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TRANSCRIPT
INTRODUCTION
The MBA course offered by the Kannur University, Kerala, has its own unique
syllabus which requires its MBA students to undertake an internship with any of the leading
business houses for a period of one month during the Third semester. For the purpose of
acquiring practical knowledge of the working and functioning of a company, Kannur
University has incorporated an in plant training into its Business Management schedule. This
in plant training shows us how the different departments in an organization work and wins as
a single unit. For the same I choose an organizational study in Kerala Electrical and Allied
Engineering Company Ltd. Mamala. KEL is one among the largest, most vibrant, and
productive Public Sector Undertaking, and is fully owned by the Government of Kerala. A
multi-product engineering company, consistently catering to an envious client base, ranging
from the army and air force of India to world-renowned space research organizations, highly
competent engineering companies to mammoth institutions likes the Indian Railways.
The study is mainly focused on the organizational structure and functions of different
department’s of KEL and the overall organizational climate of KEL management.
Management is a critical function in any business that is responsible for the utilization of
resources through proper planning, directing and supervision. Training and learning in a class
room will make an individual knowledgeable in theory of the various functions of a
company. But a person comes out from class room and visits various industries, in this
situation he can learn more from them. In such a situation real experience in the practical
functioning and operations of a company can be of very much use to the students of
management studies.
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INDUSTRY PROFILE
Heavy Electrical Industry covers power generation, transmission,
distribution and utilization equipments. These include turbo generators, boilers, various types
of turbines, transformers, switchgears and other allied items. Majority of the products
manufactured by heavy electrical industry in the country, which includes items like
transformers, switchgears etc. are used by all sectors of the Indian economy. Some major
areas where these are used are the multi core projects for power generation including nuclear
power stations, petrochemical complexes, chemical plants, integrated steel plants, non-
ferrous metal units, etc. A transformer is a device that transfers electrical energy from one
circuit to another through a shared magnetic field. A changing current in the first circuit (the
primary) creates a changing magnetic field; in turn, this magnetic field induces a voltage in
the second circuit (the secondary). By adding a load to the secondary circuit, one can make
current flow in the transformer, thus transferring energy from one circuit to the other. The
secondary induced voltage is scaled from the primary by a factor ideally equal to the ratio of
the number of turns of wire in their respective windings.
A key application of transformers is to reduce the current before transmitting
electrical energy over long distances through wires. By transforming electrical power to a
high-voltage, low current form for transmission and back again afterwards, the transformer
allows electricity to be transmitted more efficiently, enabling the economic transmission of
power over long distances. Consequently, transformers have shaped the electricity supply
industry, permitting generation to be located remotely from points of demand. All but a
fraction of the world’s electrical power has passed through a series of transformers by the
time it reaches the consumer.
Transformer are some of the most efficient electrical ‘machines’, with some large
units able to transfer 99.75 % of their input power to their output. Transformers come in
arrange of sizes from a thumbnail-sized coupling transformer hidden inside a stage
microphone to huge giga volt-ampere-rated units used to interconnect portions of national
power grids. All operate with the same basic principles, though a variety of designs exist to
perform specialized roles throughout home and industry.
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Transformer industry in global
A transformer is a voltage changer. The transformer industry is usually
divided into distribution transformers, power transformers and other types of special
transformers for welding, traction, furnace etc. The power transformers are used to transform
power voltage from the generation point to the transmission point. A distribution transformer
issued to transform power voltage from transmission point to distribution of power to the end
user. The health of the transformer industry is closely related to the power generation sector.
Productivity in the transformer industry increased industry increased at an
average annual rate of 2,4 percent from 1963 to 1979 about the same as the 2.5 percent-rate
shown by all manufacturing establishments. The growth in productivity in the transformer
industry was the result of output gains averaging 3.7 percent and advances in employee-
hours, averaging 1.3 percent.
This growth occurred because of many factors, most importantly the change to a
straight-line production process incorporating assembly line techniques because of the
expanding use of computers. Another reason for the rise in productivity was a rapid increase
in capital expenditures per employee in the mid 1960. These purchases of new plant and
equipment, coupled with output growth, produced operating efficiencies. The long term
productivity trend can be broken into two distinct periods; from 1963 to 1972, productivity
increased an average of 3.8 percent from 1972. As productivity grew in the transformer
industry from 1963 to 1972, output per employee-hour for all manufacturing increased too,
but at only a 2.3 percentage. Output in the industry showed gains averaging 7.7 percent
annually; but employees-hours advanced only 3.7 %. Short term changes in productivity are
frequently linked to changes in output levels. Very large increases in transformer industry
output occurred in 1964 (13.7 %) and 1965 (18 %). These jumps in output were associated
with large gains in productivity, 8.6 and 9 percent. Output rose every year during 1963-72,
and productivity fell only twice. There were several reasons for this rapid output growth.
Demand from electric utilities grew because they were making extensive additions to their
generating capacities, requiring more transformers.
Power companies, also increasing demand for transformers. Installed
generating capacity in the United States increased 83 percent between 1963 and 1972; and
additions to this capacity raised an average of 9.3 percent a year. Overall economic growth
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aided transformer markets during this period. For example, distribution transformers were
increasingly needed, as new electrical lines were extended into undeveloped neighborhoods
permits for housing were issued at a rate of 4.8 percent annually from 1963 to 1972.
Transformer industry in India
Power is a critical infrastructure on which the socio-economic development
of the country depends. Recognizing that electricity is one of the key drivers for rapid
economic growth and poverty alleviation, after independence, the Indian government decided
to bring all new power generation, transmission and distribution in rural and urban centres
( which were not served by private utilities) under the purview of State and Central
government agencies. Accordingly, State Electricity Boards (SEBs) were formed in all
states. The Central Government has been giving priority to this sector while fixing plan
outlays. Commencing with fifth plan (1974-79), the government increased its direct role in
the generation and bulk transmission of power to supplement the efforts of the states. This
was done by establishing large power projects, as part of public sector units (PSUs) to
develop the coal and hydroelectric resources in the country. Today, the plus and SEBs have
been responsible for establishing networks covering the entire length and breadth of the
country. India has been increased its installed power capacity from 1362MW at
independence to cover 100,000MW and electrification of more than 500,000 villages.
However, it is a matter of concern that the annual per capita consumption of India, at about
350kWh is among the lowest in the world. The Government of India has thus launched the
“Power for all by 2012” program which targets adding about 100,000 MW of power
generation capacity by 2012. The total transformer capacity in India stood at about 759,240
MVA at the end of 2003-04.
Of these, the step-up and step-down transformers together account for 73%.
The remaining 27% are distribution transformers at the 33kV and 11/22kV capacity levels.
The 11kV transformer capacity is close to double that of 33kV capacity level.
The health of the transformer industry is closely related to the power generation sector. The
major consumers for transformers are the SEBs, utilities and industries. The transformer
industry in India has evolved and now has a well matured technology base up to 800KV
class. India has a field-proven technology and capacity to manufacture a wide range of
power transformers, distribution transformers and other types of special transformers for
welding, traction, furnace etc. Today, about 95 % of the transformers installed, in the Indian
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Power Network are of indigenous origin. Energy efficient transformer with low losses and
low noise levels can be available to meet international requirements.
