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An Organization Study at

Autokast LTD

Submitted in partial fulfillment for the requirement for the award of the

degree

MASTER OF BUSINESS ADMINISTRATION

M G UNIVERSITY

KOTTAYAM

Submitted by

Register No:

Under the guidance of

Mr.:

Faculty Member

MBA Department, BSS IT MISSION THYACDU

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DECLARATION

I declare that the project report entitled An organization study on AutokastLTD Submitted by me for the award of Master of Business Administration of M.GUniversity is my own work. The report has not been submitted for the award of anyother degree of this university or any university.

Place: Aluva

Date:

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ACKNOWLEDGEMENT

First of all I wish to express my deep gratitude and thanks to God who helpedus in completing the organization study successfully.

I shall remain grateful to. Mr.:BSS IT MISSIONTHYACDU for his amble guidance and encouragement for completing theorganization study. I am also extremely grateful to faculty member for their valuablesuggestions and advice regarding this work. I also express my profound gratitude to

project guide .,Sr. Manager, HRM for his valuable guidance andtimely advice and well-wishers for Encouragement given to us during the course ofthe project. It is my pleasure to express a deep sense of grateful to

.,

Sr. Manager, Safety & Environment Department & MIS without hisuntiring efforts and tremendous background information this work would not havematerialized. I express my sincere

Thanks to all the staff of Autokast LTD for their co-operation during mystudy in the company. Last but not least we thank my parents and for all their moralsupport and help, they Had given to me.

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CONTENTS

Introduction Industry Profile Company Profile Product Profile Customer Profile Departmentalization

Human Resource department Finance department

Production department

Planning department

Commercial department

Purchase department

Marketing department

Quality Control department

Research and Development department

Store department Safety department

SWOT Analysis Findings Suggestions & Recommendations Conclusion Bibliography

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INTRODUCTION

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Orga n iz a tion s tudy de a l s w i th c r i t i c a l e va lua t ion a nd a na lys i s

of a l l the aspec ts of

p a r t i c u l a r f i r m . I t g i v e s a c l e a r i d e a a b o u t t h e f u n c t i o n s a n d

p r a c t i c e o f v a r i o u s department heads and operational efficiency of the

department as a whole. This particular study gives a clear idea about the

functions, practices and the delegation of authority of Autokast Industries

Ltd, Aluva. With this, study gives an overview about the practical situations,

which a company is functioning According to Allen Kelly an organization is the

process of identifying and grouping

of work to b e pe r formed def in ing and de lega t ion of au thor i t i e s and

r es po ns ib il it y a nd e s t a b l i s h i n g t h e r e l a t i o n s h i p o f p e o p l e e f f i c

i e n t l y t o w a r d s t h e a c h i e v e m e n t o f o r g a n i z a t i o n a l goals. So it is

very much important to study the organization structure. The organization

study will help us to reveal the how things are coordinated in real time

situations. The personnel function is really all about motivation. It is

agreed that unless

indiv idua ls a re mot iva ted to pe r form e f fec t ive ly , they may

not achieve the level of performance that is desired to them. Managerial

people are always fac ing the problems motivat ing

their subordinates to release their potential more effectively

and thereby permit the desired goals of the organization and the needs of

employees to be achieved. The purpose of motivation is to create conditions which

people are willing to work with zeal, initiative, interest and enthusiasm so that the

goals of an organization are achieved effectively. Leadership is means of

d i r e c t ing . I t i s t he a b i l i t y to in f lue nc e a g roup towa rds the

achievement of goals. It is the human factor that helps a group identify where it is

going and then motivate it towards its goals. Without leadership, an organization

would be only a confusion of the people and machines. Training makes a very

important contribution to the development of the organizations Human

Resources and hence to the achievement of its aims and objectives. To achieve its

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purpose, training needs to be ef fec tive ly managed so that the right people ,

in the format right time and at the right costs.

OBJECTIVES OF THE STUDY

To get an organizational exposure.

To understand the organizational structure.

To understand the functioning of each and every department

To understand the actual functioning of the organization

To understand the basic of depart mentation

To study about the employeeemployer relationship

To make an evaluation of the performance or the organization

To make a SWOT analysis

METHODOLOGY

The study was conducted using the method of interview and observation and

also made use of the primary and secondary data

Primary dataPrimary data is collected through observation or through direct communication

with reoidentsin one form or another or through personal interviews.

The formal and informal interviews with Managers and Department heads,

employee

Direct observation

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Secondary data

Secondary data are those which have been collected by someone else and

which have already been passed through statistical process. The secondary data were

collected from.

Company records

Journals

Annual report.

Website

SCOPE OF THE STUDY

The study restricted to the functioning of, Autokast LTD. The study gives a

detailed knowledge about the different functional areas like finance, marketing,

operations and their functions

The study covers the various aspects of Autokast LTD the different

functioning of Autokast LTD .The main topic include the following

Profile of the Autokast LTD industry

Company profile

Product profile Functioning of various departments

Findings, suggestions

SWOT analysis

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INDUSTRY PROFILE

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Indias casting industry 19.2 billion by 2016

The industry is making a contribution of Rs 7,000 per ton produced to the national

exchequer by way of excise and other levies. The sector exports touched $215 million

in 2010/11The year 2011 augured well for the Indian foundry industry as it has been

acknowledged as the worlds second largest producer of castings (7.4 million tons per

annum - mtpa) based on tonnage in the year 2009.

