Kerala Electrical & Allied Engineering Company LTD, Kundara

CHAPTER 1
INTRODUCTION

Organizations play a vital role in the

development of any economy. With the growth of industries, the economy will
prosper and generates more employment and opportunities. In an organization
there is group of individuals who work together to achieve a common goal. It
refers to the structure of relationships among positions and jobs built up for
realizing common objectives. It assembles the four Ms of management i.e. men,
machine, material and money.

In sociology "organization" is understood as planned,

coordinated and purposeful action of human beings to construct or compile a
common tangible or intangible product. This action is usually framed by formal
membership and form (institutional rules). Sociology distinguishes the term
organization into planned formal and unplanned informal (i.e. spontaneously
formed) organizations. Sociology analyzes organizations in the first line from an
institutional perspective. In this sense, organization is a permanent
arrangement of elements. These elements and their actions are determined by
rules so that a certain task can be fulfilled through a system of
coordinated division of labor.

An organization is defined by the elements that are

part of it (who belongs to the organization and who does not),
its communication (which elements communicate and how do they
communicate), its autonomy (Max Weber termed autonomy in this
context: Autocephaly)(which changes are executed autonomously by the

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Organization or its elements) And its rules of action compared to outside

events (what causes an organization to act as a collective actor?).

By coordinated and planned cooperation of the elements, the organization is

able to solve tasks that lie beyond the abilities of the single elements. The
price paid by the elements is the limitation of the degrees of freedom of the
elements.

Advantages of organizations are enhancement (more of the

same), addition (combination of different features), and extension.
Disadvantages can be inertness (through co-ordination) and loss of interaction.

KEL is one among the largest, most vibrant and

productive Public Sector Undertaking, and is fully owned by the Government
of Kerala. A multi-product engineering company, consistently catering to an
envious client base, ranging from the army and air force of India to world-
renowned space research organizations, highly competent engineering
companies to mammoth institutions likes the Indian Railways. The company
with four state-of-the-art manufacturing units spread across Kerala has a pan
India presence with marketing offices in major metros and select
cities.

OBJECTIVES:
The objective of the organizational study is to help the
MBA student to develop his ability to apply multi-disciplinary concepts, tools
and techniques to solve organizational problems and to evolve innovative
theoretical frame work.

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 This would help the student to get a practical and real time experience
about various aspect concerned with the organization and to relate it to
the concepts and theories studied in the classroom.
 To understand the different operations and their overall functions in an
organization.
 To study the organizational structure and hierarchical level.
 To study how the various managerial activities like planning, organizing,
directing, and controlling the various departments to achieve
organizational goals.
 To know the various departments such as marketing, financing, operations,
human resource management etc. and its activities and functions.

 To know about the growth prospective of the company

METHODOLOGY:
Primary data:
Primary data are those data collected directly from the organization. It is fresh
information collected by the direct interaction with the workers and discussion
with the managers and other staff in the organization

Secondary data:
Secondary data are those data collected by others. Data collected from business
journals, magazines, quality manuals, websites, brochures and annual reports of
the organizations.

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SCOPE:
Organizations study is used to know the working of an
organization and its various departments. And also know that how well the
organization function its activities. Mere reading of textual matters is not
enough for an MBA student, he should be practical in all sense. This
Organization study helps to know practical aspects of the theories which are
learned in the class room. Also this study helps to know about the real life
problems of the present business scenario. This study is beneficial to future
managers as they are put into the real life situations. The organization study
mainly deals with the environmental analysis of the organization. This is based
on the assumption that both its external and internal environment control the
organization. External factors are competitors, government policies, suppliers
and the society. Internal factors are company policies, employees, owners and
trade unions.

LIMITATIONS:
 Organizational limitations.
 Time constraints
 Possibility of biased information
 Broad frame work of the study

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CHAPTER II

INDUSTRIAL PROFILE

The electrical power industry provides the

production and delivery of electrical power (electrical energy), often known
as power, or electricity, in sufficient quantities to areas that
need electricity through a grid. Many households and businesses need access
to electricity, especially in developed nations, the demand being scarcer
in developing nations. Demand for electricity is derived from the requirement
for electricity in order to operate domestic appliances, office
equipment, industrial machinery and provide sufficient energy for both
domestic and commercial lighting, heating, cooking and industrial processes.
Because of this aspect of the industry, it is viewed as a public utility as
infrastructure.

The electrical power industry is commonly split up

into four processes. These are electricity such as a power station, electric
power transmission, electricity distribution and electricity retailing. In many
countries, electric power companies own the whole infrastructure from
generating stations to transmission and distribution infrastructure. For this
reason, electric power is viewed as a natural monopoly. The industry is
generally heavily regulated, often with controls and is frequently government-
owned and operated. The nature and state of market reform of the electricity
market often determines whether electric companies are able to be involved in
just some of these processes without having to own the entire infrastructure,
or citizens choose which components of infrastructure to patronize. In

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countries where electricity provision is deregulated, end-users of electricity

may opt for more costly green.

Although electricity had been known to be

produced as a result of the chemical reactions that take place in an electrolytic
cell since Alessandro Volta developed the voltaic pile in 1800, its production by
this means was, and still is, expensive. In 1831, Michael Faraday devised a
machine that generated electricity from rotary motion, but it took almost 50
years for the technology to reach a commercially viable stage. In 1878, in
the US, Thomas Edison developed and sold a commercially viable replacement
for gas lighting and heating using locally generated and distributed direct
current electricity.

The world's first public electricity supply was provided

in late 1881, when the streets of the Surrey town of Godalming in the UK were
lit with electric light. This system was powered from a water wheel on
the River Wey, which drove a Siemens alternator that supplied a number of arc
lamps within the town. This supply scheme also provided electricity to a
number of shops and premises.

Coinciding with this, in early 1882, Edison opened the world’s

first steam-powered electricity generating station at Holborn
Viaduct in London, where he had entered into an agreement with the City
Corporation for a period of three months to provide street lighting. In time he
had supplied a number of local consumers with electric light. The method of
supply was direct current (DC).

It was later on in the year in September 1882 that Edison opened

the Pearl Street Power Station in New York City and again it was a DC supply.
It was for this reason that the generation was close to or on the consumer's
premises as Edison had no means of voltage conversion.

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The voltage chosen for any electrical system is a compromise. Increasing

the voltage reduces the current and therefore reduces resistive losses in the
cable. Unfortunately it increases the danger from direct contact and also
increases the required insulation thickness. Furthermore some load types were
difficult or impossible to make for higher voltages.

Additionally, Robert Hammond, in December 1881,

demonstrated the new electric light in the Sussex town of Brighton in the UK
for a trial period. The ensuing success of this installation enabled Hammond to
put this venture on both a commercial and legal footing, as a number of shop
owners wanted to use the new electric light. Thus the Hammond Electricity
Supply Co. was launched. Whilst the Godalming and Holborn Viaduct Schemes
closed after a few years the Brighton Scheme continued on, and supply was in
1887 made available for 24 hours per day.

Nikola Tesla, who had worked for Edison for a short time
and appreciated the electrical theory in a way that Edison did not, devised an
alternative system using alternating current. Tesla realized that while doubling
the voltage would halve the current and reduce losses by three-quarters, only an
alternating current system allowed the transformation between voltage levels in
different parts of the system. This allowed efficient high voltages for
distribution where their risks could easily be mitigated by good design while
still allowing fairly safe voltages to be supplied to the loads. He went on to
develop the overall theory of his system, devising theoretical and practical
alternatives for all of the direct current appliances then in use, and patented his
novel ideas in 1887, in thirty separate patents.

