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1. Industry profile
In this competitive economy FMCG (Fast moving consumer goods) market is having
significant demand in low to middle income consumers and above all highly price sensitive.
It consists of goods, which are directly consumable, packaged and branded. The FMCG
market in India has undergone extreme changes following Economic liberalization,
qualitative and quantitative restrictions under the new trade policy. India stands as the third
largest industry in FMCG industry after textile and petroleum. The profile of FMCG industry
food and processed foods, personal care products and dental products. Insecticides, liquor,
batteries are also included in this category.
Progressive reduction in excise duties on major FMCG product categories, rapid
extensions of media reach especially TV, considerable caring of licensing restrictions are
some of major drives if the Indian FMCG market in the recent past.The industry contributes
to the exchequer by way of income tax and central excise to the extent of 95% and 16%
respectively of the total collection. It provides considerable employment both in terms of the
1994 data; it provided 6% of the total 9.1 million. The industry has a significant rural bias
and accounts for 56% of the total rural demand.
The fast moving consumer goods (FMCG) market in India has undergone radical
changes following economic liberalization, lifting of qualitative and quantitative restrictions
under the new trade policies and the country coming under the ambit of WTO. Some of the
major drivers of the Indian FMCG market in the recent past have been:
Progressive reduction in excise duties on major FMCG product categories
Considerable easing of licensing restrictions
Rapid extensions of meds reach especially TV.
Almost double the rate of economic growth as compared to the past and this
growth spans all levels of society.
For the consumer, the change has been heralded by a cornucopia of foreign brands now
available legally on shop and helves, which were earlier produced only through the grey
market. For the industry, the change has manifested itself in the entry of host of
multinationals that has earlier kept away from the Indian market because of official
restrictions. For the media, particularly the fledging electronic channels, the changes have
come as an advertisement bonanza as the new players and the old slug it out in a promotional
blitz to capture customer attention and market share.
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2. Company profile
a. Background and inception of the company
Wipro was set up in the backdrop of the small town of Amalner in Maharashtra in 1945.
Primarily an oil factory, the chief products. Primarily an oil factory, the chief products were
sunflower vanaspathi and 787 laundry soap (a byproduct of the vanaspathi operations). The
company was called western India products limited, with a modest presence in Maharashtra
and Madhyapradesh.
In the 1970s Wipro embarked on an ambitious phase of expansion and diversification.
It was in the early eighties that Wipro made it’s foray into the consumer care products.
Wipro, an organization which gives prominent importance to adopting technologies to suit
the environment in which it carries on it’s business. Inspiration, experimenting and
converting ideas into reality has been the culture of Wipro which results in getting the best
output. Wipro has laid great emphasis on Quality and Research by undertaking Six Sigma
projects. Wipro gives prior importance to the customer than organization with a human face
remains unchanged over a period of time.
Azim H Premji who is awarded as “Best ethical person” started the organization with
Vanaspathi production and followed by Toilet soap manufacturing unit.
Wipro consumer care and lighting has a profitable presence in the branded retail
market of toilet soaps, hair care soaps, baby care products and lighting products. It is also a
leader in institutional lighting in specified segments like software, pharma and retail.
They have been one of the fastest growing FMCG companies as reflected by the
organizational performance in the last three years. They have grown both organically and
through acquisitions.
Their growth has been lead by growth in toilet soaps (led by Santoor), domestic and
institutional lighting and their recent foray into modular furniture. They have also gained
from new launches in fabric wash and the wellness segment.
In India, the growth rates of the segments they operate in have averaged around 14%,
while they have grown at twice the market growth rates in the last three years.
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Timeline:
Wipro Limited was incorporated in 1945 and commenced it’s operations in 1946. Significant
milestones are:
1945: Incorporation of Western India vegetable products Limited.
1947: An Oil mill and hydrogenated cooking medium plant was set up.
1966: Azim Premji takes over the leadership of Wipro at 21 years.
1975: Wipro Fluid power plant was setup to manufacture hydraulic and pneumatic
cylinders.
1977: Name of the Company changed to Wipro Products Limited.
1980: Information technology services for domestic market started.
1981: Hardware Company is launched.
1982: Name of the company changed to Wipro Limited.
1984: Software products subsidiary Wiprosystems Limited was established.
1985: Toilet soaps manufacture begins.
1988: Wipro BioMed, a new business unit to market and service bioanalytical and
diagonostic instruments is launched.
1989: Joint venture with GE of United States for medical systems, Wipro GE Medical
systems Limited.
1990: Product software business discontinued software services begin.
1992: Lighting business and finance arm is established.
1994: Merger of subsidiaries Wipro technologies Limited and Wipro systems Limited
with Wipro Limited.
1998: Relaunch of Wipro identity with Rainbow flower and positioning statement,
“Applying thought”.
1999: Wipro Net set up by restructuring Wipro Limited’s communication services
bsiness to address the internet market.
2000: Six Sigma initiatives begun
2001: Wipro becomes world’s first P-CMM level 5 company.
2002: Wipro becomes CMMi.
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b. Nature of the business:
Wipro delivers unmatched business value to customers through a combination of
process of excellence, quality frameworks and service delivery innovation. Wipro’s business
can be broadly classified into the following 6 categories.
1) Wipro Technologies:
Wipro technologies in the global IT services business division of Wipro Limited
working in over twenty offices around the world, Wipro technologies use powerful
technologies to provide services for business transformation and product realization as
well as complete solutions for the service provider makes.
2) Wipro Infotech:
Wipro Infotech is a division of Wipro Limited and provides customers with high
value information technology solution, infrastructure services and platforms in India
and is all said to offer high end technology services and solutions for the Asia, Pacific
and Middle East Markets.
3) Wipro consumer care and lighting:
Wipro consumer care and lighting is the FMCG arm of Wipro Limited which
continuously introduces innovative products and adds value to the existing brands,
each of which is the promise of good health and value for money. Its brands include
Santoor, Wipro Shikakai, Wipro Active and Wipro babysoft.
4) Wipro Fluid power Limited:
Wipro infrastructure engineering (formally Wipro fluid power) was the Wipro’s first
diversification in 1975 to address the hydraulic equipment requirements of
mobile original equipment manufacturers in India. Over the past 25 years, the Wipro
Fluid Power business unit has become a leader in the hydraulic cylinders and truck
tipping systems market in India. Wipro Fluid Power intends growing it’s business by
leveraging its dominant market share in India to serve the global manufacturing
requirements of hydraulic cylinders and truck tippers.
5) Wipro GE Medical systems limited:
Wipro GE Medical systems are a joint venture between Wipro and General electric
Company. A part of GE Medical systems in South Asia, it caters to customer and
patient needs with a commitment to uncompromising quality. Wipro GE is the market
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leader with unmatched distribution and service reach in South Asia and is India’s
largest exporter of medical systems. Wipro GE pioneered the manufacturing of ultra
sound and computed to mography systems in India and is a superior for all GE
medical sysem’s products and services in South Asia.
