Steel; Comlex

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REPORT ON

INPLANT TRAINING

DONE AT

STEEL COMPLEX LIMITED

CALICUT, KERALA

Submitted By


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CONTENTS

Chapter 1 Introduction

Chapter 2 Design of training and organization study

2.1 Objectives of the training

2.2 Scope

2.3 MethodologyChapter 3 Industry profile

Chapter 4 Company profile

Chapter 5 Product profile

Chapter 6 Organization structure

6.1 Organization chart

Chapter 7 Nature and growth of organization

7.1 Vision

7.2 Mission

7.3 Goal

7.4 Quality policy

7.5 Capacity and product mix

7.6 Plant location and layout of the mill

Chapter 8 Management

Chapter 9 Functional areas

9.1 Works department

9.2 Materials department

9.3 Finance department

9.4 Personnel department

Chapter 10 The seeds of success story

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10.1 MOU sign

Chapter 11 SWOT analysis at SCL

11.1 Strength

11.2 Weakness

11.3 Opportunities

11.4 Threats

Chapter 12 Findings

Chapter 13 Suggestions and Recommendations

Chapter 14 Conclusion

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Acknowledgement

First of all I thanks ma father who given good support for doing this inplant training at

steel complex limited. Then I thank Sir. T.K. Sudhakaran who is the D.G.M(pers.) of Steel Complex Limite

who given a big support and ideas for me about how to do and what is inplant training.

Then the most helpful person for me in studying the plant deeply who is very friendly and

co-operating with me and he teach me a lot about the plant and its working Mr.Kuriakose is a supervisor

under production section Im really thank u sir for helping me,

Sir. Janardanan , Sir. Kutti Ali, Sir. Mohan Das, Sir. Mera these 4 persons are under 4different sections who given the detail class about their sections . And Im really thank full to all of them.

There are 2 trainers under mechanical and production sections Mr. Hithu Anand and Mr.Pratheesh who

helped me a lot in this training period they given me a moral support for doing this training and Im happy

with their support Im really thank full for their help and thanks for all other staffs of Steel Complex Limite

who helped me during the period of this training

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1. INTRODUCTION

Gods own country- Kerala is the place where the mini steel plant STEEL COMPLEX LIMITED

located. It contains different departments for its smooth functioning such as, personnel department, wo

department, financial department and commercial department. Each department works under efficient hea

The STEEL MAKERS OF THE STATE-SCL is a Government company. SCL produces quality steel in

production department. Quality control department tests the quality of scrap and analyze the heat samp

Maintenance department is responsible to maintain machinery as well as plant which contain electrical as w

as mechanical section. Material handling systems are also adopted in the concern. Sales department engag

in exchange of billets or steel to buyer. SCL situated in Feroke, Calicut. The company was origina

promoted in the joined sector between the Kerala State Industrial Development Corporation Ltd (KSIDC) athe private entrepreneur in 1969

SCL produces BIS products only. Centralized purchase is maintained by purchase department

supplies the needed material and minor item from the home country and major items are importing fro

foreign country. Human resources are treated in good way in SCL with the help of personnel departme

Attendance, recruitment, motivation, leaves etc comes under its circle. Life blood of the organization is giv

by finance department. Sales proceeds and financial aids of government are the main sources. It has its o

accounting policy. Money transactions are mainly with State Bank of India. It issues and rise money fro

shares, KSIDC, Government of Kerala, IDBI, ICICI. Above 200 employees are working in the organization

SCL has a proud position among the public sector undertaking in Kerala. Company maintains a go

relationship with customers as well as public. The government is initiative in the quality checking of the ste

In the initial stage company had a capacity of 37000 tones per annum. Latter it increased to 55000 tones p

annum and in 1986 took over Malabar steel re-rolling mill. Steel Authority of India (SAIL) is signed

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agreement with SCL. As we know, Government Company is a company which posses not less than 51%

share capital by the central government or government and partly by the central government and partly by o

or more state governments. The company was not functional during the period July to August 1995. T

company re-opened in august 1995. The vision and mission of the company make it different from oth

companies of steel making in Kerala. They are the steel maker of the state. Steel industry maintained

dominant role in the industrialized countries. As the steel makers SCL provide steel of different grades a

size to its users. SCL enjoys all the privileges as a government company in the production of steel in Kerala

2. DESIGN OF TRAINING AND ORGANIZATION STUDY

2.1 OBJECTIVES

. To familiarize with the organization

. To familiarize with different departments in the organization and their functions

. To understand thoroughly how key process in the organization are carried out

. To understand how information is used in organization for the purpose of decision making at various leve

. To relate theory with practice

. To study various problems faced by organization

. To find out strength and weakness of the organization

. To find out opportunities and threats faced by the organization

2.2 SCOPE

The study is basically aimed at the exploration of various functions undertaken by each departments of SC

Calicut. It provides a better understanding at functional level of each department i.e. works, materials, finan

and personal departments. Apart from that interaction and interrelationship between different departme

come under this study

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2.3 METHODOLOGY

This study was undertaken by visiting SCL at Calicut for duration of 75 days. The information was collect

by interacting with top management and concerned heads of various functional departments. Interactions w

the workers were also helpful. Few data were collected from secondary sources i.e. referring to compa

brochures, reports, manuals, web pages etc

3. INDUSTRIAL PROFILE

Steel industry in India is on an upswing because of the strong global and domestic deman