They were placed second only to China (35 mtpa). The tempo was maintained

in the year 2010 as well. The large gap between India and China, along with the fact

that the foundry industry is not able to keep up with local demand both in terms of

quantity and quality have compelled them to go in for a detailed analysis of the sector.

The compounding factor is the visible impasse in the investments in the

foundry sector, especially in comparison to the planned investment in the userindustry, that is, auto and auto parts.

This aspect warrants detailed examination and study. Towards that direction,

the following content describes the present status of the sector and the issues that are

facing this industry. sector producing 80.3 million tons. The global production had a

roller coaster ride during the period 2008 to 2010 93.5, 80.34, 83.55 mmt in 2008,

2009 and 2010 respectively. It is expected to bounce back to 93.5 mmt by 2015/6.

Global scenario

It is estimated that in 2009 there were 46,906 foundries globally in the organised

Important findings of diagnostics study

The pos i t ion of foundr ies i s of conflicting importance among the manufacturingindustries. The castings alone account only for 0.31 per cent of the world GNP and 5

per cent of the world metal production. Thus foundries do not rule the world economy.But as main inputs into nearly all industrial products and daily life, this castingindustry is indispensable.

A major happening in the global scenario is the shift and moving of manufacturingbases from developed countries (Europe and US) to third world countries especially inAsia. Also China, the number one producer in the world, is now focusing on domesticdemand created by its recent 1.5 trillion U.S. dollar investment in the infrastructuredevelopment. This temporary diversion of Chinese output has created a vacuum in theinternational market to be taken up by upcoming foundry producers like Mexico,Turkey, Poland, Czech Republic, and Russia, apart from India,

Indian scenario

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India has 4,600 foundry units, 80 per cent of them in the SME sector. Annualproduction is 7.4 million tons, approximately valued at $8 billion. The sector employs0.5 million people directly and an additional 1.5 million people indirectly.

The industry is making a contribution of Rs 7,000 per ton produced to the national

exchequer by way of excise and other levies. The sector exports touched $215 millionin 2010/11. The manufacturing units are located in 12 identified and recognisedclusters and in 20 other clusters.

Projected market size

While there is a growth expected in the auto-sector and the casting sector alike, thedomestic market is set to surge at least three times by 2016. The auto sector aloneshould go up to $10 billion by 2016 and the casting industry is projected to be a $19.2

billion industry by 2016.

The global growth rate for castings follows approximately twice the global growthrate in GDP in absolute terms. So apart from the domestic demand, Indias exports areto go up to $3 billion with a 20 per cent growth in direct exports.

Projected demand-supply gap

While there is a clear picture of demand side, the supply side is not prepared to makepro rata investments to take up the opportunity arising out of growth.

Even assuming that the past growth rate would continue, there will be a large demand-supply gap in excess of 11 million TPA by year 2016.

Diagnostic study of foundry sectorThe data collected (from the 325 units and 100 personal interviews) are analysed witha diagnostic tree and the key findings based on them are summarised in the table

below.

Determination of level of foundry

The industry has five distinct levels of units based on the size and sophistication eachhaving its own dynamics of growth and plans. The market has also has four tiers andeach level of unit has found its own market segment.

The foundries and markets are nicely dovetailed to each other in terms of price. Butthere is a disparity in terms of quality and quantity between the market expectationand the supplies.

Project Supply / Demand Gap for Auto Casting

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responsibilities to the concerned managers for achieving the objectives as targeted inthe MPRM.

PRODUCT PROFILE

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Main Gear Case

Used for hand tiller

Material FG 260IS:210

Weight : 18 Kg

Valve Cover

Used for fluid controls


Weight : 9Kg.

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N8 Discharge Head

Used for submersible pumps

Material ASTMA48 CLASS 30 Weight : 150 Kg

Body


Material ASTMA48 CLASS 30

Weight: 150 Kg

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Valve Body

Used for fluid controls


Weight : 40 Kg

Cylinder Frame

Used for hand tiller

Material FG 260IS:210 Weight : 40 K

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Ash Vessel

Used for pneumatic transport

Material SG IRON 400 / 12

Weight : 680 Kg.

Suction Case


Material Cast iron class 30

Weight : 65 Kg

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Clavicle Brace

Fractures of clavicle bone that do not preset server neurovascular disturbance of

require surgery to achieve stabilization Use to immobilize, stabilize and align clavicle fractures in the correct position For postural correction due to habitual wrong standing / sitting condition

Helps in curing the problem of stooping shoulder and hump back Use asa post-operative brace Constructed from Hypo-allergic soft cotton stockinette covered PU foam ensure nounder arm rash Thick pad at back helps preventing irritation Applied as figure 8 shaped bandages with straps and buckles

ELBOW Crutches (Alum.)