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In 1888, Tesla's work came to the attention of George Westinghouse, who

owned a patent for a type of transformer that could deal with high power and
was easy to make. Westinghouse had been operating an alternating current
lighting plant in Great Barrington, Massachusetts since 1886. While
Westinghouse's system could use Edison's lights and had heaters, it did not have
a motor. With Tesla and his patents,

Westinghouse built a power system for a gold mine in Telluride,

Colorado in 1891, with a water driven 100horsepower (75 kW) generator
powering a 100 horsepower (75 kW) motor over a 2.5-mile (4 km) power
line.Almarian Decker finally invented the whole system of three-phase
power generating in Redlands, California in 1893. Then, in a deal with General
Electric, which Edison had been forced to sell, Westinghouse's company went
on to construct a power station at the Niagara Falls, with three 5,000
horsepower (3.7 MW) Tesla generators supplying electricity to
an aluminum smelter at Niagara and the town of Buffalo 22 miles (35 km)
away. The Niagara power station commenced operation on April 20, 1895.

Tesla's alternating current system remains the primary means of

delivering electrical energy to consumers throughout the world. While high-
voltage direct current (HVDC) is increasingly being used to transmit large
quantities of electricity over long distances or to connect
adjacent asynchronous power systems, the bulk of electricity generation,
transmission, distribution and retailing take place using alternating current.

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Electrical industry on growth path

After being in the doldrums towards the end of the

1990s, the Indian electrical equipment industry is seeing a revival in the last
couple of years with the growth rate averaging 7 per cent per annum. The next
two years should see a double digit growth rate, says P. Krishnakumar,
President of the Indian Electrical and Electronics Manufacturers' Association
(IEEMA).

There is no doubt that a major cause of this upsurge is

the reforms that have led to unbundling of monolithic, state-owned power
utilities and the corporatization of the transmission and distribution sectors.
The pressure on these new enterprises to be commercially viable has led to
the implementation of practices for reducing power losses (technical as well as
due to theft) in the pipeline and effect better recovery of dues. This, in turn,
has led to investment in new equipment and systems which have boosted the
fortunes of the equipment manufacturing industry.

Heavy electrical industry covers units manufacturing large

plants and machinery requires for power generation, transmission, distribution
and utilization. These include turbo-generators, boilers, and various types of
turbines, transformers, motors and switch gears. The major areas where the
heavy electrical equipments are used are the large projects for power generator
including nuclear power stations, petro chemical complexes, chemical plants,
integrated steel plants, non-ferrous metal units etc... The share of the domestic
equipment is about 66% of the country’s generation capacity.

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The industry has also established a strong manufacturing base

to the requirement for the equipment for the nuclear power plants in the
country. The domestic heavy electric equipment manufacturer are making use
of the developments in the global market with respect to the product designs
and upgrading of manufacturing and testing facilities. The industry is also
competitive in the field of design and engineering as the skill sets available in
the country are relatively less expensive.
The first public sector electrical equipment industry setup in
Kerala was the Metropolitan Engineering Company Llimited in Trivandrum in
1945. It was closely followed by the starting of Electrical and Allied Industries
Pvt. Ltd (EAIT) at Kundara in 1946. EAIT at 1964 was taken over by Govt.,
which was registered as a govt. of Kerala undertaking. At present there are five
public sector electrical equipment industries working in Kerala and they are.
 The metropolitan Engineering Co. Ltd started in1946
at Trivandrum their main products are isolators, fuses
and switches.
 United electrical Ltd in 1960 at Kollam their main
products are meters, motors and capacitors.
 Traco cables in 1960 at Angamaly their main products
are telephone cables and PVC cables.
 KEL was started in 1964 in Kundara their main
products are Alternators and transformers.

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CHAPTER III

COMPANY PROFILE

Established in 1964 in the State of Kerala, India, the Kerala Electrical &
Allied Engineering Co.Ltd. (KEL) is a multifaceted company fully owned by
the State government. Through its five production facilities, located in various
districts of the State, this ISO 9001: 2000 compliant company provides basic
engineering services / products besides executing projects of national
significance for high profile clients like the various defense establishments.

The company manufactures and markets products like general purpose

brushless alternators, brushless alternators for lighting and air-conditioning of
rail coaches, medium power and distribution transformers as well as
Structural Steel fabrications
The product categories for defense applications include high
frequency alternators, frequency convertors, special alternators and power
packs for missile projects. The power packs designed and supplied by the
company for missile projects like Falcon, Prithvi, Trishul and Akash have been
pioneering efforts. The company has also supplied special alternators to the
Army (Military Power Cars) and Air Force (Radar Applications).
The company's all-India marketing network with
regional offices in all metro cities cater to major institutional clients like the

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State Electricity Boards, Indian Railways and various defense establishments

besides the general market clients.

KEL’s products are marketed through an all-India network of marketing and

after sales service offices located in all the metro cities (New-Delhi, Bombay,
Madras, Calcutta, Kanpur, Bhopal, Hyderabad, Bangalore, Coimbatore and
Trivandrum. These offices provide all support services to the sales and
marketing team to guarantee complete customer satisfaction. Also there are
Sales / Liaison Officers at Coimbatore and Trivandrum.

Kerala Electrical and Allied Engineering Company Ltd,

known as KEL is a fully owned Government of Kerala undertaking engaged in
the manufacturing of Electrical Engineering goods.KEL with its corporate
office in Kochi has four manufacturing units in Kundara, Mamala, Olavakkot,
and Kasargod. In addition to these production centers, a project division for
execution of turnkey project a Research and Development wing and the
centralized marketing network are having their head quarters in the corporate
office .The total manpower strength of the company is 1342 and turnover in
1992-93 was Rs 50 crores.

The present product range of the company includes

Brushless Alternators for the Train Lighting and Air-conditioning, Ground
Power units (GPU) for air craft’s, high frequency alternators for defense
applications and Antarctica expedition, Distribution and Power Transformers
,HRC fuses , Switch Gears Brushless AC Generators, Brushless alternators for
automobile etc.

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Kerala Electrical & Allied Engineering Company LTD, Kundara

The various products developed by the KEL R&D wing are the
following:
 5 KVA, 400Hz alternator for Antarctica expedition for the defense
department of Govt. of India.
 20KW DC manual and self propelled type ground power units for
‘Vayudoot’ for starting their Aircrafts.
 30KVA rotary converter for radar application for helicopter starting
for Indian navy.
 3KV generator for windmill applications.
 5KV alternator for with rectifier regulator unit for battery charging in
locomotive engines.
 40KVA ground power unit for the requirements of starting of fighter
aircrafts like ‘MIRAGE’.
 90KVA ground power unit for Boeing and Air Bus Aircrafts and under
developing.
 20KVA alternator for powering mobile radar installations .This has
been tested, tried and accepted by Indian Air force.

KEL has also got a project wing. It is headed by the General Manager
attached to corporate office. they undertakes turnkey projects in design,
fabrication, supply and erection of gates, hoists and controlling equipments for
power and irrigation projects and civil works including heavy machinery
erection.

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Manufacturing Units:

1. Kundara Unit, Kollam District Inception: 1964(ISO9001:2000 QMS

certified unit):
The Kundara unit of KEL has been manufacturing Railways
the world over as the most efficient and reliable one more than 20000 Nos
Alternators manufactured by KEL are already in operation with the Indian
Railway alone.
KEL has set up a modern Iron Foundry with a capacity
of 1500 mts per annum, manufacturing spheroid Graphite Iron and Grey Iron
casting of various grades at Kundara unit. The division is equipped with fully
mechanized molding lines, sand plant, sand blurt systems, coreless induction
furnace and a laboratory with sophisticated material testing equipment to ensure
quality castings.

2. Mamala Unit, Ernakulum District Inception: 1968 (ISO 9001:2000 unit):

This unit is engaged in the production and distribution
of medium range power up to 1600 KVA 33 KV class with annual production
capacity of 6 lakhs KVA and the prime customer is Electricity Board. With over
two decades of expertise KEL transformers have earned the distinction of
approval from National Test House various electricity Boards and Power
corporations in the country. The structural division set up here in fully equipped
with sophisticated machine tools and machineries. These divisions undertake
design, fabrication and commissioning of hydraulic control gates and hoists for

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power and irrigation project cranes, pressure vessels and other industrial
structures.