The Indian transmission sector has evolved over time mainly on account of
improvements in technology and systems. The transmission and distribution system today
consists of 400KV networks that support state transmission systems; 66Kv, 33kV and 22kV
networks that act as sub-transmission systems; 1 kV networks that provide the primary
distribution systems and 400/230 V networks for local distribution. At the transition between
themselves, transformers are required to ensure a smooth change of voltages with minimum
loss of energy.
Major players in India
The transformer market in India is largely unorganized with very few
organized players. The key organized players in this segment are
ABB
BHEL
BHARATH BIJLEE
EMCO
VIJAY ELECTRICALS
CROMPTON CREAVERS
AREVA T AND D INDIA
INDO TECH TRANSFORMERS
VOLTAMP TRANSFORMERS LIMITED
Transformer industry in Kerala
The health of the transformer industry in Kerala is closely related to its power
generation sector. Transformer industry in Kerala has evolved and now has a well matured
technology base upto 800 kV class. Electricity is required for both development of industries
and for the increasing standard of living. Modern industries are huge consumers of electricity
and nowadays the homely consumption of electricity also increases. Thereby need for
transformers serve as a booster in the supply of electricity given the government focus on
providing electricity to rural areas, the power distribution system has been extended to reach
remote villages.
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The impending changes in the sector would have varying impact on various power
equipment manufacturers namely T and D equipment suppliers and generation equipment
suppliers. Also, with the thrust on quality there exist possibilities for demand to shift from
unorganized to organized players. Transformers usually have a life of 20-30 years. Hence,
those transformers which were installed during 1970’s/1980’s are likely to be replaced in the
next few years. The total transformer capacity in Kerala stood at about 759,240 MVA at the
end of 2003-04. It has been increased after that.
Major players in Kerala
INTRANS, ERNAKULAM
TELK, ANGAMALI.
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COMPANY PROFILE
Public enterprises today occupy an important role in the economies of
developing countries in a mixed economy ideally. Both the private sector and the public
sector should formally go one another and operate as integral parts of one and the same
organism to optimize growth. The state intervention of an active kind has become a cardinal
feature of the Indian economy since the mid 1950’s. The Government committed itself to the
development planning and target oriented growth with regard to industrialization and social
welfare.
In the process of economic development, Indian planners have accorded high
priority to the development of certain basic and heavy industries. To achieve this target, the
state has taken the direct responsibility of establishing and operating such industries. The
public sector thus forms a strong industrial base of our country.
Kerala is one of the smallest states in India with a high density of population . The
limited area available for the production of food grains and overwhelming population makes
it difficult for the state to be self sufficient in meeting the food requirements of the people.
The solution of these problems lies in intensive agriculture and rapid industrialization. The
Government realized the need for creating more and more employment opportunities through
planned industrialization in pursuance of this policy Government started industries in the
public sector.
Public Sector Undertaking in Kerala comprises of 72 units which includes 10
chemical, 5 Electrical Equipment ,5 Ceramics and Refractoriness, 9 Engineers ,10
Textiles ,10 Electronics ,5 Agro and Wood Based ,5 Development and Infrastructure and 13
Traditional and Welfare Industries under the administrative control of industries department.
Along the electrical equipment under the Department of Industries in Kerala KEL made an
amazing turn around during the year 2006-2007.The half yearly results for this financial year
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shows that the Public Sector Undertaking including (KEL) have continued to register the
industry on growth.
The Kerala Electrical And Allied Engineering Company Limited was established
in 1964 in the State of Kerala, India. It is fully owned by the State government .the company
has progressively expanded its range of manufactured goods and services over the years and
has strategically broadened its customer base on a global scale.KEL offers to its customers
world wide a comprehensive array of goods and services through its various manufacturing
units and service division. With a manpower base of 1200 which includes 250 highly
qualified and well trained professional Engineers, KEL is one of the biggest public sector
companies in the state.
KEL has a vital share in manufacturing the distribution transformers in the market
since 1964 .All the manufacturing units of KEL has ISO 9001: 2000 standards. Electricity is
considered to be an inevitable factor in the modern world .Kerala faces a huge power crisis.
The main cause for this is the production cost , loss of transmission etc. With the loss of
transmission people face low voltage problems. Thus , the distribution transformer helps to
improve the voltage capacities in electicity distribution. The KEL produces these distribution
transformers for various electricity board all over India.KEL has 78% market in Kerala
alone.KEL facilitates the modern technology for producing quality transformers with foreign
collaboration.
Kerala Electrical and Allied Engineering Company Limited was established in
1964 in Kerala and fully owned by state Government. KEL is one of the biggest public
sector companies in the state. The company was engaged in multi furious activities. KEL has
five manufacturing units located in various districts of the state at Kollam, Palakkad,
Ernakulam, Kasargod and Malappuram. The company has a man power of 1000, including
more than 200 highly qualified and well trained professional engineers. Products are supplied
to various Electricity Boards, Defense departments/establishments and Indian Railways.
The corporate office of the KEL is situated at Panambilly Nagar , Cochin. The
company has a wide range of regional offices and service centers located in most of the major
cities and business centers in India for effective marketing and to provide efficient after sales
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service for the product. The major regional offices and service centers are at New Delhi ,
Mumbai ,Chennai , Bangalore , Hyderabad , Cochin and Trivandrum.
The primary interest of the company is in the field of electrical equipment and
machinery encompassing areas such as generation, transmission, distribution and utilization
of electric power . In the generating equipment side , KEL is a leading manufacturer of
inducted type brushless alternators used for train lighting and air conditioning . In the field of
transmission and distribution of electric power , the companies effort have been directed in
the manufacturing of transformers , switch gears , transmission line towers , substations
equipment and accessories .KEL is a leading manufacturer and supplier of these items to
various State Electricity Boards in India.
KEL is also an experienced and competent in the erection, commissioning and
maintenance of electrical power transmission and distribution networks which includes H.T,
L.T substations, both indoor and outdoor type , package unitized substations , overhead
transmission lines and pylons , booster stations and street lights etc.
The company has adopted modern technologies in association with reputed
overseas manufacturers who are experts in this field. The technical collaboration with EVR of
FRANCE (now amalgamated with ALSTHOM ATLANTIQUE ) for manufacturing of
inductor type brushless alternators , UNELEC of FRANCE for the manufacturing of HRC
Fuses and MOTEURS LEROY SOMER of FRANCE for the manufacturing of brushless AC
generators.
The Mamala unit was established in 1968 and has received ISO 9001 certification by SGS.
Mamala unit has got two divisions namely
The KEL , Mamala Unit has 2 Production Units :
TRANSFORMER DIVISION
STRUCTURAL DIVISION
Transformer division
This division is engaged in the large scale production of distribution
transformers. The transformer division came into existence in 1968. This division
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manufactures Medium Power Transformers and Distribution Transformers of ratings up to
3000 KVA class. This division has been approved by the National Test House, various state
electricity boards and Power Corporations in the country. This division has an annual
capacity of 60000 KVA.