Indias rapid economic growth and soaring demand by sectors like infrastructure, real estate and automobil

at home and abroad, has put Indian steel industry on the global map. According to the latest report

International Iron and Steel Institute (IISI), India is the seventh largest steel producer in the world. The Indi

steel industry is organized in three categories i.e., the main producers, other major producers and second

producers. The main producer and other major producers have integrated steel making facility with pl

capacities over 0.5tm and utilize iron ore and coal/gas for production of steel. The main producers are Ta

steel, SAIL, and RINL, while the other major producers are ESSAR, ISPAT and JVSL. The secondary sec

is dispersed and consist of (1) Backward linkage from about 120 sponge iron producers that use iron ore a

non-coking coal. (2) Approximately 650 mini blast furnaces, electric arc furnaces, induction furnaces a

energy optimizing furnaces that use iron ore, sponge iron and melting scrap to produce steel; (3) Forwa

linkage with 650 re-rollers that roll out semis into finished steel products for consumer use.

SAIL, the largest public sector corporate entity have invested large amount for up gradation

technology and equipment at their integrated steel plants at Bhilai, Durgapur, Rorkela, Bokaro & Burnp

SAIL become largest manufacturer of steel in India and one of the top 10 steel makers in the world. Lar

scale modernization and renovation programs have helped SAIL to keep itself abreast of the developmentssteel technology and to translate the same to its steel plants so as to move with the time.

In order to meet the gap in demand for wire roads, rounds and structural, a new integrated steel pl

was established in Vizag styled as Rashtriya Ispat Nigam Ltd in 1992 with the capacity of 2 million tones

finished steel.

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The private sector integrated steel plant of the Tatas viz., Tata Iron & steel Ltd at Jamshedpur, which w

having a capacity of 2.5 million tones of saleable steel established a new Hot Strip Mill with a capacity of o

million tones.

Three majors in the secondary sector, who have leaped forward to expand though electric arc furna

route and consolidate their position through technological excellence were Essar group, Jindal group and Is

group. Essar group, the flagship company of the group, viz., Essar Gujarat Ltd., the largest manufacturer

hot briquetted iron, a substitute for steel scrap in steel making, has its three module plants in Hazira, Guja

with a capacity of 1.75 million tones. The Jindal organization comprises of 4 steel manufacturing compani

viz., Jindal strip Ltd., Saw pipes Ltd., Jindal Iron and Steel Ltd. The Nippon Denro Ispat Ltd., the flagsh

company of the group, have their plants near Nagpur, manufacturing about 4lakhs tones of steel

Other steel majors who have consolidated position by putting up new facilities or enhanced such facilitthrough modernization programs during the period were Lloyds steel, Bhushan steel, Bellary steel, Malav

steel, Bhuvalka steel etc.

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4. COMPANY PROFILE

SCL is the only mini steel plant owned by Govt. of Kerala. The company was origina

promoted in the joint sector, with KSIDC (Kerala State Industrial Development Corporation Ltd. ) a

private entrepreneur in 1969

The promoters of the company were S.A.Jiffery, A.K.Kadaekutty, N. Ramananda Rao, R.N.Menon a

K.T.Joseph etc

Initially the plant had a capacity of 37000 tones per annum. The company commenced commerc

production of mild, medium carbon and spring steel billets of 100mm square in Aug 1973.As a part

rehabilitation package KSIDC raised its share holding in SCL to more than 50% in 1979. And thus it beca

subsidiary of KSIDC.

In 1983, SCL undertook an expansion scheme by adding the third electric arc furnace by which t

production capacity was raised to 55000 tones / annum.

Because of unavailable operation and & working capital shortage, the company was required to BIFR

1992. The revival scheme submitted to BIFR trough the operating agency-IDBI; was approved in 23-0

1995.The scheme is for 10 years. The company is expected to make net profit and cash surplus from 199

1998.The net worth is expected to turn positive in the year 2003-2005, and the accumulated losses

expected to be wiped by 2005-2006.

The company was not functional during the period July to August 1995. The company re-opened

August 1995 and production started in October 1995 under the approved BIFR scheme.

Due to the previous constraints company was not able to achieve the consigned production of 4000 ton

per month and sales realization of 444.50lakhs per month. It was also expected to set up a rolling mill duri

the last quarter of 1996-1997 by suing the fund of differed sales tax

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A glut in the steel had teed the stock of material and down the production level. The product we

marketed only to the government departments during the last few years the company was finding its

difficult to collect the outstanding from those government departments, which effected the working capi

requirement of the company adversely

As 50% of the cost is involved in raw material scrap, procurement of item is very expensive. The scrap

usually imported from foreign countries under irrevocable letter of credit (LC) opened by the company.

When company was facing financial difficulties for opening LC and importing scrap, the company was l

without production. Due to raw material shortage, the company led to shortfall in production.

