A

PROJECT REPORT

ON

“WORKING CAPITAL”

OF

“HINDUSTHAN NATIONAL GLASS & INDUSTRIES LTD.” In the Partial Fulfilment of the Degree of

MASTER OF BUSINESS ADMINISTRATION From

COER SCHOOL OF MANAGEMENT,

(Affiliated to H.N.B.Garhwal University, Srinagar, U.K) (Affiliated to H.N.B.Garhwal University, Srinagar, U.K)

Submitted To: Submitted by:

H.N.G.I.L VIRBHADRAH.N.G.I.L VIRBHADRA DEEPTI DEEPTI BHANDARIBHANDARI

RISHIKESHRISHIKESH M.B.AM.B.A 2rd year2rd year

FORWORD

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In today’s highly competitive and rapidly changing environment, the companies need well-trained and skilled worker to survive. India is a very rich country in terms of resources, whether natural or technical but it very infortunate to state that India, till now, has not perfectly learnt how to deploy its manpower and its human resources for the betterment of its citizenry and business goal.

On the whole the condition of our nation is not as well as it should be the reason is that, we have a great quantity of people but unfortunately it is not well trained. The only was to pull out India from this condition is concerting the human resources of the country into human capital.

That’s why management education has become more popular and important as well but no education is complete without some practical knowledge. So to get the student familiar with the real life situation, a summer training of 6-7 weeks duration has been kept in the MBA course.

For my summer training, I chose the HINDUSTHAN NATIONAL GLASS & INDUSTRIES LTD. It is well established and renowned in its field and is serious about training its working and intend to make it understood that they really care for them.

CONTENTS

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AcknowledgementPrefaceExperience during summer training Introduction of HNGILHNG’s VisionHNG’s Group profile

Board of Directors of the CompanyHistory Hindusthan National Glass& industries Limited Location Of The Company Lab and machines equipments Organizational chart Bussiness standard Welfare activities SWOT analysis of the company Safty measures HNG’s policies Human resourse department activities ISO awareness Manufacturing process of glass Veerbhadra unit profile

Performance appraisal system Purpose of performance appraisal Charecterstisc of performance appraisal Objectives of system Business progress (2011-2012) Financial highlights of (2011-12)

Research methodology Meaning Objectives of research Data collection of resousces Data analysis and interpretation

ACKNOWLEDGEMENT

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ANY ENDEAVOUR IS DIFFICULT TO EVEN INITIATE without the help of many good

souls, who are always there by the grace of God. This report is result of many helps provided

by many individuals, especially related with absenteeism problem in HNGIL.

I am grateful to HNGIL, Rishikesh, and (Uttarakhand) who allowed me to undergo my

summer training in their esteem organization.

I owe my sincere thanks to Mr. V.K. Chitturi (Vice President), Mr. B.D.Joshi (Officer, HR)

who not only helped and guided me but also encouraged me with their valuable suggestions.

The invaluable guidance of my project guide Mr. Charu Khurana, OIMT, has not only

helped in achieving this research study but also learn many aspects of this field.

I would be failing in my duty, if do not thank all those staff members who took pain to

cooperate while filling up the questionnaire and to my classmates who indirectly helped in

shaping my ideas and thoughts. Not forgetting my mother whose silent prayers and blessings

were always with me as a great support in completion of this report.

PREFACE

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As a part of my M.B.A. (Master in Business Administration) program I

was asked to undergo forty five days summer training in any organization, so as to give

exposure to practical management and to get familiar with the various activities in the

organization.

I got an opportunity to undergo my summer training in the reputed organization “Hindustan

National Glass& industries Limited” in Virbhadra (Rishikesh); it is the leading genet

manufacturing company in India. In Hindustan National Glass and Industries Limited. I was

allowed to work on the project title “interpretation of financial statement of “Hindustan

National Glass& industries Limited”.

Research gives an ample opportunity to apply once academic knowledge in the field of

substantiated by ones inactive and lesion capabilities.

The basic purpose of this project is to present the subject matter in simple language and

easily understandable style to assist the reader to develop through understanding about the

actual scenario of the financial position of the organization.

For analysis and interpretation, financial data has been taken from financial reports of the

concern and performance is evaluated by applying the tool of ratio analysis.

Experience During Summer Training

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Experiences make life enjoyable and enriching just as my summer training in Hindustan National Glass And Industries Limited proved to be an asset for me. I got practical exposure in various aspects of finance and I also learnt the dynamics of work related behavior of the people working in the organization.

In the Hindustan National Glass And Industries Limited, employees of all level are instructed to use same dress, canteen and conveyance. I am very impress from this behavioral approach used by organization. The employees of Hindustan National Glass And Industries Limited are very helpful and cooperative with everyone. I never face any problem during my training period.

The company provided me all type of facility that I needed in my training period. I learnt various types of MIS reports like how to make profitability reports of various glasses. I understood the process of glass manufacturing used by the organization. I also gained knowledge about the purchase and payment system of factory.

Quality of every product is checked by senior officials of quality control department at every step that provided me thorough learning about quality controlling mechanism. I hope all these experiences would help me in near future. On the whole my summer training was an enriching experience for my future and I am always obliged to them for giving me such type of knowledge.