The dual ratio transformer developed by the division turned out to bring
about desired result. As it is highly adaptable to the interchangeable voltage, the equipment
has found ready acceptance in the market. Unitized substation is another product involved
by this division and translated into a roaring success. Integrated and self contained unitized
substation saves in terms of space, cabling and installation expenses. The transformers
manufacturing by this division came out with more special and unique features. Load tap
charger control cubicle is yet another example for this. Incorporation of these features has
ensured a steady secondary voltage supply. Voltage fluctuation need not become a matter
and any voltage drop upto 35% are easily taken cared off by these transformers which are
equipped with OLTC that too with different tap ratios.
The innovative ideas from the transformer division are backed up by a
resourceful R and D team. The relentless pursuit for perfection and uncompromising quality
consciousness has been made suitably rewarded by recognition and approval of the center
power research institute for KEL transformers.
Structural division
The structural fabrication shop was set up in 1967 with an installed
capacity of 1200MT per annum. This division is mainly engaged in the production of radial
gates for dams. The main product handled by the division, which caters to the heavy
fabrication sectors are
a) Hydraulic control gates and hoist for power generation and/irrigation projects of the
state electricity boards and state irrigation departments etc
b) Industrial building structural, transmission towers, switch yard structures etc.
c) Pressure vessels, process equipments, storage tanks and piping etc.
The division has a team of qualified engineers, technicians and other staff with
adequate experience in designing and fabrication. The division is able to take up fabrication
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work of any kind to set standards as it is equipped with highly sophisticated machines. There
is a centralized planning and quality assurance department directly reporting to the unit head.
The division was also able to capture the goodwill of many state
undertakings due to timely and satisfactory execution of a number of projects involving
hydro mechanical equipments. It is also bagged to prestigious tenders floated by the
Karnataka Power Corporation Limited against stiff competition from global tenders.
Design, fabrication and erection of number of projects like hydraulic control and gates hoists,
penstock pipes, gantry cranes have been successfully taken up on a turnkey basis.
Storage tanks, pressure vessels and industrial buildings are the other areas in
which the division has a good track record. Fertilizers and Travancore Chemicals Limited ,
Hindustan Insecticide Limited, Traco Cables Limited are among major industial undertakings
taken up by this division.
It has also fabricated and erected towers for the Kerala SEB, Southern Railway and
Doordharshan.
Quality system
To achieve customer satisfaction by providing the right product and service at the
right time, every time as per customer’s requirements.
Product range
a) Inductor type brushless alternator for train lighting and air conditioning- 1KW to
40KW.
b) 12KW alternators specially designed for powering Janashatabdi Express Trains of
Indian Railways.
c) Inductor type brushless alternator for automobiles and for charging systems in
diesel engines- 12V, 24V up to 50 A.
d) High frequency alternator- 400 Hz,up to 50A
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e) Ground power units for starting Avro and Dorner aircrafts and for powering
Boeing aircrafts.
f) Ground support units with dual voltage system for starting fighter aircrafts.
g) DC, AC power frequency and high frequency power pack for missile firing
auxiliary power support.
Vision
To be a globally recognised enterprise committed to enhance stakeholders value by
providing world class engineer and power system solutions.
Mission
To achieve our vision by :
Applying state-of- the art technological processes and innovative solutions.
Building long term relationship with stakeholders in an environment of fair business
ethics and values.
Creating value through sustainable and profitable growth.
Leveraging productivity through highly motivated and enpowered team.
Competitors
In the national level main competitors for KEL transformers are Kirlosker Bange ,
Info Tech Chennai and Crompton Greaves Chennai. In the state level Intrans Ernak is the
main competitors for KEL transformers.
Market Potential
In all India level KEL will be contributed to 2% need when its production is 100%.
In the Kerala level KEL’s market potentiality is around 35-40% of the market requirement.
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Main projects done by KEL
Project Name Client Nature of work
Falcon Missile Project R&DE (Engrs.), PuneVehicle mounted 62.5 kVA, 415 V, 50 Hz, 3-phase DG set
Thrisul Missile Project DRDO50 kVA Dual Output DG Set
Prithvi Missile Project R&DE (Engrs.), Pune2 kW, 3000 rpm DG set
Pinaka Project L&T 8 / 12 kW, 30 V, 400 A Alternator
Akash Missile System BEL75 kVA, 220 V, 400 Hz Battery Power Source Vehicle
Military Power Car Army Battery Chargers of Battle Tanks
General Air Force
20 kVA, 415 V, 50 Hz,phase alternators
General Army 30 kVA, 220 V, 50 Hz, 3-phase alternators
General Air Force 125 kVA, 415 V, 50 Hz, 3-phase alternators
Radar Application Air Force 100 kVA, 220 V, 400 Hz, 3-phase alternators
Radar Application Air Force250 kVA, 400 V, 50 Hz, 3-
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phase alternators
Power Cars of Rajdhani & Shatabdi Express Trains
Indian Railways 500 kVA, 750 V and 250 kVA, 750 V alternators
Ground Power Unit Defence 70 kVA Trolley mounted Ground Power Unit
Ground Power Unit Airlines 75 kVA, 400 Hz Ground Power Unit for Boeing 737
Antartica Expedition Indian Navy10 kW, 400 Hz, alternator
Traction Alternator BHEL / Railways200 kW Traction Alternator
Medium Power TransformerNuclear Power Corporaton, Kudankulam, Tamil Nadu
3000 kVA, 11/6.3 KV Transformer
Medium Power TransformerTranvancore Titanium Products Ltd., Kerala
2000 kVA, 11/ 0.433 V OLTC Transformer
Unitised Sub-station Guruvayoor Dewasom160 kVA, Drytype packaged Sub-station
Gerusappa Dam, Karnataka KPCLHydro-mechanical works – Penstock, stoplog gate, gantry crane, hoist
Upper Tunga, Karanataka KNNLRadial gates, rope drum hoists, stoplog gate, gantry crane
Mansi Wakal, Udaipur, Rajasthan
ITD Cementation Radial gates, vertical gates, stoplog gate, hoists
Narmada Project, Gujarat J P AssociatesSlide gates
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Board of Directors
Sri.K.S. Srinivas, I.A.S(Chairman KEL)Additional Secretary Industries (IP) DepartmentSecretariatThiruvananthapuram.
Cdr.(Retd) K. ShamsuddinManaging DirectorKerala Electrical & Allied Engg. Co. Ltd. 7th Floor, KSHB Office ComplexPanampilly NagarKochi - 682 036.
Sri.M.Chandra DasJoint Secretary to GovernmentFinance DepartmentSecretariatThiruvananthapuram
Sri.T.P. Premchand Chief Engineer (Mechanical)Water Resources DepartmentThiruvananthapuram.
Sri.T.P.VivekanandanMember (Generation)Kerala State Electricity BoardVydyuthi Bhavan, Pattom,Thiruvananthapuram - 695004.
Sri.P.I.IttoopSreyas – 6/1090, Aravind Ghosh RoadKozhikkode.
Sri.V.C.RamachandranVidhuvan Veedu, Thrippallur P.OPuthiyangamAlathur.
Sri.M.PoklanAdott, Ajanoor POKanhangad.
Sri.Venjaramoodu SasiEdavilakath VeeduVayyettumukkuVenjaramood POThiruvananthapuram..
Dr.Santhosh Koshy ThomasThundathil, T.C.4/336ARA-31, Near Ambala NagarKuravankonam, Kaudiar P.O.Thiruvananthapuram – 695 003.