6) WiproePeripherals(WeP) Limited:
Wiproeperipherals limited (WeP) is a leading IT peripheral solution services company
in India.WeP commenced operations in 1986 as a peripherals division of Wipro
Infotech, one of the largest IT Companies in India and then became an independent
corporate entity in September 2000. WeP is India’s largest employee owned
company, best known for innovation, e-enabled processes and customer forces.
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c. Vision, Mission and Quality policy
Winning is about making customers successful. Winning is
about making all stakeholders successful. In business, Winning
is not about ‘Winning against’ but its ‘Winning With’.
Intensity to Win is the burning desire to stretch and challenge
our limits. It is the desire to realize and expand our potential.
It’s about continuous innovation and striving to be better every
time. Its about excelling in everything we do. It’s about
multiplying forces as a team. No one wins 100% of the time,
but those who have the Intensity to Win, win more often than
not.
Vision:Fuelled by culture and values
Wipro is built on a foundation of Values. The values form the essence of their culture. The
values are a guide to their behavior. With 75,000 people across 29 countries, its’ the values
that ties them together that is what makes Wipro, Wipro. They call their values the Spirit of
Wipro.
The spirit of Wipro is deeply rooted in their history and in what they are, and at the
same time is soaring with their aspirations. Each Wiproite is expected to live the Spirit of
Wipro- manifest it in thought and action.
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Spirit Of Wipro
Intensity to win
Make customers successful
Team, Innovate, Excel
Act with Sensitivity
Respect for the individual
Thoughtful and responsible
Unyielding Integrity
Delivering on commitments
Honesty and fairness in action
The spirit of wipro is an invisible synthesis of all three statements. It means manifesting
intensity to win, acting with sensitivity and being unyielding on integrity all the time.
Mission:
Quality has always been a strong part of Wipro’s proposition. Wipro boasts of many
pioneering achievements in quality journey. Quality is focused on not only in the product
or service that touches its customers, but also on internal processes and as an enabler
facilitating on going business transformation to meet dynamic market challenges.
Quality policy:
Their quality policy shall be:
1. To sustain a competitive edge in quality through continuous assessment of
customers expectations and needs.
2. To pursue excellence in all aspects of production operation.
3. To promote a culture of conforming to specifications and requirements.
4. To involve people at all levels in the pursuit of excellence.
5. To spread a culture of excellence to all the vendors.
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d. Product/Services Profile
TUMKUR FACTORY
Activities of Tumkur factory:
The Tumkur Factory manufactures the following products:
1. Toilet soaps.2. Bathing bar3. Noodles for bathing bar and Toilet soaps.4. Distilled Fatty acids
In the process the following by products are generated.
5. Light ends6. Pitch 7. Crude Glycerine
Wipro consumer care business offers established brands addressing consumer needs
in personal care, toiletries, and baby care and lighting categories. The product
includes Santoor brand of soap and talc, Wipro Shikakai soap, milk and roses soap,
Wipro baby soft range, Wipro active talc, Wipro brand domestic lighting, commercial
and institutional lighting.
Table showing Wipro Products
Soaps Toiletries lighting
Santoor
Wipro Shikakai
Wipro Active
Milk & Roses
Santoor Talc
Fairness cream
Wipro Active Talc
WBS Baby
Bulbs
FTL
C & I
Lighting
Soap segment:
Roughly 50% of Wipro’s consumer care business comes from the toilet soap
category. Where it’s biggest brand till date Santoor, holds way. Wipro’s share in the
national toilet soap market is just 4.6% reflecting it’s skewed regional character in the
FMCG sector. For instance, Wipro through Santoor is the leading soap markete in
Andhrapradesh with 18% of market share. Chandrika enjoys strong equity in South
India. The market for Ayurvedhic and Herbal products is growing and Chandrika
though not as large a brand as the Medimix is poised to take advantage of it. If the
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company wills it Chandrika, though not as well distributed in up country markets, like
Jeeva from Jyothi labs and Medimix has good brand properties which Wipro can
build. Wipro is extending milk and roses not only to sell in Punjab, to other states in
the north. Wipro babysoft soap, pitted against global Johnson and Johnson accounts
for 30% share at the segment in Andhrapradesh.
Lighting segment:
Lighting has seen considerable action especially in the commercial and institutional
segment with niche verticals such as pharmaceuticals, retail, IT and outdoor media
reporting significant growth. Wipro faces competition from Philips and G.E. in
private sector order, while its up against Bajaj and Crompton in its bid to bag the
Government sector pie. On retail side of lighting business Wipros overall market
share is pegged at nearly 5% while Philips, which is a prominent player, claims a 36%
market share.
Wipro consumer care & lighting has delivered improving return on capitol employed,
which at last count was estimated at 86%. Its operating margins are over around 15%
to 17%.
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e. Area of Operation
Wipro Technologies, the Global IT services division of Wipro Limited NYSE:
WIT (incorporated in 1946, in operation since 1945) is an India based global IT
services, IT solutions and technology services center; established in 1980 in India. It
has its head quarters in Bangalore, and is listed on the Bombay Stock Exchange,
National Stock Exchange of India and the New York Stock Exchange. As of 2004, it
was the fourth largest company in the world in terms of market capitalization in IT
services.
Wipro technologies have 30 offices worldwide with 50, 100 employees and
over 300 customers across USA, Europe and Japan including 50 of the Fortune 500
companies. Wipro has 54 dedicated development centers across India, Europe and
United States and also has 30 offices in North America, Europe and Asia Pacific. In
India, Wipro has operations in Bangalore, Mumbai, Pune, Chennai, Hyderabad,
Gurgaon etc.
Global
Wipro Company today is a global corporation having operations in 29 countries
through more than 50 subsidiary companies, a few joint ventures and associate
companies.
Americas
United States of America, Canada, Brazil
Europe
UK, Germany, France, Sweden, Netherlands, Finland, Switzerland, Romania,
Portugal, Austria
Middle East
United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Oman, Kuwait, Egypt
Asia Pacific
India, Japan, China, Australia, Singapore, Malaysia, Taiwan, Hong Kong,
New Zealand
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f. Ownership Pattern
Wipro Limited is a public listed company. The shares outstanding as of June
2006 are 1,43,19,92,871 equity shares. The shares beneficially owned by the directors
include the equity shares owned by their family members to which such directors
disclaim beneficial ownership. The number of shares beneficially owned includes
equity shares, equity shares underlying ADSs.
Azim H Premji who is also the chairman and managing director holds the
majority share holding of 81.09% of Wipro Ltd. The non promoters holding
comprising of Institutions like mutual funds, banks, insurance companies, foreign
institutional investors and corporate bodies make up 5.13% and individuals hold the
remaining 13.78%
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g. Competitors information:
IT Services and products
The market for IT services is highly competitive and rapidly changing. The
competitors in the market includes global players like IBM, Hewlett Packward, EDS,
Dell Accenture and Indian companies such as TCS, Cognizant Infosys, Satyam and
HCL Info systems, It is anticipated that Lenovo, which has acquired thae PC business
of IBM, will be a significant player in Indian IT products market. Global players like
IBM and Hewlett packard and to some extent sun Micro systems have been
increasingly focusing on increasing their presence in the Indian markets. Some of
these competitors have secured large IT services contracts in India.
. The ability to compete will depend on a number of factors not within control
which include:
The ability of competitors to attract, retain and motivate highly skilled IT
services professionals.