INTRODUCTION TO HNGIL

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HNGIL is manufacturer of all varieties of glass bottles/vials. Manufacturing facilities are strategically located at Rishra near Calcutta (since 1952) and Bahadurgarh near Delhi (since 1964), Rishikesh, Pondicherry and Nashik with state-of-the-art induction furnace for manufacturing of castings in its own foundry. HNGIL has incorporated its technology from the best suppliers in Europe and USA. HNG Group operates 10 furnaces and 42 production lines with fully automatic IS (Individual Section) machines up to 12 Sections operating on Double and Triple Gob. 

All the Plants have a thorough electronic inspection system right from the batch mixing till the final packing. Quality control and R&D Sections are well equipped with sophisticated instruments enabling production of international quality glassware.

Well-equipped workshop to manufacture moulds for bottles of all designs & shapes, backed up by own Power Generating Plants.

The far-sighted and dynamic approach of Mr. C.K. Somany, the highly focused management strategies and the leadership qualities of his sons Mr. Sanjay Somany and Mr. Mukul Somany have turned every challenge into a winning formula.

HNG’S Vision

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“To strive to be a major international producer of quality containers glass by consistently following and adopting the most modern methods and techniques in an environment friendly manner with active involvement of its employees to meet the needs of its customers and stakeholders so as to achieve sustainable development and long term growth.”

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COMPANY PROFILE

HNGIL Group Profile

A NAME TO RECKON WITH: HNGIL, the largest and most prolific producer of glass containers, operating at present 10 furnaces at five locations (Rishra , Bahadurgarh, Pondicherry, Rishikesh, & Nasik) and production lines. . In addition HNG has acquired a Glass Container manufacturing unit of M/s Haryana Sheet Glass Limited at Neemrana, Rajasthan. A fully integrated Group having its own foundry for casting, well equipped workshop for moulds and spare parts and captive power plants and quarries for sand with fleet for finished goods movement has given competitive advantage to its customers.  

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A MARKET LEADER :  In the 5 ml  -  3200 ml segment, HNG Group is the undisputed market leader catering to around 70% of the Domestic Market in the pharmaceutical, beverage, processed food, cosmetic and liquor sectors covering industry majors like, Coca-Cola, Dabur, Glaxo Smith Kline Beecham, Nestle, Pepsi, Reckitt Benckiser (India) Ltd., Smith Kline Beecham, UB Group etc. Exports to South East, Middle East, Africa and First World Countries in Europe & North America.

ON SUPER FAST GROWTH TRACK: Its spirit to ascend newer parameters remains      as insatiable as ever. The days ahead are gleaming with promise. With modernization, up gradation and foresight to meet the emerging and more distinctive demands of the customers, the Group is all set for unprecedented achievements. With projected planned investment of Rs.3000 million in the next three years. Touching life in more ways than one and in total tune with the harmony of nature.

History

It was in 1952 that visionary entrepreneur Chandra Kumar (CK) Somany laid the foundations for the HNG Group, with the inauguration of Eastern India's fully automatic glass container manufacturing plant at Rishra, near Kolkata (Calcutta). Today, a family dynasty has been created that leads the way in the local market, catering to the needs of a diverse range of industries, from liquor and pharmaceuticals to soft drinks and cosmetics. The far-sighted and dynamic approach of Mr. Somany, coupled with the highly focused management

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strategies and leadership qualities of his sons Sanjay and Mukul have turned HNG into a recognized international player.

Hindustan National Glass & Industries Ltd (HNGIL) is a rare breed in the international glass container community of the 21st Century, an extremely successful family-owned and run business, market leader and owner of four significant manufacturing plants. With a total melting capacity of 2300 tones/day, the company is constantly in search of improvements. In total, 38 highly productive lines are operated, from which pack efficiencies of better than 90% are now standard. Introduction of the latest automation practices has also led to reduced labour costs, workforce having dropped by two-thirds in the past 15 years to approximately 4000.

Diversified production capabilities

Alongside the original Rishra factory near Kolkata, since 1964 HNG has operated a plant at Bahadurgarh, close to New Delhi. Flint, amber and green colors are produced on 13 Lines at Rishra, while the larger Bahadurgarh facility melts flint, amber and cosmetic-grade compositions, operating a total of 15 lines. Associate company Ace Glass Containers Ltd has manufacturing capacity at Rishikesh (flint and green, six lines) and Pondicherry (flint, four lines). Formerly a 100% subsidiary of USA-based Owens-Illinois Inc, Ace was acquired in 2002, when 0-1 took the unexpected decision to exit the Indian market. Prior to the HNG takeover, production at a third factory in Pune had ceased. With the recent acquisition of the

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container glass unit of Larsen & Turbo, situated at Nashik in Western India, HNG has now established its presence in all the four zones of India. The Nashik plant has a melting capacity of 330 tones per day, operating a total of four lines (flint).

Future plans

HNG’s endeavor to cater for the entire Indian market has been successful but the quest for further expansion has not ended as plans for a new facility between Mumbai and Baroda are expected to be progressed within the next two years. When operational, this plant will be larger than any of HNG's existing facilities, although precise details are still under wraps.

