3.2 ORGANISATIONAL STRUCTURE

An organization structure is mostly hierarchical concepts of subordination of entities

that collaborate and contribute to serve our common aim. Organizations are a variant of

clustered entities. The structure of an organization is usually set up in many styles,

department on their objectives and ambience.

3.2.1 CORPORATE STRUCTURE

The structure of an organization will determine the modes in which it shall operate and

will perform. Organization in a formal sense refers to a collectively of persons engaged in

pursuing specified objectives. It is referent to as the social system encompassing all

formal relations. In operations sense organization can be considered as consisting of

dimensions of work among people and coordination of their activities towards some

common objectives.

The day to day management of the company is entrusted to the Chairman and Managing

Director and he is assisted by Functional Directors and other officers of the company.

The Chairman and Managing Director, Functional Director and other officers exercise

their decision making powers as per the delegation of powers approved by the Board of

Directors.

The corporate layout helps to define all the areas of responsibility within the company.

The accounting department is understood to handle all financial matters, such as paying

the bills of the company and also issuing invoices for services rendered. The Marketing

department works to ensure there are efforts to market the goods and services produced to

the consumer market. Provisions for executive, managerial, and administrative matters

are also normally accounted for in a corporate structure, so that everyone in the

organization knows where a given issue should be addressed.

18

Finance Department

Source:Company Records

Fig 3.1:Corporate Structure

19

Personnel and Administration Department

Materials Department

Engineering and Design Department

Calibration Department

EDP Department

Marketing Department

Research and Development Department

Planning Department

Production Department

Managing Director

3.2.2 BUISNESS AND DEPARTMENTAL STRUCTURE

KELTRON’s history is a saga of innovation in electronics. From being a pioneer in 1973,

to the role of a trend-setter today, Keltron has been the catalysis for the development of

electronics industry in Gods own country- Kerala. Within five years of its inception,

Keltron had set up a production centre in every district of the State. More than 5,000

people were engaged directly or indirectly by Keltron for the manufacture of electronic

goods. The model of a State-owned electronics corporation was so successful that several

other States in India followed suit - launching their own Electronics Corporations.

3.2.2.1 PERSONNEL DEPARTMENT

The Personnel Department aims at ensuring a steady source of Human Resource who can

contribute to the successful enterprise. The department deals with the management of

human resource. The very existence of an undertaking depends upon the competent,co-

operative and dedicated performance of the personnel.Personnel functions of the

company consists of several Managerial and Operative Functions. The Managerial

Functions are Planning, Organizing, Directing and Controlling of Human Beings. The

Operative functions relate to ensuring right people for the right jobs at the right time.

These functions include Procurement,Development, Compensation and Maintenance of

employees. KCCL has a very efficient Personnel and Administration Department.

Manager is the staff Officer in the Organization. He gives advice to the Deputy

Administration Officer. Assistant Personnel officer gives direction to the Security

Officer. The Security Guards are under the control of Security Officer. There are two

assistants under Assistant Personnel Officer. For meeting the requirements of employees,

management must decide beforehand as to what type of men is to be recruited and in

what number they are required. The first problem is solved by Job Analysis and the

second problem is tackled through Man Power Planning.

20

Organizational Structure Of Personnel And Administration

Department

Source:Company Records

Fig 3.2:Personnel and Administration Department

21

Senior Manager(Hod)

Senior Personnel Officer

Personnel Officer Administrative Officer

Clerical Staff

Security Security

Clerical Staff

3.2.2.2 FINANCE DEPARTMENT

There exist an indispensible relationship between finance from production, marketing and

other functions. Almost all the business activities, directly and indirectly, involve

acquisition and use of fund. Recruitment and promotion of employees in production is

clearly a responsibility of the production department; but it requires payment of wages,

salaries and other benefits, and thus involves finance. Thus finance can be termed as the

life blood of any enterprise . Sales forecasting comes under the purview of marketing, but

it requires outlay of cash and therefore affects financial resources. A firm perform finance

functions simultaneously and continuously in the normal course of the business. They do

not occur in a sequence.

Source:Company Records

Fig 3.3:Finance Department Structure

22

HEAD OF THE DEPARTMENT

GENERAL ACCOUNTANT

SALES ACCOUNTANT

COSTING ACCOUNTANT

PERSONAL SECRETARY

OFFICER IN CHARGE

CASHIER ACCOUNT ASSISTANT

3.2.2.3 MARKETING DEPARTMENT

At KCCL the marketing department act as a guide, and lead the company's other

departments in developing, producing, fulfilling, and servicing for their customers.

Communication is vital and the marketing department typically has a better

understanding of the market and customer needs. The goals and guidelines set by the

marketing are in line with the mission and vision of the company. The upper management

is also involved in and endorses co-operation by all departments in the following and

implementing the plan and integration a consistent message into all communication

channel.

