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CHAPTER 1

1. INTRODUCTION

1.1 TRAINING

1.1.1 DEFINITION:

Activities designed to facilitate the learning and development of new and

existing skills, and to improve the performance of specific tasks or roles. Training

may involve structured programs or more informal and interactive activitiessuch as

group discussion or role playingwhich promote experiential learning. A wide variety

of activities, including classroom-based courses, on-the-job training, and business or

simulation games, are used for training. Audio-visual and multimedia aids such as

videos and CD-ROMs may also be employed. Training may be provided by an

internal training officer or department, or by external training organizations. The

effectiveness of training can be maximized by conducting a training needs analysis

before hand and following up with evaluation of training. Training should result in

individual learning and enhanced organizational performance.

1.1.2 TYPES:

I.On-the-job Training and Lectures

The two most frequently used kinds of training are on-the-job training and lectures,

although little research exists as to the effectiveness of either. It is usually impossible

to teach someone everything she needs to know at a location away from the

workplace. Thus on-the-job training often supplements other kinds of training, e.g.,

classroom or off-site training; but on-the-job training is frequently the only form of

training. It is usually informal, which means, unfortunately, that the trainer does not

concentrate on the training as much as she should, and the trainer may not have a

well-articulated picture of what the novice needs to learn.

On-the-job training is not successful when used to avoid developing a training

program, though it can be an effective part of a well-coordinated training program.

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Lectures are used because of their low cost and their capacity to reach many people.

Lectures, which use one-way communication as opposed to interactive learning

techniques, are much criticized as a training device.

II. Programmed Instruction (PI)

These devices systematically present information to the learner and elicit a

response; they use reinforcement principles to promote appropriate responses.

When PI was originally developed in the 1950s, it was thought to be useful only for

basic subjects. Today the method is used for skills as diverse as air traffic control,

blueprint reading, and the analysis of tax returns.

III. Computer-Assisted Instruction (CAI)

With CAI, students can learn at their own pace, as with PI. Because the student

interacts with the computer, it is believed by many to be a more dynamic learning

device. Educational alternatives can be quickly selected to suit the student's

capabilities, and performance can be monitored continuously. As instruction

proceeds, data are gathered for monitoring and improving performance.

IV. Audiovisual Techniques

Both television and film extend the range of skills that can be taught and the way

information may be presented. Many systems have electronic blackboards and slide

projection equipment. The use of techniques that combine audiovisual systems such

as closed circuit television and telephones has spawned a new term for this type of

training,teletraining. The feature on “Sesame Street " illustrates the design and

evaluation of one of television's favorite children's program as a training device.

V. Simulations

Trainingsimulations replicate the essential characteristics of the real world that are

necessary to produce both learning and the transfer of new knowledge and skills to

application settings. Both machine and other forms of simulators exist. Machine

simulators often have substantial degrees of physical fidelity; that is, they represent

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the real world's operational equipment. The main purpose of simulation, however, is

to produce psychological fidelity, that is, to reproduce in the training those processes

that will be required on the job. We simulate for a number of reasons, including to

control the training environment, for safety, to introduce feedback and other learning

principles, and to reduce cost.

VI. Business games

They are the direct progeny of war games that have been used to train officers in

combat techniques for hundreds of years. Almost all early business games were

designed to teach basic business skills, but more recent games also include

interpersonal skills. Monopoly might be considered the quintessential business game

for young capitalists. It is probably the first place youngsters learned the words

mortgage, taxes, and go to jail.

1.1.3 TRAINING METHODS:

All training methods can be grouped into two categories:-

a] Training methods for operatives and

b] Training methods for managers

a] Training Methods for Operatives:

Under these methods the new employee is assigned to a specific job at a machine or

workshop or laboratory. He is instructed by an experienced employee or by a special

supervisor who explains to him the method of handling tools, operating the machines

etc.

Vestibule Training: - This method involves the creation of a separate training

centre within the plant itself for the purpose of providing training to the new

employees. An experienced instructor is put in-charge of this training. Machines and

tools are also managed in the training centre, so as to create working conditions

similar to those in the workshop.

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Advantage: - No interference with regular production.

Disadvantage: - Costly, adds nothing to productions during training period.

Apprenticeship Training:-This method of training is meant to give the trainee

sufficient knowledge and skill in those trades and crafts in which a long period of

training is required for gaining complete proficiency.

Generally, the trainees work as apprentices under the direct supervision of experts

for long periods of say, two to seven years. This programme consists of providing

actual work experience in the actual job as well as imparting theoretical knowledge

through class room lectures which may be arranged either in the plant or in the

institution attached to the concern. This method of training enables the trainees to

become all-round craftsmen. But this method is very expensive and also there is no

guarantee that a trained worker will continue to work in the same concern after the

training is completed.

Internship Training :- This method of training is generally provided to the skilled

and technical personnel. The object of this type of training is to bring about a balance

between theoretical and practical knowledge, under this method, students from a

technical institution possessing only theoretical knowledge are sent to some

business enterprise to gain practical work experience. Simultaneously, the

employees of business enterprises are sent to technical institutions to gain the latest

theoretical knowledge on a subject.

Ex. B.E. (Prod.) - 6 months in plant training

B.E. (Mech.)- 2 days in a week during final year

b] Training Methods for Managers:-

Executive talent is the most important asset which a company can posses. Although,

it does not appear on the company's balance sheet, but it produces more important

effects on the company's progress, its profit and the price of its stock than any other

asset in its possession.

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The following are the various training methods for managers.

1] Observation Assignment :-

Under this method, the newly recruited executive called "understudy" is made an

assistant to the current job holder. He learns by experience, observation and

imitation. If decisions are discussed with him, he is informed on the policies and

theories involved.

2] Position Rotation :-

Under this method, the trainee executive is rotated among different managerial jobs.

This not only broaden and enriches his experience as a manager but also enables

him to understand inter departmental relations and the need for co-ordination and

co-operation among various departments.

3] Serving on Committees :-

Another important method of training on an executive is to make him serve on a

committee. While serving on a committee, the executive comes to learn not only the

various organizational problems, views of senior and experienced members, but also

learns how a manger should adjust himself to the overall needs of the enterprise.

4] Assignment of special Projects :-

Sometimes, as a method of training some special project is assigned to a trainee

executive. for example, he may be ask to develop a system of cost allocation in the

production of certain goods for which an order has been received by the company.

While working on such project, the trainee not only acquires knowledge about them,

but also learns how to work with and relate to other people holding different views.

5] Conference and Seminars :-

Often an executive is deputed to attend a conference, seminar or workshop to

receive a quick orientation in various areas of Management with which he might be

unfamiliar. One advantage of this type of training is that all the participants coming

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from different organizations get an opportunity to pool their ideas and experience in

attempting to solve mutual problems. The attitude is one of joint exploration. This

encourages cross fertilization of ideas.

6] Case Study :-

A case is a written account seeking to describe an actual situation. A good case is

the vehicle by which a chunk of realty is brought into the class room to be discussed

over by the class and the instructor. Discussion on a case requires a capable

instructor, who can evoke and guide intelligent discussion analysis, so that

meaningful learning experiences occur. There is no "right" answer or simple

explanation in the comprehensive case. The advantages of this method are more

depth of thinking, more perception in a situation, greater respect for and

consideration for the opinion of others.

7] Incident Method :-

This method was developed at M.I.T. by Paul and Pigors, as an outgrowth of

dissatisfaction felt with the case method. In the usual case method the entire

problem is presented to the students, whereas in the incident method only a brief

incident is presented to provoke discussion in the class. The group then puts

questions to the instructor to draw out of him the salient facts and additional

information, needed to arrive at a reasonable solution or resolution of the case. This

method draws the participants into discussion with greater emotional involvement. A

unique advantage of this method over the case method is the procedure of obtaining

information by questions, one that often must take place in actual business

situations.

8] Role Playing :-

In this method, the instructor assigns parts taken from case materials to group

members. The situation is usually one involving conflict between people. The role

players attempt to act the parts as they would behave in a real life situation, working

without a script or memorized lines and improvising as they play the parts. The

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development of empathy and sensitivity is one of the primary objectives of role

playing.

9] Laboratory Training (or Sensitivity Training) (T group Training):-

This type of training is designed to increase the managers understanding of himself

and of his own impact on others. The training takes the form of a group discussion,

and through a leader trained in the technique is present, the group may decide on

the subject of discussion or suggest changes in procedure. In the course of

discussion, conflict, hostility, stress and frustration may be purposely generated for

they later on become motivations for growth as well as food for learning. The

laboratory training aims at achieving behavioural, effectiveness in transactions with

ones environment.

1.1.4 RECENT TRENDS IN TRAINING:

Traditional view of lectures being able to deliver learning to a large group of

audience in a small time and at a tighter expense is being challenged, with

participants preferring a method that can value their experiences and feedback more

than what a traditional lecture system allows them to.

Retreatsare facing the challenges of cost and returns – with an increasingly diverse

and dynamic workforce, and with organizations running on tight schedules and

tighter budgets, it is becoming increasingly difficult to bring a sufficient number of

participants together in a retreat setting, and to justify the high cost associated with

the method.

While electronic and web based learning sessions are becoming more popular due

to their relative ease of setting up, and the advances in technology bringing virtual

closer to real every day, age‐old trends of distance education and mentoring are

making a strong return in Canada, especially in the recessionary period.

Distance education started in Canada as a concept during as early as 1860’s, and

it focussed almost exclusively on participants from off‐urban locations. However, with

time and advent of technology, distance education has evolved to various forms of

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online courses and sessions, allowing participants the freedom of time, location, and

learning material.

The role of mentoring and coachingis probably most important in workforce today

than ever. With an aging population, organizations are looking at their replacement

charts and succession plans more closely than ever, and this type of learning

provides an ideal ground for organizations to retain the skills that senior employees

could potentially take along with them upon retirement. Not only does this learning

style gives senior employees an opportunity to pass their wisdom to their potential

successor in the organization, but also allows the protégés to begin contributing to

the decision making process much earlier in their careers as they get a chance to

interact with the employees who have already been recognized in the workplace as

leaders and experts in their respective fields of work.

1.2 ADVANTAGES OF TRAINING:

1.2.1 CASE STUDY:

Traineeship Eases Finance Sector Training Load

A two-year financial services traineeship, backed by employer incentives, is

easing the path to better customer service and legislative compliance for a

Queensland company.

The Queensland Teachers Credit Union (QTCU) has around 40 financial

services trainees among its 250 staff in 12 branches from Cairns to Southport. At the

successful completion of their traineeship, they will all receive Certificate III in

Financial Services.

QTCU training officer Ross Acutt says its a move that he'd recommend to any

financial services sector employer.

"From March, new Commonwealth legislation requires some employees in

our sector to meet a certain standard of competence and the delivery of the

Certificate III in Financial Services through traineeships is making that process of

compliance easier for us," he says.