The origins of this collaborative approach stem from CK Somany's plans to develop the business in the 1950s.

Alongside HNG’s expansion of glass manufacturing expertise is a commitment to maximize the capabilities and efficiencies of its support services. Apart from owning sand quarries, the company operates a state-of-the-art induction furnace to make castings in its own foundry. Located at Bahadurgarh, this operation complements a well-equipped mould production shop and the latest CAD/CAM facility to design articles in a variety of shapes.

Also situated at Bahadurgarh is subsidiary company Glass Equipment (India) Ltd. GEIL was created in 1974 and specializes in the manufacture of glass forming equipment. Currently operating at full capacity to keep pace with HNG's own requirements as well as satisfying orders from other glassmakers, GEIL produces complete IS machines as well as conversions, electronic timing systems, feeders, conveyors, ware transfers, stackers, motor-driven presses and spare parts.

Future successes

In recent years, the HNG group has emerged as India's leading glass container manufacturer, expanding and modernizing its production expertise to keep pace with growth in the local market. Demand is expected to grow by a further 8% in the next 12 months and while smaller players become increasingly regionalized and unable to compete on an effective level, there can be little doubt that HNG--led by the Somany family-can look forward to continuing success in the future.

Hindustan National Glass & Industries Limited

It is the pioneer in Glass container manufacturing in India. AGCL was formed in 1994 as Owens Bilt Ltd. (OBL), a joint venture between Owens-Illinois inc. (OI), USA and Ballarpur Industries Ltd. (BILT), is currently owned by the C.K. Somany group. After the takeover, OBIL was renamed as Ace Glass Containers Ltd. Since inception, AGCL is engaged in manufacturing container glass & tumblers. Currently, the company has three manufacturing plants at Rishikesh (Uttranchal), Pondicherry and Nasik (Maharashtra) with an aggregate capacity of 366825 TPA. All the three units have ISO 9001:2000 accreditations.

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Prior to the takeover by the C.K Somany group, the company had suffered huge operational losses mainly on account of substantial overheads and tremendous competition from HNG in respect of product pricing. The new management was able to address the overhead issue effectively by adopting various cost cutting measures and leveraging on group’s strong position in the container glass market. Consequently, AGCL started earning profits immediately after takeover (from financial year 2003 onwards). However in FY’2006, the company had suffered a loss on account of production loss, rise in the raw material prices and increase in the capital charge.In the organized segment of the domestic glass container industry, AGCL is the second largest glass manufacturer after HNG with a market share of about 25%. It manufactures about 300 types of glass containers, at an average of 15 lakh pieces per day, for industrial customers. Its major customers include United Breweries, McDowell & company, Bacardi Martini India, Nestle, GlaxoSmithKline and Seagram. AGCL uses state-of-the-art technology for glass manufacturing. Since AGCL alone has a market share of about 25% and along with its parent company, HNG, the group has a share of 65% in the domestic market. In the FY’06, AGCL refurbished the second furnace at Rishikesh Unit at a cost.

Lab and machine equipmentsGroups of companies

Glass Equipment ( India ) Ltd.

Incorporated in 1974, Glass Equipment ( India ) Limited is a reputed Indian container glass manufacturing company, which accounts for the manufacture of sophisticated equipment for

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glass plants. It is also an expert in manufacturing critical spares for Glass container manufacturing industries and provides solutions in setting up glass plants on a turnkey basis. GEIL not only provides the equipments for the glass industries; it provides expert guidance in the entire process of glass container manufacture.Glass Equipment ( India ) Limited is located in New Delhi (on National Highway No. 10) at a proximity to the Bahadurgarh Plant.

AMCL Machinery Ltd.

AMCL Machinery Limited is based in Butibori ( Nagpur ) on a prolific area of 5000 square meters. It is one of the well known companies in India that deals with the design and production of machineries for the Rubber & Tyre Industry, Transit Mixers, Cement Industry and Bulk Handling System. It also accounts for the supply and installation of mechanical equipments in the given industries. The company is certified with ISO 9001:2000 and is looking forward to technical collaborations with the Japanese manufacturers.

Somany Foam Ltd.

Somany Foam Limited was set up at BHEL Industrial Area, Haridwar with a capital outlay of INR 360 million. It is one of the fastest growing in India that specializes in the manufacture of the different types of foam, especially Polyurethane Foam.

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HNG Float Glass Ltd.

HNG Float Glass Limited was incorporated in 2006 in Halol ( Gujarat ) under the flagship of the HNG Group to manufacture the different varieties of float glass. The company started with a capital outlay of INR 550 Cr and has an installed capacity of 600 TPD.HNG Float Glass Limited was established by the HNG Group for a synergic diversification of their line of business. This business initiative gave the Group an opportunity to explore the new arenas of the glass business, which is booming at present.

Milestones

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New Developments

NNPB Technology

NNPB is a revolutionary process that not only controls the distribution of glass inside the container, but also reduces the weight of glass by 33% without having any adverse effects on the performance of the glass containers. HNG is the first to introduce and commercialize this technology in India. .