3. Olavakkod Unit, Palakkad District Inception: 1977 LT Switch gear

Division:
This unit is engaged in the manufacture of KEL –
NORFUSE,HRC fuses and micro fuses under license from UNILEC,Frame
and confirming to IS 92244-979 ;The other products include ,isolator switches,
distribution fuse switch fuses etc.

4. Kasaragod Unit, Kasaragod District: Inception: 1990 an ISO 9001 Unit:

The unit was commissioned in 1990 for the
manufacture of Gensets and Alternators with technical collaborations from
Meteors Leroy Somers of France. The unit set up at an investment outlay of Rs
20 crores, has an installed capacity to manufacture 3000 Nos of all per annum
ranging from 15 to 1500 KVA.

KEL PRODUCT RANGE:

KUNDARA UNIT:
a) Inductor type Brushless alternator for train lighting and air-conditioning
1kw to 40 kw.
b) Inductor type Brushless alternator for automobiles and for charging
system in diesel engines 12 volts and 24 volts up to 45 Amps.
c) High frequency alternator (400 Hz) up to 100 KVA
d) Variable speed alternator for wind mill application up to 100 KVA.
e) Ground power units 28.5 volts DC 1500 Amps for starting Avro and
Dornier Aircrafts.
f) Ground power units for powering Boeing Aircrafts up to 100 KVA.

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g) Ground support aggregate with dual voltage system for starting wing
and other fighter aircrafts.

MAMALA UNIT:
a) Medium power and Distribution Transformers up to 1600KVA 33KV
class.
b) Design, fabrication, supply and erection of gates and hoists for irrigation
and power projects.
c) Structural steel fabrication to customer specifications.

OLAVAKKOT UNIT:
a) Fuse puller for micro fuse and nor fuse.
b) Cast Iron clad switch fuse up to 100 Amps to 415 Amps.
c) Sheet metal clad switch fuse up to 200 Amps 415 volts.
d) Sheet metal clad front handle switch fuse up to 100 Amps 415 volts.

KASARGOD UNIT:
Brushless AC generators (Alternators) from 15 KVA to 1500 KVA, at 1500 rpm
and 415 volts.

COMPATITORS:
The main competitors of KEL are;
 H.M.T.D Chennai
 Store India Calcutta.
 Press Tech India.
 Unitech
 Crompton Greaves Ltd Chennai.

MAJOR CUSTOMERS:
a) Indian railway

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b) Defense application.
c) Air force
d) Bharath Heavy Electrical (BHEL)
e) Bharath Earth movers Ltd (BEML)

Our Vision
To be a globally recognized enterprise committed to enhancing
stakeholder value by providing world class engineering and power system solutions
Our Mission
To achieve our vision by :

 Applying state-of-the-art technology, processes and innovative

M
solutions.
 Building long term relationship with stakeholders in an environment of
fair
 business ethics and values
 Creating value through sustainable and profitable growth
 Leveraging productivity through highly motivated and empowered
team

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ORGANISATIONAL STRUCTURE

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FUNCTIONAL DEPARTMENTS

The first real task in designing an Organization structure

is the identification of activities and to group them properly. The process of
grouping the activities is commonly known as departmentation. The basic
advantage of the specialization lies in the terms of efficiency with which the
work is performed because a person focuses his attention on a narrow aspect of
the work and he gets mastery over that aspect. Naturally this results into
performing the work more efficiently.
The major departments working operating in KEL are:
1. Planning Department
2. Finance and accounting Department.
3. Quality Assurance Department
4. Personnel and Administrative Department
5. Design and Development Department
6. Production Department
7. Marketing Department.
8. After sales department
9. Materials Management Department

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PLANNING DEPARTMENT

Planning is one of the important functions of the

management. The main function of the planning department is to plan and
schedule for the production and dispatch. This department includes both
planning and dispatch sectors.

POLICY
To establish and maintain a documented procedure for
planning the production, availability of materials and schedule of dispatches for
enabling the organization to provide the right product and services at the right
time, every time as per the customer requirements.

OBJRCTIVES
To minimize the difference between the times that planned and achieved
production.

FUNCTIONS
1. Get information from the marketing department about the orders
received. The information contains all details about the customer quality
and quantity.
2. Analysis of orders and decide about when to start and how to start.
3. Information is then passed to production department.
4. Check whether materials are available in the store department, if not,
then the information is passed on to the materials department to
purchase the materials.

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STRUCTURE OF PLANNING DEPARTMENT

GM

Manger
(HOD)

Assistant:
Manager

Forman
Grade 1

Charge
hand

PLANNING PROCESS/ACTIVITY:
1. Yearly planning
2. Quarterly planning
3. Monthly planning
4. Preparation of work order
5. Issuing work order and bill of materials
6. Raising PR
7. Monitoring production
8. Analysis of production short fall
9. Maintenance of records

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PLANNING PROCESS CHART:

START

QUATERLY PLAN

Monthly Plan Monthly

Production Plan

 Production Preparations of Work Ordered and

 MMD issue to various departments
 Store

Raising PR for
‘A’ Value items

Monitoring production and

analyzing of short fall

Short
fall
if
Request for DP.Extend to any
Marketing department Yes No

Despatch as per schedule

END

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WORK INSTRUCTION FOR PACKING FOR EXPORTS

1. Quality: The quality of packing material to be ensured packing material

to be chemically treated seasoned for sea worthiness
2. Check whether inspected seal is marked / punched before packing the
finished goods.
3. Compare and confirm the finished goods with delivery Chelan
4. Use hoist which loading heavy items.
5. Proper cushioning is given while packing the spares in wooden cases.
 Proper covering with jute to be given for avoiding transit
damages
 Silica gets to be used to prevent rusting and avoid moisture.
6. Witness: Ensure that the central excise personnel verify the finished
goods and sealed the packing.
7. Marking: All plywood/wooden boxes to be suitably marked with paint
indelible water proof ink with the following particulars on the outside
apart from the destination address.
 Purchase order number, Gross weight ,Net weight and box
measurement
 Box number to be indicated on at least three sides of the box.
8. Ensure that the packing is fumigated or pest control before shipment.
 Certificate to this effect is obtained and sent along with the
consignment.

WORK INSTRUCTION FOR LOADING

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1. Check whether the “inspected sea” is provided.

2. Make sure that the hoist in working condition.
3. Compare and confirm the finished goods with Delivery Chelan.
4. Make use of hoists while loading and unloading heavy items.

WORK INSTRUCTION FOR PACKING

 The quality of packing case is assured as per craving
 Check whether inspected seal is marked /punched before packing
the finished goods.
 Compare and confirm the finished goods with Delivery Chelan
 Use hoist while loading heavy items
 While loading the item which is not being packed.
a) Wooden rapiers are placed in between, when finished goods are
stacked in rows.
b) Paraffin papers/ paper cutting in between, when finished goods are
stacked one over the other.
I. Proper cushioning is given while packing the spares in wooden
cases /cartoons
1. While packing Alternator Pulleys, proper covering with Sack (jute)
is given for avoiding transit damages. Each packed material is
made identifiable by putting the address of the consignee with

Corresponding sale order number, item and quantity on the top of the packing,
follow these instructions strictly.

DISPATCHES

OBJECTIVE
Eliminate wrong dispatches and reduce transit damages to 50% within
one year.

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POLICY
Delivery of products at the right time.

