSITY 66
MACHINE TOOLS Ltd, Kalamassery.
of tender enquiry/notice. Time allowed for receiving quotations may be limited to
minimum 15 days with sanction from unit chief.
b) Limited tender
Limited tender are those addressed to all parties in the approved list of suppliers
for the required items, as per the data base maintained by the purchase
department. The time allowed for receiving quotations against limited tenders
shall be minimum 15 days from the date of release of tender. Foreign and local
suppliers were mode of communication available through E- mail and fax, and to
meet the urgent delivery requirement, enquiries may be sent by
E-mail/Fax/Courier which works out to be faster and economical.
c) Single tender
Single tenders are those addressed to a single party and the reasons for the same
are to be clearly recorded in the proposal. This can be resorted to only under the
following conditions and with the prior approval of purchase co ordination
committee and sanction from the unit chief.
1) The government has canalized the supply only through a single source.
2) Suppliers are from government and semi government agencies and controlled
agencies who have a market monopoly for those products( Eg: petrol, diesel,
LPG, iron ore) and based on the inevitability of the situation.
3) Time limit for obtaining offers may be stipulated based on requirement
4) Offers by E-mail/ Fax can be accepted in case of single tender/ proprietary
item enquiries
d) Spot Tender
This is resorted to only for emergent requirements. A team of officers comprising
of representatives from purchase, Finance and User departments proceed to the
market and obtain spot offers from local vendors after physically verifying and
inspecting the goods and obtaining the assurance that the items are offered ex-
stock.
CENTRE FOR MBA, KANNUR UNIVERSITY 67
MACHINE TOOLS Ltd, Kalamassery.
PURCHASE
Purchase from collaborators
Purchase from foreign suppliers
Purchase through long term contract
Cash purchase
Purchase with specific imprest
PROCEDURES RELATED TO PURCHASE FUNCTION
Procedure to treat rejected materials
Excess supply
Delivery ahead of schedule
Change in statutory levies
Issue of statutory forms
Price variation/Escalation
Avail of CENVAT
Mode of transport
a) Inland purchase
b) Foreign purchase
Responsibilities of Purchase Department
Adherence to guide lines contained in the purchase manual.
Maintanance of an updated vendor register system.
To issue enquires / tenders, analyse the quatations received and prepare
comparative statements with a view to obtain competitive price to HMT.
To conduct negotiation with tender.
CENTRE FOR MBA, KANNUR UNIVERSITY 68
MACHINE TOOLS Ltd, Kalamassery.
To keep tender box with lock for receiving offers in sealed tenders. Tender box
shall be opened in the presence of venders and representative of finance
department in the case of open tender, limited tender, single tender etc.
To ensure fair opportunity to tenderers/suppliers and competitive prices and
terms and assured quality to HMT.
To issue purchase orders in time after obtaining competent authority’s sanction
and follow up for supplies and periodical review of pending purchase orders.
To follow up with suppliers for timely supply and replacement / settlement of
claims and other dues from suppliers or closure of purchase order is ensured.
To co-ordinate and assist finance and inspection department in settlement of bills
and recovery of dues if any.
To submit applications for import clearence and obtain technical clearences and
import licenses where ever applicable.
To enter into annual rate contracts with committed delivery schedules for
standard items, where ever advantageous to HMT.
To enter into service contracts for transportation, customs clearence and
maintanace of equipment etc.
To ensure after-sales service is fulfilled by the supplier during warrenty and post-
warrenty period.
To effectively plan and control the inventory level.
To be alert and responsive to the changes in production programme and change
in requirement of material.
To interact frequently with purchase department of other units with a view to
sharing of information regarding price, source of supply, payment terms, vendor
rating etc.
To ensure that insurance claims are prefered in time, for items damaged/lost in
transit.
Standardization and computerization of purchase activities and inventory
controls.
CENTRE FOR MBA, KANNUR UNIVERSITY 69
MACHINE TOOLS Ltd, Kalamassery.
All relevant data regarding purchase function should be recorded and
maintaining, as required for the internal use as well as providing the information
as per present provision of right to information act.