SCL made a joint venture with steel giant Steel Authority India Limited (SAIL) on 10th December 2008

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5. PRODUCT PROFILE

SCL marketing two kinds of products

1. Steel billets

2. Rolled steels

This billets and rods are including within three ISI grades. They are

A) IS2830 ( Standard Grade )

This include two grades

a) Grade1 = C20A ( Orange 2 dot )

Specification:

Cequi < 0.42(max)

C = (0.17-0.23)

Mn = (0.30-0.60)

Si = (0.10 min)

P&S = (0.050 max)

b) Grade2 = C20mmA ( Orange 1 dot )

Specification:

Cequi < 0.42 (max)

C = (0.17-0.23)Mn = (0.60-1%)

Si = (0.10 min)

P&S = (0.050 max)

B) IS2831 ( commercial grade )

Specification:

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C = (0.15-0.25)

Mn = (0.30-0.60)

Si = (0.10 min)

P&S = (0.055 max)

{Cequi = C+ Mn/6+ (Cr+Mo+V)/5+ (Ni+Cu)/15}

6. ORGANISATION STRUCTURE

Organization structure is a basic framework within which managers decision making behav

take place. Structure basically deals with relationships. It is an important scientific concept. All science try

discover the structural relationship in the phenomenon in which they are interested in management, it

needed to understand how organization are structured and how these structures are crested and maintained.

In a simple term, structure is a pattern in which various parts or components are interrelated

interconnected. The organization structure is the pattern of relationships among various activities and positi

Since this positions are held by various persons, the structure is that relationships among people in t

organization. The organization structure can be viewed as an established pattern of relationship among t

components of the organization. In a large and complex organization, structure is set forth initially by

design of the major components or subsystems and then by establishing relationship among these sub system

It is the patterning of these relationships with some degree of permanency, referred company as organizati

structure

Design of basic structure involves such issues as how the work of the organization will be divided a

assigned among various positions, groups, departments and how the coordination necessary to accompl

total organizational objectives

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6.1 ORGANIZATIONCHART

BOD

Chairman

CEO

DGM

Personnel

Department

DGM

Materials

DGMWorks

DGMFinance

Time

officerSecurity

officer

JuniorTime

officer

JuniorTime

officer

Time

keeperWatch

man

Asst.

ManagerPurchase

Asst.

Manager

Store

Asst.

ManagerSales

Asst.

Manager

Purchase

Asst.

Manager

Purchase

Asst.

Manager

Purchase

Manager

production

Senior Mgr

Shift

EngineerSupervisor

WorkerWorkers

Sr. (Ele)

Manager

DeputyManager

Senior

Engineer

ShiftEngineer

Workers

Workers

Shift

Engineer

SeniorEngg

Asst(Mec

Manager

Lab

attender

Chemist

Senior

Engineer

Asst.

ManagerFinance

Accountants

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7. NATURE AND GROWTH OF ORGANIZATION

The company is going with its ambition expansion program including

installation of TMT rolling mill. At present SCL is producing 100100 mm sq steel billet through electric

furnace route continuous casting technology. The billets produced in the plant are converted in to construct

steel item of the different specification. SCL also produces value added steel of En8, En9, En44, En45 grad

according to requirements of its customers. The company has recently entered in to the market of latest qual

steel called TMT bars. Major portion of the company products have been supplied to the major governme

departments. In order to strengthen the marketing and to boost sales, company has renovated its sale

company premises adjacent to national highwayWith strict code of standards SCL has over the year acquired a reputation for quality which paved t

way for joint venture with steel giant SAIL (Steel Authority of India Limited). The company has signed MO

agreement with SAIL on 5th May 2008 which is the milestone in history of SCL. SAIL has invested 5cror

for the installation of rolling mill which would open new opportunities for the Kerala state where t

production and marketing of steel will be increased to an optimum level with the brand name of SAIL w

incomparable quality. Company which commenced production on 28th Aug 1973 will complete 35 years

operation on 27th Aug 2008

7.1 VISION

The vision of the company is to become a global player committed to international quality standard

efficient pricing and excellent after sales service

The vision statement mean

1. To become a leading global player in the steel industry

2. International quality standard means the products and service offered by SCL will match with t

quality offered by competing international firms

3. Efficient pricing will compete with the price of competing firms

4. Treat the customer in the best possible manner after the sales

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7.2 MISSION

The mission of the company is:

To optimize the value like customer satisfaction and creating shareholder wealth

The mission statement mean

1. SCL aims to provide the best products and service for the customers

2. Shareholder wealth maximization would mean that the company would operate profitability a

generate enough resources for growth. To ensure such growth the company would identify profita

opportunities and diversify its operations

7.3 GOAL

1. To achieve customer satisfaction

2. To create and maintain very good working condition for the employee

3. To increase level of efficiency and effectiveness

4. To raise optimum level of share with the help of financial institution

5. To achieve sustained growth by expanding its business

6. To obtain sufficient level of profitability

7. To attain leadership status in the market

7.4 QUALITY POLICY

During refining the samples are analyzed in the laboratory and the process is controll

according to samples analysis. Steel produced in the plant is every time subjected to the stringent a

uncompromising quality control test. The company being the holder of a grade A grade BSI licen

authorized to issue certificate conforming to BIS specification. With strict compliance to prescribed co

standard SCL has over the year acquired a reputation for quality steel.

Quality control department has the responsibility to control and maintain the quality of the output (bille

and to grade according to the BIS standard and reporting to the production department. The department h

full-fledged metallurgical laboratory to perform this task.