FINISHED GOODS STORE;

PROCESS/ACTIVITY:

1 Checking of finished goods and storing (FG store)

2 Checking and preservation (FG store)
3 Packing of finished goods F.G.C.F.G
4 Intimation for preparation of D.C and excise gate pass
5 Delivery of finished goods as per D.C
6 Collection of acknowledge D.C from consignee

FLOW CHART FOR FINISHED GOODS STORE:

STAR
T

Checking preserving and storing

of finished goods

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Packing Packing of FG as per DC

instruction
s

Delivery of FG as per DC

Collecting of Acknowledgement,
Copy of DC from consignee

END

FINANCE DEPARTMENT

Finance department is headed by finance manager. The main

responsibility of finance managers is to take finance decisions which include
investment decisions. Financing decisions, dividend decisions etc. The manager
has to keep a constant touch with all other departments and also keep all the

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records of transactions. At the end of every year he is responsible for making

the financial statements.
Financial statements are prepared for the purpose of presenting a
periodical review of report on progress by the management and deal with the
status of investment in the business and the results achieved during the uses of
fund. Financial statements reflect a combination of recorded facts, accounting
principles and personal judgments. In order to understand the financial
performance of a company it is necessary to analyse the balance sheet and
profit and loss accounts.
To maintain all books of account up to date as per the statutory
requirements and to manage working capital, preparation of budget, ensuring
discipline in the case of financial resources preparation and analysis books of
account. The main books of account maintained in KEL are cash book, bank
book, purchase register, Journal register pay roll statement and central excise
records. The software used is TALLY 9.
Sales turnover of KEL during 2005-06 is 12 crores and during 2006-2007
around 40 crores. In KEL the financial statements are audited internally and
externally. The internal audit is done by the corporate office while the external
audit is done by Government officials.

The main responsibility of the finance department is to make:

 Investment Decision
 Financing Decision
 Dividend Decision
The manager has to keep in touch with all the departments and also
keep all the records of the day to day transactions at the end of the year prepare
financial statements.

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Kerala Electrical & Allied Engineering Company LTD, Kundara

STRUCTURE OF FINANCE DEPARTMENT:

AMF

Assistance
Accounting Officer

JO

Clerk

Cashier

In KEL the accounts and books are computerized. The

software used maintaining records are Tally 9 release 2.11. The books
maintained in this software are:
 Cash book
 Bank book
 Journal register
 Purchase
 Sales
 VAT records
 Central excise records

Balance Sheet as at 31st March 2003, published on 18-02-2005

Particulars 31-03-2003 31-03-2002

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Kerala Electrical & Allied Engineering Company LTD, Kundara

I. Source of Funds
a) Share Holders Fund
a) Capital 683780774 561680774
b) Reserves and surplus 4049631 3981803
b) Loan funds
a) Secured Loans 190733192 300624005
b) Unsecured Loans 78301147 3299884
Total 956864744 869586466

II. Application of Funds

1. Fixed assets
a. Gross Block 250096232 249001661
b. Depreciation 172885169 159381073
c. Net Block 77211063 89620588
d. Project W.I.P 90864374 89055216

2. Investments 50500 50500

3. Current assets, loans and advances 451222041 320319519
Less: current liabilities and provision 280309051 228843522
Net current assets 170912990 91475997
4. Deferred revenue expenditure 9650 14476
5. Profit& loss A/C 617816167 599369689
Total 956864744 869586466

Profit and loss A/C for the year ended 31st march 2003
Particulars 31-03-2003 31-03-2002

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Kerala Electrical & Allied Engineering Company LTD, Kundara

Income
Sales, works, contract, job works and miscellaneous 496325769 349185891
Increase (Decrease) in stocks 62668813 (22042022)
Total 558994582 327143869
Expenditure
Materials Consumed 232139715 150743292
Interest & Bank charge 38473225 38511861
Other expenses 293279111 236086639
Depreciation 13544184 13834705
Deferred revenue expenses written off 4825 4825
Total 577441060 439181322

(Loss)/ Profit (18446478) (112037453)

SIGNIFICANT ACCOUNTING POLICIES

1. Accounting convention

The financial statement is prepared under historical cost convention on

accrual basis and in complains with the Companies Act of 1956.
2. Fixed asset

Fixed assets are stated at cost less depreciation. Assets and liabilities are
recorded at higher cost.

3. Depreciation

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Kerala Electrical & Allied Engineering Company LTD, Kundara

Depreciation of fixed asset has been provided as per rates

indicated in line XIV of Companies Act 1956 under return down value method
4. Inventories
 Finished goods are valued at cost on market price whichever is less;
excise duty is also taken into consideration
 Scraps are valued at net realization value.
 Goods in transit are valued at cost.
5. Sales
 Sales comprise of sales of goods and services including excise duty.
 Price variation claims on sales effective are accounted for on accrual
basis.
6. Consumption
 Loose tools issued to shop floor is stated as consumed and return of as
scrap
 Consumption of materials for production is computed on derived basis.
7. Liability on material on transit

The liability on account of bank charges and other expenses on material in

transit on the date of closing is accounted on approval basis.

8. Research and development:

Capital expenditure on R&D is treated as in addition to fixed assets and

revenue expenditure on R&D is charged to P&L account under appropriate
heads in the year in which it is incurred.

9. Contingent liability:

Contingent liabilities are not provided for, but disclosed in notes on accounts.

MAJOR BANKS:

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Kerala Electrical & Allied Engineering Company LTD, Kundara

 State Bank of Travancore

 State Bank of India
 Federal Bank Limited
 State Bank of Mysore
 Kerala State Corporation Bank Limited

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Kerala Electrical & Allied Engineering Company LTD, Kundara

QUALITY ASSURANCE DEPARTMENT

POLICY

Quality policy of QAD is to ensure the quality of

materials/components to the concerned areas for further processing.

OBJECTIVES
 Materials offered along with GRNs will be inspected within 10 days from
the date of receipt of GRN.
 Reducing the defective materials returning from production to 50%
within one year.

KEL has established, documented , implemented ,maintains and

continuously improved its quality management systems, with the requirements
of ISO 9001:2000 by different process involved in understand the customer
requirements , manufacturing and supply of products and after sales services as
well as management process are identified and its sequence and instructions are
determined. The process map is developed detailing the sequence and control
points for each step involved in the process. A process interaction chart
determining the sequence and interaction of the process is developed.

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Kerala Electrical & Allied Engineering Company LTD, Kundara

QUALITY ASSURANCE DEPARTMENT CHART

GENERAL MANAGER

Manager (HOD-QA)

AM(Mechanical) AM (Electrical)

W W W
W W W W W W

The Quality Management System documentation includes:

a) KEL’s stated quality policy and the quality objectives

b) Quality manual.
c) Quality system procedures including the six documented procedure

required by ISO 9001:2000.

d) Control of documents.
e) Control of records.
f) Internal Audit.
g) Control of non-conforming products.
h) Corrective action.
i) Preventive action.
f) Drawings, work instructions and check list.
g) Records.

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Kerala Electrical & Allied Engineering Company LTD, Kundara

Quality verification is done at three stages

In the first stage, they verify every incoming raw

material against the relevant ISO specification. When the materials fails to meet
the criteria, the whole lot of batch is rejected, however when it require the
material urgently department will reject only the facility item.

The production department offers the materials as

various hold points for verification then QAD checks the products and
maintains are record of conformity this is the second stage of verification.
Final test for the reliability is carried out by KEL, on all Alternators and
Regulators as per specification given by RITS and BIT. Its intended operation
will be verified for a specified period of time under certain experimental
condition. No products shall be dispatched until activities specified in quality
plan or documented procedure has been completed
Quality testing is done at QAD (Quality
Assurance Department). Quality testing is done at three stages. They are
i. Incoming material.
ii. Incoming process.
iii. Final testing.
When materials arrive from suppliers, it arrives with a test certificate certifying
the quality of product. In case of well known suppliers like SAIL the certificate
is accepted and no further quality testing is done. In other vendors testing is
compulsory. The test conducted in the quality departments have to meet certain
criteria according to ISO 9001:2000 regulations. When the material fails to
meet the criteria, the whole lot of batch is rejected.