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"As well, we will have better trained employees with enhanced skills who will

provide better services to our members.

"QTCU is very focused on maintaining a strong branch infrastructure and our

trainees will now have a nationally-recognised qualification that helps us provide high

service standards consistently across all of our branches in Queensland."

Mr Acutt says providing training opportunities and a career path for

employees helps make QTCU an employer of choice in a competitive recruitment

market.

"Potential new and existing staff see this training as a great personal

development benefit, which helps us retain staff and attract a high standard of new

recruits."

Mr Acutt says the whole process of signing up, registering the trainees and

accessing suitable training was made simple by Queensland Apprenticeship

Services (QAS).

QAS is a business unit of Commerce Queensland and provides a free service

to employers and employees across the State. The service includes advice on the

most suitable training available, assistance and advice on recruitment options,

obligations of parties, assistance with completing the paperwork and payment of

Commonwealth Government incentives.

QAS has offices throughout Queensland. QAS senior New Apprenticeships

consultant Fiona Woodhouse, who specialises in the financial services sector, says

the working partnership between QTCU and QAS has smoothed the path for QTCU

and its employees and given them a clear understanding of the system and their

obligations.

She says employers could be eligible for a range of Australian, state and

territory Government employer financial incentives for employing trainees.

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1.3 ISSUES IN TRAINING PROGRAMME

Training versus Awareness Creation

The evaluations reviewed indicate a frequent confusion between the concepts

of training and awareness creation in the design of training programmes. The

evaluation report of a project in demographic training in Honduras stressed this

difference and explained its causes. This explanation, which referred specifically to

demography, can be generalised to other substantive fields. According to this report,

awareness creation aims at promoting understanding and acceptance of the

significance of various population problems. It brings facts and issues to the attention

of large audiences or specific groups, such as decision-makers and opinion leaders.

On the other hand, training aims at developing skills and in-depth knowledge on

population topics in a structured and systematic way. While awareness creation can

include among its targets a diverse audience with various profiles, training is aimed

at specific categories that meet a number of conditions. In addition, training takes

place during a limited and pre-determined time period, follows rigorous

methodological and pedagogical rules and aims at achieving a well-defined amount

of competence.

Failure to recognise this difference had resulted in projects that were

overburdened with an assortment of objectives aiming at both technical training and

awareness-raising. Being two disparate categories, as explained above, these can

generate opposing dynamics and the steps taken to achieve one can lead away from

the other. The confusion between training and awareness creation in formulating

project objectives weakens the focus of project strategy and finally diminishes project

effectiveness.

The unclear distinction between training and awareness creation in project

design has a diminishing effect on project effectiveness. This is because training and

awareness creation have different objectives and their achievement requires

different approaches. The lack of definition, and at the same time, reconciliation of

these approaches can undermine the coherence of the project strategy.

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Needs Assessment

An important factor in designing training programmes is the magnitude of the

demand for the skills to be developed by the training. It was often observed that the

objectives of training activities, in terms of people to be trained, were not determined

on the basis of the requirements for specific skills or projections of jobs to be

created, especially in the public sector. This can have a deleterious effect on the

sustainability of training imparted because, if trainees are not given ample

opportunity to practice their skills, eventually such skills will be lost. An assessment

of the capacity of national institutions to absorb trained personnel is therefore critical

to ensure the effectiveness of training.

Persistent and rapid turnover of staff is a recurrent problem in developing

countries. Population programmes often suffer because of the departure of qualified

personnel for better job opportunities elsewhere. In some regions, such as Latin

America, the private sector is a significant pole of attraction, in part because of the

large salary differentials. To address this problem, several evaluations stressed the

necessity of a national or sectoral personnel training plan based on sound needs

assessment. This plan would co-ordinate complementary in-country and external

training activities to produce the needed pool of skilled labour in a specific time

period. In addition, it could offer alternative solutions to the turnover problem,

through, for example, the establishment of career development schemes with

incentives that would help retain trained professionals in the country programme.

The level of knowledge within the target group (s) is an additional factor to be

considered in designing and implementing training programmes. This is important for

formulating relevant curricula and appropriate materials and for determining the

length of a course. In this connection, it was also noted that prospective trainees

were often aware of their own shortcomings and could articulate rather well the

specific areas where they require training. As a rural teacher from San Lucas

Toliman in Guatemala states: “A six grade student asked me how a woman got

pregnant and I was unable to answer his question. I told him I would give him an

answer the next day. The next day the student appeared and asked me to do what I

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promised. I then told him a woman got pregnant when she had relations, and he

asked me what “having relations” was. I just didn’t know what to answer.”

Effective training should be based on proper needs assessments. Such

assessments refer both to the demand for trained individuals in the concerned

substantive areas as well as the level of knowledge of prospective trainees.

Selection of Trainees

A major concern observed in many training projects relates to the selection of

trainees. Evaluation findings pointed out that trainees for long term training in

specific technical topics such as demography, statistics or family planning were

generally well selected, probably because selection requirements were usually

clearly defined by the training institutions.

On the other hand, the selection of participants for short-term training or

workshops was much less systematic. Evaluations showed that people sent to

courses, especially when these were located abroad, often did not have the

necessary substantive background. Trainees were, in many cases, not carefully

identified in terms of anticipated use of the training. This problem became more

prevalent at interregional workshops where the reward of trip tended to overshadow

the practical reason for participation.

Selection of trainees tended to be more rigorous for long-term training. For

short-term training of workshops, criteria of selection were less well defined or

inconsistently applied. As a consequence, the technical background of participants in

the latter tended to vary quite significantly with resulting uneveness in the

assimilation of knowledge imparted.

Content of Training

Many reports criticised the widespread tendency to train personnel without

reference to their job description. This had led to irrelevant curricula and therefore, to

insufficient preparation of trainees for their future tasks. Frequently, there were no

clear guidelines to link training content to the specific tasks that the trainees should

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be prepared to perform on the job. For example, in many projects evaluated, family

welfare educators usually received very little information on family planning during

their basic training. These professionals acquired their knowledge of family planning

mostly through their work experience. They were, however, the first point of contact

for potential family planning clients at the clinic. Their performance was, therefore,

critical to the clients’ decision to adopt family planning. This important role in

enhancing contraceptive acceptance had, however, been overlooked in the content

of their basic training.

Evaluations of demographic training and research criticised the highly

mathematical profile of the training curricula. In an otherwise highly successful

training project in Malawi, it appeared that “… the content of courses sponsored by

the project favoured the measurement and estimation of demographic phenomena,

whereas for many students, a more substantive discussion of issues, alternatives

and policies would have more significance. Moreover, although the population

courses were optional for all undergraduate students, their technical content

apparently discouraged some of the undergraduate student body from participating,

particularly those students who were uncomfortable with statistics and mathematics.”

Linking training content to the job descriptions of trainees is essential to

ensure that they acquire the appropriate skills.

Training of Trainers

The lack of qualified trainers is a major problem facing population

programmes. Many reports emphasised the need for preparing a cadre of master

trainers to ensure the sustainability of training efforts. The evaluation of an

interregional project on reproductive health in adolescence advocated both the

preparation of a permanent cadre of master trainers and an emphasis on training of

trainers (TOT) to optimise the use of scarce human and financial resources. At the

same time, the widely applied strategy of successive training of trainers, or training

“in cascade”, which usually starts with a pool of instructors trained abroad, was

criticised in many evaluations. It was observed that this approach had led to a loss in

quality of training as one got further from the starting point. The evaluation of IEC in

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support of MCH/FP advocated the replacement of the training “in cascade” approach

with an itinerant team of permanent, highly competent trainers.

Another concern related to the level of competence among training staff in

population topics. Evaluations noted that, in many cases, the personnel in charge of

the training was not adequately prepared in the population area. In a Population

Communication Training Project in Kenya, for example, the staff recruited to the

Population Communication Department, while well qualified in various aspects of

communication, lacked any substantive knowledge of population issues. This

problem also occurred in population education projects, where, in most cases,

educators in charge of the integration of population issues in various other

disciplines, were themselves not conversant with population topics. These

professionals usually had a variety of backgrounds in, for example, health, labour,

social welfare, and they were skilled neither in population issues nor in innovative

education techniques.

It is therefore essential that the competence and qualification of trainers be

ascertained beforehand. In this connection, attention should be paid to both the

substantive as well as methodological aspects of training.

Experience showed that:

a) the strategy of training a permanent cadre of trainers is preferable to the

training “in cascade” approach.

b) the competence and qualification of trainers in population topics should be

ascertained and strengthened, as necessary, before implementing a training

programme.

Training Methods

The evaluations reviewed emphasised the importance of effective and

innovative training methods that are culture sensitive and appropriate to the subject

matter. Along with traditional teaching methods, such as formal lectures, seminars

and workshops, all evaluation reports advocated the introduction of techniques that

facilitate the sharing of ideas and thoughts among participants. Participatory learning

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by doing and group-dynamic approaches were found to be particularly effective in

this regard.

The use of participatory methods of learning was described in an evaluation report of

an interregional project dealing with reproductive health in adolescence. The training

provided by this project emphasisedbehavioural change through interpersonal

communication by stressing listening skills. Numerous trainees interviewed by the

evaluators commented that this approach to counselling had radically changed their

views from a process of didactic instruction to one of assisting people in reaching

their own decisions regarding behaviour. The two-way communication aspect was

apparently both eye-opening and welcomed as a tool for improving services for

adolescents.

Another example is a Population Education project in Sudan that introduced

some innovative teaching techniques and achieved a break from the old ways of

teaching. The new approach placed the student rather than the teacher at the centre

of the pedagogical process. In addition, the project integrated population education

concepts into different subjects of the school curricula. This required an

interdisciplinary approach to population issues, reorienting the previous strategy of

teaching population topics separately.

Participatory methodologies can also be used for training in population and

development planning. In many UNFPA-supported projects in this area, training

techniques requiring role-playing and simulation games were used to simulate

planning and policy formulation processes. In addition, case studies were used to

familiarise students with the use of planning models for policy analysis and offered

opportunities for empirical work within a theoretical, conceptual framework.

The effectiveness of training depends to a large extent on the quality of the

methodology should take into account both the socio-cultural characteristics of

trainees and the specificities of the subject matter. The use of participatory

approaches should be explored, where feasible, especially with regard to training

that aims ultimately to effect behavioural changes.

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Training Materials

Manuals, guidelines and IEC materials for population training were the weakest

component in all projects evaluated. In demographic training, use of appropriate

materials including microcomputer simulation programmes to illustrate population

dynamics was found to be infrequent, although a wide array of such materials had

been produced by an interregional project that supplies them free of charge.

Unfortunately, the outputs of this project did not appear to be well known at the

country level.

The evaluation findings pointed out that training in population and development

made extensive use of demo-economic models. In most cases, however, these

models had not been designed for training purposes, but for use by planners.