No purchase orders shall be placed against anticipated customer orders except
under special circumstances for which prior specific approvals of competent
authority shall be taken (project dept/Engg dept).
Review of show cause notice from customers, counter claims from vendors and
advance payments for items rejected subsiquently.
Minimize dependency on imports.
Serve as an information centre on materials like prices, source of supply,
specifications etc. to all other units/ departments.
Ensures inventory is at an optimum level.
Ensure that the economic and legal interests of the organization are safeguarded
at all lengths.
Ensure that advanced new technologies like usage of internet etc are adopted for
more effective procurement practices.
CENTRE FOR MBA, KANNUR UNIVERSITY 70
MACHINE TOOLS Ltd, Kalamassery.
CORPORATE PLANNING
DEPARTMENT
CORPORATE PLANNING DEPARTMENT
As a result of increase in market competition and the changing technologies, it
is necessary for an organization to have a planning department in order to meet the
CENTRE FOR MBA, KANNUR UNIVERSITY 71
MACHINE TOOLS Ltd, Kalamassery.
competition successfully. Due to the liberalization all over the world, world itself become
a single market and many organizations are coming into this market with different
strategies. So to face these challenges from the competitors and to satisfy the needs of the
customers they have to plan their strategies in advance and carefully.
HMT, Kalamassery has a corporate planning department. HMT has head office
in Bangalore and from there planning is done on the basis of the reports submitted there
by the planning department of each HMT machine tool units all over the country.
Corporate planning department in HMT have a Deputy Engineer and an employee.
Deputy Engineer is directly reporting to GMK.
Functions
Compilation of Business Plans
Compilation of operational plans
Preparation of short term plans & Rolling plans
Maintaining and Furnishing Information to the management
Secretarial function for the unit board.
Arrangement of Review Meeting:-
Weekly production and sales review (Saturday)
Monthly production and sales review (Yellow card)
Weekly target meetings (Monday)
Monthly production & sales finalization meeting (26th of every month)
Project planning
o Long term capital Budgeting
o Short term capita Budgeting
o Capital procurement.
o Maintaining and famishing information regarding capital procurement to
management.
CENTRE FOR MBA, KANNUR UNIVERSITY 72
MACHINE TOOLS Ltd, Kalamassery.
o Sending monthly performance report
o Arrange for monitory meeting:-
Inventory control – monthly
Energy conservation – monthly
DEPARTMENT CHART
CENTRE FOR MBA, KANNUR UNIVERSITY 73
G.M
D.G.M
ENGR
OFF SUPDT
MACHINE TOOLS Ltd, Kalamassery.
MTK MANUFACTURING
DEPARTMENT
MTK MANUFACTURING
Manufacturing is the use of machines, tools and labor to produce goods for use or sale.
The term may refer to a range of human activity, from handicraft to high tech, but is most
commonly applied to industrial production, in which raw materials are transformed into
CENTRE FOR MBA, KANNUR UNIVERSITY 74
MACHINE TOOLS Ltd, Kalamassery.
finished goods on a large scale. Such finished goods may be used for manufacturing
other, more complex products, such as aircraft, household appliances or automobiles, or
sold to wholesalers, who in turn sell them to retailers, who then sell them to end users –
the "consumers".
Manufacturing takes turns under all types of economic systems. In a free market
economy, manufacturing is usually directed toward the mass production of products for
sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently
directed by the state to supply a centrally planned economy. In free market economies,
manufacturing occurs under some degree of government regulation.
Modern manufacturing includes all intermediate processes required for the production
and integration of a product's components. Some industries, such as semiconductor and
steel manufacturers use the term fabrication instead.
Role of manufacturing process;
1. Design & Development Department:
Prepares-Match specifications, Drawings, Parts list, Inspection standard & test
chart.
2. Production Planning Department:
Prepares-Operation layout, Estimates standard time, Assembly flow chart,
Production schedule.
3. Production Department:
Prepares-Manufacturing components, Assembly of machines, Control production
activities.
MTK Manufacturing has divided into 2 parts:
CENTRE FOR MBA, KANNUR UNIVERSITY 75
MACHINE TOOLS Ltd, Kalamassery.