The extent to which international competitors expand their operations in
India and benefit from the wage differential;
The price at which competitors offer their services; and
The extent to which competitors can respondent to a clients needs.
In BPO services, the primary competition is against the in-house business process
outsourcing units of international companies, other than IT service providers, global
competitors from other shore locations like the Philippines and Ireland.
Consumer care and lighting
Competitors are located primarily in India and include multinational and
Indian companies such as Hindustan Lever for soaps, toiletries and General
Electric and Philips for lighting. Certain competitors have recently focused on
sales strategies on increasing volumes through lower prices. Sustained price
pressures by competitors may require Wipro to respond with similar or different
pricing strategies.
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h. Infrastructure facilities:
Wipros head quarters and corporate offices are located at DoddaKannellli,
sarjapur road, Bangalore in India. The offices are approximately 3, 00,000 square feet.
Wipro has purchased approximately 2, 62,000 square feet of land adjoining the
corporate offices for future expansion plans. Wipro has one sales and marketing
offices located in each of the following countries: Canada, France, Germany, Japan,
Sweden, Italy, Switzerland, Finland, the Netherlands, the United Kingdom, China and
Japan. In addition there are eleven sales and marketing offices in the United States. In
addition there are eleven sales and marketing offices in the United Sates. Wipro
operates in ten manufacturing sites, aggregating approximately 12, 64,871 square feet
and approximately 4,037,997 square feet of land. It owns seven of these facilities,
located in Amalner, Tumkur, Bangalore, Mysore, Hindupur and Chennai and
Pondicherry in India. It has leased on a long term basis two facilities located in Waley
and Baddi, India. There is one software development facility in London, United
Kingdom equipped with a world class technology infrastructure that includes
networked work stations, servers, data communication links, captive power generators
and other plants and machinery.
Tumkur factory layout
Total site available : 20 Acres
Plant & Building area : 8 Acres
% of utilization : 41%
Plantation Area :12 Acres
% of utilization :59%
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i. Achievements/Awards
Wipro has made a name for itself as a company providing reliable services
worldwide. The technological expertise and service skills exhibited by Wipro have
been appreciated by its list of clients scaling various industry sectors. The media has
been quick to document the impressive work, milestones and awards achieved by
Wipro.
Wipro only Indian company in the business week’s IN25 “Champions
of Innovation” list.
Wipro BPO recieves prestigious “Outsourcing Excellence Award”.
Named India times ‘BPO Company for the year.’
Only Indian company to be ranked among the Top 10 Global
Outsourcing providers in the IAOP – Fortune Global 100 listings.
NASSCOM congratulates Wipro Technologies as show case company
for IT innovation in India 2005.
Global Make 2005 Award; Most admired knowledge Enterprise Study:
Telcos Oct 2005.
Wipros Gurgaon development center awarded platinum rating: US
Green Building Council, sept.2005
Wipro among World’s 400 best big companies: Forbes, Sep 2004.
Among 10 outsourcing vendors in US: META Group, June 2004.
Ranked 7th amongst software services companies in the world
(Business week InfoTech 100, November 2002).
Among the Top 5 IT companies base on equity (Business week, Info
Tech 100, June 2002).
India’s most valuable company (Business today, October 2001).
Part of TMT (Technology -Media -Telecom) Index of the New York
Stock Exchange.
Top 3 employees in Indian IT -data quest 2002.
Business innovation award for off shore development. (Electronic
and software export Promotion council, 1993).
Corporate audit function: commitment to quality improvement award
(Institute of internal auditors).
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“Bravo! Partner of the year” award from Best By. (Best buy recognizes
Wipro as their best IS partner for the year 2002).
Spectra mind awarded the first runner’s up for excellence in innovative
HR practices in a survey organized by Watson Wyatt and Delhi
Management Association, October 2002).
KMWorld’s km Reality award for 2002 in recognition of Wipro’s
knowledge management practices and processes.
IEEE Award for software process Excellence First Company outside of
US to be conferred this honor.
ITSMA Award for services Marketing Excellence Integrated lead
Generation program conferred top honors.
IDC CMO Best Practices Award for marketing measurement and
metrics.
Top company for leaders in Asia Pacific-2003 in Hewitt Survey.
The golden web Awards 2003-2004 for the wipro website:
www.wipro.com
Ultra web level 3 Award for the Wipro Website, February 2003:
www.wipro.com
K2 excellence Silver Award, February 2003: www.wipro.com
Dexter’s Gold Web Award for the Wipro Website, February 2003:
www.wipro.com. The gold award is the highest Dexter award and is
given to only the best web sites.
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j. work Flow model
The internal operations of the Factory are divided into the following five primary functions.
1. Commercial - Material and Distribution, Planning, Procurement, Inspection, Storage and Distribution.
2. Manufacturing.3. Quality Control & Effluent treatment.4. Engineering.5. Accounts, Personnel, Boiler and Utilities.
a. Materials and distribution – material planning, Inspection and Storage, Distribution of finished goods
PRODU
b. Manufacturing
c. Engineering
d. Contracts and amendments
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PRODUCTION PLAN
RECEIPT INCOMING QC STORAGE
MANUFACT-URING SECTION
FINISHED GOODS
STORAGE
RECEIVING DESP.PLAN FROM BO
ARRANGE TRANSPORT
ARRANGE DESPATCHES
PRODN. PLANNING
MANUFAC-TURING
INPROCESS QC
PACKING FINAL QC
FINISHED GOODS
MATERIALS & MANPOWER PLANNING
MAINTANCE TRIAL RUN HANDOVER EQUIPMENT
CUSTOMER MADD CONTRACTS & AMMENDMENTS
REVIEW WITH CONCERNED QLTY & QTY
INFORMATION TO AFFECTED DEPT
PERSONNEL ACCOUNTS UTILITIES
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k. Future growth and prospects
The objective of Wipro is to be a world leader in providing a comprehensive
range of IT services to their clients. The markets are undergoing rapid change due to
the pace of development in technology, changes in models and changes in the
sourcing strategies of clients.
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Part B
Mckensy’s 7S frame work with special reference to organization under study
Structure
COMMERCIAL DEPARTMENT
Material admn. & Stores warehouse distribution dept.
COMMERCIAL DEPARTMENTAL STRUCTURE
Commercial department plays a vital role in the day-to-day activities in the factory.
Materials are planned depending upon the marketing environment which further depends on
the market study and commitment by the sales team. Materials are sourced through
authorized stockiest and directly from the manufacturers at the best possible cost and who are
evaluated form time to time for quality, quantity and timely service
Commercial department is considered as the most important department as it meets
the Raw Material requirement of the production departments, which are essential for the
production purpose. The requirement plan is prepared commercial department based on the
requirement of marketing depending on the forecast made by marketing materials which
helps in finding out future requirements, the raw materials to be purchased etc., Materials of
good quality are purchased at most economical cost by this department. It is undertaken
because:
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Factory manager
Commercial manager
Senior officer materials
Commercial assistants
Commercial assistants
Sectional in charge
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Commercial function consists of mainly
Purchase function
Distribution function
Commodities function
Stores function
1. Purchase function:
This function is taken care by a separate section, which deals with the procurement of
raw material from various suppliers by keeping in mind the quality aspect. This section
ensures that vendor supplies in accordance with the quality assurance department’s
requirements through proper inspection and testing .Wipro maintains a very cordial
relationship with it’s suppliers.