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Kerala Electrical & Allied Engineering Company LTD, Kundara

Quality Manual:
The Quality Management System is established, maintained and
documented in the quality manual. It is developed as a policy manual to
describe the Quality Management System followed in the Organisation. The
quality manual includes.
 Quality policy and objectives, Organization structure, responsibilities,
authorities and scope.
 Reference to procedures and process maps.
 Sequence and interaction of the processes.
 Policy of the company regarding each process/activity.
The quality manual is reviewed and approved by General Manager for
correctness and suitability to meet the Organization requirements.
Process of Material Inspection:

Offering of
Materials
for
Inspection

Inspection of Materials
and Records data

Indicating
Inspection
and test status

Maintaining
Records

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Kerala Electrical & Allied Engineering Company LTD, Kundara

PERSONNEL AND ADMINISTRATION DEPARTMENT:

The term personnel management has now been

modified as Human Resource Management. But in KEL, they still follow the
old term Personnel Management. The Personnel Management controls the
personals in the company.
POLICY
To achieve the competency of our skilled manpower through constant
training, education and experience in order to gain product quality.
OBJECTIVE
To educate and train our skilled manpower on a half yearly basis at the
rate of 8 hours training per employee to upgrade the skill level and to reduce
the rate of absenteeism to 5% from 7% which will be measured on a monthly
basis.

Duties of Personnel Manger:

 Manpower planning
 Recruitment
 Selection
 Placement procedures
 Training and Development
 Performance Appraisal
 Transfer and promotion
 Employees welfare administration
 Disciplinary action
 Wages and Salary administration
 Leave Administration

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Kerala Electrical & Allied Engineering Company LTD, Kundara

Structure of Personnel and Administration:

GM

Manager Personnel
and Administration

JO’s

Security Inspector
Chief time Keeper

Security Guard
Time Keepers Staffs

Recruitment:

Mainly three types of recruitment are following in KEL. They are :

1. Direct recruitment.
2. Internal recruitment.
3. External recruitment.

1) Direct Recruitment:
On the basis of rules and regulations prevailing in this company, the
management can recruit the technical hands such as unskilled workers, semi
skilled workers and as supervisors. They are appointed as apprentice trainee.

38 JAI BHARATH SCHOOL OF MANAGEMENT STUDIES.

Kerala Electrical & Allied Engineering Company LTD, Kundara

They are recruited through employment exchanges. Sometimes security

guards are also appointed through direct recruitment.
2) Internal recruitment.
In certain cases, company conducts an internal notification for the higher
post. The qualifications, experience, additional qualifications etc required must
be clearly specified in the notification. The internal recruitment is through
promotion, only after considering the merits and performance of the employees.
3) External recruitment:
In this type, recruitment is done through Kerala Public Service
Commission (KPSC).On the vacancies intimated by the management, KPSC
advertises through the media calling appropriate candidates. The test/interview
is conducted by the KPSC and posts them to the company. Clerical post
appointments i.e. typist, stenographers, drivers and junior assistant etc are
through public service commission.

PROCESS:
 Receiving recruitment for labors from the entire department.
 Sending letters to registered and corporate office.
 Informing employment exchange ,RI centre (RO)
 Receive list of candidate from the agency
 Fixing interview date
 Form the interview board
 Sending call letter
 Conducting interview
 Sending appointment letter to candidate (RO)
 Joining report preparation
 Allocation of candidate to required department

Clerical post appointment:

 Typist

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Kerala Electrical & Allied Engineering Company LTD, Kundara

 Stenographers
 Drivers
 Junior assistants

Are appointed through PSC

Training and Development:

It’s an effective tool for employee’s development. Three types of training

are mainly adopted in KEL.
1. Induction Training.
2. External Training.
3. Internal Training.

1) Induction training:
The fresh employees and the transferred employees from other units must
undergo this training. A training schedule is prepared by the personal
department and directs the employees to the various sections or departments for
the training.

2) External training:

This is given to the permanent employees such as engineers, officers and

other executives conducted by external agencies or external organization.

3) Internal training:

40 JAI BHARATH SCHOOL OF MANAGEMENT STUDIES.

Kerala Electrical & Allied Engineering Company LTD, Kundara

This type of training is given to technical persons working in various

division/sections. Apprentice training also given as a part of internal training.
Work rotation is another technique for internal training.

Management gives training for a period of one year for the fresh
employees. After the successful completion of training he is recruited on
probation and after he is appointed in regular service. This training is
compulsory for the company.

TRAINING PROCESS:

1. Sending circular to all HODs about the training need of employees of the
concerned department in prescribed format.
2. Receiving the responses.
3. Preparation on annual training plan
4. Scheduling monthly plan
5. Preparation of panel for training (external and internal)
6. Keeping attendance of participants
7. Evaluation and feedback from participants.

Welfare Measures:

The welfare measures provided by KEL are:

 Loan Facilities
 Canteen
 Recreation Club
 Education benefit
 Death Assistance
 Funeral Assistance
 Retirement Assistance
 Benefit on registration

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Kerala Electrical & Allied Engineering Company LTD, Kundara

 Marriage Contribution
 Provident fund
 ESI
 Accident Benefits
 Maternity leave
 Drinking Water
 Latrine & Bathroom
 Telephone

Some of the allowances given to the employees are:

 Washing allowance
 Night shift allowance
 Milk allowance

OTHER BENEFITS:
 NSA-allowance of rupees 5/shift
 WA- rupees 16.50 /month
 MA-rupees 2.50/day
 Risk allowances rupees 75/month
 HR-rupees 30/month
 Uniform cloth allowances- one pair of shoes and two pair of socks every
year
 Duplicating allowance-rupees 16.50 pm for one person
 Heat treatment allowance- rupees 35/month for one or two person who
are in finance.

Wage and Salary Administration:

Wages:

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Kerala Electrical & Allied Engineering Company LTD, Kundara

Wage depends on the long term agreements exist for duration of four
years. Wages are fixed after bilateral discussion with labour unions and
management. These wages are enacted only after the approval from the
government.
There is no profit sharing, but they get indirect benefits out of realized
profits.

Salary:
Salary=Basic Pay +DA+ HRA+ Other allowance
DA is based on the cost of living index at Kollam district. Department
of Economics and Statistics fix the index. Government fixes the DA for
officers. Allowances include washing allowance, risk allowance, heat treatment
allowance, cycle allowance and night shift allowance etc.

Health and Safety:

KEL provides high facilities for health and safety for employees.
Ventilation for each room, canteen and rest rooms at convenient places and
recreation club is also functioning in there.
For safety measures company provides shoes and socks once in one
year for the relevant workers, uniform cloths to the workers once in two years;
goggles (protective glass) are provided to the welders and furnace workers.

Time Office Attendance:

Punching system is being followed for all employees. Attendance bonus
is used for motivating employees. The scheme provides with 12 days bonus
salary for employees with full attendance.
There are 3 shifts with a general shifts:

Ist Shift 8:00am to 4:00pm

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Kerala Electrical & Allied Engineering Company LTD, Kundara

IInd Shift 4:00pm to 12:00am

IIrd Shift 12:00am to 8:00am
General
8:00am to 4:30pm
Shift

Transfer:
At the time of appointment every employee is given a declaration to the
management regarding, they are willing to work in all over India wherever the
company has units and regional offices. As per the manpower requirements
transfer the employees to different units. In the case when employee request for
transfer as per his convenience, if the management found the reason is relevant
they gives consent. But the employee is posted as the junior most employee of
that unit in the same category.