1. Heavy parts.
2. Small parts.
Heavy Duty Products
1) Bed
2) Leg Stock
3) Tail Stock
4) Apron
5) Saddle
6) Feed Box
Small Duty Products
1) Gears
2) Main Spindle
3) Spine Shaft
4) Motor Pulley
5) Head Stock Pulley
6) Bearing Covers
7) Hand Wheel
8) Levers
9) Blocks
DEPARTMENT CHART
CENTRE FOR MBA, KANNUR UNIVERSITY 76
MACHINE TOOLS Ltd, Kalamassery.
M251 M252 M253 M256 M255 M254 M259 M262 M260M263M261
CENTRE FOR MBA, KANNUR UNIVERSITY 77
DG[MM]
ENGR
DCE[SP]
ENGR
GM[P]
SMHSMV
Asst ENGR
ENGR
Dy ENGR
SGR
ENGR
SMN
Dy ENGR
Asst ENGR
Asst ENGR
MACHINE TOOLS Ltd, Kalamassery.
Production Facilities At MTK Manufacturing
CE NO SECTION
M 251 ROUNDS
M252 NON ROUNDS
M253 HEAT TREATEMENT
M254 LEAD SCREW
M255 SPINDILES
M256 GEARS
M257 TURRETS
M259 ACCESSORIES
M260 HEAVY PARTS
M261 HTC MACHINING CENTRE
M262 CNC TURNING CENTRE
M263 SHEET METAL
M 271 MTK-ASSEMPLY (GPM)
M 272 MTK GPM ASSEMPLY CNC
M 273 MTK PRE FINAL ASSEMBLY
CENTRE FOR MBA, KANNUR UNIVERSITY 78
MACHINE TOOLS Ltd, Kalamassery.
mtk assembly department
MTK ASSEMBLY
CENTRE FOR MBA, KANNUR UNIVERSITY 79
MACHINE TOOLS Ltd, Kalamassery.
INTRODUCTION
Among the subsidiaries of HMT LTD, Machine Tool Division Kalamassery is
engaged in producing various types of turning centers, printing machines & cutting
machines. Assembly activity is the key function of any organization.
DEPARTMENT CHART
SCOPE
CENTRE FOR MBA, KANNUR UNIVERSITY 80
GMK
JGM(MP)
JGM(AY)JGM(D)
Sr.ER ELECTRICAL ASSEMBLY
JGM (MM)
DY CHIEF ENG
SR ENG
WG WGWG WG WG
SR ENGG
DY CHIEF ENG
WG
MACHINE TOOLS Ltd, Kalamassery.
The main function of the department is to assemble the machines based on rolling
plan applied by sales department to confirm with the performance & quality specified in
the design document. Assembly department will offer the assembled machines for in
house inspection. It will also monitor at different stages of assembly to ensure that a
quality product is delivered to the customer.
Purpose
To assemble the machines as per the rolling plan supplied by sales department.
To assemble the machines to meet design specification.
To complete the assembly of machines as per the dispatch plan.
To evolve systems to make the system flexible to adapt to the changes in the sales
plan.
To improve methods & systems to changing needs for market.
To assemble the pre-assemblies, group assemblies & final assemblies to match with
assembly drawings & specifications of the machines.
To record the non conformities & take corrective actions to prevent recurrence of the
problem.
To interact with departments like production, design, tool design, purchase, sub-
contract & sales for continual improvements of the machine.
To complete assembly of machines without any shortcoming & problems for the final
assembly.
Objective
1. Improve performance index.
2. Improve efficiency of operations.
3. Reduce number of non-conformities in assembly detected during in process & during
final testing.
4. Reduce number of customer complaints owing to assembly snags.
Reponsibility of officers in assembling section
CENTRE FOR MBA, KANNUR UNIVERSITY 81
MACHINE TOOLS Ltd, Kalamassery.
HEAD OF THE DEPARTMENT OF THE ASSEMBLY
Co-ordinate the activities in the respective assembly areas effectively and
efficiently in line with the units dispatch and production programme.