Sri.Selvaraj SreedharBlock Panchayath MemberVazhakkulamMoovattupuzha
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OBJECTIVES OF THE STUDY
Primary objectives
To gain an in depth knowledge about the entire organization and to get a clear view about the
day to day functioning of the organization thereby understanding the real working
environment
Secondary objectives
To study about the functioning of each department of the firm.
To identify the theory and practical differences in the processes of an organization.
To know and understand how the management of this company makes use of the
management tool, concepts, theories and its principles in practical environment of an
organization.
To study the fractional integrity and interdependence of different department in the
firm.
To conduct a thorough study about the various strengths, weaknesses, opportunities
and threats of the organization.
To understand the back ground, present structure and future prospectus of the
organization.
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METHODOLOGY
Methodology is defined as ‘the analysis of the principles of method, rules and
postulates employed by a discipline.’ Rather it refers to the rational and physiological
assumptions that underline a particular study. Methodology includes the following
concepts.
A collection of theories, concepts or ideas.
Comparative study of different approaches.
Area of the study
The area of the present study is to analyze the organizational and departmental
functions of Kerala Electrical and Allied Engineering Co. Ltd.
Types of data collected
The two types of data collected for the study are
1. Primary data:
It is the first hand information collected by the researcher himself, which is having
an original character.
2. Secondary data:
It is the data compiled by some other person, which is in the shape of finished
products.
The methodology adopted for organizational study is to collect the information
from primary and secondary data.
The primary data has been collected through the following methods.
1. Observation method:
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Observation is the method of acquiring the use of sense organs. The process
and techniques used in the organization where studied using direct
observations and the points where note down.
2. Personal interview:
It is a verbal method of securing data. Here the information is obtained by
conversing with the respondents. Information regarding each department is
collected by conducting interviews with concerned managers and other skilled
staffs in the respective departments.
The secondary data has been collected through the following methods.
1. Company profile:
Information about the company’s various manufacturing units; product range,
quality standards, projects undertaken by the company etc. are collected from
the profile of the organization.
2. Manuals:
Various functions, number of employees and responsibilities of each
department has been secured from the departmental manuals.
3. Web site:
The company’s official website www.kelindia.com has been useful for
collecting additional information.
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DEPARTMENTAL STUDY
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PERSONNEL AND ADMINISTRATION DEPARTMENT
Personal department is mainly concerned with procurement and development of
personal for the attainment of organizational goal. There are numerous personal functions in
an organization.
RECRUITMENT
Recruitment is the process of searching for prospective employees and stimulating them to
apply for jobs in the organization. For this, the company has adopted different methods of
recruitment process. KEL has adopted the Centralized Recruitment System. The recruitment
and selection proceedings are conducted at the head office of the company. This method
provides certain advantages to the company.
The main advantages are:
1. It ensures effective and suitable placement to candidates.
2. The cost of recruitment per candidate is low because of large number of persons
recruited.
3. The various units’ managers do not bother about the recruitment. So they are able
to concentrate on their jobs.
4. The service of experts will be available for recruitment.
The Company has different methods of recruitment. The main sources of personnel are:
Advertisement
The major recruitment is done through the advertisements. The advertisements are given in
local or national press, trade or professional journals. The recruitments of the job are given in
the advertisements. The flood of application enables to select a right candidate. The manager
and other office staffs are selected through the advertisement. The skilled professionals are
selected through advertisement and interviews.
Employment exchange
The company has recruited employees through the employment exchange mainly the
apprentice can be selected through this method. The vacancies may be notified with the
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exchanges, whenever there is a need. The exchange supplies a list of candidates fulfilling the
required qualifications. Exchanges are suitable source of recruitment for filling unskilled,
semi-skilled, skilled and operative posts. The security staffs are recruited through Public
Service Commission.
Trade unions
The KEL Mamala has also recruited the employees and staff through the mutual agreement
between Trade Unions and management. There are three recognized Unions in KEL Mamala.
They are the KEL employees Congress, KEL Employees Union.
Transfer
Transfer involves shifting of persons from present job to other similar place or different
places in the same jobs. These do not involve in any change in rank, responsibility and
prestige. The numbers of persons do not increase with transfer but vacant post may be
attended to. Transfer of employees based on agreement between management and trade
union.
Promotion
Promotion refers to shifting of persons to positions carrying better prestige, higher
responsibility and more salaries. The higher positions falling vacant may be filled up from
within the organization. A promotion does not increase the number of persons in an
organization. A person going to a higher position will vacate his present position. Promotion
avenues motivate employees to improve their performance so that they get promotion to
higher positions. The promotion is purely based upon the basis of performance, qualifications
and experience. Seniority is a factor which is inevitable in promotion.
Selection and Training.
The head office of the company selects the right person from the advertisement. Based on
the advertisements a number of applications are collected and evaluated. The criterion for
evaluation is performance, experience and qualification of the candidates. After that the
interview is conducted. On the basis of result of interview, the selection board decides who
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will be selected to the company. Only trained or experienced persons are selected for the
requirements of the organization.
Transfer and promotion.
The selected staff can be transferred to the different units, where the staff is needed. The
transfer and the promotion order come from the head office. Transfer and promotion are done
on the basis of the agreements between the union and management. Transfer and promotion
will be made against the vacant posts whenever suitable candidates with prescribed
qualification and experience are available. Promotion will be effected only to the next higher
post. When suitable candidates are not available within a particular division to fill up higher
posts in the same division, then the post will be filled up from external source. While offering
promotions to higher posts, reservations are made for SC/ST
PUNISHMENT ON MISCONDUCT.
An employee guilty of misconduct may be awarded only one of the following punishment
depending on the gravity of the misconduct.
a. Warning in writing
b. Stoppage of increment
c. Reduction in rank
d. Discharge from service
e. Dismissal
The following shall be the procedure for punishment:
A charge sheet will be given to the employee concerned and he will be asked to give his
explanation, in the case the alleged misconduct prima facie appear to be of serious nature,
suspension pending enquiry. In other cases the management will decide whether a formal
enquiry should be conducted and if the decision is for an enquiry authority or in cases where
an enquiry is ordered may on the receipt of explanation, issue notice to the employee to show
cause why a specific punishment should not be meted out to him. On receipt or in the absence
of the reply or the expiry of the date by which the reply I called for, the management will
pass suitable orders.
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This procedure will be applicable only in case were punishment are either reduction in rank,
removal or dismissal. In other cases, the management shall pass orders which may be
appropriate on receipt of the employee explanation.
MANPOWER
The company has 106 skilled workers, 146 unskilled workers; staff and security are 42 on the
date of 31st march 2007
The company’s statistical details of manpower are given below:
Sl
No.
Particulars Transformer
division
Structural
division
General Total
1 GD/DGM/WM 2 2 2 7
2 MANAGERS/A.M 9 7 5 21
3 EXECUTIVES - - 2 2
4 ENGINEERS 4 4 6 14
5 A.E/FM/JO/AO/APO 8 8 7 23
6 STAFF/SECURITY - - 42 42
7 SKILLED 51 54 1 106
8 UNSKILLED 89 47 10 146
TOTAL 164 122 75 361
EMPLOYEE BENEFIT
The company has provided some kind of benefits to the employees. The main benefits are
discussed:
1) KEL employee Welfare Fund Scheme
1. Short title and commencement:
This scheme will be called KEL Employees Welfare Fund Scheme, 1996. This
scheme will be in suppression of the KEL Employees Welfare Fund, 1997 and all
the members of the above scheme as on 31-03-1996 will continue.