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7.5 CAPACITY AND PRODUCT MIX

The steel demand in Kerala is mainly for domestic construction segment in the form of roads. At pres

the major portion of the supply is from secondary rollers, in the form of CTD (cold twisted and deforme

bars or TMT (thermo mechanically treated) bars. TMT bars have superior strength and mechanical propert

with lower carbon equivalent and substituted with conventional CDT bars. Because of this SCL planned to

up bar mill with TMT process for production of TMT bars. The planned mill shall produced TMT bars in s

ranked between 8mm to 25mm diameter. The capacity of the proposed mill shall be 50000t/y based of tw

shifts (16 hour/day)

7.6 PLANT LOCATION AND LAYOUT OF THE MIL

Several alternatives were explored for location of the planned mill.

Special attention was given to the following aspects, while selecting the location. Considering the aspects it

planned to install the bar mill adjacent and in line with the existing billet yard of continuous casting shop. T

input billets shall be stored in the existing billet storage bay. The charging gate of the recharging furnace sh

be installed in the existing billet storage bay. The charging gate of the reheating furnace entry is provided

directly from the existing billet storage bay. No intermediate handling shall be required under this

arrangement. Warm charging of billets in to the reheating furnace should also be possible. The bar mill shal

be installed within two new proposed bays, each bay shall be provided with an EOT crane for material

handling and maintenance of equipments. The different auxiliaries shall be provided either within bays or

adjusted to bay require

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8. MANAGEMENT

Steel complex limited is professionally managed by a team of experts in the steel fi

with adequate support from a committed board of directors. SCL has over 200 employees and an equ

number is employed indirectly in connected activities. With its progressive and dynamic approach, it ha

proud position among the public sector undertakings in Kerala

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9. FUNCTIONAL AREAS

SCL divided the entire organization as following departments and sub departments for its smoo

functioning. This helps to follow the management principles of division of labor and chain of command.

1. Works department

Production department

Quality department

Maintenance department

2. Materials department

Purchase department

Sales departmentMarketing department

Store department

3. Personnel department

4. Finance department

9.1WORKS DEPARTEMENT

Work department is concerned with the production and related activities of SCL. It is one of t

important departments. This department co ordinate the functions of production, quality control, mechani

and electrical work of SCL. This work department in SCL consists of 61 employees. Work department cons

of following sub department

Production department

Quality department

Maintenance department

9.1.1PRODUCTION DEPARTMENT

The entire production activities of the firm are under this department. SCL has a well establish

production planning and control system. This section deals with the issues of work orders, material issu

from store, dispatching, loading, scheduling, production progress and planning. The main aim of product

department is to produce goods at pr e established cost according to the specified quality with stipulated ti

schedule. Other objective is efficient and proper utilization of machinery, equipments, material, man pow

and manufacturing services.

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ORGANISATION STRUCTURE OF PRODUCTION DEPARTMEN

Manager

SeniorEngineer

ShiftEngineer Supervisor

Furnace

Man

Ladle Man Unskilledworkers

Mason Billet yardhelpers

Furnace

Manhelpers

Ladle Man

helpers

Mason

helpers

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PRODUCTION PROCESS

RAW MATERIALS

Iron scrap, iron ore, ferrosilicon, bauxite, coke powder, ferromanganese etc are the raw materials used

manufacturing of steel.

FURNACE

In steel complex three 10/12 tones electric arc furnace are there.

Its specifications are

Water cooledRefectories are rammed with running mix

Lined with high magnesite bricks of cost 150Rs each

Around 1180 bricks of 10 different dimensions are used for lining

Graphite electrodes of 300mm dia is used as electrode

Furnace can heat metal around (1200-1600) degree Celsius

Raw material

Charging scrap

Melting process and

quality controlMelting stage

Oxidation

stage

Reduction

stage

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Casting

Finished product


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Movements are controlled by the amplifying 80-250 volts and tilting forward 45 degree with the help

Melting by double slag process

The basic SCL process divided in to three stages

Scrap mixing

Melting process

Casting process

Scrap mixingDifferent types of old steel or iron products are collected with the help of a crane and it is charged .The

process of filling scrap in to furnace is called charging.

Melting processAfter charging furnace is shutting with furnace roof and 60KV electricity should be consumed for melting.

Electrode is used any supply of current to furnace. Average time required to melt one furnace full scrap is

nearly one hour. The electric furnace is charged with scrap from the scrap box (5/25tone crane), Charging is

done in two, three, or four stages with the help of charging buckets, swinging the roof out. After melting a

sample taken to lab for testing the contents of metal after getting the report required minerals are added to th

furnace this process is known asBlocking. After blocking required amount of lime stone is added to the

furnace, the calcium carbonate react with liquid metal and absorb all the impurities and float above the meta

The slag formed by lime stone is tilted and removed. The removed slag is further used in manufacturing of

cement. Then the molten metal sample is again taken to lab for making sure that the components is standard

not again blocking will be done if it is standard it will take to cone cast for making billets with the help of

ladles. Ladles are that which is to transfer molten metal to cone cast, it is lined with high alumina bricks and

is pre heated to maintain the temperature constant. With the help of ladle molten metal is transferred to cone

cast. During the melt down process scrap is completely melted to form liquid bath. During the refining perio

necessary treatment is given to steel in order to get the desired specification; raised to the required temperatu

and tapped in to ladle. The ladle is then taken to casting machine and casting done with the help of continuo

casting machine

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REDUCING SLAG PROCESS

A reducing slag process is employed when it is desired to conserve

alloying elements such as chromium. In this practice a refusing slag is formed as soon

as the charge is melted where by the elements which have been oxidized to form slag