Maintain discipline and good industrial relations in respective assembly groups.
Co-ordinate the activities in assembly with other section like design, planning
etc.
To ensure proper upkeep of assemblies facilities.
Effective leadership in implementation of productivity improvement program.
Implement and sustain procedure relating to ISO 9001.
CENTRE FOR MBA, KANNUR UNIVERSITY 82
MACHINE TOOLS Ltd, Kalamassery.
Pmk manufacturing department
PMK MANUFACTURING
OBJECTIVES
CENTRE FOR MBA, KANNUR UNIVERSITY 83
MACHINE TOOLS Ltd, Kalamassery.
Manufacturing activities is the key function of any organization. The main
objective of the department is to supply components manufactured based on Design and
planning documents and accepted by inspection and Quality control Department to
assembly shops at the required time. The manufacturing schedule is governed by the
annual production programme and its subsequent monthly split ups based on the order
position and delivery schedule. Manufacturing department in PMD is divided into 3
parts:
1. Heavy parts.
2. Small parts.
3. HTC (Hi-Tech Centre)
Small parts sections are namely based on the shapes of components they are
processing. The sections are Rounds, Non- rounds and Cams, Gears and Rollers,
manufacturing progress. Heavy parts deals with processing of heavy components.
To maintain orders & discipline in the section. Do necessary co-ordination with
other production as well as service section for the smooth & harmonious functioning of
the section. Generate team spirit among employees & supervisory staff & strive for the
achievement of company objectives. Initiate disciplinary action wherever required.
CENTRE FOR MBA, KANNUR UNIVERSITY 84
MACHINE TOOLS Ltd, Kalamassery.
Pmk assembly department
PMK ASSEMBLY
INTRODUCTION
Among the business group of HMT, Machine Tool Division Kalamassery is
engaged in producing various types of turning centres, printing machines & cutting
machines. Assembly activity is the key function of any organization.
CENTRE FOR MBA, KANNUR UNIVERSITY 85
MACHINE TOOLS Ltd, Kalamassery.
SCOPE
The main function of the department is to assemble the machines based on rolling
plan supplied by sales department & to confirm with the performance & quality specified
in the design documents. Assembly department will offer assembled machine for in
house inspection. It will also monitor at different stages of assembly to ensure that quality
product is delivered to the customer.
PMK Assembly is divided into:
1. Group Assembly.
2. Pre-Final Assembly.
3. Final Assembly.
PURPOSE
To assemble the machines as per the rolling plan supplied by sales
department.
To assemble the machines to meet the design specifications
To complete the assembly of machine as per the dispatch plan
To evolve systems to make the system flexible to adapt to the changes in the
sales plan.
To improve methods and systems to changing needs of market.
To assemble the pre-assemblies, group assemblies, and final assemblies to
match with assembly drawings and specification of the machine.
To record the non-conformities and take corrective actions to prevent
recurrence of the problem.
To interact with departments like production, design, tool design purchase,
sub-contract and sales for continual improvement of the machine.
To complete the assembly of machines without any shortcoming and
problems for the final assembly inspection.
CENTRE FOR MBA, KANNUR UNIVERSITY 86
MACHINE TOOLS Ltd, Kalamassery.
DEPARTMENT CHART
CENTRE FOR MBA, KANNUR UNIVERSITY 87
DGM(YP)
ONE ONE ONEONE
WG 4 WG 9 WG 15 WG 8
P 270
125/MOM FINAL
ASSEMBLY
P 270
136/CUTTIG, PAINTING,
FINAL ASSEMBLY
P 270
PRE ASSEMBLY
P 278
ELECTRICAL
JGM(PP)
ONE
WG 6
P 270
GROUP
ASSEMBL
Y
MACHINE TOOLS Ltd, Kalamassery.
Public relations department
PUBLIC RELATIONS DEPARTMENT
Public relations (PR) is a field concerned with maintaining public image for businesses,
non-profit organizations or high-profile people, such as celebrities and politicians.