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2. These regulations shall apply to all permanent employees who opt to the scheme
as per the rule of the scheme.
3. Object
The fund will be generally utilized for the welfare of the employees who are the
members of the fund committee. The fund will also be utilized for community
development activities
4. Fund constitute under the scheme by contribution from the members and by the
management and such other sources for the welfare of the members.
5. Contribution of the fund:
a. All existing members will contribute Rs: 100/- as a onetime payment. Any
employee, who joins this scheme in future, will also pay Rs: 100/- as a
membership fee.
b. All members will contribute Rs: 10/- per month or as decided amount from
time to time towards the fund.
c. Donation and grants may be accepted, if forthcoming to this fund.
d. If any defaulted contribution is due from a member such arrears shall be
recovered from money’s payable to him.
6. Administration of fund:
A committee has convened the fund process. This committee consists of one
respective of management who is the member of the Welfare Fund and the
representatives from the trade union. The Trade unions nominate their
representative to the Welfare fund in accordance to the situation. The committee
has a chairman: who is the General Manager of KEL Mamala Unit. An executive
of personal department will be Ex-officio secretary of the committee. One of the
nominees of the trade union will be Treasure of the committee.
The welfare fund committee shall make arrangement for actuarial valuation of the
fund once in three years and re-fix benefits from time to time.
7. The committee will ordinarily meet once in a month or on the request of the
majority of committee members giving a notice period of 7 days or in the case of
emergencies.
8. All money pertaining to the fund shall be deposited in a Nationalized Bank or
KEL co-operative Credit Society as decided by the committee from time to time.
The fund operated by the chairman and the Treasurer. In the absence of the
chairman, the nominee of the management should take part in operation of fund.
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9. The accounts of the fund for every year shall be audited by such auditors
appointed by the committee and published for information to the members before
expiry of three months from the loss of the final year.
10. Benefits:
a. Personal Loan:
Upto Rs: 1000/- shall be sanctioned by the Ex-officio secretary to those
members who have no dues in respect of previous personal lean account. This will
sanction on Tuesday and Friday.
b. Medical Loan
The employee avail the medical loan in urgently up to Rs: 500/-. The additional
amount of Rs: 2000/- is allowed for hospitalization.
11. Scholarship and awards are allowed subject to the availability of the fund. For
this, the applicant should forward to the Ex-officio secretary and submit the
photocopy with attest or true copy of mark list.
12. Funeral benefit:
In the case of death of spouse, children and parents, an amount of Rs: 200/- shall
be sanctioned as funeral expenses. In the case of death of members, an amount of
Rs: 500/- shall be sanctioned.
13. Marriage Loan:
For marriage of the daughter or the member, loan up to Rs: 5000/- shall be
sanctioned. A service charge of 8% is charged. This will be deducted in 50 equal
installments. This loan will be restricted for marriage for one daughter of the
member at present depending upon availability of fund.
14. Retirement Benefit:
An employee who superannuates or retires voluntarily or retires compulsorily
otherwise than a measure of disciplinary action or invalidated from service during
the period specified below:
Up to 5 years- His contribution and interest @ 12%
5 to 10 years- in addition to Rs:5000/-, Rs. 100/- per year of service after 10
years.-Rs.200/- per annum of service after 15 years.
20 above-in addition to Rs.6500/-, Rs.300/- per year or service after 20 years
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15. Death Benefits:
A lump sum payment of minimum Rs.5000/- will be made to the legal heir of an
employee who dies while in service.
2) LEAVE FACILITY
A permanent employee will be entitled to one month privilege leave for every year of
service cumulative up to 60 days provided, however, that privilege leave will not
accrue during the period of leave availed. Privilege leave will not be available for a
period less than 10 days at a time.
a) Casual leave:
An aggregate number of 14 days casual leave with full pay will be allowed
to an employee during one calendar year.
For periods less than one calendar year of service proportionate casual
leave may be sanctioned.
Casual leave will not be accumulated beyond the end of the calendar year
to which it relates.
b) Festival Holidays:
The employees will be allotted 13 holidays in a calendar year.
3) RETIREMENT BENEFITS
Retirement and Superannuation
Every employee shall, on last day of the month in which he attains the age of 58 years
according to the company retire from the service of the company, unless specifically
regulated otherwise by individual contract.
Retirement benefits:
a) Every employee shall be entitled to the benefit of the company’s contribution
Provided Fund Scheme.
b) Gratuity shall be payable to every employee on termination of his employment
after he has:
1. Rendered continuous service for not less than 5 years.
26
2. For every completed year of service or part thereof the excess of 6 months, the
company shall pay gratuity to an employee at the rate of 15 days wages based
on the rate of wages last drawn by the employee concerned.
3. The amount gratuity payable to an employee shall not exceed 20 months
wages.
4. Notwithstanding anything contained in the sub-rule
a. Above gratuity payable to an employee shall be wholly forfeited if the
service of such employee has been terminated for misconduct.
4) EMPLOYEES STATE INSURANCE(ESI)
The ESI is a contribution scheme, with the employer paying 4.7% of wages and the
employee contributing 1.75% of his wages to the fund. The ESI ACT, 1948 is
applicable only to factories. This scheme covers all employees, including casual
drawing wages below Rs.6500/- per month
5) EMPLOYEES PROVIDENT FUND
The Employee Provident Fund Act, 1952 is aimed at providing social security to the
covered employees. Both the employer and employee pay 12% of his wages. Here,
the wages includes the basic pay and dearness allowance to employee. Withdrawal
from the Provident Fund Scheme is allowed after the employees ceases to work.
Employees are also entitled to various loans and advances from their deposit, subject
to certain guidline in the act.
FUNCTIONS OF PERSONNEL MANAGER
Personnel planning for future.
Procurement of right kind and number of persons
Proper utilization of resources
Organizing by setting up the structure of relationship among jobs, personnel and
physical factors to contribute towards organizational goal.
Achieving the group goal.
Mobilization of talented personnel.
Determination of adequate and equitable compensation of employees.
Ensure smooth running of business, without any grievances.
Provide good working conditions and welfare service to the employees.
Directing and controlling the employees.
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Ensures the growth and development of the company.
SECURITY DEPARTMENT
There is an in house security department in KEL Mamala unit. The security
department is under personnel and administration department and the security head
reports to Manager P&A.
There are nine security staff, of which three are permanent and six are temporary.
The temporary staffs are appointed from the District Sank Board on contract basis.
The contract period is six months.
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FINANCE AND ACCOUNTS DEPARTMENT
The finance department regulates the financial transactions of the company. The company
prepares the profit and loss accounts, Balance sheet, Budgets financial performance
statements, employee cost analysis, etc. for the findings of the operating results, financial
positions, future prospects and other many objects. Statement of operating results derives the
performance of transactions. This reveals the profitability for the concern during the period.
SOURCES AND USES OF DATA
The financial manger of the company collects the fund through the sale of product, from head
office and other sources. The unit manger has a limit to dealing the fund upto 2 lakh. Over the
limit, he needs the permission from the corporate office of the company. Payroll or salary
administration is inevitable factor of the finance department.