Casting processThe casting is done with the help of cone cast. The molten metal is placed at the top

of the cone cast in ladle, from ladle nozzle (24mm dia) its transferred to tundish. Tundish it is the plate to

collect molten steel it consist of 2 nozzle having a dia of 14mm each garnex is used to cover the inside

portion of tundish. The main property of garnex is it can withstand in high temperature of days but it should

be continuous if it is cooled after transferring it will become ash. From tundish it is flow to mould. The mou

is full time oil passing in inside and its externally cooled, actually the mould is a curved surface of 4m radiu

and the cast is full time jerking. The mould cover is copper and rest all is made of cast iron before the steel

reach the on dummy bar will come near to the bottom of mould, the function of dummy bar is to pull the bil

to straighter. From straighter the curved billet will be straighten. Billet will be directly cooled by water. Afte

it comes from straighter it will cut in to desired dimensions. Then allow them to cool slowly in air

SAFETY

SCL takes more care on safety of employees by taking the following measures

Uniforms

Safety shoes

Helmets

Gloves

Goggles

Protective shield

9.1.2 QUALITY CONTROL DEPARTMENTQuality control department has a responsibility to control and maintain the qual

of billets and to grade it according to BIS standards and reporting it to production department. The departm

has full fledged laboratory to done this task. During refining the samples are analyzed. The products of t

company are every time subjected to the most stringent and uncompromising test. Being holder of a go

license company is authorized to issue certificates conforming BIS specification.

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STRUCTURE OF QUALITY CONTROL DEPARTMENT

FUNCTIONS

Inspect raw materials available

Test the quality of scrap

Checking the quality of billets

Checking the quality and size of rolled items

Analyze the heat

Control the elements such as carbon, manganese, silicon, sulfur and phosphorous etc are also the functio

of this department. The quality reports of the raw materials are sending to the deputy production manager a

all other departments. In shift, chemist will analyze the sample from each heat and its chemical content

reported to the production department, so that they can add or reduce each component in order to get a hi

quality product. The shift chemist analyzes final billets samples and the result will be given to the producti

department. Each and every billet thoroughly checked by shift chemist in order to give code and co

according to the quality standards laid down by BIS. Billet yard supervisor will assist him

9.1.3 MAINTANANCE DEPARTMENT

The responsibility of maintenance department is to keep the entire shift always ready for action. For the

smooth and effective functioning of company it is necessary to maintain the system properly. The

maintenance section is having two sub sections. They are electrical and mechanical section.

Senior

Engineer

Chemist

Lab at

ender

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9.1.3.1 ELECRICAL SECTION

The electrical maintenance is again under three sub sections.

Break down maintenance

Preventive maintenance

Periodic checking

This department consists of 26 employees

Maintenance can be of three types

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9.1.3

SeniorManager

Deputy

Manager

Senior

Engineer

Shift

Engineer

Electrician

operator

Scrap bay

sectionBillet bay

section

Crane

operator

Production

bay section

ORGANIZATION STRUCTURE OF ELECTRICALSECTION

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MECHANICAL SECTION

Same as electrical section the in time works of mechanical activities for t

company are performing under another head named mechanical section. Maintenance can be of three types

BREAKDOWN MAINTANANCE

There is a section which undertakes the job of maintaining, repairing the parts of machinery where bre

down or disasters had happened. This section is helpful to maintain such problems by them temporarily a

thus the production function will conduct smoothly without delays

PREVENTIVE MAINTANANCE

This works are going on at day time, not avoidable the problems at the time of functioning of the shop, thoinclude ordinary works of the company shortly to save company from un foreseen problems due to electri

disorders and they are by avoidable production delay.

PERIODICAL CHECKING

To check the oil value of machinery, to test the IR value of finding per month, taking the breaths etc are wor

including in periodical checking.

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Assistant

Manager

SeniorEngineer

ShiftEngineer

Fabricator Fitter Pump house

operator

DriverCutter Mechanic

helper

Pump house

helper

Cutterhelper

28

9.3.2.1. ORGANIZATION STRUCTURE OF


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9.2 MATERIALS DEPARTMENT

In steel complex materials department handle the total activities of sales, purchasing, marketing a

stores etc. Each of the department is handled by department heads. Materials department is the back bone

the company because the activities of the purchase and sales are done under this department without which

other activities including production.

Sales, purchase, and stores department are headed by general manager. When a change is needed to t

existing procedure or document like contract or agreement it shall be communicated to the top le

management through a particular format of amendment. The revised procedure or document revised from t

higher level shall be incorporated in the document in declaration in this department

DGMMaterials

AssistantManager

Purchase

AssistantManager

Stores

StaffsWeigh

bridge

assistant

StaffsScrap

charge

helpers

Stores

Assistant

Assistant

ManagerSales

ORGANIZATION STRUCTURE OF MATERIALSDEPARTMENT

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9.2.1 PURCHASE DEPARTMENT

Item purchased broadly mean for managerial activity, which cross the boundary of single act of buyin

It is a dynamic activity which including administration, accurate forecasting, effective planning, develop

capacity research and development for selection of materials and resources from which those may be bou

follow up to issue proper delivery and forms to enable the purchase department to carry out the standa

public. This department is concerned with purchase of each and every articles of SCL.