An earlier definition of public relations, by The first World Assembly of Public Relations
Associations held in Mexico City in August 1978, was "the art and social science of
analyzing trends, predicting their consequences, counseling organizational leaders, and
implementing planned programs of action, which will serve both the organization and the
public interest."
CENTRE FOR MBA, KANNUR UNIVERSITY 88
MACHINE TOOLS Ltd, Kalamassery.
Others define it as the practice of managing communication between an organization and
its publics. Public relations provides an organization or individual exposure to their
audiences using topics of public interest and news items that provide a third-party
endorsement and do not direct payment. Once common activities include speaking at
conferences, working with the media, crisis communications and social media
engagement, and employee communication.
Public relations is used to build rapport with employees, customers, investors, voters, or
the general public. Almost any organization that has a stake in how it is portrayed in the
public arena employs some level of public relations. There are a number of public
relations disciplines falling under the banner of corporate communications, such as
analyst relations, media relations, investor relations, internal communications and labor
relations.
DEPARTMENT CHART
CENTRE FOR MBA, KANNUR UNIVERSITY 89
GM
PUBLIC RELATIONS
OFFICER
AGM(HR)
MACHINE TOOLS Ltd, Kalamassery.
Basically with the expansion of public relations activities to different types of
organisations, the nature of its function have also undergone change. Twenty years ago
no public relations practitioner would have agreed that communicating with its
employees is one of the function of public relations department but hardly any
practitioner and proffesional today can deny that it is a public relation function.
The public relations department should organise press conference at the time of launching
a company, new product, new service and new financial year with highlights of the
acheivements of previous financial year, issue clarification on any controversy regarding
company in news papers, manage press coverage of company’s activities from time to
time, lobby among govt circles to obtain licenses at the cost of competitors and do liaison
work with various govt departments to procure faster electricity connections, telephone
lines, release of quotas of raw materials, etc.
CENTRE FOR MBA, KANNUR UNIVERSITY 90
RECEPTION
OFFICE SUPT. XEROX OPERATOR
OFFICE SUPT.
MACHINE TOOLS Ltd, Kalamassery.
Breifly, public relations practitioners were looked up on as the Ali Baba of the company,
who should solve all critical problems as and when it is confronted by them. The
emphasis was on “Management by Drive” rather than “Management by Objectives”.
Concept of public relations as defined by HMT is “P” represents performance and “R”
stands for recognition. Hence PR is the art of getting recognition for performance of
organization. For any big organization it is necessary to have efficient public relations
department. The functions of PR department in HMT machines tools limited is as
follows,
Scanning newspapers every day for information regarding the company or
even competitors and it provide a backup service to concern departments.
This department also has the responsibility of receiving VIP and arranging
other visits including factory visits of students from technical institutions.
Central registry managers manage the letters and couriers to respective
departments.
Reception is the frontend of public relations department.
Conference hall is being managed by the PR department.
Overall responsibility for all works in public relations and publicity
including reception, arranging seminars and conferences of general nature,
protocol, photo copying and duplication work liaison with media and
service like telex, fax, telephone exchange etc,.
This department also conducts some community development activities.
PR department has also have the functions of editing, printing and
publishing house journals in English and Malayalam, releasing
advertisements, holding press conference and press releases.
Mailing is done by the staff of PR. In mailing they will transmit the letter
to different departments and also from the departments.
CENTRE FOR MBA, KANNUR UNIVERSITY 91
MACHINE TOOLS Ltd, Kalamassery.
CENTRE FOR MBA, KANNUR UNIVERSITY 92
MACHINE TOOLS Ltd, Kalamassery.
Safety department
SAFETY DEPARTMENT
HMT MTL is a company where health and safety, assurance is properly maintained
The department which helps in maintaining safety has introduced many technical and
methodical ways to reduce the accidents and hazards. For the safety of employees some
statutory tests are made for certain areas such as crane, lift, pressure vessels etc. there are
60 fire extinguishers placed in several areas for the safety of the workers.
DEPARTMENT CHART
CENTRE FOR MBA, KANNUR UNIVERSITY 93
G M
Safety OFFICER
MACHINE TOOLS Ltd, Kalamassery.