Source:Company Records

Fig3.4:Marketing Department Structure

23

HOD (MARKETING DEPARTMENT)

MARKETING EXECUTIVES

CLERICAL STAFFS

3.2.2.4 MATERIALS DEPARTMENT

Stores and materials are the most important department in an industry. This department

facilitates the smooth functioning of production. Materials contribute to the quality of the

end product.The main objective of this department is to procure raw

materials/components/consumables as per procurement plans based on production

requirement schedule. This department services the raw materials till it is issued for

manufacturing.

Source:Company Records

Fig 3.5:Materials Department Structure

24

MATERIALS DEPARTMENT

STENO DEPUTY MANAGER

PURCHASE STORES

ASST. PURCHASE

ASST. PURCHASER

RAW MATERIAL

FINISHED GOODS

ALL IMPORTS ALL INDEGENEOUS

PURCHASE ASSISTANTS

PURCHSE ASSISTANTS

HELPER HELPER

STORE OFFICER STORE OFFICER

ASSISTANT SESSION OFFICER

ASSISTANT SESSION OFFICER

3.2.2.5 RESEARCH AND DEVELOPMENT DEPARTMENT

R&D department plays a crucial role in electronic industry. Innovation and quality

control are major concerns of this department. If the company has to survive in the

present highly competitive market, research and development has to come out with

innovative product and constant upgradation of technology. KCCL allocates 05%-1% of

turnover for R&D purposes. Research is going in the development of technology by

reducing the size of the component per with the Japanese product. The department is

trying for the vertical integration of the manufacturing process.

Source:Company Records

Fig 3.6:Research and Development Structure

25

HOD (R&D)

SIC PRODUCT DEVELOPMENT

SIC ELECTROLYTIC DEVELOPMENT

SENIOR TYPIST

TECHNICIAN APPRENTICE

TECHNICIAN APPRENTICE

3.2.2.6 PLANT ENGINEERING DEPARTMENT

In KCCL, Plant Engineering Department is mainly concerned with the maintenance of

equipment in the different departments (production).Maintenance is that function

manufacturing management of that is concerned with the day to day problem of keeping

the physical plant in good operating condition. The main function of plant department is

for maintenance of machine and also proving controlled environment for production

activities.

Source:Company Records

Fig3.7:Plant Engineering Department Structure

26

HOD

ASST.MANAGER

SHIFT ENGINEER

ASST. ENGINEER

TECHNICIANS

HEAD OF THE DEPARTMENT

3.2.2.7 PRODUCT PLANNING DEPARTMENT

Planning is "Task number one "of Keltron. It is the determination of a course of action to

achieve a desired result. Planning department is the most basis of all other department.

Since it involves deciding of future course of action. To plan is to look ahead and chart

out the future course of operation."FIRST PLAN YOUR WORK,AND THEN WORK

YOUR PLAN" Is the main policy of planning department. Planning is the process of

thinking through and making explicit the strategy, action and relationships necessary to

accomplish necessary to accomplish an overall objectives or purpose.

Source:Company Records

Fig 3.8:Product Planning Department Structure

27

OFFICER IN CHARGE

TYPIST/ASISTANT

ASSISTANT ASSISTANT TYPIST/ASSISTANT

3.2.2.8 CALIBRATION DEPARTMENT

Calibration is the operation of determining the values of the errors of measuring devices

to traceable standards. It can be defined as measurements that are made using a variety of

instruments ranging from simple to extremely sophisticated. This department ensures that

all the measuring instruments are giving valid and useful data.

Source:Company Records

Fig 3.9:Caliberation Department Structure

28

HOD

OIC/SIC

TECHNICIAN TECHNICIAN

3.2.2.9 DATA PROCESSING DEPARTMENT

Computer has now become an essential part of organized information processing because

of the technology and volume of data to be processed and the need for getting processed

information quickly. Information processing is a major societal activity and computer

data processing has helped in areas like finance, marketing, HR etc.In KCCL, the EDP

department was started in 1988 with self entered computer. In 1994, the company

installed Local Area Network (LAN) with IS terminals. The management plan is to install

a separate system to each department by connecting it to central EDP unit.This

department acts as a supporting departments to all the other departments. Through the

EDP department the company has achieved lots of new facilities and hence has saved

time to a great extent. This was made possible with the help of new and improved

methods, keeping records of all the required items and so on. The software was

developed in the company itself, a Disk Operating System is adopted.