HNG introduced the narrow neck press and blow (NNPB) technology in 2007-08, which lead to the reduction in the consumption of molten glass per bottle without compromising on product strength. Facilitating superior glass distribution, this technology reinforces the bottle's resistance to pressure on the filling line. It also leads to a decrease in logistics cost and increase in consumer acceptability of the bottles

HNG invested a capital of Rs. 100 Cr. to introduce this technology in India. On one hand, this technology enabled the company to reduce production costs and wastages; and on the other, it strengthened capacity utilization. Through NNPB, HNG strives to remain competitive with other packing alternatives and continue to be the market leader in India.

Narrow Neck Press and Blow Vs Blow and Blow technology:

The parison facilitates precision in control

Enhanced glass distribution throughout the bottle

Lighter in weight, hence a lower consumption of molten glass

Lower cost

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Business Summary

HNGIL, the largest and most prolific producer of glass containers, operating at present 10 furnaces at five locations (Rishra, Bahadurgarh , Pondicherry, Rishikesh, & Nashik ) with 42 production lines. In addition HNG has acquired a Glass Container manufacturing unit of M/s Haryana Sheet Glass Limited at Neemrana, Rajasthan. A fully integrated Group having its own foundry for casting, well equipped workshop for moulds and spare parts and captive power plants and quarries for sand with fleet for finished goods movement has given competitive advantage to its customers. In the 5 ml - 3200 ml segment, HNG Group is the undisputed market leader catering to around 70% of the Domestic Market in the pharmaceutical, beverage, processed food, cosmetic and liquor sectors covering industry majors like, Coca-Cola, Dabur, GlaxoWellcome, Nestle, Pepsi, Reckitt Benckiser (India) Ltd., Smithkline Beecham, UB Group etc. Exports to South East, Middle East, Africa and First World Countries in Europe & North America.

Its spirit to ascend newer parameters remains as insatiable as ever. The days ahead are gleaming with promise. With modernization, upgradation and foresight to meet the emerging and more distinctive demands of the customers, the Group is all set for unprecedented achievements. With projected planned investment of Rs.3000 million in the next three years. Touching life in more ways than one and in total tune with the harmony of nature. In order to keep pace with changing technology and demands, the Group has acquired the Glass Division of L & T at Nashik in October 2005, having one furnace of 320 TPD melting capacity. HNGIL has also entered into a scheme of amalgamation with Ace Glass Containers (ACE) which scheme has been sanctioned by the Hon'ble High Courts of Kolkata and Delhi. Post amalgamation HNGIL's un-audited turnover as on 31.03.2008 stands at a figure more than Rs. 1100 crore.

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Products Summary

Our Products Beverages Cosmetics Pharmaceuticals Liquor

Processed Food

Machines and Warehouses images

IS machine Lab equipment Lab equipment On line inspection

On line inspection On line inspection Packing Plant overview

Power Generation Power Generation wherehouse Warehouse

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ORGANIZATIONAL CHART

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LOCATION OF THE COMPANY

The picturesque surroundings against the backdrop of Himalayas on side and the shivalik hill on others, the healthy river Ganga flanking the area abundant supply of pure and cool water, coupled with the low dust contained and negligible bacterial count of the atmosphere makes the site on ideal one for the manufacturing and finishing of the bottles.This plan is 222 km from Delhi. It is located at Haridwar- Rishikesh road near I.D.P.L. This is about 6 km from Rishikesh & 17 km from Haridwar. In India, except Rishikesh unit ACE Glass Container (I) Ltd. has 2 more units that are Pune and Pondicherry.Organizational Set Up Of Hindusthan National Glass and Industries Limited Glass Container LimitedIn the functioning of any organization, the role of human being is an important factor. According to the size of an industrial unit, the workforce is placed into different position. Their areas of responsibilities and accountabilities and the channels of communication are defined and recorded for display so that everyone in the organization understands the clarity regarding horizontal & vertical communication. This clarity else the way to whom help in carrying out the respective function.In Hindustan National Glass And Industries Ltd. Rishikesh, whole activity is under the control of chief General Manager, who has Deputy General manager under him and then we have horizontal line of authorities like production manager, commercial manager, accounts manager, design & workshop manager, sales & purchase manager, personnel manager, quality control manager, chief glass technologist, chief engineer & many more also.

IMPORTANT DEPARTMENT ANDDESIGNATION

Department Designation

Plant Head Vice President Production Department Dy.General Manager Quality Assurance Department Dy.General Manager Finance Department Manager Personnel & Administration Sr. Manager-HR Purchase Department Asstt.General Manager Sales/Warehouse & Stores Department Sr.Commercial Manager Batch House &,Furnace & Cullet Manager Senior Manager Glass

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Raw Material Used & Its Sources

Raw Materials required in the organization are ore obtained from various mines & other places or areas:-

Silica sand (mineral) –former material (main agent) >

SIO2 from Allahabad, Ghaziabad, Faridabad and jaipur.

Soda ash (chemical)-flux material to lower down melting >

Al2O3, Fe2O3 from Jaipur and other places also.

Lime stone + dolomite (mineral): both are used as stabilizers (stability)>

Cao+ MgO from Jaipur & Dehradun.

