kamco project report

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INTRODUCTION

Kerala Agro Machinery Corporation Ltd. (KAMCO) was established in the year

1973 as a wholly owned subsidiary of Kerala Agro Industries Corporation Ltd. (KAIC),

Trivandrum, for manufacture of agricultural machinery specifically Power Tillers and Diesel

Engines. Subsequently KAMCO became a separate Govt. of Kerala undertaking in 1986.

Paid up capital is Rs. 161 lakh and the Present Net Worth of the Company is Rs. 6014.14

lakh. Total work force at present is 567 Certified for ISO 9001 - 2000 version from

September 2002.

At present, KAMCO has four units located at Athani and Kalamassery in Ernakulam District,

at Kanjikode in Palakkad District, and at Mala, in Trichur dist. With the present work force

KAMCO can produce 15000 Power Tillers & 5000 Power Reapers per annum.

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OBJECTIVES OF THE STUDY

Primary objective:-

The primary objective of the study is to have a brief knowledge about the functioning

of the organisation.

Secondary objective:-

To know the organisation structure of the company

To know about various departments and their activities

To evaluate the growth prospects of the company

To conduct an objective evaluation of the company

To suggest some measures for improving the performance of an organisation

To know the functional position of the company

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PERIOD OF STUDY

Duration of the project done in Kerala Agro Machinery Corporation Ltd.

(KAMCO) is one month.

LIMITATION OF THE STUDY

During the course of the company study, the following limitations are incurred.

1. Lack of time to analyze all aspects being a work of one month.

2. Mental activities performed on the job and the knowledge, skill, ability

and other characteristics are not all directly observable.

3. As the company is very wide, the different operation cannot be correctly

analyzed.

4. It has been build upon secondary data, various records and documents of

the office were not easily assessable because of its confidential nature.

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INDUSTRY PROFILE

Agricultural Machinery Industry in India and the farm mechanization of Indian fields

helps in effectiveness utilization of inputs to increase the productivity of land and labour.

Besides it helps in reducing the drudgery farm operations. The early agricultural

mechanization in India was greatly influenced by technological development in England.

Tractors and threshers were gradually introduced for farm mechanization. The high yielding

varieties with assured irrigation and higher rate of application of fertilizers gave higher

returns that enable farmer to adopt mechanization of inputs, especially after green revolution

in 1960’s. The present trend in agriculture mechanization is for high capacity machines

through custom hiring and for contractual field operations.

The manufacture of agricultural machinery in India is quite complex comprising of

village artisans, small scale industries, state agro industrial development corporations and

organized tractor, engine and processing equipment industries. Those industries have adopted

sophisticated production technology and some of them match international standards. Since

cost of production of farm machinery in India is more competitive due to lower labour wages,

the importers from various countries will find Indian farm equipment more attractive. Indian

products however, has made improvements in quality for gaining major export growth

AGRICULTURAL MACHINERY INDUSTRY IN INDIA

The country witnessed unprecedented growth in agriculture which has helped India to

graduate from hunger to self sufficiency in food grains by increasing the food grain

production from 51 million tonnes to 208 million tonnes, with surplus for export. The

technology back-up by agricultural scientists, in the form of “Green Revolution” combined

with industrial growth, positive policy support, liberal public funding for agricultural research

and development and dedicated work of farmers contributed to the phenomenal increase in

agricultural, animal and fish production. Application of engineering in agriculture was

equally appreciated by the farmers and today they feel proud to have improved machinery

from Bakhars to rotavators, Persian wheel to drip and micro-sprinkler systems, cone-dibblers

to pneumatic planters, sickles to combine harvesters, sieve to colour sorters, and, kolhus to

solvent extraction plants, and hand mills to roller flour mills, etc.

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The growth in adoption of agricultural machinery in the country has been possible due

to their local manufacture. The manufacture of agricultural machinery is under taken by

village artisans, tiny units, small scale industries, organized medium and large scale sector.

Organized sectors manufacturing sophisticated machinery such as tractors, engines, milling

and drying equipment, traditional hand tools and bullock drawn implements are largely

fabricated by village craftsman and power operated machinery by small scale industries. An

analysis has been made in this paper to review the status of manufacture of agriculture

machinery, after sale services, level of adoption of mechanization inputs by the farmers so as

to plan for future mechanization.

STATUS OF FARM MECHANIZATION IN INDIA

FARM POWER IN AGRICULTURE

Unit farm power

During early sixties, a concept of farm power availability per hectare basis was used

to indicate level of farm mechanization. The potential power availability was used as

the measure and could not reflect critical constraint of farm power availability during

peak requirements or the actual level of use. Animate power contributed 60% of the

total farm power in 1971-1972 and mechanical and electrical together contributed

only 40%. In 1996-1997 the contribution from animate power reduced to 21 % and

from mechanical and electrical power it increased to 79%. The farm power input per

unit cultivated land in India is still very low compared to South Korea, Japan and

United State of America.

Energy ratio for mechanization indicator

A major defect in considering power in quantifying mechanization is that it does not

reflect the dimension of time and thus does not bring in the actual scenario in focus.