Patient with bi-lateral limb orthosis

Cerebral palsy patient Better support and stability for elderly patients Amputees using artificial limbs Made of Aluminum (anodized) tube with telescopic height adjustment Total forearm support with PU lined etha-foam Designed as per bio-mechanical principle for proper weight distribution Plastic sleeves to reduce the friction between upper and lower tube Suction rubber tip for better grip on any surface

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Aux. Crutches Iron

Made of Iron (epoxyder power coated) tube with height adjustment Moulded axilla pad for better comfort and cushioning effect Adjustable hand grip

Suction rubber tip for better grip on any surface Temporary ambulation with plaster casts Patient with bi-lateral limb orthosis, patient with shortening of leg Uni-lateral amputees

Back Rest Adjustable

Used to keep patient sitting upright on the bed or on floor level Easy to adjust to various angles

Made of steel framed and sheet inside the frame duly power coated finish Adjustable on many desirable positions Can be used under the mattress of any size bed Framed made of round pipe and comfort cushion mat, sturdy enough tested up to

weight of 150 kgs patient Can be folded portable for carrying

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Walker Folding Adjustable (Iron)

Patient with bi-lateral limb orthosis Better support and stability for elderly patients Amputees using artificial limbs Temporary ambulation with plaster casts

Patients with shortening of leg Uni-lateral amputees Made of Iron (epoxyder power coated) tube with telescopic height adjustment Height adjusts to 1 increments from 30-35 to accommodate users 52-62 Weight capacity up to 110 kgs distribution Available in either plain or with front castor

Tennis Elbow Support (with Strap)

Commonly used for tennis/golf elbow problem Elbow wrap provides warmth and support to your elbow during sprains and strains Provides support to the injured elbow area The pressure applied by the elbow wrap reduces the pain and heals faster Minimizes the risk of future injuries Made from 100Percent knitted cotton material

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ORGANIZTIONAL

CHART

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DEPARTMENTS

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Human Resource department

Finance department

Production department

Planning department

Commercial department

Purchase department

Marketing department

Quality Control department

Research and Development department

Store department

Safety department

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HUMAN RESOURCE DEPARTMENT

Human Resource Department is concerned with the peoples dimension in theorganization. Here in Autokast , Personnel officer is the head of Human ResourceDepartment Under him there is the Personnel Office, Time Office, and anEstablishment Section.

Personnel Office

The Personnel Office deals with recruitment. Wage administration, promotionand industrial relations, disciplinary actions etc. The employees are appointed throughPecan employment exchanges. The additional employees required are taken asapprentice or on contract basis. Selected persons could get 6 months trainingefficiency in concerned on the supreme quality while selecting managerial staffs.Presently there are145 permanent employees including the managers and engineers.Out of which 131employees are presently working and the rest 14 are on deputationand on long leave. The temporary posts consist of more than 100 apprentices andcontract based workers. Contract based workers consist of former employees who

took VRS from the company and external persons who are expert in this field. The

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peoples recruited could get training and also various seminars and classes areconducted.

Functions

To recruit right kind of persons for the right job at the right time.

To arrange for training programmers.

To evaluate performance of the employees.

To the handle the grievances of the employees.

To provide welfare facilities to the employees.

Provide and maintain safety measures.

Formulating policies

Statutory Labor Welfare Facilities provided (Personnel Office) in AUTOKAST

Canteen Facility

The Company provided a canteen for its members. Here foods are provided at arate of Rs 8 per day for permanent employees. Working time of canteen is 8 hours.

Rest Rooms & Lunch Rooms

Adequate suitable rest rooms and lunch rooms (with provisions for drinkingwater) where workers can eat their meals brought by them are provided

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Facilities for Sitting

Company offers very good sitting facilities for employees in their working spot

Medical Facility

The company arranges medical checkups for all employees once in a year.Health data cards are then issued to all the employees. The medical facilities are

provided to employees as well as his/her family members.

Risk Allowance

When an employee meets with an accident, during employment for thedisablement compensation is paid as per the rules of the Workmen Compensation Act.In addition to the AUTOKAST allows an excreta payment of loss of wages i.e., 50%of the (basis DA) due to such accident.

Drinking Water Facility

An effective arrangement of drinking water for the workers in each section ordepartment is available. Also arrangements are made for cold drinking water.

Recreational Facility

Recreational club is organized in the company premises and Rs 10/- per monthare revised from each employees.

A well functioned time keeping system is used by AUTOKAST Ltd forproper time keeping. For this purpose an electronic punching system is maintained bythe Time Office.

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Statutory Labor Welfare Facilities Provided (Establishment Section)

in UEI

Wages and Salaries

To provide wages and salaries to the employees

Gratuity

The payment of gratuity act 1972 has been amended by the payment of gratuity

(amendment) act 1987. This came into force from 01-10-1987. Maximum salary takenwill be Rs 3500 for gratuity calculation. In the amendment act of 1987, the maximumamount of gratuity payable to the employees will be Rs 3.5 lakhs. It is given for goodfaithful service and efficiently rendered to whole time employees of the company.