Therefore, when used in training programmes, their complexity should be reduced to

a few meaningful relationships to avoid confusing trainees whose educational

background may n for a thorough understanding of complicated planning issues.

The absence or inadequate supply of relevant material in medical and paramedical

schools imposes a heavy burden on training in MCH/FP. Practically all evaluation

reports reviewed in this sector emphasised the lack of or inadequate dissemination

of manuals and guidelines at all levels of the service delivery system. In addition, the

reports pointed out the low incidence of pre and post testing of materials despite the

general acknowledgement that these are critical steps towards qualitative

improvement of services.

The quality of materials used was stressed by almost all the evaluation reports as a

decisive contributor to training effectiveness. An example is the evaluation of quality

of family planning services which recommend support for the development of

culturally appropriate and understandable materials for training service providers in

MCH/FP. Innovative and effective teaching methods need appropriate teaching

materials for better impact.

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Impact of Training

Impact evaluation is important for assessing the effectiveness of training.

Such evaluations should examine, inter alia, the appropriateness of both training

curriculum and teaching methodology. Various reports stressed that the quality of an

impact evaluation depends greatly on its being planned for in the original design of

the project or programme. Thus, evaluations of impact should not be viewed as

periodic events: continuous, in built evaluation mechanisms should form part of the

strategies for project execution to gather data for eventual impact assessment.

The reports reviewed for this paper, however, rarely refer to this type of

exercise. In most cases, only the impact of short-term training was assessed. For

long-term training, as in demography or in-school population education, evaluation of

impact rarely occurred.

An exception was the evaluation of a population education project in Morocco.

Based on an experimental type of design, using both quantitative and qualitative

methods, the evaluation of this training reached some unexpected findings. For

example, it showed a discrepancy between the knowledge of population issues

among students and their attitudes concerning population problems. Although

students were very interested in rather complex subjects, such as “population and

development” and “population and alternatives for the future”, they did not change

their attitudes on everyday life concerns, such as the number of children desired.

The evaluation pointed out the influence of traditional and cultural norms on the

attitudes and beliefs of the students and highlighted the inappropriateness of the

teaching methodology used by the project.

A concern stressed by many reports and by the UNFPA publication

“Population Policies and Programmes. Lessons Learned from two Decades of

Experience” was the infrequent use of evaluations findings. In most training

programmes, no follow up system was implemented that would allow trainers to

collaborate with and help the trainees in their undertakings after the training. A

general conclusion of the reports reviewed was that evaluation findings infrequently

entered the decision making process and that they were not used systematically for

reorienting or designing training programmes.

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An impact evaluation provides significant information on the extent to which

the training content and methodology and should be integrated in the project design.

Institutional Environment

Implementation of training is often influenced by external factors such as

political stability, economic conditions, institutional capacity in the field of population

and stability of training institutions and staff retention. Attention to these factors is

important for the institutionalisation of training systems within countries, to ensure a

continuous supply of qualified personnel.

The influence of the institutional environment was obvious in the training in

demography project in Honduras. The University where the project was located was

often disturbed by strikes and social and political incidents. These led to recurrent

interruptions of courses and departure of students. As a result, the evaluation

advised the re-location of the project in a more stable setting.

It must be recognised, however, that the institutional environment is usually

beyond the control of managers of training programmes. The structural requirements

necessary for the sustainability of training efforts have to be addressed by political

decision-makers. They have the ultimate responsibility to ensure the optimal

conditions to enable training facilities to respond to the needs of the country.

The capacity of the institutional setting to meet training needs is related to

exogenous factors such as political decisions, economic conditions and institutional

resources. In most cases, these factors are beyond the control of managers of

training programmes.

1.4 PRESENT INDUSTRIAL SCENARIO

The employees are provided with both on the Job training and off the Job

training, Training is to fill the gap between actual performance and excepted

performance,

Various types of training provided to the employees are

♦ Internal

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♦ External

♦ Multi skills training

♦ Field Work

♦ Project Work

♦ Industrial Visit

♦ ITI Govt. Apprenticeship Training

♦ Vocational Students Training

♦ In plant training to students

♦ Induction training

♦ Regular training from annual training needs Identification

♦ On the Job training for new or transferred employees

♦ Development programme Induction training

Induction training is provided as part of the placement activity of HRM

process. Once selected candidate is joined, he is inducted in the organization to

understand its various practices, products and processes, linkages in the process,

Interaction points for his position, quality management system and safety systems.

HRD interacts with the functional heads of the function in which the candidate

is to be placed, to arrive at the areas where more focus should be given, accordingly

a schedule is provided to be the newly recruited employee. An induction manual

which contains the essential details about product/ processes, systems and

organization is provided for reference.

Once the induction training is completed a written test is conducted to know

his leave of understanding. HRD & the HOD concerned will evaluate the

effectiveness after which the employee is placed on the job. Incase, my further

training is found necessary it is arranged. The level of learning and his performance

is received after 3 months using post induction review.

The employee is induced in the regular training programmes as per his

training requirements identified by his functional head.

Monthly training programme details are informed to the functional heads

through Inter Department Memo to ensure the participation of the employee 5 days

prior to the start of the month.

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Training hall requirement, training aids like OHP, multimedia projector etc are

booked by the HRD personnel though lotus notes/e-mail and the status of the same

is viewed online before the commencement of the training the HRD personnel goes

to the venue and checks the arrangement.

Participates attending the training are recording in training programme

attendance. At the end of training the participants are asked to evaluate and give

their feedback in training program. The feed back is consolidated and analyzed

through program evaluation questionnaire. Retraining is planned if the overall rating

is less than 50%. Details of the training attended by the employees are entered in

the individual training record.

After completing the training the effectiveness is assessed based on the

objective test.

On the job training is provided to the new and the transferred employees and

on the effect of non conforming products over the customers.

On the job is focused on function related specific aspects which is conducted

by the foremen/supervisors in the particular function.

The training focuses on the job content this is accomplished through an

instruction session and subsequently evaluating the performance through

observation by the superior once the employee starts performing to the expected

level, the functional head will inform the HRD for recording the same in the individual

training record.

Development Programme

Development programme is conducted for the potential employees to enable

them to acquire competency to hold higher responsibilities in future.

21

CHAPTER 2

2. PROFILE OF THE ORGANIZATION

2.1 INDUSTRY PROFILE

Elgi Electric with over four decades of experience has been engineering

solutions for the Textile and Motor Industry. The ability to comprehend customer

needs and to evolve customized solutions is what makes it stand apart. The

company has always been in the forefront of technological advancements has

designed and developed products to suit the futuristic requirements of the industry.

The company's textile products are a testimony to its technological superiority.

Small wonders then, over 25 million spindles spread across the globe, are spinning

high quality yarn with Elgi Electric make products. The company offers customized

solutions to every application. Be it spinning or weaving, it's range has just the right

product for every application.

Apart from this, the company's portfolio of products comprises of yarn

conditioning systems, centralized vacuum cleaning systems, metal and spark

diversion systems, pneumafil waste collection systems, etc. Just to name few.

Motor Division offers premium/high efficiency electric motors, alternators and

DG Sets. We also offer AC/DC motors and traction changing pointing machines to

Indian Railways.

No wonder, Elgi Electric's customers have that extra competitive

edge.Technical tie-up with the world leaders have helped Elgi Electric in latest

advancements and reinforce the image of Elgi as Quality conscious manufacturer.

22

2.2 COMPANY PROFILE

2.2.1 INTRODUCTION

Discipline, Honesty, Trust & Communication are the four basic precepts

essential for the success of our organization.

Discipline is our way of life. Without it, all our planning of resources viz., men,

money, material, machinery & Methodology at our command will serve no useful

purpose.

Honesty & integrity are the pillars on which an organization’s services rest.

We believe that all our actions must adhere to this value.

Trust and openness are value built over the years and we response implicit

faith in this. It is people who act as the guiding force to achieve our commitment &

goals.

Communication plays a vital role and we value open communication. It is our

duty to make the work atmosphere congenial and fraternal and that communication

should cross all the levels and function each working day and at any available

opportunity.

We believe in participative style of management which would ensure

dependability and dedicated involvement of people throughout the organization.

Thus, we offer a tremendous amount of learning for those who have the

initiative and innovativeness for a dynamic change process. With your background,

knowledge, skill and aspirations,we look forward to your valuable contributions in our

never ending strive for excellence.

And finally, a virtue that all must strive to achieve and demonstrate viz.,Dignity

of labours, no task however small or large is les or more important.

23

2.2.2 MANAGEMENT:

Under the leadership of its Chairman, Mr.D.Vidyaprakashand the

Managing Director,Mr.SumanthRamamurthi and the Cheif Operating

Officer,N.RavichandranELGI Electric strives to meet the modern business

demands ethically. The people led skills, the initiatives taken by the Group and the

team spirit helps ELGI Electric to march ahead in becoming a global leader.

2.2.3 CORE ATTRIBUTES :

Being Driven by Market Need

Staying Focused

Being True to processes that we have laid down

Being fair and ethical at all times

Through Team Work and goal congruence at all levels

Assessing its progress through the satisfaction of its clients

Determination, Passion & Integrity

2.2.4 RESEARCH AND DEVELOPMENT:

Elgi is well equipped with an extensive research and development

department.

Technology transfer from world leaders helped Elgi to produce world class

products and achieve the leadership in the textile industry.

The research wing provides solutions for the challenges ahead and brings

products with the futuristic features

2.2.5 VISION STATEMENT OF THE COMPANY

i) MOTORS DIVISION

ELGI electric strive to become a major player in the industrial Motors

Business.

24

In order to meet the unprecedented competitions due to globalization of the

economy, we have to improve our competitiveness manifold and maximise value for

our customers and stake change our way of working.

ELGI Electric will use business Reengineering as a tool to bring about a

dramatic improvement in its performance & growth. Through reengineering we plan

to achieve the following goals.

1. 30% of turnover should be contributed by new products.

2. Overall cost reduction of 10% by next year, 15% by the year after next.

3. Zero complaints from customers on quality on products & service.

4. 100% adherence to delivery schedule to our customers.

5. Zero failure on commitment to our vendors.

We will make our employees realize the importance of this effort and play a

positive role towards total customers’ satisfaction. We will also strive to create an

atmosphere of ownership among our employees.

We will name out reengineering programme as ‘SPRINT’ which reflects our

goal.

S - Sales to increase

P - Profitability to increase

R - Reduction in cost of operation

I - Innovation in process

N - Nil complaints from customers

T - Total customers’ satisfaction

ii) OHTC (OVERHEAD TRAVELLING CLEANER) DIVISION

ELGI electric will strive to maintain the market leadership in India.

In order to meet the unprecedented competitions due to globalization of the

economy, we have to improve our competitiveness manifold and maximise value for

our customers and stock holders. We are in a situation where we will have to bring

25

ELGI Electric to the front ranks, which cannot be reached by its competitors. To

achieve this objective we have to radically change our way of working.