The main functions include
Safety of the organization
Safety promotion
Prevention and precaution of the fire
Checking of the safety instruments
Fire and safety training to the employees
Safety measures taken
Fire hydrant network
Sprinkler system for spaying water in case of fire
Insulated sphere and bullets to reduce heat
Deluge system provided for loading and unloading areas of
chemical
Fired form process
Safety shower and eye wash system are provided
Fire proofing is done
Two generators of 1000kw are installed
First aid systems are provided
Fire alarm
Smoke detectors
Work permit system is practiced
Personal protective system
HMT HEALTH AND SAFETY POLICY
The management of HMT Ltd kalamassery is committed towards maintaining healthy and safe working environment for the employees at all levels, which along with other commitments lead to Total Quality Management, in all spheres of activities.
Objectives
CENTRE FOR MBA, KANNUR UNIVERSITY 94
MACHINE TOOLS Ltd, Kalamassery.
To create safe and healthy working environment in the factory and to maintain awareness among all the employees about health and safe working habits.
Policies
The provisions of various enactments will be complied with for securing health, safety, and desired environmental standards.
The health and safety performance of the employees at different levels will be reviewed periodically ad this will be taken into account for considering career advancement.
Safety committees will be formed with duties and functions defined as stipulated in Kerala factories Rule 1957.
The safety department will periodically assess the status of the health and safety measures provided through safety audit and risk assessment and implement preventive measures in consultation with the safety committees.
Necessary instructions will be given to all contractors and outside agencies entering the premises and they will be bound to obey the same for their safety and health.
Safety and health awareness will be created by displaying slogans, conducting competitions and training programmes.
The safety department will ensure purchase, storage and distribution of quality personal protective equipment and insist on the usage of the same by the employees concerned.
Reasons for unsafe actions/conditions
Lack of knowledge
Lack of education
Lack of training
Physical condition
Psychological condition
Unhealthy body
Instructions for the Employees
CENTRE FOR MBA, KANNUR UNIVERSITY 95
MACHINE TOOLS Ltd, Kalamassery.
Safety is every body’s business. It is every body’s duty to work safety and to do the job promptly.
Report promptly and situation affecting the safety of yourself or your fellow employees.
Entering the factory under the influence of liquors and other intoxicants is strictly prohibited.
Employees should know the location of the stretchers, first aid box, fire extinguishers and other such equipments.
All employees should observe and obey all regulatory signs.
Every employee, trainee, apprentice and contract laborer etc should consider it as his responsibility to do his part in maintaining good housekeeping at his job location.
First aid is the immediate and temporary care given to the victim of an accident. Use the stretcher or trolley if required for taking the casualty to the dispensary immediately.
Air hoses, temporary cables of extension etc should not be allowed to lie across walkways passages.
Internal vehicles must be driven carefully inside the factory premises and the speed must not be exceeded beyond 15km/ hr. outside vehicles are not permitted inside the production shop.
Personal protective equipments like goggles, gloves, aprons, safety shoes, helmet, safety belt etc supplied by the company must be worn while on duty.
An employee sustaining injury on the job however minor it may be, should report it to his supervisor immediately.
It should be clearly understood that it is the duty of every employee to protect men, machine and materials of the company.
It should be ensured that all contractors labour is complying with all regulations, safety codes and safety practices while they are working in the company premises.
CENTRE FOR MBA, KANNUR UNIVERSITY 96
MACHINE TOOLS Ltd, Kalamassery.
All dangerous occurrences like fire, collapsing of any wall, overturning of cranes etc must be reported by the officer in charge of the section where it has occurred to the safety department.
Safety committees as required under factory rules are constituted in the machine tool, printing machine and foundry divisions. Each committee is represented by equal number of management and employees representatives and meets periodically to discuss the safety matters in the company. Each employee is requested to bring their suggestions to prevent any accident to the committees notice through their representatives.
The following dress code to be followed
Long pants and short or full sleeved shirts with shirt tails tucked into be used. No loose clothing is permitted.
Long hair to be tied with a piece of cloth or net.