E.S.IThe employee of the AUTOKAST covered by the ESI Act and contribution

is deducted from the employees salary since 01-11-1992. Employees whose salarydoes not exceedRs10000/- per month are covered under this act. When employees areregistered with ESI, they are entitled to get the following benefits from ESI:-

Sickness Benefit

7 days full pay or 14 days half pay sick leave can be availed by the employeesat any time. If more than 30 days leave is required, medical certificate from anauthorized medical attendant should be produced.

Disablement Benefit

An injured person is given free medical treatment and all the expenses incurredby him. The total expense in connection with the treatment will be reimbursed.

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Dependent Benefit

Legal heirs of the employee get the dependent benefit after his death. Maindependent are job and compensation.

Maternity Benefit

Women employees shall be allowed maternity leave with full pay for 90 daysafter the date of confinement. In addition, one month leave with wages is also allowedto the employee who suffers diseases arising out of delivery.

Funeral Benefit

For the funeral of employees, the funeral benefit provided is Rs 1000/-

Provident Fund

According to employees Provident Fund Act 1952, the employees of thecompany are entitled to contribute a certain percentage of salary or wages to this fund.

The rules followed in AUTOKAST are known as Employees Provident- FundRules. The fund shall deem to have been established on and from 16

th

February 1956. A worker is eligible to get Piffle he had completed continuoussix months of regular service or 120 days during the period of 12 months. Under thisscheme, repayable loans are available to employees in liberal terms. As the scheme isrecognized, employees get benefit in income tax also.

Bonus

Bonus is paid in accordance with the guidelines issued by the government fromtime to time. An employee whose salary is less than Rs 2500/- per month is eligible toget bonus. 8.33% of the total salary is the minimum bonus to be paid.

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House Rent Allowance

House rent allowances are allowed at the following rates.

A)Salary less than Rs 2500/- is eligible to get HRA = RS 145/-

B)Salary less than Rs 3000/- is eligible to get HRA = RS 165/-

C) Salary above Rs 3000/- is eligible to get HRA = RS 185/-Uniform

Allowance

Uniform allowance

Provided to workers is Rs 525/-, once in 2 years.

Footwear Allowance

Footwear allowance is provided to the workers in the spot welding shop, paintshop, mechanical maintenance shop etc. is Rs 425/- in every 2 years

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FINANCE DEPARTMENT

Finance refers to money or funds available to a firm. A business needs at everystep to start a business, to operate it and to expand or modernize its operations.Finance is required to bring a business into existence, to keep it alive and to see itgrowing. The management of finance is essential for the success of the business.Finance manager is the head of the finance department. He looks after the budget,finance posting and audits of accounts. The senior officer accounts takes charge tolook into the day today affairs of the financial of the company. The senior officerestablishment deals with calculating employees wages provide provident fund, ESI

etc. The cost section prepares cost sheet and evaluate job card. There is an internalaudit section that deals with verification of accounts.

The AUTOKAST L td ha s a n in i t i a l c a p i t a l a m oun t to 4c rore s . I t s products are sold to its main customer KSEB. It also has other domesticcustomers.

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TAX:

AUTOKAST Ltd has to pay the following taxes:-

Income tax.

Sales tax.

Excise duty.

Educational cess.

The sales tax charged per meter in Kerala is at the rate of 12.5%, whereas, if

sold to other states outside Kerala, the rate is only 4% per meter (i.e., Central Salestax). Educational cess is 2% on the excise duty. Presently, the excise duty is 16% onone meter and the educational cess 2% of the 16%.

Job Card:

It is used to calculate the quality of products individual production time. Theimportant registers maintained by the finance are given below:

Purpose Journal.

Sales Journal.

Payroll.

Sections of Finance Departments:

The various sections under finance department are:

Book and Budget.

Sales

Priced Stores Ledger.

Costing.

Establishment.

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Other Important Functions

Payment to establishment

Wages

Salary

Payment to suppliers

Indigenous Purchase

Important Purchase (Purchase, Bills)

Terms of payment for purchase are

Letter of credit (L/C)

Advance (DD)

Cash and delivery (COD)

Site Draft (SD) (If suppliers are not familiar)

Service Bills

This section maintain bills for payment of

Factory service

Maintance (Civil and mechanical)

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Internal Audit

The main function of internal audit are

Fault recognition

Suggestion for improvement

Assisting working level people

Internal audit conducts site audit, once in a year.

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PRODUCTION DEPARTMENT

Structure of Production Department

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Fully equipped laboratories to conduct chemical, mechanical and metallurgicaltests anda fully Computerised vacuum emission spectrometer with 60 channelsand a print out system. BAIRD, USA make Spectrometer, having different AlloySets calibrated to take care of inhouse requirements and also extending service toother industrial units.

The alloy sets include SG Iron, Grey Iron, Low Alloy Steel, Stainless Steel, NIHARD,Tool Steel, etc.

Sand Testing Equipment from BCIRA/George Fisher & Co., USAMetallographic laboratory with Projection Reading Microscope.Physical testing laboratory with 60 Ton Universal Testing Machine,

The Quality Assurance is inbuilt in the system and routine stage inspection has beenincorporated to ensure raw material control, process control and control of finished

products.