ELGI Electric will use business Reengineering as a tool to bring about a

dramatic improvement in its performance & growth. Through reengineering we plan

to achieve the following goals.

1. 30% of turnover should be contributed by new products.

2. Overall cost reduction of 10% by next year, 15% by the year after next.

3. Zero complaints from customers on quality on products & service.

4. 100% adherence to delivery schedule to our customers.

5. Zero failure on commitment to our vendors.

We will make our employees realize the importance of this effort and play a

positive role towards total customers’ satisfaction. We will also strive to create an

atmosphere of ownership among our employees.

We will name out reengineering programme as ‘SPRINT’ which reflects our

goal.

2.2.6 HISTORY:

Incorporated on 25th Apr 1963 as Pvt Ltd

Commenced on 1964 with the manufacturing of wood working machines in

collaboration with M/S FESTO MACHINE FABRIC, GERMANY

Diversified manufacturing of DC mototrs& signal machines for Railways.

Widened its activities with the production of DC motors for other industrial

applications.

Today, it is the leading producer of DC motors for all Zonal Railways, Railway

production units, NTPC, SAIL etc., SIEMENS, Railway Products India Ltd,

Crompton Greaves, ITW Sigmode, Kone Elevator India Ltd etc.

2.2.7 MILESTONES

1970 – OHTC for textiles

1977 – Clear Roller Cleaner for Textiles

26

1991 – Technical collaboration with ERNST JACOBI GmbH, Germany

1996 – Jun, Technical collaboration with M/S ARGUS FIRE CONTROL Inc,

USA

1996-97 – Expansion of manufacturing of special purpose motors & point

machines

1997 – Diversification of manufacturing of PVC based products like Power

duct, Pipes, Profiles

2.2.8 GROUP OF COMPANIES:

LG Balakrishnan& Brothers

ELGI equipment Ltd

ELGI After Sales

ELGI Finance/Polytex/Ultra

ELGI Tread India Ltd.

ELGI Training Centre

LGB Textiles

Precot Mills

Premier Mills

SARA ELGI GROUP

Super spinning mills Ltd.

ELGI Electric and Industries Ltd.

ELGI Building Products Ltd.

SARA ELGI Arteriors Ltd.

SARA ELGI Envirotech Ltd.

SARA ELGI Industrial R & D Ltd.

2.2.9 PRODUCTS EVOLUTION THRU YEARS

YEAR PRODUCT COLLABORATION

1970 OHTC Own

1977 Clearer Roller Cleaners Own

1991 OHTC M/S ERNST JACOBI FmbH, GER

27

1995 Brushless Alternator M/S WTS GUINALT CIE, FRA

1996 Fire Protection System M/S ARGUS FIRE CTRL INC, USA

1997 PVC Pipes & Profiles M.S WIESNER

2000 Yarn Conditioning System M/S WELKER GER

2.2.10 QUALITY CERTIFICATION:

ELGI Electric got ISO 9001:2000 from M/S K.P.M.G Agency in 2001.

ELGI Electric got ISO 9001:2000 from BUREAU VERITAS Agency in the year

2007.

2.2.11 QUALITY POLICY:

Customer satisfaction is our primary goal.

Our actions are directed at delivering Quality Products & Services in time as

per agreed terms & specifications on continued basis.

To make continual improvement in the process & people.

CHAPTER 3

DEPARTMENTAL ANALYSIS

The various Departments in ELGI are

1. Human Resource Department

2. Finance Department

3. Production department

4. Materials department

5. Marketing department

6. Quality department

7. Systems Department

8. Research & Development Department

28

3.1 HUMAN RESOURCE DEPARTMENT

3.1.1 INTRODUCTION

HR department handles the most valuable yet vulnerable resource of the

company i.e. the employees. It is concerned totally with maintaining the harmony

within employees, friction free employees, and employer relation, keep the morale

high, reduce all causes of employee fatigue or failure, take care of accidents and

safety, keep a striking balance between satisfying the employee Land profit sharing

etc

3.1.2 PURPOSE

To drive overall HR department with robust system and policies for

recruitment, development, retention, compensation and employee engagement to

achieve the business goals.

3.1.3 STRUCTURE

3.1.4 FUNCTIONS

The human resource department is accountable for manpower planning and

budgeting as per business requirement. They develop strategies to cut down the

Vice President - HR - Corporate

Sri. P.M. Jagadeesan

Head HRA.Shanmuga Sundaram

Asst.R.Balachandran

Security

House keeping

OfficerL.James

Asst.V.Nithyanandam

Jr.OfficerP.Nithya

ETP Operator

29

manpower cost to increase profits. The department interprets company goals into

departmental goals and ensures communication to all employees. It ensures

performance driven culture across the organization. They monitor on time hiring

based on business required. Plan and conduct new employee orientation and foster

positive attitude towards employee goals.

Identify training needs and accountable for training and development for

employees at all levels. Responsible for improving employee engagement by

controlling attrition, attracting and retaining high quality talent. Preparation and

implementation of HR policy systems and organization chart. Ensure smooth

functioning of canteen, safety and security, house keeping, contract management,

employee welfare activities.

Helps the organization maintain a good rapport with government officials.

Identify legal requirements and government reporting regulations affecting HR

function. Implement cost control measures across the organization. Have periodic

interaction with all levels of employees to make them aware of the company’s

position, competition, future trends and motivate them to adapt to the changing

environment. Establish a code of conduct for the employees and promote ethics

and value system in the group concern.

3.1.5 RECRUITMENT AND SELECTION

Application

paper advertisement

Campus Interview

Internal /External.

3.1.6 SELECTION CRITERIA

Age

Communication Skill

Physical Stamina

Leadership Skill

Social & Human Relation Skill

Formal education

30

Technical Education

Previous Experience

Social Status

Suitability to the post.

3.1.7 METHODS OF SELECTION

Aptitude Test

Intelligence Test.

Attitude test

Achievement test

Personal Interview

Group discussion

3.1.8 PERFORMANCE APPRAISAL

At all levels

Executives, Staff, Workers, Trainees and Apprentice.

Periodical appraisal

Reporting officer Appraisal

HOD Appraisal

3.1.9 PROMOTION

Based on organizational needs

Based on skill requirement

Based on Manpower

3.1.10 STATUTORY COMPLIANCE:

Employees provident fund organization

Employees state insurance corporation

IFS

TPCB

Local panchayat

Employee Exchange

Gratuity, Bonus, Min wages, Govt. ITI

31

3.1.11 EMPLOYEE WELFARE:

LRG Ranganayakiammal Charities

o Medical Asst.

o Educational Asst.

Uniforms & Shoes/yr

Attendance Incentives/month

Night shifts Allowances/month

Egg allowance/month

Educational loan/yr

Death relief fund – Till service

Group mediclaim& group personal Accident policy

Protective Equipment

Retirement benefit fund

Diwali cloth purchase coupon

EMBF (Employee Mutual Benefit Fund) for 5 yrs

Sports

Spectacles allowances/2yr

Family planning is encouraged with cash advance

Medical checkup

LGR Nagar Residents Association

Employee marriage contribution – Rs.2000/-

Birthday Greeting Issued

3.1.12 COMMITTEE & MEETING

Worker representative committee –as and when required

Canteen committee – every Monday

EMBF committee – every 5th

Departmental meeting/week

Management review meeting/month

House keeping committee/month

Land committee/month

AyuthaPooja committee – when required

32

3.1.13 SECURITY

Security staff headed by the chief security officer works at all the shifts. To

facilitate the security measures, single point entry is adopted to control visitors. For

materials separate gate passes are issued

3.1.14 HUMAN INVENTORY:

Manpower, 1st Sep, 08’

Division

wise

Operators Staff Apprentice Casuals Total

RMD 111 25 18 0 154

Textile 149 52 10 0 211

Sheet Metal 12 2 1 0 15

Corporate 4 20 0 7 24

Grand Total 276 99 29 7 411

Staff:

Total - 99

Permanent - 78%

Probationers - 9%

Trainers - 13%

Operators:

Total - 312

Permanent - 87%

Probationers - 1%

Trainers - 1%

33

Apprentice - 9%

Casuals - 2%

3.1.15 OBSERVATIONS:

Recruitment is done through advertising in leading portal, and the procedure

is the standard procedure. Also there are opportunities for the heirs of the

workers to join in their organization through interviews.

There is no restriction for the worker to see the HR manager and can enquire

about anything with them.

The manager is so well going with the workers and he move with them with

interest.

Here the relation between the top level and the lower level are well

appreciated. This helped the company to well come across in some hard

situations.

But in contrary, there is a well marked labour turnover which accounts for the

decreased improvement in the growth as a whole.

Uniforms are provided by the company per year, with many provisions for

their well being.

Overall, to say, the workers are more interested in working for the company.

3.2 FINANCIAL DEPARTMENT

3.2.1 INTRODUCTION

The probability that a component part, equipment, or system will satisfactorily

perform its intended function under given circumstances, such as environmental

conditions, limitations as to operating time, and frequency and thoroughness of

maintenance for a specified period of time.

3.2.2 PURPOSE

Monitors quality engineering and customer complaints and ensures high

standard of quality in products manufactured and to reduce rejections and rework at

34

various stages. Ensures that produce PPM are maintained as per company target.

Responsible for implementation of processes to improve product reliability.

3.2.3 OBJECTIVES

To arrange adequate funds for the business

To ensure proper utilization of funds

To increase profitability of business

To maximize the value of the firm

To do the analysis and appraisal of financial performance

To anticipate the financial needs

To maintain good relations with suppliers and monitor their performance

Physical location and stocking of materials

Minimization of damage

3.2.4 FUNCTIONS

Arrangement of funds

o Reserves and surplus

o Deferred Tax Liability

o Secured Loan

o Unsecured Loan

Funds management

Funds management includes payments like salary, wages, repayment etc.

Expenses and revenues:

Financial forecasting and planning

To advice top management on all financial matters and to suggest various

alternative solutions to any financial difficulty

Co –ordination and control

Help in tax administration and tax planning

Preparation of audit report

Storage of raw materials ,finished goods and engineering goods

Handle scrap disposal

35

Material, Factory, administrative expenses are managed and controlled.

Managing revenues within budgeted limits (expenses) and to attain the budgeted

revenues.

3.2.5 BUDGETING

Budgeting is done for the period of April 1 to 31st march of every year-It is

done by estimating

1. Estimating domestic and foreign sales.(Marketing department)

2. Based on number of units, Material Requirement and its total cost required Is

calculated

3. For some components Job Work is needed, total cost involved for job order is

calculated.

4. Expenses for Manufacturing goods such as wages, salary, power etc., are

calculated

5. Administrative expenses are calculated...

6. Adding (2+3+4+5), gives budgeted value,, based on estimated sales

revenues are calculated.