The head of the Commercial department is the commercial manager who reports to the
general manager.
2. Distribution function/warehouse function:
Distribution function is a service function undertaken by Distribution section. In
Wipro, distribution takes place according to the requirement and estimated sales placed by
different marketing area offices at Business Office in Bombay, where centralized distribution
department is there for facilitating distribution. Economy aspect is considered while making a
distribution which includes items like Toilet Soaps, Oil etc.
Distribution reports are prepared, production status, stock reconciliation, freight
standard are also checked and records relating to it are maintained.
3. Commodities function:
It is a service function rendered by the commodities section, which acts as a custodian
of oils. Oils are purchased through daily purchase commitment with the business office
Bombay, according to the standards fixed by the president. The different types of oil
include palm oil, coconut oil etc. while purchasing oils the “General terms and conditions
for purchase or delivery of Wipro” is followed. Maximum time limit for receiving of oil is
4 p.m. Daily Material Administration Department (MADD) reports are maintained, which
contains the information about the opening stock of oil, receipts, issues, closing stock, des
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sent to Bombay. Purchasing is done through brokers. In Case of delay in delivery, debit
note is issued and penalty is levied for which broker is responsible.
The commitment register is maintained which is a book of prime checking. Separate
books are maintained for imported oils and other locally bought oils. The commercial
manager is authorized to purchase bulk oil in expectation of increase in oil price in future
but, the excess cash ploughed for this purpose get interested i.e. interest is charged for
excess cash used.
4. Stores function:
An efficient and well equipped “stores” section is an asset to effective inventory
control. Stores are the place where raw material and other purchases are kept. In stores
department the materials are classified according to the needs of the production departments.
Eg. Materials for refinery and T.S.P. are kept separately.
The materials after being ordered by purchase section come to the stores which
undergo for inspection, after that only material are stored as per the needs of various
production departments. The rejected materials are stored as per the needs of various
production departments. The rejected materials are kept side and sent back to suppliers.
Certain materials bought are tested by quality assurance lab and only after its verification
materials are accepted and stored.
The stores section is spacious and also has a cold storage area in which materials are
kept to prevent any kind of deterioration.
Computerization of purchase department facilitated the easy access to information
relating to the stores such as stock position, value, quantity of raw material issued, quantity
remaining etc.
The main functions of stores are:
Receipt of raw material from vendors after verifying delivery Chelan
Inspection of raw material
Issuing of user departments by issue slips
Updating of stock ( stock verification)
Stores work in close co-ordination with purchase and finance department. For
procurement of raw material, standard is set by commercial manager for maintaining quality
level which is an element according to Wipro.
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ENGINEERING DEPARTMENT
ENGINEERING DEPARTMENT STRUCTURE
The important and main function of the engineering department is maintenance
department is to keep the machines in good conditions (i.e. running efficiently and
effectively). This department has to see that production process is carried on smoothly,
keeping in accordance with plans and schedules and reducing the idle time of machines. This
department is mainly concerned with the mechanical, electrical and civil works relating to
machineries.
Some of the important activities performed by this department are as follows:
Keep the machine in proper condition and avoiding downtime of machineries.
Projection of working of machines and modification undertaken in case of
necessity to save power and time and to keep up production
Conducting periodic checking and planning for uninterrupted, systematic
operation.
Maintaining records relating to machineries.
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Factory Manager
Officer Maintenance/ Shift in charge Maintenance
Operator
Manager Maintenance
Welder
Helper
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Placing orders with commercial department for the spare parts required and
checking the quality and specification, standard of it when it is received.
Boiler inspection, factory inspection i.e. pressure vessel maintenance.
Electrical Diesel generator section:
This section takes care of the following activities:
o Overhauling and generators maintenance.
o Electrical installation.
o Checking all electrical equipments like earth etc. preventive maintenance,
supervision of major break down.
o Work schedule preparation and if position is critical, making shut downs.
o Removing dust, maintenance of break-down records and planned measures
relating to it.
o As a preventive measure checking cabling, starters, sign boards, earth’s
loose connections and taking safety measures.
o Checking whether minimum electrical material stocks are maintained in
stores and if not placing purchase requisition.
o Supervision of workers.
o Proper lubrication of machines and greasing and regular audit of all critical
parts after their identification and keeping records of it.
Major repairs are handled by sub-contractors. Technical assistance is also
taken from outside to improve the quality of maintenance. Six sigma for
maintenances adopted which covers the following activities:
Meeting customer requirement (i.e. production department
requirement). Finding cause for defects and preparation of cause
and effect diagram so that affected areas are made defect free.
Action plan preparation for implementation.
Preparing checklist for preventive maintenance, submitting reports
on observations made and giving suggestions/ proposals related to
it.
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QUALITY ASSURANCE DEPARTMENT
QUALITY ASSURANCE DEPARTMENT STRUCTURE
Quality: means fitness, merit or excellence. In purchasing, quality is related to
suitability and cost. Quality is not always related to inner excellence. The best quality is
that which can be purchase at reasonable cost to fulfill the need. In Wipro, quality and
service get prime importance and price get the secondary consideration.
Quality Assurance: all those planned and systematic actions necessary to provide
adequate confidence that a product/ service will satisfy given requirement for quality.
The quality policy of Wipro, is to design, manufacture and market at competitive
prices, products of such quality which results in total consumer satisfaction, quality
reputation and market leadership.
Some objectives of quality assurance department are:
Cost reduction.
Quality and process improvement and development.
Maintaining required quality manuals as per internal and external / statutory
specifications and so on.
The main functions performed by this department are:
Raw material testing.
Intermediate samples and finished products are also tested.
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Factory manager
Quality assurance manager
ETP
3 Operators1 each in shift
QA7 Analysts2 in each shift1 in general shift
Contract2 helpers(QA)1 in gen.shift1 in night
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In case, when products quality is not met, the materials are rejected and for
finished goods dispatching is not permitted. While purchasing ago based products if
quality is not met, rebate in payment is done. The specifications for products are
revised yearly and the standards are set b the department itself.
The Wipro has implemented the quality policy through Company wide quality
management programme called Six sigma which emphasizes on:
Improvement of lather in soap.
Change in the shape of soaps.
Use of latest technology, management tools, statistical techniques,
defect prevention methods and document procedures in all activities.
Process control during purchase, manufacture and testing.
Participation of all departments and all employees in continuous
improvement activities through structured six sigma quality
improvement proramme.
Regular reviews and quality testing are performed to monitor
effectiveness of programme.
The daily audit and weekly audit are done, which is submitted to
president. No time and date for audit is specified to ensure continuous
awareness among other departments.
The authority is delegated to sub-ordinates and has full freedom to take
decisions relevant to their work and they have given full chance for self-
development. Some samples are given to different employees to conduct test
for the purpose of internal analysis and also to know the employees capability
so that proper guidelines are given to them in case of any difficulty.