Objectives

To achieve monthly production target as per customer requirement

To improve quality by reducing process rejection below 3%

Increase productivity by effective utilization of resources

Maintain production and discipline in the section

Coordination of workers and shop floor activities

Share information

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The objective of this department is to achieve monthly target as per productionprogram issued from marketing department. SMW has the overall responsibility ofthis department. He is responsible to the following:

Ensuring targeted production.

Authorization of annual/monthly production plan based on budget. The

responsibilities of SEW are:

Preparation of annual/monthly production plan.

Planning, scheduling and dispatching of job cards.

Identifying the gap in the implementation process.

Responsibilities of other functionaries involved are given against individualactivities.

The scope of this department is:

Planning in respect of components relating to the production of products.

Testing the products

Finishing and packing theproducts

Scheduling of operations in respect of manufacture of components.

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Overall responsibility for marketing policy rests with GM. Coordination commercialfunction including marketing. Commercial Department include sales department also.

Procedures

The company markets its products in 3 ways. Firstly, responding to tenders andquotations as per customer requirement and specification. SMM shall consolidate therequirements of the product, taking into consideration the customer requirements,stated or unstated, statutory and regulatory requirements or any other additionalrequirements determined by the company, if any, including requirement. He shall

prepare note incorporation the above requirements and submit the same to the ApexManagement for review and approval. Secondly, through approved dealers ordistributors. Order for AUTOKAST standard products are normally handled throughdealers. Changes occur in the case of specifications additional features or standard

products.

Thirdly, its through counter sales. When a customer approaches directly topurchase the product of the company, he has to fill up the order format and if hisrequirement is in line with the company specification, company registers the order andsales is affected.

The function of this department also includes handling, storage, packaging,preservation and delivery of finished products.

L & T Mumbai

Crompton Greaves Mumbai

Jyothi Electricals Calcutta

Adwani Orlicon Mumbai

Materials and Planning control (MPC)

This department plays a strategic role in materials management. MPCis the prime agency responsible for the availability of any material,required for production and hence constantly keep track of material status. It is thedepartment which receives the material is made available to the manufacturingsection. As this department has the major responsibility of the stock in store andfor allocation and coordination with the purchase department procuring right material.

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PURCHASE DEPARTMENT

Structure of Purchase Department

This department deals with the purchase of raw materials from various sources.In Elite, raw materials are purchased through inviting tenders from suppliers 100% ofraw materials are purchased from outside suppliers. Production department givesorder to the purchase department to purchase raw materials. The main raw materials

are aluminum sheets, aluminum road, steel sheet, steel parts, copper sheets and copperparts.

Purchase Policy:

AUTOKAST Ltd has a purchase policy to purchase raw materials in rightquantity and quality aright time, at right place from a right source. The source ofmaterials is selected by checking the samples collected from different suppliers.Acceptance of sample can be done as per the recommendations from the qualityassurance department. If the samples are qualified, the criteria the suppliers can beincluded in the list of qualified suppliers. Tenders should be sent to qualified suppliersonly. They only have the ability to provide bulk of raw materials of the company. Rawmaterials required for the company as follows,

Raw materials.

Components.

Consumables.

Tools.

Stationeries.

Capital goods.

Sub assemblies.

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Services.

Spare parts.

The responsibility of purchasing material rests on the SO purchase. He isresponsible for procurement, components and raw materials.

Purchase procedures:

All the purchase shall be made by purchase department.

Bill of materials shall be given by the production department.

Material intends in forward to purchase department against each projects.

Other items except capital goods required by various departments are intimatedto store who prepares purchase intend and forward the same to giving full

specification, samples of necessary requirement of capital goods is identified invarious departments and set to purchase department often getting approval from thecompetent authority. Some of the major suppliers are:

Indian Technological Products Private Limited.

Delhi Electronic Products Limited, Chennai.

Sermet electronics, Pune.

NSP, Bangalore.

Konark Industries, Bangalore.

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MARKETING DEPARTMENT

Structure of Marketing Department

The scope of this department is to cover all the products of the company solddirectly to customers against order or through approved dealers/distributors appointed

by the company. Overall responsibility for marketing policies rests with GM,coordination of commercial function including marketing. This function rests withSMM.

Duties of SO-marketing:Now the AUTOKAST produce motor starter and meters. The responsibility

of marketing of motor starters and other products rest with SO-marketing. Theresponsibility of the SO-marketing is to maintain and promote dealers, preparation and

providing production programmer to workers, arranging dispatches as per schedule,payment follow up, customer coordination scrap sales and other assignments given bySOM.

Duties of SO-sales

The responsibility of marketing of meters and contractors rests with the sectionofficer-sales. The responsibility of the section officer-sales is to assist SMM inachievement of departmental objectives and record keeping, tendering and otherassignments given by him.

The other duties of section officer-sales are as follows:

Preparation and providing production program to works.

Arranging dispatches a per schedule.

Payments follow up.

Customer coordination.

Compliance of excise formalities.

Stock maintenance.

Arrange packing.

Invoicing.

Payment collection and filing excise return in respect of meters and contractors.

Payments follow up in respect of starters, scrap and other products.