Security department
CENTRE FOR MBA, KANNUR UNIVERSITY 97
MACHINE TOOLS Ltd, Kalamassery.
SECURITY DEPARTMENT
Security is one of the important functional aspects of every organization. Its main
purpose is to protect the man, material (raw material, assembled parts, building and
installations) and its assets. This department is direct control of General Manager. This
department consist security officer, Security inspectors and guards (Permanent and
contract basis). This department has common low on the basis of security standing order
and guidelines. Confidential matters are handled under direct order of General manager
DEPARTMENT CHART
CENTRE FOR MBA, KANNUR UNIVERSITY 98
GM
CSO
SSO
MACHINE TOOLS Ltd, Kalamassery.
The main function of the security is to protect the company’s property. Gate pass is
provided for all the employees and those who enter into the company for various
purposes. There are separate gates for man and materials. This department provides
patrolling day and night. It is the duty of safety department to flag on the national flag in
the morning and flag off in the evening.
At present, 19 permenent staffs are in the department most of them are Ex servicemen on contract basis, 9 members are kept as gate keepers. The main duty of this department is to check every employee and unrecognized persons are not allowed. There are many registers, which are maintained in the security department. Material outgoing registers or white pass :- sale of material.
Gate pass 1- The material is sent to other country.
Gate pass 2- The passing of machinery spare parts with in india.
Material incoming register
The materials coming into the company are recorded here. The security will check quantity supplier name etc.
Tool register
Temporary going of material, machinery to different department in the
company. This record will contain date, time, quantity etc.
RECORDS MAINTAINED
Attendance Register
Key Register
CENTRE FOR MBA, KANNUR UNIVERSITY 99
SHIFT I/C A
SHIFT I/C B SHIFT I/C C
MACHINE TOOLS Ltd, Kalamassery.
Duty Roster
Absents Register
Materials incoming Register
Gate Pass Register (White Color)
Gate Pass Register (Pink Color)
Gate Pass 1 Register (For inland Materials)
Gate pass 2 register (for abroad materials)
Customers Register
Vehicle Register
Visitors Pass Register
Casual labour Register
Tool Register
Officers in and out Register
This department aim is to get date for future business from marketing department
and their data are to be analyzed and submit it to top management. Before submitting
report they consider the environmental factors for running the business. Its main function
is to setup infrastructure facilities for doing business in future.
CENTRE FOR MBA, KANNUR UNIVERSITY 100
MACHINE TOOLS Ltd, Kalamassery.
Findings
CENTRE FOR MBA, KANNUR UNIVERSITY 101
MACHINE TOOLS Ltd, Kalamassery.
Findings
1. All departments are computerized. Special training is provided to them.
2. Limited opportunity for job rotation.
3. Safety Measures are efficiently used.
4. Welfare Measures are initiated for employees.
5. Punching card system is used for Attendance.
6. Resources are not fully utilized.
7. Many High technically skilled and qualified persons took VRS.
8. Promotion is based on the seniority and performance.
9. Good working conditions and welfare facilities for the employees.
10. Decision making is very slow.
11. Company is facing the problem of man power shortage.
12. Presently company is not able to take bulk orders.
13. Lack of professionalism in top level.
CENTRE FOR MBA, KANNUR UNIVERSITY 102
MACHINE TOOLS Ltd, Kalamassery.
Suggestions
CENTRE FOR MBA, KANNUR UNIVERSITY 103
MACHINE TOOLS Ltd, Kalamassery.
Suggestions
1. Replacement of the existing outdated machinery with latest.
2. Employees must motivated by giving promotion and cash incentives.
3. Adopt JIT technology for the effective utilization of the resources.
4. Avoid the use of costly machines by trainees and casual labours, this will help to
reduce scrap and increase the life span of machines.
5. Recruit new technically skilled employees. It may be skilled trainees within the
organization or the engineers with experience from other reputed organization.
6. Proper and regular maintenance of plant and machines should be done.
7. Professional management should be appointed.
8. If Kalamassery unit is made as an independent unit, it will be more effective.
9. Take effective measures to prevent labour turnover (skilled employees).
10. Make appropriate changes in the products design and features on the basis of new
market trends (mainly printing machines).