The new quality testing improvement if any made will be
communicated to other plant situated at Amalner to help in overall
development of the concern.
In Wipro, the overall quality assurance department is looked after by
the quality control manager who is the head of the department, who is assisted
by chemists and he is responsible for quality programme implementation and
acts in consultation with vice-president (Q.A) for this purpose.
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WCCLG, TUMKUR
PRODUCTION DEPARTMENT
All the aspects relating to the manufacture of Soaps are taken care by this department.
The products produced essentially meet the application and quality requirements of the
customers and yet conforming to National and International standards including aesthetic
characteristics with special attention to ease and economy of manufacture.
Some of the functions performed by production department are:
Directing and controlling of production operations to meet business plan within
approved budgets which include material conversion cost, usage of utilities and
chemicals, inventory and operating maintenance costs.
Taking care of safety programmes.
To supervise, appraise, motivate and lead sub-ordinates to achieve planned
performances through mutually supportive organizational relationships.
Carryout bench marking exercises on competitor’s product to improve quality of
products.
To install, implement and maintain quality system in accordance with standards.
Keeping relationship with other departments and business office and provision of
accurate information in a supportive manner.
Providing support and guidance to shift officers in increasing efficiencies of
operations and removing bottlenecks.
To ensure compliance with statutory regulations of FDA/ weights and Measures Act
and also review quality and management by conducting meetings.
Monitoring manpower usage and production to achieve planned productivity ratios.
Participating towards product development by planning and organization pilot and
plant level trivial.
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Problem solving/complexity:
Processing of raw material which is oil based has to be carried out with
minimum information and analytical support, without affecting operational
efficiencies.
Regular analysis of operations and processes to increase efficiency with
respect to cost and volumes.
Constantly interacting with different divisions and control of in process
socks so as to be within approved limits.
Planning and coordinating departmental activities during periods of high
absenteeism and sudden pressures from market.
Meeting statutory requirements and keeping with production schedules and
keeping abreast of latest technology development in new methods,
materials, process and products.
Job purpose:
Planning, organizing and controlling the manufacture of Toilet soap, fatty acid
and glycerin noodles in line with business plan, meeting norms of quantity,
cost, quality and statutory requirements.
There are two production departments viz,
1) FAG plant &
2) TS plant engaged in the manufacture of Fatty Acid and Toilet soap
respectively.
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FAGP (Fatty Acid and Glycerin Plant):
FAGP STRUCTURE
This plant was started in 1990. In FAG Plant, Fatty acid was produced.
There are about 15 workers in 3 shifts working in this plant. Production
manager is in charge of this plant and he is responsible for production planning,
control, maintaining coordination with customers, keeping interaction with inter
departments, providing necessary raw materials to the process. Next to
production manager, junior officer of production is there who look after the
implementing part of production plan, communicating production plan to shift
in chargers, effective coordination with employees as well as higher authorities,
interacting with other departments in providing necessary raw materials and
transferring finished goods, solving interdepartmental problems etc.
Shift in chargers are responsible for implementing production plan as per
instruction from higher authorities. Coordination and control over jobs in
respective sections with concerned employees. Handling maximum
responsibility during shift, making decisions during shift timings when higher
authorities are not available.
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Factory Manager
Manager FAGP
Shift Officers
Charge hands Operators and helpers
WCCLG, TUMKUR
.
TSP (Toilet Soap Plant):
TSP STRUCTURE
Production officer who is below production manager is responsible for
reparation of cumulative reports, maintaining T.F.M.(Total Fatty Matter),
conducting new trial , following standards, allotting shifts to people,
absenteeism, overtime control and keep informing to production manager.
Production function shift in chargers look after the quality, production,
out skipping and safety matters.
The raw material used in this plant is Fatty Acid and Caustic Soda and these
raw materials are received from FAG plant as by-products through placing
weekly requirement with FAG plant and stores. Any wastages arising during
the time o production like stiffener and wrapper are thrown or burnt out.
All information relating to production, stocks are recorded in log books
and compressed information are written in main book which also includes
human resource used. The records maintained are shift report, operation report,
transfer slips prepared to make Distilled F.A. report, process report by quality
department, quality control report and weekly reports.
SSIBM -2009 28
Factory Manager
Charge hands
Manager TSP
Shift Officers
Operators & Helpers
WCCLG, TUMKUR
ACCOUNTS DEPARTMENT:
ACCOUNTS DEPARTMENT STRUCTURE
Finance department is considered as a nervous system of the organization
as performance of every activity needs money one way or the other. There is
also necessity of maintaining proper books of records relating to the
transactions for which existence of accounts department is essential.
Objectives:
The objectives of the accounts department are to help the firm to achieve its
target for the year in coordination with other departments, keeping up-to-date
records and making it easily accessible.
Wipro makes efforts to provide the customer the desired goods and to
maintain a very high quality and it is ultimately directed towards achieving
profitability which is a must for concern’s growth and sustenance.
Functions:
The important function of accounts department is maintaining different
accounts for carrying the business. These accounts include purchases a/c, sales
a/c, cash transactions, payment of salaries and wages including incentives to
employees, central excise and sales tax payments.
Costing section:
This section follows a standard costing system as a cost control technique.
Each processes idle time to be taken, quantity of raw material used, rate and
other details are maintained and it is reviewed yearly and rates are changed
SSIBM -2009 29
Factory Manager
Manager accounts
Resident Engineering
onLien
Jr.Offer payment &
Banking
Officer Account’s
sales tax and commercial
tax
Staff costing & Finance accounts
WCCLG, TUMKUR
quarterly. In Wipro accounts are maintained as per periodic cycle (PC). Four
weeks make 1 PC and 13 weeks make 1 quarter. Monthly MIS is done and
reports are maintained.
President and specialist in concerned field fix the standard for each item
and for each step control is exercised. The duties of this section are to find any
adverse variation in cost and planning about activities. Process costing is done
for each process.
Accounts section:
The important functions carried on by this section are:
Passing entries of purchases
Maintenance of vouchers
Making financial entries
Excise regulation as excise is calculated on the basis of cost statements.
System section:
The system analyzer and the programmer take care of this section and
perform the activities like software, hardware management, programme
development and rectification of problems if any.
SAP is used in programming and UNIX operating system is followed in Wipro.
Hardware maintenance is taken care of by the people from Bangalore division.
Wipro has more cash transactions than credit. It has minimum number of
debtors for whom maximum of 45 days of credit period allowed for payment
and now, extending the period to 60 days was in process. Bills are managed by
stores and are then sent to accounts department. This section looks after bank
operations, costing works and maintains party’s accounts also. Most of
transactions are made through DD and Cheques, valuation is also done. Sales
may be consignment sell or direct sell. Sales invoices are prepared as per
statutory requirement and only some scraps are sold from unit.
Depreciation policy:
The firm follows the rates and procedures indicated in schedule 16 of
company’s act, 1956 to provide for depreciation on assets. The firm follows the
straight line method of depreciation.