7. From above values, budgeted profit, taxes are calculated.

8. Budgeted values and actual values are compared. Reasons for deviation of

actual are analysed. It might be market condition, raw material prices and

other political economical factors. If there is deviation due to assumptions

(wrongly), it is corrected during next year budget.

3.2.6 CREDIT POLICY

Credit policy for both the customers and suppliers are decided by following

factors

Negotiation, Demand and supply, Long term Relationship, Price

3.2.7 CASH SECTION

All cash receipts and payments are carried out in this section. Daily cash

transactions are properly recorded and maintained in this section, which is

completely computerized.

36

3.2.8 FUNCTIONS OF CASH SECTION

1. Preparing and maintain daily cash receipts and payments register

2. This section deals with their bankers

3. This Section is responsible for all payments relating to remunerations such as

salaries and other expenses.

3.2.9 INCOME TAX

The income of all employees will be assessed and deducts the tax from the

employees whose salary exceeds the limits.

3.2.10 SERVICE TAX

Service tax will be paid for any service rendered to the company.

3.2.11 COSTING

The major objectives of the costing section are to maintain accuracy of quality

reports and the preparation of MIS in quality cost in order to submit the same to the

management. Costing section maintains the function of keeping the stock ledger.

The functions of costing section include, preparation of MIS, ascertaining the product

cost etc. the main aim of MIS preparation is to provide information to the

management, regarding the production and allied data

3.2.12 PAYROLL

The duty of executive of the payroll section is to perform salary calculations. All

such calculations are done with the help of the software. This helps the executive to

monitor the time office section where the attendance of the workers is registered.

When a person is appointed by personal department they will specify his amount of

pay, allowances payable and the same is intimated to the payroll section

Function of payroll section include

Salary calculations

Employee states insurance (ESI) calculation

Provident fund calculations

Income tax calculations

37

3.2.13 BALANCE SHEET (Rs. in Crore)

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Sources of fundsOwner's fundEquity share capital 6.27 6.27 6.27 6.27 6.27Share application money - - - - -Preference share capital - - - - -Reserves & surplus 190.54 160.61 129.90 115.09 104.61

Loan fundsSecured loans - - - 4.45 6.59Unsecured loans - 0.01 0.18 0.19 2.29Total 196.82 166.89 136.35 125.99 119.76

Uses of fundsFixed assetsGross block 152.93 134.57 127.08 117.82 111.81Less : revaluation reserve - - - - -Less : accumulated depreciation 91.12 86.35 88.07 82.57 74.03Net block 61.81 48.21 39.01 35.26 37.79Capital work-in-progress 1.01 0.76 0.08 0.28 1.65Investments 38.57 34.07 16.05 16.00 22.21

Net current assetsCurrent assets, loans & advances 218.80 242.17 207.57 166.46 142.13Less : current liabilities & provisions 124.75 159.89 127.82 93.16 85.04Total net current assets 94.05 82.28 79.75 73.30 57.09Miscellaneous expenses not written 1.37 1.57 1.46 1.15 1.03Total 196.82 166.89 136.35 125.99 119.76

Notes:Book value of unquoted investments 36.82 32.33 14.31 14.26 8.03Market value of quoted investments 3.47 4.70 5.83 10.62 12.09Contingent liabilities 3.51 6.35 5.99 7.94 9.07Number of equity sharesoutstanding (Lacs) 800.00 800.00 800.00 800.00 800.00

3.2.14 PROFIT & LOSS ACCOUNT

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Income

Operating income 480.75 452.41 379.49 313.09 286.51

38

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Expenses

Material consumed 311.88 303.01 254.54 207.71 181.72

Manufacturing expenses 9.42 8.67 7.12 5.68 5.84

Personnel expenses 43.52 38.10 35.37 27.89 22.76

Selling expenses 16.72 19.41 16.89 15.56 18.81

Adminstrative expenses 31.71 23.16 23.00 18.51 20.46

Expenses capitalised - - - - -

Cost of sales 413.25 392.35 336.91 275.37 249.59

Operating profit 67.50 60.06 42.58 37.73 36.92

Other recurring income 2.82 3.92 3.08 3.59 3.87

Adjusted PBDIT 70.33 63.98 45.65 41.32 40.79

Financial expenses 1.44 1.79 1.47 1.20 0.96

Depreciation 7.95 6.83 6.92 9.32 9.61

Other write offs 0.68 0.69 0.62 0.53 0.49

Adjusted PBT 60.25 54.67 36.65 30.27 29.73

Tax charges 23.52 15.86 11.17 9.38 9.50

Adjusted PAT 36.73 38.81 25.47 20.89 20.23

Non recurring items 3.02 0.72 -2.10 -3.26 1.16

Other non cash adjustments -0.27 - - - -0.21

Reported net profit 39.47 39.52 23.37 17.63 21.18

Earnigs before appropriation 122.10 95.43 65.50 51.09 42.68

Equity dividend 8.15 7.53 6.27 6.27 6.24

Preference dividend - - - - -

Dividend tax 1.39 1.28 0.97 0.88 0.85

Retained earnings 112.55 86.62 58.26 43.93 35.59

39

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

Mar ' 05

0

5

10

15

20

25

30

35

4039.47 39.52

23.37

17.6321.18

Net Profit

Reported net pr...

OBSERVATION

Calculating the payroll for the worker

Costing

Accounts through the system

Sales order

3.3 PRODUCTION DEPARTMENT

3.3.1 INTRODUCTION

Production is the use of machines, tools and labor to make things for use or

sale. The term may refer to a range of human activity, from handicraft to high tech,

but is most commonly applied to industrial production, in which raw materials are

transformed into finished goods on a large scale.

3.3.2 PURPOSE

To achieve production target on time.To maximize shop efficiency and

maintain high quality standards.Provides products of high quality for sale as per time

40

specified, while effectively utilizing the production facilities and manpower available

and practicing efficient procurement and production techniques.

The ELGI Electric is most concerned with both Textile and Motors section.

They are in the height of extreme importance in both these sectors.

Elgi Electric is a renowned name in the textile Industry. Today, with over three

decades of experience, the company has been providing engineering solutions for

the textile industry. The company has always been in the forefront of technological

advancements and has designed and developed products to suit the futuristic

requirements of the industry.

3.3.3 PRODUCTS

i)TEXTILE PRODUCTS

a. YARN CONDITIONING SYSTEM

The difference between Conventional yarn and Profix Conditioned yarn is

rather obvious. Conditioned yarn.gives to you advantages that contribute to enhance

production efficiency both at the knitting and weaving Stages. Made Possible by

significant increase in single yarn elongation, yarn Strength, better hairiness value

and constant coefficient friction.

Perfect Yarn Condition System is defined to deliver maximum value and

incorporate World class standards and is ideal for treating all kinds of Yarn.

41

Elgi Electric also manufactures Conventional Yarn conditioning plant

“SUPERGAIN” without Energy Saver Unit. You can choose between PROFIX

Energy Saver and "SUPERGAIN"

This Product is manufactured with German Technology

Features

The chamber is made of corrosion-resistant stainless steel material. It is

thermally relaxed for dimensional stability and fabricated to precision

Equipped with energy saver unit for power saving

Equipped with latest version of PLC (Programmable Logic

Controller)compatible with Window based software

Water level sensor interfaced with PLC facilitates automatic feeding of water,

thus eliminating the need for a separate pump or manual feeding

Well-proven automatic platform arrangement makes easier for loading and

unloading process

Single stage, mono block water ring pump is used. Which is Equipped with

activation protection

Silicon rubber door seal is used to withstand high temperature application

Low Temperature Conditioning – possible form 46'C

Heat Setting – possible up to 120'C

42

Single cycle or multi cycle up to 20 steps - possible in cop, cone and hank

form

Safety instruments – incorporated as per International Standards

Control Panel

Equipped with Programmable

Logic Controller (PLC) ensure

safety of the stored programmes

The advanced design of the

system does not require stabilizer

and backup battery.

Up to 8 sets of various

programmes can be stored.

Single cycle or Multi cycle (up to

20 steps) programming is

possible.

Analogue and Digital modules are designed for up-gradation and

expandability.

Double protection for total circuitry.

OPTION : Interfacing facility for production data available.

Auto Platform

Well - proven automatic platform

arrangement make easier for

loading and unloading process.

A special slipping clutch

arrangement is provided

for safety.

Chain carrier and Arm

movement for feeding

and taking out the

material from the

chamber is interfaced with the PLC.

43

b. SPARK DIVERTER

Spark Diverter: Automatic fire protection system for chute feed and lap feed lines.

Even a single Spark will activate diverter, stop the machine and sound alarm.

Features

TAC APPROVED Automatic

fire Protection System for

chute feed lines

Compact design - requires only

1.5 meters or 5 feet of space

due to high speed - 50

millisecond reaction time

Works in areas of positive or negative air pressure

Simple push - button reset and easy installation

More than 75,000 in use in spinning mills worldwide

Easy installion

Separate filter with pressure guage and solenoid valve are provided for easy

maintenance

High-Speed Diverter Mechanism

50 millisecond reaction time

Pneumatic system-operates at 75 psi or 6 bar air pressure

Low voltage - powered by 24 volts DC from control panel

ARGUS 343 Infrared Spark Detection

Detects single spark or amber at speeds up to 60 meters per second or 200

feet per second

More than 75,000 in use in spinning mills worldwide

Discrimination circuitry reduces false alarms

c. METAL DIVERTER:

44

This unique compactly designed high speed metal detector is an automatic

system for chute feed and lap feed lines.

Features

TAC APPROVED Automatic fire Protection System for chute feed lines

Compact design - requires only 4 meters or 13 feet of space due to high

speed - 50 millisecond reaction time

Removes all metal particles from opening lines

Metal is ejected into collection can, production is

not interrupted

Works in areas of positive or negative air pressure

The system working time is recorded up to 10,00,

000 hours.

Micro processor based system with interfacing

facility (Remove programming is done with the help of RS232 interface)

All the programs can be Restricted by using passwords

Counter is provided to display the Metal Detector activation

Metal Detector

Detects all metal (ferrous & non ferrous) as small as 2 mm

Detects particles moving at speeds up to 33 meters per second or 108 feet

per second

Full digital control

Programmable - 100 levels of sensitivity

Light weight (24 kgs or 53 Lbs) - suspends on non-metallic duct without need

for bulky floor support

Remote programming & diagnosis possible by RS 232 interface

Non Metallic Duct

Strong, lightweight, antistatic composite duct

Does not interfere with performance of metal detector

d. OVERHEAD

45

The Company pioneered the concept of Overhead Cleaners in India.

Technical collaborations with world leaders in Germany have helped reinforce the

image of Elgi Electric as a quality conscious manufacturer. The company's products

are a testimony to its technological superiority. Small wonder then, over 50 million

spindles (50,000 OHTC's) spread across the length and breadth within the country

and outside, are spinning high quality yarn with Elgi Electric OHTC's. The company

offers customized solutions to every application. Be it spinning or weaving, straight

or curved path, it's range has just the right product for every application.