The salary administration is conducted in two ways:
a) For employees and clerical staff under the Industrial Dispute Act
b) For managerial staff under Kerala Government Department Rule.
1. For employees and clerical staff under ID ACT
The salary for employees it includes the Basic Pay, Dearness allowance, House Rent
Allowances (H.R.A) , fringe benefits ( attendance allowance/ milk allowances), night
shift allowance, washing allowance, risk allowance, overtime allowance. The net
results of these are known as “gross salary”
Fringe benefits are the allowance which includes the attendance allowance / milk
allowance. It is available to employees based on the agreement between the
management another trade union. The period of agreement is four years. For the
fringe benefits, the attendance is taken from the 16th of the month to 15th of the next
month. Charge of attendance allowance is Rs.2.50/- per day of an employee.
In the calculation of basic pay and D.A, the attendance is taken as the first of the
month to 31st of the month, (i.e. last day of the month). Basic pay is based on the
salary scale of the company.
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D.A is an industrial D.A or variable D.A. it means, DA is changing every month.
These changes depend upon the point allotted by statistical department of the state.
This point differs every month and also is different to different companies and
different units to the same company Rs.5/- per point.
Overtime allowances (O.T) is provided to the employees. Who undertake overtime
work for the calculation of the overtime the attendance is taken as the 16th of the
month to the 15th of the next month. Working time per day is 8 hours.
The overtime charge is calculated as:
Basic pay + D.A. *2*30
30 days * 8 hours
Deductions from the gross salary.
a) Provident Fund (P.F)
According to the P.F Act, 1952, the P.F contribution is deductable from gross
salary, both the employee and the employer paying 12% of his wages (i.e. Basic
pay and D.A) to provident fund. This P.F contribution is forwarded to the P.F
department.
b) Employees State Insurance (E.S.I)
The ESI is a contribution scheme, with the employer paying 4.75% of wages and
the employee contribution is 1.75% of wages of the fund. The ESI facility avail
the employees who has a salary up to 6500/- per month. The employee
contribution is:
1.75% of gross salary- washing allowance.
The next salary for employees and clerical staff by way of deducting the total
deduction from the gross salary . i.e.
Net salary = Gross salary-Total deductions.
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2. For Managerial staff.
The salary scale and D.A is fixed for managerial staff based on Kerala Government
department role. When the government declared certain rate of D.A to managerial
staff; this will be distributed after the recognition of the board of directors. If the
board does not permit to the distribution of the D.A then that D.A will not be
distributed to the managerial staff. Gross salary for managerial staff includes the basic
pay, D.A and HRA. Deductions are made available to managerial staff in the same,
manner to the employees and clerical staff’s calculation.
The net salary is calculated as:
Gross salary- total deductions
ACCOUNTING POLICIES OF THE COMPANY
The following significant accounting policies have been consistently followed by the
company except stated otherwise.
1. Accounting Conventions
The financial statements are prepared under historical cost convention on accrual
basis and in compliance with the Companies Act, 1956.
2. Fixed assets:
Fixed assets are stated as cost less depreciation. Assets and liabilities are
consistently being recorded as historical cost.
3. Depreciation:
a. Depreciation on fixed assets has been provided as per the rate indicated in
schedule xIv of the companies act 1956, under written down value
method.
b. Extra shift depreciation for double shift and triple shift working as been
provided in the accounts.
c. Depreciation on fixed asets in respect to project work-in-prograss has not
been charged in the accounts seems the project has been kept in abeyance
as per government direction.
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4. Inventories:
a. Finished goods are valued at cost or market price, whichever is less. For
arriving at the cost, exercise duty is also taken into consideration.
b. Work-in-progress is valued at cost after considering overheads excluding
financial charges.
c. Raw materials, materials in progress, spares, stores and loose tools are
valued at cost. Cost means weighted average.
d. Scraps are valued at net realizable value.
e. Goods in transit are valued at cost.
5. Sales:
a. Sales comprise sale of goods and services and includes Excise duty.
b. Price variation climes on sales affected are accounted for an accrual basis.
c. The reprocessed transformer oil is accounted at current purchase by
crediting the difference to miscellaneous income.
6. Consumption:
a. Loose tools issued to shop floor are treated as consumed and written off as
such.
b. Consumption of materials for production is completed on a derived basis.
7. Retirement Basis:
Gratuity and leave encashment are accounted on accrual basis in compliance with
accounting standards. The amount was determined on the basis of a actuarial
valuation conducted at the end of the year. As non-cumulative portion of leave
encashment is not applicable to the company the same is not considered.
8. Liability on materials in transit:
The liability on account of bank charges and other expenses on materials in transit
on the date of closing is accounted on accrual basis.
a. Research and Development (R&D)
Capital expenditure on Research and development is treated as addition to
fixed assets and revenue expenditure eon R&D is charged to profit and
loss account under the appropriate heads in the year ion which it is
incurred.
9. Contingent Liabilities.
Contingent liabilities are not provided for, but disclosed in notes on accounts
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The KEL have 40000000 equity shares at the rate of Rs.10/- each. The issued,
subscribed and paid up shares are 34059371. It is fully paid up shares. This
include 6032350 equity shares held by KERALA state Industrial Enterprises Ltd.,
and 317443 equity shares allotted as fully paid up for consideration other than
cash. The balance sheet and profit and loss of the company is shown below.
FUNCTIONS OF A FINANCE MANAGER.
Estimation of capital requirements
Ensuring a fare return to the investors
Make sure the suitable availability of funds
Laying down the optimum and suitable capital structure for the company.
Adequate control of cash flows
Preparation, analysis and interpretation of financial statements.
Facilitate maximum utilized of fund.
33
BALANCE SHEET AS ON 31ST MARCH, 2010
In Rupees In Rupees
SOURCES OF FUNDS
Share Holder’s Funds:
Share Capital 713780770
Reserves & Surplus 36567828
750348598
Loan Funds:
Secured Loans 168603000
Unsecured Loans 298858321
467461321
TOTAL 1217809919
APPLICATION OF FUNDS
Fixed Assets:
Gross Block 265813749
Less: Depreciation 240102114
Net Block 25711635
Add:Project work in progress 61355339
87066974
Investments 50000
Current Assets, Loans and Advances 735589711
Less: Current Liabilities & Provisions 416290027
Net Current Assets 319299684
Profit & Loss Account 811393261
TOTAL 1217809919
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PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2010
Particulars In Rupees
INCOME:
SALES, WORKS CONTRACT, JOB WORKS AND
MISCELLANEOUS INCOME 1056451000
INCREASE/ DECREASE IN STOCKS -18981000
TOTAL 1037470000
EXPENDITURE:
MATERIALS CONSUMED 614007000
INTEREST AND BANK CHARGES 49094000
OTHER EXPENSES 357451602
DEPRECIATION 2949000
TOTAL 1023506002
(LOSS)/PROFIT FOR THE YEAR 13968398
(LOSS)BROUGHT FORWARD FROM LAST YEAR -825361659
(LOSS) TRANSFERRED TO BALANCE SHEET -811393261
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MARKETING DEPARTMENT
The KEL has not adopted general features of marketing. The company will have promotional
strategy or any other kind of promotion to their product. Because, the product segment is
directly connected with the customers, KEL displays advertisements in certain electrical
journals only. They have recognized regional centers in various major cities. It also captures
order through canvassing customers. The company also employees certain outside agencies,
which canvas order.