Energy, from this point of view, is a better measure as it can define the actual

quantity under use or, in other words, the potentiality of use of available power

sources in real terms.

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TRENDS IN USE OF FARM POWER

Human power

Draught animal power

Tractive power

TRACTORS

The sale of agricultural tractors and other farm equipment has increased. To-day more

than 250,000 tractors are manufactured every year by 13 manufacturers. These tractors are

available in different horse power ranges of less than 25 to more than 55 horse power.

POWER TILLERS

The production of power tillers started in 1961 with licence to manufacture 12

models. The manufacturers started offering these to farmers in various stages covering upland

and wetland farming conditions. Their introduction coincided with that of agricultural tractors

which were more suitable for upland work and provided more comfortable work environment

to the operators. The walk-behind power tillers, on the other hand, created dusty environment

for the operator.

Secondly, the power tillers in dry land conditions were tiresome which resulted in

longer rest periods, and consequently affected the work output. These were also difficult to

manage in the hilly situations. The power tiller models being manufactured, and also those

being imported from china, etc, and have being marketed for wet land, stationary and haulage

work are being well received by the farmers.

Stationary Power

Electric Motors and Diesel Engines are the primary sources of stationary power for

irrigation, threshing and various post-harvest agro-processing operations.

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A rotary tiller for agriculture

Two-wheel tractor. The higher horse power “riding” rotavators cross out of the home

garden category in to farming category especially in Asia, Africa and South America, capable

of preparing 1 hectare of land in 8-10 hours. These are also known as power tillers, walking

tractors or two-wheel tractors. Years ago they were considered only useful for rice growing

areas, where they are fitted with steel cage-wheels for traction, but now the same are being

used in both wetland and dry land farming all over the world. Compact, powerful and most

importantly inexpensive, these agricultural rotary tillers are providing alternatives to four-

wheel tractor and in the small farmers fields in developing countries are more economical

than four-wheel tractors.

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COMPANY PROFILE

Kerala Agro Machinery Corporation Ltd. (KAMCO) was established in the year

1973 as a wholly owned subsidiary of Kerala Agro Industries Corporation Ltd. (KAIC),

Trivandrum, for manufacture of agricultural machinery specifically Power Tillers and Diesel

Engines. Subsequently KAMCO became a separate Govt. of Kerala undertaking in 1986.

Paid up capital is Rs. 161 lakh Present Net Worth of the Company is Rs. 6014.14 lakh. Total

work force at present is 567 Certified for ISO 9001 - 2000 version from September 2002.

At present, KAMCO has four units located at Athani and Kalamassery in Ernakulam District,

at Kanjikode in Palakkad District, and at Mala, in Trichur dist. With the present work force

KAMCO can produce 15000 Power Tillers & 5000 Power Reapers per annum.

PALAKKAD UNIT:

KAMCO,S third unit was established in 1995, is located in new industrial

development area Kanjikode, the capacity of Palakkad unit is 3600 power tillers and it is

located 15kms away from Palakkad town. The unit covers an area of eleven acres holding

five buildings. The spacious area also enjoys an overview of the gracious Western Ghats in

peaceful atmosphere.

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OBJECTIVES OF THE COMPANY

The objective of the Company is to manufacture in India, either in collaboration with

or otherwise or import & trade agricultural machinery like Tractors, Power Tillers, Power

Reapers, Combine harvester, Transplanted, Diesel Engines, Pump sets, Implements,

accessories and spares thereto. The objectives also include establishment of engineering

workshops/repair shops to undertake repairs and servicing of agricultural machinery or other

machinery, equipment, implements and tools.

Assembly Unit was established in 1970 at Athani by M/s. Kerala Agro Industries

Corporation for the assembly of Kubota Power Tillers in technical collaboration with

M/s.Kubota Ltd., Japan, the world's leading manufacturer of Power Tillers and other

agricultural machinery. On expiry of the collaboration, KAMCO manufactures power tillers

with their own facilities.

KAMCO Power Tillers have become the most sought after Power Tillers in India

because of their quality and reliability.

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ACTIVITIES OF THE COMPANY

KAMCO's manufacturing facilities include Special Purpose Machines, Specially built

General Purpose Machines, and Imported machines. The inspection facilities include modern

inspection & testing equipment .KAMCO has their own Metrology, Calibration & Engine

Test Lab.

The following are the main Activities of the Company.

Manufacturing and Marketing of Agriculture machines like Power Tillers, Tractors,

Power Reaper, Diesel Engines etc.

Power Tiller produced at Athani & Palakkad units. Major components for Power

Tiller are manufactured at Athani and all other components bought out from dedicated

Venders in India. There are around 250 vendors now.

Kalamassery unit produce Engine for Power Tiller

Power Reaper produced at Mala

Trading/manufacturing of other farm machines.