Feldspar –used for durability>Na, K20 from Jaipur;

Fine Chemicals-De->Selenium from special markets; and

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BUSINESS STANDARD

A Name To Reckon With

HNGIL the largest and most prolific producer of glass containers, operating at present

10 furnaces at five locations (Rishra, Bhahadurgarh, Pondicherry, Nasik, & Rishikesh) and

production lines. In addition HNG has acquired a glass container manufacturing unit of M/S

Haryana Sheet Glass Limited at Neemrana, Rajasthan. A fully integrated group having its

own foundry for casting, well equipped workshop for moulds and spare parts captive power

plants and quarries for sand with fleet for finished goods movement has given competitive

advantage to its customers.

A Market Leader

In the 5ml – 3200 ml segment, HNG Group is the undisputed market leader catering to

70% of the Domestic Market in the pharmaceutical, beverage, processed food, cosmetic and

liquor sectors covering industry majors like, coca-cola Dabur, Glaxo Smith Kline Beecham,

Nestle, Pepsi, Reckitt Benckiser (India) Ltd., Smith Kline Beecham UB Group etc. Exports

to south east, Middle East, Africa and First world countries on Europe & North America.

On Super Fast Growth Track

Its spirit to ascend newer parameters remains as insatiable as ever. The days ahead are

gleaming with promise. With modernizations, up gradation and foresight to meet the

emerging and more distinctive demands of the customers, the group is all set for

unprecedented achievements. With projected planned investment of rs.3000 million in the

next three years. Touching life in more ways than one and in total tune with the harmony of

nature.

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Milestones

In order to keep with changing technology and demands , the group has acquired the glass

division of L & T at Nasik in October 2005, having one furnace of 320 TPD melting

capacity . HNGIL has also entered into a scheme of amalgamation with ACE GLASS

CONTAINERS (ACE) which scheme has been sanctioned by the Honorable High Courts of

Kolkata and Delhi. Post amalgamation HNGIL’s un-audited turnover as on 31.03.2008

stands at a figure more than Rs. 1100 crore.

Rishikesh

  2 Furnaces; Combined melting capacity of 340 MT per day

  Furnace II used for manufacturing of Green glass.

  6 Lines of Glass making IS Machines

  Off-site printing facility with 3 decorating lines

Board of Directors of Hindustan National Glass and Industries Limited

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Shri C.K. Somany ChairmanShri Sanjay Somany Managing DirectorShri Mukul Somany Joint Managing DirectorShri Bhart Somany Head of Director

MAIN CLIENTS OF THE COMPANY

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ETC….

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WELFARE ACTIVITIES

HNG Industries limited provides various welfare facilities for the employees which are enumerated as follows: Provide uniform and shoes to the employees according to their department as per the

term of general agreement. Provide PPE’s to the employees. Provide Welfare facilities. Provide canteen and mess facility. Provide medical coverage to the employees. Club facility. Providing ambulance and first aid facility. Time to time various awards and rewards given to employees.

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SWOT ANALYSIS OF THE COMPANY

Every organization has some strength, weakness, opportunities and threats: Hindusthan National Glass And Industries Limited has some strength, weakness, opportunities and threats. These are follows.

STRENGTHS

The company is strong and well established company;

The company is customer oriented company;

It exists From 30 years;

Company produces good quality of glass bottles;

It has dynamic and forward looking management;

Up gradation & modernization of existing machine resulted in higher speed & efficiencies;

Company has attained ISO-9001 certificate for quality; and

Goodwill in the eyes of public.

WEAKNESS

At present the factory business strategies are not driven by core competency;

Absence of long terms planning; Absence of raw material near the factory place; Locus of control is absent; Less space & less number of godowns; Financial weakness (lack of working capital); Overstaffing; and Lack of good marketing strategies.

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OPPORTUNITIES

Suitable glass factory norms of government; Increase in demand in existing line of business; and

THREATS

Emergence of new competitive pressure example L&T ;

Due to the introduction of plastic & disposable cold drinks & beer bottles, glass product demand somewhat decreases;

Companies based on single product (bottles) only; and

Import of finished product to India due to less government regulation.

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SAFETY MEASURES

HNG Industries Limited lays utmost care towards health and safety of all

personnel. Central safety committee at the apex level and the department safety

committee at the shop floor are formed to review and monitor the safety activity.

Training on safety, fire fighting is given to all level of employees at the regular

intervals. The company is generally providing Personal Productive Equipments

like helmets, ear plugs, safety shoes, goggles etc. to their employees.

Employees are working in Batch Mixing/Furnace Area are provided 160 gms

Coconut oil per month and 100 gms Gur per day.

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HNG’s policy

Export and import policy:

Hindustan National Glass And Industries Limited exports their glass products to South East, Middle East, and Africa & First Word Countries in Europe &North America. It follows the EXIM Policy which has some principal objects:

To accelerate the country’s transition to a globally vibrant economy with a view to drives maximum benefit from expanding global market opportunities;

To stimulated sustained economic growth by providing access to essential raw materials, components, consumable and capital goods required for augmented production.

a) To enhance the technological strength and efficiency of Indian industry and services, there by improving their competitive strength while generating new employment opportunities and encourage the attainment of internationally accepted standard of quality; and

b) To provide consumer with good quality product at reasonable price.