MARKETING PROCESS
The KEL collects the Tenders from the newspapers with specification. After collecting
tender, KEL prepares tender document. This document will be forwarded to the design
department. The company approves the tender up to 25 Lakhs. Above 25 lakhs, the head
office sanction or approval is required for the tender acceptance.
After this, the unit submits competitive Quotation with company’s favour. If the submitted
quotation is the best, it gets the tender.
Then the company issues an order acceptance letter to the customer. After this, the marketing
department prepare a sale order and issues to all other departments that take part in the
production. Based on this letter, the design department prepares structural design and process
design of transformer. The material department purchase and or issue materials to production
floor or to store. Then the production function is started.
At the end of completion of the production of the transformer, inspection and dispatch
function are carried down. Sometimes, private customers like Tata Tea, Bombay Suburban
Electrical Ltd: Eastern Curry Powder, etc. conduct inspection at the production floor after the
completion of the production. Then the dispatch is carried out with the specification of the
tender. The company also provides after sales services.
The company guarantee the product for a period of 12 months from the date of
commissioning or 18 months from the dispatch whichever is earlier. After this period the
36
company will provide service on chargeable basis. The company charges Rs. 1500/- per head
for a day.
MARKETING NETWORK
KEL’s products are marketed by extensive networks of marketing officials located in all the
major cities like New Delhi, Mumbai, Kolkata. Bangalore etc.
They provide all support services to the sale and marketing service to guarantee complete
customer satisfaction. KEL has a wide network of regional offices, services, and business
centers located in most of the major cities in India for effective marketing and providing
efficient after sales service.
FUNCTIONS OF MARKETING DEPARTMENT
Evolve adequate marketing policy.
Ensures the availability of required orders.
Make competitive prices.
Make sure the payment before dispatching the product
Provide after sales service to the clients.
Ensure the optimum utilization of resources available to the company.
37
DESIGN DEPARTMENT
The design department draws the structural design of the product processes for the production
department. Based on this design the transformer is produced with the specification of the
customers.
DESIGN PROCESS
1. Receipt of tender document from transformer marketing section.
2. Issues of materials with current price from the material section to the design
department.
3. Issue of estimates and technical specifications from the transformer marketing section
to the design department.
4. Receipt of sale order from transformer marketing department.
5. Issue of advanced estimation to production planning.
6. Issue of production drawings, specifications and list of drawings to planning.
7. Feed back of test result from Quality Assurance.
Test is conducted by the customer consultant or representative and based on this
production result design modification, special requirements etc. are made.
8. Design changes intimation to planning department from the design section.
9. Feed back to transformer production section on time to time for manufacturing the
product with the customer specification.
DESIGN POLICY
To establish and maintain a process for an optimum design conforming to customer
requirement and relevant standards within a specified time.
FUNCTIONAL OBJECTIVES
38
Reduction of design errors and rework.
Computerization of the design work at least by 25% and subsequent improvement.
FUNCTIONING OF DESIGN DEPARTMENT
The design department gets tenders from the marketing department. With this tender it makes
an estimate in connection with technical specifications and general arrangements by the
design and marketing department. This estimate has to be approved by the customer. Then
the marketing department issues sale order. Based on this sale order, the design department
makes design and negotiates with customer about the design and makes any modifications if
necessary. After the approval from the customer, a detailed design is made for each segment
of production and materials for each segment. On the basis of that design the production
function commences and at the end the product is despatched.
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MATERIALS AND STORES DEPARTMENT
KEL has a materials and stores department which purchases and stores materials for
production. The materials department ensure that good quality materials are purchased at
reasonable prices. The company has an ideal material control system. KEL follows the ABC
analysis for the control of materials. ‘A’ value materials are purchased against the order, and
‘B’ value materials are also the similar method. But the ‘C’ value materials which require
minimum control is maintained in the minimum stock level.
FUNCTIONS OF STORE DEPARTMENT
Subcontractor’s approval and codification.
Purchase of materials.
Storage and preservation of purchased products.
Ensuring re inspection of stores and products.
Control receipt and issue of materials.
Release of purchase orders.
Prepare monthly inventory statement.
PURCHASE PROCEDURE
Purchases are made from the subcontractors as per the quantity specification.
Purchase activity is initiated against purchase notice from the user departments.
The mode of purchase such as inviting quotations, bid evaluation or direct purchases
is based on the documented purchase department guidelines.
Purchase is authorised by the general manager materials, finance and accounts and
user department’s representatives.
The particulars of purchase committee are maintained in the purchase committee
approval register.
On finalizing the purchases based on the guidelines, purchase order is raised and
purchasing is verified.
Then purchase order checklist is prepared.
40
The purchase order is made in six copies. The copies are available to the finance,
materials and purchase as well as quality assurance department. Three copies are
maintained for documentation purpose.
The purchase order is raised in respect of purchases against already made
authorization.
The verification of purchased product is carried out.
MATERIALS RECIEVING, STORAGE AND PRESERVATION
Store in charge receives copies of purchase orders from materials department.
On receiving the materials against purchase orders, the accompanying documents
such as lorry receipt, invoice, transport copy of invoice etc. are verified by the store
keeper and if satisfied, items are received and entered in the goods receipt register.
Security permits the carriers into the company premises on verification of document
and enters the details in the register.
On receiving the transformer oil in tanker, the store keeper prepares goods received
note (GRN) and passes to the quality assurance. Only after verification by the quality
assurance, the oil is unloaded.
All received items are accounted as per the goods receipt register.
GRN is prepared in 5 copies.
These five copies are sent to the Quality Assurance department.
After inspection only one copy is retained.
Materials received in barrels, carboys, bag, bundles, rolls etc. are handled either
manually or by using cranes.
Oil received in tankers is transferred to storage tanks by pipe lines.
Materials are also stored in sub store areas related to each production sites.
Items held in storage for more than the specified period are subjected to re inspection.
A monthly inventory statement is prepared and sent to planning/production/finance
departments.
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PRODUCTION DEPARTMENT
KEL Mamala has a production department. The subdivisions of this department are planning
section and quality assurance section.
The company has two production unit namely Transformer division and Structural division.
The planning section carries out the fundamental function of planning for production. In this
section planning of each stage of production is done based on the plan order. Plan order is
issued from the marketing and design department.
The materials department provides the materials in connection with sale order from
marketing. Thus production is done in a much planned method. The function of Quality
assurance department is to ensure quality in production process as well as product.
The methods adopted by the quality departments are
1. Receiving Inspection and testing.
2. In process inspection and testing.
3. Final inspection and testing.
4. Calibration.
5. Inspection and test status.
6. Control/review and disposition of non conforming products.
7. Electronic media, document and record control.
8. Application of standard techniques.
In the two production division skilled, semi skilled and unskilled workers are doing the work.
In each division there are three shifts.
They are:
First shift: 12.30 AM to 8.00 AM
General/second shift: 8.00 AM to 4.30 PM
Third shift (night shift): 4.30 PM to 12.30 AM
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The processes of two divisions are briefly explained under.