QUALITY SYSTEMS AND CERTIFICATIONS

1. Quality systems

Well defined quality system procedures adopted covering all activities to ensure

quality of products & customer satisfaction

Improvements are made on regular basis based on the feedback from the customers &

dealers

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Regular interactions with all Venders including site visits to maintain and improve the

acceptance level of components

KAMCO Power Tiller certified for compliance with Minimum Performance

Standards of Govt. of India

KAMCO Power Reaper has been tested by SRFMT&TI, Ananthapur of Govt. of India

2. ISO 9001 - 2000 version

Improvement in the systems and improved Customer/Dealer satisfaction

Comply with the requirement of Customers and applicable statutory/regulatory

requirements

Improvement in the effectiveness of the established quality systems

Addresses Customer, Dealer, Vendor, Society, Employees & Share holders - for their

requirement & satisfaction

3. Quality policy

Total customer satisfaction through quality products and services with improved

technology and employee participation.

Comply with the requirements of customers and the applicable statutory / regulatory

requirements. The effectiveness of the established quality management system is

continually improved to enable achievement of the policy.

To ensure that the quality requirements of the products and services offered are

maintained at all stages.

To create a culture among all employees towards total quality concepts and

productivity through total involvement and commitment of all employees.

To create healthy working environment for attainment of quality goals with

excellence and to make quality a way of life

To detect and prevent non conformance and defects as early as possible and to

eliminate them through appropriate changes to the Quality Management System

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To achieve and maintain Quality Leadership through continuous technology up

gradation, improvements in techniques, systems and procedures

4. Quality standards

Quality standards for each and every component and product have been

established by the company and well documented. Vendor’s premises and their

manufacturing facilities are also periodically assessed. All components are subjected

to close inspections and observations are documented to ensure traceability at any

time.

Quality Assurance Department is equipped with all modern facilities. The company

has got a standard room for calibration of all measuring instruments. Fully

documented history cards of the measuring instruments are maintained so that

periodical calibration of equipments is carried out regularly. The company’s policy is

to equip itself with all modern inspection and testing equipments as additions as well

as replacements.

The products are subjected to running tests for a pre-determined duration and only

those which pass the requirements are accepted and declared ready for dispatch.

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PRODUCT PROFILE

KAMCO Power Tiller Model KMB 200

KAMCO Power Reaper Model KR 120

KAMCO AGRIA 602 DE(06) Power Tiller

DETAILS

Power Tiller Model KMB 200

KAMCO Power Tiller is a versatile machine primarily used for preparation of

land for farming operations. With suitably designed accessories the machine can be

used for a large number of specific operations like tilling, ploughing, weeding,

pumping, puddling, levelling, hulling, ridging.

Specifications

Model : Engine: ER 90

Tiller KMB 200

Type : Rotary, diesel-powered,

water-cooled, with radiator

HP : Continuous: 9

Max : 12

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RPM : 2000

Fuel consumption : 1.5 litres per hour

Fuel tank capacity : 10.70 litres

No. of speeds : Forwards : 6

Reverse : 2

Tilling : 4

Wheel track : Maximum : 930 mm

Minimum : 690 mm

Tyre size : 6.00 x 12

Ground clearance : 203 mm

Travelling speed : 15 km ph (Max.)

Tilling width: 600 mm

Tilling depth: 190 mm

No. of blades: 20

Tilling capacity: 1 hectare/8hrs.

Overall dimensions: L2250 x W: 820 x

H: 1030 mm

Weight: 485 Kg

Light Unit: 12 volts, 40 Watts

Power Reaper Model KR 120

KAMCO Power Reaper is ideally suited for harvesting of paddy, wheat and

similar crops. It harvests and makes windrows @ 3-4 hours per ha. Since the fuel used

is kerosene, cost of operation is the lowest and it helps the farmer to harvest his field

at the lowest ever cost.

Specifications

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Model: KR 120

Dimensions

Overall length: 2390 mm

Overall width: 1470 mm

Height (Up to Handle):900 mm

Weight: 116 KG

Working Capacity: 3 -4 hr/hectare (1.2-1.8 hrs/acre)

Applicable Plant Height: 60-120 cm

Crop release: Right side of machine (viewed from rear)

Engine

Type: Single Cylinder, 4 stroke, side valve, Air cooled Engine

Fuel: Petrol Start, Kerosene run

Rated HP: 3.5

Max. HP : 3.85

R.P.M :3600

Specific Fuel Consumption : 339 gm/H.P hr

Fuel Tank Capacity : Kerosene 4 Litre, Petrol 0.4 litres

Air cleaner :Oil Bath Type

Starting :Recoil starting

Travel

Forward speed : 59.0 m/min

Reverse : 50 m/min

Applicability: Dry field & Wet field

Operation & Control

Main Clutch : Dog Clutch

Harvesting Clutch: Dog Clutch

Cutting

Cutting Device : Reciprocating Knife Bar

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Cutting Height : Adjustable 10-30 Cm grounded level

Cutting width : 120 cm

AGRIA 602 DE(06) Power Tiller

o Ideal for paddy or wheat cultivation

o Inter cultivation applications

o Various land preparations at horticultural farms

o Landscaping gardening

o Potato harvester

Specifications*330 mm to 1200 mm tilling width*Low maintenance*Highly fuel efficient*Easy controls and operations*2 speed pulley belt drive