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QUALITY CONTROL DEPARTMENT

Structure of quality control department

This department is concerned with checking the quality of products made in thecompany. At each and every stage of production, the quality of the product is checked.Before it becomes the final product, it is cross checked.

Quality Policy:

AUTOKAST and its employees are committed to develop, manufacture andmarket house service energy meters and motor control gears, ensuring customersatisfaction of its products and services through continual improvement of theeffectiveness of its OMS achieved by setting and reviewing objectives.

Quality Objectives:

Top management of AUTOKAST establishes implements and communicatesoperational measureable quality objectives at all relevant functional levels. The

achievement of the same is measured monthly through MPRM.

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Quality Management Principles:

AUTOKAST has framed its quality policy and manages its quality policymanage its quality system following the eight management principles of ISO:9000:2000, listed below.

1) Customer Focus:

AUTOKAST meets customer requirements and strives continuously to meetcustomer expectation by determining and reviewing customer requirements andmeasuring customer satisfaction.

2) Leadership:

Top management of AUTOKAST establishes and provides leadership and unity ofpurpose and direction through management review meetings and provision ofresources.

3) Involvement of People:

AUTOKAST believes that involvement of all employees is essential for the betterfunctioning of the organization. This is achieved by planned training as given in theguidelines for training.

4) Process Approach:

The departmental guidelines of major functions follow a process approach and includePDCA cycle, which provides proper direction for achieving results when resources aremanaged as a process. It also helps to provide direction in taking planned correctiveactions.

5) Continual Improvement:

Continual improvement of QMS is achieved through measurement of qualityobjectives achieved, measurement of customer satisfaction.

6) Factual Approach in Decision Making:

AUTOKAST takes effective decisions based on results of analysis of data. This isachieved through the interactions in the management meeting on the performance ofindividual departments.

7) Mutually Beneficial Supplier Relationship:

AUTOKAST tries to maintain beneficial and a mutual relationship with supplier.

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Quality Assurance

The SE Quality Assurance is in charge of quality checking of the raw materialsamples. The quality assurance department also checks quality of incoming raw

materials and theproducts in process. Inspections of finished goods are done by AEinspection. All meter products in the company are handed over to sales department.The sales returned meters are checked and corrected heres a commitment towardTotal Quality Management in line with CII/EFQM guidelines, annual improvementaction plans are being implemented involving techniques like

Benchmarking.

Business Process Re-Engineering.

Six sigma.

Kaizen

These are resulting in cycle time reduction for further improvements in delivery

and technological process up-gradation, leading to improvement in quality profit toproducts and enhanced customer focus on a continuous basis.

To fulfill its role as a corporate citizen towards protection and conservation ofthe environment and ensuring that its products and systems also meet suchrequirements, AUTOKAST has finalized a Corporate Environment managementPolicy for ISO 14002 Certification.

For ISO 9001 certification, the International Audit is done once in six month bythe AUTOKAST personnel independent of their functions and External audit is done

by Bureau Verities Quality International

Management Responsibilities Regarding Quality

Management must define and document its policy objectives andcommitment to quality.

Ensure that it is understood and implement at all levels.

Define responsibilities and authorities.

Identify verification and assign to competent personnel with adequate

resources. Appoint management representatives.

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Quality System Standards

ISO - International Organization for Standardizations

Series of Standards. ISO 9000:

ISO 90001:2000.

ISO 90001:

Covers management responsibility, contact review, control of design, purchase,testing storage, etc.

All units of AUTOKAST are ISO: 9001 certified. Certification AgencyBVQ1 (by Bureau VERITAS Quality International).

International audit once in 6 months

ISO: 9000-2000 VersionBrief Overview:

Revised standard is compatible with principles of ISO 14000 andTQM. It centers on resultsachieved through P-D-C-A (Plan, Do, Check, Act) and processed approach.

Focus on business needs, continue improvement through measurable performance parametersleading to customer satisfaction.

Mandatory documentation requirements simplified required in 6 of the following areas:

1) Documentation control.2) Quality records.3) Internal audit.4) Control of non-conforming products.5) Corrective action.6) Preventive action.

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ISO 14000 (environment management system)1) Converts Statutory, Regulatory Acts (pollution, chemical treatment, discharge etc.)2) Energy consideration, resource utilization.

Quality issues faced by AUTOKAST :

1. Performance/Function.

Input to output performance.2. Dimensional.

Mounting.

Fitting.

Connections.

Layout. Foundation etc.

3. Completeness.

Incomplete suppliers.

Incomplete finish.

Incomplete spares.

Incomplete tools.

Incomplete documents (drawings, test reports/certificate).

Inadequacy (technical information) Not clear/legible

4. Quality documentation.

Inadequacy (technical information)

Not clear/legible.

5. Delivery.

Not in sequence as required by site/customer.

6. Others.

Finish.

Alignment.

Appearances.

Ease of handling/maintains.

Ergonomics7. Response time, behavior and attitude of AUTOKAST personnel towards

customers.

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TQM Model: The Ten Essential Steps:

Management readiness.

CustomerSupplier partnership.

Environment scanning.

Existing system.

Strategic planning

TQM training.

Disciplined system implementation.