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PURCHASE POLICY

The purchase policy of the HNG Industries Limited includes the following :a) Company maintains the goodwill of approval vendors.b) Purchase preference is given to those who have adopted internationally known quality

management system.c) There are continuous checks on inventory levels so as to avoid the situation of over

stocks.d) Purchases are done keeping the quality aspect in view.

The company aims at producing the higher quality of glass to satisfy his customers. This is achieved by :

Adoption and implement of quality utilization of requirement of ISO: 9001. Continuous upgradation of technology for optimum utilization of resources and

manufacturing products in cost effective manner. Imbibing the culture of continuous quality improvement through motivation and plant

training of all employees.

Specimen of various standardizes forms being used in this company for carrying out the various functions of purchase department as describe is enclosed at the end.

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SALES POLICY

The sales policy of HNG Industries Limited includes the following:a) Company maintains the goodwill of all the customers.b) Sales preference is given to those who have adopted internationally known quality

management system.c) There are continuous checks on inventory levels so as to avoid the situation of

overstocks.d) Sales are done keeping the quality aspects in view.

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QUALITY ASSURANCE AND QUALITY CONTROL IN BOTTLE FORMING

In Quality Assurance,

Dimensional: Performance; Weight; and Capacity.

In Quality Control Annealing (Temperature Setting) & Monitoring; Lehr Speed Adjustments; Online Inspection (Sorting); Lehr End Cavity(Mould) Inspection by Lehr checkers; Lot Sampling; Weight & Capacity; Pressure Testing; Thermal Shock Testing; Bottles Dimensions Checking; AND Resorting.

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QM –Overview at HNG

Process Control <--------------------------> Product Control

Forming Process (At I.S. Machines) Final QC

Quality Assurance

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Glass (Green/flint) Manufacture of container

The manufacture of glass is based on utilization of the most widely occurring natural raw materials. After oxygen, silicon and aluminium are the most widely represented elements in the earth crust. The minerals composed of these elements e.g. (quartz, silicate, alumina silicate) Also dolomite the essential raw material for the glass industries. The Manufacture silicate were from these and some other raw material belong to The technology of silicate. In the sense of the term glass is an inorganic product of fusion which has been cooled to a rigid Condition without crystallization. Melting is in fact the large scale industrial method of glass making.

The main operations in making a soda lime glass (green /flint glass).

A. Batch preparation.B. Melting.C. Forming.D. Annealing.E. Quality checking.

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%) of raw materials needed for manufacturing of ;

A. For green glass ;- i. Sand (amber) (70-72%).

ii. Soda ash (10-15%).iii. Lime stone (8-9%).iv. Dolomite (1-2%).v. Feldspar (3-4%).

vi. Sodium sulphate (0.2-0.3%)vii. Chromite (15-18%).

viii. Charcoal (0.2-0.3%).ix. Cullet (40-50%

B. For flint glass;-i. Sand (flint) (70-72%).

ii. Soda ash (13-14%).iii. Lime stone (9-10%).iv. Dolomite (3-4%).v. Feldspar (4-5%).

vi. Sodium sulphate (0.3-0.4%).vii. Hematite (0.002%).

viii. Charcoal (0.001-0.002%).ix. Cullet (40-50%).

How bottles are made

The entire process of bottle making is almost fully automated. An automated feeder separates a stream of molten glass into individual gobs. These are then dropped through tubes in a moving track. The gob is shaped into what looks like a short bottle with thick walls and is called a person. The person is transferred to

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a final mould made of iron, which moves up and clamps around the glass. Air is blown into the glass till it acquires the final shape of the mould. This procedure involving expansion is called blowing. The bottle is then released from the mould and annealed.

Bottle Making (Moulding Process)

Annealing is done by reheating the glass and gradually cooling it. Such a process removes the stresses and strains in the glass after shaping. This is an important step and if not done may cause the glass to shatter as a result of the build-up of tension caused by uneven cooling. After the bottles have cooled to room temperature, they are inspected and finally packaged. 

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Plastic bottles may be made from polyethylene, polypropylene or polyvinyl chloride. Large cold drink bottles are made of polyethylene terephalate (PET). These bottles are designed in such a way that the gases used to carbonate the soft drinks are unable to escape.  There are three different methods used for processing plastic bottles – extrusion blow moulding (in which the parison is tube shaped), injection blow moulding (in which the parison is prepared by injecting molten plastic through a small hole) and injection stretch blow moulding (in which the plastic is blown into the mould while it is simultaneously being

stretched by a metal rod).   

ISO AWARENESS

Standards System Significance

ISO 9001:2000 Quality Management System (QMS)

System to ensure quality objectives for the process in totality to achieve

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customer satisfaction in through continual ; improvements in the process & having proper methodology to assess & measure the results .

ISO 14001 Environmental Management System (EMS)

System co-related with QMS ; to measure & controls the effects of the process , its products & wastages on the environment ; with a view to conserve & preserve energy & environment .