FUNCTIONS

In SCL the purchase department perform the following functions;

Supply the needed materials

Procure quality mistrials at minimum costTry to procure maximum materials from the manufactures itself

Ensure quality of bought out material

SOURCES OF SCRAP

SCL purchases minor items from home country and major items are importing from foreign countri

Advertising regarding the needs of SCL assist to achieve the procurements easily. Indigenous materials

getting mainly from manufacturers and through dealers

IMPORTING OF SCRAP

Importing of scrap mainly on the basis of open general license (OGM)

Following is the steps of import:

Scrap arriving bulk in containers

Arranging customs clearance, loading etc

Arranging supervisions, containers are opening only after supervision

Enter in ledgers-the details of arrived materials

Since SCL is an ultimate user of scraps 5.5% should be paid as daily while the others have to pay it by 35%

The major suppliers of the scrap are

1. Lioyets global trade-Dubai

2. A- Ahumudi Generator trade in Dubai

3. Midle east metal trading Dubai

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Some of the raw materials purchased from other states are as follows

Graphite electrode-Bangalore

Ferrosilicon-Chennai

Silicon Manganese-Salem

Petroleum coke-Bangalore

Lime stone-Salem

The following factors are considered for selecting the suitable source

1. Government sources

2. Lowest price

3. Quality

4. Credit availability etcBooks maintained in purchase department

Following are the books maintained in purchase department

Order register

Intend register

Bill forwarding register

Lorry receipt register

Material return note

Category use ledger

9.2.2 SALES DEPARTMENT

The sales department in SCL is concerned with marketing, selling and advertising

When buying steel, buy the best

Rolled from the best material,

Having correct diameter,

Sectional weight and

Carrying ISI mark,

Buy from steel complex

Time will prove strength. This was advertisement of SCL found in some old news papers and magazine

SCL is known as STEEL MAKERS OF THE STATE.

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CUSTOMERS

The main customers are Govt. department like PWD, KSEB, water authority, housing board, KSRD

construction cooperation forest department, REC University and other relevant institution

9.2.3 STORES DEPARTMENT

The store department has two sections for raw material and for general consumables. Each of this departmen

is responsible to handle the activities of corresponding work. There is one junior manager for store and

sufficient number of subordinates and staffs. The weighing machine is also maintained by this department

FUNCTIONS

1. Issuing and raising the materials

2. Maintain the stock3. Annual stock verifications

4. Check and maintain the stock of minor items

5. Stock and consumption return for every month

WEIGHING MACHINE

SCL is equipped with a load from weighing machine and it is under stores department

One qualified operator is appointed for its operation and the machine was computerized in 2005. It has t

capacity up to 40 tones. The components with weighing machine are load cell, displaying screen a

computer. The normal steps for weighing of a vehicle are

Weighing the empty vehicle

Weighing with load

Comparing with bill

If deviation noticed taking care about it. Standard deviation will be omitted when scrap is arrived

containers; it will be weighted from outside since the weighing machine cant occupy the length of containe

The weighing machine is used for company purpose only and its maintenance is contracted to outside partie

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9.3 FINANCE DEPARTMENT

Financial department is vital for financial planning and decision making. At steel complex limited, balan

sheet and profit and loss account provides a brief idea about the firms income and expenditure during t

period of its functioning. In SCL accounts department was headed by a joint manager (accounts), who wor

directly under managing director. It consists of one accountant and four accounting staff

The company computerized its accounting system during 1989, and then he software ZENIX was fou

out dated and time consuming. The company replaced the system to Tally for accounting and Java

payroll by 2002.All the sales proceeds are deposited in cash credit account of SBI Calicut and withdrawals

made from this account. Company is also having a treasury public account in district treasury Calicut. No

the company deposits at district treasury only as the limit of cash credit account had gone up to crores in S

against the cash credit limit of 6crore. This had happened one year back to development of letter of creopened by the company for import of raw material scrap.

RESPONSIBILITIES OF FINANCIAL DEPARTMENT

Since the department is directly under managing director, it helps to take decisions on the following matters

All financial activities like collection payment etc

Rising of income

Maintaining economic stability in the company

Entry of all the expenses in the account book

Prepare balance sheet and profit and loss account

Maintain all kinds of books of account

Preparation of annual report

9.4 PERSONNEL DEPARTMENT

Personnel management is an important part of management which is primarily concerned with hum

aspects of an organization. Its purpose is to establish good human relations at all levels of organization and

utilize human beings to achieve organizational goals

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FUNCTIONS

1. Solving the industry related problems

2. Find out the various factors effecting personal behavior

3. Counseling

4. Arrangements of motivational programs

5. Negotiation with trade union

6. Administration of attendance of employees

7. Payment of salary

8. Maintenance of discipline

9. Maintenance of various statuses like Factories Act, Industrial Dispute Act, ESI and PF etc

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ORGANIZATION STRUCTURE PERSONNEL DEPARTMENT

TRADE UNIONS

There are trade unions in the steel complex. The unions are:

CEO

Personnel

Time

officer

Security

officer

Junior timeofficer

Timekeeper

Juniorsecurity

officer

Watchman

ORGANIZATION STRUCTURE OFPURCHASE DEPARTMENT

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1. Steel Mazdoor Sangam affiliated to BMS

2. Steel complex Swathanthra Thozhilali Union affiliated to STU

3. Steel Workers Sangam affiliated to INTUC

4. Union affiliated to INLC

5. Mercantile employee association affiliated to INTUC

6. Steel mill workers union affiliated to AITUC

Management agree to permit two office bearers of each of the recognized union to attend conciliati

conference covered by labor department and one office bearer for attending cases at industrial tribunals a

labor courts in which they are parties. Union leaders who are not company employees will be allowed

represent the case of their members before management.

Company will issue panes for two office bearers of each union who are employees of the company and osuch office bearer can enter the company while not on duty showing the pan at the security. The facilities

per the above clause will be given only those unions who secure at least 15% support of the total employ

strength of the company when amendment is made

TIME KEEPING

A good time keeping system is maintained in the company. When an employee is entering to the duty th

punch their attendance card in the time office and punch out while going out after duty. The time officer kee

attendance record, leave register etc and prepare the salaries and wages of employees. Time keeping offi

also maintains other records like accident register, ESI, PF records etc.

RECREATION CLUB

The managing committees of recreation club consist of representatives of employees and management

reading room is available in the recreation club. Besides the club organize sports, cultural and social activiti

SHIFT TIMINGS

General shift time

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General shift time for office staff

9am to 5.00 pm with one hour lunch break. Attendance are subjected to be in the office from 8.00 am to 6

pm. General shift time for other employees in production, maintenance, quality control and stores will be fr

8.00 am to 4.30 pm with lunch break of half hour (12pm to 12.30 pm). This include drivers in vario

departments

OTHER SHIFTS

SHIFT:A 7 am to 3 pm

SHIFT:B 3 pm to 11 pm

SHIFT:C 11 pm to 7 am

NIGHT SHIFT ALLOWANCE

For employees who are working from 11.00 pm to 7.00 am are eligible for night shift allowance of Rs.2

per night shift

RECRUITMENT

The recruitment method consists of direct recruitment. Separate rules have been framed for managerstaff and other employees. In the case of promotion, the vacancy is notified in the connected department in t

company and promotion committees interview notice board and the applicants and suitable employees a

selected for promotion in accordance with the provision of promotion rules. During the last twelve years th

has not been much external recruitment. Outside the company recruitment from the panel of candidates a

sponsored by employment exchange. Recently recruitment in the company has bought under the control

Public Service Commission (PSC) and the rules for the recruitment are being framed through PSC

TRAINING

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In SCL training is an important function to be done under personal department. For a worker it

compulsory to be trained for 6 months under the department in which he is working. Only after the probatio

worker will be recognized as an employee. Training is given separately for different categories. The compa

is following the training methods of job apprenticeship and job training

Besides this the company is providing the training on strict working procedure (SWP), safety against hazar

house keeping etc. These programs include seminars, workshop, guidance etc. Company is usually sendi

representatives to international meeting

PERFORMANCE APPRAISAL

Performance appraisal in respect of employees will be written in every year. The report in respect o

year ending Dec 31 will be written by Jan 31 of succeeding year failure to attain minimum mark on the baof record in any factor will be communicated to the employee by 28th February each year. In case of employ

who fails to secure qualifying marks, their interim appraisal report will be made in respect of the half ye

ending June. The report should be made by July 15 and failure to obtain minimum pass mark will

communicated to the employee by July 31.

10. THE SEEDS OF A SUCCESS STORY

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10.1 MOU SIGN

Steel complex limited a Govt. of Kerala undertaking and SAIL (A Navaratna PSU under the

administrative control of ministry of steel), is the largest manufacturer of steel in India and steel products, a

present owns and operates 5 integrated steel plants at Bhilari, Bokoro, Rourkela, Durgapur and Burnpur had

entered a Joint Venture Agreement (JV) on 10.12.08 for setting up a Rolling Mill unit at SCL Calicut. The

agreement was entered in to explore the opportunities to harness their mutual potential and to work jointly fo

making steel complex Ltd., a modern steel plant on mutually beneficial terms. Also the warehousing facility

of SAIL will be operated very shortly at SCL Calicut.

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11. SWOT ANALYSIS ON STEEL COMPLEX LIMITED

Professional mangers, while resorting to management by objectives, resort to SWO

Analysis as a tool for assessment. Such an analysis on SCL will mean a study of strength, weakne

opportunity and threat faced by SCL as on today. Let us therefore analyze SCL on today

11.1 STRENGTHS

1. Today SCL is a well organized company with executives and other employees having long years

service in this very company

2. This is the only Mini steel plant in the state of Kerala by using electric arc furnace

3. SCL made joint venture with Steel Authority India Limited

4. Employees are intelligent and are able to pick the necessary skills for running the organization in a v

efficient way. They have already developed the necessary skills, and are willing to develop the sa

further

5. SCL has got BIS certificate for the production of Quality steel

6. Steel Complex Ltd is located in Calicut, which is fairly centrally located in Kerala to take on

demand of steel in Kerala

7. The company has efficient sales network

8. The product has acquired the trust of users9. SCL is the only mini steel plant in Kerala with more than 35 years of experience in the production a

marketing of steel

11.2 WEAKNESS

1. Unavailability of steel scrap- the major raw materials required by the plant is only about 20% in Ker

itself, may be another 10% available from Tamil Nadu is possible at reasonably economic prices. W

have to depend on import of balance scrap from abroad. Scrap isnt available at right quality at rig

time

2. SCL located very much away from the steel belt and industrialized areas. Hence our requirements

refractories, spares and such materials have to come from far away

3. Employees are sensitive in reacting to their requirements being not squarely met by the organization

for any delay in realizing their demands.