Engine :PetrolDisplacement : 149 Cc 2 Stroke ElectronicClutch: Belt StressSpeeds: 2 Forward

Starter: Reversible

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Air Filter : Oil BathHandle Bar : Robust And Easily AdjustableRotary Tiller: Adjustable -33 Cm To 120 CmEngine Stop : By A Security System Acting AutomaticallyTransmission: By Gear And Chain In Oil Bath Weight: 67 Kg Including Rotary Unit

ORGANISATIONAL CHART

GENERAL MANAGER

ASSISTANT ENGINEER PURCHASE

TECHNICAL ASSISTANTS

MANAGER

ASSISTANT MANAGER ASSEMBLY

ASSISTANT ENGINEER ASSEMBLY


WORKMEN

ASSISTANT MANAGER

ASSISTANT MANAGER QUALITY

ASSURANCE

ASSISTANT MANAGER

ADMINISTRATION

ASSISTANT MANAGER ACCOUNTS



ASSISTANTS ACCOUNTS ASSISTANT

SUPERINTENDENT ACCOUNTS

WORKMEN

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UNITWISE BUSINESS OPERATIONS

The business areas operating in KAMCO are indicated in the matrix given below;

Sl. No.

Division /

Department

Corporate Set up

Location

Athani Palakkad Kalamassery Mala

1.0 Corporate Office * *

1.1 Marketing * *

1.2 Materials * *

2.0 Purchase * * * *

3.0 Production

3.1 Assembly * * * *

3.2 Pre-treatment & Ptg. * * * *

3.3 Machine Shop *

4.0 Maintenance * * * *

5.0 Quality Assurance * * * *

6.0 Engineering *

7.0 Store * * * *

8.0 Human Resource Management * * * * *

8.1 Human Resource Development * *

9.0 Finance * * * * *

10.0 Internal Audit * *

11.0 Systems * *

* Applicable in the unit location

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SWOT ANALYSIS OF KAMCO

Strength

High quality products

Least number of competitors

Customer satisfaction

Wide area network

Good supplier dealer relationship

Qualified, experienced & dedicated human resources

Direct support from state government

Well structured industrial safety

ISO 9001-2000 certification

Weaknesses

Focus mostly on power tillers

Cannot penetrate in to international market

Power tillers are hand driven, due to which tractors are preferred on plant land

Less export performance

Opportunities

Favorable changes in customer attitude towards mechanized farming

Globalization

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Access to technology

Reputation and profit

Threats

International competition

New entrants in national market

Unstable political setup

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DEPARTMENT WISE STUDY

Kerala Agro Machinery Corporation Ltd. (KAMCO) has this much departments.

PURCHASE

ASSEMBLY

QUALITY ASSURANCE DEPARTMENT

MAINTAINANCE

STORES

FINANCE

HUMAN RESOURCE MANAGEMENT

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PURCHASE DEPARTMENT

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PURCHASE DEPARTMENT

Purchase department ensures all raw materials, semi-finished components, fully

finished components for production implements and accessories, consumables and

subcontracted component are produced from approved vendors.

Purchase department accesses vendor capability to affect supplier in accordance with

purchase order meeting acceptable quality and deliveries so that they can be listed as

approved vendors. The department ensures goods received from order.

Purchase department provides feedback to vendors for improving quality of materials.

The department should have the responsibility to ensure the vendors performance is recorded,

monitored and suitably graded.

This procedure is applicable for the procurement of the raw materials, full finished

bought out components. This procedure doesn’t apply the procurement of general stores,

consumables, building materials, office furniture and equipments. All purchased and

subcontracted items which are required as inputs for the manufacture of products. The

purchasing procedure covers all vendors who are supplying sub assemblies, fully finished

components, semi finished components, raw materials and production consumables of critical

nature and which affect the quality of product.

PURCHASE ORDERS

1. Considering the requirements of all units of KAMCO, a combined purchase plan is

prepared group wise and this plan is used as master purchase plan for entire one year.

2. Purchase proposals are prepared in standard format based on the master purchase plan

for all units of KAMCO put together.

3. The proposals are then audited by internal auditor from finance department and upon

clearance; they are put up for approval of appropriate authorities.

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4. Purchase orders are released, separately for each unit of KAMCO after obtaining

approval from concerned authorities in respective formats and the copy of the order is

forwarded to concerned unit.

5. Delegation of financial powers to approve the purchase proposal is given in the

department quality manual.

The orders items may undergo verification at vendor’s premises depending on the

situation decided by the management. In view of this, the purchase order doesn’t have site

verification clause. Site inspected items received will have evidence of inspection by Quality

Assurance staff, supported by an inspection report and final acceptance is subject to approval

by Quality Assurance section head.

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ASSEMBLY DEPARTMENT

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ASSEMBLY DEPARTMENT

The process is to identify the activities to be followed in assembly so that the

assembly power reapers meet the specification. The scope of this process covers the assembly

of power tillers and reapers with implant and bought out components. Assembly of power

tiller is done in separate assembly lines engine lines, transmission line and tiller line. The

process plans of assembly are annexed in each of these different lines and several working

centres. These work centres are designated as line assemblies and for certain line assemblies

there are sub assemblies too.