ISO 18001 Occupational Health & Safety Assessment Series (OAHSAS)

Safety system co- related with QMS ; to ensure health & safety conditions in the process & its products which calls for proper working conditions for everyone involved in the process .

ISO 22000 Hazard Analysis of Critical Control Points (HACCP)

System co- related with QMS ; to detect & control critical points in the process & sub Processes and establish a standard to ensure its prevention with a view of complete safety .

MANUFACTURING PROCESS OF THE GLASS

Process:Modern glass container factories are broadly divided into three parts: the batch house, the hot end and the cold end. The batch house is concerned with raw materials. In the hot end are furnaces, machines that produce the containers (forming machines) and annealing ovens. In the cold end there are the inspection and packaging equipment.

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Batch houseThe batch house holds the raw materials for glass, primarily sand, soda ash, limestone, feldspar (as well as others). These materials are received (typically by truck or rail transport) and elevated into storage silos. From the silos they are weighed out into a batch of several tones, using common glass batch calculation procedures. The batch is mixed and sent to silos over the furnace.

Hot endThe common viscosity fix points, applicable to large-scale glass production and experimental glass melting in the laboratory T

FurnaceThe hot end of a glassworks is where the molten glass is formed into containers, beginning when the batch is fed at a slow controlled rate into the furnace. The furnaces are natural gas or fuel oil fired and operates at temperatures up to 1675°C. The temperature is limited by the quality of the furnace superstructure material and by the glass composition. Glass furnaces typically operate an energy recovery scheme known as regeneration. The hot exhaust gas flow back over one of two piles of loosely packed bricks, called regenerators. These bricks become hot and every 20-30 minutes the flow of the combustion system is changed over so that the combustion air, which is mixed with the gas, is drawn through the heated bricks, and the combustion exhaust flows through the other pile of bricks. The batch melts inside the furnace which is maintained as a pool of molten glass, perhaps 1200mm deep by 50 to 150 m². The molten glass flows from a sub ducted channel known as the furnace throat into the refiner and fore hearth channels. These channels, 1200mm wide and 400-150mm deep transport the glass to the glass bottle forming machines. These channels cool the glass very precisely so that the glass at the forming machine is of a uniform and exact temperature.

Forming processThere are currently two primary methods of making a glass container - the blow and blow method and the press and blow method. In all cases a stream of molten glass at its plastic temperature (1050°C-1200°C) is cut by a shearing blade to form a cylinder of glass called a gob. Both of the processes start with this gob falling by gravity and guided by troughs and chutes into the blank moulds. In the blow and blow process, the glass first is blown from below into the blank moulds to create a parison or pre-container. This parison is then flipped over into a final mould, where a final blow blows the glass out in to the mould to make the final container shape. In the case of press and blow, the parison is

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formed by a metal plunger which pushes the glass out into the blank mould. The process then continues as before, with the parison being transferred to the mould, and the glass being blown out into the mould.

Forming machinesThe forming machines hold and move the parts that form the container. Generally powered by compressed air, the mechanisms are timed to coordinate the movement of all these parts so that containers are made.The most widely used forming machine arrangement is the individual section machine (or IS machine), invented in 1903 by Michael J Owens in Illinois. This machine has a bank of 5-16 identical sections, each of which contains one complete set of mechanisms to make containers. The sections are in a row, and the gobs feed into each section via a moving chute, called the gob distributor. Sections make either one, two, three or four containers simultaneously. (Referred to as single, double, triple and quad gob). In the case of multiple gobs, the shears cut the gobs simultaneously, and they fall into the blank moulds in parallel.

Internal treatmentAfter the forming process, some containers—particularly those intended for alcoholic spirits—undergo a treatment to improve the chemical resistance of the inside, called internal treatment or dealkalization. This is usually accomplished through the injection of a sulfur- or fluorine-containing gas mixture into bottles at high temperatures. The gas is typically delivered to the container either in the air used in the forming process (that is, during the final blow of the container), or through a nozzle directing a stream of the gas into the mouth of the bottle after forming. The treatment renders the container more resistant to alkali extraction, which can cause increases in product pH, and in some cases container degradation.

AnnealingAs glass cools it shrinks and solidifies. Uneven cooling causes weak glass due to stress.

Even cooling is achieved by annealing. An annealing oven (known in the industry as a Lehr) heats the container to about 580°C then cools it, depending on the glass thickness, over a 20 – 60 minute period.

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Cold end The role of the cold end is to inspect the containers for defects, package the containers for shipment and label the containers.

Inspection equipmentGlass containers are 100% inspected; every container is inspected. Automatic machines inspect for a variety of faults. Typical faults include small cracks in the glass called checks, foreign inclusions called stones, bubbles in the glass called blisters and excessively thin walls. In addition to rejecting faulty containers, inspection equipment gathers statistical information and relays it to the forming machine operators in the hot end. Computer systems collect fault information to the mould that produced the container. This is done by reading the mould number on the container, which is encoded (as a numeral or a binary code of dots), on the container by the mould that made it. Operators carry out a range of checks manually on samples of containers, usually visual and dimensional checks.