Cash and Bank Transactions:
All cash transactions are affected by accounts departments. These may be
in the form of sale proceeds of stearic acid, scrap and toilet soaps. Receipts are
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received from Bombay by T.T. Other items are sold on advance payment but
for stearic acid 30 days credit period is allowed. The books maintained are:
Sales register, Product summary (monthly), Tax summary (monthly),
Purchase register, Summary vouchers, Bank and cash books, General ledger,
Party’s ledger
The transactions of this unit are done through SBI and B.R. statement is
prepared for the transaction for verification purpose.
Finance for new projects:
Working capital is used as one of the sources for financing and sales
earnings are also used for financing. Treasurer department in Corporate
Office will take care of outside source for financing purpose.
The Accounts department controls the expenditure by formulating
budgets. It advises management and signals wherever the department
budgets exceed the actual budgets. The department helps and activates the
collection from customers. It helps to keep the interest on overheads less tan
the budgeted level and helps in achieving profitability.
Excise and sales tax:
Raw material is used for final products art purchased after paying duty on
it by the party which is accounted in books A part 1 where final
consumption of quantity entries are made. A part 2 consists of amount of
duty paid by the suppliers.
To clear the final products 16% duty is paid. CENVAT is also taken care
off and materials are classified as finished and raw material going towards
final products to make it easy for calculation. Raw materials a/c, capital
goods a/c are maintained for record purpose. Factory gate sale is based on
costing and in consignment selling fixed trade discount; expenses are
deducted from raw material cost and net amount used for calculation.
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HUMAN RESOURCE DEPARTMENT:
HUMAN RESOURCE DEPARTMENT STRUCTURE
Personnel department is well organized and prime importance is given to
workforce which is the primary objective of personnel department and focus
is more on labor rather than machine.
Functions:
Man power planning: Wipro forecast personnel needs, assesses
personnel supply and match supply demand factors through
personnel related programmes. To achieve long term objectives
regular manpower planning is essential.
Recruitment: Wipro recruit highly qualified and experienced
persons to right jobs. Recruitment is based on written test, group
discussions and interviews. Training and development after
recruitment, training is given to fresh employees to develop specific
skills, impart knowledge and abilities so that current employee’s
performance can be increased which in turn increases productivity.
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Factory Manager
H R Manager
Security Officer
Staff security shift incharge
Chief HR Executive
WCCLG, TUMKUR
Performance appraisal: Employees performance is measured with
such factors as job knowledge, quality and quantity of output,
leadership abilities, supervision, cooperation, versatility, health etc.
Employee remuneration: it is one of the major functions of
personnel department. Remuneration is paid to the workers for their
efficient work in the organization. Remuneration depends upon
nature of job, seniority and merit. Workers are loyal to their jobs and
to the organization in Wipro.
Integration: integration of management and workers are quite often
so those grievances of the workers are solved, this increase the
harmony and discipline in the organization.
Promotion policy: works men are promoted on the basis of
Vacancy
Seniority
Staffs are promoted on the basis of
Merit cum seniority
Performance
Welfare measures:
Wipro runs a canteen to facilitate its employees. The
company gives 90% subsidized food to the
employees.
Medical facilities provided to the employee are
absolutely free of cost and there is a provision made
for annual medical check up to all the employees.
Industrial relations in Wipro are good. Company products are given
to the employees at reduced rates and rewards are given to the
departments which have achieved the set target. Uniforms, shoes and hand
gloves are provided to the employees.
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Skill:
This module highlights the procedure for identifying, organizing and reviewing.
Training programme for employees at Tumkur. This is prepared in accordance with
competence, awareness and training procedure of quality manual
Procedure:
The success of any organization depends upon the knowledge, skills and capabilities of its
people. It is very essential that an organization identify the factors, which would affect the
performance and initiate actions to correct these. One of the interventions could be well
designed. The employees in the factory are put through the following training programmes.
1. Induction training
2. Orientation training
3. Need based training
4. Development training
5. External training
6. On-the-job training
Except for On-the-job training all other programmes are co-coordinated by personnel
department.
1) Induction training:
All employees upon joining go through an induction-training programme conducted by
personnel department.
This programme comprises of the following:
“Our promise” as enumerated by the company chairman are
covered in detail by personnel department.
A brief session about the organization, organizational structure,
product profile and company policies.
The employees are briefed on the functional knowledge of each
department.
The Head of the Department in which the employee is placed, gives a briefing on the
quality system of the factory department and new incumbents role in the system.
2)Orientation training:
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The orientation for all newly inducted employees is organized by personnel
department and training is imparted on the following subjects as show against each of the
following:
5S (House-Keeping)- personnel department
Plant & departmental procedure- respective department
Quality system: confirming ISO-9001-2000 –Management repetitive
Safety policy & procedure- safety coordinator
1) Identification of training needs:
The training needs for Jr. Staff and management are identified through the
Annual performance appraisal by Head of the Department. Such identified training
needs are summarized and recommended by Personnel department.
Through performance review by HOD on an “On Going” basis individual
training needs arising out of Annual performance appraisals are picked up and
seminar or courses that address these needs are identified.
Training of workmen is basically on the job activity. They are trained
periodically on the subjects/ areas as specified. The training needs assessment for
them will be limited only to any specified requirement for the job.
Training needs for trainers will be assessed once in a year by Personnel
department in consultation with factory managers. Training will be imparted as per
assessment.
2) Need based training programme:
i. The training needs of employees (except for on- the job training) as identified by
HOD is based upon the performance or wherever any specified training needs arise
are recorded in Training need assessment form.
ii. The filled in training need assessment forms are forwarded to personnel department.
The training calendar is prepared for the financial year by personnel department in
consultation with HODs.
iii. Considering the area/ course content of training, in-house or external training
programme is organized. In-house training imparted by approved trainer.
3) Development training:
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Development training is organized for individual to enable them to be effective and
productive on their respective jobs. The focus of such training is on methods and
techniques for day-to-day work. The emphasis on knowledge, skills up gradation,
sharing of best practices across Wipro. The individual required to attain such training
are identified and recommended by personnel department to factory manager.
4) External training programme:
Training sponsorship forms for employees who are to be sent for external
training programme are filled by departmental head. The personnel department
scrutinizes such training requirement and submits recommendation to factory
manager. The final approval for such training programme is given by factory
manager.
5) On the job training:
Training programme is organized by every department for the following areas:
a) Unit operating procedure (U O P)
b) Plant safety procedure (P S P)
c) Plant emergency plan (P E P)
d) Unit emergency plan (U E P)
e) Job safety analysis (J S A)
f) ISO:9001:2000 Awareness
The common training subjects for all employees are:
First aid
Safety awareness
Hygiene sanitation and house keeping
First safety
The training records for On-the-job training are maintained by
respective department for their employees. Information is sent to
personnel department for such subjects in 6 months i.e., once in a
period of two quarters,
Quarter I and II
Quarter III and IV
6) Training Records:
Training records are maintained by personnel department for all In-House
programmes, including on-the –job training. Personnel department records all training
programmes in “Employee Training Record” for every individual.
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Training records are signed by employees for recording the proof of having
attended the training programmes. Training records are kept in the respective
departments and a copy is sent to personnel department.
In case of In-House training programmes conducted by internal and external
sources for an identified group of employees, the details are entered in training record
which is signed by all employees attending the programme. One copy is sent to
personnel department for making entry in “Employee Training Record”.