Apart from this, the company's portfolio of products comprises of Yarn

Conditioning Systems, Metal and Spark Diversion Systems, Bobbin Transporting

System, Cone Packing Machine, Centralized Vacuum Cleaning Systems, Energy

Saving Motors, etc. just to name a few.

No wonder, Elgi Electric's customers have that extra competitive edge.

e. CONE PACKING MACHINE:

Working Principle

ROCKPACK/HP Machine automatically warps-up either conical or cylindrical

yarn packages having variable diameter (from 160 to 300 mm) with a high-density

polyethylene film.

One of the major features of the ROCKPACK/HP Machine is that it does not

carry out welding operations on the polyethylene film used for packing process.

The wrapping is performed by actuating a piston, which pushes the edges of

the film (already wrapped around the Cone/cheese) inside the spool, thus obtaining

a better yarn packing presentation and an easy-to-remove packing material at the

time of usage.

Working Capacity

The ROCKPACK/HP Cone packing machine can pack up to 900 Yarn

packages/Hour approximately (depending on the type of Cone/Cheese used).

46

Advantages

Higher Productivity

Man Power Reduction

Accuracy and Flexibility

Relief from Heavy lifting

A Complete control of Material Flow

Elimination of Yarn damages

f. BOBBIN TRANSPORT SYSTEM

ELGI ELECTRIC with over 3 decades of

experience in Textile Engineering and

renowned for offering innovative and world

class products bring you the state-of-the-art

Bobbin Transport System (BTS).

The Bobbin Transport system

provides economic advantage to package

handling in Ring spinning. It ensures the

protection of Roving wound around the

Bobbin, which is highly liable to damages

during manual transportation BTS also protects the Yarn where the Roving defects

are transferred.

47

Bobbin Transportation System is certainly the area in Spinning Mill where the

investment in Automation is more easily justified due to labour savings and reduction

in damages to yarn. Especially in the coarser count spun the saving will be higher.

BTS Advantages

Can be installed in the existing layout (both Building and Machinery)

Interface any roving and ring frame.

Contact less Bobbin Transport.

No Mix-up of yarn counts.

Technology Up gradation.

Man Power Reduction.

Features

Constant Production for long duration time.

Advantage of extremely simple system forbobbin transporting.

Full digital control

Suitable for fine and medium counts.

Light weight (24 kgs or 53 Lbs) - suspends on non-metallic duct without need

for bulky floor support

Types

Manual Bobbin Transporting System

Closed Loop Bobbin Transporting

System

Automatic Block Creeling Type System

g. CENVAC:

Features

Eliminates handling of heavy equipment

Clean environment

Less maintenance

No lubrication required. Hence oil free air

handling

48

Low noise level

Specially made nozzles facilitate access to reach difficult areas for better

cleaning

Detachable container mounted on castor wheels facilitates easier operation

h. CLEAR ROLLER CLEANER:

Features

An excellents device to clean the

clearer roller automactically

Saves 80% of the cleaning time and

labour

High efficiency with low power

consumption

Low maintenance cost

Easily transportable within the

department

Adjutable to all size of rollers

ii) PRODUCTS - MOTORS

a. PREMIUM EFFICIENT ELGI TECO AC MOTOR

Salient Features - Energy Efficient

Suitable for 415+/-10%, 50Hz +/-5% and combines variation of +/-10% Exceeds EFF1 requirements Non-hygroscopic class F insulation Temperature rise limited to class B Design ambient of 45 deg C Terminal box rotation in steps of 90

deg Detachable cable gland plate IP 55 enclosure Better dynamic response Dynamically balanced High efficiency and Power factor Standardisation of mounting

dimensions for interchangeability and ease of maintenance

49

Rugged construction

b. STANDARD AC MOTOR

Salient Features - High Efficient

Suitable for 415+/-10%, 50Hz +/-5% and combines variation of +/-10% Non-hygroscopic class F

insulation Design ambient of 450 C Use of cold rolled silicon steel

for lamination Larger terminal boxes to suit

even aluminium cables Terminal box rotation in steps of

90 deg IP 55 enclosure Better dynamic response Dynamically balanced High efficiency and Power factor Standardisation of mounting dimensions for interchangeability and ease of

maintenance Designed for Indian tropical environment

c. TECO AC MOTOR

Salient Features - High Efficient

Suitable for 415V + / - 10%, 50 Hz + / -5% and combined variation of + / - 10%

Exceeds EFF1 requirements Non-hygroscopic Class F insulatio. Temperature rise limited to Class B Design ambient 45'C Terminal box rotation in steps of 90' Detachable cable gland plate IP 55 enclosure Better dynamic response Dynamically balanced High efficiency and power factor Standardisation of mounting

dimensions for interchangeability and ease of maintenance

Rugged Construction

d. DC MOTORS:

Dc Motors can be manufactured aganist specific customer requirements.

50

Salient Features

A) Cyclonic Filter Dust Exhauster Motors

The unit comprises of motors and centrifugal type exhauster blower set

Motors are used in Diesel Locomotives to cyclonic the air intake filtration system to feed the filtered air to engine

It carries away by the bleed air to exhaust into the atmosphere

It gives continuous removal of dust particles is make by provision of dust exhauster unit

B) Fuel Pump Motors

The motors are used to drive fuel oil and governor oil pump on Diesel Electric Locomotives

The Motor operates fitted with a pump

C) Crank Case Exhauster Motors

It is a motor exhauster set to exhaust the smoke into the atmosphere produced by diesel engine

The Motor works at 0°C to 55&degC and industry environment

e. POINT MACHINES

Salient Features - Point Machines

IRS Point Machines as per specification No.IRS-S-24/2002 of RDSO It is a Non Trailable Electric Point Machines 143mm & 220mm throw with

internal locking used for operation of points of Railway yards

It is an electrically driven machine operates at 110V DC

Point machines are operated by Station Masters to give directions to the trains to control and regularize the train traffic

It can be operated manually by using a crank handle at the site during the interruption in power supply

f. EG SERIES BRUSHLESS ALTERNATORS

51

Features

Alternators are with automatic voltage regulators Voltage regulation less than or equal +/-1% Class F/H insulation Three times the rated current for

motor starting Total harmonic distortion less than

4% AVR with built-in load acceptance

module Protection against under speed and

the entire range Auxiliary winding to protect from

load distortions Vacuum Pressure Impregnation for enhanced thermal stability Permanent magnets insertion for faster voltage build-up IP 23 and double bearing as options Backed up by over 85 service centres across the country

3.3.4 FUNCTIONS

Accountable for production output, product quality, cost and timely delivery to

customers. Accountable for continuous improvement on various plant performance

parameters such as quality, productivity, cost. Responsible for assuring timely supply

from vendor items competency of team members by training and job allocation. They

are responsible in establishing world class manufacturing practices.

They implement safety norms in production, storage of materials. Liaise with

R&D department on product improvement and new product introduction. Participate

in failure analysis group and feedback on analysis for production improvement.

Implement production management techniques to improve efficiency and reduce

cost. Guide direct reports in worker management and planning activity. Introduce

methods improvement in productivity at all manufacturing points

They plan and execute the production and packing operation as per the

specified time line. Planning and maintaining inventory of raw materials and packing

materials based on plan. They implement the various procedures to improve

productivity. The department follows LEAN manufacturing system for its production

52

process. Initiate cost saving projects and encourage engineers for the effective

implementations.

Review production schedule with production engineer on a daily basis.

Monitor rejection rework levels for each product lines and process. Authorize

engineers change requests, line rejection reports. Monitor work in progress levels

and achieve targeted reduction in it. Participate in failure analysis meeting and

receive feedback in the form of suggestion for improvement in production process.

11 measures for effective production are:

Productivity

The total productivity is calculated as the total of per employee work

multiplied by the total number of days.

ALP-Adherence to Leveled Production

Planning a model and maintaining the production.

On time sales

Production of the required product to be completed within the specified

time and with one week delivery time.

Inventory

Maintaining the stock of the raw materials, finished goods and also the

work in progress products.

Line rejection

Rejection based on the quality of the produced products.

Line rework

The rejected products that can be reworked and used.

Space utilization

The total space utilized is to be reduced. They have planned to reduce

50% of the existing area.

Kanban system

The stock out status of the different components are identified by the

two bin system.

Warranty complaints

Installation

Inward rejection in PPM

53

The rejected parts is calculated in parts per million.

BAAN System:

A system that monitors the required materials, production based on the

demand.

Planning the total number of products is done based on the demand specified

by the marketing department.

MRP-Material Requirement Planning, based on the requirements given by the

marketing department.

Stages in the generation of production order are:

Planning

Release production details

Active production

Completion

Closing

Packing of the finished goods is being contracted. the goods are packed after

audit and the details of warranty and the description about the components are

specified in the packing slip.

Ensure that hour accounting is done for the entire workforce under

supervision. They evaluate the shop floor efficiency in various production lines and

review. They oversee pilot batch production of new product under development and

plan the manpower requirements. Ensure effective implementation of panchatantra

in the shop floor. Review product quality / inspection reports with reliability and

initiate steps to improve product quality. Anticipate the capacity and bottle necks and

find ultimate resource internally or inform head manufacturing.

Consolidate MIS reports of head manufacturing, ontime delivery, production

effective delivery, rates cost reduction, shop efficiency hours. Co-ordinate with the

maintenance department on preventive maintenance of machines. Review ISO

documentation and monitor compliance to the ISO guidelines on production.

Implement multi skill project and encourage workers to develop multi skills in the

54

production area. They council the workers on work ethics and absenteeism.

Encourage workers to come up with more number of suggestions for improvement.

3.3.5 OBSERVATIONS

The layout is perfect with its design to move the products of each stage in

such a way to reduce the waiting time.

When the first part is finished, it is moved to the next stage which is

located very near to that.

All the parts necessary for the product are manufactured by them.

Except for some parts which are imported like the electric board used in

the spark diverter.

The labours were found in the regular uniform.

Power supply is a major drawback in the production process.

Regular power shut, reduces the production and also the industrial time.

They workers are well versed in their field of operation, which resembles

their involvement in the work and also their experience.

The layout is based on the ISO certification, with each section properly

divided from other.

Simulation is also done in their own unit which is an added advantage.

Men shortage is informed well before to the HR department so that they

make such an move to fill the gap either by recruiting or by shifting

workers from other section where the operation is mild.

3.4 MATERIALS DEPARTMENT

3.4.1 INTRODUCTION

Material can be anything: a finished product in its own right or an unprocessed

raw material. Raw materials are first extracted or harvested from the earth and

divided into a form that can be easily transported and stored, then processed to

produce semi-finished materials. These can be input into a new cycle of production

and finishing processes to create finished materials, ready for distribution,

construction, and consumption.

3.4.2 PURPOSE

55

To meet the production needs with the appropriate material on time.