Secondary processingSometimes container factories will offer services such as labeling. Several labeling technologies are available. Unique to glass is the Applied Ceramic Labeling process (ACL). This is screen-printing of the decoration onto the container with vitreous enamel paint, which is then baked on. An example of this is the old Coca-Cola bottle. The Absolute Bottles have various added services such as: Etching (Absolute Citron) Coating (Absolute Raspberry/Ruby Red) and Applied Ceramic Labeling (Absolute Blue/Pears/Red/Black)

PackagingGlass containers are packaged in various ways. Popular in Europe are bulk pallets with between 1000 and 4000 containers each. This is carried out by automatic machines (palletisers) which arrange and stack containers separated by layer sheets. Other possibilities include boxes and even hand sewn sacks. Once packed the new "stock units" are labeled and warehoused.

DATA ANALYSIS AND INTERPRETATION

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1. The basic objective of performance appraisal?

si.no. description no. of respondents percentage1 fully 38 762 partially 12 243 No - -

  total 50 100

Interpretation:

This analysis abdicates that majority of employee fully understand the basic objectives performance appraisal and only 24% of respondents partially understand the objective of performance appraisal.

2. Your performance is appraised as-

si.no. Description no. of respondents percentage

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1 Individually 40 80%

2 in team 10 20%

3 Both    

  Total 50 100%

Interpretation:

The analysis raveals that maximum no of employees’ performance is appraised is individually and about 20% of respondents’ performance is appraised in team.

3. Your performance is appraised by:

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si.no. Descriptionno. of Respondents percentage

1 manager 42 84%

2personal deptt.specialist    

3 high level manager 8 16%  total 50 100%

Interpretation:

This answer shows that 84% of respondent’s performance is appraised by manager while 16% of respondents performance is appraised by high level managers.

The system of appraisal provides the real measurement of the performance of the employee.

Si.No. Description No.of respondence Percentage

1 Correct 37 74%

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2 partially correct 10 20%

3 Incorrect 3 6%

  Total 50 100%

Interpretation:

The analysis shows that maximum number of employees thinks that appraisal provides real measurement of performance while 20% think that it provides partial measurement and 6% were of the opinion that it does not provide real measurement.

4. Appraisal system shows any scope of improvement in one’s performance.

si.no. description no. of respondents percentage1 agreed 32 642 partially agreed 10 203 disagreed 8 16

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  total 50 100

Interpretation:

The analysis reveals that 60% of respondents are of the openion that performance appraisal shows scope of improvement in one’s performance while 20% of them are partially agreed and 16% of them think it does not help.

5. Performance appraisal helps you in:

si.no. description no. of respondents percentage1 promotion 39 782 career planing 7 143 goal achivement 4 8

  total 50 100

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Interpretation: This analysis implies that 78% of respondent think that it helps in promotion, 14% of them think that it helps in career planning and 8% of them think that it helps in goal achievement.

6. Appraisal system helps you to know your progress in achiving the set target.

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si.no. description no. of respondents Percentage1 TRUE 42 842 partially true 8 163 FALSE    

  total 50 100

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Interpretation:

This analysis indicates that maximum no. of employees think that appraisal system helps in achieving the set target and 60% respondents think that this system is not much helpful in achieving the set targets.

7. To what extent you are satisfied with the existent performance appraisal system.

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si.no. description no. of respondents Percentage1 to a great extent 35 702 to a little extent 5 103 to some extent 10 20

  total 50 100

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Interpretation:

This analysis implies that 70% of respondents are satisfied with the existing performance appraisal to a great extent, 10% of them are satisfied to a little extent and 20% of them are satisfied to some extent.

8. Time spend on your feedback.

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si.no. description no. of respondents Percentage1 30 min 10 202 60 min 40 80

3more then 60 min    

  total 50 100

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Interpretation:

The above table and pie chart reveals that almost 80% employees in the sample indicated that organization give almost one hour to take their appraisal. However it is significant to note that 20% employee’s feels that they get less then half an hour to be appraised.

9. Is the performance appraisal system is transparent.

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si.no. description no. of respondents Percentage1 yes 46 922 no 4 8  total 50 100

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Interpretation:

This analysis shows that 92% of respondents think that performance appraisal system is transparent and 8% of them think that the system is not transparent.

10. Do you feel that rewards are given according to your performance?

si.no. description no. of respondents Percentage1 yes 36 722 no 14 28  total 50 100

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Interpretation:

As per the analysis 72% of respondents think that rewards are given according to their performance while 28% of them think that rewards are not given to them according to their performance.

11. Is honest feedback given to you ?

si.no. description no. of respondents Percentage1 yes 41 822 no 9 18  FALSE    

  total 50 100

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Interpretation:

This analysis shows that majority of employees said that honest feedback is given to them and 80% of them says that feedback given to them is not honest.

12. If any development is required after performance appraisal then proper training is given to you?

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si.no. description no. of respondents Percentage1 yes 42 842 no 8 16  total 50 100

       

Interpretation:

This analysis shows that 84% of respondents says that training is given to them if any development is required after performance analysis.

a. Do you think performance appraisal is necessary in the organization?

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si.no. description no. of respondents Percentage1 yes 38 76%2 no 6 12%

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