For the purpose of conducting training, a list of approved trainers from
internal sources is maintained. It is prepared by management representative and
approved by factory manager. All facilities are provided for the activity
Records of training feedback receive from the trainers and their sectional
heads are maintained by personnel department.
7) Feedback:
Employees undergoing other than On-The-Job training give feedback
on the adequacy and effectiveness or training programmes in the
feedback form to personnel department.
8) Review of Training programme:
The feedback received from trainers is periodically reviewed by Head
of Personnel in consultations with departmental heads too.
Make necessary changes/ improvements in programmes to
meet changing training needs of employees.
Evaluate training programmes conducted by external agencies
to decide relevancy for sponsoring candidates or continuing
with external agencies.
The reviews are recorded.
Training status is maintained on the training status format by
all the departments.
9) Maintenance of records:
a) The employee training records are maintained as long as the employee
is part of factory team.
b) All the quality records are maintained for a period of one year. After
the retention period is obsolete, records shall be removed from Quality
system records.
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Style:
Style refers to the leadership style that a leader/ a head adopts to lead a team/ the
members under him. It is not only concerned with leading but also controlling them. As
leadership style could be autocratic, democratic or group effort, the selection of type of style
depends on how and organization depends on how an organization decides to achieve its
goals. At Wipro, each department has HOD who is entirely responsible for the actions
carried by each member of his department. At wipro it is completely democratic and group
effort.
Democratic: Each staff member has the right to take any decision which would result
in befit to the company. The companies always encourage decisions which are
innovative in nature and which inurn would reduce the cost of doing a job.
Group effort: there is an emphasis to carryout a work through a “Team work” wiper
emphasizes on group effort: they believe that not one individual is superior to/ greater
than others.
Strategy:
The competition has made the existence of companies’ havoc. There are many
strategies followed by many countries to survive. Some strategies are:
Price strategies
Quality strategies
Reduce wastage etc.
At Wipro, they have been able to survive in the market by following the above
strategies more effectively. One of the major strategies followed by WCCLG is Six sigma
strategy. Wipro adopted Six sigma in May 1996. six sigma standard is mainly undertaken
to reduce the defects to the main level cycle time reduction, which can be enforced with
the help of learning and internalizing quality through disciplined, project based approach.
On 14th November 97, Wipro launched six sigma, the mother of all quality initiatives. In
simple terms, six sigm involves reducing defects to 3.4 in a million.
Six steps in Six sigma:
1) Identify the product your create or the service you provide.
SSIBM -2009 38
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2) Identify the customer(s) for your product or service and determine what they
consider as important.
3) Identify your needs to provide product/ service so that it satisfies the customer.
4) Define the process for doing the work.
5) Mistake proof the process and eliminate waste effort.
6) Ensure continuous improvement by measuring, analysing and controlling the
improved process.
Six sigma journey at WCCLG:
Started with a lot of skepticism in 1997.
Got early success at Tumkur and Amalner in 1998.
Expand and explode six sigma in all locations in 1999.
Created an example of success for the corporation in 1999.
Created a model for driving six sigma by target setting, reviewing structure and
institutionalizing game.
Few leanings from deploying 6 sigma
It is rigorous
High bench –marking
Requires commitment from the highest level of
management
Requires a lot of tolerance for endless questioning
Requires the business leader drive change from the
front in letter and spirit.
Reuires the tenacityand mental toughness and above
all a dedication to the pusuit of excellence
SSIBM -2009 39
WCCLG, TUMKUR
System
Inventory control System
An efficient and well equipped “stores” section is an asset to effective inventory
control. Stores are the place where raw material and other purchases are kept. In stores
department, the materials are classified according to the needs of the production department.
Purchasing is done through brokers. In case of any delay in delivery, debit note is
issued and penalty is levied for which broker is responsible. The commitment register is
maintained which is a book of prime checking. Separate books are maintained for imported
oils and other locally bought oils. The commercial manager is authorized to purchase the bulk
oil in expectation of increase in oil price in future but, the excess cash ploughed for this
purpose gets interested i.e. interest is charged for excess cash used
The materials after being ordered by purchase section come to the stores which
undergo for inspection, after that only material are stored as per the needs of various
production departments. The rejected materials are kept aside and sent back to suppliers.
Certain materials bought are tested by quality assurance lab and only after its verification
materials are accepted and stored.
The stores section is spacious and also has a cold storage area in which materials are
kept to prevent any kind of deterioration. Computerization of purchase departments facilitate
the easy access to information relating to the stores such as stock position, value, quantity of
raw material issued, quantity remaining etc.
The main functions of stores are:
Receipt of raw material from vendors after verifying delivery Chelan
Inspection of raw material
Issuing of user departments by issue slips
Updating of stock ( stock verification)
Stores work in close co-ordination with purchase and finance department. For
procurement of raw material, standard is set by commercial manager for maintaining quality
level which is an element according to Wipro.
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Staff
Staffs are the people who are thinkers of any organization. They play a key role in the
success of their respective departments and thereby reach the goals of an organization as a
whole. More importantly, the success depends on how the staff is categorized into different
levels, such that each level caries on the work duly bestowed on them.
DUTIES AND RESPONSIBILITIES
MANAGER MAINTENANCEResponsible for :-
Effective Maintenance of Integrated Management System through review and updating.
a) Planning and Implementation of Environmental Management Programs
b) Planning and Implementation of Safety Management Programs
Maintaining Integrated Management System records. Housekeeping and maintaining safe working condition in plant.
Identify training needs and imparting on the job training.
Proactive participation in various review meeting.
Calibration of critical gauges and equipments.
Identifying and implementing corrective and preventive actions.
Play a supportive role in Benchmarking exercise
Playing supportive role in maintaining efficiencies at all stages of
production operation.
Complying with IBR, Factories Act and Electrical Regulations..
Responsible for operation & Maintenance of TSP ammonia
Compressor, Boiler house.
Project estimation, planning and implementing.
Maintenance of equipment and machines in all the plants.
Spread a culture of excellence to vendors / contractors
Communicating relevant procedure / requirements to venders /
contractors
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OFFICER MAINTENANCE / SHIFT INCHARGE
Responsible for :-
Maintaining Integrated Management System records.
Planning and Implementation of Environmental Management Programs
Planning and Implementation of Safety Management Programs
Housekeeping and maintaining safe working condition in plant.
Calibration of all gauges and equipments.
Identifying and implementing corrective and preventive actions.
Playing supportive role in maintaining efficiencies at all stages of production
operation.
IBR, factories act and electrical regulations.
Responsible for operation and maintenance of TSP ammonia Compressor, Boiler
house
Project estimation, planning and execution.
Issue of spares and engg. Materials for use in plants.
Maintenance activities of various equipments in the plant.
OPERATORS :
Responsible for :-
Carry out & maintain the Maintenance activities, operation of Chilling plant
Ammonia Compressor plant.
Implementation of Environmental Management
Programs as per plan
Implementation of Safety Management Programs as
per plan
HELPERS/ASSISTANTS
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Responsible for :-
Implementation of Environmental Management Programs as per plan
Implementation of Safety Management Programs as per plan
Shared value
Winning is about making customers successful. Winning is about making all
stakeholders successful. In business, Winning is not about ‘Winning Against’ but it’s about
‘Winning With.’