Promotion:
It is based on the promotion policy agreement; it’s strictly based on the
seniority of service. If there is vacancy in higher post, then promote to the
higher post otherwise give the higher grade scale.

Promotion Channel:
POST Completion Promoted post
of years
Unskilled worker 8 Semiskilled worker
Semiskilled worker 8 Skilled worker
Skilled worker 10 Special skilled worker
Special skilled worker 6 Charge hand.
Charge hand. 6 Foreman

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Kerala Electrical & Allied Engineering Company LTD, Kundara

POST Completion Promoted post

of years
Foreman 6 Asst Engineer
Asst Engineer 6 Engineer
Engineer 6 Asst Manager
Asst Manager 6 Manager
Manager 6 Dy. General Manager
Dy. General Manager 6 General Manager
General Manager 6 Executive Manager

MANPOWER PLANNING
One of the important function of Personnel and
Administrative management is manpower planning. It means correct utilization
of manpower. They undertake the task of creating human capacities which
ensures that fully contributes to the total organizational performance. They also
have the responsibility for the determination of manpower recruitment of
organization both in the right number and of the right kind
.

SELECTION:
Selection is mainly for the ex-service men, that is, by an agency through
application, scrutiny test. The persons selected are based on interview for
placement of job.
GRIEVANCE HANDLING:
The grievances are also handled by Personnel and
Administrative department. They collect the grievances of the employees and
informed to the top level mangers and solve their problems. There is a
suggestion box inside the organization for grievances of the employees.
LEAVE STRUCTURE:
 Casual leave-14 days

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Kerala Electrical & Allied Engineering Company LTD, Kundara

 Sick leave -14 days (for more than 3 consecutive days sick leave, a
medical certificate should be produced )
 Privilege leave-30 days.

DISCIPLINARY ACTION:
The Personnel and Administrative department is
responsible for disciplinary actions against violation of rules and regulations
which are mentioned in the standing order.
SOME CASES ARE;
 Willful in subordination
 Disobedience
 Fraud
 Theft
 Dishonesty
 Illegal absence
 Sexual harassment

PROCESS
1. Case reporting to the GM
2. Issue show cause memo
3. Warning or enquiry
4. Inform to head office
5. Approval for enquiry and posting of enquiry officers
6. Meeting management witness and employee witness

PUNISHMENT ACTIONS
 Suspension
 Increment banning
 Dismissal

TRADE UNIONS AND LABOUR RELATIONS:

KEL has got 4 affiliated unions:

 Electrical & Allied workers Union (UTUC)

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Kerala Electrical & Allied Engineering Company LTD, Kundara

 Electrical & Allied Industries employee union (INTUC)

 KEL employees organization (STU)
 KEL employees union (CITU)

DESIGN AND DEVELOPMENT:

OBJECTIVE
To design the alternators and its accessories as per design plan on receipt
of the approved drawings / customer supplied drawings within the delivery
period with zero design errors, so that field failures are eliminated and by
limiting the number of prototypes to be made before freezing the design as two.

POLICY
To establish and maintain a documented procedure for designing the right
product at the right time. This is achieved through continual improvement
through constant technology up-gradation and team work at all levels.

STRUCTURE:

GM

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Kerala Electrical & Allied Engineering Company LTD, Kundara

HOD (D&DD)

Asst: Manager Draughtsman GR.1

PROCESS

 Tender enquiry from marketing department.

 Feasibility study.
 Order and specialization.
 Design Plan.
 Collection and review of design input.
 Preparation of design outputs such as drawings, technical data sheets and
bill of materials.
 Review of design outputs.
 Prototype manufacturing
 Verification of design.
 Validation of design
 Review of validated design
 Modification, if required
 Offering of prototype for customer inspection

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Kerala Electrical & Allied Engineering Company LTD, Kundara

DESIGN AND DEVELOPMENT FLOW CHART:

TENDER ENQUIRY FROM

MARKETING DEPARTMEENT

Feasibility Study

Order and Specification

Review Customer Feedback

Design Plan

Preparation of design
Collection & outputs such as drawings
Review of TOS, BOM etc
Design Inputs
Review of Design outputs
Verification

Production QAD

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Kerala Electrical & Allied Engineering Company LTD, Kundara

Planning Materials

Prototype Manufacturing

Verification

Validation

Design freezing

DESIGN PLAN
1. Collection of input
a) Customers specification
b) Results of contractual review
c) Inter face with other department
2. Design calculation
3. Design review
4. Preparation of drawings
5. Preparation of material list
6. Preparation of material specification
7. Preparation of acceptance criteria
8. Design review (output)
9. Modification after review
10.Issue of drawings, TDs, material list
11.Prototype manufacturing
12.Preparation of Quality Assurance Plan and Validation Plan
13.Validation of design
14.Review of validation design
15.Modification if required
16.Offering of prototype for customer inspection

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Kerala Electrical & Allied Engineering Company LTD, Kundara

QUALITY SYSTEM PROCEDURE FOR CONTROL OF DOCUMENT

OBJECTIVE
To make available required documents at all centers of
operations related to quality system, to follow and demonstrate conformity to
the specified requirements incorporating the latest revision.
SCOPE:
All documents such as quality system manual, quality
system procedures, quality plan, and quality assurance plan, acceptance criteria
drawing , specifications, work instructions formats, charts, material list and
master list of document.

QUALITY SYSTEM PROCEDURE FOR CORRECTIVE ACTION

OBJECTIVE
To establish and maintain a documented procedure for
implementing corrective action to eliminate the causes of existing non –
conformities at all levels of the quality system ,to prevent the recurrence of non
conformities.

SCOPE

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Kerala Electrical & Allied Engineering Company LTD, Kundara

All functional areas of organizations wherever quality system is implemented.

OVERALL RESPONSIBILITY
Committee or continual improvement

QUALITY SYSTEM PROCEDURE FOR PREVENTIVE ACTION

OBJECTIVE:
To establish and maintain a documented procedure for
implementing preventive action to eliminate the causes of potential non-
conformities at all levels of the quality system to prevent the occurrence of non
conformities.

SCOPE
All functional areas of organization wherever quality system is implemented

OVERALL RESPONSIBILITY
Committee to continual improvement.

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Kerala Electrical & Allied Engineering Company LTD, Kundara

PRODUCTION DEPARTMENT:

POLICY
To provide right products at the right time which results in customer
satisfaction through team work.
OBJECTIVE
To establish and maintain a documented procedure for carrying out the
activities of production.
Key words in the policy shall be achieved through the functional
objectives stated below:
 Right Product:
Reducing the Rework/ Rejection / In-house failures. Reducing
rework/failures by 25% at the following stages:
a) Shaft ground.
b) End shield/turned/drilled.
c) High Voltage Test/Wound frames.
d) Testing of Alternator with Rectifier regulator unit.
 Right Time:
Achieving better on-time delivery by increasing the number of satisfied
customers by 85% within the next three months and 90% within one year.
 Team Work:

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Kerala Electrical & Allied Engineering Company LTD, Kundara

Improving employee involvement and team work through generation of

two suggestions per quarter and implementing a minimum of two improvement
projects per year.

STRUCTURE OF PRODUCTION DEPARTMENT

GM

HOD
(Prodt)

M (Produt.) AM (Prodt.) AM (Prodt.)

(W&A) (M/c shop & fab.) (Regulator)

Forman
(M/c shop)

Production Process

 Planning the daily activities and intimation of material shortage.

 Receipt of material tools/drawings.
 Projecting the requirements of measuring and testing the equipments.
 Production process.
 Review of non-critical items found during process.
 Offering inspection to QAD.
 Finished goods transfer note issuing.

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Kerala Electrical & Allied Engineering Company LTD, Kundara

 Return of excess material

 Monitoring production.
 Break down intimation.