3.4.3 FUNCTIONS

Accountable for procurement at the right time at the right cost to keep the

production line going. Responsible for effective procurement and ensure timely

supply of materials and consumables. Obtain maximum credit limit from vendors.

Ensure participation in production review meeting and address items required

urgently on priority. Co-ordinate with reliability and PED team to improve the quality

vendors and increase the self certified vendors.

Ensure participation in engineering change request meeting with full details

and date of implementation and price impact. Ensure participation in new product

design, review meeting to review it from material functions view point. Lead the

purchase team and communicate the designs across purchase team effectively. Fix

measurable for engineers to achieve the organizational goal.

Attend failure analysis meeting and analyze root cause problems. Review

pending orders and critical items purchase with buyers. Organize rework of purchase

activity plan in case of rescheduling of orders, change in forecast. Review inward

rejection and line rejection with the buyers and initiate the steps to reduce these.

Review on time delivery with buyers and vendor periodically.

3.4.4 OBSERVATIONS:

The various raw materials used in the production are made by the company

itself except some parts.

The electric circuit board used in spark diverter, OHTC etc. are bought from

another company.

Packing material is bought separately.

There is a proper storage facility in the company both for the finished goods or

the parts of the product in various stages of assemblage.

3.5 MARKETING AND SALES DEPARTMENT

3.5.1 INTRODUCTION

56

Marketing is everything that you do to reach and persuade prospects. The

sales process is everything that you do to close the sale and get a signed agreement

or contract. Sales is the pinnacle activity involved in selling products or services in

return for money or other compensation. It is an act of completion of a commercial

activity.

3.5.2 PURPOSE

Provides marketing support to the sales force. To lead sales and marketing

network to achieve targeted sales, turnover, profit, finished goods inventory,

receivables.

3.5.3 FUNCTIONS

Accountable for sales turnover as per budget.Accountable for sales budget

inventory, finished goods and receivables.Accountable for budgeted profits. Control

operational expenses as per budget. Resource planning for the department including

manpower and capital.

Marketing activity includes the 3C’s and 4P’s. The 3C’s used are company,

customer and competitor. The 4P’s are product, position, price and promotion.

Develop sales strategy for product groups to maximize revenue and profitability.

Accountable to develop sales tools for achieving targeted sales. Prepare forecast for

short term and long term planning. Estimate dealer network spread and required

information.

Accountable to drive the product engineers to achieve the targeted sales from

the product groups. Ensure effective and smooth relationship with the dealers and

sales engineers in the regions for growth in business. Ensure monthly sales analysis

for taking the corrective action whenever required. Accountable for sales promotions,

pricing and discounting.

Develop strategy to achieve sales, receivables and inventory targets as per

budget. Meet monthly top line sales goods across products. Build robust evaluation

system to access the sales performance. Conducting competitor analysis by keeping

abreast of market trends and competitor moves to achieve market sales

57

metrices.Evaluating marketing budgets periodically including manpower planning

initiatives and ensuring adherence to planned expenses.

Dealer management evaluation of existing dealer and addition / deletion

based on performance evaluation. Creating and implementing sales policies and

system for direct sales and channel sales. Management of dealers. Obtain price

approvals from original equipment manufacturers whenever required. On time sales

and delivery.Accountable for commercial operations for units and spares.

3.5.4 NETWORK

NATIONAL

For Lmw Textile Machineries

Territory : Tamilnadu,AndraPradesh,Karnataka, Pondicherry &Kerela

Agent Name :Super Sales India Limited

Territory : All states of India

Agent Name : VOLTAS LIMITED

OtherthanLMWFrames,TFO, Looms, Etc

Territory : Tamilnadu

Agent Name : J.Engineers

Territory : Delhi, Haryana,Punjab,Chandigarh, Utter Pradesh, Himachal Pradesh and Jammu & Kashmir

Agent Name : Spintex Private Ltd

Territory : Maharastra - South

Agent Name : Vijaytex Corporation

Territory : West Bengal

58

Agent Name : Dynatex Marketing

Territory : Andra Pradesh, Karnataka, Kerala

Agent Name : R.J.Engineers P Ltd

Territory : Rajasthan

Agent Name : Shree Maruthi Associates P Ltd

Territory : Maharastra - North

Agent Name : VijiayshriTexcom P Ltd

Territory : Gujarat

Agent Name : Sam International

INTERNATIONAL

International Agent : Bangladesh

Agent Name : A.T.E.Technologies [Ban] Private Limited

International Agent : Thailand

Agent Name : Intasia Co

International Agent : Indonesia

Agent Name : PT Protechma Indonesia

International Agent : Egypt

Agent Name : ATAG Export & Import

59

International Agent : Kenya/Thanzaina

Agent Name : Lakshmi Machine Works Ltd

International Agent : For Other Countries

Agent Name : Elgi Electric and Industries Ltd

3.5.5 MARKETING STRATEGY

Colourful & Attractive Banners

The marketing is very unique by having many no if attractive poster importing the importance of each of their products in their industry. Each product comes with many such posters and information catalogue. These are as follows.

Eg.Yarn conditioning System:

This picture is an example of how to easily make anybody to understand what the product does, with a simple comparison. Here the difference in value is much greater to understand.

“Do You Have” Posters:

60

Comparison with Normal Products of same line:

61

3.5.6 OBSERVATIONS:

Advertising is the major part in their product.

Found reputation in various parts of the world.

Products are despatched within the time limit

Estimation of the market demand holds success for them.

There are different versions of the same product for matching different types

of industrial capability.

Low cost and smaller equipment for smaller industry, and that’s larger for high

capital industries.

Discount is provided when bought as a package of equipment

Rich R&D provides such a quality product which maintains and increases the

customer count day by day.

3.6 QUALITY DEPARTMENT

62

3.6.1 INTRODUCTION

ELGI’s quality is the decisive. The quality realization is the backbone of Sara Elgi Group. It is an ISO 9001 – 2000 certified company with exports more than 25 countries around the world.

Meeting latest requirements of customers by anticipating the needs of the customer before customer expects it.

3.6.2 FUNCTION

Has computerized test set up to analyse product performance.

Having stringent incoming inspection norms, maintains quality as expected level by the customer. All measuring and monitoring instruments are being calibrated and are being traced to national / international standards. Calibration system is being monitored through computerization.

The Elgi Electric strength is quality and performance of the product manufactured by them. Quality of final product is determined with sophisticated computerized testing facility.

There are quality checks at every stage of manufacturing starting from raw materials supply. At every stage of the manufacturing process, it is ensured that good quality products only move to the next stage. This assures the best quality output.

Calibrated instruments are being used which are traceable to national / international standards.

Computerized type test facility for AC Generators up to 380 KVA

63

Computerized Routine test facility for A1

Type test facility to AC Motor with Dynameters up to 250 KVA

3.6.3 OBSERVATIONS:

The industry layout is based on the specifications by ISO

Each section in the industry is separated by lines which makes the industry

looks like having different blocks.

Each product is properly tested before packing with the inbuilt testing facility.

Packing is also done properly.

64

3.7 SYSTEMS DEPARTMENT

3.7.1 INTRODUCTION

The system department is responsible for computerized of different

departments of ELGI industries.The main function of this department operates and

co-ordinates all systems in the organization. The simple structure of department

facilities speedy communication flow with in the department.

Structure of systems department

3.7.2 OPERATION

1. Monitoring Operation

Security problems in the System were solved using Central Virus

Scanning System and Firewall solve problems related to network connections.

2. Monitoring Function

The systems department in the plant solved network problems as well as

computer problems, regular back ups were taken daily, weekly and monthly for

providing reliability in the system. All the computers were connected using both point

GROUP MANAGER-SYSTEMS,

EXECUTIVE- SYSTEMS

EXECUTIVE

65

to point and star topology connections. Proper authentication was given to each

department using ID and Password.

ELGI produces many renowned products which is systematized and

maintained by the help of IT department. IT helps them to keep track of every

product, its demand forecast and production cycle. Automobile sectors production

and growth can be ensured using technology advantage.

3. Advantage

Low transaction cost

Better availability of raw materials

World wide availability

Reduced paperwork

Avoid data redundancy

Making relevant database

Brand building

E-mail

Conferencing

Manufacturing planning

Order processing

Quick updation

Recruitment

3.7.3 OBSERVATION

Sever is connected using LAN and WAN

Power fromUPS

The individual database of each worker is maintained properly.

Database related to the finance is really holding the hands.

Internet is provided to the employee and the information like circulars or any

other information is passed through intranet.

The mails are regularly opened up and are properly handled and recognized.

66

3.8 RESEARCH & DEVELOPMENT DEPARTMENT

3.8.1 INTRODUCTION

New product design and development is more often than not a crucial factor in

the survival of a company. This is necessary due to continuous technology change

and development as well as other competitors and the changing preference of

customers.

3.8.2 PURPOSE

To set realistic goals for design engineers and manage their performance.

Undertake special projects and complete them under specified time, budget, cost

reduction, targets. They also generate new products development projects.

Accountable to launch new products on time as given by business

development to increase the line for the business. Finalize new product development

schedules with business development. Prepare and obtain approval for project

development budget. Review project progress on specified milestones. Provide

leadership to resolve project conflicts with internal and external customers and

suppliers.

Guide engineers and motivate team to meet product development objective.

Undertake special projects for design. Ensure complete utilization of design and

development resources. Update and maintain all infrastructure facilities for product

development. Identify training needs for present and future plans. Implement

systematic cost control measures for product resources and day to day operations.

Participate in reviews of deficiencies in existing product performance and

involve wherever necessary in corrective action. Authorize all changes in drawings.

Identify and participate in programs of current development in product design

technology infrastructure and prepare proposals to update existing process

infrastructure. Improve system to improve efficiency of design process.

67

CHAPTER 4

4. COMPILATION &CONCLUSION

4.1 INTRODUCTION

Elgi Electric with over four decades of experience has been engineering

solutions for the Textile and Motor Industry. The ability to comprehend customer

needs and to evolve customized solutions is what makes it stand apart. The

company has always been in the forefront of technological advancements has

designed and developed products to suit the futuristic requirements of the industry.

The various departments which help in the specialization of the company are

4.1.1 Human Resource Department:

Employee Welfare:

LRG Ranganayakiammal Charities

o Medical Asst.

o Educational Asst.

Uniforms & Shoes/yr

Attendance Incentives/month

Night shifts Allowances/month

Egg allowance/month

Educational loan/yr

Death relief fund – Till service

Group mediclaim& group personal Accident policy

Protective Equipment

Retirement benefit fund

Diwali cloth purchase coupon

EMBF (Employee Mutual Benefit Fund) for 5 yrs

Sports

Spectacles allowances/2yr

Family planning is encouraged with cash advance

Medical checkup

68

LGR Nagar Residents Association

Employee marriage contribution – Rs.2000/-

Birthday Greeting Issued

Committee & meeting

Worker representative committee –as and when required

Canteen committee – every Monday

EMBF committee – every 5th

Departmental meeting/week

Management review meeting/month

House keeping committee/month

Land committee/month

Ayutha Pooja committee – when required

These meetings and committee helps to build up a good relation between the

employee and the employer and to shut down any grievances between them.