Process enhancement.

Performance evaluation.

Continuous improvement.

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RESEARCH AND DEVELOPMENT

DEPARTMENT

Structure of Research and Development Department

Purpose of R&D Department

The scope of this department is the design and design modification of thefollowing products manufacture in the company:

Responsibilities and authorities of R&D department:

The apex management team holds the responsibility for the final approval of

the technical specification of the product, which is to be taken up for design anddevelopment.

SMW holds responsibility to convene the core committee for reviewing thedesign at various stages. He is also authorized to approve the various design outputssuch as bill of materials, drawings, flow charts of the project, approving brand etc.

SMR & D holds the responsibility of preparing the product flow chart, bill of

materials, design drawings, wiring diagrams, etc.

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SMW is the overall charge of stores. Store assistants have the individualresponsibility relating to all operations of the respective sub-stores and to keep therecords properly. The duty of assistants is to count the quantity of goods. There are

also trainees.

Functions of Store Department

Receiving material/accounting.

Issue of materials.

Items of repair/rectification/calibration/refilling sub assembly/receipt of itemfor outside issue.

Inventory management.

Procedure:

For making the function of store department more effective, the store is dividedinto different sub-stores, namely:

General store.

Raw material store.

Electronic store.

Starter store.

Tool store.

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Safety precautions at AUTOKAST :

For making the functions of the safety department, AUTOKAST takes the followingsteps:

Safety committee.

Safety steward committee.

Safety training for executive supervisor and artisans.

Accidents investigation reporting system.

Issue of safety equipment.

Objectives of the Safety Committee:

Objectives of the safety committee are as follows:

Control of accidental hazards.

Promote safety consciousness among employees.

Communicate to the top management regarding safety aspects. Safety steward

will entrusted with the responsibilities of continuous watchfulness. Persuasion andcorrection of fellow employees to enable safe methods of work being is adopted. Inaddition to the above, award of rolling shield for safety and cleanliness was introducedduring the year 1983 in this unit. The rolling shield will be awarded to sections thatmaintain goods, safety conditions of working and maintain cleanline

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SWOT ANALYSISSWOT Analysis of a company reflects the effectiveness of the functions of the

company in each and every department. Brainstorming technique was adopted to findthe SWOT. It is a group creativity technique designed to generate a large number of

ideas from a group of employees. Suggestions are evaluated and the analysis is made.

STRENGTH:

Quality of Products: The products of AUTOKAST possess high quality. It is anISO 9001:2000 certified company. The company offers 15 years warranty for its

products. Before getting approval. The company products pass through different typesof tests.

Customer Focus: The Apex Management Team of AUTOKAST shall determine,understand and try to satisfy the needs and expectations of customer with the aim ofenhancing customer satisfaction. The Marketing Department has the primaryresponsibility and Quality control has the secondary responsibility and all otherdepartments have the responsibility for commitments for ensuring customersatisfaction.

Involvement of workers is high: AUTOKAST believes that involvement of allemployees is essential for the better functioning of the organization. This is achieved

by planned training as given in the guidelines for training. Top management ofAUTOKAST establishes and provides leadership and unity of purpose and directionthrough Management Review Meetings, Monthly Performance Review Meetings and

provision of resources.

Process Approach:The departmental guidelines of major functions follow a processapproach and include (PDCA- Plan, Do, Check, Act) cycle, which provides proper

direction in taking planned corrective actions.

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Continual Improvement:Continual Improvement of Quality Management Systemsis achieved through measurement of quality objectives achieved, measurement ofcustomer satisfaction, resolution of departmental non-conformances, implementationof corrective and preventive actions and internal audits. These are reviewed in themanagement review meetings.

Mutually beneficial supplier relationship: AUTOKAST tries to maintainbeneficial relationship with suppliers and thereby enhance ability of both to createvalue. The organization continually measures the performance of supplier sand givesthem feedback and possible help to improve performance. It also gives them chance toassess the organization on the above chance.

Skillful workforce: AUTOKAST shall determine the competency of the personnelperforming the work affecting the Quality Management Systems on the basis ofassessment done by immediate superior. The identified needs shall be consolidated for

preparation of the training plan for satisfying the training needs. A yearly Competence

Improvement Plan covering training, exposure visits, self-learning etc. shall beprepared. As a result the workforce has expertise in the respective areas.

Good Industrial Relations:The relation with the top management and workers arecordial. Not a single working day was missed due to labor unrest in the past 30 years.

WEAKNESS:

High employee turnover: With the introduction of VRS, the person shaving

experience left the company. This resulted in the reduction of experience hand in thecompany.

Inadequate Performance Appraisal: The prevailing system of performanceappraisal is inadequate in the present scenario.

Lack of Motivational Techniques: The Company provides mandatory welfaremeasures to its employees. But motivational technique like promotion takes too muchtime.

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Time consuming policy decisions: AUTOKAST is a government company. So thedecisions related to policy takes comparatively longer period.

Poor financial stability:For years, the company depended on only one customer andthe customer gained high bargaining power. The government policies also affected the

performance of the company. This lead to financial instability.