Source:Company Records

Fig 3.10:EDP Department Structure

29

HOD

COMPUTER OPERATIONS

OPERATORS OPERATORS OPERATORS

3.2.2.10 PRODUCTION DEPARTMENT

Production is the process of conversion of a set of input into a specified set of output.ie

transformation of a range of inputs into required output having the requisite quantity

level. The set of inter related management activities which are involved in manufacturing

certain product is called Production Management. The main aim of the business system is

to produce the end products either in the form of goods or services economically,

utilizing the available resources, and thus satisfying the customer needs. Production is the

back bone of any industry. Keltron tries to fulfill its duty by high quality products by

producing effectively and efficiently at low cost so as to provide its customer maximum

satisfaction. The demand for the capacitors won't be the same through the year. It may be

different monthly schedules. The work order is issued to meet the specific demand for the

customer. A batch production order is issued for keeping the goods in stores or when a

number of customers order for the same product.

Source:Company Records

Fig 3.11:Production Department Structure

30

HEAD OF THE DEAPRTMENT

OFFICER IN CHARGE

ASSISTANT ASSITANT

3.3 FUNCTIONAL ANALYSIS

A department is a work group combined for performing certain functions of similar

nature. Keltron Component Complex Limited is a production and services oriented

organization composed of different departments depends other departments for its

operation. All the departments are controlled by Joint General Manager (JGM), who is

the unit chief of the organization.

3.3.1 PERSONNEL DEPARTMENT

KCCL has a very efficient Personnel and Administration Department. Manager is the

staff Officer in the Organization. He gives advice to the Deputy Administration Officer.

Assistant Personnel officer gives direction to the Security Officer. The Security Guards

are under the control of Security Officer. There are two assistants under Assistant

Personnel Officer.

Manpower

The total manpower of the company 500 is given as split up into category wise as

follows:

Total Permanent employees: 315

Apprentices : 130

Contract workers : 55 and other casual workers (daily wage @ 250/day)

The range of experience of all the employees is from 12-25 years.

The key technical personnel are trained by foreign collaborators or suppliers

of the machinery.

Administration Of Standing Orders

In KCCL, Standing Orders Act, 1946 is applicable to workmen in the industrial

employment. This Standing Order defines Company Management, workmen, workmen

31

trainee, workmen's classification, address and other particulars, probation, seniority,

temporary appointment, transfer, resignation, salary, leave etc.

Functions of Personnel Department

The main functions performed by the Personnel and Administration Department in

KCCL are as follows:

Man Power Planning

Recruitment and Placement of employees.

Co-Ordination and Training of employees

Keeping Personnel Record of employees

Arrange in-house and external training to employees

Time Keeping

Performance Appraisal

Promotion of employees

Wage Administration

Administration of Standing Orders and adopting welfare measures.

Manpower Planning

For meeting the requirements of employees, management must decide beforehand as to

what type of men is to be recruited and in what number they are required. The first

problem is solved by Job Analysis and the second problem is tackled through Man Power

Planning. Manpower Planning is the systematic and continuing process of analyzing

organizations. Workforce requirements under changing conditions and developing

personnel policies appropriate to the long term effectiveness of the

organization.Therefore, a proper and systematic manpower program requires proper

forecasting and planning for future. It should consider developing manpower

requirements for the whole organization, to create and evaluate the manpower inventory

and to develop required talents among the employees selected for promotions.

Recruitments And Placements

32

Recruitment is the process of searching for prospective employees and stimulating

them to apply for jobs in the organization. Placement is the process of assigning the

selected candidate with the most suitable jobs in terms of job requirements.As KCCL is a

Government Company, recruitment of candidates is done through employment exchange.

For executive posts the company approaches professional and employment exchange,

Trivandrum and local employment exchanges.As and when a vacancy arises, Personnel

and Administration Department notifies it to employment exchanges. For executive posts

the company approaches professional employment exchanges, Trivandrum local

employment exchanges.Then the personnel department publishes vacancies in leading

newspapers. After receiving the applications from the candidates, the department goes for

scrutinizing them. The company calls the selected candidates for interview. For this the

company has a Selection Board, represented by concerned departmental head, a nominee

of the Government of Kerala and the Personnel Manager. This board conducts interviews

and selects suitable candidates. Then the company gives appointment order to the

selected candidate along with terms and conditions for appointment. If the person is

willing to abide by the terms and conditions he is directed to sign and return one of the

copies of the Order.

Training

Training is the act of increasing the knowledge and skill of an employee for doing

a particular job. The purpose of training is to bring about improvement in the

performance of work. It includes the learning of such techniques as are required for the

better performance of work. It includes the learning of such techniques as are required for

the better performance of definite task.In KCCL, internal as well as external training is

given to employees. Fresh hands will be selected as trainees for a period of one year. For

existing employees, it is conducting refresher training by way of lectures, work

educational classes, external training etc.