Equipments used in production

o Lathes rolling machine.
o Welding machine.
o Hydraulic pressure.
o Drilling machine.
o Grooving machine.
o Sheering machine.
Shops involved in production
o Foundry unit.
o Fabrication Shop.
o Old machine shop.
o New machine shop.
o Winding & Assembling.
o Regulator section.
1. Foundry unit:
Founding or casting is the process of producing metal/alloy components
parts of desired shape by pouring the molten metal/alloy into a prepared mould
and then allowing the metal/alloy to cool& solidify. The solidified piece of
metal/alloy is known as casting.
2. Fabrication shop:
Activities in here are plate cutting, profile cutting, press work, rolling etc.
3. Machine shop:
The main works in here is boring, drilling, grooving, facing,
centering, turning, milling, grinding and balancing

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Kerala Electrical & Allied Engineering Company LTD, Kundara

4. Winding and assembling:

The main activities in here are phase coil and field coil winding, brazing
preparation, paper cutting, varnishing, and assembly of alternator components
and finishing.
5.Regulator section:
This is an independent division. In here electronic regulator for the
alternator is prepared. Regulator is used for rectifying and regulates the
alternator current.
Production Process flow:
START

Floating of enquiry
to approved

Comparison of
quotations

Purchase proposal

Purchase order
preparations and
placement of PO

Receipt of GRN,
interaction with
supplier

YES Whether
any
concessi
on
required
Whether
Intimate Yes items can NO
store to be taken
take fresh Retention of quality
on
GRN records
concessio
n
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Kerala Electrical & Allied Engineering Company LTD, Kundara

No Settlement of
Accounts
Return the
material
END
END

Maintenance team:
In KEL Kundara two types of maintenance teams are operation. They are
mechanical maintenance and electrical maintenance teams. Maintenance
department of KEL is responsible for keeping up the Plant and equipment in the
plant in good condition. There are mainly three types of maintenance.

1. Preventive maintenance:
In Preventive maintenance, the staff ensures that the machine is
being operated at the optimum possible condition. The various precautions that
are taken by the staff are
a) Checking the amount of lubricating oil.
b) Checking the various motors.
c) Wear and tear check in gears and other moving parts of
machines.
d) Working of various switches.
e) Maintenance of the various drive belts.
2. Breakdown maintenance:
When the machine has some serious defaults, then
breakdown maintenances is done. This is done at the fastest possible place with

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Kerala Electrical & Allied Engineering Company LTD, Kundara

affecting the smooth functioning of the operation of the company, ensured by

assigning a competent worker in dealing with the fault machine.
3. Predictive maintenance:
In this type, maintenance is done by fitting gauge like devices
which give an idea of the working of the machine. The maintenance may be
either automatic as it is in the case of the pressure relief valve in air compressor
or would have to be done manually like changing the lubrication oil within the
time specified by the manufacturer of the machine.

MARKETING DEPARTMENT

The KEL’s main product is 4.5 KW and 25 KW alternators. The main

customers of KEL are Indian Railways, L&T, BHEL (Bharath Heavy Electrical
LTD), BEML (Bharath Earth Moving LTD) and Defense (Prithvi and Trishul
missiles). But always the end user is Indian Railways. As the target customer is
Indian railway, KEL’s marketing department has no need for marketing their
product. So there are no market research and analysis activities done by
marketing department.
KEL participate in open tender as and when railways invites tenders, for
this KEL’s services centers are located in all the metropolitan cities. These
offices give all support services to sale and marketing lean to guarantee
complete customer satisfaction.
As the number of customers are limited, so short channel of distribution.
OBJECTIVE
 To establish and maintain a quality system suitable for organization’s
vision and commitments towards marketing and sales of products and
services rendered to the customer.

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 To improve upon customer satisfaction by reducing customer

complaints, other than product complaints, by 50%within 6 months.
 To meet customers need both stated and implied in order to maximize
the order realization by 10% within one year
 To increase customer satisfaction by 10% of the existing index by
avoiding delay in providing on time services by 10%within one year.

POLICY
 To provide customer satisfaction and confidence to the customers that
quality is being maintained and will be continuously sustained in the
delivered products by providing the right product at the right time.
SCOPE
 The procedure covers all tender enquires, submission of tenders,
acceptance and amendment of orders execution, invoicing and collection
of payments.

PROCESS

1) Liaisons with customer for receipt of tender/enquires.

2) Purchase of tender documents.
3) Evaluation and review – Technical/Commercial
4) Pricing
5) Preparation of offer
6) Submission of tender
7) Tender opening
8) Negotiation

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9) Preparation of offer for spares

10) Follow up for order
11) Receipt of order review and acceptance
12) Order register
13) Amendments from customer
14) Production planning
15) Issue of sale order and follow up.

16) Road permits/ Octroi exemption.

17) Arranging of Inspection
18) Preparation of delivery Chelan
19) Invoicing
20) Collection of payments
21) Warranty servicing
22) Training to customers
23) Records (marketing)

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MARKETING PROCESS CHART

START

Enquiry direct/ from railway website

Purchasing of tender document Direct/ from railway website

Evaluation and review

Pricing

Preparation of offer for Machine and spares

Submission of tender

Tender opening

Negotiation

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Follow up of order

Receipts of order review and acceptance

Order entry register

Amendments from customer if any

WORK INSTRUCTION FOR EXPORT:

1. Check I.E.C (Import Export Code) License whether valid nor not.
2. Check whether registration with export promotion council is valid.
3. Rate should be quoted as C.I.F(Cost Insurance and Freight) or F.O.B
(Free On Board)
4. In case of C.I.F, sea/air freight charges to be collected from freight
operators and insurance from insurance agencies.
5. Case should be taken on clauses like payment terms warranty after sales
service etc.
6. Payment clause should be advance payment or through conformed
irrevocable letter of credit at sight opened by reputed bank.

On receipt of purchase order, other than technical parameters ensure the

following:
1. Payment clause should be conformed irrevocable L.C (Letter Of Credit) at
sight by a reputed bank or advance.
2. Verify L.C, clause by clause internally and finally by our negotiating bank.
3. C.I.F or F.O.B rates.
4. Freight by air or sea.
ON ACCEPTANCE OF PURCHASE ORDER:
1. Arrange Insurance E.C.G.C (Export Credit Guarantee Corporation) to
avoid any risk on political instability at buyer country.
2. Arrange marine insurance.

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3. Inform Central Excise department and sale tax department regarding the
export.

ON FINAL INSPECTION AND DISPATCH:

1. Painting should perfect conforming to international standard and

packing should be sea worthy.
2. Prepare packing list and invoice.
3. Arrange central excise verification closing of packing box and sealing.
4. Ensure that packing boxes should be marked with sufficient
information asked in the purchase order.
5. Arrange fumigation, if required.
6. Arrange customs formalities at sea port by engaging freight agencies
7. Arrange shipping
8. Collect documents through freight agent for obtaining the D.E.P.B
(Deputy Entitlement Pass Book) benefits.

The main registers used by marketing department are:

a. Tender Register.
b. Sale order Register.
c. Payment Register.

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AFTER SALES DEPARTMENT:

POLICY:
To provide customer satisfaction and confidence to the customers
that quality is being maintained and will be continuously sustained in the
delivered products by providing the right product at the right time.

OBJECTIVE:
 To improve upon customer satisfaction by reducing customer
complaints, other than product complaints, by 50%within 6 months.
 To meet customers need both stated and implied in order to maximize
the order realization by 10% within one year
 To increase customer satisfaction by 10% of the existing index by
avoiding delay in providing on time services by 10%within one year.