Also there are no very long procedures to meet the HR manager, since he’s

always available and can at any time they can meet him.

4.1.2 Financial Department

Uses customized software for increase the flexibility of accounting.

All necessary decisions relating to finance is taken by top level officials

Payroll is prepared for each workers with ease with the help of the softwares

and it reduces much time.

Net profit in increasing upto march 2008, but maintains with only a slight

growth in this year.

Arrange adequate fund for the business

Helps in financial forecasting

Help in tax administration and tax planning

Preparation of audit report

Storage of raw materials ,finished goods and engineering goods

Handle scrap disposal

Arrangement of funds

o Reserves and surplus

69

o Deferred Tax Liability

o Secured Loan

o Unsecured Loan

Funds management includes payments like salary, wages, repayment etc.

Expenses and revenues

To advice top management on all financial matters and to suggest various

alternative solutions to any financial difficulty

4.1.3 PRODUCTION DEPARTMENT

The ELGI Electric is most concerned with both Textile and Motors

section. They are in the height of extreme importance in both these sectors.

Elgi Electric is a renowned name in the textile Industry. Today, with

over three decades of experience, the company has been providing engineering

solutions for the textile industry. The company has always been in the forefront of

technological advancements and has designed and developed products to suit the

futuristic requirements of the industry.

PRODUCTS - TEXTILE PRODUCTS - MOTORS

YARN CONDITIONING SYSTEM PREMIUM EFFICIENT ELGI TECO AC

MOTOR

SPARK DIVERTER STANDARD AC MOTOR

METAL DIVERTER: TECO AC MOTOR

OVERHEAD DC MOTORS:

CONE PACKING MACHINE: POINT MACHINES

BOBBIN TRANSPORT SYSTEM EG SERIES BRUSHLESS ALTERNATORS

CENVAC:

CLEAR ROLLER CLEANER:

4.1.4 MATERIALS DEPARTMENT

Accountable for procurement at the right time at the right cost to keep the

production line going. Responsible for effective procurement and ensure timely

supply of materials and consumables. Obtain maximum credit limit from vendors.

70

Ensure participation in production review meeting and address items required

urgently on priority. Co-ordinate with reliability and PED team to improve the quality

vendors and increase the self certified vendors.

The various raw materials used in the production are made by the company

itself except some parts.

The electric circuit board used in spark diverter, OHTC etc. are bought from

another company.

Packing material is bought separately.

There is a proper storage facility in the company both for the finished goods or

the parts of the product in various stages of assemblage.

4.1.5 MARKETING & SALES DEPARTMENT:

Develop strategy to achieve sales, receivables and inventory targets as per

budget. Meet monthly top line sales goods across products. Build robust evaluation

system to access the sales performance. Conducting competitor analysis by keeping

abreast of market trends and competitor moves to achieve market sales metrices.

Evaluating marketing budgets periodically including manpower planning initiatives

and ensuring adherence to planned expenses.

International Buyers are due present in

Bangladesh Bahrain Iran

Srilanka Kenya Turkey

Nepal Nigeria Egypt

Pakistan Tanzania Lebanon

Thailand Uganda UAE

Vietnam South Africa Iran

Indonesia Switzerland Mauritius

4.1.6 QUALITY DEPARTMENT

ELGI’s quality is the decisive. The quality realization is the backbone of Sara

Elgi Group. It is an ISO 9001 – 2000 certified company with exports more than 25

countries around the world.

71

Meeting latest requirements of customers by anticipating the needs of the

customer before customer expects it.

Has computerized test set up to analyse product performance.

Having stringent incoming inspection norms, maintains quality as expected

level by the customer. All measuring and monitoring instruments are being calibrated

and are being traced to national / international standards. Calibration system is being

monitored through computerization.

4.1.7 SYSTEMS DEPARTMENT

The system department is responsible for computerized of different

departments of ELGI industries. The main function of this department operates and

co-ordinates all systems in the organization. The simple structure of department

facilities speedy communication flow with in the department.

Sever is connected using LAN and WAN

Power from UPS

The individual database of each worker is maintained properly.

Database related to the finance is really holding the hands.

Internet is provided to the employee and the information like circulars or any

other information is passed through intranet.

The mails are regularly opened up and are properly handled and recognized.

4.1.8 RESEARCH & DEVELOPMENT DEPARTMENT

New product design and development is more often than not a crucial factor in

the survival of a company. This is necessary due to continuous technology change

and development as well as other competitors and the changing preference of

customers.

Guide engineers and motivate team to meet product development objective.

Undertake special projects for design. Ensure complete utilization of design and

development resources. Update and maintain all infrastructure facilities for product

development. Identify training needs for present and future plans. Implement

systematic cost control measures for product resources and day to day operations.

72

4.2 RESTATEMENT OF THE PROBLEM

4.2.1 HUMAN RESOURCE DEPARTMENT:

High labour turn over

Salary hike and bonus payments can be initiated, when attaining the fixed

targets or more than that.

Quality of the food provided in the canteen can be improved with new

contractors.

Participating the employee in decision making can be done to ensure their

participation in the growth of the company.

The company can go for modernization, by creating the awareness of jobs.

Ventilation in the plant can be improved by installing more exhaust fans of

high power.

The production can be increased by the modernization of plant.

Free times can be provided in between for better relaxation.

73

4.2.2 PRODUCTION DEPARTMENT

The production is much affected by the regular power shut down.

Lack of modernization of the plant due to the opposition of the employees due

to job fear also hinders the target achievement.

If any department goes for strike it would affect the whole production unit.

Many process involves manual work which can be done through machine if

installed, where those workers can be employed in some other work.

Competition is higher with its demand is now going at very lower rate than

before.

Not all the spares are produced by this company, the electric circuits are

bought from some other company

74

4.2.3 MATERIALS DEPARTMENT

The materials for production are mostly produced inside but some other raw

material is bought from outside.

Price volatility of the raw materials

Less demand in the product leads to stacking of the finished goods when

forecasting fails.

Higher transaction cost in the host country

Storage of material is affected due to the format of the industry which leads to

minor problems like defective packing material due to improper seasoning

75

4.2.4 MARKETING & SALES DEPARTMENT

Competition is heavier

Demand is drastically reduced due to financial situation like recession

Raw material cost is much higher and due to this it is not able to maintain the

price o the material.

There is no bondage with textile major like LMW which reduces the

compatibility issues between them

Sales has been very much reduced for the same reason as recession and it is

still aching for recovery.

76

4.2.5 QUALITY DEPARTMENT

The quality is affected by the industrial environment of storing the material.

The employees work in an environment that could be much air circulated

but continuous working creates manual errors in the products.

Supervision is also done manually and small errors are void off from

recovery.

The separation lines made between different sections of the industrial unit

is not properly followed.

77

4.2.6 SYSTEMS DEPARTMENT

The softwares used in some system are outdated and makes the user less

technical than their counter parts in other industries.

Some system has older version of the operating system, this prevents them

from using the latest technical softwares.

Only certain people use the system efficiently since others think that either it

is not necessary or hesitate to study them.

This creates some problem in the condition that if the responsible person is

either absent or left the industry, its not easy at a stretch to maintain the work

performed by that person in the system.

78

4.3 RECOMMENDATIONS OF THE STUDY

4.3.1 HUMAN RESOURCE DEPARTMENT

Salary hike and bonus payments can be initiated, when attaining the fixed

targets or more than that.

Quality of the food provided in the canteen can be improved with new

contractors.

Participating the employee in decision making can be done to ensure their

participation in the growth of the company.

The company can go for modernization, by creating the awareness of jobs

made easier and increased production and also with the salary hikes if

needed.

Ventilation in the plant can be improved by installing more exhaust fans of

high power.

The production can be increased by the modernization of plant.

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4.3.2 PRODUCTION DEPARTMENT

Remodelling the time of work to adjust the production schedule to recover

from power shut downs

Creating awareness among the workers that modernization will not be a

problem in their employment but only increase the standard of the company.

Reasons that cause strikes and lock outs can be identified and prevented.

Where there is a possibility of installing machinery which will have a dramatic

improvement in the production, the company should not hesitate to install that.

Production should be based on the demand and to steps to be taken to

ensure there is a demand always for the product.

In due course of time, all the spare parts of the product can be made to

produce within the same company so that it reduces the cost of the product

and henceforth the price of the product.

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4.3.3 MATERIALS DEPARTMENT

In the near future, all the spare parts of the product can be made to produce

within the same company so that it reduces the cost of the product and

henceforth the price of the product

Since there is a high price volatility, the company should make sure that the

raw materials are produced within the unit which can improve the production

also.

The production should be based on the demand which will prevent the

unnecessary stacking of the goods or the raw materials

The materials storage should be improved so as to ensure the product is

always in good quality

4.3.4 MARKETING & SALES DEPARTMENT

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Competition cannot be controlled but can be overcome by altering the

strategy of sales, modification in the production and by attractive

advertisements.

Recession is also not in the hands of the company, but can be prepared to

face the situation

Price is the major deciding factor for sales, so that the factors needed to

reduce the price should be created, like home raw material production

There is a good opportunity if it links with textile major like LMW with which

the products can be sold along with them as a default.

4.3.5 QUALITY DEPARTMENT

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The storage facility should be improved to ensure the product in the storage

doesn’t lose its quality

The problem related to humane errors should be reduced since it will be

observed only in the industry where its installed

This will create negative impact on the company, which has been scoring

higher grades in all its aspects, during these years.

Supervision should be very strict to ensure there is no leakage in his work.

The rules inside the industry should be properly maintained and the lines in

the industry for separation of the blocks should not be crossed unnecessarily.

4.3.6 SYSTEMS DEPARTMENT

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The company should use the updated softwares so as to ensure that they are

going in the advanced technical knowledge than its counterparts.

The operating system should also be upgraded at least to windows me so that

it can support the new softwares.

All the employees should study the work in the system so that they get

improved in their knowledge and can replace another worker incharf\ge of the

system in his absence.

4.4 CONCLUSION

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In-plant training is one of the major components to understand the entire

procedure and process of any function. The in plant training is an essential academic

requirements of management students. The industrial training that have under went

in the ELGI has enriched my knowledge how far the management activities and

protocols has been followed in the organization and also about the

manufacturing process and operations held the company. ELGI currently the Market

Leader in India has unique feature in all its activities and is the only manufacturer in

India offering comprehensive range of Textile and Motor products. Thus the training

in this company throws light on the practical aspects of Company activities and

enables to have first hand information relating to the functioning of a company.

BIBLIOGRAPHY

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Company manuals

www.elgielectric.com

www.saraelgi.com

www.en.wikipedia.com