Induction Or Orientation Training

33

There are two phases of Induction training program. The first phase is generally

conducted by the Personnel Department. It is concerned with giving the new employees

friendly welcome, explaining the matters concerned with the Company's background,

products, health and welfare plans etc. The Head of the Department under whom he has

to work conducts the second phase of induction program. The employees are given

information regarding production, work rules, working conditions.On first appointment,

employees are initially given on- the-job training. Due to technological developments and

improved techniques of management and production the training initially given will

become out of date and arises the need to give new training. For this regional Worker's

Training Education Center Officers come to KCCL.All the details regarding the training

given to employees are recorded in KCCL for future reference. Details such as name of

employees, date of birth, qualification, type of training, department in which he is

working, joining date, training period etc are recorded.

Performance Appraisal

Performance appraisal is the systematic evaluation of an individual's performance

in the job and his potential for development. Appraisal is the evaluation of work quality.

It is the systematic and objective way of judging the relative work or ability of an

employee in performing his job. Ordinarily the evaluation is done by immediate

supervisors. So it is a technique used to know the work of an employee qualitatively and

quantitatively on- the-job in comparison with other employees. It is one of the oldest and

usual practices of management.

In KCCL at the end of training period the trainees are observed according to his

performance during the training period. The Personnel Department provides

performances forms for self appraisal, executive appraisal and annual performance

appraisal. Self appraisal form is for self assessment of the employees. The other two are

filled by the concerned department supervisors. Depending upon the performance of the

trainee the personnel department decides whether the probation period is to be extended

or not. On the basis of his performance during the probation period, the department then

decides about the regular placements of the employee.

34

Time Keeping

Every employee is given a separate card with specific number having four digits. The

workers, employees, supervisors or executive have different serial number. A master role

is kept by the organization. Electronic punching system in KCCL is used to record the

time of entry and exist of each employee. Maximum half an hour late is permitted to

every employee. In the record half late coming is not allowed.

Working Hours

In KCCL Ltd, there are 3 shifts of works. The production process starts on Monday and

ends on Saturday.

The three shift timing are:

General shift is from - 8:30am to 4:30 pm

The first shift - 7:00am to 3:00 pm

The second shift - 3:00pm to 11:00pm

The third shift - 11:00 pm to 7:00 am

Wages And Salaries

In KCCL Ltd, three categories of employee are there i.e. Executives,

Supervisors and Workman. A Senior worker will get a total salary around Rs.12000 per

month. While a newly inducted workmen will get a minimum remuneration of Rs. 7000

per month. Similarly supervisor category will get a salary of around 14000 per month.

The junior executive will get Rs. 16000 per month and the Senior Executive will get Rs.

25,000 pm. The DA pattern of workmen is different from those in executive and

supervisor category. The DA for workmen is based on the consumer price index at All

India level. The DA of executives and supervisors will be based on Kerala Government

Norms.

Medical Re-Imbursement

35

All employee are eligible for medical reimbursement scheme. This scheme also extends

to family members wholly depended on the employee. The amount of the benefits is

given on the basis of service of employees.

Group Insurance Scheme

The group insurance scheme is applicable for every employees working in the

organization.

Provident Fund

Provident fund is the fund that provides for future. This fund is created by the amount

deducted from the salary of the employee every month to which the management adds its

own share at a certain rate. When the employee retires from his service, receives the full

amount standing in the credit of his fund which includes periodical interest added.

Bonus

In KCCL, yearly bonus is given to employees at a minimum rate of 8.33 on salary up to

Rs 3500 per month.The salary includes Basic Pay and Dearness Allowances. Festival

allowances should be given to employees at the time of festival, marriage allowances,

home loan, vehicle loan are also provided. Salary is either given directly to employees or

deposited in the bank as per the instructions.

Welfare Activities

In KCCL, the employees are provided with the following welfare measures.

Washing facility, bathroom and toilet facility

Facility for sitting, canteen facility.

Facility for drying clothes

Trade Unions

36

Trade unions are the organizational effort of workers in order to secure their individual

interest. There are four trade unions operating in KCCL. They are:

INTUC (Indian National Trade Union Congress)

CITU (Center of Indian Trade union)

KEO (Keltron Employee Organization)

DKEU (Democratic Keltron Employee Union)

Grievance Handling

If an employee have any grievance regarding any matter, he can approach his immediate

supervisor. The employee can simultaneously hand over a written complaint to the HOD.

If the employee is still not satisfied with the actions taken by the supervisor or HOD with

respect to the grievance, he has the right to approach the MD regarding the matter,

through proper channel. Or he can file a written complaint to the chairman of the

company.

Discipline

All workers are covered by the Standing Orders. Misconduct in violation of the Standing

Orders, under which he is covered, disciplinary action will be taken.In the initial stage a

department level enquiry is carried out. Based on the report of the HOD, the employee is

issued with a memo, he should prove why disciplinary action should not be taken against

him. This information should reach the management within time by the employee.