There are three assembly lines, they are

1. Engine line

2. Transmission line

3. Tiller line

There is only one assembly line for reaper called Reaper line comprising of four work

centres, they are

1. Engine I

2. Reaper I

3. Reaper II

4. Reaper III

PRETREATMENT AND PAINTING

After the production process, next is to paint power tiller, power reaper and

components as per specified process.

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PROCEDURE FOR PRETREATMENT

Components which require pre treatment before painting are drawn from store by

assembly through store – issue-come delivery note and stacked at specified areas in the pre

treatment shop.

1. Based on requirement of assembly shop, components are taken and pretreatment is

carried out.

2. Concentration of pretreatment chemicals is checked once in week or when ever

required and loses if any is compensated.

3. Pretreatment process plan is available in Department Quality Manual.

PAINTING PROCESS

Pre-treated components and cleaned Power Tiller / Power Reaper engines are applied

with one coat of primer and one coat of paint with approved colour is painting booths.

Painting process adopted is we-on-wet system and solving enamel is used.

1. Spray painting is done under controlled pressure as in department quality manual

2. Conditions of conveyor speed, over temperature, duration for drying etc. are

controlled as specified in Department Quality Manual.

3. The settings shall be strictly adhered to, to minimize wastage of paint, consumption

power etc.

4. Workman ship is controlled by application viscosity of paint monitoring the dry film

thickness.

5. Painting process plan is available in Department Quality Manual of assembly shop.

6. Effluent treatment plant operations operated to treat effluent as per norms of Kerala

State Plan Control Board where available in unit.

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Quality assurance department at KAMCO ensures:

1. Identification and traceability of all products both bought out and processed inside

the plant are established at various stages of process.

2. Identification of in-process materials and raw materials.

3. Quality of bought out components.

4. Quality of assembling process.

5. Control of non-confirming products.

6. For corrective actions, preventive actions, and continued improvement.

7. Criteria for corrective and preventive actions by Quality Assurance Department.

8. Quality of inspection and testing.

9. Quality of maintenance and calibration of measuring instruments.

10. Quality of data analysis.

PROCEDURE FOR IDENTIFICATION OF INSPECTION AND TEST STATUS

1. RAW MATERIALS

Raw materials like castings and forgings before inspection are stored in

designated areas.

Raw materials for manufacture in the form of castings and forgings are stored

in the designated area by stores section after inspection and acceptance by

quality assurance department.

Rejected materials are tagged or marked with red color in visible area and will

be stored in a designated area.

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2. IN PROCESS MATERIALS

First piece inspection card/ route card/ process status tag/ used for machinery of

a component will indicate the inspection and test status in machine shop.

Finished components accepted are identified with green tags; re-workable

components are marked with rectification symbols (W/F/M/US) in yellow

paint. Rejected components are marked as PD (process defect) and MD

(material defect) in red paint.

Items to be reworked are identified with yellow tag. After rework, if the items

are acceptable, yellow color tag are removed by inspector concerned. If the

items are not acceptable even after rework, yellow marks are replaced by red

mark tag to indicate rejection.

3. ASSEMBLY

Correctness of assembly works done at each work centre is certified by

concerned mechanic on the assembly tag.

Status of engine performance test is identified as follows. Tested engine by

green paint mark on drain plug rejection/ rework recorded in engine assembly

tag status of tiller / engine in assembly or test floor is identifiable at all stages

by route cards. Accepted power tiller engine is affixed with “QC passed or

inspected” sticker by inspector or chief mechanic of quality assurance on the

radiator cover.

Tillers and reapers to be reworked are identified with yellow tag with a copy of

finished tiller or reaper inspection report where in the defects are noted. After

rework it is presented for re-inspection.

For reaper assembly, status of engine is quality tested by engine manufacturer

and sticker affixed. Status of reaper in assembly or test floor is identifiable at

all stages by reaper card.

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MAINTAINANCE DEPARTMENT

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MAINTAINANCE DEPARTMENT

The purpose is in order to critically utilize the resources of the company and to have

uniformity in procurement, corporate level panning is envisaged. It also ensures the

identification and procurement of measuring and test equipment is done keeping in view

correct specification and acquisition, including range, precision and durability under specified

environmental conditions. The purpose is to control, calibrate and maintain inspection,

measuring and testing equipment with systematic methods of calibration periodically. The

scope of this process covers all measuring instruments including gauges used by

manufacturing department and quality assurance department. And it also covers the

inspection instruments loaded to sub contractors and the instruments used by service

engineers.

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STORES DEPARTMENT

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STORES DEPARTMENT

The main purpose of the stores department is to spell out in detail how various items

are protected and preserved at all stages. The procedure of stores department function is

applicable to all areas where materials are handled and stored. The head of the department

ensure the compliance to this procedure.