Intensity to win is the burning desire to stretch and challenge our limits. It’s the desire
to realize and expand our potential. It’s about continuous innovation and striving to be better
every time. It’s about excelling in everything we do. It’s about multiplying forces as a team.
No one wins 100% of the time, but those who have the Intensity to Win, win more often than
not.
Vision:Fuelled by culture and values
Wipro is built on a foundation of Values. The values form the essence of their culture. The
values are a guide to their behavior. With 75,000 people across 29 countries, its’ the values
that ties them together that is what makes Wipro, Wipro. They call their values the Spirit of
Wipro.
The spirit of Wipro is deeply rooted in their history and in what they are, and at the
same time is soaring with their aspirations. Each Wiproite is expected to live the Spirit of
Wipro- manifest it in thought and action.
Spirit Of Wipro
Intensity to win
Make customers successful
Team, Innovate, Excel
Act with Sensitivity
Respect for the individual
Thoughtful and responsible
Unyielding Integrity
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Delivering on commitments
Honesty and fairness in action
The spirit of wipro is an invisible synthesis of all three statements. It means manifesting
intensity to win, acting with sensitivity and being unyielding on integrity all the time.
Mission:
Quality has always been a strong part of Wipro’s proposition. Wipro boasts of many
pioneering achievements in quality journey. Quality is focused on not only in the product
or service that touches its customers, but also on internal processes and as an enabler
facilitating on going business transformation to meet dynamic market challenges.
Quality policy:
Their quality policy shall be:
1. To sustain a competitive edge in quality through continuous assessment of
customers expectations and needs.
2. To pursue excellence in all aspects of production operation.
3. To promote a culture of conforming to specifications and requirements.
4. To involve people at all levels in the pursuit of excellence.
5. To spread a culture of excellence to all the vendors.
Environment, Health and Safety Policy
We at Wipro Consumer Care engaged in manufacture of Soaps, Fatty Acids, Glycerin
are committed to provide safe and healthy environment to all our employees and
stakeholders through suitable Environment Management Systems aimed at:
1. Prevention of pollution and workplace hazards through compliance
with relevant legislations, regulations, applicable to our organization and
operations.
2. Conservation of natural resources by efficient use of energy, water and
effective utilization of all raw materials and resources.
3. Prevention of losses by way of damages to environment, personal
injuries, loss of life case by fires, accidents and security lapses.
4. Continual improvement of Organization’s, environmental,
occupational health and safety performance through periodic reviews of
the systems, its processes and training of employees at all levels.
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SWOT Analysis of the Company
Strengths:
1) Wipro consumer care is certified by ISO 9001, ISO 14001, ISO
18001 and all these certifications integratedly contributed to Integrated Management
System.
2) Wipro’s business engine is powered by people, process and
infrastructure excellence. It is fuelled by culture and values, innovation, brand, good
governance and good citizenship.
3) Wipro are the pioneers of process excellence in Information
Technology. In the world of IT they have been the first to deploy and ingrain ISO,
Six Sigma. CMMi, PCMM and Lean.
4) Their scalable, robust processes have delivered value to customers
through their Global Delivery Model, Software Factory Model and the Offshore
Delivery Centre Model.
5) For consumer care and lighting products, it has access to more
than 1.5 million retail outlets. This distribution reach provides Wipro with a
significant competitive advantage and allows it to grow business with minimal
increases in personnel.
6) The ability to retain highly skilled personnel is enhanced by
leadership position, opportunities to work with leading edge technologies and focus
on training and compensation.
7) Wipro’s strengths in Research and Development services position
it to take advantage of a recovery in global research and development spending.
Weakness:
1) Wipro’s failure to complete fixed price, fixed time frame contracts on budget and
on time may negatively affect the profitability, which could decrease the value of
the shareholders investment.
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2) Wipro is investing substantial cash assets in new facilities and physical
infrastructure, if the business does not grow proportionately, the profitability could
be reduced.
3) Most of the client contracts can typically be terminated without
cause and with little or no notice or penalty, which could negatively impact Wipro’s
revenue and profitability.
4) Communication between the company and endusers is not
satisfactory.
Opportunities:
1) Wipro has the opportunity to engage in future acquisitions,
investments, strategic partnerships or other ventures that can enable to anticipate
and develop new services and enhance existing services in order to keep pace with
rapid changes and in echnology and the industries on which it focuses.
2) The BPO services revenue depend to a large extent on a small
number of clients and the revenue could decline if a major client reduces the volume
of services obtained. Wipro has the opportunity to increase the client base.
3) Low quality, delay in service, inability in customized design
and requirement, inferior finishing of other brands have posed an opportunity for
Wipro to capture major share in the market.
Threats:
1) Wipro focuses on high growth industries, such as networking and
communications. Any decrease in demand for technology in such industries may
significantly decrease the demand for its services, which may impair the growth and
cause the revenues to decline.
2) The revenues and expenses are difficult to predict due to fluctuation,
given the nature of the markets. This increases the likelihood that results could fall
below the expectation of market analysis, which could cause the price of equity
shares and ADSs to decline.
3) The revenues could be significantly affected if the governments, in
geographies that Wipro operates in, restrict companies from outsourcing work to
foreign corporations.
SSIBM -2009 46
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4) An economic slowdown, terrorist attacks in the states and other acts of
violence or war could delay or reduce the number of new purchase orders and
disrupt operations in the United States, thereby negatively affecting the financial
results and prospects.
5) Restrictions of immigration may affect the ability to compete for and
provide services to clients in the US, which could hamper growth and cause revenue
to decline.
SSIBM -2009 47
WCCLG, TUMKUR
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BALANCE SHEET AS ON 31ST MARCH 2007
(Rs. In Million)
SOURCES OF FUNDS
Shareholders’ Funds
Share capital
Share application money -
pending allotment
Reserves and surplus
Loan Funds
Secured loans
Unsecured loans
Minority interest
2007 2006
2,918
35
93,042
2,852
75
63,202
95,995 66,129
1,489
2,338
451
307
3,827
29
758
99,851 66,887
(BALANCE SHEET CONT....)
SSIBM -2009 49
WCCLG, TUMKUR
APPLICATION OF
FUNDS
Fixed Assets
Good will
Gross block
Less: Accumulated
depreciation
Net block
Capital work-in-progress and
advances
Investments
Deferred tax Assets (Net)
Current Assets, Loans and
Advances
Inventories
Sundry debtors
Cash and bank balance
Loans and Advances
Current Liabilities and Provisions Liabilities
provisions
Net Current Assets
9,477
37,287
18,993
3,528
24,816
12,911
18,294
10,191
11,905
6,250
37,962 21,683
33,249
590
4,150
29,391
19,822
16,387
30,812
594
2,065
21,272
8,858
12,818
69,750 45,013
33,667
8,033
18,527
12,688
41,700 31,215
28,050 13,798
99,851 66,887
SSIBM -2009 50
WCCLG, TUMKUR
SSIBM -2009 51