If the reply submitted by the employee is not convincing, a Memo of charges is

issued against him specifying relevant clauses of misconduct, simultaneously the MD can

order an enquiry appointing an officer to investigate the case. On receipt of the report

MD will decide the punishment to be awarded according to the findings.Apart from the

workman, the executives of the company are bound by the Conduct, Appeal and

Discipline rules 1986 of the company.Disciplinary action will be taken against the

Executives, who are also in line with the proceedings under Standing Orders.

Career Planning

37

There is a promotion policy applicable to workmen and non-workman. The future

promotions of the employee are guided by the provisions of the promotion policy. For

Promotion, Performance and Attendance of the employee will be closely monitored.

There is a proportion between workmen and executives for considering promotion from

workmen to executives. In the case of executives majority of the case are vacancy

limited.

3.3.2 FINANCE DEPARTMENT

There exist an indispensible relationship between finance from production, marketing and

other functions. Almost all the business activities, directly and indirectly, involve

acquisition and use of fund. Recruitment and promotion of employees in production is

clearly a responsibility of the production department; but it requires payment of wages,

salaries and other benefits, and thus involves finance. Thus finance can be termed as the

life blood of any enterprise. Sales forecasting comes under the purview of marketing, but

it requires outlay of cash and therefore affects financial resources. A firm perform finance

functions simultaneously and continuously in the normal course of the business. They do

not occur in a sequence.

Functions Of The Finance Department

Preparation and maintenance of accounts, documents and records.

Recording of bank transactions like cash withdrawals ,maintains details of

check payments etc.

Maintenance of commercial accounts, income tax etc.

Payment of company bills like telephone, electricity and monthly returns of

professional tax, sales tax and CST and VAT.

Preparation of budgets for the future.

Evaluation of audit

Fixed assets registers maintenance.

Salary preparation.

Key Financial Activities

38

1)Financial analysis, Planning and control.

Assessing the financial performance and condition of the firm.

Forecasting and planning the financial structure

To ensure that the actions of the manager are according to the goals of the

firm.

2)Management of the Firms Asset Structure

Managing the liquid resources.

Debt and dividend policy.

Determine the capital budget.

Negotiating and developing relation with various suppliers.

Establishing on the basis of current asset value SBI-KANNUR and

CATHOLIC SYRIAN BANK gives cash credit facility to Keltron.

Role Of Finance Manager

The role of Finance Manager in the company is an important one. The function of the

finance manager is not confined to the management and making of the accounts but it

also plays a major role in dividend decisions, capital budgeting decisions, capital

structure outlay of the firm, decision related to the merger and acquisitions, and all the

investment decisions of the firm. Thus the finance manager plays an important role in any

business enterprise. Formulating budget estimates in support of program objectives;

presenting and justifying budget requests; development of plans for allocating resources;

monitoring program execution; reviewing and analyzing funding documents; conducting

comparative analyses to examine trends; reviewing budget policy and statutes to ensure

compliance.Reviewing and interpreting accounting and financial management policy,

procedures, standards and statutes to ensure compliance; monitoring and examining

accounts, specific appropriations or financial records for account status and reporting

requirements.

ALLOCATION OF FUNDS TO VARIOUS DEPARTMENTS

39

As per the demand for the production orders from the clients, the finance

department will allocate funds to the various departments. When a need occurs for any

department, it is sanctioned by the finance department.

BUDGETING METHOD

Budget for the succeeding year is prepared and presented by the Board Of

Directors during the month of March and April, as soon as the budget from the

Government of India has been published. It is prepared by the finance department on the

basis of the sales projection provided by the marketing department. Raw materials

requirements are estimated on the basis of the comparison with the previous year's

figures.

CONTROL SYSTEM

The company has well defined and laid out rules and procedures for all

transactions. The Company's internal control system comprises audit and compliance by

an in-house Internal Audit Division supplemented with internal audit checks The

transactions are internally audited by an outside firm of chartered accountants. The

internal auditors independently evaluate the adequacy of the internal controls and

concurrently audit the majority of the transactions in value terms. Apart from normal

audits by CAG,Statutory Audit and transaction audit is also carried out by them.

DIVIDEND

The company has regularly paid dividend to its shareholders since 1985-1986.The last

time it paid dividend of 10% in the year 1993-94.Since then it is not able to pay dividend.

FUTURE PLANS

The company has already submitted proposals to the Government of Kerala in the

form of projects for enhancement of the product range and capacity for the manufacturer

40

of high CV value capacitors and also for modernization/upgradation of the Ageing &

Testing facilities. The company expects a substantial increase in production, turnover and

profitability after the receipt of approval and funding for these projects from the

Government.