MATERIAL RECEIPT

All materials including raw materials, components and production consumables

received from different vendors directly through transporters along with dispatch notes

are received. Received quality is entered and the item is submitted to quality assurance

department for inspection with material tag.

ISSUE OF MATERIALS

Raw materials for outside machinery, components and consumables for production,

parts for subassembly are issued inconvenient batches against stock issue cum delivery

note.

PACKAGING

The finished engines dispatched to customers or dealers are packed in separate

wooden box for avoiding damage during transit. The finished tillers and reapers including

toolkit and manuals are dispatched to various far off destinations with a specially

designed mounting frame to keep the tillers vertically down in order to accommodate

more number of tillers in a single truck in which case oil and water are drained. Spare

parts are packaged in polythene covers and put in wooden box or cardboard box for

dispatch.

FRAMER’S KIT

The items coming in framers kits are packed in separate cardboard cartons.

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EXPORT ITEMS

Tillers, reapers as well as spare parts for export covers with plastic covers and then

put in seaworthy wooden boxes.

DISPATCH AND DELIVERY

On instruction from the marketing department in the form of dispatch advices,

dispatch of finished products, spare parts after proper packing is made by stores through

appropriate modes of transport as per dispatch advice along with supporting documents.

Spare parts are issued to sale counters as per instruction of marketing department through

stock transfer notes.

PRESERVATION

Rust preventive is applied on all plated parts of tillers and reapers to protect them

from corrosion. Exports rust preventive is applied on all plated parts before packing.

RESPONSIBILITY

It is the responsibility of respective head of department to ensure the compliance to

this procedure.

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FINANCE DEPARTMENT

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FINANCE DEPARTMENT

Finance department collect and compiles data for management information

system for making timely reports. The departmental function involves ensuring

optimum level of inventory to keep financial cost low through appropriate controls.

They also prepare budgets and exercise budgetary control over financial aspects.

Finance department ensure that the employees are satisfied by providing their

eligible benefits correctly and timely. The financial transactions are recorded based on

the accounts manual accepted by the company and statutory accounting requirements

under company’s act 1956 and other statutes and guidelines issued by ICAI. The

scope of this quality system is further limited to achieve timely through system

procedure, up to date record maintenance and its retrieval and thereby to satisfy the

stakeholders in the company.

Procedure related to various activities in the division laid down in the accounts

manual of the company. There is procedure mainly deals with the following function

for better customer and stake holders satisfaction.

1. BUDGET AND BUDGETARY CONTROL

Annual budgets are prepared for both capital and revenue based on the equipments

furnished by various departments. The departmental requisitions are analyzed and

after consultation with departmental head and corporate divisional management

group, fund is finalized based on the disposition of funds. Consolidated budgets are

presented to the management and to the board for the approval.

2. MANAGEMENT OF RECEIPTS

Payments from dealers and customers received through marketing department are

acknowledged by issuing proper receipts. Customer wise and dealer wise accounting

system is adopted, documents outstanding are informed to marketing department once

in a month for further actions.

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3. MANAGEMENT OF PAYMENTS

Subject to availability of funds, payments committees are honored on due dates.

Statutory remittance, payments to employees, various payments against services

rendered and payments to suppliers constitute the outflow of funds. All payments are

supported by approved vouchers. Authority for approval is determined by the

delegation of pores issued by the management from time to time. As far as possible

payments to suppliers are effected as per order, terms and conditions.

4. MANAGEMENT OF ASSETS

Finance department ensures that the entire assets of the company are utilized to

the efficient manner and they are secured against all possible risks. Finance

department maintains all records of all assets including plant and machinery, furniture

and fittings of the company. Annual stock verification is arranged for above assets

jointly with user departments and reconciled with records kept by finance department.

The departments make appropriate insurance and other statutory obligations to

safeguard the assets of the company. The effectiveness of inventory management is

reviewed by finance department through regular inventory checks and advice

necessary to various departments.

5. AUDITING

Internal audit department is vested with corporate functioning. The internal audit

takes care of ‘CARO’ requirements of company’s act 1956 and also acts as a ‘watch

dog’ of the entire organization. The primary responsibility of department is to ensure

that the policy decisions of the management is strictly followed by the financial

department and is verified by internal audit department. General audit functions are

carried out as per ‘accepted audit practices’ and general guidelines issued by ICAI

and also according to the audit manual approved by the company. Internal audit

undertakes auditing of payroll, purchase, work orders, bills payable, perpetual

inventory checks of stores.

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6. COSTING

Costing records are maintained as per cost accounting record rules and they are

subjected to cost audit ordered by company law board costing by the finance

department advices the management and departments about the potential areas of the

cost reduction. Costing function analyze the cost of reduction on yearly basis to

facilitate management to time buy or make decisions. Costing advices the accounts

department of cost of rejection as per warranties claims to be deducted from vendors.

7. STATUTORY TRANSACTIONS

Sales tax, income tax, tax deducted at source, certificates etc, is issued and properly

accounted and timely settlements are made. Salary and other payments recoveries and their

remittance in the case of employees are done in time.