TRANSFORMER DIVISION:
KEL manufactures distribution transformers and medium power transformers with the
capacity of 3000KVA, 33KV class and with the annual capacity of 600000KVA, there are
nine stages in the transformer manufacturing. In each stage one charged hand control the
activities in that particular stage process.
End frame (fabrication)
In this stage the frame is cut in the shape of ‘E’. Silicon steel is used here.
Insulation and assembly.
Insulation is done in core building, HV winding and LV winding. Insulation
helps to overcome the occurrence of short circuit.
Core building/assembly
The core has been laminated with CRGO lamination. Because of this the core will be
free from any short circuit.
HV winding
Conductors are used for High Voltage coil winding. The conductor is wound or
insulated with double paper grade strip. HV winding produces high voltage. This high
voltage electricity has to be transmitted or distributed.
LV winding
Conductor is used here also. The same procedure for HV winding is followed here.
After the completion of coil winding, core coil assembly is carried out. The core
assembly, HV and LV windings are assembled in this stage.
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TG mounting (terminal gear)
The HV and LV winding terminals are fixed into a bush. The terminal gear is built
with copper/ aluminium.
Oven drying
The windings should be free from moisture. Therefore they are dried at a temperature
of 100 degree Celsius.
Tanking
The windings are placed in the fabrication tank. The transformer oil is filled into it.
Final testing
Voltage tests are carried to the transformer to ensure its proper functioning.
Painting and despatching
The final stage is painting and despatching the transformer. After the payment is made
by the customer, despatching of transformer is done as per the specification of the
tender.
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TRANSFORMER DIVISION PRODUCTION PROCESS CHART
45
CORE BUILDING
INSULATION CUTTING
WINDING
CORE COILASSEMBLY
OVENDRYING
TERMINAL GEAR FIXING
TANKING
OVEN DRYING
TESTING
PAINTING
DESPATCH
STRUCTURAL DIVISION
In this division, there are several machines. In each machine one gang is working. One gang
contains three workers. These three workers are controlled by one charged hand. A gang
involves one welder, one fitter and one unskilled worker.
The machines are listed below:
Gear hobbling machine: Used for gear cutting
Milling machine: Used for cutting
Leith machine: For forming thread
Gillette machine: For cutting metal plates
Press breaker machine: For bending plates
Drilling machine: For drilling the plates
Mig welding: It is used for welding
The structural division holds one manager, product engineer, assistant production engineer,
Forman and charged hand.
MAJOR PRODUCTION PROCESSES
Marking
Marking and drawing on the material for the next steps.
Cutting
Cutting the material as per the marking or drawing on the material.
Drilling
Drilling is done for making holes.
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Grinding
Grinding is done for shaping the material or removing the excess portion.
Bending
Bending the material for required shape.
Setting
Ensuring all the components are as required in the work order and set the components to
make assembly and sub assembly.
Welding
Done for joining the parts together.
Straightening
To straighten the welded parts and bended parts.
Machining
Machining is the process to get good finishing of the parts.
Surface preparation
Cleaning the surface to be painted by using wire brush, cotton waste, chipping hammer etc.
Painting
Applying one coat of primer as specified in the work order, applying two coats of paint.
Keeping
Keeping the painted structure in the finished goods stockyard after making the identification
marks as per drawing.
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FUNCTIONS OF PRODUCTION AND MAINTANENCE DEPARTMENT:
Issue of work order.
Co ordinate release of drawings and bill of materials.
Proper allocation of work.
To check the progress of work.
Ensuring the proper utilisation of resources for achieving the target.
Maintain the quality of product.
Carrying out the preventive and break down maintenance.
Release machines and equipments for use after maintenance.
PRODUCTION INFRASTRUCTURE
The infrastructure needed to design, manufacture and install as per the customer requirements
are provided. Infrastructure includes buildings, machines, testing devices, soft wares and
supporting devices. Preventive maintenance and upkeep of infrastructure is done to ensure
the capability of infrastructure to meet the customer requirements. When a breakdown occurs,
immediate corrective action is taken. All statutory and regulatory requirements regarding
installations and manufacturing are maintained.
WORK ENVIRONMENT
The work environment requirements regarding products to be maintained in the factory are
identified and maintained. Proper training for employees is given. All the basic facilities
including drinking water, rest rooms and sanitations are provided.
PERSONAL SAFETY
Employees working in hazardous activity in factory should use safety gadgets namely
helmet, safety shoes, goggles, apron, gloves etc.
Employees working on roof and structure use safety belts.
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Proper awareness of safety is emphasized.
Visitors when permitted to enter the factory work area are provided with safety
gadgets.
FIRE AND SAFETY
Materials in storage or processes area which are prone to fire are identified
specifically and proper safety measures are taken.
Location wise requirements of fire extinguishers are tabulated and maintained by
P&A dept.
Fire extinguishers are checked at specified intervals and refilled or replaced where
necessary to maintain the fire and safety system operations consistently.
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SWOT ANALYSIS
Strength
KEL consists of highly qualified personnel.
The company has got ISO 9001: 2000 for quality
KEL provides inevitable and valuable service to society.
KEL maintains good industrial relations.
It ensures the quality of products
The company manufactures good products without any
delays
Good infrastructure.
Direct from the government.
All India network service centers.
Weakness
Modern technology and machines are not adopted.
Inadequate control of materials.
The company has not adopted the new method of
accounting.
The company increases the loss year after year.
Opportunity
It has an opportunity to adopt new technology in
production.
Opportunity to adopt new methods of accounting.
The company has an opportunity to buy quality material
and to maintain an effective material control.
Can access help from government.
Wide market in foreign countries.
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Threat
Competition from upcoming private enterprises is the major
threat to the company.
Financial position of the company is unsatisfactory.
Government regulations.
Outdated technology.
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FINDINGS
Profit of the firm is decreasing.
There is no strike in the company.
Gives prime importance to quality.
Healthy employee - employer relation exists in the firm.
Company has a good team of management and technical staff.
KEL offers its customers worldwide comprehensive array of goods and services
through its various divisions.
KEL has a manpower base of about 1000, which include 150 qualified and well
trained professional engineers.
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SUGGESTION
Company should request financial assistance from the government for avoiding
cumulative loss.
The company should be more competitive against private firms.
Should minimize the core loss of current.
Proper target to be set in consultation with the employees.
Proper training should be given to the employees.
Production can be increased by giving incentives which results in more output and
there by more earnings.
Company should adopt new method of accounting.
Company has to adopt new technology in production.
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CONCLUSION
Kerala Electrical and Allied Engineering Company Ltd., being one of the biggest public
limited companies in the state of Kerala, is doing great help to the nation by providing very
important and essential equipment to various industrial concerns and various electricity
boards in India. Company has got ISO 9001:2000 etc. for its excellent functioning. The
experienced group of directors, efficient management team and highly dedicated employees
are the most precious blessings of the company.
The organizational study In KEL, Mamala unit helped me to understand the structure and
functions of the organization. The overall performance of all departments like finance and
accounts, personal and administration, marketing, design, materials and store, production are
functioning professionally and efficiently managed. The joint effort of employees plays a
major role in the development of the organization.
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BIBLIOGRAPHY
Annual Report of KEL
Company website :(www.kelkerala.com)
Department manuals of KEL
Quality manuals KEL
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