11. Maximum utilization of available resources.
CENTRE FOR MBA, KANNUR UNIVERSITY 104
MACHINE TOOLS Ltd, Kalamassery.
Swot analysis
SWOT ANALYSIS
CENTRE FOR MBA, KANNUR UNIVERSITY 105
MACHINE TOOLS Ltd, Kalamassery.
STRENGTHS
1. Products of HMT are comparatively better in quality than other Indian
manufacturers.
2. Well established manufacturing bases (16 manufacturing units and 22
product divisions).
3. Strong technological base.
4. Unit accredited with ISO 9000 and 9001.
5. Highly skilled professionals and qualified work force.
6. Dedicated work force.
7. Good strength application engineering and tooling.
8. Extensive marketing network.
9. Strong brand equity.
10. Widest range of machine tools from general purpose lathe to CNC
Machines.
11. Foundry with all facilities.
WEAKNESS
1. The company was not able to retain its skilled employees.
2. The machine of the HMT is high price in the market.
3. Insufficient fund for the company’s expansion plan.
4. HMT Kalamassery has to import a lot of valuable raw material from
outside.
5. Political interference.
6. Old plant and machinery.
7. Relatively high average age of employees compared to external standards.
8. Unhealthy direct or indirect ratio of employees.
9. Lack of young blood in the execution level
10. Red tappism
11. Difficulty in fund mobilization.
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MACHINE TOOLS Ltd, Kalamassery.
OPPORTUNITY
1. HMT can enter in web printers market which has a good potential.
2. Diversification of products in the future.
3. Demand from defense sector.
4. Growth in auto mobile sector.
5. Growing trend of multinational outsourcing manufactured components
from India.
6. Adopt new technology for production and marketing.
7. Expectation of increase in Export.
THREATS
1. High quality products from technically advanced countries.
2. Entry of new private sectors.
3. Increasing price of steel which is a major raw material.
4. Competition from second hand imported machinery.
5. Increase the cost of production through material cost.
6. Products are available at the lower price in the domestic and foreign
markets.
7. Further liberalization leading to huge import.
8. Increasing unhealthy competition.
9. Competition from new private firms.
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MACHINE TOOLS Ltd, Kalamassery.
Conclusion
CONCLUSION
Globalization and Liberalization has brought us in a competitive environment,
where only the fittest can survive. The success depends upon how an organization can
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MACHINE TOOLS Ltd, Kalamassery.
cope up with changes taken place and how effectively they can use the organization’s
resources so as to achieve an effective output. Management of resources is a vital and
central activity in any organization. Management, whether it is in industry, civil service,
defense or in any other discipline is growing complex day by day.
The study conducted at HMT Machine Tool Ltd, Kalamassery helps to
understand complexity of management functions, apart from class room studies. The
study gave an idea about the performance of management functions which led to its
success. The management, practices gave the real picture of functions like planning,
organizing, staffing, controlling, co coordinating etc. The social responsibility of
management, business ethics, strategy, decision making, organization development
technique etc gave the image of professional management. HMT is doing great help to
nation by providing very important and essential equipment to various industrial
concerns.
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MACHINE TOOLS Ltd, Kalamassery.
Bibliography
BIBLIOGRAPHY
Books
Kothari C R, (2006), Research Methodology, New Delhi: New
Age International Publishers
Uma Sekaran (2006), Research Methods For Business:A Skill
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MACHINE TOOLS Ltd, Kalamassery.
Building Approach, New Delhi: John Wiley and sons, Inc.
Aswathappa K(2005), Human Resource and Personnel
Management, New Delhi: Tata Mc Graw Hill.
Kotler Philip & Lane Kevin Keller (2005), Marketing
Management, 12th Edition, New Delhi: Prentice Hall of India
Pvt, Ltd
Pandey I M (2009), Financial Management, 9th edition,
New Delhi: Vikas Publishing House Pvt Ltd
Websites
www.machine [email protected]
www.google.com
www.wikipedia.com
www.hmti.com
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