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PURPOSE

To ensure that right candidates are recruited as per requirements.

To ensure that employees safety is managed effectively.

To ensure that employees welfare is managed effectively.

SCOPE

The scope of human resource management is it covers all personnel.

RESPONSIBILITY

Department head of human resource management will be responsible to see that the

procedure is followed by all officers and staff in the department.

PROCEDURES

1. The recruitment, promotion and pay fixation will be carried out as per the recruitment and

promotion rules notified by the company from time to time.

2. A safety committee is constituted by the management from time to time. Equal number of

nominees of management and unions constitutes the committee. The committee meets

every three months to assess safety requirements as per Factories Act 1948 and

recommendations if any to the management for consideration.

PROTECTION OF EYES

workmen who are working in grinding machines, milling machines, lathers and doing

welding and fettling and provide with goggles for protection of eyes.

PRECAUTIONS IN CASE OF FIRE

Fire extinguishers are provided in all departments. Selected employees based on their

age and aptitudes are given training to use fire extinguishers. A list of trained

employees in fire fighting is displayed in factory premises.

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UNIFORMS

All workmen provide with uniform as safety precautions.

SHOES AND SOCKS

All workmen in factory and plant area are provided with shoes and socks as a safety

measure.

EXCESSIVE WEIGHTS LIFTING

Cranes are provided for lifting the heavy components and these cranes are tested and

certified by competent authorities as per Factories Act 1948.

PROTECTION AGAINST DUST

Workers working in places where dust is present are provided with face masks.

FIRST AID

First aid boxes provided in production department and employees handling first aid

are trained. List of personnel trained in first aid is displayed in the factory premises.

ACCIDENTS

All the accidents are recorded and reviewed quarterly by head of department of

human resource management and submits a brief report to the management, for any

corrective and preventive action. This is also discussed in management review

meeting.

3. Following welfare schemes are in operation as per special bye laws prepared for each

scheme.

Conveyance advance

Group personal accident insurance scheme through Kerala state insurance department.

KAMCO employees group gratuity cum-life assurance scheme in association with

Life Insurance Corporation of India.

KAMCO welfare centre.

RECORDS

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1. Safety equipment issue register

2. First aid box maintenance record

3. First aid training record

4. Accident register

5. Crane and compressor test record

6. Minutes of safety committee meeting

HUMAN RESOURCE DEVELOPMENT

KAMCO human resource management department ensure the improvement of human

effectiveness through a planned and effective management process. Human Resource

Management Department concentrates to identify human resource requirements and job

specification. The department evaluates and selects the suitable personal. Human resource

department provides proper human resource development activities like training. The

department periodically appraises the performance of personnel and effectiveness of training

where applicable.

A personal record sheet is prepared for every employee who will give all personal

particulars of the employee in regard to educational qualification, experience, employment

record and details of training received while in employment with KAMCO. New appointees

are put on orientation training in the functionally related department of concerned unit before

he is posted to desired department in case of transfer of employees from one department to

another, and on the job training or orientation training will be given in the new department.

Human resource development committee will meet as often as necessary to review the

training reports and also the evaluation sheets. Unit heads are invited for such meetings.

At the end of the year Human Resource Development Section will submit the

details of training arranged against the approved training calendar to the managing

director.

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PURPOSE

To improve human effectiveness through a planned and effective management

process.

SCOPE

To identify human resource requirements, job specifications.

To evaluate and select suitable personal.

To maintain the competence of personnel through human resource

development methods, including training.

To periodically appraise the performance of personnel and the

effectiveness of training where applicable.

RESPONSIBILITY

The human resource management department at Athani will have corporate

control on the training in all units. Responsibility to assess training needs rests with the

concerned departmental heads or unit heads. Training programs as per approved training

calendar is arranged by human resource management department in the Athani unit and

the unit heads. The departmental heads will also plan proper utilization of the trained

personnel.

PROCEDURES

1. A personal record sheet is prepared for every employee who will give all

personal particulars of the employee in regard to the educational qualification,

experience, employment records and details of training received while in employment

with KAMCO. Particulars in the personal record sheet up to serial number 7 will be

filled in by the human resource department. In Athani unit the personal record sheet

received from human resource management department will be maintained by human

resource development section. In other units, personal record sheets will be

maintained by the unit head of human resource department.

2. New appointees are put on orientation training in the functionally related

departments of the concerned units before he or she is posted to the desired

department. This training will be of one or two weeks duration depending upon the

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candidate and the employment proposed in KAMCO. In the corporate office, the

training will be arranged by the unit head or the person of the department assigned

with such a responsibility. An orientation training report is prepared for all new

appointees. A person will be posted to a department only after the orientation training

is completed successfully. The orientation training report will be sent to the human

resource management department after completion of training, for posting of the

candidate.

In the case of transfers of employees from one department to another, on the job

orientation training will be given in the new departments, for duration of maximum

of one week. This will be applicable all permanent employees (except work assistants

and peons) who are new to the particular department.

3. Other than orientation training referred in service training will be given only to

permanent employees confirmed in service. In order to have uniform and need based

training, corporate level training calendar is prepared at the head office at Athani.