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4. Today we have to depend solely on electricity board for power, frequent failures on the part of KS

to supply continuous power at right voltage in adequate quantities disturbs the efficient working of

organization.

5. Unavailability of rolling mill-nowadays firm mainly depends on rolling mill from other state. T

leads to huge transportation charge and all

6. Working capital shortage. Being a government company, provide its products mainly to

government departments and autonomous bodies. The PWD section makes payment to the compa

only when they receive letter of credit from the government for the particular work for which mater

are supplied. This results in shortage of working capital, production loss and consequently huge burd

of interest

7. Shortage and high price of raw materials8. More effective management of the company is needed

11.3 OPPORTUNITIES

1) Sponge iron is available in India to replace scrap

2) Fast progressing technology is available in India, to improve the efficiency of our organization.

11.4 THREATS

1. Unexpected power failure and restrictions in usage of power from KSEB side

2. Sudden curbs in import of scrap by the Government

3. Competition from mini steel plant out side Kerala

4. Financial strain on the company due to fast increasing input costs, and the necessity felt to organ

large stocks of raw materials

5. Unwanted interference of political sector

6. Emergence of private companies in to this industry

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12. FINDINGS

In this industry, I proposed to conclude the study report by highlighting important findings

the study. The important findings has led to some suggestions for improving the profitability of the concern

1. As a government company SCL enjoys the leadership status in the market

2. It produces high level quality steel and negligible number of defective products

3. An agreement with SAIL helpful to attain the objective growth and expansion

4. Joint venture with SAIL is the seed of success story of SCL

5. SCL is planning to become a self sufficient unit. For that it is concentrating on production

6. Company makes arrangements to avoid over crowding in the production unit near the machin

7. SCL is paving the seeds of changes in its way. Stability in its production is productionpossible now in SCL

8. Due to liberalization the company need not suffer to import the raw material necessary

production

9. The main strategy of SCL is aiming at gaining a sustainable advantage over competit

through quality and reduced price

10. SCL trying to improve its position in the mind of the customers by following up and attend

any complaints

11. Proper time keeping system is there in SCL

12. SCL is more strict in quality of products and quality checking can be done through mod

technique of spectroscopy

13. There is proper control and coordination in the company

14. The company has facilities such as canteen, rest room etc

15. The company appointing general helpers to help different department

16. Water and power is supplied for whole day

17. There is a sales depot to sell the steel

18. The government checks the product quality

19. There are several weak spots like sales promotion measures presently undertaken by

company. It includes lack of advertisement support. That effect marketing efforts of

company negatively

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13. SUGGESTIONS AND RECOMMENTATIONS

1. Steel complex limited should continue in efforts to collect as much scrap as possible fro

indigenous sources, as well as outside sources. Constant efforts are required in this direction

2. Proper planning in getting all other raw materials, refractories and spares to maintain regu

production at the top most level possible

3. Gear up the sales activities in the best possible manner-keeping the watch always whether

any time billet sale is going to prove better than sale of rolled products. Although many tim

we find that rolled products sale is beneficial to the company, market fluctuations at ti

change the position very much, making billet sale itself as beneficial. This problem can be to

certain extend neutralized by having our own rolling mills

4. Installing a generator plant to take care of at least 30-40% of our energy requirements, so that

the future years when monsoon fails, the power cuts may be squarely met

5. Employees should understand companys problems, which periodically come and cooperate

achieve the best efficiency in all operations

6. Full efforts are to be put to take up the modern technologies to improve the efficiency

operations(a)Oxygen lancing(b)Scrap pre-heating(c)Foamy slag practice(d)Water coo

panels(e)Usage of sponge iron in increasing proportions are some of the developments , wh

may have to be adopted one by one

7. Cost consciousness in all operations should be deeply inculcated in all the employees minds

8. With better operations and profitability it should also be possible for us to go in for sponge ir

plant our self

9. As the product has achieved quality as well as cost competitiveness when compared with ot

competing brands, there is a scope for improvements in promotional measures for expandi

the market share for its products and in this regard include the following:

a) Various types of incentives must be allowable to the sellers on the basis of sales revenue

order to increase the order

b) Quantity and grade based differential pricing can be adopted to induce users to buy more

c) Aggressive advertisement campaign using print as well as electronic media can be used to furth

increase the brand of the product. This will support any market penetration strategy.

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14. CONCLUSION

In plant training at Steel Complex Limited was informative and interesting. It was given a great chance

be a part of the industry ad to understand the overall working and functioning of different departments. It

sure that Steel Complex Limited will become a dominant part in market share.

Documents

Steel; Comlex