Department structure

GM

AM

ST (1) ST (2) SUPERVISOR

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 GM - General Manager
 AM - Assistant Manager
 ST - Service Technician

PROCESS OF AFTER SALES DEPT

START

1. Co-ordination with regional officer regarding

 To attend service calls

 Arrangement of return of faulty alternator

 Dispatch of service spares

2. Making report against customer returned goods

3. Failure investigation and corrective action to be taken

4. Arrangement of dispatch of rectified alternator to

consignee

5. Report regarding failure to MR

END

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After sales service:

1. Co-ordination with regional offices regarding
a. To attend service calls.
b. Arrangement of return of faulty alternator.
c. Dispatch of serviced spares.
2. Making report against customer returned goods.
3. Failure investigation and corrective action to be taken.
4. Arrangement of dispatch of rectified alternator to consignee.
5. Report regarding failure to management review committee.

Process step:
a. Preventive action
o Periodic visit to customers (Manual and price list).
o Intimation of design changes.
o Training to customers
b. Servicing
o Customer complaints
o warranty servicing and training
o Maintaining tools, instruments and spares.
o Maintaining calibration.

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MATERIAL MANAGEMENT DEPARTMENT:

Materials Management means managing materials in an

organization with the main objective of reducing the cost and efficient handling
of materials at all stages and sections in an undertaking. It includes purchasing,
storage, inventory control, material handling standardization etc. This
department deals with material cost, its supply utilization and handling.

POLICY:
To establish and maintain the process for procurement of right material and
services at right time, from approved suppliers as our requirement and those of
our customers.

OBJECTIVE:
 To purchase materials without deviation from specification by reducing
concessional acceptance by 50% from the present level.
 To achieve 100% on time delivery by suppliers and to develop alternative

source for tailor made items.

FUNCTIONS
1. Procurement of required quality and quantity of materials at the best
price for production as per design.
2. Maintaining continuity of supply to ensure production schedule at
minimum investment i.e.; inventory handling.

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3. Avoidance of duplication of materials leading to wastage of materials

and equipments.
4. Creation of goodwill for the company through dealing with the suppliers
ABC analysis is used in inventory handling of materials.

The main duty of materials department includes:

1. Procurement of required quality and quantity of materials at the best

price for production as per design.
2. Maintaining continuity of supply to ensure production schedule at
minimum investment. i.e. inventory handling.
3. Avoidance of duplication of materials leading to wastage of materials and
equipment.
4. Creation of goodwill for the company through dealing with suppliers.

ABC analysis is used in inventory handling of materials. When the

reorder level reached, tender invites for the supply of materials.

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STRUCTURE OF MATERIALS DEPARTMENT:

G.M

HOD (MMD)

Manager Ass:Engineer
store dept

Ass:Manager Job Officer Job Officer

Ass:Manager 2 1 2
1

a) GENERAL STORE

OBJECTIVE
To establish and maintain a quality system procedure for
receiving, storing and issuing of materials.
SCOPE
This covers all materials used in production, installation and servicing of plant
and machinery.

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QUALITY SYSTEM PROCEDURE

1. Receipt of material
2. Quality verification
3. Preparation of GRNS
4. Offering for inspection
5. Inspection status
6. Rejection intimation
7. Segregation
8. Issue of materials
9. Issue of materials to sub contractors
10.Stock intimation

b) PURCHASING

OBJECTIVE
To establish and maintain a quality procedure for purchase of
goods and services to ensure that all materials and services obtained from
outside sources fully meet our requirements and those of our customers.

SCOPE
This covers all materials and services and used in
production, installation and development of Technology and servicing of plant
and machinery.

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QUALITY SYSTEM PROCEDURE

1. Vetting of PR
2. Registration of sub-suppliers ,New vendors
3. Floating of enquiry
4. Emergency purchase
5. Comparison of quotation
6. Purchase order preparation
7. Placement of purchase orders
8. Purchase order amendment
9. Follow up of purchase order
10.Sub-contracting jobs
11.Advice in discrepancies in supplier
12.Rejection intimation
13.Rejection Return
14.Acceptance with deviation
15.Issue under positive recall
16.Retention of quality records
17.Settlement of payment

c) VENDOR RATING

OBJECTIVE
To establish and maintain a system for vendor rating,
ensure consistency and reliability in quality and delivery of products.

SCOPE:
All vendors supplying items that goes directly or indirectly into the final
product.

QUALITY SYSTEM PROCEDURE

1. Vendor evaluation
2. Vendor rating

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3. Final vendors assessment

4. Vendor re assessment

CHAPTER IV
FINDINGS AND SUGGESTIONS

FINDINGS:
 Good employee employer relationship.
 Quality products
 Better customer dealings

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 Better after sales services.

 Conduct training programs
 Higher turnover ratio
 The major customer of KEL kundara is Railway.
 Kundara KEL is on the path of modernization
 Lack of computerization
 Products are manufactured on the basis of customer requirements.
 Bio-metric system is used for time keeping
 KEL follows three shift system
 Workers are recruited through PSC, direct recruitment, and employment
exchange.
 The level of job satisfaction achieved by workers after the
implementation of ISO 9001-2000 in KEL is very good.
 Presently no recruitment processes are carried on by KEL.

SUGGESTIONS:
 Introduce computerization
 Recruit new employees
 Timely delivery of products
 The political interference should reduce for the proper functioning of
the company.
 New technology should be introduced for the efficient working of the
organization.
 Timely purchase of raw materials.
 Effective utilization of funds.
 Better safety measures should be provided.
 First aid services should be availed inside the premises.
 Transportation facility to the workers for time keeping.

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CHAPTER V
SWOT ANALYSIS

STRENGTHS:
 Good brand image
 ISO 9001-2000 certificate
 It has well developed quality control system
 Intensive training and development program for employees and
employers
 It is fully equipped to manufactures Brushless Alternators right from
basic raw materials without depending on external sources.
 World class quality for the product
 Wide marketing network
 Hardworking employers and employees
 Good customer relation
 Brother hood relationship among employers and employees
 After sales service at various metro cities.

WEAKNESS:

 Being a public sector Company, so a lot of political interference is there

and which affect the smooth functioning of the company.
 Lack of computerization and information technology applications.
 There is no ERP system.
 Often production shortage is there due to shortage of raw materials.
 Planned product is not achieved.

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 Lack of financial support which will affect the smooth functioning of the
company.
 There is no provision for appointment of new employees.
 Turnover ratio is more.
 Employee employer relation is higher, due to this factor the
responsibility is lacking.

OPPORTUNITY:
 Globalization
 There is more scope for E.business application
 There is more scope for potential market.
 There is more scope for the use of highly equipped machinery with
latest technology.
 Can prepare customized product for customers that are according to the
customer requirements.

THREATS:
 High competition from the competitiors
 Increasing price of the raw materials.
 High political interference.
 Depends only on major customers

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CHAPTER VI
CONCLUSION

KEL was established in 1947 in Kerala and is fully owned by state govt.
of Kerala. It is an ISO 9001:2000 certified company. It employs 1500
employees which includes more than 250 highly qualified and well-trained
professional engineers; KEL is one of the biggest public sector companies in
the State.
The company is in tune with modern technology. Products are marketed
through all India network marketing and after sales service offices are located
in all metropolitan cities. The major customer is Indian railway.

Even though the company faces some problems in recent years, the
company is now in a profitable path.

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ABBREVATION:
 QSM Quality System Manual
 QSP Quality System Procedure
 QAP Quality Assurance Plan
 QP Quality Plan
 HOD Head Of The Department
 MR Management Representative
 DDC Document and Data Control
 BIS Bureau of Indian Standards
 PM Process Map
 MS Machine Shop
 FAB Fabrication
 WA Winding and Assembly
 REG Regulator
 AM Assistant Manager
 PR Purchase Requisition
 GRN Goods Received Note
 PO Purchase Order
 MMD Materials Mgmt Department
 DC Delivery Chelan

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 ALT Alternator
 SPECS Specification
 IOC Indian Office Communication

REFERENCES:

 Quality manual
 Annual report of KEL
 Company brochures and prospectus
 www.kelindia.com

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