Human resource development committee will consists of the following members.

Deputy general manager (finance)

Deputy general manager (PU)

Deputy general manager (Research and Development)

Senior manager (HRM)

Manager (MU)

Manager (KU)

4. Department heads in Athani will assess the training needs of the employees in

the department at the end of each calendar year and forward the same to human

resource development section. In the other units, training needs will be assessed by

the departmental heads and will be forwarded to human resource management

department by the unit head. Human resource development section at the head office

will consolidate the training needs.

The training requirements forwarded to human resource department as per

above will be examined by the human resource development committee. When

training requirements of units are considered by this committee, respective unit heads

are invited. Training calendar will be prepared by the human resource development

committee for approval by managing director. Human resource development section

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will communicate the annual training calendar to the departments of Athani and to the

units for implementation.

The human resource committee will meet as often as necessary to review the

training reports and also the evaluation sheets. Unit heads are invited for such

meetings.

At the end of the year, human resource development section will submit

details of the training arranged against the approved training calendar to managing

director with a copy to manager. Progress of training will be reported to the

management review meeting by the human resource management department.

5. On receiving training, each employee of Athani unit is required to submit a

training report to human resource development section through the department heads.

Employees of other units will similarly submit the training report to the unit head or

the person of the department assigned with the responsibility of training, which will

be sent to human resource development section at head office. Workshop, seminars

and short term courses are exempted from submitting the training report. The training

report will be reviewed by the human resource development committee.

If an employee is sent for training outside the unit, effectiveness of training received

by the employee is assessed by the concerned departmental head in all the units after

six months and an evaluation sheet is prepared. In Athani unit this will be sent by the

department head to human resource development section. In other units, this will be

sent to the unit head or the person of the department assigned with the responsibility

of training, who will forward the same to human resource development section of

Athani. The committee will review the evaluation sheet. If the committee feels that

the assignment should be brought to the notice of managing director, and a report will

be submitted to him for information.

6. Human resource development section maintains personal record sheet

periodically assessed by the human resource development committee, to assess the

employee’s competence.

7. Evaluation of new employees after orientation training is initiated by human

resource development.

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RECORDS:

Personal record sheet

Orientation training report

Training report

Evaluation sheet

Report to MRM

PERFORMANCE ANALYSIS

Performance analysis is a tool for analysing the performance of the company. By comparing

the performance of the company with those of the previous year performances, we can

understand company’s growth. For this study the company’s sales details and its profit to be

taken to evaluate the whole performance of the company. Performance analysis is helpful to

understand its position in the competitive market.

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SALES ANALYSIS

Table 1

Year Sales(in crores)

2003-2004 68.15

2004-2005 79.34

2005-2006 79.98

2006-2007 91.22

2007-2008 101.22

2008-2009 128.28

Chart 1

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-20090

20

40

60

80

100

120

140

Chart Title

sales

INTERPRETATION

The above table shows an increase in sales analysis. The year 2004-2005 shows a net sale of

79.34 crores, when it is compared with other years as we come down the table; the net sale is

increased in the recent year 2008-2009 as 128.28.

PROFIT ANALYSIS

Table 2

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Year Net Profit (in crores)

2003-2004 5.12

2004-2005 4.68

2005-2006 5.24

2006-2007 5.73

2007-2008 6.25

2008-2009 11.69

Chart 2

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-20090

2

4

6

8

10

12

14

PROFIT ANALYSIS

Net Profit (in crores)

INTERPRETATION

The above table shows that there is a regular increasing tendency in the net profit except in

the year 2004-2005. In 2008-2009 it reaches at 11.69.

GROWTH RATE

Growth Rate = Current Year Profit – Previous Profit / Previous profit *100

Table 3

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Year Growth Rate (in crores)

2003-2004 -25.15

2004-2005 -8.5

2005-2006 11.97

2006-2007 9.35

2007-2008 9.07

2008-2009 11.68

Chart 3

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

-30

-25

-20

-15

-10

-5

0

5

10

15

Chart Title

Growth Rate (in crores)

INTERPRETATION

The above growth rate table and chart shows there is a positive increasing tendency from the

year 2003-2004 to 2005-2006. After the financial year the 2005-2006 graph shows a

decreasing tendency. During the financial year 2008-2009 it reaches at 11.68.

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CONCLUSION

The objective of study is familiar with an organizational environment and to get an

idea about the functions of different departments. SWOT analysis was also carried out this

study helped to understand the working of different department in the company. It helps me

to given an immense knowledge about the day to day working of the company.

The following are the major conclusions drawn.

1. The company “Kerala Agro Machinery Corporation Ltd. (KAMCO)” produces

only quality products. Quality is the main reputation for the company and that gave

the company the top position in the market.

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2. Everyone in the company is fully dedicated in their work and in turn that gives full

success to the company.

REFERENCES

Various official records of Kerala Agro Machinery Corporation Ltd. (KAMCO).

Website of the Kerala Agro Machinery Corporation Ltd. (KAMCO).

kamco project report

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