Inadequate R&D: Due to poor financial stability, company could not set aside muchfund for R&D purposes. This prevented the company from introducing new products.Because of this, the competitors which were established after AUTOKAST overtookthe company in many areas.

OPPORTUNITIES:

An aging population will require more orthopedic implants; by 2015P, the

U.S. population over 65 years old will reach 48 million, an

increase of over 18% from 2010

A rise in osteoporosis-related fractures and musculoskeletal diagnoses are

driving increased orthopedic procedure volume, particularly

for individuals age 65 or older

Medical expenditures related to obesity have doubled over the last decade and

currently represent an annual spend of approximately

$150 billion in the U.S.

Active lifestyle trends have resulted in increased implant volumes for

younger demographics

Technology advances are making devices last longer, fueling younger patient

acceptance of life-long implants

Threats:

Competitions: the company is facing tough competitions from the private and publicsector undertakings

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Emerging of modern technology: Due to globalization modern technology wereavailable in the market. The competitor make s of that.

FINDINGS & SUGGESTION

FINDINGS:

The major findings are:

Good reputation of the company: Quality products and the government brandname is a major advantage for the company. It as a wide acceptance among thecustomers since it possesses a good customer handling and great quality products.

Well-disciplined staff and employee: The work force is the strength of the company.All the workers work whole heartedly for the progress of the company even in badtimes. There was no labor conflict in the past 30 years.

Hard working skilled labor force: The labor force is very skilled. The companyrecruit fresh technicians and give extensive training to them.

Good management employee relationship: The grievance re addressable system isvery effective in the company. The company believes in the policy Prevention is

better than cure, and it results in a good employee employer relationship.

Effective attendance system: The company follows a punch card system. By which,

the company can find out the total hours an employee spend in the working place.

Harmonious Industrial Relations: The HR department makes sure that everyreasonable need of the employee is met. The company considers employees as theirgreatest wealth.

Maximum capacity utilization: The company plan their personnel needs veryeffectively and recruits the correct number of persons. This ensures the maximumutilization of resources.

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Regular feedback system: The feedbacks from the customersare collected in timewith a view to improve the operational efficiency. For this the customers are contacted

personally after a certain period of delivery. The company provides feedback forms to

the customers.

Good HR planning: HR planning is excellent. The company calculates the personnelrequirement well in advance and act accordingly. Most of the time their planning isaccurate. This ensures the effective utilization of resources.

Solvency: Solvency of the company is good. It maintains a favorable solvency ratio.

SUGGESTIONS:

The major suggestions are:

Employee Turnover should be minimized:In the long run, this may seriously affectthe company. So the real reasons behind this should be found out and correctivemeasures should be taken

Performance appraisal system should be improved: At present the companysperformance appraisal system is not up to the mark. The companys techniques arelittle outdated. A 360 degree appraisal system can be introduced.

Improve the motivational techniques:The motivational techniques need a revisionon the grounds of increased employee turnover. The company should make theemployees more loyal to the company. For this timely promotion, incentives and plans

like ESOP (Employee Stock Option Program) may be introduced.

More marketing efforts should be made: The new technologies in the informationtechnology can be utilized for that. The website of the company should be convertedinto an E-commerce portal. All the companysproducts should be listed with picturesand all the specifications and facilities for online trade should be made.

Infrastructure should be developed for improving the output.

Technology transfer should be established with some reputed organization.

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Company should appoint marketing executives.

CONCLUSION

In our project Determination of Service Indicators for Service Departments,

We have finalized the service indicators for all the service departments of Autokast

Industries limited. Today is the buyers market. In the world of globalization, by

ensuring merely the customer satisfaction, the organization can survive but it cannot

flourish and compete with the competitors. For that, it is important to move from

customer satisfaction to customer delight and ultimately to customer obsession, only

then the organization can rule the market. There are both external and internalcustomers whose attitudes, opinions and behavior affect the organizationsday-to-day

success:

External customers- external customers exist outside the organization. This type that

comes to mind are end-use customers, the ones who use or consume the product or

services of the organization for their own purposes or production.

Internal customers- employees of the organization for whom the service departments

provide product, services or servicing.

Stakeholders- are those whose interests are linked with the organisation. It includes

employees, stockholders, community leaders.

If the internal customers are satisfied, then only it is possible to attract and retain

the external customers. Service indicators are basically framed to ensure the

satisfaction of internal customers and developing the culture where the organisation

can ensure the best many features and functions of the organization.

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Quality of services provided by the service departments to the employees.

BIBLIOGRAPHY

Books & Journals

Harte John (1997) Management Crisis & Business Revolution,Transaction

Publishers.

Pandey.I.M (2006) Financial Management, New Delhi, VikasPublishing

House Pvt Ltd.

Kotler Philip, Lane Kevin, Jha Abraham and Mithileswar(2007)Marketing

Management- South Asian Perspective, New Delhi, PearsonPrentice Hall.

Sekaran and Uma(2007)Research Methods for Business- A SkillBuilding

Approach, New Delhi, Wiley India.5.Company Journals.

ISO 9001:2000 Quality System Files

Websites

www.autokast.com

www quote com

auto kast

Documents