3.3.3 MARKETING DEPARTMENT

At KCCL the marketing department act as a guide, and lead the company's other

departments in developing, producing, fulfilling, and servicing for their customers.

Communication is vital and the marketing department typically has a better

understanding of the market and customer needs. The goals and guidelines set by the

marketing are in line with the mission and vision of the company. The upper management

is also involved in and endorses co-operation by all departments in the following and

implementing the plan and integration a consistent message into all communication

channel.

ROLE OF MARKETING MANAGER

Acceptance of customer complaints and suggestion.

Creation of Order Files.

Evaluating customer's satisfaction

Forecasting the market trends.

Fixing adequate price for the products.

Conducting Marketing Research.

FUTURE PLANS

Online customer feedback systems are going to be installed soon.

Marketing Research are planned to conduct soon.

3.3.4 MATERIALS DEPARTMENT

Stores and materials are the most important department in an industry. This department

facilitates the smooth functioning of production. Materials contribute to the quality of the

41

end product. Such being the importance of the materials it is desirable, for an industrial

establishment to have a centralized authority vested with the responsibility of planning,

procuring, preserving, handling, usage and other related aspects. The main objective of

this department is to procure raw materials/components/consumables as per procurement

plans based on production requirement schedule. They also procure indirect

parts/products/consumables or service needed for all other process. This department

services the raw materials till it is issued for manufacturing.In KCCL, the purchase

department and the stores department under the material department.

FUNCTIONS

Identification of the requirements.

Selection of proper source of supply.

Deciding on quality and quantity.

Selecting the supplier.

Placing purchase order.

Arranging transportation of materials and goods.

Receiving the goods and materials and sending them to the stores.

Accept the goods after getting quality approval.

3.3.5 RESEARCH AND DEVELOPMENT DEPARTMENTR&D department plays a crucial role in electronic industry. Innovation and quality

control are major concerns of this department. If the company has to survive in the

present highly competitive market, research and development has to come out with

innovative product and constant upgradation of technology. KCCL allocates 05%-1% of

turnover for R&D purposes. Research is going in the development of technology by

reducing the size of the component per with the Japanese product. The department is

trying for the vertical integration of the manufacturing process.

3.3.6 PLANT ENGINEERING DEPARTMENT

42

In KCCL, Plant Engineering Department is mainly concerned with the maintenance of

equipment in the different departments (production).Maintenance is that function

manufacturing management of that is concerned with the day to day problem of keeping

the physical plant in good operating condition. The main function of plant department is

for maintenance of machine and also proving controlled environment for production

activities.

The maintenance work includes:

Mechanical Work Electrical Work Electronics Work Civil Works

Civil works are usually given for contract work since the company does not have

sufficient engineers for that:

There are mainly 2 types of maintenance namely:

Preventive maintenance.

Break down maintenance.

In preventive maintenance, the maintenance activity undertaken before the machine or

equipment failed. In KCCL, the preventive maintenance service is done as per a regular

time table (usually in a specified time period).

In breakdown maintenance, it is done if the machine could not produce quality products

as per the specifications or if the machine is broken down.

Different toy books are maintained for different machines. Reward is maintained and it is

submitted to the HOD of the concerned department for verification.

3.3.7 PRODUCT PLANNING DEPARTMENT

43

Planning is "Task number one "of Keltron. It is the determination of a course of action to

achieve a desired result. Planning department is the most basis of all other department.

Since it involves deciding of future course of action.

OBJECTIVES

Maximize the available resources and ensure optimum productivity and profits.

To reduce wastage of resources.

Crises management and to avoid mistakes.

Inventory requirements should not be overstocked.

No unnecessary storage of finished goods.

The work order prepared is analyzed and the pending work order list should be

given.

In KCCL, planning is done in departments like materials, Production, purchase

department, Marketing department etc. It has direct link between these departments.

Marketing department will prepare an annual budget based on demand, trend, prices

existing in the market. By using this, the planning department prepares the usual yearly

production plan. This plan is send to MD for consent, to commence production. Besides

yearly production plan,3 months production plan and monthly production plan are

prepared depending upon the requirements of the market. The prepared plan will be then

forwarded to the materials department, production department checks and make sure that

the plant is capable of producing concerned product upon the need specified. The

materials department checks the availability of raw materials in the stores. If it is not

available, the purchase department will make arrangements for purchasing the materials

and after the materials arrived, special work order is given for production departments.

3.3.8 CALIBERATION DEPARTMENT

44

Calibration is the operation of determining the values of the errors of measuring devices

to traceable standards. It can be defined as measurements that are made using a variety of

instruments ranging from simple to extremely sophisticated. This department ensures

that all the measuring instruments are giving valid and useful data.

