148
MACHINE TOOLS Ltd, Kalamassery. introduction CENTRE FOR MBA, KANNUR UNIVERSITY 1

KARAN

Embed Size (px)

Citation preview

Page 1: KARAN

MACHINE TOOLS Ltd, Kalamassery.

introduction

CENTRE FOR MBA, KANNUR UNIVERSITY 1

Page 2: KARAN

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

Page 3: KARAN

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

Page 4: KARAN

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

Page 5: KARAN

MACHINE TOOLS Ltd, Kalamassery.

INDUSTRY PROFILE

MACHINE TOOL INDUSTRY

CENTRE FOR MBA, KANNUR UNIVERSITY 5

Page 6: KARAN

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

Page 7: KARAN

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

Page 8: KARAN

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

Page 9: KARAN

MACHINE TOOLS Ltd, Kalamassery.

COMPANY PROFILE

VISION

CENTRE FOR MBA, KANNUR UNIVERSITY 9

Page 10: KARAN

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

Page 11: KARAN

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

Page 12: KARAN

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

Page 13: KARAN

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

Page 14: KARAN

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

Page 15: KARAN

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

Page 16: KARAN

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

Page 17: KARAN

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

Page 18: KARAN

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

Page 19: KARAN

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

Page 20: KARAN

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

Page 21: KARAN

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

Page 22: KARAN

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

Page 23: KARAN

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

Page 24: KARAN

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

Page 25: KARAN

MACHINE TOOLS Ltd, Kalamassery.

Figure 3 AUTOMANN 26 CNC LATHE

Figure 4 CRAFTMASTER high speed precision lathe

CENTRE FOR MBA, KANNUR UNIVERSITY 25

Page 26: KARAN

MACHINE TOOLS Ltd, Kalamassery.

Figure 5 STALLION 100S

Figure 6 SOM 136 PRINTING MACHINE

CENTRE FOR MBA, KANNUR UNIVERSITY 26

Page 27: KARAN

MACHINE TOOLS Ltd, Kalamassery.

Figure 7 SUPER TURN 20 CNC TURNING CENTER

CENTRE FOR MBA, KANNUR UNIVERSITY 27

Page 28: KARAN

MACHINE TOOLS Ltd, Kalamassery.

Figure 8 STALLION 200 TURNING CENTER

Figure 9 SOM 536 PRINTING MACHINE

CENTRE FOR MBA, KANNUR UNIVERSITY 28

Page 29: KARAN

MACHINE TOOLS Ltd, Kalamassery.

FUNCTIONAL DEPARTMENTS

CENTRE FOR MBA, KANNUR UNIVERSITY 29

Page 30: KARAN

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

Page 31: KARAN

MACHINE TOOLS Ltd, Kalamassery.

Human resource department

HUMAN RESOURCE DEPARTMENT

CENTRE FOR MBA, KANNUR UNIVERSITY 31

Page 32: KARAN

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

Page 33: KARAN

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

Page 34: KARAN

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

Page 35: KARAN

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

Page 36: KARAN

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

Page 37: KARAN

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)

Page 38: KARAN

MACHINE TOOLS Ltd, Kalamassery.

Finance department

FINANCE DEPARTMENT

CENTRE FOR MBA, KANNUR UNIVERSITY 38

Page 39: KARAN

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

Page 40: KARAN

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

Page 41: KARAN

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

Page 42: KARAN

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

Page 43: KARAN

MACHINE TOOLS Ltd, Kalamassery.

CENTRE FOR MBA, KANNUR UNIVERSITY 43

Page 44: KARAN

MACHINE TOOLS Ltd, Kalamassery.

PRODUCTION AND PLANNING

DEPARTMENT

PRODUCTION AND PLANNING DEPARTMENT

CENTRE FOR MBA, KANNUR UNIVERSITY 44

Page 45: KARAN

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

Page 46: KARAN

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

Page 47: KARAN

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

Page 48: KARAN

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

Page 49: KARAN

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

Page 50: KARAN

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

Page 51: KARAN

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

Page 52: KARAN

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

Page 53: KARAN

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

Page 54: KARAN

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

Page 55: KARAN

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

Page 56: KARAN

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

Page 57: KARAN

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

Page 58: KARAN

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

Page 59: KARAN

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

Page 60: KARAN

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

Page 61: KARAN

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

Page 62: KARAN

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

Page 63: KARAN

MACHINE TOOLS Ltd, Kalamassery.

PURCHASE DEPARTMENT

PURCHASE DEPARTMENT

CENTRE FOR MBA, KANNUR UNIVERSITY 63

Page 64: KARAN

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

Page 65: KARAN

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

Page 66: KARAN

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

Page 67: KARAN

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

Page 68: KARAN

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

Page 69: KARAN

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

Page 70: KARAN

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

Page 71: KARAN

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

Page 72: KARAN

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

Page 73: KARAN

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

Page 74: KARAN

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

Page 75: KARAN

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

Page 76: KARAN

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

Page 77: KARAN

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

Page 78: KARAN

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

Page 79: KARAN

MACHINE TOOLS Ltd, Kalamassery.

mtk assembly department

MTK ASSEMBLY

CENTRE FOR MBA, KANNUR UNIVERSITY 79

Page 80: KARAN

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

Page 81: KARAN

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

Page 82: KARAN

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

Page 83: KARAN

MACHINE TOOLS Ltd, Kalamassery.

Pmk manufacturing department

PMK MANUFACTURING

OBJECTIVES

CENTRE FOR MBA, KANNUR UNIVERSITY 83

Page 84: KARAN

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

Page 85: KARAN

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

Page 86: KARAN

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

Page 87: KARAN

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

Page 88: KARAN

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

Page 89: KARAN

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)

Page 90: KARAN

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.

Page 91: KARAN

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

Page 92: KARAN

MACHINE TOOLS Ltd, Kalamassery.

CENTRE FOR MBA, KANNUR UNIVERSITY 92

Page 93: KARAN

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

Page 94: KARAN

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

Page 95: KARAN

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

Page 96: KARAN

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

Page 97: KARAN

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

Page 98: KARAN

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

Page 99: KARAN

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

Page 100: KARAN

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

Page 101: KARAN

MACHINE TOOLS Ltd, Kalamassery.

Findings

CENTRE FOR MBA, KANNUR UNIVERSITY 101

Page 102: KARAN

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

Page 103: KARAN

MACHINE TOOLS Ltd, Kalamassery.

Suggestions

CENTRE FOR MBA, KANNUR UNIVERSITY 103

Page 104: KARAN

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

Page 105: KARAN

MACHINE TOOLS Ltd, Kalamassery.

Swot analysis

SWOT ANALYSIS

CENTRE FOR MBA, KANNUR UNIVERSITY 105

Page 106: KARAN

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.

CENTRE FOR MBA, KANNUR UNIVERSITY 106

Page 107: KARAN

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.

CENTRE FOR MBA, KANNUR UNIVERSITY 107

Page 108: KARAN

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

CENTRE FOR MBA, KANNUR UNIVERSITY 108

Page 109: KARAN

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.

CENTRE FOR MBA, KANNUR UNIVERSITY 109

Page 110: KARAN

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

CENTRE FOR MBA, KANNUR UNIVERSITY 110

Page 111: KARAN

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

CENTRE FOR MBA, KANNUR UNIVERSITY 111