ELEMENTS IN CALIBRATION DEPARTMENT

Adequacy of standard.

Calibration Standards.

Traceability.

Recall system.

Calibration Report.

Labeling Practice.

Calibration intervals and adjustment techniques

Environmental Conditions.

Outside calibration sources.

3.3.9 DATA PROCESSING DEPARTMENT

In KCCL, the EDP department was started in 1988 with self entered computer. In 1994,

the company installed Local Area Network (LAN) with IS terminals. The management

plan is to install a separate system to each department by connecting it to central EDP

unit.This department acts as a supporting departments to all the other departments.

Through the EDP department the company has achieved lots of new facilities and hence

has saved time to a great extent. This was made possible with the help of new and

improved methods, keeping records of all the required items and so on. The software was

developed in the company itself, a Disk Operating System is adopted.

3.3.10 PRODUCTION DEPARTMENT

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Production is the process of conversion of a set of input into a specified set of output.ie

transformation of a range of inputs into required output having the requisite quantity

level. The set of inter related management activities which are involved in manufacturing

certain product is called Production Management. The main aim of the business system is

to produce the end products either in the form of goods or services economically,

utilizing the available resources, and thus satisfying the customer needs. Production is the

back bone of any industry. Keltron tries to fulfill its duty by high quality products by

producing effectively and efficiently at low cost so as to provide its customer maximum

satisfaction. The demand for the capacitors won't be the same through the year. It may be

different monthly schedules. The work order is issued to meet the specific demand for the

customer. A batch production order is issued for keeping the goods in stores or when a

number of customers order for the same product

FACTORS OF PRODUCTION IN KCCL

The main raw materials used for the production of Aluminum Electrolytic Capacitors are:

Etched aluminum foils 30-60 microns thick.

Formed aluminum foils and anodized etched aluminum foils 50-90 microns.

Condenser paper

Aluminum Cans

Lead Tabs

Electrolytes

Rubber Bungs

Glue

PVC heat shrinkable sleeve

Aluminum and copper plated wire.

MANUFACTURING PROCESS

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1.STITCHING AND WINDING

Stitching is the process by which, a thin needle are stitched to the anode and cathode foil.

Aluminum foil of 40m to 110m has both anode and cathode foil. Here in Keltron

Aluminum Oxide is sent for etching and forming. The etched and formed aluminum foil

is found either with cello tape or Glue. Every process is done automatically. Both the

aluminum and the paper are winded together. This is done so that the paper can sink in

the chemical and the electrolyte is formed. The paper used here is tissue type. This is later

taken into tank and chemical is fitted from there. All this is done in an air conditioned

room so as to avoid contamination and also to maintain the temperature level within the

plant.

2.ROLLING

While rolling, the anode foil are separated with a special thick paper and rolled according

to the specification for different capacitor. The length and breadth of the foils to be rolled

will be different and this defines the character of the capacitor; i.e. for higher volt and

higher temperature capacitors the foil will be broader and longer than that of the low volt

and temperature capacitors.

3.IMPREGNATION

The rolled up form will not have any value or specification. For this stitched and rolled

capacitors are kept in solutions which is called electrolyte. This process of keeping the

capacitors dipped in the electrolyte is to get the desired value. The time required for

impregnation defines the voltage of the capacitors it will take at least two hours.

4.SEALING

After impregnation, the above semi finished goods are send for sealing and sealing. The

impregnated capacitor will be manually put into an aluminum can with one end open.

This open will be closed using a rubber bunk. The rubber bunk will be having two tiny

pores through which the terminal come out. The entire process is called sealing.

5.SLEEVING-HOT SRINKING AND ASSEMBLING

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After sealing, the capacitors are send for hot shrinking. The printed color sleeve is rolled

over the capacitors and pressure is given over it along with temperature, so that the sleeve

remains stuck over and round the can of the capacitor.

6.AGENING AND TESTING

Ageing is the process through which electric voltage is given to the capacitor. Then it is

tested to see whether it is working properly and has the right voltage and there is no short.

The sealed coil goes for ageing and then it is tested. If the capacitor is good it is sent for

quality assurance. If it is tested bad then if re-ageing is possible, then re-ageing is done

and it is tested. If it cannot be re-aged it is rejected. Ageing and testing can be done

automatically and manually. Manually the capacitors are put in a trolley and loaded and

voltage is passed. Then it is tested.

7.QUALITY CONTROL

After the testing of capacitors, it is send to the quality assurance department. So it can be

checked for proper functioning in order to get 100% satisfaction from customer.

8.PACKING

Only passed items are packed into multiples of hundreds and send to finished goods

store. It may be packed according to customer requirements like bulk pack in.

9.STORE

The finished capacitor is then sent to the store, some where it is sold to dealers on the

first come first serve basis. i.e. FIFO method.

48STITCHING AND WINDING

ROLLINGIMPERGNATIONSEALINGSLEEVINGAGEING AND TESTINGQUALITY CONTROLPACKINGSTORE

Source:Company Records

Fig3.3.12: Manufacturing Process

3.4 ORGANIZATIONAL ANALYSIS

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3.4.1 KEY RESOURCES

The growth and success of the company is because of the quality policies they are

following,

To achieve a high standard of personal and corporate excellence through

continuous improvement HRD and employee participation.

To give utmost importance to satisfy and environment protection.

To market products and services of the company globally on strength of quality,

cost and delivery.

3.4.2. SWOT Analysis

The SWOT analysis provides information that is helpful in matching the firm’s resources

and capabilities to the competitive environment in which it operates.

STRENGTHS

Experience and Expertise of the workforce

Better Customer Service

Good infrastructure

Superior quality products

On time delivery of products

Reputation of the organization

KCCL is Government owned firm. It enjoys privileges from the Government.

Brand image

Fully and semi automated production system.

Highly satisfied customers

Good labor relations

Production of internationally quality products

ISO 9001-2008 certified company.

Attitude and commitment of the employees was found to be excellent.

Easy road access.

WEAKNESS

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The company is running at full capacity.

High price compared to other brands

Influence from the Governments and other political parties

There is high dependability on the import of raw materials

Very old machineries

Lack of advertisements and other sales promotion activities

Lack of market research information.

Employees are hard working but not innovative.

The company's website has little information regarding the various functional

areas/departments.

Lack of finance.

OPPORTUNITIES

The industryis in electronic field, diversification of products opens opportunities

for the organizations.

Few competitors.

New product development.

Company is capable of exports.

Day today expanding markets.

Availability of workers.

Expansion of production capacities.

High demand for the products.

Emerging technologies.

THREATS

High cost of production.

Political influence.

Emergence of modern technologies which cannot be attained by KCCL.

Globalization.

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80% of the raw materials are imported.

Hike in transportation cost.

Changing market trends.

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CHAPTER 4

OBSERVATION AND CONCLUSION

4.1 OBSERVATIONS

The following are the important findings on the basis of this study.

Keltron produces high quality products but comparatively charges high price than

its competitors.

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The presence of good industrial relation with the local unions and there is greater

cooperation between management and employees.

As Keltron is a Govt. undertaking company political influence is more which

affects its functioning.

A good co-ordination exists between different departments.

Wage system is fair and the workers are happy with their wages.

In sufficient allocation of funds for promotional activities.

Globalization has a bad effect on the company.

Keltron do not produces any environmental problems.

As Keltron imports raw materials, import cost is high and it leads to loss in the

sales price is not able to cover the loss.

Most of the products are produced as per the order.

Company website has few information regarding the various functional areas and

departments.

The Organization believes that its strength is highly qualified employees and

maintains good relationship with employees.

KCCL provides more safety to the workers.

The factory and premises are maintained very neat and clean.

The company is having good infrastructure.

The current data processing system in Keltron needs updation.

4.2 SUGGESTIONS

The organization should continue good industrial relation with the local unions and co-

operation between management and employees. It will reduce the industrial dispute in

the organization and increase the productivity.

New areas for application of capacitors have to be explored.

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Company may face severe competition in the market from foreign companies, so

company should start to export and also to produce the products at the cheapest rates.

The company should allocate sufficient funds for the promotional activities.

The plant is running at full capacity which leads to high wear and tear and

maintenance cost, so company should take better alternative strategy, the company

should go for expansion strategy.

The company can increase the productivity by replacing the old machinery.

It is better for the company to develop new software which can be connected to the

web so that the customers can directly make orders (E-Commerce).

Reduction of cost is necessary for the company in order to lead in the competitive

market.

The company should try to sell its product at competitive price.

It will be better if the company add additional in the website so that the customers and

other stake holders get more knowledge about the company.

4.3 CONCLUSION

Keltron Component Complex Limited (KCCL) is the only company in Kannur

district which produces Aluminum Electrolytic Capacitors. The company has high

reputation and goodwill with 37 years back in history.

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Through this Organizational Study, I got a good idea about the history and profile

of "KELTRON" to enlarge my idea in the business world. Also a good insight about the

working of the organization has been received.

The organization has a wide range of products and goods and after sales service.

The organization ensures 100 % quality in all of its products. I was also very happy to do

a study in such an organization, because the study discloses the problems faced by an

Organization. It also reveals how the company is striving to prosper from the ashes. The

study also reveals the problems faced by most public sector undertakings.

BIBLIOGRAPHY

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